Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Trading Symbol | TGH |
Entity Registrant Name | Textainer Group Holdings Limited |
Entity Central Index Key | 0001413159 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 56,817,918 |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Title of 12(b) Security | Common Shares, $0.01 par value |
Security Exchange Name | NYSE |
Entity File Number | 001-33725 |
Entity Incorporation, State or Country Code | D0 |
Entity Address, Address Line One | Century House |
Entity Address, Address Line Two | 16 Par-La-Ville Road |
Entity Address, City or Town | Hamilton |
Entity Address, Country | BM |
Entity Address, Postal Zip Code | HM 08 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Document Accounting Standard | U.S. GAAP |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | Textainer Group Holdings Limited |
Entity Address, Address Line Two | Century House |
Entity Address, City or Town | Hamilton |
Entity Address, Country | BM |
Entity Address, Postal Zip Code | HM 08 |
Contact Personnel Name | Michael J. Harvey |
Entity Address, Address Line Three | 16 Par-La-Ville Road |
City Area Code | 441 |
Local Phone Number | 296-2500 |
Contact Personnel Email Address | mjh@textainer.com |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues: | ||||
Lease rental income | $ 619,760 | $ 612,704 | $ 549,454 | |
Trading container margin | 7,398 | 3,450 | 1,456 | |
Gain on sale of owned fleet containers, net | 21,397 | 36,071 | 26,210 | |
Operating expenses: | ||||
Distribution expense to managed fleet container investors | 93,858 | 102,992 | 96,718 | |
Depreciation expense | [1] | 260,372 | 249,500 | 235,293 |
Container lessee default expense, net | [1] | 7,867 | 17,948 | 4,605 |
Amortization expense | 2,093 | 3,721 | 4,092 | |
General and administrative expense | 38,142 | 44,317 | 39,677 | |
Bad debt expense, net | 2,002 | 2,697 | 477 | |
Gain on insurance recovery and legal settlement | (14,881) | (8,692) | ||
Gain on settlement of pre-existing management agreement | (1,823) | |||
Total operating expenses | 433,461 | 466,328 | 440,400 | |
Income from operations | 222,684 | 194,426 | 143,866 | |
Other (expense) income: | ||||
Interest expense | (153,185) | (138,427) | (117,475) | |
Write-off of unamortized deferred debt issuance costs and bond discounts | (881) | (7,550) | ||
Interest income | 2,505 | 1,709 | 613 | |
Realized gain (loss) on derivative instruments, net | 1,946 | 5,238 | (1,191) | |
Unrealized (loss) gain on derivative instruments, net | (15,442) | (5,790) | 4,094 | |
Other, net | (4) | 3 | ||
Net other expense | (164,180) | (138,151) | (121,506) | |
Income before income tax and noncontrolling interests | [2] | 58,504 | 56,275 | 22,360 |
Income tax expense | (1,948) | (2,025) | (1,618) | |
Net income | 56,556 | 54,250 | 20,742 | |
Less: Net loss (income) attributable to the noncontrolling interests | 168 | (3,872) | (1,377) | |
Net income attributable to Textainer Group Holdings Limited common shareholders | $ 56,724 | $ 50,378 | $ 19,365 | |
Net income attributable to Textainer Group Holdings Limited common shareholders per share: | ||||
Basic | $ 0.99 | $ 0.88 | $ 0.34 | |
Diluted | $ 0.99 | $ 0.88 | $ 0.34 | |
Weighted average shares outstanding (in thousands): | ||||
Basic | 57,349 | 57,200 | 56,845 | |
Diluted | 57,459 | 57,487 | 57,159 | |
Other comprehensive income (loss): | ||||
Change in derivative instruments designated as cash flow hedges | $ (110) | |||
Reclassification of realized gain on derivative instruments designated as cash flow hedges | (7) | |||
Foreign currency translation adjustments | 42 | $ (127) | $ 207 | |
Comprehensive income | 56,481 | 54,123 | 20,949 | |
Comprehensive loss (income) attributable to the noncontrolling interest | 168 | (3,872) | (1,377) | |
Comprehensive income attributable to Textainer Group Holdings Limited common shareholders | 56,649 | 50,251 | 19,572 | |
Owned Fleet | ||||
Revenues: | ||||
Lease rental income | 517,859 | 501,362 | 444,888 | |
Operating expenses: | ||||
Direct container expense - owned fleet | [1] | 45,831 | 53,845 | 59,538 |
Managed Fleet | ||||
Revenues: | ||||
Lease rental income | 101,901 | 111,342 | 104,566 | |
Operating expenses: | ||||
Distribution expense to managed fleet container investors | 93,858 | 102,992 | 96,718 | |
Management Fees - Non-Leasing | ||||
Revenues: | ||||
Revenue | 7,590 | 8,529 | 7,146 | |
Trading Containers | ||||
Revenues: | ||||
Revenue | 58,734 | 19,568 | 4,758 | |
Cost of trading containers sold | $ (51,336) | $ (16,118) | $ (3,302) | |
[1] | Amounts for the years ended December 31, 2018 and 2017 have been reclassified to conform with 2019 presentation (see Note 1 (u) “Reclassifications and Changes in Presentation”). | |||
[2] | (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized loss on derivative instruments, net of $15,442 and $5,790 for the years ended December 31, 2019 and 2018, respectively, and unrealized gain of $4,094 for the year ended December 31, 2017, and write-off of unamortized deferred debt issuance costs and bond discounts of $881 and $7,550 for the years ended December 31, 2018 and 2017, respectively. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 180,552 | $ 137,298 | |
Accounts receivable, net of allowance for doubtful accounts of $6,299 and $5,729, respectively | [1] | 109,384 | 134,225 |
Net investment in direct financing and sales-type leases | 40,940 | 39,270 | |
Container leaseback financing receivable | 20,547 | ||
Trading containers | 11,330 | 40,852 | |
Containers held for sale | 41,884 | 21,874 | |
Prepaid expenses and other current assets | [1] | 14,816 | 23,139 |
Due from affiliates, net | 1,880 | 1,692 | |
Total current assets | 421,333 | 398,350 | |
Restricted cash | 97,353 | 87,630 | |
Containers, net of accumulated depreciation of $1,443,167 and $1,322,221, respectively | 4,156,151 | 4,134,016 | |
Net investment in direct financing and sales-type leases | 254,363 | 127,790 | |
Container leaseback financing receivable | 251,111 | ||
Fixed assets, net of accumulated depreciation of $12,266 and $11,525, respectively | 1,128 | 2,066 | |
Intangible assets, net of accumulated amortization of $45,359 and $43,266, respectively | 5,291 | 7,384 | |
Derivative instruments | 135 | 5,555 | |
Deferred taxes | 1,388 | 2,087 | |
Other assets | 14,364 | 3,891 | |
Total assets | 5,202,617 | 4,768,769 | |
Current liabilities: | |||
Accounts payable and accrued expenses | [1] | 23,404 | 27,297 |
Container contracts payable | 9,394 | 42,710 | |
Other liabilities | 2,636 | 219 | |
Due to container investors, net | [1] | 21,978 | 30,672 |
Debt, net of unamortized costs of $8,120 and $5,738, respectively | 242,433 | 191,689 | |
Total current liabilities | 299,845 | 292,587 | |
Debt, net of unamortized costs of $21,446 and $22,248, respectively | 3,555,296 | 3,218,138 | |
Derivative instruments | 13,778 | 3,639 | |
Income tax payable | 9,909 | 9,570 | |
Deferred taxes | 7,789 | 7,039 | |
Other liabilities | 30,355 | 1,805 | |
Total liabilities | 3,916,972 | 3,532,778 | |
Textainer Group Holdings Limited shareholders' equity: | |||
Common shares, $0.01 par value. Authorized 140,000,000 shares; 58,326,555 shares issued and 56,817,918 shares outstanding at 2019; 58,032,164 shares issued and 57,402,164 shares outstanding at 2018 | 583 | 581 | |
Treasury shares, at cost, 1,508,637 and 630,000 shares, respectively | (17,746) | (9,149) | |
Additional paid-in capital | 410,595 | 406,083 | |
Accumulated other comprehensive loss | (511) | (436) | |
Retained earnings | 866,458 | 809,734 | |
Total Textainer Group Holdings Limited shareholders’ equity | 1,259,379 | 1,206,813 | |
Noncontrolling interest | 26,266 | 29,178 | |
Total equity | 1,285,645 | 1,235,991 | |
Total liabilities and equity | $ 5,202,617 | $ 4,768,769 | |
[1] | Certain amounts for the year ended December 31, 2018 have been reclassified to report the gross amounts of accounts receivable, prepaid expenses, accounts payable and accrued expenses arising from the managed fleet instead of the net presentation (see Note 2 “Immaterial Reclassification and Adjustment of Prior Periods” and Note 1 (u) “Reclassifications and Changes in Presentation “). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 6,299 | $ 5,729 |
Containers, accumulated depreciation | 1,443,167 | 1,322,221 |
Fixed assets, accumulated depreciation | 12,266 | 11,525 |
Intangible assets, accumulated amortization | 45,359 | 43,266 |
Debt, net of unamortized costs current | 8,120 | 5,738 |
Debt, net of unamortized costs non current | $ 21,446 | $ 22,248 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, Authorized | 140,000,000 | 140,000,000 |
Common shares, issued | 58,326,555 | 58,032,164 |
Common shares, outstanding | 56,817,918 | 57,402,164 |
Treasury shares, at cost, shares | 1,508,637 | 630,000 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Total | Common shares | Treasury shares | Additional Paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Total Textainer Group Holdings Limited shareholders' equity | Noncontrolling interest |
Beginning Balances at Dec. 31, 2016 | $ 1,180,540 | $ 575 | $ (9,149) | $ 390,780 | $ (516) | $ 739,991 | $ 1,121,681 | $ 58,859 |
Beginning Balances (in shares) at Dec. 31, 2016 | 57,417,119 | (630,000) | ||||||
Dividends paid to noncontrolling interest | (2,496) | (2,496) | ||||||
Restricted share units vested | $ 2 | (2) | ||||||
Restricted share units vested (in shares) | 244,633 | |||||||
Exercise of share options | $ 961 | $ 1 | 960 | 961 | ||||
Exercise of share options (in shares) | 65,468 | 65,468 | ||||||
Share-based compensation expense | $ 6,083 | 6,083 | 6,083 | |||||
Comprehensive income: | ||||||||
Net income attributable to Textainer Group Holdings Limited common shareholders | 19,365 | 19,365 | 19,365 | |||||
Net income attributable to noncontrolling interests | 1,377 | 1,377 | ||||||
Foreign currency translation adjustments | 207 | 207 | 207 | |||||
Comprehensive income | 20,949 | |||||||
Ending Balances at Dec. 31, 2017 | 1,206,037 | $ 578 | $ (9,149) | 397,821 | (309) | 759,356 | 1,148,297 | 57,740 |
Ending Balances (in shares) at Dec. 31, 2017 | 57,727,220 | (630,000) | ||||||
Dividends paid to noncontrolling interest | (1,996) | (1,996) | ||||||
Restricted share units vested | $ 3 | (3) | ||||||
Restricted share units vested (in shares) | 289,685 | |||||||
Exercise of share options | $ 130 | 130 | 130 | |||||
Exercise of share options (in shares) | 15,259 | 15,259 | ||||||
Share-based compensation expense | $ 7,355 | 7,355 | 7,355 | |||||
TW Container Leasing, Ltd. capital restructuring | (29,658) | 780 | 780 | (30,438) | ||||
Comprehensive income: | ||||||||
Net income attributable to Textainer Group Holdings Limited common shareholders | 50,378 | 50,378 | 50,378 | |||||
Net income attributable to noncontrolling interests | 3,872 | 3,872 | ||||||
Foreign currency translation adjustments | (127) | (127) | (127) | |||||
Comprehensive income | 54,123 | |||||||
Ending Balances at Dec. 31, 2018 | 1,235,991 | $ 581 | $ (9,149) | 406,083 | (436) | 809,734 | 1,206,813 | 29,178 |
Ending Balances (in shares) at Dec. 31, 2018 | 58,032,164 | (630,000) | ||||||
Dividends paid to noncontrolling interest | (2,744) | (2,744) | ||||||
Purchase of treasury shares | $ (8,597) | $ (8,597) | (8,597) | |||||
Purchase of treasury shares (in shares) | (878,637) | (878,637) | ||||||
Restricted share units vested | $ 2 | (2) | ||||||
Restricted share units vested (in shares) | 281,377 | |||||||
Exercise of share options | $ 126 | 126 | 126 | |||||
Exercise of share options (in shares) | 13,014 | 13,014 | ||||||
Share-based compensation expense | $ 4,388 | 4,388 | 4,388 | |||||
Comprehensive income: | ||||||||
Net income attributable to Textainer Group Holdings Limited common shareholders | 56,724 | 56,724 | 56,724 | |||||
Net income attributable to noncontrolling interests | (168) | (168) | ||||||
Change in derivative instruments designated as cash flow hedges | (110) | (110) | (110) | |||||
Reclassification of realized gain on derivative instruments designated as cash flow hedges | (7) | (7) | (7) | |||||
Foreign currency translation adjustments | 42 | 42 | 42 | |||||
Comprehensive income | 56,481 | |||||||
Ending Balances at Dec. 31, 2019 | $ 1,285,645 | $ 583 | $ (17,746) | $ 410,595 | $ (511) | $ 866,458 | $ 1,259,379 | $ 26,266 |
Ending Balances (in shares) at Dec. 31, 2019 | 58,326,555 | (1,508,637) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities: | ||||
Net income | $ 56,556 | $ 54,250 | $ 20,742 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation expense | [1] | 260,372 | 249,500 | 235,293 |
Container write-off from lessee default, net | [1] | 7,179 | 12,980 | 3,822 |
Bad debt expense, net | 2,002 | 2,697 | 477 | |
Unrealized loss (gain) on derivative instruments, net | 15,442 | 5,790 | (4,094) | |
Amortization and write-off of unamortized deferred debt issuance costs and accretion of bond discounts | 7,953 | 9,531 | 20,814 | |
Amortization of intangible assets | 2,093 | 3,721 | 4,092 | |
Gain on sale of owned fleet containers, net | (21,397) | (36,071) | (26,210) | |
Gain on insurance recovery and legal settlement | (14,881) | (8,692) | ||
Gain on settlement of pre-existing management agreement | (1,823) | |||
Share-based compensation expense | 4,388 | 7,355 | 6,083 | |
Decrease (increase) in: | ||||
Accounts receivable, net | [2] | 25,530 | (34,113) | (10,860) |
Trading containers, net | 19,549 | (30,100) | (6,389) | |
Net investment in direct financing and sales-type leases | [1] | 49,796 | 63,847 | 66,846 |
Interest portion of container leaseback financing receivable | (2,286) | |||
Prepaid expenses and other current assets | [1],[2] | 8,693 | 12,072 | 10,114 |
Due from affiliates, net | (39) | (558) | (265) | |
Other assets | (10,000) | 1,603 | 2,581 | |
Increase (decrease) in: | ||||
Accounts payable and accrued expenses | [1],[2] | (4,363) | 808 | (2,386) |
Other liabilities | 13,519 | (235) | (265) | |
Due to container investors, net | [2] | (6,407) | 611 | (2,045) |
Long-term income tax payable | 339 | 489 | 5 | |
Deferred taxes, net | 1,449 | 634 | (534) | |
Total adjustments | 371,989 | 261,869 | 297,079 | |
Net cash provided by operating activities | 428,545 | 316,119 | 317,821 | |
Cash flows from investing activities: | ||||
Purchase of containers and fixed assets | (466,993) | (854,383) | (300,125) | |
Payments on container leaseback financing receivable | (281,445) | |||
Payment for Leased Assets Pool Company Limited, net of cash acquired | (171,841) | |||
Payment for TW Container Leasing, Ltd. capital restructuring | (29,658) | |||
Proceeds from sale of containers and fixed assets | 150,742 | 147,254 | 135,299 | |
Receipt of principal payments on container leaseback financing receivable | 7,745 | |||
Insurance proceeds received for unrecoverable containers | 12,616 | |||
Net cash used in investing activities | (761,792) | (736,787) | (152,210) | |
Cash flows from financing activities: | ||||
Proceeds from debt | 1,439,223 | 2,029,025 | 1,729,580 | |
Principal payments on debt | (1,049,857) | (1,608,753) | (1,770,715) | |
Purchase of treasury shares | (8,597) | |||
Proceeds from container leaseback financing liability, net | 17,448 | |||
Debt issuance costs | (9,417) | (10,252) | (27,702) | |
Issuance of common shares upon exercise of share options | 126 | 130 | 961 | |
Dividends paid to noncontrolling interest | (2,744) | (1,996) | (2,496) | |
Net cash provided by (used in) financing activities | 386,182 | 408,154 | (70,372) | |
Effect of exchange rate changes | 42 | (127) | 207 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 52,977 | (12,641) | 95,446 | |
Cash, cash equivalents and restricted cash, beginning of the year | 224,928 | 237,569 | 142,123 | |
Cash, cash equivalents and restricted cash, end of the year | 277,905 | 224,928 | 237,569 | |
Supplemental disclosures of cash flow information: | ||||
Cash paid for interest expense and realized gain on derivative instruments, net | 142,248 | 123,581 | 105,322 | |
Net income taxes paid | 42 | 1,138 | 925 | |
Supplemental disclosures of noncash operating activities: | ||||
Right-of-use asset for leased properties | 11,276 | |||
Supplemental disclosures of noncash investing activities: | ||||
(Decrease) increase in accrued container purchases | (33,316) | (88,377) | 119,097 | |
Containers placed in direct financing and sales-type leases | $ 173,856 | 53,859 | 9,378 | |
Decrease in insurance receivable due to a decrease in estimated unrecoverable containers | $ 2,049 | $ 7,546 | ||
[1] | Amounts for the years ended December 31, 2018 and 2017 have been reclassified to conform with 2019 presentation (see Note 1 (u) “Reclassifications and Changes in Presentation”). | |||
[2] | Amounts for the years ended December 31, 2018 and 2017 have been reclassified to report the gross amounts of accounts receivable, prepaid expenses, accounts payable and accrued expenses arising from the managed fleet instead of the net presentation (see 2 “Immaterial Reclassification and Adjustment of Prior Periods” and Note 1 (u) “Reclassifications and Changes in Presentation “). |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | (1) Nature of Business and Summary of Significant Accounting Policies (a) Nature of Operations Textainer Group Holdings Limited (“TGH”) is incorporated in Bermuda. TGH is the holding company of a group of companies, consisting of TGH and its subsidiaries (collectively, the “Company”), involved in the purchase, management, leasing and resale of a fleet of marine cargo containers. The Company manages and provides administrative support to the affiliated and unaffiliated third-party owners’ (the “Container Investors”) container fleets. The Company conducts its business activities in three main areas: Container Ownership, Container Management and Container Resale. These activities are described below (also see Note 10 “Segment Information”). Container Ownership The Company’s containers consist primarily of standard dry freight containers, but also include refrigerated and other special-purpose containers. These owned containers are financed through retained earnings; revolving credit facilities, secured debt facilities and a term loan provided by banks; bonds payable to investors; and a public offering of TGH’s common shares. Expenses related to lease rental income of the owned fleet primarily include direct container expenses, depreciation expense and interest expense. Container Management The Company manages, on a worldwide basis, a fleet of containers for and on behalf of the Container Investors. All rental operations are conducted worldwide in the name of the Company who, as agent for the Container Investors, acquires and sells containers, enters into leasing agreements and depot service agreements, bills and collects lease rentals from the lessees, disburses funds to depots for container handling, and remits net amounts, less management fees and commissions, to the Container Investors. Fees earned by the Company under the management agreements are typically a percentage of net operating income of each Container Investor’s fleet and consist of fees for leasing services related to the management of the containers, sales commissions and net acquisition fees earned on the acquisition of containers. Lease rental income and expenses arising from the operation of the managed fleet are presented on a gross basis, whereby revenue billed to shipping lines and expenses incurred and distributions to the container investors of the managed fleet are presented in the Company’s consolidated statements of comprehensive income. Accounts receivable and vendor payables arising from direct container operations of the managed containers are presented on a gross basis in the Company’s consolidated balance sheets. See Note 5 “Managed Container Fleet” for information on the managed fleet containers. Container Resale The Company buys and subsequently resells containers (trading containers) from third parties. Container sales revenue represents the proceeds on the sale of containers purchased for resale. Cost of containers sold represents the cost of equipment purchased for resale that were sold as well as the related selling costs. The Company earns sales commissions related to the sale of the containers that it manages. (b) Principles of Consolidation and Variable Interest Entity The consolidated financial statements of the Company include TGH and all of its subsidiaries in which the Company has a controlling financial interest. All significant intercompany accounts and balances have been eliminated in consolidation. The Company determines whether it has a controlling financial interest in an entity by evaluating whether the entity is a variable interest entity (“VIE”) or a voting interest entity (“VME”). If it is determined that the Company does not have a variable interest in the entity, no further analysis is required, and the Company does not consolidate the entity. TAP Funding On December 20, 2012, the Company’s wholly-owned subsidiary, Textainer Limited (“TL”), purchased 50.1% of the outstanding common shares of TAP Funding Ltd. (“TAP Funding”) (a Bermuda company) from TAP Ltd. (“TAP”). Both before and after this purchase, TAP Funding leases containers to lessees under operating, direct financing and sales-type leases. TAP is governed by members and management agreements and the Company’s wholly-owned subsidiary, Textainer Equipment Management Limited (“TEML”), manages all of TAP Funding’s containers, making day-to-day decisions regarding the marketing, servicing and design of TAP Funding’s leases. TL’s purchase of a majority ownership of TAP Funding’s common shares allowed the Company to increase the size of its owned fleet at an attractive price. Under TAP Funding’s members agreement, TL owns 50.1% and TAP owns 49.9% of the common shares of TAP Funding. As common shareholders, TL has two voting rights and TAP has one voting right of TAP Funding, with the exception of certain matters such as bankruptcy proceedings and the incurrence of debt and mergers and consolidations, which require unanimity. TL also has two seats and TAP has one seat on TAP Funding’s board of directors. In addition, TL has an option to purchase the remaining outstanding common shares of TAP Funding held by TAP during the period beginning January 1, 2023 and through December 31, 2024 for a purchase price equal to the equity carrying value of TAP Funding plus 6% of TAP’s percentage ownership interest in TAP Funding minus the sum of any and all U.S. federal, state and local taxes of any nature that would be recognized by TL if TAP Funding was liquidated by TL immediately after TL purchased its shares. TAP Funding is a VME and the Company consolidates TAP Funding as the Company has a controlling financial interest in TAP Funding, in which TL owns 50% or more voting interest. TAP Funding’s profits and losses are allocated to TL and TAP on the same basis as their ownership percentages. The equity owned by TAP in TAP Funding is shown as a “noncontrolling interest” on the Company’s consolidated balance sheets and the net income (loss) attributable to the noncontrolling interest’s operations is shown as “net (income) loss attributable to the noncontrolling interests” on the Company’s consolidated statements of comprehensive income. TWCL The Company had a joint venture, TW Container Leasing, Ltd. (“TW”) (a Bermuda company), between TL and Wells Fargo Container Corp. (“WFC”). TL owned 25% and WFC owned 75% of the common shares and related voting rights of TW. The purpose of TW was to lease containers to lessees under direct financing leases. In October 2018, TL entered into an agreement to purchase 75% of the total outstanding common shares of TW from WFC for a cash consideration of $29,658. After the acquisition, TW became a wholly-owned subsidiary of TL. The Company accounted for this equity transaction as a reduction in the related noncontrolling interest. In January 2019, the Company dissolved TW Prior to the capital restructuring, the Company had determined that it had a variable interest in TW and that TW was a VIE. The Company consolidated TW as the Company had determined that it was the primary beneficiary of TW by its equity ownership in the entity and by virtue of its role as manager of the vehicle, namely that the Company had the power to direct the activities of TW that most significantly impact TW’s economic performance. After the capital restructuring which was effective on October 1, 2018, TW became a wholly-owned subsidiary of TL, therefore, the Company retained its controlling financial interest. As a result of the capital restructuring, TL acquired the noncontrolling interest (“NCI”) in TW which was reduced by $30,438 and the difference between the carrying value of the NCI and the cash consideration was recognized as an increase in additional paid-in capital (“APIC”) of $ 780 for the year end ed December 31, 2018. After the capital restructuring, there is no noncontrolling interest in TW on the Company’s consolidated balance sheets as of December 31, 2019 and 2018. The TW net income attributable to the noncontrolling interests’ operations for the period ended September 30, 2018, and for the year ended December 31, 2017, are shown as “net income attributable to the noncontrolling interests” on the Company’s consolidated statements of comprehensive income. There is no TW net income attributable Managed Containers The Company enters into container management agreements with Container Investors. The fees earned by the Company for managing container portfolios on behalf of Container Investors are commensurate with the level of effort required to provide those management services and the Company does not have the obligation to absorb losses or the right to receive benefits that may be significant to the Container Investors. As such, the Company is not the primary beneficiary and does not consolidate the Container Investors. Managed containers which are owned by Container Investors are not assets of the Company and are not included in the consolidated financial statements, except for certain managed containers that the Company is deemed to own with associated container leaseback financial liability of the Company in accordance with Topic 842, Leases Owned Containers The majority of the container equipment included in the accompanying consolidated financial statements is owned by TL, Textainer Marine Containers II Limited (“TMCL II”), Textainer Marine Containers V Limited (“TMCL V”), Textainer Marine Containers VI Limited (“TMCL VI”) and Textainer Marine Containers VII Limited (“TMCL VII”), all Bermuda companies and all of which were wholly-owned subsidiaries of the Company as of December 31, 2019 and 2018. On December 31, 2019, Leased Assets Pool Company Limited (“LAPCO”) became a wholly-owned subsidiary of the Company (see Note 4 “LAPCO Acquisition” for further discussion). All owned containers are pledged as collateral for debt as of December 31, 2019 and 2018. (c) Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents are comprised of interest-bearing deposits or money market securities with original maturities of three months or less. The Company maintains cash and cash equivalents and restricted cash (see Note 11 “Commitments and Contingencies—Restricted Cash”) with various financial institutions. These financial institutions are located in Bermuda, Canada, Hong Kong, Malaysia, Singapore, the United Kingdom and the United States. A significant portion of the Company’s cash and cash equivalents and restricted cash is maintained with a small number of banks and, accordingly, the Company is exposed to the credit risk of these counterparties in respect of the Company’s cash and cash equivalents and restricted cash. Furthermore, the deposits maintained at some of these financial institutions exceed the amount of insurance provided on the deposits. Restricted cash is excluded from cash and cash equivalents and is included in long-term assets reported within the consolidated balance sheets. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the amounts shown in the consolidated statements of cash flows: 2019 2018 2017 Cash and cash equivalents $ 180,552 $ 137,298 $ 137,894 Restricted cash included in long-term assets 97,353 87,630 99,675 Cash, cash equivalents and restricted cash, end of period $ 277,905 $ 224,928 $ 237,569 (d) Intangible Assets Intangible assets, consisting primarily of exclusive rights to manage container fleets, are amortized over the expected life of the contracts based on forecasted income to the Company. The contract terms range from 11 to 13 years. The Company reviews its intangible assets for impairment if events and circumstances indicate that the carrying amount of the intangible assets may not be recoverable. The Company compares the carrying value of the intangible assets to expected future undiscounted cash flows for the purpose of assessing the recoverability of the recorded amounts. If the carrying amount exceeds expected undiscounted cash flows, the intangible assets shall be reduced to their fair value. The Company recorded a write-off of intangible assets amounting to $2 and $835 during the years ended December 31, 2019 and 2018, respectively, for the management rights relinquished relating to the purchase of containers previously managed for a container investor. As of December 31, 2019, the aggregate future amortization of intangible assets of $5,291 is expected to amortize through year 2021. (e) Revenue Recognition The components of the Company’s revenue as presented in the consolidated statements of comprehensive income and in Note 10 “Segment Information” are as follows: Lease Rental Income Lease rental income arises principally from leasing containers to various international shipping lines and includes all rental charges billed to the lessees. Lease rental income - owned fleet comprises rental income for the container fleet owned by the Company. Lease rental income - managed fleet comprises rental income for the container fleet owned by the Container Investors. For lease accounting purposes, the management agreements with these Container Investors are deemed to convey to the Company the right to control the use of the managed containers and are therefore accounted for as “lease rental income - managed fleet” as reported in the consolidated statements of comprehensive income (see Note 5 “Managed Container Fleet” for further information). Revenue is recorded when earned according to the terms of the container rental contracts with customers. Revenue is earned and recognized evenly over the period that the equipment is on lease. These contracts are typically for terms of five or more years and are generally classified as operating leases. Where minimum lease payments vary over the lease term, revenue is recognized on a straight-line basis over the term of the lease. Lease rental income comprises daily per diem rental charges due under the lease agreements, together with payments for other charges set forth in the leases, such as handling fees, drop-off charges, pick-up charges, and charges for a damage protection plan. Under long-term lease agreements, containers are usually leased from the Company for periods of five or more years. Under master lease agreements, the lessee is not committed to leasing a minimum number of containers from the Company during the lease term and may generally return the containers to the Company at any time, subject to certain restrictions in the lease agreement. Under long-term lease and master lease agreements, revenue is earned and recognized evenly over the period that the equipment is on lease. Under direct financing and sales-type leases, the containers are usually leased from the Company for the remainder of the container’s useful life and ordinarily provide lessees with a right to purchase the subject containers for a nominal amount at the end of the lease term. Finance lease income is recognized using the effective interest method, which generates a constant rate of interest over the period of the lease. Under sales-type leaseback arrangements that are accounted for as financing transactions, payments made by the customers are recorded as a reduction to the container leaseback financing receivable and as interest income. Interest income is recognized using the effective interest method, which generates a constant rate of interest over the period of the arrangement. The Company’s container leases generally do not include step-rent provisions, nor do they depend on indices or rates. The Company recognizes revenue on container leases that include lease concessions in the form of free-rent periods using the straight-line method over the minimum terms of the leases. Management Fees - Non-leasing Under the Company’s management service agreements with Container Investors, fees are earned for the acquisition and sale of containers under management (see Note 5 “Managed Container Fleet” for further information). Acquisition fees from purchases of containers for managed fleet are deferred and recognized as earned on a straight-line basis over the deemed lease term. Trading Container Margin The Company’s trading container sales proceeds arise from the resale of new and used containers to a wide variety of buyers. The related expenses represent the cost of trading containers sold as well as other selling costs that are recognized as incurred. Revenue Gain on sale of owned fleet containers, net The Company also generally sells containers at the end of their useful lives or when it is financially attractive to do so. The gain on sale of owned fleet containers is the excess of the sale price over the carrying value for these units at the time of sale. Revenue is recorded when control of the containers is transferred to the customer, which typically occurs upon delivery to, or pick-up by, the customer and when collectability is reasonably assured. Gain on sale of owned fleet containers, net, also includes gains (losses) recognized at the inception of sales-type leases of our owned fleet, representing the excess (deficiency) of the estimated fair value of containers placed on sales-type leases over (below) their book value. Allowance for Doubtful Accounts The Company maintains detailed credit records about its container lessees. The Company’s credit committee sets different maximum exposure limits for its container lessees. The Company uses various credit criteria to set maximum exposure limits rather than a standardized internal credit rating. Credit criteria used by the Company to set maximum exposure limits may include, but are not limited to, container lessee trade route, country, social and political climate, assessments of net worth, asset ownership, bank and trade credit references, credit bureau reports, operational history and financial strength. The Company monitors its container lessees’ performance and its lease exposures on an ongoing basis, and its credit management processes are aided by the long payment experience the Company has had with most of its container lessees and the Company’s broad network of long-standing relationships in the shipping industry that provide the Company current information about its container lessees. The Company maintains allowances , if necessary, for doubtful accounts and estimated losses resulting from the inability of its lessees to make required payments under operating leases, container leaseback financing receivable, and direct financing and sales-type leases . These allowances are based on an ongoing review of the credit worthiness, but not limited to, each lessee’s payment history, management’s current assessment of the financial condition of the Company’s lessees , their ability to make their required payments and the recoverability . If the financial condition of the Company’s lessees deteriorates, resulting in an impairment of their ability to make payments, additional allowances may be required. Accounts receivables are generally written off after an analysis is completed which indicates that collection of the full balance is remote. Changes in economic conditions or other events may necessitate additions or deductions to the allowance for doubtful accounts. The allowance is intended to provide for losses inherent in the owned and managed fleet’s accounts receivable and requires the application of estimates and judgments as to the outcome of collection efforts and the realization of collateral, among other things. (f) Direct Container Expenses – Owned Fleet Direct container expense – owned fleet represents the operating costs arising from the containers owned by the Company and includes storage, handling, maintenance and repair, repositioning, agent, and insurance expense. These costs are recognized when incurred. ( g ) Distribution Expense to Managed Fleet Container Investors Our distribution amounts to Container Investors for the managed fleet includes the net operating income of each Container Investor’s fleet, reduced by associated lease management fees earned and retained by the Company. This amount is also reduced by expenses related to the operation of the managed containers which are presented on a gross basis in the consolidated statements of comprehensive income. Expenses related to the operation of the managed containers such as storage, handling, repairs, repositioning, agent, insurance expense and general and administrative expenses are recognized when incurred. ( h ) Trading Containers and Containers Held for Resale The Company, through one or more of its subsidiaries, buys trading containers for resale, which are valued at the lower of cost or fair value. The cost of trading containers sold is specifically identified. In addition, containers identified as being available for sale are valued at the lower of carrying value or fair value, less cost to sell. The fair value is estimated based on recent gross sales proceeds for sales of similar containers. Trading containers and containers held for resale are not subject to depreciation. ( i ) Foreign Currencies A functional currency is determined for each of the Company’s entities based on the currency of the primary economic environment in which the entity operates. The Company’s functional currency is the U.S. dollar, excluding its foreign subsidiaries Textainer Equipment Management (United Kingdom) Limited and Textainer Equipment Management (Singapore) Pte Ltd. Assets and liabilities denominated in a currency other than the entity’s functional currency are re-measured into its functional currency at the balance sheet date with a gain or loss recognized in current year net income. Foreign currency exchange gains or losses that arise from exchange rate changes on transactions denominated in a foreign currency are recognized in net income as incurred. Foreign currency exchange losses, reported in “direct container expense – owned fleet” in the consolidated statements of comprehensive income were $393, $1,085, and $156 for the years ended December 31, 2019, 2018 and 2017, respectively. For consolidation purposes, the financial statements are translated into U.S. dollars using the current exchange rate for the assets and liabilities and a weighted average exchange rate for the revenues and expenses recorded during the year with any translation adjustment shown as an element of accumulated other comprehensive income. (j) Fixed Assets Fixed assets are recorded at cost and depreciated on a straight-line basis over the estimated useful lives of such property, furniture and equipment, ranging from three to seven years. Expenditures for maintenance and repairs are expensed as they are incurred. ( k ) Containers Capitalized container costs include the container cost payable to the manufacturer and the associated transportation costs incurred in moving the Company’s containers from the manufacturer to the containers’ first destined port. Containers are depreciated using the straight-line method over their estimated useful lives to an estimated dollar residual value. Used containers are depreciated based upon their remaining useful lives at the date of acquisition to an estimated dollar residual value. The Company evaluates the estimated residual values and remaining estimated useful lives on a regular basis to determine whether a change in its estimates of useful lives and residual values is warranted. The Company completed its annual depreciation policy review and concluded no change was necessary during the year ended December 31, 2019. The Company estimates the useful lives and residual values of its containers to be as follows: As of December 31, 2019 As of December 31, 2018 Estimated Residual Estimated Residual life (years) Value life (years) Value Dry containers other than open top and flat rack containers: 20' 13 $ 1,000 13 $ 1,000 40' 14 $ 1,200 14 $ 1,200 40' high cube 13 $ 1,400 13 $ 1,350 to $1,400 45' high cube 13 $ 1,500 13 $ 1,500 Refrigerated containers: 20' 12 $ 2,750 12 $ 2,750 20' high cube 12 $ 2,049 12 $ 2,049 40' high cube 12 $ 4,000 12 $ 4,000 to $4,500 Open top and flat rack containers: 20' folding flat rack 15 $ 1,300 15 $ 1,300 40' folding flat rack 16 $ 1,700 16 $ 1,700 20' open top 15 $ 1,500 15 $ 1,500 40' open top 14 $ 2,500 14 $ 2,500 Tank containers 20 10% of cost 20 10% of cost The cost, accumulated depreciation and net book value of the Company’s container leasing equipment by equipment type as of December 31, 2019 and 2018 were as follows: 2019 2018 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Dry containers other than open top and flat rack containers: 20' $ 1,627,878 $ (396,247 ) $ 1,231,631 $ 1,632,927 $ (381,929 ) $ 1,250,998 40' 167,011 (58,852 ) 108,159 191,354 (69,463 ) 121,891 40' high cube 2,510,937 (592,374 ) 1,918,563 2,376,975 (540,349 ) 1,836,626 45' high cube 28,670 (11,488 ) 17,182 29,305 (10,034 ) 19,271 Refrigerated containers: 20' 20,484 (7,258 ) 13,226 20,883 (6,153 ) 14,730 20' high cube 5,139 (3,090 ) 2,049 5,148 (2,714 ) 2,434 40' high cube 1,052,707 (338,068 ) 714,639 1,030,078 (279,661 ) 750,417 Open top and flat rack containers: 20' folding flat 17,617 (4,538 ) 13,079 16,641 (4,068 ) 12,573 40' folding flat 51,152 (17,278 ) 33,874 46,182 (16,052 ) 30,130 20' open top 13,259 (1,625 ) 11,634 13,152 (1,419 ) 11,733 40' open top 23,313 (4,351 ) 18,962 27,629 (5,086 ) 22,543 Tank containers 81,151 (7,998 ) 73,153 65,963 (5,293 ) 60,670 $ 5,599,318 $ (1,443,167 ) $ 4,156,151 $ 5,456,237 $ (1,322,221 ) $ 4,134,016 See Note 5 “Managed Container Fleet” for information on the managed fleet containers included above and in the Company’s consolidated balance sheet effective January 1, 2019. Impairment of Container Rental Equipment The Company reviews its containers for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The Company compares the carrying value of the containers to the expected future undiscounted cash flows for the purpose of assessing the recoverability of the recorded amounts. If the carrying value exceeds expected future undiscounted cash flows, the assets are reduced to fair value. There was no such impairment on the Company’s leasing equipment for the years ended December 31, 2019, 2018 and 2017. Write-Off of Container Rental Equipment due to Lessees in Default The Company evaluates the recoverability of the recorded amounts of containers that are unlikely to be recovered from lessees in default. The Company recorded impairment charges during the years ended December 31, 2019, 2018 and 2017 of $7,179, $12,980 and $3,822, respectively, to write-off containers that were unlikely to be recovered from lessees in default, net of gains associated with recoveries on containers previously estimated as lost with lessees in default. These amounts are recorded in the consolidated statements of comprehensive income as “container lessee default expense, net”. Impairment of Containers Held for Sale Containers identified as being available for sale are valued at the lower of carrying value or fair value, less costs to sell. The Company records impairment to write-down the value of containers held for sale to their estimated fair value less cost to sell. The fair value was estimated based on recent gross sales proceeds for sales of similar containers. When containers are retired or otherwise sold, the cost and related accumulated depreciation are removed, and any resulting gain or loss is recognized. Any subsequent increase in fair value less cost to sell is recognized as a reversal of container impairment but not in excess of the cumulative loss previously recognized. During the years ended December 31, 2019, 2018 and 2017, the Company recorded container impairments of $14,238, $13,795 and $4,250, respectively, to write down the value of containers held for sale to their estimated fair value less cost to sell, net of reversals of previously recorded impairments on containers held for sale due to rising used container prices, and was included in “depreciation expense” in the consolidated statements of comprehensive income. During the years ended December 31, 2019, 2018 and 2017, the Company recorded the following net gain on sale of containers, included in “gain on sale of owned fleet containers, net” in the consolidated statements of comprehensive income: 2019 2018 2017 Units Amount Units Amount Units Amount Gain on sale of previously written down owned fleet containers, net 52,319 $ 6,665 28,291 $ 14,563 56,862 $ 18,662 Gain on sale of owned fleet containers not written down, net 52,126 14,732 79,119 21,508 55,505 7,548 Gain on sale of owned fleet containers, net 104,445 $ 21,397 107,410 $ 36,071 112,367 $ 26,210 ( l ) Income Taxes The Company uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded when the realization of a deferred tax asset is deemed to be unlikely. The Company also accounts for income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in the recognition or measurement are reflected in the period in which the change in judgment occurs. If there are findings in future regulatory examinations of the Company’s tax returns, those findings may result in an adjustment to income tax expense. The Company records interest and penalties related to unrecognized tax benefits in income tax expense. ( m ) Debt Issuance Costs The Company capitalizes costs directly associated with the issuance or modification of its debt and the balance of the debt issuance costs, net of amortization, are netted against the debt recorded in the consolidated balance sheets. Debt issuance costs are amortized using the interest rate method and the straight-line method over the general terms of the related fixed principal payment debt and the related revolving debt facilities, respectively, and the amortization is recorded as “interest expense” in the consolidated statements of comprehensive income. In 2019, 2018 and 2017, debt issuance costs of $9,417, $10,285 and $27,702, respectively, were capitalized and amortization of debt issuance costs of $7,369, $8,400 and $13,201, respectively, were recorded in interest expense. When the Company’s debt is modified or terminated, any unamortized debt issuance costs related to a decrease in borrowing capacity with any of the Company’s lenders is immediately written-off and recorded in write-off of unamortized deferred debt issuance costs and bond discounts. In 2018, write-off of unamortized deferred debt issuance costs and bond discounts included $529 and $352 of write-offs of unamortized debt issuance costs related to the amendment of the TL Revolving Credit Facility and the termination of the TL Term Loan, respectively, (see Note 9 “Debt and Derivative Instruments”). In 2017, write-off of unamortized deferred debt issuance costs and bond discounts included $ 238 , $ 6,516 and $ 84 of write-offs of unamortized debt issuance costs related to the amendment of TMCL II’s S ecured D ebt F acility, the redemption of TMCL III’s 2013-1 Bonds, 2014-1 Bonds, the termination of TMCL III’s 2017-A Notes and the amendment of TAP Funding’s S ecured D ebt F acility, respectively, (see Note 9 “Debt and Derivative Instruments”). No unamortized debt issuance costs were written-off during the year ended December 31, 201 9 . ( n ) Concentrations Although substantially all of the Company’s income from operations is derived from assets employed in foreign countries, virtually all of this income is denominated in U.S. dollars. The Company does pay some of its expenses in various foreign currencies. During 2019, 2018 and 2017, $10,527 or 23%, $11,141 or 21%, and $15,143 or 25%, respectively, of the Company’s direct container expenses – owned fleet were paid in up to 20 different foreign currencies. In accordance with its policy, the Company does not h |
Immaterial Reclassification of
Immaterial Reclassification of Prior Period Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Immaterial Reclassification of Prior Period Presentation | (2) Immaterial Reclassification of Prior Period Presentation As part of the preparation of the interim consolidated financial statements during 2019, the Company modified its balance sheet presentation of its container management business segment. Under the Company’s fleet management agreements for managed containers, the Company is responsible for providing the leasing services to the customers and responsible for directing and integrating third-party vendors to fulfill its performance obligations. Therefore, it was determined during 2019 that the accounts receivable and vendor payables arising from direct container operations of the managed containers should be recognized on a gross basis in the Company’s consolidated balance sheets. The Company previously excluded the gross balances of these accounts from the Company’s consolidated balance sheets and recorded amounts due to third-party owners on a net basis in “due to container investors, net” in the consolidated balance sheets. See Note 5 “Managed Container Fleet” and Note 6 “Transactions with Affiliates and Container Investors” for further information. In accordance with FASB Accounting Standards Codification 250, Accounting Changes and Error Corrections The impact of the reclassification of the financial statement presentation in the consolidated balance sheet as of December 31, 2018 are as follows: As of December 31, 2018 As Reported Adjustment As Restated Accounts receivable, net $ 110,222 $ 24,003 $ 134,225 Prepaid expenses and other current assets $ 22,669 $ 470 $ 23,139 Total current assets $ 373,877 $ 24,473 $ 398,350 Total assets $ 4,744,296 $ 24,473 $ 4,768,769 Accounts payable and accrued expenses $ (25,174 ) $ (2,123 ) $ (27,297 ) Due to container investors, net $ (8,322 ) $ (22,350 ) $ (30,672 ) Total current liabilities $ (268,114 ) $ (24,473 ) $ (292,587 ) Total liabilities $ (3,508,305 ) $ (24,473 ) $ (3,532,778 ) The impacts have been reflected throughout the consolidated balance sheets, including the applicable footnotes, as appropriate (see Note 1 “Nature of Business and Summary of Significant Accounting Policies”, Note 5 “Managed Container Fleet”, Note 6 “Transactions with Affiliates and Container Investors” and Note 10 “Segment Information”). |
Insurance Receivable and Impair
Insurance Receivable and Impairment | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Insurance Receivable and Impairment | (3) Insurance Receivable and Impairment In 2019, one of the Company’s customers became insolvent and the total net book value of its owned containers to this insolvent customer was $63,120 recover containers and up to 183 days of lost lease rental income. Based on prior recovery experience, the Company estimated that containers with a book value of $ 9,468 would not be recovered from this insolvent customer. Accordingly, the Company recorded impairment charges of $ 9,059 included in container lessee default expense in the consolidated statements of comprehensive income for the year ended December 31, 2019. An insurance receivable of $ 1,792 , net of insurance deductible was recorded in the prepaid expenses and other current assets in the consolidated balance sheets as of December 31, 2019. The Company also recorded bad debt expense of $ 2,921 in the consolidated statements of comprehensive income to fully reserve for this insolvent customer’s outstanding accounts receivable during the year ended December 31, 2019 . Insurance receivable recorded on the Company’s owned fleet related to this insolvent customer are as follows: Estimated unrecovered containers, net of insurance deductible $ 409 Recovery costs 1,383 Insurance receivable related to this insolvent customer as of December 31, 2019 $ 1,792 In 2018, four of the Company’s customers became insolvent and the total net book value of its owned containers to these insolvent customers were $23,044. The Company recorded impairment charges of $12,543 on the unrecoverable containers for these insolvent customers and container recovery costs of , both included in container lessee default expense container lessee default expense In August 2016, one of the Company’s customers filed for bankruptcy. The Company maintains insurance that covers a portion of the exposure related to the value of containers that are unlikely to be recovered from this customer, the cost to recover containers and up to 183 days of lost lease rental income. The Company entered into a final agreement with the insurance companies on December 31, 2018 and the total remaining payments of $9,814 for the Company’s owned fleet were received in January and early February 2019. Accordingly, the Company recorded a $8,692 gain on insurance recovery and legal settlement in the consolidated statements of comprehensive income during the year ended December 31, 2018, which related to the final insurance settlement for insurable costs including primarily unrecovered containers and incurred container recovery costs, net of the insurance deductible and legal settlement in the consolidated statements of comprehensive income . |
LAPCO Acquisition
LAPCO Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
LAPCO Acquisition | (4) LAPCO Acquisition On December 31, 2019, the Company completed the acquisition of LAPCO, an indirect wholly-owned subsidiary of Trencor Limited The Company determined that the acquisition of LAPCO did not meet the definition of a business in accordance with Topic 805, Business Combinations Asset acquisitions are accounted for by allocating the cost of the acquisition to the individual assets acquired and liabilities assumed on a relative fair value basis. As a result, asset acquisitions do not result in the recognition of goodwill or a bargain purchase gain. When the fair value of the net assets acquired is greater than the purchase consideration, the excess is allocated to the acquired assets on a relative fair value basis. As a result of the LAPCO acquisition, the management agreement between the Company and LAPCO was terminated and effectively settled the pre-existing contractual relationship at acquisition date. Under the terms of the management agreement, the Company previously managed a substantial portion of LAPCO’s container fleet. Because the terms of the pre-existing management agreement were determined to be favorable to the Company compared to current market terms for similar arrangements, a portion of the excess of the fair value of the net assets acquired over the purchase consideration was deemed to be applicable to the effective settlement of the management agreement. Therefore, a gain of $1,823 was recorded on the acquisition date in the consolidated statements of comprehensive income as “gain on settlement of pre-existing management agreement”. As of December 31, 2019, the acquired net assets recorded by the Company consists of cash of $19,975, containers and container-related assets of $167,001 and the remaining consideration was allocated to working capital of $6,767. |
Managed Container Fleet
Managed Container Fleet | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Managed Container Fleet | (5) Managed Container Fleet As part of the Company’s on-going business operation, the Company from time to time purchases containers on behalf of Container Investors. The Company enters into management agreements with the Container Investors whereby the Company, as agent for the Container Investors, purchases and leases out these containers and manages all of the Container Investors’ rights and obligations in respect of such containers and leases. The acquisition of these containers is funded entirely by the Container Investors and all risks and rewards of ownership of these containers vest and remain exclusively with the Container Investors. The Container Investors have no rights or recourse against the Company in the event of physical loss or damage, failure to lease out, any lessee default or any other risk in respect of the containers. The Container Investors pay the Company an acquisition fee for acquiring containers on their behalf at the time of acquisition and a fee for management services, including services associated with ultimately disposing of the containers on behalf of the Container Investors. Lease rental income and expenses from the managed fleet owned by Container Investors are presented on a gross basis. Lease rental income – managed fleet represents rental charges billed to the ultimate lessee for the managed fleet, including charges for handling fees, drop-off charges, pick-up charges, and charges for a damage protection plan that is set forth in the leases. Management fees from non-leasing services are earned for acquiring new managed containers and sales commissions are earned from sales of the managed containers on behalf of the Container Investors, which are generally calculated as a fixed percentage of the cost of the managed containers purchased and the proceeds from the sale of the managed containers, respectively. Acquisition fees from purchases of containers for the managed fleet are deferred and recognized as earned on a straight-line basis over the deemed lease term. As of December 31, 2019 and 2018, deferred revenue from acquisition fees amounted to $3,109 and $4,245, respectively. See Note 1 (e) “Accounting Policies and Recent Accounting Pronouncements – Revenue Recognition” for further information. Containers - December 31, 2018 and Prior Distribution expense to managed fleet container investors represents direct container expenses of the managed containers and the amounts distributed to the Container Investors, reduced by associated lease management fees earned and retained by the Company. Managed containers in the Company’s managed fleet on or before December 31, 2018 are not included in the Company’s container leasing equipment in the Company’s consolidated balance sheet as of December 31, 2019 and 2018. Container Purchases On or After January 1, 2019 Distribution expense to managed fleet container investors represents direct container expenses of the managed containers. From an accounting perspective, in accordance with Topic 842 which is effective January 1, 2019 for the Company and under the above management arrangements, the Company is deemed to control the containers owned by the Container Investors before they are leased out. Furthermore, the deemed leaseback is considered a sales-type lease under Topic 842, with the Company as lessee and the Container Investors as lessors. For accounting purposes, the Company is deemed to own the managed containers purchased by the Company on or after January 1, 2019 for and on behalf of Container Investors, notwithstanding the contractual management relationship which the Company has with the Container Investors. Accordingly, such managed containers are included in the Company’s container leasing equipment in the Company’s consolidated balance sheet as of December 31, 2019 and depreciated using the straight-line method over their estimated useful lives to an estimated dollar residual value per the Company’s depreciation policy (see Note 1 (k) “Accounting Policies and Recent Accounting Pronouncements – Containers”). The purchase consideration paid by the Container Investors for such containers is reported as a deemed financial liability of the Company. Subsequent net operating income distributions made by the Company to the Container Investors are recorded as a reduction to the financial liability and as interest expense using the effective interest method. The net book value for these managed containers and the associated financial liability will reduce over time and will be removed upon container sale, irrespective of the amount realized in such sale. As of December 31, 2019, the Company’s container leasing equipment includes such managed containers in the consolidated balance sheet amounting to a net book value of $16,151 and a deemed financial liability to the Container Investor amounting to $17,449 which was reported as "other liabilities” in the consolidated balance sheet. The Company’s container leasing equipment included in the consolidated balance sheet as of December 31, 2019 and 2018 consisted of the following: 2019 2018 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Containers - owned fleet $ 5,582,986 $ (1,442,986 ) $ 4,140,000 $ 5,456,237 $ (1,322,221 ) $ 4,134,016 Containers - managed fleet 16,332 (181 ) 16,151 — — — Total containers $ 5,599,318 $ (1,443,167 ) $ 4,156,151 $ 5,456,237 $ (1,322,221 ) $ 4,134,016 Total management fee income from the managed fleet, including management fees earned from acquisition fees and sales commissions during 2019, 2018 and 2017 were as follows (also, see Note 6 “Transactions with Affiliates and Container Investors”): 2019 2018 2017 Lease rental income - managed fleet $ 101,901 $ 111,342 $ 104,566 Less: distribution expense to managed fleet container investors (93,858 ) (102,992 ) (96,718 ) Less: depreciation and interest expense on managed containers purchased on or after January 1, 2019 (394 ) — — Management fees from leasing 7,649 8,350 7,848 Management fees from non-leasing services 7,590 8,529 7,146 Total management fees $ 15,239 $ 16,879 $ 14,994 The Company’s consolidated balance sheets also include the accounts receivable from the lessees of the managed fleet which are uncollected lease billings related to the containers managed by the Company for the Container Investors. Amounts billed under leases for the managed fleet (“sub-leases”) are recorded in accounts receivable with a corresponding credit to due to Container Investors. As sub-lessor, accounts receivable from the managed fleet represent receivables from lessees that the Company is required to remit, in terms of the management agreements, to the Container Investors once paid. The Company’s consolidated balance sheets also include the prepaid expenses, accounts payable and accrued expenses and container contracts payable related to the containers managed by the Company for the Container Investors. The following table provides a reconciliation of the accounts receivable, prepaid expenses and other current assets, container contracts payable and accounts payable and accrued expenses from the managed fleet to the total amount as of December 31, 2019 and 2018 in the consolidated balance sheets (also, see Note 6 “Transactions with Affiliates and Container Investors”). Accounts receivable related to the owned fleet pertains to the Company’s uncollected lease billings related to the containers owned by the Company. Prepaid expenses and other current assets and accounts payable and accrued expenses related to the owned fleet represents the Company’s general and administrative costs and operating costs arising from the containers owned by the Company. 2019 2018 Accounts receivable - owned fleet $ 96,158 $ 110,222 Accounts receivable - managed fleet 13,226 24,003 Total accounts receivable $ 109,384 $ 134,225 Prepaid expenses and other current assets - owned fleet $ 14,627 $ 22,669 Prepaid expenses and other current assets - managed fleet 189 470 Total prepaid expenses and other current assets $ 14,816 $ 23,139 Accounts payable and accrued expenses - owned fleet $ 21,451 $ 25,174 Accounts payable and accrued expenses - managed fleet 1,953 2,123 Total accounts payable and accrued expenses $ 23,404 $ 27,297 Container contracts payable - owned fleet $ 9,394 $ 42,710 Container contracts payable - managed fleet — — Total container contracts payable $ 9,394 $ 42,710 |
Transactions with Affiliates an
Transactions with Affiliates and Container Investors | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates and Container Investors | (6) Transactions with Affiliates and Container Investors Due from affiliates, net generally result from cash advances and the payment of affiliated companies’ administrative expenses by the Company on behalf of such affiliates. Balances are generally paid within 30 days. Due from affiliates, net of $1,880 and $1,692, as of December 31, 2019 and 2018, respectively, represents lease rentals on containers collected on behalf of and payable to the Company from the Company’s container manager, net of direct container expenses and management fees, and the Company’s advance of equipment purchases paid on behalf of an affiliated container investor Total fees earned from management of the containers, including acquisition fees and sales commissions during 2019, 2018 and 2017 were as follows: 2019 2018 2017 Fees from affiliated Container Investors $ 3,527 $ 3,575 $ 2,994 Fees from unaffiliated Container Investors 11,374 11,334 10,073 Fees from Container Investors 14,901 14,909 13,067 Other fees 338 1,970 1,927 Total management fees $ 15,239 $ 16,879 $ 14,994 The following table provides a summary of due to container investors, net at December 31, 2019 and 2018: 2019 2018 Affiliated Container Investors $ — $ 5,718 Unaffiliated Container Investors 21,978 24,954 Due to container investors, net $ 21,978 $ 30,672 Accounts receivable - managed fleet $ 13,226 $ 24,003 Prepaid expenses and other current assets - managed fleet 189 470 Accounts payable and accrued expenses - managed fleet (1,953 ) (2,123 ) Container contracts payable - managed fleet - - 11,462 22,350 Distributions due to container investors on lease rentals collected, net of container expenses paid and management fees 10,516 8,322 Due to container investors, net $ 21,978 $ 30,672 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | (7) Leases (a) Lessor The Company’s lease rental income for the year ended December 31, 2019 were as follows: Owned Managed Total Lease rental income - operating leases $ 470,722 $ 96,989 $ 567,711 Interest income on net investment in direct financing and sales-type leases 15,356 — 15,356 Interest income on container leaseback financing receivable 10,313 — 10,313 Variable lease revenue 21,468 4,912 26,380 Total lease rental income $ 517,859 $ 101,901 $ 619,760 For direct financing and sales-type leases, the net selling (loss) gain recognized at lease commencement, representing the difference between the estimated fair value of containers placed on these leases and their net book value, in the amount of $(1,027) and $802 for the years ended December 31, 2019 and 2018, respectively, are included in “gain on sale of owned fleet containers, net” in the consolidated statements of comprehensive income. Operating Leases The following is a schedule, by year, of future minimum lease payments receivable under the long-term leases for the owned and managed container fleet as of December 31, 2019: Owned Managed Total Year ending December 31: 2020 $ 294,320 $ 31,490 $ 325,810 2021 216,480 17,913 234,393 2022 169,623 6,955 176,578 2023 133,225 5,194 138,419 2024 and thereafter 245,960 14,778 260,738 Total future minimum lease payments receivable $ 1,059,608 $ 76,330 $ 1,135,938 See Note 1 (e) “Accounting Policies and Recent Accounting Pronouncements – Revenue Recognition” and Note 5 “Managed Container Fleet” for further information. Container Leaseback Financing Receivable During 2019, the Company purchased containers for $281,445 and leased back the containers to the seller-lessees through a sales-type leaseback arrangement. Under the provisions of Topic 842, these transactions from an accounting perspective are accounted for as financing transactions. The Company recorded a financing receivable from these transactions amounting to $271,658 as of December 31, 2019, which was reported as “container leaseback financing receivable” in the consolidated balance sheets. The Company maintains allowances, if necessary, for doubtful accounts and estimated losses resulting from the inability of its lessees to make required payments under the container leaseback financing receivable (see Note 1 (e) “Accounting Policies and Recent Accounting Pronouncements – Revenue Recognition” for further information). As of December 31, 2019, an allowance for doubtful accounts related to billed amounts was not required on its container leaseback financing receivable and the Company does not have an allowance on its future minimum lease payment receivable under the its container leaseback financing receivable. The following is a schedule, by year, of future minimum payments receivable under the container leaseback financing receivable as of December 31, 2019: Twelve months ending December 31: 2020 $ 36,121 2021 36,022 2022 36,022 2023 36,022 2024 and thereafter 198,027 Total future minimum payments receivable 342,214 Add: residual value of containers 35,703 Less: unearned income (106,259 ) Container leaseback financing receivable (1) $ 271,658 Amounts due within one year 20,547 Amounts due beyond one year 251,111 Container leaseback financing receivable $ 271,658 (1) As of December 31, 2019, two customers represented 82.9% and 17.1% of the Company’s container leaseback financing receivable portfolio. The following table represents the components of the net investment in direct financing and sales-type leases as of December 31, 2019 and 2018: 2019 2018 Future minimum lease payments receivable $ 385,589 $ 196,041 Residual value of containers 11,143 11,393 Less unearned income (101,429 ) (40,374 ) Net investment in direct financing and sales-type leases $ 295,303 $ 167,060 Amounts due within one year $ 40,940 $ 39,270 Amounts due beyond one year 254,363 127,790 Net investment in direct financing and sales-type leases (1) $ 295,303 $ 167,060 (1) As of December 31, 2019, two major customers represented 44.3% and 16.1% of the Company’s direct financing and sales-type leases portfolio. As of December 31, 2018, three major customers represented 20.6%, 17.0% and 11.3% of the Company’s direct financing and sales-type leases portfolio. No other customer represented more than 10% of the Company’s direct financing and sales-type leases portfolio as of December 31, 2019 and 2018 . The Company maintains allowances, if necessary, for doubtful accounts and estimated losses resulting from the inability of its lessees to make required payments under direct financing and sales-type leases (see Note 1 (e) “Accounting Policies and Recent Accounting Pronouncements – Revenue Recognition” for further information). The allowance for doubtful accounts related to billed amounts under direct financing and sales-type leases and included in accounts receivable, net, during the years ended December 31, 2019 and 2018 amounted to $675 and $702, respectively. As of December 31, 2019 and 2018, the Company does not have an allowance on its future minimum lease payment receivable under its direct financing and sale-type leases. The following is a schedule by year of future minimum lease payments receivable under these direct financing and sales-type leases as of December 31, 2019: Year ending December 31: 2020 $ 59,075 2021 62,136 2022 38,680 2023 32,959 2024 and thereafter 192,739 Total future minimum lease payments receivable $ 385,589 (b) Lessee The Company has entered into several operating leases for office space. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company does not recognize a related ROU asset and lease liability for short-term leases having a lease term of twelve months or less (see Note 1 (v) “Accounting Policies and Recent Accounting Pronouncements – Leases”). As of December 31, 2019, operating leases included in ROU lease assets amounted to $11,276, which was reported in “other assets” in the consolidated balance sheets. As of December 31, 2019, total lease liabilities amounted to $13,736, of which amounts due within one year of $1,706 were reported in “other liabilities – current.” Long-term lease obligations that are due beyond one year of $12,030 were reported in “other liabilities – non-current” in the consolidated balance sheets. Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. Lease expense for lease payments is recognized on a straight-line basis over the lease term and is reported in “general and administrative expense” in the consolidated statements of comprehensive income. Rent expense amounted to $2,233, $2,049 and $3,432 during 2019, 2018 and 2017, respectively. Other information related to the Company's operating leases are as follows: 2019 Operating lease cost $ 2,095 Short-term and variable lease cost 138 Total rent expense $ 2,233 Cash paid for amounts included in the measurement of lease liabilities $ 2,098 2019 Weighted-average remaining lease term 5.4 years Weighted-average discount rate 4.17% Future minimum lease payment obligations under the Company’s noncancelable operating leases at December 31, 2019 were as follows: Operating leasing Year ending December 31: 2020 $ 2,232 2021 2,200 2022 2,039 2023 2,103 2024 and thereafter 7,392 Total lease payments 15,966 Less imputed interest (2,230 ) Total operating lease liabilities $ 13,736 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (8) Income Taxes The Company is not subject to taxation in its country of incorporation; however, the Company is subject to taxation in certain other jurisdictions due to the nature of the Company’s operations. The Company estimates its tax liability based upon its understanding of the tax laws of the various countries in which it operates. Income tax expense for 2019, 2018 and 2017 consisted of the following: 2019 2018 2017 Current Bermuda $ — $ — $ — Foreign 499 1,407 2,142 499 1,407 2,142 Deferred Bermuda — — — Foreign 1,449 618 (524 ) 1,449 618 (524 ) $ 1,948 $ 2,025 $ 1,618 The components of income before income taxes and noncontrolling interest were as follows: 2019 2018 2017 Bermuda sources $ — $ — $ — Foreign sources 58,504 56,275 22,360 $ 58,504 $ 56,275 $ 22,360 A reconciliation of the differences between the Bermuda statutory income tax rate and the effective tax rate as provided in the consolidated statements of comprehensive income is as follows: 2019 2018 2017 Bermuda tax rate $ — 0.00 % $ — 0.00 % $ — 0.00 % Foreign tax rate 188 0.32 % (142 ) (0.25 )% (1,297 ) (5.80 )% Tax uncertainties 1,760 3.01 % 2,167 3.85 % 2,915 13.04 % $ 1,948 3.33 % $ 2,025 3.60 % $ 1,618 7.24 % The components of income tax expense and effective tax rate were as follows: 2019 2018 2017 Income before income tax and noncontrolling interests $ 58,504 $ 56,275 $ 22,360 Tax uncertainties $ 1,760 3.01 % $ 2,167 3.85 % $ 2,915 13.04 % Foreign taxes Stock based compensation 405 0.69 % 128 0.23 % (304 ) (1.36 )% Adjustment for prior years 270 0.46 % 367 0.65 % (71 ) (0.32 )% Revaluation of deferred taxes due to TCJA — — — — (2,653 ) (11.86 )% Foreign derived intangible income (77 ) (0.13 )% (199 ) (0.35 )% — — Valuation allowance 315 0.54 % 272 0.48 % 1,166 5.21 % Foreign rate difference (778 ) (1.33 )% (758 ) (1.35 )% 565 2.53 % Other 53 0.09 % 48 0.09 % — — 188 0.32 % (142 ) (0.25 )% (1,297 ) (5.80 )% $ 1,948 3.33 % $ 2,025 3.60 % $ 1,618 7.24 % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are presented below: 2019 2018 Deferred tax assets Net operating loss carryforwards $ 19,410 $ 19,616 Other 1,568 2,173 20,978 21,789 Valuation allowance (net operating loss) (707 ) (992 ) Deferred tax assets 20,271 20,797 Deferred tax liabilities Containers, net 25,975 25,039 Other 697 710 Deferred tax liabilities 26,672 25,749 Net deferred tax liabilities $ 6,401 $ 4,952 In assessing the extent to which deferred tax assets are realizable, the Company’s management considers whether it is more likely than not that the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company’s management considers the projected future reversal of taxable temporary items for making this assessment. Based upon the projections for the reversal of taxable temporary items over the periods in which the deferred tax assets are deductible, the Company’s management believes it is more likely than not the Company will not realize a portion of the benefits of these deductible differences, thus a valuation allowance has been provided. The Company has U.S. federal net operating loss carry-forwards of $108,014 that will begin to expire from December 31, 2020 through December 31, 2037 if not utilized and $20,351 with no expiration date. The Company expects to utilize the net operating loss carry-forwards prior to their expiration, net of the valuation allowance. In the United States, utilization of net operating loss carry-forwards for federal income tax purposes may be subject to a substantial annual limitation if there is an ownership change within the meaning of Section 382 of the Internal Revenue Code. In general, an ownership change within the meaning of Section 382 occurs if a transaction or series of transactions over a three-year The accompanying consolidated financial statements do not reflect the income taxes that would be payable to foreign taxing jurisdictions if the earnings of a group of corporations operating in those jurisdictions were to be transferred out of such jurisdictions, because such earnings are intended to be permanently reinvested in those countries. At December 31, 2019, cumulative earnings of approximately $33,976 would be subject to income taxes of approximately $10,193 if such earnings of foreign corporations were transferred out of such jurisdictions in the form of dividends. The Company’s foreign tax returns, including the United States, State of California, State of New Jersey, State of Texas, Malaysia, Singapore, and United Kingdom, are subject to examination by the various tax authorities. The Company’s foreign tax returns are no longer subject to examinations by taxing authorities for years before 2015, except for its United States and State of California tax returns which are no longer subject to examinations for years before 2011 and 2008, respectively. The U.S. Tax Cuts and Job Act of 2017 (TCJA) was signed into law on December 22, 2017. The TCJA significantly revised the U.S. federal corporate income tax by, among other things, lowering the corporate income tax rate, implementing a territorial tax system, imposing a repatriation tax on earnings of foreign subsidiaries that are deemed to be repatriated to the United States, imposing limitations on the deduction of interest expense and executive compensation, and the creation of the base erosion anti-abuse tax (BEAT), a new minimum tax. The most significant effect of TCJA on the Company was the U.S. federal corporate tax rate reduction from 35% to 21%. A change in tax law was accounted for in the period of enactment, which required re-measurement of all our U.S. deferred income tax asset and liabilities during 2017. As the Company was in an overall net deferred tax liability position, the corporate tax rate reduction resulted in a net tax benefit of $2,653 in 2017, when the deferred tax assets and liabilities were revalued downward. In addition, the Company’s 2017 effective tax rate was favorably affected by 11.9% due to the TCJA. The other significant provisions that became effective in 2018 that may impact the Company’s income taxes are: the limitation on the deduction of interest expense in excess of 30 percent of adjusted taxable income (which is approximately 30 percent of EBITDA through December 31, 2021 and approximately 30 percent of earnings before net interest and taxes thereafter), limitation on utilization of net operating losses generated after fiscal year 2017 to 80 percent of taxable income , lowered tax rate on its foreign-derived intangible income and limitation of deduction for executive compensation . The Company’s income tax provision as of and for the year ended December 31, 201 9 has not been negatively affected by these new provisions under the TCJA. However, based on the Company’s current projection, there could be negative effects in a future year, for example, when the more restrictive limitation on the deduction of interest expense becomes applicable after 2021. The Company will continue to evaluate the impact that the TCJA could have on its future tax expense. A reconciliation of the beginning and ending unrecognized tax benefit amounts for 2019 and 2018 are as follows: Balance at December 31, 2017 $ 16,150 Increases related to prior year tax positions 4 Decreases related to prior year tax positions (2 ) Increases related to current year tax positions 3,131 Lapse of statute of limitations (1,138 ) Balance at December 31, 2018 18,145 Decreases related to prior year tax positions (82 ) Increases related to current year tax positions 2,922 Lapse of statute of limitations (1,343 ) Balance at December 31, 2019 $ 19,642 If the unrecognized tax benefits of $19,642 at December 31, 2019 were recognized, tax benefits in the amount of $19,584 would reduce our annual effective tax rate. The Company believes the total amount of unrecognized tax benefit as of December 31, 2019 will decrease by $1,444 in the next twelve months due to expiration of the statute of limitations, which would reduce our annual effective tax rate. Interest and penalty expense recorded during 2019, 2018 and 2017 amounted to $182, $180 and $181, respectively. Total accrued interest and penalties as of December 31, 2019 and 2018 were $1,470 and $1,288, respectively, and were included in non-current income taxes payable. |
Debt and Derivative Instruments
Debt and Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Derivative Instruments | (9) Debt and Derivative Instruments The following represents the Company’s debt obligations as of December 31, 2019 and 2018: Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable 2019 2018 Outstanding Average Interest Outstanding Average Interest Final Maturity TL Revolving Credit Facility $ 1,280,037 3.29 % $ 1,272,074 4.00 % September 2023 TL 2019 Term Loan 158,371 3.50 % — — December 2026 TMCL II Secured Debt Facility (1) 689,658 3.49 % 654,485 4.36 % July 2026 TMCL V 2017-1 Bonds 316,395 3.91 % 353,884 3.91 % May 2042 TMCL V 2017-2 Bonds 395,836 3.73 % 435,838 3.73 % June 2042 TMCL VI Term Loan 249,421 4.30 % 276,210 4.30 % February 2038 TMCL VII 2018-1 Bonds 227,624 4.14 % 245,399 4.14 % July 2043 TMCL VII 2019-1 Bonds 327,563 4.02 % — — April 2044 TAP Funding Revolving Credit Facility 152,824 3.69 % 171,937 4.41 % December 2021 Total debt obligations $ 3,797,729 $ 3,409,827 Amount due within one year $ 242,433 $ 191,689 Amounts due beyond one year $ 3,555,296 $ 3,218,138 (1) Final maturity of the TMCL II Secured Debt Facility is based on the assumption that the facility will not be extended on its scheduled conversion date. Secured Debt Facilities (a) TMCL II TMCL II has a securitization facility (the “TMCL II Secured Debt Facility”) that provides for an aggregate commitment amount of up to $1,200,000. There is a commitment fee on the unused amount of the total commitment, payable monthly in arrears. TMCL II’s primary ongoing container financing requirements have been funded by commitments under the TMCL II Secured Debt Facility. The advance rates under the TMCL II Secured Debt Facility were 80.0% at both December 31, 2019 and 2018. TMCL II is required to maintain restricted cash balances on deposit in a designated bank account equal to five months of interest expense on the TMCL II Secured Debt Facility. In July 2019, TMCL II entered into an amendment of the TMCL II Secured Debt Facility, which extended the conversion date and final maturity date to July 23, 2022 and July 23, 2026, respectively, and lowered the interest rate to LIBOR plus spread of 1.75%. Under the terms of the TMCL II Secured Debt Facility, the total outstanding principal may not exceed the lesser of the commitment amount and an amount that is calculated based on TMCL II’s book value of equipment, restricted cash, net investment in direct financing and sales-type leases and container leaseback financing receivable as specified in each of the relevant secured debt facility indentures (the “Asset Base”). The total obligations under the TMCL II Secured Debt Facility is secured by a pledge of TMCL II’s assets. As of December 31, 2019, TMCL II Secured Debt Facility’s Asset Base and total assets amounted to $692,483 and $920,170, respectively. Credit Facilities (a) TL TL has a revolving credit facility (the “TL Revolving Credit Facility”) that provides for an aggregate commitment amount of up to $1,500,000 (which includes a $25,000 letter of credit facility). There is a commitment fee on the unused amount of the total commitment, payable quarterly in arrears. The TL Revolving Credit Facility provides for payments of interest only during its term beginning on its inception date through September 2023 when all borrowings are due in full. Interest on the outstanding amount due under the TL Revolving Credit Facility is based either on the base rate for Base Rate loans plus a spread between 1.5% and 2.0% or LIBOR for Eurodollar rate loans plus a spread between 2.0% and 2.5%, as defined in the credit agreement, which varied based on TGH’s leverage. TL’s primary ongoing container financing requirements have been funded by commitments under the TL Revolving Credit Facility. The advance rates under the TL Revolving Credit Facility were 83.0% and 83.5% at December 31, 2019 and 2018, respectively. Interest payments on Base Rate loans and Eurodollar rate loans are payable in arrears on the last day of each calendar month and on the last day of each interest period, respectively. The Company wrote-off $529 of unamortized debt issuance costs in September 2018 related to the amendment of the TL Revolving Credit Facility. TL had another revolving credit facility (the “TL Revolving Credit Facility II”) that provided for an aggregate commitment amount of up to $190,000. The TL Revolving Credit Facility II provided for payments of interest only during its term beginning on its inception date through July 23, 2020, when all borrowings were due in full. In September 2018, TL terminated its TL Revolving Credit Facility II, which would have expired in July 2020, and the unpaid debt amount of $167,000 was fully repaid by proceeds from the TL Revolving Credit Facility. The TL Revolving Credit Facility was secured by segregated pools of TL’s containers and under the terms of the facility, the total outstanding principal may not exceed the lesser of the commitment amount and an amount (the “Asset Base”), which is based on a formula based on TL’s net book value of containers, net investment in direct financing and sales-type leases and container leaseback financing receivable designated to the facility. As of December 31, 2019, TL Revolving Credit Facility’s Asset Base amounted to $1,419,454. TGH acts as an unconditional guarantor of the TL Revolving Credit Facility. The Company had no outstanding letters of credit under the TL Revolving Credit Facility as of December 31, 2019 and 2018. (b) TAP Funding TAP Funding has a credit agreement, that provides for a revolving credit facility with an aggregate commitment amount of up to $190,000 (the “TAP Funding Revolving Credit Facility”). There is a commitment fee on the unused amount of the total commitment, payable monthly in arrears. TAP Funding’s primary ongoing container financing requirements have been funded by commitments under the TAP Funding Revolving Credit Facility. The advance rates under the TAP Funding Revolving Credit Facility were 80.0% at both December 31, 2019 and 2018. TAP Funding is required to maintain restricted cash balances on deposit in a designated bank account equal to five months of interest expense. Interest on the outstanding amount due under the TAP Funding Revolving Credit Facility is based on one-month LIBOR plus 1.95%, payable monthly in arrears. The TAP Funding Revolving Credit Facility is secured by a pledge of TAP Funding’s total assets and under the terms of the TAP Funding Revolving Credit Facility, the total outstanding principal may not exceed the lesser of the commitment amount and an amount (the “Asset Base”), which is based on a formula based on TAP Funding’s net book value of containers and direct financing and sales-type leases. As of December 31, 2019, TAP Funding Revolving Credit Facility’s Asset Base and TAP Funding’s total assets amounted to $157,603 and $204,235, respectively. On February 7, 2020, the Company entered into an amendment of the TAP Funding Revolving Credit Facility (see Note 14 “Subsequent Event” for further information). Term Loan (a) TL On December 18, 2019, TL has completed a $160,000 seven-year TL had a $500,000 five-year In September 2018, TL terminated its TL Term Loan, which would have matured in April 2019, and the unpaid debt amount of $332,000 was fully repaid by proceeds from the TL Revolving Credit Facility. The Company wrote-off $352 of unamortized debt issuance costs in September 2018 (b) TMCL VI TMCL VI has a $300,000 fixed rate term loan (the “TMCL VI Term Loan”) with a lender group comprised of a financial institution and one institutional investor. The facility represents a partially-amortizing term loan based on defined repayment schedules until February 15, 2025 and after that, repayment will be based on available cash. It has a legal final maturity date on February 15, 2038. The proceeds from the TMCL VI Term Loan were primarily used to repay $159,480 and $122,910 of the outstanding principal balance of TMCL II Secured Debt Facility and TL Revolving Credit Facility, respectively. The advance rates under the TMCL VI Term Loan were 77.1% at both December 31, 2019 and 2018. TMCL VI was required to maintain restricted cash balances on deposit in a designated bank account equal to nine months of interest expense on the TMCL VI Term Loan. Under the terms of the TMCL VI Term Loan, the total outstanding principal may not exceed an amount that is based on a formula based on TMCL VI’s book value of equipment, restricted cash and net investment in direct financing and sales-type leases (the “Asset Base”). The total obligations under the TMCL VI Term Loan are secured by a pledge of TMCL VI’s assets. As of December 31, 2019, the TMCL VI Term Loan Asset Base and TMCL VI’s total assets amounted to $252,122 and $352,148, respectively. Bonds Payable (a) TMCL V TMCL V issued the Series 2017-1 Fixed Rate Asset Backed Notes (the “TMCL V 2017-1 Bonds”), $350,000 aggregate Class A principal amount and $70,000 aggregate Class B principal amount of TMCL V 2017-1 Bonds, to qualified institutional investors pursuant to Rule 144A under the Securities Act and to non-U.S. persons in accordance with Regulation S promulgated under the Securities Act. The $420,000 in TMCL V 2017-1 Bonds represent fully amortizing notes payable over a scheduled payment term of 9 years, but not to exceed a maximum payment term of 25 years. The target final payment date and legal final payment date are May 20, 2026 and May 20, 2042, respectively. Both principal and interest incurred are payable monthly in arrears. The advance rates under the TMCL V 2017-1 Bonds were 75.2% at both December 31, 2019 and 2018. TMCL V was required to maintain restricted cash balances on deposit in a designated bank account equal to nine months of interest expense on the TMCL V 2017-1 Bonds. Proceeds from the TMCL V 2017-1 Bonds was used to acquire containers from TMCL III and for general corporate purposes. The TMCL V 2017-1 Bonds are secured by a pledge of TMCL V’s total assets. TMCL V also issued the Series 2017-2 Fixed Rate Asset Backed Notes (the “TMCL V 2017-2 Bonds”), $416,000 aggregate Class A principal amount and $84,000 aggregate Class B principal amount of TMCL V 2017-2 Bonds, to qualified institutional investors pursuant to Rule 144A under the Securities Act and to non-U.S. persons in accordance with Regulation S promulgated under the Securities Act. The $500,000 in TMCL V 2017-2 Bonds represent fully amortizing notes payable over a scheduled payment term of 9 years, but not to exceed a maximum payment term of 25 years. The target final payment date and legal final payment date are June 20, 2026 and June 20, 2042, respectively. Both principal and interest incurred are payable monthly in arrears. The advance rates under the 2017-2 Bonds were 77.6% Under the terms of the TMCL V 2017-1 Bonds and the TMCL V 2017-2 Bonds, the total outstanding principal may not exceed an amount that is based on a formula based on TMCL V’s book value of equipment, restricted cash and net investment in direct financing and sales-type leases as specified in the bond indenture (the “Asset Base”). The total obligations under the TMCL V 2017-1 Bonds and the TMCL V 2017-2 Bonds are secured by a pledge of TMCL V’s assets. As of December 31, 2019, the TMCL V 2017-1 Bonds and the TMCL V 2017-2 Bonds’ Asset Base amounted to $322,401 and $402,722, respectively, and TMCL V’s total assets amounted to $979,498. (b) TMCL VII TMCL VII issued the Series 2018-1 Bonds, $250,000 aggregate Class A principal amount and $9,100 aggregate Class B principal amount of Series 2018-1 Fixed Rate Asset Backed Notes (the “TMCL VII 2018-1 Bonds”) to qualified institutional investors pursuant to Rule 144A under the Securities Act and to non-U.S. persons in accordance with Regulation S promulgated under the Securities Act. The TMCL VII 2018-1 Bonds were issued at 98.82% of par value for the TMCL VII 2018-1 Bonds Class A notes and 98.14% of par value for the TMCL VII 2018-1 Bonds Class B notes, resulting in a total discount of $3,124, which is being accreted to interest expense using the interest rate method over a 7 year term. The $259,100 in TMCL VII 2018-1 Bonds represent partially amortizing notes payable over a scheduled payment term of 7 years, but not to exceed a maximum payment term of 25 years. Both principal and interest incurred were payable monthly in arrears. The anticipated repayment date and legal final payment date was July 2025 and July 2043, respectively. The advance rates under the 2018-1 Bonds was 80.6% and 82.5% at December 31, 2019 and 2018, respectively. TMCL VII was required to maintain restricted cash balances on deposit in a designated bank account equal to nine months of interest expense on the TMCL VII 2018-1 Bonds. Proceeds from the TMCL VII 2018-1 Bonds was primarily used to acquire containers from TL Revolving Credit Facility and TMCL II Secured Debt Facility and for general corporate purposes On April 24, 2019, TMCL VII also issued the Series 2019-1 Fixed Rate Asset Backed Notes (the “TMCL VII 2019-1 Bonds”), $328,900 of aggregate Class A principal amount and $21,100 of aggregate Class B principal amount of TMCL VII 2019-1 Bonds to qualified institutional investors pursuant to Rule 144A under the Securities Act and to non-U.S. persons in accordance with Regulation S promulgated under the Securities Act. The TMCL VII 2019-1 Bonds totaling $350,000 represent partially amortizing notes payable over a scheduled payment term of 7.5 years, but not to exceed a maximum payment term of 25 years. The anticipated repayment date and legal final payment date was October 2026 and April 2044, respectively. The advance rate under the 2019-1 Bonds was 82.6% at December 31, 2019. Under the terms of the TMCL VII 2019-1 Bonds, both principal and interest incurred are payable monthly. Proceeds from the TMCL VII 2019-1 Bonds were primarily used to pay down debt in our secured debt facility and revolving credit facility. The TMCL VII 2019-1 Bonds are secured by a pledge of TMCL VII’s total assets. Under the terms of the TMCL VII 2018-1 Bonds and TMCL 2019-1 Bonds, the total outstanding principal may not exceed an amount that is based on a formula based on TMCL VII ’s book value of equipment, restricted cash and net investment in direct financing and sales-type leases as specified in the bond indenture (the “Asset Base”). The total obligations under the TMCL VII 2018-1 Bonds and TMCL VII 2019-1 Bonds are secured by a pledge of TMCL VII’s assets. As of December 31, 2019, the TMCL VII 2018-1 Bonds and TMCL VII 2019-1 Bonds’ Asset Base amounted to $230,477 and $329,908, respectively, and TMCL VII’s total assets amounted to $713,593. Restrictive Covenants The Company’s debt agreements contain various restrictive financial and other covenants, including limitations on certain liens, indebtedness and investments. • The TL Revolving Credit Facility and TL 2019 Term Loan contain certain restrictive financial covenants on TGH’s leverage ratio, fixed charge coverage ratio and consolidated tangible net worth; and TL’s leverage coverage and interest coverage ratio. • The TMCL II Secured Debt Facility, the TMCL VI Term Loan, the TAP Funding Revolving Credit Facility, the TMCL V 2017-1 Bonds, the TMCL V 2017-2 Bonds, the TMCL VII 2018-1 Bonds and the TMCL VII 2019-1 Bonds contain restrictive covenants on leverage ratio of TGH and net income and debt levels of TGH’s container management subsidiary. • The TMCL II Secured Debt Facility also contain restrictive covenants regarding certain containers sales proceeds ratio. • The TMCL II Secured Debt Facility, the TMCL VI Term Loan, the TAP Funding Revolving Credit Facility, the TMCL V 2017-1 Bonds, the TMCL V 2017-2 Bonds, the TMCL VII 2018-1 Bonds and the TMCL VII 2019-1 Bonds also contain restrictive covenants regarding certain debt service coverage ratios and the average age of the underlying container fleets securing each of these obligations. • The TMCL II Secured Debt Facility, the TMCL VI Term Loan, the TMCL V 2017-1 Bonds, the TMCL V 2017-2 Bonds, the TMCL VII 2018-1 Bonds and the TMCL VII 2019-1 Bonds also contain restrictive covenants on TMCL II, TMCL VI, TMCL V and TMCL VII’s ability to incur other obligations and distribute earnings, respectively. • All of the Company’s debt facilities also contain restrictive covenants on borrowing base minimums. TGH and its subsidiaries were in full compliance with these restrictive covenants at December 31, 2019. The following is a schedule of future scheduled repayments, by year, and borrowing capacities, as of December 31, 2019: Twelve months ending December 31, Available borrowing, Current and Available Borrowing, 2020 2021 2022 2023 2024 and thereafter Total Borrowing as limited by the Borrowing Base as limited by the Borrowing Base TL Revolving Credit Facility $ 5,063 $ 138,229 $ 138,229 $ 1,004,768 $ — $ 1,286,289 $ 133,165 $ 1,419,454 TL 2019 Term Loan 10,523 10,898 11,285 11,686 115,608 160,000 — 160,000 TMCL II Secured Debt Facility 68,459 66,435 60,474 52,086 447,052 694,506 — 694,506 TMCL V 2017-1 Bonds 39,357 52,173 63,220 62,557 101,572 318,879 — 318,879 TMCL V 2017-2 Bonds (1) 43,958 55,259 67,021 80,125 152,584 398,947 — 398,947 TMCL VI Term Loan 25,500 25,500 25,500 25,500 149,400 251,400 — 251,400 TMCL VII 2018-1 Bonds (1) 18,655 18,655 18,655 18,655 157,796 232,416 — 232,416 TMCL VII 2019-1 Bonds (1) 28,000 28,000 28,000 28,000 219,333 331,333 — 331,333 TAP Funding Revolving Credit Facility 11,038 142,487 — — — 153,525 4,078 157,603 Total (2) $ 250,553 $ 537,636 $ 412,384 $ 1,283,377 $ 1,343,345 $ 3,827,295 $ 137,243 $ 3,964,538 ( 1 ) Future scheduled payments for the TMCL V 2017-2 Bonds, TMCL VII 2018-1 Bonds and TMCL VII 2019-1 Bonds exclude an unamortized discount of $45, $2,332 and $101, respectively. ( 2 ) Future scheduled payments for all debts exclude unamortized prepaid debt issuance costs in an aggregate amount of $27,088. Derivative Instruments and Hedging Activities The Company has entered into several derivative agreements with several banks to reduce the impact of changes in interest rates associated with its debt obligations. The following is a summary of the Company’s derivative instruments as of December 31, 2019: Notional Derivative instruments amount Interest rate swap contracts with several banks, with fixed rates between 1.27% and 2.94% per annum, amortizing notional amounts, with termination dates through January 15, 2023, non-designated $ 796,500 Interest rate swap contracts with several banks, with fixed rates between 1.57% and 1.58% per annum, amortizing notional amounts, with termination dates through April 15, 2023, designated 110,000 Interest rate cap contracts with several banks with fixed rates between 3.00% and 5.00% per annum, nonamortizing notional amounts, with termination dates through September 15, 2022, non-designated 124,000 Total notional amount as of December 31, 2019 $ 1,030,500 In December 2019, the Company entered into interest rate swap agreements for a total notional amount of $110,000. These interest rate swaps are designated and qualify as cash flow hedges of interest expense risk. These instruments are considered effective hedges and are recorded using hedge accounting. Under cash flow hedging, the entire gain or loss on the derivative is initially reported as a component of accumulated other comprehensive income. Amounts are deferred in accumulated other comprehensive income and reclassified into earnings in interest expense when the hedged item affects earnings. The Company performs quarterly assessments of hedge effectiveness by verifying and documenting the critical terms of the hedge instrument and determining that forecasted transactions have not changed significantly. All of the Company’s other outstanding interest rate swap and cap agreements as of December 31, 2019 are economic hedges and not designated as cash flow hedges for accounting purposes. The fair value of the interest rate swap and cap agreements not designated as cash flow hedges are measured at each of the balance sheet date and the change in fair value is recorded in the consolidated statements of comprehensive income as unrealized gain (loss) on derivative instruments, net and reclassified to realized gain (loss) on derivative instruments, net as they are realized. The Company’s derivative instruments had a fair value asset and liability of $135 and $13,778 as of December 31, 2019, respectively, and a fair value asset and liability of $5,555 and $3,639 as of December 31, 2018, respectively, which are inclusive of counterparty risk. The counterparties to the Company’s interest rate swap agreements are highly rated financial institutions. In the unlikely event that the counterparties fail to meet the terms of the interest rate swap agreements, the Company’s exposure is limited to the interest rate differential on the notional amount at each monthly settlement period over the life of the agreements. The Company monitors its counterparties’ credit ratings on an on-going basis and does not anticipate any non-performance by the counterparties. The Company does not have any master netting arrangements with its counterparties. The Company’s fair value assets and liabilities for its derivative agreements are included in derivative instruments in the accompanying consolidated balance sheets. The Company expects to reclassify an estimated net gain amount of $210 related to the designated interest rate swap agreements from accumulated other comprehensive income to interest expense in the consolidated statements of comprehensive income over the next twelve months. The following table summarizes the pre-tax impact of derivative instruments on the consolidated statements of comprehensive income during the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 Derivative instruments Financial Statement Caption Non-designated derivative instruments Realized gain (loss) on derivative instruments, net $ 1,939 $ 5,238 $ (1,191 ) Non-designated derivative instruments Unrealized (loss) gain on derivative instruments, net $ (15,442 ) $ (5,790 ) $ 4,094 Designated derivative instruments Other comprehensive loss $ (110 ) $ — $ — Designated derivative instruments Interest and debt income (expense), net $ 7 $ — $ — |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | (10) Segment Information The Company operates in three reportable segments: Container Ownership, Container Management and Container Resale. Prior year amounts have been modified to conform with the 2019 presentation as discussed in Note 1 (u) “Reclassifications and Changes in Presentation”. The following tables show segment information for 2019, 2018 and 2017, reconciled to the Company’s income before income tax and noncontrolling interests as shown in its consolidated statements of comprehensive income: Container Container Container 2019 Ownership Management Resale Other Eliminations Totals Lease rental income - owned fleet $ 516,307 $ 1,552 $ — $ — $ — $ 517,859 Lease rental income - managed fleet — 101,901 — — — 101,901 Lease rental income $ 516,307 $ 103,453 $ — $ — $ — $ 619,760 Management fees - non-leasing from external customers $ 219 $ 1,646 $ 5,725 $ — $ — $ 7,590 Inter-segment management fees $ — $ 48,215 $ 12,323 $ — $ (60,538 ) $ — Trading container margin $ — $ — $ 7,398 $ — $ — $ 7,398 Gain on sale of owned fleet containers, net $ 21,397 $ — $ — $ — $ — $ 21,397 Depreciation expense $ 266,832 $ 916 $ — $ — $ (7,376 ) $ 260,372 Container lessee default expense, net $ 7,867 $ — $ — $ — $ — $ 7,867 Interest expense $ 152,914 $ 271 $ — $ — $ — $ 153,185 Realized gain on derivative instruments, net $ 1,946 $ — $ — $ — $ — $ 1,946 Unrealized loss on derivative instruments, net $ 15,442 $ — $ — $ — $ — $ 15,442 Segment income (loss) before income tax and noncontrolling interests (1) $ 14,296 $ 27,747 $ 21,036 $ (4,089 ) $ (486 ) $ 58,504 Total assets $ 5,101,301 $ 184,215 $ 19,573 $ 7,206 $ (109,678 ) $ 5,202,617 Purchase of containers and fixed assets $ 420,971 $ 12,706 $ — $ — $ — $ 433,677 Payments on container leaseback financing receivable $ 281,445 $ — $ — $ — $ — $ 281,445 Container Container Container 2018 Ownership Management Resale Other Eliminations Totals Lease rental income - owned fleet $ 498,414 $ 2,948 $ — $ — $ — $ 501,362 Lease rental income - managed fleet — 111,342 — — — 111,342 Lease rental income $ 498,414 $ 114,290 $ — $ — $ — $ 612,704 Management fees - non-leasing from external customers $ 235 $ 2,752 $ 5,542 $ — $ — $ 8,529 Inter-segment management fees $ — $ 48,646 $ 12,132 $ — $ (60,778 ) $ — Trading container margin $ — $ — $ 3,450 $ — $ — $ 3,450 Gain on sale of owned fleet containers, net $ 36,071 $ — $ — $ — $ — $ 36,071 Depreciation expense $ 255,442 $ 794 $ — $ — $ (6,736 ) $ 249,500 Container lessee default expense, net $ 17,948 $ — $ — $ — $ — $ 17,948 Interest expense $ 138,427 $ — $ — $ — $ — $ 138,427 Write-off of unamortized deferred debt issuance costs and bond discounts $ 881 $ — $ — $ — $ — $ 881 Realized gain on derivative instruments, net $ 5,238 $ — $ — $ — $ — $ 5,238 Unrealized loss on derivative instruments, net $ 5,790 $ — $ — $ — $ — $ 5,790 Segment income (loss) before income tax and noncontrolling interests (1) $ 26,166 $ 20,322 $ 16,128 $ (4,083 ) $ (2,258 ) $ 56,275 Total assets $ 4,648,938 $ 152,801 $ 45,110 $ 10,653 $ (88,733 ) $ 4,768,769 Purchase of containers and fixed assets $ 765,297 $ 709 $ — $ — $ — $ 766,006 Container Container Container 2017 Ownership Management Resale Other Eliminations Totals Lease rental income - owned fleet $ 442,219 $ 2,669 $ — $ — $ — $ 444,888 Lease rental income - managed fleet — 104,566 — — — 104,566 Lease rental income $ 442,219 $ 107,235 $ — $ — $ — $ 549,454 Management fees - non-leasing from external customers $ 266 $ 2,105 $ 4,775 $ — $ — $ 7,146 Inter-segment management fees $ — $ 39,529 $ 9,477 $ — $ (49,006 ) $ — Trading container margin $ — $ — $ 1,456 $ — $ — $ 1,456 Gain on sale of owned fleet containers, net $ 26,210 $ — $ — $ — $ — $ 26,210 Depreciation expense $ 240,827 $ 776 $ — $ — $ (6,310 ) $ 235,293 Container lessee default expense, net $ 4,605 $ — $ — $ — $ — $ 4,605 Interest expense $ 117,475 $ — $ — $ — $ — $ 117,475 Write-off of unamortized deferred debt issuance costs and bond discounts $ 7,550 $ — $ — $ — $ — $ 7,550 Realized loss on derivative instruments, net $ 1,191 $ — $ — $ — $ — $ 1,191 Unrealized gain on derivative instruments, net $ 4,094 $ — $ — $ — $ — $ 4,094 Segment (loss) income before income tax and noncontrolling interests (1) $ (1,707 ) $ 15,376 $ 10,854 $ (3,568 ) $ 1,405 $ 22,360 Total assets $ 4,316,272 $ 160,899 $ 10,873 $ 6,859 $ (93,651 ) $ 4,401,252 Purchase of containers and fixed assets $ 418,288 $ 934 $ — $ — $ — $ 419,222 (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized loss on derivative instruments, net of $15,442 and $5,790 for the years ended December 31, 2019 and 2018, respectively, and unrealized gain of $4,094 for the year ended December 31, 2017, and write-off of unamortized deferred debt issuance costs and bond discounts of $881 and $7,550 for the years ended December 31, 2018 and 2017, respectively. General and administrative expenses are allocated to the reportable business segments based on direct overhead costs incurred by those segments. Amounts reported in the “Other” column represent activity unrelated to the active reportable business segments. Amounts reported in the “Eliminations” column represent inter-segment management fees between the Container Management and the Container Resale segments and the Container Ownership segment. Geographic Segment Information The Company’s container lessees use containers for their global trade utilizing many worldwide trade routes. The Company earns its revenue from international carriers when the containers are on hire. Substantially all of the Company’s leasing related revenue is denominated in U.S. dollars. As all of the Company’s containers are used internationally, where no single container is domiciled in one particular place for a prolonged period of time, all of the Company’s long-lived assets are considered to be international with no single country of use. The following table represents the geographic allocation of total fleet lease rental income and management fees from non-leasing services during the years ended December 31, 2019, 2018 and 2017 based on customers’ and Container Investors’ primary domicile: Years ended December 31, 2019 Percent of Total 2018 Percent of Total 2017 Percent of Total Lease rental income: Asia $ 329,567 53.2 % $ 319,286 52.1 % $ 280,331 51.0 % Europe 255,495 41.2 % 255,753 41.7 % 232,888 42.4 % North / South America 31,786 5.1 % 34,053 5.6 % 30,480 5.5 % All other international 2,912 0.5 % 3,612 0.6 % 5,755 1.1 % $ 619,760 100.0 % $ 612,704 100.0 % $ 549,454 100.0 % Management fees, non-leasing: Bermuda $ 4,576 60.2 % $ 4,418 51.8 % $ 3,100 43.4 % Europe 2,334 30.8 % 2,089 24.5 % 2,097 29.3 % North / South America 342 4.5 % 1,970 23.1 % 1,928 27.0 % Asia 28 0.4 % 7 0.1 % 4 0.1 % All other international 310 4.1 % 45 0.5 % 17 0.2 % $ 7,590 100.0 % $ 8,529 100.0 % $ 7,146 100.0 % The following table represents the geographic allocation of trading container sales proceeds and gain on sale of owned fleet containers, net during the years ended December 31, 2019, 2018 and 2017 based on the location of sale: Years ended December 31, 2019 Percent of Total 2018 Percent of Total 2017 Percent of Total Trading container sales proceeds: Asia $ 39,519 67.3 % $ 13,117 67.0 % $ 3,349 70.4 % North / South America 12,788 21.8 % 2,893 14.8 % 816 17.2 % Europe 6,411 10.9 % 3,487 17.8 % 593 12.5 % All other international 16 0.0 % 71 0.4 % — 0.0 % $ 58,734 100.0 % $ 19,568 100.0 % $ 4,758 100.0 % Gain on sale of owned fleet containers, net: Asia $ 7,714 36.0 % $ 18,593 51.5 % $ 18,321 69.9 % North / South America 6,809 31.8 % 7,043 19.5 % 5,002 19.1 % Europe 5,577 26.1 % 9,622 26.7 % 2,994 11.4 % Bermuda — 0.0 % — — — — All other international 1,297 6.1 % 813 2.3 % (107 ) (0.4 )% $ 21,397 100.0 % $ 36,071 100.0 % $ 26,210 100.0 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (11) Commitments and Contingencies ( a ) Restricted Cash Restricted interest-bearing cash accounts were established by the Company as additional collateral for outstanding borrowings under certain of the Company’s debt facilities. Restricted cash at December 31, 2019 and 2018 consisted of the following: 2019 2018 Trust accounts $ 12,822 $ 10,139 Other restricted cash accounts 84,531 77,491 Total restricted cash $ 97,353 $ 87,630 Trust accounts: The Company maintains certain interest-bearing bank accounts (“Trust Accounts”) pursuant to certain debt agreements for the deposits of net cash proceeds collected from leasing and containers disposition after certain expenses. The cash in the Trust Accounts can only be used to pay the Company’s debt, interest and other certain related expenses. After such payments, any remaining cash in the Trust Accounts is transferred to certain unrestricted bank accounts of the Company and is included in cash and cash equivalents on the consolidated balance sheets. Other restricted cash accounts: The Company established certain interest-bearing bank accounts pursuant to certain debt agreements to maintain an amount equal to certain outstanding debt balance and a projected interest expense for a specified number of months. ( b ) Container Commitments At December 31, 2019, the Company had commitments to purchase containers to be delivered subsequent to December 31, 2019 in the total amount of $7,835. ( c ) Distribution Expense to Managed Fleet Container I nvestor s The amounts distributed to the Container Investors are variable payments based upon the net operating income for each managed container (see Note 5 “Managed Container Fleet”). There are no future minimum lease payment obligations under the Company’s management agreements. |
Share Option and Restricted Sha
Share Option and Restricted Share Unit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share Option and Restricted Share Unit Plans | (12) Share Option and Restricted Share Unit Plans As of December 31, 2019, the Company maintained one active share option and restricted share unit plan, the 2019 Share Incentive Plan (“2019 Plan”). The 2019 Plan provided for the grant of share options, restricted share units, restricted shares, share appreciation rights and dividend equivalent rights. The 2019 Plan provided for grants of incentive share options only to the Company’s employees or employees of subsidiary of TGH. Awards other than incentive share options could be granted to the Company’s employees, directors and consultants or the employees, directors and consultants of subsidiaries of TGH. On May 23, 2019, TGH’s board of directors approved an amendment and restatement of the 2015 Share Incentive Plan to increase the maximum number of shares available for future issuance by 2,500,000 shares. At December 31, 2019, 2,461,153 shares were available for future issuance under the 2019 Plan. Share options are granted at exercise prices equal to the fair market value of the shares on the grant date. Each employee’s options vest in increments of 25% per year beginning approximately one year after an option’s grant date. Unless terminated pursuant to certain provisions within the share option plans, including discontinuance of employment with the Company, all unexercised options expire ten years from the date of grant. Beginning approximately one year after a restricted share unit’s grant date, each employee’s restricted share units vest in increments of 25% per year. Restricted share units granted to directors fully vest one year after their grant date. The following is a summary of activity in the Company’s 2019 Plan for the years ended December 31, 2019, 2018, and 2017: Restricted share units Weighted average grant date fair value Balances, December 31, 2016 693,903 $ 14.72 Share units granted during the period 289,800 $ 20.82 Share units vested during the period (244,633 ) $ 18.33 Share units forfeited during the period (46,022 ) $ 14.24 Balances, December 31, 2017 693,048 $ 16.03 Share units granted during the period 274,845 $ 11.92 Share units vested during the period (289,685 ) $ 16.15 Share units forfeited during the period (37,458 ) $ 17.27 Balances, December 31, 2018 640,750 $ 14.20 Share units granted during the period 309,192 $ 9.20 Share units vested during the period (281,377 ) $ 13.97 Share units forfeited during the period (10,945 ) $ 14.32 Balances, December 31, 2019 657,620 $ 11.95 Share units outstanding and expected to vest at December 31, 2019 618,867 $ 11.97 Share options (common share equivalents) Weighted average exercise price Balances, December 31, 2016 1,431,813 $ 22.41 Options granted during the period 246,722 $ 22.75 Options exercised during the period (65,468 ) $ 14.67 Options expired during the period (45,638 ) $ 25.55 Options forfeited during the period (42,752 ) $ 16.04 Balances, December 31, 2017 1,524,677 $ 22.88 Options granted during the period 241,500 $ 11.15 Options exercised during the period (15,259 ) $ 8.49 Options expired during the period (9,552 ) $ 25.77 Options forfeited during the period (37,458 ) $ 17.61 Balances, December 31, 2018 1,703,908 $ 21.44 Options granted during the period 250,000 $ 9.14 Options exercised during the period (13,014 ) $ 9.70 Options expired during the period (113,917 ) $ 23.73 Options forfeited during the period (19,312 ) $ 14.08 Balances, December 31, 2019 1,807,665 $ 19.76 Options exercisable at December 31, 2019 1,209,237 $ 23.50 Options vested and expected to vest at December 31, 2019 1,769,705 $ 19.94 As of December 31, 2019, $9,871 of total compensation cost related to non-vested share option and restricted share unit awards not yet recognized is expected to be recognized over a weighted average period of 3 years. The aggregate intrinsic value of all options exercisable and outstanding, which represents the total pre-tax intrinsic value, based on the Company’s closing common share price of $10.71 per share as of December 31, 2019 was $208. The aggregate intrinsic value is calculated as the difference between the exercise prices of the Company’s share options that were in-the-money and the market value of the common shares that would have been issued if those share options were exercised as of December 31, 2019. The aggregate intrinsic value of all options exercised during 2019, 2018 and 2017, based on the closing share price on the date each option was exercised was $4, $83 and $241, respectively. The following table summarizes information about share options exercisable and outstanding at December 31, 2019: Share options exercisable Share options outstanding Number of shares Weighted average exercise Number of shares Weighted average exercise Range of per-share exercise prices: $9.13 - $ - 243,500 $ 9.13 $9.46 1,250 $ 9.46 5,000 $ 9.46 $9.70 202,981 $ 9.70 271,742 $ 9.70 $9.75 1,876 $ 9.75 3,750 $ 9.75 $11.15 59,132 $ 11.15 233,125 $ 11.15 $12.23 7,500 $ 12.23 10,000 $ 12.23 $14.17 200,041 $ 14.17 200,041 $ 14.17 $22.95 107,051 $ 22.95 211,101 $ 22.95 $28.05 - $28.26 196,507 $ 28.12 196,507 $ 28.12 $28.54 - $38.36 432,899 $ 34.31 432,899 $ 34.31 1,209,237 $ 23.50 1,807,665 $ 19.76 The weighted average contractual life of options exercisable and outstanding as of December 31, 2019 was 4.9 years and 4.9 years, respectively. The estimated weighted average grant date fair value of share options granted during 2019, 2018 and 2017 was $4.47, $5.40 and $10.32 per share, respectively, and was estimated using the Black-Scholes option pricing model for the years ended December 31, 2019, 2018 and 2017 with the following assumptions: 2019 2018 2017 Risk-free interest rates 1.7 % 2.9 % 2.2 % Expected terms (in years) 5.5 5.5 5.4 Expected common share price volatilities 52.9 % 49.8 % 47.4 % Expected dividends 0.0 % 0.0 % 0.0 % Expected forfeitures 3.4 % 4.3 % 5.9 % The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected term of the share option life. The expected term is calculated based on historical exercises. The expected common share price volatility is based on the historical average volatility of the Company’s stock over a period approximating the expected term of the options. The dividend yield reflects the estimated future yield on the date of grant. The Company only recognizes expense for share-based awards that are ultimately expected to vest. The forfeiture rate is based on the Company’s estimate of share options that are expected to cancel prior to vesting. |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Share Repurchase Program | (13) Share Repurchase Program In August 2019, the Company’s board of directors approved a share repurchase program of up to $25,000 of the Company’s common shares. Under the program, the Company may purchase its common shares from time to time in the open market, in privately negotiated transactions or such other manner as will comply with applicable laws and regulations. The authorization did not obligate the Company to acquire a specific number of shares during any period, but it may be modified, suspended or terminated at any time at the discretion of the Company’s board of directors. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | (14) Subsequent Event On February 7, 2020, the Company entered into an amendment of the TAP Funding Revolving Credit Facility which decreased the aggregate commitment amount from $190,000 to $155,000, reduced the advance rate from 80% to 78%, and revised certain of the covenants and restrictions. On March 30, 2020, the Company announced that its board of directors had approved an amendment to the Company’s share repurchase program to increase from $25,000 to an aggregate of $50,000 in common shares that may be repurchased under the program (including all common shares repurchased under the program prior to this amendment), commencing on September 3, 2019 up to and including September 1, 2022 (see Note 13 “Share Repurchase Program” for further information). |
Schedule I - Parent Company Inf
Schedule I - Parent Company Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule I - Parent Company Information | TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES SCHEDULE I - CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Parent Company Information Years Ended December 31, 2019, 2018 and 2017 (All currency expressed in United States dollars in thousands) 2019 2018 2017 Operating expenses: General and administrative expense $ 4,089 $ 4,083 $ 3,568 Total operating expenses 4,089 4,083 3,568 Loss from operations (4,089 ) (4,083 ) (3,568 ) Other income: Equity in net income of subsidiaries 60,813 54,461 22,933 Net other income 60,813 54,461 22,933 Income before income tax 56,724 50,378 19,365 Income tax benefit — — — Net income attributable to Textainer Group Holdings Limited common shareholders $ 56,724 $ 50,378 $ 19,365 Net income attributable to Textainer Group Holdings Limited common shareholders per share: Basic $ 0.99 $ 0.88 $ 0.34 Diluted $ 0.99 $ 0.88 $ 0.34 Weighted average shares outstanding (in thousands): Basic 57,349 57,200 56,845 Diluted 57,459 57,487 57,159 Other comprehensive income (loss): Change in derivative instruments designated as cash flow hedges (110 ) — — Reclassification of realized gain on derivative instruments designated as cash flow hedges (7 ) — — Foreign currency translation adjustments 42 (127 ) 207 Comprehensive income attributable to Textainer Group Holdings Limited common shareholders $ 56,649 $ 50,251 $ 19,572 TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES SCHEDULE I - CONDENSED BALANCE SHEETS Parent Company Information December 31, 2019 and 2018 (All currency expressed in United States dollars in thousands) 2019 2018 Assets Current assets: Cash and cash equivalents $ 5,956 $ 9,444 Prepaid expenses and other current assets 310 182 Due from affiliates, net 638 687 Total current assets 6,904 10,313 Investments in subsidiaries (1) 1,253,763 1,198,026 Total assets $ 1,260,667 $ 1,208,339 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable and accrued expenses $ 476 $ 713 Total current liabilities 476 713 Shareholders’ equity: Common shares 583 581 Treasury shares (17,746 ) (9,149 ) Additional paid-in capital 411,407 406,896 Accumulated other comprehensive loss (511 ) (436 ) Retained earnings (1) 866,458 809,734 Total shareholders’ equity 1,260,191 1,207,626 Total liabilities and shareholders’ equity $ 1,260,667 $ 1,208,339 (1) Certain amounts as of December 31, 2018 have been adjusted to defer acquisition fees of the managed fleet as earned over the deemed lease term (see Note 2 “Immaterial Reclassification of Prior Period Presentation”). TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES SCHEDULE I - CONDENSED STATEMENTS OF CASH FLOWS Parent Company Information Years ended December 31, 2019, 2018 and 2017 (All currency expressed in United States dollars in thousands) 2019 2018 2017 Cash flows from operating activities: Net income attributable to Textainer Group Holdings Limited common shareholders $ 56,724 $ 50,378 $ 19,365 Adjustments to reconcile net income to net cash provided by operating activities: Equity in net income of subsidiaries (60,813 ) (54,461 ) (22,933 ) Dividends received from subsidiaries 46,823 — — Share-based compensation 4,388 7,355 6,083 Decrease (increase) in: Prepaid expenses and other current assets (128 ) 34 (43 ) Increase (decrease) in: Accounts payable and accrued expenses (237 ) 145 (50 ) Total adjustments (9,967 ) (46,927 ) (16,943 ) Net cash provided by operating activities 46,757 3,451 2,422 Cash flows from investing activities: (Decrease) increase in investments in subsidiaries, net (41,865 ) 127 (204 ) Net cash (used in) provided by investing activities (41,865 ) 127 (204 ) Cash flows from financing activities: Purchase of treasury shares (8,597 ) — — Issuance of common shares upon exercise of share options 126 130 961 Due to (from) affiliates, net 49 333 (831 ) Net cash (used in) provided by financing activities (8,422 ) 463 130 Effect of exchange rate changes 42 (127 ) 207 Net (decrease) increase in cash and cash equivalents (3,488 ) 3,914 2,555 Cash and cash equivalents, beginning of the year 9,444 5,530 2,975 Cash and cash equivalents, end of the year $ 5,956 $ 9,444 $ 5,530 |
Schedule II Valuation Accounts
Schedule II Valuation Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II Valuation Accounts | TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES Valuation Accounts Years ended December 31, 2019, 2018 and 2017 (All currency expressed in United States dollars in thousands) Balance at Additions Balance at Beginning of Charged to End of Year Expense Deductions Year December 31, 2017 Accounts receivable, allowance for doubtful accounts (1) $ 40,415 $ 1,201 $ (33,984 ) $ 7,632 December 31, 2018 Accounts receivable, allowance for doubtful accounts (1) $ 7,632 $ 3,574 $ (5,477 ) $ 5,729 December 31, 2019 Accounts receivable, allowance for doubtful accounts $ 5,729 $ 2,096 $ (1,526 ) $ 6,299 (1) Amounts as of December 31, 2018 and 2017 have been reclassified to report the gross amounts of accounts receivable arising from the managed fleet instead of the net presentation (see Note 2 “Immaterial Reclassification of Prior Period Presentation”). |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature Of Operations | (a) Nature of Operations Textainer Group Holdings Limited (“TGH”) is incorporated in Bermuda. TGH is the holding company of a group of companies, consisting of TGH and its subsidiaries (collectively, the “Company”), involved in the purchase, management, leasing and resale of a fleet of marine cargo containers. The Company manages and provides administrative support to the affiliated and unaffiliated third-party owners’ (the “Container Investors”) container fleets. The Company conducts its business activities in three main areas: Container Ownership, Container Management and Container Resale. These activities are described below (also see Note 10 “Segment Information”). Container Ownership The Company’s containers consist primarily of standard dry freight containers, but also include refrigerated and other special-purpose containers. These owned containers are financed through retained earnings; revolving credit facilities, secured debt facilities and a term loan provided by banks; bonds payable to investors; and a public offering of TGH’s common shares. Expenses related to lease rental income of the owned fleet primarily include direct container expenses, depreciation expense and interest expense. Container Management The Company manages, on a worldwide basis, a fleet of containers for and on behalf of the Container Investors. All rental operations are conducted worldwide in the name of the Company who, as agent for the Container Investors, acquires and sells containers, enters into leasing agreements and depot service agreements, bills and collects lease rentals from the lessees, disburses funds to depots for container handling, and remits net amounts, less management fees and commissions, to the Container Investors. Fees earned by the Company under the management agreements are typically a percentage of net operating income of each Container Investor’s fleet and consist of fees for leasing services related to the management of the containers, sales commissions and net acquisition fees earned on the acquisition of containers. Lease rental income and expenses arising from the operation of the managed fleet are presented on a gross basis, whereby revenue billed to shipping lines and expenses incurred and distributions to the container investors of the managed fleet are presented in the Company’s consolidated statements of comprehensive income. Accounts receivable and vendor payables arising from direct container operations of the managed containers are presented on a gross basis in the Company’s consolidated balance sheets. See Note 5 “Managed Container Fleet” for information on the managed fleet containers. Container Resale The Company buys and subsequently resells containers (trading containers) from third parties. Container sales revenue represents the proceeds on the sale of containers purchased for resale. Cost of containers sold represents the cost of equipment purchased for resale that were sold as well as the related selling costs. The Company earns sales commissions related to the sale of the containers that it manages. |
Principles of Consolidation and Variable Interest Entity | (b) Principles of Consolidation and Variable Interest Entity The consolidated financial statements of the Company include TGH and all of its subsidiaries in which the Company has a controlling financial interest. All significant intercompany accounts and balances have been eliminated in consolidation. The Company determines whether it has a controlling financial interest in an entity by evaluating whether the entity is a variable interest entity (“VIE”) or a voting interest entity (“VME”). If it is determined that the Company does not have a variable interest in the entity, no further analysis is required, and the Company does not consolidate the entity. TAP Funding On December 20, 2012, the Company’s wholly-owned subsidiary, Textainer Limited (“TL”), purchased 50.1% of the outstanding common shares of TAP Funding Ltd. (“TAP Funding”) (a Bermuda company) from TAP Ltd. (“TAP”). Both before and after this purchase, TAP Funding leases containers to lessees under operating, direct financing and sales-type leases. TAP is governed by members and management agreements and the Company’s wholly-owned subsidiary, Textainer Equipment Management Limited (“TEML”), manages all of TAP Funding’s containers, making day-to-day decisions regarding the marketing, servicing and design of TAP Funding’s leases. TL’s purchase of a majority ownership of TAP Funding’s common shares allowed the Company to increase the size of its owned fleet at an attractive price. Under TAP Funding’s members agreement, TL owns 50.1% and TAP owns 49.9% of the common shares of TAP Funding. As common shareholders, TL has two voting rights and TAP has one voting right of TAP Funding, with the exception of certain matters such as bankruptcy proceedings and the incurrence of debt and mergers and consolidations, which require unanimity. TL also has two seats and TAP has one seat on TAP Funding’s board of directors. In addition, TL has an option to purchase the remaining outstanding common shares of TAP Funding held by TAP during the period beginning January 1, 2023 and through December 31, 2024 for a purchase price equal to the equity carrying value of TAP Funding plus 6% of TAP’s percentage ownership interest in TAP Funding minus the sum of any and all U.S. federal, state and local taxes of any nature that would be recognized by TL if TAP Funding was liquidated by TL immediately after TL purchased its shares. TAP Funding is a VME and the Company consolidates TAP Funding as the Company has a controlling financial interest in TAP Funding, in which TL owns 50% or more voting interest. TAP Funding’s profits and losses are allocated to TL and TAP on the same basis as their ownership percentages. The equity owned by TAP in TAP Funding is shown as a “noncontrolling interest” on the Company’s consolidated balance sheets and the net income (loss) attributable to the noncontrolling interest’s operations is shown as “net (income) loss attributable to the noncontrolling interests” on the Company’s consolidated statements of comprehensive income. TWCL The Company had a joint venture, TW Container Leasing, Ltd. (“TW”) (a Bermuda company), between TL and Wells Fargo Container Corp. (“WFC”). TL owned 25% and WFC owned 75% of the common shares and related voting rights of TW. The purpose of TW was to lease containers to lessees under direct financing leases. In October 2018, TL entered into an agreement to purchase 75% of the total outstanding common shares of TW from WFC for a cash consideration of $29,658. After the acquisition, TW became a wholly-owned subsidiary of TL. The Company accounted for this equity transaction as a reduction in the related noncontrolling interest. In January 2019, the Company dissolved TW Prior to the capital restructuring, the Company had determined that it had a variable interest in TW and that TW was a VIE. The Company consolidated TW as the Company had determined that it was the primary beneficiary of TW by its equity ownership in the entity and by virtue of its role as manager of the vehicle, namely that the Company had the power to direct the activities of TW that most significantly impact TW’s economic performance. After the capital restructuring which was effective on October 1, 2018, TW became a wholly-owned subsidiary of TL, therefore, the Company retained its controlling financial interest. As a result of the capital restructuring, TL acquired the noncontrolling interest (“NCI”) in TW which was reduced by $30,438 and the difference between the carrying value of the NCI and the cash consideration was recognized as an increase in additional paid-in capital (“APIC”) of $ 780 for the year end ed December 31, 2018. After the capital restructuring, there is no noncontrolling interest in TW on the Company’s consolidated balance sheets as of December 31, 2019 and 2018. The TW net income attributable to the noncontrolling interests’ operations for the period ended September 30, 2018, and for the year ended December 31, 2017, are shown as “net income attributable to the noncontrolling interests” on the Company’s consolidated statements of comprehensive income. There is no TW net income attributable Managed Containers The Company enters into container management agreements with Container Investors. The fees earned by the Company for managing container portfolios on behalf of Container Investors are commensurate with the level of effort required to provide those management services and the Company does not have the obligation to absorb losses or the right to receive benefits that may be significant to the Container Investors. As such, the Company is not the primary beneficiary and does not consolidate the Container Investors. Managed containers which are owned by Container Investors are not assets of the Company and are not included in the consolidated financial statements, except for certain managed containers that the Company is deemed to own with associated container leaseback financial liability of the Company in accordance with Topic 842, Leases Owned Containers The majority of the container equipment included in the accompanying consolidated financial statements is owned by TL, Textainer Marine Containers II Limited (“TMCL II”), Textainer Marine Containers V Limited (“TMCL V”), Textainer Marine Containers VI Limited (“TMCL VI”) and Textainer Marine Containers VII Limited (“TMCL VII”), all Bermuda companies and all of which were wholly-owned subsidiaries of the Company as of December 31, 2019 and 2018. On December 31, 2019, Leased Assets Pool Company Limited (“LAPCO”) became a wholly-owned subsidiary of the Company (see Note 4 “LAPCO Acquisition” for further discussion). All owned containers are pledged as collateral for debt as of December 31, 2019 and 2018. |
Cash and Cash Equivalents and Restricted Cash | (c) Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents are comprised of interest-bearing deposits or money market securities with original maturities of three months or less. The Company maintains cash and cash equivalents and restricted cash (see Note 11 “Commitments and Contingencies—Restricted Cash”) with various financial institutions. These financial institutions are located in Bermuda, Canada, Hong Kong, Malaysia, Singapore, the United Kingdom and the United States. A significant portion of the Company’s cash and cash equivalents and restricted cash is maintained with a small number of banks and, accordingly, the Company is exposed to the credit risk of these counterparties in respect of the Company’s cash and cash equivalents and restricted cash. Furthermore, the deposits maintained at some of these financial institutions exceed the amount of insurance provided on the deposits. Restricted cash is excluded from cash and cash equivalents and is included in long-term assets reported within the consolidated balance sheets. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the amounts shown in the consolidated statements of cash flows: 2019 2018 2017 Cash and cash equivalents $ 180,552 $ 137,298 $ 137,894 Restricted cash included in long-term assets 97,353 87,630 99,675 Cash, cash equivalents and restricted cash, end of period $ 277,905 $ 224,928 $ 237,569 |
Intangible Assets | (d) Intangible Assets Intangible assets, consisting primarily of exclusive rights to manage container fleets, are amortized over the expected life of the contracts based on forecasted income to the Company. The contract terms range from 11 to 13 years. The Company reviews its intangible assets for impairment if events and circumstances indicate that the carrying amount of the intangible assets may not be recoverable. The Company compares the carrying value of the intangible assets to expected future undiscounted cash flows for the purpose of assessing the recoverability of the recorded amounts. If the carrying amount exceeds expected undiscounted cash flows, the intangible assets shall be reduced to their fair value. The Company recorded a write-off of intangible assets amounting to $2 and $835 during the years ended December 31, 2019 and 2018, respectively, for the management rights relinquished relating to the purchase of containers previously managed for a container investor. As of December 31, 2019, the aggregate future amortization of intangible assets of $5,291 is expected to amortize through year 2021. |
Revenue Recognition | (e) Revenue Recognition The components of the Company’s revenue as presented in the consolidated statements of comprehensive income and in Note 10 “Segment Information” are as follows: Lease Rental Income Lease rental income arises principally from leasing containers to various international shipping lines and includes all rental charges billed to the lessees. Lease rental income - owned fleet comprises rental income for the container fleet owned by the Company. Lease rental income - managed fleet comprises rental income for the container fleet owned by the Container Investors. For lease accounting purposes, the management agreements with these Container Investors are deemed to convey to the Company the right to control the use of the managed containers and are therefore accounted for as “lease rental income - managed fleet” as reported in the consolidated statements of comprehensive income (see Note 5 “Managed Container Fleet” for further information). Revenue is recorded when earned according to the terms of the container rental contracts with customers. Revenue is earned and recognized evenly over the period that the equipment is on lease. These contracts are typically for terms of five or more years and are generally classified as operating leases. Where minimum lease payments vary over the lease term, revenue is recognized on a straight-line basis over the term of the lease. Lease rental income comprises daily per diem rental charges due under the lease agreements, together with payments for other charges set forth in the leases, such as handling fees, drop-off charges, pick-up charges, and charges for a damage protection plan. Under long-term lease agreements, containers are usually leased from the Company for periods of five or more years. Under master lease agreements, the lessee is not committed to leasing a minimum number of containers from the Company during the lease term and may generally return the containers to the Company at any time, subject to certain restrictions in the lease agreement. Under long-term lease and master lease agreements, revenue is earned and recognized evenly over the period that the equipment is on lease. Under direct financing and sales-type leases, the containers are usually leased from the Company for the remainder of the container’s useful life and ordinarily provide lessees with a right to purchase the subject containers for a nominal amount at the end of the lease term. Finance lease income is recognized using the effective interest method, which generates a constant rate of interest over the period of the lease. Under sales-type leaseback arrangements that are accounted for as financing transactions, payments made by the customers are recorded as a reduction to the container leaseback financing receivable and as interest income. Interest income is recognized using the effective interest method, which generates a constant rate of interest over the period of the arrangement. The Company’s container leases generally do not include step-rent provisions, nor do they depend on indices or rates. The Company recognizes revenue on container leases that include lease concessions in the form of free-rent periods using the straight-line method over the minimum terms of the leases. Management Fees - Non-leasing Under the Company’s management service agreements with Container Investors, fees are earned for the acquisition and sale of containers under management (see Note 5 “Managed Container Fleet” for further information). Acquisition fees from purchases of containers for managed fleet are deferred and recognized as earned on a straight-line basis over the deemed lease term. Trading Container Margin The Company’s trading container sales proceeds arise from the resale of new and used containers to a wide variety of buyers. The related expenses represent the cost of trading containers sold as well as other selling costs that are recognized as incurred. Revenue Gain on sale of owned fleet containers, net The Company also generally sells containers at the end of their useful lives or when it is financially attractive to do so. The gain on sale of owned fleet containers is the excess of the sale price over the carrying value for these units at the time of sale. Revenue is recorded when control of the containers is transferred to the customer, which typically occurs upon delivery to, or pick-up by, the customer and when collectability is reasonably assured. Gain on sale of owned fleet containers, net, also includes gains (losses) recognized at the inception of sales-type leases of our owned fleet, representing the excess (deficiency) of the estimated fair value of containers placed on sales-type leases over (below) their book value. Allowance for Doubtful Accounts The Company maintains detailed credit records about its container lessees. The Company’s credit committee sets different maximum exposure limits for its container lessees. The Company uses various credit criteria to set maximum exposure limits rather than a standardized internal credit rating. Credit criteria used by the Company to set maximum exposure limits may include, but are not limited to, container lessee trade route, country, social and political climate, assessments of net worth, asset ownership, bank and trade credit references, credit bureau reports, operational history and financial strength. The Company monitors its container lessees’ performance and its lease exposures on an ongoing basis, and its credit management processes are aided by the long payment experience the Company has had with most of its container lessees and the Company’s broad network of long-standing relationships in the shipping industry that provide the Company current information about its container lessees. The Company maintains allowances , if necessary, for doubtful accounts and estimated losses resulting from the inability of its lessees to make required payments under operating leases, container leaseback financing receivable, and direct financing and sales-type leases . These allowances are based on an ongoing review of the credit worthiness, but not limited to, each lessee’s payment history, management’s current assessment of the financial condition of the Company’s lessees , their ability to make their required payments and the recoverability . If the financial condition of the Company’s lessees deteriorates, resulting in an impairment of their ability to make payments, additional allowances may be required. Accounts receivables are generally written off after an analysis is completed which indicates that collection of the full balance is remote. Changes in economic conditions or other events may necessitate additions or deductions to the allowance for doubtful accounts. The allowance is intended to provide for losses inherent in the owned and managed fleet’s accounts receivable and requires the application of estimates and judgments as to the outcome of collection efforts and the realization of collateral, among other things. |
Direct Container Expenses – Owned Fleet | (f) Direct Container Expenses – Owned Fleet Direct container expense – owned fleet represents the operating costs arising from the containers owned by the Company and includes storage, handling, maintenance and repair, repositioning, agent, and insurance expense. These costs are recognized when incurred. |
Distribution Expense to Managed Fleet Container Investors | ( g ) Distribution Expense to Managed Fleet Container Investors Our distribution amounts to Container Investors for the managed fleet includes the net operating income of each Container Investor’s fleet, reduced by associated lease management fees earned and retained by the Company. This amount is also reduced by expenses related to the operation of the managed containers which are presented on a gross basis in the consolidated statements of comprehensive income. Expenses related to the operation of the managed containers such as storage, handling, repairs, repositioning, agent, insurance expense and general and administrative expenses are recognized when incurred. |
Trading Containers and Containers Held for Resale | ( h ) Trading Containers and Containers Held for Resale The Company, through one or more of its subsidiaries, buys trading containers for resale, which are valued at the lower of cost or fair value. The cost of trading containers sold is specifically identified. In addition, containers identified as being available for sale are valued at the lower of carrying value or fair value, less cost to sell. The fair value is estimated based on recent gross sales proceeds for sales of similar containers. Trading containers and containers held for resale are not subject to depreciation. |
Foreign Currencies | ( i ) Foreign Currencies A functional currency is determined for each of the Company’s entities based on the currency of the primary economic environment in which the entity operates. The Company’s functional currency is the U.S. dollar, excluding its foreign subsidiaries Textainer Equipment Management (United Kingdom) Limited and Textainer Equipment Management (Singapore) Pte Ltd. Assets and liabilities denominated in a currency other than the entity’s functional currency are re-measured into its functional currency at the balance sheet date with a gain or loss recognized in current year net income. Foreign currency exchange gains or losses that arise from exchange rate changes on transactions denominated in a foreign currency are recognized in net income as incurred. Foreign currency exchange losses, reported in “direct container expense – owned fleet” in the consolidated statements of comprehensive income were $393, $1,085, and $156 for the years ended December 31, 2019, 2018 and 2017, respectively. For consolidation purposes, the financial statements are translated into U.S. dollars using the current exchange rate for the assets and liabilities and a weighted average exchange rate for the revenues and expenses recorded during the year with any translation adjustment shown as an element of accumulated other comprehensive income. |
Fixed Assets | (j) Fixed Assets Fixed assets are recorded at cost and depreciated on a straight-line basis over the estimated useful lives of such property, furniture and equipment, ranging from three to seven years. Expenditures for maintenance and repairs are expensed as they are incurred. |
Containers | ( k ) Containers Capitalized container costs include the container cost payable to the manufacturer and the associated transportation costs incurred in moving the Company’s containers from the manufacturer to the containers’ first destined port. Containers are depreciated using the straight-line method over their estimated useful lives to an estimated dollar residual value. Used containers are depreciated based upon their remaining useful lives at the date of acquisition to an estimated dollar residual value. The Company evaluates the estimated residual values and remaining estimated useful lives on a regular basis to determine whether a change in its estimates of useful lives and residual values is warranted. The Company completed its annual depreciation policy review and concluded no change was necessary during the year ended December 31, 2019. The Company estimates the useful lives and residual values of its containers to be as follows: As of December 31, 2019 As of December 31, 2018 Estimated Residual Estimated Residual life (years) Value life (years) Value Dry containers other than open top and flat rack containers: 20' 13 $ 1,000 13 $ 1,000 40' 14 $ 1,200 14 $ 1,200 40' high cube 13 $ 1,400 13 $ 1,350 to $1,400 45' high cube 13 $ 1,500 13 $ 1,500 Refrigerated containers: 20' 12 $ 2,750 12 $ 2,750 20' high cube 12 $ 2,049 12 $ 2,049 40' high cube 12 $ 4,000 12 $ 4,000 to $4,500 Open top and flat rack containers: 20' folding flat rack 15 $ 1,300 15 $ 1,300 40' folding flat rack 16 $ 1,700 16 $ 1,700 20' open top 15 $ 1,500 15 $ 1,500 40' open top 14 $ 2,500 14 $ 2,500 Tank containers 20 10% of cost 20 10% of cost The cost, accumulated depreciation and net book value of the Company’s container leasing equipment by equipment type as of December 31, 2019 and 2018 were as follows: 2019 2018 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Dry containers other than open top and flat rack containers: 20' $ 1,627,878 $ (396,247 ) $ 1,231,631 $ 1,632,927 $ (381,929 ) $ 1,250,998 40' 167,011 (58,852 ) 108,159 191,354 (69,463 ) 121,891 40' high cube 2,510,937 (592,374 ) 1,918,563 2,376,975 (540,349 ) 1,836,626 45' high cube 28,670 (11,488 ) 17,182 29,305 (10,034 ) 19,271 Refrigerated containers: 20' 20,484 (7,258 ) 13,226 20,883 (6,153 ) 14,730 20' high cube 5,139 (3,090 ) 2,049 5,148 (2,714 ) 2,434 40' high cube 1,052,707 (338,068 ) 714,639 1,030,078 (279,661 ) 750,417 Open top and flat rack containers: 20' folding flat 17,617 (4,538 ) 13,079 16,641 (4,068 ) 12,573 40' folding flat 51,152 (17,278 ) 33,874 46,182 (16,052 ) 30,130 20' open top 13,259 (1,625 ) 11,634 13,152 (1,419 ) 11,733 40' open top 23,313 (4,351 ) 18,962 27,629 (5,086 ) 22,543 Tank containers 81,151 (7,998 ) 73,153 65,963 (5,293 ) 60,670 $ 5,599,318 $ (1,443,167 ) $ 4,156,151 $ 5,456,237 $ (1,322,221 ) $ 4,134,016 See Note 5 “Managed Container Fleet” for information on the managed fleet containers included above and in the Company’s consolidated balance sheet effective January 1, 2019. Impairment of Container Rental Equipment The Company reviews its containers for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The Company compares the carrying value of the containers to the expected future undiscounted cash flows for the purpose of assessing the recoverability of the recorded amounts. If the carrying value exceeds expected future undiscounted cash flows, the assets are reduced to fair value. There was no such impairment on the Company’s leasing equipment for the years ended December 31, 2019, 2018 and 2017. Write-Off of Container Rental Equipment due to Lessees in Default The Company evaluates the recoverability of the recorded amounts of containers that are unlikely to be recovered from lessees in default. The Company recorded impairment charges during the years ended December 31, 2019, 2018 and 2017 of $7,179, $12,980 and $3,822, respectively, to write-off containers that were unlikely to be recovered from lessees in default, net of gains associated with recoveries on containers previously estimated as lost with lessees in default. These amounts are recorded in the consolidated statements of comprehensive income as “container lessee default expense, net”. Impairment of Containers Held for Sale Containers identified as being available for sale are valued at the lower of carrying value or fair value, less costs to sell. The Company records impairment to write-down the value of containers held for sale to their estimated fair value less cost to sell. The fair value was estimated based on recent gross sales proceeds for sales of similar containers. When containers are retired or otherwise sold, the cost and related accumulated depreciation are removed, and any resulting gain or loss is recognized. Any subsequent increase in fair value less cost to sell is recognized as a reversal of container impairment but not in excess of the cumulative loss previously recognized. During the years ended December 31, 2019, 2018 and 2017, the Company recorded container impairments of $14,238, $13,795 and $4,250, respectively, to write down the value of containers held for sale to their estimated fair value less cost to sell, net of reversals of previously recorded impairments on containers held for sale due to rising used container prices, and was included in “depreciation expense” in the consolidated statements of comprehensive income. During the years ended December 31, 2019, 2018 and 2017, the Company recorded the following net gain on sale of containers, included in “gain on sale of owned fleet containers, net” in the consolidated statements of comprehensive income: 2019 2018 2017 Units Amount Units Amount Units Amount Gain on sale of previously written down owned fleet containers, net 52,319 $ 6,665 28,291 $ 14,563 56,862 $ 18,662 Gain on sale of owned fleet containers not written down, net 52,126 14,732 79,119 21,508 55,505 7,548 Gain on sale of owned fleet containers, net 104,445 $ 21,397 107,410 $ 36,071 112,367 $ 26,210 |
Income Taxes | ( l ) Income Taxes The Company uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded when the realization of a deferred tax asset is deemed to be unlikely. The Company also accounts for income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in the recognition or measurement are reflected in the period in which the change in judgment occurs. If there are findings in future regulatory examinations of the Company’s tax returns, those findings may result in an adjustment to income tax expense. The Company records interest and penalties related to unrecognized tax benefits in income tax expense. |
Debt Issuance Costs | ( m ) Debt Issuance Costs The Company capitalizes costs directly associated with the issuance or modification of its debt and the balance of the debt issuance costs, net of amortization, are netted against the debt recorded in the consolidated balance sheets. Debt issuance costs are amortized using the interest rate method and the straight-line method over the general terms of the related fixed principal payment debt and the related revolving debt facilities, respectively, and the amortization is recorded as “interest expense” in the consolidated statements of comprehensive income. In 2019, 2018 and 2017, debt issuance costs of $9,417, $10,285 and $27,702, respectively, were capitalized and amortization of debt issuance costs of $7,369, $8,400 and $13,201, respectively, were recorded in interest expense. When the Company’s debt is modified or terminated, any unamortized debt issuance costs related to a decrease in borrowing capacity with any of the Company’s lenders is immediately written-off and recorded in write-off of unamortized deferred debt issuance costs and bond discounts. In 2018, write-off of unamortized deferred debt issuance costs and bond discounts included $529 and $352 of write-offs of unamortized debt issuance costs related to the amendment of the TL Revolving Credit Facility and the termination of the TL Term Loan, respectively, (see Note 9 “Debt and Derivative Instruments”). In 2017, write-off of unamortized deferred debt issuance costs and bond discounts included $ 238 , $ 6,516 and $ 84 of write-offs of unamortized debt issuance costs related to the amendment of TMCL II’s S ecured D ebt F acility, the redemption of TMCL III’s 2013-1 Bonds, 2014-1 Bonds, the termination of TMCL III’s 2017-A Notes and the amendment of TAP Funding’s S ecured D ebt F acility, respectively, (see Note 9 “Debt and Derivative Instruments”). No unamortized debt issuance costs were written-off during the year ended December 31, 201 9 . |
Concentrations | ( n ) Concentrations Although substantially all of the Company’s income from operations is derived from assets employed in foreign countries, virtually all of this income is denominated in U.S. dollars. The Company does pay some of its expenses in various foreign currencies. During 2019, 2018 and 2017, $10,527 or 23%, $11,141 or 21%, and $15,143 or 25%, respectively, of the Company’s direct container expenses – owned fleet were paid in up to 20 different foreign currencies. In accordance with its policy, the Company does not hedge these container expenses as there are no significant payments made in any one foreign currency. The Company’s customers are mainly international shipping lines, which transport goods on international trade routes. Once the containers are on-hire with a lessee, the Company does not track their location. The domicile of the lessee is not indicative of where the lessee is transporting the containers. The Company’s business risk in its foreign concentrations lies with the creditworthiness of the lessees rather than the geographic location of the containers or the domicile of the lessees. Except for the lessees noted in the tables below, no other single lessee made up greater than 10% of the Company’s lease rental income from its owned fleet during the years ended December 31, 2019, 2018 and 2017, as well, there is no other single lessee that accounted for more than 10% of the Company’s gross accounts receivable from its owned fleet as of December 31, 2019 and 2018: Lease Rental Income - owned fleet 2019 2018 2017 Customer A 15.4 % 14.0 % 14.4 % Customer B 13.3 % 13.4 % 13.6 % Gross Accounts Receivable - owned fleet 2019 2018 Customer A 17.1 % 10.7 % Customer B 11.2 % 21.3 % Total fleet lease rental income, as reported in the consolidated statements of comprehensive income, comprises revenue earned from leases on containers in the Company’s total fleet, including revenue earned from leases on containers in its managed fleet. Except for the lessees noted in the table below, no other single lessee accounted for more than 10% of the Company’s total fleet lease rental income in 2019, 2018 and 2017, as well, there is no other single lessee that accounted for more than 10% of the Company’s gross accounts receivable from its total fleet as of December 31, 2019 and 2018: Lease Rental Income - total fleet 2019 2018 2017 Customer A 14.8 % 13.8 % 14.8 % Customer B 13.5 % 13.7 % 14.3 % Gross Accounts Receivable - total fleet 2019 2018 Customer A 16.6 % 10.4 % Customer B 12.0 % 20.6 % The Company currently has containers on-hire to approximately customers. The Company’s customers are mainly international shipping lines, but the Company also leases containers to freight forwarding companies and the U.S. M ilitary. The Company’s five largest container lessees accounted for approximately %, % and % of the Company’s total fleet leasing billings in 201 9 , 201 8 and 201 7 , respectively. During 201 9 , 201 8 and 201 7 , revenue from the Company’s 20 largest container lessees by lease billings represented %, % and % of the Company’s total fleet container lease billings, respectively. A default by any of these major customers could have a material adverse impact on the Company’s business, results from operations and financial condition. As of December 31, 2019, and 2018, approximately 95.6% and 94.9%, respectively, of the Company’ gross accounts receivable for its total fleet were from container lessees and customers outside of the U.S. As of December 31, 2019 and 2018, approximately 97.5% and 98.4%, respectively, of the Company’s gross finance lease receivables for its total fleet were from container lessees and customers outside of the U.S. Except for the countries outside of the U.S. noted in the table below, customers in no other single country made up greater than 10% of the Company’s total fleet container lease billings during 2019, 2018 and 2017. Country 2019 2018 2017 Taiwan 15.5 % 14.6 % 13.9 % People's Republic of China 14.1 % 15.0 % 14.4 % France 14.0 % 13.8 % 14.4 % Switzerland 13.3 % 14.1 % 15.1 % Singapore 11.1 % 10.5 % 10.9 % |
Derivative Instruments and Hedging | ( o ) Derivative Instruments and Hedging The Company has entered into various interest rate swap and cap agreements to mitigate its exposure associated with its variable rate debt. The Company records derivative instruments on its balance sheet at fair value and establishes criteria for both the designation and effectiveness of hedging activities. The swap agreements involve payments by the Company to counterparties at fixed rates in return for receipts based upon variable rates indexed to the London Inter Bank Offered Rate (“LIBOR”). Derivative instruments are designated or non-designated for hedge accounting purposes. The fair value of the derivative instruments is measured at each balance sheet date and is reflected on a gross basis on the consolidated balance sheets. See Note 9 Designated Derivative Instruments If a derivative meets the definition of a cash flow hedge and is so designated, changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive income, net of a provision for income taxes. Changes in the fair value of these derivatives are subsequently reclassified into earnings in the period that the hedged transaction affects earnings. As of December 31, 2019, the Company has designated interest rate swap agreements for a total notional amount of $110,000 as a cash flow hedge for accounting purposes. The change in fair value of cash flow hedging instruments during 2019 of a $110 loss was recorded on the consolidated balance sheets in “accumulated other comprehensive income” and $7 gain was reclassified to “interest expense, net” when realized. As of December 31, 2018, and 2017, none of the derivative instruments are designated by the Company for hedge accounting. Non-Designated Derivative Instruments For derivative instruments that do not meet the criteria for hedge accounting, or contracts for which the Company has not elected hedge accounting, the changes in the fair value are recognized in earnings during the period of change. As of December 31, 2019 and 2018, the Company has non-designated interest rate swap and cap agreements for a total notional amount of $920,500 and $1,227,969, respectively. The fair value of the non-designated derivative instruments is measured at each balance sheet date and the change in fair value during 2019, 2018 and 2017 of $ (15,442) , $ (5,790) and $ 4,094 , respectively, was recorded in the consolidated statements of comprehensive income as “ unrealized (loss) gain on derivative instruments , net. ” The differentials between the fixed and variable rate payments under these agreements are recognized in “realized gain (loss) on derivative instruments , net” in the consolidated statements of comprehensive income when realized. |
Share Options and Restricted Share Units | ( p ) Share Options and Restricted Share Units The Company estimates the fair value of all employee share options awarded under its 2019 Share Incentive Plan (the “2019 Plan”) on the grant date. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s consolidated statements of comprehensive income as part of “general and administrative expenses”. The Company uses the Black-Scholes-Merton (“Black-Scholes”) option-pricing model to determine the estimated fair value for employee share option awards. The Company uses the fair market value of the Company’s common shares on the grant date, discounted for estimated dividends that will not be received by the employees during the vesting period, for determining the estimated fair value for employee restricted share units. Compensation expense for employee share awards is recognized on a straight-line basis over the vesting period of the award. Share-based compensation expense of $4,388, $7,355 and $6,083 was recorded during 2019, 2018 and 2017, respectively, for share options and restricted share units awarded to employees under the 2019 Plan. Share-based compensation expense of $3,780, $6,746 and $5,499 was presented as a part of general and administrative expenses, and the remaining balance was presented as a part of direct container expenses – owned fleet |
Comprehensive Income | ( q ) Comprehensive Income The Company discloses the effect of its foreign currency translation adjustment, change in fair value of cash flow hedging derivative instruments, and reclassification of realized gain or loss on cash flow hedging instruments as components of “other comprehensive income” in the Company’s consolidated statements of comprehensive income. |
Estimates | ( r ) Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s management evaluates its estimates on an ongoing basis, including those related to the container rental equipment, intangible assets, accounts receivable, income taxes and accruals. These estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments regarding the carrying values of assets and liabilities. Actual results could differ from those estimates under different assumptions or conditions. |
Net Income Attributable to Textainer Group Holdings Limited Common Shareholders Per Share | ( s ) Net Income Attributable to Textainer Group Holdings Limited Common Shareholders Per Share Basic earnings per share (“EPS”) is computed by dividing net income attributable to Textainer Group Holdings Limited common shareholders by the weighted average number of shares outstanding during the applicable period. Diluted EPS reflects the potential dilution that could occur if all outstanding share options were exercised for, and all outstanding restricted share units were converted into, common shares. Potentially dilutive share options and restricted share units that were anti-dilutive under the treasury stock method were excluded from the computation of diluted EPS. A reconciliation of the numerator and denominator of basic EPS with that of diluted EPS during 201 9 , 201 8 and 201 7 is presented as follows: Share amounts in thousands 2019 2018 2017 Numerator: Net income attributable to Textainer Group Holdings Limited common shareholders $ 56,724 $ 50,378 $ 19,365 Denominator: Weighted average common shares outstanding-- basic 57,349 57,200 56,845 Dilutive share options and restricted share units 110 287 314 Weighted average common shares outstanding-- diluted 57,459 57,487 57,159 Net income attributable to Textainer Group Holdings Limited common shareholders per common share Basic $ 0.99 $ 0.88 $ 0.34 Diluted $ 0.99 $ 0.88 $ 0.34 Share options and restricted share units, excluded from the computation of diluted EPS because they were anti-dilutive 1,805 1,232 1,164 |
Fair Value Measurements | ( t ) Fair Value Measurements Fair value represents the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date. The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those levels: • Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices which are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. Fair Value of Derivative Instruments The Company has utilized the income approach to measure the fair value of its notional amount of derivative instruments using observable (Level 2) market inputs. This approach represents the present value of future cash flows based upon current market expectations. The valuation also reflects the credit standing of the Company and the counterparties to the derivative agreements. The credit valuation adjustment was determined to be $167 and $49 (both of which were additions to the net fair value) as of December 31, 2019 and 2018, respectively. The following table summarizes the Company’s derivative assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) December 31, 2019 Assets Interest rate swaps - not designated as hedges $ — $ 135 $ — Total $ — $ 135 $ — Liabilities Interest rate swaps - designated as hedges $ — $ 117 $ — Interest rate swaps - not designated as hedges — 13,661 — Total $ — $ 13,778 $ — December 31, 2018 Assets Interest rate swaps - not designated as hedges $ — $ 5,555 $ — Total $ — $ 5,555 $ — Liabilities Interest rate swaps - not designated as hedges $ — $ 3,639 $ — Total $ — $ 3,639 $ — The following table summarizes the Company’s assets measured at fair value on a non-recurring basis as of December 31, 2019 and 2018: Quoted Prices in Active Markets Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Years Ended December 31, 2019 and 2018 (Level 1) (Level 2) (Level 3) Cumulative Impairment December 31, 2019 Assets Containers held for sale (1) $ — $ 22,217 $ — $ 6,346 Total $ — $ 22,217 $ — $ 6,346 December 31, 2018 Assets Containers held for sale (1) $ — $ 10,898 $ — $ 5,129 Total $ — $ 10,898 $ — $ 5,129 (1) Represents the carrying value of containers included in “containers held for sale” in the consolidated balance sheets that have been impaired to write down the value of the containers to their estimated fair value less cost to sell. (2) Represents the cumulative net impairment charges recognized on equipment held for sale from the date of designated held for sale status to the indicated period end date. Fair Value of Containers Held for Sale The Company recorded impairments to write down the value of containers identified for sale to their estimated fair value less cost to sell under a Level 2 input. The Company relies on its recent sales prices for identical or similar assets in markets, by geography, that are active. The Company’s containers held for sale that have been impaired to their estimated fair value less cost to sell had a fair value of $22,217 and $10,898 as of December 31, 2019 and 2018, respectively. Subsequent additions or reductions to the fair values of these written down assets are recorded as adjustments to the carrying value of the equipment held for sale. Fair Value of Other Assets and Liabilities The Company’s financial instruments include cash and cash equivalents; restricted cash; accounts receivable and payable; container leaseback financing receivable; net investment in direct financing and sales-type leases; due from affiliates, net; container contracts payable; due to container investors, net; debt and derivative instruments. At December 31, 2019 and 2018, the fair value of the Company’s financial instruments approximated the related book value of such instruments except that, the fair value of net investment in direct financing and sales-type leases (including the short-term balance) was approximately $299,275 and $167,758 at December 31, 2019 and 2018, respectively, compared to book values of $295,303 and $167,060 at December 31, 2019 and 2018, respectively. The fair value of container leaseback financing receivable (including the short-term balance) was approximately $267,551 at December 31, 2019, compared to book values of $271,658 at December 31, 2019. The fair value of long-term debt (including current maturities) based on the borrowing rates available to the Company was approximately $3,798,683 and $3,394,118 at December 31, 2019 and 2018, respectively, compared to book values of $3,797,729 and $3,409,827 at December 31, 2019 and 2018, respectively. |
Reclassifications and Changes in Presentation | ( u ) Reclassifications and Changes in Presentation Certain prior period amounts for the years ended December 31, 2018 and 2017 have been reclassified to conform to the presentation for the current period. The changes in the presentation have no impact on “net income.” • The Company reclassified the amounts to write down the value of containers held for sale to their estimated fair value less cost to sell, net of reversals of previously recorded impairments on containers held for sale due to rising used container prices out of the separate line item “container impairment” to be included within the line item “depreciation expense” in the consolidated statements of comprehensive income. • The Company reclassified the amounts to write-off containers that were unlikely to be recovered from lessees in default, net of gains associated with recoveries on containers previously estimated as lost with insolvent lessees out of the separate line item “container impairment” and container recovery costs out of the separate line item “direct container expense – owned fleet” to be included within the line item “container lessee default (recovery) expense, net” in the consolidated statements of comprehensive income. Certain prior period amounts for the year ended December 31, 2018 have been reclassified to conform to the current period presentation. The changes in the presentation have no impact on “total equity.” • The Company previously recorded amounts due to third-party owners on a net basis in “due to container investors, net”, thus the gross amounts of accounts receivable, prepaid expenses, accounts payable and accrued expenses for the managed fleet were reclassified out of the separate line item “due to container investors, net” to the separate line items “accounts receivable, net”, “prepaid expenses and other current assets” and “accounts payable and accrued expenses” in the consolidated balance sheets (See Note 2 “Immaterial Reclassification of Prior Period” and Note 5 “Managed Container Fleet”). • The Company reclassified the amounts out of the separate line item “insurance receivable” to be included within the line item “prepaid expenses and other current assets” in the consolidated balance sheets. • The Company reclassified the amounts out of the separate line item “accrued expenses” to be included within the line item “accounts payable and accrued expenses” in the consolidated balance sheets. Additionally, upon adoption of the FASB Accounting Standards Update No. 2016-02, Leases (“Topic 842”) investing activities to be included within the line item “ decrease (increase) in net investments on direct financing and sales-type leases ” in cash flows from operating activities in the consolidated statements of cash flows for the year ended December 31 , 2018 . The changes in the presentation have no impact on “net increase in cash, cash equivalents and restricted cash.” |
Leases | ( v ) Leases The Company adopted ASU 2016-02 on the effective date of January 1, 2019 by using the effective date transition method and by electing the “ package of practical expedients.” initially applied the provisions of the new lease guidance at the adoption date of January 1, 2019, without adjusting the reported comparative periods and without reassessing as follows: • whether any expired or existing contracts are or contain leases under Topic 842; • whether the lease classification for any expired or existing leases would be different in accordance with Topic 842; and • whether the unamortized initial direct costs for any existing leases would have met the definition of initial direct costs in Topic 842 at lease commencement. As a result of the adoption of the new lease accounting guidance, the Company (as a lessee) recognized the following in the consolidated balance sheets for all existing leases for office space on January 1, 2019, with the exception for short-term leases and leases that commence at or near the end of the underlying asset’s economic life: (i) Right-of-use (“ROU”) asset (ii) Lease liability As a result of the adoption of the new lease accounting guidance, the Company’s accounting (as a lessor) for sales-type leases, direct financing leases and operating leases will remain substantially unchanged. The Company is required to report all cash receipts from leases, including principal payments received from direct financing and sales-type leases, within operating activities in the Company’s consolidated statements of cash flows. Accordingly, receipts of payments on direct financing and sales-type leases, net of income earned amounting to $63,847 and $66,846 for the year ended December 31, 2018 and 2017, respectively, was reclassified from “net cash used in investing activities” to “net cash provided by operating activities.” The adoption of ASU 2016-02 did not have an impact on the timing of revenue recognition relating to lease rental income in its consolidated statements of comprehensive income. The Company did not record a cumulative adjustment related to the adoption of ASU 2016-02. See Note 1 (e) “Accounting Policies and Recent Accounting Pronouncements – Revenue Recognition” and Note 7 “Leases” for further discussions. |
Recently Issued Accounting Standards and Pronouncements | ( w ) Recently Issued Accounting Standards and Pronouncements In August 2017, the FASB issued Accounting Standards Update No. 2017-12, Derivatives and Hedging (Topic 815 . ASU 2017-12 changes the recognition and presentation requirements of hedge accounting, including: eliminating the requirement to separately measure and report hedge ineffectiveness; and presenting all items that affect earnings in the same income statement line item as the hedged item. The Company adopt ed the standard on its effective date of January 1, 2019 using the required modified retrospective approach; however, the Company had no hedging relationships in effect at the adoption date that were impacted by the guidance. T he adoption of this standard did not have a significant impact on the Company’s consolidated financial statements (see Note 1 ( o ) “Derivative Instrument s and Hedging” and Note 9 “Debt and Derivatives” for hedge accounting disclosures) . In October 2018, the FASB issued Accounting Standards Update No. 2018-16 , Derivatives and Hedging (Topic 815) - In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326) Codification Improvements to Financial Instruments – Credit Losses (Topic 326) In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles - Goodwill and Other (Topic 350) - In December 2019, the FASB issued Accounting Standards Update No. 2019-12, Income Taxes (Topic 740) – ASU 2019-12 are meant to simplify and reduce the cost of accounting for income taxes by remov ing certain exceptions to the general principle in Topic 740 and to provide more consistent application to improve the comparability of the financial statements. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. The Company early adopted the standard on December 31, 2019. The adoption of this standard did not have a significant impact on the Company’s consolidated financial statements . |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash Reported Within the Consolidated Statements | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the amounts shown in the consolidated statements of cash flows: 2019 2018 2017 Cash and cash equivalents $ 180,552 $ 137,298 $ 137,894 Restricted cash included in long-term assets 97,353 87,630 99,675 Cash, cash equivalents and restricted cash, end of period $ 277,905 $ 224,928 $ 237,569 |
Schedule of Cost, Accumulated Depreciation and Net Book Value of the Company's Leasing Equipment by Equipment Type | The Company estimates the useful lives and residual values of its containers to be as follows: As of December 31, 2019 As of December 31, 2018 Estimated Residual Estimated Residual life (years) Value life (years) Value Dry containers other than open top and flat rack containers: 20' 13 $ 1,000 13 $ 1,000 40' 14 $ 1,200 14 $ 1,200 40' high cube 13 $ 1,400 13 $ 1,350 to $1,400 45' high cube 13 $ 1,500 13 $ 1,500 Refrigerated containers: 20' 12 $ 2,750 12 $ 2,750 20' high cube 12 $ 2,049 12 $ 2,049 40' high cube 12 $ 4,000 12 $ 4,000 to $4,500 Open top and flat rack containers: 20' folding flat rack 15 $ 1,300 15 $ 1,300 40' folding flat rack 16 $ 1,700 16 $ 1,700 20' open top 15 $ 1,500 15 $ 1,500 40' open top 14 $ 2,500 14 $ 2,500 Tank containers 20 10% of cost 20 10% of cost The cost, accumulated depreciation and net book value of the Company’s container leasing equipment by equipment type as of December 31, 2019 and 2018 were as follows: 2019 2018 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Dry containers other than open top and flat rack containers: 20' $ 1,627,878 $ (396,247 ) $ 1,231,631 $ 1,632,927 $ (381,929 ) $ 1,250,998 40' 167,011 (58,852 ) 108,159 191,354 (69,463 ) 121,891 40' high cube 2,510,937 (592,374 ) 1,918,563 2,376,975 (540,349 ) 1,836,626 45' high cube 28,670 (11,488 ) 17,182 29,305 (10,034 ) 19,271 Refrigerated containers: 20' 20,484 (7,258 ) 13,226 20,883 (6,153 ) 14,730 20' high cube 5,139 (3,090 ) 2,049 5,148 (2,714 ) 2,434 40' high cube 1,052,707 (338,068 ) 714,639 1,030,078 (279,661 ) 750,417 Open top and flat rack containers: 20' folding flat 17,617 (4,538 ) 13,079 16,641 (4,068 ) 12,573 40' folding flat 51,152 (17,278 ) 33,874 46,182 (16,052 ) 30,130 20' open top 13,259 (1,625 ) 11,634 13,152 (1,419 ) 11,733 40' open top 23,313 (4,351 ) 18,962 27,629 (5,086 ) 22,543 Tank containers 81,151 (7,998 ) 73,153 65,963 (5,293 ) 60,670 $ 5,599,318 $ (1,443,167 ) $ 4,156,151 $ 5,456,237 $ (1,322,221 ) $ 4,134,016 |
Net Gain on Sale of Owned Fleet Containers | During the years ended December 31, 2019, 2018 and 2017, the Company recorded the following net gain on sale of containers, included in “gain on sale of owned fleet containers, net” in the consolidated statements of comprehensive income: 2019 2018 2017 Units Amount Units Amount Units Amount Gain on sale of previously written down owned fleet containers, net 52,319 $ 6,665 28,291 $ 14,563 56,862 $ 18,662 Gain on sale of owned fleet containers not written down, net 52,126 14,732 79,119 21,508 55,505 7,548 Gain on sale of owned fleet containers, net 104,445 $ 21,397 107,410 $ 36,071 112,367 $ 26,210 |
Schedule of Concentration Risk of Lease Rental Income/Gross Accounts Receivable | Company’s lease rental income from its owned fleet during the years ended December 31, 2019, 2018 and 2017, as well, there is no other single lessee that accounted for more than 10% of the Company’s gross accounts receivable from its owned fleet as of December 31, 2019 and 2018: Lease Rental Income - owned fleet 2019 2018 2017 Customer A 15.4 % 14.0 % 14.4 % Customer B 13.3 % 13.4 % 13.6 % |
Schedule of Concentration Risk of Total Fleet Lease Rental Income | Except for the lessees noted in the table below, no other single lessee accounted for more than 10% of the Company’s total fleet lease rental income in 2019, 2018 and 2017, as well, there is no other single lessee that accounted for more than 10% of the Company’s gross accounts receivable from its total fleet as of December 31, 2019 and 2018: Lease Rental Income - total fleet 2019 2018 2017 Customer A 14.8 % 13.8 % 14.8 % Customer B 13.5 % 13.7 % 14.3 % |
Customers in Countries Outside of U.S. Made up Greater Than 10% of Total Fleet Container Lease Billings | Except for the countries outside of the U.S. noted in the table below, customers in no other single country made up greater than 10% of the Company’s total fleet container lease billings during 2019, 2018 and 2017. Country 2019 2018 2017 Taiwan 15.5 % 14.6 % 13.9 % People's Republic of China 14.1 % 15.0 % 14.4 % France 14.0 % 13.8 % 14.4 % Switzerland 13.3 % 14.1 % 15.1 % Singapore 11.1 % 10.5 % 10.9 % |
Reconciliation of Numerator and Denominator of Basic Earnings Per Share ("EPS") With That of Diluted EPS | A reconciliation of the numerator and denominator of basic EPS with that of diluted EPS during 201 9 , 201 8 and 201 7 is presented as follows: Share amounts in thousands 2019 2018 2017 Numerator: Net income attributable to Textainer Group Holdings Limited common shareholders $ 56,724 $ 50,378 $ 19,365 Denominator: Weighted average common shares outstanding-- basic 57,349 57,200 56,845 Dilutive share options and restricted share units 110 287 314 Weighted average common shares outstanding-- diluted 57,459 57,487 57,159 Net income attributable to Textainer Group Holdings Limited common shareholders per common share Basic $ 0.99 $ 0.88 $ 0.34 Diluted $ 0.99 $ 0.88 $ 0.34 Share options and restricted share units, excluded from the computation of diluted EPS because they were anti-dilutive 1,805 1,232 1,164 |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s derivative assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) December 31, 2019 Assets Interest rate swaps - not designated as hedges $ — $ 135 $ — Total $ — $ 135 $ — Liabilities Interest rate swaps - designated as hedges $ — $ 117 $ — Interest rate swaps - not designated as hedges — 13,661 — Total $ — $ 13,778 $ — December 31, 2018 Assets Interest rate swaps - not designated as hedges $ — $ 5,555 $ — Total $ — $ 5,555 $ — Liabilities Interest rate swaps - not designated as hedges $ — $ 3,639 $ — Total $ — $ 3,639 $ — |
Summary of Assets Measured at Fair Value on Non-Recurring Basis | The following table summarizes the Company’s assets measured at fair value on a non-recurring basis as of December 31, 2019 and 2018: Quoted Prices in Active Markets Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Years Ended December 31, 2019 and 2018 (Level 1) (Level 2) (Level 3) Cumulative Impairment December 31, 2019 Assets Containers held for sale (1) $ — $ 22,217 $ — $ 6,346 Total $ — $ 22,217 $ — $ 6,346 December 31, 2018 Assets Containers held for sale (1) $ — $ 10,898 $ — $ 5,129 Total $ — $ 10,898 $ — $ 5,129 (1) Represents the carrying value of containers included in “containers held for sale” in the consolidated balance sheets that have been impaired to write down the value of the containers to their estimated fair value less cost to sell. (2) Represents the cumulative net impairment charges recognized on equipment held for sale from the date of designated held for sale status to the indicated period end date. |
Accounts Receivable | |
Schedule of Concentration Risk of Lease Rental Income/Gross Accounts Receivable | Gross Accounts Receivable - owned fleet 2019 2018 Customer A 17.1 % 10.7 % Customer B 11.2 % 21.3 % |
Schedule of Concentration Risk of Total Fleet Lease Rental Income | Gross Accounts Receivable - total fleet 2019 2018 Customer A 16.6 % 10.4 % Customer B 12.0 % 20.6 % |
Immaterial Reclassification o_2
Immaterial Reclassification of Prior Period Presentation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Summary of Reclassifications of Financial Statement Presentation in Consolidated Balance Sheet | The impact of the reclassification of the financial statement presentation in the consolidated balance sheet as of December 31, 2018 are as follows: As of December 31, 2018 As Reported Adjustment As Restated Accounts receivable, net $ 110,222 $ 24,003 $ 134,225 Prepaid expenses and other current assets $ 22,669 $ 470 $ 23,139 Total current assets $ 373,877 $ 24,473 $ 398,350 Total assets $ 4,744,296 $ 24,473 $ 4,768,769 Accounts payable and accrued expenses $ (25,174 ) $ (2,123 ) $ (27,297 ) Due to container investors, net $ (8,322 ) $ (22,350 ) $ (30,672 ) Total current liabilities $ (268,114 ) $ (24,473 ) $ (292,587 ) Total liabilities $ (3,508,305 ) $ (24,473 ) $ (3,532,778 ) |
Insurance Receivable and Impa_2
Insurance Receivable and Impairment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Insurance Receivable on Fleet | Insurance receivable recorded on the Company’s owned fleet related to this insolvent customer are as follows: Estimated unrecovered containers, net of insurance deductible $ 409 Recovery costs 1,383 Insurance receivable related to this insolvent customer as of December 31, 2019 $ 1,792 |
Managed Container Fleet (Tables
Managed Container Fleet (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Company's Leasing Equipment | The Company’s container leasing equipment included in the consolidated balance sheet as of December 31, 2019 and 2018 consisted of the following: 2019 2018 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Containers - owned fleet $ 5,582,986 $ (1,442,986 ) $ 4,140,000 $ 5,456,237 $ (1,322,221 ) $ 4,134,016 Containers - managed fleet 16,332 (181 ) 16,151 — — — Total containers $ 5,599,318 $ (1,443,167 ) $ 4,156,151 $ 5,456,237 $ (1,322,221 ) $ 4,134,016 |
Summary of Total Lease Management Fee Income from Managed Fleet, Including Management Fees Earned from Acquisition Fees and Sales Commissions | Total management fee income from the managed fleet, including management fees earned from acquisition fees and sales commissions during 2019, 2018 and 2017 were as follows (also, see Note 6 “Transactions with Affiliates and Container Investors”): 2019 2018 2017 Lease rental income - managed fleet $ 101,901 $ 111,342 $ 104,566 Less: distribution expense to managed fleet container investors (93,858 ) (102,992 ) (96,718 ) Less: depreciation and interest expense on managed containers purchased on or after January 1, 2019 (394 ) — — Management fees from leasing 7,649 8,350 7,848 Management fees from non-leasing services 7,590 8,529 7,146 Total management fees $ 15,239 $ 16,879 $ 14,994 |
Summary of Reconciliation of Accounts Receivable, Prepaid Expenses and Other Current Assets, Container Contracts Payable and Accounts Payable and Accrued Expenses | The following table provides a reconciliation of the accounts receivable, prepaid expenses and other current assets, container contracts payable and accounts payable and accrued expenses from the managed fleet to the total amount as of December 31, 2019 and 2018 in the consolidated balance sheets 2019 2018 Accounts receivable - owned fleet $ 96,158 $ 110,222 Accounts receivable - managed fleet 13,226 24,003 Total accounts receivable $ 109,384 $ 134,225 Prepaid expenses and other current assets - owned fleet $ 14,627 $ 22,669 Prepaid expenses and other current assets - managed fleet 189 470 Total prepaid expenses and other current assets $ 14,816 $ 23,139 Accounts payable and accrued expenses - owned fleet $ 21,451 $ 25,174 Accounts payable and accrued expenses - managed fleet 1,953 2,123 Total accounts payable and accrued expenses $ 23,404 $ 27,297 Container contracts payable - owned fleet $ 9,394 $ 42,710 Container contracts payable - managed fleet — — Total container contracts payable $ 9,394 $ 42,710 |
Transactions with Affiliates _2
Transactions with Affiliates and Container Investors (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Total Fees Earned from Management of the Containers, Including Acquisition Fees and Sales Commissions | Total fees earned from management of the containers, including acquisition fees and sales commissions during 2019, 2018 and 2017 were as follows: 2019 2018 2017 Fees from affiliated Container Investors $ 3,527 $ 3,575 $ 2,994 Fees from unaffiliated Container Investors 11,374 11,334 10,073 Fees from Container Investors 14,901 14,909 13,067 Other fees 338 1,970 1,927 Total management fees $ 15,239 $ 16,879 $ 14,994 |
Summary of Due to Container Investors, Net | The following table provides a summary of due to container investors, net at December 31, 2019 and 2018: 2019 2018 Affiliated Container Investors $ — $ 5,718 Unaffiliated Container Investors 21,978 24,954 Due to container investors, net $ 21,978 $ 30,672 Accounts receivable - managed fleet $ 13,226 $ 24,003 Prepaid expenses and other current assets - managed fleet 189 470 Accounts payable and accrued expenses - managed fleet (1,953 ) (2,123 ) Container contracts payable - managed fleet - - 11,462 22,350 Distributions due to container investors on lease rentals collected, net of container expenses paid and management fees 10,516 8,322 Due to container investors, net $ 21,978 $ 30,672 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Rental Income | The Company’s lease rental income for the year ended December 31, 2019 were as follows: Owned Managed Total Lease rental income - operating leases $ 470,722 $ 96,989 $ 567,711 Interest income on net investment in direct financing and sales-type leases 15,356 — 15,356 Interest income on container leaseback financing receivable 10,313 — 10,313 Variable lease revenue 21,468 4,912 26,380 Total lease rental income $ 517,859 $ 101,901 $ 619,760 |
Schedule Future Minimum Lease Payments Receivable | Operating Leases The following is a schedule, by year, of future minimum lease payments receivable under the long-term leases for the owned and managed container fleet as of December 31, 2019: Owned Managed Total Year ending December 31: 2020 $ 294,320 $ 31,490 $ 325,810 2021 216,480 17,913 234,393 2022 169,623 6,955 176,578 2023 133,225 5,194 138,419 2024 and thereafter 245,960 14,778 260,738 Total future minimum lease payments receivable $ 1,059,608 $ 76,330 $ 1,135,938 |
Summary of Future Minimum Payments Receivable Under Container Leaseback Financing Receivable | The following is a schedule, by year, of future minimum payments receivable under the container leaseback financing receivable as of December 31, 2019: Twelve months ending December 31: 2020 $ 36,121 2021 36,022 2022 36,022 2023 36,022 2024 and thereafter 198,027 Total future minimum payments receivable 342,214 Add: residual value of containers 35,703 Less: unearned income (106,259 ) Container leaseback financing receivable (1) $ 271,658 Amounts due within one year 20,547 Amounts due beyond one year 251,111 Container leaseback financing receivable $ 271,658 (1) As of December 31, 2019, two customers represented 82.9% and 17.1% of the Company’s container leaseback financing receivable portfolio. |
Schedule of Components of Net Investment in Direct Financing and Sales-type Leases | The following table represents the components of the net investment in direct financing and sales-type leases as of December 31, 2019 and 2018: 2019 2018 Future minimum lease payments receivable $ 385,589 $ 196,041 Residual value of containers 11,143 11,393 Less unearned income (101,429 ) (40,374 ) Net investment in direct financing and sales-type leases $ 295,303 $ 167,060 Amounts due within one year $ 40,940 $ 39,270 Amounts due beyond one year 254,363 127,790 Net investment in direct financing and sales-type leases (1) $ 295,303 $ 167,060 (1) As of December 31, 2019, two major customers represented 44.3% and 16.1% of the Company’s direct financing and sales-type leases portfolio. As of December 31, 2018, three major customers represented 20.6%, 17.0% and 11.3% of the Company’s direct financing and sales-type leases portfolio. No other customer represented more than 10% of the Company’s direct financing and sales-type leases portfolio as of December 31, 2019 and 2018 . |
Future Minimum Lease Payments Receivable Under Direct Financing and Sales-type Leases | The following is a schedule by year of future minimum lease payments receivable under these direct financing and sales-type leases as of December 31, 2019: Year ending December 31: 2020 $ 59,075 2021 62,136 2022 38,680 2023 32,959 2024 and thereafter 192,739 Total future minimum lease payments receivable $ 385,589 |
Schedule of Other Information Related to Operating Leases | Other information related to the Company's operating leases are as follows: 2019 Operating lease cost $ 2,095 Short-term and variable lease cost 138 Total rent expense $ 2,233 Cash paid for amounts included in the measurement of lease liabilities $ 2,098 2019 Weighted-average remaining lease term 5.4 years Weighted-average discount rate 4.17% |
Minimum Lease Payment under Noncancelable Operating Leases | Future minimum lease payment obligations under the Company’s noncancelable operating leases at December 31, 2019 were as follows: Operating leasing Year ending December 31: 2020 $ 2,232 2021 2,200 2022 2,039 2023 2,103 2024 and thereafter 7,392 Total lease payments 15,966 Less imputed interest (2,230 ) Total operating lease liabilities $ 13,736 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Component of Income Tax Expense | The Company estimates its tax liability based upon its understanding of the tax laws of the various countries in which it operates. Income tax expense for 2019, 2018 and 2017 consisted of the following: 2019 2018 2017 Current Bermuda $ — $ — $ — Foreign 499 1,407 2,142 499 1,407 2,142 Deferred Bermuda — — — Foreign 1,449 618 (524 ) 1,449 618 (524 ) $ 1,948 $ 2,025 $ 1,618 |
Components of Income Before Income Taxes and Noncontrolling Interest | The components of income before income taxes and noncontrolling interest were as follows: 2019 2018 2017 Bermuda sources $ — $ — $ — Foreign sources 58,504 56,275 22,360 $ 58,504 $ 56,275 $ 22,360 |
Reconciliation of Differences between Bermuda Statutory Income Tax Rate and Effective Tax Rate | A reconciliation of the differences between the Bermuda statutory income tax rate and the effective tax rate as provided in the consolidated statements of comprehensive income is as follows: 2019 2018 2017 Bermuda tax rate $ — 0.00 % $ — 0.00 % $ — 0.00 % Foreign tax rate 188 0.32 % (142 ) (0.25 )% (1,297 ) (5.80 )% Tax uncertainties 1,760 3.01 % 2,167 3.85 % 2,915 13.04 % $ 1,948 3.33 % $ 2,025 3.60 % $ 1,618 7.24 % The components of income tax expense and effective tax rate were as follows: 2019 2018 2017 Income before income tax and noncontrolling interests $ 58,504 $ 56,275 $ 22,360 Tax uncertainties $ 1,760 3.01 % $ 2,167 3.85 % $ 2,915 13.04 % Foreign taxes Stock based compensation 405 0.69 % 128 0.23 % (304 ) (1.36 )% Adjustment for prior years 270 0.46 % 367 0.65 % (71 ) (0.32 )% Revaluation of deferred taxes due to TCJA — — — — (2,653 ) (11.86 )% Foreign derived intangible income (77 ) (0.13 )% (199 ) (0.35 )% — — Valuation allowance 315 0.54 % 272 0.48 % 1,166 5.21 % Foreign rate difference (778 ) (1.33 )% (758 ) (1.35 )% 565 2.53 % Other 53 0.09 % 48 0.09 % — — 188 0.32 % (142 ) (0.25 )% (1,297 ) (5.80 )% $ 1,948 3.33 % $ 2,025 3.60 % $ 1,618 7.24 % |
Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are presented below: 2019 2018 Deferred tax assets Net operating loss carryforwards $ 19,410 $ 19,616 Other 1,568 2,173 20,978 21,789 Valuation allowance (net operating loss) (707 ) (992 ) Deferred tax assets 20,271 20,797 Deferred tax liabilities Containers, net 25,975 25,039 Other 697 710 Deferred tax liabilities 26,672 25,749 Net deferred tax liabilities $ 6,401 $ 4,952 |
Reconciliation of Beginning and Ending Unrecognized Tax Benefit Amount | A reconciliation of the beginning and ending unrecognized tax benefit amounts for 2019 and 2018 are as follows: Balance at December 31, 2017 $ 16,150 Increases related to prior year tax positions 4 Decreases related to prior year tax positions (2 ) Increases related to current year tax positions 3,131 Lapse of statute of limitations (1,138 ) Balance at December 31, 2018 18,145 Decreases related to prior year tax positions (82 ) Increases related to current year tax positions 2,922 Lapse of statute of limitations (1,343 ) Balance at December 31, 2019 $ 19,642 |
Debt and Derivative Instrumen_2
Debt and Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Obligation | The following represents the Company’s debt obligations as of December 31, 2019 and 2018: Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable 2019 2018 Outstanding Average Interest Outstanding Average Interest Final Maturity TL Revolving Credit Facility $ 1,280,037 3.29 % $ 1,272,074 4.00 % September 2023 TL 2019 Term Loan 158,371 3.50 % — — December 2026 TMCL II Secured Debt Facility (1) 689,658 3.49 % 654,485 4.36 % July 2026 TMCL V 2017-1 Bonds 316,395 3.91 % 353,884 3.91 % May 2042 TMCL V 2017-2 Bonds 395,836 3.73 % 435,838 3.73 % June 2042 TMCL VI Term Loan 249,421 4.30 % 276,210 4.30 % February 2038 TMCL VII 2018-1 Bonds 227,624 4.14 % 245,399 4.14 % July 2043 TMCL VII 2019-1 Bonds 327,563 4.02 % — — April 2044 TAP Funding Revolving Credit Facility 152,824 3.69 % 171,937 4.41 % December 2021 Total debt obligations $ 3,797,729 $ 3,409,827 Amount due within one year $ 242,433 $ 191,689 Amounts due beyond one year $ 3,555,296 $ 3,218,138 (1) Final maturity of the TMCL II Secured Debt Facility is based on the assumption that the facility will not be extended on its scheduled conversion date. |
Future Scheduled Repayments | The following is a schedule of future scheduled repayments, by year, and borrowing capacities, as of December 31, 2019: Twelve months ending December 31, Available borrowing, Current and Available Borrowing, 2020 2021 2022 2023 2024 and thereafter Total Borrowing as limited by the Borrowing Base as limited by the Borrowing Base TL Revolving Credit Facility $ 5,063 $ 138,229 $ 138,229 $ 1,004,768 $ — $ 1,286,289 $ 133,165 $ 1,419,454 TL 2019 Term Loan 10,523 10,898 11,285 11,686 115,608 160,000 — 160,000 TMCL II Secured Debt Facility 68,459 66,435 60,474 52,086 447,052 694,506 — 694,506 TMCL V 2017-1 Bonds 39,357 52,173 63,220 62,557 101,572 318,879 — 318,879 TMCL V 2017-2 Bonds (1) 43,958 55,259 67,021 80,125 152,584 398,947 — 398,947 TMCL VI Term Loan 25,500 25,500 25,500 25,500 149,400 251,400 — 251,400 TMCL VII 2018-1 Bonds (1) 18,655 18,655 18,655 18,655 157,796 232,416 — 232,416 TMCL VII 2019-1 Bonds (1) 28,000 28,000 28,000 28,000 219,333 331,333 — 331,333 TAP Funding Revolving Credit Facility 11,038 142,487 — — — 153,525 4,078 157,603 Total (2) $ 250,553 $ 537,636 $ 412,384 $ 1,283,377 $ 1,343,345 $ 3,827,295 $ 137,243 $ 3,964,538 ( 1 ) Future scheduled payments for the TMCL V 2017-2 Bonds, TMCL VII 2018-1 Bonds and TMCL VII 2019-1 Bonds exclude an unamortized discount of $45, $2,332 and $101, respectively. ( 2 ) Future scheduled payments for all debts exclude unamortized prepaid debt issuance costs in an aggregate amount of $27,088. |
Summary of Derivative Instruments | The following is a summary of the Company’s derivative instruments as of December 31, 2019: Notional Derivative instruments amount Interest rate swap contracts with several banks, with fixed rates between 1.27% and 2.94% per annum, amortizing notional amounts, with termination dates through January 15, 2023, non-designated $ 796,500 Interest rate swap contracts with several banks, with fixed rates between 1.57% and 1.58% per annum, amortizing notional amounts, with termination dates through April 15, 2023, designated 110,000 Interest rate cap contracts with several banks with fixed rates between 3.00% and 5.00% per annum, nonamortizing notional amounts, with termination dates through September 15, 2022, non-designated 124,000 Total notional amount as of December 31, 2019 $ 1,030,500 |
Summary of Pre-tax Impact of Derivative Instruments on Consolidated Statements of Comprehensive Income | The following table summarizes the pre-tax impact of derivative instruments on the consolidated statements of comprehensive income during the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 Derivative instruments Financial Statement Caption Non-designated derivative instruments Realized gain (loss) on derivative instruments, net $ 1,939 $ 5,238 $ (1,191 ) Non-designated derivative instruments Unrealized (loss) gain on derivative instruments, net $ (15,442 ) $ (5,790 ) $ 4,094 Designated derivative instruments Other comprehensive loss $ (110 ) $ — $ — Designated derivative instruments Interest and debt income (expense), net $ 7 $ — $ — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information Reconciled to Income before Tax and Noncontrolling Interest | The following tables show segment information for 2019, 2018 and 2017, reconciled to the Company’s income before income tax and noncontrolling interests as shown in its consolidated statements of comprehensive income: Container Container Container 2019 Ownership Management Resale Other Eliminations Totals Lease rental income - owned fleet $ 516,307 $ 1,552 $ — $ — $ — $ 517,859 Lease rental income - managed fleet — 101,901 — — — 101,901 Lease rental income $ 516,307 $ 103,453 $ — $ — $ — $ 619,760 Management fees - non-leasing from external customers $ 219 $ 1,646 $ 5,725 $ — $ — $ 7,590 Inter-segment management fees $ — $ 48,215 $ 12,323 $ — $ (60,538 ) $ — Trading container margin $ — $ — $ 7,398 $ — $ — $ 7,398 Gain on sale of owned fleet containers, net $ 21,397 $ — $ — $ — $ — $ 21,397 Depreciation expense $ 266,832 $ 916 $ — $ — $ (7,376 ) $ 260,372 Container lessee default expense, net $ 7,867 $ — $ — $ — $ — $ 7,867 Interest expense $ 152,914 $ 271 $ — $ — $ — $ 153,185 Realized gain on derivative instruments, net $ 1,946 $ — $ — $ — $ — $ 1,946 Unrealized loss on derivative instruments, net $ 15,442 $ — $ — $ — $ — $ 15,442 Segment income (loss) before income tax and noncontrolling interests (1) $ 14,296 $ 27,747 $ 21,036 $ (4,089 ) $ (486 ) $ 58,504 Total assets $ 5,101,301 $ 184,215 $ 19,573 $ 7,206 $ (109,678 ) $ 5,202,617 Purchase of containers and fixed assets $ 420,971 $ 12,706 $ — $ — $ — $ 433,677 Payments on container leaseback financing receivable $ 281,445 $ — $ — $ — $ — $ 281,445 Container Container Container 2018 Ownership Management Resale Other Eliminations Totals Lease rental income - owned fleet $ 498,414 $ 2,948 $ — $ — $ — $ 501,362 Lease rental income - managed fleet — 111,342 — — — 111,342 Lease rental income $ 498,414 $ 114,290 $ — $ — $ — $ 612,704 Management fees - non-leasing from external customers $ 235 $ 2,752 $ 5,542 $ — $ — $ 8,529 Inter-segment management fees $ — $ 48,646 $ 12,132 $ — $ (60,778 ) $ — Trading container margin $ — $ — $ 3,450 $ — $ — $ 3,450 Gain on sale of owned fleet containers, net $ 36,071 $ — $ — $ — $ — $ 36,071 Depreciation expense $ 255,442 $ 794 $ — $ — $ (6,736 ) $ 249,500 Container lessee default expense, net $ 17,948 $ — $ — $ — $ — $ 17,948 Interest expense $ 138,427 $ — $ — $ — $ — $ 138,427 Write-off of unamortized deferred debt issuance costs and bond discounts $ 881 $ — $ — $ — $ — $ 881 Realized gain on derivative instruments, net $ 5,238 $ — $ — $ — $ — $ 5,238 Unrealized loss on derivative instruments, net $ 5,790 $ — $ — $ — $ — $ 5,790 Segment income (loss) before income tax and noncontrolling interests (1) $ 26,166 $ 20,322 $ 16,128 $ (4,083 ) $ (2,258 ) $ 56,275 Total assets $ 4,648,938 $ 152,801 $ 45,110 $ 10,653 $ (88,733 ) $ 4,768,769 Purchase of containers and fixed assets $ 765,297 $ 709 $ — $ — $ — $ 766,006 Container Container Container 2017 Ownership Management Resale Other Eliminations Totals Lease rental income - owned fleet $ 442,219 $ 2,669 $ — $ — $ — $ 444,888 Lease rental income - managed fleet — 104,566 — — — 104,566 Lease rental income $ 442,219 $ 107,235 $ — $ — $ — $ 549,454 Management fees - non-leasing from external customers $ 266 $ 2,105 $ 4,775 $ — $ — $ 7,146 Inter-segment management fees $ — $ 39,529 $ 9,477 $ — $ (49,006 ) $ — Trading container margin $ — $ — $ 1,456 $ — $ — $ 1,456 Gain on sale of owned fleet containers, net $ 26,210 $ — $ — $ — $ — $ 26,210 Depreciation expense $ 240,827 $ 776 $ — $ — $ (6,310 ) $ 235,293 Container lessee default expense, net $ 4,605 $ — $ — $ — $ — $ 4,605 Interest expense $ 117,475 $ — $ — $ — $ — $ 117,475 Write-off of unamortized deferred debt issuance costs and bond discounts $ 7,550 $ — $ — $ — $ — $ 7,550 Realized loss on derivative instruments, net $ 1,191 $ — $ — $ — $ — $ 1,191 Unrealized gain on derivative instruments, net $ 4,094 $ — $ — $ — $ — $ 4,094 Segment (loss) income before income tax and noncontrolling interests (1) $ (1,707 ) $ 15,376 $ 10,854 $ (3,568 ) $ 1,405 $ 22,360 Total assets $ 4,316,272 $ 160,899 $ 10,873 $ 6,859 $ (93,651 ) $ 4,401,252 Purchase of containers and fixed assets $ 418,288 $ 934 $ — $ — $ — $ 419,222 (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized loss on derivative instruments, net of $15,442 and $5,790 for the years ended December 31, 2019 and 2018, respectively, and unrealized gain of $4,094 for the year ended December 31, 2017, and write-off of unamortized deferred debt issuance costs and bond discounts of $881 and $7,550 for the years ended December 31, 2018 and 2017, respectively. |
Segment Information Geographic Allocation of Lease Rental Income and Management Fees | The following table represents the geographic allocation of total fleet lease rental income and management fees from non-leasing services during the years ended December 31, 2019, 2018 and 2017 based on customers’ and Container Investors’ primary domicile: Years ended December 31, 2019 Percent of Total 2018 Percent of Total 2017 Percent of Total Lease rental income: Asia $ 329,567 53.2 % $ 319,286 52.1 % $ 280,331 51.0 % Europe 255,495 41.2 % 255,753 41.7 % 232,888 42.4 % North / South America 31,786 5.1 % 34,053 5.6 % 30,480 5.5 % All other international 2,912 0.5 % 3,612 0.6 % 5,755 1.1 % $ 619,760 100.0 % $ 612,704 100.0 % $ 549,454 100.0 % Management fees, non-leasing: Bermuda $ 4,576 60.2 % $ 4,418 51.8 % $ 3,100 43.4 % Europe 2,334 30.8 % 2,089 24.5 % 2,097 29.3 % North / South America 342 4.5 % 1,970 23.1 % 1,928 27.0 % Asia 28 0.4 % 7 0.1 % 4 0.1 % All other international 310 4.1 % 45 0.5 % 17 0.2 % $ 7,590 100.0 % $ 8,529 100.0 % $ 7,146 100.0 % |
Segment Information Geographic Allocation of Trading Container Sales Proceeds and Gains on Sale of Owned Fleet Containers Net | The following table represents the geographic allocation of trading container sales proceeds and gain on sale of owned fleet containers, net during the years ended December 31, 2019, 2018 and 2017 based on the location of sale: Years ended December 31, 2019 Percent of Total 2018 Percent of Total 2017 Percent of Total Trading container sales proceeds: Asia $ 39,519 67.3 % $ 13,117 67.0 % $ 3,349 70.4 % North / South America 12,788 21.8 % 2,893 14.8 % 816 17.2 % Europe 6,411 10.9 % 3,487 17.8 % 593 12.5 % All other international 16 0.0 % 71 0.4 % — 0.0 % $ 58,734 100.0 % $ 19,568 100.0 % $ 4,758 100.0 % Gain on sale of owned fleet containers, net: Asia $ 7,714 36.0 % $ 18,593 51.5 % $ 18,321 69.9 % North / South America 6,809 31.8 % 7,043 19.5 % 5,002 19.1 % Europe 5,577 26.1 % 9,622 26.7 % 2,994 11.4 % Bermuda — 0.0 % — — — — All other international 1,297 6.1 % 813 2.3 % (107 ) (0.4 )% $ 21,397 100.0 % $ 36,071 100.0 % $ 26,210 100.0 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Restricted Cash | Restricted interest-bearing cash accounts were established by the Company as additional collateral for outstanding borrowings under certain of the Company’s debt facilities. Restricted cash at December 31, 2019 and 2018 consisted of the following: 2019 2018 Trust accounts $ 12,822 $ 10,139 Other restricted cash accounts 84,531 77,491 Total restricted cash $ 97,353 $ 87,630 |
Share Option and Restricted S_2
Share Option and Restricted Share Unit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Activity in the Company's 2019 Plan | The following is a summary of activity in the Company’s 2019 Plan for the years ended December 31, 2019, 2018, and 2017: Restricted share units Weighted average grant date fair value Balances, December 31, 2016 693,903 $ 14.72 Share units granted during the period 289,800 $ 20.82 Share units vested during the period (244,633 ) $ 18.33 Share units forfeited during the period (46,022 ) $ 14.24 Balances, December 31, 2017 693,048 $ 16.03 Share units granted during the period 274,845 $ 11.92 Share units vested during the period (289,685 ) $ 16.15 Share units forfeited during the period (37,458 ) $ 17.27 Balances, December 31, 2018 640,750 $ 14.20 Share units granted during the period 309,192 $ 9.20 Share units vested during the period (281,377 ) $ 13.97 Share units forfeited during the period (10,945 ) $ 14.32 Balances, December 31, 2019 657,620 $ 11.95 Share units outstanding and expected to vest at December 31, 2019 618,867 $ 11.97 Share options (common share equivalents) Weighted average exercise price Balances, December 31, 2016 1,431,813 $ 22.41 Options granted during the period 246,722 $ 22.75 Options exercised during the period (65,468 ) $ 14.67 Options expired during the period (45,638 ) $ 25.55 Options forfeited during the period (42,752 ) $ 16.04 Balances, December 31, 2017 1,524,677 $ 22.88 Options granted during the period 241,500 $ 11.15 Options exercised during the period (15,259 ) $ 8.49 Options expired during the period (9,552 ) $ 25.77 Options forfeited during the period (37,458 ) $ 17.61 Balances, December 31, 2018 1,703,908 $ 21.44 Options granted during the period 250,000 $ 9.14 Options exercised during the period (13,014 ) $ 9.70 Options expired during the period (113,917 ) $ 23.73 Options forfeited during the period (19,312 ) $ 14.08 Balances, December 31, 2019 1,807,665 $ 19.76 Options exercisable at December 31, 2019 1,209,237 $ 23.50 Options vested and expected to vest at December 31, 2019 1,769,705 $ 19.94 |
Summary of Information About Share Options Exercisable and Outstanding | The following table summarizes information about share options exercisable and outstanding at December 31, 2019: Share options exercisable Share options outstanding Number of shares Weighted average exercise Number of shares Weighted average exercise Range of per-share exercise prices: $9.13 - $ - 243,500 $ 9.13 $9.46 1,250 $ 9.46 5,000 $ 9.46 $9.70 202,981 $ 9.70 271,742 $ 9.70 $9.75 1,876 $ 9.75 3,750 $ 9.75 $11.15 59,132 $ 11.15 233,125 $ 11.15 $12.23 7,500 $ 12.23 10,000 $ 12.23 $14.17 200,041 $ 14.17 200,041 $ 14.17 $22.95 107,051 $ 22.95 211,101 $ 22.95 $28.05 - $28.26 196,507 $ 28.12 196,507 $ 28.12 $28.54 - $38.36 432,899 $ 34.31 432,899 $ 34.31 1,209,237 $ 23.50 1,807,665 $ 19.76 |
Fair Value of Stock Option Granted Assumptions Used | The estimated weighted average grant date fair value of share options granted during 2019, 2018 and 2017 was $4.47, $5.40 and $10.32 per share, respectively, and was estimated using the Black-Scholes option pricing model for the years ended December 31, 2019, 2018 and 2017 with the following assumptions: 2019 2018 2017 Risk-free interest rates 1.7 % 2.9 % 2.2 % Expected terms (in years) 5.5 5.5 5.4 Expected common share price volatilities 52.9 % 49.8 % 47.4 % Expected dividends 0.0 % 0.0 % 0.0 % Expected forfeitures 3.4 % 4.3 % 5.9 % |
Nature of Business and Summar_4
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail) | Jan. 01, 2019USD ($) | Dec. 20, 2012PersonVotingRight | Oct. 31, 2018USD ($) | Dec. 31, 2019USD ($)LesseeLeaseCustomer | Dec. 31, 2018USD ($)LesseeLeaseCustomer | Dec. 31, 2017USD ($)LesseeCustomer | Dec. 31, 2021USD ($) | Sep. 30, 2018 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Noncontrolling interest | $ 26,266,000 | $ 29,178,000 | |||||||
Net income attributable to noncontrolling interests | (168,000) | 3,872,000 | $ 1,377,000 | ||||||
Write-off intangible assets from the relinquishment of management rights | 2,000 | 835,000 | |||||||
Amortization expense | 2,093,000 | 3,721,000 | 4,092,000 | ||||||
Foreign currency exchange losses | 393,000 | 1,085,000 | 156,000 | ||||||
Impairment charges to write-off containers | [1] | $ 7,179,000 | 12,980,000 | 3,822,000 | |||||
Minimum likelihood of tax benefits being recognized | 50.00% | ||||||||
Debt issuance cost | $ 9,417,000 | 10,285,000 | 27,702,000 | ||||||
Amortization of debt issuance costs | 7,369,000 | 8,400,000 | 13,201,000 | ||||||
Write off of unamortized debt issuance cost | 0 | 84,000 | |||||||
Direct container expenses paid in various foreign currencies | $ 10,527,000 | $ 11,141,000 | $ 15,143,000 | ||||||
Percentage of direct container expenses paid in various foreign currencies | 23.00% | 21.00% | 25.00% | ||||||
Notional amounts | $ 1,030,500,000 | ||||||||
Gain (loss) on cash flow hedging instruments | 7,000 | ||||||||
Derivative instruments are designated | $ 0 | $ 0 | |||||||
Notional amount of non-designated interest rate swap and cap agreements | 920,500,000 | 1,227,969,000 | |||||||
Unrealized (loss) gain on derivative instruments, net | (15,442,000) | (5,790,000) | 4,094,000 | ||||||
Share-based compensation expense | 4,388,000 | 7,355,000 | 6,083,000 | ||||||
Addition to net fair value | 167,000 | 49,000 | |||||||
Fair value of net investment in direct financing and sales-type leases | 299,275,000 | 167,758,000 | |||||||
Net investment in direct financing and sales-type leases | 295,303,000 | 167,060,000 | |||||||
Fair value of container leaseback financing receivable | 267,551,000 | ||||||||
Net of container leaseback financing receivable | 271,658,000 | ||||||||
Fair value of long-term debt | 3,798,683,000 | 3,394,118,000 | |||||||
Long-term debt | 3,797,729,000 | 3,409,827,000 | |||||||
Right-of-use lease assets | 11,276,000 | ||||||||
Operating lease liabilities | $ 13,736,000 | ||||||||
Discounted approximate incremental borrowing rate | 4.17% | ||||||||
ASU 2016-02 | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Right-of-use lease assets | $ 12,317,000 | ||||||||
Operating lease liabilities | 14,815,000 | ||||||||
Deferred rent liability | 2,575,000 | ||||||||
Prepaid rent asset | 77,000 | ||||||||
Remaining lease payments payable under operating lease contracts | $ 17,548,000 | ||||||||
Discounted approximate incremental borrowing rate | 4.17% | ||||||||
Receipt of payments on direct financing and sales-type leases, net of income earned | 63,847,000 | 66,846,000 | |||||||
Stock Options And Restricted Stock Units | Stock Incentive Plan 2019 | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Share-based compensation expense | $ 4,388,000 | 7,355,000 | 6,083,000 | ||||||
General and Administrative Expenses | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Share-based compensation expense | 3,780,000 | $ 6,746,000 | $ 5,499,000 | ||||||
Accumulated Gain (Loss), Cash Flow Hedge Instruments | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Gain (loss) on cash flow hedging instruments | 110,000 | ||||||||
Interest Rate Swaps | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Notional amounts | $ 110,000 | ||||||||
Lease Rental Income | Customer Concentration Risk | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of lessees who made greater than 10% of lease rental | Lessee | 0 | 0 | 0 | ||||||
Accounts Receivable | Customer Concentration Risk | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of lessees that accounted for more than 10% of gross accounts receivable | Lease | 0 | 0 | |||||||
Total Fleet Lease Rental Income | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of customers having containers on-hire | Customer | 250 | ||||||||
Number of customer accounted for over 10% of lease rental income | Customer | 0 | 0 | 0 | ||||||
Total Fleet Lease Rental Income | Non United States Customers | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of company's gross accounts receivable | 95.60% | 94.90% | |||||||
Percentage of company's gross finance lease receivable | 97.50% | 98.40% | |||||||
Total Fleet Lease Rental Income | Customer Concentration Risk | Five Largest Customers | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of lease rental income | 50.00% | 49.50% | 49.50% | ||||||
Total Fleet Lease Rental Income | Customer Concentration Risk | Twenty Five Largest Container Lessees | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of lease rental income | 82.10% | 82.80% | 80.00% | ||||||
TL Revolving Credit Facility | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Write off of unamortized debt issuance cost | $ 529,000 | ||||||||
TMCL II Secured Debt Facility Amendment | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Write off of unamortized debt issuance cost | $ 238,000 | ||||||||
TMCL II Secured Debt Facility | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Write off of unamortized debt issuance cost | 6,516,000 | ||||||||
TL Term Loan | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Write off of unamortized debt issuance cost | 352,000 | ||||||||
Containers | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Asset impairment charges | $ 0 | 0 | 0 | ||||||
Impairment charges to write-off containers | 7,179,000 | 12,980,000 | 3,822,000 | ||||||
Containers for Sale | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Asset impairment charges | 14,238,000 | 13,795,000 | $ 4,250,000 | ||||||
Containers Held for Sale | Fair Value, Inputs, Level 2 | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Assets measured at fair value on non-recurring basis | 22,217,000 | $ 10,898,000 | |||||||
Forecast | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Amortization expense | $ 5,291,000 | ||||||||
TL | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Ownership percentage in TW Container Leasing, Ltd. | 50.10% | 25.00% | |||||||
Number of board of directors seats | Person | 2 | ||||||||
Common stock, voting rights | VotingRight | 2 | ||||||||
Tap Funding Limited | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Ownership percentage in TW Container Leasing, Ltd. | 49.90% | ||||||||
Number of board of directors seats | Person | 1 | ||||||||
Common stock, voting rights | VotingRight | 1 | ||||||||
Addition to equity carrying value as percentage ownership interest to derive purchase price | 6.00% | ||||||||
TW Container Leasing Limited | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Capital restructuring effective date | Oct. 1, 2018 | ||||||||
Reduction in noncontrolling interest | $ 30,438,000 | ||||||||
Increase in additional paid-in capital | $ 780,000 | ||||||||
Net income attributable to noncontrolling interests | 0 | ||||||||
TW Container Leasing Limited | TL | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of total common shares purchased | 75.00% | ||||||||
Cash consideration | $ 29,658,000 | ||||||||
WFC | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Ownership percentage in TW Container Leasing, Ltd. | 75.00% | ||||||||
TW | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Noncontrolling interest | $ 0 | ||||||||
Maximum | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Cash and cash equivalents, original maturity period | 3 months | ||||||||
Intangible assets, contract terms | 13 years | ||||||||
Estimated useful lives | 7 years | ||||||||
Minimum | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Intangible assets, contract terms | 11 years | ||||||||
Long term lease period | 5 years | ||||||||
Estimated useful lives | 3 years | ||||||||
Minimum | Operating Leases | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Contracts typical term | 5 years | ||||||||
Minimum | Tap Funding Limited | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of owned voting interest in the entity | 50.00% | ||||||||
[1] | Amounts for the years ended December 31, 2018 and 2017 have been reclassified to conform with 2019 presentation (see Note 1 (u) “Reclassifications and Changes in Presentation”). |
Schedule of Reconciliation of C
Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash Reported Within the Consolidated Statements (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Restricted Cash And Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 180,552 | $ 137,298 | $ 137,894 | |
Restricted cash included in long-term assets | 97,353 | 87,630 | 99,675 | |
Cash, cash equivalents and restricted cash, end of period | $ 277,905 | $ 224,928 | $ 237,569 | $ 142,123 |
Estimated Useful Lives and Resi
Estimated Useful Lives and Residual Value of Containers (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 7 years | |
Dry Containers Other Than Open Top And Flat Rack Containers, 20' | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 13 years | 13 years |
Estimated residual value | $ 1,000 | $ 1,000 |
Dry Containers Other Than Open Top And Flat Rack Containers, 40' | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 14 years | 14 years |
Estimated residual value | $ 1,200 | $ 1,200 |
Dry Containers Other Than Open Top And Flat Rack Containers, 40' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 13 years | 13 years |
Estimated residual value | $ 1,400 | |
Dry Containers Other Than Open Top And Flat Rack Containers, 40' High Cube | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated residual value | $ 1,350 | |
Dry Containers Other Than Open Top And Flat Rack Containers, 40' High Cube | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated residual value | $ 1,400 | |
Dry Containers Other Than Open Top And Flat Rack Containers, 45' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 13 years | 13 years |
Estimated residual value | $ 1,500 | $ 1,500 |
Refrigerated Containers, 20' | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 12 years | 12 years |
Estimated residual value | $ 2,750 | $ 2,750 |
Refrigerated Containers, 20' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 12 years | 12 years |
Estimated residual value | $ 2,049 | $ 2,049 |
Refrigerated Containers, 40' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 12 years | 12 years |
Estimated residual value | $ 4,000 | |
Refrigerated Containers, 40' High Cube | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated residual value | $ 4,000 | |
Refrigerated Containers, 40' High Cube | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated residual value | $ 4,500 | |
Open Top and Flat Rack Containers, 20' Folding Flat Rack | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 15 years | 15 years |
Estimated residual value | $ 1,300 | $ 1,300 |
Open Top And Flat Rack Containers, 40' Folding Flat Rack | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 16 years | 16 years |
Estimated residual value | $ 1,700 | $ 1,700 |
Open Top And Flat Rack Containers, 20' Open Top | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 15 years | 15 years |
Estimated residual value | $ 1,500 | $ 1,500 |
Open Top And Flat Rack Containers, 40' Open Top | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 14 years | 14 years |
Estimated residual value | $ 2,500 | $ 2,500 |
Tank containers | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 20 years | 20 years |
Estimated residential value, percentage of cost | 10.00% | 10.00% |
Schedule of Cost, Accumulated D
Schedule of Cost, Accumulated Depreciation and Net Book Value of the Company's Leasing Equipment by Equipment Type (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Containers, cost | $ 5,599,318 | $ 5,456,237 |
Containers, accumulated depreciation | (1,443,167) | (1,322,221) |
Containers, net book value | 4,156,151 | 4,134,016 |
Dry Containers Other Than Open Top And Flat Rack Containers, 20' | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 1,627,878 | 1,632,927 |
Containers, accumulated depreciation | (396,247) | (381,929) |
Containers, net book value | 1,231,631 | 1,250,998 |
Dry Containers Other Than Open Top And Flat Rack Containers, 40' | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 167,011 | 191,354 |
Containers, accumulated depreciation | (58,852) | (69,463) |
Containers, net book value | 108,159 | 121,891 |
Dry Containers Other Than Open Top And Flat Rack Containers, 40' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 2,510,937 | 2,376,975 |
Containers, accumulated depreciation | (592,374) | (540,349) |
Containers, net book value | 1,918,563 | 1,836,626 |
Dry Containers Other Than Open Top And Flat Rack Containers, 45' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 28,670 | 29,305 |
Containers, accumulated depreciation | (11,488) | (10,034) |
Containers, net book value | 17,182 | 19,271 |
Refrigerated Containers, 20' | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 20,484 | 20,883 |
Containers, accumulated depreciation | (7,258) | (6,153) |
Containers, net book value | 13,226 | 14,730 |
Refrigerated Containers, 20' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 5,139 | 5,148 |
Containers, accumulated depreciation | (3,090) | (2,714) |
Containers, net book value | 2,049 | 2,434 |
Refrigerated Containers, 40' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 1,052,707 | 1,030,078 |
Containers, accumulated depreciation | (338,068) | (279,661) |
Containers, net book value | 714,639 | 750,417 |
Open Top and Flat Rack Containers, 20' Folding Flat Rack | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 17,617 | 16,641 |
Containers, accumulated depreciation | (4,538) | (4,068) |
Containers, net book value | 13,079 | 12,573 |
Open Top And Flat Rack Containers, 40' Folding Flat Rack | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 51,152 | 46,182 |
Containers, accumulated depreciation | (17,278) | (16,052) |
Containers, net book value | 33,874 | 30,130 |
Open Top And Flat Rack Containers, 20' Open Top | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 13,259 | 13,152 |
Containers, accumulated depreciation | (1,625) | (1,419) |
Containers, net book value | 11,634 | 11,733 |
Open Top And Flat Rack Containers, 40' Open Top | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 23,313 | 27,629 |
Containers, accumulated depreciation | (4,351) | (5,086) |
Containers, net book value | 18,962 | 22,543 |
Tank containers | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 81,151 | 65,963 |
Containers, accumulated depreciation | (7,998) | (5,293) |
Containers, net book value | $ 73,153 | $ 60,670 |
Net Gain on Sale of Owned Fleet
Net Gain on Sale of Owned Fleet Containers (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Property | Dec. 31, 2018USD ($)Property | Dec. 31, 2017USD ($)Property | |
Property Plant And Equipment Disclosure [Line Items] | |||
Number of owned fleet containers sold | Property | 104,445 | 107,410 | 112,367 |
Gain on sale of owned fleet containers, net | $ | $ 21,397 | $ 36,071 | $ 26,210 |
Previously written down containers | |||
Property Plant And Equipment Disclosure [Line Items] | |||
Number of owned fleet containers sold | Property | 52,319 | 28,291 | 56,862 |
Gain on sale of owned fleet containers, net | $ | $ 6,665 | $ 14,563 | $ 18,662 |
Containers not written down | |||
Property Plant And Equipment Disclosure [Line Items] | |||
Number of owned fleet containers sold | Property | 52,126 | 79,119 | 55,505 |
Gain on sale of owned fleet containers, net | $ | $ 14,732 | $ 21,508 | $ 7,548 |
Schedule of Concentration Risk
Schedule of Concentration Risk of Lease Rental Income (Detail) - Lease Rental Income - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Customer A | |||
Concentration Risk [Line Items] | |||
Percentage of lease rental income | 15.40% | 14.00% | 14.40% |
Customer B | |||
Concentration Risk [Line Items] | |||
Percentage of lease rental income | 13.30% | 13.40% | 13.60% |
Schedule of Concentration Ris_2
Schedule of Concentration Risk of Gross Accounts Receivable From Owned Fleet (Detail) - Accounts Receivable - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Customer B | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 11.20% | 21.30% |
Customer A | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 17.10% | 10.70% |
Schedule of Concentration Ris_3
Schedule of Concentration Risk of Total Fleet Lease Rental Income (Detail) - Total Fleet Lease Rental Income - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Customer A | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 14.80% | 13.80% | 14.80% |
Customer B | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 13.50% | 13.70% | 14.30% |
Schedule of Concentration Ris_4
Schedule of Concentration Risk of Total Fleet Gross Accounts Receivable (Detail) - Gross Accounts Receivable - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Customer B | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 12.00% | 20.60% |
Customer A | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 16.60% | 10.40% |
Customers in Countries Outside
Customers in Countries Outside of U.S. Made up Greater Than 10% of Total Fleet Container Lease Billings (Detail) - Total Fleet Lease Rental Income | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
People's Republic of China | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 14.10% | 15.00% | 14.40% |
France | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 14.00% | 13.80% | 14.40% |
Switzerland | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 13.30% | 14.10% | 15.10% |
Taiwan | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 15.50% | 14.60% | 13.90% |
Singapore | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 11.10% | 10.50% | 10.90% |
Reconciliation of Numerator and
Reconciliation of Numerator and Denominator of Basic Earnings per Share ("EPS") with that of Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||
Net income attributable to Textainer Group Holdings Limited common shareholders | $ 56,724 | $ 50,378 | $ 19,365 |
Weighted average shares outstanding (in thousands): | |||
Basic | 57,349 | 57,200 | 56,845 |
Dilutive share options and restricted share units | 110 | 287 | 314 |
Weighted average common shares outstanding-- diluted | 57,459 | 57,487 | 57,159 |
Net income attributable to Textainer Group Holdings Limited common shareholders per common share | |||
Basic | $ 0.99 | $ 0.88 | $ 0.34 |
Diluted | $ 0.99 | $ 0.88 | $ 0.34 |
Share options and restricted share units, excluded from the computation of diluted EPS because they were anti-dilutive | 1,805 | 1,232 | 1,164 |
Summary of Assets and Liabiliti
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - Fair Value, Inputs, Level 2 - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | $ 135 | $ 5,555 |
Liabilities measured at fair value on a recurring basis | 13,778 | 3,639 |
Not designated as hedges | Interest rate swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 135 | 5,555 |
Liabilities measured at fair value on a recurring basis | 13,661 | $ 3,639 |
Designated as hedges | Interest rate swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value on a recurring basis | $ 117 |
Summary of Assets Measured at F
Summary of Assets Measured at Fair Value on Non-Recurring Basis (Detail) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Asset cumulative impairment charges | [1] | $ 6,346 | $ 5,129 |
Containers held for sale | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Asset cumulative impairment charges | [1],[2] | 6,346 | 5,129 |
Fair Value, Inputs, Level 2 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value on non-recurring basis | 22,217 | 10,898 | |
Fair Value, Inputs, Level 2 | Containers held for sale | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value on non-recurring basis | [2] | $ 22,217 | $ 10,898 |
[1] | Represents the cumulative net impairment charges recognized on equipment held for sale from the date of designated held for sale status to the indicated period end date. | ||
[2] | Represents the carrying value of containers included in “containers held for sale” in the consolidated balance sheets that have been impaired to write down the value of the containers to their estimated fair value less cost to sell. |
Immaterial Reclassification o_3
Immaterial Reclassification of Prior Period Presentation - Summary of Reclassification of Financial Statement Presentation in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Error Corrections And Prior Period Adjustments Restatement [Line Items] | ||||
Accounts receivable, net | [1] | $ 109,384 | $ 134,225 | |
Prepaid expenses and other current assets | [1] | 14,816 | 23,139 | |
Total current assets | 421,333 | 398,350 | ||
Total assets | 5,202,617 | 4,768,769 | $ 4,401,252 | |
Accounts payable and accrued expenses | [1] | (23,404) | (27,297) | |
Due to container investors, net | [1] | (21,978) | (30,672) | |
Total current liabilities | (299,845) | (292,587) | ||
Total liabilities | $ (3,916,972) | (3,532,778) | ||
As Reported | ||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | ||||
Accounts receivable, net | 110,222 | |||
Prepaid expenses and other current assets | 22,669 | |||
Total current assets | 373,877 | |||
Total assets | 4,744,296 | |||
Accounts payable and accrued expenses | (25,174) | |||
Due to container investors, net | (8,322) | |||
Total current liabilities | (268,114) | |||
Total liabilities | (3,508,305) | |||
Adjustment | ||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | ||||
Accounts receivable, net | 24,003 | |||
Prepaid expenses and other current assets | 470 | |||
Total current assets | 24,473 | |||
Total assets | 24,473 | |||
Accounts payable and accrued expenses | (2,123) | |||
Due to container investors, net | (22,350) | |||
Total current liabilities | (24,473) | |||
Total liabilities | $ (24,473) | |||
[1] | Certain amounts for the year ended December 31, 2018 have been reclassified to report the gross amounts of accounts receivable, prepaid expenses, accounts payable and accrued expenses arising from the managed fleet instead of the net presentation (see Note 2 “Immaterial Reclassification and Adjustment of Prior Periods” and Note 1 (u) “Reclassifications and Changes in Presentation “). |
Insurance Receivable and Impa_3
Insurance Receivable and Impairment - Additional Information (Detail) - USD ($) | 2 Months Ended | 12 Months Ended | |||
Feb. 28, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases Disclosure [Line Items] | |||||
Containers, net book value | $ 4,156,151,000 | $ 4,134,016,000 | |||
Lease loss recovery period by insurance | 183 days | ||||
Bad debt expense | 2,002,000 | 2,697,000 | $ 477,000 | ||
Gain on insurance recovery | $ 14,881,000 | 8,692,000 | |||
Insurance payment received | $ 9,814,000 | ||||
Insolvent Customer | |||||
Leases Disclosure [Line Items] | |||||
Lease loss recovery period by insurance | 183 days | ||||
Book value of containers that would not be recovered from insolvent customer | $ 9,468,000 | ||||
Insurance receivable | 1,792,000 | 0 | |||
Bad debt expense | 2,921,000 | 2,049,000 | |||
Recovery of direct costs | 1,383,000 | 4,864,000 | |||
Gain on insurance recovery | 1,488,000 | ||||
Insolvent Customer | Owned Containers | |||||
Leases Disclosure [Line Items] | |||||
Containers, net book value | 63,120,000 | 23,044,000 | |||
Insolvent Customer | Container Unrecoverable in Lessees Insolvency | |||||
Leases Disclosure [Line Items] | |||||
Asset impairment charges | $ 9,059,000 | $ 12,543,000 |
Insurance Receivable and Impa_4
Insurance Receivable and Impairment - Schedule of Insurance Receivable on Fleet (Detail) - Insolvent Customer - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases Disclosure [Line Items] | ||
Estimated unrecovered containers, net of insurance deductible | $ 409,000 | |
Recovery costs | 1,383,000 | $ 4,864,000 |
Insurance receivable related to this insolvent customer as of December 31, 2019 | $ 1,792,000 | $ 0 |
LAPCO Acquisition - Additional
LAPCO Acquisition - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |
Gain on settlement of pre-existing management agreement | $ 1,823 |
LAPCO Acquisition | |
Business Acquisition [Line Items] | |
Amount paid as cash consideration | 65,527 |
Cash paid to fully repay debt facility | 126,289 |
Transaction costs incurred to complete transaction | 104 |
Gain on settlement of pre-existing management agreement | 1,823 |
Cash on acquired net assets | 19,975 |
Containers and container-related assets on acquired net assets | 167,001 |
Working capital on acquired net assets | $ 6,767 |
Managed Container Fleet - Addit
Managed Container Fleet - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Deferred revenue from acquisition fees | $ 3,109 | $ 4,245 |
Containers, net book value | 4,156,151 | $ 4,134,016 |
Managed Containers | ||
Property, Plant and Equipment [Line Items] | ||
Containers, net book value | 16,151 | |
Containers, deemed financial liability | $ 17,449 |
Schedule of Company's Leasing E
Schedule of Company's Leasing Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Containers, cost | $ 5,599,318 | $ 5,456,237 |
Containers, accumulated depreciation | (1,443,167) | (1,322,221) |
Containers, net book value | 4,156,151 | 4,134,016 |
Containers - Owned Fleet | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 5,582,986 | 5,456,237 |
Containers, accumulated depreciation | (1,442,986) | (1,322,221) |
Containers, net book value | 4,140,000 | $ 4,134,016 |
Containers - Managed Fleet | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 16,332 | |
Containers, accumulated depreciation | (181) | |
Containers, net book value | $ 16,151 |
Summary of Total Lease Manageme
Summary of Total Lease Management Fee Income from Managed Fleet, Including Management Fees Earned from Acquisition Fees and Sales Commissions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||
Lease rental income - managed fleet | $ 101,901 | $ 111,342 | $ 104,566 |
Less: distribution expense to managed fleet container investors | (93,858) | (102,992) | (96,718) |
Less: depreciation and interest expense on managed containers purchased on or after January 1, 2019 | (394) | ||
Leasing | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 7,649 | 8,350 | 7,848 |
Other Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 7,590 | 8,529 | 7,146 |
Total Management Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 15,239 | $ 16,879 | $ 14,994 |
Summary of Reconciliation of Ac
Summary of Reconciliation of Accounts Receivable, Prepaid Expenses and Other Current Assets, Container Contracts Payable and Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation Of Current Assets And Liabilities [Line Items] | |||
Total accounts receivable | [1] | $ 109,384 | $ 134,225 |
Total prepaid expenses and other current assets | [1] | 14,816 | 23,139 |
Total accounts payable and accrued expenses | [1] | 23,404 | 27,297 |
Total container contracts payable | 9,394 | 42,710 | |
Owned Fleet | |||
Reconciliation Of Current Assets And Liabilities [Line Items] | |||
Total accounts receivable | 96,158 | 110,222 | |
Total prepaid expenses and other current assets | 14,627 | 22,669 | |
Total accounts payable and accrued expenses | 21,451 | 25,174 | |
Total container contracts payable | 9,394 | 42,710 | |
Managed Fleet | |||
Reconciliation Of Current Assets And Liabilities [Line Items] | |||
Total accounts receivable | 13,226 | 24,003 | |
Total prepaid expenses and other current assets | 189 | 470 | |
Total accounts payable and accrued expenses | $ 1,953 | $ 2,123 | |
[1] | Certain amounts for the year ended December 31, 2018 have been reclassified to report the gross amounts of accounts receivable, prepaid expenses, accounts payable and accrued expenses arising from the managed fleet instead of the net presentation (see Note 2 “Immaterial Reclassification and Adjustment of Prior Periods” and Note 1 (u) “Reclassifications and Changes in Presentation “). |
Transactions with Affiliates _3
Transactions with Affiliates and Container Investors - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transactions [Abstract] | ||
Due from affiliates, net | $ 1,880 | $ 1,692 |
Total Fees Earned from Manageme
Total Fees Earned from Management of the Containers, Including Acquisition Fees and Sales Commissions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Fees from affiliated Container Investors | $ 3,527 | $ 3,575 | $ 2,994 |
Fees from unaffiliated Container Investors | 11,374 | 11,334 | 10,073 |
Total Management Fees | |||
Related Party Transaction [Line Items] | |||
Management fees | 15,239 | 16,879 | 14,994 |
Total Management Fees | Fees from Container Investors | |||
Related Party Transaction [Line Items] | |||
Management fees | 14,901 | 14,909 | 13,067 |
Total Management Fees | Other Fees | |||
Related Party Transaction [Line Items] | |||
Management fees | $ 338 | $ 1,970 | $ 1,927 |
Summary of Due to Container Inv
Summary of Due to Container Investors, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Due to container investors, net | [1] | $ 21,978 | $ 30,672 |
Distributions due to container investors on lease rentals collected, net of container expenses paid and management fees | 10,516 | 8,322 | |
Affiliated Container Investors | |||
Related Party Transaction [Line Items] | |||
Due to container investors, net | 5,718 | ||
Unaffiliated Container Investors | |||
Related Party Transaction [Line Items] | |||
Due to container investors, net | 21,978 | 24,954 | |
Managed Fleet | |||
Related Party Transaction [Line Items] | |||
Accounts receivable | 13,226 | 24,003 | |
Prepaid expenses and other current assets | 189 | 470 | |
Accounts payable and accrued expenses | (1,953) | (2,123) | |
Due from to related party | $ 11,462 | $ 22,350 | |
[1] | Certain amounts for the year ended December 31, 2018 have been reclassified to report the gross amounts of accounts receivable, prepaid expenses, accounts payable and accrued expenses arising from the managed fleet instead of the net presentation (see Note 2 “Immaterial Reclassification and Adjustment of Prior Periods” and Note 1 (u) “Reclassifications and Changes in Presentation “). |
Schedule of Lease Rental Income
Schedule of Lease Rental Income (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessor Lease Description [Line Items] | |
Lease rental income - operating leases | $ 567,711 |
Interest income on net investment in direct financing and sales-type leases | 15,356 |
Interest income on container leaseback financing receivable | 10,313 |
Variable lease revenue | 26,380 |
Total lease rental income | 619,760 |
Owned Fleet | |
Lessor Lease Description [Line Items] | |
Lease rental income - operating leases | 470,722 |
Interest income on net investment in direct financing and sales-type leases | 15,356 |
Interest income on container leaseback financing receivable | 10,313 |
Variable lease revenue | 21,468 |
Total lease rental income | 517,859 |
Managed Fleet | |
Lessor Lease Description [Line Items] | |
Lease rental income - operating leases | 96,989 |
Variable lease revenue | 4,912 |
Total lease rental income | $ 101,901 |
Leases - Lessor - Additional In
Leases - Lessor - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Lessor Disclosure [Abstract] | |||
Direct financing and sales-type leases, (loss) gain | $ (1,027) | $ 802 | |
Payments on container leaseback financing receivable | 281,445 | ||
Container leaseback financing receivable | [1] | 271,658 | |
Allowance for doubtful accounts related to billed amounts under direct financing and sales-type leases and included in accounts receivable, net | $ 675 | $ 702 | |
[1] | As of December 31, 2019, two customers represented 82.9% and 17.1% of the Company’s container leaseback financing receivable portfolio. |
Schedule Future Minimum Lease P
Schedule Future Minimum Lease Payments Receivable (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Lessor Lease Description [Line Items] | |
2020 | $ 325,810 |
2021 | 234,393 |
2022 | 176,578 |
2023 | 138,419 |
2024 and thereafter | 260,738 |
Total future minimum lease payments receivable | 1,135,938 |
Owned Fleet | |
Lessor Lease Description [Line Items] | |
2020 | 294,320 |
2021 | 216,480 |
2022 | 169,623 |
2023 | 133,225 |
2024 and thereafter | 245,960 |
Total future minimum lease payments receivable | 1,059,608 |
Managed Fleet | |
Lessor Lease Description [Line Items] | |
2020 | 31,490 |
2021 | 17,913 |
2022 | 6,955 |
2023 | 5,194 |
2024 and thereafter | 14,778 |
Total future minimum lease payments receivable | $ 76,330 |
Summary of Future Minimum Payme
Summary of Future Minimum Payments Receivable Under Container Leaseback Financing Receivable (Detail) $ in Thousands | Dec. 31, 2019USD ($) | |
Lessor Disclosure [Abstract] | ||
2020 | $ 36,121 | |
2021 | 36,022 | |
2022 | 36,022 | |
2023 | 36,022 | |
2024 and thereafter | 198,027 | |
Total future minimum payments receivable | 342,214 | |
Add: residual value of containers | 35,703 | |
Less: unearned income | (106,259) | |
Container leaseback financing receivable | 271,658 | [1] |
Amounts due within one year | 20,547 | |
Container leaseback financing receivable | $ 251,111 | |
[1] | As of December 31, 2019, two customers represented 82.9% and 17.1% of the Company’s container leaseback financing receivable portfolio. |
Summary of Future Minimum Pay_2
Summary of Future Minimum Payments Receivable Under Container Leaseback Financing Receivable (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019Customer | |
Lessor Lease Description [Line Items] | |
Number of customers represented container leaseback financing receivable portfolio | 2 |
Customer One | |
Lessor Lease Description [Line Items] | |
Percentage of container leaseback financing receivable portfolio. | 82.90% |
Customer Two | |
Lessor Lease Description [Line Items] | |
Percentage of container leaseback financing receivable portfolio. | 17.10% |
Components of net Investment in
Components of net Investment in Direct Financing and Sales-Type Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Future minimum lease payments receivable | $ 385,589 | $ 196,041 | |
Residual value of containers | 11,143 | 11,393 | |
Less unearned income | (101,429) | (40,374) | |
Net investment in direct financing and sales-type leases | [1] | 295,303 | 167,060 |
Amounts due within one year | 40,940 | 39,270 | |
Amounts due beyond one year | $ 254,363 | $ 127,790 | |
[1] | (1) As of December 31, 2019, two major customers represented 44.3% and 16.1% of the Company’s direct financing and sales-type leases portfolio. As of December 31, 2018, three major customers represented 20.6%, 17.0% and 11.3% of the Company’s direct financing and sales-type leases portfolio. No other customer represented more than 10% of the Company’s direct financing and sales-type leases portfolio as of December 31, 2019 and 2018 |
Components of net Investment _2
Components of net Investment in Direct Financing and Sales-Type Leases (Parenthetical) (Detail) - Customer | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Capital Leased Assets [Line Items] | ||
Number of customers represent direct financing and sales-type leases portfolio | 2 | 3 |
Customer One | ||
Capital Leased Assets [Line Items] | ||
Percentage of direct financing and sales-type leases portfolio | 44.30% | 20.60% |
Customer Two | ||
Capital Leased Assets [Line Items] | ||
Percentage of direct financing and sales-type leases portfolio | 16.10% | 17.00% |
Customer Three | ||
Capital Leased Assets [Line Items] | ||
Percentage of direct financing and sales-type leases portfolio | 11.30% |
Future Minimum Lease Payments R
Future Minimum Lease Payments Receivable under Direct Financing and Sales-type Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2020 | $ 59,075 | |
2021 | 62,136 | |
2022 | 38,680 | |
2023 | 32,959 | |
2024 and thereafter | 192,739 | |
Total future minimum lease payments receivable | $ 385,589 | $ 196,041 |
Leases - Lessee - Additional In
Leases - Lessee - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee Lease Description [Line Items] | |||
Right-of-use lease assets | $ 11,276 | ||
Operating lease liabilities | 13,736 | ||
Rent expense | 2,233 | $ 2,049 | $ 3,432 |
Other Liabilities – Current | |||
Lessee Lease Description [Line Items] | |||
Lease liabilities current | 1,706 | ||
Other Liabilities – Non-Current | |||
Lessee Lease Description [Line Items] | |||
Long-term lease obligations | $ 12,030 |
Schedule of Other Information R
Schedule of Other Information Related to Operating Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee Disclosure [Abstract] | |||
Operating lease cost | $ 2,095 | ||
Short-term and variable lease cost | 138 | ||
Total rent expense | 2,233 | $ 2,049 | $ 3,432 |
Cash paid for amounts included in the measurement of lease liabilities | $ 2,098 | ||
Weighted-average remaining lease term | 5 years 4 months 24 days | ||
Discounted approximate incremental borrowing rate | 4.17% |
Minimum Lease Payment under Non
Minimum Lease Payment under Noncancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2020 | $ 2,232 |
2021 | 2,200 |
2022 | 2,039 |
2023 | 2,103 |
2024 and thereafter | 7,392 |
Total lease payments | 15,966 |
Less imputed interest | (2,230) |
Total operating lease liabilities | $ 13,736 |
Component of Income Tax Expense
Component of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||
Bermuda | $ 0 | $ 0 | $ 0 |
Foreign | 499 | 1,407 | 2,142 |
Current Income Tax Expense (Benefit), Total | 499 | 1,407 | 2,142 |
Deferred | |||
Bermuda | 0 | 0 | 0 |
Foreign | 1,449 | 618 | (524) |
Deferred Income Tax Expense (Benefit), Total | 1,449 | 618 | (524) |
Income tax (expense) benefit | $ 1,948 | $ 2,025 | $ 1,618 |
Components of Income Before Inc
Components of Income Before Income Taxes and Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Taxes [Line Items] | ||||
Income before income taxes and non controlling interest | [1] | $ 58,504 | $ 56,275 | $ 22,360 |
Foreign sources | ||||
Income Taxes [Line Items] | ||||
Income before income taxes and non controlling interest | $ 58,504 | $ 56,275 | $ 22,360 | |
[1] | (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized loss on derivative instruments, net of $15,442 and $5,790 for the years ended December 31, 2019 and 2018, respectively, and unrealized gain of $4,094 for the year ended December 31, 2017, and write-off of unamortized deferred debt issuance costs and bond discounts of $881 and $7,550 for the years ended December 31, 2018 and 2017, respectively. |
Reconciliation of Differences b
Reconciliation of Differences between Bermuda Statutory Income Tax Rate and Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Bermuda tax rate | 0.00% | 0.00% | 0.00% |
Foreign tax rate | 0.32% | (0.25%) | (5.80%) |
Tax uncertainties | 3.01% | 3.85% | 13.04% |
Income tax (expense) benefit, net | 3.33% | 3.60% | 7.24% |
Foreign tax rate | $ 188 | $ (142) | $ (1,297) |
Tax uncertainties | 1,760 | 2,167 | 2,915 |
Income tax (expense) benefit | $ 1,948 | $ 2,025 | $ 1,618 |
Components of Income Tax Expens
Components of Income Tax Expense and Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Tax Disclosure [Abstract] | ||||
Income before income taxes and non controlling interest | [1] | $ 58,504 | $ 56,275 | $ 22,360 |
Tax uncertainties | 1,760 | 2,167 | 2,915 | |
Stock based compensation | 405 | 128 | (304) | |
Adjustment for prior years | 270 | 367 | (71) | |
Revaluation of deferred taxes due to TCJA | (2,653) | |||
Foreign derived intangible income | (77) | (199) | ||
Valuation allowance | 315 | 272 | 1,166 | |
Foreign rate difference | (778) | (758) | 565 | |
Other | 53 | 48 | ||
Foreign taxes rate | 188 | (142) | (1,297) | |
Income tax (expense) benefit | $ 1,948 | $ 2,025 | $ 1,618 | |
Tax uncertainties | 3.01% | 3.85% | 13.04% | |
Stock based compensation | 0.69% | 0.23% | (1.36%) | |
Adjustment for prior years | 0.46% | 0.65% | (0.32%) | |
Revaluation of deferred taxes due to TCJA | (11.86%) | |||
Foreign derived intangible income | (0.13%) | (0.35%) | ||
Valuation allowance | 0.54% | 0.48% | 5.21% | |
Foreign rate difference | (1.33%) | (1.35%) | 2.53% | |
Other | 0.09% | 0.09% | ||
Foreign tax rate | 0.32% | (0.25%) | (5.80%) | |
Income tax (expense) benefit, net | 3.33% | 3.60% | 7.24% | |
[1] | (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized loss on derivative instruments, net of $15,442 and $5,790 for the years ended December 31, 2019 and 2018, respectively, and unrealized gain of $4,094 for the year ended December 31, 2017, and write-off of unamortized deferred debt issuance costs and bond discounts of $881 and $7,550 for the years ended December 31, 2018 and 2017, respectively. |
Significant Portions of Deferre
Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 19,410 | $ 19,616 |
Other | 1,568 | 2,173 |
Deferred tax assets, gross | 20,978 | 21,789 |
Valuation allowance (net operating loss) | (707) | (992) |
Deferred tax assets | 20,271 | 20,797 |
Deferred tax liabilities | ||
Containers, net | 25,975 | 25,039 |
Other | 697 | 710 |
Deferred tax liabilities | 26,672 | 25,749 |
Net deferred tax liabilities | $ 6,401 | $ 4,952 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Period for cumulative ownership change | 3 years | ||
Maximum percentage of taxable income allowed to offset by net operating loss carry-forwards per year | 80.00% | ||
Cumulative earnings undistributed | $ 33,976 | ||
Taxes payable current and noncurrent | $ 10,193 | ||
U.S. federal corporate tax rate | 0.00% | 0.00% | 0.00% |
Tax cuts and jobs act of 2017, change in tax rate, income tax expense (benefit) | $ 2,653 | ||
Tax cuts and jobs act of 2017, change in effective tax rate, favorably affected | 11.90% | ||
Limitation on deduction of interest expense in excess of adjusted taxable income, that may impact income taxes in, percent | 30.00% | ||
Limitation on utilization of net operating losses generated percent of foreign derived intangible income that may impact income taxes | 80.00% | ||
Percentage of EBITDA | 30.00% | ||
Limitation on deduction of interest expense on EBITDA expiration date | Dec. 31, 2021 | ||
Percentage of earnings before net interest and taxes after expiration date | 30.00% | ||
Unrecognized tax benefits | $ 19,642 | $ 18,145 | $ 16,150 |
Unrecognized tax benefits, if recognized, would reduce annual effective tax rate | 19,584 | ||
Estimated decrease in unrecognized tax benefits due to expiration of certain statutes of limitations in the next twelve months | 1,444 | ||
Income tax examination interest and penalty expense | 182 | 180 | $ 181 |
Income tax examination total accrued interest and penalties | $ 1,470 | $ 1,288 | |
United States | |||
Income Taxes [Line Items] | |||
U.S. federal corporate tax rate | 21.00% | 35.00% | |
U.S. Federal | |||
Income Taxes [Line Items] | |||
Net operating loss carry-forwards | $ 108,014 | ||
Net operating loss carry-forwards without expiration | $ 20,351 | ||
Minimum | |||
Income Taxes [Line Items] | |||
Cumulative ownership change percentage | 50.00% | ||
Minimum | U.S. Federal | |||
Income Taxes [Line Items] | |||
Net operating loss carry-forward expiration date | Dec. 31, 2020 | ||
Maximum | U.S. Federal | |||
Income Taxes [Line Items] | |||
Net operating loss carry-forward expiration date | Dec. 31, 2037 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Unrecognized Tax Benefit Amount (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Beginning Balance | $ 18,145 | $ 16,150 |
Increases related to prior year tax positions | 4 | |
Decreases related to prior year tax positions | (82) | (2) |
Increases related to current year tax positions | 2,922 | 3,131 |
Lapse of statute of limitations | (1,343) | (1,138) |
Ending Balance | $ 19,642 | $ 18,145 |
Debt Obligation (Detail)
Debt Obligation (Detail) - USD ($) $ in Thousands | Dec. 18, 2019 | Jul. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable | ||||||
Long term debt | $ 3,797,729 | $ 3,409,827 | ||||
Amount due within one year | 242,433 | 191,689 | ||||
Amounts due beyond one year | 3,555,296 | 3,218,138 | ||||
TL Revolving Credit Facility | ||||||
Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable | ||||||
Long term debt | $ 1,280,037 | $ 1,272,074 | ||||
Weighted average variable interest rate | 3.29% | 4.00% | ||||
Final Maturity | Sep. 30, 2023 | |||||
TL 2019 Term Loan | ||||||
Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable | ||||||
Long term debt | $ 158,371 | |||||
Weighted average variable interest rate | 3.50% | |||||
Fixed interest rate | 3.50% | |||||
Final Maturity | Dec. 23, 2026 | Dec. 31, 2026 | ||||
TMCL II Secured Debt Facility | ||||||
Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable | ||||||
Long term debt | [1] | $ 689,658 | $ 654,485 | |||
Weighted average variable interest rate | [1] | 3.49% | 4.36% | |||
Final Maturity | Jul. 23, 2026 | Jul. 31, 2026 | [1] | |||
TMCL V 2017-1 Bonds | ||||||
Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable | ||||||
Long term debt | $ 316,395 | $ 353,884 | ||||
Fixed interest rate | 3.91% | 3.91% | ||||
Final Maturity | May 31, 2042 | |||||
TMCL V 2017-2 Bonds | ||||||
Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable | ||||||
Long term debt | $ 395,836 | $ 435,838 | ||||
Fixed interest rate | 3.73% | 3.73% | ||||
Final Maturity | Jun. 30, 2042 | |||||
TMCL VI Term Loan | ||||||
Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable | ||||||
Long term debt | $ 249,421 | $ 276,210 | ||||
Weighted average variable interest rate | 4.30% | 4.30% | ||||
Final Maturity | Feb. 28, 2038 | |||||
TMCL VII 2018-1 Bonds | ||||||
Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable | ||||||
Long term debt | $ 227,624 | $ 245,399 | ||||
Fixed interest rate | 4.14% | 4.14% | ||||
Final Maturity | Jul. 31, 2043 | |||||
TMCL VII 2019-1 Bonds | ||||||
Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable | ||||||
Long term debt | $ 327,563 | |||||
Fixed interest rate | 4.02% | |||||
Final Maturity | Apr. 30, 2044 | |||||
TAP Funding Revolving Credit Facility | ||||||
Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable | ||||||
Long term debt | $ 152,824 | $ 171,937 | ||||
Weighted average variable interest rate | 3.69% | 4.41% | ||||
Final Maturity | Dec. 31, 2021 | |||||
[1] | Final maturity of the TMCL II Secured Debt Facility is based on the assumption that the facility will not be extended on its scheduled conversion date. |
Debt and Derivative Instrumen_3
Debt and Derivative Instruments - Additional Information (Detail) | Dec. 18, 2019USD ($) | Jul. 31, 2019 | Sep. 30, 2018USD ($) | Dec. 31, 2019USD ($)Installment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Apr. 24, 2019USD ($) | |
Debt Instrument [Line Items] | ||||||||
Assets | $ 5,202,617,000 | $ 4,768,769,000 | $ 4,401,252,000 | |||||
Write off of unamortized debt issuance cost | 0 | 84,000 | ||||||
Fair value liability of interest rate cap, collar and swap | 13,778,000 | 3,639,000 | ||||||
Fair value asset of interest rate cap, collar and swap | 135,000 | $ 5,555,000 | ||||||
Notional amounts | 1,030,500,000 | |||||||
Interest rate swaps | ||||||||
Debt Instrument [Line Items] | ||||||||
Notional amounts | 110,000 | |||||||
Designated | Interest rate swaps | ||||||||
Debt Instrument [Line Items] | ||||||||
Estimated amount to be reclassified from AOCI to interest expense | 210,000 | |||||||
Designated | Amortizing | Interest rate swaps | ||||||||
Debt Instrument [Line Items] | ||||||||
Notional amounts | $ 110,000,000 | |||||||
TL | Minimum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
LIBOR plus interest rate | 1.50% | |||||||
TL | Maximum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
LIBOR plus interest rate | 2.00% | |||||||
TMCL II Secured Debt Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate maximum commitment amount | $ 1,200,000,000 | |||||||
Advance rate for finance lease containers | 80.00% | 80.00% | ||||||
Debt conversion extended due date | Jul. 23, 2022 | |||||||
Final Maturity | Jul. 23, 2026 | Jul. 31, 2026 | [1] | |||||
LIBOR plus interest rate | 1.75% | |||||||
Write off of unamortized debt issuance cost | $ 6,516,000 | |||||||
Repayments of debt | $ 159,480,000 | |||||||
TMCL II Secured Debt Facility | TMCL | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount of borrowing based upon asset | 692,483,000 | |||||||
Assets | $ 920,170,000 | |||||||
TL Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Final Maturity | Sep. 30, 2023 | |||||||
Amount of borrowing based upon asset | $ 1,419,454,000 | |||||||
Write off of unamortized debt issuance cost | $ 529,000 | |||||||
Repayments of debt | 122,910,000 | |||||||
Letters of credit outstanding, amount | 0 | $ 0 | ||||||
TL Revolving Credit Facility | TL | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate maximum commitment amount | $ 1,500,000,000 | |||||||
Interest payment terms | The TL Revolving Credit Facility provides for payments of interest only during its term beginning on its inception date through September 2023 when all borrowings are due in full. | |||||||
Advance rate for finance lease containers | 83.00% | 83.50% | ||||||
TL Revolving Credit Facility | TL | Minimum | Eurodollar | ||||||||
Debt Instrument [Line Items] | ||||||||
LIBOR plus interest rate | 2.00% | |||||||
Write off of unamortized debt issuance cost | $ 529,000 | |||||||
TL Revolving Credit Facility | TL | Maximum | Eurodollar | ||||||||
Debt Instrument [Line Items] | ||||||||
LIBOR plus interest rate | 2.50% | |||||||
TL Revolving Credit Facility | TL | Letter of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate maximum commitment amount on letters of credit facility | $ 25,000,000 | |||||||
TL Revolving Credit Facility II | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate maximum commitment amount | $ 190,000,000 | |||||||
Interest payment terms | TL Revolving Credit Facility II provided for payments of interest only during its term beginning on its inception date through July 23, 2020, when all borrowings were due in full. | |||||||
Repayments of debt | 167,000,000 | |||||||
TAP Funding Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate maximum commitment amount | $ 190,000,000 | |||||||
Final Maturity | Dec. 31, 2021 | |||||||
LIBOR plus interest rate | 1.95% | |||||||
Assets | $ 204,235,000 | |||||||
Advance rate for finance lease containers | 80.00% | 80.00% | ||||||
TAP Funding Revolving Credit Facility | Tap Funding Limited | ||||||||
Debt Instrument [Line Items] | ||||||||
Assets | $ 157,603,000 | |||||||
TL 2019 Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate maximum commitment amount | $ 160,000,000 | |||||||
Final Maturity | Dec. 23, 2026 | Dec. 31, 2026 | ||||||
Debt instrument, term | 7 years | |||||||
Percentage bearing fixed interest | 3.50% | |||||||
Number of installment | Installment | 84 | |||||||
Proceeds from line of credit | $ 158,655,000 | |||||||
TL Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of debt | 332,000,000 | |||||||
Debt instrument, term | 5 years | |||||||
Bonds issued | $ 500,000,000 | |||||||
Write off unamortized debt issuance costs and bond discounts | $ 352,000 | |||||||
TL Term Loan | Minimum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
LIBOR plus interest rate | 1.58% | |||||||
TMCL VI Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate maximum commitment amount | $ 300,000,000 | |||||||
Final Maturity | Feb. 28, 2038 | |||||||
Amount of borrowing based upon asset | $ 252,122,000 | |||||||
Assets | $ 352,148,000 | |||||||
Interest payment terms | TMCL VI was required to maintain restricted cash balances on deposit in a designated bank account equal to nine months of interest expense on the TMCL VI Term Loan. | |||||||
Advance rate for finance lease containers | 77.10% | 77.10% | ||||||
TMCL V 2017-1 Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Final Maturity | May 31, 2042 | |||||||
Assets | $ 322,401,000 | |||||||
Percentage bearing fixed interest | 3.91% | 3.91% | ||||||
Principal amortization per year | $ 420,000,000 | |||||||
Target final payment date start | May 20, 2026 | |||||||
Target final payment date end | May 20, 2042 | |||||||
Bonds issued, percentage of par value | 75.20% | 75.20% | ||||||
TMCL V 2017-1 Bonds | Class A Secured Debt Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Bonds issued | $ 350,000,000 | |||||||
TMCL V 2017-1 Bonds | Class B Secured Debt Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Bonds issued | $ 70,000,000 | |||||||
TMCL V 2017-1 Bonds | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Scheduled payment term | 9 years | |||||||
TMCL V 2017-1 Bonds | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Scheduled payment term | 25 years | |||||||
TMCL V 2017-2 Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Final Maturity | Jun. 30, 2042 | |||||||
Assets | $ 402,722,000 | |||||||
Percentage bearing fixed interest | 3.73% | 3.73% | ||||||
Principal amortization per year | $ 500,000,000 | |||||||
Target final payment date start | Jun. 20, 2026 | |||||||
Target final payment date end | Jun. 20, 2042 | |||||||
Bonds issued, percentage of par value | 77.60% | 77.60% | ||||||
TMCL V 2017-2 Bonds | Class A Secured Debt Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Bonds issued | $ 416,000,000 | |||||||
TMCL V 2017-2 Bonds | Class B Secured Debt Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Bonds issued | $ 84,000,000 | |||||||
TMCL V 2017-2 Bonds | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Scheduled payment term | 9 years | |||||||
TMCL V 2017-2 Bonds | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Scheduled payment term | 25 years | |||||||
TMCL V's | ||||||||
Debt Instrument [Line Items] | ||||||||
Assets | $ 979,498,000 | |||||||
TMCL VII 2018-1 Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Final Maturity | Jul. 31, 2043 | |||||||
Assets | $ 230,477,000 | |||||||
Advance rate for finance lease containers | 80.60% | 82.50% | ||||||
Percentage bearing fixed interest | 4.14% | 4.14% | ||||||
Principal amortization per year | $ 259,100,000 | |||||||
Bonds issued, discount | $ 3,124,000 | |||||||
Number of quarterly installments | Both principal and interest incurred were payable monthly in arrears. | |||||||
Anticipated repayment date | 2025-07 | |||||||
Legal final payment | 2043-07 | |||||||
TMCL VII 2018-1 Bonds | Class A Secured Debt Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Bonds issued | $ 250,000,000 | |||||||
Bonds issued, percentage of par value | 98.82% | |||||||
TMCL VII 2018-1 Bonds | Class B Secured Debt Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Bonds issued | $ 9,100,000 | |||||||
Bonds issued, percentage of par value | 98.14% | |||||||
TMCL VII 2018-1 Bonds | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Scheduled payment term | 7 years | |||||||
TMCL VII 2018-1 Bonds | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Scheduled payment term | 25 years | |||||||
TMCL VII 2019-1 Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Final Maturity | Apr. 30, 2044 | |||||||
Assets | $ 329,908,000 | |||||||
Advance rate for finance lease containers | 82.60% | |||||||
Percentage bearing fixed interest | 4.02% | |||||||
Principal amortization per year | $ 350,000,000 | |||||||
Anticipated repayment date | 2026-10 | |||||||
Legal final payment | 2044-04 | |||||||
TMCL VII 2019-1 Bonds | Class A Secured Debt Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Bonds issued | $ 328,900,000 | |||||||
TMCL VII 2019-1 Bonds | Class B Secured Debt Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Bonds issued | $ 21,100,000 | |||||||
TMCL VII 2019-1 Bonds | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Scheduled payment term | 7 years 6 months | |||||||
TMCL VII 2019-1 Bonds | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Scheduled payment term | 25 years | |||||||
TMCL VII’s | ||||||||
Debt Instrument [Line Items] | ||||||||
Assets | $ 713,593,000 | |||||||
[1] | Final maturity of the TMCL II Secured Debt Facility is based on the assumption that the facility will not be extended on its scheduled conversion date. |
Future Scheduled Repayments (De
Future Scheduled Repayments (Detail) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||
2020 | $ 250,553,000 | [1] |
2021 | 537,636,000 | [1] |
2022 | 412,384,000 | [1] |
2023 | 1,283,377,000 | [1] |
2024 and thereafter | 1,343,345,000 | [1] |
Long Term Debt, Carrying Amount, Total | 3,827,295,000 | [1] |
Available Borrowing, as Limited by the Borrowing Base | 137,243,000 | [1] |
Current and Available Borrowing | 3,964,538,000 | [1] |
TL Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
2020 | 5,063,000 | |
2021 | 138,229,000 | |
2022 | 138,229,000 | |
2023 | 1,004,768,000 | |
Long Term Debt, Carrying Amount, Total | 1,286,289,000 | |
Available Borrowing, as Limited by the Borrowing Base | 133,165,000 | |
Current and Available Borrowing | 1,419,454,000 | |
TL 2019 Term Loan | ||
Debt Instrument [Line Items] | ||
2020 | 10,523,000 | |
2021 | 10,898,000 | |
2022 | 11,285,000 | |
2023 | 11,686,000 | |
2024 and thereafter | 115,608,000 | |
Long Term Debt, Carrying Amount, Total | 160,000,000 | |
Current and Available Borrowing | 160,000,000 | |
TMCL II Secured Debt Facility | ||
Debt Instrument [Line Items] | ||
2020 | 68,459,000 | |
2021 | 66,435,000 | |
2022 | 60,474,000 | |
2023 | 52,086,000 | |
2024 and thereafter | 447,052,000 | |
Long Term Debt, Carrying Amount, Total | 694,506,000 | |
Current and Available Borrowing | 694,506,000 | |
TMCL V 2017-1 Bonds | ||
Debt Instrument [Line Items] | ||
2020 | 39,357,000 | |
2021 | 52,173,000 | |
2022 | 63,220,000 | |
2023 | 62,557,000 | |
2024 and thereafter | 101,572,000 | |
Long Term Debt, Carrying Amount, Total | 318,879,000 | |
Current and Available Borrowing | 318,879,000 | |
TMCL V 2017-2 Bonds | ||
Debt Instrument [Line Items] | ||
2020 | 43,958,000 | [2] |
2021 | 55,259,000 | [2] |
2022 | 67,021,000 | [2] |
2023 | 80,125,000 | [2] |
2024 and thereafter | 152,584,000 | [2] |
Long Term Debt, Carrying Amount, Total | 398,947,000 | [2] |
Current and Available Borrowing | 398,947,000 | [2] |
TMCL VI Term Loan | ||
Debt Instrument [Line Items] | ||
2020 | 25,500,000 | |
2021 | 25,500,000 | |
2022 | 25,500,000 | |
2023 | 25,500,000 | |
2024 and thereafter | 149,400,000 | |
Long Term Debt, Carrying Amount, Total | 251,400,000 | |
Current and Available Borrowing | 251,400,000 | |
TMCL VII 2018-1 Bonds | ||
Debt Instrument [Line Items] | ||
2020 | 18,655,000 | [2] |
2021 | 18,655,000 | [2] |
2022 | 18,655,000 | [2] |
2023 | 18,655,000 | [2] |
2024 and thereafter | 157,796,000 | [2] |
Long Term Debt, Carrying Amount, Total | 232,416,000 | [2] |
Current and Available Borrowing | 232,416,000 | [2] |
TMCL VII 2019-1 Bonds | ||
Debt Instrument [Line Items] | ||
2020 | 28,000,000 | [2] |
2021 | 28,000,000 | [2] |
2022 | 28,000,000 | [2] |
2023 | 28,000,000 | [2] |
2024 and thereafter | 219,333,000 | [2] |
Long Term Debt, Carrying Amount, Total | 331,333,000 | [2] |
Current and Available Borrowing | 331,333,000 | [2] |
TAP Funding Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
2020 | 11,038,000 | |
2021 | 142,487,000 | |
Long Term Debt, Carrying Amount, Total | 153,525,000 | |
Available Borrowing, as Limited by the Borrowing Base | 4,078,000 | |
Current and Available Borrowing | $ 157,603,000 | |
[1] | Future scheduled payments for all debts exclude unamortized prepaid debt issuance costs in an aggregate amount of $27,088. | |
[2] | Future scheduled payments for the TMCL V 2017-2 Bonds, TMCL VII 2018-1 Bonds and TMCL VII 2019-1 Bonds exclude an unamortized discount of $45, $2,332 and $101, respectively. |
Future Scheduled Repayments (Pa
Future Scheduled Repayments (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
Prepaid debt issuance costs | $ 27,088 |
TMCL V 2017-2 Bonds | |
Debt Instrument [Line Items] | |
Debt instrument exclude an unamortized discount | 45 |
TMCL VII 2018-1 Bonds | |
Debt Instrument [Line Items] | |
Debt instrument exclude an unamortized discount | 2,332 |
TMCL VII 2019-1 Bonds | |
Debt Instrument [Line Items] | |
Debt instrument exclude an unamortized discount | $ 101 |
Summary of Derivative Instrumen
Summary of Derivative Instruments (Detail) | Dec. 31, 2019USD ($) |
Derivative [Line Items] | |
Notional amounts | $ 1,030,500,000 |
Interest rate swaps | |
Derivative [Line Items] | |
Notional amounts | 110,000 |
Non-designated | Interest rate swaps | Amortizing | |
Derivative [Line Items] | |
Notional amounts | 796,500,000 |
Non-designated | Interest rate cap | Non-Amortizing | |
Derivative [Line Items] | |
Notional amounts | 124,000,000 |
Designated | Interest rate swaps | Amortizing | |
Derivative [Line Items] | |
Notional amounts | $ 110,000,000 |
Summary of Derivative Instrum_2
Summary of Derivative Instruments (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Interest rate swaps | Non-designated | |
Derivative [Line Items] | |
Derivative term | through January 15, 2023 |
Interest rate swaps | Non-designated | Minimum | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 1.27% |
Interest rate swaps | Non-designated | Maximum | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 2.94% |
Interest rate swaps | Designated | |
Derivative [Line Items] | |
Derivative term | through April 15, 2023 |
Interest rate swaps | Designated | Minimum | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 1.57% |
Interest rate swaps | Designated | Maximum | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 1.58% |
Interest rate cap | Non-designated | |
Derivative [Line Items] | |
Derivative term | through September 15, 2022 |
Interest rate cap | Non-designated | Minimum | |
Derivative [Line Items] | |
Floor interest rate on derivative contracts | 3.00% |
Interest rate cap | Non-designated | Maximum | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 5.00% |
Summary of Pre-tax Impact of De
Summary of Pre-tax Impact of Derivative Instruments on Consolidated Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments Gain Loss [Line Items] | |||
Pre-tax impact of derivative instruments | $ 1,946 | $ 5,238 | $ (1,191) |
Realized gain (loss) on derivative instruments, net | Non-designated | |||
Derivative Instruments Gain Loss [Line Items] | |||
Pre-tax impact of derivative instruments | 1,939 | 5,238 | (1,191) |
Unrealized (loss) gain on derivative instruments, net | Non-designated | |||
Derivative Instruments Gain Loss [Line Items] | |||
Pre-tax impact of derivative instruments | (15,442) | $ (5,790) | $ 4,094 |
Other comprehensive loss | Designated | |||
Derivative Instruments Gain Loss [Line Items] | |||
Pre-tax impact of derivative instruments | (110) | ||
Interest and debt income (expense), net | Designated | |||
Derivative Instruments Gain Loss [Line Items] | |||
Pre-tax impact of derivative instruments | $ 7 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information Reconciled
Segment Information Reconciled to Income Before Income Tax and Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||
Lease rental income | $ 619,760 | $ 612,704 | $ 549,454 | |
Trading container margin | 7,398 | 3,450 | 1,456 | |
Gain on sale of owned fleet containers, net | 21,397 | 36,071 | 26,210 | |
Depreciation expense | [1] | 260,372 | 249,500 | 235,293 |
Container lessee default expense, net | [1] | 7,867 | 17,948 | 4,605 |
Interest expense | 153,185 | 138,427 | 117,475 | |
Write-off of unamortized deferred debt issuance costs and bond discounts | 881 | 7,550 | ||
Realized gain (loss) on derivative instruments, net | 1,946 | 5,238 | (1,191) | |
Unrealized (loss) gain on derivative instruments, net | (15,442) | (5,790) | 4,094 | |
Segment income (loss) before income tax and noncontrolling interests (1) | [2] | 58,504 | 56,275 | 22,360 |
Total assets | 5,202,617 | 4,768,769 | 4,401,252 | |
Purchase of containers and fixed assets | 433,677 | 766,006 | 419,222 | |
Payments on container leaseback financing receivable | 281,445 | |||
Owned Fleet | ||||
Segment Reporting Information [Line Items] | ||||
Lease rental income | 517,859 | 501,362 | 444,888 | |
Managed Fleet | ||||
Segment Reporting Information [Line Items] | ||||
Lease rental income | 101,901 | 111,342 | 104,566 | |
Container Ownership | ||||
Segment Reporting Information [Line Items] | ||||
Lease rental income | 516,307 | 498,414 | 442,219 | |
Gain on sale of owned fleet containers, net | 21,397 | 36,071 | 26,210 | |
Depreciation expense | 266,832 | 255,442 | 240,827 | |
Container lessee default expense, net | 7,867 | 17,948 | 4,605 | |
Interest expense | 152,914 | 138,427 | 117,475 | |
Write-off of unamortized deferred debt issuance costs and bond discounts | 881 | 7,550 | ||
Realized gain (loss) on derivative instruments, net | 1,946 | 5,238 | (1,191) | |
Unrealized (loss) gain on derivative instruments, net | (15,442) | (5,790) | 4,094 | |
Segment income (loss) before income tax and noncontrolling interests (1) | [2] | 14,296 | 26,166 | (1,707) |
Total assets | 5,101,301 | 4,648,938 | 4,316,272 | |
Purchase of containers and fixed assets | 420,971 | 765,297 | 418,288 | |
Payments on container leaseback financing receivable | 281,445 | |||
Container Ownership | Owned Fleet | ||||
Segment Reporting Information [Line Items] | ||||
Lease rental income | 516,307 | 498,414 | 442,219 | |
Container Management | ||||
Segment Reporting Information [Line Items] | ||||
Lease rental income | 103,453 | 114,290 | 107,235 | |
Depreciation expense | 916 | 794 | 776 | |
Interest expense | 271 | |||
Segment income (loss) before income tax and noncontrolling interests (1) | [2] | 27,747 | 20,322 | 15,376 |
Total assets | 184,215 | 152,801 | 160,899 | |
Purchase of containers and fixed assets | 12,706 | 709 | 934 | |
Container Management | Owned Fleet | ||||
Segment Reporting Information [Line Items] | ||||
Lease rental income | 1,552 | 2,948 | 2,669 | |
Container Management | Managed Fleet | ||||
Segment Reporting Information [Line Items] | ||||
Lease rental income | 101,901 | 111,342 | 104,566 | |
Container Resale | ||||
Segment Reporting Information [Line Items] | ||||
Trading container margin | 7,398 | 3,450 | 1,456 | |
Segment income (loss) before income tax and noncontrolling interests (1) | [2] | 21,036 | 16,128 | 10,854 |
Total assets | 19,573 | 45,110 | 10,873 | |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Segment income (loss) before income tax and noncontrolling interests (1) | [2] | (4,089) | (4,083) | (3,568) |
Total assets | 7,206 | 10,653 | 6,859 | |
Management Fees - Non-Leasing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 7,590 | 8,529 | 7,146 | |
Management Fees - Non-Leasing | External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 7,590 | 8,529 | 7,146 | |
Management Fees - Non-Leasing | Container Ownership | External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 219 | 235 | 266 | |
Management Fees - Non-Leasing | Container Management | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 48,215 | 48,646 | 39,529 | |
Management Fees - Non-Leasing | Container Management | External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,646 | 2,752 | 2,105 | |
Management Fees - Non-Leasing | Container Resale | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 12,323 | 12,132 | 9,477 | |
Management Fees - Non-Leasing | Container Resale | External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 5,725 | 5,542 | 4,775 | |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation expense | (7,376) | (6,736) | (6,310) | |
Segment income (loss) before income tax and noncontrolling interests (1) | [2] | (486) | (2,258) | 1,405 |
Total assets | (109,678) | (88,733) | (93,651) | |
Eliminations | Management Fees - Non-Leasing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ (60,538) | $ (60,778) | $ (49,006) | |
[1] | Amounts for the years ended December 31, 2018 and 2017 have been reclassified to conform with 2019 presentation (see Note 1 (u) “Reclassifications and Changes in Presentation”). | |||
[2] | (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized loss on derivative instruments, net of $15,442 and $5,790 for the years ended December 31, 2019 and 2018, respectively, and unrealized gain of $4,094 for the year ended December 31, 2017, and write-off of unamortized deferred debt issuance costs and bond discounts of $881 and $7,550 for the years ended December 31, 2018 and 2017, respectively. |
Segment Information Reconcile_2
Segment Information Reconciled to Income Before Income Tax and Noncontrolling Interest (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Unrealized (loss) gain on derivative instruments, net | $ (15,442) | $ (5,790) | $ 4,094 |
Write-off of unamortized deferred debt issuance costs and bond discounts | 881 | 7,550 | |
Container Ownership | |||
Segment Reporting Information [Line Items] | |||
Unrealized (loss) gain on derivative instruments, net | $ (15,442) | (5,790) | 4,094 |
Write-off of unamortized deferred debt issuance costs and bond discounts | $ 881 | $ 7,550 |
Segment Information Geographic
Segment Information Geographic Allocation of Lease Rental Income and Management Fees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Lease rental income | $ 619,760 | $ 612,704 | $ 549,454 |
Percent of Total, Lease rental income | 100.00% | 100.00% | 100.00% |
Percent of Total, Management fees | 100.00% | 100.00% | 100.00% |
Asia | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | $ 329,567 | $ 319,286 | $ 280,331 |
Percent of Total, Lease rental income | 53.20% | 52.10% | 51.00% |
Percent of Total, Management fees | 0.40% | 0.10% | 0.10% |
Bermuda | |||
Segment Reporting Information [Line Items] | |||
Percent of Total, Management fees | 60.20% | 51.80% | 43.40% |
Europe | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | $ 255,495 | $ 255,753 | $ 232,888 |
Percent of Total, Lease rental income | 41.20% | 41.70% | 42.40% |
Percent of Total, Management fees | 30.80% | 24.50% | 29.30% |
North / South America | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | $ 31,786 | $ 34,053 | $ 30,480 |
Percent of Total, Lease rental income | 5.10% | 5.60% | 5.50% |
Percent of Total, Management fees | 4.50% | 23.10% | 27.00% |
All other international | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | $ 2,912 | $ 3,612 | $ 5,755 |
Percent of Total, Lease rental income | 0.50% | 0.60% | 1.10% |
Percent of Total, Management fees | 4.10% | 0.50% | 0.20% |
Total Management Fees | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 15,239 | $ 16,879 | $ 14,994 |
Total Management Fees | Non Leasing From External Customers | |||
Segment Reporting Information [Line Items] | |||
Revenue | 7,590 | 8,529 | 7,146 |
Total Management Fees | Non Leasing From External Customers | Asia | |||
Segment Reporting Information [Line Items] | |||
Revenue | 28 | 7 | 4 |
Total Management Fees | Non Leasing From External Customers | Bermuda | |||
Segment Reporting Information [Line Items] | |||
Revenue | 4,576 | 4,418 | 3,100 |
Total Management Fees | Non Leasing From External Customers | Europe | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,334 | 2,089 | 2,097 |
Total Management Fees | Non Leasing From External Customers | North / South America | |||
Segment Reporting Information [Line Items] | |||
Revenue | 342 | 1,970 | 1,928 |
Total Management Fees | Non Leasing From External Customers | All other international | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 310 | $ 45 | $ 17 |
Segment Information Geographi_2
Segment Information Geographic Allocation of Trading Container Sales Proceeds and Gains on Sale of Owned Fleet Containers Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Gain on sale of owned fleet containers, net | $ 21,397 | $ 36,071 | $ 26,210 |
Percent of Total, Trading container sales proceeds | 100.00% | 100.00% | 100.00% |
Percent of Total, Gain on sale of containers, net | 100.00% | 100.00% | 100.00% |
Trading Containers | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 58,734 | $ 19,568 | $ 4,758 |
Asia | |||
Segment Reporting Information [Line Items] | |||
Gain on sale of owned fleet containers, net | $ 7,714 | $ 18,593 | $ 18,321 |
Percent of Total, Trading container sales proceeds | 67.30% | 67.00% | 70.40% |
Percent of Total, Gain on sale of containers, net | 36.00% | 51.50% | 69.90% |
Asia | Trading Containers | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 39,519 | $ 13,117 | $ 3,349 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Gain on sale of owned fleet containers, net | $ 5,577 | $ 9,622 | $ 2,994 |
Percent of Total, Trading container sales proceeds | 10.90% | 17.80% | 12.50% |
Percent of Total, Gain on sale of containers, net | 26.10% | 26.70% | 11.40% |
Europe | Trading Containers | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 6,411 | $ 3,487 | $ 593 |
North / South America | |||
Segment Reporting Information [Line Items] | |||
Gain on sale of owned fleet containers, net | $ 6,809 | $ 7,043 | $ 5,002 |
Percent of Total, Trading container sales proceeds | 21.80% | 14.80% | 17.20% |
Percent of Total, Gain on sale of containers, net | 31.80% | 19.50% | 19.10% |
North / South America | Trading Containers | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 12,788 | $ 2,893 | $ 816 |
Bermuda | |||
Segment Reporting Information [Line Items] | |||
Percent of Total, Gain on sale of containers, net | 0.00% | ||
All other international | |||
Segment Reporting Information [Line Items] | |||
Gain on sale of owned fleet containers, net | $ 1,297 | $ 813 | $ (107) |
Percent of Total, Trading container sales proceeds | 0.00% | 0.40% | 0.00% |
Percent of Total, Gain on sale of containers, net | 6.10% | 2.30% | (0.40%) |
All other international | Trading Containers | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 16 | $ 71 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Restricted Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 97,353 | $ 87,630 | $ 99,675 |
Other Restricted Cash Accounts | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Restricted cash | 84,531 | 77,491 | |
Trust Accounts | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 12,822 | $ 10,139 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) | Dec. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Line Items] | |
Containers orders placed | $ 7,835,000 |
Future minimum lease payment obligations | 15,966,000 |
Fleet Management Agreements | |
Commitments And Contingencies Disclosure [Line Items] | |
Future minimum lease payment obligations | $ 0 |
Share Option and Restricted S_3
Share Option and Restricted Share Unit Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 23, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options vest increments per year | 25.00% | |||
Total Compensation cost related to non-vested share option and restricted stock unit not yet recognized | $ 9,871 | |||
Total compensation cost related to non-vested shares and restricted stock to be recognized over weighted average period | 3 years | |||
Closing common share price | $ 10.71 | |||
Aggregate intrinsic value of all options exercisable and outstanding | $ 208 | |||
Aggregate intrinsic value of all options exercised | $ 4 | $ 83 | $ 241 | |
Weighted average contractual life of share options exercisable | 4 years 10 months 24 days | |||
Weighted average contractual life of share options outstanding | 4 years 10 months 24 days | |||
Weighted average grant date fair value of share options granted | $ 4.47 | $ 5.40 | $ 10.32 | |
Granted in 2010, 2011, 2012 and 2013 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee's restricted stock units vest increment per year | 25.00% | |||
Amendment | 2015 Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,500,000 | |||
Amendment | 2019 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,461,153 |
Summary of Activity in Two Thou
Summary of Activity in Two Thousand Nineteen Plan (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share options (common share equivalents) | |||
Beginning Balance | 1,703,908 | 1,524,677 | 1,431,813 |
Options granted during the period | 250,000 | 241,500 | 246,722 |
Options exercised during the period | (13,014) | (15,259) | (65,468) |
Options expired during the period | (113,917) | (9,552) | (45,638) |
Options forfeited during the period | (19,312) | (37,458) | (42,752) |
Ending Balance | 1,807,665 | 1,703,908 | 1,524,677 |
Options exercisable at period end | 1,209,237 | ||
Options vested and expected to vest at period end | 1,769,705 | ||
Weighted average exercise price | |||
Beginning Balance | $ 21.44 | $ 22.88 | $ 22.41 |
Options granted during the period | 9.14 | 11.15 | 22.75 |
Options exercised during the period | 9.70 | 8.49 | 14.67 |
Options expired during the period | 23.73 | 25.77 | 25.55 |
Options forfeited during the period | 14.08 | 17.61 | 16.04 |
Ending Balance | 19.76 | $ 21.44 | $ 22.88 |
Options exercisable at period end | 23.50 | ||
Options vested and expected to vest at period end | $ 19.94 | ||
Restricted Share Units | |||
Restricted share units | |||
Beginning Balance | 640,750 | 693,048 | 693,903 |
Share units granted during the period | 309,192 | 274,845 | 289,800 |
Share units vested during the period | (281,377) | (289,685) | (244,633) |
Share units forfeited during the period | (10,945) | (37,458) | (46,022) |
Ending Balance | 657,620 | 640,750 | 693,048 |
Share units outstanding and expected to vest at period end | 618,867 | ||
Weighted average grant date fair value | |||
Beginning Balance | $ 14.20 | $ 16.03 | $ 14.72 |
Share units granted during the period | 9.20 | 11.92 | 20.82 |
Share units vested during the period | 13.97 | 16.15 | 18.33 |
Share units forfeited during the period | 14.32 | 17.27 | 14.24 |
Ending Balance | 11.95 | $ 14.20 | $ 16.03 |
Share units outstanding and expected to vest at period end | $ 11.97 |
Summary of Information About Sh
Summary of Information About Share Options Exercisable and Outstanding (Detail) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share options exercisable, number of shares | shares | 1,209,237 |
Share options exercisable, weighted average exercise price | $ 23.50 |
Share options outstanding, number of shares | shares | 1,807,665 |
Share options outstanding, weighted average exercise price | $ 19.76 |
$9.13 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | $ 9.13 |
Share options outstanding, number of shares | shares | 243,500 |
Share options outstanding, weighted average exercise price | $ 9.13 |
$9.46 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | $ 9.46 |
Share options exercisable, number of shares | shares | 1,250 |
Share options exercisable, weighted average exercise price | $ 9.46 |
Share options outstanding, number of shares | shares | 5,000 |
Share options outstanding, weighted average exercise price | $ 9.46 |
$9.70 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | $ 9.70 |
Share options exercisable, number of shares | shares | 202,981 |
Share options exercisable, weighted average exercise price | $ 9.70 |
Share options outstanding, number of shares | shares | 271,742 |
Share options outstanding, weighted average exercise price | $ 9.70 |
$9.75 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | $ 9.75 |
Share options exercisable, number of shares | shares | 1,876 |
Share options exercisable, weighted average exercise price | $ 9.75 |
Share options outstanding, number of shares | shares | 3,750 |
Share options outstanding, weighted average exercise price | $ 9.75 |
$11.15 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | $ 11.15 |
Share options exercisable, number of shares | shares | 59,132 |
Share options exercisable, weighted average exercise price | $ 11.15 |
Share options outstanding, number of shares | shares | 233,125 |
Share options outstanding, weighted average exercise price | $ 11.15 |
$12.23 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | $ 12.23 |
Share options exercisable, number of shares | shares | 7,500 |
Share options exercisable, weighted average exercise price | $ 12.23 |
Share options outstanding, number of shares | shares | 10,000 |
Share options outstanding, weighted average exercise price | $ 12.23 |
$14.17 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | $ 14.17 |
Share options exercisable, number of shares | shares | 200,041 |
Share options exercisable, weighted average exercise price | $ 14.17 |
Share options outstanding, number of shares | shares | 200,041 |
Share options outstanding, weighted average exercise price | $ 14.17 |
$22.95 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | $ 22.95 |
Share options exercisable, number of shares | shares | 107,051 |
Share options exercisable, weighted average exercise price | $ 22.95 |
Share options outstanding, number of shares | shares | 211,101 |
Share options outstanding, weighted average exercise price | $ 22.95 |
$28.05 - $28.26 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share options exercisable, number of shares | shares | 196,507 |
Share options exercisable, weighted average exercise price | $ 28.12 |
Share options outstanding, number of shares | shares | 196,507 |
Share options outstanding, weighted average exercise price | $ 28.12 |
$28.05 - $28.26 | Minimum | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | 28.05 |
$28.05 - $28.26 | Maximum | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | $ 28.26 |
$28.54 - $38.36 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share options exercisable, number of shares | shares | 432,899 |
Share options exercisable, weighted average exercise price | $ 34.31 |
Share options outstanding, number of shares | shares | 432,899 |
Share options outstanding, weighted average exercise price | $ 34.31 |
$28.54 - $38.36 | Minimum | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | 28.54 |
$28.54 - $38.36 | Maximum | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | $ 38.36 |
Fair Value of Stock Option Gran
Fair Value of Stock Option Granted Assumptions Used (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rates | 1.70% | 2.90% | 2.20% |
Expected terms (in years) | 5 years 6 months | 5 years 6 months | 5 years 4 months 24 days |
Expected common share price volatilities | 52.90% | 49.80% | 47.40% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected forfeitures | 3.40% | 4.30% | 5.90% |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Aug. 31, 2019 | |
Equity Class Of Treasury Stock [Line Items] | ||
Common stock repurchased, shares | 878,637 | |
Common stock repurchased, average price per share | $ 9.75 | |
Common stock repurchased, value including commission paid | $ 8,597,000 | |
Maximum | ||
Equity Class Of Treasury Stock [Line Items] | ||
Common stock repurchased program, authorized amount | $ 25,000,000 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) | Feb. 07, 2020 | Feb. 06, 2020 | Mar. 30, 2020 | Aug. 31, 2019 |
Maximum | ||||
Subsequent Event [Line Items] | ||||
Common stock repurchased program, authorized amount | $ 25,000,000 | |||
Subsequent Event | Maximum | ||||
Subsequent Event [Line Items] | ||||
Common stock repurchased program, authorized amount | $ 50,000,000 | |||
Subsequent Event | Revolving Credit Facility | ||||
Subsequent Event [Line Items] | ||||
Aggregate maximum commitment amount | $ 155,000,000 | $ 190,000,000 | ||
Advance rate for finance lease containers | 78.00% | 80.00% |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Income (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating expenses: | |||
General and administrative expense | $ 38,142 | $ 44,317 | $ 39,677 |
Total operating expenses | 433,461 | 466,328 | 440,400 |
Loss from operations | 222,684 | 194,426 | 143,866 |
Other income: | |||
Net other expense | (164,180) | (138,151) | (121,506) |
Income tax benefit | (1,948) | (2,025) | (1,618) |
Net income attributable to Textainer Group Holdings Limited common shareholders | $ 56,724 | $ 50,378 | $ 19,365 |
Net income attributable to Textainer Group Holdings Limited common shareholders per share: | |||
Basic | $ 0.99 | $ 0.88 | $ 0.34 |
Diluted | $ 0.99 | $ 0.88 | $ 0.34 |
Weighted average shares outstanding (in thousands): | |||
Basic | 57,349 | 57,200 | 56,845 |
Diluted | 57,459 | 57,487 | 57,159 |
Other comprehensive income (loss): | |||
Change in derivative instruments designated as cash flow hedges | $ 110 | ||
Reclassification of realized gain on derivative instruments designated as cash flow hedges | 7 | ||
Comprehensive income attributable to Textainer Group Holdings Limited common shareholders | 56,649 | $ 50,251 | $ 19,572 |
Parent Company | |||
Operating expenses: | |||
General and administrative expense | 4,089 | 4,083 | 3,568 |
Total operating expenses | 4,089 | 4,083 | 3,568 |
Loss from operations | (4,089) | (4,083) | (3,568) |
Other income: | |||
Equity in net income of subsidiaries | 60,813 | 54,461 | 22,933 |
Net other expense | 60,813 | 54,461 | 22,933 |
Income before income tax | 56,724 | 50,378 | 19,365 |
Income tax benefit | 0 | 0 | 0 |
Net income attributable to Textainer Group Holdings Limited common shareholders | $ 56,724 | $ 50,378 | $ 19,365 |
Net income attributable to Textainer Group Holdings Limited common shareholders per share: | |||
Basic | $ 0.99 | $ 0.88 | $ 0.34 |
Diluted | $ 0.99 | $ 0.88 | $ 0.34 |
Weighted average shares outstanding (in thousands): | |||
Basic | 57,349 | 57,200 | 56,845 |
Diluted | 57,459 | 57,487 | 57,159 |
Other comprehensive income (loss): | |||
Change in derivative instruments designated as cash flow hedges | $ (110) | ||
Reclassification of realized gain on derivative instruments designated as cash flow hedges | (7) | ||
Foreign currency translation adjustments | 42 | $ (127) | $ 207 |
Comprehensive income attributable to Textainer Group Holdings Limited common shareholders | $ 56,649 | $ 50,251 | $ 19,572 |
Condensed Balance Sheets (Detai
Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current assets: | |||||
Cash and cash equivalents | $ 180,552 | $ 137,298 | $ 137,894 | ||
Prepaid expenses and other current assets | [1] | 14,816 | 23,139 | ||
Total current assets | 421,333 | 398,350 | |||
Total assets | 5,202,617 | 4,768,769 | 4,401,252 | ||
Current liabilities: | |||||
Accounts payable and accrued expenses | [1] | 23,404 | 27,297 | ||
Total current liabilities | 299,845 | 292,587 | |||
Textainer Group Holdings Limited shareholders' equity: | |||||
Common shares | 583 | 581 | |||
Treasury shares | (17,746) | (9,149) | |||
Additional paid-in capital | 410,595 | 406,083 | |||
Accumulated other comprehensive loss | (511) | (436) | |||
Retained earnings | 866,458 | 809,734 | |||
Total Textainer Group Holdings Limited shareholders’ equity | 1,259,379 | 1,206,813 | |||
Total liabilities and equity | 5,202,617 | 4,768,769 | |||
Parent Company | |||||
Current assets: | |||||
Cash and cash equivalents | 5,956 | 9,444 | $ 5,530 | $ 2,975 | |
Prepaid expenses and other current assets | 310 | 182 | |||
Due from affiliates, net | 638 | 687 | |||
Total current assets | 6,904 | 10,313 | |||
Investments in subsidiaries | [2] | 1,253,763 | 1,198,026 | ||
Total assets | 1,260,667 | 1,208,339 | |||
Current liabilities: | |||||
Accounts payable and accrued expenses | 476 | 713 | |||
Total current liabilities | 476 | 713 | |||
Textainer Group Holdings Limited shareholders' equity: | |||||
Common shares | 583 | 581 | |||
Treasury shares | (17,746) | (9,149) | |||
Additional paid-in capital | 411,407 | 406,896 | |||
Accumulated other comprehensive loss | (511) | (436) | |||
Retained earnings | [2] | 866,458 | 809,734 | ||
Total Textainer Group Holdings Limited shareholders’ equity | 1,260,191 | 1,207,626 | |||
Total liabilities and equity | $ 1,260,667 | $ 1,208,339 | |||
[1] | Certain amounts for the year ended December 31, 2018 have been reclassified to report the gross amounts of accounts receivable, prepaid expenses, accounts payable and accrued expenses arising from the managed fleet instead of the net presentation (see Note 2 “Immaterial Reclassification and Adjustment of Prior Periods” and Note 1 (u) “Reclassifications and Changes in Presentation “). | ||||
[2] | Certain amounts as of December 31, 2018 have been adjusted to defer acquisition fees of the managed fleet as earned over the deemed lease term (see Note 2 “Immaterial Reclassification of Prior Period Presentation”). |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities: | ||||
Net income attributable to Textainer Group Holdings Limited common shareholders | $ 56,556 | $ 54,250 | $ 20,742 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Share-based compensation expense | 4,388 | 7,355 | 6,083 | |
Decrease (increase) in: | ||||
Prepaid expenses and other current assets | [1],[2] | 8,693 | 12,072 | 10,114 |
Increase (decrease) in: | ||||
Accounts payable and accrued expenses | [1],[2] | (4,363) | 808 | (2,386) |
Total adjustments | 371,989 | 261,869 | 297,079 | |
Net cash provided by operating activities | 428,545 | 316,119 | 317,821 | |
Cash flows from investing activities: | ||||
Net cash used in investing activities | (761,792) | (736,787) | (152,210) | |
Cash flows from financing activities: | ||||
Purchase of treasury shares | (8,597) | |||
Issuance of common shares upon exercise of share options | 126 | 130 | 961 | |
Net cash provided by (used in) financing activities | 386,182 | 408,154 | (70,372) | |
Effect of exchange rate changes | 42 | (127) | 207 | |
Cash and cash equivalents, beginning of the year | 137,298 | 137,894 | ||
Cash and cash equivalents, end of the year | 180,552 | 137,298 | 137,894 | |
Parent Company | ||||
Cash flows from operating activities: | ||||
Net income attributable to Textainer Group Holdings Limited common shareholders | 56,724 | 50,378 | 19,365 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in net income of subsidiaries | (60,813) | (54,461) | (22,933) | |
Dividends received from subsidiaries | 46,823 | |||
Share-based compensation expense | 4,388 | 7,355 | 6,083 | |
Decrease (increase) in: | ||||
Prepaid expenses and other current assets | (128) | 34 | (43) | |
Increase (decrease) in: | ||||
Accounts payable and accrued expenses | (237) | 145 | (50) | |
Total adjustments | (9,967) | (46,927) | (16,943) | |
Net cash provided by operating activities | 46,757 | 3,451 | 2,422 | |
Cash flows from investing activities: | ||||
(Decrease) increase in investments in subsidiaries, net | (41,865) | 127 | (204) | |
Net cash used in investing activities | (41,865) | 127 | (204) | |
Cash flows from financing activities: | ||||
Purchase of treasury shares | (8,597) | |||
Issuance of common shares upon exercise of share options | 126 | 130 | 961 | |
Due to (from) affiliates, net | 49 | 333 | (831) | |
Net cash provided by (used in) financing activities | (8,422) | 463 | 130 | |
Effect of exchange rate changes | 42 | (127) | 207 | |
Net (decrease) increase in cash and cash equivalents | (3,488) | 3,914 | 2,555 | |
Cash and cash equivalents, beginning of the year | 9,444 | 5,530 | 2,975 | |
Cash and cash equivalents, end of the year | $ 5,956 | $ 9,444 | $ 5,530 | |
[1] | Amounts for the years ended December 31, 2018 and 2017 have been reclassified to conform with 2019 presentation (see Note 1 (u) “Reclassifications and Changes in Presentation”). | |||
[2] | Amounts for the years ended December 31, 2018 and 2017 have been reclassified to report the gross amounts of accounts receivable, prepaid expenses, accounts payable and accrued expenses arising from the managed fleet instead of the net presentation (see 2 “Immaterial Reclassification and Adjustment of Prior Periods” and Note 1 (u) “Reclassifications and Changes in Presentation “). |
Valuation Accounts (Detail)
Valuation Accounts (Detail) - Accounts receivable, allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Year | [1] | $ 5,729 | $ 7,632 | $ 40,415 | ||
Additions Charged to Expense | 2,096 | 3,574 | [1] | 1,201 | [1] | |
Deductions Credited and Write-Offs | (1,526) | (5,477) | [1] | (33,984) | [1] | |
Balance at End of Year | $ 6,299 | $ 5,729 | [1] | $ 7,632 | [1] | |
[1] | Amounts as of December 31, 2018 and 2017 have been reclassified to report the gross amounts of accounts receivable arising from the managed fleet instead of the net presentation (see Note 2 “Immaterial Reclassification of Prior Period Presentation”). |