Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
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 | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 50,495,789 |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Title of 12(b) Security | Common Shares, $0.01 par value |
Security Exchange Name | NYSE |
Entity File Number | 001-33725 |
Entity Incorporation, State or Country Code | D0 |
Entity Address, Address Line One | Century House |
Entity Address, Address Line Two | 16 Par-La-Ville Road |
Entity Address, City or Town | Hamilton |
Entity Address, Country | BM |
Entity Address, Postal Zip Code | HM 08 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Document Accounting Standard | U.S. GAAP |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | Textainer Group Holdings Limited |
Entity Address, Address Line Two | Century House |
Entity Address, City or Town | Hamilton |
Entity Address, Country | BM |
Entity Address, Postal Zip Code | HM 08 |
Contact Personnel Name | Michael J. Harvey |
Entity Address, Address Line Three | 16 Par-La-Ville Road |
City Area Code | 441 |
Local Phone Number | 296-2500 |
Contact Personnel Email Address | mjh@textainer.com |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Revenues: | |||||
Lease rental income | $ 600,873 | $ 619,760 | $ 612,704 | ||
Trading container margin | 3,532 | 7,398 | 3,450 | ||
Gain on sale of owned fleet containers, net | 27,230 | 21,397 | 36,071 | ||
Operating expenses: | |||||
Distribution expense to managed fleet container investors | 57,311 | 93,858 | 102,992 | ||
Depreciation expense | 261,665 | 260,372 | 249,500 | ||
Amortization expense | 2,572 | 2,093 | 3,721 | ||
General and administrative expense | 41,880 | 38,142 | 44,317 | ||
Bad debt (recovery) expense, net | (1,668) | 2,002 | 2,697 | ||
Container lessee default (recovery) expense, net | (1,675) | 7,867 | 17,948 | ||
Gain on insurance recovery and legal settlement | (14,881) | (8,692) | |||
Gain on settlement of pre-existing management agreement | (1,823) | ||||
Total operating expenses | 415,307 | 433,461 | 466,328 | ||
Income from operations | 221,599 | 222,684 | 194,426 | ||
Other (expense) income: | |||||
Interest expense | (123,230) | (153,185) | (138,427) | ||
Write-off of unamortized deferred debt issuance costs and bond discounts | (8,750) | (881) | |||
Interest income | 531 | 2,505 | 1,709 | ||
Realized (loss) gain on derivative instruments, net | (12,295) | 1,946 | 5,238 | ||
Unrealized loss on derivative instruments, net | (6,044) | (15,442) | (5,790) | ||
Other, net | 1,488 | (4) | |||
Net other expense | (148,300) | (164,180) | (138,151) | ||
Income before income tax and noncontrolling interests | 73,299 | [1] | 58,504 | [1] | 56,275 |
Income tax benefit (expense) | 374 | (1,948) | (2,025) | ||
Net income | 73,673 | 56,556 | 54,250 | ||
Less: Net (income) loss attributable to the noncontrolling interests | (851) | 168 | (3,872) | ||
Net income attributable to Textainer Group Holdings Limited common shareholders | $ 72,822 | $ 56,724 | $ 50,378 | ||
Net income attributable to Textainer Group Holdings Limited common shareholders per share: | |||||
Basic | $ 1.37 | $ 0.99 | $ 0.88 | ||
Diluted | $ 1.36 | $ 0.99 | $ 0.88 | ||
Weighted average shares outstanding (in thousands): | |||||
Basic | 53,271 | 57,349 | 57,200 | ||
Diluted | 53,481 | 57,459 | 57,487 | ||
Owned Fleet | |||||
Revenues: | |||||
Lease rental income | $ 538,425 | $ 517,859 | $ 501,362 | ||
Operating expenses: | |||||
Direct container expense - owned fleet | 55,222 | 45,831 | 53,845 | ||
Managed Fleet | |||||
Revenues: | |||||
Lease rental income | 62,448 | 101,901 | 111,342 | ||
Operating expenses: | |||||
Distribution expense to managed fleet container investors | 57,311 | 93,858 | 102,992 | ||
Management Fees - Non-Leasing | |||||
Revenues: | |||||
Revenue | 5,271 | 7,590 | 8,529 | ||
Trading Containers | |||||
Revenues: | |||||
Revenue | 31,941 | 58,734 | 19,568 | ||
Cost of trading containers sold | $ (28,409) | $ (51,336) | $ (16,118) | ||
[1] | (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized loss on derivative instruments, net of $ 6,044 , $ 15,442 and $5,790 for the years ended December 31, 2020 , 2019 and 201 8 , respectively , and write-off of unamortized deferred debt issuance costs and bond discounts of $ 8,750 , $ 0 and $ 881 for the years ended December 31, 2020, 2019 and 2018 , respectively. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Net income | $ 73,673 | $ 56,556 | $ 54,250 |
Other comprehensive income (loss), before tax: | |||
Change in derivative instruments designated as cash flow hedges | (12,307) | (110) | |
Reclassification of realized loss (gain) on derivative instruments designated as cash flow hedges | 2,806 | (7) | |
Foreign currency translation adjustments | 177 | 42 | (127) |
Comprehensive income, before tax | 64,349 | 56,481 | 54,123 |
Income tax benefit related to items of other comprehensive income (loss) | 91 | ||
Comprehensive income, after tax | 64,440 | 56,481 | 54,123 |
Comprehensive (income) loss attributable to the noncontrolling interests | (851) | 168 | (3,872) |
Comprehensive income attributable to Textainer Group Holdings Limited common shareholders | $ 63,589 | $ 56,649 | $ 50,251 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 131,018 | $ 180,552 |
Accounts receivable, net of allowance of $2,663 and $6,299, respectively | 108,578 | 109,384 |
Net investment in finance leases, net of allowance of $169 and $0, respectively | 78,459 | 40,940 |
Container leaseback financing receivable, net of allowance of $98 and $0, respectively | 27,076 | 20,547 |
Trading containers | 9,375 | 11,330 |
Containers held for sale | 15,629 | 41,884 |
Prepaid expenses and other current assets | 13,713 | 14,816 |
Due from affiliates, net | 1,509 | 1,880 |
Total current assets | 385,357 | 421,333 |
Restricted cash | 74,147 | 97,353 |
Containers, net of accumulated depreciation of $1,619,591 and $1,443,167, respectively | 4,125,052 | 4,156,151 |
Net investment in finance leases, net of allowance of $1,164 and $0, respectively | 801,501 | 254,363 |
Container leaseback financing receivable, net of allowance of $326 and $0, respectively | 336,792 | 251,111 |
Fixed assets, net of accumulated depreciation of $12,918 and $12,266, respectively | 746 | 1,128 |
Intangible assets, net of accumulated amortization of $47,931 and $45,359, respectively | 2,719 | 5,291 |
Derivative instruments | 47 | 135 |
Deferred taxes | 1,153 | 1,388 |
Other assets | 13,862 | 14,364 |
Total assets | 5,741,376 | 5,202,617 |
Current liabilities: | ||
Accounts payable and accrued expenses | 24,385 | 23,404 |
Container contracts payable | 231,647 | 9,394 |
Other liabilities | 2,288 | 2,636 |
Due to container investors, net | 18,697 | 21,978 |
Debt, net of unamortized costs of $8,043 and $8,120, respectively | 408,365 | 242,433 |
Total current liabilities | 685,382 | 299,845 |
Debt, net of unamortized costs of $18,639 and $21,446, respectively | 3,706,979 | 3,555,296 |
Derivative instruments | 29,235 | 13,778 |
Income tax payable | 10,047 | 9,909 |
Deferred taxes | 6,491 | 7,789 |
Other liabilities | 16,524 | 30,355 |
Total liabilities | 4,454,658 | 3,916,972 |
Textainer Group Holdings Limited shareholders' equity: | ||
Common shares, $0.01 par value. Authorized 140,000,000 shares; 58,740,919 shares issued and 50,495,789 shares outstanding at 2020; 58,326,555 shares issued and 56,817,918 shares outstanding at 2019 | 587 | 583 |
Treasury shares, at cost, 8,245,130 and 1,508,637 shares, respectively | (86,239) | (17,746) |
Additional paid-in capital | 416,609 | 410,595 |
Accumulated other comprehensive loss | (9,744) | (511) |
Retained earnings | 938,395 | 866,458 |
Total Textainer Group Holdings Limited shareholders’ equity | 1,259,608 | 1,259,379 |
Noncontrolling interest | 27,110 | 26,266 |
Total equity | 1,286,718 | 1,285,645 |
Total liabilities and equity | $ 5,741,376 | $ 5,202,617 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 2,663 | $ 6,299 |
Net investment in finance leases, allowance current | 169 | 0 |
Container leaseback financing receivable, allowance current | 98 | 0 |
Containers, accumulated depreciation | 1,619,591 | 1,443,167 |
Net investment in finance leases, allowance non current | 1,164 | 0 |
Container leaseback financing receivable, allowance non current | 326 | 0 |
Fixed assets, accumulated depreciation | 12,918 | 12,266 |
Intangible assets, accumulated amortization | 47,931 | 45,359 |
Debt, net of unamortized costs current | 8,043 | 8,120 |
Debt, net of unamortized costs non current | $ 18,639 | $ 21,446 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, Authorized | 140,000,000 | 140,000,000 |
Common shares, issued | 58,740,919 | 58,326,555 |
Common shares, outstanding | 50,495,789 | 56,817,918 |
Treasury shares, at cost, shares | 8,245,130 | 1,508,637 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect Period of Adoption Adjustment | Common shares | Treasury shares | Additional Paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Retained earningsCumulative Effect Period of Adoption Adjustment | Total Textainer Group Holdings Limited shareholders' equity | Total Textainer Group Holdings Limited shareholders' equityCumulative Effect Period of Adoption Adjustment | Noncontrolling interest | Noncontrolling interestCumulative Effect Period of Adoption Adjustment |
Beginning Balances at Dec. 31, 2017 | $ 1,206,037 | $ 578 | $ (9,149) | $ 397,821 | $ (309) | $ 759,356 | $ 1,148,297 | $ 57,740 | ||||
Beginning 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) | |||||||||
Total 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) loss on derivative instruments designated as cash flow hedges | (7) | (7) | (7) | |||||||||
Foreign currency translation adjustments | 42 | 42 | 42 | |||||||||
Total 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 (ASU 2016-03) at Dec. 31, 2019 | $ (892) | $ (885) | $ (885) | $ (7) | ||||||||
Ending Balances (in shares) at Dec. 31, 2019 | 58,326,555 | (1,508,637) | ||||||||||
Purchase of treasury shares | $ (68,493) | $ (68,493) | (68,493) | |||||||||
Purchase of treasury shares (in shares) | (6,736,493) | (6,736,493) | ||||||||||
Restricted share units vested | $ 3 | (3) | ||||||||||
Restricted share units vested (in shares) | 300,404 | |||||||||||
Exercise of share options | $ 1,295 | $ 1 | 1,294 | 1,295 | ||||||||
Exercise of share options (in shares) | 113,960 | 113,960 | ||||||||||
Share-based compensation expense | $ 4,723 | 4,723 | 4,723 | |||||||||
Comprehensive income: | ||||||||||||
Net income attributable to Textainer Group Holdings Limited common shareholders | 72,822 | 72,822 | 72,822 | |||||||||
Net income attributable to noncontrolling interests | 851 | 851 | ||||||||||
Change in derivative instruments designated as cash flow hedges | (12,307) | (12,307) | (12,307) | |||||||||
Foreign currency translation adjustments | 177 | 177 | 177 | |||||||||
Total comprehensive income | 64,440 | |||||||||||
Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges | 2,806 | 2,806 | 2,806 | |||||||||
Income tax benefit related to items of other comprehensive income | 91 | 91 | 91 | |||||||||
Ending Balances at Dec. 31, 2020 | $ 1,286,718 | $ 587 | $ (86,239) | $ 416,609 | $ (9,744) | $ 938,395 | $ 1,259,608 | $ 27,110 | ||||
Ending Balances (in shares) at Dec. 31, 2020 | 58,740,919 | (8,245,130) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 73,673 | $ 56,556 | $ 54,250 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 261,665 | 260,372 | 249,500 |
Bad debt (recovery) expense, net | (1,668) | 2,002 | 2,697 |
Container (recovery) write-off from lessee default, net | (260) | 7,179 | 12,980 |
Unrealized loss on derivative instruments, net | 6,044 | 15,442 | 5,790 |
Amortization and write-off of unamortized deferred debt issuance costs and accretion of bond discounts | 16,862 | 7,953 | 9,531 |
Amortization of intangible assets | 2,572 | 2,093 | 3,721 |
Gain on sale of owned fleet containers, net | (27,230) | (21,397) | (36,071) |
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 | 4,723 | 4,388 | 7,355 |
Decrease (increase) in: | |||
Accounts receivable, net | 11,539 | 25,530 | (34,113) |
Trading containers, net | 7,211 | 19,549 | (30,100) |
Receipt of payments on finance leases, net of income earned | 44,569 | 49,796 | 63,847 |
Interest portion of container leaseback financing receivable | (933) | (2,286) | |
Prepaid expenses and other current assets | 1,103 | 8,693 | 12,072 |
Due from affiliates, net | 371 | (39) | (558) |
Other assets | 502 | (10,000) | 1,603 |
Increase (decrease) in: | |||
Accounts payable and accrued expenses | 981 | (4,363) | 808 |
Other liabilities | (1,354) | 13,519 | (235) |
Due to container investors, net | (3,281) | (6,407) | 611 |
Long-term income tax payable | 138 | 339 | 489 |
Deferred taxes, net | (972) | 1,449 | 634 |
Total adjustments | 322,582 | 371,989 | 261,869 |
Net cash provided by operating activities | 396,255 | 428,545 | 316,119 |
Cash flows from investing activities: | |||
Purchase of containers and fixed assets | (746,145) | (466,993) | (854,383) |
Payments on container leaseback financing receivable | (116,263) | (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 | 151,021 | 150,742 | 147,254 |
Receipt of principal payments on container leaseback financing receivable | 21,485 | 7,745 | |
Net cash used in investing activities | (689,902) | (761,792) | (736,787) |
Cash flows from financing activities: | |||
Proceeds from debt | 2,114,260 | 1,439,223 | 2,029,025 |
Principal payments on debt | (1,799,870) | (1,049,857) | (1,608,753) |
Purchase of treasury shares | (68,493) | (8,597) | |
Proceeds from container leaseback financing liability, net | 17,448 | ||
Principal repayments on container leaseback financing liability, net | (12,825) | ||
Debt issuance costs | (13,637) | (9,417) | (10,252) |
Issuance of common shares upon exercise of share options | 1,295 | 126 | 130 |
Dividends paid to noncontrolling interest | (2,744) | (1,996) | |
Net cash provided by financing activities | 220,730 | 386,182 | 408,154 |
Effect of exchange rate changes | 177 | 42 | (127) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (72,740) | 52,977 | (12,641) |
Cash, cash equivalents and restricted cash, beginning of the year | 277,905 | 224,928 | 237,569 |
Cash, cash equivalents and restricted cash, end of the year | 205,165 | 277,905 | 224,928 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest expense and realized (loss) gain on derivative instruments, net | 126,958 | 142,248 | 123,581 |
Net income taxes paid | 34 | 42 | 1,138 |
Supplemental disclosures of noncash operating activities: | |||
Right-of-use asset for leased properties | 574 | 11,276 | |
Supplemental disclosures of noncash investing activities: | |||
Increase (decrease) in accrued container purchases | 222,253 | (33,316) | (88,377) |
Containers placed in finance leases | $ 635,004 | $ 173,856 | 53,859 |
Decrease in insurance receivable due to a decrease in estimated unrecoverable containers | $ 2,049 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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 operations. 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 3 “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 and finance 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 operations. On January 19, 2021, the Company completed the acquisition of 49.9% of the common shares of TAP Funding (see Note 14 “Subsequent Events”). Leased Assets Pool Company Limited On December 31, 2019, the Company completed the acquisition of Leased Assets Pool Company Limited (“LAPCO”) (a Bermuda company) from Trencor Limited 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 operations as “gain on settlement of pre-existing management agreement” during the year ended December 31, 2019. 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 I nvestors . As such, the Company is not the primary beneficiary and does not consolidate the Container I nvestors . Managed containers which are owned by Container I nvestors 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 (see Note 1 (a) “ Nature of Operations ” and Note 3 “Managed Container Fleet” ). 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, 2020 and 2019. All owned containers are pledged as collateral for debt as of December 31, 2020 and 2019. (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, South Africa, 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: 2020 2019 2018 Cash and cash equivalents $ 131,018 $ 180,552 $ 137,298 Restricted cash included in long-term assets 74,147 97,353 87,630 Cash, cash equivalents and restricted cash, end of period $ 205,165 $ 277,905 $ 224,928 (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 $0 and $2 during the years ended December 31, 2020 and 2019, respectively, for the management rights relinquished relating to the purchase of containers previously managed for a container investor. As of December 31, 2020, the aggregate future amortization of intangible assets of $2,719 is expected to amortize through year 2022. (e) Revenue Recognition The components of the Company’s revenue as presented in the consolidated statements of operations 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 operations (see Note 3 “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 finance 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 3 “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 (f) Allowance for Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326) Topic 842, Leases The Company adopted ASU 2016-13 and all related amendments on the effective date of January 1, 2020 using the modified retrospective method by recognizing the cumulative effect adjustment to the opening balance of retained earnings at the adoption date. Periods prior to the adoption date that are presented for comparative purposes are not adjusted. As a result of the adoption of ASU 2016-13, the Company recognized a beginning balance transition adjustment to the allowance for credit losses on January 1, 2020 of $892, with a cumulative effect adjustment to the opening balance of retained earnings in the consolidated balance sheet and consolidated statement of stockholder’s equity as of December 31, 2020. Accounts receivable, net investment in finance leases and container leaseback financing receivable are stated at amortized cost net of allowance for credit losses (see Note 6 “Allowance for Credit Losses” for further information). Accounts Receivables The Company maintains allowances, if necessary, for doubtful accounts against accounts receivables resulting from the inability of its lessees to make required payments related to billed amounts under the operating leases, finance leases, container leaseback financing receivable and for sales of owned fleet containers and trading containers. The allowance is developed based on two components: (1) specific reserves for receivables for which management believes full collection is doubtful; and (2) a general reserve for estimated losses inherent in the receivables. 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. The Company considers an account past due when a payment has not been received in accordance with the terms of the lease agreement, and 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. Net Investment in Finance Leases and Container Leaseback Financing Receivables The Company maintains allowances for credit losses against net investment in finance leases and container leaseback financing receivable related to unbilled amounts under the finance leases and the sales-type leaseback arrangements accounted for as financing receivable. The Company estimates its potential future expected credit losses based on historical losses from lessee defaults, current economic conditions and reasonable and supportable forecasts that may affect the collectability of the reported amount. The Company monitors its container lessees’ performance and its lease exposures on an ongoing basis. The Company evaluates its exposure by portfolio with similar risk characteristics based on the credit worthiness, external credit data and overall credit quality of its lessees. The Company’s internal risk rating categories are “Tier 1” for the lowest level of risk which are typically the large international shipping lines with strong financial and asset base; “Tier 2” for moderate level of risk which includes lessees which are well-established in the market; and “Tier 3” for the highest level of risk which includes smaller shipping lines or lessees that exhibit high volatility in payments on a regular basis. (g) Direct Container Expense 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. ( h ) 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 operations. 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. ( i ) 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. ( j ) 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 operations were $251, $393, and $1,085 for the years ended December 31, 2020, 2019 and 2018, 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. ( k ) Fixed Assets and Capitalized Implementation Costs 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. In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles - Goodwill and Other (Topic 350) - 2018-15 on January 1, 2020 using the prospective transition approach and t he implementation costs that were capitalized for the year ended December 31, 2020 amounted to $ 4,212 were included in “prepaid expenses and other current assets” in the Company’s consolidated balance sheet . Amortization of the capitalized implementation costs will commence when the hosting arrangement is ready for its intended use and will be amortized over the term of the hosting arrangement on a straight-line basis. ( l ) 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. To perform this assessment, the Company analyzed sales data over a minimum of a ten-year The Company estimates the useful lives and residual values of its containers to be as follows: As of December 31, 2020 and 2019 Estimated Residual life (years) Value Dry containers other than open top and flat rack containers: 20' 13 $ 1,000 40' 14 $ 1,200 40' high cube 13 $ 1,400 45' high cube 13 $ 1,500 Refrigerated containers: 20' 12 $ 2,750 20' high cube 12 $ 2,049 40' high cube 12 $ 4,000 Open top and flat rack containers: 20' folding flat rack 15 $ 1,300 40' folding flat rack 16 $ 1,700 20' open top 15 $ 1,500 40' open top 14 $ 2,500 Tank containers 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, 2020 and 2019 were as follows: 2020 2019 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Dry containers other than open top and flat rack containers: 20' $ 1,532,753 $ (428,913 ) $ 1,103,840 $ 1,627,878 $ (396,247 ) $ 1,231,631 40' 144,881 (55,154 ) 89,727 167,011 (58,852 ) 108,159 40' high cube 2,717,384 (672,416 ) 2,044,968 2,510,937 (592,374 ) 1,918,563 45' high cube 27,880 (12,747 ) 15,133 28,670 (11,488 ) 17,182 Refrigerated containers: 20' 20,164 (8,493 ) 11,671 20,484 (7,258 ) 13,226 20' high cube 2,605 (1,742 ) 863 5,139 (3,090 ) 2,049 40' high cube 1,103,817 (398,721 ) 705,096 1,052,707 (338,068 ) 714,639 Open top and flat rack containers: 20' folding flat 17,228 (5,132 ) 12,096 17,617 (4,538 ) 13,079 40' folding flat 49,167 (18,275 ) 30,892 51,152 (17,278 ) 33,874 20' open top 13,253 (1,790 ) 11,463 13,259 (1,625 ) 11,634 40' open top 22,271 (4,738 ) 17,533 23,313 (4,351 ) 18,962 Tank containers 93,240 (11,470 ) 81,770 81,151 (7,998 ) 73,153 $ 5,744,643 $ (1,619,591 ) $ 4,125,052 $ 5,599,318 $ (1,443,167 ) $ 4,156,151 See Note 3 “Managed Container Fleet” for information on the managed fleet containers included above. 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, 2020, 2019 and 2018. 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 a gain on container recovery of $1,644 during the year ended December 31, 2020 due to a settlement agreement with an insolvent lessee on containers which were previously written off in 2018. The Company recorded impairment (recoveries) charges during the years ended December 31, 2020, 2019 and 2018 of $(1,647), $7,179 and $12,980, respectively, to write-off containers that were unlikely to be recovered from lessees in default, net of gains of $1,647, $1,988 and $0 associated with recoveries on containers previously estimated as lost with lessees in default for the years ended December 31, 2020, 2019 and 2018, respectively. These amounts are recorded in the consolidated statements of operations as “container lessee default (recovery) 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 types of containers in the locations in which the containers are stored. 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, 2020 , 2019 and 2018 , the Company recorded container impairments of $ 11,094 , $ and $ , 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 . The impairment charges are included in “depreciation expense” in the consolidated statements of operations . During the years ended December 31, 2020, 2019 and 2018, 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 operations: 2020 2019 2018 Units Amount Units Amount Units Amount Gain on sale of previously written down owned fleet containers, net 51,541 $ 15,451 52,319 $ 6,665 28,291 $ 14,563 Gain on sale of owned fleet containers not written down, net 54,807 11,779 52,126 14,732 79,119 21,508 Gain on sale of owned fleet containers, net 106,348 $ 27,230 104,445 $ 21,397 107,410 $ 36,071 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. (m) 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. ( n ) 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 operations . In 2020 , 2019 and 2018 , debt issuance costs of $ 13,637 , $ and $ , respectively, were capitalized and amortization of debt issuance costs of $ 7,712 , $ and $ 8,400 , 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 un |
Insurance Receivable and Impair
Insurance Receivable and Impairment | 12 Months Ended |
Dec. 31, 2020 | |
Loss Contingency [Abstract] | |
Insurance Receivable and Impairment | (2) 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 in the consolidated statements of operations in the consolidated statements of operations during the year ended December 31, 2019 . During the year ended December 31, 2020, the Company received $3,091 of cash collection from this insolvent customer, including payments for previously reserved outstanding accounts receivable. An insurance receivable of $2,106 and $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, 2020 and 2019, respectively. As of December 31, 2020, the Company had not yet submitted a final insurance claim which is pending the results of its review of the insolvent customer’s restructuring plan. The restructuring plan was approved by the bankruptcy court on November 4, 2020. As of December 31, 2020, the bankruptcy settlement amount is not determinable and realizable. 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 Recovery costs 314 Insurance receivable related to this insolvent customer as of December 31, 2020 $ 2,106 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 (recovery) expense, net” In 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 2019. Accordingly, the Company recorded a $8,692 gain on insurance recovery and legal settlement in the consolidated statements of operations 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 operations . |
Managed Container Fleet
Managed Container Fleet | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Managed Container Fleet | (3) 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, 2020 and 2019, deferred revenue from acquisition fees amounted to $1,049 and $3,109, respectively, which were reported as “accounts payable and accrued expenses” in the consolidated balance sheets. 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, 2020 and 2019. 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, 2020 and 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. During the year ended December 31, 2020, the Company paid $12,515 in cash to purchase the previously managed containers from a Container Investor which resulted in the extinguishment of the deemed financial liability. As a result of the settlement of the container leaseback financial liability, the management agreement between the Company and the Container Investor was terminated. As of December 31, 2020 and 2019, the Company’s deemed container leaseback financial liability to the Container Investors amounted to $4,762 and $17,449, respectively, which were reported as "other liabilities” in the consolidated balance sheet. The Company’s container leasing equipment for the owned and managed fleet as of December 31, 2020 and 2019, were as follows: 2020 2019 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Containers - owned fleet $ 5,740,717 $ (1,619,304 ) $ 4,121,413 $ 5,582,986 $ (1,442,986 ) $ 4,140,000 Containers - managed fleet 3,926 (287 ) 3,639 16,332 (181 ) 16,151 Total containers $ 5,744,643 $ (1,619,591 ) $ 4,125,052 $ 5,599,318 $ (1,443,167 ) $ 4,156,151 Total management fee income from the managed fleet, including management fees earned from acquisition fees and sales commissions during 2020, 2019 and 2018 were as follows (also, see Note 4 “Transactions with Affiliates and Container Investors”): 2020 2019 2018 Lease rental income - managed fleet $ 62,448 $ 101,901 $ 111,342 Less: distribution expense to managed fleet container investors (57,311 ) (93,858 ) (102,992 ) Less: depreciation and interest expense on managed containers purchased on or after January 1, 2019 (730 ) (394 ) — Management fees from leasing 4,407 7,649 8,350 Management fees from non-leasing services 5,271 7,590 8,529 Total management fees $ 9,678 $ 15,239 $ 16,879 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, the Company is required to remit accounts receivable from lessees of the managed fleet to the Container Investors once paid in accordance with the terms of the management agreements. The Company’s consolidated balance sheets also include the prepaid expenses and accounts payable and accrued expenses related to the containers managed by the Company for the Container Investors. The following table provides a reconciliation of the balance sheet accounts from the managed fleet to the total amount as of December 31, 2020 and 2019 in the consolidated balance sheets (also, see Note 4 “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. 2020 2019 Accounts receivable - owned fleet $ 97,950 $ 96,158 Accounts receivable - managed fleet 10,628 13,226 Total accounts receivable $ 108,578 $ 109,384 Prepaid expenses and other current assets - owned fleet $ 13,614 $ 14,627 Prepaid expenses and other current assets - managed fleet 99 189 Total prepaid expenses and other current assets $ 13,713 $ 14,816 Accounts payable and accrued expenses - owned fleet $ 23,198 $ 21,451 Accounts payable and accrued expenses - managed fleet 1,187 1,953 Total accounts payable and accrued expenses $ 24,385 $ 23,404 Container contracts payable - owned fleet $ 231,647 $ 9,394 Total container contracts payable $ 231,647 $ 9,394 |
Transactions with Affiliates an
Transactions with Affiliates and Container Investors | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates and Container Investors | (4) Transactions with Affiliates and Container Investors Due from affiliates, net of $1,509 and $1,880, as of December 31, 2020 and 2019, respectively, represents lease rentals on tank containers collected on behalf of and payable to the Company from the Company’s tank container manager, net of direct container expenses and management fees Total management fees earned from the Company’s managed fleet, including acquisition fees and sales commissions during 2020, 2019 and 2018 were as follows: 2020 2019 2018 Fees from affiliated Container Investors $ — $ 3,527 $ 3,575 Fees from unaffiliated Container Investors 9,678 11,374 11,334 Fees from Container Investors 9,678 14,901 14,909 Other fees — 338 1,970 Total management fees $ 9,678 $ 15,239 $ 16,879 The following table provides a summary of due to container investors, net at December 31, 2020 and 2019: 2020 2019 Accounts receivable - managed fleet $ 10,628 $ 13,226 Prepaid expenses and other current assets - managed fleet 99 189 Accounts payable and accrued expenses - managed fleet (1,187 ) (1,953 ) 9,540 11,462 Distributions due to container investors on lease rentals collected, net of container expenses paid and management fees 9,157 10,516 Due to container investors, net $ 18,697 $ 21,978 There is no due to affiliated Container Investors as of December 31, 2020 and 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | (5) Leases (a) Lessor The Company’s lease rental income for the years ended December 31, 2020 and 2019 were as follows: 2020 2019 Owned Managed Total Owned Managed Total Lease rental income - operating leases $ 469,109 $ 58,175 $ 527,284 $ 470,722 $ 96,227 $ 566,949 Interest income on net investment in finance leases 30,121 — 30,121 15,356 — 15,356 Interest income on container leaseback financing receivable 17,243 — 17,243 10,313 — 10,313 Variable lease revenue 21,952 4,273 26,225 21,468 5,674 27,142 Total lease rental income $ 538,425 $ 62,448 $ 600,873 $ 517,859 $ 101,901 $ 619,760 Variable lease revenue includes other charges set forth in the leases, such as handling fees, pick-up and drop-off charges and charges for damage protection plan. For finance leases, the net selling loss 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 $144 and $1,027 for the years ended December 31, 2020 and 2019, respectively, are included in “gain on sale of owned fleet containers, net” in the consolidated statements of operations. 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, 2020: Owned Managed Total Year ending December 31: 2021 361,495 32,769 394,264 2022 302,704 19,173 321,877 2023 258,275 16,081 274,356 2024 198,781 12,119 210,900 2025 and thereafter 314,207 19,380 333,587 Total future minimum lease payments receivable $ 1,435,462 $ 99,522 $ 1,534,984 Container Leaseback Financing Receivable The Company’s container leaseback financing receivable pertains to containers purchased that were leased back 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 following table represents the components of the container leaseback financing receivable as of December 31, 2020 and 2019: 2020 2019 Future minimum payments receivable $ 505,473 $ 377,917 Less: unearned income (141,181 ) (106,259 ) Container leaseback financing receivable (1) 364,292 $ 271,658 Less: Allowance for credit losses (424 ) — Container leaseback financing receivable, net $ 363,868 $ 271,658 Amounts due within one year 27,076 20,547 Amounts due beyond one year 336,792 251,111 Container leaseback financing receivable, net $ 363,868 $ 271,658 (1) As of December 31, 2020, two customers represented 89.7% and 10.3% of the Company’s container leaseback financing receivable portfolio. As of December 31, 2019, two customers represented 82.9% and 17.1% of the Company’s container leaseback financing receivable portfolio. Net Investment in Finance Leases The following table represents the components of the net investment in finance leases as of December 31, 2020 and 2019: 2020 2019 Future minimum lease payments receivable $ 1,216,086 $ 385,589 Residual value of containers 12,601 11,143 Less: unearned income (347,394 ) (101,429 ) Net investment in finance leases (1) $ 881,293 $ 295,303 Less: Allowance for credit losses (1,333 ) — Net investment in finance leases, net $ 879,960 $ 295,303 Amounts due within one year $ 78,459 $ 40,940 Amounts due beyond one year 801,501 254,363 Net investment in finance leases, net $ 879,960 $ 295,303 (1) As of December 31, 2020, two major customers represented 80.1% and 8.6% of the Company’s finance lease portfolio. As of December 31, 2019, two major customers represented 44.3% and 16.1% of the Company’s finance lease portfolio. No other customer represented more than 10% of the Company’s finance leases portfolio as of December 31, 2020 and 2019. The following is a schedule by year of future minimum lease payments receivable under container leaseback financing receivable and net investment in finance leases as of December 31, 2020: Year ending December 31: Container Leaseback Financing Receivable Net Investment in Finance Leases Total 2021 $ 47,819 $ 126,661 $ 174,480 2022 47,819 109,333 157,152 2023 47,819 103,757 151,576 2024 43,723 97,527 141,250 2025 and thereafter 318,293 778,808 1,097,101 Total future minimum lease payments receivable $ 505,473 $ 1,216,086 $ 1,721,559 (b) Lessee Right-of-use (“ROU”) lease assets and lease liability are recognized for the Company’s office space leases 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. As of December 31, 2020 and 2019, operating leases included in ROU lease assets amounted to $10,331 and $11,276, respectively, which were reported in “other assets” in the consolidated balance sheets. As of December 31, 2020 and 2019, total lease liabilities amounted to $12,636 and $13,736, respectively, of which amounts due within one year of $1,779 and $1,706, respectively, were reported in “other liabilities – current.” Long-term lease obligations that are due beyond one year of $10,857 and $12,030, respectively, were reported in “other liabilities – non-current” in the consolidated balance sheets. Operating lease expense is recognized on a straight-line basis over the lease term and is reported in “general and administrative expense” in the consolidated statements of operations. Rent expense amounted to $2,231, $2,233 and $2,049 during 2020, 2019 and 2018, respectively. Other information related to the Company's operating leases are as follows: 2020 2019 Operating lease cost $ 2,103 $ 2,095 Short-term and variable lease cost 128 138 Total rent expense $ 2,231 $ 2,233 Cash paid for amounts included in the measurement of lease liabilities $ 2,221 $ 2,098 2020 2019 Weighted-average remaining lease term 4.8 years 5.4 years Weighted-average discount rate 4.6% 4.2% Future minimum lease payment obligations under the Company’s noncancelable operating leases at December 31, 2020 were as follows: Operating leasing Year ending December 31: 2021 2,273 2022 2,253 2023 2,328 2024 2,305 2025 and thereafter 5,236 Total minimum lease payments 14,395 Less imputed interest (1,759 ) Total present value of operating lease liabilities $ 12,636 |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2020 | |
Allowance For Credit Loss [Abstract] | |
Allowance for Credit Losses | (6) Allowance for Credit Losses The Company’s allowance for credit losses is estimated based on historical losses, current economic conditions, and ongoing review of the credit worthiness, but not limited to, each lessee’s payment history, lessee credit ratings, management’s current assessment of each lessee’s financial condition and the recoverability. Accounts Receivable The Company maintains allowances, if necessary, for doubtful accounts against accounts receivables resulting from the inability of its lessees to make required payments related to billed amounts under the operating leases, finance leases, container leaseback financing receivable, sales of owned fleet containers and trading containers. The allowance for credit losses included in accounts receivable, net, amounted to $2,663 and $6,299 as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, the Company does not have an allowance for credit losses related to the billed amounts under the container leaseback financing receivable and does not have any past due balances relating to such transactions. As of December 31, 2020 and 2019, the allowance for credit losses related to the billed amounts under the finance leases and included in accounts receivable, net, amounted to $735 and $675, respectively. Net Investment in Finance Leases and Container Leaseback Financing Receivable The Company maintains allowances for credit losses against net investment in finance leases and container leaseback financing receivable related to unbilled amounts under the finance leases and the sales-type leaseback arrangements accounted for as financing receivable. The allowance for credit losses related to unbilled amounts under finance leases and included in net investment in finance leases, net, amounted to $1,333 as of December 31, 2020. The allowance for credit losses related to unbilled amounts under the financing arrangements and included in container leaseback financing receivable, net, amounted to $424 as of December 31, 2020. The Company evaluates its exposure by portfolio with similar risk characteristics based on the credit worthiness, external credit data and overall credit quality of its lessees. As of December 31, 2020, the Company’s net investment in finance leases and container leaseback financing receivable are primarily comprised of the largest shipping lines under “Tier 1” risk rating which represented 86.4% and 89.7%, respectively, of the Company’s portfolio (see Note (f) “Nature of Business and Summary of Significant Accounting Policies” for description of internal risk ratings). The following table presents the net investment in finance leases and container leaseback financing receivable by internal credit rating category and year of origination as of December 31, 2020: Year Ended December 31, 2020 2019 2018 2017 2016 Prior Total Tier 1 $ 571,226 $ 111,206 $ 35,580 $ 7,221 $ — $ 36,625 $ 761,858 Tier 2 40,657 37,176 21,164 53 5,153 3,505 107,708 Tier 3 2,624 7,145 1,132 — 42 784 11,727 Net investment in finance leases $ 614,507 $ 155,527 $ 57,876 $ 7,274 $ 5,195 $ 40,914 $ 881,293 Tier 1 $ 113,383 $ 213,386 $ — $ — $ — $ — $ 326,769 Tier 2 — 37,523 — — — — 37,523 Tier 3 — — — — — — — Container leaseback financing receivable $ 113,383 $ 250,909 $ — $ — $ — $ — $ 364,292 Allowance for Credit Losses Subsequent changes in the estimated allowance for credit losses are recognized in “bad debt expense, net” in the consolidated statements of operations. Subsequent changes in the estimated allowance for credit losses relating to the accounts receivable from managed container fleet are recognized in “distribution expense to managed fleet container investors” in the consolidated statements of operations (See Note 3 “Managed Container Fleet” for further information). The changes in the carrying amount of the allowance for credit losses during the year ended December 31, 2020 are as follows: Accounts Receivable Net Investment in Finance Leases Container Leaseback Financing Receivable Total Allowance for Credit Losses Balance as of December 31, 2019 $ 6,299 $ — $ — $ 6,299 Impact of adopting ASU 2016-13 on January 1, 2020 — 636 256 892 Additions charged to expense (recovery), net (3,149 ) 697 168 (2,284 ) Write-offs (487 ) — — (487 ) Balance as of December 31, 2020 $ 2,663 $ 1,333 $ 424 $ 4,420 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) 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 2020, 2019 and 2018 consisted of the following: 2020 2019 2018 Current Bermuda — $ — $ — Foreign 446 499 1,407 446 499 1,407 Deferred Bermuda — — — Foreign (819 ) 1,449 618 (819 ) 1,449 618 $ (374 ) $ 1,948 $ 2,025 The components of income before income taxes and noncontrolling interest were as follows: 2020 2019 2018 Bermuda sources $ — $ — $ — Foreign sources 73,299 58,504 56,275 $ 73,299 $ 58,504 $ 56,275 A reconciliation of the differences between the Bermuda statutory income tax rate and the effective tax rate as provided in the consolidated statements of operations is as follows: 2020 2019 2018 Bermuda tax rate $ — 0.00 % $ — 0.00 % $ — 0.00 % Foreign tax rate (1,291 ) (1.76 )% 188 0.32 % (142 ) (0.25 )% Tax uncertainties 917 1.25 % 1,760 3.01 % 2,167 3.85 % $ (374 ) (0.51 )% $ 1,948 3.33 % $ 2,025 3.60 % The components of income tax expense and effective tax rate were as follows: 2020 2019 2018 Income before income tax and noncontrolling interests $ 73,299 $ 58,504 $ 56,275 Tax uncertainties $ 917 1.25 % $ 1,760 3.01 % $ 2,167 3.85 % Foreign taxes Stock base compensation 8 0.01 % 405 0.69 % 128 0.23 % Adjustment for prior years 47 0.06 % 270 0.46 % 367 0.65 % Foreign derived intangible income (112 ) (0.15 )% (77 ) (0.13 )% (199 ) (0.35 )% Valuation allowance 67 0.09 % 315 0.54 % 272 0.48 % Foreign rate difference (1,333 ) (1.82 )% (778 ) (1.33 )% (758 ) (1.35 )% Other 32 0.04 % 53 0.09 % 48 0.09 % (1,291 ) (1.76 )% 188 0.32 % (142 ) (0.25 )% $ (374 ) (0.51 )% $ 1,948 3.33 % $ 2,025 3.60 % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2020 and 2019 are presented below: 2020 2019 Deferred tax assets Net operating loss carryforwards $ 19,284 $ 19,410 Other 1,457 1,568 20,741 20,978 Valuation allowance (382 ) (707 ) Deferred tax assets 20,359 20,271 Deferred tax liabilities Containers, net 25,043 25,975 Other 654 697 Deferred tax liabilities 25,697 26,672 Net deferred tax liabilities $ 5,338 $ 6,401 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. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief and Economic Security Act ("CARES Act"). The enactment of the CARES Act does not result in any material adjustments to the Company’s provision for income taxes. The Company has U.S. federal net operating loss carry-forwards of $106,151 that will begin to expire from December 31, 2021 through December 31, 2037 if not utilized and $25,279 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, 2020, cumulative earnings of approximately $41,441 would be subject to income taxes of approximately $12,432 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 201 5 , 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 . A reconciliation of the beginning and ending unrecognized tax benefit amounts for 2020 and 2019 are as follows: 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 Increases related to prior year tax positions 19 Increases related to current year tax positions 2,357 Lapse of statute of limitations (1,444 ) Balance at December 31, 2020 $ 20,575 If the unrecognized tax benefits of $20,575 at December 31, 20120 were recognized, tax benefits in the amount of $20,511 would reduce our annual effective tax rate. The Company believes the total amount of unrecognized tax benefit as of December 31, 2020 will decrease by $1,457 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 2020, 2019 and 2018 amounted to $(11), $182 and $180, respectively. Total accrued interest and penalties as of December 31, 2020 and 2019 were $1,460 and $1,470, respectively, and were included in non-current income taxes payable. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | (8) Debt The following represents the Company’s debt obligations as of December 31, 2020 and 2019: 2020 2019 Outstanding Average Interest Outstanding Average Interest Final Maturity TL Revolving Credit Facility $ 1,433,919 1.65 % $ 1,280,037 3.29 % September 2023 TL 2019 Term Loan 148,131 3.50 % 158,371 3.50 % December 2026 TMCL II Secured Debt Facility (1) 646,551 1.91 % 689,658 3.49 % July 2026 TMCL VI Term Loan 223,630 4.29 % 249,421 4.30 % February 2038 TMCL VII 2019-1 Bonds 300,305 4.02 % 327,563 4.02 % April 2044 TMCL VII 2020-1 Bonds 429,600 3.07 % — 0.00 % August 2045 TMCL VII 2020-2 Bonds 587,183 2.26 % — 0.00 % September 2045 TMCL VII 2020-3 Bonds 214,168 2.15 % — 0.00 % September 2045 TAP Funding Revolving Credit Facility 131,857 2.11 % 152,824 3.69 % December 2021 TMCL V 2017-1 Bonds — 0.00 % 316,395 3.91 % May 2042 TMCL V 2017-2 Bonds — 0.00 % 395,836 3.73 % June 2042 TMCL VII 2018-1 Bonds — 0.00 % 227,624 4.14 % July 2043 Total debt obligations $ 4,115,344 $ 3,797,729 Amount due within one year $ 408,365 $ 242,433 Amounts due beyond one year $ 3,706,979 $ 3,555,296 (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. The Company’s debt facilities are secured by specific pools of containers and related assets owned by the Company. The Company’s debt agreements contain various restrictive financial and other covenants related to leverage, interest coverage, fixed charge coverage, container sales proceeds ratio, net income and debt levels and consolidated tangible net worth, including limitations on certain liens, indebtedness and investments. All of the Company’s debt facilities contain restrictive covenants on borrowing base minimums. Under the terms of the debt agreements, the total outstanding principal may not exceed an amount that is calculated as the total of the eligible containers designated to the respective facility times a certain advance rate, then plus the restricted cash amount (the “Asset Base”). For secured debt and revolving credit facilities, the total outstanding principal may not exceed the lesser of the commitment amount or the Asset Base. TGH and its subsidiaries were in full compliance with these restrictive covenants as of December 31, 2020. 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. The interest rate, payable monthly in arrears, is one-month LIBOR plus spread of 1.75% during the revolving period prior to the conversion date. 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. 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. In July 2020, TL entered into an amendment of the TL Revolving Credit Facility which revised certain of the covenants and restrictions. The TL Revolving Credit Facility contains cross default provisions that may result in an acceleration of principal repayment under the debt facility if an uncured default condition were to exist. TGH acts as an unconditional guarantor of the TL Revolving Credit Facility. (b) TAP Funding TAP Funding had a credit agreement, that provides for a revolving credit facility with an aggregate commitment amount of up to $155,000 (the “TAP Funding Revolving Credit Facility”). There was a commitment fee on the unused amount of the total commitment, payable monthly in arrears. Interest on the outstanding amount due under the TAP Funding Revolving Credit Facility was based on one-month LIBOR plus 1.95%, payable monthly in arrears. In February 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. In February 2021, the Company fully repaid and terminated the TAP Funding Revolving Credit Facility (see Note 14 Term Loan (a) TL TL has a $160,000 fixed rate term loan (the “TL 2019 Term Loan”) with a group of financial institutions. Interest on the outstanding amount due under the TL 2019 Term Loan is based on a fixed rate of 3.50% per annum, payable monthly in arrears. In July 2020, TL entered into an amendment of the TL 2019 Term Loan which revised certain of the covenants and restrictions. The TL 2019 Term Loan also contains cross default provisions that may result in an acceleration of principal repayment under the debt facility if an uncured default condition were to exist. (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. Under the terms of the TMCL VI Term Loan, both principal and interest incurred are payable monthly. Bonds Payable (a) TMCL V TMCL V 2017-1 Bonds. 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. Under the terms of the TMCL V 2017-1 Bonds, both principal and interest incurred were payable monthly. In August 2020, TMCL V 2017-1 Bonds was terminated and fully repaid by proceeds from the TMCL VII 2020-1 Bonds. TMCL V 2017-2 Bonds. 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. Under the terms of the TMCL VII 2020-2 Bonds, both principal and interest incurred were payable monthly. In September 2020, TMCL V 2017-2 Bonds was terminated and fully repaid by proceeds from the TMCL VII 2020-2 Bonds. (b) TMCL VII TMCL VII 2018-1 Bonds. 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”). Under the terms of the TMCL VII 2018-1 Bonds, both principal and interest incurred were payable monthly. In September 2020, TMCL VII 2018-1 Bonds was terminated and fully repaid by proceeds from the TMCL VII 2020-3 Bonds. TMCL VII 2019-1 Bonds. TMCL VII 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. Under the terms of the TMCL VII 2019-1 Bonds, both principal and interest incurred are payable monthly. TMCL VII 2020-1 Bonds. In August 2020, TMCL VII issued $380,800 of aggregate Class A principal amount and $69,200 of aggregate Class B principal amount of the Series 2020-1 Fixed Rate Asset Backed Notes (the “TMCL VII 2020-1 Bonds”). Under the terms of the TMCL VII 2020-1 Bonds, both principal and interest incurred are payable monthly. Proceeds from the TMCL VII 2020-1 Bonds were primarily used to pay off the TMCL V 2017-1 Bonds and pay down debt in our secured debt facility and revolving credit facility. TMCL VII 2020-2 Bonds. In September 2020, TMCL VII issued $531,600 of aggregate Class A principal amount and $76,200 of aggregate Class B principal amount of the Series 2020-2 Fixed Rate Asset Backed Notes (“the TMCL VII 2020-2 Bonds”). Under the terms of the TMCL VII 2020-2 Bonds, both principal and interest incurred are payable monthly. Proceeds from the TMCL VII 2020-2 Bonds were primarily used to pay off the TMCL V 2017-2 Bonds and pay down debt in our secured debt facility and revolving credit facility. TMCL VII 2020-3 Bonds. In September 2020, TMCL VII issued $213,000 of aggregate Class A principal amount and $8,000 of aggregate Class B principal amount of the Series 2020-3 Fixed Rate Asset Backed Notes (“the TMCL VII 2020-3 Bonds”). Under the terms of the TMCL VII 2020-3 Bonds, both principal and interest incurred are payable monthly. Proceeds from the TMCL VII 2020-3 Bonds were primarily used to pay off the TMCL VII 2018-1 Bonds. Estimated Future Principal Payments The following is a schedule of future scheduled repayments, by year, and borrowing capacities, as of December 31, 2020: Twelve months ending December 31, Available borrowing, Current and Available Borrowing, 2021 2022 2023 2024 2025 and thereafter Total Borrowing as limited by the Borrowing Base as limited by the Borrowing Base TL Revolving Credit Facility $ 31,316 $ 135,245 $ 1,271,939 $ — $ — $ 1,438,500 $ 61,500 $ 1,500,000 TL 2019 Term Loan 10,898 11,285 11,686 12,102 103,506 149,477 — — TMCL II Secured Debt Facility (1) 51,964 56,707 56,439 56,439 427,981 649,531 4,906 654,437 TMCL VI Term Loan 25,206 25,206 25,206 25,206 124,300 225,123 — — TMCL VII 2019-1 Bonds (2) 28,000 28,000 28,000 28,000 191,333 303,333 — — TMCL VII 2020-1 Bonds (2) 52,906 56,170 56,925 57,669 210,617 434,288 — — TMCL VII 2020-2 Bonds (2) 63,858 60,569 66,179 68,745 334,301 593,652 — — TMCL VII 2020-3 Bonds (2) 20,111 20,111 20,111 20,111 135,528 215,972 — — TAP Funding Revolving Credit Facility 132,150 — — — — 132,150 3,686 135,836 Total (3) $ 416,408 $ 393,294 $ 1,536,486 $ 268,272 $ 1,527,566 $ 4,142,026 $ 70,091 $ 2,290,272 (1) The estimated future repayments for TMCL II Secured Debt Facility is based on the assumption that the facility will not be extended on its associated conversion date. ( 2 ) Amounts on the TMCL VII 2019-1 Bonds, TMCL VII 2020-1 Bonds, TMCL VII 2020-2 Bonds, TMCL VII 2020-3 Bonds, exclude an unamortized discount of $81, $79, $157 and $82, respectively. ( 3 ) Future scheduled payments for all debts exclude unamortized prepaid debt issuance costs in an aggregate amount of $26,283. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instrument Detail [Abstract] | |
Derivative Instruments | (9) Derivative Instruments 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 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 following is a summary of the Company’s derivative instruments as of December 31, 2020: Notional Derivative instruments amount Interest rate swap contracts with several banks, with fixed rates between 1.73% and 2.94% per annum, amortizing notional amounts, with termination dates through January 15, 2023, non-designated $ 536,000 Interest rate swap contracts with several banks, with fixed rates between 0.17% and 1.58% per annum, amortizing notional amounts, with termination dates through April 30, 2027, designated 768,250 Interest rate cap contract at 3.00% fixed rate with a termination date of December 31, 2021 30,000 Total notional amount as of December 31, 2020 $ 1,334,250 The Company has utilized the income approach to measure at each balance sheet date the fair value of its derivative instruments on a recurring basis 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 $247 and $167 (both of which were additions to the net fair value) as of December 31, 2020 and 2019, respectively. Derivative instruments are designated or non-designated for hedge accounting purposes. The following table summarizes the notional amount and fair value of derivative instruments, which are inclusive of counterparty risk, as of December 31, 2020 and 2019: 2020 2019 Notional Derivative Amount Notional Derivative Amount Assets Interest rate swaps - designated as hedges $ 75,000 $ 47 $ — $ — Interest rate swaps - not designated as hedges — — 168,000 135 Total $ 75,000 $ 47 $ 168,000 $ 135 Liabilities Interest rate swaps - designated as hedges $ 693,250 $ 9,665 $ 110,000 $ 117 Interest rate swaps - not designated as hedges 536,000 19,570 628,500 13,661 Total $ 1,229,250 $ 29,235 $ 738,500 $ 13,778 Designated Derivative Instruments Derivative instruments that are designated as cash flow hedge for accounting purposes 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. The change in fair value of cash flow hedging instruments during the years ended December 31, 2020 and 2019 other As of December 31, 2018, none of the derivative instruments are designated by the Company for hedge accounting. Non-Designated Derivative Instruments Derivative instruments that are not designated as cash flow hedges for accounting purposes are economic hedges. The fair value of the non-designated derivative instruments is measured at each balance sheet date and the change in fair value during 2020, 2019 and 2018 of $6,044, $15,442 and $5,790, respectively, was recorded in the consolidated statements of operations as “unrealized loss on derivative instruments, net.” differentials The Company expects to reclassify an estimated net loss amount of $4,399 related to the designated interest rate swap agreements from accumulated other comprehensive income to interest expense in the consolidated statements of operations over the next twelve months. The following table summarizes the pre-tax impact of derivative instruments on the consolidated statements of operations and comprehensive income during the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Derivative instruments Financial Statement Caption Non-designated derivative instruments Realized (loss) gain on derivative instruments, net $ (12,295 ) $ 1,939 $ 5,238 Non-designated derivative instruments Unrealized loss on derivative instruments, net $ (6,044 ) $ (15,442 ) $ (5,790 ) Designated derivative instruments Other comprehensive loss $ (12,307 ) $ (110 ) $ — Designated derivative instruments Interest expense, net $ (2,806 ) $ 7 $ — |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | (10) Segment Information The Company operates in three reportable segments: Container Ownership, Container Management and Container Resale. The following tables show segment information for 2020, 2019 and 2018, reconciled to the Company’s income before income tax and noncontrolling interests as shown in its consolidated statements of operations: Container Container Container 2020 Ownership Management Resale Other Eliminations Totals Lease rental income - owned fleet $ 537,534 $ 891 $ — $ — $ — $ 538,425 Lease rental income - managed fleet — 62,448 — — — 62,448 Lease rental income $ 537,534 $ 63,339 $ — $ — $ — $ 600,873 Management fees - non-leasing from external customers $ 392 $ 129 $ 4,750 $ — $ — $ 5,271 Inter-segment management fees $ — $ 54,899 $ 12,575 $ — $ (67,474 ) $ — Trading container margin $ — $ — $ 3,532 $ — $ — $ 3,532 Gain on sale of owned fleet containers, net $ 27,230 $ — $ — $ — $ — $ 27,230 Depreciation expense $ 268,401 $ 939 $ — $ — $ (7,675 ) $ 261,665 Container lessee default recovery, net $ 1,675 $ — $ — $ — $ — $ 1,675 Interest expense $ 122,863 $ 367 $ — $ — $ — $ 123,230 Write-off of unamortized deferred debt issuance costs and bond discounts $ 8,750 $ — $ — $ — $ — $ 8,750 Realized loss on derivative instruments, net $ 12,295 $ — $ — $ — $ — $ 12,295 Unrealized loss on derivative instruments, net $ 6,044 $ — $ — $ — $ — $ 6,044 Segment income (loss) before income tax and noncontrolling interests (1) $ 41,831 $ 23,641 $ 16,433 $ (3,254 ) $ (5,352 ) $ 73,299 Total assets $ 5,641,866 $ 180,933 $ 12,050 $ 13,691 $ (107,164 ) $ 5,741,376 Purchase of containers and fixed assets $ 968,204 $ 194 $ — $ — $ — $ 968,398 Payments on container leaseback financing receivable $ 116,263 $ — $ — $ — $ — $ 116,263 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 (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized loss on derivative instruments, net of $ 6,044 , $ 15,442 and $5,790 for the years ended December 31, 2020 , 2019 and 201 8 , respectively , and write-off of unamortized deferred debt issuance costs and bond discounts of $ 8,750 , $ 0 and $ 881 for the years ended December 31, 2020, 2019 and 2018 , 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, 2020, 2019 and 2018 based on customers’ and Container Investors’ primary domicile: Years ended December 31, 2020 Percent of Total 2019 Percent of Total 2018 Percent of Total Lease rental income: Asia $ 302,709 50.4 % $ 329,567 53.2 % $ 319,286 52.1 % Europe 266,431 44.3 % 255,495 41.2 % 255,753 41.7 % North / South America 29,391 4.9 % 31,786 5.1 % 34,053 5.6 % All other international 2,342 0.4 % 2,912 0.5 % 3,612 0.6 % $ 600,873 100.0 % $ 619,760 100.0 % $ 612,704 100.0 % Management fees, non-leasing: Bermuda $ 2,797 53.1 % $ 4,576 60.2 % $ 4,418 51.8 % Europe 2,397 45.5 % 2,334 30.8 % 2,089 24.5 % Asia 11 0.2 % 28 0.4 % 7 0.1 % North / South America 9 0.2 % 342 4.5 % 1,970 23.1 % All other international 57 1.0 % 310 4.1 % 45 0.5 % $ 5,271 100.0 % $ 7,590 100.0 % $ 8,529 100.0 % 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, 2020, 2019 and 2018 based on the location of sale: Years ended December 31, 2020 Percent of Total 2019 Percent of Total 2018 Percent of Total Trading container sales proceeds: Asia $ 14,896 46.6 % $ 39,519 67.3 % $ 13,117 67.0 % North / South America 13,045 40.9 % 12,788 21.8 % 2,893 14.8 % Europe 3,991 12.5 % 6,411 10.9 % 3,487 17.8 % All other international 9 0.0 % 16 0.0 % 71 0.4 % $ 31,941 100.0 % $ 58,734 100.0 % $ 19,568 100.0 % Gain on sale of owned fleet containers, net: Asia $ 13,082 48.1 % $ 7,714 36.0 % $ 18,593 51.5 % North / South America 8,610 31.6 % 6,809 31.8 % 7,043 19.5 % Europe 5,538 20.3 % 5,577 26.1 % 9,622 26.7 % Bermuda — — — 0.0 % — — All other international — — 1,297 6.1 % 813 2.3 % $ 27,230 100.0 % $ 21,397 100.0 % $ 36,071 100.0 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 consisted of the following: 2020 2019 Trust accounts $ 17,054 $ 12,822 Other restricted cash accounts 57,093 84,531 Total restricted cash $ 74,147 $ 97,353 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, 2020, the Company had commitments to purchase containers to be delivered subsequent to December 31, 2020 in the total amount of $795,891. The Company also had commitments to purchase or fund containers under a sales-type leaseback financing arrangement with a lessee in the amount of $6,425. (c) Distribution The amounts distributed to the Container Investors are variable payments based upon the net operating income for each managed container (see Note 3 “Managed Container Fleet”). There are no future minimum lease payment obligations under the Company’s management agreements. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | (12) Share-Based Compensation As of December 31, 2020, 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, performance 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. At December 31, 2020, 2,238,360 shares were available for future issuance under the 2019 Plan. Share Options 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. The following tables summarizes the activity of stock options in the 2019 Plan for the years ended December 31, 2020, 2019, and 2018: Share options (common share equivalents) Weighted average exercise price 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 exercised during the period (113,960 ) $ 11.36 Options expired during the period (130,711 ) $ 26.14 Options forfeited during the period (33,968 ) $ 12.40 Balances, December 31, 2020 1,529,026 $ 19.90 Options exercisable at December 31, 2020 1,189,058 $ 22.21 Options vested and expected to vest at December 31, 2020 1,510,274 $ 20.01 As of December 31, 2020, $1,674 of total compensation cost related to non-vested share option not yet recognized is expected to be recognized over a weighted average period of 2 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 $19.18 per share as of December 31, 2020 was $4,107. 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, 2020. The aggregate intrinsic value of all options exercised during 2020, 2019 and 2018, based on the closing share price on the date each option was exercised was $710, $4 and $83, respectively. The following table summarizes information about share options exercisable and outstanding at December 31, 2020: 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 50,067 $ 9.13 226,874 $ 9.13 $9.46 2,500 $ 9.46 5,000 $ 9.46 $9.70 210,359 $ 9.70 210,359 $ 9.70 $9.75 2,813 $ 9.75 3,750 $ 9.75 $11.15 92,946 $ 11.15 202,560 $ 11.15 $12.23 - $14.17 158,254 $ 14.05 158,254 $ 14.05 $22.95 150,391 $ 22.95 200,501 $ 22.95 $28.05 - $28.54 215,514 $ 28.27 215,514 $ 28.27 $34.14 162,639 $ 34.14 162,639 $ 34.14 $ 38.36 143,575 $ 38.36 143,575 $ 38.36 1,189,058 $ 22.21 1,529,026 $ 19.90 The weighted average contractual life of options exercisable and outstanding as of December 31, 2020 was 4.7 years and 4.9 years, respectively. The Company did not grant any stock options during the year ended December 31, 2020. The estimated weighted average grant date fair value of share options granted during 2019 and 2018 was $4.47 and $5.40 per share, respectively, and was estimated using the Black-Scholes option pricing model for the years ended December 31, 2019 and 2018 with the following assumptions.: 2019 2018 Risk-free interest rates 1.7 % 2.9 % Expected terms (in years) 5.5 5.5 Expected common share price volatilities 52.9 % 49.8 % Expected dividends 0.0 % 0.0 % Expected forfeitures 3.4 % 4.3 % 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. Restricted Share Units (“RSU”) and Performance Restricted Share Units (“PSU”) RSU awards granted to employees prior to 2020 have a vesting period of four years or vest in increments of 25% per year on each anniversary of the grant date. RSU awards granted to employees during 2020 have a vesting period of three years or vest in increments of 33.33% per year on each anniversary of the grant date. RSU awards granted to directors fully vest one year after their grant date. The Company granted PSU awards to certain executives during the year ended December 31, 2020, which are subject to both service and market vesting conditions. The PSU awards will vest at the end of a 3-year performance cycle if the market conditions are met. The market-based conditions will be satisfied if certain milestones based on the Company’s common stock price or relative total shareholder return (“TSR”) are achieved. The following tables summarizes the activity of RSU and PSU awards under the 2019 Plan for the years ended December 31, 2020, 2019, and 2018: RSU and PSU Weighted average grant date fair value 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 granted during the period (1) 384,428 $ 16.96 Share units vested during the period (300,404 ) $ 12.08 Share units forfeited during the period (19,743 ) $ 12.62 Balances, December 31, 2020 721,901 $ 14.55 Share units outstanding and expected to vest at December 31, 2020 677,055 $ 14.48 (1) Share units granted during the year ended December 31, 2020 includes 183,560 shares of PSU awards with a grant date fair value of $22.06 per share. On the settlement date for each measurement period of market-based awards, grantees may receive shares equal to 0% to 200% of the awards granted depending upon the achievement of certain market criteria based on the Company’s TSR relative to the peer group during the three-year There were no PSU awards granted during the years ended December 31, 2019 and 2018. As of December 31, 2020, $8,833 of total compensation cost related to non-vested time-based RSU and market-based PSU awards not yet recognized is expected to be recognized over a weighted average period of 2 years There were no PSU awards PSU awards 2020 Risk-free interest rates 0.16 % Expected common share price volatilities 57.4 % Expected dividends 0.0 % |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Share Repurchase Program | (13) Share Repurchase Program In August 2019, the Company’s board of directors approved a share repurchase program to repurchase up to $25,000 of the Company’s common shares, in March 2020 the board of directors approved an increase by another $25,000 to this program and in September 2020 the program was further increased by $50,000. 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 d id 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. During the year ended December 31, 2019, the Company repurchased 878,637 shares at an average price of $9.75 and for a total amount of $8,597, including commission paid. During the year ended December 31, 2020, the Company repurchased 6,736,493 shares at an average price of $10.17 for a total amount of $68,493, including commissions paid. As of December 31, 2020, approximately $23,202 remained available for repurchases under the share repurchase program. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | (14) Subsequent Event On January 19, 2021, the Company completed the acquisition of 49.9% of the common shares of TAP Funding from TAP Ltd. for a total purchase price consideration of $21,500. Following the acquisition, the Company owns 100% of TAP Funding and became a wholly-owned subsidiary of the. On February 10, 2021, the Company fully paid and terminated its TAP Funding Revolving Credit Facility. On February 10, 2021, TMCL VII issued $523,500 of aggregate Class A and $26,500 of aggregate Class B Series 2021-1 Fixed Rate Asset Backed Notes (“the TMCL VII 2021-1 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 2021-1 Bonds totaling $550,000 represent partially amortizing notes payable over an expected payment term of 7.5 years. Proceeds from the TMCL VII 2021-1 Bonds were primarily used to pay down the Company’s revolving credit facilities to create additional borrowing capacity for future container investments. The TMCL VII 2021-1 Bonds are secured by a pledge of TMCL VII’s assets. On February 19, 2021, TL completed a $70,270 seven-year February 2028 |
Schedule I - Parent Company Inf
Schedule I - Parent Company Information | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018 (All currency expressed in United States dollars in thousands) 2020 2019 2018 Operating expenses: General and administrative expense $ 3,988 $ 4,089 $ 4,083 Total operating expenses 3,988 4,089 4,083 Loss from operations (3,988 ) (4,089 ) (4,083 ) Other income: Equity in net income of subsidiaries 76,076 60,813 54,461 Interest income 80 — — Other, net 654 — — Net other income 76,810 60,813 54,461 Income before income tax 72,822 56,724 50,378 Income tax benefit — — — Net income attributable to Textainer Group Holdings Limited common shareholders $ 72,822 $ 56,724 $ 50,378 Net income attributable to Textainer Group Holdings Limited common shareholders per share: Basic $ 1.37 $ 0.99 $ 0.88 Diluted $ 1.36 $ 0.99 $ 0.88 Weighted average shares outstanding (in thousands): Basic 53,271 57,349 57,200 Diluted 53,481 57,459 57,487 Other comprehensive income (loss), before tax: Change in derivative instruments designated as cash flow hedges (12,307 ) (110 ) — Reclassification of realized loss (gain) on derivative instruments designated as cash flow hedges 2,806 (7 ) — Foreign currency translation adjustments 177 42 (127 ) Comprehensive income, before tax 63,498 56,649 50,251 Income tax benefit related to items of other comprehensive income (loss) 91 — — Comprehensive income attributable to Textainer Group Holdings Limited common shareholders $ 63,589 $ 56,649 $ 50,251 TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES SCHEDULE I - CONDENSED BALANCE SHEETS Parent Company Information December 31, 2020 and 2019 (All currency expressed in United States dollars in thousands) 2020 2019 Assets Current assets: Cash and cash equivalents $ 12,372 $ 5,956 Prepaid expenses and other current assets 336 310 Due from affiliates, net 2,679 638 Total current assets 15,387 6,904 Investments in subsidiaries 1,245,427 1,253,763 Total assets $ 1,260,814 $ 1,260,667 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable and accrued expenses $ 394 $ 476 Total current liabilities 394 476 Shareholders’ equity: Common shares 587 583 Treasury shares (86,239 ) (17,746 ) Additional paid-in capital 417,421 411,407 Accumulated other comprehensive loss (9,744 ) (511 ) Retained earnings 938,395 866,458 Total shareholders’ equity 1,260,420 1,260,191 Total liabilities and shareholders’ equity $ 1,260,814 $ 1,260,667 TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES SCHEDULE I - CONDENSED STATEMENTS OF CASH FLOWS Parent Company Information Years ended December 31, 2020, 2019 and 2018 (All currency expressed in United States dollars in thousands) 2020 2019 2018 Cash flows from operating activities: Net income attributable to Textainer Group Holdings Limited common shareholders $ 72,822 $ 56,724 $ 50,378 Adjustments to reconcile net income to net cash provided by operating activities: Equity in net income of subsidiaries (76,076 ) (60,813 ) (54,461 ) Dividends received from subsidiaries 76,167 46,823 — Share-based compensation 4,723 4,388 7,355 Decrease (increase) in: Prepaid expenses and other current assets (26 ) (128 ) 34 Increase (decrease) in: Accounts payable and accrued expenses (82 ) (237 ) 145 Total adjustments 4,706 (9,967 ) (46,927 ) Net cash provided by operating activities 77,528 46,757 3,451 Cash flows from investing activities: (Decrease) increase in investments in subsidiaries, net (2,050 ) (41,865 ) 127 Net cash (used in) provided by investing activities (2,050 ) (41,865 ) 127 Cash flows from financing activities: Purchase of treasury shares (68,493 ) (8,597 ) — Issuance of common shares upon exercise of share options 1,295 126 130 Due (from) to affiliates, net (2,041 ) 49 333 Net cash (used in) provided by financing activities (69,239 ) (8,422 ) 463 Effect of exchange rate changes 177 42 (127 ) Net increase (decrease) in cash and cash equivalents 6,416 (3,488 ) 3,914 Cash and cash equivalents, beginning of the year 5,956 9,444 5,530 Cash and cash equivalents, end of the year $ 12,372 $ 5,956 $ 9,444 |
Schedule II Valuation Accounts
Schedule II Valuation Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II Valuation Accounts | TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES Valuation Accounts Years ended December 31, 2020, 2019 and 2018 (All currency expressed in United States dollars in thousands) Additions Balance at Charged to Balance at Beginning of Expense End of Year (Recovery) Deductions Year December 31, 2018 Accounts receivable, allowance for doubtful accounts $ 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 December 31, 2020 Accounts receivable, allowance for doubtful accounts $ 6,299 $ (3,149 ) $ (487 ) $ 2,663 |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 operations. 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 3 “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 and finance 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 operations. On January 19, 2021, the Company completed the acquisition of 49.9% of the common shares of TAP Funding (see Note 14 “Subsequent Events”). Leased Assets Pool Company Limited On December 31, 2019, the Company completed the acquisition of Leased Assets Pool Company Limited (“LAPCO”) (a Bermuda company) from Trencor Limited 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 operations as “gain on settlement of pre-existing management agreement” during the year ended December 31, 2019. 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 I nvestors . As such, the Company is not the primary beneficiary and does not consolidate the Container I nvestors . Managed containers which are owned by Container I nvestors 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 (see Note 1 (a) “ Nature of Operations ” and Note 3 “Managed Container Fleet” ). 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, 2020 and 2019. All owned containers are pledged as collateral for debt as of December 31, 2020 and 2019. |
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, South Africa, 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: 2020 2019 2018 Cash and cash equivalents $ 131,018 $ 180,552 $ 137,298 Restricted cash included in long-term assets 74,147 97,353 87,630 Cash, cash equivalents and restricted cash, end of period $ 205,165 $ 277,905 $ 224,928 |
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 $0 and $2 during the years ended December 31, 2020 and 2019, respectively, for the management rights relinquished relating to the purchase of containers previously managed for a container investor. As of December 31, 2020, the aggregate future amortization of intangible assets of $2,719 is expected to amortize through year 2022. |
Revenue Recognition | (e) Revenue Recognition The components of the Company’s revenue as presented in the consolidated statements of operations 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 operations (see Note 3 “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 finance 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 3 “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 |
Allowance for Credit Losses | (f) Allowance for Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326) Topic 842, Leases The Company adopted ASU 2016-13 and all related amendments on the effective date of January 1, 2020 using the modified retrospective method by recognizing the cumulative effect adjustment to the opening balance of retained earnings at the adoption date. Periods prior to the adoption date that are presented for comparative purposes are not adjusted. As a result of the adoption of ASU 2016-13, the Company recognized a beginning balance transition adjustment to the allowance for credit losses on January 1, 2020 of $892, with a cumulative effect adjustment to the opening balance of retained earnings in the consolidated balance sheet and consolidated statement of stockholder’s equity as of December 31, 2020. Accounts receivable, net investment in finance leases and container leaseback financing receivable are stated at amortized cost net of allowance for credit losses (see Note 6 “Allowance for Credit Losses” for further information). Accounts Receivables The Company maintains allowances, if necessary, for doubtful accounts against accounts receivables resulting from the inability of its lessees to make required payments related to billed amounts under the operating leases, finance leases, container leaseback financing receivable and for sales of owned fleet containers and trading containers. The allowance is developed based on two components: (1) specific reserves for receivables for which management believes full collection is doubtful; and (2) a general reserve for estimated losses inherent in the receivables. 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. The Company considers an account past due when a payment has not been received in accordance with the terms of the lease agreement, and 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. Net Investment in Finance Leases and Container Leaseback Financing Receivables The Company maintains allowances for credit losses against net investment in finance leases and container leaseback financing receivable related to unbilled amounts under the finance leases and the sales-type leaseback arrangements accounted for as financing receivable. The Company estimates its potential future expected credit losses based on historical losses from lessee defaults, current economic conditions and reasonable and supportable forecasts that may affect the collectability of the reported amount. The Company monitors its container lessees’ performance and its lease exposures on an ongoing basis. The Company evaluates its exposure by portfolio with similar risk characteristics based on the credit worthiness, external credit data and overall credit quality of its lessees. The Company’s internal risk rating categories are “Tier 1” for the lowest level of risk which are typically the large international shipping lines with strong financial and asset base; “Tier 2” for moderate level of risk which includes lessees which are well-established in the market; and “Tier 3” for the highest level of risk which includes smaller shipping lines or lessees that exhibit high volatility in payments on a regular basis. |
Direct Container Expenses – Owned Fleet | (g) Direct Container Expense 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 | ( h ) 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 operations. 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 | ( i ) 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 | ( j ) 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 operations were $251, $393, and $1,085 for the years ended December 31, 2020, 2019 and 2018, 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 and Capitalized Implementation Costs | ( k ) Fixed Assets and Capitalized Implementation Costs 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. In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles - Goodwill and Other (Topic 350) - 2018-15 on January 1, 2020 using the prospective transition approach and t he implementation costs that were capitalized for the year ended December 31, 2020 amounted to $ 4,212 were included in “prepaid expenses and other current assets” in the Company’s consolidated balance sheet . Amortization of the capitalized implementation costs will commence when the hosting arrangement is ready for its intended use and will be amortized over the term of the hosting arrangement on a straight-line basis. |
Containers | ( l ) 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. To perform this assessment, the Company analyzed sales data over a minimum of a ten-year The Company estimates the useful lives and residual values of its containers to be as follows: As of December 31, 2020 and 2019 Estimated Residual life (years) Value Dry containers other than open top and flat rack containers: 20' 13 $ 1,000 40' 14 $ 1,200 40' high cube 13 $ 1,400 45' high cube 13 $ 1,500 Refrigerated containers: 20' 12 $ 2,750 20' high cube 12 $ 2,049 40' high cube 12 $ 4,000 Open top and flat rack containers: 20' folding flat rack 15 $ 1,300 40' folding flat rack 16 $ 1,700 20' open top 15 $ 1,500 40' open top 14 $ 2,500 Tank containers 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, 2020 and 2019 were as follows: 2020 2019 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Dry containers other than open top and flat rack containers: 20' $ 1,532,753 $ (428,913 ) $ 1,103,840 $ 1,627,878 $ (396,247 ) $ 1,231,631 40' 144,881 (55,154 ) 89,727 167,011 (58,852 ) 108,159 40' high cube 2,717,384 (672,416 ) 2,044,968 2,510,937 (592,374 ) 1,918,563 45' high cube 27,880 (12,747 ) 15,133 28,670 (11,488 ) 17,182 Refrigerated containers: 20' 20,164 (8,493 ) 11,671 20,484 (7,258 ) 13,226 20' high cube 2,605 (1,742 ) 863 5,139 (3,090 ) 2,049 40' high cube 1,103,817 (398,721 ) 705,096 1,052,707 (338,068 ) 714,639 Open top and flat rack containers: 20' folding flat 17,228 (5,132 ) 12,096 17,617 (4,538 ) 13,079 40' folding flat 49,167 (18,275 ) 30,892 51,152 (17,278 ) 33,874 20' open top 13,253 (1,790 ) 11,463 13,259 (1,625 ) 11,634 40' open top 22,271 (4,738 ) 17,533 23,313 (4,351 ) 18,962 Tank containers 93,240 (11,470 ) 81,770 81,151 (7,998 ) 73,153 $ 5,744,643 $ (1,619,591 ) $ 4,125,052 $ 5,599,318 $ (1,443,167 ) $ 4,156,151 See Note 3 “Managed Container Fleet” for information on the managed fleet containers included above. 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, 2020, 2019 and 2018. 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 a gain on container recovery of $1,644 during the year ended December 31, 2020 due to a settlement agreement with an insolvent lessee on containers which were previously written off in 2018. The Company recorded impairment (recoveries) charges during the years ended December 31, 2020, 2019 and 2018 of $(1,647), $7,179 and $12,980, respectively, to write-off containers that were unlikely to be recovered from lessees in default, net of gains of $1,647, $1,988 and $0 associated with recoveries on containers previously estimated as lost with lessees in default for the years ended December 31, 2020, 2019 and 2018, respectively. These amounts are recorded in the consolidated statements of operations as “container lessee default (recovery) 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 types of containers in the locations in which the containers are stored. 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, 2020 , 2019 and 2018 , the Company recorded container impairments of $ 11,094 , $ and $ , 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 . The impairment charges are included in “depreciation expense” in the consolidated statements of operations . During the years ended December 31, 2020, 2019 and 2018, 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 operations: 2020 2019 2018 Units Amount Units Amount Units Amount Gain on sale of previously written down owned fleet containers, net 51,541 $ 15,451 52,319 $ 6,665 28,291 $ 14,563 Gain on sale of owned fleet containers not written down, net 54,807 11,779 52,126 14,732 79,119 21,508 Gain on sale of owned fleet containers, net 106,348 $ 27,230 104,445 $ 21,397 107,410 $ 36,071 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. |
Income Taxes | (m) 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 | ( n ) 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 operations . In 2020 , 2019 and 2018 , debt issuance costs of $ 13,637 , $ and $ , respectively, were capitalized and amortization of debt issuance costs of $ 7,712 , $ and $ 8,400 , 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 2020, write-offs of unamortized deferred debt issuance costs and bond discounts included $122 and $8,628 of write-offs related to the amendment of TAP Funding Revolving Credit Facility and the TL Revolving Credit |
Concentrations | ( o ) 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 2020, 2019 and 2018, $15,225 or 28%, $10,527 or 23%, and $11,141 or 21%, 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, 2020, 2019 and 2018, and more than 10% of the Company’s gross accounts receivable from its owned fleet as of December 31, 2020 and 2019: Lease Rental Income - owned fleet 2020 2019 2018 Customer A 18.4 % 15.4 % 14.0 % Customer B 12.7 % 13.3 % 13.4 % Customer C 9.4 % 8.3 % 8.4 % Gross Accounts Receivable - owned fleet 2020 2019 Customer A 30.3 % 17.1 % Customer B 12.9 % 11.2 % Customer C 10.3 % 7.0 % Total fleet lease rental income, as reported in the consolidated statements of operations, 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 during the years ended December 31, 2020, 2019 and 2018, and more than 10% of the Company’s gross accounts receivable from its total fleet as of December 31, 2020 and 2019: Lease Rental Income - total fleet 2020 2019 2018 Customer A 17.8 % 14.8 % 13.8 % Customer B 13.3 % 13.5 % 13.7 % Customer C 9.7 % 8.7 % 8.7 % Gross Accounts Receivable - total fleet 2020 2019 Customer A 37.7 % 16.6 % Customer C 16.7 % 7.7 % Customer B 11.6 % 12.0 % As of December 31, 2020, and 2019, approximately 98.0% and 95.6%, respectively, of the Company’ gross accounts receivable for its total fleet were from container lessees and customers domiciled outside of the U.S. As of December 31, 2020 and 2019, approximately 99.8% and 97.5%, 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 2020, 2019 and 2018. Country 2020 2019 2018 Switzerland 20.5 % 13.3 % 14.1 % France 12.7 % 14.0 % 13.8 % Taiwan 12.3 % 15.5 % 14.6 % People's Republic of China 11.8 % 14.1 % 15.0 % Singapore 11.0 % 11.1 % 10.5 % |
Derivative Instruments and Hedging | ( p ) 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 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”). 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. The Company establishes criteria for both the designation and effectiveness of hedging activities. See Note 9 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. 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. |
Share Options and Restricted Share Units | ( q ) Share Options and Restricted Share Units The Company estimates the fair value of all employee share options, restricted share units (“RSU”) and performance restricted share units (“PSU”) awarded under its 2019 Share Incentive Plan (the “2019 Plan”) on the grant date. The Company uses the Black-Scholes-Merton (“Black-Scholes”) option-pricing model to determine the estimated fair value for share options. 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 time based RSUs. For PSUs or market based restricted share units that were granted with a market condition, the Company uses the Monte-Carlo simulation valuation model. See Note 12 “Share-Based Compensation” for further discussions. Compensation expense for share options and RSUs with only a service condition is recognized on a straight-line basis over the requisite service period, generally the vesting period of the award. Provided that the requisite service period is rendered, compensation expense for PSUs with a market condition is recognized on a straight-line basis even if the market condition is not achieved. Compensation expense is recognized net of forfeitures that are estimated at the time of grant based on the Company’s historical experience and revised in subsequent periods if actual forfeitures differ from those estimates. The expected forfeiture rate was 3.5 % , 3.4 % and 4.3 % as of December 31, 2020 , 2019 and 201 8 , respectively . Share-based compensation expense of $4,723, $4,388 and $7,355 was recorded during 2020, 2019 and 2018, respectively, of which $4,257, $3,780 and $6,746 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 | ( r ) 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 | ( s ) 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 | ( t ) 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 RSUs and PSUs were converted into, common shares. Potentially dilutive share options, RSUs and PSUs 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 2020, 2019 and 2018 is presented as follows: Share amounts in thousands 2020 2019 2018 Numerator: Net income attributable to Textainer Group Holdings Limited common shareholders $ 72,822 $ 56,724 $ 50,378 Denominator: Weighted average common shares outstanding-- basic 53,271 57,349 57,200 Dilutive share options and RSUs 210 110 287 Weighted average common shares outstanding-- diluted 53,481 57,459 57,487 Net income attributable to Textainer Group Holdings Limited common shareholders per common share Basic $ 1.37 $ 0.99 $ 0.88 Diluted $ 1.36 $ 0.99 $ 0.88 Share options, RSUs and PSUs excluded from the computation of diluted EPS because they were anti-dilutive 1,674 1,805 1,232 |
Fair Value Measurements | ( u ) 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. As of December 31, 2020 and 2019, the carrying amounts of cash and cash equivalents, restricted cash, accounts receivable and payable, due from affiliates, net, container contracts payable, and due to container investors, net, approximate their fair values due to the short-term nature of these financial instruments. See The following table summarizes the Company’s assets measured at fair value on a non-recurring basis as of December 31, 2020 and 2019: Quoted Prices in Active Markets Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Years Ended December 31, 2020 and 2019 (Level 1) (Level 2) (Level 3) Cumulative Impairment December 31, 2020 Assets Containers held for sale (1) $ 5,845 $ 2,118 Total $ — $ 5,845 $ — $ 2,118 December 31, 2019 Assets Containers held for sale (1) $ — $ 22,217 $ — $ 6,346 Total $ — $ 22,217 $ — $ 6,346 (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 proceeds for sales of similar types of containers in the locations in which the containers are stored. 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 At December 31, 2020 and 2019, the fair value of net investment in finance leases (including the short-term balance) was approximately $856,392 and $299,275 at December 31, 2020 and 2019, respectively, compared to book values of $879,960 and $295,303 at December 31, 2020 and 2019, respectively. The fair value of container leaseback financing receivable (including the short-term balance) was approximately $363,774 and $267,551 at December 31, 2020 and 2019, respectively, compared to book values of $363,868 and $271,658 at December 31, 2020 and 2019, respectively. The fair value of long-term debt (including current maturities) based on the borrowing rates available to the Company was approximately $4,144,332 and $3,798,683 at December 31, 2020 and 2019, respectively, compared to book values of $4,115,344 and $3,797,729 at December 31, 2020 and 2019, respectively. |
Leases | ( v ) Leases The Company adopted FASB Accounting Standards Update No. 2016-02, Leases (“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.” As a result of the adoption of the new lease accounting guidance, the Company (as a lessee) recognized a right-of-use asset and lease liability in the consolidated balance sheets for all existing office space leases 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. As a result of the adoption of the new lease accounting guidance, the Company’s accounting (as a lessor) for finance leases and operating leases remained substantially unchanged and did not have an impact on the timing of revenue recognition relating to lease rental income in its consolidated statements of operations. The Company ’ s consolidated statements of cash flows report all cash receipts from leases, including principal payments received from finance leases within operating activities instead of investing activities as a result of the adoption of ASU 2016-02. S ee Note 5 “ Leases ” for further discussion. |
Recently Issued Accounting Standards and Pronouncements | ( w ) Recently Issued Accounting Standards and Pronouncements In March 2020, the FASB issued Accounting Standards Update No. 2020-04, Reference Rate Reform (“Topic 848”) In January 2021, the FASB also issued , Reference Rate Reform: Scope (“ASU 2021-01”), which expands the scope of Topic 848 . The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. On April 10, 2020, the FASB issued a question-and-answer document regarding accounting for lease concessions and other effects of the coronavirus disease pandemic (“COVID-19”). The document clarifies that entities may elect to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under Leases ASC 842. Instead, an entity that elects not to evaluate whether a concession is a modification can then elect whether to apply the modification guidance (i.e. assume the relief was always contemplated by the contract or assume the relief was not contemplated by the contract). Both lessees and lessors may make this election only when concessions related to the effects of COVID-19 do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. Upon issuance of this document, the Company made the election to apply the practical expedient method to account for any concessions as if they were contemplated as part of our existing leases and will apply this election consistently for all leases. There were no concessions related to the COVID-19 that were granted (as a lessor) or received (as a lessee) as of December 31, 2020. In October 2020, the FASB issued Accounting Standards Update Codification Improvements – Disclosures |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: 2020 2019 2018 Cash and cash equivalents $ 131,018 $ 180,552 $ 137,298 Restricted cash included in long-term assets 74,147 97,353 87,630 Cash, cash equivalents and restricted cash, end of period $ 205,165 $ 277,905 $ 224,928 |
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, 2020 and 2019 Estimated Residual life (years) Value Dry containers other than open top and flat rack containers: 20' 13 $ 1,000 40' 14 $ 1,200 40' high cube 13 $ 1,400 45' high cube 13 $ 1,500 Refrigerated containers: 20' 12 $ 2,750 20' high cube 12 $ 2,049 40' high cube 12 $ 4,000 Open top and flat rack containers: 20' folding flat rack 15 $ 1,300 40' folding flat rack 16 $ 1,700 20' open top 15 $ 1,500 40' open top 14 $ 2,500 Tank containers 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, 2020 and 2019 were as follows: 2020 2019 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Dry containers other than open top and flat rack containers: 20' $ 1,532,753 $ (428,913 ) $ 1,103,840 $ 1,627,878 $ (396,247 ) $ 1,231,631 40' 144,881 (55,154 ) 89,727 167,011 (58,852 ) 108,159 40' high cube 2,717,384 (672,416 ) 2,044,968 2,510,937 (592,374 ) 1,918,563 45' high cube 27,880 (12,747 ) 15,133 28,670 (11,488 ) 17,182 Refrigerated containers: 20' 20,164 (8,493 ) 11,671 20,484 (7,258 ) 13,226 20' high cube 2,605 (1,742 ) 863 5,139 (3,090 ) 2,049 40' high cube 1,103,817 (398,721 ) 705,096 1,052,707 (338,068 ) 714,639 Open top and flat rack containers: 20' folding flat 17,228 (5,132 ) 12,096 17,617 (4,538 ) 13,079 40' folding flat 49,167 (18,275 ) 30,892 51,152 (17,278 ) 33,874 20' open top 13,253 (1,790 ) 11,463 13,259 (1,625 ) 11,634 40' open top 22,271 (4,738 ) 17,533 23,313 (4,351 ) 18,962 Tank containers 93,240 (11,470 ) 81,770 81,151 (7,998 ) 73,153 $ 5,744,643 $ (1,619,591 ) $ 4,125,052 $ 5,599,318 $ (1,443,167 ) $ 4,156,151 |
Net Gain on Sale of Owned Fleet Containers | During the years ended December 31, 2020, 2019 and 2018, 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 operations: 2020 2019 2018 Units Amount Units Amount Units Amount Gain on sale of previously written down owned fleet containers, net 51,541 $ 15,451 52,319 $ 6,665 28,291 $ 14,563 Gain on sale of owned fleet containers not written down, net 54,807 11,779 52,126 14,732 79,119 21,508 Gain on sale of owned fleet containers, net 106,348 $ 27,230 104,445 $ 21,397 107,410 $ 36,071 |
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, 2020, 2019 and 2018, and more than 10% of the Company’s gross accounts receivable from its owned fleet as of December 31, 2020 and 2019: Lease Rental Income - owned fleet 2020 2019 2018 Customer A 18.4 % 15.4 % 14.0 % Customer B 12.7 % 13.3 % 13.4 % Customer C 9.4 % 8.3 % 8.4 % |
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 during the years ended December 31, 2020, 2019 and 2018, and more than 10% of the Company’s gross accounts receivable from its total fleet as of December 31, 2020 and 2019: Lease Rental Income - total fleet 2020 2019 2018 Customer A 17.8 % 14.8 % 13.8 % Customer B 13.3 % 13.5 % 13.7 % Customer C 9.7 % 8.7 % 8.7 % |
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 2020, 2019 and 2018. Country 2020 2019 2018 Switzerland 20.5 % 13.3 % 14.1 % France 12.7 % 14.0 % 13.8 % Taiwan 12.3 % 15.5 % 14.6 % People's Republic of China 11.8 % 14.1 % 15.0 % Singapore 11.0 % 11.1 % 10.5 % |
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 2020, 2019 and 2018 is presented as follows: Share amounts in thousands 2020 2019 2018 Numerator: Net income attributable to Textainer Group Holdings Limited common shareholders $ 72,822 $ 56,724 $ 50,378 Denominator: Weighted average common shares outstanding-- basic 53,271 57,349 57,200 Dilutive share options and RSUs 210 110 287 Weighted average common shares outstanding-- diluted 53,481 57,459 57,487 Net income attributable to Textainer Group Holdings Limited common shareholders per common share Basic $ 1.37 $ 0.99 $ 0.88 Diluted $ 1.36 $ 0.99 $ 0.88 Share options, RSUs and PSUs excluded from the computation of diluted EPS because they were anti-dilutive 1,674 1,805 1,232 |
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, 2020 and 2019: Quoted Prices in Active Markets Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Years Ended December 31, 2020 and 2019 (Level 1) (Level 2) (Level 3) Cumulative Impairment December 31, 2020 Assets Containers held for sale (1) $ 5,845 $ 2,118 Total $ — $ 5,845 $ — $ 2,118 December 31, 2019 Assets Containers held for sale (1) $ — $ 22,217 $ — $ 6,346 Total $ — $ 22,217 $ — $ 6,346 (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 2020 2019 Customer A 30.3 % 17.1 % Customer B 12.9 % 11.2 % Customer C 10.3 % 7.0 % |
Schedule of Concentration Risk of Total Fleet Lease Rental Income | Gross Accounts Receivable - total fleet 2020 2019 Customer A 37.7 % 16.6 % Customer C 16.7 % 7.7 % Customer B 11.6 % 12.0 % |
Insurance Receivable and Impa_2
Insurance Receivable and Impairment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loss Contingency [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 Recovery costs 314 Insurance receivable related to this insolvent customer as of December 31, 2020 $ 2,106 |
Managed Container Fleet (Tables
Managed Container Fleet (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Company's Leasing Equipment for Owned and Managed Fleet | The Company’s container leasing equipment for the owned and managed fleet as of December 31, 2020 and 2019, were as follows: 2020 2019 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Containers - owned fleet $ 5,740,717 $ (1,619,304 ) $ 4,121,413 $ 5,582,986 $ (1,442,986 ) $ 4,140,000 Containers - managed fleet 3,926 (287 ) 3,639 16,332 (181 ) 16,151 Total containers $ 5,744,643 $ (1,619,591 ) $ 4,125,052 $ 5,599,318 $ (1,443,167 ) $ 4,156,151 |
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 2020, 2019 and 2018 were as follows (also, see Note 4 “Transactions with Affiliates and Container Investors”): 2020 2019 2018 Lease rental income - managed fleet $ 62,448 $ 101,901 $ 111,342 Less: distribution expense to managed fleet container investors (57,311 ) (93,858 ) (102,992 ) Less: depreciation and interest expense on managed containers purchased on or after January 1, 2019 (730 ) (394 ) — Management fees from leasing 4,407 7,649 8,350 Management fees from non-leasing services 5,271 7,590 8,529 Total management fees $ 9,678 $ 15,239 $ 16,879 |
Summary of Reconciliation of Balance Sheet Accounts From the Managed Fleet to Total Amount in Condensed Consolidated Balance Sheets | The following table provides a reconciliation of the balance sheet accounts from the managed fleet to the total amount as of December 31, 2020 and 2019 in the consolidated balance sheets 2020 2019 Accounts receivable - owned fleet $ 97,950 $ 96,158 Accounts receivable - managed fleet 10,628 13,226 Total accounts receivable $ 108,578 $ 109,384 Prepaid expenses and other current assets - owned fleet $ 13,614 $ 14,627 Prepaid expenses and other current assets - managed fleet 99 189 Total prepaid expenses and other current assets $ 13,713 $ 14,816 Accounts payable and accrued expenses - owned fleet $ 23,198 $ 21,451 Accounts payable and accrued expenses - managed fleet 1,187 1,953 Total accounts payable and accrued expenses $ 24,385 $ 23,404 Container contracts payable - owned fleet $ 231,647 $ 9,394 Total container contracts payable $ 231,647 $ 9,394 |
Transactions with Affiliates _2
Transactions with Affiliates and Container Investors (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Total Management Fees Earned from the Managed Fleet, Including Acquisition Fees and Sales Commissions | Total management fees earned from the Company’s managed fleet, including acquisition fees and sales commissions during 2020, 2019 and 2018 were as follows: 2020 2019 2018 Fees from affiliated Container Investors $ — $ 3,527 $ 3,575 Fees from unaffiliated Container Investors 9,678 11,374 11,334 Fees from Container Investors 9,678 14,901 14,909 Other fees — 338 1,970 Total management fees $ 9,678 $ 15,239 $ 16,879 |
Summary of Due to Container Investors, Net | The following table provides a summary of due to container investors, net at December 31, 2020 and 2019: 2020 2019 Accounts receivable - managed fleet $ 10,628 $ 13,226 Prepaid expenses and other current assets - managed fleet 99 189 Accounts payable and accrued expenses - managed fleet (1,187 ) (1,953 ) 9,540 11,462 Distributions due to container investors on lease rentals collected, net of container expenses paid and management fees 9,157 10,516 Due to container investors, net $ 18,697 $ 21,978 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Lease Rental Income | The Company’s lease rental income for the years ended December 31, 2020 and 2019 were as follows: 2020 2019 Owned Managed Total Owned Managed Total Lease rental income - operating leases $ 469,109 $ 58,175 $ 527,284 $ 470,722 $ 96,227 $ 566,949 Interest income on net investment in finance leases 30,121 — 30,121 15,356 — 15,356 Interest income on container leaseback financing receivable 17,243 — 17,243 10,313 — 10,313 Variable lease revenue 21,952 4,273 26,225 21,468 5,674 27,142 Total lease rental income $ 538,425 $ 62,448 $ 600,873 $ 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, 2020: Owned Managed Total Year ending December 31: 2021 361,495 32,769 394,264 2022 302,704 19,173 321,877 2023 258,275 16,081 274,356 2024 198,781 12,119 210,900 2025 and thereafter 314,207 19,380 333,587 Total future minimum lease payments receivable $ 1,435,462 $ 99,522 $ 1,534,984 |
Schedule of Components of Container Leaseback Financing Receivable | The following table represents the components of the container leaseback financing receivable as of December 31, 2020 and 2019: 2020 2019 Future minimum payments receivable $ 505,473 $ 377,917 Less: unearned income (141,181 ) (106,259 ) Container leaseback financing receivable (1) 364,292 $ 271,658 Less: Allowance for credit losses (424 ) — Container leaseback financing receivable, net $ 363,868 $ 271,658 Amounts due within one year 27,076 20,547 Amounts due beyond one year 336,792 251,111 Container leaseback financing receivable, net $ 363,868 $ 271,658 (1) As of December 31, 2020, two customers represented 89.7% and 10.3% of the Company’s container leaseback financing receivable portfolio. 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 Finance Leases | Net Investment in Finance Leases The following table represents the components of the net investment in finance leases as of December 31, 2020 and 2019: 2020 2019 Future minimum lease payments receivable $ 1,216,086 $ 385,589 Residual value of containers 12,601 11,143 Less: unearned income (347,394 ) (101,429 ) Net investment in finance leases (1) $ 881,293 $ 295,303 Less: Allowance for credit losses (1,333 ) — Net investment in finance leases, net $ 879,960 $ 295,303 Amounts due within one year $ 78,459 $ 40,940 Amounts due beyond one year 801,501 254,363 Net investment in finance leases, net $ 879,960 $ 295,303 (1) As of December 31, 2020, two major customers represented 80.1% and 8.6% of the Company’s finance lease portfolio. As of December 31, 2019, two major customers represented 44.3% and 16.1% of the Company’s finance lease portfolio. No other customer represented more than 10% of the Company’s finance leases portfolio as of December 31, 2020 and 2019. |
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 container leaseback financing receivable and net investment in finance leases as of December 31, 2020: Year ending December 31: Container Leaseback Financing Receivable Net Investment in Finance Leases Total 2021 $ 47,819 $ 126,661 $ 174,480 2022 47,819 109,333 157,152 2023 47,819 103,757 151,576 2024 43,723 97,527 141,250 2025 and thereafter 318,293 778,808 1,097,101 Total future minimum lease payments receivable $ 505,473 $ 1,216,086 $ 1,721,559 |
Schedule of Other Information Related to Operating Leases | Other information related to the Company's operating leases are as follows: 2020 2019 Operating lease cost $ 2,103 $ 2,095 Short-term and variable lease cost 128 138 Total rent expense $ 2,231 $ 2,233 Cash paid for amounts included in the measurement of lease liabilities $ 2,221 $ 2,098 2020 2019 Weighted-average remaining lease term 4.8 years 5.4 years Weighted-average discount rate 4.6% 4.2% |
Minimum Lease Payment under Noncancelable Operating Leases | Future minimum lease payment obligations under the Company’s noncancelable operating leases at December 31, 2020 were as follows: Operating leasing Year ending December 31: 2021 2,273 2022 2,253 2023 2,328 2024 2,305 2025 and thereafter 5,236 Total minimum lease payments 14,395 Less imputed interest (1,759 ) Total present value of operating lease liabilities $ 12,636 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Allowance For Credit Loss [Abstract] | |
Summary of Net Investment in Finance Leases and Container Leaseback Financing Receivable | The following table presents the net investment in finance leases and container leaseback financing receivable by internal credit rating category and year of origination as of December 31, 2020: Year Ended December 31, 2020 2019 2018 2017 2016 Prior Total Tier 1 $ 571,226 $ 111,206 $ 35,580 $ 7,221 $ — $ 36,625 $ 761,858 Tier 2 40,657 37,176 21,164 53 5,153 3,505 107,708 Tier 3 2,624 7,145 1,132 — 42 784 11,727 Net investment in finance leases $ 614,507 $ 155,527 $ 57,876 $ 7,274 $ 5,195 $ 40,914 $ 881,293 Tier 1 $ 113,383 $ 213,386 $ — $ — $ — $ — $ 326,769 Tier 2 — 37,523 — — — — 37,523 Tier 3 — — — — — — — Container leaseback financing receivable $ 113,383 $ 250,909 $ — $ — $ — $ — $ 364,292 |
Summary of Changes in Carrying Amount of Allowance for Credit Losses | The changes in the carrying amount of the allowance for credit losses during the year ended December 31, 2020 are as follows: Accounts Receivable Net Investment in Finance Leases Container Leaseback Financing Receivable Total Allowance for Credit Losses Balance as of December 31, 2019 $ 6,299 $ — $ — $ 6,299 Impact of adopting ASU 2016-13 on January 1, 2020 — 636 256 892 Additions charged to expense (recovery), net (3,149 ) 697 168 (2,284 ) Write-offs (487 ) — — (487 ) Balance as of December 31, 2020 $ 2,663 $ 1,333 $ 424 $ 4,420 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020, 2019 and 2018 consisted of the following: 2020 2019 2018 Current Bermuda — $ — $ — Foreign 446 499 1,407 446 499 1,407 Deferred Bermuda — — — Foreign (819 ) 1,449 618 (819 ) 1,449 618 $ (374 ) $ 1,948 $ 2,025 |
Components of Income Before Income Taxes and Noncontrolling Interest | The components of income before income taxes and noncontrolling interest were as follows: 2020 2019 2018 Bermuda sources $ — $ — $ — Foreign sources 73,299 58,504 56,275 $ 73,299 $ 58,504 $ 56,275 |
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 operations is as follows: 2020 2019 2018 Bermuda tax rate $ — 0.00 % $ — 0.00 % $ — 0.00 % Foreign tax rate (1,291 ) (1.76 )% 188 0.32 % (142 ) (0.25 )% Tax uncertainties 917 1.25 % 1,760 3.01 % 2,167 3.85 % $ (374 ) (0.51 )% $ 1,948 3.33 % $ 2,025 3.60 % The components of income tax expense and effective tax rate were as follows: 2020 2019 2018 Income before income tax and noncontrolling interests $ 73,299 $ 58,504 $ 56,275 Tax uncertainties $ 917 1.25 % $ 1,760 3.01 % $ 2,167 3.85 % Foreign taxes Stock base compensation 8 0.01 % 405 0.69 % 128 0.23 % Adjustment for prior years 47 0.06 % 270 0.46 % 367 0.65 % Foreign derived intangible income (112 ) (0.15 )% (77 ) (0.13 )% (199 ) (0.35 )% Valuation allowance 67 0.09 % 315 0.54 % 272 0.48 % Foreign rate difference (1,333 ) (1.82 )% (778 ) (1.33 )% (758 ) (1.35 )% Other 32 0.04 % 53 0.09 % 48 0.09 % (1,291 ) (1.76 )% 188 0.32 % (142 ) (0.25 )% $ (374 ) (0.51 )% $ 1,948 3.33 % $ 2,025 3.60 % |
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, 2020 and 2019 are presented below: 2020 2019 Deferred tax assets Net operating loss carryforwards $ 19,284 $ 19,410 Other 1,457 1,568 20,741 20,978 Valuation allowance (382 ) (707 ) Deferred tax assets 20,359 20,271 Deferred tax liabilities Containers, net 25,043 25,975 Other 654 697 Deferred tax liabilities 25,697 26,672 Net deferred tax liabilities $ 5,338 $ 6,401 |
Reconciliation of Beginning and Ending Unrecognized Tax Benefit Amount | A reconciliation of the beginning and ending unrecognized tax benefit amounts for 2020 and 2019 are as follows: 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 Increases related to prior year tax positions 19 Increases related to current year tax positions 2,357 Lapse of statute of limitations (1,444 ) Balance at December 31, 2020 $ 20,575 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt Obligation | The following represents the Company’s debt obligations as of December 31, 2020 and 2019: 2020 2019 Outstanding Average Interest Outstanding Average Interest Final Maturity TL Revolving Credit Facility $ 1,433,919 1.65 % $ 1,280,037 3.29 % September 2023 TL 2019 Term Loan 148,131 3.50 % 158,371 3.50 % December 2026 TMCL II Secured Debt Facility (1) 646,551 1.91 % 689,658 3.49 % July 2026 TMCL VI Term Loan 223,630 4.29 % 249,421 4.30 % February 2038 TMCL VII 2019-1 Bonds 300,305 4.02 % 327,563 4.02 % April 2044 TMCL VII 2020-1 Bonds 429,600 3.07 % — 0.00 % August 2045 TMCL VII 2020-2 Bonds 587,183 2.26 % — 0.00 % September 2045 TMCL VII 2020-3 Bonds 214,168 2.15 % — 0.00 % September 2045 TAP Funding Revolving Credit Facility 131,857 2.11 % 152,824 3.69 % December 2021 TMCL V 2017-1 Bonds — 0.00 % 316,395 3.91 % May 2042 TMCL V 2017-2 Bonds — 0.00 % 395,836 3.73 % June 2042 TMCL VII 2018-1 Bonds — 0.00 % 227,624 4.14 % July 2043 Total debt obligations $ 4,115,344 $ 3,797,729 Amount due within one year $ 408,365 $ 242,433 Amounts due beyond one year $ 3,706,979 $ 3,555,296 (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. |
Estimated Future Scheduled Repayments | The following is a schedule of future scheduled repayments, by year, and borrowing capacities, as of December 31, 2020: Twelve months ending December 31, Available borrowing, Current and Available Borrowing, 2021 2022 2023 2024 2025 and thereafter Total Borrowing as limited by the Borrowing Base as limited by the Borrowing Base TL Revolving Credit Facility $ 31,316 $ 135,245 $ 1,271,939 $ — $ — $ 1,438,500 $ 61,500 $ 1,500,000 TL 2019 Term Loan 10,898 11,285 11,686 12,102 103,506 149,477 — — TMCL II Secured Debt Facility (1) 51,964 56,707 56,439 56,439 427,981 649,531 4,906 654,437 TMCL VI Term Loan 25,206 25,206 25,206 25,206 124,300 225,123 — — TMCL VII 2019-1 Bonds (2) 28,000 28,000 28,000 28,000 191,333 303,333 — — TMCL VII 2020-1 Bonds (2) 52,906 56,170 56,925 57,669 210,617 434,288 — — TMCL VII 2020-2 Bonds (2) 63,858 60,569 66,179 68,745 334,301 593,652 — — TMCL VII 2020-3 Bonds (2) 20,111 20,111 20,111 20,111 135,528 215,972 — — TAP Funding Revolving Credit Facility 132,150 — — — — 132,150 3,686 135,836 Total (3) $ 416,408 $ 393,294 $ 1,536,486 $ 268,272 $ 1,527,566 $ 4,142,026 $ 70,091 $ 2,290,272 (1) The estimated future repayments for TMCL II Secured Debt Facility is based on the assumption that the facility will not be extended on its associated conversion date. ( 2 ) Amounts on the TMCL VII 2019-1 Bonds, TMCL VII 2020-1 Bonds, TMCL VII 2020-2 Bonds, TMCL VII 2020-3 Bonds, exclude an unamortized discount of $81, $79, $157 and $82, respectively. ( 3 ) Future scheduled payments for all debts exclude unamortized prepaid debt issuance costs in an aggregate amount of $26,283. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instrument Detail [Abstract] | |
Summary of Derivative Instruments | The following is a summary of the Company’s derivative instruments as of December 31, 2020: Notional Derivative instruments amount Interest rate swap contracts with several banks, with fixed rates between 1.73% and 2.94% per annum, amortizing notional amounts, with termination dates through January 15, 2023, non-designated $ 536,000 Interest rate swap contracts with several banks, with fixed rates between 0.17% and 1.58% per annum, amortizing notional amounts, with termination dates through April 30, 2027, designated 768,250 Interest rate cap contract at 3.00% fixed rate with a termination date of December 31, 2021 30,000 Total notional amount as of December 31, 2020 $ 1,334,250 |
Notional Amount and Fair Value of Derivative Instruments | The following table summarizes the notional amount and fair value of derivative instruments, which are inclusive of counterparty risk, as of December 31, 2020 and 2019: 2020 2019 Notional Derivative Amount Notional Derivative Amount Assets Interest rate swaps - designated as hedges $ 75,000 $ 47 $ — $ — Interest rate swaps - not designated as hedges — — 168,000 135 Total $ 75,000 $ 47 $ 168,000 $ 135 Liabilities Interest rate swaps - designated as hedges $ 693,250 $ 9,665 $ 110,000 $ 117 Interest rate swaps - not designated as hedges 536,000 19,570 628,500 13,661 Total $ 1,229,250 $ 29,235 $ 738,500 $ 13,778 |
Summary of Pre-tax Impact of Derivative Instruments on Consolidated Statements of Operations and Comprehensive Income | The following table summarizes the pre-tax impact of derivative instruments on the consolidated statements of operations and comprehensive income during the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Derivative instruments Financial Statement Caption Non-designated derivative instruments Realized (loss) gain on derivative instruments, net $ (12,295 ) $ 1,939 $ 5,238 Non-designated derivative instruments Unrealized loss on derivative instruments, net $ (6,044 ) $ (15,442 ) $ (5,790 ) Designated derivative instruments Other comprehensive loss $ (12,307 ) $ (110 ) $ — Designated derivative instruments Interest expense, net $ (2,806 ) $ 7 $ — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information Reconciled to Income before Tax and Noncontrolling Interest | The following tables show segment information for 2020, 2019 and 2018, reconciled to the Company’s income before income tax and noncontrolling interests as shown in its consolidated statements of operations: Container Container Container 2020 Ownership Management Resale Other Eliminations Totals Lease rental income - owned fleet $ 537,534 $ 891 $ — $ — $ — $ 538,425 Lease rental income - managed fleet — 62,448 — — — 62,448 Lease rental income $ 537,534 $ 63,339 $ — $ — $ — $ 600,873 Management fees - non-leasing from external customers $ 392 $ 129 $ 4,750 $ — $ — $ 5,271 Inter-segment management fees $ — $ 54,899 $ 12,575 $ — $ (67,474 ) $ — Trading container margin $ — $ — $ 3,532 $ — $ — $ 3,532 Gain on sale of owned fleet containers, net $ 27,230 $ — $ — $ — $ — $ 27,230 Depreciation expense $ 268,401 $ 939 $ — $ — $ (7,675 ) $ 261,665 Container lessee default recovery, net $ 1,675 $ — $ — $ — $ — $ 1,675 Interest expense $ 122,863 $ 367 $ — $ — $ — $ 123,230 Write-off of unamortized deferred debt issuance costs and bond discounts $ 8,750 $ — $ — $ — $ — $ 8,750 Realized loss on derivative instruments, net $ 12,295 $ — $ — $ — $ — $ 12,295 Unrealized loss on derivative instruments, net $ 6,044 $ — $ — $ — $ — $ 6,044 Segment income (loss) before income tax and noncontrolling interests (1) $ 41,831 $ 23,641 $ 16,433 $ (3,254 ) $ (5,352 ) $ 73,299 Total assets $ 5,641,866 $ 180,933 $ 12,050 $ 13,691 $ (107,164 ) $ 5,741,376 Purchase of containers and fixed assets $ 968,204 $ 194 $ — $ — $ — $ 968,398 Payments on container leaseback financing receivable $ 116,263 $ — $ — $ — $ — $ 116,263 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 (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized loss on derivative instruments, net of $ 6,044 , $ 15,442 and $5,790 for the years ended December 31, 2020 , 2019 and 201 8 , respectively , and write-off of unamortized deferred debt issuance costs and bond discounts of $ 8,750 , $ 0 and $ 881 for the years ended December 31, 2020, 2019 and 2018 , 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, 2020, 2019 and 2018 based on customers’ and Container Investors’ primary domicile: Years ended December 31, 2020 Percent of Total 2019 Percent of Total 2018 Percent of Total Lease rental income: Asia $ 302,709 50.4 % $ 329,567 53.2 % $ 319,286 52.1 % Europe 266,431 44.3 % 255,495 41.2 % 255,753 41.7 % North / South America 29,391 4.9 % 31,786 5.1 % 34,053 5.6 % All other international 2,342 0.4 % 2,912 0.5 % 3,612 0.6 % $ 600,873 100.0 % $ 619,760 100.0 % $ 612,704 100.0 % Management fees, non-leasing: Bermuda $ 2,797 53.1 % $ 4,576 60.2 % $ 4,418 51.8 % Europe 2,397 45.5 % 2,334 30.8 % 2,089 24.5 % Asia 11 0.2 % 28 0.4 % 7 0.1 % North / South America 9 0.2 % 342 4.5 % 1,970 23.1 % All other international 57 1.0 % 310 4.1 % 45 0.5 % $ 5,271 100.0 % $ 7,590 100.0 % $ 8,529 100.0 % |
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, 2020, 2019 and 2018 based on the location of sale: Years ended December 31, 2020 Percent of Total 2019 Percent of Total 2018 Percent of Total Trading container sales proceeds: Asia $ 14,896 46.6 % $ 39,519 67.3 % $ 13,117 67.0 % North / South America 13,045 40.9 % 12,788 21.8 % 2,893 14.8 % Europe 3,991 12.5 % 6,411 10.9 % 3,487 17.8 % All other international 9 0.0 % 16 0.0 % 71 0.4 % $ 31,941 100.0 % $ 58,734 100.0 % $ 19,568 100.0 % Gain on sale of owned fleet containers, net: Asia $ 13,082 48.1 % $ 7,714 36.0 % $ 18,593 51.5 % North / South America 8,610 31.6 % 6,809 31.8 % 7,043 19.5 % Europe 5,538 20.3 % 5,577 26.1 % 9,622 26.7 % Bermuda — — — 0.0 % — — All other international — — 1,297 6.1 % 813 2.3 % $ 27,230 100.0 % $ 21,397 100.0 % $ 36,071 100.0 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 consisted of the following: 2020 2019 Trust accounts $ 17,054 $ 12,822 Other restricted cash accounts 57,093 84,531 Total restricted cash $ 74,147 $ 97,353 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Activity of Stock Option in 2019 Plan | The following tables summarizes the activity of stock options in the 2019 Plan for the years ended December 31, 2020, 2019, and 2018: Share options (common share equivalents) Weighted average exercise price 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 exercised during the period (113,960 ) $ 11.36 Options expired during the period (130,711 ) $ 26.14 Options forfeited during the period (33,968 ) $ 12.40 Balances, December 31, 2020 1,529,026 $ 19.90 Options exercisable at December 31, 2020 1,189,058 $ 22.21 Options vested and expected to vest at December 31, 2020 1,510,274 $ 20.01 |
Summary of Information About Share Options Exercisable and Outstanding | The following table summarizes information about share options exercisable and outstanding at December 31, 2020: 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 50,067 $ 9.13 226,874 $ 9.13 $9.46 2,500 $ 9.46 5,000 $ 9.46 $9.70 210,359 $ 9.70 210,359 $ 9.70 $9.75 2,813 $ 9.75 3,750 $ 9.75 $11.15 92,946 $ 11.15 202,560 $ 11.15 $12.23 - $14.17 158,254 $ 14.05 158,254 $ 14.05 $22.95 150,391 $ 22.95 200,501 $ 22.95 $28.05 - $28.54 215,514 $ 28.27 215,514 $ 28.27 $34.14 162,639 $ 34.14 162,639 $ 34.14 $ 38.36 143,575 $ 38.36 143,575 $ 38.36 1,189,058 $ 22.21 1,529,026 $ 19.90 |
Fair Value of Stock Option/PSU Awards Granted Assumptions Used | The Company did not grant any stock options during the year ended December 31, 2020. The estimated weighted average grant date fair value of share options granted during 2019 and 2018 was $4.47 and $5.40 per share, respectively, and was estimated using the Black-Scholes option pricing model for the years ended December 31, 2019 and 2018 with the following assumptions.: 2019 2018 Risk-free interest rates 1.7 % 2.9 % Expected terms (in years) 5.5 5.5 Expected common share price volatilities 52.9 % 49.8 % Expected dividends 0.0 % 0.0 % Expected forfeitures 3.4 % 4.3 % There were no PSU awards PSU awards 2020 Risk-free interest rates 0.16 % Expected common share price volatilities 57.4 % Expected dividends 0.0 % |
Summary of Activity of RSU and PSU Awards Under the 2019 Plan | The following tables summarizes the activity of RSU and PSU awards under the 2019 Plan for the years ended December 31, 2020, 2019, and 2018: RSU and PSU Weighted average grant date fair value 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 granted during the period (1) 384,428 $ 16.96 Share units vested during the period (300,404 ) $ 12.08 Share units forfeited during the period (19,743 ) $ 12.62 Balances, December 31, 2020 721,901 $ 14.55 Share units outstanding and expected to vest at December 31, 2020 677,055 $ 14.48 (1) Share units granted during the year ended December 31, 2020 includes 183,560 shares of PSU awards with a grant date fair value of $22.06 per share. On the settlement date for each measurement period of market-based awards, grantees may receive shares equal to 0% to 200% of the awards granted depending upon the achievement of certain market criteria based on the Company’s TSR relative to the peer group during the three-year There were no PSU awards granted during the years ended December 31, 2019 and 2018. |
Nature of Business and Summar_4
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail) | Dec. 20, 2012PersonVotingRight | Dec. 31, 2020USD ($)LesseeLeaseCustomer | Dec. 31, 2019USD ($)LesseeLeaseCustomer | Dec. 31, 2018USD ($)LesseeCustomer | Dec. 31, 2022USD ($) | Jan. 20, 2021 | Jan. 19, 2021 | Jan. 01, 2020USD ($) |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Gain on settlement of pre-existing management agreement | $ 1,823,000 | |||||||
Write-off intangible assets from the relinquishment of management rights | $ 0 | 2,000 | ||||||
Amortization expense | 2,572,000 | 2,093,000 | $ 3,721,000 | |||||
Retained earnings | 938,395,000 | 866,458,000 | ||||||
Foreign currency exchange losses | 251,000 | 393,000 | 1,085,000 | |||||
Prepaid expenses and other current assets | $ 13,713,000 | 14,816,000 | ||||||
Gain on container recovery | 14,881,000 | 8,692,000 | ||||||
Minimum likelihood of tax benefits being recognized | 50.00% | |||||||
Debt issuance cost | $ 13,637,000 | 9,417,000 | 10,285,000 | |||||
Amortization of debt issuance costs | 7,712,000 | 7,369,000 | 8,400,000 | |||||
Write off of unamortized debt issuance cost | 0 | |||||||
Direct container expenses paid in various foreign currencies | $ 15,225,000 | $ 10,527,000 | $ 11,141,000 | |||||
Percentage of direct container expenses paid in various foreign currencies | 28.00% | 23.00% | 21.00% | |||||
Share-based compensation expense | $ 4,723,000 | $ 4,388,000 | $ 7,355,000 | |||||
Fair value of net investment in direct financing and sales-type leases | 856,392,000 | 299,275,000 | ||||||
Net investment in direct financing and sales-type leases | 879,960,000 | 295,303,000 | ||||||
Fair value of container leaseback financing receivable | 363,774,000 | 267,551,000 | ||||||
Net of container leaseback financing receivable | 363,868,000 | 271,658,000 | ||||||
Fair value of long-term debt | 4,144,332,000 | 3,798,683,000 | ||||||
Long-term debt | $ 4,115,344,000 | $ 3,797,729,000 | ||||||
Stock Options And Restricted Stock Units | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Expected forfeiture rate | 3.50% | 3.40% | 4.30% | |||||
Share-based compensation expense | $ 4,723,000 | $ 4,388,000 | $ 7,355,000 | |||||
General and Administrative Expenses | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Share-based compensation expense | $ 4,257,000 | $ 3,780,000 | $ 6,746,000 | |||||
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 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 | 98.00% | 95.60% | ||||||
Percentage of company's gross finance lease receivable | 99.80% | 97.50% | ||||||
TL Revolving Credit Facility | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Write off of unamortized debt issuance cost | $ 529,000 | |||||||
TAP Funding Revolving Credit Facility | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Write off of unamortized debt issuance cost | $ 122,000 | |||||||
TMCL 2017 - 1 Bonds | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Write off of unamortized debt issuance cost | 8,628,000 | |||||||
TL Term Loan | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Write off of unamortized debt issuance cost | 352,000 | |||||||
TMCL 2017 - 2 Bonds | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Write off of unamortized debt issuance cost | 8,628,000 | |||||||
TMCL 2018 - 1 Bonds | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Write off of unamortized debt issuance cost | 8,628,000 | |||||||
Insolvent Customer | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Gain on container recovery | 1,644,000 | $ 1,488,000 | ||||||
Containers | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Asset impairment charges | 0 | 0 | 0 | |||||
Impairment (recovery) charges to write-off containers | (1,647,000) | 7,179,000 | 12,980,000 | |||||
Gain on container recovery | 1,647,000 | 1,988,000 | 0 | |||||
Containers for Sale | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Asset impairment charges | 11,094,000 | 14,238,000 | $ 13,795,000 | |||||
Revision of Prior Period Accounting Standards Update Adjustment | ASU 2016-03 | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Retained earnings | $ 892,000 | |||||||
Revision of Prior Period Accounting Standards Update Adjustment | ASU 2018-15 | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Prepaid expenses and other current assets | $ 4,212,000 | |||||||
Forecast | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Amortization expense | $ 2,719,000 | |||||||
LAPCO Acquisition | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Gain on settlement of pre-existing management agreement | $ 1,823,000 | |||||||
TL | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Ownership percentage in TW Container Leasing, Ltd. | 50.10% | |||||||
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% | |||||||
Tap Funding Limited | Subsequent Event | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Ownership percentage in TW Container Leasing, Ltd. | 100.00% | 49.90% | ||||||
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 | Containers | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Sales data analysis period | 10 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% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Restricted Cash And Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 131,018 | $ 180,552 | $ 137,298 | |
Restricted cash included in long-term assets | 74,147 | 97,353 | 87,630 | |
Cash, cash equivalents and restricted cash, end of period | $ 205,165 | $ 277,905 | $ 224,928 | $ 237,569 |
Estimated Useful Lives and Resi
Estimated Useful Lives and Residual Value of Containers (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 | $ 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 | $ 4,000 |
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, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Containers, cost | $ 5,744,643 | $ 5,599,318 |
Containers, accumulated depreciation | (1,619,591) | (1,443,167) |
Containers, net book value | 4,125,052 | 4,156,151 |
Dry Containers Other Than Open Top And Flat Rack Containers, 20' | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 1,532,753 | 1,627,878 |
Containers, accumulated depreciation | (428,913) | (396,247) |
Containers, net book value | 1,103,840 | 1,231,631 |
Dry Containers Other Than Open Top And Flat Rack Containers, 40' | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 144,881 | 167,011 |
Containers, accumulated depreciation | (55,154) | (58,852) |
Containers, net book value | 89,727 | 108,159 |
Dry Containers Other Than Open Top And Flat Rack Containers, 40' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 2,717,384 | 2,510,937 |
Containers, accumulated depreciation | (672,416) | (592,374) |
Containers, net book value | 2,044,968 | 1,918,563 |
Dry Containers Other Than Open Top And Flat Rack Containers, 45' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 27,880 | 28,670 |
Containers, accumulated depreciation | (12,747) | (11,488) |
Containers, net book value | 15,133 | 17,182 |
Refrigerated Containers, 20' | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 20,164 | 20,484 |
Containers, accumulated depreciation | (8,493) | (7,258) |
Containers, net book value | 11,671 | 13,226 |
Refrigerated Containers, 20' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 2,605 | 5,139 |
Containers, accumulated depreciation | (1,742) | (3,090) |
Containers, net book value | 863 | 2,049 |
Refrigerated Containers, 40' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 1,103,817 | 1,052,707 |
Containers, accumulated depreciation | (398,721) | (338,068) |
Containers, net book value | 705,096 | 714,639 |
Open Top and Flat Rack Containers, 20' Folding Flat Rack | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 17,228 | 17,617 |
Containers, accumulated depreciation | (5,132) | (4,538) |
Containers, net book value | 12,096 | 13,079 |
Open Top And Flat Rack Containers, 40' Folding Flat Rack | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 49,167 | 51,152 |
Containers, accumulated depreciation | (18,275) | (17,278) |
Containers, net book value | 30,892 | 33,874 |
Open Top And Flat Rack Containers, 20' Open Top | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 13,253 | 13,259 |
Containers, accumulated depreciation | (1,790) | (1,625) |
Containers, net book value | 11,463 | 11,634 |
Open Top And Flat Rack Containers, 40' Open Top | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 22,271 | 23,313 |
Containers, accumulated depreciation | (4,738) | (4,351) |
Containers, net book value | 17,533 | 18,962 |
Tank containers | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 93,240 | 81,151 |
Containers, accumulated depreciation | (11,470) | (7,998) |
Containers, net book value | $ 81,770 | $ 73,153 |
Net Gain on Sale of Owned Fleet
Net Gain on Sale of Owned Fleet Containers (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)Property | Dec. 31, 2019USD ($)Property | Dec. 31, 2018USD ($)Property | |
Property Plant And Equipment Disclosure [Line Items] | |||
Number of owned fleet containers sold | Property | 106,348 | 104,445 | 107,410 |
Gain on sale of owned fleet containers, net | $ | $ 27,230 | $ 21,397 | $ 36,071 |
Previously written down containers | |||
Property Plant And Equipment Disclosure [Line Items] | |||
Number of owned fleet containers sold | Property | 51,541 | 52,319 | 28,291 |
Gain on sale of owned fleet containers, net | $ | $ 15,451 | $ 6,665 | $ 14,563 |
Containers not written down | |||
Property Plant And Equipment Disclosure [Line Items] | |||
Number of owned fleet containers sold | Property | 54,807 | 52,126 | 79,119 |
Gain on sale of owned fleet containers, net | $ | $ 11,779 | $ 14,732 | $ 21,508 |
Schedule of Concentration Risk
Schedule of Concentration Risk of Lease Rental Income (Detail) - Lease Rental Income - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Customer A | |||
Concentration Risk [Line Items] | |||
Percentage of lease rental income | 18.40% | 15.40% | 14.00% |
Customer B | |||
Concentration Risk [Line Items] | |||
Percentage of lease rental income | 12.70% | 13.30% | 13.40% |
Customer C | |||
Concentration Risk [Line Items] | |||
Percentage of lease rental income | 9.40% | 8.30% | 8.40% |
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, 2020 | Dec. 31, 2019 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 30.30% | 17.10% |
Customer B | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 12.90% | 11.20% |
Customer C | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 10.30% | 7.00% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Customer A | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 17.80% | 14.80% | 13.80% |
Customer B | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 13.30% | 13.50% | 13.70% |
Customer C | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 9.70% | 8.70% | 8.70% |
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, 2020 | Dec. 31, 2019 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 37.70% | 16.60% |
Customer C | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 16.70% | 7.70% |
Customer B | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 11.60% | 12.00% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Switzerland | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 20.50% | 13.30% | 14.10% |
France | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 12.70% | 14.00% | 13.80% |
Taiwan | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 12.30% | 15.50% | 14.60% |
People's Republic of China | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 11.80% | 14.10% | 15.00% |
Singapore | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 11.00% | 11.10% | 10.50% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||
Net income attributable to Textainer Group Holdings Limited common shareholders | $ 72,822 | $ 56,724 | $ 50,378 |
Weighted average shares outstanding (in thousands): | |||
Weighted average common shares outstanding-- basic | 53,271 | 57,349 | 57,200 |
Dilutive share options and RSUs | 210 | 110 | 287 |
Weighted average common shares outstanding-- diluted | 53,481 | 57,459 | 57,487 |
Net income attributable to Textainer Group Holdings Limited common shareholders per common share | |||
Basic | $ 1.37 | $ 0.99 | $ 0.88 |
Diluted | $ 1.36 | $ 0.99 | $ 0.88 |
Share options, RSUs and PSUs excluded from the computation of diluted EPS because they were anti-dilutive | 1,674 | 1,805 | 1,232 |
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, 2020 | Dec. 31, 2019 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Asset cumulative impairment charges | [1] | $ 2,118 | $ 6,346 |
Containers held for sale | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Asset cumulative impairment charges | [1],[2] | 2,118 | 6,346 |
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 | 5,845 | 22,217 | |
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] | $ 5,845 | $ 22,217 |
[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. |
Insurance Receivable and Impa_3
Insurance Receivable and Impairment - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | |
Leases Disclosure [Line Items] | ||||
Containers, net book value | $ 4,125,052,000 | $ 4,156,151,000 | ||
Lease loss recovery period by insurance | 183 days | |||
Bad debt expense | (1,668,000) | 2,002,000 | $ 2,697,000 | |
Gain on container recovery | 14,881,000 | 8,692,000 | ||
Insurance payment received | 9,814,000 | |||
Gain on insurance recovery | $ 14,881,000 | 8,692,000 | ||
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 | |||
Bad debt expense | 2,921,000 | 2,049,000 | ||
Cash collections from insolvent customer | 3,091,000 | |||
Insurance receivable | 2,106,000 | 1,792,000 | 0 | |
Recovery of direct costs | 314,000 | 1,383,000 | 4,864,000 | |
Gain on container recovery | 1,644,000 | 1,488,000 | ||
Gain on insurance recovery | $ 1,644,000 | 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases Disclosure [Line Items] | |||
Estimated unrecovered containers, net of insurance deductible | $ 409,000 | ||
Recovery costs | $ 314,000 | 1,383,000 | $ 4,864,000 |
Insurance receivable related to this insolvent customer | $ 2,106,000 | $ 1,792,000 | $ 0 |
Managed Container Fleet - Addit
Managed Container Fleet - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Deferred revenue from acquisition fees | $ 1,049 | $ 3,109 |
Managed Containers | ||
Property, Plant and Equipment [Line Items] | ||
Cash paid to purchase containers from container Investor | 12,515 | |
Containers, deemed financial liability | $ 4,762 | $ 17,449 |
Schedule of Company's Leasing E
Schedule of Company's Leasing Equipment for Owned and Managed Fleet (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Containers, cost | $ 5,744,643 | $ 5,599,318 |
Containers, accumulated depreciation | (1,619,591) | (1,443,167) |
Containers, net book value | 4,125,052 | 4,156,151 |
Containers - Owned Fleet | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 5,740,717 | 5,582,986 |
Containers, accumulated depreciation | (1,619,304) | (1,442,986) |
Containers, net book value | 4,121,413 | 4,140,000 |
Containers - Managed Fleet | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 3,926 | 16,332 |
Containers, accumulated depreciation | (287) | (181) |
Containers, net book value | $ 3,639 | $ 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||
Lease rental income - managed fleet | $ 62,448 | $ 101,901 | $ 111,342 |
Less: distribution expense to managed fleet container investors | (57,311) | (93,858) | (102,992) |
Less: depreciation and interest expense on managed containers purchased on or after January 1, 2019 | (730) | (394) | |
Leasing | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 4,407 | 7,649 | 8,350 |
Other Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 5,271 | 7,590 | 8,529 |
Total Management Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 9,678 | $ 15,239 | $ 16,879 |
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, 2020 | Dec. 31, 2019 |
Reconciliation Of Current Assets And Liabilities [Line Items] | ||
Total accounts receivable | $ 108,578 | $ 109,384 |
Total prepaid expenses and other current assets | 13,713 | 14,816 |
Total accounts payable and accrued expenses | 24,385 | 23,404 |
Total container contracts payable | 231,647 | 9,394 |
Owned Fleet | ||
Reconciliation Of Current Assets And Liabilities [Line Items] | ||
Total accounts receivable | 97,950 | 96,158 |
Total prepaid expenses and other current assets | 13,614 | 14,627 |
Total accounts payable and accrued expenses | 23,198 | 21,451 |
Total container contracts payable | 231,647 | 9,394 |
Managed Fleet | ||
Reconciliation Of Current Assets And Liabilities [Line Items] | ||
Total accounts receivable | 10,628 | 13,226 |
Total prepaid expenses and other current assets | 99 | 189 |
Total accounts payable and accrued expenses | $ 1,187 | $ 1,953 |
Transactions with Affiliates _3
Transactions with Affiliates and Container Investors - Additional Information (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Due from affiliates, net | $ 1,509,000 | $ 1,880,000 |
Due to container investors, net | 18,697,000 | 21,978,000 |
Affiliated Container Investors | ||
Related Party Transaction [Line Items] | ||
Due to container investors, net | $ 0 | $ 0 |
Total Management Fees Earned fr
Total Management Fees Earned from the Managed Fleet, Including Acquisition Fees and Sales Commissions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Fees from affiliated Container Investors | $ 3,527 | $ 3,575 | |
Fees from unaffiliated Container Investors | $ 9,678 | 11,374 | 11,334 |
Total Management Fees | |||
Related Party Transaction [Line Items] | |||
Management fees | 9,678 | 15,239 | 16,879 |
Total Management Fees | Fees from Container Investors | |||
Related Party Transaction [Line Items] | |||
Management fees | $ 9,678 | 14,901 | 14,909 |
Total Management Fees | Other Fees | |||
Related Party Transaction [Line Items] | |||
Management fees | $ 338 | $ 1,970 |
Summary of Due to Container Inv
Summary of Due to Container Investors, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Distributions due to container investors on lease rentals collected, net of container expenses paid and management fees | $ 9,157 | $ 10,516 |
Due to container investors, net | 18,697 | 21,978 |
Managed Fleet | ||
Related Party Transaction [Line Items] | ||
Accounts receivable | 10,628 | 13,226 |
Prepaid expenses and other current assets | 99 | 189 |
Accounts payable and accrued expenses | (1,187) | (1,953) |
Due from to related party | $ 9,540 | $ 11,462 |
Schedule of Lease Rental Income
Schedule of Lease Rental Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessor Lease Description [Line Items] | ||
Lease rental income - operating leases | $ 527,284 | $ 566,949 |
Interest income on net investment in finance leases | 30,121 | 15,356 |
Interest income on container leaseback financing receivable | 17,243 | 10,313 |
Variable lease revenue | 26,225 | 27,142 |
Total lease rental income | 600,873 | 619,760 |
Owned Fleet | ||
Lessor Lease Description [Line Items] | ||
Lease rental income - operating leases | 469,109 | 470,722 |
Interest income on net investment in finance leases | 30,121 | 15,356 |
Interest income on container leaseback financing receivable | 17,243 | 10,313 |
Variable lease revenue | 21,952 | 21,468 |
Total lease rental income | 538,425 | 517,859 |
Managed Fleet | ||
Lessor Lease Description [Line Items] | ||
Lease rental income - operating leases | 58,175 | 96,227 |
Variable lease revenue | 4,273 | 5,674 |
Total lease rental income | $ 62,448 | $ 101,901 |
Leases - Lessor - Additional In
Leases - Lessor - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessor Disclosure [Abstract] | ||
Direct financing and sales-type leases, (loss) gain | $ 144 | $ 1,027 |
Schedule Future Minimum Lease P
Schedule Future Minimum Lease Payments Receivable (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Lessor Lease Description [Line Items] | |
2021 | $ 394,264 |
2022 | 321,877 |
2023 | 274,356 |
2024 | 210,900 |
2025 and thereafter | 333,587 |
Total future minimum lease payments receivable | 1,534,984 |
Owned Fleet | |
Lessor Lease Description [Line Items] | |
2021 | 361,495 |
2022 | 302,704 |
2023 | 258,275 |
2024 | 198,781 |
2025 and thereafter | 314,207 |
Total future minimum lease payments receivable | 1,435,462 |
Managed Fleet | |
Lessor Lease Description [Line Items] | |
2021 | 32,769 |
2022 | 19,173 |
2023 | 16,081 |
2024 | 12,119 |
2025 and thereafter | 19,380 |
Total future minimum lease payments receivable | $ 99,522 |
Summary of Future Minimum Payme
Summary of Future Minimum Payments Receivable Under Container Leaseback Financing Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessor Disclosure [Abstract] | |||
Future minimum payments receivable | $ 505,473 | $ 377,917 | |
Less: unearned income | (141,181) | (106,259) | |
Container leaseback financing receivable | [1] | 364,292 | 271,658 |
Less: Allowance for credit losses | (424) | ||
Container leaseback financing receivable, net | 363,868 | 271,658 | |
Amounts due within one year | 27,076 | 20,547 | |
Amounts due beyond one year | $ 336,792 | $ 251,111 | |
[1] | As of December 31, 2020, two customers represented 89.7% and 10.3% of the Company’s container leaseback financing receivable portfolio. 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) - Customer | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessor Lease Description [Line Items] | ||
Number of customers represented container leaseback financing receivable portfolio | 2 | 2 |
Customer One | ||
Lessor Lease Description [Line Items] | ||
Percentage of container leaseback financing receivable portfolio. | 89.70% | 82.90% |
Customer Two | ||
Lessor Lease Description [Line Items] | ||
Percentage of container leaseback financing receivable portfolio. | 10.30% | 17.10% |
Components of net Investment in
Components of net Investment in Direct Financing and Sales-Type Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Future minimum lease payments receivable | $ 1,216,086 | $ 385,589 | |
Residual value of containers | 12,601 | 11,143 | |
Less: unearned income | (347,394) | (101,429) | |
Net investment in finance leases | [1] | 881,293 | 295,303 |
Less: Allowance for credit losses | (1,333) | ||
Net investment in finance leases, net | 879,960 | 295,303 | |
Amounts due within one year | 78,459 | 40,940 | |
Amounts due beyond one year | $ 801,501 | $ 254,363 | |
[1] | (1) As of December 31, 2020, two major customers represented 80.1% and 8.6% of the Company’s finance lease portfolio. As of December 31, 2019, two major customers represented 44.3% and 16.1% of the Company’s finance lease portfolio. No other customer represented more than 10% of the Company’s finance leases portfolio as of December 31, 2020 and 2019 |
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 | 2 |
Customer One | ||
Capital Leased Assets [Line Items] | ||
Percentage of direct financing and sales-type leases portfolio | 80.10% | 44.30% |
Customer Two | ||
Capital Leased Assets [Line Items] | ||
Percentage of direct financing and sales-type leases portfolio | 8.60% | 16.10% |
Future Minimum Lease Payments R
Future Minimum Lease Payments Receivable under Direct Financing and Sales-type Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Container leaseback financing receivable, 2021 | $ 47,819 | |
Container leaseback financing receivable, 2022 | 47,819 | |
Container leaseback financing receivable, 2023 | 47,819 | |
Container leaseback financing receivable, 2024 | 43,723 | |
Container leaseback financing receivable, 2025 and thereafter | 318,293 | |
Container leaseback financing receivable, Total future minimum lease payments receivable | 505,473 | $ 377,917 |
Net investment in finance leases, 2021 | 126,661 | |
Net investment in finance leases, 2022 | 109,333 | |
Net investment in finance leases, 2023 | 103,757 | |
Net investment in finance leases, 2024 | 97,527 | |
Net investment in finance leases, 2025 and thereafter | 778,808 | |
Net investment in finance leases, Total future minimum lease payments receivable | 1,216,086 | $ 385,589 |
Future minimum lease payments receivable, 2021 | 174,480 | |
Future minimum lease payments receivable, 2022 | 157,152 | |
Future minimum lease payments receivable, 2023 | 151,576 | |
Future minimum lease payments receivable, 2024 | 141,250 | |
Future minimum lease payments receivable, 2025 and thereafter | 1,097,101 | |
Total future minimum lease payments receivable | $ 1,721,559 |
Leases - Lessee - Additional In
Leases - Lessee - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee Lease Description [Line Items] | |||
Operating lease liabilities | $ 12,636 | ||
Rent expense | 2,231 | $ 2,233 | $ 2,049 |
Other Assets | |||
Lessee Lease Description [Line Items] | |||
Right-of-use lease assets | 10,331 | 11,276 | |
Other Liabilities | |||
Lessee Lease Description [Line Items] | |||
Operating lease liabilities | 12,636 | 13,736 | |
Other Liabilities – Current | |||
Lessee Lease Description [Line Items] | |||
Lease liabilities current | 1,779 | 1,706 | |
Other Liabilities – Non-Current | |||
Lessee Lease Description [Line Items] | |||
Long-term lease obligations | $ 10,857 | $ 12,030 |
Schedule of Other Information R
Schedule of Other Information Related to Operating Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee Disclosure [Abstract] | |||
Operating lease cost | $ 2,103 | $ 2,095 | |
Short-term and variable lease cost | 128 | 138 | |
Total rent expense | 2,231 | 2,233 | $ 2,049 |
Cash paid for amounts included in the measurement of lease liabilities | $ 2,221 | $ 2,098 | |
Weighted-average remaining lease term | 4 years 9 months 18 days | 5 years 4 months 24 days | |
Weighted-average discount rate | 4.60% | 4.20% |
Minimum Lease Payment under Non
Minimum Lease Payment under Noncancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2021 | $ 2,273 |
2022 | 2,253 |
2023 | 2,328 |
2024 | 2,305 |
2025 and thereafter | 5,236 |
Total minimum lease payments | 14,395 |
Less imputed interest | (1,759) |
Total present value of operating lease liabilities | $ 12,636 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesMember |
Allowance for Credit Losses - A
Allowance for Credit Losses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable, allowance | $ 2,663 | $ 6,299 |
Container leaseback financing receivable, allowance for credit losses | 4,420 | 6,299 |
Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Container leaseback financing receivable, allowance for credit losses | $ 424 | |
Container Leaseback Financing Receivable | Accounts Receivable | Credit Concentration Risk | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Concentration risk percentage | 89.70% | |
Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Container leaseback financing receivable, allowance for credit losses | $ 1,333 | |
Finance Leases | Accounts Receivable | Credit Concentration Risk | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Concentration risk percentage | 86.40% | |
Billed | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable, allowance | $ 2,663 | 6,299 |
Billed | Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable, allowance | 0 | 0 |
Billed | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable, allowance | 735 | $ 675 |
Unbilled | Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Container leaseback financing receivable, allowance for credit losses | 424 | |
Unbilled | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Net investment in finance leases, allowance for credit loss | $ 1,333 |
Allowance for Credit Losses - S
Allowance for Credit Losses - Summary of Net Investment in Finance Leases and Container Leaseback Financing Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Net investment in finance leases, net | $ 879,960 | $ 295,303 |
Container leaseback financing receivable, net | 363,868 | $ 271,658 |
Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Year Ended December 31, 2020 | 614,507 | |
2019 | 155,527 | |
2018 | 57,876 | |
2017 | 7,274 | |
2016 | 5,195 | |
Prior | 40,914 | |
Net investment in finance leases, net | 881,293 | |
Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Year Ended December 31, 2020 | 113,383 | |
2019 | 250,909 | |
Container leaseback financing receivable, net | 364,292 | |
Tier 1 | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Year Ended December 31, 2020 | 571,226 | |
2019 | 111,206 | |
2018 | 35,580 | |
2017 | 7,221 | |
Prior | 36,625 | |
Net investment in finance leases, net | 761,858 | |
Tier 1 | Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Year Ended December 31, 2020 | 113,383 | |
2019 | 213,386 | |
Container leaseback financing receivable, net | 326,769 | |
Tier 2 | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Year Ended December 31, 2020 | 40,657 | |
2019 | 37,176 | |
2018 | 21,164 | |
2017 | 53 | |
2016 | 5,153 | |
Prior | 3,505 | |
Net investment in finance leases, net | 107,708 | |
Tier 2 | Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
2019 | 37,523 | |
Container leaseback financing receivable, net | 37,523 | |
Tier 3 | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Year Ended December 31, 2020 | 2,624 | |
2019 | 7,145 | |
2018 | 1,132 | |
2016 | 42 | |
Prior | 784 | |
Net investment in finance leases, net | $ 11,727 |
Allowance For Credit Losses -_2
Allowance For Credit Losses - Summary of Changes in Carrying Amount of Allowance for Credit Losses (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Balance as of December 31, 2019 | $ 6,299 |
Additions charged to expense (recovery), net | (2,284) |
Write-offs | (487) |
Balance as of December 31, 2020 | 4,420 |
Impact of adopting ASU 2016-13 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Balance as of December 31, 2019 | 892 |
Accounts Receivable | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Balance as of December 31, 2019 | 6,299 |
Additions charged to expense (recovery), net | (3,149) |
Write-offs | (487) |
Balance as of December 31, 2020 | 2,663 |
Net Investment in Finance Leases | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Additions charged to expense (recovery), net | 697 |
Balance as of December 31, 2020 | 1,333 |
Net Investment in Finance Leases | Impact of adopting ASU 2016-13 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Balance as of December 31, 2019 | 636 |
Container Leaseback Financing Receivable | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Additions charged to expense (recovery), net | 168 |
Balance as of December 31, 2020 | 424 |
Container Leaseback Financing Receivable | Impact of adopting ASU 2016-13 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Balance as of December 31, 2019 | $ 256 |
Component of Income Tax Expense
Component of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current | |||
Bermuda | $ 0 | $ 0 | $ 0 |
Foreign | 446 | 499 | 1,407 |
Current Income Tax Expense (Benefit), Total | 446 | 499 | 1,407 |
Deferred | |||
Bermuda | 0 | 0 | 0 |
Foreign | (819) | 1,449 | 618 |
Deferred Income Tax Expense (Benefit), Total | (819) | 1,449 | 618 |
Income tax (expense) benefit | $ (374) | $ 1,948 | $ 2,025 |
Components of Income Before Inc
Components of Income Before Income Taxes and Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Income Taxes [Line Items] | |||||
Income before income taxes and non controlling interest | $ 73,299 | [1] | $ 58,504 | [1] | $ 56,275 |
Foreign sources | |||||
Income Taxes [Line Items] | |||||
Income before income taxes and non controlling interest | $ 73,299 | $ 58,504 | $ 56,275 | ||
[1] | (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized loss on derivative instruments, net of $ 6,044 , $ 15,442 and $5,790 for the years ended December 31, 2020 , 2019 and 201 8 , respectively , and write-off of unamortized deferred debt issuance costs and bond discounts of $ 8,750 , $ 0 and $ 881 for the years ended December 31, 2020, 2019 and 2018 , 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Bermuda tax rate | 0.00% | 0.00% | 0.00% |
Foreign tax rate | (1.76%) | 0.32% | (0.25%) |
Tax uncertainties | 1.25% | 3.01% | 3.85% |
Income tax (expense) benefit, net | (0.51%) | 3.33% | 3.60% |
Foreign tax rate | $ (1,291) | $ 188 | $ (142) |
Tax uncertainties | 917 | 1,760 | 2,167 |
Income tax (expense) benefit | $ (374) | $ 1,948 | $ 2,025 |
Components of Income Tax Expens
Components of Income Tax Expense and Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Income Tax Disclosure [Abstract] | |||||
Income before income taxes and non controlling interest | $ 73,299 | [1] | $ 58,504 | [1] | $ 56,275 |
Tax uncertainties | 917 | 1,760 | 2,167 | ||
Stock base compensation | 8 | 405 | 128 | ||
Adjustment for prior years | 47 | 270 | 367 | ||
Foreign derived intangible income | (112) | (77) | (199) | ||
Valuation allowance | 67 | 315 | 272 | ||
Foreign rate difference | (1,333) | (778) | (758) | ||
Other | 32 | 53 | 48 | ||
Foreign taxes rate | (1,291) | 188 | (142) | ||
Income tax (expense) benefit | $ (374) | $ 1,948 | $ 2,025 | ||
Tax uncertainties | 1.25% | 3.01% | 3.85% | ||
Stock base compensation | 0.01% | 0.69% | 0.23% | ||
Adjustment for prior years | 0.06% | 0.46% | 0.65% | ||
Foreign derived intangible income | (0.15%) | (0.13%) | (0.35%) | ||
Valuation allowance | 0.09% | 0.54% | 0.48% | ||
Foreign rate difference | (1.82%) | (1.33%) | (1.35%) | ||
Other | 0.04% | 0.09% | 0.09% | ||
Foreign tax rate | (1.76%) | 0.32% | (0.25%) | ||
Income tax (expense) benefit, net | (0.51%) | 3.33% | 3.60% | ||
[1] | (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized loss on derivative instruments, net of $ 6,044 , $ 15,442 and $5,790 for the years ended December 31, 2020 , 2019 and 201 8 , respectively , and write-off of unamortized deferred debt issuance costs and bond discounts of $ 8,750 , $ 0 and $ 881 for the years ended December 31, 2020, 2019 and 2018 , respectively. |
Significant Portions of Deferre
Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 19,284 | $ 19,410 |
Other | 1,457 | 1,568 |
Deferred tax assets, gross | 20,741 | 20,978 |
Valuation allowance | (382) | (707) |
Deferred tax assets | 20,359 | 20,271 |
Deferred tax liabilities | ||
Containers, net | 25,043 | 25,975 |
Other | 654 | 697 |
Deferred tax liabilities | 25,697 | 26,672 |
Net deferred tax liabilities | $ 5,338 | $ 6,401 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Period for cumulative ownership change | 3 years | ||
Cumulative earnings undistributed | $ 41,441 | ||
Taxes payable current and noncurrent | 12,432 | ||
Unrecognized tax benefits | 20,575 | $ 19,642 | $ 18,145 |
Unrecognized tax benefits, if recognized, would reduce annual effective tax rate | 20,511 | ||
Estimated decrease in unrecognized tax benefits due to expiration of certain statutes of limitations in the next twelve months | 1,457 | ||
Income tax examination interest and penalty expense | (11) | 182 | $ 180 |
Income tax examination total accrued interest and penalties | 1,460 | $ 1,470 | |
U.S. Federal | |||
Income Taxes [Line Items] | |||
Net operating loss carry-forwards | 106,151 | ||
Net operating loss carry-forwards without expiration | $ 25,279 | ||
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, 2021 | ||
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, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Beginning Balance | $ 19,642 | $ 18,145 |
Decreases related to prior year tax positions | (82) | |
Increases related to prior year tax positions | 19 | |
Increases related to current year tax positions | 2,357 | 2,922 |
Lapse of statute of limitations | (1,444) | (1,343) |
Ending Balance | $ 20,575 | $ 19,642 |
Debt Obligation (Detail)
Debt Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Debt Instrument [Line Items] | |||
Long term debt | $ 4,115,344 | $ 3,797,729 | |
Amount due within one year | 408,365 | 242,433 | |
Amounts due beyond one year | 3,706,979 | 3,555,296 | |
TL 2019 Term Loan | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 148,131 | $ 158,371 | |
Weighted average variable interest rate | 3.50% | 3.50% | |
Fixed interest rate | 3.50% | ||
Final Maturity | Dec. 23, 2026 | ||
TMCL II Secured Debt Facility | |||
Debt Instrument [Line Items] | |||
Long term debt | [1] | $ 646,551 | $ 689,658 |
Weighted average variable interest rate | [1] | 1.91% | 3.49% |
Final Maturity | [1] | Jul. 31, 2026 | |
TMCL VI Term Loan | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 223,630 | $ 249,421 | |
Weighted average variable interest rate | 4.29% | 4.30% | |
Final Maturity | Feb. 28, 2038 | ||
TL Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 1,433,919 | $ 1,280,037 | |
Weighted average variable interest rate | 1.65% | 3.29% | |
Final Maturity | Sep. 30, 2023 | ||
TMCL VII 2019-1 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 300,305 | $ 327,563 | |
Fixed interest rate | 4.02% | 4.02% | |
Final Maturity | Apr. 30, 2044 | ||
TMCL VII 2020-1 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 429,600 | ||
Fixed interest rate | 3.07% | 0.00% | |
Final Maturity | Aug. 31, 2045 | ||
TMCL VII 2020-2 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 587,183 | ||
Fixed interest rate | 2.26% | 0.00% | |
Final Maturity | Sep. 30, 2045 | ||
TMCL VII 2020-3 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 214,168 | ||
Fixed interest rate | 2.15% | 0.00% | |
Final Maturity | Sep. 30, 2045 | ||
TAP Funding Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 131,857 | $ 152,824 | |
Weighted average variable interest rate | 2.11% | 3.69% | |
Final Maturity | Dec. 31, 2021 | ||
TMCL V 2017-1 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 316,395 | ||
Fixed interest rate | 0.00% | 3.91% | |
Final Maturity | May 31, 2042 | ||
TMCL V 2017-2 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 395,836 | ||
Fixed interest rate | 0.00% | 3.73% | |
Final Maturity | Jun. 30, 2042 | ||
TMCL VII 2018-1 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 227,624 | ||
Fixed interest rate | 0.00% | 4.14% | |
Final Maturity | Jul. 31, 2043 | ||
[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 - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Feb. 29, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Advance rate for finance lease containers | 80.00% | 78.00% | |
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 | ||
LIBOR plus interest rate | 1.75% | ||
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. | ||
TL Revolving Credit Facility | TL | Minimum | Eurodollar | |||
Debt Instrument [Line Items] | |||
LIBOR plus interest rate | 2.00% | ||
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 | ||
TAP Funding Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Aggregate maximum commitment amount | $ 190,000,000 | $ 155,000,000 | |
LIBOR plus interest rate | 1.95% | ||
TL 2019 Term Loan | |||
Debt Instrument [Line Items] | |||
Aggregate maximum commitment amount | $ 160,000,000 | ||
Percentage bearing fixed interest | 3.50% | ||
TMCL VI Term Loan | |||
Debt Instrument [Line Items] | |||
Aggregate maximum commitment amount | $ 300,000,000 | ||
TMCL V 2017-1 Bonds | |||
Debt Instrument [Line Items] | |||
Percentage bearing fixed interest | 0.00% | 3.91% | |
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 2017-2 Bonds | |||
Debt Instrument [Line Items] | |||
Percentage bearing fixed interest | 0.00% | 3.73% | |
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 VII 2018-1 Bonds | |||
Debt Instrument [Line Items] | |||
Percentage bearing fixed interest | 0.00% | 4.14% | |
TMCL VII 2018-1 Bonds | Class A Secured Debt Facility | |||
Debt Instrument [Line Items] | |||
Bonds issued | $ 250,000,000 | ||
TMCL VII 2018-1 Bonds | Class B Secured Debt Facility | |||
Debt Instrument [Line Items] | |||
Bonds issued | $ 9,100,000 | ||
TMCL VII 2019-1 Bonds | |||
Debt Instrument [Line Items] | |||
Percentage bearing fixed interest | 4.02% | 4.02% | |
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 2020-1 Bonds | |||
Debt Instrument [Line Items] | |||
Percentage bearing fixed interest | 3.07% | 0.00% | |
TMCL VII 2020-1 Bonds | Class A Secured Debt Facility | |||
Debt Instrument [Line Items] | |||
Bonds issued | $ 380,800,000 | ||
TMCL VII 2020-1 Bonds | Class B Secured Debt Facility | |||
Debt Instrument [Line Items] | |||
Bonds issued | $ 69,200,000 | ||
TMCL VII 2020-2 Bonds | |||
Debt Instrument [Line Items] | |||
Percentage bearing fixed interest | 2.26% | 0.00% | |
TMCL VII 2020-2 Bonds | Class A Secured Debt Facility | |||
Debt Instrument [Line Items] | |||
Bonds issued | $ 531,600,000 | ||
TMCL VII 2020-2 Bonds | Class B Secured Debt Facility | |||
Debt Instrument [Line Items] | |||
Bonds issued | $ 76,200,000 | ||
TMCL VII 2020-3 Bonds | |||
Debt Instrument [Line Items] | |||
Percentage bearing fixed interest | 2.15% | 0.00% | |
TMCL VII 2020-3 Bonds | Class A Secured Debt Facility | |||
Debt Instrument [Line Items] | |||
Bonds issued | $ 213,000,000 | ||
TMCL VII 2020-3 Bonds | Class B Secured Debt Facility | |||
Debt Instrument [Line Items] | |||
Bonds issued | $ 8,000,000 |
Estimated Future Scheduled Repa
Estimated Future Scheduled Repayments (Detail) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||
2021 | $ 416,408,000 | [1] |
2022 | 393,294,000 | [1] |
2023 | 1,536,486,000 | [1] |
2024 | 268,272,000 | [1] |
2025 and thereafter | 1,527,566,000 | [1] |
Long Term Debt, Carrying Amount, Total | 4,142,026,000 | [1] |
Available Borrowing, as Limited by the Borrowing Base | 70,091,000 | [1] |
Current and Available Borrowing | 2,290,272,000 | [1] |
TL Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
2021 | 31,316,000 | |
2022 | 135,245,000 | |
2023 | 1,271,939,000 | |
Long Term Debt, Carrying Amount, Total | 1,438,500,000 | |
Available Borrowing, as Limited by the Borrowing Base | 61,500,000 | |
Current and Available Borrowing | 1,500,000,000 | |
TL 2019 Term Loan | ||
Debt Instrument [Line Items] | ||
2021 | 10,898,000 | |
2022 | 11,285,000 | |
2023 | 11,686,000 | |
2024 | 12,102,000 | |
2025 and thereafter | 103,506,000 | |
Long Term Debt, Carrying Amount, Total | 149,477,000 | |
TMCL II Secured Debt Facility | ||
Debt Instrument [Line Items] | ||
2021 | 51,964,000 | [2] |
2022 | 56,707,000 | [2] |
2023 | 56,439,000 | [2] |
2024 | 56,439,000 | [2] |
2025 and thereafter | 427,981,000 | [2] |
Long Term Debt, Carrying Amount, Total | 649,531,000 | [2] |
Available Borrowing, as Limited by the Borrowing Base | 4,906,000 | [2] |
Current and Available Borrowing | 654,437,000 | [2] |
TMCL VI Term Loan | ||
Debt Instrument [Line Items] | ||
2021 | 25,206,000 | |
2022 | 25,206,000 | |
2023 | 25,206,000 | |
2024 | 25,206,000 | |
2025 and thereafter | 124,300,000 | |
Long Term Debt, Carrying Amount, Total | 225,123,000 | |
TMCL VII 2018-1 Bonds | ||
Debt Instrument [Line Items] | ||
2021 | 28,000,000 | [3] |
2022 | 28,000,000 | [3] |
2023 | 28,000,000 | [3] |
2024 | 28,000,000 | [3] |
2025 and thereafter | 191,333,000 | [3] |
Long Term Debt, Carrying Amount, Total | 303,333,000 | [3] |
TMCL VII 2020-1 Bonds | ||
Debt Instrument [Line Items] | ||
2021 | 52,906,000 | [3] |
2022 | 56,170,000 | [3] |
2023 | 56,925,000 | [3] |
2024 | 57,669,000 | [3] |
2025 and thereafter | 210,617,000 | [3] |
Long Term Debt, Carrying Amount, Total | 434,288,000 | [3] |
TMCL VII 2020-2 Bonds | ||
Debt Instrument [Line Items] | ||
2021 | 63,858,000 | [3] |
2022 | 60,569,000 | [3] |
2023 | 66,179,000 | [3] |
2024 | 68,745,000 | [3] |
2025 and thereafter | 334,301,000 | [3] |
Long Term Debt, Carrying Amount, Total | 593,652,000 | [3] |
TMCL VII 2020-3 Bonds | ||
Debt Instrument [Line Items] | ||
2021 | 20,111,000 | [3] |
2022 | 20,111,000 | [3] |
2023 | 20,111,000 | [3] |
2024 | 20,111,000 | [3] |
2025 and thereafter | 135,528,000 | [3] |
Long Term Debt, Carrying Amount, Total | 215,972,000 | [3] |
TAP Funding Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
2021 | 132,150,000 | |
Long Term Debt, Carrying Amount, Total | 132,150,000 | |
Available Borrowing, as Limited by the Borrowing Base | 3,686,000 | |
Current and Available Borrowing | $ 135,836,000 | |
[1] | Future scheduled payments for all debts exclude unamortized prepaid debt issuance costs in an aggregate amount of $26,283. | |
[2] | The estimated future repayments for TMCL II Secured Debt Facility is based on the assumption that the facility will not be extended on its associated conversion date. | |
[3] | Amounts on the TMCL VII 2019-1 Bonds, TMCL VII 2020-1 Bonds, TMCL VII 2020-2 Bonds, TMCL VII 2020-3 Bonds, exclude an unamortized discount of $81, $79, $157 and $82, respectively. |
Estimated Future Scheduled Re_2
Estimated Future Scheduled Repayments (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
Prepaid debt issuance costs | $ 26,283 |
TMCL VII 2019-1 Bonds | |
Debt Instrument [Line Items] | |
Debt instrument exclude an unamortized discount | 81 |
TMCL VII 2020-1 Bonds | |
Debt Instrument [Line Items] | |
Debt instrument exclude an unamortized discount | 79 |
TMCL VII 2020-2 Bonds | |
Debt Instrument [Line Items] | |
Debt instrument exclude an unamortized discount | 157 |
TMCL VII 2020-3 Bonds | |
Debt Instrument [Line Items] | |
Debt instrument exclude an unamortized discount | $ 82 |
Summary of Derivative Instrumen
Summary of Derivative Instruments (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Derivative [Line Items] | |
Notional amounts | $ 1,334,250 |
Non-designated | Interest rate swaps | Amortizing | |
Derivative [Line Items] | |
Notional amounts | 536,000 |
Non-designated | Interest rate cap | Amortizing | |
Derivative [Line Items] | |
Notional amounts | 30,000 |
Designated | Interest rate swaps | Amortizing | |
Derivative [Line Items] | |
Notional amounts | $ 768,250 |
Summary of Derivative Instrum_2
Summary of Derivative Instruments (Parenthetical) (Detail) - Interest Rate Swaps | 12 Months Ended |
Dec. 31, 2020 | |
Non-designated | |
Derivative [Line Items] | |
Derivative term | January 15, 2023 |
Non-designated | Minimum | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 1.73% |
Non-designated | Maximum | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 2.94% |
Designated | |
Derivative [Line Items] | |
Derivative term | April 30, 2027 |
Designated | Minimum | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 0.17% |
Designated | Maximum | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 1.58% |
Non-designated | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 3.00% |
Derivative term | December 31, 2021 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Addition to net fair value | $ 247 | $ 167 | |
Pre-tax gain (loss) on cash flow hedging instruments | (2,806) | 7 | |
Derivative instruments are designated | $ 0 | ||
Unrealized loss on derivative instruments, net | 6,044 | 15,442 | $ 5,790 |
Designated | Interest rate swaps | |||
Derivative [Line Items] | |||
Estimated amount to be reclassified from AOCI to interest expense | 4,399 | ||
Accumulated Gain (Loss), Cash Flow Hedge Instruments | |||
Derivative [Line Items] | |||
Pre-tax gain (loss) on cash flow hedging instruments | $ 12,307 | $ 110 |
Notional Amount and Fair Value
Notional Amount and Fair Value of Derivative Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Notional amount - Assets | $ 1,334,250 | |
Liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Notional amount - Liabilities | 1,229,250 | $ 738,500 |
Derivative Amount - Liabilities | 29,235 | 13,778 |
Assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Notional amount - Assets | 75,000 | 168,000 |
Derivative Amount - Assets | 47 | 135 |
Designated as Hedging Instrument | Interest rate swaps | Liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Notional amount - Liabilities | 693,250 | 110,000 |
Derivative Amount - Liabilities | 9,665 | 117 |
Designated as Hedging Instrument | Interest rate swaps | Assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Notional amount - Assets | 75,000 | |
Derivative Amount - Assets | 47 | |
Not Designated as Hedging Instrument | Interest rate swaps | Liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Notional amount - Liabilities | 536,000 | 628,500 |
Derivative Amount - Liabilities | $ 19,570 | 13,661 |
Not Designated as Hedging Instrument | Interest rate swaps | Assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Notional amount - Assets | 168,000 | |
Derivative Amount - Assets | $ 135 |
Summary of Pre-tax Impact of De
Summary of Pre-tax Impact of Derivative Instruments on Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments Gain Loss [Line Items] | |||
Pre-tax impact of derivative instruments | $ (12,295) | $ 1,946 | $ 5,238 |
Realized (loss) gain on derivative instruments, net | Non-designated | |||
Derivative Instruments Gain Loss [Line Items] | |||
Pre-tax impact of derivative instruments | (12,295) | 1,939 | 5,238 |
Unrealized loss on derivative instruments, net | Non-designated | |||
Derivative Instruments Gain Loss [Line Items] | |||
Pre-tax impact of derivative instruments | (6,044) | (15,442) | $ (5,790) |
Other comprehensive loss | Designated | |||
Derivative Instruments Gain Loss [Line Items] | |||
Pre-tax impact of derivative instruments | (12,307) | (110) | |
Interest expense, net | Designated | |||
Derivative Instruments Gain Loss [Line Items] | |||
Pre-tax impact of derivative instruments | $ (2,806) | $ 7 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020Segment | |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Segment Reporting Information [Line Items] | |||||
Lease rental income | $ 600,873 | $ 619,760 | $ 612,704 | ||
Trading container margin | 3,532 | 7,398 | 3,450 | ||
Gain on sale of owned fleet containers, net | 27,230 | 21,397 | 36,071 | ||
Depreciation expense | 261,665 | 260,372 | 249,500 | ||
Container lessee default recovery, net | 1,675 | ||||
Interest expense | 123,230 | 153,185 | 138,427 | ||
Write-off of unamortized deferred debt issuance costs and bond discounts | 8,750 | 881 | |||
Realized (loss) gain on derivative instruments, net | (12,295) | 1,946 | 5,238 | ||
Unrealized loss on derivative instruments, net | (6,044) | (15,442) | (5,790) | ||
Segment income (loss) before income tax and noncontrolling interests (1) | 73,299 | [1] | 58,504 | [1] | 56,275 |
Total assets | 5,741,376 | 5,202,617 | 4,768,769 | ||
Purchase of containers and fixed assets | 968,398 | 433,677 | 766,006 | ||
Payments on container leaseback financing receivable | 116,263 | ||||
Container lessee default expense, net | 7,867 | 17,948 | |||
Payments on container leaseback financing receivable | 116,263 | 281,445 | |||
Income before income taxes and non controlling interest | 73,299 | [1] | 58,504 | [1] | 56,275 |
Owned Fleet | |||||
Segment Reporting Information [Line Items] | |||||
Lease rental income | 538,425 | 517,859 | 501,362 | ||
Managed Fleet | |||||
Segment Reporting Information [Line Items] | |||||
Lease rental income | 62,448 | 101,901 | 111,342 | ||
Container Ownership | |||||
Segment Reporting Information [Line Items] | |||||
Lease rental income | 537,534 | 516,307 | 498,414 | ||
Gain on sale of owned fleet containers, net | 27,230 | 21,397 | 36,071 | ||
Depreciation expense | 268,401 | 266,832 | 255,442 | ||
Container lessee default recovery, net | 1,675 | ||||
Interest expense | 122,863 | 152,914 | 138,427 | ||
Write-off of unamortized deferred debt issuance costs and bond discounts | 8,750 | 0 | 881 | ||
Realized (loss) gain on derivative instruments, net | (12,295) | 1,946 | 5,238 | ||
Unrealized loss on derivative instruments, net | (6,044) | (15,442) | (5,790) | ||
Segment income (loss) before income tax and noncontrolling interests (1) | 41,831 | [1] | 14,296 | [1] | 26,166 |
Total assets | 5,641,866 | 5,101,301 | 4,648,938 | ||
Purchase of containers and fixed assets | 968,204 | 420,971 | 765,297 | ||
Payments on container leaseback financing receivable | 116,263 | ||||
Container lessee default expense, net | 7,867 | 17,948 | |||
Payments on container leaseback financing receivable | 281,445 | ||||
Income before income taxes and non controlling interest | 41,831 | [1] | 14,296 | [1] | 26,166 |
Container Ownership | Owned Fleet | |||||
Segment Reporting Information [Line Items] | |||||
Lease rental income | 537,534 | 516,307 | 498,414 | ||
Container Management | |||||
Segment Reporting Information [Line Items] | |||||
Lease rental income | 63,339 | 103,453 | 114,290 | ||
Depreciation expense | 939 | 916 | 794 | ||
Interest expense | 367 | 271 | |||
Segment income (loss) before income tax and noncontrolling interests (1) | 23,641 | [1] | 27,747 | [1] | 20,322 |
Total assets | 180,933 | 184,215 | 152,801 | ||
Purchase of containers and fixed assets | 194 | 12,706 | 709 | ||
Income before income taxes and non controlling interest | 23,641 | [1] | 27,747 | [1] | 20,322 |
Container Management | Owned Fleet | |||||
Segment Reporting Information [Line Items] | |||||
Lease rental income | 891 | 1,552 | 2,948 | ||
Container Management | Managed Fleet | |||||
Segment Reporting Information [Line Items] | |||||
Lease rental income | 62,448 | 101,901 | 111,342 | ||
Container Resale | |||||
Segment Reporting Information [Line Items] | |||||
Trading container margin | 3,532 | 7,398 | 3,450 | ||
Segment income (loss) before income tax and noncontrolling interests (1) | 16,433 | [1] | 21,036 | [1] | 16,128 |
Total assets | 12,050 | 19,573 | 45,110 | ||
Income before income taxes and non controlling interest | 16,433 | [1] | 21,036 | [1] | 16,128 |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Segment income (loss) before income tax and noncontrolling interests (1) | (3,254) | [1] | (4,089) | [1] | (4,083) |
Total assets | 13,691 | 7,206 | 10,653 | ||
Income before income taxes and non controlling interest | (3,254) | [1] | (4,089) | [1] | (4,083) |
Management Fees - Non-Leasing | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 5,271 | 7,590 | 8,529 | ||
Management Fees - Non-Leasing | External Customers | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 5,271 | 7,590 | 8,529 | ||
Management Fees - Non-Leasing | Container Ownership | External Customers | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 392 | 219 | 235 | ||
Management Fees - Non-Leasing | Container Management | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 54,899 | 48,215 | 48,646 | ||
Management Fees - Non-Leasing | Container Management | External Customers | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 129 | 1,646 | 2,752 | ||
Management Fees - Non-Leasing | Container Resale | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 12,575 | 12,323 | 12,132 | ||
Management Fees - Non-Leasing | Container Resale | External Customers | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 4,750 | 5,725 | 5,542 | ||
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation expense | (7,675) | (7,376) | (6,736) | ||
Segment income (loss) before income tax and noncontrolling interests (1) | (5,352) | [1] | (486) | [1] | (2,258) |
Total assets | (107,164) | (109,678) | (88,733) | ||
Income before income taxes and non controlling interest | (5,352) | [1] | (486) | [1] | (2,258) |
Eliminations | Management Fees - Non-Leasing | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | $ (67,474) | $ (60,538) | $ (60,778) | ||
[1] | (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized loss on derivative instruments, net of $ 6,044 , $ 15,442 and $5,790 for the years ended December 31, 2020 , 2019 and 201 8 , respectively , and write-off of unamortized deferred debt issuance costs and bond discounts of $ 8,750 , $ 0 and $ 881 for the years ended December 31, 2020, 2019 and 2018 , 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Unrealized loss on derivative instruments, net | $ (6,044) | $ (15,442) | $ (5,790) |
Write-off of unamortized deferred debt issuance costs and bond discounts | 8,750 | 881 | |
Container Ownership | |||
Segment Reporting Information [Line Items] | |||
Unrealized loss on derivative instruments, net | (6,044) | (15,442) | (5,790) |
Write-off of unamortized deferred debt issuance costs and bond discounts | $ 8,750 | $ 0 | $ 881 |
Segment Information Geographic
Segment Information Geographic Allocation of Lease Rental Income and Management Fees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Lease rental income | $ 600,873 | $ 619,760 | $ 612,704 |
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 | $ 302,709 | $ 329,567 | $ 319,286 |
Percent of Total, Lease rental income | 50.40% | 53.20% | 52.10% |
Percent of Total, Management fees | 0.20% | 0.40% | 0.10% |
Bermuda | |||
Segment Reporting Information [Line Items] | |||
Percent of Total, Management fees | 53.10% | 60.20% | 51.80% |
Europe | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | $ 266,431 | $ 255,495 | $ 255,753 |
Percent of Total, Lease rental income | 44.30% | 41.20% | 41.70% |
Percent of Total, Management fees | 45.50% | 30.80% | 24.50% |
North / South America | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | $ 29,391 | $ 31,786 | $ 34,053 |
Percent of Total, Lease rental income | 4.90% | 5.10% | 5.60% |
Percent of Total, Management fees | 0.20% | 4.50% | 23.10% |
All other international | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | $ 2,342 | $ 2,912 | $ 3,612 |
Percent of Total, Lease rental income | 0.40% | 0.50% | 0.60% |
Percent of Total, Management fees | 1.00% | 4.10% | 0.50% |
Total Management Fees | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 9,678 | $ 15,239 | $ 16,879 |
Total Management Fees | Non Leasing From External Customers | |||
Segment Reporting Information [Line Items] | |||
Revenue | 5,271 | 7,590 | 8,529 |
Total Management Fees | Non Leasing From External Customers | Asia | |||
Segment Reporting Information [Line Items] | |||
Revenue | 11 | 28 | 7 |
Total Management Fees | Non Leasing From External Customers | Bermuda | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,797 | 4,576 | 4,418 |
Total Management Fees | Non Leasing From External Customers | Europe | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,397 | 2,334 | 2,089 |
Total Management Fees | Non Leasing From External Customers | North / South America | |||
Segment Reporting Information [Line Items] | |||
Revenue | 9 | 342 | 1,970 |
Total Management Fees | Non Leasing From External Customers | All other international | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 57 | $ 310 | $ 45 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Gain on sale of owned fleet containers, net | $ 27,230 | $ 21,397 | $ 36,071 |
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 | $ 31,941 | $ 58,734 | $ 19,568 |
Asia | |||
Segment Reporting Information [Line Items] | |||
Gain on sale of owned fleet containers, net | $ 13,082 | $ 7,714 | $ 18,593 |
Percent of Total, Trading container sales proceeds | 46.60% | 67.30% | 67.00% |
Percent of Total, Gain on sale of containers, net | 48.10% | 36.00% | 51.50% |
Asia | Trading Containers | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 14,896 | $ 39,519 | $ 13,117 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Gain on sale of owned fleet containers, net | $ 5,538 | $ 5,577 | $ 9,622 |
Percent of Total, Trading container sales proceeds | 12.50% | 10.90% | 17.80% |
Percent of Total, Gain on sale of containers, net | 20.30% | 26.10% | 26.70% |
Europe | Trading Containers | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 3,991 | $ 6,411 | $ 3,487 |
North / South America | |||
Segment Reporting Information [Line Items] | |||
Gain on sale of owned fleet containers, net | $ 8,610 | $ 6,809 | $ 7,043 |
Percent of Total, Trading container sales proceeds | 40.90% | 21.80% | 14.80% |
Percent of Total, Gain on sale of containers, net | 31.60% | 31.80% | 19.50% |
North / South America | Trading Containers | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 13,045 | $ 12,788 | $ 2,893 |
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 | |
Percent of Total, Trading container sales proceeds | 0.00% | 0.00% | 0.40% |
Percent of Total, Gain on sale of containers, net | 6.10% | 2.30% | |
All other international | Trading Containers | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 9 | $ 16 | $ 71 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Restricted Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Restricted cash included in long-term assets | $ 74,147 | $ 97,353 | $ 87,630 |
Other Restricted Cash Accounts | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Restricted cash included in long-term assets | 57,093 | 84,531 | |
Trust Accounts | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Restricted cash included in long-term assets | $ 17,054 | $ 12,822 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) | Dec. 31, 2020USD ($) |
Commitments And Contingencies Disclosure [Line Items] | |
Containers orders placed | $ 795,891,000 |
Future minimum lease payment obligations | 14,395,000 |
Fleet Management Agreements | |
Commitments And Contingencies Disclosure [Line Items] | |
Future minimum lease payment obligations | 0 |
Sales-type Leaseback Financing Arrangement | |
Commitments And Contingencies Disclosure [Line Items] | |
Containers orders placed | $ 6,425,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | $ 1,674 | ||
Total compensation cost related to non-vested shares and restricted stock to be recognized over weighted average period | 2 years | ||
Closing common share price | $ 19.18 | ||
Aggregate intrinsic value of all options exercisable and outstanding | $ 4,107 | ||
Aggregate intrinsic value of all options exercised | $ 710 | $ 4 | $ 83 |
Weighted average contractual life of share options exercisable | 4 years 8 months 12 days | ||
Weighted average contractual life of share options outstanding | 4 years 10 months 24 days | ||
Stock options granted | 0 | 250,000 | 241,500 |
Weighted average grant date fair value of share options granted | $ 4.47 | $ 5.40 | |
PSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share units granted | 0 | 0 | |
Time-based RSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation cost related to non-vested share option and restricted stock unit not yet recognized | $ 8,833 | ||
Total compensation cost related to non-vested shares and restricted stock to be recognized over weighted average period | 2 years | ||
Market-based RSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation cost related to non-vested share option and restricted stock unit not yet recognized | $ 8,833 | ||
Total compensation cost related to non-vested shares and restricted stock to be recognized over weighted average period | 2 years | ||
Employees | RSU | Prior to 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vest increments per year | 25.00% | ||
Vesting period | 4 years | ||
Employees | RSU | During 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vest increments per year | 33.33% | ||
Vesting period | 3 years | ||
Directors | RSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Certain Executive | PSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
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 | 2,238,360 | ||
2019 Plan | PSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Share units granted | 183,560 | 0 | 0 |
Summary of Activity of Stock Op
Summary of Activity of Stock Option in Two Thousand Nineteen Plan (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share options (common share equivalents) | |||
Beginning Balance | 1,807,665 | 1,703,908 | 1,524,677 |
Options granted during the period | 0 | 250,000 | 241,500 |
Options exercised during the period | (113,960) | (13,014) | (15,259) |
Options expired during the period | (130,711) | (113,917) | (9,552) |
Options forfeited during the period | (33,968) | (19,312) | (37,458) |
Ending Balance | 1,529,026 | 1,807,665 | 1,703,908 |
Options exercisable at period end | 1,189,058 | ||
Options vested and expected to vest at period end | 1,510,274 | ||
Weighted average exercise price | |||
Beginning Balance | $ 19.76 | $ 21.44 | $ 22.88 |
Options granted during the period | 9.14 | 11.15 | |
Options exercised during the period | 11.36 | 9.70 | 8.49 |
Options expired during the period | 26.14 | 23.73 | 25.77 |
Options forfeited during the period | 12.40 | 14.08 | 17.61 |
Ending Balance | 19.90 | $ 19.76 | $ 21.44 |
Options exercisable at period end | 22.21 | ||
Options vested and expected to vest at period end | $ 20.01 |
Summary of Information About Sh
Summary of Information About Share Options Exercisable and Outstanding (Detail) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share options exercisable, number of shares | shares | 1,189,058 |
Share options exercisable, weighted average exercise price | $ 22.21 |
Share options outstanding, number of shares | shares | 1,529,026 |
Share options outstanding, weighted average exercise price | $ 19.90 |
$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 exercisable, number of shares | shares | 50,067 |
Share options exercisable, weighted average exercise price | $ 9.13 |
Share options outstanding, number of shares | shares | 226,874 |
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 | 2,500 |
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 | 210,359 |
Share options exercisable, weighted average exercise price | $ 9.70 |
Share options outstanding, number of shares | shares | 210,359 |
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 | 2,813 |
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 | 92,946 |
Share options exercisable, weighted average exercise price | $ 11.15 |
Share options outstanding, number of shares | shares | 202,560 |
Share options outstanding, weighted average exercise price | $ 11.15 |
$12.23 - $14.17 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share options exercisable, number of shares | shares | 158,254 |
Share options exercisable, weighted average exercise price | $ 14.05 |
Share options outstanding, number of shares | shares | 158,254 |
Share options outstanding, weighted average exercise price | $ 14.05 |
$12.23 - $14.17 | Minimum | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | 12.23 |
$12.23 - $14.17 | Maximum | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share 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 | 150,391 |
Share options exercisable, weighted average exercise price | $ 22.95 |
Share options outstanding, number of shares | shares | 200,501 |
Share options outstanding, weighted average exercise price | $ 22.95 |
$28.05 - $28.54 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share options exercisable, number of shares | shares | 215,514 |
Share options exercisable, weighted average exercise price | $ 28.27 |
Share options outstanding, number of shares | shares | 215,514 |
Share options outstanding, weighted average exercise price | $ 28.27 |
$28.05 - $28.54 | 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 - $28.54 | Maximum | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | 28.54 |
$34.14 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | $ 34.14 |
Share options exercisable, number of shares | shares | 162,639 |
Share options exercisable, weighted average exercise price | $ 34.14 |
Share options outstanding, number of shares | shares | 162,639 |
Share options outstanding, weighted average exercise price | $ 34.14 |
$38.36 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of per share exercise price | $ 38.36 |
Share options exercisable, number of shares | shares | 143,575 |
Share options exercisable, weighted average exercise price | $ 38.36 |
Share options outstanding, number of shares | shares | 143,575 |
Share options outstanding, weighted average exercise price | $ 38.36 |
Fair Value of Stock Option_PSU
Fair Value of Stock Option/PSU Awards Granted Assumptions Used (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement Assumptions Used To Estimate Fair Values Of Share Options Granted [Line Items] | |||
Risk-free interest rates | 1.70% | 2.90% | |
Expected terms (in years) | 5 years 6 months | 5 years 6 months | |
Expected common share price volatilities | 52.90% | 49.80% | |
Expected dividends | 0.00% | 0.00% | |
Expected forfeitures | 3.40% | 4.30% | |
PSU | |||
Share Based Compensation Arrangement Assumptions Used To Estimate Fair Values Of Share Options Granted [Line Items] | |||
Risk-free interest rates | 0.16% | ||
Expected common share price volatilities | 57.40% | ||
Expected dividends | 0.00% |
Summary of Activity of RSU and
Summary of Activity of RSU and PSU Awards Under the 2019 Plan (Detail) - 2019 Plan - RSU and PSU - $ / shares | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
RSU and PSU | ||||
Beginning Balance | 657,620 | 640,750 | 693,048 | |
Share units granted during the period | 384,428 | [1] | 309,192 | 274,845 |
Share units vested during the period | (300,404) | (281,377) | (289,685) | |
Share units forfeited during the period | (19,743) | (10,945) | (37,458) | |
Ending Balance | 721,901 | 657,620 | 640,750 | |
Share units outstanding and expected to vest at period end | 677,055 | |||
Weighted average grant date fair value | ||||
Beginning Balance | $ 11.95 | $ 14.20 | $ 16.03 | |
Share units granted during the period | 16.96 | [1] | 9.20 | 11.92 |
Share units vested during the period | 12.08 | 13.97 | 16.15 | |
Share units forfeited during the period | 12.62 | 14.32 | 17.27 | |
Ending Balance | 14.55 | $ 11.95 | $ 14.20 | |
Share units outstanding and expected to vest at period end | $ 14.48 | |||
[1] | Share units granted during the year ended December 31, 2020 includes 183,560 shares of PSU awards with a grant date fair value of $22.06 per share. On the settlement date for each measurement period of market-based awards, grantees may receive shares equal to 0% to 200% of the awards granted depending upon the achievement of certain market criteria based on the Company’s TSR relative to the peer group during the three-year There were no PSU awards granted during the years ended December 31, 2019 and 2018. |
Summary of Activity of RSU an_2
Summary of Activity of RSU and PSU Awards Under the 2019 Plan (Parenthetical) (Detail) - PSU - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share units granted | 0 | 0 | |
2019 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share units granted | 183,560 | 0 | 0 |
Grant date fair value | $ 22.06 | ||
Vesting period | 3 years | ||
2019 Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares on settlement date grantee may receive if certain criteria is met | 0.00% | ||
2019 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares on settlement date grantee may receive if certain criteria is met | 200.00% |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Mar. 31, 2020 | Aug. 31, 2019 | |
Equity Class Of Treasury Stock [Line Items] | |||||
Increase in common stock repurchase program, authorized amount | $ 50,000,000 | $ 25,000,000 | |||
Purchase of treasury shares (in shares) | 6,736,493 | 878,637 | |||
Common stock repurchased, average price per share | $ 10.17 | $ 9.75 | |||
Purchase of treasury shares | $ 68,493,000 | $ 8,597,000 | |||
Common stock repurchased program, amount remained available for repurchases | $ 23,202,000 | ||||
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. 19, 2021 | Feb. 10, 2021 | Jan. 19, 2021 | Dec. 31, 2020 | Jan. 20, 2021 | Feb. 29, 2020 | Dec. 20, 2012 |
TAP Funding Revolving Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Final Maturity | Dec. 31, 2021 | ||||||
Aggregate maximum commitment amount | $ 155,000,000 | $ 190,000,000 | |||||
Tap Funding Limited | |||||||
Subsequent Event [Line Items] | |||||||
Ownership percentage in TW Container Leasing, Ltd. | 49.90% | ||||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Final Maturity | Feb. 29, 2028 | ||||||
Aggregate maximum commitment amount | $ 70,270,000 | ||||||
Debt instrument, term | 7 years | ||||||
Fixed interest rate | 2.65% | ||||||
Subsequent Event | TAP Funding Revolving Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Final Maturity | Feb. 10, 2021 | ||||||
Subsequent Event | TMCL VII 2021-1 Bonds | |||||||
Subsequent Event [Line Items] | |||||||
Bonds issued | $ 550,000,000 | ||||||
Expected payment term | 7 years 6 months | ||||||
Subsequent Event | TMCL VII 2021-1 Bonds | Class A Secured Debt Facility | |||||||
Subsequent Event [Line Items] | |||||||
Bonds issued | $ 523,500,000 | ||||||
Subsequent Event | TMCL VII 2021-1 Bonds | Class B Secured Debt Facility | |||||||
Subsequent Event [Line Items] | |||||||
Bonds issued | $ 26,500,000 | ||||||
Subsequent Event | Tap Funding Limited | |||||||
Subsequent Event [Line Items] | |||||||
Ownership percentage in TW Container Leasing, Ltd. | 49.90% | 100.00% | |||||
Total purchase price consideration | $ 21,500,000 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Income (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating expenses: | |||
General and administrative expense | $ 41,880 | $ 38,142 | $ 44,317 |
Loss from operations | 221,599 | 222,684 | 194,426 |
Other (expense) income: | |||
Interest income | 531 | 2,505 | 1,709 |
Other, net | 1,488 | (4) | |
Net other expense | (148,300) | (164,180) | (138,151) |
Income tax benefit (expense) | 374 | (1,948) | (2,025) |
Net income attributable to Textainer Group Holdings Limited common shareholders | $ 72,822 | $ 56,724 | $ 50,378 |
Net income attributable to Textainer Group Holdings Limited common shareholders per share: | |||
Basic | $ 1.37 | $ 0.99 | $ 0.88 |
Diluted | $ 1.36 | $ 0.99 | $ 0.88 |
Weighted average shares outstanding (in thousands): | |||
Basic | 53,271 | 57,349 | 57,200 |
Diluted | 53,481 | 57,459 | 57,487 |
Other comprehensive income (loss), before tax: | |||
Change in derivative instruments designated as cash flow hedges | $ (12,307) | $ (110) | |
Reclassification of realized loss (gain) on derivative instruments designated as cash flow hedges | 2,806 | (7) | |
Comprehensive income, before tax | 64,349 | 56,481 | $ 54,123 |
Income tax benefit related to items of other comprehensive income (loss) | 91 | ||
Comprehensive income attributable to Textainer Group Holdings Limited common shareholders | 63,589 | 56,649 | 50,251 |
Parent Company | |||
Operating expenses: | |||
General and administrative expense | 3,988 | 4,089 | 4,083 |
Total operating expenses | 3,988 | 4,089 | 4,083 |
Loss from operations | (3,988) | (4,089) | (4,083) |
Other (expense) income: | |||
Equity in net income of subsidiaries | 76,076 | 60,813 | 54,461 |
Interest income | 80 | ||
Other, net | 654 | ||
Net other expense | 76,810 | 60,813 | 54,461 |
Income before income tax | 72,822 | 56,724 | 50,378 |
Income tax benefit (expense) | 0 | 0 | 0 |
Net income attributable to Textainer Group Holdings Limited common shareholders | $ 72,822 | $ 56,724 | $ 50,378 |
Net income attributable to Textainer Group Holdings Limited common shareholders per share: | |||
Basic | $ 1.37 | $ 0.99 | $ 0.88 |
Diluted | $ 1.36 | $ 0.99 | $ 0.88 |
Weighted average shares outstanding (in thousands): | |||
Basic | 53,271 | 57,349 | 57,200 |
Diluted | 53,481 | 57,459 | 57,487 |
Other comprehensive income (loss), before tax: | |||
Change in derivative instruments designated as cash flow hedges | $ (12,307) | $ (110) | |
Reclassification of realized loss (gain) on derivative instruments designated as cash flow hedges | 2,806 | (7) | |
Foreign currency translation adjustments | 177 | 42 | $ (127) |
Comprehensive income, before tax | 63,498 | 56,649 | 50,251 |
Income tax benefit related to items of other comprehensive income (loss) | 91 | ||
Comprehensive income attributable to Textainer Group Holdings Limited common shareholders | $ 63,589 | $ 56,649 | $ 50,251 |
Condensed Balance Sheets (Detai
Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 131,018 | $ 180,552 | $ 137,298 | |
Prepaid expenses and other current assets | 13,713 | 14,816 | ||
Total current assets | 385,357 | 421,333 | ||
Total assets | 5,741,376 | 5,202,617 | 4,768,769 | |
Current liabilities: | ||||
Accounts payable and accrued expenses | 24,385 | 23,404 | ||
Total current liabilities | 685,382 | 299,845 | ||
Textainer Group Holdings Limited shareholders' equity: | ||||
Common shares, $0.01 par value. Authorized 140,000,000 shares; 58,740,919 shares issued and 50,495,789 shares outstanding at 2020; 58,326,555 shares issued and 56,817,918 shares outstanding at 2019 | 587 | 583 | ||
Treasury shares, at cost, 8,245,130 and 1,508,637 shares, respectively | (86,239) | (17,746) | ||
Additional paid-in capital | 416,609 | 410,595 | ||
Accumulated other comprehensive loss | (9,744) | (511) | ||
Retained earnings | 938,395 | 866,458 | ||
Total Textainer Group Holdings Limited shareholders’ equity | 1,259,608 | 1,259,379 | ||
Total liabilities and equity | 5,741,376 | 5,202,617 | ||
Parent Company | ||||
Current assets: | ||||
Cash and cash equivalents | 12,372 | 5,956 | $ 9,444 | $ 5,530 |
Prepaid expenses and other current assets | 336 | 310 | ||
Due from affiliates, net | 2,679 | 638 | ||
Total current assets | 15,387 | 6,904 | ||
Investments in subsidiaries | 1,245,427 | 1,253,763 | ||
Total assets | 1,260,814 | 1,260,667 | ||
Current liabilities: | ||||
Accounts payable and accrued expenses | 394 | 476 | ||
Total current liabilities | 394 | 476 | ||
Textainer Group Holdings Limited shareholders' equity: | ||||
Common shares, $0.01 par value. Authorized 140,000,000 shares; 58,740,919 shares issued and 50,495,789 shares outstanding at 2020; 58,326,555 shares issued and 56,817,918 shares outstanding at 2019 | 587 | 583 | ||
Treasury shares, at cost, 8,245,130 and 1,508,637 shares, respectively | (86,239) | (17,746) | ||
Additional paid-in capital | 417,421 | 411,407 | ||
Accumulated other comprehensive loss | (9,744) | (511) | ||
Retained earnings | 938,395 | 866,458 | ||
Total Textainer Group Holdings Limited shareholders’ equity | 1,260,420 | 1,260,191 | ||
Total liabilities and equity | $ 1,260,814 | $ 1,260,667 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 73,673 | $ 56,556 | $ 54,250 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Share-based compensation expense | 4,723 | 4,388 | 7,355 |
Decrease (increase) in: | |||
Prepaid expenses and other current assets | 1,103 | 8,693 | 12,072 |
Increase (decrease) in: | |||
Accounts payable and accrued expenses | 981 | (4,363) | 808 |
Total adjustments | 322,582 | 371,989 | 261,869 |
Net cash provided by operating activities | 396,255 | 428,545 | 316,119 |
Cash flows from investing activities: | |||
Net cash used in investing activities | (689,902) | (761,792) | (736,787) |
Cash flows from financing activities: | |||
Purchase of treasury shares | (68,493) | (8,597) | |
Issuance of common shares upon exercise of share options | 1,295 | 126 | 130 |
Net cash provided by financing activities | 220,730 | 386,182 | 408,154 |
Effect of exchange rate changes | 177 | 42 | (127) |
Cash and cash equivalents, beginning of the year | 180,552 | 137,298 | |
Cash and cash equivalents, end of the year | 131,018 | 180,552 | 137,298 |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 72,822 | 56,724 | 50,378 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in net income of subsidiaries | (76,076) | (60,813) | (54,461) |
Dividends received from subsidiaries | 76,167 | 46,823 | |
Share-based compensation expense | 4,723 | 4,388 | 7,355 |
Decrease (increase) in: | |||
Prepaid expenses and other current assets | (26) | (128) | 34 |
Increase (decrease) in: | |||
Accounts payable and accrued expenses | (82) | (237) | 145 |
Total adjustments | 4,706 | (9,967) | (46,927) |
Net cash provided by operating activities | 77,528 | 46,757 | 3,451 |
Cash flows from investing activities: | |||
(Decrease) increase in investments in subsidiaries, net | (2,050) | (41,865) | 127 |
Net cash used in investing activities | (2,050) | (41,865) | 127 |
Cash flows from financing activities: | |||
Purchase of treasury shares | (68,493) | (8,597) | |
Issuance of common shares upon exercise of share options | 1,295 | 126 | 130 |
Due (from) to affiliates, net | (2,041) | 49 | 333 |
Net cash provided by financing activities | (69,239) | (8,422) | 463 |
Effect of exchange rate changes | 177 | 42 | (127) |
Net increase (decrease) in cash and cash equivalents | 6,416 | (3,488) | 3,914 |
Cash and cash equivalents, beginning of the year | 5,956 | 9,444 | 5,530 |
Cash and cash equivalents, end of the year | $ 12,372 | $ 5,956 | $ 9,444 |
Valuation Accounts (Detail)
Valuation Accounts (Detail) - Accounts receivable, allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 6,299 | $ 5,729 | $ 7,632 |
Additions Charged to Expense (Recovery) | (3,149) | 2,096 | 3,574 |
Deductions Credited and Write-Offs | (487) | (1,526) | (5,477) |
Balance at End of Year | $ 2,663 | $ 6,299 | $ 5,729 |