Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
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 | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 48,831,855 |
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 |
Auditor Name | KPMG LLP |
Auditor Location | San Francisco, California |
Auditor Firm ID | 185 |
Series A Preferred Shares | |
Document Information [Line Items] | |
Trading Symbol | TGH PRA |
Title of 12(b) Security | 7.00% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preference Shares, $0.01 par value |
Security Exchange Name | NYSE |
Series B Preferred Shares | |
Document Information [Line Items] | |
Trading Symbol | TGH PRB |
Title of 12(b) Security | 6.25% Series B Fixed Rate Cumulative Redeemable Perpetual Preference Shares, $0.01 par value |
Security Exchange Name | NYSE |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | Textainer Group Holdings Limited |
Entity Address, Address Line Two | Century House |
Entity Address, City or Town | Hamilton |
Entity Address, Country | BM |
Entity Address, Postal Zip Code | HM 08 |
Contact Personnel Name | Adam Hopkin |
Entity Address, Address Line Three | 16 Par-La-Ville Road |
City Area Code | 441 |
Local Phone Number | 296-2500 |
Contact Personnel Email Address | ahh@textainer.com |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Revenues: | |||||
Lease rental income | $ 750,730,000 | $ 600,873,000 | $ 619,760,000 | ||
Trading container margin | 10,760,000 | 3,532,000 | 7,398,000 | ||
Gain on sale of owned fleet containers, net | 67,229,000 | 27,230,000 | 21,397,000 | ||
Operating expenses: | |||||
Depreciation expense | 281,575,000 | 261,665,000 | 260,372,000 | ||
Amortization expense | 2,540,000 | 2,572,000 | 2,093,000 | ||
General and administrative expense | 46,462,000 | 41,880,000 | 38,142,000 | ||
Bad debt (recovery) expense, net | (1,285,000) | (1,668,000) | 2,002,000 | ||
Container lessee default (recovery) expense, net | (1,088,000) | (1,675,000) | 7,867,000 | ||
Gain on insurance recovery and legal settlement | (14,881,000) | ||||
Gain on settlement of pre-existing management agreement | (1,823,000) | ||||
Total operating expenses | 401,948,000 | 415,307,000 | 433,461,000 | ||
Income from operations | 430,131,000 | 221,599,000 | 222,684,000 | ||
Other (expense) income: | |||||
Interest expense | (127,269,000) | (123,230,000) | (153,185,000) | ||
Debt termination expense | [1] | (15,209,000) | (8,750,000) | ||
Interest income | 123,000 | 531,000 | 2,505,000 | ||
Realized (loss) gain on financial instruments, net | (5,634,000) | (12,295,000) | 1,946,000 | ||
Unrealized gain (loss) on financial instruments, net | 4,409,000 | (6,044,000) | (15,442,000) | ||
Other, net | (490,000) | 1,488,000 | (4,000) | ||
Net other expense | (144,070,000) | (148,300,000) | (164,180,000) | ||
Income before income taxes | 286,061,000 | 73,299,000 | [2] | 58,504,000 | |
Income tax (expense) benefit | (1,773,000) | 374,000 | (1,948,000) | ||
Net income | 284,288,000 | 73,673,000 | 56,556,000 | ||
Less: Dividends on preferred shares | 10,829,000 | ||||
Less: Net income (loss) attributable to the noncontrolling interest | 0 | 851,000 | (168,000) | ||
Net income attributable to common shareholders | $ 273,459,000 | $ 72,822,000 | $ 56,724,000 | ||
Net income attributable to common shareholders per share: | |||||
Basic | $ 5.51 | $ 1.37 | $ 0.99 | ||
Diluted | $ 5.41 | $ 1.36 | $ 0.99 | ||
Weighted average shares outstanding (in thousands): | |||||
Basic | 49,624 | 53,271 | 57,349 | ||
Diluted | 50,576 | 53,481 | 57,459 | ||
Owned Fleet | |||||
Revenues: | |||||
Lease rental income | $ 694,693,000 | $ 538,425,000 | $ 517,859,000 | ||
Operating expenses: | |||||
Direct container expense - owned fleet | 23,384,000 | 55,222,000 | 45,831,000 | ||
Managed Fleet | |||||
Revenues: | |||||
Lease rental income | 56,037,000 | 62,448,000 | 101,901,000 | ||
Operating expenses: | |||||
Distribution expense to managed fleet container investors | 50,360,000 | 57,311,000 | 93,858,000 | ||
Management Fees - Non-Leasing | |||||
Revenues: | |||||
Revenue | 3,360,000 | 5,271,000 | 7,590,000 | ||
Trading Containers | |||||
Revenues: | |||||
Revenue | 32,045,000 | 31,941,000 | 58,734,000 | ||
Cost of trading containers sold | $ (21,285,000) | $ (28,409,000) | $ (51,336,000) | ||
[1] | Amounts for the years ended December 31, 2020 and 2019 have been reclassified to conform with the 2021 presentation (see Note 1 (w) “Reclassifications and Changes in Presentation”). | ||||
[2] | (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized gain (loss) on financial instruments, net of $4,409, $(6,044) and $(15,442) for the years ended December 31, 2021, 2020 and 2019, respectively, and debt termination expense of $15,209, $8,750 and $0 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net income | $ 284,288 | $ 73,673 | $ 56,556 |
Other comprehensive income (loss), before tax: | |||
Change in derivative instruments designated as cash flow hedges | 10,986 | (12,307) | (110) |
Reclassification of realized loss (gain) on derivative instruments designated as cash flow hedges | 8,771 | 2,806 | (7) |
Foreign currency translation adjustments | (79) | 177 | 42 |
Comprehensive income, before tax | 303,966 | 64,349 | 56,481 |
Income tax (expense) benefit related to items of other comprehensive income | (184) | 91 | |
Comprehensive income, after tax | 303,782 | 64,440 | 56,481 |
Less: Dividends on preferred shares | 10,829 | ||
Less: Comprehensive income (loss) attributable to the noncontrolling interest | 851 | (168) | |
Comprehensive income attributable to common shareholders | $ 292,953 | $ 63,589 | $ 56,649 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 206,210,000 | $ 131,018,000 | |
Accounts receivable, net of allowance of $1,290 and $2,663, respectively | 125,746,000 | 108,578,000 | |
Net investment in finance leases, net of allowance of $100 and $169, respectively | 113,048,000 | 78,459,000 | |
Container leaseback financing receivable, net of allowance of $38 and $98, respectively | 30,317,000 | 27,076,000 | |
Trading containers | 12,740,000 | 9,375,000 | |
Containers held for sale | 7,007,000 | 15,629,000 | |
Prepaid expenses and other current assets | 14,184,000 | 13,713,000 | |
Due from affiliates, net | 2,376,000 | 1,509,000 | |
Total current assets | 511,628,000 | 385,357,000 | |
Restricted cash | 76,362,000 | 74,147,000 | |
Marketable securities | 2,866,000 | ||
Containers, net of accumulated depreciation of $1,851,664 and $1,619,591, respectively | 4,731,878,000 | 4,125,052,000 | |
Net investment in finance leases, net of allowance of $643 and $1,164, respectively | 1,693,042,000 | 801,501,000 | |
Container leaseback financing receivable, net of allowance of $75 and $326, respectively | 323,830,000 | 336,792,000 | |
Derivative instruments | 12,278,000 | 47,000 | |
Deferred taxes | 1,073,000 | 1,153,000 | |
Other assets | [1] | 14,487,000 | 17,327,000 |
Total assets | 7,367,444,000 | 5,741,376,000 | |
Current liabilities: | |||
Accounts payable and accrued expenses | 22,111,000 | 24,385,000 | |
Container contracts payable | 140,968,000 | 231,647,000 | |
Other liabilities | 4,895,000 | 2,288,000 | |
Due to container investors, net | 17,985,000 | 18,697,000 | |
Debt, net of unamortized costs of $8,624 and $8,043, respectively | 380,207,000 | 408,365,000 | |
Total current liabilities | 566,166,000 | 685,382,000 | |
Debt, net of unamortized costs of $32,019 and $18,639, respectively | 4,960,313,000 | 3,706,979,000 | |
Derivative instruments | 2,139,000 | 29,235,000 | |
Income tax payable | 10,747,000 | 10,047,000 | |
Deferred taxes | 7,589,000 | 6,491,000 | |
Other liabilities | 39,236,000 | 16,524,000 | |
Total liabilities | 5,586,190,000 | 4,454,658,000 | |
Textainer Group Holdings Limited shareholders' equity: | |||
Common shares, $0.01 par value. Authorized 140,000,000 shares; 59,503,710 shares issued and 48,831,855 shares outstanding at 2021; 58,740,919 shares issued and 50,495,789 shares outstanding at 2020 | 595,000 | 587,000 | |
Treasury shares, at cost, 10,671,855 and 8,245,130 shares, respectively | (158,459,000) | (86,239,000) | |
Additional paid-in capital | 428,945,000 | 416,609,000 | |
Accumulated other comprehensive income (loss) | 9,750,000 | (9,744,000) | |
Retained earnings | 1,200,423,000 | 938,395,000 | |
Total Textainer Group Holdings Limited shareholders’ equity | 1,781,254,000 | 1,259,608,000 | |
Noncontrolling interest | 0 | 27,110,000 | |
Total equity | 1,781,254,000 | 1,286,718,000 | |
Total liabilities and equity | 7,367,444,000 | $ 5,741,376,000 | |
Series A Preferred Shares | |||
Textainer Group Holdings Limited shareholders' equity: | |||
Preferred shares | 150,000,000 | ||
Series B Preferred Shares | |||
Textainer Group Holdings Limited shareholders' equity: | |||
Preferred shares | $ 150,000,000 | ||
[1] | Amount for the year ended December 31, 2020 has been reclassified to conform with the 2021 presentation (see Note 1 (w) “Reclassifications and Changes in Presentation”). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts receivable, allowance | $ 1,290 | $ 2,663 |
Net investment in finance leases, allowance current | 100 | 169 |
Container leaseback financing receivable, allowance current | 38 | 98 |
Containers, accumulated depreciation | 1,851,664 | 1,619,591 |
Net investment in finance leases, allowance non current | 643 | 1,164 |
Container leaseback financing receivable, allowance non current | 75 | 326 |
Debt, net of unamortized costs current | 8,624 | 8,043 |
Debt, net of unamortized costs non current | $ 32,019 | $ 18,639 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, Authorized | 140,000,000 | 140,000,000 |
Common shares, issued | 59,503,710 | 58,740,919 |
Common shares, outstanding | 48,831,855 | 50,495,789 |
Treasury shares, at cost, shares | 10,671,855 | 8,245,130 |
Series A Preferred Shares | ||
Fixed-to-floating rate of cumulative redeemable perpetual preference shares | 7.00% | |
Preferred stock shares, par value | $ 0.01 | |
Preferred stock shares, liquidation preference per share | $ 25,000 | |
Preferred stock shares, Authorized | 10,000,000 | |
Preferred stock shares, issued | 6,000 | |
Preferred stock shares, outstanding | 6,000 | |
Depositary shares issued | 6,000,000 | |
Depositary per share equivalent to liquidation preference per share | $ 25 | |
Series B Preferred Shares | ||
Fixed-to-floating rate of cumulative redeemable perpetual preference shares | 6.25% | |
Preferred stock shares, issued | 6,000 | |
Preferred stock shares, outstanding | 6,000 | |
Depositary shares issued | 6,000,000 | |
Depositary per share equivalent to liquidation preference per share | $ 25 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect Period of Adoption Adjustment | Preferred shares | Common shares | Treasury shares | Additional Paid-in capital | Accumulated other comprehensive (loss) income | 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, 2018 | $ 1,235,991 | $ 581 | $ (9,149) | $ 406,083 | $ (436) | $ 809,734 | $ 1,206,813 | $ 29,178 | |||||
Beginning 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) | ||||||||||||
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 | ||||||||||
Net income | 56,556 | 56,724 | 56,724 | (168) | |||||||||
Other comprehensive income (loss): | |||||||||||||
Change in derivative instruments designated as cash flow hedges | (110) | (110) | (110) | ||||||||||
Reclassification of realized gain on derivative instruments designated as cash flow hedges | (7) | (7) | (7) | ||||||||||
Foreign currency translation adjustments | 42 | 42 | 42 | ||||||||||
Total other comprehensive income (loss) | (75) | ||||||||||||
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 2016-13) 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 | ||||||||||
Net income | 73,673 | 72,822 | 72,822 | 851 | |||||||||
Other comprehensive income (loss): | |||||||||||||
Change in derivative instruments designated as cash flow hedges | (12,307) | (12,307) | (12,307) | ||||||||||
Reclassification of realized gain on derivative instruments designated as cash flow hedges | 2,806 | 2,806 | 2,806 | ||||||||||
Foreign currency translation adjustments | 177 | 177 | 177 | ||||||||||
Income tax benefit related to items of other comprehensive loss | 91 | 91 | 91 | ||||||||||
Total other comprehensive income (loss) | (9,233) | ||||||||||||
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) | |||||||||||
Purchase of treasury shares | $ (72,220) | $ (72,220) | (72,220) | ||||||||||
Purchase of treasury shares (in shares) | (2,426,725) | (2,426,725) | |||||||||||
Issuance of preferred shares, net of offering expenses | $ 289,580 | $ 300,000 | (10,420) | 289,580 | |||||||||
Issuance of preferred shares, net of offering expenses (in shares) | 12,000 | ||||||||||||
Restricted share units vested | $ 3 | (3) | |||||||||||
Restricted share units vested (in shares) | 285,688 | ||||||||||||
Exercise of share options | $ 9,043 | $ 5 | 9,038 | 9,043 | |||||||||
Exercise of share options (in shares) | 477,103 | 477,103 | |||||||||||
Share-based compensation expense | $ 6,699 | 6,699 | 6,699 | ||||||||||
Purchase of noncontrolling interest | (20,088) | 7,022 | 7,022 | $ (27,110) | |||||||||
Preferred shares dividends declared | (9,975) | (9,975) | (9,975) | ||||||||||
Dividends declared to common shareholders ($0.25per common share) | (12,285) | (12,285) | (12,285) | ||||||||||
Net income | 284,288 | 284,288 | 284,288 | ||||||||||
Other comprehensive income (loss): | |||||||||||||
Change in derivative instruments designated as cash flow hedges | 10,986 | 10,986 | 10,986 | ||||||||||
Reclassification of realized gain on derivative instruments designated as cash flow hedges | 8,771 | 8,771 | 8,771 | ||||||||||
Foreign currency translation adjustments | (79) | (79) | (79) | ||||||||||
Income tax benefit related to items of other comprehensive loss | (184) | (184) | (184) | ||||||||||
Total other comprehensive income (loss) | 19,494 | ||||||||||||
Ending Balances at Dec. 31, 2021 | $ 1,781,254 | $ 300,000 | $ 595 | $ (158,459) | $ 428,945 | $ 9,750 | $ 1,200,423 | $ 1,781,254 | |||||
Ending Balances (in shares) at Dec. 31, 2021 | 12,000 | 59,503,710 | (10,671,855) |
Consolidated Statements Of Sh_2
Consolidated Statements Of Shareholders' Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2021$ / shares | |
Statement Of Stockholders Equity [Abstract] | |
Common stock, dividends, per share, declared | $ 0.25 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Cash flows from operating activities: | ||||
Net income | $ 284,288 | $ 73,673 | $ 56,556 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation expense | 281,575 | 261,665 | 260,372 | |
Bad debt (recovery) expense, net | (1,285) | (1,668) | 2,002 | |
Container (recovery) write-off from lessee default, net | (4,868) | (260) | 7,179 | |
Unrealized (gain) loss on financial instruments, net | (4,409) | 6,044 | 15,442 | |
Amortization of unamortized debt issuance costs and accretion of bond discounts | [1] | 9,845 | 8,112 | 7,953 |
Debt termination expense | [1] | 15,209 | 8,750 | |
Amortization of intangible assets | 2,540 | 2,572 | 2,093 | |
Gain on sale of owned fleet containers, net | (67,229) | (27,230) | (21,397) | |
Gain on settlement of pre-existing management agreement | (1,823) | |||
Share-based compensation expense | 6,699 | 4,723 | 4,388 | |
Decrease (increase) in: | ||||
Accounts receivable, net | (6,686) | 11,539 | 25,530 | |
Trading containers, net | (1,911) | 7,211 | 19,549 | |
Receipt of payments on finance leases, net of income earned | 104,770 | 44,569 | 49,796 | |
Interest portion of container leaseback financing receivable | 122 | (933) | (2,286) | |
Prepaid expenses and other current assets | (2,577) | 1,103 | 8,693 | |
Due from affiliates, net | (867) | 371 | (39) | |
Receipt of marketable securities from a lessee | (5,789) | |||
Proceeds from sale of marketable securities | 2,112 | |||
Other assets | 1,139 | 502 | (10,000) | |
Increase (decrease) in: | ||||
Accounts payable and accrued expenses | (2,350) | 981 | (4,363) | |
Other liabilities | 14,823 | (1,354) | 13,519 | |
Due to container investors, net | (712) | (3,281) | (6,407) | |
Settlement of interest rate swaps | (14,350) | |||
Long-term income tax payable | 700 | 138 | 339 | |
Deferred taxes, net | 994 | (972) | 1,449 | |
Total adjustments | 327,495 | 322,582 | 371,989 | |
Net cash provided by operating activities | 611,783 | 396,255 | 428,545 | |
Cash flows from investing activities: | ||||
Purchase of containers and fixed assets | (2,083,819) | (746,145) | (466,993) | |
Payments on container leaseback financing receivable | (18,705) | (116,263) | (281,445) | |
Payment for Leased Assets Pool Company Limited, net of cash acquired | (171,841) | |||
Proceeds from sale of containers and fixed assets | 142,276 | 151,021 | 150,742 | |
Receipt of principal payments on container leaseback financing receivable | 30,119 | 21,485 | 7,745 | |
Net cash used in investing activities | (1,930,129) | (689,902) | (761,792) | |
Cash flows from financing activities: | ||||
Proceeds from debt | 4,863,756 | 2,114,260 | 1,439,223 | |
Payments on debt | (3,635,663) | (1,799,870) | (1,049,857) | |
Payment of debt issuance costs | (27,895) | (13,637) | (9,417) | |
Proceeds from container leaseback financing liability, net | 16,305 | 17,448 | ||
Principal repayments on container leaseback financing liability, net | (3,314) | (12,825) | ||
Issuance of preferred shares, net of underwriting discount | 290,550 | |||
Purchase of treasury shares | (72,220) | (68,493) | (8,597) | |
Issuance of common shares upon exercise of share options | 9,043 | 1,295 | 126 | |
Dividends paid on common shares | (12,285) | |||
Dividends paid on preferred shares | (9,975) | |||
Dividends paid to noncontrolling interest | (2,744) | |||
Purchase of noncontrolling interest | (21,500) | |||
Other | (970) | |||
Net cash provided by financing activities | 1,395,832 | 220,730 | 386,182 | |
Effect of exchange rate changes | (79) | 177 | 42 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 77,407 | (72,740) | 52,977 | |
Cash, cash equivalents and restricted cash, beginning of the year | 205,165 | 277,905 | 224,928 | |
Cash, cash equivalents and restricted cash, end of the year | 282,572 | 205,165 | 277,905 | |
Supplemental disclosures of cash flow information: | ||||
Cash paid for interest expense and realized (loss) gain on derivative instruments, net | 145,711 | 126,958 | 142,248 | |
Net income taxes paid | 1,567 | 34 | 42 | |
Supplemental disclosures of noncash operating activities: | ||||
Right-of-use asset for leased properties | 272 | 574 | 11,276 | |
Supplemental disclosures of noncash investing activities: | ||||
(Decrease) increase in accrued container purchases | (90,679) | 222,253 | (33,316) | |
Containers placed in finance leases | $ 1,043,323 | $ 635,004 | $ 173,856 | |
[1] | Amounts for the years ended December 31, 2020 and 2019 have been reclassified to conform with the 2021 presentation (see Note 1 (w) “Reclassifications and Changes in Presentation”). |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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 also manages and provides administrative support to the 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 and preferred 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 TAP Funding Ltd. (“TAP Funding”) (a Bermuda company) was a joint venture between the Company’s wholly-owned subsidiary, Textainer Limited (“TL”) (a Bermuda company) and TAP Ltd. (“TAP”) in which TL owned 50.1%, TAP owned 49.9% of the common shares of TAP Funding, and TAP Funding was a VME. The Company consolidated TAP Funding as the Company had a controlling financial interest in TAP Funding. In January 2021, the Company completed the acquisition of 49.9% of the common shares of TAP Funding from TAP for a total purchase price consideration of $21,500. After the acquisition of the noncontrolling interest (“NCI”), the Company owned 100% of TAP Funding and TAP Funding became a wholly-owned subsidiary of the Company. The Company accounted for this equity transaction as a reduction in the related NCI, and the difference between the carrying value of the NCI on January 1, 2021, and the cash consideration was recognized as an increase in additional paid-in capital (“APIC”) of $7,022. Prior to the Company’s dissolution of TAP Funding in May 2021, TAP Funding’s assets and liabilities were transferred to TL. Prior to the acquisition of the NCI, the equity owned by TAP in TAP Funding was shown as NCI on the Company’s consolidated balance sheet as of December 31, 2020 and the net income was shown as net income attributable to the NCI on the Company’s consolidated statements of operations for the years ended December 31, 2020 and 2019. After the capital restructuring, there is no NCI in TAP Funding on the Company’s consolidated balance sheet as of December 31, 2021 and there is no net income attributable to the NCI on the Company’s consolidated statements of operations for the year ended December 31, 2021. 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. Prior to the Company’s dissolution of LAPCO in February 2021, LAPCO’s assets and liabilities were transferred to TL. Managed Containers The Company enters into container management agreements with Container Investors. The fees earned by the Company for managing container portfolios on behalf of Container Investors are commensurate with the level of effort required to provide those management services and the Company does not have the obligation to absorb losses or the right to receive benefits that may be significant to the Container Investors. As such, the Company is not the primary beneficiary and does not consolidate the Container Investors. Managed containers which are owned by Container Investors are not assets of the Company and are not included in the consolidated financial statements, except for certain managed containers that the Company is deemed to own with associated container leaseback financial liability of the Company in accordance with Topic 842, Leases Owned Containers The majority of the container equipment included in the accompanying consolidated financial statements is owned by TL, Textainer Marine Containers II Limited (“TMCL II”) and Textainer Marine Containers VII Limited (“TMCL V II ”), all Bermuda companies and all of which were wholly-owned subsidiaries of the Company as of December 31, 20 2 1 and 20 20 . All owned containers are pledged as collateral for debt as of December 31, 20 2 1 and 20 20 . (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. (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. As of December 31, 2021 and 2020, intangible assets amounted to $178 and $2,719, respectively, net of accumulated amortization of $42,002 and $47,931, respectively, which were included in “other assets” in the consolidated balance sheets. The Company recorded a write-off of intangible assets amounting to $551 and $0 during the years ended December 31, 2021 and 2020, respectively, for the management rights relinquished relating to the Company’s purchase of containers previously managed for a container investor. As of December 31, 2021, the aggregate future amortization of intangible assets of $178 is expected to amortize through 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. The Company will cease recognition of lease revenue if and when a container lessee defaults in making timely payments and when determined that future lease payments are not likely to be collected from the lessee (s ee 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 Accounts receivable, net investment in finance leases and container leaseback financing receivable are stated at amortized cost net of allowance for credit losses. Subsequent changes in the estimated allowance for credit losses are recognized in “bad debt (recovery) expense, net” in the consolidated statements of operations (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 based upon historical trends and age of the balances. 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 i f 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 creditworthiness, 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 The Company’s 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 $ 195 , $ 251 , and $ 393 for the years ended December 31, 202 1 , 20 20 and 201 9 , 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 . The Company also has certain cash accounts that are denominated in currencies other than the Company's functional currency, which are remeasured at each balance sheet date at the exchange rates in effect as of those dates. The gains (losses) due to changes in exchange rates from remeasurement were $(524), $654 and $0 for the years ended December 31, 2021, 2020 and 2019, respectively, which were included in “other, net” in the consolidated statements of operations. ( 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. As of December 31, 2021 and 2020, fixed assets amounted to $1,585 and $746, respectively, net of accumulated depreciation of $13,296 and $12,918, respectively, which were included in “other assets” in the consolidated balance sheets. Implementation costs associated with cloud based hosting arrangement that is a service contract are capitalized when incurred during the application development phase. As of December 31, 2021 and 2020, the Company’s capitalized implementation costs amounting to $8,767 and $4,212, respectively, were included in “prepaid expenses and other current assets” in the Company’s consolidated balance sheets. Amortization of the capitalized implementation costs will commence in 2022 when the hosting arrangement is ready for its intended use and will be amortized on a straight-line basis over seven years which is the term of the hosting arrangement, including reasonably certain renewals. ( 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, 2021 and 2020 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, 2021 and 2020 were as follows: 2021 2020 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Dry containers other than open top and flat rack containers: 20' $ 1,530,464 $ (471,549 ) $ 1,058,915 $ 1,532,753 $ (428,913 ) $ 1,103,840 40' 141,292 (55,448 ) 85,844 144,881 (55,154 ) 89,727 40' high cube 3,496,469 (791,349 ) 2,705,120 2,717,384 (672,416 ) 2,044,968 45' high cube 27,354 (13,871 ) 13,483 27,880 (12,747 ) 15,133 Refrigerated containers: 20' 18,445 (8,899 ) 9,546 20,164 (8,493 ) 11,671 20' high cube 809 (606 ) 203 2,605 (1,742 ) 863 40' high cube 1,163,149 (462,645 ) 700,504 1,103,817 (398,721 ) 705,096 Open top and flat rack containers: 20' folding flat 16,206 (5,291 ) 10,915 17,228 (5,132 ) 12,096 40' folding flat 47,739 (19,073 ) 28,666 49,167 (18,275 ) 30,892 20' open top 13,046 (2,090 ) 10,956 13,253 (1,790 ) 11,463 40' open top 21,394 (4,827 ) 16,567 22,271 (4,738 ) 17,533 Tank containers 107,175 (16,016 ) 91,159 93,240 (11,470 ) 81,770 Total Containers $ 6,583,542 $ (1,851,664 ) $ 4,731,878 $ 5,744,643 $ (1,619,591 ) $ 4,125,052 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, 202 1 , 20 20 and 201 9 . Write-Off (Recoveries) of Container Rental Equipment due to Lessees in Default The Company evaluates the recoverability of the recorded amounts of containers that are unlikely to be recovered from lessees in default. The Company recorded impairment charges during the years ended December 31, 2021, 2020 and 2019 of $2,793, $0 and $9,167, respectively, to write-off containers that were unlikely to be recovered from lessees in default, offset by gains of $7,662, $1,647 and $1,988, respectively, associated with recoveries on containers previously estimated as lost with lessees in default. The gain on container recovery of $7,577 during the year ended December 31, 2021 was due to the reinstatement of containers with a previously insolvent and bankrupt lessee who made a successful exit from bankruptcy, and such containers had been written off in 2019. The gain on container recovery of $1,644 during the year ended December 31, 2020 was due to a settlement agreement with an insolvent lessee on containers which were previously written off in 2018. 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, under observable (Level 2) market inputs. 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 sold or otherwise retired, the cost and related accumulated depreciation are removed, and any resulting gain or loss is recognized. Subsequent additions or reductions to the fair values of these written down assets are recorded as adjustments to the carrying value of the containers held for sale. The carrying value of containers held for sale that have been impaired and written down to their estimated fair value less cost to sell was $270 and $5,845 as of December 31, 2021 and 2020, respectively. Any subsequent increase in fair value less costs 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, 2021, 2020 and 2019, the Company recorded container impairment (reversals) charges of $(385), $11,094 and $14,238, 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 (reversals) charges are included in “depreciation expense” in the consolidated statements of operations. During the years ended December 31, 2021, 2020 and 2019, 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: 2021 2020 2019 Units Amount Units Amount Units Amount Gain on sale of previously written down owned fleet containers, net 3,430 $ 2,165 51,541 $ 15,451 52,319 $ 6,665 Gain on sale of owned fleet containers not written down, net 50,550 65,064 54,807 11,779 52,126 14,732 Gain on sale of owned fleet containers, net 53,980 $ 67,229 106,348 $ 27,230 104,445 $ 21,397 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 2021, 2020 and 2019, debt issuance costs of $27,895, $13,637 and $9,417, respectively, were capitalized and amortization of debt issuance costs of $9,723, $7,712 and $7,369, respectively, were recorded in interest expense. When the Company’s debt is modified or terminated prior to maturity, 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 “debt termination |
Insurance Receivable and Impair
Insurance Receivable and Impairment | 12 Months Ended |
Dec. 31, 2021 | |
Loss Contingency [Abstract] | |
Insurance Receivable and Impairment | (2) Insurance Receivable and Impairment One of the Company’s customers became bankrupt in 2019. As a result of the assessment of the previously insolvent customer’s restructuring and successful exit from bankruptcy, the Company recorded a container loss recovery of $7,986 included in “ in the consolidated statements of operations during the year ended December 31, 2021. “ during 2021 |
Managed Container Fleet
Managed Container Fleet | 12 Months Ended |
Dec. 31, 2021 | |
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 reported on a gross basis. Lease rental income – managed fleet represents rental charges billed to the ultimate lessees 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, 2021 and 2020, deferred revenue from acquisition fees amounted to $947 and $1,049, respectively, which were combined and 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, 2021 and 2020. In 2021, the Company completed a container purchase of previously managed containers, that were in the Company’s managed fleet on or before December 31, 2018, from a Container Investor for a cash purchase price consideration of $57,637, which was recorded in the Company’s container leasing equipment as of December 31, 2021. As a result of the asset acquisition, the management agreement between the Company and the Container Investor was terminated and the Company recognized a loss of $116 for the effective settlement of the pre-existing contractual relationship at acquisition date which was included in “other, net” in the consolidated statements of operations. 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 - Leases 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 sheets as of December 31, 2021 and 2020 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 (l) “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. In 2021, the Company paid $2,725 in cash to purchase previously managed containers, that were in the Company’s managed fleet on or after January 1, 2019, from a Container Investor which resulted in the extinguishment of the deemed financial liability. As of December 31, 2021 and 2020, the Company’s container leaseback financial liability to the Container Investors amounted to $15,977 and $4,762, respectively, which were reported as "other liabilities” in the consolidated balance sheets. The Company’s container leasing equipment includes such managed containers in the consolidated balance sheets as of December 31, 2021 and 2020, which consisted of the following: 2021 2020 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Containers - owned fleet $ 6,566,785 $ (1,850,721 ) $ 4,716,064 $ 5,740,717 $ (1,619,304 ) $ 4,121,413 Containers - managed fleet 16,757 (943 ) 15,814 3,926 (287 ) 3,639 Total containers $ 6,583,542 $ (1,851,664 ) $ 4,731,878 $ 5,744,643 $ (1,619,591 ) $ 4,125,052 Total management fee income from the managed fleet, including management fees earned from acquisition fees and sales commissions during 2021, 2020 and 2019 were as follows (also, see Note 4 “Transactions with Affiliates and Container Investors”): 2021 2020 2019 Lease rental income - managed fleet $ 56,037 $ 62,448 $ 101,901 Less: distribution expense to managed fleet container investors (50,360 ) (57,311 ) (93,858 ) Less: depreciation and interest expense on managed containers purchased on or after January 1, 2019 (1,348 ) (730 ) (394 ) Management fees from leasing 4,329 4,407 7,649 Management fees from non-leasing services 3,360 5,271 7,590 Total management fees $ 7,689 $ 9,678 $ 15,239 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, 2021 and 2020 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. 2021 2020 Accounts receivable, net - owned fleet $ 118,107 $ 97,950 Accounts receivable, net - managed fleet 7,639 10,628 Total accounts receivable, net $ 125,746 $ 108,578 Prepaid expenses and other current assets - owned fleet $ 14,142 $ 13,614 Prepaid expenses and other current assets - managed fleet 42 99 Total prepaid expenses and other current assets $ 14,184 $ 13,713 Accounts payable and accrued expenses - owned fleet $ 21,736 $ 23,198 Accounts payable and accrued expenses - managed fleet 375 1,187 Total accounts payable and accrued expenses $ 22,111 $ 24,385 Container contracts payable - owned fleet $ 140,968 $ 231,647 Total container contracts payable $ 140,968 $ 231,647 |
Transactions with Affiliates an
Transactions with Affiliates and Container Investors | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates and Container Investors | (4) Transactions with Affiliates and Container Investors Due from affiliates, net of $2,376 and $1,509, as of December 31, 2021 and 2020, 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 2021, 2020 and 2019 were as follows: 2021 2020 2019 Fees from affiliated Container Investors $ — $ — $ 3,527 Fees from unaffiliated Container Investors 7,689 9,678 11,374 Fees from Container Investors 7,689 9,678 14,901 Other fees — — 338 Total management fees $ 7,689 $ 9,678 $ 15,239 The following table provides a summary of due to container investors, net at December 31, 2021 and 2020: 2021 2020 Accounts receivable, net - managed fleet $ 7,639 $ 10,628 Prepaid expenses and other current assets - managed fleet 42 99 Accounts payable and accrued expenses - managed fleet (375 ) (1,187 ) 7,306 9,540 Distributions due to container investors on lease rentals collected, net of container expenses paid and management fees 10,679 9,157 Due to container investors, net $ 17,985 $ 18,697 There is no due to affiliated Container Investors as of December 31, 2021 and 2020. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | (5) Leases (a) Lessor The Company’s lease rental income during 2021, 2020 and 2019 were as follows: 2021 2020 2019 Owned Managed Total Owned Managed Total Owned Managed Total Lease rental income - operating leases $ 577,946 $ 54,652 $ 632,598 $ 469,109 $ 58,175 $ 527,284 $ 470,722 $ 96,227 $ 566,949 Interest income on net investment in finance leases 82,659 — 82,659 30,121 — 30,121 15,356 — 15,356 Interest income on container leaseback financing receivable 21,380 — 21,380 17,243 — 17,243 10,313 — 10,313 Variable lease revenue 12,708 1,385 14,093 21,952 4,273 26,225 21,468 5,674 27,142 Total lease rental income $ 694,693 $ 56,037 $ 750,730 $ 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 gain (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 $2,610, $(144) and $(1,027) for the years ended December 31, 2021, 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, 2021: Owned Managed Total Year ending December 31: 2022 446,284 29,946 476,230 2023 400,845 26,955 427,800 2024 332,978 23,508 356,486 2025 258,530 18,888 277,418 2026 187,451 13,976 201,427 2027 and thereafter 364,757 15,824 380,581 Total future minimum lease payments receivable $ 1,990,845 $ 129,097 $ 2,119,942 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 that are accounted for as financing transactions. The following table represents the components of the container leaseback financing receivable as of December 31, 2021 and 2020: 2021 2020 Future minimum payments receivable $ 483,325 $ 505,473 Less: unearned income (129,065 ) (141,181 ) Container leaseback financing receivable (1) 354,260 364,292 Less: Allowance for credit losses (113 ) (424 ) Container leaseback financing receivable, net $ 354,147 $ 363,868 Amounts due within one year 30,317 27,076 Amounts due beyond one year 323,830 336,792 Container leaseback financing receivable, net $ 354,147 $ 363,868 (1) One major customer represented 90.6% and 89.7% of the Company’s container leaseback financing receivable portfolio as of December 31, 2021 and 2020, respectively. As of December 31, 2020, one other customer represented 10.3% 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, 2021 and 2020: 2021 2020 Future minimum lease payments receivable $ 2,558,339 $ 1,216,086 Residual value of containers 16,532 12,601 Less: unearned income (768,038 ) (347,394 ) Net investment in finance leases (1) $ 1,806,833 $ 881,293 Less: Allowance for credit losses (743 ) (1,333 ) Net investment in finance leases, net $ 1,806,090 $ 879,960 Amounts due within one year $ 113,048 $ 78,459 Amounts due beyond one year 1,693,042 801,501 Net investment in finance leases, net $ 1,806,090 $ 879,960 (1) One major customer represented 85.1% and 80.1% of the Company’s finance lease portfolio as of December 31, 2021 and 2020, respectively. No other customer represented more than 10% of the Company’s finance leases portfolio in each of those periods. 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, 2021: Year ending December 31: Container Leaseback Financing Receivable Net Investment in Finance Leases Total 2022 $ 50,515 $ 215,431 $ 265,946 2023 50,514 205,192 255,706 2024 46,427 201,925 248,352 2025 39,015 196,225 235,240 2026 37,524 198,151 235,675 2027 and thereafter 259,330 1,541,415 1,800,745 Total future minimum lease payments receivable $ 483,325 $ 2,558,339 $ 3,041,664 (b) Lessee Right-of-use (“ROU”) lease assets and lease liabilities 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 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, 2021 and 2020, ROU operating lease assets amounted to $8,988 and $10,331, respectively, which were reported in “other assets” in the consolidated balance sheets. As of December 31, 2021 and 2020, total lease liabilities amounted to $11,044 and $12,636, respectively, which were reported in “other liabilities” in the consolidated balance sheets. As of December 31, 2021, the weighted average discount rate was 4.75% and the weighted average remaining lease term was 4 years. 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 and other information related to the Company's operating leases during 2021, 2020 and 2019 are as follows: 2021 2020 2019 Operating lease cost $ 2,103 $ 2,103 $ 2,095 Short-term and variable lease cost 112 128 138 Total rent expense $ 2,215 $ 2,231 $ 2,233 Cash paid for amounts included in the measurement of lease liabilities $ 2,379 $ 2,221 $ 2,098 Future minimum lease payment obligations under the Company’s noncancelable operating leases at December 31, 2021 were as follows: Operating leasing Year ending December 31: 2022 2,271 2023 2,417 2024 2,397 2025 2,130 2026 2,179 2027 and thereafter 935 Total minimum lease payments 12,329 Less imputed interest (1,285 ) Total present value of operating lease liabilities $ 11,044 |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2021 | |
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 allowance for credit losses included in accounts receivable, net, amounted to $1,290 and $2,663 as of December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, the allowance for credit losses related to the billed amounts under the container leaseback financing receivable and finance leases that were included in accounts receivable, net, amounted to $592 and $735, respectively. Net Investment in Finance Leases and Container Leaseback 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 $743 and $1,333 as of December 31, 2021 and 2020, respectively. The allowance for credit losses related to unbilled amounts under the financing arrangements and included in container leaseback financing receivable, net, amounted to $113 and $424 as of December 31, 2021 and 2020, respectively. As of December 31, 2021, 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 89.1% and 90.6%, 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, 2021: Year Ended December 31, 2021 2020 2019 2018 2017 Prior Total Tier 1 $ 859,924 $ 594,567 $ 105,141 $ 33,410 $ 6,864 $ 9,500 $ 1,609,406 Tier 2 86,117 37,232 33,959 18,612 5 4,910 180,835 Tier 3 7,712 2,347 5,855 535 — 143 16,592 Net investment in finance leases $ 953,753 $ 634,146 $ 144,955 $ 52,557 $ 6,869 $ 14,553 $ 1,806,833 Tier 1 $ 12,108 $ 107,758 $ 201,114 $ — $ — $ — $ 320,980 Tier 2 5,290 — 27,990 — — — 33,280 Container leaseback financing receivable $ 17,398 $ 107,758 $ 229,104 $ — $ — $ — $ 354,260 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
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 (benefit) for 2021, 2020 and 2019 consisted of the following: 2021 2020 2019 Current Bermuda $ — $ — $ — Foreign 594 446 499 594 446 499 Deferred Bermuda — — — Foreign 1,179 (819 ) 1,449 1,179 (819 ) 1,449 $ 1,773 $ (374 ) $ 1,948 The components of income before income taxes and noncontrolling interest were as follows: 2021 2020 2019 Bermuda sources $ — $ — $ — Foreign sources 286,061 73,299 58,504 $ 286,061 $ 73,299 $ 58,504 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: 2021 2020 2019 Bermuda tax rate $ — 0.00 % $ — 0.00 % $ — 0.00 % Foreign tax rate 271 0.09 % (1,291 ) (1.76 )% 188 0.32 % Tax uncertainties 1,502 0.53 % 917 1.25 % 1,760 3.01 % $ 1,773 0.62 % $ (374 ) (0.51 )% $ 1,948 3.33 % The components of income tax expense and effective tax rate were as follows: 2021 2020 2019 Income before income tax and noncontrolling interests $ 286,061 $ 73,299 $ 58,504 Tax uncertainties $ 1,502 0.53 % $ 917 1.25 % $ 1,760 3.01 % Foreign taxes Stock base compensation (622 ) (0.22 )% (94 ) (0.13 )% 390 0.67 % 162(m) officers' compensation 412 0.14 % 102 0.14 % 15 0.03 % Adjustment for prior years (392 ) (0.14 )% 47 0.06 % 270 0.46 % Foreign derived intangible income (329 ) (0.12 )% (112 ) (0.15 )% (77 ) (0.13 )% Valuation allowance (382 ) (0.13 )% 67 0.09 % 315 0.54 % Foreign rate difference 1,583 0.55 % (1,333 ) (1.82 )% (778 ) (1.33 )% Other 1 0.00 % 32 0.04 % 53 0.09 % 271 0.09 % (1,291 ) (1.76 )% 188 0.32 % $ 1,773 0.62 % $ (374 ) (0.51 )% $ 1,948 3.33 % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 are presented below: 2021 2020 Deferred tax assets Net operating loss carryforwards $ 17,765 $ 19,284 Other 1,006 1,457 18,771 20,741 Valuation allowance — (382 ) Deferred tax assets 18,771 20,359 Deferred tax liabilities Containers, net 25,287 25,043 Other — 654 Deferred tax liabilities 25,287 25,697 Net deferred tax liabilities $ 6,516 $ 5,338 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, as well as the estimated usage of deferred tax assets to offset against 2021 taxable income, the Company’s management believes it is more likely than not the Company will realize the benefits of these deductible differences in 2021, thus no valuation allowance has been provided for the year ended December 31, 2021. In comparison, the Company did not realize a portion of the benefits of these deductible differences in 2020, thus a valuation allowance was provided for the year ended December 31, 2020. 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 (prior to factoring in 2021 net taxable income, estimated to be $2,752, fully offset by existing net operating losses) through December 31, 2037 if not utilized and $24,735 with no expiration date. The Company expects to utilize the net operating loss carry-forwards prior to their expiration. 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 period result in a cumulative change of more than 50 % in the beneficial ownership of a company’s stock. The Company’s management does not believe the Company has a limitation on the ability to utilize its net operating loss carry-forwards under Section 382 as of December 31, 202 1 . However, issuances, sales and/or exchanges of the Company’s stock (including, potentially, relatively small transactions and transactions beyond the Company’s control) occurring after December 31, 202 1 , taken together with prior transactions with respect to the Company’s stock over a three-year period, could trigger an ownership change under Section 382 in the future and therefore a limitation on the Company’s ability to utilize its net operating loss carryforwards. Any such limitation could cause some loss carryforwards to expire before the Company would be able to utilize them to reduce taxable income in future periods, possibly resulting in a substantial income tax expense or write down of the Company’s tax assets or both. 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, 2021, cumulative earnings of approximately $45,361 would be subject to income taxes of approximately $13,608 if such earnings of foreign corporations were transferred out of such jurisdictions in the form of dividends. The Company’s foreign tax returns, including the United States, State of California, State of New Jersey, State of Texas, Malaysia, Singapore, and United Kingdom, are subject to examination by the various tax authorities. The Company’s foreign tax returns are no longer subject to examinations by taxing authorities for years before 2015, except for its United States and State of California tax returns which are no longer subject to examinations for years before 2011 and 2008, respectively. A reconciliation of the beginning and ending unrecognized tax benefit amounts for 2021 and 2020 are as follows: 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 Increases related to prior year tax positions 156 Increases related to current year tax positions 2,878 Lapse of statute of limitations (1,457 ) Balance at December 31, 2021 $ 22,152 If the unrecognized tax benefits of $22,152 at December 31, 2021 were recognized, tax benefits in the amount of $22,084 would reduce our annual effective tax rate. The Company believes the total amount of unrecognized tax benefit as of December 31, 2021 will decrease by $1,777 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 2021, 2020 and 2019 amounted to $(78), $(11) and $182, respectively. Total accrued interest and penalties as of December 31, 2021 and 2020 were $1,381 and $1,460, respectively, and were included in non-current income taxes payable. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | (8) Debt The following represents the Company’s debt obligations as of December 31, 2021 and 2020: Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable 2021 2020 Outstanding Average Interest Outstanding Average Interest Final Maturity TL Revolving Credit Facility $ 1,059,950 1.60 % $ 1,433,919 1.65 % September 2023 TL 2019 Term Loan 137,513 3.50 % 148,131 3.50 % December 2026 TL 2021-1 Term loan 65,131 2.65 % — 0.00 % February 2028 TL 2021-2 Term Loan 204,712 2.90 % — 0.00 % October 2028 TMCL II Secured Debt Facility (1) 1,067,886 1.75 % 646,551 1.91 % November 2028 TMCL VI Term Loan — 0.00 % 223,630 4.29 % — TMCL VII 2019-1 Bonds — 0.00 % 300,305 4.02 % — TMCL VII 2020-1 Bonds 384,611 3.07 % 429,600 3.07 % August 2045 TMCL VII 2020-2 Bonds 530,565 2.26 % 587,183 2.26 % September 2045 TMCL VII 2020-3 Bonds 194,414 2.15 % 214,168 2.15 % September 2045 TMCL VII 2021-1 Bonds 508,024 1.72 % — 0.00 % February 2046 TMCL VII 2021-2 Bonds 610,111 2.27 % — 0.00 % April 2046 TMCL VII 2021-3 Bonds 577,603 1.98 % — 0.00 % August 2046 TAP Funding Revolving Credit Facility — 0.00 % 131,857 2.11 % — Total debt obligations $ 5,340,520 $ 4,115,344 Amount due within one year $ 380,207 $ 408,365 Amounts due beyond one year $ 4,960,313 $ 3,706,979 (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, 2021. Secured Debt Facility (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 $1,500,000. There is a commitment fee on the unused amount of the total commitment, payable monthly in arrears. In May 2021, In November 2021, TMCL II entered into an amendment of the TMCL II Secured Debt Facility, which extended the conversion date and final maturity date to November 2024 November 2028 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. 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 In February 2021, the Company fully repaid and terminated the TAP Funding Revolving Credit Facility. Term Loans (a) TL TL 2019 Term Loan. 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 payable monthly in arrears. TL 2021-1 Term Loan. In February 2021, TL completed a $70,270 fixed rate term loan (the “TL 2021-1 Term Loan”) with a group of financial institutions. Interest on the outstanding amount due under this term loan is payable monthly in arrears. Proceeds from this term loan were used to pay down TL’s revolving credit facility TL 2021-2 Term Loan. In October 2021, TL completed a $209,000 fixed rate term loan (the “TL 2021-2 Term Loan”) with a group of financial institutions. Interest on the outstanding amount due under this term loan is payable monthly in arrears. Proceeds from this term loan were primarily used to pay down the Company’s revolving credit facilities (b) TMCL VI Textainer Marine Containers VI Limited (“TMCL VI”), a Bermuda company which was wholly-owned by TL, had 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. In August 2021, TMCL VI terminated its The Company made a loan termination payment of and unamortized debt issuance costs of were written-off, both related to the early redemption of . Bonds Payable (a) TMCL VII TMCL VII 2019-1 Bonds. TMCL VII issued $328,900 of aggregate Class A principal amount and $21,100 of aggregate Class B principal amount of the Series 2019-1 Fixed Rate Asset Backed Notes (the “TMCL VII 2019-1 Bonds”). Under the terms of the TMCL VII 2019-1 Bonds, both principal and interest incurred are payable monthly. In April 2021, TMCL VII 2019-1 Bonds was terminated and fully repaid by proceeds from the TMCL VII 2021-2 Bonds. Unamortized debt issuance costs and bond discounts of $2,857 were written-off related to the early redemption of TMCL VII 2019-1 Bonds . TMCL VII 2020-1 Bonds. 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. TMCL VII 2020-2 Bonds. 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. TMCL VII 2020-3 Bonds. 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. TMCL VII 2021-1 Bonds. In February 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”). Under the terms of the TMCL VII 2021-1 Bonds, both principal and interest incurred are payable monthly. Proceeds from the TMCL VII 2021-1 Bonds were primarily used to pay down the Company’s revolving credit facilities. TMCL VII 2021-2 Bonds. In April 2021, TMCL VII issued $605,200 of aggregate Class A and $46,000 of aggregate Class B Series 2021-2 Fixed Rate Asset Backed Notes (“the TMCL VII 2021-2 Bonds”). Under the terms of the TMCL VII 2021-2 Bonds, both principal and interest incurred are payable monthly. Proceeds from the TMCL VII 2021-2 Bonds were primarily used to pay down the Company’s revolving credit facilities and to pay off the TMCL VII 2019-1 Bonds TMCL VII 2021-3 Bonds. In August 2021, TMCL VII issued $548,800 of aggregate Class A and $51,200 of aggregate Class B Series 2021-3 Fixed Rate Asset Backed Notes (“the TMCL VII 2021-3 Bonds”). Under the terms of the TMCL VII 2021-3 Bonds, both principal and interest incurred are payable monthly. Proceeds from the TMCL VII 2021-3 Bonds were primarily used to pay down the Company’s revolving credit facilities and to pay off the TMCL VI Term Loan Estimated Future Principal Payments The following is a schedule of future scheduled repayments, by year, and borrowing capacities, as of December 31, 2021: Twelve months ending December 31, Available borrowing, Current and Available Borrowing, 2022 2023 2024 2025 2026 2027 and thereafter Total Borrowing as limited by the Borrowing Base as limited by the Borrowing Base TL Revolving Credit Facility $ — $ 1,062,858 $ — $ — $ — $ — $ 1,062,858 $ 299,494 $ 1,362,352 TL 2019 Term Loan 11,285 11,686 12,102 12,532 90,973 — 138,578 — 138,578 TL 2021-1 Term loan 5,490 5,637 5,789 5,944 6,103 36,841 65,804 — 65,804 TL 2021-2 Term Loan 14,434 14,858 15,294 15,743 16,205 130,101 206,635 — 206,635 TMCL II Secured Debt Facility (1) 75,345 69,210 70,628 82,028 74,191 702,339 1,073,741 — 1,073,741 TMCL VII 2020-1 Bonds (2) 56,921 57,675 58,419 57,411 51,728 106,040 388,194 — 388,194 TMCL VII 2020-2 Bonds (2) 61,149 66,779 69,345 69,631 68,296 200,490 535,690 — 535,690 TMCL VII 2020-3 Bonds (2) 20,111 20,111 20,111 20,111 20,111 95,306 195,861 — 195,861 TMCL VII 2021-1 Bonds (2) 44,000 44,000 44,000 44,000 44,000 293,333 513,333 — 513,333 TMCL VII 2021-2 Bonds (2) 52,096 52,096 52,096 52,096 52,096 355,989 616,469 — 616,469 TMCL VII 2021-3 Bonds (2) 48,000 48,000 48,000 48,000 48,000 344,000 584,000 — 584,000 Total (3) $ 388,831 $ 1,452,910 $ 395,784 $ 407,496 $ 471,703 $ 2,264,439 $ 5,381,163 $ 299,494 $ 5,680,657 (1) The estimated future scheduled repayments for TMCL II Secured Debt Facility are based on the assumption that the facility will not be extended on its associated conversion date. ( 2 ) Future scheduled payments for all bonds payable exclude unamortized discounts in an aggregate amount of $613. ( 3 ) Future scheduled payments for all debts exclude prepaid debt issuance costs in an aggregate amount of $40,030. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2021 | |
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 variable rate debt. The counterparties to the Company’s interest rate swap agreements are highly rated financial institutions. In the unlikely event that the counterparties fail to meet the terms of the interest rate swap agreements, the Company’s exposure is limited to the interest rate differential on the notional amount at each monthly settlement period over the life of the agreements. The Company monitors its counterparties’ credit ratings on an on-going basis and does not anticipate any non-performance by the counterparties. The Company does not have any master netting arrangements with its counterparties. The Company 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 following table summarizes the fair value of derivative instruments, which are inclusive of counterparty risk, on the consolidated balance sheets 2021 2020 Assets Interest rate swaps - designated as hedges $ 12,278 $ 47 Total $ 12,278 $ 47 Liabilities Interest rate swaps - designated as hedges $ 2,139 $ 9,665 Interest rate swaps - not designated as hedges — 19,570 Total $ 2,139 $ 29,235 The following table summarizes the Company’s derivative instruments , which were all designated as cash flow hedges as of December 31, 2021: Notional Derivative instruments amount Interest rate swap contracts with several banks that were indexed to one-month LIBOR, with fixed rates between 0.17% and 1.28% per annum, amortizing notional amounts, with termination dates through May 30, 2031 $ 856,250 Interest rate swap contracts with several banks that were indexed to daily SOFR, with fixed rates between 0.36% and 1.48% per annum, amortizing notional amounts, with termination dates through March 17, 2031 (1) 868,000 Total notional amount as of December 31, 2021 $ 1,724,250 (1) In November 2021, the Company amended certain interest rate swap contracts which were related to the replacement of LIBOR to SOFR due to the reference rate reform. During the year ended December 31, 2021, the Company early terminated a total notional amount of $508,250 interest rate swaps not designated as cash flow hedges with a total settlement amount of $14,552, including accrued interest. During the year ended December 31, 2021, the Company entered into new interest rate swaps designated as cash flow hedges with a total notional amount of $1,030,000 . Over the next twelve months, the Company expects to reclassify an estimated net loss of $13,365 related to the designated interest rate swap agreements from “accumulated other comprehensive income” in the consolidated statements of shareholders’ equity to “interest expense” in the consolidated statements of operations. 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, 2021, 2020 and 2019: 2021 2020 2019 Derivative instruments Financial Statement Caption Non-designated Realized (loss) gain on financial instruments, net $ (5,408 ) $ (12,295 ) $ 1,939 Non-designated Unrealized gain (loss) on financial instruments, net $ 5,220 $ (6,044 ) $ (15,442 ) Designated Other comprehensive income (loss) $ 10,986 $ (12,307 ) $ (110 ) Designated Interest expense, net $ (8,771 ) $ (2,806 ) $ 7 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
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 2021, 2020 and 2019: Container Container Container 2021 Ownership Management Resale Other Eliminations Totals Lease rental income - owned fleet $ 694,045 $ 648 $ — $ — $ — $ 694,693 Lease rental income - managed fleet — 56,037 — — — 56,037 Lease rental income $ 694,045 $ 56,685 $ — $ — $ — $ 750,730 Management fees - non-leasing from external customers $ — $ 373 $ 2,987 $ — $ — $ 3,360 Inter-segment management fees $ — $ 83,074 $ 9,954 $ — $ (93,028 ) $ — Trading container margin $ — $ — $ 10,760 $ — $ — $ 10,760 Gain on sale of owned fleet containers, net $ 67,229 $ — $ — $ — $ — $ 67,229 Depreciation expense $ 289,610 $ 1,110 $ — $ — $ (9,145 ) $ 281,575 Container lessee default recovery, net $ 1,088 $ — $ — $ — $ — $ 1,088 Interest expense $ 126,628 $ 641 $ — $ — $ — $ 127,269 Debt termination expense $ 15,209 $ — $ — $ — $ — $ 15,209 Realized loss on financial instruments, net $ 5,408 $ 226 $ — $ — $ — $ 5,634 Unrealized gain (loss) on financial instruments, net $ 5,220 $ (811 ) $ — $ — $ — $ 4,409 Segment income (loss) before income tax (1) $ 239,857 $ 46,706 $ 19,166 $ (4,845 ) $ (14,823 ) $ 286,061 Income tax expense $ 1,404 $ 369 $ — $ — $ — $ 1,773 Total assets $ 7,269,451 $ 230,810 $ 15,819 $ 12,644 $ (161,280 ) $ 7,367,444 Purchase of containers and fixed assets $ 1,991,898 $ 1,242 $ — $ — $ — $ 1,993,140 Payments on container leaseback financing receivable $ 18,705 $ — $ — $ — $ — $ 18,705 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 Debt termination expense $ 8,750 $ — $ — $ — $ — $ 8,750 Realized loss on financial instruments, net $ 12,295 $ — $ — $ — $ — $ 12,295 Unrealized loss on financial 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 Income tax benefit (expense) $ 1,088 $ (714 ) $ — $ — $ — $ 374 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 financial instruments, net $ 1,946 $ — $ — $ — $ — $ 1,946 Unrealized loss on financial 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 Income tax expense $ 1,086 $ 862 $ — $ — $ — $ 1,948 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 (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized gain (loss) on financial instruments, net of $4,409, $(6,044) and $(15,442) for the years ended December 31, 2021, 2020 and 2019, respectively, and debt termination expense of $15,209, $8,750 and $0 for the years ended December 31, 2021, 2020 and 2019, 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, 2021, 2020 and 2019 based on customers’ and Container Investors’ primary domicile: Years ended December 31, 2021 Percent of Total 2020 Percent of Total 2019 Percent of Total Lease rental income: Asia $ 373,614 49.8 % $ 302,709 50.4 % $ 329,567 53.2 % Europe 343,351 45.7 % 266,431 44.3 % 255,495 41.2 % North / South America 32,296 4.3 % 29,391 4.9 % 31,786 5.1 % Bermuda — — — — — — All other international 1,469 0.2 % 2,342 0.4 % 2,912 0.5 % $ 750,730 100.0 % $ 600,873 100.0 % $ 619,760 100.0 % Management fees, non-leasing: Bermuda $ 1,699 50.6 % $ 2,797 53.1 % $ 4,576 60.2 % Europe 1,530 45.5 % 2,397 45.5 % 2,334 30.8 % Asia 45 1.3 % 11 0.2 % 28 0.4 % North / South America 23 0.7 % 9 0.2 % 342 4.5 % All other international 63 1.9 % 57 1.0 % 310 4.1 % $ 3,360 100.0 % $ 5,271 100.0 % $ 7,590 100.0 % 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, 2021, 2020 and 2019 based on the location of sale: Years ended December 31, 2021 Percent of Total 2020 Percent of Total 2019 Percent of Total Trading container sales proceeds: Asia $ 14,317 44.7 % $ 14,896 46.6 % $ 39,519 67.3 % North / South America 12,404 38.7 % 13,045 40.9 % 12,788 21.8 % Europe 5,321 16.6 % 3,991 12.5 % 6,411 10.9 % Bermuda — — — — — — All other international 3 0.0 % 9 0.0 % 16 0.0 % $ 32,045 100.0 % $ 31,941 100.0 % $ 58,734 100.0 % Gain on sale of owned fleet containers, net: Asia $ 46,328 68.9 % $ 13,082 48.1 % $ 7,714 36.0 % Europe 10,516 15.7 % 5,538 20.3 % 5,577 26.1 % North / South America 10,385 15.4 % 8,610 31.6 % 6,809 31.8 % Bermuda — — — — — — All other international — — — — 1,297 6.1 % $ 67,229 100.0 % $ 27,230 100.0 % $ 21,397 100.0 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020 consisted of the following: 2021 2020 Trust accounts $ 16,289 $ 17,054 Other restricted cash accounts 60,073 57,093 Total restricted cash $ 76,362 $ 74,147 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, 2021, the Company had commitments to purchase containers to be delivered subsequent to December 31, 2021 in the total amount of $75,015. In January 2022, the Company also had commitments to purchase or fund containers under a sales-type leaseback financing arrangement with a lessee in the amount of $ . (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, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | (12) Share-Based Compensation As of December 31, 2021, 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, 2021, 2,105,418 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 for the years ended December 31, 2021, 2020, and 2019: Share options (common share equivalents) Weighted average exercise price 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 exercised during the period (477,103 ) $ 18.95 Options expired during the period (40,000 ) $ 32.70 Options forfeited during the period (19,128 ) $ 10.74 Balances, December 31, 2021 992,795 20.02 Options exercisable at December 31, 2021 833,186 $ 21.98 Options vested and expected to vest at December 31, 2021 986,011 $ 20.09 As of December 31, 2021, $622 of total compensation cost related to non-vested share option not yet recognized is expected to be recognized over a weighted average period of 1.5 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 $35.71 per share as of December 31, 2021 was $11,776. 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, 2021. The aggregate intrinsic value of all options exercised during 2021, 2020 and 2019, based on the closing share price on the date each option was exercised was $5,513, $710 and $4, respectively. The weighted average contractual life of options exercisable and outstanding as of December 31, 2021 was 4.4 years and 4.7 years, respectively. The Company did not grant any stock options during the years ended December 31, 2021 and 2020. The estimated weighted average grant date fair value of share options granted during 2019 was $4.47 per share, and was estimated using the Black-Scholes option pricing model for the year ended December 31, 2019 with the following assumptions.: 2019 Risk-free interest rates 1.7 % Expected terms (in years) 5.5 Expected common share price volatilities 52.9 % Expected dividends 0.0 % Expected forfeitures 3.4 % 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 and after 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 2021 and 2020, which are subject to both service and market vesting conditions. The PSU awards will vest at the end of a 3-year The following tables summarizes the activity of RSU and PSU awards for the years ended December 31, 2021, 2020, and 2019: RSU PSU (1) Total Weighted average grant date fair value Balances, December 31, 2018 640,750 — 640,750 $ 14.20 Share units granted during the period 309,192 — 309,192 $ 9.20 Share units vested during the period (281,377 ) — (281,377 ) $ 13.97 Share units forfeited during the period (10,945 ) — (10,945 ) $ 14.32 Balances, December 31, 2019 657,620 — 657,620 $ 11.95 Share units granted during the period 200,868 183,560 384,428 $ 16.96 Share units vested during the period (300,404 ) — (300,404 ) $ 12.08 Share units forfeited during the period (19,743 ) — (19,743 ) $ 12.62 Balances, December 31, 2020 538,341 183,560 721,901 $ 14.55 Share units granted during the period 102,956 104,834 207,790 $ 44.62 Share units vested during the period (2) (278,684 ) (7,004 ) (285,688 ) $ 12.32 Share units forfeited during the period (18,753 ) — (18,753 ) $ 12.70 Balances, December 31, 2021 343,860 281,390 625,250 $ 25.37 Total share units outstanding and expected to vest at December 31, 2021 590,615 $ 25.12 (1) The grant date fair value of PSU awards granted during 2021 and 2020 were $55.85 per share and $22.06 per share, respectively. On the settlement date for each measurement period of market-based awards, grantees may receive shares equal to 0% to 200% of the three-year (2) As of December 31, 2021, an incremental fair value expense of $577 was recognized for certain awards that were modified to accelerate vesting upon retirement. As of December 31, 2021, $11,889 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 1.9 years There were no PSU awards PSU awards 2021 2020 Risk-free interest rates 0.54 % 0.16 % Expected common share price volatilities 59.80 % 57.40 % Expected dividends 0.0 % 0.0 % |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | (13) Shareholders’ Equity Share Repurchase Program In 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 2020 the board of directors approved an increase of another $75,000 to this program and in 2021 the program was further increased by $100,000. 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 did not obligate the Company to acquire a specific number of shares during any period, but it may be modified, suspended or terminated at any time at the discretion of the Company’s board of directors. 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. During the year ended December 31, 2021, the Company repurchased 2,426,725 shares at an average price of $29.76 for a total amount of $72,220, including commissions paid. As of December 31, 2021, approximately $51,134 remained available for repurchases under the share repurchase program. Preferred Shares In April 2021, the Company completed an underwritten public offering of 6,000,000 depositary shares, each representing a 1/1,000 th In August 2021, the Company completed an underwritten public offering of 6,000,000 depositary shares, each representing a 1/1,000 th Each Series of preferred shares may be redeemed at the Company’s option, at any time after approximately five years from original issuance, for cash at a redemption price of $25.00 per depositary share plus an amount equal to all accumulated and unpaid dividends, whether or not declared. The Company may also redeem each Series of preferred shares in the event of a Change of Control (as defined in the Certificate of Designations). If the Company does not elect to redeem the preferred shares in a Change of Control triggering event, holders of each Series of preferred shares may have the right to convert their preferred shares into common shares. There is no mandatory redemption of each Series of preferred shares or redemption at the option of the holders. Holders of the preferred shares do not have general voting rights. Preferred Share Dividends Dividends on each Series of preferred shares accrue daily and are cumulative from and including the date of original issuance and are payable quarterly in arrears on the 15 th The Company’s board of directors approved and declared the following quarterly cash dividends during the year ended December 31, 2021 on its issued and outstanding preferred shares: Series A Preferred Shares Series B Preferred Shares Record Date Payment Date Aggregate Payment Per Depositary Share Payment (1) Aggregate Payment Per Depositary Share Payment (1) May 31, 2021 June 15, 2021 $ 1,808 $ 0.30 — — August 31, 2021 September 15, 2021 $ 2,625 $ 0.44 — — December 3, 2021 December 15, 2021 $ 2,625 $ 0.44 $ 2,917 $ 0.49 (1) Rounded to the nearest whole cent. As of December 31, 2021, the Company had cumulative unpaid preferred dividends of $854. Common Share Dividends The Company’s board of directors approved and declared a cash dividend of $0.25 per share on its issued and outstanding common shares for a total aggregate amount of $12,285, paid on December 15, 2021 to holders of record as of December 3, 2021. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | (14) Subsequent Event In February 2022, the Company’s board of directors approved and declared a quarterly preferred cash dividend on its issued and outstanding preferred shares, payable on March 15, 2022, to holders of record as of March 4, 2022. The dividend declared on Series A Preferred Shares and Series B Preferred Shares were $0.44 and $0.39 per depositary share (rounded to the nearest whole cent), respectively, for a total aggregate amount of $2,625 and $2,344, respectively. In February 2022, the Company’s board of directors approved and declared a cash dividend of $0.25 per share on its issued and outstanding common shares, payable on March 15, 2022, to holders of record as of March 4, 2022. |
Schedule I - Parent Company Inf
Schedule I - Parent Company Information | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019 (All currency expressed in United States dollars in thousands) 2021 2020 2019 Operating expenses: General and administrative expense $ 4,519 $ 3,988 $ 4,089 Total operating expenses 4,519 3,988 4,089 Loss from operations (4,519 ) (3,988 ) (4,089 ) Other income: Equity in net income of subsidiaries 289,133 76,076 60,813 Interest income 55 80 — Other, net (381 ) 654 — Net other income 288,807 76,810 60,813 Income before income tax 284,288 72,822 56,724 Income tax benefit (expense) — — — Net income 284,288 72,822 56,724 Less: Dividends on preferred shares 10,829 — — Net income attributable to common shareholders $ 273,459 $ 72,822 $ 56,724 Net income attributable to common shareholders per share: Basic $ 5.51 $ 1.37 $ 0.99 Diluted $ 5.41 $ 1.36 $ 0.99 Weighted average shares outstanding (in thousands): Basic 49,624 53,271 57,349 Diluted 50,576 53,481 57,459 Other comprehensive income, before tax: Change in derivative instruments designated as cash flow hedges 10,986 (12,307 ) (110 ) Reclassification of realized loss (gain) on derivative instruments designated as cash flow hedges 8,771 2,806 (7 ) Foreign currency translation adjustments (79 ) 177 42 Comprehensive income, before tax 303,966 63,498 56,649 Income tax (expense) benefit related to items of other comprehensive income (184 ) 91 — Comprehensive income, after tax 303,782 63,589 56,649 Less: Dividends on preferred shares 10,829 — — Comprehensive income attributable to common shareholders $ 292,953 $ 63,589 $ 56,649 TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES SCHEDULE I - CONDENSED BALANCE SHEETS Parent Company Information December 31, 2021 and 2020 (All currency expressed in United States dollars in thousands) 2021 2020 Assets Current assets: Cash and cash equivalents $ 10,696 $ 12,372 Prepaid expenses and other current assets 378 336 Due from affiliates, net 2,231 2,679 Total current assets 13,305 15,387 Investments in subsidiaries 1,768,779 1,245,427 Total assets $ 1,782,084 $ 1,260,814 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable and accrued expenses $ 830 $ 394 Total current liabilities 830 394 Shareholders’ equity: Preferred shares 300,000 - Common shares 595 587 Treasury shares (158,459 ) (86,239 ) Additional paid-in capital 428,945 417,421 Accumulated other comprehensive income (loss) 9,750 (9,744 ) Retained earnings 1,200,423 938,395 Total shareholders’ equity 1,781,254 1,260,420 Total liabilities and shareholders’ equity $ 1,782,084 $ 1,260,814 TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES SCHEDULE I - CONDENSED STATEMENTS OF CASH FLOWS Parent Company Information Years ended December 31, 2021, 2020 and 2019 (All currency expressed in United States dollars in thousands) 2021 2020 2019 Cash flows from operating activities: Net income $ 284,288 $ 72,822 $ 56,724 Adjustments to reconcile net income to net cash provided by operating activities: Equity in net income of subsidiaries (289,133 ) (76,076 ) (60,813 ) Dividends received from subsidiaries 61,000 76,167 46,823 Share-based compensation 6,699 4,723 4,388 Decrease (increase) in: Prepaid expenses and other current assets (42 ) (26 ) (128 ) Increase (decrease) in: Accounts payable and accrued expenses 436 (82 ) (237 ) Total adjustments (221,040 ) 4,706 (9,967 ) Net cash provided by operating activities 63,248 77,528 46,757 Cash flows from investing activities: Investments in subsidiaries (269,436 ) (2,050 ) (41,865 ) Net cash used in investing activities (269,436 ) (2,050 ) (41,865 ) Cash flows from financing activities: Issuance of preferred shares, net of underwriting discount 290,550 — — Purchase of treasury shares (72,220 ) (68,493 ) (8,597 ) Issuance of common shares upon exercise of share options 9,043 1,295 126 Dividends paid on common shares (12,285 ) — — Dividends paid on preferred shares (9,975 ) — — Due to (from) affiliates, net 448 (2,041 ) 49 Other (970 ) — — Net cash provided by (used in) financing activities 204,591 (69,239 ) (8,422 ) Effect of exchange rate changes (79 ) 177 42 Net (decrease) increase in cash and cash equivalents (1,676 ) 6,416 (3,488 ) Cash and cash equivalents, beginning of the year 12,372 5,956 9,444 Cash and cash equivalents, end of the year $ 10,696 $ 12,372 $ 5,956 |
Schedule II Valuation Accounts
Schedule II Valuation Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II Valuation Accounts | TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES Valuation Accounts Years ended December 31, 2021, 2020 and 2019 (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, 2019 Accounts receivable, allowance for doubtful accounts $ 5,729 $ 2,096 $ (1,526 ) $ 6,299 Net investment in finance leases, allowance for credit losses $ — $ — $ — $ — Container leaseback financing receivable, allowance for credit losses $ — $ — $ — $ — December 31, 2020 Accounts receivable, allowance for doubtful accounts $ 6,299 $ (3,149 ) $ (487 ) $ 2,663 Net investment in finance leases, allowance for credit losses (1) $ 636 $ 697 $ — $ 1,333 Container leaseback financing receivable, allowance for credit losses (1) $ 256 $ 168 $ — $ 424 December 31, 2021 Accounts receivable, allowance for doubtful accounts $ 2,663 $ (674 ) $ (699 ) $ 1,290 Net investment in finance leases, allowance for credit losses $ 1,333 $ (590 ) $ — $ 743 Container leaseback financing receivable, allowance for credit losses $ 424 $ (311 ) $ — $ 113 (1) Balance at beginning of the year was due to impact of adopting Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses on January 1, 2020. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 also manages and provides administrative support to the 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 and preferred 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 TAP Funding Ltd. (“TAP Funding”) (a Bermuda company) was a joint venture between the Company’s wholly-owned subsidiary, Textainer Limited (“TL”) (a Bermuda company) and TAP Ltd. (“TAP”) in which TL owned 50.1%, TAP owned 49.9% of the common shares of TAP Funding, and TAP Funding was a VME. The Company consolidated TAP Funding as the Company had a controlling financial interest in TAP Funding. In January 2021, the Company completed the acquisition of 49.9% of the common shares of TAP Funding from TAP for a total purchase price consideration of $21,500. After the acquisition of the noncontrolling interest (“NCI”), the Company owned 100% of TAP Funding and TAP Funding became a wholly-owned subsidiary of the Company. The Company accounted for this equity transaction as a reduction in the related NCI, and the difference between the carrying value of the NCI on January 1, 2021, and the cash consideration was recognized as an increase in additional paid-in capital (“APIC”) of $7,022. Prior to the Company’s dissolution of TAP Funding in May 2021, TAP Funding’s assets and liabilities were transferred to TL. Prior to the acquisition of the NCI, the equity owned by TAP in TAP Funding was shown as NCI on the Company’s consolidated balance sheet as of December 31, 2020 and the net income was shown as net income attributable to the NCI on the Company’s consolidated statements of operations for the years ended December 31, 2020 and 2019. After the capital restructuring, there is no NCI in TAP Funding on the Company’s consolidated balance sheet as of December 31, 2021 and there is no net income attributable to the NCI on the Company’s consolidated statements of operations for the year ended December 31, 2021. 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. Prior to the Company’s dissolution of LAPCO in February 2021, LAPCO’s assets and liabilities were transferred to TL. Managed Containers The Company enters into container management agreements with Container Investors. The fees earned by the Company for managing container portfolios on behalf of Container Investors are commensurate with the level of effort required to provide those management services and the Company does not have the obligation to absorb losses or the right to receive benefits that may be significant to the Container Investors. As such, the Company is not the primary beneficiary and does not consolidate the Container Investors. Managed containers which are owned by Container Investors are not assets of the Company and are not included in the consolidated financial statements, except for certain managed containers that the Company is deemed to own with associated container leaseback financial liability of the Company in accordance with Topic 842, Leases Owned Containers The majority of the container equipment included in the accompanying consolidated financial statements is owned by TL, Textainer Marine Containers II Limited (“TMCL II”) and Textainer Marine Containers VII Limited (“TMCL V II ”), all Bermuda companies and all of which were wholly-owned subsidiaries of the Company as of December 31, 20 2 1 and 20 20 . All owned containers are pledged as collateral for debt as of December 31, 20 2 1 and 20 20 . |
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. |
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. As of December 31, 2021 and 2020, intangible assets amounted to $178 and $2,719, respectively, net of accumulated amortization of $42,002 and $47,931, respectively, which were included in “other assets” in the consolidated balance sheets. The Company recorded a write-off of intangible assets amounting to $551 and $0 during the years ended December 31, 2021 and 2020, respectively, for the management rights relinquished relating to the Company’s purchase of containers previously managed for a container investor. As of December 31, 2021, the aggregate future amortization of intangible assets of $178 is expected to amortize through 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. The Company will cease recognition of lease revenue if and when a container lessee defaults in making timely payments and when determined that future lease payments are not likely to be collected from the lessee (s ee 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 Accounts receivable, net investment in finance leases and container leaseback financing receivable are stated at amortized cost net of allowance for credit losses. Subsequent changes in the estimated allowance for credit losses are recognized in “bad debt (recovery) expense, net” in the consolidated statements of operations (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 based upon historical trends and age of the balances. 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 i f 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 creditworthiness, 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 The Company’s 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 $ 195 , $ 251 , and $ 393 for the years ended December 31, 202 1 , 20 20 and 201 9 , 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 . The Company also has certain cash accounts that are denominated in currencies other than the Company's functional currency, which are remeasured at each balance sheet date at the exchange rates in effect as of those dates. The gains (losses) due to changes in exchange rates from remeasurement were $(524), $654 and $0 for the years ended December 31, 2021, 2020 and 2019, respectively, which were included in “other, net” in the consolidated statements of operations. |
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. As of December 31, 2021 and 2020, fixed assets amounted to $1,585 and $746, respectively, net of accumulated depreciation of $13,296 and $12,918, respectively, which were included in “other assets” in the consolidated balance sheets. Implementation costs associated with cloud based hosting arrangement that is a service contract are capitalized when incurred during the application development phase. As of December 31, 2021 and 2020, the Company’s capitalized implementation costs amounting to $8,767 and $4,212, respectively, were included in “prepaid expenses and other current assets” in the Company’s consolidated balance sheets. Amortization of the capitalized implementation costs will commence in 2022 when the hosting arrangement is ready for its intended use and will be amortized on a straight-line basis over seven years which is the term of the hosting arrangement, including reasonably certain renewals. |
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, 2021 and 2020 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, 2021 and 2020 were as follows: 2021 2020 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Dry containers other than open top and flat rack containers: 20' $ 1,530,464 $ (471,549 ) $ 1,058,915 $ 1,532,753 $ (428,913 ) $ 1,103,840 40' 141,292 (55,448 ) 85,844 144,881 (55,154 ) 89,727 40' high cube 3,496,469 (791,349 ) 2,705,120 2,717,384 (672,416 ) 2,044,968 45' high cube 27,354 (13,871 ) 13,483 27,880 (12,747 ) 15,133 Refrigerated containers: 20' 18,445 (8,899 ) 9,546 20,164 (8,493 ) 11,671 20' high cube 809 (606 ) 203 2,605 (1,742 ) 863 40' high cube 1,163,149 (462,645 ) 700,504 1,103,817 (398,721 ) 705,096 Open top and flat rack containers: 20' folding flat 16,206 (5,291 ) 10,915 17,228 (5,132 ) 12,096 40' folding flat 47,739 (19,073 ) 28,666 49,167 (18,275 ) 30,892 20' open top 13,046 (2,090 ) 10,956 13,253 (1,790 ) 11,463 40' open top 21,394 (4,827 ) 16,567 22,271 (4,738 ) 17,533 Tank containers 107,175 (16,016 ) 91,159 93,240 (11,470 ) 81,770 Total Containers $ 6,583,542 $ (1,851,664 ) $ 4,731,878 $ 5,744,643 $ (1,619,591 ) $ 4,125,052 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, 202 1 , 20 20 and 201 9 . Write-Off (Recoveries) of Container Rental Equipment due to Lessees in Default The Company evaluates the recoverability of the recorded amounts of containers that are unlikely to be recovered from lessees in default. The Company recorded impairment charges during the years ended December 31, 2021, 2020 and 2019 of $2,793, $0 and $9,167, respectively, to write-off containers that were unlikely to be recovered from lessees in default, offset by gains of $7,662, $1,647 and $1,988, respectively, associated with recoveries on containers previously estimated as lost with lessees in default. The gain on container recovery of $7,577 during the year ended December 31, 2021 was due to the reinstatement of containers with a previously insolvent and bankrupt lessee who made a successful exit from bankruptcy, and such containers had been written off in 2019. The gain on container recovery of $1,644 during the year ended December 31, 2020 was due to a settlement agreement with an insolvent lessee on containers which were previously written off in 2018. 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, under observable (Level 2) market inputs. 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 sold or otherwise retired, the cost and related accumulated depreciation are removed, and any resulting gain or loss is recognized. Subsequent additions or reductions to the fair values of these written down assets are recorded as adjustments to the carrying value of the containers held for sale. The carrying value of containers held for sale that have been impaired and written down to their estimated fair value less cost to sell was $270 and $5,845 as of December 31, 2021 and 2020, respectively. Any subsequent increase in fair value less costs 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, 2021, 2020 and 2019, the Company recorded container impairment (reversals) charges of $(385), $11,094 and $14,238, 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 (reversals) charges are included in “depreciation expense” in the consolidated statements of operations. During the years ended December 31, 2021, 2020 and 2019, 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: 2021 2020 2019 Units Amount Units Amount Units Amount Gain on sale of previously written down owned fleet containers, net 3,430 $ 2,165 51,541 $ 15,451 52,319 $ 6,665 Gain on sale of owned fleet containers not written down, net 50,550 65,064 54,807 11,779 52,126 14,732 Gain on sale of owned fleet containers, net 53,980 $ 67,229 106,348 $ 27,230 104,445 $ 21,397 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 2021, 2020 and 2019, debt issuance costs of $27,895, $13,637 and $9,417, respectively, were capitalized and amortization of debt issuance costs of $9,723, $7,712 and $7,369, respectively, were recorded in interest expense. When the Company’s debt is modified or terminated prior to maturity, 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 “debt termination expense”. In 2021 and 2020, the Company recorded write-offs of unamortized debt issuance costs and bond discounts of $4,578 and $8,750, respectively (see Note 8 “Debt”). No unamortized debt issuance costs were written-off during the year ended December 31, 2019. |
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 2021, 2020 and 2019, $5,024 or 21%, $15,225 or 28%, and $10,527 or 23%, respectively, of the Company’s direct container expenses – owned fleet were paid in 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. 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, 2021, 2020 and 2019, and more than 10% of the Company’s gross accounts receivable from its total fleet as of December 31, 2021 and 2020: Lease Rental Income - total fleet 2021 2020 2019 Customer A 21.0 % 17.8 % 14.8 % Customer B 12.2 % 13.1 % 13.5 % Customer C 12.1 % 9.7 % 8.7 % Gross Accounts Receivable - total fleet 2021 2020 Customer A 24.7 % 25.3 % Customer B 13.9 % 12.6 % Customer C 11.3 % 19.1 % |
Derivative Instruments and Hedging | ( p ) Derivative Instruments and Hedging The Company has entered into various interest rate swap 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”) or the Secured Overnight Financing Rate (“SOFR”), which is the Company’s replacement rate due to LIBOR transition. 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. Derivative instruments are designated or non-designated for hedge accounting purposes (see Note 9 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 change in fair value of derivative instruments is initially reported in the consolidated balance sheets as a component of “accumulated other comprehensive income” and reclassified to earnings in “interest expense, net” when realized or when hedged interest payments are recognized. Non-Designated Derivative Instruments For derivative instruments that are not designated as cash flow hedge for accounting purposes, the change in fair value of derivative instruments is recognized in earnings during the period of change which is recorded in the consolidated statements of operations as “unrealized gain (loss) on financial instruments, net.” differentials |
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 3.4%, 3.5 % and 3.4 % as of December 31, 2021, 2020 and 2019, respectively. Share-based compensation expense of $6,699, $4,723 and $4,388 was recorded during 2021, 2020 and 2019, respectively, of which $6,470, $4,257 and $3,780 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, containers held for sale, allowance for credit losses, 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 Common Shareholders Per Common Share | ( t ) Net Income Attributable to Common Shareholders Per Common Share Basic earnings per share (“EPS”) is computed by dividing net income attributable to 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 2021, 2020 and 2019 is presented as follows: Share amounts in thousands 2021 2020 2019 Numerator: Net income attributable to common shareholders $ 273,459 $ 72,822 $ 56,724 Denominator: Weighted average common shares outstanding-- basic 49,624 53,271 57,349 Dilutive share options, RSUs and PSUs 952 210 110 Weighted average common shares outstanding-- diluted 50,576 53,481 57,459 Net income attributable to common shareholders per common share Basic $ 5.51 $ 1.37 $ 0.99 Diluted $ 5.41 $ 1.36 $ 0.99 Share options, RSUs and PSUs excluded from the computation of diluted EPS because they were anti-dilutive 334 1,674 1,805 |
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, 2021 and 2020, 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 Fair Value of Marketable Equity Securities As of December 31, 2021, the Company held investments in marketable equity securities with readily determinable fair values of $2,866 (see Note 2 “Insurance Receivable and Impairment”). The fair value of investments in equity securities is measured at each balance sheet date based on quoted market prices (Level 1) and the change in fair value of marketable securities still held as of December 31, 2021 was $(589) during the year ended December 31, 2021, which was included as “unrealized gain (loss) on financial instruments, net” in the consolidated statements of operations. There were no marketable equity securities as of December 31, 2020. Fair Value of Other Assets and Liabilities At December 31, 2021 and 2020, the fair value of net investment in finance leases (including the short-term balance) was approximately $1,810,712 and $856,392, respectively, compared to book values of $1,806,090 and $879,960, respectively. At December 31, 2021 and 2020, the fair value of container leaseback financing receivable (including the short-term balance) was approximately $357,828 and $363,774, respectively, compared to book values of $354,147 and $363,868, respectively. At December 31, 2021 and 2020, the fair value of long-term debt (including current maturities) based on the borrowing rates available to the Company was approximately $5,320,366 and $4,144,332, respectively, compared to book values of $5,340,521 and $4,115,344, 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’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. See Note 5 “Leases” for further discussion. In July 2021, the FASB issued Accounting Standards Update No. 2021-05, Leases (Topic 842), Lessors – Certain Leases with Variable Lease Payments ASU 2021-05 requires a lessor to classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: 1) The lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in Topic 842; and 2) The lessor would have otherwise recognized a day-one loss. ASU 2021-05 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company will adopt ASU 2021-05 effective January 1, 2022 on a prospective basis and expects no impact on the Company’s consolidated financial statements. |
Reclassifications and Changes in Presentation | ( w ) Reclassifications and Changes in Presentation Certain prior period amounts for the years ended December 31, 2020 and 2019 have been reclassified to conform to the current period presentation. The Company reclassified the amounts out of the separate line items “fixed assets, net of accumulated depreciation” and “intangible assets, net of accumulated amortization” to be included within the line item “other assets” in the consolidated balance sheets. The Company reclassified the amounts out of the previously reported line item “write-off of unamortized debt issuance costs and bond discounts” to the line item “debt termination expense” in the consolidated statements of operations. Additionally, amounts for write-off of unamortized debt issuance costs and bond discounts were reclassified out of the previously reported line item “amortization and write-off of unamortized debt issuance costs and accretion of bond discounts” to be included within the line item “debt termination expense” in the consolidated statements of cash flows. The changes in the presentation have no impact on “total assets” , “net income” and “net increase (decrease) in cash, cash equivalents and restricted cash”. |
Recently Issued Accounting Standards and Pronouncements | ( x ) 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. In August 2020, the FASB issued Accounting Standards Update No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). The new guidance simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separately present certain conversion features in equity. In addition, ASU 2020-06 amends the derivative scope exception for contracts in an entity’s own equity by removing certain criteria that must be satisfied in order to classify a contract as equity. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. Effective January 1, 2021 2020-06 using the modified retrospective approach with no impact on the Company’s consolidated financial statements. |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020 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, 2021 and 2020 were as follows: 2021 2020 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Dry containers other than open top and flat rack containers: 20' $ 1,530,464 $ (471,549 ) $ 1,058,915 $ 1,532,753 $ (428,913 ) $ 1,103,840 40' 141,292 (55,448 ) 85,844 144,881 (55,154 ) 89,727 40' high cube 3,496,469 (791,349 ) 2,705,120 2,717,384 (672,416 ) 2,044,968 45' high cube 27,354 (13,871 ) 13,483 27,880 (12,747 ) 15,133 Refrigerated containers: 20' 18,445 (8,899 ) 9,546 20,164 (8,493 ) 11,671 20' high cube 809 (606 ) 203 2,605 (1,742 ) 863 40' high cube 1,163,149 (462,645 ) 700,504 1,103,817 (398,721 ) 705,096 Open top and flat rack containers: 20' folding flat 16,206 (5,291 ) 10,915 17,228 (5,132 ) 12,096 40' folding flat 47,739 (19,073 ) 28,666 49,167 (18,275 ) 30,892 20' open top 13,046 (2,090 ) 10,956 13,253 (1,790 ) 11,463 40' open top 21,394 (4,827 ) 16,567 22,271 (4,738 ) 17,533 Tank containers 107,175 (16,016 ) 91,159 93,240 (11,470 ) 81,770 Total Containers $ 6,583,542 $ (1,851,664 ) $ 4,731,878 $ 5,744,643 $ (1,619,591 ) $ 4,125,052 |
Net Gain on Sale of Owned Fleet Containers | During the years ended December 31, 2021, 2020 and 2019, 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: 2021 2020 2019 Units Amount Units Amount Units Amount Gain on sale of previously written down owned fleet containers, net 3,430 $ 2,165 51,541 $ 15,451 52,319 $ 6,665 Gain on sale of owned fleet containers not written down, net 50,550 65,064 54,807 11,779 52,126 14,732 Gain on sale of owned fleet containers, net 53,980 $ 67,229 106,348 $ 27,230 104,445 $ 21,397 |
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, 2021, 2020 and 2019, and more than 10% of the Company’s gross accounts receivable from its total fleet as of December 31, 2021 and 2020: Lease Rental Income - total fleet 2021 2020 2019 Customer A 21.0 % 17.8 % 14.8 % Customer B 12.2 % 13.1 % 13.5 % Customer C 12.1 % 9.7 % 8.7 % |
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 2021, 2020 and 2019 is presented as follows: Share amounts in thousands 2021 2020 2019 Numerator: Net income attributable to common shareholders $ 273,459 $ 72,822 $ 56,724 Denominator: Weighted average common shares outstanding-- basic 49,624 53,271 57,349 Dilutive share options, RSUs and PSUs 952 210 110 Weighted average common shares outstanding-- diluted 50,576 53,481 57,459 Net income attributable to common shareholders per common share Basic $ 5.51 $ 1.37 $ 0.99 Diluted $ 5.41 $ 1.36 $ 0.99 Share options, RSUs and PSUs excluded from the computation of diluted EPS because they were anti-dilutive 334 1,674 1,805 |
Accounts Receivable | |
Schedule of Concentration Risk of Total Fleet Lease Rental Income | Gross Accounts Receivable - total fleet 2021 2020 Customer A 24.7 % 25.3 % Customer B 13.9 % 12.6 % Customer C 11.3 % 19.1 % |
Managed Container Fleet (Tables
Managed Container Fleet (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Company's Leasing Equipment | The Company’s container leasing equipment includes such managed containers in the consolidated balance sheets as of December 31, 2021 and 2020, which consisted of the following: 2021 2020 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Containers - owned fleet $ 6,566,785 $ (1,850,721 ) $ 4,716,064 $ 5,740,717 $ (1,619,304 ) $ 4,121,413 Containers - managed fleet 16,757 (943 ) 15,814 3,926 (287 ) 3,639 Total containers $ 6,583,542 $ (1,851,664 ) $ 4,731,878 $ 5,744,643 $ (1,619,591 ) $ 4,125,052 |
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 2021, 2020 and 2019 were as follows (also, see Note 4 “Transactions with Affiliates and Container Investors”): 2021 2020 2019 Lease rental income - managed fleet $ 56,037 $ 62,448 $ 101,901 Less: distribution expense to managed fleet container investors (50,360 ) (57,311 ) (93,858 ) Less: depreciation and interest expense on managed containers purchased on or after January 1, 2019 (1,348 ) (730 ) (394 ) Management fees from leasing 4,329 4,407 7,649 Management fees from non-leasing services 3,360 5,271 7,590 Total management fees $ 7,689 $ 9,678 $ 15,239 |
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, 2021 and 2020 in the consolidated balance sheets 2021 2020 Accounts receivable, net - owned fleet $ 118,107 $ 97,950 Accounts receivable, net - managed fleet 7,639 10,628 Total accounts receivable, net $ 125,746 $ 108,578 Prepaid expenses and other current assets - owned fleet $ 14,142 $ 13,614 Prepaid expenses and other current assets - managed fleet 42 99 Total prepaid expenses and other current assets $ 14,184 $ 13,713 Accounts payable and accrued expenses - owned fleet $ 21,736 $ 23,198 Accounts payable and accrued expenses - managed fleet 375 1,187 Total accounts payable and accrued expenses $ 22,111 $ 24,385 Container contracts payable - owned fleet $ 140,968 $ 231,647 Total container contracts payable $ 140,968 $ 231,647 |
Transactions with Affiliates _2
Transactions with Affiliates and Container Investors (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 2021, 2020 and 2019 were as follows: 2021 2020 2019 Fees from affiliated Container Investors $ — $ — $ 3,527 Fees from unaffiliated Container Investors 7,689 9,678 11,374 Fees from Container Investors 7,689 9,678 14,901 Other fees — — 338 Total management fees $ 7,689 $ 9,678 $ 15,239 |
Summary of Due to Container Investors, Net | The following table provides a summary of due to container investors, net at December 31, 2021 and 2020: 2021 2020 Accounts receivable, net - managed fleet $ 7,639 $ 10,628 Prepaid expenses and other current assets - managed fleet 42 99 Accounts payable and accrued expenses - managed fleet (375 ) (1,187 ) 7,306 9,540 Distributions due to container investors on lease rentals collected, net of container expenses paid and management fees 10,679 9,157 Due to container investors, net $ 17,985 $ 18,697 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Rental Income | The Company’s lease rental income during 2021, 2020 and 2019 were as follows: 2021 2020 2019 Owned Managed Total Owned Managed Total Owned Managed Total Lease rental income - operating leases $ 577,946 $ 54,652 $ 632,598 $ 469,109 $ 58,175 $ 527,284 $ 470,722 $ 96,227 $ 566,949 Interest income on net investment in finance leases 82,659 — 82,659 30,121 — 30,121 15,356 — 15,356 Interest income on container leaseback financing receivable 21,380 — 21,380 17,243 — 17,243 10,313 — 10,313 Variable lease revenue 12,708 1,385 14,093 21,952 4,273 26,225 21,468 5,674 27,142 Total lease rental income $ 694,693 $ 56,037 $ 750,730 $ 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, 2021: Owned Managed Total Year ending December 31: 2022 446,284 29,946 476,230 2023 400,845 26,955 427,800 2024 332,978 23,508 356,486 2025 258,530 18,888 277,418 2026 187,451 13,976 201,427 2027 and thereafter 364,757 15,824 380,581 Total future minimum lease payments receivable $ 1,990,845 $ 129,097 $ 2,119,942 |
Schedule of Components of Container Leaseback Financing Receivable | The following table represents the components of the container leaseback financing receivable as of December 31, 2021 and 2020: 2021 2020 Future minimum payments receivable $ 483,325 $ 505,473 Less: unearned income (129,065 ) (141,181 ) Container leaseback financing receivable (1) 354,260 364,292 Less: Allowance for credit losses (113 ) (424 ) Container leaseback financing receivable, net $ 354,147 $ 363,868 Amounts due within one year 30,317 27,076 Amounts due beyond one year 323,830 336,792 Container leaseback financing receivable, net $ 354,147 $ 363,868 (1) One major customer represented 90.6% and 89.7% of the Company’s container leaseback financing receivable portfolio as of December 31, 2021 and 2020, respectively. As of December 31, 2020, one other customer represented 10.3% 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, 2021 and 2020: 2021 2020 Future minimum lease payments receivable $ 2,558,339 $ 1,216,086 Residual value of containers 16,532 12,601 Less: unearned income (768,038 ) (347,394 ) Net investment in finance leases (1) $ 1,806,833 $ 881,293 Less: Allowance for credit losses (743 ) (1,333 ) Net investment in finance leases, net $ 1,806,090 $ 879,960 Amounts due within one year $ 113,048 $ 78,459 Amounts due beyond one year 1,693,042 801,501 Net investment in finance leases, net $ 1,806,090 $ 879,960 (1) One major customer represented 85.1% and 80.1% of the Company’s finance lease portfolio as of December 31, 2021 and 2020, respectively. No other customer represented more than 10% of the Company’s finance leases portfolio in each of those periods. |
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, 2021: Year ending December 31: Container Leaseback Financing Receivable Net Investment in Finance Leases Total 2022 $ 50,515 $ 215,431 $ 265,946 2023 50,514 205,192 255,706 2024 46,427 201,925 248,352 2025 39,015 196,225 235,240 2026 37,524 198,151 235,675 2027 and thereafter 259,330 1,541,415 1,800,745 Total future minimum lease payments receivable $ 483,325 $ 2,558,339 $ 3,041,664 |
Schedule of Rent Expense and Other Information Related to Operating Leases | Rent expense and other information related to the Company's operating leases during 2021, 2020 and 2019 are as follows: 2021 2020 2019 Operating lease cost $ 2,103 $ 2,103 $ 2,095 Short-term and variable lease cost 112 128 138 Total rent expense $ 2,215 $ 2,231 $ 2,233 Cash paid for amounts included in the measurement of lease liabilities $ 2,379 $ 2,221 $ 2,098 |
Minimum Lease Payment under Noncancelable Operating Leases | Future minimum lease payment obligations under the Company’s noncancelable operating leases at December 31, 2021 were as follows: Operating leasing Year ending December 31: 2022 2,271 2023 2,417 2024 2,397 2025 2,130 2026 2,179 2027 and thereafter 935 Total minimum lease payments 12,329 Less imputed interest (1,285 ) Total present value of operating lease liabilities $ 11,044 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021: Year Ended December 31, 2021 2020 2019 2018 2017 Prior Total Tier 1 $ 859,924 $ 594,567 $ 105,141 $ 33,410 $ 6,864 $ 9,500 $ 1,609,406 Tier 2 86,117 37,232 33,959 18,612 5 4,910 180,835 Tier 3 7,712 2,347 5,855 535 — 143 16,592 Net investment in finance leases $ 953,753 $ 634,146 $ 144,955 $ 52,557 $ 6,869 $ 14,553 $ 1,806,833 Tier 1 $ 12,108 $ 107,758 $ 201,114 $ — $ — $ — $ 320,980 Tier 2 5,290 — 27,990 — — — 33,280 Container leaseback financing receivable $ 17,398 $ 107,758 $ 229,104 $ — $ — $ — $ 354,260 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 (benefit) for 2021, 2020 and 2019 consisted of the following: 2021 2020 2019 Current Bermuda $ — $ — $ — Foreign 594 446 499 594 446 499 Deferred Bermuda — — — Foreign 1,179 (819 ) 1,449 1,179 (819 ) 1,449 $ 1,773 $ (374 ) $ 1,948 |
Components of Income Before Income Taxes and Noncontrolling Interest | The components of income before income taxes and noncontrolling interest were as follows: 2021 2020 2019 Bermuda sources $ — $ — $ — Foreign sources 286,061 73,299 58,504 $ 286,061 $ 73,299 $ 58,504 |
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: 2021 2020 2019 Bermuda tax rate $ — 0.00 % $ — 0.00 % $ — 0.00 % Foreign tax rate 271 0.09 % (1,291 ) (1.76 )% 188 0.32 % Tax uncertainties 1,502 0.53 % 917 1.25 % 1,760 3.01 % $ 1,773 0.62 % $ (374 ) (0.51 )% $ 1,948 3.33 % The components of income tax expense and effective tax rate were as follows: 2021 2020 2019 Income before income tax and noncontrolling interests $ 286,061 $ 73,299 $ 58,504 Tax uncertainties $ 1,502 0.53 % $ 917 1.25 % $ 1,760 3.01 % Foreign taxes Stock base compensation (622 ) (0.22 )% (94 ) (0.13 )% 390 0.67 % 162(m) officers' compensation 412 0.14 % 102 0.14 % 15 0.03 % Adjustment for prior years (392 ) (0.14 )% 47 0.06 % 270 0.46 % Foreign derived intangible income (329 ) (0.12 )% (112 ) (0.15 )% (77 ) (0.13 )% Valuation allowance (382 ) (0.13 )% 67 0.09 % 315 0.54 % Foreign rate difference 1,583 0.55 % (1,333 ) (1.82 )% (778 ) (1.33 )% Other 1 0.00 % 32 0.04 % 53 0.09 % 271 0.09 % (1,291 ) (1.76 )% 188 0.32 % $ 1,773 0.62 % $ (374 ) (0.51 )% $ 1,948 3.33 % |
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, 2021 and 2020 are presented below: 2021 2020 Deferred tax assets Net operating loss carryforwards $ 17,765 $ 19,284 Other 1,006 1,457 18,771 20,741 Valuation allowance — (382 ) Deferred tax assets 18,771 20,359 Deferred tax liabilities Containers, net 25,287 25,043 Other — 654 Deferred tax liabilities 25,287 25,697 Net deferred tax liabilities $ 6,516 $ 5,338 |
Reconciliation of Beginning and Ending Unrecognized Tax Benefit Amount | A reconciliation of the beginning and ending unrecognized tax benefit amounts for 2021 and 2020 are as follows: 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 Increases related to prior year tax positions 156 Increases related to current year tax positions 2,878 Lapse of statute of limitations (1,457 ) Balance at December 31, 2021 $ 22,152 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Obligation | The following represents the Company’s debt obligations as of December 31, 2021 and 2020: Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable 2021 2020 Outstanding Average Interest Outstanding Average Interest Final Maturity TL Revolving Credit Facility $ 1,059,950 1.60 % $ 1,433,919 1.65 % September 2023 TL 2019 Term Loan 137,513 3.50 % 148,131 3.50 % December 2026 TL 2021-1 Term loan 65,131 2.65 % — 0.00 % February 2028 TL 2021-2 Term Loan 204,712 2.90 % — 0.00 % October 2028 TMCL II Secured Debt Facility (1) 1,067,886 1.75 % 646,551 1.91 % November 2028 TMCL VI Term Loan — 0.00 % 223,630 4.29 % — TMCL VII 2019-1 Bonds — 0.00 % 300,305 4.02 % — TMCL VII 2020-1 Bonds 384,611 3.07 % 429,600 3.07 % August 2045 TMCL VII 2020-2 Bonds 530,565 2.26 % 587,183 2.26 % September 2045 TMCL VII 2020-3 Bonds 194,414 2.15 % 214,168 2.15 % September 2045 TMCL VII 2021-1 Bonds 508,024 1.72 % — 0.00 % February 2046 TMCL VII 2021-2 Bonds 610,111 2.27 % — 0.00 % April 2046 TMCL VII 2021-3 Bonds 577,603 1.98 % — 0.00 % August 2046 TAP Funding Revolving Credit Facility — 0.00 % 131,857 2.11 % — Total debt obligations $ 5,340,520 $ 4,115,344 Amount due within one year $ 380,207 $ 408,365 Amounts due beyond one year $ 4,960,313 $ 3,706,979 (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, 2021: Twelve months ending December 31, Available borrowing, Current and Available Borrowing, 2022 2023 2024 2025 2026 2027 and thereafter Total Borrowing as limited by the Borrowing Base as limited by the Borrowing Base TL Revolving Credit Facility $ — $ 1,062,858 $ — $ — $ — $ — $ 1,062,858 $ 299,494 $ 1,362,352 TL 2019 Term Loan 11,285 11,686 12,102 12,532 90,973 — 138,578 — 138,578 TL 2021-1 Term loan 5,490 5,637 5,789 5,944 6,103 36,841 65,804 — 65,804 TL 2021-2 Term Loan 14,434 14,858 15,294 15,743 16,205 130,101 206,635 — 206,635 TMCL II Secured Debt Facility (1) 75,345 69,210 70,628 82,028 74,191 702,339 1,073,741 — 1,073,741 TMCL VII 2020-1 Bonds (2) 56,921 57,675 58,419 57,411 51,728 106,040 388,194 — 388,194 TMCL VII 2020-2 Bonds (2) 61,149 66,779 69,345 69,631 68,296 200,490 535,690 — 535,690 TMCL VII 2020-3 Bonds (2) 20,111 20,111 20,111 20,111 20,111 95,306 195,861 — 195,861 TMCL VII 2021-1 Bonds (2) 44,000 44,000 44,000 44,000 44,000 293,333 513,333 — 513,333 TMCL VII 2021-2 Bonds (2) 52,096 52,096 52,096 52,096 52,096 355,989 616,469 — 616,469 TMCL VII 2021-3 Bonds (2) 48,000 48,000 48,000 48,000 48,000 344,000 584,000 — 584,000 Total (3) $ 388,831 $ 1,452,910 $ 395,784 $ 407,496 $ 471,703 $ 2,264,439 $ 5,381,163 $ 299,494 $ 5,680,657 (1) The estimated future scheduled repayments for TMCL II Secured Debt Facility are based on the assumption that the facility will not be extended on its associated conversion date. ( 2 ) Future scheduled payments for all bonds payable exclude unamortized discounts in an aggregate amount of $613. ( 3 ) Future scheduled payments for all debts exclude prepaid debt issuance costs in an aggregate amount of $40,030. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instrument Detail [Abstract] | |
Notional Amount and Fair Value of Derivative Instruments | The following table summarizes the fair value of derivative instruments, which are inclusive of counterparty risk, on the consolidated balance sheets 2021 2020 Assets Interest rate swaps - designated as hedges $ 12,278 $ 47 Total $ 12,278 $ 47 Liabilities Interest rate swaps - designated as hedges $ 2,139 $ 9,665 Interest rate swaps - not designated as hedges — 19,570 Total $ 2,139 $ 29,235 |
Summary of Derivative Instruments | The following table summarizes the Company’s derivative instruments , which were all designated as cash flow hedges as of December 31, 2021: Notional Derivative instruments amount Interest rate swap contracts with several banks that were indexed to one-month LIBOR, with fixed rates between 0.17% and 1.28% per annum, amortizing notional amounts, with termination dates through May 30, 2031 $ 856,250 Interest rate swap contracts with several banks that were indexed to daily SOFR, with fixed rates between 0.36% and 1.48% per annum, amortizing notional amounts, with termination dates through March 17, 2031 (1) 868,000 Total notional amount as of December 31, 2021 $ 1,724,250 (1) In November 2021, the Company amended certain interest rate swap contracts which were related to the replacement of LIBOR to SOFR due to the reference rate reform. |
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, 2021, 2020 and 2019: 2021 2020 2019 Derivative instruments Financial Statement Caption Non-designated Realized (loss) gain on financial instruments, net $ (5,408 ) $ (12,295 ) $ 1,939 Non-designated Unrealized gain (loss) on financial instruments, net $ 5,220 $ (6,044 ) $ (15,442 ) Designated Other comprehensive income (loss) $ 10,986 $ (12,307 ) $ (110 ) Designated Interest expense, net $ (8,771 ) $ (2,806 ) $ 7 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | The following tables show segment information for 2021, 2020 and 2019: Container Container Container 2021 Ownership Management Resale Other Eliminations Totals Lease rental income - owned fleet $ 694,045 $ 648 $ — $ — $ — $ 694,693 Lease rental income - managed fleet — 56,037 — — — 56,037 Lease rental income $ 694,045 $ 56,685 $ — $ — $ — $ 750,730 Management fees - non-leasing from external customers $ — $ 373 $ 2,987 $ — $ — $ 3,360 Inter-segment management fees $ — $ 83,074 $ 9,954 $ — $ (93,028 ) $ — Trading container margin $ — $ — $ 10,760 $ — $ — $ 10,760 Gain on sale of owned fleet containers, net $ 67,229 $ — $ — $ — $ — $ 67,229 Depreciation expense $ 289,610 $ 1,110 $ — $ — $ (9,145 ) $ 281,575 Container lessee default recovery, net $ 1,088 $ — $ — $ — $ — $ 1,088 Interest expense $ 126,628 $ 641 $ — $ — $ — $ 127,269 Debt termination expense $ 15,209 $ — $ — $ — $ — $ 15,209 Realized loss on financial instruments, net $ 5,408 $ 226 $ — $ — $ — $ 5,634 Unrealized gain (loss) on financial instruments, net $ 5,220 $ (811 ) $ — $ — $ — $ 4,409 Segment income (loss) before income tax (1) $ 239,857 $ 46,706 $ 19,166 $ (4,845 ) $ (14,823 ) $ 286,061 Income tax expense $ 1,404 $ 369 $ — $ — $ — $ 1,773 Total assets $ 7,269,451 $ 230,810 $ 15,819 $ 12,644 $ (161,280 ) $ 7,367,444 Purchase of containers and fixed assets $ 1,991,898 $ 1,242 $ — $ — $ — $ 1,993,140 Payments on container leaseback financing receivable $ 18,705 $ — $ — $ — $ — $ 18,705 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 Debt termination expense $ 8,750 $ — $ — $ — $ — $ 8,750 Realized loss on financial instruments, net $ 12,295 $ — $ — $ — $ — $ 12,295 Unrealized loss on financial 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 Income tax benefit (expense) $ 1,088 $ (714 ) $ — $ — $ — $ 374 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 financial instruments, net $ 1,946 $ — $ — $ — $ — $ 1,946 Unrealized loss on financial 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 Income tax expense $ 1,086 $ 862 $ — $ — $ — $ 1,948 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 (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized gain (loss) on financial instruments, net of $4,409, $(6,044) and $(15,442) for the years ended December 31, 2021, 2020 and 2019, respectively, and debt termination expense of $15,209, $8,750 and $0 for the years ended December 31, 2021, 2020 and 2019, 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, 2021, 2020 and 2019 based on customers’ and Container Investors’ primary domicile: Years ended December 31, 2021 Percent of Total 2020 Percent of Total 2019 Percent of Total Lease rental income: Asia $ 373,614 49.8 % $ 302,709 50.4 % $ 329,567 53.2 % Europe 343,351 45.7 % 266,431 44.3 % 255,495 41.2 % North / South America 32,296 4.3 % 29,391 4.9 % 31,786 5.1 % Bermuda — — — — — — All other international 1,469 0.2 % 2,342 0.4 % 2,912 0.5 % $ 750,730 100.0 % $ 600,873 100.0 % $ 619,760 100.0 % Management fees, non-leasing: Bermuda $ 1,699 50.6 % $ 2,797 53.1 % $ 4,576 60.2 % Europe 1,530 45.5 % 2,397 45.5 % 2,334 30.8 % Asia 45 1.3 % 11 0.2 % 28 0.4 % North / South America 23 0.7 % 9 0.2 % 342 4.5 % All other international 63 1.9 % 57 1.0 % 310 4.1 % $ 3,360 100.0 % $ 5,271 100.0 % $ 7,590 100.0 % |
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, 2021, 2020 and 2019 based on the location of sale: Years ended December 31, 2021 Percent of Total 2020 Percent of Total 2019 Percent of Total Trading container sales proceeds: Asia $ 14,317 44.7 % $ 14,896 46.6 % $ 39,519 67.3 % North / South America 12,404 38.7 % 13,045 40.9 % 12,788 21.8 % Europe 5,321 16.6 % 3,991 12.5 % 6,411 10.9 % Bermuda — — — — — — All other international 3 0.0 % 9 0.0 % 16 0.0 % $ 32,045 100.0 % $ 31,941 100.0 % $ 58,734 100.0 % Gain on sale of owned fleet containers, net: Asia $ 46,328 68.9 % $ 13,082 48.1 % $ 7,714 36.0 % Europe 10,516 15.7 % 5,538 20.3 % 5,577 26.1 % North / South America 10,385 15.4 % 8,610 31.6 % 6,809 31.8 % Bermuda — — — — — — All other international — — — — 1,297 6.1 % $ 67,229 100.0 % $ 27,230 100.0 % $ 21,397 100.0 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020 consisted of the following: 2021 2020 Trust accounts $ 16,289 $ 17,054 Other restricted cash accounts 60,073 57,093 Total restricted cash $ 76,362 $ 74,147 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 for the years ended December 31, 2021, 2020, and 2019: Share options (common share equivalents) Weighted average exercise price 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 exercised during the period (477,103 ) $ 18.95 Options expired during the period (40,000 ) $ 32.70 Options forfeited during the period (19,128 ) $ 10.74 Balances, December 31, 2021 992,795 20.02 Options exercisable at December 31, 2021 833,186 $ 21.98 Options vested and expected to vest at December 31, 2021 986,011 $ 20.09 |
Fair Value of Stock Option/PSU Awards Granted Assumptions Used | The Company did not grant any stock options during the years ended December 31, 2021 and 2020. The estimated weighted average grant date fair value of share options granted during 2019 was $4.47 per share, and was estimated using the Black-Scholes option pricing model for the year ended December 31, 2019 with the following assumptions.: 2019 Risk-free interest rates 1.7 % Expected terms (in years) 5.5 Expected common share price volatilities 52.9 % Expected dividends 0.0 % Expected forfeitures 3.4 % There were no PSU awards PSU awards 2021 2020 Risk-free interest rates 0.54 % 0.16 % Expected common share price volatilities 59.80 % 57.40 % Expected dividends 0.0 % 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 for the years ended December 31, 2021, 2020, and 2019: RSU PSU (1) Total Weighted average grant date fair value Balances, December 31, 2018 640,750 — 640,750 $ 14.20 Share units granted during the period 309,192 — 309,192 $ 9.20 Share units vested during the period (281,377 ) — (281,377 ) $ 13.97 Share units forfeited during the period (10,945 ) — (10,945 ) $ 14.32 Balances, December 31, 2019 657,620 — 657,620 $ 11.95 Share units granted during the period 200,868 183,560 384,428 $ 16.96 Share units vested during the period (300,404 ) — (300,404 ) $ 12.08 Share units forfeited during the period (19,743 ) — (19,743 ) $ 12.62 Balances, December 31, 2020 538,341 183,560 721,901 $ 14.55 Share units granted during the period 102,956 104,834 207,790 $ 44.62 Share units vested during the period (2) (278,684 ) (7,004 ) (285,688 ) $ 12.32 Share units forfeited during the period (18,753 ) — (18,753 ) $ 12.70 Balances, December 31, 2021 343,860 281,390 625,250 $ 25.37 Total share units outstanding and expected to vest at December 31, 2021 590,615 $ 25.12 (1) The grant date fair value of PSU awards granted during 2021 and 2020 were $55.85 per share and $22.06 per share, respectively. On the settlement date for each measurement period of market-based awards, grantees may receive shares equal to 0% to 200% of the three-year (2) As of December 31, 2021, an incremental fair value expense of $577 was recognized for certain awards that were modified to accelerate vesting upon retirement. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Summary of Company's Board of Directors Approved and Declared Quarterly Cash Dividends | The Company’s board of directors approved and declared the following quarterly cash dividends during the year ended December 31, 2021 on its issued and outstanding preferred shares: Series A Preferred Shares Series B Preferred Shares Record Date Payment Date Aggregate Payment Per Depositary Share Payment (1) Aggregate Payment Per Depositary Share Payment (1) May 31, 2021 June 15, 2021 $ 1,808 $ 0.30 — — August 31, 2021 September 15, 2021 $ 2,625 $ 0.44 — — December 3, 2021 December 15, 2021 $ 2,625 $ 0.44 $ 2,917 $ 0.49 (1) Rounded to the nearest whole cent. |
Nature of Business and Summar_4
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail) | Jan. 01, 2021USD ($) | Jan. 31, 2021USD ($) | Dec. 31, 2022USD ($) | Dec. 31, 2021USD ($)LesseeLease | Dec. 31, 2020USD ($)LesseeLease | Dec. 31, 2019USD ($)Lessee | Feb. 01, 2021 |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||
Total purchase price consideration | $ 21,500,000 | ||||||
Noncontrolling interest | 0 | $ 27,110,000 | |||||
Less: Net income (loss) attributable to the noncontrolling interest | 0 | 851,000 | $ (168,000) | ||||
Gain on settlement of pre-existing management agreement | 1,823,000 | ||||||
Write-off intangible assets from the relinquishment of management rights | 551,000 | 0 | |||||
Amortization expense | 2,540,000 | 2,572,000 | 2,093,000 | ||||
Foreign currency exchange losses | 195,000 | 251,000 | 393,000 | ||||
Gains (losses) due to changes in exchange rates from remeasurement | (524,000) | 654,000 | 0 | ||||
Fixed assets | 1,585,000 | 746,000 | |||||
Fixed assets, net of accumulated depreciation | $ 13,296,000 | 12,918,000 | |||||
Period of amortization of capitalized implementation costs | 7 years | ||||||
Minimum likelihood of tax benefits being recognized | 50.00% | ||||||
Debt issuance cost | $ 27,895,000 | 13,637,000 | 9,417,000 | ||||
Amortization of debt issuance costs | 9,723,000 | 7,712,000 | 7,369,000 | ||||
Write-offs of unamortized debt issuance costs and bond discounts | 4,578,000 | 8,750,000 | 0 | ||||
Direct container expenses paid in various foreign currencies | $ 5,024,000 | $ 15,225,000 | $ 10,527,000 | ||||
Percentage of direct container expenses paid in various foreign currencies | 21.00% | 28.00% | 23.00% | ||||
Expected forfeiture rate | 3.40% | 3.50% | 3.40% | ||||
Share-based compensation expense | $ 6,699,000 | $ 4,723,000 | $ 4,388,000 | ||||
Investments in marketable equity securities with readily determinable fair values | 2,866,000 | 0 | |||||
Unrealized gain (loss) on financial instruments, net | (589,000) | ||||||
Fair value of net investment in direct financing and sales-type leases | 1,810,712,000 | 856,392,000 | |||||
Net investment in direct financing and sales-type leases | 1,806,090,000 | 879,960,000 | |||||
Fair value of container leaseback financing receivable | 357,828,000 | 363,774,000 | |||||
Net of container leaseback financing receivable | 354,147,000 | 363,868,000 | |||||
Fair value of long-term debt | 5,320,366,000 | 4,144,332,000 | |||||
Long-term debt | 5,340,521,000 | 4,115,344,000 | |||||
General and Administrative Expenses | |||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||
Share-based compensation expense | $ 6,470,000 | $ 4,257,000 | $ 3,780,000 | ||||
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 | |||||
Containers held for sale | Fair Value, Inputs, Level 2 | |||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||
Assets measured at fair value on non-recurring basis | $ 270,000 | $ 5,845,000 | |||||
Insolvent Customer | |||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||
Gain on container recovery | 7,577,000 | 1,644,000 | |||||
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 | 2,793,000 | 0 | 9,167,000 | ||||
Gain on container recovery | 7,662,000 | 1,647,000 | 1,988,000 | ||||
Containers for Sale | |||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||
Container impairment charges (reversals) to write down value, held for sale, net of reversals | (385,000) | 11,094,000 | 14,238,000 | ||||
Other Assets | |||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||
Intangible assets | 178,000 | 2,719,000 | |||||
Intangible assets, net of accumulated amortization | 42,002,000 | 47,931,000 | |||||
Prepaid Expenses and Other Current Assets | |||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||
Capitalized implementation costs | $ 8,767,000 | $ 4,212,000 | |||||
Forecast | |||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||
Amortization expense | $ 178,000 | ||||||
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 | ||||||
Maximum [Member] | |||||||
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 | ||||||
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 TAP Funding Ltd. | 50.10% | ||||||
Tap Funding Limited | |||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||
Ownership percentage in TAP Funding Ltd. | 49.90% | 49.90% | 100.00% | ||||
Total purchase price consideration | $ 21,500,000 | ||||||
Increase in additional paid-in capital | $ 7,022,000 |
Estimated Useful Lives and Resi
Estimated Useful Lives and Residual Value of Containers (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 6,583,542 | $ 5,744,643 |
Accumulated Depreciation | (1,851,664) | (1,619,591) |
Net Book Value | 4,731,878 | 4,125,052 |
Dry Containers Other Than Open Top And Flat Rack Containers, 20' | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,530,464 | 1,532,753 |
Accumulated Depreciation | (471,549) | (428,913) |
Net Book Value | 1,058,915 | 1,103,840 |
Dry Containers Other Than Open Top And Flat Rack Containers, 40' | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 141,292 | 144,881 |
Accumulated Depreciation | (55,448) | (55,154) |
Net Book Value | 85,844 | 89,727 |
Dry Containers Other Than Open Top And Flat Rack Containers, 40' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 3,496,469 | 2,717,384 |
Accumulated Depreciation | (791,349) | (672,416) |
Net Book Value | 2,705,120 | 2,044,968 |
Dry Containers Other Than Open Top And Flat Rack Containers, 45' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 27,354 | 27,880 |
Accumulated Depreciation | (13,871) | (12,747) |
Net Book Value | 13,483 | 15,133 |
Refrigerated Containers, 20' | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 18,445 | 20,164 |
Accumulated Depreciation | (8,899) | (8,493) |
Net Book Value | 9,546 | 11,671 |
Refrigerated Containers, 20' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 809 | 2,605 |
Accumulated Depreciation | (606) | (1,742) |
Net Book Value | 203 | 863 |
Refrigerated Containers, 40' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,163,149 | 1,103,817 |
Accumulated Depreciation | (462,645) | (398,721) |
Net Book Value | 700,504 | 705,096 |
Open Top and Flat Rack Containers, 20' Folding Flat Rack | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 16,206 | 17,228 |
Accumulated Depreciation | (5,291) | (5,132) |
Net Book Value | 10,915 | 12,096 |
Open Top And Flat Rack Containers, 40' Folding Flat Rack | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 47,739 | 49,167 |
Accumulated Depreciation | (19,073) | (18,275) |
Net Book Value | 28,666 | 30,892 |
Open Top And Flat Rack Containers, 20' Open Top | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 13,046 | 13,253 |
Accumulated Depreciation | (2,090) | (1,790) |
Net Book Value | 10,956 | 11,463 |
Open Top And Flat Rack Containers, 40' Open Top | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 21,394 | 22,271 |
Accumulated Depreciation | (4,827) | (4,738) |
Net Book Value | 16,567 | 17,533 |
Tank containers | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 107,175 | 93,240 |
Accumulated Depreciation | (16,016) | (11,470) |
Net Book Value | $ 91,159 | $ 81,770 |
Net Gain on Sale of Owned Fleet
Net Gain on Sale of Owned Fleet Containers (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)Property | Dec. 31, 2020USD ($)Property | Dec. 31, 2019USD ($)Property | |
Property Plant And Equipment Disclosure [Line Items] | |||
Number of owned fleet containers sold | Property | 53,980 | 106,348 | 104,445 |
Gain on sale of owned fleet containers, net | $ | $ 67,229 | $ 27,230 | $ 21,397 |
Previously written down containers | |||
Property Plant And Equipment Disclosure [Line Items] | |||
Number of owned fleet containers sold | Property | 3,430 | 51,541 | 52,319 |
Gain on sale of owned fleet containers, net | $ | $ 2,165 | $ 15,451 | $ 6,665 |
Containers not written down | |||
Property Plant And Equipment Disclosure [Line Items] | |||
Number of owned fleet containers sold | Property | 50,550 | 54,807 | 52,126 |
Gain on sale of owned fleet containers, net | $ | $ 65,064 | $ 11,779 | $ 14,732 |
Schedule of Concentration Risk
Schedule of Concentration Risk of Total Fleet Lease Rental Income (Detail) - Total Fleet Lease Rental Income - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Customer A | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 21.00% | 17.80% | 14.80% |
Customer B | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 12.20% | 13.10% | 13.50% |
Customer C | |||
Capital Leased Assets [Line Items] | |||
Percentage of lease rental income | 12.10% | 9.70% | 8.70% |
Schedule of Concentration Ris_2
Schedule of Concentration Risk of Total Fleet Gross Accounts Receivable (Detail) - Gross Accounts Receivable - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 24.70% | 25.30% |
Customer B | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 13.90% | 12.60% |
Customer C | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 11.30% | 19.10% |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net income attributable to common shareholders | $ 273,459 | $ 72,822 | $ 56,724 |
Weighted average shares outstanding (in thousands): | |||
Weighted average common shares outstanding-- basic | 49,624 | 53,271 | 57,349 |
Dilutive share options, RSUs and PSUs | 952 | 210 | 110 |
Weighted average common shares outstanding-- diluted | 50,576 | 53,481 | 57,459 |
Net income attributable to common shareholders per share: | |||
Basic | $ 5.51 | $ 1.37 | $ 0.99 |
Diluted | $ 5.41 | $ 1.36 | $ 0.99 |
Share options, RSUs and PSUs excluded from the computation of diluted EPS because they were anti-dilutive | 334 | 1,674 | 1,805 |
Insurance Receivable and Impa_2
Insurance Receivable and Impairment - Additional Information (Detail) - Previously Insolvent Customer - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases Disclosure [Line Items] | |||
Container loss recovery | $ 7,986 | ||
Insurance receivable associated with this insolvent customer | $ 2,106 | ||
China, Yuan Renminbi | |||
Leases Disclosure [Line Items] | |||
Bankruptcy settlement amount received in cash | $ 77 | ||
Bankruptcy settlement amount received in stock value | $ 5,789 |
Managed Container Fleet - Addit
Managed Container Fleet - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Deferred revenue from acquisition fees | $ 947 | $ 1,049 |
Managed Containers | ||
Property, Plant and Equipment [Line Items] | ||
Cash paid to purchase containers from container Investor | 2,725 | |
Containers, leaseback financial liability | 15,977 | $ 4,762 |
Container Investor | ||
Property, Plant and Equipment [Line Items] | ||
Cash consideration | 57,637 | |
Container Investor | Other Net | ||
Property, Plant and Equipment [Line Items] | ||
Loss recognized for effective settlement of pre-existing contractual relationship | $ 116 |
Schedule of Company's Leasing E
Schedule of Company's Leasing Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Containers, cost | $ 6,583,542 | $ 5,744,643 |
Containers, accumulated depreciation | (1,851,664) | (1,619,591) |
Net Book Value | 4,731,878 | 4,125,052 |
Containers - Owned Fleet | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 6,566,785 | 5,740,717 |
Containers, accumulated depreciation | (1,850,721) | (1,619,304) |
Net Book Value | 4,716,064 | 4,121,413 |
Containers - Managed Fleet | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 16,757 | 3,926 |
Containers, accumulated depreciation | (943) | (287) |
Net Book Value | $ 15,814 | $ 3,639 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Lease rental income - managed fleet | $ 750,730 | $ 600,873 | $ 619,760 |
Managed Fleet | |||
Disaggregation Of Revenue [Line Items] | |||
Lease rental income - managed fleet | 56,037 | 62,448 | 101,901 |
Less: distribution expense to managed fleet container investors | (50,360) | (57,311) | (93,858) |
Less: depreciation and interest expense on managed containers purchased on or after January 1, 2019 | (1,348) | (730) | (394) |
Leasing | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 4,329 | 4,407 | 7,649 |
Other Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 3,360 | 5,271 | 7,590 |
Total Management Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 7,689 | $ 9,678 | $ 15,239 |
Summary of Reconciliation of Ba
Summary of Reconciliation of Balance Sheet Accounts From the Managed Fleet to Total Amount in Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Reconciliation Of Current Assets And Liabilities [Line Items] | ||
Total accounts receivable, net | $ 125,746 | $ 108,578 |
Total prepaid expenses and other current assets | 14,184 | 13,713 |
Total accounts payable and accrued expenses | 22,111 | 24,385 |
Total container contracts payable | 140,968 | 231,647 |
Owned Fleet | ||
Reconciliation Of Current Assets And Liabilities [Line Items] | ||
Total accounts receivable, net | 118,107 | 97,950 |
Total prepaid expenses and other current assets | 14,142 | 13,614 |
Total accounts payable and accrued expenses | 21,736 | 23,198 |
Total container contracts payable | 140,968 | 231,647 |
Managed Fleet | ||
Reconciliation Of Current Assets And Liabilities [Line Items] | ||
Total accounts receivable, net | 7,639 | 10,628 |
Total prepaid expenses and other current assets | 42 | 99 |
Total accounts payable and accrued expenses | $ 375 | $ 1,187 |
Transactions with Affiliates _3
Transactions with Affiliates and Container Investors - Additional Information (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Due from affiliates, net | $ 2,376,000 | $ 1,509,000 |
Due to container investors, net | 17,985,000 | 18,697,000 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Fees from affiliated Container Investors | $ 3,527 | ||
Fees from unaffiliated Container Investors | $ 7,689 | $ 9,678 | 11,374 |
Total Management Fees | |||
Related Party Transaction [Line Items] | |||
Management fees | 7,689 | 9,678 | 15,239 |
Total Management Fees | Fees from Container Investors | |||
Related Party Transaction [Line Items] | |||
Management fees | $ 7,689 | $ 9,678 | 14,901 |
Total Management Fees | Other Fees | |||
Related Party Transaction [Line Items] | |||
Management fees | $ 338 |
Summary of Due to Container Inv
Summary of Due to Container Investors, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Accounts receivable, net - managed fleet | $ 7,639 | $ 10,628 |
Distributions due to container investors on lease rentals collected, net of container expenses paid and management fees | 10,679 | 9,157 |
Due to container investors, net | 17,985 | 18,697 |
Managed Fleet | ||
Related Party Transaction [Line Items] | ||
Prepaid expenses and other current assets | 42 | 99 |
Accounts payable and accrued expenses | (375) | (1,187) |
Due from to related party | $ 7,306 | $ 9,540 |
Schedule of Lease Rental Income
Schedule of Lease Rental Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessor Lease Description [Line Items] | |||
Lease rental income - operating leases | $ 632,598 | $ 527,284 | $ 566,949 |
Interest income on net investment in finance leases | 82,659 | 30,121 | 15,356 |
Interest income on container leaseback financing receivable | 21,380 | 17,243 | 10,313 |
Variable lease revenue | 14,093 | 26,225 | 27,142 |
Total lease rental income | 750,730 | 600,873 | 619,760 |
Owned Fleet | |||
Lessor Lease Description [Line Items] | |||
Lease rental income - operating leases | 577,946 | 469,109 | 470,722 |
Interest income on net investment in finance leases | 82,659 | 30,121 | 15,356 |
Interest income on container leaseback financing receivable | 21,380 | 17,243 | 10,313 |
Variable lease revenue | 12,708 | 21,952 | 21,468 |
Total lease rental income | 694,693 | 538,425 | 517,859 |
Managed Fleet | |||
Lessor Lease Description [Line Items] | |||
Lease rental income - operating leases | 54,652 | 58,175 | 96,227 |
Variable lease revenue | 1,385 | 4,273 | 5,674 |
Total lease rental income | $ 56,037 | $ 62,448 | $ 101,901 |
Leases - Lessor - Additional In
Leases - Lessor - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessor Disclosure [Abstract] | |||
Direct financing and sales-type leases, gain (loss) | $ 2,610 | $ (144) | $ (1,027) |
Schedule Future Minimum Lease P
Schedule Future Minimum Lease Payments Receivable (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Lessor Lease Description [Line Items] | |
2022 | $ 476,230 |
2023 | 427,800 |
2024 | 356,486 |
2025 | 277,418 |
2026 | 201,427 |
2027 and thereafter | 380,581 |
Total future minimum lease payments receivable | 2,119,942 |
Owned Fleet | |
Lessor Lease Description [Line Items] | |
2022 | 446,284 |
2023 | 400,845 |
2024 | 332,978 |
2025 | 258,530 |
2026 | 187,451 |
2027 and thereafter | 364,757 |
Total future minimum lease payments receivable | 1,990,845 |
Managed Fleet | |
Lessor Lease Description [Line Items] | |
2022 | 29,946 |
2023 | 26,955 |
2024 | 23,508 |
2025 | 18,888 |
2026 | 13,976 |
2027 and thereafter | 15,824 |
Total future minimum lease payments receivable | $ 129,097 |
Summary of Future Minimum Payme
Summary of Future Minimum Payments Receivable Under Container Leaseback Financing Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessor Disclosure [Abstract] | |||
Future minimum payments receivable | $ 483,325 | $ 505,473 | |
Less: unearned income | (129,065) | (141,181) | |
Container leaseback financing receivable | [1] | 354,260 | 364,292 |
Less: Allowance for credit losses | (113) | (424) | |
Container leaseback financing receivable, net | 354,147 | 363,868 | |
Amounts due within one year | 30,317 | 27,076 | |
Amounts due beyond one year | $ 323,830 | $ 336,792 | |
[1] | One major customer represented 90.6% and 89.7% of the Company’s container leaseback financing receivable portfolio as of December 31, 2021 and 2020, respectively. As of December 31, 2020, one other customer represented 10.3% 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, 2021 | Dec. 31, 2020 | |
Lessor Lease Description [Line Items] | ||
Number of customers represent container leaseback financing receivable portfolio | 1 | 1 |
Customer One | ||
Lessor Lease Description [Line Items] | ||
Percentage of container leaseback financing receivable portfolio | 90.60% | 89.70% |
Customer Two | ||
Lessor Lease Description [Line Items] | ||
Percentage of container leaseback financing receivable portfolio | 10.30% |
Components of net Investment in
Components of net Investment in Direct Financing and Sales-Type Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Future minimum lease payments receivable | $ 2,558,339 | $ 1,216,086 | |
Residual value of containers | 16,532 | 12,601 | |
Less: unearned income | (768,038) | (347,394) | |
Net investment in finance leases | [1] | 1,806,833 | 881,293 |
Less: Allowance for credit losses | (743) | (1,333) | |
Net investment in finance leases, net | 1,806,090 | 879,960 | |
Amounts due within one year | 113,048 | 78,459 | |
Amounts due beyond one year | $ 1,693,042 | $ 801,501 | |
[1] | One major customer represented 85.1% and 80.1% of the Company’s finance lease portfolio as of December 31, 2021 and 2020, respectively. No other customer represented more than 10% of the Company’s finance leases portfolio in each of those periods. |
Components of net Investment _2
Components of net Investment in Direct Financing and Sales-Type Leases (Parenthetical) (Detail) - Customer | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Capital Leased Assets [Line Items] | ||
Number of customers represent direct financing and sales-type leases portfolio | 1 | 1 |
Customer One | ||
Capital Leased Assets [Line Items] | ||
Percentage of direct financing and sales-type leases portfolio | 85.10% | 80.10% |
Future Minimum Lease Payments R
Future Minimum Lease Payments Receivable under Direct Financing and Sales-type Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Container leaseback financing receivable, 2022 | $ 50,515 | |
Container leaseback financing receivable, 2023 | 50,514 | |
Container leaseback financing receivable, 2024 | 46,427 | |
Container leaseback financing receivable, 2025 | 39,015 | |
Container leaseback financing receivable, 2026 | 37,524 | |
Container leaseback financing receivable, 2027 and thereafter | 259,330 | |
Container leaseback financing receivable, Total future minimum lease payments receivable | 483,325 | $ 505,473 |
Net investment in finance leases, 2022 | 215,431 | |
Net investment in finance leases, 2023 | 205,192 | |
Net investment in finance leases, 2024 | 201,925 | |
Net investment in finance leases, 2025 | 196,225 | |
Net investment in finance leases, 2026 | 198,151 | |
Net investment in finance leases, 2027 and thereafter | 1,541,415 | |
Net investment in finance leases, Total future minimum lease payments receivable | 2,558,339 | $ 1,216,086 |
Future minimum lease payments receivable, 2022 | 265,946 | |
Future minimum lease payments receivable, 2023 | 255,706 | |
Future minimum lease payments receivable, 2024 | 248,352 | |
Future minimum lease payments receivable, 2025 | 235,240 | |
Future minimum lease payments receivable, 2026 | 235,675 | |
Future minimum lease payments receivable, 2027 and thereafter | 1,800,745 | |
Total future minimum lease payments receivable | $ 3,041,664 |
Leases - Lessee - Additional In
Leases - Lessee - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee Lease Description [Line Items] | ||
Right-of-use lease assets | $ 8,988 | $ 10,331 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Operating lease liabilities | $ 11,044 | |
Weighted-average discount rate | 4.75% | |
Weighted-average remaining lease term | 4 years | |
Other Liabilities | ||
Lessee Lease Description [Line Items] | ||
Operating lease liabilities | $ 11,044 | $ 12,636 |
Schedule of Rent Expense and Ot
Schedule of Rent Expense and Other Information Related to Operating Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee Disclosure [Abstract] | |||
Operating lease cost | $ 2,103 | $ 2,103 | $ 2,095 |
Short-term and variable lease cost | 112 | 128 | 138 |
Total rent expense | 2,215 | 2,231 | 2,233 |
Cash paid for amounts included in the measurement of lease liabilities | $ 2,379 | $ 2,221 | $ 2,098 |
Minimum Lease Payment under Non
Minimum Lease Payment under Noncancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2022 | $ 2,271 |
2023 | 2,417 |
2024 | 2,397 |
2025 | 2,130 |
2026 | 2,179 |
2027 and thereafter | 935 |
Total minimum lease payments | 12,329 |
Less imputed interest | (1,285) |
Total present value of operating lease liabilities | $ 11,044 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities |
Allowance for Credit Losses - A
Allowance for Credit Losses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable, allowance | $ 1,290 | $ 2,663 |
Finance Leases | Accounts Receivable | Credit Concentration Risk | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Concentration risk percentage | 89.10% | |
Container Leaseback Financing Receivable | Accounts Receivable | Credit Concentration Risk | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Concentration risk percentage | 90.60% | |
Billed | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable, allowance | $ 1,290 | 2,663 |
Billed | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable, allowance | 592 | $ 735 |
Unbilled | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Net investment in finance leases, allowance for credit loss | 1,333 | |
Unbilled | Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Container leaseback financing receivable, allowance for credit losses | $ 424 |
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, 2021 | Dec. 31, 2020 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Net investment in finance leases, net | $ 1,806,090 | $ 879,960 |
Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Year Ended December 31, 2021 | 953,753 | |
2020 | 634,146 | |
2019 | 144,955 | |
2018 | 52,557 | |
2017 | 6,869 | |
Prior | 14,553 | |
Net investment in finance leases, net | 1,806,833 | |
Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Year Ended December 31, 2021 | 17,398 | |
2020 | 107,758 | |
2019 | 229,104 | |
Net investment in finance leases, net | 354,260 | |
Tier 1 | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Year Ended December 31, 2021 | 859,924 | |
2020 | 594,567 | |
2019 | 105,141 | |
2018 | 33,410 | |
2017 | 6,864 | |
Prior | 9,500 | |
Net investment in finance leases, net | 1,609,406 | |
Tier 1 | Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Year Ended December 31, 2021 | 12,108 | |
2020 | 107,758 | |
2019 | 201,114 | |
Net investment in finance leases, net | 320,980 | |
Tier 2 | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Year Ended December 31, 2021 | 86,117 | |
2020 | 37,232 | |
2019 | 33,959 | |
2018 | 18,612 | |
2017 | 5 | |
Prior | 4,910 | |
Net investment in finance leases, net | 180,835 | |
Tier 2 | Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Year Ended December 31, 2021 | 5,290 | |
2019 | 27,990 | |
Net investment in finance leases, net | 33,280 | |
Tier 3 | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Year Ended December 31, 2021 | 7,712 | |
2020 | 2,347 | |
2019 | 5,855 | |
2018 | 535 | |
Prior | 143 | |
Net investment in finance leases, net | $ 16,592 |
Component of Income Tax Expense
Component of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | |||
Bermuda | $ 0 | $ 0 | $ 0 |
Foreign | 594 | 446 | 499 |
Current Income Tax Expense (Benefit), Total | 594 | 446 | 499 |
Deferred | |||
Bermuda | 0 | 0 | 0 |
Foreign | 1,179 | (819) | 1,449 |
Deferred Income Tax Expense (Benefit), Total | 1,179 | (819) | 1,449 |
Income tax (expense) benefit | $ 1,773 | $ (374) | $ 1,948 |
Components of Income Before Inc
Components of Income Before Income Taxes and Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Taxes [Line Items] | ||||
Income before income taxes and non controlling interest | $ 286,061 | $ 73,299 | [1] | $ 58,504 |
Foreign sources | ||||
Income Taxes [Line Items] | ||||
Income before income taxes and non controlling interest | $ 286,061 | $ 73,299 | $ 58,504 | |
[1] | (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized gain (loss) on financial instruments, net of $4,409, $(6,044) and $(15,442) for the years ended December 31, 2021, 2020 and 2019, respectively, and debt termination expense of $15,209, $8,750 and $0 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Reconciliation of Differences b
Reconciliation of Differences between Bermuda Statutory Income Tax Rate and Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Bermuda tax rate | 0.00% | 0.00% | 0.00% |
Foreign tax rate | 0.09% | (1.76%) | 0.32% |
Tax uncertainties | 0.53% | 1.25% | 3.01% |
Income tax (expense) benefit, net | 0.62% | (0.51%) | 3.33% |
Foreign tax rate | $ 271 | $ (1,291) | $ 188 |
Tax uncertainties | 1,502 | 917 | 1,760 |
Income tax (expense) benefit | $ 1,773 | $ (374) | $ 1,948 |
Components of Income Tax Expens
Components of Income Tax Expense and Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Tax Disclosure [Abstract] | ||||
Income before income taxes and non controlling interest | $ 286,061 | $ 73,299 | [1] | $ 58,504 |
Tax uncertainties | 1,502 | 917 | 1,760 | |
Stock base compensation | (622) | (94) | 390 | |
162(m) officers' compensation | 412 | 102 | 15 | |
Adjustment for prior years | (392) | 47 | 270 | |
Foreign derived intangible income | (329) | (112) | (77) | |
Valuation allowance | (382) | 67 | 315 | |
Foreign rate difference | 1,583 | (1,333) | (778) | |
Other | 1 | 32 | 53 | |
Foreign taxes rate | 271 | (1,291) | 188 | |
Income tax (expense) benefit | $ 1,773 | $ (374) | $ 1,948 | |
Tax uncertainties | 0.53% | 1.25% | 3.01% | |
Stock base compensation | (0.22%) | (0.13%) | 0.67% | |
162(m) officers' compensation | 0.14% | 0.14% | 0.03% | |
Adjustment for prior years | (0.14%) | 0.06% | 0.46% | |
Foreign derived intangible income | (0.12%) | (0.15%) | (0.13%) | |
Valuation allowance | (0.13%) | 0.09% | 0.54% | |
Foreign rate difference | 0.55% | (1.82%) | (1.33%) | |
Other | 0.00% | 0.04% | 0.09% | |
Foreign tax rate | 0.09% | (1.76%) | 0.32% | |
Income tax (expense) benefit, net | 0.62% | (0.51%) | 3.33% | |
[1] | (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized gain (loss) on financial instruments, net of $4,409, $(6,044) and $(15,442) for the years ended December 31, 2021, 2020 and 2019, respectively, and debt termination expense of $15,209, $8,750 and $0 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Significant Portions of Deferre
Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 17,765,000 | $ 19,284,000 |
Other | 1,006,000 | 1,457,000 |
Deferred tax assets, gross | 18,771,000 | 20,741,000 |
Valuation allowance | 0 | (382,000) |
Deferred tax assets | 18,771,000 | 20,359,000 |
Deferred tax liabilities | ||
Containers, net | 25,287,000 | 25,043,000 |
Other | 654,000 | |
Deferred tax liabilities | 25,287,000 | 25,697,000 |
Net deferred tax liabilities | $ 6,516,000 | $ 5,338,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | |||
Valuation allowance | $ 0 | $ 382,000 | |
Period for cumulative ownership change | 3 years | ||
Cumulative earnings undistributed | $ 45,361,000 | ||
Taxes payable current and noncurrent | 13,608,000 | ||
Unrecognized tax benefits | 22,152,000 | 20,575,000 | $ 19,642,000 |
Unrecognized tax benefits, if recognized, would reduce annual effective tax rate | 22,084,000 | ||
Estimated decrease in unrecognized tax benefits due to expiration of certain statutes of limitations in the next twelve months | 1,777,000 | ||
Income tax examination interest and penalty expense | (78,000) | (11,000) | $ 182,000 |
Income tax examination total accrued interest and penalties | 1,381,000 | $ 1,460,000 | |
U.S. Federal | |||
Income Taxes [Line Items] | |||
Net operating loss carry-forwards | 106,151,000 | ||
Estimated net taxable income | 2,752,000 | ||
Net operating loss carry-forwards without expiration | $ 24,735,000 | ||
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, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Beginning Balance | $ 20,575 | $ 19,642 |
Increases related to prior year tax positions | 156 | 19 |
Increases related to current year tax positions | 2,878 | 2,357 |
Lapse of statute of limitations | (1,457) | (1,444) |
Ending Balance | $ 22,152 | $ 20,575 |
Debt Obligation (Detail)
Debt Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Debt Instrument [Line Items] | |||
Long term debt | $ 5,340,520 | $ 4,115,344 | |
Amount due within one year | 380,207 | 408,365 | |
Amounts due beyond one year | 4,960,313 | 3,706,979 | |
TL Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 1,059,950 | $ 1,433,919 | |
Weighted average variable interest rate | 1.60% | 1.65% | |
Final Maturity | Sep. 30, 2023 | ||
TL 2019 Term Loan | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 137,513 | $ 148,131 | |
Weighted average variable interest rate | 3.50% | 3.50% | |
Final Maturity | Dec. 31, 2026 | ||
TL 2021-1 Term loan | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 65,131 | ||
Weighted average variable interest rate | 2.65% | 0.00% | |
Final Maturity | Feb. 29, 2028 | ||
TL 2021-2 Term Loan | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 204,712 | ||
Weighted average variable interest rate | 2.90% | 0.00% | |
Final Maturity | Oct. 31, 2028 | ||
TMCL II Secured Debt Facility | |||
Debt Instrument [Line Items] | |||
Long term debt | [1] | $ 1,067,886 | $ 646,551 |
Weighted average variable interest rate | [1] | 1.75% | 1.91% |
Final Maturity | [1] | Nov. 30, 2028 | |
TMCL VI Term Loan | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 223,630 | ||
Weighted average variable interest rate | 0.00% | 4.29% | |
TMCL VII 2019-1 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 300,305 | ||
Weighted average variable interest rate | 0.00% | 4.02% | |
TMCL VII 2020-1 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 384,611 | $ 429,600 | |
Weighted average variable interest rate | 3.07% | 3.07% | |
Final Maturity | Aug. 31, 2045 | ||
TMCL VII 2020-2 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 530,565 | $ 587,183 | |
Weighted average variable interest rate | 2.26% | 2.26% | |
Final Maturity | Sep. 30, 2045 | ||
TMCL VII 2020-3 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 194,414 | $ 214,168 | |
Weighted average variable interest rate | 2.15% | 2.15% | |
Final Maturity | Sep. 30, 2045 | ||
TMCL VII 2021-1 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 508,024 | ||
Weighted average variable interest rate | 1.72% | 0.00% | |
Final Maturity | Feb. 28, 2046 | ||
TMCL VII 2021-2 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 610,111 | ||
Weighted average variable interest rate | 2.27% | 0.00% | |
Final Maturity | Apr. 30, 2046 | ||
TMCL VII 2021-3 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 577,603 | ||
Weighted average variable interest rate | 1.98% | 0.00% | |
Final Maturity | Aug. 31, 2046 | ||
TAP Funding Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 131,857 | ||
Weighted average variable interest rate | 0.00% | 2.11% | |
[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 | |||||
Aug. 31, 2021 | Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2021 | Feb. 28, 2021 | ||
Debt Instrument [Line Items] | |||||||
Write-off of unamortized debt issuance costs | [1] | $ 15,209,000 | $ 8,750,000 | ||||
TL | Minimum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
LIBOR plus interest rate | 1.50% | ||||||
TL | Maximum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
LIBOR plus interest rate | 2.00% | ||||||
TMCL II Secured Debt Facility | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate maximum commitment amount | $ 1,200,000,000 | $ 1,500,000,000 | $ 1,500,000,000 | ||||
LIBOR plus interest rate | 1.75% | ||||||
Final Maturity | [2] | Nov. 30, 2028 | |||||
Debt instrument, conversion date | Nov. 30, 2024 | ||||||
Debt instrument daily SOFR plus spread of payable monthly in arrears | 1.60% | ||||||
TL Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Final Maturity | Sep. 30, 2023 | ||||||
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 | ||||||
TL 2019 Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate maximum commitment amount | $ 160,000,000 | ||||||
Final Maturity | Dec. 31, 2026 | ||||||
TL 2021-1 Term loan | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate maximum commitment amount | $ 70,270,000 | ||||||
Final Maturity | Feb. 29, 2028 | ||||||
TL 2021-2 Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate maximum commitment amount | $ 209,000,000 | ||||||
Final Maturity | Oct. 31, 2028 | ||||||
TMCL VI Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate maximum commitment amount | $ 300,000,000 | ||||||
Loan termination payment | $ 10,631,000 | ||||||
Write-off of unamortized debt issuance costs | 1,235,000 | ||||||
TMCL VII 2019-1 Bonds | |||||||
Debt Instrument [Line Items] | |||||||
Write-off of unamortized debt issuance costs | 2,857,000 | ||||||
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] | |||||||
Final Maturity | Aug. 31, 2045 | ||||||
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] | |||||||
Final Maturity | Sep. 30, 2045 | ||||||
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] | |||||||
Final Maturity | Sep. 30, 2045 | ||||||
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 | ||||||
TMCL VII 2021-1 Bonds | |||||||
Debt Instrument [Line Items] | |||||||
Final Maturity | Feb. 28, 2046 | ||||||
TMCL VII 2021-1 Bonds | Class A Secured Debt Facility | |||||||
Debt Instrument [Line Items] | |||||||
Bonds issued | $ 523,500,000 | ||||||
TMCL VII 2021-1 Bonds | Class B Secured Debt Facility | |||||||
Debt Instrument [Line Items] | |||||||
Bonds issued | $ 26,500,000 | ||||||
TMCL VII 2021-2 Bonds | |||||||
Debt Instrument [Line Items] | |||||||
Final Maturity | Apr. 30, 2046 | ||||||
TMCL VII 2021-2 Bonds | Class A Secured Debt Facility | |||||||
Debt Instrument [Line Items] | |||||||
Bonds issued | 605,200,000 | ||||||
TMCL VII 2021-2 Bonds | Class B Secured Debt Facility | |||||||
Debt Instrument [Line Items] | |||||||
Bonds issued | $ 46,000,000 | ||||||
TMCL VII 2021-3 Bonds | |||||||
Debt Instrument [Line Items] | |||||||
Final Maturity | Aug. 31, 2046 | ||||||
TMCL VII 2021-3 Bonds | Class A Secured Debt Facility | |||||||
Debt Instrument [Line Items] | |||||||
Bonds issued | 548,800,000 | ||||||
TMCL VII 2021-3 Bonds | Class B Secured Debt Facility | |||||||
Debt Instrument [Line Items] | |||||||
Bonds issued | $ 51,200,000 | ||||||
[1] | Amounts for the years ended December 31, 2020 and 2019 have been reclassified to conform with the 2021 presentation (see Note 1 (w) “Reclassifications and Changes in Presentation”). | ||||||
[2] | 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 Repa
Estimated Future Scheduled Repayments (Detail) | Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | ||
2022 | $ 388,831,000 | [1] |
2023 | 1,452,910,000 | [1] |
2024 | 395,784,000 | [1] |
2025 | 407,496,000 | [1] |
2026 | 471,703,000 | [1] |
2027 and thereafter | 2,264,439,000 | [1] |
Total Borrowing | 5,381,163,000 | [1] |
Available Borrowing, as Limited by the Borrowing Base | 299,494,000 | [1] |
Current and Available Borrowing, as limited by the Borrowing Base | 5,680,657,000 | [1] |
TL Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
2023 | 1,062,858,000 | |
Total Borrowing | 1,062,858,000 | |
Available Borrowing, as Limited by the Borrowing Base | 299,494,000 | |
Current and Available Borrowing, as limited by the Borrowing Base | 1,362,352,000 | |
TL 2019 Term Loan | ||
Debt Instrument [Line Items] | ||
2022 | 11,285,000 | |
2023 | 11,686,000 | |
2024 | 12,102,000 | |
2025 | 12,532,000 | |
2026 | 90,973,000 | |
Total Borrowing | 138,578,000 | |
Current and Available Borrowing, as limited by the Borrowing Base | 138,578,000 | |
TL 2021-1 Term loan | ||
Debt Instrument [Line Items] | ||
2022 | 5,490,000 | |
2023 | 5,637,000 | |
2024 | 5,789,000 | |
2025 | 5,944,000 | |
2026 | 6,103,000 | |
2027 and thereafter | 36,841,000 | |
Total Borrowing | 65,804,000 | |
Current and Available Borrowing, as limited by the Borrowing Base | 65,804,000 | |
TL 2021-2 Term Loan | ||
Debt Instrument [Line Items] | ||
2022 | 14,434,000 | |
2023 | 14,858,000 | |
2024 | 15,294,000 | |
2025 | 15,743,000 | |
2026 | 16,205,000 | |
2027 and thereafter | 130,101,000 | |
Total Borrowing | 206,635,000 | |
Current and Available Borrowing, as limited by the Borrowing Base | 206,635,000 | |
TMCL II Secured Debt Facility | ||
Debt Instrument [Line Items] | ||
2022 | 75,345,000 | [2] |
2023 | 69,210,000 | [2] |
2024 | 70,628,000 | [2] |
2025 | 82,028,000 | [2] |
2026 | 74,191,000 | [2] |
2027 and thereafter | 702,339,000 | [2] |
Total Borrowing | 1,073,741,000 | [2] |
Current and Available Borrowing, as limited by the Borrowing Base | 1,073,741,000 | [2] |
TMCL VII 2020-1 Bonds | ||
Debt Instrument [Line Items] | ||
2022 | 56,921,000 | [3] |
2023 | 57,675,000 | [3] |
2024 | 58,419,000 | [3] |
2025 | 57,411,000 | [3] |
2026 | 51,728,000 | [3] |
2027 and thereafter | 106,040,000 | [3] |
Total Borrowing | 388,194,000 | [3] |
Current and Available Borrowing, as limited by the Borrowing Base | 388,194,000 | [3] |
TMCL VII 2020-2 Bonds | ||
Debt Instrument [Line Items] | ||
2022 | 61,149,000 | [3] |
2023 | 66,779,000 | [3] |
2024 | 69,345,000 | [3] |
2025 | 69,631,000 | [3] |
2026 | 68,296,000 | [3] |
2027 and thereafter | 200,490,000 | [3] |
Total Borrowing | 535,690,000 | [3] |
Current and Available Borrowing, as limited by the Borrowing Base | 535,690,000 | [3] |
TMCL VII 2020-3 Bonds | ||
Debt Instrument [Line Items] | ||
2022 | 20,111,000 | [3] |
2023 | 20,111,000 | [3] |
2024 | 20,111,000 | [3] |
2025 | 20,111,000 | [3] |
2026 | 20,111,000 | [3] |
2027 and thereafter | 95,306,000 | [3] |
Total Borrowing | 195,861,000 | [3] |
Current and Available Borrowing, as limited by the Borrowing Base | 195,861,000 | [3] |
TMCL VII 2021-1 Bonds | ||
Debt Instrument [Line Items] | ||
2022 | 44,000,000 | [3] |
2023 | 44,000,000 | [3] |
2024 | 44,000,000 | [3] |
2025 | 44,000,000 | [3] |
2026 | 44,000,000 | [3] |
2027 and thereafter | 293,333,000 | [3] |
Total Borrowing | 513,333,000 | [3] |
Current and Available Borrowing, as limited by the Borrowing Base | 513,333,000 | [3] |
TMCL VII 2021-2 Bonds | ||
Debt Instrument [Line Items] | ||
2022 | 52,096,000 | [3] |
2023 | 52,096,000 | [3] |
2024 | 52,096,000 | [3] |
2025 | 52,096,000 | [3] |
2026 | 52,096,000 | [3] |
2027 and thereafter | 355,989,000 | [3] |
Total Borrowing | 616,469,000 | [3] |
Current and Available Borrowing, as limited by the Borrowing Base | 616,469,000 | [3] |
TMCL VII 2021-3 Bonds | ||
Debt Instrument [Line Items] | ||
2022 | 48,000,000 | [3] |
2023 | 48,000,000 | [3] |
2024 | 48,000,000 | [3] |
2025 | 48,000,000 | [3] |
2026 | 48,000,000 | [3] |
2027 and thereafter | 344,000,000 | [3] |
Total Borrowing | 584,000,000 | [3] |
Current and Available Borrowing, as limited by the Borrowing Base | $ 584,000,000 | [3] |
[1] | Future scheduled payments for all debts exclude prepaid debt issuance costs in an aggregate amount of $40,030. | |
[2] | The estimated future scheduled repayments for TMCL II Secured Debt Facility are based on the assumption that the facility will not be extended on its associated conversion date. | |
[3] | Future scheduled payments for all bonds payable exclude unamortized discounts in an aggregate amount of $613. |
Estimated Future Scheduled Re_2
Estimated Future Scheduled Repayments (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
Bonds payable exclude an unamortized discount | $ 613 |
Prepaid debt issuance costs | $ 40,030 |
Summary of Fair Value of Deriva
Summary of Fair Value of Derivative Instruments Inclusive of Counterparty Risk on Consolidated Balance Sheets (Detail) - Interest Rate Swap - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liabilities | $ 2,139 | $ 29,235 |
Assets | ||
Derivatives Fair Value [Line Items] | ||
Assets | 12,278 | 47 |
Designated as Hedges | Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liabilities | 2,139 | 9,665 |
Designated as Hedges | Assets | ||
Derivatives Fair Value [Line Items] | ||
Assets | $ 12,278 | 47 |
Not designated as hedges | Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liabilities | $ 19,570 |
Summary of Derivative Instrumen
Summary of Derivative Instruments (Detail) - Designated as Hedges - Interest Rate Swap $ in Thousands | Dec. 31, 2021USD ($) |
Derivative [Line Items] | |
Notional amounts | $ 1,724,250 |
Amortizing | LIBOR | |
Derivative [Line Items] | |
Notional amounts | 856,250 |
Amortizing | SOFR | |
Derivative [Line Items] | |
Notional amounts | $ 868,000 |
Summary of Derivative Instrum_2
Summary of Derivative Instruments (Parenthetical) (Detail) - Interest Rate Swaps - Designated as Hedges | 12 Months Ended |
Dec. 31, 2021 | |
LIBOR | |
Derivative [Line Items] | |
Derivative term | May 30, 2031 |
SOFR | |
Derivative [Line Items] | |
Derivative term | March 17, 2031 |
Minimum | LIBOR | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 0.17% |
Minimum | SOFR | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 0.36% |
Maximum [Member] | LIBOR | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 1.28% |
Maximum [Member] | SOFR | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 1.48% |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - Interest Rate Swap $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Not designated as hedges | |
Derivative [Line Items] | |
Total notional amount | $ 508,250 |
Accrued interest | 14,552 |
Designated as Hedges | |
Derivative [Line Items] | |
Total notional amount | 1,030,000 |
Estimated amount to be reclassified from AOCI to interest expense | $ 13,365 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments Gain Loss [Line Items] | |||
Pre-tax impact of derivative instruments | $ (5,634) | $ (12,295) | $ 1,946 |
Realized (loss) gain on financial instruments, net | Non-designated | |||
Derivative Instruments Gain Loss [Line Items] | |||
Pre-tax impact of derivative instruments | (5,408) | (12,295) | 1,939 |
Unrealized gain (loss) on financial instruments, net | Non-designated | |||
Derivative Instruments Gain Loss [Line Items] | |||
Pre-tax impact of derivative instruments | 5,220 | (6,044) | (15,442) |
Other comprehensive income (loss) | Designated | |||
Derivative Instruments Gain Loss [Line Items] | |||
Pre-tax impact of derivative instruments | 10,986 | (12,307) | (110) |
Interest expense, net | Designated | |||
Derivative Instruments Gain Loss [Line Items] | |||
Pre-tax impact of derivative instruments | $ (8,771) | $ (2,806) | $ 7 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Summary of Segment Information
Summary of Segment Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting Information [Line Items] | ||||
Lease rental income | $ 750,730 | $ 600,873 | $ 619,760 | |
Trading container margin | 10,760 | 3,532 | 7,398 | |
Gain on sale of owned fleet containers, net | 67,229 | 27,230 | 21,397 | |
Depreciation expense | 281,575 | 261,665 | 260,372 | |
Container lessee default recovery, net | 1,088 | 1,675 | ||
Container lessee default expense, net | 7,867 | |||
Interest expense | 127,269 | 123,230 | 153,185 | |
Debt termination expense | 15,209 | 8,750 | ||
Realized (loss) gain on financial instruments, net | (5,634) | (12,295) | 1,946 | |
Unrealized gain (loss) on financial / derivatives instruments, net | 4,409 | (6,044) | (15,442) | |
Income before income taxes and non controlling interest | 286,061 | 73,299 | [1] | 58,504 |
Income tax (expense) benefit | (1,773) | 374 | (1,948) | |
Total assets | 7,367,444 | 5,741,376 | 5,202,617 | |
Purchase of containers and fixed assets | 1,993,140 | 968,398 | 433,677 | |
Payments on container leaseback financing receivable | 18,705 | 116,263 | 281,445 | |
Owned Fleet | ||||
Segment Reporting Information [Line Items] | ||||
Lease rental income | 694,693 | 538,425 | 517,859 | |
Managed Fleet | ||||
Segment Reporting Information [Line Items] | ||||
Lease rental income | 56,037 | 62,448 | 101,901 | |
Container Ownership | ||||
Segment Reporting Information [Line Items] | ||||
Lease rental income | 694,045 | 537,534 | 516,307 | |
Gain on sale of owned fleet containers, net | 67,229 | 27,230 | 21,397 | |
Depreciation expense | 289,610 | 268,401 | 266,832 | |
Container lessee default recovery, net | 1,088 | 1,675 | ||
Container lessee default expense, net | 7,867 | |||
Interest expense | 126,628 | 122,863 | 152,914 | |
Debt termination expense | 15,209 | 8,750 | 0 | |
Realized (loss) gain on financial instruments, net | (5,408) | (12,295) | 1,946 | |
Unrealized gain (loss) on financial / derivatives instruments, net | 5,220 | (6,044) | (15,442) | |
Income before income taxes and non controlling interest | 239,857 | 41,831 | [1] | 14,296 |
Income tax (expense) benefit | (1,404) | 1,088 | (1,086) | |
Total assets | 7,269,451 | 5,641,866 | 5,101,301 | |
Purchase of containers and fixed assets | 1,991,898 | 968,204 | 420,971 | |
Payments on container leaseback financing receivable | 18,705 | 116,263 | 281,445 | |
Container Ownership | Owned Fleet | ||||
Segment Reporting Information [Line Items] | ||||
Lease rental income | 694,045 | 537,534 | 516,307 | |
Container Management | ||||
Segment Reporting Information [Line Items] | ||||
Lease rental income | 56,685 | 63,339 | 103,453 | |
Depreciation expense | 1,110 | 939 | 916 | |
Interest expense | 641 | 367 | 271 | |
Realized (loss) gain on financial instruments, net | (226) | |||
Unrealized gain (loss) on financial / derivatives instruments, net | (811) | |||
Income before income taxes and non controlling interest | 46,706 | 23,641 | [1] | 27,747 |
Income tax (expense) benefit | (369) | (714) | (862) | |
Total assets | 230,810 | 180,933 | 184,215 | |
Purchase of containers and fixed assets | 1,242 | 194 | 12,706 | |
Container Management | Owned Fleet | ||||
Segment Reporting Information [Line Items] | ||||
Lease rental income | 648 | 891 | 1,552 | |
Container Management | Managed Fleet | ||||
Segment Reporting Information [Line Items] | ||||
Lease rental income | 56,037 | 62,448 | 101,901 | |
Container Resale | ||||
Segment Reporting Information [Line Items] | ||||
Trading container margin | 10,760 | 3,532 | 7,398 | |
Income before income taxes and non controlling interest | 19,166 | 16,433 | [1] | 21,036 |
Total assets | 15,819 | 12,050 | 19,573 | |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Income before income taxes and non controlling interest | (4,845) | (3,254) | [1] | (4,089) |
Total assets | 12,644 | 13,691 | 7,206 | |
Management Fees - Non-Leasing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,360 | 5,271 | 7,590 | |
Management Fees - Non-Leasing | External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,360 | 5,271 | 7,590 | |
Management Fees - Non-Leasing | Container Ownership | External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 392 | 219 | ||
Management Fees - Non-Leasing | Container Management | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 83,074 | 54,899 | 48,215 | |
Management Fees - Non-Leasing | Container Management | External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 373 | 129 | 1,646 | |
Management Fees - Non-Leasing | Container Resale | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 9,954 | 12,575 | 12,323 | |
Management Fees - Non-Leasing | Container Resale | External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,987 | 4,750 | 5,725 | |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation expense | (9,145) | (7,675) | (7,376) | |
Income before income taxes and non controlling interest | (14,823) | (5,352) | [1] | (486) |
Total assets | (161,280) | (107,164) | (109,678) | |
Eliminations | Management Fees - Non-Leasing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ (93,028) | $ (67,474) | $ (60,538) | |
[1] | (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized gain (loss) on financial instruments, net of $4,409, $(6,044) and $(15,442) for the years ended December 31, 2021, 2020 and 2019, respectively, and debt termination expense of $15,209, $8,750 and $0 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Summary of Segment Informatio_2
Summary of Segment Information (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Unrealized gain (loss) on financial instruments, net | $ 4,409 | $ (6,044) | $ (15,442) |
Debt termination expense | 15,209 | 8,750 | |
Container Ownership | |||
Segment Reporting Information [Line Items] | |||
Unrealized gain (loss) on financial instruments, net | 5,220 | (6,044) | (15,442) |
Debt termination expense | $ 15,209 | $ 8,750 | $ 0 |
Segment Information Geographic
Segment Information Geographic Allocation of Lease Rental Income and Management Fees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Lease rental income | $ 750,730 | $ 600,873 | $ 619,760 |
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 | $ 373,614 | $ 302,709 | $ 329,567 |
Percent of Total, Lease rental income | 49.80% | 50.40% | 53.20% |
Percent of Total, Management fees | 1.30% | 0.20% | 0.40% |
Bermuda | |||
Segment Reporting Information [Line Items] | |||
Percent of Total, Management fees | 50.60% | 53.10% | 60.20% |
Europe | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | $ 343,351 | $ 266,431 | $ 255,495 |
Percent of Total, Lease rental income | 45.70% | 44.30% | 41.20% |
Percent of Total, Management fees | 45.50% | 45.50% | 30.80% |
North / South America | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | $ 32,296 | $ 29,391 | $ 31,786 |
Percent of Total, Lease rental income | 4.30% | 4.90% | 5.10% |
Percent of Total, Management fees | 0.70% | 0.20% | 4.50% |
All other international | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | $ 1,469 | $ 2,342 | $ 2,912 |
Percent of Total, Lease rental income | 0.20% | 0.40% | 0.50% |
Percent of Total, Management fees | 1.90% | 1.00% | 4.10% |
Total Management Fees | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 7,689 | $ 9,678 | $ 15,239 |
Total Management Fees | Non Leasing From External Customers | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,360 | 5,271 | 7,590 |
Total Management Fees | Non Leasing From External Customers | Asia | |||
Segment Reporting Information [Line Items] | |||
Revenue | 45 | 11 | 28 |
Total Management Fees | Non Leasing From External Customers | Bermuda | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,699 | 2,797 | 4,576 |
Total Management Fees | Non Leasing From External Customers | Europe | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,530 | 2,397 | 2,334 |
Total Management Fees | Non Leasing From External Customers | North / South America | |||
Segment Reporting Information [Line Items] | |||
Revenue | 23 | 9 | 342 |
Total Management Fees | Non Leasing From External Customers | All other international | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 63 | $ 57 | $ 310 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Gain on sale of owned fleet containers, net | $ 67,229 | $ 27,230 | $ 21,397 |
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 | $ 32,045 | $ 31,941 | $ 58,734 |
Asia | |||
Segment Reporting Information [Line Items] | |||
Gain on sale of owned fleet containers, net | $ 46,328 | $ 13,082 | $ 7,714 |
Percent of Total, Trading container sales proceeds | 44.70% | 46.60% | 67.30% |
Percent of Total, Gain on sale of containers, net | 68.90% | 48.10% | 36.00% |
Asia | Trading Containers | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 14,317 | $ 14,896 | $ 39,519 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Gain on sale of owned fleet containers, net | $ 10,516 | $ 5,538 | $ 5,577 |
Percent of Total, Trading container sales proceeds | 16.60% | 12.50% | 10.90% |
Percent of Total, Gain on sale of containers, net | 15.70% | 20.30% | 26.10% |
Europe | Trading Containers | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 5,321 | $ 3,991 | $ 6,411 |
North / South America | |||
Segment Reporting Information [Line Items] | |||
Gain on sale of owned fleet containers, net | $ 10,385 | $ 8,610 | $ 6,809 |
Percent of Total, Trading container sales proceeds | 38.70% | 40.90% | 21.80% |
Percent of Total, Gain on sale of containers, net | 15.40% | 31.60% | 31.80% |
North / South America | Trading Containers | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 12,404 | $ 13,045 | $ 12,788 |
All other international | |||
Segment Reporting Information [Line Items] | |||
Gain on sale of owned fleet containers, net | $ 1,297 | ||
Percent of Total, Trading container sales proceeds | 0.00% | 0.00% | 0.00% |
Percent of Total, Gain on sale of containers, net | 6.10% | ||
All other international | Trading Containers | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 3 | $ 9 | $ 16 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Restricted Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Total restricted cash | $ 76,362 | $ 74,147 |
Other Restricted Cash Accounts | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Total restricted cash | 60,073 | 57,093 |
Trust Accounts | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Total restricted cash | $ 16,289 | $ 17,054 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Jan. 31, 2022 | Dec. 31, 2021 |
Commitments And Contingencies Disclosure [Line Items] | ||
Containers orders placed | $ 75,015,000 | |
Future minimum lease payment obligations | 12,329,000 | |
Fleet Management Agreements | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Future minimum lease payment obligations | $ 0 | |
Sales-type Leaseback Financing Arrangement | Subsequent Event | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Containers orders placed | $ 411,870,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vest increments per year | 25.00% | ||
Total Compensation cost related to non-vested share option and restricted stock unit not yet recognized | $ 622 | ||
Total compensation cost related to non-vested shares and restricted stock to be recognized over weighted average period | 1 year 6 months | ||
Closing common share price | $ 35.71 | ||
Aggregate intrinsic value of all options exercisable and outstanding | $ 11,776 | ||
Aggregate intrinsic value of all options exercised | $ 5,513 | $ 710 | $ 4 |
Weighted average contractual life of share options exercisable | 4 years 4 months 24 days | ||
Weighted average contractual life of share options outstanding | 4 years 8 months 12 days | ||
Stock options granted | 0 | 0 | 250,000 |
Weighted average grant date fair value of share options granted | $ 4.47 | ||
PSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share units granted | 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 | $ 11,889 | ||
Total compensation cost related to non-vested shares and restricted stock to be recognized over weighted average period | 1 year 10 months 24 days | ||
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 | $ 11,889 | ||
Total compensation cost related to non-vested shares and restricted stock to be recognized over weighted average period | 1 year 10 months 24 days | ||
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 | 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 | 2,105,418 | ||
Share units granted | 207,790 | 384,428 | 309,192 |
2019 Plan | RSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share units granted | 102,956 | 200,868 | 309,192 |
2019 Plan | PSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years |
Summary of Activity of Stock Op
Summary of Activity of Stock Option in Two Thousand Nineteen Plan (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share options (common share equivalents) | |||
Beginning Balance | 1,529,026 | 1,807,665 | 1,703,908 |
Options granted during the period | 0 | 0 | 250,000 |
Options exercised during the period | (477,103) | (113,960) | (13,014) |
Options expired during the period | (40,000) | (130,711) | (113,917) |
Options forfeited during the period | (19,128) | (33,968) | (19,312) |
Ending Balance | 992,795 | 1,529,026 | 1,807,665 |
Options exercisable at period end | 833,186 | ||
Options vested and expected to vest at period end | 986,011 | ||
Weighted average exercise price | |||
Beginning Balance | $ 19.90 | $ 19.76 | $ 21.44 |
Options granted during the period | 9.14 | ||
Options exercised during the period | 18.95 | 11.36 | 9.70 |
Options expired during the period | 32.70 | 26.14 | 23.73 |
Options forfeited during the period | 10.74 | 12.40 | 14.08 |
Ending Balance | 20.02 | $ 19.90 | $ 19.76 |
Options exercisable at period end | 21.98 | ||
Options vested and expected to vest at period end | $ 20.09 |
Fair Value of Stock Option_PSU
Fair Value of Stock Option/PSU Awards Granted Assumptions Used (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement Assumptions Used To Estimate Fair Values Of Share Options Granted [Line Items] | |||
Risk-free interest rates | 1.70% | ||
Expected terms (in years) | 5 years 6 months | ||
Expected common share price volatilities | 52.90% | ||
Expected dividends | 0.00% | ||
Expected forfeitures | 3.40% | ||
PSU | |||
Share Based Compensation Arrangement Assumptions Used To Estimate Fair Values Of Share Options Granted [Line Items] | |||
Risk-free interest rates | 0.54% | 0.16% | |
Expected common share price volatilities | 59.80% | 57.40% | |
Expected dividends | 0.00% | 0.00% |
Summary of Activity of RSU and
Summary of Activity of RSU and PSU Awards Under the 2019 Plan (Detail) - 2019 Plan - $ / shares | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
RSU and PSU | |||||
Beginning Balance | 721,901 | 657,620 | 640,750 | ||
Share units granted during the period | 207,790 | 384,428 | 309,192 | ||
Share units vested during the period | (285,688) | [1] | (300,404) | (281,377) | |
Share units forfeited during the period | (18,753) | (19,743) | (10,945) | ||
Ending Balance | 625,250 | 721,901 | 657,620 | ||
Total share units outstanding and expected to vest at period end | 590,615 | ||||
RSU | |||||
RSU and PSU | |||||
Beginning Balance | 538,341 | 657,620 | 640,750 | ||
Share units granted during the period | 102,956 | 200,868 | 309,192 | ||
Share units vested during the period | (278,684) | [1] | (300,404) | (281,377) | |
Share units forfeited during the period | (18,753) | (19,743) | (10,945) | ||
Ending Balance | 343,860 | 538,341 | 657,620 | ||
PSU | |||||
RSU and PSU | |||||
Beginning Balance | [2] | 183,560 | |||
Share units granted during the period | [2] | 104,834 | 183,560 | ||
Share units vested during the period | [1],[2] | (7,004) | |||
Ending Balance | [2] | 281,390 | 183,560 | ||
RSU and PSU | |||||
Weighted average grant date fair value | |||||
Beginning Balance | $ 14.55 | $ 11.95 | $ 14.20 | ||
Share units granted during the period | 44.62 | 16.96 | 9.20 | ||
Share units vested during the period | 12.32 | [1] | 12.08 | 13.97 | |
Share units forfeited during the period | 12.70 | 12.62 | 14.32 | ||
Ending Balance | 25.37 | $ 14.55 | $ 11.95 | ||
Total share units outstanding and expected to vest at December 31, 2021 | $ 25.12 | ||||
[1] | As of December 31, 2021, an incremental fair value expense of $577 was recognized for certain awards that were modified to accelerate vesting upon retirement. | ||||
[2] | The grant date fair value of PSU awards granted during 2021 and 2020 were $55.85 per share and $22.06 per share, respectively. On the settlement date for each measurement period of market-based awards, grantees may receive shares equal to 0% to 200% of the three-year |
Summary of Activity of RSU an_2
Summary of Activity of RSU and PSU Awards Under the 2019 Plan (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
PSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share units granted | 0 | ||
2019 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share units granted | 207,790 | 384,428 | 309,192 |
Incremental fair value expense | $ 577 | ||
2019 Plan | PSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 55.85 | $ 22.06 | |
Vesting period | 3 years | ||
2019 Plan | PSU | 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 | PSU | 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% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | Aug. 31, 2021USD ($)$ / shares | May 31, 2021USD ($) | Aug. 31, 2021USD ($)$ / sharesshares | Apr. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) |
Equity Class Of Treasury Stock [Line Items] | |||||||
Increase in common stock repurchase program, authorized amount | $ | $ 100,000,000 | $ 75,000,000 | |||||
Purchase of treasury shares (in shares) | shares | 2,426,725 | 6,736,493 | |||||
Common stock repurchased, average price per share | $ 29.76 | $ 10.17 | |||||
Purchase of treasury shares | $ | $ 72,220,000 | $ 68,493,000 | $ 8,597,000 | ||||
Common stock repurchased program, amount remained available for repurchases | $ | $ 51,134,000 | ||||||
Depositary shares issued | shares | 6,000,000 | 6,000,000 | |||||
Depositary shares, interest in corresponding series of preferred stock | 0.001 | 0.001 | |||||
Preferred stock, liquidation preference per share | $ 25,000 | ||||||
Depositary per share equivalent to liquidation preference per share | $ 25 | $ 25 | |||||
Proceeds from issuance of depositary shares | $ | $ 144,872,000 | $ 144,708,000 | |||||
Redemption description | Each Series of preferred shares may be redeemed at the Company’s option, at any time after approximately five years from original issuance, for cash at a redemption price of $25.00 per depositary share plus an amount equal to all accumulated and unpaid dividends, whether or not declared. | ||||||
Redemption price per depositary share | $ 25 | ||||||
Preferred stock shares, liquidation preference per share | $ 25,000 | ||||||
Cumulative unpaid preferred dividends | $ | $ 854,000 | ||||||
Common stock, dividends, per share, declared | $ 0.25 | ||||||
Aggregate Payment | $ | $ 12,285,000 | ||||||
Payment Date | Sep. 15, 2021 | Jun. 15, 2021 | Dec. 15, 2021 | Dec. 15, 2021 | |||
Series A Preferred Shares | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Depositary shares issued | shares | 6,000,000 | ||||||
Dividend rate | 7.00% | 7.00% | |||||
Preferred stock, par value Per Share | $ 0.01 | $ 0.01 | |||||
Preferred stock, liquidation preference per share | $ 25,000 | 25,000 | |||||
Depositary per share equivalent to liquidation preference per share | 25 | ||||||
Preferred shares redeemable date | Jun. 15, 2026 | ||||||
Preferred stock shares, liquidation preference per share | $ 25,000 | $ 25,000 | |||||
Aggregate Payment | $ | $ 2,625,000 | $ 1,808,000 | $ 2,625,000 | ||||
Series B Preferred Shares | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Depositary shares issued | shares | 6,000,000 | ||||||
Dividend rate | 6.25% | 6.25% | |||||
Preferred stock, par value Per Share | $ 0.01 | $ 0.01 | |||||
Preferred stock, liquidation preference per share | 25,000 | $ 25,000 | |||||
Depositary per share equivalent to liquidation preference per share | $ 25 | ||||||
Preferred shares redeemable date | Dec. 15, 2026 | ||||||
Preferred stock shares, liquidation preference per share | $ 25,000 | $ 25,000 | |||||
Aggregate Payment | $ | $ 2,917,000 | $ 2,917,000 | |||||
Maximum | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Common stock repurchased program, authorized amount | $ | $ 25,000,000 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Company's Board of Directors Approved and Declared Quarterly Cash Dividends (Detail) - USD ($) $ / shares in Units, $ in Thousands | Aug. 31, 2021 | May 31, 2021 | Aug. 31, 2021 | Dec. 31, 2021 | |
Class Of Stock [Line Items] | |||||
Record Date | Aug. 31, 2021 | May 31, 2021 | Dec. 3, 2021 | ||
Payment Date | Sep. 15, 2021 | Jun. 15, 2021 | Dec. 15, 2021 | Dec. 15, 2021 | |
Aggregate Payment | $ 12,285 | ||||
Series A Preferred Shares | |||||
Class Of Stock [Line Items] | |||||
Aggregate Payment | $ 2,625 | $ 1,808 | $ 2,625 | ||
Per Depositary Share Payment | [1] | $ 0.44 | $ 0.30 | $ 0.44 | |
Series B Preferred Shares | |||||
Class Of Stock [Line Items] | |||||
Aggregate Payment | $ 2,917 | $ 2,917 | |||
Per Depositary Share Payment | [1] | $ 0.49 | $ 0.49 | ||
[1] | Rounded to the nearest whole cent. |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Aug. 31, 2021 | May 31, 2021 | Feb. 28, 2022 | Aug. 31, 2021 | Dec. 31, 2021 | |
Subsequent Event [Line Items] | ||||||
Aggregate Payment | $ 12,285 | |||||
Common stock, dividends, per share, declared | $ 0.25 | |||||
Payment Date | Sep. 15, 2021 | Jun. 15, 2021 | Dec. 15, 2021 | Dec. 15, 2021 | ||
Series A Preferred Shares | ||||||
Subsequent Event [Line Items] | ||||||
Per Depositary Share Payment | [1] | $ 0.44 | $ 0.30 | $ 0.44 | ||
Aggregate Payment | $ 2,625 | $ 1,808 | $ 2,625 | |||
Series B Preferred Shares | ||||||
Subsequent Event [Line Items] | ||||||
Per Depositary Share Payment | [1] | $ 0.49 | $ 0.49 | |||
Aggregate Payment | $ 2,917 | $ 2,917 | ||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Common stock, dividends, per share, declared | $ 0.25 | |||||
Payment Date | Mar. 15, 2022 | |||||
Subsequent Event | Series A Preferred Shares | ||||||
Subsequent Event [Line Items] | ||||||
Per Depositary Share Payment | $ 0.44 | |||||
Aggregate Payment | $ 2,625 | |||||
Subsequent Event | Series B Preferred Shares | ||||||
Subsequent Event [Line Items] | ||||||
Per Depositary Share Payment | $ 0.39 | |||||
Aggregate Payment | $ 2,344 | |||||
[1] | Rounded to the nearest whole cent. |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Income (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Operating expenses: | ||||
General and administrative expense | $ 46,462 | $ 41,880 | $ 38,142 | |
Loss from operations | 430,131 | 221,599 | 222,684 | |
Other income: | ||||
Interest income | 123 | 531 | 2,505 | |
Other, net | (490) | 1,488 | (4) | |
Net other expense | (144,070) | (148,300) | (164,180) | |
Income before income tax | 286,061 | 73,299 | [1] | 58,504 |
Income tax (expense) benefit | (1,773) | 374 | (1,948) | |
Net income | 284,288 | $ 73,673 | $ 56,556 | |
Less: Dividends on preferred shares | $ (10,829) | |||
Net income attributable to common shareholders per share: | ||||
Basic | $ 5.51 | $ 1.37 | $ 0.99 | |
Diluted | $ 5.41 | $ 1.36 | $ 0.99 | |
Weighted average shares outstanding (in thousands): | ||||
Basic | 49,624 | 53,271 | 57,349 | |
Diluted | 50,576 | 53,481 | 57,459 | |
Other comprehensive income, before tax: | ||||
Change in derivative instruments designated as cash flow hedges | $ 10,986 | $ (12,307) | $ (110) | |
Reclassification of realized loss (gain) on derivative instruments designated as cash flow hedges | (8,771) | (2,806) | 7 | |
Income tax (expense) benefit related to items of other comprehensive income | (184) | 91 | ||
Comprehensive income, after tax | 303,782 | 64,440 | 56,481 | |
Less: Dividends on preferred shares | (10,829) | |||
Comprehensive income attributable to common shareholders | 292,953 | 63,589 | 56,649 | |
Parent Company | ||||
Operating expenses: | ||||
General and administrative expense | 4,519 | 3,988 | 4,089 | |
Total operating expenses | 4,519 | 3,988 | 4,089 | |
Loss from operations | (4,519) | (3,988) | (4,089) | |
Other income: | ||||
Equity in net income of subsidiaries | 289,133 | 76,076 | 60,813 | |
Interest income | 55 | 80 | ||
Other, net | (381) | 654 | ||
Net other expense | 288,807 | 76,810 | 60,813 | |
Income before income tax | 284,288 | 72,822 | 56,724 | |
Net income | 284,288 | 72,822 | 56,724 | |
Less: Dividends on preferred shares | 10,829 | |||
Net income attributable to common shareholders | $ 273,459 | $ 72,822 | $ 56,724 | |
Net income attributable to common shareholders per share: | ||||
Basic | $ 5.51 | $ 1.37 | $ 0.99 | |
Diluted | $ 5.41 | $ 1.36 | $ 0.99 | |
Weighted average shares outstanding (in thousands): | ||||
Basic | 49,624 | 53,271 | 57,349 | |
Diluted | 50,576 | 53,481 | 57,459 | |
Other comprehensive income, before tax: | ||||
Change in derivative instruments designated as cash flow hedges | $ 10,986 | $ (12,307) | $ (110) | |
Reclassification of realized loss (gain) on derivative instruments designated as cash flow hedges | 8,771 | 2,806 | (7) | |
Foreign currency translation adjustments | (79) | 177 | 42 | |
Comprehensive income, before tax | 303,966 | 63,498 | 56,649 | |
Income tax (expense) benefit related to items of other comprehensive income | (184) | 91 | ||
Comprehensive income, after tax | 303,782 | 63,589 | 56,649 | |
Less: Dividends on preferred shares | 10,829 | |||
Comprehensive income attributable to common shareholders | $ 292,953 | $ 63,589 | $ 56,649 | |
[1] | (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized gain (loss) on financial instruments, net of $4,409, $(6,044) and $(15,442) for the years ended December 31, 2021, 2020 and 2019, respectively, and debt termination expense of $15,209, $8,750 and $0 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Condensed Balance Sheets (Detai
Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||||
Cash and cash equivalents | $ 206,210 | $ 131,018 | ||
Prepaid expenses and other current assets | 14,184 | 13,713 | ||
Total current assets | 511,628 | 385,357 | ||
Total assets | 7,367,444 | 5,741,376 | $ 5,202,617 | |
Current liabilities: | ||||
Accounts payable and accrued expenses | 22,111 | 24,385 | ||
Total current liabilities | 566,166 | 685,382 | ||
Shareholders’ equity: | ||||
Common shares | 595 | 587 | ||
Treasury shares | (158,459) | (86,239) | ||
Additional paid-in capital | 428,945 | 416,609 | ||
Accumulated other comprehensive income (loss) | 9,750 | (9,744) | ||
Retained earnings | 1,200,423 | 938,395 | ||
Total Textainer Group Holdings Limited shareholders’ equity | 1,781,254 | 1,259,608 | ||
Total liabilities and equity | 7,367,444 | 5,741,376 | ||
Parent Company | ||||
Current assets: | ||||
Cash and cash equivalents | 10,696 | 12,372 | $ 5,956 | $ 9,444 |
Prepaid expenses and other current assets | 378 | 336 | ||
Due from affiliates, net | 2,231 | 2,679 | ||
Total current assets | 13,305 | 15,387 | ||
Investments in subsidiaries | 1,768,779 | 1,245,427 | ||
Total assets | 1,782,084 | 1,260,814 | ||
Current liabilities: | ||||
Accounts payable and accrued expenses | 830 | 394 | ||
Total current liabilities | 830 | 394 | ||
Shareholders’ equity: | ||||
Preferred shares | 300,000 | |||
Common shares | 595 | 587 | ||
Treasury shares | (158,459) | (86,239) | ||
Additional paid-in capital | 428,945 | 417,421 | ||
Accumulated other comprehensive income (loss) | 9,750 | (9,744) | ||
Retained earnings | 1,200,423 | 938,395 | ||
Total Textainer Group Holdings Limited shareholders’ equity | 1,781,254 | 1,260,420 | ||
Total liabilities and equity | $ 1,782,084 | $ 1,260,814 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 284,288 | $ 73,673 | $ 56,556 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Share-based compensation expense | 6,699 | 4,723 | 4,388 |
Decrease (increase) in: | |||
Prepaid expenses and other current assets | (2,577) | 1,103 | 8,693 |
Increase (decrease) in: | |||
Accounts payable and accrued expenses | (2,350) | 981 | (4,363) |
Total adjustments | 327,495 | 322,582 | 371,989 |
Net cash provided by operating activities | 611,783 | 396,255 | 428,545 |
Cash flows from investing activities: | |||
Net cash used in investing activities | (1,930,129) | (689,902) | (761,792) |
Cash flows from financing activities: | |||
Issuance of preferred shares, net of underwriting discount | 290,550 | ||
Purchase of treasury shares | (72,220) | (68,493) | (8,597) |
Issuance of common shares upon exercise of share options | 9,043 | 1,295 | 126 |
Dividends paid on common shares | (12,285) | ||
Dividends paid on preferred shares | (9,975) | ||
Other | (970) | ||
Net cash provided by financing activities | 1,395,832 | 220,730 | 386,182 |
Effect of exchange rate changes | (79) | 177 | 42 |
Cash and cash equivalents, beginning of the year | 131,018 | ||
Cash and cash equivalents, end of the year | 206,210 | 131,018 | |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 284,288 | 72,822 | 56,724 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in net income of subsidiaries | (289,133) | (76,076) | (60,813) |
Dividends received from subsidiaries | 61,000 | 76,167 | 46,823 |
Share-based compensation expense | 6,699 | 4,723 | 4,388 |
Decrease (increase) in: | |||
Prepaid expenses and other current assets | (42) | (26) | (128) |
Increase (decrease) in: | |||
Accounts payable and accrued expenses | 436 | (82) | (237) |
Total adjustments | (221,040) | 4,706 | (9,967) |
Net cash provided by operating activities | 63,248 | 77,528 | 46,757 |
Cash flows from investing activities: | |||
Investments in subsidiaries | (269,436) | (2,050) | (41,865) |
Net cash used in investing activities | (269,436) | (2,050) | (41,865) |
Cash flows from financing activities: | |||
Issuance of preferred shares, net of underwriting discount | 290,550 | ||
Purchase of treasury shares | (72,220) | (68,493) | (8,597) |
Issuance of common shares upon exercise of share options | 9,043 | 1,295 | 126 |
Dividends paid on common shares | (12,285) | ||
Dividends paid on preferred shares | (9,975) | ||
Due to (from) affiliates, net | 448 | (2,041) | 49 |
Other | (970) | ||
Net cash provided by financing activities | 204,591 | (69,239) | (8,422) |
Effect of exchange rate changes | (79) | 177 | 42 |
Net (decrease) increase in cash and cash equivalents | (1,676) | 6,416 | (3,488) |
Cash and cash equivalents, beginning of the year | 12,372 | 5,956 | 9,444 |
Cash and cash equivalents, end of the year | $ 10,696 | $ 12,372 | $ 5,956 |
Valuation Accounts (Detail)
Valuation Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts receivable, allowance for doubtful accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 2,663 | $ 6,299 | $ 5,729 |
Additions Charged to Expense (Recovery) | (674) | (3,149) | 2,096 |
Deductions Credited and Write-Offs | (699) | (487) | (1,526) |
Balance at End of Year | 1,290 | 2,663 | 6,299 |
Net investment in finance leases, allowance for credit losses | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 1,333 | 636 | |
Additions Charged to Expense (Recovery) | (590) | 697 | |
Balance at End of Year | 743 | 1,333 | 636 |
Container leaseback financing receivable, allowance for credit losses | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 424 | 256 | |
Additions Charged to Expense (Recovery) | (311) | 168 | |
Balance at End of Year | $ 113 | $ 424 | $ 256 |