Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 08, 2017 | Jun. 30, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | Triton International Ltd | ||
Entity Central Index Key | 1,660,734 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Common Stock, Shares Outstanding | 74,497,727 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS: | ||
Leasing equipment, net of accumulated depreciation of $1,787,505 and $1,566,963 | $ 7,370,519 | $ 4,362,043 |
Net investment in finance leases, net of allowances of $527 and $526 | 346,810 | 66,656 |
Equipment held for sale | 99,863 | 0 |
Revenue earning assets | 7,817,192 | 4,428,699 |
Cash and cash equivalents | 113,198 | 56,689 |
Restricted cash | 50,294 | 22,575 |
Accounts receivable, net of allowances of $28,082 and $8,297 | 173,585 | 110,970 |
Goodwill | 236,665 | 0 |
Lease intangibles, net of accumulated amortization of $56,159 | 246,598 | 0 |
Insurance receivable | 17,170 | 0 |
Other assets | 53,126 | 37,911 |
Fair value of derivative instruments | 5,743 | 2,153 |
Total assets | 8,713,571 | 4,658,997 |
LIABILITIES AND SHAREHOLDERS' EQUITY: | ||
Equipment purchases payable | 83,567 | 12,128 |
Fair value of derivative instruments | 9,404 | 257 |
Accounts payable and other accrued expenses | 143,098 | 81,306 |
Net deferred income tax liability | 317,316 | 20,570 |
Debt, net of unamortized deferred financing costs of $19,999 and $19,024 | 6,353,449 | 3,166,903 |
Total liabilities | 6,906,834 | 3,281,164 |
Shareholders' equity: | ||
Common shares | 744 | 0 |
Additional paid-in capital | 690,418 | 176,088 |
Accumulated earnings | 945,313 | 1,044,402 |
Accumulated other comprehensive income (loss) | 26,758 | (3,666) |
Total shareholders' equity | 1,663,233 | 1,217,329 |
Non-controlling interests | 143,504 | 160,504 |
Total equity | 1,806,737 | 1,377,833 |
Total liabilities and shareholders' equity | 8,713,571 | 4,658,997 |
Common Class A [Member] | ||
Shareholders' equity: | ||
Common shares | 0 | 445 |
Total equity | 0 | 445 |
Common Class B [Member] | ||
Shareholders' equity: | ||
Common shares | 0 | 60 |
Total equity | 0 | 60 |
Undesignated Common Stock [Member] | ||
Shareholders' equity: | ||
Common shares | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Leasing Equipment, Accumulated Depreciation and Allowances | $ 1,787,505 | $ 1,566,963 |
Net Investment in Finance Leases, Allowances | 527 | 526 |
Accounts Receivable, Allowances | 28,082 | 8,297 |
Debt, Unamortized Deferred Financing Costs | 19,999 | 19,024 |
Lease intangibles, Accumulated Amortization | 56,159 | 0 |
Common Stock, Value, Issued | $ 744 | $ 0 |
Common stock, shares issued (in shares) | 74,376,025 | 0 |
Common Class B [Member] | ||
Common Stock, Value, Issued | $ 0 | $ 60 |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 4,800,000 | |
Common stock, shares issued (in shares) | 4,800,000 | |
Common Class A [Member] | ||
Common Stock, Value, Issued | $ 0 | $ 445 |
Common stock, par value (in dollars per share) | $ 0 | $ 0.01 |
Common stock, shares authorized (in shares) | 0 | 235,200,000 |
Common stock, shares issued (in shares) | 0 | 35,628,585 |
Designated Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0 |
Common stock, shares authorized (in shares) | 294,000,000 | 0 |
Undesignated Common Stock [Member] | ||
Common Stock, Value, Issued | $ 0 | $ 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0 |
Common stock, shares authorized (in shares) | 6,000,000 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leasing revenues: | |||
Operating leases | $ 813,357 | $ 699,810 | $ 699,188 |
Finance leases | 15,337 | 8,029 | 8,027 |
Total leasing revenues | 828,694 | 707,839 | 707,215 |
Equipment trading revenues | 16,418 | 0 | 0 |
Equipment trading expenses | (15,800) | 0 | 0 |
Trading margin | 618 | 0 | 0 |
Net (loss) gain on sale of leasing equipment | (20,347) | 2,013 | 31,616 |
Operating expenses: | |||
Depreciation and amortization | 392,592 | 300,470 | 258,489 |
Direct operating expenses | 84,256 | 54,440 | 58,014 |
Administrative expenses | 65,618 | 53,435 | 55,659 |
Transaction and other costs | 66,916 | 22,185 | 30,477 |
Provision (reversal) for doubtful accounts | 23,304 | (2,156) | 1,324 |
Total operating expenses | 632,686 | 428,374 | 403,963 |
Operating income | 176,279 | 281,478 | 334,868 |
Other expenses: | |||
Interest and debt expense | 184,014 | 140,644 | 137,370 |
Realized loss on derivative instruments, net | 3,438 | 5,496 | 9,385 |
Unrealized (gain) loss on derivative instruments, net | (4,405) | 2,240 | 3,798 |
Write-off of deferred financing costs | 141 | 1,170 | 7,468 |
Other (income) expense | (1,076) | 211 | (689) |
Total other expenses | 182,112 | 149,761 | 157,332 |
(Loss) income before income taxes | (5,833) | 131,717 | 177,536 |
Income tax (benefit) expense | (48) | 4,048 | 6,232 |
Net (loss) income | (5,785) | 127,669 | 171,304 |
Less: income attributable to non-controlling interest | 7,732 | 16,580 | 21,837 |
Net (loss) income attributable to shareholders | $ (13,517) | $ 111,089 | $ 149,467 |
Net (loss) income per common share—Basic | $ (0.24) | $ 2.75 | $ 3.73 |
Net (loss) income per common share—Diluted | (0.24) | 2.71 | 3.52 |
Cash dividends paid per common share | $ 1.35 | $ 0 | $ 5.38 |
Weighted average number of common shares and non-voting common shares outstanding—Basic | 56,032 | 40,429 | 40,021 |
Dilutive stock options and restricted stock | 0 | 503 | 2,437 |
Weighted average number of common shares and non-voting common shares outstanding—Diluted | 56,032 | 40,932 | 42,458 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||
Other expenses: | |||
Unrealized (gain) loss on derivative instruments, net | $ (4,405) | $ 2,240 | $ 3,798 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net (loss) income | $ (5,785) | $ 127,669 | $ 171,304 |
Other comprehensive (loss) income: | |||
Change in fair value of derivative instruments designated as cash flow hedges (net of income tax effect of $16,512) | 30,405 | 0 | 0 |
Accumulated other comprehensive income (loss) | 26,758 | (3,666) | |
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges (net of income tax effect of $423) | 777 | 0 | 0 |
Foreign currency translation adjustment | (758) | (408) | (659) |
Other comprehensive income, net of tax | 24,639 | 127,261 | 170,645 |
Net Income (Loss) Attributable to Noncontrolling Interest | (7,732) | (16,580) | (21,837) |
Comprehensive income | 16,907 | 110,681 | 148,808 |
Accumulated Other Comprehensive (Loss) Income | |||
Other comprehensive (loss) income: | |||
Change in fair value of derivative instruments designated as cash flow hedges (net of income tax effect of $16,512) | 30,405 | ||
Accumulated other comprehensive income (loss) | 26,758 | (3,666) | $ (3,258) |
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges (net of income tax effect of $423) | 777 | ||
Foreign currency translation adjustment | (758) | (408) | |
Other comprehensive income, net of tax | $ 30,424 | $ (408) |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Change in Fair Value Derivative Instruments Designated as Cash Flow Hedges, Income Tax Effect | $ 16,512 | $ 0 | $ 0 |
Reclassification of Realized Loss on Interest Rate Swap Agreements Designated as Cash Flow Hedges, Income Tax Effect | $ 423 | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Cash Flow Hedges | Foreign Currency Translation | Comprehensive Income [Member] | Noncontrolling Interest [Member] | Common Class A [Member] | Common Class B [Member] | Triton [Member]Common Stock [Member] | Triton [Member]Common Stock [Member] |
Net Income (Loss) Attributable to Noncontrolling Interest | $ 21,837 | |||||||||||
Beginning balance, shares at Dec. 31, 2013 | 0 | 35,208,444 | 4,800,000 | |||||||||
Beginning balance at Dec. 31, 2013 | 1,360,975 | $ 0 | $ 156,852 | $ 998,846 | $ 0 | $ (2,599) | $ (2,599) | $ 207,376 | $ 440 | $ 60 | ||
Issuance of common shares (in shares) | 13,171.2 | |||||||||||
Share based compensation (in shares) | 0 | |||||||||||
Share based compensation | 18,686 | $ 0 | 18,686 | 0 | ||||||||
Net (loss) | 149,467 | 21,837 | ||||||||||
Net Income (Loss) Attributable to Parent | 171,304 | |||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (659) | (659) | ||||||||||
Change in fair value of derivative instruments designated as cash flow hedges | 0 | |||||||||||
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges | 0 | |||||||||||
Purchase of non-controlling interest | (70) | 67 | (137) | |||||||||
Distributions to non-controlling interest | (38,225) | |||||||||||
Common shares dividends declared | (215,000) | |||||||||||
Ending balance, shares at Dec. 31, 2014 | 0 | 35,221,615 | 4,800,000 | |||||||||
Ending balance at Dec. 31, 2014 | 1,297,011 | $ 0 | 175,605 | 933,313 | 0 | (3,258) | (3,258) | 190,851 | $ 440 | $ 60 | ||
Net Income (Loss) Attributable to Noncontrolling Interest | 16,580 | |||||||||||
Issuance of common shares (in shares) | 0 | 406,970.4 | ||||||||||
Issuance of common shares | 0 | $ 0 | (5) | $ 5 | ||||||||
Share based compensation (in shares) | 0 | |||||||||||
Share based compensation | 12,048 | $ 0 | 12,048 | |||||||||
Share repurchase to settle shareholder tax obligations | (5,388) | |||||||||||
Liability classified service-based share options | (6,172) | (6,172) | ||||||||||
Net (loss) | 111,089 | 16,580 | ||||||||||
Net Income (Loss) Attributable to Parent | 127,669 | |||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (408) | (408) | ||||||||||
Change in fair value of derivative instruments designated as cash flow hedges | 0 | |||||||||||
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges | 0 | |||||||||||
Distributions to non-controlling interest | (46,927) | |||||||||||
Ending balance, shares at Dec. 31, 2015 | 0 | 35,628,585 | 4,800,000 | |||||||||
Ending balance at Dec. 31, 2015 | 1,377,833 | $ 0 | 176,088 | 1,044,402 | 0 | (3,666) | (3,666) | 160,504 | $ 445 | $ 60 | ||
Net Income (Loss) Attributable to Noncontrolling Interest | 7,732 | |||||||||||
Issuance of common shares (in shares) | 465,097 | 140,237 | ||||||||||
Issuance of common shares | 5 | $ 5 | (2) | $ 2 | ||||||||
Share based compensation | 5,399 | 5,399 | ||||||||||
Adjustment to fair market value classified service-based options | (907) | (907) | ||||||||||
Settlement of liability classified service-based share options (in shares) | 517,912 | |||||||||||
Settlement of liability classified service-based share options | 7,080 | 7,075 | $ 5 | |||||||||
Share repurchase to settle shareholder tax obligations (in shares) | (14,290) | (232,715) | ||||||||||
Share repurchase to settle shareholder tax obligations | (3,393) | (3,175) | (216) | $ (2) | ||||||||
Redemption / Cancellation of common shares (in shares) | (230,857) | (32,536) | ||||||||||
Redemption / Cancellation of common shares | (4,017) | $ (3) | (4,014) | |||||||||
Net Income (Loss) Attributable to Parent | (5,785) | |||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (758) | (758) | ||||||||||
Issuance and conversion of Triton shares due to Merger (in shares) | (36,021,483.4) | (4,800,000) | 74,156,075 | |||||||||
Issuance and conversion of Triton shares due to Merger | 510,186 | 509,954 | $ (450) | $ (60) | $ 742 | |||||||
Change in fair value of derivative instruments designated as cash flow hedges | 30,405 | 30,405 | 0 | 30,405 | ||||||||
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges | 777 | 777 | 0 | 777 | ||||||||
Distributions to non-controlling interest | (24,732) | |||||||||||
Common shares dividends declared | (85,356) | |||||||||||
Ending balance, shares at Dec. 31, 2016 | 74,376,025 | 0 | 0 | |||||||||
Ending balance at Dec. 31, 2016 | $ 1,806,737 | $ 744 | $ 690,418 | $ 945,313 | $ 31,182 | $ (4,424) | $ 26,758 | $ 143,504 | $ 0 | $ 0 |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Change in Fair Value Derivative Instruments Designated as Cash Flow Hedges, Income Tax Effect | $ 16,512 | $ 0 | $ 0 |
Reclassification of Realized Loss on Interest Rate Swap Agreements Designated as Cash Flow Hedges, Income Tax Effect | 423 | 0 | 0 |
Amortization of net loss on terminated derivative instruments designated as cash flow hedges, net of income tax effect of | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Cash flows from operating activities: | |||
Net (loss) income | $ (5,785) | $ 127,669 | $ 171,304 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 392,592 | 300,470 | 258,489 |
Amortization and write-off of deferred financing costs and other debt related amortization | 6,075 | 6,844 | 13,938 |
Amortization of Intangible Assets | 55,484 | 0 | 0 |
Net (gain) on sale of leasing equipment | 20,347 | (2,013) | (31,616) |
Unrealized (gain) loss on derivative instruments, net | (4,405) | 2,240 | 3,798 |
Deferred income taxes | (809) | 3,353 | 4,134 |
Stock compensation charge | 5,399 | 12,048 | 18,686 |
Changes in operating assets and liabilities: | |||
Net equipment sold for resale activity | 4,031 | 0 | 0 |
Accounts receivable | 10,111 | 5,494 | 131 |
Accounts payable and other accrued expenses | 10,694 | (2,768) | (2,885) |
Other assets | (9,509) | (2,814) | (2,548) |
Net cash provided by operating activities | 484,188 | 449,304 | 432,374 |
(Payments) Receipts to Terminate Derivatives | (37) | (1,219) | (1,057) |
Cash flows from investing activities: | |||
Purchases of leasing equipment and investments in finance leases | (629,332) | (398,799) | (809,446) |
Proceeds from sale of equipment, net of selling costs | 145,572 | 171,719 | 195,282 |
Cash collections on finance lease receivables, net of income earned | 38,650 | 14,178 | 14,660 |
Cash Acquired from Acquisition | 50,349 | 0 | 0 |
Other | (685) | (2,819) | (3,182) |
Net cash (used in) investing activities | (395,446) | (215,721) | (602,686) |
Cash flows from financing activities: | |||
Net increase (decrease) in unrestricted cash and cash equivalents | 56,509 | (8,918) | 1,514 |
Unrestricted cash and cash equivalents, beginning of period | 56,689 | 65,607 | 64,093 |
Unrestricted cash and cash equivalents, end of period | 113,198 | 56,689 | 65,607 |
Payments for Repurchase of Common Stock | (7,410) | 0 | 0 |
Financing fees paid under debt facilities | (6,554) | (2,972) | (4,845) |
Borrowings under debt facilities | 661,971 | 685,500 | 1,622,075 |
Payments under debt facilities and capital lease obligations | (602,152) | (886,979) | (1,209,377) |
Decrease in restricted cash | 31,396 | 8,877 | 17,268 |
Payments for Repurchase of Redeemable Noncontrolling Interest | 0 | 0 | (70) |
Payments to Noncontrolling Interests | (24,732) | (46,927) | (38,225) |
Common stock dividends paid | (84,752) | 0 | (215,000) |
Net cash provided by financing activities | (32,233) | (242,501) | 171,826 |
Supplemental disclosures: | |||
Interest paid | 181,559 | 131,749 | 132,214 |
Income taxes paid | 309 | 1,477 | 1,552 |
Supplemental non-cash investing activities: | |||
Equipment purchases payable | 83,567 | 12,128 | 109,949 |
Business Combination, Contingent Consideration, Asset | 510,186 | 0 | 0 |
Additional Paid-in Capital [Member] | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock compensation charge | $ 5,399 | $ 12,048 | $ 18,686 |
Business and Basis of Presentat
Business and Basis of Presentation (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | Note 1—Description of the Business and Basis of Presentation Description of the Business and Basis of Presentation On July 12, 2016, Triton Container International Limited ("TCIL") and TAL International Group, Inc. ("TAL") combined in an all-stock merger (the "Merger"). Under the terms of the transaction agreement, TCIL and TAL combined under a newly formed company, Triton International Limited ("Triton" or the "Company"). Immediately following the completion of the Merger, former TCIL shareholders owned approximately 55% of the outstanding equity of the Company and former TAL stockholders owned approximately 45% of the outstanding equity of the Company. The consolidated financial statements of Triton presented herein represent the historical financial statements of TCIL, the accounting acquirer, and include the results of operations of TAL after July 12, 2016, the date of the completion of the Merger. The consolidated financial statements include the accounts of the Company and its subsidiaries. Certain reclassifications have been made to the accompanying prior period financial statements and notes to conform to the current year's presentation. Triton, through its subsidiaries, leases intermodal transportation equipment, primarily maritime containers, and provides maritime container management services through a worldwide network of service subsidiaries, third-party depots and other facilities. The majority of Triton’s business is derived from leasing its containers to shipping line customers through a variety of long-term and short-term contractual lease arrangements. Triton also sells its own containers and containers purchased from third parties and operates and manages containers pursuant to agreements with third party container owners. These agreements govern the operations and management of the containers and allocation of the proceeds therefrom. The Company's registered office is located at 22 Victoria Street, Hamilton HM12, Bermuda. |
Summary of Significant Accounti
Summary of Significant Accounting Policies Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries and subsidiaries in which it has a controlling interest. The Company has a controlling interest in Triton Container Investments LLC, (“TCI”) and TCI’s wholly owned subsidiaries, Triton Container Finance IV LLC, (“TCF-IV”). TCI is not considered a variable interest entity because i) TCI’s total equity investment at risk is sufficient to permit the entity to finance its activities without additional subordinated financial support; ii) the non-Company investors (the “TCI investors”) lack the characteristics of a controlling financial interest; iii) the voting rights of the TCI investors are not disproportional; and iv) substantially all of TCI’s activities are not conducted on behalf of an investor who has disproportionately few voting rights. TCI is consolidated into the Company because TCIL, one of the Company’s wholly owned subsidiaries contributed more than 50% of TCI’s consolidated members’ capital and controls TCI’s operations as its manager. While TCIL as manager is limited by the Operating Agreement and cannot take certain actions that are inconsistent with the purpose of TCI or actions including acquiring equity or debt securities, selling or disposing of a material portion of TCI’s property in a single transaction, making capital expenditures in excess of $1 million, other than the purchase of new containers, and causing TCI to institute a proceeding seeking liquidation, the TCI investors do not have the substantive ability to dissolve TCI or otherwise remove TCIL as manager without cause and do not have substantive participating rights. Non-controlling interests included in the Company’s consolidated financial statements are comprised of (i) the amount of the initial investment made by the TCI investors, plus or minus (ii) the profits and/or losses allocated to the TCI investors pursuant to the terms of TCI’s limited liability company operating agreement (the “Operating Agreement”), plus or minus (iii) additional cash contributions made by and/or cash distributions received by the TCI investors. The income allocated to the TCI investors is determined based on a formula contained in the Operating Agreement and amounts allocated to non-controlling interests will vary based on the operating performance of the containers and the sale proceeds from the containers once the containers are retired from the fleet. Consolidated income tax expense is calculated based upon income attributable to the Company and, accordingly excludes income tax on the income attributable to the TCI investors, which is the responsibility of the owners of such interests. The Company held membership interests in TCI representing 53.4% and 51.7% of TCI’s total members’ capital as of December 31, 2016 and 2015 , respectively. The equity method of accounting is applied when the Company does not have a controlling interest in an entity but exerts significant influence over the entity. All significant intercompany balances and transactions have been eliminated in consolidation. Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents consist of all cash balances and highly liquid investments having original maturities of three months or less at the time of purchase. Note 2—Summary of Significant Accounting Policies (Continued) Allowance for Doubtful Accounts The Company's allowance for doubtful accounts is provided based upon a review of the collectibility of its receivables. This review is based on the risk profile of the receivables, credit quality indicators such as the level of past-due amounts, and economic conditions. Generally, the Company does not require collateral on accounts receivable balances. An account is considered past due when a payment has not been received in accordance with the contractual terms. Changes in economic conditions or other events may necessitate additions or deductions to the allowance for doubtful accounts. The allowance for doubtful accounts is intended to provide for losses in the receivables, and requires the application of estimates and judgments as to the outcome of collection efforts and the realization of collateral, among other things. The Company believes its allowance for doubtful accounts is adequate to provide for credit losses inherent in its existing receivables. When a customer becomes insolvent, the Company evaluates the collectibility of receivables, and provides an allowance for amounts deemed to be uncollectible and also assesses the recoverability of the on-lease containers and associated recovery costs. To the extent amounts are expected to be recoverable from insurance policies, the Company records a receivable based on amounts incurred not to exceed insurance limits. A loss would be recorded if expected recoveries are less than book value of the containers. Any amounts expected to be recovered for lost revenue are not recorded until received from insurance carriers. On August 31, 2016, Hanjin Shipping Co. ("Hanjin"), a lessee of the Company, filed for court protection and immediately began a liquidation process. At that time, we had approximately 87,000 container units on lease to Hanjin with a net book value of $243.3 million . The Company maintains credit insurance to cover the value of such containers that are unrecoverable, costs incurred to recover containers and a portion of lost lease revenue, (limited up to six months or until a container is recovered, repaired, and available for re-lease) all subject to a deductible. In connection with the Hanjin bankruptcy, the Company has recorded a charge of $29.7 million during the third quarter ended September 30, 2016 comprised of bad debt expense and a charge for costs not expected to be recovered due to deductible limits. Upon the announcement of the Hanjin bankruptcy, the Company ceased recognizing revenue from the customer which amounted to $15.9 million during the year ended December 31, 2016 . A portion of this lost revenue has been applied towards the deductible under the policies. The Company has recorded a receivable under its insurance policies of approximately $17.2 million since the deductible has been achieved. At the present time, the Company believes the anticipated losses as a result of Hanjin will be recoverable under the insurance policies, subject to the deductible limits. The Company estimates that a large portion of its equipment will ultimately be recovered, and this estimate has been considered into the estimated loss described above. Concentration of Credit Risk The Company's equipment lease and trade receivables subject it to potential credit risk. The Company extends credit to its customers based upon an evaluation of each customer's financial condition and credit history. Evaluations of the financial condition and associated credit risk of customers are performed on an ongoing basis. The Company's largest customer is CMA CGM, which accounted for 17% of the Company's lease billings and 23% of the accounts receivable in 2016 and its second largest customer, Mediterranean Shipping Company, accounted for 15% of lease billings and 7% of the accounts receivable in 2016 . Mediterranean Shipping Company accounted for 17% and 16% of the Company's leasing revenues in 2015 and 2014 , respectively. Intangible assets Intangible assets with finite useful lives such as acquired lease intangibles and customer relationships are initially recorded at fair value and are amortized over their respective estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. We recorded no impairment charges related to intangibles during the years ended December 31, 2016, 2015 and 2014. Net Investment in Finance Leases The Company has entered into various rental agreements that qualify as direct financing leases or sales-type leases. These leases are usually long-term in nature, typically ranging for a period of three to ten years, and typically include an option to purchase the equipment at the end of the lease term at a bargain purchase price. At the inception of a direct financing lease or a sales-type lease, a net investment is recorded based on the gross investment (representing the total future minimum lease payments due under the lease plus the estimated residual value), net of unearned income. Note 2—Summary of Significant Accounting Policies (Continued) For a direct financing lease, unearned income represents the excess of the gross investment over the net book value of the leased equipment at lease inception. For a sales-type lease, unearned income represents the excess of the gross investment over the fair value of the leased equipment (calculated as the present value of both the total future minimum lease payments due under the lease and the estimated residual value) at lease inception. At the inception of a sales-type lease, gain (loss) is defined as the difference between (i) the net investment in the lease and (ii) the net book value of the subject containers on the Company’s books at the commencement of the lease. Leasing Equipment In general, the Company purchases new equipment from equipment manufacturers for the purpose of leasing such equipment to customers. The Company also purchases used equipment with the intention of selling such equipment in one or more years from the date of purchase. Used units are typically purchased with an existing lease in place or were previously owned by one of Triton's third party owner investors. Leasing equipment is recorded at cost and depreciated to an estimated residual value on a straight-line basis over their estimated useful lives. Capitalized costs for new container rental equipment generally include the manufactured cost of the container, inspection, delivery, and associated costs incurred in moving the container from the manufacturer to the initial on-hire location of such container. Repair and maintenance costs that do not extend the lives of the container rental equipment are charged to direct operating expenses at the time the costs are incurred. The estimated useful lives and residual values of the Company's leasing equipment are based on historical disposal experience and the Company's expectations for future used container sale prices. The Company reviews its depreciation policies on a regular basis to determine whether changes have taken place that would suggest that a change in its depreciation policies, useful lives of its equipment or the assigned residual values is warranted. Effective October 1, 2015, after conducting its regular depreciation policy review during the fourth quarter, the Company reduced the estimated residual values for 40-foot dry containers from $1,300 to $1,200 and for 40-foot high cube dry containers from $1,700 to $1,400 . In addition, the Company revised the useful life estimates for its 20-foot dry containers, 40-foot dry containers and 40-foot high cube dry containers from 12 years to 13 years effective October 1, 2015. Depreciation expense would have been lower by $1.8 million (and $0.05 per diluted share) during the year ended December 31, 2015, had the Company not made these changes in estimates. The estimated useful lives and residual values for each major equipment type for the periods as indicated below were as follows: January 1, 2015 to September 30, 2015 October 1, 2015 to December 31, 2016 Equipment Type Depreciable Life Residual Value Depreciable Life Residual Value Dry containers 20-foot dry container 12 years $ 1,000 13 years $ 1,000 40-foot dry container 12 years $ 1,300 13 years $ 1,200 40-foot high cube dry container 12 years $ 1,700 13 years $ 1,400 Refrigerated containers 20-foot refrigerated container 12 years $ 2,250 12 years $2,250 to $2,500 40-foot high cube refrigerated container 12 years $ 3,250 12 years $3,250 to $3,500 Special containers 40-foot flat rack container 12 years $ 3,000 12 to 14 years $1,500 to $3,000 40-foot open top container 12 years $ 2,500 12 to 14 years $2,300 to $2,500 Tank containers N/A N/A 20 years $ 3,000 Chassis N/A N/A 20 years $ 1,200 Depreciation on leasing equipment starts on the date of initial on-hire. For leasing equipment acquired through sale-leaseback transactions, the Company adjusts its estimates for remaining useful life and residual values based on current conditions in the sale market for older containers and the Company's expectations for how long the equipment will remain on-hire to the current lessee. Note 2—Summary of Significant Accounting Policies (Continued) The net book value of the Company's leasing equipment by equipment type as of the dates indicated was (in thousands): December 31, 2016 December 31, 2015 Dry container units $ 4,839,648 $ 2,743,150 Refrigerated container units 2,037,952 1,497,100 Special container units 265,666 121,793 Tank container units 107,933 — Chassis 119,320 — Total $ 7,370,519 $ 4,362,043 Included in the amounts above are units not on lease at December 31, 2016 and 2015 with a total net book value of $524.9 million and $319.3 million , respectively. Amortization on equipment purchased under capital lease obligations is included in depreciation and amortization expense in the consolidated statements of operations. Valuation of long-lived assets - leasing equipment The carrying value of leasing equipment is reviewed for impairment whenever changes in circumstances indicate that the carrying amounts may not be recoverable. If indicators of impairment are present, a determination is made as to whether the carrying value of Triton's fleet exceeds its estimated future undiscounted cash flows. Key indicators of impairment on leasing equipment include, among other factors, a sustained decrease in operating profitability, a sustained decrease in utilization, or indications of technological obsolescence. The Company evaluated these indicators in its annual 2016 impairment analysis and concluded that there was no impairment on the leasing equipment fleet. When testing for impairment, leasing equipment is generally grouped by equipment type, and is tested separately from other groups of assets and liabilities. Some of the significant estimates and assumptions used to determine future undiscounted cash flows and the measurement for impairment are the remaining useful life, expected utilization, expected future lease rates and expected disposal prices of the equipment. The Company considers the assumptions on expected utilization and the remaining useful life to have the greatest impact on its estimate of future undiscounted cash flows. These estimates are principally based on the Company's historical experience and management's judgment of market conditions. An impairment charge is taken when the carrying amount of the leasing equipment asset group exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposal of the equipment. For the years ended December 31, 2016 and 2015, the Company recorded $13.1 million and $7.2 million , respectively, of impairment charges to depreciation expense related to leasing equipment that was not expected to be re-leased. There were no impairment charges for the year ended December 31, 2014. Equipment Held for Sale When leasing equipment is returned off lease, the Company makes a determination of whether to repair and re-lease the equipment or sell the equipment. At the time the Company determines that equipment will be sold, it reclassifies the appropriate amounts previously recorded as leasing equipment to equipment held for sale. In accordance with FASB Accounting Standards Codification No. 360, Property, Plant and Equipment ("ASC 360"), equipment held for sale is carried at the lower of its estimated fair value, based on current transactions, less costs to sell, or carrying value; depreciation on such assets is halted and disposals generally occur within 90 days. Subsequent changes to the fair value of those assets, either increases or decreases, are recorded as adjustments to the carrying value of the equipment held for sale; however, any such adjustments may not exceed the respective equipment's carrying value at the time it was initially classified as held for sale. Initial write downs of assets held for sale are recorded as an impairment charge and are included in net gain or loss on sale of leasing equipment. Realized gains and losses resulting from the sale of equipment held for sale are recorded as net gain or loss on sale of leasing equipment, and cash flows associated with the disposal of equipment held for sale are classified as cash flows from investing activities. Subsequent to the completion of the Merger, Triton management committed to a plan to sell certain idle equipment and therefore, the carrying value of this group of equipment was re-classified to assets for sale. Triton acquired the Equipment trading segment as part of the Merger on July 12, 2016 and had no such reporting segment prior to that time. Equipment purchased for resale and included in the Equipment Trading Segment is reported as equipment held for sale when the time frame between when equipment is purchased and when it is sold is expected to be short, less than one year. Note 2—Summary of Significant Accounting Policies (Continued) During the years ended December 31, 2016 , 2015 , and 2014 , the Company recorded the following net losses or gains on sale of leasing equipment held for sale in the consolidated statements of operations: (in thousands) 2016 2015 2014 Impairment (loss) on equipment held for sale $ (19,399 ) $ — $ — (Loss) gain on sale of equipment-net of selling costs (948 ) 2,013 31,616 Net (loss) gain on sale of leasing equipment $ (20,347 ) $ 2,013 $ 31,616 Property, Furniture and Equipment Costs of major additions of property, furniture, equipment and improvements are capitalized and are included in other assets on the consolidated balance sheets. The original cost is depreciated on a straight-line basis over the estimated useful lives of such property, furniture and equipment. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated useful lives of the leased assets. Other fixed assets, which consist primarily of computer software and hardware, are recorded at cost and amortized on a straight-line basis over their respective estimated useful lives, which range from three to seven years. Expenditures for maintenance and repairs are expensed as they are incurred. Allocation of Acquisition Purchase Price to Assets Acquired and Liabilities Assumed The Company has accounted for the Merger described above under the acquisition method of accounting in accordance with the FASB Accounting Standards Topic No. 805, Business Combinations (“ASC No. 805”). TCIL has been treated as the acquirer in the Merger for accounting purposes. In making the determination of the accounting acquirer, TCIL considered all pertinent information and facts related to the combined entity as identified by ASC No. 805-10-55-12 to 15, which included relative voting rights, presence of a large minority interest, composition of the Board of Directors and senior management, terms of the exchange of equity interests, and relative size. In the aggregate, it was concluded that factors such as the former TCIL shareholders’ 55% voting rights in the combined entity, after considering certain voting limitations, the presence of a large minority voting interest concentrated within the former Company TCIL shareholders and the relative size of TCIL in relation to TAL, indicated that TCIL should be the accounting acquirer. Triton has finalized its allocation of the purchase price to the fair value of the TAL assets acquired and liabilities assumed. The purchase price allocation has been developed based on estimates of fair value using the historical financial statements of TAL as of July 12, 2016. In addition, the allocation of the purchase price to acquired tangible and intangible assets is based on fair value estimates and with the assistance of third-party valuation advisers. Goodwill The Company accounts for goodwill in accordance with FASB Accounting Standards Codification No. 350, Intangibles—Goodwill and Other ("ASC 350"). ASC 350 requires goodwill and other intangible assets with indefinite lives to be reviewed for impairment annually, or more frequently if circumstances indicate a possible impairment. In connection with the acquisition of TAL that occurred in 2016, the Company recorded $236.7 million of goodwill. Management determined that subsequent to the acquisition of TAL, the Company has two reporting units, Equipment leasing and Equipment trading, and allocated $220.9 million and $15.8 million , respectively, to each reporting unit. The Company has elected to bypass the qualitative approach permitted under ASC 350 for testing goodwill for impairment, but may elect to perform the qualitative approach to test goodwill for impairment in future periods. Under the two step approach, the estimated fair value of the reporting unit is first compared with its carrying value (including goodwill). If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the estimated fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation in acquisition accounting. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Note 2—Summary of Significant Accounting Policies (Continued) The annual impairment test is conducted by comparing the reporting unit's carrying amount to its fair value. If the carrying value of the entity exceeds its fair value, then a second step would be performed that compares the implied fair value of goodwill with the carrying amount. The determination of the implied fair value of goodwill requires management to allocate the estimated fair value of the reporting units to its assets and liabilities in a manner similar. Any excess fair value represents the implied fair value of goodwill. To the extent that the carrying amount of goodwill exceeds its implied fair value, an impairment loss would be recorded. Fair value of the reporting unit under the two-step assessment is determined using a combination of discounted cash flow approach and a market capitalization approach, inclusive of an estimated control premium. The key assumptions applied to the cash flow projections were discount rates, new container prices, near-term revenue growth rates, and perpetual growth rates. These assumptions contemplated business, market and overall economic conditions. Based on the results of this testing, the Company determined that the fair value of each of its reporting units exceeded its respective carrying amount and that no impairment of goodwill existed. Fair Value Measurements The Company believes that the carrying amounts of its cash and cash equivalents, accounts receivable, equipment purchases payable, and accounts payable approximated their fair value as of December 31, 2016 and December 31, 2015 . Fair value represents the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes the following fair value hierarchy when selecting inputs for its valuation techniques, with the highest priority given to Level 1: • Level 1—Financial assets and liabilities whose values are based on observable inputs such as quoted prices for identical instruments in active markets (unadjusted). • Level 2—Financial assets and liabilities whose values are based on observable inputs such as (i) quoted prices for similar instruments in active markets; (ii) quoted prices for identical or similar instruments in markets that are not active; or (iii) model-derived valuations in which all significant inputs are observable in active markets. • Level 3—Financial assets and liabilities whose values are derived from valuation techniques based on one or more significant unobservable inputs. The Company does not measure debt, net of unamortized deferred financing costs at fair value in its consolidated balance sheets. The fair value, which was measured using Level 2 inputs, and the carrying value of the Company's debt are listed in the table below as of December 31, 2016 and December 31, 2015 (in thousands). December 31, 2016 December 31, 2015 Liabilities Total Debt(1) - carrying value $ 6,373,448 $ 3,185,927 Total Debt(1) - estimated fair value $ 6,316,229 $ 3,256,284 _______________________________________________________________________________ (1) Excludes unamortized deferred financing costs of $20.0 million and $19.0 million as of December 31, 2016 and December 31, 2015 , respectively. We determine fair value of Equipment held for sale, by reference to recent sales prices and other factors. An impairment charge is recorded when the carrying value of the asset exceeds its fair value. The following table summarizes the Company’s assets measured at fair value on a non-recurring basis which was measured using Level 2 inputs as of December 31, 2016 and 2015 : December 31, 2016 December 31, 2015 Assets Equipment held for sale - assets at fair value $ 41,067 $ — Impairment (loss) on equipment held for sale $ (19,399 ) $ — For the fair value of derivatives, refer to Note 6 - "Derivative Instruments". Note 2—Summary of Significant Accounting Policies (Continued) Revenue Recognition Operating Leases with Customers The Company enters into long-term leases and service leases with ocean carriers, principally as lessor in operating leases, for marine cargo equipment. Long-term leases provide Triton's customers with specified equipment for a specified term. The Company's leasing revenues are based upon the number of equipment units leased, the applicable per diem rate and the length of the lease. Long-term leases typically have initial contractual terms ranging from three to eight years. Revenues are recognized on a straight-line basis over the life of the respective lease. Advance billings are deferred and recognized in the period earned. Service leases do not specify the exact number of equipment units to be leased or the term that each unit will remain on-hire, but allow the lessee to pick-up and drop-off units at various locations specified in the lease agreement. Under a service lease, rental revenue is based on the number of equipment units on-hire for a given period. Revenue for customers considered to be non-performing is deferred and recognized when the amounts are received. In accordance with FASB Accounting Standards Codification No. 605, Revenue Recognition ("ASC 605"), the Company recognizes billings to customers for damages and certain other operating costs as leasing revenue as it is earned based on the terms of the contractual agreements with the customer. As principal, the Company is responsible for fulfillment of the services, supplier selection and service specifications, and has ultimate responsibility to pay the supplier for the services whether or not it collects the amount billed to the lessee. Finance Leases with Customers The Company enters into finance leases as lessor for some of the equipment in its fleet. The net investment in finance leases represents the receivables due from lessees, net of unearned income and amounts previously billed, which are included in accounts receivable. Unearned income is recognized on a level yield basis over the lease term and is recorded as leasing revenue. Finance leases are usually long-term in nature and typically include an option to purchase the equipment at the end of the lease term for an amount determined to be a bargain. Equipment Trading Revenues and Expenses Equipment trading revenues represent the proceeds from the sale of equipment purchased for resale and are recognized as units are sold and delivered to the customer. The related expenses represent the cost of equipment sold as well as other selling costs that are recognized as incurred and are reflected as equipment trading expenses in the consolidated statements of operations. Direct Operating Expenses Direct operating expenses are directly related to the Company's equipment under and available for lease. These expenses primarily consist of the Company's costs to repair and maintain the equipment, to reposition the equipment and to store the equipment when it is not on lease. These costs are recognized when incurred. Certain positioning costs may be capitalized when incurred to place new equipment on an initial lease. Deferred Financing Costs Deferred financing costs represent the fees incurred in connection with debt obligation arrangements. These costs are capitalized and amortized using the effective interest method or on a straight-line basis over the term of the related obligation, depending on the type of debt obligation to which they relate. Unamortized deferred financing costs are written off when the related debt obligations are refinanced or extinguished prior to maturity. Derivative Instruments The Company uses derivatives in the management of its interest rate exposure on its long-term borrowings. The Company accounts for derivative instruments in accordance with FASB Accounting Standards Codification No. 815, Derivatives and Hedging ("ASC 815"). ASC 815 requires that all derivative instruments be recorded on the balance sheet at their fair value and establishes criteria for both the designation and effectiveness of hedging activities. The Company has entered into interest rate swap agreements with certain financial institutions. The interest rate swap agreements require the Company to make payments to counterparties at fixed rates in return for receipts based upon variable rates indexed to the London Interbank Offered Rate (“LIBOR”) or payments to counterparties at variable rates in return for receipts based upon fixed rates. Note 2—Summary of Significant Accounting Policies (Continued) There are derivative instruments which are designated and non-designated for hedge accounting. The fair value of the derivative instruments was measured at each balance sheet date and is reflected on a gross basis on the consolidated balance sheets. The change in fair value of the derivative instruments which are designated is recorded on the consolidated balance sheets in accumulated other comprehensive income (loss) and are re-classified to interest expense when realized. The change in fair value of the derivative instruments which are non-designated is recorded on the consolidated statements of operations as unrealized loss (gain) on derivative instruments, net and are reclassified to realized loss (gain) on derivative instruments when realized. The Company has entered into interest rate cap agreements with certain financial institutions. The interest rate cap agreements require the Company to make payments to counterparties upon entering into the agreements. Future payments will be made by the counterparties only if the applicable interest rate exceeds the strike rate. Income Taxes Income taxes are accounted for under the asset and liability method in accordance with ASC 740, which requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between the tax basis and financial reporting basis of assets and liabilities. 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. Any change in the tax rate which has an effect on deferred tax assets and liabilities is recognized as an increase or decrease to income in the period that includes the enactment date of the law that resulted in the change in tax rate. The Company recognizes the effect of income tax positions which are more likely than not of being sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being susta |
Restricted Cash (Notes)
Restricted Cash (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | Restricted Cash The balances in restricted cash as of the dates indicated below were as follows (amounts in thousands): December 31, 2016 December 31, 2015 Collection accounts $ 1,178 $ 5,707 Trust accounts 18,906 13,919 Other restricted cash accounts 30,210 2,949 Total restricted cash $ 50,294 $ 22,575 Collection accounts The Company maintains bank accounts (collectively, the “Collection Accounts”). During any month, all proceeds from the containers owned and/or managed by the Company, including cash proceeds collected from rental and disposition invoices, are deposited into the Collection Accounts. Similarly, during any month, all expenses related to the operation of the containers are paid from the Collection Accounts. Portions of the Collection Accounts are reflected in either restricted cash or in cash and cash equivalents on the consolidated balance sheets. Trust accounts Pursuant to certain debt agreements, cash is transferred from the Collection Accounts to separate accounts (the “Trust Accounts”) on a monthly basis. The Trust Accounts are maintained by the Company on behalf of certain asset-backed noteholders. During the following month, the cash in the Trust Accounts is used to pay debt service and related expenses of the Company. After such payments, any remaining cash in these 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 Pursuant to certain asset-backed debt agreements, cash is transferred to separate accounts on a monthly basis in order to maintain an amount equal to projected interest expense for a specified number of months. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt Debt consisted of the following (amounts in thousands): December 31, 2016 December 31, 2015 Institutional notes $ 2,233,874 $ 2,140,857 Asset-backed securitization term notes 1,384,235 557,144 Term loan facilities 1,332,030 331,500 Asset-backed warehouse facility 660,000 — Revolving credit facilities 708,750 142,750 Capital lease obligations 96,775 13,676 Total debt outstanding 6,415,664 3,185,927 Deferred financing costs (19,999 ) (19,024 ) Unamortized fair value debt adjustment (42,216 ) — Debt, net of unamortized deferred financing costs $ 6,353,449 $ 3,166,903 The Company is subject to certain financial covenants under its debt agreements. None of the debt facilities of TCIL or TAL were impacted by the completion of the Merger, and therefore such agreements remain the obligations of the respective subsidiaries, and all related debt covenants are calculated at the subsidiary level. At December 31, 2016 and 2015 , the Company was in compliance with all financial covenants in accordance with the terms of its debt agreements. Pursuant to the terms of certain debt agreements, the Company is required to maintain certain restricted cash accounts. As of December 31, 2016 and 2015 , the Company had restricted cash of $50.3 million and $22.6 million , respectively. As of December 31, 2016 , the Company had $3,265.3 million of total debt outstanding on facilities with fixed interest rates. These fixed rate facilities had a weighted average effective interest rate of 4.40% as of December 31, 2016 , are scheduled to mature between 2017 and 2027 , and had a weighted average remaining term of 4.5 years as of December 31, 2016 . As of December 31, 2016 , the Company had $3,150.4 million of total debt outstanding on facilities with interest rates based on floating rate indices (primarily LIBOR). These floating rate facilities had a weighted average effective interest rate of 2.54% as of December 31, 2016 , are scheduled to mature between 2017 and 2022 , and had a weighted average remaining term of 2.9 years as of December 31, 2016 . Including the impact of the Company's interest rate swaps, the weighted average effective interest rate on its floating rate facilities was 3.04% as of December 31, 2016 . The Company economically hedges the risks associated with fluctuations in interest rates on a portion of its floating rate borrowings by entering into interest rate swap agreements that convert a portion of its floating rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense. As of December 31, 2016 , the Company had interest rate swaps in place with a net notional amount of $1,596.5 million and a weighted average remaining term of 4.8 years to fix the interest rates on a portion of its floating rate debt obligations. These interest rate swaps had a weighted average fixed leg interest rate of 1.73% as of December 31, 2016 . As of December 31, 2016 , the Company had $4,861.8 million of total debt which is at fixed rates or is effectively fixed due to interest rate swap contracts. This accounts for 75.8% of total debt. These facilities had a weighted average remaining term of 4.6 years . Overall, the Company had a weighted average effective interest rate of 3.73% as of December 31, 2016 , including the impact of the swap contracts. Institutional Notes In accordance with the institutional note agreements, interest payments on the Company's institutional notes are due monthly or semi-annually. Institutional note maturities typically range from 7 - 12 years, with level principal payments due annually following an interest-only period. The Company's institutional notes are pre-payable (in whole or in part) at the Company's option at any time, subject to certain provisions in the note agreements, including the payment of a make-whole premium in respect to such prepayment. Advance rates under the institutional notes range from 83% to 85% . Note 5—Debt (continued) TCIL's institutional notes are secured by the assets of TCIL on a pari passu basis with the TCIL Revolver and the TCIL Term Loan. Asset-Backed Securitization Term Notes Under the Company’s Asset-Backed Securitization (“ABS”) facilities, indirect wholly‑owned subsidiaries of the Company issue asset-backed notes. The issuance of asset-backed notes is the primary business objective of those subsidiaries. The ABS facilities are intended to be bankruptcy remote so that such assets are not available to creditors of Triton or its affiliates until and unless the related secured borrowings have been fully discharged. These transactions do not meet accounting requirements for sales treatment and are recorded as secured borrowings. The Company’s borrowings under the ABS facilities amortize in monthly installments, typically in level payments over ten years. The borrowing capacity under the ABS facilities is determined by applying an advance rate against the sum of the net book values of designated eligible containers and in certain cases other amounts. The net book values for purposes of calculating the Company’s borrowing capacity may be different than those calculated per U.S. GAAP. Advance rates under the ABS facilities range from 80% to 87% . The Company is required to maintain restricted cash balances on deposit in designated bank accounts equal to three to nine months of interest expense depending on the type of facility. Term Loans The term loan facilities has a maximum borrowing capacity of $1,432 million . The term loan facilities generally amortize in monthly installments. The borrowing capacity under the term loan facilities is determined by applying an advance rate in the range of 80% to 90% against the net book values of designated eligible containers, which is determined under the terms of each facility. Asset-Backed Warehouse Facility The asset-backed warehouse facility has a maximum borrowing capacity of $750.0 million . Under the facility, funds are available on a revolving basis until October 10, 2017 , after which if the facility is not refinanced, the notes will convert to term notes with a maturity date of October 10, 2021 . The term notes will amortize on a level basis over the four year term period to 60% of the outstanding balance. The Company primarily uses the proceeds of this facility to finance the acquisition of equipment. The borrowing capacity under the asset-backed warehouse facility is determined by applying the advance rate of 81% against the sum of the net book values of designated eligible containers and accounts receivable for sold containers not outstanding more than 60 days plus 100% of restricted cash. The net book value for purposes of calculating the Company's borrowing capacity is the original equipment cost depreciated over 13, 12, and 20 years to 40%, 25%, and 15% of original equipment cost for dry containers, refrigerated containers, and tank containers, respectively. The Company is required to maintain restricted cash balances on deposit in a designated bank account equal to three months of interest expense. Revolving Credit Facilities The Company’s three revolving credit facilities, TCIL Revolver due April 2021, TALICC Revolver due March 2018, and TALICC Revolver due May 2020, have a total commitment amount of $1.1 billion . On April 15, 2016, TCIL and a group of commercial banks entered into an amendment and restatement of the TCIL Revolver providing for the extension of the facility termination date from November 4, 2016 to April 15, 2021, and the reduction of the aggregate commitment amount thereunder from $600.0 million (which was shared under the prior TCIL Revolver with the TCI Credit Facility) to an aggregate commitment, available to TCIL only, of $300.0 million . An accordion feature provided for up to $300.0 million of increased and/or additive commitments for TCIL (for a total of up to $600.0 million of aggregate commitments). No changes were made to the borrowing base or to the pricing of the TCIL Revolver. On May 23, 2016, the aggregate commitments under the TCIL Revolver were increased to $555.0 million pursuant to the accordion feature. On August 31, 2016, the aggregate commitments under the TCIL Revolver were increased to $600.0 million . Note 5—Debt (continued) The credit facilities do not provide for joint liability among the borrowers and the borrowings thereunder are secured solely by the assets of the respective borrowers. As of December 31, 2016 , the available commitment amount under the TCIL Revolver, TALICC Revolver due March 2018, and TALICC Revolver due May 2020 was $216.3 million , $150.0 million , and $25.0 million , respectively. These commitment amounts may be limited by borrowing bases that restrict borrowing capacity to an established percentage of relevant assets. The Credit Facilities bear a commitment fee which ranges from 0.25% to 0.35% (also based on each Borrower’s senior secured debt rating as issued by S&P) on the unused portion of the Credit Facilities. In addition, an administrative fee is payable to the agent bank annually in advance. Debt maturities excluding capital lease obligations (amounts in thousands): Years ending December 31, 2017 $ 584,459 2018 950,921 2019 1,052,050 2020 835,035 2021 1,545,649 2022 and thereafter 1,350,775 Total $ 6,318,889 Capital Lease Obligations The Company has entered into a series of direct finance lease transactions with various financial institutions to finance chassis and containers. Each lease is accounted for as a capital lease, with interest expense recognized on a level yield basis over the period preceding early purchase options, if any, which is generally three to ten years from the transaction date. These agreements have fixed interest rates ranging from 3.21% to 5.72% , and mature between 2017 and 2024 . At December 31, 2016 , future lease payments under these capital leases were as follows (in thousands): Years ending December 31, 2017 $ 29,787 2018 27,584 2019 6,840 2020 6,396 2021 6,396 2022 and thereafter 31,454 Total future payments 108,457 Less: amount representing interest (11,682 ) Capital lease obligations $ 96,775 Deferred Financing Costs Deferred financing costs represent the fees incurred in connection with the Company's debt obligations, and are amortized using the effective interest method or on a straight-line basis over the term of the related obligation, depending on the type of debt obligation to which they relate. Unamortized deferred financing costs are written off when the related debt obligations are refinanced or extinguished prior to maturity, and are determined to be an extinguishment of debt. During 2016 and 2015, unamortized deferred financings costs of $0.1 million and $1.2 million were written off, respectively. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Interest Rate Swaps The Company has entered into interest rate swap agreements to manage interest rate risk exposure. Interest rate swap agreements utilized by the Company effectively modify the Company's exposure to interest rate risk by converting a portion of its floating rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense. Such agreements involve the receipt of floating rate amounts in exchange for fixed rate interest payments over the lives of the agreements without an exchange of the underlying principal amounts. The counterparties to the Company's interest rate swap agreements are highly rated financial institutions. In the unlikely event that the counterparties fail to meet the terms of the interest rate swap agreements, the Company's exposure is limited to the interest rate differential on the notional amount at each monthly settlement period over the life of the agreements. The Company does not anticipate any non-performance by the counterparties. Substantially all of the assets of certain indirect, wholly owned subsidiaries of the Company have been pledged as collateral for the underlying indebtedness and the amounts payable under the interest rate swap agreements for each of these entities. In addition, certain assets of the Company's subsidiaries, are pledged as collateral for various credit facilities and the amounts payable under certain interest rate swap agreements. As of December 31, 2016 , the Company had net interest rate swap agreements in place to fix the floating interest rates on a portion of the borrowings under its debt facilities as summarized below: Derivatives Net Notional Amount Weighted Average Fixed Leg (Pay) Interest Rate Cap Rate Weighted Average Interest rate swaps $1,596.5 million 1.73% —% 4.8 years Interest rate caps $84.5 million —% 4.0% 0.8 years Fair Value of Derivative Instruments Under the criteria established by ASC 820, the Company has elected to use the income approach to value its interest rate swap agreements, using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted) assuming that participants are motivated, but not compelled to transact. The Level 2 inputs for the interest rate swap and forward valuations are limited to quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability (specifically LIBOR cash and swap rates, basis swap adjustments and credit risk at commonly quoted intervals). Note 6—Derivative Instruments (continued) Location of Derivative Instruments in Financial Statements Fair Value of Derivative Instruments (In Millions) Asset Derivatives Liability Derivatives December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate swap contracts, designated as cash flow hedges Fair value of derivative instruments $ 0.5 Fair value of derivative instruments $ — Fair value of derivative instruments $ 8.7 Fair value of derivative instruments $ — Interest rate swap contracts, not designated Fair value of derivative instruments 5.2 Fair value of derivative instruments 2.2 Fair value of derivative instruments 0.7 Fair value of derivative instruments 0.3 Total derivatives $ 5.7 $ 2.2 $ 9.4 $ 0.3 Effect of Derivative Instruments on Consolidated Statements of Operations and Location of Loss (Gain) on Derivative Instruments Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Realized loss on non-designated interest rate swap agreements Realized loss on derivative instruments, net $ 3.4 $ 5.5 $ 9.4 Change in fair value of derivatives, designated as cash flow hedges Other comprehensive income (46.9 ) — — Realized loss on designated interest rate swap agreements Interest and debt expense 1.2 — — Net (gain) loss on interest rate swaps, not designated Unrealized (gain) loss on derivative instruments, net (4.4 ) 2.2 3.8 |
Net Investment in Finance Lease
Net Investment in Finance Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases, Capital [Abstract] | |
Net Investment in Finance Leases | Net Investment in Finance Leases The following table represents the components of the net investment in finance leases (in thousands): December 31, December 31, Future minimum lease payment receivable (1) $ 354,338 $ 90,054 Estimated residual receivable 65,793 108 Allowance on gross finance lease receivables (527 ) (526 ) Gross finance lease receivables, net of allowance 419,604 89,636 Unearned income (2) (72,794 ) (22,980 ) Net investment in finance leases (3) $ 346,810 $ 66,656 _______________________________________________________________________________ (1) At the inception of the lease, the Company records the total minimum lease payments net of executory costs, if any. The gross finance lease receivable is reduced as billed to the customer and reclassified to accounts receivable until paid. There were no executory costs included in gross finance lease receivables as of December 31, 2016 and 2015 . (2) The difference between the gross finance lease receivable and the fair value of the equipment at the lease inception is recorded as unearned income. Unearned income together with initial direct costs, are amortized to income over the lease term so as to produce a constant periodic rate of return. There were no unamortized initial direct costs as of December 31, 2016 and 2015 . (3) As of December 31, 2016 , approximately 43% of the Company's net investment in finance leases were with CMA CGM. As of December 31, 2016 , approximately 23% of the Company's net investment in finance leases were with Hapag Lloyd AG. As of December 31, 2016 and 2015 , approximately 7% and 40% , respectively, of the Company's net investment in finance leases were with Container Investment Limited. As of December 31, 2016 and 2015 , approximately 3% and 15% , respectively, of the Company's net investment in finance leases were with Tristar Container Services. Contractual maturities of the Company’s gross finance lease receivables subsequent to December 31, 2016 are as follows (in thousands): Years ending December 31, 2017 $ 82,016 2018 74,524 2019 69,137 2020 79,106 2021 45,189 2022 and thereafter 70,159 Total $ 420,131 The Company evaluates potential losses in its finance lease portfolio by regularly reviewing the specific receivables in the portfolio and analyzing historical loss experience. Net investment in finance lease receivables is generally charged off after an analysis is completed which indicates that collection of the full balance is remote. The Company maintains allowances, if necessary, for doubtful accounts and estimated losses resulting from the inability of its lessees to make required payments under direct financing. These allowances are based on, but not limited to, each lessee’s payment history, management’s current assessment of each lessee’s financial condition and the adequacy of the fair value of containers that collateralize the leases compared to the book value of the related net investment in direct finance leases. Note 7—Net Investment in Finance Leases (continued) The following table represents the activity of the Company's allowance on gross finance lease receivables for the periods presented (in thousands): Beginning Balance Additions/ Ending Balance Finance Lease—Allowance for doubtful accounts: For the year ended December 31, 2016 $ 526 $ 1 $ 527 For the year ended December 31, 2015 $ 526 $ — $ 526 For the year ended December 31, 2014 $ 526 $ — $ 526 |
Allocation of Profits (Notes)
Allocation of Profits (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest Disclosure [Text Block] | TCI’s Allocation of Profits, Losses and Distributions The members of TCI have made varying capital contributions with respect to investments in eleven different groups of containers under TCIL. Each group is referred to herein as a “Tranche.” Pursuant to the terms of the Operating Agreement, TCI’s assets, liabilities and results of operations are allocated by Tranche to those members who invested in each Tranche. As further provided in the Operating Agreement, TCI allocates all profits and losses, and may make periodic distributions, to its members. Such distributions are subject to restrictions contained in its various debt agreements. The Operating Agreement provides for the TCI investors to initially receive: 90% of container disposition proceeds cash flows up to a certain targeted amount, by Tranche, after which the TCI investors’ sharing in additional disposition proceeds cash flows declines pursuant to a schedule to 50%; and 10% of all non-disposition proceeds cash flows up to a certain targeted amount, by Tranche, after which the TCI investors’ sharing in additional non-disposition proceeds cash flows increases pursuant to a schedule to 50%. All remaining disposition and non-disposition proceeds cash flows are for the account of TCIL. Because the terms of the Operating Agreement reflect a profit sharing arrangement in which the investors’ economic rights differ from their legal ownership interests, the non-controlling interests in TCI’s earnings are based on the terms of the contractual arrangement. Income is allocated to non-controlling interests consistent with the allocation of operating cash flows and disposition proceeds over the Tranche lives. In September 2014, the Company purchased the entirety of one non-controlling interest’s membership interest in TCI. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Capital Stock and Stock Options | All TCIL share counts in the following description have been retroactively converted to reflect the share exchange ratios of 0.80 for TCIL related to the Merger. TCIL Share Options Effective May 23, 2011, TCIL adopted a share-based compensation plan (the “Option Plan”) for the benefit of certain executives of TCIL and its consolidated subsidiaries. The Option Plan allows for the issuance of service-based and market-based options. Options to purchase a total of 8,051,937 Class A common shares were initially granted in 2011 comprising market based options to purchase 5,370,640 Class A common shares and service based options to purchase 2,681,297 Class A common shares. On November 9, 2015, TCIL entered into option transaction agreements (the “Option Transaction Agreements”) with option holders in anticipation of the closing of the Merger with TAL. Market-based Options Market-based options were granted at exercise prices equal to the fair market value of the Class A common shares on the grant date. The fair value of the market-based options and the requisite vesting period have been calculated as of the grant date using a Monte Carlo simulation model. Note 8—Share Based Compensation and Other Equity Matters (continued) There were no market-based options granted under the Option Plan during 2016, 2015, or 2014. The market-based options granted and the weighted-average exercise price for the periods indicated below were as follows: Market-based Options Number of Class A Common Shares Underlying Options Weighted-Average Exercise Price Number of Class A Common Shares Underlying Exercisable Options Exercisable Weighted-Average Price Balance at December 31, 2013 5,326,613 $ 19.66 — — Granted during this period — — — — Exercised during this period — — — — Forfeited during this period — — — — Balance at December 31, 2014 5,326,613 $ 19.66 — — Granted during this period — — — — Exercised during this period — — — — Settled/cancelled during this period (5,326,613 ) (19.66 ) — — Balance at December 31, 2015 — $ — — — In accordance with the terms of the Option Transaction Agreements, TCIL settled and cancelled all vested and unvested market-based options as of November 9, 2015 in exchange for 692,126 fully vested Class A common shares at $18.14 per share or $12.6 million total fair value. Approximately 297,000 fully vested shares were redeemed to satisfy tax withholding obligations in respect of the settlement. As of June 1, 2015, the grant date fair value had been fully recognized as share based compensation expense reported as administrative expense on the consolidated statements of operations over the four year requisite service period on a straight line basis. The modification of the market based options, based on the Option Transaction Agreements, resulted in incremental compensation expense of $0.4 million recognized in November 2015. Note 8—Share Based Compensation and Other Equity Matters (continued) Service-based Options There were no service-based options granted under the Option Plan during 2016, 2015 or 2014. The service-based options granted and the weighted-average exercise price for the periods indicated below were as follows: Service-based Options Number of Class A Common shares Underlying Options Weighted-Average Exercise Price Number of Class A Common Shares Underlying Exercisable Options Exercisable Weighted-Average Price Balance at December 31, 2013 2,659,363 $ 19.66 1,051,181 $ 19.42 Granted during this period — — — — Exercised during this period (12,551 ) (19.42 ) — — Forfeited during this period — — — — Balance at December 31, 2014 2,646,812 $ 19.66 1,573,640 $ 19.50 Granted during this period — — — — Exercised during this period — — — — Forfeited during this period (3,138 ) (19.42 ) — — Balance at December 31, 2015 2,643,674 $ 19.66 2,102,375 $ 19.54 Granted during this period — — — — Exercised during this period — — — — Settled / cancelled during this period (2,643,674 ) (19.66 ) (2,102,375 ) (19.54 ) Balance at December 31, 2016 — $ — — $ — On July 8, 2016, TCIL settled and cancelled all vested and unvested service-based options in exchange for approximately 517,000 fully vested Class A common shares at $13.68 per share, or a fair value of $7.1 million . Approximately 232,300 options were redeemed to satisfy tax withholding obligations in respect of the settlement. As of November 9, 2015, the date the Option Transaction Agreements were entered into, the vested options were considered to be liability classified, which resulted in the reclassification of the fair value of the options from additional paid in capital to accounts payable and other accrued expenses. The value of the modified options was less than the service based options just prior to the modification, therefore, no incremental compensation expense was recorded in 2015. The fair value of the vested service based options after the modification was determined using a Monte Carlo simulation model. The fair value at November 9, 2015 was estimated at $7.4 million , and the fair value at December 31, 2015 was estimated at $6.2 million . The change in fair value was reflected as a reduction of the liability and an increase in paid in capital. The following assumptions were used to determine the fair value of the service based options at the dates above: Expected term of service-based options 5.56 years Expected common share price volatility 35% Expected dividends —% Expected forfeitures —% Risk-free interest rates (Treasury rate for expected term) 1.75% Note 8—Share Based Compensation and Other Equity Matters (continued) Total Options The Company recognized $2.3 million , $11.5 million , and $18.1 million of compensation costs reported as Transaction and other costs on the consolidated statements of operations for the years ended December 31, 2016 , 2015 and 2014, respectively, related to options granted during the years 2011 through 2013. There was no unearned compensation costs related to options as of December 31, 2016 . The aggregate intrinsic value of all options exercisable and outstanding under the Option Plan during the years ended December 31, 2016 , 2015 and 2014 based on the closing share price on the date each option was exercisable was $0.0 million , $0.0 million and $0.3 million , respectively. TCIL Non-Employee Director Equity Plan On July 12, 2016, 26,058 of restricted Class A common shares that were issued to participants of the non-employee director equity plan on May 19, 2016, became fully vested and the remaining unamortized balance of $0.4 million was expensed and recorded in Transaction and other costs. For the years ended December 31, 2016 , 2015 and 2014, non-employee director compensation expense of $0.3 million , $0.5 million and $0.5 million , respectively, was included in Administrative expenses on the consolidated statements of operations. TCIL Restricted Shares On July 8, 2016, the TCIL Board of Directors authorized and approved the issuance of 113,942 service-based restricted common shares at a fair value of $13.68 per share. The Company recognized $0.5 million of compensation costs reported as Transaction and other costs on the consolidated statements of operations for the year ended December 31, 2016 . The unvested compensation expense as of December 31, 2016 was $1.1 million and will vest on a straight line basis over the remaining vesting period of 2.0 years and compensation cost will be recorded in Administrative expenses in the consolidated statements of operations. TAL Stock Based Compensation Plan TAL’s previously existing stock-based compensation plans consisted of the 2005 Management Omnibus Incentive Plan and the 2014 Equity Incentive Plan. The TAL restricted shares granted in 2014 and 2015 vested on July 12, 2016 upon the closing of the Merger and therefore were included in the purchase price consideration. A total of 140,000 restricted shares granted in January 2016 were converted to Triton restricted shares and will vest based on services in approximately 2.0 years in accordance with their original terms. Unvested compensation expense of $1.3 million will be amortized to Administrative expenses on a straight line basis over the remaining vesting period of 2.0 years . 2016 Triton Plan On September 7, 2016, the Company’s Compensation Committee approved the grants of service-based and performance based restricted shares to various executives, certain employees and directors. Under the Company’s 2016 Equity Incentive Plan the total number of restricted shares granted to executives and employees was 418,022 at a fair value of $14.55 per share and will vest over 3.0 years . Additional shares may be granted based upon performance. There were 47,075 shares granted at $14.55 per share to directors and these shares vested immediately on September 7, 2016. Total unrecognized compensation costs of approximately $6.2 million as of December 31, 2016 related to the September 2016 grants of restricted shares will be recognized over the remaining weighted average vesting period of approximately 2.7 years to administrative expenses. Note 8—Share Based Compensation and Other Equity Matters (continued) Restricted share activity for the year ended December 31, 2016 was as follows: Number of Shares Outstanding Weighted Average Grant Date Fair Value TCIL converted restricted stock at July 12, 2016 113,942 $ 13.68 TAL converted restricted stock at July 12, 2016 140,000 10.89 Granted 418,022 14.55 Vested(1)(2) (36,772 ) 10.91 Nonvested at December 31, 2016 635,192 $ 13.31 ______________________________________________________________________________ (1) The fair value of restricted stock awards that vested during 2016 was $0.5 million . (2) Plan participants tendered 14,290 common shares, all of which were subsequently retired by the Company, to satisfy payment in certain instances, of withholding taxes, for a portion of the restricted stock vested during the year ended December 31, 2016 . Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) consisted of the following as of the dates indicated (in thousands and net of tax effects): Cash Flow Foreign Accumulated Other Comprehensive (Loss) Income Balance as of December 31, 2015 $ — $ (3,666 ) $ (3,666 ) Change in fair value of derivative instruments designated as cash flow hedges 30,405 — 30,405 Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges 777 — 777 Foreign currency translation adjustment — (758 ) (758 ) Other comprehensive income (loss) 31,182 (758 ) 30,424 Balance as of December 31, 2016 $ 31,182 $ (4,424 ) $ 26,758 Foreign Accumulated Other Comprehensive (Loss) Balance as of December 31, 2014 $ (3,258 ) $ (3,258 ) Foreign currency translation adjustment (408 ) (408 ) Other comprehensive (loss) (408 ) (408 ) Balance as of December 31, 2015 $ (3,666 ) $ (3,666 ) Note 8—Share Based Compensation and Other Equity Matters (continued) The following table presents reclassifications out of Accumulated other comprehensive income (loss) for the period indicated (in thousands): Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Operations December 31, 2016 December 31, 2015 Amounts reclassified from Accumulated other comprehensive (loss) before income tax 1,200 — Interest and debt expense Income tax (benefit) (423 ) — Income tax expense Amounts reclassified from Accumulated other comprehensive (loss) $ 777 $ — Net income |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Industry Segment Information The Company conducts its business activities in one industry, intermodal transportation equipment, and has two operating segments which are also reportable segments: • Equipment Leasing—the Company owns, leases and ultimately disposes of containers and chassis from its lease fleet, as well as manages leasing activities for containers owned by third parties. • Equipment Trading—the Company purchases containers from shipping line customers, and other sellers of containers, and resells these containers to container retailers and users of containers for storage or one-way shipment. Included in the Equipment trading segment revenues are leasing revenues from equipment purchased for resale that is currently on lease until the containers are dropped off. • These operating segments were determined based on the chief operating decision maker's review and resource allocation of the products and services offered. Triton acquired the Equipment Trading segment as part of the Merger on July 12, 2016. Prior to the Merger, the Company operated in only one segment - Equipment Leasing and therefore all income and assets were attributed to the Leasing segment for periods prior to the merger. The following tables show segment information for the periods indicated and the consolidated totals reported (dollars in thousands): Year Ended December 31, 2016 Equipment Equipment Totals Total leasing revenues $ 827,111 $ 1,583 $ 828,694 Trading margin — 618 618 Net (loss) on sale of leasing equipment (20,347 ) — (20,347 ) Depreciation and amortization expense 392,250 342 392,592 Interest and debt expense 183,377 637 184,014 Realized loss on derivative instruments, net 3,438 — 3,438 Income before income taxes(1) (6,302 ) (3,795 ) (10,097 ) Equipment held for sale at December 31 81,804 18,059 99,863 Goodwill at December 31 220,864 15,801 236,665 Total assets at December 31 8,660,786 52,785 8,713,571 Purchases of leasing equipment and investments in finance leases(2) 629,176 156 629,332 Year Ended December 31, 2015 Equipment Equipment Totals Total leasing revenues $ 707,839 $ — $ 707,839 Trading margin — — — Net gain on sale of leasing equipment 2,013 — 2,013 Depreciation and amortization expense 300,470 — 300,470 Interest and debt expense 140,644 — 140,644 Realized loss on derivative instruments, net 5,496 — 5,496 Income before income taxes(1) 135,127 — 135,127 Equipment held for sale at December 31 — — — Goodwill at December 31 — — — Total assets at December 31 4,658,997 — 4,658,997 Purchases of leasing equipment and investments in finance leases(2) 398,799 — 398,799 Year Ended December 31, 2014 Equipment Equipment Totals Total leasing revenues $ 707,215 $ — $ 707,215 Trading margin — — — Net gain on sale of leasing equipment 31,616 — 31,616 Depreciation and amortization expense 258,489 — 258,489 Interest and debt expense 137,370 — 137,370 Realized loss on derivative instruments, net 9,385 — 9,385 Income before income taxes(1) 188,802 — 188,802 Equipment held for sale at December 31 — — — Goodwill at December 31 — — — Total assets at December 31 4,863,259 — 4,863,259 Purchases of leasing equipment and investments in finance leases(2) 809,446 — 809,446 _______________________________________________________________________________ (1) Segment income before income taxes excludes unrealized gains on interest rate swaps of $4.4 million , unrealized losses on interest rate swaps of $2.2 million , and unrealized losses on interest swaps of $3.8 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively, and the write-off of deferred financing costs of $0.1 million , $1.2 million , and $7.5 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. (2) Represents cash disbursements for purchases of leasing equipment and investments in finance lease as reflected in the consolidated statements of cash flows for the periods indicated, but excludes cash flows associated with the purchase of equipment held for resale. There are no intercompany revenues or expenses between segments. Additionally, certain administrative expenses have been allocated between segments based on an estimate of services provided to each segment. A portion of the Company's equipment purchased for resale was purchased through certain sale-leaseback transactions with its shipping line customers. Due to the expected longer term nature of these transactions, these purchases are reflected as leasing equipment as opposed to equipment held for sale and the cash flows associated with these transactions are and will be reflected as purchases of leasing equipment and proceeds from the sale of equipment in investing activities in the Company's consolidated statements of cash flows. Geographic Segment Information The Company earns its revenues from international containers which are deployed by its customers in a wide variety of global trade routes. Substantially all of the Company's leasing related revenue is denominated in U.S. dollars. The following table represents the geographic allocation of equipment leasing revenues for the years ended December 31, 2016 , 2015 , and 2014 based on customers' primary domicile (in thousands): 2016 2015 2014 Total revenues: Asia $ 397,500 $ 403,910 $ 393,642 Europe 334,118 226,905 218,642 North America / South America 58,945 41,566 60,090 Bermuda 464 120 45 Other International 37,667 35,338 34,796 Total $ 828,694 $ 707,839 $ 707,215 As all of the Company's containers are used internationally, where no one container is domiciled in one particular place for a prolonged period of time, substantially all of the Company's long-lived assets are considered to be international. Note 10—Segment and Geographic Information (continued) The following table represents the geographic allocation of equipment trading revenues for the years ended December 31, 2016 (the Company had no equipment trading revenues in 2015 and 2014 ) based on the location of sale (in thousands): 2016 Total revenues: Asia $ 7,410 Europe 4,439 North America / South America 3,082 Other International 1,487 Total $ 16,418 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Triton is a Bermuda exempted company. Bermuda does not impose a corporate income tax. The Company is subject to taxation in certain foreign jurisdictions on a portion of its income attributable to such jurisdictions. The two main subsidiaries of Triton are TCIL and TAL. TCIL is a Bermuda exempted company and therefore no income tax is imposed. However, a portion of TCIL income is subject to taxation in the U.S. and certain other foreign jurisdictions. TAL is a U.S. company and therefore is subject to taxation in the U.S. The following table sets forth the income tax expense for the periods indicated (in thousands): 2016 2015 2014 Current taxes: Bermuda $ — $ — $ — U.S. (80 ) 487 1,143 Foreign 841 208 955 $ 761 $ 695 $ 2,098 Deferred taxes: Bermuda $ — $ — $ — U.S. (709 ) 3,327 4,160 Foreign (100 ) 26 (26 ) $ (809 ) $ 3,353 $ 4,134 Total income taxes $ (48 ) $ 4,048 $ 6,232 The components of (loss) income before income taxes for the periods indicated below were as follows (in thousands): 2016 2015 2014 Bermuda sources $ — $ — $ — U.S. Sources (7,451 ) 10,985 13,310 Foreign sources 1,618 120,732 164,226 (Loss) income before income taxes $ (5,833 ) $ 131,717 $ 177,536 Note 11—Income Taxes (Continued) The difference between the Bermuda statutory income tax rate and the effective tax rate on the consolidated statements of operations for the periods indicated below were as follows: 2016 2015 2014 Bermuda tax rate — % — % — % U.S. income taxed at other than the statutory rate 41.68 % 3.01 % 2.72 % Effect of uncertain tax positions (10.16 )% — % — % Foreign income taxed at other than the statutory rate (4.15 )% 0.23 % 0.58 % Change in enacted tax rate — % — % 0.39 % Effect of permanent differences, including non-deductible transaction costs (1.58 )% 0.05 % (0.16 )% Other discrete items related to share compensation (24.97 )% (0.22 )% (0.02 )% Effective income tax rate 0.82 % 3.07 % 3.51 % Deferred income tax assets and liabilities are comprised of the following (in thousands): December 31, 2016 December 31, 2015 Deferred income tax assets: Net operating loss carryforwards $ 273,055 $ 623 Passive activity loss carryforwards 12 135 Allowance for losses 4,250 106 Derivative instruments 5,514 — Deferred income 35 60 Accrued liabilities and other payables 2,233 2,354 Total gross deferred tax assets 285,099 3,278 Less: Valuation allowance (286 ) (525 ) Net deferred tax assets $ 284,813 $ 2,753 Deferred income tax liabilities: Accelerated depreciation 516,472 21,448 Goodwill and other intangible amortization 2,639 — Derivative instruments 287 30 Deferred income 71,359 — Deferred partnership income (loss) (TCI) 1,765 1,845 Other 9,607 — Total gross deferred tax liability 602,129 23,323 Net deferred income tax liability $ 317,316 $ 20,570 The valuation allowance for deferred tax assets as of December 31, 2016 and 2015 was $0.3 million and $0.5 million , respectively. Net changes in total valuation allowance for the years ended December 31, 2016 and 2015 were related to net operating loss carryforwards that, in the judgment of the Company, are more likely than not to not be utilized. The Merger resulted in an ownership change under the Internal Revenue Code and certain state taxing authorities whereby federal net operating losses immediately prior to the Merger of $700 million will be subject to certain limitations. The Company does not expect such limitations to impact the ability to utilize net operating losses prior to their expiration. Note 11—Income Taxes (Continued) In assessing the potential future realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not 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 considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods during which the deferred tax assets are deductible, the Company believes it is more likely than not that Triton will realize the benefits of these deductible differences at December 31, 2016 , except for a portion of the net operating loss carryover against which the Company has a valuation allowance. Income taxes on unremitted earnings have not been reflected on the consolidated financial statements because such earnings are intended to be permanently reinvested in those jurisdictions. Such earnings and withholding taxes are estimated to be approximately $78 million and $23 million , respectively, at December 31, 2016 . Net operating loss carryforwards for foreign income tax purposes of $794.2 million are available to offset future U.S. taxable income from 2017 through 2036 . The Company files income tax returns in several jurisdictions including the U.S. and certain U.S. states. Unrecognized tax benefit amounts for the periods indicated below were as follows (in thousands): December 31, 2016 December 31, 2015 Beginning balance at January 1 $ 7,345 $ 7,395 Increase related to current year’s tax position 1,233 1,260 Lapse of statute of limitations (791 ) (678 ) Foreign exchange adjustment (10 ) (632 ) Ending balance at December 31 $ 7,777 $ 7,345 All unrecognized tax benefits as of December 31, 2016 will impact income tax expense when recognized; however, $6.1 million of the unrecognized tax benefit will have no net impact on after-tax income as a result of offsetting reimbursements from third parties. It is reasonably possible that the total amount of unrecognized tax benefit as of December 31, 2016 will decrease by $0.9 million within the next twelve months due to statute of limitations lapses. This reduction will impact income tax expense when recognized. The 2014, 2015, and 2016 tax years remain subject to examination by major tax jurisdictions. Interest and penalty expense for the periods indicated below were as follows (in thousands): Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Interest expense (benefit) $ 121 $ 15 $ 21 Penalty expense (29 ) (98 ) 68 The components of income taxes and other taxes payable included in accounts payable and other accrued expenses on the consolidated balance sheets were as follows (in thousands): December 31, 2016 December 31, 2015 Corporate income taxes payable $ 32 $ 194 Unrecognized tax benefits 7,777 7,345 Interest accrued 680 559 Penalties 625 654 Income taxes payable 9,114 8,752 Other taxes payable 456 3,985 Total income taxes and other taxes payable $ 9,570 $ 12,737 |
Savings Plan (Notes)
Savings Plan (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Savings Plan [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Savings Plan The Company’s employees participate in a defined contribution plan. Under the provisions of the plan, an employee is fully vested with respect to Company contributions after five years of service. The Company matches employee contributions between 100% to 120% up to a maximum of $6,000 of qualified compensation and may, at its discretion, make voluntary contributions. Contributions were $0.7 million for the year ended December 31, 2016 and were $0.6 million for each of the years ended December 31, 2015 , and 2014 , respectively. |
Rental Income under Operating L
Rental Income under Operating Leases (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Leases, Operating [Abstract] | |
Operating Leases of Lessor Disclosure [Text Block] | Rental Income under Operating Leases The following are the minimum future rentals at December 31, 2016 due to Triton under non-cancelable operating leases, assuming the minimum contractual lease term, of the Company’s equipment (in thousands): Years ending December 31, 2017 $ 645,526 2018 498,325 2019 378,722 2020 274,852 2021 176,970 2022 and thereafter 195,557 Total $ 2,169,952 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments The Company has cancelable and non-cancelable operating lease agreements principally for facilities and for office equipment used in the Company’s operations. Total operating lease rental expense included in administrative expenses on the consolidated statements of operations was $2.3 million $1.4 million , and $1.1 million for the year ended December 31, 2016 , 2015 , and 2014 , respectively. Future minimum rental commitments under non-cancelable operating leases having an original term of more than one year as of December 31, 2016 were as follows (in thousands): Years ending December 31, 2017 $ 2,623 2018 3,332 2019 999 2020 206 2021 and thereafter 52 Total $ 7,212 Container Equipment Purchase Commitments At December 31, 2016 , the Company had commitments to purchase equipment in the amount of $261.0 million payable in 2017 . Contingencies The Company is party to various pending or threatened legal or regulatory proceedings arising in the ordinary course of its business. Based upon information presently available, management of the Company does not expect any liabilities arising from these matters to have a material effect on the consolidated financial position, results of operations or cash flows of the Company. Note 14—Commitments and Contingencies (continued) Retention Bonus Plan Effective May 23, 2011, TCIL established a bonus plan to award bonuses to certain employees for continued service (the “Retention Bonus Plan”). In accordance with the terms of the Retention Bonus Plan agreement, specified bonus amounts, plus interest compounded annually, will be paid to all participants in the Retention Bonus Plan on May 23, 2017 (the “payment date”). The total bonus amount and its applicable compounded interest is accrued on a straight-line basis until the payment date and is recorded as an increase in accrued compensation included in accounts payable and other accrued expenses on the consolidated balance sheets and as long-term compensation expense included in transaction and other costs on the consolidated statements of operations. In accordance with the Retention Bonus Plan agreement, if a participant’s service has been terminated prior to the payment date, the Company’s liability is reduced and the payment amount is either forfeited or in some instances, paid to the participant. On October 26, 2015 , TCIL established an incremental retention bonus plan (the “Plan”) to award bonuses to certain other employees not included in the above plan for continued service. The Plan became effective on the closing date of the Merger with TAL. Specified bonus amounts will be paid to all Plan participants on the earlier of their termination date or May 23, 2017 . Effective November 9, 2015 , TAL established a bonus plan to award bonuses to certain employees for continued service (the “TAL Retention Bonus Plan”). In accordance with the terms of the TAL Retention Bonus Plan agreement, specified bonus amounts will be paid to all participants on the earlier of their termination date or June 30, 2017 . A roll-forward of the retention bonus liability balance is as follows: (in thousands) Total Balance at December 31, 2013 $ 12,262 Accrual 4,239 Payments (302 ) Balance at December 31, 2014 16,199 Accrual 3,921 Payments (992 ) Balance at December 31, 2015 19,128 Liability acquired 4,082 Accrual 7,384 Payments (5,419 ) Balance at December 31, 2016 $ 25,175 Severance Plan On October 26, 2015 and November 9, 2015, TCIL and TAL, respectively, established severance plans in order to provide severance benefits to eligible employees who are involuntarily terminated for reasons other than cause, or who resign for “good reason”. Employees eligible for benefits under the respective severance plans would receive a severance award and other benefits based upon their tenure with TCIL and TAL. No accruals were recorded under the plan prior to the close of the Merger on July 12, 2016. Note 14—Commitments and Contingencies (continued) The severance balance is as follows: (in thousands) Total Balance at December 31, 2015 $ — Accrual 33,991 Payments (13,273 ) Balance at December 31, 2016 $ 20,718 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | Selected Quarterly Financial Data (Unaudited) The following table sets forth certain key interim financial information for the years ended December 31, 2016 and 2015 : (In thousands, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2016 Total leasing revenues $ 163,025 $ 158,333 $ 247,789 $ 259,547 Trading margin $ — $ — $ 232 $ 386 Net (loss) on sale of leasing equipment $ (1,837 ) $ (1,930 ) $ (12,319 ) $ (4,261 ) Net income (loss) attributable to shareholders $ 8,742 $ 6,174 $ (51,211 ) $ 22,778 Net (loss) income per basic common share $ 0.22 $ 0.15 $ (0.74 ) $ 0.31 Net (loss) income per diluted common share $ 0.22 $ 0.15 $ (0.74 ) $ 0.31 2015 Total leasing revenues $ 180,131 $ 178,989 $ 175,719 $ 173,000 Trading margin $ — $ — $ — $ — Net gain (loss) on sale of leasing equipment $ 5,248 $ 1,077 $ (3,254 ) $ (1,058 ) Net income attributable to shareholders $ 40,870 $ 36,241 $ 21,158 $ 12,820 Net income per basic common share $ 1.02 $ 0.91 $ 0.53 $ 0.32 Net income per diluted common share $ 0.96 $ 0.87 $ 0.52 $ 0.32 |
Foreign Currency Activities
Foreign Currency Activities | 12 Months Ended |
Dec. 31, 2016 | |
Foreign Currency Activites [Abstract] | |
Foreign Currency Disclosure [Text Block] | Foreign Currency Activities The Company recorded net foreign currency exchange losses of $0.4 million , $0.4 million , and $0.7 million in the years ended December 31, 2016 , 2015 , and 2014 , respectively. The net foreign currency exchange losses resulted primarily from fluctuations in exchange rates related to the Company’s Euro and Pound Sterling transactions and related assets and liabilities. |
Related Party (Notes)
Related Party (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions Payments to Affiliates Payments made to an affiliates for services which were mainly related to container repositioning for the periods indicated below were as follows: International Asset Systems ("IAS") is a leader in cloud-based solutions for global logistics and transportation management in which two of the Company's significant shareholders have an interest. IAS serves providers of global transportation, focusing on first- and last-mile landside movement for logistics service providers, motor carriers, ocean carriers, railroads and equipment lessors. On July 21, 2016, REZ-1, Inc., a leading provider of asset management, equipment reservation, billing and reload services to the domestic intermodal industry, announced its acquisition of IAS. As of July 21, 2016, IAS was no longer a related party. Payments made to IAS for the years ended December 31, 2016 and 2015 were as follows: (in thousands) December 31, 2016 December 31, 2015 Payments to IAS $ 136 $ 780 Marine Container Services (India) Private Limited (“MCS”) is a related party, as MCS is party to a joint venture agreement with TCIL. Payments made to MCS for services related primarily to container operations for the periods indicated below were as follows: (in thousands) December 31, 2016 December 31, 2015 Payments to MCS $ 183 $ 208 TCIL holds a 50% interest in TriStar Container Services (Asia) Private Limited (“TriStar”) which is primarily engaged in the selling and leasing of container equipment in the domestic and short sea markets in India. TCIL includes an equity investment in TriStar on the balance sheet included in “Other assets”. TCIL has direct finance leases and a loan payable with TriStar. (in thousands) December 31, 2016 December 31, 2015 Payments received from TriStar on direct finance leases $ 1,670 $ 1,091 Payments received from TriStar on loan payable $ 45 $ 6 Direct finance lease balance $ 10,636 $ 10,207 Loan payable balance $ 126 $ 210 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated events subsequent to the balance sheet date and prior to the filing of this Annual Report on Form 10-K for the year ended December 31, 2016 and have determined that no events have occurred that would require adjustment to our consolidated financial statements. Quarterly Dividend The Company's Board of Directors declared a $0.45 per share quarterly cash dividend on its issued and outstanding common shares, payable on March 30, 2017 to shareholders of record at the close of business on March 20, 2017 . Debt Facilities On March 10, 2017, the Company entered into a floating rate ABS warehouse facility for a commitment of $400 million . The first $200 million of borrowings will have a two year revolving period that precedes a three year term period; and any excess borrowings up to the total commitment will have a one year revolving period with an eighteen month term period following. The total commitment of $400 million under both facilities remains undrawn at the time of this filing. On March 9, 2017, the Company entered into two interest rate swap agreements for a total of $400 million that involves the receipt of floating rate amounts in exchange for fixed rate interest payments in order to fix the interest rate on a portion of the borrowings under its floating rate debt facilities. The agreements are non-amortizing over a one year term. The Company has designated these interest rate swap agreements as cash flow hedges for accounting purposes. In February 2017, the Company secured financing on one of its owned properties for approximately $19 million at a floating rate for a period of three years. During January 2017, the Company entered into two lease transactions with financial institutions to finance the purchase of new containers for approximately $35 million . The lease transactions are accounted for as capital leases over the term period of eight years and contain two early buyout options. The Company increased the commitment on certain of its existing term loan facilities by $125 million , and drew down $185 million under these facilities to finance a portion of its new equipment purchases. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | CHEDULE II TRITON INTERNATIONAL LIMITED Valuation and Qualifying Accounts Years ended December 31, 2016 , 2015 , and 2014 (In thousands) Finance Lease-Allowance for doubtful accounts: For the year ended December 31, 2016 For the year ended December 31, 2015 For the year ended December 31, 2014 Beginning Balance $ 526 $ 526 $ 526 Additions/ (Reversals) 1 — — (Write-offs) Reversals — — — Ending Balance $ 527 $ 526 $ 526 Accounts Receivable-Allowance for doubtful accounts: Beginning Balance $ 8,297 $ 9,576 $ 7,367 Additions/ (Reversals) 19,811 (1,211 ) 2,223 (Write-offs) Reversals (26 ) (68 ) (14 ) Ending Balance $ 28,082 $ 8,297 $ 9,576 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Long Lived Assets Held-for-sale [Line Items] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses during the reporting period and disclosure of contingent assets and liabilities at the date of the financial statements. Such estimates include the Company's estimates in connection with purchase accounting, residual value, depreciable lives, values of assets held for sale, the allowance for doubtful accounts, and estimates related to the bankruptcy of a lessee (including amounts for recoveries under insurance policies as described below) among others. Actual results could differ from those estimates. |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | The following table summarizes the Company’s assets measured at fair value on a non-recurring basis which was measured using Level 2 inputs as of December 31, 2016 and 2015 : December 31, 2016 December 31, 2015 Assets Equipment held for sale - assets at fair value $ 41,067 $ — Impairment (loss) on equipment held for sale $ (19,399 ) $ — |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries and subsidiaries in which it has a controlling interest. The Company has a controlling interest in Triton Container Investments LLC, (“TCI”) and TCI’s wholly owned subsidiaries, Triton Container Finance IV LLC, (“TCF-IV”). TCI is not considered a variable interest entity because i) TCI’s total equity investment at risk is sufficient to permit the entity to finance its activities without additional subordinated financial support; ii) the non-Company investors (the “TCI investors”) lack the characteristics of a controlling financial interest; iii) the voting rights of the TCI investors are not disproportional; and iv) substantially all of TCI’s activities are not conducted on behalf of an investor who has disproportionately few voting rights. TCI is consolidated into the Company because TCIL, one of the Company’s wholly owned subsidiaries contributed more than 50% of TCI’s consolidated members’ capital and controls TCI’s operations as its manager. While TCIL as manager is limited by the Operating Agreement and cannot take certain actions that are inconsistent with the purpose of TCI or actions including acquiring equity or debt securities, selling or disposing of a material portion of TCI’s property in a single transaction, making capital expenditures in excess of $1 million, other than the purchase of new containers, and causing TCI to institute a proceeding seeking liquidation, the TCI investors do not have the substantive ability to dissolve TCI or otherwise remove TCIL as manager without cause and do not have substantive participating rights. Non-controlling interests included in the Company’s consolidated financial statements are comprised of (i) the amount of the initial investment made by the TCI investors, plus or minus (ii) the profits and/or losses allocated to the TCI investors pursuant to the terms of TCI’s limited liability company operating agreement (the “Operating Agreement”), plus or minus (iii) additional cash contributions made by and/or cash distributions received by the TCI investors. The income allocated to the TCI investors is determined based on a formula contained in the Operating Agreement and amounts allocated to non-controlling interests will vary based on the operating performance of the containers and the sale proceeds from the containers once the containers are retired from the fleet. Consolidated income tax expense is calculated based upon income attributable to the Company and, accordingly excludes income tax on the income attributable to the TCI investors, which is the responsibility of the owners of such interests. The Company held membership interests in TCI representing 53.4% and 51.7% of TCI’s total members’ capital as of December 31, 2016 and 2015 , respectively. The equity method of accounting is applied when the Company does not have a controlling interest in an entity but exerts significant influence over the entity. All significant intercompany balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents consist of all cash balances and highly liquid investments having original maturities of three months or less at the time of purchase. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company's allowance for doubtful accounts is provided based upon a review of the collectibility of its receivables. This review is based on the risk profile of the receivables, credit quality indicators such as the level of past-due amounts, and economic conditions. Generally, the Company does not require collateral on accounts receivable balances. An account is considered past due when a payment has not been received in accordance with the contractual terms. Changes in economic conditions or other events may necessitate additions or deductions to the allowance for doubtful accounts. The allowance for doubtful accounts is intended to provide for losses in the receivables, and requires the application of estimates and judgments as to the outcome of collection efforts and the realization of collateral, among other things. The Company believes its allowance for doubtful accounts is adequate to provide for credit losses inherent in its existing receivables. When a customer becomes insolvent, the Company evaluates the collectibility of receivables, and provides an allowance for amounts deemed to be uncollectible and also assesses the recoverability of the on-lease containers and associated recovery costs. To the extent amounts are expected to be recoverable from insurance policies, the Company records a receivable based on amounts incurred not to exceed insurance limits. A loss would be recorded if expected recoveries are less than book value of the containers. Any amounts expected to be recovered for lost revenue are not recorded until received from insurance carriers. On August 31, 2016, Hanjin Shipping Co. ("Hanjin"), a lessee of the Company, filed for court protection and immediately began a liquidation process. At that time, we had approximately 87,000 container units on lease to Hanjin with a net book value of $243.3 million . The Company maintains credit insurance to cover the value of such containers that are unrecoverable, costs incurred to recover containers and a portion of lost lease revenue, (limited up to six months or until a container is recovered, repaired, and available for re-lease) all subject to a deductible. In connection with the Hanjin bankruptcy, the Company has recorded a charge of $29.7 million during the third quarter ended September 30, 2016 comprised of bad debt expense and a charge for costs not expected to be recovered due to deductible limits. Upon the announcement of the Hanjin bankruptcy, the Company ceased recognizing revenue from the customer which amounted to $15.9 million during the year ended December 31, 2016 . A portion of this lost revenue has been applied towards the deductible under the policies. The Company has recorded a receivable under its insurance policies of approximately $17.2 million since the deductible has been achieved. At the present time, the Company believes the anticipated losses as a result of Hanjin will be recoverable under the insurance policies, subject to the deductible limits. The Company estimates that a large portion of its equipment will ultimately be recovered, and this estimate has been considered into the estimated loss described above. |
Concentration of Credit Risk | Concentration of Credit Risk The Company's equipment lease and trade receivables subject it to potential credit risk. The Company extends credit to its customers based upon an evaluation of each customer's financial condition and credit history. Evaluations of the financial condition and associated credit risk of customers are performed on an ongoing basis. The Company's largest customer is CMA CGM, which accounted for 17% of the Company's lease billings and 23% of the accounts receivable in 2016 and its second largest customer, Mediterranean Shipping Company, accounted for 15% of lease billings and 7% of the accounts receivable in 2016 . Mediterranean Shipping Company accounted for 17% and 16% of the Company's leasing revenues in 2015 and 2014 , respectively. |
Net Investment in Finance Leases | Net Investment in Finance Leases The Company has entered into various rental agreements that qualify as direct financing leases or sales-type leases. These leases are usually long-term in nature, typically ranging for a period of three to ten years, and typically include an option to purchase the equipment at the end of the lease term at a bargain purchase price. At the inception of a direct financing lease or a sales-type lease, a net investment is recorded based on the gross investment (representing the total future minimum lease payments due under the lease plus the estimated residual value), net of unearned income. Note 2—Summary of Significant Accounting Policies (Continued) For a direct financing lease, unearned income represents the excess of the gross investment over the net book value of the leased equipment at lease inception. For a sales-type lease, unearned income represents the excess of the gross investment over the fair value of the leased equipment (calculated as the present value of both the total future minimum lease payments due under the lease and the estimated residual value) at lease inception. At the inception of a sales-type lease, gain (loss) is defined as the difference between (i) the net investment in the lease and (ii) the net book value of the subject containers on the Company’s books at the commencement of the lease. |
Leasing Equipment | Leasing Equipment In general, the Company purchases new equipment from equipment manufacturers for the purpose of leasing such equipment to customers. The Company also purchases used equipment with the intention of selling such equipment in one or more years from the date of purchase. Used units are typically purchased with an existing lease in place or were previously owned by one of Triton's third party owner investors. Leasing equipment is recorded at cost and depreciated to an estimated residual value on a straight-line basis over their estimated useful lives. Capitalized costs for new container rental equipment generally include the manufactured cost of the container, inspection, delivery, and associated costs incurred in moving the container from the manufacturer to the initial on-hire location of such container. Repair and maintenance costs that do not extend the lives of the container rental equipment are charged to direct operating expenses at the time the costs are incurred. The estimated useful lives and residual values of the Company's leasing equipment are based on historical disposal experience and the Company's expectations for future used container sale prices. The Company reviews its depreciation policies on a regular basis to determine whether changes have taken place that would suggest that a change in its depreciation policies, useful lives of its equipment or the assigned residual values is warranted. Effective October 1, 2015, after conducting its regular depreciation policy review during the fourth quarter, the Company reduced the estimated residual values for 40-foot dry containers from $1,300 to $1,200 and for 40-foot high cube dry containers from $1,700 to $1,400 . In addition, the Company revised the useful life estimates for its 20-foot dry containers, 40-foot dry containers and 40-foot high cube dry containers from 12 years to 13 years effective October 1, 2015. Depreciation expense would have been lower by $1.8 million (and $0.05 per diluted share) during the year ended December 31, 2015, had the Company not made these changes in estimates. The estimated useful lives and residual values for each major equipment type for the periods as indicated below were as follows: January 1, 2015 to September 30, 2015 October 1, 2015 to December 31, 2016 Equipment Type Depreciable Life Residual Value Depreciable Life Residual Value Dry containers 20-foot dry container 12 years $ 1,000 13 years $ 1,000 40-foot dry container 12 years $ 1,300 13 years $ 1,200 40-foot high cube dry container 12 years $ 1,700 13 years $ 1,400 Refrigerated containers 20-foot refrigerated container 12 years $ 2,250 12 years $2,250 to $2,500 40-foot high cube refrigerated container 12 years $ 3,250 12 years $3,250 to $3,500 Special containers 40-foot flat rack container 12 years $ 3,000 12 to 14 years $1,500 to $3,000 40-foot open top container 12 years $ 2,500 12 to 14 years $2,300 to $2,500 Tank containers N/A N/A 20 years $ 3,000 Chassis N/A N/A 20 years $ 1,200 Depreciation on leasing equipment starts on the date of initial on-hire. For leasing equipment acquired through sale-leaseback transactions, the Company adjusts its estimates for remaining useful life and residual values based on current conditions in the sale market for older containers and the Company's expectations for how long the equipment will remain on-hire to the current lessee. Note 2—Summary of Significant Accounting Policies (Continued) The net book value of the Company's leasing equipment by equipment type as of the dates indicated was (in thousands): December 31, 2016 December 31, 2015 Dry container units $ 4,839,648 $ 2,743,150 Refrigerated container units 2,037,952 1,497,100 Special container units 265,666 121,793 Tank container units 107,933 — Chassis 119,320 — Total $ 7,370,519 $ 4,362,043 Included in the amounts above are units not on lease at December 31, 2016 and 2015 with a total net book value of $524.9 million and $319.3 million , respectively. Amortization on equipment purchased under capital lease obligations is included in depreciation and amortization expense in the consolidated statements of operations. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Valuation of long-lived assets - leasing equipment The carrying value of leasing equipment is reviewed for impairment whenever changes in circumstances indicate that the carrying amounts may not be recoverable. If indicators of impairment are present, a determination is made as to whether the carrying value of Triton's fleet exceeds its estimated future undiscounted cash flows. Key indicators of impairment on leasing equipment include, among other factors, a sustained decrease in operating profitability, a sustained decrease in utilization, or indications of technological obsolescence. The Company evaluated these indicators in its annual 2016 impairment analysis and concluded that there was no impairment on the leasing equipment fleet. When testing for impairment, leasing equipment is generally grouped by equipment type, and is tested separately from other groups of assets and liabilities. Some of the significant estimates and assumptions used to determine future undiscounted cash flows and the measurement for impairment are the remaining useful life, expected utilization, expected future lease rates and expected disposal prices of the equipment. The Company considers the assumptions on expected utilization and the remaining useful life to have the greatest impact on its estimate of future undiscounted cash flows. These estimates are principally based on the Company's historical experience and management's judgment of market conditions. An impairment charge is taken when the carrying amount of the leasing equipment asset group exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposal of the equipment. For the years ended December 31, 2016 and 2015, the Company recorded $13.1 million and $7.2 million , respectively, of impairment charges to depreciation expense related to leasing equipment that was not expected to be re-leased. There were no impairment charges for the year ended December 31, 2014. |
Equipment Held for Sale | Equipment Held for Sale When leasing equipment is returned off lease, the Company makes a determination of whether to repair and re-lease the equipment or sell the equipment. At the time the Company determines that equipment will be sold, it reclassifies the appropriate amounts previously recorded as leasing equipment to equipment held for sale. In accordance with FASB Accounting Standards Codification No. 360, Property, Plant and Equipment ("ASC 360"), equipment held for sale is carried at the lower of its estimated fair value, based on current transactions, less costs to sell, or carrying value; depreciation on such assets is halted and disposals generally occur within 90 days. Subsequent changes to the fair value of those assets, either increases or decreases, are recorded as adjustments to the carrying value of the equipment held for sale; however, any such adjustments may not exceed the respective equipment's carrying value at the time it was initially classified as held for sale. Initial write downs of assets held for sale are recorded as an impairment charge and are included in net gain or loss on sale of leasing equipment. Realized gains and losses resulting from the sale of equipment held for sale are recorded as net gain or loss on sale of leasing equipment, and cash flows associated with the disposal of equipment held for sale are classified as cash flows from investing activities. Subsequent to the completion of the Merger, Triton management committed to a plan to sell certain idle equipment and therefore, the carrying value of this group of equipment was re-classified to assets for sale. Triton acquired the Equipment trading segment as part of the Merger on July 12, 2016 and had no such reporting segment prior to that time. Equipment purchased for resale and included in the Equipment Trading Segment is reported as equipment held for sale when the time frame between when equipment is purchased and when it is sold is expected to be short, less than one year. Note 2—Summary of Significant Accounting Policies (Continued) During the years ended December 31, 2016 , 2015 , and 2014 , the Company recorded the following net losses or gains on sale of leasing equipment held for sale in the consolidated statements of operations: (in thousands) 2016 2015 2014 Impairment (loss) on equipment held for sale $ (19,399 ) $ — $ — (Loss) gain on sale of equipment-net of selling costs (948 ) 2,013 31,616 Net (loss) gain on sale of leasing equipment $ (20,347 ) $ 2,013 $ 31,616 |
Schedule of Gain Loss on Sale of Leasing Equipment [Table Text Block] | During the years ended December 31, 2016 , 2015 , and 2014 , the Company recorded the following net losses or gains on sale of leasing equipment held for sale in the consolidated statements of operations: (in thousands) 2016 2015 2014 Impairment (loss) on equipment held for sale $ (19,399 ) $ — $ — (Loss) gain on sale of equipment-net of selling costs (948 ) 2,013 31,616 Net (loss) gain on sale of leasing equipment $ (20,347 ) $ 2,013 $ 31,616 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Furniture and Equipment Costs of major additions of property, furniture, equipment and improvements are capitalized and are included in other assets on the consolidated balance sheets. The original cost is depreciated on a straight-line basis over the estimated useful lives of such property, furniture and equipment. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated useful lives of the leased assets. Other fixed assets, which consist primarily of computer software and hardware, are recorded at cost and amortized on a straight-line basis over their respective estimated useful lives, which range from three to seven years. Expenditures for maintenance and repairs are expensed as they are incurred. |
Business Combinations Policy [Policy Text Block] | Allocation of Acquisition Purchase Price to Assets Acquired and Liabilities Assumed The Company has accounted for the Merger described above under the acquisition method of accounting in accordance with the FASB Accounting Standards Topic No. 805, Business Combinations (“ASC No. 805”). TCIL has been treated as the acquirer in the Merger for accounting purposes. In making the determination of the accounting acquirer, TCIL considered all pertinent information and facts related to the combined entity as identified by ASC No. 805-10-55-12 to 15, which included relative voting rights, presence of a large minority interest, composition of the Board of Directors and senior management, terms of the exchange of equity interests, and relative size. In the aggregate, it was concluded that factors such as the former TCIL shareholders’ 55% voting rights in the combined entity, after considering certain voting limitations, the presence of a large minority voting interest concentrated within the former Company TCIL shareholders and the relative size of TCIL in relation to TAL, indicated that TCIL should be the accounting acquirer. Triton has finalized its allocation of the purchase price to the fair value of the TAL assets acquired and liabilities assumed. The purchase price allocation has been developed based on estimates of fair value using the historical financial statements of TAL as of July 12, 2016. In addition, the allocation of the purchase price to acquired tangible and intangible assets is based on fair value estimates and with the assistance of third-party valuation advisers. |
Goodwill | Goodwill The Company accounts for goodwill in accordance with FASB Accounting Standards Codification No. 350, Intangibles—Goodwill and Other ("ASC 350"). ASC 350 requires goodwill and other intangible assets with indefinite lives to be reviewed for impairment annually, or more frequently if circumstances indicate a possible impairment. In connection with the acquisition of TAL that occurred in 2016, the Company recorded $236.7 million of goodwill. Management determined that subsequent to the acquisition of TAL, the Company has two reporting units, Equipment leasing and Equipment trading, and allocated $220.9 million and $15.8 million , respectively, to each reporting unit. The Company has elected to bypass the qualitative approach permitted under ASC 350 for testing goodwill for impairment, but may elect to perform the qualitative approach to test goodwill for impairment in future periods. Under the two step approach, the estimated fair value of the reporting unit is first compared with its carrying value (including goodwill). If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the estimated fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation in acquisition accounting. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Note 2—Summary of Significant Accounting Policies (Continued) The annual impairment test is conducted by comparing the reporting unit's carrying amount to its fair value. If the carrying value of the entity exceeds its fair value, then a second step would be performed that compares the implied fair value of goodwill with the carrying amount. The determination of the implied fair value of goodwill requires management to allocate the estimated fair value of the reporting units to its assets and liabilities in a manner similar. Any excess fair value represents the implied fair value of goodwill. To the extent that the carrying amount of goodwill exceeds its implied fair value, an impairment loss would be recorded. Fair value of the reporting unit under the two-step assessment is determined using a combination of discounted cash flow approach and a market capitalization approach, inclusive of an estimated control premium. The key assumptions applied to the cash flow projections were discount rates, new container prices, near-term revenue growth rates, and perpetual growth rates. These assumptions contemplated business, market and overall economic conditions. Based on the results of this testing, the Company determined that the fair value of each of its reporting units exceeded its respective carrying amount and that no impairment of goodwill existed. Intangible assets Intangible assets with finite useful lives such as acquired lease intangibles and customer relationships are initially recorded at fair value and are amortized over their respective estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. We recorded no impairment charges related to intangibles during the years ended December 31, 2016, 2015 and 2014. |
Fair Value of Financial Instruments | Fair Value Measurements The Company believes that the carrying amounts of its cash and cash equivalents, accounts receivable, equipment purchases payable, and accounts payable approximated their fair value as of December 31, 2016 and December 31, 2015 . Fair value represents the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes the following fair value hierarchy when selecting inputs for its valuation techniques, with the highest priority given to Level 1: • Level 1—Financial assets and liabilities whose values are based on observable inputs such as quoted prices for identical instruments in active markets (unadjusted). • Level 2—Financial assets and liabilities whose values are based on observable inputs such as (i) quoted prices for similar instruments in active markets; (ii) quoted prices for identical or similar instruments in markets that are not active; or (iii) model-derived valuations in which all significant inputs are observable in active markets. • Level 3—Financial assets and liabilities whose values are derived from valuation techniques based on one or more significant unobservable inputs. The Company does not measure debt, net of unamortized deferred financing costs at fair value in its consolidated balance sheets. The fair value, which was measured using Level 2 inputs, and the carrying value of the Company's debt are listed in the table below as of December 31, 2016 and December 31, 2015 (in thousands). December 31, 2016 December 31, 2015 Liabilities Total Debt(1) - carrying value $ 6,373,448 $ 3,185,927 Total Debt(1) - estimated fair value $ 6,316,229 $ 3,256,284 _______________________________________________________________________________ (1) Excludes unamortized deferred financing costs of $20.0 million and $19.0 million as of December 31, 2016 and December 31, 2015 , respectively. We determine fair value of Equipment held for sale, by reference to recent sales prices and other factors. An impairment charge is recorded when the carrying value of the asset exceeds its fair value. The following table summarizes the Company’s assets measured at fair value on a non-recurring basis which was measured using Level 2 inputs as of December 31, 2016 and 2015 : December 31, 2016 December 31, 2015 Assets Equipment held for sale - assets at fair value $ 41,067 $ — Impairment (loss) on equipment held for sale $ (19,399 ) $ — For the fair value of derivatives, refer to Note 6 - "Derivative Instruments". |
Revenue Recognition | Revenue Recognition Operating Leases with Customers The Company enters into long-term leases and service leases with ocean carriers, principally as lessor in operating leases, for marine cargo equipment. Long-term leases provide Triton's customers with specified equipment for a specified term. The Company's leasing revenues are based upon the number of equipment units leased, the applicable per diem rate and the length of the lease. Long-term leases typically have initial contractual terms ranging from three to eight years. Revenues are recognized on a straight-line basis over the life of the respective lease. Advance billings are deferred and recognized in the period earned. Service leases do not specify the exact number of equipment units to be leased or the term that each unit will remain on-hire, but allow the lessee to pick-up and drop-off units at various locations specified in the lease agreement. Under a service lease, rental revenue is based on the number of equipment units on-hire for a given period. Revenue for customers considered to be non-performing is deferred and recognized when the amounts are received. In accordance with FASB Accounting Standards Codification No. 605, Revenue Recognition ("ASC 605"), the Company recognizes billings to customers for damages and certain other operating costs as leasing revenue as it is earned based on the terms of the contractual agreements with the customer. As principal, the Company is responsible for fulfillment of the services, supplier selection and service specifications, and has ultimate responsibility to pay the supplier for the services whether or not it collects the amount billed to the lessee. Finance Leases with Customers The Company enters into finance leases as lessor for some of the equipment in its fleet. The net investment in finance leases represents the receivables due from lessees, net of unearned income and amounts previously billed, which are included in accounts receivable. Unearned income is recognized on a level yield basis over the lease term and is recorded as leasing revenue. Finance leases are usually long-term in nature and typically include an option to purchase the equipment at the end of the lease term for an amount determined to be a bargain. Equipment Trading Revenues and Expenses Equipment trading revenues represent the proceeds from the sale of equipment purchased for resale and are recognized as units are sold and delivered to the customer. The related expenses represent the cost of equipment sold as well as other selling costs that are recognized as incurred and are reflected as equipment trading expenses in the consolidated statements of operations. |
Direct Operating Expenses | Direct Operating Expenses Direct operating expenses are directly related to the Company's equipment under and available for lease. These expenses primarily consist of the Company's costs to repair and maintain the equipment, to reposition the equipment and to store the equipment when it is not on lease. These costs are recognized when incurred. Certain positioning costs may be capitalized when incurred to place new equipment on an initial lease. |
Deferred Policy Acquisition Costs, Policy [Policy Text Block] | Deferred Financing Costs Deferred financing costs represent the fees incurred in connection with debt obligation arrangements. These costs are capitalized and amortized using the effective interest method or on a straight-line basis over the term of the related obligation, depending on the type of debt obligation to which they relate. Unamortized deferred financing costs are written off when the related debt obligations are refinanced or extinguished prior to maturity. |
Derivative Instruments | Derivative Instruments The Company uses derivatives in the management of its interest rate exposure on its long-term borrowings. The Company accounts for derivative instruments in accordance with FASB Accounting Standards Codification No. 815, Derivatives and Hedging ("ASC 815"). ASC 815 requires that all derivative instruments be recorded on the balance sheet at their fair value and establishes criteria for both the designation and effectiveness of hedging activities. The Company has entered into interest rate swap agreements with certain financial institutions. The interest rate swap agreements require the Company to make payments to counterparties at fixed rates in return for receipts based upon variable rates indexed to the London Interbank Offered Rate (“LIBOR”) or payments to counterparties at variable rates in return for receipts based upon fixed rates. Note 2—Summary of Significant Accounting Policies (Continued) There are derivative instruments which are designated and non-designated for hedge accounting. The fair value of the derivative instruments was measured at each balance sheet date and is reflected on a gross basis on the consolidated balance sheets. The change in fair value of the derivative instruments which are designated is recorded on the consolidated balance sheets in accumulated other comprehensive income (loss) and are re-classified to interest expense when realized. The change in fair value of the derivative instruments which are non-designated is recorded on the consolidated statements of operations as unrealized loss (gain) on derivative instruments, net and are reclassified to realized loss (gain) on derivative instruments when realized. The Company has entered into interest rate cap agreements with certain financial institutions. The interest rate cap agreements require the Company to make payments to counterparties upon entering into the agreements. Future payments will be made by the counterparties only if the applicable interest rate exceeds the strike rate. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method in accordance with ASC 740, which requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between the tax basis and financial reporting basis of assets and liabilities. 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. Any change in the tax rate which has an effect on deferred tax assets and liabilities is recognized as an increase or decrease to income in the period that includes the enactment date of the law that resulted in the change in tax rate. The Company recognizes the effect of income tax positions which are more likely than not of being sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. If the effect of an income tax position is recognized, a tax benefit is then measured based upon the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution of the income tax position. The full impact of any change in recognition or measurement is reflected in the period in which such change occurs. Potential interest and penalties associated with such uncertain tax positions are recorded as a component of income tax expense. |
Foreign Currency Translation and Remeasurement | Foreign Currency Translation and Remeasurement The net assets and operations of foreign subsidiaries included in the consolidated financial statements are attributable primarily to the Company's U.K. subsidiary. The accounts of this subsidiary have been converted at rates of exchange in effect at year end as to balance sheet accounts and at the weighted average of exchange rates for the year as to statements of operations accounts. The effects of changes in exchange rates in translating foreign subsidiaries' financial statements are included in shareholders' equity as accumulated other comprehensive (loss) income. The Company also has certain cash accounts, certain finance lease receivables and certain obligations that are denominated in currencies other than the Company's functional currency. These assets and liabilities are generally denominated in Euros or British Pounds, and are remeasured at each balance sheet date at the exchange rates in effect as of those dates. The impact of changes in exchange rates on the remeasurement of assets and liabilities are included in administrative expenses. |
Stock-Based Compensation | Share-based Compensation The Company accounts for compensation cost relating to share-based payment transactions in accordance with the FASB Accounting Standards Codification No. 718, Compensation-Stock Compensation . The cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity award) on a straight-line basis. |
Comprehensive Income | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that would occur if securities or other contracts to issue common shares were exercised or converted into common shares, utilizing the treasury share method. There were 169,403 , 65,237 , and 82,269 anti-dilutive restricted common shares and options to purchase common shares excluded from the calculations of weighted average shares outstanding for diluted earnings per share for the years ended December 31, 2016 , 2015 , and 2014 , respectively. |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting The Company conducts its business activities in one industry, intermodal transportation equipment, and has two reporting segments, Equipment leasing and Equipment trading. The Company also segregates total equipment leasing revenues and total equipment trading revenues by geographic location based upon the primary domicile of the Company’s customers. Prior to the Merger on July 12, 2016, the Company had only one segment, the Equipment Leasing segment. As a result of the Merger, the Equipment Trading segment was acquired. |
Recently Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2014, the FASB issued Accounting Standards Update No. 2014-15 ("ASU No. 2014-15"), Presentation of Financial Statements (Topic 205): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern . This standard requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that financial statements are issued and to disclose those conditions if management has concluded that substantial doubt exists. Subsequent to adoption, this guidance will need to be applied by management at the end of each annual period and interim period therein to determine what, if any, impact there will be on the Consolidated Financial Statements in a given reporting period. These changes became effective for the Company for the 2016 annual period. Management has determined that the adoption of these changes did not have an impact on the Consolidated Financial Statements as this standard is disclosure only. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 ("ASU No. 2016-02"), Leases (Topic 842) that replaces existing lease accounting guidance. Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: • A lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and • A right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The accounting that will be applied by lessors under ASC 842 is largely unchanged from previous GAAP. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and ASC 606, Revenue from Contracts with Customers . The new lease guidance will become effective for the Company for periods beginning after December 15, 2018. The Company is currently evaluating the effect the guidance will have on the Consolidated Financial Statements, but does not expect any material impact to its Consolidated Financial Statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-08 ("ASU No. 2016-08"), Revenue from Contracts with Customers (Topic 606), amending previous updates regarding this topic. Leasing revenue recognition is specifically excluded from this ASU, and therefore, the new standard will only apply to Equipment Trading revenues and sales of leasing equipment. As the majority of our sales contracts are for containers and do not contain multiple elements we expect the impact to be minimal. The effective date is interim periods beginning after December 15, 2017. Earlier application is permitted. The Company is evaluating the transition method that will be elected and the potential effects of adopting the provisions of ASU No. 2016-08. Note 2—Summary of Significant Accounting Policies (Continued) In March 2016, the FASB issued Accounting Standards Update No. ASU No. 2016-09 ("ASU No. 2016-09") Compensation - Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting . The guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2016, and early adoption is permitted. Different components of the guidance require prospective, retrospective and/or modified retrospective adoption. We expect to adopt this guidance when effective, and do not expect the guidance to have a significant impact on our financial statements. In June 2016, the FASB issued Accounting Standards Update No. ASU 2016-13 ("ASU No. 2016-13") Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments. The guidance affects trade receivables and net investments in leases. The guidance requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectibility. The new guidance will be effective for fiscal years and interim periods beginning after December 15, 2019 and early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Different components of the guidance require modified retrospective and/or prospective adoption. We are currently assessing whether we will early adopt, and the impact on our financial statements is not currently estimable. In August 2016, the FASB issued Accounting Standards Update No. 2016-15 ("ASU No. 2016-15"), Statement of Cash Flows (Topic 230): Classification of Certain Receipts and Cash Payments . The updated amendment provides guidance as to where certain cash flow items are presented, including debt prepayment or debt extinguishment costs and proceeds from the settlement of insurance claims. The update to the standard is effective for the Company for periods beginning after December 15, 2017. The Company is currently evaluating the effect the guidance will have on the Consolidated Financial Statements. In November 2016, the FASB issued Accounting Standards Update No. 2016-18 ("ASU No. 2016-18"), Statement of Cash Flows (Topic 230): Restricted Cash . The amendments in ASU 2016-18 require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments do not provide a definition of restricted cash or restricted cash equivalents. The update to the standard is effective for the Company for periods beginning after December 15, 2017. The Company is currently evaluating the effect the guidance will have on the Consolidated Financial Statements. In January 2017, the FASB issued Accounting Standards Update No. 2017-04 ("ASU No. 2017-04"), Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The Board eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The FASB also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The update to the standard is effective for the Company for periods beginning after December 15, 2019. The Company is currently evaluating the effect the guidance will have on the Consolidated Financial Statements. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Gain Loss on Sale of Leasing Equipment [Line Items] | |
Schedule of Gain Loss on Sale of Leasing Equipment [Table Text Block] | During the years ended December 31, 2016 , 2015 , and 2014 , the Company recorded the following net losses or gains on sale of leasing equipment held for sale in the consolidated statements of operations: (in thousands) 2016 2015 2014 Impairment (loss) on equipment held for sale $ (19,399 ) $ — $ — (Loss) gain on sale of equipment-net of selling costs (948 ) 2,013 31,616 Net (loss) gain on sale of leasing equipment $ (20,347 ) $ 2,013 $ 31,616 |
Schedule of estimated useful lives and residual values for the majority of the Company's leasing equipment | January 1, 2015 to September 30, 2015 October 1, 2015 to December 31, 2016 Equipment Type Depreciable Life Residual Value Depreciable Life Residual Value Dry containers 20-foot dry container 12 years $ 1,000 13 years $ 1,000 40-foot dry container 12 years $ 1,300 13 years $ 1,200 40-foot high cube dry container 12 years $ 1,700 13 years $ 1,400 Refrigerated containers 20-foot refrigerated container 12 years $ 2,250 12 years $2,250 to $2,500 40-foot high cube refrigerated container 12 years $ 3,250 12 years $3,250 to $3,500 Special containers 40-foot flat rack container 12 years $ 3,000 12 to 14 years $1,500 to $3,000 40-foot open top container 12 years $ 2,500 12 to 14 years $2,300 to $2,500 Tank containers N/A N/A 20 years $ 3,000 Chassis N/A N/A 20 years $ 1,200 October 1, 2015 to December 31, 2016 Equipment Type Minimum Depreciable Life Maximum Depreciable Life Minimum Residual Value Maximum Residual Value Refrigerated containers 20-foot refrigerated container $2,250 $ 2,500 40-foot high cube refrigerated container $3,250 $ 3,500 Special containers 40-foot flat rack container 12 years 14 years $1,500 $ 3,000 40-foot open top container 12 years 14 years $2,300 $ 2,500 |
Schedule of net book value of the Company's leasing equipment by equipment type | The net book value of the Company's leasing equipment by equipment type as of the dates indicated was (in thousands): December 31, 2016 December 31, 2015 Dry container units $ 4,839,648 $ 2,743,150 Refrigerated container units 2,037,952 1,497,100 Special container units 265,666 121,793 Tank container units 107,933 — Chassis 119,320 — Total $ 7,370,519 $ 4,362,043 |
Schedule of fair value, which was measured using Level 2 inputs, and the carrying value of the Company's debt | The fair value, which was measured using Level 2 inputs, and the carrying value of the Company's debt are listed in the table below as of December 31, 2016 and December 31, 2015 (in thousands). December 31, 2016 December 31, 2015 Liabilities Total Debt(1) - carrying value $ 6,373,448 $ 3,185,927 Total Debt(1) - estimated fair value $ 6,316,229 $ 3,256,284 _______________________________________________________________________________ (1) Excludes unamortized deferred financing costs of $20.0 million and $19.0 million as of December 31, 2016 and December 31, 2015 , respectively. |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Common Share Issuance and Merger [Table Text Block] | On November 9, 2015, TCIL and TAL announced that they entered into a definitive agreement, under which the companies agreed to combine in an all-stock merger, pursuant to the Transaction Agreement, dated as of November 9, 2015 (the "Transaction Agreement"), by and among TAL, Triton International Limited ("Triton" or the "Company"), TCIL, Ocean Delaware Sub, Inc., a Delaware corporation and direct wholly owned subsidiary of Triton, and Ocean Bermuda Sub Limited, a Bermuda exempted company and direct wholly owned subsidiary of Triton. On July 12, 2016, the transactions contemplated by the Transaction Agreement (the "Merger") were approved by the stockholders of TAL and became effective. Immediately following the completion of the Merger, former TCIL shareholders owned approximately 55% of the outstanding equity of the Company and former TAL stockholders owned approximately 45% of the outstanding equity of the Company. The Company has accounted for the Merger described above under the acquisition method of accounting in accordance with the FASB Accounting Standards Topic No. 805, Business Combinations (“ASC No. 805”). TCIL has been treated as the acquirer in the Merger for accounting purposes. In making the determination of the accounting acquirer, the Company considered all pertinent information and facts related to the combined entity as identified by ASC No. 805-10-55-12 to 15, which included relative voting rights, presence of a large minority interest, composition of the Board of Directors and senior management, terms of the exchange of equity interests, and relative size. In the aggregate, it was concluded that factors, such as the former TCIL shareholders’ 55% voting rights in the combined entity, after considering certain voting limitations, the presence of a large minority voting interest concentrated within the former Company TCIL shareholders and the relative size of TCIL in relation to TAL, indicated that TCIL should be the accounting acquirer. The consideration for the transaction was paid in common shares of Triton. TAL stockholders received one common share of Triton in exchange for each share of TAL common stock, or approximately 33.4 million common shares. TCIL shareholders received approximately 0.80 common shares, or approximately 40.8 million of Triton common shares for each of TCIL's common shares. The fair value of the consideration, or the purchase price in the following purchase price allocation is approximately $510.2 million . This amount was derived based on the fair value of the shares issued to former TAL stockholders on the closing date of July 12, 2016 when the closing stock price was $15.28 per share. Triton has finalized the allocation of the purchase price to the fair value of the TAL assets acquired and liabilities assumed. The purchase price allocation presented below has been developed based on management analysis and with the assistance of third-party valuation advisers using valuation techniques as appropriate. During the quarter ended December 31, 2016, the Company reduced the preliminary goodwill recorded by $25.3 million and also reduced deferred tax assets by a similar amount in connection with the finalization of the purchase price allocation. The residual amount of the purchase price after the allocation to identifiable intangibles has been allocated to goodwill. Net assets acquired: (in thousands) Cash and cash equivalents $ 50,349 Restricted cash 59,115 Accounts receivable, net 75,846 Leasing equipment 3,052,693 Net investment in finance leases 159,885 Equipment held for sale 80,655 Goodwill 236,665 Other assets 32,084 Intangible assets 302,757 Accounts payable and other accrued expenses (63,858 ) Derivative instruments (64,206 ) Equipment purchases payable (10,071 ) Deferred income tax liability (280,610 ) Debt (3,121,118 ) Total consideration $ 510,186 Note 3—Business Combination (continued) The purchase price allocation to intangible assets acquired was: Intangible assets (in thousands) Above market lease intangibles $ 298,457 Customer intangibles 4,300 Total intangible assets $ 302,757 The estimated intangible assets are comprised of a lease intangible for leases acquired with lease rates that are above market and a customer intangible related to the chassis and tank containers lease market acquired. The estimated useful lives of 3.2 years for the lease intangibles and 3.0 years for customer intangibles are consistent with the expected benefit period of these intangible assets. The following table represents the intangible assets amortization as of December 31, 2016 (in thousands): Years ending December 31, Above market lease intangibles Customer intangibles Total intangible assets 2017 $ 88,598 $ 1,433 $ 90,031 2018 61,451 1,433 62,884 2019 36,426 758 37,184 2020 22,632 — 22,632 2021 16,652 — 16,652 2022 and thereafter 17,215 — 17,215 Total $ 242,974 $ 3,624 $ 246,598 Triton incurred transaction and other costs related to the Merger which are included in "Transaction and other costs" in the Consolidated Statements of Operations. Transaction and other costs associated with the Merger for the years ended December 31, 2016 and 2015 were as follows: (in thousands) December 31, December 31, Employee compensation costs $ 40,360 $ 3,520 Professional fees 14,295 2,841 Legal expenses 3,370 3,919 Other 2,412 — Total $ 60,437 $ 10,280 Employee compensation costs include costs to maintain and retain key employees, severance expenses, and certain stock compensation expense. Professional fees and legal expenses include costs paid for services directly related to the closing of the Merger and include legal fees, accounting fees and transaction and advisory fees. Pro Forma Disclosure The following table provides the unaudited pro forma results of operations, which gives effect to the transaction as if it had occurred on January 1, 2015. The pro forma results of operations also reflects adjustments (i) to leasing revenues for the amortization of the fair value of operating lease contracts over the current market rate (ii) to amortization and depreciation expense resulting from the write-down of leasing equipment to fair value and the amortization of customer intangibles acquired and (iii) to eliminate non-recurring charges that were incurred in connection with the transactions including acquisition-related share-based compensation, transaction costs related to legal, accounting, and other advisory fees, and transaction costs related to retention and benefit costs. Note 3—Business Combination (continued) The unaudited pro forma results do not include any anticipated synergies or other expected benefits of the Merger. The unaudited pro forma financial information presented below is not necessarily indicative of either future results of operations or results that might have been achieved had the Merger occurred as of January 1, 2015. (in thousands) December 31, December 31, Total leasing revenues $ 1,076,753 $ 1,198,148 Net income attributable to shareholders 36,015 180,638 Since the date of acquisition, total leasing revenues, which is net of lease intangible amortization, include TAL's results of $203.7 million . Net loss attributable to shareholders includes TAL's results of $9.2 million . |
Business Combination, Separately Recognized Transactions [Table Text Block] | Transaction and other costs associated with the Merger for the years ended December 31, 2016 and 2015 were as follows: (in thousands) December 31, December 31, Employee compensation costs $ 40,360 $ 3,520 Professional fees 14,295 2,841 Legal expenses 3,370 3,919 Other 2,412 — Total $ 60,437 $ 10,280 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The purchase price allocation to intangible assets acquired was: Intangible assets (in thousands) Above market lease intangibles $ 298,457 Customer intangibles 4,300 Total intangible assets $ 302,757 The estimated intangible assets are comprised of a lease intangible for leases acquired with lease rates that are above market and a customer intangible related to the chassis and tank containers lease market acquired. The estimated useful lives of 3.2 years for the lease intangibles and 3.0 years for customer intangibles are consistent with the expected benefit period of these intangible assets. The following table represents the intangible assets amortization as of December 31, 2016 (in thousands): Years ending December 31, Above market lease intangibles Customer intangibles Total intangible assets 2017 $ 88,598 $ 1,433 $ 90,031 2018 61,451 1,433 62,884 2019 36,426 758 37,184 2020 22,632 — 22,632 2021 16,652 — 16,652 2022 and thereafter 17,215 — 17,215 Total $ 242,974 $ 3,624 $ 246,598 |
Business Acquisition, Pro Forma Information [Table Text Block] | The unaudited pro forma financial information presented below is not necessarily indicative of either future results of operations or results that might have been achieved had the Merger occurred as of January 1, 2015. (in thousands) December 31, December 31, Total leasing revenues $ 1,076,753 $ 1,198,148 Net income attributable to shareholders 36,015 180,638 Since the date of acquisition, total leasing revenues, which is net of lease intangible amortization, include TAL's results of $203.7 million . Net loss attributable to shareholders includes TAL's results of $9.2 million . |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | Net assets acquired: (in thousands) Cash and cash equivalents $ 50,349 Restricted cash 59,115 Accounts receivable, net 75,846 Leasing equipment 3,052,693 Net investment in finance leases 159,885 Equipment held for sale 80,655 Goodwill 236,665 Other assets 32,084 Intangible assets 302,757 Accounts payable and other accrued expenses (63,858 ) Derivative instruments (64,206 ) Equipment purchases payable (10,071 ) Deferred income tax liability (280,610 ) Debt (3,121,118 ) Total consideration $ 510,186 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Schedule of Restricted Cash and Cash Equivalents [Table Text Block] | The balances in restricted cash as of the dates indicated below were as follows (amounts in thousands): December 31, 2016 December 31, 2015 Collection accounts $ 1,178 $ 5,707 Trust accounts 18,906 13,919 Other restricted cash accounts 30,210 2,949 Total restricted cash $ 50,294 $ 22,575 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Instrument [Line Items] | |
Debt Disclosure [Text Block] | Debt Debt consisted of the following (amounts in thousands): December 31, 2016 December 31, 2015 Institutional notes $ 2,233,874 $ 2,140,857 Asset-backed securitization term notes 1,384,235 557,144 Term loan facilities 1,332,030 331,500 Asset-backed warehouse facility 660,000 — Revolving credit facilities 708,750 142,750 Capital lease obligations 96,775 13,676 Total debt outstanding 6,415,664 3,185,927 Deferred financing costs (19,999 ) (19,024 ) Unamortized fair value debt adjustment (42,216 ) — Debt, net of unamortized deferred financing costs $ 6,353,449 $ 3,166,903 The Company is subject to certain financial covenants under its debt agreements. None of the debt facilities of TCIL or TAL were impacted by the completion of the Merger, and therefore such agreements remain the obligations of the respective subsidiaries, and all related debt covenants are calculated at the subsidiary level. At December 31, 2016 and 2015 , the Company was in compliance with all financial covenants in accordance with the terms of its debt agreements. Pursuant to the terms of certain debt agreements, the Company is required to maintain certain restricted cash accounts. As of December 31, 2016 and 2015 , the Company had restricted cash of $50.3 million and $22.6 million , respectively. As of December 31, 2016 , the Company had $3,265.3 million of total debt outstanding on facilities with fixed interest rates. These fixed rate facilities had a weighted average effective interest rate of 4.40% as of December 31, 2016 , are scheduled to mature between 2017 and 2027 , and had a weighted average remaining term of 4.5 years as of December 31, 2016 . As of December 31, 2016 , the Company had $3,150.4 million of total debt outstanding on facilities with interest rates based on floating rate indices (primarily LIBOR). These floating rate facilities had a weighted average effective interest rate of 2.54% as of December 31, 2016 , are scheduled to mature between 2017 and 2022 , and had a weighted average remaining term of 2.9 years as of December 31, 2016 . Including the impact of the Company's interest rate swaps, the weighted average effective interest rate on its floating rate facilities was 3.04% as of December 31, 2016 . The Company economically hedges the risks associated with fluctuations in interest rates on a portion of its floating rate borrowings by entering into interest rate swap agreements that convert a portion of its floating rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense. As of December 31, 2016 , the Company had interest rate swaps in place with a net notional amount of $1,596.5 million and a weighted average remaining term of 4.8 years to fix the interest rates on a portion of its floating rate debt obligations. These interest rate swaps had a weighted average fixed leg interest rate of 1.73% as of December 31, 2016 . As of December 31, 2016 , the Company had $4,861.8 million of total debt which is at fixed rates or is effectively fixed due to interest rate swap contracts. This accounts for 75.8% of total debt. These facilities had a weighted average remaining term of 4.6 years . Overall, the Company had a weighted average effective interest rate of 3.73% as of December 31, 2016 , including the impact of the swap contracts. Institutional Notes In accordance with the institutional note agreements, interest payments on the Company's institutional notes are due monthly or semi-annually. Institutional note maturities typically range from 7 - 12 years, with level principal payments due annually following an interest-only period. The Company's institutional notes are pre-payable (in whole or in part) at the Company's option at any time, subject to certain provisions in the note agreements, including the payment of a make-whole premium in respect to such prepayment. Advance rates under the institutional notes range from 83% to 85% . Note 5—Debt (continued) TCIL's institutional notes are secured by the assets of TCIL on a pari passu basis with the TCIL Revolver and the TCIL Term Loan. Asset-Backed Securitization Term Notes Under the Company’s Asset-Backed Securitization (“ABS”) facilities, indirect wholly‑owned subsidiaries of the Company issue asset-backed notes. The issuance of asset-backed notes is the primary business objective of those subsidiaries. The ABS facilities are intended to be bankruptcy remote so that such assets are not available to creditors of Triton or its affiliates until and unless the related secured borrowings have been fully discharged. These transactions do not meet accounting requirements for sales treatment and are recorded as secured borrowings. The Company’s borrowings under the ABS facilities amortize in monthly installments, typically in level payments over ten years. The borrowing capacity under the ABS facilities is determined by applying an advance rate against the sum of the net book values of designated eligible containers and in certain cases other amounts. The net book values for purposes of calculating the Company’s borrowing capacity may be different than those calculated per U.S. GAAP. Advance rates under the ABS facilities range from 80% to 87% . The Company is required to maintain restricted cash balances on deposit in designated bank accounts equal to three to nine months of interest expense depending on the type of facility. Term Loans The term loan facilities has a maximum borrowing capacity of $1,432 million . The term loan facilities generally amortize in monthly installments. The borrowing capacity under the term loan facilities is determined by applying an advance rate in the range of 80% to 90% against the net book values of designated eligible containers, which is determined under the terms of each facility. Asset-Backed Warehouse Facility The asset-backed warehouse facility has a maximum borrowing capacity of $750.0 million . Under the facility, funds are available on a revolving basis until October 10, 2017 , after which if the facility is not refinanced, the notes will convert to term notes with a maturity date of October 10, 2021 . The term notes will amortize on a level basis over the four year term period to 60% of the outstanding balance. The Company primarily uses the proceeds of this facility to finance the acquisition of equipment. The borrowing capacity under the asset-backed warehouse facility is determined by applying the advance rate of 81% against the sum of the net book values of designated eligible containers and accounts receivable for sold containers not outstanding more than 60 days plus 100% of restricted cash. The net book value for purposes of calculating the Company's borrowing capacity is the original equipment cost depreciated over 13, 12, and 20 years to 40%, 25%, and 15% of original equipment cost for dry containers, refrigerated containers, and tank containers, respectively. The Company is required to maintain restricted cash balances on deposit in a designated bank account equal to three months of interest expense. Revolving Credit Facilities The Company’s three revolving credit facilities, TCIL Revolver due April 2021, TALICC Revolver due March 2018, and TALICC Revolver due May 2020, have a total commitment amount of $1.1 billion . On April 15, 2016, TCIL and a group of commercial banks entered into an amendment and restatement of the TCIL Revolver providing for the extension of the facility termination date from November 4, 2016 to April 15, 2021, and the reduction of the aggregate commitment amount thereunder from $600.0 million (which was shared under the prior TCIL Revolver with the TCI Credit Facility) to an aggregate commitment, available to TCIL only, of $300.0 million . An accordion feature provided for up to $300.0 million of increased and/or additive commitments for TCIL (for a total of up to $600.0 million of aggregate commitments). No changes were made to the borrowing base or to the pricing of the TCIL Revolver. On May 23, 2016, the aggregate commitments under the TCIL Revolver were increased to $555.0 million pursuant to the accordion feature. On August 31, 2016, the aggregate commitments under the TCIL Revolver were increased to $600.0 million . Note 5—Debt (continued) The credit facilities do not provide for joint liability among the borrowers and the borrowings thereunder are secured solely by the assets of the respective borrowers. As of December 31, 2016 , the available commitment amount under the TCIL Revolver, TALICC Revolver due March 2018, and TALICC Revolver due May 2020 was $216.3 million , $150.0 million , and $25.0 million , respectively. These commitment amounts may be limited by borrowing bases that restrict borrowing capacity to an established percentage of relevant assets. The Credit Facilities bear a commitment fee which ranges from 0.25% to 0.35% (also based on each Borrower’s senior secured debt rating as issued by S&P) on the unused portion of the Credit Facilities. In addition, an administrative fee is payable to the agent bank annually in advance. Debt maturities excluding capital lease obligations (amounts in thousands): Years ending December 31, 2017 $ 584,459 2018 950,921 2019 1,052,050 2020 835,035 2021 1,545,649 2022 and thereafter 1,350,775 Total $ 6,318,889 Capital Lease Obligations The Company has entered into a series of direct finance lease transactions with various financial institutions to finance chassis and containers. Each lease is accounted for as a capital lease, with interest expense recognized on a level yield basis over the period preceding early purchase options, if any, which is generally three to ten years from the transaction date. These agreements have fixed interest rates ranging from 3.21% to 5.72% , and mature between 2017 and 2024 . At December 31, 2016 , future lease payments under these capital leases were as follows (in thousands): Years ending December 31, 2017 $ 29,787 2018 27,584 2019 6,840 2020 6,396 2021 6,396 2022 and thereafter 31,454 Total future payments 108,457 Less: amount representing interest (11,682 ) Capital lease obligations $ 96,775 Deferred Financing Costs Deferred financing costs represent the fees incurred in connection with the Company's debt obligations, and are amortized using the effective interest method or on a straight-line basis over the term of the related obligation, depending on the type of debt obligation to which they relate. Unamortized deferred financing costs are written off when the related debt obligations are refinanced or extinguished prior to maturity, and are determined to be an extinguishment of debt. During 2016 and 2015, unamortized deferred financings costs of $0.1 million and $1.2 million were written off, respectively. |
Schedule of debt instruments | . At December 31, 2016 , future lease payments under these capital leases were as follows (in thousands): Years ending December 31, 2017 $ 29,787 2018 27,584 2019 6,840 2020 6,396 2021 6,396 2022 and thereafter 31,454 Total future payments 108,457 Less: amount representing interest (11,682 ) Capital lease obligations $ 96,775 Debt maturities excluding capital lease obligations (amounts in thousands): Years ending December 31, 2017 $ 584,459 2018 950,921 2019 1,052,050 2020 835,035 2021 1,545,649 2022 and thereafter 1,350,775 Total $ 6,318,889 Debt consisted of the following (amounts in thousands): December 31, 2016 December 31, 2015 Institutional notes $ 2,233,874 $ 2,140,857 Asset-backed securitization term notes 1,384,235 557,144 Term loan facilities 1,332,030 331,500 Asset-backed warehouse facility 660,000 — Revolving credit facilities 708,750 142,750 Capital lease obligations 96,775 13,676 Total debt outstanding 6,415,664 3,185,927 Deferred financing costs (19,999 ) (19,024 ) Unamortized fair value debt adjustment (42,216 ) — Debt, net of unamortized deferred financing costs $ 6,353,449 $ 3,166,903 |
Schedule of debt maturities (excluding capital lease obligations) | |
Schedule of future lease payments under these capital leases | eferred financing costs represent the fees incurred in connection with the Company's debt obligations, and are amortized using the effective interest method or on a straight-line basis over the term of the related obligation, depending on the type of debt obligation to which they relate. Unamortized deferred financing costs are written off when the related debt obligations are refinanced or extinguished prior to maturity, and are determined to be an extinguishment of debt. During 2016 and 2015, unamortized deferred financings costs of $0.1 million and $1.2 million were written off, respectively. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of interest rate swap contracts | As of December 31, 2016 , the Company had net interest rate swap agreements in place to fix the floating interest rates on a portion of the borrowings under its debt facilities as summarized below: Derivatives Net Notional Amount Weighted Average Fixed Leg (Pay) Interest Rate Cap Rate Weighted Average Interest rate swaps $1,596.5 million 1.73% —% 4.8 years Interest rate caps $84.5 million —% 4.0% 0.8 years |
Schedule of fair value of derivative instruments | Location of Derivative Instruments in Financial Statements Fair Value of Derivative Instruments (In Millions) Asset Derivatives Liability Derivatives December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate swap contracts, designated as cash flow hedges Fair value of derivative instruments $ 0.5 Fair value of derivative instruments $ — Fair value of derivative instruments $ 8.7 Fair value of derivative instruments $ — Interest rate swap contracts, not designated Fair value of derivative instruments 5.2 Fair value of derivative instruments 2.2 Fair value of derivative instruments 0.7 Fair value of derivative instruments 0.3 Total derivatives $ 5.7 $ 2.2 $ 9.4 $ 0.3 |
Schedule of derivatives instruments and their effect on consolidated statements of operations and consolidated statements of comprehensive income | Effect of Derivative Instruments on Consolidated Statements of Operations and Location of Loss (Gain) on Derivative Instruments Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Realized loss on non-designated interest rate swap agreements Realized loss on derivative instruments, net $ 3.4 $ 5.5 $ 9.4 Change in fair value of derivatives, designated as cash flow hedges Other comprehensive income (46.9 ) — — Realized loss on designated interest rate swap agreements Interest and debt expense 1.2 — — Net (gain) loss on interest rate swaps, not designated Unrealized (gain) loss on derivative instruments, net (4.4 ) 2.2 3.8 |
Net Investment in Finance Lea34
Net Investment in Finance Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases, Capital [Abstract] | |
Schedule of components of the net investment in finance leases | The following table represents the components of the net investment in finance leases (in thousands): December 31, December 31, Future minimum lease payment receivable (1) $ 354,338 $ 90,054 Estimated residual receivable 65,793 108 Allowance on gross finance lease receivables (527 ) (526 ) Gross finance lease receivables, net of allowance 419,604 89,636 Unearned income (2) (72,794 ) (22,980 ) Net investment in finance leases (3) $ 346,810 $ 66,656 _______________________________________________________________________________ (1) At the inception of the lease, the Company records the total minimum lease payments net of executory costs, if any. The gross finance lease receivable is reduced as billed to the customer and reclassified to accounts receivable until paid. There were no executory costs included in gross finance lease receivables as of December 31, 2016 and 2015 . (2) The difference between the gross finance lease receivable and the fair value of the equipment at the lease inception is recorded as unearned income. Unearned income together with initial direct costs, are amortized to income over the lease term so as to produce a constant periodic rate of return. There were no unamortized initial direct costs as of December 31, 2016 and 2015 . (3) As of December 31, 2016 , approximately 43% of the Company's net investment in finance leases were with CMA CGM. As of December 31, 2016 , approximately 23% of the Company's net investment in finance leases were with Hapag Lloyd AG. As of December 31, 2016 and 2015 , approximately 7% and 40% , respectively, of the Company's net investment in finance leases were with Container Investment Limited. As of December 31, 2016 and 2015 , approximately 3% and 15% , respectively, of the Company's net investment in finance leases were with Tristar Container Services. |
Schedule of contractual maturities of the Company’s gross finance lease receivables | Contractual maturities of the Company’s gross finance lease receivables subsequent to December 31, 2016 are as follows (in thousands): Years ending December 31, 2017 $ 82,016 2018 74,524 2019 69,137 2020 79,106 2021 45,189 2022 and thereafter 70,159 Total $ 420,131 |
Schedule of categories of gross finance lease receivables based on the Company's internal customer credit ratings | |
Schedule of activity of allowance on gross finance lease receivables | The following table represents the activity of the Company's allowance on gross finance lease receivables for the periods presented (in thousands): Beginning Balance Additions/ Ending Balance Finance Lease—Allowance for doubtful accounts: For the year ended December 31, 2016 $ 526 $ 1 $ 527 For the year ended December 31, 2015 $ 526 $ — $ 526 For the year ended December 31, 2014 $ 526 $ — $ 526 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Restricted share activity for the year ended December 31, 2016 was as follows: Number of Shares Outstanding Weighted Average Grant Date Fair Value TCIL converted restricted stock at July 12, 2016 113,942 $ 13.68 TAL converted restricted stock at July 12, 2016 140,000 10.89 Granted 418,022 14.55 Vested(1)(2) (36,772 ) 10.91 Nonvested at December 31, 2016 635,192 $ 13.31 ______________________________________________________________________________ (1) The fair value of restricted stock awards that vested during 2016 was $0.5 million . (2) Plan participants tendered 14,290 common shares, all of which were subsequently retired by the Company, to satisfy payment in certain instances, of withholding taxes, for a portion of the restricted stock vested during the year ended December 31, 2016 . | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following assumptions were used to determine the fair value of the service based options at the dates above: Expected term of service-based options 5.56 years Expected common share price volatility 35% Expected dividends —% Expected forfeitures —% Risk-free interest rates (Treasury rate for expected term) 1.75% | |
Schedule of accumulated other comprehensive (loss) | Accumulated other comprehensive income (loss) consisted of the following as of the dates indicated (in thousands and net of tax effects): Cash Flow Foreign Accumulated Other Comprehensive (Loss) Income Balance as of December 31, 2015 $ — $ (3,666 ) $ (3,666 ) Change in fair value of derivative instruments designated as cash flow hedges 30,405 — 30,405 Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges 777 — 777 Foreign currency translation adjustment — (758 ) (758 ) Other comprehensive income (loss) 31,182 (758 ) 30,424 Balance as of December 31, 2016 $ 31,182 $ (4,424 ) $ 26,758 Foreign Accumulated Other Comprehensive (Loss) Balance as of December 31, 2014 $ (3,258 ) $ (3,258 ) Foreign currency translation adjustment (408 ) (408 ) Other comprehensive (loss) (408 ) (408 ) Balance as of December 31, 2015 $ (3,666 ) $ (3,666 ) | Foreign Accumulated Other Comprehensive (Loss) Balance as of December 31, 2014 $ (3,258 ) $ (3,258 ) Foreign currency translation adjustment (408 ) (408 ) Other comprehensive (loss) (408 ) (408 ) Balance as of December 31, 2015 $ (3,666 ) $ (3,666 ) |
Schedule of reclassifications out of accumulated other comprehensive (loss) | The following table presents reclassifications out of Accumulated other comprehensive income (loss) for the period indicated (in thousands): Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Operations December 31, 2016 December 31, 2015 Amounts reclassified from Accumulated other comprehensive (loss) before income tax 1,200 — Interest and debt expense Income tax (benefit) (423 ) — Income tax expense Amounts reclassified from Accumulated other comprehensive (loss) $ 777 $ — Net income | |
Market-based Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | The market-based options granted and the weighted-average exercise price for the periods indicated below were as follows: Market-based Options Number of Class A Common Shares Underlying Options Weighted-Average Exercise Price Number of Class A Common Shares Underlying Exercisable Options Exercisable Weighted-Average Price Balance at December 31, 2013 5,326,613 $ 19.66 — — Granted during this period — — — — Exercised during this period — — — — Forfeited during this period — — — — Balance at December 31, 2014 5,326,613 $ 19.66 — — Granted during this period — — — — Exercised during this period — — — — Settled/cancelled during this period (5,326,613 ) (19.66 ) — — Balance at December 31, 2015 — $ — — — | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ||
Service-based Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | The service-based options granted and the weighted-average exercise price for the periods indicated below were as follows: Service-based Options Number of Class A Common shares Underlying Options Weighted-Average Exercise Price Number of Class A Common Shares Underlying Exercisable Options Exercisable Weighted-Average Price Balance at December 31, 2013 2,659,363 $ 19.66 1,051,181 $ 19.42 Granted during this period — — — — Exercised during this period (12,551 ) (19.42 ) — — Forfeited during this period — — — — Balance at December 31, 2014 2,646,812 $ 19.66 1,573,640 $ 19.50 Granted during this period — — — — Exercised during this period — — — — Forfeited during this period (3,138 ) (19.42 ) — — Balance at December 31, 2015 2,643,674 $ 19.66 2,102,375 $ 19.54 Granted during this period — — — — Exercised during this period — — — — Settled / cancelled during this period (2,643,674 ) (19.66 ) (2,102,375 ) (19.54 ) Balance at December 31, 2016 — $ — — $ — | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] |
Segment and Geographic Inform36
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The following tables show segment information for the periods indicated and the consolidated totals reported (dollars in thousands): Year Ended December 31, 2016 Equipment Equipment Totals Total leasing revenues $ 827,111 $ 1,583 $ 828,694 Trading margin — 618 618 Net (loss) on sale of leasing equipment (20,347 ) — (20,347 ) Depreciation and amortization expense 392,250 342 392,592 Interest and debt expense 183,377 637 184,014 Realized loss on derivative instruments, net 3,438 — 3,438 Income before income taxes(1) (6,302 ) (3,795 ) (10,097 ) Equipment held for sale at December 31 81,804 18,059 99,863 Goodwill at December 31 220,864 15,801 236,665 Total assets at December 31 8,660,786 52,785 8,713,571 Purchases of leasing equipment and investments in finance leases(2) 629,176 156 629,332 Year Ended December 31, 2015 Equipment Equipment Totals Total leasing revenues $ 707,839 $ — $ 707,839 Trading margin — — — Net gain on sale of leasing equipment 2,013 — 2,013 Depreciation and amortization expense 300,470 — 300,470 Interest and debt expense 140,644 — 140,644 Realized loss on derivative instruments, net 5,496 — 5,496 Income before income taxes(1) 135,127 — 135,127 Equipment held for sale at December 31 — — — Goodwill at December 31 — — — Total assets at December 31 4,658,997 — 4,658,997 Purchases of leasing equipment and investments in finance leases(2) 398,799 — 398,799 Year Ended December 31, 2014 Equipment Equipment Totals Total leasing revenues $ 707,215 $ — $ 707,215 Trading margin — — — Net gain on sale of leasing equipment 31,616 — 31,616 Depreciation and amortization expense 258,489 — 258,489 Interest and debt expense 137,370 — 137,370 Realized loss on derivative instruments, net 9,385 — 9,385 Income before income taxes(1) 188,802 — 188,802 Equipment held for sale at December 31 — — — Goodwill at December 31 — — — Total assets at December 31 4,863,259 — 4,863,259 Purchases of leasing equipment and investments in finance leases(2) 809,446 — 809,446 _______________________________________________________________________________ (1) Segment income before income taxes excludes unrealized gains on interest rate swaps of $4.4 million , unrealized losses on interest rate swaps of $2.2 million , and unrealized losses on interest swaps of $3.8 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively, and the write-off of deferred financing costs of $0.1 million , $1.2 million , and $7.5 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. (2) Represents cash disbursements for purchases of leasing equipment and investments in finance lease as reflected in the consolidated statements of cash flows for the periods indicated, but excludes cash flows associated with the purchase of equipment held for resale. |
Geographic allocation of revenues for the periods indicated based on the customers primary domicile and allocates equipment trading revenue based on the location of sale | The following table represents the geographic allocation of equipment trading revenues for the years ended December 31, 2016 (the Company had no equipment trading revenues in 2015 and 2014 ) based on the location of sale (in thousands): 2016 Total revenues: Asia $ 7,410 Europe 4,439 North America / South America 3,082 Other International 1,487 Total $ 16,418 The following table represents the geographic allocation of equipment leasing revenues for the years ended December 31, 2016 , 2015 , and 2014 based on customers' primary domicile (in thousands): 2016 2015 2014 Total revenues: Asia $ 397,500 $ 403,910 $ 393,642 Europe 334,118 226,905 218,642 North America / South America 58,945 41,566 60,090 Bermuda 464 120 45 Other International 37,667 35,338 34,796 Total $ 828,694 $ 707,839 $ 707,215 |
Income Taxes Income Tax Expense
Income Taxes Income Tax Expense (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of Unrecognized Tax Benefits | Unrecognized tax benefit amounts for the periods indicated below were as follows (in thousands): December 31, 2016 December 31, 2015 Beginning balance at January 1 $ 7,345 $ 7,395 Increase related to current year’s tax position 1,233 1,260 Lapse of statute of limitations (791 ) (678 ) Foreign exchange adjustment (10 ) (632 ) Ending balance at December 31 $ 7,777 $ 7,345 |
Summary of Income Tax Interest and Penalties | Interest and penalty expense for the periods indicated below were as follows (in thousands): Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Interest expense (benefit) $ 121 $ 15 $ 21 Penalty expense (29 ) (98 ) 68 |
Schedule of Components of Income Tax Expense (Benefit) | The components of income taxes and other taxes payable included in accounts payable and other accrued expenses on the consolidated balance sheets were as follows (in thousands): December 31, 2016 December 31, 2015 Corporate income taxes payable $ 32 $ 194 Unrecognized tax benefits 7,777 7,345 Interest accrued 680 559 Penalties 625 654 Income taxes payable 9,114 8,752 Other taxes payable 456 3,985 Total income taxes and other taxes payable $ 9,570 $ 12,737 The following table sets forth the income tax expense for the periods indicated (in thousands): 2016 2015 2014 Current taxes: Bermuda $ — $ — $ — U.S. (80 ) 487 1,143 Foreign 841 208 955 $ 761 $ 695 $ 2,098 Deferred taxes: Bermuda $ — $ — $ — U.S. (709 ) 3,327 4,160 Foreign (100 ) 26 (26 ) $ (809 ) $ 3,353 $ 4,134 Total income taxes $ (48 ) $ 4,048 $ 6,232 |
Schedule of Income before Income Tax, Domestic and Foreign | The components of (loss) income before income taxes for the periods indicated below were as follows (in thousands): 2016 2015 2014 Bermuda sources $ — $ — $ — U.S. Sources (7,451 ) 10,985 13,310 Foreign sources 1,618 120,732 164,226 (Loss) income before income taxes $ (5,833 ) $ 131,717 $ 177,536 |
Schedule of Effective Income Tax Rate Reconciliation | The difference between the Bermuda statutory income tax rate and the effective tax rate on the consolidated statements of operations for the periods indicated below were as follows: 2016 2015 2014 Bermuda tax rate — % — % — % U.S. income taxed at other than the statutory rate 41.68 % 3.01 % 2.72 % Effect of uncertain tax positions (10.16 )% — % — % Foreign income taxed at other than the statutory rate (4.15 )% 0.23 % 0.58 % Change in enacted tax rate — % — % 0.39 % Effect of permanent differences, including non-deductible transaction costs (1.58 )% 0.05 % (0.16 )% Other discrete items related to share compensation (24.97 )% (0.22 )% (0.02 )% Effective income tax rate 0.82 % 3.07 % 3.51 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities are comprised of the following (in thousands): December 31, 2016 December 31, 2015 Deferred income tax assets: Net operating loss carryforwards $ 273,055 $ 623 Passive activity loss carryforwards 12 135 Allowance for losses 4,250 106 Derivative instruments 5,514 — Deferred income 35 60 Accrued liabilities and other payables 2,233 2,354 Total gross deferred tax assets 285,099 3,278 Less: Valuation allowance (286 ) (525 ) Net deferred tax assets $ 284,813 $ 2,753 Deferred income tax liabilities: Accelerated depreciation 516,472 21,448 Goodwill and other intangible amortization 2,639 — Derivative instruments 287 30 Deferred income 71,359 — Deferred partnership income (loss) (TCI) 1,765 1,845 Other 9,607 — Total gross deferred tax liability 602,129 23,323 Net deferred income tax liability $ 317,316 $ 20,570 |
Rental Income under Operating38
Rental Income under Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases, Operating [Abstract] | |
Schedule of Operating Leases Future Minimum Payments Receivable [Table Text Block] | The following are the minimum future rentals at December 31, 2016 due to Triton under non-cancelable operating leases, assuming the minimum contractual lease term, of the Company’s equipment (in thousands): Years ending December 31, 2017 $ 645,526 2018 498,325 2019 378,722 2020 274,852 2021 176,970 2022 and thereafter 195,557 Total $ 2,169,952 |
Commitments and Contingencies S
Commitments and Contingencies Schedule of Future Minimum Rental Payments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments [Table Text Block] | he retention bonus liability balance is as follows: (in thousands) Total Balance at December 31, 2013 $ 12,262 Accrual 4,239 Payments (302 ) Balance at December 31, 2014 16,199 Accrual 3,921 Payments (992 ) Balance at December 31, 2015 19,128 Liability acquired 4,082 Accrual 7,384 Payments (5,419 ) Balance at December 31, 2016 $ 25,175 The severance balance is as follows: (in thousands) Total Balance at December 31, 2015 $ — Accrual 33,991 Payments (13,273 ) Balance at December 31, 2016 $ 20,718 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum rental commitments under non-cancelable operating leases having an original term of more than one year as of December 31, 2016 were as follows (in thousands): Years ending December 31, 2017 $ 2,623 2018 3,332 2019 999 2020 206 2021 and thereafter 52 Total $ 7,212 |
Selected Quarterly Financial 40
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | The following table sets forth certain key interim financial information for the years ended December 31, 2016 and 2015 : (In thousands, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2016 Total leasing revenues $ 163,025 $ 158,333 $ 247,789 $ 259,547 Trading margin $ — $ — $ 232 $ 386 Net (loss) on sale of leasing equipment $ (1,837 ) $ (1,930 ) $ (12,319 ) $ (4,261 ) Net income (loss) attributable to shareholders $ 8,742 $ 6,174 $ (51,211 ) $ 22,778 Net (loss) income per basic common share $ 0.22 $ 0.15 $ (0.74 ) $ 0.31 Net (loss) income per diluted common share $ 0.22 $ 0.15 $ (0.74 ) $ 0.31 2015 Total leasing revenues $ 180,131 $ 178,989 $ 175,719 $ 173,000 Trading margin $ — $ — $ — $ — Net gain (loss) on sale of leasing equipment $ 5,248 $ 1,077 $ (3,254 ) $ (1,058 ) Net income attributable to shareholders $ 40,870 $ 36,241 $ 21,158 $ 12,820 Net income per basic common share $ 1.02 $ 0.91 $ 0.53 $ 0.32 Net income per diluted common share $ 0.96 $ 0.87 $ 0.52 $ 0.32 |
Related Party (Tables)
Related Party (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | Payments made to IAS for the years ended December 31, 2016 and 2015 were as follows: (in thousands) December 31, 2016 December 31, 2015 Payments to IAS $ 136 $ 780 Marine Container Services (India) Private Limited (“MCS”) is a related party, as MCS is party to a joint venture agreement with TCIL. Payments made to MCS for services related primarily to container operations for the periods indicated below were as follows: (in thousands) December 31, 2016 December 31, 2015 Payments to MCS $ 183 $ 208 TCIL holds a 50% interest in TriStar Container Services (Asia) Private Limited (“TriStar”) which is primarily engaged in the selling and leasing of container equipment in the domestic and short sea markets in India. TCIL includes an equity investment in TriStar on the balance sheet included in “Other assets”. TCIL has direct finance leases and a loan payable with TriStar. (in thousands) December 31, 2016 December 31, 2015 Payments received from TriStar on direct finance leases $ 1,670 $ 1,091 Payments received from TriStar on loan payable $ 45 $ 6 Direct finance lease balance $ 10,636 $ 10,207 Loan payable balance $ 126 $ 210 |
Business and Basis of Present42
Business and Basis of Presentation (Details) | Jul. 12, 2016 |
TAL [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Business Acquisition, Percentage of Voting Interests Acquired | 45.00% |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Mediterranean Shipping Company [Member] | Operating and Capital Leases Billing [Member] [Domain] | Credit Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 15.00% | |||
Mediterranean Shipping Company [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 7.00% | |||
Mediterranean Shipping Company [Member] | Operating and Capital Leases Income Statement Lease Revenue | Credit Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 17.00% | 16.00% | ||
CMACGN | Operating and Capital Leases Billing [Member] [Domain] | Credit Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 17.00% | |||
CMACGN | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 23.00% | |||
Hanjin Shipping Co. [Member] | ||||
Concentration Risk [Line Items] | ||||
Provisions for Doubtful Accounts and Insurance Deductible Expense | $ 29.7 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Leasing Equipment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 15 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Oct. 01, 2015 | |
Property, Plant and Equipment [Line Items] | ||||||||||||||
Net (loss) gain on sale of leasing equipment | $ (4,261,000) | $ (12,319,000) | $ (1,930,000) | $ (1,837,000) | $ (1,058,000) | $ (3,254,000) | $ 1,077,000 | $ 5,248,000 | $ (20,347,000) | $ 2,013,000 | $ 31,616,000 | |||
Property Subject to or Available for Operating Lease, Net | 7,370,519,000 | 4,362,043,000 | 7,370,519,000 | 4,362,043,000 | $ 7,370,519,000 | |||||||||
Property Available for Operating Lease, Net | 524,900,000 | 319,300,000 | 524,900,000 | 319,300,000 | $ 524,900,000 | |||||||||
Dry Container Units 20 Foot | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Useful Lives | 12 years | 13 years | ||||||||||||
Residual values from date of manufacture | 1,000 | $ 1,000 | $ 1,000 | |||||||||||
Dry Container Units 40 Foot [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Useful Lives | 12 years | 13 years | ||||||||||||
Residual values from date of manufacture | 1,300 | $ 1,300 | 1,200 | |||||||||||
Dry Container Units 40 Foot High Cube [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Useful Lives | 12 years | 13 years | ||||||||||||
Residual values from date of manufacture | 1,700 | $ 1,700 | 1,400 | |||||||||||
Refrigerated Container Units 20 Foot [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Useful Lives | 12 years | 12 years | ||||||||||||
Residual values from date of manufacture | 2,250 | $ 2,250 | ||||||||||||
Refrigerated Container Units 40 Foot High Cube [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Useful Lives | 12 years | 12 years | ||||||||||||
Residual values from date of manufacture | 3,250 | $ 3,250 | ||||||||||||
Special Container Units 40 Foot Flat Rack [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Useful Lives | 12 years | |||||||||||||
Residual values from date of manufacture | 3,000 | $ 3,000 | ||||||||||||
Special Container Units 40 Foot Open Top [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Useful Lives | 12 years | |||||||||||||
Residual values from date of manufacture | $ 2,500 | $ 2,500 | ||||||||||||
Dry container units | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Property Subject to or Available for Operating Lease, Net | 4,839,648,000 | 2,743,150,000 | 4,839,648,000 | 2,743,150,000 | $ 4,839,648,000 | |||||||||
Refrigerated container units | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Property Subject to or Available for Operating Lease, Net | 2,037,952,000 | 1,497,100,000 | 2,037,952,000 | 1,497,100,000 | 2,037,952,000 | |||||||||
Special container units | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Property Subject to or Available for Operating Lease, Net | 265,666,000 | 121,793,000 | 265,666,000 | 121,793,000 | $ 265,666,000 | |||||||||
Tank Container Units [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Useful Lives | 20 years | |||||||||||||
Residual values from date of manufacture | 3,000 | |||||||||||||
Property Subject to or Available for Operating Lease, Net | 107,933,000 | 0 | 107,933,000 | 0 | $ 107,933,000 | |||||||||
Chassis [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Useful Lives | 20 years | |||||||||||||
Residual values from date of manufacture | $ 1,200 | |||||||||||||
Property Subject to or Available for Operating Lease, Net | $ 119,320,000 | $ 0 | 119,320,000 | 0 | $ 119,320,000 | |||||||||
Long Lived Assets Held-for-sale, Name [Domain] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Net (loss) gain on sale of leasing equipment | (19,399,000) | 0 | 0 | |||||||||||
Equipment, net of selling costs [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Net (loss) gain on sale of leasing equipment | $ (948,000) | $ 2,013,000 | $ 31,616,000 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jul. 12, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||||
Goodwill | $ 236,665 | $ 236,665 | $ 0 | $ 0 |
Equipment leasing | ||||
Goodwill [Line Items] | ||||
Goodwill | 220,864 | 0 | 0 | |
Equipment trading | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 15,801 | $ 0 | $ 0 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||
Net (loss) gain on sale of leasing equipment | $ (4,261) | $ (12,319) | $ (1,930) | $ (1,837) | $ (1,058) | $ (3,254) | $ 1,077 | $ 5,248 | $ (20,347) | $ 2,013 | $ 31,616 |
Debt, Unamortized Deferred Financing Costs | 19,999 | 19,024 | 19,999 | 19,024 | |||||||
Debt, net of unamortized deferred financing costs of $19,999 and $19,024 | 6,353,449 | 3,166,903 | 6,353,449 | 3,166,903 | |||||||
Debt, net of unamortized deferred financing costs of $19,999 and $19,024 | 6,415,664 | 3,185,927 | 6,415,664 | 3,185,927 | |||||||
Reported value | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||
Debt, net of unamortized deferred financing costs of $19,999 and $19,024 | 6,373,448 | 3,185,927 | 6,373,448 | 3,185,927 | |||||||
Level 2 | Estimate of fair value | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||
Debt, net of unamortized deferred financing costs of $19,999 and $19,024 | $ 6,316,229 | $ 3,256,284 | 6,316,229 | 3,256,284 | |||||||
Long Lived Assets Held-for-sale, Name [Domain] | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||
Net (loss) gain on sale of leasing equipment | $ (19,399) | $ 0 | $ 0 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Other Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)industrysegment$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)shares | Aug. 31, 2016USD ($) | Oct. 01, 2015USD ($) | |
Impairment [Line Items] | |||||||||||||
Net (loss) gain on sale of leasing equipment | $ (4,261,000) | $ (12,319,000) | $ (1,930,000) | $ (1,837,000) | $ (1,058,000) | $ (3,254,000) | $ 1,077,000 | $ 5,248,000 | $ (20,347,000) | $ 2,013,000 | $ 31,616,000 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 169,403 | 65,237 | 82,269 | ||||||||||
Number of Industries in which Business Activities Conducted | industry | 1 | ||||||||||||
Number of Reportable Segments | segment | 2 | ||||||||||||
Provision (reversal) for doubtful accounts | $ 23,304,000 | $ (2,156,000) | $ 1,324,000 | ||||||||||
Insurance receivable | $ 17,170,000 | $ 0 | 17,170,000 | 0 | |||||||||
Long Lived Assets Held-for-sale, Name [Domain] | |||||||||||||
Impairment [Line Items] | |||||||||||||
Net (loss) gain on sale of leasing equipment | (19,399,000) | 0 | 0 | ||||||||||
Equipment, net of selling costs [Member] | |||||||||||||
Impairment [Line Items] | |||||||||||||
Net (loss) gain on sale of leasing equipment | $ (948,000) | $ 2,013,000 | $ 31,616,000 | ||||||||||
Common Class A [Member] | |||||||||||||
Impairment [Line Items] | |||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0 | $ 0.01 | $ 0 | $ 0.01 | |||||||||
Refrigerated Container Units 20 Foot [Member] | |||||||||||||
Impairment [Line Items] | |||||||||||||
Property Subject to or Available for Operating Lease Net Salvage Value | 2,250 | ||||||||||||
Dry Container Units 40 Foot [Member] | |||||||||||||
Impairment [Line Items] | |||||||||||||
Property Subject to or Available for Operating Lease Net Salvage Value | 1,300 | $ 1,200 | |||||||||||
Dry Container Units 40 Foot High Cube [Member] | |||||||||||||
Impairment [Line Items] | |||||||||||||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 1,700 | $ 1,400 | |||||||||||
Triton Container Investments LLC [Member] | |||||||||||||
Impairment [Line Items] | |||||||||||||
Equity Method Investment, Ownership Percentage | 53.40% | 51.70% | 53.40% | 51.70% | |||||||||
Leasing Equipment [Member] | |||||||||||||
Impairment [Line Items] | |||||||||||||
Asset Impairment Charges | $ 13,100,000 | $ 7,200,000 | |||||||||||
Hanjin Shipping Co. [Member] | |||||||||||||
Impairment [Line Items] | |||||||||||||
Number of Units Leased | 87,000 | ||||||||||||
Leased Property Net Book Value | $ 243,300,000 | ||||||||||||
Loss On Deferred Revenue | $ 15,900,000 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies Residual Values (Details) - USD ($) | 9 Months Ended | 15 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 01, 2015 | |
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease, Net | $ 7,370,519,000 | $ 4,362,043,000 | ||
TIL_ChangeInAccountingEstimateFinancialEffectPreTax | 1,800,000 | |||
TIL-ChangeInAccountingEstimateFinancialEffectPerShare | 0.05 | |||
Special Container Units [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease, Net | $ 265,666,000 | 121,793,000 | ||
Dry Container Units 20 Foot [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease Net Useful Life Average | 12 years | 13 years | ||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 1,000 | $ 1,000 | ||
Dry Container Units 40 Foot [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease Net Useful Life Average | 12 years | 13 years | ||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 1,300 | 1,200 | ||
Dry Container Units 40 Foot High Cube [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease Net Useful Life Average | 12 years | 13 years | ||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 1,700 | 1,400 | ||
Refrigerated Container Units 20 Foot [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease Net Useful Life Average | 12 years | 12 years | ||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 2,250 | |||
Refrigerated Container Units 40 Foot High Cube [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease Net Useful Life Average | 12 years | 12 years | ||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 3,250 | |||
Special Container Units 40 Foot Flat Rack [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease Net Useful Life Average | 12 years | |||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 3,000 | |||
Special Container Units 40 Foot Open Top [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease Net Useful Life Average | 12 years | |||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 2,500 | |||
Tank Container Units [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease, Net | $ 107,933,000 | 0 | ||
Property Subject to or Available for Operating Lease Net Useful Life Average | 20 years | |||
Property Subject to or Available for Operating Lease Net Salvage Value | 3,000 | |||
Chassis [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease, Net | $ 119,320,000 | 0 | ||
Property Subject to or Available for Operating Lease Net Useful Life Average | 20 years | |||
Property Subject to or Available for Operating Lease Net Salvage Value | 1,200 | |||
Dry Container Units [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease, Net | $ 4,839,648,000 | 2,743,150,000 | ||
Refrigerated Container Units [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease, Net | 2,037,952,000 | $ 1,497,100,000 | ||
Maximum [Member] | Refrigerated Container Units 20 Foot [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease Net Salvage Value | 2,500 | |||
Maximum [Member] | Refrigerated Container Units 40 Foot High Cube [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 3,500 | |||
Maximum [Member] | Special Container Units 40 Foot Flat Rack [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease Net Useful Life Average | 14 years | |||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 3,000 | |||
Maximum [Member] | Special Container Units 40 Foot Open Top [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease Net Useful Life Average | 14 years | |||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 2,500 | |||
Minimum [Member] | Refrigerated Container Units 20 Foot [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease Net Salvage Value | 2,250 | |||
Minimum [Member] | Refrigerated Container Units 40 Foot High Cube [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease Net Salvage Value | 3,250 | |||
Minimum [Member] | Special Container Units 40 Foot Flat Rack [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease Net Useful Life Average | 12 years | |||
Property Subject to or Available for Operating Lease Net Salvage Value | 1,500 | |||
Minimum [Member] | Special Container Units 40 Foot Open Top [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease Net Useful Life Average | 12 years | |||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 2,300 |
Business Combination (Details)
Business Combination (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 12, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 50,349 | ||||||||||||
trtn_BusinessCombinationsRestrictedCashandCashEquivalents | 59,115 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 75,846 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Equipment | 3,052,693 | ||||||||||||
trtn_BusinessCombinationCapitalLeasesNetInvestmentinDirectFinancingLeases | 159,885 | ||||||||||||
trtn_BusinessCombinationAssetsHeldforsaleNotPartofDisposal | 80,655 | ||||||||||||
Goodwill | $ 236,665 | $ 0 | $ 236,665 | $ 236,665 | $ 0 | $ 0 | 236,665 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 32,084 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 302,757 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | (63,858) | ||||||||||||
trtn_BusinessCombinationDerivativeInstruments | (64,206) | ||||||||||||
trtn_BusinessCombinationRecognizedIdentifiableAssetsAcquiredandLiabilitiesAssumedLiabilitiesEquipmentPayable | (10,071) | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | (280,610) | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | (3,121,118) | ||||||||||||
Business Combination, Contingent Consideration, Asset | 510,186 | 0 | 510,186 | 510,186 | 0 | 0 | |||||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 90,031 | 90,031 | 90,031 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 62,884 | 62,884 | 62,884 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 37,184 | 37,184 | 37,184 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 22,632 | 22,632 | 22,632 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Five | 16,652 | 16,652 | 16,652 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling after Year Five | 17,215 | 17,215 | 17,215 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Remaining Total Balance | 246,598 | 246,598 | 246,598 | ||||||||||
Operating and Capital Leases Income Statement Lease Revenue | 259,547 | $ 247,789 | $ 158,333 | $ 163,025 | 173,000 | $ 175,719 | $ 178,989 | $ 180,131 | 828,694 | 707,839 | 707,215 | ||
Business Acquisition, Pro Forma Revenue | 1,076,753 | 1,198,148 | |||||||||||
Transaction and other costs | 66,916 | 22,185 | 30,477 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 302,757 | ||||||||||||
Business Acquisition, Pro Forma Net Income (Loss) | 36,015 | 180,638 | |||||||||||
Net (loss) income | 22,778 | $ (51,211) | $ 6,174 | $ 8,742 | $ 12,820 | $ 21,158 | $ 36,241 | $ 40,870 | (13,517) | 111,089 | $ 149,467 | ||
AboveMarketLeaseIntangibles [Domain] | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 88,598 | 88,598 | 88,598 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 61,451 | 61,451 | 61,451 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 36,426 | 36,426 | 36,426 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 22,632 | 22,632 | 22,632 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Five | 16,652 | 16,652 | 16,652 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling after Year Five | 17,215 | 17,215 | 17,215 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Remaining Total Balance | 242,974 | 242,974 | 242,974 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 298,457 | ||||||||||||
CustomerIntangibles [Domain] | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 1,433 | 1,433 | 1,433 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,433 | 1,433 | 1,433 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 758 | 758 | 758 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 0 | 0 | 0 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Five | 0 | 0 | 0 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling after Year Five | 0 | 0 | 0 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Remaining Total Balance | 3,624 | 3,624 | 3,624 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 4,300 | ||||||||||||
Merger Specific [Domain] | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Transaction and other costs | 60,437 | 10,280 | |||||||||||
TAL [Member] | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 45.00% | ||||||||||||
Operating and Capital Leases Income Statement Lease Revenue | 203,695 | ||||||||||||
Net (loss) income | $ (9,231) | ||||||||||||
Common Stock, Shares, Outstanding | 33.4 | ||||||||||||
Decrease in goodwill due to purchase price finalization | $ (25,300) | ||||||||||||
TCIL [Member] | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 55.00% | ||||||||||||
Common Stock, Shares, Outstanding | 40.8 | ||||||||||||
trtn_BusinessAcquisitionCommonStockShareReceivedRatio | 80.00% | ||||||||||||
Employee Compensation Costs [Member] | Merger Specific [Domain] | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Transaction and other costs | 40,360 | 3,520 | |||||||||||
Professional Fees Expense [Member] | Merger Specific [Domain] | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Transaction and other costs | 14,295 | 2,841 | |||||||||||
Legal Expense [Member] | Merger Specific [Domain] | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Transaction and other costs | 3,370 | 3,919 | |||||||||||
Other Expense [Member] | Merger Specific [Domain] | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Transaction and other costs | $ 2,412 | $ 0 | |||||||||||
Common Stock [Member] | TAL [Member] | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Share Price | $ 15.28 | ||||||||||||
Other Intangible Assets [Member] | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Finite-Lived Intangible Asset, Useful Life | 3 years 2 months | ||||||||||||
Other Intangible Assets [Member] | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Finite-Lived Intangible Asset, Useful Life | 3 years |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 50,294 | $ 22,575 |
Restricted Stock [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 1,178 | 5,707 |
Restricted Stock [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 18,906 | 13,919 |
Restricted Stock [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 30,210 | $ 2,949 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 31, 2016 | May 23, 2016 | Apr. 15, 2016 | Apr. 14, 2016 | |
Debt | |||||||
Restricted cash | $ 50,294 | $ 22,575 | |||||
Debt and Capital Lease Obligations | 6,415,664 | 3,185,927 | |||||
Debt, Unamortized Deferred Financing Costs | 19,999 | 19,024 | |||||
Adjustment to Purchase Price of Debt | (42,216) | 0 | |||||
Debt and Capital Lease Obligations, net of deferred financing costs | 6,353,449 | 3,166,903 | |||||
Debt outstanding on facilities with fixed interest rates | $ 3,265,300 | ||||||
Debt Instrument Interest Rate During Period Fixed Rate Debt | 4.40% | ||||||
Long Term Debt, Percentage Bearing Fixed Interest Rate Remaining Term | 4 years 6 months | ||||||
Debt outstanding on facilities with interest rates based on floating rate indices | $ 3,150,400 | ||||||
Debt Instrument Interest Rate During Period Variable Rate Debt | 2.54% | ||||||
Long Term Debt, Percentage Bearing Variable Interest Rate Remaining Term | 2 years 11 months | ||||||
Percentage of Debt Hedged by Interest Rate Derivatives | 75.80% | ||||||
Hedged Portion of Debt Average Remaining Maturity | 4 years 7 months | ||||||
LineOfCreditFacilityAmortizationPeriodOfConvertedTermNotes | 4 years | ||||||
LineOfCreditFacilityPercentageOfConvertedTermNotesOutstandingBalanceAmortized | 60.00% | ||||||
Debt maturities (excluding capital lease obligations) | |||||||
2,017 | $ 584,459 | ||||||
2,018 | 950,921 | ||||||
2,019 | 1,052,050 | ||||||
2,020 | 835,035 | ||||||
2,021 | 1,545,649 | ||||||
2022 and thereafter | 1,350,775 | ||||||
Total | 6,318,889 | ||||||
Future lease payments under these capital leases | |||||||
2,017 | 29,787 | ||||||
2,018 | 27,584 | ||||||
2,019 | 6,840 | ||||||
2,020 | 6,396 | ||||||
Total future payments | 108,457 | ||||||
Less: amount representing interest | (11,682) | ||||||
Capital lease obligations | 96,775 | ||||||
Capital Leases, Future Minimum Payments Due in Five Years | 6,396 | ||||||
Capital Leases, Future Minimum Payments Due Thereafter | 31,454 | ||||||
Write-off of deferred financing costs | $ 141 | 1,170 | $ 7,468 | ||||
Debt Instrument, Interest Rate During Period | 3.73% | ||||||
Interest Rate Swap [Member] | |||||||
Debt | |||||||
Net Notional Amount of Interest Rate Swaps | $ 1,596,500 | ||||||
Interest Rate Swaps Average Remaining Maturity | 4 years 10 months | ||||||
Interest Rate Swaps Derivative Average Fixed Pay Interest Rate | 1.73% | ||||||
Term Notes [Member] | |||||||
Debt | |||||||
Borrowing capacity | $ 1,432,000 | ||||||
Institutional Notes [Domain] | |||||||
Debt | |||||||
Debt and Capital Lease Obligations | 2,233,874 | 2,140,857 | |||||
Asset-backed securitization term notes | |||||||
Debt | |||||||
Debt and Capital Lease Obligations | 1,384,235 | 557,144 | |||||
Term loan facilities | |||||||
Debt | |||||||
Debt and Capital Lease Obligations | 1,332,030 | 331,500 | |||||
Asset-backed warehouse facility | |||||||
Debt | |||||||
Debt and Capital Lease Obligations | 660,000 | 0 | |||||
Borrowing capacity | $ 750,000 | ||||||
Debt Instrument, Advance Rate Used in Calculating Borrowing Capacity | 81.00% | ||||||
DebtInstrumentCovenantNumberOfInterestExpensePeriodsMaintainedAsRestrictedCashBalanceRequirementOne | 3 months | ||||||
Revolving credit facilities | |||||||
Debt | |||||||
Debt and Capital Lease Obligations | $ 708,750 | 142,750 | |||||
Borrowing capacity | 1,100,000 | $ 600,000 | |||||
Capital lease obligations | |||||||
Debt | |||||||
Debt and Capital Lease Obligations | 96,775 | $ 13,676 | |||||
Interest Rate Swap [Member] | |||||||
Debt | |||||||
Debt and Capital Lease Obligations | $ 4,861,800 | ||||||
Debt Instrument Interest Rate During Period Variable Rate Debt | 3.04% | ||||||
Minimum [Member] | |||||||
Future lease payments under these capital leases | |||||||
CapitalLeasePeriodOverWhichInterestExpenseRecognizedPrecedingEarlyPurchaseOption | 3 years | ||||||
Minimum [Member] | Term Notes [Member] | |||||||
Debt | |||||||
Debt Instrument, Advance Rate Used in Calculating Borrowing Capacity | 80.00% | ||||||
Minimum [Member] | Institutional Notes [Domain] | |||||||
Debt | |||||||
Debt Instrument, Advance Rate Used in Calculating Borrowing Capacity | 83.00% | ||||||
Minimum [Member] | Asset-backed securitization term notes | |||||||
Debt | |||||||
Debt Instrument, Advance Rate Used in Calculating Borrowing Capacity | 80.00% | ||||||
Minimum [Member] | Capital lease obligations | |||||||
Debt | |||||||
Debt, net of unamortized deferred financing costs | 3.21% | ||||||
Maximum [Member] | |||||||
Future lease payments under these capital leases | |||||||
CapitalLeasePeriodOverWhichInterestExpenseRecognizedPrecedingEarlyPurchaseOption | 10 years | ||||||
Maximum [Member] | Term Notes [Member] | |||||||
Debt | |||||||
Debt Instrument, Advance Rate Used in Calculating Borrowing Capacity | 90.00% | ||||||
Maximum [Member] | Institutional Notes [Domain] | |||||||
Debt | |||||||
Debt Instrument, Advance Rate Used in Calculating Borrowing Capacity | 85.00% | ||||||
Maximum [Member] | Asset-backed securitization term notes | |||||||
Debt | |||||||
Debt Instrument, Advance Rate Used in Calculating Borrowing Capacity | 87.00% | ||||||
Maximum [Member] | Capital lease obligations | |||||||
Debt | |||||||
Debt, net of unamortized deferred financing costs | 5.72% | ||||||
TCIL Credit Facility [Member] | Revolving credit facilities | |||||||
Debt | |||||||
Borrowing capacity | $ 600,000 | $ 555,000 | 300,000 | $ 600,000 | |||
Line of Credit Facility, Additional Borrowing Capacity From Accordion Feature | $ 300,000 | ||||||
TCIL Revolver [Member] | |||||||
Future lease payments under these capital leases | |||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 216,300 | ||||||
TALICC Revolver due March 2018 [Domain] | |||||||
Future lease payments under these capital leases | |||||||
Debt Instrument, Unused Borrowing Capacity, Amount | 150,000 | ||||||
TALICC Revolver due May 2020 [Domain] | |||||||
Future lease payments under these capital leases | |||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 25,000 |
Derivative Instruments (Details
Derivative Instruments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Interest Rate Swap [Member] | |
Derivative Instruments | |
Net Notional Amount of Interest Rate Swaps | $ 1,596.5 |
Weighted average fixed leg (Pay) interest rate (as a percent) | 1.73% |
Interest Rate Swaps Average Remaining Maturity | 4 years 10 months |
Derivative, Cap Interest Rate | 0.00% |
Interest Rate Cap [Member] | |
Derivative Instruments | |
Net Notional Amount of Interest Rate Swaps | $ 84.5 |
Weighted average fixed leg (Pay) interest rate (as a percent) | 0.00% |
Interest Rate Swaps Average Remaining Maturity | 10 months |
Derivative, Cap Interest Rate | 4.00% |
Derivative Instruments (Detai53
Derivative Instruments (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value of Derivative Instruments | ||
Fair value of derivative instruments (assets) | $ 5,743 | $ 2,153 |
Fair value of derivative instruments (liabilities) | 9,404 | 257 |
Interest rate swap agreements | Designated as Hedging Instrument [Member] | ||
Fair Value of Derivative Instruments | ||
Fair value of derivative instruments (assets) | 500 | 0 |
Fair value of derivative instruments (liabilities) | 8,700 | 0 |
Interest rate swap agreements | Derivatives Not Designated as Hedging Instruments | ||
Fair Value of Derivative Instruments | ||
Fair value of derivative instruments (assets) | 5,200 | 2,200 |
Fair value of derivative instruments (liabilities) | $ 700 | $ 300 |
Derivative Instruments (Detai54
Derivative Instruments (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | |||
Fair value of derivative instruments (assets) | $ 5,743 | $ 2,153 | |
Fair value of derivative instruments (liabilities) | 9,404 | 257 | |
Realized loss on derivative instruments, net | 3,438 | 5,496 | $ 9,385 |
Unrealized (gain) loss on derivative instruments, net | (4,405) | 2,240 | 3,798 |
Write-off of deferred financing costs | 141 | 1,170 | 7,468 |
Interest rate swap agreements | Derivatives Not Designated as Hedging Instruments | |||
Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | |||
Fair value of derivative instruments (assets) | 5,200 | 2,200 | |
Fair value of derivative instruments (liabilities) | 700 | 300 | |
Interest rate swap agreements | Designated as Hedging Instrument [Member] | |||
Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | |||
Fair value of derivative instruments (assets) | 500 | 0 | |
Fair value of derivative instruments (liabilities) | 8,700 | 0 | |
Unrealized (gain) loss on derivative instruments, net | (4,405) | 2,240 | 3,798 |
Interest rate swap agreements | Designated as Hedging Instrument [Member] | Other comprehensive income | |||
Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | |||
Change in fair value of derivatives, designated as cash flow hedges | (46,900) | 0 | 0 |
Interest rate swap agreements | Designated as Hedging Instrument [Member] | Interest expense | |||
Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | |||
Realized loss on designated interest rate swap agreements | $ 1,200 | $ 0 | $ 0 |
Net Investment in Finance Lea55
Net Investment in Finance Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | ||
capital leases, future minimum payments excluding residual values | $ 354,338 | $ 90,054 |
Capital Leases, Net Investment in Direct Financing Leases, Executory Costs | 0 | 0 |
Capital Leases, Net Investment in Direct Financing Leases, Unguaranteed Residual Values of Leased Property | 65,793 | 108 |
Components of the net investment in finance leases | ||
Allowance on gross finance lease receivables | (527) | (526) |
Gross finance lease receivables, net of allowance | 419,604 | 89,636 |
Unearned income (2) | (72,794) | (22,980) |
Net investment in finance leases (3) | 346,810 | 66,656 |
Capital Leases, Net Investment in Direct Financing Leases, Initial Direct Costs | $ 0 | $ 0 |
CMA CGM [Member] [Domain] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 43.00% | |
HapagLloyd [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 23.00% | |
Container Investment Limited [Member] [Domain] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 7.00% | 40.00% |
Tristar Container Services [Member] [Domain] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 3.00% | 15.00% |
Net Investment in Finance Lea56
Net Investment in Finance Leases (Details 2) $ in Thousands | Dec. 31, 2016USD ($) |
Leases, Capital [Abstract] | |
Capital Leases, Future Minimum Payments Receivable, Next Twelve Months | $ 82,016 |
Capital Leases, Future Minimum Payments, Receivable in Two Years | 74,524 |
Capital Leases, Future Minimum Payments, Receivable in Three Years | 69,137 |
Capital Leases, Future Minimum Payments, Receivable in Four Years | 79,106 |
Capital Leases, Future Minimum Payments, Receivable in Five Years | 45,189 |
Capital Leases, Future Minimum Payments, Receivable Due Thereafter | 70,159 |
Future minimum lease payment receivable (1) | $ 420,131 |
Net Investment in Finance Lea57
Net Investment in Finance Leases (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in valuation and qualifying accounts | |||
Beginning Balance | $ 526 | $ 526 | |
Other | 0 | ||
Ending Balance | 526 | ||
Finance Lease - Allowance for doubtful accounts | |||
Changes in valuation and qualifying accounts | |||
Beginning Balance | $ 526 | 526 | |
Additions/ (Reversals) | 1 | 0 | 0 |
Other | 1 | 0 | |
Ending Balance | $ 527 | $ 526 | $ 526 |
CMA CGM [Member] [Domain] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Concentration Risk, Percentage | 43.00% | ||
HapagLloyd [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Concentration Risk, Percentage | 23.00% | ||
Container Investment Limited [Member] [Domain] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Concentration Risk, Percentage | 7.00% | 40.00% | |
Tristar Container Services [Member] [Domain] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Concentration Risk, Percentage | 3.00% | 15.00% |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - USD ($) | Sep. 07, 2016 | Jul. 12, 2016 | Jul. 08, 2016 | Dec. 31, 2015 | Nov. 09, 2015 | May 23, 2011 | Jan. 31, 2016 | Nov. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Stock based compensation plans | ||||||||||||
Share-based compensation expense | $ 400,000 | $ 400,000 | $ 2,300,000 | $ 11,500,000 | $ 18,100,000 | |||||||
Exercisable options outstanding | $ 0 | $ 0 | 0 | $ 0 | $ 300,000 | |||||||
Restricted stock vested in period | 36,772 | |||||||||||
Compensation costs | 500,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 500,000 | |||||||||||
Number of Shares Tendered by Plan Participants in Connection with Option Exercises | 14,290 | |||||||||||
2016 Triton Plan [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Total unrecognized compensation cost | $ 6,200,000 | $ 6,200,000 | ||||||||||
Period which unrecognized compensation is expected to be recognized | 2 years 8 months | |||||||||||
TCIL [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Share exchange ratio | 80.00% | |||||||||||
Common Class A [Member] | Option Plan [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Granted during this period (in shares) | 8,051,937 | 0 | ||||||||||
Options exchanged for common shares (in shares) | 517,000 | 692,126 | ||||||||||
Options exchanged for common shares, price (in dollars per share) | $ 13.68 | $ 18.14 | ||||||||||
Fair value of common stock exchanged for options | $ 7,100,000 | $ 12,600,000 | ||||||||||
Options exercised (in shares) | 232,000 | 297,000 | ||||||||||
Common Stock [Member] | TAL [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Vesting period | 2 years | |||||||||||
Market-based Options [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Granted during this period (in shares) | 0 | 0 | ||||||||||
Market-based Options [Member] | Option Plan [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Granted during this period (in shares) | 0 | |||||||||||
Market-based Options [Member] | Common Class A [Member] | Option Plan [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Granted during this period (in shares) | 5,370,640 | |||||||||||
Service-based Options [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Granted during this period (in shares) | 0 | 0 | 0 | |||||||||
Fair value of vested options | $ 6,200,000 | $ 7,400,000 | ||||||||||
Service-based Options [Member] | Option Plan [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Granted during this period (in shares) | 0 | 0 | 0 | |||||||||
Service-based Options [Member] | Common Class A [Member] | Option Plan [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Granted during this period (in shares) | 2,681,297 | |||||||||||
Restricted stock | Option Plan [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Total unrecognized compensation cost | $ 1,100,000 | $ 1,100,000 | ||||||||||
Vesting period remaining | 2 years | |||||||||||
Restricted stock | Non-employee Director Plan [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Restricted stock vested in period | 26,058 | |||||||||||
Restricted stock | Common Class A [Member] | Option Plan [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Restricted shares granted (in shares) | 114,000 | |||||||||||
Restricted stock | Common Class A [Member] | TAL [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Total unrecognized compensation cost | $ 1,300,000 | |||||||||||
Restricted shares granted (in shares) | 140,000 | |||||||||||
Director [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Share-based compensation expense | $ 300,000 | $ 500,000 | $ 500,000 | |||||||||
Director [Member] | Restricted stock | Common Stock [Member] | 2016 Triton Plan [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Restricted shares granted (in shares) | 47,000 | |||||||||||
Employees, Non-Directors [Member] | Restricted stock | Common Stock [Member] | 2016 Triton Plan [Member] | ||||||||||||
Stock based compensation plans | ||||||||||||
Options exchanged for common shares, price (in dollars per share) | $ 14.55 | |||||||||||
Restricted shares granted (in shares) | 418,000 | |||||||||||
Vesting period | 3 years |
Capital Stock Assumptions of Ma
Capital Stock Assumptions of Market-based Options (Details) - Option Plan [Member] - Service-based Options [Member] | Dec. 31, 2015 | Nov. 09, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term of market-based options | 5 years 6 months 22 days | 5 years 6 months 23 days |
Expected common share price volatility | 35.00% | 35.00% |
Expected dividends | 0.00% | 0.00% |
Expected forfeitures | 0.00% | 0.00% |
Risk-free interest rates (10-year Treasury bonds) | 2.00% | 2.00% |
Capital Stock Options Activity
Capital Stock Options Activity (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Market-based Options [Member] | ||||
Number of Class A Common Shares Underlying Options | ||||
Beginning balance | 0 | 5,326,613 | 5,326,613 | |
Granted during this period (in shares) | 0 | 0 | ||
Exercised during this period (in shares) | 0 | 0 | ||
Forfeited during this period (in shares) | 0 | |||
Settled/cancelled during this period (in shares) | (5,326,613) | |||
Ending balance | 0 | 5,326,613 | ||
Weighted-Average Exercise Price | ||||
Outstanding balance | $ 0 | $ 19.66 | $ 19.66 | |
Granted during this period (in dollars per share) | 0 | 0 | ||
Exercised during this period (in dollars per share) | 0 | 0 | ||
Forfeited during this period (in dollars per share) | $ 0 | |||
Settled/cancelled during this period (in dollars per share) | $ (19.66) | |||
Outstanding balance of Class A common shares underlying exercisable options (in shares) | 0 | 0 | 0 | |
Exercisable weighted-average price (in dollars per share) | $ 0 | $ 0 | $ 0 | |
Service-based Options [Member] | ||||
Number of Class A Common Shares Underlying Options | ||||
Beginning balance | 2,643,674 | 2,646,812 | 2,659,363 | |
Granted during this period (in shares) | 0 | 0 | 0 | |
Exercised during this period (in shares) | 0 | 0 | (12,551) | |
Forfeited during this period (in shares) | (3,138) | 0 | ||
Settled/cancelled during this period (in shares) | (2,643,674) | |||
Ending balance | 0 | 2,643,674 | 2,646,812 | |
Weighted-Average Exercise Price | ||||
Outstanding balance | $ 0 | $ 19.66 | $ 19.66 | $ 19.66 |
Granted during this period (in dollars per share) | 0 | 0 | 0 | |
Exercised during this period (in dollars per share) | 0 | 0 | (19.42) | |
Forfeited during this period (in dollars per share) | $ (19.42) | $ 0 | ||
Settled/cancelled during this period (in dollars per share) | $ (19.66) | |||
Outstanding balance of Class A common shares underlying exercisable options (in shares) | 0 | 2,102,375 | 1,573,640 | 1,051,181 |
Exercisable weighted-average price (in dollars per share) | $ 0 | $ 19.54 | $ 19.50 | $ 19.42 |
Number of Class A common shares underlying exercisable options - settled / cancelled (in shares) | (2,102,375) | |||
Exercisable weighted-average price - settled / cancelled (in dollars per share) | $ (19.54) |
Capital Stock Restricted Stock
Capital Stock Restricted Stock Activity (Details) - $ / shares | Sep. 07, 2016 | Jul. 12, 2016 | Dec. 31, 2016 |
Number of Shares Outstanding | |||
Granted (in shares) | 418,022 | ||
Vested (in shares) | 36,772 | ||
Nonvested ending balance (in shares) | 635,192 | ||
Weighted Average Grant Date Fair Value | |||
Weighted Average Grant Date Fair Value - Outstanding (in dollars per share) | $ 13.31 | ||
Weighted Average Grant Date Fair Value - Granted (in dollars per share) | $ 14.55 | ||
Weighted Average Grant Date Fair Value - Vested (in dollars per share) | $ 10.91 | ||
TCIL [Member] | |||
Number of Shares Outstanding | |||
Converted restricted stock beginning balance (in shares) | 113,942 | ||
Nonvested ending balance (in shares) | 113,942 | ||
Weighted Average Grant Date Fair Value | |||
Weighted Average Grant Date Fair Value - Outstanding (in dollars per share) | $ 13.68 | ||
TAL [Member] | |||
Number of Shares Outstanding | |||
Converted restricted stock beginning balance (in shares) | 140,000 | ||
Nonvested ending balance (in shares) | 140,000 | ||
Weighted Average Grant Date Fair Value | |||
Weighted Average Grant Date Fair Value - Outstanding (in dollars per share) | $ 10.89 |
Capital Stock AOCI (Details)
Capital Stock AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||
Beginning balance | $ (3,666) | $ (3,666) | |||||||||
Change in fair value of derivative instruments designated as cash flow hedges | 30,405 | $ 0 | $ 0 | ||||||||
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges | 777 | 0 | 0 | ||||||||
Foreign currency translation adjustment | (758) | (408) | (659) | ||||||||
Other comprehensive income (loss) | 24,639 | 127,261 | 170,645 | ||||||||
Ending balance | $ 26,758 | $ (3,666) | 26,758 | (3,666) | |||||||
Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) | |||||||||||
Amounts reclassified from Accumulated other comprehensive (loss) before income tax | (5,785) | 127,669 | 171,304 | ||||||||
Income tax (benefit) | (48) | 4,048 | 6,232 | ||||||||
Amounts reclassified from Accumulated other comprehensive (loss) | 22,778 | $ (51,211) | $ 6,174 | 8,742 | 12,820 | $ 21,158 | $ 36,241 | $ 40,870 | (13,517) | 111,089 | 149,467 |
Cash Flow Hedges | |||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||
Beginning balance | 0 | 0 | |||||||||
Change in fair value of derivative instruments designated as cash flow hedges | 30,405 | ||||||||||
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges | 777 | ||||||||||
Foreign currency translation adjustment | 0 | ||||||||||
Other comprehensive income (loss) | 31,182 | ||||||||||
Ending balance | 31,182 | 0 | 31,182 | 0 | |||||||
Foreign Currency Translation | |||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||
Beginning balance | (3,666) | (3,258) | (3,666) | (3,258) | |||||||
Change in fair value of derivative instruments designated as cash flow hedges | 0 | ||||||||||
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges | 0 | ||||||||||
Foreign currency translation adjustment | (758) | (408) | |||||||||
Other comprehensive income (loss) | (758) | (408) | |||||||||
Ending balance | (4,424) | (3,666) | (4,424) | (3,666) | (3,258) | ||||||
Accumulated Other Comprehensive (Loss) Income | |||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||
Beginning balance | $ (3,666) | $ (3,258) | (3,666) | (3,258) | |||||||
Change in fair value of derivative instruments designated as cash flow hedges | 30,405 | ||||||||||
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges | 777 | ||||||||||
Foreign currency translation adjustment | (758) | (408) | |||||||||
Other comprehensive income (loss) | 30,424 | (408) | |||||||||
Ending balance | $ 26,758 | $ (3,666) | 26,758 | (3,666) | $ (3,258) | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges | |||||||||||
Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) | |||||||||||
Amounts reclassified from Accumulated other comprehensive (loss) before income tax | 1,200 | 0 | |||||||||
Income tax (benefit) | (423) | 0 | |||||||||
Amounts reclassified from Accumulated other comprehensive (loss) | $ 777 | $ 0 |
Segment and Geographic Inform63
Segment and Geographic Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)industrysegment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jul. 12, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||||
Operating and Capital Leases Income Statement Lease Revenue | $ 259,547 | $ 247,789 | $ 158,333 | $ 163,025 | $ 173,000 | $ 175,719 | $ 178,989 | $ 180,131 | $ 828,694 | $ 707,839 | $ 707,215 | |
Number of Industries in which Business Activities Conducted | industry | 1 | |||||||||||
Number of Reportable Segments | segment | 2 | |||||||||||
Gross Profit | 386 | 232 | 0 | 0 | 0 | 0 | 0 | 0 | $ 618 | 0 | 0 | |
Equipment trading expenses | 15,800 | 0 | 0 | |||||||||
Net (gain) on sale of leasing equipment | 4,261 | $ 12,319 | $ 1,930 | $ 1,837 | 1,058 | $ 3,254 | $ (1,077) | $ (5,248) | 20,347 | (2,013) | (31,616) | |
Depreciation and amortization expense | 392,592 | 300,470 | 258,489 | |||||||||
Interest and debt expense | 184,014 | 140,644 | 137,370 | |||||||||
Realized loss on derivative instruments, net | 3,438 | 5,496 | 9,385 | |||||||||
Income before income taxes | (10,097) | 135,127 | 188,802 | |||||||||
Equipment held for sale | 99,863 | 0 | 99,863 | 0 | 0 | |||||||
Goodwill at the end of the period | 236,665 | 0 | 236,665 | 0 | 0 | $ 236,665 | ||||||
Total assets at the end of the period | 8,713,571 | 4,658,997 | 8,713,571 | 4,658,997 | 4,863,259 | |||||||
Purchases of leasing equipment and investments in finance leases | 629,332 | 398,799 | 809,446 | |||||||||
Unrealized (gain) loss on derivative instruments, net | (4,405) | 2,240 | 3,798 | |||||||||
Write-off of deferred financing costs | 141 | 1,170 | 7,468 | |||||||||
Costs and Expenses | 632,686 | 428,374 | 403,963 | |||||||||
Equipment leasing | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating and Capital Leases Income Statement Lease Revenue | 827,111 | 707,839 | 707,215 | |||||||||
Gross Profit | 0 | 0 | 0 | |||||||||
Net (gain) on sale of leasing equipment | 20,347 | (2,013) | (31,616) | |||||||||
Depreciation and amortization expense | 392,250 | 300,470 | 258,489 | |||||||||
Interest and debt expense | 183,377 | 140,644 | 137,370 | |||||||||
Realized loss on derivative instruments, net | 3,438 | 5,496 | 9,385 | |||||||||
Income before income taxes | (6,302) | 135,127 | 188,802 | |||||||||
Equipment held for sale | 81,804 | 0 | 81,804 | 0 | 0 | |||||||
Goodwill at the end of the period | 220,864 | 0 | 220,864 | 0 | 0 | |||||||
Total assets at the end of the period | 8,660,786 | 4,658,997 | 8,660,786 | 4,658,997 | 4,863,259 | |||||||
Purchases of leasing equipment and investments in finance leases | 629,176 | 398,799 | 809,446 | |||||||||
Equipment trading | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating and Capital Leases Income Statement Lease Revenue | 1,583 | 0 | 0 | |||||||||
Gross Profit | 618 | 0 | 0 | |||||||||
Net (gain) on sale of leasing equipment | 0 | 0 | 0 | |||||||||
Depreciation and amortization expense | 342 | 0 | 0 | |||||||||
Interest and debt expense | 637 | 0 | 0 | |||||||||
Realized loss on derivative instruments, net | 0 | 0 | 0 | |||||||||
Income before income taxes | (3,795) | 0 | 0 | |||||||||
Equipment held for sale | 18,059 | 0 | 18,059 | 0 | 0 | |||||||
Goodwill at the end of the period | 15,801 | 0 | 15,801 | 0 | 0 | |||||||
Total assets at the end of the period | $ 52,785 | $ 0 | 52,785 | 0 | 0 | |||||||
Purchases of leasing equipment and investments in finance leases | 156 | 0 | 0 | |||||||||
Intersegment Elimination [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenues | 0 | 0 | 0 | |||||||||
Costs and Expenses | 0 | 0 | 0 | |||||||||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Unrealized (gain) loss on derivative instruments, net | $ (4,405) | $ 2,240 | $ 3,798 |
Segment and Geographic Inform64
Segment and Geographic Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Equipment trading revenues | $ 16,418 | $ 0 | $ 0 | ||||||||
Operating and Capital Leases Income Statement Lease Revenue | $ 259,547 | $ 247,789 | $ 158,333 | $ 163,025 | $ 173,000 | $ 175,719 | $ 178,989 | $ 180,131 | 828,694 | 707,839 | 707,215 |
Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Equipment trading revenues | 7,410 | ||||||||||
Operating and Capital Leases Income Statement Lease Revenue | 397,500 | 403,910 | 393,642 | ||||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Equipment trading revenues | 4,439 | ||||||||||
Operating and Capital Leases Income Statement Lease Revenue | 334,118 | 226,905 | 218,642 | ||||||||
BERMUDA | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Operating and Capital Leases Income Statement Lease Revenue | 464 | 120 | 45 | ||||||||
Americas [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Equipment trading revenues | 3,082 | ||||||||||
Operating and Capital Leases Income Statement Lease Revenue | 58,945 | 41,566 | 60,090 | ||||||||
Other international | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Equipment trading revenues | 1,487 | ||||||||||
Operating and Capital Leases Income Statement Lease Revenue | $ 37,667 | $ 35,338 | $ 34,796 |
Income Taxes Components of Curr
Income Taxes Components of Current and Deferred (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Foreign [Line Items] | |||
Current foreign tax expense | $ 761 | $ 695 | $ 2,098 |
Deferred foreign tax expense | (809) | 3,353 | 4,134 |
Total foreign income taxes | (48) | 4,048 | 6,232 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (5,833) | 131,717 | 177,536 |
BERMUDA | |||
Foreign [Line Items] | |||
Current foreign tax expense | 0 | 0 | 0 |
Deferred foreign tax expense | 0 | 0 | 0 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 0 | 0 | 0 |
UNITED STATES | |||
Foreign [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (7,451) | 10,985 | 13,310 |
Current Income Tax Expense (Benefit) | (80) | 487 | 1,143 |
Deferred Federal Income Tax Expense (Benefit) | (709) | 3,327 | 4,160 |
Foreign | |||
Foreign [Line Items] | |||
Current foreign tax expense | 841 | 208 | 955 |
Deferred foreign tax expense | (100) | 26 | (26) |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | $ 1,618 | $ 120,732 | $ 164,226 |
Income Taxes Schedule of Effect
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Tax Rate [Line Items] | |||
Income Tax Reconciliation, Permanent Differences and Other Adjustments | (1.58%) | 0.05% | (0.16%) |
Income Tax Reconciliation, Discrete Items | (24.97%) | (0.22%) | (0.02%) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 0.00% | 0.00% | 0.39% |
Effective income tax rate | 0.82% | 3.07% | 3.51% |
BERMUDA | |||
Effective Tax Rate [Line Items] | |||
Foreign income taxed at other than the statutory rate | (0.00%) | (0.00%) | (0.00%) |
UNITED STATES | |||
Effective Tax Rate [Line Items] | |||
Effective income tax rate | 41.68% | 3.01% | 2.72% |
Uncertain tax position [Member] | |||
Effective Tax Rate [Line Items] | |||
Effective income tax rate | (10.16%) | 0.00% | 0.00% |
Foreign Tax Authority [Member] | |||
Effective Tax Rate [Line Items] | |||
Foreign income taxed at other than the statutory rate | (4.15%) | 0.23% | 0.58% |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Derivative Instruments | $ 5,514 | $ 0 |
Deferred income tax assets: | ||
Net operating loss carryforwards | 273,055 | 623 |
Passive activity loss carryforwards | 12 | 135 |
Allowance for losses | 4,250 | 106 |
Deferred income | 35 | 60 |
Accrued liabilities and other payables | 2,233 | 2,354 |
Total gross deferred tax assets | 285,099 | 3,278 |
Less: Valuation allowance | (286) | (525) |
Net deferred tax assets | 284,813 | 2,753 |
Deferred income tax liabilities: | ||
Accelerated depreciation | 516,472 | 21,448 |
Derivative instruments | 287 | 30 |
Deferred income | 71,359 | 0 |
Deferred partnership income (loss) (TCI) | 1,765 | 1,845 |
Other | 9,607 | 0 |
Total gross deferred tax liability | 602,129 | 23,323 |
Deferred Tax Assets, Net | 317,316 | 20,570 |
Deferred Tax Liabilities, Goodwill and Intangible Assets | $ 2,639 | $ 0 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | ||
Income tax valuation allowance | $ 286 | $ 525 |
Unremitted earnings | 78,000 | |
Taxes withhelld on unremitted earnings | 23,000 | |
Unrecognized tax benefits with no impact on after-tax income | 6,100 | |
Decrease in unrecognized tax benefits that is reasonably possible in the next twelve months | 900 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 700,000 | |
United States | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | $ 794,200 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Unrecognized Tax Benefits [Roll Forward] | ||
Beginning balance at January 1 | $ 7,345 | $ 7,395 |
Increase related to current year’s tax position | 1,233 | 1,260 |
Lapse of statute of limitations | (791) | (678) |
Foreign exchange adjustment | (10) | (632) |
Ending balance at December 31 | $ 7,777 | $ 7,345 |
Income Taxes Interest and Penal
Income Taxes Interest and Penalty Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Interest expense (benefit) | $ 121 | $ 15 | $ 21 |
Penalty expense | $ (29) | $ (98) | $ 68 |
Income Taxes Components of Inco
Income Taxes Components of Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | |||
Corporate income taxes payable | $ 32 | $ 194 | |
Unrecognized tax benefits | 7,777 | 7,345 | $ 7,395 |
Interest accrued | 680 | 559 | |
Penalties | 625 | 654 | |
Income taxes payable | 9,114 | 8,752 | |
Other taxes payable | 456 | 3,985 | |
Total income taxes and other taxes payable | $ 9,570 | $ 12,737 |
Savings Plan (Details)
Savings Plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Maximum contribution match | $ 6,000 | |
Defined Contribution Plan, Cost Recognized | $ 700,000 | $ 600,000 |
Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | |
Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 120.00% |
Rental Income under Operating73
Rental Income under Operating Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Leases, Operating [Abstract] | |
2,017 | $ 645,526 |
2,018 | 498,325 |
2,019 | 378,722 |
2,020 | 274,852 |
2,021 | 176,970 |
2022 and thereafter | 195,557 |
Total | $ 2,169,952 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 2,623 |
Operating Leases, Future Minimum Payments, Due in Two Years | 3,332 |
Operating Leases, Future Minimum Payments, Due in Three Years | 999 |
Operating Leases, Future Minimum Payments, Due in Four Years | 206 |
Operating Leases, Future Minimum Payments, Due in Five Years and Thereafter | 52 |
Operating Leases, Future Minimum Payments Due | 7,212 |
Guarantee obligations | |
Operating Leases, Rent Expense | $ 2,300 |
Commitments and Contingencies75
Commitments and Contingencies (Details 3) $ in Millions | Dec. 31, 2016USD ($) |
Other Commitments [Line Items] | |
Purchase commitment payable in 2016 | $ 261 |
Selected Quarterly Financial 76
Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Selected Quarterly Financial Data [Line Items] | |||||||||||
Operating and Capital Leases Income Statement Lease Revenue | $ 259,547 | $ 247,789 | $ 158,333 | $ 163,025 | $ 173,000 | $ 175,719 | $ 178,989 | $ 180,131 | $ 828,694 | $ 707,839 | $ 707,215 |
Gross Profit | 386 | 232 | 0 | 0 | 0 | 0 | 0 | 0 | 618 | 0 | 0 |
Net (loss) gain on sale of leasing equipment | (4,261) | (12,319) | (1,930) | (1,837) | (1,058) | (3,254) | 1,077 | 5,248 | (20,347) | 2,013 | 31,616 |
Unrealized (gain) loss on derivative instruments, net | (4,405) | 2,240 | 3,798 | ||||||||
Net (loss) income | $ 22,778 | $ (51,211) | $ 6,174 | $ 8,742 | $ 12,820 | $ 21,158 | $ 36,241 | $ 40,870 | $ (13,517) | $ 111,089 | $ 149,467 |
Net (loss) income per common share—Basic | $ 0.31 | $ (0.74) | $ 0.15 | $ 0.22 | $ 0.32 | $ 0.53 | $ 0.91 | $ 1.02 | $ (0.24) | $ 2.75 | $ 3.73 |
Net (loss) income per common share—Diluted | $ 0.31 | $ (0.74) | $ 0.15 | $ 0.22 | $ 0.32 | $ 0.52 | $ 0.87 | $ 0.96 | $ (0.24) | $ 2.71 | $ 3.52 |
Foreign Currency Activities (De
Foreign Currency Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Foreign Currency Activites [Abstract] | |||
Foreign Currency Transaction Gain (Loss), before Tax | $ (0.4) | $ (0.4) | $ (0.7) |
Related Party (Details)
Related Party (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
MCS [Member] | ||
Related Party Transaction [Line Items] | ||
Proceeds from (Repayments of) Related Party Debt | $ 183 | $ 208 |
IAS [Member] | ||
Related Party Transaction [Line Items] | ||
Proceeds from (Repayments of) Related Party Debt | 136 | 780 |
Direct Financing Lease Receivable [Member] | MCS [Member] | ||
Related Party Transaction [Line Items] | ||
Proceeds from (Repayments of) Related Party Debt | 1,670 | 1,091 |
Loans and Leases Receivable, Related Parties | 10,636 | 10,207 |
Loans Receivable [Member] | MCS [Member] | ||
Related Party Transaction [Line Items] | ||
Proceeds from (Repayments of) Related Party Debt | 45 | 6 |
Loans and Leases Receivable, Related Parties | $ 126 | $ 210 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 13, 2017 | Mar. 10, 2017 | Mar. 09, 2017 | Mar. 01, 2017 | Feb. 24, 2017 | Jan. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | ||||||||
Debt and Capital Lease Obligations | $ 6,415,664 | $ 3,185,927 | ||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividend approved and declared (in dollars per share) | $ 0.45 | |||||||
Debt and Capital Lease Obligations | $ 35,000 | |||||||
Net Notional Amount of Interest Rate Swaps | $ 400,000 | |||||||
Term Notes [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Borrowing capacity | $ 125,000 | |||||||
Debt and Capital Lease Obligations | $ 19,000 | |||||||
Borrowings on secured debt | $ 185,000 | |||||||
Asset-backed warehouse facility | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt and Capital Lease Obligations | $ 660,000 | $ 0 | ||||||
Asset-backed warehouse facility | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt and Capital Lease Obligations | $ 400,000 | |||||||
two year revolver then three year term [Member] | Asset-backed warehouse facility | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt and Capital Lease Obligations | $ 200,000 |
Schedule II Valuation and Qua80
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 526 | $ 526 | |
Other | 0 | ||
Ending Balance | 526 | ||
Finance Lease - Allowance for doubtful accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 526 | 526 | |
Additions/ (Reversals) | 1 | 0 | 0 |
(Write-offs)/ Reversals | 0 | 0 | |
Other | 1 | 0 | |
Ending Balance | 527 | 526 | 526 |
Accounts Receivable-Allowance for doubtful accounts: | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | 8,297 | 9,576 | 7,367 |
Additions/ (Reversals) | (1,211) | 2,223 | |
(Write-offs)/ Reversals | (26) | ||
Ending Balance | $ 28,082 | $ 8,297 | $ 9,576 |