Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 21, 2018 | Jun. 30, 2017 | |
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, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Common Stock, Shares Outstanding | 80,827,183 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,425.6 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS: | ||
Leasing equipment, net of accumulated depreciation of $2,218,897 and $1,787,505 | $ 8,364,484 | $ 7,370,519 |
Net investment in finance leases, net of allowances of $0 and $527 | 295,891 | 346,810 |
Equipment held for sale | 43,195 | 99,863 |
Revenue earning assets | 8,703,570 | 7,817,192 |
Cash and cash equivalents | 132,031 | 113,198 |
Restricted cash | 94,140 | 50,294 |
Accounts receivable, net of allowances of $3,002 and $28,082 | 199,876 | 173,585 |
Goodwill | 236,665 | 236,665 |
Lease intangibles, net of accumulated amortization of $144,081 and $55,484 | 154,376 | 242,973 |
Insurance receivable | 0 | 17,170 |
Other assets | 49,591 | 56,751 |
Fair value of derivative instruments | 7,376 | 5,743 |
Total assets | 9,577,625 | 8,713,571 |
LIABILITIES AND SHAREHOLDERS' EQUITY: | ||
Equipment purchases payable | 128,133 | 83,567 |
Fair value of derivative instruments | 2,503 | 9,404 |
Accounts payable and other accrued expenses | 109,999 | 143,098 |
Net deferred income tax liability | 215,439 | 317,316 |
Debt, net of unamortized debt costs of $40,636 and $19,999 | 6,911,725 | 6,353,449 |
Total liabilities | 7,367,799 | 6,906,834 |
Shareholders' equity: | ||
Common shares | 807 | 744 |
Additional paid-in capital | 889,168 | 690,418 |
Accumulated earnings | 1,159,367 | 945,313 |
Accumulated other comprehensive income | 26,942 | 26,758 |
Total shareholders' equity | 2,076,284 | 1,663,233 |
Non-controlling interests | 133,542 | 143,504 |
Total equity | 2,209,826 | 1,806,737 |
Total liabilities and shareholders' equity | 9,577,625 | 8,713,571 |
Undesignated Common Stock [Member] | ||
Shareholders' equity: | ||
Common shares | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Leasing Equipment, Accumulated Depreciation and Allowances | $ 2,218,897 | $ 1,787,505 |
Net Investment in Finance Leases, Allowances | 0 | 527 |
Accounts Receivable, Allowances | 3,002 | 28,082 |
Debt, Unamortized Deferred Financing Costs | 40,636 | 19,999 |
Lease intangibles, Accumulated Amortization | 144,081 | 55,484 |
Common Stock, Value, Issued | $ 807 | $ 744 |
Common stock, shares issued (in shares) | 80,687,757 | 74,376,025 |
Designated Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 294,000,000 | 294,000,000 |
Undesignated Common Stock [Member] | ||
Common Stock, Value, Issued | $ 0 | $ 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 6,000,000 | 6,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leasing revenues: | |||
Operating leases | $ 1,141,165 | $ 813,357 | $ 699,810 |
Finance leases | 22,352 | 15,337 | 8,029 |
Total leasing revenues | 1,163,517 | 828,694 | 707,839 |
Equipment trading revenues | 37,419 | 16,418 | 0 |
Equipment trading expenses | (33,235) | (15,800) | 0 |
Trading margin | 4,184 | 618 | 0 |
Net gain (loss) on sale of leasing equipment | 35,812 | (20,347) | 2,013 |
Operating expenses: | |||
Depreciation and amortization | 500,720 | 392,592 | 300,470 |
Direct operating expenses | 62,891 | 84,256 | 54,440 |
Administrative expenses | 87,609 | 65,618 | 53,435 |
Transaction and other costs | 9,272 | 66,916 | 22,185 |
Provision (reversal) for doubtful accounts | 3,347 | 23,304 | (2,156) |
Insurance Recoveries | (6,764) | 0 | 0 |
Total operating expenses | 657,075 | 632,686 | 428,374 |
Operating income | 546,438 | 176,279 | 281,478 |
Other expenses: | |||
Interest and debt expense | 282,347 | 184,014 | 140,644 |
Realized loss on derivative instruments, net | 900 | 3,438 | 5,496 |
Non-designated interest rate swaps | (1,397) | (4,405) | 2,240 |
Write-off of debt costs | 6,973 | 141 | 1,170 |
Other (income) expense, net | (2,637) | (1,076) | 211 |
Total other expenses | 286,186 | 182,112 | 149,761 |
Income (loss) before income taxes | 260,252 | (5,833) | 131,717 |
Income tax (benefit) expense | (93,274) | (48) | 4,048 |
Net income (loss) | 353,526 | (5,785) | 127,669 |
Less: income attributable to non-controlling interest | 8,928 | 7,732 | 16,580 |
Net income (loss) attributable to shareholders | $ 344,598 | $ (13,517) | $ 111,089 |
Net income (loss) per common share—Basic | $ 4.55 | $ (0.24) | $ 2.75 |
Net income (loss) per common share—Diluted | 4.52 | (0.24) | 2.71 |
Cash dividends paid per common share | $ 1.80 | $ 1.35 | $ 0 |
Weighted average number of common shares and non-voting common shares outstanding—Basic | 75,679 | 56,032 | 40,429 |
Dilutive stock options and restricted stock | 509 | 0 | 503 |
Weighted average number of common shares and non-voting common shares outstanding—Diluted | 76,188 | 56,032 | 40,932 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||
Other expenses: | |||
Non-designated interest rate swaps | $ (1,397) | $ (4,405) | $ 2,240 |
Noncontrolling Interest [Member] | |||
Other expenses: | |||
Net income (loss) | $ 16,580 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income (loss) | $ 353,526 | $ (5,785) | $ 127,669 |
Other comprehensive income (loss): | |||
Change in fair value of derivative instruments designated as cash flow hedges (net of income tax effect of $(234) and $16,512) | (407) | 30,405 | 0 |
Accumulated other comprehensive income | 26,942 | 26,758 | |
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges (net of income tax effect of $171 and $423) | 440 | 777 | 0 |
Foreign currency translation adjustment | 151 | (758) | (408) |
Other comprehensive income (loss), net of tax | 184 | 30,424 | (408) |
Comprehensive income | 353,710 | 24,639 | 127,261 |
Less: income attributable to non-controlling interest | 8,928 | 7,732 | 16,580 |
Comprehensive income attributable to shareholders | 344,782 | 16,907 | 110,681 |
Accumulated Other Comprehensive (Loss) Income | |||
Other comprehensive income (loss): | |||
Change in fair value of derivative instruments designated as cash flow hedges (net of income tax effect of $(234) and $16,512) | (407) | 30,405 | |
Accumulated other comprehensive income | 26,942 | 26,758 | $ (3,666) |
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges (net of income tax effect of $171 and $423) | 440 | 777 | |
Foreign currency translation adjustment | 151 | (758) | |
Comprehensive income | $ 184 | $ 30,424 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Change in Fair Value Derivative Instruments Designated as Cash Flow Hedges, Income Tax Effect | $ (234) | $ 16,512 | $ 0 |
Reclassification of Realized Loss on Interest Rate Swap Agreements Designated as Cash Flow Hedges, Income Tax Effect | $ 171 | $ 423 | $ 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 | $ 16,580 | |||||||||||
Beginning balance, shares at Dec. 31, 2014 | 0 | 35,221,615 | 4,800,000 | |||||||||
Beginning balance at Dec. 31, 2014 | 1,297,011 | $ 0 | $ 175,605 | $ 933,313 | $ 0 | $ (3,258) | $ (3,258) | $ 190,851 | $ 440 | $ 60 | ||
Issuance of common shares (in shares) | 406,970.4 | |||||||||||
Issuance of common shares | 0 | (5) | $ 5 | |||||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 12,048 | 12,048 | ||||||||||
Share repurchase to settle shareholder tax obligations | (5,388) | |||||||||||
Liability classified service-based share options | (6,172) | (6,172) | ||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | 111,089 | |||||||||||
Net income | 127,669 | 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 | ||
Business Combination, Contingent Consideration, Asset | 0 | |||||||||||
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 | ||||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 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) Available to Common Stockholders, Basic | (13,517) | |||||||||||
Net income | (5,785) | |||||||||||
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 | ||
Business Combination, Contingent Consideration, Asset | 510,186 | |||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 8,928 | |||||||||||
Issuance of common shares (in shares) | 6,313,694 | 0 | ||||||||||
Issuance of common shares | 193,172 | $ 63 | 193,109 | $ 0 | ||||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 5,641 | 5,641 | ||||||||||
Cumulative adjustment for adoption of ASU 2016-09 | 6,582 | 6,582 | ||||||||||
Share repurchase to settle shareholder tax obligations (in shares) | (1,962) | |||||||||||
Share repurchase to settle shareholder tax obligations | (70) | (70) | ||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | 344,598 | |||||||||||
Net income | 353,526 | |||||||||||
Net Income (Loss) Attributable to Parent | 353,526 | |||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 151 | 151 | ||||||||||
Change in fair value of derivative instruments designated as cash flow hedges | (407) | (407) | 0 | (407) | ||||||||
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges | 440 | 440 | 0 | 440 | ||||||||
Distributions to non-controlling interest | (18,890) | |||||||||||
Common shares dividends declared | (137,056) | |||||||||||
Ending balance, shares at Dec. 31, 2017 | 80,687,757 | 0 | 0 | |||||||||
Ending balance at Dec. 31, 2017 | 2,209,826 | $ 807 | $ 889,168 | $ 1,159,367 | $ 31,215 | $ (4,273) | $ 26,942 | $ 133,542 | $ 0 | $ 0 | ||
Business Combination, Contingent Consideration, Asset | $ 0 |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Change in Fair Value Derivative Instruments Designated as Cash Flow Hedges, Income Tax Effect | $ (234) | $ 16,512 | $ 0 |
Reclassification of Realized Loss on Interest Rate Swap Agreements Designated as Cash Flow Hedges, Income Tax Effect | 171 | 423 | 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, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Cash flows from operating activities: | |||
Net income (loss) | $ 353,526 | $ (5,785) | $ 127,669 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 500,720 | 392,592 | 300,470 |
Debt related amortization | 13,401 | 5,934 | 5,674 |
Amortization of Intangible Assets | 92,053 | 55,484 | 0 |
Net (gain) loss on sale of leasing equipment | (35,812) | 20,347 | (2,013) |
Unrealized (gain) loss on derivative instruments, net | (1,397) | (4,405) | 2,240 |
Write-off of debt costs | 6,973 | 141 | 1,170 |
Deferred income taxes | (94,678) | (809) | 3,353 |
Stock compensation charge | 5,641 | 5,399 | 12,048 |
Changes in operating assets and liabilities: | |||
Net equipment sold for resale activity | 8,821 | 4,031 | 0 |
Accounts receivables | (5,967) | (1,592) | 5,494 |
Accounts payable and other accrued expenses | (42,402) | 10,694 | (2,768) |
Other assets | 3,799 | 2,194 | (2,814) |
Cash received (payments) on termination of derivative instruments | 2,117 | (37) | (1,219) |
Net cash provided by operating activities | 806,795 | 484,188 | 449,304 |
Cash flows from investing activities: | |||
Purchases of leasing equipment and investments in finance leases | (1,562,863) | (629,332) | (398,799) |
Proceeds from sale of equipment, net of selling costs | 190,744 | 145,572 | 171,719 |
Cash collections on finance lease receivables, net of income earned | 60,673 | 38,650 | 14,178 |
Cash Acquired from Acquisition | 0 | 50,349 | 0 |
Other | 55 | (685) | (2,819) |
Net cash (used in) investing activities | (1,311,391) | (395,446) | (215,721) |
Cash flows from financing activities: | |||
Issuance (redemption) of common shares | 192,861 | (7,410) | 0 |
Financing fees paid under debt facilities | (34,494) | (6,554) | (2,972) |
Borrowings under debt facilities | 3,102,825 | 661,971 | 685,500 |
Payments under debt facilities and capital lease obligations | (2,539,711) | (602,152) | (886,979) |
(Increase) decrease in restricted cash | (43,846) | 31,396 | 8,877 |
Payments to Noncontrolling Interests | (18,890) | (24,732) | (46,927) |
Common stock dividends paid | (135,557) | (84,752) | 0 |
Proceeds from (Payments for) Other Financing Activities | 241 | 0 | 0 |
Net cash provided by financing activities | 523,429 | (32,233) | (242,501) |
Net increase (decrease) in cash and cash equivalents | 18,833 | 56,509 | (8,918) |
Unrestricted cash and cash equivalents, end of period | 132,031 | 113,198 | 56,689 |
Unrestricted cash and cash equivalents, beginning of period | 113,198 | 56,689 | 65,607 |
Supplemental disclosures: | |||
Interest paid | 269,601 | 181,559 | 131,749 |
Income taxes (refunded) paid | (288) | 309 | 1,477 |
Supplemental non-cash investing activities: | |||
Equipment purchases payable | 128,133 | 83,567 | 12,128 |
Business Combination, Contingent Consideration, Asset | $ 0 | $ 510,186 | $ 0 |
Business and Basis of Presentat
Business and Basis of Presentation (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
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 Triton International Limited ("Triton" or the "Company"), 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. The Company also sells containers from its existing fleet as well as containers specifically acquired for resale from third parties. The Company's registered office is located in Bermuda. Triton was formed on July 12, 2016, by an all stock merger (the "Merger") of Triton Container International Limited ("TCIL") and TAL International Group, Inc. ("TAL"). Under the terms of the transaction agreement, TCIL and TAL combined under a newly formed company, Triton. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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 TCI’s limited liability company operating agreement (the “Operating Agreement”) and cannot take certain actions that are inconsistent with the purpose of TCI, 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 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 55.6% and 53.4% of TCI’s total members’ capital as of December 31, 2017 and 2016 , 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. Note 2—Summary of Significant Accounting Policies (continued) 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 in the financial statements. Such estimates include, but are not limited to, the Company's estimates in connection with leasing equipment, residual values, depreciable lives, values of assets held for sale and other long lived assets, estimates related to insurance claims, the allowance for doubtful accounts, and acquired goodwill and intangible assets. Actual results could differ from those estimates. 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. 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, CMA CGM, accounted for 19% and 17% of its lease billings during 2017 and 2016 , respectively, and accounted for 23% of its accounts receivable in both periods as of December 31, 2017 and 2016 , respectively. The Company's second largest customer, Mediterranean Shipping Company, accounted for 14% and 15% of its lease billings during 2017 and 2016 , respectively, and accounted for 8% and 7% of its accounts receivable as of December 31, 2017 and 2016 , respectively. Other financial instruments that are exposed to concentration of credit risk are cash and cash equivalents and restricted cash balances. Cash and cash equivalents and restricted cash are held with financial institutions of high quality. Balances may exceed the amount of insurance provided on such deposits. Fair Value Measurements 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. Fair value is estimated by applying inputs which are classified into the following levels of a three-tier hierarchy as follows: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2- inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 - unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. Cash and Cash Equivalents 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. Restricted Cash The Company’s restricted cash relates to amounts held by the Company’s bank pursuant to certain debt arrangements. The restricted cash balances represents cash proceeds collected and are required to be used to pay debt service and other related expenses. 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. 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. Any amounts expected to be recovered for lost revenue are not recorded until received from insurance carriers. The Company experienced a major lessee default in 2016 when Hanjin Shipping Co. ("Hanjin"), a lessee of the Company, filed for court protection and immediately began a liquidation process. At that time, the Company had approximately 87,000 container units on lease to Hanjin with a net book value of $243.3 million . The Company recorded a loss 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 deductibles in credit insurance policies. As of December 31, 2017 , the Company recovered approximately 94% of its containers previously leased to Hanjin. The impact of the Hanjin liquidation was significantly lessened by credit insurance policies in place during 2016 which covered the majority of the recovery costs, the value of the containers that were unrecoverable and a portion of the lost lease revenue. The insurance policies did not cover our pre-default receivables. The Company collected total payments from its insurance providers of $67.0 million in satisfaction of its claims and recorded a gain of $6.8 million to insurance recovery income within operating expenses. The net gain represents insurance proceeds received in excess of recovery costs incurred and the net book value of those units written off as unrecoverable. 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. 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 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 the Company's third party owner investors. Leasing equipment is recorded at cost and depreciated to an estimated residual value on a straight-line basis over the estimated useful lives. Capitalized costs for new container rental equipment 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. Note 2—Summary of Significant Accounting Policies (continued) 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 estimates used in its depreciation policy on a regular basis to determine whether changes have taken place that would suggest that a change in its depreciation estimates for useful lives or the assigned residual values of its equipment is warranted. The Company completed its annual depreciation policy review during the fourth quarter of 2017 and concluded that the estimated residual values for 20-foot refrigerated containers and 40-foot high cube refrigerated containers should be changed to $2,350 and $3,350 , respectively, as compared to the previous ranges of $2,250 to $2,500 for 20-foot refrigerated containers and $3,250 to $3,500 for 40-foot high cube refrigerated containers; and the estimated residual values for 40-foot flat rack containers and 40-foot open top containers should be changed to $1,700 and $2,300 , respectively, as compared to the previous ranges of $1,500 to $3,000 for 40-foot flat rack containers and $2,300 to $2,500 for 40-foot open top containers. In addition, the useful lives for 40-foot flat rack containers and 40-foot open top containers should be changed to 16 years from the previous range of 12 to 14 years . The Company will implement these changes effective January 1, 2018. Had the residual values and useful life estimates noted above been changed on October 1, 2017, the effect would have been immaterial. The estimated useful lives and residual values for each major equipment type for the periods indicated below were as follows: As of December 31, 2017 As of December 31, 2016 Equipment Type Depreciable Life Residual Value Depreciable Life Residual Value Dry containers 20-foot dry container 13 years $ 1,000 13 years $ 1,000 40-foot dry container 13 years $ 1,200 13 years $ 1,200 40-foot high cube dry container 13 years $ 1,400 13 years $ 1,400 Refrigerated containers 20-foot refrigerated container 12 years $2,250 to $2,500 12 years $2,250 to $2,500 40-foot high cube refrigerated container 12 years $3,250 to $3,500 12 years $3,250 to $3,500 Special containers 40-foot flat rack container 12 to 14 years $1,500 to $3,000 12 to 14 years $1,500 to $3,000 40-foot open top container 12 to 14 years $2,300 to $2,500 12 to 14 years $2,300 to $2,500 Tank containers 20 years $ 3,000 20 years $ 3,000 Chassis 20 years $ 1,200 20 years $ 1,200 Depreciation on leasing equipment commences 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 sales market for older containers and the Company's expectations for how long the equipment will remain on-hire to the current lessee. The net book value of the Company's leasing equipment by equipment type as of the dates indicated was (in thousands): December 31, 2017 December 31, 2016 Dry container units $ 5,941,097 $ 4,839,648 Refrigerated container units 1,897,385 2,037,952 Special container units 287,869 265,666 Tank container units 105,821 107,933 Chassis 132,312 119,320 Total $ 8,364,484 $ 7,370,519 Included in the amounts above are units not on lease at December 31, 2017 and 2016 with a total net book value of $509.5 million and $524.9 million , respectively. Amortization on equipment purchased under capital lease obligations is included in depreciation and amortization expense on the consolidated statements of operations. Note 2—Summary of Significant Accounting Policies (continued) Valuation of Leasing Equipment Leasing equipment is reviewed for impairment whenever events or changes in circumstances indicate that its carrying value may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying value to its estimated undiscounted future cash flows expected to be generated by the asset. If the carrying value of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying value of the asset exceeds the fair value of the asset. 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. 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. The Company did not record any impairment charges related to leasing equipment for the year ended December 31, 2017 . For the years ended December 31, 2016 and 2015 , the Company recorded $13.1 million and $7.2 million , respectively, of impairment charges in depreciation and amortization expense related to leasing equipment. 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. 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 expense on equipment held for sale is halted and disposals generally occur within 90 days. Initial write downs of equipment held for sale are recorded as an impairment charge and are included in net gain or loss on sale of leasing equipment. Subsequent increases or decreases to the fair value of those assets 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. 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. The Company acquired the Equipment Trading segment as part of the Merger on July 12, 2016 and had no such reporting segment prior to that date. 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 less than one year. During the years ended December 31, 2017 , 2016 , and 2015 , the Company recorded the following net gains or losses on sale of leasing equipment held for sale on the consolidated statements of operations (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Impairment reversal (loss) on equipment held for sale $ 3 $ (19,399 ) $ — Gain (loss) on sale of equipment-net of selling costs 35,809 (948 ) 2,013 Net gain (loss) on sale of leasing equipment $ 35,812 $ (20,347 ) $ 2,013 Note 2—Summary of Significant Accounting Policies (continued) 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 The Company allocates the purchase price to assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair values of identifiable assets and liabilities is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash flows, discount rates, asset lives and market multiples, among other items. Goodwill Goodwill and intangible assets with indefinite lives are tested for impairment at least annually on October 31st of each fiscal year or more frequently if events occur or circumstances indicate that the fair value of a reporting unit may be below its carrying value. Goodwill has been allocated to the Company’s reporting units. In evaluating goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether further impairment testing is necessary. Among other relevant events and circumstances that affect the fair value of reporting units, the Company considers individual factors such as macroeconomic conditions, changes in its industry and the markets in which the Company operates, as well as its reporting units' historical and expected future financial performance. If, after assessing the totality of events or circumstances, an entity determines it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then the quantitative goodwill impairment test is unnecessary. The quantitative goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit is less than its fair value, no impairment exists. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The Company elected to perform the qualitative assessment for its evaluation of goodwill impairment during the year ended December 31, 2017 and concluded there was no impairment. Since inception through December 31, 2017 , the Company did not have any goodwill impairment. 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 subsequently reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company recorded no impairment charges related to intangible assets during the years ended December 31, 2017 , 2016 , and 2015 . 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. 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 on 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. Debt Costs Debt 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 debt 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 records derivative instruments on its balance sheet at 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) Derivative instruments are designated or non-designated for hedge accounting purposes. The fair value of the derivative instruments is measured at each balance sheet date and is reflected on a gross basis on the consolidated balance sheets. The change in fair value of the derivative instruments which are designated instruments 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 instruments 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. Income Taxes The Company uses the liability method of accounting for income taxes, which requires recognition of deferred tax assets and liabilities based on the 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 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. Transaction gains and losses were immaterial for the years ended December 31, 2017 , 2016 , and 2015 . Share-based Compensation The Company measures and recognizes share based awards granted to employees based on estimated fair values. Time based awards are measured at the grant date and are recognized as compensation expense over the employee's requisite service period, generally the vesting period of the equity award, on a straight-line basis. Performance-based awards are recognized as compensation expense when satisfaction of the performance condition is considered probable. The Company adopted accounting guidance in 2017 that changed the cash flow presentation of excess tax benefits for share-based payment arrangements. Earnings Per Share Basic earnings per share is computed by dividing net income attributable to shareholders by the weighted average number of common shares outstanding for the period. Any potential issuance of common shares, including those that are contingent and do not participate in dividends, are excluded from the weighted average number of common shares outstanding. 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. Note 2—Summary of Significant Accounting Policies (continued) There were no anti-dilutive restricted common shares excluded from the calculations of weighted average shares outstanding for diluted earnings per share for the year ended December 31, 2017 . There were 169,403 , and 65,237 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 , and 2015 , respectively. Recently Adopted Accounting Standards Updates In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. ASU No. 2016- |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Disclosures [Text Block] | Note 3—Fair Value of Financial Instruments 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 uses the following fair value hierarchy when selecting inputs for its valuation techniques, with the highest priority given to Level 1: • Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 - inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and • Level 3 - unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. Fair Value of Debt The Company does not measure debt, net of unamortized debt costs, at fair value in its consolidated balance sheets. The fair value was measured using Level 2 inputs and the carrying value and fair value are summarized in the following table (in thousands): December 31, 2017 December 31, 2016 Liabilities Total Debt(1) - carrying value $ 6,979,877 $ 6,415,664 Total Debt - fair value $ 6,991,537 $ 6,316,229 __________________________________________________________________ (1) Excludes unamortized debt costs of $40.6 million and $20.0 million as of December 31, 2017 and 2016 , respectively, and purchase price debt adjustments of $27.5 million and $42.2 million as of December 31, 2017 and 2016 , respectively. Fair Value of Equipment Held for Sale The Company’s equipment held for sale fair value is measured using Level 2 inputs and is based on recent sales prices and other factors. Equipment held for sale is recorded at the lower of fair value or carrying value and an impairment charge is recorded when the carrying value of the asset exceeds its fair value. The following table summarizes the portion of the Company’s equipment held for sale measured at fair value and the cumulative impairment charges recorded to net gain (loss) on sale of leasing equipment through the periods summarized below (in thousands): December 31, 2017 December 31, 2016 Assets Equipment held for sale - assets at fair value(1) $ 6,104 $ 41,067 Cumulative impairment charges(2) $ (2,242 ) $ (12,063 ) ___________________________________________________________________________ (1) Represents the carrying value of equipment included in equipment held for sale on the consolidated balance sheets that have been written down to their estimated fair value less cost to sell. (2) Represents the cumulative impairment charges recognized on equipment held for sale from the date of designated held for sale status to the indicated period end date. Note 3—Fair Value of Financial Instruments (continued) The Company had immaterial net impairment reversals and net impairment charges during the year ended December 31, 2017 . The Company recognized net impairment reversals and net impairment charges of $19.4 million during the year ended December 31, 2016 . Fair Value of Derivative Instruments 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 and swap rates, basis swap adjustments and credit risk at commonly quoted intervals). The fair value of derivative instruments on its consolidated balance sheets as of December 31, 2017 and December 31, 2016 was as follows (in thousands): Asset Derivatives Liability Derivatives Derivative Instrument December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Interest rate swap contracts, designated $ 3,554 $ 526 $ 2,503 $ 8,728 Interest rate swap contracts, not designated 3,822 5,217 — 676 Total derivatives $ 7,376 $ 5,743 $ 2,503 $ 9,404 Fair Value of Other Assets and Liabilities Cash and cash equivalents, restricted cash, accounts receivable, equipment purchases payable, and accounts payable carrying amounts approximate fair values because of the short-term nature of these instruments. The Company’s other financial and non-financial assets, which include leasing equipment, finance leases, intangible assets and goodwill, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur, or if an annual impairment test is required and the Company determines that these other financial and non-financial assets are impaired after completing an evaluation, these assets would be written down to their fair value. |
Business Combination (Notes)
Business Combination (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combination [Abstract] | |
Business Combination Disclosure [Text Block] | Business Combination The Company completed the Merger on July 12, 2016 and has accounted for the transaction as a business combination under the acquisition method of accounting. TCIL was treated as the acquirer for accounting purposes. In making the determination of the accounting acquirer, the Company considered all pertinent information and facts, 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 making the determination of the accounting acquirer. 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 Triton common shares. TCIL shareholders received approximately 0.80 common shares of Triton, 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, was $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. Note 4—Business Combination (continued) The Company finalized the allocation of the purchase price to the fair value of the TAL assets acquired and liabilities assumed as of December 31, 2016. 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 as follows (in thousands): Net assets acquired: Assets: 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 Other assets 32,084 Intangible Assets: Lease intangibles 298,457 Customer intangibles 4,300 Goodwill 236,665 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 The acquired intangible assets are comprised of a lease intangible for leases acquired with lease rates that were above market and a customer intangible related to the chassis and tank customer lists acquired. The estimated weighted average remaining useful lives of 1.9 years for the lease intangibles and 1.5 years for customer intangibles are consistent with the expected remaining benefit period of these intangible assets. The following table summarizes the intangible assets amortization as of December 31, 2017 (in thousands): Years ending December 31, Above market lease intangibles Customer intangibles (1) Total intangible assets 2018 $ 61,451 $ 1,433 $ 62,884 2019 36,426 758 37,184 2020 22,632 — 22,632 2021 16,652 — 16,652 2022 10,572 — 10,572 2023 and thereafter 6,643 — 6,643 Total $ 154,376 $ 2,191 $ 156,567 ___________________________________________________________________________ (1): Customer intangibles are included in other assets on the consolidated balance sheets. Note 4—Business Combination (continued) The Company incurred transaction and other costs related to the Merger which are included in transaction and other costs on the consolidated statements of operations. Transaction and other costs associated with the Merger for the years ended December 31, 2017 , 2016 and 2015 were as follows (in thousands): December 31, 2017 December 31, 2016 December 31, 2015 Employee compensation costs $ 9,271 $ 40,360 $ 3,520 Professional fees — 14,295 2,841 Legal expenses 10 3,370 3,919 Other (9 ) 2,412 — Total $ 9,272 $ 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. Unaudited Pro Forma Disclosure The unaudited pro forma results of operations gives effect to the transaction as if it had occurred on January 1, 2015. The pro forma results of operations 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. 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 results that might have been achieved had the Merger occurred as of January 1, 2015. The following table summarizes the unaudited pro forma results of operations (in thousands): December 31, 2016 December 31, 2015 Total leasing revenues $ 1,076,753 $ 1,198,148 Net income attributable to shareholders $ 36,015 $ 180,638 |
Restricted Cash (Notes)
Restricted Cash (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 December 31, 2016 Collection accounts $ 23,676 $ 1,178 Trust accounts 14,601 18,906 Other restricted cash accounts 55,863 30,210 Total restricted cash $ 94,140 $ 50,294 Collection accounts The Company maintains certain bank accounts (collectively, the “Collection Accounts”). Cash proceeds collected from leasing and disposition invoices are deposited into the Collection Accounts. Similarly, all expenses related to the operation of the containers are paid from the Collection Accounts. The Company is required to maintain as restricted cash the portion of the balances in the Collections Account that relate to certain units that are financed. Trust accounts Pursuant to certain debt agreements, cash is transferred from the Collection Accounts to separate accounts (the “Trust Accounts”). The Trust Accounts are maintained by the Company on behalf of certain asset-backed noteholders. The cash in the Trust Accounts is used to pay the Company’s debt service and related expenses. 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, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt Debt consisted of the following (amounts in thousands): December 31, 2017 December 31, 2016 Institutional notes $ 2,381,000 $ 2,233,874 Asset-backed securitization term notes 2,378,470 1,384,235 Term loan facilities 1,701,998 1,332,030 Asset-backed warehouse facilities 110,000 660,000 Revolving credit facilities 305,000 708,750 Capital lease obligations 103,409 96,775 Total debt outstanding 6,979,877 6,415,664 Debt costs (40,636 ) (19,999 ) Unamortized fair value debt adjustment (27,516 ) (42,216 ) Debt, net of unamortized debt costs $ 6,911,725 $ 6,353,449 The Company is subject to certain financial covenants under its debt agreements. The agreements remain the obligations of the respective subsidiaries, and all related debt covenants are calculated at the subsidiary level. As of December 31, 2017 and 2016 , the Company was in compliance with all financial covenants in accordance with the terms of its debt agreements. The Company recognized $7.0 million , $0.1 million , and $1.2 million of write-off of debt costs for the years ended December 31, 2017 , 2016 and 2015 , respectively, related to either a termination or modification of a debt arrangement. Note 6—Debt (continued) As of December 31, 2017 , the Company had $4,277.5 million of total debt outstanding on facilities with fixed interest rates. These fixed rate facilities had a contractual weighted average interest rate of 4.28% , are scheduled to mature between 2018 and 2029 , and had a weighted average remaining term of 4.3 years as of December 31, 2017 . As of December 31, 2017 , the Company had $2,702.4 million of total debt outstanding on facilities with interest rates based on floating rate indices (primarily LIBOR). These floating rate facilities had a contractual weighted average interest rate of 3.53% , are scheduled to mature between 2018 and 2024 , and had a weighted average remaining term of 3.0 years as of December 31, 2017 . Including the impact of the Company's interest rate swaps, the contractual weighted average interest rate on its floating rate facilities was 3.64% as of December 31, 2017 . 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, 2017 , the Company had interest rate swaps in place with a net notional amount of $1,740.8 million to fix the floating interest rates on a portion of its floating rate debt obligations, with a weighted average fixed leg interest rate of 1.70% and a weighted average remaining term of 3.3 years . As of December 31, 2017 , the Company had $6,018.3 million of total debt which is at fixed rates or is effectively fixed due to interest rate swap contracts. This accounts for 86% of total debt. These facilities had a contractual weighted average interest rate of 4.35% and a weighted average remaining term of 4.0 years as of December 31, 2017 . Overall, the Company's total debt, including the impact of the swap contracts, had a contractual weighted average interest rate of 4.03% as of December 31, 2017 . Debt Facilities Effective April 1, 2017, both TCIL and TAL obtained the necessary consents from lenders and noteholders to appoint TCIL as manager of all of TAL’s container fleet including those containers in special purpose entities of TAL. Institutional Notes In accordance with the institutional note agreements, interest payments on the Company's institutional notes are due 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. These facilities provide for an advance rate against the net book values of designated eligible equipment generally in the range from 83% to 85% . These institutional notes had a contractual weighted average interest rate of 4.77% as of December 31, 2017 and are scheduled to mature between 2018 and 2029 . On July 13, 2017, the Company completed an offering of $250.0 million of senior secured notes. The Series 2017 A-1 notes have an original principal amount of $105.0 million , an interest rate of 4.35% , and a scheduled maturity of June 30, 2027. The 2017 Series A-2 notes have an original principal amounts of $145.0 million , an interest rate of 4.64% , and a scheduled maturity of June 30, 2029. 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 the Company 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. These facilities provide for an advance rate against the net book values of designated eligible equipment generally in the range from 77% to 87% . The net book values for purposes of calculating eligible equipment is determined according to the related debt agreement and may be different than those calculated per U.S. GAAP. 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. Note 6—Debt (continued) These asset-backed securitization term notes had a contractual weighted average interest rate of 3.62% as of December 31, 2017 and are scheduled to mature between 2018 and 2027. On April 7, 2017, the Company completed an offering of $281.0 million of Class A fixed rate asset-backed notes. The notes have a contractual interest rate of 4.50% and a scheduled maturity of April 20, 2027. On June 15, 2017, the Company completed an offering of $318.9 million of Class A and B fixed rate asset-backed notes. The notes have a contractual weighted average interest rate of 3.57% and a scheduled maturity date of June 21, 2027. On July 20, 2017, the Company terminated and paid down $80.1 million of its principal amount on an asset-backed note. On August 14, 2017, the Company terminated and paid down $257.4 million of its principal amount on an asset-backed note. On August 23, 2017, the Company completed an offering of $450.0 million of Class A and B fixed rate asset-backed notes. The notes have a contractual weighted average interest rate of 3.66% and a scheduled maturity of August 20, 2027. On September 29, 2017, the Company completed an offering of $540.0 million asset-backed notes. The notes have a contractual interest rate of one-month LIBOR plus 2.15% margin with a scheduled maturity date of September 20, 2022. Term Loan Facilities The term loan facilities amortize in monthly or quarterly installments. These facilities provide for an advance rate against the net book values of designated eligible equipment generally in the range from 80% and 83% . These term loan facilities had a contractual weighted average interest rate of 3.50% as of December 31, 2017 , and are scheduled to mature between 2019 and 2022. On January 20, 2017, the Company increased its borrowing on a term loan facility by $50.0 million . This incremental borrowing has a contractual interest rate of one-month LIBOR plus 2.35% margin and a scheduled maturity date of December 19, 2020 which is aligned with the previous loans under the facility. On January 25, 2017, the Company increased its borrowing on a term loan facility by $50.0 million . This incremental borrowing has a contractual interest rate of one-month LIBOR plus 2.50% margin and a scheduled maturity date of June 20, 2022 which is aligned with the previous loans under the facility. On February 24, 2017, the Company secured financing on its property for $18.8 million . This arrangement has a contractual interest rate of three-month LIBOR plus 2.25% margin and a scheduled maturity date of March 1, 2020. On March 13, 2017, the Company increased its borrowings on a term loan facility by $25.0 million . This incremental borrowing has a contractual interest rate of one-month LIBOR plus 2.50% margin and a scheduled maturity date of June 20, 2022 which is aligned with the previous loans under this facility. On June 16, 2017, the Company entered into a term loan facility of $260.0 million . This term loan facility has a contractual interest rate of three-month LIBOR plus 2.25% margin and a scheduled maturity date of June 16, 2022. On June 20, 2017, the Company increased its borrowings on a term loan facility by $50.0 million . This incremental borrowing has a contractual interest rate of three-month LIBOR plus 2.25% margin and a scheduled maturity date of June 20, 2021 which is aligned with the previous loans under this facility. Asset-Backed Warehouse Facilities Under the Company’s Asset-Backed Warehouse (“ABW”) 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 ABW facilities are intended to be bankruptcy remote so that such assets are not available to creditors of the Company 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. Note 6—Debt (continued) The asset-backed warehouse facilities have a maximum borrowing capacity of $600.0 million . Under these facilities, funds are available on a revolving basis until a conversion date, after which if the facilities are not refinanced, the notes will convert to term notes. During the revolving period, the borrowing capacity under the facilities is determined by applying an advance rate against the net book values of designated eligible equipment. The approximate average advance rate for the two facilities is 80% . The net book values for purposes of calculating eligible equipment is determined according to the related debt agreement and may be different than those calculated per U.S. GAAP. The Company is required to maintain restricted cash balances on deposit in designated bank accounts equal to three to five months of interest expense. On March 10, 2017, the Company entered into a floating rate ABS warehouse facility with a borrowing capacity of $400.0 million . The first tranche of $200.0 million , which was subsequently canceled on October 20, 2017, had a one year revolving period followed by an eighteen month term period. The second tranche of $200.0 million has a two year revolving period followed by a three year term period. The facility has a contractual interest rate of three-month LIBOR plus 2.25% margin until March 10, 2019 when it would convert to a term note that has a contractual interest rate of three-month LIBOR plus 3.25% margin with a scheduled maturity date of March 21, 2022. On September 29, 2017, the Company terminated an ABS warehouse facility which had a borrowing capacity of $750.0 million and entered into a new ABS warehouse facility with a borrowing capacity of $400.0 million . This ABS warehouse facility has a contractual interest rate of one-month LIBOR plus 1.85% margin until September 28, 2020 when it would convert to a term note that has a contractual interest rate of 2.85% with a scheduled maturity date of September 20, 2024. Revolving Credit Facilities We have two revolving credit facilities which have a maximum borrowing capacity of $1,075.0 million . These facilities provide for an advance rate against the net book values of designated eligible equipment. The approximate average advance rate for the two facilities is 83% . These revolving credit facilities had a contractual weighted average interest rate of 3.67% as of December 31, 2017 and are scheduled to mature between 2020 and 2022. On June 16, 2017, the Company terminated a $450.0 million revolving credit facility and increased its credit limit on a separate facility from $600.0 million to $1,025.0 million , and extended the term of the facility to June 16, 2022. This revolving credit facility’s interest rate remained at one-month LIBOR plus 2.00% margin. Debt maturities excluding capital lease obligations (amounts in thousands): Years ending December 31, 2018 $ 715,385 2019 1,166,760 2020 998,683 2021 840,283 2022 1,465,378 2023 and thereafter 1,689,979 Total $ 6,876,468 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 3.26% to 4.93% , and mature between 2018 and 2024 . The Company entered into two lease transactions with financial institutions to finance the purchase of new containers for approximately $35 million during the first quarter of 2017. The lease transactions are accounted for as capital leases over the term period and contain early buyout options. Note 6—Debt (continued) At December 31, 2017 , future lease payments under these capital leases were as follows (in thousands): Years ending December 31, 2018 $ 31,954 2019 11,210 2020 10,766 2021 10,766 2022 10,766 2023 and thereafter 42,658 Total future payments 118,120 Less: amount representing interest (14,711 ) Capital lease obligations $ 103,409 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2017 | |
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 are utilized to limit 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. These 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. The Company entered into two interest rate swap agreements during the first quarter of 2017 for a total notional amount of $400 million that involve 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. The Company terminated three interest rate swap agreements during the third quarter of 2017 with a total notional value of $193.1 million and received cash proceeds in the amount of $2.1 million . The Company also terminated two interest rate cap agreements during the third quarter with a total notional value of $69.2 million which did not impact its consolidated financial statements, as the interest rate cap value per the contract exceeded actual interest rates. As of December 31, 2017 , 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 summarized below: Derivatives Net Notional Amount Weighted Average Fixed Leg (Pay) Interest Rate Weighted Average Interest rate swaps $1,740.8 million 1.70% 3.3 years Note 7—Derivative Instruments (continued) The following table represents pre-tax amounts in accumulated other comprehensive (loss) related to interest rate swap agreements expected to be recognized in income over the next twelve months (in thousands): December 31, 2017 Unrealized gain on derivative instruments designated as cash flow hedges $ 6,115 The following table summarizes the impact of derivative instruments on the consolidated statements of operations and the consolidated statements of comprehensive income (loss) (in thousands): Financial statement caption Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Derivative instrument Non-designated interest rate swaps Realized loss on derivative instruments, net $ 900 $ 3,438 $ 5,496 Non-designated interest rate swaps Unrealized (gain) loss on derivative instruments, net (1,397 ) (4,405 ) 2,240 Designated interest rate swaps Other comprehensive loss (income) 641 (46,917 ) — Designated interest rate swaps Interest and debt expense 611 1,200 — |
Net Investment in Finance Lease
Net Investment in Finance Leases | 12 Months Ended |
Dec. 31, 2017 | |
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) $ 283,374 $ 353,811 Estimated residual receivable 64,560 65,793 Gross finance lease receivables 347,934 419,604 Unearned income (2) (52,043 ) (72,794 ) Net investment in finance leases (3) $ 295,891 $ 346,810 _______________________________________________________________________________ (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, 2017 and 2016 . (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, 2017 and 2016 . (3) As of December 31, 2017 and 2016 , approximately 46% and 43% of the Company's net investment in finance leases were with CMA CGM, respectively. As of December 31, 2017 and 2016 , approximately 28% and 23% of the Company's net investment in finance leases were with Hapag Lloyd AG, respectively. Contractual maturities of the Company’s gross finance lease receivables subsequent to December 31, 2017 are as follows (in thousands): Years ending December 31, 2018 $ 76,237 2019 70,776 2020 81,184 2021 46,372 2022 40,861 2023 and thereafter 32,504 Total $ 347,934 Note 8—Net Investment in Finance Leases (continued) The Company evaluates potential losses in its finance lease portfolio by regularly reviewing the specific receivables in the portfolio and analyzing loss experience. The Company maintains allowances, if necessary, for doubtful accounts and estimated losses resulting from the inability of its lessees to make required payments under finance leases. 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 recoverability. The Company currently does not have an allowance on its gross finance lease receivables. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2017 | |
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 TCIL adopted a share-based compensation plan (the “Option Plan”) for the benefit of certain executives of TCIL and its consolidated subsidiaries effective May 23, 2011. TCIL granted 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 in 2011. 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. In accordance with the terms of the agreements, TCIL settled and canceled all vested and unvested market based options 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 their settlement. On July 8, 2016, TCIL settled and canceled 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. There were no market based or service based options granted under the Option Plan during 2017, 2016 or 2015. The Company recognized $2.3 million , and $11.5 million of compensation costs reported as transaction and other costs on the consolidated statements of operations for the years ended December 31, 2016 and 2015, respectively, related to options granted during the years 2011 through 2013 and the settlement and cancellation as described above. There was no compensation costs related to options for the year ended December 31, 2017 . 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, became fully vested and the remaining unamortized compensation costs of $0.4 million was expensed and recorded in transaction and other costs on the consolidated statements of operations. For the years ended December 31, 2016 and 2015, compensation expense of $0.3 million and $0.5 million , respectively, was included in administrative expenses on the consolidated statements of operations. There was no compensation expense related to the TCIL non-employee director equity plan during the year ended December 31, 2017. TCIL Restricted Shares On July 8, 2016, TCIL issued 113,942 restricted shares at a fair value of $13.68 per share. The Company recognized $0.5 million of compensation costs which are included in transaction and other costs on the consolidated statements of operations for the year ended December 31, 2016. These unvested TCIL restricted shares converted to Triton restricted shares upon the Merger and will vest on a straight line basis over the remaining vesting term. Note 9—Share Based Compensation and Other Equity Matters (continued) 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 were included in the purchase price consideration. TAL granted 140,000 restricted shares in January 2016 that were converted to Triton restricted shares upon the Merger and will vest on a straight line basis over the remaining vesting term. 2016 Triton Plan On July 8, 2016, the Company’s 2016 Equity Incentive Plan (“2016 Equity Plan”) became effective. The 2016 Equity Plan provides for the granting of service based and performance based restricted shares to various executives, certain employees and directors. The maximum aggregate number of shares that may be issued under the 2016 Equity Plan is initially 5,000,000 common shares. Any awards issued under the 2016 Equity Plan that are forfeited by the participant, will become available for future grant under the 2016 Equity Plan. On September 7, 2016, the Company approved the grants of 47,075 restricted shares to non-employee directors at a fair value of $14.55 per share that vested immediately. On May 10, 2017, the Company approved the grants of 38,675 restricted shares to directors at a fair value of $28.04 per share that vested immediately. The compensation expense for the years ended December 31, 2017 and 2016 included in administrative expenses on the consolidated statements of operations was $1.1 million and $0.7 million , respectively. There was no compensation expense for the year ended December 31, 2015 related to director share grants under the 2016 Equity Plan. Additional shares may be granted based upon the satisfaction of certain performance criteria. The following table summarizes the Company’s restricted share activity for the years ended December 31, 2017 and 2016 : Number of Shares Outstanding Weighted Average Fair Value Non-vested balance at December 31, 2015 — $ — Shares converted (1) 253,942 14.56 Shares granted 465,097 14.55 Shares vested (83,847 ) 14.55 Non-vested balance at December 31, 2016 635,192 $ 14.55 Shares granted 161,194 24.99 Shares vested(2) (44,372 ) 26.20 Non-vested balance at December 31, 2017 752,014 $ 16.10 (1) Shares converted represent TCIL and TAL equity awards that were converted to Triton equity awards as part of the Merger. (2) Plan participants tendered 1,962 common shares, all of which were subsequently retired by the Company, to satisfy payment. As of December 31, 2017 , the total unrecognized compensation costs related to restricted shares is approximately $7.3 million , which is expected to be recognized over the remaining weighted average vesting period of approximately 1.7 years . Equity Issuance On September 12, 2017, the Company completed a common share offering in which it sold 5,350,000 common shares at a public offering price of $32.75 per share. On September 22, 2017, the Company sold an additional 802,500 common shares at a public offering price of $32.75 per share pursuant to the full exercise of an option granted to the underwriters in connection with the offering. The aggregate net proceeds received by the Company from the offering, including the exercise of the option, amounted to $192.9 million after deducting underwriting discounts and commissions, and before deducting total expenses incurred in connection with the offering of approximately $1.3 million . The net proceeds were used for general corporate purposes, including the purchase of containers. Note 9—Share Based Compensation and Other Equity Matters (continued) Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive (loss) income 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, 2016 $ 31,182 $ (4,424 ) $ 26,758 Change in fair value of derivative instruments designated as cash flow hedges (407 ) — (407 ) Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges 440 — 440 Foreign currency translation adjustment — 151 151 Other comprehensive income 33 151 184 Balance as of December 31, 2017 $ 31,215 $ (4,273 ) $ 26,942 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 The following table summarizes 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, 2017 December 31, 2016 Amounts reclassified from accumulated other comprehensive (loss) before income tax $ 611 $ 1,200 Interest and debt expense Income tax (benefit) (171 ) (423 ) Income tax expense Amounts reclassified from accumulated other comprehensive (loss), net of tax $ 440 $ 777 Net income |
Allocation of Profits (Notes)
Allocation of Profits (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest Disclosure [Text Block] | Non-Controlling Interests The members of TCI have made varying capital contributions with respect to investments in eleven different groups of containers, each referred to as a “Tranche”, under TCIL. 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. In addition, 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. 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. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Industry Segment Information The Company operates its business in one industry, intermodal transportation equipment, and has two operating segments which also represent its reporting segments: • Equipment leasing - the Company owns, leases and ultimately disposes of containers and chassis from its lease fleet. • 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 service offered. The Company 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. Note 11—Segment and Geographic Information (continued) The following tables show segment information for the periods indicated and the consolidated totals reported (in thousands): As of and for the Year Ended December 31, 2017 Equipment Equipment Totals Total leasing revenues $ 1,160,196 $ 3,321 $ 1,163,517 Trading margin — 4,184 4,184 Net gain on sale of leasing equipment 35,812 — 35,812 Depreciation and amortization expense 500,099 621 500,720 Interest and debt expense 280,909 1,438 282,347 Realized loss on derivative instruments, net 900 — 900 Income before income taxes(1) 262,574 3,254 265,828 Equipment held for sale 31,534 11,661 43,195 Goodwill 220,864 15,801 236,665 Total assets 9,534,330 43,295 9,577,625 Purchases of leasing equipment and investments in finance leases(2) 1,562,863 — 1,562,863 As of and for the 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 Loss before income taxes(1) (6,302 ) (3,795 ) (10,097 ) Equipment held for sale 81,804 18,059 99,863 Goodwill 220,864 15,801 236,665 Total assets 8,660,786 52,785 8,713,571 Purchases of leasing equipment and investments in finance leases(2) 629,176 156 629,332 As of and for the Year Ended December 31, 2015 Equipment Equipment Totals Total leasing revenues $ 707,839 $ — $ 707,839 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 — — — Goodwill — — — Total assets 4,658,997 — 4,658,997 Purchases of leasing equipment and investments in finance leases(2) 398,799 — 398,799 _______________________________________________________________________________ (1) Segment income (loss) before income taxes excludes unrealized gains on interest rate swaps of $1.4 million , unrealized gains on interest rate swaps of $4.4 million , and unrealized losses on interest swaps of $2.2 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively, and the write-off of debt costs of $7.0 million , $0.1 million , and $1.2 million for the years ended December 31, 2017 , 2016 , and 2015 , 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. Note 11—Segment and Geographic Information (continued) There are no intercompany revenues or expenses between segments. 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 generates the majority of its leasing revenues from international containers which are deployed by its customers in a wide variety of global trade routes. The majority of the Company's leasing related revenue is denominated in U.S. dollars. The following table summarizes the geographic allocation of equipment leasing revenues for the years ended December 31, 2017 , 2016 , and 2015 based on customers' primary domicile (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Total revenues: Asia $ 491,996 $ 397,500 $ 403,910 Europe 518,598 334,118 226,905 Americas 111,558 58,945 41,566 Bermuda 1,745 464 120 Other International 39,620 37,667 35,338 Total $ 1,163,517 $ 828,694 $ 707,839 Since the majority of the Company's containers are used internationally, where no one container is domiciled in one particular place for a prolonged period of time, all of the Company's long-lived assets are considered to be international. The following table represents the geographic allocation of equipment trading revenues for the years ended December 31, 2017 and 2016 (the Company had no equipment trading revenues in 2015 ) based on the location of the sale (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Total revenues: Asia $ 17,342 $ 7,410 Europe 8,383 4,439 Americas 7,747 3,082 Other International 3,925 1,487 Bermuda 22 — Total $ 37,419 $ 16,418 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes T he Company 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. Effects of the Tax Cuts and Jobs Act U.S. income tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"), was enacted on December 22, 2017. ASC 740, Accounting for Income Taxes, requires companies to recognize the effect of tax law changes in the period of enactment even though the effective date for most provisions is for tax years beginning after December 31, 2017, or in the case of certain other provisions, January 1, 2018. Though certain key aspects of the new law are effective January 1, 2018 and have an immediate accounting effect, other significant provisions are not effective or may not result in accounting effects for calendar year companies until January 1, 2018. The Tax Act reduced the U.S. Corporate income tax rate from 35 percent to 21 percent which resulted in the Company recognizing a one-time income tax benefit of $139.4 million in the fourth quarter of 2017 to re-measure deferred tax assets and liabilities that will reverse at the new 21 percent rate. Given the significance of the Tax Act, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118), which allows registrants to record provisional amounts during a one year “measurement period” similar to that used when accounting for business combinations. However, the measurement period is deemed to have ended earlier when the registrant has obtained, prepared and analyzed the information necessary to finalize its accounting. The Company has recorded amounts for the effects of the change in the tax law pursuant to SAB 118. Other significant provisions that are not yet effective but may impact income taxes in future years include: limitation on the current deductibility of net interest expense in excess of 30 percent of adjusted taxable income, a limitation of net operating losses generated after fiscal year 2017 to 80 percent of taxable income, and an incremental tax (base erosion anti-abuse tax or BEAT) on excessive amounts paid to foreign related parties. If any of these or other provisions impact income taxes in future years, the impact will be recorded in the financial statements in the period incurred, which is consistent with the general principles of measurement and recognition of deferred taxes in accordance with ASC 740, Accounting for Income Taxes. The following table summarizes the Company's income tax (benefit) expense as follows (in thousands): December 31, December 31, 2016 December 31, 2015 Current taxes: Bermuda $ — $ — $ — U.S. 36 (80 ) 487 Foreign 839 841 208 $ 875 $ 761 $ 695 Deferred taxes: Bermuda $ — $ — $ — U.S. (94,079 ) (709 ) 3,327 Foreign (70 ) (100 ) 26 (94,149 ) (809 ) 3,353 Total income tax (benefit) expense $ (93,274 ) $ (48 ) $ 4,048 Note 12—Income Taxes (continued) The following table summarizes the components of income (loss) before income taxes as follows (in thousands): December 31, December 31, 2016 December 31, 2015 Bermuda sources $ (4,011 ) $ — $ — U.S. sources 125,799 (7,451 ) 10,985 Foreign sources 138,464 1,618 120,732 Income (loss) before income taxes $ 260,252 $ (5,833 ) $ 131,717 The following table summarizes the difference between the Bermuda statutory income tax rate and the effective tax rate on the consolidated statements of operations as follows: December 31, December 31, 2016 December 31, 2015 Bermuda tax rate — % — % — % Change in enacted tax rate (53.55 )% — % — % U.S. income taxed at other than the statutory rate 17.10 % 41.68 % 3.01 % Effect of uncertain tax positions 0.21 % (10.16 )% — % Foreign income taxed at other than the statutory rate 0.10 % (4.15 )% 0.23 % Effect of permanent differences 0.04 % (1.58 )% 0.05 % Other discrete items 0.26 % (24.97 )% (0.22 )% Effective income tax rate (35.84 )% 0.82 % 3.07 % The following table summarizes the deferred income tax assets and liabilities as follows (in thousands): December 31, 2017 December 31, 2016 Deferred income tax assets: Net operating loss carryforwards $ 197,089 $ 273,055 Passive activity loss carryforwards 7 12 Allowance for losses 622 4,250 Derivative instruments 1,529 5,514 Deferred income 261 35 Accrued liabilities and other payables 631 2,233 Total gross deferred tax assets 200,139 285,099 Less: Valuation allowance — (286 ) Net deferred tax assets $ 200,139 $ 284,813 Deferred income tax liabilities: Accelerated depreciation $ 382,961 $ 516,472 Goodwill and other intangible amortization 2,141 2,639 Derivative instruments 790 287 Deferred income 27,347 71,359 Deferred partnership income (TCI) 1,134 1,765 Other 1,205 9,607 Total gross deferred tax liability 415,578 602,129 Net deferred income tax liability $ 215,439 $ 317,316 Note 12—Income Taxes (continued) The Company has no valuation allowance for deferred tax assets as of December 31, 2017 and a valuation allowance of $0.3 million as of December 31, 2016 . The net change in our total valuation allowance from December 31, 2016 to December 31, 2017 was related to net operating loss carryforwards that, in the judgment of the Company, are more likely than not to 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. 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 the Company will realize the benefits of these deductible differences at December 31, 2017 . Certain 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 $47 million and $14 million , respectively, at December 31, 2017 . Net operating loss carryforwards for foreign income tax purposes of $926.7 million are available to offset future U.S. taxable income from 2018 through 2037 . The Company files income tax returns in several jurisdictions including the U.S. and certain U.S. states. The following table summarizes unrecognized tax benefit amounts as follows (in thousands): December 31, 2017 December 31, 2016 Beginning balance at January 1 $ 7,777 $ 7,345 Increase related to current year’s tax position 1,315 1,233 Lapse of statute of limitations (898 ) (791 ) Foreign exchange adjustment 56 (10 ) Ending balance at December 31 $ 8,250 $ 7,777 All unrecognized tax benefits as of December 31, 2017 will impact income tax expense when recognized, however, $6.9 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, 2017 will decrease by $1.4 million within the next twelve months due to statute of limitations lapses. This reduction will impact income tax expense when recognized. The 2015, 2016, and 2017 tax years remain subject to examination by major tax jurisdictions. The following table summarizes interest and penalty expense as follows (in thousands): December 31, 2017 December 31, 2016 December 31, 2015 Interest expense (benefit) $ 144 $ 121 $ 15 Penalty expense $ (64 ) $ (29 ) $ (98 ) Note 12—Income Taxes (continued) The following table summarizes the components of income taxes payable included in accounts payable and other accrued expenses on the consolidated balance sheets were as follows (in thousands): December 31, 2017 December 31, 2016 Corporate income taxes payable $ 56 $ 32 Unrecognized tax benefits 8,250 7,777 Interest accrued 824 680 Penalties 561 625 Income taxes payable $ 9,691 $ 9,114 |
Savings Plan (Notes)
Savings Plan (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
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 four years of service. The Company matches employee contributions of 100% up to a maximum of $6,000 of qualified compensation and may, at its discretion, make voluntary contributions. The Company's contributions were $1.0 million , $0.7 million , and $0.6 million for each of the years ended December 31, 2017 , 2016 , and 2015 , respectively. |
Rental Income under Operating L
Rental Income under Operating Leases (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Leases, Operating [Abstract] | |
Operating Leases of Lessor Disclosure [Text Block] | Rental Income Under Operating Leases The following is the minimum future rental income as of December 31, 2017 under non-cancelable operating leases, assuming the minimum contractual lease term (in thousands): Years ending December 31, 2018 $ 838,022 2019 675,678 2020 553,676 2021 437,027 2022 325,915 2023 and thereafter 488,061 Total $ 3,318,379 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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 $2.4 million , $2.3 million , and $1.4 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Note 15—Commitments and Contingencies (continued) Future minimum rental commitments under non-cancelable operating leases having an original term of more than one year as of December 31, 2017 were as follows (in thousands): Years ending December 31, 2018 $ 4,178 2019 2,034 2020 1,164 2021 627 2022 and thereafter 272 Total $ 8,275 Container Equipment Purchase Commitments As of December 31, 2017 , the Company had commitments to purchase equipment in the amount of $276.0 million payable in 2018 . 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, 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. Employment Agreements and Indemnification Agreements The Company has entered into employment arrangements and indemnification agreements with certain executive officers and with certain employees. The agreements specify various employment-related matters, including annual compensation, performance incentive bonuses, and severance benefits in the event of termination with or without cause. Retention Bonus Plan TCIL established a bonus plan in 2011 to award bonuses to certain employees for continued service (the “Retention Bonus Plan”) and in 2015, established an incremental retention bonus plan (the “Plan”) to award bonuses to certain employees for continued service who were not included in the Retention Bonus Plan. In accordance with the terms of the Retention Bonus Plan agreement, specified bonus amounts, plus interest compounded annually, were paid to all participants on the earlier of their termination date or June 2017. TAL established a bonus plan in 2015 to award bonuses to certain TAL employees for continued service (the “TAL Retention Bonus Plan”). In accordance with the terms of the TAL Retention Bonus Plan agreement, the specified bonus amounts were paid to all participants on the earlier of their termination date or July 2017. A roll-forward of the retention bonus liability balance is as follows (in thousands): Total Balance at December 31, 2015 $ 19,128 Liability Acquired 4,082 Accrual 7,384 Payments (5,419 ) Balance at December 31, 2016 $ 25,175 Accrual 2,853 Payments (28,028 ) Balance at December 31, 2017 $ — Note 15—Commitments and Contingencies (continued) Severance Plan TCIL and TAL 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 severance plans would receive a severance award and other benefits based upon their tenure with either TCIL or TAL. 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 Accrual 6,023 Payments (17,064 ) Balance at December 31, 2017 $ 9,677 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 : (In thousands, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2017 Total leasing revenues $ 265,602 $ 281,939 $ 302,120 $ 313,856 Trading margin $ 392 $ 1,328 $ 1,369 $ 1,095 Net gain on sale of leasing equipment $ 5,161 $ 9,639 $ 10,263 $ 10,749 Net income attributable to shareholders $ 34,611 $ 45,671 $ 57,156 $ 207,160 Net income per basic common share $ 0.47 $ 0.62 $ 0.76 $ 2.59 Net income per diluted common share $ 0.47 $ 0.62 $ 0.75 $ 2.57 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 income (loss) per basic common share $ 0.22 $ 0.15 $ (0.74 ) $ 0.31 Net income (loss) per diluted common share $ 0.22 $ 0.15 $ (0.74 ) $ 0.31 |
Related Party (Notes)
Related Party (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions The Company 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. The Company's equity investment in TriStar is included in other assets on the consolidated balance sheet. The following table summarizes payments, direct finance lease, and loan payable balances with TriStar (in thousands): December 31, 2017 December 31, 2016 Payments received from TriStar on direct finance leases $ 1,897 $ 1,670 Payments received from TriStar on loan payable $ 128 $ 45 Direct finance lease balance $ 10,648 $ 10,636 Loan payable balance $ — $ 126 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events 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 28, 2018 to shareholders of record at the close of business on March 12, 2018 . |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II TRITON INTERNATIONAL LIMITED Valuation and Qualifying Accounts Years ended December 31, 2017 , 2016 , and 2015 (In thousands) Finance Lease-Allowance for doubtful accounts: For the year ended December 31, 2017 For the year ended December 31, 2016 For the year ended December 31, 2015 Beginning Balance $ 527 $ 526 $ 526 Additions / (Reversals) (527 ) 1 — (Write-offs) / Reversals — — — Ending Balance $ — $ 527 $ 526 Accounts Receivable-Allowance for doubtful accounts: Beginning Balance $ 28,082 $ 8,297 $ 9,576 Additions / (Reversals) 581 19,811 (1,211 ) (Write-offs) / Reversals (25,661 ) (26 ) (68 ) Ending Balance $ 3,002 $ 28,082 $ 8,297 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
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 in the financial statements. Such estimates include, but are not limited to, the Company's estimates in connection with leasing equipment, residual values, depreciable lives, values of assets held for sale and other long lived assets, estimates related to insurance claims, the allowance for doubtful accounts, and acquired goodwill and intangible assets. Actual results could differ from those estimates. |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | The following table summarizes the portion of the Company’s equipment held for sale measured at fair value and the cumulative impairment charges recorded to net gain (loss) on sale of leasing equipment through the periods summarized below (in thousands): December 31, 2017 December 31, 2016 Assets Equipment held for sale - assets at fair value(1) $ 6,104 $ 41,067 Cumulative impairment charges(2) $ (2,242 ) $ (12,063 ) ___________________________________________________________________________ (1) Represents the carrying value of equipment included in equipment held for sale on the consolidated balance sheets that have been written down to their estimated fair value less cost to sell. (2) Represents the cumulative impairment charges recognized on equipment held for sale from the date of designated held for sale status to the indicated period end date. |
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 TCI’s limited liability company operating agreement (the “Operating Agreement”) and cannot take certain actions that are inconsistent with the purpose of TCI, 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 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 55.6% and 53.4% of TCI’s total members’ capital as of December 31, 2017 and 2016 , 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. Note 2—Summary of Significant Accounting Policies (continued) |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents 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. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash The Company’s restricted cash relates to amounts held by the Company’s bank pursuant to certain debt arrangements. The restricted cash balances represents cash proceeds collected and are required to be used to pay debt service and other related expenses. |
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. 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. Any amounts expected to be recovered for lost revenue are not recorded until received from insurance carriers. The Company experienced a major lessee default in 2016 when Hanjin Shipping Co. ("Hanjin"), a lessee of the Company, filed for court protection and immediately began a liquidation process. At that time, the Company had approximately 87,000 container units on lease to Hanjin with a net book value of $243.3 million . The Company recorded a loss 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 deductibles in credit insurance policies. As of December 31, 2017 , the Company recovered approximately 94% of its containers previously leased to Hanjin. The impact of the Hanjin liquidation was significantly lessened by credit insurance policies in place during 2016 which covered the majority of the recovery costs, the value of the containers that were unrecoverable and a portion of the lost lease revenue. The insurance policies did not cover our pre-default receivables. The Company collected total payments from its insurance providers of $67.0 million in satisfaction of its claims and recorded a gain of $6.8 million to insurance recovery income within operating expenses. The net gain represents insurance proceeds received in excess of recovery costs incurred and the net book value of those units written off as unrecoverable. |
Concentration of Credit Risk | |
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. 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 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 the Company's third party owner investors. Leasing equipment is recorded at cost and depreciated to an estimated residual value on a straight-line basis over the estimated useful lives. Capitalized costs for new container rental equipment 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. Note 2—Summary of Significant Accounting Policies (continued) 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 estimates used in its depreciation policy on a regular basis to determine whether changes have taken place that would suggest that a change in its depreciation estimates for useful lives or the assigned residual values of its equipment is warranted. The Company completed its annual depreciation policy review during the fourth quarter of 2017 and concluded that the estimated residual values for 20-foot refrigerated containers and 40-foot high cube refrigerated containers should be changed to $2,350 and $3,350 , respectively, as compared to the previous ranges of $2,250 to $2,500 for 20-foot refrigerated containers and $3,250 to $3,500 for 40-foot high cube refrigerated containers; and the estimated residual values for 40-foot flat rack containers and 40-foot open top containers should be changed to $1,700 and $2,300 , respectively, as compared to the previous ranges of $1,500 to $3,000 for 40-foot flat rack containers and $2,300 to $2,500 for 40-foot open top containers. In addition, the useful lives for 40-foot flat rack containers and 40-foot open top containers should be changed to 16 years from the previous range of 12 to 14 years . The Company will implement these changes effective January 1, 2018. Had the residual values and useful life estimates noted above been changed on October 1, 2017, the effect would have been immaterial. The estimated useful lives and residual values for each major equipment type for the periods indicated below were as follows: As of December 31, 2017 As of December 31, 2016 Equipment Type Depreciable Life Residual Value Depreciable Life Residual Value Dry containers 20-foot dry container 13 years $ 1,000 13 years $ 1,000 40-foot dry container 13 years $ 1,200 13 years $ 1,200 40-foot high cube dry container 13 years $ 1,400 13 years $ 1,400 Refrigerated containers 20-foot refrigerated container 12 years $2,250 to $2,500 12 years $2,250 to $2,500 40-foot high cube refrigerated container 12 years $3,250 to $3,500 12 years $3,250 to $3,500 Special containers 40-foot flat rack container 12 to 14 years $1,500 to $3,000 12 to 14 years $1,500 to $3,000 40-foot open top container 12 to 14 years $2,300 to $2,500 12 to 14 years $2,300 to $2,500 Tank containers 20 years $ 3,000 20 years $ 3,000 Chassis 20 years $ 1,200 20 years $ 1,200 Depreciation on leasing equipment commences 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 sales market for older containers and the Company's expectations for how long the equipment will remain on-hire to the current lessee. The net book value of the Company's leasing equipment by equipment type as of the dates indicated was (in thousands): December 31, 2017 December 31, 2016 Dry container units $ 5,941,097 $ 4,839,648 Refrigerated container units 1,897,385 2,037,952 Special container units 287,869 265,666 Tank container units 105,821 107,933 Chassis 132,312 119,320 Total $ 8,364,484 $ 7,370,519 Included in the amounts above are units not on lease at December 31, 2017 and 2016 with a total net book value of $509.5 million and $524.9 million , respectively. Amortization on equipment purchased under capital lease obligations is included in depreciation and amortization expense on the consolidated statements of operations. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Valuation of Leasing Equipment Leasing equipment is reviewed for impairment whenever events or changes in circumstances indicate that its carrying value may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying value to its estimated undiscounted future cash flows expected to be generated by the asset. If the carrying value of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying value of the asset exceeds the fair value of the asset. 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. 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. The Company did not record any impairment charges related to leasing equipment for the year ended December 31, 2017 . For the years ended December 31, 2016 and 2015 , the Company recorded $13.1 million and $7.2 million , respectively, of impairment charges in depreciation and amortization expense related to leasing equipment. |
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. 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 expense on equipment held for sale is halted and disposals generally occur within 90 days. Initial write downs of equipment held for sale are recorded as an impairment charge and are included in net gain or loss on sale of leasing equipment. Subsequent increases or decreases to the fair value of those assets 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. 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. The Company acquired the Equipment Trading segment as part of the Merger on July 12, 2016 and had no such reporting segment prior to that date. 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 less than one year. During the years ended December 31, 2017 , 2016 , and 2015 , the Company recorded the following net gains or losses on sale of leasing equipment held for sale on the consolidated statements of operations (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Impairment reversal (loss) on equipment held for sale $ 3 $ (19,399 ) $ — Gain (loss) on sale of equipment-net of selling costs 35,809 (948 ) 2,013 Net gain (loss) on sale of leasing equipment $ 35,812 $ (20,347 ) $ 2,013 |
Schedule of Gain Loss on Sale of Leasing Equipment [Table Text Block] | During the years ended December 31, 2017 , 2016 , and 2015 , the Company recorded the following net gains or losses on sale of leasing equipment held for sale on the consolidated statements of operations (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Impairment reversal (loss) on equipment held for sale $ 3 $ (19,399 ) $ — Gain (loss) on sale of equipment-net of selling costs 35,809 (948 ) 2,013 Net gain (loss) on sale of leasing equipment $ 35,812 $ (20,347 ) $ 2,013 |
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] | Business Combinations The Company allocates the purchase price to assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair values of identifiable assets and liabilities is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash flows, discount rates, asset lives and market multiples, among other items. |
Goodwill | Goodwill Goodwill and intangible assets with indefinite lives are tested for impairment at least annually on October 31st of each fiscal year or more frequently if events occur or circumstances indicate that the fair value of a reporting unit may be below its carrying value. Goodwill has been allocated to the Company’s reporting units. In evaluating goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether further impairment testing is necessary. Among other relevant events and circumstances that affect the fair value of reporting units, the Company considers individual factors such as macroeconomic conditions, changes in its industry and the markets in which the Company operates, as well as its reporting units' historical and expected future financial performance. If, after assessing the totality of events or circumstances, an entity determines it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then the quantitative goodwill impairment test is unnecessary. The quantitative goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit is less than its fair value, no impairment exists. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The Company elected to perform the qualitative assessment for its evaluation of goodwill impairment during the year ended December 31, 2017 and concluded there was no impairment. Since inception through December 31, 2017 , the Company did not have any goodwill impairment. 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 subsequently reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company recorded no impairment charges related to intangible assets during the years ended December 31, 2017 , 2016 , and 2015 . |
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. 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 on 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] | Debt Costs Debt 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 debt 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 records derivative instruments on its balance sheet at 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) Derivative instruments are designated or non-designated for hedge accounting purposes. The fair value of the derivative instruments is measured at each balance sheet date and is reflected on a gross basis on the consolidated balance sheets. The change in fair value of the derivative instruments which are designated instruments 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 instruments 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. |
Income Taxes | Income Taxes The Company uses the liability method of accounting for income taxes, which requires recognition of deferred tax assets and liabilities based on the 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. Transaction gains and losses were immaterial for the years ended December 31, 2017 , 2016 , and 2015 . |
Stock-Based Compensation | Share-based Compensation The Company measures and recognizes share based awards granted to employees based on estimated fair values. Time based awards are measured at the grant date and are recognized as compensation expense over the employee's requisite service period, generally the vesting period of the equity award, on a straight-line basis. Performance-based awards are recognized as compensation expense when satisfaction of the performance condition is considered probable. The Company adopted accounting guidance in 2017 that changed the cash flow presentation of excess tax benefits for share-based payment arrangements. |
Comprehensive Income | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income attributable to shareholders by the weighted average number of common shares outstanding for the period. Any potential issuance of common shares, including those that are contingent and do not participate in dividends, are excluded from the weighted average number of common shares outstanding. 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. Note 2—Summary of Significant Accounting Policies (continued) There were no anti-dilutive restricted common shares excluded from the calculations of weighted average shares outstanding for diluted earnings per share for the year ended December 31, 2017 . There were 169,403 , and 65,237 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 , and 2015 , 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. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Standards Updates In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 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. Under this ASU, all excess tax benefits and deficiencies related to employee share-based compensation will be recognized within the provision for income taxes rather than additional paid-in capital. The Company adopted the guidance on January 1, 2017 which resulted in the recognition of excess tax benefits for prior periods as a reduction in our Net deferred income tax liability account and an increase in accumulated earnings in the amount of $6.6 million. The Company has not recognized any material excess tax benefits in 2017. In addition, the adoption of this ASU had no impact on the consolidated financial statements with respect to forfeited awards since historically the Company’s forfeitures have been minimal and therefore had not estimated a forfeitures rate. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The guidance eliminates Step 2 from the goodwill impairment test and provides that if a reporting unit’s fair value is less than its carrying amount, the Company will record an impairment charge based on that difference, up to the amount of goodwill allocated to that reporting unit. The Company adopted the guidance on October 31, 2017 on a prospective basis. The adoption of the guidance did not materially impact the Company's financial statements. Recently Issued Accounting Standards Updates In February 2016, the FASB issued 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 Topic 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 impact of this ASU on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606), amending previous updates regarding this topic. Leasing revenue recognition, including ancillary fees, is specifically excluded from this ASU, and therefore, the new standard will only apply to equipment trading revenues and sales of leasing equipment. The effective date is interim periods beginning after December 15, 2017. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. The Company plans to adopt the standard on its required effective date of January 1, 2018, using the modified retrospective approach. The adoption of Topic 606 will not impact its leasing revenue recognition model because, as noted above, leasing revenue recognition, including ancillary fees, is specifically excluded from this ASU. Note 2—Summary of Significant Accounting Policies (continued) The Company has assessed the requirements of the new revenue standard with respect to its equipment trading revenue and sales of leasing equipment and has concluded that the timing and amount of recognition will not be materially affected based on the fact that there generally are no long-term contracts, multiple element arrangements, or significant customer acquisition costs related to these revenue streams. The Company also considered the requirement to present disaggregated revenue for its equipment trading revenue and sales of leasing equipment upon the adoption of Topic 606. The Company currently presents these revenue items separately in its statement of operations. As a result, the Company has concluded that the adoption of Topic 606 will not have a significant impact on either the timing of its revenue recognition or manner of presentation. In June 2016, the FASB issued ASU 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 collectability. 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. Based on the composition of the Company's receivables, current market conditions, and historical credit loss activity, the Company does not expect the adoption of this ASU to have a significant impact on the consolidated financial statements. In August 2016, the FASB issued 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 does not expect the adoption of this ASU to have a significant impact on the consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Accounting for Income Taxes (Topic 740) : Intra-Entity Asset Transfers of Assets Other than Inventory . The ASU eliminates the deferral of the tax effects of intra-entity asset transfers other than inventory. As a result, the tax expense from the intercompany sale of assets, other than inventory, and associated changes to deferred taxes will be recognized when the sale occurs even though the pre-tax effects of the transaction have not been recognized. The update to the standard is effective for the Company for periods beginning after December 15, 2017. The Company does not expect the adoption of this ASU to have a significant impact on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . The amendments in this ASU 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 Company currently presents changes in restricted cash and cash equivalents in the financing section of its statement of cash flows. The update to the standard is effective for the Company for periods beginning after December 15, 2017. The Company currently plans to adopt this guidance in the first quarter of 2018 using the retrospective. The Company does not expect the adoption of this ASU to have a significant impact on the Company’s financial position, results of operations, or liquidity since the change will only impact the presentation of restricted cash and restricted cash equivalents within the consolidated statements of cash flows. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. ASU 2017-09 provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. This ASU is effective for interim periods beginning after December 15, 2017 and is required to be applied on a prospective basis. The Company does not expect the adoption of this ASU to have a significant impact on the consolidated financial statements. Note 2—Summary of Significant Accounting Policies (continued) In August 2017, FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 changes the recognition and presentation requirements of hedge accounting, including: eliminating the requirement to separately measure and report hedge ineffectiveness; and presenting all items that affect earnings in the same income statement line item as the hedged item. The ASU also provides new alternatives for: applying hedge accounting to additional hedging strategies; measuring the hedged item in fair value hedges of interest rate risk; reducing the cost and complexity of applying hedge accounting by easing the requirements for effectiveness testing, hedge documentation and application of the critical terms match method; and reducing the risk of material error correction if a company applies the shortcut method inappropriately. This ASU is effective for interim periods beginning after December 15, 2018. The Company is in the process of evaluating the impact of this ASU on the consolidated financial statements. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , 2016 , and 2015 , the Company recorded the following net gains or losses on sale of leasing equipment held for sale on the consolidated statements of operations (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Impairment reversal (loss) on equipment held for sale $ 3 $ (19,399 ) $ — Gain (loss) on sale of equipment-net of selling costs 35,809 (948 ) 2,013 Net gain (loss) on sale of leasing equipment $ 35,812 $ (20,347 ) $ 2,013 |
Schedule of estimated useful lives and residual values for the majority of the Company's leasing equipment | As of December 31, 2017 As of December 31, 2016 Equipment Type Depreciable Life Residual Value Depreciable Life Residual Value Dry containers 20-foot dry container 13 years $ 1,000 13 years $ 1,000 40-foot dry container 13 years $ 1,200 13 years $ 1,200 40-foot high cube dry container 13 years $ 1,400 13 years $ 1,400 Refrigerated containers 20-foot refrigerated container 12 years $2,250 to $2,500 12 years $2,250 to $2,500 40-foot high cube refrigerated container 12 years $3,250 to $3,500 12 years $3,250 to $3,500 Special containers 40-foot flat rack container 12 to 14 years $1,500 to $3,000 12 to 14 years $1,500 to $3,000 40-foot open top container 12 to 14 years $2,300 to $2,500 12 to 14 years $2,300 to $2,500 Tank containers 20 years $ 3,000 20 years $ 3,000 Chassis 20 years $ 1,200 20 years $ 1,200 As of December 31, 2017 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 As of 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, 2017 December 31, 2016 Dry container units $ 5,941,097 $ 4,839,648 Refrigerated container units 1,897,385 2,037,952 Special container units 287,869 265,666 Tank container units 105,821 107,933 Chassis 132,312 119,320 Total $ 8,364,484 $ 7,370,519 |
Schedule of fair value, which was measured using Level 2 inputs, and the carrying value of the Company's debt | December 31, 2017 December 31, 2016 Liabilities Total Debt(1) - carrying value $ 6,979,877 $ 6,415,664 Total Debt - fair value $ 6,991,537 $ 6,316,229 __________________________________________________________________ (1) Excludes unamortized debt costs of $40.6 million and $20.0 million as of December 31, 2017 and 2016 , respectively, and purchase price debt adjustments of $27.5 million and $42.2 million as of December 31, 2017 and 2016 , respectively. |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Business Combination, Separately Recognized Transactions [Table Text Block] | Transaction and other costs associated with the Merger for the years ended December 31, 2017 , 2016 and 2015 were as follows (in thousands): December 31, 2017 December 31, 2016 December 31, 2015 Employee compensation costs $ 9,271 $ 40,360 $ 3,520 Professional fees — 14,295 2,841 Legal expenses 10 3,370 3,919 Other (9 ) 2,412 — Total $ 9,272 $ 60,437 $ 10,280 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The acquired intangible assets are comprised of a lease intangible for leases acquired with lease rates that were above market and a customer intangible related to the chassis and tank customer lists acquired. The estimated weighted average remaining useful lives of 1.9 years for the lease intangibles and 1.5 years for customer intangibles are consistent with the expected remaining benefit period of these intangible assets. The following table summarizes the intangible assets amortization as of December 31, 2017 (in thousands): Years ending December 31, Above market lease intangibles Customer intangibles (1) Total intangible assets 2018 $ 61,451 $ 1,433 $ 62,884 2019 36,426 758 37,184 2020 22,632 — 22,632 2021 16,652 — 16,652 2022 10,572 — 10,572 2023 and thereafter 6,643 — 6,643 Total $ 154,376 $ 2,191 $ 156,567 |
Business Acquisition, Pro Forma Information [Table Text Block] | The unaudited pro forma financial information presented below is not necessarily indicative of results that might have been achieved had the Merger occurred as of January 1, 2015. The following table summarizes the unaudited pro forma results of operations (in thousands): December 31, 2016 December 31, 2015 Total leasing revenues $ 1,076,753 $ 1,198,148 Net income attributable to shareholders $ 36,015 $ 180,638 |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | Net assets acquired: Assets: 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 Other assets 32,084 Intangible Assets: Lease intangibles 298,457 Customer intangibles 4,300 Goodwill 236,665 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, 2017 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Schedule of Restricted Cash and Cash Equivalents [Table Text Block] | December 31, 2017 December 31, 2016 Collection accounts $ 23,676 $ 1,178 Trust accounts 14,601 18,906 Other restricted cash accounts 55,863 30,210 Total restricted cash $ 94,140 $ 50,294 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Instrument [Line Items] | |
Debt Disclosure [Text Block] | Debt Debt consisted of the following (amounts in thousands): December 31, 2017 December 31, 2016 Institutional notes $ 2,381,000 $ 2,233,874 Asset-backed securitization term notes 2,378,470 1,384,235 Term loan facilities 1,701,998 1,332,030 Asset-backed warehouse facilities 110,000 660,000 Revolving credit facilities 305,000 708,750 Capital lease obligations 103,409 96,775 Total debt outstanding 6,979,877 6,415,664 Debt costs (40,636 ) (19,999 ) Unamortized fair value debt adjustment (27,516 ) (42,216 ) Debt, net of unamortized debt costs $ 6,911,725 $ 6,353,449 The Company is subject to certain financial covenants under its debt agreements. The agreements remain the obligations of the respective subsidiaries, and all related debt covenants are calculated at the subsidiary level. As of December 31, 2017 and 2016 , the Company was in compliance with all financial covenants in accordance with the terms of its debt agreements. The Company recognized $7.0 million , $0.1 million , and $1.2 million of write-off of debt costs for the years ended December 31, 2017 , 2016 and 2015 , respectively, related to either a termination or modification of a debt arrangement. Note 6—Debt (continued) As of December 31, 2017 , the Company had $4,277.5 million of total debt outstanding on facilities with fixed interest rates. These fixed rate facilities had a contractual weighted average interest rate of 4.28% , are scheduled to mature between 2018 and 2029 , and had a weighted average remaining term of 4.3 years as of December 31, 2017 . As of December 31, 2017 , the Company had $2,702.4 million of total debt outstanding on facilities with interest rates based on floating rate indices (primarily LIBOR). These floating rate facilities had a contractual weighted average interest rate of 3.53% , are scheduled to mature between 2018 and 2024 , and had a weighted average remaining term of 3.0 years as of December 31, 2017 . Including the impact of the Company's interest rate swaps, the contractual weighted average interest rate on its floating rate facilities was 3.64% as of December 31, 2017 . 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, 2017 , the Company had interest rate swaps in place with a net notional amount of $1,740.8 million to fix the floating interest rates on a portion of its floating rate debt obligations, with a weighted average fixed leg interest rate of 1.70% and a weighted average remaining term of 3.3 years . As of December 31, 2017 , the Company had $6,018.3 million of total debt which is at fixed rates or is effectively fixed due to interest rate swap contracts. This accounts for 86% of total debt. These facilities had a contractual weighted average interest rate of 4.35% and a weighted average remaining term of 4.0 years as of December 31, 2017 . Overall, the Company's total debt, including the impact of the swap contracts, had a contractual weighted average interest rate of 4.03% as of December 31, 2017 . Debt Facilities Effective April 1, 2017, both TCIL and TAL obtained the necessary consents from lenders and noteholders to appoint TCIL as manager of all of TAL’s container fleet including those containers in special purpose entities of TAL. Institutional Notes In accordance with the institutional note agreements, interest payments on the Company's institutional notes are due 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. These facilities provide for an advance rate against the net book values of designated eligible equipment generally in the range from 83% to 85% . These institutional notes had a contractual weighted average interest rate of 4.77% as of December 31, 2017 and are scheduled to mature between 2018 and 2029 . On July 13, 2017, the Company completed an offering of $250.0 million of senior secured notes. The Series 2017 A-1 notes have an original principal amount of $105.0 million , an interest rate of 4.35% , and a scheduled maturity of June 30, 2027. The 2017 Series A-2 notes have an original principal amounts of $145.0 million , an interest rate of 4.64% , and a scheduled maturity of June 30, 2029. 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 the Company 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. These facilities provide for an advance rate against the net book values of designated eligible equipment generally in the range from 77% to 87% . The net book values for purposes of calculating eligible equipment is determined according to the related debt agreement and may be different than those calculated per U.S. GAAP. 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. Note 6—Debt (continued) These asset-backed securitization term notes had a contractual weighted average interest rate of 3.62% as of December 31, 2017 and are scheduled to mature between 2018 and 2027. On April 7, 2017, the Company completed an offering of $281.0 million of Class A fixed rate asset-backed notes. The notes have a contractual interest rate of 4.50% and a scheduled maturity of April 20, 2027. On June 15, 2017, the Company completed an offering of $318.9 million of Class A and B fixed rate asset-backed notes. The notes have a contractual weighted average interest rate of 3.57% and a scheduled maturity date of June 21, 2027. On July 20, 2017, the Company terminated and paid down $80.1 million of its principal amount on an asset-backed note. On August 14, 2017, the Company terminated and paid down $257.4 million of its principal amount on an asset-backed note. On August 23, 2017, the Company completed an offering of $450.0 million of Class A and B fixed rate asset-backed notes. The notes have a contractual weighted average interest rate of 3.66% and a scheduled maturity of August 20, 2027. On September 29, 2017, the Company completed an offering of $540.0 million asset-backed notes. The notes have a contractual interest rate of one-month LIBOR plus 2.15% margin with a scheduled maturity date of September 20, 2022. Term Loan Facilities The term loan facilities amortize in monthly or quarterly installments. These facilities provide for an advance rate against the net book values of designated eligible equipment generally in the range from 80% and 83% . These term loan facilities had a contractual weighted average interest rate of 3.50% as of December 31, 2017 , and are scheduled to mature between 2019 and 2022. On January 20, 2017, the Company increased its borrowing on a term loan facility by $50.0 million . This incremental borrowing has a contractual interest rate of one-month LIBOR plus 2.35% margin and a scheduled maturity date of December 19, 2020 which is aligned with the previous loans under the facility. On January 25, 2017, the Company increased its borrowing on a term loan facility by $50.0 million . This incremental borrowing has a contractual interest rate of one-month LIBOR plus 2.50% margin and a scheduled maturity date of June 20, 2022 which is aligned with the previous loans under the facility. On February 24, 2017, the Company secured financing on its property for $18.8 million . This arrangement has a contractual interest rate of three-month LIBOR plus 2.25% margin and a scheduled maturity date of March 1, 2020. On March 13, 2017, the Company increased its borrowings on a term loan facility by $25.0 million . This incremental borrowing has a contractual interest rate of one-month LIBOR plus 2.50% margin and a scheduled maturity date of June 20, 2022 which is aligned with the previous loans under this facility. On June 16, 2017, the Company entered into a term loan facility of $260.0 million . This term loan facility has a contractual interest rate of three-month LIBOR plus 2.25% margin and a scheduled maturity date of June 16, 2022. On June 20, 2017, the Company increased its borrowings on a term loan facility by $50.0 million . This incremental borrowing has a contractual interest rate of three-month LIBOR plus 2.25% margin and a scheduled maturity date of June 20, 2021 which is aligned with the previous loans under this facility. Asset-Backed Warehouse Facilities Under the Company’s Asset-Backed Warehouse (“ABW”) 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 ABW facilities are intended to be bankruptcy remote so that such assets are not available to creditors of the Company 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. Note 6—Debt (continued) The asset-backed warehouse facilities have a maximum borrowing capacity of $600.0 million . Under these facilities, funds are available on a revolving basis until a conversion date, after which if the facilities are not refinanced, the notes will convert to term notes. During the revolving period, the borrowing capacity under the facilities is determined by applying an advance rate against the net book values of designated eligible equipment. The approximate average advance rate for the two facilities is 80% . The net book values for purposes of calculating eligible equipment is determined according to the related debt agreement and may be different than those calculated per U.S. GAAP. The Company is required to maintain restricted cash balances on deposit in designated bank accounts equal to three to five months of interest expense. On March 10, 2017, the Company entered into a floating rate ABS warehouse facility with a borrowing capacity of $400.0 million . The first tranche of $200.0 million , which was subsequently canceled on October 20, 2017, had a one year revolving period followed by an eighteen month term period. The second tranche of $200.0 million has a two year revolving period followed by a three year term period. The facility has a contractual interest rate of three-month LIBOR plus 2.25% margin until March 10, 2019 when it would convert to a term note that has a contractual interest rate of three-month LIBOR plus 3.25% margin with a scheduled maturity date of March 21, 2022. On September 29, 2017, the Company terminated an ABS warehouse facility which had a borrowing capacity of $750.0 million and entered into a new ABS warehouse facility with a borrowing capacity of $400.0 million . This ABS warehouse facility has a contractual interest rate of one-month LIBOR plus 1.85% margin until September 28, 2020 when it would convert to a term note that has a contractual interest rate of 2.85% with a scheduled maturity date of September 20, 2024. Revolving Credit Facilities We have two revolving credit facilities which have a maximum borrowing capacity of $1,075.0 million . These facilities provide for an advance rate against the net book values of designated eligible equipment. The approximate average advance rate for the two facilities is 83% . These revolving credit facilities had a contractual weighted average interest rate of 3.67% as of December 31, 2017 and are scheduled to mature between 2020 and 2022. On June 16, 2017, the Company terminated a $450.0 million revolving credit facility and increased its credit limit on a separate facility from $600.0 million to $1,025.0 million , and extended the term of the facility to June 16, 2022. This revolving credit facility’s interest rate remained at one-month LIBOR plus 2.00% margin. Debt maturities excluding capital lease obligations (amounts in thousands): Years ending December 31, 2018 $ 715,385 2019 1,166,760 2020 998,683 2021 840,283 2022 1,465,378 2023 and thereafter 1,689,979 Total $ 6,876,468 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 3.26% to 4.93% , and mature between 2018 and 2024 . The Company entered into two lease transactions with financial institutions to finance the purchase of new containers for approximately $35 million during the first quarter of 2017. The lease transactions are accounted for as capital leases over the term period and contain early buyout options. Note 6—Debt (continued) At December 31, 2017 , future lease payments under these capital leases were as follows (in thousands): Years ending December 31, 2018 $ 31,954 2019 11,210 2020 10,766 2021 10,766 2022 10,766 2023 and thereafter 42,658 Total future payments 118,120 Less: amount representing interest (14,711 ) Capital lease obligations $ 103,409 |
Schedule of debt instruments | . December 31, 2017 December 31, 2016 Institutional notes $ 2,381,000 $ 2,233,874 Asset-backed securitization term notes 2,378,470 1,384,235 Term loan facilities 1,701,998 1,332,030 Asset-backed warehouse facilities 110,000 660,000 Revolving credit facilities 305,000 708,750 Capital lease obligations 103,409 96,775 Total debt outstanding 6,979,877 6,415,664 Debt costs (40,636 ) (19,999 ) Unamortized fair value debt adjustment (27,516 ) (42,216 ) Debt, net of unamortized debt costs $ 6,911,725 $ 6,353,449 Years ending December 31, 2018 $ 31,954 2019 11,210 2020 10,766 2021 10,766 2022 10,766 2023 and thereafter 42,658 Total future payments 118,120 Less: amount representing interest (14,711 ) Capital lease obligations $ 103,409 Years ending December 31, 2018 $ 715,385 2019 1,166,760 2020 998,683 2021 840,283 2022 1,465,378 2023 and thereafter 1,689,979 Total $ 6,876,468 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of interest rate swap contracts | As of December 31, 2017 , 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 summarized below: Derivatives Net Notional Amount Weighted Average Fixed Leg (Pay) Interest Rate Weighted Average Interest rate swaps $1,740.8 million 1.70% 3.3 years |
Schedule of fair value of derivative instruments | The fair value of derivative instruments on its consolidated balance sheets as of December 31, 2017 and December 31, 2016 was as follows (in thousands): Asset Derivatives Liability Derivatives Derivative Instrument December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Interest rate swap contracts, designated $ 3,554 $ 526 $ 2,503 $ 8,728 Interest rate swap contracts, not designated 3,822 5,217 — 676 Total derivatives $ 7,376 $ 5,743 $ 2,503 $ 9,404 December 31, 2017 Unrealized gain on derivative instruments designated as cash flow hedges $ 6,115 |
Schedule of derivatives instruments and their effect on consolidated statements of operations and consolidated statements of comprehensive income | T |
Net Investment in Finance Lea35
Net Investment in Finance Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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) $ 283,374 $ 353,811 Estimated residual receivable 64,560 65,793 Gross finance lease receivables 347,934 419,604 Unearned income (2) (52,043 ) (72,794 ) Net investment in finance leases (3) $ 295,891 $ 346,810 _______________________________________________________________________________ (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, 2017 and 2016 . (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, 2017 and 2016 . (3) As of December 31, 2017 and 2016 , approximately 46% and 43% of the Company's net investment in finance leases were with CMA CGM, respectively. As of December 31, 2017 and 2016 , approximately 28% and 23% of the Company's net investment in finance leases were with Hapag Lloyd AG, |
Schedule of contractual maturities of the Company’s gross finance lease receivables | Years ending December 31, 2018 $ 76,237 2019 70,776 2020 81,184 2021 46,372 2022 40,861 2023 and thereafter 32,504 Total $ 347,934 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
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] | The following table summarizes the Company’s restricted share activity for the years ended December 31, 2017 and 2016 : Number of Shares Outstanding Weighted Average Fair Value Non-vested balance at December 31, 2015 — $ — Shares converted (1) 253,942 14.56 Shares granted 465,097 14.55 Shares vested (83,847 ) 14.55 Non-vested balance at December 31, 2016 635,192 $ 14.55 Shares granted 161,194 24.99 Shares vested(2) (44,372 ) 26.20 Non-vested balance at December 31, 2017 752,014 $ 16.10 (1) Shares converted represent TCIL and TAL equity awards that were converted to Triton equity awards as part of the Merger. (2) Plan participants tendered 1,962 common shares, all of which were subsequently retired by the Company, to satisfy payment | |
Schedule of accumulated other comprehensive (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, 2016 $ 31,182 $ (4,424 ) $ 26,758 Change in fair value of derivative instruments designated as cash flow hedges (407 ) — (407 ) Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges 440 — 440 Foreign currency translation adjustment — 151 151 Other comprehensive income 33 151 184 Balance as of December 31, 2017 $ 31,215 $ (4,273 ) $ 26,942 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 | 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 |
Schedule of reclassifications out of accumulated other comprehensive (loss) | The following table summarizes 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, 2017 December 31, 2016 Amounts reclassified from accumulated other comprehensive (loss) before income tax $ 611 $ 1,200 Interest and debt expense Income tax (benefit) (171 ) (423 ) Income tax expense Amounts reclassified from accumulated other comprehensive (loss), net of tax $ 440 $ 777 Net income |
Segment and Geographic Inform37
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment information | (in thousands): As of and for the Year Ended December 31, 2017 Equipment Equipment Totals Total leasing revenues $ 1,160,196 $ 3,321 $ 1,163,517 Trading margin — 4,184 4,184 Net gain on sale of leasing equipment 35,812 — 35,812 Depreciation and amortization expense 500,099 621 500,720 Interest and debt expense 280,909 1,438 282,347 Realized loss on derivative instruments, net 900 — 900 Income before income taxes(1) 262,574 3,254 265,828 Equipment held for sale 31,534 11,661 43,195 Goodwill 220,864 15,801 236,665 Total assets 9,534,330 43,295 9,577,625 Purchases of leasing equipment and investments in finance leases(2) 1,562,863 — 1,562,863 As of and for the 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 Loss before income taxes(1) (6,302 ) (3,795 ) (10,097 ) Equipment held for sale 81,804 18,059 99,863 Goodwill 220,864 15,801 236,665 Total assets 8,660,786 52,785 8,713,571 Purchases of leasing equipment and investments in finance leases(2) 629,176 156 629,332 As of and for the Year Ended December 31, 2015 Equipment Equipment Totals Total leasing revenues $ 707,839 $ — $ 707,839 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 — — — Goodwill — — — Total assets 4,658,997 — 4,658,997 Purchases of leasing equipment and investments in finance leases(2) 398,799 — 398,799 _______________________________________________________________________________ (1) Segment income (loss) before income taxes excludes unrealized gains on interest rate swaps of $1.4 million , unrealized gains on interest rate swaps of $4.4 million , and unrealized losses on interest swaps of $2.2 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively, and the write-off of debt costs of $7.0 million , $0.1 million , and $1.2 million for the years ended December 31, 2017 , 2016 , and 2015 , 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, 2017 and 2016 (the Company had no equipment trading revenues in 2015 ) based on the location of the sale (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Total revenues: Asia $ 17,342 $ 7,410 Europe 8,383 4,439 Americas 7,747 3,082 Other International 3,925 1,487 Bermuda 22 — Total $ 37,419 $ 16,418 The following table summarizes the geographic allocation of equipment leasing revenues for the years ended December 31, 2017 , 2016 , and 2015 based on customers' primary domicile (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Total revenues: Asia $ 491,996 $ 397,500 $ 403,910 Europe 518,598 334,118 226,905 Americas 111,558 58,945 41,566 Bermuda 1,745 464 120 Other International 39,620 37,667 35,338 Total $ 1,163,517 $ 828,694 $ 707,839 |
Income Taxes Income Tax Expense
Income Taxes Income Tax Expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Unrecognized Tax Benefits | The following table summarizes unrecognized tax benefit amounts as follows (in thousands): December 31, 2017 December 31, 2016 Beginning balance at January 1 $ 7,777 $ 7,345 Increase related to current year’s tax position 1,315 1,233 Lapse of statute of limitations (898 ) (791 ) Foreign exchange adjustment 56 (10 ) Ending balance at December 31 $ 8,250 $ 7,777 |
Summary of Income Tax Interest and Penalties | The following table summarizes interest and penalty expense as follows (in thousands): December 31, 2017 December 31, 2016 December 31, 2015 Interest expense (benefit) $ 144 $ 121 $ 15 Penalty expense $ (64 ) $ (29 ) $ (98 ) |
Schedule of Components of Income Tax Expense (Benefit) | The following table summarizes the Company's income tax (benefit) expense as follows (in thousands): December 31, December 31, 2016 December 31, 2015 Current taxes: Bermuda $ — $ — $ — U.S. 36 (80 ) 487 Foreign 839 841 208 $ 875 $ 761 $ 695 Deferred taxes: Bermuda $ — $ — $ — U.S. (94,079 ) (709 ) 3,327 Foreign (70 ) (100 ) 26 (94,149 ) (809 ) 3,353 Total income tax (benefit) expense $ (93,274 ) $ (48 ) $ 4,048 The following table summarizes the components of income taxes payable included in accounts payable and other accrued expenses on the consolidated balance sheets were as follows (in thousands): December 31, 2017 December 31, 2016 Corporate income taxes payable $ 56 $ 32 Unrecognized tax benefits 8,250 7,777 Interest accrued 824 680 Penalties 561 625 Income taxes payable $ 9,691 $ 9,114 |
Schedule of Income before Income Tax, Domestic and Foreign | The following table summarizes the components of income (loss) before income taxes as follows (in thousands): December 31, December 31, 2016 December 31, 2015 Bermuda sources $ (4,011 ) $ — $ — U.S. sources 125,799 (7,451 ) 10,985 Foreign sources 138,464 1,618 120,732 Income (loss) before income taxes $ 260,252 $ (5,833 ) $ 131,717 |
Schedule of Effective Income Tax Rate Reconciliation | The following table summarizes the difference between the Bermuda statutory income tax rate and the effective tax rate on the consolidated statements of operations as follows: December 31, December 31, 2016 December 31, 2015 Bermuda tax rate — % — % — % Change in enacted tax rate (53.55 )% — % — % U.S. income taxed at other than the statutory rate 17.10 % 41.68 % 3.01 % Effect of uncertain tax positions 0.21 % (10.16 )% — % Foreign income taxed at other than the statutory rate 0.10 % (4.15 )% 0.23 % Effect of permanent differences 0.04 % (1.58 )% 0.05 % Other discrete items 0.26 % (24.97 )% (0.22 )% Effective income tax rate (35.84 )% 0.82 % 3.07 % |
Schedule of Deferred Tax Assets and Liabilities | The following table summarizes the deferred income tax assets and liabilities as follows (in thousands): December 31, 2017 December 31, 2016 Deferred income tax assets: Net operating loss carryforwards $ 197,089 $ 273,055 Passive activity loss carryforwards 7 12 Allowance for losses 622 4,250 Derivative instruments 1,529 5,514 Deferred income 261 35 Accrued liabilities and other payables 631 2,233 Total gross deferred tax assets 200,139 285,099 Less: Valuation allowance — (286 ) Net deferred tax assets $ 200,139 $ 284,813 Deferred income tax liabilities: Accelerated depreciation $ 382,961 $ 516,472 Goodwill and other intangible amortization 2,141 2,639 Derivative instruments 790 287 Deferred income 27,347 71,359 Deferred partnership income (TCI) 1,134 1,765 Other 1,205 9,607 Total gross deferred tax liability 415,578 602,129 Net deferred income tax liability $ 215,439 $ 317,316 |
Rental Income under Operating39
Rental Income under Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases, Operating [Abstract] | |
Schedule of Operating Leases Future Minimum Payments Receivable [Table Text Block] | Years ending December 31, 2018 $ 838,022 2019 675,678 2020 553,676 2021 437,027 2022 325,915 2023 and thereafter 488,061 Total $ 3,318,379 |
Commitments and Contingencies S
Commitments and Contingencies Schedule of Future Minimum Rental Payments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments [Table Text Block] | A roll-forward of the retention bonus liability balance is as follows (in thousands): Total Balance at December 31, 2015 $ 19,128 Liability Acquired 4,082 Accrual 7,384 Payments (5,419 ) Balance at December 31, 2016 $ 25,175 Accrual 2,853 Payments (28,028 ) Balance at December 31, 2017 $ — Note 15—Commitments and Contingencies (continued) Severance Plan TCIL and TAL 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 severance plans would receive a severance award and other benefits based upon their tenure with either TCIL or TAL. 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 Accrual 6,023 Payments (17,064 ) Balance at December 31, 2017 $ 9,677 |
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, 2017 were as follows (in thousands): Years ending December 31, 2018 $ 4,178 2019 2,034 2020 1,164 2021 627 2022 and thereafter 272 Total $ 8,275 |
Selected Quarterly Financial 41
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 : (In thousands, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2017 Total leasing revenues $ 265,602 $ 281,939 $ 302,120 $ 313,856 Trading margin $ 392 $ 1,328 $ 1,369 $ 1,095 Net gain on sale of leasing equipment $ 5,161 $ 9,639 $ 10,263 $ 10,749 Net income attributable to shareholders $ 34,611 $ 45,671 $ 57,156 $ 207,160 Net income per basic common share $ 0.47 $ 0.62 $ 0.76 $ 2.59 Net income per diluted common share $ 0.47 $ 0.62 $ 0.75 $ 2.57 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 income (loss) per basic common share $ 0.22 $ 0.15 $ (0.74 ) $ 0.31 Net income (loss) per diluted common share $ 0.22 $ 0.15 $ (0.74 ) $ 0.31 |
Related Party (Tables)
Related Party (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | he Company 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. The Company's equity investment in TriStar is included in other assets on the consolidated balance sheet. The following table summarizes payments, direct finance lease, and loan payable balances with TriStar (in thousands): December 31, 2017 December 31, 2016 Payments received from TriStar on direct finance leases $ 1,897 $ 1,670 Payments received from TriStar on loan payable $ 128 $ 45 Direct finance lease balance $ 10,648 $ 10,636 Loan payable balance $ — $ 126 |
Business and Basis of Present43
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 Accoun44
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | ||||
Adjustment to Purchase Price of Debt | $ 27,516 | $ 42,216 | ||
Provision (reversal) for doubtful accounts | 3,347 | 23,304 | $ (2,156) | |
Insurance Settlement, Amount | 67,000 | |||
Other Nonoperating Income (Expense) | $ 2,637 | $ 1,076 | $ (211) | |
Mediterranean Shipping Company [Member] | Operating and Capital Leases Billing [Member] [Domain] | Credit Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 14.00% | 15.00% | ||
Mediterranean Shipping Company [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 8.00% | 7.00% | ||
CMACGN | Operating and Capital Leases Billing [Member] [Domain] | Credit Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 19.00% | 17.00% | ||
CMACGN | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 23.00% | 23.00% | ||
Hanjin Shipping Co. [Member] | ||||
Concentration Risk [Line Items] | ||||
Provision (reversal) for doubtful accounts | $ 29,700 | |||
Leased Property Recovery Percentage | 94.00% | |||
Hanjin Shipping Co. [Member] | ||||
Concentration Risk [Line Items] | ||||
Other Nonoperating Income (Expense) | $ (6,800) |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Leasing Equipment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2018 | |
Property, Plant and Equipment [Line Items] | ||||||||||||
Net gain (loss) on sale of leasing equipment | $ 10,749,000 | $ 10,263,000 | $ 9,639,000 | $ 5,161,000 | $ (4,261,000) | $ (12,319,000) | $ (1,930,000) | $ (1,837,000) | $ 35,812,000 | $ (20,347,000) | $ 2,013,000 | |
Property Subject to or Available for Operating Lease, Net | 8,364,484,000 | 7,370,519,000 | 8,364,484,000 | 7,370,519,000 | ||||||||
Property Available for Operating Lease, Net | 509,500,000 | 524,900,000 | $ 509,500,000 | $ 524,900,000 | ||||||||
Dry Container Units 20 Foot | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful Lives | 13 years | 13 years | ||||||||||
Residual values from date of manufacture | 1,000 | 1,000 | $ 1,000 | $ 1,000 | ||||||||
Dry Container Units 40 Foot [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful Lives | 13 years | 13 years | ||||||||||
Residual values from date of manufacture | 1,200 | 1,200 | $ 1,200 | $ 1,200 | ||||||||
Dry Container Units 40 Foot High Cube [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful Lives | 13 years | 13 years | ||||||||||
Residual values from date of manufacture | 1,400 | 1,400 | $ 1,400 | $ 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 | $ 2,350 | |||||||||||
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 | 3,350 | |||||||||||
Special Container Units 40 Foot Flat Rack [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Residual values from date of manufacture | 1,700 | |||||||||||
Special Container Units 40 Foot Open Top [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Residual values from date of manufacture | $ 2,300 | |||||||||||
Dry container units | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Property Subject to or Available for Operating Lease, Net | 5,941,097,000 | 4,839,648,000 | $ 5,941,097,000 | $ 4,839,648,000 | ||||||||
Refrigerated container units | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Property Subject to or Available for Operating Lease, Net | 1,897,385,000 | 2,037,952,000 | 1,897,385,000 | 2,037,952,000 | ||||||||
Special container units | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Property Subject to or Available for Operating Lease, Net | 287,869,000 | 265,666,000 | $ 287,869,000 | $ 265,666,000 | ||||||||
Tank Container Units [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful Lives | 20 years | 20 years | ||||||||||
Residual values from date of manufacture | 3,000 | 3,000 | $ 3,000 | $ 3,000 | ||||||||
Property Subject to or Available for Operating Lease, Net | 105,821,000 | 107,933,000 | $ 105,821,000 | $ 107,933,000 | ||||||||
Chassis [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful Lives | 20 years | 20 years | ||||||||||
Residual values from date of manufacture | 1,200 | 1,200 | $ 1,200 | $ 1,200 | ||||||||
Property Subject to or Available for Operating Lease, Net | $ 132,312,000 | $ 119,320,000 | 132,312,000 | 119,320,000 | ||||||||
Long Lived Assets Held-for-sale, Name [Domain] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Net gain (loss) on sale of leasing equipment | 3,000 | (19,399,000) | 0 | |||||||||
Equipment, net of selling costs [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Net gain (loss) on sale of leasing equipment | $ 35,809,000 | $ (948,000) | $ 2,013,000 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 12, 2016 | Dec. 31, 2015 |
Goodwill [Line Items] | ||||
Goodwill | $ 236,665 | $ 236,665 | $ 236,665 | $ 0 |
Equipment leasing | ||||
Goodwill [Line Items] | ||||
Goodwill | 220,864 | 220,864 | 0 | |
Equipment trading | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 15,801 | $ 15,801 | $ 0 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||
Asset Impairment (Charges) Reversal, Net | $ (19,400) | ||||||||||
Net gain (loss) on sale of leasing equipment | $ 10,749 | $ 10,263 | $ 9,639 | $ 5,161 | $ (4,261) | $ (12,319) | $ (1,930) | $ (1,837) | 35,812 | $ (20,347) | $ 2,013 |
Debt, Unamortized Deferred Financing Costs | 40,636 | 19,999 | 40,636 | 19,999 | |||||||
Debt, net of unamortized debt costs of $40,636 and $19,999 | 6,911,725 | 6,353,449 | 6,911,725 | 6,353,449 | |||||||
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 | 6,979,877 | 6,415,664 | 6,979,877 | 6,415,664 | |||||||
Level 2 | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 2,242 | 12,063 | 2,242 | 12,063 | |||||||
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 | $ 6,991,537 | $ 6,316,229 | 6,991,537 | 6,316,229 | |||||||
Long Lived Assets Held-for-sale, Name [Domain] | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||
Net gain (loss) on sale of leasing equipment | $ 3 | $ (19,399) | $ 0 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Other Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segmentshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Jan. 01, 2018USD ($) | Aug. 31, 2016USD ($) | |
Impairment [Line Items] | |||||||||||||
Net gain (loss) on sale of leasing equipment | $ 10,749,000 | $ 10,263,000 | $ 9,639,000 | $ 5,161,000 | $ (4,261,000) | $ (12,319,000) | $ (1,930,000) | $ (1,837,000) | $ 35,812,000 | $ (20,347,000) | $ 2,013,000 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 0 | 169,403 | 65,237 | ||||||||||
Number of Reportable Segments | segment | 2 | ||||||||||||
Provision (reversal) for doubtful accounts | $ 3,347,000 | $ 23,304,000 | $ (2,156,000) | ||||||||||
Insurance receivable | 0 | 17,170,000 | 0 | 17,170,000 | |||||||||
Long Lived Assets Held-for-sale, Name [Domain] | |||||||||||||
Impairment [Line Items] | |||||||||||||
Net gain (loss) on sale of leasing equipment | 3,000 | (19,399,000) | 0 | ||||||||||
Equipment, net of selling costs [Member] | |||||||||||||
Impairment [Line Items] | |||||||||||||
Net gain (loss) on sale of leasing equipment | 35,809,000 | (948,000) | 2,013,000 | ||||||||||
Refrigerated Container Units 20 Foot [Member] | |||||||||||||
Impairment [Line Items] | |||||||||||||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 2,350 | ||||||||||||
Dry Container Units 40 Foot [Member] | |||||||||||||
Impairment [Line Items] | |||||||||||||
Property Subject to or Available for Operating Lease Net Salvage Value | 1,200 | 1,200 | 1,200 | 1,200 | |||||||||
Dry Container Units 40 Foot High Cube [Member] | |||||||||||||
Impairment [Line Items] | |||||||||||||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 1,400 | $ 1,400 | $ 1,400 | $ 1,400 | |||||||||
Triton Container Investments LLC [Member] | |||||||||||||
Impairment [Line Items] | |||||||||||||
Equity Method Investment, Ownership Percentage | 55.60% | 53.40% | 55.60% | 53.40% | |||||||||
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 | ||||||||||||
Provision (reversal) for doubtful accounts | $ 29,700,000 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies Residual Values (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease, Net | $ 8,364,484,000 | $ 7,370,519,000 | ||
Special Container Units [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease, Net | $ 287,869,000 | $ 265,666,000 | ||
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 | 13 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 | 13 years | 13 years | ||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 1,200 | $ 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 | 13 years | 13 years | ||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 1,400 | $ 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 | $ 2,350 | |||
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 | 3,350 | |||
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 Salvage Value | 1,700 | |||
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 Salvage Value | $ 2,300 | |||
Tank Container Units [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease, Net | $ 105,821,000 | $ 107,933,000 | ||
Property Subject to or Available for Operating Lease Net Useful Life Average | 20 years | 20 years | ||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 3,000 | $ 3,000 | ||
Chassis [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease, Net | $ 132,312,000 | $ 119,320,000 | ||
Property Subject to or Available for Operating Lease Net Useful Life Average | 20 years | 20 years | ||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 1,200 | $ 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 | 5,941,097,000 | 4,839,648,000 | ||
Refrigerated Container Units [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Property Subject to or Available for Operating Lease, Net | 1,897,385,000 | 2,037,952,000 | ||
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 | 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 | $ 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 | 14 years | ||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 3,000 | $ 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 | 14 years | ||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 2,500 | $ 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 | 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 | $ 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 | 12 years | ||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 1,500 | $ 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 | 12 years | ||
Property Subject to or Available for Operating Lease Net Salvage Value | $ 2,300 | $ 2,300 | ||
Scenario, Forecast [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 | 16 years |
Fair Value of Financial Instr50
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Capital Leases, Net Investment in Direct Financing and Sales Type Leases | $ 295,891 | $ 346,810 |
Asset Impairment (Charges) Reversal, Net | (19,400) | |
Debt, Unamortized Deferred Financing Costs | 40,636 | 19,999 |
Adjustment to Purchase Price of Debt | 27,516 | 42,216 |
Fair value of derivative instruments | 7,376 | 5,743 |
Fair value of derivative instruments | 2,503 | 9,404 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | (2,242) | (12,063) |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivative instruments | 3,822 | 5,217 |
Fair value of derivative instruments | 0 | 676 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivative instruments | 3,554 | 526 |
Fair value of derivative instruments | 2,503 | 8,728 |
Carrying value containers impaired to fair value [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | $ (6,104) | $ (41,067) |
Business Combination (Details)
Business Combination (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | 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 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 32,084 | |||||||||||
Goodwill | $ 236,665 | $ 236,665 | $ 236,665 | $ 236,665 | $ 0 | 236,665 | ||||||
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 | 0 | 510,186 | 0 | 510,186 | 0 | $ 510,186 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 62,884 | 62,884 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 37,184 | 37,184 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 22,632 | 22,632 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 16,652 | 16,652 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Five | 10,572 | 10,572 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling after Year Five | 6,643 | 6,643 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Remaining Total Balance | 156,567 | 156,567 | ||||||||||
Operating and Capital Leases Income Statement Lease Revenue | 313,856 | $ 302,120 | $ 281,939 | $ 265,602 | 259,547 | $ 247,789 | $ 158,333 | $ 163,025 | 1,163,517 | 828,694 | 707,839 | |
Business Acquisition, Pro Forma Revenue | 1,076,753 | 1,198,148 | ||||||||||
Transaction and other costs | 9,272 | 66,916 | 22,185 | |||||||||
Business Acquisition, Pro Forma Net Income (Loss) | 36,015 | 180,638 | ||||||||||
Net (loss) income | 207,160 | $ 57,156 | $ 45,671 | $ 34,611 | $ 22,778 | $ (51,211) | $ 6,174 | $ 8,742 | 344,598 | (13,517) | 111,089 | |
AboveMarketLeaseIntangibles [Domain] | ||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 61,451 | 61,451 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 36,426 | 36,426 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 22,632 | 22,632 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 16,652 | 16,652 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Five | 10,572 | 10,572 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling after Year Five | 6,643 | 6,643 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Remaining Total Balance | 154,376 | 154,376 | ||||||||||
CustomerIntangibles [Domain] | ||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 1,433 | 1,433 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 758 | 758 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 0 | 0 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 0 | 0 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Five | 0 | 0 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling after Year Five | 0 | 0 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Remaining Total Balance | $ 2,191 | 2,191 | ||||||||||
Merger Specific [Domain] | ||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Transaction and other costs | 9,272 | 60,437 | 10,280 | |||||||||
TAL [Member] | ||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 45.00% | |||||||||||
Common Stock, Shares, Outstanding | 33.4 | |||||||||||
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 | 9,271 | 40,360 | 3,520 | |||||||||
Professional Fees Expense [Member] | Merger Specific [Domain] | ||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Transaction and other costs | 0 | 14,295 | 2,841 | |||||||||
Legal Expense [Member] | Merger Specific [Domain] | ||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Transaction and other costs | 10 | 3,370 | 3,919 | |||||||||
Other Expense [Member] | Merger Specific [Domain] | ||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Transaction and other costs | $ (9) | $ 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 | 1 year 11 months | |||||||||||
Other Intangible Assets [Member] | ||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 1 year 6 months |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 94,140 | $ 50,294 |
Restricted Stock [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 23,676 | 1,178 |
Restricted Stock [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 14,601 | 18,906 |
Restricted Stock [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 55,863 | $ 30,210 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 29, 2017 | Aug. 23, 2017 | Aug. 14, 2017 | Jul. 20, 2017 | Jul. 13, 2017 | Jun. 20, 2017 | Jun. 16, 2017 | Jun. 15, 2017 | Apr. 07, 2017 | Mar. 13, 2017 | Mar. 10, 2017 | Mar. 09, 2017 | Feb. 24, 2017 | Jan. 31, 2017 | Jan. 25, 2017 | Jan. 20, 2017 | |
Debt | |||||||||||||||||||
Restricted cash | $ 94,140 | $ 50,294 | |||||||||||||||||
Debt, Unamortized Deferred Financing Costs | (40,636) | (19,999) | |||||||||||||||||
Adjustment to Purchase Price of Debt | (27,516) | (42,216) | |||||||||||||||||
Debt and Capital Lease Obligations, net of deferred financing costs | 6,911,725 | 6,353,449 | |||||||||||||||||
Debt outstanding on facilities with fixed interest rates | $ 4,277,500 | ||||||||||||||||||
Debt Instrument Interest Rate During Period Fixed Rate Debt | 4.28% | ||||||||||||||||||
Long Term Debt, Percentage Bearing Fixed Interest Rate Remaining Term | 4 years 3 months | ||||||||||||||||||
Debt outstanding on facilities with interest rates based on floating rate indices | $ 2,702,400 | ||||||||||||||||||
Debt Instrument Interest Rate During Period Variable Rate Debt | 3.53% | ||||||||||||||||||
Long Term Debt, Percentage Bearing Variable Interest Rate Remaining Term | 3 years | ||||||||||||||||||
Net Notional Amount of Interest Rate Swaps | $ 400,000 | ||||||||||||||||||
Percentage of Debt Hedged by Interest Rate Derivatives | 86.20% | ||||||||||||||||||
Debt Instrument Interest Rate During Period Fixed Rate and Interest Swap Rate Debt | 4.35% | ||||||||||||||||||
Hedged Portion of Debt Average Remaining Maturity | 4 years | ||||||||||||||||||
Debt maturities (excluding capital lease obligations) | |||||||||||||||||||
2,018 | $ 715,385 | ||||||||||||||||||
2,019 | 1,166,760 | ||||||||||||||||||
2,020 | 998,683 | ||||||||||||||||||
2,021 | 840,283 | ||||||||||||||||||
2,022 | 1,465,378 | ||||||||||||||||||
2023 and thereafter | 1,689,979 | ||||||||||||||||||
Total | 6,876,468 | ||||||||||||||||||
Future lease payments under these capital leases | |||||||||||||||||||
2,018 | 31,954 | ||||||||||||||||||
2,019 | 11,210 | ||||||||||||||||||
2,020 | 10,766 | ||||||||||||||||||
2,021 | 10,766 | ||||||||||||||||||
2,022 | 10,766 | ||||||||||||||||||
2023 and thereafter | 42,658 | ||||||||||||||||||
Total future payments | 118,120 | ||||||||||||||||||
Less: amount representing interest | (14,711) | ||||||||||||||||||
Capital lease obligations | 103,409 | ||||||||||||||||||
Write-off of debt costs | $ 6,973 | 141 | $ 1,170 | ||||||||||||||||
Debt Instrument, Interest Rate During Period | 4.03% | ||||||||||||||||||
Interest Rate Swap [Member] | |||||||||||||||||||
Debt | |||||||||||||||||||
Net Notional Amount of Interest Rate Swaps | $ 1,740,800 | ||||||||||||||||||
Interest Rate Swaps Average Remaining Maturity | 3 years 3 months | ||||||||||||||||||
Interest Rate Swaps Derivative Average Fixed Pay Interest Rate | 1.70% | ||||||||||||||||||
Term Notes [Member] | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt, net of unamortized debt costs | 3.50% | ||||||||||||||||||
Institutional Notes [Domain] | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 2,381,000 | 2,233,874 | $ 250,000 | ||||||||||||||||
Debt, net of unamortized debt costs | 4.77% | ||||||||||||||||||
Asset-backed securitization term notes | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 2,378,470 | 1,384,235 | $ 450,000 | $ 319,000 | $ 281,000 | ||||||||||||||
Debt, net of unamortized debt costs | 3.62% | ||||||||||||||||||
Term loan facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 1,701,998 | 1,332,030 | |||||||||||||||||
Asset-backed warehouse facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | 110,000 | 660,000 | |||||||||||||||||
Borrowing capacity | $ 600,000 | ||||||||||||||||||
Debt Instrument, Advance Rate Used in Calculating Borrowing Capacity | 80.00% | ||||||||||||||||||
Revolving credit facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 305,000 | 708,750 | |||||||||||||||||
Debt, net of unamortized debt costs | 3.67% | ||||||||||||||||||
Borrowing capacity | $ 1,075,000 | ||||||||||||||||||
Debt Instrument, Advance Rate Used in Calculating Borrowing Capacity | 83.00% | ||||||||||||||||||
Capital lease obligations | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 103,409 | $ 96,775 | $ 35,000 | ||||||||||||||||
Interest Rate Swap [Member] | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 6,018,300 | ||||||||||||||||||
Debt Instrument Interest Rate During Period Variable Rate Debt | 3.64% | ||||||||||||||||||
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 | 77.00% | ||||||||||||||||||
Minimum [Member] | Capital lease obligations | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt, net of unamortized debt costs | 3.26% | ||||||||||||||||||
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 | 83.00% | ||||||||||||||||||
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 debt costs | 4.93% | ||||||||||||||||||
TAL Finance III [Member] | Asset-backed securitization term notes | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 540,000 | ||||||||||||||||||
TAL III Warehouse Facility [Member] | Term loan facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | 750,000 | ||||||||||||||||||
TAL Finance III Warehouse Facility [Member] | Term loan facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 400,000 | ||||||||||||||||||
TCIL BofA Revolver [Domain] | Revolving credit facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 600,000 | ||||||||||||||||||
Term Loan Facility [Member] | ABN [Domain] | Term loan facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 50,000 | ||||||||||||||||||
Term Loan Facility [Member] | DVB [Domain] | Term loan facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 25,000 | $ 50,000 | |||||||||||||||||
Term Loan Facility [Member] | TCIL CB&T Term [Domain] | Term loan facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 19,000 | ||||||||||||||||||
Term Loan Facility [Member] | TAL BoA Term [Domain] | Term loan facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | 260,000 | ||||||||||||||||||
Term Loan Facility [Member] | ING [Domain] | Term loan facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 50,000 | ||||||||||||||||||
Term Loan Facility [Member] | Combined TCF V Asset Backed Warehouse Facility [Member] | Term loan facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 400,000 | ||||||||||||||||||
Term Loan Facility [Member] | First TCF V Asset Backed Warehouse Facility [Domain] | Term loan facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | 200,000 | ||||||||||||||||||
Term Loan Facility [Member] | Second TCF V Asset Backed Warehouse Facility [Member] | Term loan facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 200,000 | ||||||||||||||||||
TCF III [Domain] | Asset-backed securitization term notes | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 257,000 | ||||||||||||||||||
TCF II [Domain] | Asset-backed securitization term notes | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 80,000 | ||||||||||||||||||
BofA [Member] | Revolving credit facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | 450,000 | ||||||||||||||||||
Restructured Amount [Domain] | TCIL BofA Revolver [Domain] | Revolving credit facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 1,025,000 | ||||||||||||||||||
Contractual [Member] | TAL Finance III [Member] | Asset-backed securitization term notes | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt, net of unamortized debt costs | 2.15% | ||||||||||||||||||
Contractual [Member] | ABN [Domain] | Term Loan Facility [Member] | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt, net of unamortized debt costs | 2.35% | ||||||||||||||||||
Contractual [Member] | DVB [Domain] | Term Loan Facility [Member] | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt, net of unamortized debt costs | 2.50% | 2.50% | |||||||||||||||||
Contractual [Member] | TCIL CB&T Term [Domain] | Term Loan Facility [Member] | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt, net of unamortized debt costs | 2.25% | ||||||||||||||||||
Contractual [Member] | TAL BoA Term [Domain] | Term Loan Facility [Member] | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt, net of unamortized debt costs | 2.25% | ||||||||||||||||||
Contractual [Member] | ING [Domain] | Term Loan Facility [Member] | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt, net of unamortized debt costs | 2.25% | ||||||||||||||||||
Contractual [Member] | First TCF V Asset Backed Warehouse Facility [Domain] | Minimum [Member] | Revolving Credit Facility [Member] | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt, net of unamortized debt costs | 2.25% | ||||||||||||||||||
Contractual [Member] | First TCF V Asset Backed Warehouse Facility [Domain] | Maximum [Member] | Revolving Credit Facility [Member] | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt, net of unamortized debt costs | 3.25% | ||||||||||||||||||
Contractual [Member] | TAL Finance III Warehouse Facility [Member] | Minimum [Member] | Revolving Credit Facility [Member] | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt, net of unamortized debt costs | 1.85% | ||||||||||||||||||
Contractual [Member] | TAL Finance III Warehouse Facility [Member] | Maximum [Member] | Revolving Credit Facility [Member] | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt, net of unamortized debt costs | 2.85% | ||||||||||||||||||
Contractual [Member] | TCIL BofA Revolver [Domain] | Revolving credit facilities | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt, net of unamortized debt costs | 2.00% | ||||||||||||||||||
Contractual [Member] | Asset-backed securitization term notes | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt, net of unamortized debt costs | 3.66% | 3.57% | 4.50% | ||||||||||||||||
Contractual [Member] | 4.35% A-1 Notes [Member] | Institutional Notes [Domain] | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 105,000 | ||||||||||||||||||
Debt, net of unamortized debt costs | 4.35% | ||||||||||||||||||
Contractual [Member] | 4.64% A-2 Notes [Member] | Institutional Notes [Domain] | |||||||||||||||||||
Debt | |||||||||||||||||||
Debt and Capital Lease Obligations | $ 145,000 | ||||||||||||||||||
Debt, net of unamortized debt costs | 4.64% |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2017 | Mar. 09, 2017 | |
Derivative Instruments | |||
Net Notional Amount of Interest Rate Swaps | $ 400 | ||
Interest Rate Swap [Member] | |||
Derivative Instruments | |||
Net Notional Amount of Interest Rate Swaps | $ 1,740.8 | ||
Weighted average fixed leg (Pay) interest rate (as a percent) | 1.70% | ||
Interest Rate Swaps Average Remaining Maturity | 3 years 3 months | ||
Interest Rate Cap [Member] | |||
Derivative Instruments | |||
Net Notional Amount of Interest Rate Swaps | $ 69.2 | ||
Cash Flow Hedges | Designated as Hedging Instrument [Member] | |||
Derivative Instruments | |||
Unrealized gain on derivatives | $ 6,115 |
Derivative Instruments (Detai55
Derivative Instruments (Details 2) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value of Derivative Instruments | ||
Fair value of derivative instruments (assets) | $ 7,376 | $ 5,743 |
Fair value of derivative instruments (liabilities) | 2,503 | 9,404 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Derivative Instruments | ||
Fair value of derivative instruments (assets) | 3,554 | 526 |
Fair value of derivative instruments (liabilities) | 2,503 | 8,728 |
Interest Rate Swap [Member] | Derivatives Not Designated as Hedging Instruments | ||
Fair Value of Derivative Instruments | ||
Fair value of derivative instruments (assets) | 3,822 | 5,217 |
Fair value of derivative instruments (liabilities) | $ 0 | $ 676 |
Derivative Instruments (Detai56
Derivative Instruments (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 09, 2017 | |
Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | |||||
Net Notional Amount of Interest Rate Swaps | $ 400,000 | ||||
Fair value of derivative instruments (assets) | $ 7,376 | $ 5,743 | |||
Fair value of derivative instruments (liabilities) | 2,503 | 9,404 | |||
Realized loss on derivative instruments, net | 900 | 3,438 | $ 5,496 | ||
Non-designated interest rate swaps | (1,397) | (4,405) | 2,240 | ||
Write-off of debt costs | 6,973 | 141 | 1,170 | ||
Interest rate swap agreements | |||||
Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | |||||
Net Notional Amount of Interest Rate Swaps | 1,740,800 | ||||
Derivative Instrument, Notional Amount of Termination, Interest Rate Swap | $ 193,100 | ||||
Derivative Instrument, Cash proceeds from Termination, Interest Rate Swap | 2,100 | ||||
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) | 3,822 | 5,217 | |||
Fair value of derivative instruments (liabilities) | 0 | 676 | |||
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) | 3,554 | 526 | |||
Fair value of derivative instruments (liabilities) | 2,503 | 8,728 | |||
Non-designated interest rate swaps | (1,397) | (4,405) | 2,240 | ||
Interest rate swap agreements | Designated as Hedging Instrument [Member] | Other comprehensive loss (income) | |||||
Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | |||||
Designated interest rate swaps | 600 | (46,900) | 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 | |||||
Designated interest rate swaps | $ 600 | $ 1,000 | $ 0 | ||
Interest Rate Cap [Member] | |||||
Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | |||||
Net Notional Amount of Interest Rate Swaps | $ 69,200 |
Net Investment in Finance Lea57
Net Investment in Finance Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | ||
capital leases, future minimum payments excluding residual values | $ 283,374 | $ 353,811 |
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 | 64,560 | 65,793 |
Components of the net investment in finance leases | ||
Allowance on gross finance lease receivables | 0 | (527) |
Gross finance lease receivables | 347,934 | 419,604 |
Unearned income (2) | (52,043) | (72,794) |
Net investment in finance leases (3) | 295,891 | 346,810 |
Capital Leases, Net Investment in Direct Financing Leases, Initial Direct Costs | $ 0 | $ 0 |
CMA CGM [Member] [Domain] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 46.00% | 43.00% |
HapagLloyd [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 28.00% | 23.00% |
Net Investment in Finance Lea58
Net Investment in Finance Leases (Details 2) $ in Thousands | Dec. 31, 2017USD ($) |
Leases, Capital [Abstract] | |
Capital Leases, Future Minimum Payments Receivable, Next Twelve Months | $ 76,237 |
Capital Leases, Future Minimum Payments, Receivable in Two Years | 70,776 |
Capital Leases, Future Minimum Payments, Receivable in Three Years | 81,184 |
Capital Leases, Future Minimum Payments, Receivable in Four Years | 46,372 |
Capital Leases, Future Minimum Payments, Receivable in Five Years | 40,861 |
Capital Leases, Future Minimum Payments, Receivable Due Thereafter | 32,504 |
Future minimum lease payment receivable (1) | $ 347,934 |
Net Investment in Finance Lea59
Net Investment in Finance Leases (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finance Lease - Allowance for doubtful accounts | |||
Changes in valuation and qualifying accounts | |||
Beginning Balance | $ 527 | $ 526 | $ 526 |
Additions/ (Reversals) | 1 | 0 | |
Ending Balance | $ 0 | $ 527 | $ 526 |
CMA CGM [Member] [Domain] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Concentration Risk, Percentage | 46.00% | 43.00% | |
HapagLloyd [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Concentration Risk, Percentage | 28.00% | 23.00% |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 22, 2017 | Sep. 22, 2017 | Sep. 12, 2017 | May 10, 2017 | Sep. 07, 2016 | Jul. 12, 2016 | Jul. 08, 2016 | Nov. 09, 2015 | May 23, 2011 | Jan. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Stock based compensation plans | |||||||||||||
Share-based compensation expense | $ 0.4 | $ 2.3 | $ 11.5 | ||||||||||
Restricted stock vested in period | 44,372 | 83,847 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Units Converted in Period, Weighted Average Grant Date Fair Value | $ 14.56 | ||||||||||||
Offering costs | $ 1.3 | ||||||||||||
2016 Equity Plan [Member] | |||||||||||||
Stock based compensation plans | |||||||||||||
Shares authorized (in shares) | 5,000,000 | ||||||||||||
2016 Triton Plan [Member] | |||||||||||||
Stock based compensation plans | |||||||||||||
Total unrecognized compensation cost | $ 7.3 | ||||||||||||
Vesting period | 1 year 8 months | ||||||||||||
TCIL [Member] | |||||||||||||
Stock based compensation plans | |||||||||||||
Share exchange ratio | 80.00% | ||||||||||||
Common Class A [Member] | |||||||||||||
Stock based compensation plans | |||||||||||||
Stock Issued During Period, Shares, New Issues | 0 | 140,237 | 406,970.4 | ||||||||||
Common Class A [Member] | Option Plan [Member] | |||||||||||||
Stock based compensation plans | |||||||||||||
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 | $ 7.1 | $ 12.6 | |||||||||||
Options exercised (in shares) | 232,300 | 297,000 | |||||||||||
Common Stock [Member] | |||||||||||||
Stock based compensation plans | |||||||||||||
Stock Issued During Period, Shares, New Issues | 802,500 | 5,350,000 | |||||||||||
Sale of Stock, Price Per Share | $ 32.75 | $ 32.75 | $ 32.75 | ||||||||||
Proceeds from Issuance of Common Stock | $ 192.9 | ||||||||||||
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] | 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 | 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) | 113,942 | ||||||||||||
Restricted stock | Common Class A [Member] | TAL [Member] | |||||||||||||
Stock based compensation plans | |||||||||||||
Restricted shares granted (in shares) | 140,000 | ||||||||||||
Restricted stock | Common Stock [Member] | 2016 Triton Plan [Member] | |||||||||||||
Stock based compensation plans | |||||||||||||
Number of Shares Tendered by Plan Participants in Connection with Option Exercises | 1,962 | ||||||||||||
Director [Member] | |||||||||||||
Stock based compensation plans | |||||||||||||
Share-based compensation expense | $ 0.3 | $ 0.5 | |||||||||||
Director [Member] | Restricted stock | Common Stock [Member] | 2016 Triton Plan [Member] | |||||||||||||
Stock based compensation plans | |||||||||||||
Restricted shares granted (in shares) | 38,675 | 47,075 | |||||||||||
Employees, Non-Directors [Member] | Restricted stock | Common Stock [Member] | 2016 Triton Plan [Member] | |||||||||||||
Stock based compensation plans | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Units Converted in Period, Weighted Average Grant Date Fair Value | $ 28.04 | $ 14.55 |
Capital Stock Restricted Stock
Capital Stock Restricted Stock Activity (Details) - USD ($) | Sep. 22, 2017 | Sep. 12, 2017 | May 10, 2017 | Sep. 07, 2016 | Jul. 12, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Number of Shares Outstanding | ||||||||
Converted restricted stock beginning balance (in shares) | 635,192 | 0 | ||||||
Units converted (in shares) | 253,942 | |||||||
Granted (in shares) | 161,194 | 465,097 | ||||||
Vested (in shares) | (44,372) | (83,847) | ||||||
Nonvested ending balance (in shares) | 752,014 | 635,192 | 0 | |||||
Weighted Average Grant Date Fair Value | ||||||||
Weighted Average Grant Date Fair Value - Outstanding (in dollars per share) | $ 16.10 | $ 14.55 | $ 0 | |||||
Weighted Average Grant Date Fair Value - Units converted (in dollars per share) | 14.56 | |||||||
Weighted Average Grant Date Fair Value - Granted (in dollars per share) | 24.99 | 14.55 | ||||||
Weighted Average Grant Date Fair Value - Vested (in dollars per share) | $ 26.20 | $ 14.55 | ||||||
Allocated Share-based Compensation Expense | $ 400,000 | $ 2,300,000 | $ 11,500,000 | |||||
Director [Member] | ||||||||
Weighted Average Grant Date Fair Value | ||||||||
Allocated Share-based Compensation Expense | $ 300,000 | $ 500,000 | ||||||
Common Stock [Member] | ||||||||
Weighted Average Grant Date Fair Value | ||||||||
Stock Issued During Period, Shares, New Issues | 802,500 | 5,350,000 | ||||||
2016 Triton Plan [Member] | ||||||||
Weighted Average Grant Date Fair Value | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year 8 months | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 7,300,000 | |||||||
2016 Triton Plan [Member] | Restricted Stock [Member] | Common Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Settled or Cancelled | 1,962 | |||||||
2016 Triton Plan [Member] | Restricted Stock [Member] | Common Stock [Member] | Director [Member] | ||||||||
Weighted Average Grant Date Fair Value | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 38,675 | 47,075 | ||||||
2016 Triton Plan [Member] | Restricted Stock [Member] | Common Stock [Member] | Employees, Non-Directors [Member] | ||||||||
Weighted Average Grant Date Fair Value | ||||||||
Weighted Average Grant Date Fair Value - Units converted (in dollars per share) | $ 28.04 | $ 14.55 | ||||||
2016 Triton Plan [Member] | Restricted Stock [Member] | Common Stock [Member] | Non-Employee Directors of the Company [Domain] | ||||||||
Weighted Average Grant Date Fair Value | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 1,100,000 | $ 700,000 |
Capital Stock AOCI (Details)
Capital Stock AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||
Beginning balance | $ 26,758 | $ 26,758 | |||||||||
Change in fair value of derivative instruments designated as cash flow hedges | (407) | $ 30,405 | $ 0 | ||||||||
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges | 440 | 777 | 0 | ||||||||
Foreign currency translation adjustment | 151 | (758) | (408) | ||||||||
Other comprehensive income | 353,710 | 24,639 | 127,261 | ||||||||
Ending balance | $ 26,942 | $ 26,758 | 26,942 | 26,758 | |||||||
Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) | |||||||||||
Income tax (benefit) | (93,274) | (48) | 4,048 | ||||||||
Amounts reclassified from accumulated other comprehensive (loss), net of tax | 207,160 | $ 57,156 | $ 45,671 | 34,611 | 22,778 | $ (51,211) | $ 6,174 | $ 8,742 | 344,598 | (13,517) | 111,089 |
Cash Flow Hedges | |||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||
Beginning balance | 31,182 | 0 | 31,182 | 0 | |||||||
Change in fair value of derivative instruments designated as cash flow hedges | (407) | 30,405 | |||||||||
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges | 440 | 777 | |||||||||
Foreign currency translation adjustment | 0 | 0 | |||||||||
Other comprehensive income | 33 | 31,182 | |||||||||
Ending balance | 31,215 | 31,182 | 31,215 | 31,182 | 0 | ||||||
Foreign Currency Translation | |||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||
Beginning balance | (4,424) | (3,666) | (4,424) | (3,666) | |||||||
Change in fair value of derivative instruments designated as cash flow hedges | 0 | 0 | |||||||||
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges | 0 | 0 | |||||||||
Foreign currency translation adjustment | 151 | (758) | |||||||||
Other comprehensive income | 151 | (758) | |||||||||
Ending balance | (4,273) | (4,424) | (4,273) | (4,424) | (3,666) | ||||||
Accumulated Other Comprehensive (Loss) Income | |||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||
Beginning balance | $ 26,758 | $ (3,666) | 26,758 | (3,666) | |||||||
Change in fair value of derivative instruments designated as cash flow hedges | (407) | 30,405 | |||||||||
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges | 440 | 777 | |||||||||
Foreign currency translation adjustment | 151 | (758) | |||||||||
Other comprehensive income | 184 | 30,424 | |||||||||
Ending balance | $ 26,942 | $ 26,758 | 26,942 | 26,758 | $ (3,666) | ||||||
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 | 611 | 1,200 | |||||||||
Income tax (benefit) | (171) | (423) | |||||||||
Amounts reclassified from accumulated other comprehensive (loss), net of tax | $ 440 | $ 777 |
Segment and Geographic Inform63
Segment and Geographic Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jul. 12, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||||
Operating and Capital Leases Income Statement Lease Revenue | $ 313,856 | $ 302,120 | $ 281,939 | $ 265,602 | $ 259,547 | $ 247,789 | $ 158,333 | $ 163,025 | $ 1,163,517 | $ 828,694 | $ 707,839 | |
Number of Reportable Segments | segment | 2 | |||||||||||
Gross Profit | 1,095 | 1,369 | 1,328 | 392 | 386 | 232 | 0 | 0 | $ 4,184 | 618 | 0 | |
Equipment trading expenses | 33,235 | 15,800 | 0 | |||||||||
Net (gain) loss on sale of leasing equipment | (10,749) | $ (10,263) | $ (9,639) | $ (5,161) | 4,261 | $ 12,319 | $ 1,930 | $ 1,837 | (35,812) | 20,347 | (2,013) | |
Depreciation and amortization expense | 500,720 | 392,592 | 300,470 | |||||||||
Interest and debt expense | 282,347 | 184,014 | 140,644 | |||||||||
Realized loss on derivative instruments, net | 900 | 3,438 | 5,496 | |||||||||
Income before income taxes | 265,828 | (10,097) | 135,127 | |||||||||
Equipment held for sale | 43,195 | 99,863 | 43,195 | 99,863 | 0 | |||||||
Goodwill at the end of the period | 236,665 | 236,665 | 236,665 | 236,665 | 0 | $ 236,665 | ||||||
Total assets at the end of the period | 9,577,625 | 8,713,571 | 9,577,625 | 8,713,571 | 4,658,997 | |||||||
Purchases of leasing equipment and investments in finance leases | 1,562,863 | 629,332 | 398,799 | |||||||||
Unrealized (gain) loss on derivative instruments, net | (1,397) | (4,405) | 2,240 | |||||||||
Write-off of debt costs | 6,973 | 141 | 1,170 | |||||||||
Costs and Expenses | 657,075 | 632,686 | 428,374 | |||||||||
Equipment leasing | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating and Capital Leases Income Statement Lease Revenue | 1,160,196 | 827,111 | 707,839 | |||||||||
Gross Profit | 0 | 0 | ||||||||||
Net (gain) loss on sale of leasing equipment | (35,812) | 20,347 | (2,013) | |||||||||
Depreciation and amortization expense | 500,099 | 392,250 | 300,470 | |||||||||
Interest and debt expense | 280,909 | 183,377 | 140,644 | |||||||||
Realized loss on derivative instruments, net | 900 | 3,438 | 5,496 | |||||||||
Income before income taxes | 262,574 | (6,302) | 135,127 | |||||||||
Equipment held for sale | 31,534 | 81,804 | 31,534 | 81,804 | 0 | |||||||
Goodwill at the end of the period | 220,864 | 220,864 | 220,864 | 220,864 | 0 | |||||||
Total assets at the end of the period | 9,534,330 | 8,660,786 | 9,534,330 | 8,660,786 | 4,658,997 | |||||||
Purchases of leasing equipment and investments in finance leases | 1,562,863 | 629,176 | 398,799 | |||||||||
Equipment trading | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating and Capital Leases Income Statement Lease Revenue | 3,321 | 1,583 | 0 | |||||||||
Gross Profit | 4,184 | 618 | ||||||||||
Net (gain) loss on sale of leasing equipment | 0 | 0 | 0 | |||||||||
Depreciation and amortization expense | 621 | 342 | 0 | |||||||||
Interest and debt expense | 1,438 | 637 | 0 | |||||||||
Realized loss on derivative instruments, net | 0 | 0 | 0 | |||||||||
Income before income taxes | 3,254 | (3,795) | 0 | |||||||||
Equipment held for sale | 11,661 | 18,059 | 11,661 | 18,059 | 0 | |||||||
Goodwill at the end of the period | 15,801 | 15,801 | 15,801 | 15,801 | 0 | |||||||
Total assets at the end of the period | $ 43,295 | $ 52,785 | 43,295 | 52,785 | 0 | |||||||
Purchases of leasing equipment and investments in finance leases | 0 | 156 | 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 | $ (1,397) | $ (4,405) | $ 2,240 |
Segment and Geographic Inform64
Segment and Geographic Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Equipment trading revenues | $ 37,419 | $ 16,418 | $ 0 | ||||||||
Operating and Capital Leases Income Statement Lease Revenue | $ 313,856 | $ 302,120 | $ 281,939 | $ 265,602 | $ 259,547 | $ 247,789 | $ 158,333 | $ 163,025 | 1,163,517 | 828,694 | 707,839 |
Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Equipment trading revenues | 17,342 | 7,410 | |||||||||
Operating and Capital Leases Income Statement Lease Revenue | 491,996 | 397,500 | 403,910 | ||||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Equipment trading revenues | 8,383 | 4,439 | |||||||||
Operating and Capital Leases Income Statement Lease Revenue | 518,598 | 334,118 | 226,905 | ||||||||
BERMUDA | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Equipment trading revenues | 22 | 0 | |||||||||
Operating and Capital Leases Income Statement Lease Revenue | 1,745 | 464 | 120 | ||||||||
Americas [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Equipment trading revenues | 7,747 | 3,082 | |||||||||
Operating and Capital Leases Income Statement Lease Revenue | 111,558 | 58,945 | 41,566 | ||||||||
Other international | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Equipment trading revenues | 3,925 | 1,487 | |||||||||
Operating and Capital Leases Income Statement Lease Revenue | $ 39,620 | $ 37,667 | $ 35,338 |
Income Taxes Components of Curr
Income Taxes Components of Current and Deferred (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Foreign [Line Items] | |||
Current foreign tax expense | $ 875 | $ 761 | $ 695 |
Deferred foreign tax expense | (94,149) | (809) | 3,353 |
Total foreign income taxes | (93,274) | (48) | 4,048 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 260,252 | (5,833) | 131,717 |
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, Noncontrolling Interest | (4,011) | 0 | 0 |
UNITED STATES | |||
Foreign [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 125,799 | (7,451) | 10,985 |
Current Income Tax Expense (Benefit) | 36 | (80) | 487 |
Deferred Federal Income Tax Expense (Benefit) | (94,079) | (709) | 3,327 |
Foreign | |||
Foreign [Line Items] | |||
Current foreign tax expense | 839 | 841 | 208 |
Deferred foreign tax expense | (70) | (100) | 26 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 138,464 | $ 1,618 | $ 120,732 |
Income Taxes Schedule of Effect
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Tax Rate [Line Items] | |||
Income Tax Reconciliation, Permanent Differences and Other Adjustments | 0.04% | (1.58%) | 0.05% |
Income Tax Reconciliation, Discrete Items | 0.26% | (24.97%) | (0.22%) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | (53.55%) | 0.00% | 0.00% |
Effective income tax rate | (35.84%) | 0.82% | 3.07% |
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 | 17.10% | 41.68% | 3.01% |
Uncertain tax position [Member] | |||
Effective Tax Rate [Line Items] | |||
Effective income tax rate | 0.21% | (10.16%) | 0.00% |
Foreign Tax Authority [Member] | |||
Effective Tax Rate [Line Items] | |||
Foreign income taxed at other than the statutory rate | 0.10% | (4.15%) | 0.23% |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Derivative Instruments | $ 1,529 | $ 5,514 |
Deferred income tax assets: | ||
Net operating loss carryforwards | 197,089 | 273,055 |
Passive activity loss carryforwards | 7 | 12 |
Allowance for losses | 622 | 4,250 |
Deferred income | 261 | 35 |
Accrued liabilities and other payables | 631 | 2,233 |
Total gross deferred tax assets | 200,139 | 285,099 |
Less: Valuation allowance | 0 | (286) |
Net deferred tax assets | 200,139 | 284,813 |
Deferred income tax liabilities: | ||
Accelerated depreciation | 382,961 | 516,472 |
Derivative instruments | 790 | 287 |
Deferred income | 27,347 | 71,359 |
Deferred partnership income (TCI) | 1,134 | 1,765 |
Other | 1,205 | 9,607 |
Total gross deferred tax liability | 415,578 | 602,129 |
Deferred Tax Assets, Net | 215,439 | 317,316 |
Deferred Tax Liabilities, Goodwill and Intangible Assets | $ 2,141 | $ 2,639 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||
Tax Cuts And Jobs Act Of 2017, Income tax benefit | $ (139,400) | |
Income tax valuation allowance | 0 | $ 286 |
Unremitted earnings | 47,000 | |
Taxes withhelld on unremitted earnings | 14,000 | |
Unrecognized tax benefits with no impact on after-tax income | 6,900 | |
Decrease in unrecognized tax benefits that is reasonably possible in the next twelve months | 1,400 | |
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 | $ 926,700 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Unrecognized Tax Benefits [Roll Forward] | ||
Beginning balance at January 1 | $ 7,777 | $ 7,345 |
Increase related to current year’s tax position | 1,315 | 1,233 |
Lapse of statute of limitations | (898) | (791) |
Foreign exchange adjustment, increase | 56 | |
Foreign exchange adjustment, decrease | (10) | |
Ending balance at December 31 | $ 8,250 | $ 7,777 |
Income Taxes Interest and Penal
Income Taxes Interest and Penalty Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Interest expense (benefit) | $ 144 | $ 121 | $ 15 |
Penalty expense | $ (64) | $ (29) | $ (98) |
Income Taxes Components of Inco
Income Taxes Components of Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | |||
Corporate income taxes payable | $ 56 | $ 32 | |
Unrecognized tax benefits | 8,250 | 7,777 | $ 7,345 |
Interest accrued | 824 | 680 | |
Penalties | 561 | 625 | |
Income taxes payable | $ 9,691 | $ 9,114 |
Savings Plan (Details)
Savings Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum contribution match | $ 6,000 | ||
Defined Contribution Plan, Cost Recognized | $ 1,000,000 | $ 700,000 | $ 600,000 |
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% |
Rental Income under Operating73
Rental Income under Operating Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leased Assets [Line Items] | |
2,018 | $ 4,178 |
Equipment | |
Operating Leased Assets [Line Items] | |
2,018 | 838,022 |
2,019 | 675,678 |
2,020 | 553,676 |
2,021 | 437,027 |
2,022 | 325,915 |
2023 and thereafter | 488,061 |
Total | $ 3,318,379 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 4,178 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 2,034 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 1,164 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 627 | ||
Operating Leases, Future Minimum Payments, Due in Five Years and Thereafter | 272 | ||
Operating Leases, Future Minimum Payments Due | 8,275 | ||
Guarantee obligations | |||
Operating Leases, Rent Expense | $ 2,400 | $ 2,300 | $ 1,400 |
Commitments and Contingencies75
Commitments and Contingencies (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Bonus Accrual [Roll Forward] | |||
Accrued Bonuses | $ 25,175 | $ 19,128 | |
Accrued Bonuses | 0 | 25,175 | $ 19,128 |
Operating Leases, Rent Expense | 2,400 | 2,300 | 1,400 |
Restructuring Reserve [Roll Forward] | |||
Purchase commitment payable in 2016 | 276,000 | ||
Accruals [Member] | |||
Bonus Accrual [Roll Forward] | |||
Bonus Expense | 2,853 | 7,384 | |
liability acquired [Member] | |||
Bonus Accrual [Roll Forward] | |||
Bonus Liability Acquired | 4,082 | ||
Payments [Member] | |||
Bonus Accrual [Roll Forward] | |||
Payments | (28,028) | (5,419) | |
Employee Severance | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 20,718 | 0 | |
Accrual | 6,023 | 33,991 | |
Payments | (17,064) | (13,273) | |
Ending balance | $ 9,677 | $ 20,718 | $ 0 |
Selected Quarterly Financial 76
Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Selected Quarterly Financial Data [Line Items] | |||||||||||
Operating and Capital Leases Income Statement Lease Revenue | $ 313,856 | $ 302,120 | $ 281,939 | $ 265,602 | $ 259,547 | $ 247,789 | $ 158,333 | $ 163,025 | $ 1,163,517 | $ 828,694 | $ 707,839 |
Gross Profit | 1,095 | 1,369 | 1,328 | 392 | 386 | 232 | 0 | 0 | 4,184 | 618 | 0 |
Net gain (loss) on sale of leasing equipment | 10,749 | 10,263 | 9,639 | 5,161 | (4,261) | (12,319) | (1,930) | (1,837) | 35,812 | (20,347) | 2,013 |
Non-designated interest rate swaps | (1,397) | (4,405) | 2,240 | ||||||||
Net (loss) income | $ 207,160 | $ 57,156 | $ 45,671 | $ 34,611 | $ 22,778 | $ (51,211) | $ 6,174 | $ 8,742 | $ 344,598 | $ (13,517) | $ 111,089 |
Net income (loss) per common share—Basic | $ 2.59 | $ 0.76 | $ 0.62 | $ 0.47 | $ 0.31 | $ (0.74) | $ 0.15 | $ 0.22 | $ 4.55 | $ (0.24) | $ 2.75 |
Net income (loss) per common share—Diluted | $ 2.57 | $ 0.75 | $ 0.62 | $ 0.47 | $ 0.31 | $ (0.74) | $ 0.15 | $ 0.22 | $ 4.52 | $ (0.24) | $ 2.71 |
Related Party (Details)
Related Party (Details) - MCS [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Direct Financing Lease Receivable [Member] | ||
Related Party Transaction [Line Items] | ||
Proceeds from (Repayments of) Related Party Debt | $ 1,897 | $ 1,670 |
Loans and Leases Receivable, Related Parties | 10,648 | 10,636 |
Loans Receivable [Member] | ||
Related Party Transaction [Line Items] | ||
Proceeds from (Repayments of) Related Party Debt | 128 | 45 |
Loans and Leases Receivable, Related Parties | $ 0 | $ 126 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 21, 2018 | Dec. 31, 2017 | Mar. 09, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | ||||
Net Notional Amount of Interest Rate Swaps | $ 400,000 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividend approved and declared (in dollars per share) | $ 0.45 | |||
Asset-backed warehouse facilities | ||||
Subsequent Event [Line Items] | ||||
Debt and Capital Lease Obligations | $ 110,000 | $ 660,000 |
Schedule I Condensed Balance Sh
Schedule I Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Financial Statements, Captions [Line Items] | |||
Assets | $ 9,577,625 | $ 8,713,571 | $ 4,658,997 |
Common Stock, Value, Issued | 807 | 744 | |
Liabilities | 7,367,799 | 6,906,834 | |
Additional paid-in capital | 889,168 | 690,418 | |
Accumulated earnings | 1,159,367 | 945,313 | |
Accumulated other comprehensive income | 26,942 | 26,758 | |
Total shareholders' equity | 2,076,284 | 1,663,233 | |
Liabilities and Equity | 9,577,625 | 8,713,571 | |
Triton International Limited Holdings [Domain] | |||
Condensed Financial Statements, Captions [Line Items] | |||
IntercompanyReceivable | 0 | 151 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 2,078,936 | 1,663,879 | |
Assets | 2,078,936 | 1,664,030 | |
Common Stock, Value, Issued | 807 | 744 | |
Accounts Payable, Current | 2,652 | 797 | |
Liabilities | 2,652 | 797 | |
Additional paid-in capital | 889,168 | 690,418 | |
Accumulated earnings | 1,159,367 | 945,313 | |
Accumulated other comprehensive income | 26,942 | 26,758 | |
Total shareholders' equity | 2,076,284 | 1,663,233 | |
Liabilities and Equity | 2,078,936 | 1,664,030 | |
Undesignated Common Stock [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Common Stock, Value, Issued | 0 | 0 | |
Undesignated Common Stock [Member] | Triton International Limited Holdings [Domain] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Common Stock, Value, Issued | $ 0 | $ 0 |
Schedule I Condensed Balance 80
Schedule I Condensed Balance Sheet (Parenthetical) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||
Common Stock, Value, Issued | $ 807 | $ 744 |
Common Stock, Shares, Issued | 80,687,757 | 74,376,025 |
Designated Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 294,000,000 | 294,000,000 |
Undesignated Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common Stock, Value, Issued | $ 0 | $ 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 6,000,000 | 6,000,000 |
Triton International Limited Holdings [Domain] | ||
Class of Stock [Line Items] | ||
Common Stock, Value, Issued | $ 807 | $ 744 |
Triton International Limited Holdings [Domain] | Undesignated Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common Stock, Value, Issued | $ 0 | $ 0 |
Schedule I Condensed Income Sta
Schedule I Condensed Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||
Administrative expenses | $ 87,609 | $ 65,618 | $ 53,435 |
Transaction and other costs | 9,272 | 66,916 | 22,185 |
Operating Income (Loss) | 546,438 | 176,279 | 281,478 |
Other Nonoperating Income (Expense) | 2,637 | 1,076 | (211) |
Income tax (benefit) expense | (93,274) | (48) | 4,048 |
Net Income (Loss) Attributable to Parent | 353,526 | (5,785) | $ 127,669 |
Triton International Limited Holdings [Domain] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | 0 | 0 | |
Administrative expenses | 4,011 | 276 | |
Transaction and other costs | 0 | 10,706 | |
Operating Expenses | (4,011) | (10,982) | |
Income (Loss) from Subsidiaries, before Tax | 348,609 | (2,535) | |
Other Nonoperating Income (Expense) | 348,609 | (2,535) | |
Amounts reclassified from accumulated other comprehensive (loss) before income tax | 344,598 | (13,517) | |
Income tax (benefit) expense | 0 | 0 | |
Net Income (Loss) Attributable to Parent | $ 344,598 | $ (13,517) |
Schedule I Condensed Statement
Schedule I Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net Income (Loss) Attributable to Parent | $ 353,526 | $ (5,785) | $ 127,669 | |
Share based compensation | 5,641 | 5,399 | 12,048 | |
Other assets | 3,799 | 2,194 | (2,814) | |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (1,311,391) | (395,446) | (215,721) | |
Issuance (redemption) of common shares | 192,861 | (7,410) | 0 | |
Payments of Ordinary Dividends, Common Stock | 135,557 | 84,752 | 0 | |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | 523,429 | (32,233) | (242,501) | |
Cash and cash equivalents | 132,031 | 113,198 | 56,689 | $ 65,607 |
Triton International Limited Holdings [Domain] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Income (Loss) Attributable to Parent | 344,598 | (13,517) | ||
Income (Loss) from Subsidiaries, before Tax | 348,609 | (2,535) | ||
Share based compensation | 1,084 | 0 | ||
Other assets | 2,622 | 0 | ||
Noncash Merger Related Costs | (305) | (10,982) | ||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | 0 | 0 | ||
Issuance (redemption) of common shares | 192,931 | 0 | ||
Capital contribution to subsidiaries | (254,240) | 0 | ||
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 197,171 | 77,376 | ||
Payments of Ordinary Dividends, Common Stock | 135,557 | 66,394 | ||
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | 305 | 10,982 | ||
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | 0 | ||
Cash and cash equivalents | $ 0 | $ 0 | $ 0 |
Schedule II Valuation and Qua83
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finance Lease - Allowance for doubtful accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 527 | $ 526 | $ 526 |
Additions | 1 | 0 | |
(Reversals) | (527) | ||
(Write-offs)/ Reversals | 0 | 0 | 0 |
Ending Balance | 0 | 527 | 526 |
Accounts Receivable-Allowance for doubtful accounts: | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | 28,082 | 8,297 | 9,576 |
Additions | 581 | 19,811 | |
(Reversals) | (1,211) | ||
(Write-offs)/ Reversals | (25,661) | (26) | (68) |
Ending Balance | $ 3,002 | $ 28,082 | $ 8,297 |