Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 18, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-37827 | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-1276572 | |
Entity Address, Address Line One | Victoria Place, 5th Floor | |
Entity Address, Address Line Two | 31 Victoria Street | |
Entity Address, City or Town | Hamilton | |
Entity Address, Postal Zip Code | HM 10 | |
Entity Address, Country | BM | |
City Area Code | 441 | |
Local Phone Number | 294-8033 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 72,236,507 | |
Entity Registrant Name | Triton International Ltd | |
Entity Central Index Key | 0001660734 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common shares, $0.01 par value per share | New York Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common shares, $0.01 par value per share | |
Trading Symbol | TRTN | |
Security Exchange Name | NYSE | |
8.50% Series A Cumulative Redeemable Perpetual Preference Shares | New York Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 8.50% Series A Cumulative Redeemable Perpetual Preference Shares | |
Trading Symbol | TRTNpA | |
Security Exchange Name | NYSE | |
8.00% Series B Cumulative Redeemable Perpetual Preference Shares | New York Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 8.00% Series B Cumulative Redeemable Perpetual Preference Shares | |
Trading Symbol | TRTNpB | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Leasing equipment, net of accumulated depreciation of $2,836,132 and $2,533,446 | $ 8,519,730 | $ 8,923,451 |
Net investment in finance leases | 431,619 | 478,065 |
Equipment held for sale | 98,868 | 66,453 |
Revenue earning assets | 9,050,217 | 9,467,969 |
Cash and cash equivalents | 46,840 | 48,950 |
Restricted cash | 111,276 | 110,589 |
Accounts receivable, net of allowances of $1,212 and $1,240 | 245,209 | 264,382 |
Goodwill | 236,665 | 236,665 |
Lease intangibles, net of accumulated amortization of $234,966 and $205,532 | 63,491 | 92,925 |
Other assets | 47,303 | 34,610 |
Fair value of derivative instruments | 882 | 13,923 |
Total assets | 9,801,883 | 10,270,013 |
LIABILITIES AND SHAREHOLDERS' EQUITY: | ||
Equipment purchases payable | 34,922 | 22,392 |
Fair value of derivative instruments | 75,777 | 10,966 |
Accounts payable and other accrued expenses | 106,332 | 99,885 |
Net deferred income tax liability | 291,342 | 282,129 |
Debt, net of unamortized debt costs of $42,790 and $44,889 | 6,985,531 | 7,529,432 |
Total liabilities | 7,493,904 | 7,944,804 |
Shareholders' equity: | ||
Undesignated shares, $0.01 par value, 20,800,000 and 30,000,000 shares authorized, respectively, no shares issued and outstanding | 0 | 0 |
Treasury shares, at cost, 8,442,311 and 1,853,148 shares, respectively | (267,233) | (58,114) |
Additional paid-in capital | 907,022 | 896,811 |
Accumulated earnings | 1,493,765 | 1,349,627 |
Accumulated other comprehensive income (loss) | (56,385) | 14,563 |
Total shareholders' equity | 2,307,979 | 2,203,696 |
Noncontrolling interests | 0 | 121,513 |
Total equity | 2,307,979 | 2,325,209 |
Total liabilities and equity | 9,801,883 | 10,270,013 |
Preferred Class A | ||
Shareholders' equity: | ||
Preferred shares | 86,250 | 0 |
Preferred Class B | ||
Shareholders' equity: | ||
Preferred shares | 143,750 | 0 |
Designated Common Stock | ||
Shareholders' equity: | ||
Common shares, $0.01 par value, 270,000,000 shares authorized, 80,973,339 and 80,843,472 shares issued, respectively | $ 810 | $ 809 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Leasing equipment, accumulated depreciation and allowances | $ 2,836,132 | $ 2,533,446 |
Accounts receivable, allowances | 1,212 | 1,240 |
Finite-Lived Intangible Assets, Accumulated Amortization | 234,966 | 205,532 |
Deferred financing costs | $ 42,790 | $ 44,889 |
Class of Stock [Line Items] | ||
Treasury Stock, Shares (in shares) | 8,442,311 | 1,853,148 |
Designated Common Stock | ||
Class of Stock [Line Items] | ||
Common Shares, Shares Authorized (in shares) | 270,000,000 | 270,000,000 |
Common Shares, Shares Issued (in shares) | 80,973,339 | 80,843,472 |
Undesignated Common Stock | ||
Class of Stock [Line Items] | ||
Common Shares, Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Shares, Shares Authorized (in shares) | 20,800,000 | 30,000,000 |
Preferred Class A | ||
Class of Stock [Line Items] | ||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized (in shares) | 3,450,000 | 0 |
Preferred Stock, Shares Issued (in shares) | 3,450,000 | 0 |
Preferred Stock, Shares Outstanding (in shares) | 3,450,000 | 0 |
Preferred Class B | ||
Class of Stock [Line Items] | ||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized (in shares) | 5,750,000 | 0 |
Preferred Stock, Shares Issued (in shares) | 5,750,000 | 0 |
Preferred Stock, Shares Outstanding (in shares) | 5,750,000 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Leasing revenues: | ||||
Operating leases | $ 326,800 | $ 346,461 | $ 985,592 | $ 981,646 |
Finance leases | 9,868 | 3,617 | 30,501 | 13,300 |
Total leasing revenues | 336,668 | 350,078 | 1,016,093 | 994,946 |
Equipment trading revenues | 25,796 | 25,292 | 66,833 | 56,766 |
Equipment trading expenses | (21,646) | (19,482) | (54,600) | (43,971) |
Trading margin | 4,150 | 5,810 | 12,233 | 12,795 |
Net gain on sale of leasing equipment | 6,196 | 7,055 | 22,184 | 27,378 |
Net gain on sale of building | 0 | 0 | 0 | 20,953 |
Operating expenses: | ||||
Depreciation and amortization | 133,367 | 141,337 | 403,324 | 405,664 |
Direct operating expenses | 20,457 | 11,489 | 55,356 | 32,732 |
Administrative expenses | 18,496 | 19,966 | 56,671 | 60,293 |
Provision (reversal) for doubtful accounts | 126 | 677 | 505 | 551 |
Total operating expenses | 172,446 | 173,469 | 515,856 | 499,240 |
Operating income (loss) | 174,568 | 189,474 | 534,654 | 556,832 |
Other expenses: | ||||
Interest and debt expense | 77,401 | 82,502 | 243,181 | 236,627 |
Realized (gain) loss on derivative instruments, net | (539) | (608) | (1,912) | (1,348) |
Unrealized (gain) loss on derivative instruments, net | 504 | 322 | 2,757 | (975) |
Debt termination expense | 1,870 | 1,348 | 2,428 | 1,851 |
Other (income) expense, net | (116) | 492 | (2,047) | (752) |
Total other expenses | 79,120 | 84,056 | 244,407 | 235,403 |
Income (loss) before income taxes | 95,448 | 105,418 | 290,247 | 321,429 |
Income tax expense (benefit) | 4,845 | 9,789 | 20,737 | 36,182 |
Net income | 90,603 | 95,629 | 269,510 | 285,247 |
Less: income (loss) attributable to noncontrolling interest | 0 | 1,393 | 592 | 5,249 |
Less: dividend on preferred shares | 4,708 | 0 | 7,038 | 0 |
Net income (loss) attributable to common shareholders | $ 85,895 | $ 94,236 | $ 261,880 | $ 279,998 |
Net income per common share—Basic | $ 1.18 | $ 1.18 | $ 3.49 | $ 3.50 |
Net income per common share—Diluted | 1.17 | 1.17 | 3.47 | 3.47 |
Cash dividends paid per common share | $ 0.52 | $ 0.52 | $ 1.56 | $ 1.49 |
Weighted average number of common shares outstanding—Basic | 72,689 | 80,064 | 74,984 | 80,026 |
Dilutive restricted shares | 560 | 664 | 573 | 594 |
Weighted average number of common shares outstanding—Diluted | 73,249 | 80,728 | 75,557 | 80,620 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 90,603 | $ 95,629 | $ 269,510 | $ 285,247 |
Other comprehensive income (loss), net of tax: | ||||
Change in derivative instruments designated as cash flow hedges | (20,784) | 4,159 | (66,624) | 21,623 |
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges | (1,020) | (1,686) | (4,485) | (4,619) |
Cumulative effect for the adoption of ASU 2017-12, net of income tax effect | 0 | 0 | 432 | 0 |
Foreign currency translation adjustment | (139) | (50) | (271) | (136) |
Other comprehensive income (loss), net of tax | (21,943) | 2,423 | (70,948) | 16,868 |
Comprehensive income | 68,660 | 98,052 | 198,562 | 302,115 |
Other comprehensive income attributable to noncontrolling interest | 0 | 1,393 | 592 | 5,249 |
Dividend on preferred shares | 4,708 | 0 | 7,038 | 0 |
Comprehensive income | 63,952 | 96,659 | 190,932 | 296,866 |
Tax (benefit) provision on change in derivative instruments designated as cash flow hedges | (2,146) | 1,087 | (8,103) | 5,791 |
Tax (benefit) provision on reclassification of (gain) loss on derivative instruments designated as cash flow hedges | (510) | (471) | (1,707) | (1,216) |
Tax (benefit) provision on cumulative effect for the adoption of ASU 2017-12 | $ 0 | $ 0 | $ 277 | $ 0 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity Statement - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] |
Beginning balance, shares at Dec. 31, 2017 | 0 | 80,687,757 | 0 | |||||
Beginning balance at Dec. 31, 2017 | $ 2,209,826 | $ 0 | $ 807 | $ 0 | $ 889,168 | $ 1,159,367 | $ 26,942 | $ 133,542 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation, shares | 156,833 | |||||||
Share-based compensation | 2,512 | $ 1 | 2,511 | |||||
Share repurchase to settle shareholder tax obligations, shares | (28,838) | |||||||
Share repurchase to settle shareholder tax obligations | (822) | (822) | ||||||
Net income (loss) | 82,865 | 80,892 | 1,973 | |||||
Other comprehensive income (loss) | 11,079 | 11,079 | ||||||
Distributions to noncontrolling interests | (4,251) | (4,251) | ||||||
Common shares dividend declared | (36,440) | (36,440) | ||||||
Ending balance, shares at Mar. 31, 2018 | 0 | 80,815,752 | 0 | |||||
Ending balance at Mar. 31, 2018 | 2,264,769 | $ 0 | $ 808 | $ 0 | 890,857 | 1,206,848 | 34,992 | 131,264 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation, shares | 39,320 | |||||||
Share-based compensation | 3,149 | $ 1 | 3,148 | |||||
Net income (loss) | 106,753 | 104,870 | 1,883 | |||||
Other comprehensive income (loss) | 3,366 | 3,366 | ||||||
Distributions to noncontrolling interests | (3,492) | (3,492) | ||||||
Common shares dividend declared | (42,289) | (42,289) | ||||||
Ending balance, shares at Jun. 30, 2018 | 0 | 80,855,072 | 0 | |||||
Ending balance at Jun. 30, 2018 | 2,332,256 | $ 0 | $ 809 | $ 0 | 894,005 | 1,269,429 | 38,358 | 129,655 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation, shares | 3,920 | |||||||
Share-based compensation | 1,751 | 1,751 | ||||||
Treasury shares acquired, shares | 33,700 | |||||||
Treasury shares acquired | (1,115) | $ (1,115) | ||||||
Share repurchase to settle shareholder tax obligations, shares | (7,804) | |||||||
Share repurchase to settle shareholder tax obligations | (295) | (295) | ||||||
Net income (loss) | 95,629 | 94,236 | 1,393 | |||||
Other comprehensive income (loss) | 2,423 | 2,423 | ||||||
Distributions to noncontrolling interests | (4,381) | (4,381) | ||||||
Common shares dividend declared | (42,118) | (42,118) | ||||||
Ending balance, shares at Sep. 30, 2018 | 0 | 80,851,188 | 33,700 | |||||
Ending balance at Sep. 30, 2018 | 2,384,150 | $ 0 | $ 809 | $ (1,115) | 895,461 | 1,321,547 | 40,781 | 126,667 |
Beginning balance, shares at Dec. 31, 2018 | 0 | 80,843,472 | 1,853,148 | |||||
Beginning balance at Dec. 31, 2018 | 2,325,209 | $ 0 | $ 809 | $ (58,114) | 896,811 | 1,349,627 | 14,563 | 121,513 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of preferred shares, net of offering expenses, shares | 3,450,000 | |||||||
Issuance of preferred shares, net of offering expenses | 83,058 | $ 86,250 | (3,192) | |||||
Share-based compensation, shares | 170,231 | |||||||
Share-based compensation | 1,818 | $ 2 | 1,816 | |||||
Treasury shares acquired, shares | 2,636,534 | |||||||
Treasury shares acquired | (83,293) | $ (83,293) | ||||||
Share repurchase to settle shareholder tax obligations, shares | (31,506) | |||||||
Share repurchase to settle shareholder tax obligations | (978) | (978) | ||||||
Net income (loss) | 92,811 | 92,219 | 592 | |||||
Other comprehensive income (loss) | (16,029) | (432) | (15,597) | |||||
Purchase of noncontrolling interests | (71,000) | (11,707) | (82,707) | |||||
Distributions to noncontrolling interests | (2,078) | (2,078) | ||||||
Common shares dividend declared | (40,923) | (40,923) | ||||||
Ending balance, shares at Mar. 31, 2019 | 3,450,000 | 80,982,197 | 4,489,682 | |||||
Ending balance at Mar. 31, 2019 | 2,288,595 | $ 86,250 | $ 811 | $ (141,407) | 906,164 | 1,400,491 | (1,034) | 37,320 |
Beginning balance, shares at Dec. 31, 2018 | 0 | 80,843,472 | 1,853,148 | |||||
Beginning balance at Dec. 31, 2018 | 2,325,209 | $ 0 | $ 809 | $ (58,114) | 896,811 | 1,349,627 | 14,563 | 121,513 |
Ending balance, shares at Sep. 30, 2019 | 9,200,000 | 80,973,339 | 8,442,311 | |||||
Ending balance at Sep. 30, 2019 | 2,307,979 | $ 230,000 | $ 810 | $ (267,233) | 907,022 | 1,493,765 | (56,385) | 0 |
Beginning balance, shares at Mar. 31, 2019 | 3,450,000 | 80,982,197 | 4,489,682 | |||||
Beginning balance at Mar. 31, 2019 | 2,288,595 | $ 86,250 | $ 811 | $ (141,407) | 906,164 | 1,400,491 | (1,034) | 37,320 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of preferred shares, net of offering expenses, shares | 5,750,000 | |||||||
Issuance of preferred shares, net of offering expenses | 138,732 | $ 143,750 | (5,018) | |||||
Share-based compensation, shares | 41,535 | |||||||
Share-based compensation | 3,653 | 3,653 | ||||||
Treasury shares acquired, shares | 2,347,826 | |||||||
Treasury shares acquired | (73,942) | $ (73,942) | ||||||
Net income (loss) | 86,096 | 86,096 | ||||||
Other comprehensive income (loss) | (33,408) | (33,408) | ||||||
Purchase of noncontrolling interests | (32,177) | (5,143) | (37,320) | |||||
Common shares dividend declared | (39,108) | (39,108) | ||||||
Preferred shares dividend declared | (1,833) | (1,833) | ||||||
Ending balance, shares at Jun. 30, 2019 | 9,200,000 | 81,023,732 | 6,837,508 | |||||
Ending balance at Jun. 30, 2019 | 2,336,608 | $ 230,000 | $ 811 | $ (215,349) | 909,942 | 1,445,646 | (34,442) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation, shares | 92,997 | |||||||
Share-based compensation | 1,767 | $ 1 | 1,766 | |||||
Treasury shares acquired, shares | 1,604,803 | |||||||
Treasury shares acquired | (51,884) | $ (51,884) | ||||||
Share repurchase to settle shareholder tax obligations, shares | (143,390) | |||||||
Share repurchase to settle shareholder tax obligations | (4,688) | $ 2 | (4,686) | |||||
Net income (loss) | 90,603 | 90,603 | ||||||
Other comprehensive income (loss) | (21,943) | (21,943) | ||||||
Common shares dividend declared | (38,064) | (38,064) | ||||||
Preferred shares dividend declared | (4,420) | (4,420) | ||||||
Ending balance, shares at Sep. 30, 2019 | 9,200,000 | 80,973,339 | 8,442,311 | |||||
Ending balance at Sep. 30, 2019 | $ 2,307,979 | $ 230,000 | $ 810 | $ (267,233) | $ 907,022 | $ 1,493,765 | $ (56,385) | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||||
Net income | $ 90,603 | $ 95,629 | $ 269,510 | $ 285,247 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 133,367 | 141,337 | 403,324 | 405,664 |
Amortization of deferred debt cost and other debt related amortization | 9,718 | 10,070 | ||
Lease related amortization | 32,317 | 54,965 | ||
Share-based compensation expense | 1,800 | 1,700 | 7,238 | 7,412 |
Net (gain) loss on sale of leasing equipment | (6,196) | (7,055) | (22,184) | (27,378) |
Net gain on sale of building | 0 | 0 | 0 | (20,953) |
Unrealized (gain) loss on derivative instruments | 504 | 322 | 2,757 | (975) |
Debt termination expense | 1,870 | 1,348 | 2,428 | 1,851 |
Deferred income taxes | 18,885 | 34,636 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | 22,006 | (21,440) | ||
Accounts payable and other accrued expenses | (7,202) | (3,469) | ||
Net equipment sold for resale activity | (1,798) | (6,031) | ||
Cash collections on finance lease receivables, net of income earned | 53,706 | 45,164 | ||
Other assets | (11,198) | (578) | ||
Net cash provided by (used in) operating activities | 779,507 | 764,185 | ||
Cash flows from investing activities: | ||||
Purchases of leasing equipment and investments in finance leases | (10,532) | (463,195) | (160,518) | (1,347,202) |
Proceeds from sale of equipment, net of selling costs | 163,033 | 122,100 | ||
Proceeds from the sale of building | 0 | 27,630 | ||
Other | (245) | (103) | ||
Net cash provided by (used in) investing activities | 2,270 | (1,197,575) | ||
Cash flows from financing activities: | ||||
Issuance of preferred shares, net of underwriting discount and expenses | 221,790 | 0 | ||
Purchases of treasury shares | (209,592) | 0 | ||
Redemption of common shares for withholding taxes | (5,666) | (1,117) | ||
Debt issuance costs | (8,709) | (12,492) | ||
Borrowings under debt facilities | 1,417,200 | 2,118,637 | ||
Payments under debt facilities and capital lease obligations | (1,970,334) | (1,563,947) | ||
Dividends paid on preferred and common shares | (122,772) | (119,280) | ||
Distributions to noncontrolling interests | (2,078) | (12,123) | ||
Purchase of noncontrolling interests | (103,039) | 0 | ||
Net cash provided by (used in) financing activities | (783,200) | 409,678 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,423) | (23,712) | ||
Cash, cash equivalents and restricted cash, beginning of period | 159,539 | 226,171 | ||
Cash, cash equivalents and restricted cash, end of period | 158,116 | 202,459 | 158,116 | 202,459 |
Supplemental non-cash investing activities: | ||||
Interest paid | 224,033 | 213,577 | ||
Income taxes paid (refunded) | 2,504 | 1,837 | ||
Right-of-use asset for leased property | 7,206 | 0 | ||
Equipment purchases payable | $ 34,922 | $ 127,755 | $ 34,922 | $ 127,755 |
Description of the Business
Description of the Business | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business, Basis of Presentation and Recently Adopted Accounting Pronouncements [Text Block] | Description of the Business and Significant Accounting Policies Description of the Business 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 the Company'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 equipment leasing fleet as well as containers specifically acquired for resale from third parties. The Company's registered office is located in Bermuda. Basis of Presentation The unaudited consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all information and footnotes required by GAAP for complete financial statements. The interim consolidated balance sheet as of September 30, 2019 ; the consolidated statements of operations, the consolidated statements of comprehensive income, the consolidated statements of shareholders' equity for the three and nine months ended September 30, 2019 and 2018 , and the consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018 are unaudited. The consolidated balance sheet as of December 31, 2018 , included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by GAAP. The unaudited interim financial statements have been prepared on a basis consistent with the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to state fairly the Company’s financial position, results of operations, comprehensive income, shareholders' equity, and cash flows for the periods presented. The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The consolidated results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2019 or for any other future annual or interim period. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K which was filed with the SEC on February 19, 2019 . The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain changes in presentation have been made to conform the prior period presentation to current period reporting. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, 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, including residual values and depreciable lives, values of assets held for sale and other long lived assets, provision for income tax, allowance for doubtful accounts, share-based compensation, goodwill and intangible assets. Actual results could differ from those estimates. Concentration of Credit Risk The Company's equipment leases 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 two largest customers, CMA CGM S.A. and Mediterranean Shipping Company S.A. , accounted for 21% and 14% , respectively, of the Company's lease billings during the nine months ended September 30, 2019 . Accounting Policy Updates The Company adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) on January 1, 2019 . The Company evaluates whether leases are classified as operating or financing based on certain assumptions that require judgment, such as the asset's fair value, the asset's estimated residual value, the interest rate implicit in the lease, and the asset's economic useful life. For operating leases, the Company records a lease liability based on the present value of the remaining minimum rental payments and corresponding Right-of-Use ("ROU") asset. The Company uses its estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. Lease incentives are recognized for periods of reduced rent or for larger than usual rent escalations over the term of the lease. The benefit of a rent-free period and the cost of future rent escalations are recognized on a straight-line basis over the term of the lease. The Company elected the short-term lease recognition exemption whereby a lease liability and corresponding ROU asset will not be recognized when leases, at the commencement date, have a lease term of 12 months or less. Equipment under capital lease obligations are classified as revenue earning assets and the related depreciation is recorded on the assets. Debt related to capital lease obligations is included in the Company’s debt obligations. New Accounting Pronouncements Recently Adopted Accounting Standards Updates Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) and subsequently issued amendments that replaced existing lease accounting guidance. The accounting standard requires lessees to recognize a lease liability and corresponding right-of-use asset on their balance sheets. The accounting that will be applied by lessors under ASC 842 is largely unchanged from previous GAAP. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and ASC 606, Revenue from Contracts with Customers. The Company adopted the standard on January 1, 2019 , through a cumulative-effect adjustment. Additionally, the Company elected the “package of practical expedients,” which provides: (1) An entity need not reassess whether any expired or existing contracts are or contain leases; (2) An entity need not reassess the lease classification for any expired or existing leases; and (3) An entity need not reassess initial direct costs for any existing leases. Furthermore, the Company elected the optional transition method and continued to apply the guidance in ASC 840, including its disclosure requirements, in the comparative prior year periods. At adoption, the Company recognized a lease liability of $10.5 million based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases and corresponding ROU asset of $8.9 million . The Company assessed the requirements from both a lessee and lessor perspective and concluded the adoption of this standard did not have a significant impact on the consolidated financial statements. As a result of this adoption, the Company reclassified $45.2 million of cash collections on finance lease receivables, net of income earned, from investing activities to operating activities on its consolidated statement of cash flows for the nine months ended September 30, 2018 . Targeted Improvements to Accounting for Hedging Activities. In August 2017, FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815). ASU 2017-12 changes the recognition and presentation requirements of hedge accounting, including: eliminating the requirement to separately measure and report hedge ineffectiveness; and presenting all items that affect earnings in the same income statement line item as the hedged item. Subsequent amendments permit the use of the Overnight Index Swap ("OIS") rate based on the Secured Overnight Financing Rate ("SOFR") as a U.S. benchmark interest rate for hedge accounting purposes under ASC 815, in addition to the currently permissible benchmark interest rates. This will provide the Company the ability to utilize the OIS rate based on SOFR as the benchmark interest rate on certain hedges of interest rate risk. The Company adopted the standard on January 1, 2019 , and applied the modified retrospective approach. The Company has evaluated the impact of this ASU and concluded the adoption of this standard did not have a significant impact on the consolidated financial statements. Recently Issued Accounting Standards Updates Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) and subsequently issued amendments. The guidance affects the Company's net investments in financing leases and 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. The Company plans to adopt this standard on January 1, 2020. 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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 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): September 30, 2019 December 31, 2018 Liabilities Total debt - carrying value (1) $ 7,042,788 $ 7,595,922 Total debt - fair value $ 7,127,787 $ 7,559,063 (1) Excludes unamortized debt costs of $42.8 million and $44.9 million , purchase price debt adjustments of $10.1 million and $16.3 million , and unamortized debt discounts of $4.4 million and $5.3 million as of September 30, 2019 and December 31, 2018 , respectively. Fair Value of Equipment Held for Sale The Company’s fair value of equipment held for sale 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 on sale of leasing equipment through the periods summarized below (in thousands): September 30, 2019 December 31, 2018 Assets Equipment held for sale - assets at fair value (1) $ 10,781 $ 5,750 Cumulative impairment charges (2) $ (2,644 ) $ (1,846 ) (1) Represents the fair value of containers included in equipment held for sale in the consolidated balance sheets that have been impaired to write down the carrying value of the containers to their estimated fair value less costs 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. The Company recognized net impairment charges of $1.4 million and $4.1 million for the three and nine months ended September 30, 2019 , respectively and net impairment charges of $1.3 million and $2.7 million for the three and nine months ended September 30, 2018 , respectively. 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, net investment in 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. For information on the fair value of derivative instruments, please refer to Note 8 - “Derivative Instruments” in the Notes to the Unaudited Consolidated Financial Statements. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of above market lease intangibles. The following table summarizes the intangible assets amortization as of September 30, 2019 (in thousands): Years ending December 31, Total intangible assets 2019 $ 7,334 2020 22,491 2021 16,549 2022 10,497 2023 4,657 2024 and thereafter 1,963 Total $ 63,491 Amortization expense related to intangible assets was $8.8 million and $15.5 million for the three months ended September 30, 2019 and 2018 , respectively, and $30.2 million and $49.3 million for the nine months ended September 30, 2019 , and 2018 , respectively. |
Other Equity Matters
Other Equity Matters | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Other Equity Matters | Other Equity Matters Share Repurchase Program On April 25, 2019 , the Company's Board of Directors authorized a new $200.0 million repurchase program for its common shares, replacing the previous repurchase program authorized on August 1, 2018 . Purchases under the repurchase program may be made in the open market or privately negotiated transactions, and may include transactions pursuant to a repurchase plan administered in accordance with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended. Purchases may be made from time to time at the Company’s discretion and the timing and amount of any share repurchases will be determined based on share price, market conditions, legal requirements, and other factors. The repurchase program does not obligate the Company to acquire any particular amount of common shares, and the Company may suspend or discontinue the repurchase program at any time. During the nine months ended September 30, 2019 , the Company repurchased a total of 6,589,163 common shares at an average price per share of $31.70 for a total of $209.1 million under both the current and previous authorizations. As of September 30, 2019 , the Company has a total of $94.8 million remaining under the current authorization. Preferred Shares The Company used the net proceeds from preferred share offerings for general corporate purposes, including the purchase of containers, the repurchase of outstanding common shares, the payment of dividends, and the repayment or repurchase of outstanding indebtedness. Series A In March 2019, the Company completed a public offering of 8.50% Series A Cumulative Redeemable Perpetual Preference Shares ("Series A"), selling 3,450,000 shares and generating gross proceeds of $86.3 million . The estimated costs associated with the offering, inclusive of underwriting discount and other offering expenses, were $3.3 million . At any time on or after March 15, 2024, the Series A may be redeemed at the Company's option. Series B In June 2019, the Company completed a public offering of 8.00% Series B Cumulative Redeemable Perpetual Preference Shares ("Series B"), selling 5,750,000 shares and generating gross proceeds of $143.8 million . The estimated costs associated with the offering, inclusive of underwriting discount and other offering expenses, were $5.0 million . At any time on or after September 15, 2024, the Series B may be redeemed at the Company's option. Dividends Dividends on shares of each Series are cumulative from the date of original issue and will be payable quarterly in arrears on the 15th day of March, June, September and December of each year, when, as and if declared by the Company's Board of Directors. Dividends will be payable out of amounts legally available equal to the stated rate per annum of the $25.00 liquidation preference per share. The Company paid the following quarterly dividends during the nine months ended September 30, 2019 on its issued and outstanding Series A and Series B shares: Series A Series B Record Date Payment Date Aggregate Payment Per Share Payment Aggregate Payment Per Share Payment September 9, 2019 September 16, 2019 $1.8 Million $0.53125 $2.6 Million $0.45 June 10, 2019 June 17, 2019 $1.8 Million $0.53125 n/a n/a As of September 30, 2019 , the Company had cumulative unpaid preferred dividends of $0.8 million . Redemption Provisions Preferred shares may be redeemed at the Company's option, at any time on or after the redemption date for each Series, in whole or in part, out of funds legally available at a redemption price of $25.00 per share plus an amount equal to all accumulated and unpaid dividends thereon to, but not including, the date of redemption, whether or not declared. The Company may also redeem each Series of preferred shares in the event of a Change of Control Triggering Event as defined in the applicable Certificate of Designations (the "Certificate of Designations"). In addition, upon the occurrence of a Change of Control Triggering Event, holders of preferred shares will have the right to convert their preferred shares into common shares in accordance with the applicable Certificate of Designations. Holders of preferred shares generally have no voting rights, except as provided in the following sentence or as provided by Bermuda law. If the Company fails to pay dividends for six or more quarterly periods (whether or not consecutive), holders will be entitled to elect two additional directors to the Board of Directors and the size of the Board of Directors will be increased to accommodate such election. Such right to elect two directors will continue until such time as there are no accumulated and unpaid dividends in arrears. Common Share Dividends The Company paid the following quarterly dividends during the nine months ended September 30, 2019 and 2018 on its issued and outstanding common shares: Record Date Payment Date Aggregate Payment Per Share Payment September 5, 2019 September 26, 2019 $37.6 Million $0.52 June 6, 2019 June 27, 2019 $38.6 Million $0.52 March 12, 2019 March 28, 2019 $40.4 Million $0.52 September 4, 2018 September 25, 2018 $41.6 Million $0.52 June 1, 2018 June 22, 2018 $41.6 Million $0.52 March 12, 2018 March 28, 2018 $36.0 Million $0.45 Accumulated Other Comprehensive Income The following table summarizes the components of accumulated other comprehensive income, net of tax, for the nine months ended September 30, 2019 and 2018 (in thousands): Cash Flow Foreign Total Balance as of December 31, 2018 $ 19,043 $ (4,480 ) $ 14,563 Change in derivative instruments designated as cash flow hedges, net of income tax effect of ($2,144) (1) (14,323 ) — (14,323 ) Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges, net of income tax effect of ($606) (1) (1,749 ) — (1,749 ) Cumulative effect for the adoption of ASU 2017-12, net of income tax effect of $277 432 — 432 Foreign currency translation adjustment — 43 43 Balance as of March 31, 2019 3,403 (4,437 ) (1,034 ) Change in derivative instruments designated as cash flow hedges, net of income tax effect of ($3,813) (1) (31,517 ) — (31,517 ) Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges, net of income tax effect of ($591) (1) (1,716 ) — (1,716 ) Foreign currency translation adjustment — (175 ) (175 ) Balance as of June 30, 2019 (29,830 ) (4,612 ) (34,442 ) Change in derivative instruments designated as cash flow hedges, net of income tax effect of ($2,146) (1) (20,784 ) — (20,784 ) Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges, net of income tax effect of ($510) (1) (1,020 ) — (1,020 ) Foreign currency translation adjustment — (139 ) (139 ) Balance as of September 30, 2019 $ (51,634 ) $ (4,751 ) (56,385 ) Cash Flow Foreign Total Balance as of December 31, 2017 $ 31,215 $ (4,273 ) $ 26,942 Change in derivative instruments designated as cash flow hedges, net of income tax effect of $3,354 (1) 12,459 — 12,459 Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges, net of income tax effect of ($352) (1) (1,472 ) — (1,472 ) Foreign currency translation adjustment — 92 92 Tax reclassification to accumulated earnings for the adoption of ASU 2018-02 (3,029 ) — (3,029 ) Balance as of March 31, 2018 39,173 (4,181 ) 34,992 Change in derivative instruments designated as cash flow hedges, net of income tax effect of $1,350 (1) 5,005 — 5,005 Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges, net of income tax effect of ($393) (1) (1,461 ) — (1,461 ) Foreign currency translation adjustment — (178 ) (178 ) Balance as of June 30, 2018 42,717 (4,359 ) 38,358 Change in derivative instruments designated as cash flow hedges, net of income tax effect of $1,087 (1) 4,159 — 4,159 Reclassification of (gain) loss on derivative instruments designated as cash flow hedges, net of income tax effect of ($471) (1) (1,686 ) — (1,686 ) Foreign currency translation adjustment — (50 ) (50 ) Balance as of September 30, 2018 $ 45,190 $ (4,409 ) $ 40,781 (1) Refer to Note 8 - "Derivative Instruments" for reclassification impact on the Consolidated Statement of Income |
Share Based Compensation
Share Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Share Based Compensation | Share-Based Compensation The Company recognizes share-based compensation expense for share-based payment transactions based on the fair value as of the grant date. The expense is recognized over the employee's requisite service period, which is generally the vesting period of the equity award. The Company recognized share-based compensation expense in administrative expenses of $1.8 million and $7.2 million for the three and nine months ended September 30, 2019 , respectively, and recognized $1.7 million and $7.4 million for the three and nine months ended September 30, 2018 , respectively. Share-based compensation expense includes charges for performance-based shares that are deemed probable to vest. As of September 30, 2019 , the total unrecognized compensation expense related to non-vested restricted shares was approximately $8.9 million , which is expected to be recognized through 2021 . During the nine months ended September 30, 2019 , the Company issued 261,728 time-based and performance-based restricted shares, and canceled 174,896 vested shares to settle payroll taxes on behalf of employees. Additional shares may be accrued and issued based upon the Company's performance measured against selected peers. The Company also issued 43,035 shares to non-employee directors at fair value that vested immediately. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Lessee The Company leases multiple office facilities which are contracted under various cancelable and non-cancelable operating leases, most of which provide extension or early termination options. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants. As of September 30, 2019 , the weighted average implicit rate was 4.17% and the weighted average remaining lease term was 3.5 years . The following table summarizes the components of the Company's leases (in thousands): Financial statement caption September 30, 2019 Balance Sheet Right-of-use asset - operating Other assets $ 7,206 Lease liability - operating Accounts payable and other accrued expenses $ 8,600 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Income Statement Operating lease cost (1) Administrative expenses $ 764 $ 2,265 (1) Includes short-term leases that are immaterial. Cash paid for amounts included in the measurement of lease liabilities under operating cash flows was $0.8 million and $2.4 million for the three and nine months ended September 30, 2019 , respectively. The following represents our future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities as of September 30, 2019 (in thousands): Years ending December 31, 2019 $ 759 2020 2,908 2021 2,320 2022 1,974 2023 1,306 2024 and thereafter — Total undiscounted future cash flows related to lease payments $ 9,267 Less: imputed interest 667 Total present value of lease liabilities $ 8,600 Lessor The following table summarizes the components of the net investment in finance leases (in thousands): September 30, December 31, Future minimum lease payment receivable (1) $ 501,320 $ 574,422 Estimated residual receivable (2) 105,112 107,598 Gross finance lease receivables 606,432 682,020 Unearned income (3) (174,813 ) (203,955 ) Net investment in finance leases (4) $ 431,619 $ 478,065 (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 September 30, 2019 and December 31, 2018 . (2) The Company's leases generally include a bargain purchase option and therefore, the Company has immaterial residual value risk for assets that are subject to direct finance leases. (3) 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 September 30, 2019 and December 31, 2018 . (4) As of September 30, 2019 , three major customers represented 53% , 24% and 11% of the Company's finance lease portfolio. As of December 31, 2018 , three major customers represented 50% , 24% and 13% of the Company's finance lease portfolio. No other customer represented more than 10% of the Company's finance lease portfolio in each of those periods. Contractual maturities of the Company’s gross finance lease receivables subsequent to September 30, 2019 are as follows (in thousands): Years ending December 31, 2019 $ 28,705 2020 120,707 2021 85,912 2022 79,170 2023 60,873 2024 and thereafter 231,065 Total $ 606,432 The Company considers an account past due when a payment has not been received in accordance with the terms of the related lease agreement and 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 of the equipment. As of September 30, 2019 , the Company does not have an allowance on its gross finance lease receivables. The Company evaluates potential losses in its finance lease portfolio by regularly reviewing the specific receivables in the portfolio and analyzing loss experience. |
Leases | Leases Lessee The Company leases multiple office facilities which are contracted under various cancelable and non-cancelable operating leases, most of which provide extension or early termination options. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants. As of September 30, 2019 , the weighted average implicit rate was 4.17% and the weighted average remaining lease term was 3.5 years . The following table summarizes the components of the Company's leases (in thousands): Financial statement caption September 30, 2019 Balance Sheet Right-of-use asset - operating Other assets $ 7,206 Lease liability - operating Accounts payable and other accrued expenses $ 8,600 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Income Statement Operating lease cost (1) Administrative expenses $ 764 $ 2,265 (1) Includes short-term leases that are immaterial. Cash paid for amounts included in the measurement of lease liabilities under operating cash flows was $0.8 million and $2.4 million for the three and nine months ended September 30, 2019 , respectively. The following represents our future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities as of September 30, 2019 (in thousands): Years ending December 31, 2019 $ 759 2020 2,908 2021 2,320 2022 1,974 2023 1,306 2024 and thereafter — Total undiscounted future cash flows related to lease payments $ 9,267 Less: imputed interest 667 Total present value of lease liabilities $ 8,600 Lessor The following table summarizes the components of the net investment in finance leases (in thousands): September 30, December 31, Future minimum lease payment receivable (1) $ 501,320 $ 574,422 Estimated residual receivable (2) 105,112 107,598 Gross finance lease receivables 606,432 682,020 Unearned income (3) (174,813 ) (203,955 ) Net investment in finance leases (4) $ 431,619 $ 478,065 (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 September 30, 2019 and December 31, 2018 . (2) The Company's leases generally include a bargain purchase option and therefore, the Company has immaterial residual value risk for assets that are subject to direct finance leases. (3) 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 September 30, 2019 and December 31, 2018 . (4) As of September 30, 2019 , three major customers represented 53% , 24% and 11% of the Company's finance lease portfolio. As of December 31, 2018 , three major customers represented 50% , 24% and 13% of the Company's finance lease portfolio. No other customer represented more than 10% of the Company's finance lease portfolio in each of those periods. Contractual maturities of the Company’s gross finance lease receivables subsequent to September 30, 2019 are as follows (in thousands): Years ending December 31, 2019 $ 28,705 2020 120,707 2021 85,912 2022 79,170 2023 60,873 2024 and thereafter 231,065 Total $ 606,432 The Company considers an account past due when a payment has not been received in accordance with the terms of the related lease agreement and 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 of the equipment. As of September 30, 2019 , the Company does not have an allowance on its gross finance lease receivables. The Company evaluates potential losses in its finance lease portfolio by regularly reviewing the specific receivables in the portfolio and analyzing loss experience. |
Leases | Leases Lessee The Company leases multiple office facilities which are contracted under various cancelable and non-cancelable operating leases, most of which provide extension or early termination options. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants. As of September 30, 2019 , the weighted average implicit rate was 4.17% and the weighted average remaining lease term was 3.5 years . The following table summarizes the components of the Company's leases (in thousands): Financial statement caption September 30, 2019 Balance Sheet Right-of-use asset - operating Other assets $ 7,206 Lease liability - operating Accounts payable and other accrued expenses $ 8,600 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Income Statement Operating lease cost (1) Administrative expenses $ 764 $ 2,265 (1) Includes short-term leases that are immaterial. Cash paid for amounts included in the measurement of lease liabilities under operating cash flows was $0.8 million and $2.4 million for the three and nine months ended September 30, 2019 , respectively. The following represents our future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities as of September 30, 2019 (in thousands): Years ending December 31, 2019 $ 759 2020 2,908 2021 2,320 2022 1,974 2023 1,306 2024 and thereafter — Total undiscounted future cash flows related to lease payments $ 9,267 Less: imputed interest 667 Total present value of lease liabilities $ 8,600 Lessor The following table summarizes the components of the net investment in finance leases (in thousands): September 30, December 31, Future minimum lease payment receivable (1) $ 501,320 $ 574,422 Estimated residual receivable (2) 105,112 107,598 Gross finance lease receivables 606,432 682,020 Unearned income (3) (174,813 ) (203,955 ) Net investment in finance leases (4) $ 431,619 $ 478,065 (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 September 30, 2019 and December 31, 2018 . (2) The Company's leases generally include a bargain purchase option and therefore, the Company has immaterial residual value risk for assets that are subject to direct finance leases. (3) 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 September 30, 2019 and December 31, 2018 . (4) As of September 30, 2019 , three major customers represented 53% , 24% and 11% of the Company's finance lease portfolio. As of December 31, 2018 , three major customers represented 50% , 24% and 13% of the Company's finance lease portfolio. No other customer represented more than 10% of the Company's finance lease portfolio in each of those periods. Contractual maturities of the Company’s gross finance lease receivables subsequent to September 30, 2019 are as follows (in thousands): Years ending December 31, 2019 $ 28,705 2020 120,707 2021 85,912 2022 79,170 2023 60,873 2024 and thereafter 231,065 Total $ 606,432 The Company considers an account past due when a payment has not been received in accordance with the terms of the related lease agreement and 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 of the equipment. As of September 30, 2019 , the Company does not have an allowance on its gross finance lease receivables. The Company evaluates potential losses in its finance lease portfolio by regularly reviewing the specific receivables in the portfolio and analyzing loss experience. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The table below summarizes the Company's key terms and carrying value of debt (in thousands): Contractual Weighted Avg Interest Rate (1) Maturity Range (1) September 30, 2019 December 31, 2018 From To Institutional notes 4.65% Apr 2020 Jun 2029 $ 1,965,414 $ 2,198,200 Asset-backed securitization term notes 3.76% May 2022 Jun 2028 2,815,523 3,063,821 Term loan facilities 3.58% Apr 2022 Nov 2023 1,227,875 1,543,375 Asset-backed securitization warehouse 3.79% Dec 2025 Dec 2025 410,000 340,000 Revolving credit facilities 3.61% Sep 2023 Jul 2024 573,000 375,000 Capital lease obligations 4.74% Jan 2024 Feb 2024 50,976 75,526 Total debt outstanding 7,042,788 7,595,922 Unamortized debt costs (42,790 ) (44,889 ) Unamortized purchase price adjustments (10,111 ) (16,308 ) Unamortized debt premiums & discounts (4,356 ) (5,293 ) Debt, net of unamortized debt costs $ 6,985,531 $ 7,529,432 (1) Data as of September 30, 2019 . 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 September 30, 2019 and December 31, 2018 , the Company was in compliance with all financial covenants in accordance with the terms of its debt agreements. The Company 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. The following table summarizes the Company's outstanding fixed and floating rate debt as of September 30, 2019 (in thousands): Balance Outstanding Contractual Weighted Avg Interest Rate Maturity Range Weighted Avg Remaining Term From To Excluding impact of derivative instruments: Fixed-rate debt $4,097,881 4.23% Apr 2020 Jun 2029 3.6 years Floating-rate debt $2,944,907 3.63% Apr 2022 Dec 2025 3.9 years Including impact of derivative instruments: Fixed-rate debt $4,097,881 4.23% Hedged floating-rate debt 1,863,565 3.78% Total fixed and hedged debt 5,961,446 4.09% Unhedged floating-rate debt 1,081,342 3.63% Total $7,042,788 4.01% The Company recorded debt termination expense of $1.9 million and $2.4 million for the three and nine months ended September 30, 2019 , respectively, and $1.3 million and $1.9 million for the three and nine months ended September 30, 2018 , respectively. On February 8, 2019 , the Company increased its borrowing capacity on an Asset-Backed Securitization Warehouse facility by $300.0 million to $800.0 million . On May 16, 2019, the Company amended an existing $1,125.0 million revolving credit facility which reduced interest rates to LIBOR plus 1.50% and extended the maturity date to May 16, 2024. On May 31, 2019, the Company extinguished a term loan and paid the outstanding balance of $210.3 million . On July 8, 2019, the Company entered into a new $325.0 million revolving credit facility with an interest rate of one-month LIBOR plus 1.75% . The facility is available on a revolving basis through July 8, 2021, after which it will convert to a term loan with a maturity date of July 8, 2024. On August 2, 2019, the Company extinguished an asset-backed warehouse facility which had no outstanding balance. The Company also amended a term loan agreement which increased its borrowings by $39.2 million to $500.0 million , decreased its interest rate to one-month LIBOR plus 1.65% , and extended the maturity date to August 20, 2024. 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. 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 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 five or more years. These facilities provide for an advance rate against the net book values of designated eligible equipment. 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 terms of each facility. 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. Asset-Backed Securitization Warehouse Facility Under the Company’s asset-backed warehouse facility, indirect wholly-owned subsidiaries of the Company issue asset-backed notes. The asset-backed warehouse facility is 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 asset-backed warehouse facility has a borrowing capacity of $800.0 million that is available on a revolving basis until December 13, 2021, paying interest at LIBOR plus 1.75% , after which any borrowings will convert to term notes with a maturity date of December 15, 2025, paying interest at LIBOR plus 2.85% . During the revolving period, the borrowing capacity under this facility is determined by applying an advance rate against the net book values of designated eligible equipment. The net book values for purposes of calculating eligible equipment are 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 months of interest expense. Revolving Credit Facilities The revolving credit facilities have a maximum borrowing capacity of $1,560.0 million . These facilities provide for an advance rate against the net book values of designated eligible equipment. 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 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Interest Rate Hedging The Company enters into derivative 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. Interest rate swaps 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 Company also utilizes interest rate cap agreements to manage interest rate risk exposure. Interest rate cap agreements place a ceiling on the borrower's exposure to rising interest rates. The counterparties to these agreements are highly rated financial institutions. In the unlikely event that the counterparties fail to meet the terms of these 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 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 agreements. As of September 30, 2019 , the Company had interest rate cap and swap agreements in place to fix interest rates on a portion of its borrowings under debt facilities with floating interest rates as summarized below: Derivatives Notional Amount Weighted Average Cap Rate Weighted Average Interest Rate Swap (1) $1,863.6 million 2.21% n/a 4.1 years Interest Rate Cap $200.0 million n/a 5.5% 2.3 years ___________________________________________________ (1) The impact of forward starting swaps with total notional amount of $200.0 million will increase the weighted average remaining term to 4.8 years . The following table summarizes the impact of derivative instruments on the consolidated statements of operations and the consolidated statements of comprehensive income on a pretax basis (in thousands): Three Months Ended Nine Months Ended Derivative Instrument Financial statement caption 2019 2018 2019 2018 Non-designated interest rate swaps Realized (gain) loss on derivative instruments, net $ (539 ) $ (608 ) $ (1,912 ) $ (1,348 ) Non-designated interest rate swaps Unrealized (gain) loss on derivative instruments, net $ 504 $ 322 $ 2,757 $ (975 ) Designated interest rate hedges Other comprehensive (income) loss $ 22,930 $ (5,246 ) $ 74,727 $ (27,414 ) Designated interest rate hedges Interest and debt (income) expense $ (1,530 ) $ (2,157 ) $ (6,192 ) $ (5,835 ) Fair Value of Derivative Instruments The Company has elected to use the income approach to value its interest rate swap and cap agreements, using Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted). The Level 2 inputs for the interest rate swap and cap valuations are 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 Company presents the gross assets and liabilities of its derivative financial instruments on the consolidated balance sheet. Any amounts of cash collateral received or posted related to derivative instruments are included in Other Assets on the consolidated balance sheet and are presented in operating activities of the consolidated statements of cash flows. As of September 30, 2019 , there was cash collateral of $18.7 million related to interest rate swap contracts. The fair value of derivative instruments on the Company's consolidated balance sheets as of September 30, 2019 and December 31, 2018 was as follows (in thousands): Asset Derivatives Liability Derivatives Derivative Instrument September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Interest rate hedges, designated $ 246 $ 10,531 $ 75,777 $ 10,966 Interest rate hedges, non-designated 636 3,392 — — Total derivatives $ 882 $ 13,923 $ 75,777 $ 10,966 |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information 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 following tables summarize segment information and the consolidated totals reported (in thousands): Three Months Ended September 30, 2019 2018 Equipment Equipment Totals Equipment Equipment Totals Total leasing revenues $ 336,088 $ 580 $ 336,668 $ 349,022 $ 1,056 $ 350,078 Trading margin — 4,150 4,150 — 5,810 5,810 Net gain on sale of leasing equipment 6,196 — 6,196 7,055 — 7,055 Depreciation and amortization expense 133,194 173 133,367 141,263 74 141,337 Interest and debt expense 77,058 343 77,401 82,116 386 82,502 Realized (gain) loss on derivative instruments, net (536 ) (3 ) (539 ) (606 ) (2 ) (608 ) Income before income taxes (1) 94,394 3,428 97,822 104,226 2,862 107,088 Purchases of leasing equipment and investments in finance leases (2) $ 10,532 $ — $ 10,532 $ 463,195 $ — $ 463,195 Nine Months Ended September 30, 2019 2018 Equipment Equipment Totals Equipment Equipment Totals Total leasing revenues $ 1,014,055 $ 2,038 $ 1,016,093 $ 991,639 $ 3,307 $ 994,946 Trading margin — 12,233 12,233 — 12,795 12,795 Net gain on sale of leasing equipment 22,184 — 22,184 27,378 — 27,378 Depreciation and amortization expense 402,797 527 403,324 404,927 737 405,664 Interest and debt expense 242,115 1,066 243,181 235,531 1,096 236,627 Realized (gain) loss on derivative instruments, net (1,905 ) (7 ) (1,912 ) (1,345 ) (3 ) (1,348 ) Income before income taxes (1)(3) 285,154 10,278 295,432 310,623 11,682 322,305 Purchases of leasing equipment and investments in finance leases (2) $ 160,518 $ — $ 160,518 1,347,202 $ — $ 1,347,202 (1) Segment income before income taxes excludes unrealized gains or losses on derivative instruments and debt termination expense. The Company recorded unrealized losses on derivative instruments of $0.5 million and $2.8 million for the three and nine months ended September 30, 2019 , respectively, an unrealized loss on derivative instruments of $0.3 million for the three months ended September 30, 2018 , and an unrealized gain of $1.0 million for the nine months ended September 30, 2018 . The Company recorded debt termination expense of $1.9 million and $2.4 million for the three and nine months ended September 30, 2019 , respectively, and $1.3 million and $1.9 million for the three and nine months ended September 30, 2018 , respectively. (2) Represents cash disbursements for purchases of leasing equipment and investments in finance leases 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. (3) Equipment leasing segment includes gain on sale of an office building of $21.0 million for the nine months ended September 30, 2018 . September 30, 2019 December 31, 2018 Equipment Leasing Equipment Trading Totals Equipment Leasing Equipment Trading Totals Equipment held for sale $ 75,234 $ 23,634 $ 98,868 $ 46,968 $ 19,485 $ 66,453 Goodwill 220,864 15,801 236,665 220,864 15,801 236,665 Total assets $ 9,755,414 $ 46,469 $ 9,801,883 $ 10,224,421 $ 45,592 $ 10,270,013 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 may be leased for a period of time and is reflected as leasing equipment as opposed to equipment held for sale and the cash flows associated with these transactions are 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 three and nine months ended September 30, 2019 and 2018 based on the Company's customers' primary domicile (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total equipment leasing revenues: Asia $ 133,787 $ 142,978 $ 405,592 $ 407,919 Europe 164,197 164,812 490,190 462,943 Americas 28,701 31,796 90,391 92,949 Bermuda 515 778 1,732 2,112 Other International 9,468 9,714 28,188 29,023 Total $ 336,668 $ 350,078 $ 1,016,093 $ 994,946 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 summarizes the geographic allocation of equipment trading revenues for the three and nine months ended September 30, 2019 and 2018 based on the location of the sale (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total equipment trading revenues: Asia $ 4,814 $ 5,824 $ 11,799 $ 11,539 Europe 9,756 6,475 22,187 15,829 Americas 8,827 10,407 24,880 23,164 Bermuda — — — — Other International 2,399 2,586 7,967 6,234 Total $ 25,796 $ 25,292 $ 66,833 $ 56,766 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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. Container Equipment Purchase Commitments At September 30, 2019 , the Company had commitments to purchase equipment in the amount of $68.6 million payable in 2019 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rates were 5.1% and 9.3% for the three months ended September 30, 2019 and 2018 , respectively, and 7.1% and 11.3% for the nine months ended September 30, 2019 and 2018, respectively. The Company has computed the provision for income taxes based on the estimated annual effective tax rate and the application of discrete items, if any, in the applicable period. The decrease in effective tax rates in 2019 was primarily the result of an increased proportion of the Company's income generated in lower tax jurisdictions. In addition, there was a further tax rate benefit realized in 2019 as the result of the vesting of restricted shares where the vest date price exceeded the grant date price. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 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 Company received payments on direct finance leases with TriStar of $0.5 million and $1.4 million for the three and nine months ended September 30, 2019 , respectively, and $0.4 million and $1.4 million for the three and nine months ended September 30, 2018 , respectively. The Company has a direct finance lease balance with TriStar of $11.0 million and $10.7 million as of September 30, 2019 and December 31, 2018 |
Non-Controlling Interest
Non-Controlling Interest | 9 Months Ended |
Sep. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interest | Noncontrolling Interest During 2019, the Company acquired all of the remaining third-party partnership interests in Triton Container Investments LLC for an aggregate of $103.0 million in cash. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company's Board of Directors has approved and declared a cash dividend of $0.53125 per share and $0.50 per share on its issued and outstanding 8.5% Series A Preference shares and 8.00% Series B Preference shares, respectively, payable on December 16, 2019 to holders of record at the close of business on December 9, 2019. The Company's Board of Directors also approved and declared a quarterly cash dividend of $0.52 per share on its issued and outstanding common shares, payable on December 20, 2019 to holders of record at the close of business on December 3, 2019 . |
Description of the Business (Po
Description of the Business (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all information and footnotes required by GAAP for complete financial statements. The interim consolidated balance sheet as of September 30, 2019 ; the consolidated statements of operations, the consolidated statements of comprehensive income, the consolidated statements of shareholders' equity for the three and nine months ended September 30, 2019 and 2018 , and the consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018 are unaudited. The consolidated balance sheet as of December 31, 2018 , included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by GAAP. The unaudited interim financial statements have been prepared on a basis consistent with the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to state fairly the Company’s financial position, results of operations, comprehensive income, shareholders' equity, and cash flows for the periods presented. The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The consolidated results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2019 or for any other future annual or interim period. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K which was filed with the SEC on February 19, 2019 . The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain changes in presentation have been made to conform the prior period presentation to current period reporting. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, 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, including residual values and depreciable lives, values of assets held for sale and other long lived assets, provision for income tax, allowance for doubtful accounts, share-based compensation, goodwill and intangible assets. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk The Company's equipment leases 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 two largest customers, CMA CGM S.A. and Mediterranean Shipping Company S.A. , accounted for 21% and 14% , respectively, of the Company's lease billings during the nine months ended September 30, 2019 . |
Accounting Policy Updates & Recently Adopted Accounting Pronouncements | Accounting Policy Updates The Company adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) on January 1, 2019 . The Company evaluates whether leases are classified as operating or financing based on certain assumptions that require judgment, such as the asset's fair value, the asset's estimated residual value, the interest rate implicit in the lease, and the asset's economic useful life. For operating leases, the Company records a lease liability based on the present value of the remaining minimum rental payments and corresponding Right-of-Use ("ROU") asset. The Company uses its estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. Lease incentives are recognized for periods of reduced rent or for larger than usual rent escalations over the term of the lease. The benefit of a rent-free period and the cost of future rent escalations are recognized on a straight-line basis over the term of the lease. The Company elected the short-term lease recognition exemption whereby a lease liability and corresponding ROU asset will not be recognized when leases, at the commencement date, have a lease term of 12 months or less. Equipment under capital lease obligations are classified as revenue earning assets and the related depreciation is recorded on the assets. Debt related to capital lease obligations is included in the Company’s debt obligations. New Accounting Pronouncements Recently Adopted Accounting Standards Updates Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) and subsequently issued amendments that replaced existing lease accounting guidance. The accounting standard requires lessees to recognize a lease liability and corresponding right-of-use asset on their balance sheets. The accounting that will be applied by lessors under ASC 842 is largely unchanged from previous GAAP. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and ASC 606, Revenue from Contracts with Customers. The Company adopted the standard on January 1, 2019 , through a cumulative-effect adjustment. Additionally, the Company elected the “package of practical expedients,” which provides: (1) An entity need not reassess whether any expired or existing contracts are or contain leases; (2) An entity need not reassess the lease classification for any expired or existing leases; and (3) An entity need not reassess initial direct costs for any existing leases. Furthermore, the Company elected the optional transition method and continued to apply the guidance in ASC 840, including its disclosure requirements, in the comparative prior year periods. At adoption, the Company recognized a lease liability of $10.5 million based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases and corresponding ROU asset of $8.9 million . The Company assessed the requirements from both a lessee and lessor perspective and concluded the adoption of this standard did not have a significant impact on the consolidated financial statements. As a result of this adoption, the Company reclassified $45.2 million of cash collections on finance lease receivables, net of income earned, from investing activities to operating activities on its consolidated statement of cash flows for the nine months ended September 30, 2018 . Targeted Improvements to Accounting for Hedging Activities. In August 2017, FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815). ASU 2017-12 changes the recognition and presentation requirements of hedge accounting, including: eliminating the requirement to separately measure and report hedge ineffectiveness; and presenting all items that affect earnings in the same income statement line item as the hedged item. Subsequent amendments permit the use of the Overnight Index Swap ("OIS") rate based on the Secured Overnight Financing Rate ("SOFR") as a U.S. benchmark interest rate for hedge accounting purposes under ASC 815, in addition to the currently permissible benchmark interest rates. This will provide the Company the ability to utilize the OIS rate based on SOFR as the benchmark interest rate on certain hedges of interest rate risk. The Company adopted the standard on January 1, 2019 , and applied the modified retrospective approach. The Company has evaluated the impact of this ASU and concluded the adoption of this standard did not have a significant impact on the consolidated financial statements. Recently Issued Accounting Standards Updates Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) and subsequently issued amendments. The guidance affects the Company's net investments in financing leases and 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. The Company plans to adopt this standard on January 1, 2020. 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. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value, which was measured using Level 2 inputs, and the carrying value of the entity's debt | September 30, 2019 December 31, 2018 Liabilities Total debt - carrying value (1) $ 7,042,788 $ 7,595,922 Total debt - fair value $ 7,127,787 $ 7,559,063 (1) Excludes unamortized debt costs of $42.8 million and $44.9 million , purchase price debt adjustments of $10.1 million and $16.3 million , and unamortized debt discounts of $4.4 million and $5.3 million as of September 30, 2019 and December 31, 2018 |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | September 30, 2019 December 31, 2018 Assets Equipment held for sale - assets at fair value (1) $ 10,781 $ 5,750 Cumulative impairment charges (2) $ (2,644 ) $ (1,846 ) (1) Represents the fair value of containers included in equipment held for sale in the consolidated balance sheets that have been impaired to write down the carrying value of the containers to their estimated fair value less costs 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. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | Intangible assets consist of above market lease intangibles. The following table summarizes the intangible assets amortization as of September 30, 2019 (in thousands): Years ending December 31, Total intangible assets 2019 $ 7,334 2020 22,491 2021 16,549 2022 10,497 2023 4,657 2024 and thereafter 1,963 Total $ 63,491 |
Other Equity Matters (Table)
Other Equity Matters (Table) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Dividends | The Company paid the following quarterly dividends during the nine months ended September 30, 2019 and 2018 on its issued and outstanding common shares: Record Date Payment Date Aggregate Payment Per Share Payment September 5, 2019 September 26, 2019 $37.6 Million $0.52 June 6, 2019 June 27, 2019 $38.6 Million $0.52 March 12, 2019 March 28, 2019 $40.4 Million $0.52 September 4, 2018 September 25, 2018 $41.6 Million $0.52 June 1, 2018 June 22, 2018 $41.6 Million $0.52 March 12, 2018 March 28, 2018 $36.0 Million $0.45 |
Schedule of accumulated other comprehensive (loss) | The following table summarizes the components of accumulated other comprehensive income, net of tax, for the nine months ended September 30, 2019 and 2018 (in thousands): Cash Flow Foreign Total Balance as of December 31, 2018 $ 19,043 $ (4,480 ) $ 14,563 Change in derivative instruments designated as cash flow hedges, net of income tax effect of ($2,144) (1) (14,323 ) — (14,323 ) Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges, net of income tax effect of ($606) (1) (1,749 ) — (1,749 ) Cumulative effect for the adoption of ASU 2017-12, net of income tax effect of $277 432 — 432 Foreign currency translation adjustment — 43 43 Balance as of March 31, 2019 3,403 (4,437 ) (1,034 ) Change in derivative instruments designated as cash flow hedges, net of income tax effect of ($3,813) (1) (31,517 ) — (31,517 ) Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges, net of income tax effect of ($591) (1) (1,716 ) — (1,716 ) Foreign currency translation adjustment — (175 ) (175 ) Balance as of June 30, 2019 (29,830 ) (4,612 ) (34,442 ) Change in derivative instruments designated as cash flow hedges, net of income tax effect of ($2,146) (1) (20,784 ) — (20,784 ) Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges, net of income tax effect of ($510) (1) (1,020 ) — (1,020 ) Foreign currency translation adjustment — (139 ) (139 ) Balance as of September 30, 2019 $ (51,634 ) $ (4,751 ) (56,385 ) Cash Flow Foreign Total Balance as of December 31, 2017 $ 31,215 $ (4,273 ) $ 26,942 Change in derivative instruments designated as cash flow hedges, net of income tax effect of $3,354 (1) 12,459 — 12,459 Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges, net of income tax effect of ($352) (1) (1,472 ) — (1,472 ) Foreign currency translation adjustment — 92 92 Tax reclassification to accumulated earnings for the adoption of ASU 2018-02 (3,029 ) — (3,029 ) Balance as of March 31, 2018 39,173 (4,181 ) 34,992 Change in derivative instruments designated as cash flow hedges, net of income tax effect of $1,350 (1) 5,005 — 5,005 Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges, net of income tax effect of ($393) (1) (1,461 ) — (1,461 ) Foreign currency translation adjustment — (178 ) (178 ) Balance as of June 30, 2018 42,717 (4,359 ) 38,358 Change in derivative instruments designated as cash flow hedges, net of income tax effect of $1,087 (1) 4,159 — 4,159 Reclassification of (gain) loss on derivative instruments designated as cash flow hedges, net of income tax effect of ($471) (1) (1,686 ) — (1,686 ) Foreign currency translation adjustment — (50 ) (50 ) Balance as of September 30, 2018 $ 45,190 $ (4,409 ) $ 40,781 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessee, Balance Sheet and Income Statement Effect | The following table summarizes the components of the Company's leases (in thousands): Financial statement caption September 30, 2019 Balance Sheet Right-of-use asset - operating Other assets $ 7,206 Lease liability - operating Accounts payable and other accrued expenses $ 8,600 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Income Statement Operating lease cost (1) Administrative expenses $ 764 $ 2,265 (1) Includes short-term leases that are immaterial. |
Lessee, Operating Lease, Liability, Maturity | The following represents our future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities as of September 30, 2019 (in thousands): Years ending December 31, 2019 $ 759 2020 2,908 2021 2,320 2022 1,974 2023 1,306 2024 and thereafter — Total undiscounted future cash flows related to lease payments $ 9,267 Less: imputed interest 667 Total present value of lease liabilities $ 8,600 |
Schedule of Components of Leveraged Lease Investments | The following table summarizes the components of the net investment in finance leases (in thousands): September 30, December 31, Future minimum lease payment receivable (1) $ 501,320 $ 574,422 Estimated residual receivable (2) 105,112 107,598 Gross finance lease receivables 606,432 682,020 Unearned income (3) (174,813 ) (203,955 ) Net investment in finance leases (4) $ 431,619 $ 478,065 (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 September 30, 2019 and December 31, 2018 . (2) The Company's leases generally include a bargain purchase option and therefore, the Company has immaterial residual value risk for assets that are subject to direct finance leases. (3) 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 September 30, 2019 and December 31, 2018 . (4) As of September 30, 2019 , three major customers represented 53% , 24% and 11% of the Company's finance lease portfolio. As of December 31, 2018 , three major customers represented 50% , 24% and 13% of the Company's finance lease portfolio. No other customer represented more than 10% of the Company's finance lease portfolio in each of those periods. |
Lessor, Operating Lease, Payments to be Received, Maturity | Contractual maturities of the Company’s gross finance lease receivables subsequent to September 30, 2019 are as follows (in thousands): Years ending December 31, 2019 $ 28,705 2020 120,707 2021 85,912 2022 79,170 2023 60,873 2024 and thereafter 231,065 Total $ 606,432 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following table summarizes the Company's outstanding fixed and floating rate debt as of September 30, 2019 (in thousands): Balance Outstanding Contractual Weighted Avg Interest Rate Maturity Range Weighted Avg Remaining Term From To Excluding impact of derivative instruments: Fixed-rate debt $4,097,881 4.23% Apr 2020 Jun 2029 3.6 years Floating-rate debt $2,944,907 3.63% Apr 2022 Dec 2025 3.9 years Including impact of derivative instruments: Fixed-rate debt $4,097,881 4.23% Hedged floating-rate debt 1,863,565 3.78% Total fixed and hedged debt 5,961,446 4.09% Unhedged floating-rate debt 1,081,342 3.63% Total $7,042,788 4.01% The table below summarizes the Company's key terms and carrying value of debt (in thousands): Contractual Weighted Avg Interest Rate (1) Maturity Range (1) September 30, 2019 December 31, 2018 From To Institutional notes 4.65% Apr 2020 Jun 2029 $ 1,965,414 $ 2,198,200 Asset-backed securitization term notes 3.76% May 2022 Jun 2028 2,815,523 3,063,821 Term loan facilities 3.58% Apr 2022 Nov 2023 1,227,875 1,543,375 Asset-backed securitization warehouse 3.79% Dec 2025 Dec 2025 410,000 340,000 Revolving credit facilities 3.61% Sep 2023 Jul 2024 573,000 375,000 Capital lease obligations 4.74% Jan 2024 Feb 2024 50,976 75,526 Total debt outstanding 7,042,788 7,595,922 Unamortized debt costs (42,790 ) (44,889 ) Unamortized purchase price adjustments (10,111 ) (16,308 ) Unamortized debt premiums & discounts (4,356 ) (5,293 ) Debt, net of unamortized debt costs $ 6,985,531 $ 7,529,432 (1) Data as of September 30, 2019 . |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of interest rate derivatives | As of September 30, 2019 , the Company had interest rate cap and swap agreements in place to fix interest rates on a portion of its borrowings under debt facilities with floating interest rates as summarized below: Derivatives Notional Amount Weighted Average Cap Rate Weighted Average Interest Rate Swap (1) $1,863.6 million 2.21% n/a 4.1 years Interest Rate Cap $200.0 million n/a 5.5% 2.3 years ___________________________________________________ (1) The impact of forward starting swaps with total notional amount of $200.0 million will increase the weighted average remaining term to 4.8 years . |
Schedule of derivatives instruments and their effect on consolidated statements of operations and consolidated statements of comprehensive income | The following table summarizes the impact of derivative instruments on the consolidated statements of operations and the consolidated statements of comprehensive income on a pretax basis (in thousands): Three Months Ended Nine Months Ended Derivative Instrument Financial statement caption 2019 2018 2019 2018 Non-designated interest rate swaps Realized (gain) loss on derivative instruments, net $ (539 ) $ (608 ) $ (1,912 ) $ (1,348 ) Non-designated interest rate swaps Unrealized (gain) loss on derivative instruments, net $ 504 $ 322 $ 2,757 $ (975 ) Designated interest rate hedges Other comprehensive (income) loss $ 22,930 $ (5,246 ) $ 74,727 $ (27,414 ) Designated interest rate hedges Interest and debt (income) expense $ (1,530 ) $ (2,157 ) $ (6,192 ) $ (5,835 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The fair value of derivative instruments on the Company's consolidated balance sheets as of September 30, 2019 and December 31, 2018 was as follows (in thousands): Asset Derivatives Liability Derivatives Derivative Instrument September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Interest rate hedges, designated $ 246 $ 10,531 $ 75,777 $ 10,966 Interest rate hedges, non-designated 636 3,392 — — Total derivatives $ 882 $ 13,923 $ 75,777 $ 10,966 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The following tables summarize segment information and the consolidated totals reported (in thousands): Three Months Ended September 30, 2019 2018 Equipment Equipment Totals Equipment Equipment Totals Total leasing revenues $ 336,088 $ 580 $ 336,668 $ 349,022 $ 1,056 $ 350,078 Trading margin — 4,150 4,150 — 5,810 5,810 Net gain on sale of leasing equipment 6,196 — 6,196 7,055 — 7,055 Depreciation and amortization expense 133,194 173 133,367 141,263 74 141,337 Interest and debt expense 77,058 343 77,401 82,116 386 82,502 Realized (gain) loss on derivative instruments, net (536 ) (3 ) (539 ) (606 ) (2 ) (608 ) Income before income taxes (1) 94,394 3,428 97,822 104,226 2,862 107,088 Purchases of leasing equipment and investments in finance leases (2) $ 10,532 $ — $ 10,532 $ 463,195 $ — $ 463,195 Nine Months Ended September 30, 2019 2018 Equipment Equipment Totals Equipment Equipment Totals Total leasing revenues $ 1,014,055 $ 2,038 $ 1,016,093 $ 991,639 $ 3,307 $ 994,946 Trading margin — 12,233 12,233 — 12,795 12,795 Net gain on sale of leasing equipment 22,184 — 22,184 27,378 — 27,378 Depreciation and amortization expense 402,797 527 403,324 404,927 737 405,664 Interest and debt expense 242,115 1,066 243,181 235,531 1,096 236,627 Realized (gain) loss on derivative instruments, net (1,905 ) (7 ) (1,912 ) (1,345 ) (3 ) (1,348 ) Income before income taxes (1)(3) 285,154 10,278 295,432 310,623 11,682 322,305 Purchases of leasing equipment and investments in finance leases (2) $ 160,518 $ — $ 160,518 1,347,202 $ — $ 1,347,202 (1) Segment income before income taxes excludes unrealized gains or losses on derivative instruments and debt termination expense. The Company recorded unrealized losses on derivative instruments of $0.5 million and $2.8 million for the three and nine months ended September 30, 2019 , respectively, an unrealized loss on derivative instruments of $0.3 million for the three months ended September 30, 2018 , and an unrealized gain of $1.0 million for the nine months ended September 30, 2018 . The Company recorded debt termination expense of $1.9 million and $2.4 million for the three and nine months ended September 30, 2019 , respectively, and $1.3 million and $1.9 million for the three and nine months ended September 30, 2018 , respectively. (2) Represents cash disbursements for purchases of leasing equipment and investments in finance leases 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. (3) Equipment leasing segment includes gain on sale of an office building of $21.0 million for the nine months ended September 30, 2018 . September 30, 2019 December 31, 2018 Equipment Leasing Equipment Trading Totals Equipment Leasing Equipment Trading Totals Equipment held for sale $ 75,234 $ 23,634 $ 98,868 $ 46,968 $ 19,485 $ 66,453 Goodwill 220,864 15,801 236,665 220,864 15,801 236,665 Total assets $ 9,755,414 $ 46,469 $ 9,801,883 $ 10,224,421 $ 45,592 $ 10,270,013 |
Schedule of revenues by geographic location | The following table summarizes the geographic allocation of equipment trading revenues for the three and nine months ended September 30, 2019 and 2018 based on the location of the sale (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total equipment trading revenues: Asia $ 4,814 $ 5,824 $ 11,799 $ 11,539 Europe 9,756 6,475 22,187 15,829 Americas 8,827 10,407 24,880 23,164 Bermuda — — — — Other International 2,399 2,586 7,967 6,234 Total $ 25,796 $ 25,292 $ 66,833 $ 56,766 The following table summarizes the geographic allocation of equipment leasing revenues for the three and nine months ended September 30, 2019 and 2018 based on the Company's customers' primary domicile (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total equipment leasing revenues: Asia $ 133,787 $ 142,978 $ 405,592 $ 407,919 Europe 164,197 164,812 490,190 462,943 Americas 28,701 31,796 90,391 92,949 Bermuda 515 778 1,732 2,112 Other International 9,468 9,714 28,188 29,023 Total $ 336,668 $ 350,078 $ 1,016,093 $ 994,946 |
Description of the Business Con
Description of the Business Concentration of Credit Risk (Details) - Operating and Capital Leases Billing [Member] [Domain] - Credit Concentration Risk [Member] | 9 Months Ended |
Sep. 30, 2019 | |
CMA CGM S.A [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 21.00% |
Mediterranean Shipping Company [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 14.00% |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease liability - operating | $ 8,600 | $ 10,500 | |
Right-of-use asset - operating | $ 8,900 | ||
Cash collections on finance lease receivables, net of income earned | $ 53,706 | $ 45,164 | |
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash collections on finance lease receivables, net of income earned | $ 45,200 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Liabilities | |||||
Debt and Capital Lease Obligations | $ 7,042,788 | $ 7,042,788 | $ 7,595,922 | ||
Deferred financing costs | (42,790) | (42,790) | (44,889) | ||
Adjustment to Purchase Price of Debt | (10,111) | (10,111) | (16,308) | ||
Unamortized debt premiums & discounts | (4,356) | (4,356) | (5,293) | ||
Asset Impairment (Charges) Reversal, Net | 1,400 | $ 1,300 | 4,100 | $ 2,700 | |
Level 2 | |||||
Liabilities | |||||
Assets Held-for-sale, Impairment Charges | (2,644) | (2,644) | (1,846) | ||
Carrying Value | |||||
Liabilities | |||||
Debt and Capital Lease Obligations | 7,042,788 | 7,042,788 | 7,595,922 | ||
Estimate of Fair Value | Level 2 | |||||
Liabilities | |||||
Debt and Capital Lease Obligations | 7,127,787 | 7,127,787 | 7,559,063 | ||
Carrying value containers impaired to fair value [Member] | Level 2 | |||||
Liabilities | |||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | $ 10,781 | $ 10,781 | $ 5,750 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | $ 8,800 | $ 15,500 | $ 30,200 | $ 49,300 |
Above Market Lease Intangibles [Domain] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
2019 | 7,334 | 7,334 | ||
2020 | 22,491 | 22,491 | ||
2021 | 16,549 | 16,549 | ||
2022 | 10,497 | 10,497 | ||
2023 | 4,657 | 4,657 | ||
2024 and thereafter | 1,963 | 1,963 | ||
Total | $ 63,491 | $ 63,491 |
Share Based Compensation (Detai
Share Based Compensation (Details) - USD ($) $ in Thousands | Feb. 12, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Stock based compensation plans | |||||
Share-based Compensation | $ 1,800 | $ 1,700 | $ 7,238 | $ 7,412 | |
2016 Triton Plan [Member] | |||||
Stock based compensation plans | |||||
Employee Service Share-based Compensation Not yet Recognized | $ 8,900 | $ 8,900 | |||
Restricted Stock [Member] | Common Stock [Member] | 2016 Triton Plan [Member] | |||||
Stock based compensation plans | |||||
Grants of restricted shares (in shares) | 261,728 | ||||
Settled or Cancelled (in shares) | 174,896 | ||||
Employees, Non-Directors [Member] | Restricted Stock [Member] | Common Stock [Member] | 2016 Triton Plan [Member] | |||||
Stock based compensation plans | |||||
Vested (per share) | 43,035 |
Other Equity Matters (Details)
Other Equity Matters (Details) $ / shares in Units, $ in Thousands | Sep. 05, 2019USD ($)$ / shares | Jun. 06, 2019USD ($)$ / shares | Mar. 12, 2019USD ($)$ / shares | Sep. 04, 2018USD ($)$ / shares | Jun. 01, 2018USD ($)$ / shares | Mar. 12, 2018USD ($)$ / shares | Jun. 30, 2019USD ($)shares | Mar. 31, 2019USD ($)shares | Sep. 30, 2019USD ($)$ / shares | Jun. 30, 2019USD ($)$ / sharesshares | Mar. 31, 2019USD ($)shares | Sep. 30, 2018USD ($)$ / shares | Sep. 30, 2019USD ($)voting_right$ / sharesshares | Sep. 30, 2018$ / shares | Jul. 08, 2019 | Apr. 25, 2019USD ($) |
Class of Stock [Line Items] | ||||||||||||||||
Treasury Stock, Value | $ 51,884 | $ 73,942 | $ 83,293 | $ 1,115 | ||||||||||||
Offering Amount, Interest Rate, Stated Percentage | 1.75% | |||||||||||||||
Preferred Stock, Redemption Price Per Share | $ / shares | $ 25 | $ 25 | ||||||||||||||
Dividends | $ 37,600 | $ 38,600 | $ 40,400 | $ 41,600 | $ 41,600 | $ 36,000 | ||||||||||
Cash dividends paid per share | $ / shares | $ 0.52 | $ 0.52 | $ 0.52 | $ 0.52 | $ 0.52 | $ 0.45 | $ 0.52 | $ 0.52 | $ 1.56 | $ 1.49 | ||||||
Preferred Stock, Voting Right | voting_right | 0 | |||||||||||||||
Common Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 200,000 | |||||||||||||||
Stock Repurchased During Period, Shares | shares | 6,589,163 | |||||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 31.70 | |||||||||||||||
Treasury Stock, Value | $ 209,100 | |||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 94,800 | 94,800 | ||||||||||||||
Preferred Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Cumulative unpaid preferred dividends | 800 | $ 800 | ||||||||||||||
Series A Preferred Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred Stock, Shares Issued | shares | 3,450,000 | 3,450,000 | ||||||||||||||
Proceeds from Issuance of Preferred Stock, Preference Stock, and Warrants | $ 86,300 | |||||||||||||||
Preferred Units, Offering Costs | $ 3,300 | $ 3,300 | ||||||||||||||
Dividends | $ 1,800 | $ 1,800 | ||||||||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ / shares | $ 0.53125 | $ 0.53125 | ||||||||||||||
Series B Preferred Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred Stock, Shares Issued | shares | 5,750,000 | 5,750,000 | ||||||||||||||
Proceeds from Issuance of Preferred Stock, Preference Stock, and Warrants | $ 143,800 | |||||||||||||||
Preferred Units, Offering Costs | $ 5,000 | $ 5,000 | ||||||||||||||
Dividends | $ 2,600 | |||||||||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ / shares | $ 0.45 | |||||||||||||||
Redeemable Preferred Stock [Member] | Series A Preferred Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Offering Amount, Interest Rate, Stated Percentage | 8.50% | 8.50% | 8.50% | 8.50% | ||||||||||||
Redeemable Preferred Stock [Member] | Series B Preferred Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Offering Amount, Interest Rate, Stated Percentage | 8.00% | 8.00% |
Other Equity Matters Dividends
Other Equity Matters Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 05, 2019 | Jun. 06, 2019 | Mar. 12, 2019 | Sep. 04, 2018 | Jun. 01, 2018 | Mar. 12, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Dividends Payable [Line Items] | ||||||||||
Dividends | $ 37.6 | $ 38.6 | $ 40.4 | $ 41.6 | $ 41.6 | $ 36 | ||||
Cash dividends paid per share | $ 0.52 | $ 0.52 | $ 0.52 | $ 0.52 | $ 0.52 | $ 0.45 | $ 0.52 | $ 0.52 | $ 1.56 | $ 1.49 |
Components Of Accumulated Other
Components Of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 02, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||||
Accumulated other comprehensive income (loss) | $ (56,385) | $ (56,385) | $ 14,563 | ||||||||||
Change in derivative instruments designated as cash flow hedges | (20,784) | $ 4,159 | (66,624) | $ 21,623 | |||||||||
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges | (1,020) | (1,686) | (4,485) | (4,619) | |||||||||
Foreign currency translation adjustment | (139) | (50) | (271) | (136) | |||||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||||
Accumulated other comprehensive income (loss) | (51,634) | $ (29,830) | $ 3,403 | 45,190 | $ 42,717 | $ 39,173 | (51,634) | 45,190 | 19,043 | $ 31,215 | |||
Change in derivative instruments designated as cash flow hedges | (20,784) | (31,517) | (14,323) | 4,159 | 5,005 | 12,459 | |||||||
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges | (1,020) | (1,716) | (1,749) | (1,686) | (1,461) | (1,472) | |||||||
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||||
Accumulated other comprehensive income (loss) | (4,751) | (4,612) | (4,437) | (4,409) | (4,359) | (4,181) | (4,751) | (4,409) | (4,480) | (4,273) | |||
Change in derivative instruments designated as cash flow hedges | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Foreign currency translation adjustment | (139) | (175) | 43 | (50) | (178) | 92 | |||||||
AOCI Attributable to Parent [Member] | |||||||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||||
Accumulated other comprehensive income (loss) | (56,385) | (34,442) | (1,034) | 40,781 | 38,358 | 34,992 | $ (56,385) | $ 40,781 | $ 14,563 | $ 26,942 | |||
Change in derivative instruments designated as cash flow hedges | (20,784) | (31,517) | (14,323) | 4,159 | 5,005 | 12,459 | |||||||
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges | (1,020) | (1,716) | (1,749) | (1,686) | (1,461) | (1,472) | |||||||
Foreign currency translation adjustment | $ (139) | $ (175) | $ 43 | $ (50) | $ (178) | $ 92 | |||||||
Accounting Standards Update 2017-12 [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||||
Cumulative effect in period of adoption | $ 432 | ||||||||||||
Accounting Standards Update 2017-12 [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||||
Cumulative effect in period of adoption | 0 | ||||||||||||
Accounting Standards Update 2017-12 [Member] | AOCI Attributable to Parent [Member] | |||||||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||||
Cumulative effect in period of adoption | $ 432 | ||||||||||||
Accounting Standards Update 2018-02 [Member] | |||||||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||||
Cumulative effect in period of adoption | $ 0 | ||||||||||||
Accounting Standards Update 2018-02 [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||||
Cumulative effect in period of adoption | $ (3,029) | ||||||||||||
Accounting Standards Update 2018-02 [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||||
Cumulative effect in period of adoption | 0 | ||||||||||||
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member] | |||||||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||||
Cumulative effect in period of adoption | $ (3,029) | $ (3,029) |
Leases (Details)
Leases (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Operating lease, weighted average implicit rate, percent | 4.17% | 4.17% |
Lessee, operating lease, remaining term of contract | 3 years 6 months | 3 years 6 months |
Operating lease, payments | $ 0.8 | $ 2.4 |
Leases - Financial Statement Im
Leases - Financial Statement Impact (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use asset - operating | $ 8,900 | ||
Lease liability - operating | $ 8,600 | $ 8,600 | $ 10,500 |
Administrative expenses | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease cost | 764 | 2,265 | |
Other assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use asset - operating | 7,206 | 7,206 | |
Accounts payable and other accrued expenses | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease liability - operating | $ 8,600 | $ 8,600 |
Leases - Operating Leases Lesse
Leases - Operating Leases Lessee Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 | $ 759 | |
2020 | 2,908 | |
2021 | 2,320 | |
2022 | 1,974 | |
2023 | 1,306 | |
2024 and thereafter | 0 | |
Total undiscounted future cash flows related to lease payments | 9,267 | |
Less: imputed interest | 667 | |
Lease liability - operating | $ 8,600 | $ 10,500 |
- Net Investment in Finance Lea
- Net Investment in Finance Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | ||
Future minimum lease payment receivable | $ 501,320 | $ 574,422 |
Estimated residual receivable | 105,112 | 107,598 |
Gross finance lease receivables | 606,432 | 682,020 |
Unearned income | (174,813) | (203,955) |
Net investment in finance leases | $ 431,619 | $ 478,065 |
Customer One | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 53.00% | 50.00% |
Customer Two | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 24.00% | 24.00% |
Customer Three | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11.00% | 13.00% |
Leases - Finance Leases Lessor
Leases - Finance Leases Lessor Maturities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 28,705 |
2020 | 120,707 |
2021 | 85,912 |
2022 | 79,170 |
2023 | 60,873 |
2024 and thereafter | 231,065 |
Total | $ 606,432 |
Debt Items (Details)
Debt Items (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt outstanding | $ 7,042,788 | $ 7,595,922 |
Deferred financing costs | 42,790 | 44,889 |
Unamortized debt premiums & discounts | 4,356 | 5,293 |
Unamortized purchase price debt adjustments | 10,111 | 16,308 |
Debt, net of unamortized debt costs | $ 6,985,531 | 7,529,432 |
Institutional notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, effective percentage | 4.65% | |
Debt outstanding | $ 1,965,414 | 2,198,200 |
Asset-backed securitization term notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, effective percentage | 3.76% | |
Debt outstanding | $ 2,815,523 | 3,063,821 |
Term loan facilities | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, effective percentage | 3.58% | |
Debt outstanding | $ 1,227,875 | 1,543,375 |
Asset-backed securitization warehouse | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, effective percentage | 3.79% | |
Debt outstanding | $ 410,000 | 340,000 |
Revolving credit facilities | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, effective percentage | 3.61% | |
Debt outstanding | $ 573,000 | 375,000 |
Capital lease obligations | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, effective percentage | 4.74% | |
Debt outstanding | $ 50,976 | $ 75,526 |
Debt Debt Items 2 (Details)
Debt Debt Items 2 (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Excluding Impact [Member] | Variable Rate Debt [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Carrying Value | $ 2,944,907 |
Debt, Weighted Average Interest Rate | 3.63% |
Debt, Percentage Interest Rate Remaining Term | 3 years 10 months 24 days |
Excluding Impact [Member] | Fixed Rate Debt [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Carrying Value | $ 4,097,881 |
Debt, Weighted Average Interest Rate | 4.23% |
Debt, Percentage Interest Rate Remaining Term | 3 years 7 months 6 days |
Including Impact [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Carrying Value | $ 7,042,788 |
Debt, Weighted Average Interest Rate | 4.01% |
Designated as Hedging Instrument [Member] | Including Impact [Member] | Fixed and Hedged Debt [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Carrying Value | $ 5,961,446 |
Debt, Weighted Average Interest Rate | 4.09% |
Designated as Hedging Instrument [Member] | Including Impact [Member] | Hedged Debt [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Carrying Value | $ 1,863,565 |
Debt, Weighted Average Interest Rate | 3.78% |
Not Designated as Hedging Instrument [Member] | Including Impact [Member] | Unhedged Debt [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Carrying Value | $ 1,081,342 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | May 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Aug. 02, 2019 | Aug. 01, 2019 | Jul. 08, 2019 | May 16, 2019 | Feb. 08, 2019 | Feb. 07, 2019 |
Debt Instrument [Line Items] | |||||||||||
Debt termination expense | $ 1,870 | $ 1,348 | $ 2,428 | $ 1,851 | |||||||
Maximum borrowing capacity | $ 325,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | ||||||||||
Asset-Backed Securitization Warehouse Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 500,000 | $ 39,200 | $ 800,000 | $ 300,000 | |||||||
Term loan facilities | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, interest rate, effective percentage | 3.58% | 3.58% | |||||||||
Repayments of Debt | $ 210,300 | ||||||||||
Institutional notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, interest rate, effective percentage | 4.65% | 4.65% | |||||||||
Asset-backed securitization warehouse | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, interest rate, effective percentage | 3.79% | 3.79% | |||||||||
Bank Account Maintenance Required Amount Balance, Interest Expense | 3 months | ||||||||||
Asset-backed securitization term notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, interest rate, effective percentage | 3.76% | 3.76% | |||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 1,560,000 | $ 1,560,000 | |||||||||
Debt Instrument, Face Amount | $ 1,125,000 | ||||||||||
Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Capital Lease Period Over Which Interest Expense Recognized Preceding Early Purchase Option | 3 years | ||||||||||
Minimum [Member] | Institutional notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Term | 7 years | ||||||||||
Minimum [Member] | Asset-backed securitization term notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Bank Account Maintenance Required Amount Balance, Interest Expense | 3 months | ||||||||||
Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Capital Lease Period Over Which Interest Expense Recognized Preceding Early Purchase Option | 10 years | ||||||||||
Maximum [Member] | Institutional notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Term | 12 years | ||||||||||
Maximum [Member] | Asset-backed securitization term notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Bank Account Maintenance Required Amount Balance, Interest Expense | 9 months | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Asset-Backed Securitization Warehouse Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, interest rate, effective percentage | 1.65% | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Term loan facilities | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.85% | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, interest rate, effective percentage | 1.50% |
Derivative Instruments - Intere
Derivative Instruments - Interest Rate Swap (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Forward Starting Swaps [Member] | |
Fair Value of Derivative Instruments | |
Notional amount | $ 200 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |
Fair Value of Derivative Instruments | |
Net Notional Amount of Interest Rate Agreements | $ 1,863.6 |
Net Notional Amount of Interest Rate During Period | 2.21% |
Weighted Average Remaining Term | 4 years 1 month 6 days |
Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | |
Fair Value of Derivative Instruments | |
Net Notional Amount of Interest Rate Agreements | $ 200 |
Derivative, Cap Interest Rate | 5.50% |
Weighted Average Remaining Term | 2 years 3 months 18 days |
Designated as Hedging Instrument [Member] | Forward Starting Swaps [Member] | |
Fair Value of Derivative Instruments | |
Weighted Average Remaining Term | 4 years 9 months 18 days |
Derivative Instruments - Summar
Derivative Instruments - Summary of Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value of Derivative Instruments | ||||
Realized (gain) loss on derivative instruments, net | $ (539) | $ (608) | $ (1,912) | $ (1,348) |
Other comprehensive (income) loss | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||
Fair Value of Derivative Instruments | ||||
Designated interest rate hedges | 22,930 | (5,246) | 74,727 | (27,414) |
Gain (Loss) on Derivative Instruments [Member] | Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||||
Fair Value of Derivative Instruments | ||||
Realized (gain) loss on derivative instruments, net | (539) | (608) | (1,912) | (1,348) |
Unrealized (Gain) Loss On Derivative Instruments [Member] | Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||||
Fair Value of Derivative Instruments | ||||
Non-designated interest rate swaps | (504) | (322) | (2,757) | 975 |
Interest and Debt Expense | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||
Fair Value of Derivative Instruments | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 1,530 | $ 2,157 | $ 6,192 | $ 5,835 |
Derivative Instruments Fair Val
Derivative Instruments Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Cash Collateral for Interest Rate Swap Contracts | $ 18,700 | |
Asset Derivatives | 882 | $ 13,923 |
Liability Derivatives | 75,777 | 10,966 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Asset Derivatives | 246 | 10,531 |
Liability Derivatives | 75,777 | 10,966 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Asset Derivatives | 636 | 3,392 |
Liability Derivatives | $ 0 | $ 0 |
Segment and Geographic Inform_3
Segment and Geographic Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Industry Segment Information | |||||
Number of operating segments | segment | 2 | ||||
Number of reportable segments | segment | 2 | ||||
Total leasing revenues | $ 336,668,000 | $ 350,078,000 | $ 1,016,093,000 | $ 994,946,000 | |
Trading margin | 4,150,000 | 5,810,000 | 12,233,000 | 12,795,000 | |
Net gain on sale of leasing equipment | 6,196,000 | 7,055,000 | 22,184,000 | 27,378,000 | |
Depreciation and amortization expense | 133,367,000 | 141,337,000 | 403,324,000 | 405,664,000 | |
Interest and debt expense | 77,401,000 | 82,502,000 | 243,181,000 | 236,627,000 | |
Realized (gain) loss on derivative instruments, net | (539,000) | (608,000) | (1,912,000) | (1,348,000) | |
Income before income taxes | 97,822,000 | 107,088,000 | 295,432,000 | 322,305,000 | |
Payments to Acquire Productive Assets | 10,532,000 | 463,195,000 | 160,518,000 | 1,347,202,000 | |
Equipment held for sale | 98,868,000 | 98,868,000 | $ 66,453,000 | ||
Goodwill at the end of the period | 236,665,000 | 236,665,000 | 236,665,000 | ||
Total assets at the end of the period | 9,801,883,000 | 9,801,883,000 | 10,270,013,000 | ||
Equipment trading revenues | 25,796,000 | 25,292,000 | 66,833,000 | 56,766,000 | |
Expenses | 172,446,000 | 173,469,000 | 515,856,000 | 499,240,000 | |
Unrealized (gain) loss on derivative instruments, net | 504,000 | 322,000 | 2,757,000 | (975,000) | |
Debt termination expense | 1,870,000 | 1,348,000 | 2,428,000 | 1,851,000 | |
Equipment Leasing | |||||
Industry Segment Information | |||||
Total leasing revenues | 336,088,000 | 349,022,000 | 1,014,055,000 | 991,639,000 | |
Trading margin | 0 | 0 | 0 | 0 | |
Depreciation and amortization expense | 133,194,000 | 141,263,000 | 402,797,000 | 404,927,000 | |
Interest and debt expense | 77,058,000 | 82,116,000 | 242,115,000 | 235,531,000 | |
Realized (gain) loss on derivative instruments, net | (536,000) | (606,000) | 1,905,000 | (1,345,000) | |
Income before income taxes | 94,394,000 | 104,226,000 | 285,154,000 | 310,623,000 | |
Payments to Acquire Productive Assets | 10,532,000 | 463,195,000 | 160,518,000 | 1,347,202,000 | |
Equipment held for sale | 75,234,000 | 75,234,000 | 46,968,000 | ||
Goodwill at the end of the period | 220,864,000 | 220,864,000 | 220,864,000 | ||
Total assets at the end of the period | 9,755,414,000 | 9,755,414,000 | 10,224,421,000 | ||
Equipment Trading | |||||
Industry Segment Information | |||||
Total leasing revenues | 580,000 | 1,056,000 | 2,038,000 | 3,307,000 | |
Trading margin | 4,150,000 | 5,810,000 | 12,233,000 | 12,795,000 | |
Net gain on sale of leasing equipment | 0 | 0 | 0 | 0 | |
Depreciation and amortization expense | 173,000 | 74,000 | 527,000 | 737,000 | |
Interest and debt expense | 343,000 | 386,000 | 1,066,000 | 1,096,000 | |
Realized (gain) loss on derivative instruments, net | (3,000) | (2,000) | (7,000) | (3,000) | |
Income before income taxes | 3,428,000 | 2,862,000 | 10,278,000 | 11,682,000 | |
Payments to Acquire Productive Assets | 0 | $ 0 | 0 | 0 | |
Equipment held for sale | 23,634,000 | 23,634,000 | 19,485,000 | ||
Goodwill at the end of the period | 15,801,000 | 15,801,000 | 15,801,000 | ||
Total assets at the end of the period | $ 46,469,000 | 46,469,000 | $ 45,592,000 | ||
Intersegment Eliminations | |||||
Industry Segment Information | |||||
Equipment trading revenues | 0 | 0 | |||
Expenses | $ 0 | 0 | |||
Continuing Operations [Member] | Equipment Leasing | |||||
Industry Segment Information | |||||
Net gain on sale of leasing equipment | $ 21,000,000 |
Segment and Geographic Inform_4
Segment and Geographic Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Geographic Segment Information | ||||
Total leasing revenues | $ 336,668 | $ 350,078 | $ 1,016,093 | $ 994,946 |
Equipment trading revenues | 25,796 | 25,292 | 66,833 | 56,766 |
Asia | ||||
Geographic Segment Information | ||||
Total leasing revenues | 133,787 | 142,978 | 405,592 | 407,919 |
Equipment trading revenues | 4,814 | 5,824 | 11,799 | 11,539 |
Europe | ||||
Geographic Segment Information | ||||
Total leasing revenues | 164,197 | 164,812 | 490,190 | 462,943 |
Equipment trading revenues | 9,756 | 6,475 | 22,187 | 15,829 |
Americas | ||||
Geographic Segment Information | ||||
Total leasing revenues | 28,701 | 31,796 | 90,391 | 92,949 |
Equipment trading revenues | 8,827 | 10,407 | 24,880 | 23,164 |
Bermuda | ||||
Geographic Segment Information | ||||
Total leasing revenues | 515 | 778 | 1,732 | 2,112 |
Equipment trading revenues | 0 | 0 | 0 | 0 |
Other international | ||||
Geographic Segment Information | ||||
Total leasing revenues | 9,468 | 9,714 | 28,188 | 29,023 |
Equipment trading revenues | $ 2,399 | $ 2,586 | $ 7,967 | $ 6,234 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase commitment payable | $ 68.6 |
Income Taxes Tax Detail (Detail
Income Taxes Tax Detail (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 5.10% | 9.30% | 7.10% | 11.30% |
Related Party Transactions (Det
Related Party Transactions (Details) - TriStar [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Percentage Of Ownership | 50.00% | 50.00% | |||
Direct Financing Lease Receivable [Member] | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from (Repayments of) Related Party Debt | $ 0.5 | $ 0.4 | $ 1.4 | $ 1.4 | |
Loans and Leases Receivable, Related Parties | $ 11 | $ 11 | $ 10.7 |
Non-Controlling Interest (Detai
Non-Controlling Interest (Details) $ in Millions | Sep. 30, 2019USD ($) |
Noncontrolling Interest [Abstract] | |
Aggregate investment | $ 103 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Dec. 20, 2019 | Sep. 30, 2019 | Jul. 08, 2019 | Jun. 30, 2019 | Mar. 31, 2019 |
Subsequent Event [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Dividend approved and declared (in dollars per share) | $ 0.52 | ||||
Series A Preferred Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash Dividends, Approved | $ 0.53125 | ||||
Series A Preferred Stock [Member] | Series A Cumulative Redeemable Perpetual Preferred Shares [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.50% | 8.50% | |||
Series B Preferred Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash Dividends, Approved | $ 0.50 | ||||
Series B Preferred Stock [Member] | Series A Cumulative Redeemable Perpetual Preferred Shares [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% |
Uncategorized Items - triton10-
Label | Element | Value |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 3,029,000 |