Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 11, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37827 | ||
Entity Registrant Name | Triton International Limited | ||
Entity Incorporation, State or Country Code | D0 | ||
Entity Tax Identification Number | 98-1276572 | ||
Entity Address, Address Line One | Victoria Place | ||
Entity Address, Address Line Two | 5th Floor | ||
Entity Address, Address Line Three | 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,508 | ||
Entity Common Stock, Shares Outstanding | 65,262,183 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Part of Form 10-K Document Incorporated by Reference Part III, Items 10, 11, 12, 13, and 14 Portion of the Registrant's proxy statement to be filed in connection with the Annual Meeting of Shareholders of the Registrant to be held on April 26, 2022. | ||
Entity Central Index Key | 0001660734 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
New York Stock Exchange | Common shares, $0.01 par value per share | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common shares, $0.01 par value per share | ||
Trading Symbol | TRTN | ||
Security Exchange Name | NYSE | ||
New York Stock Exchange | 8.50% Series A Cumulative Redeemable Perpetual Preference Shares | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 8.50% Series A Cumulative Redeemable Perpetual Preference Shares | ||
Trading Symbol | TRTN PRA | ||
Security Exchange Name | NYSE | ||
New York Stock Exchange | 8.00% Series B Cumulative Redeemable Perpetual Preference Shares | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 8.00% Series B Cumulative Redeemable Perpetual Preference Shares | ||
Trading Symbol | TRTN PRB | ||
Security Exchange Name | NYSE | ||
New York Stock Exchange | 7.375% Series C Cumulative Redeemable Perpetual Preference Shares | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 7.375% Series C Cumulative Redeemable Perpetual Preference Shares | ||
Trading Symbol | TRTN PRC | ||
Security Exchange Name | NYSE | ||
New York Stock Exchange | 6.875% Series D Cumulative Redeemable Perpetual Preference Shares | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 6.875% Series D Cumulative Redeemable Perpetual Preference Shares | ||
Trading Symbol | TRTN PRD | ||
Security Exchange Name | NYSE | ||
New York Stock Exchange | 5.75% Series E Cumulative Redeemable Perpetual Preference Shares | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 5.75% Series E Cumulative Redeemable Perpetual Preference Shares | ||
Trading Symbol | TRTN PRE | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Firm ID | 185 |
Auditor Location | New York, NY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS: | ||
Leasing equipment, net of accumulated depreciation of $3,919,181 and $3,370,652 | $ 10,201,113 | $ 8,630,696 |
Net investment in finance leases | 1,558,290 | 282,131 |
Equipment held for sale | 48,746 | 67,311 |
Revenue earning assets | 11,808,149 | 8,980,138 |
Cash and cash equivalents | 106,168 | 61,512 |
Restricted cash | 124,370 | 90,484 |
Accounts receivable, net of allowances of $1,178 and $2,192 | 294,792 | 226,090 |
Goodwill | 236,665 | 236,665 |
Lease intangibles, net of accumulated amortization of $281,340 and $264,791 | 17,117 | 33,666 |
Other assets | 50,346 | 83,969 |
Fair value of derivative instruments | 6,231 | 9 |
Total assets | 12,643,838 | 9,712,533 |
LIABILITIES AND SHAREHOLDERS' EQUITY: | ||
Equipment purchases payable | 429,568 | 191,777 |
Fair value of derivative instruments | 48,277 | 128,872 |
Deferred revenue | 92,198 | 26,786 |
Accounts payable and other accrued expenses | 70,557 | 68,449 |
Net deferred income tax liability | 376,009 | 327,431 |
Debt, net of unamortized costs of $63,794 and $42,747 | 8,562,517 | 6,403,270 |
Total liabilities | 9,579,126 | 7,146,585 |
Shareholders' equity: | ||
Undesignated shares, $0.01 par value, 800,000 and 7,800,000 shares authorized, respectively, no shares issued and outstanding | 0 | 0 |
Treasury shares, at cost, 15,429,499 and 13,901,326 shares, respectively | (522,360) | (436,822) |
Additional paid-in capital | 904,224 | 905,323 |
Accumulated earnings | 2,000,854 | 1,674,670 |
Accumulated other comprehensive income (loss) | (48,819) | (133,035) |
Total shareholders' equity | 3,064,712 | 2,565,948 |
Total liabilities and shareholders' equity | 12,643,838 | 9,712,533 |
Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred shares, $0.01 par value, at liquidation preference | 730,000 | 555,000 |
Designated Common Stock [Member] | ||
Shareholders' equity: | ||
Common shares, $0.01 par value, 270,000,000 shares authorized, 81,295,366 and 81,151,723 shares issued, respectively | $ 813 | $ 812 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leasing equipment, accumulated depreciation and allowances | $ 3,919,181 | $ 3,370,652 |
Accounts Receivable, Allowances | 1,178 | 2,192 |
Debt, Unamortized Deferred Financing Costs | 63,794 | 42,747 |
Lease intangibles, Accumulated Amortization | $ 281,340 | $ 264,791 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Treasury Stock, Shares (in shares) | 15,429,499 | 13,901,326 |
Undesignated Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 800,000 | 7,800,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leasing revenues: | |||
Operating leases | $ 1,480,495 | $ 1,276,697 | $ 1,307,218 |
Finance leases | 53,385 | 31,210 | 40,051 |
Total leasing revenues | 1,533,880 | 1,307,907 | 1,347,269 |
Equipment trading revenues | 142,969 | 85,780 | 83,993 |
Equipment trading expenses | (108,870) | (70,981) | (69,485) |
Trading margin | 34,099 | 14,799 | 14,508 |
Net gain (loss) on sale of leasing equipment | 107,060 | 37,773 | 27,041 |
Operating expenses: | |||
Depreciation and amortization | 626,240 | 542,128 | 536,131 |
Direct operating expenses | 26,860 | 93,690 | 79,074 |
Administrative expenses | 89,319 | 80,532 | 75,867 |
Provision (reversal) for doubtful accounts | (2,475) | 2,768 | 590 |
Total operating expenses | 739,944 | 719,118 | 691,662 |
Operating income | 935,095 | 641,361 | 697,156 |
Other expenses: | |||
Interest and debt expense | 222,024 | 252,979 | 316,170 |
Write-off of debt costs | 133,853 | 24,734 | 2,543 |
Other (income) expense, net | (1,379) | (4,371) | (2,387) |
Total other expenses | 354,498 | 273,342 | 316,326 |
Income (loss) before income taxes | 580,597 | 368,019 | 380,830 |
Income tax (benefit) expense | 50,357 | 38,240 | 27,551 |
Net income (loss) | 530,240 | 329,779 | 353,279 |
Less: income attributable to non-controlling interest | 0 | 0 | 592 |
Redeemable Preferred Stock Dividends | 45,740 | 41,362 | 13,646 |
Net income (loss) attributable to shareholders | $ 484,500 | $ 288,417 | $ 339,041 |
Net income (loss) per common share—Basic | $ 7.26 | $ 4.18 | $ 4.57 |
Net income (loss) per common share—Diluted | 7.22 | 4.16 | 4.54 |
Cash dividends paid per common share | $ 2.36 | $ 2.13 | $ 2.08 |
Weighted average number of common shares and non-voting common shares outstanding—Basic | 66,728 | 69,051 | 74,190 |
Dilutive stock options and restricted stock | 340 | 294 | 510 |
Weighted average number of common shares and non-voting common shares outstanding—Diluted | 67,068 | 69,345 | 74,700 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 530,240 | $ 329,779 | $ 353,279 |
Other comprehensive income (loss): | |||
Change in derivative instruments designated as cash flow hedges | 55,599 | (123,357) | (42,532) |
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges | 28,722 | 21,927 | (4,039) |
Cumulative effect for the adoption of ASU 2017-12, net of income tax effect | 0 | 0 | 432 |
Foreign currency translation adjustment | (105) | 28 | (57) |
Other comprehensive income (loss), net of tax | 84,216 | (101,402) | (46,196) |
Comprehensive income | 614,456 | 228,377 | 307,083 |
Other comprehensive income attributable to noncontrolling interest | 0 | 0 | 592 |
Dividend on preferred shares | 45,740 | 41,362 | 13,646 |
Comprehensive income attributable to shareholders | 568,716 | 187,015 | 292,845 |
Tax (benefit) provision on change in derivative instruments designated as cash flow hedges | 3,586 | (10,694) | (6,121) |
Tax (benefit) provision on reclassification of (gain) loss on derivative instruments designated as cash flow hedges | 1,916 | 1,144 | (2,009) |
Tax (benefit) provision on cumulative effect for the adoption of ASU 2017-12 | $ 0 | $ 0 | $ 277 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interest [Member] |
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 |
Issuance of preferred shares, net of offering expenses (in shares) | 16,200,000 | |||||||
Issuance of preferred shares, net of offering expenses | 390,768 | $ 405,000 | (14,232) | |||||
Share-based compensation (in shares) | 311,257 | |||||||
Share-based compensation | 8,963 | $ 3 | 8,960 | |||||
Treasury share acquired (in shares) | 6,918,197 | |||||||
Treasury share acquired | (220,396) | $ (220,396) | ||||||
Share repurchase to settle shareholder tax obligations (in shares) | (174,896) | |||||||
Share repurchase to settle shareholder tax obligations | (5,666) | $ (2) | (5,664) | |||||
Net income (loss) | 353,279 | 352,687 | 592 | |||||
Other comprehensive income (loss) | (46,628) | (432) | (46,196) | |||||
Purchase of noncontrolling interests | (103,177) | 16,850 | (120,027) | |||||
Distributions to noncontrolling interests | (2,078) | (2,078) | ||||||
Common shares dividend declared | (155,714) | (155,714) | ||||||
Preferred shares dividend declared | (12,323) | (12,323) | ||||||
Ending balance, shares at Dec. 31, 2019 | 16,200,000 | 80,979,833 | 8,771,345 | |||||
Ending balance at Dec. 31, 2019 | 2,532,237 | $ 405,000 | $ 810 | $ (278,510) | 902,725 | 1,533,845 | (31,633) | 0 |
Issuance of preferred shares, net of offering expenses (in shares) | 6,000,000 | |||||||
Issuance of preferred shares, net of offering expenses | 144,860 | $ 150,000 | (5,140) | |||||
Share-based compensation (in shares) | 225,499 | |||||||
Share-based compensation | 9,896 | $ 3 | 9,893 | |||||
Treasury share acquired (in shares) | 5,129,981 | |||||||
Treasury share acquired | (158,312) | $ (158,312) | ||||||
Share repurchase to settle shareholder tax obligations (in shares) | (53,609) | |||||||
Share repurchase to settle shareholder tax obligations | (2,156) | $ (1) | (2,155) | |||||
Net income (loss) | 329,779 | 329,779 | 0 | |||||
Other comprehensive income (loss) | (101,402) | 0 | (101,402) | |||||
Common shares dividend declared | (148,021) | (148,021) | ||||||
Preferred shares dividend declared | (40,933) | (40,933) | ||||||
Ending balance, shares at Dec. 31, 2020 | 22,200,000 | 81,151,723 | 13,901,326 | |||||
Ending balance at Dec. 31, 2020 | 2,565,948 | $ 555,000 | $ 812 | $ (436,822) | 905,323 | 1,674,670 | (133,035) | 0 |
Issuance of preferred shares, net of offering expenses (in shares) | 7,000,000 | |||||||
Issuance of preferred shares, net of offering expenses | 168,823 | $ 175,000 | (6,177) | |||||
Share-based compensation (in shares) | 231,383 | |||||||
Share-based compensation | 9,365 | $ 2 | 9,363 | |||||
Treasury share acquired (in shares) | 1,528,173 | |||||||
Treasury share acquired | (85,538) | $ (85,538) | ||||||
Share repurchase to settle shareholder tax obligations (in shares) | (87,740) | |||||||
Share repurchase to settle shareholder tax obligations | (4,286) | $ (1) | (4,285) | |||||
Net income (loss) | 530,240 | 530,240 | 0 | |||||
Other comprehensive income (loss) | 84,216 | 0 | 84,216 | |||||
Common shares dividend declared | (158,735) | (158,735) | ||||||
Preferred shares dividend declared | (45,321) | (45,321) | ||||||
Ending balance, shares at Dec. 31, 2021 | 29,200,000 | 81,295,366 | 15,429,499 | |||||
Ending balance at Dec. 31, 2021 | $ 3,064,712 | $ 730,000 | $ 813 | $ (522,360) | $ 904,224 | $ 2,000,854 | $ (48,819) | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 530,240 | $ 329,779 | $ 353,279 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 626,240 | 542,128 | 536,131 |
Debt related amortization | 11,603 | 12,973 | 12,806 |
Lease related amortization | 17,654 | 23,878 | 41,926 |
Share-based compensation expense | 9,365 | 9,896 | 8,963 |
Net (gain) loss on sale of leasing equipment | (107,060) | (37,773) | (27,041) |
Unrealized (gain) loss on derivative instruments | 0 | 286 | 3,107 |
Write-off of debt costs | 133,853 | 24,734 | 2,543 |
Deferred income taxes | 43,077 | 35,662 | 27,181 |
Changes in operating assets and liabilities: | |||
Accounts receivables | (50,336) | (9,955) | 51,242 |
Deferred revenue | 83,600 | 90 | 3,637 |
Accounts payable and other accrued expenses | (6,860) | (28,360) | 3,963 |
Net equipment sold (purchased) for resale activity | 7,606 | 14,503 | (3,837) |
Cash received (paid) for settlement of interest rate swaps | 5,497 | (5,074) | (22,330) |
Cash collections on finance lease receivables, net of income earned | 74,117 | 78,333 | 72,721 |
Other assets | 26,568 | (47,348) | (2,385) |
Net cash provided by operating activities | 1,405,164 | 943,752 | 1,061,906 |
Cash flows from investing activities: | |||
Purchases of leasing equipment and investments in finance leases | (3,434,394) | (744,129) | (240,170) |
Proceeds from sale of equipment, net of selling costs | 217,078 | 255,104 | 217,296 |
Other | (70) | 8 | (846) |
Net cash (used in) investing activities | (3,217,386) | (489,017) | (23,720) |
Cash flows from financing activities: | |||
Issuance of preferred shares, net of underwriting discount | 169,488 | 145,275 | 392,242 |
Purchases of Treasury Shares | (82,528) | (158,312) | (222,236) |
Debt issuance costs | (42,631) | (26,814) | (8,751) |
Borrowings under debt facilities | 8,690,006 | 3,495,445 | 1,697,200 |
Payments under debt facilities and capital lease obligations | (6,635,987) | (3,737,150) | (2,608,960) |
Dividends paid on preferred shares | (45,321) | (40,933) | (12,323) |
Common stock dividends paid | (157,312) | (146,476) | (153,861) |
Distributions to noncontrolling interests | 0 | 0 | (2,078) |
Purchase of noncontrolling interests | 0 | 0 | (103,039) |
Other | (4,951) | (2,746) | (6,947) |
Net Cash Provided by (Used in) Financing Activities | 1,890,764 | (471,711) | (1,028,753) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 78,542 | (16,976) | 9,433 |
Cash, cash equivalents and restricted cash, beginning of period | 151,996 | 168,972 | 159,539 |
Cash, cash equivalents and restricted cash, end of period | 230,538 | 151,996 | 168,972 |
Supplemental disclosures: | |||
Interest paid | 211,412 | 244,280 | 306,827 |
Income taxes (refunded) paid | 7,933 | 2,191 | (895) |
Right-of-use asset for leased property | 2,517 | 543 | 7,616 |
Supplemental non-cash investing activities: | |||
Equipment purchases payable | $ 429,568 | $ 191,777 | $ 24,685 |
Description of the Business and
Description of the Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Basis of Presentation | Note 1—Description of the Business and Basis of Presentation Description of the Business and Basis of Presentation Triton International Limited ("Triton" or the "Company"), through its subsidiaries, leases intermodal transportation equipment, primarily maritime containers, and provides maritime container management services through a worldwide network of service subsidiaries, third-party depots and other facilities. The majority of 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and subsidiaries in which it has a controlling interest, and variable interest entities of which the Company is the primary beneficiary. The equity method of accounting is applied when the Company does not have a controlling interest in an entity but exerts significant influence over the entity. All significant intercompany balances and transactions have been eliminated in consolidation. 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. Segment Reporting The Company conducts its business activities in one industry, intermodal transportation equipment, and has two reporting segments, Equipment leasing and Equipment trading. The Company also segregates total equipment leasing revenues and total equipment trading revenues by geographic location based upon the primary domicile of the Company's customers. 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 largest customer accounted for 21%, 22%, and 21% of its lease billings during 2021, 2020, and 2019, respectively, and accounted for 26% and 23% of its accounts receivable as of December 31, 2021 and 2020, respectively. The Company's second largest customer accounted for 16% of its lease billings during 2021 and 14% during both 2020 and 2019, and accounted for 11% of its accounts receivable as of December 31, 2021 and 6% as of December 31, 2020. The Company's third largest customer accounted for 10%, 9.0%, and 5.0% of its lease billings during 2021, 2020, and 2019, respectively, and accounted for 5% of its accounts receivable as of both December 31, 2021 and 2020. Other financial instruments that are exposed to concentration of credit risk are cash and cash equivalents, and restricted cash balances. Cash and cash equivalents, and restricted cash are held with financial institutions of high quality. Balances may exceed the amount of insurance provided on such deposits. Fair Value Measurements Fair value represents the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The determination of fair value may require an entity to make significant judgments or develop assumptions about market participants to reflect risks specific to the asset being valued. 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. 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 equipment held for sale, debt, and the fair value of derivative instruments, please refer to Note 3 - "Equipment Held for Sale", Note 6 - "Debt" and Note 7 - "Derivative Instruments", respectively. Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments having original maturities of three months or less at the time of purchase. Restricted Cash The Company's restricted cash relates to amounts held at financial institutions pursuant to certain debt arrangements. The restricted cash balances represent cash proceeds collected and required to be used to pay debt service and other related expenses. Allowance for Doubtful Accounts The Company's allowance for doubtful accounts is estimated based upon a review of the collectability of its receivables. This review is based on the risk profile of the receivables, credit quality indicators such as the level of past-due amounts and economic conditions. Generally, the Company does not require collateral on accounts receivable balances. An account is considered past due when a payment has not been received in accordance with the contractual terms. Changes in economic conditions or other events may necessitate additions or deductions to the allowance for doubtful accounts. The allowance for doubtful accounts is intended to provide for losses in the receivables, and requires the application of estimates and judgments as to the outcome of collection efforts, among other things. The Company believes its allowance for doubtful accounts is adequate to provide for credit losses inherent in its existing receivables. For our net investment in finance leases and accounts receivable for sales of equipment, the Company measures expected credit loss by evaluating the overall credit quality of its customers. Expected credit losses for these financial assets are estimated using historical experience which includes multiple economic cycles, customer payment history, management's assessment of the customer's financial condition, and consideration of current conditions and reasonable forecasts. Net Investment in Finance Leases The Company has entered into various lease agreements that qualify as finance leases. These leases are long-term in nature, ranging for a period of three to fourteen years, and typically include an option to purchase the equipment at the end of the lease term for a nominal price that the Company deems reasonably certain to be exercised. At the inception of a finance lease, a net investment is recorded based on the gross investment (representing the total future minimum lease payments plus the estimated residual value), net of unearned income. Unearned income represents the excess of the gross investment over the fair value of the leased equipment at lease commencement. Any gain or loss is recognized at commencement and recorded in Net gain on sale of leasing equipment. Leasing Equipment The Company purchases new equipment from equipment manufacturers for the purpose of leasing such equipment to customers. The Company also purchases used equipment with the intention of selling such equipment in one or more years from the date of purchase. Leasing equipment is recorded at cost and depreciated to an estimated residual value on a straight-line basis over the estimated useful lives. Capitalized costs for new container rental equipment include the manufactured cost of the container, inspection, delivery, and associated costs incurred in moving the container from the manufacturer to the initial on-hire location of such container. Repair and maintenance costs that do not extend the lives of the container rental equipment are charged to direct operating expenses at the time the costs are incurred. The estimated useful lives and residual values of the Company's leasing equipment are based on the Company's expectations for future used container sale prices. The Company evaluates estimates used in its depreciation policies on a regular basis to determine whether changes have taken place that would suggest that a change in its depreciation estimates for useful lives or the assigned residual values of its equipment is warranted. For 2021, the Company completed its annual depreciation policy assessment during the fourth quarter and concluded no change was necessary. The estimated useful lives and residual values for each major equipment type for the periods indicated below were as follows: As of December 31, 2021 and 2020 Equipment Type Depreciable Life Residual Value Dry containers 20-foot dry container 13 years $ 1,000 40-foot dry container 13 years $ 1,200 40-foot high cube dry container 13 years $ 1,400 Refrigerated containers 20-foot refrigerated container 12 years $ 2,350 40-foot high cube refrigerated container 12 years $ 3,350 Special containers 40-foot flat rack container 16 years $ 1,700 40-foot open top container 16 years $ 2,300 Tank containers 20 years $ 3,000 Chassis 20 years $ 1,200 Depreciation on leasing equipment commences on the date of initial on-hire. For leasing equipment purchased for resale that may be leased for a period of time, the Company adjusts its estimates for remaining useful life and residual values based on our expectations for how long the equipment will remain on-hire to the current lessee and the expected sales market for older containers when these units are redelivered. The net book value of the Company's leasing equipment by equipment type as of the dates indicated was (in thousands): December 31, 2021 December 31, 2020 Dry container $ 8,087,346 $ 6,589,960 Refrigerated container 1,556,673 1,483,820 Special container 297,925 307,765 Tank container 102,220 97,982 Chassis 156,949 151,169 Total $ 10,201,113 $ 8,630,696 Included in the amounts above are units not on lease at December 31, 2021 and 2020 with a total net book value of $391.3 million and $173.2 million, respectively. A large majority of the units not on lease at December 31, 2021 are recently purchased equipment. Valuation of Leasing Equipment Leasing equipment is evaluated for impairment whenever events or changes in circumstances indicate that its carrying value may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying value to its estimated undiscounted future cash flows expected to be generated by the asset. If the carrying value of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying value of the asset exceeds the fair value of the asset. Key indicators of impairment on leasing equipment include, among other factors, a sustained decrease in operating profitability, a sustained decrease in utilization, or indications of technological obsolescence. When testing for impairment, leasing equipment is generally grouped by equipment type, and is tested separately from other groups of assets and liabilities. Some of the significant estimates and assumptions used to determine future undiscounted cash flows and the measurement for impairment are the remaining useful life, expected utilization, expected future lease rates and expected disposal prices of the equipment. The Company considers the assumptions on expected utilization and the remaining useful life to have the greatest impact on its estimate of future undiscounted cash flows. These estimates are principally based on the Company's historical experience and management's judgment of market conditions. The Company did not record any impairment charges related to leasing equipment for the years ended December 31, 2021, 2020, and 2019. Equipment Held for Sale When leasing equipment is returned off lease, the Company makes a determination of whether to repair and re-lease the equipment or sell the equipment. At the time the Company determines that equipment will be sold, it reclassifies the carrying value of leasing equipment to equipment held for sale. Equipment held for sale is recorded at the lower of its estimated fair value less costs to sell or carrying value at the time identified for sale. Depreciation expense on equipment held for sale is halted and disposals generally occur within 90 days. Initial write downs of equipment held for sale to fair value are recorded as an impairment charge and are included in Net gain on sale of leasing equipment. Subsequent increases or decreases to the fair value of those assets are recorded as adjustments to the carrying value of the equipment held for sale, however, any such adjustments may not exceed the respective equipment's carrying value at the time it was initially classified as held for sale. Realized gains and losses resulting from the sale of equipment held for sale are recorded in Net gain on sale of leasing equipment, and cash flows associated with the disposal of equipment held for sale are classified as cash flows from investing activities. Equipment recorded within our equipment trading segment is also included in Equipment held for sale. Gains and losses resulting from the sale of this equipment is recorded in Trading margin, and cash flows associated with the sale of this equipment are classified as cash flows from operating activities. Operating Leases The Company leases office space and office equipment and evaluates whether these leases are classified as operating or financing at the inception of the lease. The classification is 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 payments and a 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. The benefits of lease incentives, including rent-free or reduced rent periods, and the cost of future rent escalations are recognized on a straight-line basis over the term of the lease. A lease liability and a corresponding ROU asset are not recognized when, at the commencement date of the lease, the term is 12 months or less. Property, Furniture and Equipment Costs of major additions of property, furniture, equipment and improvements are capitalized and are included in Other assets on the consolidated balance sheets. The original cost is depreciated on a straight-line basis over the estimated useful lives of such property, furniture and equipment. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated useful lives of the leased assets. Other fixed assets, which consist primarily of computer software and hardware, are recorded at cost and amortized on a straight-line basis over their respective estimated useful lives, which range from three Goodwill Goodwill is tested for impairment at least annually on October 31 of each fiscal year or more frequently if events occur or circumstances exist that indicate that the fair value of a reporting unit may be below its carrying value. Goodwill has been allocated to the Company's reporting units, which are the same as its reporting segments. In evaluating goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether further impairment testing is necessary. Among the relevant events and circumstances that affect the fair value of reporting units, the Company considers individual factors such as macroeconomic conditions, changes in its industry and the markets in which the Company operates, as well as its reporting units' historical and expected future financial performance. If, after assessing the totality of events or circumstances, the Company determines it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, then the quantitative goodwill impairment test is unnecessary. The quantitative goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit is less than its fair value, no impairment exists. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The Company elected to perform the qualitative assessment for its evaluation of goodwill impairment during the year ended December 31, 2021 and concluded there was no impairment. For the years ended December 31, 2021, 2020, and 2019, the Company did not record any goodwill impairments. Intangible Assets Intangible assets with finite useful lives such as acquired lease intangibles are initially recorded at fair value and are amortized over their respective estimated useful lives and subsequently reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company has not recorded any impairment charges related to intangible assets for the years ended December 31, 2021, 2020, and 2019. Revenue Recognition Operating Leases with Customers The Company enters into long-term leases and service leases with ocean carriers, principally as lessor in operating leases, for marine cargo equipment. Long-term leases provide customers with specified equipment for a specified term. The Company's leasing revenues are based upon the number of equipment units leased, the applicable per diem rate and the length of the lease. Long-term leases typically have initial contractual terms ranging from five eight The Company recognizes billings to customers for damages and certain other operating costs as leasing revenue when earned based on the terms of the contractual agreements with the customer. Finance Leases with Customers The Company enters into finance leases as lessor for some of the equipment in its fleet. At the inception of the lease, the Company records the total future minimum lease payments plus the estimated residual value, net of executory costs, if any. Cash deposits reduce the net finance lease receivable and are recorded on the statement of cash flows as deferred revenue within operating activities. The net investment in finance leases represents the receivables due from lessees, net of unearned income and amounts previously billed, which are included in accounts receivable. Unearned income, which also includes any initial direct costs, is recognized on a constant yield basis over the lease term and is recorded as leasing revenue. The Company's finance leases are usually long-term in nature and typically include an option to purchase the equipment at the end of the lease term for a nominal price that the Company deems reasonably certain to be exercised. Equipment Trading Revenues and Expenses Equipment trading revenues represent the proceeds from the sale of equipment purchased for resale and are recognized as units are sold. The related expenses represent the cost of equipment sold as well as other selling costs that are recognized as incurred and are reflected as equipment trading expenses on the consolidated statements of operations. Direct Operating Expenses Direct operating expenses are directly related to the Company's equipment under and available for lease. These expenses primarily consist of the Company's costs to repair and maintain the equipment, to reposition the equipment and to store the equipment when it is not on lease. These costs are recognized when incurred. Certain positioning costs may be capitalized when incurred to place new equipment on an initial lease. Debt Costs Debt costs represent the fees incurred in connection with debt obligation arrangements. These costs are capitalized and amortized using the effective interest method or on a straight-line basis over the term of the related obligation, depending on the type of debt obligation to which they relate. Unamortized debt costs may be written off when the related debt obligations are refinanced or extinguished prior to maturity. Derivative Instruments The Company primarily uses derivatives in the management of its interest rate exposure on its long-term borrowings. The Company records derivative instruments on its balance sheet at fair value and establishes criteria for both the designation and effectiveness of hedging activities. The Company has entered into interest rate swap agreements with certain financial institutions. The interest rate swap agreements require the Company to make payments to counterparties at fixed rates in return for receipts based upon variable rates indexed to the London Interbank Offered Rate ("LIBOR") or its replacement rate. Derivative instruments are designated or non-designated for hedge accounting purposes. The fair value of the derivative instruments is measured at each balance sheet date and is reflected on a gross basis on the consolidated balance sheets. The change in fair value of the derivative instruments designated as a cash flow hedge are recorded on the consolidated balance sheets in accumulated other comprehensive income (loss) and are re-classified to interest and debt expense when the hedged interest payments are recognized. The change in fair value of non-designated derivative instruments is recorded in the consolidated statements of operations as other (income) expense, net. Income Taxes The Company uses the liability method of accounting for income taxes, which requires recognition of deferred tax assets and liabilities based on the expected future tax consequences of temporary differences that currently exist between the tax basis and financial reporting basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any change in the tax rate which has an effect on deferred tax assets and liabilities is recognized as an increase or decrease to income in the period that includes the enactment date of the law that resulted in the change in tax rate. The Company recognizes the effect of income tax positions which are more-likely-than-not of being sustained. If a position does not meet the more-likely-than-not criteria, the Company records a reserve against the tax position such that a tax benefit is recognized only in the amount that has a greater than 50% likelihood of being recognized. The full impact of any change in recognition or measurement of an uncertain tax position is reflected in the period in which such change occurs. Potential interest and penalties associated with such uncertain tax positions are recorded as a component of income tax expense. Non-controlling Interests During 2019, the Company acquired all of the remaining third-party partnership interests in Triton Container Investments LLC ("TCI"), a fully consolidated entity, for an aggregate of $103.0 million in cash and recognized a benefit of $16.9 million in the consolidated statements of shareholders' equity. Foreign Currency Translation and Re-measurement The Company uses the U.S. dollar as its reporting currency. The net assets and operations that are denominated in foreign currency and are subject to foreign currency translation included in the consolidated financial statements are attributable primarily to the Company's U.K. subsidiary. The accounts of this subsidiary have been converted at rates of exchange in effect at year end as to balance sheet accounts and at the annual weighted average exchange rates for the statements of operations accounts. The effects of changes in exchange rates in translating foreign subsidiaries' financial statements are included in shareholders' equity as accumulated other comprehensive (loss) income. The Company also has certain cash accounts, certain finance lease receivables and certain obligations that are denominated in currencies other than the Company's functional currency. These assets and liabilities are generally denominated in euros or British pounds, and are re-measured at each balance sheet date at the exchange rates in effect as of those dates. The impact of changes in exchange rates on the re-measurement of assets and liabilities are included in administrative expenses on the consolidated statements of operations. Net foreign currency exchange gains or losses was a loss of $1.0 million for the year ended December 31, 2021, a gain of $0.4 million for the year ended December 31, 2020 and a loss of $0.8 million for the year ended December 31, 2019. Share-based Compensation The Company measures and recognizes share-based awards granted to employees based on the grant date fair value. Share-based awards may be subject to forfeiture if certain employment conditions are not met. The Company has elected to account for forfeitures as they occur. Time based awards are measured at the grant date and are recognized as compensation expense over the employee's requisite service period, generally the vesting period of the equity award, on a straight-line basis. Performance-based awards are recognized as compensation expense when satisfaction of the performance condition is considered probable. The Company also grants share-based awards to non-employee directors that vest immediately and are recognized as compensation expense based on the grant date fair value. Earnings Per Share Basic earnings per share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Any potential issuance of common shares, including those that are contingent and do not participate in dividends, are excluded from the weighted average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that would occur if securities exercisable or convertible into common shares were exercised or converted into common shares, utilizing the treasury share method. The Company excluded a de minimus amount of anti-dilutive restricted common shares from its calculation of diluted earnings per share for the years ended December 31, 2021, 2020, and 2019. Recently Issued Accounting Standards Update Lessors - Certain Leases with Variable Lease Payments |
Equipment Held for Sale
Equipment Held for Sale | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Equipment Held for Sale | Equipment Held for Sale The Company's equipment held for sale is recorded at the lower of fair value less cost to sell, or carrying value at the time identified for sale. Fair value is measured using Level 2 inputs and is based predominantly on recent sales prices. The following table summarizes the portion of equipment held for sale in the consolidated balance sheet that have been impaired and written down to fair value less cost to sell (in thousands): December 31, 2021 December 31, 2020 Equipment held for sale $ 239 $ 4,001 An impairment charge is recorded when the carrying value of the asset exceeds its fair value less cost to sell. The following table summarizes the Company's net impairment charges recorded in Net gain on sale of leasing equipment on the consolidated statements of operations (in thousands): Year Ended December 31, 2021 2020 2019 Impairment (loss) reversal on equipment held for sale $ 16 $ (3,532) $ (5,299) Gain (loss) on sale of equipment, net of selling costs 107,044 41,305 32,340 Net gain on sale of leasing equipment $ 107,060 $ 37,773 $ 27,041 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of lease intangibles for leases acquired with lease rates above market in a business combination. The following table summarizes the amortization of intangible assets as of December 31, 2021 (in thousands): Years ending December 31, Total Intangible Assets 2022 $ 10,497 2023 4,657 2024 1,963 Total $ 17,117 Amortization expense related to intangible assets was $16.5 million, $22.5 million, and $37.5 million for the years ended December 31, 2021, 2020, and 2019, respectively. |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | Restricted Cash The components of restricted cash as of December 31, 2021 and December 31, 2020 were as follows (in thousands): December 31, 2021 December 31, 2020 Collection accounts $ 37,372 $ 27,673 Trust accounts 31,628 19,001 Other restricted cash accounts 55,370 43,810 Total restricted cash $ 124,370 $ 90,484 Collection accounts Pursuant to certain debt agreements, the Company maintains bank accounts for collections related to certain containers that are financed ("the Collection Accounts"). Cash proceeds collected from leasing and disposition are deposited into the Collection Accounts. Similarly, all expenses related to the operation of the containers are paid from the Collection Accounts. Trust accounts Pursuant to certain debt agreements, cash is transferred from the Collection Accounts to separate accounts (the "Trust Accounts"). The Trust Accounts are maintained by the Company on behalf of certain Asset Backed Securitization ("ABS") noteholders. The cash in the Trust Accounts is used to pay related ABS debt service and related expenses. After such payments, any remaining cash in these accounts is transferred to certain unrestricted bank accounts of the Company and is included in cash and cash equivalents on the consolidated balance sheets. Other restricted cash accounts |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 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) December 31, 2021 December 31, 2020 From To Asset-backed securitization term notes 1.98% Aug 2023 Feb 2031 $ 3,801,777 $ 2,920,807 Institutional notes —% — — — 1,642,314 Corporate notes 1.82% Aug 2023 Jun 2031 2,300,000 — Term loan facilities 1.49% May 2026 May 2026 1,176,000 840,000 Asset-backed securitization warehouse 1.95% Nov 2027 Nov 2027 225,000 264,000 Revolving credit facilities 1.48% Oct 2026 Oct 2026 1,112,000 760,500 Finance lease obligations 4.93% Feb 2022 Feb 2022 15,042 17,304 Total debt outstanding 8,629,819 6,444,925 Unamortized debt costs (63,794) (42,747) Unamortized debt premiums & discounts (3,508) (599) Unamortized fair value debt adjustment — 1,691 Debt, net of unamortized costs $ 8,562,517 $ 6,403,270 (1) Data as of December 31, 2021. The fair value of total debt outstanding was $8,572.9 million and $6,536.5 million as of December 31, 2021 and December 31, 2020, respectively, and was measured using Level 2 inputs. As of December 31, 2021, the maximum borrowing levels for the ABS warehouse and the revolving credit facilities are $1,125.0 million and $2,000.0 million, respectively. These facilities are governed by either borrowing bases or an unencumbered asset test that limits borrowing capacity. As of December 31, 2021, the availability under these credit facilities without adding additional assets to the borrowing base was approximately $1,034.2 million. The Company is subject to certain financial covenants under its debt agreements. As of December 31, 2021 and December 31, 2020, 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 debt 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-rate and floating-rate debt as of December 31, 2021 (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 $5,513,840 1.95% Feb 2022 Jun 2031 4.7 years Floating-rate debt $3,115,979 1.56% Aug 2023 Nov 2027 3.9 years Including impact of derivative instruments: Fixed-rate debt $5,513,840 1.95% Hedged floating-rate debt 1,929,729 3.34% Total fixed and hedged debt 7,443,569 2.31% Unhedged floating-rate debt 1,186,250 1.56% Total $8,629,819 2.21% The Company issued the following corporate notes during the year ended December 31, 2021: Date Total Offering Contractual Interest Rate Maturity April 15, 2021 $600.0 Million 2.05% Apr 2026 June 7, 2021 $500.0 Million 1.15% Jun 2024 June 7, 2021 $600.0 Million 3.15% Jun 2031 August 6, 2021 $600.0 Million 0.80% Aug 2023 The Company issued the following ABS fixed rate series during the year ended December 31, 2021: Date Total Offering Contractual Weighted Avg Interest Rate Expected Maturity February 3, 2021 $502.9 Million 1.69% Feb 2031 March 17, 2021 $725.0 Million 1.89% Dec 2030 On May 27, 2021, the Company extinguished a term loan and paid the outstanding balance of $820.0 million. As a result, the Company wrote off $1.8 million of debt related costs. Concurrently, the Company entered into a delayed draw term loan facility with a maximum capacity of $1,200.0 million at an interest rate of 1-month LIBOR plus 1.375% and a maturity date of May 27, 2026. On June 28, 2021, the Company redeemed approximately $821.0 million of its outstanding institutional notes. As a result, the Company paid a make-whole premium of $84.8 million and wrote off $2.5 million of debt related costs. The cash paid for the make-whole premium is classified under financing cash flows as payments under debt facilities and finance lease obligations. On August 30, 2021, the Company redeemed the remaining $648.9 million of its outstanding institutional notes. As a result, the Company paid a make-whole premium of $43.1 million and recognized a gain of $0.6 million from the write-off of unamortized debt costs and fair value adjustments. The cash paid for the make-whole premium is classified under financing cash flows as payments under debt facilities and finance lease obligations. On October 14, 2021, the Company amended its revolving facility which increased its borrowing capacity to $2,000.0 million. As a result, the company wrote off $0.7 million of debt related costs. Additionally on this date, the Company prepaid a term loan and a revolving facility, which resulted in an additional write off of $0.6 million of debt related costs. Asset-Backed Securitization Term Notes Under the Company's ABS facilities, indirect wholly-owned subsidiaries of the Company issue ABS notes. These subsidiaries 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. Institutional Notes The Company's institutional notes were fully redeemed during the year ended December 31, 2021. Corporate Notes The Company’s corporate notes are unsecured and have maturities ranging from 2 -10 years and interest payments due semi-annually. The corporate notes are pre-payable (in whole or in part) at the Company's option at any time prior to the maturity date, subject to certain provisions in the corporate note agreements, including the payment of a make-whole premium in respect to such prepayment. Term Loan Facility The Company's term loan facility has a maturity date of May 27, 2026, which amortizes in quarterly installments. This facility is subject to covenants customary for unsecured financings of this type, primarily financial covenants that require us to maintain a maximum ratio of unencumbered assets to certain financial indebtedness. Asset-Backed Securitization Warehouse Under the Company's ABS warehouse facility, an indirect wholly-owned subsidiary of the Company issues ABS notes. This subsidiary 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 ABS warehouse facility has a borrowing capacity of $1,125.0 million that is available on a revolving basis until November 13, 2023, paying interest at LIBOR plus 1.85%, after which any borrowings will convert to term notes with a maturity date of November 15, 2027, 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 Facility The revolving credit facility has a maturity date of October 14, 2026, and has a maximum borrowing capacity of $2,000.0 million. This facility is subject to covenants customary for unsecured financings of this type, primarily financial covenants that require us to maintain a maximum ratio of unencumbered assets to certain financial indebtedness. Finance Lease Obligations Certain containers are leased with a financial institution. The lease is accounted for as a finance lease, with interest expense recognized on a level yield basis over the period preceding early purchase options, which is five Debt Maturities At December 31, 2021, the Company's scheduled principal repayments and maturities, including finance lease obligations, were as follows (in thousands): Years ending December 31, 2022 $ 477,618 2023 1,230,460 2024 1,254,012 2025 430,497 2026 2,838,602 2027 and thereafter 2,398,630 Total $ 8,629,819 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Interest Rate Swaps / Caps 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 the Company's exposure to rising interest rates by placing a ceiling on the rate that will be paid under certain floating-rate debt agreements. 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. Certain assets of the Company's subsidiaries are pledged as collateral for various ABS facilities and the amounts payable under certain derivative agreements. Additionally, the Company may be required to post cash collateral on these agreements. Any amounts of cash collateral posted 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 December 31, 2021, the Company has cash collateral of $17.0 million related to interest rate swap contracts. During the year ended December 31, 2021, the Company entered into the following hedging instruments: Derivative Instrument Date Effective Notional Amount Fixed Leg (Pay) Interest Rate Indexed To Scheduled Maturity Interest rate cap May 24, 2021 $200.0 million n/a 1 month LIBOR November 13, 2023 Interest rate swap October 29, 2021 $300.0 million 1.21% 1 month LIBOR October 29, 2031 (1) (1) Mandatory termination date of July 29, 2022. In conjunction with the issuance of ABS notes, the Company canceled the following interest rate swaps that were in place to hedge the impact of interest rate changes on fixed-rate debt issuances: Derivative Instrument Date Canceled Notional Amount Funds Received Interest rate swap January 25, 2021 $150.0 million $0.3 million Interest rate swap January 27, 2021 $150.0 million $0.3 million Interest rate swap February 19, 2021 $150.0 million $2.4 million Interest rate swap February 19, 2021 $150.0 million $2.4 million On April 15, 2021, the Company canceled and simultaneously entered into an interest rate swap with a notional amount of $93.8 million. The Company paid $0.1 million for the cancellation of the existing contract. The new contract has a scheduled maturity date of April 20, 2024 and is indexed to 1 month LIBOR with a fixed leg interest rate of 0.25%. In conjunction with the redemption of the institutional notes, the Company entered into and subsequently canceled the following interest rate swaps that were in place to hedge the impact of interest rate changes related to the make-whole premium payment during the notification period. The settlement of these swaps of $0.9 million is presented in debt termination expense on the consolidated statement of operations and in payments under debt facilities and finance lease obligations within the financing section of the consolidated statement of cash flows. Derivative Instrument Date Canceled Notional Amount Funds Received (Paid) Interest rate swap June 25, 2021 $72.5 million $— million Interest rate swap June 25, 2021 $195.9 million $(0.9) million As of December 31, 2021, the Company had interest rate swap and cap agreements in place to fix or limit the floating interest rates on a portion of the borrowings under its debt facilities summarized below: Derivatives Notional Amount Weighted Average Cap Rate Weighted Average Interest Rate Swap (1) $1,929.7 million 1.9% n/a 5.1 years Interest Rate Cap $400.0 million n/a 5.5% 1.9 years (1) The impact of forward starting swaps will increase total notional amount by $350.0 million and increase the weighted average remaining term to 6.0 years. Unrealized losses of $24.7 million related to interest rate swap and cap agreements included in accumulated other comprehensive income (loss) are expected to be recognized in Interest and debt expense over the next twelve months. 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): Year Ended December 31, Financial statement caption 2021 2020 2019 Non-Designated Derivative Instruments Realized (gains) losses Other (income) expense, net $ — $ (224) $ (2,237) Realized (gains) losses Debt termination expense $ 883 $ — $ — Unrealized (gains) losses Other (income) expense, net $ — $ 286 $ 3,107 Designated Derivative Instruments Realized (gains) losses Interest and debt (income) expense $ 30,638 $ 23,071 $ (6,048) Unrealized (gains) losses Comprehensive (income) loss $ (59,185) $ 134,051 $ 48,653 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 values to a single discounted present value. 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 and credit risk at commonly quoted intervals). In response to the expected phase out of LIBOR, the Company continues to work with its counterparties to identify an alternative reference rate. Substantially all of the Company's debt agreements already include transition language, and the Company also adopted various practical expedients which will facilitate the transition. The Company presents the fair value of derivative financial instruments on a gross basis as a separate line item on the consolidated balance sheet. As of December 31, 2021 and 2020, the Company has no material non-designated instruments. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Lessee The Company's leases are primarily for 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. The weighted average implicit rate was 3.50% and 4.04% for the years ended December 31, 2021 and 2020, respectively and the weighted average remaining lease term was 2.1 years and 2.6 years for the years ended December 31, 2021 and 2020, respectively. The following table summarizes the impact of the Company's leases in its financial statements (in thousands): Balance Sheet Financial statement caption December 31, 2021 December 31, 2020 Right-of-use asset - operating Other assets $ 5,099 $ 5,062 Lease liability - operating Accounts payable and other accrued expenses $ 5,790 $ 6,088 Income Statement Financial statement caption Year Ended Year Ended Year Ended December 31, 2019 Operating lease cost (1) Administrative expenses $ 3,183 $ 3,005 $ 3,012 (1) Includes short-term leases that are immaterial. Cash paid for amounts of lease liabilities included in operating cash flows was $3.3 million, $3.1 million, and $3.2 million for the years ended December 31, 2021, 2020, and 2019, respectively. The following represents our future undiscounted cash flows related to lease liabilities for each of the next five years and thereafter as of December 31, 2021 (in thousands): Years ending December 31, 2022 $ 3,257 2023 2,132 2024 450 2025 134 2026 — 2027 and thereafter — Total undiscounted future cash flows related to lease payments $ 5,973 Less: imputed interest (183) Total present value of lease liability $ 5,790 Lessor Operating Leases The following is the minimum future rental income as of December 31, 2021 under non-cancelable operating leases, assuming the minimum contractual lease term (in thousands): Years ending December 31, 2022 $ 1,133,267 2023 948,074 2024 796,752 2025 663,274 2026 504,396 2027 and thereafter 1,581,217 Total $ 5,626,980 As of December 31, 2021, the Company has deferred revenue balances related to leases with uneven payment terms. We expect to amortize these amounts into revenue as follows (in thousands): Years ending December 31, 2022 $ 6,677 2023 9,432 2024 11,938 2025 11,611 2026 11,013 2027 and thereafter 41,527 Total $ 92,198 Finance Leases The following table summarizes the components of the net investment in finance leases (in thousands): December 31, 2021 December 31, 2020 Future minimum lease payment receivable (1) $ 2,122,165 $ 355,755 Estimated residual receivable (2) 205,994 53,892 Gross finance lease receivables (3) 2,328,159 409,647 Unearned income (4) (769,869) (127,516) Net investment in finance leases (5) $ 1,558,290 $ 282,131 (1) There were no executory costs included in gross finance lease receivables as of December 31, 2021 and December 31, 2020. (2) The Company's finance leases generally include a purchase option at nominal amounts that is reasonably certain to be exercised, and therefore, the Company has immaterial residual value risk for assets. (3) The gross finance lease receivable is reduced as billed to customers and reclassified to accounts receivable until paid by customers. (4) There were no unamortized initial direct costs as of December 31, 2021 and December 31, 2020. (5) One major customer represented 91% and 75% of the Company's finance lease portfolio as of December 31, 2021 and 2020, respectively. No other customer represented more than 10% of the Company's finance lease portfolio in each of those years. Maturities of the Company's gross finance lease receivables subsequent to December 31, 2021 are as follows (in thousands): Years ending December 31, 2022 $ 202,217 2023 188,577 2024 185,251 2025 184,123 2026 181,847 2027 and thereafter 1,386,144 Total $ 2,328,159 The Company’s finance lease portfolio lessees are primarily comprised of the largest international shipping lines. In its estimate of expected credit losses, the Company evaluates the overall credit quality of its finance lease portfolio. 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. These allowances are based on, but not limited to, historical experience which includes stronger and weaker economic cycles, each lessee's payment history, management's current assessment of each lessee's financial condition, consideration of current economic conditions and reasonable market forecasts. As of December 31, 2021 and December 31, 2020 the Company does not have an allowance on its gross finance lease receivables and does not have any material past due balances. |
Leases | Leases Lessee The Company's leases are primarily for 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. The weighted average implicit rate was 3.50% and 4.04% for the years ended December 31, 2021 and 2020, respectively and the weighted average remaining lease term was 2.1 years and 2.6 years for the years ended December 31, 2021 and 2020, respectively. The following table summarizes the impact of the Company's leases in its financial statements (in thousands): Balance Sheet Financial statement caption December 31, 2021 December 31, 2020 Right-of-use asset - operating Other assets $ 5,099 $ 5,062 Lease liability - operating Accounts payable and other accrued expenses $ 5,790 $ 6,088 Income Statement Financial statement caption Year Ended Year Ended Year Ended December 31, 2019 Operating lease cost (1) Administrative expenses $ 3,183 $ 3,005 $ 3,012 (1) Includes short-term leases that are immaterial. Cash paid for amounts of lease liabilities included in operating cash flows was $3.3 million, $3.1 million, and $3.2 million for the years ended December 31, 2021, 2020, and 2019, respectively. The following represents our future undiscounted cash flows related to lease liabilities for each of the next five years and thereafter as of December 31, 2021 (in thousands): Years ending December 31, 2022 $ 3,257 2023 2,132 2024 450 2025 134 2026 — 2027 and thereafter — Total undiscounted future cash flows related to lease payments $ 5,973 Less: imputed interest (183) Total present value of lease liability $ 5,790 Lessor Operating Leases The following is the minimum future rental income as of December 31, 2021 under non-cancelable operating leases, assuming the minimum contractual lease term (in thousands): Years ending December 31, 2022 $ 1,133,267 2023 948,074 2024 796,752 2025 663,274 2026 504,396 2027 and thereafter 1,581,217 Total $ 5,626,980 As of December 31, 2021, the Company has deferred revenue balances related to leases with uneven payment terms. We expect to amortize these amounts into revenue as follows (in thousands): Years ending December 31, 2022 $ 6,677 2023 9,432 2024 11,938 2025 11,611 2026 11,013 2027 and thereafter 41,527 Total $ 92,198 Finance Leases The following table summarizes the components of the net investment in finance leases (in thousands): December 31, 2021 December 31, 2020 Future minimum lease payment receivable (1) $ 2,122,165 $ 355,755 Estimated residual receivable (2) 205,994 53,892 Gross finance lease receivables (3) 2,328,159 409,647 Unearned income (4) (769,869) (127,516) Net investment in finance leases (5) $ 1,558,290 $ 282,131 (1) There were no executory costs included in gross finance lease receivables as of December 31, 2021 and December 31, 2020. (2) The Company's finance leases generally include a purchase option at nominal amounts that is reasonably certain to be exercised, and therefore, the Company has immaterial residual value risk for assets. (3) The gross finance lease receivable is reduced as billed to customers and reclassified to accounts receivable until paid by customers. (4) There were no unamortized initial direct costs as of December 31, 2021 and December 31, 2020. (5) One major customer represented 91% and 75% of the Company's finance lease portfolio as of December 31, 2021 and 2020, respectively. No other customer represented more than 10% of the Company's finance lease portfolio in each of those years. Maturities of the Company's gross finance lease receivables subsequent to December 31, 2021 are as follows (in thousands): Years ending December 31, 2022 $ 202,217 2023 188,577 2024 185,251 2025 184,123 2026 181,847 2027 and thereafter 1,386,144 Total $ 2,328,159 The Company’s finance lease portfolio lessees are primarily comprised of the largest international shipping lines. In its estimate of expected credit losses, the Company evaluates the overall credit quality of its finance lease portfolio. 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. These allowances are based on, but not limited to, historical experience which includes stronger and weaker economic cycles, each lessee's payment history, management's current assessment of each lessee's financial condition, consideration of current economic conditions and reasonable market forecasts. As of December 31, 2021 and December 31, 2020 the Company does not have an allowance on its gross finance lease receivables and does not have any material past due balances. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company's 2016 Equity Incentive Plan ("2016 Equity Plan") provides for the granting of service-based and performance-based restricted shares and units to executives, employees and directors. The maximum aggregate number of shares and units that may be issued under the 2016 Equity Plan is 5,000,000 common shares and units. Any awards issued under the 2016 Equity Plan that are forfeited by the participant, will become available for future grant under the 2016 Equity Plan. The following table summarizes the Company's restricted share activity for the year ended December 31, 2021: Number of Shares Weighted Average Fair Value Non-vested balance at December 31, 2020 637,803 $ 35.78 Shares/units granted (1) 206,792 51.70 Shares/units vested (2) (245,768) 49.32 Shares/units forfeited (398) 51.27 Non-vested balance at December 31, 2021 598,429 $ 40.15 (1) Additional shares and units may be granted based upon the satisfaction of certain performance criteria. (2) Plan participants tendered 87,740 common shares to satisfy income tax withholding obligations. These shares were subsequently retired by the Company. The share-based compensation expense for the years ended December 31, 2021, 2020 and 2019 included in administrative expenses on the consolidated statements of operations was $9.4 million, $9.9 million, and $9.0 million, respectively. Share based compensation expense includes charges for performance-based shares and units that are deemed probable to vest. |
Other Equity Matters
Other Equity Matters | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Other Equity Matters | Other Equity Matters Share Repurchase Program The Company's Board of Directors authorized repurchases of shares up to a specified dollar amount as part of its repurchase program. 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 year ended December 31, 2021, the Company repurchased a total of 1,528,173 common shares at an average price per-share of $55.95 for a total of $85.5 million. As of December 31, 2021, $146.9 million remains available under the share repurchase program. Preferred Shares The following table summarizes the Company's preferred share issuances (the "Series"): Preferred Share Offering Issuance Liquidation Preference (in thousands) # of Shares (1) Underwriting Discounts (in thousands) Series A 8.50% Cumulative Redeemable Perpetual Preference Shares ("Series A") March 2019 $ 86,250 3,450,000 $ 2,717 Series B 8.00% Cumulative Redeemable Perpetual Preference Shares ("Series B") June 2019 143,750 5,750,000 $ 4,528 Series C 7.375% Cumulative Redeemable Perpetual Preference Shares ("Series C") November 2019 175,000 7,000,000 $ 5,513 Series D 6.875% Cumulative Redeemable Perpetual Preference Shares ("Series D") January 2020 150,000 6,000,000 $ 4,725 Series E 5.75% Cumulative Redeemable Perpetual Preference Shares ("Series E") August 2021 175,000 7,000,000 $ 5,513 $ 730,000 29,200,000 $ 22,996 (1) Represents number of shares authorized, issued, and outstanding. As a result of these offerings, the Company received $707.0 million in aggregate net proceeds which were used 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. Each Series of preferred shares may be redeemed at the Company's option, at any time after approximately five years from original issuance, in whole or in part at a redemption price, plus an amount equal to all accumulated and unpaid dividends, whether or not declared. The Company may also redeem each Series of preferred shares prior to the lapse of the five year period upon the occurrence of certain events as described in each agreement, such as transactions that either transfer ownership of substantially all assets to a single entity or establish a majority voting interest by a single entity, and cause a downgrade or withdrawal of rating by the rating agency within 60 days of the event. If the Company does not elect to redeem each Series upon the occurrence of the preceding events, holders of preferred shares may have the right to convert their preferred shares into common shares. Specifically for Series E only, the Company may redeem the Series E Preference Shares if an a pplicable rating agency changes the methodology or criteria that were employed in assigning equity credit to securities similar to the Series E Preference Shares when originally issued, which either (a) shortens the period of time during which equity credit pertaining to the Series E Preference Shares would have been in effect had the methodology not been changed or (b) reduces the amount of equity credit as compared with the amount of equity credit that the rating agency had assigned to the Series E Preference Shares when originally issued. Holders of preferred shares generally have no voting rights. 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. 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 equal to the stated rate per annum of the $25.00 liquidation preference per share. The Series rank senior to the Company's common shares with respect to dividend rights and rights upon the Company's liquidation, dissolution or winding up, whether voluntary or involuntary. The Company paid the following dividends during the years ended December 31, 2021, 2020, and 2019 on its issued and outstanding Series (in millions except for the per-share amounts): Year ended December 31, 2021 2020 2019 Series Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment A (1) $2.12 $ 7.2 $2.12 $ 7.2 $1.59 $ 5.5 B $2.00 $ 11.6 $2.00 $ 11.6 $0.95 $ 5.5 C (1) $1.84 $ 12.8 $1.84 $ 12.8 $0.19 $ 1.3 D (1) $1.72 $ 10.4 $1.53 $ 9.3 $— $ — E (1) $0.47 $ 3.3 $— $ — $— $ — Total $ 45.3 $ 40.9 $ 12.3 (1) Per share payments rounded to the nearest whole cent. As of December 31, 2021, the Company had cumulative unpaid preferred dividends of $2.2 million. Common Share Dividends The Company paid the following dividends during the years ended December 31, 2021, 2020, 2019 on its issued common shares (in millions except for the per-share amounts): Year Ended December 31, 2021 2020 2019 Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment $2.36 $ 157.3 $2.13 $ 146.5 $2.08 $ 153.9 Accumulated Other Comprehensive Income The following table summarizes the components of accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2021, 2020, and 2019 (in thousands): Cash Flow Foreign Accumulated Other Comprehensive (Loss) Income Balance at January 1, 2019 $ 19,043 $ (4,480) $ 14,563 Change in derivative instruments designated as cash flow hedges (1) (42,532) — (42,532) Reclassification of (gain) loss on derivative instruments designated as cash flow hedges (1) (4,039) — (4,039) Cumulative effect for the adoption of ASU 2017-12, net of income tax effect 432 — 432 Foreign currency translation adjustment — (57) (57) Balance at December 31, 2019 $ (27,096) $ (4,537) $ (31,633) Change in derivative instruments designated as cash flow hedges (1) (123,357) — (123,357) Reclassification of (gain) loss on derivative instruments designated as cash flow hedges (1) 21,927 — 21,927 Foreign currency translation adjustment — 28 28 Balance at December 31, 2020 $ (128,526) $ (4,509) $ (133,035) Change in derivative instruments designated as cash flow hedges (1) 55,599 — 55,599 Reclassification of (gain) loss on derivative instruments designated as cash flow hedges (1) 28,722 — 28,722 Foreign currency translation adjustment — (105) (105) Balance at December 31, 2021 $ (44,205) $ (4,614) $ (48,819) (1) Refer to Note 7 - "Derivative Instruments" for reclassification impact on the Consolidated Statements of Operations. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2021 | |
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 services offered. The following tables summarizes our segment information and the consolidated totals reported (in thousands): As of and for the Year Ended December 31, 2021 Equipment Leasing Equipment Trading Totals Total leasing revenues $ 1,519,434 $ 14,446 $ 1,533,880 Trading margin — 34,099 34,099 Net gain on sale of leasing equipment 107,060 — 107,060 Depreciation and amortization expense 625,519 721 626,240 Interest and debt expense 220,292 1,732 222,024 Segment income (loss) before income taxes (1) 673,477 40,973 714,450 Equipment held for sale 16,936 31,810 48,746 Goodwill 220,864 15,801 236,665 Total assets 12,543,270 100,568 12,643,838 Purchases of leasing equipment and investments in finance leases (2) $ 3,434,394 $ — $ 3,434,394 As of and for the Year Ended December 31, 2020 Equipment Leasing Equipment Trading Totals Total leasing revenues $ 1,300,346 $ 7,561 $ 1,307,907 Trading margin — 14,799 14,799 Net gain on sale of leasing equipment 37,773 — 37,773 Depreciation and amortization expense 541,406 722 542,128 Interest and debt expense 251,145 1,834 252,979 Segment income (loss) before income taxes (1)(3) 375,957 17,082 393,039 Equipment held for sale 43,275 24,036 67,311 Goodwill 220,864 15,801 236,665 Total assets 9,612,251 100,282 9,712,533 Purchases of leasing equipment and investments in finance leases (2) $ 744,129 $ — $ 744,129 As of and for the Year Ended December 31, 2019 Equipment Leasing Equipment Trading Totals Total leasing revenues $ 1,344,733 $ 2,536 $ 1,347,269 Trading margin — 14,508 14,508 Net gain on sale of leasing equipment 27,041 — 27,041 Depreciation and amortization expense 535,427 704 536,131 Interest and debt expense 314,805 1,365 316,170 Segment income (loss) before income taxes (1) 374,418 12,062 386,480 Equipment held for sale 89,755 24,749 114,504 Goodwill 220,864 15,801 236,665 Total assets 9,596,263 46,370 9,642,633 Purchases of leasing equipment and investments in finance leases (2) $ 240,170 $ — $ 240,170 (1) Segment income before income taxes excludes unrealized gains or losses on derivative instruments and debt termination expense. The Company recorded debt termination expense of $133.9 million, $24.7 million, and $2.5 million for the years ended December 31, 2021, 2020, and 2019, respectively and unrealized losses of nil, $0.3 million, and $3.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. (2) Represents cash disbursements for purchases of leasing equipment and investments in finance lease as reflected in the consolidated statements of cash flows for the periods indicated, but excludes cash flows associated with the purchase of equipment held for resale. There are no intercompany revenues or expenses between segments. 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 in the equipment trading segment 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 years ended December 31, 2021, 2020, and 2019 based on customers' primary domicile (in thousands): Year Ended December 31, 2021 2020 2019 Total equipment leasing revenues: Asia $ 556,837 $ 471,820 $ 534,529 Europe 807,735 685,906 654,683 Americas 118,430 105,643 118,259 Bermuda 2,424 1,820 2,182 Other International 48,454 42,718 37,616 Total $ 1,533,880 $ 1,307,907 $ 1,347,269 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 years ended December 31, 2021, 2020 and 2019 based on the location of the sale (in thousands): Year Ended December 31, 2021 2020 2019 Total equipment trading revenues: Asia $ 64,588 $ 22,748 $ 13,752 Europe 22,167 22,031 27,637 Americas 47,644 30,681 31,943 Bermuda — — — Other International 8,570 10,320 10,661 Total $ 142,969 $ 85,780 $ 83,993 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is a Bermuda exempted company. Bermuda does not impose a corporate income tax. The Company is subject to taxation in certain foreign jurisdictions on a portion of its income attributable to such jurisdictions. The two main subsidiaries of Triton are TCIL and TAL. TCIL is a Bermuda exempted company and therefore no income tax is imposed. However, a portion of TCIL's income is subject to taxation in the U.S. TAL is a U.S. company and therefore is subject to taxation in the U.S. The following table sets forth the total income taxes for the periods indicated (in thousands): December 31, December 31, 2020 December 31, 2019 Current taxes: Bermuda $ — $ — $ — U.S. 6,528 2,518 (637) Foreign 230 60 1,166 $ 6,758 $ 2,578 $ 529 Deferred taxes: Bermuda $ — $ — $ — U.S. 43,604 35,628 26,843 Foreign (5) 34 179 43,599 35,662 27,022 Total income taxes $ 50,357 $ 38,240 $ 27,551 The following table sets forth the components of income (loss) before income taxes (in thousands): December 31, 2021 December 31, 2020 December 31, 2019 Bermuda sources $ 346,023 $ 200,453 $ 241,985 U.S. sources 233,518 166,031 135,758 Foreign sources 1,056 1,535 3,087 Income (loss) before income taxes $ 580,597 $ 368,019 $ 380,830 The following table sets forth the difference between the Bermuda statutory income tax rate and the effective tax rate on the consolidated statements of operations for the periods indicated below: December 31, 2021 December 31, 2020 December 31, 2019 Bermuda tax rate — % — % — % Change in enacted tax act — % 0.65 % — % U.S. income taxed at other than the statutory rate 8.75 % 9.80 % 7.85 % Effect of uncertain tax positions (0.09) % (0.12) % 0.17 % Foreign income taxed at other than the statutory rate 0.11 % 0.14 % 0.14 % Effect of permanent differences 0.21 % 0.19 % 0.12 % Other discrete items (0.31) % (0.27) % (1.05) % Effective income tax rate 8.67 % 10.39 % 7.23 % The following table sets forth the components of deferred income tax assets and liabilities (in thousands): December 31, 2021 December 31, 2020 Deferred income tax assets: Net operating loss carryforwards $ 1,237 $ 22,924 Allowance for losses 13 257 Derivative instruments 4,810 11,268 Deferred income 366 382 Accrued liabilities and other payables 5,138 5,713 Total gross deferred tax assets 11,564 40,544 Less: Valuation allowance (200) — Net deferred tax assets $ 11,364 $ 40,544 Deferred income tax liabilities: Accelerated depreciation $ 333,610 $ 331,954 Goodwill and other intangible amortization 3,879 3,841 Derivative instruments 121 — Deferred income 2,613 6,244 Deferred partnership income (loss) 47,150 25,856 Other — 80 Total gross deferred tax liability 387,373 367,975 Net deferred income tax liability $ 376,009 $ 327,431 The Company has no net operating loss carryforwards for U.S. federal income tax purposes at year end December 31, 2021. At December 31, 2021, the Company had deferred tax assets from U.S. state net operating loss carryforwards of $1.2 million that expire at various times beginning in 2022. The Company recorded a valuation allowance of $0.2 million at December 31, 2021 related to U.S. state net operating losses, as it is more likely than not that Triton will be unable to utilize these losses. The Company did not record a valuation allowance at December 31, 2020. In assessing the potential future realization of deferred tax assets, management considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods during which the deferred tax assets are deductible, the Company believes it is more-likely-than-not that the Company will realize the benefits of these deductible differences at December 31, 2021. Certain income taxes on unremitted earnings have not been reflected on the consolidated financial statements because such earnings are intended to be permanently reinvested in those jurisdictions. Such earnings and related income taxes are estimated to be approximately $79.9 million and $23.6 million, respectively, at December 31, 2021. The Tax Cuts and Jobs Act includes a tax on "global intangible low-taxed income" ("GILTI"), which taxes U.S shareholders on certain income earned by foreign subsidiaries. The Company has made an accounting policy election to account for the tax effects of the GILTI tax in the income tax provision in future periods as the tax arises. The Company files income tax returns in several jurisdictions including the U.S. and certain U.S. states. The following table sets forth the unrecognized tax benefit amounts (in thousands): December 31, 2021 December 31, 2020 Beginning balance at January 1 $ 650 $ 958 Increase (decrease) related to tax positions — — Lapse of statute of limitations (337) (318) Foreign exchange adjustment 14 10 Ending balance at December 31 $ 327 $ 650 It is reasonably possible that the total amount of unrecognized tax benefits as of December 31, 2021 will decrease by $0.2 million within the next twelve months due to statute of limitations lapses. This reduction will impact income tax expense when recognized. The tax years 2018 through 2021 remain subject to examination by major tax jurisdictions. The Company accrues interest and penalties related to income taxes in the provision for income taxes. The following table summarizes interest and penalty expense (in thousands): December 31, 2021 December 31, 2020 December 31, 2019 Interest expense (benefit) $ (78) $ (51) $ 193 Penalty expense (benefit) $ (97) $ (93) $ (115) The following table summarizes the components of income taxes payable included in Accounts payable and other accrued expenses on the consolidated balance sheets (in thousands): December 31, 2021 December 31, 2020 Corporate income taxes payable $ 108 $ 323 Unrecognized tax benefits 327 650 Interest accrued 86 164 Penalties 98 194 Income taxes payable $ 619 $ 1,331 |
Other Postemployement Benefits
Other Postemployement Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Savings Plan [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Other Postemployment BenefitsThe Company's U.S. employees participate in a defined contribution plan. Under the provisions of the plan, an employee is fully vested with respect to Company contributions after four years of service. The Company matches employee contributions of 100% up to a maximum of $6,000 of qualified compensation and may, at its discretion, make voluntary contributions. The Company's contributions were $0.7 million for each of the years ended December 31, 2021, 2020, and 2019, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Container Equipment Purchase Commitments As of December 31, 2021, the Company had commitments to purchase equipment in the amount of $156.5 million payable in 2022. 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. |
Related Party
Related Party | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe 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 finance leases with TriStar of $2.0 million for both years ended December 31, 2021 and 2020. The Company has a direct finance lease balance with TriStar of $8.9Â million and $10.3Â million for the years ended December 31, 2021 and December 31, 2020. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 19, 2022, the Company completed a $600.0 million corporate note offering. The corporate notes have a contractual interest rate of 3.25% with an expected maturity date of March 15, 2032. In conjunction with this, we terminated $300.0 million notional value of interest rate swaps and received a cash settlement of $12.1 million. On February 9, 2022, the Company's Board of Directors approved and declared a $0.65 per share quarterly cash dividend on its issued and outstanding common shares, payable on March 25, 2022 to shareholders of record at the close of business on March 11, 2022. On February 9, 2022, the Company's Board of Directors also approved and declared a cash dividend on its issued and outstanding preferred shares, payable on March 15, 2022 to holders of record as the close of business on March 8, 2022 as follows: Preferred Share Offering Dividend Rate Dividend Per Share Series A 8.500% $0.5312500 Series B 8.000% $0.5000000 Series C 7.375% $0.4609375 Series D 6.875% $0.4296875 Series E 5.750% $0.3593750 |
Schedule I Condensed Financial
Schedule I Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Registrant | TRITON INTERNATIONAL LIMITED Parent Company Condensed Balance Sheets (In thousands, except share data) December 31, 2021 December 31, 2020 ASSETS: Cash and cash equivalents $ 13 $ 1 Investment in subsidiaries 3,071,654 2,569,703 Other assets 35 46 Total assets $ 3,071,702 $ 2,569,750 LIABILITIES AND SHAREHOLDERS' EQUITY: Accounts payable and other accrued expenses $ 5,936 $ 2,822 Payables with affiliates, net 1,054 980 Total liabilities 6,990 3,802 Shareholders' equity Preferred shares, $0.01 par value, at liquidation preference 730,000 555,000 Common shares, $0.01 par value, 270,000,000 shares authorized, 81,295,366 and 81,151,723 shares issued, respectively 813 812 Undesignated shares, $0.01 par value, 800,000 and 7,800,000 shares authorized, respectively, no shares issued and outstanding — — Treasury shares, at cost, 15,429,499 and 13,901,326 shares, respectively (522,360) (436,822) Additional paid-in capital 904,224 905,323 Accumulated earnings 2,000,854 1,674,670 Accumulated other comprehensive income (48,819) (133,035) Total shareholders' equity 3,064,712 2,565,948 Total liabilities and shareholders' equity $ 3,071,702 $ 2,569,750 TRITON INTERNATIONAL LIMITED Parent Company Condensed Statements of Operations (In thousands) Year Ended December 31, 2021 2020 2019 Revenues: Revenues $ — $ — $ — Total revenues — — — Operating expenses: Administrative expenses 8,061 7,298 5,865 Operating income (loss) (8,061) (7,298) (5,865) Other income (expenses): Interest and debt expense — — (956) Net income from subsidiaries 538,301 337,077 359,508 Total other income (expenses) 538,301 337,077 358,552 Income (loss) before income taxes 530,240 329,779 352,687 Income tax expense (benefit) — — — Net income (loss) $ 530,240 $ 329,779 $ 352,687 TRITON INTERNATIONAL LIMITED Parent Company Condensed Statements of Cash Flows (In thousands) Year Ended December 31, 2021 2020 2019 Cash flows from operating activities: Net income (loss) $ 530,240 $ 329,779 $ 352,687 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Net (income) loss from subsidiaries (538,301) (337,077) (359,508) Dividends received from subsidiaries 293,866 352,903 338,569 Share-based compensation expense 1,268 1,177 1,403 Changes in operating assets and liabilities: Other (1,236) (589) (3,696) Net cash provided by (used in) operating activities 285,837 346,193 329,455 Cash flows from investing activities: Investment in subsidiary (169,488) (145,157) (291,997) Net cash provided by (used in) investing activities (169,488) (145,157) (291,997) Cash flows from financing activities: Issuance of preferred shares, net of underwriting discount 169,488 145,275 392,242 Purchases of treasury shares (82,528) (158,312) (222,236) Loan with affiliate — — (40,000) Dividends paid on preferred shares (45,321) (40,933) (12,323) Dividends paid on common shares (157,312) (146,476) (153,861) Other (664) (590) (1,281) Net cash provided by (used in) financing activities (116,337) (201,036) (37,459) Net increase (decrease) in cash and cash equivalents $ 12 $ — $ (1) Cash, cash equivalents and restricted cash, beginning of period 1 1 2 Cash, cash equivalents and restricted cash, end of period $ 13 $ 1 $ 1 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II TRITON INTERNATIONAL LIMITED Valuation and Qualifying Accounts (In thousands) For the year ended December 31, Accounts Receivable-Allowance for doubtful accounts: 2021 2020 2019 Beginning Balance $ 2,192 $ 1,276 $ 1,240 Additions / (Reversals) (910) 1,082 114 Write-offs (104) (166) (78) Ending Balance $ 1,178 $ 2,192 $ 1,276 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of ConsolidationThe consolidated financial statements include the accounts of the Company and subsidiaries in which it has a controlling interest, and variable interest entities of which the Company is the primary beneficiary. The equity method of accounting is applied when the Company does not have a controlling interest in an entity but exerts significant influence over the entity. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of EstimatesThe 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. |
Segment Reporting | Segment ReportingThe Company conducts its business activities in one industry, intermodal transportation equipment, and has two reporting segments, Equipment leasing and Equipment trading. The Company also segregates total equipment leasing revenues and total equipment trading revenues by geographic location based upon the primary domicile of the Company's customers. |
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 basisOther financial instruments that are exposed to concentration of credit risk are cash and cash equivalents, and restricted cash balances. Cash and cash equivalents, and restricted cash are held with financial institutions of high quality. Balances may exceed the amount of insurance provided on such deposits. |
Fair Value Measurements | Fair Value Measurements Fair value represents the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The determination of fair value may require an entity to make significant judgments or develop assumptions about market participants to reflect risks specific to the asset being valued. 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. 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments having original maturities of three months or less at the time of purchase. |
Restricted Cash | Restricted Cash The Company's restricted cash relates to amounts held at financial institutions pursuant to certain debt arrangements. The restricted cash balances represent cash proceeds collected and required to be used to pay debt service and other related expenses. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company's allowance for doubtful accounts is estimated based upon a review of the collectability of its receivables. This review is based on the risk profile of the receivables, credit quality indicators such as the level of past-due amounts and economic conditions. Generally, the Company does not require collateral on accounts receivable balances. An account is considered past due when a payment has not been received in accordance with the contractual terms. Changes in economic conditions or other events may necessitate additions or deductions to the allowance for doubtful accounts. The allowance for doubtful accounts is intended to provide for losses in the receivables, and requires the application of estimates and judgments as to the outcome of collection efforts, among other things. The Company believes its allowance for doubtful accounts is adequate to provide for credit losses inherent in its existing receivables. For our net investment in finance leases and accounts receivable for sales of equipment, the Company measures expected credit loss by evaluating the overall credit quality of its customers. Expected credit losses for these financial assets are estimated using historical experience which includes multiple economic cycles, customer payment history, management's assessment of the customer's financial condition, and consideration of current conditions and reasonable forecasts. |
Net Investment in Finance Leases | Net Investment in Finance Leases The Company has entered into various lease agreements that qualify as finance leases. These leases are long-term in nature, ranging for a period of three to fourteen years, and typically include an option to purchase the equipment at the end of the lease term for a nominal price that the Company deems reasonably certain to be exercised. At the inception of a finance lease, a net investment is recorded based on the gross investment (representing the total future minimum lease payments plus the estimated residual value), net of unearned income. Unearned income represents the excess of the gross investment over the fair value of the leased equipment at lease commencement. Any gain or loss is recognized at commencement and recorded in Net gain on sale of leasing equipment. |
Leasing Equipment | Leasing Equipment The Company purchases new equipment from equipment manufacturers for the purpose of leasing such equipment to customers. The Company also purchases used equipment with the intention of selling such equipment in one or more years from the date of purchase. Leasing equipment is recorded at cost and depreciated to an estimated residual value on a straight-line basis over the estimated useful lives. Capitalized costs for new container rental equipment include the manufactured cost of the container, inspection, delivery, and associated costs incurred in moving the container from the manufacturer to the initial on-hire location of such container. Repair and maintenance costs that do not extend the lives of the container rental equipment are charged to direct operating expenses at the time the costs are incurred. The estimated useful lives and residual values of the Company's leasing equipment are based on the Company's expectations for future used container sale prices. The Company evaluates estimates used in its depreciation policies on a regular basis to determine whether changes have taken place that would suggest that a change in its depreciation estimates for useful lives or the assigned residual values of its equipment is warranted. For 2021, the Company completed its annual depreciation policy assessment during the fourth quarter and concluded no change was necessary. The estimated useful lives and residual values for each major equipment type for the periods indicated below were as follows: As of December 31, 2021 and 2020 Equipment Type Depreciable Life Residual Value Dry containers 20-foot dry container 13 years $ 1,000 40-foot dry container 13 years $ 1,200 40-foot high cube dry container 13 years $ 1,400 Refrigerated containers 20-foot refrigerated container 12 years $ 2,350 40-foot high cube refrigerated container 12 years $ 3,350 Special containers 40-foot flat rack container 16 years $ 1,700 40-foot open top container 16 years $ 2,300 Tank containers 20 years $ 3,000 Chassis 20 years $ 1,200 Depreciation on leasing equipment commences on the date of initial on-hire. For leasing equipment purchased for resale that may be leased for a period of time, the Company adjusts its estimates for remaining useful life and residual values based on our expectations for how long the equipment will remain on-hire to the current lessee and the expected sales market for older containers when these units are redelivered. The net book value of the Company's leasing equipment by equipment type as of the dates indicated was (in thousands): December 31, 2021 December 31, 2020 Dry container $ 8,087,346 $ 6,589,960 Refrigerated container 1,556,673 1,483,820 Special container 297,925 307,765 Tank container 102,220 97,982 Chassis 156,949 151,169 Total $ 10,201,113 $ 8,630,696 Included in the amounts above are units not on lease at December 31, 2021 and 2020 with a total net book value of $391.3 million and $173.2 million, respectively. A large majority of the units not on lease at December 31, 2021 are recently purchased equipment. |
Valuation of Leasing Equipment | Valuation of Leasing Equipment Leasing equipment is evaluated for impairment whenever events or changes in circumstances indicate that its carrying value may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying value to its estimated undiscounted future cash flows expected to be generated by the asset. If the carrying value of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying value of the asset exceeds the fair value of the asset. Key indicators of impairment on leasing equipment include, among other factors, a sustained decrease in operating profitability, a sustained decrease in utilization, or indications of technological obsolescence. When testing for impairment, leasing equipment is generally grouped by equipment type, and is tested separately from other groups of assets and liabilities. Some of the significant estimates and assumptions used to determine future undiscounted cash flows and the measurement for impairment are the remaining useful life, expected utilization, expected future lease rates and expected disposal prices of the equipment. The Company considers the assumptions on expected utilization and the remaining useful life to have the greatest impact on its estimate of future undiscounted cash flows. These estimates are principally based on the Company's historical experience and management's judgment of market conditions. The Company did not record any impairment charges related to leasing equipment for the years ended December 31, 2021, 2020, and 2019. |
Equipment Held for Sale | Equipment Held for Sale When leasing equipment is returned off lease, the Company makes a determination of whether to repair and re-lease the equipment or sell the equipment. At the time the Company determines that equipment will be sold, it reclassifies the carrying value of leasing equipment to equipment held for sale. Equipment held for sale is recorded at the lower of its estimated fair value less costs to sell or carrying value at the time identified for sale. Depreciation expense on equipment held for sale is halted and disposals generally occur within 90 days. Initial write downs of equipment held for sale to fair value are recorded as an impairment charge and are included in Net gain on sale of leasing equipment. Subsequent increases or decreases to the fair value of those assets are recorded as adjustments to the carrying value of the equipment held for sale, however, any such adjustments may not exceed the respective equipment's carrying value at the time it was initially classified as held for sale. Realized gains and losses resulting from the sale of equipment held for sale are recorded in Net gain on sale of leasing equipment, and cash flows associated with the disposal of equipment held for sale are classified as cash flows from investing activities. |
Operating Leases | Operating Leases The Company leases office space and office equipment and evaluates whether these leases are classified as operating or financing at the inception of the lease. The classification is 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 payments and a 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. The benefits of lease incentives, including rent-free or reduced rent periods, and the cost of future rent escalations are recognized on a straight-line basis over the term of the lease. A lease liability and a corresponding ROU asset are not recognized when, at the commencement date of the lease, the term is 12 months or less. |
Property, Furniture and Equipment | Property, Furniture and Equipment Costs of major additions of property, furniture, equipment and improvements are capitalized and are included in Other assets on the consolidated balance sheets. The original cost is depreciated on a straight-line basis over the estimated useful lives of such property, furniture and equipment. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated useful lives of the leased assets. Other fixed assets, which consist primarily of computer software and hardware, are recorded at cost and amortized on a straight-line basis over their respective estimated useful lives, which range from three |
Goodwill | Goodwill Goodwill is tested for impairment at least annually on October 31 of each fiscal year or more frequently if events occur or circumstances exist that indicate that the fair value of a reporting unit may be below its carrying value. Goodwill has been allocated to the Company's reporting units, which are the same as its reporting segments. In evaluating goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether further impairment testing is necessary. Among the relevant events and circumstances that affect the fair value of reporting units, the Company considers individual factors such as macroeconomic conditions, changes in its industry and the markets in which the Company operates, as well as its reporting units' historical and expected future financial performance. If, after assessing the totality of events or circumstances, the Company determines it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, then the quantitative goodwill impairment test is unnecessary. The quantitative goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit is less than its fair value, no impairment exists. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. |
Intangible Assets | Intangible Assets Intangible assets with finite useful lives such as acquired lease intangibles are initially recorded at fair value and are amortized over their respective estimated useful lives and subsequently reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company has not recorded any impairment charges related to intangible assets for the years ended December 31, 2021, 2020, and 2019. |
Revenue Recognition | Revenue Recognition Operating Leases with Customers The Company enters into long-term leases and service leases with ocean carriers, principally as lessor in operating leases, for marine cargo equipment. Long-term leases provide customers with specified equipment for a specified term. The Company's leasing revenues are based upon the number of equipment units leased, the applicable per diem rate and the length of the lease. Long-term leases typically have initial contractual terms ranging from five eight The Company recognizes billings to customers for damages and certain other operating costs as leasing revenue when earned based on the terms of the contractual agreements with the customer. Finance Leases with Customers The Company enters into finance leases as lessor for some of the equipment in its fleet. At the inception of the lease, the Company records the total future minimum lease payments plus the estimated residual value, net of executory costs, if any. Cash deposits reduce the net finance lease receivable and are recorded on the statement of cash flows as deferred revenue within operating activities. The net investment in finance leases represents the receivables due from lessees, net of unearned income and amounts previously billed, which are included in accounts receivable. Unearned income, which also includes any initial direct costs, is recognized on a constant yield basis over the lease term and is recorded as leasing revenue. The Company's finance leases are usually long-term in nature and typically include an option to purchase the equipment at the end of the lease term for a nominal price that the Company deems reasonably certain to be exercised. Equipment Trading Revenues and Expenses |
Direct Operating Expenses | Direct Operating Expenses Direct operating expenses are directly related to the Company's equipment under and available for lease. These expenses primarily consist of the Company's costs to repair and maintain the equipment, to reposition the equipment and to store the equipment when it is not on lease. These costs are recognized when incurred. Certain positioning costs may be capitalized when incurred to place new equipment on an initial lease. |
Debt Costs | Debt CostsDebt costs represent the fees incurred in connection with debt obligation arrangements. These costs are capitalized and amortized using the effective interest method or on a straight-line basis over the term of the related obligation, depending on the type of debt obligation to which they relate. Unamortized debt costs may be written off when the related debt obligations are refinanced or extinguished prior to maturity. |
Derivative Instruments | Derivative Instruments The Company primarily uses derivatives in the management of its interest rate exposure on its long-term borrowings. The Company records derivative instruments on its balance sheet at fair value and establishes criteria for both the designation and effectiveness of hedging activities. The Company has entered into interest rate swap agreements with certain financial institutions. The interest rate swap agreements require the Company to make payments to counterparties at fixed rates in return for receipts based upon variable rates indexed to the London Interbank Offered Rate ("LIBOR") or its replacement rate. Derivative instruments are designated or non-designated for hedge accounting purposes. The fair value of the derivative instruments is measured at each balance sheet date and is reflected on a gross basis on the consolidated balance sheets. The change in fair value of the derivative instruments designated as a cash flow hedge are recorded on the consolidated balance sheets in accumulated other comprehensive income (loss) and are re-classified to interest and debt expense when the hedged interest payments are recognized. The change in fair value of non-designated derivative instruments is recorded in the consolidated statements of operations as other (income) expense, net. |
Income Taxes | Income Taxes The Company uses the liability method of accounting for income taxes, which requires recognition of deferred tax assets and liabilities based on the expected future tax consequences of temporary differences that currently exist between the tax basis and financial reporting basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any change in the tax rate which has an effect on deferred tax assets and liabilities is recognized as an increase or decrease to income in the period that includes the enactment date of the law that resulted in the change in tax rate. The Company recognizes the effect of income tax positions which are more-likely-than-not of being sustained. If a position does not meet the more-likely-than-not criteria, the Company records a reserve against the tax position such that a tax benefit is recognized only in the amount that has a greater than 50% likelihood of being recognized. The full impact of any change in recognition or measurement of an uncertain tax position is reflected in the period in which such change occurs. Potential interest and penalties associated with such uncertain tax positions are recorded as a component of income tax expense. |
Foreign Currency Translation and Re-measurement | Foreign Currency Translation and Re-measurement The Company uses the U.S. dollar as its reporting currency. The net assets and operations that are denominated in foreign currency and are subject to foreign currency translation included in the consolidated financial statements are attributable primarily to the Company's U.K. subsidiary. The accounts of this subsidiary have been converted at rates of exchange in effect at year end as to balance sheet accounts and at the annual weighted average exchange rates for the statements of operations accounts. The effects of changes in exchange rates in translating foreign subsidiaries' financial statements are included in shareholders' equity as accumulated other comprehensive (loss) income. The Company also has certain cash accounts, certain finance lease receivables and certain obligations that are denominated in currencies other than the Company's functional currency. These assets and liabilities are generally denominated in euros or British pounds, and are re-measured at each balance sheet date at the exchange rates in effect as of those dates. The impact of changes in exchange rates on the re-measurement of assets and liabilities are included in administrative expenses on the consolidated statements of operations. Net foreign currency exchange gains or losses was a loss of $1.0 million for the year ended December 31, 2021, a gain of $0.4 million for the year ended December 31, 2020 and a loss of $0.8 million for the year ended December 31, 2019. |
Share-based Compensation | Share-based Compensation The Company measures and recognizes share-based awards granted to employees based on the grant date fair value. Share-based awards may be subject to forfeiture if certain employment conditions are not met. The Company has elected to account for forfeitures as they occur. Time based awards are measured at the grant date and are recognized as compensation expense over the employee's requisite service period, generally the vesting period of the equity award, on a straight-line basis. Performance-based awards are recognized as compensation expense when satisfaction of the performance condition is considered probable. The Company also grants share-based awards to non-employee directors that vest immediately and are recognized as compensation expense based on the grant date fair value. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Any potential issuance of common shares, including those that are contingent and do not participate in dividends, are excluded from the weighted average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that would occur if securities exercisable or convertible into common shares were exercised or converted into common shares, utilizing the treasury share method. |
Recently Issued Accounting Standards Update | Recently Issued Accounting Standards Update Lessors - Certain Leases with Variable Lease Payments |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives and residual values for the majority of the Company's leasing equipment | The estimated useful lives and residual values for each major equipment type for the periods indicated below were as follows: As of December 31, 2021 and 2020 Equipment Type Depreciable Life Residual Value Dry containers 20-foot dry container 13 years $ 1,000 40-foot dry container 13 years $ 1,200 40-foot high cube dry container 13 years $ 1,400 Refrigerated containers 20-foot refrigerated container 12 years $ 2,350 40-foot high cube refrigerated container 12 years $ 3,350 Special containers 40-foot flat rack container 16 years $ 1,700 40-foot open top container 16 years $ 2,300 Tank containers 20 years $ 3,000 Chassis 20 years $ 1,200 |
Schedule of net book value of the Company's leasing equipment by equipment type | The net book value of the Company's leasing equipment by equipment type as of the dates indicated was (in thousands): December 31, 2021 December 31, 2020 Dry container $ 8,087,346 $ 6,589,960 Refrigerated container 1,556,673 1,483,820 Special container 297,925 307,765 Tank container 102,220 97,982 Chassis 156,949 151,169 Total $ 10,201,113 $ 8,630,696 |
Equipment Held for Sale (Tables
Equipment Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | Fair value is measured using Level 2 inputs and is based predominantly on recent sales prices. The following table summarizes the portion of equipment held for sale in the consolidated balance sheet that have been impaired and written down to fair value less cost to sell (in thousands): December 31, 2021 December 31, 2020 Equipment held for sale $ 239 $ 4,001 An impairment charge is recorded when the carrying value of the asset exceeds its fair value less cost to sell. The following table summarizes the Company's net impairment charges recorded in Net gain on sale of leasing equipment on the consolidated statements of operations (in thousands): Year Ended December 31, 2021 2020 2019 Impairment (loss) reversal on equipment held for sale $ 16 $ (3,532) $ (5,299) Gain (loss) on sale of equipment, net of selling costs 107,044 41,305 32,340 Net gain on sale of leasing equipment $ 107,060 $ 37,773 $ 27,041 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | December 31, 2021 (in thousands): Years ending December 31, Total Intangible Assets 2022 $ 10,497 2023 4,657 2024 1,963 Total $ 17,117 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on Cash and Cash Equivalents [Table Text Block] | The components of restricted cash as of December 31, 2021 and December 31, 2020 were as follows (in thousands): December 31, 2021 December 31, 2020 Collection accounts $ 37,372 $ 27,673 Trust accounts 31,628 19,001 Other restricted cash accounts 55,370 43,810 Total restricted cash $ 124,370 $ 90,484 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt instruments | 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) December 31, 2021 December 31, 2020 From To Asset-backed securitization term notes 1.98% Aug 2023 Feb 2031 $ 3,801,777 $ 2,920,807 Institutional notes —% — — — 1,642,314 Corporate notes 1.82% Aug 2023 Jun 2031 2,300,000 — Term loan facilities 1.49% May 2026 May 2026 1,176,000 840,000 Asset-backed securitization warehouse 1.95% Nov 2027 Nov 2027 225,000 264,000 Revolving credit facilities 1.48% Oct 2026 Oct 2026 1,112,000 760,500 Finance lease obligations 4.93% Feb 2022 Feb 2022 15,042 17,304 Total debt outstanding 8,629,819 6,444,925 Unamortized debt costs (63,794) (42,747) Unamortized debt premiums & discounts (3,508) (599) Unamortized fair value debt adjustment — 1,691 Debt, net of unamortized costs $ 8,562,517 $ 6,403,270 (1) Data as of December 31, 2021. Balance Outstanding Contractual Weighted Avg Interest Rate Maturity Range Weighted Avg Remaining Term From To Excluding impact of derivative instruments: Fixed-rate debt $5,513,840 1.95% Feb 2022 Jun 2031 4.7 years Floating-rate debt $3,115,979 1.56% Aug 2023 Nov 2027 3.9 years Including impact of derivative instruments: Fixed-rate debt $5,513,840 1.95% Hedged floating-rate debt 1,929,729 3.34% Total fixed and hedged debt 7,443,569 2.31% Unhedged floating-rate debt 1,186,250 1.56% Total $8,629,819 2.21% |
Schedule of Debt Offerings | The Company issued the following corporate notes during the year ended December 31, 2021: Date Total Offering Contractual Interest Rate Maturity April 15, 2021 $600.0 Million 2.05% Apr 2026 June 7, 2021 $500.0 Million 1.15% Jun 2024 June 7, 2021 $600.0 Million 3.15% Jun 2031 August 6, 2021 $600.0 Million 0.80% Aug 2023 The Company issued the following ABS fixed rate series during the year ended December 31, 2021: Date Total Offering Contractual Weighted Avg Interest Rate Expected Maturity February 3, 2021 $502.9 Million 1.69% Feb 2031 March 17, 2021 $725.0 Million 1.89% Dec 2030 |
Schedule of Maturities of Debt | Years ending December 31, 2022 $ 477,618 2023 1,230,460 2024 1,254,012 2025 430,497 2026 2,838,602 2027 and thereafter 2,398,630 Total $ 8,629,819 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of interest rate swap contracts | During the year ended December 31, 2021, the Company entered into the following hedging instruments: Derivative Instrument Date Effective Notional Amount Fixed Leg (Pay) Interest Rate Indexed To Scheduled Maturity Interest rate cap May 24, 2021 $200.0 million n/a 1 month LIBOR November 13, 2023 Interest rate swap October 29, 2021 $300.0 million 1.21% 1 month LIBOR October 29, 2031 (1) (1) Mandatory termination date of July 29, 2022. In conjunction with the issuance of ABS notes, the Company canceled the following interest rate swaps that were in place to hedge the impact of interest rate changes on fixed-rate debt issuances: Derivative Instrument Date Canceled Notional Amount Funds Received Interest rate swap January 25, 2021 $150.0 million $0.3 million Interest rate swap January 27, 2021 $150.0 million $0.3 million Interest rate swap February 19, 2021 $150.0 million $2.4 million Interest rate swap February 19, 2021 $150.0 million $2.4 million In conjunction with the redemption of the institutional notes, the Company entered into and subsequently canceled the following interest rate swaps that were in place to hedge the impact of interest rate changes related to the make-whole premium payment during the notification period. The settlement of these swaps of $0.9 million is presented in debt termination expense on the consolidated statement of operations and in payments under debt facilities and finance lease obligations within the financing section of the consolidated statement of cash flows. Derivative Instrument Date Canceled Notional Amount Funds Received (Paid) Interest rate swap June 25, 2021 $72.5 million $— million Interest rate swap June 25, 2021 $195.9 million $(0.9) million As of December 31, 2021, the Company had interest rate swap and cap agreements in place to fix or limit the floating interest rates on a portion of the borrowings under its debt facilities summarized below: Derivatives Notional Amount Weighted Average Cap Rate Weighted Average Interest Rate Swap (1) $1,929.7 million 1.9% n/a 5.1 years Interest Rate Cap $400.0 million n/a 5.5% 1.9 years (1) The impact of forward starting swaps will increase total notional amount by $350.0 million and increase the weighted average remaining term to 6.0 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): Year Ended December 31, Financial statement caption 2021 2020 2019 Non-Designated Derivative Instruments Realized (gains) losses Other (income) expense, net $ — $ (224) $ (2,237) Realized (gains) losses Debt termination expense $ 883 $ — $ — Unrealized (gains) losses Other (income) expense, net $ — $ 286 $ 3,107 Designated Derivative Instruments Realized (gains) losses Interest and debt (income) expense $ 30,638 $ 23,071 $ (6,048) Unrealized (gains) losses Comprehensive (income) loss $ (59,185) $ 134,051 $ 48,653 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Balance Sheet and Income Statement Effect [Table Text Block] | Balance Sheet Financial statement caption December 31, 2021 December 31, 2020 Right-of-use asset - operating Other assets $ 5,099 $ 5,062 Lease liability - operating Accounts payable and other accrued expenses $ 5,790 $ 6,088 Income Statement Financial statement caption Year Ended Year Ended Year Ended December 31, 2019 Operating lease cost (1) Administrative expenses $ 3,183 $ 3,005 $ 3,012 (1) Includes short-term leases that are immaterial. |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following represents our future undiscounted cash flows related to lease liabilities for each of the next five years and thereafter as of December 31, 2021 (in thousands): Years ending December 31, 2022 $ 3,257 2023 2,132 2024 450 2025 134 2026 — 2027 and thereafter — Total undiscounted future cash flows related to lease payments $ 5,973 Less: imputed interest (183) Total present value of lease liability $ 5,790 |
Operating Lease, Lease Income [Table Text Block] | Operating Leases The following is the minimum future rental income as of December 31, 2021 under non-cancelable operating leases, assuming the minimum contractual lease term (in thousands): Years ending December 31, 2022 $ 1,133,267 2023 948,074 2024 796,752 2025 663,274 2026 504,396 2027 and thereafter 1,581,217 Total $ 5,626,980 |
Schedule of deferred revenue | As of December 31, 2021, the Company has deferred revenue balances related to leases with uneven payment terms. We expect to amortize these amounts into revenue as follows (in thousands): Years ending December 31, 2022 $ 6,677 2023 9,432 2024 11,938 2025 11,611 2026 11,013 2027 and thereafter 41,527 Total $ 92,198 |
Schedule of components of the net investment in finance leases | The following table summarizes the components of the net investment in finance leases (in thousands): December 31, 2021 December 31, 2020 Future minimum lease payment receivable (1) $ 2,122,165 $ 355,755 Estimated residual receivable (2) 205,994 53,892 Gross finance lease receivables (3) 2,328,159 409,647 Unearned income (4) (769,869) (127,516) Net investment in finance leases (5) $ 1,558,290 $ 282,131 (1) There were no executory costs included in gross finance lease receivables as of December 31, 2021 and December 31, 2020. (2) The Company's finance leases generally include a purchase option at nominal amounts that is reasonably certain to be exercised, and therefore, the Company has immaterial residual value risk for assets. (3) The gross finance lease receivable is reduced as billed to customers and reclassified to accounts receivable until paid by customers. (4) There were no unamortized initial direct costs as of December 31, 2021 and December 31, 2020. (5) One major customer represented 91% and 75% of the Company's finance lease portfolio as of December 31, 2021 and 2020, respectively. No other customer represented more than 10% of the Company's finance lease portfolio in each of those years. |
Schedule of contractual maturities of the Company’s gross finance lease receivables | Maturities of the Company's gross finance lease receivables subsequent to December 31, 2021 are as follows (in thousands): Years ending December 31, 2022 $ 202,217 2023 188,577 2024 185,251 2025 184,123 2026 181,847 2027 and thereafter 1,386,144 Total $ 2,328,159 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | The following table summarizes the Company's restricted share activity for the year ended December 31, 2021: Number of Shares Weighted Average Fair Value Non-vested balance at December 31, 2020 637,803 $ 35.78 Shares/units granted (1) 206,792 51.70 Shares/units vested (2) (245,768) 49.32 Shares/units forfeited (398) 51.27 Non-vested balance at December 31, 2021 598,429 $ 40.15 (1) Additional shares and units may be granted based upon the satisfaction of certain performance criteria. (2) Plan participants tendered 87,740 common shares to satisfy income tax withholding obligations. These shares were subsequently retired by the Company. |
Other Equity Matters (Tables)
Other Equity Matters (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Stock by Class | Preferred Shares The following table summarizes the Company's preferred share issuances (the "Series"): Preferred Share Offering Issuance Liquidation Preference (in thousands) # of Shares (1) Underwriting Discounts (in thousands) Series A 8.50% Cumulative Redeemable Perpetual Preference Shares ("Series A") March 2019 $ 86,250 3,450,000 $ 2,717 Series B 8.00% Cumulative Redeemable Perpetual Preference Shares ("Series B") June 2019 143,750 5,750,000 $ 4,528 Series C 7.375% Cumulative Redeemable Perpetual Preference Shares ("Series C") November 2019 175,000 7,000,000 $ 5,513 Series D 6.875% Cumulative Redeemable Perpetual Preference Shares ("Series D") January 2020 150,000 6,000,000 $ 4,725 Series E 5.75% Cumulative Redeemable Perpetual Preference Shares ("Series E") August 2021 175,000 7,000,000 $ 5,513 $ 730,000 29,200,000 $ 22,996 (1) Represents number of shares authorized, issued, and outstanding. |
Dividends Declared | The Company paid the following dividends during the years ended December 31, 2021, 2020, and 2019 on its issued and outstanding Series (in millions except for the per-share amounts): Year ended December 31, 2021 2020 2019 Series Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment A (1) $2.12 $ 7.2 $2.12 $ 7.2 $1.59 $ 5.5 B $2.00 $ 11.6 $2.00 $ 11.6 $0.95 $ 5.5 C (1) $1.84 $ 12.8 $1.84 $ 12.8 $0.19 $ 1.3 D (1) $1.72 $ 10.4 $1.53 $ 9.3 $— $ — E (1) $0.47 $ 3.3 $— $ — $— $ — Total $ 45.3 $ 40.9 $ 12.3 (1) Per share payments rounded to the nearest whole cent. The Company paid the following dividends during the years ended December 31, 2021, 2020, 2019 on its issued common shares (in millions except for the per-share amounts): Year Ended December 31, 2021 2020 2019 Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment $2.36 $ 157.3 $2.13 $ 146.5 $2.08 $ 153.9 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the components of accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2021, 2020, and 2019 (in thousands): Cash Flow Foreign Accumulated Other Comprehensive (Loss) Income Balance at January 1, 2019 $ 19,043 $ (4,480) $ 14,563 Change in derivative instruments designated as cash flow hedges (1) (42,532) — (42,532) Reclassification of (gain) loss on derivative instruments designated as cash flow hedges (1) (4,039) — (4,039) Cumulative effect for the adoption of ASU 2017-12, net of income tax effect 432 — 432 Foreign currency translation adjustment — (57) (57) Balance at December 31, 2019 $ (27,096) $ (4,537) $ (31,633) Change in derivative instruments designated as cash flow hedges (1) (123,357) — (123,357) Reclassification of (gain) loss on derivative instruments designated as cash flow hedges (1) 21,927 — 21,927 Foreign currency translation adjustment — 28 28 Balance at December 31, 2020 $ (128,526) $ (4,509) $ (133,035) Change in derivative instruments designated as cash flow hedges (1) 55,599 — 55,599 Reclassification of (gain) loss on derivative instruments designated as cash flow hedges (1) 28,722 — 28,722 Foreign currency translation adjustment — (105) (105) Balance at December 31, 2021 $ (44,205) $ (4,614) $ (48,819) (1) Refer to Note 7 - "Derivative Instruments" for reclassification impact on the Consolidated Statements of Operations. |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The following tables summarizes our segment information and the consolidated totals reported (in thousands): As of and for the Year Ended December 31, 2021 Equipment Leasing Equipment Trading Totals Total leasing revenues $ 1,519,434 $ 14,446 $ 1,533,880 Trading margin — 34,099 34,099 Net gain on sale of leasing equipment 107,060 — 107,060 Depreciation and amortization expense 625,519 721 626,240 Interest and debt expense 220,292 1,732 222,024 Segment income (loss) before income taxes (1) 673,477 40,973 714,450 Equipment held for sale 16,936 31,810 48,746 Goodwill 220,864 15,801 236,665 Total assets 12,543,270 100,568 12,643,838 Purchases of leasing equipment and investments in finance leases (2) $ 3,434,394 $ — $ 3,434,394 As of and for the Year Ended December 31, 2020 Equipment Leasing Equipment Trading Totals Total leasing revenues $ 1,300,346 $ 7,561 $ 1,307,907 Trading margin — 14,799 14,799 Net gain on sale of leasing equipment 37,773 — 37,773 Depreciation and amortization expense 541,406 722 542,128 Interest and debt expense 251,145 1,834 252,979 Segment income (loss) before income taxes (1)(3) 375,957 17,082 393,039 Equipment held for sale 43,275 24,036 67,311 Goodwill 220,864 15,801 236,665 Total assets 9,612,251 100,282 9,712,533 Purchases of leasing equipment and investments in finance leases (2) $ 744,129 $ — $ 744,129 As of and for the Year Ended December 31, 2019 Equipment Leasing Equipment Trading Totals Total leasing revenues $ 1,344,733 $ 2,536 $ 1,347,269 Trading margin — 14,508 14,508 Net gain on sale of leasing equipment 27,041 — 27,041 Depreciation and amortization expense 535,427 704 536,131 Interest and debt expense 314,805 1,365 316,170 Segment income (loss) before income taxes (1) 374,418 12,062 386,480 Equipment held for sale 89,755 24,749 114,504 Goodwill 220,864 15,801 236,665 Total assets 9,596,263 46,370 9,642,633 Purchases of leasing equipment and investments in finance leases (2) $ 240,170 $ — $ 240,170 (1) Segment income before income taxes excludes unrealized gains or losses on derivative instruments and debt termination expense. The Company recorded debt termination expense of $133.9 million, $24.7 million, and $2.5 million for the years ended December 31, 2021, 2020, and 2019, respectively and unrealized losses of nil, $0.3 million, and $3.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. (2) Represents cash disbursements for purchases of leasing equipment and investments in finance lease as reflected in the consolidated statements of cash flows for the periods indicated, but excludes cash flows associated with the purchase of equipment held for resale. |
Geographic allocation of revenues for the periods indicated based on the customers primary domicile and allocates equipment trading revenue based on the location of sale | The following table summarizes the geographic allocation of equipment leasing revenues for the years ended December 31, 2021, 2020, and 2019 based on customers' primary domicile (in thousands): Year Ended December 31, 2021 2020 2019 Total equipment leasing revenues: Asia $ 556,837 $ 471,820 $ 534,529 Europe 807,735 685,906 654,683 Americas 118,430 105,643 118,259 Bermuda 2,424 1,820 2,182 Other International 48,454 42,718 37,616 Total $ 1,533,880 $ 1,307,907 $ 1,347,269 The following table summarizes the geographic allocation of equipment trading revenues for the years ended December 31, 2021, 2020 and 2019 based on the location of the sale (in thousands): Year Ended December 31, 2021 2020 2019 Total equipment trading revenues: Asia $ 64,588 $ 22,748 $ 13,752 Europe 22,167 22,031 27,637 Americas 47,644 30,681 31,943 Bermuda — — — Other International 8,570 10,320 10,661 Total $ 142,969 $ 85,780 $ 83,993 |
Income Taxes - (Tables)
Income Taxes - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | December 31, December 31, 2020 December 31, 2019 Current taxes: Bermuda $ — $ — $ — U.S. 6,528 2,518 (637) Foreign 230 60 1,166 $ 6,758 $ 2,578 $ 529 Deferred taxes: Bermuda $ — $ — $ — U.S. 43,604 35,628 26,843 Foreign (5) 34 179 43,599 35,662 27,022 Total income taxes $ 50,357 $ 38,240 $ 27,551 December 31, 2021 December 31, 2020 Corporate income taxes payable $ 108 $ 323 Unrecognized tax benefits 327 650 Interest accrued 86 164 Penalties 98 194 Income taxes payable $ 619 $ 1,331 |
Schedule of Income before Income Tax, Domestic and Foreign | December 31, 2021 December 31, 2020 December 31, 2019 Bermuda sources $ 346,023 $ 200,453 $ 241,985 U.S. sources 233,518 166,031 135,758 Foreign sources 1,056 1,535 3,087 Income (loss) before income taxes $ 580,597 $ 368,019 $ 380,830 |
Schedule of Effective Income Tax Rate Reconciliation | The following table sets forth the difference between the Bermuda statutory income tax rate and the effective tax rate on the consolidated statements of operations for the periods indicated below: December 31, 2021 December 31, 2020 December 31, 2019 Bermuda tax rate — % — % — % Change in enacted tax act — % 0.65 % — % U.S. income taxed at other than the statutory rate 8.75 % 9.80 % 7.85 % Effect of uncertain tax positions (0.09) % (0.12) % 0.17 % Foreign income taxed at other than the statutory rate 0.11 % 0.14 % 0.14 % Effect of permanent differences 0.21 % 0.19 % 0.12 % Other discrete items (0.31) % (0.27) % (1.05) % Effective income tax rate 8.67 % 10.39 % 7.23 % |
Summary of Unrecognized Tax Benefits | The following table sets forth the unrecognized tax benefit amounts (in thousands): December 31, 2021 December 31, 2020 Beginning balance at January 1 $ 650 $ 958 Increase (decrease) related to tax positions — — Lapse of statute of limitations (337) (318) Foreign exchange adjustment 14 10 Ending balance at December 31 $ 327 $ 650 |
Schedule of Deferred Tax Assets and Liabilities | The following table sets forth the components of deferred income tax assets and liabilities (in thousands): December 31, 2021 December 31, 2020 Deferred income tax assets: Net operating loss carryforwards $ 1,237 $ 22,924 Allowance for losses 13 257 Derivative instruments 4,810 11,268 Deferred income 366 382 Accrued liabilities and other payables 5,138 5,713 Total gross deferred tax assets 11,564 40,544 Less: Valuation allowance (200) — Net deferred tax assets $ 11,364 $ 40,544 Deferred income tax liabilities: Accelerated depreciation $ 333,610 $ 331,954 Goodwill and other intangible amortization 3,879 3,841 Derivative instruments 121 — Deferred income 2,613 6,244 Deferred partnership income (loss) 47,150 25,856 Other — 80 Total gross deferred tax liability 387,373 367,975 Net deferred income tax liability $ 376,009 $ 327,431 |
Summary of Income Tax Interest and Penalties | The following table summarizes interest and penalty expense (in thousands): December 31, 2021 December 31, 2020 December 31, 2019 Interest expense (benefit) $ (78) $ (51) $ 193 Penalty expense (benefit) $ (97) $ (93) $ (115) |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Schedule of Dividends Payable | On February 9, 2022, the Company's Board of Directors also approved and declared a cash dividend on its issued and outstanding preferred shares, payable on March 15, 2022 to holders of record as the close of business on March 8, 2022 as follows: Preferred Share Offering Dividend Rate Dividend Per Share Series A 8.500% $0.5312500 Series B 8.000% $0.5000000 Series C 7.375% $0.4609375 Series D 6.875% $0.4296875 Series E 5.750% $0.3593750 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - segment | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Number of Reportable Segments | 2 | ||
Customer One [Member] | Leases Billing [Member] | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 21.00% | 22.00% | 21.00% |
Customer One [Member] | Accounts Receivable [Member] | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 26.00% | 23.00% | |
Customer Two [Member] | Leases Billing [Member] | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 16.00% | 14.00% | 14.00% |
Customer Two [Member] | Accounts Receivable [Member] | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.00% | 6.00% | |
Customer Three [Member] | Leases Billing [Member] | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 9.00% | 5.00% |
Customer Three [Member] | Accounts Receivable [Member] | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 5.00% | 5.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Leasing Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Leasing equipment | $ 10,201,113,000 | $ 8,630,696,000 |
Property Available for Operating Lease, Net | $ 391,300,000 | $ 173,200,000 |
Dry Container Units 20 Foot | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 13 years | 13 years |
Residual values from date of manufacture | $ 1,000 | $ 1,000 |
Dry Container Units 40 Foot [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 13 years | 13 years |
Residual values from date of manufacture | $ 1,200 | $ 1,200 |
Dry Container Units 40 Foot High Cube [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 13 years | 13 years |
Residual values from date of manufacture | $ 1,400 | $ 1,400 |
Refrigerated Container Units 20 Foot [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 12 years | 12 years |
Residual values from date of manufacture | $ 2,350 | $ 2,350 |
Refrigerated Container Units 40 Foot High Cube [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 12 years | 12 years |
Residual values from date of manufacture | $ 3,350 | $ 3,350 |
Special Container Units 40 Foot Flat Rack [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 16 years | 16 years |
Residual values from date of manufacture | $ 1,700 | $ 1,700 |
Special Container Units 40 Foot Open Top [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 16 years | 16 years |
Residual values from date of manufacture | $ 2,300 | $ 2,300 |
Dry container units | ||
Property, Plant and Equipment [Line Items] | ||
Leasing equipment | 8,087,346,000 | 6,589,960,000 |
Refrigerated container units | ||
Property, Plant and Equipment [Line Items] | ||
Leasing equipment | 1,556,673,000 | 1,483,820,000 |
Special container units | ||
Property, Plant and Equipment [Line Items] | ||
Leasing equipment | $ 297,925,000 | $ 307,765,000 |
Tank Container Units [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 20 years | 20 years |
Residual values from date of manufacture | $ 3,000 | $ 3,000 |
Leasing equipment | $ 102,220,000 | $ 97,982,000 |
Chassis [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 20 years | 20 years |
Residual values from date of manufacture | $ 1,200 | $ 1,200 |
Leasing equipment | $ 156,949,000 | $ 151,169,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Other Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Impairment [Line Items] | |||
Foreign currency transaction gain (loss) | $ (1) | $ 0.4 | $ (0.8) |
Lessee, Operating Lease, Term of Contract | 2 years 1 month 6 days | 2 years 7 months 6 days | |
Triton Container Investments LLC [Member] | |||
Impairment [Line Items] | |||
Noncontrolling Interest in Operating Partnerships | 103 | ||
Proceeds from Noncontrolling Interests | $ 16.9 | ||
Minimum [Member] | |||
Impairment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Lessee, Operating Lease, Term of Contract | 5 years | ||
Maximum [Member] | |||
Impairment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Lessee, Operating Lease, Term of Contract | 8 years |
Equipment Held for Sale (Detail
Equipment Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net gain (loss) on sale of leasing equipment | $ 107,060 | $ 37,773 | $ 27,041 |
Carrying value containers impaired to fair value [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 239 | 4,001 | |
Long Lived Assets Held-for-sale, Name [Domain] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net gain (loss) on sale of leasing equipment | 16 | (3,532) | (5,299) |
Equipment, net of selling costs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net gain (loss) on sale of leasing equipment | $ 107,044 | $ 41,305 | $ 32,340 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Combinations [Abstract] | |||
Lease related amortization | $ 16,500 | $ 22,500 | $ 37,500 |
2022 | 10,497 | ||
2023 | 4,657 | ||
2024 | 1,963 | ||
Total | $ 17,117 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 124,370,000 | $ 90,484,000 |
Restricted Stock [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 37,372,000 | 27,673,000 |
Restricted Stock [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 31,628,000 | 19,001,000 |
Restricted Stock [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 55,370,000 | $ 43,810,000 |
Debt - Key Term and Carrying Va
Debt - Key Term and Carrying Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Debt outstanding | $ 8,629,819 | $ 6,444,925 |
Debt, Unamortized Deferred Financing Costs | (63,794) | (42,747) |
Unamortized debt premiums & discounts | (3,508) | (599) |
Unamortized fair value debt adjustment | 0 | 1,691 |
Debt, net of unamortized debt costs | $ 8,562,517 | 6,403,270 |
Institutional notes | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | |
Debt outstanding | $ 0 | 1,642,314 |
Asset Backed Securitization Term Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 1.98% | |
Debt outstanding | $ 3,801,777 | 2,920,807 |
Corporate notes | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 1.82% | |
Debt outstanding | $ 2,300,000 | 0 |
Term Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 1.49% | |
Debt outstanding | $ 1,176,000 | 840,000 |
Asset-backed securitization warehouse | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 1.95% | |
Debt outstanding | $ 225,000 | 264,000 |
Revolving credit facilities | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 1.48% | |
Debt outstanding | $ 1,112,000 | 760,500 |
Capital lease obligations | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.93% | |
Debt outstanding | $ 15,042 | $ 17,304 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | Oct. 14, 2021 | Aug. 31, 2021 | Jun. 28, 2021 | May 27, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 30, 2021 |
Debt | |||||||||
Write-off of debt costs | $ 133,853 | $ 24,734 | $ 2,543 | ||||||
Fair Value, Inputs, Level 2 [Member] | |||||||||
Debt | |||||||||
Debt Instrument, Fair Value Disclosure | 8,572,900 | $ 6,536,500 | |||||||
Second Revolving Credit Facility [Member] | |||||||||
Debt | |||||||||
Borrowing capacity | $ 1,125,000 | ||||||||
Restricted cash balance, interest expense, covenant term | 3 months | ||||||||
Revolving credit facilities | |||||||||
Debt | |||||||||
Borrowing capacity | $ 2,000,000 | ||||||||
Write-off of debt costs | $ 700 | ||||||||
Write-off of debt costs, additional | $ 600 | ||||||||
Revolving Credit Facility and Second Revolving Credit Facility [Member] | |||||||||
Debt | |||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,034,200 | ||||||||
Term Notes [Member] | |||||||||
Debt | |||||||||
Write-off of debt costs | $ 1,800 | ||||||||
Repayments of Debt | 820,000 | ||||||||
Extinguishment of Debt, Amount | 820,000 | ||||||||
Term Loan, Delayed Drawing | |||||||||
Debt | |||||||||
Borrowing capacity | $ 1,200,000 | ||||||||
Institutional notes | |||||||||
Debt | |||||||||
Write-off of debt costs | $ 2,500 | ||||||||
Repayments of Debt | $ 648,900 | 821,000 | |||||||
Redemption Premium | $ 43,100 | $ 84,800 | |||||||
Gain (Loss) on Write off Unamortized Debt Costs and Fair Value Adjustment | $ 600 | ||||||||
Minimum [Member] | |||||||||
Debt | |||||||||
Lessee, Finance Lease, Remaining Lease Term | 5 years | ||||||||
Minimum [Member] | Corporate notes | |||||||||
Debt | |||||||||
Debt Instrument, Term | 2 years | ||||||||
Maximum [Member] | |||||||||
Debt | |||||||||
Lessee, Finance Lease, Remaining Lease Term | 7 years | ||||||||
Maximum [Member] | Corporate notes | |||||||||
Debt | |||||||||
Debt Instrument, Term | 10 years | ||||||||
London Interbank Offered Rate (LIBOR) [Member] | Second Revolving Credit Facility [Member] | |||||||||
Debt | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.85% | ||||||||
London Interbank Offered Rate (LIBOR) [Member] | Term Notes [Member] | |||||||||
Debt | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.85% | ||||||||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan, Delayed Drawing | |||||||||
Debt | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.375% |
Debt - Outstanding Debt (Detail
Debt - Outstanding Debt (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Excluding Impact [Member] | Variable Rate Debt [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 3,115,979 |
Debt, Percentage Interest Rate Remaining Term | 3 years 10 months 24 days |
Excluding Impact [Member] | Fixed Rate Debt [Member] | |
Debt Instrument [Line Items] | |
Debt, Percentage Interest Rate Remaining Term | 4 years 8 months 12 days |
Including Impact [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 8,629,819 |
Debt, Weighted Average Interest Rate | 2.21% |
Including Impact [Member] | Variable Rate Debt [Member] | |
Debt Instrument [Line Items] | |
Debt, Weighted Average Interest Rate | 1.56% |
Including Impact [Member] | Fixed Rate Debt [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 5,513,840 |
Debt, Weighted Average Interest Rate | 1.95% |
Including Impact [Member] | Hedged Debt [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 1,929,729 |
Designated as Hedging Instrument [Member] | Including Impact [Member] | Fixed and Hedged Debt [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 7,443,569 |
Debt, Weighted Average Interest Rate | 2.31% |
Designated as Hedging Instrument [Member] | Including Impact [Member] | Hedged Debt [Member] | |
Debt Instrument [Line Items] | |
Debt, Weighted Average Interest Rate | 3.34% |
Not Designated as Hedging Instrument [Member] | Including Impact [Member] | Unhedged Debt [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 1,186,250 |
Debt - Offering (Details)
Debt - Offering (Details) - USD ($) $ in Millions | Aug. 06, 2021 | Jun. 07, 2021 | Apr. 15, 2021 | Mar. 17, 2021 | Feb. 03, 2021 |
Corporate Notes, Maturity Apr 2026 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 600 | ||||
Debt, Weighted Average Interest Rate | 2.05% | ||||
Corporate Notes, Maturity Jun 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 500 | ||||
Debt, Weighted Average Interest Rate | 1.15% | ||||
Corporate Notes, Maturity Jun 2031 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 600 | ||||
Debt, Weighted Average Interest Rate | 3.15% | ||||
Corporate Notes, Maturity Aug 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 600 | ||||
Debt, Weighted Average Interest Rate | 0.80% | ||||
ABS, Maturity Feb 2031 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 502.9 | ||||
Debt, Weighted Average Interest Rate | 1.69% | ||||
ABS, Maturity Dec 2030 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 725 | ||||
Debt, Weighted Average Interest Rate | 1.89% |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 477,618 |
2023 | 1,230,460 |
2024 | 1,254,012 |
2025 | 430,497 |
2026 | 2,838,602 |
2027 and thereafter | 2,398,630 |
Total | $ 8,629,819 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) | Apr. 15, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments | ||||
Payment for Termination of Derivative | $ 100,000 | |||
Write-off of debt costs | $ 133,853,000 | $ 24,734,000 | $ 2,543,000 | |
Interest Rate Swap [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Derivative Instruments | ||||
Derivative, Fixed Interest Rate | 0.25% | |||
Interest Rate Cap [Member] | ||||
Derivative Instruments | ||||
Derivative, Cap Interest Rate | 5.50% | |||
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||
Derivative Instruments | ||||
Cash Collateral for Interest Rate Swap Contracts | $ 17,000,000 | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||
Derivative Instruments | ||||
Derivative, Notional Amount | 93,800,000 | |||
Write-off of debt costs | 900,000 | |||
Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | ||||
Derivative Instruments | ||||
Derivative, Notional Amount | $ 200,000,000 |
Derivative Instruments - Hedgin
Derivative Instruments - Hedging Instruments (Details) - Designated as Hedging Instrument [Member] | Dec. 31, 2021USD ($) |
Interest Rate Cap [Member] | |
Fair Value of Derivative Instruments | |
Derivative, Notional Amount | $ 200,000,000 |
Forward starting interest rate swap, effective on October 29, 2021 | |
Fair Value of Derivative Instruments | |
Derivative, Notional Amount | $ 300,000,000 |
Derivative, Fixed Interest Rate | 1.21% |
Derivative Instruments - Termin
Derivative Instruments - Termination of Interest Rate Swaps (Details) - Designated as Hedging Instrument [Member] | Dec. 31, 2021USD ($) |
Interest rate swap, terminated on January 25, 2021 | |
Fair Value of Derivative Instruments | |
Derivative, Notional Amount | $ 150,000,000 |
Funds Received (Paid) | 300,000 |
Interest rate swap, terminated on January 27, 2021 | |
Fair Value of Derivative Instruments | |
Derivative, Notional Amount | 150,000,000 |
Funds Received (Paid) | 300,000 |
Interest rate swap, terminated on February 19, 2021 | |
Fair Value of Derivative Instruments | |
Derivative, Notional Amount | 150,000,000 |
Funds Received (Paid) | 2,400,000 |
Interest rate swap, terminated on February 19 2021 | |
Fair Value of Derivative Instruments | |
Derivative, Notional Amount | 150,000,000 |
Funds Received (Paid) | 2,400,000 |
Interest rate swap, terminated on June 25, 2021 | |
Fair Value of Derivative Instruments | |
Derivative, Notional Amount | 72,500,000 |
Funds Received (Paid) | 0 |
Interest rate swap, terminated on June 25, 2021 | |
Fair Value of Derivative Instruments | |
Derivative, Notional Amount | 195,900,000 |
Funds Received (Paid) | $ (900,000) |
Derivative Instruments - Intere
Derivative Instruments - Interest Rate Swap/Caps (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Fair Value of Derivative Instruments | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 24.7 |
Interest Rate Swap [Member] | |
Fair Value of Derivative Instruments | |
Net Notional Amount of Interest Rate During Period | 1.90% |
Interest Rate Swaps Average Remaining Maturity | 5 years 1 month 6 days |
Interest Rate Cap [Member] | |
Fair Value of Derivative Instruments | |
Net Notional Amount of Interest Rate Agreements | $ 400 |
Derivative, Cap Interest Rate | 5.50% |
Interest Rate Swaps Average Remaining Maturity | 1 year 10 months 24 days |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |
Fair Value of Derivative Instruments | |
Net Notional Amount of Interest Rate Agreements | $ 1,929.7 |
Designated as Hedging Instrument [Member] | Forward Contracts [Member] | |
Fair Value of Derivative Instruments | |
Interest Rate Swaps Average Remaining Maturity | 6 years |
Total Notional Amount Forward Starting Interest Rate Swap | $ 350 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value of Derivative Instruments | |||
Unrealized (gains) losses | $ (614,456) | $ (228,377) | $ (307,083) |
Other Comprehensive Income (Loss) [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||
Fair Value of Derivative Instruments | |||
Unrealized (gains) losses | (59,185) | 134,051 | 48,653 |
Other (income) expense, net | Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | |||
Fair Value of Derivative Instruments | |||
Realized loss on derivative instruments, net | 0 | (224) | (2,237) |
Unrealized (gains) losses | 0 | 286 | 3,107 |
Debt termination expense | Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | |||
Fair Value of Derivative Instruments | |||
Realized loss on derivative instruments, net | 883 | 0 | 0 |
Interest expense | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||
Fair Value of Derivative Instruments | |||
Realized (gains) losses | $ 30,638 | $ 23,071 | $ (6,048) |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating Lease, Weighted Average Implicit Rate, Percent | 3.50% | 4.04% | |
Lessee, Operating Lease, Term of Contract | 2 years 1 month 6 days | 2 years 7 months 6 days | |
Operating Lease, Payments | $ 3,300 | $ 3,100 | $ 3,200 |
Components of the net investment in finance leases | |||
Future minimum lease payment receivable | 2,122,165 | 355,755 | |
Estimated residual receivable | 205,994 | 53,892 | |
Gross finance lease receivable | 2,328,159 | 409,647 | |
Unearned income | (769,869) | (127,516) | |
Net investment in finance leases | $ 1,558,290 | $ 282,131 | |
Customer One [Member] | Lease Finance Portfolio Benchmark | Customer Concentration Risk | |||
Components of the net investment in finance leases | |||
Concentration Risk, Percentage | 91.00% | ||
Customer Two [Member] | Lease Finance Portfolio Benchmark | Customer Concentration Risk | |||
Components of the net investment in finance leases | |||
Concentration Risk, Percentage | 75.00% |
Leases - Financial Statement Im
Leases - Financial Statement Impact (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Operating Lease, Right-of-Use Asset | $ 5,099 | $ 5,062 | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable and other accrued expenses | Accounts payable and other accrued expenses | |
Operating Lease, Liability | $ 5,790 | $ 6,088 | |
General and Administrative Expense [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Cost | $ 3,183 | $ 3,005 | $ 3,012 |
Leases - Operating Leases Lesse
Leases - Operating Leases Lessee Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 3,257 | |
2023 | 2,132 | |
2024 | 450 | |
2025 | 134 | |
2026 | 0 | |
2027 and thereafter | 0 | |
Total undiscounted future cash flows related to lease payments | 5,973 | |
Less: imputed interest | (183) | |
Total present value of lease liability | 5,790 | $ 6,088 |
Lessor, Operating Lease, Payment to be Received, Recognized | ||
2022 | 6,677 | |
2023 | 9,432 | |
2024 | 11,938 | |
2025 | 11,611 | |
2026 | 11,013 | |
2017 and thereafter | 41,527 | |
Total | 92,198 | |
Leases, Operating [Abstract] | ||
2022 | 1,133,267 | |
2023 | 948,074 | |
2024 | 796,752 | |
2025 | 663,274 | |
2026 | 504,396 | |
2027 and thereafter | 1,581,217 | |
Total | $ 5,626,980 |
Leases - Maturities Of Gross Fi
Leases - Maturities Of Gross Finance Lease Receivables (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 202,217 |
2023 | 188,577 |
2024 | 185,251 |
2025 | 184,123 |
2026 | 181,847 |
2027 and thereafter | 1,386,144 |
Total | $ 2,328,159 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | Jul. 08, 2016 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Stock based compensation plans | ||||
Share-based compensation expense | $ 9,365 | $ 9,896 | $ 8,963 | |
Total unrecognized compensation cost | $ 9,200 | |||
Weighted average remaining contractual term | 1 year 8 months 12 days | |||
Restricted stock | Common Stock [Member] | 2016 Triton Plan [Member] | ||||
Stock based compensation plans | ||||
Number of Shares Tendered by Plan Participants in Connection with Option Exercises | 5,000,000 |
Share-Based Compensation Restri
Share-Based Compensation Restricted Share Activity (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Number of Shares Outstanding | |
Starting balance (in shares) | 637,803 |
Granted | 206,792 |
Vested | (245,768) |
Forfeited | (398) |
Ending balance (in shares) | 598,429 |
Weighted-Average Exercise Price | |
Weighted Average Grant Date Fair Value - Outstanding, starting balance (in dollars per share) | $ / shares | $ 35.78 |
Weighted Average Grant Date Fair Value - granted (in dollars per share) | $ / shares | 51.70 |
Weighted Average Grant Date Fair Value - vested (in dollars per share) | $ / shares | 49.32 |
Weighted Average Grant Date Fair Value - forfeitures (in dollars per share) | $ / shares | 51.27 |
Weighted Average Grant Date Fair Value - Outstanding, ending balance (in dollars per share) | $ / shares | $ 40.15 |
Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (87,740) |
Other Equity Matters (Details)
Other Equity Matters (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Treasury Stock Acquired, Average Cost Per Share | $ 55.95 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 146.9 | ||
Treasury Stock, Carrying Basis | $ 85.5 | ||
Treasury Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Treasury share acquired (in shares) | 1,528,173 | 5,129,981 | 6,918,197 |
Other Equity Matters - Preferre
Other Equity Matters - Preferred Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 31, 2021 | Jan. 31, 2020 | Nov. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||||||||
Preferred Stock, Liquidation Preference, Value | $ 730,000 | |||||||
Preferred Stock, Liquidation Preference Per Share | 29,200,000 | |||||||
Preferred Units, Offering Costs | $ 22,996 | |||||||
Issuance of preferred shares, net of underwriting discount | $ 169,488 | $ 145,275 | $ 392,242 | |||||
Preferred Stock, Redemption Price Per Share | $ 25 | |||||||
Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Issuance of preferred shares, net of underwriting discount | $ 707,000 | |||||||
Cumulative Dividends | $ 2,200 | |||||||
8.50% Series A Cumulative Redeemable Perpetual Preference Shares | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, dividend rate, percentage | 8.50% | |||||||
Preferred Stock, Liquidation Preference, Value | $ 86,250 | |||||||
Preferred Stock, Liquidation Preference Per Share | 3,450,000 | |||||||
Preferred Units, Offering Costs | $ 2,717 | |||||||
8.00% Series B Cumulative Redeemable Perpetual Preference Shares | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, dividend rate, percentage | 8.00% | |||||||
Preferred Stock, Liquidation Preference, Value | $ 143,750 | |||||||
Preferred Stock, Liquidation Preference Per Share | 5,750,000 | |||||||
Preferred Units, Offering Costs | $ 4,528 | |||||||
7.375% Series C Cumulative Redeemable Perpetual Preference Shares | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, dividend rate, percentage | 7.375% | |||||||
Preferred Stock, Liquidation Preference, Value | $ 175,000 | |||||||
Preferred Stock, Liquidation Preference Per Share | 7,000,000 | |||||||
Preferred Units, Offering Costs | $ 5,513 | |||||||
6.875% Series D Cumulative Redeemable Perpetual Preference Shares | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, dividend rate, percentage | 6.875% | |||||||
Preferred Stock, Liquidation Preference, Value | $ 150,000 | |||||||
Preferred Stock, Liquidation Preference Per Share | 6,000,000 | |||||||
Preferred Units, Offering Costs | $ 4,725 | |||||||
5.75% Series E Cumulative Redeemable Perpetual Preference Shares | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, dividend rate, percentage | 5.75% | |||||||
Preferred Stock, Liquidation Preference, Value | $ 175,000 | |||||||
Preferred Stock, Liquidation Preference Per Share | 7,000,000 | |||||||
Preferred Units, Offering Costs | $ 5,513 |
Other Equity Matters - Dividend
Other Equity Matters - Dividend Payment (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
8.50% Series A Cumulative Redeemable Perpetual Preference Shares | |||
Dividends Payable [Line Items] | |||
Dividends | $ 7.2 | $ 7.2 | $ 5.5 |
Preferred Stock, Dividends, Per Share, Cash Paid | $ 2.12 | $ 2.12 | $ 1.59 |
8.00% Series B Cumulative Redeemable Perpetual Preference Shares | |||
Dividends Payable [Line Items] | |||
Dividends | $ 11.6 | $ 11.6 | $ 5.5 |
Preferred Stock, Dividends, Per Share, Cash Paid | $ 2 | $ 2 | $ 0.95 |
7.375% Series C Cumulative Redeemable Perpetual Preference Shares | |||
Dividends Payable [Line Items] | |||
Dividends | $ 12.8 | $ 12.8 | $ 1.3 |
Preferred Stock, Dividends, Per Share, Cash Paid | $ 1.84 | $ 1.84 | $ 0.19 |
6.875% Series D Cumulative Redeemable Perpetual Preference Shares | |||
Dividends Payable [Line Items] | |||
Dividends | $ 10.4 | $ 9.3 | $ 0 |
Preferred Stock, Dividends, Per Share, Cash Paid | $ 1.72 | $ 1.53 | $ 0 |
5.75% Series E Cumulative Redeemable Perpetual Preference Shares | |||
Dividends Payable [Line Items] | |||
Dividends | $ 3.3 | $ 0 | $ 0 |
Preferred Stock, Dividends, Per Share, Cash Paid | $ 0.47 | $ 0 | $ 0 |
Preferred Stock [Member] | |||
Dividends Payable [Line Items] | |||
Dividends | $ 45.3 | $ 40.9 | $ 12.3 |
Other Equity Matters - Divide_2
Other Equity Matters - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||
Cash dividends paid per common share | $ 2.36 | $ 2.13 | $ 2.08 |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Dividends | $ 157.3 | $ 146.5 | $ 153.9 |
Other Equity Matters - AOCI (De
Other Equity Matters - AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 2,565,948 | $ 2,532,237 | $ 2,325,209 |
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges | (28,722) | (21,927) | 4,039 |
Cumulative effect of new ASU | 0 | 0 | 432 |
Foreign currency translation adjustment | (105) | 28 | (57) |
Ending balance | 3,064,712 | 2,565,948 | 2,532,237 |
Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (128,526) | (27,096) | 19,043 |
Change in derivative instruments designated as cash flow hedges | 55,599 | (123,357) | (42,532) |
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges | 28,722 | 21,927 | (4,039) |
Foreign currency translation adjustment | 0 | 0 | 0 |
Ending balance | (44,205) | (128,526) | (27,096) |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (4,509) | (4,537) | (4,480) |
Change in derivative instruments designated as cash flow hedges | 0 | 0 | 0 |
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges | 0 | 0 | 0 |
Foreign currency translation adjustment | (105) | 28 | (57) |
Ending balance | (4,614) | (4,509) | (4,537) |
Accumulated Other Comprehensive (Loss) Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (133,035) | (31,633) | 14,563 |
Change in derivative instruments designated as cash flow hedges | 55,599 | (123,357) | (42,532) |
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges | 28,722 | 21,927 | (4,039) |
Foreign currency translation adjustment | (105) | 28 | (57) |
Ending balance | $ (48,819) | $ (133,035) | (31,633) |
Accounting Standards Update 2017-12 [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect of new ASU | 432 | ||
Accounting Standards Update 2017-12 [Member] | Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect of new ASU | 0 | ||
Accounting Standards Update 2017-12 [Member] | Accumulated Other Comprehensive (Loss) Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect of new ASU | $ 432 |
Segment and Geographic Inform_3
Segment and Geographic Information - Segment Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of Operating Segments | segment | 2 | ||
Number of Reportable Segments | segment | 2 | ||
Operating and Capital Leases Income Statement Lease Revenue | $ 1,533,880 | $ 1,307,907 | $ 1,347,269 |
Gross Profit | 34,099 | 14,799 | 14,508 |
Net (gain) loss on sale of leasing equipment | (107,060) | (37,773) | (27,041) |
Depreciation and amortization expense | 626,240 | 542,128 | 536,131 |
Interest and debt expense | 222,024 | 252,979 | 316,170 |
Income before income taxes | 714,450 | 393,039 | 386,480 |
Equipment held for sale | 48,746 | 67,311 | 114,504 |
Goodwill at the end of the period | 236,665 | 236,665 | 236,665 |
Total assets at the end of the period | 12,643,838 | 9,712,533 | 9,642,633 |
Purchases of leasing equipment and investments in finance leases | 3,434,394 | 744,129 | 240,170 |
Write-off of debt costs | 133,853 | 24,734 | 2,543 |
Unrealized (gain) loss on derivative instruments | 0 | 286 | 3,107 |
Equipment leasing | |||
Segment Reporting Information [Line Items] | |||
Operating and Capital Leases Income Statement Lease Revenue | 1,519,434 | 1,300,346 | 1,344,733 |
Gross Profit | 0 | 0 | 0 |
Net (gain) loss on sale of leasing equipment | (107,060) | (37,773) | (27,041) |
Depreciation and amortization expense | 625,519 | 541,406 | 535,427 |
Interest and debt expense | 220,292 | 251,145 | 314,805 |
Income before income taxes | 673,477 | 375,957 | 374,418 |
Equipment held for sale | 16,936 | 43,275 | 89,755 |
Goodwill at the end of the period | 220,864 | 220,864 | 220,864 |
Total assets at the end of the period | 12,543,270 | 9,612,251 | 9,596,263 |
Purchases of leasing equipment and investments in finance leases | 3,434,394 | 744,129 | 240,170 |
Equipment trading | |||
Segment Reporting Information [Line Items] | |||
Operating and Capital Leases Income Statement Lease Revenue | 14,446 | 7,561 | 2,536 |
Gross Profit | 34,099 | 14,799 | 14,508 |
Net (gain) loss on sale of leasing equipment | 0 | 0 | 0 |
Depreciation and amortization expense | 721 | 722 | 704 |
Interest and debt expense | 1,732 | 1,834 | 1,365 |
Income before income taxes | 40,973 | 17,082 | 12,062 |
Equipment held for sale | 31,810 | 24,036 | 24,749 |
Goodwill at the end of the period | 15,801 | 15,801 | 15,801 |
Total assets at the end of the period | 100,568 | 100,282 | 46,370 |
Purchases of leasing equipment and investments in finance leases | $ 0 | $ 0 | $ 0 |
Segment and Geographic Inform_4
Segment and Geographic Information - Geographic Allocation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating and Capital Leases Income Statement Lease Revenue | $ 1,533,880 | $ 1,307,907 | $ 1,347,269 |
Total revenues | 142,969 | 85,780 | 83,993 |
Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating and Capital Leases Income Statement Lease Revenue | 556,837 | 471,820 | 534,529 |
Total revenues | 64,588 | 22,748 | 13,752 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating and Capital Leases Income Statement Lease Revenue | 807,735 | 685,906 | 654,683 |
Total revenues | 22,167 | 22,031 | 27,637 |
BERMUDA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating and Capital Leases Income Statement Lease Revenue | 2,424 | 1,820 | 2,182 |
Total revenues | 0 | 0 | 0 |
Americas [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating and Capital Leases Income Statement Lease Revenue | 118,430 | 105,643 | 118,259 |
Total revenues | 47,644 | 30,681 | 31,943 |
Other international | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating and Capital Leases Income Statement Lease Revenue | 48,454 | 42,718 | 37,616 |
Total revenues | $ 8,570 | $ 10,320 | $ 10,661 |
Income Taxes - Components of Cu
Income Taxes - Components of Current and Deferred (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign [Line Items] | |||
Current foreign tax expense | $ 6,758,000 | $ 2,578,000 | $ 529,000 |
Deferred foreign tax expense | 43,599,000 | 35,662,000 | 27,022,000 |
Total foreign income taxes | 50,357,000 | 38,240,000 | 27,551,000 |
Income (loss) before income taxes | 580,597,000 | 368,019,000 | 380,830,000 |
BERMUDA | |||
Foreign [Line Items] | |||
Current foreign tax expense | 0 | 0 | 0 |
Deferred foreign tax expense | 0 | 0 | 0 |
Income (loss) before income taxes | 346,023,000 | 200,453,000 | 241,985,000 |
UNITED STATES | |||
Foreign [Line Items] | |||
Current Income Tax Expense (Benefit) | 6,528,000 | 2,518,000 | (637,000) |
Deferred Federal Income Tax Expense (Benefit) | 43,604,000 | 35,628,000 | 26,843,000 |
Income (loss) before income taxes | 233,518,000 | 166,031,000 | 135,758,000 |
Foreign | |||
Foreign [Line Items] | |||
Current foreign tax expense | 230,000 | 60,000 | 1,166,000 |
Deferred foreign tax expense | (5,000) | 34,000 | 179,000 |
Income (loss) before income taxes | $ 1,056,000 | $ 1,535,000 | $ 3,087,000 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Tax Rate [Line Items] | |||
Foreign income taxed at other than the statutory rate | 0.11% | 0.14% | 0.14% |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 0.00% | 0.65% | 0.00% |
Effective Income Tax Rate Reconciliation, Uncertain Tax Positions, Percent | (0.09%) | (0.12%) | 0.17% |
Income Tax Reconciliation, Permanent Differences and Other Adjustments | 0.21% | 0.19% | 0.12% |
Income Tax Reconciliation, Discrete Items | (0.31%) | (0.27%) | (1.05%) |
Effective income tax rate | 8.67% | 10.39% | 7.23% |
BERMUDA | |||
Effective Tax Rate [Line Items] | |||
Foreign income taxed at other than the statutory rate | 0.00% | 0.00% | 0.00% |
UNITED STATES | |||
Effective Tax Rate [Line Items] | |||
Effective income tax rate | 8.75% | 9.80% | 7.85% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Derivative Instruments | $ 4,810 | $ 11,268 |
Deferred income tax assets: | ||
Net operating loss carryforwards | 1,237 | 22,924 |
Allowance for losses | 13 | 257 |
Deferred income | 366 | 382 |
Accrued liabilities and other payables | 5,138 | 5,713 |
Total gross deferred tax assets | 11,564 | 40,544 |
Less: Valuation allowance | (200) | 0 |
Net deferred tax assets | 11,364 | 40,544 |
Deferred income tax liabilities: | ||
Accelerated depreciation | 333,610 | 331,954 |
Derivative instruments | 121 | 0 |
Deferred income | 2,613 | 6,244 |
Deferred partnership income (loss) | 47,150 | 25,856 |
Other | 0 | 80 |
Total gross deferred tax liability | 387,373 | 367,975 |
Deferred Tax Assets, Net | 376,009 | 327,431 |
Deferred Tax Liabilities, Goodwill and Intangible Assets | $ 3,879 | $ 3,841 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Income Tax Disclosure [Abstract] | |
Deferred tax assets, operating loss carryforwards, domestic | $ 1.2 |
Operating loss carryforwards, valuation allowance | 0.2 |
Unremitted earnings | 79.9 |
Taxes withhelld on unremitted earnings | 23.6 |
Lapse of statute of limitations within the next 12 months | $ 0.2 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Unrecognized Tax Benefits [Roll Forward] | ||
Beginning balance at January 1 | $ 650 | $ 958 |
Increase (decrease) related to tax positions | 0 | |
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | 0 | |
Lapse of statute of limitations | (337) | (318) |
Foreign exchange adjustment | 14 | 10 |
Ending balance at December 31 | $ 327 | $ 650 |
Income Taxes - Interest and Pen
Income Taxes - Interest and Penalty Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Interest expense (benefit) | $ (78) | $ (51) | $ 193 |
Penalty expense (benefit) | $ (97) | $ (93) | $ (115) |
Income Taxes - Components of In
Income Taxes - Components of Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | |||
Corporate income taxes payable | $ 108 | $ 323 | |
Unrecognized tax benefits | 327 | 650 | $ 958 |
Interest accrued | 86 | 164 | |
Penalties | 98 | 194 | |
Income taxes payable | $ 619 | $ 1,331 |
Other Postemployement Benefits
Other Postemployement Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum contribution match | $ 6,000 | ||
Defined Contribution Plan, Cost | $ 700,000 | $ 700,000 | $ 700,000 |
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase commitment payable | $ 156.5 |
Related Party (Details)
Related Party (Details) - Tristar [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Percentage Of Ownership | 50.00% | |
Direct Financing Lease Receivable [Member] | ||
Related Party Transaction [Line Items] | ||
Proceeds from (Repayments of) Related Party Debt | $ 2 | $ 2 |
Loans and Leases Receivable, Related Parties | $ 8.9 | $ 10.3 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 09, 2022 | Jan. 19, 2022 | Aug. 31, 2021 | Jan. 31, 2020 | Nov. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 |
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Dividend approved and declared (in dollars per share) | $ 0.65 | ||||||
Subsequent Event | Interest Rate Swap [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Derivative, Terminated Notional Amount | $ 300 | ||||||
Derivative, Cash Received from Settlement | 12.1 | ||||||
Subsequent Event | Corporate notes | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from public offering | $ 600 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ||||||
8.50% Series A Cumulative Redeemable Perpetual Preference Shares | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, dividend rate, percentage | 8.50% | ||||||
8.50% Series A Cumulative Redeemable Perpetual Preference Shares | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, dividend rate, percentage | 8.50% | ||||||
Dividend approved and declared (in dollars per share) | $ 0.5312500 | ||||||
8.00% Series B Cumulative Redeemable Perpetual Preference Shares | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, dividend rate, percentage | 8.00% | ||||||
8.00% Series B Cumulative Redeemable Perpetual Preference Shares | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, dividend rate, percentage | 8.00% | ||||||
Dividend approved and declared (in dollars per share) | $ 0.5000000 | ||||||
7.375% Series C Cumulative Redeemable Perpetual Preference Shares | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, dividend rate, percentage | 7.375% | ||||||
7.375% Series C Cumulative Redeemable Perpetual Preference Shares | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, dividend rate, percentage | 7.375% | ||||||
Dividend approved and declared (in dollars per share) | $ 0.4609375 | ||||||
6.875% Series D Cumulative Redeemable Perpetual Preference Shares | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, dividend rate, percentage | 6.875% | ||||||
6.875% Series D Cumulative Redeemable Perpetual Preference Shares | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, dividend rate, percentage | 6.875% | ||||||
Dividend approved and declared (in dollars per share) | $ 0.4296875 | ||||||
5.75% Series E Cumulative Redeemable Perpetual Preference Shares | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, dividend rate, percentage | 5.75% | ||||||
5.75% Series E Cumulative Redeemable Perpetual Preference Shares | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, dividend rate, percentage | 5.75% | ||||||
Dividend approved and declared (in dollars per share) | $ 0.3593750 |
Schedule I Condensed Financia_2
Schedule I Condensed Financial Information of Registrant - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Financial Statements, Captions [Line Items] | |||
Cash and cash equivalents | $ 106,168 | $ 61,512 | |
Other assets | 50,346 | 83,969 | |
Assets | 12,643,838 | 9,712,533 | $ 9,642,633 |
Accounts payable and other accrued expenses | 70,557 | 68,449 | |
Liabilities | 9,579,126 | 7,146,585 | |
Undesignated shares, $0.01 par value, 800,000 and 7,800,000 shares authorized, respectively, no shares issued and outstanding | 0 | 0 | |
Treasury shares, at cost, 15,429,499 and 13,901,326 shares, respectively | (522,360) | (436,822) | |
Additional paid-in capital | 904,224 | 905,323 | |
Accumulated earnings | 2,000,854 | 1,674,670 | |
Accumulated other comprehensive income (loss) | (48,819) | (133,035) | |
Total shareholders' equity | 3,064,712 | 2,565,948 | |
Liabilities and Equity | 12,643,838 | 9,712,533 | |
Triton International Limited Holdings [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash and cash equivalents | 13 | 1 | |
Investment in subsidiaries | 3,071,654 | 2,569,703 | |
Other assets | 35 | 46 | |
Assets | 3,071,702 | 2,569,750 | |
Accounts payable and other accrued expenses | 5,936 | 2,822 | |
Payables with affiliates, net | 1,054 | 980 | |
Liabilities | 6,990 | 3,802 | |
Preferred shares, $0.01 par value, at liquidation preference | 730,000 | 555,000 | |
Common shares, $0.01 par value, 270,000,000 shares authorized, 81,295,366 and 81,151,723 shares issued, respectively | 813 | 812 | |
Treasury shares, at cost, 15,429,499 and 13,901,326 shares, respectively | (522,360) | (436,822) | |
Additional paid-in capital | 904,224 | 905,323 | |
Accumulated earnings | 2,000,854 | 1,674,670 | |
Accumulated other comprehensive income (loss) | (48,819) | (133,035) | |
Total shareholders' equity | 3,064,712 | 2,565,948 | |
Liabilities and Equity | 3,071,702 | 2,569,750 | |
Undesignated Common Stock [Member] | Triton International Limited Holdings [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Undesignated shares, $0.01 par value, 800,000 and 7,800,000 shares authorized, respectively, no shares issued and outstanding | $ 0 | $ 0 |
Schedule I Condensed Financia_3
Schedule I Condensed Financial Information of Registrant - Balance Sheet Parenthetical (Details) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Treasury Stock, Shares (in shares) | 15,429,499 | 13,901,326 |
Undesignated Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 800,000 | 7,800,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Triton International Limited Holdings [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Treasury Stock, Shares (in shares) | 15,429,499 | 13,901,326 |
Triton International Limited Holdings [Member] | Designated Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 270,000,000 | 270,000,000 |
Common stock, shares issued (in shares) | 81,295,366 | 81,151,723 |
Triton International Limited Holdings [Member] | Undesignated Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 800,000 | 7,800,000 |
Schedule I Condensed Financia_4
Schedule I Condensed Financial Information of Registrant - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Equipment trading revenues | $ 142,969 | $ 85,780 | $ 83,993 |
Administrative expenses | 89,319 | 80,532 | 75,867 |
Other Nonoperating Income (Expense) | 1,379 | 4,371 | 2,387 |
Amounts reclassified from Accumulated other comprehensive (loss) before income tax | 580,597 | 368,019 | 380,830 |
Income tax (benefit) expense | 50,357 | 38,240 | 27,551 |
Net Income (Loss) Attributable to Parent | 530,240 | 329,779 | 353,279 |
Triton International Limited Holdings [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Equipment trading revenues | 0 | 0 | 0 |
Administrative expenses | 8,061 | 7,298 | 5,865 |
Operating Expenses | (8,061) | (7,298) | (5,865) |
Interest and Debt Expense | 0 | 0 | (956) |
Income (Loss) from Subsidiaries, before Tax | 538,301 | 337,077 | 359,508 |
Other Nonoperating Income (Expense) | 538,301 | 337,077 | 358,552 |
Amounts reclassified from Accumulated other comprehensive (loss) before income tax | 530,240 | 329,779 | 352,687 |
Income tax (benefit) expense | 0 | 0 | 0 |
Net Income (Loss) Attributable to Parent | $ 530,240 | $ 329,779 | $ 352,687 |
Schedule I Condensed Financia_5
Schedule I Condensed Financial Information of Registrant - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net income (loss) | $ 530,240 | $ 329,779 | $ 353,279 |
Other | (26,568) | 47,348 | 2,385 |
Net cash provided by operating activities | 1,405,164 | 943,752 | 1,061,906 |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (3,217,386) | (489,017) | (23,720) |
Purchases of treasury shares | 82,528 | 158,312 | 222,236 |
Preferred shares dividend declared | (45,321) | (40,933) | (12,323) |
Dividends paid on preferred shares | (157,312) | (146,476) | (153,861) |
Other | (4,951) | (2,746) | (6,947) |
Net Cash Provided by (Used in) Financing Activities | 1,890,764 | (471,711) | (1,028,753) |
Cash and Cash Equivalents, Period Increase (Decrease) | 78,542 | (16,976) | 9,433 |
Cash, cash equivalents and restricted cash, beginning of period | 151,996 | 168,972 | 159,539 |
Cash, cash equivalents and restricted cash, end of period | 230,538 | 151,996 | 168,972 |
Triton International Limited Holdings [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income (loss) | 530,240 | 329,779 | 352,687 |
Net (income) loss from subsidiaries | (538,301) | (337,077) | (359,508) |
Dividends received from subsidiaries | 293,866 | 352,903 | 338,569 |
Share-based compensation expense | 1,268 | 1,177 | 1,403 |
Other | (1,236) | (589) | (3,696) |
Net cash provided by operating activities | 285,837 | 346,193 | 329,455 |
Investment in subsidiary | (169,488) | (145,157) | (291,997) |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (169,488) | (145,157) | (291,997) |
Issuance of preferred shares, net of underwriting discount | 169,488 | 145,275 | 392,242 |
Purchases of treasury shares | (82,528) | (158,312) | (222,236) |
Loan with affiliate | 0 | 0 | (40,000) |
Preferred shares dividend declared | (45,321) | (40,933) | (12,323) |
Dividends paid on preferred shares | (157,312) | (146,476) | (153,861) |
Other | (664) | (590) | (1,281) |
Net Cash Provided by (Used in) Financing Activities | (116,337) | (201,036) | (37,459) |
Cash and Cash Equivalents, Period Increase (Decrease) | 12 | 0 | (1) |
Cash, cash equivalents and restricted cash, beginning of period | 1 | 1 | 2 |
Cash, cash equivalents and restricted cash, end of period | $ 13 | $ 1 | $ 1 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - Accounts Receivable-Allowance for doubtful accounts: - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 2,192 | $ 1,276 | $ 1,240 |
(Reversals) | (910) | ||
Additions | 1,082 | 114 | |
Write-offs | (104) | (166) | (78) |
Ending Balance | $ 1,178 | $ 2,192 | $ 1,276 |