Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 30, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-37827 | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-1276572 | |
Entity Address, Address Line One | Victoria Place, 5th Floor | |
Entity Address, Address Line Two | 31 Victoria Street | |
Entity Address, City or Town | Hamilton | |
Entity Address, Postal Zip Code | HM 10 | |
Entity Address, Country | BM | |
City Area Code | 441 | |
Local Phone Number | 294-8033 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 101,158,891 | |
Entity Registrant Name | Triton International Limited | |
Entity Central Index Key | 0001660734 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
8.50% Series A Cumulative Redeemable Perpetual Preference Shares | New York Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 8.50% Series A Cumulative Redeemable Perpetual Preference Shares | |
Trading Symbol | TRTN PRA | |
Security Exchange Name | NYSE | |
8.00% Series B Cumulative Redeemable Perpetual Preference Shares | New York Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 8.00% Series B Cumulative Redeemable Perpetual Preference Shares | |
Trading Symbol | TRTN PRB | |
Security Exchange Name | NYSE | |
7.375% Series C Cumulative Redeemable Perpetual Preference Shares | New York Stock Exchange | ||
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 | |
6.875% Series D Cumulative Redeemable Perpetual Preference Shares | New York Stock Exchange | ||
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 | |
5.75% Series E Cumulative Redeemable Perpetual Preference Shares | New York Stock Exchange | ||
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 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS: | ||
Leasing equipment, net of accumulated depreciation of $4,642,142 and $4,482,185 | $ 8,504,236 | $ 8,768,917 |
Net investment in finance leases | 1,631,552 | 1,507,292 |
Equipment held for sale | 127,719 | 185,502 |
Revenue earning assets | 10,263,507 | 10,461,711 |
Cash and cash equivalents | 42,067 | 57,776 |
Restricted cash | 44,936 | 91,450 |
Accounts receivable, net of allowances of $1,027 and $738 | 265,956 | 243,443 |
Goodwill | 236,665 | 236,665 |
Lease intangibles, net of accumulated amortization of $297,803 and $296,494 | 654 | 1,963 |
Other assets | 36,827 | 44,254 |
Fair value of derivative instruments | 121,097 | 95,606 |
Total assets | 11,011,709 | 11,232,868 |
LIABILITIES AND SHAREHOLDERS' EQUITY: | ||
Equipment purchases payable | 28,048 | 31,597 |
Fair value of derivative instruments | 1,365 | 1,827 |
Deferred revenue | 223,151 | 259,023 |
Accounts payable and other accrued expenses | 119,519 | 116,888 |
Net deferred income tax liability | 415,382 | 415,901 |
Debt, net of unamortized costs of $45,224 and $43,924 | 7,289,500 | 7,470,634 |
Total liabilities | 8,076,965 | 8,295,870 |
Shareholders' equity: | ||
Undesignated shares, $0.01 par value, 800,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Additional paid-in capital (deficit) | (306,474) | (308,114) |
Accumulated earnings | 2,400,549 | 2,428,531 |
Accumulated other comprehensive income (loss) | 109,657 | 85,569 |
Total shareholders' equity | 2,934,744 | 2,936,998 |
Total liabilities and shareholders' equity | 11,011,709 | 11,232,868 |
Preferred Shares | ||
Shareholders' equity: | ||
Preferred shares, $0.01 par value, at liquidation preference | 730,000 | 730,000 |
Designated Common Stock | ||
Shareholders' equity: | ||
Common shares, $0.01 par value, 270,000,000 shares authorized, 101,158,891 shares issued and outstanding | $ 1,012 | $ 1,012 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Leasing equipment, accumulated depreciation and allowances | $ 4,642,142 | $ 4,482,185 |
Accounts receivable, allowances | 1,027 | 738 |
Finite-Lived Intangible Assets, Accumulated Amortization | 297,803 | 296,494 |
Deferred financing costs | $ 45,224 | $ 43,924 |
Preferred Shares | ||
Class of Stock [Line Items] | ||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Designated Common Stock | ||
Class of Stock [Line Items] | ||
Common Shares, Par Value (in dollars per share) | $ 0.01 | |
Common Shares, Shares Authorized (in shares) | 270,000,000 | |
Common Shares, Shares Issued (in shares) | 101,158,891 | |
Undesignated Common Stock | ||
Class of Stock [Line Items] | ||
Common Shares, Par Value (in dollars per share) | $ 0.01 | |
Common Shares, Shares Authorized (in shares) | 800,000 | |
Common Shares, Shares Outstanding (in shares) | 0 | |
Common Shares, Shares Issued (in shares) | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leasing revenues: | ||||
Operating leases | $ 350,965 | $ 360,004 | $ 697,181 | $ 730,352 |
Finance leases | 28,024 | 26,535 | 53,093 | 53,910 |
Total leasing revenues | 378,989 | 386,539 | 750,274 | 784,262 |
Equipment trading revenues | 13,971 | 26,426 | 24,117 | 45,528 |
Equipment trading expenses | (12,049) | (24,512) | (21,818) | (42,545) |
Trading margin | 1,922 | 1,914 | 2,299 | 2,983 |
Net gain (loss) on sale of leasing equipment | (38,118) | 21,583 | (23,496) | 37,083 |
Operating expenses: | ||||
Depreciation and amortization | 135,536 | 146,880 | 271,617 | 295,315 |
Direct operating expenses | 17,032 | 24,837 | 39,779 | 48,078 |
Administrative expenses | 24,012 | 23,397 | 45,821 | 46,261 |
Transaction and other costs | 16,139 | 2,579 | 21,651 | 2,579 |
Provision (reversal) for doubtful accounts | (1,956) | (760) | (1,490) | (2,557) |
Total operating expenses | 190,763 | 196,933 | 377,378 | 389,676 |
Operating income (loss) | 152,030 | 213,103 | 351,699 | 434,652 |
Other (income) expenses: | ||||
Interest and debt expense | 61,386 | 57,314 | 122,838 | 116,138 |
Other (income) expense, net | 55 | (269) | (78) | (317) |
Total other (income) expenses | 61,441 | 57,045 | 122,760 | 115,821 |
Income (loss) before income taxes | 90,589 | 156,058 | 228,939 | 318,831 |
Income tax expense (benefit) | 13,153 | 14,296 | 25,960 | 27,256 |
Net income (loss) | 77,436 | 141,762 | 202,979 | 291,575 |
Less: dividends on preferred shares | 13,028 | 13,028 | 26,056 | 26,056 |
Net income (loss) attributable to common shareholder | $ 64,408 | $ 128,734 | $ 176,923 | $ 265,519 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 77,436 | $ 141,762 | $ 202,979 | $ 291,575 |
Other comprehensive income (loss), net of tax: | ||||
Change in derivative instruments designated as cash flow hedges | 13,720 | 38,364 | 50,505 | 23,128 |
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges | (13,111) | (10,187) | (26,323) | (18,916) |
Foreign currency translation adjustment | (39) | 32 | (94) | 50 |
Other comprehensive income (loss), net of tax | 570 | 28,209 | 24,088 | 4,262 |
Comprehensive income | 78,006 | 169,971 | 227,067 | 295,837 |
Dividends on preferred shares | 13,028 | 13,028 | 26,056 | 26,056 |
Comprehensive income attributable to common shareholder | $ 64,978 | $ 156,943 | $ 201,011 | $ 269,781 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax (benefit) provision on change in derivative instruments designated as cash flow hedges | $ 301 | $ 1,706 | $ 1,206 | $ 1,201 |
Tax (benefit) provision on reclassification of (gain) loss on derivative instruments designated as cash flow hedges | (1,322) | (1,178) | (2,655) | (2,237) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 77,436 | 141,762 | 202,979 | 291,575 |
Change in derivative instruments designated as cash flow hedges | 13,720 | 38,364 | 50,505 | 23,128 |
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges | (13,111) | (10,187) | (26,323) | (18,916) |
Foreign currency translation adjustment | (39) | 32 | (94) | 50 |
Other Comprehensive Income Loss, Net of Tax Including New Accounting Adoption | 570 | 28,209 | 24,088 | 4,262 |
Dividends on preferred shares | $ 13,028 | $ 13,028 | $ 26,056 | $ 26,056 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Shares | Common Shares | Treasury Shares | Add'l Paid in Capital | Accumulated Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance, shares at Dec. 31, 2022 | 29,200,000 | 81,383,024 | 24,494,785 | ||||
Beginning balance at Dec. 31, 2022 | $ 3,204,363 | $ 730,000 | $ 814 | $ (1,077,559) | $ 909,911 | $ 2,531,928 | $ 109,269 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation, shares | 135,716 | ||||||
Other non-cash compensation costs | 2,213 | $ 1 | 2,212 | ||||
Treasury shares acquired, shares | 1,744,616 | ||||||
Treasury shares acquired | (116,960) | $ (116,960) | |||||
Share repurchase to settle shareholder tax obligations, shares | (77,326) | ||||||
Share repurchase to settle shareholder tax obligations | (5,480) | $ (1) | (5,479) | ||||
Net income (loss) | 149,813 | 149,813 | |||||
Other comprehensive income (loss) | (23,947) | (23,947) | |||||
Dividends, Common Stock, Cash | (39,214) | (39,214) | |||||
Preferred shares dividend declared | (13,028) | (13,028) | |||||
Ending balance, shares at Mar. 31, 2023 | 29,200,000 | 81,441,414 | 26,239,401 | ||||
Ending balance at Mar. 31, 2023 | 3,157,760 | $ 730,000 | $ 814 | $ (1,194,519) | 906,644 | 2,629,499 | 85,322 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation, shares | 0 | ||||||
Other non-cash compensation costs | 2,567 | 2,567 | |||||
Treasury shares acquired, shares | 140,000 | ||||||
Treasury shares acquired | (8,701) | $ (8,701) | |||||
Net income (loss) | 141,762 | 141,762 | |||||
Other comprehensive income (loss) | 28,209 | 28,209 | |||||
Dividends, Common Stock, Cash | (38,677) | (38,677) | |||||
Preferred shares dividend declared | (13,028) | (13,028) | |||||
Ending balance, shares at Jun. 30, 2023 | 29,200,000 | 81,441,414 | 26,379,401 | ||||
Ending balance at Jun. 30, 2023 | 3,269,892 | $ 730,000 | $ 814 | $ (1,203,220) | 909,211 | 2,719,556 | 113,531 |
Beginning balance, shares at Dec. 31, 2023 | 29,200,000 | 101,158,891 | 0 | ||||
Beginning balance at Dec. 31, 2023 | 2,936,998 | $ 730,000 | $ 1,012 | $ 0 | (308,114) | 2,428,531 | 85,569 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 125,543 | 125,543 | |||||
Other comprehensive income (loss) | 23,518 | 23,518 | |||||
Contributed capital from Parent | 820 | 820 | |||||
Return of capital to Parent | 913 | 913 | |||||
Dividends, Common Stock, Cash | (200,000) | (200,000) | |||||
Preferred shares dividend declared | (13,028) | (13,028) | |||||
Ending balance, shares at Mar. 31, 2024 | 29,200,000 | 101,158,891 | 0 | ||||
Ending balance at Mar. 31, 2024 | 2,872,938 | $ 730,000 | $ 1,012 | $ 0 | (307,294) | 2,340,133 | 109,087 |
Beginning balance, shares at Dec. 31, 2023 | 29,200,000 | 101,158,891 | 0 | ||||
Beginning balance at Dec. 31, 2023 | 2,936,998 | $ 730,000 | $ 1,012 | $ 0 | (308,114) | 2,428,531 | 85,569 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Contributed capital from Parent | 1,600 | ||||||
Ending balance, shares at Jun. 30, 2024 | 29,200,000 | 101,158,891 | 0 | ||||
Ending balance at Jun. 30, 2024 | 2,934,744 | $ 730,000 | $ 1,012 | $ 0 | (306,474) | 2,400,549 | 109,657 |
Beginning balance, shares at Mar. 31, 2024 | 29,200,000 | 101,158,891 | 0 | ||||
Beginning balance at Mar. 31, 2024 | 2,872,938 | $ 730,000 | $ 1,012 | $ 0 | (307,294) | 2,340,133 | 109,087 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 77,436 | 77,436 | |||||
Other comprehensive income (loss) | 570 | 570 | |||||
Contributed capital from Parent | 820 | 820 | |||||
Return of capital to Parent | 3,992 | ||||||
Preferred shares dividend declared | (13,028) | (13,028) | |||||
Ending balance, shares at Jun. 30, 2024 | 29,200,000 | 101,158,891 | 0 | ||||
Ending balance at Jun. 30, 2024 | $ 2,934,744 | $ 730,000 | $ 1,012 | $ 0 | $ (306,474) | $ 2,400,549 | $ 109,657 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Common shares dividend (in usd per share) | $ 0.70 | $ 0.70 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 202,979 | $ 291,575 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 271,617 | 295,315 |
Amortization of deferred debt cost and other debt related amortization | 4,614 | 3,939 |
Lease related amortization | 1,360 | 2,797 |
Other non-cash compensation costs | 1,640 | 4,780 |
Net (gain) loss on sale of leasing equipment | 23,496 | (37,083) |
Unrealized (gain) loss on derivative instruments | 47 | (4) |
Deferred income taxes | 930 | 5,234 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (18,097) | (31,235) |
Deferred revenue | (35,872) | (35,595) |
Accounts payable and other accrued expenses | 3,419 | 1,654 |
Equipment sold (purchased) for resale activity | 2,131 | 1,997 |
Cash collections on finance lease receivables, net of income earned | 59,811 | 115,523 |
Other assets | 7,175 | (11,288) |
Net cash provided by (used in) operating activities | 525,250 | 607,609 |
Cash flows from investing activities: | ||
Purchases of leasing equipment and investments in finance leases | (368,160) | (119,514) |
Proceeds from sale of equipment, net of selling costs | 200,727 | 180,312 |
Other | (61) | 2 |
Net cash provided by (used in) investing activities | (167,494) | 60,800 |
Cash flows from financing activities: | ||
Purchases of treasury shares | 0 | (129,776) |
Debt issuance costs | (8,757) | 0 |
Borrowings under debt facilities | 1,319,855 | 70,000 |
Payments under debt facilities and finance lease obligations | (1,500,116) | (528,213) |
Dividends paid on preferred shares | (26,056) | (26,056) |
Dividends paid on common shares | (200,000) | (77,209) |
Distribution to Parent | (4,905) | 0 |
Other | 0 | (5,480) |
Net cash provided by (used in) financing activities | (419,979) | (696,734) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (62,223) | (28,325) |
Cash, cash equivalents and restricted cash, beginning of period | 149,226 | 186,309 |
Cash, cash equivalents and restricted cash, end of period | 87,003 | 157,984 |
Supplemental disclosures: | ||
Interest paid | 117,840 | 112,884 |
Income taxes paid (refunded) | 8,921 | 24,754 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 1,326 | 791 |
Non-cash investing activities: | ||
Equipment purchases payable | $ 28,048 | $ 26,783 |
Description of the Business, Ba
Description of the Business, Basis of Presentation and Accounting Policy Updates | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business, Basis of Presentation and Accounting Policy Updates | Description of the Business, Basis of Presentation and Accounting Policy Updates Description of the Business Triton International Limited ("Triton" or the "Company"), through its subsidiaries, leases intermodal transportation equipment, primarily maritime containers, and provides maritime container management services through a worldwide network of service subsidiaries, third-party depots and other facilities. The majority of the Company's business is derived from leasing its containers to shipping line customers through a variety of long-term and short-term contractual lease arrangements. The Company also sells containers from its equipment leasing fleet as well as containers specifically acquired for resale from third parties. The Company's registered office is located in Bermuda. Basis of Presentation The unaudited consolidated financial statements and accompanying notes include the accounts of the Company and its subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information. Accordingly, these financial statements do not include all information and footnotes required by GAAP for complete financial statements. The unaudited interim financial statements have been prepared on a basis consistent with the Company's annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to state fairly the Company's financial position, results of operations, comprehensive income, shareholders' equity, and cash flows for the periods presented. The Consolidated Balance Sheet as of December 31, 2023, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by GAAP. The consolidated results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2024 or for any other future annual or interim period. These financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2023 included in the Company's Annual Report on Form 10-K which was filed with the Securities and Exchange Commission on February 29, 2024. The unaudited 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. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to the accompanying prior period financial statements and notes to conform to the current year's presentation. 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, components of compensation, goodwill and intangible assets. Actual results could differ from those estimates. Concentration of Credit Risk The Company's equipment leases and trade receivables subject it to potential credit risk. The Company extends credit to its customers based upon an evaluation of each customer's financial condition and credit history. Evaluations of the financial condition and associated credit risk of customers are performed on an ongoing basis. As a percent of its lease billings, the Company's three largest customers accounted for 20%, 19%, and 13% for the six months ended June 30, 2024 and 19%, 16% and 11% for the six months ended June 30, 2023. Fair Value Measurements 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 8 - "Debt" and Note 9 - "Derivative Instruments" , respectively. Recently Issued Accounting Standards Not Yet Adopted Segment Reporting Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , was issued in November 2023, which requires enhancements to the disclosure requirements for operating segments, primarily disclosures about significant segment expenses, in the Company’s annual and interim consolidated financial statements. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis. The Company is currently evaluating the impact, if any, that the adoption of this standard will have on its financial disclosures. Income Taxes ASU No. 2023-09, Improvements to Income Tax Disclosures, was issued in December 2023, which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). The new guidance also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual reporting periods beginning after December 15, 2024. The Company is currently evaluating the impact, if any, that the adoption of this standard will have on its financial disclosures. Compensation Costs ASU No. 2024-01, Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards (“ASU 2024-01”), was issued in March 2024, to clarify the scope application of profits interest and similar awards and to add incremental clarity to help entities determine whether profits interest and similar awards should be accounted for as share-based payment arrangements within the scope of ASC 718, Compensation-Stock Compensation. ASU 2024-01 is effective for annual periods beginning after December 15, 2024 and interim periods within those annual periods with early adoption permitted. The Company intends to adopt ASU 2024-01 as of January 1, 2025 on a prospective basis, and does not expect this ASU to have a significant impact on the Company’s consolidated financial statements. |
Merger
Merger | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Merger | Merger Brookfield Infrastructure Transaction On September 28, 2023, the Company completed the transactions contemplated by the Agreement and Plan of Merger, dated as of April 11, 2023 (the “Merger Agreement”), by and among the Company, Brookfield Infrastructure Corporation (“BIPC”), Thanos Holdings Limited (“Parent”) and Thanos MergerSub Limited, a subsidiary of Parent (“Merger Sub”). Pursuant to the Merger Agreement, Merger Sub merged with and into Triton (the “Merger”), with the Company surviving the Merger as a subsidiary of Parent. The Company incurred certain costs related to the Merger that are included in Transaction and other costs in the Company’s Consolidated Statements of Operations. For the three and six months ended June 30, 2024, transaction and other costs primarily consisted of employee incentive and retention compensation costs and legal expenses and other costs associated with the Merger. For both the three and six months ended June 30, 2023, transaction and other costs primarily consisted of advisory fees incurred in connection with the Merger. See Note 5 - "Other Compensation Costs - Other Compensation" for more detailed information regarding employee incentive and retention compensation. |
Equipment Held for Sale
Equipment Held for Sale | 6 Months Ended |
Jun. 30, 2024 | |
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. 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 components of Net gain (loss) on sale of leasing equipment on the Consolidated Statements of Operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Impairment (loss) reversal on equipment held for sale $ (885) $ (1,778) $ (2,081) $ (2,811) Gain (loss) on sale of equipment, net of selling costs 19,870 23,361 35,688 39,894 Up-front (loss) on finance lease (57,103) — (57,103) — Net gain (loss) on sale of leasing equipment $ (38,118) $ 21,583 $ (23,496) $ 37,083 During the second quarter of 2024, the Company entered into a finance lease transaction which included certain containers purchased during the COVID-19 pandemic with carrying values that were higher than current market values, resulting in an up-front loss of $57.1 million and corresponding reduction to the net book value of revenue earning assets. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of lease intangibles for leases acquired with lease rates above market in a business combination. As of June 30, 2024, the remaining $0.7 million of intangible assets will be fully amortized in 2024. |
Other Compensation Costs
Other Compensation Costs | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Other Compensation Costs | Other Compensation Costs Long-Term Cash Incentive Plan During the first quarter of 2024, the Company adopted a Long-Term Cash Incentive Plan that allows incentive awards to be granted to certain employees and consultants of the Company. The Company granted 2024 long-term cash incentive awards with a specified cash target value (“2024 LTIP Awards”) during the first quarter of 2024. The 2024 LTIP Awards will vest in equal installments on January 15, 2026 and January 15, 2027, subject to the participant's continued service with the Company. Payouts of the awards will be based on the Company’s valuation at vesting plus cumulative cash dividends and return of capital distributions paid by the Company over the vesting period. The aggregate target value of the 2024 LTIP Awards at the grant date was $11.2 million, which will be recognized as compensation expense over the vesting period. For the three and six months ended June 30, 2024, the Company recognized $0.9 million and $1.9 million, respectively, of compensation expense for the 2024 LTIP Awards in Administrative expenses on the Consolidated Statements of Operations. Long-Term Incentive Awards In the fourth quarter of 2023, certain senior executives of the Company were granted 750 incentive units pursuant to a long-term incentive program established by Brookfield Infrastructure. The awards (the “Incentive Units”) will vest in five equal annual installments on each of the first five anniversaries of the closing date of the Merger, subject to the participants' continued employment or service. During the second quarter of 2024, 125 additional Incentive Units were granted under this program in the form of bonus unit awards. The total number of Incentive Units granted under the long-term incentive program was 875 as of June 30, 2024. Payment obligations under the program (if any) are the responsibility of Brookfield Infrastructure. For additional information regarding the Incentive Units, please refer to the section titled "Post-Merger Long-Term Incentive Awards Granted by Brookfield Infrastructure" in Part III, Item 11. "Executive Compensation" in the 2023 Annual Report on Form 10-K. The Company will recognize compensation cost for the Incentive Units on a straight-line basis over the five-year vesting period based on the fair value of the awards. The fair value at grant date of $16.4 million is related to both units granted and additional units that are expected to be granted under this program in 2024. The fair value remains unchanged as of June 30, 2024. The fair value was calculated using a Black-Scholes pricing formula including the following significant assumptions: Underlying market price $100/share Volatility 34.35 % Expected term 5 years Risk-free rate 4.10 % For the three and six months ended June 30, 2024, the Company recognized $0.8 million and $1.6 million, respectively, of compensation expense for the Incentive Units in Administrative expenses on the Consolidated Statements of Operations. Changes in the fair value at each subsequent reporting date will be recognized as compensation expense based on the portion of vesting or service period lapsed from the grant date through the reporting date. Other Compensation Prior to the completion of the Merger, the Company recognized share-based compensation expense for share-based awards based on the grant date fair value. The expense was recognized over the employee's requisite service period, or vesting period of the equity award, approximately three years. The Company recognized share-based compensation expense in Administrative expenses of $2.6 million and $4.8 million for the three and six months ended June 30, 2023, respectively. In accordance with the Merger Agreement, upon closing of the Merger, Triton’s unvested restricted shares and restricted share units that were outstanding immediately prior to the closing of the Merger were converted into a contingent right to receive cash equal to the number of shares subject to such award, assuming attainment of the maximum level of performance for performance-based awards, multiplied by $83.16 per share, plus accrued dividends. This amount will be paid upon the earlier of the original vesting date of the award and the twelve-month anniversary of the Merger closing date subject to the participant's continued service with the Company. The modification of the unvested share-based awards changed the classification of the awards from equity to liability, as well as modified the original service period of the awards. The following table summarizes activity related to these awards for the six months ended June 30, 2024 (in millions): Accrued compensation liability at December 31, 2023 $ 41.6 Compensation expense (1) 8.0 Payments (2) (18.0) Accrued compensation liability at June 30, 2024 $ 31.6 Unrecognized compensation costs (3) $ 4.0 (1) Included in Transaction and other costs in the Consolidated Statements of Operations. (2) Amounts paid to participants primarily related to awards granted in 2021 that vested in January 2024. (3) Unrecognized compensation costs expected to be recognized by September 30, 2024. For the three and six months ended June 30, 2024, transaction and other costs also included $0.8 million and $1.6 million, respectively, of retention compensation expense related to the Merger. As of June 30, 2024, the accrued retention liability of $3.4 million is included in Accounts payable and other accrued expenses in the Consolidated Balance Sheets. Unrecognized retention compensation costs of $0.5 million are expected to be recorded and all accrued amounts to be paid by September 30, 2024. See Note 2 - "Merger" for more detailed information regarding Merger costs. |
Other Equity Matters
Other Equity Matters | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Other Equity Matters | Other Equity Matters In connection with the Merger, all previously issued and outstanding common shares of Triton were cancelled and following the closing of the Merger, 100% of the Company’s issued and outstanding common shares are privately held by an affiliate of Brookfield Infrastructure. During the second quarter of 2024, the Company paid a $4.0 million cash distribution to Parent for the reimbursement of transaction costs related to the Merger. During the first quarter of 2024, the Company paid a cash dividend of $200.0 million on the common shares of the Company to Parent and paid $0.9 million for transaction costs related to the Merger on behalf of Parent. In addition, the Company received a capital contribution of $1.9 million from a Brookfield affiliate in connection with the Merger that was distributed as a dividend to Parent. Preference Shares The following table summarizes the Company's preference share issuances (each, a "Series"): Preference Share Series Issuance Liquidation Preference (in thousands) # of Shares (1) Series A 8.50% Cumulative Redeemable Perpetual Preference Shares ("Series A") March 2019 $ 86,250 3,450,000 Series B 8.00% Cumulative Redeemable Perpetual Preference Shares ("Series B") June 2019 143,750 5,750,000 Series C 7.375% Cumulative Redeemable Perpetual Preference Shares ("Series C") November 2019 175,000 7,000,000 Series D 6.875% Cumulative Redeemable Perpetual Preference Shares ("Series D") January 2020 150,000 6,000,000 Series E 5.75% Cumulative Redeemable Perpetual Preference Shares ("Series E") August 2021 175,000 7,000,000 $ 730,000 29,200,000 (1) Represents number of shares authorized, issued, and outstanding. Each Series of preference 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 preference shares prior to the lapse of the five year period upon the occurrence of certain events as described in each instrument, 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 preference shares may have the right to convert their preference shares into common shares. Specifically for Series E only, the Company may redeem the Series E Preference Shares if an applicable 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 preference 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 quarterly dividends on its issued and outstanding Series (in millions except for the per-share amounts): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Series Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment A (1) $0.53 $1.8 $0.53 $1.8 $1.06 $3.6 $1.06 $3.6 B $0.50 $2.9 $0.50 $2.9 $1.00 $5.8 $1.00 $5.8 C (1) $0.46 $3.2 $0.46 $3.2 $0.92 $6.4 $0.92 $6.4 D (1) $0.43 $2.6 $0.43 $2.6 $0.86 $5.2 $0.86 $5.2 E (1) $0.36 $2.5 $0.36 $2.5 $0.72 $5.1 $0.72 $5.1 Total $13.0 $13.0 $26.1 $26.1 (1) Per share payments rounded to the nearest whole cent. As of June 30, 2024, the Company had cumulative unpaid preference dividends of $2.2 million. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases Lessee The Company leases office facilities under various cancellable and non-cancellable 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 following table summarizes the impact of the Company's leases in its financial statements (in thousands): Balance Sheet Financial statement caption June 30, 2024 December 31, 2023 Right-of-use asset - operating Other assets $ 10,411 $ 10,093 Lease liability - operating Accounts payable and other accrued expenses $ 14,220 $ 13,510 Three Months Ended June 30, Six Months Ended June 30, Income Statement Financial statement caption 2024 2023 2024 2023 Operating lease cost (1) Administrative expenses $ 732 $ 708 $ 1,468 $ 1,475 (1) Includes short-term leases that are immaterial. Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows was $1.0 million and $1.6 million for the six months ended June 30, 2024 and 2023, respectively. The following table includes supplemental information related to the Company's operating leases: June 30, 2024 Weighted-Average Remaining Lease Term 9.1 years Weighted-Average Discount Rate 5.72 % Lessor Operating Leases As of June 30, 2024, the Company has deferred revenue balances related to operating leases with uneven payment terms. These amounts will be amortized into revenue as follows (in thousands): Year ending December 31, 2024 (Remaining 6 months) $ 38,346 2025 66,005 2026 43,237 2027 16,737 2028 15,568 2029 and thereafter 43,258 Total $ 223,151 Finance Leases The following table summarizes the components of the net investment in finance leases (in thousands): June 30, 2024 December 31, 2023 Future minimum lease payment receivable (1) $ 2,087,839 $ 1,928,167 Estimated residual receivable (2) 269,360 218,199 Gross finance lease receivables (3) 2,357,199 2,146,366 Unearned income (4) (725,647) (636,486) Finance lease reserve (5) — (2,588) Net investment in finance leases (6) $ 1,631,552 $ 1,507,292 (1) There were no executory costs included in gross finance lease receivables as of June 30, 2024 and December 31, 2023. (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 June 30, 2024 and December 31, 2023. (5) The Company reversed the finance lease reserve during the second quarter of 2024. (6) One major customer represented 93% of the Company's finance lease portfolio as of June 30, 2024 and December 31, 2023, respectively. No other customer represented more than 10% of the Company's finance lease portfolio in each of those periods. |
Leases | Leases Lessee The Company leases office facilities under various cancellable and non-cancellable 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 following table summarizes the impact of the Company's leases in its financial statements (in thousands): Balance Sheet Financial statement caption June 30, 2024 December 31, 2023 Right-of-use asset - operating Other assets $ 10,411 $ 10,093 Lease liability - operating Accounts payable and other accrued expenses $ 14,220 $ 13,510 Three Months Ended June 30, Six Months Ended June 30, Income Statement Financial statement caption 2024 2023 2024 2023 Operating lease cost (1) Administrative expenses $ 732 $ 708 $ 1,468 $ 1,475 (1) Includes short-term leases that are immaterial. Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows was $1.0 million and $1.6 million for the six months ended June 30, 2024 and 2023, respectively. The following table includes supplemental information related to the Company's operating leases: June 30, 2024 Weighted-Average Remaining Lease Term 9.1 years Weighted-Average Discount Rate 5.72 % Lessor Operating Leases As of June 30, 2024, the Company has deferred revenue balances related to operating leases with uneven payment terms. These amounts will be amortized into revenue as follows (in thousands): Year ending December 31, 2024 (Remaining 6 months) $ 38,346 2025 66,005 2026 43,237 2027 16,737 2028 15,568 2029 and thereafter 43,258 Total $ 223,151 Finance Leases The following table summarizes the components of the net investment in finance leases (in thousands): June 30, 2024 December 31, 2023 Future minimum lease payment receivable (1) $ 2,087,839 $ 1,928,167 Estimated residual receivable (2) 269,360 218,199 Gross finance lease receivables (3) 2,357,199 2,146,366 Unearned income (4) (725,647) (636,486) Finance lease reserve (5) — (2,588) Net investment in finance leases (6) $ 1,631,552 $ 1,507,292 (1) There were no executory costs included in gross finance lease receivables as of June 30, 2024 and December 31, 2023. (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 June 30, 2024 and December 31, 2023. (5) The Company reversed the finance lease reserve during the second quarter of 2024. (6) One major customer represented 93% of the Company's finance lease portfolio as of June 30, 2024 and December 31, 2023, respectively. No other customer represented more than 10% of the Company's finance lease portfolio in each of those periods. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt The table below summarizes the Company's key terms and carrying value of debt as of the periods indicated: June 30, 2024 December 31, 2023 Outstanding Borrowings (in thousands) Contractual Weighted Avg Interest Rate Maturity Range Outstanding Borrowings (in thousands) From To Secured Debt Financings Securitization ("ABS") term instruments $ 2,865,972 2.58% February 2028 May 2034 $ 2,579,832 Securitization warehouse 60,000 6.95% January 2031 January 2031 240,000 Total secured debt financings 2,925,972 2,819,832 Unsecured Debt Financings Senior notes 1,800,000 2.82% April 2026 March 2032 2,300,000 Term loan facility 1,397,240 6.70% May 2026 May 2026 1,468,496 Revolving credit facility 1,215,000 6.69% October 2027 October 2027 930,000 Total unsecured debt financings 4,412,240 4,698,496 Total debt financings $ 7,338,212 $ 7,518,328 Unamortized debt costs (45,224) (43,924) Unamortized debt premiums & discounts (3,488) (3,770) Debt, net of unamortized costs $ 7,289,500 $ 7,470,634 Securitization Term Instruments Under the Company's ABS facilities, indirect wholly-owned subsidiaries of the Company enter into debt agreements for ABS term instruments, including 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 GAAP. In the second quarter of 2024, the Company issued a series of ABS fixed-rate notes in the amount of $450.0 million at a weighted average interest rate of 5.55% and an expected maturity date of May 2034. The proceeds from this issuance were primarily used to pay down borrowings under the Company's revolving credit facility. In the first quarter of 2024, the Company obtained $57.0 million in irrevocable standby letters of credit to satisfy the restricted cash balance requirements equal to nine months of interest expense on the ABS facilities, inclusive of a $18.7 million irrevocable standby letter of credit related to the ABS fixed-rate notes issued in the second quarter of 2024. The restricted cash balance held by the Trustee in designated bank accounts of $38.3 million was released to the Company subsequent to the issuance of the letters of credit. 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, paying interest at term Secured Overnight Financing Rate ("SOFR") plus 1.60%. On January 22, 2024, the Company amended its ABS warehouse facility to extend the conversion date from April 27, 2025 to January 22, 2027. After the revolving period, borrowings will convert to term notes with a final maturity date of January 22, 2031 and pay interest at compound SOFR plus 2.60%. Additionally, the interest rate benchmark was amended from term SOFR to daily compounded SOFR. The margin over the benchmark rate was unchanged as a result of the amendment. 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 GAAP. The Company is required to maintain restricted cash balances on deposit in designated bank accounts equal to three months of interest expense. Senior Notes The Company’s senior notes are unsecured and have initial maturities ranging from five On June 7, 2024, the Company’s $500.0 million 1.15% senior notes matured. Payment at maturity was primarily funded by borrowings under Triton’s revolving credit facility. Term Loan Facility The Company's term loan facility has a maturity date of May 27, 2026, which amortizes in quarterly installments and has an interest rate of term SOFR plus 1.35%. This facility is subject to covenants customary for unsecured financings of this type, including financial covenants that require the Company to maintain a minimum ratio of unencumbered assets to certain financial indebtedness. Revolving Credit Facility The revolving credit facility has a maturity date of October 26, 2027, and has a maximum borrowing capacity of $2,000.0 million. The interest rate is term SOFR plus 1.35%. This facility is subject to covenants customary for unsecured financings of this type, including financial covenants that require the Company to maintain a minimum ratio of unencumbered assets to certain financial indebtedness. Derivative Impact on Debt 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 June 30, 2024: Balance Outstanding (in thousands) Contractual Weighted Avg Interest Rate Maturity Range Weighted Avg Remaining Term From To Excluding impact of derivative instruments: Fixed-rate debt $ 4,665,972 2.67% Apr 2026 May 2034 4.4 years Floating-rate debt $ 2,672,240 6.70% May 2026 Jan 2031 2.6 years Including impact of derivative instruments: Fixed-rate debt $ 4,665,972 2.67% Hedged floating-rate debt $ 1,833,250 3.99% Total fixed and hedged debt $ 6,499,222 3.04% Unhedged floating-rate debt $ 838,990 6.70% Total debt $ 7,338,212 3.45% The fair value of total debt outstanding was $6,825.8 million and $6,905.9 million as of June 30, 2024 and December 31, 2023, respectively, and was measured using Level 1 and Level 2 inputs. As of June 30, 2024, the maximum borrowing levels for the ABS warehouse and the revolving credit facility were $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. Based on those limitations, the availability under these credit facilities at June 30, 2024 was approximately $1,115.3 million. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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. These swaps are designated as cash flow hedges for accounting purposes and accordingly, changes in the fair value are recorded in accumulated other comprehensive income (loss) and reclassified to interest and debt expense when they are realized. The Company has entered into offsetting $500.0 million notional interest rate cap agreements with substantially similar economic terms related to certain debt facility requirements. These derivatives are not designated as hedging instruments, and because they offset, changes in fair value have an immaterial impact on the financial statements. 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. Additionally, the Company may be required to post cash collateral on certain derivative agreements if the fair value of these contracts represents a liability. Any amounts of cash collateral posted are included in Other assets on the Consolidated Balance Sheets and are presented in operating activities on the Consolidated Statements of Cash Flows. As of June 30, 2024, the Company had cash collateral on derivative instruments of $1.5 million. Within the next twelve months, the Company expects to reclassify $43.6 million of net unrealized and realized gains related to derivative instruments designated as cash flow hedges from accumulated other comprehensive income (loss) into earnings. As of June 30, 2024, the Company had derivative agreements in place to fix interest rates on a portion of the borrowings under its debt facilities with floating interest rates as summarized below: Derivatives Notional Amount (in millions) Weighted Average Weighted Average Interest Rate Swap (1) $1,833.3 2.64% 3.2 years (1) Excludes certain interest rate swaps with an effective date in a future period ("forward starting swaps"). Including these instruments will increase total notional amount by $350.0 million and increase the weighted average remaining term to 4.2 years. The following table summarizes the impact of derivative instruments on the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Income on a pretax basis (in thousands): Three Months Ended June 30, Six Months Ended June 30, Financial statement caption 2024 2023 2024 2023 Designated Derivative Instruments Realized (gains) losses Interest and debt (income) expense $ (14,433) $ (11,365) $ (28,978) $ (21,153) Unrealized (gains) losses Comprehensive (income) loss $ (14,021) $ (40,070) $ (51,711) $ (24,329) Fair Value of Derivative Instruments The Company presents the fair value of derivative instruments on a gross basis as a separate line item on the Consolidated Balance Sheets. |
Segment and Geographic Informat
Segment and Geographic Information | 6 Months Ended |
Jun. 30, 2024 | |
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 the Company's segment information and the consolidated totals reported (in thousands): Three Months Ended June 30, 2024 2023 Equipment Equipment Totals Equipment Equipment Totals Total leasing revenues $ 376,865 $ 2,124 $ 378,989 $ 384,826 $ 1,713 $ 386,539 Trading margin — 1,922 1,922 — 1,914 1,914 Net gain on sale of leasing equipment (38,118) — (38,118) 21,583 — 21,583 Depreciation and amortization expense 135,330 206 135,536 146,687 193 146,880 Interest and debt expense 61,217 169 61,386 57,000 314 57,314 Segment income (loss) before income taxes (1) 86,919 3,671 90,590 152,937 3,121 156,058 Purchases of leasing equipment and investments in finance leases (2) $ 293,852 $ — $ 293,852 $ 84,198 $ — $ 84,198 Six Months Ended June 30, 2024 2023 Equipment Equipment Totals Equipment Equipment Totals Total leasing revenues $ 746,554 $ 3,720 $ 750,274 $ 780,677 $ 3,585 $ 784,262 Trading margin — 2,299 2,299 — 2,983 2,983 Net gain on sale of leasing equipment (23,496) — (23,496) 37,083 — 37,083 Depreciation and amortization expense 271,205 412 271,617 294,937 378 295,315 Interest and debt expense 122,505 333 122,838 115,568 570 116,138 Segment income (loss) before income taxes (1) 223,712 5,274 228,986 313,207 5,620 318,827 Purchases of leasing equipment and investments in finance leases (2) $ 368,160 $ — $ 368,160 $ 119,514 $ — $ 119,514 (1) Segment income before income taxes excludes unrealized gains or losses on derivative instruments and debt termination expense. For the three and six months ended June 30, 2024 and June 30, 2023, the Company recorded an immaterial amount of unrealized gains or losses on derivative instruments and did not record any debt termination expense. (2) Represents cash disbursements for purchases of leasing equipment and investments in finance leases as reflected in the Consolidated Statements of Cash Flows for the periods indicated, but excludes cash flows associated with the purchase of equipment held for resale. June 30, 2024 December 31, 2023 Equipment Leasing Equipment Trading Totals Equipment Leasing Equipment Trading Totals Equipment held for sale $ 107,963 $ 19,756 $ 127,719 $ 165,184 $ 20,318 $ 185,502 Goodwill 220,864 15,801 236,665 220,864 15,801 236,665 Total assets $ 10,945,904 $ 65,805 $ 11,011,709 $ 11,164,052 $ 68,816 $ 11,232,868 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 total leasing revenues based on customers' primary domicile (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Total leasing revenues: Asia $ 135,328 $ 132,202 $ 259,354 $ 272,437 Europe 204,971 206,082 403,870 414,209 Americas 22,743 33,561 55,545 67,954 Bermuda 1,050 718 2,122 2,085 Other International 14,897 13,976 29,383 27,577 Total $ 378,989 $ 386,539 $ 750,274 $ 784,262 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 based on the location of the sale (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Total equipment trading revenues: Asia $ 6,483 $ 9,308 $ 8,474 $ 16,935 Europe 2,605 5,298 4,538 8,706 Americas 2,840 7,626 6,697 14,275 Bermuda — — — — Other International 2,043 4,194 4,408 5,612 Total $ 13,971 $ 26,426 $ 24,117 $ 45,528 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Container Equipment Purchase Commitments As of June 30, 2024, the Company had commitments to purchase equipment in the amount of $551.6 million to be paid in 2024. Contingencies - Legal Proceedings The Company is party to various pending or threatened legal or regulatory proceedings arising in the ordinary course of its business. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. Triton records liabilities related to legal matters when the exposure item becomes probable and can be reasonably estimated. Management does not expect these matters to have a material adverse effect on Triton’s financial condition, results of operations, or liquidity. However, these matters are subject to inherent uncertainties and it is possible that a liability arising from these matters could have a material adverse impact in the period in which the uncertainties are resolved, depending in part on the operating results for such period. In connection with the Merger, a putative Triton shareholder filed two petitions demanding an appraisal of its shares under Bermuda law in the Supreme Court of Bermuda. The actions, captioned Oasis Core Investments Fund Ltd. v. Triton International Limited |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is a Bermuda exempted company. Bermuda does not currently 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 Triton Container International Limited ("TCIL") and TAL International Group ("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 summarizes the Company's effective tax rate: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Effective Income Tax Rate 14.5 % 9.2 % 11.3 % 8.5 % The Company has computed the provision for income taxes based on the estimated annual effective tax rate and the application of discrete items, if any, in the applicable period. The increase in the effective tax rate for the three and six months ended June 30, 2024 compared to the same periods in 2023 was primarily due to nondeductible transaction costs incurred in connection with the Merger and the up-front loss on a finance lease transaction recorded in low tax jurisdictions during the second quarter of 2024 which resulted in a disproportionate increase to pre-tax income in higher tax jurisdictions. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 30, 2024, the Company's Board of Directors approved and declared a cash dividend of $200.0 million on its issued and outstanding common shares to Parent, payable on August 15, 2024. On July 30, 2024, the Company's Board of Directors also approved and declared a cash dividend on its issued and outstanding preference shares, payable on September 13, 2024 to holders of record at the close of business on September 6, 2024 as follows: Preference Share Series 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 On July 9, 2024, the Company amended and restated its existing $2,000.0 million revolving credit facility. The amendment extended the maturity date to July 9, 2029. The amendment also transitioned the reference rate from term to daily SOFR and increased the accordion feature available under the facility from $500.0 million to $1,000.0 million (or more in certain instances). The amendment also added a new $1,750.0 million term loan facility tranche with a maturity date of July 9, 2029, and a reference rate of daily SOFR. Proceeds from the new term loan were used in part to prepay the existing term loan agreement, which was then terminated. |
Description of the Business, _2
Description of the Business, Basis of Presentation and Accounting Policy Updates (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements and accompanying notes include the accounts of the Company and its subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information. Accordingly, these financial statements do not include all information and footnotes required by GAAP for complete financial statements. The unaudited interim financial statements have been prepared on a basis consistent with the Company's annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to state fairly the Company's financial position, results of operations, comprehensive income, shareholders' equity, and cash flows for the periods presented. The Consolidated Balance Sheet as of December 31, 2023, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by GAAP. The consolidated results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2024 or for any other future annual or interim period. These financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2023 included in the Company's Annual Report on Form 10-K which was filed with the Securities and Exchange Commission on February 29, 2024. The unaudited 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. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to the accompanying prior period financial statements and notes to conform to the current year's presentation. |
Use of Estimates | Use of Estimates |
Concentration of Credit Risk | Concentration of Credit Risk The Company's equipment leases and trade receivables subject it to potential credit risk. The Company extends credit to its customers based upon an evaluation of each customer's financial condition and credit history. Evaluations of the financial condition and associated credit risk of customers are performed on an ongoing basis. As a percent of its lease billings, the Company's three largest customers accounted for 20%, 19%, and 13% for the six months ended June 30, 2024 and 19%, 16% and 11% for the six months ended June 30, 2023. |
Fair Value Measurements | Fair Value Measurements 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 8 - "Debt" and Note 9 - "Derivative Instruments" |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted Segment Reporting Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures |
Income Taxes | Income Taxes ASU No. 2023-09, Improvements to Income Tax Disclosures, was issued in December 2023, which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). The new guidance also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual reporting periods beginning after December 15, 2024. The Company is currently evaluating the impact, if any, that the adoption of this standard will have on its financial disclosures. Compensation Costs ASU No. 2024-01, Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards (“ASU 2024-01”), was issued in March 2024, to clarify the scope application of profits interest and similar awards and to add incremental clarity to help entities determine whether profits interest and similar awards should be accounted for as share-based payment arrangements within the scope of ASC 718, Compensation-Stock Compensation. ASU 2024-01 is effective for annual periods beginning after December 15, 2024 and interim periods within those annual periods with early adoption permitted. The Company intends to adopt ASU 2024-01 as of January 1, 2025 on a prospective basis, and does not expect this ASU to have a significant impact on the Company’s consolidated financial statements. |
Equipment Held for Sale (Tables
Equipment Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Disclosure of Long Lived Assets 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. 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 components of Net gain (loss) on sale of leasing equipment on the Consolidated Statements of Operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Impairment (loss) reversal on equipment held for sale $ (885) $ (1,778) $ (2,081) $ (2,811) Gain (loss) on sale of equipment, net of selling costs 19,870 23,361 35,688 39,894 Up-front (loss) on finance lease (57,103) — (57,103) — Net gain (loss) on sale of leasing equipment $ (38,118) $ 21,583 $ (23,496) $ 37,083 During the second quarter of 2024, the Company entered into a finance lease transaction which included certain containers purchased during the COVID-19 pandemic with carrying values that were higher than current market values, resulting in an up-front loss of $57.1 million and corresponding reduction to the net book value of revenue earning assets. |
Other Compensation Costs (Table
Other Compensation Costs (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award | The fair value was calculated using a Black-Scholes pricing formula including the following significant assumptions: Underlying market price $100/share Volatility 34.35 % Expected term 5 years Risk-free rate 4.10 % |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount | The following table summarizes activity related to these awards for the six months ended June 30, 2024 (in millions): Accrued compensation liability at December 31, 2023 $ 41.6 Compensation expense (1) 8.0 Payments (2) (18.0) Accrued compensation liability at June 30, 2024 $ 31.6 Unrecognized compensation costs (3) $ 4.0 (1) Included in Transaction and other costs in the Consolidated Statements of Operations. (2) Amounts paid to participants primarily related to awards granted in 2021 that vested in January 2024. (3) Unrecognized compensation costs expected to be recognized by September 30, 2024. |
Other Equity Matters (Table)
Other Equity Matters (Table) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table summarizes the Company's preference share issuances (each, a "Series"): Preference Share Series Issuance Liquidation Preference (in thousands) # of Shares (1) Series A 8.50% Cumulative Redeemable Perpetual Preference Shares ("Series A") March 2019 $ 86,250 3,450,000 Series B 8.00% Cumulative Redeemable Perpetual Preference Shares ("Series B") June 2019 143,750 5,750,000 Series C 7.375% Cumulative Redeemable Perpetual Preference Shares ("Series C") November 2019 175,000 7,000,000 Series D 6.875% Cumulative Redeemable Perpetual Preference Shares ("Series D") January 2020 150,000 6,000,000 Series E 5.75% Cumulative Redeemable Perpetual Preference Shares ("Series E") August 2021 175,000 7,000,000 $ 730,000 29,200,000 (1) Represents number of shares authorized, issued, and outstanding. |
Dividends | The Company paid the following quarterly dividends on its issued and outstanding Series (in millions except for the per-share amounts): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Series Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment A (1) $0.53 $1.8 $0.53 $1.8 $1.06 $3.6 $1.06 $3.6 B $0.50 $2.9 $0.50 $2.9 $1.00 $5.8 $1.00 $5.8 C (1) $0.46 $3.2 $0.46 $3.2 $0.92 $6.4 $0.92 $6.4 D (1) $0.43 $2.6 $0.43 $2.6 $0.86 $5.2 $0.86 $5.2 E (1) $0.36 $2.5 $0.36 $2.5 $0.72 $5.1 $0.72 $5.1 Total $13.0 $13.0 $26.1 $26.1 (1) Per share payments rounded to the nearest whole cent. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Lessee, Balance Sheet and Income Statement Effect | The following table summarizes the impact of the Company's leases in its financial statements (in thousands): Balance Sheet Financial statement caption June 30, 2024 December 31, 2023 Right-of-use asset - operating Other assets $ 10,411 $ 10,093 Lease liability - operating Accounts payable and other accrued expenses $ 14,220 $ 13,510 Three Months Ended June 30, Six Months Ended June 30, Income Statement Financial statement caption 2024 2023 2024 2023 Operating lease cost (1) Administrative expenses $ 732 $ 708 $ 1,468 $ 1,475 (1) Includes short-term leases that are immaterial. |
Schedule of Weighted-Average Operating Lease | The following table includes supplemental information related to the Company's operating leases: June 30, 2024 Weighted-Average Remaining Lease Term 9.1 years Weighted-Average Discount Rate 5.72 % |
Schedule of deferred revenue | These amounts will be amortized into revenue as follows (in thousands): Year ending December 31, 2024 (Remaining 6 months) $ 38,346 2025 66,005 2026 43,237 2027 16,737 2028 15,568 2029 and thereafter 43,258 Total $ 223,151 |
Schedule of Components of Leveraged Lease Investments | The following table summarizes the components of the net investment in finance leases (in thousands): June 30, 2024 December 31, 2023 Future minimum lease payment receivable (1) $ 2,087,839 $ 1,928,167 Estimated residual receivable (2) 269,360 218,199 Gross finance lease receivables (3) 2,357,199 2,146,366 Unearned income (4) (725,647) (636,486) Finance lease reserve (5) — (2,588) Net investment in finance leases (6) $ 1,631,552 $ 1,507,292 (1) There were no executory costs included in gross finance lease receivables as of June 30, 2024 and December 31, 2023. (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 June 30, 2024 and December 31, 2023. (5) The Company reversed the finance lease reserve during the second quarter of 2024. (6) One major customer represented 93% of the Company's finance lease portfolio as of June 30, 2024 and December 31, 2023, respectively. No other customer represented more than 10% of the Company's finance lease portfolio in each of those periods. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The table below summarizes the Company's key terms and carrying value of debt as of the periods indicated: June 30, 2024 December 31, 2023 Outstanding Borrowings (in thousands) Contractual Weighted Avg Interest Rate Maturity Range Outstanding Borrowings (in thousands) From To Secured Debt Financings Securitization ("ABS") term instruments $ 2,865,972 2.58% February 2028 May 2034 $ 2,579,832 Securitization warehouse 60,000 6.95% January 2031 January 2031 240,000 Total secured debt financings 2,925,972 2,819,832 Unsecured Debt Financings Senior notes 1,800,000 2.82% April 2026 March 2032 2,300,000 Term loan facility 1,397,240 6.70% May 2026 May 2026 1,468,496 Revolving credit facility 1,215,000 6.69% October 2027 October 2027 930,000 Total unsecured debt financings 4,412,240 4,698,496 Total debt financings $ 7,338,212 $ 7,518,328 Unamortized debt costs (45,224) (43,924) Unamortized debt premiums & discounts (3,488) (3,770) Debt, net of unamortized costs $ 7,289,500 $ 7,470,634 Balance Outstanding (in thousands) Contractual Weighted Avg Interest Rate Maturity Range Weighted Avg Remaining Term From To Excluding impact of derivative instruments: Fixed-rate debt $ 4,665,972 2.67% Apr 2026 May 2034 4.4 years Floating-rate debt $ 2,672,240 6.70% May 2026 Jan 2031 2.6 years Including impact of derivative instruments: Fixed-rate debt $ 4,665,972 2.67% Hedged floating-rate debt $ 1,833,250 3.99% Total fixed and hedged debt $ 6,499,222 3.04% Unhedged floating-rate debt $ 838,990 6.70% Total debt $ 7,338,212 3.45% |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of interest rate derivatives | As of June 30, 2024, the Company had derivative agreements in place to fix interest rates on a portion of the borrowings under its debt facilities with floating interest rates as summarized below: Derivatives Notional Amount (in millions) Weighted Average Weighted Average Interest Rate Swap (1) $1,833.3 2.64% 3.2 years (1) Excludes certain interest rate swaps with an effective date in a future period ("forward starting swaps"). Including these instruments will increase total notional amount by $350.0 million and increase the weighted average remaining term to 4.2 years. |
Schedule of derivatives instruments and their effect on consolidated statements of operations and consolidated statements of comprehensive income | The following table summarizes the impact of derivative instruments on the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Income on a pretax basis (in thousands): Three Months Ended June 30, Six Months Ended June 30, Financial statement caption 2024 2023 2024 2023 Designated Derivative Instruments Realized (gains) losses Interest and debt (income) expense $ (14,433) $ (11,365) $ (28,978) $ (21,153) Unrealized (gains) losses Comprehensive (income) loss $ (14,021) $ (40,070) $ (51,711) $ (24,329) |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The following tables summarizes the Company's segment information and the consolidated totals reported (in thousands): Three Months Ended June 30, 2024 2023 Equipment Equipment Totals Equipment Equipment Totals Total leasing revenues $ 376,865 $ 2,124 $ 378,989 $ 384,826 $ 1,713 $ 386,539 Trading margin — 1,922 1,922 — 1,914 1,914 Net gain on sale of leasing equipment (38,118) — (38,118) 21,583 — 21,583 Depreciation and amortization expense 135,330 206 135,536 146,687 193 146,880 Interest and debt expense 61,217 169 61,386 57,000 314 57,314 Segment income (loss) before income taxes (1) 86,919 3,671 90,590 152,937 3,121 156,058 Purchases of leasing equipment and investments in finance leases (2) $ 293,852 $ — $ 293,852 $ 84,198 $ — $ 84,198 Six Months Ended June 30, 2024 2023 Equipment Equipment Totals Equipment Equipment Totals Total leasing revenues $ 746,554 $ 3,720 $ 750,274 $ 780,677 $ 3,585 $ 784,262 Trading margin — 2,299 2,299 — 2,983 2,983 Net gain on sale of leasing equipment (23,496) — (23,496) 37,083 — 37,083 Depreciation and amortization expense 271,205 412 271,617 294,937 378 295,315 Interest and debt expense 122,505 333 122,838 115,568 570 116,138 Segment income (loss) before income taxes (1) 223,712 5,274 228,986 313,207 5,620 318,827 Purchases of leasing equipment and investments in finance leases (2) $ 368,160 $ — $ 368,160 $ 119,514 $ — $ 119,514 (1) Segment income before income taxes excludes unrealized gains or losses on derivative instruments and debt termination expense. For the three and six months ended June 30, 2024 and June 30, 2023, the Company recorded an immaterial amount of unrealized gains or losses on derivative instruments and did not record any debt termination expense. (2) Represents cash disbursements for purchases of leasing equipment and investments in finance leases as reflected in the Consolidated Statements of Cash Flows for the periods indicated, but excludes cash flows associated with the purchase of equipment held for resale. June 30, 2024 December 31, 2023 Equipment Leasing Equipment Trading Totals Equipment Leasing Equipment Trading Totals Equipment held for sale $ 107,963 $ 19,756 $ 127,719 $ 165,184 $ 20,318 $ 185,502 Goodwill 220,864 15,801 236,665 220,864 15,801 236,665 Total assets $ 10,945,904 $ 65,805 $ 11,011,709 $ 11,164,052 $ 68,816 $ 11,232,868 |
Schedule of revenues by geographic location | The following table summarizes the geographic allocation of total leasing revenues based on customers' primary domicile (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Total leasing revenues: Asia $ 135,328 $ 132,202 $ 259,354 $ 272,437 Europe 204,971 206,082 403,870 414,209 Americas 22,743 33,561 55,545 67,954 Bermuda 1,050 718 2,122 2,085 Other International 14,897 13,976 29,383 27,577 Total $ 378,989 $ 386,539 $ 750,274 $ 784,262 The following table summarizes the geographic allocation of equipment trading revenues based on the location of the sale (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Total equipment trading revenues: Asia $ 6,483 $ 9,308 $ 8,474 $ 16,935 Europe 2,605 5,298 4,538 8,706 Americas 2,840 7,626 6,697 14,275 Bermuda — — — — Other International 2,043 4,194 4,408 5,612 Total $ 13,971 $ 26,426 $ 24,117 $ 45,528 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Dividends | n July 30, 2024, the Company's Board of Directors also approved and declared a cash dividend on its issued and outstanding preference shares, payable on September 13, 2024 to holders of record at the close of business on September 6, 2024 as follows: Preference Share Series 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% $0.3593750 |
Description of the Business, _3
Description of the Business, Basis of Presentation and Accounting Policy Updates - Concentration of Credit Risk (Details) - Operating and Capital Leases Billing - Credit Concentration Risk | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Customer One | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 20% | 19% |
Customer Two | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 19% | 16% |
Customer Three | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 13% | 11% |
Equipment Held for Sale - Fair
Equipment Held for Sale - Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 29, 2023 | |
Fair Value | |||||||
Net gain (loss) on sale of leasing equipment | $ 38,118 | $ (21,583) | $ 23,496 | $ (37,083) | |||
Payments for merger related costs | $ 4,000 | $ 900 | |||||
Dividend, common stock, cash | 200,000 | 38,677 | $ 39,214 | ||||
Dividend distributed to parent | $ 1,900 | ||||||
Employee Stock Option | Brookfield Infrastructure | |||||||
Fair Value | |||||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant (in shares) | 875 | 875 | 750 | ||||
Above Market Lease Intangibles | |||||||
Fair Value | |||||||
Finite-lived intangible assets, amortization expense, next rolling 12 months | $ 700 | $ 700 | |||||
Equipment, net of selling costs | |||||||
Fair Value | |||||||
Net gain (loss) on sale of leasing equipment | (19,870) | (23,361) | (35,688) | (39,894) | |||
Finance Lease | |||||||
Fair Value | |||||||
Net gain (loss) on sale of leasing equipment | 57,103 | 0 | 57,103 | 0 | |||
Equipment held for sale | |||||||
Fair Value | |||||||
Net gain (loss) on sale of leasing equipment | $ 885 | $ 1,778 | $ 2,081 | $ 2,811 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | $ 600 | $ 1,200 | $ 1,300 | $ 2,600 |
Above Market Lease Intangibles | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, amortization expense, next rolling 12 months | $ 700 | $ 700 |
Other Compensation Costs (Detai
Other Compensation Costs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Sep. 28, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Feb. 28, 2024 | Dec. 29, 2023 | |
Stock based compensation plans | |||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, aggregate intrinsic value, outstanding | $ 11,200,000 | ||||||
Share-based payment arrangement, noncash expense | $ 900,000 | $ 2,600,000 | $ 1,900,000 | $ 4,800,000 | |||
Other non-cash compensation costs | 1,640,000 | $ 4,780,000 | |||||
Brookfield Infrastructure | |||||||
Stock based compensation plans | |||||||
Other non-cash compensation costs | 8,000 | ||||||
Merger related costs | 800,000 | 1,600,000 | |||||
Business combination, recognized identifiable assets acquired and liabilities assumed, current liabilities, accounts payable | 3,400,000 | 3,400,000 | |||||
Business combination, recognized identifiable assets acquired and liabilities assumed, current liabilities, unrecognized cost | $ 500,000 | $ 500,000 | |||||
Brookfield Infrastructure | All Share Consideration | |||||||
Stock based compensation plans | |||||||
Cash consideration per acquiree share (in usd per share) | $ 83.16 | ||||||
Employee Stock Option | Brookfield Infrastructure | |||||||
Stock based compensation plans | |||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 5 years | ||||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant (in shares) | 875 | 875 | 750 | ||||
Shares-based compensation arrangement by share-based payment award. number of additional shares authorized (in shares) | 125 | ||||||
Share-based compensation arrangement by share-based payment award equity other than options, vested in period, fair value | $ 16,400,000 |
Other Compensation Costs - Disc
Other Compensation Costs - Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award (Details) - Brookfield Infrastructure | 3 Months Ended |
Jun. 30, 2024 $ / shares | |
Stock based compensation plans | |
Underlying market price (usd per share) | $ 100 |
Employee Stock Option | |
Stock based compensation plans | |
Volatility | 34.35% |
Expected term | 5 years |
Risk-free rate | 4.10% |
Other Compensation Costs - Shar
Other Compensation Costs - Share-Based Payment Arrangement, Expensed and Capitalized, Amount (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Accrued Compensation [Roll Forward] | ||
Compensation expense | $ 1,640,000 | $ 4,780,000 |
Brookfield Infrastructure | ||
Accrued Compensation [Roll Forward] | ||
Accrued compensation liability beginning | 41,600 | |
Compensation expense | 8,000 | |
Payments | (18,000) | |
Accrued compensation liability ending | 31,600 | |
Unrecognized compensation costs | $ 4,000 |
Other Equity Matters (Details)
Other Equity Matters (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Class of Stock [Line Items] | ||||
Dividend, common stock, cash | $ 200,000 | $ 38,677 | $ 39,214 | |
Payments for merger related costs | $ 4,000 | 900 | ||
Dividend distributed to parent | $ 1,900 | |||
Preferred stock, redemption price per share (in dollars per share) | $ 25 | |||
Preferred Shares | ||||
Class of Stock [Line Items] | ||||
Cumulative unpaid preferred dividends | $ 2,200 | |||
Treasury Shares | ||||
Class of Stock [Line Items] | ||||
Percentage acquired | 100% |
Other Equity Matters - Preferre
Other Equity Matters - Preferred Share (Details) - USD ($) $ in Thousands | 1 Months Ended | |||||
Aug. 31, 2021 | Nov. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2024 | |
Class of Stock [Line Items] | ||||||
Preferred Stock, Liquidation Preference, Value | $ 730,000 | |||||
Preferred Stock, Liquidation Preference (in shares) | 29,200,000 | |||||
8.50% Series A Cumulative Redeemable Perpetual Preference Shares | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Liquidation Preference, Value | $ 86,250 | |||||
Preferred Stock, Liquidation Preference (in shares) | 3,450,000 | |||||
Dividend Rate | 8.50% | |||||
8.00% Series B Cumulative Redeemable Perpetual Preference Shares | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Liquidation Preference, Value | $ 143,750 | |||||
Preferred Stock, Liquidation Preference (in shares) | 5,750,000 | |||||
Dividend Rate | 8% | |||||
7.375% Series C Cumulative Redeemable Perpetual Preference Shares | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Liquidation Preference, Value | $ 175,000 | |||||
Preferred Stock, Liquidation Preference (in shares) | 7,000,000 | |||||
Dividend Rate | 7.375% | |||||
6.875% Series D Cumulative Redeemable Perpetual Preference Shares | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Liquidation Preference, Value | $ 150,000 | |||||
Preferred Stock, Liquidation Preference (in shares) | 6,000,000 | |||||
Dividend Rate | 6.875% | |||||
5.75% Series E Cumulative Redeemable Perpetual Preference Shares | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Liquidation Preference, Value | $ 175,000 | |||||
Preferred Stock, Liquidation Preference (in shares) | 7,000,000 | |||||
Dividend Rate | 5.75% |
Other Equity Matters Dividends
Other Equity Matters Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
8.50% Series A Cumulative Redeemable Perpetual Preference Shares | ||||
Dividends Payable [Line Items] | ||||
Per Share Payment (in dollars per share) | $ 0.53 | $ 0.53 | $ 1.06 | $ 1.06 |
Dividends | $ 1.8 | $ 1.8 | $ 3.6 | $ 3.6 |
8.00% Series B Cumulative Redeemable Perpetual Preference Shares | ||||
Dividends Payable [Line Items] | ||||
Per Share Payment (in dollars per share) | $ 0.50 | $ 0.50 | $ 1 | $ 1 |
Dividends | $ 2.9 | $ 2.9 | $ 5.8 | $ 5.8 |
7.375% Series C Cumulative Redeemable Perpetual Preference Shares | ||||
Dividends Payable [Line Items] | ||||
Per Share Payment (in dollars per share) | $ 0.46 | $ 0.46 | $ 0.92 | $ 0.92 |
Dividends | $ 3.2 | $ 3.2 | $ 6.4 | $ 6.4 |
6.875% Series D Cumulative Redeemable Perpetual Preference Shares | ||||
Dividends Payable [Line Items] | ||||
Per Share Payment (in dollars per share) | $ 0.43 | $ 0.43 | $ 0.86 | $ 0.86 |
Dividends | $ 2.6 | $ 2.6 | $ 5.2 | $ 5.2 |
5.75% Series E Cumulative Redeemable Perpetual Preference Shares | ||||
Dividends Payable [Line Items] | ||||
Per Share Payment (in dollars per share) | $ 0.36 | $ 0.36 | $ 0.72 | $ 0.72 |
Dividends | $ 2.5 | $ 2.5 | $ 5.1 | $ 5.1 |
Preferred Shares | ||||
Dividends Payable [Line Items] | ||||
Dividends | $ 13 | $ 13 | $ 26.1 | $ 26.1 |
Leases - Financial Statement Im
Leases - Financial Statement Impact (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Lessee, Lease, Description [Line Items] | |||||
Right-of-use asset - operating | $ 10,411 | $ 10,411 | $ 10,093 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable and other accrued expenses | Accounts payable and other accrued expenses | Accounts payable and other accrued expenses | ||
Lease liability - operating | $ 14,220 | $ 14,220 | $ 13,510 | ||
Administrative expenses | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease cost | $ 732 | $ 708 | $ 1,468 | $ 1,475 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Operating lease, payments | $ 1 | $ 1.6 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Operating Lease (Details) | Jun. 30, 2024 |
Leases [Abstract] | |
Weighted-Average Remaining Lease Term | 9 years 1 month 6 days |
Weighted-Average Discount Rate | 5.72% |
Leases - Operating Leases Lesso
Leases - Operating Leases Lessor Maturities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
Lessor, Operating Lease, Payment to be Received, Recognized, Year One | $ 38,346 |
2025 | 66,005 |
2026 | 43,237 |
2027 | 16,737 |
2028 | 15,568 |
2029 and thereafter | 43,258 |
Total | $ 223,151 |
Leases - Net Investment in Fina
Leases - Net Investment in Finance Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Lessee, Lease, Description [Line Items] | ||
Future minimum lease payment receivable | $ 2,087,839 | $ 1,928,167 |
Estimated residual receivable | 269,360 | 218,199 |
Gross finance lease receivables | 2,357,199 | 2,146,366 |
Lessor, Unearned Income | (725,647) | (636,486) |
Net investment in finance leases | 1,631,552 | 1,507,292 |
Lessor, Finance Lease Reserve | $ 0 | $ (2,588) |
Customer Concentration Risk | Lease Finance Portfolio Benchmark | Customer One | ||
Lessee, Lease, Description [Line Items] | ||
Concentration Risk, Percentage | 93% |
Debt - Key Term and Carrying Va
Debt - Key Term and Carrying Value (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Debt outstanding | $ 7,338,212 | $ 7,518,328 |
Unamortized debt costs | (45,224) | (43,924) |
Unamortized debt premiums & discounts | (3,488) | (3,770) |
Debt, net of unamortized debt costs | 7,289,500 | 7,470,634 |
Secured Debt Financings | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 2,925,972 | 2,819,832 |
Securitization ("ABS") term instruments | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 2,865,972 | 2,579,832 |
Debt instrument, interest rate, effective percentage | 2.58% | |
Securitization warehouse | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 60,000 | 240,000 |
Debt instrument, interest rate, effective percentage | 6.95% | |
Unsecured Debt Financings | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 4,412,240 | 4,698,496 |
Senior notes | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 1,800,000 | 2,300,000 |
Debt instrument, interest rate, effective percentage | 2.82% | |
Term loan facility | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 1,397,240 | 1,468,496 |
Debt instrument, interest rate, effective percentage | 6.70% | |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 1,215,000 | $ 930,000 |
Debt instrument, interest rate, effective percentage | 6.69% |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 6 Months Ended | ||||||||
Jan. 22, 2024 | Jun. 30, 2024 | Jul. 09, 2024 | Jul. 08, 2024 | Jul. 07, 2024 | Apr. 03, 2024 | Mar. 31, 2024 | Mar. 29, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||||||||
Letter of credit outstanding, amount | $ 18,700,000 | ||||||||
Restricted cash | $ 38,300,000 | ||||||||
Debt and lease obligation | $ 7,338,212,000 | $ 7,518,328,000 | |||||||
ABS Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 450,000,000 | ||||||||
Contractual Weighted Avg Interest Rate | 5.55% | ||||||||
ABS Facility | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 351,900,000 | ||||||||
Contractual Weighted Avg Interest Rate | 5.63% | ||||||||
Excluding impact of derivative instruments: | Fixed-rate debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Contractual Weighted Avg Interest Rate | 2.67% | ||||||||
Weighted Avg Remaining Term | 4 years 4 months 24 days | ||||||||
Balance Outstanding (in thousands) | $ 4,665,972,000,000 | ||||||||
Excluding impact of derivative instruments: | Floating-rate debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Contractual Weighted Avg Interest Rate | 6.70% | ||||||||
Weighted Avg Remaining Term | 2 years 7 months 6 days | ||||||||
Balance Outstanding (in thousands) | $ 2,672,240,000,000 | ||||||||
Including impact of derivative instruments: | |||||||||
Debt Instrument [Line Items] | |||||||||
Contractual Weighted Avg Interest Rate | 3.45% | ||||||||
Balance Outstanding (in thousands) | $ 7,338,212,000,000 | ||||||||
Including impact of derivative instruments: | Fixed-rate debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Contractual Weighted Avg Interest Rate | 2.67% | ||||||||
Balance Outstanding (in thousands) | $ 4,665,972,000,000 | ||||||||
Including impact of derivative instruments: | Total fixed and hedged debt | Designated as Hedging Instrument | |||||||||
Debt Instrument [Line Items] | |||||||||
Contractual Weighted Avg Interest Rate | 3.04% | ||||||||
Balance Outstanding (in thousands) | $ 6,499,222,000,000 | ||||||||
Including impact of derivative instruments: | Hedged floating-rate debt | Designated as Hedging Instrument | |||||||||
Debt Instrument [Line Items] | |||||||||
Contractual Weighted Avg Interest Rate | 3.99% | ||||||||
Balance Outstanding (in thousands) | $ 1,833,250,000,000 | ||||||||
Including impact of derivative instruments: | Unhedged floating-rate debt | Not Designated as Hedging Instrument | |||||||||
Debt Instrument [Line Items] | |||||||||
Contractual Weighted Avg Interest Rate | 6.70% | ||||||||
Balance Outstanding (in thousands) | $ 838,990,000,000 | ||||||||
Standby Letters of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, collateral amount | $ 57,000,000 | ||||||||
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 1,125,000,000 | ||||||||
Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt and lease obligation | $ 1,800,000,000 | 2,300,000,000 | |||||||
Senior notes | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||
Debt instrument, interest rate, stated percentage | 1.15% | ||||||||
Senior notes | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 10 years | ||||||||
Senior notes | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 5 years | ||||||||
Term Loan Facility | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 2,000,000,000 | ||||||||
Debt instrument, face amount | $ 1,750,000,000 | ||||||||
Revolving credit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 2,000,000,000 | ||||||||
Debt and lease obligation | 1,215,000,000 | 930,000,000 | |||||||
Line of Credit and Second Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, remaining borrowing capacity | $ 1,115,300,000 | ||||||||
Secured Overnight Financing Rate (SOFR) | Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.35% | ||||||||
Secured Overnight Financing Rate (SOFR) | Revolving credit facility | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 2.60% | 1.60% | |||||||
Secured Overnight Financing Rate (SOFR) | Line of Credit and Second Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.35% | ||||||||
Level 2 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt and lease obligation | $ 6,825,800,000 | $ 6,905,900,000 |
Debt - Outstanding Debt (Detail
Debt - Outstanding Debt (Details) | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Excluding impact of derivative instruments: | Fixed-rate debt | |
Debt Instrument [Line Items] | |
Balance Outstanding (in thousands) | $ 4,665,972,000,000 |
Contractual Weighted Avg Interest Rate | 2.67% |
Weighted Avg Remaining Term | 4 years 4 months 24 days |
Excluding impact of derivative instruments: | Floating-rate debt | |
Debt Instrument [Line Items] | |
Balance Outstanding (in thousands) | $ 2,672,240,000,000 |
Contractual Weighted Avg Interest Rate | 6.70% |
Weighted Avg Remaining Term | 2 years 7 months 6 days |
Including impact of derivative instruments: | |
Debt Instrument [Line Items] | |
Balance Outstanding (in thousands) | $ 7,338,212,000,000 |
Contractual Weighted Avg Interest Rate | 3.45% |
Including impact of derivative instruments: | Fixed-rate debt | |
Debt Instrument [Line Items] | |
Balance Outstanding (in thousands) | $ 4,665,972,000,000 |
Contractual Weighted Avg Interest Rate | 2.67% |
Designated as Hedging Instrument | Including impact of derivative instruments: | Hedged floating-rate debt | |
Debt Instrument [Line Items] | |
Balance Outstanding (in thousands) | $ 1,833,250,000,000 |
Contractual Weighted Avg Interest Rate | 3.99% |
Designated as Hedging Instrument | Including impact of derivative instruments: | Total fixed and hedged debt | |
Debt Instrument [Line Items] | |
Balance Outstanding (in thousands) | $ 6,499,222,000,000 |
Contractual Weighted Avg Interest Rate | 3.04% |
Not Designated as Hedging Instrument | Including impact of derivative instruments: | Unhedged floating-rate debt | |
Debt Instrument [Line Items] | |
Balance Outstanding (in thousands) | $ 838,990,000,000 |
Contractual Weighted Avg Interest Rate | 6.70% |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Derivative [Line Items] | |
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 43.6 |
Not Designated as Hedging Instrument | Interest Rate Swap | |
Derivative [Line Items] | |
Cash collateral for interest rate swap contracts | 1.5 |
Not Designated as Hedging Instrument | Interest Rate Cap | |
Derivative [Line Items] | |
Derivative, notional amount | $ 500 |
Derivative Instruments - Intere
Derivative Instruments - Interest Rate Swap/Caps (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Interest Rate Swap | |
Fair Value of Derivative Instruments | |
Weighted Average Fixed Leg (Pay) Interest Rate | 2.64% |
Weighted Average Remaining Term | 3 years 2 months 12 days |
Designated as Hedging Instrument | Interest Rate Swap | |
Fair Value of Derivative Instruments | |
Notional Amount (in millions) | $ 1,833.3 |
Designated as Hedging Instrument | Forward Starting Swaps | |
Fair Value of Derivative Instruments | |
Total Notional amount forward starting interest rate swap | $ 350 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value of Derivative Instruments | ||||
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest and debt expense | |||
Unrealized (gains) losses | $ (78,006) | $ (169,971) | $ (227,067) | $ (295,837) |
Interest Rate Swap | Designated as Hedging Instrument | ||||
Fair Value of Derivative Instruments | ||||
Realized (gains) losses | (14,433) | (11,365) | (28,978) | (21,153) |
Comprehensive (income) loss | Interest Rate Swap | Designated as Hedging Instrument | ||||
Fair Value of Derivative Instruments | ||||
Unrealized (gains) losses | $ (14,021) | $ (40,070) | $ (51,711) | $ (24,329) |
Segment and Geographic Inform_3
Segment and Geographic Information (Details) | 6 Months Ended |
Jun. 30, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Segment and Geographic Inform_4
Segment and Geographic Information - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Industry Segment Information | |||||
Total leasing revenues | $ 378,989 | $ 386,539 | $ 750,274 | $ 784,262 | |
Trading margin | 1,922 | 1,914 | 2,299 | 2,983 | |
Net gain (loss) on sale of leasing equipment | (38,118) | 21,583 | (23,496) | 37,083 | |
Depreciation and amortization expense | 135,536 | 146,880 | 271,617 | 295,315 | |
Interest and debt expense | 61,386 | 57,314 | 122,838 | 116,138 | |
Income before income taxes | 90,590 | 156,058 | (228,986) | 318,827 | |
Payments to acquire productive assets | 293,852 | 84,198 | 368,160 | 119,514 | |
Equipment held for sale | 127,719 | 127,719 | $ 185,502 | ||
Goodwill at the end of the period | 236,665 | 236,665 | 236,665 | ||
Total assets at the end of the period | 11,011,709 | 11,011,709 | 11,232,868 | ||
Equipment Leasing | |||||
Industry Segment Information | |||||
Total leasing revenues | 376,865 | 384,826 | 746,554 | 780,677 | |
Trading margin | 0 | 0 | 0 | 0 | |
Net gain (loss) on sale of leasing equipment | (38,118) | (23,496) | |||
Depreciation and amortization expense | 135,330 | 146,687 | 271,205 | 294,937 | |
Interest and debt expense | 61,217 | 57,000 | 122,505 | 115,568 | |
Income before income taxes | 86,919 | 152,937 | 223,712 | 313,207 | |
Payments to acquire productive assets | 293,852 | 84,198 | 368,160 | 119,514 | |
Equipment held for sale | 107,963 | 107,963 | 165,184 | ||
Goodwill at the end of the period | 220,864 | 220,864 | 220,864 | ||
Total assets at the end of the period | 10,945,904 | 10,945,904 | 11,164,052 | ||
Equipment Trading | |||||
Industry Segment Information | |||||
Total leasing revenues | 2,124 | 1,713 | 3,720 | 3,585 | |
Trading margin | 1,922 | 1,914 | 2,299 | 2,983 | |
Net gain (loss) on sale of leasing equipment | 0 | 0 | 0 | 0 | |
Depreciation and amortization expense | 206 | 193 | 412 | 378 | |
Interest and debt expense | 169 | 314 | 333 | 570 | |
Income before income taxes | 3,671 | 3,121 | 5,274 | 5,620 | |
Payments to acquire productive assets | 0 | $ 0 | 0 | $ 0 | |
Equipment held for sale | 19,756 | 19,756 | 20,318 | ||
Goodwill at the end of the period | 15,801 | 15,801 | 15,801 | ||
Total assets at the end of the period | $ 65,805 | $ 65,805 | $ 68,816 |
Segment and Geographic Inform_5
Segment and Geographic Information - Geographic Allocation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Geographic Segment Information | ||||
Total leasing revenues | $ 378,989 | $ 386,539 | $ 750,274 | $ 784,262 |
Equipment trading revenues | 13,971 | 26,426 | 24,117 | 45,528 |
Asia | ||||
Geographic Segment Information | ||||
Total leasing revenues | 135,328 | 132,202 | 259,354 | 272,437 |
Equipment trading revenues | 6,483 | 9,308 | 8,474 | 16,935 |
Europe | ||||
Geographic Segment Information | ||||
Total leasing revenues | 204,971 | 206,082 | 403,870 | 414,209 |
Equipment trading revenues | 2,605 | 5,298 | 4,538 | 8,706 |
Americas | ||||
Geographic Segment Information | ||||
Total leasing revenues | 22,743 | 33,561 | 55,545 | 67,954 |
Equipment trading revenues | 2,840 | 7,626 | 6,697 | 14,275 |
Bermuda | ||||
Geographic Segment Information | ||||
Total leasing revenues | 1,050 | 718 | 2,122 | 2,085 |
Equipment trading revenues | 0 | 0 | 0 | 0 |
Other international | ||||
Geographic Segment Information | ||||
Total leasing revenues | 14,897 | 13,976 | 29,383 | 27,577 |
Equipment trading revenues | $ 2,043 | $ 4,194 | $ 4,408 | $ 5,612 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2024 USD ($) shares |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase commitment payable | $ | $ 551.6 |
Common shares appraised (in shares) | shares | 1,184,300 |
Percentage of common shares appraised | 2.15% |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate | 14.50% | 9.20% | 11.30% | 8.50% |
Related Party Transactions (Det
Related Party Transactions (Details) - TriStar - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||
Percentage Of Ownership | 50% | 50% | |
Direct Financing Lease Receivable | |||
Related Party Transaction [Line Items] | |||
Proceeds from (Repayments of) Related Party Debt | $ 0.5 | $ 1 | |
Loans and Leases Receivable, Related Parties | $ 4.9 | $ 4.9 | $ 5.7 |
Subsequent Events - Dividends (
Subsequent Events - Dividends (Details) - $ / shares | 1 Months Ended | |||||
Jul. 30, 2024 | Aug. 31, 2021 | Nov. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 31, 2020 | |
8.50% Series A Cumulative Redeemable Perpetual Preference Shares | ||||||
Subsequent Event [Line Items] | ||||||
Dividend Rate | 8.50% | |||||
8.50% Series A Cumulative Redeemable Perpetual Preference Shares | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Dividend Rate | 8.50% | |||||
Dividend Per Share (in dollars per share) | $ 0.5312500 | |||||
8.00% Series B Cumulative Redeemable Perpetual Preference Shares | ||||||
Subsequent Event [Line Items] | ||||||
Dividend Rate | 8% | |||||
8.00% Series B Cumulative Redeemable Perpetual Preference Shares | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Dividend Rate | 8% | |||||
Dividend Per Share (in dollars per share) | $ 0.5000000 | |||||
7.375% Series C Cumulative Redeemable Perpetual Preference Shares | ||||||
Subsequent Event [Line Items] | ||||||
Dividend Rate | 7.375% | |||||
7.375% Series C Cumulative Redeemable Perpetual Preference Shares | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Dividend Rate | 7.375% | |||||
Dividend Per Share (in dollars per share) | $ 0.4609375 | |||||
6.875% Series D Cumulative Redeemable Perpetual Preference Shares | ||||||
Subsequent Event [Line Items] | ||||||
Dividend Rate | 6.875% | |||||
6.875% Series D Cumulative Redeemable Perpetual Preference Shares | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Dividend Rate | 6.875% | |||||
Dividend Per Share (in dollars per share) | $ 0.4296875 | |||||
5.75% Series E Cumulative Redeemable Perpetual Preference Shares | ||||||
Subsequent Event [Line Items] | ||||||
Dividend Rate | 5.75% | |||||
5.75% Series E Cumulative Redeemable Perpetual Preference Shares | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Dividend Rate | 5.75% | |||||
Dividend Per Share (in dollars per share) | $ 0.3593750 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Jul. 09, 2024 | Jul. 08, 2024 | Apr. 03, 2024 |
ABS Facility | |||
Subsequent Event [Line Items] | |||
Maximum borrowing capacity | $ 450 | ||
Weighted average interest rate | 5.55% | ||
Subsequent Event | ABS Facility | |||
Subsequent Event [Line Items] | |||
Maximum borrowing capacity | $ 351.9 | ||
Weighted average interest rate | 5.63% | ||
Subsequent Event | Term Loan Facility | |||
Subsequent Event [Line Items] | |||
Maximum borrowing capacity | $ 2,000 | ||
Line of credit facility, accordion feature, increase limit | 1,000 | $ 500 | |
Debt instrument, face amount | $ 1,750 |