Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 27, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MGRC | ||
Entity Registrant Name | MCGRATH RENTCORP | ||
Entity Central Index Key | 752,714 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 23,947,737 | ||
Entity Public Float | $ 710,906,155 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash | $ 852 | $ 1,103 |
Accounts receivable, net of allowance for doubtful accounts of $2,087 in 2016 and 2015 | 96,877 | 95,017 |
Income taxes receivable | 11,000 | |
Rental equipment, at cost: | ||
Relocatable modular buildings | 769,190 | 736,875 |
Electronic test equipment | 246,325 | 262,945 |
Liquid and solid containment tanks and boxes | 308,542 | 310,263 |
Rental equipment, gross | 1,324,057 | 1,310,083 |
Less accumulated depreciation | (467,686) | (440,482) |
Rental equipment, net | 856,371 | 869,601 |
Property, plant and equipment, net | 112,190 | 109,753 |
Prepaid expenses and other assets | 25,583 | 28,802 |
Intangible assets, net | 8,595 | 9,465 |
Goodwill | 27,808 | 27,808 |
Total assets | 1,128,276 | 1,152,549 |
Liabilities: | ||
Notes payable | 326,266 | 381,281 |
Accounts payable and accrued liabilities | 78,205 | 71,942 |
Deferred income | 37,499 | 36,288 |
Deferred income taxes, net | 292,019 | 283,351 |
Total liabilities | 733,989 | 772,862 |
Commitments and contingencies (Note 7) | ||
Shareholders’ equity: | ||
Common stock, no par value — authorized 40,000 shares Issued and outstanding — 23,948 shares as of December 31, 2016 and 23,851 shares as of December 31, 2015 | 101,821 | 101,046 |
Retained earnings | 292,521 | 278,708 |
Accumulated other comprehensive loss | (55) | (67) |
Total shareholders’ equity | 394,287 | 379,687 |
Total liabilities and shareholders’ equity | $ 1,128,276 | $ 1,152,549 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,087 | $ 2,087 |
Common stock, par value | ||
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 23,948,000 | 23,851,000 |
Common Stock, shares outstanding | 23,948,000 | 23,851,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||
Rental | $ 271,388 | $ 273,696 | $ 269,575 |
Rental related services | 75,859 | 73,314 | 64,132 |
Rental operations | 347,247 | 347,010 | 333,707 |
Sales | 74,410 | 55,385 | 72,248 |
Other | 2,423 | 2,149 | 2,167 |
Total revenues | 424,080 | 404,544 | 408,122 |
Direct costs of rental operations | |||
Depreciation of rental equipment | 72,197 | 75,213 | 72,678 |
Rental related services | 56,374 | 54,719 | 48,849 |
Other | 62,800 | 60,936 | 56,946 |
Total direct costs of rental operations | 191,371 | 190,868 | 178,473 |
Cost of sales | 48,542 | 36,769 | 47,430 |
Total costs of revenues | 239,913 | 227,637 | 225,903 |
Gross profit | 184,167 | 176,907 | 182,219 |
Selling and administrative expenses | 104,908 | 99,950 | 96,859 |
Income from operations | 79,259 | 76,957 | 85,360 |
Other income (expense): | |||
Interest expense | (12,207) | (10,092) | (9,280) |
Gain on sale of property, plant and equipment | 812 | ||
Foreign currency exchange loss | (121) | (488) | (331) |
Income before provision for income taxes | 66,931 | 66,377 | 76,561 |
Provision for income taxes | 28,680 | 25,907 | 30,852 |
Net income | $ 38,251 | $ 40,470 | $ 45,709 |
Earnings per share: | |||
Basic | $ 1.60 | $ 1.60 | $ 1.77 |
Diluted | $ 1.60 | $ 1.59 | $ 1.75 |
Shares used in per share calculations: | |||
Basic | 23,900 | 25,369 | 25,914 |
Diluted | 23,976 | 25,457 | 26,175 |
Cash dividends declared per share | $ 1.02 | $ 1 | $ 0.98 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 38,251 | $ 40,470 | $ 45,709 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 24 | 55 | (82) |
Tax benefit (provision) | (12) | (20) | 11 |
Comprehensive income | $ 38,263 | $ 40,505 | $ 45,638 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 31, 2013 | $ 401,030 | $ 103,023 | $ 298,038 | $ (31) |
Balance, Shares at Dec. 31, 2013 | 25,757,000 | |||
Net income | 45,709 | 45,709 | ||
Share-based compensation | 3,854 | $ 3,854 | ||
Common stock issued under stock plans, net of shares withheld for employee taxes | 1,729 | $ 1,729 | ||
Common stock issued under stock Plans, net of shares withheld for employee taxes, Shares | 294,000 | |||
Excess tax benefit (shortfall) from equity awards | 1,822 | $ 1,822 | ||
Taxes paid related to net share settlement of stock awards | (3,959) | (3,959) | ||
Dividends accrued of $0.98, $1.00, $1.02 per share in 2014,2015 and 2016 | (25,583) | (25,583) | ||
Other comprehensive (loss) gain | (71) | (71) | ||
Balance at Dec. 31, 2014 | 424,531 | $ 106,469 | 318,164 | (102) |
Balance, Shares at Dec. 31, 2014 | 26,051,000 | |||
Net income | 6,846 | |||
Balance at Mar. 31, 2015 | 425,848 | |||
Balance at Dec. 31, 2014 | 424,531 | $ 106,469 | 318,164 | (102) |
Balance, Shares at Dec. 31, 2014 | 26,051,000 | |||
Net income | 40,470 | 40,470 | ||
Share-based compensation | 3,399 | $ 3,399 | ||
Common stock issued under stock plans, net of shares withheld for employee taxes | 2,149 | $ 2,149 | ||
Common stock issued under stock Plans, net of shares withheld for employee taxes, Shares | 208,000 | |||
Common stock repurchased | $ (63,953) | $ (9,119) | (54,834) | |
Common stock repurchased, Shares | (2,407,974) | (2,408,000) | ||
Excess tax benefit (shortfall) from equity awards | $ (292) | $ (292) | ||
Taxes paid related to net share settlement of stock awards | (1,560) | (1,560) | ||
Dividends accrued of $0.98, $1.00, $1.02 per share in 2014,2015 and 2016 | (25,092) | (25,092) | ||
Other comprehensive (loss) gain | 35 | 35 | ||
Balance at Dec. 31, 2015 | $ 379,687 | $ 101,046 | 278,708 | (67) |
Balance, Shares at Dec. 31, 2015 | 23,851,000 | 23,851,000 | ||
Balance at Mar. 31, 2015 | $ 425,848 | |||
Net income | 8,490 | |||
Balance at Jun. 30, 2015 | 426,823 | |||
Net income | 13,616 | |||
Balance at Sep. 30, 2015 | 389,464 | |||
Net income | 11,518 | |||
Balance at Dec. 31, 2015 | $ 379,687 | $ 101,046 | 278,708 | (67) |
Balance, Shares at Dec. 31, 2015 | 23,851,000 | 23,851,000 | ||
Net income | $ 6,566 | |||
Balance at Mar. 31, 2016 | 380,512 | |||
Balance at Dec. 31, 2015 | $ 379,687 | $ 101,046 | 278,708 | (67) |
Balance, Shares at Dec. 31, 2015 | 23,851,000 | 23,851,000 | ||
Net income | $ 38,251 | 38,251 | ||
Share-based compensation | 3,091 | $ 3,091 | ||
Common stock issued under stock plans, net of shares withheld for employee taxes | $ 37 | $ 37 | ||
Common stock issued under stock Plans, net of shares withheld for employee taxes, Shares | 97,000 | |||
Common stock repurchased, Shares | 0 | |||
Excess tax benefit (shortfall) from equity awards | $ (1,066) | $ (1,066) | ||
Taxes paid related to net share settlement of stock awards | (1,287) | (1,287) | ||
Dividends accrued of $0.98, $1.00, $1.02 per share in 2014,2015 and 2016 | (24,438) | (24,438) | ||
Other comprehensive (loss) gain | 12 | 12 | ||
Balance at Dec. 31, 2016 | $ 394,287 | $ 101,821 | 292,521 | (55) |
Balance, Shares at Dec. 31, 2016 | 23,948,000 | 23,948,000 | ||
Balance at Mar. 31, 2016 | $ 380,512 | |||
Net income | 9,079 | |||
Balance at Jun. 30, 2016 | 383,313 | |||
Net income | 12,872 | |||
Balance at Sep. 30, 2016 | 390,600 | |||
Net income | 9,734 | |||
Balance at Dec. 31, 2016 | $ 394,287 | $ 101,821 | $ 292,521 | $ (55) |
Balance, Shares at Dec. 31, 2016 | 23,948,000 | 23,948,000 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Dividends accrued per share | $ 1.02 | $ 1 | $ 0.98 |
Retained Earnings [Member] | |||
Dividends accrued per share | $ 1.02 | $ 1 | $ 0.98 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Cash Flows from Operating Activities: | |||
Net income | $ 38,251 | $ 40,470 | $ 45,709 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 81,179 | 84,280 | 81,125 |
Provision for doubtful accounts | 1,892 | 2,149 | 1,825 |
Share-based compensation | 3,091 | 3,399 | 3,854 |
Gain on sale of used rental equipment | (13,739) | (11,902) | (15,368) |
Gain on sale of property, plant and equipment | (812) | ||
Foreign currency exchange loss | 121 | 488 | 331 |
Amortization of debt issuance cost | 51 | 52 | 14 |
Change in: | |||
Accounts receivable | (3,752) | 3,628 | (15,607) |
Income taxes receivable | 11,000 | (11,000) | |
Prepaid expenses and other assets | 3,219 | 12,910 | (13,528) |
Accounts payable and accrued liabilities | 11,492 | (1,520) | 10,662 |
Deferred income | 1,211 | 7,149 | 5,136 |
Deferred income taxes | 7,745 | 14,449 | 19,645 |
Net cash provided by operating activities | 141,761 | 144,552 | 122,986 |
Cash Flows from Investing Activities: | |||
Purchases of rental equipment | (79,038) | (131,037) | (152,197) |
Purchases of property, plant and equipment | (10,548) | (9,321) | (12,740) |
Proceeds from sale of used rental equipment | 29,406 | 26,214 | 32,556 |
Proceeds from sale of property, plant and equipment | 2,501 | ||
Net cash used in investing activities | (60,180) | (114,144) | (129,880) |
Cash Flows from Financing Activities: | |||
Net borrowings (repayments) under bank lines of credit | (35,066) | 18,963 | 12,475 |
Principal payments on Series A senior notes | (20,000) | (20,000) | (20,000) |
Proceeds from the exercise of stock options | 37 | 2,149 | 1,729 |
Excess tax benefit (shortfall) from exercise of stock awards | (1,066) | (292) | 1,822 |
Taxes paid related to net share settlement of stock awards | (1,287) | (1,560) | (3,959) |
Repurchase of common stock | (63,953) | ||
Payment of dividends | (24,448) | (25,779) | (25,551) |
Net cash provided by (used in) financing activities | (81,830) | (30,472) | 6,516 |
Effect of foreign currency exchange rate changes on cash | (2) | (85) | |
Net decrease in cash | (251) | (64) | (463) |
Cash balance, beginning of period | 1,103 | 1,167 | 1,630 |
Cash balance, end of period | 852 | 1,103 | 1,167 |
Supplemental Disclosure of Cash Flow Information: | |||
Interest paid, during the period | 12,436 | 10,041 | 9,074 |
Net income taxes paid, during the period | 15,555 | 2,498 | 22,275 |
Dividends accrued during the period, not yet paid | 6,147 | 6,019 | 6,526 |
Rental equipment acquisitions, not yet paid | $ 2,876 | 7,280 | 4,942 |
Series B Senior Notes | |||
Cash Flows from Financing Activities: | |||
Borrowings | $ 40,000 | ||
Series C Senior Notes | |||
Cash Flows from Financing Activities: | |||
Borrowings | $ 60,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization McGrath RentCorp and its wholly-owned subsidiaries (the “Company”) is a California corporation organized in 1979. The Company is a diversified business to business rental company with four rental divisions; relocatable modular buildings, portable storage containers, electronic test equipment and liquid and solid containment tanks and boxes. Although the Company’s primary emphasis is on equipment rentals, sales of equipment occur in the normal course of business. The Company is comprised of four reportable business segments: modular building and portable storage segment (“Mobile Modular”), electronic test equipment segment (“TRS-RenTelco”), containment solutions for the storage of hazardous and non-hazardous liquids and solids segment (“Adler Tanks”) and classroom manufacturing division selling modular classrooms in California (“Enviroplex”). Principles of Consolidation The consolidated financial statements include the accounts of McGrath RentCorp and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Revenue Recognition Rental revenue from operating leases is recognized on a straight-line basis over the term of the lease. Rental billings for periods extending beyond period end are recorded as deferred income and are recognized when earned. Rental related services revenue is primarily associated with relocatable modular building and liquid and solid containment tanks and boxes leases. For modular building leases, rental related services revenue consists of billings to customers for modifications, delivery, installation, additional site-related work, and dismantle and return delivery. For modular building leases, revenue related to delivery, installation, dismantle and return delivery are an integral part of the negotiated lease agreement with customers and are recognized on a straight-line basis over the term of the lease. For liquid and solid containment solutions, rental related services revenue consists of billings for delivery, removal and cleaning of the tanks and boxes. These revenues are recognized in the period performed. Sales revenue is recognized upon delivery and installation of the equipment to customers. Certain leases are accounted for as sales-type leases. For these leases, sales revenue and the related accounts receivable are recognized upon delivery and installation of the equipment and the unearned interest is recognized over the lease term on a basis which results in a constant rate of return on the unrecovered lease investment. Other revenue is recognized when earned and primarily includes interest income on sales-type leases, rental income on facility rentals and certain logistics services. Sales taxes charged to customers are reported on a net basis and are excluded from revenues and expenses. Depreciation of Rental Equipment Rental equipment is depreciated on a straight-line basis for financial reporting purposes and on an accelerated basis for income tax purposes. The costs of major refurbishment of relocatable modular buildings and portable storage containers are capitalized to the extent the refurbishment significantly adds value to, or extends the life of the equipment. Maintenance and repairs are expensed as incurred. The estimated useful lives and residual values of the Company’s rental equipment used for financial reporting purposes are as follows: Relocatable modular buildings 18 years, 50% residual value Relocatable modular accessories 3 to 18 years, no residual value Portable storage containers 25 years, 62.5% residual value Electronic test equipment and accessories 1 to 8 years, no residual value Liquid and solid containment tanks and boxes and accessories 10 to 20 years, no residual value Costs of Rental Related Services Costs of rental related services are primarily associated with relocatable modular building leases and liquid and solid containment tank and boxes. Modular building leases consist of costs for services to be provided under the negotiated lease agreement for delivery, installation, modifications, skirting, additional site-related work, and dismantle and return delivery. Costs related to these services are recognized on a straight-line basis over the term of the lease. Costs of rental related services associated with liquid and solid containment solutions consists of costs of delivery, removal and cleaning of the tanks and boxes. These costs are recognized in the period the service is performed. Impairment of Long-Lived Assets The Company evaluates the carrying value of rental equipment and identifiable definite lived intangible assets for impairment whenever events or circumstances have occurred that would indicate the carrying amount may not be fully recoverable. A key element in determining the recoverability of long-lived assets is the Company’s outlook as to the future market conditions for its rental equipment. If the carrying amount is not fully recoverable, an impairment loss is recognized to reduce the carrying amount to fair value. The Company determines fair value based upon the condition of the rental equipment and the projected net cash flows from its rental and sale considering current market conditions. Goodwill and identifiable indefinite lived assets are evaluated for potential impairment annually or when circumstances indicate potential impairment may have occurred. Impairment losses, if any, are determined based upon the excess of carrying value over the estimated fair value of the asset. There were no impairments of long-lived assets during the years ended December 31, 2016, 2015 and 2014. Other Direct Costs of Rental Operations Other direct costs of rental operations include direct labor, supplies, repairs, insurance, property taxes, license fees and certain modular lease costs charged to customers in the negotiated rental rate, which are recognized on a straight-line basis over the term of the lease. Cost of Sales Cost of sales in the Consolidated Statements of Income includes the carrying value of the equipment sold and all direct costs associated with the sale. Warranty Reserves Sales of new relocatable modular buildings, portable storage containers, electronic test equipment and related accessories and liquid and solid containment tanks and boxes not manufactured by the Company are typically covered by warranties provided by the manufacturer of the products sold. The Company typically provides limited 90-day warranties for certain sales of used rental equipment and one-year warranties on equipment manufactured by Enviroplex. Although the Company’s policy is to provide reserves for warranties when required for specific circumstances, the Company has not found it necessary to establish such reserves to date as warranty costs have not been significant. Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is recognized on a straight-line basis for financial reporting purposes, and on an accelerated basis for income tax purposes. Depreciation expenses for property, plant and equipment is included in “Selling and administrative expenses” and “Rental related services” in the Consolidated Statements of Income. Maintenance and repairs are expensed as incurred. Property, plant and equipment consist of the following: (dollar amounts in thousands) Estimated useful life December 31, in years 2016 2015 Land Indefinite $ 45,928 $ 40,378 Land improvements 20 – 50 42,677 42,004 Buildings 30 26,105 25,520 Furniture, office and computer equipment 3 – 10 35,215 34,053 Machinery and service equipment 5 – 25 30,416 28,642 180,341 170,597 Less accumulated depreciation (68,854 ) (61,410 ) 111,487 109,187 Construction in progress 703 566 $ 112,190 $ 109,753 Property, plant and equipment depreciation expense was $8.1 million, $8.2 million and $7.6 million for the years ended December 31, 2016, 2015 and 2014, respectively. Construction in progress at December 31, 2016 and 2015 consisted primarily of costs related to acquisition of land and land improvements and information technology upgrades. Capitalized Software Costs The Company capitalizes certain development costs incurred in connection with its internal use software. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, direct internal and external costs are capitalized until the software is substantially complete and ready for its intended use. These costs generally include external direct costs of materials and services consumed in the project and internal costs, such as payroll and benefits of those employees directly associated with the development of the software. Maintenance and training costs are expensed as incurred. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized software costs are included in property, plant and equipment. The Company capitalized $0.2 million and $0.6 million in internal use software during the years ended December 31, 2016 and 2015, respectively. Advertising Costs Advertising costs are expensed as incurred. Total advertising expenses were $2.9 million, $2.8 million and $2.4 million for the years ended December 31, 2016, 2015 and 2014. Income Taxes Income taxes are accounted for using an asset and liability approach. Deferred tax assets and liabilities are recorded for the effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and deferred tax liabilities are adjusted to the extent necessary to reflect tax rates expected to be in effect when temporary differences reverse. Adjustments may be required to deferred tax assets and deferred tax liabilities due to changes in tax laws and audit adjustments by tax authorities. A valuation allowance would be established if, based on the weight of available evidence, management believes that it is more likely than not that some portion or all of a recorded deferred tax asset would not be realized in future periods. To the extent adjustments are required in any given period, the adjustments would be included within the tax provision in the Consolidated Statements of Income. Goodwill and Intangible Assets Purchase prices of acquired businesses have been allocated to the assets and liabilities acquired based on the estimated fair values on the respective acquisition dates. Based on these values, the excess purchase prices over the fair value of the net assets acquired were allocated to goodwill and other intangible assets. Intangible assets related to customer relationships are amortized over eleven years. At December 31, 2016 and 2015, goodwill and trade name intangible assets which have indefinite lives totaled $33.5 million. The Company assesses potential impairment of its goodwill and intangible assets when there is evidence that events or circumstances have occurred that would indicate the recovery of an asset’s carrying value is unlikely. The Company also assesses potential impairment of its goodwill and intangible assets on an annual basis regardless of whether there is evidence of impairment. If indicators of impairment were to be present in intangible assets used in operations and future discounted cash flows were not expected to be sufficient to recover the assets’ carrying amount, an impairment loss would be charged to expense in the period identified. The amount of an impairment loss would be recognized as the excess of the asset’s carrying value over its fair value. Factors the Company considers important, which may cause impairment include, among others, significant changes in the manner of use of the acquired asset, negative industry or economic trends, and significant underperformance relative to historical or projected operating results. The impairment review of the Company’s goodwill and indefinite lived assets is performed by first assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. In the first step, the fair value of the reporting unit is compared to its carrying value to determine if the goodwill and intangible assets are impaired. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, then goodwill and intangible assets are not impaired and no further testing is required. If the carrying value of the net assets assigned to the reporting unit were to exceed its fair value, then the second step is performed in order to determine the implied fair value of the reporting unit’s goodwill and intangible assets and an impairment loss is recorded for an amount equal to the difference between the implied fair value and the carrying value of the goodwill and intangible assets. The Company conducted its annual impairment analysis in the fourth quarter of its fiscal year. The impairment analysis did not result in an impairment charge for the fiscal years ended 2016, 2015 or 2014. Determining the fair value of a reporting unit is judgmental and involves the use of significant estimates and assumptions. The Company based its fair value estimates on assumptions that it believes are reasonable but are uncertain and subject to changes in market conditions. Earnings Per Share Basic earnings per share (“EPS”) is computed as net income divided by the weighted average number of shares of common stock outstanding for the period. Diluted EPS is computed assuming conversion of all potentially dilutive securities including the dilutive effects of stock options, unvested restricted stock awards and other potentially dilutive securities. The table below presents the weighted-average common stock used to calculate basic and diluted earnings per share: (in thousands) Year Ended December 31, 2016 2015 2014 Weighted-average common stock for calculating basic earnings per share 23,900 25,369 25,914 Effect of potentially dilutive securities from equity-based compensation 76 88 261 Weighted-average common stock for calculating diluted earnings per share 23,976 25,457 26,175 The following securities were not included in the computation of diluted earnings per share as their effect would have been anti-dilutive: (in thousands) Year Ended December 31, 2016 2015 2014 Options to purchase common stock 661 746 9 In May 2008, the Company’s Board of Directors authorized the Company to repurchase an aggregate of 2,000,000 shares of the Company's outstanding common stock. The Company has in the past made purchases of shares of its common stock from time to time in over-the-counter market (NASDAQ) transactions, through privately negotiated, large block transactions and through a share repurchase plan, in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. In August 2015, the Company’s Board of Directors authorized the Company to repurchase an additional 2,000,000 shares of the Company's outstanding common stock. The amount and time of the specific repurchases are subject to prevailing market conditions, applicable legal requirements and other factors, including management’s discretion. All shares repurchased by the Company are canceled and returned to the status of authorized but unissued shares of common stock. There can be no assurance that any authorized shares will be repurchased and the repurchase program may be modified, extended or terminated by the Board of Directors at any time. The following table presents share repurchase activities during the years ended December 31, 2016 and 2015: Year ended December 31 (in thousands, except share and per share amounts) 2016 2015 Number of shares repurchased — 2,407,974 Aggregate purchase price — 63,953 Average price per repurchased shares — 26.56 As of December 31, 2016, 1,592,026 shares remain authorized for repurchase. Accounts Receivable and Concentration of Credit Risk The Company’s accounts receivable consist of amounts due from customers for rentals, sales, financed sales and unbilled amounts for the portion of modular building end-of-lease services earned, which were negotiated as part of the lease agreement. Unbilled receivables related to end-of-lease services, which consists of dismantle and return delivery of buildings, were $28.1 million at December 31, 2016 and $25.0 million at December 31, 2015. The Company sells primarily on 30-day terms, individually performs credit evaluation procedures on its customers on each transaction and will require security deposits from its customers when a significant credit risk is identified. The Company records an allowance for doubtful accounts in amounts equal to the estimated losses expected to be incurred in the collection of the accounts receivable. The estimated losses are based on historical collection experience in conjunction with an evaluation of the current status of the existing accounts. Customer accounts are written off against the allowance for doubtful accounts when an account is determined to be uncollectable. The allowance for doubtful accounts activity was as follows: (in thousands) 2016 2015 Beginning balance, January 1 $ 2,087 $ 2,038 Provision for doubtful accounts 1,892 2,149 Write-offs, net of recoveries (1,892 ) (2,100 ) Ending balance, December 31 $ 2,087 $ 2,087 Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of trade accounts receivable. From time to time, the Company maintains cash balances in excess of the Federal Deposit Insurance Corporation limits. Fair Value of Financial Instruments The Company believes that the carrying amounts for cash, accounts receivable, accounts payable and notes payable approximate their fair values except for fixed rate debt included in notes payable which has an estimated fair value of $140.7 million and $160.6 million compared to the recorded value of $140.0 million and $160.0 million as of December 31, 2016 and 2015, respectively. The estimates of fair value of the Company’s fixed rate debt are based on the borrowing rates currently available to the Company for bank loans with similar terms and average maturities. Foreign Currency Transactions and Translation The Company's Canadian subsidiary, TRS-RenTelco Inc., a British Columbia corporation (“TRS-Canada”), functions as a branch sales office for TRS-RenTelco in Canada. The functional currency for TRS-Canada is the U.S. dollar. Foreign currency transaction gains and losses of TRS-Canada are reported in the results of operations in the period in which they occur. The Company’s Indian subsidiary, TRS-RenTelco India Private Limited (“TRS-India”), functions as a rental and sales office for TRS-RenTelco in India. The functional currency for TRS-India is the Indian Rupee. All assets and liabilities of TRS-India are translated into U.S. dollars at period-end exchange rates and all income statement amounts are translated at the average exchange rate for each month within the year. Currently, the Company does not use derivative instruments to hedge its economic exposure with respect to assets, liabilities and firm commitments as the foreign currency transactions and risks to date have not been significant. Share-Based Compensation The Company measures and recognizes the compensation expense for all share-based awards made to employees and directors, including stock options, stock appreciation rights (“SARs”) and restricted stock units (“RSUs”), based upon estimated fair values. The fair value of stock options and SARs is estimated on the date of grant using the Black-Scholes option pricing model and for RSUs based upon the fair market value of the underlying shares of common stock as of the date of grant. The Company recognizes share-based compensation cost ratably on a straight-line basis over the requisite service period, which generally equals the vesting period. For performance-based RSUs, compensation costs are recognized when vesting conditions are met. In addition, the Company estimates the probable number of shares of common stock that will be earned and the corresponding compensation cost until the achievement of the performance goal is known. The Company records share-based compensation costs in “Selling and administrative expenses” in the Consolidated Statements of Income. The Company recognizes a benefit from share-based compensation in the Consolidated Statements of Shareholders’ Equity if an incremental tax benefit is realized. Further information regarding share-based compensation can be found in “Note 5 –Benefit Plans”. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions in determining reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during each period presented. Actual results could differ from those estimates. The most significant estimates included in the financial statements are the future cash flows and fair values used to determine the recoverability of the rental equipment and identifiable definite lived intangible assets carrying value, the various assets’ useful lives and residual values, and the allowance for doubtful accounts. Reclassification In order to conform to current year presentation, certain prior year amounts on the Consolidated Balance Sheet were reclassified from “Accounts receivable” to “Prepaid expenses and other assets” and debt issuance cost from “Prepaid expenses and other assets” to “Notes payable”. The reclassifications had no impact on net income, earnings per share or operating cash flows. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. The objective of this guidance is to establish the principles to report useful information to users of financial statements about the nature, timing and uncertainty of revenue from contracts with customers. The FASB has continued to issue ASUs to clarify and provide implementation guidance related to Revenue from Contracts with Customers, including ASU 2016-08 , Revenue from Contract with Customers: Principal versus Agent Considerations , ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing , ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients and ASU 2016-20, Revenue from Contracts with Customers: Technical Correction and Improvements. These amendments address a number of areas, including the entity’s identification of its performance obligations in a contract, collectability, non-cash consideration, presentation of sales tax and an entity’s evaluation of the nature of its promise to grant a license of intellectual property and whether or not that revenue is recognized over time or at a point in time. In February 2016, the FASB issued ASU No. 2016-02, Leases (Subtopic 842-10). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) on the commencement date: a) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718). Under the new guidance, all excess tax benefits and tax deficiencies will be recognized in the income statement as they occur. This will replace the current guidance, which requires tax benefits that exceed compensation cost (windfalls) to be recognized in equity, and tax deficiencies (shortfalls) to be recognized in equity to the extent of previously recognized windfalls. It will also eliminate the need to maintain a “windfall pool,” and will remove the requirement to delay recognizing a windfall until it reduces current taxes payable. The new guidance will also change the cash flow presentation of excess tax benefits, classifying them as operating inflows, consistent with other cash flows related to income taxes. The amendments in this guidance are effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. The adoption of this guidance is not expected to have a material impact on the Company’s financial position or results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this guidance are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company is evaluating the impact of the adoption of this guidance on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combination (Topic 805): Clarifying the Definition of a Business. The amendments in this update provide a screen to determine when an integrated set of assets and activities is not a business. The amendments in this guidance are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The adoption of this guidance is not expected to have a material impact on the Company’s financial position or results of operations. |
Financed Lease Receivables
Financed Lease Receivables | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Financed Lease Receivables | NOTE 2. FINANCED LEASE RECEIVABLES The Company has entered into sales-type leases to finance certain equipment sales to customers. The lease agreements have a bargain purchase option at the end of the lease term. The minimum lease payments receivable and the net investment included in accounts receivable for such leases are as follows: (in thousands) December 31, 2016 2015 Gross minimum lease payments receivable $ 3,252 $ 2,745 Less – unearned interest (301 ) (175 ) Net investment in sales type lease receivables $ 2,951 $ 2,570 As of December 31, 2016, the future minimum lease payments under non-cancelable sales-type leases to be received in 2017 and thereafter are as follows: (in thousands) Year Ended December 31, 2017 $ 2,162 2018 605 2019 192 2020 192 2021 101 Total minimum future lease payments $ 3,252 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 3. NOTES PAYABLE Notes payable consists of the following: (in thousands) December 31, 2016 2015 Unsecured revolving lines of credit $ 186,376 $ 221,441 4.03% Series A senior notes due in 2018 40,000 60,000 3.68% Series B senior notes due in 2021 40,000 40,000 3.84% Series C senior notes due in 2022 60,000 60,000 $ 326,376 $ 381,441 As of December 31, 2016, the future minimum payments under the unsecured revolving lines of credit, 4.03% Series A senior notes due in 2018, 3.68% Series B senior notes due in 2021 and 3.84% Series C senior notes due in 2022 are as follows: (in thousands) Year Ended December 31, 2017 $ 20,000 2018 20,000 2019 — 2020 — 2021 226,376 2022 and thereafter 60,000 $ 326,376 Unsecured Revolving Lines of Credit In March 2016, the Company renewed its credit agreement with a syndicate of banks (the “Credit Facility”). The five-year facility matures on March 31, 2021 and replaced the Company’s prior $420.0 million unsecured revolving credit facility. The Credit Facility provides for a $420.0 million unsecured revolving credit facility (which may be increased to $620.0 million with $200.0 million of additional commitments), which includes a $25.0 million sublimit for the issuance of standby letters of credit and a $10.0 million sublimit for swingline loans. In March 2016, the Company entered into a Credit Facility Letter Agreement and a Credit Line Note in favor of MUFG Union Bank, N.A., extending its line of credit facility related to its cash management services (“Sweep Service Facility”) and increasing the facility size from $10.0 million to $12.0 million. The Sweep Service Facility matures on the earlier of March 31, 2021, or the date the Company ceases to utilize MUFG Union Bank, N.A. for its cash management services. At December 31, 2016, under the Credit Facility and Sweep Service Facility, the Company had unsecured lines of credit that permit it to borrow up to $432.0 million of which $186.4 million was outstanding, and had capacity to borrow up to an additional $245.6 million. The Amended Credit Facility contains financial covenants requiring the Company to not (all defined terms used below not otherwise defined herein have the meaning assigned to such terms in the Amended Credit Facility): • Permit the Consolidated Fixed Charge Coverage Ratio of EBITDA to fixed charges as of the end of any fiscal quarter to be less than 2.50 to 1. At December 31, 2016, the actual ratio was 3.74 to 1. • Permit the Consolidated Leverage Ratio of funded debt to EBITDA at any time during any period of four consecutive fiscal quarters to be greater than 2.75 to 1. At December 31, 2016, the actual ratio was 2.00 to 1. • Permit Tangible Net Worth as of the end of any fiscal quarter of the Company to be less than the sum of (i) $246.1 million plus (ii) 25% of the Company’s Consolidated Net Income (as defined in the Amended Credit Facility) (but only if a positive number) for each fiscal quarter ended subsequent to December 31, 2011 plus (iii) 90% of the net cash proceeds from the issuance of the Company’s capital stock after December 31, 2011. At December 31, 2016, such sum was $313.3 million and the actual Tangible Net Worth of the Company was $357.9 million. Amounts borrowed under the Credit Facility bear interest at the Company’s option at either: (i) LIBOR plus a defined margin, or (ii) the Agent bank’s prime rate (“base rate”) plus a margin. The applicable margin for each type of loan is measured based upon the Consolidated Leverage Ratio at the end of the prior fiscal quarter and ranges from 1.00% to 1.75% for LIBOR loans and 0% to 0.75% for base rate loans. In addition, the Company pays an unused commitment fee for the portion of the $420.0 million credit facility that is not used. These fees are based upon the Consolidated Leverage Ratio and range from 0.15% to 0.30%. As of December 31, 2016 and 2015, the applicable margins were 1.50% and 1.75% for LIBOR based loans, respectively, 0.50% and 0.75% for base rate loans, respectively and 0.25% and 0.30% for unused fees, respectively. Amounts borrowed under the Sweep Service Facility are based upon the MUFG Union Bank, N.A. base rate plus an applicable margin and an unused commitment fee for the portion of the $12.0 million facility not used. The applicable base rate margin and unused commitment fee rates for the Sweep Service Facility are the same as for the Amended Credit Facility. The following information relates to the lines of credit for each of the following periods: (dollar amounts in thousands) Year Ended December 31, 2016 2015 Maximum amount outstanding $ 239,820 $ 295,588 Average amount outstanding $ 214,446 $ 236,860 Weighted average interest rate, during the period 2.19 % 2.35 % Prime interest rate, end of period 3.75 % 3.50 % 4.03% Senior Notes Due in 2018 On April 21, 2011, the Company entered into a Note Purchase and Private Shelf Agreement (the “Note Purchase Agreement”) with Prudential Investment Management, Inc. (“PIM”), The Prudential Insurance Company of America and Prudential Retirement Insurance and Annuity Company (collectively, the “Purchaser”), pursuant to which the Company agreed to sell an aggregate principal amount of $100.0 million of its 4.03% Series A Senior Notes (the “Series A Senior Notes”) to the Purchaser. The Series A Senior Notes are an unsecured obligation of the Company, due on April 21, 2018. Interest on these notes is due semi-annually in arrears and the principal is due in five equal annual installments, with the first payment due on April 21, 2014. At December 31, 2016 and 2015, the principal balance outstanding under the Series A Senior Notes were $40.0 million and $60.0 million, respectively. 3.68% Senior Notes Due in 2021 On March 17, 2014, the Company issued and sold to the Purchasers a $40.0 million aggregate principal amount of its 3.68% Series B Senior Notes (the “Series B Senior Notes”) pursuant to the terms of the Note Purchase Agreement, as amended. The Series B Senior Notes are an unsecured obligation of the Company, bear interest at a rate of 3.68% per annum and mature on March 17, 2021. Interest on the Series B Senior Notes is payable semi-annually beginning on September 17, 2014 and continuing thereafter on March 17 and September 17 of each year until maturity. The full net proceeds from the Series B Senior Notes were used for working capital and other general corporate purposes. At December 31, 2016, the principal balance outstanding under the Series B Senior Notes was $40.0 million. 3.84% Senior Notes Due in 2022 On November 5, 2015, the Company issued and sold to the Purchasers a $60.0 million aggregate principal amount of its 3.84% Series C Senior Notes (the “Series C Senior Notes”) pursuant to the terms of the Note Purchase Agreement, as amended. The Series C Senior Notes are an unsecured obligation of the Company, bear interest at a rate of 3.84% per annum and mature on November 5, 2022. Interest on the Series C Senior Notes is payable semi-annually beginning on May 5, 2016 and continuing thereafter on November 5 and May 5 of each year until maturity. The full net proceeds from the Series C Senior Notes were used to reduce the outstanding balance on the Company’s revolving credit line. At December 31, 2016, the principal balance outstanding under the Series C Senior Notes was $60.0 million. Among other restrictions, the Note Purchase Agreement, under which the Series A Senior Notes, Series B Senior Notes and Series C Senior Notes were sold, contains financial covenants requiring the Company to not (all defined terms used below not otherwise defined herein have the meaning assigned to such terms in the Note Purchase Agreement): • Permit the Consolidated Fixed Charge Coverage Ratio of EBITDA to fixed charges as of the end of any fiscal quarter to be less than 2.50 to 1. At December 31, 2016, the actual ratio was 3.74 to 1. • Permit the Consolidated Leverage Ratio of funded debt to EBITDA at any time during any period of four consecutive quarters to be greater than 2.75 to 1. At December 31, 2016, the actual ratio was 2.00 to 1. • Permit Tangible Net Worth, calculated as of the last day of each fiscal quarter, to be less than the sum of (i) $229.0 million, plus (ii) 25% of net income for such fiscal quarter subsequent to December 31, 2010, plus (iii) 90% of the net cash proceeds from the issuance of the Company’s capital stock after December 31, 2010. At December 31, 2016, such sum was $313.3 million and the actual Tangible Net Worth of the Company was $357.9 million. At December 31, 2016, the Company was in compliance with each of the aforementioned covenants. There are no anticipated trends that the Company is aware of that would indicate non-compliance with these covenants, though, significant deterioration in the Company’s financial performance could impact its ability to comply with these covenants. On February 9, 2016, the Company entered into an amendment to the Note Purchase Agreement (“2016 Amendment”) with the Purchaser. Pursuant to the 2016 Amendment, (i) the issuance period for the shelf notes to be issued and sold pursuant to the Note Purchase Agreement is extended until the earlier of February 9, 2019 or the termination of the issuance and sale of the shelf notes upon the 30 days’ prior notice of either PIM or the Company, and (ii) the definition of the “Available Facility Amount,” which is the aggregate amount of the shelf notes that may be authorized for purchase pursuant to the Note Purchase Agreement was amended to equal a formula based on: $250 million, minus the aggregate principal amount of the shelf notes then outstanding and purchased pursuant to the Note Purchase Agreement, minus the shelf notes accepted by the Company for purchase, but not yet purchased, by the Purchaser pursuant to the Note Purchase Agreement; provided, however, the aggregate amount of the shelf notes purchased by any corporation or other entity controlling, controlled by, or under common control with, PIM shall not exceed $200 million. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 4. INCOME TAXES Income before provision for income taxes consisted of the following: (in thousands) Year Ended December 31, 2016 2015 2014 U.S. $ 67,199 $ 66,889 $ 76,848 Foreign (268 ) (512 ) (287 ) $ 66,931 $ 66,377 $ 76,561 The provision for income taxes consisted of the following: (in thousands) Year Ended December 31, 2016 2015 2014 Current: U.S. Federal $ 17,203 $ 7,976 $ 7,494 State 2,049 1,851 2,139 Foreign 1,683 1,645 1,572 20,935 11,472 11,205 Deferred: U.S. Federal 4,005 13,201 17,986 State 3,039 1,538 1,927 Foreign 701 (304 ) (266 ) 7,745 14,435 19,647 Total $ 28,680 $ 25,907 $ 30,852 The reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2016 2015 2014 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 4.2 4.2 4.1 State deferred tax rate change, net of federal benefit 2.0 (0.4 ) 0.1 Valuation allowance 1.1 — — Other 0.6 0.2 1.1 42.9 % 39.0 % 40.3 % The following table shows the deferred income taxes related to the temporary differences between the tax bases of assets and liabilities and the respective amounts included in “Deferred income taxes, net” on the Company’s Consolidated Balance Sheets: (in thousands) December 31, 2016 2015 Deferred tax liabilities: Accelerated depreciation $ 293,141 $ 286,618 Prepaid costs currently deductible 6,572 6,997 Other 5,747 5,034 Total deferred tax liabilities 305,460 298,649 Deferred tax assets: Accrued costs not yet deductible 9,785 8,638 Allowance for doubtful accounts 809 804 Net operating loss carry forwards — 577 Deferred revenues 965 1,945 Share-based compensation 1,882 3,334 Total deferred tax assets, net of valuation allowance of $0.7 million in 2016 13,441 15,298 Deferred income taxes, net $ 292,019 $ 283,351 In December 2016, the Company decided to exit the Bangalore, India branch operations of its TRS-RenTelco electronics division. The wind down of operations in India will begin in 2017. As a result, a valuation allowance of $0.7 million was recorded against the deferred tax assets that resulted primarily from accumulated net operating loss carry forwards in India as of December 31, 2016 that management estimated the benefit of which will not be realized. There were no valuation allowances recorded as of December 31, 2015. In 2016 and 2015 exercises of non-qualified stock options by employees resulted in a tax shortfall of $1.1 million and $0.3 million, respectively. In 2014 exercises of non-qualified stock options by employees resulted in an excess tax benefit of $1.8 million. The net tax benefit was recorded as common stock in conjunction with the proceeds received from the exercise of the stock options. A deferred U.S. tax liability has not been provided on the undistributed earnings of certain foreign subsidiaries because it is the Company’s intent to permanently reinvest such earnings. Undistributed earnings of foreign subsidiaries, which have been or are intended to be permanently reinvested, aggregated approximately $1.9 million as of December 31, 2016 and 2015. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company evaluated all of its tax positions for which the statute of limitations remained open and determined there were no material unrecognized tax benefits as of December 31, 2016 and 2015. In addition, there have been no material changes in unrecognized benefits during 2016, 2015 and 2014. The Company is subject to income taxes in the U.S. federal jurisdiction, and various states and foreign jurisdictions. Tax regulations within each jurisdiction are subject to interpretation of the related tax laws and regulations and require the application of significant judgment. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for the years before 2012. Our income tax returns are subject to examination by federal, state and foreign tax authorities. There may be differing interpretations of tax laws and regulations, and as a result, disputes may arise with these tax authorities involving the timing and amount of deductions and allocation of income. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes for all periods presented. Such interest and penalties were not significant for the years ended December 31, 2016, 2015 and 2014. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Benefit Plans | NOTE 5. BENEFIT PLANS Stock Plans The Company adopted the 2016 Stock Incentive Plan (the “2016 Plan”), effective June 8, 2016, under which 2,000,000 shares of the common stock of the Company, plus the number of shares that remain available for grants of awards under the Company's 2007 Stock Option Plan (the “2007 Plan”) and become available as a result of forfeiture, termination, or expiration of awards previously granted under the 2007 Plan, were reserved for the grant of equity awards to its employees, directors and consultants. The equity awards have a maximum term of 7 years at an exercise price of not less than 100% of the fair market value of the Company's common stock on the date the equity award is granted. The 2016 Plan replaced the 2007 Plan. The 2016 Plan provides for the grant of awards in the form of stock options, stock appreciation rights, RSUs, the vesting of which may be performance-based or service-based, and other rights and benefits. Each RSU issued reduces the number of shares of the Company’s common stock available for grant under the 2007 Plan by two shares. There were no modifications to the 2016 Plan and no awards classified as liabilities in the year ended December 31, 2016. For the years ended December 31, 2016, 2015 and 2014, the share-based compensation expense was $3.1 million, $3.4 million and $3.9 million, respectively, before provision for income taxes. The Company recorded a tax benefit of approximately $1.2 million, $1.3 million and $1.5 million, respectively, related to the aforementioned share-based compensation expenses. There was no capitalized share-based compensation expense in the years ended December 31, 2016, 2015 and 2014. For the years ended December 31, 2016, 2015 and 2014, the share-based compensation expenses, net of taxes, reduced net income by $1.9 million, $2.1 million and $2.3 million, respectively, or $0.08, $0.08 and $0.09 per diluted share for the three years ended December 31, 2016, 2015 and 2014, respectively. Stock Options As of December 31, 2016, a cumulative total of 8,159,000 shares subject to options have been granted with exercise prices ranging from $3.47 to $39.19. Of these, options have been exercised for the purchase of 5,222,603 shares, while options for 1,351,962 shares have been terminated, and options for 1,584,435 shares with exercise prices ranging from $23.84 to $39.19 remained outstanding under the stock plans. These options vest over five years and expire seven years after grant. To date, no options have been issued to any of the Company’s non-employee advisors. As of December 31, 2016, 2,251,074 shares remained available for issuance of awards under the stock plans. A summary of the Company’s option activity and related information for the three years ended December 31, 2016 is as follows: Number of options Weighted- average price Weighted- average remaining contractual term (in years) Aggregate intrinsic value (in millions) Balance at December 31, 2013 1,772,062 $ 24.68 Options granted 203,600 32.79 Options exercised (612,682) 21.55 Options cancelled/forfeited/expired (19,220 ) 30.35 Balance at December 31, 2014 1,343,760 27.25 Options granted 456,200 31.69 Options exercised (270,650 ) 19.81 Options cancelled/forfeited/expired (118,660 ) 29.58 Balance at December 31, 2015 1,410,650 29.91 Options granted 881,800 25.26 Options exercised (368,085 ) 27.34 Options cancelled/forfeited/expired (339,930 ) 28.62 Balance at December 31, 2016 1,584,435 $ 28.14 6.20 $ 17.5 Exercisable at December 31, 2016 354,165 $ 30.85 4.70 $ 3.0 Expected to vest after December 31, 2016 1,107,243 $ 27.36 6.63 $ 13.1 The intrinsic value of stock options at any point in time is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock. The aggregate intrinsic value of options exercised and sold under the Company’s stock option plans was $4.2 million, $5.7 million and $8.4 million for the years ended December 31, 2016, 2015 and 2014, respectively, determined as of the date of option exercise. As of December 31, 2016, there was approximately $5.7 million of total unrecognized compensation cost related to unvested share-based compensation option arrangements granted under the Company’s stock plans, which is expected to be recognized over a weighted-average period of 3.1 years. The following table indicates the options outstanding and options exercisable by exercise price with the weighted-average remaining contractual life for the options outstanding and the weighted-average exercise price at December 31, 2016: Options Outstanding Options Exercisable Exercise price Number outstanding at December Weighted- average remaining contractual life (Years) Weighted- average grant date value Number exercisable at December 31, 2016 Weighted- average grant date value $20 – 25 751,500 6.98 $ 24.60 3,780 $ 23.84 $25 – 30 171,920 4.08 $ 28.59 118,500 $ 28.93 $30 – 35 651,355 5.85 $ 32.06 231,005 $ 32.12 $35 – 40 9,600 6.41 $ 38.43 880 $ 36.62 $20 – 40 1,584,375 6.20 $ 28.14 354,165 $ 30.78 The Company utilizes the Black-Scholes option-pricing model to estimate the fair value of share-based compensation at the date of grant, which requires the use of accounting judgment and financial estimates, including estimates of the expected term option holders will retain their vested stock options before exercising them, the estimated volatility of the Company’s stock price over the expected term and the expected number of options that will be forfeited prior to the completion of their vesting requirements. Application of alternative assumptions could produce significantly different estimates of the fair value of share-based compensation amounts recognized in the Consolidated Statements of Income. The fair value of each option granted was estimated on the date of grant using the Black-Scholes option-pricing model using the following weighted-average assumptions: Year Ended December 31, 2016 2015 2014 Expected term (in years) 5.0 5.0 5.0 Expected volatility 28.7 % 31.1 % 40.5 % Expected dividend yields 4.1 % 3.2 % 3.0 % Risk-free interest rates 1.2 % 1.6 % 1.5 % The Company monitors option exercise behavior to determine the appropriate homogenous groups for estimation purposes. Currently, the Company’s option activity is separated into two categories: directors and employees. The expected term of the options represents the estimated period of time until exercise and is based on historical experience, giving consideration to the option terms, vesting schedules and expectations of future behavior. Expected stock volatility is based on historical stock price volatility of the Company and the risk-free interest rates are based on U.S. Treasury yields in effect on the date of the option grant for the estimated period the options will be outstanding. The expected dividend yield is based upon the current dividend annualized as a percentage of the grant exercise price. The weighted average grant date fair value per share was $4.14, $6.60 and $9.17 during the years ended December 31, 2016, 2015 and 2014, respectively. Restricted Stock Units The following table summarizes the activity of the Company’s RSUs, which includes service-based and performance-based awards, for the three years ended December 31, 2016: Weighted- Aggregate average intrinsic Number grant Date value of shares fair value (in millions) Balance at December 31, 2013 320,980 $ 28.47 RSUs granted 118,864 30.85 RSUs vested (120,721 ) 27.30 RSUs cancelled/forfeited/expired (7,540 ) 30.34 Balance at December 31, 2014 311,583 29.78 RSUs granted 79,300 31.86 RSUs vested (89,915 ) 27.97 RSUs cancelled/forfeited/expired (80,320 ) 31.35 Balance at December 31, 2015 220,648 30.70 RSUs granted 31,900 25.75 RSUs vested (59,008 ) 29.69 RSUs cancelled/forfeited/expired (68,300 ) 29.33 Balance at December 31, 2016 125,240 $ 30.66 $ 4.9 Performance-based RSUs vest over five years, with 60% of the shares immediately vesting after three years when the performance criteria has been determined to have been met and 20% of the remaining shares vesting annually at the anniversary of the performance determination date, subject to continuous employment of the participant. There were 30,380 performance-based RSUs expected to vest as of December 31, 2016. Service-based RSUs have been issued to the Company’s directors and generally vest over twelve to fourteen months. There were 23,400 service-based RSUs expected to vest as of December 31, 2016. No forfeitures are currently expected. Share-based compensation expense for RSUs for the year ended December 31, 2016, 2015 and 2014 was $1.0 million, $1.7 million and $2.3, respectively. As of December 31, 2016, the total unrecognized compensation expense related to unvested RSUs was $0.6 million and is expected to be recognized over a weighted-average period of 2.3 years. Employee Stock Ownership and 401(k) Plans The McGrath RentCorp Employee Stock Ownership and 401(k) Plan (the “KSOP”) provides that each participant may annually contribute an elected percentage of his or her salary, not to exceed the statutory limit. The Company, at its discretion, may make matching contributions. Contributions are expensed in the year approved by the Board of Directors. Dividends on the Company’s stock held by the KSOP are treated as ordinary dividends and, in accordance with existing tax laws, are deducted by the Company in the year paid. For the year ended December 31, 2016 dividends deducted by the Company were $0.4 million, which resulted in a tax benefit of approximately $0.1 million in 2016. At December 31, 2016, the KSOP held 335,334 shares, or less than 2% of the Company’s total common shares outstanding. These shares are included in basic and diluted earnings per share calculations. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | NOTE 6. SHAREHOLDERS’ EQUITY In May 2008, the Company’s Board of Directors authorized the Company to repurchase an aggregate of 2,000,000 shares of the Company's outstanding common stock. The Company has in the past made purchases of shares of its common stock from time to time in over-the-counter market (NASDAQ) transactions, through privately negotiated, large block transactions and through a share repurchase plan, in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. In August 2015, the Company’s Board of Directors authorized the Company to repurchase an additional 2,000,000 shares of the Company's outstanding common stock. The amount and time of the specific repurchases are subject to prevailing market conditions, applicable legal requirements and other factors, including management’s discretion. All shares repurchased by the Company are canceled and returned to the status of authorized but unissued shares of common stock. There can be no assurance that any authorized shares will be repurchased and the repurchase program may be modified, extended or terminated by the board of directors at any time. During the twelve months ended December 31, 2015, the Company repurchased 2,407,974 shares of common stock for an aggregate repurchase price of $64.0 million, or an average price of $26.56 per share. There were no repurchases of common stock during the twelve months ended December 31, 2016. As of December 31, 2016, 1,592,026 shares remain authorized for repurchase under this authorization. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 7. COMMITMENTS AND CONTINGENCIES The Company leases certain facilities under various operating leases. Most of the lease agreements provide the Company with the option of renewing its lease at the end of the lease term, at the fair rental value. In most cases, management expects that in the normal course of business, facility leases will be renewed or replaced by other leases. Minimum payments under these leases, exclusive of property taxes and insurance, are as follows: (in thousands) Year Ended December 31, 2017 $ 1,550 2018 1,148 2019 276 2020 14 2021 14 Thereafter — $ 3,002 Rent expense was $3.5 million, $3.5 million and $3.4 million in 2016, 2015 and 2014, respectively. The Company is involved in various lawsuits and routine claims arising out of the normal course of its business. The Company maintains insurance coverage for its operations and employees with appropriate aggregate, per occurrence and deductible limits as the Company reasonably determines necessary or prudent with current operations and historical experience. The major policies include coverage for property, general liability, auto, directors and officers, health, and workers’ compensation insurances. The Company records a provision for a liability when it believes that it is both probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. The Company reviews these provisions at least quarterly and adjusts these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information. Litigation is inherently unpredictable and is subject to significant uncertainties, some of which are beyond the Company’s control. In the opinion of management, there was not at least a reasonable possibility that the ultimate amount of liability not covered by insurance, if any, under any pending litigation and claims, individually or in the aggregate, will have a material adverse effect on the financial position or operating results of the Company. The Company’s health and workers’ compensation plans are self-funded high deductible plans with annual stop-loss insurance of $150,000 and $250,000 per claim, respectively. Insurance providers are responsible for making claim payments that exceed these amounts on an individual claim basis. In addition, the Company has stop loss insurance that pays for claim payments made during a twelve month coverage period that exceeds certain specified thresholds in the aggregate. The Company records an expense when health and workers compensation claim payments are made and accrues for the portion of claims incurred, but not yet paid at period end. The Company makes these accruals based upon a combination of historical claim payments, loss development experience and actuarial estimates. A high degree of judgment is required in developing the underlying assumptions and the resulting amounts to be accrued. In addition, our assumptions will change as the Company’s loss experience develops. All of these factors have the potential for impacting the amounts previously accrued and the Company may be required to increase or decrease the amounts previously accrued. At December 31, 2016 and 2015, accruals for the Company’s health and workers’ compensation high deductible plans were $2.4 million and $1.9 million, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 8. INTANGIBLE ASSETS Intangible assets consist of the following: (dollar amounts in thousands) Estimated useful life December 31, (In years) 2016 2015 Trade name Indefinite $ 5,700 $ 5,700 Customer relationships 11 9,611 9,611 15,311 15,311 Less accumulated amortization (6,716 ) (5,846 ) $ 8,595 $ 9,465 Intangible assets with finite useful lives are amortized over their respective useful lives. Amortization expense for the years ended December 31, 2016, 2015 and 2014 were $0.9 million, $0.9 million and $0.8 million, respectively. Based on the carrying values at December 31, 2016 and assuming no subsequent impairment of the underlying assets, the annual amortization is expected to be $0.9 million in 2017 through 2019 and $0.2 million in 2020. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 9. RELATED PARTY TRANSACTIONS There were no related party transactions in the years ended December 31, 2016 and 2015, or amounts owed to related parties at such dates. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 10. SEGMENT REPORTING FASB guidelines establish annual and interim reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. In accordance with these guidelines the Company’s four reportable segments are Mobile Modular, TRS-RenTelco, Adler Tanks and Enviroplex. Management focuses on several key measures to evaluate and assess each segment’s performance including rental revenue growth, gross margin, and income before provision for income taxes. Excluding interest expense, allocations of revenue and expense not directly associated with one of these segments are generally allocated to Mobile Modular, TRS-RenTelco and Adler Tanks, based on their pro-rata share of direct revenues. Interest expense is allocated amongst Mobile Modular, TRS-RenTelco and Adler Tanks based on their pro-rata share of average rental equipment at cost, goodwill, intangible assets, accounts receivable, deferred income and customer security deposits. The Company does not report total assets by business segment. Summarized financial information for the years ended December 31, 2016, 2015 and 2014, for the Company’s reportable segments is shown in the following tables: Segment Data (dollar amounts in thousands) Mobile Modular TRS- RenTelco Adler Tanks Enviroplex 1 Consolidated Year Ended December 31, 2016 Rental revenues $ 130,496 $ 82,307 $ 58,585 $ — $ 271,388 Rental related services revenues 49,206 2,846 23,807 — 75,859 Sales and other revenues 29,810 23,464 1,438 22,121 76,833 Total revenues 209,512 108,617 83,830 22,121 424,080 Depreciation of rental equipment 21,001 35,256 15,940 — 72,197 Gross profit 93,816 45,797 37,409 7,145 184,167 Selling and administrative expenses 51,432 21,896 27,610 3,970 104,908 Income from operations 42,384 23,901 9,799 3,175 79,259 Interest expense (income) allocation (6,804 ) (2,465 ) (3,200 ) 262 (12,207 ) Income before provision for income taxes 35,580 21,315 6,599 3,437 66,931 Rental equipment acquisitions 43,099 30,505 1,030 — 74,634 Accounts receivable, net (period end) 55,916 19,506 16,150 5,305 96,877 Rental equipment, at cost (period end) 769,190 246,325 308,542 — 1,324,057 Rental equipment, net book value (period end) 544,421 90,172 221,778 — 856,371 Utilization (period end) 2 77.3 % 61.0 % 50.7 % Average utilization 2 76.6 % 60.6 % 50.1 % Segment Data (Continued) (dollar amounts in thousands) Mobile Modular TRS- RenTelco Adler Tanks Enviroplex 1 Consolidated Year Ended December 31, 2015 Rental revenues $ 115,986 $ 89,208 $ 68,502 $ — $ 273,696 Rental related services revenues 45,616 3,055 24,643 — 73,314 Sales and other revenues 22,682 22,754 1,486 10,612 57,534 Total revenues 184,284 115,017 94,631 10,612 404,544 Depreciation of rental equipment 19,246 39,974 15,993 — 75,213 Gross profit 78,771 47,836 47,397 2,903 176,907 Selling and administrative expenses 46,496 22,930 27,494 3,030 99,950 Income (loss) from operations 32,275 24,906 19,903 (127 ) 76,957 Interest expense (income) allocation (5,363 ) (2,194 ) (2,729 ) 194 (10,092 ) Income before provision for income taxes 26,912 22,224 17,174 67 66,377 Rental equipment acquisitions 79,622 44,316 9,440 — 133,378 Accounts receivable, net (period end) 53,550 21,784 17,955 1,728 95,017 Rental equipment, at cost (period end) 736,875 262,945 310,263 — 1,310,083 Rental equipment, net book value (period end) 529,483 102,191 237,927 — 869,601 Utilization (period end) 2 76.9 % 58.7 % 49.7 % Average utilization 2 75.8 % 60.5 % 58.3 % 2014 Rental revenues $ 96,457 $ 99,020 $ 74,098 $ — $ 269,575 Rental related services revenues 35,263 3,331 25,538 — 64,132 Sales and other revenues 29,855 25,951 1,152 17,457 74,415 Total revenues 161,575 128,302 100,788 17,457 408,122 Depreciation of rental equipment 16,536 40,935 15,207 — 72,678 Gross profit 63,455 60,249 53,452 5,063 182,219 Selling and administrative expenses 42,069 23,736 27,424 3,630 96,859 Income from operations 21,386 36,513 26,028 1,433 85,360 Interest expense (income) allocation 4,768 2,075 2,618 (181 ) 9,280 Income before provision for income taxes 16,959 34,383 23,605 1,614 76,561 Rental equipment acquisitions 82,792 45,158 20,652 — 148,602 Accounts receivable, net (period end) 46,659 28,849 21,031 4,617 101,156 Rental equipment, at cost (period end) 664,340 261,995 303,303 — 1,229,638 Rental equipment, net book value (period end) 473,960 105,729 246,061 — 825,750 Utilization (period end) 2 75.0 % 59.8 % 63.9 % Average utilization 2 72.3 % 60.4 % 62.9 % 1 Gross Enviroplex sales revenues were $22,206, $11,530 and $19,017 in 2016, 2015 and 2014, respectively, which includes inter-segment sales to Mobile Modular of $85, $918 and $1,560, which have been eliminated in consolidation. 2 Utilization is calculated each month by dividing the cost of rental equipment on rent by the total cost of rental equipment excluding new equipment inventory and accessory equipment. The average utilization for the period is calculated using the average costs of rental equipment. No single customer accounted for more than 10% of total revenues during 2016, 2015 and 2014. Revenue from foreign country customers accounted for 5% of the Company’s revenues for the same periods. |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | NOTE 11. QUARTERLY FINANCIAL INFORMATION (unaudited) Quarterly financial information for each of the two years ended December 31, 2016 is summarized below: (in thousands, except per share amounts) 2016 First Second Third Fourth Year Operations Data Rental revenues $ 66,532 $ 66,747 $ 67,757 $ 70,352 $ 271,388 Total revenues 93,699 103,105 121,993 105,283 424,080 Gross profit 40,655 43,756 50,433 49,323 184,167 Income from operations 14,258 18,073 24,232 22,696 79,259 Income before provision for income taxes 10,853 15,006 21,277 19,795 66,931 Net income 6,566 9,079 12,872 9,734 38,251 Earnings per share: Basic $ 0.28 $ 0.38 $ 0.54 $ 0.41 $ 1.60 Diluted $ 0.27 $ 0.38 $ 0.54 $ 0.40 $ 1.60 Dividends declared per share $ 0.255 $ 0.255 $ 0.255 $ 0.255 $ 1.02 Shares used in per share calculations: Basic 23,862 23,900 23,911 23,927 23,900 Diluted 23,911 23,949 24,041 24,123 23,976 Balance Sheet Data Rental equipment, net $ 867,215 $ 868,422 $ 862,528 $ 856,371 $ 856,371 Total assets 1,132,355 1,148,018 1,144,923 1,128,276 1,128,276 Notes payable 365,772 363,121 345,286 326,266 326,266 Shareholders’ equity 380,512 383,313 390,600 394,287 394,287 2015 First Second Third Fourth Year Operations Data Rental revenues $ 65,502 $ 67,305 $ 70,195 $ 70,694 $ 273,696 Total revenues 90,188 96,026 113,048 105,282 404,544 Gross profit 39,087 40,918 50,146 46,756 176,907 Income from operations 13,875 16,465 25,150 21,467 76,957 Income before provision for income taxes 11,316 14,033 22,505 18,523 66,377 Net income 6,846 8,490 13,616 11,518 40,470 Earnings per share: Basic $ 0.26 $ 0.33 $ 0.54 $ 0.48 $ 1.60 Diluted $ 0.26 $ 0.32 $ 0.54 $ 0.48 $ 1.59 Dividends declared per share $ 0.250 $ 0.250 $ 0.250 $ 0.250 $ 1.00 Shares used in per share calculations: Basic 26,091 26,142 25,334 23,932 25,369 Diluted 26,276 26,273 25,408 24,015 25,457 Balance Sheet Data Rental equipment, net $ 839,078 $ 856,489 $ 864,277 $ 869,601 $ 869,601 Total assets 1,112,056 1,132,750 1,149,095 1,152,549 1,152,549 Notes payable 320,923 337,177 382,113 381,281 381,281 Shareholders’ equity 425,848 426,823 389,464 379,687 379,687 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization | Organization McGrath RentCorp and its wholly-owned subsidiaries (the “Company”) is a California corporation organized in 1979. The Company is a diversified business to business rental company with four rental divisions; relocatable modular buildings, portable storage containers, electronic test equipment and liquid and solid containment tanks and boxes. Although the Company’s primary emphasis is on equipment rentals, sales of equipment occur in the normal course of business. The Company is comprised of four reportable business segments: modular building and portable storage segment (“Mobile Modular”), electronic test equipment segment (“TRS-RenTelco”), containment solutions for the storage of hazardous and non-hazardous liquids and solids segment (“Adler Tanks”) and classroom manufacturing division selling modular classrooms in California (“Enviroplex”). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of McGrath RentCorp and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Revenue Recognition | Revenue Recognition Rental revenue from operating leases is recognized on a straight-line basis over the term of the lease. Rental billings for periods extending beyond period end are recorded as deferred income and are recognized when earned. Rental related services revenue is primarily associated with relocatable modular building and liquid and solid containment tanks and boxes leases. For modular building leases, rental related services revenue consists of billings to customers for modifications, delivery, installation, additional site-related work, and dismantle and return delivery. For modular building leases, revenue related to delivery, installation, dismantle and return delivery are an integral part of the negotiated lease agreement with customers and are recognized on a straight-line basis over the term of the lease. For liquid and solid containment solutions, rental related services revenue consists of billings for delivery, removal and cleaning of the tanks and boxes. These revenues are recognized in the period performed. Sales revenue is recognized upon delivery and installation of the equipment to customers. Certain leases are accounted for as sales-type leases. For these leases, sales revenue and the related accounts receivable are recognized upon delivery and installation of the equipment and the unearned interest is recognized over the lease term on a basis which results in a constant rate of return on the unrecovered lease investment. Other revenue is recognized when earned and primarily includes interest income on sales-type leases, rental income on facility rentals and certain logistics services. Sales taxes charged to customers are reported on a net basis and are excluded from revenues and expenses. |
Depreciation of Rental Equipment | Depreciation of Rental Equipment Rental equipment is depreciated on a straight-line basis for financial reporting purposes and on an accelerated basis for income tax purposes. The costs of major refurbishment of relocatable modular buildings and portable storage containers are capitalized to the extent the refurbishment significantly adds value to, or extends the life of the equipment. Maintenance and repairs are expensed as incurred. The estimated useful lives and residual values of the Company’s rental equipment used for financial reporting purposes are as follows: Relocatable modular buildings 18 years, 50% residual value Relocatable modular accessories 3 to 18 years, no residual value Portable storage containers 25 years, 62.5% residual value Electronic test equipment and accessories 1 to 8 years, no residual value Liquid and solid containment tanks and boxes and accessories 10 to 20 years, no residual value |
Costs of Rental Related Services | Costs of Rental Related Services Costs of rental related services are primarily associated with relocatable modular building leases and liquid and solid containment tank and boxes. Modular building leases consist of costs for services to be provided under the negotiated lease agreement for delivery, installation, modifications, skirting, additional site-related work, and dismantle and return delivery. Costs related to these services are recognized on a straight-line basis over the term of the lease. Costs of rental related services associated with liquid and solid containment solutions consists of costs of delivery, removal and cleaning of the tanks and boxes. These costs are recognized in the period the service is performed. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates the carrying value of rental equipment and identifiable definite lived intangible assets for impairment whenever events or circumstances have occurred that would indicate the carrying amount may not be fully recoverable. A key element in determining the recoverability of long-lived assets is the Company’s outlook as to the future market conditions for its rental equipment. If the carrying amount is not fully recoverable, an impairment loss is recognized to reduce the carrying amount to fair value. The Company determines fair value based upon the condition of the rental equipment and the projected net cash flows from its rental and sale considering current market conditions. Goodwill and identifiable indefinite lived assets are evaluated for potential impairment annually or when circumstances indicate potential impairment may have occurred. Impairment losses, if any, are determined based upon the excess of carrying value over the estimated fair value of the asset. There were no impairments of long-lived assets during the years ended December 31, 2016, 2015 and 2014. |
Other Direct Costs of Rental Operations | Other Direct Costs of Rental Operations Other direct costs of rental operations include direct labor, supplies, repairs, insurance, property taxes, license fees and certain modular lease costs charged to customers in the negotiated rental rate, which are recognized on a straight-line basis over the term of the lease. |
Cost of Sales | Cost of Sales Cost of sales in the Consolidated Statements of Income includes the carrying value of the equipment sold and all direct costs associated with the sale. |
Warranty Reserves | Warranty Reserves Sales of new relocatable modular buildings, portable storage containers, electronic test equipment and related accessories and liquid and solid containment tanks and boxes not manufactured by the Company are typically covered by warranties provided by the manufacturer of the products sold. The Company typically provides limited 90-day warranties for certain sales of used rental equipment and one-year warranties on equipment manufactured by Enviroplex. Although the Company’s policy is to provide reserves for warranties when required for specific circumstances, the Company has not found it necessary to establish such reserves to date as warranty costs have not been significant. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is recognized on a straight-line basis for financial reporting purposes, and on an accelerated basis for income tax purposes. Depreciation expenses for property, plant and equipment is included in “Selling and administrative expenses” and “Rental related services” in the Consolidated Statements of Income. Maintenance and repairs are expensed as incurred. Property, plant and equipment consist of the following: (dollar amounts in thousands) Estimated useful life December 31, in years 2016 2015 Land Indefinite $ 45,928 $ 40,378 Land improvements 20 – 50 42,677 42,004 Buildings 30 26,105 25,520 Furniture, office and computer equipment 3 – 10 35,215 34,053 Machinery and service equipment 5 – 25 30,416 28,642 180,341 170,597 Less accumulated depreciation (68,854 ) (61,410 ) 111,487 109,187 Construction in progress 703 566 $ 112,190 $ 109,753 Property, plant and equipment depreciation expense was $8.1 million, $8.2 million and $7.6 million for the years ended December 31, 2016, 2015 and 2014, respectively. Construction in progress at December 31, 2016 and 2015 consisted primarily of costs related to acquisition of land and land improvements and information technology upgrades. |
Capitalized Software Costs | Capitalized Software Costs The Company capitalizes certain development costs incurred in connection with its internal use software. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, direct internal and external costs are capitalized until the software is substantially complete and ready for its intended use. These costs generally include external direct costs of materials and services consumed in the project and internal costs, such as payroll and benefits of those employees directly associated with the development of the software. Maintenance and training costs are expensed as incurred. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized software costs are included in property, plant and equipment. The Company capitalized $0.2 million and $0.6 million in internal use software during the years ended December 31, 2016 and 2015, respectively. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Total advertising expenses were $2.9 million, $2.8 million and $2.4 million for the years ended December 31, 2016, 2015 and 2014. |
Income Taxes | Income Taxes Income taxes are accounted for using an asset and liability approach. Deferred tax assets and liabilities are recorded for the effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and deferred tax liabilities are adjusted to the extent necessary to reflect tax rates expected to be in effect when temporary differences reverse. Adjustments may be required to deferred tax assets and deferred tax liabilities due to changes in tax laws and audit adjustments by tax authorities. A valuation allowance would be established if, based on the weight of available evidence, management believes that it is more likely than not that some portion or all of a recorded deferred tax asset would not be realized in future periods. To the extent adjustments are required in any given period, the adjustments would be included within the tax provision in the Consolidated Statements of Income. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Purchase prices of acquired businesses have been allocated to the assets and liabilities acquired based on the estimated fair values on the respective acquisition dates. Based on these values, the excess purchase prices over the fair value of the net assets acquired were allocated to goodwill and other intangible assets. Intangible assets related to customer relationships are amortized over eleven years. At December 31, 2016 and 2015, goodwill and trade name intangible assets which have indefinite lives totaled $33.5 million. The Company assesses potential impairment of its goodwill and intangible assets when there is evidence that events or circumstances have occurred that would indicate the recovery of an asset’s carrying value is unlikely. The Company also assesses potential impairment of its goodwill and intangible assets on an annual basis regardless of whether there is evidence of impairment. If indicators of impairment were to be present in intangible assets used in operations and future discounted cash flows were not expected to be sufficient to recover the assets’ carrying amount, an impairment loss would be charged to expense in the period identified. The amount of an impairment loss would be recognized as the excess of the asset’s carrying value over its fair value. Factors the Company considers important, which may cause impairment include, among others, significant changes in the manner of use of the acquired asset, negative industry or economic trends, and significant underperformance relative to historical or projected operating results. The impairment review of the Company’s goodwill and indefinite lived assets is performed by first assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. In the first step, the fair value of the reporting unit is compared to its carrying value to determine if the goodwill and intangible assets are impaired. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, then goodwill and intangible assets are not impaired and no further testing is required. If the carrying value of the net assets assigned to the reporting unit were to exceed its fair value, then the second step is performed in order to determine the implied fair value of the reporting unit’s goodwill and intangible assets and an impairment loss is recorded for an amount equal to the difference between the implied fair value and the carrying value of the goodwill and intangible assets. The Company conducted its annual impairment analysis in the fourth quarter of its fiscal year. The impairment analysis did not result in an impairment charge for the fiscal years ended 2016, 2015 or 2014. Determining the fair value of a reporting unit is judgmental and involves the use of significant estimates and assumptions. The Company based its fair value estimates on assumptions that it believes are reasonable but are uncertain and subject to changes in market conditions. |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) is computed as net income divided by the weighted average number of shares of common stock outstanding for the period. Diluted EPS is computed assuming conversion of all potentially dilutive securities including the dilutive effects of stock options, unvested restricted stock awards and other potentially dilutive securities. The table below presents the weighted-average common stock used to calculate basic and diluted earnings per share: (in thousands) Year Ended December 31, 2016 2015 2014 Weighted-average common stock for calculating basic earnings per share 23,900 25,369 25,914 Effect of potentially dilutive securities from equity-based compensation 76 88 261 Weighted-average common stock for calculating diluted earnings per share 23,976 25,457 26,175 The following securities were not included in the computation of diluted earnings per share as their effect would have been anti-dilutive: (in thousands) Year Ended December 31, 2016 2015 2014 Options to purchase common stock 661 746 9 In May 2008, the Company’s Board of Directors authorized the Company to repurchase an aggregate of 2,000,000 shares of the Company's outstanding common stock. The Company has in the past made purchases of shares of its common stock from time to time in over-the-counter market (NASDAQ) transactions, through privately negotiated, large block transactions and through a share repurchase plan, in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. In August 2015, the Company’s Board of Directors authorized the Company to repurchase an additional 2,000,000 shares of the Company's outstanding common stock. The amount and time of the specific repurchases are subject to prevailing market conditions, applicable legal requirements and other factors, including management’s discretion. All shares repurchased by the Company are canceled and returned to the status of authorized but unissued shares of common stock. There can be no assurance that any authorized shares will be repurchased and the repurchase program may be modified, extended or terminated by the Board of Directors at any time. The following table presents share repurchase activities during the years ended December 31, 2016 and 2015: Year ended December 31 (in thousands, except share and per share amounts) 2016 2015 Number of shares repurchased — 2,407,974 Aggregate purchase price — 63,953 Average price per repurchased shares — 26.56 As of December 31, 2016, 1,592,026 shares remain authorized for repurchase. |
Accounts Receivable and Concentration of Credit Risk | Accounts Receivable and Concentration of Credit Risk The Company’s accounts receivable consist of amounts due from customers for rentals, sales, financed sales and unbilled amounts for the portion of modular building end-of-lease services earned, which were negotiated as part of the lease agreement. Unbilled receivables related to end-of-lease services, which consists of dismantle and return delivery of buildings, were $28.1 million at December 31, 2016 and $25.0 million at December 31, 2015. The Company sells primarily on 30-day terms, individually performs credit evaluation procedures on its customers on each transaction and will require security deposits from its customers when a significant credit risk is identified. The Company records an allowance for doubtful accounts in amounts equal to the estimated losses expected to be incurred in the collection of the accounts receivable. The estimated losses are based on historical collection experience in conjunction with an evaluation of the current status of the existing accounts. Customer accounts are written off against the allowance for doubtful accounts when an account is determined to be uncollectable. The allowance for doubtful accounts activity was as follows: (in thousands) 2016 2015 Beginning balance, January 1 $ 2,087 $ 2,038 Provision for doubtful accounts 1,892 2,149 Write-offs, net of recoveries (1,892 ) (2,100 ) Ending balance, December 31 $ 2,087 $ 2,087 Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of trade accounts receivable. From time to time, the Company maintains cash balances in excess of the Federal Deposit Insurance Corporation limits. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company believes that the carrying amounts for cash, accounts receivable, accounts payable and notes payable approximate their fair values except for fixed rate debt included in notes payable which has an estimated fair value of $140.7 million and $160.6 million compared to the recorded value of $140.0 million and $160.0 million as of December 31, 2016 and 2015, respectively. The estimates of fair value of the Company’s fixed rate debt are based on the borrowing rates currently available to the Company for bank loans with similar terms and average maturities. |
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation The Company's Canadian subsidiary, TRS-RenTelco Inc., a British Columbia corporation (“TRS-Canada”), functions as a branch sales office for TRS-RenTelco in Canada. The functional currency for TRS-Canada is the U.S. dollar. Foreign currency transaction gains and losses of TRS-Canada are reported in the results of operations in the period in which they occur. The Company’s Indian subsidiary, TRS-RenTelco India Private Limited (“TRS-India”), functions as a rental and sales office for TRS-RenTelco in India. The functional currency for TRS-India is the Indian Rupee. All assets and liabilities of TRS-India are translated into U.S. dollars at period-end exchange rates and all income statement amounts are translated at the average exchange rate for each month within the year. Currently, the Company does not use derivative instruments to hedge its economic exposure with respect to assets, liabilities and firm commitments as the foreign currency transactions and risks to date have not been significant. |
Share-Based Compensation | Share-Based Compensation The Company measures and recognizes the compensation expense for all share-based awards made to employees and directors, including stock options, stock appreciation rights (“SARs”) and restricted stock units (“RSUs”), based upon estimated fair values. The fair value of stock options and SARs is estimated on the date of grant using the Black-Scholes option pricing model and for RSUs based upon the fair market value of the underlying shares of common stock as of the date of grant. The Company recognizes share-based compensation cost ratably on a straight-line basis over the requisite service period, which generally equals the vesting period. For performance-based RSUs, compensation costs are recognized when vesting conditions are met. In addition, the Company estimates the probable number of shares of common stock that will be earned and the corresponding compensation cost until the achievement of the performance goal is known. The Company records share-based compensation costs in “Selling and administrative expenses” in the Consolidated Statements of Income. The Company recognizes a benefit from share-based compensation in the Consolidated Statements of Shareholders’ Equity if an incremental tax benefit is realized. Further information regarding share-based compensation can be found in “Note 5 –Benefit Plans”. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions in determining reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during each period presented. Actual results could differ from those estimates. The most significant estimates included in the financial statements are the future cash flows and fair values used to determine the recoverability of the rental equipment and identifiable definite lived intangible assets carrying value, the various assets’ useful lives and residual values, and the allowance for doubtful accounts. |
Reclassification | Reclassification In order to conform to current year presentation, certain prior year amounts on the Consolidated Balance Sheet were reclassified from “Accounts receivable” to “Prepaid expenses and other assets” and debt issuance cost from “Prepaid expenses and other assets” to “Notes payable”. The reclassifications had no impact on net income, earnings per share or operating cash flows. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. The objective of this guidance is to establish the principles to report useful information to users of financial statements about the nature, timing and uncertainty of revenue from contracts with customers. The FASB has continued to issue ASUs to clarify and provide implementation guidance related to Revenue from Contracts with Customers, including ASU 2016-08 , Revenue from Contract with Customers: Principal versus Agent Considerations , ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing , ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients and ASU 2016-20, Revenue from Contracts with Customers: Technical Correction and Improvements. These amendments address a number of areas, including the entity’s identification of its performance obligations in a contract, collectability, non-cash consideration, presentation of sales tax and an entity’s evaluation of the nature of its promise to grant a license of intellectual property and whether or not that revenue is recognized over time or at a point in time. In February 2016, the FASB issued ASU No. 2016-02, Leases (Subtopic 842-10). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) on the commencement date: a) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718). Under the new guidance, all excess tax benefits and tax deficiencies will be recognized in the income statement as they occur. This will replace the current guidance, which requires tax benefits that exceed compensation cost (windfalls) to be recognized in equity, and tax deficiencies (shortfalls) to be recognized in equity to the extent of previously recognized windfalls. It will also eliminate the need to maintain a “windfall pool,” and will remove the requirement to delay recognizing a windfall until it reduces current taxes payable. The new guidance will also change the cash flow presentation of excess tax benefits, classifying them as operating inflows, consistent with other cash flows related to income taxes. The amendments in this guidance are effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. The adoption of this guidance is not expected to have a material impact on the Company’s financial position or results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this guidance are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company is evaluating the impact of the adoption of this guidance on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combination (Topic 805): Clarifying the Definition of a Business. The amendments in this update provide a screen to determine when an integrated set of assets and activities is not a business. The amendments in this guidance are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The adoption of this guidance is not expected to have a material impact on the Company’s financial position or results of operations. |
Income Tax Position | The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. |
Segment Reporting | FASB guidelines establish annual and interim reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. In accordance with these guidelines the Company’s four reportable segments are Mobile Modular, TRS-RenTelco, Adler Tanks and Enviroplex. Management focuses on several key measures to evaluate and assess each segment’s performance including rental revenue growth, gross margin, and income before provision for income taxes. Excluding interest expense, allocations of revenue and expense not directly associated with one of these segments are generally allocated to Mobile Modular, TRS-RenTelco and Adler Tanks, based on their pro-rata share of direct revenues. Interest expense is allocated amongst Mobile Modular, TRS-RenTelco and Adler Tanks based on their pro-rata share of average rental equipment at cost, goodwill, intangible assets, accounts receivable, deferred income and customer security deposits. The Company does not report total assets by business segment. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives and Residual Values of Company's Rental Equipment | The estimated useful lives and residual values of the Company’s rental equipment used for financial reporting purposes are as follows: Relocatable modular buildings 18 years, 50% residual value Relocatable modular accessories 3 to 18 years, no residual value Portable storage containers 25 years, 62.5% residual value Electronic test equipment and accessories 1 to 8 years, no residual value Liquid and solid containment tanks and boxes and accessories 10 to 20 years, no residual value |
Property, Plant and Equipment | Property, plant and equipment consist of the following: (dollar amounts in thousands) Estimated useful life December 31, in years 2016 2015 Land Indefinite $ 45,928 $ 40,378 Land improvements 20 – 50 42,677 42,004 Buildings 30 26,105 25,520 Furniture, office and computer equipment 3 – 10 35,215 34,053 Machinery and service equipment 5 – 25 30,416 28,642 180,341 170,597 Less accumulated depreciation (68,854 ) (61,410 ) 111,487 109,187 Construction in progress 703 566 $ 112,190 $ 109,753 |
Weighted-Average Common Stock Used to Calculate Basic and Diluted Earnings per Share | The table below presents the weighted-average common stock used to calculate basic and diluted earnings per share: (in thousands) Year Ended December 31, 2016 2015 2014 Weighted-average common stock for calculating basic earnings per share 23,900 25,369 25,914 Effect of potentially dilutive securities from equity-based compensation 76 88 261 Weighted-average common stock for calculating diluted earnings per share 23,976 25,457 26,175 |
Securities Not Included in Computation of Diluted Earnings Per Share | The following securities were not included in the computation of diluted earnings per share as their effect would have been anti-dilutive: (in thousands) Year Ended December 31, 2016 2015 2014 Options to purchase common stock 661 746 9 |
Summary of Share Repurchase Activities | The following table presents share repurchase activities during the years ended December 31, 2016 and 2015: Year ended December 31 (in thousands, except share and per share amounts) 2016 2015 Number of shares repurchased — 2,407,974 Aggregate purchase price — 63,953 Average price per repurchased shares — 26.56 |
Summary of Allowance for Doubtful Accounts Activity | The allowance for doubtful accounts activity was as follows: (in thousands) 2016 2015 Beginning balance, January 1 $ 2,087 $ 2,038 Provision for doubtful accounts 1,892 2,149 Write-offs, net of recoveries (1,892 ) (2,100 ) Ending balance, December 31 $ 2,087 $ 2,087 |
Financed Lease Receivables (Tab
Financed Lease Receivables (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Minimum Lease Payments Receivable and Net Investment Included in Accounts Receivable for Leases | The minimum lease payments receivable and the net investment included in accounts receivable for such leases are as follows: (in thousands) December 31, 2016 2015 Gross minimum lease payments receivable $ 3,252 $ 2,745 Less – unearned interest (301 ) (175 ) Net investment in sales type lease receivables $ 2,951 $ 2,570 |
Future Minimum Lease Payments under Non-Cancelable Sales-Type Leases | As of December 31, 2016, the future minimum lease payments under non-cancelable sales-type leases to be received in 2017 and thereafter are as follows: (in thousands) Year Ended December 31, 2017 $ 2,162 2018 605 2019 192 2020 192 2021 101 Total minimum future lease payments $ 3,252 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Components of Notes Payable | Notes payable consists of the following: (in thousands) December 31, 2016 2015 Unsecured revolving lines of credit $ 186,376 $ 221,441 4.03% Series A senior notes due in 2018 40,000 60,000 3.68% Series B senior notes due in 2021 40,000 40,000 3.84% Series C senior notes due in 2022 60,000 60,000 $ 326,376 $ 381,441 |
Schedule of Future Minimum Payments under Unsecured Revolving Lines of Credit and 4.03% Senior Notes, 3.68% Senior Notes and 3.84% Senior Notes | As of December 31, 2016, the future minimum payments under the unsecured revolving lines of credit, 4.03% Series A senior notes due in 2018, 3.68% Series B senior notes due in 2021 and 3.84% Series C senior notes due in 2022 are as follows: (in thousands) Year Ended December 31, 2017 $ 20,000 2018 20,000 2019 — 2020 — 2021 226,376 2022 and thereafter 60,000 $ 326,376 |
Schedule of Information Related to Lines of Credit | The following information relates to the lines of credit for each of the following periods: (dollar amounts in thousands) Year Ended December 31, 2016 2015 Maximum amount outstanding $ 239,820 $ 295,588 Average amount outstanding $ 214,446 $ 236,860 Weighted average interest rate, during the period 2.19 % 2.35 % Prime interest rate, end of period 3.75 % 3.50 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Provision For Income Taxes | Income before provision for income taxes consisted of the following: (in thousands) Year Ended December 31, 2016 2015 2014 U.S. $ 67,199 $ 66,889 $ 76,848 Foreign (268 ) (512 ) (287 ) $ 66,931 $ 66,377 $ 76,561 |
Provision for Income Taxes | The provision for income taxes consisted of the following: (in thousands) Year Ended December 31, 2016 2015 2014 Current: U.S. Federal $ 17,203 $ 7,976 $ 7,494 State 2,049 1,851 2,139 Foreign 1,683 1,645 1,572 20,935 11,472 11,205 Deferred: U.S. Federal 4,005 13,201 17,986 State 3,039 1,538 1,927 Foreign 701 (304 ) (266 ) 7,745 14,435 19,647 Total $ 28,680 $ 25,907 $ 30,852 |
Reconciliation of U.S. Federal Statutory Tax Rate to Company's Effective Tax Rate | The reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2016 2015 2014 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 4.2 4.2 4.1 State deferred tax rate change, net of federal benefit 2.0 (0.4 ) 0.1 Valuation allowance 1.1 — — Other 0.6 0.2 1.1 42.9 % 39.0 % 40.3 % |
Deferred Income Taxes Related to Temporary Differences between Tax Bases of Assets and Liabilities | The following table shows the deferred income taxes related to the temporary differences between the tax bases of assets and liabilities and the respective amounts included in “Deferred income taxes, net” on the Company’s Consolidated Balance Sheets: (in thousands) December 31, 2016 2015 Deferred tax liabilities: Accelerated depreciation $ 293,141 $ 286,618 Prepaid costs currently deductible 6,572 6,997 Other 5,747 5,034 Total deferred tax liabilities 305,460 298,649 Deferred tax assets: Accrued costs not yet deductible 9,785 8,638 Allowance for doubtful accounts 809 804 Net operating loss carry forwards — 577 Deferred revenues 965 1,945 Share-based compensation 1,882 3,334 Total deferred tax assets, net of valuation allowance of $0.7 million in 2016 13,441 15,298 Deferred income taxes, net $ 292,019 $ 283,351 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Company's Option Activity | A summary of the Company’s option activity and related information for the three years ended December 31, 2016 is as follows: Number of options Weighted- average price Weighted- average remaining contractual term (in years) Aggregate intrinsic value (in millions) Balance at December 31, 2013 1,772,062 $ 24.68 Options granted 203,600 32.79 Options exercised (612,682) 21.55 Options cancelled/forfeited/expired (19,220 ) 30.35 Balance at December 31, 2014 1,343,760 27.25 Options granted 456,200 31.69 Options exercised (270,650 ) 19.81 Options cancelled/forfeited/expired (118,660 ) 29.58 Balance at December 31, 2015 1,410,650 29.91 Options granted 881,800 25.26 Options exercised (368,085 ) 27.34 Options cancelled/forfeited/expired (339,930 ) 28.62 Balance at December 31, 2016 1,584,435 $ 28.14 6.20 $ 17.5 Exercisable at December 31, 2016 354,165 $ 30.85 4.70 $ 3.0 Expected to vest after December 31, 2016 1,107,243 $ 27.36 6.63 $ 13.1 |
Options Outstanding and Options Exercisable by Exercise Price with Weighted-Average Remaining Contractual Life for Options Outstanding and Weighted-Average Exercise Price | The following table indicates the options outstanding and options exercisable by exercise price with the weighted-average remaining contractual life for the options outstanding and the weighted-average exercise price at December 31, 2016: Options Outstanding Options Exercisable Exercise price Number outstanding at December Weighted- average remaining contractual life (Years) Weighted- average grant date value Number exercisable at December 31, 2016 Weighted- average grant date value $20 – 25 751,500 6.98 $ 24.60 3,780 $ 23.84 $25 – 30 171,920 4.08 $ 28.59 118,500 $ 28.93 $30 – 35 651,355 5.85 $ 32.06 231,005 $ 32.12 $35 – 40 9,600 6.41 $ 38.43 880 $ 36.62 $20 – 40 1,584,375 6.20 $ 28.14 354,165 $ 30.78 |
Schedule of Weighted-Average Assumptions Used to Determine Fair Value of Option Granted | The fair value of each option granted was estimated on the date of grant using the Black-Scholes option-pricing model using the following weighted-average assumptions: Year Ended December 31, 2016 2015 2014 Expected term (in years) 5.0 5.0 5.0 Expected volatility 28.7 % 31.1 % 40.5 % Expected dividend yields 4.1 % 3.2 % 3.0 % Risk-free interest rates 1.2 % 1.6 % 1.5 % |
Summary of Company's Restricted Stock Units Activity | The following table summarizes the activity of the Company’s RSUs, which includes service-based and performance-based awards, for the three years ended December 31, 2016: Weighted- Aggregate average intrinsic Number grant Date value of shares fair value (in millions) Balance at December 31, 2013 320,980 $ 28.47 RSUs granted 118,864 30.85 RSUs vested (120,721 ) 27.30 RSUs cancelled/forfeited/expired (7,540 ) 30.34 Balance at December 31, 2014 311,583 29.78 RSUs granted 79,300 31.86 RSUs vested (89,915 ) 27.97 RSUs cancelled/forfeited/expired (80,320 ) 31.35 Balance at December 31, 2015 220,648 30.70 RSUs granted 31,900 25.75 RSUs vested (59,008 ) 29.69 RSUs cancelled/forfeited/expired (68,300 ) 29.33 Balance at December 31, 2016 125,240 $ 30.66 $ 4.9 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Minimum Payments under Leases, Exclusive of Property Taxes and Insurance | Minimum payments under these leases, exclusive of property taxes and insurance, are as follows: (in thousands) Year Ended December 31, 2017 $ 1,550 2018 1,148 2019 276 2020 14 2021 14 Thereafter — $ 3,002 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets consist of the following: (dollar amounts in thousands) Estimated useful life December 31, (In years) 2016 2015 Trade name Indefinite $ 5,700 $ 5,700 Customer relationships 11 9,611 9,611 15,311 15,311 Less accumulated amortization (6,716 ) (5,846 ) $ 8,595 $ 9,465 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Summarized Financial Information for Company's Reportable Segments | Summarized financial information for the years ended December 31, 2016, 2015 and 2014, for the Company’s reportable segments is shown in the following tables: Segment Data (dollar amounts in thousands) Mobile Modular TRS- RenTelco Adler Tanks Enviroplex 1 Consolidated Year Ended December 31, 2016 Rental revenues $ 130,496 $ 82,307 $ 58,585 $ — $ 271,388 Rental related services revenues 49,206 2,846 23,807 — 75,859 Sales and other revenues 29,810 23,464 1,438 22,121 76,833 Total revenues 209,512 108,617 83,830 22,121 424,080 Depreciation of rental equipment 21,001 35,256 15,940 — 72,197 Gross profit 93,816 45,797 37,409 7,145 184,167 Selling and administrative expenses 51,432 21,896 27,610 3,970 104,908 Income from operations 42,384 23,901 9,799 3,175 79,259 Interest expense (income) allocation (6,804 ) (2,465 ) (3,200 ) 262 (12,207 ) Income before provision for income taxes 35,580 21,315 6,599 3,437 66,931 Rental equipment acquisitions 43,099 30,505 1,030 — 74,634 Accounts receivable, net (period end) 55,916 19,506 16,150 5,305 96,877 Rental equipment, at cost (period end) 769,190 246,325 308,542 — 1,324,057 Rental equipment, net book value (period end) 544,421 90,172 221,778 — 856,371 Utilization (period end) 2 77.3 % 61.0 % 50.7 % Average utilization 2 76.6 % 60.6 % 50.1 % Segment Data (Continued) (dollar amounts in thousands) Mobile Modular TRS- RenTelco Adler Tanks Enviroplex 1 Consolidated Year Ended December 31, 2015 Rental revenues $ 115,986 $ 89,208 $ 68,502 $ — $ 273,696 Rental related services revenues 45,616 3,055 24,643 — 73,314 Sales and other revenues 22,682 22,754 1,486 10,612 57,534 Total revenues 184,284 115,017 94,631 10,612 404,544 Depreciation of rental equipment 19,246 39,974 15,993 — 75,213 Gross profit 78,771 47,836 47,397 2,903 176,907 Selling and administrative expenses 46,496 22,930 27,494 3,030 99,950 Income (loss) from operations 32,275 24,906 19,903 (127 ) 76,957 Interest expense (income) allocation (5,363 ) (2,194 ) (2,729 ) 194 (10,092 ) Income before provision for income taxes 26,912 22,224 17,174 67 66,377 Rental equipment acquisitions 79,622 44,316 9,440 — 133,378 Accounts receivable, net (period end) 53,550 21,784 17,955 1,728 95,017 Rental equipment, at cost (period end) 736,875 262,945 310,263 — 1,310,083 Rental equipment, net book value (period end) 529,483 102,191 237,927 — 869,601 Utilization (period end) 2 76.9 % 58.7 % 49.7 % Average utilization 2 75.8 % 60.5 % 58.3 % 2014 Rental revenues $ 96,457 $ 99,020 $ 74,098 $ — $ 269,575 Rental related services revenues 35,263 3,331 25,538 — 64,132 Sales and other revenues 29,855 25,951 1,152 17,457 74,415 Total revenues 161,575 128,302 100,788 17,457 408,122 Depreciation of rental equipment 16,536 40,935 15,207 — 72,678 Gross profit 63,455 60,249 53,452 5,063 182,219 Selling and administrative expenses 42,069 23,736 27,424 3,630 96,859 Income from operations 21,386 36,513 26,028 1,433 85,360 Interest expense (income) allocation 4,768 2,075 2,618 (181 ) 9,280 Income before provision for income taxes 16,959 34,383 23,605 1,614 76,561 Rental equipment acquisitions 82,792 45,158 20,652 — 148,602 Accounts receivable, net (period end) 46,659 28,849 21,031 4,617 101,156 Rental equipment, at cost (period end) 664,340 261,995 303,303 — 1,229,638 Rental equipment, net book value (period end) 473,960 105,729 246,061 — 825,750 Utilization (period end) 2 75.0 % 59.8 % 63.9 % Average utilization 2 72.3 % 60.4 % 62.9 % 1 Gross Enviroplex sales revenues were $22,206, $11,530 and $19,017 in 2016, 2015 and 2014, respectively, which includes inter-segment sales to Mobile Modular of $85, $918 and $1,560, which have been eliminated in consolidation. 2 Utilization is calculated each month by dividing the cost of rental equipment on rent by the total cost of rental equipment excluding new equipment inventory and accessory equipment. The average utilization for the period is calculated using the average costs of rental equipment. |
Quarterly Financial Informati29
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarterly financial information for each of the two years ended December 31, 2016 is summarized below: (in thousands, except per share amounts) 2016 First Second Third Fourth Year Operations Data Rental revenues $ 66,532 $ 66,747 $ 67,757 $ 70,352 $ 271,388 Total revenues 93,699 103,105 121,993 105,283 424,080 Gross profit 40,655 43,756 50,433 49,323 184,167 Income from operations 14,258 18,073 24,232 22,696 79,259 Income before provision for income taxes 10,853 15,006 21,277 19,795 66,931 Net income 6,566 9,079 12,872 9,734 38,251 Earnings per share: Basic $ 0.28 $ 0.38 $ 0.54 $ 0.41 $ 1.60 Diluted $ 0.27 $ 0.38 $ 0.54 $ 0.40 $ 1.60 Dividends declared per share $ 0.255 $ 0.255 $ 0.255 $ 0.255 $ 1.02 Shares used in per share calculations: Basic 23,862 23,900 23,911 23,927 23,900 Diluted 23,911 23,949 24,041 24,123 23,976 Balance Sheet Data Rental equipment, net $ 867,215 $ 868,422 $ 862,528 $ 856,371 $ 856,371 Total assets 1,132,355 1,148,018 1,144,923 1,128,276 1,128,276 Notes payable 365,772 363,121 345,286 326,266 326,266 Shareholders’ equity 380,512 383,313 390,600 394,287 394,287 2015 First Second Third Fourth Year Operations Data Rental revenues $ 65,502 $ 67,305 $ 70,195 $ 70,694 $ 273,696 Total revenues 90,188 96,026 113,048 105,282 404,544 Gross profit 39,087 40,918 50,146 46,756 176,907 Income from operations 13,875 16,465 25,150 21,467 76,957 Income before provision for income taxes 11,316 14,033 22,505 18,523 66,377 Net income 6,846 8,490 13,616 11,518 40,470 Earnings per share: Basic $ 0.26 $ 0.33 $ 0.54 $ 0.48 $ 1.60 Diluted $ 0.26 $ 0.32 $ 0.54 $ 0.48 $ 1.59 Dividends declared per share $ 0.250 $ 0.250 $ 0.250 $ 0.250 $ 1.00 Shares used in per share calculations: Basic 26,091 26,142 25,334 23,932 25,369 Diluted 26,276 26,273 25,408 24,015 25,457 Balance Sheet Data Rental equipment, net $ 839,078 $ 856,489 $ 864,277 $ 869,601 $ 869,601 Total assets 1,112,056 1,132,750 1,149,095 1,152,549 1,152,549 Notes payable 320,923 337,177 382,113 381,281 381,281 Shareholders’ equity 425,848 426,823 389,464 379,687 379,687 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2016USD ($)DivisionSegmentshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Aug. 31, 2015shares | May 31, 2008shares | |
Accounting Policies [Abstract] | |||||
Number of divisions | Division | 4 | ||||
Number of reportable segments | Segment | 4 | ||||
Impairments of long-lived assets | $ 0 | $ 0 | $ 0 | ||
Period for warranties for rental equipment | 90 days | ||||
Period for warranties for equipment manufactured | 1 year | ||||
Property, plant and equipment depreciation expenses | $ 8,100,000 | 8,200,000 | 7,600,000 | ||
Capitalized in internal use of software | 200,000 | 600,000 | |||
Total advertising expenses | $ 2,900,000 | 2,800,000 | 2,400,000 | ||
Estimated useful life (In years), Customer relationships | 11 years | ||||
Goodwill and trade name intangible assets | $ 33,500,000 | 33,500,000 | |||
Goodwill and intangible assets impairment charge | $ 0 | 0 | $ 0 | ||
Common stock shares authorized for repurchase | shares | 2,000,000 | 2,000,000 | |||
Shares remain authorized for repurchase | shares | 1,592,026 | ||||
Unbilled receivables related to end-of-lease services | $ 28,100,000 | 25,000,000 | |||
Period for credit risk identified | 30 days | ||||
Estimated fair value notes payable | $ 140,700,000 | 160,600,000 | |||
Recorded fair value of notes payable | $ 140,000,000 | $ 160,000,000 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Estimated Useful Lives and Residual Values of Company's Rental Equipment (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Relocatable modular buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property subject to or available for operating lease useful life | 18 years |
Percentage residual value property subject to or available for operating lease | 50.00% |
Relocatable modular accessories [Member] | |
Property, Plant and Equipment [Line Items] | |
Percentage residual value property subject to or available for operating lease | 0.00% |
Portable storage containers [Member] | |
Property, Plant and Equipment [Line Items] | |
Property subject to or available for operating lease useful life | 25 years |
Percentage residual value property subject to or available for operating lease | 62.50% |
Electronic test equipment and accessories [Member] | |
Property, Plant and Equipment [Line Items] | |
Percentage residual value property subject to or available for operating lease | 0.00% |
Liquid and solid containment tanks and boxes and accessories [Member] | |
Property, Plant and Equipment [Line Items] | |
Percentage residual value property subject to or available for operating lease | 0.00% |
Minimum [Member] | Relocatable modular accessories [Member] | |
Property, Plant and Equipment [Line Items] | |
Property subject to or available for operating lease useful life | 3 years |
Minimum [Member] | Electronic test equipment and accessories [Member] | |
Property, Plant and Equipment [Line Items] | |
Property subject to or available for operating lease useful life | 1 year |
Minimum [Member] | Liquid and solid containment tanks and boxes and accessories [Member] | |
Property, Plant and Equipment [Line Items] | |
Property subject to or available for operating lease useful life | 10 years |
Maximum [Member] | Relocatable modular accessories [Member] | |
Property, Plant and Equipment [Line Items] | |
Property subject to or available for operating lease useful life | 18 years |
Maximum [Member] | Electronic test equipment and accessories [Member] | |
Property, Plant and Equipment [Line Items] | |
Property subject to or available for operating lease useful life | 8 years |
Maximum [Member] | Liquid and solid containment tanks and boxes and accessories [Member] | |
Property, Plant and Equipment [Line Items] | |
Property subject to or available for operating lease useful life | 20 years |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 180,341 | $ 170,597 |
Less accumulated depreciation | (68,854) | (61,410) |
Property plant and equipment net excluding capitalized cost | 111,487 | 109,187 |
Construction in progress | 703 | 566 |
Property, Plant and Equipment, net | 112,190 | 109,753 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 45,928 | 40,378 |
Estimated useful life | Indefinite | |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 42,677 | 42,004 |
Land Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 20 years | |
Land Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 50 years | |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 26,105 | 25,520 |
Estimated useful life | 30 years | |
Furniture, Office and Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 35,215 | 34,053 |
Furniture, Office and Computer Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Furniture, Office and Computer Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Machinery and Service Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 30,416 | $ 28,642 |
Machinery and Service Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Machinery and Service Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 25 years |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Weighted-Average Common Stock Used to Calculate Basic and Diluted Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Weighted-average common stock for calculating basic earnings per share | 23,927 | 23,911 | 23,900 | 23,862 | 23,932 | 25,334 | 26,142 | 26,091 | 23,900 | 25,369 | 25,914 |
Effect of potentially dilutive securities from equity-based compensation | 76 | 88 | 261 | ||||||||
Weighted-average common stock for calculating diluted earnings per share | 24,123 | 24,041 | 23,949 | 23,911 | 24,015 | 25,408 | 26,273 | 26,276 | 23,976 | 25,457 | 26,175 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Securities Not Included in Computation of Diluted Earnings Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Options to purchase common stock | 661 | 746 | 9 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Summary of Share Repurchase Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | ||
Number of shares repurchased | 0 | 2,407,974 |
Aggregate purchase price | $ 63,953 | |
Average price per repurchased shares | $ 26.56 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Summary of Allowance for Doubtful Accounts Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts, Beginning Balance | $ 2,087 | $ 2,038 | |
Provision for doubtful accounts | 1,892 | 2,149 | $ 1,825 |
Write-offs, net of recoveries | (1,892) | (2,100) | |
Allowance for doubtful accounts, Ending Balance | $ 2,087 | $ 2,087 | $ 2,038 |
Financed Lease Receivables - Mi
Financed Lease Receivables - Minimum Lease Payments Receivable and Net Investment Included in Accounts Receivable for Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Minimum lease payments receivable and net investment included in accounts receivable for leases | ||
Gross minimum lease payments receivable | $ 3,252 | $ 2,745 |
Less – unearned interest | (301) | (175) |
Net investment in sales type lease receivables | $ 2,951 | $ 2,570 |
Financed Lease Receivables - Fu
Financed Lease Receivables - Future Minimum Lease Payments under Non-Cancelable Sales-Type Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Future minimum lease payments under non-cancelable sales-type leases | ||
2,017 | $ 2,162 | |
2,018 | 605 | |
2,019 | 192 | |
2,020 | 192 | |
2,021 | 101 | |
Total minimum future lease payments | $ 3,252 | $ 2,745 |
Notes Payable - Components of N
Notes Payable - Components of Notes Payable (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Notes payable | $ 326,376 | $ 381,441 |
Unsecured Revolving Lines of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 186,376 | 221,441 |
Series A senior notes [Member] | 4.03% Series A senior notes due in 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 40,000 | 60,000 |
Series B Senior Notes | 3.68% Series B senior notes due in 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 40,000 | 40,000 |
Series C Senior Notes | 3.84% Series C senior notes due in 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 60,000 | $ 60,000 |
Notes Payable - Components of40
Notes Payable - Components of Notes Payable (Parenthetical) (Detail) | 12 Months Ended | |||
Dec. 31, 2016 | Nov. 05, 2015 | Mar. 17, 2014 | Apr. 21, 2011 | |
Series A senior notes [Member] | 4.03% Series A senior notes due in 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, interest rate | 4.03% | 4.03% | ||
Senior Notes, year of maturity | 2,018 | |||
Series B Senior Notes | 3.68% Series B senior notes due in 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, interest rate | 3.68% | 3.68% | ||
Senior Notes, year of maturity | 2,021 | |||
Series C Senior Notes | 3.84% Series C senior notes due in 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, interest rate | 3.84% | 3.84% | ||
Senior Notes, year of maturity | 2,022 |
Notes Payable - Schedule of Fut
Notes Payable - Schedule of Future Minimum Payments under Unsecured Revolving Lines of Credit and 4.03% Senior Notes, 3.68% Senior Notes and 3.84% Senior Notes (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Notes payable | $ 326,376 | $ 381,441 |
Notes Payable to Banks and Others [Member] | ||
Debt Instrument [Line Items] | ||
2,017 | 20,000 | |
2,018 | 20,000 | |
2,021 | 226,376 | |
2022 and thereafter | 60,000 | |
Notes payable | $ 326,376 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) - USD ($) | Nov. 05, 2015 | Mar. 17, 2014 | Dec. 31, 2016 | Mar. 31, 2016 | Feb. 09, 2016 | Dec. 31, 2015 | Apr. 21, 2011 |
Debt Instrument [Line Items] | |||||||
Consolidated Fixed Charge Coverage Ratio | 2.50% | ||||||
Consolidated Fixed Charge Coverage Ratio, actual | 3.74% | ||||||
Consolidated Leverage Ratio | 2.75% | ||||||
Consolidated Leverage Ratio, actual | 2.00% | ||||||
Line of credit facility covenants tangible net worth description | Permit Tangible Net Worth, calculated as of the last day of each fiscal quarter, to be less than the sum of (i) $229.0 million, plus (ii) 25% of net income for such fiscal quarter subsequent to December 31, 2010, plus (iii) 90% of the net cash proceeds from the issuance of the Company’s capital stock after December 31, 2010. | ||||||
Tangible Net Worth sum | $ 313,300,000 | ||||||
Consolidated Net Income | 25.00% | ||||||
Percentage of net cash proceeds from issuance of capital stock | 90.00% | ||||||
Actual tangible net worth | $ 357,900,000 | ||||||
Senior notes principal balance outstanding | $ 326,376,000 | $ 381,441,000 | |||||
2016 Amendment [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes description | (i) the issuance period for the shelf notes to be issued and sold pursuant to the Note Purchase Agreement is extended until the earlier of February 9, 2019 or the termination of the issuance and sale of the shelf notes upon the 30 days’ prior notice of either PIM or the Company, and (ii) the definition of the “Available Facility Amount,” which is the aggregate amount of the shelf notes that may be authorized for purchase pursuant to the Note Purchase Agreement was amended to equal a formula based on: $250 million, minus the aggregate principal amount of the shelf notes then outstanding and purchased pursuant to the Note Purchase Agreement, minus the shelf notes accepted by the Company for purchase, but not yet purchased, by the Purchaser pursuant to the Note Purchase Agreement; provided, however, the aggregate amount of the shelf notes purchased by any corporation or other entity controlling, controlled by, or under common control with, PIM shall not exceed $200 million. | ||||||
Stated formula value for determining available facility amount | $ 250,000,000 | ||||||
Series A senior notes [Member] | 4.03% Series A senior notes due in 2018 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 100,000,000 | ||||||
Senior notes interest rate | 4.03% | 4.03% | |||||
Debt instrument, payment terms | Interest on these notes is due semi-annually in arrears and the principal is due in five equal annual installments, with the first payment due on April 21, 2014. | ||||||
Debt instrument, maturity date | Apr. 21, 2018 | ||||||
Debt instrument, date of first required payment | Apr. 21, 2014 | ||||||
Senior notes principal balance outstanding | $ 40,000,000 | 60,000,000 | |||||
Series B Senior Notes | 3.68% Series B senior notes due in 2021 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes interest rate | 3.68% | 3.68% | |||||
Debt instrument, maturity date | Mar. 17, 2021 | ||||||
Senior notes principal balance outstanding | $ 40,000,000 | 40,000,000 | |||||
Proceeds from issuance of senior notes | $ 40,000,000 | ||||||
Senior notes description | The Series B Senior Notes are an unsecured obligation of the Company, bear interest at a rate of 3.68% per annum and mature on March 17, 2021. Interest on the Series B Senior Notes is payable semi-annually beginning on September 17, 2014 and continuing thereafter on March 17 and September 17 of each year until maturity. | ||||||
Senior notes interest payment | Semi-annually | ||||||
Series C Senior Notes | 3.84% Series C senior notes due in 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes interest rate | 3.84% | 3.84% | |||||
Debt instrument, payment terms | Interest on the Series C Senior Notes is payable semi-annually beginning on May 5, 2016 and continuing thereafter on November 5 and May 5 of each year until maturity. | ||||||
Debt instrument, maturity date | Nov. 5, 2022 | ||||||
Debt instrument, date of first required payment | May 5, 2016 | ||||||
Senior notes principal balance outstanding | $ 60,000,000 | $ 60,000,000 | |||||
Proceeds from issuance of senior notes | $ 60,000,000 | ||||||
Senior notes interest payment | Semi-annually | ||||||
Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Tangible Net Worth sum | $ 229,000,000 | ||||||
Maximum [Member] | 2016 Amendment [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 200,000,000 | ||||||
Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Revolving credit facility, maturity period | 5 years | ||||||
Revolving credit facility, maturity date | Mar. 31, 2021 | ||||||
Credit facility, maximum | $ 420,000,000 | ||||||
Revolving credit facility, available maximum borrowing capacity | 620,000,000 | ||||||
Additional commitments | $ 200,000,000 | ||||||
Consolidated Fixed Charge Coverage Ratio | 2.50% | ||||||
Consolidated Fixed Charge Coverage Ratio, actual | 3.74% | ||||||
Consolidated Leverage Ratio | 2.75% | ||||||
Consolidated Leverage Ratio, actual | 2.00% | ||||||
Line of credit facility covenants tangible net worth description | Permit Tangible Net Worth as of the end of any fiscal quarter of the Company to be less than the sum of (i) $246.1 million plus (ii) 25% of the Company’s Consolidated Net Income (as defined in the Amended Credit Facility) (but only if a positive number) for each fiscal quarter ended subsequent to December 31, 2011 | ||||||
Tangible Net Worth sum | $ 313,300,000 | ||||||
Consolidated Net Income | 25.00% | ||||||
Percentage of net cash proceeds from issuance of capital stock | 90.00% | ||||||
Actual tangible net worth | $ 357,900,000 | ||||||
Debt instrument description of variable rate basis | (i) LIBOR plus a defined margin, or (ii) the Agent bank’s prime rate (“base rate”) plus a margin. The applicable margin for each type of loan is measured based upon the Consolidated Leverage Ratio at the end of the prior fiscal quarter and ranges from 1.00% to 1.75% for LIBOR loans and 0% to 0.75% for base rate loans. In addition, the Company pays an unused commitment fee for the portion of the $420.0 million credit facility that is not used. These fees are based upon the Consolidated Leverage Ratio and range from 0.15% to 0.30%. As of December 31, 2016 and 2015, the applicable margins were 1.50% and 1.75% for LIBOR based loans, respectively, 0.50% and 0.75% for base rate loans, respectively and 0.25% and 0.30% for unused fees, respectively. Amounts borrowed under the Sweep Service Facility are based upon the MUFG Union Bank, N.A. base rate plus an applicable margin and an unused commitment fee for the portion of the $12.0 million facility not used. | ||||||
Unused commitment fees | $ 420,000,000 | ||||||
Credit Facility [Member] | Unused Fees [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument interest rate at period end | 0.25% | 0.30% | |||||
Credit Facility [Member] | LIBOR Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument interest rate at period end | 1.50% | 1.75% | |||||
Credit Facility [Member] | Base Rate Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument interest rate at period end | 0.50% | 0.75% | |||||
Credit Facility [Member] | Sweep Service Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, maximum | $ 432,000,000 | ||||||
Revolving credit facility, available maximum borrowing capacity | 245,600,000 | ||||||
Amount outstanding | 186,400,000 | ||||||
Unused commitment fees | 12,000,000 | ||||||
Credit Facility [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Tangible Net Worth sum | $ 246,100,000 | ||||||
Leverage ratio | 0.15% | ||||||
Credit Facility [Member] | Minimum [Member] | LIBOR Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Leverage ratio | 1.00% | ||||||
Credit Facility [Member] | Minimum [Member] | Base Rate Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Leverage ratio | 0.00% | ||||||
Credit Facility [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Leverage ratio | 0.30% | ||||||
Credit Facility [Member] | Maximum [Member] | LIBOR Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Leverage ratio | 1.75% | ||||||
Credit Facility [Member] | Maximum [Member] | Base Rate Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Leverage ratio | 0.75% | ||||||
Unsecured revolving credit facility before Renewal [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, maximum | $ 420,000,000 | ||||||
Letters of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, maximum | 25,000,000 | ||||||
Letters of Credit [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, maximum | $ 10,000,000 | ||||||
Letters of Credit [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, maximum | $ 12,000,000 | ||||||
Swingline Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, maximum | $ 10,000,000 |
Notes Payable - Schedule of Inf
Notes Payable - Schedule of Information Related to Lines of Credit (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | ||
Maximum amount outstanding | $ 239,820 | $ 295,588 |
Average amount outstanding | $ 214,446 | $ 236,860 |
Weighted average interest rate, during the period | 2.19% | 2.35% |
Prime interest rate, end of period | 3.75% | 3.50% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Provision For Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest [Abstract] | |||||||||||
U.S. | $ 67,199 | $ 66,889 | $ 76,848 | ||||||||
Foreign | (268) | (512) | (287) | ||||||||
Income before provision for income taxes | $ 19,795 | $ 21,277 | $ 15,006 | $ 10,853 | $ 18,523 | $ 22,505 | $ 14,033 | $ 11,316 | $ 66,931 | $ 66,377 | $ 76,561 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
U.S. Federal | $ 17,203 | $ 7,976 | $ 7,494 |
State | 2,049 | 1,851 | 2,139 |
Foreign | 1,683 | 1,645 | 1,572 |
Current income tax expense (benefit) | 20,935 | 11,472 | 11,205 |
Deferred: | |||
U.S. Federal | 4,005 | 13,201 | 17,986 |
State | 3,039 | 1,538 | 1,927 |
Foreign | 701 | (304) | (266) |
Deferred income tax expense (benefit) | 7,745 | 14,435 | 19,647 |
Total | $ 28,680 | $ 25,907 | $ 30,852 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Federal Statutory Tax Rate to Company's Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 4.20% | 4.20% | 4.10% |
State deferred tax rate change, net of federal benefit | 2.00% | (0.40%) | 0.10% |
Valuation allowance | 1.10% | ||
Other | 0.60% | 0.20% | 1.10% |
Effective Income Tax Rate | 42.90% | 39.00% | 40.30% |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes Related to Temporary Differences between Tax Bases of Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax liabilities: | ||
Accelerated depreciation | $ 293,141 | $ 286,618 |
Prepaid costs currently deductible | 6,572 | 6,997 |
Other | 5,747 | 5,034 |
Total deferred tax liabilities | 305,460 | 298,649 |
Deferred tax assets: | ||
Accrued costs not yet deductible | 9,785 | 8,638 |
Allowance for doubtful accounts | 809 | 804 |
Net operating loss carry forwards | 577 | |
Deferred revenues | 965 | 1,945 |
Share-based compensation | 1,882 | 3,334 |
Total deferred tax assets, net of valuation allowance of $0.7 million in 2016 | 13,441 | 15,298 |
Deferred income taxes, net | $ 292,019 | $ 283,351 |
Income Taxes - Deferred Incom48
Income Taxes - Deferred Income Taxes Related to Temporary Differences between Tax Bases of Assets and Liabilities (Parenthetical) (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, valuation allowance | $ 700,000 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, valuation allowance | $ 700,000 | $ 0 | |
Excess tax shortfall (benefit) from exercise of stock options | 1,100,000 | 300,000 | $ (1,800,000) |
Undistributed earnings of foreign subsidiaries | $ 1,900,000 | 1,900,000 | |
Likelihood percentage of being realized upon ultimate settlement with the relevant tax authority | 50.00% | ||
Unrecognized tax benefits | $ 0 | 0 | |
Changes in unrecognized benefits | 0 | $ 0 | $ 0 |
TRS-RenTelco [Member] | Bangalore, India [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, valuation allowance | $ 700,000 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 08, 2016 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 3,091,000 | $ 3,399,000 | $ 3,854,000 | ||
Tax benefit related to share-based compensation expense | 1,200,000 | 1,300,000 | 1,500,000 | ||
Capitalized share-based compensation expense | 0 | 0 | 0 | ||
Amount of reduction in net income due to share-based compensation expense | $ 1,900,000 | $ 2,100,000 | $ 2,300,000 | ||
Amount of reduction in diluted earning per share to share-based compensation expense | $ 0.08 | $ 0.08 | $ 0.09 | ||
Stock option plans remain outstanding | 1,584,435 | 1,410,650 | 1,343,760 | 1,772,062 | |
Weighted average grant date fair value | $ 4.14 | $ 6.60 | $ 9.17 | ||
Dividends deducted | $ 400,000 | ||||
Tax benefit from dividends | $ 100,000 | ||||
Shares outstanding, employee stock ownership plan | 335,334 | ||||
Percentage of total common shares outstanding | 2.00% | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of additional shares authorized | 2,251,074 | ||||
Stock options granted | 8,159,000 | ||||
Stock options, exercise prices lower | $ 3.47 | ||||
Stock options, exercise prices upper | $ 39.19 | ||||
Purchase of shares | 5,222,603 | ||||
Stock option shares terminated | 1,351,962 | ||||
Stock option plans remain outstanding | 1,584,435 | ||||
Stock options outstanding, exercise prices lower | $ 23.84 | ||||
Stock options outstanding, exercise prices upper | $ 39.19 | ||||
Stock options vesting period | 5 years | ||||
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 7 years | ||||
Options issued to non-employee advisors | 0 | ||||
Aggregate intrinsic value of options exercised and sold | $ 4,200,000 | $ 5,700,000 | $ 8,400,000 | ||
Total unrecognized compensation cost | $ 5,700,000 | ||||
Expected recognition period of unrecognized compensation expense | 3 years 1 month 6 days | ||||
Performance-based RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options vesting period | 5 years | ||||
Percentage of vesting annually at anniversary | 20.00% | ||||
Number of RSU's expected to vest | 30,380 | ||||
Performance-based RSUs [Member] | Vesting after three years [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of vesting RSUs | 60.00% | ||||
Service-based RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of RSU's expected to vest | 23,400 | ||||
Number of forfeitures expected | 0 | ||||
Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected recognition period of unrecognized compensation expense | 2 years 3 months 18 days | ||||
Number of forfeitures expected | 68,300 | 80,320 | 7,540 | ||
Stock-based compensation expense for restricted stock | $ 1,000,000 | $ 1,700,000 | $ 2,300,000 | ||
Total unrecognized compensation expense net of forfeitures | $ 600,000 | ||||
Maximum [Member] | Service-based RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options vesting period | 14 months | ||||
Minimum [Member] | Service-based RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options vesting period | 12 months | ||||
2007 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reduction in common stock available for grant | 2 | ||||
Common Stock [Member] | 2016 Stock Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares of common stock remained available for grants of awards | 2,000,000 | ||||
Common Stock [Member] | 2016 Stock Incentive Plan [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term of award (in years) | 7 years | ||||
Common Stock [Member] | 2016 Stock Incentive Plan [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Rate of exercise price for equity award granted | 100.00% |
Benefit Plans - Summary of Comp
Benefit Plans - Summary of Company's Option Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Options, Beginning Balance | 1,410,650 | 1,343,760 | 1,772,062 |
Number of Options, granted | 881,800 | 456,200 | 203,600 |
Number of Options, exercised | (368,085) | (270,650) | (612,682) |
Number of Options, cancelled/forfeited/expired | (339,930) | (118,660) | (19,220) |
Number of Options, Ending Balance | 1,584,435 | 1,410,650 | 1,343,760 |
Number of Options, Exercisable at December 31, 2016 | 354,165 | ||
Number of Options, Expected to Vest after December 31, 2016 | 1,107,243 | ||
Weighted-Average Price, Beginning Balance | $ 29.91 | $ 27.25 | $ 24.68 |
Weighted-Average Price, Options granted | 25.26 | 31.69 | 32.79 |
Weighted-Average Price, Options exercised | 27.34 | 19.81 | 21.55 |
Weighted-Average Price, Options cancelled/forfeited/expired | 28.62 | 29.58 | 30.35 |
Weighted-Average Price, Ending Balance | 28.14 | $ 29.91 | $ 27.25 |
Weighted-Average Price, Exercisable at December 31, 2016 | 30.85 | ||
Weighted-Average Price, Expected to Vest after December 31, 2016 | $ 27.36 | ||
Weighted-Average Remaining Contractual Term, Balance At December 31, 2016 | 6 years 2 months 12 days | ||
Weighted-Average Remaining Contractual Term, Exercisable at December 31, 2016 | 4 years 8 months 12 days | ||
Weighted-Average Remaining Contractual Term, Expected to Vest after December 31, 2016 | 6 years 7 months 17 days | ||
Aggregate Intrinsic Value, Balance At December 31, 2016 | $ 17.5 | ||
Aggregate Intrinsic Value, Exercisable at December 31, 2016 | 3 | ||
Aggregate Intrinsic Value, Expected to Vest after December 31, 2016 | $ 13.1 |
Benefit Plans - Options Outstan
Benefit Plans - Options Outstanding and Options Exercisable by Exercise Price with Weighted-Average Remaining Contractual Life for Options Outstanding and Weighted-Average Exercise Price (Detail) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Exercise Price 20-25 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Lower Range Limit | $ 20 |
Exercise Price Upper Range Limit | $ 25 |
Options Outstanding, Number | shares | 751,500 |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 6 years 11 months 23 days |
Options Outstanding, Weighted-Average Grant Date Value | $ 24.60 |
Options Exercisable, Number | shares | 3,780 |
Options Exercisable, Weighted-Average Grant Date Value | $ 23.84 |
Exercise Price 25-30 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Lower Range Limit | 25 |
Exercise Price Upper Range Limit | $ 30 |
Options Outstanding, Number | shares | 171,920 |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 4 years 29 days |
Options Outstanding, Weighted-Average Grant Date Value | $ 28.59 |
Options Exercisable, Number | shares | 118,500 |
Options Exercisable, Weighted-Average Grant Date Value | $ 28.93 |
Exercise Price 30-35 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Lower Range Limit | 30 |
Exercise Price Upper Range Limit | $ 35 |
Options Outstanding, Number | shares | 651,355 |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 5 years 10 months 6 days |
Options Outstanding, Weighted-Average Grant Date Value | $ 32.06 |
Options Exercisable, Number | shares | 231,005 |
Options Exercisable, Weighted-Average Grant Date Value | $ 32.12 |
Exercise Price 35-40 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Lower Range Limit | 35 |
Exercise Price Upper Range Limit | $ 40 |
Options Outstanding, Number | shares | 9,600 |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 6 years 4 months 28 days |
Options Outstanding, Weighted-Average Grant Date Value | $ 38.43 |
Options Exercisable, Number | shares | 880 |
Options Exercisable, Weighted-Average Grant Date Value | $ 36.62 |
Exercise Price 20-40 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Lower Range Limit | 20 |
Exercise Price Upper Range Limit | $ 40 |
Options Outstanding, Number | shares | 1,584,375 |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 6 years 2 months 12 days |
Options Outstanding, Weighted-Average Grant Date Value | $ 28.14 |
Options Exercisable, Number | shares | 354,165 |
Options Exercisable, Weighted-Average Grant Date Value | $ 30.78 |
Benefit Plans - Schedule of Wei
Benefit Plans - Schedule of Weighted-Average Assumptions Used to Determine Fair Value of Option Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Expected term (in years) | 5 years | 5 years | 5 years |
Expected volatility | 28.70% | 31.10% | 40.50% |
Expected dividend yields | 4.10% | 3.20% | 3.00% |
Risk-free interest rates | 1.20% | 1.60% | 1.50% |
Benefit Plans - Summary of Co54
Benefit Plans - Summary of Company's Restricted Stock Units Activity (Detail) - Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Beginning Balance | 220,648 | 311,583 | 320,980 |
Number of Shares, granted | 31,900 | 79,300 | 118,864 |
Number of Shares, vested | (59,008) | (89,915) | (120,721) |
Number of Shares, cancelled/forfeited/expired | (68,300) | (80,320) | (7,540) |
Number of Shares, Ending Balance | 125,240 | 220,648 | 311,583 |
Weighted-Average Grant Date Fair Value, Beginning Balance | $ 30.70 | $ 29.78 | $ 28.47 |
Weighted-Average Grant Date Fair Value, granted | 25.75 | 31.86 | 30.85 |
Weighted-Average Grant Date Fair Value, vested | 29.69 | 27.97 | 27.30 |
Weighted-Average Grant Date Fair Value, cancelled/forfeited/expired | 29.33 | 31.35 | 30.34 |
Weighted-Average Grant Date Fair Value, Ending Balance | $ 30.66 | $ 30.70 | $ 29.78 |
Aggregate Intrinsic Value | $ 4.9 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Aug. 31, 2015 | May 31, 2008 | |
Stockholders Equity Note [Abstract] | ||||
Common stock shares authorized for repurchase | 2,000,000 | 2,000,000 | ||
Shares remain authorized for repurchase | 1,592,026 | |||
Common stock repurchased, Shares | 0 | 2,407,974 | ||
Aggregate purchase price | $ 63,953 | |||
Average price per repurchased shares | $ 26.56 |
Commitments and Contingencies -
Commitments and Contingencies - Minimum Payments under Leases, Exclusive of Property Taxes and Insurance (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2,017 | $ 1,550 |
2,018 | 1,148 |
2,019 | 276 |
2,020 | 14 |
2,021 | 14 |
Thereafter | 0 |
Total minimum future lease payments | $ 3,002 |
Commitments and Contingencies57
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rent expense | $ 3,500,000 | $ 3,500,000 | $ 3,400,000 |
Health compensation plan annual stop-loss insurance per claim | 150,000 | ||
Workers compensation plan annual stop-loss insurance per claim | 250,000 | ||
Accruals for health and workers' compensation plans | $ 2,400,000 | $ 1,900,000 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Trade name | $ 5,700 | $ 5,700 |
Customer relationships | 9,611 | 9,611 |
Intangible Assets, gross | 15,311 | 15,311 |
Less accumulated amortization | (6,716) | (5,846) |
Intangible Assets, net | $ 8,595 | $ 9,465 |
Estimated useful life (In years), Customer relationships | 11 years |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 900,000 | $ 900,000 | $ 800,000 |
Subsequent impairment of the underlying assets | 0 | ||
Expected annual amortization expense for 2017 | 900,000 | ||
Expected annual amortization expense for 2018 | 900,000 | ||
Expected annual amortization expense for 2019 | 900,000 | ||
Expected annual amortization expense for 2020 | $ 200,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transactions [Abstract] | ||
Amount due from (to) related party | $ 0 | $ 0 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 4 | ||
Customer Concentration Risk [Member] | Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from customers | 10.00% | 10.00% | 10.00% |
Geographic Concentration Risk [Member] | Sales [Member] | Foreign Country Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from customers | 5.00% | 5.00% | 5.00% |
Segment Reporting - Summarized
Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Rental revenues | $ 70,352 | $ 67,757 | $ 66,747 | $ 66,532 | $ 70,694 | $ 70,195 | $ 67,305 | $ 65,502 | $ 271,388 | $ 273,696 | $ 269,575 | |
Rental related services revenues | 75,859 | 73,314 | 64,132 | |||||||||
Sales and other revenues | 76,833 | 57,534 | 74,415 | |||||||||
Total revenues | 105,283 | 121,993 | 103,105 | 93,699 | 105,282 | 113,048 | 96,026 | 90,188 | 424,080 | 404,544 | 408,122 | |
Depreciation of rental equipment | 72,197 | 75,213 | 72,678 | |||||||||
Gross profit | 49,323 | 50,433 | 43,756 | 40,655 | 46,756 | 50,146 | 40,918 | 39,087 | 184,167 | 176,907 | 182,219 | |
Selling and administrative expenses | 104,908 | 99,950 | 96,859 | |||||||||
Income (loss) from operations | 22,696 | 24,232 | 18,073 | 14,258 | 21,467 | 25,150 | 16,465 | 13,875 | 79,259 | 76,957 | 85,360 | |
Interest expense (income) allocation | (12,207) | (10,092) | 9,280 | |||||||||
Income before provision for income taxes | 19,795 | 21,277 | 15,006 | 10,853 | 18,523 | 22,505 | 14,033 | 11,316 | 66,931 | 66,377 | 76,561 | |
Rental equipment acquisitions | 74,634 | 133,378 | 148,602 | |||||||||
Accounts receivable, net (period end) | 96,877 | 95,017 | 96,877 | 95,017 | 101,156 | |||||||
Rental equipment, at cost (period end) | 1,324,057 | 1,310,083 | 1,324,057 | 1,310,083 | 1,229,638 | |||||||
Rental equipment, net book value (period end) | 856,371 | $ 862,528 | $ 868,422 | $ 867,215 | 869,601 | $ 864,277 | $ 856,489 | $ 839,078 | 856,371 | 869,601 | 825,750 | |
Mobile Modular [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Rental revenues | 130,496 | 115,986 | 96,457 | |||||||||
Rental related services revenues | 49,206 | 45,616 | 35,263 | |||||||||
Sales and other revenues | 29,810 | 22,682 | 29,855 | |||||||||
Total revenues | 209,512 | 184,284 | 161,575 | |||||||||
Depreciation of rental equipment | 21,001 | 19,246 | 16,536 | |||||||||
Gross profit | 93,816 | 78,771 | 63,455 | |||||||||
Selling and administrative expenses | 51,432 | 46,496 | 42,069 | |||||||||
Income (loss) from operations | 42,384 | 32,275 | 21,386 | |||||||||
Interest expense (income) allocation | (6,804) | (5,363) | 4,768 | |||||||||
Income before provision for income taxes | 35,580 | 26,912 | 16,959 | |||||||||
Rental equipment acquisitions | 43,099 | 79,622 | 82,792 | |||||||||
Accounts receivable, net (period end) | 55,916 | 53,550 | 55,916 | 53,550 | 46,659 | |||||||
Rental equipment, at cost (period end) | 769,190 | 736,875 | 769,190 | 736,875 | 664,340 | |||||||
Rental equipment, net book value (period end) | 544,421 | 529,483 | $ 544,421 | $ 529,483 | $ 473,960 | |||||||
Utilization (period end) | [1] | 77.30% | 76.90% | 75.00% | ||||||||
Average utilization | [1] | 76.60% | 75.80% | 72.30% | ||||||||
TRS-RenTelco [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Rental revenues | $ 82,307 | $ 89,208 | $ 99,020 | |||||||||
Rental related services revenues | 2,846 | 3,055 | 3,331 | |||||||||
Sales and other revenues | 23,464 | 22,754 | 25,951 | |||||||||
Total revenues | 108,617 | 115,017 | 128,302 | |||||||||
Depreciation of rental equipment | 35,256 | 39,974 | 40,935 | |||||||||
Gross profit | 45,797 | 47,836 | 60,249 | |||||||||
Selling and administrative expenses | 21,896 | 22,930 | 23,736 | |||||||||
Income (loss) from operations | 23,901 | 24,906 | 36,513 | |||||||||
Interest expense (income) allocation | (2,465) | (2,194) | 2,075 | |||||||||
Income before provision for income taxes | 21,315 | 22,224 | 34,383 | |||||||||
Rental equipment acquisitions | 30,505 | 44,316 | 45,158 | |||||||||
Accounts receivable, net (period end) | 19,506 | 21,784 | 19,506 | 21,784 | 28,849 | |||||||
Rental equipment, at cost (period end) | 246,325 | 262,945 | 246,325 | 262,945 | 261,995 | |||||||
Rental equipment, net book value (period end) | 90,172 | 102,191 | $ 90,172 | $ 102,191 | $ 105,729 | |||||||
Utilization (period end) | [1] | 61.00% | 58.70% | 59.80% | ||||||||
Average utilization | [1] | 60.60% | 60.50% | 60.40% | ||||||||
Adler Tanks [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Rental revenues | $ 58,585 | $ 68,502 | $ 74,098 | |||||||||
Rental related services revenues | 23,807 | 24,643 | 25,538 | |||||||||
Sales and other revenues | 1,438 | 1,486 | 1,152 | |||||||||
Total revenues | 83,830 | 94,631 | 100,788 | |||||||||
Depreciation of rental equipment | 15,940 | 15,993 | 15,207 | |||||||||
Gross profit | 37,409 | 47,397 | 53,452 | |||||||||
Selling and administrative expenses | 27,610 | 27,494 | 27,424 | |||||||||
Income (loss) from operations | 9,799 | 19,903 | 26,028 | |||||||||
Interest expense (income) allocation | (3,200) | (2,729) | 2,618 | |||||||||
Income before provision for income taxes | 6,599 | 17,174 | 23,605 | |||||||||
Rental equipment acquisitions | 1,030 | 9,440 | 20,652 | |||||||||
Accounts receivable, net (period end) | 16,150 | 17,955 | 16,150 | 17,955 | 21,031 | |||||||
Rental equipment, at cost (period end) | 308,542 | 310,263 | 308,542 | 310,263 | 303,303 | |||||||
Rental equipment, net book value (period end) | 221,778 | 237,927 | $ 221,778 | $ 237,927 | $ 246,061 | |||||||
Utilization (period end) | [1] | 50.70% | 49.70% | 63.90% | ||||||||
Average utilization | [1] | 50.10% | 58.30% | 62.90% | ||||||||
Enviroplex [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales and other revenues | [2] | $ 22,121 | $ 10,612 | $ 17,457 | ||||||||
Total revenues | [2] | 22,121 | 10,612 | 17,457 | ||||||||
Gross profit | [2] | 7,145 | 2,903 | 5,063 | ||||||||
Selling and administrative expenses | [2] | 3,970 | 3,030 | 3,630 | ||||||||
Income (loss) from operations | [2] | 3,175 | (127) | 1,433 | ||||||||
Interest expense (income) allocation | [2] | 262 | 194 | (181) | ||||||||
Income before provision for income taxes | [2] | 3,437 | 67 | 1,614 | ||||||||
Accounts receivable, net (period end) | [2] | $ 5,305 | $ 1,728 | $ 5,305 | $ 1,728 | $ 4,617 | ||||||
[1] | Utilization is calculated each month by dividing the cost of rental equipment on rent by the total cost of rental equipment excluding new equipment inventory and accessory equipment. The average utilization for the period is calculated using the average costs of rental equipment. | |||||||||||
[2] | Gross Enviroplex sales revenues were $22,206, $11,530 and $19,017 in 2016, 2015 and 2014, respectively, which includes inter-segment sales to Mobile Modular of $85, $918 and $1,560, which have been eliminated in consolidation. |
Segment Reporting - Summarize63
Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 105,283 | $ 121,993 | $ 103,105 | $ 93,699 | $ 105,282 | $ 113,048 | $ 96,026 | $ 90,188 | $ 424,080 | $ 404,544 | $ 408,122 | |
Enviroplex [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [1] | 22,121 | 10,612 | 17,457 | ||||||||
Mobile Modular [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 209,512 | 184,284 | 161,575 | |||||||||
Operating Segments [Member] | Enviroplex [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 22,206 | 11,530 | 19,017 | |||||||||
Inter-segment Eliminations [Member] | Mobile Modular [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales revenues | $ 85 | $ 918 | $ 1,560 | |||||||||
[1] | Gross Enviroplex sales revenues were $22,206, $11,530 and $19,017 in 2016, 2015 and 2014, respectively, which includes inter-segment sales to Mobile Modular of $85, $918 and $1,560, which have been eliminated in consolidation. |
Quarterly Financial Informati64
Quarterly Financial Information - Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operations Data | ||||||||||||
Rental revenues | $ 70,352 | $ 67,757 | $ 66,747 | $ 66,532 | $ 70,694 | $ 70,195 | $ 67,305 | $ 65,502 | $ 271,388 | $ 273,696 | $ 269,575 | |
Total revenues | 105,283 | 121,993 | 103,105 | 93,699 | 105,282 | 113,048 | 96,026 | 90,188 | 424,080 | 404,544 | 408,122 | |
Gross profit | 49,323 | 50,433 | 43,756 | 40,655 | 46,756 | 50,146 | 40,918 | 39,087 | 184,167 | 176,907 | 182,219 | |
Income from operations | 22,696 | 24,232 | 18,073 | 14,258 | 21,467 | 25,150 | 16,465 | 13,875 | 79,259 | 76,957 | 85,360 | |
Income before provision for income taxes | 19,795 | 21,277 | 15,006 | 10,853 | 18,523 | 22,505 | 14,033 | 11,316 | 66,931 | 66,377 | 76,561 | |
Net income | $ 9,734 | $ 12,872 | $ 9,079 | $ 6,566 | $ 11,518 | $ 13,616 | $ 8,490 | $ 6,846 | $ 38,251 | $ 40,470 | $ 45,709 | |
Earnings per share: | ||||||||||||
Basic | $ 0.41 | $ 0.54 | $ 0.38 | $ 0.28 | $ 0.48 | $ 0.54 | $ 0.33 | $ 0.26 | $ 1.60 | $ 1.60 | $ 1.77 | |
Diluted | 0.40 | 0.54 | 0.38 | 0.27 | 0.48 | 0.54 | 0.32 | 0.26 | 1.60 | 1.59 | 1.75 | |
Dividends declared per share | $ 0.255 | $ 0.255 | $ 0.255 | $ 0.255 | $ 0.250 | $ 0.250 | $ 0.250 | $ 0.250 | $ 1.02 | $ 1 | $ 0.98 | |
Shares used in per share calculations: | ||||||||||||
Basic | 23,927 | 23,911 | 23,900 | 23,862 | 23,932 | 25,334 | 26,142 | 26,091 | 23,900 | 25,369 | 25,914 | |
Diluted | 24,123 | 24,041 | 23,949 | 23,911 | 24,015 | 25,408 | 26,273 | 26,276 | 23,976 | 25,457 | 26,175 | |
Balance Sheet Data | ||||||||||||
Rental equipment, net | $ 856,371 | $ 862,528 | $ 868,422 | $ 867,215 | $ 869,601 | $ 864,277 | $ 856,489 | $ 839,078 | $ 856,371 | $ 869,601 | $ 825,750 | |
Total assets | 1,128,276 | 1,144,923 | 1,148,018 | 1,132,355 | 1,152,549 | 1,149,095 | 1,132,750 | 1,112,056 | 1,128,276 | 1,152,549 | ||
Notes payable | 326,266 | 345,286 | 363,121 | 365,772 | 381,281 | 382,113 | 337,177 | 320,923 | 326,266 | 381,281 | ||
Shareholders' equity | $ 394,287 | $ 390,600 | $ 383,313 | $ 380,512 | $ 379,687 | $ 389,464 | $ 426,823 | $ 425,848 | $ 394,287 | $ 379,687 | $ 424,531 | $ 401,030 |