Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2023 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2023 |
Entity Registrant Name | Textainer Group Holdings Limited |
Entity Central Index Key | 0001413159 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-33725 |
Entity Address, Address Line One | Century House |
Entity Address, Address Line Two | 16 Par-La-Ville Road |
Entity Address, City or Town | Hamilton |
Entity Address, Postal Zip Code | HM 08 |
Entity Address, Country | BM |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 153,738 | $ 164,818 |
Marketable securities | 1,411 | |
Accounts receivable, net of allowance of $1,633 and $1,582, respectively | 118,931 | 114,805 |
Net investment in finance leases, net of allowance of $191 and $252, respectively | 130,681 | 130,913 |
Container leaseback financing receivable, net of allowance of $48 and $62, respectively | 59,519 | 53,652 |
Trading containers | 6,651 | 4,848 |
Containers held for sale | 40,261 | 31,637 |
Prepaid expenses and other current assets | 8,100 | 16,703 |
Due from affiliates, net | 3,040 | 2,758 |
Total current assets | 520,921 | 521,545 |
Restricted cash | 102,336 | 102,591 |
Containers, net of accumulated depreciation of $2,092,858 and $2,029,667, respectively | 4,182,242 | 4,365,124 |
Net investment in finance leases, net of allowance of $701 and $1,027, respectively | 1,624,264 | 1,689,123 |
Container leaseback financing receivable, net of allowance of $15 and $52, respectively | 834,809 | 770,980 |
Derivative instruments | 146,994 | 149,244 |
Deferred taxes | 1,165 | 1,135 |
Other assets | 22,425 | 13,492 |
Total assets | 7,435,156 | 7,613,234 |
Current liabilities: | ||
Accounts payable and accrued expenses | 21,363 | 24,160 |
Container contracts payable | 72,618 | 6,648 |
Other liabilities | 5,667 | 5,060 |
Due to container investors, net | 14,879 | 16,132 |
Debt, net of unamortized costs of $7,607 and $7,938, respectively | 392,720 | 377,898 |
Total current liabilities | 507,247 | 429,898 |
Debt, net of unamortized costs of $22,619 and $26,946, respectively | 4,872,129 | 5,127,021 |
Derivative instruments | 475 | |
Income tax payable | 13,889 | 13,196 |
Deferred taxes | 16,055 | 13,105 |
Other liabilities | 31,578 | 33,725 |
Total liabilities | 5,441,373 | 5,616,945 |
Shareholders' Equity: | ||
Cumulative redeemable perpetual preferred shares, $0.01 par value, $25,000 liquidation preference per share. Authorized 10,000,000 shares; 12,000 shares issued and outstanding (equivalent to 12,000,000 depositary shares at $25.00 liquidation preference per depositary share) | 300,000 | 300,000 |
Common shares, $0.01 par value. Authorized 140,000,000 shares; 60,060,224 shares issued and 41,336,704 shares outstanding at June 30, 2023; 59,943,282 shares issued and 43,634,655 shares outstanding at December 31, 2022 | 601 | 599 |
Treasury shares, at cost, 18,723,520 and 16,308,627 shares, respectively | (421,656) | (337,551) |
Additional paid-in capital | 447,886 | 442,154 |
Accumulated other comprehensive income | 144,665 | 147,350 |
Retained earnings | 1,522,287 | 1,443,737 |
Total shareholders’ equity | 1,993,783 | 1,996,289 |
Total liabilities and shareholders' equity | $ 7,435,156 | $ 7,613,234 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 1,633 | $ 1,582 |
Net investment in finance leases, allowance current | 191 | 252 |
Container leaseback financing receivable, allowance current | 48 | 62 |
Containers, accumulated depreciation | 2,092,858 | 2,029,667 |
Net investment in finance leases, allowance non current | 701 | 1,027 |
Container leaseback financing receivable, allowance non current | 15 | 52 |
Debt, net of unamortized costs current | 22,619 | 26,946 |
Debt, net of unamortized costs non current | $ 7,607 | $ 7,938 |
Preferred stock shares, par value | $ 0.01 | $ 0.01 |
Preferred stock shares, liquidation preference per share | $ 25,000 | $ 25,000 |
Preferred stock shares, Authorized | 10,000,000 | 10,000,000 |
Preferred stock shares, issued | 12,000 | 12,000 |
Preferred stock shares, outstanding | 12,000 | 12,000 |
Depository shares issued | 12,000,000 | 12,000,000 |
Depositary per share equivalent to liquidation preference per share | $ 25 | $ 25 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, Authorized | 140,000,000 | 140,000,000 |
Common shares, issued | 60,060,224 | 59,943,282 |
Common shares, outstanding | 41,336,704 | 43,634,655 |
Treasury shares, at cost, shares | 18,723,520 | 16,308,627 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Revenues: | |||||
Total lease rental income | $ 192,163 | $ 203,232 | $ 387,064 | $ 401,950 | |
Management fees - non-leasing | 710 | 673 | 1,454 | 1,205 | |
Trading container margin | 199 | 447 | 44 | 1,309 | |
Gain on sale of owned fleet containers, net | 7,703 | 23,213 | 17,251 | 39,126 | |
Operating expenses: | |||||
Depreciation and amortization | 70,527 | 72,957 | 142,365 | 145,450 | |
General and administrative expense | 12,752 | 13,185 | 25,871 | 24,712 | |
Bad debt (recovery) expense, net | (100) | 60 | (405) | 537 | |
Container lessee default expense, net | 12 | 435 | 51 | 555 | |
Total operating expenses | 103,097 | 104,718 | 207,756 | 206,027 | |
Income from operations | 97,678 | 122,847 | 198,057 | 237,563 | |
Other (expense) income: | |||||
Interest expense | (42,138) | (37,593) | (84,268) | (72,902) | |
Other, net | [1] | 2,107 | 352 | 3,929 | 258 |
Net other expense | (40,031) | (37,241) | (80,339) | (72,644) | |
Income before income taxes | 57,647 | 85,606 | 117,718 | 164,919 | |
Income tax expense | (1,346) | (2,047) | (2,822) | (3,686) | |
Net income | 56,301 | 83,559 | 114,896 | 161,233 | |
Less: Dividends on preferred shares | 4,969 | 4,969 | 9,938 | 9,938 | |
Net income attributable to common shareholders | $ 51,332 | $ 78,590 | $ 104,958 | $ 151,295 | |
Net income attributable to common shareholders per share: | |||||
Basic | $ 1.22 | $ 1.66 | $ 2.47 | $ 3.16 | |
Diluted | $ 1.20 | $ 1.63 | $ 2.42 | $ 3.10 | |
Weighted average shares outstanding (in thousands): | |||||
Basic | 41,963 | 47,486 | 42,536 | 47,942 | |
Diluted | 42,862 | 48,305 | 43,365 | 48,799 | |
Operating Leases - Owned Fleet | |||||
Revenues: | |||||
Total lease rental income | $ 143,484 | $ 152,590 | $ 288,808 | $ 304,082 | |
Operating Leases - Managed Fleet | |||||
Revenues: | |||||
Total lease rental income | 10,693 | 12,678 | 21,803 | 25,319 | |
Finance leases and container leaseback financing receivable - owned fleet | |||||
Revenues: | |||||
Total lease rental income | 37,986 | 37,964 | 76,453 | 72,549 | |
Trading Containers | |||||
Revenues: | |||||
Revenue | 4,849 | 5,392 | 8,815 | 13,010 | |
Cost of trading containers sold | (4,650) | (4,945) | (8,771) | (11,701) | |
Owned Fleet | |||||
Operating expenses: | |||||
Direct container expense - owned fleet | 10,399 | 6,779 | 20,442 | 12,298 | |
Managed Fleet | |||||
Operating expenses: | |||||
Distribution expense to managed fleet container investors | $ 9,507 | $ 11,302 | $ 19,432 | $ 22,475 | |
[1] Amounts for the period ended June 30, 2022 have been reclassified to conform with the 2023 presentation (see Note 2 (f) “Reclassifications and Changes in Presentation”). |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net income | $ 56,301 | $ 83,559 | $ 114,896 | $ 161,233 |
Other comprehensive income (loss), before tax: | ||||
Change in derivative instruments designated as cash flow hedges | 45,823 | 29,720 | 32,239 | 89,100 |
Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges | (18,570) | 1,004 | (34,964) | 4,295 |
Foreign currency translation adjustments | (53) | (180) | 13 | (236) |
Comprehensive income, before tax | 83,501 | 114,103 | 112,184 | 254,392 |
Income tax (expense) benefit related to items of other comprehensive income | (272) | (355) | 27 | (922) |
Comprehensive income, after tax | 83,229 | 113,748 | 112,211 | 253,470 |
Less: Dividends on preferred shares | 4,969 | 4,969 | 9,938 | 9,938 |
Comprehensive income attributable to common shareholders | $ 78,260 | $ 108,779 | $ 102,273 | $ 243,532 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Preferred shares | Common shares | Treasury shares | Additional Paid-in capital | Accumulated other comprehensive income | Retained earnings |
Beginning Balances at Dec. 31, 2021 | $ 1,781,254 | $ 300,000 | $ 595 | $ (158,459) | $ 428,945 | $ 9,750 | $ 1,200,423 |
Beginning Balances (in shares) at Dec. 31, 2021 | 12,000 | 59,503,710 | (10,671,855) | ||||
Restricted share units vested (in shares) | 34,047 | ||||||
Exercise of share options | 3,979 | $ 2 | 3,977 | ||||
Exercise of share options (in shares) | 148,704 | ||||||
Purchase of treasury shares | $ (81,603) | $ (81,603) | |||||
Purchase of treasury shares (in shares) | (2,375,508) | (2,375,508) | |||||
Share-based compensation expense | $ 3,498 | 3,498 | |||||
Preferred shares dividends declared | (9,938) | (9,938) | |||||
Dividends declared to common shareholders | (23,858) | (23,858) | |||||
Net income | 161,233 | 161,233 | |||||
Comprehensive income (loss): | |||||||
Change in derivative instruments designated as cash flow hedges | 89,100 | 89,100 | |||||
Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges | 4,295 | 4,295 | |||||
Foreign currency translation adjustments | (236) | (236) | |||||
Income tax benefit (expense) related to items of other comprehensive income (loss) | (922) | (922) | |||||
Total comprehensive income (loss) | 92,237 | ||||||
Ending Balances at Jun. 30, 2022 | 1,926,802 | $ 300,000 | $ 597 | $ (240,062) | 436,420 | 101,987 | 1,327,860 |
Ending Balances (in shares) at Jun. 30, 2022 | 12,000 | 59,686,461 | (13,047,363) | ||||
Beginning Balances at Dec. 31, 2022 | 1,996,289 | $ 300,000 | $ 599 | $ (337,551) | 442,154 | 147,350 | 1,443,737 |
Beginning Balances (in shares) at Dec. 31, 2022 | 12,000 | 59,943,282 | (16,308,627) | ||||
Restricted share units vested (in shares) | 34,362 | ||||||
Exercise of share options | 1,183 | $ 2 | 1,181 | ||||
Exercise of share options (in shares) | 82,580 | ||||||
Purchase of treasury shares | $ (84,105) | $ (84,105) | |||||
Purchase of treasury shares (in shares) | (2,414,893) | (2,414,893) | |||||
Share-based compensation expense | $ 4,551 | 4,551 | |||||
Preferred shares dividends declared | (9,938) | (9,938) | |||||
Dividends declared to common shareholders | (26,408) | (26,408) | |||||
Net income | 114,896 | 114,896 | |||||
Comprehensive income (loss): | |||||||
Change in derivative instruments designated as cash flow hedges | 32,239 | 32,239 | |||||
Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges | (34,964) | (34,964) | |||||
Foreign currency translation adjustments | 13 | 13 | |||||
Income tax benefit (expense) related to items of other comprehensive income (loss) | 27 | 27 | |||||
Total comprehensive income (loss) | (2,685) | ||||||
Ending Balances at Jun. 30, 2023 | $ 1,993,783 | $ 300,000 | $ 601 | $ (421,656) | $ 447,886 | $ 144,665 | $ 1,522,287 |
Ending Balances (in shares) at Jun. 30, 2023 | 12,000 | 60,060,224 | (18,723,520) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
Cash flows from operating activities: | |||
Net income | $ 114,896 | $ 161,233 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 142,365 | 145,450 | |
Bad debt (recovery) expense, net | (405) | 537 | |
Container write-off from lessee default, net | 241 | ||
Amortization of unamortized debt issuance costs and accretion of bond discounts | 4,659 | 5,206 | |
Gain on sale of owned fleet containers, net | (17,251) | (39,126) | |
Share-based compensation expense | 4,551 | 3,498 | |
Changes in operating assets and liabilities | [1] | 59,975 | 107,190 |
Total adjustments | 193,894 | 222,996 | |
Net cash provided by operating activities | 308,790 | 384,229 | |
Cash flows from investing activities: | |||
Purchase of containers | (32,015) | (254,963) | |
Payments on container leaseback financing receivable | (37,193) | (468,252) | |
Proceeds from sale of containers | 85,402 | 91,292 | |
Receipt of principal payments on container leaseback financing receivable | 27,062 | 30,098 | |
Other | [1] | 3 | (2,119) |
Net cash provided by (used in) investing activities | 43,259 | (603,944) | |
Cash flows from financing activities: | |||
Proceeds from debt | 57,000 | 844,650 | |
Payments on debt | (301,729) | (483,313) | |
Principal repayments on container leaseback financing liability, net | (410) | (398) | |
Purchase of treasury shares | (84,105) | (81,603) | |
Issuance of common shares upon exercise of share options | 1,183 | 3,979 | |
Dividends paid on common shares | (25,398) | (23,858) | |
Dividends paid on preferred shares | (9,938) | (9,938) | |
Net cash (used in) provided by financing activities | (363,397) | 249,519 | |
Effect of exchange rate changes | 13 | (236) | |
Net change in cash, cash equivalents and restricted cash | (11,335) | 29,568 | |
Cash, cash equivalents and restricted cash, beginning of the year | 267,409 | 282,572 | |
Cash, cash equivalents and restricted cash, end of the period | 256,074 | 312,140 | |
Supplemental disclosures of cash flow information: | |||
Interest paid | 79,020 | 66,344 | |
Income taxes paid | 239 | 140 | |
Receipt of payments on finance leases, net of income earned | 67,562 | 95,712 | |
Supplemental disclosures of noncash investing activities: | |||
Increase in accrued container purchases | 65,970 | 3,604 | |
Containers placed in finance leases | $ 1,225 | $ 169,620 | |
[1] Amounts for the period ended June 30, 2022 have been reclassified to conform with the 2023 presentation (see Note 2 (f) “Reclassifications and Changes in Presentation”). |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2023 | |
Nature Of Business [Abstract] | |
Nature of Business | (1) Nature of Business Textainer Group Holdings Limited (“TGH”) is incorporated in Bermuda. TGH is the holding company of a group of companies, consisting of TGH and its subsidiaries (collectively, the “Company”), involved in the purchase, management, leasing and resale of a fleet of marine cargo containers. The Company also manages and provides administrative support to the third-party owners’ (the “Container Investors”) container fleets. The Company conducts its business activities in three main segments: Container Ownership, Container Management and Container Resale (see Note 9 “Segment Information”). |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | (2) Basis of Presentation and Accounting Policies (a) Basis of Presentation and Consolidation Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2022 (“2022 Form 20-F”) filed with the Securities and Exchange Commission on February 14, 2023. The condensed consolidated financial statements of the Company include TGH and all of its wholly-owned subsidiaries. All intercompany accounts and balances have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosure of contingent assets and liabilities in the condensed consolidated financial statements. The Company’s management evaluates its estimates on an ongoing basis, including those related to container leasing equipment such as residual values and depreciable lives, containers held for sale, allowance for credit losses, income taxes and accruals. Actual results could differ from those estimates under different assumptions or conditions. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal and recurring adjustments) necessary to present fairly the Company’s condensed consolidated balance sheet as of June 30, 2023, the Company’s condensed consolidated statements of operations and comprehensive income for the three and six month periods ended June 30, 2023 and 2022, and the Company’s condensed consolidated statements of shareholders’ equity and cash flows for the six month periods ended June 30, 2023 and 2022. These condensed consolidated financial statements are not necessarily indicative of the results of operations or cash flows that may be reported for the remainder of the fiscal year ending December 31, 2023. (b) Concentration of Credit Risk The Company’s customers are mainly international shipping lines, which transport goods on international trade routes. Once the containers are on-hire with a lessee, the Company does not track their location. The domicile of the lessee is not indicative of where the lessee is transporting the containers. The Company’s business risk in its geographic concentration lies with the creditworthiness of the lessees rather than the location of the containers or the domicile of the lessees. Total lease rental income, as reported in the condensed consolidated statements of operations, comprises revenue earned from leases on containers in the Company’s total fleet, including revenue earned from leases on containers in its managed fleet. Except for the lessees noted in the tables below, no other single lessee accounted for more than 10% of the Company’s total lease rental income for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended June 30, June 30, Total Lease Rental Income 2023 2022 2023 2022 Customer A 25.5 % 24.5 % 25.5 % 24.0 % Customer B 11.8 % 15.6 % 11.7 % 15.1 % Customer C 10.9 % 10.7 % 10.8 % 10.8 % Customer D 4.6 % 13.5 % 4.7 % 11.3 % Other financial instruments that are exposed to concentrations of credit risk are cash and cash equivalents, restricted cash balances, and derivatives (see Note 8 “Debt and Derivative Instruments” for further discussions). The Company maintains cash and cash equivalents and restricted cash accounts with various financial institutions, which often exceed Federal Deposit Insurance Corporation (FDIC) or foreign equivalents insurance limits. The Company has not experienced any losses in such accounts with these financial institutions. The Company does not anticipate any non-performance by the financial institutions or derivative counterparties as they are highly rated financial institutions. (c) Container Leasing Equipment Capitalized costs for container leasing equipment include the container cost payable to the manufacturer, inspection, delivery, and the associated transportation costs incurred in moving the Company’s containers from the manufacturer to the containers’ first destined location. Container leasing equipment are depreciated using the straight-line method over their estimated useful lives to an estimated residual value. Used containers are depreciated based upon their remaining useful lives at the date of acquisition to an estimated residual value. Repair and maintenance costs that do not extend the useful lives of the container leasing equipment are recognized in “direct container expense - owned fleet” in the condensed consolidated statements of operations at the time the costs are incurred. Impairment of Container Leasing Equipment The Company reviews its container leasing equipment for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The Company compares the carrying value of the container leasing equipment to the expected future undiscounted cash flows for the purpose of assessing the recoverability of the recorded amounts. If the carrying value exceeds expected future undiscounted cash flows, the assets are reduced to fair value. There was no such impairment of the Company’s container leasing equipment for the three and six months ended June 30, 2023 and 2022. Write-Off (Recoveries) of Container Leasing Equipment due to Lessees in Default The Company evaluates the recoverability of the recorded amounts of container leasing equipment that are unlikely to be recovered from lessees in default. There was no such impairment of the Company’s container leasing equipment that are unlikely to be recovered from lessees in default for the three and six months ended June 30, 2023. For the three and six months ended June 30, 2022, the Company recorded impairment charges of $ 1,068 to write-off containers that were unlikely to be recovered from lessees in default, offset by gains of $ 827 associated with recoveries on containers previously estimated as lost with lessees in default. These amounts are included in “container lessee default expense, net” in the condensed consolidated statements of operations. (d) Containers Held for Sale Containers identified as held for sale are valued at the lower of carrying value or fair value, less costs to sell. The Company records impairment to write-down the value of containers held for sale to their estimated fair value, less cost to sell, under observable (Level 2) market inputs. The fair value is estimated based on recent gross sales proceeds for sales of similar types of containers in the locations in which the containers are stored. When containers are sold or otherwise retired, the cost and related accumulated depreciation are removed, and any resulting gain or loss is recognized. Subsequent additions or reductions to the fair values of these written down assets are recorded as adjustments to the carrying value of the containers held for sale. The carrying value of containers held for sale that have been impaired and written down to their estimated fair value less cost to sell was $ 4,365 and $ 3,556 as of June 30, 2023 and December 31, 2022, respectively. Any subsequent increase in fair value less costs to sell is recognized as a reversal of container impairment but not in excess of the cumulative loss previously recognized. During the three and six months ended June 30, 2023, the Company recorded container impairment charges of $ 66 and $ 1,811 , respectively, and during the three and six months ended June 30, 2022, the Company recorded container impairment charges of $ 253 and $ 603 , respectively, to write down the value of containers held for sale to their estimated fair value less cost to sell, net of reversals of previously recorded impairments on containers held for sale due to rising used container prices. The impairment charges are included in “depreciation and amortization” in the condensed consolidated statements of operations. (e) Fair Value Measurements As of June 30, 2023 and December 31, 2022, the carrying amounts of cash and cash equivalents, restricted cash, accounts receivable and payable, due from affiliates, net, container contracts payable and due to container investors, net, approximate their fair values due to the short-term nature of these financial instruments. See Note 2 (d) “Containers Held for Sale”, Note 5 “Leases” and Note 8 “Debt and Derivative Instruments” for further discussions on fair value of containers held for sale, fair value of net investment in finance leases and container leaseback financing receivable, and fair value of derivative instruments, respectively. As of June 30, 2023, the Company did no t hold any investments in marketable equity securities. As of December 31, 2022, the Company held investments in marketable equity securities with readily determinable fair values of $ 1,411 . The fair value of investments in marketable equity securities was measured at each balance sheet date based on quoted market prices (Level 1), with changes in fair value recorded in earnings as “other, net” in the condensed consolidated statements of operations. (f) Reclassifications and Changes in Presentation Certain prior period amounts for the three and six months ended June 30, 2022 have been reclassified to conform to the current period presentation. The reclassifications as discussed below have no effect on previously reported net income and net change in cash, cash equivalents, and restricted cash. • The Company reclassified the amounts out of the separate line items “realized gain (loss) on financial instruments, net” and “unrealized gain (loss) on financial instruments, net” to be included within the line item “other, net” and “changes in operating assets and liabilities” in the condensed consolidated statements of operations and in the condensed consolidated statements of cash flows, respectively. • The Company reclassified the fixed asset purchase amounts out of the previously reported line item “purchase of containers and fixed assets” to be included to the separate line item “other” in the condensed consolidated statements of cash flows. (g) Recently Issued Accounting Standards In March 2022, the FASB issued Accounting Standards Update No. 2022-02, Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). The amendment eliminates the accounting guidance for troubled debt restructurings by creditors in Topic 310 - Receivables and amends the disclosure requirements for restructurings involving borrowers that are experiencing financial difficulty under ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments , which was adopted by the Company on the effective date of January 1, 2020. ASU 2022-02 requires disclosure of current period gross write-offs by year of origination for financing receivables and net investment in finance leases and must be included in the vintage disclosure of the amortized cost basis of financing receivables and net investment in finance leases by credit quality indicator and by year of origination as required by ASU 2016-13. The Company adopted ASU 2022-02 effective January 1, 2023 on a prospective basis and the adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements. There were no changes to the Company’s significant accounting policies during the three and six months ended June 30, 2023. For further discussion on the Company’s accounting policies, please refer to Note 1 “Nature of Business and Summary of Significant Accounting Polices” in Item 18, “Financial Statements” in our 2022 Form 20-F. |
Managed Container Fleet
Managed Container Fleet | 6 Months Ended |
Jun. 30, 2023 | |
Revenue From Contract With Customer [Abstract] | |
Managed Container Fleet | (3) Managed Container Fleet Under the Company’s management agreements for managed container fleet, the Company is responsible for providing the leasing services to the customers and responsible for directing and integrating third-party vendors to fulfill its performance obligations. Therefore, it was determined that the management agreements with these Container Investors are deemed to convey to the Company the right to control the use of the managed containers and are therefore accounted for as a lease. Lease rental income and expenses from the managed fleet owned by Container Investors are reported on a gross basis. Lease rental income from managed fleet represents rental charges billed to the ultimate lessees for the managed fleet, including charges for handling fees, drop-off charges, pick-up charges, and charges for a damage protection plan that is set forth in the leases. Management fees from non-leasing services are earned for acquiring new managed containers and sales commissions are earned from sales of the managed containers on behalf of the Container Investors. Distribution expense to managed fleet container investors represents direct container expenses of the managed containers and the amounts distributed to the Container Investors, reduced by associated lease management fees earned and retained by the Company. The Company is deemed to own certain of the managed containers purchased by the Company on behalf of Container Investors, notwithstanding the contractual management relationship which the Company has with the Container Investors. Accordingly, such managed containers are included in “containers, net” in the Company’s condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022. The purchase consideration paid by the Container Investors for such containers is reported as a deemed financial liability of the Company. As of June 30, 2023 and December 31, 2022, the Company’s container leaseback financial liability to the Container Investors amounted to $ 14,425 , and $ 14,841 , respectively, which were reported as “other liabilities” in the condensed consolidated balance sheets. The Company’s container leasing equipment includes such managed containers in the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022, which consisted of the following: June 30, 2023 December 31, 2022 Cost Accumulated Net Book Cost Accumulated Net Book Containers - owned fleet $ 6,258,690 $ ( 2,090,449 ) $ 4,168,241 $ 6,378,374 $ ( 2,027,743 ) $ 4,350,631 Containers - managed fleet 16,410 ( 2,409 ) 14,001 16,417 ( 1,924 ) 14,493 Total containers $ 6,275,100 $ ( 2,092,858 ) $ 4,182,242 $ 6,394,791 $ ( 2,029,667 ) $ 4,365,124 Income from the managed fleet, including management fees earned from acquisition fees and sales commissions during the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Lease rental income - managed fleet $ 10,693 $ 12,678 $ 21,803 $ 25,319 Less: distribution expense to managed fleet container ( 9,507 ) ( 11,302 ) ( 19,432 ) ( 22,475 ) Less: depreciation and interest expense on managed ( 447 ) ( 458 ) ( 890 ) ( 911 ) 739 918 1,481 1,933 Management fees from non-leasing services 710 673 1,454 1,205 Total $ 1,449 $ 1,591 $ 2,935 $ 3,138 The following table provides a reconciliation of the balance sheet accounts from the managed fleet to the total amount as of June 30, 2023 and December 31, 2022 in the condensed consolidated balance sheets (also, see Note 4 “Transactions with Affiliates and Container Investors”): June 30, 2023 December 31, 2022 Accounts receivable, net - owned fleet $ 111,519 $ 107,457 Accounts receivable, net - managed fleet 7,412 7,348 Total accounts receivable, net $ 118,931 $ 114,805 Prepaid expenses and other current assets - owned fleet $ 8,043 $ 16,614 Prepaid expenses and other current assets - managed fleet 57 89 Total prepaid expenses and other current assets $ 8,100 $ 16,703 Accounts payable and accrued expenses - owned fleet $ 20,432 $ 22,868 Accounts payable and accrued expenses - managed fleet 931 1,292 Total accounts payable and accrued expenses $ 21,363 $ 24,160 Container contracts payable - owned fleet $ 72,618 $ 6,648 Total container contracts payable $ 72,618 $ 6,648 For further discussion on the Company’s managed container fleet, please refer to Item 18, “Financial Statements – Note 2” in our 2022 Form 20-F. |
Transactions with Affiliates an
Transactions with Affiliates and Container Investors | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates and Container Investors | (4) Transactions with Affiliates and Container Investors Due from affiliates, net of $ 3,040 and $ 2,758 , as of June 30, 2023 and December 31, 2022, respectively, represents lease rentals on tank containers collected on behalf of and payable to the Company from the Company’s tank container manager, net of direct container expenses and management fees. See Note 3 “Managed Fleet” for further detail on management fees earned from the Company’s managed fleet. There were no due to affiliated Container Investors as of June 30, 2023 and December 31, 2022. The following table provides a summary of due to container investors, net at June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Accounts receivable, net - managed fleet $ 7,412 $ 7,348 Prepaid expenses and other current assets - managed fleet 57 89 Accounts payable and accrued expenses - managed fleet ( 931 ) ( 1,292 ) 6,538 6,145 Distributions due to container investors on lease rentals collected, net of 8,341 9,987 Due to container investors, net $ 14,879 $ 16,132 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | (5) Leases (a) Lessor The Company’s lease rental income for the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended June 30, 2023 2022 Owned Managed Total Owned Managed Total Lease rental income - operating leases $ 140,050 $ 10,157 $ 150,207 $ 149,493 $ 12,345 $ 161,838 Interest income on net investment in finance leases 26,025 — 26,025 27,102 — 27,102 Interest income on container leaseback financing 11,827 — 11,827 10,733 — 10,733 Variable lease revenue 3,568 536 4,104 3,226 333 3,559 Total lease rental income $ 181,470 $ 10,693 $ 192,163 $ 190,554 $ 12,678 $ 203,232 Six Months Ended June 30, 2023 2022 Owned Managed Total Owned Managed Total Lease rental income - operating leases $ 281,128 $ 20,531 $ 301,659 $ 298,324 $ 24,701 $ 323,025 Interest income on net investment in finance leases 52,512 — 52,512 54,560 — 54,560 Interest income on container leaseback financing 23,665 — 23,665 17,752 — 17,752 Variable lease revenue 7,956 1,272 9,228 5,995 618 6,613 Total lease rental income $ 365,261 $ 21,803 $ 387,064 $ 376,631 $ 25,319 $ 401,950 Variable lease revenue includes other charges set forth in the leases, such as handling fees, pick-up and drop-off charges and charges for damage protection plan. For finance leases, the net selling gain (loss) recognized at lease commencement, representing the difference between the estimated fair value of containers placed on these leases and their net book value, in the amount of $ 20 and $ 1,172 for the three months ended June 30, 2023 and 2022, respectively, and $( 125 ) and $ 1,172 for the six months ended June 30, 2023 and 2022, respectively, were included in “gain on sale of owned fleet containers, net” in the condensed consolidated statements of operations. Net Investment in Finance Leases The following table represents the components of the net investment in finance leases as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Future minimum lease payments receivable $ 2,370,152 $ 2,487,365 Residual value of containers 47,010 47,686 Less: unearned income ( 661,325 ) ( 713,736 ) Net investment in finance leases (1) 1,755,837 1,821,315 Less: Allowance for credit losses ( 892 ) ( 1,279 ) Net investment in finance leases, net (2) $ 1,754,945 $ 1,820,036 Amounts due within one year 130,681 130,913 Amounts due beyond one year 1,624,264 1,689,123 Net investment in finance leases, net $ 1,754,945 $ 1,820,036 (1) One major customer represented 81.5 % and 80.8 % of the Company’s finance leases portfolio as of June 30, 2023 and December 31, 2022, respectively. No other customer represented more than 10% of the Company’s finance leases portfolio in each of those periods. (2) As of June 30, 2023 and December 31, 2022, the fair value of net investment in finance leases (including the short-term balance) was approximately $ 1,576,494 and $ 1,659,155 , respectively, and was measured using Level 2 inputs. Container Leaseback Financing Receivable The Company’s container leaseback financing receivable pertains to containers purchased that were leased back to the seller-lessees through a sales-type leaseback arrangement that are accounted for as financing transactions. The following table represents the components of the container leaseback financing receivable as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Future minimum payments receivable $ 1,295,692 $ 1,179,515 Less: unearned income ( 401,301 ) ( 354,769 ) Container leaseback financing receivable (1) 894,391 824,746 Less: Allowance for credit losses ( 63 ) ( 114 ) Container leaseback financing receivable, net (2) $ 894,328 $ 824,632 Amounts due within one year 59,519 53,652 Amounts due beyond one year 834,809 770,980 Container leaseback financing receivable, net $ 894,328 $ 824,632 (1) One major customer represented 98.2 % and 97.4 % of the Company’s container leaseback financing receivable portfolio as of June 30, 2023 and December 31, 2022, respectively. (2) As of June 30, 2023 and December 31, 2022, the fair value of container leaseback financing receivable (including the short-term balance) was approximately $ 769,422 and $ 732,951 , respectively, and was measured using Level 2 inputs. (b) Lessee Right-of-use (“ROU”) lease assets and lease liabilities are recognized for the Company’s office space leases at the commencement date based on the present value of lease payments over the lease term. As of June 30, 2023 and December 31, 2022, ROU operating lease assets amounted to $ 6,443 and $ 7,299 , respectively, which were reported in “other assets” in the condensed consolidated balance sheets. As of June 30, 2023 and December 31, 2022, total lease liabilities amounted to $ 8,096 and $ 9,112 , respectively, which were reported in “other liabilities” in the condensed consolidated balance sheets. Operating lease expense amounted to $ 588 and $ 578 for the three months ended June 30, 2023 and 2022, respectively, and $ 1,174 and $ 1,150 for the six months ended June 30, 2023 and 2022, respectively. |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2023 | |
Allowance For Credit Loss [Abstract] | |
Allowance for Credit Losses | (6) Allowance for Credit Losses The Company’s allowance for credit losses is estimated based on historical losses from lessee defaults, current economic conditions, reasonable and supportable forecasts and ongoing review of the credit worthiness, but not limited to, each lessee’s payment history, lessee credit ratings, management’s current assessment of each lessee’s financial condition and the recoverability. Accounts Receivable The allowance for credit losses included in accounts receivable, net, amounted to $ 1,633 and $ 1,582 as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023 and December 31, 2022, the allowance for credit losses related to the billed amounts under the container leaseback financing receivable and finance leases were included in accounts receivable, net, amounted to $ 660 and $ 586 , respectively. Net Investment in Finance Leases and Container Leaseback Financing Receivable The allowance for credit losses related to unbilled amounts under finance leases and included in net investment in finance leases, net, amounted to $ 892 and $ 1,279 as of June 30, 2023 and December 31, 2022, respectively. The allowance for credit losses related to unbilled amounts under the financing arrangements and included in container leaseback financing receivable, net, amounted to $ 63 and $ 114 as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023, the Company’s net investment in finance leases and container leaseback financing receivable are primarily comprised of the largest shipping lines under “Tier 1” risk rating which represented 88.9 % and 98.2 %, respectively, of the Company’s portfolio (For further discussion on the description of the Company’s internal risk ratings, please refer to Item 18, “Financial Statements – Note 1” in our 2022 Form 20-F). The following table presents the net investment in finance leases and container leaseback financing receivable by internal credit rating category and year of origination as of June 30, 2023: Six Months Ended June 30, 2023 2022 2021 2020 2019 Prior Total Tier 1 $ — $ 94,163 $ 787,204 $ 550,235 $ 94,507 $ 35,473 $ 1,561,582 Tier 2 86 26,975 72,209 30,747 27,288 15,023 172,328 Tier 3 984 8,194 5,733 1,569 5,229 218 21,927 Net investment in finance $ 1,070 $ 129,332 $ 865,146 $ 582,551 $ 127,024 $ 50,714 $ 1,755,837 Tier 1 $ 96,064 $ 493,971 $ 11,148 $ 97,690 $ 179,603 $ — $ 878,476 Tier 2 — — 3,408 — 12,507 — 15,915 Container leaseback financing $ 96,064 $ 493,971 $ 14,556 $ 97,690 $ 192,110 $ — $ 894,391 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) Income Taxes The Company’s effective income tax rates were 2.3 % and 2.4 % for the three months ended June 30, 2023 and 2022, respectively, and 2.4 % and 2.2 % for the six months ended June 30, 2023 and 2022, respectively. The Company has computed its provision for income taxes based on the estimated annual effective income tax rate and is affected by recurring items, such as tax rates in foreign jurisdictions and the relative amounts of income the Company earns in those jurisdictions. It is also affected by the changes in discrete items that may occur in any given period. The increase in the effective income tax rate for the six months ended June 30, 2023 compared to the same period of 2022 was primarily due to a decrease in the portion of the Company’ s income generated in lower tax jurisdictions. |
Debt and Derivative Instruments
Debt and Derivative Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Derivative Instruments | (8) Debt and Derivative Instruments Debt The following represents the Company’s debt obligations as of June 30, 2023 and December 31, 2022: Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable June 30, 2023 December 31, 2022 Outstanding Average Interest Outstanding Average Interest Final Maturity TL Revolving Credit Facility $ 1,309,858 6.53 % $ 1,367,858 5.78 % August 2027 TL 2019 Term Loan 121,503 3.50 % 127,293 3.50 % December 2026 TL 2021-1 Term loan 57,515 2.65 % 60,314 2.65 % February 2028 TL 2021-2 Term Loan 184,825 2.90 % 192,202 2.90 % October 2028 TMCL II Secured Debt Facility (1) 1,206,041 6.75 % 1,239,440 6.00 % November 2028 TMCL VII 2020-1 Bonds 306,577 3.06 % 332,413 3.06 % August 2045 TMCL VII 2020-2 Bonds 446,788 2.26 % 476,279 2.26 % September 2045 TMCL VII 2020-3 Bonds 165,695 2.15 % 175,750 2.15 % September 2045 TMCL VII 2021-1 Bonds 445,948 1.72 % 467,881 1.72 % February 2046 TMCL VII 2021-2 Bonds 538,325 2.27 % 564,373 2.27 % April 2046 TMCL VII 2021-3 Bonds 512,000 1.98 % 536,000 1.98 % August 2046 Total debt obligations (2) $ 5,295,075 $ 5,539,803 Unamortized debt premiums and discounts $ ( 30,226 ) $ ( 34,884 ) Debt, net of unamortized costs $ 5,264,849 $ 5,504,919 Debt, net of unamortized costs - current $ 392,720 $ 377,898 Debt, net of unamortized costs - non-current $ 4,872,129 $ 5,127,021 (1) Final maturity of the TMCL II Secured Debt Facility is based on the assumption that the facility will not be extended on its associated conversion date. (2) The fair value of total debt based on the borrowing rates available to the Company was approximately $ 4,859,159 and $ 5,107,874 at June 30, 2023 and December 31, 2022, respectively, and was measured using Level 2 inputs. The Company hedges the risks associated with fluctuations in interest rates on a portion of its floating-rate debt by entering into interest rate swap agreements that convert a portion of its floating-rate debt to a fixed rate basis, thereby reducing the impact of interest rate changes on future interest expense. The following table summarizes the Company’s outstanding fixed-rate and floating-rate debt as of June 30, 2023: Balance Outstanding Contractual Weighted Average Interest Rate Excluding impact of derivative instruments: Fixed-rate debt $ 2,779,176 2.31 % Floating-rate debt 2,515,899 6.63 % Including impact of derivative instruments: Fixed-rate debt 2,779,176 2.31 % Hedged floating-rate debt 2,084,869 3.16 % Total fixed and hedged debt 4,864,045 2.67 % Unhedged floating-rate debt 431,030 6.57 % Total $ 5,295,075 2.99 % The Company’s debt facilities are secured by specific pools of containers and related assets owned by the Company. The Company’s debt agreements contain various restrictive financial and other covenants related to leverage, interest coverage, fixed charge coverage, container sales proceeds ratio, net income and debt levels and consolidated tangible net worth, including limitations on certain liens, indebtedness and investments. TL’s revolving credit facility and term loans also contain limitations on loan and dividend payments to TGH. The Company was in full compliance with these restrictive covenants at June 30, 2023. As of June 30, 2023, the Company’s total commitment and outstanding borrowing, excluding unamortized debt costs, for the debt facilities amounted to $ 6,179,176 and $ 5,295,075 , respectively. The Company’s debt facilities also contain borrowing base minimums that limit borrowing capacity. As of June 30, 2023, the amount in excess of the current borrowing base minimums was $ 351,765 . For further discussion on the Company’s debt instruments, please refer to Item 18, “Financial Statements – Note 7” in our 2022 Form 20-F. Derivative Instruments and Hedging Activities The Company has entered into several derivative agreements with several banks to reduce the impact of changes in interest rates associated with its variable rate debt. Interest rate swap agreements involve payments by the Company to counterparties at fixed rate interest payments in return for receipts based on floating-rate amounts. The Company has also utilized forward starting interest rate swap agreements to reduce the impact of interest rate changes on anticipated future debt issuances. The Company has also utilized interest rate cap agreements, which place a ceiling on the Company’s exposure to rising interest rates, to manage interest rate risk exposure. The Company has utilized the income approach to measure at each balance sheet date the fair value of its derivative instruments on a recurring basis using observable (Level 2) market inputs. The Company presents the fair value of derivative instruments, which are inclusive of counterparty risk, on a gross basis as separate line items on the condensed consolidated balance sheets. The Company monitors its counterparties’ credit ratings on an on-going basis and does not anticipate any non-performance by the counterparties as they are highly rated financial institutions. As of June 30, 2023 and December 31, 2022, all of the Company’s interest rate swap agreements were designated for hedge accounting purposes. The change in fair value of derivative instruments that are designated as cash flow hedge for accounting purposes are initially reported in the condensed consolidated balance sheets as a component of “accumulated other comprehensive income” and reclassified to earnings in “interest expense, net” when realized. The following table summarizes the Company’s derivative instruments as of June 30, 2023: Notional Derivative instruments amount Interest rate swap contracts with several banks that were indexed to daily SOFR, with fixed rates between - 0.02 % and 3.84 % per annum, amortizing notional amounts, with termination dates through December 31, 2033 (1) $ 2,084,869 Total notional amount as of June 30, 2023 $ 2,084,869 (1) Excludes the Company’s interest rate swap contract with an effective date in a future period (“forward starting interest rate swap”). In February 2022, the Company entered into a forward starting interest rate swap with a bank that was indexed to daily SOFR and with an initial notional amount of $ 100,000 . The Company pays a fixed rate at 1.96 % and with an effective date of February 28, 2024 and termination date of February 28 , 2034 . The following table summarizes the fair value of derivative instruments on the consolidated balance sheet as of June 30, 2023: Fair Values of Derivative Instruments Assets (liabilities), net Balance at December 31, 2022 $ 149,244 Change in derivative instruments designated as cash flow hedges 32,239 Reclassification of realized gain on derivative instruments ( 34,964 ) Balance at June 30, 2023 $ 146,519 Over the next twelve months, the Company expects to reclassify an estimated net gain of $ 69,790 related to the designated interest rate swap agreements from “accumulated other comprehensive income (loss)” in the condensed consolidated statements of shareholders’ equity to “interest expense” in the condensed consolidated statements of operations. The following table summarizes the pre-tax impact of derivative instruments on the condensed consolidated statements of operations during the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, Derivative instruments Financial Statement Line Item 2023 2022 2023 2022 Designated Other comprehensive income (expense) $ 45,823 $ 29,720 $ 32,239 $ 89,100 Designated Interest income (expense) $ 18,570 $ ( 1,004 ) $ 34,964 $ ( 4,295 ) For further discussion on the Company’s derivative instruments, please refer to Item 18, “Financial Statements – Note 8” in our 2022 Form 20-F. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | (9) Segment Information The Company operates in three reportable segments: Container Ownership, Container Management and Container Resale. The following tables show segment information for the three and six months ended June 30, 2023 and 2022: Container Container Container Three Months Ended June 30, 2023 Ownership Management Resale Other Eliminations Totals Total lease rental income $ 180,519 $ 10,915 $ — $ — $ 729 $ 192,163 Management fees - non-leasing from $ — $ 48 $ 662 $ — $ — $ 710 Inter-segment management fees $ — $ 16,156 $ 3,502 $ — $ ( 19,658 ) $ — Trading container margin $ — $ — $ 199 $ — $ — $ 199 Gain on sale of owned fleet containers, net $ 7,703 $ — $ — $ — $ — $ 7,703 Depreciation $ 71,993 $ 406 $ — $ — $ ( 1,872 ) $ 70,527 Container lessee default expense, net $ 12 $ — $ — $ — $ — $ 12 Interest expense $ 41,936 $ 202 $ — $ — $ — $ 42,138 Segment income (loss) before income taxes $ 47,389 $ 7,385 $ 3,747 $ ( 1,923 ) $ 1,049 $ 57,647 Income tax (expense) benefit $ ( 1,913 ) $ 567 $ — $ — $ — $ ( 1,346 ) Total assets $ 7,388,210 $ 178,516 $ 8,320 $ 5,046 $ ( 144,936 ) $ 7,435,156 Purchase of containers and fixed assets $ 35,494 $ ( 3 ) $ — $ — $ — $ 35,491 Payments on container leaseback financing $ 96,740 $ — $ — $ — $ — $ 96,740 Container Container Container Six Months Ended June 30, 2023 Ownership Management Resale Other Eliminations Totals Total lease rental income $ 363,376 $ 22,232 $ — $ — $ 1,456 $ 387,064 Management fees - non-leasing from $ — $ 97 $ 1,357 $ — $ — $ 1,454 Inter-segment management fees $ — $ 30,920 $ 7,238 $ — $ ( 38,158 ) $ — Trading container margin $ — $ — $ 44 $ — $ — $ 44 Gain on sale of owned fleet containers, net $ 17,251 $ — $ — $ — $ — $ 17,251 Depreciation $ 145,302 $ 800 $ — $ — $ ( 3,737 ) $ 142,365 Container lessee default expense, net $ 51 $ — $ — $ — $ — $ 51 Interest expense $ 83,865 $ 403 $ — $ — $ — $ 84,268 Segment income (loss) before income taxes $ 97,709 $ 13,038 $ 7,152 $ ( 3,822 ) $ 3,641 $ 117,718 Income tax (expense) benefit $ ( 3,671 ) $ 849 $ — $ — $ — $ ( 2,822 ) Total assets $ 7,388,210 $ 178,516 $ 8,320 $ 5,046 $ ( 144,936 ) $ 7,435,156 Purchase of containers and fixed assets $ 38,438 $ ( 3 ) $ — $ — $ — $ 38,435 Payments on container leaseback financing $ 96,740 $ — $ — $ — $ — $ 96,740 Container Container Container Three Months Ended June 30, 2022 Ownership Management Resale Other Eliminations Totals Total lease rental income $ 189,715 $ 12,837 $ — $ — $ 680 $ 203,232 Management fees - non-leasing from external $ — $ 62 $ 611 $ — $ — $ 673 Inter-segment management fees $ — $ 20,350 $ 3,426 $ — $ ( 23,776 ) $ — Trading container margin $ — $ — $ 447 $ — $ — $ 447 Gain on sale of owned fleet containers, net $ 23,017 $ — $ — $ — $ 196 $ 23,213 Depreciation and amortization $ 74,429 $ 432 $ — $ — $ ( 1,904 ) $ 72,957 Container lessee default expense, net $ 435 $ — $ — $ — $ — $ 435 Interest expense $ 37,381 $ 212 $ — $ — $ — $ 37,593 Segment income (loss) before income tax $ 72,749 $ 11,070 $ 3,849 $ ( 2,023 ) $ ( 39 ) $ 85,606 Income tax (expense) benefit $ ( 2,279 ) $ 232 $ — $ — $ — $ ( 2,047 ) Total assets $ 7,839,857 $ 241,930 $ 7,343 $ 5,933 $ ( 199,536 ) $ 7,895,527 Purchase of containers and fixed assets $ 92,021 $ 88 $ — $ — $ — $ 92,109 Payments on container leaseback financing $ 137,372 $ — $ — $ — $ — $ 137,372 Container Container Container Six Months Ended June 30, 2022 Ownership Management Resale Other Eliminations Totals Total lease rental income $ 375,068 $ 25,602 $ — $ — $ 1,280 $ 401,950 Management fees - non-leasing from external $ — $ 119 $ 1,086 $ — $ — $ 1,205 Inter-segment management fees $ — $ 43,057 $ 6,010 $ — $ ( 49,067 ) $ - Trading container margin $ — $ — $ 1,309 $ — $ — $ 1,309 Gain on sale of owned fleet containers, net $ 38,930 $ — $ — $ — $ 196 $ 39,126 Depreciation and amortization $ 148,462 $ 805 $ — $ — $ ( 3,817 ) $ 145,450 Container lessee default expense, net $ 555 $ — $ — $ — $ — $ 555 Interest expense $ 72,479 $ 423 $ — $ — $ — $ 72,902 Segment income (loss) before income tax $ 139,962 $ 24,863 $ 6,856 $ ( 3,046 ) $ ( 3,716 ) $ 164,919 Income tax expense $ 3,611 $ 75 $ — $ — $ — $ 3,686 Total assets $ 7,839,857 $ 241,930 $ 7,343 $ 5,933 $ ( 199,536 ) $ 7,895,527 Purchase of containers and fixed assets $ 192,952 $ 2,119 $ — $ — $ — $ 195,071 Payments on container leaseback financing $ 533,867 $ — $ — $ — $ — $ 533,867 General and administrative expenses are allocated to the reportable business segments based on direct overhead costs incurred by those segments. Amounts reported in the “Other” column represent activity unrelated to the active reportable business segments. Amounts reported in the “Eliminations” column represent inter-segment management fees between the Container Management and Container Resale segments and the Container Ownership segment. Geographic Segment Information Substantially all of the Company’s leasing related revenue is denominated in U.S. dollars. As all of the Company’s containers are used internationally, where no single container is domiciled in one particular place for a prolonged period of time, all of the Company’s long-lived assets are considered to be international with no single country of use. The following table represents the geographic allocation of total fleet lease rental income and management fees from non-leasing services during the three and six months ended June 30, 2023 and 2022 based on customers’ and Container Investors’ primary domicile, respectively: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Total lease rental income: Europe $ 92,541 $ 95,999 $ 186,234 $ 188,935 Asia 90,726 97,998 183,137 195,263 North / South America 8,661 8,949 17,237 17,275 Bermuda — — — — All other international 235 286 456 477 $ 192,163 $ 203,232 $ 387,064 $ 401,950 Management fees, non-leasing: Europe $ 419 $ 339 $ 849 $ 614 Bermuda 264 315 550 555 North / South America 20 9 40 17 Asia — — — — All other international 7 10 15 19 $ 710 $ 673 $ 1,454 $ 1,205 The following table represents the geographic allocation of trading container sales proceeds and gain on sale of owned fleet containers, net during the three and six months ended June 30, 2023 and 2022 based on the location of sale: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Trading container sales proceeds: North / South America $ 2,944 2,644 $ 5,322 $ 5,624 Asia 1,573 2,115 2,847 5,972 Europe 332 633 646 1,414 Bermuda — — — — All other international — — — — $ 4,849 $ 5,392 $ 8,815 $ 13,010 Gain on sale of owned fleet containers, net: Asia $ 4,829 $ 14,836 $ 10,572 $ 24,827 North / South America 2,161 4,006 5,198 6,701 Europe 713 4,371 1,481 7,598 Bermuda — — — — All other international — — — — $ 7,703 $ 23,213 $ 17,251 $ 39,126 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (10) Commitments and Contingencies (a) Restricted Cash Restricted interest-bearing cash accounts were established by the Company as additional collateral for outstanding borrowings under certain of the Company’s debt facilities. The total balance of these restricted cash accounts was $ 102,336 and $ 102,591 as of June 30, 2023 and December 31, 2022, respectively. (b) Container Commitments At June 30, 2023, the Company had commitments to purchase containers to be delivered subsequent to June 30, 2023 in the total amount of $ 23,850 . (c) Legal Proceedings The Company is the subject of, or party to, pending or threatened legal proceedings arising in the ordinary course of its business. Based upon information presently available, the Company does not expect any liability arising from these matters to have a material effect on the Company’s consolidated financial condition, results of operations or cash flows. (d) Distribution Expense to Managed Fleet Container Investors The amounts distributed to the Container Investors are variable payments based upon the net operating income for each managed container (see Note 3 “Managed Container Fleet”). There are no future minimum lease payment obligations under the Company’s management agreements. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | (11) Shareholders’ Equity Share Repurchase Program In 2019, the Company’s board of directors approved a share repurchase program to repurchase up to $ 25,000 of the Company’s common shares, in 2020 the board of directors approved an increase of another $ 75,000 to this program, in 2021 the program was further increased by $ 100,000 , and in 2022 the program was further increased by $ 250,000 . Under the program, the Company may purchase its common shares from time to time in the open market, in privately negotiated transactions or such other manner as will comply with applicable laws and regulations. The authorization does not obligate the Company to acquire a specific number of shares during any period, but it may be modified, suspended, or terminated at any time at the discretion of the Company’s board of directors. During the six months ended June 30, 2023, the Company repurchased 2,414,893 shares at an average price of $ 34.83 for a total amount of $ 84,105 , including commissions paid. During the six months ended June 30, 2022, the Company repurchased 2,375,508 shares at an average price of $ 34.35 for a total amount of $ 81,603 , including commissions paid. As of June 30, 2023, approximately $ 38,592 remained available for repurchase under the share repurchase program. Preferred Shares The following table summarizes the Company’s preferred share issuances (the “Series”): Preferred Share Offering Date of Issuance Number of Depositary Shares Issued and Outstanding (1) Liquidation Preference Underwriting Discounts Net Proceeds 7.00 % Series A fixed-to-floating rate cumulative redeemable perpetual preferred shares (“Series A”) (2) April 2021 6,000,000 $ 150,000 $ 5,292 $ 144,708 6.25 % Series B fixed rate cumulative redeemable perpetual preferred shares (“Series B”) (3) August 2021 6,000,000 150,000 5,128 144,872 Total 12,000,000 $ 300,000 $ 10,420 $ 289,580 (1) Each depositary share representing a 1/1,000 th interest in a preferred share, $ 25,000 liquidation preference per share (equivalent to $ 25.00 per depositary share). (2) Series A have no maturity date and are redeemable from June 15, 2026 by the Company. (3) Series B have no maturity date and are redeemable from December 15, 2026 by the Company. Each Series of preferred shares may be redeemed at the Company’s option, at any time after approximately five years from original issuance, for cash at a redemption price of $ 25.00 per depositary share plus an amount equal to all accumulated and unpaid dividends, whether or not declared. The Company may also redeem each Series of preferred shares in the event of a Change of Control (as defined in the Certificate of Designations). If the Company does not elect to redeem the preferred shares in a Change of Control triggering event, holders of each Series of preferred shares may have the right to convert their preferred shares into common shares. There is no mandatory redemption of each Series of preferred shares or redemption at the option of the holders. Holders of the preferred shares do not have general voting rights. Preferred Share Dividends Dividends on each Series of preferred shares accrue daily and are cumulative from and including the date of original issuance and are payable quarterly in arrears on the 15 th day of March, June, September and December of each year, when declared by the Company’s board of directors. Dividends accrue at the stated annual rate of the $ 25,000 liquidation preference. Each Series of preferred shares rank senior to the Company ’ s common shares with respect to dividend rights and rights upon the Company's liquidation, dissolution or winding up. The Company’s board of directors approved and declared the following quarterly preferred cash dividends during the three and six months ended June 30, 2023 and 2022 on its issued and outstanding preferred shares: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Preferred Share Offering Aggregate Payment Per Depositary Share Payment (1) Aggregate Payment Per Depositary Share Payment (1) Aggregate Payment Per Depositary Share Payment (1) Aggregate Payment Per Depositary Share Payment (1) Series A $ 2,625 $ 0.44 $ 2,625 $ 0.44 $ 5,250 $ 0.44 $ 5,250 $ 0.44 Series B $ 2,344 $ 0.39 $ 2,344 $ 0.39 $ 4,688 $ 0.39 $ 4,688 $ 0.39 Total $ 4,969 $ 4,969 $ 9,938 $ 9,938 (1) Rounded to the nearest whole cent. As of June 30, 2023, the Company had cumulative undeclared and unpaid preferred dividends of $ 854 . Common Share Dividends The Company’s board of directors approved and declared the following cash dividends paid during the three and six months ended June 30, 2023 and 2022 on its issued and outstanding common shares: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Aggregate Payment Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment Per Share Payment Common share dividends $ 12,533 $ 0.30 $ 11,804 $ 0.25 $ 25,398 $ 0.30 $ 23,858 $ 0.25 As of June 30, 2023, the Company had accrued dividends of $ 1,010 for unvested performance restricted share units with dividend equivalent rights, which are paid when the associated award vests at the end of the performance period. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (12) Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income attributable to common shareholders by the weighted average number of shares outstanding during the applicable period. Diluted EPS reflects the potential dilution that could occur if all outstanding share options were exercised for, and all outstanding restricted share units (“RSU”) and performance restricted share units (“PSU”) were converted into, common shares. A reconciliation of the numerator and denominator of basic EPS with that of diluted EPS is reported as follows: Three Months Ended Six Months Ended June 30, June 30, Share amounts in thousands 2023 2022 2023 2022 Numerator: Net income attributable to common shareholders $ 51,332 $ 78,590 $ 104,958 $ 151,295 Denominator: Weighted average common shares outstanding - basic 41,963 47,486 42,536 47,942 Dilutive share options, RSU and PSU 899 819 829 857 Weighted average common shares outstanding - diluted 42,862 48,305 43,365 48,799 Net income attributable to common shareholders per common share: Basic $ 1.22 $ 1.66 $ 2.47 $ 3.16 Diluted $ 1.20 $ 1.63 $ 2.42 $ 3.10 Share options, RSU and PSU excluded from the computation of 111 285 401 221 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | (13) Subsequent Events In July 2023, the Company’s board of directors approved and declared a quarterly preferred cash dividend on its issued and outstanding preferred shares, payable on September 15, 2023 to holders of record as of September 1, 2023. The dividend declared on Series A Preferred Shares and Series B Preferred Shares were $ 0.44 and $ 0.39 per depositary share (rounded to the nearest whole cent), respectively, for a total aggregate amount of $ 2,625 and $ 2,344 , respectively. In July 2023, the Company’s board of directors approved and declared a cash dividend of $ 0.30 per share on its issued and outstanding common shares, payable on September 15, 2023 to holders of record as of September 1, 2023. In July 2023, the Company’s board of directors authorized an increase to the share repurchase program for an additional $ 100,000 of the Company’s outstanding common shares, from $ 450,000 to an aggregate of $ 550,000 (including all common shares repurchased under the program prior to this amendment), commencing in September 2019 up to and including January 1, 2026. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | (a) Basis of Presentation and Consolidation Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2022 (“2022 Form 20-F”) filed with the Securities and Exchange Commission on February 14, 2023. The condensed consolidated financial statements of the Company include TGH and all of its wholly-owned subsidiaries. All intercompany accounts and balances have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosure of contingent assets and liabilities in the condensed consolidated financial statements. The Company’s management evaluates its estimates on an ongoing basis, including those related to container leasing equipment such as residual values and depreciable lives, containers held for sale, allowance for credit losses, income taxes and accruals. Actual results could differ from those estimates under different assumptions or conditions. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal and recurring adjustments) necessary to present fairly the Company’s condensed consolidated balance sheet as of June 30, 2023, the Company’s condensed consolidated statements of operations and comprehensive income for the three and six month periods ended June 30, 2023 and 2022, and the Company’s condensed consolidated statements of shareholders’ equity and cash flows for the six month periods ended June 30, 2023 and 2022. These condensed consolidated financial statements are not necessarily indicative of the results of operations or cash flows that may be reported for the remainder of the fiscal year ending December 31, 2023. |
Concentration of Credit Risk | (b) Concentration of Credit Risk The Company’s customers are mainly international shipping lines, which transport goods on international trade routes. Once the containers are on-hire with a lessee, the Company does not track their location. The domicile of the lessee is not indicative of where the lessee is transporting the containers. The Company’s business risk in its geographic concentration lies with the creditworthiness of the lessees rather than the location of the containers or the domicile of the lessees. Total lease rental income, as reported in the condensed consolidated statements of operations, comprises revenue earned from leases on containers in the Company’s total fleet, including revenue earned from leases on containers in its managed fleet. Except for the lessees noted in the tables below, no other single lessee accounted for more than 10% of the Company’s total lease rental income for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended June 30, June 30, Total Lease Rental Income 2023 2022 2023 2022 Customer A 25.5 % 24.5 % 25.5 % 24.0 % Customer B 11.8 % 15.6 % 11.7 % 15.1 % Customer C 10.9 % 10.7 % 10.8 % 10.8 % Customer D 4.6 % 13.5 % 4.7 % 11.3 % Other financial instruments that are exposed to concentrations of credit risk are cash and cash equivalents, restricted cash balances, and derivatives (see Note 8 “Debt and Derivative Instruments” for further discussions). The Company maintains cash and cash equivalents and restricted cash accounts with various financial institutions, which often exceed Federal Deposit Insurance Corporation (FDIC) or foreign equivalents insurance limits. The Company has not experienced any losses in such accounts with these financial institutions. The Company does not anticipate any non-performance by the financial institutions or derivative counterparties as they are highly rated financial institutions. |
Container Leasing Equipment | (c) Container Leasing Equipment Capitalized costs for container leasing equipment include the container cost payable to the manufacturer, inspection, delivery, and the associated transportation costs incurred in moving the Company’s containers from the manufacturer to the containers’ first destined location. Container leasing equipment are depreciated using the straight-line method over their estimated useful lives to an estimated residual value. Used containers are depreciated based upon their remaining useful lives at the date of acquisition to an estimated residual value. Repair and maintenance costs that do not extend the useful lives of the container leasing equipment are recognized in “direct container expense - owned fleet” in the condensed consolidated statements of operations at the time the costs are incurred. Impairment of Container Leasing Equipment The Company reviews its container leasing equipment for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The Company compares the carrying value of the container leasing equipment to the expected future undiscounted cash flows for the purpose of assessing the recoverability of the recorded amounts. If the carrying value exceeds expected future undiscounted cash flows, the assets are reduced to fair value. There was no such impairment of the Company’s container leasing equipment for the three and six months ended June 30, 2023 and 2022. Write-Off (Recoveries) of Container Leasing Equipment due to Lessees in Default The Company evaluates the recoverability of the recorded amounts of container leasing equipment that are unlikely to be recovered from lessees in default. There was no such impairment of the Company’s container leasing equipment that are unlikely to be recovered from lessees in default for the three and six months ended June 30, 2023. For the three and six months ended June 30, 2022, the Company recorded impairment charges of $ 1,068 to write-off containers that were unlikely to be recovered from lessees in default, offset by gains of $ 827 associated with recoveries on containers previously estimated as lost with lessees in default. These amounts are included in “container lessee default expense, net” in the condensed consolidated statements of operations. |
Containers Held for Sale | (d) Containers Held for Sale Containers identified as held for sale are valued at the lower of carrying value or fair value, less costs to sell. The Company records impairment to write-down the value of containers held for sale to their estimated fair value, less cost to sell, under observable (Level 2) market inputs. The fair value is estimated based on recent gross sales proceeds for sales of similar types of containers in the locations in which the containers are stored. When containers are sold or otherwise retired, the cost and related accumulated depreciation are removed, and any resulting gain or loss is recognized. Subsequent additions or reductions to the fair values of these written down assets are recorded as adjustments to the carrying value of the containers held for sale. The carrying value of containers held for sale that have been impaired and written down to their estimated fair value less cost to sell was $ 4,365 and $ 3,556 as of June 30, 2023 and December 31, 2022, respectively. Any subsequent increase in fair value less costs to sell is recognized as a reversal of container impairment but not in excess of the cumulative loss previously recognized. During the three and six months ended June 30, 2023, the Company recorded container impairment charges of $ 66 and $ 1,811 , respectively, and during the three and six months ended June 30, 2022, the Company recorded container impairment charges of $ 253 and $ 603 , respectively, to write down the value of containers held for sale to their estimated fair value less cost to sell, net of reversals of previously recorded impairments on containers held for sale due to rising used container prices. The impairment charges are included in “depreciation and amortization” in the condensed consolidated statements of operations. |
Fair Value Measurements | (e) Fair Value Measurements As of June 30, 2023 and December 31, 2022, the carrying amounts of cash and cash equivalents, restricted cash, accounts receivable and payable, due from affiliates, net, container contracts payable and due to container investors, net, approximate their fair values due to the short-term nature of these financial instruments. See Note 2 (d) “Containers Held for Sale”, Note 5 “Leases” and Note 8 “Debt and Derivative Instruments” for further discussions on fair value of containers held for sale, fair value of net investment in finance leases and container leaseback financing receivable, and fair value of derivative instruments, respectively. As of June 30, 2023, the Company did no t hold any investments in marketable equity securities. As of December 31, 2022, the Company held investments in marketable equity securities with readily determinable fair values of $ 1,411 . The fair value of investments in marketable equity securities was measured at each balance sheet date based on quoted market prices (Level 1), with changes in fair value recorded in earnings as “other, net” in the condensed consolidated statements of operations. |
Reclassifications and Changes in Presentation | (f) Reclassifications and Changes in Presentation Certain prior period amounts for the three and six months ended June 30, 2022 have been reclassified to conform to the current period presentation. The reclassifications as discussed below have no effect on previously reported net income and net change in cash, cash equivalents, and restricted cash. • The Company reclassified the amounts out of the separate line items “realized gain (loss) on financial instruments, net” and “unrealized gain (loss) on financial instruments, net” to be included within the line item “other, net” and “changes in operating assets and liabilities” in the condensed consolidated statements of operations and in the condensed consolidated statements of cash flows, respectively. • The Company reclassified the fixed asset purchase amounts out of the previously reported line item “purchase of containers and fixed assets” to be included to the separate line item “other” in the condensed consolidated statements of cash flows. |
Recently Issued Accounting Standards | (g) Recently Issued Accounting Standards In March 2022, the FASB issued Accounting Standards Update No. 2022-02, Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). The amendment eliminates the accounting guidance for troubled debt restructurings by creditors in Topic 310 - Receivables and amends the disclosure requirements for restructurings involving borrowers that are experiencing financial difficulty under ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments , which was adopted by the Company on the effective date of January 1, 2020. ASU 2022-02 requires disclosure of current period gross write-offs by year of origination for financing receivables and net investment in finance leases and must be included in the vintage disclosure of the amortized cost basis of financing receivables and net investment in finance leases by credit quality indicator and by year of origination as required by ASU 2016-13. The Company adopted ASU 2022-02 effective January 1, 2023 on a prospective basis and the adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements. There were no changes to the Company’s significant accounting policies during the three and six months ended June 30, 2023. For further discussion on the Company’s accounting policies, please refer to Note 1 “Nature of Business and Summary of Significant Accounting Polices” in Item 18, “Financial Statements” in our 2022 Form 20-F. |
Derivative Instruments and Hedging Activities | The Company has entered into several derivative agreements with several banks to reduce the impact of changes in interest rates associated with its variable rate debt. Interest rate swap agreements involve payments by the Company to counterparties at fixed rate interest payments in return for receipts based on floating-rate amounts. The Company has also utilized forward starting interest rate swap agreements to reduce the impact of interest rate changes on anticipated future debt issuances. The Company has also utilized interest rate cap agreements, which place a ceiling on the Company’s exposure to rising interest rates, to manage interest rate risk exposure. The Company has utilized the income approach to measure at each balance sheet date the fair value of its derivative instruments on a recurring basis using observable (Level 2) market inputs. The Company presents the fair value of derivative instruments, which are inclusive of counterparty risk, on a gross basis as separate line items on the condensed consolidated balance sheets. The Company monitors its counterparties’ credit ratings on an on-going basis and does not anticipate any non-performance by the counterparties as they are highly rated financial institutions. As of June 30, 2023 and December 31, 2022, all of the Company’s interest rate swap agreements were designated for hedge accounting purposes. The change in fair value of derivative instruments that are designated as cash flow hedge for accounting purposes are initially reported in the condensed consolidated balance sheets as a component of “accumulated other comprehensive income” and reclassified to earnings in “interest expense, net” when realized. |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Concentration Risk of Total Lease Rental Income | Except for the lessees noted in the tables below, no other single lessee accounted for more than 10% of the Company’s total lease rental income for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended June 30, June 30, Total Lease Rental Income 2023 2022 2023 2022 Customer A 25.5 % 24.5 % 25.5 % 24.0 % Customer B 11.8 % 15.6 % 11.7 % 15.1 % Customer C 10.9 % 10.7 % 10.8 % 10.8 % Customer D 4.6 % 13.5 % 4.7 % 11.3 % |
Managed Container Fleet (Tables
Managed Container Fleet (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Company's Leasing Equipment | The Company’s container leasing equipment includes such managed containers in the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022, which consisted of the following: June 30, 2023 December 31, 2022 Cost Accumulated Net Book Cost Accumulated Net Book Containers - owned fleet $ 6,258,690 $ ( 2,090,449 ) $ 4,168,241 $ 6,378,374 $ ( 2,027,743 ) $ 4,350,631 Containers - managed fleet 16,410 ( 2,409 ) 14,001 16,417 ( 1,924 ) 14,493 Total containers $ 6,275,100 $ ( 2,092,858 ) $ 4,182,242 $ 6,394,791 $ ( 2,029,667 ) $ 4,365,124 |
Summary of Income from Managed Fleet, Including Management Fees Earned from Acquisition Fees and Sales Commissions | Income from the managed fleet, including management fees earned from acquisition fees and sales commissions during the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Lease rental income - managed fleet $ 10,693 $ 12,678 $ 21,803 $ 25,319 Less: distribution expense to managed fleet container ( 9,507 ) ( 11,302 ) ( 19,432 ) ( 22,475 ) Less: depreciation and interest expense on managed ( 447 ) ( 458 ) ( 890 ) ( 911 ) 739 918 1,481 1,933 Management fees from non-leasing services 710 673 1,454 1,205 Total $ 1,449 $ 1,591 $ 2,935 $ 3,138 |
Summary of Reconciliation of Balance Sheet Accounts From the Managed Fleet to Total Amount in Condensed Consolidated Balance Sheets | The following table provides a reconciliation of the balance sheet accounts from the managed fleet to the total amount as of June 30, 2023 and December 31, 2022 in the condensed consolidated balance sheets (also, see Note 4 “Transactions with Affiliates and Container Investors”): June 30, 2023 December 31, 2022 Accounts receivable, net - owned fleet $ 111,519 $ 107,457 Accounts receivable, net - managed fleet 7,412 7,348 Total accounts receivable, net $ 118,931 $ 114,805 Prepaid expenses and other current assets - owned fleet $ 8,043 $ 16,614 Prepaid expenses and other current assets - managed fleet 57 89 Total prepaid expenses and other current assets $ 8,100 $ 16,703 Accounts payable and accrued expenses - owned fleet $ 20,432 $ 22,868 Accounts payable and accrued expenses - managed fleet 931 1,292 Total accounts payable and accrued expenses $ 21,363 $ 24,160 Container contracts payable - owned fleet $ 72,618 $ 6,648 Total container contracts payable $ 72,618 $ 6,648 |
Transactions with Affiliates _2
Transactions with Affiliates and Container Investors (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Summary of Due to Container Investors, Net | The following table provides a summary of due to container investors, net at June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Accounts receivable, net - managed fleet $ 7,412 $ 7,348 Prepaid expenses and other current assets - managed fleet 57 89 Accounts payable and accrued expenses - managed fleet ( 931 ) ( 1,292 ) 6,538 6,145 Distributions due to container investors on lease rentals collected, net of 8,341 9,987 Due to container investors, net $ 14,879 $ 16,132 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease Rental Income | The Company’s lease rental income for the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended June 30, 2023 2022 Owned Managed Total Owned Managed Total Lease rental income - operating leases $ 140,050 $ 10,157 $ 150,207 $ 149,493 $ 12,345 $ 161,838 Interest income on net investment in finance leases 26,025 — 26,025 27,102 — 27,102 Interest income on container leaseback financing 11,827 — 11,827 10,733 — 10,733 Variable lease revenue 3,568 536 4,104 3,226 333 3,559 Total lease rental income $ 181,470 $ 10,693 $ 192,163 $ 190,554 $ 12,678 $ 203,232 Six Months Ended June 30, 2023 2022 Owned Managed Total Owned Managed Total Lease rental income - operating leases $ 281,128 $ 20,531 $ 301,659 $ 298,324 $ 24,701 $ 323,025 Interest income on net investment in finance leases 52,512 — 52,512 54,560 — 54,560 Interest income on container leaseback financing 23,665 — 23,665 17,752 — 17,752 Variable lease revenue 7,956 1,272 9,228 5,995 618 6,613 Total lease rental income $ 365,261 $ 21,803 $ 387,064 $ 376,631 $ 25,319 $ 401,950 |
Schedule of Components of Net Investment in Finance Leases | The following table represents the components of the net investment in finance leases as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Future minimum lease payments receivable $ 2,370,152 $ 2,487,365 Residual value of containers 47,010 47,686 Less: unearned income ( 661,325 ) ( 713,736 ) Net investment in finance leases (1) 1,755,837 1,821,315 Less: Allowance for credit losses ( 892 ) ( 1,279 ) Net investment in finance leases, net (2) $ 1,754,945 $ 1,820,036 Amounts due within one year 130,681 130,913 Amounts due beyond one year 1,624,264 1,689,123 Net investment in finance leases, net $ 1,754,945 $ 1,820,036 (1) One major customer represented 81.5 % and 80.8 % of the Company’s finance leases portfolio as of June 30, 2023 and December 31, 2022, respectively. No other customer represented more than 10% of the Company’s finance leases portfolio in each of those periods. (2) As of June 30, 2023 and December 31, 2022, the fair value of net investment in finance leases (including the short-term balance) was approximately $ 1,576,494 and $ 1,659,155 , respectively, and was measured using Level 2 inputs. |
Schedule of Components of Container Leaseback Financing Receivable | The following table represents the components of the container leaseback financing receivable as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Future minimum payments receivable $ 1,295,692 $ 1,179,515 Less: unearned income ( 401,301 ) ( 354,769 ) Container leaseback financing receivable (1) 894,391 824,746 Less: Allowance for credit losses ( 63 ) ( 114 ) Container leaseback financing receivable, net (2) $ 894,328 $ 824,632 Amounts due within one year 59,519 53,652 Amounts due beyond one year 834,809 770,980 Container leaseback financing receivable, net $ 894,328 $ 824,632 (1) One major customer represented 98.2 % and 97.4 % of the Company’s container leaseback financing receivable portfolio as of June 30, 2023 and December 31, 2022, respectively. (2) As of June 30, 2023 and December 31, 2022, the fair value of container leaseback financing receivable (including the short-term balance) was approximately $ 769,422 and $ 732,951 , respectively, and was measured using Level 2 inputs. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Allowance For Credit Loss [Abstract] | |
Summary of Net Investment in Finance Leases and Container Leaseback Financing Receivable | The following table presents the net investment in finance leases and container leaseback financing receivable by internal credit rating category and year of origination as of June 30, 2023: Six Months Ended June 30, 2023 2022 2021 2020 2019 Prior Total Tier 1 $ — $ 94,163 $ 787,204 $ 550,235 $ 94,507 $ 35,473 $ 1,561,582 Tier 2 86 26,975 72,209 30,747 27,288 15,023 172,328 Tier 3 984 8,194 5,733 1,569 5,229 218 21,927 Net investment in finance $ 1,070 $ 129,332 $ 865,146 $ 582,551 $ 127,024 $ 50,714 $ 1,755,837 Tier 1 $ 96,064 $ 493,971 $ 11,148 $ 97,690 $ 179,603 $ — $ 878,476 Tier 2 — — 3,408 — 12,507 — 15,915 Container leaseback financing $ 96,064 $ 493,971 $ 14,556 $ 97,690 $ 192,110 $ — $ 894,391 |
Debt and Derivative Instrumen_2
Debt and Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt Obligation | The following represents the Company’s debt obligations as of June 30, 2023 and December 31, 2022: Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable June 30, 2023 December 31, 2022 Outstanding Average Interest Outstanding Average Interest Final Maturity TL Revolving Credit Facility $ 1,309,858 6.53 % $ 1,367,858 5.78 % August 2027 TL 2019 Term Loan 121,503 3.50 % 127,293 3.50 % December 2026 TL 2021-1 Term loan 57,515 2.65 % 60,314 2.65 % February 2028 TL 2021-2 Term Loan 184,825 2.90 % 192,202 2.90 % October 2028 TMCL II Secured Debt Facility (1) 1,206,041 6.75 % 1,239,440 6.00 % November 2028 TMCL VII 2020-1 Bonds 306,577 3.06 % 332,413 3.06 % August 2045 TMCL VII 2020-2 Bonds 446,788 2.26 % 476,279 2.26 % September 2045 TMCL VII 2020-3 Bonds 165,695 2.15 % 175,750 2.15 % September 2045 TMCL VII 2021-1 Bonds 445,948 1.72 % 467,881 1.72 % February 2046 TMCL VII 2021-2 Bonds 538,325 2.27 % 564,373 2.27 % April 2046 TMCL VII 2021-3 Bonds 512,000 1.98 % 536,000 1.98 % August 2046 Total debt obligations (2) $ 5,295,075 $ 5,539,803 Unamortized debt premiums and discounts $ ( 30,226 ) $ ( 34,884 ) Debt, net of unamortized costs $ 5,264,849 $ 5,504,919 Debt, net of unamortized costs - current $ 392,720 $ 377,898 Debt, net of unamortized costs - non-current $ 4,872,129 $ 5,127,021 (1) Final maturity of the TMCL II Secured Debt Facility is based on the assumption that the facility will not be extended on its associated conversion date. (2) The fair value of total debt based on the borrowing rates available to the Company was approximately $ 4,859,159 and $ 5,107,874 at June 30, 2023 and December 31, 2022, respectively, and was measured using Level 2 inputs. |
Summary of Outstanding Fixed-Rate and Floating-Rate Debt | The following table summarizes the Company’s outstanding fixed-rate and floating-rate debt as of June 30, 2023: Balance Outstanding Contractual Weighted Average Interest Rate Excluding impact of derivative instruments: Fixed-rate debt $ 2,779,176 2.31 % Floating-rate debt 2,515,899 6.63 % Including impact of derivative instruments: Fixed-rate debt 2,779,176 2.31 % Hedged floating-rate debt 2,084,869 3.16 % Total fixed and hedged debt 4,864,045 2.67 % Unhedged floating-rate debt 431,030 6.57 % Total $ 5,295,075 2.99 % |
Summary of Derivative Instruments | The following table summarizes the Company’s derivative instruments as of June 30, 2023: Notional Derivative instruments amount Interest rate swap contracts with several banks that were indexed to daily SOFR, with fixed rates between - 0.02 % and 3.84 % per annum, amortizing notional amounts, with termination dates through December 31, 2033 (1) $ 2,084,869 Total notional amount as of June 30, 2023 $ 2,084,869 (1) Excludes the Company’s interest rate swap contract with an effective date in a future period (“forward starting interest rate swap”). In February 2022, the Company entered into a forward starting interest rate swap with a bank that was indexed to daily SOFR and with an initial notional amount of $ 100,000 . The Company pays a fixed rate at 1.96 % and with an effective date of February 28, 2024 and termination date of February 28 , 2034 . |
Summary of Fair Value of Derivative Instruments on Consolidated Balance Sheet | The following table summarizes the fair value of derivative instruments on the consolidated balance sheet as of June 30, 2023: Fair Values of Derivative Instruments Assets (liabilities), net Balance at December 31, 2022 $ 149,244 Change in derivative instruments designated as cash flow hedges 32,239 Reclassification of realized gain on derivative instruments ( 34,964 ) Balance at June 30, 2023 $ 146,519 |
Summary of Pre-tax Impact of Derivative Instruments on Condensed Consolidated Statements of Operations | The following table summarizes the pre-tax impact of derivative instruments on the condensed consolidated statements of operations during the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, Derivative instruments Financial Statement Line Item 2023 2022 2023 2022 Designated Other comprehensive income (expense) $ 45,823 $ 29,720 $ 32,239 $ 89,100 Designated Interest income (expense) $ 18,570 $ ( 1,004 ) $ 34,964 $ ( 4,295 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | The following tables show segment information for the three and six months ended June 30, 2023 and 2022: Container Container Container Three Months Ended June 30, 2023 Ownership Management Resale Other Eliminations Totals Total lease rental income $ 180,519 $ 10,915 $ — $ — $ 729 $ 192,163 Management fees - non-leasing from $ — $ 48 $ 662 $ — $ — $ 710 Inter-segment management fees $ — $ 16,156 $ 3,502 $ — $ ( 19,658 ) $ — Trading container margin $ — $ — $ 199 $ — $ — $ 199 Gain on sale of owned fleet containers, net $ 7,703 $ — $ — $ — $ — $ 7,703 Depreciation $ 71,993 $ 406 $ — $ — $ ( 1,872 ) $ 70,527 Container lessee default expense, net $ 12 $ — $ — $ — $ — $ 12 Interest expense $ 41,936 $ 202 $ — $ — $ — $ 42,138 Segment income (loss) before income taxes $ 47,389 $ 7,385 $ 3,747 $ ( 1,923 ) $ 1,049 $ 57,647 Income tax (expense) benefit $ ( 1,913 ) $ 567 $ — $ — $ — $ ( 1,346 ) Total assets $ 7,388,210 $ 178,516 $ 8,320 $ 5,046 $ ( 144,936 ) $ 7,435,156 Purchase of containers and fixed assets $ 35,494 $ ( 3 ) $ — $ — $ — $ 35,491 Payments on container leaseback financing $ 96,740 $ — $ — $ — $ — $ 96,740 Container Container Container Six Months Ended June 30, 2023 Ownership Management Resale Other Eliminations Totals Total lease rental income $ 363,376 $ 22,232 $ — $ — $ 1,456 $ 387,064 Management fees - non-leasing from $ — $ 97 $ 1,357 $ — $ — $ 1,454 Inter-segment management fees $ — $ 30,920 $ 7,238 $ — $ ( 38,158 ) $ — Trading container margin $ — $ — $ 44 $ — $ — $ 44 Gain on sale of owned fleet containers, net $ 17,251 $ — $ — $ — $ — $ 17,251 Depreciation $ 145,302 $ 800 $ — $ — $ ( 3,737 ) $ 142,365 Container lessee default expense, net $ 51 $ — $ — $ — $ — $ 51 Interest expense $ 83,865 $ 403 $ — $ — $ — $ 84,268 Segment income (loss) before income taxes $ 97,709 $ 13,038 $ 7,152 $ ( 3,822 ) $ 3,641 $ 117,718 Income tax (expense) benefit $ ( 3,671 ) $ 849 $ — $ — $ — $ ( 2,822 ) Total assets $ 7,388,210 $ 178,516 $ 8,320 $ 5,046 $ ( 144,936 ) $ 7,435,156 Purchase of containers and fixed assets $ 38,438 $ ( 3 ) $ — $ — $ — $ 38,435 Payments on container leaseback financing $ 96,740 $ — $ — $ — $ — $ 96,740 Container Container Container Three Months Ended June 30, 2022 Ownership Management Resale Other Eliminations Totals Total lease rental income $ 189,715 $ 12,837 $ — $ — $ 680 $ 203,232 Management fees - non-leasing from external $ — $ 62 $ 611 $ — $ — $ 673 Inter-segment management fees $ — $ 20,350 $ 3,426 $ — $ ( 23,776 ) $ — Trading container margin $ — $ — $ 447 $ — $ — $ 447 Gain on sale of owned fleet containers, net $ 23,017 $ — $ — $ — $ 196 $ 23,213 Depreciation and amortization $ 74,429 $ 432 $ — $ — $ ( 1,904 ) $ 72,957 Container lessee default expense, net $ 435 $ — $ — $ — $ — $ 435 Interest expense $ 37,381 $ 212 $ — $ — $ — $ 37,593 Segment income (loss) before income tax $ 72,749 $ 11,070 $ 3,849 $ ( 2,023 ) $ ( 39 ) $ 85,606 Income tax (expense) benefit $ ( 2,279 ) $ 232 $ — $ — $ — $ ( 2,047 ) Total assets $ 7,839,857 $ 241,930 $ 7,343 $ 5,933 $ ( 199,536 ) $ 7,895,527 Purchase of containers and fixed assets $ 92,021 $ 88 $ — $ — $ — $ 92,109 Payments on container leaseback financing $ 137,372 $ — $ — $ — $ — $ 137,372 Container Container Container Six Months Ended June 30, 2022 Ownership Management Resale Other Eliminations Totals Total lease rental income $ 375,068 $ 25,602 $ — $ — $ 1,280 $ 401,950 Management fees - non-leasing from external $ — $ 119 $ 1,086 $ — $ — $ 1,205 Inter-segment management fees $ — $ 43,057 $ 6,010 $ — $ ( 49,067 ) $ - Trading container margin $ — $ — $ 1,309 $ — $ — $ 1,309 Gain on sale of owned fleet containers, net $ 38,930 $ — $ — $ — $ 196 $ 39,126 Depreciation and amortization $ 148,462 $ 805 $ — $ — $ ( 3,817 ) $ 145,450 Container lessee default expense, net $ 555 $ — $ — $ — $ — $ 555 Interest expense $ 72,479 $ 423 $ — $ — $ — $ 72,902 Segment income (loss) before income tax $ 139,962 $ 24,863 $ 6,856 $ ( 3,046 ) $ ( 3,716 ) $ 164,919 Income tax expense $ 3,611 $ 75 $ — $ — $ — $ 3,686 Total assets $ 7,839,857 $ 241,930 $ 7,343 $ 5,933 $ ( 199,536 ) $ 7,895,527 Purchase of containers and fixed assets $ 192,952 $ 2,119 $ — $ — $ — $ 195,071 Payments on container leaseback financing $ 533,867 $ — $ — $ — $ — $ 533,867 |
Segment Information Geographic Allocation of Lease Rental Income and Management Fees | The following table represents the geographic allocation of total fleet lease rental income and management fees from non-leasing services during the three and six months ended June 30, 2023 and 2022 based on customers’ and Container Investors’ primary domicile, respectively: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Total lease rental income: Europe $ 92,541 $ 95,999 $ 186,234 $ 188,935 Asia 90,726 97,998 183,137 195,263 North / South America 8,661 8,949 17,237 17,275 Bermuda — — — — All other international 235 286 456 477 $ 192,163 $ 203,232 $ 387,064 $ 401,950 Management fees, non-leasing: Europe $ 419 $ 339 $ 849 $ 614 Bermuda 264 315 550 555 North / South America 20 9 40 17 Asia — — — — All other international 7 10 15 19 $ 710 $ 673 $ 1,454 $ 1,205 |
Segment Information Geographic Allocation of Trading Container Sales Proceeds and Gains on Sale of Owned Fleet Containers Net | The following table represents the geographic allocation of trading container sales proceeds and gain on sale of owned fleet containers, net during the three and six months ended June 30, 2023 and 2022 based on the location of sale: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Trading container sales proceeds: North / South America $ 2,944 2,644 $ 5,322 $ 5,624 Asia 1,573 2,115 2,847 5,972 Europe 332 633 646 1,414 Bermuda — — — — All other international — — — — $ 4,849 $ 5,392 $ 8,815 $ 13,010 Gain on sale of owned fleet containers, net: Asia $ 4,829 $ 14,836 $ 10,572 $ 24,827 North / South America 2,161 4,006 5,198 6,701 Europe 713 4,371 1,481 7,598 Bermuda — — — — All other international — — — — $ 7,703 $ 23,213 $ 17,251 $ 39,126 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Class Of Stock [Line Items] | |
Summary of Preferred Share Issuances | The following table summarizes the Company’s preferred share issuances (the “Series”): Preferred Share Offering Date of Issuance Number of Depositary Shares Issued and Outstanding (1) Liquidation Preference Underwriting Discounts Net Proceeds 7.00 % Series A fixed-to-floating rate cumulative redeemable perpetual preferred shares (“Series A”) (2) April 2021 6,000,000 $ 150,000 $ 5,292 $ 144,708 6.25 % Series B fixed rate cumulative redeemable perpetual preferred shares (“Series B”) (3) August 2021 6,000,000 150,000 5,128 144,872 Total 12,000,000 $ 300,000 $ 10,420 $ 289,580 (1) Each depositary share representing a 1/1,000 th interest in a preferred share, $ 25,000 liquidation preference per share (equivalent to $ 25.00 per depositary share). (2) Series A have no maturity date and are redeemable from June 15, 2026 by the Company. (3) Series B have no maturity date and are redeemable from December 15, 2026 by the Company. |
Summary of Company's Board of Directors Approved and Declared Cash Dividend | The Company’s board of directors approved and declared the following quarterly preferred cash dividends during the three and six months ended June 30, 2023 and 2022 on its issued and outstanding preferred shares: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Preferred Share Offering Aggregate Payment Per Depositary Share Payment (1) Aggregate Payment Per Depositary Share Payment (1) Aggregate Payment Per Depositary Share Payment (1) Aggregate Payment Per Depositary Share Payment (1) Series A $ 2,625 $ 0.44 $ 2,625 $ 0.44 $ 5,250 $ 0.44 $ 5,250 $ 0.44 Series B $ 2,344 $ 0.39 $ 2,344 $ 0.39 $ 4,688 $ 0.39 $ 4,688 $ 0.39 Total $ 4,969 $ 4,969 $ 9,938 $ 9,938 (1) Rounded to the nearest whole cent. |
Common Share | |
Class Of Stock [Line Items] | |
Summary of Company's Board of Directors Approved and Declared Cash Dividend | The Company’s board of directors approved and declared the following cash dividends paid during the three and six months ended June 30, 2023 and 2022 on its issued and outstanding common shares: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Aggregate Payment Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment Per Share Payment Aggregate Payment Per Share Payment Common share dividends $ 12,533 $ 0.30 $ 11,804 $ 0.25 $ 25,398 $ 0.30 $ 23,858 $ 0.25 As of June 30, 2023, the Company had accrued dividends of $ 1,010 for unvested performance restricted share units with dividend equivalent rights, which are paid when the associated award vests at the end of the performance period. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator of Basic Earnings Per Share ("EPS") With That of Diluted EPS | A reconciliation of the numerator and denominator of basic EPS with that of diluted EPS is reported as follows: Three Months Ended Six Months Ended June 30, June 30, Share amounts in thousands 2023 2022 2023 2022 Numerator: Net income attributable to common shareholders $ 51,332 $ 78,590 $ 104,958 $ 151,295 Denominator: Weighted average common shares outstanding - basic 41,963 47,486 42,536 47,942 Dilutive share options, RSU and PSU 899 819 829 857 Weighted average common shares outstanding - diluted 42,862 48,305 43,365 48,799 Net income attributable to common shareholders per common share: Basic $ 1.22 $ 1.66 $ 2.47 $ 3.16 Diluted $ 1.20 $ 1.63 $ 2.42 $ 3.10 Share options, RSU and PSU excluded from the computation of 111 285 401 221 |
Nature of Business - Additional
Nature of Business - Additional Information (Detail) - Segment | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | 3 | 3 | 3 | 3 |
Basis of Presentation and Acc_4
Basis of Presentation and Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Lessee | Jun. 30, 2022 USD ($) Lessee | Dec. 31, 2022 USD ($) | |
Accounting Policies And Recent Accounting Pronouncements [Line Items] | |||||
Investments in marketable equity securities with readily determinable fair values | $ 0 | $ 0 | $ 1,411,000 | ||
Total Lease Rental Income | Customer Concentration Risk | |||||
Accounting Policies And Recent Accounting Pronouncements [Line Items] | |||||
Number of lessees who made greater than 10% of lease rental | Lessee | 0 | 0 | |||
Containers held for sale | Fair Value, Inputs, Level 2 | |||||
Accounting Policies And Recent Accounting Pronouncements [Line Items] | |||||
Assets measured at fair value on non-recurring basis | 4,365,000 | $ 4,365,000 | $ 3,556,000 | ||
Containers | |||||
Accounting Policies And Recent Accounting Pronouncements [Line Items] | |||||
Impairment charges of long lived assets held for use | 0 | $ 0 | 0 | $ 0 | |
Impairment (recovery) charges to write-off containers | 0 | 1,068,000 | 0 | 1,068,000 | |
Gain on container recovery | 827,000 | 827,000 | |||
Containers for Sale | |||||
Accounting Policies And Recent Accounting Pronouncements [Line Items] | |||||
Container impairment charges (reversals) to write down value, held for sale, net of reversals | $ 66,000 | $ 253,000 | $ 1,811,000 | $ 603,000 |
Schedule of Concentration Risk
Schedule of Concentration Risk of Total Lease Rental Income (Detail) - Total Fleet Lease Rental Income - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Customer A | ||||
Capital Leased Assets [Line Items] | ||||
Percentage of lease rental income | 25.50% | 24.50% | 25.50% | 24% |
Customer B | ||||
Capital Leased Assets [Line Items] | ||||
Percentage of lease rental income | 11.80% | 15.60% | 11.70% | 15.10% |
Customer C | ||||
Capital Leased Assets [Line Items] | ||||
Percentage of lease rental income | 10.90% | 10.70% | 10.80% | 10.80% |
Customer D | ||||
Capital Leased Assets [Line Items] | ||||
Percentage of lease rental income | 4.60% | 13.50% | 4.70% | 11.30% |
Managed Container Fleet - Addit
Managed Container Fleet - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Managed Containers | ||
Property Plant And Equipment [Line Items] | ||
Containers, leaseback financial liability | $ 14,425 | $ 14,841 |
Schedule of Company's Leasing E
Schedule of Company's Leasing Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Containers, cost | $ 6,275,100 | $ 6,394,791 |
Containers, accumulated depreciation | (2,092,858) | (2,029,667) |
Containers, net book value | 4,182,242 | 4,365,124 |
Containers - Owned Fleet | ||
Property Plant And Equipment [Line Items] | ||
Containers, cost | 6,258,690 | 6,378,374 |
Containers, accumulated depreciation | (2,090,449) | (2,027,743) |
Containers, net book value | 4,168,241 | 4,350,631 |
Containers - Managed Fleet | ||
Property Plant And Equipment [Line Items] | ||
Containers, cost | 16,410 | 16,417 |
Containers, accumulated depreciation | (2,409) | (1,924) |
Containers, net book value | $ 14,001 | $ 14,493 |
Summary of Total Lease Manageme
Summary of Total Lease Management Fee Income from Managed Fleet, Including Management Fees Earned from Acquisition Fees and Sales Commissions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Lease rental income - managed fleet | $ 192,163 | $ 203,232 | $ 387,064 | $ 401,950 |
Managed Fleet | ||||
Disaggregation Of Revenue [Line Items] | ||||
Lease rental income - managed fleet | 10,693 | 12,678 | 21,803 | 25,319 |
Less: distribution expense to managed fleet container investors | (9,507) | (11,302) | (19,432) | (22,475) |
Less: depreciation and interest expense on managed containers purchased on or after January 1, 2019 | (447) | (458) | (890) | (911) |
Leasing | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 739 | 918 | 1,481 | 1,933 |
Other Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 710 | 673 | 1,454 | 1,205 |
Total | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 1,449 | $ 1,591 | $ 2,935 | $ 3,138 |
Summary of Reconciliation of Ba
Summary of Reconciliation of Balance Sheet Accounts From the Managed Fleet to Total Amount in Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Reconciliation Of Current Assets And Liabilities [Line Items] | ||
Total accounts receivable, net | $ 118,931 | $ 114,805 |
Total prepaid expenses and other current assets | 8,100 | 16,703 |
Total accounts payable and accrued expenses | 21,363 | 24,160 |
Total container contracts payable | 72,618 | 6,648 |
Owned Fleet | ||
Reconciliation Of Current Assets And Liabilities [Line Items] | ||
Total accounts receivable, net | 111,519 | 107,457 |
Total prepaid expenses and other current assets | 8,043 | 16,614 |
Total accounts payable and accrued expenses | 20,432 | 22,868 |
Total container contracts payable | 72,618 | 6,648 |
Managed Fleet | ||
Reconciliation Of Current Assets And Liabilities [Line Items] | ||
Total accounts receivable, net | 7,412 | 7,348 |
Total prepaid expenses and other current assets | 57 | 89 |
Total accounts payable and accrued expenses | $ 931 | $ 1,292 |
Transactions with Affiliates _3
Transactions with Affiliates and Container Investors - Additional Information (Detail) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Due from affiliates, net | $ 3,040,000 | $ 2,758,000 |
Due to container investors, net | 14,879,000 | 16,132,000 |
Affiliated Container Investors | ||
Related Party Transaction [Line Items] | ||
Due to container investors, net | $ 0 | $ 0 |
Summary of Due to Container Inv
Summary of Due to Container Investors, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Distributions due to container investors on lease rentals collected, net of container expenses paid and management fees | $ 8,341 | $ 9,987 |
Due to container investors, net | 14,879 | 16,132 |
Managed Fleet | ||
Related Party Transaction [Line Items] | ||
Accounts receivable | 7,412 | 7,348 |
Prepaid expenses and other current assets | 57 | 89 |
Accounts payable and accrued expenses | (931) | (1,292) |
Due from to related party | $ 6,538 | $ 6,145 |
Schedule of Lease Rental Income
Schedule of Lease Rental Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Lessor Lease Description [Line Items] | ||||
Lease rental income - operating leases | $ 150,207 | $ 161,838 | $ 301,659 | $ 323,025 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Lease Rental Income | Lease Rental Income | Lease Rental Income | Lease Rental Income |
Interest income on net investment in finance leases | $ 26,025 | $ 27,102 | $ 52,512 | $ 54,560 |
Interest income on container leaseback financing receivable | 11,827 | 10,733 | 23,665 | 17,752 |
Variable lease revenue | 4,104 | 3,559 | 9,228 | 6,613 |
Total lease rental income | 192,163 | 203,232 | 387,064 | 401,950 |
Owned Fleet | ||||
Lessor Lease Description [Line Items] | ||||
Lease rental income - operating leases | 140,050 | 149,493 | 281,128 | 298,324 |
Interest income on net investment in finance leases | 26,025 | 27,102 | 52,512 | 54,560 |
Interest income on container leaseback financing receivable | 11,827 | 10,733 | 23,665 | 17,752 |
Variable lease revenue | 3,568 | 3,226 | 7,956 | 5,995 |
Total lease rental income | 181,470 | 190,554 | 365,261 | 376,631 |
Managed Fleet | ||||
Lessor Lease Description [Line Items] | ||||
Lease rental income - operating leases | 10,157 | 12,345 | 20,531 | 24,701 |
Variable lease revenue | 536 | 333 | 1,272 | 618 |
Total lease rental income | $ 10,693 | $ 12,678 | $ 21,803 | $ 25,319 |
Leases - Lessor - Additional In
Leases - Lessor - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Lessor Disclosure [Abstract] | ||||
Direct financing and sales-type leases, gain (loss) | $ 20 | $ 1,172 | $ (125) | $ 1,172 |
Components of net Investment in
Components of net Investment in Direct Financing and Sales-Type Leases (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | |||
Future minimum lease payments receivable | $ 2,370,152 | $ 2,487,365 | |
Residual value of containers | 47,010 | 47,686 | |
Less: unearned income | (661,325) | (713,736) | |
Net investment in finance leases | [1] | 1,755,837 | 1,821,315 |
Less: Allowance for credit losses | (892) | (1,279) | |
Net investment in finance leases, net | [2] | 1,754,945 | 1,820,036 |
Amounts due within one year | 130,681 | 130,913 | |
Amounts due beyond one year | $ 1,624,264 | $ 1,689,123 | |
[1] One major customer represented 81.5 % and 80.8 % of the Company’s finance leases portfolio as of June 30, 2023 and December 31, 2022, respectively. No other customer represented more than 10% of the Company’s finance leases portfolio in each of those periods. As of June 30, 2023 and December 31, 2022, the fair value of net investment in finance leases (including the short-term balance) was approximately $ 1,576,494 and $ 1,659,155 , respectively, and was measured using Level 2 inputs. |
Components of net Investment _2
Components of net Investment in Direct Financing and Sales-Type Leases (Parenthetical) (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) Customer | Dec. 31, 2022 USD ($) Customer | |
Capital Leased Assets [Line Items] | ||
Number of customers represent direct financing and sales-type leases portfolio | Customer | 1 | 1 |
Fair value of net investment in finance leases | $ | $ 1,576,494 | $ 1,659,155 |
Customer One | ||
Capital Leased Assets [Line Items] | ||
Percentage of direct financing and sales-type leases portfolio | 81.50% | 80.80% |
Summary of Future Minimum Payme
Summary of Future Minimum Payments Receivable Under Container Leaseback Financing Receivable (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Lessor Disclosure [Abstract] | |||
Future minimum payments receivable | $ 1,295,692 | $ 1,179,515 | |
Less: unearned income | (401,301) | (354,769) | |
Container leaseback financing receivable | [1] | 894,391 | 824,746 |
Less: Allowance for credit losses | (63) | (114) | |
Container leaseback financing receivable, net | [2] | 894,328 | 824,632 |
Amounts due within one year | 59,519 | 53,652 | |
Amounts due beyond one year | $ 834,809 | $ 770,980 | |
[1] One major customer represented 98.2 % and 97.4 % of the Company’s container leaseback financing receivable portfolio as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023 and December 31, 2022, the fair value of container leaseback financing receivable (including the short-term balance) was approximately $ 769,422 and $ 732,951 , respectively, and was measured using Level 2 inputs. |
Summary of Future Minimum Pay_2
Summary of Future Minimum Payments Receivable Under Container Leaseback Financing Receivable (Parenthetical) (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) Customer | Dec. 31, 2022 USD ($) Customer | |
Lessor Lease Description [Line Items] | ||
Number of customers represent container leaseback financing receivable portfolio | Customer | 1 | 1 |
Fair value of container leaseback financing receivable | $ | $ 769,422 | $ 732,951 |
Customer One | ||
Lessor Lease Description [Line Items] | ||
Percentage of container leaseback financing receivable portfolio | 98.20% | 97.40% |
Leases - Lessee - Additional In
Leases - Lessee - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Lessee Lease Description [Line Items] | |||||
Right-of-use lease assets | $ 6,443 | $ 6,443 | $ 7,299 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets Noncurrent | Other Assets Noncurrent | Other Assets Noncurrent | ||
Operating lease liabilities | $ 8,096 | $ 8,096 | $ 9,112 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities [Member] | Other Liabilities [Member] | Other Liabilities [Member] | ||
Operating lease expense | $ 588 | $ 578 | $ 1,174 | $ 1,150 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable, allowance | $ 1,633 | $ 1,582 |
Finance Leases | Accounts Receivable | Credit Concentration Risk | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Concentration risk percentage | 88.90% | |
Container Leaseback Financing Receivable | Accounts Receivable | Credit Concentration Risk | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Concentration risk percentage | 98.20% | |
Billed | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable, allowance | $ 1,633 | 1,582 |
Billed | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable, allowance | 660 | 586 |
Unbilled | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Net investment in finance leases, allowance for credit loss | 892 | 1,279 |
Unbilled | Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Container leaseback financing receivable, allowance for credit losses | $ 63 | $ 114 |
Allowance for Credit Losses - S
Allowance for Credit Losses - Summary of Net Investment in Finance Leases and Container Leaseback Financing Receivable (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Net investment in finance leases, net | [1] | $ 1,754,945 | $ 1,820,036 |
Finance Leases | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Six Months Ended June 30, 2023 | 1,070 | ||
2022 | 129,332 | ||
2021 | 865,146 | ||
2020 | 582,551 | ||
2019 | 127,024 | ||
Prior | 50,714 | ||
Net investment in finance leases, net | 1,755,837 | ||
Container Leaseback Financing Receivable | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Six Months Ended June 30, 2023 | 96,064 | ||
2022 | 493,971 | ||
2021 | 14,556 | ||
2020 | 97,690 | ||
2019 | 192,110 | ||
Net investment in finance leases, net | 894,391 | ||
Tier 1 | Finance Leases | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
2022 | 94,163 | ||
2021 | 787,204 | ||
2020 | 550,235 | ||
2019 | 94,507 | ||
Prior | 35,473 | ||
Net investment in finance leases, net | 1,561,582 | ||
Tier 1 | Container Leaseback Financing Receivable | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Six Months Ended June 30, 2023 | 96,064 | ||
2022 | 493,971 | ||
2021 | 11,148 | ||
2020 | 97,690 | ||
2019 | 179,603 | ||
Net investment in finance leases, net | 878,476 | ||
Tier 2 | Finance Leases | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Six Months Ended June 30, 2023 | 86 | ||
2022 | 26,975 | ||
2021 | 72,209 | ||
2020 | 30,747 | ||
2019 | 27,288 | ||
Prior | 15,023 | ||
Net investment in finance leases, net | 172,328 | ||
Tier 2 | Container Leaseback Financing Receivable | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
2021 | 3,408 | ||
2019 | 12,507 | ||
Net investment in finance leases, net | 15,915 | ||
Tier 3 | Finance Leases | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Six Months Ended June 30, 2023 | 984 | ||
2022 | 8,194 | ||
2021 | 5,733 | ||
2020 | 1,569 | ||
2019 | 5,229 | ||
Prior | 218 | ||
Net investment in finance leases, net | $ 21,927 | ||
[1] As of June 30, 2023 and December 31, 2022, the fair value of net investment in finance leases (including the short-term balance) was approximately $ 1,576,494 and $ 1,659,155 , respectively, and was measured using Level 2 inputs. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rates | 2.30% | 2.40% | 2.40% | 2.20% |
Debt Obligation (Detail)
Debt Obligation (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | ||
Debt Instrument [Line Items] | |||
Long term debt | [1] | $ 5,295,075 | $ 5,539,803 |
Unamortized debt premiums and discounts | (30,226) | (34,884) | |
Debt, net of unamortized costs | 5,264,849 | 5,504,919 | |
Debt, net of unamortized costs - current | 392,720 | 377,898 | |
Debt, net of unamortized costs - non-current | 4,872,129 | 5,127,021 | |
TL Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 1,309,858 | $ 1,367,858 | |
Weighted average variable interest rate | 6.53% | 5.78% | |
Final Maturity | Aug. 31, 2027 | ||
TL 2019 Term Loan | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 121,503 | $ 127,293 | |
Weighted average variable interest rate | 3.50% | 3.50% | |
Final Maturity | Dec. 31, 2026 | ||
TL 2021-1 Term loan | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 57,515 | $ 60,314 | |
Weighted average variable interest rate | 2.65% | 2.65% | |
Final Maturity | Feb. 29, 2028 | ||
TL 2021-2 Term Loan | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 184,825 | $ 192,202 | |
Weighted average variable interest rate | 2.90% | 2.90% | |
Final Maturity | Oct. 31, 2028 | ||
TMCL II Secured Debt Facility | |||
Debt Instrument [Line Items] | |||
Long term debt | [2] | $ 1,206,041 | $ 1,239,440 |
Weighted average variable interest rate | [2] | 6.75% | 6% |
Final Maturity | [2] | Nov. 30, 2028 | |
TMCL VII 2020-1 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 306,577 | $ 332,413 | |
Weighted average variable interest rate | 3.06% | 3.06% | |
Final Maturity | Aug. 31, 2045 | ||
TMCL VII 2020-2 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 446,788 | $ 476,279 | |
Weighted average variable interest rate | 2.26% | 2.26% | |
Final Maturity | Sep. 30, 2045 | ||
TMCL VII 2020-3 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 165,695 | $ 175,750 | |
Weighted average variable interest rate | 2.15% | 2.15% | |
Final Maturity | Sep. 30, 2045 | ||
TMCL VII 2021-1 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 445,948 | $ 467,881 | |
Weighted average variable interest rate | 1.72% | 1.72% | |
Final Maturity | Feb. 28, 2046 | ||
TMCL VII 2021-2 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 538,325 | $ 564,373 | |
Weighted average variable interest rate | 2.27% | 2.27% | |
Final Maturity | Apr. 30, 2046 | ||
TMCL VII 2021-3 Bonds | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 512,000 | $ 536,000 | |
Weighted average variable interest rate | 1.98% | 1.98% | |
Final Maturity | Aug. 31, 2046 | ||
[1] The fair value of total debt based on the borrowing rates available to the Company was approximately $ 4,859,159 and $ 5,107,874 at June 30, 2023 and December 31, 2022, respectively, and was measured using Level 2 inputs. Final maturity of the TMCL II Secured Debt Facility is based on the assumption that the facility will not be extended on its associated conversion date. |
Debt Obligation (Parenthetical)
Debt Obligation (Parenthetical) (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Fair value of long-term debt | $ 4,859,159 | $ 5,107,874 |
Debt and Derivative Instrumen_3
Debt and Derivative Instruments - Summary of Outstanding Fixed-Rate and Floating-Rate Debt (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Including impact of derivative instruments [Member] | |
Debt Instrument [Line Items] | |
Balance Outstanding | $ 5,295,075 |
Contractual Weighted Average Interest Rate | 2.99% |
Fixed-rate debt | Excluding impact of derivative instruments [Member] | |
Debt Instrument [Line Items] | |
Balance Outstanding | $ 2,779,176 |
Contractual Weighted Average Interest Rate | 2.31% |
Fixed-rate debt | Including impact of derivative instruments [Member] | |
Debt Instrument [Line Items] | |
Balance Outstanding | $ 2,779,176 |
Contractual Weighted Average Interest Rate | 2.31% |
Floating-rate debt | Excluding impact of derivative instruments [Member] | |
Debt Instrument [Line Items] | |
Balance Outstanding | $ 2,515,899 |
Contractual Weighted Average Interest Rate | 6.63% |
Hedged floating-rate debt | Including impact of derivative instruments [Member] | |
Debt Instrument [Line Items] | |
Balance Outstanding | $ 2,084,869 |
Contractual Weighted Average Interest Rate | 3.16% |
Total fixed and hedged debt | Including impact of derivative instruments [Member] | |
Debt Instrument [Line Items] | |
Balance Outstanding | $ 4,864,045 |
Contractual Weighted Average Interest Rate | 2.67% |
Unhedged floating-rate debt | Including impact of derivative instruments [Member] | |
Debt Instrument [Line Items] | |
Balance Outstanding | $ 431,030 |
Contractual Weighted Average Interest Rate | 6.57% |
Debt and Derivative Instrumen_4
Debt and Derivative Instruments - Additional Information (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Borrowings outstanding | $ 5,295,075 |
Designated | Interest Rate Swap | |
Debt Instrument [Line Items] | |
Aggregate commitment amount | 6,179,176 |
Estimated amount to be reclassified from AOCI to interest expense | 69,790 |
Designated | Interest Rate Swap | London Interbank Offered Rate (LIBOR) | Forward Contracts | |
Debt Instrument [Line Items] | |
Amount in excess of current borrowing base minimum | $ 351,765 |
Summary of Derivative Instrumen
Summary of Derivative Instruments (Detail) - Designated as Hedging Instrument - Interest Rate Swap $ in Thousands | Jun. 30, 2023 USD ($) |
Derivative [Line Items] | |
Notional amounts | $ 2,084,869 |
Amortizing | SOFR | |
Derivative [Line Items] | |
Notional amounts | $ 2,084,869 |
Summary of Derivative Instrum_2
Summary of Derivative Instruments (Parenthetical) (Detail) - Interest Rate Swap - Designated as Hedging Instrument - SOFR - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended |
Feb. 28, 2022 | Jun. 30, 2023 | |
Derivative [Line Items] | ||
Derivative term | December 31, 2033 | |
Fixed interest rate on derivative contracts | 1.96% | |
Minimum | ||
Derivative [Line Items] | ||
Fixed interest rate on derivative contracts | 0.02% | |
Maximum | ||
Derivative [Line Items] | ||
Fixed interest rate on derivative contracts | 3.84% | |
Forward Contracts | ||
Derivative [Line Items] | ||
Derivative term | , 2034 | |
Initial notional amount | $ 100,000 |
Summary of Fair Value of Deriva
Summary of Fair Value of Derivative Instruments on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Instrument, Fair Value Disclosure [Abstract] | ||||
Assets (liabilities), net, Beginning Balances | $ 149,244 | |||
Change in derivative instruments designated as cash flow hedges | $ 45,823 | $ 29,720 | 32,239 | $ 89,100 |
Reclassification of realized gain on derivative instruments designated as cash flow hedges | (18,570) | $ 1,004 | (34,964) | $ 4,295 |
Assets (liabilities), net Ending Balances | $ 146,519 | $ 146,519 |
Summary of Pre-tax Impact of De
Summary of Pre-tax Impact of Derivative Instruments on Condensed Consolidated Statements of Operations (Detail) - Designated - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other comprehensive income (expense) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Pre-tax impact of derivative instruments | $ 45,823 | $ 29,720 | $ 32,239 | $ 89,100 |
Interest income (expense) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Pre-tax impact of derivative instruments | $ 18,570 | $ (1,004) | $ 34,964 | $ (4,295) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | 3 | 3 | 3 | 3 |
Summary of Segment Information
Summary of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Total lease rental income | $ 192,163 | $ 203,232 | $ 387,064 | $ 401,950 | |
Trading container margin | 199 | 447 | 44 | 1,309 | |
Gain on sale of owned fleet containers, net | 7,703 | 23,213 | 17,251 | 39,126 | |
Depreciation | 70,527 | 142,365 | |||
Depreciation and amortization | 70,527 | 72,957 | 142,365 | 145,450 | |
Container lessee default expense, net | 12 | 435 | 51 | 555 | |
Interest expense | 42,138 | 37,593 | 84,268 | 72,902 | |
Segment income (loss) before income taxes | 57,647 | 85,606 | 117,718 | 164,919 | |
Income tax (expense) benefit | (1,346) | (2,047) | (2,822) | (3,686) | |
Total assets | 7,435,156 | 7,895,527 | 7,435,156 | 7,895,527 | $ 7,613,234 |
Purchase of containers and fixed assets | 35,491 | 92,109 | 38,435 | 195,071 | |
Payments on container leaseback financing receivable | 96,740 | 137,372 | 96,740 | 533,867 | |
Container Ownership | |||||
Segment Reporting Information [Line Items] | |||||
Total lease rental income | 180,519 | 189,715 | 363,376 | 375,068 | |
Gain on sale of owned fleet containers, net | 7,703 | 23,017 | 17,251 | 38,930 | |
Depreciation | 71,993 | 145,302 | |||
Depreciation and amortization | 74,429 | 148,462 | |||
Container lessee default expense, net | 12 | 435 | 51 | 555 | |
Interest expense | 41,936 | 37,381 | 83,865 | 72,479 | |
Segment income (loss) before income taxes | 47,389 | 72,749 | 97,709 | 139,962 | |
Income tax (expense) benefit | (1,913) | (2,279) | (3,671) | (3,611) | |
Total assets | 7,388,210 | 7,839,857 | 7,388,210 | 7,839,857 | |
Purchase of containers and fixed assets | 35,494 | 92,021 | 38,438 | 192,952 | |
Payments on container leaseback financing receivable | 96,740 | 137,372 | 96,740 | 533,867 | |
Container Management | |||||
Segment Reporting Information [Line Items] | |||||
Total lease rental income | 10,915 | 12,837 | 22,232 | 25,602 | |
Depreciation | 406 | 800 | |||
Depreciation and amortization | 432 | 805 | |||
Interest expense | 202 | 212 | 403 | 423 | |
Segment income (loss) before income taxes | 7,385 | 11,070 | 13,038 | 24,863 | |
Income tax (expense) benefit | 567 | 232 | 849 | (75) | |
Total assets | 178,516 | 241,930 | 178,516 | 241,930 | |
Purchase of containers and fixed assets | (3) | 88 | (3) | 2,119 | |
Container Resale | |||||
Segment Reporting Information [Line Items] | |||||
Trading container margin | 199 | 447 | 44 | 1,309 | |
Segment income (loss) before income taxes | 3,747 | 3,849 | 7,152 | 6,856 | |
Total assets | 8,320 | 7,343 | 8,320 | 7,343 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Segment income (loss) before income taxes | (1,923) | (2,023) | (3,822) | (3,046) | |
Total assets | 5,046 | 5,933 | 5,046 | 5,933 | |
Management Fees - Non-Leasing | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 710 | 673 | 1,454 | 1,205 | |
Management Fees - Non-Leasing | External Customers | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 710 | 673 | 1,454 | 1,205 | |
Management Fees - Non-Leasing | Container Management | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 16,156 | 20,350 | 30,920 | 43,057 | |
Management Fees - Non-Leasing | Container Management | External Customers | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 48 | 62 | 97 | 119 | |
Management Fees - Non-Leasing | Container Resale | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 3,502 | 3,426 | 7,238 | 6,010 | |
Management Fees - Non-Leasing | Container Resale | External Customers | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 662 | 611 | 1,357 | 1,086 | |
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Total lease rental income | 729 | 680 | 1,456 | 1,280 | |
Gain on sale of owned fleet containers, net | 196 | 196 | |||
Depreciation | (1,872) | (3,737) | |||
Depreciation and amortization | (1,904) | (3,817) | |||
Segment income (loss) before income taxes | 1,049 | (39) | 3,641 | (3,716) | |
Total assets | (144,936) | (199,536) | (144,936) | (199,536) | |
Eliminations | Management Fees - Non-Leasing | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | $ (19,658) | $ (23,776) | $ (38,158) | $ (49,067) |
Segment Information Geographic
Segment Information Geographic Allocation of Lease Rental Income and Management Fees (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total lease rental income | $ 192,163 | $ 203,232 | $ 387,064 | $ 401,950 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Total lease rental income | 92,541 | 95,999 | 186,234 | 188,935 |
Asia | ||||
Segment Reporting Information [Line Items] | ||||
Total lease rental income | 90,726 | 97,998 | 183,137 | 195,263 |
North / South America | ||||
Segment Reporting Information [Line Items] | ||||
Total lease rental income | 8,661 | 8,949 | 17,237 | 17,275 |
All other international | ||||
Segment Reporting Information [Line Items] | ||||
Total lease rental income | 235 | 286 | 456 | 477 |
Total Management Fees | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,449 | 1,591 | 2,935 | 3,138 |
Total Management Fees | Non Leasing From External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 710 | 673 | 1,454 | 1,205 |
Total Management Fees | Non Leasing From External Customers | Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 419 | 339 | 849 | 614 |
Total Management Fees | Non Leasing From External Customers | North / South America | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 20 | 9 | 40 | 17 |
Total Management Fees | Non Leasing From External Customers | Bermuda | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 264 | 315 | 550 | 555 |
Total Management Fees | Non Leasing From External Customers | All other international | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 7 | $ 10 | $ 15 | $ 19 |
Segment Information Geographi_2
Segment Information Geographic Allocation of Trading Container Sales Proceeds and Gains on Sale of Owned Fleet Containers Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Gain on sale of owned fleet containers, net | $ 7,703 | $ 23,213 | $ 17,251 | $ 39,126 |
Trading Containers | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 4,849 | 5,392 | 8,815 | 13,010 |
North / South America | ||||
Segment Reporting Information [Line Items] | ||||
Gain on sale of owned fleet containers, net | 2,161 | 4,006 | 5,198 | 6,701 |
North / South America | Trading Containers | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,944 | 2,644 | 5,322 | 5,624 |
Asia | ||||
Segment Reporting Information [Line Items] | ||||
Gain on sale of owned fleet containers, net | 4,829 | 14,836 | 10,572 | 24,827 |
Asia | Trading Containers | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,573 | 2,115 | 2,847 | 5,972 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Gain on sale of owned fleet containers, net | 713 | 4,371 | 1,481 | 7,598 |
Europe | Trading Containers | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 332 | $ 633 | $ 646 | $ 1,414 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Commitments And Contingencies Disclosure [Line Items] | ||
Restricted cash | $ 102,336,000 | $ 102,591,000 |
Containers orders placed | 23,850,000 | |
Fleet Management Agreements | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Future minimum lease payment obligations | $ 0 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 6 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity Class Of Treasury Stock [Line Items] | ||||||
Increase in common stock repurchase program, authorized amount | $ 250,000,000 | $ 100,000,000 | $ 75,000,000 | |||
Purchase of treasury shares (in shares) | 2,414,893 | 2,375,508 | ||||
Common stock repurchased, average price per share | $ 34.83 | $ 34.35 | ||||
Purchase of treasury shares | $ 84,105,000 | $ 81,603,000 | ||||
Common stock repurchased program, amount remained available for repurchase | $ 38,592,000 | |||||
Redemption description | Each Series of preferred shares may be redeemed at the Company’s option, at any time after approximately five years from original issuance, for cash at a redemption price of $25.00 per depositary share plus an amount equal to all accumulated and unpaid dividends, whether or not declared. | |||||
Redemption price per depositary share | $ 25 | |||||
Preferred stock shares, liquidation preference per share | $ 25,000 | $ 25,000 | ||||
Cumulative unpaid preferred dividends | $ 854,000 | |||||
RSU | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Accrued dividends | $ 1,010,000 | |||||
Maximum | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Common stock repurchased program, authorized amount | $ 25,000,000 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Preferred Share Issuances (Detail) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Aug. 31, 2021 | Apr. 30, 2021 | Jun. 30, 2023 | ||
Class Of Stock [Line Items] | ||||
Number of Depositary Shares Issued and Outstanding | [1] | 12,000,000 | ||
Liquidation Preference | $ 300,000 | |||
Underwriting Discounts | 10,420 | |||
Net Proceeds | $ 289,580 | |||
Series A | ||||
Class Of Stock [Line Items] | ||||
Date of Issuance | [2] | 2021-04 | ||
Number of Depositary Shares Issued and Outstanding | [1],[2] | 6,000,000 | ||
Liquidation Preference | [2] | $ 150,000 | ||
Underwriting Discounts | [2] | 5,292 | ||
Net Proceeds | [2] | $ 144,708 | ||
Series B | ||||
Class Of Stock [Line Items] | ||||
Date of Issuance | [3] | 2021-08 | ||
Number of Depositary Shares Issued and Outstanding | [1],[3] | 6,000,000 | ||
Liquidation Preference | [3] | $ 150,000 | ||
Underwriting Discounts | [3] | 5,128 | ||
Net Proceeds | [3] | $ 144,872 | ||
[1] Each depositary share representing a 1/1,000 th interest in a preferred share, $ 25,000 liquidation preference per share (equivalent to $ 25.00 per depositary share). Series A have no maturity date and are redeemable from June 15, 2026 by the Company. Series B have no maturity date and are redeemable from December 15, 2026 by the Company. |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Preferred Share Issuances (Parenthetical) (Detail) - $ / shares | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Aug. 31, 2021 | Apr. 30, 2021 | Jun. 30, 2023 | Dec. 31, 2022 | |
Class Of Stock [Line Items] | ||||
Preferred stock shares, liquidation preference per share | $ 25,000 | $ 25,000 | ||
Depositary per share equivalent to liquidation preference per share | $ 25 | $ 25 | ||
Series A | ||||
Class Of Stock [Line Items] | ||||
Dividend rate | 7% | |||
Preferred shares redeemable date | Jun. 15, 2026 | |||
Series B | ||||
Class Of Stock [Line Items] | ||||
Dividend rate | 6.25% | |||
Preferred shares redeemable date | Dec. 15, 2026 |
Shareholders' Equity - Summar_3
Shareholders' Equity - Summary of Company's Board of Directors Approved and Declared a Quarterly Preferred Cash Dividend (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Class Of Stock [Line Items] | |||||
Aggregate Payment | $ 4,969 | $ 4,969 | $ 9,938 | $ 9,938 | |
Series A | |||||
Class Of Stock [Line Items] | |||||
Aggregate Payment | $ 2,625 | $ 2,625 | $ 5,250 | $ 5,250 | |
Per Depositary Share Payment | [1] | $ 0.44 | $ 0.44 | $ 0.44 | $ 0.44 |
Series B | |||||
Class Of Stock [Line Items] | |||||
Aggregate Payment | $ 2,344 | $ 2,344 | $ 4,688 | $ 4,688 | |
Per Depositary Share Payment | [1] | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.39 |
[1] Rounded to the nearest whole cent. |
Shareholders' Equity - Summar_4
Shareholders' Equity - Summary of Company's Board of Directors Approved and Declared Cash Dividends (Detail) - Common Share - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Class Of Stock [Line Items] | ||||
Aggregate Payment | $ 12,533 | $ 11,804 | $ 25,398 | $ 23,858 |
Per Share Payment | $ 0.30 | $ 0.25 | $ 0.30 | $ 0.25 |
Reconciliation of Numerator and
Reconciliation of Numerator and Denominator of Basic Earnings per Share ("EPS") with that of Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net income attributable to common shareholders | $ 51,332 | $ 78,590 | $ 104,958 | $ 151,295 |
Denominator: | ||||
Weighted average common shares outstanding - basic | 41,963 | 47,486 | 42,536 | 47,942 |
Dilutive share options, RSU and PSU | 899 | 819 | 829 | 857 |
Weighted average common shares outstanding - diluted | 42,862 | 48,305 | 43,365 | 48,799 |
Net income attributable to common shareholders per common share: | ||||
Basic | $ 1.22 | $ 1.66 | $ 2.47 | $ 3.16 |
Diluted | $ 1.20 | $ 1.63 | $ 2.42 | $ 3.10 |
Share options, RSU and PSU excluded from the computation of diluted EPS because they were anti-dilutive | 111 | 285 | 401 | 221 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | 1 Months Ended | ||||
Jul. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Subsequent Event [Line Items] | |||||
Increase in common stock repurchase program, authorized amount | $ 250,000,000 | $ 100,000,000 | $ 75,000,000 | ||
Maximum | |||||
Subsequent Event [Line Items] | |||||
Common stock repurchased program, authorized amount | $ 25,000,000 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Common stock, dividends, per share, declared | $ 0.30 | ||||
Cash dividend payable date | Sep. 15, 2023 | ||||
Increase in common stock repurchase program, authorized amount | $ 100,000,000 | ||||
Subsequent Event | Series A Preferred Shares | |||||
Subsequent Event [Line Items] | |||||
Preferred cash dividend per depositary share | $ 0.44 | ||||
Preferred cash dividend per depositary share total aggregate amount payable | $ 2,625,000 | ||||
Subsequent Event | Series B Preferred Shares | |||||
Subsequent Event [Line Items] | |||||
Preferred cash dividend per depositary share | $ 0.39 | ||||
Preferred cash dividend per depositary share total aggregate amount payable | $ 2,344,000 | ||||
Subsequent Event | Minimum | |||||
Subsequent Event [Line Items] | |||||
Common stock repurchased program, authorized amount | 450,000,000 | ||||
Subsequent Event | Maximum | |||||
Subsequent Event [Line Items] | |||||
Common stock repurchased program, authorized amount | $ 550,000,000 |