Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2021 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2021 |
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 Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Lease rental income | $ 169,244,000 | $ 145,478,000 |
Trading container margin | 2,166,000 | 649,000 |
Gain on sale of owned fleet containers, net | 12,358,000 | 5,794,000 |
Operating expenses: | ||
Distribution expense to managed fleet container investors | 13,495,000 | 14,163,000 |
Depreciation expense | 65,806,000 | 66,834,000 |
Amortization expense | 800,000 | 564,000 |
General and administrative expense | 10,900,000 | 10,138,000 |
Bad debt (recovery) expense, net | (1,127,000) | 2,045,000 |
Container lessee default recovery, net | (3,968,000) | (12,000) |
Total operating expenses | 92,703,000 | 106,996,000 |
Income from operations | 92,101,000 | 46,409,000 |
Other (expense) income: | ||
Interest expense | (29,106,000) | (36,112,000) |
Write-off of unamortized debt issuance costs | (267,000) | (122,000) |
Interest income | 37,000 | 400,000 |
Realized loss on derivative instruments, net | (2,956,000) | (1,526,000) |
Unrealized gain (loss) on derivative instruments, net | 3,192,000 | (14,937,000) |
Other, net | 115,000 | (53,000) |
Net other expense | (28,985,000) | (52,350,000) |
Income (loss) before income tax and noncontrolling interest | 63,116,000 | (5,941,000) |
Income tax (expense) benefit | (1,066,000) | 833,000 |
Net income (loss) | 62,050,000 | (5,108,000) |
Less: Net loss attributable to the noncontrolling interest | 0 | 729,000 |
Net income (loss) attributable to Textainer Group Holdings Limited common shareholders | $ 62,050,000 | $ (4,379,000) |
Net income (loss) attributable to Textainer Group Holdings Limited common shareholders per share: | ||
Basic | $ 1.24 | $ (0.08) |
Diluted | $ 1.22 | $ (0.08) |
Weighted average shares outstanding (in thousands): | ||
Basic | 50,150 | 56,455 |
Diluted | 50,865 | 56,455 |
Owned Fleet | ||
Revenues: | ||
Lease rental income | $ 154,423,000 | $ 130,072,000 |
Operating expenses: | ||
Direct container expense - owned fleet | 6,797,000 | 13,264,000 |
Managed Fleet | ||
Revenues: | ||
Lease rental income | 14,821,000 | 15,406,000 |
Operating expenses: | ||
Distribution expense to managed fleet container investors | 13,495,000 | 14,163,000 |
Management Fees - Non-Leasing | ||
Revenues: | ||
Revenue | 1,036,000 | 1,484,000 |
Trading Containers | ||
Revenues: | ||
Revenue | 7,611,000 | 9,585,000 |
Cost of trading containers sold | $ (5,445,000) | $ (8,936,000) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Net income (loss) | $ 62,050 | $ (5,108) |
Other comprehensive income (loss), before tax: | ||
Change in derivative instruments designated as cash flow hedges | 4,442 | (8,858) |
Reclassification of realized loss (gain) on derivative instruments designated as cash flow hedges | 1,194 | (62) |
Foreign currency translation adjustments | (46) | (63) |
Comprehensive income (loss), before tax | 67,640 | (14,091) |
Income tax benefit related to items of other comprehensive income (loss) | 36 | 93 |
Comprehensive income (loss), after tax | 67,676 | (13,998) |
Comprehensive loss attributable to the noncontrolling interest | 729 | |
Comprehensive income (loss) attributable to Textainer Group Holdings Limited common shareholders | $ 67,676 | $ (13,269) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 142,345,000 | $ 131,018,000 |
Accounts receivable, net of allowance of $2,088 and $2,663, respectively | 110,994,000 | 108,578,000 |
Net investment in finance leases, net of allowance of $81 and $169, respectively | 87,451,000 | 78,459,000 |
Container leaseback financing receivable, net of allowance of $41 and $98, respectively | 28,495,000 | 27,076,000 |
Trading containers | 5,390,000 | 9,375,000 |
Containers held for sale | 10,890,000 | 15,629,000 |
Prepaid expenses and other current assets | 12,431,000 | 13,713,000 |
Due from affiliates, net | 1,998,000 | 1,509,000 |
Total current assets | 399,994,000 | 385,357,000 |
Restricted cash | 70,276,000 | 74,147,000 |
Containers, net of accumulated depreciation of $1,674,907 and $1,619,591, respectively | 4,416,008,000 | 4,125,052,000 |
Net investment in finance leases, net of allowance of $561 and $1,164, respectively | 983,169,000 | 801,501,000 |
Container leaseback financing receivable, net of allowance of $115 and $326, respectively | 335,259,000 | 336,792,000 |
Fixed assets, net of accumulated depreciation of $13,041 and $12,918, respectively | 628,000 | 746,000 |
Intangible assets, net of accumulated amortization of $48,731 and $47,931, respectively | 1,919,000 | 2,719,000 |
Derivative instruments | 2,188,000 | 47,000 |
Deferred taxes | 1,154,000 | 1,153,000 |
Other assets | 13,117,000 | 13,862,000 |
Total assets | 6,223,712,000 | 5,741,376,000 |
Current liabilities: | ||
Accounts payable and accrued expenses | 17,266,000 | 24,385,000 |
Container contracts payable | 489,922,000 | 231,647,000 |
Other liabilities | 3,596,000 | 2,288,000 |
Due to container investors, net | 24,844,000 | 18,697,000 |
Debt, net of unamortized costs of $7,238 and $8,043, respectively | 295,518,000 | 408,365,000 |
Total current liabilities | 831,146,000 | 685,382,000 |
Debt, net of unamortized costs of $24,140 and $18,639, respectively | 3,998,908,000 | 3,706,979,000 |
Derivative instruments | 20,648,000 | 29,235,000 |
Income tax payable | 10,146,000 | 10,047,000 |
Deferred taxes | 7,429,000 | 6,491,000 |
Other liabilities | 28,731,000 | 16,524,000 |
Total liabilities | 4,897,008,000 | 4,454,658,000 |
Textainer Group Holdings Limited shareholders' equity: | ||
Common shares, $0.01 par value. Authorized 140,000,000 shares; 58,884,261 shares issued and 50,092,911 shares outstanding at 2021; 58,740,919 shares issued and 50,495,789 shares outstanding at 2020 | 590,000 | 587,000 |
Treasury shares, at cost, 8,791,350 and 8,245,130 shares, respectively | (97,017,000) | (86,239,000) |
Additional paid-in capital | 426,804,000 | 416,609,000 |
Accumulated other comprehensive loss | (4,118,000) | (9,744,000) |
Retained earnings | 1,000,445,000 | 938,395,000 |
Total Textainer Group Holdings Limited shareholders’ equity | 1,326,704,000 | 1,259,608,000 |
Noncontrolling interest | 0 | 27,110,000 |
Total equity | 1,326,704,000 | 1,286,718,000 |
Total liabilities and equity | $ 6,223,712,000 | $ 5,741,376,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 2,088 | $ 2,663 |
Net investment in finance leases, allowance current | 81 | 169 |
Container leaseback financing receivable, allowance current | 41 | 98 |
Containers, accumulated depreciation | 1,674,907 | 1,619,591 |
Net investment in finance leases, allowance non current | 561 | 1,164 |
Container leaseback financing receivable, allowance non current | 115 | 326 |
Fixed assets, accumulated depreciation | 13,041 | 12,918 |
Intangible assets, accumulated amortization | 48,731 | 47,931 |
Debt, net of unamortized costs current | 7,238 | 8,043 |
Debt, net of unamortized costs non current | $ 24,140 | $ 18,639 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, Authorized | 140,000,000 | 140,000,000 |
Common shares, issued | 58,884,261 | 58,740,919 |
Common shares, outstanding | 50,092,911 | 50,495,789 |
Treasury shares, at cost, shares | 8,791,350 | 8,245,130 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) | Total | Cumulative Effect Period of Adoption Adjustment | Common shares | Treasury shares | Additional Paid-in capital | Accumulated other comprehensive loss | Retained earnings | Retained earningsCumulative Effect Period of Adoption Adjustment | Total Textainer Group Holdings Limited shareholders' equity | Total Textainer Group Holdings Limited shareholders' equityCumulative Effect Period of Adoption Adjustment | Noncontrolling interest | Noncontrolling interestCumulative Effect Period of Adoption Adjustment |
Beginning Balances at Dec. 31, 2019 | $ 1,285,645,000 | $ 583,000 | $ (17,746,000) | $ 410,595,000 | $ (511,000) | $ 866,458,000 | $ 1,259,379,000 | $ 26,266,000 | ||||
Beginning Balances (ASU 2016-13) at Dec. 31, 2019 | $ (892,000) | $ (885,000) | $ (885,000) | $ (7,000) | ||||||||
Beginning Balances (in shares) at Dec. 31, 2019 | 58,326,555 | (1,508,637) | ||||||||||
Purchase of treasury shares | $ (15,477,000) | $ (15,477,000) | (15,477,000) | |||||||||
Purchase of treasury shares (in shares) | (1,947,443) | (1,947,443) | ||||||||||
Share-based compensation expense | $ 1,071,000 | 1,071,000 | 1,071,000 | |||||||||
Comprehensive (loss) income: | ||||||||||||
Net (loss) income attributable to Textainer Group Holdings Limited common shareholders | (4,379,000) | (4,379,000) | (4,379,000) | |||||||||
Net loss attributable to noncontrolling interest | (729,000) | (729,000) | ||||||||||
Change in derivative instruments designated as cash flow hedges | (8,858,000) | (8,858,000) | (8,858,000) | |||||||||
Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges | (62,000) | (62,000) | (62,000) | |||||||||
Foreign currency translation adjustments | (63,000) | (63,000) | (63,000) | |||||||||
Income tax benefit related to items of other comprehensive (loss) income | 93,000 | 93,000 | 93,000 | |||||||||
Total comprehensive (loss) income | (13,998,000) | |||||||||||
Ending Balances at Mar. 31, 2020 | 1,256,349,000 | $ 583,000 | $ (33,223,000) | 411,666,000 | (9,401,000) | 861,194,000 | 1,230,819,000 | 25,530,000 | ||||
Ending Balances (in shares) at Mar. 31, 2020 | 58,326,555 | (3,456,080) | ||||||||||
Beginning Balances at Dec. 31, 2020 | 1,286,718,000 | $ 587,000 | $ (86,239,000) | 416,609,000 | (9,744,000) | 938,395,000 | 1,259,608,000 | 27,110,000 | ||||
Beginning Balances (in shares) at Dec. 31, 2020 | 58,740,919 | (8,245,130) | ||||||||||
Exercise of share options | 1,842,000 | $ 3,000 | 1,839,000 | 1,842,000 | ||||||||
Exercise of share options (in shares) | 143,342 | |||||||||||
Purchase of treasury shares | $ (10,778,000) | $ (10,778,000) | (10,778,000) | |||||||||
Purchase of treasury shares (in shares) | (546,220) | (546,220) | ||||||||||
Share-based compensation expense | $ 1,334,000 | 1,334,000 | 1,334,000 | |||||||||
Purchase of noncontrolling interest | (20,088,000) | 7,022,000 | 7,022,000 | $ (27,110,000) | ||||||||
Comprehensive (loss) income: | ||||||||||||
Net (loss) income attributable to Textainer Group Holdings Limited common shareholders | 62,050,000 | 62,050,000 | 62,050,000 | |||||||||
Net loss attributable to noncontrolling interest | 0 | |||||||||||
Change in derivative instruments designated as cash flow hedges | 4,442,000 | 4,442,000 | 4,442,000 | |||||||||
Reclassification of realized (gain) loss on derivative instruments designated as cash flow hedges | 1,194,000 | 1,194,000 | 1,194,000 | |||||||||
Foreign currency translation adjustments | (46,000) | (46,000) | (46,000) | |||||||||
Income tax benefit related to items of other comprehensive (loss) income | 36,000 | 36,000 | 36,000 | |||||||||
Total comprehensive (loss) income | 67,676,000 | |||||||||||
Ending Balances at Mar. 31, 2021 | $ 1,326,704,000 | $ 590,000 | $ (97,017,000) | $ 426,804,000 | $ (4,118,000) | $ 1,000,445,000 | $ 1,326,704,000 | |||||
Ending Balances (in shares) at Mar. 31, 2021 | 58,884,261 | (8,791,350) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 62,050 | $ (5,108) | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 65,806 | 66,834 | |
Bad debt (recovery) expense, net | (1,127) | 2,045 | |
Container recovery from lessee default, net | (5,712) | (1) | |
Unrealized (gain) loss on derivative instruments, net | (3,192) | 14,937 | |
Amortization and write-off of unamortized debt issuance costs and accretion of bond discounts | 2,429 | 2,183 | |
Amortization of intangible assets | 800 | 564 | |
Gain on sale of owned fleet containers, net | (12,358) | (5,794) | |
Share-based compensation expense | 1,334 | 1,071 | |
Changes in operating assets and liabilities | 24,483 | (3,009) | |
Total adjustments | 72,463 | 78,830 | |
Net cash provided by operating activities | 134,513 | 73,722 | |
Cash flows from investing activities: | |||
Purchase of containers and fixed assets | (311,995) | (11,249) | |
Payments on container leaseback financing receivable | (6,425) | ||
Proceeds from sale of containers and fixed assets | 29,654 | 30,939 | |
Receipt of principal payments on container leaseback financing receivable | 8,721 | 5,099 | |
Net cash (used in) provided by investing activities | (280,045) | 24,789 | |
Cash flows from financing activities: | |||
Proceeds from debt | 1,153,599 | ||
Principal payments on debt | (969,991) | (134,697) | |
Purchase of treasury shares | (10,778) | (15,477) | |
Purchase of noncontrolling interest | (21,500) | ||
Proceeds from container leaseback financing liability, net | 6,801 | ||
Principal repayments on container leaseback financing liability, net | (94) | (124) | |
Payment of debt issuance costs | 6,845 | 57 | |
Issuance of common shares upon exercise of share options | 1,842 | ||
Net cash provided by (used in) financing activities | 153,034 | (150,355) | |
Effect of exchange rate changes | (46) | (63) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 7,456 | (51,907) | |
Cash, cash equivalents and restricted cash, beginning of the year | 205,165 | 277,905 | $ 277,905 |
Cash, cash equivalents and restricted cash, end of period | 212,621 | 225,998 | $ 205,165 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest expense and realized loss on derivative instruments, net | 29,812 | 35,657 | |
Income taxes paid | 248 | 22 | |
Receipt of payments on finance leases, net of income earned | 14,467 | 8,664 | |
Supplemental disclosures of noncash investing activities: | |||
Increase (decrease) in accrued container purchases | 258,275 | (4,100) | |
Containers placed in finance leases | $ 207,171 | $ 53,730 |
Nature of Business
Nature of Business | 3 Months Ended |
Mar. 31, 2021 | |
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 manages and provides administrative support to the third-party owners’ (the “Container Investors”) container fleets. The Company conducts its business activities in three main areas: Container Ownership, Container Management and Container Resale (see Note 10 “Segment Information”). |
Accounting Policy Updates and R
Accounting Policy Updates and Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting Policy Updates and Recent Accounting Pronouncements | (2) Accounting Policy Updates and Recent Accounting Pronouncements (a) Basis of Presentation 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, 2020 (“2020 Form 20-F”) filed with the Securities and Exchange Commission on March 18, 2021. 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 financial statements. The Company’s management evaluates its estimates on an ongoing basis, including those related to container rental equipment, 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 March 31, 2021, the Company’s condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020, condensed consolidated statements of comprehensive income (loss) for the three months ended March 31, 2021 and 2020, condensed consolidated statements of shareholders’ equity for the three months ended March 31, 2021 and 2020 and condensed consolidated statements of cash flows for the three months ended March 31, 2021 and 2020. 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, 2021. (b) Principles of Consolidation and Variable Interest Entity The condensed consolidated financial statements of the Company include TGH and all of its subsidiaries in which the Company has a controlling financial interest. All significant intercompany accounts and balances have been eliminated in consolidation. TAP Funding TAP Funding Ltd. (“TAP Funding”) (a Bermuda company) was a joint venture between the Company’s wholly-owned subsidiary, Textainer Limited (“TL”) (a Bermuda company) and TAP Ltd. (“TAP”) in which TL owned 50.1%, TAP owned 49.9% of the common shares of TAP Funding, and TAP Funding was a voting interest entity (“VME”). The Company consolidated TAP Funding as the Company had a controlling financial interest in TAP Funding. In January 2021, the Company completed the acquisition of 49.9% of the common shares of TAP Funding from TAP Ltd. for a total purchase price consideration of $21,500. After the acquisition of the noncontrolling interest (“NCI”), the Company owns 100% of TAP Funding and TAP Funding became a wholly owned subsidiary of the Company. The Company accounted for this equity transaction as a reduction in the related NCI, and the difference between the carrying value of the NCI on January 1, 2021 and the cash consideration was recognized as an increase in additional paid-in capital (“APIC”) by $7,022. Prior to the acquisition of the NCI, the equity owned by TAP in TAP Funding was shown as NCI on the Company’s condensed consolidated balance sheet as of December 31, 2020 and the net income (loss) was shown as net income (loss) attributable to the NCI on the Company’s condensed consolidated statements of operations for the three months ended March 31, 2020. After the capital restructuring, there is no NCI in TAP Funding on the Company’s condensed consolidated balance sheet as of March 31, 2021 and there is no net income (loss) attributable to the NCI on the Company’s condensed consolidated statements of operations for the three months ended March 31, 2021. (c) Containers Capitalized container costs include the container cost payable to the manufacturer and the associated transportation costs incurred in moving the Company’s containers from the manufacturer to the containers’ first destined port. Containers are depreciated using the straight-line method over their estimated useful lives to an estimated dollar residual value. Used containers are depreciated based upon their remaining useful lives at the date of acquisition to an estimated dollar residual value. The cost, accumulated depreciation and net book value of the Company’s container leasing equipment by equipment type as of March 31, 2021 and December 31, 2020 were as follows: March 31, 2021 December 31, 2020 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Dry containers other than open top and flat rack containers: 20' $ 1,535,540 $ (440,838 ) $ 1,094,702 $ 1,532,753 $ (428,913 ) $ 1,103,840 40' 143,096 (55,718 ) 87,378 144,881 (55,154 ) 89,727 40' high cube 3,047,156 (698,167 ) 2,348,989 2,717,384 (672,416 ) 2,044,968 45' high cube 34,444 (13,038 ) 21,406 27,880 (12,747 ) 15,133 Refrigerated containers: 20' 19,997 (8,749 ) 11,248 20,164 (8,493 ) 11,671 20' high cube 1,720 (1,283 ) 437 2,605 (1,742 ) 863 40' high cube 1,112,362 (414,542 ) 697,820 1,103,817 (398,721 ) 705,096 Open top and flat rack containers: 20' folding flat 16,967 (5,055 ) 11,912 17,228 (5,132 ) 12,096 40' folding flat 48,727 (18,060 ) 30,667 49,167 (18,275 ) 30,892 20' open top 13,243 (1,875 ) 11,368 13,253 (1,790 ) 11,463 40' open top 22,658 (4,782 ) 17,876 22,271 (4,738 ) 17,533 Tank containers 95,005 (12,800 ) 82,205 93,240 (11,470 ) 81,770 Total containers $ 6,090,915 $ (1,674,907 ) $ 4,416,008 $ 5,744,643 $ (1,619,591 ) $ 4,125,052 See Note 4 “Managed Container Fleet” for information on the managed fleet containers included above. Impairment of Container Rental Equipment The Company reviews its containers 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 containers 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 leasing equipment for the three months ended March 31, 2021 and 2020. Write-Off (Recoveries) of Container Rental Equipment due to Lessees in Default The Company evaluates the recoverability of the recorded amounts of containers that are unlikely to be recovered from lessees in default. During the three months ended March 31, 2021 and 2020, the Company recorded gains of $7,577 and $1, respectively, associated with recoveries on containers previously estimated as lost with lessees in default, offset by impairment charges of $1,865 and $0, respectively, to write-off containers that were unlikely to be recovered from lessees in default. The net gain of $7,577 during the three months ended March 31, 2021 was due to the reinstatement of containers with a previously insolvent and bankrupt lessee which had been written off in 2019, resulting from a successful exit by the lessee from bankruptcy. These amounts are recorded in the condensed consolidated statements of operations as “container lessee default recovery, net”. Impairment of Containers Held for Sale Containers identified as being available 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 was 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. The carrying value of containers held for sale that have been impaired to write down the value of the containers to their estimated fair value less cost to sell was $1,650 and $5,845 as of March 31, 2021 and December 31, 2020, respectively. 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. 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 months ended March 31, 2021 and 2020, the Company recorded container impairment (reversals) charges of $(839) and $4,586, 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 (reversals) charges are included in “depreciation expense” in the condensed consolidated statements of operations. (d) Concentrations 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 foreign concentrations lies with the creditworthiness of the lessees rather than the geographic location of the containers or the domicile of the lessees. Except for the lessees noted in the tables below, no other single lessee made up greater than 10% of the Company’s lease rental income from its owned fleet for the three months ended March 31, 2021 and 2020 and more than 10% of the Company’s gross accounts receivable from its owned fleet as of March 31, 2021 and December 31, 2020: Three Months Ended March 31, Lease Rental Income - owned fleet 2021 2020 Customer A 20.5% 16.9% Customer B 17.8% 6.7% Customer C 12.0% 13.2% Gross Accounts Receivable- owned fleet March 31, 2021 December 31, 2020 Customer A 29.2% 30.3% Customer B 11.7% 10.3% Customer C 12.2% 12.9% Total fleet 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 fleet lease rental income for the three months ended March 31, 2021 and 2020 and more than 10% of the Company’s gross accounts receivable from its total fleet as of March 31, 2021 and December 31, 2020. Three Months Ended March 31, Lease Rental Income - total fleet 2021 2020 Customer A 19.8% 16.5% Customer B 17.4% 6.7% Customer C 12.3% 14.4% Gross Accounts Receivable- total fleet March 31, 2021 December 31, 2020 Customer A 36.5% 37.7% Customer B 9.3% 16.7% Customer C 11.7% 11.6% (e) Net Income (Loss) Attributable to Textainer Group Holdings Limited Common Shareholders Per Common Share Basic earnings per share (“EPS”) is computed by dividing net income (loss) attributable to Textainer Group Holdings Limited 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 March 31, Share amounts in thousands 2021 2020 Numerator: Net income (loss) attributable to Textainer Group Holdings Limited common shareholders $ 62,050 $ (4,379 ) Denominator: Weighted average common shares outstanding - basic 50,150 56,455 Dilutive share options, RSU and PSU 715 — Weighted average common shares outstanding - diluted 50,865 56,455 Net income (loss) attributable to Textainer Group Holdings Limited common shareholders per common share Basic $ 1.24 $ (0.08 ) Diluted $ 1.22 $ (0.08 ) Share options, RSU and PSU excluded from the computation of diluted EPS because they were anti-dilutive 697 2,147 Given that the Company had a net loss attributable to Textainer Group Holdings Limited common shareholders for the three months ended March 31, 2020, there was no dilutive effect of share options and RSU as of such date. (f) Fair Value Measurements As of March 31, 2021 and December 31, 2020, 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 At March 31, 2021 and December 31, 2020, the fair value of net investment in finance leases (including the short-term balance) was approximately $1,064,927 and $856,392 at March 31, 2021 and December 31, 2020, respectively, compared to book values of $1,070,620 and $879,960 at March 31, 2021 and December 31, 2020, respectively. The fair value of container leaseback financing receivable (including the short-term balance) was approximately $366,534 and $363,774 at March 31, 2021 and December 31, 2020, respectively, compared to book values of $363,754 and $363,868 at March 31, 2021 and December 31, 2020, respectively. The fair value of long-term debt (including current maturities) based on the borrowing rates available to the Company was approximately $4,325,580 and $4,144,332 at March 31, 2021 and December 31, 2020, respectively, compared to book values of $4,294,426 and $4,115,344 at March 31, 2021 and December 31, 2020, respectively. ( g ) Recently Issued Accounting Standards In March 2020, the FASB issued Accounting Standards Update No. 2020-04, Reference Rate Reform (“Topic 848”) In January 2021, the FASB also issued , Reference Rate Reform: Scope (“ASU 2021-01”), which expands the scope of Topic 848. The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. transition period until the LIBOR cessation by the end of June 2023 . The Company expects the adoption of this guidance will not have a material impact on the Compa ny’s condensed consolidated financial statements . There were no changes to the Company’s significant accounting policies during the three months ended March 31, 2021. 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 2020 Form 20-F. |
Insurance Receivable and Impair
Insurance Receivable and Impairment | 3 Months Ended |
Mar. 31, 2021 | |
Loss Contingency [Abstract] | |
Insurance Receivable and Impairment | (3) Insurance Receivable and Impairment One of the Company’s customers became bankrupt in 2019. The insolvent customer’s restructuring plan was approved by the bankruptcy court in November 2020. container lessee default recovery, net” The Company did not submit a final insurance claim after its review of the insolvent customer’s restructuring plan, therefore, the insurance receivable of $2,106 that was recorded in the “prepaid expenses and other current assets” in the condensed consolidated balance sheets as of December 31, 2020 was written-off and included in container lessee default recovery, net” As of March 31, 2021, the bankruptcy settlement amount is not determinable and realizable (s ee Note 13 “ Subsequent Events”). During the three months ended March 31, 2021, one of the Company’s customers became insolvent and the total net book value of its owned containers leased to this insolvent customer was $10,538. during the three months ended March 31, 2021 |
Managed Container Fleet
Managed Container Fleet | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Managed Container Fleet | (4) Managed Container Fleet Lease rental income and expenses from the managed fleet owned by Container Investors are reported on a gross basis. Lease rental income – managed fleet represents rental charges billed to the ultimate lessee 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. Acquisition fees from purchases of containers for the managed fleet are deferred and recognized as earned on a straight-line basis over the deemed lease term. As of March 31, 2021 and December 31, 2020, deferred revenue from acquisition fees amounted to $1,121 and $1,049, respectively, which were combined and reported as “accounts payable and accrued expenses” in the condensed consolidated balance sheets. 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 the Company’s container leasing equipment in the Company’s condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020. The purchase consideration paid by the Container Investors for such containers is reported as a deemed financial liability of the Company. As of March 31, 2021 and December 31, 2020, the Company’s container leaseback financial liability to the Container Investors amounted to $11,457, and $4,762, 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 March 31, 2021 and December 31, 2020, which consisted of the following: March 31, 2021 December 31, 2020 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Containers - owned fleet $ 6,080,198 $ (1,674,527 ) $ 4,405,671 $ 5,740,717 $ (1,619,304 ) $ 4,121,413 Containers - managed fleet 10,717 (380 ) 10,337 3,926 (287 ) $ 3,639 Total containers $ 6,090,915 $ (1,674,907 ) $ 4,416,008 $ 5,744,643 $ (1,619,591 ) $ 4,125,052 Total management fee income from the managed fleet, including management fees earned from acquisition fees and sales commissions during the three months ended March 31, 2021 and 2020 were as follows (see Note 5 “Transactions with Affiliates and Container Investors”): Three Months Ended March 31, 2021 2020 Lease rental income - managed fleet $ 14,821 $ 15,406 Less: distribution expense to managed fleet container investors (13,495 ) (14,163 ) Less: depreciation and interest expense on managed containers purchased on or after January 1, 2019 (169 ) (239 ) Management fees from leasing 1,157 1,004 Management fees from non-leasing services 1,036 1,484 Total management fees $ 2,193 $ 2,488 The following table provides a reconciliation of the balance sheet accounts from the managed fleet to the total amount as of March 31, 2021 and December 31, 2020 in the condensed consolidated balance sheets (also, see Note 5 “Transactions with Affiliates and Container Investors”): March 31, 2021 December 31, 2020 Accounts receivable, net - owned fleet $ 101,328 $ 97,950 Accounts receivable, net - managed fleet 9,666 10,628 Total accounts receivable, net $ 110,994 $ 108,578 Prepaid expenses and other current assets - owned fleet $ 12,334 $ 13,614 Prepaid expenses and other current assets - managed fleet 97 99 Total prepaid expenses and other current assets $ 12,431 $ 13,713 Accounts payable and accrued expenses - owned fleet $ 16,565 $ 23,198 Accounts payable and accrued expenses - managed fleet 701 1,187 Total accounts payable and accrued expenses $ 17,266 $ 24,385 Container contracts payable - owned fleet $ 489,922 $ 231,647 Total container contracts payable $ 489,922 $ 231,647 For further discussion on the Company’s managed container fleet, please refer to Item 18, “Financial Statements – Note 3” in our 2020 Form 20-F. |
Transactions with Affiliates an
Transactions with Affiliates and Container Investors | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates and Container Investors | ( 5 ) Transactions with Affiliates and Container Investors Due from affiliates, net of $1,998 and $1,509, as of March 31, 2021 and December 31, 2020, 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. Total management fees earned from the Company’s managed fleet, including acquisition fees and sales commissions for the three months ended March 31, 2021 and 2020 amounted to $2,193 and $2,488, respectively. The following table provides a summary of due to container investors, net amounts at March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Accounts receivable, net - managed fleet $ 9,666 $ 10,628 Prepaid expenses and other current assets - managed fleet 97 99 Accounts payable and accrued expenses - managed fleet (701 ) (1,187 ) 9,062 9,540 Distributions due to container investors on lease rentals collected, net of container expenses paid and management fees 15,782 9,157 Due to container investors, net $ 24,844 $ 18,697 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | ( 6 ) Leases (a) Lessor The Company’s lease rental income for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 Owned Managed Total Owned Managed Total Lease rental income - operating leases $ 130,914 $ 14,446 $ 145,360 $ 115,803 $ 14,514 $ 130,317 Interest income on net investment in finance leases 14,643 — 14,643 5,284 — 5,284 Interest income on container leaseback financing receivable 5,438 — 5,438 4,006 — 4,006 Variable lease revenue 3,428 375 3,803 4,979 892 5,871 Total lease rental income $ 154,423 $ 14,821 $ 169,244 $ 130,072 $ 15,406 $ 145,478 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 $435 and $(9) for the three months ended March 31, 2021 and 2020, respectively, are included in “gain on sale of owned fleet containers, net” in the condensed consolidated statements of operations. Operating Leases The following is a schedule, by year, of future minimum lease payments receivable under the long-term leases for the owned and managed container fleet as of March 31, 2021: Owned Managed Total Twelve months ending March 31: 2022 381,750 30,103 411,853 2023 332,258 19,109 351,367 2024 281,146 16,508 297,654 2025 224,292 12,156 236,448 2026 150,686 8,221 158,907 2027 and thereafter 186,684 11,891 198,575 Total future minimum lease payments receivable $ 1,556,816 $ 97,988 $ 1,654,804 Net Investment in Finance Leases The following table represents the components of the net investment in finance leases as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Future minimum lease payments receivable $ 1,500,200 $ 1,216,086 Residual value of containers 17,354 12,601 Less: unearned income (446,292 ) (347,394 ) Net investment in finance leases (1) $ 1,071,262 $ 881,293 Less: Allowance for credit losses (642 ) (1,333 ) Net investment in finance leases, net $ 1,070,620 $ 879,960 Amounts due within one year $ 87,451 $ 78,459 Amounts due beyond one year 983,169 801,501 Net investment in finance leases, net $ 1,070,620 $ 879,960 (1) One major customer represented 78.3% and 80.1% of the Company’s finance leases portfolio as of March 31, 2021 and December 31, 2020, respectively. No other customer represented more than 10% of the Company’s finance leases portfolio in each of those periods. 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 March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Future minimum payments receivable $ 502,735 $ 505,473 Less: unearned income (138,825 ) (141,181 ) Container leaseback financing receivable (1) 363,910 $ 364,292 Less: Allowance for credit losses (156 ) (424 ) Container leaseback financing receivable, net $ 363,754 $ 363,868 Amounts due within one year 28,495 27,076 Amounts due beyond one year 335,259 336,792 Container leaseback financing receivable, net $ 363,754 $ 363,868 (1) As of March 31, 2021, two customers represented 88.6% and 9.7% of the Company’s container leaseback financing receivable portfolio. The following is a schedule by year of future minimum lease payments receivable under the net investment in finance leases and container leaseback financing receivable as of March 31, 2021: Twelve months ending March 31: Net Investment in Finance Leases Container Leaseback Financing Receivable Total 2022 148,625 49,300 197,925 2023 125,940 49,300 175,240 2024 119,638 49,435 169,073 2025 113,666 42,237 155,903 2026 112,741 37,433 150,174 2027 and thereafter 879,590 275,030 1,154,620 Total future minimum lease payments receivable $ 1,500,200 $ 502,735 $ 2,002,935 (b) Lessee Right-of-use (“ROU”) lease assets and lease liability 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 March 31, 2021 and December 31, 2020, ROU operating lease assets amounted to $9,927 and $10,331, respectively, which were reported in “other assets” in the condensed consolidated balance sheets. As of March 31, 2021 and December 31, 2020, total lease liabilities amounted to $12,177 and $12,636, respectively, which were reported in “other liabilities” in the condensed consolidated balance sheets. As of March 31, 2021, the weighted average discount rate was 4.6% and the weighted average remaining lease term was 5 years. Operating lease expense is recognized on a straight-line basis over the lease term and is reported in “general and administrative expense” in the condensed consolidated statements of operations. Other information related to the Company's operating leases are as follows: Three Months Ended March 31, 2021 2020 Operating lease cost $ 526 $ 527 Short-term and variable lease cost 31 31 Total rent expense $ 557 $ 558 Cash paid for amounts included in the measurement of lease liabilities $ 587 $ 623 Future minimum lease payment obligations under the Company’s noncancelable operating leases at March 31, 2021 were as follows: Operating Leases Twelve months ending March 31: 2022 2,224 2023 2,269 2024 2,343 2025 2,265 2026 2,138 2027 and thereafter 2,569 Total minimum lease payments 13,808 Less imputed interest (1,631 ) Total present value of operating lease liabilities $ 12,177 |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2021 | |
Allowance For Credit Loss [Abstract] | |
Allowance for Credit Losses | ( 7 ) 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. Changes in economic conditions or other events may necessitate additions or deductions to the allowance for credit losses. Accounts Receivable The Company maintains allowances, if necessary, for doubtful accounts against accounts receivables resulting from the inability of its lessees to make required payments related to billed amounts under the operating leases, finance leases and container leaseback financing receivable. The allowance for credit losses included in accounts receivable, net, amounted to $2,088 and $2,663 as of March 31, 2021 and December 31, 2020, respectively. As of March 31, 2021 and December 31, 2020, the Company does not have an allowance for credit losses related to the billed amounts under the container leaseback financing receivable. As of March 31, 2021 and December 31, 2020, the allowance for credit losses related to the billed amounts under the finance leases and included in accounts receivable, net, amounted to $650 and $735, respectively. Net Investment in Finance Leases and Container Leaseback Financing Receivable The Company maintains allowances for credit losses against net investment in finance leases and container leaseback financing receivable related to unbilled amounts under the finance leases and the sales-type leaseback arrangements accounted for as 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 $642 and $1,333 as of March 31, 2021 and December 31, 2020, respectively. The allowance for credit losses related to unbilled amounts under the financing arrangements and included in container leaseback financing receivable, net, amounted to $156 and $424 as of March 31, 2021 and December 31, 2020, respectively. The Company evaluates its exposure by portfolio with similar risk characteristics based on the creditworthiness, external credit data and overall credit quality of its lessees. The Company’s internal risk rating categories are “Tier 1” for the lowest level of risk which are typically the large international shipping lines with strong financial and asset base; “Tier 2” for moderate level of risk which includes lessees which are well-established in the market; and “Tier 3” for the highest level of risk which includes smaller shipping lines or lessees that exhibit high volatility in payments on a regular basis. 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 March 31, 2021: Three Months Ended March 31, 2021 2020 2019 2018 2017 Prior Total Tier 1 $ 103,784 $ 635,976 $ 109,735 $ 35,058 $ 7,138 $ 33,973 $ 925,664 Tier 2 25,706 40,219 36,430 20,558 42 7,313 130,268 Tier 3 4,415 2,784 6,768 707 — 656 15,330 Net investment in finance leases $ 133,905 $ 678,979 $ 152,933 $ 56,323 $ 7,180 $ 41,942 $ 1,071,262 Tier 1 $ — $ 112,066 $ 210,460 $ — $ — $ — $ 322,526 Tier 2 6,153 — 35,231 — — — 41,384 Tier 3 — — — — — — — Container leaseback financing receivable $ 6,153 $ 112,066 $ 245,691 $ — $ — $ — $ 363,910 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | ( 8 ) Income Taxes |
Debt and Derivative Instruments
Debt and Derivative Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Derivative Instruments | ( 9 ) Debt and Derivative Instruments Debt The following represents the Company’s debt obligations as of March 31, 2021 and December 31, 2020: Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable March 31, 2021 December 31, 2020 Outstanding Average Interest Outstanding Average Interest Final Maturity TL Revolving Credit Facility $ 1,158,837 1.61 % $ 1,433,919 1.65 % September 2023 TL 2019 Term Loan 145,512 3.50 % 148,131 3.50 % December 2026 TL 2021 Term Loan 69,039 2.65 % — 0.00 % February 2028 TMCL II Secured Debt Facility (1) 669,221 1.91 % 646,551 1.91 % July 2026 TMCL VI Term Loan 217,440 4.29 % 223,630 4.29 % February 2038 TMCL VII 2019-1 Bonds 293,477 4.02 % 300,305 4.02 % April 2044 TMCL VII 2020-1 Bonds 418,242 3.07 % 429,600 3.07 % August 2045 TMCL VII 2020-2 Bonds 573,256 2.26 % 587,183 2.26 % September 2045 TMCL VII 2020-3 Bonds 209,232 2.15 % 214,168 2.15 % September 2045 TMCL VII 2021-1 Bonds 540,170 1.72 % — 0.00 % February 2046 TAP Funding Revolving Credit Facility — — 131,857 2.11 % December 2021 Total debt obligations $ 4,294,426 $ 4,115,344 Amount due within one year $ 295,518 $ 408,365 Amounts due beyond one year $ 3,998,908 $ 3,706,979 (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. In February 2021, Textainer Marine Containers VII Limited (“TMCL VII”) issued $523,500 of aggregate Class A and $26,500 of aggregate Class B Series 2021-1 Fixed Rate Asset Backed Notes (“the TMCL VII 2021-1 Bonds”). Under the terms of the TMCL VII 2021-1 Bonds, both principal and interest incurred are payable monthly. Proceeds from the TMCL VII 2021-1 Bonds were primarily used to pay down the Company’s revolving credit facilities to create additional borrowing capacity for future container investments. In February 2021, TL completed a $70,270 fixed rate term loan (the “TL 2021 Term Loan”) with a group of financial institutions. Interest on the outstanding amount due under this term loan is based on a fixed rate of 2.65% per annum, payable monthly in arrears. Proceeds from this term loan were used to pay down TL’s revolving credit facility. In February 2021, the Company fully repaid and terminated the TAP Funding Revolving Credit Facility prior to its scheduled maturity. During the three months ended March 31, 2021, unamortized debt issuance costs of was written-off related to the early extinguishment of TAP Funding Revolving Credit Facility. The Company’s debt agreements contain various restrictive financial and other covenants, and the Company was in full compliance with these restrictive covenants at March 31, 2021. T he following is a schedule of the Company’s outstanding borrowings and borrowing capacities, as of March 31, 2021: Total Borrowing Available Borrowing, as limited by the Borrowing Base Current and Available Borrowing, as limited by the Borrowing Base Total Commitment TL Revolving Credit Facility $ 1,163,000 $ 166,388 $ 1,329,388 $ 1,500,000 TL 2019 Term Loan 146,788 — 146,788 146,788 TL 2021 Term Loan 69,827 — 69,827 69,827 TMCL II Secured Debt Facility 671,731 — 671,731 1,200,000 TMCL VI Term Loan 218,821 — 218,821 218,821 TMCL VII 2019-1 Bonds (1) 296,334 — 296,334 296,334 TMCL VII 2020-1 Bonds (1) 422,644 — 422,644 422,644 TMCL VII 2020-2 Bonds (1) 579,382 — 579,382 579,382 TMCL VII 2020-3 Bonds (1) 210,945 — 210,945 210,945 TMCL VII 2021-1 Bonds (1) 546,332 — 546,332 546,332 Total (2) $ 4,325,804 $ 166,388 $ 4,492,192 $ 5,191,073 ( 1 ) Amounts on the TMCL VII 2019-1 Bonds, 2020-1 Bonds, 2020-2 Bonds, 2020-3 Bonds and 2021-1 Bonds, exclude an unamortized discount of $77, $74, $149, $78 and $167, respectively. ( 2 ) Total borrowing for all debts excludes unamortized prepaid debt issuance costs in an aggregate amount of $30,833. For further discussion on the Company’s debt instruments, please refer to Item 18, “Financial Statements – Note 8” in our 2020 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. The Company has utilized the income approach to measure at each balance sheet date the fair value of its derivative instruments using observable (Level 2) market inputs. The valuation also reflects the credit standing of the Company and the counterparties to the derivative agreements. The credit valuation adjustment was determined to be $103 and $247 (both were additions to the net fair value) as of March 31, 2021 and December 31, 2020, respectively. Derivative instruments are designated or non-designated for hedge accounting purposes. The change in fair value of d erivative 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 change in fair value erivative instruments that are not designated for hedge accounting are recognized in earnings during the period of change. The following table summarizes the fair value of the derivative instruments that were reflected on a gross basis on the condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Assets Interest rate swaps - designated as hedges $ 2,188 $ 47 Total $ 2,188 $ 47 Liabilities Interest rate swaps - designated as hedges $ 6,171 $ 9,665 Interest rate swaps - not designated as hedges 14,477 19,570 Total $ 20,648 $ 29,235 The following is a summary of the Company’s derivative instruments as of March 31, 2021: Notional Derivative instruments amount Interest rate swap contracts with several banks, with fixed rates between 1.73% and 2.94% per annum, amortizing notional amounts, with termination dates through January 15, 2023, non-designated $ 452,500 Interest rate swap contracts with several banks, with fixed rates between 0.17% and 1.58% per annum, amortizing notional amounts, with termination dates through April 30, 2027, designated 708,250 Interest rate cap contract at 3.11% fixed rate with a termination date of March 31, 2022 70,000 Total notional amount as of March 31, 2021 $ 1,230,750 Over the next twelve months, the Company expects to reclassify an estimated net loss of $4,438 related to the designated interest rate swap agreements from “accumulated other comprehensive 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 months ended March 31, 2021 and 2020: Three Months Ended March 31, Derivative instruments Financial Statement Caption 2021 2020 Non-designated Realized loss on derivative instruments, net $ (2,956 ) $ (1,526 ) Non-designated Unrealized gain (loss) on derivative instruments, net $ 3,192 $ (14,937 ) Designated Other comprehensive income (loss) $ 4,442 $ (8,858 ) Designated Interest (expense) income, net $ (1,194 ) $ 62 For further discussion on the Company’s derivative instruments, please refer to Item 18, “Financial Statements – Note 9” in our 2020 Form 20-F. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | (1 0 ) 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 months ended March 31, 2021 and 2020, reconciled to the Company’s income before income taxes and noncontrolling interests as shown in its condensed consolidated statements of operations: Container Container Container Three Months Ended March 31, 2021 Ownership Management Resale Other Eliminations Totals Lease rental income - owned fleet $ 154,290 $ 133 $ - $ - $ - $ 154,423 Lease rental income - managed fleet - 14,821 - - - 14,821 Lease rental income $ 154,290 $ 14,954 $ - $ - $ - $ 169,244 Management fees - non-leasing from external customers $ - $ 67 $ 969 $ - $ - $ 1,036 Inter-segment management fees $ - $ 20,439 $ 2,448 $ - $ (22,887 ) $ - Trading container margin $ - $ - $ 2,166 $ - $ - $ 2,166 Gain on sale of owned fleet containers, net $ 12,358 $ - $ - $ - $ - $ 12,358 Depreciation expense $ 67,703 $ 226 $ - $ - $ (2,123 ) $ 65,806 Container lessee default recovery, net $ 3,968 $ - $ - $ - $ - $ 3,968 Interest expense $ 29,032 $ 74 $ - $ - $ - $ 29,106 Write-off of unamortized debt issuance costs $ 267 $ - $ - $ - $ - $ 267 Realized loss on derivative instruments, net $ 2,956 $ - $ - $ - $ - $ 2,956 Unrealized gain on derivative instruments, net $ 3,192 $ - $ - $ - $ - $ 3,192 Segment income (loss) before income tax and noncontrolling interests $ 52,285 $ 12,280 $ 4,185 $ (773 ) $ (4,861 ) $ 63,116 Total assets $ 6,119,382 $ 203,430 $ 8,408 $ 11,690 $ (119,198 ) $ 6,223,712 Purchase of containers and fixed assets $ 570,257 $ 13 $ - $ - $ - $ 570,270 Payments on container leaseback financing receivable $ 6,425 $ - $ - $ - $ - $ 6,425 Container Container Container Three Months Ended March 31, 2020 Ownership Management Resale Other Eliminations Totals Lease rental income - owned fleet $ 129,850 $ 222 $ - $ - $ - $ 130,072 Lease rental income - managed fleet - 15,406 - - - 15,406 Lease rental income $ 129,850 $ 15,628 $ - $ - $ - $ 145,478 Management fees - non-leasing from external customers $ 98 $ 555 # $ 831 $ - $ - $ 1,484 Inter-segment management fees $ - $ 9,745 $ 2,421 $ - $ (12,166 ) $ - Trading container margin $ - $ - $ 649 $ - $ - $ 649 Gain on sale of owned fleet containers, net $ 5,794 $ - $ - $ - $ - $ 5,794 Depreciation expense $ 68,356 $ 341 $ - $ - $ (1,863 ) $ 66,834 Container lessee default recovery, net $ 12 $ - $ - $ - $ - $ 12 Interest expense $ 35,956 $ 156 $ - $ - $ - $ 36,112 Write-off of unamortized debt issuance costs $ 122 $ - $ - $ - $ - $ 122 Realized loss on derivative instruments, net $ 1,526 $ - $ - $ - $ - $ 1,526 Unrealized loss on derivative instruments, net $ 14,937 $ - $ - $ - $ - $ 14,937 Segment (loss) income before income tax and noncontrolling interests $ (12,051 ) $ 2,610 $ 2,758 $ (1,062 ) $ 1,804 $ (5,941 ) Total assets $ 4,954,452 $ 154,857 $ 17,198 $ 8,293 $ (80,994 ) $ 5,053,806 Purchase of containers and fixed assets $ 6,957 $ 192 $ - $ - $ - $ 7,149 (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized gain (loss) on derivative instruments, net of $3,192 and $(14,937) for the three months ended March 31, 2021 and 2020, respectively, and write-off of unamortized debt issuance costs of $267 and $122 for the three months ended March 31, 2021 and 2020, respectively. 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 months ended March 31, 2021 and 2020 based on customers’ and Container Investors’ primary domicile, respectively: Three Months Ended March 31, 2021 Percent of Total 2020 Percent of Total Lease rental income: Asia $ 85,193 50.3 % $ 72,795 50.0 % Europe 76,275 45.1 % 64,727 44.5 % North / South America 7,359 4.3 % 7,318 5.0 % All other international 417 0.3 % 638 0.5 % $ 169,244 100.0 % $ 145,478 100.0 % Management fees, non-leasing: Bermuda $ 589 56.9 % $ 982 66.2 % Europe 437 42.2 % 199 13.4 % Asia 3 0.3 % 3 0.2 % North / South America 1 0.1 % 4 0.3 % All other international 6 0.5 % 296 19.9 % $ 1,036 100.0 % $ 1,484 100.0 % The following table represents the geographic allocation of trading container sales proceeds and gain on sale of owned fleet containers, net during the three months ended March 31, 2021 and 2020 based on the location of sale: Three Months Ended March 31, 2021 Percent of Total 2020 Percent of Total Trading container sales proceeds: North / South America $ 4,170 54.8 % $ 2,721 28.4 % Asia 1,776 23.3 % 5,778 60.2 % Europe 1,665 21.9 % 1,081 11.3 % All other international — — 5 0.1 % $ 7,611 100.0 % $ 9,585 100.0 % Gain on sale of owned fleet containers, net: Europe $ 8,310 67.2 % $ 1,044 18.0 % North / South America 2,207 17.9 % 1,100 19.0 % Asia 1,841 14.9 % 2,446 42.2 % All other international — — 1,204 20.8 % $ 12,358 100.0 % $ 5,794 100.0 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (1 1 ) 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 $70,276 and $74,147 as of March 31, 2021 and December 31, 2020, respectively. (b) Container Commitments At March 31, 2021, the Company had commitments to purchase containers to be delivered subsequent to March 31, 2021 in the total amount of $741,674. (c) 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 4 “Managed Container Fleet”). There are no future minimum lease payment obligations under the Company’s management agreements. |
Share Repurchase Program
Share Repurchase Program | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Share Repurchase Program | (12) Share Repurchase Program In August 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 March 2020 the board of directors approved an increase by another $25,000 to this program and in September 2020 the program was further increased by $50,000. 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 us 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 three months ended March 31, 2021, the Company repurchased 546,220 shares at an average price of $19.73 for a total amount of $10,778, including commissions paid. During the three months ended March 31, 2020, the Company repurchased 1,947,443 shares at an average price of $7.91 for a total amount of $15,477, including commissions paid. As of March 31, 2021, approximately $12,454 remained available for repurchases under the share repurchase program. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | (13) Subsequent Events On April 13, 2021, the Company completed an underwritten public offering of 6,000,000 depositary shares, each representing a 1/1,000 th On April 20, 2021, TMCL VII issued $605,000 of aggregate Class A and $46,000 of aggregate Class B Series 2021-2 Fixed Rate Asset Backed Notes (“the TMCL VII 2021-2 Bonds”) to qualified institutional investors pursuant to Rule 144A under the Securities Act and to non-U.S. persons in accordance with Regulation S promulgated under the Securities Act. Under the terms of the TMCL VII 2021-2 Bonds, both principal and interest incurred are payable monthly. Proceeds from the TMCL VII 2021-2 Bonds were primarily used to pay down the Company’s revolving credit facilities and to pay off the TMCL VII 2019-1 Bonds. In April 2021, the bankruptcy settlement amount related to the restructuring of an insolvent customer of the Company was finalized and resolved. Under the terms of the settlement agreement, the Company received approximately $77 in cash on April 21, 2021 and approximately $5,789 in stock value of the insolvent customer on April 16, 2021. On May 1, 2021, the Company’s board of directors authorized an increase to the share repurchase program for an additional $50,000 of the Company’s outstanding common shares. |
Accounting Policy Updates and_2
Accounting Policy Updates and Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of Presentation 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, 2020 (“2020 Form 20-F”) filed with the Securities and Exchange Commission on March 18, 2021. 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 financial statements. The Company’s management evaluates its estimates on an ongoing basis, including those related to container rental equipment, 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 March 31, 2021, the Company’s condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020, condensed consolidated statements of comprehensive income (loss) for the three months ended March 31, 2021 and 2020, condensed consolidated statements of shareholders’ equity for the three months ended March 31, 2021 and 2020 and condensed consolidated statements of cash flows for the three months ended March 31, 2021 and 2020. 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, 2021. |
Principles of Consolidation and Variable Interest Entity | (b) Principles of Consolidation and Variable Interest Entity The condensed consolidated financial statements of the Company include TGH and all of its subsidiaries in which the Company has a controlling financial interest. All significant intercompany accounts and balances have been eliminated in consolidation. TAP Funding TAP Funding Ltd. (“TAP Funding”) (a Bermuda company) was a joint venture between the Company’s wholly-owned subsidiary, Textainer Limited (“TL”) (a Bermuda company) and TAP Ltd. (“TAP”) in which TL owned 50.1%, TAP owned 49.9% of the common shares of TAP Funding, and TAP Funding was a voting interest entity (“VME”). The Company consolidated TAP Funding as the Company had a controlling financial interest in TAP Funding. In January 2021, the Company completed the acquisition of 49.9% of the common shares of TAP Funding from TAP Ltd. for a total purchase price consideration of $21,500. After the acquisition of the noncontrolling interest (“NCI”), the Company owns 100% of TAP Funding and TAP Funding became a wholly owned subsidiary of the Company. The Company accounted for this equity transaction as a reduction in the related NCI, and the difference between the carrying value of the NCI on January 1, 2021 and the cash consideration was recognized as an increase in additional paid-in capital (“APIC”) by $7,022. Prior to the acquisition of the NCI, the equity owned by TAP in TAP Funding was shown as NCI on the Company’s condensed consolidated balance sheet as of December 31, 2020 and the net income (loss) was shown as net income (loss) attributable to the NCI on the Company’s condensed consolidated statements of operations for the three months ended March 31, 2020. After the capital restructuring, there is no NCI in TAP Funding on the Company’s condensed consolidated balance sheet as of March 31, 2021 and there is no net income (loss) attributable to the NCI on the Company’s condensed consolidated statements of operations for the three months ended March 31, 2021. |
Containers | (c) Containers Capitalized container costs include the container cost payable to the manufacturer and the associated transportation costs incurred in moving the Company’s containers from the manufacturer to the containers’ first destined port. Containers are depreciated using the straight-line method over their estimated useful lives to an estimated dollar residual value. Used containers are depreciated based upon their remaining useful lives at the date of acquisition to an estimated dollar residual value. The cost, accumulated depreciation and net book value of the Company’s container leasing equipment by equipment type as of March 31, 2021 and December 31, 2020 were as follows: March 31, 2021 December 31, 2020 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Dry containers other than open top and flat rack containers: 20' $ 1,535,540 $ (440,838 ) $ 1,094,702 $ 1,532,753 $ (428,913 ) $ 1,103,840 40' 143,096 (55,718 ) 87,378 144,881 (55,154 ) 89,727 40' high cube 3,047,156 (698,167 ) 2,348,989 2,717,384 (672,416 ) 2,044,968 45' high cube 34,444 (13,038 ) 21,406 27,880 (12,747 ) 15,133 Refrigerated containers: 20' 19,997 (8,749 ) 11,248 20,164 (8,493 ) 11,671 20' high cube 1,720 (1,283 ) 437 2,605 (1,742 ) 863 40' high cube 1,112,362 (414,542 ) 697,820 1,103,817 (398,721 ) 705,096 Open top and flat rack containers: 20' folding flat 16,967 (5,055 ) 11,912 17,228 (5,132 ) 12,096 40' folding flat 48,727 (18,060 ) 30,667 49,167 (18,275 ) 30,892 20' open top 13,243 (1,875 ) 11,368 13,253 (1,790 ) 11,463 40' open top 22,658 (4,782 ) 17,876 22,271 (4,738 ) 17,533 Tank containers 95,005 (12,800 ) 82,205 93,240 (11,470 ) 81,770 Total containers $ 6,090,915 $ (1,674,907 ) $ 4,416,008 $ 5,744,643 $ (1,619,591 ) $ 4,125,052 See Note 4 “Managed Container Fleet” for information on the managed fleet containers included above. Impairment of Container Rental Equipment The Company reviews its containers 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 containers 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 leasing equipment for the three months ended March 31, 2021 and 2020. Write-Off (Recoveries) of Container Rental Equipment due to Lessees in Default The Company evaluates the recoverability of the recorded amounts of containers that are unlikely to be recovered from lessees in default. During the three months ended March 31, 2021 and 2020, the Company recorded gains of $7,577 and $1, respectively, associated with recoveries on containers previously estimated as lost with lessees in default, offset by impairment charges of $1,865 and $0, respectively, to write-off containers that were unlikely to be recovered from lessees in default. The net gain of $7,577 during the three months ended March 31, 2021 was due to the reinstatement of containers with a previously insolvent and bankrupt lessee which had been written off in 2019, resulting from a successful exit by the lessee from bankruptcy. These amounts are recorded in the condensed consolidated statements of operations as “container lessee default recovery, net”. Impairment of Containers Held for Sale Containers identified as being available 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 was 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. The carrying value of containers held for sale that have been impaired to write down the value of the containers to their estimated fair value less cost to sell was $1,650 and $5,845 as of March 31, 2021 and December 31, 2020, respectively. 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. 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 months ended March 31, 2021 and 2020, the Company recorded container impairment (reversals) charges of $(839) and $4,586, 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 (reversals) charges are included in “depreciation expense” in the condensed consolidated statements of operations. |
Concentrations | (d) Concentrations 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 foreign concentrations lies with the creditworthiness of the lessees rather than the geographic location of the containers or the domicile of the lessees. Except for the lessees noted in the tables below, no other single lessee made up greater than 10% of the Company’s lease rental income from its owned fleet for the three months ended March 31, 2021 and 2020 and more than 10% of the Company’s gross accounts receivable from its owned fleet as of March 31, 2021 and December 31, 2020: Three Months Ended March 31, Lease Rental Income - owned fleet 2021 2020 Customer A 20.5% 16.9% Customer B 17.8% 6.7% Customer C 12.0% 13.2% Gross Accounts Receivable- owned fleet March 31, 2021 December 31, 2020 Customer A 29.2% 30.3% Customer B 11.7% 10.3% Customer C 12.2% 12.9% Total fleet 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 fleet lease rental income for the three months ended March 31, 2021 and 2020 and more than 10% of the Company’s gross accounts receivable from its total fleet as of March 31, 2021 and December 31, 2020. Three Months Ended March 31, Lease Rental Income - total fleet 2021 2020 Customer A 19.8% 16.5% Customer B 17.4% 6.7% Customer C 12.3% 14.4% Gross Accounts Receivable- total fleet March 31, 2021 December 31, 2020 Customer A 36.5% 37.7% Customer B 9.3% 16.7% Customer C 11.7% 11.6% |
Net Income (Loss) Attributable to Textainer Group Holdings Limited Common Shareholders Per Common Share | (e) Net Income (Loss) Attributable to Textainer Group Holdings Limited Common Shareholders Per Common Share Basic earnings per share (“EPS”) is computed by dividing net income (loss) attributable to Textainer Group Holdings Limited 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 March 31, Share amounts in thousands 2021 2020 Numerator: Net income (loss) attributable to Textainer Group Holdings Limited common shareholders $ 62,050 $ (4,379 ) Denominator: Weighted average common shares outstanding - basic 50,150 56,455 Dilutive share options, RSU and PSU 715 — Weighted average common shares outstanding - diluted 50,865 56,455 Net income (loss) attributable to Textainer Group Holdings Limited common shareholders per common share Basic $ 1.24 $ (0.08 ) Diluted $ 1.22 $ (0.08 ) Share options, RSU and PSU excluded from the computation of diluted EPS because they were anti-dilutive 697 2,147 Given that the Company had a net loss attributable to Textainer Group Holdings Limited common shareholders for the three months ended March 31, 2020, there was no dilutive effect of share options and RSU as of such date. |
Fair Value Measurements | (f) Fair Value Measurements As of March 31, 2021 and December 31, 2020, 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 At March 31, 2021 and December 31, 2020, the fair value of net investment in finance leases (including the short-term balance) was approximately $1,064,927 and $856,392 at March 31, 2021 and December 31, 2020, respectively, compared to book values of $1,070,620 and $879,960 at March 31, 2021 and December 31, 2020, respectively. The fair value of container leaseback financing receivable (including the short-term balance) was approximately $366,534 and $363,774 at March 31, 2021 and December 31, 2020, respectively, compared to book values of $363,754 and $363,868 at March 31, 2021 and December 31, 2020, respectively. The fair value of long-term debt (including current maturities) based on the borrowing rates available to the Company was approximately $4,325,580 and $4,144,332 at March 31, 2021 and December 31, 2020, respectively, compared to book values of $4,294,426 and $4,115,344 at March 31, 2021 and December 31, 2020, respectively. |
Recently Issued Accounting Standards | ( g ) Recently Issued Accounting Standards In March 2020, the FASB issued Accounting Standards Update No. 2020-04, Reference Rate Reform (“Topic 848”) In January 2021, the FASB also issued , Reference Rate Reform: Scope (“ASU 2021-01”), which expands the scope of Topic 848. The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. transition period until the LIBOR cessation by the end of June 2023 . The Company expects the adoption of this guidance will not have a material impact on the Compa ny’s condensed consolidated financial statements . There were no changes to the Company’s significant accounting policies during the three months ended March 31, 2021. 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 2020 Form 20-F. |
Allowance for Credit Losses | The Company evaluates its exposure by portfolio with similar risk characteristics based on the creditworthiness, external credit data and overall credit quality of its lessees. The Company’s internal risk rating categories are “Tier 1” for the lowest level of risk which are typically the large international shipping lines with strong financial and asset base; “Tier 2” for moderate level of risk which includes lessees which are well-established in the market; and “Tier 3” for the highest level of risk which includes smaller shipping lines or lessees that exhibit high volatility in payments on a regular basis. |
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. The Company has utilized the income approach to measure at each balance sheet date the fair value of its derivative instruments using observable (Level 2) market inputs. The valuation also reflects the credit standing of the Company and the counterparties to the derivative agreements. The credit valuation adjustment was determined to be $103 and $247 (both were additions to the net fair value) as of March 31, 2021 and December 31, 2020, respectively. Derivative instruments are designated or non-designated for hedge accounting purposes. The change in fair value of d erivative 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 change in fair value erivative instruments that are not designated for hedge accounting are recognized in earnings during the period of change. |
Accounting Policy Updates and_3
Accounting Policy Updates and Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Schedule of Cost, Accumulated Depreciation and Net Book Value of the Company's Leasing Equipment by Equipment Type | The cost, accumulated depreciation and net book value of the Company’s container leasing equipment by equipment type as of March 31, 2021 and December 31, 2020 were as follows: March 31, 2021 December 31, 2020 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Dry containers other than open top and flat rack containers: 20' $ 1,535,540 $ (440,838 ) $ 1,094,702 $ 1,532,753 $ (428,913 ) $ 1,103,840 40' 143,096 (55,718 ) 87,378 144,881 (55,154 ) 89,727 40' high cube 3,047,156 (698,167 ) 2,348,989 2,717,384 (672,416 ) 2,044,968 45' high cube 34,444 (13,038 ) 21,406 27,880 (12,747 ) 15,133 Refrigerated containers: 20' 19,997 (8,749 ) 11,248 20,164 (8,493 ) 11,671 20' high cube 1,720 (1,283 ) 437 2,605 (1,742 ) 863 40' high cube 1,112,362 (414,542 ) 697,820 1,103,817 (398,721 ) 705,096 Open top and flat rack containers: 20' folding flat 16,967 (5,055 ) 11,912 17,228 (5,132 ) 12,096 40' folding flat 48,727 (18,060 ) 30,667 49,167 (18,275 ) 30,892 20' open top 13,243 (1,875 ) 11,368 13,253 (1,790 ) 11,463 40' open top 22,658 (4,782 ) 17,876 22,271 (4,738 ) 17,533 Tank containers 95,005 (12,800 ) 82,205 93,240 (11,470 ) 81,770 Total containers $ 6,090,915 $ (1,674,907 ) $ 4,416,008 $ 5,744,643 $ (1,619,591 ) $ 4,125,052 |
Schedule of Concentration Risk of Lease Rental Income/Gross Accounts Receivable | Company’s lease rental income from its owned fleet for the three months ended March 31, 2021 and 2020 and more than 10% of the Company’s gross accounts receivable from its owned fleet as of March 31, 2021 and December 31, 2020: Three Months Ended March 31, Lease Rental Income - owned fleet 2021 2020 Customer A 20.5% 16.9% Customer B 17.8% 6.7% Customer C 12.0% 13.2% |
Schedule of Concentration Risk of Total Fleet Lease Rental Income/Gross Accounts Receivable | Except for the lessees noted in the tables below, no other single lessee accounted for more than 10% of the Company’s total fleet lease rental income for the three months ended March 31, 2021 and 2020 and more than 10% of the Company’s gross accounts receivable from its total fleet as of March 31, 2021 and December 31, 2020. Three Months Ended March 31, Lease Rental Income - total fleet 2021 2020 Customer A 19.8% 16.5% Customer B 17.4% 6.7% Customer C 12.3% 14.4% |
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 March 31, Share amounts in thousands 2021 2020 Numerator: Net income (loss) attributable to Textainer Group Holdings Limited common shareholders $ 62,050 $ (4,379 ) Denominator: Weighted average common shares outstanding - basic 50,150 56,455 Dilutive share options, RSU and PSU 715 — Weighted average common shares outstanding - diluted 50,865 56,455 Net income (loss) attributable to Textainer Group Holdings Limited common shareholders per common share Basic $ 1.24 $ (0.08 ) Diluted $ 1.22 $ (0.08 ) Share options, RSU and PSU excluded from the computation of diluted EPS because they were anti-dilutive 697 2,147 |
Accounts Receivable | |
Schedule of Concentration Risk of Lease Rental Income/Gross Accounts Receivable | Gross Accounts Receivable- owned fleet March 31, 2021 December 31, 2020 Customer A 29.2% 30.3% Customer B 11.7% 10.3% Customer C 12.2% 12.9% |
Schedule of Concentration Risk of Total Fleet Lease Rental Income/Gross Accounts Receivable | Gross Accounts Receivable- total fleet March 31, 2021 December 31, 2020 Customer A 36.5% 37.7% Customer B 9.3% 16.7% Customer C 11.7% 11.6% |
Managed Container Fleet (Tables
Managed Container Fleet (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020, which consisted of the following: March 31, 2021 December 31, 2020 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Containers - owned fleet $ 6,080,198 $ (1,674,527 ) $ 4,405,671 $ 5,740,717 $ (1,619,304 ) $ 4,121,413 Containers - managed fleet 10,717 (380 ) 10,337 3,926 (287 ) $ 3,639 Total containers $ 6,090,915 $ (1,674,907 ) $ 4,416,008 $ 5,744,643 $ (1,619,591 ) $ 4,125,052 |
Summary of Total Lease Management Fee Income from Managed Fleet, Including Management Fees Earned from Acquisition Fees and Sales Commissions | Total management fee income from the managed fleet, including management fees earned from acquisition fees and sales commissions during the three months ended March 31, 2021 and 2020 were as follows (see Note 5 “Transactions with Affiliates and Container Investors”): Three Months Ended March 31, 2021 2020 Lease rental income - managed fleet $ 14,821 $ 15,406 Less: distribution expense to managed fleet container investors (13,495 ) (14,163 ) Less: depreciation and interest expense on managed containers purchased on or after January 1, 2019 (169 ) (239 ) Management fees from leasing 1,157 1,004 Management fees from non-leasing services 1,036 1,484 Total management fees $ 2,193 $ 2,488 |
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 March 31, 2021 and December 31, 2020 in the condensed consolidated balance sheets (also, see Note 5 “Transactions with Affiliates and Container Investors”): March 31, 2021 December 31, 2020 Accounts receivable, net - owned fleet $ 101,328 $ 97,950 Accounts receivable, net - managed fleet 9,666 10,628 Total accounts receivable, net $ 110,994 $ 108,578 Prepaid expenses and other current assets - owned fleet $ 12,334 $ 13,614 Prepaid expenses and other current assets - managed fleet 97 99 Total prepaid expenses and other current assets $ 12,431 $ 13,713 Accounts payable and accrued expenses - owned fleet $ 16,565 $ 23,198 Accounts payable and accrued expenses - managed fleet 701 1,187 Total accounts payable and accrued expenses $ 17,266 $ 24,385 Container contracts payable - owned fleet $ 489,922 $ 231,647 Total container contracts payable $ 489,922 $ 231,647 |
Transactions with Affiliates _2
Transactions with Affiliates and Container Investors (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Due to Container Investors, Net | The following table provides a summary of due to container investors, net amounts at March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Accounts receivable, net - managed fleet $ 9,666 $ 10,628 Prepaid expenses and other current assets - managed fleet 97 99 Accounts payable and accrued expenses - managed fleet (701 ) (1,187 ) 9,062 9,540 Distributions due to container investors on lease rentals collected, net of container expenses paid and management fees 15,782 9,157 Due to container investors, net $ 24,844 $ 18,697 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Rental Income | The Company’s lease rental income for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 Owned Managed Total Owned Managed Total Lease rental income - operating leases $ 130,914 $ 14,446 $ 145,360 $ 115,803 $ 14,514 $ 130,317 Interest income on net investment in finance leases 14,643 — 14,643 5,284 — 5,284 Interest income on container leaseback financing receivable 5,438 — 5,438 4,006 — 4,006 Variable lease revenue 3,428 375 3,803 4,979 892 5,871 Total lease rental income $ 154,423 $ 14,821 $ 169,244 $ 130,072 $ 15,406 $ 145,478 |
Schedule Future Minimum Lease Payments Receivable | Operating Leases The following is a schedule, by year, of future minimum lease payments receivable under the long-term leases for the owned and managed container fleet as of March 31, 2021: Owned Managed Total Twelve months ending March 31: 2022 381,750 30,103 411,853 2023 332,258 19,109 351,367 2024 281,146 16,508 297,654 2025 224,292 12,156 236,448 2026 150,686 8,221 158,907 2027 and thereafter 186,684 11,891 198,575 Total future minimum lease payments receivable $ 1,556,816 $ 97,988 $ 1,654,804 |
Schedule of Components of Net Investment in Finance Leases | The following table represents the components of the net investment in finance leases as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Future minimum lease payments receivable $ 1,500,200 $ 1,216,086 Residual value of containers 17,354 12,601 Less: unearned income (446,292 ) (347,394 ) Net investment in finance leases (1) $ 1,071,262 $ 881,293 Less: Allowance for credit losses (642 ) (1,333 ) Net investment in finance leases, net $ 1,070,620 $ 879,960 Amounts due within one year $ 87,451 $ 78,459 Amounts due beyond one year 983,169 801,501 Net investment in finance leases, net $ 1,070,620 $ 879,960 (1) One major customer represented 78.3% and 80.1% of the Company’s finance leases portfolio as of March 31, 2021 and December 31, 2020, respectively. No other customer represented more than 10% of the Company’s finance leases portfolio in each of those periods. |
Schedule of Components of Container Leaseback Financing Receivable | The following table represents the components of the container leaseback financing receivable as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Future minimum payments receivable $ 502,735 $ 505,473 Less: unearned income (138,825 ) (141,181 ) Container leaseback financing receivable (1) 363,910 $ 364,292 Less: Allowance for credit losses (156 ) (424 ) Container leaseback financing receivable, net $ 363,754 $ 363,868 Amounts due within one year 28,495 27,076 Amounts due beyond one year 335,259 336,792 Container leaseback financing receivable, net $ 363,754 $ 363,868 (1) As of March 31, 2021, two customers represented 88.6% and 9.7% of the Company’s container leaseback financing receivable portfolio. |
Summary of Future Minimum Payments Receivable Under Net Investment in Finance Leases and Container Leaseback Financing Receivable | The following is a schedule by year of future minimum lease payments receivable under the net investment in finance leases and container leaseback financing receivable as of March 31, 2021: Twelve months ending March 31: Net Investment in Finance Leases Container Leaseback Financing Receivable Total 2022 148,625 49,300 197,925 2023 125,940 49,300 175,240 2024 119,638 49,435 169,073 2025 113,666 42,237 155,903 2026 112,741 37,433 150,174 2027 and thereafter 879,590 275,030 1,154,620 Total future minimum lease payments receivable $ 1,500,200 $ 502,735 $ 2,002,935 |
Schedule of Other Information Related to Operating Leases | Other information related to the Company's operating leases are as follows: Three Months Ended March 31, 2021 2020 Operating lease cost $ 526 $ 527 Short-term and variable lease cost 31 31 Total rent expense $ 557 $ 558 Cash paid for amounts included in the measurement of lease liabilities $ 587 $ 623 |
Minimum Lease Payment under Noncancelable Operating Leases | Future minimum lease payment obligations under the Company’s noncancelable operating leases at March 31, 2021 were as follows: Operating Leases Twelve months ending March 31: 2022 2,224 2023 2,269 2024 2,343 2025 2,265 2026 2,138 2027 and thereafter 2,569 Total minimum lease payments 13,808 Less imputed interest (1,631 ) Total present value of operating lease liabilities $ 12,177 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021: Three Months Ended March 31, 2021 2020 2019 2018 2017 Prior Total Tier 1 $ 103,784 $ 635,976 $ 109,735 $ 35,058 $ 7,138 $ 33,973 $ 925,664 Tier 2 25,706 40,219 36,430 20,558 42 7,313 130,268 Tier 3 4,415 2,784 6,768 707 — 656 15,330 Net investment in finance leases $ 133,905 $ 678,979 $ 152,933 $ 56,323 $ 7,180 $ 41,942 $ 1,071,262 Tier 1 $ — $ 112,066 $ 210,460 $ — $ — $ — $ 322,526 Tier 2 6,153 — 35,231 — — — 41,384 Tier 3 — — — — — — — Container leaseback financing receivable $ 6,153 $ 112,066 $ 245,691 $ — $ — $ — $ 363,910 |
Debt and Derivative Instrumen_2
Debt and Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Obligation | Debt The following represents the Company’s debt obligations as of March 31, 2021 and December 31, 2020: Secured Debt Facilities, Revolving Credit Facilities, Term Loan and Bonds Payable March 31, 2021 December 31, 2020 Outstanding Average Interest Outstanding Average Interest Final Maturity TL Revolving Credit Facility $ 1,158,837 1.61 % $ 1,433,919 1.65 % September 2023 TL 2019 Term Loan 145,512 3.50 % 148,131 3.50 % December 2026 TL 2021 Term Loan 69,039 2.65 % — 0.00 % February 2028 TMCL II Secured Debt Facility (1) 669,221 1.91 % 646,551 1.91 % July 2026 TMCL VI Term Loan 217,440 4.29 % 223,630 4.29 % February 2038 TMCL VII 2019-1 Bonds 293,477 4.02 % 300,305 4.02 % April 2044 TMCL VII 2020-1 Bonds 418,242 3.07 % 429,600 3.07 % August 2045 TMCL VII 2020-2 Bonds 573,256 2.26 % 587,183 2.26 % September 2045 TMCL VII 2020-3 Bonds 209,232 2.15 % 214,168 2.15 % September 2045 TMCL VII 2021-1 Bonds 540,170 1.72 % — 0.00 % February 2046 TAP Funding Revolving Credit Facility — — 131,857 2.11 % December 2021 Total debt obligations $ 4,294,426 $ 4,115,344 Amount due within one year $ 295,518 $ 408,365 Amounts due beyond one year $ 3,998,908 $ 3,706,979 (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. |
Summary of Outstanding Borrowings and Borrowing Capacities | T he following is a schedule of the Company’s outstanding borrowings and borrowing capacities, as of March 31, 2021: Total Borrowing Available Borrowing, as limited by the Borrowing Base Current and Available Borrowing, as limited by the Borrowing Base Total Commitment TL Revolving Credit Facility $ 1,163,000 $ 166,388 $ 1,329,388 $ 1,500,000 TL 2019 Term Loan 146,788 — 146,788 146,788 TL 2021 Term Loan 69,827 — 69,827 69,827 TMCL II Secured Debt Facility 671,731 — 671,731 1,200,000 TMCL VI Term Loan 218,821 — 218,821 218,821 TMCL VII 2019-1 Bonds (1) 296,334 — 296,334 296,334 TMCL VII 2020-1 Bonds (1) 422,644 — 422,644 422,644 TMCL VII 2020-2 Bonds (1) 579,382 — 579,382 579,382 TMCL VII 2020-3 Bonds (1) 210,945 — 210,945 210,945 TMCL VII 2021-1 Bonds (1) 546,332 — 546,332 546,332 Total (2) $ 4,325,804 $ 166,388 $ 4,492,192 $ 5,191,073 ( 1 ) Amounts on the TMCL VII 2019-1 Bonds, 2020-1 Bonds, 2020-2 Bonds, 2020-3 Bonds and 2021-1 Bonds, exclude an unamortized discount of $77, $74, $149, $78 and $167, respectively. ( 2 ) Total borrowing for all debts excludes unamortized prepaid debt issuance costs in an aggregate amount of $30,833. |
Summary of Fair Value of Derivative Instruments Reflected on Gross Basis on Condensed Consolidated Balance Sheets | The following table summarizes the fair value of the derivative instruments that were reflected on a gross basis on the condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Assets Interest rate swaps - designated as hedges $ 2,188 $ 47 Total $ 2,188 $ 47 Liabilities Interest rate swaps - designated as hedges $ 6,171 $ 9,665 Interest rate swaps - not designated as hedges 14,477 19,570 Total $ 20,648 $ 29,235 |
Summary of Derivative Instruments | The following is a summary of the Company’s derivative instruments as of March 31, 2021: Notional Derivative instruments amount Interest rate swap contracts with several banks, with fixed rates between 1.73% and 2.94% per annum, amortizing notional amounts, with termination dates through January 15, 2023, non-designated $ 452,500 Interest rate swap contracts with several banks, with fixed rates between 0.17% and 1.58% per annum, amortizing notional amounts, with termination dates through April 30, 2027, designated 708,250 Interest rate cap contract at 3.11% fixed rate with a termination date of March 31, 2022 70,000 Total notional amount as of March 31, 2021 $ 1,230,750 |
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 months ended March 31, 2021 and 2020: Three Months Ended March 31, Derivative instruments Financial Statement Caption 2021 2020 Non-designated Realized loss on derivative instruments, net $ (2,956 ) $ (1,526 ) Non-designated Unrealized gain (loss) on derivative instruments, net $ 3,192 $ (14,937 ) Designated Other comprehensive income (loss) $ 4,442 $ (8,858 ) Designated Interest (expense) income, net $ (1,194 ) $ 62 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information Reconciled to Income Before Income Taxes and Noncontrolling Interest | The following tables show segment information for the three months ended March 31, 2021 and 2020, reconciled to the Company’s income before income taxes and noncontrolling interests as shown in its condensed consolidated statements of operations: Container Container Container Three Months Ended March 31, 2021 Ownership Management Resale Other Eliminations Totals Lease rental income - owned fleet $ 154,290 $ 133 $ - $ - $ - $ 154,423 Lease rental income - managed fleet - 14,821 - - - 14,821 Lease rental income $ 154,290 $ 14,954 $ - $ - $ - $ 169,244 Management fees - non-leasing from external customers $ - $ 67 $ 969 $ - $ - $ 1,036 Inter-segment management fees $ - $ 20,439 $ 2,448 $ - $ (22,887 ) $ - Trading container margin $ - $ - $ 2,166 $ - $ - $ 2,166 Gain on sale of owned fleet containers, net $ 12,358 $ - $ - $ - $ - $ 12,358 Depreciation expense $ 67,703 $ 226 $ - $ - $ (2,123 ) $ 65,806 Container lessee default recovery, net $ 3,968 $ - $ - $ - $ - $ 3,968 Interest expense $ 29,032 $ 74 $ - $ - $ - $ 29,106 Write-off of unamortized debt issuance costs $ 267 $ - $ - $ - $ - $ 267 Realized loss on derivative instruments, net $ 2,956 $ - $ - $ - $ - $ 2,956 Unrealized gain on derivative instruments, net $ 3,192 $ - $ - $ - $ - $ 3,192 Segment income (loss) before income tax and noncontrolling interests $ 52,285 $ 12,280 $ 4,185 $ (773 ) $ (4,861 ) $ 63,116 Total assets $ 6,119,382 $ 203,430 $ 8,408 $ 11,690 $ (119,198 ) $ 6,223,712 Purchase of containers and fixed assets $ 570,257 $ 13 $ - $ - $ - $ 570,270 Payments on container leaseback financing receivable $ 6,425 $ - $ - $ - $ - $ 6,425 Container Container Container Three Months Ended March 31, 2020 Ownership Management Resale Other Eliminations Totals Lease rental income - owned fleet $ 129,850 $ 222 $ - $ - $ - $ 130,072 Lease rental income - managed fleet - 15,406 - - - 15,406 Lease rental income $ 129,850 $ 15,628 $ - $ - $ - $ 145,478 Management fees - non-leasing from external customers $ 98 $ 555 # $ 831 $ - $ - $ 1,484 Inter-segment management fees $ - $ 9,745 $ 2,421 $ - $ (12,166 ) $ - Trading container margin $ - $ - $ 649 $ - $ - $ 649 Gain on sale of owned fleet containers, net $ 5,794 $ - $ - $ - $ - $ 5,794 Depreciation expense $ 68,356 $ 341 $ - $ - $ (1,863 ) $ 66,834 Container lessee default recovery, net $ 12 $ - $ - $ - $ - $ 12 Interest expense $ 35,956 $ 156 $ - $ - $ - $ 36,112 Write-off of unamortized debt issuance costs $ 122 $ - $ - $ - $ - $ 122 Realized loss on derivative instruments, net $ 1,526 $ - $ - $ - $ - $ 1,526 Unrealized loss on derivative instruments, net $ 14,937 $ - $ - $ - $ - $ 14,937 Segment (loss) income before income tax and noncontrolling interests $ (12,051 ) $ 2,610 $ 2,758 $ (1,062 ) $ 1,804 $ (5,941 ) Total assets $ 4,954,452 $ 154,857 $ 17,198 $ 8,293 $ (80,994 ) $ 5,053,806 Purchase of containers and fixed assets $ 6,957 $ 192 $ - $ - $ - $ 7,149 (1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized gain (loss) on derivative instruments, net of $3,192 and $(14,937) for the three months ended March 31, 2021 and 2020, respectively, and write-off of unamortized debt issuance costs of $267 and $122 for the three months ended March 31, 2021 and 2020, respectively. |
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 months ended March 31, 2021 and 2020 based on customers’ and Container Investors’ primary domicile, respectively: Three Months Ended March 31, 2021 Percent of Total 2020 Percent of Total Lease rental income: Asia $ 85,193 50.3 % $ 72,795 50.0 % Europe 76,275 45.1 % 64,727 44.5 % North / South America 7,359 4.3 % 7,318 5.0 % All other international 417 0.3 % 638 0.5 % $ 169,244 100.0 % $ 145,478 100.0 % Management fees, non-leasing: Bermuda $ 589 56.9 % $ 982 66.2 % Europe 437 42.2 % 199 13.4 % Asia 3 0.3 % 3 0.2 % North / South America 1 0.1 % 4 0.3 % All other international 6 0.5 % 296 19.9 % $ 1,036 100.0 % $ 1,484 100.0 % |
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 months ended March 31, 2021 and 2020 based on the location of sale: Three Months Ended March 31, 2021 Percent of Total 2020 Percent of Total Trading container sales proceeds: North / South America $ 4,170 54.8 % $ 2,721 28.4 % Asia 1,776 23.3 % 5,778 60.2 % Europe 1,665 21.9 % 1,081 11.3 % All other international — — 5 0.1 % $ 7,611 100.0 % $ 9,585 100.0 % Gain on sale of owned fleet containers, net: Europe $ 8,310 67.2 % $ 1,044 18.0 % North / South America 2,207 17.9 % 1,100 19.0 % Asia 1,841 14.9 % 2,446 42.2 % All other international — — 1,204 20.8 % $ 12,358 100.0 % $ 5,794 100.0 % |
Accounting Policy Updates and_4
Accounting Policy Updates and Recent Accounting Pronouncements - Additional Information (Detail) | Jan. 01, 2021USD ($) | Jan. 31, 2021USD ($) | Mar. 31, 2021USD ($)Lessee | Mar. 31, 2020USD ($)Lessee | Dec. 31, 2020USD ($)Lessee | Feb. 01, 2021 |
Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||||
Total purchase price consideration | $ 21,500,000 | |||||
Noncontrolling interest | 0 | $ 27,110,000 | ||||
Net loss attributable to noncontrolling interest | 0 | $ (729,000) | ||||
Fair value of net investment in direct financing and sales-type leases | 1,064,927,000 | 856,392,000 | ||||
Net investment in direct financing and sales-type leases | 1,070,620,000 | 879,960,000 | ||||
Fair value of container leaseback financing receivable | 366,534,000 | 363,774,000 | ||||
Net of container leaseback financing receivable | 363,754,000 | 363,868,000 | ||||
Fair value of long-term debt | 4,325,580,000 | 4,144,332,000 | ||||
Long-term debt | $ 4,294,426,000 | $ 4,115,344,000 | ||||
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 | ||||
Accounts Receivable | Customer Concentration Risk | ||||||
Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||||
Number of lessees that accounted for more than 10% of gross accounts receivable | Lessee | 0 | 0 | ||||
Total Fleet 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 | ||||
Gross Accounts Receivable | Customer Concentration Risk | ||||||
Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||||
Number of lessees that accounted for more than 10% of gross accounts receivable | 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 | $ 1,650,000 | $ 5,845,000 | ||||
Insolvent Customer | ||||||
Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||||
Gain on container recovery | 7,577,000 | |||||
Containers | ||||||
Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||||
Impairment charges of long lived assets held for use | 0 | $ 0 | ||||
Impairment (recovery) charges to write-off containers | 1,865,000 | 0 | ||||
Gain on container recovery | 7,577,000 | 1,000 | ||||
Containers for Sale | ||||||
Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||||
Container write-off (recovery) to write down value, held for sale, net of reversals | $ (839,000) | $ 4,586,000 | ||||
TL | ||||||
Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||||
Ownership percentage in TAP Funding Ltd. | 50.10% | |||||
Tap Funding Limited | ||||||
Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||||
Ownership percentage in TAP Funding Ltd. | 49.90% | 49.90% | 100.00% | |||
Total purchase price consideration | $ 21,500,000 | |||||
Increase in additional paid-in capital | $ 7,022,000 |
Schedule of Cost, Accumulated D
Schedule of Cost, Accumulated Depreciation and Net Book Value of the Company's Leasing Equipment by Equipment Type (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Containers, cost | $ 6,090,915 | $ 5,744,643 |
Containers, accumulated depreciation | (1,674,907) | (1,619,591) |
Containers, net book value | 4,416,008 | 4,125,052 |
Dry Containers Other Than Open Top And Flat Rack Containers, 20' | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 1,535,540 | 1,532,753 |
Containers, accumulated depreciation | (440,838) | (428,913) |
Containers, net book value | 1,094,702 | 1,103,840 |
Dry Containers Other Than Open Top And Flat Rack Containers, 40' | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 143,096 | 144,881 |
Containers, accumulated depreciation | (55,718) | (55,154) |
Containers, net book value | 87,378 | 89,727 |
Dry Containers Other Than Open Top And Flat Rack Containers, 40' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 3,047,156 | 2,717,384 |
Containers, accumulated depreciation | (698,167) | (672,416) |
Containers, net book value | 2,348,989 | 2,044,968 |
Dry Containers Other Than Open Top And Flat Rack Containers, 45' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 34,444 | 27,880 |
Containers, accumulated depreciation | (13,038) | (12,747) |
Containers, net book value | 21,406 | 15,133 |
Refrigerated Containers, 20' | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 19,997 | 20,164 |
Containers, accumulated depreciation | (8,749) | (8,493) |
Containers, net book value | 11,248 | 11,671 |
Refrigerated Containers, 20' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 1,720 | 2,605 |
Containers, accumulated depreciation | (1,283) | (1,742) |
Containers, net book value | 437 | 863 |
Refrigerated Containers, 40' High Cube | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 1,112,362 | 1,103,817 |
Containers, accumulated depreciation | (414,542) | (398,721) |
Containers, net book value | 697,820 | 705,096 |
Open Top and Flat Rack Containers, 20' Folding Flat Rack | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 16,967 | 17,228 |
Containers, accumulated depreciation | (5,055) | (5,132) |
Containers, net book value | 11,912 | 12,096 |
Open Top And Flat Rack Containers, 40' Folding Flat Rack | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 48,727 | 49,167 |
Containers, accumulated depreciation | (18,060) | (18,275) |
Containers, net book value | 30,667 | 30,892 |
Open Top And Flat Rack Containers, 20' Open Top | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 13,243 | 13,253 |
Containers, accumulated depreciation | (1,875) | (1,790) |
Containers, net book value | 11,368 | 11,463 |
Open Top And Flat Rack Containers, 40' Open Top | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 22,658 | 22,271 |
Containers, accumulated depreciation | (4,782) | (4,738) |
Containers, net book value | 17,876 | 17,533 |
Tank containers | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 95,005 | 93,240 |
Containers, accumulated depreciation | (12,800) | (11,470) |
Containers, net book value | $ 82,205 | $ 81,770 |
Schedule of Concentration Risk
Schedule of Concentration Risk of Lease Rental Income (Detail) - Lease Rental Income - Customer Concentration Risk | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 20.50% | 16.90% |
Customer B | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 17.80% | 6.70% |
Customer C | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 12.00% | 13.20% |
Schedule of Concentration Ris_2
Schedule of Concentration Risk of Gross Accounts Receivable From Owned Fleet (Detail) - Accounts Receivable - Customer Concentration Risk | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Customer C | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 12.20% | 12.90% |
Customer A | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 29.20% | 30.30% |
Customer B | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 11.70% | 10.30% |
Schedule of Concentration Ris_3
Schedule of Concentration Risk of Total Fleet Lease Rental Income (Detail) - Total Fleet Lease Rental Income - Customer Concentration Risk | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Customer A | ||
Capital Leased Assets [Line Items] | ||
Percentage of lease rental income | 19.80% | 16.50% |
Customer B | ||
Capital Leased Assets [Line Items] | ||
Percentage of lease rental income | 17.40% | 6.70% |
Customer C | ||
Capital Leased Assets [Line Items] | ||
Percentage of lease rental income | 12.30% | 14.40% |
Schedule of Concentration Ris_4
Schedule of Concentration Risk of Total Fleet Gross Accounts Receivable (Detail) - Gross Accounts Receivable - Customer Concentration Risk | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Customer C | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 11.70% | 11.60% |
Customer A | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 36.50% | 37.70% |
Customer B | ||
Concentration Risk [Line Items] | ||
Percentage of lease rental income | 9.30% | 16.70% |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net (loss) income attributable to Textainer Group Holdings Limited common shareholders | $ 62,050 | $ (4,379) |
Weighted average shares outstanding (in thousands): | ||
Weighted average common shares outstanding - basic | 50,150 | 56,455 |
Dilutive share options, RSU and PSU | 715 | |
Weighted average common shares outstanding - diluted | 50,865 | 56,455 |
Net income (loss) attributable to Textainer Group Holdings Limited common shareholders per common share | ||
Basic | $ 1.24 | $ (0.08) |
Diluted | $ 1.22 | $ (0.08) |
Share options, RSU and PSU excluded from the computation of diluted EPS because they were anti-dilutive | 697 | 2,147 |
Insurance Receivable and Impa_2
Insurance Receivable and Impairment - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Leases Disclosure [Line Items] | |||
Containers, net book value | $ 4,416,008,000 | $ 4,125,052,000 | |
Bad debt expense | (1,127,000) | $ 2,045,000 | |
Insolvent Customer | |||
Leases Disclosure [Line Items] | |||
Container loss recovery | 7,986,000 | ||
Insurance receivable associated with this insolvent customer | 0 | 2,106,000 | |
Book value of containers that would not be recovered from insolvent customer | 1,581,000 | ||
Bad debt expense | $ 378,000 | ||
Insolvent Customer | Owned Containers | |||
Leases Disclosure [Line Items] | |||
Containers, net book value | 10,538,000 | ||
Insolvent Customer | Container Unrecoverable in Lessees Insolvency | |||
Leases Disclosure [Line Items] | |||
Asset impairment charges | $ 1,581,000 |
Managed Container Fleet - Addit
Managed Container Fleet - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Deferred revenue from acquisition fees | $ 1,121 | $ 1,049 |
Managed Containers | ||
Property, Plant and Equipment [Line Items] | ||
Containers, leaseback financial liability | $ 11,457 | $ 4,762 |
Schedule of Company's Leasing E
Schedule of Company's Leasing Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Containers, cost | $ 6,090,915 | $ 5,744,643 |
Containers, accumulated depreciation | (1,674,907) | (1,619,591) |
Containers, net book value | 4,416,008 | 4,125,052 |
Containers - Owned Fleet | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 6,080,198 | 5,740,717 |
Containers, accumulated depreciation | (1,674,527) | (1,619,304) |
Containers, net book value | 4,405,671 | 4,121,413 |
Containers - Managed Fleet | ||
Property, Plant and Equipment [Line Items] | ||
Containers, cost | 10,717 | 3,926 |
Containers, accumulated depreciation | (380) | (287) |
Containers, net book value | $ 10,337 | $ 3,639 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Lease rental income - managed fleet | $ 14,821 | $ 15,406 |
Less: distribution expense to managed fleet container investors | (13,495) | (14,163) |
Less: depreciation and interest expense on managed containers purchased on or after January 1, 2019 | (169) | (239) |
Leasing | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 1,157 | 1,004 |
Other Services | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 1,036 | 1,484 |
Total Management Fees | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 2,193 | $ 2,488 |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Reconciliation Of Current Assets And Liabilities [Line Items] | ||
Total accounts receivable, net | $ 110,994 | $ 108,578 |
Total prepaid expenses and other current assets | 12,431 | 13,713 |
Total accounts payable and accrued expenses | 17,266 | 24,385 |
Total container contracts payable | 489,922 | 231,647 |
Owned Fleet | ||
Reconciliation Of Current Assets And Liabilities [Line Items] | ||
Total accounts receivable, net | 101,328 | 97,950 |
Total prepaid expenses and other current assets | 12,334 | 13,614 |
Total accounts payable and accrued expenses | 16,565 | 23,198 |
Total container contracts payable | 489,922 | 231,647 |
Managed Fleet | ||
Reconciliation Of Current Assets And Liabilities [Line Items] | ||
Total accounts receivable, net | 9,666 | 10,628 |
Total prepaid expenses and other current assets | 97 | 99 |
Total accounts payable and accrued expenses | $ 701 | $ 1,187 |
Transactions with Affiliates _3
Transactions with Affiliates and Container Investors - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Related Party Transactions [Abstract] | ||
Due from affiliates, net | $ 1,998 | $ 1,509 |
Summary of Due to Container Inv
Summary of Due to Container Investors, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Distributions due to container investors on lease rentals collected, net of container expenses paid and management fees | $ 15,782 | $ 9,157 |
Due to container investors, net | 24,844 | 18,697 |
Managed Fleet | ||
Related Party Transaction [Line Items] | ||
Accounts receivable | 9,666 | 10,628 |
Prepaid expenses and other current assets | 97 | 99 |
Accounts payable and accrued expenses | (701) | (1,187) |
Due from to related party | $ 9,062 | $ 9,540 |
Schedule of Lease Rental Income
Schedule of Lease Rental Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lessor Lease Description [Line Items] | ||
Lease rental income - operating leases | $ 145,360 | $ 130,317 |
Interest income on net investment in finance leases | 14,643 | 5,284 |
Interest income on container leaseback financing receivable | 5,438 | 4,006 |
Variable lease revenue | 3,803 | 5,871 |
Total lease rental income | 169,244 | 145,478 |
Owned Fleet | ||
Lessor Lease Description [Line Items] | ||
Lease rental income - operating leases | 130,914 | 115,803 |
Interest income on net investment in finance leases | 14,643 | 5,284 |
Interest income on container leaseback financing receivable | 5,438 | 4,006 |
Variable lease revenue | 3,428 | 4,979 |
Total lease rental income | 154,423 | 130,072 |
Managed Fleet | ||
Lessor Lease Description [Line Items] | ||
Lease rental income - operating leases | 14,446 | 14,514 |
Variable lease revenue | 375 | 892 |
Total lease rental income | $ 14,821 | $ 15,406 |
Leases - Lessor - Additional In
Leases - Lessor - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lessor Disclosure [Abstract] | ||
Direct financing and sales-type leases, (loss) gain | $ 435 | $ (9) |
Schedule Future Minimum Lease P
Schedule Future Minimum Lease Payments Receivable (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Lessor Lease Description [Line Items] | |
2022 | $ 411,853 |
2023 | 351,367 |
2024 | 297,654 |
2025 | 236,448 |
2026 | 158,907 |
2027 and thereafter | 198,575 |
Total future minimum lease payments receivable | 1,654,804 |
Owned Fleet | |
Lessor Lease Description [Line Items] | |
2022 | 381,750 |
2023 | 332,258 |
2024 | 281,146 |
2025 | 224,292 |
2026 | 150,686 |
2027 and thereafter | 186,684 |
Total future minimum lease payments receivable | 1,556,816 |
Managed Fleet | |
Lessor Lease Description [Line Items] | |
2022 | 30,103 |
2023 | 19,109 |
2024 | 16,508 |
2025 | 12,156 |
2026 | 8,221 |
2027 and thereafter | 11,891 |
Total future minimum lease payments receivable | $ 97,988 |
Components of net Investment in
Components of net Investment in Direct Financing and Sales-Type Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Future minimum lease payments receivable | $ 1,500,200 | $ 1,216,086 | |
Residual value of containers | 17,354 | 12,601 | |
Less: unearned income | (446,292) | (347,394) | |
Net investment in finance leases | [1] | 1,071,262 | 881,293 |
Less: Allowance for credit losses | (642) | (1,333) | |
Net investment in finance leases, net | 1,070,620 | 879,960 | |
Amounts due within one year | 87,451 | 78,459 | |
Amounts due beyond one year | $ 983,169 | $ 801,501 | |
[1] | One major customer represented 78.3% and 80.1% of the Company’s finance leases portfolio as of March 31, 2021 and December 31, 2020, respectively. No other customer represented more than 10% of the Company’s finance leases portfolio in each of those periods. |
Components of net Investment _2
Components of net Investment in Direct Financing and Sales-Type Leases (Parenthetical) (Detail) - Customer | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Capital Leased Assets [Line Items] | ||
Number of customers represent direct financing and sales-type leases portfolio | 1 | 1 |
Customer One | ||
Capital Leased Assets [Line Items] | ||
Percentage of direct financing and sales-type leases portfolio | 78.30% | 80.10% |
Summary of Future Minimum Payme
Summary of Future Minimum Payments Receivable Under Container Leaseback Financing Receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Lessor Disclosure [Abstract] | |||
Future minimum payments receivable | $ 502,735 | $ 505,473 | |
Less: unearned income | (138,825) | (141,181) | |
Container leaseback financing receivable | [1],[2] | 363,910 | 364,292 |
Less: Allowance for credit losses | (156) | (424) | |
Container leaseback financing receivable, net | 363,754 | 363,868 | |
Amounts due within one year | 28,495 | 27,076 | |
Amounts due beyond one year | $ 335,259 | $ 336,792 | |
[1] | As of March 31, 2021, two customers represented 88.6% and 9.7% of the Company’s container leaseback financing receivable portfolio. | ||
[2] | As of March 31, 2021, two customers represented 88.6% and 9.7% of the Company’s container leaseback financing receivable portfolio. |
Summary of Future Minimum Pay_2
Summary of Future Minimum Payments Receivable Under Container Leaseback Financing Receivable (Parenthetical) (Detail) - Customer | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Lessor Lease Description [Line Items] | ||
Number of customers represent container leaseback financing receivable portfolio | 2 | 2 |
Customer One | ||
Lessor Lease Description [Line Items] | ||
Percentage of container leaseback financing receivable portfolio | 88.60% | 89.70% |
Customer Two | ||
Lessor Lease Description [Line Items] | ||
Percentage of container leaseback financing receivable portfolio | 9.70% | 10.30% |
Future Minimum Lease Payments R
Future Minimum Lease Payments Receivable under Direct Financing and Sales-type Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Net investment in finance leases, 2022 | $ 148,625 | |
Net investment in finance leases, 2023 | 125,940 | |
Net investment in finance leases, 2024 | 119,638 | |
Net investment in finance leases, 2025 | 113,666 | |
Net investment in finance leases, 2026 | 112,741 | |
Net investment in finance leases, 2027 and thereafter | 879,590 | |
Net investment in finance leases, Total future minimum lease payments receivable | 1,500,200 | $ 1,216,086 |
Container leaseback financing receivable, 2022 | 49,300 | |
Container leaseback financing receivable, 2023 | 49,300 | |
Container leaseback financing receivable, 2024 | 49,435 | |
Container leaseback financing receivable, 2025 | 42,237 | |
Container leaseback financing receivable, 2026 | 37,433 | |
Container leaseback financing receivable, 2026 and thereafter | 275,030 | |
Container leaseback financing receivable, Total future minimum lease payments receivable | 502,735 | $ 505,473 |
Future minimum lease payments receivable, 2022 | 197,925 | |
Future minimum lease payments receivable, 2023 | 175,240 | |
Future minimum lease payments receivable, 2024 | 169,073 | |
Future minimum lease payments receivable, 2025 | 155,903 | |
Future minimum lease payments receivable, 2026 | 150,174 | |
Future minimum lease payments receivable, 2027 and thereafter | 1,154,620 | |
Total future minimum lease payments receivable | $ 2,002,935 |
Leases - Lessee - Additional In
Leases - Lessee - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Lessee Lease Description [Line Items] | ||
Right-of-use lease assets | $ 9,927 | $ 10,331 |
Operating lease liabilities | $ 12,177 | |
Weighted-average discount rate | 4.60% | |
Weighted-average remaining lease term | 5 years | |
Other Liabilities | ||
Lessee Lease Description [Line Items] | ||
Operating lease liabilities | $ 12,177 | $ 12,636 |
Schedule of Other Information R
Schedule of Other Information Related to Operating Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lessee Disclosure [Abstract] | ||
Operating lease cost | $ 526 | $ 527 |
Short-term and variable lease cost | 31 | 31 |
Total rent expense | 557 | 558 |
Cash paid for amounts included in the measurement of lease liabilities | $ 587 | $ 623 |
Minimum Lease Payment under Non
Minimum Lease Payment under Noncancelable Operating Leases (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2022 | $ 2,224 |
2023 | 2,269 |
2024 | 2,343 |
2025 | 2,265 |
2026 | 2,138 |
2027 and thereafter | 2,569 |
Total minimum lease payments | 13,808 |
Less imputed interest | (1,631) |
Total present value of operating lease liabilities | $ 12,177 |
Operating Lease Liability Statement Of Financial Position [Extensible List] | Other Liabilities |
Allowance for Credit Losses - A
Allowance for Credit Losses - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable, allowance | $ 2,088 | $ 2,663 |
Billed | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable, allowance | 2,088 | 2,663 |
Billed | Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable, allowance | 0 | 0 |
Billed | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable, allowance | 650 | 735 |
Unbilled | Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Container leaseback financing receivable, allowance for credit losses | 156 | 424 |
Unbilled | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Net investment in finance leases, allowance for credit loss | $ 642 | $ 1,333 |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Net investment in finance leases, net | $ 1,070,620 | $ 879,960 |
Container leaseback financing receivable, net | 363,754 | $ 363,868 |
Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Three Months Ended March 31, 2021 | 133,905 | |
2020 | 678,979 | |
2019 | 152,933 | |
2018 | 56,323 | |
2017 | 7,180 | |
Prior | 41,942 | |
Net investment in finance leases, net | 1,071,262 | |
Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Three Months Ended March 31, 2021 | 6,153 | |
2020 | 112,066 | |
2019 | 245,691 | |
Container leaseback financing receivable, net | 363,910 | |
Tier 1 | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Three Months Ended March 31, 2021 | 103,784 | |
2020 | 635,976 | |
2019 | 109,735 | |
2018 | 35,058 | |
2017 | 7,138 | |
Prior | 33,973 | |
Net investment in finance leases, net | 925,664 | |
Tier 1 | Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
2020 | 112,066 | |
2019 | 210,460 | |
Container leaseback financing receivable, net | 322,526 | |
Tier 2 | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Three Months Ended March 31, 2021 | 25,706 | |
2020 | 40,219 | |
2019 | 36,430 | |
2018 | 20,558 | |
2017 | 42 | |
Prior | 7,313 | |
Net investment in finance leases, net | 130,268 | |
Tier 2 | Container Leaseback Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Three Months Ended March 31, 2021 | 6,153 | |
2019 | 35,231 | |
Container leaseback financing receivable, net | 41,384 | |
Tier 3 | Finance Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Three Months Ended March 31, 2021 | 4,415 | |
2020 | 2,784 | |
2019 | 6,768 | |
2018 | 707 | |
Prior | 656 | |
Net investment in finance leases, net | $ 15,330 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rates | 1.70% | 14.00% |
Debt Obligation (Detail)
Debt Obligation (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | ||
Debt Instrument [Line Items] | ||||
Long term debt | $ 4,294,426 | $ 4,115,344 | ||
Amount due within one year | 295,518 | 408,365 | ||
Amounts due beyond one year | 3,998,908 | 3,706,979 | ||
TL Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 1,158,837 | $ 1,433,919 | ||
Weighted average variable interest rate | 1.61% | 1.65% | ||
Final Maturity | Sep. 30, 2023 | |||
TL 2019 Term Loan | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 145,512 | $ 148,131 | ||
Weighted average variable interest rate | 3.50% | 3.50% | ||
Final Maturity | Dec. 31, 2026 | |||
TL 2021 Term Loan | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 69,039 | |||
Weighted average variable interest rate | 2.65% | 0.00% | ||
Fixed interest rate | 2.65% | |||
Final Maturity | Feb. 29, 2028 | |||
TMCL II Secured Debt Facility | ||||
Debt Instrument [Line Items] | ||||
Long term debt | [1] | $ 669,221 | $ 646,551 | |
Weighted average variable interest rate | [1] | 1.91% | 1.91% | |
Final Maturity | [1] | Jul. 31, 2026 | ||
TMCL VI Term Loan | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 217,440 | $ 223,630 | ||
Weighted average variable interest rate | 4.29% | 4.29% | ||
Final Maturity | Feb. 28, 2038 | |||
TMCL VII 2019-1 Bonds | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 293,477 | $ 300,305 | ||
Fixed interest rate | 4.02% | 4.02% | ||
Final Maturity | Apr. 30, 2044 | |||
TMCL VII 2020-1 Bonds | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 418,242 | $ 429,600 | ||
Fixed interest rate | 3.07% | 3.07% | ||
Final Maturity | Aug. 31, 2045 | |||
TMCL VII 2020-2 Bonds | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 573,256 | $ 587,183 | ||
Fixed interest rate | 2.26% | 2.26% | ||
Final Maturity | Sep. 30, 2045 | |||
TMCL VII 2020-3 Bonds | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 209,232 | $ 214,168 | ||
Fixed interest rate | 2.15% | 2.15% | ||
Final Maturity | Sep. 30, 2045 | |||
TMCL VII 2021-1 Bonds | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 540,170 | |||
Fixed interest rate | 1.72% | 0.00% | ||
Final Maturity | Feb. 28, 2046 | |||
TAP Funding Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 131,857 | |||
Weighted average variable interest rate | 2.11% | |||
Final Maturity | Dec. 31, 2021 | |||
[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. |
Debt and Derivative Instrumen_3
Debt and Derivative Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Feb. 28, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Aggregate maximum commitment amount | $ 5,191,073,000 | |||
Write-off of unamortized debt issuance costs | 267,000 | $ 122,000 | ||
Addition to net fair value | 103,000 | $ 247,000 | ||
Designated | Interest rate swaps | ||||
Debt Instrument [Line Items] | ||||
Estimated amount to be reclassified from AOCI to interest expense | 4,438,000 | |||
TMCL VII 2021-1 Bonds | ||||
Debt Instrument [Line Items] | ||||
Aggregate maximum commitment amount | $ 546,332,000 | |||
Fixed interest rate | 1.72% | 0.00% | ||
TMCL VII 2021-1 Bonds | Class A Secured Debt Facility | ||||
Debt Instrument [Line Items] | ||||
Bonds issued | $ 523,500,000 | |||
TMCL VII 2021-1 Bonds | Class B Secured Debt Facility | ||||
Debt Instrument [Line Items] | ||||
Bonds issued | 26,500,000 | |||
TL 2021 Term Loan | ||||
Debt Instrument [Line Items] | ||||
Aggregate maximum commitment amount | $ 69,827,000 | $ 70,270,000 | ||
Fixed interest rate | 2.65% | |||
TAP Funding Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Write-off of unamortized debt issuance costs | $ 267,000 |
Summary of Outstanding Borrowin
Summary of Outstanding Borrowings and Borrowing Capacities (Detail) - USD ($) | Mar. 31, 2021 | Feb. 28, 2021 |
Debt Instrument [Line Items] | ||
Total Borrowing | $ 4,325,804,000 | |
Available Borrowing, as limited by the Borrowing Base | 166,388,000 | |
Current and Available Borrowing, as limited by the Borrowing Base | 4,492,192,000 | |
Total Commitment | 5,191,073,000 | |
TL Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total Borrowing | 1,163,000,000 | |
Available Borrowing, as limited by the Borrowing Base | 166,388,000 | |
Current and Available Borrowing, as limited by the Borrowing Base | 1,329,388,000 | |
Total Commitment | 1,500,000,000 | |
TL 2019 Term Loan | ||
Debt Instrument [Line Items] | ||
Total Borrowing | 146,788,000 | |
Current and Available Borrowing, as limited by the Borrowing Base | 146,788,000 | |
Total Commitment | 146,788,000 | |
TL 2021 Term Loan | ||
Debt Instrument [Line Items] | ||
Total Borrowing | 69,827,000 | |
Current and Available Borrowing, as limited by the Borrowing Base | 69,827,000 | |
Total Commitment | 69,827,000 | $ 70,270,000 |
TMCL II Secured Debt Facility | ||
Debt Instrument [Line Items] | ||
Total Borrowing | 671,731,000 | |
Current and Available Borrowing, as limited by the Borrowing Base | 671,731,000 | |
Total Commitment | 1,200,000,000 | |
TMCL VI Term Loan | ||
Debt Instrument [Line Items] | ||
Total Borrowing | 218,821,000 | |
Current and Available Borrowing, as limited by the Borrowing Base | 218,821,000 | |
Total Commitment | 218,821,000 | |
TMCL VII 2019-1 Bonds | ||
Debt Instrument [Line Items] | ||
Total Borrowing | 296,334,000 | |
Current and Available Borrowing, as limited by the Borrowing Base | 296,334,000 | |
Total Commitment | 296,334,000 | |
TMCL VII 2020-1 Bonds | ||
Debt Instrument [Line Items] | ||
Total Borrowing | 422,644,000 | |
Current and Available Borrowing, as limited by the Borrowing Base | 422,644,000 | |
Total Commitment | 422,644,000 | |
TMCL VII 2020-2 Bonds | ||
Debt Instrument [Line Items] | ||
Total Borrowing | 579,382,000 | |
Current and Available Borrowing, as limited by the Borrowing Base | 579,382,000 | |
Total Commitment | 579,382,000 | |
TMCL VII 2020-3 Bonds | ||
Debt Instrument [Line Items] | ||
Total Borrowing | 210,945,000 | |
Current and Available Borrowing, as limited by the Borrowing Base | 210,945,000 | |
Total Commitment | 210,945,000 | |
TMCL VII 2021-1 Bonds | ||
Debt Instrument [Line Items] | ||
Total Borrowing | 546,332,000 | |
Current and Available Borrowing, as limited by the Borrowing Base | 546,332,000 | |
Total Commitment | $ 546,332,000 |
Summary of Outstanding Borrow_2
Summary of Outstanding Borrowings and Borrowing Capacities (Parenthetical) (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
Prepaid debt issuance costs | $ 30,833 |
TMCL VII 2019-1 Bonds | |
Debt Instrument [Line Items] | |
Debt instrument exclude an unamortized discount | 77 |
TMCL VII 2020-1 Bonds | |
Debt Instrument [Line Items] | |
Debt instrument exclude an unamortized discount | 74 |
TMCL VII 2020-2 Bonds | |
Debt Instrument [Line Items] | |
Debt instrument exclude an unamortized discount | 149 |
TMCL VII 2020-3 Bonds | |
Debt Instrument [Line Items] | |
Debt instrument exclude an unamortized discount | 78 |
TMCL VII 2021-1 Bonds | |
Debt Instrument [Line Items] | |
Debt instrument exclude an unamortized discount | $ 167 |
Summary of Fair Value of Deriva
Summary of Fair Value of Derivative Instruments Reflected on Gross Basis on Condensed Consolidated Balance Sheets (Detail) - Interest Rate Swap - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liabilities | $ 20,648 | $ 29,235 |
Assets | ||
Derivatives Fair Value [Line Items] | ||
Assets | 2,188 | 47 |
Designated as Hedges | Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liabilities | 6,171 | 9,665 |
Designated as Hedges | Assets | ||
Derivatives Fair Value [Line Items] | ||
Assets | 2,188 | 47 |
Not designated as hedges | Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liabilities | $ 14,477 | $ 19,570 |
Summary of Derivative Instrumen
Summary of Derivative Instruments (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Derivative [Line Items] | |
Notional amounts | $ 1,230,750 |
Designated | Interest rate swaps | Amortizing | |
Derivative [Line Items] | |
Notional amounts | 708,250 |
Not designated as hedges | Interest rate swaps | Amortizing | |
Derivative [Line Items] | |
Notional amounts | 452,500 |
Not designated as hedges | Interest rate cap | Amortizing | |
Derivative [Line Items] | |
Notional amounts | $ 70,000 |
Summary of Derivative Instrum_2
Summary of Derivative Instruments (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2021 | |
Interest Rate Swap | Not designated as hedges | |
Derivative [Line Items] | |
Derivative Average Fixed Interest Rate Term | January 15, 2023 |
Interest Rate Swap | Not designated as hedges | Minimum | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 1.73% |
Interest Rate Swap | Not designated as hedges | Maximum | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 2.94% |
Interest Rate Swap | Designated as Hedges | |
Derivative [Line Items] | |
Derivative Average Fixed Interest Rate Term | April 30, 2027 |
Interest Rate Swap | Designated as Hedges | Minimum | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 0.17% |
Interest Rate Swap | Designated as Hedges | Maximum | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 1.58% |
Interest rate cap | Not designated as hedges | |
Derivative [Line Items] | |
Fixed interest rate on derivative contracts | 3.11% |
Derivative Average Fixed Interest Rate Term | March 31, 2022 |
Summary of Pre-tax Impact of De
Summary of Pre-tax Impact of Derivative Instruments on Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments Gain Loss [Line Items] | ||
Pre-tax impact of derivative instruments | $ (2,956) | $ (1,526) |
Realized (loss) gain on derivative instruments, net | Non-designated | ||
Derivative Instruments Gain Loss [Line Items] | ||
Pre-tax impact of derivative instruments | (2,956) | (1,526) |
Unrealized gain (loss) on derivative instruments, net | Non-designated | ||
Derivative Instruments Gain Loss [Line Items] | ||
Pre-tax impact of derivative instruments | 3,192 | (14,937) |
Other comprehensive income (loss) | Designated | ||
Derivative Instruments Gain Loss [Line Items] | ||
Pre-tax impact of derivative instruments | 4,442 | (8,858) |
Interest expense | Designated | ||
Derivative Instruments Gain Loss [Line Items] | ||
Pre-tax impact of derivative instruments | $ (1,194) | $ 62 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information Reconciled
Segment Information Reconciled to Income Before Income Taxes and Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Lease rental income | $ 169,244 | $ 145,478 | |
Trading container margin | 2,166 | 649 | |
Gain on sale of owned fleet containers, net | 12,358 | 5,794 | |
Depreciation expense | 65,806 | 66,834 | |
Container lessee default recovery, net | 3,968 | 12 | |
Interest expense | 29,106 | 36,112 | |
Write-off of unamortized debt issuance costs | 267 | 122 | |
Realized loss on derivative instruments, net | (2,956) | (1,526) | |
Unrealized gain (loss) on derivative instruments, net | 3,192 | (14,937) | |
Segment income (loss) before income tax and noncontrolling interests | 63,116 | (5,941) | |
Total assets | 6,223,712 | 5,053,806 | $ 5,741,376 |
Purchase of containers and fixed assets | 570,270 | 7,149 | |
Payments on container leaseback financing receivable | 6,425 | ||
Owned Fleet | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | 154,423 | 130,072 | |
Managed Fleet | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | 14,821 | 15,406 | |
Container Ownership | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | 154,290 | 129,850 | |
Gain on sale of owned fleet containers, net | 12,358 | 5,794 | |
Depreciation expense | 67,703 | 68,356 | |
Container lessee default recovery, net | 3,968 | 12 | |
Interest expense | 29,032 | 35,956 | |
Write-off of unamortized debt issuance costs | 267 | 122 | |
Realized loss on derivative instruments, net | (2,956) | (1,526) | |
Unrealized gain (loss) on derivative instruments, net | 3,192 | (14,937) | |
Segment income (loss) before income tax and noncontrolling interests | 52,285 | (12,051) | |
Total assets | 6,119,382 | 4,954,452 | |
Purchase of containers and fixed assets | 570,257 | 6,957 | |
Payments on container leaseback financing receivable | 6,425 | ||
Container Ownership | Owned Fleet | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | 154,290 | 129,850 | |
Container Management | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | 14,954 | 15,628 | |
Depreciation expense | 226 | 341 | |
Interest expense | 74 | 156 | |
Segment income (loss) before income tax and noncontrolling interests | 12,280 | 2,610 | |
Total assets | 203,430 | 154,857 | |
Purchase of containers and fixed assets | 13 | 192 | |
Container Management | Owned Fleet | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | 133 | 222 | |
Container Management | Managed Fleet | |||
Segment Reporting Information [Line Items] | |||
Lease rental income | 14,821 | 15,406 | |
Container Resale | |||
Segment Reporting Information [Line Items] | |||
Trading container margin | 2,166 | 649 | |
Segment income (loss) before income tax and noncontrolling interests | 4,185 | 2,758 | |
Total assets | 8,408 | 17,198 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Segment income (loss) before income tax and noncontrolling interests | (773) | (1,062) | |
Total assets | 11,690 | 8,293 | |
Management Fees - Non-Leasing | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,036 | 1,484 | |
Management Fees - Non-Leasing | External Customers | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,036 | 1,484 | |
Management Fees - Non-Leasing | Container Ownership | External Customers | |||
Segment Reporting Information [Line Items] | |||
Revenue | 98 | ||
Management Fees - Non-Leasing | Container Management | |||
Segment Reporting Information [Line Items] | |||
Revenue | 20,439 | 9,745 | |
Management Fees - Non-Leasing | Container Management | External Customers | |||
Segment Reporting Information [Line Items] | |||
Revenue | 67 | 555 | |
Management Fees - Non-Leasing | Container Resale | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,448 | 2,421 | |
Management Fees - Non-Leasing | Container Resale | External Customers | |||
Segment Reporting Information [Line Items] | |||
Revenue | 969 | 831 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | (2,123) | (1,863) | |
Segment income (loss) before income tax and noncontrolling interests | (4,861) | 1,804 | |
Total assets | (119,198) | (80,994) | |
Eliminations | Management Fees - Non-Leasing | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ (22,887) | $ (12,166) |
Segment Information Reconcile_2
Segment Information Reconciled to Income Before Income Taxes and Noncontrolling Interest (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Unrealized gain (loss) on derivative instruments, net | $ 3,192 | $ (14,937) |
Write-off of unamortized debt issuance costs | 267 | 122 |
Container Ownership | ||
Segment Reporting Information [Line Items] | ||
Unrealized gain (loss) on derivative instruments, net | 3,192 | (14,937) |
Write-off of unamortized debt issuance costs | $ 267 | $ 122 |
Segment Information Geographic
Segment Information Geographic Allocation of Lease Rental Income and Management Fees (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Lease rental income | $ 169,244 | $ 145,478 |
Percent of Total, Lease rental income | 100.00% | 100.00% |
Percent of Total, Management fees | 100.00% | 100.00% |
Asia | ||
Segment Reporting Information [Line Items] | ||
Lease rental income | $ 85,193 | $ 72,795 |
Percent of Total, Lease rental income | 50.30% | 50.00% |
Percent of Total, Management fees | 0.30% | 0.20% |
Bermuda | ||
Segment Reporting Information [Line Items] | ||
Percent of Total, Management fees | 56.90% | 66.20% |
Europe | ||
Segment Reporting Information [Line Items] | ||
Lease rental income | $ 76,275 | $ 64,727 |
Percent of Total, Lease rental income | 45.10% | 44.50% |
Percent of Total, Management fees | 42.20% | 13.40% |
North / South America | ||
Segment Reporting Information [Line Items] | ||
Lease rental income | $ 7,359 | $ 7,318 |
Percent of Total, Lease rental income | 4.30% | 5.00% |
Percent of Total, Management fees | 0.10% | 0.30% |
All other international | ||
Segment Reporting Information [Line Items] | ||
Lease rental income | $ 417 | $ 638 |
Percent of Total, Lease rental income | 0.30% | 0.50% |
Percent of Total, Management fees | 0.50% | 19.90% |
Total Management Fees | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 2,193 | $ 2,488 |
Total Management Fees | Non Leasing From External Customers | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,036 | 1,484 |
Total Management Fees | Non Leasing From External Customers | Asia | ||
Segment Reporting Information [Line Items] | ||
Revenue | 3 | 3 |
Total Management Fees | Non Leasing From External Customers | Bermuda | ||
Segment Reporting Information [Line Items] | ||
Revenue | 589 | 982 |
Total Management Fees | Non Leasing From External Customers | Europe | ||
Segment Reporting Information [Line Items] | ||
Revenue | 437 | 199 |
Total Management Fees | Non Leasing From External Customers | North / South America | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1 | 4 |
Total Management Fees | Non Leasing From External Customers | All other international | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 6 | $ 296 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Gain on sale of owned fleet containers, net | $ 12,358 | $ 5,794 |
Percent of Total, Trading container sales proceeds | 100.00% | 100.00% |
Percent of Total, Gain on sale of containers, net | 100.00% | 100.00% |
Trading Containers | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 7,611 | $ 9,585 |
North / South America | ||
Segment Reporting Information [Line Items] | ||
Gain on sale of owned fleet containers, net | $ 2,207 | $ 1,100 |
Percent of Total, Trading container sales proceeds | 54.80% | 28.40% |
Percent of Total, Gain on sale of containers, net | 17.90% | 19.00% |
North / South America | Trading Containers | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 4,170 | $ 2,721 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Gain on sale of owned fleet containers, net | $ 1,841 | $ 2,446 |
Percent of Total, Trading container sales proceeds | 23.30% | 60.20% |
Percent of Total, Gain on sale of containers, net | 14.90% | 42.20% |
Asia | Trading Containers | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,776 | $ 5,778 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Gain on sale of owned fleet containers, net | $ 8,310 | $ 1,044 |
Percent of Total, Trading container sales proceeds | 21.90% | 11.30% |
Percent of Total, Gain on sale of containers, net | 67.20% | 18.00% |
Europe | Trading Containers | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,665 | $ 1,081 |
All other international | ||
Segment Reporting Information [Line Items] | ||
Gain on sale of owned fleet containers, net | $ 1,204 | |
Percent of Total, Trading container sales proceeds | 0.10% | |
Percent of Total, Gain on sale of containers, net | 20.80% | |
All other international | Trading Containers | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Commitments And Contingencies Disclosure [Line Items] | ||
Restricted cash | $ 70,276,000 | $ 74,147,000 |
Containers orders placed | 741,674,000 | |
Future minimum lease payment obligations | 13,808,000 | |
Fleet Management Agreements | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Future minimum lease payment obligations | $ 0 |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | Aug. 31, 2019 | |
Equity Class Of Treasury Stock [Line Items] | ||||
Increase in common stock repurchase program, authorized amount | $ 25,000,000 | $ 50,000,000 | ||
Purchase of treasury shares (in shares) | 546,220 | 1,947,443 | ||
Common stock repurchased, average price per share | $ 19.73 | $ 7.91 | ||
Purchase of treasury shares | $ 10,778,000 | $ 15,477,000 | ||
Common stock repurchased program, amount remained available for repurchases | $ 12,454,000 | |||
Maximum | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Common stock repurchased program, authorized amount | $ 25,000,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ / shares in Units, $ in Thousands | Apr. 21, 2021USD ($) | Apr. 16, 2021USD ($) | Apr. 13, 2021USD ($)$ / sharesshares | May 01, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) |
Subsequent Event [Line Items] | ||||||
Increase in common stock repurchase program, authorized amount | $ 50,000 | $ 25,000 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Depositary shares issued | shares | 6,000,000 | |||||
Fixed-to-floating rate of cumulative redeemable perpetual preference shares | 7.00% | |||||
Depositary shares, interest in corresponding series of preferred stock | 0.001 | |||||
Depositary per share equivalent to liquidation preference per share | $ / shares | $ 25 | |||||
Proceeds from issuance of depositary shares | $ 144,875 | |||||
Bankruptcy settlement amount received in cash | $ 77 | |||||
Bankruptcy settlement amount received in stock value | $ 5,789 | |||||
Increase in common stock repurchase program, authorized amount | $ 50,000 | |||||
Subsequent Event [Member] | TMCL VII 2021-2 Bonds | Class A Secured Debt Facility | ||||||
Subsequent Event [Line Items] | ||||||
Bonds issued | 605,000 | |||||
Subsequent Event [Member] | TMCL VII 2021-2 Bonds | Class B Secured Debt Facility | ||||||
Subsequent Event [Line Items] | ||||||
Bonds issued | $ 46,000 | |||||
Subsequent Event [Member] | Series A Preferred Shares | ||||||
Subsequent Event [Line Items] | ||||||
Preferred stock, par value Per Share | $ / shares | $ 0.01 | |||||
Preferred stock, liquidation preference per share | $ / shares | $ 25,000 | |||||
Dividend rate | 7.00% |