XML 18 R13.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Debt | 12 Months Ended
--- | ---
Dec. 31, 2019
Debt Disclosure [Abstract] |
Debt Disclosure [Text Block] | Debt The table below summarizes the Company's key terms and carrying value of debt (in thousands):
| Contractual Weighted Avg Interest Rate(1) |  | Maturity Range(1) |  | December 31, 2019 |  | December 31, 2018
|  | From |  | To |  |
Institutional notes | 4.65% |  | Apr 2020 |  | Jun 2029 |  | $ | 1,957,557 |  |  | $ | 2,198,200 |
Asset-backed securitization term notes | 3.69% |  | May 2022 |  | Jun 2028 |  | 2,719,206 |  |  | 3,063,821 |
Term loan facilities | 3.32% |  | Apr 2022 |  | Nov 2023 |  | 1,200,375 |  |  | 1,543,375 |
Asset-backed securitization warehouse | 3.51% |  | Dec 2025 |  | Dec 2025 |  | 370,000 |  |  | 340,000 |
Revolving credit facilities | 3.45% |  | Sep 2023 |  | Jul 2024 |  | 410,000 |  |  | 375,000 |
Finance lease obligations | 4.92% |  | Feb 2024 |  | Feb 2024 |  | 27,024 |  |  | 75,526 |
Total debt outstanding |  |  |  |  |  |  | 6,684,162 |  |  | 7,595,922 |
Unamortized debt costs |  |  |  |  |  |  | (39,781 | ) |  | (44,889 | )
Unamortized debt premiums & discounts |  |  |  |  |  |  | (4,065 | ) |  | (5,293 | )
Unamortized fair value debt adjustment |  |  |  |  |  |  | (8,791 | ) |  | (16,308 | )
Debt, net of unamortized costs |  |  |  |  |  |  | $ | 6,631,525 |  |  | $ | 7,529,432 |
(1) | Data as of December 31, 2019.
The fair value of total debt outstanding was $6,747.8 million and $7,559.1 million as of December 31, 2019 and December 31, 2018, respectively, and was measured using Level 2 inputs. The Company is subject to certain financial covenants under its debt agreements. The agreements remain the obligations of the respective subsidiaries, and all related debt covenants are calculated at the subsidiary level. As of December 31, 2019 and December 31, 2018, the Company was in compliance with all financial covenants in accordance with the terms of its debt agreements. The Company hedges the risks associated with fluctuations in interest rates on a portion of its floating-rate debt by entering into interest rate swap agreements that convert a portion of its floating-rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense. The following table summarizes the Company's outstanding fixed-rate and floating-rate debt as of December 31, 2019 (in thousands):
| Balance Outstanding |  | Contractual Weighted Avg Interest Rate |  | Maturity Range |  | Weighted Avg Remaining Term
|  |  | From |  | To |
Excluding impact of derivative instruments: |  |  |  |  |  |  |  |  |
Fixed-rate debt | $3,984,316 |  | 4.23% |  | Apr 2020 |  | Jun 2029 |  | 3.4 years
Floating-rate debt | $2,699,846 |  | 3.38% |  | Apr 2022 |  | Dec 2025 |  | 3.6 years
Including impact of derivative instruments: |  |  |  |  |  |  |  |  |
Fixed-rate debt | $3,984,316 |  | 4.23% |  |  |  |  |  |
Hedged floating-rate debt | 1,799,204 |  | 3.60% |  |  |  |  |  |
Total fixed and hedged debt | 5,783,520 |  | 4.04% |  |  |  |  |  |
Unhedged floating-rate debt | 900,642 |  | 3.38% |  |  |  |  |  |
Total | $6,684,162 |  | 3.95% |  |  |  |  |  |
On February 8, 2019, the Company increased its borrowing capacity on an Asset-Backed Securitization Warehouse facility by $300.0 million to $800.0 million. On May 16, 2019, the Company amended an existing $1,125.0 million revolving credit facility which reduced interest rates to LIBOR plus 1.50% and extended the maturity date to May 16, 2024. On May 31, 2019, the Company extinguished a term loan and paid the outstanding balance of $210.3 million. On July 8, 2019, the Company entered into a new $325.0 million revolving credit facility with an interest rate of one-month LIBOR plus 1.75%. The facility is available on a revolving basis through July 8, 2021, after which it will convert to a term loan with a maturity date of July 8, 2024. On August 2, 2019, the Company extinguished an asset-backed warehouse facility which had no outstanding balance. The Company also amended a term loan agreement which increased its borrowings by $39.2 million to $500.0 million, decreased its interest rate to one-month LIBOR plus 1.65%, and extended the maturity date to August 20, 2024. During 2019, the Company paid $41.2 million and exercised the early purchase option on several finance lease obligations. The Company recorded $2.5 million, $6.1 million, $7.0 million of debt termination expense for the years ended December 31, 2019, 2018 and 2017, respectively. Institutional Notes In accordance with the institutional note agreements, interest payments on the Company's institutional notes are due semi-annually. Institutional note maturities typically range from 7 - 12 years, with level principal payments due annually following an interest-only period. The Company's institutional notes are pre-payable (in whole or in part) at the Company's option at any time, subject to certain provisions in the note agreements, including the payment of a make-whole premium in respect to such prepayment. These facilities provide for an advance rate against the net book values of designated eligible equipment. Asset-Backed Securitization Term Notes Under the Company's ABS facilities, indirect wholly-owned subsidiaries of the Company issue asset-backed notes. These subsidiaries are intended to be bankruptcy remote so that such assets are not available to creditors of the Company or its affiliates until and unless the related secured borrowings have been fully discharged. These transactions do not meet accounting requirements for sales treatment and are recorded as secured borrowings. The Company's borrowings under the ABS facilities amortize in monthly installments, typically in level payments over five or more years. These facilities provide for an advance rate against the net book values of designated eligible equipment. The net book values for purposes of calculating eligible equipment is determined according to the related debt agreement and may be different than those calculated per U.S. GAAP. The Company is required to maintain restricted cash balances on deposit in designated bank accounts equal to three to nine months of interest expense depending on the terms of each facility. Term Loan Facilities The term loan facilities amortize in monthly or quarterly installments. These facilities provide for an advance rate against the net book values of designated eligible equipment. Asset-Backed Securitization Warehouse Facility Under the Company's asset-backed warehouse facility, indirect wholly-owned subsidiaries of the Company issue asset-backed notes. These subsidiaries are intended to be bankruptcy remote so that such assets are not available to creditors of the Company or its affiliates until and unless the related secured borrowings have been fully discharged. These transactions do not meet accounting requirements for sales treatment and are recorded as secured borrowings. The Company's asset-backed warehouse facility has a borrowing capacity of $800.0 million that is available on a revolving basis until December 13, 2021, paying interest at LIBOR plus 1.75%, after which any borrowings will convert to term notes with a maturity date of December 15, 2025, paying interest at LIBOR plus 2.85%. During the revolving period, the borrowing capacity under this facility is determined by applying an advance rate against the net book values of designated eligible equipment. The net book values for purposes of calculating eligible equipment are determined according to the related debt agreement and may be different than those calculated per U.S. GAAP. The Company is required to maintain restricted cash balances on deposit in designated bank accounts equal to three months of interest expense. Revolving Credit Facilities The revolving credit facilities have a maximum borrowing capacity of $1,560.0 million. These facilities provide for an advance rate against the net book values of designated eligible equipment. As of December 31, 2019, the actual combined availability under the asset-backed warehouse facility and the revolving credit facility was approximately $845.9 million. At December 31, 2019, debt maturities excluding finance lease obligations were as follows (in thousands):
Years ending December 31, |
2020 | $ | 822,537 |
2021 | 827,125 |
2022 | 1,048,929 |
2023 | 1,638,092 |
2024 | 1,052,157 |
2025 and thereafter | 1,268,298 |
Total | $ | 6,657,138 |
Finance Lease Obligations The Company has entered into a series of finance lease transactions with various financial institutions to finance chassis and containers. Each lease is accounted for as a finance lease, with interest expense recognized on a level yield basis over the period preceding early purchase options, if any, which is generally three to ten years from the transaction date. At December 31, 2019, future lease payments under these finance leases were as follows (in thousands):
Years ending December 31, |
2020 | $ | 4,370 |
2021 | 4,370 |
2022 | 4,370 |
2023 | 4,370 |
2024 | 13,239 |
2025 and thereafter | — |
Total future payments | 30,719 |
Less: amount representing interest | (3,695 | )
Finance lease obligations | $ | 27,024 |

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration