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Segment and Geographic Information | 3 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
Segment and Geographic Information | Segment and Geographic Information Segment Information The Company operates its business in one industry, intermodal transportation equipment, and has two operating segments which also represent its reporting segments: •Equipment leasing - the Company owns, leases and ultimately disposes of containers and chassis from its lease fleet. •Equipment trading - the Company purchases containers from shipping line customers, and other sellers of containers, and resells these containers to container retailers and users of containers for storage or one-way shipment. Included in the equipment trading segment revenues are leasing revenues from equipment purchased for resale that is currently on lease until the containers are dropped off. These operating segments were determined based on the chief operating decision maker's review and resource allocation of the products and services offered. The following tables summarizes our segment information and the consolidated totals reported (in thousands):
| Three Months Ended September 30,
| 2021 |  | 2020
| Equipment Leasing |  | Equipment Trading |  | Totals |  | Equipment Leasing |  | Equipment Trading |  | Totals
Total leasing revenues | $ | 396,100 |  |  | $ | 4,091 |  |  | $ | 400,191 |  |  | $ | 325,279 |  |  | $ | 2,478 |  |  | $ | 327,757 |
Trading margin | — |  |  | 9,163 |  |  | 9,163 |  |  | — |  |  | 3,869 |  |  | 3,869 |
Net gain on sale of leasing equipment | 25,606 |  |  | — |  |  | 25,606 |  |  | 10,737 |  |  | — |  |  | 10,737 |
Depreciation and amortization expense | 163,308 |  |  | 185 |  |  | 163,493 |  |  | 136,058 |  |  | 190 |  |  | 136,248 |
Interest and debt expense | 54,238 |  |  | 490 |  |  | 54,728 |  |  | 62,138 |  |  | 638 |  |  | 62,776 |
Segment income (loss) before income taxes(1) | 178,660 |  |  | 11,544 |  |  | 190,204 |  |  | 91,986 |  |  | 4,642 |  |  | 96,628 |
Purchases of leasing equipment and investments in finance leases(2) | $ | 1,074,100 |  |  | $ | — |  |  | $ | 1,074,100 |  |  | $ | 134,637 |  |  | $ | — |  |  | $ | 134,637 |
| Nine Months Ended September 30,
| 2021 |  | 2020
| Equipment Leasing |  | Equipment Trading |  | Totals |  | Equipment Leasing |  | Equipment Trading |  | Totals
Total leasing revenues | $ | 1,106,894 |  |  | $ | 9,824 |  |  | $ | 1,116,718 |  |  | $ | 965,936 |  |  | $ | 4,686 |  |  | $ | 970,622 |
Trading margin | — |  |  | 28,030 |  |  | 28,030 |  |  | — |  |  | 7,822 |  |  | 7,822 |
Net gain on sale of leasing equipment | 78,964 |  |  | — |  |  | 78,964 |  |  | 19,351 |  |  | — |  |  | 19,351 |
Depreciation and amortization expense | 460,326 |  |  | 530 |  |  | 460,856 |  |  | 401,692 |  |  | 543 |  |  | 402,235 |
Interest and debt expense | 168,053 |  |  | 1,302 |  |  | 169,355 |  |  | 197,320 |  |  | 1,332 |  |  | 198,652 |
Segment income (loss) before income taxes(1) | 478,173 |  |  | 32,418 |  |  | 510,591 |  |  | 248,346 |  |  | 8,468 |  |  | 256,814 |
Purchases of leasing equipment and investments in finance leases(2) | $ | 2,791,943 |  |  | $ | — |  |  | $ | 2,791,943 |  |  | $ | 354,425 |  |  | $ | — |  |  | $ | 354,425 |
(1) Segment income before income taxes excludes unrealized gains or losses on derivative instruments and debt termination expense. The Company recorded $42.7 million and $132.5 million of debt termination expense for the three and nine months ended September 30, 2021, respectively, and $24.3 million and $24.4 million of debt termination expense for the three and nine months ended September 30, 2020, respectively. (2) Represents cash disbursements for purchases of leasing equipment and investments in finance lease as reflected in the consolidated statements of cash flows for the periods indicated, but excludes cash flows associated with the purchase of equipment held for resale.
| September 30, 2021 |  | December 31, 2020
| Equipment Leasing |  | Equipment Trading |  | Totals |  | Equipment Leasing |  | Equipment Trading |  | Totals
Equipment held for sale | $ | 10,202 |  |  | $ | 40,245 |  |  | $ | 50,447 |  |  | $ | 43,275 |  |  | $ | 24,036 |  |  | $ | 67,311 |
Goodwill | 220,864 |  |  | 15,801 |  |  | 236,665 |  |  | 220,864 |  |  | 15,801 |  |  | 236,665 |
Total assets | $ | 12,092,222 |  |  | $ | 109,378 |  |  | $ | 12,201,600 |  |  | $ | 9,612,251 |  |  | $ | 100,282 |  |  | $ | 9,712,533 |
There are no intercompany revenues or expenses between segments. Certain administrative expenses have been allocated between segments based on an estimate of services provided to each segment. A portion of the Company's equipment purchased for resale in the equipment trading segment may be leased for a period of time and is reflected as leasing equipment as opposed to equipment held for sale and the cash flows associated with these transactions are reflected as purchases of leasing equipment and proceeds from the sale of equipment in investing activities in the Company's consolidated statements of cash flows. Geographic Segment Information The Company generates the majority of its leasing revenues from international containers which are deployed by its customers in a wide variety of global trade routes. The majority of the Company's leasing related revenue is denominated in U.S. dollars. The following table summarizes the geographic allocation of equipment leasing revenues for the three and nine months ended September 30, 2021 and 2020 based on customers' primary domicile (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Total equipment leasing revenues: |  |  |  |  |  |  |
Asia | $ | 146,661 |  |  | $ | 115,084 |  |  | $ | 406,407 |  |  | $ | 353,464 |
Europe | 208,231 |  |  | 175,629 |  |  | 588,674 |  |  | 503,106 |
Americas | 32,017 |  |  | 25,055 |  |  | 84,066 |  |  | 81,668 |
Bermuda | 625 |  |  | 450 |  |  | 1,798 |  |  | 1,331 |
Other International | 12,657 |  |  | 11,539 |  |  | 35,773 |  |  | 31,053 |
Total | $ | 400,191 |  |  | $ | 327,757 |  |  | $ | 1,116,718 |  |  | $ | 970,622 |
Since the majority of the Company's containers are used internationally, where no one container is domiciled in one particular place for a prolonged period of time, all of the Company's long-lived assets are considered to be international. The following table summarizes the geographic allocation of equipment trading revenues for the three and nine months ended September 30, 2021 and 2020 based on the location of the sale (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Total equipment trading revenues: |  |  |  |  |  |  |
Asia | $ | 22,918 |  |  | $ | 7,546 |  |  | $ | 44,687 |  |  | $ | 12,232 |
Europe | 6,247 |  |  | 6,329 |  |  | 18,409 |  |  | 16,542 |
Americas | 13,588 |  |  | 8,316 |  |  | 32,963 |  |  | 21,755 |
Bermuda | — |  |  | — |  |  | — |  |  | — |
Other International | 1,665 |  |  | 3,903 |  |  | 7,487 |  |  | 7,848 |
Total | $ | 44,418 |  |  | $ | 26,094 |  |  | $ | 103,546 |  |  | $ | 58,377 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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