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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities    
Net income $ 59,189 $ 35,497
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 89,635 83,088
Amortization of debt issuance costs 3,173 2,400
Amortization of intangible assets 1,538 1,536
Stock-based compensation expense 2,101 1,539
Reduction in contingent consideration   (2,211)
Unrealized loss on foreign exchange 317 42
Gain on sale of used rental equipment (7,539) (2,539)
Deferred income taxes 2,424 393
Bad debt (recovery) expense (14) 750
Changes in other operating assets and liabilities:    
Accounts receivable (7,305) (10,715)
Prepaid expenses and other assets (2,130) (72)
Accounts payable, accrued expenses and other current liabilities (901) (5,887)
Due to container investors (852) (697)
Unearned revenue (49) (540)
Net cash provided by operating activities 139,587 102,584
Cash flows from investing activities    
Purchase of rental equipment (529,230) [1] (277,769)
Proceeds from sale of used rental equipment 44,373 48,863
Purchase of furniture, fixtures and equipment (394) (91)
Receipt of principal payments from direct finance leases 26,982 14,536
Net cash used in investing activities (458,269) (214,461)
Cash flows from financing activities    
Proceeds from debt 1,302,912 556,544
Principal payments on debt (1,025,954) (448,436)
Debt issuance costs (9,882) (3,129)
Proceeds from issuance of common and preferred stock 103,681  
Repurchase of common stock (27,946)  
Dividends paid to preferred stockholders (1,376)  
Exercise of stock options 24 1,362
Net cash provided by financing activities 341,459 106,341
Effect on cash of foreign currency translation (23) 380
Net increase (decrease) in cash and restricted cash 22,754 (5,156)
Cash and restricted cash at beginning of the period [2] 47,209 52,326
Cash and restricted cash at end of the period [3] 69,963 47,170
Cash paid during the period for:    
Income taxes 378 174
Interest 51,168 35,014
Supplemental disclosure of non-cash investing and financing activity    
Transfer of rental equipment to direct finance lease 271,938 144,907
Transfer of direct finance lease to rental equipment   291
Rental equipment payable $ 257,947 $ 190,180
[1] Represents cash disbursements for purchasing of rental equipment as reflected in the consolidated statements of cash flows for the periods indicated.
[2] Includes cash of $14,735 and $15,685, cash held by variable interest entities of $20,685 and $30,449, and restricted cash of $11,789 and $6,192 at December 31, 2017 and 2016, respectively.
[3] Includes cash of $14,550 and $12,508, cash held by variable interest entities of $23,779 and $22,445, and restricted cash of $31,634 and $12,217 at September 30, 2018 and 2017, respectively.