Rental Equipment

3 Months Ended

Mar. 31, 2020

(3) Rental Equipment

The following table provides a summary of the Company’s rental equipment (in thousands):


	March 31,		December 31,
	2020		2019
Dry containers	$	1,881,637	$	1,902,471
Refrigerated containers		277,013		282,155
Other specialized equipment		221,935		224,924
Railcars		294,875		314,279
		2,675,460		2,723,829
Accumulated depreciation		(640,118)		(620,990)
Rental equipment, net of accumulated depreciation	$	2,035,342	$	2,102,839

Impairment of railcar assets

During the three months ended March 31, 2020, an impairment charge of $19.2 million was recognized to reduce the book value of the railcar portfolio, on an individual basis, to the lower of its net book value had the assets not been classified as held for sale, or its estimated fair value at the date when the decision was made not to sell the assets of the railcar business. To assist in the Company’s assessment of fair value, a third-party appraisal was carried out on the railcar fleet using a combination of cost and market approaches. The cost approach utilizes the current replacement cost for a particular car type and calculates an estimated depreciation based on a railcar having a 40-year life and residual value being 10% of the estimated purchase price. The market approach estimates value based on recent market transactions involving similar railcars. The railcars were classified within Level 3 of the fair value hierarchy.