Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

(10) 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 and nine months ended September 30, 2021 and 2020:

	Container		Container		Container
Three Months Ended September 30, 2021	Ownership		Management		Resale		Other			Eliminations			Totals
Lease rental income - owned fleet	$	182,450	$	205	$	-	$	-		$	-		$	182,655
Lease rental income - managed fleet		-		13,175		-		-			-			13,175
Lease rental income	$	182,450	$	13,380	$	-	$	-		$	-		$	195,830
Management fees - non-leasing from external   customers	$	-	$	93	$	505	$	-		$	-		$	598
Inter-segment management fees	$	-	$	23,381	$	2,390	$	-		$	(25,771	)	$	-
Trading container margin	$	-	$	-	$	2,639	$	-		$	-		$	2,639
Gain on sale of owned fleet containers, net	$	20,028	$	-	$	-	$	-		$	-		$	20,028
Depreciation expense	$	74,899	$	307	$	-	$	-		$	(2,367	)	$	72,839
Container lessee default expense, net	$	1,928	$	-	$	-	$	-		$	-		$	1,928
Interest expense	$	32,920	$	208	$	-	$	-		$	-		$	33,128
Debt termination expense	$	11,866	$	-	$	-	$	-		$	-		$	11,866
Realized loss on financial instruments, net	$	4	$	108	$	-	$	-		$	-		$	112
Unrealized gain on financial instruments, net	$	43	$	40	$	-	$	-		$	-		$	83
Segment income (loss) before income taxes	$	57,591	$	13,273	$	4,518	$	(1,904	)	$	(5,194	)	$	68,284
Total assets	$	7,141,719	$	191,363	$	22,314	$	17,427		$	(104,678	)	$	7,268,145
Purchase of containers and fixed assets	$	652,828	$	61	$	-	$	-		$	-		$	652,889

	Container		Container			Container
Nine Months Ended September 30, 2021	Ownership		Management			Resale		Other			Eliminations			Totals
Lease rental income - owned fleet	$	509,010	$	516		$	-	$	-		$	-		$	509,526
Lease rental income - managed fleet		-		42,982			-		-			-			42,982
Lease rental income	$	509,010	$	43,498		$	-	$	-		$	-		$	552,508
Management fees - non-leasing from external   customers	$	-	$	299		$	2,447	$	-		$	-		$	2,746
Inter-segment management fees	$	-	$	63,899		$	7,602	$	-		$	(71,501	)	$	-
Trading container margin	$	-	$	-		$	9,036	$	-		$	-		$	9,036
Gain on sale of owned fleet containers, net	$	51,222	$	-		$	-	$	-		$	-		$	51,222
Depreciation expense	$	214,607	$	781		$	-	$	-		$	(6,728	)	$	208,660
Container lessee default recovery, net	$	1,185	$	-		$	-	$	-		$	-		$	1,185
Interest expense	$	91,980	$	401		$	-	$	-		$	-		$	92,381
Debt termination expense	$	15,078	$	-		$	-	$	-		$	-		$	15,078
Realized loss on financial instruments, net	$	5,408	$	108		$	-	$	-		$	-		$	5,516
Unrealized gain (loss) on financial instruments, net	$	5,220	$	(539	)	$	-	$	-		$	-		$	4,681
Segment income (loss) before income taxes	$	172,234	$	37,473		$	15,433	$	(3,822	)	$	(13,994	)	$	207,324
Total assets	$	7,141,719	$	191,363		$	22,314	$	17,427		$	(104,678	)	$	7,268,145
Purchase of containers and fixed assets	$	1,727,123	$	84		$	-	$	-		$	-		$	1,727,207
Payments on container leaseback financing    receivable	$	18,705	$	-		$	-	$	-		$	-		$	18,705

(1) Container Ownership segment income (loss) before income taxes includes unrealized gain on financial instruments, net of $43 and $5,220 for the three and nine months ended September 30, 2021, respectively, and debt termination expense of $11,866 and $15,078 for the three and nine months ended September 30, 2021, respectively.

	Container		Container		Container
Three Months Ended September 30, 2020	Ownership		Management		Resale		Other			Eliminations			Totals
Lease rental income - owned fleet	$	133,413	$	174	$	-	$	-		$	-		$	133,587
Lease rental income - managed fleet		-		15,543		-		-			-			15,543
Lease rental income	$	133,413	$	15,717	$	-	$	-		$	-		$	149,130
Management fees - non-leasing from external    customers	$	98	$	72	$	1,526	$	-		$	-		$	1,696
Inter-segment management fees	$	-	$	15,204	$	4,066	$	-		$	(19,270	)	$	-
Trading container margin	$	-	$	-	$	934	$	-		$	-		$	934
Gain on sale of owned fleet containers, net	$	7,976	$	-	$	-	$	-		$	-		$	7,976
Depreciation expense	$	67,072	$	219	$	-	$	-		$	(1,917	)	$	65,374
Container lessee default expense, net	$	76	$	-	$	-	$	-		$	-		$	76
Interest expense	$	29,079	$	44	$	-	$	-		$	-		$	29,123
Debt termination expense	$	8,628	$	-	$	-	$	-		$	-		$	8,628
Realized loss on derivative instruments, net	$	4,107	$	-	$	-	$	-		$	-		$	4,107
Unrealized gain on derivative instruments, net	$	4,161	$	-	$	-	$	-		$	-		$	4,161
Segment income (loss) before income tax and    noncontrolling interests	$	8,550	$	7,290	$	5,389	$	(1,016	)	$	(2,919	)	$	17,294
Total assets	$	5,307,260	$	163,306	$	18,294	$	26,154		$	(101,663	)	$	5,413,351
Purchase of containers and fixed assets	$	406,853	$	48	$	-	$	-		$	-		$	406,901
Payments on container leaseback financing    receivable	$	14,170	$	-	$	-	$	-		$	-		$	14,170

	Container		Container		Container
Nine Months Ended September 30, 2020	Ownership		Management		Resale		Other			Eliminations			Totals
Lease rental income - owned fleet	$	391,561	$	746	$	-	$	-		$	-		$	392,307
Lease rental income - managed fleet		-		47,075		-		-			-			47,075
Lease rental income	$	391,561	$	47,821	$	-	$	-		$	-		$	439,382
Management fees - non-leasing from external    customers	$	294	$	62	$	3,368	$	-		$	-		$	3,724
Inter-segment management fees	$	-	$	37,101	$	9,174	$	-		$	(46,275	)	$	-
Trading container margin	$	-	$	-	$	2,154	$	-		$	-		$	2,154
Gain on sale of owned fleet containers, net	$	19,410	$	-	$	-	$	-		$	-		$	19,410
Depreciation expense	$	200,981	$	729	$	-	$	-		$	(5,654	)	$	196,056
Container lessee default recovery, net	$	1,607	$	-	$	-	$	-		$	-		$	1,607
Interest expense	$	94,933	$	324	$	-	$	-		$	-		$	95,257
Debt termination expense	$	8,750	$	-	$	-	$	-		$	-		$	8,750
Realized loss on derivative instruments, net	$	8,900	$	-	$	-	$	-		$	-		$	8,900
Unrealized loss on derivative instruments, net	$	9,434	$	-	$	-	$	-		$	-		$	9,434
Segment income (loss) before income tax and    noncontrolling interests	$	7,475	$	14,220	$	11,537	$	(3,005	)	$	(1,503	)	$	28,724
Total assets	$	5,307,260	$	163,306	$	18,294	$	26,154		$	(101,663	)	$	5,413,351
Purchase of containers and fixed assets	$	586,970	$	134	$	-	$	-		$	-		$	587,104
Payments on container leaseback financing    receivable	$	24,089	$	-	$	-	$	-		$	-		$	24,089

(1) Container Ownership segment income (loss) before income taxes and noncontrolling interests includes unrealized gain (loss) on financial instruments, net of $4,161 and $(9,434) for the three and nine months ended September 30, 2020, respectively, and debt termination expense of $8,628 and $8,750 for the three and nine months ended September 30, 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 and nine months ended September 30, 2021 and 2020 based on customers’ and Container Investors’ primary domicile, respectively:

	Three Months Ended September 30,										Nine Months Ended September 30,
	2021		Percent of Total			2020		Percent of Total			2021		Percent of Total			2020		Percent of Total
Lease rental income:
Asia	$	99,216		50.7	%	$	75,045		50.3	%	$	281,791		51.0	%	$	220,439		50.1	%
Europe		88,001		44.9	%		66,220		44.4	%		245,967		44.5	%		194,479		44.3	%
North / South America		8,237		4.2	%		7,359		4.9	%		23,612		4.3	%		22,652		5.2	%
All other international		376		0.2	%		506		0.4	%		1,138		0.2	%		1,812		0.4	%
	$	195,830		100.0	%	$	149,130		100.0	%	$	552,508		100.0	%	$	439,382		100.0	%
Management fees, non-leasing:
Europe	$	300		50.2	%	$	789		46.5	%	$	1,183		43.1	%	$	1,692		45.4	%
Bermuda		245		41.0	%		893		52.7	%		1,451		52.9	%		1,974		53.0	%
Asia		21		3.5	%		4		0.2	%		45		1.6	%		7		0.2	%
North / South America		8		1.3	%		2		0.1	%		19		0.7	%		0		—
All other international		24		4.0	%		8		0.5	%		48		1.7	%		51		1.4	%
	$	598		100.0	%	$	1,696		100.0	%	$	2,746		100.0	%	$	3,724		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 and nine months ended September 30, 2021 and 2020 based on the location of sale:

	Three Months Ended September 30,										Nine Months Ended September 30,
	2021		Percent of Total			2020		Percent of Total			2021		Percent of Total			2020			Percent of Total
Trading container sales proceeds:
Asia	$	5,343		84.7	%	$	2,975		38.9	%	$	10,293		45.5	%	$	12,948			52.5	%
Europe		656		10.4	%		796		10.4	%		3,360		14.8	%		2,469			10.0	%
North / South America		308		4.9	%		3,884		50.7	%		8,994		39.7	%		9,241			37.5	%
All other international		—		—			—		—			1		0.0	%		9			0.0	%
	$	6,307		100.0	%	$	7,655		100.0	%	$	22,648		100.0	%	$	24,667			100.0	%
Gain on sale of owned fleet containers, net:
Asia	$	14,941		74.6	%	$	5,032		63.1	%	$	36,084		70.5	%	$	11,322			58.3	%
North / South America		2,741		13.7	%		1,410		17.7	%		7,241		14.1	%		4,440			22.9	%
Europe		2,346		11.7	%		1,493		18.7	%		7,897		15.4	%		3,714			19.1	%
All other international		—		—			41		0.5	%		—		—			(66	)		(0.3	)%
	$	20,028		100.0	%	$	7,976		100.0	%	$	51,222		100.0	%	$	19,410			100.0	%