Segment Information

12 Months Ended

Dec. 31, 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 2021, 2020 and 2019:

	Container		Container			Container
2021	Ownership		Management			Resale		Other			Eliminations			Totals
Lease rental income - owned fleet	$	694,045	$	648		$	—	$	—		$	—		$	694,693
Lease rental income - managed fleet		—		56,037			—		—			—			56,037
Lease rental income	$	694,045	$	56,685		$	—	$	—		$	—		$	750,730
Management fees - non-leasing from external    customers	$	—	$	373		$	2,987	$	—		$	—		$	3,360
Inter-segment management fees	$	—	$	83,074		$	9,954	$	—		$	(93,028	)	$	—
Trading container margin	$	—	$	—		$	10,760	$	—		$	—		$	10,760
Gain on sale of owned fleet containers, net	$	67,229	$	—		$	—	$	—		$	—		$	67,229
Depreciation expense	$	289,610	$	1,110		$	—	$	—		$	(9,145	)	$	281,575
Container lessee default recovery, net	$	1,088	$	—		$	—	$	—		$	—		$	1,088
Interest expense	$	126,628	$	641		$	—	$	—		$	—		$	127,269
Debt termination expense	$	15,209	$	—		$	—	$	—		$	—		$	15,209
Realized loss on financial instruments, net	$	5,408	$	226		$	—	$	—		$	—		$	5,634
Unrealized gain (loss) on financial instruments, net	$	5,220	$	(811	)	$	—	$	—		$	—		$	4,409
Segment income (loss) before income tax (1)	$	239,857	$	46,706		$	19,166	$	(4,845	)	$	(14,823	)	$	286,061
Income tax expense	$	1,404	$	369		$	—	$	—		$	—		$	1,773
Total assets	$	7,269,451	$	230,810		$	15,819	$	12,644		$	(161,280	)	$	7,367,444
Purchase of containers and fixed assets	$	1,991,898	$	1,242		$	—	$	—		$	—		$	1,993,140
Payments on container leaseback financing    receivable	$	18,705	$	—		$	—	$	—		$	—		$	18,705

	Container		Container			Container
2020	Ownership		Management			Resale		Other			Eliminations			Totals
Lease rental income - owned fleet	$	537,534	$	891		$	—	$	—		$	—		$	538,425
Lease rental income - managed fleet		—		62,448			—		—			—			62,448
Lease rental income	$	537,534	$	63,339		$	—	$	—		$	—		$	600,873
Management fees - non-leasing from external    customers	$	392	$	129		$	4,750	$	—		$	—		$	5,271
Inter-segment management fees	$	—	$	54,899		$	12,575	$	—		$	(67,474	)	$	—
Trading container margin	$	—	$	—		$	3,532	$	—		$	—		$	3,532
Gain on sale of owned fleet containers, net	$	27,230	$	—		$	—	$	—		$	—		$	27,230
Depreciation expense	$	268,401	$	939		$	—	$	—		$	(7,675	)	$	261,665
Container lessee default recovery, net	$	1,675	$	—		$	—	$	—		$	—		$	1,675
Interest expense	$	122,863	$	367		$	—	$	—		$	—		$	123,230
Debt termination expense	$	8,750	$	—		$	—	$	—		$	—		$	8,750
Realized loss on financial instruments, net	$	12,295	$	—		$	—	$	—		$	—		$	12,295
Unrealized loss on financial instruments, net	$	6,044	$	—		$	—	$	—		$	—		$	6,044
Segment income (loss) before income tax and    noncontrolling interests (1)	$	41,831	$	23,641		$	16,433	$	(3,254	)	$	(5,352	)	$	73,299
Income tax benefit (expense)	$	1,088	$	(714	)	$	—	$	—		$	—		$	374
Total assets	$	5,641,866	$	180,933		$	12,050	$	13,691		$	(107,164	)	$	5,741,376
Purchase of containers and fixed assets	$	968,204	$	194		$	—	$	—		$	—		$	968,398
Payments on container leaseback financing    receivable	$	116,263	$	—		$	—	$	—		$	—		$	116,263

	Container		Container		Container
2019	Ownership		Management		Resale		Other			Eliminations			Totals
Lease rental income - owned fleet	$	516,307	$	1,552	$	—	$	—		$	—		$	517,859
Lease rental income - managed fleet		—		101,901		—		—			—			101,901
Lease rental income	$	516,307	$	103,453	$	—	$	—		$	—		$	619,760
Management fees - non-leasing from external    customers	$	219	$	1,646	$	5,725	$	—		$	—		$	7,590
Inter-segment management fees	$	—	$	48,215	$	12,323	$	—		$	(60,538	)	$	—
Trading container margin	$	—	$	—	$	7,398	$	—		$	—		$	7,398
Gain on sale of owned fleet containers, net	$	21,397	$	—	$	—	$	—		$	—		$	21,397
Depreciation expense	$	266,832	$	916	$	—	$	—		$	(7,376	)	$	260,372
Container lessee default expense, net	$	7,867	$	—	$	—	$	—		$	—		$	7,867
Interest expense	$	152,914	$	271	$	—	$	—		$	—		$	153,185
Realized gain on financial instruments, net	$	1,946	$	—	$	—	$	—		$	—		$	1,946
Unrealized loss on financial instruments, net	$	15,442	$	—	$	—	$	—		$	—		$	15,442
Segment income (loss) before income tax and    noncontrolling interests (1)	$	14,296	$	27,747	$	21,036	$	(4,089	)	$	(486	)	$	58,504
Income tax expense	$	1,086	$	862	$	—	$	—		$	—		$	1,948
Total assets	$	5,101,301	$	184,215	$	19,573	$	7,206		$	(109,678	)	$	5,202,617
Purchase of containers and fixed assets	$	420,971	$	12,706	$	—	$	—		$	—		$	433,677
Payments on container leaseback financing    receivable	$	281,445	$	—	$	—	$	—		$	—		$	281,445

(1) Container Ownership segment income (loss) before income tax and noncontrolling interests includes unrealized gain (loss) on financial instruments, net of $4,409, $(6,044) and $(15,442) for the years ended December 31, 2021, 2020 and 2019, respectively, and debt termination expense of $15,209, $8,750 and $0 for the years ended December 31, 2021, 2020 and 2019, 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 the Container Resale segments and the Container Ownership segment.

Geographic Segment Information

The Company’s container lessees use containers for their global trade utilizing many worldwide trade routes. The Company earns its revenue from international carriers when the containers are on hire. 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 years ended December 31, 2021, 2020 and 2019 based on customers’ and Container Investors’ primary domicile:

	Years ended December 31,
	2021		Percent of Total			2020		Percent of Total			2019		Percent of Total
Lease rental income:
Asia	$	373,614		49.8	%	$	302,709		50.4	%	$	329,567		53.2	%
Europe		343,351		45.7	%		266,431		44.3	%		255,495		41.2	%
North / South America		32,296		4.3	%		29,391		4.9	%		31,786		5.1	%
Bermuda		—		—			—		—			—		—
All other international		1,469		0.2	%		2,342		0.4	%		2,912		0.5	%
	$	750,730		100.0	%	$	600,873		100.0	%	$	619,760		100.0	%
Management fees, non-leasing:
Bermuda	$	1,699		50.6	%	$	2,797		53.1	%	$	4,576		60.2	%
Europe		1,530		45.5	%		2,397		45.5	%		2,334		30.8	%
Asia		45		1.3	%		11		0.2	%		28		0.4	%
North / South America		23		0.7	%		9		0.2	%		342		4.5	%
All other international		63		1.9	%		57		1.0	%		310		4.1	%
	$	3,360		100.0	%	$	5,271		100.0	%	$	7,590		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 years ended December 31, 2021, 2020 and 2019 based on the location of sale:

	Years ended December 31,
	2021		Percent of Total			2020		Percent of Total			2019		Percent of Total
Trading container sales proceeds:
Asia	$	14,317		44.7	%	$	14,896		46.6	%	$	39,519		67.3	%
North / South America		12,404		38.7	%		13,045		40.9	%		12,788		21.8	%
Europe		5,321		16.6	%		3,991		12.5	%		6,411		10.9	%
Bermuda		—		—			—		—			—		—
All other international		3		0.0	%		9		0.0	%		16		0.0	%
	$	32,045		100.0	%	$	31,941		100.0	%	$	58,734		100.0	%
Gain on sale of owned fleet containers, net:
Asia	$	46,328		68.9	%	$	13,082		48.1	%	$	7,714		36.0	%
Europe		10,516		15.7	%		5,538		20.3	%		5,577		26.1	%
North / South America		10,385		15.4	%		8,610		31.6	%		6,809		31.8	%
Bermuda		—		—			—		—			—		—
All other international		—		—			—		—			1,297		6.1	%
	$	67,229		100.0	%	$	27,230		100.0	%	$	21,397		100.0	%