Close

Form 10-Q Triton International For: Mar 31

May 3, 2022 1:35 PM EDT

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
trtn-20220331
0001660734--12-312022Q1FALSE00016607342022-01-012022-03-310001660734us-gaap:CommonStockMemberexch:XNYS2022-01-012022-03-310001660734us-gaap:SeriesAPreferredStockMemberexch:XNYS2022-01-012022-03-310001660734exch:XNYSus-gaap:SeriesBPreferredStockMember2022-01-012022-03-310001660734us-gaap:SeriesCPreferredStockMemberexch:XNYS2022-01-012022-03-310001660734us-gaap:SeriesDPreferredStockMemberexch:XNYS2022-01-012022-03-310001660734us-gaap:SeriesEPreferredStockMemberexch:XNYS2022-01-012022-03-3100016607342022-04-29xbrli:shares00016607342022-03-31iso4217:USD00016607342021-12-310001660734us-gaap:PreferredStockMember2021-12-31iso4217:USDxbrli:shares0001660734us-gaap:PreferredStockMember2022-03-310001660734trtn:DesignatedCommonStockMember2022-03-310001660734trtn:DesignatedCommonStockMember2021-12-310001660734trtn:UndesignatedCommonStockMember2022-03-310001660734trtn:UndesignatedCommonStockMember2021-12-3100016607342021-01-012021-03-310001660734us-gaap:PreferredStockMember2021-12-310001660734us-gaap:CommonStockMember2021-12-310001660734us-gaap:TreasuryStockMember2021-12-310001660734us-gaap:AdditionalPaidInCapitalMember2021-12-310001660734us-gaap:RetainedEarningsMember2021-12-310001660734us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001660734us-gaap:CommonStockMember2022-01-012022-03-310001660734us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001660734us-gaap:TreasuryStockMember2022-01-012022-03-310001660734us-gaap:RetainedEarningsMember2022-01-012022-03-310001660734us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001660734us-gaap:PreferredStockMember2022-03-310001660734us-gaap:CommonStockMember2022-03-310001660734us-gaap:TreasuryStockMember2022-03-310001660734us-gaap:AdditionalPaidInCapitalMember2022-03-310001660734us-gaap:RetainedEarningsMember2022-03-310001660734us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001660734us-gaap:PreferredStockMember2020-12-310001660734us-gaap:CommonStockMember2020-12-310001660734us-gaap:TreasuryStockMember2020-12-310001660734us-gaap:AdditionalPaidInCapitalMember2020-12-310001660734us-gaap:RetainedEarningsMember2020-12-310001660734us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-3100016607342020-12-310001660734us-gaap:CommonStockMember2021-01-012021-03-310001660734us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001660734us-gaap:RetainedEarningsMember2021-01-012021-03-310001660734us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001660734us-gaap:PreferredStockMember2021-03-310001660734us-gaap:CommonStockMember2021-03-310001660734us-gaap:TreasuryStockMember2021-03-310001660734us-gaap:AdditionalPaidInCapitalMember2021-03-310001660734us-gaap:RetainedEarningsMember2021-03-310001660734us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100016607342021-03-310001660734us-gaap:CreditConcentrationRiskMembertrtn:CustomerOneMembertrtn:OperatingAndCapitalLeasesBillingMember2022-01-012022-03-31xbrli:pure0001660734us-gaap:CreditConcentrationRiskMembertrtn:OperatingAndCapitalLeasesBillingMembertrtn:CustomerTwoMember2022-01-012022-03-310001660734us-gaap:CreditConcentrationRiskMembertrtn:OperatingAndCapitalLeasesBillingMembertrtn:CustomerThreeMember2022-01-012022-03-310001660734trtn:EquipmentHeldForSaleMember2022-01-012022-03-310001660734trtn:EquipmentHeldForSaleMember2021-01-012021-03-310001660734trtn:EquipmentnetofsellingcostsMember2022-01-012022-03-310001660734trtn:EquipmentnetofsellingcostsMember2021-01-012021-03-310001660734trtn:AboveMarketLeaseIntangiblesMember2022-03-310001660734trtn:EmployeesMemberus-gaap:RestrictedStockMember2022-01-012022-03-310001660734trtn:EmployeesMember2022-01-012022-03-310001660734us-gaap:SeriesAPreferredStockMember2019-03-312019-03-310001660734us-gaap:SeriesAPreferredStockMember2019-03-310001660734us-gaap:SeriesBPreferredStockMember2019-06-302019-06-300001660734us-gaap:SeriesBPreferredStockMember2019-06-300001660734us-gaap:SeriesCPreferredStockMember2019-11-302019-11-300001660734us-gaap:SeriesCPreferredStockMember2019-11-300001660734us-gaap:SeriesDPreferredStockMemberus-gaap:SubsequentEventMember2022-04-262022-04-260001660734us-gaap:SeriesDPreferredStockMember2020-01-310001660734us-gaap:SeriesEPreferredStockMember2021-08-312021-08-310001660734us-gaap:SeriesEPreferredStockMember2021-08-310001660734us-gaap:SeriesAPreferredStockMember2022-01-012022-03-310001660734us-gaap:SeriesAPreferredStockMember2021-01-012021-03-310001660734us-gaap:SeriesBPreferredStockMember2022-01-012022-03-310001660734us-gaap:SeriesBPreferredStockMember2021-01-012021-03-310001660734us-gaap:SeriesCPreferredStockMember2022-01-012022-03-310001660734us-gaap:SeriesCPreferredStockMember2021-01-012021-03-310001660734us-gaap:SeriesDPreferredStockMember2022-01-012022-03-310001660734us-gaap:SeriesDPreferredStockMember2021-01-012021-03-310001660734us-gaap:SeriesEPreferredStockMember2022-01-012022-03-310001660734us-gaap:SeriesEPreferredStockMember2021-01-012021-03-310001660734us-gaap:PreferredStockMember2022-01-012022-03-310001660734us-gaap:PreferredStockMember2021-01-012021-03-310001660734us-gaap:CommonStockMember2022-01-012022-03-310001660734us-gaap:CommonStockMember2021-01-012021-03-310001660734us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-12-310001660734us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310001660734us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-01-012022-03-310001660734us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-03-310001660734us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-03-310001660734us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310001660734us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-12-310001660734us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001660734us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-01-012021-03-310001660734us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-03-310001660734us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-03-310001660734us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310001660734us-gaap:OtherAssetsMember2022-03-310001660734us-gaap:OtherAssetsMember2021-12-310001660734trtn:AccountsPayableandOtherAccruedExpensesMember2022-03-310001660734trtn:AccountsPayableandOtherAccruedExpensesMember2021-12-310001660734us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-03-310001660734us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-03-310001660734us-gaap:CustomerConcentrationRiskMembertrtn:CustomerOneMembertrtn:LeaseFinancePortfolioBenchmarkMember2021-01-012021-12-310001660734us-gaap:CustomerConcentrationRiskMembertrtn:CustomerOneMembertrtn:LeaseFinancePortfolioBenchmarkMember2022-01-012022-03-310001660734trtn:AssetBackedSecuritizationTermNotesMember2022-03-310001660734trtn:AssetBackedSecuritizationTermNotesMember2021-12-310001660734trtn:AssetBackedWarehouseFacilityMember2022-03-310001660734trtn:AssetBackedWarehouseFacilityMember2021-12-310001660734us-gaap:CapitalLeaseObligationsMember2022-03-310001660734us-gaap:CapitalLeaseObligationsMember2021-12-310001660734trtn:SecruedDebtMember2022-03-310001660734trtn:SecruedDebtMember2021-12-310001660734trtn:CorporateNotesMember2022-03-310001660734trtn:CorporateNotesMember2021-12-310001660734trtn:TermNotesMember2022-03-310001660734trtn:TermNotesMember2021-12-310001660734us-gaap:LineOfCreditMember2022-03-310001660734us-gaap:LineOfCreditMember2021-12-310001660734us-gaap:UnsecuredDebtMember2022-03-310001660734us-gaap:UnsecuredDebtMember2021-12-310001660734us-gaap:FairValueInputsLevel2Member2022-03-310001660734us-gaap:FairValueInputsLevel2Member2021-12-310001660734trtn:SecondRevolvingCreditFacilityMember2022-03-310001660734trtn:LineofCreditandSecondRevolvingCreditFacilityMember2022-03-310001660734trtn:ExcludingImpactMembertrtn:FixedRateDebtMember2022-03-310001660734trtn:ExcludingImpactMembertrtn:FixedRateDebtMember2022-01-012022-03-310001660734trtn:ExcludingImpactMembertrtn:VariableRateDebtMember2022-03-310001660734trtn:ExcludingImpactMembertrtn:VariableRateDebtMember2022-01-012022-03-310001660734trtn:IncludingImpactMembertrtn:FixedRateDebtMember2022-03-310001660734trtn:HedgedVariableRateDebtMemberus-gaap:DesignatedAsHedgingInstrumentMembertrtn:IncludingImpactMember2022-03-310001660734trtn:FixedandHedgedDebtMemberus-gaap:DesignatedAsHedgingInstrumentMembertrtn:IncludingImpactMember2022-03-310001660734trtn:UnhedgedDebtMembertrtn:IncludingImpactMemberus-gaap:NondesignatedMember2022-03-310001660734trtn:IncludingImpactMember2022-03-310001660734trtn:SeniorNote325Membertrtn:CorporateNotesMember2022-01-192022-01-190001660734trtn:SeniorNote325Membertrtn:CorporateNotesMember2022-01-1900016607342022-02-010001660734trtn:SecondRevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-01-012022-03-310001660734trtn:TermLoanMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-01-012022-03-310001660734trtn:CorporateNotesMembersrt:MinimumMember2022-01-012022-03-310001660734srt:MaximumMembertrtn:CorporateNotesMember2022-01-012022-03-310001660734us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2022-03-310001660734trtn:InterestRateSwapTerminatedOnJune252021AMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001660734trtn:InterestRateSwapTerminatedOnJune252021BMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001660734us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2022-03-310001660734us-gaap:InterestRateSwapMember2022-01-012022-03-310001660734us-gaap:InterestRateCapMember2022-03-310001660734us-gaap:InterestRateCapMember2022-01-012022-03-310001660734us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMember2022-03-310001660734us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForwardContractsMember2022-01-012022-03-310001660734us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2022-01-012022-03-310001660734us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2021-01-012021-03-310001660734us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2022-01-012022-03-310001660734us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2021-01-012021-03-310001660734us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:OtherComprehensiveIncomeMember2022-01-012022-03-310001660734us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:OtherComprehensiveIncomeMember2021-01-012021-03-31trtn:segment0001660734trtn:EquipmentLeasingMember2022-01-012022-03-310001660734trtn:EquipmentTradingMember2022-01-012022-03-310001660734trtn:EquipmentLeasingMember2021-01-012021-03-310001660734trtn:EquipmentTradingMember2021-01-012021-03-310001660734trtn:EquipmentLeasingMember2022-03-310001660734trtn:EquipmentTradingMember2022-03-310001660734trtn:EquipmentLeasingMember2021-12-310001660734trtn:EquipmentTradingMember2021-12-310001660734srt:AsiaMember2022-01-012022-03-310001660734srt:AsiaMember2021-01-012021-03-310001660734srt:EuropeMember2022-01-012022-03-310001660734srt:EuropeMember2021-01-012021-03-310001660734srt:AmericasMember2022-01-012022-03-310001660734srt:AmericasMember2021-01-012021-03-310001660734country:BM2022-01-012022-03-310001660734country:BM2021-01-012021-03-310001660734trtn:OtherInternationalCountriesMember2022-01-012022-03-310001660734trtn:OtherInternationalCountriesMember2021-01-012021-03-310001660734trtn:TriStarMember2022-03-310001660734trtn:TriStarMembertrtn:DirectFinancingLeaseReceivableMember2021-01-012021-03-310001660734trtn:TriStarMembertrtn:DirectFinancingLeaseReceivableMember2022-01-012022-03-310001660734trtn:TriStarMembertrtn:DirectFinancingLeaseReceivableMember2022-03-310001660734trtn:TriStarMembertrtn:DirectFinancingLeaseReceivableMember2021-12-310001660734us-gaap:SubsequentEventMember2022-04-260001660734us-gaap:SeriesAPreferredStockMemberus-gaap:SubsequentEventMember2022-04-262022-04-260001660734us-gaap:SeriesAPreferredStockMemberus-gaap:SubsequentEventMember2022-04-260001660734us-gaap:SubsequentEventMemberus-gaap:SeriesBPreferredStockMember2022-04-262022-04-260001660734us-gaap:SubsequentEventMemberus-gaap:SeriesBPreferredStockMember2022-04-260001660734us-gaap:SeriesCPreferredStockMemberus-gaap:SubsequentEventMember2022-04-262022-04-260001660734us-gaap:SeriesCPreferredStockMemberus-gaap:SubsequentEventMember2022-04-260001660734us-gaap:SeriesDPreferredStockMemberus-gaap:SubsequentEventMember2022-04-260001660734us-gaap:SeriesEPreferredStockMemberus-gaap:SubsequentEventMember2022-04-262022-04-260001660734us-gaap:SeriesEPreferredStockMemberus-gaap:SubsequentEventMember2022-04-260001660734trtn:SecondRevolvingCreditFacilityMembersrt:ScenarioForecastMembertrtn:SecuredOvernightFinancingRateSOFRMember2025-04-272025-04-270001660734trtn:SecondRevolvingCreditFacilityMembersrt:ScenarioForecastMembertrtn:SecuredOvernightFinancingRateSOFRMember2029-04-272029-04-27

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For The Quarterly Period Ended March 31, 2022
Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from                             to   
Commission file number - 001-37827
Triton International Limited
(Exact name of registrant as specified in the charter)
Bermuda
 
98-1276572
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)

Victoria Place, 5th Floor, 31 Victoria Street, Hamilton HM 10, Bermuda
(Address of principal executive office)
(441294-8033
(Registrant's telephone number including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
   Common shares, $0.01 par value per shareTRTNNew York Stock Exchange
8.50% Series A Cumulative Redeemable Perpetual Preference SharesTRTN PRANew York Stock Exchange
8.00% Series B Cumulative Redeemable Perpetual Preference SharesTRTN PRBNew York Stock Exchange
7.375% Series C Cumulative Redeemable Perpetual Preference SharesTRTN PRCNew York Stock Exchange
6.875% Series D Cumulative Redeemable Perpetual Preference SharesTRTN PRDNew York Stock Exchange
5.75% Series E Cumulative Redeemable Perpetual Preference SharesTRTN PRENew York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirement for the past 90 days. Yes     No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes     No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer Accelerated Filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act). Yes     No 
As of April 29, 2022, there were 64,213,200 common shares at $0.01 par value per share of the registrant outstanding.


Triton International Limited
Index
Page No.

2


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This quarterly report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, that involve substantial risks and uncertainties. In addition, we, or our executive officers on our behalf, may from time to time make forward-looking statements in reports and other documents we file with the Securities and Exchange Commission, or SEC, or in connection with oral statements made to the press, potential investors or others. All statements, other than statements of historical facts, including statements regarding our strategy, future operations, future financial position, future revenues, future costs, prospects, plans and objectives of management are forward-looking statements. The words "expect," "estimate," "anticipate," "predict," "believe," "think," "plan," "will," "should," "intend," "seek," "potential" and similar expressions and variations are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.
All forward-looking statements address matters that involve risks and uncertainties, many of which are beyond Triton's control. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements. These factors include, without limitation, economic, business, competitive, market and regulatory conditions and the following:
the impact of COVID-19 on our business and financial results;
decreases in the demand for leased containers;
decreases in market leasing rates for containers;
difficulties in re-leasing containers after their initial fixed-term leases;
our customers' decisions to buy rather than lease containers;
our dependence on a limited number of customers and suppliers;
customer defaults;
decreases in the selling prices of used containers;
extensive competition in the container leasing industry;
risks stemming from the international nature of our businesses, including global economic trends and geopolitical risks;
decreases in demand for international trade;
disruption to our operations resulting from the political and economic policies of the United States and other countries, particularly China, including but not limited to, the impact of trade wars, duties and tariffs;
disruption to our operations from failures of, or attacks on, our information technology systems;
disruption to our operations as a result of natural disasters;
compliance with laws and regulations related to economic and trade sanctions, security, anti-terrorism, environmental protection and anti-corruption;
the availability and cost of capital;
restrictions imposed by the terms of our debt agreements;
changes in tax laws in Bermuda, the United States and other countries; and
other risks and uncertainties, including those listed under the caption "Risk Factors" in our Annual Report on Form 10-K, filed with the SEC on February 15, 2022 (the "Form 10-K"), in this Report on Form 10-Q and in any other Form 10-Q filed or to be filed by us, as well as in the other documents we file with the SEC from time to time, and such risks and uncertainties are specifically incorporated herein by reference.
Forward-looking statements speak only as of the date the statements are made. Except as required under the federal securities laws and rules and regulations of the SEC, we undertake no obligation to update or revise forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. We caution you not to unduly rely on the forward-looking statements when evaluating the information presented in this report.

3


ITEM 1.    FINANCIAL STATEMENTS

TRITON INTERNATIONAL LIMITED
Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
March 31, 2022December 31,
2021
ASSETS:  
Leasing equipment, net of accumulated depreciation of $4,048,194 and $3,919,181
$9,945,967 $10,201,113 
Net investment in finance leases1,696,543 1,558,290 
Equipment held for sale79,061 48,746 
Revenue earning assets11,721,571 11,808,149 
Cash and cash equivalents71,969 106,168 
Restricted cash121,431 124,370 
Accounts receivable, net of allowances of $1,144 and $1,178
293,442 294,792 
Goodwill236,665 236,665 
Lease intangibles, net of accumulated amortization of $284,111 and $281,340
14,346 17,117 
Other assets38,989 50,346 
Fair value of derivative instruments36,401 6,231 
Total assets$12,534,814 $12,643,838 
LIABILITIES AND SHAREHOLDERS' EQUITY:  
Equipment purchases payable$56,804 $429,568 
Fair value of derivative instruments 2,906 48,277 
Deferred revenue90,417 92,198 
Accounts payable and other accrued expenses69,490 70,557 
Net deferred income tax liability387,211 376,009 
Debt, net of unamortized costs of $65,069 and $63,794
8,727,432 8,562,517 
Total liabilities9,334,260 9,579,126 
Shareholders' equity:  
Preferred shares, $0.01 par value, at liquidation preference
730,000 730,000 
Common shares, $0.01 par value, 270,000,000 shares authorized, 81,367,045 and 81,295,366 shares issued, respectively
814 813 
Undesignated shares, $0.01 par value, 800,000 shares authorized, no shares issued and outstanding
  
Treasury shares, at cost, 16,686,873 and 15,429,499 shares, respectively
(602,526)(522,360)
Additional paid-in capital901,150 904,224 
Accumulated earnings2,139,777 2,000,854 
Accumulated other comprehensive income (loss)31,339 (48,819)
Total shareholders' equity3,200,554 3,064,712 
Total liabilities and shareholders' equity$12,534,814 $12,643,838 
The accompanying Notes to the Unaudited Consolidated Financial Statements are an integral part of these statements.

4





TRITON INTERNATIONAL LIMITED
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
 Three Months Ended March 31,
20222021
Leasing revenues:  
Operating leases$388,945 $339,794 
Finance leases28,143 6,949 
Total leasing revenues417,088 346,743 
Equipment trading revenues34,120 25,945 
Equipment trading expenses(29,979)(17,804)
Trading margin4,141 8,141 
Net gain on sale of leasing equipment28,969 21,967 
Operating expenses:
Depreciation and amortization160,716 143,307 
Direct operating expenses6,220 9,370 
Administrative expenses21,300 20,921 
Provision (reversal) for doubtful accounts(27)(2,464)
Total operating expenses188,209 171,134 
Operating income (loss)261,989 205,717 
Other expenses:
Interest and debt expense54,510 54,623 
Unrealized (gain) loss on derivative instruments, net(439) 
Debt termination expense36  
Other (income) expense, net(308)(481)
Total other expenses53,799 54,142 
Income (loss) before income taxes208,190 151,575 
Income tax expense (benefit)13,932 11,737 
Net income (loss)$194,258 $139,838 
Less: dividend on preferred shares13,028 10,513 
Net income (loss) attributable to common shareholders$181,230 $129,325 
Net income per common share—Basic$2.79 $1.93 
Net income per common share—Diluted$2.78 $1.92 
Cash dividends paid per common share$0.65 $0.57 
Weighted average number of common shares outstanding—Basic64,887 66,935 
Dilutive restricted shares267 282 
Weighted average number of common shares outstanding—Diluted65,154 67,217 
   
The accompanying Notes to the Unaudited Consolidated Financial Statements are an integral part of these statements.

5





TRITON INTERNATIONAL LIMITED
Consolidated Statements of Comprehensive Income
(In thousands)
(Unaudited)
 Three Months Ended March 31,
 20222021
Net income (loss)$194,258 $139,838 
Other comprehensive income (loss), net of tax:  
Change in derivative instruments designated as cash flow hedges74,017 62,850 
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges6,307 7,102 
Foreign currency translation adjustment(166)21 
Other comprehensive income (loss), net of tax80,158 69,973 
Comprehensive income274,416 209,811 
Less:
Dividend on preferred shares13,028 10,513 
Comprehensive income attributable to common shareholders$261,388 $199,298 
Tax (benefit) provision on change in derivative instruments designated as cash flow hedges$5,546 $2,558 
Tax (benefit) provision on reclassification of (gain) loss on derivative instruments designated as cash flow hedges$463 $468 
   

The accompanying Notes to the Unaudited Consolidated Financial Statements are an integral part of these statements.

6





TRITON INTERNATIONAL LIMITED
Consolidated Statements of Shareholders' Equity
(In thousands, except share amounts)
(Unaudited)
Preferred SharesCommon SharesTreasury SharesAdd'l Paid in CapitalAccumulated EarningsAccumulated Other Comprehensive IncomeTotal Equity
SharesAmountSharesAmountSharesAmount
Balance as of December 31, 202129,200,000 $730,000 81,295,366 $813 15,429,499 $(522,360)$904,224 $2,000,854 $(48,819)$3,064,712 
Share-based compensation— — 164,932 2 — — 2,554 — — 2,556 
Treasury shares acquired— — — — 1,257,374 (80,166)— — — (80,166)
Share repurchase to settle shareholder tax obligations— — (93,253)(1)— — (5,628)— — (5,629)
Net income (loss)— — — — — — — 194,258 — 194,258 
Other comprehensive income (loss)— — — — — — — — 80,158 80,158 
Common shares dividend declared— — — — — — — (42,307)— (42,307)
Preferred shares dividend declared— — — — — — — (13,028)— (13,028)
Balance as of March 31, 202229,200,000 $730,000 81,367,045 $814 16,686,873 $(602,526)$901,150 $2,139,777 $31,339 $3,200,554 





`Preferred SharesCommon SharesTreasury SharesAdd'l Paid in CapitalAccumulated EarningsAccumulated Other Comprehensive IncomeTotal Equity
SharesAmountSharesAmountSharesAmount
Balance as of December 31, 202022,200,000 $555,000 81,151,723 $812 13,901,326 $(436,822)$905,323 $1,674,670 $(133,035)$2,565,948 
Share-based compensation— — 207,077 2 — — 1,713 — — 1,715 
Share repurchase to settle shareholder tax obligations— — (85,466)(1)— — (4,145)— — (4,146)
Net income (loss)— — — — — — — 139,838 — 139,838 
Other comprehensive income (loss)— — — — — — — — 69,973 69,973 
Common shares dividend declared— — — — — — — (38,497)— (38,497)
Preferred shares dividend declared— — — — — — — (10,513)— (10,513)
Balance as of March 31, 202122,200,000 $555,000 81,273,334 $813 13,901,326 $(436,822)$902,891 $1,765,498 $(63,062)$2,724,318 
The accompanying Notes to the Unaudited Consolidated Financial Statements are an integral part of these statements.

7





TRITON INTERNATIONAL LIMITED
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 Three Months Ended March 31,
 20222021
Cash flows from operating activities:  
Net income (loss)$194,258 $139,838 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:  
Depreciation and amortization160,716 143,307 
Amortization of deferred debt cost and other debt related amortization3,526 1,142 
Lease related amortization3,013 4,857 
Share-based compensation expense2,556 1,715 
Net (gain) loss on sale of leasing equipment(28,969)(21,967)
Unrealized (gain) loss on derivative instruments(439) 
Debt termination expense36  
Deferred income taxes5,193 11,615 
Changes in operating assets and liabilities:
Accounts receivable(23,835)(20,300)
Deferred revenue35,237 9,472 
Accounts payable and other accrued expenses4,143 1,886 
Net equipment sold (purchased) for resale activity(7,749)1,579 
Cash received (paid) for settlement of interest rate swaps12,178 5,558 
Cash collections on finance lease receivables, net of income earned28,745 12,866 
Other assets10,061 9,420 
Net cash provided by (used in) operating activities398,670 300,988 
Cash flows from investing activities:  
Purchases of leasing equipment and investments in finance leases(511,027)(579,211)
Proceeds from sale of equipment, net of selling costs57,274 53,512 
Other(135)15 
Net cash provided by (used in) investing activities(453,888)(525,684)
Cash flows from financing activities:  
Purchases of treasury shares(81,720) 
Debt issuance costs(5,507)(13,803)
Borrowings under debt facilities932,600 1,504,850 
Payments under debt facilities and finance lease obligations(766,686)(979,199)
Dividends paid on preferred shares(13,028)(10,513)
Dividends paid on common shares(41,950)(38,153)
Other (5,629)(4,146)
Net cash provided by (used in) financing activities18,080 459,036 
Net increase (decrease) in cash, cash equivalents and restricted cash$(37,138)$234,340 
Cash, cash equivalents and restricted cash, beginning of period230,538 151,996 
Cash, cash equivalents and restricted cash, end of period$193,400 $386,336 
Supplemental disclosures:
Interest paid$39,127 $42,133 
Income taxes paid (refunded)$137 $155 
Supplemental non-cash investing activities:  
Equipment purchases payable$56,804 $342,357 
The accompanying Notes to the Unaudited Consolidated Financial Statements are an integral part of these statements.

8




TRITON INTERNATIONAL LIMITED
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1—Description of the Business, Basis of Presentation and Accounting Policy Updates

Description of the Business

Triton International Limited ("Triton" or the "Company"), through its subsidiaries, leases intermodal transportation equipment, primarily maritime containers, and provides maritime container management services through a worldwide network of service subsidiaries, third-party depots and other facilities. The majority of the Company's business is derived from leasing its containers to shipping line customers through a variety of long-term and short-term contractual lease arrangements. The Company also sells containers from its equipment leasing fleet as well as containers specifically acquired for resale from third parties. The Company's registered office is located in Bermuda.

Basis of Presentation

The unaudited consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all information and footnotes required by GAAP for complete financial statements.

The interim consolidated balance sheet as of March 31, 2022; the consolidated statements of operations, the consolidated statements of comprehensive income, and the consolidated statements of shareholders' equity for the three months ended March 31, 2022 and 2021, and the consolidated statements of cash flows for the three months ended March 31, 2022 and 2021 are unaudited. The consolidated balance sheet as of December 31, 2021, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by GAAP. The unaudited interim financial statements have been prepared on a basis consistent with the Company's annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to state fairly the Company's financial position, results of operations, comprehensive income, shareholders' equity, and cash flows for the periods presented. The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The consolidated results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2022 or for any other future annual or interim period.

These financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2021 included in the Company's Annual Report on Form 10-K which was filed with the SEC on February 15, 2022. The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain changes in presentation have been made to conform the prior period presentation to current period reporting.
Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities in the financial statements. Such estimates include, but are not limited to, the Company's estimates in connection with leasing equipment, including residual values and depreciable lives, values of assets held for sale and other long lived assets, provision for income tax, allowance for doubtful accounts, share-based compensation, goodwill and intangible assets. Actual results could differ from those estimates.

Concentration of Credit Risk

The Company's equipment leases and trade receivables subject it to potential credit risk. The Company extends credit to its customers based upon an evaluation of each customer's financial condition and credit history. Evaluations of the financial condition and associated credit risk of customers are performed on an ongoing basis. The Company's three largest customers accounted for 19%, 19%, and 10%, respectively, of the Company's lease billings during the three months ended March 31, 2022.


9


TRITON INTERNATIONAL LIMITED
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Fair Value Measurements

For information on the fair value of equipment held for sale, debt, and the fair value of derivative instruments, please refer to Note 2 - "Equipment Held for Sale", Note 7 - "Debt" and Note 8 - "Derivative Instruments", respectively.

New Accounting Pronouncements

Recently Adopted Accounting Standards Updates

Lessors - Certain Leases with Variable Lease Payments

In July 2021, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2021-05, Lease (Topic 842): Lessors - Certain Leases with Variable Lease Payments. This guidance amends the lease classification accounting for lessors for certain leases with variable lease payments. The Company's adoption of this standard on January 1, 2022 had no impact on its consolidated financial statements.

Note 2—Equipment Held for Sale

The Company's equipment held for sale is recorded at the lower of fair value less cost to sell, or carrying value at the time identified for sale. Fair value is measured using Level 2 inputs and is based predominantly on recent sales prices. An impairment charge is recorded when the carrying value of the asset exceeds its fair value less cost to sell. The following table summarizes the Company's net impairment charges recorded in Net gain on sale of leasing equipment on the consolidated statements of operations (in thousands):
Three Months Ended March 31,
20222021
Impairment (loss) reversal on equipment held for sale$(73)$5 
Gain (loss) on sale of equipment, net of selling costs29,042 21,962 
Net gain on sale of leasing equipment$28,969 $21,967 

Note 3—Intangible Assets

Intangible assets consist of lease intangibles for leases acquired with lease rates above market in a business combination. The following table summarizes the amortization of intangible assets as of March 31, 2022 (in thousands):
Years ending December 31,Total Intangible Assets
2022$7,726 
20234,657
20241,963
Total$14,346 

Amortization expense related to intangible assets was $2.8 million and $4.6 million and for the three months ended March 31, 2022 and 2021, respectively.

Note 4—Share-Based Compensation

The Company recognizes share-based compensation expense for share-based payment transactions based on the grant date fair value. The expense is recognized over the employee's requisite service period, which is generally the vesting period of the equity award. The Company recognized share-based compensation expense in administrative expenses of $2.6 million and $1.7 million for the three months ended March 31, 2022 and 2021, respectively. Share-based compensation expense includes charges for performance-based shares and units that are deemed probable to vest.

As of March 31, 2022, the total unrecognized compensation expense related to non-vested restricted share awards and units was $17.6 million, which is expected to be recognized on a straight-line basis through January 2025.
10


TRITON INTERNATIONAL LIMITED
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)


During the three months ended March 31, 2022, the Company issued 212,062 restricted shares, and canceled 89,710 vested shares to settle payroll taxes on behalf of employees. Additional shares may be issued based upon the satisfaction of certain performance criteria. Additionally, the Company issued 9,527 shares to employees that vested immediately and canceled 3,543 vested shares to settle payroll taxes.

Note 5—Other Equity Matters

Share Repurchase Program

The Company's Board of Directors authorized repurchases of shares up to a specified dollar amount as part of its repurchase program. Purchases under the repurchase program may be made in the open market or privately negotiated transactions, and may include transactions pursuant to a repurchase plan administered in accordance with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended. Purchases may be made from time to time at the Company's discretion and the timing and amount of any share repurchases will be determined based on share price, market conditions, legal requirements, and other factors. The repurchase program does not obligate the Company to acquire any particular amount of common shares, and the Company may suspend or discontinue the repurchase program at any time.

During the three months ended March 31, 2022, the Company repurchased a total of 1,257,374 common shares at an average price per-share of $63.74 for a total of $80.2 million.

Preferred Shares

The following table summarizes the Company's preferred share issuances (each, a "Series"):
Preferred Share OfferingIssuanceLiquidation Preference (in thousands)
# of Shares(1)
Series A 8.50% Cumulative Redeemable Perpetual Preference Shares ("Series A")
March 2019$86,250 3,450,000 
Series B 8.00% Cumulative Redeemable Perpetual Preference Shares ("Series B")
June 2019143,750 5,750,000 
Series C 7.375% Cumulative Redeemable Perpetual Preference Shares ("Series C")
November 2019175,000 7,000,000 
Series D 6.875% Cumulative Redeemable Perpetual Preference Shares ("Series D")
January 2020150,000 6,000,000 
Series E 5.75% Cumulative Redeemable Perpetual Preference Shares ("Series E")
August 2021175,000 7,000,000 
$730,000 29,200,000 
(1)     Represents number of shares authorized, issued, and outstanding.

Each Series of preferred shares may be redeemed at the Company's option, at any time after approximately five years from original issuance, in whole or in part at a redemption price, plus an amount equal to all accumulated and unpaid dividends, whether or not declared. The Company may also redeem each Series of preferred shares prior to the lapse of the five year period upon the occurrence of certain events as described in each instrument, such as transactions that either transfer ownership of substantially all assets to a single entity or establish a majority voting interest by a single entity, and cause a downgrade or withdrawal of rating by the rating agency within 60 days of the event. If the Company does not elect to redeem each Series upon the occurrence of the preceding events, holders of preferred shares may have the right to convert their preferred shares into common shares. Specifically for Series E only, the Company may redeem the Series E Preference Shares if an applicable rating agency changes the methodology or criteria that were employed in assigning equity credit to securities similar to the Series E Preference Shares when originally issued, which either (a) shortens the period of time during which equity credit pertaining to the Series E Preference Shares would have been in effect had the methodology not been changed or (b) reduces the amount of equity credit as compared with the amount of equity credit that the rating agency had assigned to the Series E Preference Shares when originally issued.

Holders of preferred shares generally have no voting rights. If the Company fails to pay dividends for six or more quarterly periods (whether or not consecutive), holders will be entitled to elect two additional directors to the Board of Directors and the size of the Board of Directors will be increased to accommodate such election. Such right to elect two directors will continue until such time as there are no accumulated and unpaid dividends in arrears.
11


TRITON INTERNATIONAL LIMITED
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)


Dividends

Dividends on shares of each Series are cumulative from the date of original issue and will be payable quarterly in arrears on the 15th day of March, June, September and December of each year, when, as and if declared by the Company's Board of Directors. Dividends will be payable equal to the stated rate per annum of the $25.00 liquidation preference per share. The Series rank senior to the Company's common shares with respect to dividend rights and rights upon the Company's liquidation, dissolution or winding up, whether voluntary or involuntary.

The Company paid the following quarterly dividends during the three months ended March 31, 2022 and 2021 on its issued and outstanding Series (in millions except for the per-share amounts):
Three Months Ended March 31,
20222021
SeriesPer Share PaymentAggregate Payment Per Share PaymentAggregate Payment
A(1)
$0.53$1.8$0.53$1.8
B$0.50$2.9$0.50$2.9
C(1)
$0.46$3.2$0.46$3.2
D(1)
$0.43$2.6$0.43$2.6
E(1)
$0.36$2.5$$
Total$13.0$10.5
(1)     Per share payments rounded to the nearest whole cent.

As of March 31, 2022, the Company had cumulative unpaid preferred dividends of $2.2 million.

Common Share Dividends

The Company paid the following quarterly dividends during the three months ended March 31, 2022 and 2021 on its issued common shares (in millions except for the per-share amounts):
Three Months Ended March 31,
20222021
Per Share PaymentAggregate Payment Per Share PaymentAggregate Payment
$0.65$42.0$0.57$38.2

Accumulated Other Comprehensive Income

The following table summarizes the components of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2022 and 2021 (in thousands):
Cash Flow
Hedges
Foreign
Currency
Translation
Accumulated Other Comprehensive (Loss) Income
Balance as of December 31, 2021$(44,205)$(4,614)$(48,819)
Change in derivative instruments designated as cash flow hedges(1)
74,017  74,017 
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges(1)
6,307  6,307 
Foreign currency translation adjustment (166)(166)
Balance as of March 31, 2022$36,119 $(4,780)$31,339 

12


TRITON INTERNATIONAL LIMITED
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Cash Flow
Hedges
Foreign
Currency
Translation
Accumulated Other Comprehensive (Loss) Income
Balance as of December 31, 2020$(128,526)$(4,509)$(133,035)
Change in derivative instruments designated as cash flow hedges(1)
62,850  62,850 
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges(1)
7,102  7,102 
Foreign currency translation adjustment 21 21 
Balance as of March 31, 2021$(58,574)$(4,488)$(63,062)
(1)    Refer to Note 8 - "Derivative Instruments" for reclassification impact on the Consolidated Statements of Operations

Note 6—Leases

Lessee

The Company's leases are primarily for multiple office facilities which are contracted under various cancelable and non-cancelable operating leases, most of which provide extension or early termination options. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants.

As of March 31, 2022, the weighted average implicit rate was 3.52% and the weighted average remaining lease term was 1.9 years.

The following table summarizes the impact of the Company's leases in its financial statements (in thousands):
Balance SheetFinancial statement captionMarch 31, 2022December 31, 2021
Right-of-use asset - operatingOther assets$4,372 $5,099 
Lease liability - operatingAccounts payable and other accrued expenses$4,974 $5,790 
Three Months Ended March 31,
Income StatementFinancial statement caption20222021
Operating lease cost(1)
Administrative expenses$824 $722 
(1)     Includes short-term leases that are immaterial.

Cash paid for amounts of lease liabilities included in operating cash flows was $0.9 million and $0.7 million for the three months ended March 31, 2022 and March 31, 2021, respectively.
13


TRITON INTERNATIONAL LIMITED
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)


Lessor

Operating Leases

As of March 31, 2022, the Company has deferred revenue balances related to operating leases with uneven payment terms. These amounts will be amortized to revenue as follows (in thousands):

Years ending December 31,
2022$4,934 
20239,440 
202411,946 
202511,610 
202611,005 
2027 and thereafter41,482 
Total$90,417 

Finance Leases

The following table summarizes the components of the net investment in finance leases (in thousands):
March 31, 2022December 31, 2021
Future minimum lease payment receivable(1)
$2,292,614 $2,122,165 
Estimated residual receivable(2)
221,413 205,994 
Gross finance lease receivables(3)
2,514,027 2,328,159 
Unearned income(4)
(817,484)(769,869)
Net investment in finance leases(5)
$1,696,543 $1,558,290 
(1)     There were no executory costs included in gross finance lease receivables as of March 31, 2022 and December 31, 2021.
(2)     The Company's finance leases generally include a purchase option at nominal amounts that is reasonably certain to be exercised, and therefore, the Company has immaterial residual value risk for assets.
(3)    The gross finance lease receivable is reduced as billed to customers and reclassified to accounts receivable until paid by customers.
(4)     There were no unamortized initial direct costs as of March 31, 2022 and December 31, 2021.
(5)    One major customer represented 91% of the Company's finance lease portfolio for both March 31, 2022 and December 31, 2021. No other customer represented more than 10% of the Company's finance lease portfolio in each of those periods.

The Company’s finance lease portfolio lessees are primarily comprised of the largest international shipping lines. In its estimate of expected credit losses, the Company evaluates the overall credit quality of its finance lease portfolio. The Company considers an account past due when a payment has not been received in accordance with the terms of the related lease agreement and maintains allowances, if necessary, for doubtful accounts. These allowances are based on, but not limited to, historical experience which includes stronger and weaker economic cycles, each lessee's payment history, management's current assessment of each lessee's financial condition, consideration of current economic conditions and reasonable market forecasts. As of March 31, 2022, the Company does not have an allowance on its gross finance lease receivables and does not have any material past due balances.

14


TRITON INTERNATIONAL LIMITED
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 7—Debt

The table below summarizes the Company's key terms and carrying value of debt (in thousands):
March 31, 2022December 31, 2021
Outstanding Borrowings
Contractual Weighted Avg Interest Rate(1)
Maturity Range(1)
Outstanding Borrowings
FromTo
Secured Debt Financings
Asset-backed securitization term notes$3,710,133 2.06%August 2023February 2031$3,801,777 
Asset-backed securitization warehouse202,000 2.30%November 2027November 2027225,000 
Finance lease obligations 4.93%February 2022February 202215,042 
Total secured debt financings3,912,133 4,041,819 
Unsecured Debt Financings
Senior notes2,900,000 2.11%August 2023March 20322,300,000 
Term loan facilities1,152,000 1.84%May 2026May 20261,176,000 
Revolving credit facilities834,000 1.82%October 2026October 20261,112,000 
Total unsecured debt financings4,886,000 4,588,000 
Unamortized debt costs(65,069)(63,794)
Unamortized debt premiums & discounts(5,632)(3,508)
   Debt, net of unamortized costs$8,727,432 $8,562,517 
(1)     Data as of March 31, 2022.

The fair value of total debt outstanding was $8,333.3 million and $8,572.9 million as of March 31, 2022 and December 31, 2021, respectively, and was measured using Level 2 inputs.

As of March 31, 2022, the maximum borrowing levels for the Asset-backed Securitization ("ABS") warehouse and the revolving credit facilities are $1,125.0 million and $2,000.0 million, respectively. These facilities are governed by either borrowing bases or an unencumbered asset test that limits borrowing capacity. As of March 31, 2022, the availability under these credit facilities without adding additional assets to the borrowing base was approximately $1,095.3 million.

The Company is subject to certain financial covenants under its debt agreements. As of March 31, 2022 and December 31, 2021, the Company was in compliance with all financial covenants in accordance with the terms of its debt agreements.

The Company hedges the risks associated with fluctuations in interest rates on a portion of its floating-rate debt by entering into interest rate swap agreements that convert a portion of its floating-rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense. The following table summarizes the Company's outstanding fixed-rate and floating-rate debt as of March 31, 2022 (in thousands):
Balance OutstandingContractual Weighted Avg Interest RateMaturity RangeWeighted Avg Remaining Term
FromTo
Excluding impact of derivative instruments:
Fixed-rate debt$6,021,7152.08%Aug 2023Mar 20325.1 years
Floating-rate debt$2,776,4181.93%Aug 2023Nov 20273.6 years
Including impact of derivative instruments:
Fixed-rate debt$6,021,7152.08%
Hedged floating-rate debt$1,617,3553.46%
Total fixed and hedged debt$7,639,0702.37%
Unhedged floating-rate debt$1,159,0631.93%
Total$8,798,1332.31%

15


TRITON INTERNATIONAL LIMITED
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

On January 19, 2022, the Company completed a $600.0 million 3.25% senior notes offering with a maturity date of March 15, 2032.

On February 1, 2022, the Company exercised an early buyout option and paid $14.9 million of its remaining finance lease obligations.

Asset-Backed Securitization Term Notes

Under the Company's ABS facilities, indirect wholly-owned subsidiaries of the Company issue ABS notes. These subsidiaries are intended to be bankruptcy remote so that such assets are not available to creditors of the Company or its affiliates until and unless the related secured borrowings have been fully discharged. These transactions do not meet accounting requirements for sales treatment and are recorded as secured borrowings.

The Company’s borrowings under the ABS facilities amortize in monthly installments, typically in level payments over five or more years. These facilities provide for an advance rate against the net book values of designated eligible equipment. The net book values for purposes of calculating eligible equipment is determined according to the related debt agreement and may be different than those calculated per U.S. GAAP. The Company is required to maintain restricted cash balances on deposit in designated bank accounts equal to three to nine months of interest expense depending on the terms of each facility.

Asset-Backed Securitization Warehouse

Under the Company’s ABS warehouse facility, an indirect wholly-owned subsidiary of the Company issues ABS notes. This subsidiary is intended to be bankruptcy remote so that such assets are not available to creditors of the Company or its affiliates until and unless the related secured borrowings have been fully discharged. These transactions do not meet accounting requirements for sales treatment and are recorded as secured borrowings.

The Company's ABS warehouse facility has a borrowing capacity of $1,125.0 million that is available on a revolving basis until November 13, 2023, paying interest at the London Interbank Offered Rate ("LIBOR") plus 1.85% after which any borrowings will convert to term notes with a maturity date of November 15, 2027, paying interest at LIBOR plus 2.85%.

During the revolving period, the borrowing capacity under this facility is determined by applying an advance rate against the net book values of designated eligible equipment. The net book values for purposes of calculating eligible equipment are determined according to the related debt agreement and may be different than those calculated per U.S. GAAP. The Company is required to maintain restricted cash balances on deposit in designated bank accounts equal to three months of interest expense.

Senior Notes

The Company’s senior notes are unsecured and have maturities ranging from 1 - 10 years and interest payments due semi-annually. The senior notes are pre-payable (in whole or in part) at the Company's option at any time prior to the maturity date, subject to certain provisions in the senior note agreements, including the payment of a make-whole premium in respect to such prepayment.

Term Loan Facility

The Company's term loan facility has a maturity date of May 27, 2026, which amortizes in quarterly installments. This facility is subject to covenants customary for unsecured financings of this type, primarily financial covenants that require us to maintain a maximum ratio of unencumbered assets to certain financial indebtedness.

Revolving Credit Facility

The revolving credit facility has a maturity date of October 14, 2026, and has a maximum borrowing capacity of $2,000.0 million. This facility is subject to covenants customary for unsecured financings of this type, primarily financial covenants that require us to maintain a maximum ratio of unencumbered assets to certain financial indebtedness.

16


TRITON INTERNATIONAL LIMITED
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 8—Derivative Instruments

Interest Rate Swaps / Caps

The Company enters into derivative agreements to manage interest rate risk exposure. Interest rate swap agreements are utilized to limit the Company's exposure to interest rate risk by converting a portion of its floating-rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense. Interest rate swaps involve the receipt of floating-rate amounts in exchange for fixed-rate interest payments over the lives of the agreements without an exchange of the underlying principal amounts. The Company also utilizes interest rate cap agreements to manage the Company's exposure to rising interest rates by placing a ceiling on the rate that will be paid under certain floating-rate debt agreements.

The counterparties to these agreements are highly rated financial institutions. In the unlikely event that the counterparties fail to meet the terms of these agreements, the Company's exposure is limited to the interest rate differential on the notional amount at each monthly settlement period over the life of the agreements. The Company does not anticipate any non-performance by the counterparties.

Certain assets of the Company's subsidiaries are pledged as collateral for various ABS facilities and the amounts payable under certain derivative agreements. Additionally, the Company may be required to post cash collateral on certain derivative agreements if the fair value of these contracts represents a liability. Any amounts of cash collateral posted are included in Other assets on the consolidated balance sheet and are presented in operating activities of the consolidated statements of cash flows. As of March 31, 2022, the Company posted cash collateral of $9.4 million related to interest rate swap contracts.

During the first quarter of 2022, the company terminated the following interest rate swaps:
Derivative InstrumentDate TerminatedNotional AmountFunds Received (Paid)
Interest rate swapJanuary 11, 2022$150.0 million$6.0 million
Interest rate swapJanuary 11, 2022$150.0 million$6.1 million
As of March 31, 2022, the Company had interest rate swap and cap agreements in place to fix or limit the floating interest rates on a portion of the borrowings under its debt facilities summarized below:
DerivativesNotional AmountWeighted Average
Fixed Leg (Pay) Interest Rate
Cap RateWeighted Average
Remaining Term
Interest Rate Swap(1)
$1,617.4 Million2.04%n/a4.0 years
Interest Rate Cap$400.0 Millionn/a5.5%1.7 years
(1)     Excludes certain interest rate swaps with an effective date in a future period ("forward starting swaps"). Including these instruments will increase total notional amount by $350.0 million and increase the weighted average remaining term to 5.0 years.

Within the next twelve months, we expect to reclassify $0.2 million of net unrealized gains related to interest rate swap and cap agreements from accumulated other comprehensive income (loss) into earnings.

The following table summarizes the impact of derivative instruments on the consolidated statements of operations and the consolidated statements of comprehensive income on a pretax basis (in thousands):
  Three Months Ended March 31,
Financial statement caption20222021
Non-Designated Derivative Instruments
Unrealized (gains) lossesUnrealized (gain) loss on derivative instruments, net$(439)$ 
Designated Derivative Instruments
Realized (gains) lossesInterest and debt (income) expense$6,770 $7,570 
Unrealized (gains) lossesComprehensive (income) loss$(79,563)$(65,408)

Fair Value of Derivative Instruments

The Company has elected to use the income approach to value its interest rate swap and cap agreements, using Level 2 market expectations at the measurement date and standard valuation techniques to convert future values to a single discounted present value. The Level 2 inputs for the interest rate swap and cap valuations are inputs other than quoted prices that are
17


TRITON INTERNATIONAL LIMITED
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

observable for the asset or liability (specifically LIBOR and swap rates and credit risk at commonly quoted intervals). In response to the expected phase out of LIBOR, the Company continues to work with its counterparties to identify an alternative reference rate. Substantially all of the Company's debt agreements already include transition language, and the Company also adopted various practical expedients which will facilitate the transition.

The Company presents the fair value of derivative financial instruments on a gross basis as a separate line item on the consolidated balance sheet. As of March 31, 2022 and December 31, 2021, the Company has no material non-designated instruments.

Note 9—Segment and Geographic Information

Segment Information

The Company operates its business in one industry, intermodal transportation equipment, and has