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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, 2021
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
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 23, 2021, there were 67,372,008 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.
Forward-looking statements in this report are subject to a number of known and unknown risks and uncertainties that could cause our actual results, performance or achievements to differ materially from those described in the forward-looking statements, including, but not limited to: 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; customers' decisions to buy rather than lease containers; 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; difficulties stemming from the international nature of Triton's businesses; decreases in demand for international trade; disruption to Triton's operations resulting from 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 Triton's operations from failure of, or attacks on, Triton's information technology systems; disruption to Triton's operations as a result of natural disasters; compliance with laws and regulations related to economic and trade sanctions, security, anti-terrorism, environmental protection and corruption; ability to obtain sufficient capital to support growth; restrictions imposed by the terms of Triton's debt agreements; changes in the tax laws in Bermuda, the United States and other countries; and other risks and uncertainties described in the section entitled "Risk Factors" in our Annual Report on Form 10-K, filed with the SEC on February 16, 2021 (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, 2021December 31,
2020
ASSETS:  
Leasing equipment, net of accumulated depreciation of $3,497,805 and $3,370,652
$9,198,780 $8,630,696 
Net investment in finance leases271,347 282,131 
Equipment held for sale57,568 67,311 
Revenue earning assets9,527,695 8,980,138 
Cash and cash equivalents233,064 61,512 
Restricted cash153,272 90,484 
Accounts receivable, net of allowances of $1,275 and $2,192
234,682 226,090 
Goodwill236,665 236,665 
Lease intangibles, net of accumulated amortization of $269,355 and $264,791
29,102 33,666 
Other assets68,919 83,969 
Fair value of derivative instruments7,578 9 
Total assets$10,490,977 $9,712,533 
LIABILITIES AND SHAREHOLDERS' EQUITY:  
Equipment purchases payable$342,357 $191,777 
Fair value of derivative instruments 68,545 128,872 
Accounts payable and other accrued expenses96,989 95,235 
Net deferred income tax liability342,071 327,431 
Debt, net of unamortized costs of $53,446 and $42,747
6,916,697 6,403,270 
Total liabilities7,766,659 7,146,585 
Shareholders' equity:  
Preferred shares, $0.01 par value, at liquidation preference
555,000 555,000 
Common shares, $0.01 par value, 270,000,000 shares authorized, 81,273,334 and 81,151,723 shares issued, respectively
813 812 
Undesignated shares, $0.01 par value, 7,800,000 shares authorized, no shares issued and outstanding
  
Treasury shares, at cost, 13,901,326 shares
(436,822)(436,822)
Additional paid-in capital902,891 905,323 
Accumulated earnings1,765,498 1,674,670 
Accumulated other comprehensive income (loss)(63,062)(133,035)
Total shareholders' equity2,724,318 2,565,948 
Total liabilities and shareholders' equity$10,490,977 $9,712,533 
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,
20212020
Leasing revenues:  
Operating leases$339,794 $312,804 
Finance leases6,949 8,664 
Total leasing revenues346,743 321,468 
Equipment trading revenues25,945 15,380 
Equipment trading expenses(17,804)(13,447)
Trading margin8,141 1,933 
Net gain on sale of leasing equipment21,967 4,077 
Operating expenses:
Depreciation and amortization143,307 132,695 
Direct operating expenses9,370 23,248 
Administrative expenses20,921 19,225 
Provision (reversal) for doubtful accounts(2,464)4,279 
Total operating expenses171,134 179,447 
Operating income (loss)205,717 148,031 
Other expenses:
Interest and debt expense54,623 69,002 
Debt termination expense 31 
Other (income) expense, net(481)(3,584)
Total other expenses54,142 65,449 
Income (loss) before income taxes151,575 82,582 
Income tax expense (benefit)11,737 5,546 
Net income (loss)$139,838 $77,036 
Less: dividend on preferred shares10,513 9,825 
Net income (loss) attributable to common shareholders$129,325 $67,211 
Net income per common share—Basic$1.93 $0.94 
Net income per common share—Diluted$1.92 $0.94 
Cash dividends paid per common share$0.57 $0.52 
Weighted average number of common shares outstanding—Basic66,935 71,596 
Dilutive restricted shares282 202 
Weighted average number of common shares outstanding—Diluted67,217 71,798 
   
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,
 20212020
Net income (loss)$139,838 $77,036 
Other comprehensive income (loss), net of tax:  
Change in derivative instruments designated as cash flow hedges62,850 (120,140)
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges7,102 1,411 
Foreign currency translation adjustment21 (262)
Other comprehensive income (loss), net of tax69,973 (118,991)
Comprehensive income209,811 (41,955)
Less:
Dividend on preferred shares10,513 9,825 
Comprehensive income attributable to common shareholders$199,298 $(51,780)
Tax (benefit) provision on change in derivative instruments designated as cash flow hedges$2,558 $(9,474)
Tax (benefit) provision on reclassification of (gain) loss on derivative instruments designated as cash flow hedges$468 $(152)
   

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, 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 

`Preferred SharesCommon SharesTreasury SharesAdd'l Paid in CapitalAccumulated EarningsAccumulated Other Comprehensive IncomeTotal Equity
SharesAmountSharesAmountSharesAmount
Balance as of December 31, 201916,200,000 $405,000 80,979,833 $810 8,771,345 $(278,510)$902,725 $1,533,845 $(31,633)$2,532,237 
Issuance of preferred shares, net of offering expenses6,000,000 150,000 — — — — (5,171)— — 144,829 
Share-based compensation— — 184,644 2 — — 1,603 — — 1,605 
Treasury shares acquired— — — — 1,365,620 (37,488)— — — (37,488)
Share repurchase to settle shareholder tax obligations— — (53,609)(1)— — (2,155)— — (2,156)
Net income (loss)— — — — — — — 77,036 — 77,036 
Other comprehensive income (loss)— — — — — — —  (118,991)(118,991)
Common shares dividend declared— — — — — — — (37,427)— (37,427)
Preferred shares dividend declared— — — — — — — (9,395)— (9,395)
Balance as of March 31, 202022,200,000 $555,000 81,110,868 $811 10,136,965 $(315,998)$897,002 $1,564,059 $(150,624)$2,550,250 
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,
 20212020
Cash flows from operating activities:  
Net income (loss)$139,838 $77,036 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:  
Depreciation and amortization143,307 132,695 
Amortization of deferred debt cost and other debt related amortization1,142 3,595 
Lease related amortization4,857 7,054 
Share-based compensation expense1,715 1,605 
Net (gain) loss on sale of leasing equipment(21,967)(4,077)
Unrealized (gain) loss on derivative instruments 297 
Debt termination expense 31 
Deferred income taxes11,615 5,505 
Changes in operating assets and liabilities:
Accounts receivable(10,828)(3,775)
Accounts payable and other accrued expenses1,886 (15,111)
Net equipment sold (purchased) for resale activity1,579 1,435 
Cash received (paid) for settlement of interest rate swaps5,558  
Cash collections on finance lease receivables, net of income earned12,866 15,466 
Other assets9,420 (23,796)
Net cash provided by (used in) operating activities300,988 197,960 
Cash flows from investing activities:  
Purchases of leasing equipment and investments in finance leases(579,211)(62,406)
Proceeds from sale of equipment, net of selling costs53,512 49,498 
Other15 (216)
Net cash provided by (used in) investing activities(525,684)(13,124)
Cash flows from financing activities:  
Issuance of preferred shares, net of underwriting discount 145,275 
Purchases of treasury shares (34,357)
Redemption of common shares for withholding taxes(4,146)(2,156)
Debt issuance costs(13,803) 
Borrowings under debt facilities1,504,850 530,000 
Payments under debt facilities and finance lease obligations(979,199)(425,073)
Dividends paid on preferred shares(10,513)(9,395)
Dividends paid on common shares(38,153)(37,110)
Other  (410)
Net cash provided by (used in) financing activities459,036 166,774 
Net increase (decrease) in cash, cash equivalents and restricted cash$234,340 $351,610 
Cash, cash equivalents and restricted cash, beginning of period151,996 168,972 
Cash, cash equivalents and restricted cash, end of period$386,336 $520,582 
Supplemental disclosures:
Interest paid$42,133 $53,795 
Income taxes paid (refunded)$155 $139 
Right-of-use asset for leased property$ $ 
Supplemental non-cash investing activities:  
Equipment purchases payable$342,357 $29,109 
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, 2021; the consolidated statements of operations, the consolidated statements of comprehensive income, and the consolidated statements of shareholders' equity and the consolidated statements of cash flows for the three months ended March 31, 2021 and 2020, are unaudited. The consolidated balance sheet as of December 31, 2020, 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, 2021 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2021 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, 2020 included in the Company's Annual Report on Form 10-K which was filed with the SEC on February 16, 2021. 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 21%, 14%, and 10%, respectively, of the Company's lease billings during the three months ended March 31, 2021.


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.


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. The following table summarizes the portion of equipment held for sale in the consolidated balance sheet that have been impaired and written down to fair value less cost to sell (in thousands):
March 31, 2021December 31, 2020
Equipment held for sale$1,868 $4,001 

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,
20212020
Impairment (loss) reversal on equipment held for sale$5 $(1,490)
Gain (loss) on sale of equipment, net of selling costs21,962 5,567 
Net gain on sale of leasing equipment$21,967 $4,077 

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, 2021 (in thousands):
Years ending December 31,Total Intangible Assets
2021$11,985 
2022$10,497 
2023$4,657 
2024$1,963 
Total$29,102 

Amortization expense related to intangible assets was $4.6 million and $6.2 million for the three months ended March 31, 2021, and 2020, 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 $1.7 million and $1.6 million for the three months ended March 31, 2021 and 2020, respectively. Share-based compensation expense includes charges for performance-based shares and units that are deemed probable to vest.

As of March 31, 2021, the total unrecognized compensation expense related to non-vested restricted share awards and units was approximately $15.6 million, which is expected to be recognized on a straight-line basis through 2024.

10


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

During the three months ended March 31, 2021, the Company issued 207,077 restricted shares, and canceled 85,466 vested shares to settle payroll taxes on behalf of employees. Additional shares may be issued based upon the satisfaction of certain performance criteria.

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.

The Company did not repurchase any shares during the three months ended March 31, 2021 and currently has $102.1 million available under the share repurchase program. 

Preferred Shares

The following table summarizes the Company's preferred share issuances (the "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 
$555,000 22,200,000 
(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, which is equal to the issue price, of $25.00 per share 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 agreement, 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, holders of preferred shares may have the right to convert their preferred shares into common shares.

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, 2021 and 2020 on its issued and outstanding Series (in millions except for the per-share amounts):
Series ASeries BSeries CSeries D
Record DatePayment DateAggregate Payment
Per Share
Payment(1)
Aggregate PaymentPer Share
Payment
Aggregate Payment
Per Share
Payment(1)
Aggregate Payment
Per Share
Payment(1)
March 8, 2021March 15, 2021$1.8$0.53$2.9$0.50$3.2$0.46$2.6$0.43
March 9, 2020March 16, 2020$1.8$0.53$2.9$0.50$3.2$0.46$1.5$0.24
(1)     Rounded to the nearest whole cent.

As of March 31, 2021, the Company had cumulative unpaid preferred dividends of $1.8 million.

Common Share Dividends

The Company paid the following quarterly dividends during the three months ended March 31, 2021 and 2020 on its issued common shares:
Record DatePayment DateAggregate PaymentPer Share Payment
March 12, 2021March 26, 2021$38.2 Million$0.57
March 13, 2020March 27, 2020$37.1 Million$0.52

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, 2021 and 2020 (in thousands):
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)
Cash Flow
Hedges
Foreign
Currency
Translation
Accumulated Other Comprehensive (Loss) Income
Balance as of December 31, 2019$(27,096)$(4,537)$(31,633)
Change in derivative instruments designated as cash flow hedges(1)
(120,140) (120,140)
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges(1)
1,411  1,411 
Foreign currency translation adjustment (262)(262)
Balance as of March 31, 2020$(145,825)$(4,799)$(150,624)
(1)    Refer to Note 8 - "Derivative Instruments" for reclassification impact on the Consolidated Statements of Operations



12


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


Note 6—Leases

Lessee

The Company leases 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, 2021, the weighted average implicit rate was 3.84% and the weighted average remaining lease term was 2.6 years.

The following table summarizes the impact of the Company's leases in its financial statements (in thousands):
Balance SheetFinancial statement captionMarch 31, 2021December 31, 2020
Right-of-use asset - operatingOther assets$4,750 $5,062 
Lease liability - operatingAccounts payable and other accrued expenses$5,697 $6,088 
Three Months Ended March 31,
Income StatementFinancial statement caption20212020
Operating lease cost(1)
Administrative expenses$722 $759 
(1)     Includes short-term leases that are immaterial.

Cash paid for amounts of lease liabilities included in operating cash flows was $0.7 million and $0.8 million for the three months ended March 31, 2021 and March 31, 2020, respectively.

Lessor
The following table summarizes the components of the net investment in finance leases (in thousands):
March 31, 2021December 31, 2020
Future minimum lease payment receivable(1)
$338,471 $355,755 
Estimated residual receivable(2)
53,789 53,892 
Gross finance lease receivables(3)
392,260 409,647 
Unearned income(4)
(120,913)(127,516)
Net investment in finance leases(5)
$271,347 $282,131 
(1)     There were no executory costs included in gross finance lease receivables as of March 31, 2021 and December 31, 2020.
(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, 2021 and December 31, 2020.
(5)    One major customer represented 77% and 75% of the Company's finance lease portfolio as of March 31, 2021 and December 31, 2020, respectively. 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, 2021, the Company does not have an allowance on its gross finance lease receivables and does not have any material past due balances.

13


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):
Contractual Weighted Avg Interest Rate(1)
Maturity Range(1)
March 31, 2021December 31, 2020
FromTo
Institutional notes4.59%Jun 2021Jun 2029$1,611,371 $1,642,314 
Asset-backed securitization term notes1.98%Aug 2023Feb 20314,076,059 2,920,807 
Term loan facility1.61%Nov 2023Nov 2023820,000 840,000 
Asset-backed securitization warehouse1.96%Nov 2027Nov 202720,000 264,000 
Revolving credit facilities1.76%Sep 2023Jul 2024426,400 760,500 
Finance lease obligations4.93%Feb 2024Feb 202416,746 17,304 
   Total debt outstanding6,970,576 6,444,925 
Unamortized debt costs(53,446)(42,747)
Unamortized debt premiums & discounts(1,941)(599)
Unamortized fair value debt adjustment1,508 1,691 
   Debt, net of unamortized costs$6,916,697 $6,403,270 
(1)     Data as of March 31, 2021.

The fair value of total debt outstanding was $7,034.8 million and $6,536.5 million as of March 31, 2021 and December 31, 2020, respectively, and was measured using Level 2 inputs.

As of March 31, 2021, the maximum borrowing levels for the Asset-backed Securitization ("ABS") warehouse and the revolving credit facilities are $1,125.0 million and $1,560.0 million, respectively. These facilities are governed by borrowing bases that limit borrowing capacity to an established percentage of relevant assets. As of March 31, 2021, the availability under these credit facilities without adding additional container assets to the borrowing base was approximately $828.8 million.

The Company is subject to certain financial covenants under its debt agreements. The agreements remain the obligations of the respective subsidiaries, and all related debt covenants are calculated at the subsidiary level. As of March 31, 2021 and December 31, 2020, 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, 2021 (in thousands):
Balance OutstandingContractual Weighted Avg Interest RateMaturity RangeWeighted Avg Remaining Term
FromTo
Excluding impact of derivative instruments:
Fixed-rate debt$5,057,5122.86%Jun 2021Feb 20314.4 years
Floating-rate debt$1,913,0641.67%Aug 2023Nov 20272.6 years
Including impact of derivative instruments:
Fixed-rate debt$5,057,5122.86%
Hedged floating-rate debt$1,697,6003.57%
Total fixed and hedged debt6,755,1123.04%
Unhedged floating-rate debt215,4641.67%
Total$6,970,5763.00%


14


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

The Company issued the following ABS fixed rate series during the three months ended March 31, 2021:
DateTotal OfferingContractual Weighted Avg Interest RateExpected Maturity
February 3, 2021$502.9 Million1.69%Feb 2031
March 17, 2021$725.0 Million1.89%Dec 2030

Institutional Notes

In accordance with the Company's institutional note agreements, interest payments are due semi-annually. Institutional note maturities typically range from 7 - 12 years, with level principal payments due annually following an interest-only period. The institutional notes are pre-payable (in whole or in part) at the Company's option at any time, subject to certain provisions in the note agreements, including the payment of a make-whole premium in respect to such prepayment. These facilities provide for an advance rate against the net book values of designated eligible equipment.

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.

Term Loan Facility

The term loan facility amortizes in quarterly installments. This facility provides for an advance rate against the net book values of designated eligible equipment.

Asset-Backed Securitization Warehouse

Under the Company’s asset-backed 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 asset-backed 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 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.

Revolving Credit Facilities

The revolving credit facilities have a maximum borrowing capacity of $1,560.0 million. These facilities provide for an advance rate against the net book values of designated eligible equipment.




15


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

Finance Lease Obligations

Certain containers are leased with a financial institution. The lease is accounted for as a finance lease, with interest expense recognized on a level yield basis over the period preceding early purchase options, which is five to seven years from the transaction date.

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 credit facilities and the amounts payable under certain agreements.

In conjunction with the issuance of ABS notes, the Company canceled the following interest rate swaps that were in place to hedge the impact of interest rate changes on fixed-rate debt issuances:
Derivative InstrumentDate CanceledNotional AmountFunds Received
Interest rate swapJanuary 25, 2021$150.0 million$0.3 million
Interest rate swapJanuary 27, 2021$150.0 million$0.3 million
Interest rate swapFebruary 19, 2021$150.0 million$2.4 million
Interest rate swapFebruary 19, 2021$150.0 million$2.4 million

As of March 31, 2021, 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)
$1,697.6 Million2.02%n/a4.8 years
Interest Rate Cap$200.0 Millionn/a5.5%2.7 years
(1)     The impact of forward starting swaps will increase total notional amount by $350.0 million and increase the weighted average remaining term to 5.8 years.

Unrealized losses of $28.6 million related to interest rate swap and cap agreements included in accumulated other comprehensive income (loss) are expected to be recognized in Interest and debt expense over the next twelve months.

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 caption20212020
Non-Designated Derivative Instruments
Realized (gains) lossesOther (income) expense, net$ $(235)
Unrealized (gains) lossesOther (income) expense, net$ $297 
Designated Derivative Instruments
Realized (gains) lossesInterest and debt (income) expense$7,570 $1,259 
Unrealized (gains) lossesComprehensive (income) loss$(65,408)$129,614 
16


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


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 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, 2021 and December 31, 2020, the Company has no material non-designated instruments.

Any amounts of cash collateral posted related to derivative instruments 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, 2021, the Company has cash collateral of $28.4 million related to interest rate swap contracts.

Note 9—Segment and Geographic Information

Segment Information

The Company operates its business in one industry, intermodal transportation equipment, and has two operating segments which also represent its reporting segments:
Equipment leasing - the Company owns, leases and ultimately disposes of containers and chassis from its lease fleet.
Equipment trading - the Company purchases containers from shipping line customers, and other sellers of containers, and resells these containers to container retailers and users of containers for storage or one-way shipment. Included in the equipment trading segment revenues are leasing revenues from equipment purchased for resale that is currently on lease until the containers are dropped off.

These operating segments were determined based on the chief operating decision maker's review and resource allocation of the products and services offered.

The following tables summarizes our segment information and the consolidated totals reported (in thousands):
 Three Months Ended March 31,
 20212020
 Equipment
Leasing
Equipment
Trading
TotalsEquipment
Leasing
Equipment
Trading
Totals
Total leasing revenues$343,805 $2,938 $346,743 $321,037 $431 $321,468 
Trading margin 8,141 8,141  1,933 1,933 
Net gain on sale of leasing equipment21,967  21,967 4,077  4,077 
Depreciation and amortization expense143,137 170 143,307 132,518 177 132,695 
Interest and debt expense54,221 402 54,623 68,699 303 69,002 
Segment income (loss) before income taxes(1)
142,189 9,386 151,575 81,517 1,393 82,910 
Purchases of leasing equipment and investments in finance leases(2)
$579,211 $ $579,211 $62,406 $ $62,406 

(1) Segment income before income taxes excludes unrealized gains or losses on derivative instruments and debt termination expense. The Company recorded an unrealized loss on derivative instruments of $0.3 million for the three months ended March 31, 2020, included in other (income)/expense, net, and an immaterial amount for debt termination expense for the three months ended March 31, 2020.
(2)     Represents cash disbursements for purchases of leasing equipment and investments in finance lease as reflected in the consolidated statements of cash flows for the periods indicated, but excludes cash flows associated with the purchase of equipment held for resale.
17


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

March 31, 2021December 31, 2020
Equipment LeasingEquipment TradingTotalsEquipment LeasingEquipment TradingTotals
Equipment held for sale$30,415 $27,153 $57,568 $43,275 $24,036 $67,311 
Goodwill220,864 15,801 236,665 220,864 15,801 236,665 
Total assets$10,390,561 $100,416 $10,490,977 $9,612,251 $100,282 $9,712,533 

There are no intercompany revenues or expenses between segments. Certain administrative expenses have been allocated between segments based on an estimate of services provided to each segment. A portion of the Company's equipment purchased for resale in the equipment trading segment may be leased for a period of time and is reflected as leasing equipment as opposed to equipment held for sale and the cash flows associated with these transactions are reflected as purchases of leasing equipment and proceeds from the sale of equipment in investing activities in the Company's consolidated statements of cash flows.

Geographic Segment Information

The Company generates the majority of its leasing revenues from international containers which are deployed by its customers in a wide variety of global trade routes. The majority of the Company's leasing related revenue is denominated in U.S. dollars.

The following table summarizes the geographic allocation of equipment leasing revenues for the three months ended March 31, 2021 and 2020 based on customers' primary domicile (in thousands):
 Three Months Ended March 31,
 20212020
Total equipment leasing revenues:  
Asia$123,894 $120,806 
Europe186,373 164,263 
Americas24,713 26,261 
Bermuda575 443 
Other International11,188 9,695 
Total$346,743 $321,468 

Since the majority of the Company's containers are used internationally, where no one 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.

The following table summarizes the geographic allocation of equipment trading revenues for the three months ended March 31, 2021 and 2020 based on the location of the sale (in thousands):
 Three Months Ended March 31,
 20212020
Total equipment trading revenues:  
Asia$7,459 $1,532 
Europe7,122 4,952 
Americas8,541 6,595 
Bermuda  
Other International2,823 2,301 
Total$25,945 $15,380 

18


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

Note 10—Commitments and Contingencies

Container Equipment Purchase Commitments

At March 31, 2021, the Company had commitments to purchase equipment in the amount of $1,398.6 million payable in 2021.

Contingencies

The Company is party to various pending or threatened legal or regulatory proceedings arising in the ordinary course of its business. Based upon information presently available, the Company does not expect any liabilities arising from these matters to have a material effect on the consolidated financial position, results of operations or cash flows of the Company.

Note 11—Income Taxes

The Company's effective tax rates were 7.7% and 6.7% for the three months ended March 31, 2021 and 2020, respectively. The Company has computed the provision for income taxes based on the estimated annual effective tax rate and the application of discrete items, if any, in the applicable period. The increase in the effective tax rate in 2021 compared to the same period of 2020 was primarily the result of an increased proportion of the Company's income generated in higher tax jurisdictions.

Note 12—Related Party Transactions

The Company holds a 50% interest in TriStar Container Services (Asia) Private Limited ("TriStar"), which is primarily engaged in the selling and leasing of container equipment in the domestic and short sea markets in India.  The Company's equity investment in TriStar is included in Other assets on the consolidated balance sheet. The Company received payments on finance leases with TriStar of $0.5 million for both of the three months ended March 31, 2021 and March 31, 2020. The Company has a direct finance lease balance with TriStar of $10.0 million and $10.3 million as of March 31, 2021 and December 31, 2020, respectively.

Note 13—Subsequent Events

On April 15, 2021, the Company completed a $600.0 million senior secured investment grade bond offering. The bond offering has a contractual interest rate of 2.05% and expected maturity date of April 15, 2026.

On April 27, 2021, the Company's Board of Directors approved and declared a quarterly cash dividend of $0.57 per share on its issued and outstanding common shares, payable on June 24, 2021 to holders of record at the close of business on June 10, 2021.

On April 27, 2021, the Company's Board of Directors also approved and declared a cash dividend on its issued and outstanding preferred shares, payable on June 15, 2021 to holders of record at the close of business on June 8, 2021 as follows:
Preferred Share OfferingDividend RateDividend Per Share
Series A8.500%$0.5312500
Series B8.000%$0.5000000
Series C7.375%$0.4609375
Series D6.875%$0.4296875

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ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The statements in this discussion regarding industry outlook, our expectations regarding our future performance, liquidity and capital resources and other non-historical statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described under "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" as discussed in our Annual Report on Form 10-K filed for the fiscal year ended December 31, 2020 with the SEC on February 16, 2021 (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, and in other documents we file with the SEC from time to time. Our actual results may differ materially from those contained in or implied by any forward-looking statements.

Our Company

Triton International Limited ("Triton", "we", "our" or the "Company") is the world's largest lessor of intermodal containers. Intermodal containers are large, standardized steel boxes used to transport freight by ship, rail or truck. Because of the handling efficiencies they provide, intermodal containers are the primary means by which many goods and materials are shipped internationally. We also lease chassis, which are used for the transportation of containers.

We operate our business in one industry, intermodal transportation equipment, and have two business segments, which also represent our reporting segments:
Equipment leasing - we own, lease and ultimately dispose of containers and chassis from our lease fleet.
Equipment trading - we purchase containers from shipping line customers, and other sellers of containers, and resell these containers to container retailers and users of containers for storage or one-way shipment.

Operations

Our consolidated operations include the acquisition, leasing, re-leasing and subsequent sale of multiple types of intermodal containers and chassis. As of March 31, 2021, our total fleet consisted of 3.8 million containers and chassis, representing 6.5 million twenty-foot equivalent units ("TEU") or 7.3 million cost equivalent units ("CEU"). We have an extensive global presence, offering leasing services through 19 offices and 3 independent agencies located in 16 countries and 411 third-party owned and operated depot facilities in 46 countries as of March 31, 2021. Our primary customers include the world's largest container shipping lines. For the three months ended March 31, 2021, our twenty largest customers accounted for 86% of our lease billings, our five largest customers accounted for 60% of our lease billings, and our three largest customers accounted for 21%, 14%, and 10% of our lease billings.

The most important driver of profitability in our business is the extent to which leasing revenues, which are driven by our owned equipment fleet size, utilization and average lease rates, exceed our ownership and operating costs. Our profitability is also driven by the gains or losses we realize on the sale of used containers in the ordinary course of our business.

We lease five types of equipment: (1) dry containers, which are used for general cargo such as manufactured component parts, consumer staples, electronics and apparel, (2) refrigerated containers, which are used for perishable items such as fresh and frozen foods, (3) special containers, which are used for heavy and over-sized cargo such as marble slabs, building products and machinery, (4) tank containers, which are used to transport bulk liquid products such as chemicals, and (5) chassis, which are used for the transportation of containers on land. Our in-house equipment sales group manages the sale process for our used containers and chassis from our equipment leasing fleet and buys and sells used and new containers and chassis acquired from third parties.


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The following tables summarize our equipment fleet as of March 31, 2021, December 31, 2020 and March 31, 2020 indicated in units, TEU and CEU. CEU and TEU are standard industry measures of fleet size and are used to measure the quantity of containers that make up our revenue earning assets:
 Equipment Fleet in UnitsEquipment Fleet in TEU
 March 31, 2021December 31, 2020March 31, 2020March 31, 2021December 31, 2020March 31, 2020
Dry3,417,293 3,295,908 3,239,306 5,711,032 5,466,421 5,324,756 
Refrigerated232,550 227,519 225,026 450,087 439,956 434,263 
Special94,266 93,885 93,743 171,781 170,792 170,225 
Tank11,339 11,312 12,469 11,339 11,312 12,469 
Chassis24,078 24,781 24,319 43,858 45,188 44,828 
Equipment leasing fleet3,779,526 3,653,405 3,594,863 6,388,097 6,133,669 5,986,541 
Equipment trading fleet60,242 64,243 17,549 93,514 98,991 26,185 
Total3,839,768 3,717,648 3,612,412 6,481,611 6,232,660 6,012,726 
 
Equipment Fleet in CEU (1)
 March 31, 2021December 31, 2020March 31, 2020
Operating leases6,892,129 6,649,350 6,474,701 
Finance leases297,168 295,784 338,242 
Equipment trading fleet92,570 98,420 35,632 
Total7,281,867 7,043,554 6,848,575 
(1)In the equipment fleet tables above, we have included total fleet count information based on CEU. CEU is a ratio used to convert the actual number of containers in our fleet to a figure based on the relative purchase prices of our various equipment types to that of a 20-foot dry container. For example, the CEU ratio for a 40-foot high cube dry container is 1.70, and a 40-foot high cube refrigerated container is 7.50. These factors may differ slightly from CEU ratios used by others in the industry.

The following table summarizes the percentage of our equipment fleet in terms of units and CEU as of March 31, 2021:
Equipment TypePercentage of total fleet in unitsPercentage of total fleet in CEU
Dry88.9 %68.8 %
Refrigerated6.1 23.7 
Special2.5 3.3 
Tank0.3 1.2 
Chassis0.6 1.7 
Equipment leasing fleet98.4 98.7 
Equipment trading fleet1.6 1.3 
Total100.0 %100.0 %

We generally lease our equipment on a per diem basis to our customers under three types of leases:
Long-term leases typically have initial contractual terms ranging from three to eight or more years and provide us with stable cash flow and low transaction costs by requiring customers to maintain specific units on-hire for the duration of the lease term. Some of our containers, primarily used containers, are placed on lifecycle leases which keep the containers on-hire until the end of their useful life.
Finance leases are typically structured as full payout leases and provide for a predictable recurring revenue stream with the lowest cost to the customer as customers are generally required to retain the equipment for the duration of its useful life.
Service leases command a premium per diem rate in exchange for providing customers with greater operational flexibility by allowing non-scheduled pick-up and drop-off of units during the lease term.

We also have expired long-term leases whose fixed terms have ended but for which the related units remain on-hire and for which we continue to receive rental payments pursuant to the terms of the initial contract. Some leases have contractual terms that have features reflective of both long-term and service leases and we classify such leases as either long-term or service leases, depending upon which features we believe are predominant.
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The following table summarizes our lease portfolio by lease type, based on CEU on-hire as of March 31, 2021, December 31, 2020 and March 31, 2020:
Lease PortfolioMarch 31, 2021December 31, 2020March 31, 2020
Long-term leases74.7 %73.8 %71.1 %
Finance leases4.2 4.4 5.5 
Service leases6.4 7.2 7.7 
Expired long-term leases (units on-hire)14.7 14.6 15.7 
Total100.0 %100.0 %100.0 %

As of March 31, 2021, December 31, 2020 and March 31, 2020, our long-term and finance leases combined had an average remaining contractual term of approximately 51 months, 49 months, and 48 months, respectively, assuming no leases are renewed.

Market Overview and COVID-19

The COVID-19 pandemic continues to have a meaningful impact on global trade and our business. The outbreak of COVID-19 and the initial global economic and social lockdowns caused a sharp decrease in trade volume and pressured our operating and financial performance in the first half of 2020. However, the easing of the lockdowns during the second quarter of 2020 and a shift in consumer spending from services and experiences to goods drove a sharp rebound in global containerized trade volumes and container demand beginning in the second half of 2020. The increase in trade volumes coupled with logistical challenges that have slowed the global movement of containers has resulted in a worldwide shortage of containers that has continued into the first quarter of this year. This shortage has driven our fleet to near full utilization, and led to significant increases in new container prices, market leasing rates and used container disposal prices. We have also significantly increased our procurement of new containers. All of these factors have contributed to a sharp increase in our profitability over the prior year period.

Operating Performance

Our operating and financial performance in the first quarter of 2021 benefited from the very favorable market conditions that are being driven by strong global trade activity coupled with a limited availability of containers.

Fleet size. As of March 31, 2021, our revenue earning assets had a net book value of $9.5 billion, an increase of 8.4% from March 31, 2020 and 6.1% from December 31, 2020. This increase was primarily due to increased purchases of containers that began in the second half of 2020 and accelerated into 2021 in response to a surge in global containerized trade volumes and lease demand. Through April 23, 2021, we have purchased approximately $2.6 billion of new containers for delivery in 2021, of which $702.6 million were accepted in the first quarter. The vast majority of these containers have already been committed to leases. We expect our existing orders will translate to asset growth of close to 20% in 2021.

Utilization. Our average utilization was 99.1% for the quarter ended March 31, 2021, an increase of 3.7% compared to the first quarter of 2020 and an increase of 1.0% from the fourth quarter of 2020. Our utilization has increased steadily since the third quarter of 2020 due to a very high volume of container pick-ups and limited drop-off activity. As of April 23, 2021, our utilization was 99.4%.

The following table summarizes our equipment fleet utilization for the periods indicated below. Utilization is computed by dividing our total units on lease (in CEU) by the total units in our fleet (in CEU) excluding new units not yet leased and off-hire units designated for sale:
 Quarter Ended
 March 31, 2021December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
Average Utilization99.1 %98.1 %96.1 %95.0 %95.4 %
Ending Utilization99.3 %98.9 %97.4 %94.8 %95.3 %


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Average lease rates. Average lease rates for our dry container product line increased by 1.0% in the first quarter of 2021 compared to the first quarter of 2020, and increased by 1.9% from the fourth quarter of 2020. The increase in our average dry container lease rates was primarily driven by the sharp increase in new container prices and market lease rates in the fourth quarter of 2020 and the first quarter of 2021. Container manufacturers are currently quoting over $3,500 for 20' dry containers and market lease rates for new dry containers are currently significantly above the average dry container lease rates in our portfolio. We expect our average dry container lease rates will continue to increase if container prices and market lease rates remain at their current levels.

Average lease rates for our refrigerated container product line decreased by 4.8% in the first quarter of 2021 compared to the first quarter of 2020. We have been experiencing larger differences in lease rates for older refrigerated containers compared to rates on new equipment, and we expect our average lease rates for refrigerated containers will continue to gradually trend down. The average lease rates for special containers remained flat in the first quarter of 2021 compared to the first quarter of 2020.

Equipment disposals. Disposal gains were very high in the first quarter of 2021, reflecting exceptionally high used container selling prices. Our average used dry container sale price in the first quarter of 2021 increased 90.2% from the first quarter of 2020, and increased 52.1% from the fourth quarter of 2020. This increase in sale prices reflects the current worldwide shortage of containers and the large increase in new container prices. The benefit of the large increase in used dry container sale prices was partially offset by a substantial decrease in disposal volumes. Container drop-off volumes have been very low due to the strong demand and limited global availability of containers, and our used dry container sales volumes decreased by 47.2% compared to the first quarter of 2020 and by 54.6% compared to the fourth quarter of 2020. We expect our disposal volumes and related gains will decrease due to limited container drop-offs.

Liquidity and Capital Resources

Our principal sources of liquidity are cash flows provided by operating activities, proceeds from the sale of our leasing equipment, and borrowings under our credit facilities. Our principal uses of cash include capital expenditures, debt service, dividends, and share repurchases.

For the trailing twelve months ended March 31, 2021, cash provided by operating activities, together with the proceeds from the sale of our leasing equipment, was $1,305.9 million. In addition, as of March 31, 2021, we had $233.1 million of cash and cash equivalents and $2,238.6 million of maximum borrowing capacity under our current credit facilities.

As of March 31, 2021, our cash commitments in the next twelve months include $771.4 million of scheduled principal payments on our existing debt facilities and $1,741.0 million of committed but unpaid capital expenditures, primarily for the purchase of equipment.

We believe that cash provided by operating activities, existing cash, proceeds from the sale of our leasing equipment, and availability under our credit facilities will be sufficient to meet our obligations over the next twelve months.

Asset-backed Securitization ("ABS") Note Issuances

During the three months ended March 31, 2021, the Company issued $1.2 billion in ABS notes at a weighted average interest rate of 1.8%. The proceeds from these issuances were used to facilitate additional capital expenditures and investment in our fleet.

Share Repurchase Program

The Company did not repurchase any shares in the first quarter of 2021. Since the inception of the Company's share repurchase program in August 2018, we have purchased over 13.9 million shares, or 17.2% of our common shares.

Dividends

During the three months ended March 31, 2021 and 2020, the Company paid dividends on preferred shares of $10.5 million and $9.4 million, respectively, and paid dividends on common shares of $38.2 million and $37.1 million, respectively.

23


For additional information on the Share Repurchase Program and Dividends, please refer to Note 5 - “Other Equity Matters” in the Notes to the Unaudited Consolidated Financial Statements.

Debt Agreements

At March 31, 2021 our outstanding indebtedness was comprised of the following (amounts in millions):
March 31, 2021Maximum Borrowing Level
Institutional notes$1,611.4 $1,611.4 
Asset-backed securitization term notes4,076.1 4,076.1 
Term loan facility820.0 820.0 
Asset-backed securitization warehouse20.0 1,125.0 
Revolving credit facilities426.4 1,560.0 
Finance lease obligations16.7 16.7 
Total debt outstanding$6,970.6 $9,209.2 
Unamortized debt costs(53.5)— 
Unamortized debt premiums & discounts(1.9)— 
Unamortized fair value debt adjustment1.5 — 
Debt, net of unamortized costs$6,916.7 $9,209.2 

The maximum borrowing levels depicted in the table above may not reflect the actual availability under all of the credit facilities. Certain of these facilities are governed by borrowing bases that limit borrowing capacity to an established percentage of relevant assets. As of March 31, 2021, the availability under these credit facilities without adding additional container assets to the borrowing base was approximately $828.8 million.
As of March 31, 2021, we had a combined $6,755.1 million of total debt with fixed interest rates or floating interest rates that have been synthetically fixed through interest rate swap contracts, which accounts for 97% of total debt.

Pursuant to the terms of certain debt agreements, we are required to maintain certain amounts in restricted cash accounts. As of March 31, 2021, we had restricted cash of $153.3 million.

For additional information on our debt, please refer to Note 7 - "Debt" in the Notes to the Unaudited Consolidated Financial Statements.

Debt Covenants

We are subject to certain financial covenants related to leverage, interest coverage and net worth as defined in our debt agreements. The debt agreements are the obligations of our subsidiaries and all related debt covenants are calculated at the subsidiary level. Failure to comply with these covenants could result in a default under the related credit agreements and the acceleration of our outstanding debt if we were unable to obtain a waiver from the creditors. As of March 31, 2021, we were in compliance with all such covenants. The table below reflects the key debt covenants for the Company that cover the majority of our debt agreements:
TCILTAL
Financial CovenantCovenantActualCovenantActual
Fixed charge coverage ratioShall not be less than 1.25:12.99:1Shall not be less than 1.10:12.41:1
Minimum net worthShall not be less than $855 million$2,144.6 millionShall not be less than $500 million$987.8 million
Leverage ratioShall not exceed 4.0:12.19:1Shall not exceed 4.75:11.68:1


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Cash Flow

The following table sets forth certain cash flow information for the three months ended March 31, 2021 and 2020 (in thousands):
 Three Months Ended March 31,
 20212020
Net cash provided by (used in) operating activities$300,988 $197,960 
Net cash provided by (used in) investing activities$(525,684)$(13,124)
Net cash provided by (used in) financing activities$459,036 $166,774 

Operating Activities

Net cash provided by operating activities increased by $103.0 million to $301.0 million in the three months ended March 31, 2021 compared to $198.0 million in the same period in 2020. The significant increase was primarily due to an increase in profitability due to strong market conditions. Additionally, changes in working capital accounts were positive compared to the same period last year.

Investing Activities

Net cash used in investing activities increased by $512.6 million to $525.7 million in the three months ended March 31, 2021 compared to $13.1 million in the same period in 2020. The change was primarily due to a $516.8 million increase in leasing equipment purchases to support the strong container demand.

Financing Activities

Net cash provided by financing activities increased by $292.2 million to $459.0 million in the three months ended March 31, 2021, compared to $166.8 million in the same period in 2020. The increase was primarily due to a $420.7 million increase in net borrowings to finance substantial purchases of leasing equipment in 2021.

25


Results of Operations

The following table summarizes our comparative results of operations for the three months ended March 31, 2021 and March 31, 2020 (in thousands).
 Three Months Ended March 31,Variance
20212020
Leasing revenues:  
Operating leases$339,794 $312,804 $26,990 
Finance leases6,949 8,664 (1,715)
Total leasing revenues346,743 321,468 25,275 
Equipment trading revenues25,945 15,380 10,565 
Equipment trading expenses(17,804)(13,447)(4,357)
Trading margin8,141 1,933 6,208 
Net gain on sale of leasing equipment21,967 4,077 17,890 
Operating expenses:
Depreciation and amortization143,307 132,695 10,612 
Direct operating expenses9,370 23,248 (13,878)
Administrative expenses20,921 19,225 1,696 
Provision (reversal) for doubtful accounts(2,464)4,279 (6,743)
Total operating expenses171,134 179,447 (8,313)
Operating income (loss)205,717 148,031 57,686 
Other expenses:
Interest and debt expense54,623 69,002 (14,379)
Debt termination expense— 31 (31)
Other (income) expense, net(481)(3,584)3,103 
Total other expenses54,142 65,449 (11,307)
Income (loss) before income taxes151,575 82,582 68,993 
Income tax expense (benefit)11,737 5,546 6,191 
Net income (loss)$139,838 $77,036 $62,802 
Less: dividend on preferred shares10,513 9,825 688 
Net income (loss) attributable to common shareholders$129,325 $67,211 $62,114 
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Comparison of the three months ended March 31, 2021 and 2020

Leasing revenues.    Per diem revenue represents revenue earned under operating lease contracts. Fee and ancillary lease revenue represents fees billed for the pick-up and drop-off of containers in certain geographic locations and billings of certain reimbursable operating costs such as repair and handling expenses. Finance lease revenue represents interest income earned under finance lease contracts. The following table summarizes our leasing revenue for the periods indicated below (in thousands):
 Three Months Ended March 31,Variance
 20212020
Leasing revenues:  
Operating leases  
Per diem revenues$331,252 $298,486 $32,766 
Fee and ancillary revenues8,542 14,318 (5,776)
Total operating lease revenues339,794 312,804 26,990 
Finance leases6,949 8,664 (1,715)
Total leasing revenues$346,743 $321,468 $25,275 

Total leasing revenues were $346.7 million for the three months ended March 31, 2021, compared to $321.5 million in the same period in 2020, an increase of $25.2 million.

Per diem revenues were $331.3 million for the three months ended March 31, 2021 compared to $298.5 million in the same period in 2020, an increase of $32.8 million. The primary reasons for this increase are as follows:
$32.9 million increase due to an increase in average units on-hire; and
$1.6 million increase due to a decrease in lease intangible amortization; partially offset by
$1.7 million decrease primarily due to a decrease in average per diem rates for our refrigerated containers.

Fee and ancillary lease revenues were $8.5 million for the three months ended March 31, 2021 compared to $14.3 million in the same period in 2020, a decrease of $5.8 million, primarily due to lower drop-off activity.

Finance lease revenues were $6.9 million for the three months ended March 31, 2021 compared to $8.7 million in the same period in 2020, a decrease of $1.8 million, primarily due to the runoff of the existing portfolio.

Trading margin.    Trading margin was $8.1 million for the three months ended March 31, 2021 compared to $1.9 million in the same period in 2020, an increase of $6.2 million. The increase was due to increased per container selling margins due to a significant increase in used container selling prices.

Net gain on sale of leasing equipment.    Gain on sale of equipment was $22.0 million for the three months ended March 31, 2021 compared to $4.1 million in the same period in 2020, an increase of $17.9 million. The increase was primarily due to a 90.2% increase in the average sale price of our used dry containers. This increase was partially offset by a 47.2% decrease in sales volume due to the limited global availability of containers.

Depreciation and amortization.    Depreciation and amortization was $143.3 million for the three months ended March 31, 2021 compared to $132.7 million in the same period in 2020, an increase of $10.6 million. The primary reasons for the increase are as follows:
$19.1 million increase due to the increased size of our container fleet; partially offset by
$7.5 million decrease due to an increase in containers that have become fully depreciated.

Direct operating expenses.    Direct operating expenses primarily consist of our costs to repair equipment returned off lease, store equipment when it is not on lease and reposition equipment from locations with weak leasing demand. Direct operating expenses were $9.4 million for the three months ended March 31, 2021 compared to $23.2 million in the same period in 2020, a decrease of $13.8 million. The primary reasons for the decrease are as follows:
$10.1 million decrease in storage expense resulting from a decrease in the number of idle units; and
$4.0 million decrease in repair and handling expense primarily due to lower drop-off activity.


27


Administrative expenses.    Administrative expenses were $20.9 million for the three months ended March 31, 2021 compared to $19.2 million in the same period in 2020, an increase of $1.7 million. The primary reason for the increase is higher employee compensation costs, partially offset by a decrease in travel expense due to travel restrictions caused by the COVID-19 pandemic.

Provision (reversal) for doubtful accounts. There was a reversal for doubtful accounts of $2.5 million for the three months ended March 31, 2021, compared to a provision of $4.3 million in the same period in 2020. We reversed reserves in the first quarter of 2021 which were recorded last year against a mid-sized customer receivable.

Interest and debt expense.    Interest and debt expense was $54.6 million for the three months ended March 31, 2021, compared to $69.0 million in the same period in 2020, a decrease of $14.4 million. The primary reasons for the decrease are as follows:
$14.7 million decrease due to a decrease in the average effective interest rate to 3.30% from 4.19%; partially offset by
$1.1 million increase due to an increase in the average debt balance of $105.8 million.

Income taxes. Income tax expense was $11.7 million for the three months ended March 31, 2021 compared to $5.5 million in the same period in 2020, an increase in income tax expense of $6.2 million. The increase in income tax expense was the result of an increase in pre-tax income and an increase in the portion of income generated in higher tax jurisdictions.
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Contractual Obligations

We are party to various operating and finance leases and are obligated to make payments related to our borrowings. We are also obligated under various commercial commitments, including obligations to our equipment manufacturers. Our equipment manufacturer obligations are in the form of conventional accounts payable, and are satisfied by cash flows from operations and financing activities.

The following table summarizes our contractual obligations and commercial commitments as of March 31, 2021 and the effect such obligations are expected to have on our liquidity and cash flows in future periods:
 Contractual Obligations by Period
Contractual Obligations:TotalRemaining 202120222023202420252026 and thereafter
(dollars in millions)
Principal debt obligations$6,953.9 $617.5 $816.7 $1,634.4 $1,129.0 $474.9 $2,281.4 
Interest on debt obligations(1)
834.6 153.5 182.0 152.2 104.3 78.2 164.4 
Finance lease obligations(2)
18.3 2.3 3.1 3.1 9.8 — — 
Operating leases (mainly facilities)6.7 2.4 2.6 1.6 0.1 — — 
Purchase obligations:     
Equipment purchases payable342.4 342.4 — — — — — 
Equipment purchase commitments1,398.6 1,398.6 — — — — — 
Total contractual obligations$9,554.5 $2,516.7 $1,004.4 $1,791.3 $1,243.2 $553.1 $2,445.8 
(1)Amounts include actual interest for fixed debt, estimated interest for floating-rate debt and interest rate swaps which are in a payable position based on March 31, 2021 rates.
(2)Amounts include interest.

Off-Balance Sheet Arrangements

As of March 31, 2021, we did not have any relationships with unconsolidated entities or financial partnerships, which are often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements. We are, therefore, not exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in such relationships.

Critical Accounting Policies

Our consolidated financial statements have been prepared in conformity with GAAP, which requires us to make estimates and assumptions that affect the amounts and disclosures reported in the consolidated financial statements and accompanying notes. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Our actual results may differ from these estimates under different assumptions or conditions. Our critical accounting policies are discussed in our Form 10-K.
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ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the risk of loss to future earnings, values or cash flows that may result from changes in the price of a financial instrument. The fair value of a financial instrument, derivative or non-derivative, might change as a result of changes in interest rates, exchange rates, commodity prices, equity prices and other market changes. We have operations internationally and we are exposed to market risks in the ordinary course of our business. These risks include interest rate and foreign currency exchange rate risks.

Interest Rate Risk

We enter into derivative agreements to fix the interest rates on a portion of our floating-rate debt. We assess and manage the external and internal risk associated with these derivative instruments in accordance with our overall operating goals. External risk is defined as those risks outside of our direct control, including counterparty credit risk, liquidity risk, systemic risk and legal risk. Internal risk relates to those operational risks within the management oversight structure and includes actions taken in contravention of our policies.

The primary external risk of our derivative agreements is counterparty credit exposure, which is defined as the ability of a counterparty to perform its financial obligations under the agreement. All of our derivative agreements are with highly-rated financial institutions. Credit exposures are measured based on the market value of outstanding derivative instruments. Both current and potential exposures are calculated for each derivative agreement to monitor counterparty credit exposure.

As of March 31, 2021, we had derivative agreements in place to fix interest rates on a portion of our borrowings under debt facilities with floating interest rates as summarized below:
DerivativesNotional AmountWeighted Average
Fixed Leg (Pay) Interest Rate
Cap RateWeighted Average
Remaining Term
Interest Rate Swap(1)
$1,697.6 Million2.02%n/a4.8 years
Interest Rate Cap$200.0 Millionn/a5.5%2.7 years
(1)     The impact of forward starting swaps with total notional amount of $350.0 million will increase the weighted average remaining term to 5.8 years.

Our derivative agreements are designated as cash flow hedges for accounting purposes. Any unrealized gains or losses related to the changes in fair value are recognized in accumulated other comprehensive income and reclassified to interest and debt expense as they are realized. As of March 31, 2021, we do not have any material non-designated derivatives. Previously, a portion of our swap portfolio was not designated and unrealized and realized changes in the fair value of these agreements were recognized in the consolidated statements of operations as other (income) expense, net.

Approximately 97% of our debt is either fixed or hedged using derivative instruments which helps mitigate the impact of changes in short-term interest rates. However, a 100 basis point increase in the interest rates on our unhedged debt (primarily LIBOR) would result in an increase of approximately $1.5 million in interest expense over the next 12 months.

Foreign currency exchange rate risk

Although we have significant foreign-based operations, the majority of our revenues and our operating expenses are denominated in U.S. dollars. However, we pay our non-U.S. employees in local currencies and certain operating expenses are denominated in foreign currencies. Net foreign currency exchange gains and losses were immaterial for the three months ended March 31, 2021 and 2020.

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ITEM 4.    CONTROLS AND PROCEDURES.

Our senior management has evaluated the effectiveness and design of our disclosure controls and procedures (as defined under Rules 13a-15(e) and 15d-15(e)), as of March 31, 2021. Based upon their evaluation of these disclosure controls and procedures, our Chief Executive Officer and our Senior Vice President and Chief Financial Officer concluded, as of March 31, 2021, that our disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the three months ended March 31, 2021, which have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II—OTHER INFORMATION
ITEM 1.    LEGAL PROCEEDINGS.

From time to time, we are a party to litigation matters arising in connection with the normal course of our business. While we cannot predict the outcome of these matters, in the opinion of our management, based on information presently available to us, we believe that we have adequate legal defenses, reserves or insurance coverage and any liability arising from these matters will not have a material adverse effect on our business. Nevertheless, unexpected adverse future events, such as an unforeseen development in our existing proceedings, a significant increase in the number of new cases or changes in our current insurance arrangements could result in liabilities that have a material adverse impact on our business.

ITEM 1A.    RISK FACTORS.

For detailed discussion of our risk factors, refer to our Form 10-K.

ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

Share Repurchase Program

The following table provides certain information with respect to the Company's purchases of its common shares during the three months ended March 31, 2021:
Issuer Purchases of Common Shares
Period
Total number of shares purchased(1)
Average price paid per shareApproximate dollar value of shares that may yet be purchased under the plan (in thousands)
January 1, 2021 through January 31, 2021— $— $102,089 
February 1, 2021 through February 28, 2021— $— $102,089 
March 1, 2021 through March 31, 2021— $— $102,089 
Total— $— $102,089 
(1)This column represents the total number of shares purchased and the total number of shares purchased as part of publicly announced plans.

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ITEM 6.    EXHIBITS.
Exhibit
Number
Exhibit Description
Triton International Limited Amended and Restated 2016 Equity Incentive Plan
Form of Restricted Share Award Agreement under the Triton International Limited Amended and Restated 2016 Equity Incentive Plan
Form of Restricted Share Unit Award Agreement under the Triton International Limited Amended and Restated 2016 Equity Incentive Plan
Certification of the Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended
Certification of the Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended
Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350
Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350
101.INSXBRL Instance Document - the instance document does not appear on the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCHXBRL Instance Extension Schema
101.CALXBRL Taxonomy Extension Calculation Linkbase
101.DEFXBRL Taxonomy Extension Definition Linkbase
101.LABXBRL Taxonomy Extension Label Linkbase
101.PREXBRL Taxonomy Extension Presentation Linkbase
104Cover Page Inline XBRL Data (formatted as Inline XBRL and contained in Exhibit 101)
______________________________________________________________________________
*Filed herewith.
**Furnished herewith.
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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 TRITON INTERNATIONAL LIMITED
April 29, 2021By:/s/ JOHN BURNS
John Burns
Chief Financial Officer
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