Triton International LtdTRTN-PA
Triton International Ltd Segments Disclosure
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 the Company's segment information and the consolidated totals reported (in thousands):
| As of and for the Year Ended December 31, 2023 | Equipment Leasing | Equipment Trading | Totals | ||||||||||||||
| Total leasing revenues | $ | 1,537,351 | $ | 6,441 | $ | 1,543,792 | |||||||||||
| Trading margin | — | 7,899 | 7,899 | ||||||||||||||
| Net gain on sale of leasing equipment | 58,615 | — | 58,615 | ||||||||||||||
| Depreciation and amortization expense | 574,767 | 784 | 575,551 | ||||||||||||||
| Interest and debt expense | 239,844 | 994 | 240,838 | ||||||||||||||
Segment income (loss) before income taxes(1) | 515,975 | 12,563 | 528,538 | ||||||||||||||
| Equipment held for sale | 165,184 | 20,318 | 185,502 | ||||||||||||||
| Goodwill | 220,864 | 15,801 | 236,665 | ||||||||||||||
| Total assets | 11,164,052 | 68,816 | 11,232,868 | ||||||||||||||
Purchases of leasing equipment and investments in finance leases(2) | $ | 208,242 | $ | — | $ | 208,242 | |||||||||||
| As of and for the Year Ended December 31, 2022 | Equipment Leasing | Equipment Trading | Totals | ||||||||||||||
| Total leasing revenues | $ | 1,665,880 | $ | 13,806 | $ | 1,679,686 | |||||||||||
| Trading margin | — | 16,004 | 16,004 | ||||||||||||||
| Net gain on sale of leasing equipment | 115,665 | — | 115,665 | ||||||||||||||
| Depreciation and amortization expense | 634,090 | 747 | 634,837 | ||||||||||||||
| Interest and debt expense | 224,470 | 1,621 | 226,091 | ||||||||||||||
Segment income (loss) before income taxes(1) | 794,280 | 25,039 | 819,319 | ||||||||||||||
| Equipment held for sale | 97,463 | 41,043 | 138,506 | ||||||||||||||
| Goodwill | 220,864 | 15,801 | 236,665 | ||||||||||||||
| Total assets | 12,010,654 | 98,604 | 12,109,258 | ||||||||||||||
Purchases of leasing equipment and investments in finance leases(2) | $ | 943,062 | $ | — | $ | 943,062 | |||||||||||
| As of and for the Year Ended December 31, 2021 | Equipment Leasing | Equipment Trading | Totals | ||||||||||||||
| Total leasing revenues | $ | 1,519,434 | $ | 14,446 | $ | 1,533,880 | |||||||||||
| Trading margin | — | 34,099 | 34,099 | ||||||||||||||
| Net gain on sale of leasing equipment | 107,060 | — | 107,060 | ||||||||||||||
| Depreciation and amortization expense | 625,519 | 721 | 626,240 | ||||||||||||||
| Interest and debt expense | 220,292 | 1,732 | 222,024 | ||||||||||||||
Segment income (loss) before income taxes(1) | 673,477 | 40,973 | 714,450 | ||||||||||||||
| Equipment held for sale | 16,936 | 31,810 | 48,746 | ||||||||||||||
| Goodwill | 220,864 | 15,801 | 236,665 | ||||||||||||||
| Total assets | 12,543,270 | 100,568 | 12,643,838 | ||||||||||||||
Purchases of leasing equipment and investments in finance leases(2) | $ | 3,434,394 | $ | — | $ | 3,434,394 | |||||||||||
(1) Segment income before income taxes excludes unrealized gains or losses on derivative instruments and debt termination expense. The Company recorded debt termination expense of nil, $1.9 million, and $133.9 million for the years ended December 31, 2023, 2022, and 2021, respectively and an immaterial amount of unrealized gain, an unrealized gain of $0.3 million, and nil for the years ended December 31, 2023, 2022, and 2021, respectively.
(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.
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 total leasing revenues for the years ended December 31, 2023, 2022, and 2021 based on customers' primary domicile (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2023 | 2022 | 2021 | |||||||||||||||
| Total leasing revenues: | |||||||||||||||||
| Asia | $ | 529,150 | $ | 602,985 | $ | 556,837 | |||||||||||
| Europe | 822,902 | 876,691 | 807,735 | ||||||||||||||
| Americas | 132,930 | 142,822 | 118,430 | ||||||||||||||
| Bermuda | 4,203 | 3,135 | 2,424 | ||||||||||||||
| Other International | 54,607 | 54,053 | 48,454 | ||||||||||||||
| Total | $ | 1,543,792 | $ | 1,679,686 | $ | 1,533,880 | |||||||||||
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 years ended December 31, 2023, 2022 and 2021 based on the location of the sale (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2023 | 2022 | 2021 | |||||||||||||||
| Total equipment trading revenues: | |||||||||||||||||
| Asia | $ | 32,673 | $ | 71,739 | $ | 64,588 | |||||||||||
| Europe | 19,978 | 27,620 | 22,167 | ||||||||||||||
| Americas | 23,897 | 43,120 | 47,644 | ||||||||||||||
| Bermuda | — | — | — | ||||||||||||||
| Other International | 19,450 | 5,395 | 8,570 | ||||||||||||||
| Total | $ | 95,998 | $ | 147,874 | $ | 142,969 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Feb 29, 2024 | Showing above |
| 2022 | Feb 14, 2023 | |
| 2021 | Feb 15, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 19, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Mar 20, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.