Thursday, September 29 2022
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,
2021 with the SEC on February 15, 2022 (the "Form 10-K"), in this Report on Form
10-Q and in any other Form 10-Q filed or to be filed by us, 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, 2022, our total fleet consisted of 4.3 million containers and chassis,
representing 7.3 million twenty-foot equivalent units ("TEU") or 8.0 million
cost equivalent units ("CEU"). We have an extensive global presence, offering
leasing services through 20 offices and 3 independent agencies located in 16
countries and 380 third-party owned and operated depot facilities in 46
countries as of March 31, 2022. Our primary customers include the world's
largest container shipping lines. For the three months ended March 31, 2022, our
twenty largest customers accounted for 85% of our lease billings, our five
largest customers accounted for 61% of our lease billings, and our three largest
customers accounted for 19%, 19%, 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 and the margins generated from trading new and used
containers.

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 the
road. Our in-house equipment sales group manages the sale process for our used
containers and chassis from our equipment leasing fleet 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, 2022,
December 31, 2021 and March 31, 2021 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 Units                                                              

Park of equipment in TEU

                                  March 31, 2022                December 31, 2021                March 31, 2021              March 31, 2022                 December 31, 2021               March 31, 2021
Dry                                3,850,167                       3,843,719                       3,417,293                   6,546,249                       6,531,816                      5,711,032
Refrigerated                         234,274                         235,338                         232,550                     455,261                         457,172                        450,087
Special                               92,184                          92,411                          94,266                     168,687                         169,004                        171,781
Tank                                  11,734                          11,692                          11,339                      11,734                          11,692                         11,339
Chassis                               23,711                          24,139                          24,078                      44,272                          44,554                         43,858
Equipment leasing fleet            4,212,070                       4,207,299                       3,779,526                   7,226,203                       7,214,238                      6,388,097
Equipment trading fleet               56,161                          53,204                          60,242                      90,090                          83,692                         93,514
Total                              4,268,231                       4,260,503                       3,839,768                   7,316,293                       7,297,930                      6,481,611


                                                                             Equipment Fleet in CEU (1)
                                                  March 31, 2022                   December 31, 2021                  March 31, 2021
Operating leases                                     7,250,246                          7,291,769                          6,892,129
Finance leases                                         666,690                            623,136                            297,168
Equipment trading fleet                                 85,686                             81,136                             92,570
Total                                                8,002,622                          7,996,041                          7,281,867


(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 an estimate for the historical
average 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 CFU at March 31, 2022:

                                                                    Percentage of total            Percentage of total
Equipment Type                                                         fleet in units                  fleet in CEU
Dry                                                                                90.2  %                        71.4  %
Refrigerated                                                                        5.4                           21.7
Special                                                                             2.2                            3.0
Tank                                                                                0.3                            1.2
Chassis                                                                             0.6                            1.6
Equipment leasing fleet                                                            98.7                           98.9
Equipment trading fleet                                                             1.3                            1.1
Total                                                                             100.0  %                       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 five 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 CEUs leased at March 31, 2022, December 31, 2021 and March 31, 2021: Rental portfolio per CEU

                             March 31, 2022          December 31, 2021          March 31, 2021
Long-term leases                                            72.4  %                   72.4  %                  74.7  %
Finance leases                                               8.6  %                    8.0  %                   4.2  %
Subtotal                                                    81.0  %                   80.4  %                  78.9  %
Service leases                                               5.0  %                    5.0  %                   6.4  %
Expired long-term leases, non-sale age (units on
hire)                                                        6.9  %                    8.4  %                   9.0  %
Expired long-term leases, sale-age (units on
hire)                                                        7.1  %                    6.2  %                   5.7  %
Total                                                      100.0  %                  100.0  %                 100.0  %
Weighted average remaining contractual term in
months for long-term and finance leases                  61                       61                        51



Due to our aggressive fleet investment in 2021 and the high cost of these new
containers, we placed the vast majority of this equipment on long-term operating
and finance leases with an average initial duration of 13 years. To better
reflect the impact of these dynamics on our lease portfolio, we have included
the following equipment lease portfolio table based on net book value of units
on-hire, as of March 31, 2022, December 31, 2021 and March 31, 2021:

Lease Portfolio by Net Book Value                  March 31, 2022          December 31, 2021          March 31, 2021
Long-term leases                                            73.0  %                   73.6  %                  80.8  %
Finance leases                                              15.0  %                   13.8  %                   3.0  %
Subtotal                                                    88.0  %                   87.4  %                  83.8  %
Service leases                                               3.7  %                    3.5  %                   5.4  %
Expired long-term leases, non-sale age (units on
hire)                                                        4.9  %                    6.2  %                   7.8  %
Expired long-term leases, sale-age (units on
hire)                                                        3.4  %                    2.9  %                   3.0  %
Total                                                      100.0  %                  100.0  %                 100.0  %
Weighted average remaining contractual term in
months for long-term and finance leases                  79                       78                        58




Operating Performance

Our operating and financial performance in the first quarter of 2022 was strong
and our profitability increased sharply compared to the first quarter of 2021.
In the first quarter, we continued  to benefit from constructive market
conditions along with the significant operating and financial momentum provided
from our aggressive investing and refinancing activity in 2021.

Fleet size. As of March 31, 2022, the net book value of our revenue earning
assets was $11.7 billion, an increase of 23.0% compared to March 31, 2021 and a
decrease of 0.7% compared to December 31, 2021. The increase from last year was
primarily due to our $3.6 billion of fleet investment in 2021 to support our
customers' sizable demand for new containers as a result of a surge in global
containerized trade volumes and operational disruptions creating a shortage of
containers. The dollar value of our investments was also driven by very high new
container prices. In 2022, our investment in new equipment has been more limited
following the rapid growth in the container fleet last year. As of April 29,
2022, we have placed orders for $428.1 million of new containers for delivery in
2022.

Utilization. Our average utilization was 99.6% for the quarter ended March 31,
2022, an increase of 0.5% compared to the first quarter of 2021 and flat
compared to the fourth quarter of 2021. Our utilization increased steadily
during 2021 as we benefited from a very high volume of container pick-ups driven
by the aggressive investment in new containers, combined with limited drop-off
activity. Our ending utilization as of March 31, 2022 was 99.5% and currently
remains at this level.

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The following tables summarize 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
                                           December 31,      September 30,      June 30,      March 31,
                       March 31, 2022          2021              2021             2021          2021
Average Utilization            99.6  %           99.6  %            99.6  %       99.4  %        99.1  %
Ending Utilization             99.5  %           99.6  %            99.6  %       99.5  %        99.3  %




Average lease rates. Average lease rates for our dry container product line
increased by 9.0% in the first quarter of 2022 compared to the first quarter of
2021. The increase in our average dry container lease rates was primarily driven
by the addition of new containers with lease rates well above the average rates
in our lease portfolio. New container prices and market lease rates were very
high throughout 2021 due to the surge in container demand and limited
availability of containers. Container prices have decreased from their peak
level of nearly $3,900 for a new 20' dry container reached in the third quarter
last year, but remain historically high with factories currently quoting just
below $3,000. Similarly, market leasing rates are down from their peak level in
2021, but also remain historically high and well above our portfolio average.

Average lease rates for our refrigerated container product line decreased by
3.7% in the first quarter of 2022 compared to the first quarter of 2021. In
2021, we completed a large lease extension transaction for refrigerated
containers that lowered the lease rates on expired leases in return for a lease
extension covering the remaining useful life of the equipment. We have also 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 decreased by 0.9% in the first
quarter of 2022 compared to the first quarter of 2021 primarily due to a lease
extension transaction for a large number of special containers completed in
2021.

Interest and Debt Expense.  Our average debt balance increased by $2.1 billion,
compared to the first quarter of 2021, as we increased borrowings to support the
significant growth in our revenue earning assets. Despite an increase in our
average debt balance, our interest expense was essentially flat compared to the
first quarter of 2021 reflecting a 0.80% decrease in our effective interest rate
to 2.50%. This decrease was driven by our extensive refinancing activity over
the last two years as we took advantage of the low interest rate environment and
the upgrade of our corporate credit ratings to investment grade. The recent rise
in interest rates may lead to an increase in our effective interest rate;
however, we remain mostly insulated, as 87% of our debt portfolio is comprised
of either fixed rate debt or hedged floating-rate debt as of March 31, 2022.

Equipment disposals. Disposal gains continue to be extraordinarily high
reflecting historically high used container sale prices. During 2021, the strong
demand for containers, record high prices for new containers, and limited
availability of used containers for sale drove used container sales prices to
record levels. In the first quarter of 2022, selling prices decreased slightly
from their peak levels in 2021, although they remained historically high due to
continued high new container prices, lingering logistical bottlenecks, low
container drop-off volumes and limited availability of used containers. We
expect used container sales prices will likely normalize further over the course
of 2022, and consequently our disposal gains are also likely to decrease from
the first quarter levels.


Cash and capital resources

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

For the trailing twelve months ended March 31, 2022, cash provided by operating
activities, together with the proceeds from the sale of our leasing equipment,
was $1,723.7 million. In addition, as of March 31, 2022, we had $72.0 million of
unrestricted cash and cash equivalents and $2,089.0 million of borrowing
capacity remaining under our existing credit facilities.

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As of March 31, 2022, our cash commitments in the next twelve months include
$463.0 million of scheduled principal payments on our existing debt facilities
and $316.3 million of committed but unpaid capital expenditures, primarily for
the purchase of equipment.

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

Capital activity

In the three months ended March 31, 2022 the Company paid dividends of $13.0 million and $42.0 million on preferred shares and common shares, respectively.

During the three months ended March 31, 2022, the Company repurchased a total of
1.3 million common shares at an average price per share of $63.74 for a total
cost of $80.2 million under its share repurchase program.

For more information, please refer to Note 5 – “Other equity matters” of the Notes to the unaudited consolidated financial statements.

Debt activity

During the first quarter, the Company completed a $600.0 million 3.25% senior
notes offering with a maturity date of March 15, 2032. In addition, the Company
exercised an early buyout option and paid $14.9 million of its remaining finance
lease obligation.

Credit Ratings

Our investment-grade corporate and long-term debt credit ratings enable us to
lower our cost of funds and broaden our access to attractively priced capital.
While a ratings downgrade would not result in a default under any of our debt
agreements, it could adversely affect our ability to issue debt and obtain new
financings, or renew existing financings, and it would increase the cost of our
financings. The Company's long-term debt and corporate ratings of BBB- from both
S&P Global Ratings and Fitch Ratings have not changed since December 31, 2021.

Debt agreements

At March 31, 2022 our outstanding indebtedness was comprised of the following
(amounts in millions):

                                                                           March 31, 2022
                                                                 Outstanding              Maximum
                                                                  Borrowings          Borrowing Level

Secured Debt Financings
Asset-backed securitization term notes                         $     3,710.1          $     3,710.1
Asset-backed securitization warehouse                                  202.0                1,125.0

Total secured debt financings                                        3,912.1                4,835.1
Unsecured Debt Financings
Senior notes                                                         2,900.0                2,900.0
Term loan facilities                                                 1,152.0                1,152.0
Revolving credit facilities                                            834.0                2,000.0
Total unsecured debt financings                                      4,886.0                6,052.0
Unamortized debt costs                                                 (65.1)                     -
Unamortized debt premiums & discounts                                   (5.6)                     -

Debt, net of unamortized costs                                 $     8,727.4          $    10,887.1




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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 either borrowing bases or an unencumbered asset test
that limits borrowing capacity. As of March 31, 2022, the availability under
these credit facilities without adding additional assets was $1,095.3 million.
As of March 31, 2022, we had a combined $7,639.1 million of total debt on
facilities with fixed interest rates or floating interest rates that have been
synthetically fixed through interest rate swap contracts. This accounts for 87%
of total debt.

Under the terms of certain loan agreements, we are required to maintain certain amounts in restricted cash accounts. From March 31, 2022we had restricted cash of $121.4 million.

For more information on our debt, please refer to Note 7 – “Debt” in the Notes to the Unaudited Consolidated Financial Statements.

Debt commitments

We are subject to certain financial covenants related to leverage and interest
coverage as defined in our debt agreements. 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, 2022, we were in compliance with all such
covenants.


Cash Flow

The following table presents certain cash flow information for the three months ended March 31, 2022 and 2021 (in thousands):

Three months completed March, 31st,

                                                                         2022                   2021
Net cash provided by (used in) operating activities               $       398,670          $   300,988
Net cash provided by (used in) investing activities               $      (453,888)         $  (525,684)
Net cash provided by (used in) financing activities               $        18,080          $   459,036



Operating Activities

Net cash provided by operating activities increased by $97.7 million to $398.7
million in the three months ended March 31, 2022 compared to $301.0 million in
the same period in 2021, primarily due to increased profitability. In addition,
there was an increase in cash collections related to leases with uneven payment
terms and an increase in cash collections on finance leases due to an increase
in our finance lease portfolio.

Investing activities

Net cash used in investing activities was $453.9 million in the three months
ended March 31, 2022 compared to $525.7 million in the same period in 2021. The
change was primarily due to a $68.2 million decrease in equipment purchases.

Fundraising activities

Net cash provided by financing activities was $18.1 million in the three months
ended March 31, 2022, compared to $459.0 million in the same period in 2021. The
change was primarily due to a $359.7 million decrease in net borrowings. In
addition, we paid $81.7 million for share repurchases in the first quarter of
2022.



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Operating results

The following table summarizes our comparative operating results for the three months ended March 31, 2022 and 2021 (in thousands).

Three months completed March, 31st,

                                                               2022                2021              Variance
Leasing revenues:
Operating leases                                          $   388,945          $  339,794          $   49,151
Finance leases                                                 28,143               6,949              21,194

Total leasing revenues                                        417,088             346,743              70,345

Equipment trading revenues                                     34,120              25,945               8,175
Equipment trading expenses                                    (29,979)            (17,804)            (12,175)
Trading margin                                                  4,141               8,141              (4,000)

Net gain on sale of leasing equipment                          28,969              21,967               7,002

Operating expenses:
Depreciation and amortization                                 160,716             143,307              17,409
Direct operating expenses                                       6,220               9,370              (3,150)
Administrative expenses                                        21,300              20,921                 379

Provision (reversal) for doubtful accounts                        (27)             (2,464)              2,437

Total operating expenses                                      188,209             171,134              17,075
Operating income (loss)                                       261,989             205,717              56,272
Other expenses:
Interest and debt expense                                      54,510              54,623                (113)

Unrealized (gain) loss on derivative instruments, net            (439)                  -                (439)
Debt termination expense                                           36                   -                  36
Other (income) expense, net                                      (308)               (481)                173
Total other expenses                                           53,799              54,142                (343)
Income (loss) before income taxes                             208,190             151,575              56,615
Income tax expense (benefit)                                   13,932              11,737               2,195
Net income (loss)                                         $   194,258       

$139,838 $54,420

Less: dividend on preferred shares                             13,028              10,513               2,515

Net income (loss) attributable to common shareholders $181,230

$129,325 $51,905

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Comparison of the three months ended March 31, 2022 and 2021

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 revenues for the periods
indicated below (in thousands):

                                        Three Months Ended March 31,
                                     2022            2021         Variance
Leasing revenues:
Operating leases
Per diem revenues                $   377,514      $ 331,252      $ 46,262
Fee and ancillary revenues            11,431          8,542         2,889
Total operating lease revenues       388,945        339,794        49,151
Finance leases                        28,143          6,949        21,194

Total leasing revenues           $   417,088      $ 346,743      $ 70,345


Total rental income was $417.1 million for the three months ended March 31, 2022compared to $346.7 million over the same period in 2021, an increase of
$70.4 million.

Per diem revenues were $377.5 million for the three months ended March 31, 2022
compared to $331.3 million in the same period in 2021, an increase of $46.2
million. The primary reasons for this increase are as follows:
•$26.1 million increase due to an increase in the average number of containers
on-hire of approximately 0.5 million CEU; and
•$18.3 million increase primarily due to an increase in average per diem rates
for our dry containers partially offset by a decrease in average per diem rates
for our refrigerated and special containers.

Fee and ancillary lease revenues were $11.4 million for the three months ended
March 31, 2022 compared to $8.5 million in the same period in 2021, an increase
of $2.9 million, primarily due to an increase in fee revenues related to the
repositioning of containers.

Finance lease revenues were $28.1 million for the three months ended March 31,
2022 compared to $6.9 million in the same period in 2021, an increase of $21.2
million. This increase is primarily due to the addition of $1.5 billion of net
finance lease receivable since April 2021 partially offset by the runoff of the
existing portfolio.

Trading margin.  Trading margin was $4.1 million for the three months ended
March 31, 2022 compared to $8.1 million in the same period in 2021, a decrease
of $4.0 million. The decrease was primarily due to a decrease in container sales
volumes.

Net gain (loss) on sale of leasing equipment.  Gain on sale of equipment was
$29.0 million for the three months ended March 31, 2022 compared to $22.0
million in the same period in 2021, an increase of $7.0 million. The increase
was primarily due to a 36.1% increase in the average sale price of our used dry
containers, partially offset by a 29.4% decrease in sales volumes due to our
limited inventory of containers available for sale.

Depreciation and amortization.  Depreciation and amortization was $160.7 million
for the three months ended March 31, 2022 compared to $143.3 million in the same
period in 2021, an increase of $17.4 million. The primary reasons for the
increase are as follows:
•$26.5 million increase due to the increased size of our container fleet;
partially offset by
•$7.7 million decrease due to an increase in the number of 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 $6.2 million for the three months ended March 31, 2022
compared to $9.4 million in the same period in 2021, a decrease of $3.2 million.
The primary reasons for the decrease are as follows:
•$2.0 million decrease in repair, handling and repositioning expense primarily
due to timing of drop-off activity; and
•$0.9 million decrease in storage expense resulting from a decrease in the
number of idle units.
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Administrative expenses.   Administrative expenses were $21.3 million for the
three months ended March 31, 2022 compared to $20.9 million in the same period
in 2021, an increase of $0.4 million.

Provision (reversal) for doubtful accounts.  Reversal for doubtful accounts was
immaterial for the three months ended March 31, 2022, compared to $2.5 million
in the same period in 2021. We reversed reserves in the first quarter of 2021
which were originally recorded in 2020 against a mid-sized customer receivable.

Interest and debt expense.  Interest and debt expense was $54.5 million for the
three months ended March 31, 2022, compared to $54.6 million in the same period
in 2021, a decrease of $0.1 million. The primary reasons for the decrease are as
follows:
•$17.4 million decrease due to a decrease in the average effective interest rate
to 2.50% from 3.30%; partially offset by
•$17.3 million increase due to an increase in the average debt balance of
$2.1 billion.

Income taxes. Income tax expense was $13.9 million for the three months ended
March 31, 2022 compared to $11.7 million in the same period in 2021, an increase
of $2.2 million. The increase in income tax expense was primarily the result of
an increase in pre-tax income partially offset by a decrease in the portion of
income generated in higher tax jurisdictions in the three months ended March 31,
2022.
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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 payment 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 commitments and obligations as of
March 31, 2022 and the effect these obligations are expected to have on our liquidity and cash flows in future periods:

                                                                                     Contractual Obligations by Period
                                                                                                                                                             2027 and
Contractual Obligations:                Total            Remaining 2022             2023               2024              2025              2026             thereafter
                                                                                           (dollars in millions)

Main debt securities $8,798.1 $346.9

$1,230.1 $1,251.7 $428.2 $2,558.3

   $   2,982.9
Interest on debt obligations(1)        1,077.3                   159.9              196.8              169.3            149.0              119.4                282.9

Operating leases (mainly
facilities)                                5.7                     2.7                2.3                0.6              0.1                  -                    -
Purchase obligations:
Equipment purchases payable               56.8                    56.8                  -                  -                -                  -                    -
Equipment purchase commitments           259.5                   259.5                  -                  -                -                  -                    -

Total contractual obligations $10,197.4 $825.8

$1,429.2 $1,421.6 $577.3 $2,677.7

$3,265.8

(1) Amounts include actual interest for fixed rate debt, estimated interest for floating rate debt and interest rate swaps that are in a callable position based on March 31, 2022 rates.

Critical Accounting Estimates

Our consolidated financial statements have been prepared in conformity with U.S.
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. For a discussion of our critical accounting estimates, see Part
II, Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations in our 2021 Annual Report on Form 10-K. There have been no
significant changes to our critical accounting estimates since our 2021 Annual
Report on Form 10-K.
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