Company: TRTN-PA
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001660734-25-000004
Chunk: 39

Company: Triton International Ltd
Filing Date: 2025-02-28
Form: 20-F
Item: Item 5
Chunk 39
---
2022. Partially offsetting the reversal in 2024 were reserves of $0.9 million recorded for customer receivables not expected to be collected.

Interest and debt expense. Interest and debt expense was $259.9 million in 2024 compared to $240.8 million in 2023, an increase of $19.1 million. The primary reasons for the increase were as follows:

•$28.8 million increase due to an increase in the average effective interest rate to 3.47% from 3.08% due to the maturity of lower interest fixed-rate debt in the third quarter of 2023 and the second quarter of 2024, which was repaid with higher rate variable debt borrowings; partially offset by a

•$10.0 million decrease in interest expense due to a reduction in the average debt balance of $322.8 million.

Income tax expense (benefit). Income tax expense was $48.8 million in 2024 compared to $54.5 million in 2023, a decrease of $5.7 million. The decrease in income tax expense was primarily the result of a decrease in the effective tax rate partially offset by an increase in pre-tax income. The Company's effective tax rate was 8.6% in 2024 compared to 10.3% in 2023. The decrease in the effective tax rate was primarily due to a tax benefit from the purchase of investment tax credits and an adjustment to our deferred tax liability as a result of a decrease in the portion of the Company's income sourced to the U. S. These decreases were partially offset by an increase in non-deductible compensation resulting from the payout of employee incentive compensation costs related to the Merger.

Segments

Our leasing segment is discussed in our operating results comparisons and the trading segment is discussed in the trading margin comparison within the results of operations comparisons.

For additional information on our segments, refer to Note 12 - " Segment and Geographic Information" in the Notes to the Consolidated Financial Statements.

B. Liquidity 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 debt facilities and proceeds from other financing activities. Our principal uses of cash include capital expenditures, debt service, and dividends.

For the year ended December 31, 2024, cash provided by operating activities, together with the proceeds from the sale of our leasing equipment, was $1,488.0