Railcar Leasing and Management Services Group (Tables)

12 Months Ended

Dec. 31, 2012

Selected consolidating financial information for the Leasing Group

Selected consolidating financial information for the Leasing Group is as follows:



	December 31, 2012
	Leasing Group
	Wholly- Owned Subsidiaries			TRIP Holdings			Manufacturing/ Corporate			Total
	(in millions)
Cash and cash equivalents	$	5.7		$	—		$	567.3		$	573.0
Property, plant, and equipment, net	$	3,203.8		$	1,118.6		$	539.3		$	4,861.7
Net deferred profit on railcars sold to the Leasing Group	(381.8		)	(180.9		)	—			(562.7		)
	$	2,822.0		$	937.7		$	539.3		$	4,299.0
Restricted cash	$	172.9		$	50.3		$	—		$	223.2
Debt:
Recourse	$	94.4		$	—		$	451.2		$	545.6
Less: unamortized discount	—			—			(87.5		)	(87.5		)
	94.4			—			363.7			458.1
Non-recourse	1,738.0			967.7			—			2,705.7
Less: non-recourse debt owned by Trinity	—			(108.8		)	—			(108.8		)
Total debt	$	1,832.4		$	858.9		$	363.7		$	3,055.0
Net deferred tax liabilities	$	671.1		$	5.4		$	(120.7	)	$	555.8



	December 31, 2011
	Leasing Group
	Wholly- Owned Subsidiaries			TRIP Holdings			Manufacturing/ Corporate			Total
	(in millions)
Cash and cash equivalents	$	3.2		$	—		$	347.9		$	351.1
Property, plant, and equipment, net	$	3,066.0		$	1,135.0		$	489.6		$	4,690.6
Net deferred profit on railcars sold to the Leasing Group	(344.5		)	(187.0		)	—			(531.5		)
	$	2,721.5		$	948.0		$	489.6		$	4,159.1
Restricted cash	$	165.7		$	74.6		$	—		$	240.3
Debt:
Recourse	$	103.3		$	—		$	451.5		$	554.8
Less: unamortized discount	—			—			(99.8		)	(99.8		)
	103.3			—			351.7			455.0
Non-recourse	1,616.0			1,010.0			—			2,626.0
Less: non-recourse debt owned by Trinity	—			(108.8		)	—			(108.8		)
Total debt	$	1,719.3		$	901.2		$	351.7		$	2,972.2
Net deferred tax liabilities	$	582.4		$	4.7		$	(152.4	)	$	434.7

Selected consolidating income statement information for the Leasing Group



	Year Ended December 31,									Percent Change
	2012			2011			2010			2012 versus 2011		2011 versus 2010
	($ in millions)
Revenues:
Wholly owned subsidiaries:
Leasing and management	$	409.8		$	375.1		$	345.4		9.3	%	8.6	%
Railcar sales	118.6			59.4			3.1			*		*
	528.4			434.5			348.5			21.6		24.7
TRIP Holdings:
Leasing and management	118.7			117.5			116.0			1.0		1.3
Railcar sales	—			—			—			—		—
	118.7			117.5			116.0			1.0		1.3
Total revenues	$	647.1		$	552.0		$	464.5		17.2		18.8
Operating Profit:
Wholly owned subsidiaries:
Leasing and management	$	175.2		$	156.3		$	131.7
Railcar sales:
Railcars owned one year or less at the time of sale	24.8			13.2			0.2
Railcars owned more than one year at the time of sale	32.8			11.8			6.6
	232.8			181.3			138.5
TRIP Holdings:
Leasing and management	67.4			68.8			68.5
Railcar sales:
Railcars owned one year or less at the time of sale	—			—			—
Railcars owned more than one year at the time of sale	0.7			4.4			—
	68.1			73.2			68.5
Total operating profit	$	300.9		$	254.5		$	207.0
Operating profit margin:
Leasing and management	45.9		%	45.7		%	43.4		%
Railcar sales	*			*			*
Total operating profit margin	46.5			46.1			44.6

Depreciation, interest, and rent expense⁽¹⁾:
Depreciation expense	$	120.5		$	115.7		$	112.6
Rent expense	$	50.9		$	48.6		$	48.6
Interest expense:
Wholly-owned subsidiaries	$	101.2		$	101.3		$	91.7
TRIP Holdings:
External	60.0			53.1			46.9
Intercompany	13.1			6.4			—
	73.1			59.5			46.9
Total interest expense	$	174.3		$	160.8		$	138.6

* Not meaningful


(1)	Depreciation and rent expense are components of operating profit. Interest expense is not a component of operating profit and includes the effect of hedges. Intercompany interest expense arises from Trinity’s ownership of a portion of TRIP Holdings’ Senior Secured Notes and is eliminated in consolidation. See Note 11 Debt.

Future contractual minimum rental revenues on leases

Future contractual minimum rental revenues on leases are as follows:



	2013		2014		2015		2016		2017		Thereafter		Total
	(in millions)
Wholly-owned subsidiaries	$	274.9	$	222.9	$	177.7	$	136.8	$	95.0	$	205.7	$	1,113.0
TRIP Holdings	94.3		71.8		59.1		48.9		34.9		44.0		353.0
	$	369.2	$	294.7	$	236.8	$	185.7	$	129.9	$	249.7	$	1,466.0

Future operating lease obligations and future contractual minimum rental revenues related to railcars owned by the Trusts

Future operating lease obligations of the Leasing Group’s subsidiaries as well as future contractual minimum rental revenues related to these leases due to the Leasing Group are as follows:



	2013		2014		2015		2016		2017		Thereafter		Total
	(in millions)
Future operating lease obligations of Trusts’ railcars	$	45.6	$	44.7	$	43.0	$	40.1	$	41.9	$	298.9	$	514.2
Future contractual minimum rental revenues of Trusts’ railcars	$	55.0	$	39.8	$	30.5	$	21.9	$	13.1	$	30.0	$	190.3

Future operating lease obligations and future contractual minimum rental revenues related to operating leases other than leases with the Trusts

Future amounts due as well as future contractual minimum rental revenues related to operating leases other than leases with the Trusts are as follows:



	2013		2014		2015		2016		2017		Thereafter		Total
	(in millions)
Future operating lease obligations	$	12.9	$	12.8	$	12.8	$	12.7	$	12.1	$	50.3	$	113.6
Future contractual minimum rental revenues	$	16.6	$	16.0	$	12.4	$	11.4	$	8.9	$	14.0	$	79.3

- Definition

Tabular disclosure of each significant reconciling item, other than profit (loss), revenues, or assets, in the reconciliation of totals of such items in reportable segments to the entity's corresponding consolidated amount.

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