Railcar Leasing and Management Services Group (Tables)

9 Months Ended

Sep. 30, 2013

Future Contractual Minimum Rental Revenues on Leases [Line Items]

Selected consolidating financial information for the Leasing Group

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

	September 30, 2013
	Leasing Group
	Wholly- Owned Subsidiaries		Partially-Owned Subsidiaries		Manufacturing/ Corporate			Total
	(in millions)
Cash, cash equivalents, and short-term marketable securities	$	2.5	$	—	$	496.1		$	498.6
Property, plant, and equipment, net	$	2,964.6	$	1,756.3	$	629.0		$	5,349.9
Net deferred profit on railcars sold to the Leasing Group								(648.6		)
Consolidated property, plant and equipment, net								$	4,701.3
Restricted cash	$	170.5	$	78.8	$	—		$	249.3
Debt:
Recourse	$	42.9	$	—	$	450.9		$	493.8
Less: unamortized discount	—		—		(77.6		)	(77.6		)
	42.9		—		373.3			416.2
Non-recourse	1,332.2		1,272.7		—			2,604.9
Total debt	$	1,375.1	$	1,272.7	$	373.3		$	3,021.1
Net deferred tax liabilities	$	693.2	$	—	$	(124.9	)	$	568.3

	December 31, 2012
	Leasing Group
	Wholly- Owned Subsidiaries		Partially-Owned Subsidiaries			Manufacturing/ Corporate			Total
	(in millions)
Cash and cash equivalents	$	5.7	$	—		$	567.3		$	573.0
Property, plant, and equipment, net	$	2,773.1	$	1,549.3		$	539.3		$	4,861.7
Net deferred profit on railcars sold to the Leasing Group									(562.7		)
Consolidated property, plant and equipment, net									$	4,299.0
Restricted cash	$	165.4	$	57.8		$	—		$	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	1,404.2		1,301.5			—			2,705.7
Less: non-recourse debt owned by Trinity	—		(108.8		)	—			(108.8		)
Total debt	$	1,498.6	$	1,192.7		$	363.7		$	3,055.0
Net deferred tax liabilities	$	671.1	$	5.4		$	(120.7	)	$	555.8

See Note 5 Partially-Owned Leasing Subsidiaries and Note 11 Debt for a further discussion regarding the Company’s investment in its partially-owned leasing subsidiaries and the related indebtedness. Certain prior year balances with respect to RIV 2013 have been reclassified as pertaining to a partially-owned subsidiary to conform to the 2013 presentation. See Note 5 Partially-Owned Leasing Subsidiaries.

Selected consolidating income statement information for the Leasing Group

	Three Months Ended September 30,								Nine Months Ended September 30,
	2013			2012			Percent		2013			2012			Percent
	($ in millions)						Change		($ in millions)						Change
Revenues:
Leasing and management	$	150.6		$	136.5		10.3	%	$	435.6		$	395.9		10.0	%
Sales of railcars owned one year or less at the time of sale	—			23.4			*		19.0			100.5			*
Total revenues	$	150.6		$	159.9		(5.8	)	$	454.6		$	496.4		(8.4	)
Operating profit:
Leasing and management	$	72.4		$	63.8		13.5		$	198.2		$	185.0		7.1
Railcar sales:
Railcars owned one year or less at the time of sale	—			4.3					3.5			20.7
Railcars owned more than one year at the time of sale	1.6			17.0					9.6			22.3
Total operating profit	$	74.0		$	85.1		(13.0	)	$	211.3		$	228.0		(7.3	)
Operating profit margin:
Leasing and management	48.1		%	46.7		%			45.5		%	46.7		%
Railcar sales	*			*					*			*
Total operating profit margin	49.1		%	53.2		%			46.5		%	45.9		%
Selected expense information(1):
Depreciation	$	32.8		$	30.6		7.2		$	95.8		$	89.9		6.6
Maintenance	$	16.4		$	14.4		13.9		$	53.8		$	43.2		24.5
Rent	$	13.3		$	12.7		4.7		$	40.0		$	38.2		4.7
Interest:
External	$	37.3		$	39.3				$	116.2		$	118.4
Intercompany	—			3.3					3.8			9.8
Total interest expense	$	37.3		$	42.6		(12.4	)	$	120.0		$	128.2		(6.4	)

 * Not meaningful

⁽¹⁾ Depreciation, maintenance, and rent expense are components of operating profit. Amortization of deferred profit on railcars sold from the Rail Group to the Leasing Group is included in the operating profits of the Leasing Group resulting in the recognition of depreciation expense based on the Company's original manufacturing cost of the railcars. Interest expense is not a component of operating profit and includes the effect of hedges. Intercompany interest expense arises from Trinity’s previous 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:

	Remaining three months of 2013		2014		2015		2016		2017		Thereafter		Total
	(in millions)
Future contractual minimum rental revenue	$	115.0	$	395.6	$	333.3	$	271.2	$	206.9	$	393.6	$	1,715.6

Operating leases with the Trusts

Future Contractual Minimum Rental Revenues on Leases [Line Items]

Future operating lease obligations and future contractual minimum rental revenues

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:

	Remaining three months of 2013		2014		2015		2016		2017		Thereafter		Total
	(in millions)
Future operating lease obligations of Trusts’ railcars	$	11.3	$	44.7	$	43.0	$	40.1	$	41.9	$	298.9	$	479.9
Future contractual minimum rental revenues of Trusts’ railcars	$	15.9	$	53.4	$	42.7	$	32.6	$	23.2	$	37.6	$	205.4

Operating leases other than leases with the Trusts

Future Contractual Minimum Rental Revenues on Leases [Line Items]

Future operating lease obligations and future contractual minimum rental revenues

Future amounts due as well as future contractual minimum rental revenues related to operating leases other than leases discussed above are as follows:

	Remaining three months of 2013		2014		2015		2016		2017		Thereafter		Total
	(in millions)
Future operating lease obligations	$	3.2	$	12.8	$	12.8	$	12.7	$	12.1	$	50.3	$	103.9
Future contractual minimum rental revenues	$	4.7	$	18.0	$	12.4	$	11.5	$	8.9	$	14.5	$	70.0