Railcar Leasing and Management Services Group (Tables)

6 Months Ended

Jun. 30, 2014

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:

	June 30, 2014
	Leasing Group
	Wholly- Owned Subsidiaries		Partially-Owned Subsidiaries		Manufacturing/ Corporate			Total
	(in millions)
Cash, cash equivalents, and short-term marketable securities	$	3.3	$	—	$	930.5		$	933.8
Property, plant, and equipment, net	$	2,436.8	$	2,030.4	$	740.5		$	5,207.7
Net deferred profit on railcars sold to the Leasing Group								(537.0		)
Consolidated property, plant and equipment, net								$	4,670.7
Restricted cash	$	157.9	$	90.6	$	—		$	248.5
Debt:
Recourse	$	40.6	$	—	$	450.9		$	491.5
Less: unamortized discount	—		—		(67.0		)	(67.0		)
	40.6		—		383.9			424.5
Non-recourse	1,260.7		1,557.3		—			2,818.0
Total debt	$	1,301.3	$	1,557.3	$	383.9		$	3,242.5
Net deferred tax liabilities	$	647.8	$	0.1	$	(8.2	)	$	639.7

	December 31, 2013
	Leasing Group
	Wholly- Owned Subsidiaries		Partially-Owned Subsidiaries		Manufacturing/ Corporate			Total
	(in millions)
Cash, cash equivalents, and short-term marketable securities	$	3.5	$	—	$	574.7		$	578.2
Property, plant, and equipment, net	$	2,964.6	$	1,685.1	$	670.6		$	5,320.3
Net deferred profit on railcars sold to the Leasing Group								(549.7		)
Consolidated property, plant and equipment, net								$	4,770.6
Restricted cash	$	183.6	$	77.1	$	—		$	260.7
Debt:
Recourse	$	42.2	$	—	$	450.9		$	493.1
Less: unamortized discount	—		—		(74.1		)	(74.1		)
	42.2		—		376.8			419.0
Non-recourse	1,314.7		1,256.1		—			2,570.8
Total debt	$	1,356.9	$	1,256.1	$	376.8		$	2,989.8
Net deferred tax liabilities	$	671.9	$	—	$	(32.5	)	$	639.4

Net deferred profit on railcars sold to the Leasing Group consists of intersegment profit that is eliminated in consolidation and is, therefore, not allocated to an operating segment. 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.

Selected consolidating income statement information for the Leasing Group

	Three Months Ended June 30,								Six Months Ended June 30,
	2014			2013			Percent		2014			2013			Percent
	($ in millions)						Change		($ in millions)						Change
Revenues:
Leasing and management	$	160.7		$	150.7		6.6	%	$	310.9		$	285.0		9.1	%
Sales of railcars owned one year or less at the time of sale	70.8			18.9			*		363.7			19.0			*
Total revenues	$	231.5		$	169.6		36.5		$	674.6		$	304.0		121.9
Operating profit:
Leasing and management	$	75.5		$	71.0		6.3		$	139.4		$	125.8		10.8
Railcar sales:
Railcars owned one year or less at the time of sale	17.2			3.5					106.1			3.5
Railcars owned more than one year at the time of sale	9.7			1.2					87.2			8.0
Total operating profit	$	102.4		$	75.7		35.3		$	332.7		$	137.3		142.3
Operating profit margin:
Leasing and management	47.0		%	47.1		%			44.8		%	44.1		%
Railcar sales	*			*					*			*
Total operating profit margin	44.2		%	44.6		%			49.3		%	45.2		%
Selected expense information(1):
Depreciation	$	32.2		$	32.0		0.6		$	64.7		$	63.0		2.7
Maintenance	$	20.0		$	18.4		8.7		$	41.0		$	37.4		9.6
Rent	$	13.3		$	13.3		—		$	26.6		$	26.7		(0.4	)
Interest:
External	$	38.1		$	38.0				$	75.4		$	78.9
Intercompany	—			1.1					—			3.8
Total interest expense	$	38.1		$	39.1		(2.6	)	$	75.4		$	82.7		(8.8	)

 * 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 is eliminated in consolidation and arises from Trinity’s previous ownership of a portion of TRIP Holdings’ Senior Secured Notes, which notes were retired in full in May 2013. See Note 11 Debt.

Future contractual minimum rental revenues on leases

Future contractual minimum rental revenues on leases are as follows:

	Remaining six months of 2014		2015		2016		2017		2018		Thereafter		Total
	(in millions)
Future contractual minimum rental revenue	$	221.0	$	388.9	$	325.1	$	261.7	$	196.6	$	295.8	$	1,689.1

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 six months of 2014		2015		2016		2017		2018		Thereafter		Total
	(in millions)
Future operating lease obligations of Trusts’ railcars	$	22.4	$	43.0	$	40.0	$	41.8	$	45.2	$	253.3	$	445.7
Future contractual minimum rental revenues of Trusts’ railcars	$	35.3	$	61.7	$	50.9	$	40.2	$	29.6	$	50.2	$	267.9

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 six months of 2014		2015		2016		2017		2018		Thereafter		Total
	(in millions)
Future operating lease obligations	$	6.5	$	13.0	$	12.8	$	12.2	$	12.2	$	38.2	$	94.9
Future contractual minimum rental revenues	$	9.6	$	13.8	$	12.7	$	9.5	$	5.7	$	8.8	$	60.1