Railcar Leasing and Management Services Group (Tables)

9 Months Ended

Sep. 30, 2016

Sale Leaseback Transaction [Line Items]

Selected consolidating financial information for the Leasing Group

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



	September 30, 2016
	Leasing Group
	Wholly- Owned Subsidiaries			Partially-Owned Subsidiaries			Manufacturing/ Corporate			Total
	(in millions)
Cash, cash equivalents, and short-term marketable securities	$	5.8		$	—		$	836.7		$	842.5
Property, plant, and equipment, net	$	3,677.0		$	1,894.0		$	958.5		$	6,529.5
Net deferred profit on railcars sold to the Leasing Group										(766.3		)
Consolidated property, plant and equipment, net										$	5,763.2
Restricted cash	$	102.1		$	81.7		$	0.1		$	183.9
Debt:
Recourse	$	33.2		$	—		$	849.7		$	882.9
Less: unamortized discount	—			—			(31.5		)	(31.5		)
Less: unamortized debt issuance costs	(0.1		)	—			(3.9		)	(4.0		)
	33.1			—			814.3			847.4
Non-recourse	893.0			1,394.4			—			2,287.4
Less: unamortized debt issuance costs	(12.3		)	(15.4		)	—			(27.7		)
	880.7			1,379.0			—			2,259.7
Total debt	$	913.8		$	1,379.0		$	814.3		$	3,107.1
Net deferred tax liabilities	$	878.8		$	1.4		$	38.3		$	918.5



	December 31, 2015
	Leasing Group
	Wholly- Owned Subsidiaries			Partially-Owned Subsidiaries			Manufacturing/ Corporate			Total
	(in millions)
Cash, cash equivalents, and short-term marketable securities	$	3.8		$	—		$	867.1		$	870.9
Property, plant, and equipment, net	$	3,126.3		$	1,938.6		$	956.1		$	6,021.0
Net deferred profit on railcars sold to the Leasing Group										(673.0		)
Consolidated property, plant and equipment, net										$	5,348.0
Restricted cash	$	105.9		$	89.9		$	—		$	195.8
Debt:
Recourse	$	35.8		$	—		$	849.9		$	885.7
Less: unamortized discount	—			—			(44.2		)	(44.2		)
Less: uamortized debt issuance costs	(0.1		)	—			(4.7		)	(4.8		)
	35.7			—			801.0			836.7
Non-recourse	943.8			1,446.9			—			2,390.7
Less: unamortized debt issuance costs	(15.1		)	(16.9		)	—			(32.0		)
	928.7			1,430.0			—			2,358.7
Total debt	$	964.4		$	1,430.0		$	801.0		$	3,195.4
Net deferred tax liabilities	$	746.0		$	1.4		$	(12.6	)	$	734.8

Selected consolidating income statement information for the Leasing Group



	Three Months Ended September 30,								Nine Months Ended September 30,
	2016			2015			Percent		2016			2015			Percent
	($ in millions)						Change		($ in millions)						Change
Revenues:
Leasing and management	$	173.7		$	176.6		(1.6	)%	$	522.7		$	520.9		0.3	%
Sales of railcars owned one year or less at the time of sale	—			72.6			*		126.1			211.2			*
Total revenues	$	173.7		$	249.2		(30.3	)	$	648.8		$	732.1		(11.4	)

Operating profit:
Leasing and management	$	80.5		$	81.8		(1.6	)	$	224.8		$	254.7		(11.7	)
Railcar sales:
Railcars owned one year or less at the time of sale	—			18.6			*		34.1			61.2			*
Railcars owned more than one year at the time of sale	—			57.8			*		13.5			102.8			*
Total operating profit	$	80.5		$	158.2		(49.1	)	$	272.4		$	418.7		(34.9	)

Operating profit margin:
Leasing and management	46.3		%	46.3		%			43.0		%	48.9		%
Railcar sales	*			*					*			*
Total operating profit margin	46.3		%	63.5		%			42.0		%	57.2		%

Selected expense information⁽¹⁾:
Depreciation	$	39.4		$	35.9		9.7		$	115.5		$	105.8		9.2
Maintenance and compliance	$	21.3		$	24.6		(13.4	)	$	84.7		$	65.9		28.5
Rent	$	9.9		$	9.9		—		$	29.3		$	31.3		(6.4	)
Interest	$	31.2		$	32.5		(4.0	)	$	94.4		$	106.8		(11.6	)

* Not meaningful

⁽¹⁾Depreciation, maintenance and compliance, 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 profit 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.

Schedule of proceeds from leased railcars

During the nine months ended September 30, 2016 and 2015, the Company received proceeds from the sales of leased railcars as follows:



	Nine Months Ended September 30,
	2016		2015
	(in millions)
Leasing Group:
Railcars owned one year or less at the time of sale	$	126.1	$	211.2
Railcars owned more than one year at the time of sale	37.7		313.4
Rail Group	8.1		175.8
	$	171.9	$	700.4

Future contractual minimum rental revenues on leases

Future contractual minimum rental revenues on leases are as follows:



	Remaining three months of 2016		2017		2018		2019		2020		Thereafter		Total
	(in millions)
Future contractual minimum rental revenue	$	136.8	$	489.0	$	405.0	$	322.7	$	249.0	$	411.8	$	2,014.3

Railroad transportation equipment leased from independent owner trusts

Sale Leaseback Transaction [Line Items]

Future operating lease obligations and future contractual minimum rental revenues, Leasing group

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 2016		2017		2018		2019		2020		Thereafter		Total
	(in millions)
Future operating lease obligations of Trusts’ railcars	$	7.3	$	29.2	$	29.2	$	28.8	$	26.1	$	144.1	$	264.7
Future contractual minimum rental revenues of Trusts’ railcars	$	12.7	$	43.7	$	34.3	$	23.8	$	14.1	$	23.5	$	152.1

Other Third Parties [Member]

Sale Leaseback Transaction [Line Items]

Future operating lease obligations and future contractual minimum rental revenues, Leasing group

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 2016		2017		2018		2019		2020		Thereafter		Total
	(in millions)
Future operating lease obligations	$	3.1	$	12.1	$	12.0	$	9.5	$	7.7	$	20.7	$	65.1
Future contractual minimum rental revenues	$	4.6	$	14.5	$	7.4	$	5.4	$	3.5	$	6.6	$	42.0