Financial Statements for Guarantors of the Senior Notes (Tables)

9 Months Ended

Sep. 30, 2016

Financial Statements for Guarantors of the Senior Notes [Abstract]

Statement of Operations and Comprehensive Income

Statement of Operations and Comprehensive Income
Three Months Ended September 30, 2016
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	686.7		$	620.0	$	(195.0	)	$	1,111.7
Cost of revenues	0.3			555.2			474.0		(202.2		)	827.3
Selling, engineering, and administrative expenses	33.8			27.2			41.3		—			102.3
Gains/(losses) on dispositions of property	0.2			0.2			1.1		—			1.5
	33.9			582.2			514.2		(202.2		)	928.1
Operating profit (loss)	(33.9		)	104.5			105.8		7.2			183.6
Other (income) expense	—			9.9			34.2		—			44.1
Equity in earnings of subsidiaries, net of taxes	114.8			33.9			—		(148.7		)	—
Income before income taxes	80.9			128.5			71.6		(141.5		)	139.5
Provision (benefit) for income taxes	(3.3		)	30.9			19.7		2.6			49.9
Net income	84.2			97.6			51.9		(144.1		)	89.6
Net income attributable to noncontrolling interest	—			—			—		5.4			5.4
Net income attributable to controlling interest	$	84.2		$	97.6		$	51.9	$	(149.5	)	$	84.2
Net income	$	84.2		$	97.6		$	51.9	$	(144.1	)	$	89.6
Other comprehensive income (loss)	0.3			(0.1		)	1.4		—			1.6
Comprehensive income	84.5			97.5			53.3		(144.1		)	91.2
Comprehensive income attributable to noncontrolling interest	—			—			—		6.2			6.2
Comprehensive income attributable to controlling interest	$	84.5		$	97.5		$	53.3	$	(150.3	)	$	85.0

Statement of Operations and Comprehensive Income
Nine Months Ended September 30, 2016
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	2,186.8		$	1,881.4	$	(583.7	)	$	3,484.5
Cost of revenues	(3.3		)	1,772.3			1,446.2		(600.3		)	2,614.9
Selling, engineering, and administrative expenses	90.7			92.3			122.5		—			305.5
Gains/(losses) on dispositions of property	(0.7		)	10.6			4.6		—			14.5
	88.1			1,854.0			1,564.1		(600.3		)	2,905.9
Operating profit (loss)	(88.1		)	332.8			317.3		16.6			578.6
Other (income) expense	(0.1		)	27.2			100.3		—			127.4
Equity in earnings of subsidiaries, net of taxes	343.2			76.5			—		(419.7		)	—
Income before income taxes	255.2			382.1			217.0		(403.1		)	451.2
Provision (benefit) for income taxes	(20.8		)	116.6			58.9		6.0			160.7
Net income	276.0			265.5			158.1		(409.1		)	290.5
Net income attributable to noncontrolling interest	—			—			—		14.5			14.5
Net income attributable to controlling interest	$	276.0		$	265.5		$	158.1	$	(423.6	)	$	276.0
Net income	$	276.0		$	265.5		$	158.1	$	(409.1	)	$	290.5
Other comprehensive income (loss)	3.3			(0.1		)	3.3		—			6.5
Comprehensive income	279.3			265.4			161.4		(409.1		)	297.0
Comprehensive income attributable to noncontrolling interest	—			—			—		16.5			16.5
Comprehensive income attributable to controlling interest	$	279.3		$	265.4		$	161.4	$	(425.6	)	$	280.5

Statement of Operations and Comprehensive Income
Three Months Ended September 30, 2015
	Parent			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	1,084.3	$	678.3		$	(220.4	)	$	1,542.2
Cost of revenues	0.1			818.6		513.2			(222.5		)	1,109.4
Selling, engineering, and administrative expenses	38.5			41.2		46.9			—			126.6
Gains/(losses) on dispositions of property	0.2			31.0		27.5			—			58.7
	38.4			828.8		532.6			(222.5		)	1,177.3
Operating profit (loss)	(38.4		)	255.5		145.7			2.1			364.9
Other (income) expense	4.8			7.8		32.5			—			45.1
Equity in earnings of subsidiaries, net of taxes	283.3			56.9		—			(340.2		)	—
Income before income taxes	240.1			304.6		113.2			(338.1		)	319.8
Provision (benefit) for income taxes	35.8			96.5		21.1			(45.8		)	107.6
Net income	204.3			208.1		92.1			(292.3		)	212.2
Net income attributable to noncontrolling interest	—			—		—			7.9			7.9
Net income attributable to controlling interest	$	204.3		$	208.1	$	92.1		$	(300.2	)	$	204.3
Net income	$	204.3		$	208.1	$	92.1		$	(292.3	)	$	212.2
Other comprehensive income (loss)	(1.0		)	—		(0.1		)	—			(1.1		)
Comprehensive income	203.3			208.1		92.0			(292.3		)	211.1
Comprehensive income attributable to noncontrolling interest	—			—		—			8.4			8.4
Comprehensive income attributable to controlling interest	$	203.3		$	208.1	$	92.0		$	(300.7	)	$	202.7

Statement of Operations and Comprehensive Income
Nine Months Ended September 30, 2015
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	3,484.2		$	2,049.6	$	(688.1	)	$	4,845.7
Cost of revenues	(1.8		)	2,708.0			1,534.4		(700.5		)	3,540.1
Selling, engineering, and administrative expenses	94.5			112.4			132.4		—			339.3
Gains/(losses) on dispositions of property	1.7			38.9			74.0		—			114.6
	91.0			2,781.5			1,592.8		(700.5		)	3,764.8
Operating profit (loss)	(91.0		)	702.7			456.8		12.4			1,080.9
Other (income) expense	11.9			23.8			107.5		—			143.2
Equity in earnings of subsidiaries, net of taxes	726.4			181.5			—		(907.9		)	—
Income before income taxes	623.5			860.4			349.3		(895.5		)	937.7
Provision (benefit) for income taxes	27.0			276.5			54.3		(42.1		)	315.7
Net income	596.5			583.9			295.0		(853.4		)	622.0
Net income attributable to noncontrolling interest	—			—			—		25.5			25.5
Net income attributable to controlling interest	$	596.5		$	583.9		$	295.0	$	(878.9	)	$	596.5
Net income	$	596.5		$	583.9		$	295.0	$	(853.4	)	$	622.0
Other comprehensive income (loss)	(0.1		)	(0.5		)	4.6		—			4.0
Comprehensive income	596.4			583.4			299.6		(853.4		)	626.0
Comprehensive income attributable to noncontrolling interest	—			—			—		27.5			27.5
Comprehensive income attributable to controlling interest	$	596.4		$	583.4		$	299.6	$	(880.9	)	$	598.5

Balance Sheet

Balance Sheet
September 30, 2016
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Assets:
Cash and cash equivalents	$	523.6	$	3.9	$	64.3	$	(34.0	)	$	557.8
Short-term marketable securities	284.7		—		—		—			284.7
Receivables, net of allowance	—		184.4		189.0		(1.2		)	372.2
Income tax receivable	54.9		—		—		—			54.9
Inventory	—		594.8		291.0		(16.2		)	869.6
Property, plant, and equipment, net	45.7		2,128.5		4,068.1		(479.1		)	5,763.2
Investments in and advances to subsidiaries	6,627.5		3,568.8		1,063.7		(11,260.0		)	—
Restricted cash	—		—		149.9		34.0			183.9
Goodwill and other assets	163.8		585.1		301.4		(1.0		)	1,049.3
	$	7,700.2	$	7,065.5	$	6,127.4	$	(11,757.5	)	$	9,135.6
Liabilities:
Accounts payable	$	9.2	$	83.7	$	119.6	$	(1.5	)	$	211.0
Accrued liabilities	229.8		87.2		161.7		(1.0		)	477.7
Debt	814.1		33.2		2,259.8		—			3,107.1
Deferred income	—		22.6		1.6		—			24.2
Deferred income taxes	70.0		861.5		4.2		0.3			936.0
Advances from subsidiaries	2,213.3		—		—		(2,213.3		)	—
Other liabilities	109.4		13.5		2.3		—			125.2
Total stockholders' equity	4,254.4		5,963.8		3,578.2		(9,542.0		)	4,254.4
	$	7,700.2	$	7,065.5	$	6,127.4	$	(11,757.5	)	$	9,135.6

Balance Sheet
December 31, 2015
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Assets:
Cash and cash equivalents	$	768.3	$	1.7	$	51.1	$	(35.1	)	$	786.0
Short-term marketable securities	84.9		—		—		—			84.9
Receivables, net of allowance	0.1		196.3		173.5		—			369.9
Income tax receivable	94.9		—		—		—			94.9
Inventory	—		634.1		325.4		(16.4		)	943.1
Property, plant, and equipment, net	37.7		1,597.0		4,204.3		(491.0		)	5,348.0
Investments in and advances to subsidiaries	6,262.9		3,633.1		908.5		(10,804.5		)	—
Restricted cash	—		0.2		160.5		35.1			195.8
Goodwill and other assets	178.8		579.8		304.7		—			1,063.3
	$	7,427.6	$	6,642.2	$	6,128.0	$	(11,311.9	)	$	8,885.9
Liabilities:
Accounts payable	$	9.9	$	62.9	$	144.3	$	(0.3	)	$	216.8
Accrued liabilities	224.9		137.3		168.5		(1.1		)	529.6
Debt	800.6		35.6		2,359.2		—			3,195.4
Deferred income	—		25.4		1.7		—			27.1
Deferred income taxes	31.2		711.3		9.4		0.3			752.2
Advances from subsidiaries	2,212.2		—		—		(2,212.2		)	—
Other liabilities	100.1		13.6		2.4		—			116.1
Total stockholders' equity	4,048.7		5,656.1		3,442.5		(9,098.6		)	4,048.7
	$	7,427.6	$	6,642.2	$	6,128.0	$	(11,311.9	)	$	8,885.9

Statement of Cash Flows

Statement of Cash Flows
Nine Months Ended September 30, 2016
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net income	$	276.0		$	265.5		$	158.1		$	(409.1	)	$	290.5
Equity in earnings of subsidiaries, net of taxes	(343.2		)	(76.5		)	—			419.7			—
Other	157.4			211.9			153.6			(21.3		)	501.6
Net cash provided (required) by operating activities	90.2			400.9			311.7			(10.7		)	792.1
Investing activities:
(Increase) decrease in short-term marketable securities	(199.8		)	—			—			—			(199.8		)
Proceeds from railcar lease fleet sales owned more than one year	—			27.3			10.4			—			37.7
Proceeds from dispositions of property and other assets	—			2.2			6.7			—			8.9
Capital expenditures – leasing	—			(553.6		)	(1.6		)	—			(555.2		)
Capital expenditures – manufacturing and other	(12.9		)	(6.5		)	(81.7		)	—			(101.1		)
Acquisitions, net of cash acquired	—			—			—			—			—
(Increase) decrease in investment in partially-owned subsidiaries	—			11.7			—			(11.7		)	—
Divestitures	—			—			—			—			—
Other	—			—			4.0			—			4.0
Net cash provided (required) by investing activities	(212.7		)	(518.9		)	(62.2		)	(11.7		)	(805.5		)
Financing activities:
Proceeds from issuance of common stock, net	—			—			—			—			—
Excess tax benefits from stock-based compensation	0.8			—			—			—			0.8
Payments to retire debt	—			(2.5		)	(103.5		)	—			(106.0		)
Proceeds from issuance of debt	—			—			—			—			—
(Increase) decrease in restricted cash	—			0.2			10.6			1.1			11.9
Shares repurchased	(34.7		)	—			—			—			(34.7		)
Dividends paid to common shareholders	(50.0		)	—			—			—			(50.0		)
Purchase of shares to satisfy employee tax on vested stock	(16.4		)	—			—			—			(16.4		)
Distributions to noncontrolling interest	—			—			(18.4		)	—			(18.4		)
Distributions to controlling interest in partially-owned subsidiaries	—			—			(11.7		)	11.7			—
Change in intercompany financing between entities	(21.9		)	122.5			(111.3		)	10.7			—
Other	—			—			(2.0		)	—			(2.0		)
Net cash provided (required) by financing activities	(122.2		)	120.2			(236.3		)	23.5			(214.8		)
Net increase (decrease) in cash and cash equivalents	(244.7		)	2.2			13.2			1.1			(228.2		)
Cash and cash equivalents at beginning of period	768.3			1.7			51.1			(35.1		)	786.0
Cash and cash equivalents at end of period	$	523.6		$	3.9		$	64.3		$	(34.0	)	$	557.8

Statement of Cash Flows
Nine Months Ended September 30, 2015
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net income	$	596.5		$	583.9		$	295.0		$	(853.4	)	$	622.0
Equity in earnings of subsidiaries, net of taxes	(726.4		)	(181.5		)	—			907.9			—
Other	20.5			(81.2		)	93.8			(24.8		)	8.3
Net cash provided (required) by operating activities	(109.4		)	321.2			388.8			29.7			630.3
Investing activities:
(Increase) decrease in short-term marketable securities	75.0			—			—			—			75.0
Proceeds from railcar lease fleet sales owned more than one year	—			142.1			214.5			(43.2		)	313.4
Proceeds from dispositions of property and other assets	—			1.9			4.2			—			6.1
Capital expenditures – leasing	—			(638.1		)	(47.3		)	43.2			(642.2		)
Capital expenditures – manufacturing and other	(8.4		)	(30.9		)	(105.8		)	—			(145.1		)
Acquisitions, net of cash acquired	—			—			(46.2		)	—			(46.2		)
(Increase) decrease in investment in partially-owned subsidiaries	—			19.3			—			(19.3		)	—
Divestitures	—			—			51.3			—			51.3
Other	—			0.9			3.9			—			4.8
Net cash provided (required) by investing activities	66.6			(504.8		)	74.6			(19.3		)	(382.9		)
Financing activities:
Proceeds from issuance of common stock, net	0.2			—			—			—			0.2
Excess tax benefits from stock-based compensation	13.1			—			—			—			13.1
Payments to retire debt	—			(2.5		)	(528.3		)	—			(530.8		)
Proceeds from issuance of debt	(1.5		)	—			243.9			—			242.4
(Increase) decrease in restricted cash	—			—			27.7			4.6			32.3
Shares repurchased	(107.5		)	—			—			—			(107.5		)
Dividends paid to common shareholders	(48.0		)	—			—			—			(48.0		)
Purchase of shares to satisfy employee tax on vested stock	(27.4		)	—			—			—			(27.4		)
Distributions to noncontrolling interest	—			—			(30.4		)	—			(30.4		)
Distributions to controlling interest in partially-owned subsidiaries	—			—			(19.3		)	19.3			—
Change in intercompany financing between entities	36.7			175.5			(182.5		)	(29.7		)	—
Other	—			—			(1.4		)	—			(1.4		)
Net cash provided (required) by financing activities	(134.4		)	173.0			(490.3		)	(5.8		)	(457.5		)
Net increase (decrease) in cash and cash equivalents	(177.2		)	(10.6		)	(26.9		)	4.6			(210.1		)
Cash and cash equivalents at beginning of period	827.7			11.1			89.4			(40.3		)	887.9
Cash and cash equivalents at end of period	$	650.5		$	0.5		$	62.5		$	(35.7	)	$	677.8