Financial Statements for Guarantors of the Senior Notes (Tables)

6 Months Ended

Jun. 30, 2017

Financial Statements for Guarantors of the Senior Notes [Abstract]

Statement of Operations and Comprehensive Income

Statement of Operations and Comprehensive Income
Three Months Ended June 30, 2017
	Parent			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	564.7	$	473.4	$	(132.6	)	$	905.5
Cost of revenues	1.4			455.6		364.4		(139.5		)	681.9
Selling, engineering, and administrative expenses	35.9			33.9		43.0		—			112.8
Gains/(losses) on dispositions of property	0.1			20.9		3.4		—			24.4
	37.2			468.6		404.0		(139.5		)	770.3
Operating profit (loss)	(37.2		)	96.1		69.4		6.9			135.2
Other (income) expense	5.1			8.8		30.0		—			43.9
Equity in earnings of subsidiaries, net of taxes	103.1			26.1		—		(129.2		)	—
Income before income taxes	60.8			113.4		39.4		(122.3		)	91.3
Provision (benefit) for income taxes	9.7			31.5		9.8		(13.7		)	37.3
Net income	51.1			81.9		29.6		(108.6		)	54.0
Net income attributable to noncontrolling interest	—			—		—		2.9			2.9
Net income attributable to controlling interest	$	51.1		$	81.9	$	29.6	$	(111.5	)	$	51.1
Net income	$	51.1		$	81.9	$	29.6	$	(108.6	)	$	54.0
Other comprehensive income (loss)	1.2			—		1.0		—			2.2
Comprehensive income	52.3			81.9		30.6		(108.6		)	56.2
Comprehensive income attributable to noncontrolling interest	—			—		—		3.6			3.6
Comprehensive income attributable to controlling interest	$	52.3		$	81.9	$	30.6	$	(112.2	)	$	52.6

Statement of Operations and Comprehensive Income
Six Months Ended June 30, 2017
	Parent			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	1,116.2	$	937.2	$	(270.6	)	$	1,782.8
Cost of revenues	3.8			899.0		721.0		(282.2		)	1,341.6
Selling, engineering, and administrative expenses	68.7			64.7		81.7		—			215.1
Gains/(losses) on dispositions of property	0.6			21.0		4.1		—			25.7
	71.9			942.7		798.6		(282.2		)	1,531.0
Operating profit (loss)	(71.9		)	173.5		138.6		11.6			251.8
Other (income) expense	11.4			15.7		60.9		—			88.0
Equity in earnings of subsidiaries, net of taxes	162.3			43.2		—		(205.5		)	—
Income before income taxes	79.0			201.0		77.7		(193.9		)	163.8
Provision (benefit) for income taxes	(18.1		)	70.5		19.5		(13.8		)	58.1
Net income	97.1			130.5		58.2		(180.1		)	105.7
Net income attributable to noncontrolling interest	—			—		—		8.6			8.6
Net income attributable to controlling interest	$	97.1		$	130.5	$	58.2	$	(188.7	)	$	97.1
Net income	$	97.1		$	130.5	$	58.2	$	(180.1	)	$	105.7
Other comprehensive income (loss)	2.2			—		2.1		—			4.3
Comprehensive income	99.3			130.5		60.3		(180.1		)	110.0
Comprehensive income attributable to noncontrolling interest	—			—		—		10.1			10.1
Comprehensive income attributable to controlling interest	$	99.3		$	130.5	$	60.3	$	(190.2	)	$	99.9

Statement of Operations and Comprehensive Income
Three Months Ended June 30, 2016
	Parent			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	838.0	$	539.6	$	(192.7	)	$	1,184.9
Cost of revenues	(1.3		)	668.9		427.5		(197.4		)	897.7
Selling, engineering, and administrative expenses	33.2			35.6		37.9		—			106.7
Gains/(losses) on dispositions of property	(0.7		)	10.5		1.3		—			11.1
	32.6			694.0		464.1		(197.4		)	993.3
Operating profit (loss)	(32.6		)	144.0		75.5		4.7			191.6
Other (income) expense	(1.2		)	9.3		31.3		—			39.4
Equity in earnings of subsidiaries, net of taxes	105.9			16.0		—		(121.9		)	—
Income before income taxes	74.5			150.7		44.2		(117.2		)	152.2
Provision (benefit) for income taxes	(20.1		)	60.1		11.7		1.7			53.4
Net income	94.6			90.6		32.5		(118.9		)	98.8
Net income attributable to noncontrolling interest	—			—		—		4.2			4.2
Net income attributable to controlling interest	$	94.6		$	90.6	$	32.5	$	(123.1	)	$	94.6
Net income	$	94.6		$	90.6	$	32.5	$	(118.9	)	$	98.8
Other comprehensive income (loss)	0.9			—		1.1		—			2.0
Comprehensive income	95.5			90.6		33.6		(118.9		)	100.8
Comprehensive income attributable to noncontrolling interest	—			—		—		4.9			4.9
Comprehensive income attributable to controlling interest	$	95.5		$	90.6	$	33.6	$	(123.8	)	$	95.9

Statement of Operations and Comprehensive Income
Six Months Ended June 30, 2016
	Parent			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	1,714.0	$	1,067.4	$	(408.6	)	$	2,372.8
Cost of revenues	(3.6		)	1,375.3		834.1		(418.2		)	1,787.6
Selling, engineering, and administrative expenses	56.8			69.9		76.5		—			203.2
Gains/(losses) on dispositions of property	(0.9		)	10.3		3.6		—			13.0
	54.1			1,434.9		907.0		(418.2		)	1,977.8
Operating profit (loss)	(54.1		)	279.1		160.4		9.6			395.0
Other (income) expense	(0.1		)	18.3		65.1		—			83.3
Equity in earnings of subsidiaries, net of taxes	227.8			42.6		—		(270.4		)	—
Income before income taxes	173.8			303.4		95.3		(260.8		)	311.7
Provision (benefit) for income taxes	(18.0		)	105.0		20.4		3.4			110.8
Net income	191.8			198.4		74.9		(264.2		)	200.9
Net income attributable to noncontrolling interest	—			—		—		9.1			9.1
Net income attributable to controlling interest	$	191.8		$	198.4	$	74.9	$	(273.3	)	$	191.8
Net income	$	191.8		$	198.4	$	74.9	$	(264.2	)	$	200.9
Other comprehensive income (loss)	3.0			—		1.9		—			4.9
Comprehensive income	194.8			198.4		76.8		(264.2		)	205.8
Comprehensive income attributable to noncontrolling interest	—			—		—		10.3			10.3
Comprehensive income attributable to controlling interest	$	194.8		$	198.4	$	76.8	$	(274.5	)	$	195.5

Balance Sheet

Balance Sheet
June 30, 2017
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Assets:
Cash and cash equivalents	$	784.0	$	6.1	$	47.3	$	(28.7	)	$	808.7
Short-term marketable securities	179.6		—		—		—			179.6
Receivables, net of allowance	0.4		176.3		174.7		—			351.4
Income tax receivable	180.5		—		2.2		—			182.7
Inventory	—		405.1		232.8		(10.6		)	627.3
Property, plant, and equipment, net	49.4		2,212.5		4,333.3		(522.0		)	6,073.2
Investments in and advances to subsidiaries	5,032.6		2,963.7		363.2		(8,359.5		)	—
Restricted cash	—		0.5		165.6		28.7			194.8
Goodwill and other assets	145.6		587.1		307.4		(5.7		)	1,034.4
	$	6,372.1	$	6,351.3	$	5,626.5	$	(8,897.8	)	$	9,452.1
Liabilities:
Accounts payable	$	7.4	$	57.2	$	102.9	$	(0.4	)	$	167.1
Accrued liabilities	219.7		61.9		136.5		(5.7		)	412.4
Debt	828.2		30.2		2,411.6		—			3,270.0
Deferred income	—		20.5		1.5		—			22.0
Deferred income taxes	117.0		1,078.6		14.8		0.3			1,210.7
Advances from subsidiaries	833.9		—		—		(833.9		)	—
Other liabilities	50.4		1.9		2.1		—			54.4
Total stockholders' equity	4,315.5		5,101.0		2,957.1		(8,058.1		)	4,315.5
	$	6,372.1	$	6,351.3	$	5,626.5	$	(8,897.8	)	$	9,452.1

Balance Sheet
December 31, 2016
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Assets:
Cash and cash equivalents	$	537.9	$	5.2	$	51.3	$	(31.0	)	$	563.4
Short-term marketable securities	234.7		—		—		—			234.7
Receivables, net of allowance	1.1		219.2		158.4		—			378.7
Income tax receivable	99.9		—		2.2		—			102.1
Inventory	—		444.2		231.5		(9.9		)	665.8
Property, plant, and equipment, net	48.8		2,347.4		4,029.8		(459.2		)	5,966.8
Investments in and advances to subsidiaries	4,862.4		2,565.0		334.6		(7,762.0		)	—
Restricted cash	—		—		147.1		31.1			178.2
Goodwill and other assets	150.8		585.1		301.0		(1.3		)	1,035.6
	$	5,935.6	$	6,166.1	$	5,255.9	$	(8,232.3	)	$	9,125.3
Liabilities:
Accounts payable	$	5.7	$	54.8	$	96.1	$	(0.5	)	$	156.1
Accrued liabilities	200.0		87.7		139.7		(1.3		)	426.1
Debt	818.7		32.0		2,205.9		—			3,056.6
Deferred income	—		21.9		1.6		—			23.5
Deferred income taxes	78.6		984.7		9.3		0.3			1,072.9
Advances from subsidiaries	458.2		—		—		(458.2		)	—
Other liabilities	63.3		13.5		2.2		—			79.0
Total stockholders' equity	4,311.1		4,971.5		2,801.1		(7,772.6		)	4,311.1
	$	5,935.6	$	6,166.1	$	5,255.9	$	(8,232.3	)	$	9,125.3

Statement of Cash Flows

Statement of Cash Flows
Six Months Ended June 30, 2017
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net income	$	97.1		$	130.5		$	58.2		$	(180.1	)	$	105.7
Equity in earnings of subsidiaries, net of taxes	(162.3		)	(43.2		)	—			205.5			—
Other	(11.4		)	161.9			88.5			(8.6		)	230.4
Net cash provided (required) by operating activities	(76.6		)	249.2			146.7			16.8			336.1
Investing activities:
(Increase) decrease in short-term marketable securities	55.1			—			—			—			55.1
Proceeds from railcar lease fleet sales owned more than one year	—			446.2			9.6			(363.4		)	92.4
Proceeds from dispositions of property and other assets	—			1.0			5.0			—			6.0
Capital expenditures – leasing	—			(268.2		)	(366.8		)	363.4			(271.6		)
Capital expenditures – manufacturing and other	(5.0		)	(7.9		)	(30.5		)	—			(43.4		)
Acquisitions, net of cash acquired	—			—			(5.3		)	—			(5.3		)
(Increase) decrease in investment in partially-owned subsidiaries	—			11.2			—			(11.2		)	—
Other	—			—			(2.1		)	—			(2.1		)
Net cash provided (required) by investing activities	50.1			182.3			(390.1		)	(11.2		)	(168.9		)
Financing activities:
Excess tax benefits from stock-based compensation	—			—			—			—			—
Payments to retire debt	—			(1.8		)	(96.5		)	—			(98.3		)
Proceeds from issuance of debt	—			—			299.4			—			299.4
(Increase) decrease in restricted cash	—			(0.5		)	(18.5		)	2.4			(16.6		)
Shares repurchased	(41.9		)	—			—			—			(41.9		)
Dividends paid to common shareholders	(33.5		)	—			—			—			(33.5		)
Purchase of shares to satisfy employee tax on vested stock	(14.0		)	—			—			—			(14.0		)
Distributions to noncontrolling interest	—			—			(16.9		)	—			(16.9		)
Distributions to controlling interest in partially-owned subsidiaries	—			—			(11.2		)	11.2			—
Change in intercompany financing between entities	362.0			(428.3		)	83.2			(16.9		)	—
Other	—			—			(0.1		)	—			(0.1		)
Net cash provided (required) by financing activities	272.6			(430.6		)	239.4			(3.3		)	78.1
Net increase (decrease) in cash and cash equivalents	246.1			0.9			(4.0		)	2.3			245.3
Cash and cash equivalents at beginning of period	537.9			5.2			51.3			(31.0		)	563.4
Cash and cash equivalents at end of period	$	784.0		$	6.1		$	47.3		$	(28.7	)	$	808.7

Statement of Cash Flows
Six Months Ended June 30, 2016
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net income	$	191.8		$	198.4		$	74.9		$	(264.2	)	$	200.9
Equity in earnings of subsidiaries, net of taxes	(227.8		)	(42.6		)	—			270.4			—
Other	48.8			203.7			45.8			(12.8		)	285.5
Net cash provided (required) by operating activities	12.8			359.5			120.7			(6.6		)	486.4
Investing activities:
(Increase) decrease in short-term marketable securities	(115.1		)	—			—			—			(115.1		)
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	—			0.2			3.9			—			4.1
Capital expenditures – leasing	—			(343.7		)	(2.3		)	—			(346.0		)
Capital expenditures – manufacturing and other	(8.5		)	(8.1		)	(63.2		)	—			(79.8		)
Acquisitions, net of cash acquired	—			—			—			—			—
(Increase) decrease in investment in partially-owned subsidiaries	—			6.7			—			(6.7		)	—
Other	—			1.5			0.8			—			2.3
Net cash provided (required) by investing activities	(123.6		)	(316.1		)	(50.4		)	(6.7		)	(496.8		)
Financing activities:
Excess tax benefits from stock-based compensation	0.6			—			—			—			0.6
Payments to retire debt	—			(1.6		)	(76.0		)	—			(77.6		)
Proceeds from issuance of debt	—			—			—			—			—
(Increase) decrease in restricted cash	—			(3.0		)	6.3			9.2			12.5
Shares repurchased	(34.7		)	—			—			—			(34.7		)
Dividends paid to common shareholders	(33.4		)	—			—			—			(33.4		)
Purchase of shares to satisfy employee tax on vested stock	(16.1		)	—			—			—			(16.1		)
Distributions to noncontrolling interest	—			—			(10.9		)	—			(10.9		)
Distributions to controlling interest in partially-owned subsidiaries	—			—			(6.7		)	6.7			—
Change in intercompany financing between entities	18.7			(39.2		)	13.9			6.6			—
Other	—			—			(2.0		)	—			(2.0		)
Net cash provided (required) by financing activities	(64.9		)	(43.8		)	(75.4		)	22.5			(161.6		)
Net increase (decrease) in cash and cash equivalents	(175.7		)	(0.4		)	(5.1		)	9.2			(172.0		)
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	$	592.6		$	1.3		$	46.0		$	(25.9	)	$	614.0