Railcar Leasing and Management Services Group (Tables)

12 Months Ended

Dec. 31, 2017

Sale Leaseback Transaction [Line Items]

Selected consolidating financial information for the Leasing Group

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



	December 31, 2017
	Leasing Group
	Wholly- Owned Subsidiaries			Partially- Owned Subsidiaries			Manufacturing/ Corporate			Total
	(in millions)
Cash, cash equivalents, and short-term marketable securities	$	3.3		$	—		$	1,094.8		$	1,098.1
Property, plant, and equipment, net	$	4,140.0		$	1,822.7		$	972.7		$	6,935.4
Net deferred profit on railcars sold to the Leasing Group										(800.7		)
Consolidated property, plant, and equipment, net										$	6,134.7
Restricted cash	$	132.2		$	62.9		$	0.1		$	195.2
Debt:
Recourse	$	28.3		$	—		$	849.9		$	878.2
Less: unamortized discount	—			—			(8.5		)	(8.5		)
Less: unamortized debt issuance costs	—			—			(2.9		)	(2.9		)
	28.3			—			838.5			866.8
Non-recourse	1,035.9			1,365.3			—			2,401.2
Less: unamortized debt issuance costs	(11.1		)	(14.5		)	—			(25.6		)
	1,024.8			1,350.8			—			2,375.6
Total debt	$	1,053.1		$	1,350.8		$	838.5		$	3,242.4
Net deferred tax liabilities	$	653.7		$	0.8		$	69.4		$	723.9



	December 31, 2016
	Leasing Group
	Wholly- Owned Subsidiaries			Partially- Owned Subsidiaries			Manufacturing/ Corporate			Total
	(in millions)
Cash, cash equivalents, and short-term marketable securities	$	7.2		$	—		$	790.9		$	798.1
Property, plant, and equipment, net	$	3,923.6		$	1,879.6		$	961.7		$	6,764.9
Net deferred profit on railcars sold to the Leasing Group										(798.1		)
Consolidated property, plant, and equipment, net										$	5,966.8
Restricted cash	$	99.7		$	78.4		$	0.1		$	178.2
Debt:
Recourse	$	32.1		$	—		$	849.4		$	881.5
Less: unamortized discount	—			—			(27.1		)	(27.1		)
Less: unamortized debt issuance costs	(0.1		)	—			(3.7		)	(3.8		)
	32.0			—			818.6			850.6
Non-recourse	851.4			1,381.0			—			2,232.4
Less: unamortized debt issuance costs	(11.4		)	(15.0		)	—			(26.4		)
	840.0			1,366.0			—			2,206.0
Total debt	$	872.0		$	1,366.0		$	818.6		$	3,056.6
Net deferred tax liabilities	$	956.6		$	2.0		$	98.4		$	1,057.0

Selected consolidating income statement information for the Leasing Group



	Year Ended December 31,									Percent Change
	2017			2016			2015			2017 versus 2016		2016 versus 2015
	($ in millions)
Revenues:
Leasing and management	$	743.6		$	700.9		$	699.9		6.1	%	0.1	%
Sale of railcars owned one year or less at the time of sale	99.6			126.1			404.9
Total revenues	$	843.2		$	827.0		$	1,104.8		2.0		(25.1	)

Operating profit:
Leasing and management	$	341.3		$	312.5		$	331.1		9.2		(5.6	)
Railcar sales:
Railcars owned one year or less at the time of sale	19.7			34.1			109.0
Railcars owned more than one year at the time of sale	83.5			13.5			166.1
Total operating profit	$	444.5		$	360.1		$	606.2		23.4		(40.6	)

Operating profit margin:
Leasing and management	45.9		%	44.6		%	47.3		%
Railcar sales	*			*			*
Total operating profit margin	52.7		%	43.5		%	54.9		%

Selected expense information⁽¹⁾:
Depreciation	$	172.3		$	156.2		$	142.3		10.3		9.8
Maintenance and compliance	$	96.4		$	104.3		$	97.3		(7.6	)	7.2
Rent	$	39.9		$	39.3		$	41.6		1.5		(5.5	)
Interest	$	125.8		$	125.2		$	138.8		0.5		(9.8	)

* 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 received from sale of leased railcars

During the year ended December 31, 2017, 2016, and 2015 the Company received proceeds from the sale of leased railcars as follows:



	Year Ended December 31,
	2017		2016		2015
	(in millions)
Leasing Group:
Railcars owned one year or less at the time of sale	$	99.6	$	126.1	$	404.9
Railcars owned more than one year at the time of sale	360.7		37.7		514.6
Rail Group	—		8.1		260.5
	$	460.3	$	171.9	$	1,180.0

Future contractual minimum rental revenues on leases

Future contractual minimum rental revenues on leases are as follows:



	2018		2019		2020		2021		2022		Thereafter		Total
	(in millions)
Future contractual minimum rental revenues	$	493.2	$	410.1	$	329.2	$	227.5	$	165.4	$	315.7	$	1,941.1

Railroad transportation equipment leased from independent owner trusts

Sale Leaseback Transaction [Line Items]

Schedule of 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:



	2018		2019		2020		2021		2022		Thereafter		Total
	(in millions)
Future operating lease obligations of Trusts’ railcars	$	29.2	$	28.8	$	26.1	$	26.1	$	24.9	$	93.0	$	228.1
Future contractual minimum rental revenues of Trusts’ railcars	$	38.5	$	27.5	$	17.7	$	12.7	$	8.7	$	7.8	$	112.9

Operating leases other than leases with the Trusts

Sale Leaseback Transaction [Line Items]

Schedule of 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:



	2018		2019		2020		2021		2022		Thereafter		Total
	(in millions)
Future operating lease obligations	$	12.0	$	9.5	$	7.7	$	7.6	$	6.9	$	6.6	$	50.3
Future contractual minimum rental revenues	$	10.3	$	7.7	$	4.8	$	3.6	$	3.2	$	1.2	$	30.8