Financial Statements for Guarantors of the Senior Notes (Tables)

12 Months Ended

Dec. 31, 2017

Financial Statements for Guarantors of the Senior Notes [Abstract]

Statements of Operations and Comprehensive Income

Statement of Operations and Comprehensive Income
Year Ended December 31, 2017
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	2,275.9		$	1,958.6	$	(571.7	)	$	3,662.8
Cost of revenues	3.1			1,818.0			1,520.8		(596.4		)	2,745.5
Selling, engineering, and administrative expenses	159.0			135.5			160.3		—			454.8
Gains on dispositions on property	1.0			71.0			14.6		—			86.6
	161.1			1,882.5			1,666.5		(596.4		)	3,113.7
Operating profit (loss)	(161.1		)	393.4			292.1		24.7			549.1
Other (income) expense	(157.2		)	87.0			247.3		—			177.1
Equity in earnings of subsidiaries, net of taxes	671.4			77.8			—		(749.2		)	—
Income before income taxes	667.5			384.2			44.8		(724.5		)	372.0
Provision (benefit) for income taxes	(35.0		)	(295.2		)	12.0		(23.4		)	(341.6		)
Net income	702.5			679.4			32.8		(701.1		)	713.6
Net income attributable to noncontrolling interest	—			—			—		11.1			11.1
Net income attributable to controlling interest	$	702.5		$	679.4		$	32.8	$	(712.2	)	$	702.5
Net income	$	702.5		$	679.4		$	32.8	$	(701.1	)	$	713.6
Other comprehensive income (loss)	8.3			0.1			2.9		—			11.3
Comprehensive income	710.8			679.5			35.7		(701.1		)	724.9
Comprehensive income attributable to noncontrolling interest	—			—			—		13.7			13.7
Comprehensive income attributable to controlling interest	$	710.8		$	679.5		$	35.7	$	(714.8	)	$	711.2

Statement of Operations and Comprehensive Income
Year Ended December 31, 2016
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	3,267.8		$	2,122.6	$	(802.1	)	$	4,588.3
Cost of revenues	(1.3		)	2,616.1			1,671.4		(830.1		)	3,456.1
Selling, engineering, and administrative expenses	125.3			131.2			150.9		—			407.4
Gains on dispositions on property	(0.5		)	11.1			6.8		—			17.4
	124.5			2,736.2			1,815.5		(830.1		)	3,846.1
Operating profit (loss)	(124.5		)	531.6			307.1		28.0			742.2
Other (income) expense	(128.8		)	73.0			231.2		—			175.4
Equity in earnings of subsidiaries, net of taxes	387.5			91.8			—		(479.3		)	—
Income before income taxes	391.8			550.4			75.9		(451.3		)	566.8
Provision (benefit) for income taxes	48.2			186.0			25.1		(57.2		)	202.1
Net income	343.6			364.4			50.8		(394.1		)	364.7
Net income attributable to noncontrolling interest	—			—			—		21.1			21.1
Net income attributable to controlling interest	$	343.6		$	364.4		$	50.8	$	(415.2	)	$	343.6
Net income	$	343.6		$	364.4		$	50.8	$	(394.1	)	$	364.7
Other comprehensive income (loss)	0.6			(0.4		)	4.8		—			5.0
Comprehensive income	344.2			364.0			55.6		(394.1		)	369.7
Comprehensive income attributable to noncontrolling interest	—			—			—		24.2			24.2
Comprehensive income attributable to controlling interest	$	344.2		$	364.0		$	55.6	$	(418.3	)	$	345.5

Statement of Operations and Comprehensive Income
Year Ended December 31, 2015
	Parent			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	4,956.6	$	2,370.8		$	(934.7	)	$	6,392.7
Cost of revenues	(2.0		)	3,808.2		1,808.1			(958.1		)	4,656.2
Selling, engineering, and administrative expenses	147.0			162.6		166.8			—			476.4
Gains on dispositions on property	2.0			86.0		90.8			—			178.8
	143.0			3,884.8		1,884.1			(958.1		)	4,953.8
Operating profit (loss)	(143.0		)	1,071.8		486.7			23.4			1,438.9
Other (income) expense	(118.7		)	74.0		231.6			—			186.9
Equity in earnings of subsidiaries, net of taxes	920.0			217.3		—			(1,137.3		)	—
Income before income taxes	895.7			1,215.1		255.1			(1,113.9		)	1,252.0
Provision (benefit) for income taxes	99.2			370.9		(5.2		)	(38.9		)	426.0
Net income	796.5			844.2		260.3			(1,075.0		)	826.0
Net income attributable to noncontrolling interest	—			—		—			29.5			29.5
Net income attributable to controlling interest	$	796.5		$	844.2	$	260.3		$	(1,104.5	)	$	796.5
Net income	$	796.5		$	844.2	$	260.3		$	(1,075.0	)	$	826.0
Other comprehensive income (loss)	(6.0		)	—		5.5			—			(0.5		)
Comprehensive income	790.5			844.2		265.8			(1,075.0		)	825.5
Comprehensive income attributable to noncontrolling interest	—			—		—			32.5			32.5
Comprehensive income attributable to controlling interest	$	790.5		$	844.2	$	265.8		$	(1,107.5	)	$	793.0

Balance Sheets

Balance Sheet
December 31, 2017
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Assets:
Cash and cash equivalents	$	763.9	$	1.6	$	65.3	$	(52.2	)	$	778.6
Short-term marketable securities	319.5		—		—		—			319.5
Receivables, net of allowance	1.1		204.2		164.4		—			369.7
Income tax receivable	24.0		—		5.0		—			29.0
Inventory	—		413.6		236.8		(9.8		)	640.6
Property, plant, and equipment, net	47.6		2,310.7		4,293.0		(516.6		)	6,134.7
Investments in and advances to subsidiaries	5,515.2		3,049.7		255.5		(8,820.4		)	—
Restricted cash	—		—		143.0		52.2			195.2
Goodwill and other assets	159.2		590.9		326.3		(0.5		)	1,075.9
	$	6,830.5	$	6,570.7	$	5,489.3	$	(9,347.3	)	$	9,543.2
Liabilities:
Accounts payable	$	7.5	$	65.9	$	102.2	$	(0.2	)	$	175.4
Accrued liabilities	236.5		59.1		144.9		(0.5		)	440.0
Debt	838.1		28.3		2,376.0		—			3,242.4
Deferred income	—		19.1		1.4		—			20.5
Deferred income taxes	53.8		683.2		5.9		0.3			743.2
Advances from subsidiaries	775.2		—		—		(775.2		)	—
Other liabilities	61.4		0.7		1.6		—			63.7
Total stockholders' equity	4,858.0		5,714.4		2,857.3		(8,571.7		)	4,858.0
	$	6,830.5	$	6,570.7	$	5,489.3	$	(9,347.3	)	$	9,543.2

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

Statements of Cash Flows

Statement of Cash Flows
Year Ended December 31, 2017
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net income	$	702.5		$	679.4		$	32.8		$	(701.1	)	$	713.6
Equity in earnings of subsidiaries, net of taxes	(671.4		)	(77.8		)	—			749.2			—
Other	137.2			(281.4		)	213.1			(20.9		)	48.0
Net cash provided (required) by operating activities	168.3			320.2			245.9			27.2			761.6
Investing activities:
(Increase) decrease in short-term marketable securities	(84.8		)	—			—			—			(84.8		)
Proceeds from railcar lease fleet sales owned more than one year	—			663.3			61.3			(363.9		)	360.7
Proceeds from disposition of property and other assets	—			1.2			10.1			—			11.3
Capital expenditures – leasing	—			(589.8		)	(382.4		)	363.9			(608.3		)
Capital expenditures – manufacturing and other	(7.7		)	(19.1		)	(77.6		)	—			(104.4		)
Acquisitions, net of cash acquired	—			—			(47.5		)	—			(47.5		)
(Increase) decrease in investment in partially-owned subsidiaries	—			35.0			—			(35.0		)	—
Divestitures	—			—			—			—			—
Other	—			—			0.3			—			0.3
Net cash provided (required) by investing activities	(92.5		)	90.6			(435.8		)	(35.0		)	(472.7		)
Financing activities:
Proceeds from issuance of common stock, net	—			—			—			—			—
Excess tax benefits from stock-based compensation	—			—			—			—			—
Payments to retire debt	—			(3.8		)	(371.6		)	—			(375.4		)
Proceeds from issuance of debt	—			—			534.1			—			534.1
(Increase) decrease in restricted cash	—			—			4.1			(21.1		)	(17.0		)
Shares repurchased	(79.4		)	—			—			—			(79.4		)
Dividends paid to common shareholders	(72.6		)	—			—			—			(72.6		)
Purchase of shares to satisfy employee tax on vested stock	(14.4		)	—			—			—			(14.4		)
Distributions to noncontrolling interest	—			—			(48.7		)	—			(48.7		)
Distributions to controlling interest in partially-owned leasing subsidiaries	—			—			(35.0		)	35.0			—
Change in intercompany financing between entities	316.6			(410.6		)	121.3			(27.3		)	—
Other	—			—			(0.3		)	—			(0.3		)
Net cash provided (required) by financing activities	150.2			(414.4		)	203.9			(13.4		)	(73.7		)
Net increase (decrease) in cash and cash equivalents	226.0			(3.6		)	14.0			(21.2		)	215.2
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	$	763.9		$	1.6		$	65.3		$	(52.2	)	$	778.6

Statement of Cash Flows
Year Ended December 31, 2016
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net income	$	343.6		$	364.4		$	50.8		$	(394.1	)	$	364.7
Equity in earnings of subsidiaries, net of taxes	(387.5		)	(91.8		)	—			479.3			—
Other	64.5			489.2			205.2			(33.4		)	725.5
Net cash provided (required) by operating activities	20.6			761.8			256.0			51.8			1,090.2
Investing activities:
(Increase) decrease in short-term marketable securities	(149.8		)	—			—			—			(149.8		)
Proceeds from railcar lease fleet sales owned more than one year	—			27.3			10.4			—			37.7
Proceeds from disposition of property and other assets	—			4.1			11.9			—			16.0
Capital expenditures – leasing	—			(798.7		)	(0.4		)	—			(799.1		)
Capital expenditures – manufacturing and other	(18.0		)	(16.6		)	(99.7		)	—			(134.3		)
Acquisitions, net of cash acquired	—			—			—			—			—
(Increase) decrease in investment in partially-owned subsidiaries	—			17.1			—			(17.1		)	—
Divestitures	—			—			—			—			—
Other	—			1.5			5.3			—			6.8
Net cash provided (required) by investing activities	(167.8		)	(765.3		)	(72.5		)	(17.1		)	(1,022.7		)
Financing activities:
Proceeds from issuance of common stock, net	—			—			—			—			—
Excess tax benefits from stock-based compensation	1.0			—			—			—			1.0
Payments to retire debt	—			(3.6		)	(158.9		)	—			(162.5		)
Proceeds from issuance of debt	—			—			—			—			—
(Increase) decrease in restricted cash	—			0.2			13.4			4.0			17.6
Shares repurchased	(34.7		)	—			—			—			(34.7		)
Dividends paid to common shareholders	(66.7		)	—			—			—			(66.7		)
Purchase of shares to satisfy employee tax on vested stock	(16.3		)	—			—			—			(16.3		)
Distributions to noncontrolling interest	—			—			(26.4		)	—			(26.4		)
Distributions to controlling interest in partially-owned leasing subsidiaries	—			—			(17.1		)	17.1			—
Change in intercompany financing between entities	33.5			10.4			7.8			(51.7		)	—
Other	—			—			(2.1		)	—			(2.1		)
Net cash provided (required) by financing activities	(83.2		)	7.0			(183.3		)	(30.6		)	(290.1		)
Net increase (decrease) in cash and cash equivalents	(230.4		)	3.5			0.2			4.1			(222.6		)
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	$	537.9		$	5.2		$	51.3		$	(31.0	)	$	563.4

Statement of Cash Flows
Year Ended December 31, 2015
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net income	$	796.5		$	844.2		$	260.3		$	(1,075.0	)	$	826.0
Equity in earnings of subsidiaries, net of taxes	(920.0		)	(217.3		)	—			1,137.3			—
Other	57.8			(36.9		)	150.2			(57.4		)	113.7
Net cash provided (required) by operating activities	(65.7		)	590.0			410.5			4.9			939.7
Investing activities:
(Increase) decrease in short-term marketable securities	(9.9		)	—			—			—			(9.9		)
Proceeds from railcar lease fleet sales owned more than one year	—			290.6			267.2			(43.2		)	514.6
Proceeds from disposition of property and other assets	—			1.9			6.3			—			8.2
Capital expenditures – leasing	—			(821.6		)	(55.4		)	43.2			(833.8		)
Capital expenditures – manufacturing and other	(14.5		)	(44.6		)	(136.9		)	—			(196.0		)
Acquisitions, net of cash acquired	—			—			(46.2		)	—			(46.2		)
(Increase) decrease in investment in partially-owned subsidiaries	—			24.8			—			(24.8		)	—
Divestitures	—			—			51.3			—			51.3
Other	—			0.2			0.3			—			0.5
Net cash provided (required) by investing activities	(24.4		)	(548.7		)	86.6			(24.8		)	(511.3		)
Financing activities:
Proceeds from issuance of common stock, net	0.3			—			—			—			0.3
Excess tax benefits from stock-based compensation	13.3			—			—			—			13.3
Payments to retire debt	—			(3.2		)	(584.0		)	—			(587.2		)
Proceeds from issuance of debt	(1.5		)	—			243.9			—			242.4
(Increase) decrease in restricted cash	—			(0.2		)	43.3			5.2			48.3
Shares repurchased	(115.0		)	—			—			—			(115.0		)
Dividends paid to common shareholders	(64.9		)	—			—			—			(64.9		)
Purchase of shares to satisfy employee tax on vested stock	(27.5		)	—			—			—			(27.5		)
Distributions to noncontrolling interest	—			—			(39.2		)	—			(39.2		)
Distributions to controlling interest in partially-owned leasing subsidiaries	—			—			(24.8		)	24.8			—
Change in intercompany financing between entities	226.0			(47.3		)	(173.8		)	(4.9		)	—
Other	—			—			(0.8		)	—			(0.8		)
Net cash provided (required) by financing activities	30.7			(50.7		)	(535.4		)	25.1			(530.3		)
Net increase (decrease) in cash and cash equivalents	(59.4		)	(9.4		)	(38.3		)	5.2			(101.9		)
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	$	768.3		$	1.7		$	51.1		$	(35.1	)	$	786.0