Financial Statements for Guarantors of the Senior Notes (Tables)

6 Months Ended

Jun. 30, 2018

Financial Statements for Guarantors of the Senior Notes [Abstract]

Statement of Operations and Comprehensive Income

Condensed Consolidating Statement of Operations and Comprehensive Income
Three Months Ended June 30, 2018
	Parent			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	549.3	$	524.1		$	(131.1	)	$	942.3
Cost of revenues	0.5			453.2		404.0			(139.6		)	718.1
Selling, engineering, and administrative expenses	41.5			34.9		34.0			—			110.4
Gains on dispositions of property	1.3			7.6		2.8			—			11.7
	40.7			480.5		435.2			(139.6		)	816.8
Operating profit (loss)	(40.7		)	68.8		88.9			8.5			125.5
Other (income) expense	(0.6		)	7.8		32.2			—			39.4
Equity in earnings of subsidiaries, net of taxes	97.4			21.5		—			(118.9		)	—
Income before income taxes	57.3			82.5		56.7			(110.4		)	86.1
Provision (benefit) for income taxes	(6.8		)	17.0		15.4			(5.0		)	20.6
Net income	64.1			65.5		41.3			(105.4		)	65.5
Net income attributable to noncontrolling interest	—			—		—			1.4			1.4
Net income attributable to controlling interest	$	64.1		$	65.5	$	41.3		$	(106.8	)	$	64.1
Net income	$	64.1		$	65.5	$	41.3		$	(105.4	)	$	65.5
Other comprehensive income (loss)	0.1			—		(0.6		)	—			(0.5		)
Comprehensive income	64.2			65.5		40.7			(105.4		)	65.0
Comprehensive income attributable to noncontrolling interest	—			—		—			1.8			1.8
Comprehensive income attributable to controlling interest	$	64.2		$	65.5	$	40.7		$	(107.2	)	$	63.2

Condensed Consolidating Statement of Operations and Comprehensive Income
Six Months Ended June 30, 2018
	Parent			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	1,032.3	$	1,035.1	$	(293.8	)	$	1,773.6
Cost of revenues	0.7			850.0		805.3		(307.8		)	1,348.2
Selling, engineering, and administrative expenses	79.3			67.4		68.6		—			215.3
Gains on dispositions of property	1.4			9.5		3.1		—			14.0
	78.6			907.9		870.8		(307.8		)	1,549.5
Operating profit (loss)	(78.6		)	124.4		164.3		14.0			224.1
Other (income) expense	1.8			15.9		63.9		—			81.6
Equity in earnings of subsidiaries, net of taxes	181.6			46.8		—		(228.4		)	—
Income before income taxes	101.2			155.3		100.4		(214.4		)	142.5
Provision (benefit) for income taxes	(3.1		)	27.4		20.7		(9.6		)	35.4
Net income	104.3			127.9		79.7		(204.8		)	107.1
Net income attributable to noncontrolling interest	—			—		—		2.8			2.8
Net income attributable to controlling interest	$	104.3		$	127.9	$	79.7	$	(207.6	)	$	104.3
Net income	$	104.3		$	127.9	$	79.7	$	(204.8	)	$	107.1
Other comprehensive income (loss)	0.4			—		1.0		—			1.4
Comprehensive income	104.7			127.9		80.7		(204.8		)	108.5
Comprehensive income attributable to noncontrolling interest	—			—		—		3.6			3.6
Comprehensive income attributable to controlling interest	$	104.7		$	127.9	$	80.7	$	(208.4	)	$	104.9

Condensed Consolidating 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			455.8		364.6		(139.5		)	682.3
Selling, engineering, and administrative expenses	36.0			33.9		43.1		—			113.0
Gains on dispositions of property	0.1			20.9		3.4		—			24.4
	37.3			468.8		404.3		(139.5		)	770.9
Operating profit (loss)	(37.3		)	95.9		69.1		6.9			134.6
Other (income) expense	5.0			8.6		29.7		—			43.3
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

Condensed Consolidating 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			899.5		721.4		(282.2		)	1,342.5
Selling, engineering, and administrative expenses	68.9			64.7		81.9		—			215.5
Gains on dispositions of property	0.6			21.0		4.1		—			25.7
	72.1			943.2		799.2		(282.2		)	1,532.3
Operating profit (loss)	(72.1		)	173.0		138.0		11.6			250.5
Other (income) expense	11.2			15.2		60.3		—			86.7
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

Balance Sheet

Condensed Consolidating Balance Sheet
June 30, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Assets:
Cash and cash equivalents	$	590.8	$	2.7	$	50.7	$	(31.5	)	$	612.7
Short-term marketable securities	25.0		—		—		—			25.0
Receivables, net of allowance	—		159.0		197.6		(0.5		)	356.1
Income tax receivable	29.7		—		4.9		—			34.6
Inventory	—		339.7		255.1		(8.4		)	586.4
Property, plant, and equipment, net	45.7		2,063.3		4,898.9		(519.7		)	6,488.2
Investments in and advances to subsidiaries	5,719.3		3,443.9		352.1		(9,515.3		)	—
Restricted cash	—		—		110.7		31.5			142.2
Goodwill and other assets	180.4		592.8		342.7		(6.4		)	1,109.5
	$	6,590.9	$	6,601.4	$	6,212.7	$	(10,050.3	)	$	9,354.7
Liabilities:
Accounts payable	$	10.5	$	68.7	$	126.7	$	(0.6	)	$	205.3
Accrued liabilities	247.9		55.1		132.0		—			435.0
Debt	397.2		26.8		2,803.3		—			3,227.3
Deferred income	—		17.8		1.3		—			19.1
Deferred income taxes	—		724.4		28.7		(19.1		)	734.0
Advances from subsidiaries	1,203.5		—		—		(1,203.5		)	—
Other liabilities	64.0		0.7		1.5		—			66.2
Total stockholders' equity	4,667.8		5,707.9		3,119.2		(8,827.1		)	4,667.8
	$	6,590.9	$	6,601.4	$	6,212.7	$	(10,050.3	)	$	9,354.7

Condensed Consolidating 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

Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2018
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net income	$	104.3		$	127.9		$	79.7		$	(204.8	)	$	107.1
Equity in earnings of subsidiaries, net of taxes	(181.6		)	(46.8		)	—			228.4			—
Other	(12.1		)	189.2			90.8			(26.7		)	241.2
Net cash provided (required) by operating activities	(89.4		)	270.3			170.5			(3.1		)	348.3
Investing activities:
(Increase) decrease in short-term marketable securities	294.5			—			—			—			294.5
Proceeds from railcar lease fleet sales owned more than one year	—			700.1			4.0			(647.7		)	56.4
Proceeds from dispositions of property and other assets	0.1			1.8			3.6			—			5.5
Capital expenditures – leasing	—			(462.3		)	(688.6		)	647.7			(503.2		)
Capital expenditures – manufacturing and other	(2.6		)	(8.7		)	(22.6		)	—			(33.9		)
Acquisitions, net of cash acquired	—			—			(25.0		)	—			(25.0		)
(Increase) decrease in investment in partially-owned subsidiaries	—			4.9			—			(4.9		)	—
Other	—			1.0			0.3			—			1.3
Net cash provided (required) by investing activities	292.0			236.8			(728.3		)	(4.9		)	(204.4		)
Financing activities:
Payments to retire debt	(619.7		)	(1.5		)	(53.4		)	—			(674.6		)
Proceeds from issuance of debt	—			—			478.0			—			478.0
Shares repurchased	(102.2		)	—			—			—			(102.2		)
Dividends paid to common shareholders	(39.3		)	—			—			—			(39.3		)
Purchase of shares to satisfy employee tax on vested stock	(11.3		)	—			—			—			(11.3		)
Distributions to noncontrolling interest	—			—			(10.3		)	—			(10.3		)
Distributions to controlling interest in partially-owned subsidiaries	—			—			4.9			(4.9		)	—
Change in intercompany financing between entities	396.8			(504.5		)	94.8			12.9			—
Other	—			—			(3.1		)	—			(3.1		)
Net cash provided (required) by financing activities	(375.7		)	(506.0		)	510.9			8.0			(362.8		)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(173.1		)	1.1			(46.9		)	—			(218.9		)
Cash, cash equivalents, and restricted cash at beginning of period	763.9			1.6			208.3			—			973.8
Cash, cash equivalents, and restricted cash at end of period	$	590.8		$	2.7		$	161.4		$	—		$	754.9

Condensed Consolidating 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:
Payments to retire debt	—			(1.8		)	(96.5		)	—			(98.3		)
Proceeds from issuance of debt	—			—			299.4			—			299.4
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			(430.1		)	257.9			(5.7		)	94.7
Net increase (decrease) in cash, cash equivalents, and restricted cash	246.1			1.4			14.5			(0.1		)	261.9
Cash, cash equivalents, and restricted cash at beginning of period	537.9			5.2			198.4			0.1			741.6
Cash, cash equivalents, and restricted cash at end of period	$	784.0		$	6.6		$	212.9		$	—		$	1,003.5