Financial Statements for Guarantors of the Senior Notes (Tables)

9 Months Ended

Sep. 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 September 30, 2018
	Parent			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	526.2	$	550.3	$	(145.6	)	$	930.9
Cost of revenues	5.7			442.3		455.1		(151.1		)	752.0
Selling, engineering, and administrative expenses	40.0			32.4		38.7		—			111.1
Gains on dispositions of property	(0.1		)	7.7		3.5		—			11.1
	45.8			467.0		490.3		(151.1		)	852.0
Operating profit (loss)	(45.8		)	59.2		60.0		5.5			78.9
Other (income) expense	(4.3		)	8.3		35.9		—			39.9
Equity in earnings of subsidiaries, net of taxes	62.8			16.4		—		(79.2		)	—
Income before income taxes	21.3			67.3		24.1		(73.7		)	39.0
Provision (benefit) for income taxes	(6.4		)	9.9		6.9		0.3			10.7
Net income	27.7			57.4		17.2		(74.0		)	28.3
Net income attributable to noncontrolling interest	—			—		—		0.6			0.6
Net income attributable to controlling interest	$	27.7		$	57.4	$	17.2	$	(74.6	)	$	27.7
Net income	$	27.7		$	57.4	$	17.2	$	(74.0	)	$	28.3
Other comprehensive income (loss)	1.4			—		0.7		—			2.1
Comprehensive income	29.1			57.4		17.9		(74.0		)	30.4
Comprehensive income attributable to noncontrolling interest	—			—		—		0.9			0.9
Comprehensive income attributable to controlling interest	$	29.1		$	57.4	$	17.9	$	(74.9	)	$	29.5

Condensed Consolidating Statement of Operations and Comprehensive Income
Nine Months Ended September 30, 2018
	Parent			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	1,558.5	$	1,585.4	$	(439.4	)	$	2,704.5
Cost of revenues	6.4			1,292.3		1,260.3		(458.8		)	2,100.2
Selling, engineering, and administrative expenses	119.3			99.8		107.3		—			326.4
Gains on dispositions of property	1.3			17.1		6.7		—			25.1
	124.4			1,375.0		1,360.9		(458.8		)	2,401.5
Operating profit (loss)	(124.4		)	183.5		224.5		19.4			303.0
Other (income) expense	(2.5		)	24.2		99.8		—			121.5
Equity in earnings of subsidiaries, net of taxes	244.3			63.3		—		(307.6		)	—
Income before income taxes	122.4			222.6		124.7		(288.2		)	181.5
Provision (benefit) for income taxes	(9.6		)	37.3		27.7		(9.3		)	46.1
Net income	132.0			185.3		97.0		(278.9		)	135.4
Net income attributable to noncontrolling interest	—			—		—		3.4			3.4
Net income attributable to controlling interest	$	132.0		$	185.3	$	97.0	$	(282.3	)	$	132.0
Net income	$	132.0		$	185.3	$	97.0	$	(278.9	)	$	135.4
Other comprehensive income (loss)	1.8			—		1.7		—			3.5
Comprehensive income	133.8			185.3		98.7		(278.9		)	138.9
Comprehensive income attributable to noncontrolling interest	—			—		—		4.5			4.5
Comprehensive income attributable to controlling interest	$	133.8		$	185.3	$	98.7	$	(283.4	)	$	134.4

Condensed Consolidating Statement of Operations and Comprehensive Income
Three Months Ended September 30, 2017
	Parent			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	622.5	$	501.3	$	(150.2	)	$	973.6
Cost of revenues	(0.1		)	493.6		385.7		(156.5		)	722.7
Selling, engineering, and administrative expenses	39.5			35.6		39.5		—			114.6
Gains on dispositions of property	(0.1		)	15.9		0.3		—			16.1
	39.5			513.3		424.9		(156.5		)	821.2
Operating profit (loss)	(39.5		)	109.2		76.4		6.3			152.4
Other (income) expense	5.7			6.1		33.0		—			44.8
Equity in earnings of subsidiaries, net of taxes	111.7			17.5		—		(129.2		)	—
Income before income taxes	66.5			120.6		43.4		(122.9		)	107.6
Provision (benefit) for income taxes	(0.4		)	35.5		6.4		(1.8		)	39.7
Net income	66.9			85.1		37.0		(121.1		)	67.9
Net income attributable to noncontrolling interest	—			—		—		1.0			1.0
Net income attributable to controlling interest	$	66.9		$	85.1	$	37.0	$	(122.1	)	$	66.9
Net income	$	66.9		$	85.1	$	37.0	$	(121.1	)	$	67.9
Other comprehensive income (loss)	1.8			—		0.3		—			2.1
Comprehensive income	68.7			85.1		37.3		(121.1		)	70.0
Comprehensive income attributable to noncontrolling interest	—			—		—		1.5			1.5
Comprehensive income attributable to controlling interest	$	68.7		$	85.1	$	37.3	$	(122.6	)	$	68.5

Condensed Consolidating Statement of Operations and Comprehensive Income
Nine Months Ended September 30, 2017
	Parent			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	1,738.6	$	1,438.5	$	(420.7	)	$	2,756.4
Cost of revenues	3.7			1,393.1		1,107.0		(438.6		)	2,065.2
Selling, engineering, and administrative expenses	108.4			100.3		121.4		—			330.1
Gains on dispositions of property	0.5			36.9		4.4		—			41.8
	111.6			1,456.5		1,224.0		(438.6		)	2,353.5
Operating profit (loss)	(111.6		)	282.1		214.5		17.9			402.9
Other (income) expense	16.9			21.3		93.3		—			131.5
Equity in earnings of subsidiaries, net of taxes	274.1			60.6		—		(334.7		)	—
Income before income taxes	145.6			321.4		121.2		(316.8		)	271.4
Provision (benefit) for income taxes	(18.4		)	105.8		26.0		(15.6		)	97.8
Net income	164.0			215.6		95.2		(301.2		)	173.6
Net income attributable to noncontrolling interest	—			—		—		9.6			9.6
Net income attributable to controlling interest	$	164.0		$	215.6	$	95.2	$	(310.8	)	$	164.0
Net income	$	164.0		$	215.6	$	95.2	$	(301.2	)	$	173.6
Other comprehensive income (loss)	4.1			—		2.3		—			6.4
Comprehensive income	168.1			215.6		97.5		(301.2		)	180.0
Comprehensive income attributable to noncontrolling interest	—			—		—		11.6			11.6
Comprehensive income attributable to controlling interest	$	168.1		$	215.6	$	97.5	$	(312.8	)	$	168.4

Balance Sheet

Condensed Consolidating Balance Sheet
September 30, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Assets:
Cash and cash equivalents	$	333.0	$	70.2	$	51.8	$	(27.6	)	$	427.4
Short-term marketable securities	—		—		—		—			—
Receivables, net of allowance	—		201.1		196.4		(1.3		)	396.2
Income tax receivable	41.4		—		4.9		—			46.3
Inventory	—		459.0		258.3		(10.3		)	707.0
Property, plant, and equipment, net	52.9		2,081.8		4,990.5		(587.2		)	6,538.0
Investments in and advances to subsidiaries	5,806.5		3,373.4		341.3		(9,521.2		)	—
Restricted cash	—		—		110.9		27.6			138.5
Goodwill and other assets	208.9		590.2		356.7		(4.2		)	1,151.6
	$	6,442.7	$	6,775.7	$	6,310.8	$	(10,124.2	)	$	9,405.0
Liabilities:
Accounts payable	$	15.0	$	93.6	$	112.2	$	(1.3	)	$	219.5
Accrued liabilities	216.7		55.7		138.6		—			411.0
Debt	397.3		26.5		2,851.9		—			3,275.7
Deferred income	—		17.2		1.2		—			18.4
Deferred income taxes	—		738.9		34.7		(17.7		)	755.9
Advances from subsidiaries	1,104.5		—		—		(1,104.5		)	—
Other liabilities	69.8		0.6		14.7		—			85.1
Total stockholders' equity	4,639.4		5,843.2		3,157.5		(9,000.7		)	4,639.4
	$	6,442.7	$	6,775.7	$	6,310.8	$	(10,124.2	)	$	9,405.0

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
Nine Months Ended September 30, 2018
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net income	$	132.0		$	185.3		$	97.0		$	(278.9	)	$	135.4
Equity in earnings of subsidiaries, net of taxes	(244.3		)	(63.3		)	—			307.6			—
Other	(24.1		)	88.1			151.7			(31.2		)	184.5
Net cash provided (required) by operating activities	(136.4		)	210.1			248.7			(2.5		)	319.9
Investing activities:
(Increase) decrease in short-term marketable securities	319.5			—			—			—			319.5
Proceeds from railcar lease fleet sales owned more than one year	—			707.8			63.3			(647.7		)	123.4
Proceeds from dispositions of property and other assets	0.2			2.5			9.1			—			11.8
Capital expenditures – leasing	—			(611.9		)	(711.6		)	647.7			(675.8		)
Capital expenditures – manufacturing and other	(11.6		)	(14.7		)	(36.7		)	—			(63.0		)
Acquisitions, net of cash acquired	—			—			(25.0		)	—			(25.0		)
(Increase) decrease in investment in partially-owned subsidiaries	—			7.1			—			(7.1		)	—
Other	—			(1.9		)	—			—			(1.9		)
Net cash provided (required) by investing activities	308.1			88.9			(700.9		)	(7.1		)	(311.0		)
Financing activities:
Payments to retire debt	(647.6		)	(1.8		)	(89.6		)	—			(739.0		)
Proceeds from issuance of debt	—			—			561.3			—			561.3
Shares repurchased	(156.1		)	—			—			—			(156.1		)
Dividends paid to common shareholders	(58.1		)	—			—			—			(58.1		)
Purchase of shares to satisfy employee tax on vested stock	(11.5		)	—			—			—			(11.5		)
Distributions to noncontrolling interest	—			—			(10.3		)	—			(10.3		)
Distributions to controlling interest in partially-owned subsidiaries	—			—			7.1			(7.1		)	—
Change in intercompany financing between entities	270.7			(228.6		)	(58.8		)	16.7			—
Other	—			—			(3.1		)	—			(3.1		)
Net cash provided (required) by financing activities	(602.6		)	(230.4		)	406.6			9.6			(416.8		)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(430.9		)	68.6			(45.6		)	—			(407.9		)
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	$	333.0		$	70.2		$	162.7		$	—		$	565.9

Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 30, 2017
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net income	$	164.0		$	215.6		$	95.2		$	(301.2	)	$	173.6
Equity in earnings of subsidiaries, net of taxes	(274.1		)	(60.6		)	—			334.7			—
Other	28.5			134.9			165.7			(14.5		)	314.6
Net cash provided (required) by operating activities	(81.6		)	289.9			260.9			19.0			488.2
Investing activities:
(Increase) decrease in short-term marketable securities	84.7			—			—			—			84.7
Proceeds from railcar lease fleet sales owned more than one year	—			515.8			8.4			(363.9		)	160.3
Proceeds from dispositions of property and other assets	—			1.2			6.9			—			8.1
Capital expenditures – leasing	—			(349.2		)	(375.1		)	363.9			(360.4		)
Capital expenditures – manufacturing and other	(5.9		)	(12.3		)	(43.7		)	—			(61.9		)
Acquisitions, net of cash acquired	—			—			(47.5		)	—			(47.5		)
(Increase) decrease in investment in partially-owned subsidiaries	—			30.0			—			(30.0		)	—
Other	—			—			(0.3		)	—			(0.3		)
Net cash provided (required) by investing activities	78.8			185.5			(451.3		)	(30.0		)	(217.0		)
Financing activities:
Payments to retire debt	—			(2.7		)	(332.2		)	—			(334.9		)
Proceeds from issuance of debt	—			—			534.1			—			534.1
Shares repurchased	(52.4		)	—			—			—			(52.4		)
Dividends paid to common shareholders	(53.0		)	—			—			—			(53.0		)
Purchase of shares to satisfy employee tax on vested stock	(14.1		)	—			—			—			(14.1		)
Distributions to noncontrolling interest	—			—			(41.4		)	—			(41.4		)
Distributions to controlling interest in partially-owned subsidiaries	—			—			(30.0		)	30.0			—
Change in intercompany financing between entities	437.4			(471.8		)	53.5			(19.1		)	—
Other	—			—			(0.1		)	—			(0.1		)
Net cash provided (required) by financing activities	317.9			(474.5		)	183.9			10.9			38.2
Net increase (decrease) in cash, cash equivalents, and restricted cash	315.1			0.9			(6.5		)	(0.1		)	309.4
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	$	853.0		$	6.1		$	191.9		$	—		$	1,051.0