XML 59 R34.htm IDEA: XBRL DOCUMENT v3.20.1
Railcar Leasing and Management Services Group (Tables)
 3 Months Ended
Mar. 31, 2020
Sale Leaseback Transaction [Line Items]  
Selected consolidating financial information for the Leasing Group Selected consolidated financial information for the Leasing Group is as follows:
 
March 31, 2020
 
Wholly-
Owned
Subsidiaries
 
Partially-Owned Subsidiaries
 
Total Leasing Group
 
Eliminations — Lease Subsidiary(1)
 
Adjusted Total Leasing Group
 
(in millions)
Cash and cash equivalents
$
7.3

 
$
—

 
$
7.3

 
$
—

 
$
7.3

Accounts receivable
75.7

 
9.3

 
85.0

 
—

 
85.0

Property, plant, and equipment, net
5,837.5

 
1,776.6

 
7,614.1

 
(899.7
)
 
6,714.4

Restricted cash
69.0

 
27.3

 
96.3

 
—

 
96.3

Other assets
53.4

 
1.3

 
54.7

 
—

 
54.7

Total assets
$
6,042.9

 
$
1,814.5

 
$
7,857.4

 
$
(899.7
)
 
$
6,957.7

 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
85.6

 
$
42.4

 
$
128.0

 
$
—

 
$
128.0

Debt, net
3,078.8

 
1,263.5

 
4,342.3

 
—

 
4,342.3

Deferred income taxes
912.4

 
1.1

 
913.5

 
(202.9
)
 
710.6

Other liabilities
82.7

 
—

 
82.7

 
—

 
82.7

Total liabilities
4,159.5

 
1,307.0

 
5,466.5

 
(202.9
)
 
5,263.6

Noncontrolling interest
—

 
349.7

 
349.7

 
—

 
349.7

Total Equity
$
1,883.4

 
$
157.8

 
$
2,041.2

 
$
(696.8
)
 
$
1,344.4

 
December 31, 2019
 
Wholly-
Owned
Subsidiaries
 
Partially-Owned Subsidiaries
 
Total Leasing Group
 
Eliminations — Lease Subsidiary(1)
 
Adjusted Total Leasing Group
 
(in millions)
Cash and cash equivalents
$
1.8

 
$
—

 
$
1.8

 
$
—

 
$
1.8

Accounts receivable
73.9

 
8.7

 
82.6

 
—

 
82.6

Property, plant, and equipment, net
5,818.9

 
1,786.7

 
7,605.6

 
(903.8
)
 
6,701.8

Restricted cash
78.4

 
33.0

 
111.4

 
—

 
111.4

Other assets
209.8

 
1.4

 
211.2

 
—

 
211.2

Total assets
$
6,182.8

 
$
1,829.8

 
$
8,012.6

 
$
(903.8
)
 
$
7,108.8

 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
72.7

 
$
44.6

 
$
117.3

 
$
—

 
$
117.3

Debt, net
3,080.7

 
1,278.4

 
4,359.1

 
—

 
4,359.1

Deferred income taxes
861.7

 
1.1

 
862.8

 
(184.8
)
 
678.0

Other liabilities
60.7

 
—

 
60.7

 
—

 
60.7

Total liabilities
4,075.8

 
1,324.1

 
5,399.9

 
(184.8
)
 
5,215.1

Noncontrolling interest
—

 
348.8

 
348.8

 
—

 
348.8

Total Equity
$
2,107.0

 
$
156.9

 
$
2,263.9

 
$
(719.0
)
 
$
1,544.9

(1) Net deferred profit on railcars sold to the Leasing Group consists of intersegment profit that is eliminated in consolidation. Net deferred profit and the related deferred tax impact are included as adjustments to the property, plant, and equipment, net and deferred income taxes line items, respectively, in the Eliminations – Lease Subsidiary column above to reflect the net book value of the railcars purchased by the Leasing Group from the Rail Products Group based on manufacturing cost. See Note 4 and Note 7 for a further discussion regarding our investment in our partially-owned leasing subsidiaries and the related indebtedness.
Selected consolidating income statement information for the Leasing Group

 
Three Months Ended March 31,
 
2020
 
2019
 
Percent
 
($ in millions)
 
Change
Revenues:
 
 
 
 
 
Leasing and management
$
192.0

 
$
187.1

 
2.6
 %
Sales of railcars owned one year or less at the time of sale
44.3

 
13.3

 
233.1
 %
Total revenues
$
236.3

 
$
200.4

 
17.9
 %
 
 
 
 
 


Operating profit(1):
 
 
 
 


Leasing and management
$
82.5

 
$
77.1

 
7.0
 %
Railcar sales:
 
 
 
 


Railcars owned one year or less at the time of sale
1.7

 
0.8

 
112.5
 %
Railcars owned more than one year at the time of sale
8.7

 
7.9

 
10.1
 %
Total operating profit
$
92.9

 
$
85.8

 
8.3
 %
Total operating profit margin
39.3
%

42.8
%
 


 
 
 
 
 


Leasing and management operating profit margin
43.0
%

41.2
%
 


 
 
 
 
 


Selected expense information:
 
 
 
 


Depreciation (2)
$
53.6

 
$
54.4

 
(1.5
)%
Maintenance and compliance
$
25.9

 
$
27.8

 
(6.8
)%
Rent
$
3.0

 
$
5.5

 
(45.5
)%
Selling, engineering, and administrative expenses
$
14.3

 
$
12.8

 
11.7
 %
Interest
$
55.1

 
$
46.0

 
19.8
 %

(1) Operating profit includes: depreciation; maintenance and compliance; rent; and selling, engineering, and administrative expenses. Amortization of deferred profit on railcars sold from the Rail Products Group to the Leasing Group is included in the operating profit of the Leasing Group, resulting in the recognition of depreciation expense based on our original manufacturing cost of the railcars. Interest expense is not a component of operating profit and includes the effect of hedges.
(2) Effective January 1, 2020, we revised the estimated useful lives and salvage values of certain railcar types in our lease fleet. This change in estimate resulted in a decrease in depreciation expense in the three months ended March 31, 2020 of approximately $7.7 million. This decrease was partially offset by higher depreciation associated with growth in the lease fleet. See Note 1 of the Consolidated Financial Statements for further information.
Schedule of proceeds from leased railcars
During the three months ended March 31, 2020 and 2019, information related to the sales of leased railcars is as follows:
 
Three Months Ended March 31,
 
2020
 
2019
 
(in millions)
Sales of leased railcars:
 
 
 
Railcars owned one year or less at the time of sale
$
44.3

 
$
13.3

Railcars owned more than one year at the time of sale
68.5

 
29.4

 
$
112.8

 
$
42.7

 
 
 
 
Operating profit on sales of leased railcars:
 
 
 
Railcars owned one year or less at the time of sale
$
1.7

 
$
0.8

Railcars owned more than one year at the time of sale
8.7

 
7.9

 
$
10.4

 
$
8.7

 
 
 
 
Operating profit margin on sales of leased railcars:
 
 
 
Railcars owned one year or less at the time of sale
3.8
%
 
6.0
%
Railcars owned more than one year at the time of sale
12.7
%
 
26.9
%
Weighted average operating profit margin on sales of leased railcars
9.2
%
 
20.4
%
Future contractual minimum rental revenues on leases Future contractual minimum rental revenues on operating leases related to our wholly-owned and partially-owned subsidiaries are as follows:
 
Remaining nine months of 2020
 
2021
 
2022
 
2023
 
2024
 
Thereafter
 
Total
 
(in millions)
Future contractual minimum rental revenues
$
440.7

 
$
475.9

 
$
371.7

 
$
266.6

 
$
183.2

 
$
330.5

 
$
2,068.6
Operating leases  
Sale Leaseback Transaction [Line Items]  
Future operating lease obligations and future contractual minimum rental revenues Future amounts due as well as future contractual minimum rental revenues related to the Leasing Group's railcar operating lease obligations are as follows: 
 
Remaining nine months of 2020
 
2021
 
2022
 
2023
 
2024
 
Thereafter
 
Total
 
(in millions)
Future operating lease obligations
$
7.5

 
$
8.2

 
$
7.5

 
$
5.5

 
$
2.3

 
$
0.9

 
$
31.9

Future contractual minimum rental revenues
$
5.8

 
$
6.2

 
$
4.6

 
$
2.2

 
$
0.5

 
$
0.3

 
$
19.6