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Railcar Leasing and Management Services Group
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Railcar Leasing and Management Services Group Railcar Leasing and Management Services Group
The Railcar Leasing and Management Services Group owns and operates a fleet of railcars as well as provides third-party fleet leasing, management, and administrative services. Selected consolidated financial information for the Leasing Group is as follows:
September 30, 2021
Wholly-
Owned
Subsidiaries		Partially-Owned SubsidiariesTotal Leasing Group
Eliminations – Lease Subsidiary(1)
Adjusted Total Leasing Group
(in millions)
Cash and cash equivalents$2.6 $— $2.6 $— $2.6 
Accounts receivable101.9 11.4 113.3 — 113.3 
Property, plant, and equipment, net5,603.4 1,594.7 7,198.1 (782.6)6,415.5 
Restricted cash81.1 42.2 123.3 — 123.3 
Other assets63.3 1.3 64.6 — 64.6 
Total assets$5,852.3 $1,649.6 $7,501.9 $(782.6)$6,719.3 
Accounts payable and accrued liabilities$137.7 $33.7 $171.4 $— $171.4 
Debt, net3,553.5 1,224.5 4,778.0 — 4,778.0 
Deferred income taxes1,087.4 1.1 1,088.5 (180.2)908.3 
Other liabilities39.1 — 39.1 — 39.1 
Total liabilities4,817.7 1,259.3 6,077.0 (180.2)5,896.8 
Noncontrolling interest— 265.4 265.4 — 265.4 
Total Equity$1,034.6 $124.9 $1,159.5 $(602.4)$557.1 
December 31, 2020
Wholly-
Owned
Subsidiaries		Partially-Owned SubsidiariesTotal Leasing Group
Eliminations – Lease Subsidiary(1)
Adjusted Total Leasing Group
(in millions)
Cash and cash equivalents$3.5 $— $3.5 $— $3.5 
Accounts receivable82.0 8.4 90.4 — 90.4 
Property, plant, and equipment, net5,795.9 1,626.3 7,422.2 (820.3)6,601.9 
Restricted cash65.2 31.1 96.3 — 96.3 
Other assets38.1 1.6 39.7 — 39.7 
Total assets$5,984.7 $1,667.4 $7,652.1 $(820.3)$6,831.8 
Accounts payable and accrued liabilities$141.4 $30.9 $172.3 $— $172.3 
Debt, net3,340.5 1,228.3 4,568.8 — 4,568.8 
Deferred income taxes1,062.3 1.1 1,063.4 (186.2)877.2 
Other liabilities25.7 — 25.7 — 25.7 
Total liabilities4,569.9 1,260.3 5,830.2 (186.2)5,644.0 
Noncontrolling interest— 277.2 277.2 — 277.2 
Total Equity$1,414.8 $129.9 $1,544.7 $(634.1)$910.6 
(1) Net deferred profit on railcars sold to the Leasing Group consists of intersegment profit that is eliminated in consolidation. Net deferred profit and the related deferred tax impact are included as adjustments to the property, plant, and equipment, net and deferred income taxes line items, respectively, in the Eliminations – Lease Subsidiary column above to reflect the net book value of the railcars purchased by the Leasing Group from the Rail Products Group based on manufacturing cost. See Note 4 and Note 7 for a further discussion regarding our investment in our partially-owned leasing subsidiaries and the related indebtedness.
 Three Months Ended September 30,Nine Months Ended September 30,
 20212020Percent20212020Percent
($ in millions)Change($ in millions)Change
Revenues:
Leasing and management$185.5 $183.9 0.9 %$554.1 $558.6 (0.8)%
Sales of railcars owned one year or less at the time of sale (1)
— — *— 54.4 (100.0)%
Total revenues$185.5 $183.9 0.9 %$554.1 $613.0 (9.6)%
Operating profit (2):
Leasing and management$76.4 $86.8 (12.0)%$223.0 $247.8 (10.0)%
Lease portfolio sales (1)
$32.9 $2.9 *45.7 17.7 158.2 %
Total operating profit$109.3 $89.7 21.9 %$268.7 $265.5 1.2 %
Total operating profit margin58.9 %48.8 %48.5 %43.3 %
Leasing and management operating profit margin
41.2 %47.2 %40.2 %44.4 %
Selected expense information:
Depreciation (3)
$58.7 $51.5 14.0 %$170.5 $159.1 7.2 %
Maintenance and compliance$22.8 $18.5 23.2 %$73.7 $67.4 9.3 %
Rent$1.9 $2.1 (9.5)%$5.3 $8.1 (34.6)%
Selling, engineering, and administrative expenses
$11.6 $11.7 (0.9)%$36.1 $39.0 (7.4)%
Interest (4)
$39.9 $47.0 (15.1)%$142.6 $149.2 (4.4)%
*Not meaningful
(1) Beginning in the fourth quarter of 2020, we made a prospective change in the presentation of sales of railcars from the lease fleet. Therefore, all railcar sales for the three and nine months ended September 30, 2021 are presented as a net gain or loss from the disposal of a long-term asset regardless of the age of railcar that is sold. See Note 1 for more information.
(2) 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.
(3) Depreciation expense increased $4.7 million and $7.3 million for the three and nine months ended September 30, 2021, respectively, as a result of the disposal of certain railcar components associated with our sustainable railcar conversion program. Additionally, depreciation expense related to our small cube covered hopper railcars decreased by approximately $7.0 million for the nine months ended September 30, 2021 relative to the nine months ended September 30, 2020 as a result of the impairment charge recorded in the second quarter of 2020 related to these railcars.
(4) Interest expense for the nine months ended September 30, 2021 includes $11.7 million of loss on extinguishment of debt associated with the refinancing of our partially-owned subsidiaries' debt. See Note 7 for more information. Interest expense for the nine months ended September 30, 2020 includes $5.0 million of loss on extinguishment of debt associated with the early redemption of debt.
Information related to lease portfolio sales is as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
(in millions)
Lease portfolio sales$322.1 $6.5 $410.9 $193.1 
Operating profit on lease portfolio sales$32.9 $2.9 $45.7 $17.7 
Operating profit margin on lease portfolio sales10.2 %44.6 %11.1 %9.2 %
Railcar Leasing Equipment Portfolio. The Leasing Group's equipment consists primarily of railcars leased by third parties. The Leasing Group purchases equipment manufactured predominantly by the Rail Products Group and enters into lease contracts with third parties with terms generally ranging between one year and ten years. The Leasing Group primarily enters into operating leases. Future contractual minimum rental revenues on operating leases related to our wholly-owned and partially-owned subsidiaries are as follows:
Remaining three months of 20212022202320242025ThereafterTotal
 (in millions)
Future contractual minimum rental revenues$145.1 $492.6 $371.8 $278.1 $196.8 $343.7 $1,828.1 
Debt. Wholly-owned subsidiaries. The Leasing Group’s debt at September 30, 2021 consisted primarily of non-recourse debt. As of September 30, 2021, Trinity’s wholly-owned subsidiaries included in the Leasing Group held equipment with a net book value of $4,761.9 million, which is pledged solely as collateral for Leasing Group debt held by those subsidiaries. The net book value of unpledged equipment at September 30, 2021 was $825.8 million. See Note 7 for more information regarding the Leasing Group debt.
Partially-owned subsidiaries. Debt owed by TRIP Holdings and RIV 2013 and their respective subsidiaries is nonrecourse to Trinity and TILC. Creditors of each of TRIP Holdings and RIV 2013 and their respective subsidiaries have recourse only to the particular subsidiary's assets. TRIP Holdings held equipment with a net book value of $1,130.2 million, which is pledged solely as collateral for the TRIP Holdings' debt held by its subsidiaries. TRP-2021 equipment with a net book value of $464.5 million is pledged solely as collateral for the TRP-2021 debt. See Note 4 for a description of TRIP Holdings and RIV 2013 and their respective subsidiaries.
Operating Lease Obligations. 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 three months of 20212022202320242025ThereafterTotal
 (in millions)
Future operating lease obligations
$2.8 $10.8 $9.0 $5.5 $3.7 $7.8 $39.6 
Future contractual minimum rental revenues$1.6 $5.0 $3.0 $2.1 $1.2 $0.7 $13.6 
Operating lease obligations totaling $1.8 million are guaranteed by Trinity Industries, Inc. and certain subsidiaries. The Leasing Group also has future amounts due for operating lease obligations related to office space of approximately $1.7 million, which is excluded from the table above.