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Note 6. Railcar Leasing and Management Services Group
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies [Abstract]  
Leasing Operations Of The Company [Text Block]
Note 6. 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:
December 31, 2021
Wholly-
Owned
Subsidiaries		Partially-Owned SubsidiariesTotal Leasing Group
Eliminations – Lease Subsidiary (1)
Adjusted Total Leasing Group
(in millions)
Cash and cash equivalents$3.4 $— $3.4 $— $3.4 
Accounts receivable90.7 10.1 100.8 — 100.8 
Property, plant, and equipment, net5,706.1 1,570.6 7,276.7 (779.1)6,497.6 
Restricted cash76.5 58.6 135.1 — 135.1 
Other assets67.3 2.1 69.4 — 69.4 
Total assets$5,944.0 $1,641.4 $7,585.4 $(779.1)$6,806.3 
Accounts payable and accrued liabilities$113.4 $30.1 $143.5 $— $143.5 
Debt, net3,555.8 1,216.1 4,771.9 — 4,771.9 
Deferred income taxes1,114.2 1.1 1,115.3 (176.6)938.7 
Other liabilities35.6 — 35.6 — 35.6 
Total liabilities4,819.0 1,247.3 6,066.3 (176.6)5,889.7 
Noncontrolling interest— 267.0 267.0 — 267.0 
Total Equity$1,125.0 $127.1 $1,252.1 $(602.5)$649.6 
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, net (2)
5,795.9 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)$910.6 
(1) Net deferred profit on railcars sold to the Leasing Group consists of intersegment profit that is eliminated in consolidation. Net deferred profit and the related deferred tax impact are included as adjustments to the property, plant, and equipment, net and deferred income taxes line items, respectively, in the Eliminations – Lease Subsidiary column above to reflect the net book value of the railcars purchased by the Leasing Group from the Rail Products Group based on manufacturing cost. See Note 5 and Note 8 for a further discussion regarding our investment in our partially-owned leasing subsidiaries and the related indebtedness.
(2) See Note 11 for further information regarding impairment of long-lived assets recorded in the year ended December 31, 2020.
 Year Ended December 31,Percent Change
 202120202019
2021 versus 2020
2020 versus 2019
($ in millions)
Revenues:
Leasing and management$735.3 $747.9 $756.5 (1.7)%(1.1)%
Sales of railcars owned one year or less at the time of sale (1)(2)
— 54.4 360.7 *(84.9)%
Total revenues$735.3 $802.3 $1,117.2 (8.4)%(28.2)%
Operating profit (3):
Leasing and management$296.8 $336.0 $314.7 (11.7)%6.8 %
Lease portfolio sales (1)
54.1 17.7 91.9 205.6 %(80.7)%
Total operating profit$350.9 $353.7 $406.6 (0.8)%(13.0)%
Total operating profit margin47.7 %44.1 %36.4 %
Leasing and management operating profit margin
40.4 %44.9 %41.6 %
Selected expense information:
Depreciation (4)(5)
$226.0 $214.7 $232.2 5.3 %(7.5)%
Maintenance and compliance$95.0 $88.1 $102.1 7.8 %(13.7)%
Rent and ad valorem taxes$18.4 $21.1 $28.5 (12.8)%(26.0)%
Selling, engineering, and administrative expenses
$50.6 $51.3 $49.5 (1.4)%3.6 %
Interest (6)
$181.6 $196.2 $197.2 (7.4)%(0.5)%
 * 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 year ended December 31, 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) Includes revenues associated with sales-type leases of $160.5 million for the year ended December 31, 2019.
(3) Operating profit includes: depreciation; fleet operating costs, which include maintenance, compliance, freight, and storage; rent and ad valorem taxes; 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 profits 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.
(4) In connection with our sustainable railcar conversion program, depreciation expense increased $8.8 million for the year ended December 31, 2021, as a result of the disposal of certain railcar components. Additionally, depreciation expense related to our small cube covered hopper railcars decreased by approximately $7.0 million for the years ended December 31, 2021 and 2020 as a result of the impairment charge recorded in the second quarter of 2020 related to these railcars.
(5) 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 of approximately $30.8 million in the years ended December 31, 2021 and 2020. See Note 1 for further information.
(6) Interest expense for the year ended December 31, 2021 includes $11.7 million of loss on extinguishment of debt associated with the refinancing of our partially-owned subsidiaries' debt. See Note 8 for more information. Interest expense for the year ended December 31, 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:
Year Ended December 31,
202120202019
(in millions)
Lease portfolio sales (1)
$460.7 $193.1 $566.4 
Operating profit on lease portfolio sales$54.1 $17.7 $91.9 
Operating profit margin on lease portfolio sales11.7 %9.2 %16.2 %
(1) Includes revenues associated with sales-type leases of $160.5 million for the year ended December 31, 2019.
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:
20222023202420252026ThereafterTotal
 (in millions)
Future contractual minimum rental revenues$540.2 $407.6 $305.3 $218.5 $139.2 $260.1 $1,870.9 
Debt. Wholly-owned subsidiaries. The Leasing Group’s debt at December 31, 2021 consisted primarily of non-recourse debt. As of December 31, 2021, Trinity’s wholly-owned subsidiaries included in the Leasing Group held equipment with a net book value of $4,818.6 million, which is pledged solely as collateral for Leasing Group debt held by those subsidiaries. The net book value of unpledged equipment at December 31, 2021 was $876.4 million. See Note 8 for more information regarding the Leasing Group's 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 $1,110.7 million, which is pledged as collateral for the TRIP Holdings' debt held by its subsidiaries. TRP-2021 equipment with a net book value of $459.9 million is pledged solely as collateral for the TRP-2021 debt. See Note 5 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: 
20222023202420252026ThereafterTotal
 (in millions)
Future operating lease obligations
$10.5 $8.8 $5.3 $3.5 $3.2 $4.0 $35.3 
Future contractual minimum rental revenues
$6.3 $3.9 $2.2 $1.4 $0.8 $0.1 $14.7 
Operating lease obligations totaling $1.7 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.