Derivative Instruments and Fair Value Accounting Derivatives (Policies)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivative Instruments

We use derivative instruments to mitigate the impact of changes in interest rates, both in anticipation of future debt issuances and to offset interest rate variability of certain floating rate debt issuances outstanding. We also use derivative instruments to mitigate the impact of changes in foreign currency exchange rates. Derivative instruments that are designated and qualify as cash flow hedges are accounted for by recording the effective portion of the gain or loss on the derivative instrument in accumulated other comprehensive income or loss ("AOCI") as a separate component of stockholders' equity. These accumulated gains or losses are reclassified into earnings in the periods during which the hedged transactions affect earnings. We continuously monitor our derivative positions and the credit ratings of our counterparties and do not anticipate losses due to non-performance. See Note 8 for a description of our debt instruments.

Interest Rate Hedges

					Included in accompanying balance sheet at March 31, 2022
							AOCI – loss/(income)
	Notional Amount		Interest Rate (1)		Asset/(Liability)		Controlling Interest		Noncontrolling Interest
	($ in millions)
Expired hedges:
2018 secured railcar equipment notes	$	249.3	4.41	%	$	—	$	0.6	$	—
TRIP Holdings warehouse loan	$	788.5	3.60	%	$	—	$	0.4	$	0.5
2017 promissory notes – interest rate cap	$	169.3	3.00	%	$	—	$	(0.3)	$	—
Open hedge:
2017 promissory notes – interest rate swap	$	454.7	2.66	%	$	(0.7)	$	0.2	$	—

(1) Weighted average fixed interest rate, except for the interest rate cap on the 2017 promissory notes.

	Effect on interest expense – increase/(decrease)
	Three Months Ended March 31,				Expected effect during next twelve months
	2022		2021
	(in millions)
Expired hedges:
2018 secured railcar equipment notes	$	—	$	0.1	$	0.2
TRIP Holdings warehouse loan	$	0.4	$	0.5	$	0.9
2017 promissory notes – interest rate cap	$	—	$	—	$	(0.1)
Open hedge (1):
2017 promissory notes – interest rate swap	$	2.8	$	3.1	$	11.2

(1) Based on the fair value of open hedges as of March 31, 2022.

Foreign Currency Hedge

Our exposure related to foreign currency transactions is currently hedged for up to a maximum of twelve months. Information related to our foreign currency hedge is as follows:

		Included in  accompanying balance sheet at March 31, 2022				Effect on cost of revenues – increase/(decrease)
Notional Amount		Asset/ (Liability)		AOCI – loss/(income)		Three Months Ended March 31,				Expected effect during next twelve months (1)
						2022		2021
(in millions)
$	35.0	$	1.4	$	(1.5)	$	0.2	$	(3.7)	$	(1.5)

(1) Based on the fair value of open hedges as of March 31, 2022.