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Note 4. Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block] Segment Information
We report our operating results in two reportable segments: (1) the Railcar Leasing and Management Services Group, which owns and operates a fleet of railcars and provides third-party fleet leasing, management, and administrative services, as well as other railcar logistics products and services; and (2) the Rail Products Group, which manufactures and sells railcars and related parts and components, and provides railcar maintenance and modification services. Following the sale of THP, which was previously reported within All Other, we have combined the results of the prior Corporate and All Other groupings into a single Corporate and other grouping. The remaining activity previously reported in All Other primarily includes legal, environmental, and maintenance costs associated with non-operating facilities. Results of prior periods have been recast to reflect these changes and present results on a comparable basis.
Gains and losses from the sale of property, plant, and equipment are included in the operating profit of each respective segment. Our CODM regularly reviews the operating results of our reportable segments in order to assess performance and allocate resources. Our CODM does not consider restructuring activities when evaluating segment operating results; therefore, restructuring activities are not allocated to segment profit or loss.
Sales and related net profits ("deferred profit") from the Rail Products Group to the Leasing Group are recorded in the Rail Products Group and eliminated in consolidation and are reflected in "Eliminations − Lease subsidiary" in the tables below. Sales between these groups are recorded at prices comparable to those charged to external customers, taking into consideration quantity, features, and production demand. Amortization of deferred profit on railcars sold 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. Lease portfolio sales are included in the Leasing Group, with related gains and losses computed based on the net book value of the original manufacturing cost of the railcars.
The financial information for these segments is shown in the tables below (in millions).
Year Ended December 31, 2023
Railcar Leasing and Management Services GroupRail Products GroupCorporate and other
Eliminations – Lease Subsidiary
Eliminations – Other
Consolidated Total
External revenue$870.0 $2,113.3 $— $— $— $2,983.3 
Intersegment revenue0.9 589.7 — (589.7)(0.9)— 
Total revenues$870.9 $2,703.0 $— $(589.7)$(0.9)$2,983.3 
Depreciation & amortization$244.6 $43.7 $4.9 $— $— $293.2 
Capital expenditures$671.5 $37.1 $1.5 $— $— $710.1 
Year Ended December 31, 2022
Railcar Leasing and Management Services GroupRail Products GroupCorporate and other
Eliminations – Lease Subsidiary
Eliminations – Other
Consolidated Total
External revenue$769.8 $1,207.5 $— $— $— $1,977.3 
Intersegment revenue0.8 867.2 — (867.2)(0.8)— 
Total revenues$770.6 $2,074.7 $— $(867.2)$(0.8)$1,977.3 
Depreciation & amortization$236.4 $34.8 $5.2 $— $— $276.4 
Capital expenditures$928.8 $35.7 $2.3 $— $— $966.8 
Year Ended December 31, 2021
Railcar Leasing and Management Services GroupRail Products GroupCorporate and other
Eliminations – Lease Subsidiary
Eliminations – Other
Consolidated Total
External revenue$734.6 $781.4 $— $— $— $1,516.0 
Intersegment revenue0.7 483.4 — (478.5)(5.6)— 
Total revenues$735.3 $1,264.8 $— $(478.5)$(5.6)$1,516.0 
Depreciation & amortization$226.0 $33.6 $6.1 $— $— $265.7 
Capital expenditures$547.2 $21.3 $2.3 $— $— $570.8 
The reconciliation of segment operating profit to consolidated net income is as follows:
 Year Ended December 31,
 202320222021
 (in millions)
Operating profit:
Railcar Leasing and Management Services Group$428.5 $423.3 $350.9 
Rail Products Group129.4 59.1 4.7 
Segment Totals557.9 482.4 355.6 
Corporate and other(108.3)(80.8)(84.1)
Restructuring activities, net2.2 (1.0)3.7 
Eliminations – Lease Subsidiary(36.1)(65.2)(17.2)
Eliminations – Other1.3 (1.4)(1.2)
Consolidated operating profit417.0 334.0 256.8 
Other (income) expense268.0 207.5 201.6 
Provision (benefit) for income taxes9.0 27.6 15.9 
Income (loss) from discontinued operations, net of income taxes(13.4)(20.3)11.1 
Gain (loss) on sale of discontinued operations, net of income taxes— (5.7)131.4 
Net income$126.6 $72.9 $181.8 
Total assets for these segments is shown in the table below.
December 31, 2023December 31, 2022
(in millions)
Railcar Leasing and Management Services Group$7,895.7 $7,779.9 
Rail Products Group1,474.7 1,440.5 
Segment Totals9,370.4 9,220.4 
Corporate and other286.3 267.2 
Eliminations – Lease Subsidiary(750.2)(763.3)
Total assets$8,906.5 $8,724.3 
Corporate and other assets are composed of cash and cash equivalents, short-term marketable securities, notes receivable, certain property, plant, and equipment, and other assets.
We operate principally in North America. Our foreign operations are primarily located in Mexico. Revenues and operating profit for our Mexico operations for the years ended December 31, 2023, 2022, and 2021 were not significant in relation to the Consolidated Financial Statements. Total assets for our Mexico operations as of December 31, 2023 and 2022 were $590.0 million and $571.7 million, respectively. Total long-lived assets for our Mexico operations as of December 31, 2023 and 2022 were $96.1 million and $96.3 million, respectively.
One customer in the Rail Products Group comprised approximately 13%, 17%, and 22% of our consolidated revenues during the years ended December 31, 2023, 2022, and 2021, respectively.
Effective January 1, 2024, the Company modified its organizational structure to better leverage our maintenance services capabilities to support lease fleet optimization and to grow our services and parts businesses. The new structure will result in a change to our reportable segments beginning in 2024. In connection with this organizational update, we will align the maintenance services business, which is currently reported in the Rail Products Group, to be presented within our leasing business. This change aligns with the way in which our CODM will assess performance and allocate resources. Consequently, beginning January 1, 2024, we will report our operating results in two reportable segments: (1) Railcar Leasing and Services Group, formerly the Railcar Leasing and Management Services Group, and (2) Rail Products Group. These changes will have no impact to our previously reported consolidated results of operations, financial position, or cash flows. All prior period segment results will be recast to reflect these changes and present results on a comparable basis in future filings, beginning with our Quarterly Report on Form 10-Q for the three months ended March 31, 2024.