Railcar Leasing and Management Services Group (Tables)

9 Months Ended

Sep. 30, 2011

Segment Information / Railcar Leasing and Management Services Group [Abstract]

Consolidating financial information

September 30, 2011

Leasing Group

Wholly-
Owned

TRIP

Manufacturing/

Subsidiaries

Holdings

Corporate

Total

(in millions, unaudited)

Cash, cash equivalents, and short-term marketable securities

4.2

—

268.6

272.8

Property, plant, and equipment, net

3,104.5

1,157.9

510.8

4,773.2

Net deferred profit on railcars sold to the Leasing Group

(351.5

)

(190.7

)

—

(542.2

)

2,753.0

967.2

510.8

4,231.0

Restricted cash

167.9

61.5

—

229.4

Debt:

Recourse

104.6

—

454.4

559.0

Less: unamortized discount

—

(102.7

)

(102.7

)

104.6

—

351.7

456.3

Non-recourse

1,602.3

1,025.3

—

2,627.6

Less: non-recourse debt owned by Trinity

—

(112.0

)

—

(112.0

)

Total debt

1,706.9

913.3

351.7

2,971.9


	December 31, 2010
	Leasing Group
	Wholly- Owned			TRIP			Manufacturing/
	Subsidiaries			Holdings			Corporate			Total
				(in millions)
Cash, cash equivalents, and short-term marketable securities	$	3.8		$	—		$	508.2		$	512.0

Property, plant, and equipment, net	$	2,965.4		$	1,191.8		$	491.4		$	4,648.6
Net deferred profit on railcars sold to the Leasing Group		(340.4	)		(196.2	)		—			(536.6	)

	$	2,625.0		$	995.6		$	491.4		$	4,112.0

Restricted cash	$	161.1		$	46.0		$	—		$	207.1

Debt:
Recourse	$	108.6		$	—		$	452.8		$	561.4
Less: unamortized discount		—			—			(111.1	)		(111.1	)

		108.6			—			341.7			450.3
Non-recourse		1,453.5			1,003.9			—			2,457.4

Total debt	$	1,562.1		$	1,003.9		$	341.7		$	2,907.7

Investment in TRIP Holdings and TRIP Holdings' debt


	Three Months Ended September 30,									Nine Months Ended September 30,
	2011			2010			Percent			2011			2010			Percent
	($ in millions)						Change			($ in millions)						Change
Revenues:
Wholly owned subsidiaries:
Leasing and management	$	94.6		$	86.1			9.9	%	$	277.8		$	256.2			8.4	%
Sales of cars from the lease fleet		28.9			7.2			⁽¹⁾			39.6			18.8			⁽¹⁾

		123.5			93.3			32.4			317.4			275.0			15.4
TRIP Holdings:
Leasing and management		29.2			28.8			1.4			87.4			87.0			0.5
Sales of cars from the lease fleet		0.4			—			⁽¹⁾			8.5			0.9			⁽¹⁾

		29.6			28.8			2.8			95.9			87.9			9.1

Total revenues	$	153.1		$	122.1			25.4		$	413.3		$	362.9			13.9

Operating Profit:
Wholly owned subsidiaries:
Leasing and management	$	40.3		$	34.3					$	116.3		$	94.9
Sales of cars from the lease fleet		6.5			2.3						10.9			4.5

		46.8			36.6						127.2			99.4
TRIP Holdings:
Leasing and management		17.4			16.3						51.3			50.9
Sales of cars from the lease fleet		—			—						0.1			—

		17.4			16.3						51.4			50.9

Total operating profit	$	64.2		$	52.9					$	178.6		$	150.3

Operating profit margin:
Leasing and management		46.6	%		44.0	%					45.9	%		42.5	%
Sales of cars from the lease fleet		22.2			31.9						22.9			22.8
Total operating profit margin		41.9			43.3						43.2			41.4

Interest and rent expense⁽²⁾:
Rent expense	$	12.1		$	12.2					$	36.4		$	36.5
Interest expense
Wholly-owned subsidiaries	$	24.8		$	21.6					$	75.4		$	67.2
TRIP Holdings:
External		15.3			11.7						37.6			35.3
Intercompany		3.2			—						3.2			—

		18.5		$	11.7						40.8		$	35.3

Total interest expense	$	43.3		$	33.3					$	116.2		$	102.5

Future contractual minimum rental revenues on leases


	Remaining three
	months
	of 2011		2012		2013		2014		2015		Thereafter		Total
					(in millions)
Wholly-owned subsidiaries	$	66.5	$	239.9	$	191.8	$	141.6	$	108.9	$	245.8	$	994.5
TRIP Holdings		26.4		91.5		60.8		40.2		33.3		83.3		335.5

	$	92.9	$	331.4	$	252.6	$	181.8	$	142.2	$	329.1	$	1,330.0

Future operating lease obligations and future contractual minimum rental revenues related to these leases


	Remaining
	three months of 2011		2012		2013		2014		2015		Thereafter		Total
					(in millions)
Future operating lease obligations of Trusts’ railcars	$	10.6	$	44.5	$	45.7	$	44.9	$	43.2	$	382.0	$	570.9
Future contractual minimum rental revenues of Trusts’ railcars	$	15.2	$	53.2	$	37.5	$	23.5	$	17.7	$	33.9	$	181.0

Future contractual minimum rental revenues related to operating leases other than leases with the Trusts


	Remaining
	three months of 2011		2012		2013		2014		2015		Thereafter		Total
					(in millions)
Future operating lease obligations	$	1.4	$	5.6	$	5.3	$	5.2	$	5.2	$	16.1	$	38.8
Future contractual minimum rental revenues	$	1.4	$	5.2	$	4.2	$	3.7	$	2.8	$	7.0	$	24.3

- Definition

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

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