Segment Information

12 Months Ended

Dec. 31, 2011

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

Segment Information

Note 4. Segment Information

The Company reports operating results in five principal business segments: (1) the Rail Group, which manufactures and sells railcars and related parts and components; (2) the Construction Products Group, which manufactures and sells highway products and concrete and aggregates; (3) the Inland Barge Group, which manufactures and sells barges and related products for inland waterway services; (4) the Energy Equipment Group, which manufactures and sells products for energy related businesses, including structural wind towers, tank containers and tank heads for pressure and non-pressure vessels, frac tanks, and utility, traffic, and lighting structures; and (5) the Railcar Leasing and Management Services Group (“Leasing Group”), which provides fleet management, maintenance, and leasing services. The segment All Other includes our captive insurance and transportation companies; legal, environmental, and maintenance costs associated with non-operating facilities; other peripheral businesses; and the change in market valuation related to ineffective commodity hedges. Gains and losses from the sale of property, plant, and equipment which are related to manufacturing and dedicated to the specific manufacturing operations of a particular segment are included in operating profit of that respective segment. Gains and losses from the sale of property, plant, and equipment which can be utilized by multiple segments are included in operating profit of the All Other segment.

Sales and related net profits from the Rail Group to the Leasing Group are recorded in the Rail Group and eliminated in consolidation. 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 profits of the Leasing Group. Sales of railcars from the lease fleet are included in the Leasing Group. Revenue and operating profit of the Leasing Group for the years ended December 31, 2011 and 2010 include the operating results of TRIP Holdings. Total assets of the Leasing Group include the assets of TRIP Holdings as of December 31, 2011 and 2010. See Note 1 Summary of Significant Accounting Policies – Principles of Consolidation for further discussion.

The financial information for these segments is shown in the tables below. We operate principally in North America.

Year Ended December 31, 2011

	Revenues								Operating Profit (Loss)						Depreciation  & Amortization			Capital Expenditures
	External		Intersegment			Total						Assets
	(in millions)
Rail Group	$	931.7	$	343.0		$	1,274.7		$	77.3		$	684.6		$	23.9		$	11.4
Construction Products Group		577.2		12.9			590.1			53.4			403.2			20.7			12.1
Inland Barge Group		548.5		—			548.5			106.4			189.2			6.4			38.0	(1)
Energy Equipment Group		454.8		18.0			472.8			8.9			392.9			18.4			10.4
Railcar Leasing and Management Services Group		551.4		0.6			552.0			254.5			4,462.1			115.7			258.6
All Other		11.5		50.3			61.8			(3.8	)		30.5			4.4			4.0
Corporate		—		—			—			(43.6	)		512.9			3.6			5.5
Eliminations-Lease subsidiary		—		(325.5	)		(325.5	)		(28.3	)		(440.3	)		—			—
Eliminations – Other		—		(99.3	)		(99.3	)		0.5			(114.1	)		(0.2	)		—
Consolidated Total	$	3,075.1	$	—		$	3,075.1		$	425.3		$	6,121.0		$	192.9		$	340.0

Year Ended December 31, 2010

									Operating
	Revenues								Profit						Depreciation &			Capital
	External		Intersegment			Total			(Loss)			Assets			Amortization			Expenditures
	(in millions)
Rail Group	$	289.7	$	232.4		$	522.1		$	1.5		$	482.9		$	24.0		$	4.0
Construction Products Group		558.3		20.5			578.8			47.4			335.2			23.7			5.5
Inland Barge Group		422.3		—			422.3			69.0			94.5			5.5			14.6	(1)
Energy Equipment Group		408.5		11.1			419.6			35.1			352.4			17.1			8.1
Railcar Leasing and Management Services Group		464.5		—			464.5			207.0			4,452.6			112.6			213.8
All Other		12.2		36.3			48.5			(11.4	)		27.5			3.6			4.2
Corporate		—		—			—			(33.8	)		538.5			3.4			4.6
Eliminations-Lease subsidiary		—		(216.8	)		(216.8	)		(8.4	)		(522.1	)		—			—
Eliminations – Other		—		(83.5	)		(83.5	)		(2.6	)		(1.5	)		(0.3	)		—
Consolidated Total	$	2,155.5	$	—		$	2,155.5		$	303.8		$	5,760.0		$	189.6		$	254.8

(1) Primarily related to repair and replacement of property, plant and equipment at the Company’s inland barge manufacturing facilities in Missouri and Tennessee. See Note 8 – Property, Plant, and Equipment.

Year Ended December 31, 2009

	Revenues								Operating Profit (Loss)						Depreciation  & Amortization			Capital Expenditures
	External		Intersegment			Total						Assets
	(in millions)
Rail Group	$	485.2	$	410.1		$	895.3		$	(355.9	)	$	450.7		$	25.0		$	19.6
Construction Products Group		524.0		14.5			538.5			32.6			277.3			23.5			11.6
Inland Barge Group		527.3		—			527.3			125.2			69.4			6.1			1.3
Energy Equipment Group		502.2		7.8			510.0			73.8			242.0			16.9			9.1
Railcar Leasing and Management Services Group		370.2		—			370.2			149.0			3,167.3			82.4			343.0
All Other		12.0		36.4			48.4			0.8			27.6			3.1			2.0
Corporate		—		—			—			(30.8	)		753.1			4.2			3.8
Eliminations-Lease subsidiary		—		(391.6	)		(391.6	)		(22.6	)		(329.0	)		—			—
Eliminations – Other		—		(77.2	)		(77.2	)		(3.0	)		(2.0	)		(0.4	)		—
Consolidated Total	$	2,420.9	$	—		$	2,420.9		$	(30.9	)	$	4,656.4		$	160.8		$	390.4

Effective December 31, 2011, the Company adopted the emerging industry policy of recognizing revenue from the sales of railcars from the lease fleet on a gross basis in leasing revenues and cost of revenues if the railcar has been owned by the lease fleet for one year or less at the time of sale. Sales of railcars from the lease fleet which have been owned by the lease fleet for more than one year are recognized as a net gain or loss from the disposal of a long-term asset. Prior year reported balances have been reclassified to conform to this policy. See Note 1 of the Notes to Consolidated Financial Statements.

Corporate assets are composed of cash and cash equivalents, short-term marketable securities, notes receivable, certain property, plant, and equipment, and other assets. Capital expenditures do not include business acquisitions.

Externally reported revenues and operating profit for our Mexico operations for the years ended December 31, 2011, 2010, and 2009 are presented below:

	External Revenues						Operating Profit
	Year Ended December 31,						Year Ended December 31,
	2011		2010		2009		2011			2010	2009
	(in millions)
Mexico	$	123.0	$	98.3	$	86.8	$	18.4	$3.4		$	15.2

Total assets and long-lived assets for our Mexico operations as of December 31, 2011 and 2010 are presented below:

	Total Assets				Long-Lived Assets
	December 31,
	2011		2010		2011		2010
	(in millions)
Mexico	$	240.4	$	288.8	$	143.2	$	151.7