Segment Information

3 Months Ended

Mar. 31, 2012

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

Segment Information

Note 3. 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 that 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.

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

Three Months Ended March 31, 2012

	Revenues								Operating
									Profit
	External		Intersegment			Total			(Loss)
	(in millions)
Rail Group	$	341.2	$	125.9		$	467.1		$	40.1
Construction Products Group		149.6		5.4			155.0			10.8
Inland Barge Group		169.4		—			169.4			30.0
Energy Equipment Group		120.1		4.9			125.0			(3.8	)
Railcar Leasing and Management Services Group		142.1		0.2			142.3			66.5
All Other		2.9		12.8			15.7			1.2
Corporate		—		—			—			(11.6	)
Eliminations – Lease subsidiary		—		(122.6	)		(122.6	)		(10.9	)
Eliminations – Other		—		(26.6	)		(26.6	)		0.1
Consolidated Total	$	925.3	$	—		$	925.3		$	122.4

Three Months Ended March 31, 2011

	Revenues								Operating
									Profit
	External		Intersegment			Total			(Loss)
	(in millions)
Rail Group	$	131.0	$	88.8		$	219.8		$	9.3
Construction Products Group		130.1		3.5			133.6			8.3
Inland Barge Group		137.9		—			137.9			21.7
Energy Equipment Group		113.2		5.5			118.7			10.5
Railcar Leasing and Management Services Group		119.8		—			119.8			54.7
All Other		2.2		10.9			13.1			(0.3	)
Corporate		—		—			—			(10.7	)
Eliminations – Lease subsidiary		—		(85.4	)		(85.4	)		(8.1	)
Eliminations – Other		—		(23.3	)		(23.3	)		0.1
Consolidated Total	$	634.2	$	—		$	634.2		$	85.5

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.