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Segment Information | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Segment Information | 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. Gains and losses from the sale of property, plant, and equipment are included in the operating profit of each respective segment. Our Chief Operating Decision Maker ("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). We operate principally in North America.
| Three Months Ended September 30, 2023
| Railcar Leasing and Management Services Group |  | Rail Products Group |  |  |  |  |  | Eliminations – Lease Subsidiary |  | Eliminations – Other |  | Consolidated Total
External revenue | $ | 222.3 |  |  | $ | 599.0 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 821.3 |
Intersegment revenue | 0.3 |  |  | 83.2 |  |  |  |  |  |  | (83.2) |  |  | (0.3) |  |  | — |
Total revenues | $ | 222.6 |  |  | $ | 682.2 |  |  |  |  |  |  | $ | (83.2) |  |  | $ | (0.3) |  |  | $ | 821.3 |
| Three Months Ended September 30, 2022
| Railcar Leasing and Management Services Group |  | Rail Products Group |  |  |  |  |  | Eliminations – Lease Subsidiary |  | Eliminations – Other |  | Consolidated Total
External revenue | $ | 194.6 |  |  | $ | 302.0 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 496.6 |
Intersegment revenue | 0.2 |  |  | 295.3 |  |  |  |  |  |  | (295.3) |  |  | (0.2) |  |  | — |
Total revenues | $ | 194.8 |  |  | $ | 597.3 |  |  |  |  |  |  | $ | (295.3) |  |  | $ | (0.2) |  |  | $ | 496.6 |
| Nine Months Ended September 30, 2023
| Railcar Leasing and Management Services Group |  | Rail Products Group |  |  |  | Eliminations – Lease Subsidiary |  | Eliminations – Other |  | Consolidated Total
External revenue | $ | 648.6 |  |  | $ | 1,536.8 |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 2,185.4 |
Intersegment revenue | 0.7 |  |  | 492.2 |  |  |  |  | (492.2) |  |  | (0.7) |  |  | — |
Total revenues | $ | 649.3 |  |  | $ | 2,029.0 |  |  |  |  | $ | (492.2) |  |  | $ | (0.7) |  |  | $ | 2,185.4 |
| Nine Months Ended September 30, 2022
| Railcar Leasing and Management Services Group |  | Rail Products Group |  |  |  | Eliminations – Lease Subsidiary |  | Eliminations – Other |  | Consolidated Total
External revenue | $ | 572.6 |  |  | $ | 813.5 |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 1,386.1 |
Intersegment revenue | 0.6 |  |  | 605.5 |  |  |  |  | (605.5) |  |  | (0.6) |  |  | — |
Total revenues | $ | 573.2 |  |  | $ | 1,419.0 |  |  |  |  | $ | (605.5) |  |  | $ | (0.6) |  |  | $ | 1,386.1 |
The reconciliation of segment operating profit to consolidated net income is as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (in millions)
Operating profit: |  |  |  |  |  |  |
Railcar Leasing and Management Services Group | $ | 88.6 |  |  | $ | 107.9 |  |  | $ | 292.6 |  |  | $ | 293.2 |
Rail Products Group | 39.2 |  |  | 26.0 |  |  | 88.2 |  |  | 40.5 |
Segment Totals | 127.8 |  |  | 133.9 |  |  | 380.8 |  |  | 333.7 |
Corporate and other | (25.2) |  |  | (21.4) |  |  | (82.8) |  |  | (62.2) |
Restructuring activities, net | — |  |  | — |  |  | 2.2 |  |  | (1.0) |
Eliminations – Lease Subsidiary | (2.4) |  |  | (19.6) |  |  | (32.3) |  |  | (48.7) |
Eliminations – Other | — |  |  | (0.2) |  |  | 0.4 |  |  | (1.3) |
Consolidated operating profit | 100.2 |  |  | 92.7 |  |  | 268.3 |  |  | 220.5 |
Other (income) expense | 67.9 |  |  | 54.4 |  |  | 199.8 |  |  | 147.0 |
Provision (benefit) for income taxes | 6.0 |  |  | 8.6 |  |  | 1.9 |  |  | 17.4 |
Loss from discontinued operations, net of income taxes | (2.7) |  |  | (3.4) |  |  | (8.1) |  |  | (13.7) |
Loss on sale of discontinued operations, net of income taxes | — |  |  | — |  |  | — |  |  | (5.7) |
Net income | $ | 23.6 |  |  | $ | 26.3 |  |  | $ | 58.5 |  |  | $ | 36.7 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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