Equity Investment

3 Months Ended

Dec. 31, 2012

Schedule of Equity Method Investments [Line Items]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

EQUITY INVESTMENT:

RailAmerica, Inc.

On October 1, 2012, the Company acquired 100% of RailAmerica's outstanding shares for cash at a price of $27.50 per share and in connection with such acquisition, the Company repaid RailAmerica's term loan and revolving credit facility (see Note 3, Changes in Operations). The shares of RailAmerica were held in a voting trust while the STB considered the Company's control application, which application was approved with an effective date of December 28, 2012. Accordingly, the Company accounted for the earnings of RailAmerica using the equity method of accounting while the shares were held in the voting trust and the Company's preliminary allocation of the purchase price to the acquired assets and assumed liabilities was included in the Company's consolidated balance sheet at December 31, 2012.

In accordance with U.S. GAAP, a new accounting basis was established for RailAmerica on October 1, 2012 for its stand-alone financial statements. The Company recognized $15.6 million ($15.8 million of net income reported by RailAmerica less $0.2 million to eliminate activity between RailAmerica and G&W) of net income from the equity investment in RailAmerica during the three months ended December 31, 2012, which was reported in the Company's consolidated statements of operations under the caption Income from equity investment in RailAmerica, net. The income from equity investment included $3.5 million of after-tax acquisition/integration costs incurred by RailAmerica in the three months ended December 31, 2012.

The following condensed consolidated financial data of RailAmerica is based on U.S. GAAP:

RAILAMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEET

(dollars in thousands)

	December 28, 2012
ASSETS
CURRENTS ASSETS	$	270,560
PROPERTY AND EQUIPMENT, net	1,588,612
GOODWILL	474,115
INTANGIBLE ASSETS, net	446,327
OTHER ASSETS, net	116
Total assets	$	2,779,730
LIABILITIES AND EQUITY
CURRENT LIABILITIES	$	136,717
LONG-TERM DEBT, less current portion	10,410
DEFERRED INCOME TAX LIABILITIES, net	551,856
OTHER LONG-TERM LIABILITIES	19,618
COMMITMENTS AND CONTINGENCIES	—
TOTAL RAILAMERICA, INC. STOCKHOLDERS' EQUITY	2,055,604
NONCONTROLLING INTEREST	5,525
Total equity	2,061,129
Total liabilities and equity	$	2,779,730

RAILAMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS

(dollars in thousands)

	Period from October 1, 2012 (Acquisition) to December 28, 2012
OPERATING REVENUES	$	151,065
OPERATING EXPENSES	124,928
INCOME FROM OPERATIONS	26,137
INTEREST EXPENSE	(90		)
OTHER INCOME	9
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	26,056
PROVISION FOR INCOME TAXES	10,250
INCOME FROM CONTINUING OPERATIONS	15,806
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	—
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	15,806

RAILAMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME

(dollars in thousands)

	Period from October 1, 2012 (Acquisition) to December 28, 2012
NET INCOME	$	15,806
OTHER COMPREHENSIVE INCOME/(LOSS):
Foreign currency translation adjustment	(2,150		)
Actuarial gain associated with pension and postretirement benefit plans, net of tax provision of $53	166
Other comprehensive loss	(1,984		)
COMPREHENSIVE INCOME	$	13,822

RAILAMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS

(dollars in thousands)

	Period from October 1, 2012 (Acquisition)  to  December 28, 2012
NET CASH PROVIDED BY OPERATING ACTIVITIES	$	41,897
NET CASH USED IN INVESTING ACTIVITIES	(19,804		)
NET CASH USED IN FINANCING ACTIVITIES	(144		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(129		)
INCREASE IN CASH AND CASH EQUIVALENTS	21,820
CASH AND CASH EQUIVALENTS, beginning of period	86,102
CASH AND CASH EQUIVALENTS, end of period	$	107,922