Operating Segments and Sales, Geographic and Credit Concentrations

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Operating Segments and Sales, Geographic and Credit Concentrations

Operating Segments and Sales, Geographic and Credit Concentrations

ARI operates in three reportable segments: manufacturing, railcar leasing and railcar services. These reportable segments are organized based upon a combination of the products and services offered and performance is evaluated based on revenues and segment earnings (loss) from operations. Intersegment revenues are accounted for as if sales were to third parties. The information in the following table is derived from the segments’ internal financial reports used by the Company’s management for purposes of assessing segment performance and for making decisions about allocation of resources.

	Revenues								Earnings (Loss) from Operations									Capital Expenditures		Depreciation & Amortization
	External		Intersegment			Total			External			Intersegment			Total
	(in thousands)
For the Year Ended December, 2013
Manufacturing	$	646,100	$	217,922		$	864,022		$	135,454		$	54,621		$	190,075		$	12,168	$	14,504
Railcar Leasing	31,871		—			31,871			14,836			40			14,876			162,068		9,799
Railcar Services	72,621		233			72,854			14,372			(47		)	14,325			5,925		2,506
Corporate	—		—			—			(13,755		)	—			(13,755		)	3,932		903
Eliminations	—		(218,155		)	(218,155		)	—			(54,614		)	(54,614		)	—		—
Total Consolidated	$	750,592	$	—		$	750,592		$	150,907		$	—		$	150,907		$	184,093	$	27,712
For the Year Ended December, 2012
Manufacturing	$	633,547	$	219,499		$	853,046		$	120,623		$	35,362		$	155,985		$	16,856	$	15,239
Railcar Leasing	13,444		—			13,444			7,371			29			7,400			185,918		4,424
Railcar Services	64,732		495			65,227			10,718			(99		)	10,619			965		2,903
Corporate	—		—			—			(17,292		)	—			(17,292		)	2,141		2,244
Eliminations	—		(219,994		)	(219,994		)	—			(35,292		)	(35,292		)	—		—
Total Consolidated	$	711,723	$	—		$	711,723		$	121,420		$	—		$	121,420		$	205,880	$	24,810
For the Year Ended December, 2011
Manufacturing	$	453,092	$	35,658		$	488,750		$	36,075		$	4,860		$	40,935		$	2,743	$	17,660
Railcar Leasing	1,075		—			1,075			239			20			259			29,444		505
Railcar Services	65,218		285			65,503			12,476			19			12,495			987		2,851
Corporate	—		—			—			(16,041		)	—			(16,041		)	2,472		1,850
Eliminations	—		(35,943		)	(35,943		)	—			(4,899		)	(4,899		)	—		—
Total Consolidated	$	519,385	$	—		$	519,385		$	32,749		$	—		$	32,749		$	35,646	$	22,866

Total Assets

	December 31,
	2013			2012		2011
	(in thousands)
Manufacturing	$	298,951		$	329,346	$	311,656
Railcar Leasing	478,000			263,228		46,073
Railcar Services	52,150			49,060		47,408
Corporate/Eliminations	(3,492		)	168,124		298,633
Total Consolidated	$	825,609		$	809,758	$	703,770

Geographic Concentrations

The Company’s operations are primarily located in the United States. The Company's foreign sales revenues were, in the aggregate, 2.0%, 0.9% and 1.2% of total consolidated revenues for 2013, 2012 and 2011, respectively. Total foreign assets were, in the aggregate, 1.5% and 2.6% of total consolidated assets as of December 31, 2013 and 2012, respectively.

Manufacturing Segment

Manufacturing consists of railcar manufacturing, and railcar and industrial component manufacturing. Intersegment revenues are determined based on an estimated fair market value of the railcars manufactured for the Company’s railcar leasing segment, as if such railcars had been sold to a third party. Revenues for railcars manufactured for the Company’s leasing segment are not recognized in consolidated revenues as railcar sales, but rather lease revenues are recognized over the term of the lease. Earnings from operations for manufacturing include an allocation of selling, general and administrative costs, as well as profit for railcars manufactured for the Company’s leasing segment based on revenue determined as described above.

Railcar Leasing Segment

Railcar leasing consists of railcars manufactured by the Company and leased to third parties under operating leases. In the first quarter of 2012, the Company began reporting the leasing business as a separate segment. To maintain comparability, 2011 amounts have been reclassified to separately present the leasing segment's results. Earnings (loss) from operations for railcar leasing include an allocation of selling, general and administrative costs and also reflect origination fees paid to ARL associated with originating the leases to the Company’s leasing customers. The origination fees represent a percentage of the revenues from the lease over its initial term and are paid up front.

Railcar Services Segment

Railcar services consist of railcar repair services, engineering and field services, and fleet management services. More specifically, such services include maintenance and shop planning, project management, tracking and tracing, regulatory compliance, mileage audit, rolling stock taxes, and online service access. Earnings (loss) from operations for railcar services include an allocation of selling, general and administrative costs.

Sales to Related Parties

As discussed in Note 19, ARI has numerous arrangements with related parties. As a result, from time to time, ARI offers its products and services to affiliates at terms and pricing no less favorable to ARI than the terms and pricing provided to unaffiliated third parties. Below is a summary of revenue from affiliates for each operating segment reflected as a percentage of total consolidated revenues.

	December 31,
	2013		2012		2011
Manufacturing	33.4	%	14.5	%	0.2	%
Railcar Leasing	—	%	—	%	—	%
Railcar Services	2.3	%	3.0	%	4.8	%

Sales and Credit Concentration

Manufacturing revenues from customers that accounted for more than 10.0% of total consolidated revenues are outlined in the table below. The railcar leasing and railcar services segments had no customers that accounted for more than 10% of the consolidated revenues for the years ended December 31, 2013, 2012 and 2011.

	December 31,
	2013		2012		2011
AEP	31.7	%	—	%	—	%
CIT Group, Inc.	24.4	%	49.4	%	33.5	%
Banc of America Leasing and Capital, LLC	—	%	—	%	11.8	%

Manufacturing accounts receivable from customers that accounted for more than 10.0% of consolidated receivables (including accounts receivable, net and accounts receivable, due from related parties) are outlined in the table below. The railcar leasing and railcar services segments had no customers that accounted for more than 10% of the consolidated receivables balance as of December 31, 2013 and 2012.

	December 31,
	2013		2012
Manufacturing receivables from significant customers	22.6	%	35.1	%