Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2016

Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract]

Carrying amounts of assets and liabilities of consolidated VIE

Variable Interest Entities

In prior periods, we were the primary beneficiary of one of our variable interest entities, a structured lease financing of a portfolio of railcars, because we had the power to direct its significant activities. As a result, we consolidated this variable interest entity. During the third quarter of 2016, the Company took full ownership of all assets, repaid the associated debt, and dissolved this entity.

The following table shows the carrying amounts of assets and liabilities of the consolidated variable interest entity (in millions):

	September 30 2016		December 31 2015
Operating assets, net of accumulated depreciation (1)	$	—	$	83.2
Nonrecourse debt	—		6.9

_________

(1) All operating assets were pledged as collateral on the nonrecourse debt.

We determined that we are not the primary beneficiary of our other variable interest entities, which are primarily investments in aircraft spare engine leasing affiliates that were financed through a variety of equity investments and third-party lending arrangements. We are not the primary beneficiary of these variable interest entities because we do not have the power to direct the activities that most significantly impact the entities’ economic performance. Rather, that power was shared by the affiliate partners based on the terms of the relevant joint venture agreements, which require approval of all partners for significant decisions regarding the variable interest entity.

Carrying amounts and maximum exposure to loss for non consolidated VIEs

The following table shows the carrying amounts and maximum exposure to loss for our unconsolidated variable interest entities (in millions):

	September 30, 2016				December 31, 2015
	Net Carrying Amount		Maximum Exposure to Loss		Net Carrying Amount		Maximum Exposure to Loss
Investments in affiliates	$	176.4	$	176.4	$	161.2	$	161.2
Other investment	0.1		0.1		0.2		0.2
Total	$	176.5	$	176.5	$	161.4	$	161.4