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Investments in Affiliated Companies (Tables)
 12 Months Ended
Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]  
Significant Investments in Affiliated Companies, by Segment
The following table presents our investments in affiliated companies and our ownership percentage in those companies by segment as of December 31, 2017 (in millions):
 
Segment
 
Investment
 
Percentage
Ownership
Rolls-Royce & Partners Finance (1)
Portfolio Management
 
$
434.2

 
50.0
%
Adler Funding LLC
Rail North America
 
6.5

 
12.5
%
Southern Capital Corporation LLC
Rail North America
 
0.3

 
50.0
%
Investments in Affiliated Companies
 
 
$
441.0

 
 
__________
(1) Combined investment balances of sixteen separate joint ventures (collectively, the "RRPF affiliates")
Equity Method Investments, Earnings by Segment
The following table shows our share of affiliates’ pre-tax income by segment for the years ending December 31 (in millions):
 
2017
 
2016
 
2015
Rail North America (1)
$
(2.4
)
 
$
0.5

 
$
0.5

Rail International
(0.1
)
 
(0.2
)
 
(0.3
)
Portfolio Management (2)
58.4

 
52.8

 
45.2

Share of affiliates' pre-tax income
55.9

 
53.1

 
45.4

Income taxes
(12.0
)
 
(5.7
)
 
0.5

Share of Affiliates' Income
$
43.9

 
$
47.4

 
$
45.9
Equity method Investments, Investments and Distributions
The following table shows our cash investments in and distributions and loan payments from our affiliates by segment for the years ended December 31 (in millions):
 
Cash Investments
 
Cash Distributions (1)
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Rail North America
$
—

 
$
—

 
$
—

 
$
0.7

 
$
1.5

 
$
5.1

Portfolio Management
36.6

 
25.0

 
15.5

 
30.2

 
35.2

 
32.2

Total
$
36.6

 
$
25.0

 
$
15.5

 
$
30.9

 
$
36.7

 
$
37.3
Equity Method Investments, Guarantees

Investments in affiliated companies represent investments in and loans to domestic and foreign affiliates, and primarily include entities that lease aircraft spare engines, as well as companies offering lease financing and related services for customers operating rail assets. Loan amounts included in investments in affiliated companies were $6.5 million as of December 31, 2017 and $9.7 million as of December 31, 2016.

During 2017, we recorded an impairment loss of $3.0 million to reflect a decline in the value of the railcars remaining in the Adler fleet.

In 2015, as a result of our decision to exit the majority of our marine investments within our Portfolio Management segment, we recorded a $19.0 million impairment loss and then sold our 50% interest in the Cardinal Marine joint venture. We received aggregate cash proceeds of $24.7 million from this sale. In 2016 and 2017, we recognized gains of $1.0 million and $1.1 million resulting from additional contingent proceeds received as part of the sale.

The following table presents our investments in affiliated companies and our ownership percentage in those companies by segment as of December 31, 2017 (in millions):
 
Segment
 
Investment
 
Percentage
Ownership
Rolls-Royce & Partners Finance (1)
Portfolio Management
 
$
434.2

 
50.0
%
Adler Funding LLC
Rail North America
 
6.5

 
12.5
%
Southern Capital Corporation LLC
Rail North America
 
0.3

 
50.0
%
Investments in Affiliated Companies
 
 
$
441.0

 
 
__________
(1) Combined investment balances of sixteen separate joint ventures (collectively, the "RRPF affiliates").

The following table shows our share of affiliates’ pre-tax income by segment for the years ending December 31 (in millions):
 
2017
 
2016
 
2015
Rail North America (1)
$
(2.4
)
 
$
0.5

 
$
0.5

Rail International
(0.1
)
 
(0.2
)
 
(0.3
)
Portfolio Management (2)
58.4

 
52.8

 
45.2

Share of affiliates' pre-tax income
55.9

 
53.1

 
45.4

Income taxes
(12.0
)
 
(5.7
)
 
0.5

Share of Affiliates' Income
$
43.9

 
$
47.4

 
$
45.9


__________
(1) Amount for 2017 is net of impairment losses of $3.0 million.
(2) Amount for 2015 is net of impairment losses of $19.0 million.

The following table shows our cash investments in and distributions and loan payments from our affiliates by segment for the years ended December 31 (in millions):
 
Cash Investments
 
Cash Distributions (1)
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Rail North America
$
—

 
$
—

 
$
—

 
$
0.7

 
$
1.5

 
$
5.1

Portfolio Management
36.6

 
25.0

 
15.5

 
30.2

 
35.2

 
32.2

Total
$
36.6

 
$
25.0

 
$
15.5

 
$
30.9

 
$
36.7

 
$
37.3


__________
(1) Cash distributions exclude proceeds from sales of affiliates of $2.3 million in 2017, $1.0 million in 2016, and $24.7 million in 2015.

Summarized Financial Data of Affiliates

The following table shows the aggregated operating results for the years ended December 31 for the affiliated companies we held at December 31 (in millions):
 
2017
 
2016
 
2015
Revenues
$
350.7

 
$
333.7

 
$
339.3

Net gains on sales of assets
27.4

 
23.6

 
37.6

Net income
100.4

 
99.3

 
121.4



The following table shows aggregated summarized balance sheet data for our affiliated companies as of December 31 (in millions):
 
2017
 
2016
Current assets
$
144.8

 
$
254.1

Noncurrent assets
3,847.2

 
3,363.6

Total assets
$
3,992.0

 
$
3,617.7

 
 
 
 
Current liabilities
$
446.8

 
$
551.0

Noncurrent liabilities
2,704.9

 
2,341.4

Shareholders’ equity
840.3

 
725.3

Total liabilities and shareholders' equity
$
3,992.0

 
$
3,617.7



Summarized Financial Data for the RRPF Affiliates

As noted above, our affiliate investments include 50% interests in each of the RRPF affiliates, a group of sixteen domestic and foreign joint ventures with Rolls-Royce plc (or affiliates thereof, collectively “Rolls-Royce”), a leading manufacturer of commercial aircraft jet engines. The RRPF affiliates are primarily engaged in two business activities: lease financing of aircraft spare engines to a diverse group of commercial aircraft operators worldwide and lease financing of aircraft spare engines to Rolls-Royce for use in their engine maintenance programs. In aggregate, the RRPF affiliates owned 432 aircraft engines at December 31, 2017, of which 229 were on lease to Rolls-Royce. Aircraft engines are generally depreciated over a useful life of 25 years to an estimated residual value. Lease terms vary but typically range from 3 to 12 years. Rolls-Royce manages each of the RRPF affiliates and also performs substantially all required maintenance activities. Our share of affiliates' earnings (after-tax) from the RRPF affiliates was $44.8 million in 2017, $46.6 million in 2016, and $58.4 million in 2015.

We derived the following financial information from the combined financial statements of the RRPF affiliates.

The following table shows condensed income statements of the RRPF affiliates for the years ending December 31 (in millions):
 
2017
 
2016
 
2015
Lease revenue from third parties
$
168.8

 
$
173.7

 
$
191.4

Lease revenue from Rolls-Royce
176.0

 
150.2

 
138.7

Depreciation expense
(176.4
)
 
(171.6
)
 
(166.1
)
Interest expense
(64.3
)
 
(59.2
)
 
(56.7
)
Other expenses
(8.9
)
 
(8.0
)
 
(8.8
)
Net gains on sales of assets
20.5

 
19.1

 
33.1

Income before income taxes
115.7

 
104.2

 
131.6

Income tax benefits (provision) (1)
(13.2
)
 
(6.9
)
 
(9.0
)
Net income
$
102.5

 
$
97.3

 
$
122.6

_________
(1)
Represents income taxes directly attributable to the RRPF affiliates in the United Kingdom. Several of the RRPF affiliates are disregarded entities for income tax purposes and, as a result, income taxes are incurred at the shareholder level. Amounts shown for 2016 and 2015 are net of income tax benefits of approximately $7.8 million and $15.4 million, attributable to statutory rate decreases enacted in the United Kingdom.

The following table shows the condensed balance sheets of the RRPF affiliates as of December 31 (in millions):
  
2017
 
2016
Current assets
$
135.3

 
$
241.3

Noncurrent assets, including operating assets, net of accumulated depreciation of $943.5 and $1,007.4 (a)
3,772.4

 
3,281.9

Total assets
$
3,907.7

 
$
3,523.2

 
 
 
 
Current liabilities, excluding debt
$
53.9

 
$
127.3

Debt obligations, net of adjustments for hedges
2,751.1

 
2,452.9

Other liabilities
274.1

 
233.8

Shareholders’ equity
828.6

 
709.2

Total liabilities and shareholders' equity
$
3,907.7

 
$
3,523.2

_________
(a) All operating assets were pledged as collateral for long-term debt obligations.

The following table shows contractual future lease receipts from noncancelable leases of the RRPF affiliates as of December 31, 2017 (in millions):
 
Rolls-Royce
 
Third Parties
 
Total
2018
$
210.2

 
$
153.2

 
$
363.4

2019
203.4

 
129.1

 
332.5

2020
185.2

 
113.9

 
299.1

2021
158.9

 
93.1

 
252.0

2022
148.6

 
79.7

 
228.3

Thereafter
465.9

 
214.0

 
679.9

Total
$
1,372.2

 
$
783.0

 
$
2,155.2



The following table shows maturities of debt obligations of the RRPF affiliates as of December 31, 2017 (in millions):
2018 (1)
$
389.4

2019
81.3

2020
494.7

2021
584.4

2022
310.0

Thereafter
894.0

Total debt principal (2)
$
2,753.8

_______
(1) Includes $320.5 million related to bridge financing that is expected to be repaid and replaced by long-term financing in April, 2018.
(2) All debt obligations are nonrecourse to the shareholders.
Equity Method Investments, Summarized Financial Data
The following table shows the aggregated operating results for the years ended December 31 for the affiliated companies we held at December 31 (in millions):
 
2017
 
2016
 
2015
Revenues
$
350.7

 
$
333.7

 
$
339.3

Net gains on sales of assets
27.4

 
23.6

 
37.6

Net income
100.4

 
99.3

 
121.4



The following table shows aggregated summarized balance sheet data for our affiliated companies as of December 31 (in millions):
 
2017
 
2016
Current assets
$
144.8

 
$
254.1

Noncurrent assets
3,847.2

 
3,363.6

Total assets
$
3,992.0

 
$
3,617.7

 
 
 
 
Current liabilities
$
446.8

 
$
551.0

Noncurrent liabilities
2,704.9

 
2,341.4

Shareholders’ equity
840.3

 
725.3

Total liabilities and shareholders' equity
$
3,992.0

 
$
3,617.7
Schedule of Future Minimum Lease Payments Receivable
The following table shows our future contractual receipts from finance leases and noncancelable operating leases as of December 31, 2017 (in millions):
 
 
Finance Leases
 
Operating Leases (1)
 
Total
2018
$
21.1

 
$
947.7

 
$
968.8

2019
21.1

 
755.8

 
776.9

2020
20.6

 
589.9

 
610.5

2021
19.9

 
424.8

 
444.7

2022
28.8

 
302.8

 
331.6

Years thereafter
28.8

 
524.8

 
553.6

 
$
140.3

 
$
3,545.8

 
$
3,686.1
Schedule of Maturities of Debt Obligations
The following table shows the scheduled principal payments of our debt obligations as of December 31, 2017 (in millions):
2018
$
336.6

2019
550.0

2020
350.0

2021
566.0

2022
250.0

Thereafter
2,360.0

Total debt principal
$
4,412.6
RRPF Joint Ventures [Member]  
Schedule of Equity Method Investments [Line Items]  
Equity Method Investments, Summarized Financial Data

The following table shows condensed income statements of the RRPF affiliates for the years ending December 31 (in millions):
 
2017
 
2016
 
2015
Lease revenue from third parties
$
168.8

 
$
173.7

 
$
191.4

Lease revenue from Rolls-Royce
176.0

 
150.2

 
138.7

Depreciation expense
(176.4
)
 
(171.6
)
 
(166.1
)
Interest expense
(64.3
)
 
(59.2
)
 
(56.7
)
Other expenses
(8.9
)
 
(8.0
)
 
(8.8
)
Net gains on sales of assets
20.5

 
19.1

 
33.1

Income before income taxes
115.7

 
104.2

 
131.6

Income tax benefits (provision) (1)
(13.2
)
 
(6.9
)
 
(9.0
)
Net income
$
102.5

 
$
97.3

 
$
122.6

_________
(1)
Represents income taxes directly attributable to the RRPF affiliates in the United Kingdom. Several of the RRPF affiliates are disregarded entities for income tax purposes and, as a result, income taxes are incurred at the shareholder level. Amounts shown for 2016 and 2015 are net of income tax benefits of approximately $7.8 million and $15.4 million, attributable to statutory rate decreases enacted in the United Kingdom.

The following table shows the condensed balance sheets of the RRPF affiliates as of December 31 (in millions):
  
2017
 
2016
Current assets
$
135.3

 
$
241.3

Noncurrent assets, including operating assets, net of accumulated depreciation of $943.5 and $1,007.4 (a)
3,772.4

 
3,281.9

Total assets
$
3,907.7

 
$
3,523.2

 
 
 
 
Current liabilities, excluding debt
$
53.9

 
$
127.3

Debt obligations, net of adjustments for hedges
2,751.1

 
2,452.9

Other liabilities
274.1

 
233.8

Shareholders’ equity
828.6

 
709.2

Total liabilities and shareholders' equity
$
3,907.7

 
$
3,523.2

_________
(a) All operating assets were pledged as collateral for long-term debt obligations.
Schedule of Future Minimum Lease Payments Receivable
The following table shows contractual future lease receipts from noncancelable leases of the RRPF affiliates as of December 31, 2017 (in millions):
 
Rolls-Royce
 
Third Parties
 
Total
2018
$
210.2

 
$
153.2

 
$
363.4

2019
203.4

 
129.1

 
332.5

2020
185.2

 
113.9

 
299.1

2021
158.9

 
93.1

 
252.0

2022
148.6

 
79.7

 
228.3

Thereafter
465.9

 
214.0

 
679.9

Total
$
1,372.2

 
$
783.0

 
$
2,155.2
Schedule of Maturities of Debt Obligations
The following table shows maturities of debt obligations of the RRPF affiliates as of December 31, 2017 (in millions):
2018 (1)
$
389.4

2019
81.3

2020
494.7

2021
584.4

2022
310.0

Thereafter
894.0

Total debt principal (2)
$
2,753.8

_______