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Railcar Leasing and Services Group
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Leasing Operations Of The Company [Text Block] Railcar Leasing and Services Group
The Railcar Leasing and Services Group owns and operates a fleet of railcars and provides third-party fleet leasing, management, and administrative services; railcar maintenance and modification services; and other railcar logistics products and services. Information related to the Leasing Group is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
 20242023Percent20242023Percent
($ in millions)Change($ in millions)Change
Revenues:
Leasing and management$213.1 $204.7 4.1 %$644.0 $603.2 6.8 %
Maintenance services (1)
66.5 39.1 70.1 %180.7 113.6 59.1 %
Digital and logistics services9.9 17.9 (44.7)%31.4 46.1 (31.9)%
Total revenues$289.5 $261.7 10.6 %$856.1 $762.9 12.2 %
Cost of revenues (2)
$168.9 $156.9 7.6 %495.9 471.3 5.2 %
Selling, engineering, and administrative expenses18.7 16.6 12.7 %56.8 48.7 16.6 %
Gains on dispositions of property:
Lease portfolio sales11.4 3.1 *36.2 46.4 *
Other1.9 4.5 *3.9 7.2 *
Total operating profit$115.2 $95.8 20.3 %$343.5 $296.5 15.9 %
Total operating profit margin39.8 %36.6 %40.1 %38.9 %
Total operating profit margin, excluding lease portfolio sales35.9 %35.4 %35.9 %32.8 %
Selected expense information for Company-owned railcars (3):
Depreciation and amortization expense (4)
$59.7 $58.7 1.7 %$179.7 $179.5 0.1 %
Maintenance and compliance expense (5)
$29.7 $33.7 (11.9)%$95.1 $101.3 (6.1)%
Other fleet operating costs (6)
$8.5 $7.7 10.4 %$24.3 $25.1 (3.2)%
Interest expense (7)
$59.1 $57.9 2.1 %$176.9 $169.7 4.2 %
* Not meaningful
(1) Revenues related to services performed by the maintenance services business to support our lease fleet of Company-owned railcars are eliminated within the Railcar Leasing & Services Group and are excluded from the totals reported on this line.
(2) Includes depreciation and amortization expense, maintenance and compliance expense, and other fleet operating costs related to our lease fleet, as well as operating costs for our maintenance services and digital and logistics services businesses.
(3) Includes wholly-owned railcars, partially-owned railcars, and railcars under leased-in arrangements.
(4) Depreciation and amortization expense includes $0.1 million and $5.6 million for the three and nine months ended September 30, 2023, respectively, related to the disposal of certain railcar components associated with our sustainable railcar conversion program. Additionally, amortization of deferred profit on railcars sold from the Rail Products Group to the Leasing Group is included in depreciation and amortization expense, resulting in the recognition of depreciation expense based on our original manufacturing cost of the railcars.
(5) Maintenance and compliance expense is reported at cost with respect to the services performed by our maintenance services business to support the railcars in our lease fleet.
(6) Other fleet operating costs include freight, storage, rent, and ad valorem taxes.
(7) Interest expense is not a component of operating profit and includes the effect of hedges.
Information related to lease portfolio sales is as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
($ in millions)
Lease portfolio sales$67.0 $60.1 $253.7 $245.8 
Operating profit on lease portfolio sales$11.4 $3.1 $36.2 $46.4 
Operating profit margin on lease portfolio sales17.0 %5.2 %14.3 %18.9 %
Railcar Leasing Equipment Portfolio. The Leasing Group's equipment consists primarily of railcars leased by third parties. The Leasing Group purchases equipment manufactured predominantly by the Rail Products Group and enters into lease contracts with third parties with terms generally ranging between one year and ten years. The Leasing Group primarily enters into operating leases. Future contractual minimum rental revenues on operating leases related to our wholly-owned and partially-owned subsidiaries are as follows:
Remaining three months of 20242025202620272028ThereafterTotal
 (in millions)
Future contractual minimum rental revenues$182.9 $649.3 $526.6 $402.9 $257.0 $400.5 $2,419.2 
Debt. Wholly-owned subsidiaries. The Leasing Group’s debt at September 30, 2024 consisted primarily of non-recourse debt. As of September 30, 2024, Trinity’s wholly-owned subsidiaries included in the Leasing Group held equipment with a net book value of $5,587.4 million, which is pledged solely as collateral for Leasing Group debt held by those subsidiaries. The net book value of unpledged equipment at September 30, 2024 was $290.7 million. See Note 8 for more information regarding the Leasing Group’s debt.
Partially-owned subsidiaries. Debt owed by TRIP Holdings and RIV 2013 and their respective subsidiaries is non-recourse to Trinity and TILC. Creditors of each of TRIP Holdings and RIV 2013 and their respective subsidiaries have recourse only to the particular subsidiary's assets. As of September 30, 2024, TRIP Holdings held equipment with a net book value of $1,018.9 million, which is pledged solely as collateral for the TRIP Holdings' debt held by its subsidiaries. As of September 30, 2024, TRP-2021 equipment with a net book value of $413.1 million is pledged solely as collateral for the TRP-2021 debt. See Note 5 for a description of TRIP Holdings and RIV 2013 and their respective subsidiaries.
Operating Lease Obligations. Future amounts due as well as future contractual minimum rental revenues related to the Leasing Group's railcar operating lease obligations are as follows:
Remaining three months of 20242025202620272028ThereafterTotal
 (in millions)
Future operating lease obligations
$2.3 $8.7 $8.0 $7.5 $5.0 $6.8 $38.3 
Future contractual minimum rental revenues$3.2 $11.5 $8.6 $3.2 $1.0 $1.8 $29.3 
Operating lease obligations totaling $0.6 million are guaranteed by Trinity Industries, Inc. and certain subsidiaries.