01-17-2013, 06:22 PM
Why are some SOO MP15AC repainted and relabeled to CP engines but stay in the US and it looks like they do the same duty as before in the SOO colors?
I traced how the MILW MP15AC became SOO engines and got repainted or patched in Chicago. But some time after 2000 the very same engines are found on photos as pure CP engines doing the same job in Chicago. However, there are still (the most?) SOO MP15ACs around (SOO painted white/red or bandits).
I know MILW has been absorbed by SOO and SOO became a wholly owned subsidiary of CP. I think I understood also that under US law a RR operating in the US must be a US company. It (e.g. SOO) might be owned by a foreign company (e.g. CP).
They might be sold and leased back. Transferring the asset to Canada but keep the (leasing) cost in the SOO books. That might be a tax advantage for SOO by lowering the tax relevant earnings. However the CP books will have more assets with negative impact on some key measurements.
Are there pure financial or taxation reasons in the background or did the real operation change when former SOO switchers became CP switchers?
I traced how the MILW MP15AC became SOO engines and got repainted or patched in Chicago. But some time after 2000 the very same engines are found on photos as pure CP engines doing the same job in Chicago. However, there are still (the most?) SOO MP15ACs around (SOO painted white/red or bandits).
I know MILW has been absorbed by SOO and SOO became a wholly owned subsidiary of CP. I think I understood also that under US law a RR operating in the US must be a US company. It (e.g. SOO) might be owned by a foreign company (e.g. CP).
They might be sold and leased back. Transferring the asset to Canada but keep the (leasing) cost in the SOO books. That might be a tax advantage for SOO by lowering the tax relevant earnings. However the CP books will have more assets with negative impact on some key measurements.
Are there pure financial or taxation reasons in the background or did the real operation change when former SOO switchers became CP switchers?
Reinhard