Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 15, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'TRINITY INDUSTRIES INC | ' |
Entity Central Index Key | '0000099780 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period | 'Q1 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 77,458,282 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Total revenues | $1,460.50 | $932.90 |
Cost of revenues: | ' | ' |
Total cost of revenues | 1,074 | 711.1 |
Selling, engineering, and administrative expenses: | ' | ' |
Total selling, engineering, and administrative expenses | 83.6 | 69 |
Gains (losses) on disposition of property, plant, and equipment: | ' | ' |
Net gains on railcar lease fleet sales owned more than one year at the time of sale | 77.5 | 6.8 |
Other | 10.9 | -0.1 |
Total gains on disposition of property, plant, and equipment | 88.4 | 6.7 |
Total operating profit | 391.3 | 159.5 |
Other (income) expense: | ' | ' |
Interest income | -0.4 | -0.4 |
Interest expense | 46.3 | 49.2 |
Other, net | -0.4 | -2.7 |
Other (income) expense, total | 45.5 | 46.1 |
Income from continuing operations before income taxes | 345.8 | 113.4 |
Provision for income taxes | 112.5 | 41.2 |
Net income from continuing operations | 233.3 | 72.2 |
Discontinued operations: | ' | ' |
Gain on sale of discontinued operations, net of provision for income taxes of $- and $5.4 | 0 | 7 |
Loss from discontinued operations, net of benefit for income taxes of $0.2 and $0.3 | -0.3 | -0.4 |
Net income | 233 | 78.8 |
Net income (loss) attributable to noncontrolling interest | 6.6 | -0.3 |
Net income attributable to Trinity Industries, Inc. | 226.4 | 79.1 |
Basic: | ' | ' |
Continuing operations (in dollars per share) | $2.91 | $0.91 |
Discontinued operations (in dollars per share) | $0 | $0.08 |
Basic (in dollars per share) | $2.91 | $0.99 |
Diluted: | ' | ' |
Continuing operations (in dollars per share) | $2.85 | $0.91 |
Discontinued operations (in dollars per share) | $0 | $0.08 |
Diluted (in dollars per share) | $2.85 | $0.99 |
Weighted average number of shares outstanding: | ' | ' |
Basic (in shares) | 75.1 | 76.9 |
Diluted (in shares) | 77 | 77 |
Dividends declared per common share (in dollars per share) | $0.15 | $0.11 |
Manufacturing | ' | ' |
Revenues: | ' | ' |
Total revenues | 1,018.30 | 798.5 |
Cost of revenues: | ' | ' |
Total cost of revenues | 794.7 | 641.2 |
Selling, engineering, and administrative expenses: | ' | ' |
Total selling, engineering, and administrative expenses | 49.5 | 42.7 |
Leasing | ' | ' |
Revenues: | ' | ' |
Total revenues | 442.2 | 134.4 |
Cost of revenues: | ' | ' |
Total cost of revenues | 279.3 | 69.9 |
Selling, engineering, and administrative expenses: | ' | ' |
Total selling, engineering, and administrative expenses | 11 | 9.7 |
Other | ' | ' |
Selling, engineering, and administrative expenses: | ' | ' |
Total selling, engineering, and administrative expenses | $23.10 | $16.60 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Provision for income taxes related to gain on sale of discontinued operations | $0 | $5.40 |
Benefit for income taxes related to loss from discontinued operations | $0.20 | $0.30 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income | $233 | $78.80 |
Derivative financial instruments: | ' | ' |
Unrealized losses arising during the period, net of tax benefit of $0.4 and $0.5 | -1.2 | -0.7 |
Reclassification adjustments for losses included in net income, net of tax benefit of $2.0 and $2.8 | 4.3 | 4.6 |
Defined benefit plans: | ' | ' |
Amortization of net actuarial losses, net of tax benefit of $0.1 and $0.5 | 0.2 | 0.7 |
Other comprehensive income (loss), net of tax | 3.3 | 4.6 |
Comprehensive income | 236.3 | 83.4 |
Less: comprehensive income attributable to noncontrolling interest | 7.3 | 0.4 |
Comprehensive income attributable to Trinity Industries, Inc. | $229 | $83 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Unrealized losses arising during the period, tax benefit | $0.40 | $0.50 |
Reclassification adjustments for losses included in net income, tax benefit | 2 | 2.8 |
Amortization of net actuarial losses, tax benefit | $0.10 | $0.50 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Cash and cash equivalents | $532.20 | [1] | $428.50 | |
Short-term marketable securities | 256.4 | [1] | 149.7 | |
Receivables, net of allowance | 421.4 | [1] | 372.7 | |
Inventories: | ' | ' | ||
Raw materials and supplies | 493.9 | [1] | 477 | |
Work in process | 273.2 | [1] | 201.4 | |
Finished goods | 136.9 | [1] | 136.3 | |
Inventory, net | 904 | [1] | 814.7 | |
Restricted cash, including partially-owned subsidiaries of $76.7 and $77.1 | 231.4 | [1] | 260.7 | |
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,889.1 and $1,887.2 | 6,145.50 | [1] | 6,275.80 | |
Less accumulated depreciation, including partially-owned subsidiaries of $215.3 and $202.1 | -1,524.90 | [1] | -1,505.20 | |
Property, plant, and equipment, net | 4,620.60 | [1] | 4,770.60 | |
Goodwill | 360.3 | [1] | 278.2 | [2] |
Other assets | 253.9 | [1] | 238.3 | |
Total assets | 7,580.20 | [1] | 7,313.40 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ||
Accounts payable | 257.8 | [1] | 216.3 | |
Accrued liabilities | 614.7 | [1] | 567.4 | |
Debt: | ' | ' | ||
Recourse, net of unamortized discount of $70.6 and $74.1 | 421.7 | [1] | 419 | |
Non-recourse: | ' | ' | ||
Wholly-owned subsidiaries | 1,279.20 | [1] | 1,314.70 | |
Partially-owned subsidiaries | 1,239.30 | [1] | 1,256.10 | |
Total debt | 2,940.20 | [1] | 2,989.80 | |
Deferred income | 39.8 | [1] | 40.8 | |
Deferred income taxes | 654.6 | [1] | 650.7 | |
Other liabilities | 103.2 | [1] | 99.3 | |
Total liabilities | 4,610.30 | [1] | 4,564.30 | |
Stockholders’ equity: | ' | ' | ||
Preferred stock – 1.5 shares authorized and unissued | 0 | [1] | 0 | |
Common stock – 200.0 shares authorized | 81.7 | [1] | 81.7 | |
Capital in excess of par value | 696.4 | [1] | 686.6 | |
Retained earnings | 2,084.80 | [1] | 1,870 | |
Accumulated other comprehensive loss | -75.6 | [1] | -78.2 | |
Treasury stock | -166.4 | [1] | -158 | |
Total stockholders' equity | 2,620.90 | [1] | 2,402.10 | |
Noncontrolling interest | 349 | [1] | 347 | |
Total stockholders' equity, including portion attributable to noncontrolling interest | 2,969.90 | [1] | 2,749.10 | |
Total liabilities and stockholders' equity | $7,580.20 | [1] | $7,313.40 | |
[1] | (unaudited) | |||
[2] | (as reported) |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Millions, except Share data, unless otherwise specified | |||
Unamortized discount on recourse debt | $70.60 | [1] | $74.10 |
Preferred stock, shares authorized | 1,500,000 | [1] | 1,500,000 |
Preferred stock, shares unissued | 1,500,000 | [1] | 1,500,000 |
Common stock, shares authorized | 200,000,000 | [1] | 200,000,000 |
Restricted cash | 231.4 | [1] | 260.7 |
Property, plant, and equipment, at cost | 6,145.50 | [1] | 6,275.80 |
Less accumulated depreciation | 1,524.90 | [1] | 1,505.20 |
Partially-owned subsidiaries | ' | ' | |
Restricted cash | 76.7 | [1] | 77.1 |
Property, plant, and equipment, at cost | 1,889.10 | [1] | 1,887.20 |
Less accumulated depreciation | $215.30 | [1] | $202.10 |
[1] | (unaudited) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (unaudited) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Operating activities: | ' | ' | |
Net income | $233 | $78.80 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | |
(Income) loss from discontinued operations | 0.3 | -6.6 | |
Depreciation and amortization | 55.3 | 50 | |
Stock-based compensation expense | 10.9 | 8.9 | |
Excess tax benefits from stock-based compensation | -0.4 | -0.6 | |
Provision for deferred income taxes | 1 | 36 | |
Net gains on railcar lease fleet sales owned more than one year at the time of sale | -77.5 | -6.8 | |
Gains (losses) on disposition of property, plant, equipment, and other assets | -10.9 | 0.1 | |
Non-cash interest expense | 7.8 | 8.1 | |
Other | -0.7 | -2.4 | |
Changes in assets and liabilities: | ' | ' | |
(Increase) decrease in receivables | -43.3 | -22.9 | |
(Increase) decrease in inventories | -57.9 | -26.3 | |
(Increase) decrease in restricted cash | 25 | 0 | |
(Increase) decrease in other assets | -10.6 | -20.2 | |
Increase (decrease) in accounts payable | 38.4 | 10.9 | |
Increase (decrease) in accrued liabilities | 30.8 | -8.2 | |
Increase (decrease) in other liabilities | 3.9 | 6.1 | |
Net cash provided by operating activities - continuing operations | 205.1 | 104.9 | |
Net cash provided (required) by operating activities - discontinued operations | 0.2 | -3.1 | |
Net cash provided by operating activities | 205.3 | 101.8 | |
Investing activities: | ' | ' | |
(Increase) decrease in short-term marketable securities | -106.7 | -59.9 | |
Proceeds from railcar lease fleet sales owned more than one year at the time of sale | 224.3 | 30.6 | |
Proceeds from disposition of property, plant, equipment, and other assets | 17.2 | 0.6 | |
Capital expenditures – leasing, net of sold lease fleet railcars owned one year or less with a net cost of $204.0 and $0.1 | 0.4 | -166.8 | |
Capital expenditures – manufacturing and other | -49.1 | -25.8 | |
Acquisitions, net of cash acquired | -112.6 | -9.1 | |
Other | 3 | -0.8 | |
Net cash required by investing activities - continuing operations | -23.5 | -231.2 | |
Net cash required by investing activities - discontinued operations | -0.1 | -0.4 | |
Net cash required by investing activities | -23.6 | -231.6 | |
Financing activities: | ' | ' | |
Proceeds from issuance of common stock, net | 0.3 | 1.4 | |
Excess tax benefits from stock-based compensation | 0.4 | 0.6 | |
Payments to retire debt | -53.1 | -83.5 | |
(Increase) decrease in restricted cash | 4.3 | 7.9 | |
Shares repurchased | -12.5 | 0 | |
Dividends paid to common shareholders | -11.6 | -8.7 | |
Distributions to noncontrolling interest | -5.4 | 0 | |
Other | -0.1 | -0.1 | |
Net cash required by financing activities - continuing operations | -77.7 | -82.4 | |
Net cash required by financing activities - discontinued operations | -0.3 | -0.3 | |
Net cash required by financing activities | -78 | -82.7 | |
Net increase (decrease) in cash and cash equivalents | 103.7 | -212.5 | |
Cash and cash equivalents at beginning of period | 428.5 | 573 | |
Cash and cash equivalents at end of period | $532.20 | [1] | $360.50 |
[1] | (unaudited) |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Capital expenditures – leasing, net of sold railcars owned one year or less, net cost | $204 | $0.10 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (unaudited) (USD $) | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Trinity Stockholders' Equity | Noncontrolling Interest | |
In Millions, except Share data, unless otherwise specified | |||||||||
Beginning balance at Dec. 31, 2013 | $2,749.10 | $81.70 | $686.60 | $1,870 | ($78.20) | ($158) | $2,402.10 | $347 | |
Beginning balance, Shares at Dec. 31, 2013 | ' | 81,700,000 | ' | ' | ' | -4,300,000 | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | |
Net income | 233 | ' | ' | 226.4 | ' | ' | 226.4 | 6.6 | |
Other comprehensive income | 3.3 | ' | ' | ' | 2.6 | ' | 2.6 | 0.7 | |
Cash dividends on common stock | -11.6 | ' | ' | -11.6 | ' | ' | -11.6 | ' | |
Restricted shares, net | 10.8 | ' | 9.5 | ' | ' | 1.3 | 10.8 | ' | |
Restricted shares, net, Shares | ' | ' | ' | ' | ' | 100,000 | ' | ' | |
Shares repurchased | -10 | ' | ' | ' | ' | -10 | -10 | ' | |
Shares repurchased, Shares | ' | ' | ' | ' | ' | -100,000 | ' | ' | |
Stock options exercised | 0.3 | ' | -0.1 | ' | ' | 0.4 | 0.3 | ' | |
Stock options exercised, Shares | ' | ' | ' | ' | ' | 0 | ' | ' | |
Excess tax benefits from stock-based compensation | 0.4 | ' | 0.4 | ' | ' | ' | 0.4 | ' | |
Distributions to noncontrolling interest | -5.4 | ' | ' | ' | ' | ' | ' | -5.4 | |
Other | 0 | ' | 0 | ' | ' | -0.1 | -0.1 | 0.1 | |
Ending balance at Mar. 31, 2014 | $2,969.90 | [1] | $81.70 | $696.40 | $2,084.80 | ($75.60) | ($166.40) | $2,620.90 | $349 |
Ending balance, Shares at Mar. 31, 2014 | ' | 81,700,000 | ' | ' | ' | -4,300,000 | ' | ' | |
[1] | (unaudited) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Basis of Presentation | |
The foregoing consolidated financial statements are unaudited and have been prepared from the books and records of Trinity Industries, Inc. and its consolidated subsidiaries (“Trinity”, “Company”, “we”, or “our”) including the accounts of its wholly-owned subsidiaries and its partially-owned subsidiaries, TRIP Rail Holdings LLC (“TRIP Holdings”) and RIV 2013 Rail Holdings LLC ("RIV 2013"), in which the Company has controlling interest. In our opinion, all normal and recurring adjustments necessary for a fair presentation of the financial position of the Company as of March 31, 2014, and the results of operations and cash flows for the three months ended March 31, 2014 and 2013, have been made in conformity with generally accepted accounting principles. All significant intercompany accounts and transactions have been eliminated. Because of seasonal and other factors, the results of operations for the three months ended March 31, 2014 may not be indicative of expected results of operations for the year ending December 31, 2014. These interim financial statements and notes are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with the audited consolidated financial statements of the Company included in its Form 10-K for the year ended December 31, 2013. | |
Stockholders' Equity | |
In March 2014, the Company’s Board of Directors authorized a new $250 million share repurchase program, effective March 7, 2014, that will expire on December 31, 2015. The new program replaced the Company's previously authorized $200 million share repurchase program. Under the new program, 138,273 shares were repurchased during the three months ended March 31, 2014, at a cost of approximately $10.0 million. Certain shares of stock repurchased during March 2014, totaling $2.5 million, were cash settled in April 2014 in accordance with normal settlement practices. No shares were repurchased under the prior program during the three months ended March 31, 2013. | |
Revenue Recognition | |
Revenues for contracts providing for a large number of units and few deliveries are recorded as the individual units are produced, inspected, and accepted by the customer as the risk of loss passes to the customer upon delivery acceptance on these contracts. This occurs primarily in the Rail and Inland Barge Groups. Revenue from rentals and operating leases, including contracts which contain non-level fixed rental payments, is recognized monthly on a straight-line basis. Revenue is recognized from the sales of railcars from the lease fleet on a gross basis in leasing revenues and cost of revenues if the railcar has been owned for one year or less at the time of sale. Sales of railcars from the lease fleet that have been owned for more than one year are recognized as a net gain or loss from the disposal of a long-term asset. Fees for shipping and handling are recorded as revenue. For all other products, we recognize revenue when products are shipped or services are provided. | |
Financial Instruments | |
The Company considers all highly liquid debt instruments to be either cash and cash equivalents if purchased with a maturity of three months or less, or short-term marketable securities if purchased with a maturity of more than three months and less than one year. The Company intends to hold its short-term marketable securities until they are redeemed at their maturity date and believes that under the "more likely than not" criteria, the Company will not be required to sell the securities before recovery of their amortized cost bases, which may be maturity. | |
Financial instruments that potentially subject the Company to a concentration of credit risk are primarily cash investments including restricted cash, short-term marketable securities, and receivables. The Company places its cash investments and short-term marketable securities in bank deposits and investment grade, short-term debt instruments and limits the amount of credit exposure to any one commercial issuer. Concentrations of credit risk with respect to receivables are limited due to control procedures that monitor the credit worthiness of customers, the large number of customers in the Company's customer base, and their dispersion across different industries and geographic areas. As receivables are generally unsecured, the Company maintains an allowance for doubtful accounts based upon the expected collectibility of all receivables. Receivable balances determined to be uncollectible are charged against the allowance. The carrying values of cash, short-term marketable securities, receivables, and accounts payable are considered to be representative of their respective fair values. | |
Reclassifications | |
Certain prior year balances have been reclassified in the consolidated statements of cash flows to conform to the 2014 presentation. |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Acquisitions and Divestitures | ' | |||||||
Acquisitions and Divestitures | ||||||||
The Company's acquisition and divestiture activities are summarized below: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Acquisitions: | ||||||||
Purchase price | $ | 117.6 | $ | 53.8 | ||||
Net cash paid | $ | 112.6 | $ | 9.1 | ||||
Goodwill recorded | $ | 82.1 | $ | 2.5 | ||||
Divestitures: | ||||||||
Proceeds | $ | — | $ | 35.6 | ||||
Gain recognized | $ | — | $ | 12.4 | ||||
Goodwill charged off | $ | — | $ | 4.8 | ||||
During the three months ended March 31, 2014, we completed the acquisition of three businesses in our Energy Equipment Group located in the U.S. and Canada. The acquisitions were recorded based on preliminary valuations of the related assets and liabilities at their acquisition date fair value using level three inputs. Such assets and liabilities were not significant in relation to assets and liabilities at the consolidated or segment level. See Note 3 Fair Value Accounting for a discussion of inputs in determining fair value. | ||||||||
During the three months ended March 31, 2013, the Company sold its ready-mix concrete operations in exchange for certain aggregates operations. The divestiture has been accounted for and reported as a discontinued operation. Condensed results of operations for the ready-mix concrete operations for the three months ended March 31, 2014 and 2013 are as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Revenues | $ | — | $ | 31.6 | ||||
Loss from discontinued operations before income taxes | $ | (0.5 | ) | $ | (0.7 | ) | ||
Income tax benefit | (0.2 | ) | (0.3 | ) | ||||
Net loss from discontinued operations | $ | (0.3 | ) | $ | (0.4 | ) |
Fair_Value_Accounting
Fair Value Accounting | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Accounting | ' | |||||||||||||||
Fair Value Accounting | ||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below: | ||||||||||||||||
Fair Value Measurement as of March 31, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 159.7 | $ | — | $ | — | $ | 159.7 | ||||||||
Restricted cash | 231.4 | — | — | 231.4 | ||||||||||||
Total assets | $ | 391.1 | $ | — | $ | — | $ | 391.1 | ||||||||
Liabilities: | ||||||||||||||||
Interest rate hedges:(1) | ||||||||||||||||
Wholly-owned subsidiaries | $ | — | $ | 18 | $ | — | $ | 18 | ||||||||
Partially-owned subsidiaries | — | 2.1 | — | 2.1 | ||||||||||||
Total liabilities | $ | — | $ | 20.1 | $ | — | $ | 20.1 | ||||||||
Fair Value Measurement as of December 31, 2013 | ||||||||||||||||
(in millions) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 230.6 | $ | — | $ | — | $ | 230.6 | ||||||||
Restricted cash | 260.7 | — | — | 260.7 | ||||||||||||
Total assets | $ | 491.3 | $ | — | $ | — | $ | 491.3 | ||||||||
Liabilities: | ||||||||||||||||
Interest rate hedges:(1) | ||||||||||||||||
Wholly-owned subsidiaries | $ | — | $ | 21.7 | $ | — | $ | 21.7 | ||||||||
Partially-owned subsidiaries | — | 2.1 | — | 2.1 | ||||||||||||
Total liabilities | $ | — | $ | 23.8 | $ | — | $ | 23.8 | ||||||||
(1) Included in accrued liabilities on the consolidated balance sheet. | ||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for that asset or liability in an orderly transaction between market participants on the measurement date. An entity is required to establish a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair values are listed below: | ||||||||||||||||
Level 1 – This level is defined as quoted prices in active markets for identical assets or liabilities. The Company’s cash equivalents, excluding commercial paper, and restricted cash are instruments of the U.S. Treasury or highly-rated money market mutual funds. | ||||||||||||||||
Level 2 – This level is defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Interest rate hedges are valued at exit prices obtained from each counterparty. See Note 7 Derivative Instruments and Note 11 Debt. | ||||||||||||||||
Level 3 – This level is defined as unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||
The carrying amounts and estimated fair values of our long-term debt are as follows: | ||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||||
(in millions) | ||||||||||||||||
Recourse: | ||||||||||||||||
Convertible subordinated notes | $ | 450 | $ | 707 | $ | 450 | $ | 593.4 | ||||||||
Less: unamortized discount | (70.6 | ) | (74.1 | ) | ||||||||||||
379.4 | 375.9 | |||||||||||||||
Capital lease obligations | 41.4 | 41.4 | 42.2 | 42.2 | ||||||||||||
Other | 0.9 | 0.9 | 0.9 | 0.9 | ||||||||||||
421.7 | 749.3 | 419 | 636.5 | |||||||||||||
Non-recourse: | ||||||||||||||||
2006 secured railcar equipment notes | 236.8 | 257.3 | 240.7 | 259.2 | ||||||||||||
Promissory notes | 389.1 | 383.3 | 396.1 | 389.6 | ||||||||||||
2009 secured railcar equipment notes | 196.6 | 230.3 | 199 | 229.5 | ||||||||||||
2010 secured railcar equipment notes | 323.5 | 345.4 | 326.9 | 342.7 | ||||||||||||
TILC warehouse facility | 133.2 | 133.2 | 152 | 152 | ||||||||||||
TRL 2012 secured railcar equipment notes - RIV 2013 | 493 | 479.2 | 499.3 | 483.4 | ||||||||||||
TRIP Master Funding secured railcar equipment notes | 746.3 | 811.4 | 756.8 | 819.8 | ||||||||||||
2,518.50 | 2,640.10 | 2,570.80 | 2,676.20 | |||||||||||||
Total | $ | 2,940.20 | $ | 3,389.40 | $ | 2,989.80 | $ | 3,312.70 | ||||||||
The estimated fair value of our convertible subordinated notes was based on a quoted market price in a market with little activity as of March 31, 2014 and December 31, 2013, respectively (Level 2 input). The estimated fair values of our 2006, 2009, 2010, and 2012 secured railcar equipment notes, promissory notes, and TRIP Rail Master Funding LLC (“TRIP Master Funding”) secured railcar equipment notes are based on our estimate of their fair value as of March 31, 2014 and December 31, 2013, respectively. These values were determined by discounting their future cash flows at the current market interest rate (Level 3 inputs). The carrying value of our Trinity Industries Leasing Company (“TILC”) warehouse facility approximates fair value because the interest rate adjusts to the market interest rate (Level 3 input). The fair values of all other financial instruments are estimated to approximate carrying value. See Note 11 Debt for a description of the Company's long-term debt. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
The Company reports operating results in five principal business segments: (1) the Rail Group, which manufactures and sells railcars and related parts and components; (2) the Construction Products Group, which manufactures and sells highway products and other steel products for infrastructure-related projects, and produces and sells aggregates; (3) the Inland Barge Group, which manufactures and sells barges and related products for inland waterway services; (4) the Energy Equipment Group, which manufactures and sells products for energy-related businesses, including structural wind towers, storage containers, tank heads for pressure and non-pressure vessels, and utility, traffic, and lighting structures; and (5) the Railcar Leasing and Management Services Group (“Leasing Group”), which owns and operates a fleet of railcars as well as provides third-party fleet management, maintenance, and leasing services. The segment All Other includes our captive insurance and transportation companies; legal, environmental, and maintenance costs associated with non-operating facilities; and other peripheral businesses. Gains and losses from the sale of property, plant, and equipment that are related to manufacturing and dedicated to the specific manufacturing operations of a particular segment are included in operating profit of that respective segment. Gains and losses from the sale of property, plant, and equipment that can be utilized by multiple segments are included in operating profit of the All Other segment. | ||||||||||||||||
Sales and related net profits from the Rail Group to the Leasing Group are recorded in the Rail Group and eliminated in consolidation. Sales between these groups are recorded at prices comparable to those charged to external customers, taking into consideration quantity, features, and production demand. Intersegment sales and net profit ("deferred profit") are eliminated in consolidation and reflected in the "Eliminations – Lease subsidiary" line in the table below. Amortization of deferred profit on railcars sold to the Leasing Group is included in the operating profits of the Leasing Group, resulting in the recognition of depreciation expense based on the Company's original manufacturing cost of the railcars. Sales of railcars from the lease fleet are included in the Leasing Group, with related gains and losses computed based on the net book value of the original manufacturing cost of the railcars. | ||||||||||||||||
The financial information from continuing operations for these segments is shown in the tables below. We operate principally in North America. | ||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||
Revenues | Operating Profit (Loss) | |||||||||||||||
External | Intersegment | Total | ||||||||||||||
(in millions) | ||||||||||||||||
Rail Group | $ | 601.1 | $ | 256.3 | $ | 857.4 | $ | 167.5 | ||||||||
Construction Products Group | 112.2 | 0.9 | 113.1 | 21.7 | ||||||||||||
Inland Barge Group | 136.9 | — | 136.9 | 26.7 | ||||||||||||
Energy Equipment Group | 167 | 43.6 | 210.6 | 22.9 | ||||||||||||
Railcar Leasing and Management Services Group | 442.2 | 0.9 | 443.1 | 230.3 | ||||||||||||
All Other | 1.1 | 22.1 | 23.2 | (5.4 | ) | |||||||||||
Segment Totals before Eliminations and Corporate | 1,460.50 | 323.8 | 1,784.30 | 463.7 | ||||||||||||
Corporate | — | — | — | (23.1 | ) | |||||||||||
Eliminations – Lease subsidiary | — | (249.1 | ) | (249.1 | ) | (49.3 | ) | |||||||||
Eliminations – Other | — | (74.7 | ) | (74.7 | ) | — | ||||||||||
Consolidated Total | $ | 1,460.50 | $ | — | $ | 1,460.50 | $ | 391.3 | ||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||
Revenues | Operating Profit (Loss) | |||||||||||||||
External | Intersegment | Total | ||||||||||||||
(in millions) | ||||||||||||||||
Rail Group | $ | 423.6 | $ | 201.9 | $ | 625.5 | $ | 102.9 | ||||||||
Construction Products Group | 98 | 5.8 | 103.8 | 7.7 | ||||||||||||
Inland Barge Group | 147.4 | — | 147.4 | 24.3 | ||||||||||||
Energy Equipment Group | 128.5 | 26.2 | 154.7 | 14.9 | ||||||||||||
Railcar Leasing and Management Services Group | 134.4 | — | 134.4 | 61.6 | ||||||||||||
All Other | 1 | 18.3 | 19.3 | (2.6 | ) | |||||||||||
Segment Totals before Eliminations and Corporate | 932.9 | 252.2 | 1,185.10 | 208.8 | ||||||||||||
Corporate | — | — | — | (16.6 | ) | |||||||||||
Eliminations – Lease subsidiary | — | (198.0 | ) | (198.0 | ) | (32.4 | ) | |||||||||
Eliminations – Other | — | (54.2 | ) | (54.2 | ) | (0.3 | ) | |||||||||
Consolidated Total | $ | 932.9 | $ | — | $ | 932.9 | $ | 159.5 | ||||||||
PartiallyOwned_Leasing_Subsidi
Partially-Owned Leasing Subsidiaries | 3 Months Ended |
Mar. 31, 2014 | |
Partially-Owned Leasing Subsidiaries [Abstract] | ' |
Partially-Owned Leasing Subsidiaries | ' |
Partially-Owned Leasing Subsidiaries | |
The Company, through its wholly-owned subsidiary, TILC, formed two subsidiaries, TRIP Holdings and RIV 2013, for the purpose of providing railcar leasing in North America. Each of TRIP Holdings and RIV 2013 are direct, partially-owned subsidiaries of TILC and are each governed by a seven-member board of representatives, two of whom are designated by TILC. TILC is the agent of each of TRIP Holdings and RIV 2013 and as such, has been delegated the authority, power, and discretion to take certain actions on behalf of the respective companies. Each of TRIP Holdings and RIV 2013 in turn has wholly-owned subsidiaries which are the owners of railcars. These wholly-owned subsidiaries are TRIP Master Funding (wholly-owned by TRIP Holdings) and Trinity Rail Leasing 2012 LLC ("TRL 2012", wholly-owned by RIV 2013). TILC is the contractual servicer for TRIP Master Funding and TRL 2012, with the authority to manage and service each entity's owned railcars. The Company's controlling interest in each of TRIP Holdings and RIV 2013 results from its combined role as both equity member and agent/servicer. The noncontrolling interest included in the accompanying consolidated balance sheets represents the non-Trinity equity interest in these partially-owned subsidiaries. The railcars owned by TRIP Master Funding were originally acquired from the Company's Rail and Leasing Groups by TRIP Rail Leasing LLC ("TRIP Leasing"), a wholly-owned subsidiary of TRIP Holdings. TRIP Master Funding acquired the railcars from TRIP Leasing in July 2011. TRIP Leasing currently owns no railcars and is not expected to acquire any railcars. | |
TRIP Holdings and RIV 2013, through TRIP Leasing and TRL 2012, respectively, acquired railcars from the Company's Rail and Leasing Groups funded by capital contributions from TILC and third-party equity investors, and from secured borrowings. Railcars purchased from the Company by TRIP Master Funding and TRL 2012 are required to be purchased at fair value as determined by TILC and approved by the boards of representatives of TRIP Holdings and RIV 2013, respectively. The assets of each of TRIP Holdings, TRIP Master Funding, RIV 2013, and TRL 2012 may only be used to satisfy the particular subsidiary's liabilities, and the creditors of each of TRIP Holdings, TRIP Master Funding, RIV 2013, and TRL 2012 have recourse only to the particular subsidiary's assets. Each of TILC and the third-party equity investors receive distributions from TRIP Holdings and RIV 2013, when allowed, in proportion to its respective equity interests, and has an interest in the net assets of the partially-owned subsidiaries upon a liquidation event in the same proportion. TILC is paid fees for the services it provides to TRIP Master Funding and TRL 2012 and has the potential to earn certain incentive fees. With respect to RIV 2013, TILC had a commitment that expires in May 2016 to provide additional equity funding for the purchase of railcars and satisfaction of certain other liabilities of RIV 2013 of up to $27.9 million as of March 31, 2014. The third-party equity investors in RIV 2013 had a similar commitment that expires in May 2016 to provide up to $63.4 million of additional equity funding. In April 2014, the equity commitment of TILC and the third-party equity investors of TRIP Holdings were increased in anticipation of additional future railcar purchases with a corresponding decrease in the equity commitment of TILC and the third-party investors of RIV 2013. The third-party equity investors in TRIP Holdings and RIV 2013 are the same, and the changes in equity commitments were primarily due to the expected debt financing associated with future railcar purchases. TILC and the third-party equity investors may have additional commitments to provide equity funding to TRIP Holdings that expire in May 2019 contingent upon certain returns on investment in TRIP Holdings and other conditions being met. Trinity has no obligation to guarantee performance under any of the partially-owned subsidiaries' (or their respective subsidiaries') debt agreements, guarantee any railcar residual values, shield any parties from losses, or guarantee minimum yields. | |
At March 31, 2014, the Company's carrying value of its investment in TRIP Holdings was $161.3 million representing the Company's 45% ownership interest while the Company's carrying value of its investment in RIV 2013 was $44.9 million, representing the Company's 31% interest. The Company's investments in its partially-owned leasing subsidiaries are eliminated in consolidation. | |
See Note 11 Debt regarding the debt of TRIP Holdings and RIV 2013 and their respective subsidiaries. |
Railcar_Leasing_and_Management
Railcar Leasing and Management Services Group | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Railcar Leasing and Management Services Group | ' | ||||||||||||||||||||||||||||
Railcar Leasing and Management Services Group | |||||||||||||||||||||||||||||
The Railcar Leasing and Management Services Group owns and operates a fleet of railcars as well as provides third-party fleet management, maintenance, and leasing services. Selected consolidating financial information for the Leasing Group is as follows: | |||||||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||||||
Leasing Group | |||||||||||||||||||||||||||||
Wholly- | Partially-Owned Subsidiaries | Manufacturing/ | Total | ||||||||||||||||||||||||||
Owned | Corporate | ||||||||||||||||||||||||||||
Subsidiaries | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Cash, cash equivalents, and short-term marketable securities | $ | 2 | $ | — | $ | 786.6 | $ | 788.6 | |||||||||||||||||||||
Property, plant, and equipment, net | $ | 2,769.60 | $ | 1,673.80 | $ | 700.4 | $ | 5,143.80 | |||||||||||||||||||||
Net deferred profit on railcars sold to | (523.2 | ) | |||||||||||||||||||||||||||
the Leasing Group | |||||||||||||||||||||||||||||
Consolidated property, plant and equipment, net | $ | 4,620.60 | |||||||||||||||||||||||||||
Restricted cash | $ | 154.7 | $ | 76.7 | $ | — | $ | 231.4 | |||||||||||||||||||||
Debt: | |||||||||||||||||||||||||||||
Recourse | $ | 41.4 | $ | — | $ | 450.9 | $ | 492.3 | |||||||||||||||||||||
Less: unamortized discount | — | — | (70.6 | ) | (70.6 | ) | |||||||||||||||||||||||
41.4 | — | 380.3 | 421.7 | ||||||||||||||||||||||||||
Non-recourse | 1,279.20 | 1,239.30 | — | 2,518.50 | |||||||||||||||||||||||||
Total debt | $ | 1,320.60 | $ | 1,239.30 | $ | 380.3 | $ | 2,940.20 | |||||||||||||||||||||
Net deferred tax liabilities | $ | 646.3 | $ | — | $ | (3.4 | ) | $ | 642.9 | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Leasing Group | |||||||||||||||||||||||||||||
Wholly- | Partially-Owned Subsidiaries | Manufacturing/ | Total | ||||||||||||||||||||||||||
Owned | Corporate | ||||||||||||||||||||||||||||
Subsidiaries | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Cash, cash equivalents, and short-term marketable securities | $ | 3.5 | $ | — | $ | 574.7 | $ | 578.2 | |||||||||||||||||||||
Property, plant, and equipment, net | $ | 2,964.60 | $ | 1,685.10 | $ | 670.6 | $ | 5,320.30 | |||||||||||||||||||||
Net deferred profit on railcars sold to | (549.7 | ) | |||||||||||||||||||||||||||
the Leasing Group | |||||||||||||||||||||||||||||
Consolidated property, plant and equipment, net | $ | 4,770.60 | |||||||||||||||||||||||||||
Restricted cash | $ | 183.6 | $ | 77.1 | $ | — | $ | 260.7 | |||||||||||||||||||||
Debt: | |||||||||||||||||||||||||||||
Recourse | $ | 42.2 | $ | — | $ | 450.9 | $ | 493.1 | |||||||||||||||||||||
Less: unamortized discount | — | — | (74.1 | ) | (74.1 | ) | |||||||||||||||||||||||
42.2 | — | 376.8 | 419 | ||||||||||||||||||||||||||
Non-recourse | 1,314.70 | 1,256.10 | — | 2,570.80 | |||||||||||||||||||||||||
Total debt | $ | 1,356.90 | $ | 1,256.10 | $ | 376.8 | $ | 2,989.80 | |||||||||||||||||||||
Net deferred tax liabilities | $ | 671.9 | $ | — | $ | (32.5 | ) | $ | 639.4 | ||||||||||||||||||||
See Note 5 Partially-Owned Leasing Subsidiaries and Note 11 Debt for a further discussion regarding the Company’s investment in its partially-owned leasing subsidiaries and the related indebtedness. | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2014 | 2013 | Percent | |||||||||||||||||||||||||||
($ in millions) | Change | ||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Leasing and management | $ | 150.2 | $ | 134.3 | 11.8 | % | |||||||||||||||||||||||
Sales of railcars owned one year or less at the time of sale | 292.9 | 0.1 | * | ||||||||||||||||||||||||||
Total revenues | $ | 443.1 | $ | 134.4 | 229.7 | ||||||||||||||||||||||||
Operating profit: | |||||||||||||||||||||||||||||
Leasing and management | $ | 63.9 | $ | 54.8 | 16.6 | ||||||||||||||||||||||||
Railcar sales: | |||||||||||||||||||||||||||||
Railcars owned one year or less at the time of sale | 88.9 | — | |||||||||||||||||||||||||||
Railcars owned more than one year at the time of sale | 77.5 | 6.8 | |||||||||||||||||||||||||||
Total operating profit | $ | 230.3 | $ | 61.6 | 273.9 | ||||||||||||||||||||||||
Operating profit margin: | |||||||||||||||||||||||||||||
Leasing and management | 42.5 | % | 40.8 | % | |||||||||||||||||||||||||
Railcar sales | * | * | |||||||||||||||||||||||||||
Total operating profit margin | 52 | % | 45.8 | % | |||||||||||||||||||||||||
Selected expense information(1): | |||||||||||||||||||||||||||||
Depreciation | $ | 32.5 | $ | 31 | 4.8 | ||||||||||||||||||||||||
Maintenance | $ | 21 | $ | 19 | 10.5 | ||||||||||||||||||||||||
Rent | $ | 13.3 | $ | 13.4 | (0.7 | ) | |||||||||||||||||||||||
Interest: | |||||||||||||||||||||||||||||
External | $ | 37.3 | $ | 40.9 | |||||||||||||||||||||||||
Intercompany | — | 2.7 | |||||||||||||||||||||||||||
Total interest expense | $ | 37.3 | $ | 43.6 | (14.4 | ) | |||||||||||||||||||||||
* Not meaningful | |||||||||||||||||||||||||||||
(1) Depreciation, maintenance, and rent expense are components of operating profit. Amortization of deferred profit on railcars sold from the Rail Group to the Leasing Group is included in the operating profits of the Leasing Group resulting in the recognition of depreciation expense based on the Company's original manufacturing cost of the railcars. Interest expense is not a component of operating profit and includes the effect of hedges. Intercompany interest expense arises from Trinity’s previous ownership of a portion of TRIP Holdings’ Senior Secured Notes and is eliminated in consolidation. See Note 11 Debt. | |||||||||||||||||||||||||||||
The Company received proceeds of $514.3 million from the sale of leased railcars to Element Financial Corporation ("Element") during the three months ended March 31, 2014 under the strategic alliance with Element announced in December 2013, including $13.7 million recorded as revenue by the Rail Group. From the total proceeds, the Leasing Group recorded $277.9 million in revenue from the sale of railcars owned one or less at the time of sale. The remainder of the proceeds of $222.7 million is attributable to the sale of railcars owned more than one year at the time of sale and is, consequently, excluded from revenue. | |||||||||||||||||||||||||||||
Equipment consists primarily of railcars leased by third parties. The Leasing Group purchases equipment manufactured predominantly by the Rail Group and enters into lease contracts with third parties with terms generally ranging between one and twenty years. The Leasing Group primarily enters into operating leases. Future contractual minimum rental revenues on leases are as follows: | |||||||||||||||||||||||||||||
Remaining nine months of 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Future contractual minimum rental revenue | $ | 318.8 | $ | 364 | $ | 304 | $ | 242.4 | $ | 177.5 | $ | 280.5 | $ | 1,687.20 | |||||||||||||||
Debt. The Leasing Group’s debt at March 31, 2014 consisted of both recourse and non-recourse debt. As of March 31, 2014, Trinity’s wholly-owned subsidiaries included in the Leasing Group held equipment with a net book value of $1,909.1 million, excluding deferred profit, which is pledged as collateral for Leasing Group debt held by those subsidiaries, including equipment with a net book value of $46.9 million securing capital lease obligations. The net book value, excluding deferred profit, of unpledged equipment at March 31, 2014 was $774.3 million. See Note 11 Debt for the form, maturities, and descriptions of Leasing Group debt. | |||||||||||||||||||||||||||||
Partially-owned subsidiaries. Debt owed by TRIP Holdings and RIV 2013 and their respective subsidiaries is nonrecourse 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. TRIP Master Funding equipment with a net book value of $1,058.7 million, excluding deferred profit, resulting from the sale of railcars to TRIP Master Funding, is pledged as collateral for the TRIP Master Funding debt. TRL 2012 equipment with a net book value of $615.1 million, excluding deferred profit, resulting from the sale of railcars to TRL 2012, is pledged solely as collateral for the TRL 2012 secured railcar equipment notes. See Note 5 Partially-Owned Leasing Subsidiaries for a description of TRIP Holdings and RIV 2013. | |||||||||||||||||||||||||||||
Off Balance Sheet Arrangements. In prior years, the Leasing Group completed a series of financing transactions whereby railcars were sold to one or more separate independent owner trusts (“Trusts”). Each of the Trusts financed the purchase of the railcars with a combination of debt and equity. In each transaction, the equity participant in the Trust is considered to be the primary beneficiary of the Trust and therefore, the debt related to the Trust is not included as part of the consolidated financial statements. The Leasing Group, through wholly-owned, qualified subsidiaries, leased railcars from the Trusts under operating leases with terms of 22 years, and subleased the railcars to independent third-party customers under shorter term operating rental agreements. | |||||||||||||||||||||||||||||
These Leasing Group subsidiaries had total assets as of March 31, 2014 of $204.7 million, including cash of $81.4 million and railcars of $85.2 million. The subsidiaries' cash, railcars, and an interest in each sublease are pledged to collateralize the lease obligations to the Trusts and are included in the consolidated financial statements of the Company. Trinity does not guarantee the performance of the subsidiaries’ lease obligations. Certain ratios and cash deposits must be maintained by the Leasing Group’s subsidiaries in order for excess cash flow, as defined in the agreements, from the lease to third parties to be available to Trinity. Future operating lease obligations of the Leasing Group’s subsidiaries as well as future contractual minimum rental revenues related to these leases due to the Leasing Group are as follows: | |||||||||||||||||||||||||||||
Remaining nine months of 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Future operating lease obligations of Trusts’ railcars | $ | 33.6 | $ | 43 | $ | 40.1 | $ | 41.9 | $ | 45.3 | $ | 253.6 | $ | 457.5 | |||||||||||||||
Future contractual minimum rental revenues of Trusts’ railcars | $ | 49.6 | $ | 55.8 | $ | 45.4 | $ | 34.9 | $ | 24.4 | $ | 43.7 | $ | 253.8 | |||||||||||||||
Operating Lease Obligations. Future amounts due as well as future contractual minimum rental revenues related to operating leases other than leases discussed above are as follows: | |||||||||||||||||||||||||||||
Remaining nine months of 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Future operating lease obligations | $ | 9.6 | $ | 12.8 | $ | 12.7 | $ | 12.1 | $ | 12 | $ | 38.2 | $ | 97.4 | |||||||||||||||
Future contractual minimum rental revenues | $ | 14.5 | $ | 13.8 | $ | 12.7 | $ | 9.5 | $ | 5.7 | $ | 8.8 | $ | 65 | |||||||||||||||
Operating lease obligations totaling $20.8 million are guaranteed by Trinity Industries, Inc. and certain subsidiaries. See Note 6 of the December 31, 2013 Consolidated Financial Statements filed on Form 10-K for a detailed explanation of these financing transactions. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||||
Derivative Instruments | |||||||||||||||||||
We use derivative instruments to mitigate the impact of changes in interest rates, both in anticipation of future debt issuances and to offset interest rate variability of certain floating rate debt issuances outstanding. We also use derivative instruments to mitigate the impact of changes in natural gas and diesel fuel prices and changes in foreign currency exchange rates. Derivative instruments that are designated and qualify as cash flow hedges are accounted for in accordance with applicable accounting standards. See Note 3 Fair Value Accounting for discussion of how the Company valued its interest rate swaps at March 31, 2014. See Note 11 Debt for a description of the Company's debt instruments. | |||||||||||||||||||
Interest rate hedges | |||||||||||||||||||
Included in accompanying balance sheet | |||||||||||||||||||
at March 31, 2014 | |||||||||||||||||||
Notional | Interest | Liability | AOCL – | Noncontrolling | |||||||||||||||
Amount | Rate(1) | loss/ | Interest | ||||||||||||||||
(income) | |||||||||||||||||||
(in millions, except %) | |||||||||||||||||||
Expired hedges: | |||||||||||||||||||
2006 secured railcar equipment notes | $ | 200 | 4.87 | % | $ | — | $ | (1.5 | ) | $ | — | ||||||||
Promissory notes | $ | 370 | 5.34 | % | $ | — | $ | 3.3 | $ | — | |||||||||
TRIP Holdings warehouse loan | $ | 788.5 | 3.6 | % | $ | — | $ | 12.3 | $ | 15.2 | |||||||||
Open hedges: | |||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | $ | 64.4 | 2.62 | % | $ | 2.1 | $ | 0.9 | $ | 1.1 | |||||||||
Promissory notes | $ | 408.3 | 4.13 | % | $ | 18 | $ | 16.5 | $ | — | |||||||||
(1) | Weighted average fixed interest rate | ||||||||||||||||||
Effect on interest expense - increase/(decrease) | |||||||||||||||||||
Three Months Ended | Expected effect during next twelve months(1) | ||||||||||||||||||
March 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(in millions) | |||||||||||||||||||
Expired hedges: | |||||||||||||||||||
2006 secured railcar equipment notes | $ | (0.1 | ) | $ | (0.1 | ) | $ | (0.3 | ) | ||||||||||
Promissory notes | $ | 0.8 | $ | 0.8 | $ | 2.9 | |||||||||||||
TRIP Holdings warehouse loan | $ | 1.3 | $ | 2 | $ | 5.1 | |||||||||||||
Open hedges: | |||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | $ | 0.4 | $ | 0.5 | $ | 1.4 | |||||||||||||
Promissory notes | $ | 3.9 | $ | 3.9 | $ | 15.5 | |||||||||||||
(1) Based on the fair value of open hedges as of March 31, 2014 | |||||||||||||||||||
During 2005 and 2006, we entered into interest rate swap derivatives in anticipation of issuing our 2006 Secured Railcar Equipment Notes. These derivative instruments, with a notional amount of $200.0 million, were settled in 2006 and fixed the interest rate on a portion of the related debt issuance. These derivative instrument transactions are being accounted for as cash flow hedges with changes in the fair value of the instruments of $4.5 million in income recorded in AOCL through the date the related debt issuance closed in 2006. The balance is being amortized over the term of the related debt. The effect on interest expense is due to amortization of the AOCL balance. | |||||||||||||||||||
During 2006 and 2007, we entered into interest rate swap derivatives in anticipation of issuing our Promissory Notes. These derivative instruments, with a notional amount of $370.0 million, were settled in 2008 and fixed the interest rate on a portion of the related debt issuance. These derivative instrument transactions are being accounted for as cash flow hedges with changes in the fair value of the instruments of $24.5 million recorded as a loss in AOCL through the date the related debt issuance closed in 2008. The balance is being amortized over the term of the related debt. The effect on interest expense is due to amortization of the AOCL balance. | |||||||||||||||||||
In 2008, we entered into an interest rate swap derivative instrument, expiring in 2015, to fix the variable Libor component of the Promissory Notes. This derivative instrument transaction is being accounted for as a cash flow hedge. The effect on interest expense is primarily a result of monthly interest settlements. | |||||||||||||||||||
Between 2007 and 2009, TRIP Holdings, as required by the TRIP Warehouse Loan, entered into interest rate swap derivatives, all of which qualified as cash flow hedges, to reduce the effect of changes in variable interest rates in the TRIP Warehouse Loan. In July 2011, these interest rate hedges were terminated in connection with the refinancing of the TRIP Warehouse Loan. Balances included in AOCL at the date the hedges were terminated are being amortized over the expected life of the new debt with $5.1 million of additional interest expense expected to be recognized during the twelve months following March 31, 2014. Also in July 2011, TRIP Holdings’ wholly-owned subsidiary, TRIP Master Funding, entered into an interest rate swap derivative instrument, expiring in 2021, with an initial notional amount of $94.1 million to reduce the effect of changes in variable interest rates associated with the Class A-1b notes of the TRIP Master Funding secured railcar equipment notes. The effect on interest expense is primarily a result of monthly interest settlements. | |||||||||||||||||||
See Note 11 Debt regarding the related debt instruments. | |||||||||||||||||||
Other Derivatives | |||||||||||||||||||
Natural gas and diesel fuel | |||||||||||||||||||
We maintain a program to mitigate the impact of fluctuations in the price of natural gas and diesel fuel purchases. The intent of the program is to protect our operating profit from adverse price changes by entering into derivative instruments. For those instruments that do not qualify for hedge accounting treatment, any changes in their valuation are recorded directly to the consolidated statement of operations. The amounts recorded in the consolidated financial statements as of March 31, 2014 for these instruments was not significant. | |||||||||||||||||||
Foreign exchange hedge | |||||||||||||||||||
We enter into foreign exchange hedges to mitigate the impact on operating profit of unfavorable fluctuations in foreign currency exchange rates. The amounts recorded in the consolidated financial statements as of March 31, 2014 for these instruments was not significant. |
Property_Plant_and_Equipment
Property, Plant, and Equipment | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant, and Equipment | ' | |||||||
Property, Plant, and Equipment | ||||||||
The following table summarizes the components of property, plant, and equipment as of March 31, 2014 and December 31, 2013. | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Manufacturing/Corporate: | ||||||||
Land | $ | 60.2 | $ | 44.2 | ||||
Buildings and improvements | 476.9 | 463.2 | ||||||
Machinery and other | 855.4 | 832.5 | ||||||
Construction in progress | 72 | 79 | ||||||
1,464.50 | 1,418.90 | |||||||
Less accumulated depreciation | (764.1 | ) | (748.3 | ) | ||||
700.4 | 670.6 | |||||||
Leasing: | ||||||||
Wholly-owned subsidiaries: | ||||||||
Machinery and other | 10.6 | 10.3 | ||||||
Equipment on lease | 3,304.50 | 3,509.10 | ||||||
3,315.10 | 3,519.40 | |||||||
Less accumulated depreciation | (545.5 | ) | (554.8 | ) | ||||
2,769.60 | 2,964.60 | |||||||
Partially-owned subsidiaries: | ||||||||
Equipment on lease | 1,889.10 | 1,887.20 | ||||||
Less accumulated depreciation | (215.3 | ) | (202.1 | ) | ||||
1,673.80 | 1,685.10 | |||||||
Net deferred profit on railcars sold to the Leasing Group | (523.2 | ) | (549.7 | ) | ||||
$ | 4,620.60 | $ | 4,770.60 | |||||
Goodwill
Goodwill | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Goodwill | ' | |||||||
Goodwill | ||||||||
Goodwill by segment is as follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(as reported) | ||||||||
(in millions) | ||||||||
Rail Group | $ | 134.6 | $ | 134.6 | ||||
Construction Products Group | 126.9 | 126.9 | ||||||
Energy Equipment Group | 97 | 14.9 | ||||||
Railcar Leasing and Management Services Group | 1.8 | 1.8 | ||||||
$ | 360.3 | $ | 278.2 | |||||
The increase in the Energy Equipment Group goodwill as of March 31, 2014 is due to acquisition activities during the three months ended March 31, 2014. See Note 2 Acquisitions and Divestitures. |
Warranties
Warranties | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Warranties | ' | |||||||
Warranties | ||||||||
The changes in the accruals for warranties for the three months ended March 31, 2014 and 2013 are as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Beginning balance | $ | 14.7 | $ | 12.5 | ||||
Warranty costs incurred | (0.8 | ) | (1.5 | ) | ||||
Warranty originations and revisions | 2.3 | 2.6 | ||||||
Warranty expirations | (1.0 | ) | (1.0 | ) | ||||
Ending balance | $ | 15.2 | $ | 12.6 | ||||
Debt
Debt | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
Debt | ' | |||||||||||||||||||||||
Debt | ||||||||||||||||||||||||
The following table summarizes the components of debt as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Corporate – Recourse: | ||||||||||||||||||||||||
Revolving credit facility | $ | — | $ | — | ||||||||||||||||||||
Convertible subordinated notes | 450 | 450 | ||||||||||||||||||||||
Less: unamortized discount | (70.6 | ) | (74.1 | ) | ||||||||||||||||||||
379.4 | 375.9 | |||||||||||||||||||||||
Other | 0.9 | 0.9 | ||||||||||||||||||||||
380.3 | 376.8 | |||||||||||||||||||||||
Leasing – Recourse: | ||||||||||||||||||||||||
Capital lease obligations | 41.4 | 42.2 | ||||||||||||||||||||||
Total recourse debt | 421.7 | 419 | ||||||||||||||||||||||
Leasing – Non-recourse: | ||||||||||||||||||||||||
Wholly-owned subsidiaries: | ||||||||||||||||||||||||
2006 secured railcar equipment notes | 236.8 | 240.7 | ||||||||||||||||||||||
Promissory notes | 389.1 | 396.1 | ||||||||||||||||||||||
2009 secured railcar equipment notes | 196.6 | 199 | ||||||||||||||||||||||
2010 secured railcar equipment notes | 323.5 | 326.9 | ||||||||||||||||||||||
TILC warehouse facility | 133.2 | 152 | ||||||||||||||||||||||
1,279.20 | 1,314.70 | |||||||||||||||||||||||
Partially-owned subsidiaries: | ||||||||||||||||||||||||
TRL 2012 secured railcar equipment notes - RIV 2013 | 493 | 499.3 | ||||||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | 746.3 | 756.8 | ||||||||||||||||||||||
1,239.30 | 1,256.10 | |||||||||||||||||||||||
Total non–recourse debt | 2,518.50 | 2,570.80 | ||||||||||||||||||||||
Total debt | $ | 2,940.20 | $ | 2,989.80 | ||||||||||||||||||||
We have a $425.0 million unsecured revolving credit facility that matures on October 20, 2016. As of March 31, 2014, we had letters of credit issued under our revolving credit facility in an aggregate principal amount of $67.0 million, leaving $358.0 million available for borrowing. Other than these letters of credit, there were no borrowings under our revolving credit facility as of March 31, 2014, or for the three month period then ended. Of the outstanding letters of credit as of March 31, 2014, a total of $65.5 million is expected to expire in 2014 and the remainder in 2015. The majority of our letters of credit obligations support the Company’s various insurance programs and generally renew each year. Trinity’s revolving credit facility requires the maintenance of ratios related to minimum interest coverage for the leasing and manufacturing operations and maximum leverage. Borrowings under the credit facility bear interest at Libor plus 1.50% or prime plus 0.50%. As of March 31, 2014, we were in compliance with all such financial covenants. | ||||||||||||||||||||||||
The Company's 3 7/8% Convertible Subordinated Notes are recorded net of unamortized discount to reflect their underlying economics by capturing the value of the conversion option as borrowing costs. As of March 31, 2014 and December 31, 2013, capital in excess of par value included $92.8 million related to the estimated value of the Convertible Subordinated Notes’ conversion options, in accordance with ASC 470-20. Debt discount recorded in the consolidated balance sheet is being amortized through June 1, 2018 to yield an effective annual interest rate of 8.42% based upon the estimated market interest rate for comparable non-convertible debt as of the issuance date of the Convertible Subordinated Notes. Total interest expense recognized on the Convertible Subordinated Notes for the three months ended March 31, 2014 and 2013 is as follows: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Coupon rate interest | $ | 4.4 | $ | 4.4 | ||||||||||||||||||||
Amortized debt discount | 3.5 | 3.3 | ||||||||||||||||||||||
$ | 7.9 | $ | 7.7 | |||||||||||||||||||||
Holders of the Convertible Subordinated Notes may convert their notes under the following circumstances: 1) if the daily closing price of our common stock is greater than or equal to 130% of the conversion price during 20 of the last 30 trading days of the preceding calendar quarter; 2) upon notice of redemption; or 3) upon the occurrence of specified corporate transactions pursuant to the terms of the applicable indenture. Upon conversion, the Company is required to pay cash up to the aggregate principal amount of the Convertible Subordinated Notes to be converted. Any conversion obligation in excess of the aggregate principal amount of the Convertible Subordinated Notes to be converted may be settled in cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Company’s election. The conversion price, which is subject to adjustment upon the occurrence of certain events, was $50.69 per share as of March 31, 2014. The Convertible Subordinated Notes were subject to conversion as of April 1, 2014. Holders of the Convertible Subordinated Notes have the right to convert the notes until June 30, 2014. No holder has elected such conversion. See Note 17 Earnings Per Common Share for an explanation of the effects of the Convertible Subordinated Notes on earnings per share. The Company has not entered into any derivatives transactions associated with these notes. | ||||||||||||||||||||||||
The $475.0 million TILC warehouse loan facility, established to finance railcars owned by TILC, had $133.2 million outstanding and $341.8 million available as of March 31, 2014. The warehouse loan is a non-recourse obligation secured by a portfolio of railcars and operating leases, certain cash reserves, and other assets acquired and owned by the warehouse loan facility. The principal and interest of this indebtedness are paid from the cash flows of the underlying leases. Advances under the facility bear interest at a defined index rate plus a margin, for an all-in interest rate of 1.92% at March 31, 2014. In June 2013, the warehouse loan facility was renewed and extended through June 2015. Amounts outstanding at maturity, absent renewal, will be payable in three installments in December 2015, June 2016, and December 2016. | ||||||||||||||||||||||||
Terms and conditions of other debt, including recourse and non-recourse provisions, are described in Note 11 of the December 31, 2013 Consolidated Financial Statements filed on Form 10-K. | ||||||||||||||||||||||||
The remaining principal payments under existing debt agreements as of March 31, 2014 are as follows: | ||||||||||||||||||||||||
Remaining nine months of 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Recourse: | ||||||||||||||||||||||||
Corporate | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.3 | $ | — | $ | 450 | ||||||||||||
Leasing – capital lease obligations (Note 6) | 2.3 | 3.3 | 3.5 | 3.7 | 28.6 | — | ||||||||||||||||||
Non-recourse – leasing (Note 6): | ||||||||||||||||||||||||
2006 secured railcar equipment notes | 13 | 18.6 | 21.9 | 24 | 25.4 | 133.9 | ||||||||||||||||||
Promissory notes | 17 | 21.7 | 350.4 | — | — | — | ||||||||||||||||||
2009 secured railcar equipment notes | 7.5 | 9.6 | 6.5 | 6.3 | 6.5 | 160.2 | ||||||||||||||||||
2010 secured railcar equipment notes | 10.6 | 15.3 | 15 | 13.7 | 10 | 258.9 | ||||||||||||||||||
TILC warehouse facility | 3.5 | 4.3 | 3.9 | — | — | — | ||||||||||||||||||
TRL 2012 secured railcar equipment notes - | 18.7 | 23.5 | 22.6 | 23.1 | 23.4 | 381.7 | ||||||||||||||||||
RIV 2013 | ||||||||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | 29.6 | 35.7 | 29.3 | 20.4 | 19.9 | 611.4 | ||||||||||||||||||
Facility termination payments - TILC warehouse facility | — | 40.5 | 81 | — | — | — | ||||||||||||||||||
Total principal payments | $ | 102.4 | $ | 172.7 | $ | 534.3 | $ | 91.5 | $ | 113.8 | $ | 1,996.10 | ||||||||||||
Other_Net
Other, Net | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Other Income and Expenses [Abstract] | ' | |||||||
Other, Net | ' | |||||||
Other, Net | ||||||||
Other, net (income) expense consists of the following items: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Foreign currency exchange transactions | $ | 0.4 | $ | (0.3 | ) | |||
Gain on equity investments | (0.2 | ) | (0.1 | ) | ||||
Other | (0.6 | ) | (2.3 | ) | ||||
Other, net | $ | (0.4 | ) | $ | (2.7 | ) | ||
Other for the three months ended March 31, 2013 includes $1.7 million related to the change in fair value of certain equity repurchase agreements with an investor in TRIP Holdings. |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Taxes | ' | |||||||
Income Taxes | ||||||||
The provision for income taxes results in effective tax rates that differ from the statutory rates. The following is a reconciliation between the statutory U.S. Federal income tax rate and the Company’s effective income tax rate on income from continuing operations: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Statutory rate | 35 | % | 35 | % | ||||
State taxes | 0.9 | 2 | ||||||
Domestic production activities deduction | (2.2 | ) | (0.4 | ) | ||||
Noncontrolling interest in partially-owned subsidiaries | (1.2 | ) | — | |||||
Other, net | — | (0.3 | ) | |||||
Effective rate | 32.5 | % | 36.3 | % | ||||
Our effective tax rate reflects a current tax benefit available for U.S. manufacturing activities in addition to income attributable to the noncontrolling interests in TRIP Holdings and RIV 2013 for which no income tax expense is provided. See Note 5 Partially-Owned Leasing Subsidiaries for a further explanation of activities with respect to TRIP Holdings and RIV 2013. | ||||||||
Taxing authority examinations | ||||||||
The IRS field work for our 2006-2008 audit cycle has concluded and all issues, except for transfer pricing, have been agreed upon and tentatively settled. The transfer pricing issue has been appealed and we are working with both the U.S. and Mexican taxing authorities to coordinate taxation in a formal mutual agreement process (“MAP”). On September 30, 2013, we received the revenue agent report for the 2009-2011 audit cycle. All issues have been concluded and agreed to except for transfer pricing issues. These issues have been appealed and we have requested they be addressed in the same MAP of the 2006-2008 cycle. At this time, we cannot determine when the 2006-2008 cycle or the 2009-2011 cycles will close and all issues formally settled. | ||||||||
We have various subsidiaries in Mexico that file separate tax returns and are subject to examination by taxing authorities at different times. The 2007 tax year of one of our Mexican subsidiaries is still under review for transfer pricing purposes only, and its statute of limitations remains open through the later of the resolution of the MAP or August 2017. The remaining entities are generally open for their 2008 tax years and forward. | ||||||||
Our two Swiss subsidiaries, one of which is a holding company and the other of which is dormant, have been audited by the taxing authorities through 2008 and 2009, respectively. The statute of limitations in Switzerland is generally five years from the end of the tax year, but can be extended up to 15 years in certain cases if the audit has commenced during the original five-year period. We also currently have sales offices in Europe and Canada that are subject to various statutes of limitations with regard to their tax status. Generally, states’ statutes of limitations in the U.S. are open from 2003 forward due to the use of tax loss carryforwards in certain jurisdictions. | ||||||||
Unrecognized tax benefits | ||||||||
The change in unrecognized tax benefits for the three months ended March 31, 2014 and 2013 was as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Beginning balance | $ | 55 | $ | 48.7 | ||||
Additions for tax positions related to the current year | 1.2 | 1.1 | ||||||
Reductions for tax positions of prior years | (0.1 | ) | — | |||||
Ending balance | $ | 56.1 | $ | 49.8 | ||||
Additions for tax positions related to the current year in the amounts of $1.2 million and $1.1 million recorded in the three months ended March 31, 2014 and 2013, respectively, were amounts provided for tax positions that will be taken for Federal and state income tax purposes when we file those tax returns. | ||||||||
The reduction in tax positions of prior years of $0.1 million for the three months ended March 31, 2014, was primarily related to changes in state taxes. | ||||||||
The total amount of unrecognized tax benefits including interest and penalties at March 31, 2014 and 2013, that would affect the Company’s overall effective tax rate if recognized was $13.8 million and $12.1 million, respectively. There is a reasonable possibility that unrecognized Federal and state tax benefits will decrease by $0.1 million by March 31, 2015 due to settlements and lapses in statutes of limitations for assessing tax. | ||||||||
Trinity accounts for interest expense and penalties related to income tax issues as income tax expense. Accordingly, interest expense and penalties associated with an uncertain tax position are included in the income tax provision. The total amount of accrued interest and penalties as of March 31, 2014 and December 31, 2013 was $10.9 million and $10.8 million, respectively. Income tax expense for the three months ended March 31, 2014 and March 31, 2013, included an increase in income tax expense of $0.1 million and $0.2 million in interest expense and penalties, respectively, related to uncertain tax positions. |
Employee_Retirement_Plans
Employee Retirement Plans | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||
Employee Retirement Plans | ' | |||||||
Employee Retirement Plans | ||||||||
The following table summarizes the components of net retirement cost for the Company: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Expense Components | ||||||||
Service cost | $ | 0.1 | $ | 0.3 | ||||
Interest | 5 | 4.7 | ||||||
Expected return on plan assets | (7.7 | ) | (6.6 | ) | ||||
Amortization of actuarial loss | 0.3 | 1.2 | ||||||
Defined benefit expense | (2.3 | ) | (0.4 | ) | ||||
Profit sharing | 3.7 | 3.1 | ||||||
Net expense | $ | 1.4 | $ | 2.7 | ||||
Trinity contributed $4.1 million and $3.6 million to the Company's defined benefit pension plans for the three months ended March 31, 2014 and 2013, respectively. Total contributions to the Company's defined benefit pension plans in 2014 are expected to be approximately $15.3 million. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||
Changes in accumulated other comprehensive loss for the three months ended March 31, 2014 are as follows, net of tax: | ||||||||||||||||
Currency translation adjustments | Unrealized loss on derivative financial instruments | Net actuarial gains/(losses) of defined benefit plans | Accumulated | |||||||||||||
Other | ||||||||||||||||
Comprehensive | ||||||||||||||||
Loss | ||||||||||||||||
(in millions) | ||||||||||||||||
Balances at December 31, 2013 | $ | (16.5 | ) | $ | (18.7 | ) | $ | (43.0 | ) | $ | (78.2 | ) | ||||
Other comprehensive loss, net of tax, before reclassifications | — | (1.2 | ) | — | (1.2 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $2.0, $0.1, and $2.1 | — | 4.3 | 0.2 | 4.5 | ||||||||||||
Less: noncontrolling interest | — | (0.7 | ) | — | (0.7 | ) | ||||||||||
Other comprehensive income | — | 2.4 | 0.2 | 2.6 | ||||||||||||
Balances at March 31, 2014 | $ | (16.5 | ) | $ | (16.3 | ) | $ | (42.8 | ) | $ | (75.6 | ) | ||||
See Note 7 Derivative Instruments for information on the reclassification of amounts in accumulated other comprehensive loss into earnings. Reclassifications of unrealized before-tax losses on derivative financial instruments are included in interest expense in the Consolidated Statement of Operations. Approximately $0.2 million of the before-tax reclassification of net actuarial gains/(losses) of defined benefit plans are included in cost of revenues with the remainder included in selling, engineering, and administrative expenses in the Consolidated Statement of Operations for the three months ended March 31, 2014. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
Stock-based compensation totaled approximately $10.9 million and $9.0 million for the three months ended March 31, 2014 and 2013, respectively. |
Earnings_Per_Common_Share
Earnings Per Common Share | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||||||||
Earnings Per Common Share | ' | |||||||||||||||||||||
Earnings Per Common Share | ||||||||||||||||||||||
Basic net income attributable to Trinity Industries, Inc. per common share is computed by dividing net income attributable to Trinity remaining after allocation to unvested restricted shares by the weighted average number of basic unrestricted common shares outstanding for the period. Except when the effect would be antidilutive, the calculation of diluted net income attributable to Trinity per common share includes 1) the net impact of unvested restricted shares and shares that could be issued under outstanding stock options and 2) the incremental shares calculated by dividing the value of the conversion obligation in excess of the Convertible Subordinated Notes' aggregate principal amount by the average price of the Company's common stock during the period. The effect of the Convertible Subordinated Notes was antidilutive for the three months ended March 31, 2013. Total weighted average restricted shares and antidilutive stock options were 3.8 million shares and 3.2 million shares for the three months ended March 31, 2014 and March 31, 2013, respectively. | ||||||||||||||||||||||
The computation of basic and diluted net income attributable to Trinity Industries, Inc. follows. | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
31-Mar-14 | 31-Mar-13 | |||||||||||||||||||||
Income | Average | EPS | Income | Average | EPS | |||||||||||||||||
(Loss) | Shares | (Loss) | Shares | |||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||
Net income from continuing operations | $ | 233.3 | $ | 72.2 | ||||||||||||||||||
Less: net income (loss) from continuing operations attributable to noncontrolling interest | 6.6 | (0.3 | ) | |||||||||||||||||||
Net income from continuing operations attributable to Trinity Industries, Inc. | 226.7 | 72.5 | ||||||||||||||||||||
Unvested restricted share participation | (7.8 | ) | (2.3 | ) | ||||||||||||||||||
Net income from continuing operations attributable to Trinity Industries, Inc. – basic | 218.9 | 75.1 | $ | 2.91 | 70.2 | 76.9 | $ | 0.91 | ||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||
Stock options | — | — | — | 0.1 | ||||||||||||||||||
Convertible subordinated notes | 0.2 | 1.9 | — | — | ||||||||||||||||||
Net income from continuing operations attributable to Trinity Industries, Inc. – diluted | $ | 219.1 | 77 | $ | 2.85 | $ | 70.2 | 77 | $ | 0.91 | ||||||||||||
Net income (loss) from discontinued operations, net of taxes | $ | (0.3 | ) | $ | 6.6 | |||||||||||||||||
Unvested restricted share participation | — | (0.2 | ) | |||||||||||||||||||
Net income (loss) from discontinued operations, net of taxes – basic | (0.3 | ) | 75.1 | $ | — | 6.4 | 76.9 | $ | 0.08 | |||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||
Stock options | — | — | — | 0.1 | ||||||||||||||||||
Convertible subordinated notes | — | 1.9 | — | — | ||||||||||||||||||
Net income (loss) from discontinued operations, net of taxes – diluted | $ | (0.3 | ) | 77 | $ | — | $ | 6.4 | 77 | $ | 0.08 | |||||||||||
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Contingencies | |
Highway Products Litigation | |
As previously reported, on January 28, 2013, the United States filed a “Notice of Election to Decline Intervention” in a False Claims Act (Qui Tam) complaint filed under seal on March 6, 2012 in the United States District Court for the Eastern District of Texas, Marshall Division styled Joshua Harman, on behalf of the United States of America, Plaintiff/Relator (“Mr. Harman”) v. Trinity Industries, Inc., Defendant, Case 2:12-cv-00089-JRG. Although the Company did not receive service of process with respect to the Original Complaint, the Company was served with Mr. Harman's Amended Complaint on May 17, 2013. The trial is currently set by the U.S. District Court for July 14, 2014. Mr. Harman alleges the Company presented false or fraudulent claims, records or statements to the United States to obtain payment or approval related to the Company's ET-Plus guardrail end-terminal, and seeks damages equaling the cost to recall and replace all installations of the ET-Plus trebled, plus civil penalties, costs, and interest. The Company notes that since its introduction in 2000, including all improvement modifications thereafter, the ET-Plus has satisfied the testing criteria required by the governing National Cooperative Highway Research Program Report 350 and the product approval requirements of the Federal Highway Administration. The Company intends to vigorously defend against Mr. Harman's allegations which will likely result in certain legal expenses. We do not believe that a loss is probable nor can a range of losses be determined. Accordingly, no accrual or range of loss has been included in the accompanying consolidated financial statements. | |
Train Derailment | |
The Company has been named as a respondent in litigation filed July 15, 2013 in Superior Court, Province of Quebec, District of Saint-Francois, styled Yannick Gagne and Guy Ouellet vs. Rail World, Inc., et al. The Company was also named as a defendant in multiple cases filed by the estates of decedents in the Circuit Court of Cook County, Illinois seeking damages for alleged wrongful death and property damage arising from the July 2013 crude oil unit train derailment in Lac-Mégantic, Quebec. However the Illinois cases have since been ordered transferred to the United States District Court for the District of Maine. This transfer prompted plaintiffs to seek dismissal of these actions. Nonetheless, the Maine court has not indicated those dismissals were effectuated and the cases were transferred to federal court in Maine and have been assigned new case numbers. The litigation filed in Quebec is seeking “class” status which, if certified, could lead to multiple individuals and business entities becoming class members. The Company’s tank car manufacturing subsidiary manufactured 35 of the 72 tank railcars involved in the derailment. A partially-owned subsidiary of the Company owned and leased to a third party 13 of the railcars involved in the incident, which lessee is also named as a defendant in the Province of Quebec litigation. The Company could be named in similar litigation involving other affected plaintiffs, but the ultimate number of claims, and the jurisdiction in which such claims are filed, may vary. We do not believe at this time that a loss is probable nor can a range of losses be determined. Accordingly, no accrual or range of loss has been included in the accompanying consolidated financial statements. | |
Railworthiness Directive | |
As previously reported, in 2011 the Company received the approval of the Federal Railroad Administration to implement a voluntary recertification of 948 tank cars owned or managed by the Company’s wholly-owned, railcar leasing subsidiary and used in transporting poison inhalation hazard (“PIH”) materials. The recertification process was performed in conjunction with the normal federally mandated inspection cycle for tank cars in PIH service and is substantially complete as of March 31, 2014. Maintenance costs associated with this recertification process were expensed as incurred. | |
Other Matters | |
As previously reported, Trinity Structural Towers, Inc., a wholly-owned subsidiary of the Company, is in litigation with a structural wind towers customer for the customer’s breach of a long-term supply contract for the manufacture of towers. While the customer partially performed the contract, it ultimately defaulted on its purchase obligation and did not remedy such default following written notice. | |
The Company is involved in claims and lawsuits incidental to our business arising from various matters including product warranty, personal injury, environmental issues, workplace laws, and various governmental regulations. The Company evaluates its exposure to such claims and suits periodically and establishes accruals for these contingencies when a range of loss can be reasonably estimated. The range of reasonably possible losses for such matters, taking into consideration our rights in indemnity and recourse to third parties is $9.7 million to $30.4 million. At March 31, 2014, total accruals of $20.1 million, including environmental and workplace matters described below, are included in accrued liabilities in the accompanying consolidated balance sheet. The Company believes any additional liability would not be material to its financial position or results of operations. | |
Trinity is subject to remedial orders and Federal, state, local, and foreign laws and regulations relating to the environment and the workplace. The Company has reserved $11.3 million to cover our probable and estimable liabilities with respect to the investigations, assessments, and remedial responses to such matters, taking into account currently available information and our contractual rights to indemnification and recourse to third parties. However, estimates of liability arising from future proceedings, assessments, or remediation are inherently imprecise. Accordingly, there can be no assurance that we will not become involved in future litigation or other proceedings involving the environment and the workplace or, if we are found to be responsible or liable in any such litigation or proceeding, that such costs would not be material to the Company. We believe that we are currently in substantial compliance with environmental and workplace laws and regulations. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The foregoing consolidated financial statements are unaudited and have been prepared from the books and records of Trinity Industries, Inc. and its consolidated subsidiaries (“Trinity”, “Company”, “we”, or “our”) including the accounts of its wholly-owned subsidiaries and its partially-owned subsidiaries, TRIP Rail Holdings LLC (“TRIP Holdings”) and RIV 2013 Rail Holdings LLC ("RIV 2013"), in which the Company has controlling interest. In our opinion, all normal and recurring adjustments necessary for a fair presentation of the financial position of the Company as of March 31, 2014, and the results of operations and cash flows for the three months ended March 31, 2014 and 2013, have been made in conformity with generally accepted accounting principles. All significant intercompany accounts and transactions have been eliminated. Because of seasonal and other factors, the results of operations for the three months ended March 31, 2014 may not be indicative of expected results of operations for the year ending December 31, 2014. These interim financial statements and notes are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with the audited consolidated financial statements of the Company included in its Form 10-K for the year ended December 31, 2013. | |
Stockholders' Equity | ' |
Stockholders' Equity | |
In March 2014, the Company’s Board of Directors authorized a new $250 million share repurchase program, effective March 7, 2014, that will expire on December 31, 2015. The new program replaced the Company's previously authorized $200 million share repurchase program. Under the new program, 138,273 shares were repurchased during the three months ended March 31, 2014, at a cost of approximately $10.0 million. Certain shares of stock repurchased during March 2014, totaling $2.5 million, were cash settled in April 2014 in accordance with normal settlement practices. No shares were repurchased under the prior program during the three months ended March 31, 2013. | |
Revenue Recognition | ' |
Revenue Recognition | |
Revenues for contracts providing for a large number of units and few deliveries are recorded as the individual units are produced, inspected, and accepted by the customer as the risk of loss passes to the customer upon delivery acceptance on these contracts. This occurs primarily in the Rail and Inland Barge Groups. Revenue from rentals and operating leases, including contracts which contain non-level fixed rental payments, is recognized monthly on a straight-line basis. Revenue is recognized from the sales of railcars from the lease fleet on a gross basis in leasing revenues and cost of revenues if the railcar has been owned for one year or less at the time of sale. Sales of railcars from the lease fleet that have been owned for more than one year are recognized as a net gain or loss from the disposal of a long-term asset. Fees for shipping and handling are recorded as revenue. For all other products, we recognize revenue when products are shipped or services are provided. | |
Financial Instruments | ' |
Financial Instruments | |
The Company considers all highly liquid debt instruments to be either cash and cash equivalents if purchased with a maturity of three months or less, or short-term marketable securities if purchased with a maturity of more than three months and less than one year. The Company intends to hold its short-term marketable securities until they are redeemed at their maturity date and believes that under the "more likely than not" criteria, the Company will not be required to sell the securities before recovery of their amortized cost bases, which may be maturity. | |
Financial instruments that potentially subject the Company to a concentration of credit risk are primarily cash investments including restricted cash, short-term marketable securities, and receivables. The Company places its cash investments and short-term marketable securities in bank deposits and investment grade, short-term debt instruments and limits the amount of credit exposure to any one commercial issuer. Concentrations of credit risk with respect to receivables are limited due to control procedures that monitor the credit worthiness of customers, the large number of customers in the Company's customer base, and their dispersion across different industries and geographic areas. As receivables are generally unsecured, the Company maintains an allowance for doubtful accounts based upon the expected collectibility of all receivables. Receivable balances determined to be uncollectible are charged against the allowance. The carrying values of cash, short-term marketable securities, receivables, and accounts payable are considered to be representative of their respective fair values. | |
Reclassifications | ' |
Reclassifications | |
Certain prior year balances have been reclassified in the consolidated statements of cash flows to conform to the 2014 presentation. |
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Acquisition and divestiture activity | ' | |||||||
The Company's acquisition and divestiture activities are summarized below: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Acquisitions: | ||||||||
Purchase price | $ | 117.6 | $ | 53.8 | ||||
Net cash paid | $ | 112.6 | $ | 9.1 | ||||
Goodwill recorded | $ | 82.1 | $ | 2.5 | ||||
Divestitures: | ||||||||
Proceeds | $ | — | $ | 35.6 | ||||
Gain recognized | $ | — | $ | 12.4 | ||||
Goodwill charged off | $ | — | $ | 4.8 | ||||
Condensed results of operations for the ready-mix concrete operations | ' | |||||||
Condensed results of operations for the ready-mix concrete operations for the three months ended March 31, 2014 and 2013 are as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Revenues | $ | — | $ | 31.6 | ||||
Loss from discontinued operations before income taxes | $ | (0.5 | ) | $ | (0.7 | ) | ||
Income tax benefit | (0.2 | ) | (0.3 | ) | ||||
Net loss from discontinued operations | $ | (0.3 | ) | $ | (0.4 | ) |
Fair_Value_Accounting_Tables
Fair Value Accounting (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Assets and liabilities measured at fair value on recurring basis | ' | |||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below: | ||||||||||||||||
Fair Value Measurement as of March 31, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 159.7 | $ | — | $ | — | $ | 159.7 | ||||||||
Restricted cash | 231.4 | — | — | 231.4 | ||||||||||||
Total assets | $ | 391.1 | $ | — | $ | — | $ | 391.1 | ||||||||
Liabilities: | ||||||||||||||||
Interest rate hedges:(1) | ||||||||||||||||
Wholly-owned subsidiaries | $ | — | $ | 18 | $ | — | $ | 18 | ||||||||
Partially-owned subsidiaries | — | 2.1 | — | 2.1 | ||||||||||||
Total liabilities | $ | — | $ | 20.1 | $ | — | $ | 20.1 | ||||||||
Fair Value Measurement as of December 31, 2013 | ||||||||||||||||
(in millions) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 230.6 | $ | — | $ | — | $ | 230.6 | ||||||||
Restricted cash | 260.7 | — | — | 260.7 | ||||||||||||
Total assets | $ | 491.3 | $ | — | $ | — | $ | 491.3 | ||||||||
Liabilities: | ||||||||||||||||
Interest rate hedges:(1) | ||||||||||||||||
Wholly-owned subsidiaries | $ | — | $ | 21.7 | $ | — | $ | 21.7 | ||||||||
Partially-owned subsidiaries | — | 2.1 | — | 2.1 | ||||||||||||
Total liabilities | $ | — | $ | 23.8 | $ | — | $ | 23.8 | ||||||||
(1) Included in accrued liabilities on the consolidated balance sheet. | ||||||||||||||||
Carrying amounts and estimated fair values of long-term debt | ' | |||||||||||||||
The carrying amounts and estimated fair values of our long-term debt are as follows: | ||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||||
(in millions) | ||||||||||||||||
Recourse: | ||||||||||||||||
Convertible subordinated notes | $ | 450 | $ | 707 | $ | 450 | $ | 593.4 | ||||||||
Less: unamortized discount | (70.6 | ) | (74.1 | ) | ||||||||||||
379.4 | 375.9 | |||||||||||||||
Capital lease obligations | 41.4 | 41.4 | 42.2 | 42.2 | ||||||||||||
Other | 0.9 | 0.9 | 0.9 | 0.9 | ||||||||||||
421.7 | 749.3 | 419 | 636.5 | |||||||||||||
Non-recourse: | ||||||||||||||||
2006 secured railcar equipment notes | 236.8 | 257.3 | 240.7 | 259.2 | ||||||||||||
Promissory notes | 389.1 | 383.3 | 396.1 | 389.6 | ||||||||||||
2009 secured railcar equipment notes | 196.6 | 230.3 | 199 | 229.5 | ||||||||||||
2010 secured railcar equipment notes | 323.5 | 345.4 | 326.9 | 342.7 | ||||||||||||
TILC warehouse facility | 133.2 | 133.2 | 152 | 152 | ||||||||||||
TRL 2012 secured railcar equipment notes - RIV 2013 | 493 | 479.2 | 499.3 | 483.4 | ||||||||||||
TRIP Master Funding secured railcar equipment notes | 746.3 | 811.4 | 756.8 | 819.8 | ||||||||||||
2,518.50 | 2,640.10 | 2,570.80 | 2,676.20 | |||||||||||||
Total | $ | 2,940.20 | $ | 3,389.40 | $ | 2,989.80 | $ | 3,312.70 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Financial information from continuing operations for segments | ' | |||||||||||||||
The financial information from continuing operations for these segments is shown in the tables below. We operate principally in North America. | ||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||
Revenues | Operating Profit (Loss) | |||||||||||||||
External | Intersegment | Total | ||||||||||||||
(in millions) | ||||||||||||||||
Rail Group | $ | 601.1 | $ | 256.3 | $ | 857.4 | $ | 167.5 | ||||||||
Construction Products Group | 112.2 | 0.9 | 113.1 | 21.7 | ||||||||||||
Inland Barge Group | 136.9 | — | 136.9 | 26.7 | ||||||||||||
Energy Equipment Group | 167 | 43.6 | 210.6 | 22.9 | ||||||||||||
Railcar Leasing and Management Services Group | 442.2 | 0.9 | 443.1 | 230.3 | ||||||||||||
All Other | 1.1 | 22.1 | 23.2 | (5.4 | ) | |||||||||||
Segment Totals before Eliminations and Corporate | 1,460.50 | 323.8 | 1,784.30 | 463.7 | ||||||||||||
Corporate | — | — | — | (23.1 | ) | |||||||||||
Eliminations – Lease subsidiary | — | (249.1 | ) | (249.1 | ) | (49.3 | ) | |||||||||
Eliminations – Other | — | (74.7 | ) | (74.7 | ) | — | ||||||||||
Consolidated Total | $ | 1,460.50 | $ | — | $ | 1,460.50 | $ | 391.3 | ||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||
Revenues | Operating Profit (Loss) | |||||||||||||||
External | Intersegment | Total | ||||||||||||||
(in millions) | ||||||||||||||||
Rail Group | $ | 423.6 | $ | 201.9 | $ | 625.5 | $ | 102.9 | ||||||||
Construction Products Group | 98 | 5.8 | 103.8 | 7.7 | ||||||||||||
Inland Barge Group | 147.4 | — | 147.4 | 24.3 | ||||||||||||
Energy Equipment Group | 128.5 | 26.2 | 154.7 | 14.9 | ||||||||||||
Railcar Leasing and Management Services Group | 134.4 | — | 134.4 | 61.6 | ||||||||||||
All Other | 1 | 18.3 | 19.3 | (2.6 | ) | |||||||||||
Segment Totals before Eliminations and Corporate | 932.9 | 252.2 | 1,185.10 | 208.8 | ||||||||||||
Corporate | — | — | — | (16.6 | ) | |||||||||||
Eliminations – Lease subsidiary | — | (198.0 | ) | (198.0 | ) | (32.4 | ) | |||||||||
Eliminations – Other | — | (54.2 | ) | (54.2 | ) | (0.3 | ) | |||||||||
Consolidated Total | $ | 932.9 | $ | — | $ | 932.9 | $ | 159.5 | ||||||||
Railcar_Leasing_and_Management1
Railcar Leasing and Management Services Group (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Future Contractual Minimum Rental Revenues on Leases [Line Items] | ' | ||||||||||||||||||||||||||||
Selected consolidating financial information for the Leasing Group | ' | ||||||||||||||||||||||||||||
Selected consolidating financial information for the Leasing Group is as follows: | |||||||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||||||
Leasing Group | |||||||||||||||||||||||||||||
Wholly- | Partially-Owned Subsidiaries | Manufacturing/ | Total | ||||||||||||||||||||||||||
Owned | Corporate | ||||||||||||||||||||||||||||
Subsidiaries | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Cash, cash equivalents, and short-term marketable securities | $ | 2 | $ | — | $ | 786.6 | $ | 788.6 | |||||||||||||||||||||
Property, plant, and equipment, net | $ | 2,769.60 | $ | 1,673.80 | $ | 700.4 | $ | 5,143.80 | |||||||||||||||||||||
Net deferred profit on railcars sold to | (523.2 | ) | |||||||||||||||||||||||||||
the Leasing Group | |||||||||||||||||||||||||||||
Consolidated property, plant and equipment, net | $ | 4,620.60 | |||||||||||||||||||||||||||
Restricted cash | $ | 154.7 | $ | 76.7 | $ | — | $ | 231.4 | |||||||||||||||||||||
Debt: | |||||||||||||||||||||||||||||
Recourse | $ | 41.4 | $ | — | $ | 450.9 | $ | 492.3 | |||||||||||||||||||||
Less: unamortized discount | — | — | (70.6 | ) | (70.6 | ) | |||||||||||||||||||||||
41.4 | — | 380.3 | 421.7 | ||||||||||||||||||||||||||
Non-recourse | 1,279.20 | 1,239.30 | — | 2,518.50 | |||||||||||||||||||||||||
Total debt | $ | 1,320.60 | $ | 1,239.30 | $ | 380.3 | $ | 2,940.20 | |||||||||||||||||||||
Net deferred tax liabilities | $ | 646.3 | $ | — | $ | (3.4 | ) | $ | 642.9 | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Leasing Group | |||||||||||||||||||||||||||||
Wholly- | Partially-Owned Subsidiaries | Manufacturing/ | Total | ||||||||||||||||||||||||||
Owned | Corporate | ||||||||||||||||||||||||||||
Subsidiaries | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Cash, cash equivalents, and short-term marketable securities | $ | 3.5 | $ | — | $ | 574.7 | $ | 578.2 | |||||||||||||||||||||
Property, plant, and equipment, net | $ | 2,964.60 | $ | 1,685.10 | $ | 670.6 | $ | 5,320.30 | |||||||||||||||||||||
Net deferred profit on railcars sold to | (549.7 | ) | |||||||||||||||||||||||||||
the Leasing Group | |||||||||||||||||||||||||||||
Consolidated property, plant and equipment, net | $ | 4,770.60 | |||||||||||||||||||||||||||
Restricted cash | $ | 183.6 | $ | 77.1 | $ | — | $ | 260.7 | |||||||||||||||||||||
Debt: | |||||||||||||||||||||||||||||
Recourse | $ | 42.2 | $ | — | $ | 450.9 | $ | 493.1 | |||||||||||||||||||||
Less: unamortized discount | — | — | (74.1 | ) | (74.1 | ) | |||||||||||||||||||||||
42.2 | — | 376.8 | 419 | ||||||||||||||||||||||||||
Non-recourse | 1,314.70 | 1,256.10 | — | 2,570.80 | |||||||||||||||||||||||||
Total debt | $ | 1,356.90 | $ | 1,256.10 | $ | 376.8 | $ | 2,989.80 | |||||||||||||||||||||
Net deferred tax liabilities | $ | 671.9 | $ | — | $ | (32.5 | ) | $ | 639.4 | ||||||||||||||||||||
See Note 5 Partially-Owned Leasing Subsidiaries and Note 11 Debt for a further discussion regarding the Company’s investment in its partially-owned leasing subsidiaries and the related indebtedness. | |||||||||||||||||||||||||||||
Selected consolidating income statement information for the Leasing Group | ' | ||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2014 | 2013 | Percent | |||||||||||||||||||||||||||
($ in millions) | Change | ||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Leasing and management | $ | 150.2 | $ | 134.3 | 11.8 | % | |||||||||||||||||||||||
Sales of railcars owned one year or less at the time of sale | 292.9 | 0.1 | * | ||||||||||||||||||||||||||
Total revenues | $ | 443.1 | $ | 134.4 | 229.7 | ||||||||||||||||||||||||
Operating profit: | |||||||||||||||||||||||||||||
Leasing and management | $ | 63.9 | $ | 54.8 | 16.6 | ||||||||||||||||||||||||
Railcar sales: | |||||||||||||||||||||||||||||
Railcars owned one year or less at the time of sale | 88.9 | — | |||||||||||||||||||||||||||
Railcars owned more than one year at the time of sale | 77.5 | 6.8 | |||||||||||||||||||||||||||
Total operating profit | $ | 230.3 | $ | 61.6 | 273.9 | ||||||||||||||||||||||||
Operating profit margin: | |||||||||||||||||||||||||||||
Leasing and management | 42.5 | % | 40.8 | % | |||||||||||||||||||||||||
Railcar sales | * | * | |||||||||||||||||||||||||||
Total operating profit margin | 52 | % | 45.8 | % | |||||||||||||||||||||||||
Selected expense information(1): | |||||||||||||||||||||||||||||
Depreciation | $ | 32.5 | $ | 31 | 4.8 | ||||||||||||||||||||||||
Maintenance | $ | 21 | $ | 19 | 10.5 | ||||||||||||||||||||||||
Rent | $ | 13.3 | $ | 13.4 | (0.7 | ) | |||||||||||||||||||||||
Interest: | |||||||||||||||||||||||||||||
External | $ | 37.3 | $ | 40.9 | |||||||||||||||||||||||||
Intercompany | — | 2.7 | |||||||||||||||||||||||||||
Total interest expense | $ | 37.3 | $ | 43.6 | (14.4 | ) | |||||||||||||||||||||||
* Not meaningful | |||||||||||||||||||||||||||||
(1) Depreciation, maintenance, and rent expense are components of operating profit. Amortization of deferred profit on railcars sold from the Rail Group to the Leasing Group is included in the operating profits of the Leasing Group resulting in the recognition of depreciation expense based on the Company's original manufacturing cost of the railcars. Interest expense is not a component of operating profit and includes the effect of hedges. Intercompany interest expense arises from Trinity’s previous ownership of a portion of TRIP Holdings’ Senior Secured Notes and is eliminated in consolidation. See Note 11 Debt. | |||||||||||||||||||||||||||||
Future contractual minimum rental revenues on leases | ' | ||||||||||||||||||||||||||||
Future contractual minimum rental revenues on leases are as follows: | |||||||||||||||||||||||||||||
Remaining nine months of 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Future contractual minimum rental revenue | $ | 318.8 | $ | 364 | $ | 304 | $ | 242.4 | $ | 177.5 | $ | 280.5 | $ | 1,687.20 | |||||||||||||||
Operating leases with the Trusts | ' | ||||||||||||||||||||||||||||
Future Contractual Minimum Rental Revenues on Leases [Line Items] | ' | ||||||||||||||||||||||||||||
Future operating lease obligations and future contractual minimum rental revenues | ' | ||||||||||||||||||||||||||||
Future operating lease obligations of the Leasing Group’s subsidiaries as well as future contractual minimum rental revenues related to these leases due to the Leasing Group are as follows: | |||||||||||||||||||||||||||||
Remaining nine months of 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Future operating lease obligations of Trusts’ railcars | $ | 33.6 | $ | 43 | $ | 40.1 | $ | 41.9 | $ | 45.3 | $ | 253.6 | $ | 457.5 | |||||||||||||||
Future contractual minimum rental revenues of Trusts’ railcars | $ | 49.6 | $ | 55.8 | $ | 45.4 | $ | 34.9 | $ | 24.4 | $ | 43.7 | $ | 253.8 | |||||||||||||||
Operating leases other than leases with the Trusts | ' | ||||||||||||||||||||||||||||
Future Contractual Minimum Rental Revenues on Leases [Line Items] | ' | ||||||||||||||||||||||||||||
Future operating lease obligations and future contractual minimum rental revenues | ' | ||||||||||||||||||||||||||||
Future amounts due as well as future contractual minimum rental revenues related to operating leases other than leases discussed above are as follows: | |||||||||||||||||||||||||||||
Remaining nine months of 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Future operating lease obligations | $ | 9.6 | $ | 12.8 | $ | 12.7 | $ | 12.1 | $ | 12 | $ | 38.2 | $ | 97.4 | |||||||||||||||
Future contractual minimum rental revenues | $ | 14.5 | $ | 13.8 | $ | 12.7 | $ | 9.5 | $ | 5.7 | $ | 8.8 | $ | 65 | |||||||||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||
Interest rate hedges | ' | ||||||||||||||||||
Interest rate hedges | |||||||||||||||||||
Included in accompanying balance sheet | |||||||||||||||||||
at March 31, 2014 | |||||||||||||||||||
Notional | Interest | Liability | AOCL – | Noncontrolling | |||||||||||||||
Amount | Rate(1) | loss/ | Interest | ||||||||||||||||
(income) | |||||||||||||||||||
(in millions, except %) | |||||||||||||||||||
Expired hedges: | |||||||||||||||||||
2006 secured railcar equipment notes | $ | 200 | 4.87 | % | $ | — | $ | (1.5 | ) | $ | — | ||||||||
Promissory notes | $ | 370 | 5.34 | % | $ | — | $ | 3.3 | $ | — | |||||||||
TRIP Holdings warehouse loan | $ | 788.5 | 3.6 | % | $ | — | $ | 12.3 | $ | 15.2 | |||||||||
Open hedges: | |||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | $ | 64.4 | 2.62 | % | $ | 2.1 | $ | 0.9 | $ | 1.1 | |||||||||
Promissory notes | $ | 408.3 | 4.13 | % | $ | 18 | $ | 16.5 | $ | — | |||||||||
(1) | Weighted average fixed interest rate | ||||||||||||||||||
Interest rate hedges | ' | ||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||
Effect on Statements of Operations | ' | ||||||||||||||||||
Effect on interest expense - increase/(decrease) | |||||||||||||||||||
Three Months Ended | Expected effect during next twelve months(1) | ||||||||||||||||||
March 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(in millions) | |||||||||||||||||||
Expired hedges: | |||||||||||||||||||
2006 secured railcar equipment notes | $ | (0.1 | ) | $ | (0.1 | ) | $ | (0.3 | ) | ||||||||||
Promissory notes | $ | 0.8 | $ | 0.8 | $ | 2.9 | |||||||||||||
TRIP Holdings warehouse loan | $ | 1.3 | $ | 2 | $ | 5.1 | |||||||||||||
Open hedges: | |||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | $ | 0.4 | $ | 0.5 | $ | 1.4 | |||||||||||||
Promissory notes | $ | 3.9 | $ | 3.9 | $ | 15.5 | |||||||||||||
(1) Based on the fair value of open hedges as of March 31, 2014 | |||||||||||||||||||
Property_Plant_and_Equipment_T
Property, Plant, and Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Components of property, plant, and equipment | ' | |||||||
The following table summarizes the components of property, plant, and equipment as of March 31, 2014 and December 31, 2013. | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Manufacturing/Corporate: | ||||||||
Land | $ | 60.2 | $ | 44.2 | ||||
Buildings and improvements | 476.9 | 463.2 | ||||||
Machinery and other | 855.4 | 832.5 | ||||||
Construction in progress | 72 | 79 | ||||||
1,464.50 | 1,418.90 | |||||||
Less accumulated depreciation | (764.1 | ) | (748.3 | ) | ||||
700.4 | 670.6 | |||||||
Leasing: | ||||||||
Wholly-owned subsidiaries: | ||||||||
Machinery and other | 10.6 | 10.3 | ||||||
Equipment on lease | 3,304.50 | 3,509.10 | ||||||
3,315.10 | 3,519.40 | |||||||
Less accumulated depreciation | (545.5 | ) | (554.8 | ) | ||||
2,769.60 | 2,964.60 | |||||||
Partially-owned subsidiaries: | ||||||||
Equipment on lease | 1,889.10 | 1,887.20 | ||||||
Less accumulated depreciation | (215.3 | ) | (202.1 | ) | ||||
1,673.80 | 1,685.10 | |||||||
Net deferred profit on railcars sold to the Leasing Group | (523.2 | ) | (549.7 | ) | ||||
$ | 4,620.60 | $ | 4,770.60 | |||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Goodwill by segment | ' | |||||||
Goodwill by segment is as follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(as reported) | ||||||||
(in millions) | ||||||||
Rail Group | $ | 134.6 | $ | 134.6 | ||||
Construction Products Group | 126.9 | 126.9 | ||||||
Energy Equipment Group | 97 | 14.9 | ||||||
Railcar Leasing and Management Services Group | 1.8 | 1.8 | ||||||
$ | 360.3 | $ | 278.2 | |||||
Warranties_Tables
Warranties (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Changes in the accruals for warranties | ' | |||||||
The changes in the accruals for warranties for the three months ended March 31, 2014 and 2013 are as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Beginning balance | $ | 14.7 | $ | 12.5 | ||||
Warranty costs incurred | (0.8 | ) | (1.5 | ) | ||||
Warranty originations and revisions | 2.3 | 2.6 | ||||||
Warranty expirations | (1.0 | ) | (1.0 | ) | ||||
Ending balance | $ | 15.2 | $ | 12.6 | ||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
Components of debt | ' | |||||||||||||||||||||||
The following table summarizes the components of debt as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Corporate – Recourse: | ||||||||||||||||||||||||
Revolving credit facility | $ | — | $ | — | ||||||||||||||||||||
Convertible subordinated notes | 450 | 450 | ||||||||||||||||||||||
Less: unamortized discount | (70.6 | ) | (74.1 | ) | ||||||||||||||||||||
379.4 | 375.9 | |||||||||||||||||||||||
Other | 0.9 | 0.9 | ||||||||||||||||||||||
380.3 | 376.8 | |||||||||||||||||||||||
Leasing – Recourse: | ||||||||||||||||||||||||
Capital lease obligations | 41.4 | 42.2 | ||||||||||||||||||||||
Total recourse debt | 421.7 | 419 | ||||||||||||||||||||||
Leasing – Non-recourse: | ||||||||||||||||||||||||
Wholly-owned subsidiaries: | ||||||||||||||||||||||||
2006 secured railcar equipment notes | 236.8 | 240.7 | ||||||||||||||||||||||
Promissory notes | 389.1 | 396.1 | ||||||||||||||||||||||
2009 secured railcar equipment notes | 196.6 | 199 | ||||||||||||||||||||||
2010 secured railcar equipment notes | 323.5 | 326.9 | ||||||||||||||||||||||
TILC warehouse facility | 133.2 | 152 | ||||||||||||||||||||||
1,279.20 | 1,314.70 | |||||||||||||||||||||||
Partially-owned subsidiaries: | ||||||||||||||||||||||||
TRL 2012 secured railcar equipment notes - RIV 2013 | 493 | 499.3 | ||||||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | 746.3 | 756.8 | ||||||||||||||||||||||
1,239.30 | 1,256.10 | |||||||||||||||||||||||
Total non–recourse debt | 2,518.50 | 2,570.80 | ||||||||||||||||||||||
Total debt | $ | 2,940.20 | $ | 2,989.80 | ||||||||||||||||||||
Total interest expense recognized on the Convertible Subordinated Notes | ' | |||||||||||||||||||||||
Total interest expense recognized on the Convertible Subordinated Notes for the three months ended March 31, 2014 and 2013 is as follows: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Coupon rate interest | $ | 4.4 | $ | 4.4 | ||||||||||||||||||||
Amortized debt discount | 3.5 | 3.3 | ||||||||||||||||||||||
$ | 7.9 | $ | 7.7 | |||||||||||||||||||||
Remaining principal payments under existing debt agreements | ' | |||||||||||||||||||||||
The remaining principal payments under existing debt agreements as of March 31, 2014 are as follows: | ||||||||||||||||||||||||
Remaining nine months of 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Recourse: | ||||||||||||||||||||||||
Corporate | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.3 | $ | — | $ | 450 | ||||||||||||
Leasing – capital lease obligations (Note 6) | 2.3 | 3.3 | 3.5 | 3.7 | 28.6 | — | ||||||||||||||||||
Non-recourse – leasing (Note 6): | ||||||||||||||||||||||||
2006 secured railcar equipment notes | 13 | 18.6 | 21.9 | 24 | 25.4 | 133.9 | ||||||||||||||||||
Promissory notes | 17 | 21.7 | 350.4 | — | — | — | ||||||||||||||||||
2009 secured railcar equipment notes | 7.5 | 9.6 | 6.5 | 6.3 | 6.5 | 160.2 | ||||||||||||||||||
2010 secured railcar equipment notes | 10.6 | 15.3 | 15 | 13.7 | 10 | 258.9 | ||||||||||||||||||
TILC warehouse facility | 3.5 | 4.3 | 3.9 | — | — | — | ||||||||||||||||||
TRL 2012 secured railcar equipment notes - | 18.7 | 23.5 | 22.6 | 23.1 | 23.4 | 381.7 | ||||||||||||||||||
RIV 2013 | ||||||||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | 29.6 | 35.7 | 29.3 | 20.4 | 19.9 | 611.4 | ||||||||||||||||||
Facility termination payments - TILC warehouse facility | — | 40.5 | 81 | — | — | — | ||||||||||||||||||
Total principal payments | $ | 102.4 | $ | 172.7 | $ | 534.3 | $ | 91.5 | $ | 113.8 | $ | 1,996.10 | ||||||||||||
Other_Net_Tables
Other, Net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Other Income and Expenses [Abstract] | ' | |||||||
Other, net (income) expense | ' | |||||||
Other, net (income) expense consists of the following items: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Foreign currency exchange transactions | $ | 0.4 | $ | (0.3 | ) | |||
Gain on equity investments | (0.2 | ) | (0.1 | ) | ||||
Other | (0.6 | ) | (2.3 | ) | ||||
Other, net | $ | (0.4 | ) | $ | (2.7 | ) |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Reconciliation between the statutory United States Federal income tax rate and the Company's effective income tax rate from continuing operations | ' | |||||||
The following is a reconciliation between the statutory U.S. Federal income tax rate and the Company’s effective income tax rate on income from continuing operations: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Statutory rate | 35 | % | 35 | % | ||||
State taxes | 0.9 | 2 | ||||||
Domestic production activities deduction | (2.2 | ) | (0.4 | ) | ||||
Noncontrolling interest in partially-owned subsidiaries | (1.2 | ) | — | |||||
Other, net | — | (0.3 | ) | |||||
Effective rate | 32.5 | % | 36.3 | % | ||||
Change in unrecognized tax benefits | ' | |||||||
The change in unrecognized tax benefits for the three months ended March 31, 2014 and 2013 was as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Beginning balance | $ | 55 | $ | 48.7 | ||||
Additions for tax positions related to the current year | 1.2 | 1.1 | ||||||
Reductions for tax positions of prior years | (0.1 | ) | — | |||||
Ending balance | $ | 56.1 | $ | 49.8 | ||||
Employee_Retirement_Plans_Tabl
Employee Retirement Plans (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||
Components of net retirement cost | ' | |||||||
The following table summarizes the components of net retirement cost for the Company: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Expense Components | ||||||||
Service cost | $ | 0.1 | $ | 0.3 | ||||
Interest | 5 | 4.7 | ||||||
Expected return on plan assets | (7.7 | ) | (6.6 | ) | ||||
Amortization of actuarial loss | 0.3 | 1.2 | ||||||
Defined benefit expense | (2.3 | ) | (0.4 | ) | ||||
Profit sharing | 3.7 | 3.1 | ||||||
Net expense | $ | 1.4 | $ | 2.7 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||
Changes in accumulated other comprehensive loss | ' | |||||||||||||||
Changes in accumulated other comprehensive loss for the three months ended March 31, 2014 are as follows, net of tax: | ||||||||||||||||
Currency translation adjustments | Unrealized loss on derivative financial instruments | Net actuarial gains/(losses) of defined benefit plans | Accumulated | |||||||||||||
Other | ||||||||||||||||
Comprehensive | ||||||||||||||||
Loss | ||||||||||||||||
(in millions) | ||||||||||||||||
Balances at December 31, 2013 | $ | (16.5 | ) | $ | (18.7 | ) | $ | (43.0 | ) | $ | (78.2 | ) | ||||
Other comprehensive loss, net of tax, before reclassifications | — | (1.2 | ) | — | (1.2 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $2.0, $0.1, and $2.1 | — | 4.3 | 0.2 | 4.5 | ||||||||||||
Less: noncontrolling interest | — | (0.7 | ) | — | (0.7 | ) | ||||||||||
Other comprehensive income | — | 2.4 | 0.2 | 2.6 | ||||||||||||
Balances at March 31, 2014 | $ | (16.5 | ) | $ | (16.3 | ) | $ | (42.8 | ) | $ | (75.6 | ) |
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||||||||
Computation of basic and diluted net income attributable to Trinity Industries, Inc. | ' | |||||||||||||||||||||
The computation of basic and diluted net income attributable to Trinity Industries, Inc. follows. | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
31-Mar-14 | 31-Mar-13 | |||||||||||||||||||||
Income | Average | EPS | Income | Average | EPS | |||||||||||||||||
(Loss) | Shares | (Loss) | Shares | |||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||
Net income from continuing operations | $ | 233.3 | $ | 72.2 | ||||||||||||||||||
Less: net income (loss) from continuing operations attributable to noncontrolling interest | 6.6 | (0.3 | ) | |||||||||||||||||||
Net income from continuing operations attributable to Trinity Industries, Inc. | 226.7 | 72.5 | ||||||||||||||||||||
Unvested restricted share participation | (7.8 | ) | (2.3 | ) | ||||||||||||||||||
Net income from continuing operations attributable to Trinity Industries, Inc. – basic | 218.9 | 75.1 | $ | 2.91 | 70.2 | 76.9 | $ | 0.91 | ||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||
Stock options | — | — | — | 0.1 | ||||||||||||||||||
Convertible subordinated notes | 0.2 | 1.9 | — | — | ||||||||||||||||||
Net income from continuing operations attributable to Trinity Industries, Inc. – diluted | $ | 219.1 | 77 | $ | 2.85 | $ | 70.2 | 77 | $ | 0.91 | ||||||||||||
Net income (loss) from discontinued operations, net of taxes | $ | (0.3 | ) | $ | 6.6 | |||||||||||||||||
Unvested restricted share participation | — | (0.2 | ) | |||||||||||||||||||
Net income (loss) from discontinued operations, net of taxes – basic | (0.3 | ) | 75.1 | $ | — | 6.4 | 76.9 | $ | 0.08 | |||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||
Stock options | — | — | — | 0.1 | ||||||||||||||||||
Convertible subordinated notes | — | 1.9 | — | — | ||||||||||||||||||
Net income (loss) from discontinued operations, net of taxes – diluted | $ | (0.3 | ) | 77 | $ | — | $ | 6.4 | 77 | $ | 0.08 | |||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | |
Current repurchase program | Current repurchase program | Prior repurchase program | Prior repurchase program | ||
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' |
Authorized amount from board of directors for share repurchase | ' | $250,000,000 | ' | $200,000,000 | ' |
Share repurchase program effective date | ' | 7-Mar-14 | ' | ' | ' |
Share repurchase program expiry date | ' | 31-Dec-15 | ' | ' | ' |
Shares repurchased under the program | ' | ' | 138,273 | ' | 0 |
Cost of shares repurchased | 10,000,000 | ' | 10,000,000 | ' | ' |
Shares repurchased settled in subsequent month | ' | $2,500,000 | ' | ' | ' |
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Acquisitions: | ' | ' |
Purchase price | $117.60 | $53.80 |
Net cash paid | 112.6 | 9.1 |
Goodwill recorded | 82.1 | 2.5 |
Divestitures: | ' | ' |
Proceeds | 0 | 35.6 |
Gain recognized | 0 | 12.4 |
Goodwill charged off | $0 | $4.80 |
Energy Equipment Group | ' | ' |
Divestitures: | ' | ' |
Number of businesses acquired | 3 | ' |
Acquisitions_and_Divestitures_2
Acquisitions and Divestitures (Details 1) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' |
Income tax benefit | ($0.20) | ($0.30) |
Net loss from discontinued operations | -0.3 | -0.4 |
Ready-Mix Concrete Operations | ' | ' |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' |
Revenues | 0 | 31.6 |
Loss from discontinued operations before income taxes | -0.5 | -0.7 |
Income tax benefit | -0.2 | -0.3 |
Net loss from discontinued operations | ($0.30) | ($0.40) |
Fair_Value_Accounting_Details
Fair Value Accounting (Details) (Fair value measurements, recurring, USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Cash equivalents | $159.70 | $230.60 | ||
Restricted cash | 231.4 | 260.7 | ||
Total assets | 391.1 | 491.3 | ||
Liabilities: | ' | ' | ||
Total liabilities | 0 | 0 | ||
Level 1 | Wholly-owned subsidiaries | Interest rate hedges | ' | ' | ||
Liabilities: | ' | ' | ||
Interest rate hedges | 0 | [1] | 0 | [1] |
Level 1 | Partially-owned subsidiaries | Interest rate hedges | ' | ' | ||
Liabilities: | ' | ' | ||
Interest rate hedges | 0 | [1] | 0 | [1] |
Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Total assets | 0 | 0 | ||
Liabilities: | ' | ' | ||
Total liabilities | 20.1 | 23.8 | ||
Level 2 | Wholly-owned subsidiaries | Interest rate hedges | ' | ' | ||
Liabilities: | ' | ' | ||
Interest rate hedges | 18 | [1] | 21.7 | [1] |
Level 2 | Partially-owned subsidiaries | Interest rate hedges | ' | ' | ||
Liabilities: | ' | ' | ||
Interest rate hedges | 2.1 | [1] | 2.1 | [1] |
Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Total assets | 0 | 0 | ||
Liabilities: | ' | ' | ||
Total liabilities | 0 | 0 | ||
Level 3 | Wholly-owned subsidiaries | Interest rate hedges | ' | ' | ||
Liabilities: | ' | ' | ||
Interest rate hedges | 0 | [1] | 0 | [1] |
Level 3 | Partially-owned subsidiaries | Interest rate hedges | ' | ' | ||
Liabilities: | ' | ' | ||
Interest rate hedges | 0 | [1] | 0 | [1] |
Total | ' | ' | ||
Assets: | ' | ' | ||
Cash equivalents | 159.7 | 230.6 | ||
Restricted cash | 231.4 | 260.7 | ||
Total assets | 391.1 | 491.3 | ||
Liabilities: | ' | ' | ||
Total liabilities | 20.1 | 23.8 | ||
Total | Wholly-owned subsidiaries | Interest rate hedges | ' | ' | ||
Liabilities: | ' | ' | ||
Interest rate hedges | 18 | [1] | 21.7 | [1] |
Total | Partially-owned subsidiaries | Interest rate hedges | ' | ' | ||
Liabilities: | ' | ' | ||
Interest rate hedges | $2.10 | [1] | $2.10 | [1] |
[1] | Included in accrued liabilities on the consolidated balance sheet. |
Fair_Value_Accounting_Details_
Fair Value Accounting (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Less: unamortized discount | ($70.60) | [1] | ($74.10) |
Notes payable | 1,279.20 | [1] | 1,314.70 |
Total debt | 2,940.20 | [1] | 2,989.80 |
Wholly-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Total debt | 1,320.60 | 1,356.90 | |
Partially-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Total debt | 1,239.30 | 1,256.10 | |
Recourse | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Less: unamortized discount | -70.6 | -74.1 | |
Total debt | 421.7 | 419 | |
Recourse | Wholly-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Less: unamortized discount | 0 | 0 | |
Total debt | 41.4 | 42.2 | |
Recourse | Partially-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Less: unamortized discount | 0 | 0 | |
Total debt | 0 | 0 | |
Carrying Value | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Total debt | 2,940.20 | 2,989.80 | |
Carrying Value | Recourse | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Total debt | 421.7 | 419 | |
Carrying Value | Recourse | Corporate | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Convertible subordinated notes | 450 | 450 | |
Less: unamortized discount | -70.6 | -74.1 | |
Convertible subordinated notes, net | 379.4 | 375.9 | |
Other | 0.9 | 0.9 | |
Total debt | 380.3 | 376.8 | |
Carrying Value | Recourse | Capital lease obligations | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Capital lease obligations | 41.4 | 42.2 | |
Carrying Value | Non-recourse | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Total debt | 2,518.50 | 2,570.80 | |
Carrying Value | Non-recourse | Wholly-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Total debt | 1,279.20 | 1,314.70 | |
Carrying Value | Non-recourse | Partially-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Notes payable | 1,239.30 | 1,256.10 | |
Carrying Value | Non-recourse | 2006 secured railcar equipment notes | Wholly-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Notes payable | 236.8 | 240.7 | |
Carrying Value | Non-recourse | Promissory notes | Wholly-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Notes payable | 389.1 | 396.1 | |
Carrying Value | Non-recourse | 2009 secured railcar equipment notes | Wholly-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Notes payable | 196.6 | 199 | |
Carrying Value | Non-recourse | 2010 secured railcar equipment notes | Wholly-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Notes payable | 323.5 | 326.9 | |
Carrying Value | Non-recourse | TILC warehouse facility | Wholly-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Loans payable | 133.2 | 152 | |
Carrying Value | Non-recourse | TRL 2012 secured railcar equipment notes - RIV 2013 | Partially-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Notes payable | 493 | 499.3 | |
Carrying Value | Non-recourse | TRIP Master Funding secured railcar equipment notes | Partially-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Notes payable | 746.3 | 756.8 | |
Estimated Fair Value | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Total debt | 3,389.40 | 3,312.70 | |
Estimated Fair Value | Recourse | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Total debt | 749.3 | 636.5 | |
Estimated Fair Value | Recourse | Corporate | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Convertible subordinated notes | 707 | 593.4 | |
Other | 0.9 | 0.9 | |
Estimated Fair Value | Recourse | Capital lease obligations | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Capital lease obligations | 41.4 | 42.2 | |
Estimated Fair Value | Non-recourse | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Total debt | 2,640.10 | 2,676.20 | |
Estimated Fair Value | Non-recourse | 2006 secured railcar equipment notes | Wholly-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Notes payable | 257.3 | 259.2 | |
Estimated Fair Value | Non-recourse | Promissory notes | Wholly-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Notes payable | 383.3 | 389.6 | |
Estimated Fair Value | Non-recourse | 2009 secured railcar equipment notes | Wholly-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Notes payable | 230.3 | 229.5 | |
Estimated Fair Value | Non-recourse | 2010 secured railcar equipment notes | Wholly-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Notes payable | 345.4 | 342.7 | |
Estimated Fair Value | Non-recourse | TILC warehouse facility | Wholly-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Loans payable | 133.2 | 152 | |
Estimated Fair Value | Non-recourse | TRL 2012 secured railcar equipment notes - RIV 2013 | Partially-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Notes payable | 479.2 | 483.4 | |
Estimated Fair Value | Non-recourse | TRIP Master Funding secured railcar equipment notes | Partially-owned subsidiaries | Railcar Leasing and Management Services Group | ' | ' | |
Carrying amounts and estimated fair values of long-term debt | ' | ' | |
Notes payable | $811.40 | $819.80 | |
[1] | (unaudited) |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | $1,460.50 | $932.90 |
Operating Profit (Loss) | 391.3 | 159.5 |
Rail Group | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 601.1 | 423.6 |
Operating Profit (Loss) | 167.5 | 102.9 |
Construction Products Group | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 112.2 | 98 |
Operating Profit (Loss) | 21.7 | 7.7 |
Inland Barge Group | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 136.9 | 147.4 |
Operating Profit (Loss) | 26.7 | 24.3 |
Energy Equipment Group | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 167 | 128.5 |
Operating Profit (Loss) | 22.9 | 14.9 |
Railcar Leasing and Management Services Group | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 442.2 | 134.4 |
Operating Profit (Loss) | 230.3 | 61.6 |
All Other | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 1.1 | 1 |
Operating Profit (Loss) | -5.4 | -2.6 |
Segment Totals before Eliminations and Corporate Expenses | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 1,460.50 | 932.9 |
Operating Profit (Loss) | 463.7 | 208.8 |
Corporate | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 0 | 0 |
Operating Profit (Loss) | -23.1 | -16.6 |
Eliminations – Lease subsidiary | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 0 | 0 |
Operating Profit (Loss) | -49.3 | -32.4 |
Eliminations – Other | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 0 | 0 |
Operating Profit (Loss) | 0 | -0.3 |
Total | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 1,460.50 | 932.9 |
Total | Rail Group | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 857.4 | 625.5 |
Total | Construction Products Group | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 113.1 | 103.8 |
Total | Inland Barge Group | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 136.9 | 147.4 |
Total | Energy Equipment Group | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 210.6 | 154.7 |
Total | Railcar Leasing and Management Services Group | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 443.1 | 134.4 |
Operating Profit (Loss) | 230.3 | 61.6 |
Total | All Other | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 23.2 | 19.3 |
Total | Segment Totals before Eliminations and Corporate Expenses | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 1,784.30 | 1,185.10 |
Total | Corporate | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 0 | 0 |
Total | Eliminations – Lease subsidiary | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | -249.1 | -198 |
Total | Eliminations – Other | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | -74.7 | -54.2 |
Intersegment | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 0 | 0 |
Intersegment | Rail Group | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 256.3 | 201.9 |
Intersegment | Construction Products Group | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 0.9 | 5.8 |
Intersegment | Inland Barge Group | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 0 | 0 |
Intersegment | Energy Equipment Group | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 43.6 | 26.2 |
Intersegment | Railcar Leasing and Management Services Group | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 0.9 | 0 |
Intersegment | All Other | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 22.1 | 18.3 |
Intersegment | Segment Totals before Eliminations and Corporate Expenses | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 323.8 | 252.2 |
Intersegment | Corporate | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | 0 | 0 |
Intersegment | Eliminations – Lease subsidiary | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | -249.1 | -198 |
Intersegment | Eliminations – Other | ' | ' |
Financial Information from continuing operations for segments | ' | ' |
Total revenues | ($74.70) | ($54.20) |
Segment_Information_Details_Te
Segment Information (Details Textual) | 3 Months Ended |
Mar. 31, 2014 | |
segments | |
Segment Information (Textual) [Abstract] | ' |
Number of principal business segments of Company | 5 |
PartiallyOwned_Leasing_Subsidi1
Partially-Owned Leasing Subsidiaries (Details Textual) (Leasing Group, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
subsidiaries | |
board_members | |
Partially-owned subsidiaries | ' |
Schedule of Investments [Line Items] | ' |
Number of subsidiaries | 2 |
Number of board members | 7 |
Number of TILC designated board members | 2 |
Trinity guarantees of subsidiary-related activities | $0 |
TRIP Leasing | ' |
Schedule of Investments [Line Items] | ' |
Number of railcars owned | 0 |
RIV 2013 | ' |
Schedule of Investments [Line Items] | ' |
Date through which equity funding is committed | 'May 2016 |
Remaining equity commitment outstanding | 27.9 |
Remaining equity commitment outstanding from third parties | 63.4 |
Date through which equity is committed, extended date | 'May 2019 |
Carrying value of investment in partially-owned subsidiary | 44.9 |
Ownership percentage in partially-owned subsidiary | 31.00% |
TRIP Holdings | ' |
Schedule of Investments [Line Items] | ' |
Carrying value of investment in partially-owned subsidiary | $161.30 |
Ownership percentage in partially-owned subsidiary | 45.00% |
Railcar_Leasing_and_Management2
Railcar Leasing and Management Services Group (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Consolidating Financial Information | ' | ' | |
Cash, cash equivalents, and short-term marketable securities | $788.60 | $578.20 | |
Property, plant, and equipment, net | 5,143.80 | 5,320.30 | |
Net deferred profit on railcars sold to the Leasing Group | -523.2 | -549.7 | |
Property, plant, and equipment, net | 4,620.60 | [1] | 4,770.60 |
Restricted cash | 231.4 | [1] | 260.7 |
Debt: | ' | ' | |
Less: unamortized discount | -70.6 | [1] | -74.1 |
Total debt | 2,940.20 | [1] | 2,989.80 |
Net deferred tax liabilities | 642.9 | 639.4 | |
Recourse | ' | ' | |
Debt: | ' | ' | |
Recourse | 492.3 | 493.1 | |
Less: unamortized discount | -70.6 | -74.1 | |
Total debt | 421.7 | 419 | |
Non-recourse | ' | ' | |
Debt: | ' | ' | |
Non-recourse | 2,518.50 | 2,570.80 | |
Partially-owned subsidiaries | ' | ' | |
Consolidating Financial Information | ' | ' | |
Restricted cash | 76.7 | [1] | 77.1 |
Leasing Group | ' | ' | |
Consolidating Financial Information | ' | ' | |
Net deferred profit on railcars sold to the Leasing Group | -523.2 | -549.7 | |
Leasing Group | Wholly-owned subsidiaries | ' | ' | |
Consolidating Financial Information | ' | ' | |
Cash, cash equivalents, and short-term marketable securities | 2 | 3.5 | |
Property, plant, and equipment, net | 2,769.60 | 2,964.60 | |
Restricted cash | 154.7 | 183.6 | |
Debt: | ' | ' | |
Total debt | 1,320.60 | 1,356.90 | |
Net deferred tax liabilities | 646.3 | 671.9 | |
Leasing Group | Wholly-owned subsidiaries | Recourse | ' | ' | |
Debt: | ' | ' | |
Recourse | 41.4 | 42.2 | |
Less: unamortized discount | 0 | 0 | |
Total debt | 41.4 | 42.2 | |
Leasing Group | Wholly-owned subsidiaries | Non-recourse | ' | ' | |
Debt: | ' | ' | |
Non-recourse | 1,279.20 | 1,314.70 | |
Leasing Group | Partially-owned subsidiaries | ' | ' | |
Consolidating Financial Information | ' | ' | |
Cash, cash equivalents, and short-term marketable securities | 0 | 0 | |
Property, plant, and equipment, net | 1,673.80 | 1,685.10 | |
Restricted cash | 76.7 | 77.1 | |
Debt: | ' | ' | |
Total debt | 1,239.30 | 1,256.10 | |
Net deferred tax liabilities | 0 | 0 | |
Leasing Group | Partially-owned subsidiaries | Recourse | ' | ' | |
Debt: | ' | ' | |
Recourse | 0 | 0 | |
Less: unamortized discount | 0 | 0 | |
Total debt | 0 | 0 | |
Leasing Group | Partially-owned subsidiaries | Non-recourse | ' | ' | |
Debt: | ' | ' | |
Non-recourse | 1,239.30 | 1,256.10 | |
Manufacturing/Corporate | ' | ' | |
Consolidating Financial Information | ' | ' | |
Cash, cash equivalents, and short-term marketable securities | 786.6 | 574.7 | |
Property, plant, and equipment, net | 700.4 | 670.6 | |
Restricted cash | 0 | 0 | |
Debt: | ' | ' | |
Total debt | 380.3 | 376.8 | |
Net deferred tax liabilities | -3.4 | -32.5 | |
Manufacturing/Corporate | Recourse | ' | ' | |
Debt: | ' | ' | |
Recourse | 450.9 | 450.9 | |
Less: unamortized discount | -70.6 | -74.1 | |
Total debt | 380.3 | 376.8 | |
Manufacturing/Corporate | Non-recourse | ' | ' | |
Debt: | ' | ' | |
Non-recourse | $0 | $0 | |
[1] | (unaudited) |
Railcar_Leasing_and_Management3
Railcar Leasing and Management Services Group (Details 1) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Revenues: | ' | ' | ||
Total revenues | $1,460.50 | $932.90 | ||
Operating profit: | ' | ' | ||
Total operating profit | 391.3 | 159.5 | ||
Selected expense information: | ' | ' | ||
Depreciation | 55.3 | 50 | ||
Interest: | ' | ' | ||
Interest expense | 46.3 | 49.2 | ||
Railcar Leasing and Management Services Group | ' | ' | ||
Revenues: | ' | ' | ||
Total revenues | 442.2 | 134.4 | ||
Operating profit: | ' | ' | ||
Total operating profit | 230.3 | 61.6 | ||
Operating profit margin: | ' | ' | ||
Total operating profit margin | 52.00% | 45.80% | ||
Selected expense information: | ' | ' | ||
Depreciation | 32.5 | [1] | 31 | [1] |
Percent Change, Depreciation | 4.80% | [1] | ' | |
Maintenance | 21 | [1] | 19 | [1] |
Percent Change, Maintenance | 10.50% | [1] | ' | |
Rent | 13.3 | [1] | 13.4 | [1] |
Percent Change, Rent | -0.70% | [1] | ' | |
Interest: | ' | ' | ||
Interest expense | 37.3 | [1] | 40.9 | [1] |
Railcar Leasing and Management Services Group | Leasing and management | ' | ' | ||
Revenues: | ' | ' | ||
Total revenues | 150.2 | 134.3 | ||
Percent Change | 11.80% | ' | ||
Operating profit: | ' | ' | ||
Total operating profit | 63.9 | 54.8 | ||
Percentage Change | 16.60% | ' | ||
Operating profit margin: | ' | ' | ||
Total operating profit margin | 42.50% | 40.80% | ||
Railcar Leasing and Management Services Group | Railcars owned one year or less at the time of sale | ' | ' | ||
Revenues: | ' | ' | ||
Total revenues | 292.9 | 0.1 | ||
Operating profit: | ' | ' | ||
Total operating profit | 88.9 | 0 | ||
Railcar Leasing and Management Services Group | Railcars owned more than one year at the time of sale | ' | ' | ||
Operating profit: | ' | ' | ||
Total operating profit | 77.5 | 6.8 | ||
Rail Group | ' | ' | ||
Revenues: | ' | ' | ||
Total revenues | 601.1 | 423.6 | ||
Operating profit: | ' | ' | ||
Total operating profit | 167.5 | 102.9 | ||
Intercompany | ' | ' | ||
Revenues: | ' | ' | ||
Total revenues | 0 | 0 | ||
Intercompany | Railcar Leasing and Management Services Group | ' | ' | ||
Revenues: | ' | ' | ||
Total revenues | 0.9 | 0 | ||
Interest: | ' | ' | ||
Interest expense | 0 | [1] | 2.7 | [1] |
Intercompany | Rail Group | ' | ' | ||
Revenues: | ' | ' | ||
Total revenues | 256.3 | 201.9 | ||
Total | ' | ' | ||
Revenues: | ' | ' | ||
Total revenues | 1,460.50 | 932.9 | ||
Total | Railcar Leasing and Management Services Group | ' | ' | ||
Revenues: | ' | ' | ||
Total revenues | 443.1 | 134.4 | ||
Percent Change | 229.70% | ' | ||
Operating profit: | ' | ' | ||
Total operating profit | 230.3 | 61.6 | ||
Percentage Change | 273.90% | ' | ||
Interest: | ' | ' | ||
Interest expense | 37.3 | [1] | 43.6 | [1] |
Percent Change, Total interest expense | -14.40% | [1] | ' | |
Total | Rail Group | ' | ' | ||
Revenues: | ' | ' | ||
Total revenues | $857.40 | $625.50 | ||
[1] | Depreciation, maintenance, and rent expense are components of operating profit. Amortization of deferred profit on railcars sold from the Rail Group to the Leasing Group is included in the operating profits of the Leasing Group resulting in the recognition of depreciation expense based on the Company's original manufacturing cost of the railcars. Interest expense is not a component of operating profit and includes the effect of hedges. Intercompany interest expense arises from Trinity’s previous ownership of a portion of TRIP Holdings’ Senior Secured Notes and is eliminated in consolidation. See Note 11 Debt. |
Railcar_Leasing_and_Management4
Railcar Leasing and Management Services Group (Details 2) (Railcar Leasing and Management Services Group, USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Railcar Leasing and Management Services Group | ' |
Future contractual minimum rental revenues on leases | ' |
Remaining nine months of 2014 | $318.80 |
2015 | 364 |
2016 | 304 |
2017 | 242.4 |
2018 | 177.5 |
Thereafter | 280.5 |
Total | $1,687.20 |
Railcar_Leasing_and_Management5
Railcar Leasing and Management Services Group (Details 3) (Railcar Leasing and Management Services Group, USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Future contractual minimum rental revenues on leases | ' |
Remaining nine months of 2014 | $318.80 |
2015 | 364 |
2016 | 304 |
2017 | 242.4 |
2018 | 177.5 |
Thereafter | 280.5 |
Total | 1,687.20 |
Operating leases with the Trusts | ' |
Future contractual minimum rental obligations on leases | ' |
Remaining nine months of 2014 | 33.6 |
2015 | 43 |
2016 | 40.1 |
2017 | 41.9 |
2018 | 45.3 |
Thereafter | 253.6 |
Total | 457.5 |
Future contractual minimum rental revenues on leases | ' |
Remaining nine months of 2014 | 49.6 |
2015 | 55.8 |
2016 | 45.4 |
2017 | 34.9 |
2018 | 24.4 |
Thereafter | 43.7 |
Total | $253.80 |
Railcar_Leasing_and_Management6
Railcar Leasing and Management Services Group (Details 4) (Railcar Leasing and Management Services Group, USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Future contractual minimum rental revenues on leases | ' |
Remaining nine months of 2014 | $318.80 |
2015 | 364 |
2016 | 304 |
2017 | 242.4 |
2018 | 177.5 |
Thereafter | 280.5 |
Total | 1,687.20 |
Operating leases other than leases with the Trusts | ' |
Future contractual minimum rental obligations on leases | ' |
Remaining nine months of 2014 | 9.6 |
2015 | 12.8 |
2016 | 12.7 |
2017 | 12.1 |
2018 | 12 |
Thereafter | 38.2 |
Total | 97.4 |
Future contractual minimum rental revenues on leases | ' |
Remaining nine months of 2014 | 14.5 |
2015 | 13.8 |
2016 | 12.7 |
2017 | 9.5 |
2018 | 5.7 |
Thereafter | 8.8 |
Total | $65 |
Railcar_Leasing_and_Management7
Railcar Leasing and Management Services Group (Details Textual) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Railcar Leasing and Management Services Group (Textual) [Abstract] | ' | ' | ' | |
Revenue | $1,460.50 | $932.90 | ' | |
Proceeds from railcar lease fleet sales owned more than one year at the time of sale | 224.3 | 30.6 | ' | |
Assets | 7,580.20 | [1] | ' | 7,313.40 |
Rail Group | ' | ' | ' | |
Railcar Leasing and Management Services Group (Textual) [Abstract] | ' | ' | ' | |
Revenue | 601.1 | 423.6 | ' | |
Railcar Leasing and Management Services Group | ' | ' | ' | |
Railcar Leasing and Management Services Group (Textual) [Abstract] | ' | ' | ' | |
Revenue | 442.2 | 134.4 | ' | |
Operating lease obligations guaranteed by Trinity Industries, Inc. and certain subsidiaries | 20.8 | ' | ' | |
Railcar Leasing and Management Services Group | Wholly-owned subsidiaries | ' | ' | ' | |
Railcar Leasing and Management Services Group (Textual) [Abstract] | ' | ' | ' | |
Net book value of equipment pledged as collateral for leasing group debt | 1,909.10 | ' | ' | |
Net book value of equipment securing capital lease obligations | 46.9 | ' | ' | |
Net book value of unpledged equipment | 774.3 | ' | ' | |
Railcar Leasing and Management Services Group | TRIP Holdings | ' | ' | ' | |
Railcar Leasing and Management Services Group (Textual) [Abstract] | ' | ' | ' | |
Net book value of equipment pledged as collateral for leasing group debt | 1,058.70 | ' | ' | |
Railcar Leasing and Management Services Group | TRL 2012 | ' | ' | ' | |
Railcar Leasing and Management Services Group (Textual) [Abstract] | ' | ' | ' | |
Net book value of equipment pledged as collateral for leasing group debt | 615.1 | ' | ' | |
Railcar Leasing and Management Services Group | Wholly-owned qualified subsidiaries for leasing railcars from the Trusts | ' | ' | ' | |
Railcar Leasing and Management Services Group (Textual) [Abstract] | ' | ' | ' | |
Period of railcars leased from the Trusts under operating leases (in years) | '22 years | ' | ' | |
Assets | 204.7 | ' | ' | |
Cash | 81.4 | ' | ' | |
Railcars | 85.2 | ' | ' | |
Railcar Leasing and Management Services Group | Minimum | ' | ' | ' | |
Railcar Leasing and Management Services Group (Textual) [Abstract] | ' | ' | ' | |
Term of lease contracts with third parties (in years) | '1 year | ' | ' | |
Railcar Leasing and Management Services Group | Maximum | ' | ' | ' | |
Railcar Leasing and Management Services Group (Textual) [Abstract] | ' | ' | ' | |
Term of lease contracts with third parties (in years) | '20 years | ' | ' | |
Railcars owned one year or less at the time of sale | Railcar Leasing and Management Services Group | ' | ' | ' | |
Railcar Leasing and Management Services Group (Textual) [Abstract] | ' | ' | ' | |
Revenue | 292.9 | 0.1 | ' | |
Element | ' | ' | ' | |
Railcar Leasing and Management Services Group (Textual) [Abstract] | ' | ' | ' | |
Proceeds from the sale of leased railcars | 514.3 | ' | ' | |
Proceeds from railcar lease fleet sales owned more than one year at the time of sale | 222.7 | ' | ' | |
Element | Rail Group | ' | ' | ' | |
Railcar Leasing and Management Services Group (Textual) [Abstract] | ' | ' | ' | |
Revenue | 13.7 | ' | ' | |
Element | Railcars owned one year or less at the time of sale | Railcar Leasing and Management Services Group | ' | ' | ' | |
Railcar Leasing and Management Services Group (Textual) [Abstract] | ' | ' | ' | |
Revenue | $277.90 | ' | ' | |
[1] | (unaudited) |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jul. 31, 2011 | |||||
In Millions, unless otherwise specified | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | |||||||
Expired hedges | Expired hedges | Expired hedges | Open hedges | Open hedges | Open hedges | ||||||||
2006 secured railcar equipment notes | Promissory notes | TRIP Holdings warehouse loan | Promissory notes | TRIP Master Funding secured railcar equipment notes | TRIP Master Funding secured railcar equipment notes | ||||||||
Interest rate hedges included in balance sheet | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Notional Amount | ' | ' | $200 | $370 | $788.50 | $408.30 | $64.40 | $94.10 | |||||
Interest Rate | ' | ' | 4.87% | [1] | 5.34% | [1] | 3.60% | [1] | 4.13% | [1] | 2.62% | [1] | ' |
Liability | ' | ' | 0 | 0 | 0 | 18 | 2.1 | ' | |||||
AOCL – loss/ (income) | 16.3 | 18.7 | -1.5 | 3.3 | 12.3 | 16.5 | 0.9 | ' | |||||
Noncontrolling Interest | ' | ' | $0 | $0 | $15.20 | $0 | $1.10 | ' | |||||
[1] | Weighted average fixed interest rate |
Derivative_Instruments_Details1
Derivative Instruments (Details 1) (Designated as hedging instrument, USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Expired hedges | TRIP Holdings warehouse loan | ' | ' | |
Effect on interest expense - increase/(decrease) | ' | ' | |
Expected effect during next twelve months | $5.10 | ' | |
Interest expense | Expired hedges | 2006 secured railcar equipment notes | ' | ' | |
Effect on interest expense - increase/(decrease) | ' | ' | |
Effect on interest expense | -0.1 | -0.1 | |
Expected effect during next twelve months | -0.3 | [1] | ' |
Interest expense | Expired hedges | Promissory notes | ' | ' | |
Effect on interest expense - increase/(decrease) | ' | ' | |
Effect on interest expense | 0.8 | 0.8 | |
Expected effect during next twelve months | 2.9 | [1] | ' |
Interest expense | Expired hedges | TRIP Holdings warehouse loan | ' | ' | |
Effect on interest expense - increase/(decrease) | ' | ' | |
Effect on interest expense | 1.3 | 2 | |
Expected effect during next twelve months | 5.1 | [1] | ' |
Interest expense | Open hedges | Promissory notes | ' | ' | |
Effect on interest expense - increase/(decrease) | ' | ' | |
Effect on interest expense | 3.9 | 3.9 | |
Expected effect during next twelve months | 15.5 | [1] | ' |
Interest expense | Open hedges | TRIP Master Funding secured railcar equipment notes | ' | ' | |
Effect on interest expense - increase/(decrease) | ' | ' | |
Effect on interest expense | 0.4 | 0.5 | |
Expected effect during next twelve months | $1.40 | [1] | ' |
[1] | Based on the fair value of open hedges as of March 31, 2014 |
Derivative_Instruments_Details2
Derivative Instruments (Details Textual) (Designated as hedging instrument, USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jul. 31, 2011 |
Expired hedges | Expired hedges | Expired hedges | Open hedges | Open hedges | Open hedges | |
2006 secured railcar equipment notes | Promissory notes | TRIP Holdings warehouse loan | Promissory notes | TRIP Master Funding secured railcar equipment notes | TRIP Master Funding secured railcar equipment notes | |
Derivative Instruments (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Notional amount | $200 | $370 | $788.50 | $408.30 | $64.40 | $94.10 |
Changes in fair value of cash flow hedges which is being amortized to income (loss) | 4.5 | -24.5 | ' | ' | ' | ' |
Expected effect during next twelve months | ' | ' | $5.10 | ' | ' | ' |
Property_Plant_and_Equipment_D
Property, Plant, and Equipment (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Components of property, plant, and equipment | ' | ' | |
Less accumulated depreciation | ($1,524.90) | [1] | ($1,505.20) |
Property, plant, and equipment, net before adjustment to net deferred profit | 5,143.80 | 5,320.30 | |
Net deferred profit on railcars sold to the Leasing Group | -523.2 | -549.7 | |
Property, plant, and equipment, net | 4,620.60 | [1] | 4,770.60 |
Partially-owned subsidiaries | ' | ' | |
Components of property, plant, and equipment | ' | ' | |
Less accumulated depreciation | -215.3 | [1] | -202.1 |
Manufacturing/Corporate | ' | ' | |
Components of property, plant, and equipment | ' | ' | |
Property, plant and equipment | 1,464.50 | 1,418.90 | |
Less accumulated depreciation | -764.1 | -748.3 | |
Property, plant, and equipment, net before adjustment to net deferred profit | 700.4 | 670.6 | |
Leasing Group | ' | ' | |
Components of property, plant, and equipment | ' | ' | |
Net deferred profit on railcars sold to the Leasing Group | -523.2 | -549.7 | |
Leasing Group | Wholly-owned subsidiaries | ' | ' | |
Components of property, plant, and equipment | ' | ' | |
Property, plant and equipment | 3,315.10 | 3,519.40 | |
Less accumulated depreciation | -545.5 | -554.8 | |
Property, plant, and equipment, net before adjustment to net deferred profit | 2,769.60 | 2,964.60 | |
Leasing Group | Partially-owned subsidiaries | ' | ' | |
Components of property, plant, and equipment | ' | ' | |
Property, plant, and equipment, net before adjustment to net deferred profit | 1,673.80 | 1,685.10 | |
Land | Manufacturing/Corporate | ' | ' | |
Components of property, plant, and equipment | ' | ' | |
Property, plant and equipment | 60.2 | 44.2 | |
Buildings and improvements | Manufacturing/Corporate | ' | ' | |
Components of property, plant, and equipment | ' | ' | |
Property, plant and equipment | 476.9 | 463.2 | |
Machinery and other | Manufacturing/Corporate | ' | ' | |
Components of property, plant, and equipment | ' | ' | |
Property, plant and equipment | 855.4 | 832.5 | |
Machinery and other | Leasing Group | Wholly-owned subsidiaries | ' | ' | |
Components of property, plant, and equipment | ' | ' | |
Property, plant and equipment | 10.6 | 10.3 | |
Construction in progress | Manufacturing/Corporate | ' | ' | |
Components of property, plant, and equipment | ' | ' | |
Property, plant and equipment | 72 | 79 | |
Equipment on lease | Leasing Group | Wholly-owned subsidiaries | ' | ' | |
Components of property, plant, and equipment | ' | ' | |
Property, plant and equipment | 3,304.50 | 3,509.10 | |
Equipment on lease | Leasing Group | Partially-owned subsidiaries | ' | ' | |
Components of property, plant, and equipment | ' | ' | |
Property, plant and equipment | 1,889.10 | 1,887.20 | |
Less accumulated depreciation | ($215.30) | ($202.10) | |
[1] | (unaudited) |
Goodwill_Details
Goodwill (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Goodwill by Segment | ' | ' | ||
Goodwill | $360.30 | [1] | $278.20 | [2] |
Rail Group | ' | ' | ||
Goodwill by Segment | ' | ' | ||
Goodwill | 134.6 | 134.6 | [2] | |
Construction Products Group | ' | ' | ||
Goodwill by Segment | ' | ' | ||
Goodwill | 126.9 | 126.9 | [2] | |
Energy Equipment Group | ' | ' | ||
Goodwill by Segment | ' | ' | ||
Goodwill | 97 | 14.9 | [2] | |
Railcar Leasing and Management Services Group | ' | ' | ||
Goodwill by Segment | ' | ' | ||
Goodwill | $1.80 | $1.80 | [2] | |
[1] | (unaudited) | |||
[2] | (as reported) |
Warranties_Details
Warranties (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Changes in the accruals for warranties | ' | ' |
Beginning balance | $14.70 | $12.50 |
Warranty costs incurred | -0.8 | -1.5 |
Warranty originations and revisions | 2.3 | 2.6 |
Warranty expirations | -1 | -1 |
Ending balance | $15.20 | $12.60 |
Debt_Details
Debt (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Components of debt | ' | ' | |
Less: unamortized discount | ($70.60) | [1] | ($74.10) |
Total debt | 2,940.20 | [1] | 2,989.80 |
Notes payable | 1,279.20 | [1] | 1,314.70 |
Carrying Value | ' | ' | |
Components of debt | ' | ' | |
Total debt | 2,940.20 | 2,989.80 | |
Recourse | ' | ' | |
Components of debt | ' | ' | |
Less: unamortized discount | -70.6 | -74.1 | |
Total debt | 421.7 | 419 | |
Recourse | Carrying Value | ' | ' | |
Components of debt | ' | ' | |
Total debt | 421.7 | 419 | |
Corporate | Recourse | Carrying Value | ' | ' | |
Components of debt | ' | ' | |
Revolving credit facility | 0 | 0 | |
Convertible subordinated notes | 450 | 450 | |
Less: unamortized discount | -70.6 | -74.1 | |
Convertible subordinated notes, net | 379.4 | 375.9 | |
Other | 0.9 | 0.9 | |
Total debt | 380.3 | 376.8 | |
Railcar Leasing and Management Services Group | Wholly-owned subsidiaries | ' | ' | |
Components of debt | ' | ' | |
Total debt | 1,320.60 | 1,356.90 | |
Railcar Leasing and Management Services Group | Partially-owned subsidiaries | ' | ' | |
Components of debt | ' | ' | |
Total debt | 1,239.30 | 1,256.10 | |
Railcar Leasing and Management Services Group | Recourse | Capital lease obligations | Carrying Value | ' | ' | |
Components of debt | ' | ' | |
Capital lease obligations | 41.4 | 42.2 | |
Railcar Leasing and Management Services Group | Recourse | Wholly-owned subsidiaries | ' | ' | |
Components of debt | ' | ' | |
Less: unamortized discount | 0 | 0 | |
Total debt | 41.4 | 42.2 | |
Railcar Leasing and Management Services Group | Recourse | Partially-owned subsidiaries | ' | ' | |
Components of debt | ' | ' | |
Less: unamortized discount | 0 | 0 | |
Total debt | 0 | 0 | |
Railcar Leasing and Management Services Group | Non-recourse | Carrying Value | ' | ' | |
Components of debt | ' | ' | |
Total debt | 2,518.50 | 2,570.80 | |
Railcar Leasing and Management Services Group | Non-recourse | Wholly-owned subsidiaries | Carrying Value | ' | ' | |
Components of debt | ' | ' | |
Total debt | 1,279.20 | 1,314.70 | |
Railcar Leasing and Management Services Group | Non-recourse | Wholly-owned subsidiaries | 2006 secured railcar equipment notes | Carrying Value | ' | ' | |
Components of debt | ' | ' | |
Notes payable | 236.8 | 240.7 | |
Railcar Leasing and Management Services Group | Non-recourse | Wholly-owned subsidiaries | Promissory notes | Carrying Value | ' | ' | |
Components of debt | ' | ' | |
Notes payable | 389.1 | 396.1 | |
Railcar Leasing and Management Services Group | Non-recourse | Wholly-owned subsidiaries | 2009 secured railcar equipment notes | Carrying Value | ' | ' | |
Components of debt | ' | ' | |
Notes payable | 196.6 | 199 | |
Railcar Leasing and Management Services Group | Non-recourse | Wholly-owned subsidiaries | 2010 secured railcar equipment notes | Carrying Value | ' | ' | |
Components of debt | ' | ' | |
Notes payable | 323.5 | 326.9 | |
Railcar Leasing and Management Services Group | Non-recourse | Wholly-owned subsidiaries | TILC warehouse facility | Carrying Value | ' | ' | |
Components of debt | ' | ' | |
Loans payable | 133.2 | 152 | |
Railcar Leasing and Management Services Group | Non-recourse | Partially-owned subsidiaries | Carrying Value | ' | ' | |
Components of debt | ' | ' | |
Notes payable | 1,239.30 | 1,256.10 | |
Railcar Leasing and Management Services Group | Non-recourse | Partially-owned subsidiaries | TRL 2012 secured railcar equipment notes - RIV 2013 | Carrying Value | ' | ' | |
Components of debt | ' | ' | |
Notes payable | 493 | 499.3 | |
Railcar Leasing and Management Services Group | Non-recourse | Partially-owned subsidiaries | TRIP Master Funding secured railcar equipment notes | Carrying Value | ' | ' | |
Components of debt | ' | ' | |
Notes payable | $746.30 | $756.80 | |
[1] | (unaudited) |
Debt_Details_1
Debt (Details 1) (Recourse, Convertible Subordinated Notes, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Recourse | Convertible Subordinated Notes | ' | ' |
Total interest expense recognized on the Convertible Subordinated Notes | ' | ' |
Coupon rate interest | $4.40 | $4.40 |
Amortized debt discount | 3.5 | 3.3 |
Total interest expense recognized on the Convertible Subordinated Notes | $7.90 | $7.70 |
Debt_Details_2
Debt (Details 2) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Remaining principal payments under existing debt agreements | ' |
Remaining nine months of 2014 | $102.40 |
2015 | 172.7 |
2016 | 534.3 |
2017 | 91.5 |
2018 | 113.8 |
Thereafter | 1,996.10 |
Recourse | Corporate | ' |
Remaining principal payments under existing debt agreements | ' |
Remaining nine months of 2014 | 0.2 |
2015 | 0.2 |
2016 | 0.2 |
2017 | 0.3 |
2018 | 0 |
Thereafter | 450 |
Recourse | Railcar Leasing and Management Services Group | Capital lease obligations | ' |
Remaining principal payments under existing debt agreements | ' |
Remaining nine months of 2014 | 2.3 |
2015 | 3.3 |
2016 | 3.5 |
2017 | 3.7 |
2018 | 28.6 |
Thereafter | 0 |
Non-recourse | Railcar Leasing and Management Services Group | 2006 secured railcar equipment notes | ' |
Remaining principal payments under existing debt agreements | ' |
Remaining nine months of 2014 | 13 |
2015 | 18.6 |
2016 | 21.9 |
2017 | 24 |
2018 | 25.4 |
Thereafter | 133.9 |
Non-recourse | Railcar Leasing and Management Services Group | Promissory notes | ' |
Remaining principal payments under existing debt agreements | ' |
Remaining nine months of 2014 | 17 |
2015 | 21.7 |
2016 | 350.4 |
2017 | 0 |
2018 | 0 |
Thereafter | 0 |
Non-recourse | Railcar Leasing and Management Services Group | 2009 secured railcar equipment notes | ' |
Remaining principal payments under existing debt agreements | ' |
Remaining nine months of 2014 | 7.5 |
2015 | 9.6 |
2016 | 6.5 |
2017 | 6.3 |
2018 | 6.5 |
Thereafter | 160.2 |
Non-recourse | Railcar Leasing and Management Services Group | 2010 secured railcar equipment notes | ' |
Remaining principal payments under existing debt agreements | ' |
Remaining nine months of 2014 | 10.6 |
2015 | 15.3 |
2016 | 15 |
2017 | 13.7 |
2018 | 10 |
Thereafter | 258.9 |
Non-recourse | Railcar Leasing and Management Services Group | TILC warehouse facility | ' |
Remaining principal payments under existing debt agreements | ' |
Remaining nine months of 2014 | 3.5 |
2015 | 4.3 |
2016 | 3.9 |
2017 | 0 |
2018 | 0 |
Thereafter | 0 |
Non-recourse | Railcar Leasing and Management Services Group | TRL 2012 secured railcar equipment notes - RIV 2013 | ' |
Remaining principal payments under existing debt agreements | ' |
Remaining nine months of 2014 | 18.7 |
2015 | 23.5 |
2016 | 22.6 |
2017 | 23.1 |
2018 | 23.4 |
Thereafter | 381.7 |
Non-recourse | Railcar Leasing and Management Services Group | TRIP Master Funding secured railcar equipment notes | ' |
Remaining principal payments under existing debt agreements | ' |
Remaining nine months of 2014 | 29.6 |
2015 | 35.7 |
2016 | 29.3 |
2017 | 20.4 |
2018 | 19.9 |
Thereafter | 611.4 |
Non-recourse | Railcar Leasing and Management Services Group | Facility termination payments - TILC warehouse facility | ' |
Remaining principal payments under existing debt agreements | ' |
Remaining nine months of 2014 | 0 |
2015 | 40.5 |
2016 | 81 |
2017 | 0 |
2018 | 0 |
Thereafter | $0 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
debt_holders | ||
Recourse | Corporate revolving credit facility | ' | ' |
Debt (Textual) [Abstract] | ' | ' |
Revolving credit facility | $425 | ' |
Maturity date of credit facility | 20-Oct-16 | ' |
Used revolving credit facility for letters of credit | 67 | ' |
Availability of the revolving credit facility | 358 | ' |
Borrowing under revolving credit facility exclusive of letters of credit | 0 | ' |
Letter of credit expiring in current year | 65.5 | ' |
Credit facility, description of variable rate reference rate basis | 'Libor | ' |
Percentage points added to Libor to compute interest rates on the credit facility | 1.50% | ' |
Credit facility, description of variable rate reference rate basis, alternative computation | 'prime | ' |
Percentage points added to prime to compute interest rates on the credit facility, alternative computation | 0.50% | ' |
Recourse | Convertible Subordinated Notes | ' | ' |
Debt (Textual) [Abstract] | ' | ' |
Capital in excess of par value related to the Convertible Subordinated Notes' conversion options | 92.8 | 92.8 |
Date through which debt discount is being amortized | 1-Jun-18 | ' |
Effective annual interest rate yield based upon the estimated market interest rate | 8.42% | ' |
Percentage of conversion price at which Convertible Subordinated Notes are convertible | 130.00% | ' |
Conversion price of Convertible Subordinated Notes (in dollars per share) | $50.69 | ' |
Number of holders who have elected to convert their convertible debt | 0 | ' |
Non-recourse | TILC warehouse facility | ' | ' |
Debt (Textual) [Abstract] | ' | ' |
Revolving credit facility | 475 | ' |
Availability of the revolving credit facility | 341.8 | ' |
Credit facility, amount outstanding | $133.20 | ' |
Interest at a defined index rate plus a margin for advances under the facility | 1.92% | ' |
Maturity date | 'June 2015 | ' |
Number of installments payable for amounts outstanding at maturity, absent renewal | 3 | ' |
Installment payable date, installment one | 'December 2015 | ' |
Installment payable date, installment two | 'June 2016 | ' |
Installment payable date, installment three | 'December 2016 | ' |
Other_Net_Details
Other, Net (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other, net (income) expense | ' | ' |
Foreign currency exchange transactions | $0.40 | ($0.30) |
Gain on equity investments | -0.2 | -0.1 |
Other | -0.6 | -2.3 |
Other, net | -0.4 | -2.7 |
Income related to the change in fair value of certain equity repurchase agreements | $1.70 | ' |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Reconciliation between the statutory United States Federal income tax rate and the Company's effective income tax rate | ' | ' |
Statutory rate | 35.00% | 35.00% |
State taxes | 0.90% | 2.00% |
Domestic production activities deduction | -2.20% | -0.40% |
Noncontrolling interest in partially-owned subsidiaries | -1.20% | 0.00% |
Other, net | 0.00% | -0.30% |
Effective rate | 32.50% | 36.30% |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Change in unrecognized tax benefits | ' | ' |
Beginning balance | $55 | $48.70 |
Additions for tax positions related to the current year | 1.2 | 1.1 |
Reductions for tax positions of prior years | -0.1 | 0 |
Ending balance | $56.10 | $49.80 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Income Tax Contingency [Line Items] | ' | ' | ' |
Additions for tax positions related to the current year | $1.20 | $1.10 | ' |
Reductions for tax positions of prior years | 0.1 | 0 | ' |
Unrecognized tax benefits including interest and penalties that would affect the Company's effective tax rate if recognized | 13.8 | 12.1 | ' |
Total accrued interest and penalties | 10.9 | ' | 10.8 |
Increase in income tax expense related to interest and penalties on unrecognized tax benefits | 0.1 | 0.2 | ' |
Lapse in Statute of Limitations | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Reasonably possible change to unrecognized tax benefits within twelve months | $0.10 | ' | ' |
Swiss subsidiary | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Number of subsidiaries | 2 | ' | ' |
General period of statute of limitations in Switzerland | '5 years | ' | ' |
Extended period of statute of limitations in Switzerland | '15 years | ' | ' |
Employee_Retirement_Plans_Deta
Employee Retirement Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Components of Net Retirement Cost | ' | ' |
Service cost | $0.10 | $0.30 |
Interest | 5 | 4.7 |
Expected return on plan assets | -7.7 | -6.6 |
Amortization of actuarial loss | 0.3 | 1.2 |
Defined benefit expense | -2.3 | -0.4 |
Profit sharing | 3.7 | 3.1 |
Net expense | $1.40 | $2.70 |
Employee_Retirement_Plans_Deta1
Employee Retirement Plans (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual employer contributions to defined benefit plans | $4.10 | $3.60 |
Expected full year contributions by the employer to defined benefit plans | $15.30 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Changes in accumulated other comprehensive loss | ' | ' | |
Currency translation adjustments, Beginning Balance | ($16.50) | ' | |
Currency translation adjustments, Other comprehensive loss before reclassifications | 0 | ' | |
Currency translation adjustments, Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $0.0 | 0 | ' | |
Currency translation adjustments, Amounts reclassified from accumulated other comprehensive loss, tax benefit | 0 | ' | |
Currency translation adjustments, Less: noncontrolling interest | 0 | ' | |
Currency translation adjustments, Other comprehensive income | 0 | ' | |
Currency translation adjustments, Ending Balance | -16.5 | ' | |
Unrealized loss on derivative financial instruments, Beginning Balance | -18.7 | ' | |
Unrealized loss on derivative financial instruments, Other comprehensive loss before reclassifications | -1.2 | -0.7 | |
Unrealized loss on derivative financial instruments, Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $2.0 | 4.3 | 4.6 | |
Unrealized loss on derivative financial instruments, Amounts reclassified from accumulated other comprehensive loss, tax benefit | 2 | 2.8 | |
Unrealized loss on derivative financial instruments, Less: noncontrolling interest | -0.7 | ' | |
Unrealized loss on derivative financial instruments, Other comprehensive income | 2.4 | ' | |
Unrealized loss on derivative financial instruments, Ending Balance | -16.3 | ' | |
Net actuarial gains/(losses) of defined benefit plans, Beginning Balance | -43 | ' | |
Net actuarial gains/(losses) of defined benefit plans, Other comprehensive loss before reclassifications | 0 | ' | |
Net actuarial gains/(losses) of defined benefit plans, Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $0.1 | 0.2 | 0.7 | |
Net actuarial gains/(losses) of defined benefit plans, Amounts reclassified from accumulated other comprehensive loss, tax benefit | 0.1 | 0.5 | |
Net actuarial gains/(losses) of defined benefit plans, Less: noncontrolling interest | 0 | ' | |
Net actuarial gains/(losses) of defined benefit plans, Other comprehensive income | 0.2 | ' | |
Net actuarial gains/(losses) of defined benefit plans, Ending Balance | -42.8 | ' | |
Accumulated Other Comprehensive Loss, Beginning Balance | -78.2 | ' | |
Accumulated Other Comprehensive Loss, Other comprehensive loss before reclassifications | -1.2 | ' | |
Accumulated Other Comprehensive Loss, Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $2.1 | 4.5 | ' | |
Accumulated Other Comprehensive Loss, Amounts reclassified from accumulated other comprehensive loss, tax benefit | 2.1 | ' | |
Accumulated Other Comprehensive Loss, Less: noncontrolling interest | -0.7 | ' | |
Accumulated Other Comprehensive Loss, Other comprehensive income | 2.6 | ' | |
Accumulated Other Comprehensive Loss, Ending Balance | -75.6 | [1] | ' |
Cost of revenues | ' | ' | |
Accumualted Other Comprehensive Income [Line Items] | ' | ' | |
Before-tax reclassification of net actuarial gains/(losses) of defined benefit plans included in cost of revenues | $0.20 | ' | |
[1] | (unaudited) |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Stock-based compensation | $10.90 | $9 |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net Income Per Common Share (Textual) [Abstract] | ' | ' |
Total weighted average restricted shares and antidilutive stock options (in shares) | 3.8 | 3.2 |
Computation of basic and diluted net income attributable to Trinity Industries, Inc | ' | ' |
Net income from continuing operations | $233.30 | $72.20 |
Less: net income (loss) from continuing operations attributable to noncontrolling interest | 6.6 | -0.3 |
Net income from continuing operations attributable to Trinity Industries, Inc. | 226.7 | 72.5 |
Unvested restricted share participation | -7.8 | -2.3 |
Net income from continuing operations attributable to Trinity Industries, Inc. – basic | 218.9 | 70.2 |
Net income from continuing operations attributable to Trinity Industries, Inc. - basic, Average Shares | 75.1 | 76.9 |
Net income from continuing operations attributable to Trinity Industries, Inc. - basic, EPS | $2.91 | $0.91 |
Effect of dilutive securities: | ' | ' |
Stock options, Income (Loss) | 0 | 0 |
Stock options, Average Shares | 0 | 0.1 |
Convertible Subordinated Notes, Income (Loss) | 0.2 | 0 |
Convertible Subordinated Notes, Average Shares | 1.9 | 0 |
Convertible Subordinated Notes, Income (Loss), Discontinued operations | 0 | 0 |
Net income from continuing operations attributable to Trinity Industries, Inc. – diluted | 219.1 | 70.2 |
Net income from continuing operations attributable to Trinity Industries, Inc. - diluted, Average Shares | 77 | 77 |
Net income from continuing operations attributable to Trinity Industries, Inc. - diluted, EPS | $2.85 | $0.91 |
Net income (loss) from discontinued operations, net of taxes | -0.3 | 6.6 |
Unvested restricted share participation | 0 | -0.2 |
Net income (loss) from discontinued operations, net of taxes – basic | -0.3 | 6.4 |
Net income (loss) from discontinued operations, net of taxes - basic, EPS | $0 | $0.08 |
Net income (loss) from discontinued operations, net of taxes – diluted | ($0.30) | $6.40 |
Net income (loss) from discontinued operations, net of taxes - diluted, EPS | $0 | $0.08 |
Contingencies_Details
Contingencies (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Railcar | |
Contingencies (Textual) [Abstract] | ' |
Total accruals | $20.10 |
Number of tank cars to be voluntarily recertified by the Company | 948 |
Minimum possible loss | 9.7 |
Maximum possible loss | 30.4 |
Highway Products Litigation | ' |
Contingencies (Textual) [Abstract] | ' |
Total accruals | 0 |
Train Derailment | ' |
Contingencies (Textual) [Abstract] | ' |
Total accruals | 0 |
Number of tank cars manufactured by the Company | 35 |
Number of tank cars involved in derailment | 72 |
Number of tank cars owned by the Company and leased to third party | 13 |
Environmental and workplace matters | ' |
Contingencies (Textual) [Abstract] | ' |
Total accruals | $11.30 |