Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 15, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TRINITY INDUSTRIES INC | |
Entity Central Index Key | 99780 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period | Q1 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 154,943,488 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Total revenues | $1,626.70 | $1,460.50 |
Cost of revenues: | ||
Total cost of revenues | 1,211.10 | 1,074 |
Selling, engineering, and administrative expenses: | ||
Total selling, engineering, and administrative expenses | 98.3 | 83.6 |
Gains on disposition of property, plant, and equipment: | ||
Net gains on railcar lease fleet sales owned more than one year at the time of sale | 14.9 | 77.5 |
Other | 0.9 | 10.9 |
Total gains on disposition of property, plant, and equipment | 15.8 | 88.4 |
Total operating profit | 333.1 | 391.3 |
Other (income) expense: | ||
Interest income | -0.5 | -0.4 |
Interest expense | 51.5 | 46.3 |
Other, net | -2.3 | -0.1 |
Total other (income) expense | 48.7 | 45.8 |
Income before income taxes | 284.4 | 345.5 |
Provision for income taxes | 95.4 | 112.5 |
Net income | 189 | 233 |
Net income attributable to noncontrolling interest | 8.8 | 6.6 |
Net income attributable to Trinity Industries, Inc. | 180.2 | 226.4 |
Net income attributable to Trinity Industries, Inc. per common share: | ||
Basic (in dollars per share) | $1.15 | $1.46 |
Diluted (in dollars per share) | $1.13 | $1.42 |
Weighted average number of shares outstanding: | ||
Basic (in shares) | 151.2 | 150.2 |
Diluted (in shares) | 154.3 | 154 |
Dividends declared per common share (in dollars per share) | $0.10 | $0.08 |
Manufacturing | ||
Revenues: | ||
Total revenues | 1,382.50 | 1,018.30 |
Cost of revenues: | ||
Total cost of revenues | 1,084.50 | 794.7 |
Selling, engineering, and administrative expenses: | ||
Total selling, engineering, and administrative expenses | 61.3 | 49.5 |
Leasing | ||
Revenues: | ||
Total revenues | 244.2 | 442.2 |
Cost of revenues: | ||
Total cost of revenues | 126.6 | 279.3 |
Selling, engineering, and administrative expenses: | ||
Total selling, engineering, and administrative expenses | 10.3 | 11 |
Other | ||
Selling, engineering, and administrative expenses: | ||
Total selling, engineering, and administrative expenses | $26.70 | $23.10 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income | $189 | $233 |
Derivative financial instruments: | ||
Unrealized losses arising during the period, net of tax benefit of $0.2 and $0.4 | -0.3 | -1.2 |
Reclassification adjustments for losses included in net income, net of tax benefit of $2.1 and $2.0 | 3.8 | 4.3 |
Currency translation adjustment | -3.8 | 0 |
Defined benefit plans: | ||
Amortization of net actuarial losses, net of tax benefit of $0.5 and $0.1 | 0.8 | 0.2 |
Total other comprehensive income (loss) | 0.5 | 3.3 |
Comprehensive income | 189.5 | 236.3 |
Less: comprehensive income attributable to noncontrolling interest | 9.4 | 7.3 |
Comprehensive income attributable to Trinity Industries, Inc. | $180.10 | $229 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Unrealized losses arising during the period, tax benefit | $0.20 | $0.40 |
Reclassification adjustments for losses included in net income, tax benefit | 2.1 | 2 |
Amortization of net actuarial losses, tax benefit | $0.50 | $0.10 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
ASSETS | ||||
Cash and cash equivalents | $590.70 | [1] | $887.90 | |
Short-term marketable securities | 100 | [1] | 75 | |
Receivables, net of allowance | 544.9 | [1] | 405.3 | |
Income tax receivable | 0 | [1] | 58.6 | |
Inventories: | ||||
Raw materials and supplies | 590.8 | [1] | 585.4 | |
Work in process | 303.3 | [1] | 298.2 | |
Finished goods | 151.2 | [1] | 184.8 | |
Inventory, net | 1,045.30 | [1] | 1,068.40 | |
Restricted cash, including partially-owned subsidiaries of $89.1 and $91.9 | 211.1 | [1] | 234.7 | |
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $2,260.6 and $2,261.2 | 6,870.30 | [1] | 6,586 | |
Less accumulated depreciation, including partially-owned subsidiaries of $277.2 and $261.3 | -1,721.40 | [1] | -1,683.10 | |
Property, plant, and equipment, net | 5,148.90 | [1] | 4,902.90 | |
Goodwill | 771.7 | [1] | 773.2 | [2] |
Other assets | 309.8 | [1] | 327.8 | |
Total assets | 8,722.40 | [1] | 8,733.80 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accounts payable | 299.6 | [1] | 295.4 | |
Accrued liabilities | 612.3 | [1] | 709.6 | |
Debt: | ||||
Recourse, net of unamortized discount of $56.2 and $60.0 | 832.3 | [1] | 829.3 | |
Non-recourse: | ||||
Wholly-owned subsidiaries | 1,155.40 | [1] | 1,207.80 | |
Partially-owned subsidiaries | 1,498.20 | [1] | 1,515.90 | |
Total debt | 3,485.90 | [1] | 3,553 | |
Deferred income | 29.1 | [1] | 36.4 | |
Deferred income taxes | 630.6 | [1] | 632.6 | |
Other liabilities | 113.5 | [1] | 109.4 | |
Total liabilities | 5,171 | [1] | 5,336.40 | |
Stockholders’ equity: | ||||
Preferred stock – 1.5 shares authorized and unissued | 0 | [1] | 0 | |
Common stock – 200.0 shares authorized | 155.7 | [1] | 155.7 | |
Capital in excess of par value | 480.2 | [1] | 463.2 | |
Retained earnings | 2,654.50 | [1] | 2,489.90 | |
Accumulated other comprehensive loss | -112 | [1] | -111.9 | |
Treasury stock | -26.6 | [1] | -1 | |
Total stockholders' equity | 3,151.80 | [1] | 2,995.90 | |
Noncontrolling interest | 399.6 | [1] | 401.5 | |
Total stockholders' equity, including portion attributable to noncontrolling interest | 3,551.40 | [1] | 3,397.40 | |
Total liabilities and stockholders' equity | $8,722.40 | [1] | $8,733.80 | |
[1] | (unaudited) | |||
[2] | (as reported) |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Millions, except Share data, unless otherwise specified | |||
Unamortized discount | $56.20 | [1] | $60 |
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 | 211.1 | [1] | 234.7 |
Property, plant, and equipment, at cost | 6,870.30 | [1] | 6,586 |
Less accumulated depreciation | 1,721.40 | [1] | 1,683.10 |
Partially-owned subsidiaries | |||
Restricted cash | 89.1 | [1] | 91.9 |
Property, plant, and equipment, at cost | 2,260.60 | [1] | 2,261.20 |
Less accumulated depreciation | $277.20 | [1] | $261.30 |
[1] | (unaudited) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (unaudited) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Operating activities: | |||
Net income | $189 | $233 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 64 | 55.3 | |
Stock-based compensation expense | 16.4 | 10.9 | |
Excess tax benefits from stock-based compensation | -0.4 | -0.4 | |
Provision (benefit) for deferred income taxes | -2.9 | 1 | |
Net gains on railcar lease fleet sales owned more than one year at the time of sale | -14.9 | -77.5 | |
Gains on disposition of property, plant, equipment, and other assets | -0.9 | -10.9 | |
Non-cash interest expense | 7.7 | 7.8 | |
Other | 0.8 | -0.2 | |
Changes in assets and liabilities: | |||
(Increase) decrease in receivables | -76.6 | -43.3 | |
(Increase) decrease in inventories | 31.7 | -57.9 | |
(Increase) decrease in restricted cash | -9.4 | 25 | |
(Increase) decrease in other assets | 0.8 | -10.6 | |
Increase (decrease) in accounts payable | 4 | 38.4 | |
Increase (decrease) in accrued liabilities | -103.3 | 30.8 | |
Increase (decrease) in other liabilities | 3.4 | 3.9 | |
Net cash provided by operating activities | 109.4 | 205.3 | |
Investing activities: | |||
(Increase) decrease in short-term marketable securities | -25 | -106.7 | |
Proceeds from railcar lease fleet sales owned more than one year at the time of sale | 78.5 | 224.3 | |
Proceeds from disposition of property, plant, equipment, and other assets | 1.6 | 17.2 | |
Capital expenditures – leasing, net of sold lease fleet railcars owned one year or less with a net cost of $53.1 and $204.0 | -283.4 | 0.4 | |
Capital expenditures – manufacturing and other | -53.5 | -49.1 | |
Acquisitions, net of cash acquired | -45.5 | -112.6 | |
Other | 4.2 | 2.9 | |
Net cash required by investing activities | -323.1 | -23.6 | |
Financing activities: | |||
Proceeds from issuance of common stock, net | 0 | 0.3 | |
Excess tax benefits from stock-based compensation | 0.4 | 0.4 | |
Payments to retire debt | -70.9 | -53.1 | |
(Increase) decrease in restricted cash | 33 | 4.3 | |
Shares repurchased | -18 | -12.5 | |
Dividends paid to common shareholders | -15.6 | -11.6 | |
Purchase of shares to satisfy employee tax on vested stock | -0.4 | -0.1 | |
Distributions to noncontrolling interest | -11.3 | -5.4 | |
Other | -0.7 | -0.3 | |
Net cash required by financing activities | -83.5 | -78 | |
Net increase (decrease) in cash and cash equivalents | -297.2 | 103.7 | |
Cash and cash equivalents at beginning of period | 887.9 | 428.5 | |
Cash and cash equivalents at end of period | $590.70 | [1] | $532.20 |
[1] | (unaudited) |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Capital expenditures – leasing, net of sold railcars owned one year or less, net cost | $53.10 | $204 |
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, 2014 | $3,397.40 | $155.70 | $463.20 | $2,489.90 | ($111.90) | ($1) | $2,995.90 | $401.50 | |
Beginning balance, Shares at Dec. 31, 2014 | 155,700,000 | -100,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 189 | 180.2 | 180.2 | 8.8 | |||||
Other comprehensive income (loss) | 0.5 | -0.1 | -0.1 | 0.6 | |||||
Cash dividends on common stock | -15.6 | -15.6 | -15.6 | ||||||
Restricted shares, net | 16 | 16.6 | -0.6 | 16 | |||||
Restricted shares, net, Shares | 0 | ||||||||
Shares repurchased | -25 | -25 | -25 | ||||||
Shares repurchased, Shares | -700,000 | ||||||||
Excess tax benefits from stock-based compensation | 0.4 | 0.4 | 0.4 | ||||||
Distributions to noncontrolling interest | -11.3 | -11.3 | |||||||
Ending balance at Mar. 31, 2015 | $3,551.40 | [1] | $155.70 | $480.20 | $2,654.50 | ($112) | ($26.60) | $3,151.80 | $399.60 |
Ending balance, Shares at Mar. 31, 2015 | 155,700,000 | -800,000 | |||||||
[1] | (unaudited) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
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 a 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, 2015, and the results of operations and cash flows for the three months ended March 31, 2015 and 2014, 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, 2015 may not be indicative of expected results of operations for the year ending December 31, 2015. 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, 2014. | |
Stockholders' Equity | |
On May 5, 2014, the Company's Board of Directors authorized a 2-for-1 stock split on its common shares in the form of a 100% stock dividend. The additional shares were distributed on June 19, 2014, to shareholders of record at the close of business on June 5, 2014. All share and per share information, including dividends, has been retroactively adjusted to reflect the 2-for-1 stock split. | |
In March 2014, the Company’s Board of Directors authorized a $250 million share repurchase program that expires on December 31, 2015. Under the program, 721,040 shares were repurchased during the three months ended March 31, 2015, at a cost of approximately $25.0 million. During the three months ended March 31, 2014, the Company repurchased 276,546 shares at a cost of approximately $10.0 million. Certain shares of stock repurchased during March 2015, totaling $7.0 million, were cash settled in April 2015 in accordance with normal settlement practices. | |
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. | |
Recent Accounting Pronouncements | |
In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03") which changes the presentation of debt issuance costs in financial statements to present such costs as a direct deduction from the related debt liability rather than as an asset. ASU 2015-03 will become effective for public companies during interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. We do not expect the adoption of ASU 2015-03 will have a material impact on our consolidated financial statements. | |
In February 2015, the FASB issued Accounting Standards Update No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis" ("ASU 2015-02") which updates the considerations on whether an entity should consolidate certain legal entities. The update removes the indefinite deferral of specialized guidance for certain investment funds and changes the way that entities evaluate limited partnerships and fees paid to service providers in the consolidation determination. ASU 2015-02 will become effective for public companies during interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. We do not expect the adoption of ASU 2015-02 will have a material impact on our consolidated financial statements. | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers," ("ASU 2014-09") providing common revenue recognition guidance for U.S. GAAP. Under ASU 2014-09, an entity recognizes revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. It also requires additional detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 will become effective for public companies during interim and annual reporting periods beginning after December 15, 2016; however, in April 2015, the FASB voted to propose a one year deferral of the effective date. The proposed deferral may permit early adoption, but would not allow adoption any earlier than the original effective date of the standard. We are currently evaluating the impact this standard will have on our consolidated financial statements. | |
Reclassifications | |
Certain prior year balances have been reclassified in the consolidated statements of operations and cash flows to conform to the 2015 presentation. |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Business Combinations [Abstract] | ||||||||
Acquisitions and Divestitures | Acquisitions and Divestitures | |||||||
The Company's acquisition and divestiture activities are summarized below: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Acquisitions: | ||||||||
Purchase price | $ | 46.4 | $ | 117.6 | ||||
Net cash paid | $ | 45.5 | $ | 112.6 | ||||
Goodwill recorded | $ | — | $ | 82.1 | ||||
In March 2015, we completed the acquisition of the assets of a lightweight aggregates business in our Construction Products Group with facilities located in Louisiana, Alabama, and Arkansas. As of March 31, 2015, the acquisition was recorded based on a preliminary valuation of the acquired 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. There were no business divestitures during the three months ended March 31, 2015 and 2014. | ||||||||
With regard to the acquisition of Meyer Steel Structures (“Meyer”) in August 2014, the purchase price allocation continues to be preliminary as of March 31, 2015 due to the size and complexity of Meyer. We expect to complete our purchase price allocation as soon as reasonably possible not to exceed one year from the acquisition date. The following table represents our preliminary purchase price allocation as of March 31, 2015: | ||||||||
March 31, | ||||||||
2015 | ||||||||
(in millions) | ||||||||
Accounts receivable | $ | 29.4 | ||||||
Inventories | 36.1 | |||||||
Property, plant, and equipment | 70.5 | |||||||
Goodwill | 409.1 | |||||||
Other assets | 76 | |||||||
Accounts payable | (15.4 | ) | ||||||
Accrued liabilities | (10.1 | ) | ||||||
Total net assets acquired | $ | 595.6 | ||||||
Fair_Value_Accounting
Fair Value Accounting | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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, 2015 | ||||||||||||||||
(in millions) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 353.8 | $ | — | $ | — | $ | 353.8 | ||||||||
Restricted cash | 211.1 | — | — | 211.1 | ||||||||||||
Total assets | $ | 564.9 | $ | — | $ | — | $ | 564.9 | ||||||||
Liabilities: | ||||||||||||||||
Interest rate hedges:(1) | ||||||||||||||||
Wholly-owned subsidiaries | $ | — | $ | 2.5 | $ | — | $ | 2.5 | ||||||||
Partially-owned subsidiaries | — | 2.2 | — | 2.2 | ||||||||||||
Fuel derivative instruments(1) | — | 1.4 | — | 1.4 | ||||||||||||
Total liabilities | $ | — | $ | 6.1 | $ | — | $ | 6.1 | ||||||||
Fair Value Measurement as of December 31, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 415.2 | $ | — | $ | — | $ | 415.2 | ||||||||
Restricted cash | 234.7 | — | — | 234.7 | ||||||||||||
Total assets | $ | 649.9 | $ | — | $ | — | $ | 649.9 | ||||||||
Liabilities: | ||||||||||||||||
Interest rate hedges:(1) | ||||||||||||||||
Wholly-owned subsidiaries | $ | — | $ | 6.4 | $ | — | $ | 6.4 | ||||||||
Partially-owned subsidiaries | — | 2 | — | 2 | ||||||||||||
Fuel derivative instruments(1) | — | 2.1 | — | 2.1 | ||||||||||||
Total liabilities | $ | — | $ | 10.5 | $ | — | $ | 10.5 | ||||||||
(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 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. The Company's fuel derivative instruments, which are commodity swaps, are valued using energy and commodity market data. 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-15 | 31-Dec-14 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||||
(in millions) | ||||||||||||||||
Recourse: | ||||||||||||||||
Senior notes | $ | 399.6 | $ | 402.6 | $ | 399.6 | $ | 387 | ||||||||
Convertible subordinated notes | 449.5 | 699 | 449.5 | 593.9 | ||||||||||||
Less: unamortized discount | (55.8 | ) | (59.6 | ) | ||||||||||||
393.7 | 389.9 | |||||||||||||||
Capital lease obligations | 38.3 | 38.3 | 39.1 | 39.1 | ||||||||||||
Other | 0.7 | 0.7 | 0.7 | 0.7 | ||||||||||||
832.3 | 1,140.60 | 829.3 | 1,020.70 | |||||||||||||
Non-recourse: | ||||||||||||||||
2006 secured railcar equipment notes | 218.6 | 240.6 | 223 | 245.6 | ||||||||||||
Promissory notes | 341.3 | 340.8 | 363.9 | 362.7 | ||||||||||||
2009 secured railcar equipment notes | 186.4 | 225.2 | 188.8 | 227.7 | ||||||||||||
2010 secured railcar equipment notes | 307.7 | 340.9 | 311.5 | 344 | ||||||||||||
TILC warehouse facility | 101.4 | 101.4 | 120.6 | 120.6 | ||||||||||||
TRL 2012 secured railcar equipment notes (RIV 2013) | 466.1 | 466.1 | 472.2 | 470.3 | ||||||||||||
TRIP Master Funding secured railcar equipment notes | 1,032.10 | 1,110.00 | 1,043.70 | 1,121.40 | ||||||||||||
2,653.60 | 2,825.00 | 2,723.70 | 2,892.30 | |||||||||||||
Total | $ | 3,485.90 | $ | 3,965.60 | $ | 3,553.00 | $ | 3,913.00 | ||||||||
The estimated fair value of our senior notes and convertible subordinated notes were based on a quoted market price in a market with little activity as of March 31, 2015 and December 31, 2014, 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, 2015 and December 31, 2014, 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, 2015 | ||||||||||||||||
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, components, and maintenance services; (2) the Construction Products Group, which manufactures and sells highway products and other primarily-steel products and services 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 and distribution containers, tank heads for pressure and non-pressure vessels, and utility structures for electricity transmission and distribution; 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 leasing, management, maintenance, and administrative 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 profit 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 for these segments is shown in the tables below. We operate principally in North America. | ||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||
Revenues | Operating Profit (Loss) | |||||||||||||||
External | Intersegment | Total | ||||||||||||||
(in millions) | ||||||||||||||||
Rail Group | $ | 875.4 | $ | 269.1 | $ | 1,144.50 | $ | 212.7 | ||||||||
Construction Products Group | 111.4 | 1.4 | 112.8 | 8.3 | ||||||||||||
Inland Barge Group | 153.1 | — | 153.1 | 27.5 | ||||||||||||
Energy Equipment Group | 241.5 | 58.6 | 300.1 | 37.2 | ||||||||||||
Railcar Leasing and Management Services Group | 244.2 | 0.6 | 244.8 | 122.8 | ||||||||||||
All Other | 1.1 | 27 | 28.1 | (1.5 | ) | |||||||||||
Segment Totals before Eliminations and Corporate | 1,626.70 | 356.7 | 1,983.40 | 407 | ||||||||||||
Corporate | — | — | — | (26.7 | ) | |||||||||||
Eliminations – Lease subsidiary | — | (259.0 | ) | (259.0 | ) | (48.3 | ) | |||||||||
Eliminations – Other | — | (97.7 | ) | (97.7 | ) | 1.1 | ||||||||||
Consolidated Total | $ | 1,626.70 | $ | — | $ | 1,626.70 | $ | 333.1 | ||||||||
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 | ||||||||
PartiallyOwned_Leasing_Subsidi
Partially-Owned Leasing Subsidiaries | 3 Months Ended |
Mar. 31, 2015 | |
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 in which the Company has a controlling interest. Each is 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. | |
At March 31, 2015, the Company's carrying value of its investment in TRIP Holdings and RIV 2013 totaled $227.8 million representing the Company's weighted average 39% ownership interest. The remaining 61% weighted average interest is owned by institutional investors. The Company's investments in its partially-owned leasing subsidiaries are eliminated in consolidation. | |
Each of TRIP Holdings and RIV 2013 has wholly-owned subsidiaries which are the owners of railcars acquired from the Company's Rail and Leasing Groups. 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). Railcar purchases were funded by secured borrowings and capital contributions from TILC and third-party equity investors.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. | |
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. | |
The assets of each of TRIP Master Funding and TRL 2012 may only be used to satisfy the particular subsidiary's liabilities, and the creditors of each of TRIP Master Funding 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 TRIP Holdings as of March 31, 2015, TILC has a commitment that expires in May 2016 to provide additional equity funding of up to $5.7 million for the purchase of railcars and satisfaction of certain other liabilities of TRIP Holdings. The third-party equity investors in TRIP Holdings have a similar commitment that expires in May 2016 to provide up to $12.9 million of additional equity funding. 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. | |
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, 2015 | |||||||||||||||||||||||||||||
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-15 | |||||||||||||||||||||||||||||
Leasing Group | |||||||||||||||||||||||||||||
Wholly- | Partially-Owned Subsidiaries | Manufacturing/ | Total | ||||||||||||||||||||||||||
Owned | Corporate | ||||||||||||||||||||||||||||
Subsidiaries | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Cash, cash equivalents, and short-term marketable securities | $ | 4.4 | $ | — | $ | 686.3 | $ | 690.7 | |||||||||||||||||||||
Property, plant, and equipment, net | $ | 2,833.30 | $ | 1,983.40 | $ | 916.4 | $ | 5,733.10 | |||||||||||||||||||||
Net deferred profit on railcars sold to | (584.2 | ) | |||||||||||||||||||||||||||
the Leasing Group | |||||||||||||||||||||||||||||
Consolidated property, plant and equipment, net | $ | 5,148.90 | |||||||||||||||||||||||||||
Restricted cash | $ | 122 | $ | 89.1 | $ | — | $ | 211.1 | |||||||||||||||||||||
Debt: | |||||||||||||||||||||||||||||
Recourse | $ | 38.3 | $ | — | $ | 850.2 | $ | 888.5 | |||||||||||||||||||||
Less: unamortized discount | — | — | (56.2 | ) | (56.2 | ) | |||||||||||||||||||||||
38.3 | — | 794 | 832.3 | ||||||||||||||||||||||||||
Non-recourse | 1,155.40 | 1,498.20 | — | 2,653.60 | |||||||||||||||||||||||||
Total debt | $ | 1,193.70 | $ | 1,498.20 | $ | 794 | $ | 3,485.90 | |||||||||||||||||||||
Net deferred tax liabilities | $ | 654.7 | $ | 0.9 | $ | (40.9 | ) | $ | 614.7 | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Leasing Group | |||||||||||||||||||||||||||||
Wholly- | Partially-Owned Subsidiaries | Manufacturing/ | Total | ||||||||||||||||||||||||||
Owned | Corporate | ||||||||||||||||||||||||||||
Subsidiaries | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Cash, cash equivalents, and short-term marketable securities | $ | 11.9 | $ | — | $ | 951 | $ | 962.9 | |||||||||||||||||||||
Property, plant, and equipment, net | $ | 2,599.20 | $ | 1,999.90 | $ | 861 | $ | 5,460.10 | |||||||||||||||||||||
Net deferred profit on railcars sold to | (557.2 | ) | |||||||||||||||||||||||||||
the Leasing Group | |||||||||||||||||||||||||||||
Consolidated property, plant and equipment, net | $ | 4,902.90 | |||||||||||||||||||||||||||
Restricted cash | $ | 142.8 | $ | 91.9 | $ | — | $ | 234.7 | |||||||||||||||||||||
Debt: | |||||||||||||||||||||||||||||
Recourse | $ | 39.1 | $ | — | $ | 850.2 | $ | 889.3 | |||||||||||||||||||||
Less: unamortized discount | — | — | (60.0 | ) | (60.0 | ) | |||||||||||||||||||||||
39.1 | — | 790.2 | 829.3 | ||||||||||||||||||||||||||
Non-recourse | 1,207.80 | 1,515.90 | — | 2,723.70 | |||||||||||||||||||||||||
Total debt | $ | 1,246.90 | $ | 1,515.90 | $ | 790.2 | $ | 3,553.00 | |||||||||||||||||||||
Net deferred tax liabilities | $ | 658.2 | $ | 0.9 | $ | (44.1 | ) | $ | 615 | ||||||||||||||||||||
Net deferred profit on railcars sold to the Leasing Group consists of intersegment profit that is eliminated in consolidation and is, therefore, not allocated to an operating segment. 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, | |||||||||||||||||||||||||||||
2015 | 2014 | Percent | |||||||||||||||||||||||||||
($ in millions) | Change | ||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Leasing and management | $ | 166.1 | $ | 150.2 | 10.6 | % | |||||||||||||||||||||||
Sales of railcars owned one year or less at the time of sale | 78.7 | 292.9 | * | ||||||||||||||||||||||||||
Total revenues | $ | 244.8 | $ | 443.1 | (44.8 | ) | |||||||||||||||||||||||
Operating profit: | |||||||||||||||||||||||||||||
Leasing and management | $ | 82.3 | $ | 63.9 | 28.8 | ||||||||||||||||||||||||
Railcar sales: | |||||||||||||||||||||||||||||
Railcars owned one year or less at the time of sale | 25.6 | 88.9 | |||||||||||||||||||||||||||
Railcars owned more than one year at the time of sale | 14.9 | 77.5 | |||||||||||||||||||||||||||
Total operating profit | $ | 122.8 | $ | 230.3 | (46.7 | ) | |||||||||||||||||||||||
Operating profit margin: | |||||||||||||||||||||||||||||
Leasing and management | 49.5 | % | 42.5 | % | |||||||||||||||||||||||||
Railcar sales | * | * | |||||||||||||||||||||||||||
Total operating profit margin | 50.2 | % | 52 | % | |||||||||||||||||||||||||
Selected expense information(1): | |||||||||||||||||||||||||||||
Depreciation | $ | 34.1 | $ | 32.5 | 4.9 | ||||||||||||||||||||||||
Maintenance | $ | 19.9 | $ | 21 | (5.2 | ) | |||||||||||||||||||||||
Rent | $ | 11.8 | $ | 13.3 | (11.3 | ) | |||||||||||||||||||||||
Interest | $ | 37.9 | $ | 37.3 | 1.6 | ||||||||||||||||||||||||
* 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. | |||||||||||||||||||||||||||||
During the three months ended March 31, 2015 and 2014, the Company received proceeds from the sale of leased railcars to Element Financial Corporation ("Element") under the strategic alliance with Element announced in December 2013 as follows: | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Leasing Group: | |||||||||||||||||||||||||||||
Railcars owned one year or less at the time of sale | $ | 50.1 | $ | 277.9 | |||||||||||||||||||||||||
Railcars owned more than one year at the time of sale | 61.7 | 222.7 | |||||||||||||||||||||||||||
Rail Group | 15.2 | 13.7 | |||||||||||||||||||||||||||
$ | 127 | $ | 514.3 | ||||||||||||||||||||||||||
Since the inception of our alliance, the Company has received proceeds of $1,114.7 million from the sale of leased railcars to Element. | |||||||||||||||||||||||||||||
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 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Future contractual minimum rental revenue | $ | 384.8 | $ | 437.7 | $ | 363.4 | $ | 289 | $ | 206.5 | $ | 304 | $ | 1,985.40 | |||||||||||||||
Debt. The Leasing Group’s debt at March 31, 2015 consisted of both recourse and non-recourse debt. As of March 31, 2015, Trinity’s wholly-owned subsidiaries included in the Leasing Group held equipment with a net book value of $1,781.5 million which is pledged as collateral for Leasing Group debt held by those subsidiaries, including equipment with a net book value of $45.2 million securing capital lease obligations. The net book value of unpledged equipment at March 31, 2015 was $983.2 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 its members, including 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 $1,387.4 million is pledged as collateral for the TRIP Master Funding debt. TRL 2012 equipment with a net book value of $596.0 million 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. In February 2015, the Leasing Group purchased all of the railcars of one of the Trusts for $121.1 million, resulting in the termination of the selling Trust and the Leasing Group's remaining future operating lease obligations to the selling Trust totaling $105.8 million. | |||||||||||||||||||||||||||||
These Leasing Group subsidiaries had total assets as of March 31, 2015 of $146.3 million, including cash of $51.0 million and railcars of $67.8 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 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Future operating lease obligations of Trusts’ railcars | $ | 22.5 | $ | 29.3 | $ | 29.2 | $ | 29.2 | $ | 28.8 | $ | 170.2 | $ | 309.2 | |||||||||||||||
Future contractual minimum rental revenues of Trusts’ railcars | $ | 39.6 | $ | 45.7 | $ | 36.7 | $ | 27.3 | $ | 18.3 | $ | 32.8 | $ | 200.4 | |||||||||||||||
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 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Future operating lease obligations | $ | 9.7 | $ | 12.8 | $ | 12.1 | $ | 12 | $ | 9.5 | $ | 28.7 | $ | 84.8 | |||||||||||||||
Future contractual minimum rental revenues | $ | 15.4 | $ | 18.6 | $ | 11 | $ | 6.6 | $ | 3.7 | $ | 5.9 | $ | 61.2 | |||||||||||||||
Operating lease obligations totaling $16.5 million are guaranteed by Trinity Industries, Inc. and certain subsidiaries. See Note 6 of the December 31, 2014 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, 2015 | |||||||||||||||||||
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 commodity hedges and interest rate swaps at March 31, 2015. See Note 11 Debt for a description of the Company's debt instruments. | |||||||||||||||||||
Interest rate hedges | |||||||||||||||||||
Included in accompanying balance sheet | |||||||||||||||||||
at March 31, 2015 | |||||||||||||||||||
Notional | Interest | Liability | AOCL – | Noncontrolling | |||||||||||||||
Amount | Rate(1) | loss/ | Interest | ||||||||||||||||
(income) | |||||||||||||||||||
(in millions, except %) | |||||||||||||||||||
Expired hedges: | |||||||||||||||||||
2006 secured railcar equipment notes | $ | 200 | 4.87 | % | $ | — | $ | (1.2 | ) | $ | — | ||||||||
Promissory notes | $ | 370 | 5.34 | % | $ | — | $ | 0.5 | $ | — | |||||||||
TRIP Holdings warehouse loan | $ | 788.5 | 3.6 | % | $ | — | $ | 9.5 | $ | 12.8 | |||||||||
Open hedges: | |||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | $ | 53.8 | 2.62 | % | $ | 2.2 | $ | 0.9 | $ | 1.3 | |||||||||
Promissory notes | $ | 364.2 | 4.13 | % | $ | 2.5 | $ | 1.6 | $ | — | |||||||||
(1) | Weighted average fixed interest rate | ||||||||||||||||||
Effect on interest expense - increase/(decrease) | |||||||||||||||||||
Three Months Ended | Expected effect during next twelve months(1) | ||||||||||||||||||
March 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
(in millions) | |||||||||||||||||||
Expired hedges: | |||||||||||||||||||
2006 secured railcar equipment notes | $ | (0.1 | ) | $ | (0.1 | ) | $ | (0.3 | ) | ||||||||||
Promissory notes | $ | 0.7 | $ | 0.8 | $ | 0.5 | |||||||||||||
TRIP Holdings warehouse loan | $ | 1.3 | $ | 1.3 | $ | 4.9 | |||||||||||||
Open hedges: | |||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | $ | 0.3 | $ | 0.4 | $ | 1.1 | |||||||||||||
Promissory notes | $ | 3.7 | $ | 3.9 | $ | 2.5 | |||||||||||||
(1) Based on the fair value of open hedges as of March 31, 2015 | |||||||||||||||||||
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 Accumulated Other Comprehensive Loss ("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 $4.9 million of additional interest expense expected to be recognized during the twelve months following March 31, 2015. Also in July 2011, TRIP Holdings’ wholly-owned subsidiary, TRIP Master Funding, entered into an interest rate swap derivative instrument, expiring in 2021, with a 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. 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 effect on operating income for these instruments was not significant. The amount recorded in the consolidated balance sheet as of March 31, 2015 for these instruments was a liability of $1.4 million. | |||||||||||||||||||
Foreign exchange hedge | |||||||||||||||||||
We may 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, 2015 for these instruments were not significant. These instruments are short term with quarterly maturities and no remaining balance in AOCL as of March 31, 2015. |
Property_Plant_and_Equipment
Property, Plant, and Equipment | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, 2015 and December 31, 2014. | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Manufacturing/Corporate: | ||||||||
Land | $ | 88.6 | $ | 81.4 | ||||
Buildings and improvements | 557.2 | 548.2 | ||||||
Machinery and other | 1,020.30 | 975.7 | ||||||
Construction in progress | 88.9 | 76.4 | ||||||
1,755.00 | 1,681.70 | |||||||
Less accumulated depreciation | (838.6 | ) | (820.7 | ) | ||||
916.4 | 861 | |||||||
Leasing: | ||||||||
Wholly-owned subsidiaries: | ||||||||
Machinery and other | 10.7 | 10.7 | ||||||
Equipment on lease | 3,428.20 | 3,189.60 | ||||||
3,438.90 | 3,200.30 | |||||||
Less accumulated depreciation | (605.6 | ) | (601.1 | ) | ||||
2,833.30 | 2,599.20 | |||||||
Partially-owned subsidiaries: | ||||||||
Equipment on lease | 2,260.60 | 2,261.20 | ||||||
Less accumulated depreciation | (277.2 | ) | (261.3 | ) | ||||
1,983.40 | 1,999.90 | |||||||
Net deferred profit on railcars sold to the Leasing Group | (584.2 | ) | (557.2 | ) | ||||
$ | 5,148.90 | $ | 4,902.90 | |||||
Goodwill
Goodwill | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Goodwill | Goodwill | |||||||
Goodwill by segment is as follows: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(as reported) | ||||||||
(in millions) | ||||||||
Rail Group | $ | 134.6 | $ | 134.6 | ||||
Construction Products Group | 128.3 | 128.3 | ||||||
Energy Equipment Group | 507 | 508.5 | ||||||
Railcar Leasing and Management Services Group | 1.8 | 1.8 | ||||||
$ | 771.7 | $ | 773.2 | |||||
Warranties
Warranties | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Warranties | Warranties | |||||||
The changes in the accruals for warranties for the three months ended March 31, 2015 and 2014 are as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Beginning balance | $ | 17.8 | $ | 14.7 | ||||
Warranty costs incurred | (1.7 | ) | (0.8 | ) | ||||
Warranty originations and revisions | 5.7 | 2.3 | ||||||
Warranty expirations | (1.4 | ) | (1.0 | ) | ||||
Ending balance | $ | 20.4 | $ | 15.2 | ||||
Debt
Debt | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||
Debt | Debt | |||||||||||||||||||||||
The following table summarizes the components of debt as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||
31-Mar-15 | December 31, | |||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Corporate – Recourse: | ||||||||||||||||||||||||
Revolving credit facility | $ | — | $ | — | ||||||||||||||||||||
Senior notes, net of unamortized discount of $0.4 and $0.4 | 399.6 | 399.6 | ||||||||||||||||||||||
Convertible subordinated notes, net of unamortized discount of $55.8 and $59.6 | 393.7 | 389.9 | ||||||||||||||||||||||
Other | 0.7 | 0.7 | ||||||||||||||||||||||
794 | 790.2 | |||||||||||||||||||||||
Leasing – Recourse: | ||||||||||||||||||||||||
Capital lease obligations | 38.3 | 39.1 | ||||||||||||||||||||||
Total recourse debt | 832.3 | 829.3 | ||||||||||||||||||||||
Leasing – Non-recourse: | ||||||||||||||||||||||||
Wholly-owned subsidiaries: | ||||||||||||||||||||||||
2006 secured railcar equipment notes | 218.6 | 223 | ||||||||||||||||||||||
Promissory notes | 341.3 | 363.9 | ||||||||||||||||||||||
2009 secured railcar equipment notes | 186.4 | 188.8 | ||||||||||||||||||||||
2010 secured railcar equipment notes | 307.7 | 311.5 | ||||||||||||||||||||||
TILC warehouse facility | 101.4 | 120.6 | ||||||||||||||||||||||
1,155.40 | 1,207.80 | |||||||||||||||||||||||
Partially-owned subsidiaries: | ||||||||||||||||||||||||
TRL 2012 secured railcar equipment notes (RIV 2013) | 466.1 | 472.2 | ||||||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | 1,032.10 | 1,043.70 | ||||||||||||||||||||||
1,498.20 | 1,515.90 | |||||||||||||||||||||||
Total non–recourse debt | 2,653.60 | 2,723.70 | ||||||||||||||||||||||
Total debt | $ | 3,485.90 | $ | 3,553.00 | ||||||||||||||||||||
We have a $425.0 million unsecured revolving credit facility that matures on October 20, 2016. As of March 31, 2015, we had letters of credit issued under our revolving credit facility in an aggregate principal amount of $88.6 million, leaving $336.4 million available for borrowing. Other than these letters of credit, there were no borrowings under our revolving credit facility as of March 31, 2015, or for the three month period then ended. Of the outstanding letters of credit as of March 31, 2015, a total of $87.2 million is expected to expire in 2015 and the remainder in 2016. 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. As of March 31, 2015, we were in compliance with all such financial covenants. Borrowings under the credit facility bear interest at Libor plus 1.50% or prime plus 0.50% and are guaranteed by certain 100%-owned subsidiaries of the Company. | ||||||||||||||||||||||||
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, 2015 and December 31, 2014, capital in excess of par value included $92.5 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, 2015 and 2014 is as follows: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Coupon rate interest | $ | 4.4 | $ | 4.4 | ||||||||||||||||||||
Amortized debt discount | 3.8 | 3.5 | ||||||||||||||||||||||
$ | 8.2 | $ | 7.9 | |||||||||||||||||||||
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 $25.16 per share as of March 31, 2015. The Convertible Subordinated Notes were subject to conversion as of April 1, 2015. Holders of the Convertible Subordinated Notes have the right to convert the notes until June 30, 2015. The Convertible Subordinated Notes may continue to be convertible after June 30, 2015, if certain conditions are satisfied during future measurement periods. 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 TILC warehouse loan facility, established to finance railcars owned by TILC, had $101.4 million in outstanding borrowings as of March 31, 2015. In April 2015, the facility was increased to $1 billion and extended through April 2018. Under the renewed facility, $898.6 million was unused as of the renewal date, of which $642.3 million was available based on the amount of warehouse-eligible, unpledged equipment. The warehouse loan facility 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 trust. 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 1.95% at March 31, 2015. Interest rate pricing remained unchanged under the renewed facility. Amounts outstanding at maturity, absent renewal, are payable under the renewed facility in April 2019. | ||||||||||||||||||||||||
Terms and conditions of other debt, including recourse and non-recourse provisions, are described in Note 11 of the December 31, 2014 Consolidated Financial Statements filed on Form 10-K.The remaining principal payments under existing debt agreements as of March 31, 2015, after considering the extension of the TILC Warehouse facility in April 2015, are as follows: | ||||||||||||||||||||||||
Remaining nine months of 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Recourse: | ||||||||||||||||||||||||
Corporate | $ | 0.2 | $ | 0.2 | $ | 0.3 | $ | — | $ | — | $ | 849.5 | ||||||||||||
Leasing – capital lease obligations (Note 6) | 2.5 | 3.5 | 3.7 | 28.6 | — | — | ||||||||||||||||||
Non-recourse – leasing (Note 6): | ||||||||||||||||||||||||
2006 secured railcar equipment notes | 14.1 | 21.8 | 24 | 25.3 | 28 | 105.4 | ||||||||||||||||||
Promissory notes | 18.9 | 322.4 | — | — | — | — | ||||||||||||||||||
2009 secured railcar equipment notes | 7.2 | 6.5 | 6.3 | 6.5 | 11.2 | 148.7 | ||||||||||||||||||
2010 secured railcar equipment notes | 11.5 | 14.9 | 13.7 | 10 | 7.6 | 250 | ||||||||||||||||||
TILC warehouse facility | 2.8 | 3.7 | 3.7 | 3.7 | 0.7 | — | ||||||||||||||||||
TRL 2012 secured railcar equipment notes | 17.1 | 22.3 | 22.9 | 23.1 | 22.2 | 358.5 | ||||||||||||||||||
(RIV 2013) | ||||||||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | 34.3 | 39.8 | 29.2 | 41.8 | 50.1 | 836.9 | ||||||||||||||||||
Facility termination payments - TILC warehouse facility | — | — | — | — | 86.8 | — | ||||||||||||||||||
Total principal payments | $ | 108.6 | $ | 435.1 | $ | 103.8 | $ | 139 | $ | 206.6 | $ | 2,549.00 | ||||||||||||
Other_Net
Other, Net | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Income and Expenses [Abstract] | ||||||||
Other, Net | Other, Net | |||||||
Other, net (income) expense consists of the following items: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Foreign currency exchange transactions | $ | (1.2 | ) | $ | 0.4 | |||
Gain (loss) on equity investments | 0.1 | (0.2 | ) | |||||
Other | (1.2 | ) | (0.3 | ) | ||||
Other, net | $ | (2.3 | ) | $ | (0.1 | ) |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, | ||||||||
2015 | 2014 | |||||||
Statutory rate | 35 | % | 35 | % | ||||
State taxes | 1.2 | 0.9 | ||||||
Domestic production activities deduction | (2.1 | ) | (2.2 | ) | ||||
Noncontrolling interest in partially-owned subsidiaries | (1.0 | ) | (1.2 | ) | ||||
Other, net | 0.4 | 0.1 | ||||||
Effective rate | 33.5 | % | 32.6 | % | ||||
Our effective tax rate reflects the Company's estimate for 2015 of its state income tax expense, the current tax benefit available for U.S. manufacturing activities, and 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”). During 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. The transfer pricing issues have been appealed, and we have requested they be addressed in the same MAP as the 2006-2008 cycle. At this time, we cannot determine when the 2006-2008 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. In addition, one of our Mexican subsidiaries is under examination for its 2011 tax year. The remaining entities are generally open for their 2009 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 multiple foreign jurisdictions 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, 2015 and 2014 was as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Beginning balance | $ | 62.3 | $ | 55 | ||||
Additions for tax positions related to the current year | 1.3 | 1.2 | ||||||
Reductions for tax positions of prior years | (0.1 | ) | (0.1 | ) | ||||
Settlements | (0.2 | ) | — | |||||
Ending balance | $ | 63.3 | $ | 56.1 | ||||
Additions for tax positions related to the current year in the amounts of $1.3 million and $1.2 million recorded in the three months ended March 31, 2015 and 2014, 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 reductions in tax positions of prior years of $0.1 million and $0.1 million for the three months ended March 31, 2015 and 2014, respectively, were primarily related to changes in state taxes. The total amount of unrecognized tax benefits including interest and penalties at March 31, 2015 and 2014, that would affect the Company’s overall effective tax rate if recognized was $15.1 million and $13.8 million, respectively. | ||||||||
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, 2015 and December 31, 2014 was $11.8 million and $11.6 million, respectively. Income tax expense for the three months ended March 31, 2015 and March 31, 2014, included an increase in income tax expense of $0.2 million and $0.1 million in interest expense and penalties, respectively, related to uncertain tax positions. |
Employee_Retirement_Plans
Employee Retirement Plans | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Expense Components | ||||||||
Defined benefit: | ||||||||
Service cost | $ | 0.1 | $ | 0.1 | ||||
Interest | 5 | 5 | ||||||
Expected return on plan assets | (7.6 | ) | (7.7 | ) | ||||
Amortization of actuarial loss | 1.3 | 0.3 | ||||||
(1.2 | ) | (2.3 | ) | |||||
Profit sharing | 5.3 | 3.7 | ||||||
Multiemployer plan | 0.6 | — | ||||||
Net retirement cost | $ | 4.7 | $ | 1.4 | ||||
Trinity contributed $3.4 million and $4.1 million to the Company's defined benefit pension plans for the three months ended March 31, 2015 and 2014, respectively. Total contributions to the Company's defined benefit pension plans in 2015 are expected to be approximately $19.7 million. The Company participates in a multiemployer defined benefit plan under the terms of a collective-bargaining agreement that covers certain union-represented employees. The Company contributed $0.7 million to the multiemployer plan for the three months ended March 31, 2015. Total contributions to this plan for 2015 are expected to be approximately $2.4 million. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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, 2015 are as follows: | ||||||||||||||||
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, 2014 | $ | (18.5 | ) | $ | (6.6 | ) | $ | (86.8 | ) | $ | (111.9 | ) | ||||
Other comprehensive loss, net of tax, before reclassifications | (3.8 | ) | (0.3 | ) | — | (4.1 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $2.1, $0.5 and $2.6 | — | 3.8 | 0.8 | 4.6 | ||||||||||||
Less: noncontrolling interest | — | (0.6 | ) | — | (0.6 | ) | ||||||||||
Other comprehensive income (loss) | (3.8 | ) | 2.9 | 0.8 | (0.1 | ) | ||||||||||
Balances at March 31, 2015 | $ | (22.3 | ) | $ | (3.7 | ) | $ | (86.0 | ) | $ | (112.0 | ) | ||||
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 statements of operations. Approximately $1.1 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 statements of operations for the three months ended March 31, 2015. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation |
Stock-based compensation totaled approximately $16.4 million and $10.9 million for the three months ended March 31, 2015 and 2014, respectively. |
Earnings_Per_Common_Share
Earnings Per Common Share | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
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. Total weighted average restricted shares and antidilutive stock options were 6.9 million shares and 7.5 million shares for the three months ended March 31, 2015 and March 31, 2014, respectively. | ||||||||||||||||||||||
The computation of basic and diluted net income attributable to Trinity Industries, Inc. follows. | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | |||||||||||||||||||||
Income | Average | EPS | Income | Average | EPS | |||||||||||||||||
(Loss) | Shares | (Loss) | Shares | |||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||
Net income attributable to Trinity Industries, Inc. | $ | 180.2 | $ | 226.4 | ||||||||||||||||||
Unvested restricted share participation | (5.7 | ) | (7.8 | ) | ||||||||||||||||||
Net income attributable to Trinity Industries, Inc. – basic | 174.5 | 151.2 | $ | 1.15 | 218.6 | 150.2 | $ | 1.46 | ||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||
Stock options | — | — | — | 0.1 | ||||||||||||||||||
Convertible subordinated notes | 0.1 | 3.1 | 0.2 | 3.7 | ||||||||||||||||||
Net income attributable to Trinity Industries, Inc. – diluted | $ | 174.6 | 154.3 | $ | 1.13 | $ | 218.8 | 154 | $ | 1.42 | ||||||||||||
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies |
Highway products litigation | |
Federal False Claims Act case | |
We previously reported the filing of a False Claims Act (“Act”) complaint in the United States District Court for the Eastern District of Texas, Marshall Division (“District Court”) styled Joshua Harman, on behalf of the United States of America, Plaintiff/Relator v. Trinity Industries, Inc., Defendant, Case 2:12-cv-00089-JRG (E.D. Tex.). In this case, the relator, Mr. Joshua Harman alleged the Company knowingly presented or caused to be presented a false or fraudulent claim, record or statement to purchasers of the Company's ET-Plus® System, a highway guardrail end-terminal (“ET Plus”), in order for such purchasers to obtain Federal-aid reimbursement for payments made on such purchases. | |
A trial in this matter commenced in July 2014, but ended in a mistrial declared by the District Court on its own volition. On October 20, 2014 a retrial of this case concluded with a jury verdict stating that the Company and its subsidiary, Trinity Highway Products, LLC, “knowingly made, used or caused to be made or used, a false record or statement material to a false or fraudulent claim," awarding $175.0 million in damages based on such finding. The jury's damages award is automatically trebled under the Act to $525.0 million. Additionally, the District Court is required to impose civil penalties for each violation of the Act (these penalties are not automatically trebled). The District Court has the discretion to establish the civil penalty amount between $5,500 and $11,000 per violation. In this regard, Mr. Harman contended during trial that each invoice submitted to purchasers of the ET Plus certified that the product was accepted by the Federal Highway Administration ("FHWA") and was therefore eligible for Federal-aid reimbursement. Based on Mr. Harman’s calculations, the range of possible civil penalties is $5,500 (if the District Court determines there has been a single violation) to $184.0 million (if the District Court determines that each invoice for the product was a violation). | |
The District Court has not yet entered a final judgment or determined a civil penalty amount. While the Company believes the District Court does not have the evidence required under the law to quantify civil penalties, the total range of loss in this case, based on the jury’s verdict and Mr. Harman’s calculations for civil penalties, is $525.0 million to $709.0 million, exclusive of attorney's fees, costs, and interest. | |
The Company maintains that Mr. Harman’s allegations are without merit. The Company has filed multiple post-verdict motions, including a motion for the District Court to enter judgment in favor of the Company. However, if the Court enters judgment based on the jury’s verdict, the Company intends to file the necessary motions to perfect its right to appeal to the United States Court of Appeals for the Fifth Circuit (“Fifth Circuit”). Any post-judgment motions and appellate review will result in certain legal expenses, including potential costs associated with posting a bond upon the District Court’s entry of a judgment on the jury’s verdict. The face amount of such a bond could equal the amount of the final judgment plus twenty (20) percent. The Company has confidence that such a bond will be issued if required. | |
Texas A&M Transportation Institute (“TTI”), a member of The Texas A&M University System, designed the technology employed in the ET Plus. The Texas A&M University System is the owner of patents issued by the U.S. Patent Office that cover the ET Plus. Trinity Highway Products manufactures and markets the ET Plus pursuant to an exclusive license granted by The Texas A&M University System. Trinity Highway Products contracted with TTI to conduct crash testing of the ET Plus to demonstrate compliance with the required standards set out in National Cooperative Highway Research Program Report 350 (“Report 350”). In addition, TTI prepared and provided to Trinity Highway Products the test reports on the performance of the ET Plus. These reports were reviewed by the FHWA in their acceptance of the product for use on the national highway system and their determination of the product’s eligibility for Federal-aid reimbursement. In a memorandum dated June 17, 2014, the FHWA confirmed that “The Trinity ET Plus with 4-inch guide channels became eligible for Federal-aid reimbursement under FHWA letter CC-94 on September 2, 2005. In addition, the device is eligible for reimbursement under FHWA letters CC-94A and CC-120.” In this memorandum the FHWA confirmed that the reimbursement eligibility applies at guardrail heights from 27 ¾" to 31". The memorandum goes on to state that an “unbroken chain of eligibility for Federal-aid reimbursement has existed since September 2, 2005 and the ET Plus continues to be eligible today.” | |
Preceding the retrial in this matter, the Company filed a Petition for Writ of Mandamus with the Fifth Circuit based, in part, on the District Court’s failure to apply precedential case law. The Fifth Circuit denied this Petition, but expressed concern regarding the District Court’s failure to issue a reasoned ruling rejecting the Company’s prior motions for judgment as a matter of law. The Fifth Circuit also stated that the FHWA’s authoritative memorandum of June 17, 2014 appears to compel the conclusion that the FHWA, after due consideration of all the facts, found the ET Plus sufficiently compliant with federal safety standards and therefore fully eligible, in the past, present and future, for Federal-aid reimbursement claims. Additionally, the Fifth Circuit noted that a strong argument could be made that the Company’s actions were neither material nor were any false claims based on false certifications presented to the government. Based on the Fifth Circuit’s remarks, the Company re-urged its motions with the District Court for judgment as a matter of law, which the District Court denied during the retrial. We believe this reinforces our prospects for a successful outcome. | |
Pending entry of a final judgment and completion of the Company’s post-trial and appellate activities in this matter, we currently do not believe that a loss is probable, therefore no accrual has been included in the accompanying consolidated financial statements. | |
Revenues from sales of the ET Plus in the United States, included in the Construction Products Group, totaled approximately $35.1 million and $46.0 million for the years ended December 31, 2014 and 2013, respectively, and 0.6% and 1.1% of the Company’s consolidated revenues, respectively, for those years. | |
Crash testing and FHWA assessments | |
Following the October 20, 2014 jury verdict, the FHWA requested that the Company conduct eight separate crash tests pursuant to crash test criteria required in Report 350. The FHWA-requested tests were conducted in December 2014 and January 2015 at Southwest Research Institute, an FHWA-approved and independent research facility. | |
On February 6, 2015, the FHWA reported that the ET Plus passed the first four tests conducted at the 27 ¾" guardrail installation height. The vast majority of ET Plus systems are installed on the roadways in the U.S. and Canada at the 27 ¾" guardrail height. On March 13, 2015, the FWHA reported that the ET Plus passed the second four crash tests conducted at a 31" guardrail installation height. These eight test results validate Trinity Highway Products' long standing position that when installed, maintained and impacted within the Report 350 standards, the ET Plus performs to Report 350 criteria at both heights. On March 11, 2015, the FHWA and the American Association of State Highway and Transportation Officials ("AASHTO") released the findings of a joint task force which evaluated field measurement data collected by FHWA engineers from more than 1,000 4-inch ET Plus devices installed on roadways throughout the country. The FHWA-AASHTO joint task force concluded there is no evidence to suggest that there are multiple versions of the 4-inch ET-Plus on the nation's roadways. This task force also concluded that the ET Plus end terminals crash tested at Southwest Research Institute between December 2014 and January 2015 were representative of the devices installed across the country. | |
A second FHWA-AASHTO joint task force is doing further evaluation of the ET Plus. The FHWA has reported that this evaluation is expected to be completed early this summer. When the findings of this second task force are released, the Company will perform a thorough analysis regarding the resumption of any shipments of the ET Plus to customers. | |
State, county, and municipal actions | |
Trinity is aware of 41 states that have removed the ET Plus from their respective qualified products list. The state of Virginia, in addition to evaluating a potential recall of all ET Plus products installed on Virginia roadways, has joined Mr. Harman's Virginia state action alleging the same false claims as were alleged in the false claims act case pending in the Eastern District of Texas. Commonwealth of Virginia ex rel. Joshua M. Harman v. Trinity Industries, Inc. and Trinity Highway Products, LLC Case No. CL13-698 (Circuit Court, Richmond, Virginia). Other states could take similar or different actions regarding recall, and could be considering similar state false claims or other litigation against the Company. While the financial impacts of such actions are currently unknown, they could be material. | |
The Company is aware of three class action lawsuits involving claims pertaining to the ET Plus. The Company has been served in a lawsuit filed November 6, 2014, titled Hamilton County, Illinois and Macon County, Illinois, Individually and on behalf of all Other Counties in the State of Illinois vs. Trinity Industries, Inc. and Trinity Highway Products, LLC Case 3:14-cv-1320 (Southern District of Illinois). This complaint was later amended to substitute St. Clair County, Illinois for Hamilton County as a lead plaintiff. The case is being brought by plaintiffs for and on behalf of themselves and the other 101 counties of the State of Illinois. The plaintiffs allege that the Company and Trinity Highway Products made a series of un-tested modifications to the ET Plus and falsely certified that the modified ET Plus was acceptable for use on the nation’s highways based on federal testing standards and approval for Federal-aid reimbursement. The plaintiffs also allege breach of express and implied warranties, violation of the Illinois Uniform Deceptive Trade Practices Act and unjust enrichment, for which plaintiffs seek actual damages related to purchases of the ET Plus, compensatory damages for establishing a common fund for class members, punitive damages, and injunctive relief. | |
The Company has also been served in a lawsuit filed February 11, 2015 titled The Corporation of the City of Stratford and Trinity Industries, Inc., Trinity Highway Products, LLC, and Trinity Industries Canada, Inc. Case No. 15-2622 CP, pending in Ontario Superior Court of Justice. The class in this matter has been identified as persons in Canada who purchased and/or used an ET Plus guardrail end terminal. The plaintiff alleges that Trinity Industries, Inc., Trinity Highway Products, LLC, and Trinity Industries Canada, Inc., failed to warn of dangers associated with undisclosed modifications to the ET Plus guardrail end terminals, breached an implied warranty, breached a duty of care, and were negligent. The plaintiff is seeking $400.0 million in compensatory damages and $100.0 million in punitive damages. Alternatively, the plaintiff claims the right to an accounting or other restitution remedy for disgorgement of the revenues generated by the sale of the modified ET Plus in Canada. | |
The Company has been served in a lawsuit filed February 25, 2015, titled La Crosse County, individually and on behalf of all others similarly situated vs. Trinity Industries, Inc. and Trinity Highway Products, LLC Case 15-cv-117 (Western District of Wisconsin). The case is being brought by the plaintiffs for and on behalf of themselves and all other purchasers of allegedly defective ET Pluses, including proposed statewide and nationwide classes. The plaintiff alleges that the Company and Trinity Highway Products made a series of un-tested modifications to the ET Plus and falsely certified that the modified ET Plus was acceptable for use on the nation’s highways based on federal testing standards and approval for Federal-aid reimbursement. The plaintiff also alleges strict liability design defect, breach of contract, breach of express and implied warranties, violation of the Wisconsin Uniform Deceptive Trade Practices Act, and unjust enrichment. The plaintiff seeks a declaratory judgment that the ET Plus is defective, actual damages related to class-wide purchases of the ET Plus, punitive damages, statutory penalties, interest, and injunctive relief. | |
The Company believes each of these class action lawsuits is without merit and intends to vigorously defend all allegations. While the financial impacts of these three actions are currently unknown, they could be material. | |
Product liability cases; law firm investigations | |
The Company is currently defending a number of product liability lawsuits in several different states that are alleged to involve the ET Plus. These cases are diverse in light of the randomness of collisions in general and the fact that each accident involving roadside devices such as an ET Plus, or any other fixed object along the highway has its own unique facts and circumstances. Report 350 recognizes that performance of even the most carefully researched roadside device is subject to physical laws and the crash worthiness of vehicles. The Company expects the jury verdict, coupled with the media attention the verdict has generated, will prompt the plaintiff’s bar to seek out vehicle accident victims involved in collisions with an ET Plus as potential clients, which may result in additional product liability lawsuits being filed against the Company. The Company carries general liability insurance to mitigate the impact of adverse verdict exposures in these product liability cases. | |
The Company is aware that several law firms are investigating whether the Company and certain of its officers and directors breached their fiduciary duties relating to modifications made to the ET Plus and/or violated federal securities laws. We believe these investigations will be concluded without substantive results. However, the Company will incur legal expenses and related costs in responding to these investigations. | |
Train derailment | |
As previously reported, the Company was 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 related to the July 2013 crude oil unit train derailment in Lac-Mégantic, Quebec. 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. As of June 18, 2014, the petitioners in the Quebec litigation have voluntarily desisted with their claims against the Company resulting in the dismissal of the Company without prejudice; however the partially-owned subsidiary remains as a respondent in the litigation. 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 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. The Company’s tank car manufacturing subsidiary manufactured 35 of the 72 tank railcars involved in the derailment. 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. Certain of the plaintiffs in these transferred cases have appealed to the U.S. Court of Appeals for the First Circuit seeking to overturn the decision to transfer. This appeal has resulted in a stay of all proceedings in the transferred cases pending resolution of the appeal. 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. The Company's loss accrual for this matter, net of expected third party recoveries, is not significant. The Company has engaged in settlement negotiations to resolve the entirety of the above referenced derailment litigation within the limits of available insurance and subject to court approval in the context of the Canadian and U.S. bankruptcy proceedings of the involved railroad. | |
Other matters | |
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 $3.5 million to $23.7 million. This range excludes any amount related to the highway products litigation matters described above. At March 31, 2015, total accruals of $25.8 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 $5.2 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. |
Financial_Statements_for_Guara
Financial Statements for Guarantors of the Senior Notes | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Financial Statements for Guarantors of the Senior Notes [Abstract] | ||||||||||||||||||||
Financial Statements for Guarantors of the Senior Notes | Financial Statements for Guarantors of the Senior Notes | |||||||||||||||||||
The Company’s Senior Notes are fully and unconditionally and jointly and severally guaranteed by certain of Trinity’s 100%-owned subsidiaries: Trinity Construction Materials Inc., Trinity Highway Products, LLC, Trinity Industries Leasing Company, Trinity Marine Products, Inc., Trinity North American Freight Car, Inc., Trinity Parts & Components, LLC, Trinity Rail Group, LLC, Trinity Structural Towers, Inc., Trinity Tank Car, Inc., and, effective March 24, 2015, Trinity Meyer Utility Structures LLC (“Combined Guarantor Subsidiaries”). Amounts previously reported have been restated to include the Combined Guarantor Subsidiaries as of March 31, 2015. See Note 11 Debt. The Senior Notes indenture agreement includes customary provisions for the release of the guarantees by the Combined Guarantor Subsidiaries upon the occurrence of certain allowed events including the release of one or more of the Combined Guarantor Subsidiaries as guarantor under the Company's revolving credit facility. The Senior Notes are not guaranteed by any remaining 100%-owned subsidiaries of the Company or partially-owned subsidiaries (“Combined Non-Guarantor Subsidiaries”). | ||||||||||||||||||||
As of March 31, 2015, assets held by the Combined Non-Guarantor Subsidiaries included $174.0 million of restricted cash that was not available for distribution to Trinity Industries, Inc. (“Parent”), $3,856.6 million of equipment securing certain non-recourse debt, $71.3 million of equipment securing certain lease obligations held by the Combined Non-Guarantor Subsidiaries, and $370.1 million of assets located in foreign locations. As of December 31, 2014, assets held by the Combined Non-Guarantor Subsidiaries included $194.4 million of restricted cash that was not available for distribution to the Parent, $3,936.8 million of equipment securing certain non-recourse debt, $87.5 million of equipment securing certain lease obligations held by the Combined Non-Guarantor Subsidiaries, and $395.5 million of assets located in foreign locations. | ||||||||||||||||||||
Statement of Operations and Comprehensive Income | ||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Revenues | $ | — | $ | 1,300.60 | $ | 559.6 | $ | (233.5 | ) | $ | 1,626.70 | |||||||||
Cost of revenues | (0.8 | ) | 1,038.70 | 410.5 | (237.3 | ) | 1,211.10 | |||||||||||||
Selling, engineering, and administrative expenses | 25.4 | 43.8 | 29.1 | — | 98.3 | |||||||||||||||
Gains/(losses) on disposition of property, plant, and equipment | 0.2 | (0.1 | ) | 15.7 | — | 15.8 | ||||||||||||||
24.4 | 1,082.60 | 423.9 | (237.3 | ) | 1,293.60 | |||||||||||||||
Operating profit (loss) | (24.4 | ) | 218 | 135.7 | 3.8 | 333.1 | ||||||||||||||
Other (income) expense | 4.3 | 7.7 | 36.7 | — | 48.7 | |||||||||||||||
Equity in earnings of subsidiaries, net of taxes | 196.8 | 68.3 | — | (265.1 | ) | — | ||||||||||||||
Income (loss) before income taxes | 168.1 | 278.6 | 99 | (261.3 | ) | 284.4 | ||||||||||||||
Provision (benefit) for income taxes | (12.1 | ) | 96.9 | 9.3 | 1.3 | 95.4 | ||||||||||||||
Net income (loss) | 180.2 | 181.7 | 89.7 | (262.6 | ) | 189 | ||||||||||||||
Net income (loss) attributable to noncontrolling interest | — | — | — | 8.8 | 8.8 | |||||||||||||||
Net income (loss) attributable to controlling interest | $ | 180.2 | $ | 181.7 | $ | 89.7 | $ | (271.4 | ) | $ | 180.2 | |||||||||
Net income (loss) | $ | 180.2 | $ | 181.7 | $ | 89.7 | $ | (262.6 | ) | $ | 189 | |||||||||
Other comprehensive income (loss) | 1.2 | (0.5 | ) | (0.2 | ) | — | 0.5 | |||||||||||||
Comprehensive income | $ | 181.4 | $ | 181.2 | $ | 89.5 | $ | (262.6 | ) | $ | 189.5 | |||||||||
Statement of Operations and Comprehensive Income | ||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Revenues | $ | — | $ | 1,139.60 | $ | 506.8 | $ | (185.9 | ) | $ | 1,460.50 | |||||||||
Cost of revenues | 0.4 | 856.5 | 400.8 | (183.7 | ) | 1,074.00 | ||||||||||||||
Selling, engineering, and administrative expenses | 22 | 31.4 | 30.2 | — | 83.6 | |||||||||||||||
Gains/(losses) on disposition of property, plant, and equipment | (0.3 | ) | 34.3 | 54.4 | — | 88.4 | ||||||||||||||
22.7 | 853.6 | 376.6 | (183.7 | ) | 1,069.20 | |||||||||||||||
Operating profit (loss) | (22.7 | ) | 286 | 130.2 | (2.2 | ) | 391.3 | |||||||||||||
Other (income) expense | 3.8 | 5.6 | 36.4 | — | 45.8 | |||||||||||||||
Equity in earnings of subsidiaries, net of taxes | 252.4 | 68.1 | — | (320.5 | ) | — | ||||||||||||||
Income (loss) before income taxes | 225.9 | 348.5 | 93.8 | (322.7 | ) | 345.5 | ||||||||||||||
Provision (benefit) for income taxes | (0.5 | ) | 106.2 | 8.8 | (2.0 | ) | 112.5 | |||||||||||||
Net income (loss) | 226.4 | 242.3 | 85 | (320.7 | ) | 233 | ||||||||||||||
Net income (loss) attributable to noncontrolling interest | — | — | — | 6.6 | 6.6 | |||||||||||||||
Net income (loss) attributable to controlling interest | $ | 226.4 | $ | 242.3 | $ | 85 | $ | (327.3 | ) | $ | 226.4 | |||||||||
Net income (loss) | $ | 226.4 | $ | 242.3 | $ | 85 | $ | (320.7 | ) | $ | 233 | |||||||||
Other comprehensive income (loss) | 0.6 | — | 2.7 | — | 3.3 | |||||||||||||||
Comprehensive income | $ | 227 | $ | 242.3 | $ | 87.7 | $ | (320.7 | ) | $ | 236.3 | |||||||||
Balance Sheet | ||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 548.5 | $ | 2.4 | $ | 76.9 | $ | (37.1 | ) | $ | 590.7 | |||||||||
Short-term marketable securities | 100 | — | — | — | 100 | |||||||||||||||
Receivables, net of allowance | — | 377.7 | 168.2 | (1.0 | ) | 544.9 | ||||||||||||||
Income tax receivable | — | — | — | — | ||||||||||||||||
Inventory | — | 837.1 | 228.2 | (20.0 | ) | 1,045.30 | ||||||||||||||
Property, plant, and equipment, net | 29.5 | 1,126.10 | 4,541.90 | (548.6 | ) | 5,148.90 | ||||||||||||||
Investments in and advances to subsidiaries | 4,657.70 | 3,262.30 | — | (7,920.0 | ) | — | ||||||||||||||
Restricted cash | — | — | 174 | 37.1 | 211.1 | |||||||||||||||
Goodwill and other assets | 169 | 618.5 | 322.5 | (28.5 | ) | 1,081.50 | ||||||||||||||
$ | 5,504.70 | $ | 6,224.10 | $ | 5,511.70 | $ | (8,518.1 | ) | $ | 8,722.40 | ||||||||||
Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 19.1 | $ | 168.1 | $ | 114 | $ | (1.6 | ) | $ | 299.6 | |||||||||
Accrued liabilities | 224.7 | 238.7 | 148.9 | — | 612.3 | |||||||||||||||
Debt | 793.3 | 38.3 | 2,654.30 | — | 3,485.90 | |||||||||||||||
Deferred income | — | 27.2 | 1.9 | — | 29.1 | |||||||||||||||
Deferred income taxes | — | 632.8 | 9.6 | (11.8 | ) | 630.6 | ||||||||||||||
Advances from subsidiaries | 818.8 | — | — | (818.8 | ) | — | ||||||||||||||
Other liabilities | 97.4 | 13 | 3.1 | — | 113.5 | |||||||||||||||
Total stockholders' equity | 3,551.40 | 5,106.00 | 2,579.90 | (7,685.9 | ) | 3,551.40 | ||||||||||||||
$ | 5,504.70 | $ | 6,224.10 | $ | 5,511.70 | $ | (8,518.1 | ) | $ | 8,722.40 | ||||||||||
Balance Sheet | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 827.7 | $ | 11.1 | $ | 89.4 | $ | (40.3 | ) | $ | 887.9 | |||||||||
Short-term marketable securities | 75 | — | — | — | 75 | |||||||||||||||
Receivables, net of allowance | — | 226.5 | 179.2 | (0.4 | ) | 405.3 | ||||||||||||||
Income tax receivable | 58.6 | — | — | — | 58.6 | |||||||||||||||
Inventory | — | 878.3 | 208.1 | (18.0 | ) | 1,068.40 | ||||||||||||||
Property, plant, and equipment, net | 29.3 | 843.8 | 4,594.10 | (564.3 | ) | 4,902.90 | ||||||||||||||
Investments in and advances to subsidiaries | 4,431.10 | 3,435.20 | 3 | (7,869.3 | ) | — | ||||||||||||||
Restricted cash | — | — | 194.4 | 40.3 | 234.7 | |||||||||||||||
Goodwill and other assets | 180.6 | 610.9 | 339.7 | (30.2 | ) | 1,101.00 | ||||||||||||||
$ | 5,602.30 | $ | 6,005.80 | $ | 5,607.90 | $ | (8,482.2 | ) | $ | 8,733.80 | ||||||||||
Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 15 | $ | 174.4 | $ | 106.6 | $ | (0.6 | ) | $ | 295.4 | |||||||||
Accrued liabilities | 235.8 | 300.1 | 173.7 | — | 709.6 | |||||||||||||||
Debt | 789.5 | 39.1 | 2,724.40 | — | 3,553.00 | |||||||||||||||
Deferred income | — | 34.5 | 1.9 | — | 36.4 | |||||||||||||||
Deferred income taxes | — | 636.9 | 9.3 | (13.6 | ) | 632.6 | ||||||||||||||
Advances from subsidiaries | 1,072.00 | — | — | (1,072.0 | ) | — | ||||||||||||||
Other liabilities | 92.6 | 13.7 | 3.1 | — | 109.4 | |||||||||||||||
Total stockholders' equity | 3,397.40 | 4,807.10 | 2,588.90 | (7,396.0 | ) | 3,397.40 | ||||||||||||||
$ | 5,602.30 | $ | 6,005.80 | $ | 5,607.90 | $ | (8,482.2 | ) | $ | 8,733.80 | ||||||||||
Statement of Cash Flows | ||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Operating activities: | ||||||||||||||||||||
Net income | $ | 180.2 | $ | 181.7 | $ | 89.7 | $ | (262.6 | ) | $ | 189 | |||||||||
Equity in earnings of subsidiaries, net of taxes | (196.8 | ) | (68.3 | ) | — | 265.1 | — | |||||||||||||
Other | 81.8 | (181.7 | ) | 35.7 | (15.4 | ) | (79.6 | ) | ||||||||||||
Net cash provided (required) by operating activities | 65.2 | (68.3 | ) | 125.4 | (12.9 | ) | 109.4 | |||||||||||||
Investing activities: | ||||||||||||||||||||
(Increase) decrease in short-term marketable securities | (25.0 | ) | — | — | — | (25.0 | ) | |||||||||||||
Proceeds from railcar lease fleet sales | — | 15.7 | 78.2 | (15.4 | ) | 78.5 | ||||||||||||||
Proceeds from disposition of property, plant, equipment, and other assets | — | — | 1.6 | — | 1.6 | |||||||||||||||
Capital expenditures – leasing | — | (290.0 | ) | (8.8 | ) | 15.4 | (283.4 | ) | ||||||||||||
Capital expenditures – manufacturing and other | (1.8 | ) | (11.5 | ) | (40.2 | ) | — | (53.5 | ) | |||||||||||
Acquisitions, net of cash acquired | — | — | (45.5 | ) | — | (45.5 | ) | |||||||||||||
(Increase) decrease in investment in partially-owned subsidiaries | — | 7.2 | — | (7.2 | ) | — | ||||||||||||||
Other | — | 0.7 | 3.5 | — | 4.2 | |||||||||||||||
Net cash provided (required) by investing activities | (26.8 | ) | (277.9 | ) | (11.2 | ) | (7.2 | ) | (323.1 | ) | ||||||||||
Financing activities: | ||||||||||||||||||||
Proceeds from issuance of common stock, net | — | — | — | — | — | |||||||||||||||
Excess tax benefits from stock-based compensation | 0.4 | — | — | — | 0.4 | |||||||||||||||
Payments to retire debt | — | (0.8 | ) | (70.1 | ) | — | (70.9 | ) | ||||||||||||
(Increase) decrease in restricted cash | — | — | 29.8 | 3.2 | 33 | |||||||||||||||
Shares repurchased | (18.0 | ) | — | — | — | (18.0 | ) | |||||||||||||
Dividends paid to common shareholders | (15.6 | ) | — | — | — | (15.6 | ) | |||||||||||||
Purchase of shares to satisfy employee tax on vested stock | (0.4 | ) | — | — | — | (0.4 | ) | |||||||||||||
Distributions to noncontrolling interest | — | — | (11.3 | ) | — | (11.3 | ) | |||||||||||||
Distributions to controlling interest in partially-owned subsidiaries | — | — | (7.2 | ) | 7.2 | — | ||||||||||||||
Change in intercompany financing between entities | (284.0 | ) | 339 | (67.9 | ) | 12.9 | — | |||||||||||||
Other | — | (0.7 | ) | — | — | (0.7 | ) | |||||||||||||
Net cash provided (required) by financing activities | (317.6 | ) | 337.5 | (126.7 | ) | 23.3 | (83.5 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (279.2 | ) | (8.7 | ) | (12.5 | ) | 3.2 | (297.2 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 827.7 | 11.1 | 89.4 | (40.3 | ) | 887.9 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 548.5 | $ | 2.4 | $ | 76.9 | $ | (37.1 | ) | $ | 590.7 | |||||||||
Statement of Cash Flows | ||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Operating activities: | ||||||||||||||||||||
Net income | $ | 226.4 | $ | 242.3 | $ | 85 | $ | (320.7 | ) | $ | 233 | |||||||||
Equity in earnings of subsidiaries, net of taxes | (252.4 | ) | (68.1 | ) | — | 320.5 | — | |||||||||||||
Other | 86 | (89.0 | ) | (22.1 | ) | (2.6 | ) | (27.7 | ) | |||||||||||
Net cash provided (required) by operating activities | 60 | 85.2 | 62.9 | (2.8 | ) | 205.3 | ||||||||||||||
Investing activities: | ||||||||||||||||||||
(Increase) decrease in short-term marketable securities | (106.7 | ) | — | — | — | (106.7 | ) | |||||||||||||
Proceeds from railcar lease fleet sales | — | 146 | 109.7 | (31.4 | ) | 224.3 | ||||||||||||||
Proceeds from disposition of property, plant, equipment, and other assets | 0.4 | — | 16.8 | — | 17.2 | |||||||||||||||
Capital expenditures – leasing | — | 1.9 | (32.9 | ) | 31.4 | 0.4 | ||||||||||||||
Capital expenditures – manufacturing and other | (3.3 | ) | (7.6 | ) | (38.2 | ) | — | (49.1 | ) | |||||||||||
Acquisitions, net of cash acquired | — | — | (112.6 | ) | — | (112.6 | ) | |||||||||||||
(Increase) decrease in investment in partially-owned subsidiaries | — | 3.3 | — | (3.3 | ) | — | ||||||||||||||
Other | 1 | (1.0 | ) | 2.9 | — | 2.9 | ||||||||||||||
Net cash provided (required) by investing activities | (108.6 | ) | 142.6 | (54.3 | ) | (3.3 | ) | (23.6 | ) | |||||||||||
Financing activities: | ||||||||||||||||||||
Proceeds from issuance of common stock, net | 0.3 | — | — | — | 0.3 | |||||||||||||||
Excess tax benefits from stock-based compensation | 0.4 | — | — | — | 0.4 | |||||||||||||||
Payments to retire debt | — | (0.8 | ) | (52.3 | ) | — | (53.1 | ) | ||||||||||||
(Increase) decrease in restricted cash | — | — | 6.7 | (2.4 | ) | 4.3 | ||||||||||||||
Shares repurchased | (12.5 | ) | — | — | — | (12.5 | ) | |||||||||||||
Dividends paid to common shareholders | (11.6 | ) | — | — | — | (11.6 | ) | |||||||||||||
Purchase of shares to satisfy employee tax on vested stock | (0.1 | ) | — | — | — | (0.1 | ) | |||||||||||||
Distributions to noncontrolling interest | — | — | (5.4 | ) | — | (5.4 | ) | |||||||||||||
Distributions to controlling interest in partially-owned subsidiaries | — | — | (3.3 | ) | 3.3 | — | ||||||||||||||
Change in intercompany financing between entities | 173.4 | (228.1 | ) | 51.9 | 2.8 | — | ||||||||||||||
Other | — | (0.3 | ) | — | — | (0.3 | ) | |||||||||||||
Net cash provided (required) by financing activities | 149.9 | (229.2 | ) | (2.4 | ) | 3.7 | (78.0 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 101.3 | (1.4 | ) | 6.2 | (2.4 | ) | 103.7 | |||||||||||||
Cash and cash equivalents at beginning of period | 409.8 | 2.1 | 44 | (27.4 | ) | 428.5 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 511.1 | $ | 0.7 | $ | 50.2 | $ | (29.8 | ) | $ | 532.2 | |||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
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 a 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, 2015, and the results of operations and cash flows for the three months ended March 31, 2015 and 2014, 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, 2015 may not be indicative of expected results of operations for the year ending December 31, 2015. 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, 2014. | |
Stockholders' Equity | Stockholders' Equity |
On May 5, 2014, the Company's Board of Directors authorized a 2-for-1 stock split on its common shares in the form of a 100% stock dividend. The additional shares were distributed on June 19, 2014, to shareholders of record at the close of business on June 5, 2014. All share and per share information, including dividends, has been retroactively adjusted to reflect the 2-for-1 stock split. | |
In March 2014, the Company’s Board of Directors authorized a $250 million share repurchase program that expires on December 31, 2015. Under the program, 721,040 shares were repurchased during the three months ended March 31, 2015, at a cost of approximately $25.0 million. During the three months ended March 31, 2014, the Company repurchased 276,546 shares at a cost of approximately $10.0 million. Certain shares of stock repurchased during March 2015, totaling $7.0 million, were cash settled in April 2015 in accordance with normal settlement practices. | |
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. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03") which changes the presentation of debt issuance costs in financial statements to present such costs as a direct deduction from the related debt liability rather than as an asset. ASU 2015-03 will become effective for public companies during interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. We do not expect the adoption of ASU 2015-03 will have a material impact on our consolidated financial statements. | |
In February 2015, the FASB issued Accounting Standards Update No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis" ("ASU 2015-02") which updates the considerations on whether an entity should consolidate certain legal entities. The update removes the indefinite deferral of specialized guidance for certain investment funds and changes the way that entities evaluate limited partnerships and fees paid to service providers in the consolidation determination. ASU 2015-02 will become effective for public companies during interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. We do not expect the adoption of ASU 2015-02 will have a material impact on our consolidated financial statements. | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers," ("ASU 2014-09") providing common revenue recognition guidance for U.S. GAAP. Under ASU 2014-09, an entity recognizes revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. It also requires additional detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 will become effective for public companies during interim and annual reporting periods beginning after December 15, 2016; however, in April 2015, the FASB voted to propose a one year deferral of the effective date. The proposed deferral may permit early adoption, but would not allow adoption any earlier than the original effective date of the standard. We are currently evaluating the impact this standard will have on our consolidated financial statements. | |
Reclassifications | Reclassifications |
Certain prior year balances have been reclassified in the consolidated statements of operations and cash flows to conform to the 2015 presentation. |
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Business Combinations [Abstract] | ||||||||
Acquisition and divestiture activity | The Company's acquisition and divestiture activities are summarized below: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Acquisitions: | ||||||||
Purchase price | $ | 46.4 | $ | 117.6 | ||||
Net cash paid | $ | 45.5 | $ | 112.6 | ||||
Goodwill recorded | $ | — | $ | 82.1 | ||||
Preliminary purchase price allocation | The following table represents our preliminary purchase price allocation as of March 31, 2015: | |||||||
March 31, | ||||||||
2015 | ||||||||
(in millions) | ||||||||
Accounts receivable | $ | 29.4 | ||||||
Inventories | 36.1 | |||||||
Property, plant, and equipment | 70.5 | |||||||
Goodwill | 409.1 | |||||||
Other assets | 76 | |||||||
Accounts payable | (15.4 | ) | ||||||
Accrued liabilities | (10.1 | ) | ||||||
Total net assets acquired | $ | 595.6 | ||||||
Fair_Value_Accounting_Tables
Fair Value Accounting (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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, 2015 | ||||||||||||||||
(in millions) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 353.8 | $ | — | $ | — | $ | 353.8 | ||||||||
Restricted cash | 211.1 | — | — | 211.1 | ||||||||||||
Total assets | $ | 564.9 | $ | — | $ | — | $ | 564.9 | ||||||||
Liabilities: | ||||||||||||||||
Interest rate hedges:(1) | ||||||||||||||||
Wholly-owned subsidiaries | $ | — | $ | 2.5 | $ | — | $ | 2.5 | ||||||||
Partially-owned subsidiaries | — | 2.2 | — | 2.2 | ||||||||||||
Fuel derivative instruments(1) | — | 1.4 | — | 1.4 | ||||||||||||
Total liabilities | $ | — | $ | 6.1 | $ | — | $ | 6.1 | ||||||||
Fair Value Measurement as of December 31, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 415.2 | $ | — | $ | — | $ | 415.2 | ||||||||
Restricted cash | 234.7 | — | — | 234.7 | ||||||||||||
Total assets | $ | 649.9 | $ | — | $ | — | $ | 649.9 | ||||||||
Liabilities: | ||||||||||||||||
Interest rate hedges:(1) | ||||||||||||||||
Wholly-owned subsidiaries | $ | — | $ | 6.4 | $ | — | $ | 6.4 | ||||||||
Partially-owned subsidiaries | — | 2 | — | 2 | ||||||||||||
Fuel derivative instruments(1) | — | 2.1 | — | 2.1 | ||||||||||||
Total liabilities | $ | — | $ | 10.5 | $ | — | $ | 10.5 | ||||||||
(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-15 | 31-Dec-14 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||||
(in millions) | ||||||||||||||||
Recourse: | ||||||||||||||||
Senior notes | $ | 399.6 | $ | 402.6 | $ | 399.6 | $ | 387 | ||||||||
Convertible subordinated notes | 449.5 | 699 | 449.5 | 593.9 | ||||||||||||
Less: unamortized discount | (55.8 | ) | (59.6 | ) | ||||||||||||
393.7 | 389.9 | |||||||||||||||
Capital lease obligations | 38.3 | 38.3 | 39.1 | 39.1 | ||||||||||||
Other | 0.7 | 0.7 | 0.7 | 0.7 | ||||||||||||
832.3 | 1,140.60 | 829.3 | 1,020.70 | |||||||||||||
Non-recourse: | ||||||||||||||||
2006 secured railcar equipment notes | 218.6 | 240.6 | 223 | 245.6 | ||||||||||||
Promissory notes | 341.3 | 340.8 | 363.9 | 362.7 | ||||||||||||
2009 secured railcar equipment notes | 186.4 | 225.2 | 188.8 | 227.7 | ||||||||||||
2010 secured railcar equipment notes | 307.7 | 340.9 | 311.5 | 344 | ||||||||||||
TILC warehouse facility | 101.4 | 101.4 | 120.6 | 120.6 | ||||||||||||
TRL 2012 secured railcar equipment notes (RIV 2013) | 466.1 | 466.1 | 472.2 | 470.3 | ||||||||||||
TRIP Master Funding secured railcar equipment notes | 1,032.10 | 1,110.00 | 1,043.70 | 1,121.40 | ||||||||||||
2,653.60 | 2,825.00 | 2,723.70 | 2,892.30 | |||||||||||||
Total | $ | 3,485.90 | $ | 3,965.60 | $ | 3,553.00 | $ | 3,913.00 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Financial information for segments | The financial information for these segments is shown in the tables below. We operate principally in North America. | |||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||
Revenues | Operating Profit (Loss) | |||||||||||||||
External | Intersegment | Total | ||||||||||||||
(in millions) | ||||||||||||||||
Rail Group | $ | 875.4 | $ | 269.1 | $ | 1,144.50 | $ | 212.7 | ||||||||
Construction Products Group | 111.4 | 1.4 | 112.8 | 8.3 | ||||||||||||
Inland Barge Group | 153.1 | — | 153.1 | 27.5 | ||||||||||||
Energy Equipment Group | 241.5 | 58.6 | 300.1 | 37.2 | ||||||||||||
Railcar Leasing and Management Services Group | 244.2 | 0.6 | 244.8 | 122.8 | ||||||||||||
All Other | 1.1 | 27 | 28.1 | (1.5 | ) | |||||||||||
Segment Totals before Eliminations and Corporate | 1,626.70 | 356.7 | 1,983.40 | 407 | ||||||||||||
Corporate | — | — | — | (26.7 | ) | |||||||||||
Eliminations – Lease subsidiary | — | (259.0 | ) | (259.0 | ) | (48.3 | ) | |||||||||
Eliminations – Other | — | (97.7 | ) | (97.7 | ) | 1.1 | ||||||||||
Consolidated Total | $ | 1,626.70 | $ | — | $ | 1,626.70 | $ | 333.1 | ||||||||
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 | ||||||||
Railcar_Leasing_and_Management1
Railcar Leasing and Management Services Group (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
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-15 | |||||||||||||||||||||||||||||
Leasing Group | |||||||||||||||||||||||||||||
Wholly- | Partially-Owned Subsidiaries | Manufacturing/ | Total | ||||||||||||||||||||||||||
Owned | Corporate | ||||||||||||||||||||||||||||
Subsidiaries | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Cash, cash equivalents, and short-term marketable securities | $ | 4.4 | $ | — | $ | 686.3 | $ | 690.7 | |||||||||||||||||||||
Property, plant, and equipment, net | $ | 2,833.30 | $ | 1,983.40 | $ | 916.4 | $ | 5,733.10 | |||||||||||||||||||||
Net deferred profit on railcars sold to | (584.2 | ) | |||||||||||||||||||||||||||
the Leasing Group | |||||||||||||||||||||||||||||
Consolidated property, plant and equipment, net | $ | 5,148.90 | |||||||||||||||||||||||||||
Restricted cash | $ | 122 | $ | 89.1 | $ | — | $ | 211.1 | |||||||||||||||||||||
Debt: | |||||||||||||||||||||||||||||
Recourse | $ | 38.3 | $ | — | $ | 850.2 | $ | 888.5 | |||||||||||||||||||||
Less: unamortized discount | — | — | (56.2 | ) | (56.2 | ) | |||||||||||||||||||||||
38.3 | — | 794 | 832.3 | ||||||||||||||||||||||||||
Non-recourse | 1,155.40 | 1,498.20 | — | 2,653.60 | |||||||||||||||||||||||||
Total debt | $ | 1,193.70 | $ | 1,498.20 | $ | 794 | $ | 3,485.90 | |||||||||||||||||||||
Net deferred tax liabilities | $ | 654.7 | $ | 0.9 | $ | (40.9 | ) | $ | 614.7 | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Leasing Group | |||||||||||||||||||||||||||||
Wholly- | Partially-Owned Subsidiaries | Manufacturing/ | Total | ||||||||||||||||||||||||||
Owned | Corporate | ||||||||||||||||||||||||||||
Subsidiaries | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Cash, cash equivalents, and short-term marketable securities | $ | 11.9 | $ | — | $ | 951 | $ | 962.9 | |||||||||||||||||||||
Property, plant, and equipment, net | $ | 2,599.20 | $ | 1,999.90 | $ | 861 | $ | 5,460.10 | |||||||||||||||||||||
Net deferred profit on railcars sold to | (557.2 | ) | |||||||||||||||||||||||||||
the Leasing Group | |||||||||||||||||||||||||||||
Consolidated property, plant and equipment, net | $ | 4,902.90 | |||||||||||||||||||||||||||
Restricted cash | $ | 142.8 | $ | 91.9 | $ | — | $ | 234.7 | |||||||||||||||||||||
Debt: | |||||||||||||||||||||||||||||
Recourse | $ | 39.1 | $ | — | $ | 850.2 | $ | 889.3 | |||||||||||||||||||||
Less: unamortized discount | — | — | (60.0 | ) | (60.0 | ) | |||||||||||||||||||||||
39.1 | — | 790.2 | 829.3 | ||||||||||||||||||||||||||
Non-recourse | 1,207.80 | 1,515.90 | — | 2,723.70 | |||||||||||||||||||||||||
Total debt | $ | 1,246.90 | $ | 1,515.90 | $ | 790.2 | $ | 3,553.00 | |||||||||||||||||||||
Net deferred tax liabilities | $ | 658.2 | $ | 0.9 | $ | (44.1 | ) | $ | 615 | ||||||||||||||||||||
Selected consolidating income statement information for the Leasing Group | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | Percent | |||||||||||||||||||||||||||
($ in millions) | Change | ||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Leasing and management | $ | 166.1 | $ | 150.2 | 10.6 | % | |||||||||||||||||||||||
Sales of railcars owned one year or less at the time of sale | 78.7 | 292.9 | * | ||||||||||||||||||||||||||
Total revenues | $ | 244.8 | $ | 443.1 | (44.8 | ) | |||||||||||||||||||||||
Operating profit: | |||||||||||||||||||||||||||||
Leasing and management | $ | 82.3 | $ | 63.9 | 28.8 | ||||||||||||||||||||||||
Railcar sales: | |||||||||||||||||||||||||||||
Railcars owned one year or less at the time of sale | 25.6 | 88.9 | |||||||||||||||||||||||||||
Railcars owned more than one year at the time of sale | 14.9 | 77.5 | |||||||||||||||||||||||||||
Total operating profit | $ | 122.8 | $ | 230.3 | (46.7 | ) | |||||||||||||||||||||||
Operating profit margin: | |||||||||||||||||||||||||||||
Leasing and management | 49.5 | % | 42.5 | % | |||||||||||||||||||||||||
Railcar sales | * | * | |||||||||||||||||||||||||||
Total operating profit margin | 50.2 | % | 52 | % | |||||||||||||||||||||||||
Selected expense information(1): | |||||||||||||||||||||||||||||
Depreciation | $ | 34.1 | $ | 32.5 | 4.9 | ||||||||||||||||||||||||
Maintenance | $ | 19.9 | $ | 21 | (5.2 | ) | |||||||||||||||||||||||
Rent | $ | 11.8 | $ | 13.3 | (11.3 | ) | |||||||||||||||||||||||
Interest | $ | 37.9 | $ | 37.3 | 1.6 | ||||||||||||||||||||||||
* 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. | |||||||||||||||||||||||||||||
Proceeds from the sale of leased railcars to Element | During the three months ended March 31, 2015 and 2014, the Company received proceeds from the sale of leased railcars to Element Financial Corporation ("Element") under the strategic alliance with Element announced in December 2013 as follows: | ||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Leasing Group: | |||||||||||||||||||||||||||||
Railcars owned one year or less at the time of sale | $ | 50.1 | $ | 277.9 | |||||||||||||||||||||||||
Railcars owned more than one year at the time of sale | 61.7 | 222.7 | |||||||||||||||||||||||||||
Rail Group | 15.2 | 13.7 | |||||||||||||||||||||||||||
$ | 127 | $ | 514.3 | ||||||||||||||||||||||||||
Since the inception of our alliance, the Company has received proceeds of $1,114.7 million from the sale of leased railcars to Element. | |||||||||||||||||||||||||||||
Future contractual minimum rental revenues on leases | Future contractual minimum rental revenues on leases are as follows: | ||||||||||||||||||||||||||||
Remaining nine months of 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Future contractual minimum rental revenue | $ | 384.8 | $ | 437.7 | $ | 363.4 | $ | 289 | $ | 206.5 | $ | 304 | $ | 1,985.40 | |||||||||||||||
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 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Future operating lease obligations of Trusts’ railcars | $ | 22.5 | $ | 29.3 | $ | 29.2 | $ | 29.2 | $ | 28.8 | $ | 170.2 | $ | 309.2 | |||||||||||||||
Future contractual minimum rental revenues of Trusts’ railcars | $ | 39.6 | $ | 45.7 | $ | 36.7 | $ | 27.3 | $ | 18.3 | $ | 32.8 | $ | 200.4 | |||||||||||||||
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 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Future operating lease obligations | $ | 9.7 | $ | 12.8 | $ | 12.1 | $ | 12 | $ | 9.5 | $ | 28.7 | $ | 84.8 | |||||||||||||||
Future contractual minimum rental revenues | $ | 15.4 | $ | 18.6 | $ | 11 | $ | 6.6 | $ | 3.7 | $ | 5.9 | $ | 61.2 | |||||||||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||
Interest rate hedges | Interest rate hedges | ||||||||||||||||||
Included in accompanying balance sheet | |||||||||||||||||||
at March 31, 2015 | |||||||||||||||||||
Notional | Interest | Liability | AOCL – | Noncontrolling | |||||||||||||||
Amount | Rate(1) | loss/ | Interest | ||||||||||||||||
(income) | |||||||||||||||||||
(in millions, except %) | |||||||||||||||||||
Expired hedges: | |||||||||||||||||||
2006 secured railcar equipment notes | $ | 200 | 4.87 | % | $ | — | $ | (1.2 | ) | $ | — | ||||||||
Promissory notes | $ | 370 | 5.34 | % | $ | — | $ | 0.5 | $ | — | |||||||||
TRIP Holdings warehouse loan | $ | 788.5 | 3.6 | % | $ | — | $ | 9.5 | $ | 12.8 | |||||||||
Open hedges: | |||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | $ | 53.8 | 2.62 | % | $ | 2.2 | $ | 0.9 | $ | 1.3 | |||||||||
Promissory notes | $ | 364.2 | 4.13 | % | $ | 2.5 | $ | 1.6 | $ | — | |||||||||
(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, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
(in millions) | |||||||||||||||||||
Expired hedges: | |||||||||||||||||||
2006 secured railcar equipment notes | $ | (0.1 | ) | $ | (0.1 | ) | $ | (0.3 | ) | ||||||||||
Promissory notes | $ | 0.7 | $ | 0.8 | $ | 0.5 | |||||||||||||
TRIP Holdings warehouse loan | $ | 1.3 | $ | 1.3 | $ | 4.9 | |||||||||||||
Open hedges: | |||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | $ | 0.3 | $ | 0.4 | $ | 1.1 | |||||||||||||
Promissory notes | $ | 3.7 | $ | 3.9 | $ | 2.5 | |||||||||||||
(1) Based on the fair value of open hedges as of March 31, 2015 | |||||||||||||||||||
Property_Plant_and_Equipment_T
Property, Plant, and Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, 2015 and December 31, 2014. | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Manufacturing/Corporate: | ||||||||
Land | $ | 88.6 | $ | 81.4 | ||||
Buildings and improvements | 557.2 | 548.2 | ||||||
Machinery and other | 1,020.30 | 975.7 | ||||||
Construction in progress | 88.9 | 76.4 | ||||||
1,755.00 | 1,681.70 | |||||||
Less accumulated depreciation | (838.6 | ) | (820.7 | ) | ||||
916.4 | 861 | |||||||
Leasing: | ||||||||
Wholly-owned subsidiaries: | ||||||||
Machinery and other | 10.7 | 10.7 | ||||||
Equipment on lease | 3,428.20 | 3,189.60 | ||||||
3,438.90 | 3,200.30 | |||||||
Less accumulated depreciation | (605.6 | ) | (601.1 | ) | ||||
2,833.30 | 2,599.20 | |||||||
Partially-owned subsidiaries: | ||||||||
Equipment on lease | 2,260.60 | 2,261.20 | ||||||
Less accumulated depreciation | (277.2 | ) | (261.3 | ) | ||||
1,983.40 | 1,999.90 | |||||||
Net deferred profit on railcars sold to the Leasing Group | (584.2 | ) | (557.2 | ) | ||||
$ | 5,148.90 | $ | 4,902.90 | |||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Goodwill by segment | Goodwill by segment is as follows: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(as reported) | ||||||||
(in millions) | ||||||||
Rail Group | $ | 134.6 | $ | 134.6 | ||||
Construction Products Group | 128.3 | 128.3 | ||||||
Energy Equipment Group | 507 | 508.5 | ||||||
Railcar Leasing and Management Services Group | 1.8 | 1.8 | ||||||
$ | 771.7 | $ | 773.2 | |||||
Warranties_Tables
Warranties (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, 2015 and 2014 are as follows: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Beginning balance | $ | 17.8 | $ | 14.7 | ||||
Warranty costs incurred | (1.7 | ) | (0.8 | ) | ||||
Warranty originations and revisions | 5.7 | 2.3 | ||||||
Warranty expirations | (1.4 | ) | (1.0 | ) | ||||
Ending balance | $ | 20.4 | $ | 15.2 | ||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||
Components of debt | The following table summarizes the components of debt as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||
31-Mar-15 | December 31, | |||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Corporate – Recourse: | ||||||||||||||||||||||||
Revolving credit facility | $ | — | $ | — | ||||||||||||||||||||
Senior notes, net of unamortized discount of $0.4 and $0.4 | 399.6 | 399.6 | ||||||||||||||||||||||
Convertible subordinated notes, net of unamortized discount of $55.8 and $59.6 | 393.7 | 389.9 | ||||||||||||||||||||||
Other | 0.7 | 0.7 | ||||||||||||||||||||||
794 | 790.2 | |||||||||||||||||||||||
Leasing – Recourse: | ||||||||||||||||||||||||
Capital lease obligations | 38.3 | 39.1 | ||||||||||||||||||||||
Total recourse debt | 832.3 | 829.3 | ||||||||||||||||||||||
Leasing – Non-recourse: | ||||||||||||||||||||||||
Wholly-owned subsidiaries: | ||||||||||||||||||||||||
2006 secured railcar equipment notes | 218.6 | 223 | ||||||||||||||||||||||
Promissory notes | 341.3 | 363.9 | ||||||||||||||||||||||
2009 secured railcar equipment notes | 186.4 | 188.8 | ||||||||||||||||||||||
2010 secured railcar equipment notes | 307.7 | 311.5 | ||||||||||||||||||||||
TILC warehouse facility | 101.4 | 120.6 | ||||||||||||||||||||||
1,155.40 | 1,207.80 | |||||||||||||||||||||||
Partially-owned subsidiaries: | ||||||||||||||||||||||||
TRL 2012 secured railcar equipment notes (RIV 2013) | 466.1 | 472.2 | ||||||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | 1,032.10 | 1,043.70 | ||||||||||||||||||||||
1,498.20 | 1,515.90 | |||||||||||||||||||||||
Total non–recourse debt | 2,653.60 | 2,723.70 | ||||||||||||||||||||||
Total debt | $ | 3,485.90 | $ | 3,553.00 | ||||||||||||||||||||
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, 2015 and 2014 is as follows: | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Coupon rate interest | $ | 4.4 | $ | 4.4 | ||||||||||||||||||||
Amortized debt discount | 3.8 | 3.5 | ||||||||||||||||||||||
$ | 8.2 | $ | 7.9 | |||||||||||||||||||||
Remaining principal payments under existing debt agreements | The remaining principal payments under existing debt agreements as of March 31, 2015, after considering the extension of the TILC Warehouse facility in April 2015, are as follows: | |||||||||||||||||||||||
Remaining nine months of 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Recourse: | ||||||||||||||||||||||||
Corporate | $ | 0.2 | $ | 0.2 | $ | 0.3 | $ | — | $ | — | $ | 849.5 | ||||||||||||
Leasing – capital lease obligations (Note 6) | 2.5 | 3.5 | 3.7 | 28.6 | — | — | ||||||||||||||||||
Non-recourse – leasing (Note 6): | ||||||||||||||||||||||||
2006 secured railcar equipment notes | 14.1 | 21.8 | 24 | 25.3 | 28 | 105.4 | ||||||||||||||||||
Promissory notes | 18.9 | 322.4 | — | — | — | — | ||||||||||||||||||
2009 secured railcar equipment notes | 7.2 | 6.5 | 6.3 | 6.5 | 11.2 | 148.7 | ||||||||||||||||||
2010 secured railcar equipment notes | 11.5 | 14.9 | 13.7 | 10 | 7.6 | 250 | ||||||||||||||||||
TILC warehouse facility | 2.8 | 3.7 | 3.7 | 3.7 | 0.7 | — | ||||||||||||||||||
TRL 2012 secured railcar equipment notes | 17.1 | 22.3 | 22.9 | 23.1 | 22.2 | 358.5 | ||||||||||||||||||
(RIV 2013) | ||||||||||||||||||||||||
TRIP Master Funding secured railcar equipment notes | 34.3 | 39.8 | 29.2 | 41.8 | 50.1 | 836.9 | ||||||||||||||||||
Facility termination payments - TILC warehouse facility | — | — | — | — | 86.8 | — | ||||||||||||||||||
Total principal payments | $ | 108.6 | $ | 435.1 | $ | 103.8 | $ | 139 | $ | 206.6 | $ | 2,549.00 | ||||||||||||
Other_Net_Tables
Other, Net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Income and Expenses [Abstract] | ||||||||
Other, net (income) expense | Other, net (income) expense consists of the following items: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Foreign currency exchange transactions | $ | (1.2 | ) | $ | 0.4 | |||
Gain (loss) on equity investments | 0.1 | (0.2 | ) | |||||
Other | (1.2 | ) | (0.3 | ) | ||||
Other, net | $ | (2.3 | ) | $ | (0.1 | ) |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, | ||||||||
2015 | 2014 | |||||||
Statutory rate | 35 | % | 35 | % | ||||
State taxes | 1.2 | 0.9 | ||||||
Domestic production activities deduction | (2.1 | ) | (2.2 | ) | ||||
Noncontrolling interest in partially-owned subsidiaries | (1.0 | ) | (1.2 | ) | ||||
Other, net | 0.4 | 0.1 | ||||||
Effective rate | 33.5 | % | 32.6 | % | ||||
Change in unrecognized tax benefits | The change in unrecognized tax benefits for the three months ended March 31, 2015 and 2014 was as follows: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Beginning balance | $ | 62.3 | $ | 55 | ||||
Additions for tax positions related to the current year | 1.3 | 1.2 | ||||||
Reductions for tax positions of prior years | (0.1 | ) | (0.1 | ) | ||||
Settlements | (0.2 | ) | — | |||||
Ending balance | $ | 63.3 | $ | 56.1 | ||||
Employee_Retirement_Plans_Tabl
Employee Retirement Plans (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Expense Components | ||||||||
Defined benefit: | ||||||||
Service cost | $ | 0.1 | $ | 0.1 | ||||
Interest | 5 | 5 | ||||||
Expected return on plan assets | (7.6 | ) | (7.7 | ) | ||||
Amortization of actuarial loss | 1.3 | 0.3 | ||||||
(1.2 | ) | (2.3 | ) | |||||
Profit sharing | 5.3 | 3.7 | ||||||
Multiemployer plan | 0.6 | — | ||||||
Net retirement cost | $ | 4.7 | $ | 1.4 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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, 2015 are as follows: | |||||||||||||||
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, 2014 | $ | (18.5 | ) | $ | (6.6 | ) | $ | (86.8 | ) | $ | (111.9 | ) | ||||
Other comprehensive loss, net of tax, before reclassifications | (3.8 | ) | (0.3 | ) | — | (4.1 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $2.1, $0.5 and $2.6 | — | 3.8 | 0.8 | 4.6 | ||||||||||||
Less: noncontrolling interest | — | (0.6 | ) | — | (0.6 | ) | ||||||||||
Other comprehensive income (loss) | (3.8 | ) | 2.9 | 0.8 | (0.1 | ) | ||||||||||
Balances at March 31, 2015 | $ | (22.3 | ) | $ | (3.7 | ) | $ | (86.0 | ) | $ | (112.0 | ) |
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
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-15 | 31-Mar-14 | |||||||||||||||||||||
Income | Average | EPS | Income | Average | EPS | |||||||||||||||||
(Loss) | Shares | (Loss) | Shares | |||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||
Net income attributable to Trinity Industries, Inc. | $ | 180.2 | $ | 226.4 | ||||||||||||||||||
Unvested restricted share participation | (5.7 | ) | (7.8 | ) | ||||||||||||||||||
Net income attributable to Trinity Industries, Inc. – basic | 174.5 | 151.2 | $ | 1.15 | 218.6 | 150.2 | $ | 1.46 | ||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||
Stock options | — | — | — | 0.1 | ||||||||||||||||||
Convertible subordinated notes | 0.1 | 3.1 | 0.2 | 3.7 | ||||||||||||||||||
Net income attributable to Trinity Industries, Inc. – diluted | $ | 174.6 | 154.3 | $ | 1.13 | $ | 218.8 | 154 | $ | 1.42 | ||||||||||||
Financial_Statements_for_Guara1
Financial Statements for Guarantors of the Senior Notes (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Financial Statements for Guarantors of the Senior Notes [Abstract] | ||||||||||||||||||||
Statements of Operations and Comprehensive Income | ||||||||||||||||||||
Statement of Operations and Comprehensive Income | ||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Revenues | $ | — | $ | 1,300.60 | $ | 559.6 | $ | (233.5 | ) | $ | 1,626.70 | |||||||||
Cost of revenues | (0.8 | ) | 1,038.70 | 410.5 | (237.3 | ) | 1,211.10 | |||||||||||||
Selling, engineering, and administrative expenses | 25.4 | 43.8 | 29.1 | — | 98.3 | |||||||||||||||
Gains/(losses) on disposition of property, plant, and equipment | 0.2 | (0.1 | ) | 15.7 | — | 15.8 | ||||||||||||||
24.4 | 1,082.60 | 423.9 | (237.3 | ) | 1,293.60 | |||||||||||||||
Operating profit (loss) | (24.4 | ) | 218 | 135.7 | 3.8 | 333.1 | ||||||||||||||
Other (income) expense | 4.3 | 7.7 | 36.7 | — | 48.7 | |||||||||||||||
Equity in earnings of subsidiaries, net of taxes | 196.8 | 68.3 | — | (265.1 | ) | — | ||||||||||||||
Income (loss) before income taxes | 168.1 | 278.6 | 99 | (261.3 | ) | 284.4 | ||||||||||||||
Provision (benefit) for income taxes | (12.1 | ) | 96.9 | 9.3 | 1.3 | 95.4 | ||||||||||||||
Net income (loss) | 180.2 | 181.7 | 89.7 | (262.6 | ) | 189 | ||||||||||||||
Net income (loss) attributable to noncontrolling interest | — | — | — | 8.8 | 8.8 | |||||||||||||||
Net income (loss) attributable to controlling interest | $ | 180.2 | $ | 181.7 | $ | 89.7 | $ | (271.4 | ) | $ | 180.2 | |||||||||
Net income (loss) | $ | 180.2 | $ | 181.7 | $ | 89.7 | $ | (262.6 | ) | $ | 189 | |||||||||
Other comprehensive income (loss) | 1.2 | (0.5 | ) | (0.2 | ) | — | 0.5 | |||||||||||||
Comprehensive income | $ | 181.4 | $ | 181.2 | $ | 89.5 | $ | (262.6 | ) | $ | 189.5 | |||||||||
Statement of Operations and Comprehensive Income | ||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Revenues | $ | — | $ | 1,139.60 | $ | 506.8 | $ | (185.9 | ) | $ | 1,460.50 | |||||||||
Cost of revenues | 0.4 | 856.5 | 400.8 | (183.7 | ) | 1,074.00 | ||||||||||||||
Selling, engineering, and administrative expenses | 22 | 31.4 | 30.2 | — | 83.6 | |||||||||||||||
Gains/(losses) on disposition of property, plant, and equipment | (0.3 | ) | 34.3 | 54.4 | — | 88.4 | ||||||||||||||
22.7 | 853.6 | 376.6 | (183.7 | ) | 1,069.20 | |||||||||||||||
Operating profit (loss) | (22.7 | ) | 286 | 130.2 | (2.2 | ) | 391.3 | |||||||||||||
Other (income) expense | 3.8 | 5.6 | 36.4 | — | 45.8 | |||||||||||||||
Equity in earnings of subsidiaries, net of taxes | 252.4 | 68.1 | — | (320.5 | ) | — | ||||||||||||||
Income (loss) before income taxes | 225.9 | 348.5 | 93.8 | (322.7 | ) | 345.5 | ||||||||||||||
Provision (benefit) for income taxes | (0.5 | ) | 106.2 | 8.8 | (2.0 | ) | 112.5 | |||||||||||||
Net income (loss) | 226.4 | 242.3 | 85 | (320.7 | ) | 233 | ||||||||||||||
Net income (loss) attributable to noncontrolling interest | — | — | — | 6.6 | 6.6 | |||||||||||||||
Net income (loss) attributable to controlling interest | $ | 226.4 | $ | 242.3 | $ | 85 | $ | (327.3 | ) | $ | 226.4 | |||||||||
Net income (loss) | $ | 226.4 | $ | 242.3 | $ | 85 | $ | (320.7 | ) | $ | 233 | |||||||||
Other comprehensive income (loss) | 0.6 | — | 2.7 | — | 3.3 | |||||||||||||||
Comprehensive income | $ | 227 | $ | 242.3 | $ | 87.7 | $ | (320.7 | ) | $ | 236.3 | |||||||||
Balance Sheets | ||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 827.7 | $ | 11.1 | $ | 89.4 | $ | (40.3 | ) | $ | 887.9 | |||||||||
Short-term marketable securities | 75 | — | — | — | 75 | |||||||||||||||
Receivables, net of allowance | — | 226.5 | 179.2 | (0.4 | ) | 405.3 | ||||||||||||||
Income tax receivable | 58.6 | — | — | — | 58.6 | |||||||||||||||
Inventory | — | 878.3 | 208.1 | (18.0 | ) | 1,068.40 | ||||||||||||||
Property, plant, and equipment, net | 29.3 | 843.8 | 4,594.10 | (564.3 | ) | 4,902.90 | ||||||||||||||
Investments in and advances to subsidiaries | 4,431.10 | 3,435.20 | 3 | (7,869.3 | ) | — | ||||||||||||||
Restricted cash | — | — | 194.4 | 40.3 | 234.7 | |||||||||||||||
Goodwill and other assets | 180.6 | 610.9 | 339.7 | (30.2 | ) | 1,101.00 | ||||||||||||||
$ | 5,602.30 | $ | 6,005.80 | $ | 5,607.90 | $ | (8,482.2 | ) | $ | 8,733.80 | ||||||||||
Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 15 | $ | 174.4 | $ | 106.6 | $ | (0.6 | ) | $ | 295.4 | |||||||||
Accrued liabilities | 235.8 | 300.1 | 173.7 | — | 709.6 | |||||||||||||||
Debt | 789.5 | 39.1 | 2,724.40 | — | 3,553.00 | |||||||||||||||
Deferred income | — | 34.5 | 1.9 | — | 36.4 | |||||||||||||||
Deferred income taxes | — | 636.9 | 9.3 | (13.6 | ) | 632.6 | ||||||||||||||
Advances from subsidiaries | 1,072.00 | — | — | (1,072.0 | ) | — | ||||||||||||||
Other liabilities | 92.6 | 13.7 | 3.1 | — | 109.4 | |||||||||||||||
Total stockholders' equity | 3,397.40 | 4,807.10 | 2,588.90 | (7,396.0 | ) | 3,397.40 | ||||||||||||||
$ | 5,602.30 | $ | 6,005.80 | $ | 5,607.90 | $ | (8,482.2 | ) | $ | 8,733.80 | ||||||||||
Statements of Cash Flows | ||||||||||||||||||||
Statement of Cash Flows | ||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Operating activities: | ||||||||||||||||||||
Net income | $ | 180.2 | $ | 181.7 | $ | 89.7 | $ | (262.6 | ) | $ | 189 | |||||||||
Equity in earnings of subsidiaries, net of taxes | (196.8 | ) | (68.3 | ) | — | 265.1 | — | |||||||||||||
Other | 81.8 | (181.7 | ) | 35.7 | (15.4 | ) | (79.6 | ) | ||||||||||||
Net cash provided (required) by operating activities | 65.2 | (68.3 | ) | 125.4 | (12.9 | ) | 109.4 | |||||||||||||
Investing activities: | ||||||||||||||||||||
(Increase) decrease in short-term marketable securities | (25.0 | ) | — | — | — | (25.0 | ) | |||||||||||||
Proceeds from railcar lease fleet sales | — | 15.7 | 78.2 | (15.4 | ) | 78.5 | ||||||||||||||
Proceeds from disposition of property, plant, equipment, and other assets | — | — | 1.6 | — | 1.6 | |||||||||||||||
Capital expenditures – leasing | — | (290.0 | ) | (8.8 | ) | 15.4 | (283.4 | ) | ||||||||||||
Capital expenditures – manufacturing and other | (1.8 | ) | (11.5 | ) | (40.2 | ) | — | (53.5 | ) | |||||||||||
Acquisitions, net of cash acquired | — | — | (45.5 | ) | — | (45.5 | ) | |||||||||||||
(Increase) decrease in investment in partially-owned subsidiaries | — | 7.2 | — | (7.2 | ) | — | ||||||||||||||
Other | — | 0.7 | 3.5 | — | 4.2 | |||||||||||||||
Net cash provided (required) by investing activities | (26.8 | ) | (277.9 | ) | (11.2 | ) | (7.2 | ) | (323.1 | ) | ||||||||||
Financing activities: | ||||||||||||||||||||
Proceeds from issuance of common stock, net | — | — | — | — | — | |||||||||||||||
Excess tax benefits from stock-based compensation | 0.4 | — | — | — | 0.4 | |||||||||||||||
Payments to retire debt | — | (0.8 | ) | (70.1 | ) | — | (70.9 | ) | ||||||||||||
(Increase) decrease in restricted cash | — | — | 29.8 | 3.2 | 33 | |||||||||||||||
Shares repurchased | (18.0 | ) | — | — | — | (18.0 | ) | |||||||||||||
Dividends paid to common shareholders | (15.6 | ) | — | — | — | (15.6 | ) | |||||||||||||
Purchase of shares to satisfy employee tax on vested stock | (0.4 | ) | — | — | — | (0.4 | ) | |||||||||||||
Distributions to noncontrolling interest | — | — | (11.3 | ) | — | (11.3 | ) | |||||||||||||
Distributions to controlling interest in partially-owned subsidiaries | — | — | (7.2 | ) | 7.2 | — | ||||||||||||||
Change in intercompany financing between entities | (284.0 | ) | 339 | (67.9 | ) | 12.9 | — | |||||||||||||
Other | — | (0.7 | ) | — | — | (0.7 | ) | |||||||||||||
Net cash provided (required) by financing activities | (317.6 | ) | 337.5 | (126.7 | ) | 23.3 | (83.5 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (279.2 | ) | (8.7 | ) | (12.5 | ) | 3.2 | (297.2 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 827.7 | 11.1 | 89.4 | (40.3 | ) | 887.9 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 548.5 | $ | 2.4 | $ | 76.9 | $ | (37.1 | ) | $ | 590.7 | |||||||||
Statement of Cash Flows | ||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Operating activities: | ||||||||||||||||||||
Net income | $ | 226.4 | $ | 242.3 | $ | 85 | $ | (320.7 | ) | $ | 233 | |||||||||
Equity in earnings of subsidiaries, net of taxes | (252.4 | ) | (68.1 | ) | — | 320.5 | — | |||||||||||||
Other | 86 | (89.0 | ) | (22.1 | ) | (2.6 | ) | (27.7 | ) | |||||||||||
Net cash provided (required) by operating activities | 60 | 85.2 | 62.9 | (2.8 | ) | 205.3 | ||||||||||||||
Investing activities: | ||||||||||||||||||||
(Increase) decrease in short-term marketable securities | (106.7 | ) | — | — | — | (106.7 | ) | |||||||||||||
Proceeds from railcar lease fleet sales | — | 146 | 109.7 | (31.4 | ) | 224.3 | ||||||||||||||
Proceeds from disposition of property, plant, equipment, and other assets | 0.4 | — | 16.8 | — | 17.2 | |||||||||||||||
Capital expenditures – leasing | — | 1.9 | (32.9 | ) | 31.4 | 0.4 | ||||||||||||||
Capital expenditures – manufacturing and other | (3.3 | ) | (7.6 | ) | (38.2 | ) | — | (49.1 | ) | |||||||||||
Acquisitions, net of cash acquired | — | — | (112.6 | ) | — | (112.6 | ) | |||||||||||||
(Increase) decrease in investment in partially-owned subsidiaries | — | 3.3 | — | (3.3 | ) | — | ||||||||||||||
Other | 1 | (1.0 | ) | 2.9 | — | 2.9 | ||||||||||||||
Net cash provided (required) by investing activities | (108.6 | ) | 142.6 | (54.3 | ) | (3.3 | ) | (23.6 | ) | |||||||||||
Financing activities: | ||||||||||||||||||||
Proceeds from issuance of common stock, net | 0.3 | — | — | — | 0.3 | |||||||||||||||
Excess tax benefits from stock-based compensation | 0.4 | — | — | — | 0.4 | |||||||||||||||
Payments to retire debt | — | (0.8 | ) | (52.3 | ) | — | (53.1 | ) | ||||||||||||
(Increase) decrease in restricted cash | — | — | 6.7 | (2.4 | ) | 4.3 | ||||||||||||||
Shares repurchased | (12.5 | ) | — | — | — | (12.5 | ) | |||||||||||||
Dividends paid to common shareholders | (11.6 | ) | — | — | — | (11.6 | ) | |||||||||||||
Purchase of shares to satisfy employee tax on vested stock | (0.1 | ) | — | — | — | (0.1 | ) | |||||||||||||
Distributions to noncontrolling interest | — | — | (5.4 | ) | — | (5.4 | ) | |||||||||||||
Distributions to controlling interest in partially-owned subsidiaries | — | — | (3.3 | ) | 3.3 | — | ||||||||||||||
Change in intercompany financing between entities | 173.4 | (228.1 | ) | 51.9 | 2.8 | — | ||||||||||||||
Other | — | (0.3 | ) | — | — | (0.3 | ) | |||||||||||||
Net cash provided (required) by financing activities | 149.9 | (229.2 | ) | (2.4 | ) | 3.7 | (78.0 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 101.3 | (1.4 | ) | 6.2 | (2.4 | ) | 103.7 | |||||||||||||
Cash and cash equivalents at beginning of period | 409.8 | 2.1 | 44 | (27.4 | ) | 428.5 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 511.1 | $ | 0.7 | $ | 50.2 | $ | (29.8 | ) | $ | 532.2 | |||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details Textual) (USD $) | 0 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | 5-May-14 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2014 |
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Stock split conversion ratio | 2 | ||||
Cost of shares repurchased | $25 | ||||
Current repurchase program | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Authorized amount from board of directors for share repurchase | 250 | 250 | |||
Share repurchase program expiry date | 31-Dec-15 | ||||
Shares repurchased under the program (in shares) | 721,040 | ||||
Cost of shares repurchased | 25 | ||||
Shares repurchased settled in subsequent month | 7 | ||||
Prior repurchase program | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Shares repurchased under the program (in shares) | 276,546 | ||||
Cost of shares repurchased | $10 |
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Acquisitions: | ||
Purchase price | $46.40 | $117.60 |
Net cash paid | 45.5 | 112.6 |
Goodwill recorded | $0 | $82.10 |
Acquisitions_and_Divestitures_2
Acquisitions and Divestitures (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $771.70 | [1] | $773.20 | [2] |
Meyer | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 29.4 | |||
Inventories | 36.1 | |||
Property, plant, and equipment | 70.5 | |||
Goodwill | 409.1 | |||
Other assets | 76 | |||
Accounts payable | -15.4 | |||
Accrued liabilities | -10.1 | |||
Total net assets acquired | $595.60 | |||
[1] | (unaudited) | |||
[2] | (as reported) |
Acquisitions_and_Divestitures_3
Acquisitions and Divestitures (Details Textual) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
divestiture | divestiture | |
Business Acquisition [Line Items] | ||
Number of business divestitures | 0 | 0 |
Fair_Value_Accounting_Details
Fair Value Accounting (Details) (Fair value measurements, recurring, USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Assets: | ||||
Cash equivalents | $353.80 | $415.20 | ||
Restricted cash | 211.1 | 234.7 | ||
Total assets | 564.9 | 649.9 | ||
Liabilities: | ||||
Total liabilities | 6.1 | 10.5 | ||
Fuel derivative instruments | ||||
Liabilities: | ||||
Derivative liabilities | 1.4 | [1] | 2.1 | [1] |
Wholly-owned subsidiaries | Interest rate hedges | ||||
Liabilities: | ||||
Derivative liabilities | 2.5 | [1] | 6.4 | [1] |
Partially-owned subsidiaries | Interest rate hedges | ||||
Liabilities: | ||||
Derivative liabilities | 2.2 | [1] | 2 | [1] |
Level 1 | ||||
Assets: | ||||
Cash equivalents | 353.8 | 415.2 | ||
Restricted cash | 211.1 | 234.7 | ||
Total assets | 564.9 | 649.9 | ||
Liabilities: | ||||
Total liabilities | 0 | 0 | ||
Level 1 | Fuel derivative instruments | ||||
Liabilities: | ||||
Derivative liabilities | 0 | [1] | 0 | [1] |
Level 1 | Wholly-owned subsidiaries | Interest rate hedges | ||||
Liabilities: | ||||
Derivative liabilities | 0 | [1] | 0 | [1] |
Level 1 | Partially-owned subsidiaries | Interest rate hedges | ||||
Liabilities: | ||||
Derivative liabilities | 0 | [1] | 0 | [1] |
Level 2 | ||||
Assets: | ||||
Cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Total assets | 0 | 0 | ||
Liabilities: | ||||
Total liabilities | 6.1 | 10.5 | ||
Level 2 | Fuel derivative instruments | ||||
Liabilities: | ||||
Derivative liabilities | 1.4 | [1] | 2.1 | [1] |
Level 2 | Wholly-owned subsidiaries | Interest rate hedges | ||||
Liabilities: | ||||
Derivative liabilities | 2.5 | [1] | 6.4 | [1] |
Level 2 | Partially-owned subsidiaries | Interest rate hedges | ||||
Liabilities: | ||||
Derivative liabilities | 2.2 | [1] | 2 | [1] |
Level 3 | ||||
Assets: | ||||
Cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Total assets | 0 | 0 | ||
Liabilities: | ||||
Total liabilities | 0 | 0 | ||
Level 3 | Fuel derivative instruments | ||||
Liabilities: | ||||
Derivative liabilities | 0 | [1] | 0 | [1] |
Level 3 | Wholly-owned subsidiaries | Interest rate hedges | ||||
Liabilities: | ||||
Derivative liabilities | 0 | [1] | 0 | [1] |
Level 3 | Partially-owned subsidiaries | Interest rate hedges | ||||
Liabilities: | ||||
Derivative liabilities | $0 | [1] | $0 | [1] |
[1] | Included in accrued liabilities on the consolidated balance sheet. |
Fair_Value_Accounting_Details_
Fair Value Accounting (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Millions, unless otherwise specified | |||
Carrying amounts and estimated fair values of long-term debt | |||
Less: unamortized discount | ($56.20) | [1] | ($60) |
Notes payable | 1,155.40 | [1] | 1,207.80 |
Total debt | 3,485.90 | [1] | 3,553 |
Wholly-owned subsidiaries | Railcar Leasing and Management Services Group | |||
Carrying amounts and estimated fair values of long-term debt | |||
Total debt | 1,193.70 | 1,246.90 | |
Partially-owned subsidiaries | Railcar Leasing and Management Services Group | |||
Carrying amounts and estimated fair values of long-term debt | |||
Total debt | 1,498.20 | 1,515.90 | |
Recourse | |||
Carrying amounts and estimated fair values of long-term debt | |||
Less: unamortized discount | -56.2 | -60 | |
Total debt | 832.3 | 829.3 | |
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 | 38.3 | 39.1 | |
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 | |
Non-recourse | |||
Carrying amounts and estimated fair values of long-term debt | |||
Total debt | 2,653.60 | 2,723.70 | |
Non-recourse | Wholly-owned subsidiaries | Railcar Leasing and Management Services Group | |||
Carrying amounts and estimated fair values of long-term debt | |||
Total debt | 1,155.40 | 1,207.80 | |
Non-recourse | Partially-owned subsidiaries | Railcar Leasing and Management Services Group | |||
Carrying amounts and estimated fair values of long-term debt | |||
Total debt | 1,498.20 | 1,515.90 | |
Carrying Value | |||
Carrying amounts and estimated fair values of long-term debt | |||
Total debt | 3,485.90 | 3,553 | |
Carrying Value | Recourse | |||
Carrying amounts and estimated fair values of long-term debt | |||
Total debt | 832.3 | 829.3 | |
Carrying Value | Recourse | Corporate | |||
Carrying amounts and estimated fair values of long-term debt | |||
Other | 0.7 | 0.7 | |
Total debt | 794 | 790.2 | |
Carrying Value | Recourse | Senior notes | Corporate | |||
Carrying amounts and estimated fair values of long-term debt | |||
Senior notes | 399.6 | 399.6 | |
Less: unamortized discount | -0.4 | -0.4 | |
Carrying Value | Recourse | Convertible subordinated notes | Corporate | |||
Carrying amounts and estimated fair values of long-term debt | |||
Convertible subordinated notes | 449.5 | 449.5 | |
Less: unamortized discount | -55.8 | -59.6 | |
Convertible subordinated notes, net | 393.7 | 389.9 | |
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 | 38.3 | 39.1 | |
Carrying Value | Non-recourse | Railcar Leasing and Management Services Group | |||
Carrying amounts and estimated fair values of long-term debt | |||
Total debt | 2,653.60 | 2,723.70 | |
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 | 1,155.40 | 1,207.80 | |
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 | 1,498.20 | 1,515.90 | |
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 | 218.6 | 223 | |
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 | 341.3 | 363.9 | |
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 | 186.4 | 188.8 | |
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 | 307.7 | 311.5 | |
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 | |||
Revolving credit facility | 101.4 | 120.6 | |
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 | 466.1 | 472.2 | |
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 | 1,032.10 | 1,043.70 | |
Estimated Fair Value | |||
Carrying amounts and estimated fair values of long-term debt | |||
Total debt | 3,965.60 | 3,913 | |
Estimated Fair Value | Recourse | |||
Carrying amounts and estimated fair values of long-term debt | |||
Total debt | 1,140.60 | 1,020.70 | |
Estimated Fair Value | Recourse | Corporate | |||
Carrying amounts and estimated fair values of long-term debt | |||
Convertible subordinated notes | 699 | 593.9 | |
Other | 0.7 | 0.7 | |
Estimated Fair Value | Recourse | Senior notes | Corporate | |||
Carrying amounts and estimated fair values of long-term debt | |||
Senior notes | 402.6 | 387 | |
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 | 38.3 | 39.1 | |
Estimated Fair Value | Non-recourse | Railcar Leasing and Management Services Group | |||
Carrying amounts and estimated fair values of long-term debt | |||
Total debt | 2,825 | 2,892.30 | |
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 | 240.6 | 245.6 | |
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 | 340.8 | 362.7 | |
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 | 225.2 | 227.7 | |
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 | 340.9 | 344 | |
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 | |||
Revolving credit facility | 101.4 | 120.6 | |
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 | 466.1 | 470.3 | |
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 | $1,110 | $1,121.40 | |
[1] | (unaudited) |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Financial information for segments | ||
Total revenues | $1,626.70 | $1,460.50 |
Operating Profit (Loss) | 333.1 | 391.3 |
Rail Group | ||
Financial information for segments | ||
Total revenues | 875.4 | 601.1 |
Operating Profit (Loss) | 212.7 | 167.5 |
Construction Products Group | ||
Financial information for segments | ||
Total revenues | 111.4 | 112.2 |
Operating Profit (Loss) | 8.3 | 21.7 |
Inland Barge Group | ||
Financial information for segments | ||
Total revenues | 153.1 | 136.9 |
Operating Profit (Loss) | 27.5 | 26.7 |
Energy Equipment Group | ||
Financial information for segments | ||
Total revenues | 241.5 | 167 |
Operating Profit (Loss) | 37.2 | 22.9 |
Railcar Leasing and Management Services Group | ||
Financial information for segments | ||
Total revenues | 244.2 | 442.2 |
Operating Profit (Loss) | 122.8 | 230.3 |
All Other | ||
Financial information for segments | ||
Total revenues | 1.1 | 1.1 |
Operating Profit (Loss) | -1.5 | -5.4 |
Segment Totals before Eliminations and Corporate Expenses | ||
Financial information for segments | ||
Total revenues | 1,626.70 | 1,460.50 |
Operating Profit (Loss) | 407 | 463.7 |
Corporate | ||
Financial information for segments | ||
Total revenues | 0 | 0 |
Operating Profit (Loss) | -26.7 | -23.1 |
Eliminations – Lease subsidiary | ||
Financial information for segments | ||
Total revenues | 0 | 0 |
Operating Profit (Loss) | -48.3 | -49.3 |
Eliminations – Other | ||
Financial information for segments | ||
Total revenues | 0 | 0 |
Operating Profit (Loss) | 1.1 | 0 |
Total | ||
Financial information for segments | ||
Total revenues | 1,626.70 | 1,460.50 |
Total | Rail Group | ||
Financial information for segments | ||
Total revenues | 1,144.50 | 857.4 |
Total | Construction Products Group | ||
Financial information for segments | ||
Total revenues | 112.8 | 113.1 |
Total | Inland Barge Group | ||
Financial information for segments | ||
Total revenues | 153.1 | 136.9 |
Total | Energy Equipment Group | ||
Financial information for segments | ||
Total revenues | 300.1 | 210.6 |
Total | Railcar Leasing and Management Services Group | ||
Financial information for segments | ||
Total revenues | 244.8 | 443.1 |
Operating Profit (Loss) | 122.8 | 230.3 |
Total | All Other | ||
Financial information for segments | ||
Total revenues | 28.1 | 23.2 |
Total | Segment Totals before Eliminations and Corporate Expenses | ||
Financial information for segments | ||
Total revenues | 1,983.40 | 1,784.30 |
Total | Corporate | ||
Financial information for segments | ||
Total revenues | 0 | 0 |
Total | Eliminations – Lease subsidiary | ||
Financial information for segments | ||
Total revenues | -259 | -249.1 |
Total | Eliminations – Other | ||
Financial information for segments | ||
Total revenues | -97.7 | -74.7 |
Intersegment | ||
Financial information for segments | ||
Total revenues | 0 | 0 |
Intersegment | Rail Group | ||
Financial information for segments | ||
Total revenues | 269.1 | 256.3 |
Intersegment | Construction Products Group | ||
Financial information for segments | ||
Total revenues | 1.4 | 0.9 |
Intersegment | Inland Barge Group | ||
Financial information for segments | ||
Total revenues | 0 | 0 |
Intersegment | Energy Equipment Group | ||
Financial information for segments | ||
Total revenues | 58.6 | 43.6 |
Intersegment | Railcar Leasing and Management Services Group | ||
Financial information for segments | ||
Total revenues | 0.6 | 0.9 |
Intersegment | All Other | ||
Financial information for segments | ||
Total revenues | 27 | 22.1 |
Intersegment | Segment Totals before Eliminations and Corporate Expenses | ||
Financial information for segments | ||
Total revenues | 356.7 | 323.8 |
Intersegment | Corporate | ||
Financial information for segments | ||
Total revenues | 0 | 0 |
Intersegment | Eliminations – Lease subsidiary | ||
Financial information for segments | ||
Total revenues | -259 | -249.1 |
Intersegment | Eliminations – Other | ||
Financial information for segments | ||
Total revenues | ($97.70) | ($74.70) |
Segment_Information_Details_Te
Segment Information (Details Textual) | 3 Months Ended |
Mar. 31, 2015 | |
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, 2015 |
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 |
Carrying value of investment in partially-owned subsidiary | $227.80 |
Weighted average ownership interest in partially-owned subsidiary | 39.00% |
Weighted average ownership interest by institutional investors | 61.00% |
TRIP Holdings | |
Schedule of Investments [Line Items] | |
Date through which equity funding is committed | May-16 |
Remaining equity commitment outstanding | 5.7 |
Remaining equity commitment outstanding from third parties | $12.90 |
Date through which equity is committed, extended date | May-19 |
Railcar_Leasing_and_Management2
Railcar Leasing and Management Services Group (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Millions, unless otherwise specified | |||
Consolidating Financial Information | |||
Cash, cash equivalents, and short-term marketable securities | $690.70 | $962.90 | |
Property, plant, and equipment, net | 5,733.10 | 5,460.10 | |
Net deferred profit on railcars sold to the Leasing Group | -584.2 | -557.2 | |
Property, plant, and equipment, net | 5,148.90 | [1] | 4,902.90 |
Restricted cash | 211.1 | [1] | 234.7 |
Debt: | |||
Less: unamortized discount | -56.2 | [1] | -60 |
Total debt | 3,485.90 | [1] | 3,553 |
Net deferred tax liabilities | 614.7 | 615 | |
Recourse | |||
Debt: | |||
Recourse | 888.5 | 889.3 | |
Less: unamortized discount | -56.2 | -60 | |
Total debt | 832.3 | 829.3 | |
Non-recourse | |||
Debt: | |||
Total debt | 2,653.60 | 2,723.70 | |
Partially-owned subsidiaries | |||
Consolidating Financial Information | |||
Restricted cash | 89.1 | [1] | 91.9 |
Leasing Group | |||
Consolidating Financial Information | |||
Net deferred profit on railcars sold to the Leasing Group | -584.2 | -557.2 | |
Leasing Group | Wholly-owned subsidiaries | |||
Consolidating Financial Information | |||
Cash, cash equivalents, and short-term marketable securities | 4.4 | 11.9 | |
Property, plant, and equipment, net | 2,833.30 | 2,599.20 | |
Restricted cash | 122 | 142.8 | |
Debt: | |||
Total debt | 1,193.70 | 1,246.90 | |
Net deferred tax liabilities | 654.7 | 658.2 | |
Leasing Group | Wholly-owned subsidiaries | Recourse | |||
Debt: | |||
Recourse | 38.3 | 39.1 | |
Less: unamortized discount | 0 | 0 | |
Total debt | 38.3 | 39.1 | |
Leasing Group | Wholly-owned subsidiaries | Non-recourse | |||
Debt: | |||
Total debt | 1,155.40 | 1,207.80 | |
Leasing Group | Partially-owned subsidiaries | |||
Consolidating Financial Information | |||
Cash, cash equivalents, and short-term marketable securities | 0 | 0 | |
Property, plant, and equipment, net | 1,983.40 | 1,999.90 | |
Restricted cash | 89.1 | 91.9 | |
Debt: | |||
Total debt | 1,498.20 | 1,515.90 | |
Net deferred tax liabilities | 0.9 | 0.9 | |
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: | |||
Total debt | 1,498.20 | 1,515.90 | |
Manufacturing/Corporate | |||
Consolidating Financial Information | |||
Cash, cash equivalents, and short-term marketable securities | 686.3 | 951 | |
Property, plant, and equipment, net | 916.4 | 861 | |
Restricted cash | 0 | 0 | |
Debt: | |||
Total debt | 794 | 790.2 | |
Net deferred tax liabilities | -40.9 | -44.1 | |
Manufacturing/Corporate | Recourse | |||
Debt: | |||
Recourse | 850.2 | 850.2 | |
Less: unamortized discount | -56.2 | -60 | |
Total debt | 794 | 790.2 | |
Manufacturing/Corporate | Non-recourse | |||
Debt: | |||
Total debt | $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, 2015 | Mar. 31, 2014 | ||
Revenues: | ||||
Total revenues | $1,626.70 | $1,460.50 | ||
Operating profit: | ||||
Total operating profit | 333.1 | 391.3 | ||
Selected expense information: | ||||
Depreciation | 64 | 55.3 | ||
Interest: | ||||
Interest expense | 51.5 | 46.3 | ||
Railcar Leasing and Management Services Group | ||||
Revenues: | ||||
Total revenues | 244.2 | 442.2 | ||
Operating profit: | ||||
Total operating profit | 122.8 | 230.3 | ||
Operating profit margin: | ||||
Total operating profit margin | 50.20% | 52.00% | ||
Selected expense information: | ||||
Depreciation | 34.1 | [1] | 32.5 | [1] |
Percent Change, Depreciation | 4.90% | [1] | ||
Maintenance | 19.9 | [1] | 21 | [1] |
Percent Change, Maintenance | -5.20% | [1] | ||
Rent | 11.8 | [1] | 13.3 | [1] |
Percent Change, Rent | -11.30% | [1] | ||
Railcar Leasing and Management Services Group | Leasing and management | ||||
Revenues: | ||||
Total revenues | 166.1 | 150.2 | ||
Percent Change | 10.60% | |||
Operating profit: | ||||
Total operating profit | 82.3 | 63.9 | ||
Percentage Change | 28.80% | |||
Operating profit margin: | ||||
Total operating profit margin | 49.50% | 42.50% | ||
Railcar Leasing and Management Services Group | Railcars owned one year or less at the time of sale | ||||
Revenues: | ||||
Total revenues | 78.7 | 292.9 | ||
Operating profit: | ||||
Total operating profit | 25.6 | 88.9 | ||
Railcar Leasing and Management Services Group | Railcars owned more than one year at the time of sale | ||||
Operating profit: | ||||
Total operating profit | 14.9 | 77.5 | ||
Rail Group | ||||
Revenues: | ||||
Total revenues | 875.4 | 601.1 | ||
Operating profit: | ||||
Total operating profit | 212.7 | 167.5 | ||
Total | ||||
Revenues: | ||||
Total revenues | 1,626.70 | 1,460.50 | ||
Total | Railcar Leasing and Management Services Group | ||||
Revenues: | ||||
Total revenues | 244.8 | 443.1 | ||
Percent Change | -44.80% | |||
Operating profit: | ||||
Total operating profit | 122.8 | 230.3 | ||
Percentage Change | -46.70% | |||
Interest: | ||||
Interest expense | 37.9 | [1] | 37.3 | [1] |
Percent Change, Total interest expense | 1.60% | [1] | ||
Total | Rail Group | ||||
Revenues: | ||||
Total revenues | $1,144.50 | $857.40 | ||
[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. |
Railcar_Leasing_and_Management4
Railcar Leasing and Management Services Group (Details 2) (USD $) | 3 Months Ended | 16 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenues | $1,626.70 | $1,460.50 | |
Proceeds from railcar lease fleet sales owned more than one year at the time of sale | 78.5 | 224.3 | |
Railcar Leasing and Management Services Group | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenues | 244.2 | 442.2 | |
Rail Group | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenues | 875.4 | 601.1 | |
Element | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Proceeds from the sale of leased railcars | 127 | 514.3 | 1,114.70 |
Element | Rail Group | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenues | 15.2 | 13.7 | |
Railcars owned one year or less at the time of sale | Railcar Leasing and Management Services Group | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenues | 78.7 | 292.9 | |
Railcars owned one year or less at the time of sale | Element | Railcar Leasing and Management Services Group | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenues | 50.1 | 277.9 | |
Proceeds from railcar lease fleet sales owned more than one year at the time of sale | $61.70 | $222.70 |
Railcar_Leasing_and_Management5
Railcar Leasing and Management Services Group (Details 3) (Railcar Leasing and Management Services Group, USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Railcar Leasing and Management Services Group | |
Future contractual minimum rental revenues on leases | |
Remaining nine months of 2015 | $384.80 |
2016 | 437.7 |
2017 | 363.4 |
2018 | 289 |
2019 | 206.5 |
Thereafter | 304 |
Total | $1,985.40 |
Railcar_Leasing_and_Management6
Railcar Leasing and Management Services Group (Details 4) (Railcar Leasing and Management Services Group, USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Future contractual minimum rental revenues on leases | |
Remaining nine months of 2015 | $384.80 |
2016 | 437.7 |
2017 | 363.4 |
2018 | 289 |
2019 | 206.5 |
Thereafter | 304 |
Total | 1,985.40 |
Operating leases with the Trusts | |
Future contractual minimum rental obligations on leases | |
Remaining nine months of 2015 | 22.5 |
2016 | 29.3 |
2017 | 29.2 |
2018 | 29.2 |
2019 | 28.8 |
Thereafter | 170.2 |
Total | 309.2 |
Future contractual minimum rental revenues on leases | |
Remaining nine months of 2015 | 39.6 |
2016 | 45.7 |
2017 | 36.7 |
2018 | 27.3 |
2019 | 18.3 |
Thereafter | 32.8 |
Total | $200.40 |
Railcar_Leasing_and_Management7
Railcar Leasing and Management Services Group (Details 5) (Railcar Leasing and Management Services Group, USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Future contractual minimum rental revenues on leases | |
Remaining nine months of 2015 | $384.80 |
2016 | 437.7 |
2017 | 363.4 |
2018 | 289 |
2019 | 206.5 |
Thereafter | 304 |
Total | 1,985.40 |
Operating leases other than leases with the Trusts | |
Future contractual minimum rental obligations on leases | |
Remaining nine months of 2015 | 9.7 |
2016 | 12.8 |
2017 | 12.1 |
2018 | 12 |
2019 | 9.5 |
Thereafter | 28.7 |
Total | 84.8 |
Future contractual minimum rental revenues on leases | |
Remaining nine months of 2015 | 15.4 |
2016 | 18.6 |
2017 | 11 |
2018 | 6.6 |
2019 | 3.7 |
Thereafter | 5.9 |
Total | $61.20 |
Railcar_Leasing_and_Management8
Railcar Leasing and Management Services Group (Details Textual) (USD $) | 3 Months Ended | 1 Months Ended | 16 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | ||
Railcar Leasing and Management Services Group (Textual) [Abstract] | |||||||
Revenue | $1,626.70 | $1,460.50 | |||||
Proceeds from railcar lease fleet sales owned more than one year at the time of sale | 78.5 | 224.3 | |||||
Assets purchased from the Trust | 283.4 | -0.4 | |||||
Assets | 8,722.40 | [1] | 8,722.40 | [1] | 8,733.80 | ||
Rail Group | |||||||
Railcar Leasing and Management Services Group (Textual) [Abstract] | |||||||
Revenue | 875.4 | 601.1 | |||||
Railcar Leasing and Management Services Group | |||||||
Railcar Leasing and Management Services Group (Textual) [Abstract] | |||||||
Revenue | 244.2 | 442.2 | |||||
Operating lease obligations guaranteed by Trinity Industries, Inc. and certain subsidiaries | 16.5 | 16.5 | |||||
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 | 1,781.50 | 1,781.50 | |||||
Net book value of equipment securing capital lease obligations | 45.2 | 45.2 | |||||
Net book value of unpledged equipment | 983.2 | 983.2 | |||||
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 | 1,387.40 | 1,387.40 | |||||
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 | 596 | 596 | |||||
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 purchased from the Trust | 121.1 | ||||||
Remaining future operating lease obligations terminated | 105.8 | ||||||
Assets | 146.3 | 146.3 | |||||
Cash | 51 | 51 | |||||
Railcars | 67.8 | 67.8 | |||||
Railcar Leasing and Management Services Group | Minimum | |||||||
Railcar Leasing and Management Services Group (Textual) [Abstract] | |||||||
Term of leases with third parties (in years) | 1 year | ||||||
Railcar Leasing and Management Services Group | Maximum | |||||||
Railcar Leasing and Management Services Group (Textual) [Abstract] | |||||||
Term of leases 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 | 78.7 | 292.9 | |||||
Element | |||||||
Railcar Leasing and Management Services Group (Textual) [Abstract] | |||||||
Proceeds from the sale of leased railcars | 127 | 514.3 | 1,114.70 | ||||
Element | Rail Group | |||||||
Railcar Leasing and Management Services Group (Textual) [Abstract] | |||||||
Revenue | 15.2 | 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 | 50.1 | 277.9 | |||||
Proceeds from railcar lease fleet sales owned more than one year at the time of sale | $61.70 | $222.70 | |||||
[1] | (unaudited) |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Jul. 31, 2011 | |
In Millions, unless otherwise specified | ||||
Interest rate hedges included in balance sheet | ||||
AOCL – loss/ (income) | $3.70 | $6.60 | ||
Designated as hedging instrument | Expired hedges | 2006 secured railcar equipment notes | ||||
Interest rate hedges included in balance sheet | ||||
Notional Amount | 200 | |||
Interest Rate | 4.87% | [1] | ||
Liability | 0 | |||
AOCL – loss/ (income) | -1.2 | |||
Noncontrolling Interest | 0 | |||
Designated as hedging instrument | Expired hedges | Promissory notes | ||||
Interest rate hedges included in balance sheet | ||||
Notional Amount | 370 | |||
Interest Rate | 5.34% | [1] | ||
Liability | 0 | |||
AOCL – loss/ (income) | 0.5 | |||
Noncontrolling Interest | 0 | |||
Designated as hedging instrument | Expired hedges | TRIP Holdings warehouse loan | ||||
Interest rate hedges included in balance sheet | ||||
Notional Amount | 788.5 | |||
Interest Rate | 3.60% | [1] | ||
Liability | 0 | |||
AOCL – loss/ (income) | 9.5 | |||
Noncontrolling Interest | 12.8 | |||
Designated as hedging instrument | Open hedges | Promissory notes | ||||
Interest rate hedges included in balance sheet | ||||
Notional Amount | 364.2 | |||
Interest Rate | 4.13% | [1] | ||
Liability | 2.5 | |||
AOCL – loss/ (income) | 1.6 | |||
Noncontrolling Interest | 0 | |||
Designated as hedging instrument | Open hedges | TRIP Master Funding secured railcar equipment notes | ||||
Interest rate hedges included in balance sheet | ||||
Notional Amount | 53.8 | 94.1 | ||
Interest Rate | 2.62% | [1] | ||
Liability | 2.2 | |||
AOCL – loss/ (income) | 0.9 | |||
Noncontrolling Interest | $1.30 | |||
[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, 2015 | Mar. 31, 2014 | |
Expired hedges | TRIP Holdings warehouse loan | |||
Effect on interest expense - increase/(decrease) | |||
Expected effect during next twelve months | $4.90 | ||
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 | 0.7 | 0.8 | |
Expected effect during next twelve months | 0.5 | [1] | |
Interest expense | Expired hedges | TRIP Holdings warehouse loan | |||
Effect on interest expense - increase/(decrease) | |||
Effect on interest expense | 1.3 | 1.3 | |
Expected effect during next twelve months | 4.9 | [1] | |
Interest expense | Open hedges | Promissory notes | |||
Effect on interest expense - increase/(decrease) | |||
Effect on interest expense | 3.7 | 3.9 | |
Expected effect during next twelve months | 2.5 | [1] | |
Interest expense | Open hedges | TRIP Master Funding secured railcar equipment notes | |||
Effect on interest expense - increase/(decrease) | |||
Effect on interest expense | 0.3 | 0.4 | |
Expected effect during next twelve months | $1.10 | [1] | |
[1] | Based on the fair value of open hedges as of March 31, 2015 |
Derivative_Instruments_Details2
Derivative Instruments (Details Textual) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Jul. 31, 2011 |
Derivative Instruments (Textual) [Abstract] | |||
Remaining AOCL balance | ($3.70) | ($6.60) | |
Designated as hedging instrument | Expired hedges | 2006 secured railcar equipment notes | |||
Derivative Instruments (Textual) [Abstract] | |||
Notional amount | 200 | ||
Changes in fair value of cash flow hedges which is being amortized to income (loss) | 4.5 | ||
Remaining AOCL balance | 1.2 | ||
Designated as hedging instrument | Expired hedges | Promissory notes | |||
Derivative Instruments (Textual) [Abstract] | |||
Notional amount | 370 | ||
Changes in fair value of cash flow hedges which is being amortized to income (loss) | -24.5 | ||
Remaining AOCL balance | -0.5 | ||
Designated as hedging instrument | Expired hedges | TRIP Holdings warehouse loan | |||
Derivative Instruments (Textual) [Abstract] | |||
Notional amount | 788.5 | ||
Expected effect during next twelve months | 4.9 | ||
Remaining AOCL balance | -9.5 | ||
Designated as hedging instrument | Open hedges | Promissory notes | |||
Derivative Instruments (Textual) [Abstract] | |||
Notional amount | 364.2 | ||
Remaining AOCL balance | -1.6 | ||
Designated as hedging instrument | Open hedges | TRIP Master Funding secured railcar equipment notes | |||
Derivative Instruments (Textual) [Abstract] | |||
Notional amount | 53.8 | 94.1 | |
Remaining AOCL balance | -0.9 | ||
Designated as hedging instrument | Fuel derivative instruments | |||
Derivative Instruments (Textual) [Abstract] | |||
Derivative liabilities | 1.4 | ||
Designated as hedging instrument | Foreign exchange hedges | |||
Derivative Instruments (Textual) [Abstract] | |||
Remaining AOCL balance | $0 |
Property_Plant_and_Equipment_D
Property, Plant, and Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Millions, unless otherwise specified | |||
Components of property, plant, and equipment | |||
Less accumulated depreciation | ($1,721.40) | [1] | ($1,683.10) |
Property, plant, and equipment, net before adjustment to net deferred profit | 5,733.10 | 5,460.10 | |
Net deferred profit on railcars sold to the Leasing Group | -584.2 | -557.2 | |
Property, plant, and equipment, net | 5,148.90 | [1] | 4,902.90 |
Partially-owned subsidiaries | |||
Components of property, plant, and equipment | |||
Less accumulated depreciation | -277.2 | [1] | -261.3 |
Manufacturing/Corporate | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 1,755 | 1,681.70 | |
Less accumulated depreciation | -838.6 | -820.7 | |
Property, plant, and equipment, net before adjustment to net deferred profit | 916.4 | 861 | |
Leasing Group | |||
Components of property, plant, and equipment | |||
Net deferred profit on railcars sold to the Leasing Group | -584.2 | -557.2 | |
Leasing Group | Wholly-owned subsidiaries | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 3,438.90 | 3,200.30 | |
Less accumulated depreciation | -605.6 | -601.1 | |
Property, plant, and equipment, net before adjustment to net deferred profit | 2,833.30 | 2,599.20 | |
Leasing Group | Partially-owned subsidiaries | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment, net before adjustment to net deferred profit | 1,983.40 | 1,999.90 | |
Land | Manufacturing/Corporate | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 88.6 | 81.4 | |
Buildings and improvements | Manufacturing/Corporate | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 557.2 | 548.2 | |
Machinery and other | Manufacturing/Corporate | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 1,020.30 | 975.7 | |
Machinery and other | Leasing Group | Wholly-owned subsidiaries | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 10.7 | 10.7 | |
Construction in progress | Manufacturing/Corporate | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 88.9 | 76.4 | |
Equipment on lease | Leasing Group | Wholly-owned subsidiaries | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 3,428.20 | 3,189.60 | |
Equipment on lease | Leasing Group | Partially-owned subsidiaries | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 2,260.60 | 2,261.20 | |
Less accumulated depreciation | ($277.20) | ($261.30) | |
[1] | (unaudited) |
Goodwill_Details
Goodwill (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Goodwill by Segment | ||||
Goodwill | $771.70 | [1] | $773.20 | [2] |
Rail Group | ||||
Goodwill by Segment | ||||
Goodwill | 134.6 | 134.6 | [2] | |
Construction Products Group | ||||
Goodwill by Segment | ||||
Goodwill | 128.3 | 128.3 | [2] | |
Energy Equipment Group | ||||
Goodwill by Segment | ||||
Goodwill | 507 | 508.5 | [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, 2015 | Mar. 31, 2014 |
Changes in the accruals for warranties | ||
Beginning balance | $17.80 | $14.70 |
Warranty costs incurred | -1.7 | -0.8 |
Warranty originations and revisions | 5.7 | 2.3 |
Warranty expirations | -1.4 | -1 |
Ending balance | $20.40 | $15.20 |
Debt_Details
Debt (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Millions, unless otherwise specified | |||
Components of debt | |||
Unamortized discount | $56.20 | [1] | $60 |
Total debt | 3,485.90 | [1] | 3,553 |
Notes payable | 1,155.40 | [1] | 1,207.80 |
Carrying Value | |||
Components of debt | |||
Total debt | 3,485.90 | 3,553 | |
Recourse | |||
Components of debt | |||
Unamortized discount | 56.2 | 60 | |
Total debt | 832.3 | 829.3 | |
Recourse | Carrying Value | |||
Components of debt | |||
Total debt | 832.3 | 829.3 | |
Non-recourse | |||
Components of debt | |||
Total debt | 2,653.60 | 2,723.70 | |
Corporate | Recourse | Carrying Value | |||
Components of debt | |||
Other | 0.7 | 0.7 | |
Total debt | 794 | 790.2 | |
Corporate | Recourse | Revolving credit facility | Carrying Value | |||
Components of debt | |||
Revolving credit facility | 0 | 0 | |
Corporate | Recourse | Senior notes | Carrying Value | |||
Components of debt | |||
Senior notes, net of unamortized discount of $0.4 and $0.4 | 399.6 | 399.6 | |
Unamortized discount | 0.4 | 0.4 | |
Corporate | Recourse | Convertible subordinated notes | Carrying Value | |||
Components of debt | |||
Convertible subordinated notes, net of unamortized discount of $55.8 and $59.6 | 393.7 | 389.9 | |
Unamortized discount | 55.8 | 59.6 | |
Railcar Leasing and Management Services Group | Wholly-owned subsidiaries | |||
Components of debt | |||
Total debt | 1,193.70 | 1,246.90 | |
Railcar Leasing and Management Services Group | Partially-owned subsidiaries | |||
Components of debt | |||
Total debt | 1,498.20 | 1,515.90 | |
Railcar Leasing and Management Services Group | Recourse | Capital lease obligations | Carrying Value | |||
Components of debt | |||
Capital lease obligations | 38.3 | 39.1 | |
Railcar Leasing and Management Services Group | Recourse | Wholly-owned subsidiaries | |||
Components of debt | |||
Unamortized discount | 0 | 0 | |
Total debt | 38.3 | 39.1 | |
Railcar Leasing and Management Services Group | Recourse | Partially-owned subsidiaries | |||
Components of debt | |||
Unamortized discount | 0 | 0 | |
Total debt | 0 | 0 | |
Railcar Leasing and Management Services Group | Non-recourse | Carrying Value | |||
Components of debt | |||
Total debt | 2,653.60 | 2,723.70 | |
Railcar Leasing and Management Services Group | Non-recourse | Wholly-owned subsidiaries | |||
Components of debt | |||
Total debt | 1,155.40 | 1,207.80 | |
Railcar Leasing and Management Services Group | Non-recourse | Wholly-owned subsidiaries | Carrying Value | |||
Components of debt | |||
Total debt | 1,155.40 | 1,207.80 | |
Railcar Leasing and Management Services Group | Non-recourse | Wholly-owned subsidiaries | 2006 secured railcar equipment notes | Carrying Value | |||
Components of debt | |||
Notes payable | 218.6 | 223 | |
Railcar Leasing and Management Services Group | Non-recourse | Wholly-owned subsidiaries | Promissory notes | Carrying Value | |||
Components of debt | |||
Notes payable | 341.3 | 363.9 | |
Railcar Leasing and Management Services Group | Non-recourse | Wholly-owned subsidiaries | 2009 secured railcar equipment notes | Carrying Value | |||
Components of debt | |||
Notes payable | 186.4 | 188.8 | |
Railcar Leasing and Management Services Group | Non-recourse | Wholly-owned subsidiaries | 2010 secured railcar equipment notes | Carrying Value | |||
Components of debt | |||
Notes payable | 307.7 | 311.5 | |
Railcar Leasing and Management Services Group | Non-recourse | Wholly-owned subsidiaries | TILC warehouse facility | Carrying Value | |||
Components of debt | |||
Revolving credit facility | 101.4 | 120.6 | |
Railcar Leasing and Management Services Group | Non-recourse | Partially-owned subsidiaries | |||
Components of debt | |||
Total debt | 1,498.20 | 1,515.90 | |
Railcar Leasing and Management Services Group | Non-recourse | Partially-owned subsidiaries | Carrying Value | |||
Components of debt | |||
Notes payable | 1,498.20 | 1,515.90 | |
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 | 466.1 | 472.2 | |
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 | $1,032.10 | $1,043.70 | |
[1] | (unaudited) |
Debt_Details_1
Debt (Details 1) (Corporate, Recourse, Convertible subordinated notes, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Corporate | Recourse | Convertible subordinated notes | ||
Total interest expense recognized on the Convertible Subordinated Notes | ||
Coupon rate interest | $4.40 | $4.40 |
Amortized debt discount | 3.8 | 3.5 |
Total interest expense recognized on the Convertible Subordinated Notes | $8.20 | $7.90 |
Debt_Details_2
Debt (Details 2) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Remaining principal payments under existing debt agreements | |
Remaining nine months of 2015 | $108.60 |
2016 | 435.1 |
2017 | 103.8 |
2018 | 139 |
2019 | 206.6 |
Thereafter | 2,549 |
Recourse | Corporate | |
Remaining principal payments under existing debt agreements | |
Remaining nine months of 2015 | 0.2 |
2016 | 0.2 |
2017 | 0.3 |
2018 | 0 |
2019 | 0 |
Thereafter | 849.5 |
Recourse | Railcar Leasing and Management Services Group | Capital lease obligations | |
Remaining principal payments under existing debt agreements | |
Remaining nine months of 2015 | 2.5 |
2016 | 3.5 |
2017 | 3.7 |
2018 | 28.6 |
2019 | 0 |
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 2015 | 14.1 |
2016 | 21.8 |
2017 | 24 |
2018 | 25.3 |
2019 | 28 |
Thereafter | 105.4 |
Non-recourse | Railcar Leasing and Management Services Group | Promissory notes | |
Remaining principal payments under existing debt agreements | |
Remaining nine months of 2015 | 18.9 |
2016 | 322.4 |
2017 | 0 |
2018 | 0 |
2019 | 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 2015 | 7.2 |
2016 | 6.5 |
2017 | 6.3 |
2018 | 6.5 |
2019 | 11.2 |
Thereafter | 148.7 |
Non-recourse | Railcar Leasing and Management Services Group | 2010 secured railcar equipment notes | |
Remaining principal payments under existing debt agreements | |
Remaining nine months of 2015 | 11.5 |
2016 | 14.9 |
2017 | 13.7 |
2018 | 10 |
2019 | 7.6 |
Thereafter | 250 |
Non-recourse | Railcar Leasing and Management Services Group | TILC warehouse facility | |
Remaining principal payments under existing debt agreements | |
Remaining nine months of 2015 | 2.8 |
2016 | 3.7 |
2017 | 3.7 |
2018 | 3.7 |
2019 | 0.7 |
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 2015 | 17.1 |
2016 | 22.3 |
2017 | 22.9 |
2018 | 23.1 |
2019 | 22.2 |
Thereafter | 358.5 |
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 2015 | 34.3 |
2016 | 39.8 |
2017 | 29.2 |
2018 | 41.8 |
2019 | 50.1 |
Thereafter | 836.9 |
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 2015 | 0 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
2019 | 86.8 |
Thereafter | $0 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Apr. 30, 2015 | Apr. 01, 2015 | |
Debt Instrument [Line Items] | |||||
Unamortized discount | $56.20 | [1] | $60 | ||
Recourse | |||||
Debt Instrument [Line Items] | |||||
Unamortized discount | 56.2 | 60 | |||
Corporate | Recourse | 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 | 88.6 | ||||
Availability of the revolving credit facility | 336.4 | ||||
Borrowing under revolving credit facility exclusive of letters of credit | 0 | ||||
Letters of credit expiring in current year | 87.2 | ||||
Corporate | Recourse | Convertible subordinated notes | |||||
Debt (Textual) [Abstract] | |||||
Capital in excess of par value related to the Convertible Subordinated Notes' conversion options | 92.5 | 92.5 | |||
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) | $25.16 | ||||
Corporate | Libor | Recourse | Revolving credit facility | |||||
Debt (Textual) [Abstract] | |||||
Percentage points added to base rate to compute interest rates on the credit facility | 1.50% | ||||
Corporate | Prime | Recourse | Revolving credit facility | |||||
Debt (Textual) [Abstract] | |||||
Percentage points added to base rate to compute interest rates on the credit facility | 0.50% | ||||
Railcar Leasing and Management Services Group | Recourse | Wholly-owned subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Unamortized discount | 0 | 0 | |||
Railcar Leasing and Management Services Group | Non-recourse | TILC warehouse facility | TILC | |||||
Debt (Textual) [Abstract] | |||||
Effective annual interest rate yield based upon the estimated market interest rate | 1.95% | ||||
TILC warehouse loan, amount outstanding | 101.4 | ||||
Railcar Leasing and Management Services Group | Non-recourse | TILC warehouse facility | TILC | Subsequent event | |||||
Debt (Textual) [Abstract] | |||||
Revolving credit facility | 1,000 | ||||
Availability of the revolving credit facility | 642.3 | ||||
Maturity date | Apr-18 | ||||
TILC warehouse loan, unused portion of maximum borrowing capacity | $898.60 | ||||
Railcar Leasing and Management Services Group | First installment | Non-recourse | TILC warehouse facility | TILC | Subsequent event | |||||
Debt (Textual) [Abstract] | |||||
Installment payable date | Apr-19 | ||||
[1] | (unaudited) |
Other_Net_Details
Other, Net (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other, net (income) expense | ||
Foreign currency exchange transactions | ($1.20) | $0.40 |
Gain (loss) on equity investments | 0.1 | -0.2 |
Other | -1.2 | -0.3 |
Other, net | ($2.30) | ($0.10) |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
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 | 1.20% | 0.90% |
Domestic production activities deduction | -2.10% | -2.20% |
Noncontrolling interest in partially-owned subsidiaries | -1.00% | -1.20% |
Other, net | 0.40% | 0.10% |
Effective rate | 33.50% | 32.60% |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Change in unrecognized tax benefits | ||
Beginning balance | $62.30 | $55 |
Additions for tax positions related to the current year | 1.3 | 1.2 |
Reductions for tax positions of prior years | -0.1 | -0.1 |
Settlements | -0.2 | 0 |
Ending balance | $63.30 | $56.10 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Income Tax Contingency [Line Items] | |||
Additions for tax positions related to the current year | $1.30 | $1.20 | |
Reductions for tax positions of prior years | 0.1 | 0.1 | |
Unrecognized tax benefits including interest and penalties that would affect the Company's effective tax rate if recognized | 15.1 | 13.8 | |
Total accrued interest and penalties | 11.8 | 11.6 | |
Increase in income tax expense related to interest and penalties on unrecognized tax benefits | $0.20 | $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, 2015 | Mar. 31, 2014 |
Components of Net Retirement Cost | ||
Service cost | $0.10 | $0.10 |
Interest | 5 | 5 |
Expected return on plan assets | -7.6 | -7.7 |
Amortization of actuarial loss | 1.3 | 0.3 |
Defined benefit expense | -1.2 | -2.3 |
Profit sharing | 5.3 | 3.7 |
Multiemployer plan | 0.6 | 0 |
Net retirement cost | $4.70 | $1.40 |
Employee_Retirement_Plans_Deta1
Employee Retirement Plans (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual employer contributions to defined benefit plans | $3.40 | $4.10 |
Expected full year contributions by the employer to defined benefit plans | 19.7 | |
Contributions to multiemployer plan | 0.7 | |
Expected full year contributions by the employer to the multiemployer plan | $2.40 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Changes in accumulated other comprehensive loss | |||
Currency translation adjustments, Beginning Balance | ($18.50) | ||
Currency translation adjustments, Other comprehensive loss, net of tax, before reclassifications | -3.8 | ||
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 (loss) | -3.8 | ||
Currency translation adjustments, Ending Balance | -22.3 | ||
Unrealized loss on derivative financial instruments, Beginning Balance | -6.6 | ||
Unrealized loss on derivative financial instruments, Other comprehensive loss, net of tax, before reclassifications | -0.3 | -1.2 | |
Unrealized loss on derivative financial instruments, Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $6.6 | 3.8 | 4.3 | |
Unrealized loss on derivative financial instruments, Amounts reclassified from accumulated other comprehensive loss, tax benefit | 2.1 | 2 | |
Unrealized loss on derivative financial instruments, Less: noncontrolling interest | -0.6 | ||
Unrealized loss on derivative financial instruments, Other comprehensive income (loss) | 2.9 | ||
Unrealized loss on derivative financial instruments, Ending Balance | -3.7 | ||
Net actuarial gains/(losses) of defined benefit plans, Beginning Balance | -86.8 | ||
Net actuarial gains/(losses) of defined benefit plans, Other comprehensive loss, net of tax, before reclassifications | 0 | ||
Net actuarial gains/(losses) of defined benefit plans, Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $0.5 | 0.8 | 0.2 | |
Net actuarial gains/(losses) of defined benefit plans, Amounts reclassified from accumulated other comprehensive loss, tax benefit | 0.5 | 0.1 | |
Net actuarial gains/(losses) of defined benefit plans, Less: noncontrolling interest | 0 | ||
Net actuarial gains/(losses) of defined benefit plans, Other comprehensive income (loss) | 0.8 | ||
Net actuarial gains/(losses) of defined benefit plans, Ending Balance | -86 | ||
Accumulated Other Comprehensive Loss, Beginning Balance | -111.9 | ||
Accumulated Other Comprehensive Loss, Other comprehensive loss, net of tax, before reclassifications | -4.1 | ||
Accumulated Other Comprehensive Loss, Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $7.1 | 4.6 | ||
Accumulated Other Comprehensive Loss, Amounts reclassified from accumulated other comprehensive loss, tax benefit | 2.6 | ||
Accumulated Other Comprehensive Loss, Less: noncontrolling interest | -0.6 | ||
Accumulated Other Comprehensive Loss, Other comprehensive income (loss) | -0.1 | ||
Accumulated Other Comprehensive Loss, Ending Balance | -112 | [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 | $1.10 | ||
[1] | (unaudited) |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation | $16.40 | $10.90 |
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, 2015 | Mar. 31, 2014 |
Net Income Per Common Share (Textual) [Abstract] | ||
Total weighted average restricted shares and antidilutive stock options (in shares) | 6.9 | 7.5 |
Computation of basic and diluted net income attributable to Trinity Industries, Inc | ||
Net income attributable to Trinity Industries, Inc. | $180.20 | $226.40 |
Unvested restricted share participation | -5.7 | -7.8 |
Net income attributable to Trinity Industries, Inc. – basic | 174.5 | 218.6 |
Net income from continuing operations attributable to Trinity Industries, Inc. - basic, Average Shares | 151.2 | 150.2 |
Net income attributable to Trinity Industries, Inc. - basic, EPS | $1.15 | $1.46 |
Effect of dilutive securities: | ||
Stock options, Income (Loss) | 0 | 0 |
Stock options, Average Shares | 0 | 0.1 |
Convertible Subordinated Notes, Income (Loss) | 0.1 | 0.2 |
Convertible Subordinated Notes, Average Shares | 3.1 | 3.7 |
Net income attributable to Trinity Industries, Inc. – diluted | $174.60 | $218.80 |
Net income from continuing operations attributable to Trinity Industries, Inc. - diluted, Average Shares | 154.3 | 154 |
Net income attributable to Trinity Industries, Inc. - diluted, EPS | $1.13 | $1.42 |
Contingencies_Details
Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 13, 2015 | Mar. 11, 2015 | Feb. 06, 2015 | |
crash_tests | guardrails | crash_tests | |||||
Contingencies (Textual) [Abstract] | |||||||
Minimum possible loss | $3,500,000 | ||||||
Maximum possible loss | 23,700,000 | ||||||
Total accruals | 25,800,000 | ||||||
Revenue | 1,626,700,000 | 1,460,500,000 | |||||
Highway Products Litigation | |||||||
Contingencies (Textual) [Abstract] | |||||||
Number of additional crash tests requested | 8 | ||||||
Number of additional crash tests passed, first installation height | 4 | ||||||
Number of additional crash tests passed, second installation height | 4 | ||||||
Number of ET Plus devices field measured by FHWA engineers, more than | 1,000 | ||||||
Number of states that have removed product from qualified products list | 41 | ||||||
Number of class action lawsuits | 3 | ||||||
Highway Products Litigation | ET Plus | |||||||
Contingencies (Textual) [Abstract] | |||||||
Revenue | 35,100,000 | 46,000,000 | |||||
Revenues as a percent of consolidated revenue | 0.60% | 1.10% | |||||
Train Derailment | |||||||
Contingencies (Textual) [Abstract] | |||||||
Number of tank cars owned by the Company and leased to third party | 13 | ||||||
Number of tank cars manufactured by the Company | 35 | ||||||
Number of tank cars involved in derailment | 72 | ||||||
Environmental and workplace matters | |||||||
Contingencies (Textual) [Abstract] | |||||||
Total accruals | 5,200,000 | ||||||
False Claims Act | Highway Products Litigation | |||||||
Contingencies (Textual) [Abstract] | |||||||
Damages awarded by jury verdict | 175,000,000 | ||||||
Damages awarded by jury verdict, automatically trebled under the Act | 525,000,000 | ||||||
Minimum possible loss | 525,000,000 | ||||||
Maximum possible loss | 709,000,000 | ||||||
Potential amount of bond required in excess of final judgment | 20.00% | ||||||
Total accruals | 0 | ||||||
False Claims Act | Minimum | Highway Products Litigation | |||||||
Contingencies (Textual) [Abstract] | |||||||
Civil penalties per violation, at the discretion of the District Court | 5,500 | ||||||
Civil penalties, at the discretion of the District Court | 5,500 | ||||||
False Claims Act | Maximum | Highway Products Litigation | |||||||
Contingencies (Textual) [Abstract] | |||||||
Civil penalties per violation, at the discretion of the District Court | 11,000 | ||||||
Civil penalties, at the discretion of the District Court | 184,000,000 | ||||||
Class Action, Illinois | Highway Products Litigation | |||||||
Contingencies (Textual) [Abstract] | |||||||
Number of other counties claimed as parties to class action suit | 101 | ||||||
Class Action, Canada | Highway Products Litigation | |||||||
Contingencies (Textual) [Abstract] | |||||||
Compensatory damages sought | 400,000,000 | ||||||
Punitive damages sought | $100,000,000 |
Financial_Statements_for_Guara2
Financial Statements for Guarantors of the Senior Notes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Income Statements, Captions [Line Items] | ||
Revenue | $1,626.70 | $1,460.50 |
Cost of revenues | 1,211.10 | 1,074 |
Selling, engineering, and administrative expenses | 98.3 | 83.6 |
Gains/(losses) on disposition of property, plant, and equipment | 15.8 | 88.4 |
Cost of revenues and operating costs | 1,293.60 | 1,069.20 |
Operating profit (loss) | 333.1 | 391.3 |
Other (income) expense | 48.7 | 45.8 |
Equity in earnings of subsidiaries, net of taxes | 0 | 0 |
Income (loss) before income taxes | 284.4 | 345.5 |
Provision (benefit) for income taxes | 95.4 | 112.5 |
Net income (loss) | 189 | 233 |
Net income attributable to noncontrolling interest | 8.8 | 6.6 |
Net income (loss) attributable to controlling interest | 180.2 | 226.4 |
Other comprehensive income (loss) | 0.5 | 3.3 |
Comprehensive income | 189.5 | 236.3 |
Parent | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 0 | 0 |
Cost of revenues | -0.8 | 0.4 |
Selling, engineering, and administrative expenses | 25.4 | 22 |
Gains/(losses) on disposition of property, plant, and equipment | 0.2 | -0.3 |
Cost of revenues and operating costs | 24.4 | 22.7 |
Operating profit (loss) | -24.4 | -22.7 |
Other (income) expense | 4.3 | 3.8 |
Equity in earnings of subsidiaries, net of taxes | 196.8 | 252.4 |
Income (loss) before income taxes | 168.1 | 225.9 |
Provision (benefit) for income taxes | -12.1 | -0.5 |
Net income (loss) | 180.2 | 226.4 |
Net income attributable to noncontrolling interest | 0 | 0 |
Net income (loss) attributable to controlling interest | 180.2 | 226.4 |
Other comprehensive income (loss) | 1.2 | 0.6 |
Comprehensive income | 181.4 | 227 |
Combined Guarantor Subsidiaries | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 1,300.60 | 1,139.60 |
Cost of revenues | 1,038.70 | 856.5 |
Selling, engineering, and administrative expenses | 43.8 | 31.4 |
Gains/(losses) on disposition of property, plant, and equipment | -0.1 | 34.3 |
Cost of revenues and operating costs | 1,082.60 | 853.6 |
Operating profit (loss) | 218 | 286 |
Other (income) expense | 7.7 | 5.6 |
Equity in earnings of subsidiaries, net of taxes | 68.3 | 68.1 |
Income (loss) before income taxes | 278.6 | 348.5 |
Provision (benefit) for income taxes | 96.9 | 106.2 |
Net income (loss) | 181.7 | 242.3 |
Net income attributable to noncontrolling interest | 0 | 0 |
Net income (loss) attributable to controlling interest | 181.7 | 242.3 |
Other comprehensive income (loss) | -0.5 | 0 |
Comprehensive income | 181.2 | 242.3 |
Combined Non-Guarantor Subsidiaries | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 559.6 | 506.8 |
Cost of revenues | 410.5 | 400.8 |
Selling, engineering, and administrative expenses | 29.1 | 30.2 |
Gains/(losses) on disposition of property, plant, and equipment | 15.7 | 54.4 |
Cost of revenues and operating costs | 423.9 | 376.6 |
Operating profit (loss) | 135.7 | 130.2 |
Other (income) expense | 36.7 | 36.4 |
Equity in earnings of subsidiaries, net of taxes | 0 | 0 |
Income (loss) before income taxes | 99 | 93.8 |
Provision (benefit) for income taxes | 9.3 | 8.8 |
Net income (loss) | 89.7 | 85 |
Net income attributable to noncontrolling interest | 0 | 0 |
Net income (loss) attributable to controlling interest | 89.7 | 85 |
Other comprehensive income (loss) | -0.2 | 2.7 |
Comprehensive income | 89.5 | 87.7 |
Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | -233.5 | -185.9 |
Cost of revenues | -237.3 | -183.7 |
Selling, engineering, and administrative expenses | 0 | 0 |
Gains/(losses) on disposition of property, plant, and equipment | 0 | 0 |
Cost of revenues and operating costs | -237.3 | -183.7 |
Operating profit (loss) | 3.8 | -2.2 |
Other (income) expense | 0 | 0 |
Equity in earnings of subsidiaries, net of taxes | -265.1 | -320.5 |
Income (loss) before income taxes | -261.3 | -322.7 |
Provision (benefit) for income taxes | 1.3 | -2 |
Net income (loss) | -262.6 | -320.7 |
Net income attributable to noncontrolling interest | 8.8 | 6.6 |
Net income (loss) attributable to controlling interest | -271.4 | -327.3 |
Other comprehensive income (loss) | 0 | 0 |
Comprehensive income | ($262.60) | ($320.70) |
Financial_Statements_for_Guara3
Financial Statements for Guarantors of the Senior Notes (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||||
Assets: | |||||
Cash and cash equivalents | $590.70 | [1] | $887.90 | $532.20 | $428.50 |
Short-term marketable securities | 100 | [1] | 75 | ||
Receivables, net of allowance | 544.9 | [1] | 405.3 | ||
Income tax receivable | 0 | [1] | 58.6 | ||
Inventory | 1,045.30 | [1] | 1,068.40 | ||
Property, plant, and equipment, net | 5,148.90 | [1] | 4,902.90 | ||
Investments in and advances to subsidiaries | 0 | 0 | |||
Restricted cash | 211.1 | [1] | 234.7 | ||
Goodwill and other assets | 1,081.50 | 1,101 | |||
Assets | 8,722.40 | [1] | 8,733.80 | ||
Liabilities: | |||||
Accounts payable | 299.6 | [1] | 295.4 | ||
Accrued liabilities | 612.3 | [1] | 709.6 | ||
Debt | 3,485.90 | [1] | 3,553 | ||
Deferred income | 29.1 | [1] | 36.4 | ||
Deferred income taxes | 630.6 | [1] | 632.6 | ||
Advances from subsidiaries | 0 | 0 | |||
Other liabilities | 113.5 | [1] | 109.4 | ||
Total stockholders' equity | 3,551.40 | [1] | 3,397.40 | ||
Total liabilities and stockholders' equity | 8,722.40 | [1] | 8,733.80 | ||
Parent | |||||
Assets: | |||||
Cash and cash equivalents | 548.5 | 827.7 | 511.1 | 409.8 | |
Short-term marketable securities | 100 | 75 | |||
Receivables, net of allowance | 0 | 0 | |||
Income tax receivable | 0 | 58.6 | |||
Inventory | 0 | 0 | |||
Property, plant, and equipment, net | 29.5 | 29.3 | |||
Investments in and advances to subsidiaries | 4,657.70 | 4,431.10 | |||
Restricted cash | 0 | 0 | |||
Goodwill and other assets | 169 | 180.6 | |||
Assets | 5,504.70 | 5,602.30 | |||
Liabilities: | |||||
Accounts payable | 19.1 | 15 | |||
Accrued liabilities | 224.7 | 235.8 | |||
Debt | 793.3 | 789.5 | |||
Deferred income | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Advances from subsidiaries | 818.8 | 1,072 | |||
Other liabilities | 97.4 | 92.6 | |||
Total stockholders' equity | 3,551.40 | 3,397.40 | |||
Total liabilities and stockholders' equity | 5,504.70 | 5,602.30 | |||
Combined Guarantor Subsidiaries | |||||
Assets: | |||||
Cash and cash equivalents | 2.4 | 11.1 | 0.7 | 2.1 | |
Short-term marketable securities | 0 | 0 | |||
Receivables, net of allowance | 377.7 | 226.5 | |||
Income tax receivable | 0 | ||||
Inventory | 837.1 | 878.3 | |||
Property, plant, and equipment, net | 1,126.10 | 843.8 | |||
Investments in and advances to subsidiaries | 3,262.30 | 3,435.20 | |||
Restricted cash | 0 | 0 | |||
Goodwill and other assets | 618.5 | 610.9 | |||
Assets | 6,224.10 | 6,005.80 | |||
Liabilities: | |||||
Accounts payable | 168.1 | 174.4 | |||
Accrued liabilities | 238.7 | 300.1 | |||
Debt | 38.3 | 39.1 | |||
Deferred income | 27.2 | 34.5 | |||
Deferred income taxes | 632.8 | 636.9 | |||
Advances from subsidiaries | 0 | 0 | |||
Other liabilities | 13 | 13.7 | |||
Total stockholders' equity | 5,106 | 4,807.10 | |||
Total liabilities and stockholders' equity | 6,224.10 | 6,005.80 | |||
Combined Non-Guarantor Subsidiaries | |||||
Assets: | |||||
Cash and cash equivalents | 76.9 | 89.4 | 50.2 | 44 | |
Short-term marketable securities | 0 | 0 | |||
Receivables, net of allowance | 168.2 | 179.2 | |||
Income tax receivable | 0 | 0 | |||
Inventory | 228.2 | 208.1 | |||
Property, plant, and equipment, net | 4,541.90 | 4,594.10 | |||
Investments in and advances to subsidiaries | 0 | 3 | |||
Restricted cash | 174 | 194.4 | |||
Goodwill and other assets | 322.5 | 339.7 | |||
Assets | 5,511.70 | 5,607.90 | |||
Liabilities: | |||||
Accounts payable | 114 | 106.6 | |||
Accrued liabilities | 148.9 | 173.7 | |||
Debt | 2,654.30 | 2,724.40 | |||
Deferred income | 1.9 | 1.9 | |||
Deferred income taxes | 9.6 | 9.3 | |||
Advances from subsidiaries | 0 | 0 | |||
Other liabilities | 3.1 | 3.1 | |||
Total stockholders' equity | 2,579.90 | 2,588.90 | |||
Total liabilities and stockholders' equity | 5,511.70 | 5,607.90 | |||
Eliminations | |||||
Assets: | |||||
Cash and cash equivalents | -37.1 | -40.3 | -29.8 | -27.4 | |
Short-term marketable securities | 0 | 0 | |||
Receivables, net of allowance | -1 | -0.4 | |||
Income tax receivable | 0 | 0 | |||
Inventory | -20 | -18 | |||
Property, plant, and equipment, net | -548.6 | -564.3 | |||
Investments in and advances to subsidiaries | -7,920 | -7,869.30 | |||
Restricted cash | 37.1 | 40.3 | |||
Goodwill and other assets | -28.5 | -30.2 | |||
Assets | -8,518.10 | -8,482.20 | |||
Liabilities: | |||||
Accounts payable | -1.6 | -0.6 | |||
Accrued liabilities | 0 | 0 | |||
Debt | 0 | 0 | |||
Deferred income | 0 | 0 | |||
Deferred income taxes | -11.8 | -13.6 | |||
Advances from subsidiaries | -818.8 | -1,072 | |||
Other liabilities | 0 | 0 | |||
Total stockholders' equity | -7,685.90 | -7,396 | |||
Total liabilities and stockholders' equity | ($8,518.10) | ($8,482.20) | |||
[1] | (unaudited) |
Financial_Statements_for_Guara4
Financial Statements for Guarantors of the Senior Notes (Details 2) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Operating activities: | |||
Net income | $189 | $233 | |
Equity in earnings of subsidiaries, net of taxes | 0 | 0 | |
Other | -79.6 | -27.7 | |
Net cash provided (required) by operating activities | 109.4 | 205.3 | |
Investing activities: | |||
(Increase) decrease in short-term marketable securities | -25 | -106.7 | |
Proceeds from railcar lease fleet sales | 78.5 | 224.3 | |
Proceeds from disposition of property, plant, equipment, and other assets | 1.6 | 17.2 | |
Capital expenditures – leasing | -283.4 | 0.4 | |
Capital expenditures – manufacturing and other | -53.5 | -49.1 | |
Acquisitions, net of cash acquired | -45.5 | -112.6 | |
(Increase) decrease in investment in partially-owned subsidiaries | 0 | 0 | |
Other | 4.2 | 2.9 | |
Net cash provided (required) by investing activities | -323.1 | -23.6 | |
Financing activities: | |||
Proceeds from issuance of common stock, net | 0 | 0.3 | |
Excess tax benefits from stock-based compensation | 0.4 | 0.4 | |
Payments to retire debt | -70.9 | -53.1 | |
(Increase) decrease in restricted cash | 33 | 4.3 | |
Shares repurchased | -18 | -12.5 | |
Dividends paid to common shareholders | -15.6 | -11.6 | |
Purchase of shares to satisfy employee tax on vested stock | -0.4 | -0.1 | |
Distributions to noncontrolling interest | -11.3 | -5.4 | |
Distributions to controlling interest in partially-owned subsidiaries | 0 | 0 | |
Change in intercompany financing between entities | 0 | 0 | |
Other | -0.7 | -0.3 | |
Net cash provided (required) by financing activities | -83.5 | -78 | |
Net increase (decrease) in cash and cash equivalents | -297.2 | 103.7 | |
Cash and cash equivalents at beginning of period | 887.9 | 428.5 | |
Cash and cash equivalents at end of period | 590.7 | [1] | 532.2 |
Parent | |||
Operating activities: | |||
Net income | 180.2 | 226.4 | |
Equity in earnings of subsidiaries, net of taxes | -196.8 | -252.4 | |
Other | 81.8 | 86 | |
Net cash provided (required) by operating activities | 65.2 | 60 | |
Investing activities: | |||
(Increase) decrease in short-term marketable securities | -25 | -106.7 | |
Proceeds from railcar lease fleet sales | 0 | 0 | |
Proceeds from disposition of property, plant, equipment, and other assets | 0 | 0.4 | |
Capital expenditures – leasing | 0 | 0 | |
Capital expenditures – manufacturing and other | -1.8 | -3.3 | |
Acquisitions, net of cash acquired | 0 | 0 | |
(Increase) decrease in investment in partially-owned subsidiaries | 0 | 0 | |
Other | 0 | 1 | |
Net cash provided (required) by investing activities | -26.8 | -108.6 | |
Financing activities: | |||
Proceeds from issuance of common stock, net | 0 | 0.3 | |
Excess tax benefits from stock-based compensation | 0.4 | 0.4 | |
Payments to retire debt | 0 | 0 | |
(Increase) decrease in restricted cash | 0 | 0 | |
Shares repurchased | -18 | -12.5 | |
Dividends paid to common shareholders | -15.6 | -11.6 | |
Purchase of shares to satisfy employee tax on vested stock | -0.4 | -0.1 | |
Distributions to noncontrolling interest | 0 | 0 | |
Distributions to controlling interest in partially-owned subsidiaries | 0 | ||
Change in intercompany financing between entities | -284 | 173.4 | |
Other | 0 | 0 | |
Net cash provided (required) by financing activities | -317.6 | 149.9 | |
Net increase (decrease) in cash and cash equivalents | -279.2 | 101.3 | |
Cash and cash equivalents at beginning of period | 827.7 | 409.8 | |
Cash and cash equivalents at end of period | 548.5 | 511.1 | |
Combined Guarantor Subsidiaries | |||
Operating activities: | |||
Net income | 181.7 | 242.3 | |
Equity in earnings of subsidiaries, net of taxes | -68.3 | -68.1 | |
Other | -181.7 | -89 | |
Net cash provided (required) by operating activities | -68.3 | 85.2 | |
Investing activities: | |||
(Increase) decrease in short-term marketable securities | 0 | 0 | |
Proceeds from railcar lease fleet sales | 15.7 | 146 | |
Proceeds from disposition of property, plant, equipment, and other assets | 0 | 0 | |
Capital expenditures – leasing | -290 | 1.9 | |
Capital expenditures – manufacturing and other | -11.5 | -7.6 | |
Acquisitions, net of cash acquired | 0 | 0 | |
(Increase) decrease in investment in partially-owned subsidiaries | 7.2 | 3.3 | |
Other | 0.7 | -1 | |
Net cash provided (required) by investing activities | -277.9 | 142.6 | |
Financing activities: | |||
Proceeds from issuance of common stock, net | 0 | 0 | |
Excess tax benefits from stock-based compensation | 0 | 0 | |
Payments to retire debt | -0.8 | -0.8 | |
(Increase) decrease in restricted cash | 0 | 0 | |
Shares repurchased | 0 | 0 | |
Dividends paid to common shareholders | 0 | 0 | |
Purchase of shares to satisfy employee tax on vested stock | 0 | 0 | |
Distributions to noncontrolling interest | 0 | 0 | |
Distributions to controlling interest in partially-owned subsidiaries | 0 | 0 | |
Change in intercompany financing between entities | 339 | -228.1 | |
Other | -0.7 | -0.3 | |
Net cash provided (required) by financing activities | 337.5 | -229.2 | |
Net increase (decrease) in cash and cash equivalents | -8.7 | -1.4 | |
Cash and cash equivalents at beginning of period | 11.1 | 2.1 | |
Cash and cash equivalents at end of period | 2.4 | 0.7 | |
Combined Non-Guarantor Subsidiaries | |||
Operating activities: | |||
Net income | 89.7 | 85 | |
Equity in earnings of subsidiaries, net of taxes | 0 | 0 | |
Other | 35.7 | -22.1 | |
Net cash provided (required) by operating activities | 125.4 | 62.9 | |
Investing activities: | |||
(Increase) decrease in short-term marketable securities | 0 | 0 | |
Proceeds from railcar lease fleet sales | 78.2 | 109.7 | |
Proceeds from disposition of property, plant, equipment, and other assets | 1.6 | 16.8 | |
Capital expenditures – leasing | -8.8 | -32.9 | |
Capital expenditures – manufacturing and other | -40.2 | -38.2 | |
Acquisitions, net of cash acquired | -45.5 | -112.6 | |
(Increase) decrease in investment in partially-owned subsidiaries | 0 | 0 | |
Other | 3.5 | 2.9 | |
Net cash provided (required) by investing activities | -11.2 | -54.3 | |
Financing activities: | |||
Proceeds from issuance of common stock, net | 0 | 0 | |
Excess tax benefits from stock-based compensation | 0 | 0 | |
Payments to retire debt | -70.1 | -52.3 | |
(Increase) decrease in restricted cash | 29.8 | 6.7 | |
Shares repurchased | 0 | 0 | |
Dividends paid to common shareholders | 0 | 0 | |
Purchase of shares to satisfy employee tax on vested stock | 0 | 0 | |
Distributions to noncontrolling interest | -11.3 | -5.4 | |
Distributions to controlling interest in partially-owned subsidiaries | -7.2 | -3.3 | |
Change in intercompany financing between entities | -67.9 | 51.9 | |
Other | 0 | 0 | |
Net cash provided (required) by financing activities | -126.7 | -2.4 | |
Net increase (decrease) in cash and cash equivalents | -12.5 | 6.2 | |
Cash and cash equivalents at beginning of period | 89.4 | 44 | |
Cash and cash equivalents at end of period | 76.9 | 50.2 | |
Eliminations | |||
Operating activities: | |||
Net income | -262.6 | -320.7 | |
Equity in earnings of subsidiaries, net of taxes | 265.1 | 320.5 | |
Other | -15.4 | -2.6 | |
Net cash provided (required) by operating activities | -12.9 | -2.8 | |
Investing activities: | |||
(Increase) decrease in short-term marketable securities | 0 | 0 | |
Proceeds from railcar lease fleet sales | -15.4 | -31.4 | |
Proceeds from disposition of property, plant, equipment, and other assets | 0 | 0 | |
Capital expenditures – leasing | 15.4 | 31.4 | |
Capital expenditures – manufacturing and other | 0 | 0 | |
Acquisitions, net of cash acquired | 0 | 0 | |
(Increase) decrease in investment in partially-owned subsidiaries | -7.2 | -3.3 | |
Other | 0 | 0 | |
Net cash provided (required) by investing activities | -7.2 | -3.3 | |
Financing activities: | |||
Proceeds from issuance of common stock, net | 0 | 0 | |
Excess tax benefits from stock-based compensation | 0 | 0 | |
Payments to retire debt | 0 | 0 | |
(Increase) decrease in restricted cash | 3.2 | -2.4 | |
Shares repurchased | 0 | 0 | |
Dividends paid to common shareholders | 0 | 0 | |
Purchase of shares to satisfy employee tax on vested stock | 0 | 0 | |
Distributions to noncontrolling interest | 0 | 0 | |
Distributions to controlling interest in partially-owned subsidiaries | 7.2 | 3.3 | |
Change in intercompany financing between entities | 12.9 | 2.8 | |
Other | 0 | 0 | |
Net cash provided (required) by financing activities | 23.3 | 3.7 | |
Net increase (decrease) in cash and cash equivalents | 3.2 | -2.4 | |
Cash and cash equivalents at beginning of period | -40.3 | -27.4 | |
Cash and cash equivalents at end of period | ($37.10) | ($29.80) | |
[1] | (unaudited) |
Financial_Statements_for_Guara5
Financial Statements for Guarantors of the Senior Notes (Details Textual) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Millions, unless otherwise specified | |||
Condensed Financial Statements, Captions [Line Items] | |||
Restricted cash | $211.10 | [1] | $234.70 |
Assets | 8,722.40 | [1] | 8,733.80 |
Combined Non-Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Restricted cash | 174 | 194.4 | |
Equipment securing certain non-recourse debt | 3,856.60 | 3,936.80 | |
Equipment securing certain lease obligations | 71.3 | 87.5 | |
Assets | 5,511.70 | 5,607.90 | |
Combined Non-Guarantor Subsidiaries | Foreign locations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Assets | $370.10 | $395.50 | |
[1] | (unaudited) |