Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 15, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TRINITY INDUSTRIES INC | |
Entity Central Index Key | 99,780 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 152,855,266 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Total revenues | $ 1,542.2 | $ 1,562.8 | $ 4,845.7 | $ 4,508.6 |
Cost of revenues: | ||||
Total cost of revenues | 1,109.4 | 1,172.2 | 3,540.1 | 3,344.5 |
Selling, engineering, and administrative expenses: | ||||
Total selling, engineering, and administrative expenses | 126.6 | 113 | 339.3 | 293 |
Gains on dispositions of property: | ||||
Net gains on railcar lease fleet sales owned more than one year at the time of sale | 57.8 | 3 | 102.8 | 90.2 |
Other | 0.9 | 0.6 | 11.8 | 13.2 |
Total gains on disposition of property | 58.7 | 3.6 | 114.6 | 103.4 |
Total operating profit | 364.9 | 281.2 | 1,080.9 | 974.5 |
Other (income) expense: | ||||
Interest income | (0.6) | (0.4) | (1.6) | (1.5) |
Interest expense | 46.7 | 48.2 | 148.8 | 141.4 |
Other, net | (1) | (1.6) | (4) | (2.9) |
Total other (income) expense | 45.1 | 46.2 | 143.2 | 137 |
Income before income taxes | 319.8 | 235 | 937.7 | 837.5 |
Provision for income taxes | 107.6 | 78.1 | 315.7 | 274.5 |
Net income | 212.2 | 156.9 | 622 | 563 |
Net income attributable to noncontrolling interest | 7.9 | 7.5 | 25.5 | 23 |
Net income attributable to Trinity Industries, Inc. | $ 204.3 | $ 149.4 | $ 596.5 | $ 540 |
Net income attributable to Trinity Industries, Inc. per common share: | ||||
Basic (in dollars per share) | $ 1.32 | $ 0.96 | $ 3.84 | $ 3.46 |
Diluted (in dollars per share) | $ 1.31 | $ 0.91 | $ 3.78 | $ 3.33 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 150 | 151.5 | 150.6 | 150.9 |
Diluted (in shares) | 150.9 | 159.6 | 153.1 | 157 |
Dividends declared per common share (in dollars per share) | $ 0.11 | $ 0.1 | $ 0.32 | $ 0.275 |
Manufacturing | ||||
Revenues: | ||||
Total revenues | $ 1,295.6 | $ 1,359.8 | $ 4,123.5 | $ 3,638 |
Cost of revenues: | ||||
Total cost of revenues | 976 | 1,062.6 | 3,162.3 | 2,827.5 |
Selling, engineering, and administrative expenses: | ||||
Total selling, engineering, and administrative expenses | 71.5 | 64.2 | 202.2 | 169.7 |
Leasing | ||||
Revenues: | ||||
Total revenues | 246.6 | 203 | 722.2 | 870.6 |
Cost of revenues: | ||||
Total cost of revenues | 133.4 | 109.6 | 377.8 | 517 |
Selling, engineering, and administrative expenses: | ||||
Total selling, engineering, and administrative expenses | 15.4 | 12.1 | 38.4 | 33.8 |
Other | ||||
Selling, engineering, and administrative expenses: | ||||
Total selling, engineering, and administrative expenses | $ 39.7 | $ 36.7 | $ 98.7 | $ 89.5 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 212.2 | $ 156.9 | $ 622 | $ 563 |
Derivative financial instruments: | ||||
Unrealized losses arising during the period, net of tax expense (benefit) of $(0.2), $-, $(0.4), and $(0.5) | (0.5) | 0.1 | (0.8) | (0.9) |
Reclassification adjustments for losses included in net income, net of tax benefit of $0.2, $1.9, $3.3, and $6.6 | 1.2 | 4.2 | 7.6 | 11.9 |
Currency translation adjustment | (2.6) | (0.6) | (5.2) | (0.6) |
Defined benefit plans: | ||||
Amortization of net actuarial losses, net of tax benefit of $0.5, $0.3, $1.5, and $0.5 | 0.8 | 0.7 | 2.4 | 1.1 |
Other comprehensive income | (1.1) | 4.4 | 4 | 11.5 |
Comprehensive income | 211.1 | 161.3 | 626 | 574.5 |
Less: comprehensive income attributable to noncontrolling interest | 8.4 | 8.6 | 27.5 | 25.4 |
Comprehensive income attributable to Trinity Industries, Inc. | $ 202.7 | $ 152.7 | $ 598.5 | $ 549.1 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized losses arising during the period, tax expense (benefit) | $ (0.2) | $ 0 | $ (0.4) | $ (0.5) |
Reclassification adjustments for losses included in net income, tax benefit | 0.2 | 1.9 | 3.3 | 6.6 |
Amortization of net actuarial losses, tax benefit | $ 0.5 | $ 0.3 | $ 1.5 | $ 0.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | ||
ASSETS | ||||
Cash and cash equivalents | $ 677.8 | [1] | $ 887.9 | |
Short-term marketable securities | 0 | [1] | 75 | |
Receivables, net of allowance | 481.7 | [1] | 405.3 | |
Income tax receivable | 26.2 | [1] | 58.6 | |
Inventories: | ||||
Raw materials and supplies | 515.9 | [1] | 585.4 | |
Work in process | 280.4 | [1] | 298.2 | |
Finished goods | 224.6 | [1] | 184.8 | |
Inventory, net | 1,020.9 | [1] | 1,068.4 | |
Restricted cash, including partially-owned subsidiaries of $90.5 and $91.9 | 211.8 | [1] | 234.7 | |
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $2,261.3 and $2,261.2 | 7,111 | [1] | 6,586 | |
Less accumulated depreciation, including partially-owned subsidiaries of $308.8 and $261.3 | (1,802.6) | [1] | (1,683.1) | |
Property, plant, and equipment, net | 5,308.4 | [1] | 4,902.9 | |
Goodwill | 754.3 | [1] | 773.2 | [2] |
Other assets | 324.2 | [1] | 327.8 | |
Total assets | 8,805.3 | [1] | 8,733.8 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accounts payable | 294.6 | [1] | 295.4 | |
Accrued liabilities | 557.5 | [1] | 709.6 | |
Debt: | ||||
Recourse, net of unamortized discount of $48.3 and $60.0 | 838.3 | [1] | 829.3 | |
Non-recourse debt | 2,446.2 | 2,723.7 | ||
Total debt | 3,284.5 | [1] | 3,553 | |
Deferred income | 27.4 | [1] | 36.4 | |
Deferred income taxes | 665.8 | [1] | 632.6 | |
Other liabilities | 115.2 | [1] | 109.4 | |
Total liabilities | 4,945 | [1] | 5,336.4 | |
Stockholders’ equity: | ||||
Preferred stock – 1.5 shares authorized and unissued | 0 | [1] | 0 | |
Common stock – shares authorized – at September 30, 2015 – 400.0; at December 31, 2014 – 200.0 | 1.5 | [1] | 155.7 | |
Capital in excess of par value | 575.8 | [1] | 463.2 | |
Retained earnings | 3,037.2 | [1] | 2,489.9 | |
Accumulated other comprehensive loss | (109.9) | [1] | (111.9) | |
Treasury stock | (42.9) | [1] | (1) | |
Total stockholders' equity | 3,461.7 | [1] | 2,995.9 | |
Noncontrolling interest | 398.6 | [1] | 401.5 | |
Total stockholders' equity, including portion attributable to noncontrolling interest | 3,860.3 | [1] | 3,397.4 | |
Total liabilities and stockholders' equity | 8,805.3 | [1] | 8,733.8 | |
Wholly-owned subsidiaries | ||||
Debt: | ||||
Non-recourse debt | 982.1 | [1] | 1,207.8 | |
Partially-owned subsidiaries | ||||
Inventories: | ||||
Restricted cash, including partially-owned subsidiaries of $90.5 and $91.9 | 90.5 | [1] | 91.9 | |
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $2,261.3 and $2,261.2 | 2,261.3 | [1] | 2,261.2 | |
Less accumulated depreciation, including partially-owned subsidiaries of $308.8 and $261.3 | (308.8) | [1] | (261.3) | |
Debt: | ||||
Non-recourse debt | $ 1,464.1 | [1] | $ 1,515.9 | |
[1] | (unaudited) | |||
[2] | (as reported) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | [1] | Dec. 31, 2014 |
Unamortized discount | $ 48.3 | $ 60 | |
Preferred stock, shares authorized | 1,500,000 | 1,500,000 | |
Preferred stock, shares issued | 0 | 0 | |
Common stock, shares authorized | 400,000,000 | 200,000,000 | |
Restricted cash | $ 211.8 | $ 234.7 | |
Property, plant, and equipment | 7,111 | 6,586 | |
Less accumulated depreciation | 1,802.6 | 1,683.1 | |
Partially-owned subsidiaries | |||
Restricted cash | 90.5 | 91.9 | |
Property, plant, and equipment | 2,261.3 | 2,261.2 | |
Less accumulated depreciation | $ 308.8 | $ 261.3 | |
[1] | (unaudited) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
Operating activities: | |||
Net income | $ 622 | $ 563 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 197.9 | 171.5 | |
Stock-based compensation expense | 46.3 | 38.1 | |
Excess tax benefits from stock-based compensation | (13.1) | (24.2) | |
Expense (benefit) for deferred income taxes | 13.8 | (61.2) | |
Net gains on railcar lease fleet sales owned more than one year at the time of sale | (102.8) | (90.2) | |
Gains on dispositions of property | (11.8) | (13.2) | |
Non-cash interest expense | 23 | 22.4 | |
Other | (1.1) | (3.6) | |
Changes in assets and liabilities: | |||
(Increase) decrease in receivables | (43.9) | (155.5) | |
(Increase) decrease in inventories | 50.7 | (226.3) | |
(Increase) decrease in restricted cash | (9.4) | 25 | |
(Increase) decrease in other assets | (16.1) | (34.2) | |
Increase (decrease) in accounts payable | (0.8) | 89 | |
Increase (decrease) in accrued liabilities | (128.7) | 28.7 | |
Increase (decrease) in other liabilities | 4.3 | 3.3 | |
Net cash provided (required) by operating activities | 630.3 | 332.6 | |
Investing activities: | |||
(Increase) decrease in short-term marketable securities | 75 | 149.7 | |
Proceeds from dispositions of property | 6.1 | 21.9 | |
Proceeds from railcar lease fleet sales owned more than one year at the time of sale | 313.4 | 257.4 | |
Capital expenditures – leasing, net of sold lease fleet railcars owned one year or less with a net cost of $150.0 and $295.4 | (642.2) | (170.4) | |
Capital expenditures – manufacturing and other | (145.1) | (170) | |
Acquisitions, net of cash acquired | (46.2) | (711.8) | |
Divestitures | 51.3 | 0 | |
Other | 4.8 | 2 | |
Net cash provided (required) by investing activities | (382.9) | (621.2) | |
Financing activities: | |||
Proceeds from issuance of common stock, net | 0.2 | 0.6 | |
Excess tax benefits from stock-based compensation | 13.1 | 24.2 | |
Payments to retire debt | (530.8) | (140.2) | |
Proceeds from issuance of debt | 242.4 | 727.4 | |
(Increase) decrease in restricted cash | 32.3 | (2.2) | |
Shares repurchased | (107.5) | (36.5) | |
Dividends paid to common shareholders | (48) | (38.7) | |
Purchase of shares to satisfy employee tax on vested stock | (27.4) | (38.5) | |
Contributions from noncontrolling interest | 0 | 49.6 | |
Distributions to noncontrolling interest | (30.4) | (19.3) | |
Other | (1.4) | (2.6) | |
Net cash provided (required) by financing activities | (457.5) | 523.8 | |
Net (decrease) increase in cash and cash equivalents | (210.1) | 235.2 | |
Cash and cash equivalents at beginning of period | 887.9 | 428.5 | |
Cash and cash equivalents at end of period | $ 677.8 | [1] | $ 663.7 |
[1] | (unaudited) |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (unaudited) (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Capital expenditures – leasing, net of sold railcars owned one year or less, net cost | $ 150 | $ 295.4 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (unaudited) - 9 months ended Sep. 30, 2015 - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Trinity Stockholders' Equity | Noncontrolling Interest | |
Beginning balance (in shares) at Dec. 31, 2014 | 155,700,000 | 100,000 | |||||||
Beginning balance at Dec. 31, 2014 | $ 3,397.4 | $ 155.7 | $ 463.2 | $ 2,489.9 | $ (111.9) | $ (1) | $ 2,995.9 | $ 401.5 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 622 | 596.5 | 596.5 | 25.5 | |||||
Other comprehensive income | 4 | 2 | 2 | 2 | |||||
Cash dividends on common stock | (49.2) | (49.2) | (49.2) | ||||||
Restricted shares, net, (in shares) | 2,100,000 | 1,000,000 | |||||||
Restricted shares, net | $ 18.9 | $ 0 | 49.2 | $ (30.3) | 18.9 | ||||
Shares repurchased (in shares) | (3,947,320) | (3,900,000) | |||||||
Shares repurchased | $ (115) | $ (115) | (115) | ||||||
Stock options exercised (in shares) | 0 | ||||||||
Stock options exercised | 0.2 | $ 0 | 0.2 | 0.2 | |||||
Excess tax benefits from stock-based compensation | 12.4 | 12.4 | 12.4 | ||||||
Distributions to noncontrolling interest | (30.4) | 0 | (30.4) | ||||||
Retirement of treasury stock (in shares) | (3,300,000) | (3,300,000) | |||||||
Retirement of treasury stock | 0 | $ 0 | (103.4) | $ (103.4) | 0 | ||||
Change in par value of common stock | 0 | $ (154.2) | 154.2 | 0 | |||||
Ending balance (in shares) at Sep. 30, 2015 | 154,500,000 | 1,700,000 | |||||||
Ending balance at Sep. 30, 2015 | $ 3,860.3 | [1] | $ 1.5 | $ 575.8 | $ 3,037.2 | $ (109.9) | $ (42.9) | $ 3,461.7 | $ 398.6 |
[1] | (unaudited) |
Consolidated Statement of Sto10
Consolidated Statement of Stockholders' Equity (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2015 | May. 31, 2015 | Apr. 30, 2015 |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock, Par Value (in dollars per share) | $ 0.01 | $ 1 | $ 0.01 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 September 30, 2015 , and the results of operations for the three and nine months ended September 30, 2015 and 2014 , and cash flows for the nine months ended September 30, 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 nine months ended September 30, 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 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, 1,556,516 shares and 3,947,320 shares, respectively, were repurchased during the three and nine months ended September 30, 2015 , at a cost of approximately $40.0 million and $115.0 million , respectively. During the three and nine months ended September 30, 2014 , the Company repurchased 407,100 shares and 747,246 shares, respectively, at a cost of approximately $19.0 million and $31.5 million , respectively. Certain shares of stock repurchased during September 2015, totaling $7.5 million , were cash settled in October 2015 in accordance with normal settlement practices. In May 2015 , the Company's stockholders approved amendments to the Company's Certificate of Incorporation increasing the number of authorized shares of common stock from 200 million to 400 million and reducing the par value of the Company's common stock to $0.01 per share from $1.00 per share. 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 May 2014, the Financial Accounting Standards Board ("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, 2017. We are currently evaluating the impact this standard will have 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 April 2015, the 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 September 2015, the FASB issued Accounting Standards Update No. 2015-16, “Simplifying the Accounting for Measurement Period Adjustments” (“ASU 2015-16”) which requires that adjustments to provisional amounts identified during the measurement period of a business combination be recognized in the reporting period in which those adjustments are determined, including the effect on earnings, if any, calculated as if the accounting had been completed at the acquisition date. This eliminates the previous requirement to retrospectively account for such adjustments. ASU 2015-16 also requires additional disclosures related to the income statement effects of adjustments to provisional amounts identified during the measurement period. ASU 2015-16 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 2015-16 will have a material impact 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 | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures The Company's acquisition and divestiture activities are summarized below: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Acquisitions: Purchase price $ — $ 593.0 $ 46.2 $ 718.3 Net cash paid $ — $ 593.0 $ 46.2 $ 711.8 Goodwill recorded $ — $ 410.2 $ — $ 496.3 Divestitures: Proceeds $ — $ — $ 51.3 $ — Gain recognized $ — $ — $ 8.2 $ — Goodwill charged off $ — $ — $ 17.3 $ — 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 September 30, 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. In June 2015, we sold the assets of our galvanizing business which included six facilities in Texas, Mississippi, and Louisiana, recognizing a gain of $8.2 million which is included in gains on other dispositions of property in the accompanying consolidated statements of operations. The assets and results of operations for this divestiture were included in the Construction Products Group. With regard to the acquisition of the assets of Meyer Steel Structures (“Meyer”) in August 2014, the purchase price allocation was finalized during the three-months ended September 30, 2015 as shown in the following table: September 30, (in millions) Accounts receivable $ 29.4 Inventories 35.2 Property, plant, and equipment 70.5 Goodwill 410.2 Other assets 76.0 Accounts payable (15.4 ) Accrued liabilities (10.3 ) Total net assets acquired $ 595.6 |
Fair Value Accounting
Fair Value Accounting | 9 Months Ended |
Sep. 30, 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 September 30, 2015 (in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 233.2 $ — $ — $ 233.2 Restricted cash 211.8 — — 211.8 Total assets $ 445.0 $ — $ — $ 445.0 Liabilities: Interest rate hedge: (1) Partially-owned subsidiaries $ — $ 2.2 $ — $ 2.2 Fuel derivative instruments (1) — 0.7 — 0.7 Total liabilities $ — $ 2.9 $ — $ 2.9 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 — 2.0 — 2.0 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: September 30, 2015 December 31, 2014 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (in millions) Recourse: Senior notes $ 399.6 $ 380.4 $ 399.6 $ 387.0 Convertible subordinated notes 449.5 529.6 449.5 593.9 Less: unamortized discount (47.9 ) (59.6 ) 401.6 389.9 Capital lease obligations 36.6 36.6 39.1 39.1 Other 0.5 0.5 0.7 0.7 838.3 947.1 829.3 1,020.7 Non-recourse: 2006 secured railcar equipment notes 209.0 225.6 223.0 245.6 Promissory notes — — 363.9 362.7 2009 secured railcar equipment notes 181.4 213.1 188.8 227.7 2010 secured railcar equipment notes 300.0 323.0 311.5 344.0 TILC warehouse facility 291.7 291.7 120.6 120.6 TRL 2012 secured railcar equipment notes (RIV 2013) 454.5 448.2 472.2 470.3 TRIP Master Funding secured railcar equipment notes 1,009.6 1,065.0 1,043.7 1,121.4 2,446.2 2,566.6 2,723.7 2,892.3 Total $ 3,284.5 $ 3,513.7 $ 3,553.0 $ 3,913.0 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 September 30, 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 September 30, 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 | 9 Months Ended |
Sep. 30, 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 related to manufacturing and dedicated to the specific manufacturing operations of a particular segment are included in the 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 September 30, 2015 Revenues Operating Profit (Loss) External Intersegment Total (in millions) Rail Group $ 747.2 $ 326.2 $ 1,073.4 $ 223.3 Construction Products Group 151.1 3.7 154.8 19.9 Inland Barge Group 164.8 — 164.8 28.1 Energy Equipment Group 229.6 59.9 289.5 44.8 Railcar Leasing and Management Services Group 246.6 2.6 249.2 158.2 All Other 2.9 26.2 29.1 (3.0 ) Segment Totals before Eliminations and Corporate 1,542.2 418.6 1,960.8 471.3 Corporate — — — (39.7 ) Eliminations – Lease subsidiary — (308.4 ) (308.4 ) (65.6 ) Eliminations – Other — (110.2 ) (110.2 ) (1.1 ) Consolidated Total $ 1,542.2 $ — $ 1,542.2 $ 364.9 Three Months Ended September 30, 2014 Revenues Operating Profit (Loss) External Intersegment Total (in millions) Rail Group $ 802.3 $ 194.1 $ 996.4 $ 186.4 Construction Products Group 168.4 2.0 170.4 21.6 Inland Barge Group 168.4 — 168.4 31.0 Energy Equipment Group 219.0 50.7 269.7 30.0 Railcar Leasing and Management Services Group 203.0 2.7 205.7 87.0 All Other 1.7 27.2 28.9 (3.3 ) Segment Totals before Eliminations and Corporate 1,562.8 276.7 1,839.5 352.7 Corporate — — — (36.7 ) Eliminations – Lease subsidiary — (186.5 ) (186.5 ) (34.3 ) Eliminations – Other — (90.2 ) (90.2 ) (0.5 ) Consolidated Total $ 1,562.8 $ — $ 1,562.8 $ 281.2 Nine Months Ended September 30, 2015 Revenues Operating Profit (Loss) External Intersegment Total (in millions) Rail Group $ 2,506.8 $ 821.4 $ 3,328.2 $ 663.7 Construction Products Group 411.4 7.5 418.9 49.5 Inland Barge Group 505.7 — 505.7 96.3 Energy Equipment Group 694.4 177.1 871.5 118.3 Railcar Leasing and Management Services Group 722.2 9.9 732.1 418.7 All Other 5.2 78.8 84.0 (4.6 ) Segment Totals before Eliminations and Corporate 4,845.7 1,094.7 5,940.4 1,341.9 Corporate — — — (98.7 ) Eliminations – Lease subsidiary — (782.9 ) (782.9 ) (163.8 ) Eliminations – Other — (311.8 ) (311.8 ) 1.5 Consolidated Total $ 4,845.7 $ — $ 4,845.7 $ 1,080.9 Nine Months Ended September 30, 2014 Revenues Operating Profit (Loss) External Intersegment Total (in millions) Rail Group $ 2,164.1 $ 585.3 $ 2,749.4 $ 529.9 Construction Products Group 430.5 4.7 435.2 65.7 Inland Barge Group 470.7 — 470.7 88.6 Energy Equipment Group 569.2 138.7 707.9 81.2 Railcar Leasing and Management Services Group 870.6 9.7 880.3 419.7 All Other 3.5 76.7 80.2 (11.3 ) Segment Totals before Eliminations and Corporate 4,508.6 815.1 5,323.7 1,173.8 Corporate — — — (89.5 ) Eliminations – Lease subsidiary — (564.2 ) (564.2 ) (110.5 ) Eliminations – Other — (250.9 ) (250.9 ) 0.7 Consolidated Total $ 4,508.6 $ — $ 4,508.6 $ 974.5 |
Partially-Owned Leasing Subsidi
Partially-Owned Leasing Subsidiaries | 9 Months Ended |
Sep. 30, 2015 | |
Noncontrolling Interest [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 September 30, 2015 , the Company's carrying value of its investment in TRIP Holdings and RIV 2013 totaled $227.0 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 that 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 September 30, 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 | 9 Months Ended |
Sep. 30, 2015 | |
Leases [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: September 30, 2015 Leasing Group Wholly- Owned Subsidiaries Partially-Owned Subsidiaries Manufacturing/ Corporate Total (in millions) Cash, cash equivalents, and short-term marketable securities $ 2.5 $ — $ 675.3 $ 677.8 Property, plant, and equipment, net $ 3,064.3 $ 1,952.5 $ 933.7 $ 5,950.5 Net deferred profit on railcars sold to the Leasing Group (642.1 ) Consolidated property, plant and equipment, net $ 5,308.4 Restricted cash $ 121.3 $ 90.5 $ — $ 211.8 Debt: Recourse $ 36.6 $ — $ 850.0 $ 886.6 Less: unamortized discount — — (48.3 ) (48.3 ) 36.6 — 801.7 838.3 Non-recourse 982.1 1,464.1 — 2,446.2 Total debt $ 1,018.7 $ 1,464.1 $ 801.7 $ 3,284.5 Net deferred tax liabilities $ 656.7 $ 0.9 $ (8.0 ) $ 649.6 December 31, 2014 Leasing Group Wholly- Owned Subsidiaries Partially-Owned Subsidiaries Manufacturing/ Corporate Total (in millions) Cash, cash equivalents, and short-term marketable securities $ 11.9 $ — $ 951.0 $ 962.9 Property, plant, and equipment, net $ 2,599.2 $ 1,999.9 $ 861.0 $ 5,460.1 Net deferred profit on railcars sold to the Leasing Group (557.2 ) Consolidated property, plant and equipment, net $ 4,902.9 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 1,207.8 1,515.9 — 2,723.7 Total debt $ 1,246.9 $ 1,515.9 $ 790.2 $ 3,553.0 Net deferred tax liabilities $ 658.2 $ 0.9 $ (44.1 ) $ 615.0 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 September 30, Nine Months Ended September 30, 2015 2014 Percent 2015 2014 Percent ($ in millions) Change ($ in millions) Change Revenues: Leasing and management $ 176.6 $ 158.3 11.6 % $ 520.9 $ 469.2 11.0 % Sales of railcars owned one year or less at the time of sale 72.6 47.4 * 211.2 411.1 * Total revenues $ 249.2 $ 205.7 21.1 $ 732.1 $ 880.3 (16.8 ) Operating profit: Leasing and management $ 81.8 $ 74.4 9.9 $ 254.7 $ 213.8 19.1 Railcar sales: Railcars owned one year or less at the time of sale 18.6 9.6 61.2 115.7 Railcars owned more than one year at the time of sale 57.8 3.0 102.8 90.2 Total operating profit $ 158.2 $ 87.0 81.8 $ 418.7 $ 419.7 (0.2 ) Operating profit margin: Leasing and management 46.3 % 47.0 % 48.9 % 45.6 % Railcar sales * * * * Total operating profit margin 63.5 % 42.3 % 57.2 % 47.7 % Selected expense information (1) : Depreciation $ 35.9 $ 32.4 10.8 $ 105.8 $ 97.1 9.0 Maintenance $ 24.6 $ 17.8 38.2 $ 65.9 $ 58.8 12.1 Rent $ 9.9 $ 13.1 (24.4 ) $ 31.3 $ 39.7 (21.2 ) Interest $ 32.5 $ 39.1 (16.9 ) $ 106.8 $ 114.5 (6.7 ) * 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 profit 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 nine months ended September 30, 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: Nine Months Ended September 30, 2015 2014 (in millions) Leasing Group: Railcars owned one year or less at the time of sale $ 182.7 $ 378.8 Railcars owned more than one year at the time of sale 258.0 235.7 Rail Group 175.8 153.4 $ 616.5 $ 767.9 Since the inception of our alliance, the Company has received proceeds of $1,604.2 million from the sale of leased railcars to Element. On October 14, 2015, the Company and Element announced a $1 billion extension of the alliance through December 2019. 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 three months of 2015 2016 2017 2018 2019 Thereafter Total (in millions) Future contractual minimum rental revenue $ 137.1 $ 486.2 $ 412.0 $ 327.9 $ 242.9 $ 410.1 $ 2,016.2 Debt. The Leasing Group’s debt at September 30, 2015 consisted of both recourse and non-recourse debt. As of September 30, 2015 , Trinity’s wholly-owned subsidiaries included in the Leasing Group held equipment with a net book value of $1,474.2 million which is pledged as collateral for Leasing Group debt held by those subsidiaries, including equipment with a net book value of $44.5 million securing capital lease obligations. The net book value of unpledged equipment at September 30, 2015 was $1,522.4 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 their members. 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 $1,365.5 million is pledged as collateral for the TRIP Master Funding debt. TRL 2012 equipment with a net book value of $587.0 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 September 30, 2015 of $147.6 million , including cash of $53.8 million and railcars of $67.0 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 three months of 2015 2016 2017 2018 2019 Thereafter Total (in millions) Future operating lease obligations of Trusts’ railcars $ 7.4 $ 29.3 $ 29.2 $ 29.2 $ 28.8 $ 170.2 $ 294.1 Future contractual minimum rental revenues of Trusts’ railcars $ 13.2 $ 47.4 $ 38.9 $ 29.2 $ 20.1 $ 35.0 $ 183.8 Operating Lease Obligations. Future amounts due as well as future contractual minimum rental revenues related to operating leases other than leases discussed above are as follows: Remaining three months of 2015 2016 2017 2018 2019 Thereafter Total (in millions) Future operating lease obligations $ 3.2 $ 12.8 $ 12.1 $ 12.0 $ 9.5 $ 28.7 $ 78.3 Future contractual minimum rental revenues $ 5.3 $ 19.3 $ 12.4 $ 7.2 $ 3.8 $ 5.9 $ 53.9 Operating lease obligations totaling $14.4 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 | 9 Months Ended |
Sep. 30, 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 swap at September 30, 2015 . See Note 11 Debt for a description of the Company's debt instruments. Interest rate hedges Included in accompanying balance sheet Notional Amount Interest Rate (1) Liability AOCL – loss/ (income) Noncontrolling Interest (in millions, except %) Expired hedges: 2006 secured railcar equipment notes $ 200.0 4.87 % $ — $ (1.1 ) $ — TRIP Holdings warehouse loan $ 788.5 3.60 % $ — $ 8.5 $ 11.4 Open hedge: TRIP Master Funding secured railcar equipment notes $ 48.8 2.62 % $ 2.2 $ 0.9 $ 1.2 (1) Weighted average fixed interest rate Effect on interest expense - increase/(decrease) Three Months Ended Nine Months Ended Expected effect during next twelve months (1) 2015 2014 2015 2014 (in millions) Expired hedges: 2006 secured railcar equipment notes $ — $ (0.1 ) $ (0.2 ) $ (0.3 ) $ (0.3 ) Promissory notes $ — $ 0.7 $ 1.2 $ 2.2 $ — TRIP Holdings warehouse loan $ 1.2 $ 1.3 $ 3.7 $ 3.9 $ 4.8 Open hedges: TRIP Master Funding secured railcar equipment notes $ 0.2 $ 0.4 $ 0.9 $ 1.2 $ 1.0 Promissory notes $ — $ 3.8 $ 5.3 $ 11.5 $ — (1) Based on the fair value of open hedges as of September 30, 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 were 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 was being amortized over the term of the related debt. These derivative instruments were fully amortized in May 2015 . The effect on interest expense is due to amortization of the AOCL balance. In 2008 , we entered into an interest rate swap derivative instrument to fix the variable Libor component of the Promissory Notes. This derivative instrument expired in May 2015 and was 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 $4.8 million of additional interest expense expected to be recognized during the twelve months following September 30, 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 September 30, 2015 for these instruments was a liability of $0.7 million . |
Property, Plant, and Equipment
Property, Plant, and Equipment | 9 Months Ended |
Sep. 30, 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 September 30, 2015 and December 31, 2014 . September 30, December 31, (in millions) Manufacturing/Corporate: Land $ 85.1 $ 81.4 Buildings and improvements 572.9 548.2 Machinery and other 1,066.0 975.7 Construction in progress 95.4 76.4 1,819.4 1,681.7 Less accumulated depreciation (885.7 ) (820.7 ) 933.7 861.0 Leasing: Wholly-owned subsidiaries: Machinery and other 10.7 10.7 Equipment on lease 3,661.7 3,189.6 3,672.4 3,200.3 Less accumulated depreciation (608.1 ) (601.1 ) 3,064.3 2,599.2 Partially-owned subsidiaries: Equipment on lease 2,261.3 2,261.2 Less accumulated depreciation (308.8 ) (261.3 ) 1,952.5 1,999.9 Net deferred profit on railcars sold to the Leasing Group (642.1 ) (557.2 ) $ 5,308.4 $ 4,902.9 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill by segment is as follows: September 30, December 31, (as reported) (in millions) Rail Group $ 134.6 $ 134.6 Construction Products Group 111.0 128.3 Energy Equipment Group 506.9 508.5 Railcar Leasing and Management Services Group 1.8 1.8 $ 754.3 $ 773.2 The decrease in the Construction Products Group goodwill as of September 30, 2015 is due to divestiture activities during the nine months ended September 30, 2015. See Note 2 Acquisitions and Divestitures. |
Warranties
Warranties | 9 Months Ended |
Sep. 30, 2015 | |
Product Warranties Disclosures [Abstract] | |
Warranties | Warranties The changes in the accruals for warranties for the three and nine months ended September 30, 2015 and 2014 are as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Beginning balance $ 20.5 $ 17.1 $ 17.8 $ 14.7 Warranty costs incurred (2.0 ) (1.7 ) (5.4 ) (3.8 ) Warranty originations and revisions 5.8 4.3 14.8 10.9 Warranty expirations (1.7 ) (0.7 ) (4.6 ) (2.8 ) Ending balance $ 22.6 $ 19.0 $ 22.6 $ 19.0 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the components of debt as of September 30, 2015 and December 31, 2014 : September 30, December 31, (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 $47.9 and $59.6 401.6 389.9 Other 0.5 0.7 801.7 790.2 Leasing – Recourse: Capital lease obligations 36.6 39.1 Total recourse debt 838.3 829.3 Leasing – Non-recourse: Wholly-owned subsidiaries: 2006 secured railcar equipment notes 209.0 223.0 Promissory notes — 363.9 2009 secured railcar equipment notes 181.4 188.8 2010 secured railcar equipment notes 300.0 311.5 TILC warehouse facility 291.7 120.6 982.1 1,207.8 Partially-owned subsidiaries: TRL 2012 secured railcar equipment notes (RIV 2013) 454.5 472.2 TRIP Master Funding secured railcar equipment notes 1,009.6 1,043.7 1,464.1 1,515.9 Total non–recourse debt 2,446.2 2,723.7 Total debt $ 3,284.5 $ 3,553.0 In May 2015, we renewed and extended our unsecured corporate revolving credit facility through May 2020 , increasing the size of the facility from $425.0 million to $600.0 million . As of September 30, 2015 , we had letters of credit issued under our revolving credit facility in an aggregate principal amount of $91.6 million , leaving $508.4 million available for borrowing. Other than these letters of credit, there were no borrowings under our revolving credit facility as of September 30, 2015 , or for the nine month period then ended. Of the outstanding letters of credit as of September 30, 2015 , approximately $3.5 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 September 30, 2015 , we were in compliance with all such financial covenants. Borrowings under the credit facility bear interest at a defined index rate plus a margin 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 September 30, 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 and nine months ended September 30, 2015 and 2014 is as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Coupon rate interest $ 4.4 $ 4.4 $ 13.1 $ 13.1 Amortized debt discount 4.0 3.7 11.7 10.8 $ 8.4 $ 8.1 $ 24.8 $ 23.9 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 $ 25.03 per share as of September 30, 2015 . The Convertible Subordinated Notes were not subject to conversion as of October 1, 2015 . 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. In May 2015, Trinity Rail Leasing VI LLC ("TRL VI"), a wholly-owned subsidiary of the Company owned through TILC, repaid the Promissory Notes in full for approximately $340.0 million . The Promissory Notes were issued by TRL VI in 2008 and secured by a diversified portfolio of leased railcars and certain cash reserves. The Promissory Notes had an effective interest rate of 5.63% , after consideration of interest rate hedges. Per the original terms of the Promissory Notes, the borrowing margin was scheduled to increase by 0.50% in May 2015. The TILC warehouse loan facility, established to finance railcars owned by TILC, had $291.7 million in outstanding borrowings as of September 30, 2015 . In April 2015 , the facility was increased to $1 billion and extended through April 2018 . Under the renewed facility, $708.3 million was unused and available as of September 30, 2015 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 2.01% at September 30, 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 September 30, 2015 , after considering the extension of the TILC Warehouse facility in April 2015, are as follows: Remaining three months of 2015 2016 2017 2018 2019 Thereafter (in millions) Recourse: Corporate $ — $ 0.2 $ 0.3 $ — $ — $ 849.5 Leasing – capital lease obligations (Note 6) 0.8 3.5 3.7 28.6 — — Non-recourse – leasing (Note 6): 2006 secured railcar equipment notes 4.9 21.8 23.9 25.3 28.0 105.1 2009 secured railcar equipment notes 2.2 6.5 6.3 6.4 11.2 148.8 2010 secured railcar equipment notes 3.8 14.9 13.7 10.0 7.6 250.0 TILC warehouse facility 2.4 9.8 9.8 9.8 2.4 — TRL 2012 secured railcar equipment notes (RIV 2013) 5.4 22.3 22.9 23.1 22.2 358.6 TRIP Master Funding secured railcar equipment notes 11.8 39.8 29.2 41.8 50.1 836.9 Facility termination payments - TILC warehouse facility — — — — 257.5 — Total principal payments $ 31.3 $ 118.8 $ 109.8 $ 145.0 $ 379.0 $ 2,548.9 |
Other, Net
Other, Net | 9 Months Ended |
Sep. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Other, Net | Other, Net Other, net (income) expense consists of the following items: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Foreign currency exchange transactions $ (0.5 ) $ (0.2 ) $ (2.3 ) $ (0.1 ) Gain (loss) on equity investments — (0.1 ) 0.1 (0.7 ) Other (0.5 ) (1.3 ) (1.8 ) (2.1 ) Other, net $ (1.0 ) $ (1.6 ) $ (4.0 ) $ (2.9 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 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 before income taxes: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Statutory rate 35.0 % 35.0 % 35.0 % 35.0 % State taxes 1.2 0.9 1.2 0.9 Domestic production activities deduction (1.7 ) (1.4 ) (1.8 ) (1.9 ) Noncontrolling interest in partially-owned subsidiaries (0.9 ) (1.0 ) (0.9 ) (1.1 ) State adjustments — 1.1 0.1 0.3 Other, net — (1.4 ) 0.1 (0.4 ) Effective rate 33.6 % 33.2 % 33.7 % 32.8 % 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 partially-owned leasing subsidiaries for which no income tax expense is provided. See Note 5 Partially-Owned Leasing Subsidiaries for a further explanation of activities with respect to our partially-owned leasing subsidiaries. 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 Mexico 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 July 2018 . 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 nine months ended September 30, 2015 and 2014 was as follows: Nine Months Ended 2015 2014 (in millions) Beginning balance $ 62.3 $ 55.0 Additions for tax positions related to the current year 4.1 3.7 Additions for tax positions of prior years — 0.3 Reductions for tax positions of prior years (0.1 ) (0.1 ) Settlements (0.7 ) — Ending balance $ 65.6 $ 58.9 Additions for tax positions related to the current year in the amounts of $4.1 million and $3.7 million recorded in the nine months ended September 30, 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. Additions for tax positions of prior years recorded for the nine months ended September 30, 2014 related to foreign tax positions. The reductions in tax positions of prior years of $0.1 million and $0.1 million for the nine months ended September 30, 2015 and 2014 , respectively, were primarily related to changes in state taxes. Settlements during the nine months ended September 30, 2015 were due to a state tax position effectively settled upon audit and a settlement of an audit of one of our Mexican companies. The total amount of unrecognized tax benefits including interest and penalties at September 30, 2015 and 2014 , that would affect the Company’s overall effective tax rate if recognized was $15.0 million and $14.2 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 September 30, 2015 and December 31, 2014 was $12.4 million and $11.6 million , respectively. Income tax expense for the three and nine months ended September 30, 2015 , included an increase in income tax expense of $0.3 million and $0.7 million in interest expense and penalties, respectively, related to uncertain tax positions. Income tax expense for the three and nine months ended September 30, 2014 , included an increase in income tax expense of $0.2 million and $0.6 million in interest expense and penalties, respectively, related to uncertain tax positions. |
Employee Retirement Plans
Employee Retirement Plans | 9 Months Ended |
Sep. 30, 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 Nine Months Ended 2015 2014 2015 2014 (in millions) Expense Components Defined benefit: Service cost $ 0.1 $ 0.2 $ 0.3 $ 0.4 Interest 5.0 5.1 15.0 15.1 Expected return on plan assets (7.6 ) (7.8 ) (22.8 ) (23.2 ) Amortization of actuarial loss 1.3 1.0 3.9 1.6 (1.2 ) (1.5 ) (3.6 ) (6.1 ) Profit sharing 4.5 3.9 14.9 12.8 Multiemployer plan 0.6 0.3 1.7 0.3 Net retirement cost $ 3.9 $ 2.7 $ 13.0 $ 7.0 Trinity contributed $7.4 million and $15.5 million to the Company's defined benefit pension plans for the three and nine months ended September 30, 2015 , respectively. Trinity contributed $4.1 million and $11.7 million to the Company's defined benefit pension plans for the three and nine months ended September 30, 2014 , respectively. Total contributions to the Company's defined benefit pension plans in 2015 are expected to be approximately $16.2 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 $0.6 million and $1.9 million to the multiemployer plan for the three and nine months ended September 30, 2015 , respectively. Total contributions to the multiemployer plan for 2015 are expected to be approximately $2.3 million . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss for the nine months ended September 30, 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 (5.2 ) (0.8 ) — (6.0 ) Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $3.3, $1.5, and $4.8 — 7.6 2.4 10.0 Less: noncontrolling interest — (2.0 ) — (2.0 ) Other comprehensive income (loss) (5.2 ) 4.8 2.4 2.0 Balances at September 30, 2015 $ (23.7 ) $ (1.8 ) $ (84.4 ) $ (109.9 ) 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 $3.2 million of the before-tax reclassification of net actuarial gains/(losses) of defined benefit plans are included in cost of revenues with the remainder included in selling, engineering, and administrative expenses in the consolidated statement of operations for the nine months ended September 30, 2015 . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation totaled approximately $15.0 million and $46.3 million for the three and nine months ended September 30, 2015 , respectively. Stock-based compensation totaled approximately $14.6 million and $38.1 million for the three and nine months ended September 30, 2014 , respectively. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 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 6.3 million shares and 6.9 million shares for the three and nine months ended September 30, 2015 , respectively. Total weighted average restricted shares and antidilutive stock options were 6.9 million shares and 7.6 million shares for the three and nine months ended September 30, 2014 , respectively. The computation of basic and diluted net income attributable to Trinity Industries, Inc. follows. Three Months Ended Three Months Ended Income (Loss) Average Shares EPS Income (Loss) Average Shares EPS (in millions, except per share amounts) Net income attributable to Trinity Industries, Inc. $ 204.3 $ 149.4 Unvested restricted share participation (6.0 ) (4.7 ) Net income attributable to Trinity Industries, Inc. – basic 198.3 150.0 $ 1.32 144.7 151.5 $ 0.96 Effect of dilutive securities: Stock options — — — 0.1 Convertible subordinated notes — 0.9 0.2 8.0 Net income attributable to Trinity Industries, Inc. – diluted $ 198.3 150.9 $ 1.31 $ 144.9 159.6 $ 0.91 Nine Months Ended Nine Months Ended Income (Loss) Average Shares EPS Income (Loss) Average Shares EPS (in millions, except per share amounts) Net income attributable to Trinity Industries, Inc. $ 596.5 $ 540.0 Unvested restricted share participation (18.2 ) (17.8 ) Net income attributable to Trinity Industries, Inc. – basic 578.3 150.6 $ 3.84 522.2 150.9 $ 3.46 Effect of dilutive securities: Stock options — — — 0.1 Convertible subordinated notes 0.3 2.5 0.6 6.0 Net income attributable to Trinity Industries, Inc. – diluted $ 578.6 153.1 $ 3.78 $ 522.8 157.0 $ 3.33 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Highway products litigation We previously reported the filing of a False Claims Act (“FCA”) 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 No. 2:12-cv-00089-JRG (E.D. Tex.). In this case, the relator, Mr. Joshua Harman, alleged the Company violated the FCA pertaining to sales of the Company's ET-Plus® System, a highway guardrail end-terminal (“ET Plus”). On October 20, 2014, a trial in this case concluded with a jury verdict stating that the Company and its subsidiary, Trinity Highway Products, LLC (“Trinity Highway Products”), “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. Following the jury verdict, the District Court ordered the parties to engage in good faith negotiations in an effort to reach a settlement of the matter. On June 9th, 2015, the parties reported to the District Court that despite mutual best efforts, the parties were not successful at resolving their disputes. On the same day, following denial of the Company’s post-verdict motion for judgment as a matter of law, the District Court entered judgment on the verdict in the total amount of $682.4 million , comprised of $175.0 million in damages, which amount is automatically trebled under the FCA to $525.0 million , plus $138.4 million in civil penalties and $19.0 million in costs and attorney’s fees. On June 23, 2015, the District Court approved the Company’s posting of a supersedeas bond in the amount of $686.0 million (the “Bond”) and ordered a stay of the execution of the District Court’s June 9, 2015 entry of judgment of $682.4 million against the Company pending resolution of all appeals. The Company obtained the Bond on an unsecured basis for an initial annual premium of $3.9 million . The Company maintains that Mr. Harman’s allegations are without merit. On July 7, 2015, the Company filed a Motion for New Trial with the District Court and on August 3, 2015, the Motion was denied. On August 28, 2015, the Company filed a Notice of Appeal to the United States Court of Appeals for the Fifth Circuit (“Fifth Circuit”). The Notice of Appeal, related filings, and any appellate review will result in legal expenses which are expensed as incurred. 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 crash test criteria 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 crash test performance of the ET Plus. These reports were reviewed by the Federal Highway Administration (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 October 2014 trial 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. We believe this reinforces our prospects for a successful outcome on appeal. 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. On October 24, 2014, due to the FHWA’s request for additional ET Plus crash tests, the Company announced that it would suspend shipment of the ET Plus to customers. The FHWA-requested tests were conducted in December 2014 and January 2015 at Southwest Research Institute, an FHWA-approved and independent research facility. Following completion of the first four tests at a 27 ¾" guardrail installation height, and again after completion of the second four tests at a 31" guardrail installation height, the FHWA reported that the ET Plus passed all tests. The eight test results validate Trinity Highway Products' long standing position that the ET Plus performs as tested for both guardrail installation heights when properly installed and maintained. 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 ("Task Force I"), comprised of representatives from the FHWA, AASHTO, the state Departments of Transportation of South Dakota, New Hampshire, Missouri, Ohio, Delaware, and Wyoming, and the Ministry of Transportation of Ontario, Canada, that evaluated field measurement data collected by FHWA engineers from more than 1,000 4-inch ET Plus devices installed on roadways throughout the country. Task Force I concluded there is no evidence to suggest that there are multiple versions of the 4-inch ET Plus on the nation's roadways. Task Force I also concluded that the ET Plus end terminals crash tested at Southwest Research Institute in December 2014 and January 2015 were representative of the devices installed across the country. The FHWA and AASHTO formed a second joint task force ("Task Force II”) comprised of representatives from the FHWA, AASHTO, the state Departments of Transportation of Iowa, Georgia, New Hampshire, North Carolina, New York, Michigan, Missouri, Delaware, and Utah, and independent experts to further evaluate the in-service performance of the ET Plus through the collection and analysis of a broad array of data. In a report dated September 11, 2015, the FHWA and AASHTO released certain findings, conclusions, and recommendations of Task Force II, including but not limited to, the following: there are no performance limitations unique to the ET Plus; there will be real-world conditions that exceed the performance expectations of all manufacturers’ guardrail end terminal systems; and additional crash testing of all existing Report 350 compliant guardrail end terminals, including the ET Plus, “would not be informative” and “would be irrelevant”. The Company's Notice of Appeal is pending, and the Company will vigorously pursue a reversal of the $682.4 million judgment before the Fifth Circuit. Based on information currently available to the Company including the significance of the successful completion of eight post-verdict crash tests of the ET Plus and the favorable findings and conclusions published by both Task Force I and II regarding ET Plus end terminal systems installed on the nation's roadways, we do not believe that a loss is probable in this matter, 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 represented approximately 0.6% and 1.1% of the Company’s consolidated revenues, respectively, for those years. There were no revenues from the sales of ET Plus systems for the nine months ended September 30, 2015 as a result of the Company’s action to suspend shipments of the product. The Company is currently receiving inquiries from customers for potential purchases of ET Plus systems, and will resume shipment of the product as orders are received and accepted. State, county, and municipal actions Trinity is aware of 40 states and the District of Columbia that have removed the ET Plus from their respective qualified products list. Mr. Harman filed a qui tam action pursuant to the Virginia Fraud Against Taxpayers Act (“VFATA”), entitled 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), alleging the Company violated the VFATA pertaining to sales of the ET Plus. The Commonwealth of Virginia, in addition to evaluating a potential replacement of certain ET Plus products installed on Virginia roadways, has intervened in Mr. Harman's Virginia state action. Mr. Harman and the Commonwealth of Virginia are seeking damages, civil penalties, attorneys’ fees, costs and interest. In September and October 2015, the Virginia Department of Transportation (“VDOT”) conducted a series of six crash tests on the ET Plus, the results of which have not yet been published. On September 18, 2015, TTI, the designer of the ET Plus technology, released a statement that it has no confidence in the six crash tests performed by VDOT. On October 1, 2015, TTI released a statement characterizing VDOT’s six crash tests as arbitrary and non-standard due to crash test inconsistencies with Report 350 testing and performance evaluation criteria. Mr. Harman has also filed five additional separate state qui tam actions pursuant to the Indiana False Claims and Whistleblower Protection Act ( State of Indiana ex rel. Joshua M. Harman Qui Tam v. Trinity Industries, Inc., and Trinity Highway Products, LLC , Case No. 49D06-1407-PL-024117, In the Sixth Court of Marion County, Indiana); the Delaware False Claims and Reporting Act ( State of Delaware ex rel. Joshua M. Harman v. Trinity Industries, Inc., and Trinity Highway Products, LLC , Civ. No. N14C-06-227 MMJ CCLD, In the Superior Court of the State of Delaware In and For New Castle County); the Iowa False Claims Act ( State of Iowa ex rel. Joshua M. Harman v. Trinity Industries, Inc., and Trinity Highway Products, LLC , Case No. CVCV048309, In the Iowa District Court for Polk County); the Rhode Island False Claims Act ( State of Rhode Island ex rel. Joshua M. Harman v. Trinity Industries, Inc., and Trinity Highway Products, LLC , Case No. 14-3498, In the Superior Court for the State of Rhode Island and Providence Plantations); and the Tennessee False Claims Act ( State of Tennessee ex rel. Joshua M. Harman v. Trinity Industries, Inc., and Trinity Highway Products, LLC , Case No. 14C2652, In the Circuit Court for Davidson County, Tennessee). In each of these five cases Mr. Harman is alleging the Company violated the respective state false claims act pertaining to sales of the ET Plus and he is seeking damages, civil penalties, attorneys’ fees, costs and interest. Also, in each of these five cases the respective states’ Attorney General filed its Notice of Election to Decline Intervention in the matter. At this time, with the exception of the State of Tennessee case, each of these cases is stayed. The Company believes these state qui tam lawsuits are without merit and intends to vigorously defend all allegations. Other states could take similar or different actions, and could be considering similar state false claims or other litigation against the Company. 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 No. 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. This lawsuit was previously stayed by order of the Court. On September 30, 2015, the Court lifted the stay on this action. 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 alleged 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 No. 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 county and municipal class action lawsuits are currently unknown, they could be material. Based on the information currently available to the Company, we currently do not believe that a loss is probable in any one or more of the actions described under "State, county, and municipal actions", therefore no accrual has been included in the accompanying consolidated financial statements. Because of the complexity of these actions as well as the current status of certain of these actions, we are not able to estimate a range of possible losses with respect to any one or more of these actions. Federal grand jury subpoena On April 28, 2015, the Company received a federal subpoena from the U.S. Department of Justice through the U.S. Attorney for the District of Massachusetts. The subpoena requests documents from 1999 through the present relating to the ET 2000 and ET Plus guardrail end-terminal products. The Company is cooperating with this request. Product liability cases 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 judgment in the FCA case, coupled with the media attention such judgment has generated, will prompt the plaintiff’s bar to seek out individuals 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 judgment exposures in these product liability cases. To the extent that the Company believes that a loss is probable with respect to these product liability cases, the accrual for such losses is included in the amounts described below under Other Matters. Shareholder class actions Thomas Nemky, Individually and On Behalf of All Other Similarly Situated v. Trinity Industries, Inc., Timothy R. Wallace, and James E. Perry , Case No. (2:15-CV-00732) was filed in U.S. District Court in the Eastern District of Texas on May 15, 2015 (“Nemky”). Richard J. Isolde, Individually and On Behalf of All Other Similarly Situated v. Trinity Industries, Inc., Timothy R. Wallace, and James E. Perry, Case No. (3:15-CV-2093) was filed in U.S. District Court in the Northern District of Texas on June 19, 2015 (“Isolde”). The complaints in the Nemky and Isolde cases allege that defendants Trinity Industries, Inc., Timothy R. Wallace, and James E. Perry violated Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 promulgated thereunder, and Section 20(a) of the Securities Exchange Act of 1934 by making materially false and misleading statements and/or by failing to disclose material facts about Trinity’s ET Plus and the FCA case styled Joshua Harman, on behalf of the United States of America, Plaintiff/Relator v. Trinity Industries, Inc., Defendant , Case No. 2:12-cv-00089-JRG (E.D. Tex.) . On September 21, 2015, the District Court in the Eastern District of Texas appointed the Department of the Treasury of the State of New Jersey and its Division of Investment as the lead plaintiff in the Nemky case. On October 5, 2015, the District Court in the Eastern District of Texas granted the Company’s, Mr. Wallace’s, and Mr. Perry’s motion to transfer venue to the Northern District of Texas in the Nemky case. Pending before the court in the Isolde case is a motion by the Department of the Treasury of the State of New Jersey and its Division of Investment to transfer venue to the Eastern District of Texas. Trinity, Mr. Wallace, and Mr. Perry deny and intend to vigorously defend against the allegations in the Nemky and Isolde matters. Based on the information available to the Company, we currently do not believe that a loss is probable with respect to these shareholder class actions; therefore no accrual has been included in the accompanying consolidated financial statements. Because of the complexity of these actions as well as the current status of certain of these actions, we are not able to estimate a range of possible losses with respect to these matters. Stockholder books and records requests The Company has received multiple requests from stockholders pursuant to the Delaware General Corporation Law to review certain of the Company's books and records related to the ET Plus and the FCA case styled Joshua Harman, on behalf of the United States of America, Plaintiff/Relator v. Trinity Industries, Inc., Defendant , Case No. 2:12-cv-00089-JRG (E.D. Tex.) . The stockholders' stated purpose for seeking access to the Company's books and records is to investigate the possibility of whether the directors or officers of the Company committed breaches of fiduciary duty, or other wrongdoing, in connection with the ET Plus. In accordance with the Company's obligations under the Delaware law when such requests are properly filed, the Company has provided books and records to some of those stockholders. 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 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 resulted in a stay of all proceedings in the transferred cases pending resolution of the appeal. This stay was recently lifted to permit certain plaintiffs to file new or amended suits before the expiration of applicable statutes of limitation. These new and amended proceedings name the Company among numerous other defendants and have been filed in Illinois, Texas and Maine. 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. These actions are constructively stayed to permit the settlement approval process to continue. As of October 9, 2015 the Canadian and U.S. Bankruptcy courts have approved the proposed plan of liquidation of the involved railroad which includes provisions approving the settlement of the Company. This plan is now before the District Court of Maine for an order confirming the plan. 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, though the approved plan of liquidation would bar such litigation. The Company maintains liability insurance coverage to protect the Company’s assets from losses arising from this type of litigation, and the Company is not expected to incur significant out-of-pocket costs in connection with these matters that would be material to its consolidated financial statements. 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 $7.0 million to $26.8 million . This range excludes any amount related to the highway products litigation matters described above except for amounts related to matters described above in the section titled “Product liability cases”. At September 30, 2015 , total accruals of $29.3 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 $5.0 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 Guaran
Financial Statements for Guarantors of the Senior Notes | 9 Months Ended |
Sep. 30, 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 Industries Leasing Company; Trinity Marine Products, Inc.; Trinity North American Freight Car, Inc.; Trinity Rail Group, LLC; Trinity Tank Car, Inc.; and Trinity Meyer Utility Structures LLC (collectively, the "Combined Guarantor Subsidiaries”). 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. As part of the revolving credit facility renewal in May 2015, Trinity Construction Materials, Inc.; Trinity Highway Products, LLC; Trinity Parts & Components, LLC; and Trinity Structural Towers, Inc. were released from their respective guarantees under the revolving credit facility and, accordingly, were released from their respective guarantees under the Senior Notes indenture agreement. Amounts previously reported have been adjusted to include the Combined Guarantor Subsidiaries as of September 30, 2015 . See Note 11 Debt. 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 September 30, 2015 , assets held by the Combined Non-Guarantor Subsidiaries included $ 176.1 million of restricted cash that was not available for distribution to Trinity Industries, Inc. (“Parent”), $ 3,484.7 million of equipment securing certain non-recourse debt, $ 70.3 million of equipment securing certain lease obligations held by the Combined Non-Guarantor Subsidiaries, and $ 370.9 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 September 30, 2015 Parent Combined Combined Eliminations Consolidated (in millions) Revenues $ — $ 1,084.3 $ 678.3 $ (220.4 ) $ 1,542.2 Cost of revenues 0.1 818.6 513.2 (222.5 ) 1,109.4 Selling, engineering, and administrative expenses 38.5 41.2 46.9 — 126.6 Gains on dispositions of property 0.2 31.0 27.5 — 58.7 38.4 828.8 532.6 (222.5 ) 1,177.3 Operating profit (loss) (38.4 ) 255.5 145.7 2.1 364.9 Other (income) expense 4.8 7.8 32.5 — 45.1 Equity in earnings of subsidiaries, net of taxes 283.3 56.9 — (340.2 ) — Income before income taxes 240.1 304.6 113.2 (338.1 ) 319.8 Provision (benefit) for income taxes 35.8 96.5 21.1 (45.8 ) 107.6 Net income 204.3 208.1 92.1 (292.3 ) 212.2 Net income attributable to noncontrolling interest — — — 7.9 7.9 Net income attributable to controlling interest $ 204.3 $ 208.1 $ 92.1 $ (300.2 ) $ 204.3 Net income $ 204.3 $ 208.1 $ 92.1 $ (292.3 ) $ 212.2 Other comprehensive income (loss) (1.0 ) — (0.1 ) — (1.1 ) Comprehensive income 203.3 208.1 92.0 (292.3 ) 211.1 Comprehensive income attributable to noncontrolling interest — — — 8.4 8.4 Comprehensive income attributable to controlling interest $ 203.3 $ 208.1 $ 92.0 $ (300.7 ) $ 202.7 Statement of Operations and Comprehensive Income Nine Months Ended September 30, 2015 Parent Combined Combined Eliminations Consolidated (in millions) Revenues $ — $ 3,484.2 $ 2,049.6 $ (688.1 ) $ 4,845.7 Cost of revenues (1.8 ) 2,708.0 1,534.4 (700.5 ) 3,540.1 Selling, engineering, and administrative expenses 94.5 112.4 132.4 — 339.3 Gains on dispositions of property 1.7 38.9 74.0 — 114.6 91.0 2,781.5 1,592.8 (700.5 ) 3,764.8 Operating profit (loss) (91.0 ) 702.7 456.8 12.4 1,080.9 Other (income) expense 11.9 23.8 107.5 — 143.2 Equity in earnings of subsidiaries, net of taxes 726.4 181.5 — (907.9 ) — Income before income taxes 623.5 860.4 349.3 (895.5 ) 937.7 Provision (benefit) for income taxes 27.0 276.5 54.3 (42.1 ) 315.7 Net income 596.5 583.9 295.0 (853.4 ) 622.0 Net income attributable to noncontrolling interest — — — 25.5 25.5 Net income attributable to controlling interest $ 596.5 $ 583.9 $ 295.0 $ (878.9 ) $ 596.5 Net income $ 596.5 $ 583.9 $ 295.0 $ (853.4 ) $ 622.0 Other comprehensive income (loss) (0.1 ) (0.5 ) 4.6 — 4.0 Comprehensive income 596.4 583.4 299.6 (853.4 ) 626.0 Comprehensive income attributable to noncontrolling interest — — — 27.5 27.5 Comprehensive income attributable to controlling interest $ 596.4 $ 583.4 $ 299.6 $ (880.9 ) $ 598.5 Statement of Operations and Comprehensive Income Three Months Ended September 30, 2014 Parent Combined Combined Eliminations Consolidated (in millions) Revenues $ — $ 1,048.2 $ 716.3 $ (201.7 ) $ 1,562.8 Cost of revenues 0.4 823.9 549.8 (201.9 ) 1,172.2 Selling, engineering, and administrative expenses 37.4 33.5 42.1 — 113.0 Gains/(losses) on dispositions of property 0.1 0.1 3.4 — 3.6 37.7 857.3 588.5 (201.9 ) 1,281.6 Operating profit (loss) (37.7 ) 190.9 127.8 0.2 281.2 Other (income) expense 5.5 2.7 38.0 — 46.2 Equity in earnings of subsidiaries, net of taxes 211.1 28.1 — (239.2 ) — Income before income taxes 167.9 216.3 89.8 (239.0 ) 235.0 Provision (benefit) for income taxes 18.5 43.0 21.3 (4.7 ) 78.1 Net income 149.4 173.3 68.5 (234.3 ) 156.9 Net income attributable to noncontrolling interest — — — 7.5 7.5 Net income attributable to controlling interest $ 149.4 $ 173.3 $ 68.5 $ (241.8 ) $ 149.4 Net income $ 149.4 $ 173.3 $ 68.5 $ (234.3 ) $ 156.9 Other comprehensive income (loss) 0.8 — 3.6 — 4.4 Comprehensive income 150.2 173.3 72.1 (234.3 ) 161.3 Comprehensive income attributable to noncontrolling interest — — — 8.6 8.6 Comprehensive income attributable to controlling interest $ 150.2 $ 173.3 $ 72.1 $ (242.9 ) $ 152.7 Statement of Operations and Comprehensive Income Nine Months Ended September 30, 2014 Parent Combined Combined Eliminations Consolidated (in millions) Revenues $ — $ 3,055.9 $ 2,019.5 $ (566.8 ) $ 4,508.6 Cost of revenues 0.4 2,346.1 1,565.3 (567.3 ) 3,344.5 Selling, engineering, and administrative expenses 87.5 84.2 121.3 — 293.0 Gains/(losses) on dispositions of property (0.1 ) 41.3 62.2 — 103.4 88.0 2,389.0 1,624.4 (567.3 ) 3,534.1 Operating profit (loss) (88.0 ) 666.9 395.1 0.5 974.5 Other (income) expense 13.7 10.3 113.0 — 137.0 Equity in earnings of subsidiaries, net of taxes 616.5 104.5 — (721.0 ) — Income before income taxes 514.8 761.1 282.1 (720.5 ) 837.5 Provision (benefit) for income taxes (25.2 ) 255.3 57.4 (13.0 ) 274.5 Net income 540.0 505.8 224.7 (707.5 ) 563.0 Net income attributable to noncontrolling interest — — — 23.0 23.0 Net income attributable to controlling interest $ 540.0 $ 505.8 $ 224.7 $ (730.5 ) $ 540.0 Net income $ 540.0 $ 505.8 $ 224.7 $ (707.5 ) $ 563.0 Other comprehensive income (loss) 2.1 — 9.4 — 11.5 Comprehensive income 542.1 505.8 234.1 (707.5 ) 574.5 Comprehensive income attributable to noncontrolling interest — — — 25.4 25.4 Comprehensive income attributable to controlling interest $ 542.1 $ 505.8 $ 234.1 $ (732.9 ) $ 549.1 Balance Sheet September 30, 2015 Parent Combined Combined Eliminations Consolidated (in millions) Assets: Cash and cash equivalents $ 650.5 $ 0.5 $ 62.5 $ (35.7 ) $ 677.8 Short-term marketable securities — — — — — Receivables, net of allowance — 274.6 207.4 (0.3 ) 481.7 Income tax receivable 26.2 — — — 26.2 Inventory — 742.1 300.8 (22.0 ) 1,020.9 Property, plant, and equipment, net 33.0 1,540.9 4,225.3 (490.8 ) 5,308.4 Investments in and advances to subsidiaries 5,785.4 3,319.6 689.6 (9,794.6 ) — Restricted cash — — 176.1 35.7 211.8 Goodwill and other assets 160.4 581.5 341.0 (4.4 ) 1,078.5 $ 6,655.5 $ 6,459.2 $ 6,002.7 $ (10,312.1 ) $ 8,805.3 Liabilities: Accounts payable $ 10.7 $ 135.2 $ 149.1 $ (0.4 ) $ 294.6 Accrued liabilities 147.7 250.7 159.1 — 557.5 Debt 801.2 36.6 2,446.7 — 3,284.5 Deferred income — 25.6 1.8 — 27.4 Deferred income taxes — 640.1 13.5 12.2 665.8 Advances from subsidiaries 1,737.3 — — (1,737.3 ) — Other liabilities 98.3 13.9 3.0 — 115.2 Total stockholders' equity 3,860.3 5,357.1 3,229.5 (8,586.6 ) 3,860.3 $ 6,655.5 $ 6,459.2 $ 6,002.7 $ (10,312.1 ) $ 8,805.3 Balance Sheet December 31, 2014 Parent Combined Combined Eliminations Consolidated (in millions) Assets: Cash and cash equivalents $ 827.7 $ 11.1 $ 89.4 $ (40.3 ) $ 887.9 Short-term marketable securities 75.0 — — — 75.0 Receivables, net of allowance — 187.5 218.2 (0.4 ) 405.3 Income tax receivable 58.6 — — — 58.6 Inventory — 801.9 284.6 (18.1 ) 1,068.4 Property, plant, and equipment, net 29.3 813.6 4,624.3 (564.3 ) 4,902.9 Investments in and advances to subsidiaries 4,431.1 2,610.6 526.4 (7,568.1 ) — Restricted cash — — 194.4 40.3 234.7 Goodwill and other assets 180.6 575.5 375.1 (30.2 ) 1,101.0 $ 5,602.3 $ 5,000.2 $ 6,312.4 $ (8,181.1 ) $ 8,733.8 Liabilities: Accounts payable $ 15.0 $ 155.5 $ 125.5 $ (0.6 ) $ 295.4 Accrued liabilities 235.8 280.3 193.5 — 709.6 Debt 789.5 39.1 2,724.4 — 3,553.0 Deferred income — 34.5 1.9 — 36.4 Deferred income taxes — 634.1 12.1 (13.6 ) 632.6 Advances from subsidiaries 1,072.0 — — (1,072.0 ) — Other liabilities 92.6 13.0 3.8 — 109.4 Total stockholders' equity 3,397.4 3,843.7 3,251.2 (7,094.9 ) 3,397.4 $ 5,602.3 $ 5,000.2 $ 6,312.4 $ (8,181.1 ) $ 8,733.8 Statement of Cash Flows Nine Months Ended September 30, 2015 Parent Combined Combined Eliminations Consolidated (in millions) Operating activities: Net income $ 596.5 $ 583.9 $ 295.0 $ (853.4 ) $ 622.0 Equity in earnings of subsidiaries, net of taxes (726.4 ) (181.5 ) — 907.9 — Other 20.5 (81.2 ) 93.8 (24.8 ) 8.3 Net cash provided (required) by operating activities (109.4 ) 321.2 388.8 29.7 630.3 Investing activities: (Increase) decrease in short-term marketable securities 75.0 — — — 75.0 Proceeds from dispositions of property — 1.9 4.2 — 6.1 Proceeds from railcar lease fleet sales — 142.1 214.5 (43.2 ) 313.4 Capital expenditures – leasing — (638.1 ) (47.3 ) 43.2 (642.2 ) Capital expenditures – manufacturing and other (8.4 ) (30.9 ) (105.8 ) — (145.1 ) Acquisitions, net of cash acquired — — (46.2 ) — (46.2 ) (Increase) decrease in investment in partially-owned subsidiaries — 19.3 — (19.3 ) — Divestitures — — 51.3 — 51.3 Other — 0.9 3.9 — 4.8 Net cash provided (required) by investing activities 66.6 (504.8 ) 74.6 (19.3 ) (382.9 ) Financing activities: Proceeds from issuance of common stock, net 0.2 — — — 0.2 Excess tax benefits from stock-based compensation 13.1 — — — 13.1 Payments to retire debt — (2.5 ) (528.3 ) — (530.8 ) Proceeds from issuance of debt (1.5 ) — 243.9 — 242.4 (Increase) decrease in restricted cash — — 27.7 4.6 32.3 Shares repurchased (107.5 ) — — — (107.5 ) Dividends paid to common shareholders (48.0 ) — — — (48.0 ) Purchase of shares to satisfy employee tax on vested stock (27.3 ) — — — (27.4 ) Contributions from noncontrolling interest — — — — — Contributions from controlling interest in partially-owned subsidiaries — — — — — Distributions to noncontrolling interest — — (30.4 ) — (30.4 ) Distributions to controlling interest in partially-owned subsidiaries — — (19.3 ) 19.3 — Change in intercompany financing between entities 36.6 175.5 (182.4 ) (29.7 ) — Other — — (1.5 ) — (1.4 ) Net cash provided (required) by financing activities (134.4 ) 173.0 (490.3 ) (5.8 ) (457.5 ) Net increase (decrease) in cash and cash equivalents (177.2 ) (10.6 ) (26.9 ) 4.6 (210.1 ) 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 $ 650.5 $ 0.5 $ 62.5 $ (35.7 ) $ 677.8 Statement of Cash Flows Nine Months Ended September 30, 2014 Parent Combined Combined Eliminations Consolidated (in millions) Operating activities: Net income $ 540.0 $ 505.8 $ 224.7 $ (707.5 ) $ 563.0 Equity in earnings of subsidiaries, net of taxes (616.5 ) (104.5 ) — 721.0 — Other 71.9 (398.3 ) 106.5 (10.5 ) (230.4 ) Net cash provided (required) by operating activities (4.6 ) 3.0 331.2 3.0 332.6 Investing activities: (Increase) decrease in short-term marketable securities 149.7 — — — 149.7 Proceeds from dispositions of property 0.4 — 21.5 — 21.9 Proceeds from railcar lease fleet sales — 549.0 132.2 (423.8 ) 257.4 Capital expenditures – leasing — (164.3 ) (429.9 ) 423.8 (170.4 ) Capital expenditures – manufacturing and other (7.8 ) (100.5 ) (61.7 ) — (170.0 ) Acquisitions, net of cash acquired — (593.0 ) (118.8 ) — (711.8 ) (Increase) decrease in investment in partially-owned subsidiaries — (10.2 ) — 10.2 — Divestitures — — — — — Other — 1.5 0.5 — 2.0 Net cash provided (required) by investing activities 142.3 (317.5 ) (456.2 ) 10.2 (621.2 ) Financing activities: Proceeds from issuance of common stock, net 0.6 — — — 0.6 Excess tax benefits from stock-based compensation 24.2 — — — 24.2 Payments to retire debt (0.4 ) (2.4 ) (137.4 ) — (140.2 ) Proceeds from issuance of debt 395.4 (0.1 ) 332.1 — 727.4 (Increase) decrease in restricted cash — — 6.7 (8.9 ) (2.2 ) Shares repurchased (36.5 ) — — — (36.5 ) Dividends paid to common shareholders (38.7 ) — — — (38.7 ) Purchase of shares to satisfy employee tax on vested stock (38.5 ) — — — (38.5 ) Contributions from noncontrolling interest — — 49.6 — 49.6 Contributions from controlling interest in partially-owned subsidiaries — — 22.2 (22.2 ) — Distributions to noncontrolling interest — — (19.3 ) — (19.3 ) Distributions to controlling interest in partially-owned subsidiaries — — (12.0 ) 12.0 — Change in intercompany financing between entities (214.2 ) 317.2 (99.9 ) (3.1 ) — Other — (0.5 ) (2.1 ) — (2.6 ) Net cash provided (required) by financing activities 91.9 314.2 139.9 (22.2 ) 523.8 Net increase (decrease) in cash and cash equivalents 229.6 (0.3 ) 14.9 (9.0 ) 235.2 Cash and cash equivalents at beginning of period 409.8 2.1 44.0 (27.4 ) 428.5 Cash and cash equivalents at end of period $ 639.4 $ 1.8 $ 58.9 $ (36.4 ) $ 663.7 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 , and the results of operations for the three and nine months ended September 30, 2015 and 2014 , and cash flows for the nine months ended September 30, 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 nine months ended September 30, 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 . |
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. |
Cash and Cash Equivalents | 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. |
Concentration of Credit Risk | 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 May 2014, the Financial Accounting Standards Board ("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, 2017. We are currently evaluating the impact this standard will have 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 April 2015, the 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 September 2015, the FASB issued Accounting Standards Update No. 2015-16, “Simplifying the Accounting for Measurement Period Adjustments” (“ASU 2015-16”) which requires that adjustments to provisional amounts identified during the measurement period of a business combination be recognized in the reporting period in which those adjustments are determined, including the effect on earnings, if any, calculated as if the accounting had been completed at the acquisition date. This eliminates the previous requirement to retrospectively account for such adjustments. ASU 2015-16 also requires additional disclosures related to the income statement effects of adjustments to provisional amounts identified during the measurement period. ASU 2015-16 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 2015-16 will have a material impact 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) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisition and divestiture activity | The Company's acquisition and divestiture activities are summarized below: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Acquisitions: Purchase price $ — $ 593.0 $ 46.2 $ 718.3 Net cash paid $ — $ 593.0 $ 46.2 $ 711.8 Goodwill recorded $ — $ 410.2 $ — $ 496.3 Divestitures: Proceeds $ — $ — $ 51.3 $ — Gain recognized $ — $ — $ 8.2 $ — Goodwill charged off $ — $ — $ 17.3 $ — |
Finalized purchase price allocation | With regard to the acquisition of the assets of Meyer Steel Structures (“Meyer”) in August 2014, the purchase price allocation was finalized during the three-months ended September 30, 2015 as shown in the following table: September 30, (in millions) Accounts receivable $ 29.4 Inventories 35.2 Property, plant, and equipment 70.5 Goodwill 410.2 Other assets 76.0 Accounts payable (15.4 ) Accrued liabilities (10.3 ) Total net assets acquired $ 595.6 |
Fair Value Accounting (Tables)
Fair Value Accounting (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 (in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 233.2 $ — $ — $ 233.2 Restricted cash 211.8 — — 211.8 Total assets $ 445.0 $ — $ — $ 445.0 Liabilities: Interest rate hedge: (1) Partially-owned subsidiaries $ — $ 2.2 $ — $ 2.2 Fuel derivative instruments (1) — 0.7 — 0.7 Total liabilities $ — $ 2.9 $ — $ 2.9 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 — 2.0 — 2.0 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: September 30, 2015 December 31, 2014 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (in millions) Recourse: Senior notes $ 399.6 $ 380.4 $ 399.6 $ 387.0 Convertible subordinated notes 449.5 529.6 449.5 593.9 Less: unamortized discount (47.9 ) (59.6 ) 401.6 389.9 Capital lease obligations 36.6 36.6 39.1 39.1 Other 0.5 0.5 0.7 0.7 838.3 947.1 829.3 1,020.7 Non-recourse: 2006 secured railcar equipment notes 209.0 225.6 223.0 245.6 Promissory notes — — 363.9 362.7 2009 secured railcar equipment notes 181.4 213.1 188.8 227.7 2010 secured railcar equipment notes 300.0 323.0 311.5 344.0 TILC warehouse facility 291.7 291.7 120.6 120.6 TRL 2012 secured railcar equipment notes (RIV 2013) 454.5 448.2 472.2 470.3 TRIP Master Funding secured railcar equipment notes 1,009.6 1,065.0 1,043.7 1,121.4 2,446.2 2,566.6 2,723.7 2,892.3 Total $ 3,284.5 $ 3,513.7 $ 3,553.0 $ 3,913.0 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 Revenues Operating Profit (Loss) External Intersegment Total (in millions) Rail Group $ 747.2 $ 326.2 $ 1,073.4 $ 223.3 Construction Products Group 151.1 3.7 154.8 19.9 Inland Barge Group 164.8 — 164.8 28.1 Energy Equipment Group 229.6 59.9 289.5 44.8 Railcar Leasing and Management Services Group 246.6 2.6 249.2 158.2 All Other 2.9 26.2 29.1 (3.0 ) Segment Totals before Eliminations and Corporate 1,542.2 418.6 1,960.8 471.3 Corporate — — — (39.7 ) Eliminations – Lease subsidiary — (308.4 ) (308.4 ) (65.6 ) Eliminations – Other — (110.2 ) (110.2 ) (1.1 ) Consolidated Total $ 1,542.2 $ — $ 1,542.2 $ 364.9 Three Months Ended September 30, 2014 Revenues Operating Profit (Loss) External Intersegment Total (in millions) Rail Group $ 802.3 $ 194.1 $ 996.4 $ 186.4 Construction Products Group 168.4 2.0 170.4 21.6 Inland Barge Group 168.4 — 168.4 31.0 Energy Equipment Group 219.0 50.7 269.7 30.0 Railcar Leasing and Management Services Group 203.0 2.7 205.7 87.0 All Other 1.7 27.2 28.9 (3.3 ) Segment Totals before Eliminations and Corporate 1,562.8 276.7 1,839.5 352.7 Corporate — — — (36.7 ) Eliminations – Lease subsidiary — (186.5 ) (186.5 ) (34.3 ) Eliminations – Other — (90.2 ) (90.2 ) (0.5 ) Consolidated Total $ 1,562.8 $ — $ 1,562.8 $ 281.2 Nine Months Ended September 30, 2015 Revenues Operating Profit (Loss) External Intersegment Total (in millions) Rail Group $ 2,506.8 $ 821.4 $ 3,328.2 $ 663.7 Construction Products Group 411.4 7.5 418.9 49.5 Inland Barge Group 505.7 — 505.7 96.3 Energy Equipment Group 694.4 177.1 871.5 118.3 Railcar Leasing and Management Services Group 722.2 9.9 732.1 418.7 All Other 5.2 78.8 84.0 (4.6 ) Segment Totals before Eliminations and Corporate 4,845.7 1,094.7 5,940.4 1,341.9 Corporate — — — (98.7 ) Eliminations – Lease subsidiary — (782.9 ) (782.9 ) (163.8 ) Eliminations – Other — (311.8 ) (311.8 ) 1.5 Consolidated Total $ 4,845.7 $ — $ 4,845.7 $ 1,080.9 Nine Months Ended September 30, 2014 Revenues Operating Profit (Loss) External Intersegment Total (in millions) Rail Group $ 2,164.1 $ 585.3 $ 2,749.4 $ 529.9 Construction Products Group 430.5 4.7 435.2 65.7 Inland Barge Group 470.7 — 470.7 88.6 Energy Equipment Group 569.2 138.7 707.9 81.2 Railcar Leasing and Management Services Group 870.6 9.7 880.3 419.7 All Other 3.5 76.7 80.2 (11.3 ) Segment Totals before Eliminations and Corporate 4,508.6 815.1 5,323.7 1,173.8 Corporate — — — (89.5 ) Eliminations – Lease subsidiary — (564.2 ) (564.2 ) (110.5 ) Eliminations – Other — (250.9 ) (250.9 ) 0.7 Consolidated Total $ 4,508.6 $ — $ 4,508.6 $ 974.5 |
Railcar Leasing and Managemen34
Railcar Leasing and Management Services Group (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Sale Leaseback Transaction [Line Items] | |
Selected consolidating financial information for the Leasing Group | Selected consolidating financial information for the Leasing Group is as follows: September 30, 2015 Leasing Group Wholly- Owned Subsidiaries Partially-Owned Subsidiaries Manufacturing/ Corporate Total (in millions) Cash, cash equivalents, and short-term marketable securities $ 2.5 $ — $ 675.3 $ 677.8 Property, plant, and equipment, net $ 3,064.3 $ 1,952.5 $ 933.7 $ 5,950.5 Net deferred profit on railcars sold to the Leasing Group (642.1 ) Consolidated property, plant and equipment, net $ 5,308.4 Restricted cash $ 121.3 $ 90.5 $ — $ 211.8 Debt: Recourse $ 36.6 $ — $ 850.0 $ 886.6 Less: unamortized discount — — (48.3 ) (48.3 ) 36.6 — 801.7 838.3 Non-recourse 982.1 1,464.1 — 2,446.2 Total debt $ 1,018.7 $ 1,464.1 $ 801.7 $ 3,284.5 Net deferred tax liabilities $ 656.7 $ 0.9 $ (8.0 ) $ 649.6 December 31, 2014 Leasing Group Wholly- Owned Subsidiaries Partially-Owned Subsidiaries Manufacturing/ Corporate Total (in millions) Cash, cash equivalents, and short-term marketable securities $ 11.9 $ — $ 951.0 $ 962.9 Property, plant, and equipment, net $ 2,599.2 $ 1,999.9 $ 861.0 $ 5,460.1 Net deferred profit on railcars sold to the Leasing Group (557.2 ) Consolidated property, plant and equipment, net $ 4,902.9 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 1,207.8 1,515.9 — 2,723.7 Total debt $ 1,246.9 $ 1,515.9 $ 790.2 $ 3,553.0 Net deferred tax liabilities $ 658.2 $ 0.9 $ (44.1 ) $ 615.0 |
Selected consolidating income statement information for the Leasing Group | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 Percent 2015 2014 Percent ($ in millions) Change ($ in millions) Change Revenues: Leasing and management $ 176.6 $ 158.3 11.6 % $ 520.9 $ 469.2 11.0 % Sales of railcars owned one year or less at the time of sale 72.6 47.4 * 211.2 411.1 * Total revenues $ 249.2 $ 205.7 21.1 $ 732.1 $ 880.3 (16.8 ) Operating profit: Leasing and management $ 81.8 $ 74.4 9.9 $ 254.7 $ 213.8 19.1 Railcar sales: Railcars owned one year or less at the time of sale 18.6 9.6 61.2 115.7 Railcars owned more than one year at the time of sale 57.8 3.0 102.8 90.2 Total operating profit $ 158.2 $ 87.0 81.8 $ 418.7 $ 419.7 (0.2 ) Operating profit margin: Leasing and management 46.3 % 47.0 % 48.9 % 45.6 % Railcar sales * * * * Total operating profit margin 63.5 % 42.3 % 57.2 % 47.7 % Selected expense information (1) : Depreciation $ 35.9 $ 32.4 10.8 $ 105.8 $ 97.1 9.0 Maintenance $ 24.6 $ 17.8 38.2 $ 65.9 $ 58.8 12.1 Rent $ 9.9 $ 13.1 (24.4 ) $ 31.3 $ 39.7 (21.2 ) Interest $ 32.5 $ 39.1 (16.9 ) $ 106.8 $ 114.5 (6.7 ) * 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 profit 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 nine months ended September 30, 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: Nine Months Ended September 30, 2015 2014 (in millions) Leasing Group: Railcars owned one year or less at the time of sale $ 182.7 $ 378.8 Railcars owned more than one year at the time of sale 258.0 235.7 Rail Group 175.8 153.4 $ 616.5 $ 767.9 |
Future contractual minimum rental revenues on leases | Future contractual minimum rental revenues on leases are as follows: Remaining three months of 2015 2016 2017 2018 2019 Thereafter Total (in millions) Future contractual minimum rental revenue $ 137.1 $ 486.2 $ 412.0 $ 327.9 $ 242.9 $ 410.1 $ 2,016.2 |
Railcars leased from independent owner trusts | |
Sale Leaseback Transaction [Line Items] | |
Future operating lease obligations and future contractual minimum rental revenues, Leasing group | 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 three months of 2015 2016 2017 2018 2019 Thereafter Total (in millions) Future operating lease obligations of Trusts’ railcars $ 7.4 $ 29.3 $ 29.2 $ 29.2 $ 28.8 $ 170.2 $ 294.1 Future contractual minimum rental revenues of Trusts’ railcars $ 13.2 $ 47.4 $ 38.9 $ 29.2 $ 20.1 $ 35.0 $ 183.8 |
Railcars leased from other third parties | |
Sale Leaseback Transaction [Line Items] | |
Future operating lease obligations and future contractual minimum rental revenues, Leasing group | Future amounts due as well as future contractual minimum rental revenues related to operating leases other than leases discussed above are as follows: Remaining three months of 2015 2016 2017 2018 2019 Thereafter Total (in millions) Future operating lease obligations $ 3.2 $ 12.8 $ 12.1 $ 12.0 $ 9.5 $ 28.7 $ 78.3 Future contractual minimum rental revenues $ 5.3 $ 19.3 $ 12.4 $ 7.2 $ 3.8 $ 5.9 $ 53.9 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest rate hedges | Interest rate hedges Included in accompanying balance sheet Notional Amount Interest Rate (1) Liability AOCL – loss/ (income) Noncontrolling Interest (in millions, except %) Expired hedges: 2006 secured railcar equipment notes $ 200.0 4.87 % $ — $ (1.1 ) $ — TRIP Holdings warehouse loan $ 788.5 3.60 % $ — $ 8.5 $ 11.4 Open hedge: TRIP Master Funding secured railcar equipment notes $ 48.8 2.62 % $ 2.2 $ 0.9 $ 1.2 (1) Weighted average fixed interest rate |
Effect on statements of operations | Effect on interest expense - increase/(decrease) Three Months Ended Nine Months Ended Expected effect during next twelve months (1) 2015 2014 2015 2014 (in millions) Expired hedges: 2006 secured railcar equipment notes $ — $ (0.1 ) $ (0.2 ) $ (0.3 ) $ (0.3 ) Promissory notes $ — $ 0.7 $ 1.2 $ 2.2 $ — TRIP Holdings warehouse loan $ 1.2 $ 1.3 $ 3.7 $ 3.9 $ 4.8 Open hedges: TRIP Master Funding secured railcar equipment notes $ 0.2 $ 0.4 $ 0.9 $ 1.2 $ 1.0 Promissory notes $ — $ 3.8 $ 5.3 $ 11.5 $ — (1) Based on the fair value of open hedges as of September 30, 2015 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 and December 31, 2014 . September 30, December 31, (in millions) Manufacturing/Corporate: Land $ 85.1 $ 81.4 Buildings and improvements 572.9 548.2 Machinery and other 1,066.0 975.7 Construction in progress 95.4 76.4 1,819.4 1,681.7 Less accumulated depreciation (885.7 ) (820.7 ) 933.7 861.0 Leasing: Wholly-owned subsidiaries: Machinery and other 10.7 10.7 Equipment on lease 3,661.7 3,189.6 3,672.4 3,200.3 Less accumulated depreciation (608.1 ) (601.1 ) 3,064.3 2,599.2 Partially-owned subsidiaries: Equipment on lease 2,261.3 2,261.2 Less accumulated depreciation (308.8 ) (261.3 ) 1,952.5 1,999.9 Net deferred profit on railcars sold to the Leasing Group (642.1 ) (557.2 ) $ 5,308.4 $ 4,902.9 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by segment | Goodwill by segment is as follows: September 30, December 31, (as reported) (in millions) Rail Group $ 134.6 $ 134.6 Construction Products Group 111.0 128.3 Energy Equipment Group 506.9 508.5 Railcar Leasing and Management Services Group 1.8 1.8 $ 754.3 $ 773.2 |
Warranties (Tables)
Warranties (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Product Warranties Disclosures [Abstract] | |
Changes in the accruals for warranties | The changes in the accruals for warranties for the three and nine months ended September 30, 2015 and 2014 are as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Beginning balance $ 20.5 $ 17.1 $ 17.8 $ 14.7 Warranty costs incurred (2.0 ) (1.7 ) (5.4 ) (3.8 ) Warranty originations and revisions 5.8 4.3 14.8 10.9 Warranty expirations (1.7 ) (0.7 ) (4.6 ) (2.8 ) Ending balance $ 22.6 $ 19.0 $ 22.6 $ 19.0 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Components of debt | The following table summarizes the components of debt as of September 30, 2015 and December 31, 2014 : September 30, December 31, (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 $47.9 and $59.6 401.6 389.9 Other 0.5 0.7 801.7 790.2 Leasing – Recourse: Capital lease obligations 36.6 39.1 Total recourse debt 838.3 829.3 Leasing – Non-recourse: Wholly-owned subsidiaries: 2006 secured railcar equipment notes 209.0 223.0 Promissory notes — 363.9 2009 secured railcar equipment notes 181.4 188.8 2010 secured railcar equipment notes 300.0 311.5 TILC warehouse facility 291.7 120.6 982.1 1,207.8 Partially-owned subsidiaries: TRL 2012 secured railcar equipment notes (RIV 2013) 454.5 472.2 TRIP Master Funding secured railcar equipment notes 1,009.6 1,043.7 1,464.1 1,515.9 Total non–recourse debt 2,446.2 2,723.7 Total debt $ 3,284.5 $ 3,553.0 |
Total interest expense recognized on the Convertible Subordinated Notes | Total interest expense recognized on the Convertible Subordinated Notes for the three and nine months ended September 30, 2015 and 2014 is as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Coupon rate interest $ 4.4 $ 4.4 $ 13.1 $ 13.1 Amortized debt discount 4.0 3.7 11.7 10.8 $ 8.4 $ 8.1 $ 24.8 $ 23.9 |
Remaining principal payments under existing debt agreements | The remaining principal payments under existing debt agreements as of September 30, 2015 , after considering the extension of the TILC Warehouse facility in April 2015, are as follows: Remaining three months of 2015 2016 2017 2018 2019 Thereafter (in millions) Recourse: Corporate $ — $ 0.2 $ 0.3 $ — $ — $ 849.5 Leasing – capital lease obligations (Note 6) 0.8 3.5 3.7 28.6 — — Non-recourse – leasing (Note 6): 2006 secured railcar equipment notes 4.9 21.8 23.9 25.3 28.0 105.1 2009 secured railcar equipment notes 2.2 6.5 6.3 6.4 11.2 148.8 2010 secured railcar equipment notes 3.8 14.9 13.7 10.0 7.6 250.0 TILC warehouse facility 2.4 9.8 9.8 9.8 2.4 — TRL 2012 secured railcar equipment notes (RIV 2013) 5.4 22.3 22.9 23.1 22.2 358.6 TRIP Master Funding secured railcar equipment notes 11.8 39.8 29.2 41.8 50.1 836.9 Facility termination payments - TILC warehouse facility — — — — 257.5 — Total principal payments $ 31.3 $ 118.8 $ 109.8 $ 145.0 $ 379.0 $ 2,548.9 |
Other, Net (Tables)
Other, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Other, net (income) expense | Other, net (income) expense consists of the following items: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Foreign currency exchange transactions $ (0.5 ) $ (0.2 ) $ (2.3 ) $ (0.1 ) Gain (loss) on equity investments — (0.1 ) 0.1 (0.7 ) Other (0.5 ) (1.3 ) (1.8 ) (2.1 ) Other, net $ (1.0 ) $ (1.6 ) $ (4.0 ) $ (2.9 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Reconciliation between the statutory U.S. Federal income tax rate and the Company's effective income tax rate on income before income taxes | The following is a reconciliation between the statutory U.S. Federal income tax rate and the Company’s effective income tax rate on income before income taxes: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Statutory rate 35.0 % 35.0 % 35.0 % 35.0 % State taxes 1.2 0.9 1.2 0.9 Domestic production activities deduction (1.7 ) (1.4 ) (1.8 ) (1.9 ) Noncontrolling interest in partially-owned subsidiaries (0.9 ) (1.0 ) (0.9 ) (1.1 ) State adjustments — 1.1 0.1 0.3 Other, net — (1.4 ) 0.1 (0.4 ) Effective rate 33.6 % 33.2 % 33.7 % 32.8 % |
Change in unrecognized tax benefits | The change in unrecognized tax benefits for the nine months ended September 30, 2015 and 2014 was as follows: Nine Months Ended 2015 2014 (in millions) Beginning balance $ 62.3 $ 55.0 Additions for tax positions related to the current year 4.1 3.7 Additions for tax positions of prior years — 0.3 Reductions for tax positions of prior years (0.1 ) (0.1 ) Settlements (0.7 ) — Ending balance $ 65.6 $ 58.9 |
Employee Retirement Plans (Tabl
Employee Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended 2015 2014 2015 2014 (in millions) Expense Components Defined benefit: Service cost $ 0.1 $ 0.2 $ 0.3 $ 0.4 Interest 5.0 5.1 15.0 15.1 Expected return on plan assets (7.6 ) (7.8 ) (22.8 ) (23.2 ) Amortization of actuarial loss 1.3 1.0 3.9 1.6 (1.2 ) (1.5 ) (3.6 ) (6.1 ) Profit sharing 4.5 3.9 14.9 12.8 Multiemployer plan 0.6 0.3 1.7 0.3 Net retirement cost $ 3.9 $ 2.7 $ 13.0 $ 7.0 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive loss | Changes in accumulated other comprehensive loss for the nine months ended September 30, 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 (5.2 ) (0.8 ) — (6.0 ) Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $3.3, $1.5, and $4.8 — 7.6 2.4 10.0 Less: noncontrolling interest — (2.0 ) — (2.0 ) Other comprehensive income (loss) (5.2 ) 4.8 2.4 2.0 Balances at September 30, 2015 $ (23.7 ) $ (1.8 ) $ (84.4 ) $ (109.9 ) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 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 Income (Loss) Average Shares EPS Income (Loss) Average Shares EPS (in millions, except per share amounts) Net income attributable to Trinity Industries, Inc. $ 204.3 $ 149.4 Unvested restricted share participation (6.0 ) (4.7 ) Net income attributable to Trinity Industries, Inc. – basic 198.3 150.0 $ 1.32 144.7 151.5 $ 0.96 Effect of dilutive securities: Stock options — — — 0.1 Convertible subordinated notes — 0.9 0.2 8.0 Net income attributable to Trinity Industries, Inc. – diluted $ 198.3 150.9 $ 1.31 $ 144.9 159.6 $ 0.91 Nine Months Ended Nine Months Ended Income (Loss) Average Shares EPS Income (Loss) Average Shares EPS (in millions, except per share amounts) Net income attributable to Trinity Industries, Inc. $ 596.5 $ 540.0 Unvested restricted share participation (18.2 ) (17.8 ) Net income attributable to Trinity Industries, Inc. – basic 578.3 150.6 $ 3.84 522.2 150.9 $ 3.46 Effect of dilutive securities: Stock options — — — 0.1 Convertible subordinated notes 0.3 2.5 0.6 6.0 Net income attributable to Trinity Industries, Inc. – diluted $ 578.6 153.1 $ 3.78 $ 522.8 157.0 $ 3.33 |
Financial Statements for Guar45
Financial Statements for Guarantors of the Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Financial Statements for Guarantors of the Senior Notes [Abstract] | |
Statement of Operations and Comprehensive Income | Statement of Operations and Comprehensive Income Three Months Ended September 30, 2015 Parent Combined Combined Eliminations Consolidated (in millions) Revenues $ — $ 1,084.3 $ 678.3 $ (220.4 ) $ 1,542.2 Cost of revenues 0.1 818.6 513.2 (222.5 ) 1,109.4 Selling, engineering, and administrative expenses 38.5 41.2 46.9 — 126.6 Gains on dispositions of property 0.2 31.0 27.5 — 58.7 38.4 828.8 532.6 (222.5 ) 1,177.3 Operating profit (loss) (38.4 ) 255.5 145.7 2.1 364.9 Other (income) expense 4.8 7.8 32.5 — 45.1 Equity in earnings of subsidiaries, net of taxes 283.3 56.9 — (340.2 ) — Income before income taxes 240.1 304.6 113.2 (338.1 ) 319.8 Provision (benefit) for income taxes 35.8 96.5 21.1 (45.8 ) 107.6 Net income 204.3 208.1 92.1 (292.3 ) 212.2 Net income attributable to noncontrolling interest — — — 7.9 7.9 Net income attributable to controlling interest $ 204.3 $ 208.1 $ 92.1 $ (300.2 ) $ 204.3 Net income $ 204.3 $ 208.1 $ 92.1 $ (292.3 ) $ 212.2 Other comprehensive income (loss) (1.0 ) — (0.1 ) — (1.1 ) Comprehensive income 203.3 208.1 92.0 (292.3 ) 211.1 Comprehensive income attributable to noncontrolling interest — — — 8.4 8.4 Comprehensive income attributable to controlling interest $ 203.3 $ 208.1 $ 92.0 $ (300.7 ) $ 202.7 Statement of Operations and Comprehensive Income Nine Months Ended September 30, 2015 Parent Combined Combined Eliminations Consolidated (in millions) Revenues $ — $ 3,484.2 $ 2,049.6 $ (688.1 ) $ 4,845.7 Cost of revenues (1.8 ) 2,708.0 1,534.4 (700.5 ) 3,540.1 Selling, engineering, and administrative expenses 94.5 112.4 132.4 — 339.3 Gains on dispositions of property 1.7 38.9 74.0 — 114.6 91.0 2,781.5 1,592.8 (700.5 ) 3,764.8 Operating profit (loss) (91.0 ) 702.7 456.8 12.4 1,080.9 Other (income) expense 11.9 23.8 107.5 — 143.2 Equity in earnings of subsidiaries, net of taxes 726.4 181.5 — (907.9 ) — Income before income taxes 623.5 860.4 349.3 (895.5 ) 937.7 Provision (benefit) for income taxes 27.0 276.5 54.3 (42.1 ) 315.7 Net income 596.5 583.9 295.0 (853.4 ) 622.0 Net income attributable to noncontrolling interest — — — 25.5 25.5 Net income attributable to controlling interest $ 596.5 $ 583.9 $ 295.0 $ (878.9 ) $ 596.5 Net income $ 596.5 $ 583.9 $ 295.0 $ (853.4 ) $ 622.0 Other comprehensive income (loss) (0.1 ) (0.5 ) 4.6 — 4.0 Comprehensive income 596.4 583.4 299.6 (853.4 ) 626.0 Comprehensive income attributable to noncontrolling interest — — — 27.5 27.5 Comprehensive income attributable to controlling interest $ 596.4 $ 583.4 $ 299.6 $ (880.9 ) $ 598.5 Statement of Operations and Comprehensive Income Three Months Ended September 30, 2014 Parent Combined Combined Eliminations Consolidated (in millions) Revenues $ — $ 1,048.2 $ 716.3 $ (201.7 ) $ 1,562.8 Cost of revenues 0.4 823.9 549.8 (201.9 ) 1,172.2 Selling, engineering, and administrative expenses 37.4 33.5 42.1 — 113.0 Gains/(losses) on dispositions of property 0.1 0.1 3.4 — 3.6 37.7 857.3 588.5 (201.9 ) 1,281.6 Operating profit (loss) (37.7 ) 190.9 127.8 0.2 281.2 Other (income) expense 5.5 2.7 38.0 — 46.2 Equity in earnings of subsidiaries, net of taxes 211.1 28.1 — (239.2 ) — Income before income taxes 167.9 216.3 89.8 (239.0 ) 235.0 Provision (benefit) for income taxes 18.5 43.0 21.3 (4.7 ) 78.1 Net income 149.4 173.3 68.5 (234.3 ) 156.9 Net income attributable to noncontrolling interest — — — 7.5 7.5 Net income attributable to controlling interest $ 149.4 $ 173.3 $ 68.5 $ (241.8 ) $ 149.4 Net income $ 149.4 $ 173.3 $ 68.5 $ (234.3 ) $ 156.9 Other comprehensive income (loss) 0.8 — 3.6 — 4.4 Comprehensive income 150.2 173.3 72.1 (234.3 ) 161.3 Comprehensive income attributable to noncontrolling interest — — — 8.6 8.6 Comprehensive income attributable to controlling interest $ 150.2 $ 173.3 $ 72.1 $ (242.9 ) $ 152.7 Statement of Operations and Comprehensive Income Nine Months Ended September 30, 2014 Parent Combined Combined Eliminations Consolidated (in millions) Revenues $ — $ 3,055.9 $ 2,019.5 $ (566.8 ) $ 4,508.6 Cost of revenues 0.4 2,346.1 1,565.3 (567.3 ) 3,344.5 Selling, engineering, and administrative expenses 87.5 84.2 121.3 — 293.0 Gains/(losses) on dispositions of property (0.1 ) 41.3 62.2 — 103.4 88.0 2,389.0 1,624.4 (567.3 ) 3,534.1 Operating profit (loss) (88.0 ) 666.9 395.1 0.5 974.5 Other (income) expense 13.7 10.3 113.0 — 137.0 Equity in earnings of subsidiaries, net of taxes 616.5 104.5 — (721.0 ) — Income before income taxes 514.8 761.1 282.1 (720.5 ) 837.5 Provision (benefit) for income taxes (25.2 ) 255.3 57.4 (13.0 ) 274.5 Net income 540.0 505.8 224.7 (707.5 ) 563.0 Net income attributable to noncontrolling interest — — — 23.0 23.0 Net income attributable to controlling interest $ 540.0 $ 505.8 $ 224.7 $ (730.5 ) $ 540.0 Net income $ 540.0 $ 505.8 $ 224.7 $ (707.5 ) $ 563.0 Other comprehensive income (loss) 2.1 — 9.4 — 11.5 Comprehensive income 542.1 505.8 234.1 (707.5 ) 574.5 Comprehensive income attributable to noncontrolling interest — — — 25.4 25.4 Comprehensive income attributable to controlling interest $ 542.1 $ 505.8 $ 234.1 $ (732.9 ) $ 549.1 |
Balance Sheet | Balance Sheet September 30, 2015 Parent Combined Combined Eliminations Consolidated (in millions) Assets: Cash and cash equivalents $ 650.5 $ 0.5 $ 62.5 $ (35.7 ) $ 677.8 Short-term marketable securities — — — — — Receivables, net of allowance — 274.6 207.4 (0.3 ) 481.7 Income tax receivable 26.2 — — — 26.2 Inventory — 742.1 300.8 (22.0 ) 1,020.9 Property, plant, and equipment, net 33.0 1,540.9 4,225.3 (490.8 ) 5,308.4 Investments in and advances to subsidiaries 5,785.4 3,319.6 689.6 (9,794.6 ) — Restricted cash — — 176.1 35.7 211.8 Goodwill and other assets 160.4 581.5 341.0 (4.4 ) 1,078.5 $ 6,655.5 $ 6,459.2 $ 6,002.7 $ (10,312.1 ) $ 8,805.3 Liabilities: Accounts payable $ 10.7 $ 135.2 $ 149.1 $ (0.4 ) $ 294.6 Accrued liabilities 147.7 250.7 159.1 — 557.5 Debt 801.2 36.6 2,446.7 — 3,284.5 Deferred income — 25.6 1.8 — 27.4 Deferred income taxes — 640.1 13.5 12.2 665.8 Advances from subsidiaries 1,737.3 — — (1,737.3 ) — Other liabilities 98.3 13.9 3.0 — 115.2 Total stockholders' equity 3,860.3 5,357.1 3,229.5 (8,586.6 ) 3,860.3 $ 6,655.5 $ 6,459.2 $ 6,002.7 $ (10,312.1 ) $ 8,805.3 Balance Sheet December 31, 2014 Parent Combined Combined Eliminations Consolidated (in millions) Assets: Cash and cash equivalents $ 827.7 $ 11.1 $ 89.4 $ (40.3 ) $ 887.9 Short-term marketable securities 75.0 — — — 75.0 Receivables, net of allowance — 187.5 218.2 (0.4 ) 405.3 Income tax receivable 58.6 — — — 58.6 Inventory — 801.9 284.6 (18.1 ) 1,068.4 Property, plant, and equipment, net 29.3 813.6 4,624.3 (564.3 ) 4,902.9 Investments in and advances to subsidiaries 4,431.1 2,610.6 526.4 (7,568.1 ) — Restricted cash — — 194.4 40.3 234.7 Goodwill and other assets 180.6 575.5 375.1 (30.2 ) 1,101.0 $ 5,602.3 $ 5,000.2 $ 6,312.4 $ (8,181.1 ) $ 8,733.8 Liabilities: Accounts payable $ 15.0 $ 155.5 $ 125.5 $ (0.6 ) $ 295.4 Accrued liabilities 235.8 280.3 193.5 — 709.6 Debt 789.5 39.1 2,724.4 — 3,553.0 Deferred income — 34.5 1.9 — 36.4 Deferred income taxes — 634.1 12.1 (13.6 ) 632.6 Advances from subsidiaries 1,072.0 — — (1,072.0 ) — Other liabilities 92.6 13.0 3.8 — 109.4 Total stockholders' equity 3,397.4 3,843.7 3,251.2 (7,094.9 ) 3,397.4 $ 5,602.3 $ 5,000.2 $ 6,312.4 $ (8,181.1 ) $ 8,733.8 |
Statement of Cash Flows | Statement of Cash Flows Nine Months Ended September 30, 2015 Parent Combined Combined Eliminations Consolidated (in millions) Operating activities: Net income $ 596.5 $ 583.9 $ 295.0 $ (853.4 ) $ 622.0 Equity in earnings of subsidiaries, net of taxes (726.4 ) (181.5 ) — 907.9 — Other 20.5 (81.2 ) 93.8 (24.8 ) 8.3 Net cash provided (required) by operating activities (109.4 ) 321.2 388.8 29.7 630.3 Investing activities: (Increase) decrease in short-term marketable securities 75.0 — — — 75.0 Proceeds from dispositions of property — 1.9 4.2 — 6.1 Proceeds from railcar lease fleet sales — 142.1 214.5 (43.2 ) 313.4 Capital expenditures – leasing — (638.1 ) (47.3 ) 43.2 (642.2 ) Capital expenditures – manufacturing and other (8.4 ) (30.9 ) (105.8 ) — (145.1 ) Acquisitions, net of cash acquired — — (46.2 ) — (46.2 ) (Increase) decrease in investment in partially-owned subsidiaries — 19.3 — (19.3 ) — Divestitures — — 51.3 — 51.3 Other — 0.9 3.9 — 4.8 Net cash provided (required) by investing activities 66.6 (504.8 ) 74.6 (19.3 ) (382.9 ) Financing activities: Proceeds from issuance of common stock, net 0.2 — — — 0.2 Excess tax benefits from stock-based compensation 13.1 — — — 13.1 Payments to retire debt — (2.5 ) (528.3 ) — (530.8 ) Proceeds from issuance of debt (1.5 ) — 243.9 — 242.4 (Increase) decrease in restricted cash — — 27.7 4.6 32.3 Shares repurchased (107.5 ) — — — (107.5 ) Dividends paid to common shareholders (48.0 ) — — — (48.0 ) Purchase of shares to satisfy employee tax on vested stock (27.3 ) — — — (27.4 ) Contributions from noncontrolling interest — — — — — Contributions from controlling interest in partially-owned subsidiaries — — — — — Distributions to noncontrolling interest — — (30.4 ) — (30.4 ) Distributions to controlling interest in partially-owned subsidiaries — — (19.3 ) 19.3 — Change in intercompany financing between entities 36.6 175.5 (182.4 ) (29.7 ) — Other — — (1.5 ) — (1.4 ) Net cash provided (required) by financing activities (134.4 ) 173.0 (490.3 ) (5.8 ) (457.5 ) Net increase (decrease) in cash and cash equivalents (177.2 ) (10.6 ) (26.9 ) 4.6 (210.1 ) 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 $ 650.5 $ 0.5 $ 62.5 $ (35.7 ) $ 677.8 Statement of Cash Flows Nine Months Ended September 30, 2014 Parent Combined Combined Eliminations Consolidated (in millions) Operating activities: Net income $ 540.0 $ 505.8 $ 224.7 $ (707.5 ) $ 563.0 Equity in earnings of subsidiaries, net of taxes (616.5 ) (104.5 ) — 721.0 — Other 71.9 (398.3 ) 106.5 (10.5 ) (230.4 ) Net cash provided (required) by operating activities (4.6 ) 3.0 331.2 3.0 332.6 Investing activities: (Increase) decrease in short-term marketable securities 149.7 — — — 149.7 Proceeds from dispositions of property 0.4 — 21.5 — 21.9 Proceeds from railcar lease fleet sales — 549.0 132.2 (423.8 ) 257.4 Capital expenditures – leasing — (164.3 ) (429.9 ) 423.8 (170.4 ) Capital expenditures – manufacturing and other (7.8 ) (100.5 ) (61.7 ) — (170.0 ) Acquisitions, net of cash acquired — (593.0 ) (118.8 ) — (711.8 ) (Increase) decrease in investment in partially-owned subsidiaries — (10.2 ) — 10.2 — Divestitures — — — — — Other — 1.5 0.5 — 2.0 Net cash provided (required) by investing activities 142.3 (317.5 ) (456.2 ) 10.2 (621.2 ) Financing activities: Proceeds from issuance of common stock, net 0.6 — — — 0.6 Excess tax benefits from stock-based compensation 24.2 — — — 24.2 Payments to retire debt (0.4 ) (2.4 ) (137.4 ) — (140.2 ) Proceeds from issuance of debt 395.4 (0.1 ) 332.1 — 727.4 (Increase) decrease in restricted cash — — 6.7 (8.9 ) (2.2 ) Shares repurchased (36.5 ) — — — (36.5 ) Dividends paid to common shareholders (38.7 ) — — — (38.7 ) Purchase of shares to satisfy employee tax on vested stock (38.5 ) — — — (38.5 ) Contributions from noncontrolling interest — — 49.6 — 49.6 Contributions from controlling interest in partially-owned subsidiaries — — 22.2 (22.2 ) — Distributions to noncontrolling interest — — (19.3 ) — (19.3 ) Distributions to controlling interest in partially-owned subsidiaries — — (12.0 ) 12.0 — Change in intercompany financing between entities (214.2 ) 317.2 (99.9 ) (3.1 ) — Other — (0.5 ) (2.1 ) — (2.6 ) Net cash provided (required) by financing activities 91.9 314.2 139.9 (22.2 ) 523.8 Net increase (decrease) in cash and cash equivalents 229.6 (0.3 ) 14.9 (9.0 ) 235.2 Cash and cash equivalents at beginning of period 409.8 2.1 44.0 (27.4 ) 428.5 Cash and cash equivalents at end of period $ 639.4 $ 1.8 $ 58.9 $ (36.4 ) $ 663.7 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | May. 31, 2015 | Apr. 30, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||||
Accounting Policies [Abstract] | ||||||||||||
Authorized amount from board of directors for share repurchase | $ 250,000,000 | |||||||||||
Shares repurchased under the program (in shares) | 1,556,516 | 407,100 | 3,947,320 | 747,246 | ||||||||
Cost of shares repurchased | $ 40,000,000 | $ 19,000,000 | $ 115,000,000 | $ 31,500,000 | ||||||||
Shares repurchased settled in the subsequent month | $ 7,500,000 | |||||||||||
Common stock, shares authorized | 400,000,000 | [1] | 400,000,000 | [1] | 400,000,000 | [1] | 400,000,000 | 200,000,000 | 200,000,000 | |||
Common Stock, Par Value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 1 | $ 0.01 | |||||||
[1] | (unaudited) |
Acquisitions and Divestitures47
Acquisitions and Divestitures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Acquisitions: | ||||
Purchase price | $ 0 | $ 593 | $ 46.2 | $ 718.3 |
Net cash paid | 0 | 593 | 46.2 | 711.8 |
Goodwill recorded | 0 | 410.2 | 0 | 496.3 |
Divestitures: | ||||
Proceeds | 0 | 0 | 51.3 | 0 |
Gain recognized | 0 | 0 | 8.2 | 0 |
Goodwill charged off | $ 0 | $ 0 | $ 17.3 | $ 0 |
Acquisitions and Divestitures48
Acquisitions and Divestitures (Details 1) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | [2] | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 754.3 | [1] | $ 773.2 | |
Meyer | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 29.4 | |||
Inventories | 35.2 | |||
Property, plant, and equipment | 70.5 | |||
Goodwill | 410.2 | |||
Other assets | 76 | |||
Accounts payable | (15.4) | |||
Accrued liabilities | (10.3) | |||
Total net assets acquired | $ 595.6 | |||
[1] | (unaudited) | |||
[2] | (as reported) |
Acquisitions and Divestitures49
Acquisitions and Divestitures (Details Textual) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015USD ($)facility | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain recognized | $ 0 | $ 0 | $ 8.2 | $ 0 | |
Texas, Mississippi, and Louisiana | Galvanizing business | Construction Products Group | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of facilities disposed | facility | 6 | ||||
Gain recognized | $ 8.2 |
Fair Value Accounting (Details)
Fair Value Accounting (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Fuel derivative instruments | |||
Liabilities: | |||
Derivative liabilities | $ 0.7 | ||
Fair value measurements, recurring | |||
Assets: | |||
Cash equivalents | 233.2 | $ 415.2 | |
Restricted cash | 211.8 | 234.7 | |
Total assets | 445 | 649.9 | |
Liabilities: | |||
Total liabilities | 2.9 | 10.5 | |
Fair value measurements, recurring | Level 1 | |||
Assets: | |||
Cash equivalents | 233.2 | 415.2 | |
Restricted cash | 211.8 | 234.7 | |
Total assets | 445 | 649.9 | |
Liabilities: | |||
Total liabilities | 0 | 0 | |
Fair value measurements, recurring | Level 2 | |||
Assets: | |||
Cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Total assets | 0 | 0 | |
Liabilities: | |||
Total liabilities | 2.9 | 10.5 | |
Fair value measurements, recurring | Level 3 | |||
Assets: | |||
Cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Total assets | 0 | 0 | |
Liabilities: | |||
Total liabilities | 0 | 0 | |
Accrued liabilities | Fair value measurements, recurring | Fuel derivative instruments | |||
Liabilities: | |||
Derivative liabilities | [1] | 0.7 | 2.1 |
Accrued liabilities | Fair value measurements, recurring | Wholly-owned subsidiaries | Interest rate hedge | |||
Liabilities: | |||
Derivative liabilities | [1] | 6.4 | |
Accrued liabilities | Fair value measurements, recurring | Partially-owned subsidiaries | Interest rate hedge | |||
Liabilities: | |||
Derivative liabilities | [1] | 2.2 | 2 |
Accrued liabilities | Fair value measurements, recurring | Level 1 | Fuel derivative instruments | |||
Liabilities: | |||
Derivative liabilities | [1] | 0 | 0 |
Accrued liabilities | Fair value measurements, recurring | Level 1 | Wholly-owned subsidiaries | Interest rate hedge | |||
Liabilities: | |||
Derivative liabilities | [1] | 0 | |
Accrued liabilities | Fair value measurements, recurring | Level 1 | Partially-owned subsidiaries | Interest rate hedge | |||
Liabilities: | |||
Derivative liabilities | [1] | 0 | 0 |
Accrued liabilities | Fair value measurements, recurring | Level 2 | Fuel derivative instruments | |||
Liabilities: | |||
Derivative liabilities | [1] | 0.7 | 2.1 |
Accrued liabilities | Fair value measurements, recurring | Level 2 | Wholly-owned subsidiaries | Interest rate hedge | |||
Liabilities: | |||
Derivative liabilities | [1] | 6.4 | |
Accrued liabilities | Fair value measurements, recurring | Level 2 | Partially-owned subsidiaries | Interest rate hedge | |||
Liabilities: | |||
Derivative liabilities | [1] | 2.2 | 2 |
Accrued liabilities | Fair value measurements, recurring | Level 3 | Fuel derivative instruments | |||
Liabilities: | |||
Derivative liabilities | [1] | 0 | 0 |
Accrued liabilities | Fair value measurements, recurring | Level 3 | Wholly-owned subsidiaries | Interest rate hedge | |||
Liabilities: | |||
Derivative liabilities | [1] | 0 | |
Accrued liabilities | Fair value measurements, recurring | Level 3 | Partially-owned subsidiaries | Interest rate hedge | |||
Liabilities: | |||
Derivative liabilities | [1] | $ 0 | $ 0 |
[1] | Included in accrued liabilities on the consolidated balance sheet. |
Fair Value Accounting (Details
Fair Value Accounting (Details 1) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Carrying amounts and estimated fair values of long-term debt | |||
Convertible subordinated notes | $ 886.6 | $ 889.3 | |
Less: unamortized discount | (48.3) | [1] | (60) |
Total recourse debt | 838.3 | [1] | 829.3 |
Non-recourse debt | 2,446.2 | 2,723.7 | |
Total debt | 3,284.5 | [1] | 3,553 |
Carrying Value | |||
Carrying amounts and estimated fair values of long-term debt | |||
Total recourse debt | 838.3 | 829.3 | |
Non-recourse debt | 2,446.2 | 2,723.7 | |
Total debt | 3,284.5 | 3,553 | |
Carrying Value | Senior notes | |||
Carrying amounts and estimated fair values of long-term debt | |||
Long-term debt | 399.6 | 399.6 | |
Carrying Value | Convertible subordinated notes | |||
Carrying amounts and estimated fair values of long-term debt | |||
Long-term debt | 401.6 | 389.9 | |
Convertible subordinated notes | 449.5 | 449.5 | |
Less: unamortized discount | (47.9) | (59.6) | |
Carrying Value | Capital lease obligations | |||
Carrying amounts and estimated fair values of long-term debt | |||
Capital lease obligations | 36.6 | 39.1 | |
Carrying Value | Other | |||
Carrying amounts and estimated fair values of long-term debt | |||
Long-term debt | 0.5 | 0.7 | |
Carrying Value | Non-recourse debt | 2006 secured railcar equipment notes | |||
Carrying amounts and estimated fair values of long-term debt | |||
Non-recourse debt | 209 | 223 | |
Carrying Value | Non-recourse debt | 2009 secured railcar equipment notes | |||
Carrying amounts and estimated fair values of long-term debt | |||
Non-recourse debt | 181.4 | 188.8 | |
Carrying Value | Non-recourse debt | 2010 secured railcar equipment notes | |||
Carrying amounts and estimated fair values of long-term debt | |||
Non-recourse debt | 300 | 311.5 | |
Carrying Value | Non-recourse debt | TRL 2012 secured railcar equipment notes (RIV 2013) | |||
Carrying amounts and estimated fair values of long-term debt | |||
Non-recourse debt | 454.5 | 472.2 | |
Carrying Value | Non-recourse debt | TRIP Master Funding secured railcar equipment notes | |||
Carrying amounts and estimated fair values of long-term debt | |||
Non-recourse debt | 1,009.6 | 1,043.7 | |
Carrying Value | Promissory notes | |||
Carrying amounts and estimated fair values of long-term debt | |||
Non-recourse debt | 0 | 363.9 | |
Carrying Value | Line of credit | Revolving credit facility | TILC warehouse facility | |||
Carrying amounts and estimated fair values of long-term debt | |||
Non-recourse debt | 291.7 | 120.6 | |
Estimated Fair Value | |||
Carrying amounts and estimated fair values of long-term debt | |||
Total recourse debt | 947.1 | 1,020.7 | |
Non-recourse debt | 2,566.6 | 2,892.3 | |
Total debt | 3,513.7 | 3,913 | |
Estimated Fair Value | Senior notes | |||
Carrying amounts and estimated fair values of long-term debt | |||
Long-term debt | 380.4 | 387 | |
Estimated Fair Value | Convertible subordinated notes | |||
Carrying amounts and estimated fair values of long-term debt | |||
Convertible subordinated notes | 529.6 | 593.9 | |
Estimated Fair Value | Capital lease obligations | |||
Carrying amounts and estimated fair values of long-term debt | |||
Capital lease obligations | 36.6 | 39.1 | |
Estimated Fair Value | Other | |||
Carrying amounts and estimated fair values of long-term debt | |||
Long-term debt | 0.5 | 0.7 | |
Estimated Fair Value | Non-recourse debt | 2006 secured railcar equipment notes | |||
Carrying amounts and estimated fair values of long-term debt | |||
Non-recourse debt | 225.6 | 245.6 | |
Estimated Fair Value | Non-recourse debt | 2009 secured railcar equipment notes | |||
Carrying amounts and estimated fair values of long-term debt | |||
Non-recourse debt | 213.1 | 227.7 | |
Estimated Fair Value | Non-recourse debt | 2010 secured railcar equipment notes | |||
Carrying amounts and estimated fair values of long-term debt | |||
Non-recourse debt | 323 | 344 | |
Estimated Fair Value | Non-recourse debt | TRL 2012 secured railcar equipment notes (RIV 2013) | |||
Carrying amounts and estimated fair values of long-term debt | |||
Non-recourse debt | 448.2 | 470.3 | |
Estimated Fair Value | Non-recourse debt | TRIP Master Funding secured railcar equipment notes | |||
Carrying amounts and estimated fair values of long-term debt | |||
Non-recourse debt | 1,065 | 1,121.4 | |
Estimated Fair Value | Promissory notes | |||
Carrying amounts and estimated fair values of long-term debt | |||
Non-recourse debt | 0 | 362.7 | |
Estimated Fair Value | Line of credit | Revolving credit facility | TILC warehouse facility | |||
Carrying amounts and estimated fair values of long-term debt | |||
Non-recourse debt | $ 291.7 | $ 120.6 | |
[1] | (unaudited) |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 1,542.2 | $ 1,562.8 | $ 4,845.7 | $ 4,508.6 |
Operating Profit (Loss) | 364.9 | 281.2 | 1,080.9 | 974.5 |
Intersegment | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 418.6 | 276.7 | 1,094.7 | 815.1 |
Total | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,960.8 | 1,839.5 | 5,940.4 | 5,323.7 |
Operating Profit (Loss) | 471.3 | 352.7 | 1,341.9 | 1,173.8 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit (Loss) | (39.7) | (36.7) | (98.7) | (89.5) |
Eliminations – Lease subsidiary | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (308.4) | (186.5) | (782.9) | (564.2) |
Operating Profit (Loss) | (65.6) | (34.3) | (163.8) | (110.5) |
Eliminations – Other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (110.2) | (90.2) | (311.8) | (250.9) |
Operating Profit (Loss) | (1.1) | (0.5) | 1.5 | 0.7 |
Rail Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 747.2 | 802.3 | 2,506.8 | 2,164.1 |
Rail Group | Intersegment | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 326.2 | 194.1 | 821.4 | 585.3 |
Rail Group | Total | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,073.4 | 996.4 | 3,328.2 | 2,749.4 |
Operating Profit (Loss) | 223.3 | 186.4 | 663.7 | 529.9 |
Construction Products Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 151.1 | 168.4 | 411.4 | 430.5 |
Construction Products Group | Intersegment | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 3.7 | 2 | 7.5 | 4.7 |
Construction Products Group | Total | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 154.8 | 170.4 | 418.9 | 435.2 |
Operating Profit (Loss) | 19.9 | 21.6 | 49.5 | 65.7 |
Inland Barge Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 164.8 | 168.4 | 505.7 | 470.7 |
Inland Barge Group | Intersegment | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Inland Barge Group | Total | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 164.8 | 168.4 | 505.7 | 470.7 |
Operating Profit (Loss) | 28.1 | 31 | 96.3 | 88.6 |
Energy Equipment Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 229.6 | 219 | 694.4 | 569.2 |
Energy Equipment Group | Intersegment | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 59.9 | 50.7 | 177.1 | 138.7 |
Energy Equipment Group | Total | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 289.5 | 269.7 | 871.5 | 707.9 |
Operating Profit (Loss) | 44.8 | 30 | 118.3 | 81.2 |
Railcar Leasing and Management Services Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 246.6 | 203 | 722.2 | 870.6 |
Railcar Leasing and Management Services Group | Intersegment | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 2.6 | 2.7 | 9.9 | 9.7 |
Railcar Leasing and Management Services Group | Total | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 249.2 | 205.7 | 732.1 | 880.3 |
Operating Profit (Loss) | 158.2 | 87 | 418.7 | 419.7 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 2.9 | 1.7 | 5.2 | 3.5 |
All Other | Intersegment | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 26.2 | 27.2 | 78.8 | 76.7 |
All Other | Total | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 29.1 | 28.9 | 84 | 80.2 |
Operating Profit (Loss) | $ (3) | $ (3.3) | $ (4.6) | $ (11.3) |
Segment Information (Details Te
Segment Information (Details Textual) | 9 Months Ended |
Sep. 30, 2015segment | |
Segment Reporting [Abstract] | |
Number of principal business segments of Company | 5 |
Partially-Owned Leasing Subsi54
Partially-Owned Leasing Subsidiaries (Details Textual) - Leasing Group $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)board_membersubsidiary | |
Partially-owned subsidiaries | |
Noncontrolling Interest [Line Items] | |
Number of subsidiaries | subsidiary | 2 |
Number of board members | board_member | 7 |
Number of TILC designated board members | board_member | 2 |
Carrying value of investment in partially-owned subsidiary | $ 227 |
Weighted average ownership interest in partially-owned subsidiary | 39.00% |
Weighted average ownership interest by institutional investors | 61.00% |
TRIP Holdings | |
Noncontrolling Interest [Line Items] | |
Remaining equity commitment outstanding (up to) | $ 5.7 |
Remaining equity commitment outstanding from third parties (up to) | $ 12.9 |
Railcar Leasing and Managemen55
Railcar Leasing and Management Services Group (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Consolidating Financial Information | |||
Cash, cash equivalents, and short-term marketable securities | $ 677.8 | $ 962.9 | |
Property, plant, and equipment, net | 5,308.4 | [1] | 4,902.9 |
Restricted cash | 211.8 | [1] | 234.7 |
Debt: | |||
Recourse | 886.6 | 889.3 | |
Less: unamortized discount | (48.3) | [1] | (60) |
Total recourse debt | 838.3 | [1] | 829.3 |
Non-recourse debt | 2,446.2 | 2,723.7 | |
Total debt | 3,284.5 | [1] | 3,553 |
Net deferred tax liabilities | 649.6 | 615 | |
Wholly-owned subsidiaries | |||
Debt: | |||
Non-recourse debt | 982.1 | [1] | 1,207.8 |
Partially-owned subsidiaries | |||
Consolidating Financial Information | |||
Restricted cash | 90.5 | [1] | 91.9 |
Debt: | |||
Non-recourse debt | 1,464.1 | [1] | 1,515.9 |
Leasing Group | |||
Debt: | |||
Non-recourse debt | 2,446.2 | 2,723.7 | |
Leasing Group | Wholly-owned subsidiaries | |||
Debt: | |||
Non-recourse debt | 982.1 | 1,207.8 | |
Leasing Group | Partially-owned subsidiaries | |||
Debt: | |||
Non-recourse debt | 1,464.1 | 1,515.9 | |
Operating segment | |||
Consolidating Financial Information | |||
Property, plant, and equipment, net | 5,950.5 | 5,460.1 | |
Operating segment | Leasing Group | Wholly-owned subsidiaries | |||
Consolidating Financial Information | |||
Cash, cash equivalents, and short-term marketable securities | 2.5 | 11.9 | |
Property, plant, and equipment, net | 3,064.3 | 2,599.2 | |
Restricted cash | 121.3 | 142.8 | |
Debt: | |||
Recourse | 36.6 | 39.1 | |
Less: unamortized discount | 0 | 0 | |
Total recourse debt | 36.6 | 39.1 | |
Non-recourse debt | 982.1 | 1,207.8 | |
Total debt | 1,018.7 | 1,246.9 | |
Net deferred tax liabilities | 656.7 | 658.2 | |
Operating segment | Leasing Group | Partially-owned subsidiaries | |||
Consolidating Financial Information | |||
Cash, cash equivalents, and short-term marketable securities | 0 | 0 | |
Property, plant, and equipment, net | 1,952.5 | 1,999.9 | |
Restricted cash | 90.5 | 91.9 | |
Debt: | |||
Recourse | 0 | 0 | |
Less: unamortized discount | 0 | 0 | |
Total recourse debt | 0 | 0 | |
Non-recourse debt | 1,464.1 | 1,515.9 | |
Total debt | 1,464.1 | 1,515.9 | |
Net deferred tax liabilities | 0.9 | 0.9 | |
Manufacturing/ Corporate | |||
Consolidating Financial Information | |||
Cash, cash equivalents, and short-term marketable securities | 675.3 | 951 | |
Property, plant, and equipment, net | 933.7 | 861 | |
Restricted cash | 0 | 0 | |
Debt: | |||
Recourse | 850 | 850.2 | |
Less: unamortized discount | (48.3) | (60) | |
Total recourse debt | 801.7 | 790.2 | |
Non-recourse debt | 0 | 0 | |
Total debt | 801.7 | 790.2 | |
Net deferred tax liabilities | (8) | (44.1) | |
Net deferred profit on railcars sold to the Leasing Group | |||
Consolidating Financial Information | |||
Property, plant, and equipment, net | $ (642.1) | $ (557.2) | |
[1] | (unaudited) |
Railcar Leasing and Managemen56
Railcar Leasing and Management Services Group (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Revenues: | |||||
Total revenues | $ 1,542.2 | $ 1,562.8 | $ 4,845.7 | $ 4,508.6 | |
Operating profit: | |||||
Total operating profit | 364.9 | 281.2 | 1,080.9 | 974.5 | |
Operating profit margin: | |||||
Depreciation | 197.9 | 171.5 | |||
Interest | 46.7 | 48.2 | 148.8 | 141.4 | |
Railcar Leasing and Management Services Group | |||||
Revenues: | |||||
Total revenues | 246.6 | 203 | 722.2 | 870.6 | |
Operating segment | |||||
Revenues: | |||||
Total revenues | 1,960.8 | 1,839.5 | 5,940.4 | 5,323.7 | |
Operating profit: | |||||
Total operating profit | 471.3 | 352.7 | 1,341.9 | 1,173.8 | |
Operating segment | Railcar Leasing and Management Services Group | |||||
Revenues: | |||||
Total revenues | $ 249.2 | 205.7 | $ 732.1 | 880.3 | |
Percent Change | 21.10% | (16.80%) | |||
Operating profit: | |||||
Total operating profit | $ 158.2 | $ 87 | $ 418.7 | $ 419.7 | |
Percent Change | 81.80% | (0.20%) | |||
Operating profit margin: | |||||
Total operating profit margin | 63.50% | 42.30% | 57.20% | 47.70% | |
Depreciation | [1] | $ 35.9 | $ 32.4 | $ 105.8 | $ 97.1 |
Percent Change, Depreciation | [1] | 10.80% | 9.00% | ||
Maintenance Costs | [1] | $ 24.6 | 17.8 | $ 65.9 | 58.8 |
Percent Change, Maintenance | [1] | 38.20% | 12.10% | ||
Rent | [1] | $ 9.9 | 13.1 | $ 31.3 | 39.7 |
Percent Change, Rent | [1] | (24.40%) | (21.20%) | ||
Interest | [1] | $ 32.5 | 39.1 | $ 106.8 | 114.5 |
Percent Change, Interest | [1] | (16.90%) | (6.70%) | ||
Operating segment | Leasing and management | Railcar Leasing and Management Services Group | |||||
Revenues: | |||||
Total revenues | $ 176.6 | 158.3 | $ 520.9 | 469.2 | |
Percent Change | 11.60% | 11.00% | |||
Operating profit: | |||||
Total operating profit | $ 81.8 | $ 74.4 | $ 254.7 | $ 213.8 | |
Percent Change | 9.90% | 19.10% | |||
Operating profit margin: | |||||
Total operating profit margin | 46.30% | 47.00% | 48.90% | 45.60% | |
Operating segment | Railcars owned one year or less at the time of sale | Railcar Leasing and Management Services Group | |||||
Revenues: | |||||
Total revenues | $ 72.6 | $ 47.4 | $ 211.2 | $ 411.1 | |
Operating profit: | |||||
Total operating profit | 18.6 | 9.6 | 61.2 | 115.7 | |
Operating segment | Railcars owned more than one year at the time of sale | Railcar Leasing and Management Services Group | |||||
Operating profit: | |||||
Total operating profit | $ 57.8 | $ 3 | $ 102.8 | $ 90.2 | |
[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 profit 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 Managemen57
Railcar Leasing and Management Services Group (Details 2) - Element Financial Corporation - USD ($) $ in Millions | 9 Months Ended | 22 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Proceeds from the sale of leased railcars | $ 616.5 | $ 767.9 | $ 1,604.2 |
Rail Group | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Proceeds from the sale of leased railcars | 175.8 | 153.4 | |
Railcars owned one year or less at the time of sale | Leasing Group | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Proceeds from the sale of leased railcars | 182.7 | 378.8 | |
Railcars owned more than one year at the time of sale | Leasing Group | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Proceeds from the sale of leased railcars | $ 258 | $ 235.7 |
Railcar Leasing and Managemen58
Railcar Leasing and Management Services Group (Details 3) - Railcars - Railcar Leasing and Management Services Group $ in Millions | Sep. 30, 2015USD ($) |
Future contractual minimum rental revenue | |
Remaining three months of 2015 | $ 137.1 |
2,016 | 486.2 |
2,017 | 412 |
2,018 | 327.9 |
2,019 | 242.9 |
Thereafter | 410.1 |
Total | $ 2,016.2 |
Railcar Leasing and Managemen59
Railcar Leasing and Management Services Group (Details 4) - Railcars leased from independent owner trusts - Railcar Leasing and Management Services Group $ in Millions | Sep. 30, 2015USD ($) |
Future operating lease obligations | |
Remaining three months of 2015 | $ 7.4 |
2,016 | 29.3 |
2,017 | 29.2 |
2,018 | 29.2 |
2,019 | 28.8 |
Thereafter | 170.2 |
Total | 294.1 |
Future contractual minimum rental revenues | |
Remaining three months of 2015 | 13.2 |
2,016 | 47.4 |
2,017 | 38.9 |
2,018 | 29.2 |
2,019 | 20.1 |
Thereafter | 35 |
Total | $ 183.8 |
Railcar Leasing and Managemen60
Railcar Leasing and Management Services Group (Details 5) - Railcars leased from other third parties - Railcar Leasing and Management Services Group $ in Millions | Sep. 30, 2015USD ($) |
Future operating lease obligations | |
Remaining three months of 2015 | $ 3.2 |
2,016 | 12.8 |
2,017 | 12.1 |
2,018 | 12 |
2,019 | 9.5 |
Thereafter | 28.7 |
Total | 78.3 |
Future contractual minimum rental revenues | |
Remaining three months of 2015 | 5.3 |
2,016 | 19.3 |
2,017 | 12.4 |
2,018 | 7.2 |
2,019 | 3.8 |
Thereafter | 5.9 |
Total | $ 53.9 |
Railcar Leasing and Managemen61
Railcar Leasing and Management Services Group (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | 22 Months Ended | |||||
Feb. 28, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Oct. 14, 2015 | Dec. 31, 2014 | |||
Segment Reporting Information [Line Items] | ||||||||
Assets | $ 8,805.3 | [1] | $ 8,805.3 | [1] | $ 8,733.8 | |||
Railcars | 5,308.4 | [1] | 5,308.4 | [1] | $ 4,902.9 | |||
Railcar Leasing and Management Services Group | Operating lease obligations guaranteed by Trinity | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating lease obligations guaranteed by Trinity Industries, Inc. and certain subsidiaries | 14.4 | 14.4 | ||||||
Railcar Leasing and Management Services Group | Wholly-owned subsidiaries | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net book value of unpledged equipment | 1,522.4 | 1,522.4 | ||||||
Railcar Leasing and Management Services Group | Wholly-owned subsidiaries | Capital lease obligations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Collateral securing debt | 44.5 | 44.5 | ||||||
Railcar Leasing and Management Services Group | Wholly-owned subsidiaries | Non-recourse debt | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Collateral securing debt | 1,474.2 | 1,474.2 | ||||||
Railcar Leasing and Management Services Group | TRIP Holdings | Non-recourse debt | TRIP Master Funding secured railcar equipment notes | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Collateral securing debt | 1,365.5 | 1,365.5 | ||||||
Railcar Leasing and Management Services Group | TRL 2012 | Non-recourse debt | TRL 2012 secured railcar equipment notes (RIV 2013) | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Collateral securing debt | 587 | 587 | ||||||
Railcar Leasing and Management Services Group | Wholly-owned qualified subsidiaries for leasing railcars from the Trusts | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Assets purchased from the Trust | $ 121.1 | |||||||
Remaining future operating lease obligations terminated | $ 105.8 | |||||||
Assets | 147.6 | 147.6 | ||||||
Cash | 53.8 | 53.8 | ||||||
Railcar Leasing and Management Services Group | Wholly-owned qualified subsidiaries for leasing railcars from the Trusts | Railcars | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Railcars | $ 67 | 67 | ||||||
Railcar Leasing and Management Services Group | Wholly-owned qualified subsidiaries for leasing railcars from the Trusts | Railcars leased from independent owner trusts | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Period of railcars leased from the Trusts under operating leases (in years) | 22 years | |||||||
Railcar Leasing and Management Services Group | Minimum | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Term of leases with third parties (in years) | 1 year | |||||||
Railcar Leasing and Management Services Group | Maximum | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Term of leases with third parties (in years) | 20 years | |||||||
Element Financial Corporation | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Proceeds from the sale of leased railcars | $ 616.5 | $ 767.9 | $ 1,604.2 | |||||
Element Financial Corporation | Subsequent event | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Amount of future railcar sales, extension of alliance with Element | $ 1,000 | |||||||
[1] | (unaudited) |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2006 | ||
Derivative [Line Items] | |||||
Total stockholders' equity | $ 3,860.3 | [1] | $ 3,397.4 | ||
Designated as hedging instrument | Interest rate swap, Expired, 2006 secured railcar equipment notes | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 200 | $ 200 | |||
Interest Rate | [2] | 4.87% | |||
Liability | $ 0 | ||||
Designated as hedging instrument | Interest rate swap, Expired, TRIP Holdings warehouse loan | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 788.5 | ||||
Interest Rate | [2] | 3.60% | |||
Liability | $ 0 | ||||
Designated as hedging instrument | Interest rate swap, Open, TRIP Master Funding secured railcar equipment notes | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 48.8 | ||||
Interest Rate | [2] | 2.62% | |||
Liability | $ 2.2 | ||||
AOCL – loss/ (income) | |||||
Derivative [Line Items] | |||||
Total stockholders' equity | (1.8) | $ (6.6) | |||
AOCL – loss/ (income) | Designated as hedging instrument | Interest rate swap, Expired, 2006 secured railcar equipment notes | |||||
Derivative [Line Items] | |||||
Total stockholders' equity | (1.1) | ||||
AOCL – loss/ (income) | Designated as hedging instrument | Interest rate swap, Expired, TRIP Holdings warehouse loan | |||||
Derivative [Line Items] | |||||
Total stockholders' equity | 8.5 | ||||
AOCL – loss/ (income) | Designated as hedging instrument | Interest rate swap, Open, TRIP Master Funding secured railcar equipment notes | |||||
Derivative [Line Items] | |||||
Total stockholders' equity | 0.9 | ||||
Noncontrolling Interest | Designated as hedging instrument | Interest rate swap, Expired, 2006 secured railcar equipment notes | |||||
Derivative [Line Items] | |||||
Total stockholders' equity | 0 | ||||
Noncontrolling Interest | Designated as hedging instrument | Interest rate swap, Expired, TRIP Holdings warehouse loan | |||||
Derivative [Line Items] | |||||
Total stockholders' equity | 11.4 | ||||
Noncontrolling Interest | Designated as hedging instrument | Interest rate swap, Open, TRIP Master Funding secured railcar equipment notes | |||||
Derivative [Line Items] | |||||
Total stockholders' equity | $ 1.2 | ||||
[1] | (unaudited) | ||||
[2] | Weighted average fixed interest rate |
Derivative Instruments (Detai63
Derivative Instruments (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Interest rate swap, Expired, 2006 secured railcar equipment notes | Interest expense | Designated as hedging instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Effect on interest expense | $ 0 | $ (0.1) | $ (0.2) | $ (0.3) | |
Expected effect during next twelve months | [1] | (0.3) | (0.3) | ||
Interest rate swap, Expired, Promissory notes | Interest expense | Designated as hedging instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Effect on interest expense | 0 | 0.7 | 1.2 | 2.2 | |
Expected effect during next twelve months | [1] | 0 | 0 | ||
Interest rate swap, Expired, TRIP Holdings warehouse loan | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Expected effect during next twelve months | 4.8 | 4.8 | |||
Interest rate swap, Expired, TRIP Holdings warehouse loan | Interest expense | Designated as hedging instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Effect on interest expense | 1.2 | 1.3 | 3.7 | 3.9 | |
Expected effect during next twelve months | [1] | 4.8 | 4.8 | ||
Interest rate swap, Open, TRIP Master Funding secured railcar equipment notes | Interest expense | Designated as hedging instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Loss on derivative, net | 0.2 | 0.4 | 0.9 | 1.2 | |
Expected effect during next twelve months | [1] | 1 | 1 | ||
Interest rate swap, Open, Promissory notes | Interest expense | Designated as hedging instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Loss on derivative, net | 0 | $ 3.8 | 5.3 | $ 11.5 | |
Expected effect during next twelve months | [1] | $ 0 | $ 0 | ||
[1] | Based on the fair value of open hedges as of September 30, 2015 |
Derivative Instruments (Detai64
Derivative Instruments (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2015 | Jul. 31, 2011 | Dec. 31, 2007 | Dec. 31, 2006 | |
Interest rate swap, Expired, TRIP Holdings warehouse loan | ||||
Derivative [Line Items] | ||||
Expected effect during next twelve months | $ 4.8 | |||
Fuel derivative instruments | ||||
Derivative [Line Items] | ||||
Derivative liabilities | 0.7 | |||
Designated as hedging instrument | Interest rate swap, Expired, 2006 secured railcar equipment notes | ||||
Derivative [Line Items] | ||||
Notional amount | 200 | $ 200 | ||
Changes in fair value of cash flow hedges which is being amortized to income (loss) | 4.5 | |||
Derivative liabilities | 0 | |||
Designated as hedging instrument | Interest rate swap, Promissory notes | ||||
Derivative [Line Items] | ||||
Notional amount | $ 370 | |||
Changes in fair value of cash flow hedges which is being amortized to income (loss) | (24.5) | |||
Designated as hedging instrument | Interest rate swap, Expired, TRIP Holdings warehouse loan | ||||
Derivative [Line Items] | ||||
Notional amount | 788.5 | |||
Derivative liabilities | $ 0 | |||
Designated as hedging instrument | TRIP Master Funding secured railcar equipment notes | ||||
Derivative [Line Items] | ||||
Notional amount | $ 94.1 |
Property, Plant, and Equipmen65
Property, Plant, and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Components of property, plant, and equipment | |||
Property, plant, and equipment | $ 7,111 | [1] | $ 6,586 |
Less accumulated depreciation | (1,802.6) | [1] | (1,683.1) |
Property, plant, and equipment, net | 5,308.4 | [1] | 4,902.9 |
Partially-owned subsidiaries | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 2,261.3 | [1] | 2,261.2 |
Less accumulated depreciation | (308.8) | [1] | (261.3) |
Manufacturing/ Corporate | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 1,819.4 | 1,681.7 | |
Less accumulated depreciation | (885.7) | (820.7) | |
Property, plant, and equipment, net | 933.7 | 861 | |
Manufacturing/ Corporate | Land | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 85.1 | 81.4 | |
Manufacturing/ Corporate | Buildings and improvements | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 572.9 | 548.2 | |
Manufacturing/ Corporate | Machinery and other | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 1,066 | 975.7 | |
Manufacturing/ Corporate | Construction in progress | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 95.4 | 76.4 | |
Operating segment | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment, net | 5,950.5 | 5,460.1 | |
Net deferred profit on railcars sold to the Leasing Group | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment, net | (642.1) | (557.2) | |
Leasing Group | Operating segment | Wholly-owned subsidiaries | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 3,672.4 | 3,200.3 | |
Less accumulated depreciation | (608.1) | (601.1) | |
Property, plant, and equipment, net | 3,064.3 | 2,599.2 | |
Leasing Group | Operating segment | Partially-owned subsidiaries | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment, net | 1,952.5 | 1,999.9 | |
Leasing Group | Operating segment | Machinery and other | Wholly-owned subsidiaries | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 10.7 | 10.7 | |
Leasing Group | Operating segment | Equipment on lease | Wholly-owned subsidiaries | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 3,661.7 | 3,189.6 | |
Leasing Group | Operating segment | Equipment on lease | Partially-owned subsidiaries | |||
Components of property, plant, and equipment | |||
Property, plant, and equipment | 2,261.3 | 2,261.2 | |
Less accumulated depreciation | $ (308.8) | $ (261.3) | |
[1] | (unaudited) |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | [2] | |
Goodwill [Line Items] | ||||
Goodwill | $ 754.3 | [1] | $ 773.2 | |
Rail Group | ||||
Goodwill [Line Items] | ||||
Goodwill | 134.6 | 134.6 | ||
Construction Products Group | ||||
Goodwill [Line Items] | ||||
Goodwill | 111 | 128.3 | ||
Energy Equipment Group | ||||
Goodwill [Line Items] | ||||
Goodwill | 506.9 | 508.5 | ||
Railcar Leasing and Management Services Group | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 1.8 | $ 1.8 | ||
[1] | (unaudited) | |||
[2] | (as reported) |
Warranties (Details)
Warranties (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in the accruals for warranties | ||||
Beginning balance | $ 20.5 | $ 17.1 | $ 17.8 | $ 14.7 |
Warranty costs incurred | (2) | (1.7) | (5.4) | (3.8) |
Warranty originations and revisions | 5.8 | 4.3 | 14.8 | 10.9 |
Warranty expirations | (1.7) | (0.7) | (4.6) | (2.8) |
Ending balance | $ 22.6 | $ 19 | $ 22.6 | $ 19 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Total recourse debt | $ 838.3 | [1] | $ 829.3 |
Non-recourse debt | 2,446.2 | 2,723.7 | |
Total debt | 3,284.5 | [1] | 3,553 |
Unamortized discount | 48.3 | [1] | 60 |
Wholly-owned subsidiaries | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 982.1 | [1] | 1,207.8 |
Partially-owned subsidiaries | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 1,464.1 | [1] | 1,515.9 |
Corporate | |||
Debt Instrument [Line Items] | |||
Long-term debt | 801.7 | 790.2 | |
Corporate | Senior notes, net of unamortized discount of $0.4 and $0.4 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 399.6 | 399.6 | |
Unamortized discount | 0.4 | 0.4 | |
Corporate | Convertible subordinated notes, net of unamortized discount of $47.9 and $59.6 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 401.6 | 389.9 | |
Unamortized discount | 47.9 | 59.6 | |
Corporate | Other | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0.5 | 0.7 | |
Leasing Group | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 2,446.2 | 2,723.7 | |
Leasing Group | Wholly-owned subsidiaries | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 982.1 | 1,207.8 | |
Leasing Group | Partially-owned subsidiaries | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 1,464.1 | 1,515.9 | |
Leasing Group | Capital lease obligations | |||
Debt Instrument [Line Items] | |||
Capital lease obligations | 36.6 | 39.1 | |
Leasing Group | Non-recourse debt | Wholly-owned subsidiaries | 2006 secured railcar equipment notes | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 209 | 223 | |
Leasing Group | Non-recourse debt | Wholly-owned subsidiaries | 2009 secured railcar equipment notes | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 181.4 | 188.8 | |
Leasing Group | Non-recourse debt | Wholly-owned subsidiaries | 2010 secured railcar equipment notes | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 300 | 311.5 | |
Leasing Group | Non-recourse debt | Partially-owned subsidiaries | TRL 2012 secured railcar equipment notes (RIV 2013) | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 454.5 | 472.2 | |
Leasing Group | Non-recourse debt | Partially-owned subsidiaries | TRIP Master Funding secured railcar equipment notes | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 1,009.6 | 1,043.7 | |
Leasing Group | Promissory notes | Wholly-owned subsidiaries | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 0 | 363.9 | |
Revolving credit facility | Corporate | Line of credit | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | 0 | |
Revolving credit facility | Leasing Group | Line of credit | Wholly-owned subsidiaries | TILC warehouse facility | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | $ 291.7 | $ 120.6 | |
[1] | (unaudited) |
Debt (Details 1)
Debt (Details 1) - Convertible subordinated notes - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Coupon rate interest | $ 4.4 | $ 4.4 | $ 13.1 | $ 13.1 |
Amortized debt discount | 4 | 3.7 | 11.7 | 10.8 |
Total interest expense recognized on the Convertible Subordinated Notes | $ 8.4 | $ 8.1 | $ 24.8 | $ 23.9 |
Debt (Details 2)
Debt (Details 2) $ in Millions | Sep. 30, 2015USD ($) |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2015 | $ 31.3 |
2,016 | 118.8 |
2,017 | 109.8 |
2,018 | 145 |
2,019 | 379 |
Thereafter | 2,548.9 |
Corporate | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2015 | 0 |
2,016 | 0.2 |
2,017 | 0.3 |
2,018 | 0 |
2,019 | 0 |
Thereafter | 849.5 |
Capital lease obligations | Leasing Group | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2015 | 0.8 |
2,016 | 3.5 |
2,017 | 3.7 |
2,018 | 28.6 |
2,019 | 0 |
Thereafter | 0 |
Non-recourse debt | Leasing Group | 2006 secured railcar equipment notes | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2015 | 4.9 |
2,016 | 21.8 |
2,017 | 23.9 |
2,018 | 25.3 |
2,019 | 28 |
Thereafter | 105.1 |
Non-recourse debt | Leasing Group | 2009 secured railcar equipment notes | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2015 | 2.2 |
2,016 | 6.5 |
2,017 | 6.3 |
2,018 | 6.4 |
2,019 | 11.2 |
Thereafter | 148.8 |
Non-recourse debt | Leasing Group | 2010 secured railcar equipment notes | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2015 | 3.8 |
2,016 | 14.9 |
2,017 | 13.7 |
2,018 | 10 |
2,019 | 7.6 |
Thereafter | 250 |
Non-recourse debt | Leasing Group | TRL 2012 secured railcar equipment notes (RIV 2013) | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2015 | 5.4 |
2,016 | 22.3 |
2,017 | 22.9 |
2,018 | 23.1 |
2,019 | 22.2 |
Thereafter | 358.6 |
Non-recourse debt | Leasing Group | TRIP Master Funding secured railcar equipment notes | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2015 | 11.8 |
2,016 | 39.8 |
2,017 | 29.2 |
2,018 | 41.8 |
2,019 | 50.1 |
Thereafter | 836.9 |
Revolving credit facility | Line of credit | Leasing Group | TILC warehouse facility | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2015 | 2.4 |
2,016 | 9.8 |
2,017 | 9.8 |
2,018 | 9.8 |
2,019 | 2.4 |
Thereafter | 0 |
Revolving credit facility | Line of credit | Leasing Group | Facility termination payments - TILC warehouse facility | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2015 | 0 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 257.5 |
Thereafter | $ 0 |
Debt (Details Textual)
Debt (Details Textual) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
May. 31, 2015USD ($) | Sep. 30, 2015USD ($)day$ / shares | Dec. 31, 2014USD ($) | May. 01, 2015USD ($) | Apr. 30, 2015USD ($) | |
Promissory notes | TRL VI | |||||
Debt Instrument [Line Items] | |||||
Effective annual interest rate yield | 5.63% | ||||
Payments to retire debt | $ 340,000,000 | ||||
Scheduled interest rate increase in May 2015 | 0.50% | ||||
Corporate | Convertible subordinated notes | |||||
Debt Instrument [Line Items] | |||||
Capital in excess of par value related to the Convertible Subordinated Notes' conversion options | $ 92,500,000 | $ 92,500,000 | |||
Effective annual interest rate yield | 8.42% | ||||
Percentage of conversion price at which Convertible Subordinated Notes are convertible (greater than or equal to) | 130.00% | ||||
Convertible debt, trading days threshold | day | 20 | ||||
Convertible debt, consecutive trading days threshold | 30 days | ||||
Conversion price of convertible subordinated notes (in dollars per share) | $ / shares | $ 25.03 | ||||
Revolving credit facility | Corporate | Line of credit | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | $ 600,000,000 | $ 425,000,000 | |||
Availability of the revolving credit facility | $ 508,400,000 | ||||
Borrowing under revolving credit facility exclusive of letters of credit | 0 | ||||
Revolving credit facility | Railcar Leasing and Management Services Group | Line of credit | TILC warehouse facility | TILC | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | $ 1,000,000,000 | ||||
Availability of the revolving credit facility | $ 708,300,000 | ||||
Effective annual interest rate yield | 2.01% | ||||
TILC warehouse loan, amount outstanding | $ 291,700,000 | ||||
TILC warehouse loan, unused portion | 708,300,000 | ||||
Letter of credit | Corporate | Line of credit | |||||
Debt Instrument [Line Items] | |||||
Used revolving credit facility for letters of credit | 91,600,000 | ||||
Letters of credit expiring in current year | $ 3,500,000 |
Other, Net (Details)
Other, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other, net (income) expense | ||||
Foreign currency exchange transactions | $ (0.5) | $ (0.2) | $ (2.3) | $ (0.1) |
Gain (loss) on equity investments | 0 | (0.1) | 0.1 | (0.7) |
Other | (0.5) | (1.3) | (1.8) | (2.1) |
Other, net | $ (1) | $ (1.6) | $ (4) | $ (2.9) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 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% | 35.00% | 35.00% |
State taxes | 1.20% | 0.90% | 1.20% | 0.90% |
Domestic production activities deduction | (1.70%) | (1.40%) | (1.80%) | (1.90%) |
Noncontrolling interest in partially-owned subsidiaries | (0.90%) | (1.00%) | (0.90%) | (1.10%) |
State adjustments | 0.00% | 1.10% | 0.10% | 0.30% |
Other, net | 0.00% | (1.40%) | 0.10% | (0.40%) |
Effective rate | 33.60% | 33.20% | 33.70% | 32.80% |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Change in unrecognized tax benefits | ||
Beginning balance | $ 62.3 | $ 55 |
Additions for tax positions related to the current year | 4.1 | 3.7 |
Additions for tax positions of prior years | 0 | 0.3 |
Reductions for tax positions of prior years | (0.1) | (0.1) |
Settlements | (0.7) | 0 |
Ending balance | $ 65.6 | $ 58.9 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)subsidiary | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Income Tax Examination [Line Items] | |||||
Additions for tax positions related to the current year | $ 4.1 | $ 3.7 | |||
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 | $ 14.2 | 15 | 14.2 | |
Total accrued interest and penalties | 12.4 | 12.4 | $ 11.6 | ||
Increase in income tax expense related to interest and penalties on unrecognized tax benefits | $ 0.3 | $ 0.2 | 0.7 | 0.6 | |
Federal and state tax authorities | |||||
Income Tax Examination [Line Items] | |||||
Additions for tax positions related to the current year | 4.1 | 3.7 | |||
State tax authorities | |||||
Income Tax Examination [Line Items] | |||||
Reductions for tax positions of prior years | $ 0.1 | $ 0.1 | |||
Subsidiaries | Foreign tax authority | |||||
Income Tax Examination [Line Items] | |||||
Number of subsidiaries | subsidiary | 2 | ||||
Number of subsidiaries, holding companies | subsidiary | 1 | ||||
Swiss subsidiary | |||||
Income Tax Examination [Line Items] | |||||
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 ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Components of Net Retirement Cost | ||||
Service cost | $ 0.1 | $ 0.2 | $ 0.3 | $ 0.4 |
Interest | 5 | 5.1 | 15 | 15.1 |
Expected return on plan assets | (7.6) | (7.8) | (22.8) | (23.2) |
Amortization of actuarial loss | 1.3 | 1 | 3.9 | 1.6 |
Defined benefit expense | (1.2) | (1.5) | (3.6) | (6.1) |
Profit sharing | 4.5 | 3.9 | 14.9 | 12.8 |
Multiemployer plan | 0.6 | 0.3 | 1.7 | 0.3 |
Net retirement cost | $ 3.9 | $ 2.7 | $ 13 | $ 7 |
Employee Retirement Plans (De77
Employee Retirement Plans (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Actual employer contributions to defined benefit plans | $ 7.4 | $ 4.1 | $ 15.5 | $ 11.7 |
Expected full year contributions by the employer to defined benefit plans | 16.2 | |||
Contributions to multiemployer plan | $ 0.6 | 1.9 | ||
Expected full year contributions by the employer to the multiemployer plan | $ 2.3 |
Accumulated Other Comprehensi78
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Changes in accumulated other comprehensive loss | |||||
Beginning balance | $ 3,397.4 | ||||
Other comprehensive loss, net of tax, before reclassifications | (6) | ||||
Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $3.3, $1.5, and $4.8 | 10 | ||||
Amounts reclassified from accumulated other comprehensive loss, tax benefit | 4.8 | ||||
Less: noncontrolling interest | $ 1.1 | $ (4.4) | (4) | $ (11.5) | |
Other comprehensive income (loss) | 2 | ||||
Ending balance | [1] | 3,860.3 | 3,860.3 | ||
Currency translation adjustments | |||||
Changes in accumulated other comprehensive loss | |||||
Beginning balance | (18.5) | ||||
Other comprehensive loss, net of tax, before reclassifications | (5.2) | ||||
Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $3.3, $1.5, and $4.8 | 0 | ||||
Amounts reclassified from accumulated other comprehensive loss, tax benefit | 0 | ||||
Other comprehensive income (loss) | (5.2) | ||||
Ending balance | (23.7) | (23.7) | |||
Currency translation adjustments, noncontrolling interest | |||||
Changes in accumulated other comprehensive loss | |||||
Less: noncontrolling interest | 0 | ||||
Unrealized loss on derivative financial instruments | |||||
Changes in accumulated other comprehensive loss | |||||
Beginning balance | (6.6) | ||||
Other comprehensive loss, net of tax, before reclassifications | (0.8) | ||||
Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $3.3, $1.5, and $4.8 | 7.6 | ||||
Amounts reclassified from accumulated other comprehensive loss, tax benefit | 3.3 | ||||
Other comprehensive income (loss) | 4.8 | ||||
Ending balance | (1.8) | (1.8) | |||
Unrealized loss on derivative financial instruments, noncontrolling interest | |||||
Changes in accumulated other comprehensive loss | |||||
Less: noncontrolling interest | (2) | ||||
Net actuarial gains/(losses) of defined benefit plans | |||||
Changes in accumulated other comprehensive loss | |||||
Beginning balance | (86.8) | ||||
Other comprehensive loss, net of tax, before reclassifications | 0 | ||||
Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $3.3, $1.5, and $4.8 | 2.4 | ||||
Amounts reclassified from accumulated other comprehensive loss, tax benefit | 1.5 | ||||
Other comprehensive income (loss) | 2.4 | ||||
Ending balance | (84.4) | (84.4) | |||
Net actuarial gains/(losses) of defined benefit plans, noncontrolling interest | |||||
Changes in accumulated other comprehensive loss | |||||
Less: noncontrolling interest | 0 | ||||
Accumulated Other Comprehensive Loss | |||||
Changes in accumulated other comprehensive loss | |||||
Beginning balance | (111.9) | ||||
Less: noncontrolling interest | (2) | ||||
Ending balance | (109.9) | (109.9) | |||
Accumulated Other Comprehensive Loss, noncontrolling interest | |||||
Changes in accumulated other comprehensive loss | |||||
Beginning balance | 401.5 | ||||
Less: noncontrolling interest | (2) | ||||
Ending balance | $ 398.6 | 398.6 | |||
Cost of revenues | |||||
Changes in accumulated other comprehensive loss | |||||
Before-tax reclassification of net actuarial gains/(losses) of defined benefit plans included in cost of revenues | $ 3.2 | ||||
[1] | (unaudited) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock-based compensation | $ 15 | $ 14.6 | $ 46.3 | $ 38.1 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Computation of basic and diluted net income attributable to Trinity Industries, Inc | ||||
Net income attributable to Trinity Industries, Inc. | $ 204.3 | $ 149.4 | $ 596.5 | $ 540 |
Unvested restricted share participation | (6) | (4.7) | (18.2) | (17.8) |
Net income attributable to Trinity Industries, Inc. – basic | $ 198.3 | $ 144.7 | $ 578.3 | $ 522.2 |
Net income attributable to Trinity Industries, Inc. - basic, Average Shares (in shares) | 150 | 151.5 | 150.6 | 150.9 |
Net income attributable to Trinity Industries, Inc. - basic, EPS (in dollars per share) | $ 1.32 | $ 0.96 | $ 3.84 | $ 3.46 |
Effect of dilutive securities: | ||||
Stock options, Income (Loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Stock options, Average Shares | 0 | 0.1 | 0 | 0.1 |
Convertible subordinated notes, Income (Loss) | $ 0 | $ 0.2 | $ 0.3 | $ 0.6 |
Convertible subordinated notes, Average Shares | 0.9 | 8 | 2.5 | 6 |
Net income attributable to Trinity Industries, Inc. – diluted | $ 198.3 | $ 144.9 | $ 578.6 | $ 522.8 |
Net income attributable to Trinity Industries, Inc. - diluted, Average Shares | 150.9 | 159.6 | 153.1 | 157 |
Net income attributable to Trinity Industries, Inc. - diluted, EPS (in dollars per share) | $ 1.31 | $ 0.91 | $ 3.78 | $ 3.33 |
Earnings Per Common Share (De81
Earnings Per Common Share (Details Textual) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Antidilutive shares excluded from EPS (in shares) | 6.3 | 6.9 | 6.9 | 7.6 |
Contingencies (Details Textual)
Contingencies (Details Textual) guard_rail in Thousands | Jun. 23, 2015USD ($) | Jun. 09, 2015USD ($) | Jul. 31, 2013Railcar | Oct. 31, 2015crash_test | Sep. 30, 2015USD ($)state | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)statecrash_testlawsuitcounty | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Mar. 11, 2015guard_rail | Oct. 20, 2014crash_test |
Loss Contingencies [Line Items] | ||||||||||||
Revenues | $ 1,542,200,000 | $ 1,562,800,000 | $ 4,845,700,000 | $ 4,508,600,000 | ||||||||
Minimum possible loss | 7,000,000 | 7,000,000 | ||||||||||
Maximum possible loss | 26,800,000 | 26,800,000 | ||||||||||
Accrued liabilities | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Total accruals | 29,300,000 | 29,300,000 | ||||||||||
Subsequent event | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of crash tests performed by VDOT | crash_test | 6 | |||||||||||
Construction Products Group | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Revenues | $ 151,100,000 | $ 168,400,000 | $ 411,400,000 | $ 430,500,000 | ||||||||
Highway Products Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of additional crash tests requested | crash_test | 8 | |||||||||||
Number of additional crash tests passed, first installation height | crash_test | 4 | |||||||||||
Number of additional crash tests passed, second installation height | crash_test | 4 | |||||||||||
Number of ET Plus devices field measured by FHWA engineers (more than) | guard_rail | 1 | |||||||||||
Highway Products Litigation | ET Plus | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of states that have removed product from qualified products list | state | 40 | 40 | ||||||||||
Highway Products Litigation | UNITED STATES | Construction Products Group | ET Plus | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Revenues | $ 0 | $ 35,100,000 | $ 46,000,000 | |||||||||
Highway Products Litigation | UNITED STATES | Construction Products Group | ET Plus | ET Plus concentration | Revenues | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Concentration percentage | 0.60% | 1.10% | ||||||||||
Highway Products Litigation | False Claims Act, USA | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Damages awarded by jury verdict | $ 175,000,000 | |||||||||||
Total amount of judgment entered by the District Court | 682,400,000 | |||||||||||
Damages awarded by jury verdict, automatically trebled under the Act | 525,000,000 | |||||||||||
Civil penalties included in judgment entered by the District Court | 138,400,000 | |||||||||||
Costs and attorney's fees included in judgment entered by the District Court | $ 19,000,000 | |||||||||||
Amount of supersedeas bond posted | $ 686,000,000 | |||||||||||
Initial annual premium of supersedeas bond | $ 3,900,000 | |||||||||||
Total accruals | $ 0 | 0 | ||||||||||
Highway Products Litigation | State, county, and municipal actions | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Total accruals | 0 | $ 0 | ||||||||||
Number of additional separate state qui tam actions filed | lawsuit | 5 | |||||||||||
Number of class action lawsuits | crash_test | 3 | |||||||||||
Number of other counties claimed as parties to class action suit | county | 101 | |||||||||||
Compensatory damages sought | $ 400,000,000 | |||||||||||
Punitive damages sought | 100,000,000 | |||||||||||
Highway Products Litigation | Class Action, Shareholder | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Total accruals | 0 | 0 | ||||||||||
Train Derailment | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of tank cars manufactured by the Company | Railcar | 35 | |||||||||||
Number of tank cars involved in derailment | Railcar | 72 | |||||||||||
Train Derailment | Yannick Gagne and Guy Oullet vs. Rail World, Inc | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of tank cars owned by the Company and leased to third party | Railcar | 13 | |||||||||||
Environmental and workplace matters | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Total accruals | $ 5,000,000 | $ 5,000,000 |
Financial Statements for Guar83
Financial Statements for Guarantors of the Senior Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | $ 1,542.2 | $ 1,562.8 | $ 4,845.7 | $ 4,508.6 |
Cost of revenues | 1,109.4 | 1,172.2 | 3,540.1 | 3,344.5 |
Selling, engineering, and administrative expenses | 126.6 | 113 | 339.3 | 293 |
Gains on dispositions of property | 58.7 | 3.6 | 114.6 | 103.4 |
Cost of revenues and operating costs | 1,177.3 | 1,281.6 | 3,764.8 | 3,534.1 |
Total operating profit | 364.9 | 281.2 | 1,080.9 | 974.5 |
Other (income) expense | 45.1 | 46.2 | 143.2 | 137 |
Equity in earnings of subsidiaries, net of taxes | 0 | 0 | 0 | 0 |
Income before income taxes | 319.8 | 235 | 937.7 | 837.5 |
Provision (benefit) for income taxes | 107.6 | 78.1 | 315.7 | 274.5 |
Net income | 212.2 | 156.9 | 622 | 563 |
Net income attributable to noncontrolling interest | 7.9 | 7.5 | 25.5 | 23 |
Net income attributable to Trinity Industries, Inc. | 204.3 | 149.4 | 596.5 | 540 |
Other comprehensive income (loss) | (1.1) | 4.4 | 4 | 11.5 |
Comprehensive income | 211.1 | 161.3 | 626 | 574.5 |
Comprehensive income attributable to noncontrolling interest | 8.4 | 8.6 | 27.5 | 25.4 |
Comprehensive income attributable to Trinity Industries, Inc. | 202.7 | 152.7 | 598.5 | 549.1 |
Reportable legal entities | Parent | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Cost of revenues | 0.1 | 0.4 | (1.8) | 0.4 |
Selling, engineering, and administrative expenses | 38.5 | 37.4 | 94.5 | 87.5 |
Gains on dispositions of property | 0.2 | 0.1 | 1.7 | (0.1) |
Cost of revenues and operating costs | 38.4 | 37.7 | 91 | 88 |
Total operating profit | (38.4) | (37.7) | (91) | (88) |
Other (income) expense | 4.8 | 5.5 | 11.9 | 13.7 |
Equity in earnings of subsidiaries, net of taxes | 283.3 | 211.1 | 726.4 | 616.5 |
Income before income taxes | 240.1 | 167.9 | 623.5 | 514.8 |
Provision (benefit) for income taxes | 35.8 | 18.5 | 27 | (25.2) |
Net income | 204.3 | 149.4 | 596.5 | 540 |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to Trinity Industries, Inc. | 204.3 | 149.4 | 596.5 | 540 |
Other comprehensive income (loss) | (1) | 0.8 | (0.1) | 2.1 |
Comprehensive income | 203.3 | 150.2 | 596.4 | 542.1 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Trinity Industries, Inc. | 203.3 | 150.2 | 596.4 | 542.1 |
Reportable legal entities | Combined Guarantor Subsidiaries | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 1,084.3 | 1,048.2 | 3,484.2 | 3,055.9 |
Cost of revenues | 818.6 | 823.9 | 2,708 | 2,346.1 |
Selling, engineering, and administrative expenses | 41.2 | 33.5 | 112.4 | 84.2 |
Gains on dispositions of property | 31 | 0.1 | 38.9 | 41.3 |
Cost of revenues and operating costs | 828.8 | 857.3 | 2,781.5 | 2,389 |
Total operating profit | 255.5 | 190.9 | 702.7 | 666.9 |
Other (income) expense | 7.8 | 2.7 | 23.8 | 10.3 |
Equity in earnings of subsidiaries, net of taxes | 56.9 | 28.1 | 181.5 | 104.5 |
Income before income taxes | 304.6 | 216.3 | 860.4 | 761.1 |
Provision (benefit) for income taxes | 96.5 | 43 | 276.5 | 255.3 |
Net income | 208.1 | 173.3 | 583.9 | 505.8 |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to Trinity Industries, Inc. | 208.1 | 173.3 | 583.9 | 505.8 |
Other comprehensive income (loss) | 0 | 0 | (0.5) | 0 |
Comprehensive income | 208.1 | 173.3 | 583.4 | 505.8 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Trinity Industries, Inc. | 208.1 | 173.3 | 583.4 | 505.8 |
Reportable legal entities | Combined Non-Guarantor Subsidiaries | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 678.3 | 716.3 | 2,049.6 | 2,019.5 |
Cost of revenues | 513.2 | 549.8 | 1,534.4 | 1,565.3 |
Selling, engineering, and administrative expenses | 46.9 | 42.1 | 132.4 | 121.3 |
Gains on dispositions of property | 27.5 | 3.4 | 74 | 62.2 |
Cost of revenues and operating costs | 532.6 | 588.5 | 1,592.8 | 1,624.4 |
Total operating profit | 145.7 | 127.8 | 456.8 | 395.1 |
Other (income) expense | 32.5 | 38 | 107.5 | 113 |
Equity in earnings of subsidiaries, net of taxes | 0 | 0 | 0 | 0 |
Income before income taxes | 113.2 | 89.8 | 349.3 | 282.1 |
Provision (benefit) for income taxes | 21.1 | 21.3 | 54.3 | 57.4 |
Net income | 92.1 | 68.5 | 295 | 224.7 |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to Trinity Industries, Inc. | 92.1 | 68.5 | 295 | 224.7 |
Other comprehensive income (loss) | (0.1) | 3.6 | 4.6 | 9.4 |
Comprehensive income | 92 | 72.1 | 299.6 | 234.1 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Trinity Industries, Inc. | 92 | 72.1 | 299.6 | 234.1 |
Eliminations | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | (220.4) | (201.7) | (688.1) | (566.8) |
Cost of revenues | (222.5) | (201.9) | (700.5) | (567.3) |
Selling, engineering, and administrative expenses | 0 | 0 | 0 | 0 |
Gains on dispositions of property | 0 | 0 | 0 | 0 |
Cost of revenues and operating costs | (222.5) | (201.9) | (700.5) | (567.3) |
Total operating profit | 2.1 | 0.2 | 12.4 | 0.5 |
Other (income) expense | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries, net of taxes | (340.2) | (239.2) | (907.9) | (721) |
Income before income taxes | (338.1) | (239) | (895.5) | (720.5) |
Provision (benefit) for income taxes | (45.8) | (4.7) | (42.1) | (13) |
Net income | (292.3) | (234.3) | (853.4) | (707.5) |
Net income attributable to noncontrolling interest | 7.9 | 7.5 | 25.5 | 23 |
Net income attributable to Trinity Industries, Inc. | (300.2) | (241.8) | (878.9) | (730.5) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income | (292.3) | (234.3) | (853.4) | (707.5) |
Comprehensive income attributable to noncontrolling interest | 8.4 | 8.6 | 27.5 | 25.4 |
Comprehensive income attributable to Trinity Industries, Inc. | $ (300.7) | $ (242.9) | $ (880.9) | $ (732.9) |
Financial Statements for Guar84
Financial Statements for Guarantors of the Senior Notes (Details 1) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Assets: | |||||
Cash and cash equivalents | $ 677.8 | [1] | $ 887.9 | $ 663.7 | $ 428.5 |
Short-term marketable securities | 0 | [1] | 75 | ||
Receivables, net of allowance | 481.7 | [1] | 405.3 | ||
Income tax receivable | 26.2 | [1] | 58.6 | ||
Inventory | 1,020.9 | [1] | 1,068.4 | ||
Property, plant, and equipment, net | 5,308.4 | [1] | 4,902.9 | ||
Investments in and advances to subsidiaries | 0 | 0 | |||
Restricted cash | 211.8 | [1] | 234.7 | ||
Goodwill and other assets | 1,078.5 | 1,101 | |||
Total assets | 8,805.3 | [1] | 8,733.8 | ||
Liabilities: | |||||
Accounts payable | 294.6 | [1] | 295.4 | ||
Accrued liabilities | 557.5 | [1] | 709.6 | ||
Debt | 3,284.5 | [1] | 3,553 | ||
Deferred income | 27.4 | [1] | 36.4 | ||
Deferred income taxes | 665.8 | [1] | 632.6 | ||
Advances from subsidiaries | 0 | 0 | |||
Other liabilities | 115.2 | [1] | 109.4 | ||
Total stockholders' equity | 3,860.3 | [1] | 3,397.4 | ||
Total liabilities and stockholders' equity | 8,805.3 | [1] | 8,733.8 | ||
Reportable legal entities | Parent | |||||
Assets: | |||||
Cash and cash equivalents | 650.5 | 827.7 | 639.4 | 409.8 | |
Short-term marketable securities | 0 | 75 | |||
Receivables, net of allowance | 0 | 0 | |||
Income tax receivable | 26.2 | 58.6 | |||
Inventory | 0 | 0 | |||
Property, plant, and equipment, net | 33 | 29.3 | |||
Investments in and advances to subsidiaries | 5,785.4 | 4,431.1 | |||
Restricted cash | 0 | 0 | |||
Goodwill and other assets | 160.4 | 180.6 | |||
Total assets | 6,655.5 | 5,602.3 | |||
Liabilities: | |||||
Accounts payable | 10.7 | 15 | |||
Accrued liabilities | 147.7 | 235.8 | |||
Debt | 801.2 | 789.5 | |||
Deferred income | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Advances from subsidiaries | 1,737.3 | 1,072 | |||
Other liabilities | 98.3 | 92.6 | |||
Total stockholders' equity | 3,860.3 | 3,397.4 | |||
Total liabilities and stockholders' equity | 6,655.5 | 5,602.3 | |||
Reportable legal entities | Combined Guarantor Subsidiaries | |||||
Assets: | |||||
Cash and cash equivalents | 0.5 | 11.1 | 1.8 | 2.1 | |
Short-term marketable securities | 0 | 0 | |||
Receivables, net of allowance | 274.6 | 187.5 | |||
Income tax receivable | 0 | 0 | |||
Inventory | 742.1 | 801.9 | |||
Property, plant, and equipment, net | 1,540.9 | 813.6 | |||
Investments in and advances to subsidiaries | 3,319.6 | 2,610.6 | |||
Restricted cash | 0 | 0 | |||
Goodwill and other assets | 581.5 | 575.5 | |||
Total assets | 6,459.2 | 5,000.2 | |||
Liabilities: | |||||
Accounts payable | 135.2 | 155.5 | |||
Accrued liabilities | 250.7 | 280.3 | |||
Debt | 36.6 | 39.1 | |||
Deferred income | 25.6 | 34.5 | |||
Deferred income taxes | 640.1 | 634.1 | |||
Advances from subsidiaries | 0 | 0 | |||
Other liabilities | 13.9 | 13 | |||
Total stockholders' equity | 5,357.1 | 3,843.7 | |||
Total liabilities and stockholders' equity | 6,459.2 | 5,000.2 | |||
Reportable legal entities | Combined Non-Guarantor Subsidiaries | |||||
Assets: | |||||
Cash and cash equivalents | 62.5 | 89.4 | 58.9 | 44 | |
Short-term marketable securities | 0 | 0 | |||
Receivables, net of allowance | 207.4 | 218.2 | |||
Income tax receivable | 0 | 0 | |||
Inventory | 300.8 | 284.6 | |||
Property, plant, and equipment, net | 4,225.3 | 4,624.3 | |||
Investments in and advances to subsidiaries | 689.6 | 526.4 | |||
Restricted cash | 176.1 | 194.4 | |||
Goodwill and other assets | 341 | 375.1 | |||
Total assets | 6,002.7 | 6,312.4 | |||
Liabilities: | |||||
Accounts payable | 149.1 | 125.5 | |||
Accrued liabilities | 159.1 | 193.5 | |||
Debt | 2,446.7 | 2,724.4 | |||
Deferred income | 1.8 | 1.9 | |||
Deferred income taxes | 13.5 | 12.1 | |||
Advances from subsidiaries | 0 | 0 | |||
Other liabilities | 3 | 3.8 | |||
Total stockholders' equity | 3,229.5 | 3,251.2 | |||
Total liabilities and stockholders' equity | 6,002.7 | 6,312.4 | |||
Eliminations | |||||
Assets: | |||||
Cash and cash equivalents | (35.7) | (40.3) | $ (36.4) | $ (27.4) | |
Short-term marketable securities | 0 | 0 | |||
Receivables, net of allowance | (0.3) | (0.4) | |||
Income tax receivable | 0 | 0 | |||
Inventory | (22) | (18.1) | |||
Property, plant, and equipment, net | (490.8) | (564.3) | |||
Investments in and advances to subsidiaries | (9,794.6) | (7,568.1) | |||
Restricted cash | 35.7 | 40.3 | |||
Goodwill and other assets | (4.4) | (30.2) | |||
Total assets | (10,312.1) | (8,181.1) | |||
Liabilities: | |||||
Accounts payable | (0.4) | (0.6) | |||
Accrued liabilities | 0 | 0 | |||
Debt | 0 | 0 | |||
Deferred income | 0 | 0 | |||
Deferred income taxes | 12.2 | (13.6) | |||
Advances from subsidiaries | (1,737.3) | (1,072) | |||
Other liabilities | 0 | 0 | |||
Total stockholders' equity | (8,586.6) | (7,094.9) | |||
Total liabilities and stockholders' equity | $ (10,312.1) | $ (8,181.1) | |||
[1] | (unaudited) |
Financial Statements for Guar85
Financial Statements for Guarantors of the Senior Notes (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||
Operating activities: | ||||||
Net income | $ 212.2 | $ 156.9 | $ 622 | $ 563 | ||
Equity in earnings of subsidiaries, net of taxes | 0 | 0 | 0 | 0 | ||
Other | 8.3 | (230.4) | ||||
Net cash provided (required) by operating activities | 630.3 | 332.6 | ||||
Investing activities: | ||||||
(Increase) decrease in short-term marketable securities | 75 | 149.7 | ||||
Proceeds from dispositions of property | 6.1 | 21.9 | ||||
Proceeds from railcar lease fleet sales | 313.4 | 257.4 | ||||
Capital expenditures – leasing | (642.2) | (170.4) | ||||
Capital expenditures – manufacturing and other | (145.1) | (170) | ||||
Acquisitions, net of cash acquired | 0 | (593) | (46.2) | (711.8) | ||
(Increase) decrease in investment in partially-owned subsidiaries | 0 | 0 | ||||
Divestitures | 51.3 | 0 | ||||
Other | 4.8 | 2 | ||||
Net cash provided (required) by investing activities | (382.9) | (621.2) | ||||
Financing activities: | ||||||
Proceeds from issuance of common stock, net | 0.2 | 0.6 | ||||
Excess tax benefits from stock-based compensation | 13.1 | 24.2 | ||||
Payments to retire debt | (530.8) | (140.2) | ||||
Proceeds from issuance of debt | 242.4 | 727.4 | ||||
(Increase) decrease in restricted cash | 32.3 | (2.2) | ||||
Shares repurchased | (107.5) | (36.5) | ||||
Dividends paid to common shareholders | (48) | (38.7) | ||||
Purchase of shares to satisfy employee tax on vested stock | (27.4) | (38.5) | ||||
Contributions from noncontrolling interest | 0 | 49.6 | ||||
Contributions from controlling interest in partially-owned subsidiaries | 0 | 0 | ||||
Distributions to noncontrolling interest | (30.4) | (19.3) | ||||
Distributions to controlling interest in partially-owned subsidiaries | 0 | 0 | ||||
Change in intercompany financing between entities | 0 | 0 | ||||
Other | (1.4) | (2.6) | ||||
Net cash provided (required) by financing activities | (457.5) | 523.8 | ||||
Net (decrease) increase in cash and cash equivalents | (210.1) | 235.2 | ||||
Cash and cash equivalents at beginning of period | 887.9 | 428.5 | ||||
Cash and cash equivalents at end of period | 677.8 | [1] | 663.7 | 677.8 | [1] | 663.7 |
Reportable legal entities | Parent | ||||||
Operating activities: | ||||||
Net income | 204.3 | 149.4 | 596.5 | 540 | ||
Equity in earnings of subsidiaries, net of taxes | (283.3) | (211.1) | (726.4) | (616.5) | ||
Other | 20.5 | 71.9 | ||||
Net cash provided (required) by operating activities | (109.4) | (4.6) | ||||
Investing activities: | ||||||
(Increase) decrease in short-term marketable securities | 75 | 149.7 | ||||
Proceeds from dispositions of property | 0 | 0.4 | ||||
Proceeds from railcar lease fleet sales | 0 | 0 | ||||
Capital expenditures – leasing | 0 | 0 | ||||
Capital expenditures – manufacturing and other | (8.4) | (7.8) | ||||
Acquisitions, net of cash acquired | 0 | 0 | ||||
(Increase) decrease in investment in partially-owned subsidiaries | 0 | 0 | ||||
Divestitures | 0 | 0 | ||||
Other | 0 | 0 | ||||
Net cash provided (required) by investing activities | 66.6 | 142.3 | ||||
Financing activities: | ||||||
Proceeds from issuance of common stock, net | 0.2 | 0.6 | ||||
Excess tax benefits from stock-based compensation | 13.1 | 24.2 | ||||
Payments to retire debt | 0 | (0.4) | ||||
Proceeds from issuance of debt | (1.5) | 395.4 | ||||
(Increase) decrease in restricted cash | 0 | 0 | ||||
Shares repurchased | (107.5) | (36.5) | ||||
Dividends paid to common shareholders | (48) | (38.7) | ||||
Purchase of shares to satisfy employee tax on vested stock | (27.3) | (38.5) | ||||
Contributions from noncontrolling interest | 0 | 0 | ||||
Contributions from controlling interest in partially-owned subsidiaries | 0 | 0 | ||||
Distributions to noncontrolling interest | 0 | 0 | ||||
Distributions to controlling interest in partially-owned subsidiaries | 0 | 0 | ||||
Change in intercompany financing between entities | 36.6 | (214.2) | ||||
Other | 0 | 0 | ||||
Net cash provided (required) by financing activities | (134.4) | 91.9 | ||||
Net (decrease) increase in cash and cash equivalents | (177.2) | 229.6 | ||||
Cash and cash equivalents at beginning of period | 827.7 | 409.8 | ||||
Cash and cash equivalents at end of period | 650.5 | 639.4 | 650.5 | 639.4 | ||
Reportable legal entities | Combined Guarantor Subsidiaries | ||||||
Operating activities: | ||||||
Net income | 208.1 | 173.3 | 583.9 | 505.8 | ||
Equity in earnings of subsidiaries, net of taxes | (56.9) | (28.1) | (181.5) | (104.5) | ||
Other | (81.2) | (398.3) | ||||
Net cash provided (required) by operating activities | 321.2 | 3 | ||||
Investing activities: | ||||||
(Increase) decrease in short-term marketable securities | 0 | 0 | ||||
Proceeds from dispositions of property | 1.9 | 0 | ||||
Proceeds from railcar lease fleet sales | 142.1 | 549 | ||||
Capital expenditures – leasing | (638.1) | (164.3) | ||||
Capital expenditures – manufacturing and other | (30.9) | (100.5) | ||||
Acquisitions, net of cash acquired | 0 | (593) | ||||
(Increase) decrease in investment in partially-owned subsidiaries | 19.3 | (10.2) | ||||
Divestitures | 0 | 0 | ||||
Other | 0.9 | 1.5 | ||||
Net cash provided (required) by investing activities | (504.8) | (317.5) | ||||
Financing activities: | ||||||
Proceeds from issuance of common stock, net | 0 | 0 | ||||
Excess tax benefits from stock-based compensation | 0 | 0 | ||||
Payments to retire debt | (2.5) | (2.4) | ||||
Proceeds from issuance of debt | 0 | (0.1) | ||||
(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 | ||||
Contributions from noncontrolling interest | 0 | 0 | ||||
Contributions from controlling interest in partially-owned subsidiaries | 0 | 0 | ||||
Distributions to noncontrolling interest | 0 | 0 | ||||
Distributions to controlling interest in partially-owned subsidiaries | 0 | 0 | ||||
Change in intercompany financing between entities | 175.5 | 317.2 | ||||
Other | 0 | (0.5) | ||||
Net cash provided (required) by financing activities | 173 | 314.2 | ||||
Net (decrease) increase in cash and cash equivalents | (10.6) | (0.3) | ||||
Cash and cash equivalents at beginning of period | 11.1 | 2.1 | ||||
Cash and cash equivalents at end of period | 0.5 | 1.8 | 0.5 | 1.8 | ||
Reportable legal entities | Combined Non-Guarantor Subsidiaries | ||||||
Operating activities: | ||||||
Net income | 92.1 | 68.5 | 295 | 224.7 | ||
Equity in earnings of subsidiaries, net of taxes | 0 | 0 | 0 | 0 | ||
Other | 93.8 | 106.5 | ||||
Net cash provided (required) by operating activities | 388.8 | 331.2 | ||||
Investing activities: | ||||||
(Increase) decrease in short-term marketable securities | 0 | 0 | ||||
Proceeds from dispositions of property | 4.2 | 21.5 | ||||
Proceeds from railcar lease fleet sales | 214.5 | 132.2 | ||||
Capital expenditures – leasing | (47.3) | (429.9) | ||||
Capital expenditures – manufacturing and other | (105.8) | (61.7) | ||||
Acquisitions, net of cash acquired | (46.2) | (118.8) | ||||
(Increase) decrease in investment in partially-owned subsidiaries | 0 | 0 | ||||
Divestitures | 51.3 | 0 | ||||
Other | 3.9 | 0.5 | ||||
Net cash provided (required) by investing activities | 74.6 | (456.2) | ||||
Financing activities: | ||||||
Proceeds from issuance of common stock, net | 0 | 0 | ||||
Excess tax benefits from stock-based compensation | 0 | 0 | ||||
Payments to retire debt | (528.3) | (137.4) | ||||
Proceeds from issuance of debt | 243.9 | 332.1 | ||||
(Increase) decrease in restricted cash | 27.7 | 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 | ||||
Contributions from noncontrolling interest | 0 | 49.6 | ||||
Contributions from controlling interest in partially-owned subsidiaries | 0 | 22.2 | ||||
Distributions to noncontrolling interest | (30.4) | (19.3) | ||||
Distributions to controlling interest in partially-owned subsidiaries | (19.3) | (12) | ||||
Change in intercompany financing between entities | (182.4) | (99.9) | ||||
Other | (1.5) | (2.1) | ||||
Net cash provided (required) by financing activities | (490.3) | 139.9 | ||||
Net (decrease) increase in cash and cash equivalents | (26.9) | 14.9 | ||||
Cash and cash equivalents at beginning of period | 89.4 | 44 | ||||
Cash and cash equivalents at end of period | 62.5 | 58.9 | 62.5 | 58.9 | ||
Eliminations | ||||||
Operating activities: | ||||||
Net income | (292.3) | (234.3) | (853.4) | (707.5) | ||
Equity in earnings of subsidiaries, net of taxes | 340.2 | 239.2 | 907.9 | 721 | ||
Other | (24.8) | (10.5) | ||||
Net cash provided (required) by operating activities | 29.7 | 3 | ||||
Investing activities: | ||||||
(Increase) decrease in short-term marketable securities | 0 | 0 | ||||
Proceeds from dispositions of property | 0 | 0 | ||||
Proceeds from railcar lease fleet sales | (43.2) | (423.8) | ||||
Capital expenditures – leasing | 43.2 | 423.8 | ||||
Capital expenditures – manufacturing and other | 0 | 0 | ||||
Acquisitions, net of cash acquired | 0 | 0 | ||||
(Increase) decrease in investment in partially-owned subsidiaries | (19.3) | 10.2 | ||||
Divestitures | 0 | 0 | ||||
Other | 0 | 0 | ||||
Net cash provided (required) by investing activities | (19.3) | 10.2 | ||||
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 | ||||
Proceeds from issuance of debt | 0 | 0 | ||||
(Increase) decrease in restricted cash | 4.6 | (8.9) | ||||
Shares repurchased | 0 | 0 | ||||
Dividends paid to common shareholders | 0 | 0 | ||||
Purchase of shares to satisfy employee tax on vested stock | 0 | 0 | ||||
Contributions from noncontrolling interest | 0 | 0 | ||||
Contributions from controlling interest in partially-owned subsidiaries | 0 | (22.2) | ||||
Distributions to noncontrolling interest | 0 | 0 | ||||
Distributions to controlling interest in partially-owned subsidiaries | 19.3 | 12 | ||||
Change in intercompany financing between entities | (29.7) | (3.1) | ||||
Other | 0 | 0 | ||||
Net cash provided (required) by financing activities | (5.8) | (22.2) | ||||
Net (decrease) increase in cash and cash equivalents | 4.6 | (9) | ||||
Cash and cash equivalents at beginning of period | (40.3) | (27.4) | ||||
Cash and cash equivalents at end of period | $ (35.7) | $ (36.4) | $ (35.7) | $ (36.4) | ||
[1] | (unaudited) |
Financial Statements for Guar86
Financial Statements for Guarantors of the Senior Notes (Details Textual) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Restricted cash | $ 211.8 | [1] | $ 234.7 |
Assets | 8,805.3 | [1] | 8,733.8 |
Combined Non-Guarantor Subsidiaries | Foreign locations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Assets | 370.9 | 395.5 | |
Combined Non-Guarantor Subsidiaries | Non-recourse debt | |||
Condensed Financial Statements, Captions [Line Items] | |||
Collateral securing debt | 3,484.7 | 3,936.8 | |
Combined Non-Guarantor Subsidiaries | Capital lease obligations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Collateral securing debt | 70.3 | 87.5 | |
Combined Non-Guarantor Subsidiaries | Reportable legal entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Restricted cash | 176.1 | 194.4 | |
Assets | $ 6,002.7 | $ 6,312.4 | |
[1] | (unaudited) |