Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | TRINITY INDUSTRIES INC | ||
Entity Central Index Key | 99,780 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 152,189,108 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,780.4 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Total revenues | $ 4,588.3 | $ 6,392.7 | $ 6,170 |
Cost of revenues: | |||
Total cost of revenues | 3,456.1 | 4,656.2 | 4,619.8 |
Selling, engineering, and administrative expenses: | |||
Total selling, engineering, and administrative expenses | 407.4 | 476.4 | 403.6 |
Gains on disposition of property: | |||
Net gains on railcar lease fleet sales owned more than one year at the time of sale | 13.5 | 166.1 | 92.3 |
Other | 3.9 | 12.7 | 12.1 |
Total gains on disposition of property | 17.4 | 178.8 | 104.4 |
Total operating profit | 742.2 | 1,438.9 | 1,251 |
Other (income) expense: | |||
Interest income | (5.4) | (2.2) | (1.9) |
Interest expense | 181.9 | 194.7 | 193.4 |
Other, net | (1.1) | (5.6) | (4.6) |
Total other (income) expense | 175.4 | 186.9 | 186.9 |
Income before income taxes | 566.8 | 1,252 | 1,064.1 |
Provision (benefit) for income taxes: | |||
Current | (119.3) | 309.4 | 360.6 |
Deferred | 321.4 | 116.6 | (5.8) |
Total provision for income taxes | 202.1 | 426 | 354.8 |
Discontinued operations: | |||
Net income | 364.7 | 826 | 709.3 |
Net income attributable to noncontrolling interest | 21.1 | 29.5 | 31.1 |
Net income attributable to Trinity Industries, Inc. | $ 343.6 | $ 796.5 | $ 678.2 |
Basic: | |||
Basic (in dollars per share) | $ 2.25 | $ 5.14 | $ 4.35 |
Diluted: | |||
Diluted (in dollars per share) | $ 2.25 | $ 5.08 | $ 4.19 |
Weighted average number of shares outstanding: | |||
Basic (in shares) | 148.4 | 150.2 | 151 |
Diluted (in shares) | 148.6 | 152.2 | 156.7 |
Dividends declared per common share (in dollars per share) | $ 0.44 | $ 0.43 | $ 0.375 |
Manufacturing | |||
Revenues: | |||
Total revenues | $ 3,763.4 | $ 5,301.1 | $ 5,063.6 |
Cost of revenues: | |||
Total cost of revenues | 3,019.6 | 4,043.9 | 3,975.1 |
Selling, engineering, and administrative expenses: | |||
Total selling, engineering, and administrative expenses | 231 | 271.4 | 235 |
Leasing | |||
Revenues: | |||
Total revenues | 824.9 | 1,091.6 | 1,106.4 |
Cost of revenues: | |||
Total cost of revenues | 436.5 | 612.3 | 644.7 |
Selling, engineering, and administrative expenses: | |||
Total selling, engineering, and administrative expenses | 45.4 | 52.4 | 49.6 |
Other | |||
Selling, engineering, and administrative expenses: | |||
Total selling, engineering, and administrative expenses | $ 131 | $ 152.6 | $ 119 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 364.7 | $ 826 | $ 709.3 |
Derivative financial instruments: | |||
Unrealized losses arising during the period, net of tax benefit of $-, $0.2, and $0.6 | (0.3) | (0.7) | (1.2) |
Reclassification adjustments for losses included in net income, net of tax benefit of $0.7, $3.4, and $8.4 | 4.6 | 9 | 16 |
Currency translation adjustment | 0.8 | (6) | (2) |
Defined benefit plans: | |||
Unrealized losses arising during the period, net of tax benefit of $2.0, $3.4, and $26.7 | (3.3) | (6) | (45.1) |
Amortization of net actuarial losses, net of tax benefit of $1.9, $1.8, and $0.8 | 3.2 | 3.2 | 1.3 |
Total other comprehensive income (loss) | 5 | (0.5) | (31) |
Comprehensive income | 369.7 | 825.5 | 678.3 |
Less: comprehensive income attributable to noncontrolling interest | 24.2 | 32.5 | 34.1 |
Comprehensive income attributable to Trinity Industries, Inc. | $ 345.5 | $ 793 | $ 644.2 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gains (losses) arising during the period, tax expense (benefit) | $ 0 | $ (0.2) | $ (0.6) |
Reclassification adjustments for losses included in net income, tax benefit | 0.7 | 3.4 | 8.4 |
Unrealized gains (losses) arising during the period, tax expense (benefit) | (2) | (3.4) | (26.7) |
Amortization of net actuarial losses, tax benefit | $ 1.9 | $ 1.8 | $ 0.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 563.4 | $ 786 |
Short-term marketable securities | 234.7 | 84.9 |
Receivables, net of allowance for doubtful accounts of $11.8 and $11.1 | 378.7 | 369.9 |
Income tax receivable | 102.1 | 94.9 |
Inventories: | ||
Raw materials and supplies | 302.5 | 478.6 |
Work in process | 189.5 | 222.8 |
Finished goods | 173.8 | 241.7 |
Inventory, net | 665.8 | 943.1 |
Restricted cash, including partially-owned subsidiaries of $78.4 and $89.9 | 178.2 | 195.8 |
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,979.8 and $1,980.1 | 7,981 | 7,145.4 |
Less accumulated depreciation, including partially-owned subsidiaries of $364.9 and $313.7 | (2,014.2) | (1,797.4) |
Property, plant, and equipment, net | 5,966.8 | 5,348 |
Goodwill | 754.1 | 753.8 |
Other assets | 281.5 | 309.5 |
Total assets | 9,125.3 | 8,885.9 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 156.1 | 216.8 |
Accrued liabilities | 426.1 | 529.6 |
Debt: | ||
Recourse, net of unamortized discount of $27.1 and $44.2 | 850.6 | 836.7 |
Non-recourse debt | 2,206 | 2,358.7 |
Total debt | 3,056.6 | 3,195.4 |
Deferred income | 23.5 | 27.1 |
Deferred income taxes | 1,072.9 | 752.2 |
Other liabilities | 79 | 116.1 |
Total liabilities | 4,814.2 | 4,837.2 |
Stockholders’ equity: | ||
Preferred stock – 1.5 shares authorized and unissued | 0 | 0 |
Common stock – shares authorized at December 31, 2016 - 400.0; at December 31, 2015 - 400.0; shares issued and outstanding at December 31, 2016 – 152.2; at December 31, 2015 – 152.9 | 1.6 | 1.5 |
Capital in excess of par value | 534.6 | 548.5 |
Retained earnings | 3,497.3 | 3,220.3 |
Accumulated other comprehensive loss | (113.5) | (115.4) |
Treasury stock – shares at December 31, 2016 – 0.1; at December 31, 2015 – 0.1 | (1.5) | (1) |
Total stockholders' equity | 3,918.5 | 3,653.9 |
Noncontrolling interest | 392.6 | 394.8 |
Total stockholders' equity, including portion attributable to noncontrolling interest | 4,311.1 | 4,048.7 |
Total liabilities and stockholders' equity | 9,125.3 | 8,885.9 |
Wholly-owned subsidiaries | ||
Debt: | ||
Non-recourse debt | 840 | 928.7 |
Partially-owned subsidiaries | ||
Inventories: | ||
Restricted cash, including partially-owned subsidiaries of $78.4 and $89.9 | 78.4 | 89.9 |
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,979.8 and $1,980.1 | 1,979.8 | 1,980.1 |
Less accumulated depreciation, including partially-owned subsidiaries of $364.9 and $313.7 | (364.9) | (313.7) |
Debt: | ||
Non-recourse debt | $ 1,366 | $ 1,430 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables, allowance for doubtful accounts | $ 11.8 | $ 11.1 |
Restricted cash | 178.2 | 195.8 |
Property, plant and equipment, at cost | 7,981 | 7,145.4 |
Less: accumulated depreciation | 2,014.2 | 1,797.4 |
Unamortized discount on recourse debt | $ 27.1 | $ 44.2 |
Preferred stock, shares authorized | 1,500,000 | 1,500,000 |
Preferred stock, shares unissued | 1,500,000 | 1,500,000 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 152,200,000 | 152,900,000 |
Common stock, shares outstanding | 152,200,000 | 152,900,000 |
Treasury stock, shares | 100,000 | 100,000 |
Partially-owned subsidiaries | ||
Restricted cash | $ 78.4 | $ 89.9 |
Property, plant and equipment, at cost | 1,979.8 | 1,980.1 |
Less: accumulated depreciation | $ 364.9 | $ 313.7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | |||
Net income | $ 364.7 | $ 826 | $ 709.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 283 | 266.4 | 244.6 |
Stock-based compensation expense | 41.3 | 61.1 | 53.3 |
Excess tax benefits from stock-based compensation | (1) | (13.3) | (24.4) |
Provision (benefit) for deferred income taxes | 321.4 | 116.6 | (5.8) |
Net gains on railcar lease fleet sales owned more than one year at the time of sale | (13.5) | (166.1) | (92.3) |
Gains on disposition of property and other assets | (3.9) | (12.7) | (12.1) |
Non-cash interest expense | 28.5 | 30.1 | 30.7 |
Other | (3.4) | (2.5) | (4.5) |
Changes in assets and liabilities: | |||
(Increase) decrease in receivables | (16) | (0.8) | (56.4) |
(Increase) decrease in inventories | 273.3 | 128.5 | (186.3) |
(Increase) decrease in restricted cash | 0 | (9.4) | 25 |
(Increase) decrease in other assets | 18.6 | (40.9) | (8.3) |
Increase (decrease) in accounts payable | (60.7) | (78.6) | 60.7 |
Increase (decrease) in accrued liabilities | (104.9) | (169.6) | 82.1 |
Increase (decrease) in other liabilities | (37.2) | 4.9 | 2.6 |
Net cash provided by operating activities - continuing operations | 1,090.2 | 939.7 | 818.2 |
Net cash provided by operating activities - discontinued operations | 0 | 0 | 1 |
Net cash provided by operating activities | 1,090.2 | 939.7 | 819.2 |
Investing activities: | |||
(Increase) decrease in short-term marketable securities | (149.8) | (9.9) | 74.7 |
Proceeds from railcar lease fleet sales owned more than one year at the time of sale | 37.7 | 514.6 | 265.8 |
Proceeds from disposition of property and other assets | 16 | 8.2 | 23 |
Capital expenditures – leasing, net of sold lease fleet railcars owned one year or less with a net cost of $92.0, $295.9, and $350.2 | (799.1) | (833.8) | (245.3) |
Capital expenditures – manufacturing and other | (134.3) | (196) | (219.3) |
Acquisitions, net of cash acquired | 0 | (46.2) | (714.4) |
Divestitures | 0 | 51.3 | 0 |
Other | 6.8 | 0.5 | 0.8 |
Net cash required by investing activities - continuing operations | (1,022.7) | (511.3) | (814.7) |
Net cash required by investing activities - discontinued operations | 0 | 0 | 0 |
Net cash required by investing activities | (1,022.7) | (511.3) | (814.7) |
Financing activities: | |||
Proceeds from issuance of common stock, net | 0 | 0.3 | 0.6 |
Excess tax benefits from stock-based compensation | 1 | 13.3 | 24.4 |
Payments to retire debt | (162.5) | (587.2) | (186.6) |
Proceeds from issuance of debt | 0 | 242.4 | 727.3 |
(Increase) decrease in restricted cash | 17.6 | 48.3 | 1 |
Shares repurchased | (34.7) | (115) | (36.5) |
Dividends paid to common shareholders | (66.7) | (64.9) | (54.4) |
Purchase of shares to satisfy employee tax on vested stock | (16.3) | (27.5) | (38.3) |
Contributions from noncontrolling interest | 0 | 0 | 49.6 |
Distributions to noncontrolling interest | (26.4) | (39.2) | (28.2) |
Other | (2.1) | (0.8) | (2.5) |
Net cash provided (required) by financing activities - continuing | (290.1) | (530.3) | 456.4 |
Net cash required by financing activities - discontinued operations | 0 | 0 | (1.5) |
Net cash provided (required) by financing activities | (290.1) | (530.3) | 454.9 |
Net increase (decrease) in cash and cash equivalents | (222.6) | (101.9) | 459.4 |
Cash and cash equivalents at beginning of period | 786 | 887.9 | 428.5 |
Cash and cash equivalents at end of period | 563.4 | 786 | 887.9 |
Supplemental Cash Flow Information | |||
Interest paid | 151 | 164.3 | 158.3 |
Income tax payments made, net | $ (57.9) | $ 326.8 | $ 399 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Cash Flows [Abstract] | |||
Net cost of sold lease fleet railcars owned one year or less | $ 92 | $ 295.9 | $ 350.2 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 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 at Dec. 31, 2013 | $ 2,749.1 | $ 81.7 | $ 686.6 | $ 1,870 | $ (78.2) | $ (158) | $ 2,402.1 | $ 347 |
Beginning balance, shares at Dec. 31, 2013 | 81,700,000 | 4,300,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 709.3 | 678.2 | 678.2 | 31.1 | ||||
Other comprehensive income | (31) | (34) | (34) | 3 | ||||
Cash dividends on common stock | (58.3) | (58.3) | (58.3) | |||||
Restricted shares, net | 14.9 | $ 0.1 | 29.8 | $ (15) | 14.9 | |||
Restricted shares, net, shares | (100,000) | (600,000) | ||||||
Shares repurchased | (31.5) | $ (31.5) | (31.5) | |||||
Shares repurchased, shares | (600,000) | |||||||
Stock options exercised | 0.6 | $ 0.1 | (0.1) | $ 0.6 | 0.6 | |||
Stock options exercised, shares | 100,000 | 100,000 | ||||||
Excess tax benefits from stock-based compensation | 24.2 | 24.2 | 24.2 | |||||
Contributions from noncontrolling interest | 49.6 | 49.6 | ||||||
Distributions to noncontrolling interest | (28.2) | (28.2) | ||||||
Retirement of treasury stock | 0 | $ (4.2) | (198.9) | $ 203.1 | ||||
Retirement of treasury stock, shares | (4,200,000) | (4,200,000) | ||||||
Stock split, shares | 78,000,000 | |||||||
Stock split | 0 | $ (78) | 78 | |||||
Other | (1.3) | 0 | (0.4) | 0.3 | $ (0.2) | (0.3) | (1) | |
Other, shares | (100,000) | |||||||
Ending balance at Dec. 31, 2014 | 3,397.4 | $ 155.7 | 463.2 | 2,489.9 | (111.9) | $ (1) | 2,995.9 | 401.5 |
Ending balance, shares at Dec. 31, 2014 | 155,700,000 | 100,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 826 | 796.5 | 796.5 | 29.5 | ||||
Other comprehensive income | (0.5) | (3.5) | (3.5) | 3 | ||||
Cash dividends on common stock | (66.1) | (66.1) | (66.1) | |||||
Restricted shares, net | 33.6 | $ 0 | 64.4 | $ (30.8) | 33.6 | |||
Restricted shares, net, shares | (2,100,000) | (1,100,000) | ||||||
Shares repurchased | $ (115) | $ (115) | (115) | |||||
Shares repurchased, shares | (3,947,320) | (3,900,000) | ||||||
Stock options exercised | $ 0.4 | $ 0 | 0.4 | $ 0 | 0.4 | |||
Stock options exercised, shares | 100,000 | 0 | ||||||
Excess tax benefits from stock-based compensation | 12.1 | 12.1 | 12.1 | |||||
Distributions to noncontrolling interest | (39.2) | (39.2) | ||||||
Retirement of treasury stock | 0 | $ 0 | (145.8) | $ (145.8) | ||||
Retirement of treasury stock, shares | (5,000,000) | (5,000,000) | ||||||
Stock split, shares | 0 | |||||||
Change in par value of common stock | 0 | $ (154.2) | 154.2 | |||||
Ending balance at Dec. 31, 2015 | 4,048.7 | $ 1.5 | 548.5 | 3,220.3 | (115.4) | $ (1) | 3,653.9 | 394.8 |
Ending balance, shares at Dec. 31, 2015 | 152,900,000 | 100,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 364.7 | 343.6 | 343.6 | 21.1 | ||||
Other comprehensive income | 5 | 1.9 | 1.9 | 3.1 | ||||
Cash dividends on common stock | (66.6) | (66.6) | (66.6) | |||||
Restricted shares, net | 25 | $ 0.1 | 46.2 | $ (21.3) | 25 | |||
Restricted shares, net, shares | (2,600,000) | (1,200,000) | ||||||
Shares repurchased | $ (34.7) | $ (34.7) | (34.7) | |||||
Shares repurchased, shares | (2,070,600) | (2,100,000) | ||||||
Stock options exercised, shares | 0 | |||||||
Excess net tax deficiency from stock-based compensation | $ (4.5) | (4.5) | (4.5) | |||||
Distributions to noncontrolling interest | (26.4) | 0 | (26.4) | |||||
Retirement of treasury stock | 0 | $ 0 | 56 | $ (56) | 0 | |||
Retirement of treasury stock, shares | (3,300,000) | (3,300,000) | ||||||
Other | (0.1) | (0.4) | $ 0.5 | (0.1) | ||||
Ending balance at Dec. 31, 2016 | $ 4,311.1 | $ 1.6 | $ 534.6 | $ 3,497.3 | $ (113.5) | $ (1.5) | $ 3,918.5 | $ 392.6 |
Ending balance, shares at Dec. 31, 2016 | 152,200,000 | 100,000 |
Consolidated Statements of St10
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | Dec. 31, 2016 | May 31, 2015 | Apr. 30, 2015 |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 1 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The financial statements of Trinity Industries, Inc. and its consolidated subsidiaries (“Trinity,” “Company,” “we” or “our”) include 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. All significant intercompany accounts and transactions have been eliminated. Stockholders' Equity On May 5, 2014 , the Company's Board of Directors authorized a 2 -for-1 stock split on its common shares in the form of a 100% stock dividend. The additional shares were distributed on June 19, 2014 , to shareholders of record at the close of business on June 5, 2014 . The stock split is reflected in the consolidated statement of stockholders' equity by the reclassification of $78.0 million from "Capital in Excess of Par Value" to "Common Stock" representing the par value of the additional shares issued. In December 2015 , the Company’s Board of Directors renewed its $250 million share repurchase program effective January 1, 2016 through December 31, 2017 . The new program replaced the previous program which expired on December 31, 2015 . Under the new program, 2,070,600 shares were repurchased during the year ended December 31, 2016 , at a cost of $34.7 million . During the year ended December 31, 2015 , the Company repurchased 3,947,320 shares at a cost of $115.0 million . 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. Revenue from rentals and operating leases, including contracts that 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 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. Income Taxes The liability method is used to account for income taxes. Deferred income taxes represent the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances reduce deferred tax assets to an amount that will more likely than not be realized. The Company regularly evaluates the likelihood of realization of tax benefits derived from positions it has taken in various federal and state filings after consideration of all relevant facts, circumstances, and available information. For those tax positions that are deemed more likely than not to be sustained, the Company recognizes the benefit it believes is cumulatively greater than 50% likely to be realized. To the extent the Company were to prevail in matters for which accruals have been established or be required to pay amounts in excess of recorded reserves, the effective tax rate in a given financial statement period could be materially impacted. 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 (using level two inputs), receivables, and accounts payable are considered to be representative of their respective fair values. At December 31, 2016 , one Rail Group customer's net receivable balance, substantially all paid subsequent to December 31, 2016, accounted for 21% of the consolidated net receivables balance outstanding. Inventories Inventories are valued at the lower of cost or market, with cost determined principally on the first in first out method. Market is replacement cost or net realizable value. Work in process and finished goods include material, labor, and overhead. Property, Plant, and Equipment Property, plant, and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. The estimated useful lives are: buildings and improvements - 3 to 30 years ; leasehold improvements - the lesser of the term of the lease or 7 years ; machinery and equipment - 2 to 10 years ; information systems hardware and software - 2 to 5 years ; and railcars in our lease fleet - generally 35 years . The costs of ordinary maintenance and repair are charged to operating costs. Long-lived Assets The Company periodically evaluates the carrying value of long-lived assets to be held and used for potential impairment. The carrying value of long-lived assets to be held and used is considered impaired only when their carrying value is not recoverable through undiscounted future cash flows and the fair value of the assets is less than their carrying value. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risks involved or market quotes as available. Impairment losses on long-lived assets held for sale are determined in a similar manner, except that fair values are reduced by the estimated cost to dispose of the assets. Based on the Company's evaluations, no impairment charges were determined to be necessary as of December 31, 2016 and 2015 . Goodwill and Intangible Assets Goodwill is required to be tested for impairment annually, or on an interim basis whenever events or circumstances change, indicating that the carrying amount of the goodwill might be impaired. The quantitative goodwill impairment test is a two-step process with step one requiring the comparison of the reporting unit's estimated fair value with the carrying amount of its net assets. If necessary, step two of the impairment test determines the amount of goodwill impairment to be recorded when the reporting unit's recorded net assets exceed its fair value. Impairment is assessed at the “reporting unit” level by applying a fair value-based test for each unit with recorded goodwill. The estimates and judgments that most significantly affect the fair value calculations are assumptions, consisting of level three inputs, related to revenue and operating profit growth, discount rates and exit multiples. As of December 31, 2016 and 2015 , the Company's annual impairment test of goodwill was completed at the reporting unit level and no impairment charges were determined to be necessary. The net book value of intangible assets totaled $79.7 million and $86.9 million as of December 31, 2016 and 2015 , respectively, and included intangible assets with defined useful lives of $43.1 million and $50.3 million , respectively, which are amortized over their estimated useful lives ranging from 1 to 20 years . Intangible assets were evaluated for potential impairment as of December 31, 2016 and 2015 . Restricted Cash Restricted cash consists of cash and cash equivalents held either as collateral for the Company's non-recourse debt and lease obligations or as security for the performance of certain product sales agreements. As such, they are restricted in use. Insurance The Company is effectively self-insured for workers' compensation claims. A third party administrator is used to process claims. We accrue our workers' compensation liability based upon independent actuarial studies. Warranties The Company provides various express, limited product warranties that generally range from one to five years depending on the product. The warranty costs are estimated using a two-step approach. First, an engineering estimate is made for the cost of all claims that have been asserted by customers. Second, based on historical, accepted claims experience, a cost is accrued for all products still within a warranty period for which no claims have been filed. The Company provides for the estimated cost of product warranties at the time revenue is recognized related to products covered by warranties, and assesses the adequacy of the resulting reserves on a quarterly basis. Foreign Currency Translation Certain operations outside the United States prepare financial statements in currencies other than the United States dollar. The income statement amounts are translated at average exchange rates for the year, while the assets and liabilities are translated at year-end exchange rates. Translation adjustments are accumulated as a separate component of stockholders' equity and other comprehensive income. The functional currency of our Mexico operations is considered to be the United States dollar. The functional currency of our Canadian operations is considered to be the Canadian dollar. Other Comprehensive Income (Loss) Other comprehensive net income (loss) consists of foreign currency translation adjustments, the effective unrealized gains and losses on the Company's derivative financial instruments, and the net actuarial gains and losses of the Company's defined benefit plans, the sum of which, along with net income (loss), constitutes comprehensive net income (loss). See Note 15 Accumulated Other Comprehensive Loss (“AOCL”). All components are shown net of tax. 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. The Company plans to adopt ASU 2014-09 effective January 1, 2018 using the modified retrospective method of adoption. Under this method, the guidance will be applied only to the most current period presented in the financial statements and the cumulative effect of initially applying the standard will result in an adjustment to the opening balance of retained earnings as of the date of adoption. Using both internal and external resources, the Company continues to evaluate the requirements of the standard and their application to our various business units. While our technical analysis is on-going, we anticipate a change in the timing of revenue recognition for our wind towers and utility structures product lines within our Energy Equipment Group, no longer recognizing revenue when products are delivered, but under the new guidance, recognizing revenue over time as products are manufactured. The impact of this change cannot be reasonably estimated at this time. We expect revenue recognition policies related to our other business segments to remain substantially unchanged as a result of adopting ASU 2014-09, although this could change based on our on-going analysis. Additionally, we do not anticipate significant changes in business processes or systems. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, "Leases", ("ASU 2016-02") which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will become effective for public companies during interim and annual reporting periods beginning after December 15, 2018 with early adoption permitted. The Company plans to adopt ASU 2016-02 effective January 1, 2019. We are continuing to assess the potential effects of the new standard, including its effects on our consolidated financial statements and the accounting for revenue from full service leases. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting", ("ASU 2016-09") which changes how companies account for certain aspects of share-based payments to employees. Excess tax benefits or deficiencies related to vested awards, previously recognized in stockholders' equity, will be required to be recognized in the income statement when the awards vest. ASU 2016-09 became effective for public companies during interim and annual reporting periods beginning after December 15, 2016 with early adoption permitted. Accordingly, the Company adopted this new standard on January 1, 2017. The effect of adopting this standard will result in volatility in the provision for income taxes depending on fluctuations in the price of the Company's stock. In December 2016, the FASB issued Accounting Standards Update No. 2016-18, "Restricted Cash", ("ASU 2016-18") which clarifies how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. The new guidance requires a reconciliation of totals in the statement of cash flows to the related cash and cash equivalents and restricted cash captions in the balance sheet. ASU 2016-18 will become effective for public companies during interim and annual reporting periods beginning after December 15, 2017 with early adoption permitted. The Company plans to adopt ASU 2016-18 effective January 1, 2018. Management's Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures The Company's acquisition and divestiture activities are summarized below: Year Ended December 31, 2016 2015 2014 (in millions) Acquisitions: Purchase price $ — $ 46.2 $ 720.9 Net cash paid $ — $ 46.2 $ 714.4 Goodwill recorded $ — $ — $ 495.0 Divestitures: Proceeds $ — $ 51.3 $ — Gain recognized $ — $ 8.3 $ — Goodwill charged off $ — $ 17.3 $ — In March 2015 , we completed the acquisition of the assets of a lightweight construction aggregates business in our Construction Products Group with facilities located in Louisiana, Alabama, and Arkansas. In June 2015, we sold the assets of our galvanizing business which included six facilities in Texas, Mississippi, and Louisiana, recognizing a gain of $8.3 million which is included in other gains on 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. Acquisition of Meyer Steel Structures In August 2014, Trinity acquired the assets of Meyer Steel Structures ("Meyer"). Meyer is one of North America's leading providers of tubular steel structures for electricity transmission and distribution and is included in the Company's Energy Equipment Group. For the year ended December 31, 2014 , the Company incurred $8.7 million in acquisition-related transaction costs which have been expensed in our Corporate segment and $1.5 million in non-recurring additional state income tax expense included in our consolidated provision for income taxes. The following table represents our final purchase price allocation using level three inputs (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 Level three inputs are those that reflect our estimates about the assumptions market participants would use in determining the fair value of the asset or liability based on the best information available in the circumstances. Valuation techniques for assets and liabilities measured using level three inputs may include methodologies such as the market approach, the income approach or the cost approach and may use unobservable inputs such as projections, estimates, and management’s interpretation of current market data. These unobservable inputs are utilized only to the extent that observable inputs are not available or cost effective to obtain. Goodwill, all tax-deductible, was primarily related to the value of Meyer's market position and its existing workforce. Based on our final valuation, other assets include intangibles arising from the Meyer acquisition as follows (in millions): Weighted average useful life Customer relationships $ 35.3 10.5 years Trademarks/trade names 34.1 Indefinite Technology 5.6 5.0 years $ 75.0 In addition to Meyer, during the year ended December 31, 2014 , we completed the acquisition of three businesses in our Energy Equipment Group located in the U.S. and Canada and one business in our Construction Products Group located in the U.S. The operating results of our 2014 acquisitions, as summarized in the following table, are included in the consolidated statements of operations from their date of acquisition, exclude transaction-related acquisition costs that are included in the Corporate segment, and include additional amortization expense resulting from the preliminary purchase price allocation: Year Ended (in millions) Revenues 187.4 Operating profit 2.4 The following table represents the pro-forma consolidated operating results of the Company as if our 2014 acquisitions had been acquired on January 1, 2013. The pro-forma information should not be considered indicative of the results that would have occurred if the acquisitions had been completed on January 1, 2013, nor is such pro-forma information necessarily indicative of future results. Year Ended December 31, 2014 Year Ended December 31, 2013 (in millions) Revenues $ 6,369.8 $ 4,830.8 Operating profit $ 1,274.4 $ 834.1 The aggregate purchase price related to our acquisition activity for the years ended December 31, 2016, 2015, and 2014 by segment follows: Year ended December 31, 2016 2015 2014 (in millions) Construction Products Group $ — $ 46.2 $ 6.1 Energy Equipment Group — — 714.8 $ — $ 46.2 $ 720.9 |
Fair Value Accounting
Fair Value Accounting | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents $ 188.7 $ — $ — $ 188.7 Restricted cash 178.2 — — 178.2 Equity instruments (1) — 3.1 — 3.1 Fuel derivative instruments (1) — 0.3 — 0.3 Total assets $ 366.9 $ 3.4 $ — $ 370.3 Liabilities: Interest rate hedge: (2) Partially-owned subsidiaries $ — $ 0.9 $ — $ 0.9 Total liabilities $ — $ 0.9 $ — $ 0.9 Fair Value Measurement as of December 31, 2015 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents $ 174.0 $ — $ — $ 174.0 Restricted cash 195.8 — — 195.8 Total assets $ 369.8 $ — $ — $ 369.8 Liabilities: Interest rate hedges: (2) Partially-owned subsidiaries $ — $ 1.6 $ — $ 1.6 Fuel derivative instruments (2) — 0.8 — 0.8 Total liabilities $ — $ 2.4 $ — $ 2.4 (1) Included in other assets on the consolidated balance sheet. (2) 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. The equity instruments consist of warrants for the purchase of certain publicly-traded equity securities and are valued using the Black-Scholes-Merton pricing model and certain assumptions regarding the exercisability of the options under the related agreement. 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: December 31, 2016 December 31, 2015 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (in millions) Recourse: Senior notes $ 399.6 $ 386.3 $ 399.6 $ 370.3 Convertible subordinated notes 449.4 575.5 449.4 534.8 Less: unamortized discount (26.7 ) (43.8 ) 422.7 405.6 Capital lease obligations 32.1 32.1 35.8 35.8 Other — — 0.5 0.5 854.4 993.9 841.5 941.4 Less: unamortized debt issuance costs (3.8 ) (4.8 ) 850.6 836.7 Non-recourse: 2006 secured railcar equipment notes 194.2 201.5 204.1 218.2 2009 secured railcar equipment notes 172.5 189.9 179.2 207.2 2010 secured railcar equipment notes 280.6 284.3 296.2 314.2 TILC warehouse facility 204.1 204.1 264.3 264.3 TRL 2012 secured railcar equipment notes 425.5 395.6 449.1 436.9 TRIP Master Funding secured railcar equipment notes 955.5 960.6 997.8 1,039.5 2,232.4 2,236.0 2,390.7 2,480.3 Less: unamortized debt issuance costs (26.4 ) (32.0 ) 2,206.0 2,358.7 Total $ 3,056.6 $ 3,229.9 $ 3,195.4 $ 3,421.7 The estimated fair values of our senior notes and convertible subordinated notes were based on a quoted market price in a market with little activity as of December 31, 2016 and 2015 ( Level 2 input). The estimated fair values of our 2006 , 2009 , 2010 , and 2012 secured railcar equipment 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 December 31, 2016 and 2015 . 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 | 12 Months Ended |
Dec. 31, 2016 | |
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 construction 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, steel utility structures for electricity transmission and distribution, storage and distribution containers, and tank heads for pressure and non-pressure vessels; 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 ("deferred profit") from the Rail Group to the Leasing Group are recorded in the Rail Group and eliminated in consolidation and reflected in the "Eliminations - Lease subsidiary" line in the table below. Sales between these groups are recorded at prices comparable to those charged to external customers, taking into consideration quantity, features, and production demand. 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. Year Ended December 31, 2016 Revenues Operating Profit (Loss) Assets Depreciation & Amortization Capital Expenditures External Intersegment Total (in millions) Rail Group $ 2,006.9 $ 1,070.4 $ 3,077.3 $ 459.9 $ 1,014.1 $ 41.7 $ 29.2 Construction Products Group 510.6 12.6 523.2 72.6 470.3 23.8 49.9 Inland Barge Group 403.0 0.1 403.1 45.3 120.8 8.4 3.2 Energy Equipment Group 834.7 178.0 1,012.7 133.1 1,035.7 36.6 25.0 Railcar Leasing and Management Services Group 824.9 2.1 827.0 360.1 6,095.7 156.2 799.1 All Other 8.2 84.0 92.2 (18.9 ) 114.3 7.7 9.0 Segment Totals before Eliminations and Corporate 4,588.3 1,347.2 5,935.5 1,052.1 8,850.9 274.4 915.4 Corporate — — — (131.0 ) 1,079.3 8.7 18.0 Eliminations – Lease subsidiary — (1,021.9 ) (1,021.9 ) (178.2 ) (798.1 ) — — Eliminations – Other — (325.3 ) (325.3 ) (0.7 ) (6.8 ) (0.1 ) — Consolidated Total $ 4,588.3 $ — $ 4,588.3 $ 742.2 $ 9,125.3 $ 283.0 $ 933.4 Year Ended December 31, 2015 Revenues Operating Profit (Loss) Assets Depreciation & Amortization Capital Expenditures External Intersegment Total (in millions) Rail Group $ 3,236.2 $ 1,225.6 $ 4,461.8 $ 931.6 $ 1,245.3 $ 38.8 $ 84.0 Construction Products Group 520.6 12.0 532.6 54.5 445.1 24.1 28.1 Inland Barge Group 652.9 — 652.9 117.0 157.7 10.5 5.8 Energy Equipment Group 883.6 230.1 1,113.7 150.9 1,118.3 38.2 53.5 Railcar Leasing and Management Services Group 1,091.6 13.2 1,104.8 606.2 5,358.2 142.3 833.8 All Other 7.8 104.5 112.3 (8.2 ) 64.2 4.8 9.8 Segment Totals before Eliminations and Corporate 6,392.7 1,585.4 7,978.1 1,852.0 8,388.8 258.7 1,015.0 Corporate — — — (152.6 ) 1,175.6 7.8 14.8 Eliminations – Lease subsidiary — (1,164.4 ) (1,164.4 ) (259.6 ) (673.0 ) — — Eliminations – Other — (421.0 ) (421.0 ) (0.9 ) (5.5 ) (0.1 ) — Consolidated Total $ 6,392.7 $ — $ 6,392.7 $ 1,438.9 $ 8,885.9 $ 266.4 $ 1,029.8 Year Ended December 31, 2014 Revenues Operating Profit (Loss) Assets Depreciation & Amortization Capital Expenditures External Intersegment Total (in millions) Rail Group $ 3,077.6 $ 739.2 $ 3,816.8 $ 724.1 $ 1,322.4 $ 32.7 $ 98.3 Construction Products Group 546.1 5.6 551.7 65.4 459.3 22.7 37.1 Inland Barge Group 638.5 — 638.5 114.4 177.1 9.3 9.7 Energy Equipment Group 796.0 196.3 992.3 108.1 1,160.0 33.0 56.0 Railcar Leasing and Management Services Group 1,106.4 11.9 1,118.3 516.3 4,939.1 130.0 245.3 All Other 5.4 105.0 110.4 (25.6 ) 56.3 9.6 9.3 Segment Totals before Eliminations and Corporate 6,170.0 1,058.0 7,228.0 1,502.7 8,114.2 237.3 455.7 Corporate — — — (119.0 ) 1,141.6 7.4 8.9 Eliminations – Lease subsidiary — (710.1 ) (710.1 ) (133.1 ) (557.2 ) — — Eliminations – Other — (347.9 ) (347.9 ) 0.4 (3.3 ) (0.1 ) — Consolidated Total $ 6,170.0 $ — $ 6,170.0 $ 1,251.0 $ 8,695.3 $ 244.6 $ 464.6 Corporate assets are composed of cash and cash equivalents, short-term marketable securities, notes receivable, certain property, plant, and equipment, and other assets. Capital expenditures do not include business acquisitions. Revenues and operating profit for our Mexico operations for the years ended December 31, 2016 , 2015 , and 2014 are presented below. Our Canadian operations were not significant in relation to the consolidated financial statements. Year Ended December 31, 2016 2015 2014 (in millions) Mexico: Revenues: External $ 118.9 $ 106.0 $ 130.4 Intercompany 199.0 230.6 217.6 $ 317.9 $ 336.6 $ 348.0 Operating profit $ 59.0 $ 77.1 $ 16.8 Total assets and long-lived assets for our Mexico operations as of December 31, 2016 and 2015 are presented below: Total Assets Long-Lived Assets December 31, 2016 2015 2016 2015 (in millions) Mexico $ 319.0 $ 318.5 $ 195.5 $ 207.5 |
Partially-Owned Leasing Subsidi
Partially-Owned Leasing Subsidiaries | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016 , the Company's carrying value of its investment in TRIP Holdings and RIV 2013 totaled $222.4 million . The Company's weighted average ownership interest in TRIP Holdings and RIV 2013 is 39% while the remaining 61% weighted average interest is owned by third-party investor-owned funds. 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 by these subsidiaries 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 available, 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. TILC and the third-party equity investors have commitments to provide additional equity funding to TRIP Holdings that expire in May 2019 contingent upon certain returns on investment in TRIP Holdings and other conditions being met. There are no remaining equity commitments with respect to RIV 2013. 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 | 12 Months Ended |
Dec. 31, 2016 | |
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: December 31, 2016 Leasing Group Wholly- Owned Subsidiaries Partially- Owned Subsidiaries Manufacturing/ Corporate Total (in millions) Cash, cash equivalents, and short-term marketable securities $ 7.2 $ — $ 790.9 $ 798.1 Property, plant, and equipment, net $ 3,923.6 $ 1,879.6 $ 961.7 $ 6,764.9 Net deferred profit on railcars sold to the Leasing Group (798.1 ) Consolidated property, plant, and equipment, net $ 5,966.8 Restricted cash $ 99.7 $ 78.4 $ 0.1 $ 178.2 Debt: Recourse $ 32.1 $ — $ 849.4 $ 881.5 Less: unamortized discount — — (27.1 ) (27.1 ) Less: unamortized debt issuance costs (0.1 ) — (3.7 ) (3.8 ) 32.0 — 818.6 850.6 Non-recourse 851.4 1,381.0 — 2,232.4 Less: unamortized debt issuance costs (11.4 ) (15.0 ) — (26.4 ) 840.0 1,366.0 — 2,206.0 Total debt $ 872.0 $ 1,366.0 $ 818.6 $ 3,056.6 Net deferred tax liabilities $ 956.6 $ 2.0 $ 98.4 $ 1,057.0 December 31, 2015 Leasing Group Wholly- Owned Subsidiaries Partially- Owned Subsidiaries Manufacturing/ Corporate Total (in millions) Cash, cash equivalents, and short-term marketable securities $ 3.8 $ — $ 867.1 $ 870.9 Property, plant, and equipment, net $ 3,126.3 $ 1,938.6 $ 956.1 $ 6,021.0 Net deferred profit on railcars sold to the Leasing Group (673.0 ) Consolidated property, plant, and equipment, net $ 5,348.0 Restricted cash $ 105.9 $ 89.9 $ — $ 195.8 Debt: Recourse $ 35.8 $ — $ 849.9 $ 885.7 Less: unamortized discount — — (44.2 ) (44.2 ) Less: unamortized debt issuance costs (0.1 ) — (4.7 ) (4.8 ) 35.7 — 801.0 836.7 Non-recourse 943.8 1,446.9 — 2,390.7 Less: unamortized debt issuance costs (15.1 ) (16.9 ) — (32.0 ) 928.7 1,430.0 — 2,358.7 Total debt $ 964.4 $ 1,430.0 $ 801.0 $ 3,195.4 Net deferred tax liabilities $ 746.0 $ 1.4 $ (12.6 ) $ 734.8 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. Year Ended December 31, Percent Change 2016 2015 2014 2016 versus 2015 2015 versus 2014 ($ in millions) Revenues: Leasing and management $ 700.9 $ 699.9 $ 632.0 0.1 % 10.7 % Sale of railcars owned one year or less at the time of sale 126.1 404.9 486.3 Total revenues $ 827.0 $ 1,104.8 $ 1,118.3 (25.1 ) (1.2 ) Operating profit: Leasing and management $ 312.5 $ 331.1 $ 287.9 (5.6 ) 15.0 Railcar sales: Railcars owned one year or less at the time of sale 34.1 109.0 136.1 Railcars owned more than one year at the time of sale 13.5 166.1 92.3 Total operating profit $ 360.1 $ 606.2 $ 516.3 (40.6 ) 17.4 Operating profit margin: Leasing and management 44.6 % 47.3 % 45.6 % Railcar sales * * * Total operating profit margin 43.5 % 54.9 % 46.2 % Selected expense information (1) : Depreciation $ 156.2 $ 142.3 $ 130.0 9.8 9.5 Maintenance and compliance $ 104.3 $ 97.3 $ 78.9 7.2 23.3 Rent $ 39.3 $ 41.6 $ 52.9 (5.5 ) (21.4 ) Interest $ 125.2 $ 138.8 $ 153.3 (9.8 ) (9.5 ) * Not meaningful (1) Depreciation, maintenance and compliance, 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 year ended December 31, 2016 , 2015 , and 2014 the Company received proceeds from the sale of leased railcars as follows: Year Ended December 31, 2016 2015 2014 (in millions) Leasing Group: Railcars owned one year or less at the time of sale $ 126.1 $ 404.9 $ 486.3 Railcars owned more than one year at the time of sale 37.7 514.6 265.8 Rail Group 8.1 260.5 243.2 $ 171.9 $ 1,180.0 $ 995.3 Equipment consists primarily of railcars leased to 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: 2017 2018 2019 2020 2021 Thereafter Total (in millions) Future contractual minimum rental revenues $ 521.5 $ 436.9 $ 356.1 $ 277.5 $ 177.2 $ 336.4 $ 2,105.6 Debt. The Leasing Group’s debt at December 31, 2016 consisted primarily of non-recourse debt. In 2009 , the Company entered into capital lease obligations totaling $56.6 million . The capital lease obligations are guaranteed by Trinity Industries, Inc. and certain subsidiaries, and secured by railcar equipment and related leases. As of December 31, 2016 , Trinity’s wholly-owned subsidiaries included in the Leasing Group held equipment with a net book value of $1,393.0 million which is pledged as collateral for Leasing Group debt held by those subsidiaries, including equipment with a net book value of $42.2 million securing capital lease obligations. The net book value of unpledged equipment at December 31, 2016 was $2,466.1 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 non-recourse to Trinity and TILC. Creditors of each of TRIP Holdings and RIV 2013 and their respective subsidiaries have recourse only to the particular subsidiary's assets. TRIP Master Funding equipment with a net book value of $1,311.0 million is pledged as collateral for the TRIP Master Funding debt. TRL 2012 equipment with a net book value of $568.6 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 each of the respective Trusts is considered to be the primary beneficiary of the Trust and therefore, the accounts of the Trusts, including the debt related to each of the Trusts, are 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 . Under the terms of the operating lease agreements between the subsidiaries and the remaining Trusts, the Leasing Group has the option to purchase, at a predetermined fixed price, certain railcars from the remaining Trusts in 2019 . The Leasing Group also has options to purchase the railcars at the end of the respective lease agreements in 2026 and 2027 at the then fair market value of the railcars as determined by a third party, independent appraisal. At the expiration of the operating lease agreements, the Company has no further obligations with respect to the leased railcars. These Leasing Group subsidiaries had total assets as of December 31, 2016 of $145.5 million , including cash of $53.5 million and railcars of $64.1 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: 2017 2018 2019 2020 2021 Thereafter Total (in millions) Future operating lease obligations of Trusts’ railcars $ 29.2 $ 29.2 $ 28.8 $ 26.1 $ 26.1 $ 118.0 $ 257.4 Future contractual minimum rental revenues of Trusts’ railcars $ 44.8 $ 34.1 $ 24.0 $ 14.7 $ 9.6 $ 14.5 $ 141.7 In each transaction, the Leasing Group has entered into a servicing and re-marketing agreement with the Trusts that requires the Leasing Group to endeavor, consistent with customary commercial practice as would be used by a prudent person, to maintain railcars under lease for the benefit of the Trusts. The Leasing Group also receives management fees under the terms of the agreements. In each transaction, an independent trustee for the Trusts has authority for appointment of the railcar fleet manager. 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: 2017 2018 2019 2020 2021 Thereafter Total (in millions) Future operating lease obligations $ 12.1 $ 12.0 $ 9.5 $ 7.7 $ 7.6 $ 13.4 $ 62.3 Future contractual minimum rental revenues $ 15.3 $ 8.3 $ 6.2 $ 4.3 $ 3.4 $ 4.2 $ 41.7 Operating lease obligations totaling $9.3 million are guaranteed by Trinity Industries, Inc. and certain subsidiaries. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments We may 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 may use derivative instruments to mitigate the impact of changes in natural gas and diesel fuel prices and changes in foreign currency exchange rates. For derivative instruments designated as hedges, the Company formally documents the relationship between the derivative instrument and the hedged item, as well as the risk management objective and strategy for the use of the derivative instrument. This documentation includes linking the derivatives that are designated as fair value or cash flow hedges to specific assets or liabilities on the balance sheet, commitments, or forecasted transactions. At the time a derivative instrument is entered into, and at least quarterly thereafter, the Company assesses whether the derivative instrument is effective in offsetting the changes in fair value or cash flows of the hedged item. Any change in fair value resulting in ineffectiveness, as defined by accounting standards issued by the FASB, is recognized in current period earnings. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is recorded in AOCL as a separate component of stockholders' equity and reclassified into earnings in the period during which the hedged transaction affects earnings. Trinity monitors its derivative positions and the credit ratings of its counterparties and does not anticipate losses due to counterparties' non-performance. See Note 3 Fair Value Accounting for discussion of how the Company valued its commodity hedges and interest rate swaps at December 31, 2016 . 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 % $ — $ (0.7 ) $ — TRIP Holdings warehouse loan $ 788.5 3.60 % $ — $ 5.9 $ 8.0 Open hedge: TRIP Master Funding secured railcar equipment notes $ 38.7 2.62 % $ 0.9 $ 0.4 $ 0.5 (1) Weighted average fixed interest rate Effect on interest expense-increase/(decrease) Year Ended December 31, Expected effect during next twelve months (1) 2016 2015 2014 (in millions) Expired hedges: 2006 secured railcar equipment notes $ (0.4 ) $ (0.3 ) $ (0.3 ) $ (0.2 ) Promissory notes $ — $ 1.2 $ 2.9 $ — TRIP Holdings warehouse loan $ 4.8 $ 4.9 $ 5.1 $ 4.5 Open hedges: TRIP Master Funding secured railcar equipment notes $ 0.9 $ 1.3 $ 1.5 $ 0.6 Promissory notes $ — $ 5.3 $ 15.4 $ — (1) Based on the fair value of open hedges as of December 31, 2016 During 2005 and 2006 , we entered into interest rate swap derivatives in anticipation of issuing our 2006 Secured Railcar Equipment Notes. These derivative instruments, with a notional amount of $200.0 million , were settled in 2006 and fixed the interest rate on a portion of the related debt issuance. These derivative instrument transactions are being accounted for as cash flow hedges with changes in the fair value of the instruments of $4.5 million in income recorded in AOCL through the date the related debt issuance closed in 2006 . The balance is being amortized over the term of the related debt. The effect on interest expense is due to amortization of the AOCL balance. During 2006 and 2007 , we entered into interest rate swap derivatives in anticipation of issuing our Promissory Notes. These derivative instruments, with a notional amount of $370.0 million , were settled in 2008 and fixed the interest rate on a portion of the related debt issuance. These derivative instrument transactions 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 from 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 $4.5 million of additional interest expense expected to be recognized during the twelve months following December 31, 2016 . Also in July 2011 , TRIP Holdings’ wholly-owned subsidiary, TRIP Master Funding, entered into an interest rate swap derivative instrument, expiring in 2021 , with an initial notional amount of $94.1 million to reduce the effect of changes in variable interest rates associated with the Class A-1b notes of the TRIP Master Funding secured railcar equipment notes. The effect on interest expense is primarily a result of monthly interest settlements. See Note 11 Debt regarding the related debt instruments. Other Derivatives Natural gas and diesel fuel We maintain a program to mitigate the impact of fluctuations in the price of natural gas and diesel fuel. 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 amount recorded in the consolidated balance sheet as of December 31, 2016 for these instruments was an asset of $0.3 million . The effect of these hedges was to decrease cost of revenues for the year ended December 31, 2016 by $0.4 million , and to increase cost of revenues for the years ended December 31, 2015 and 2014 by $1.1 million and $2.3 million , respectively. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016 and 2015 . December 31, December 31, (in millions) Manufacturing/Corporate: Land $ 103.3 $ 86.5 Buildings and improvements 642.6 610.4 Machinery and other 1,151.1 1,095.9 Construction in progress 39.1 68.7 1,936.1 1,861.5 Less accumulated depreciation (974.4 ) (905.4 ) 961.7 956.1 Leasing: Wholly-owned subsidiaries: Machinery and other 10.7 10.7 Equipment on lease 4,673.0 3,763.5 4,683.7 3,774.2 Less accumulated depreciation (760.1 ) (647.9 ) 3,923.6 3,126.3 Partially-owned subsidiaries: Equipment on lease 2,309.4 2,307.7 Less accumulated depreciation (429.8 ) (369.1 ) 1,879.6 1,938.6 Deferred profit on railcars sold to the Leasing Group (948.2 ) (798.0 ) Less accumulated amortization 150.1 125.0 (798.1 ) (673.0 ) $ 5,966.8 $ 5,348.0 We lease certain equipment and facilities under operating leases. Future minimum rent expense on non-Leasing Group leases in each year is (in millions): 2017 - $10.0 ; 2018 - $6.8 ; 2019 - $4.1 ; 2020 - $1.6 ; 2021 - $0.8 ; and $3.7 thereafter. See Note 6 Railcar Leasing and Management Services Group for information related to the lease agreements, future operating lease obligations, and future minimum rent expense associated with the Leasing Group. We did not capitalize any interest expense as part of the construction of facilities and equipment during 2016 or 2015 . We estimate the fair market value of properties no longer in use based on the location and condition of the properties, the fair market value of similar properties in the area, and the Company's experience selling similar properties in the past. As of December 31, 2016 , the Company had non-operating plants with a net book value of $65.1 million . Our estimated fair value of these assets exceeds their book value. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill by segment is as follows: December 31, December 31, (in millions) Rail Group $ 134.6 $ 134.6 Construction Products Group 111.0 111.0 Energy Equipment Group 506.7 506.4 Railcar Leasing and Management Services Group 1.8 1.8 $ 754.1 $ 753.8 As of December 31, 2016 and 2015 , the Company's annual impairment test of goodwill was completed at the reporting unit level and no impairment charges were determined to be necessary. As of December 31, 2016 and 2015 , Rail Group goodwill is net of a 2009 impairment charge of $325.0 million . Changes in goodwill during the year ended December 31, 2016 resulted from fluctuations in foreign currency exchange rates. |
Warranties
Warranties | 12 Months Ended |
Dec. 31, 2016 | |
Product Warranties Disclosures [Abstract] | |
Warranties | Warranties The changes in the accruals for warranties for the years ended December 31, 2016, 2015, and 2014 are as follows: December 31, 2016 December 31, 2015 December 31, 2014 (in millions) Beginning balance $ 21.5 $ 17.8 $ 14.7 Warranty costs incurred (9.4 ) (7.1 ) (6.1 ) Warranty originations and revisions 8.0 17.2 12.6 Warranty expirations (4.4 ) (6.4 ) (3.4 ) Ending balance $ 15.7 $ 21.5 $ 17.8 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the components of debt as of December 31, 2016 and 2015 : December 31, 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 $26.7 and $43.8 422.7 405.6 Other — 0.5 822.3 805.7 Less: unamortized debt issuance costs (3.7 ) (4.7 ) 818.6 801.0 Leasing – Recourse: Capital lease obligations, net of unamortized debt issuance costs of $0.1 and $0.1 32.0 35.7 Total recourse debt 850.6 836.7 Leasing – Non-recourse: Wholly-owned subsidiaries: 2006 secured railcar equipment notes 194.2 204.1 2009 secured railcar equipment notes 172.5 179.2 2010 secured railcar equipment notes 280.6 296.2 TILC warehouse facility 204.1 264.3 851.4 943.8 Less: unamortized debt issuance costs (11.4 ) (15.1 ) 840.0 928.7 Partially-owned subsidiaries: TRL 2012 secured railcar equipment notes 425.5 449.1 TRIP Master Funding secured railcar equipment notes 955.5 997.8 1,381.0 1,446.9 Less: unamortized debt issuance costs (15.0 ) (16.9 ) 1,366.0 1,430.0 Total non–recourse debt 2,206.0 2,358.7 Total debt $ 3,056.6 $ 3,195.4 Corporate We have a $600.0 million unsecured corporate revolving credit facility that matures in May 2020 . As of December 31, 2016 , we had letters of credit issued under our revolving credit facility in an aggregate principal amount of $92.3 million , leaving $507.7 million available for borrowing. Other than these letters of credit, there were no borrowings under our revolving credit facility as of December 31, 2016 , or for the twelve month period then ended. Of the outstanding letters of credit as of December 31, 2016 , a total of $92.2 million is expected to expire in 2017 and the remainder in 2018 . The majority of our letters of credit obligations support the Company’s various insurance programs and generally renew by their terms 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 December 31, 2016 , 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 Convertible Subordinated Notes due 2036 (“Convertible Subordinated Notes”) bear an interest rate of 3 7/8% per annum on the principal amount payable semi-annually in arrears on June 1 and December 1 of each year. In addition, commencing with the six -month period beginning June 1, 2018 and for each six -month period thereafter, we will pay contingent interest to the holders of the Convertible Subordinated Notes under certain circumstances. The Convertible Subordinated Notes mature on June 1, 2036 , unless redeemed, repurchased, or converted earlier. We may not redeem the Convertible Subordinated Notes before June 1, 2018 . On or after that date, we may redeem all or part of the Convertible Subordinated Notes for cash at 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest (including any contingent interest) up to, but excluding, the redemption date . Holders of the Convertible Subordinated Notes may require us to purchase all or a portion of their notes on June 1, 2018 or upon a fundamental change, in each case for cash at a price equal to 100% of the principal amount of the notes to be purchased plus any accrued and unpaid interest (including any contingent interest) up to, but excluding, the purchase date. The 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 December 31, 2016 and 2015 , 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 years ended December 31, 2016 , 2015 , and 2014 , is as follows: Year Ended December 31, 2016 2015 2014 (in millions) Coupon rate interest $ 17.4 $ 17.4 $ 17.4 Amortized debt discount 17.1 15.7 14.5 $ 34.5 $ 33.1 $ 31.9 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 $24.57 per share as of December 31, 2016 . The Convertible Subordinated Notes were not subject to conversion as of January 1, 2017. 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 September 2014, the Company issued $400.0 million aggregate principal amount of 4.55% senior notes ("Senior Notes") due October 2024 . Interest on the Senior Notes is payable semiannually commencing April 1, 2015. The Senior Notes rank senior to existing and future subordinated debt, including the Company's Convertible Subordinated Notes and rank equal to existing and future senior indebtedness, including the Company's revolving credit facility. The Senior Notes are subordinated to all the Company's existing and future secured debt to the extent of the value of the collateral securing such indebtedness. The Senior Notes contain covenants that limit our ability and/or certain subsidiaries' ability to create or permit to exist certain liens; enter into sale and leaseback transactions; and consolidate, merge, or transfer all or substantially all of our assets. The Company’s Senior Notes are fully and unconditionally and jointly and severally guaranteed by each of Trinity’s domestic subsidiaries that is a guarantor under the Company's revolving credit facility. See Note 19 Financial Statements for Guarantors of the Senior Notes. Wholly-owned leasing subsidiaries In May 2006 , Trinity Rail Leasing V, L.P., a limited partnership (“TRL V”) and a limited purpose, indirect wholly-owned subsidiary of the Company owned through TILC issued $355.0 million in aggregate principal amount of Secured Railcar Equipment Notes, Series 2006 -1A (the “ 2006 Secured Railcar Equipment Notes”), of which $194.2 million was outstanding as of December 31, 2016 . The 2006 Secured Railcar Equipment Notes were issued pursuant to a Master Indenture, dated May 24, 2006 , between TRL V and Wilmington Trust Company, as indenture trustee. The 2006 Secured Railcar Equipment Notes bear interest at a fixed rate of 5.90% per annum, are payable monthly, and have a final maturity of May 14, 2036 . The 2006 Secured Railcar Equipment Notes are obligations of TRL V and are non-recourse to Trinity. The obligations are secured by a portfolio of railcars and operating leases thereon, certain cash reserves, and other assets acquired and owned by TRL V. In November 2009 , Trinity Rail Leasing VII LLC, a Delaware limited liability company (“TRL VII”) and a limited purpose, indirect wholly-owned subsidiary of the Company owned through TILC, issued $238.3 million in aggregate principal amount of Secured Railcar Equipment Notes, Series 2009 -1 (“the 2009 Secured Railcar Equipment Notes”), of which $172.5 million was outstanding as of December 31, 2016 . The 2009 Secured Railcar Equipment Notes were issued pursuant to a Master Indenture, dated November 5, 2009 between TRL VII and Wilmington Trust Company, as indenture trustee. The 2009 Secured Railcar Equipment Notes bear interest at a fixed rate of 6.66% per annum, are payable monthly, and have a final maturity date of November 16, 2039 . The 2009 Secured Railcar Equipment Notes are obligations of TRL VII and are non-recourse to Trinity. The obligations are secured by a portfolio of railcars and operating leases thereon, certain cash reserves, and other assets acquired and owned by TRL VII. In October 2010 , Trinity Rail Leasing 2010 LLC, a Delaware limited liability company ("TRL 2010 ") and a limited purpose, indirect wholly-owned subsidiary of the Company owned through TILC, issued $369.2 million in aggregate principal amount of Secured Railcar Equipment Notes, Series 2010 -1 (“ 2010 Secured Railcar Equipment Notes"), of which $280.6 million was outstanding as of December 31, 2016 . The 2010 Secured Railcar Equipment Notes were issued pursuant to an Indenture, dated as of October 25, 2010 between TRL 2010 and Wilmington Trust Company, as indenture trustee. The 2010 Secured Railcar Equipment Notes bear interest at a fixed rate of 5.19% , are payable monthly, and have a stated final maturity date of October 16, 2040 . The 2010 Secured Railcar Equipment Notes are obligations of TRL 2010 and are non-recourse to Trinity. The obligations are secured by a portfolio of railcars and operating leases thereon, certain cash reserves, and other assets acquired and owned by TRL 2010 . The $1.0 billion TILC warehouse loan facility, established to finance railcars owned by TILC, had $204.1 million in outstanding borrowings as of December 31, 2016 . Under the facility, $795.9 million was unused and available as of December 31, 2016 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 2.64% at December 31, 2016 . The warehouse loan facility has been renewed and extended through April 2018 . Interest rate pricing remained unchanged under the renewed facility. Amounts outstanding at maturity, absent renewal, are payable under the renewed facility in April 2019 . In 2009 , the Company entered into capital lease obligations totaling $56.6 million , of which $32.1 million was outstanding as of December 31, 2016 . The capital lease obligations are guaranteed by the Company and certain subsidiaries and secured by railcar equipment and related leases. Partially-owned leasing subsidiaries In July 2011 , TRIP Holdings issued $175.0 million in Senior Secured Notes (the “TRIP Holdings Senior Secured Notes”) and TRIP Master Funding, a Delaware limited liability company and limited purpose, wholly-owned subsidiary of TRIP Holdings, issued $857.0 million in Secured Railcar Equipment Notes (the “TRIP Master Funding Secured Railcar Equipment Notes”). The proceeds from the TRIP Holdings Senior Secured Notes and the TRIP Master Funding Secured Railcar Equipment Notes were primarily used by TRIP Master Funding to purchase all of the railcar equipment owned by TRIP Leasing. The TRIP Holdings Senior Secured Notes were repaid in full in May 2013 . The TRIP Master Funding Secured Railcar Equipment Notes consist of three classes with the Class A-1a notes bearing interest at 4.37% , the Class A-1b notes bearing interest at Libor plus 2.50% , and the Class A-2 notes bearing interest at 6.02% , all payable monthly, with a final maturity date in July 2041 . As of December 31, 2016 , there were $88.1 million , $49.8 million , and $509.6 million of Class A-1a, Class A-1b, and of Class A-2 notes outstanding, respectively. In May 2014 , TRIP Master Funding issued $335.7 million in aggregate principal amount of Series 2014-1 Secured Railcar Equipment Notes consisting of two classes with the Class A-1 notes bearing interest at 2.86% and the Class A-2 notes bearing interest at 4.09% , with a final maturity date of April 2044 . As of December 31, 2016 , there were $87.3 million and $220.7 million of Class A-1 and Class A-2 notes outstanding, respectively. The TRIP Master Funding Secured Railcar Equipment Notes and the TRIP Master Funding Series 2014-1 Secured Railcar Equipment Notes are issued pursuant to a Master Indenture dated July 6, 2011 between TRIP Master Funding and Wilmington Trust Company, as indenture trustee; are non-recourse to Trinity, TILC, TRIP Holdings, and the other equity investors in TRIP Holdings; and are secured by TRIP Master Funding's portfolio of railcars and operating leases thereon, its cash reserves, and all other assets owned by TRIP Master Funding. In December 2012 , Trinity Rail Leasing 2012 LLC, a Delaware limited liability company ("TRL 2012 ") and a limited purpose, indirect wholly-owned subsidiary of the Company owned through TILC, issued $145.4 million in aggregate principal amount of Series 2012 -1 Class A-1 Secured Railcar Equipment Notes (the " 2012 Class A-1 Notes") and $188.4 million in aggregate principal amount of Series 2012 -1 Class A-2 Secured Railcar Equipment Notes (the " 2012 Class A-2 Notes") and collectively with the 2012 Class A-1 Notes, the "2012 Secured Railcar Equipment Notes," of which $79.2 million and $188.4 million , respectively, were outstanding as of December 31, 2016 . The 2012 Class A-1 Notes bear interest at a fixed rate of 2.27% , are payable monthly, and have a stated final maturity date of January 15, 2043 . The 2012 Class A-2 Notes bear interest at a fixed rate of 3.53% , are payable monthly, and have a stated final maturity date of January 15, 2043 . In May 2013, TRL 2012 became a subsidiary of one of the Company's partially-owned subsidiaries, RIV 2013. See Note 5 Partially-Owned Leasing Subsidiaries for further explanation. In August 2013 , TRL 2012 issued $183.4 million in aggregate principal amount of Series 2013 -1 Secured Railcar Equipment Notes of which $157.9 million was outstanding as of December 31, 2016 . The 2013 -1 Secured Railcar Equipment Notes bear interest at a fixed rate of 3.9% , are payable monthly, and have a stated final maturity date of July 15, 2043 . The 2012 Secured Railcar Equipment Notes and the 2013-1 Secured Railcar Equipment Notes were issued pursuant to a Master Indenture dated December 19, 2012 between TRL 2012 and Wilmington Trust Company, as indenture trustee; are non-recourse to Trinity, TILC, RIV 2013, and the other equity investors in RIV 2013; and are secured by TRL 2012's portfolio of railcars and operating leases thereon, its cash reserves, and all other assets owned by TRL 2012 . TRIP Master Funding and TRL 2012 are wholly-owned subsidiaries of TRIP Holdings and RIV 2013, respectively, which, in turn, are partially-owned subsidiaries of the Company, through its wholly-owned subsidiary, TILC. The Company's combined weighted average ownership interest in TRIP Holdings and RIV 2013 is 39% . See Note 5 Partially-Owned Leasing Subsidiaries for further explanation. The remaining principal payments under existing debt agreements as of December 31, 2016 are as follows: 2017 2018 2019 2020 2021 Thereafter (in millions) Recourse: Corporate $ — $ — $ — $ — $ — $ 849.4 Leasing – capital lease obligations (Note 6) 3.6 28.5 — — — — Non-recourse – leasing (Note 6): 2006 secured railcar equipment notes 35.9 25.3 28.0 29.8 29.2 46.0 2009 secured railcar equipment notes 6.3 6.4 11.2 6.6 13.4 128.6 2010 secured railcar equipment notes 13.6 10.0 7.6 14.2 20.1 215.1 TILC warehouse facility 8.2 8.2 2.1 — — — Facility termination payments - TILC warehouse facility — — 185.6 — — — TRL 2012 secured railcar equipment notes 22.7 22.9 21.9 19.3 19.9 318.8 TRIP Master Funding secured railcar equipment notes 28.8 41.5 49.5 48.8 49.8 737.1 Total principal payments $ 119.1 $ 142.8 $ 305.9 $ 118.7 $ 132.4 $ 2,295.0 |
Other, Net
Other, Net | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other, Net | Other, Net Other, net (income) expense consists of the following items: Year Ended December 31, 2016 2015 2014 (in millions) Foreign currency exchange transactions $ 2.4 $ (2.1 ) $ (1.2 ) (Gain) loss on equity investments (0.1 ) 0.1 (0.8 ) Other (3.4 ) (3.6 ) (2.6 ) Other, net $ (1.1 ) $ (5.6 ) $ (4.6 ) Other for the year ended December 31, 2016 includes $2.3 million in income related to the change in fair value of certain equity instruments. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the provision for income taxes are as follows: Year Ended December 31, 2016 2015 2014 (in millions) Current: Federal $ (130.3 ) $ 271.2 $ 322.7 State 3.3 19.6 19.4 Foreign 7.7 18.6 18.5 Total current (119.3 ) 309.4 360.6 Deferred: Federal 313.0 117.4 (4.0 ) State 8.1 (0.3 ) 1.2 Foreign 0.3 (0.5 ) (3.0 ) Total deferred 321.4 116.6 (5.8 ) Provision $ 202.1 $ 426.0 $ 354.8 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: Year Ended December 31, 2016 2015 2014 Statutory rate 35.0 % 35.0 % 35.0 % State taxes 1.4 1.2 1.4 Domestic production activities deduction — (1.4 ) (2.0 ) Noncontrolling interest in partially-owned subsidiaries (1.3 ) (0.8 ) (1.1 ) Changes in valuation allowances and reserves 0.3 — 0.1 Other, net 0.3 — (0.1 ) Effective rate 35.7 % 34.0 % 33.3 % Income (loss) before income taxes for the years ended December 31, 2016 , 2015 , and 2014 was $573.1 million , $1,241.1 million , and $1,051.4 million , respectively, for U.S. operations, and $(6.3) million , $10.9 million , and $12.6 million , respectively, for foreign operations, principally Mexico. The Company provides deferred income taxes on the unrepatriated earnings of its foreign operations where it results in a deferred tax liability. Our effective tax rate reflects the current tax benefit available for U.S. manufacturing activity, when applicable. Deferred income taxes represent the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of deferred tax liabilities and assets are as follows: December 31, 2016 2015 (in millions) Deferred tax liabilities: Depreciation, depletion, and amortization $ 919.6 $ 711.6 Partially-owned subsidiaries basis difference 171.5 144.0 Convertible debt 137.4 125.2 Total deferred tax liabilities 1,228.5 980.8 Deferred tax assets: Workers compensation, pensions, and other benefits 46.7 73.7 Warranties and reserves 12.1 11.4 Equity items 52.6 52.4 Tax loss carryforwards and credits 24.9 25.7 Inventory 29.2 34.1 Accrued liabilities and other 6.5 8.3 Total deferred tax assets 172.0 205.6 Net deferred tax liabilities before valuation allowances 1,056.5 775.2 Valuation allowances 11.7 10.1 Net deferred tax liabilities before reserve for uncertain tax positions 1,068.2 785.3 Deferred tax assets included in reserve for uncertain tax positions (11.2 ) (50.5 ) Adjusted net deferred tax liabilities $ 1,057.0 $ 734.8 At December 31, 2016 , the Company had $21.0 million of federal consolidated net operating loss carryforwards and $6.5 million of tax-effected state loss carryforwards remaining. The federal net operating loss carryforwards were acquired as part of an acquisition of a company in 2010 and are subject to limitations on the amount that can be utilized in any one tax year. The federal net operating loss carryforwards are due to expire in 2028 and 2029 . We have established a valuation allowance for federal, state, and foreign tax operating losses and credits that we have estimated may not be realizable. Taxing authority examinations During the fourth quarter of 2016, the Internal Revenue Service ("IRS") formally closed its audit of the 2010-2011 tax years and sent the results of its 2006-2009 tax year examinations to the Joint Committee on Taxation ("JCT") for review as required. We now consider the 2010-2011 tax years effectively settled and, as of December 31, 2016, have adjusted the related reserves and deferred tax assets affected by the settlement with no significant effect on the Company’s consolidated financial statements. We expect the 2006-2009 tax year examinations to be effectively settled in 2017. The 2013-2015 tax years are currently under IRS audit examination. The statute of limitations expired on the 2012 tax year for the federal tax return. 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 mutual agreement process or July 2018 . The remaining entities are generally open for their 2010 tax years and forward. Unrecognized tax benefits The change in unrecognized tax benefits for the years ended December 31, 2016 , 2015 , and 2014 was as follows: Year Ended December 31, 2016 2015 2014 (in millions) Beginning balance $ 65.2 $ 62.3 $ 55.0 Additions for tax positions related to the current year — 5.5 5.0 Additions for tax positions of prior years 1.0 — 2.5 Reductions for tax positions of prior years (26.6 ) (0.7 ) (0.1 ) Settlements (7.1 ) (1.9 ) — Expiration of statute of limitations (4.3 ) — (0.1 ) Ending balance $ 28.2 $ 65.2 $ 62.3 Additions for tax positions related to the current year in the amount of $5.5 million for the year ended December 31, 2015 were amounts provided for tax positions that were taken for federal and state income tax purposes when we filed the tax return. Additions for tax positions related to the current year in the amount of $5.0 million for the year ended December 31, 2014 , were amounts provided for tax positions taken for federal, state, and Mexico income tax purposes. Additions for tax positions related to prior years of $1.0 million for the year ended December 31, 2016 are due to a state filing position. Additions for tax positions of prior years in the amount of $2.5 million recorded in the year ended December 31, 2014 are related to federal, state, and foreign tax positions. Reductions for tax positions of prior years of $26.6 million for the year ended December 31, 2016 related primarily to remeasured federal tax positions based upon new information for which we are now highly certain that we would ultimately prevail. The corresponding deferred tax assets related to these positions have also been removed. The reduction in tax positions of prior years of $0.7 million for the year ended December 31, 2015 was related to changes to transfer pricing and state taxes and $0.1 million for the year ended December 31, 2014 was primarily related to changes in state taxes. Settlements for the year ended December 31, 2016 represent federal tax positions for the 2010-2011 tax years that settled during the fourth quarter of 2016. Expiration of statutes of limitations relate to the 2012 federal tax return as well as some state statutes. Settlements during the twelve months ended December 31, 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 December 31, 2016 and 2015 , that would affect the Company’s effective tax rate if recognized was $13.1 million and $13.9 million , respectively. There is a reasonable possibility that unrecognized federal and state tax benefits will decrease by $24.4 million by December 31, 2017 due to settlements and lapses in statutes of limitations for assessing tax years in which an extension was not requested by the taxing authority. 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 December 31, 2016 and 2015 was $8.9 million and $12.4 million , respectively. Income tax expense for the year ended December 31, 2016 included decreases of $3.5 million with regard to interest expense and penalties related to uncertain tax positions. Income tax expense for the years ended December 31, 2015 and 2014 included increases of $0.8 million , and $0.8 million , respectively, with regard to interest expense and penalties related to uncertain tax positions. |
Employee Retirement Plans
Employee Retirement Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Retirement Plans | Employee Retirement Plans The Company sponsors defined benefit plans and defined contribution profit sharing plans that provide retirement income and death benefits for eligible employees. The annual measurement date of the benefit obligations, fair value of plan assets, and funded status is December 31. Actuarial assumptions Year Ended December 31, 2016 2015 2014 Assumptions used to determine benefit obligations at the annual measurement date were: Obligation discount rate 4.34% 4.79% 4.33% Compensation increase rate 4.00% 4.00% 4.00% Assumptions used to determine net periodic benefit costs were: Obligation discount rate 4.79% 4.33% 5.22% Long-term rate of return on plan assets 6.50% 7.00% 7.75% Compensation increase rate 4.00% 4.00% 4.00% The obligation discount rate assumption is determined by deriving a single discount rate from a theoretical settlement portfolio of high quality corporate bonds sufficient to provide for the plans' projected benefit payments. The expected long-term rate of return on the plans' assets is an assumption reflecting the anticipated weighted average rate of earnings on the portfolio over the long-term. To arrive at this rate, estimates were developed based upon the anticipated performance of the plans' assets. The compensation increase rate pertains solely to the pension plan of the Company's Inland Barge segment, which was closed to new participants in 2014. The accrued benefits of the Company's remaining pension plans were frozen in 2009. Components of net retirement cost Year Ended December 31, 2016 2015 2014 (in millions) Expense Components Service cost $ 0.4 $ 0.5 $ 0.5 Interest 20.8 20.0 20.2 Expected return on plan assets (27.2 ) (30.5 ) (31.0 ) Amortization of actuarial loss 5.1 5.0 2.1 Defined benefit expense (0.9 ) (5.0 ) (8.2 ) Profit sharing 15.2 18.7 17.4 Multiemployer plan 2.3 2.4 0.8 Net expense $ 16.6 $ 16.1 $ 10.0 The expected return on plan assets is based on the plan assets' fair value. Amortization of actuarial loss is determined using the corridor method. Under the corridor method, unamortized actuarial gains or losses in excess of 10% of the greater of the projected benefit obligation or the fair value of plan assets as of the beginning of the plan year are amortized, for frozen plans, over the average expected remaining lifetime of frozen and inactive participants. Substantially all of the Company's defined benefit plans were frozen as of December 31, 2016 . Obligations and funded status Year Ended December 31, 2016 2015 (in millions) Accumulated Benefit Obligations $ 459.6 $ 445.3 Projected Benefit Obligations: Beginning of year $ 445.3 $ 473.9 Service cost 0.4 0.5 Interest 20.8 20.0 Benefits paid (18.1 ) (17.3 ) Actuarial (gain)/loss 11.2 (31.8 ) End of year $ 459.6 $ 445.3 Plans' Assets: Beginning of year $ 422.8 $ 434.5 Actual return on assets 33.1 (10.6 ) Employer contributions 4.7 16.2 Benefits paid (18.1 ) (17.3 ) End of year $ 442.5 $ 422.8 Consolidated Balance Sheet Components: Other assets $ 5.1 $ 3.5 Accrued liabilities (22.2 ) (26.0 ) Net funded status $ (17.1 ) $ (22.5 ) Percent of projected benefit obligations funded 96.3 % 94.9 % None of the plans' assets are expected to be returned to us during the year ending December 31, 2017 . Amounts recognized in other comprehensive income (loss) Year Ended December 31, 2016 2015 2014 (in millions) Actuarial loss $ (5.3 ) $ (9.4 ) $ (71.9 ) Amortization of actuarial loss 5.1 5.0 2.1 Curtailment — — 0.1 Total before income taxes (0.2 ) (4.4 ) (69.7 ) Income tax expense (benefit) (0.1 ) (1.6 ) (25.9 ) Net amount recognized in other comprehensive loss $ (0.1 ) $ (2.8 ) $ (43.8 ) At December 31, 2016 AOCL included unrecognized actuarial losses of $142.8 million ( $89.7 million net of related income taxes). Actuarial losses included in AOCL and expected to be recognized in net periodic pension cost for the year ended December 31, 2017 are $5.0 million ( $3.1 million net of related income taxes). Plan assets The Company's pension plan investment strategies have been developed as part of a comprehensive asset/liability management process that considers the relationship between both the assets and liabilities of the plans for the purpose of providing the capital assets necessary to meet the financial obligations made to participants of the Company's pension plans. These strategies consider not only the expected risk and returns on the plans' assets, but also the actuarial projections of liabilities, projected contributions, and funded status. The Company's investment policy statement allocates its pension plan assets into two portfolios as follows: • Liability hedging portfolio - The objective of the liability hedging portfolio is to match the characteristics of the pension plans' liabilities. This portfolio consists primarily of investment grade long duration bonds. • Growth portfolio - The objective of the growth portfolio is to focus upon total return with an acceptable level of risk. This portfolio is heavily weighted toward U.S. equities with a lesser exposure to international equities, domestic real estate investment trusts, U.S. high yield and emerging market sovereign debt. The target allocation between these two portfolios varies on a sliding scale based on the pension plans' percentage of projected benefit obligations funded ("Funding Percentage"), beginning with a 50% / 50% target allocation at a Funding Percentage of less than 100% and increasing to a 100% liability hedging portfolio target allocation at a Funding Percentage exceeding 110% . The range of target asset allocations has been determined after giving consideration to the expected returns of each asset category within the two portfolios, the expected performance of each asset category, the volatility of asset returns over time, and the complementary nature of the asset mix within the portfolio. The principal pension investment strategies include asset allocation and active asset management within approved guidelines. These assets are managed by an investment advisor. The target and actual allocations of the plans' assets at December 31, 2016 are as follows: Target December 31, Cash and cash equivalents 1 % Liability hedging portfolio 50% 46 % Growth portfolio 50% 53 % Total 100 % The estimated fair value of the plans' assets at December 31, 2016 and 2015 , indicating input levels used to determine fair value are as follows: Fair Value Measurement as of December 31, 2016 (in millions) Level 1 Level 2 Level 3 Total Temporary cash investments $ 5.9 $ — $ — $ 5.9 Debt common trust funds — 277.2 — 277.2 Equity common trust funds — 159.4 — 159.4 $ 5.9 $ 436.6 $ — $ 442.5 Fair Value Measurement as of December 31, 2015 (in millions) Level 1 Level 2 Level 3 Total Temporary cash investments $ 1.8 $ — $ — $ 1.8 Debt common trust funds — 273.9 — 273.9 Equity common trust funds — 147.1 — 147.1 $ 1.8 $ 421.0 $ — $ 422.8 The pension plans' assets are valued at fair value. The following is a description of the valuation methodologies used in determining fair value, including the general classification of such instruments pursuant to the valuation hierarchy as described further in Note 3 Fair Value Accounting: Temporary cash investments - These investments consist of U.S. dollars held in master trust accounts with the trustee. These temporary cash investments are classified as Level 1 instruments. Common trust funds - Common trust funds are comprised of shares or units in commingled funds that are not publicly traded. The underlying assets in these funds are publicly traded on exchanges and price quotes for the assets held by these funds are readily available. Holdings of common trust funds are classified as Level 2 investments. Multiemployer plan As a result of the acquisition of Meyer, the Company contributes to a multiemployer defined benefit pension plan under the terms of a collective-bargaining agreement that covers certain union-represented employees at one of Meyer's facilities. The risks of participating in a multiemployer plan are different from a single-employer plan in the following aspects: • Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to a multiemployer plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If the Company chooses to stop participating in the multiemployer plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Our participation in the multiemployer plan for the year ended December 31, 2016 is outlined in the table below. The Pension Protection Act ("PPA") zone status at December 31, 2016 and 2015 is as of the plan years ended December 31, 2015 and 2014, respectively, and is obtained from the multiemployer plan's regulatory filings available in the public domain and certified by the plan's actuary. Among other factors, plans in the yellow zone are less than 80% funded while plans in the red zone are less than 65% funded. Federal law requires that plans classified in the yellow or red zones adopt a funding improvement plan in order to improve the financial health of the plan. The plan utilized an amortization extension and the funding relief provided under the Internal Revenue Code and under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act in determining the zone status. The Company's contributions to the multiemployer plan were less than 5% of total contributions to the plan. The last column in the table lists the expiration date of the collective bargaining agreement to which the plan is subject. PPA Zone Status Contributions for Year Ended December 31, Pension Fund Employer Identification Number 2016 2015 Financial improvement plan status 2016 2015 2014 Surcharge imposed Expiration date of collective bargaining agreement (in millions) Boilermaker-Blacksmith National Pension Trust 48-6168020 Yellow Yellow Implemented $ 2.3 $ 2.5 $ 0.6 No July 3, 2019 Cash flows Employer contributions for the year ending December 31, 2017 are expected to be $2.5 million for the defined benefit plans compared to $4.7 million contributed during 2016 . Employer contributions to the 401(k) plans and the Supplemental Profit Sharing Plan for the year ending December 31, 2017 are expected to be $15.2 million compared to $18.5 million contributed during 2016 . Employer contributions for the year ending December 31, 2017 are expected to be $2.3 million for the multiemployer plan compared to $2.3 million contributed during 2016 . Benefit payments for the Company's defined benefit plans expected to be paid during the next ten years are as follows: Year Ending December 31, (in millions) 2017 $ 20.4 2018 21.5 2019 23.4 2020 24.4 2021 25.3 2022-2026 138.6 Participants in the pension plans are eligible to receive future retirement benefits through a company-funded annual retirement contribution provided through the Profit Sharing Plan for Employees of Trinity Industries, Inc. and Certain Affiliates. The contribution ranges from one to three percent of eligible compensation based on service. Both the annual retirement contribution and the company matching contribution are discretionary, requiring board approval, and are made annually with the investment of the funds directed by the participants. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss for the twelve months ended December 31, 2016 , 2015 , and 2014 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, 2013 $ (16.5 ) $ (18.7 ) $ (43.0 ) $ (78.2 ) Other comprehensive loss, net of tax, before reclassifications (2.0 ) (1.2 ) (45.1 ) (48.3 ) Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $8.4, $0.8, and $9.2 — 16.0 1.3 17.3 Less: noncontrolling interest — (3.0 ) — (3.0 ) Other comprehensive income (loss) (2.0 ) 11.8 (43.8 ) (34.0 ) Transfer of interests in partially-owned leasing subsidiaries — 0.3 — 0.3 Balances at December 31, 2014 (18.5 ) (6.6 ) (86.8 ) (111.9 ) Other comprehensive loss, net of tax, before reclassifications (6.0 ) (0.7 ) (6.0 ) (12.7 ) Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $3.4, $1.8, and $5.2 — 9.0 3.2 12.2 Less: noncontrolling interest — (3.0 ) — (3.0 ) Other comprehensive income (loss) (6.0 ) 5.3 (2.8 ) (3.5 ) Balances at December 31, 2015 (24.5 ) (1.3 ) (89.6 ) (115.4 ) Other comprehensive income (loss), net of tax, before reclassifications 0.8 (0.3 ) (3.3 ) (2.8 ) Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $0.7, $1.9, and $2.6 — 4.6 3.2 7.8 Less: noncontrolling interest — (3.1 ) — (3.1 ) Other comprehensive income (loss) 0.8 1.2 (0.1 ) 1.9 Balances at December 31, 2016 $ (23.7 ) $ (0.1 ) $ (89.7 ) $ (113.5 ) 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 $4.1 million , $4.2 million , and $1.7 million of the before-tax reclassification of net actuarial gains/(losses) of defined benefit plans are included in cost of revenues with the remainder included in selling, engineering, and administrative expenses in the consolidated statements of operations for the years ended December 31, 2016 , 2015 , and 2014 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company's 2004 Third Amended and Restated Stock Option and Incentive Plan (the "Plan”) provides for awarding 17,450,000 (adjusted for stock splits) shares of common stock plus (i) shares covered by forfeited, expired, and canceled options granted under prior plans; and (ii) shares tendered as full or partial payment for the purchase price of an award or to satisfy tax withholding obligations. At December 31, 2016 , a total of 2,123,136 shares were available for issuance. The Plan provides for the granting of nonqualified and incentive stock options having maximum ten -year terms to purchase common stock at its market value on the award date; stock appreciation rights based on common stock fair market values with settlement in common stock or cash; restricted stock awards; restricted stock units; and performance awards with settlement in common stock or cash on achievement of specific business objectives. Options become exercisable in various percentages over periods ranging up to five years. The cost of employee services received in exchange for awards of equity instruments is referred to as share-based payments and is based on the grant date fair-value of those awards. Stock-based compensation includes compensation expense, recognized over the applicable vesting periods, for share-based awards. The Company uses the Black-Scholes-Merton option pricing model to determine the fair value of stock options granted to employees. Stock-based compensation totaled $41.3 million , $61.1 million , and $53.3 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The income tax benefit related to stock-based compensation expense was $18.0 million , $28.5 million , and $40.1 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The Company has presented excess tax benefits related to stock-based compensation awards as a financing activity in the consolidated statements of cash flows. Stock options Expense related to stock options issued to eligible employees under the Plan is recognized over their vesting period on a straight- line basis. Stock options generally vest over five years and have contractual terms of ten years. All options outstanding at December 31, 2016 and December 31, 2015 were exercisable. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Terms (Years) Aggregate Intrinsic Value (in millions) Options outstanding at December 31, 2015 60,793 $ 8.12 2.9 $1.0 Granted — — Exercised — — Cancelled — — Options outstanding at December 31, 2016 60,793 $ 8.12 1.9 $1.2 At December 31, 2016 , there was no unrecognized compensation expense related to stock options. The intrinsic value of options exercised totaled zero , $0.7 million , and $1.8 million during the years ended December 31, 2016 , 2015 , and 2014 , respectively. Restricted stock Restricted share awards consist of restricted stock, restricted stock units, and performance units. Restricted stock and restricted stock units generally vest for periods ranging from one to fifteen years from the date of grant. Certain restricted stock and restricted stock units vest in their entirety upon the employee's retirement from the Company, the employee's reaching the age of 65 , or when the employee's age plus years of vested service equal 80 . Restricted stock units issued to non-employee directors under the Plan vest on the grant date or on the first business day immediately preceding the next Annual Meeting of Stockholders and are released upon completion of the directors' service to the Company. Expense related to restricted stock and restricted stock units issued to eligible employees under the Plan is recognized ratably over the vesting period or to the date on which retirement eligibility is achieved, if shorter. Performance units are granted to employees based upon a target level; however, depending upon the achievement of certain specified goals during the performance period, performance units may be adjusted to a level ranging between 0% and 200% of the target level. The performance units vest upon certification by the Human Resources Committee of the Board of Directors of the achievement of the specified performance goals. Expense related to performance units is recognized ratably from their award date to the end of the performance period, generally three years. Number of Restricted Share Awards Weighted Average Grant-Date Fair Value per Award Restricted share awards outstanding at December 31, 2015 6,798,175 $ 23.76 Granted 2,969,439 19.06 Vested (2,746,507 ) 21.93 Forfeited (272,024 ) 25.90 Restricted share awards outstanding at December 31, 2016 6,749,083 $ 22.35 At December 31, 2016 , unrecognized compensation expense related to restricted share awards totaled $63.1 million which will be recognized over a weighted average period of 4.8 years. The total vesting-date fair value of shares vested and released during the years ended December 31, 2016 , 2015 , and 2014 was $47.0 million , $76.9 million , and $105.2 million , respectively. The weighted average grant-date fair value of restricted share awards granted during the years ended December 31, 2016 , 2015 , and 2014 was $19.06 , $24.31 , and $32.35 per share, respectively. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
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 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. See Note 11 Debt for further explanation of the Company's Convertible Subordinated Notes. Total weighted average restricted shares and antidilutive stock options were 6.6 million shares, 6.8 million shares, and 7.4 million shares, for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The computation of basic and diluted net income attributable to Trinity Industries, Inc. follows. Year Ended (in millions, except per share amounts) Income (Loss) Average Shares EPS Net income attributable to Trinity Industries, Inc. $ 343.6 Unvested restricted share participation (9.4 ) Net income attributable to Trinity Industries, Inc. – basic 334.2 148.4 $ 2.25 Effect of dilutive securities: Stock options — — Convertible subordinated notes — 0.2 Net income attributable to Trinity Industries, Inc. – diluted $ 334.2 148.6 $ 2.25 Year Ended (in millions, except per share amounts) Income (Loss) Average Shares EPS Net income attributable to Trinity Industries, Inc. $ 796.5 Unvested restricted share participation (24.1 ) Net income attributable to Trinity Industries, Inc. – basic 772.4 150.2 $ 5.14 Effect of dilutive securities: Stock options — — Convertible subordinated notes 0.3 2.0 Net income attributable to Trinity Industries, Inc. – diluted $ 772.7 152.2 $ 5.08 Year Ended (in millions, except per share amounts) Income (Loss) Average Shares EPS Net income attributable to Trinity Industries, Inc. $ 678.2 Unvested restricted share participation (22.1 ) Net income attributable to Trinity Industries, Inc. – basic 656.1 151.0 $ 4.35 Effect of dilutive securities: Stock options — 0.1 Convertible subordinated notes 0.7 5.6 Net income attributable to Trinity Industries, Inc. – diluted $ 656.8 156.7 $ 4.19 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and 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 system (“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" and awarding $175.0 million in damages. Following unsuccessful settlement negotiations to resolve this dispute and the District Court's denial of the Company’s post-verdict motion for judgment as a matter of law, on June 9, 2015 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 attorneys' 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 and the annual premium is currently $3.7 million . 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”). On March 21, 2016, the Company filed its opening appellate brief. On March 28, 2016, six separate amicus curiae briefs were filed in the Fifth Circuit by the following organizations and individuals in support of Trinity’s appeal seeking a reversal of the judgment: (i) Eleven states - Texas, Alabama, Arkansas, Colorado, Indiana, Louisiana, Nevada, Oklahoma, South Carolina, Utah and Wisconsin; (ii) the National Association of Manufacturers, United States Chamber of Commerce, and the American Tort Reform Association; (iii) five former United States Department of Justice Officials; (iv) Mothers Against Drunk Driving; (v) the Cato Institute; and (vi) the Washington Legal Foundation. On June 9, 2016, Mr. Joshua Harman filed his responsive appeal brief in the Fifth Circuit. On June 16, 2016, six amicus curiae briefs were filed in the Fifth Circuit by several organizations and individuals in support of Mr. Harman's opposition to the Company's appeal. On July 21, 2016, the Company filed its reply brief in this matter and on December 7, 2016, the Fifth Circuit heard the parties' oral arguments. The Fifth Circuit's ruling on the Company's appeal is pending. 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. In 2005, 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”). Following the 2005 crash testing, 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 2005 acceptance of the product for use on the national highway system and 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 set out in Report 350. Due to the FHWA’s request for additional ET Plus crash tests, on October 24, 2014 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. Performance evaluation results from eight successful crash tests 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 and other guardrail end terminals 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 accident 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 is vigorously pursuing a reversal of the $682.4 million judgment before the Fifth Circuit. Appellate review will continue to result in legal expenses that are expensed as incurred. We remain confident in the performance of the product at issue in this matter, and we maintain that the allegations in the case are baseless and without merit. We believe our filing in the Fifth Circuit articulates in a clear and convincing way why the judgment should not stand. Based on information currently available to the Company, including, but not limited to 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. There were no revenues from the sales of ET Plus systems in the United States for the first three quarters of 2015 as a result of the Company’s action to suspend shipments of the product during that time. The Company resumed shipment of ET Plus systems in the fourth quarter of 2015. Revenues from sales of the ET Plus, included in the Construction Products Group, totaled approximately $4.1 million for the year ended December 31, 2016 . State, county, and municipal actions Trinity is aware of 29 states and the District of Columbia that have removed the ET Plus from their respective qualified products list. Mr. Harman has also filed nine separate state qui tam actions pursuant to: the Virginia Fraud Against Taxpayers Act ( Commonwealth of Virginia ex rel. Joshua M. Harman v. Trinity Industries, Inc. and Trinity Highway Products, LLC , Case No. CL13-698, in the Circuit Court, Richmond, Virginia); 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); 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); the Minnesota False Claims Act ( State of Minnesota ex rel. Joshua M. Harman Qui Tam v. Trinity Industries, Inc., and Trinity Highway Products, LLC , Case No. 62-CV-14-3457, in the Second Judicial District Court, Ramsey County, Minnesota); the Montana False Claims Act ( State of Montana ex rel. Joshua M. Harman v. Trinity Industries, Inc., and Trinity Highway Products, LLC , Case No. DV 14-0692, in the Montana Thirteenth Judicial District Court for Yellowstone County); and the Georgia Taxpayer Protection False Claims Act ( State of Georgia ex rel. Joshua M. Harman v. Trinity Industries, Inc., and Trinity Highway Products, LLC , Case No. 1:15-CV-1260, in the U.S. District Court for the Northern District of Georgia). In each of these nine cases Mr. Harman is alleging the Company violated the respective states' false claims act pertaining to sales of the ET Plus, and he is seeking damages, civil penalties, attorneys’ fees, costs and interest. Also, the respective states’ Attorneys General filed Notices of Election to Decline Intervention in all of these matters, with the exception of the Commonwealth of Virginia Attorney General who intervened in the Virginia matter. At this time all of the above-referenced state qui tam cases are 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 26, 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 and to expand the proposed class. The case is being brought by plaintiffs for and on behalf of themselves and the other 101 counties of the State of Illinois and on behalf of cities, villages, incorporated towns, and township governments 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 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, attorneys' fees and costs, and injunctive relief. The Company has also been served in a lawsuit filed February 11, 2015, titled The Corporation of the City of Stratford and Trinity Industries, Inc., Trinity Highway Products, LLC, and Trinity Industries Canada, Inc. , Case No. 15-2622 CP , pending in Ontario Superior Court of Justice. The 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 million in compensatory damages and $100 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 November 5, 2015, titled Jackson County, Missouri, individually and on behalf of a class of others similarly situated vs. Trinity Industries, Inc. and Trinity Highway Products, LLC , Case No. 1516-CV23684 (Circuit Court of Jackson County, Missouri). The case is being brought by plaintiff for and on behalf of itself and all Missouri counties with a population of 10,000 or more persons, including the City of St. Louis, and the State of Missouri’s transportation authority. The plaintiff alleges that the Company and Trinity Highway Products did not disclose design changes to the ET Plus and these allegedly undisclosed design changes made the ET Plus allegedly defective, unsafe, and unreasonably dangerous. The plaintiff alleges product liability negligence, product liability strict liability, and negligently supplying dangerous instrumentality for supplier’s business purposes. The plaintiff seeks compensatory damages, interest, attorneys' fees and costs, and in the alternative plaintiff seeks a declaratory judgment that the ET Plus is defective, the Company’s conduct was unlawful, and class-wide costs and expenses associated with removing and replacing the ET Plus throughout Missouri. The Company believes each of these county and municipal 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. 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 as well as other products manufactured by Trinity Highway Products. These cases are diverse in light of the randomness of collisions in general and the fact that each accident involving a roadside device such as an end terminal, 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 and tested 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 a Trinity Highway Products manufactured product 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 On January 11, 2016, the previously reported cases styled 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) (“Nemky”) and 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) ("Isolde"), were consolidated in the District Court for the Northern District of Texas, with all future filings to be filed in the Isolde case. On March 9, 2016, the Court appointed the Department of the Treasury of the State of New Jersey and its Division of Investment and the Plumbers and Pipefitters National Pension Fund and United Association Local Union Officers & Employees’ Pension Fund as co-lead plaintiffs ("Lead Plaintiffs). On May 11, 2016, the Lead Plaintiffs filed their Consolidated Complaint alleging defendants Trinity Industries, Inc., Timothy R. Wallace, James E. Perry, and Gregory B. Mitchell violated Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 promulgated thereunder, and defendants Mr. Wallace and Mr. Perry violated 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 August 18, 2016, Trinity, Mr. Wallace, Mr. Perry, and Mr. Mitchell filed motions to dismiss Lead Plaintiffs Consolidated Complaint, which remain pending. Trinity, Mr. Wallace, Mr. Perry, and Mr. Mitchell deny and intend to vigorously defend against the allegations in the Isolde case. Based on the information available to the Company, we currently do not believe that a loss is probable with respect to this shareholder class action; 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 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. Other matters The Company is involved in claims and lawsuits incidental to our business arising from various matters including product warranty, personal injury, environmental issues, workplace laws, and various governmental regulations. The Company evaluates its exposure to such claims and suits periodically and establishes accruals for these contingencies when a range of loss can be reasonably estimated. The range of reasonably possible losses for such matters, taking into consideration our rights in indemnity and recourse to third parties is $3.2 million to $20.2 million . This range includes any amount related to the Highway Products litigation matters described above in the section titled “Product liability cases.” At December 31, 2016 , total accruals of $10.3 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 $3.7 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. Other commitments Non-cancelable purchase obligations amounted to $584.8 million as of December 31, 2016 , of which $471.1 million is for the purchase of raw materials and components, principally by the Rail, Inland Barge, and Energy Equipment Groups. |
Financial Statements for Guaran
Financial Statements for Guarantors of the Senior Notes | 12 Months Ended |
Dec. 31, 2016 | |
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. 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 December 31, 2016 , assets held by the Combined Non-Guarantor Subsidiaries included $ 147.1 million of restricted cash that was not available for distribution to Trinity Industries, Inc. (“Parent”), $ 3,300.9 million of equipment securing certain non-recourse debt, $ 68.0 million of equipment securing certain lease obligations held by the Combined Non-Guarantor Subsidiaries, and $ 349.4 million of assets located in foreign locations. As of December 31, 2015 , assets held by the Combined Non-Guarantor Subsidiaries included $ 160.5 million of restricted cash that was not available for distribution to the Parent, $ 3,437.1 million of equipment securing certain non-recourse debt, $ 71.2 million of equipment securing certain lease obligations held by the Combined Non-Guarantor Subsidiaries, and $ 359.0 million of assets located in foreign locations. Statement of Operations and Comprehensive Income Year Ended December 31, 2016 Parent Combined Combined Eliminations Consolidated (in millions) Revenues $ — $ 2,880.8 $ 2,475.3 $ (767.8 ) $ 4,588.3 Cost of revenues (1.3 ) 2,331.5 1,921.7 (795.8 ) 3,456.1 Selling, engineering, and administrative expenses 125.3 121.8 160.3 — 407.4 Gains on dispositions on property (0.5 ) 11.1 6.8 — 17.4 124.5 2,442.2 2,075.2 (795.8 ) 3,846.1 Operating profit (loss) (124.5 ) 438.6 400.1 28.0 742.2 Other (income) expense (128.8 ) 67.4 236.8 — 175.4 Equity in earnings of subsidiaries, net of taxes 387.5 91.8 — (479.3 ) — Income before income taxes 391.8 463.0 163.3 (451.3 ) 566.8 Provision (benefit) for income taxes 48.2 154.3 56.8 (57.2 ) 202.1 Net income 343.6 308.7 106.5 (394.1 ) 364.7 Net income attributable to noncontrolling interest — — — 21.1 21.1 Net income attributable to controlling interest $ 343.6 $ 308.7 $ 106.5 $ (415.2 ) $ 343.6 Net income $ 343.6 $ 308.7 $ 106.5 $ (394.1 ) $ 364.7 Other comprehensive income (loss) 0.6 (0.4 ) 4.8 — 5.0 Comprehensive income 344.2 308.3 111.3 (394.1 ) 369.7 Comprehensive income attributable to noncontrolling interest — — — 24.2 24.2 Comprehensive income attributable to controlling interest $ 344.2 $ 308.3 $ 111.3 $ (418.3 ) $ 345.5 Statement of Operations and Comprehensive Income Year Ended December 31, 2015 Parent Combined Combined Eliminations Consolidated (in millions) Revenues $ — $ 4,668.8 $ 2,642.6 $ (918.7 ) $ 6,392.7 Cost of revenues (2.0 ) 3,594.9 2,005.3 (942.0 ) 4,656.2 Selling, engineering, and administrative expenses 147.0 153.3 176.1 — 476.4 Gains on dispositions on property 2.0 86.0 90.8 — 178.8 143.0 3,662.2 2,090.6 (942.0 ) 4,953.8 Operating profit (loss) (143.0 ) 1,006.6 552.0 23.3 1,438.9 Other (income) expense (118.7 ) 68.6 237.0 — 186.9 Equity in earnings of subsidiaries, net of taxes 920.0 217.4 — (1,137.4 ) — Income before income taxes 895.7 1,155.4 315.0 (1,114.1 ) 1,252.0 Provision (benefit) for income taxes 99.2 353.2 12.5 (38.9 ) 426.0 Net income 796.5 802.2 302.5 (1,075.2 ) 826.0 Net income attributable to noncontrolling interest — — — 29.5 29.5 Net income attributable to controlling interest $ 796.5 $ 802.2 $ 302.5 $ (1,104.7 ) $ 796.5 Net income $ 796.5 $ 802.2 $ 302.5 $ (1,075.2 ) $ 826.0 Other comprehensive income (loss) (6.0 ) — 5.5 — (0.5 ) Comprehensive income 790.5 802.2 308.0 (1,075.2 ) 825.5 Comprehensive income attributable to noncontrolling interest — — — 32.5 32.5 Comprehensive income attributable to controlling interest $ 790.5 $ 802.2 $ 308.0 $ (1,107.7 ) $ 793.0 Statement of Operations and Comprehensive Income Year Ended December 31, 2014 Parent Combined Combined Eliminations Consolidated (in millions) Revenues $ — $ 4,290.3 $ 2,700.2 $ (820.5 ) $ 6,170.0 Cost of revenues 2.3 3,345.5 2,098.5 (826.5 ) 4,619.8 Selling, engineering, and administrative expenses 115.6 124.9 163.1 — 403.6 Gains on dispositions on property (1.4 ) 41.3 64.5 — 104.4 119.3 3,429.1 2,197.1 (826.5 ) 4,919.0 Operating profit (loss) (119.3 ) 861.2 503.1 6.0 1,251.0 Other (income) expense (60.3 ) 57.1 190.1 — 186.9 Equity in earnings of subsidiaries, net of taxes 741.7 191.8 — (933.5 ) — Income before income taxes 682.7 995.9 313.0 (927.5 ) 1,064.1 Provision (benefit) for income taxes 4.5 297.2 50.6 2.5 354.8 Net income 678.2 698.7 262.4 (930.0 ) 709.3 Net income attributable to noncontrolling interest — — — 31.1 31.1 Net income attributable to controlling interest $ 678.2 $ 698.7 $ 262.4 $ (961.1 ) $ 678.2 Net income $ 678.2 $ 698.7 $ 262.4 $ (930.0 ) $ 709.3 Other comprehensive income (loss) (33.9 ) (8.5 ) 11.4 — (31.0 ) Comprehensive income 644.3 690.2 273.8 (930.0 ) 678.3 Comprehensive income attributable to noncontrolling interest — — — 34.1 34.1 Comprehensive income attributable to controlling interest $ 644.3 $ 690.2 $ 273.8 $ (964.1 ) $ 644.2 Balance Sheet December 31, 2016 Parent Combined Combined Eliminations Consolidated (in millions) Assets: Cash and cash equivalents $ 537.9 $ 5.2 $ 51.3 $ (31.0 ) $ 563.4 Short-term marketable securities 234.7 — — — 234.7 Receivables, net of allowance 1.1 201.1 176.5 — 378.7 Income tax receivable 99.9 — 2.2 — 102.1 Inventory — 409.2 266.5 (9.9 ) 665.8 Property, plant, and equipment, net 48.8 2,329.6 4,047.6 (459.2 ) 5,966.8 Investments in and advances to subsidiaries 4,862.4 2,441.1 470.0 (7,773.5 ) — Restricted cash — — 147.1 31.1 178.2 Goodwill and other assets 150.8 584.9 301.2 (1.3 ) 1,035.6 $ 5,935.6 $ 5,971.1 $ 5,462.4 $ (8,243.8 ) $ 9,125.3 Liabilities: Accounts payable $ 5.7 $ 45.2 $ 105.7 $ (0.5 ) $ 156.1 Accrued liabilities 200.0 84.2 143.2 (1.3 ) 426.1 Debt 818.7 32.0 2,205.9 — 3,056.6 Deferred income — 21.9 1.6 — 23.5 Deferred income taxes 78.6 984.9 9.1 0.3 1,072.9 Advances from subsidiaries 458.2 11.5 — (469.7 ) — Other liabilities 63.3 13.5 2.2 — 79.0 Total stockholders' equity 4,311.1 4,777.9 2,994.7 (7,772.6 ) 4,311.1 $ 5,935.6 $ 5,971.1 $ 5,462.4 $ (8,243.8 ) $ 9,125.3 Balance Sheet December 31, 2015 Parent Combined Combined Eliminations Consolidated (in millions) Assets: Cash and cash equivalents $ 768.3 $ 1.7 $ 51.1 $ (35.1 ) $ 786.0 Short-term marketable securities 84.9 — — — 84.9 Receivables, net of allowance 0.1 196.3 173.5 — 369.9 Income tax receivable 94.9 — — — 94.9 Inventory — 634.1 325.4 (16.4 ) 943.1 Property, plant, and equipment, net 37.7 1,597.0 4,204.3 (491.0 ) 5,348.0 Investments in and advances to subsidiaries 6,262.9 3,633.1 908.5 (10,804.5 ) — Restricted cash — 0.2 160.5 35.1 195.8 Goodwill and other assets 178.8 579.8 304.7 — 1,063.3 $ 7,427.6 $ 6,642.2 $ 6,128.0 $ (11,311.9 ) $ 8,885.9 Liabilities: Accounts payable $ 9.9 $ 62.9 $ 144.3 $ (0.3 ) $ 216.8 Accrued liabilities 224.9 137.3 168.5 (1.1 ) 529.6 Debt 800.6 35.6 2,359.2 — 3,195.4 Deferred income — 25.4 1.7 — 27.1 Deferred income taxes 31.2 711.3 9.4 0.3 752.2 Advances from subsidiaries 2,212.2 — — (2,212.2 ) — Other liabilities 100.1 13.6 2.4 — 116.1 Total stockholders' equity 4,048.7 5,656.1 3,442.5 (9,098.6 ) 4,048.7 $ 7,427.6 $ 6,642.2 $ 6,128.0 $ (11,311.9 ) $ 8,885.9 Statement of Cash Flows Year Ended December 31, 2016 Parent Combined Combined Eliminations Consolidated (in millions) Operating activities: Net income $ 343.6 $ 308.7 $ 106.5 $ (394.1 ) $ 364.7 Equity in earnings of subsidiaries, net of taxes (387.5 ) (91.8 ) — 479.3 — Other 64.5 482.1 212.3 (33.4 ) 725.5 Net cash provided (required) by operating activities - continuing 20.6 699.0 318.8 51.8 1,090.2 Net cash provided by operating activities - discontinued — — — — — Net cash provided (required) by operating activities 20.6 699.0 318.8 51.8 1,090.2 Investing activities: (Increase) decrease in short-term marketable securities (149.8 ) — — — (149.8 ) Proceeds from railcar lease fleet sales owned more than one year — 27.3 10.4 — 37.7 Proceeds from disposition of property and other assets — 4.1 11.9 — 16.0 Capital expenditures – leasing — (798.7 ) (0.4 ) — (799.1 ) Capital expenditures – manufacturing and other (18.0 ) (8.6 ) (107.7 ) — (134.3 ) Acquisitions, net of cash acquired — — — — — (Increase) decrease in investment in partially-owned subsidiaries — 17.1 — (17.1 ) — Divestitures — — — — — Other — 0.8 6.0 — 6.8 Net cash provided (required) by investing activities - continuing (167.8 ) (758.0 ) (79.8 ) (17.1 ) (1,022.7 ) Net cash provided by investing activities - discontinued — — — — — Net cash provided (required) by investing activities (167.8 ) (758.0 ) (79.8 ) (17.1 ) (1,022.7 ) Financing activities: Proceeds from issuance of common stock, net — — — — — Excess tax benefits from stock-based compensation 1.0 — — — 1.0 Payments to retire debt — (3.6 ) (158.9 ) — (162.5 ) Proceeds from issuance of debt — — — — — (Increase) decrease in restricted cash — 0.2 13.4 4.0 17.6 Shares repurchased (34.7 ) — — — (34.7 ) Dividends paid to common shareholders (66.7 ) — — — (66.7 ) Purchase of shares to satisfy employee tax on vested stock (16.3 ) — — — (16.3 ) Contributions from noncontrolling interest — — — — — Contributions from controlling interest in partially-owned leasing subsidiaries — — — — — Distributions to noncontrolling interest — — (26.4 ) — (26.4 ) Distributions to controlling interest in partially-owned leasing subsidiaries — — (17.1 ) 17.1 — Change in intercompany financing between entities 33.5 65.9 (47.7 ) (51.7 ) — Other — — (2.1 ) — (2.1 ) Net cash provided (required) by financing activities - continuing (83.2 ) 62.5 (238.8 ) (30.6 ) (290.1 ) Net cash provided (required) by financing activities - discontinued — — — — — Net cash provided (required) by financing activities (83.2 ) 62.5 (238.8 ) (30.6 ) (290.1 ) Net increase (decrease) in cash and cash equivalents (230.4 ) 3.5 0.2 4.1 (222.6 ) Cash and cash equivalents at beginning of period 768.3 1.7 51.1 (35.1 ) 786.0 Cash and cash equivalents at end of period $ 537.9 $ 5.2 $ 51.3 $ (31.0 ) $ 563.4 Statement of Cash Flows Year Ended December 31, 2015 Parent Combined Combined Eliminations Consolidated (in millions) Operating activities: Net income $ 796.5 $ 802.2 $ 302.5 $ (1,075.2 ) $ 826.0 Equity in earnings of subsidiaries, net of taxes (920.0 ) (217.4 ) — 1,137.4 — Other 57.8 (33.1 ) 146.4 (57.4 ) 113.7 Net cash provided (required) by operating activities - continuing (65.7 ) 551.7 448.9 4.8 939.7 Net cash provided by operating activities - discontinued — — — — — Net cash provided (required) by operating activities (65.7 ) 551.7 448.9 4.8 939.7 Investing activities: (Increase) decrease in short-term marketable securities (9.9 ) — — — (9.9 ) Proceeds from railcar lease fleet sales owned more than one year — 290.6 267.2 (43.2 ) 514.6 Proceeds from disposition of property and other assets — 1.9 6.3 — 8.2 Capital expenditures – leasing — (821.6 ) (55.4 ) 43.2 (833.8 ) Capital expenditures – manufacturing and other (14.5 ) (39.1 ) (142.4 ) — (196.0 ) Acquisitions, net of cash acquired — — (46.2 ) — (46.2 ) (Increase) decrease in investment in partially-owned subsidiaries — 24.8 — (24.8 ) — Divestitures — — 51.3 — 51.3 Other — 0.2 0.3 — 0.5 Net cash provided (required) by investing activities - continuing (24.4 ) (543.2 ) 81.1 (24.8 ) (511.3 ) Net cash provided by investing activities - discontinued — — — — — Net cash provided (required) by investing activities (24.4 ) (543.2 ) 81.1 (24.8 ) (511.3 ) Financing activities: Proceeds from issuance of common stock, net 0.3 — — — 0.3 Excess tax benefits from stock-based compensation 13.3 — — — 13.3 Payments to retire debt — (3.2 ) (584.0 ) — (587.2 ) Proceeds from issuance of debt (1.5 ) — 243.9 — 242.4 (Increase) decrease in restricted cash — (0.2 ) 43.3 5.2 48.3 Shares repurchased (115.0 ) — — — (115.0 ) Dividends paid to common shareholders (64.9 ) — — — (64.9 ) Purchase of shares to satisfy employee tax on vested stock (27.5 ) — — — (27.5 ) Contributions from noncontrolling interest — — — — — Contributions from controlling interest in partially-owned leasing subsidiaries — — — — — Distributions to noncontrolling interest — — (39.2 ) — (39.2 ) Distributions to controlling interest in partially-owned leasing subsidiaries — — (24.8 ) 24.8 — Change in intercompany financing between entities 226.0 (14.5 ) (206.7 ) (4.8 ) — Other — — (0.8 ) — (0.8 ) Net cash provided (required) by financing activities - continuing 30.7 (17.9 ) (568.3 ) 25.2 (530.3 ) Net cash provided (required) by financing activities - discontinued — — — — — Net cash provided (required) by financing activities 30.7 (17.9 ) (568.3 ) 25.2 (530.3 ) Net increase (decrease) in cash and cash equivalents (59.4 ) (9.4 ) (38.3 ) 5.2 (101.9 ) 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 $ 768.3 $ 1.7 $ 51.1 $ (35.1 ) $ 786.0 Statement of Cash Flows Year Ended December 31, 2014 Parent Combined Combined Eliminations Consolidated (in millions) Operating activities: Net income $ 678.2 $ 698.7 $ 262.4 $ (930.0 ) $ 709.3 Equity in earnings of subsidiaries, net of taxes (741.7 ) (191.8 ) — 933.5 — Other (26.5 ) (99.0 ) 240.1 (5.7 ) 108.9 Net cash provided (required) by operating activities - continuing (90.0 ) 407.9 502.5 (2.2 ) 818.2 Net cash provided by operating activities - discontinued — — 1.0 — 1.0 Net cash provided (required) by operating activities (90.0 ) 407.9 503.5 (2.2 ) 819.2 Investing activities: (Increase) decrease in short-term marketable securities 74.7 — — — 74.7 Proceeds from railcar lease fleet sales owned more than one year — 549.2 140.3 (423.7 ) 265.8 Proceeds from disposition of property and other assets 0.3 — 22.7 — 23.0 Capital expenditures – leasing — (222.8 ) (446.2 ) 423.7 (245.3 ) Capital expenditures – manufacturing and other (8.3 ) (58.3 ) (152.7 ) — (219.3 ) Acquisitions, net of cash acquired — (595.6 ) (118.8 ) — (714.4 ) (Increase) decrease in investment in partially-owned subsidiaries — (4.5 ) — 4.5 — Divestitures — — — — — Other 0.9 (0.8 ) 0.7 — 0.8 Net cash provided (required) by investing activities - continuing 67.6 (332.8 ) (554.0 ) 4.5 (814.7 ) Net cash provided by investing activities - discontinued — — — — — Net cash provided (required) by investing activities 67.6 (332.8 ) (554.0 ) 4.5 (814.7 ) Financing activities: Proceeds from issuance of common stock, net 0.6 — — — 0.6 Excess tax benefits from stock-based compensation 24.4 — — — 24.4 Payments to retire debt (0.5 ) (3.1 ) (183.0 ) — (186.6 ) Proceeds from issuance of debt 395.7 — 331.6 — 727.3 (Increase) decrease in restricted cash — — 13.9 (12.9 ) 1.0 Shares repurchased (36.5 ) — — — (36.5 ) Dividends paid to common shareholders (54.4 ) — — — (54.4 ) Purchase of shares to satisfy employee tax on vested stock (38.3 ) — — — (38.3 ) Contributions from noncontrolling interest — — 49.6 — 49.6 Contributions from controlling interest in partially-owned leasing subsidiaries — — 4.5 (4.5 ) — Distributions to noncontrolling interest — — (28.2 ) — (28.2 ) Distributions to controlling interest in partially-owned leasing subsidiaries — — — — — Change in intercompany financing between entities 149.4 (62.3 ) (89.3 ) 2.2 — Other — (0.7 ) (1.8 ) — (2.5 ) Net cash provided (required) by financing activities - continuing 440.4 (66.1 ) 97.3 (15.2 ) 456.4 Net cash provided (required) by financing activities - discontinued — — (1.5 ) — (1.5 ) Net cash provided (required) by financing activities 440.4 (66.1 ) 95.8 (15.2 ) 454.9 Net increase (decrease) in cash and cash equivalents 418.0 9.0 45.3 (12.9 ) 459.4 Cash and cash equivalents at beginning of period 409.7 2.1 44.1 (27.4 ) 428.5 Cash and cash equivalents at end of period $ 827.7 $ 11.1 $ 89.4 $ (40.3 ) $ 887.9 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Three Months Ended March 31, June 30, September 30, December 31, (in millions except per share data) Revenues: Manufacturing $ 1,010.1 $ 888.8 $ 938.5 $ 926.0 Leasing 177.8 296.1 173.2 177.8 1,187.9 1,184.9 1,111.7 1,103.8 Operating costs: Costs of revenues: Manufacturing 793.9 719.1 745.4 761.2 Leasing 96.0 178.6 81.9 80.0 889.9 897.7 827.3 841.2 Selling, engineering, and administrative expenses 96.5 106.7 102.3 101.9 Gains on disposition of property 1.9 11.1 1.5 2.9 Operating profit 203.4 191.6 183.6 163.6 Net income 102.1 98.8 89.6 74.2 Net income attributable to Trinity Industries, Inc. 97.2 94.6 84.2 67.6 Net income attributable to Trinity Industries, Inc. per common share: Basic $ 0.64 $ 0.62 $ 0.55 $ 0.44 Diluted $ 0.64 $ 0.62 $ 0.55 $ 0.44 Three Months Ended March 31, June 30, September 30, December 31, (in millions except per share data) Revenues: Manufacturing $ 1,382.5 $ 1,445.4 $ 1,295.6 $ 1,177.6 Leasing 244.2 231.4 246.6 369.4 1,626.7 1,676.8 1,542.2 1,547.0 Operating costs: Costs of revenues: Manufacturing 1,084.5 1,101.8 976.0 881.6 Leasing 126.6 117.8 133.4 234.5 1,211.1 1,219.6 1,109.4 1,116.1 Selling, engineering, and administrative expenses 98.3 114.4 126.6 137.1 Gains on disposition of property 15.8 40.1 58.7 64.2 Operating profit 333.1 382.9 364.9 358.0 Net income 189.0 220.8 212.2 204.0 Net income attributable to Trinity Industries, Inc. 180.2 212.0 204.3 200.0 Net income attributable to Trinity Industries, Inc. per common share: Basic $ 1.15 $ 1.36 $ 1.32 $ 1.30 Diluted $ 1.13 $ 1.33 $ 1.31 $ 1.30 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The financial statements of Trinity Industries, Inc. and its consolidated subsidiaries (“Trinity,” “Company,” “we” or “our”) include 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. All significant intercompany accounts and transactions have been eliminated. |
Stockholders' Equity | Stockholders' Equity On May 5, 2014 , the Company's Board of Directors authorized a 2 -for-1 stock split on its common shares in the form of a 100% stock dividend. The additional shares were distributed on June 19, 2014 , to shareholders of record at the close of business on June 5, 2014 . The stock split is reflected in the consolidated statement of stockholders' equity by the reclassification of $78.0 million from "Capital in Excess of Par Value" to "Common Stock" representing the par value of the additional shares issued. In December 2015 , the Company’s Board of Directors renewed its $250 million share repurchase program effective January 1, 2016 through December 31, 2017 . The new program replaced the previous program which expired on December 31, 2015 . Under the new program, 2,070,600 shares were repurchased during the year ended December 31, 2016 , at a cost of $34.7 million . During the year ended December 31, 2015 , the Company repurchased 3,947,320 shares at a cost of $115.0 million . 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 | 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. Revenue from rentals and operating leases, including contracts that 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 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. |
Income Taxes | Income Taxes The liability method is used to account for income taxes. Deferred income taxes represent the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances reduce deferred tax assets to an amount that will more likely than not be realized. The Company regularly evaluates the likelihood of realization of tax benefits derived from positions it has taken in various federal and state filings after consideration of all relevant facts, circumstances, and available information. For those tax positions that are deemed more likely than not to be sustained, the Company recognizes the benefit it believes is cumulatively greater than 50% likely to be realized. To the extent the Company were to prevail in matters for which accruals have been established or be required to pay amounts in excess of recorded reserves, the effective tax rate in a given financial statement period could be materially impacted. |
Financial Instruments, Cash and Cash Equivalents | 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, 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 (using level two inputs), receivables, and accounts payable are considered to be representative of their respective fair values. At December 31, 2016 , one Rail Group customer's net receivable balance, substantially all paid subsequent to December 31, 2016, accounted for 21% of the consolidated net receivables balance outstanding. |
Inventories | Inventories Inventories are valued at the lower of cost or market, with cost determined principally on the first in first out method. Market is replacement cost or net realizable value. Work in process and finished goods include material, labor, and overhead. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. The estimated useful lives are: buildings and improvements - 3 to 30 years ; leasehold improvements - the lesser of the term of the lease or 7 years ; machinery and equipment - 2 to 10 years ; information systems hardware and software - 2 to 5 years ; and railcars in our lease fleet - generally 35 years . The costs of ordinary maintenance and repair are charged to operating costs. |
Long-lived Assets | Long-lived Assets The Company periodically evaluates the carrying value of long-lived assets to be held and used for potential impairment. The carrying value of long-lived assets to be held and used is considered impaired only when their carrying value is not recoverable through undiscounted future cash flows and the fair value of the assets is less than their carrying value. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risks involved or market quotes as available. Impairment losses on long-lived assets held for sale are determined in a similar manner, except that fair values are reduced by the estimated cost to dispose of the assets. Based on the Company's evaluations, no impairment charges were determined to be necessary as of December 31, 2016 and 2015 . |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is required to be tested for impairment annually, or on an interim basis whenever events or circumstances change, indicating that the carrying amount of the goodwill might be impaired. The quantitative goodwill impairment test is a two-step process with step one requiring the comparison of the reporting unit's estimated fair value with the carrying amount of its net assets. If necessary, step two of the impairment test determines the amount of goodwill impairment to be recorded when the reporting unit's recorded net assets exceed its fair value. Impairment is assessed at the “reporting unit” level by applying a fair value-based test for each unit with recorded goodwill. The estimates and judgments that most significantly affect the fair value calculations are assumptions, consisting of level three inputs, related to revenue and operating profit growth, discount rates and exit multiples. As of December 31, 2016 and 2015 , the Company's annual impairment test of goodwill was completed at the reporting unit level and no impairment charges were determined to be necessary. The net book value of intangible assets totaled $79.7 million and $86.9 million as of December 31, 2016 and 2015 , respectively, and included intangible assets with defined useful lives of $43.1 million and $50.3 million , respectively, which are amortized over their estimated useful lives ranging from 1 to 20 years . Intangible assets were evaluated for potential impairment as of December 31, 2016 and 2015 . |
Restricted Cash | Restricted Cash Restricted cash consists of cash and cash equivalents held either as collateral for the Company's non-recourse debt and lease obligations or as security for the performance of certain product sales agreements. As such, they are restricted in use. |
Insurance | Insurance The Company is effectively self-insured for workers' compensation claims. A third party administrator is used to process claims. We accrue our workers' compensation liability based upon independent actuarial studies. |
Warranties | Warranties The Company provides various express, limited product warranties that generally range from one to five years depending on the product. The warranty costs are estimated using a two-step approach. First, an engineering estimate is made for the cost of all claims that have been asserted by customers. Second, based on historical, accepted claims experience, a cost is accrued for all products still within a warranty period for which no claims have been filed. The Company provides for the estimated cost of product warranties at the time revenue is recognized related to products covered by warranties, and assesses the adequacy of the resulting reserves on a quarterly basis. |
Foreign Currency Translation | Foreign Currency Translation Certain operations outside the United States prepare financial statements in currencies other than the United States dollar. The income statement amounts are translated at average exchange rates for the year, while the assets and liabilities are translated at year-end exchange rates. Translation adjustments are accumulated as a separate component of stockholders' equity and other comprehensive income. The functional currency of our Mexico operations is considered to be the United States dollar. The functional currency of our Canadian operations is considered to be the Canadian dollar. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive net income (loss) consists of foreign currency translation adjustments, the effective unrealized gains and losses on the Company's derivative financial instruments, and the net actuarial gains and losses of the Company's defined benefit plans, the sum of which, along with net income (loss), constitutes comprehensive net income (loss). See Note 15 Accumulated Other Comprehensive Loss (“AOCL”). All components are shown net of tax. |
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. The Company plans to adopt ASU 2014-09 effective January 1, 2018 using the modified retrospective method of adoption. Under this method, the guidance will be applied only to the most current period presented in the financial statements and the cumulative effect of initially applying the standard will result in an adjustment to the opening balance of retained earnings as of the date of adoption. Using both internal and external resources, the Company continues to evaluate the requirements of the standard and their application to our various business units. While our technical analysis is on-going, we anticipate a change in the timing of revenue recognition for our wind towers and utility structures product lines within our Energy Equipment Group, no longer recognizing revenue when products are delivered, but under the new guidance, recognizing revenue over time as products are manufactured. The impact of this change cannot be reasonably estimated at this time. We expect revenue recognition policies related to our other business segments to remain substantially unchanged as a result of adopting ASU 2014-09, although this could change based on our on-going analysis. Additionally, we do not anticipate significant changes in business processes or systems. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, "Leases", ("ASU 2016-02") which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will become effective for public companies during interim and annual reporting periods beginning after December 15, 2018 with early adoption permitted. The Company plans to adopt ASU 2016-02 effective January 1, 2019. We are continuing to assess the potential effects of the new standard, including its effects on our consolidated financial statements and the accounting for revenue from full service leases. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting", ("ASU 2016-09") which changes how companies account for certain aspects of share-based payments to employees. Excess tax benefits or deficiencies related to vested awards, previously recognized in stockholders' equity, will be required to be recognized in the income statement when the awards vest. ASU 2016-09 became effective for public companies during interim and annual reporting periods beginning after December 15, 2016 with early adoption permitted. Accordingly, the Company adopted this new standard on January 1, 2017. The effect of adopting this standard will result in volatility in the provision for income taxes depending on fluctuations in the price of the Company's stock. In December 2016, the FASB issued Accounting Standards Update No. 2016-18, "Restricted Cash", ("ASU 2016-18") which clarifies how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. The new guidance requires a reconciliation of totals in the statement of cash flows to the related cash and cash equivalents and restricted cash captions in the balance sheet. ASU 2016-18 will become effective for public companies during interim and annual reporting periods beginning after December 15, 2017 with early adoption permitted. The Company plans to adopt ASU 2016-18 effective January 1, 2018. |
Management's Estimates | Management's Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition and divestiture activity | The Company's acquisition and divestiture activities are summarized below: Year Ended December 31, 2016 2015 2014 (in millions) Acquisitions: Purchase price $ — $ 46.2 $ 720.9 Net cash paid $ — $ 46.2 $ 714.4 Goodwill recorded $ — $ — $ 495.0 Divestitures: Proceeds $ — $ 51.3 $ — Gain recognized $ — $ 8.3 $ — Goodwill charged off $ — $ 17.3 $ — |
Final purchase price allocation | The following table represents our final purchase price allocation using level three inputs (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 |
Intangibles arising from the Meyer acquisition | Based on our final valuation, other assets include intangibles arising from the Meyer acquisition as follows (in millions): Weighted average useful life Customer relationships $ 35.3 10.5 years Trademarks/trade names 34.1 Indefinite Technology 5.6 5.0 years $ 75.0 |
Pro-forma operating results | The operating results of our 2014 acquisitions, as summarized in the following table, are included in the consolidated statements of operations from their date of acquisition, exclude transaction-related acquisition costs that are included in the Corporate segment, and include additional amortization expense resulting from the preliminary purchase price allocation: Year Ended (in millions) Revenues 187.4 Operating profit 2.4 The following table represents the pro-forma consolidated operating results of the Company as if our 2014 acquisitions had been acquired on January 1, 2013. The pro-forma information should not be considered indicative of the results that would have occurred if the acquisitions had been completed on January 1, 2013, nor is such pro-forma information necessarily indicative of future results. Year Ended December 31, 2014 Year Ended December 31, 2013 (in millions) Revenues $ 6,369.8 $ 4,830.8 Operating profit $ 1,274.4 $ 834.1 |
Acquisition activity by segment | The aggregate purchase price related to our acquisition activity for the years ended December 31, 2016, 2015, and 2014 by segment follows: Year ended December 31, 2016 2015 2014 (in millions) Construction Products Group $ — $ 46.2 $ 6.1 Energy Equipment Group — — 714.8 $ — $ 46.2 $ 720.9 |
Fair Value Accounting (Tables)
Fair Value Accounting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents $ 188.7 $ — $ — $ 188.7 Restricted cash 178.2 — — 178.2 Equity instruments (1) — 3.1 — 3.1 Fuel derivative instruments (1) — 0.3 — 0.3 Total assets $ 366.9 $ 3.4 $ — $ 370.3 Liabilities: Interest rate hedge: (2) Partially-owned subsidiaries $ — $ 0.9 $ — $ 0.9 Total liabilities $ — $ 0.9 $ — $ 0.9 Fair Value Measurement as of December 31, 2015 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents $ 174.0 $ — $ — $ 174.0 Restricted cash 195.8 — — 195.8 Total assets $ 369.8 $ — $ — $ 369.8 Liabilities: Interest rate hedges: (2) Partially-owned subsidiaries $ — $ 1.6 $ — $ 1.6 Fuel derivative instruments (2) — 0.8 — 0.8 Total liabilities $ — $ 2.4 $ — $ 2.4 (1) Included in other assets on the consolidated balance sheet. (2) 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: December 31, 2016 December 31, 2015 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (in millions) Recourse: Senior notes $ 399.6 $ 386.3 $ 399.6 $ 370.3 Convertible subordinated notes 449.4 575.5 449.4 534.8 Less: unamortized discount (26.7 ) (43.8 ) 422.7 405.6 Capital lease obligations 32.1 32.1 35.8 35.8 Other — — 0.5 0.5 854.4 993.9 841.5 941.4 Less: unamortized debt issuance costs (3.8 ) (4.8 ) 850.6 836.7 Non-recourse: 2006 secured railcar equipment notes 194.2 201.5 204.1 218.2 2009 secured railcar equipment notes 172.5 189.9 179.2 207.2 2010 secured railcar equipment notes 280.6 284.3 296.2 314.2 TILC warehouse facility 204.1 204.1 264.3 264.3 TRL 2012 secured railcar equipment notes 425.5 395.6 449.1 436.9 TRIP Master Funding secured railcar equipment notes 955.5 960.6 997.8 1,039.5 2,232.4 2,236.0 2,390.7 2,480.3 Less: unamortized debt issuance costs (26.4 ) (32.0 ) 2,206.0 2,358.7 Total $ 3,056.6 $ 3,229.9 $ 3,195.4 $ 3,421.7 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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. Year Ended December 31, 2016 Revenues Operating Profit (Loss) Assets Depreciation & Amortization Capital Expenditures External Intersegment Total (in millions) Rail Group $ 2,006.9 $ 1,070.4 $ 3,077.3 $ 459.9 $ 1,014.1 $ 41.7 $ 29.2 Construction Products Group 510.6 12.6 523.2 72.6 470.3 23.8 49.9 Inland Barge Group 403.0 0.1 403.1 45.3 120.8 8.4 3.2 Energy Equipment Group 834.7 178.0 1,012.7 133.1 1,035.7 36.6 25.0 Railcar Leasing and Management Services Group 824.9 2.1 827.0 360.1 6,095.7 156.2 799.1 All Other 8.2 84.0 92.2 (18.9 ) 114.3 7.7 9.0 Segment Totals before Eliminations and Corporate 4,588.3 1,347.2 5,935.5 1,052.1 8,850.9 274.4 915.4 Corporate — — — (131.0 ) 1,079.3 8.7 18.0 Eliminations – Lease subsidiary — (1,021.9 ) (1,021.9 ) (178.2 ) (798.1 ) — — Eliminations – Other — (325.3 ) (325.3 ) (0.7 ) (6.8 ) (0.1 ) — Consolidated Total $ 4,588.3 $ — $ 4,588.3 $ 742.2 $ 9,125.3 $ 283.0 $ 933.4 Year Ended December 31, 2015 Revenues Operating Profit (Loss) Assets Depreciation & Amortization Capital Expenditures External Intersegment Total (in millions) Rail Group $ 3,236.2 $ 1,225.6 $ 4,461.8 $ 931.6 $ 1,245.3 $ 38.8 $ 84.0 Construction Products Group 520.6 12.0 532.6 54.5 445.1 24.1 28.1 Inland Barge Group 652.9 — 652.9 117.0 157.7 10.5 5.8 Energy Equipment Group 883.6 230.1 1,113.7 150.9 1,118.3 38.2 53.5 Railcar Leasing and Management Services Group 1,091.6 13.2 1,104.8 606.2 5,358.2 142.3 833.8 All Other 7.8 104.5 112.3 (8.2 ) 64.2 4.8 9.8 Segment Totals before Eliminations and Corporate 6,392.7 1,585.4 7,978.1 1,852.0 8,388.8 258.7 1,015.0 Corporate — — — (152.6 ) 1,175.6 7.8 14.8 Eliminations – Lease subsidiary — (1,164.4 ) (1,164.4 ) (259.6 ) (673.0 ) — — Eliminations – Other — (421.0 ) (421.0 ) (0.9 ) (5.5 ) (0.1 ) — Consolidated Total $ 6,392.7 $ — $ 6,392.7 $ 1,438.9 $ 8,885.9 $ 266.4 $ 1,029.8 Year Ended December 31, 2014 Revenues Operating Profit (Loss) Assets Depreciation & Amortization Capital Expenditures External Intersegment Total (in millions) Rail Group $ 3,077.6 $ 739.2 $ 3,816.8 $ 724.1 $ 1,322.4 $ 32.7 $ 98.3 Construction Products Group 546.1 5.6 551.7 65.4 459.3 22.7 37.1 Inland Barge Group 638.5 — 638.5 114.4 177.1 9.3 9.7 Energy Equipment Group 796.0 196.3 992.3 108.1 1,160.0 33.0 56.0 Railcar Leasing and Management Services Group 1,106.4 11.9 1,118.3 516.3 4,939.1 130.0 245.3 All Other 5.4 105.0 110.4 (25.6 ) 56.3 9.6 9.3 Segment Totals before Eliminations and Corporate 6,170.0 1,058.0 7,228.0 1,502.7 8,114.2 237.3 455.7 Corporate — — — (119.0 ) 1,141.6 7.4 8.9 Eliminations – Lease subsidiary — (710.1 ) (710.1 ) (133.1 ) (557.2 ) — — Eliminations – Other — (347.9 ) (347.9 ) 0.4 (3.3 ) (0.1 ) — Consolidated Total $ 6,170.0 $ — $ 6,170.0 $ 1,251.0 $ 8,695.3 $ 244.6 $ 464.6 |
Revenues, operating profit, total assets, and long-lived assets for Mexico operations | Revenues and operating profit for our Mexico operations for the years ended December 31, 2016 , 2015 , and 2014 are presented below. Our Canadian operations were not significant in relation to the consolidated financial statements. Year Ended December 31, 2016 2015 2014 (in millions) Mexico: Revenues: External $ 118.9 $ 106.0 $ 130.4 Intercompany 199.0 230.6 217.6 $ 317.9 $ 336.6 $ 348.0 Operating profit $ 59.0 $ 77.1 $ 16.8 Total assets and long-lived assets for our Mexico operations as of December 31, 2016 and 2015 are presented below: Total Assets Long-Lived Assets December 31, 2016 2015 2016 2015 (in millions) Mexico $ 319.0 $ 318.5 $ 195.5 $ 207.5 |
Railcar Leasing and Managemen35
Railcar Leasing and Management Services Group (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Sale Leaseback Transaction [Line Items] | |
Selected consolidating financial information for the Leasing Group | Selected consolidating financial information for the Leasing Group is as follows: December 31, 2016 Leasing Group Wholly- Owned Subsidiaries Partially- Owned Subsidiaries Manufacturing/ Corporate Total (in millions) Cash, cash equivalents, and short-term marketable securities $ 7.2 $ — $ 790.9 $ 798.1 Property, plant, and equipment, net $ 3,923.6 $ 1,879.6 $ 961.7 $ 6,764.9 Net deferred profit on railcars sold to the Leasing Group (798.1 ) Consolidated property, plant, and equipment, net $ 5,966.8 Restricted cash $ 99.7 $ 78.4 $ 0.1 $ 178.2 Debt: Recourse $ 32.1 $ — $ 849.4 $ 881.5 Less: unamortized discount — — (27.1 ) (27.1 ) Less: unamortized debt issuance costs (0.1 ) — (3.7 ) (3.8 ) 32.0 — 818.6 850.6 Non-recourse 851.4 1,381.0 — 2,232.4 Less: unamortized debt issuance costs (11.4 ) (15.0 ) — (26.4 ) 840.0 1,366.0 — 2,206.0 Total debt $ 872.0 $ 1,366.0 $ 818.6 $ 3,056.6 Net deferred tax liabilities $ 956.6 $ 2.0 $ 98.4 $ 1,057.0 December 31, 2015 Leasing Group Wholly- Owned Subsidiaries Partially- Owned Subsidiaries Manufacturing/ Corporate Total (in millions) Cash, cash equivalents, and short-term marketable securities $ 3.8 $ — $ 867.1 $ 870.9 Property, plant, and equipment, net $ 3,126.3 $ 1,938.6 $ 956.1 $ 6,021.0 Net deferred profit on railcars sold to the Leasing Group (673.0 ) Consolidated property, plant, and equipment, net $ 5,348.0 Restricted cash $ 105.9 $ 89.9 $ — $ 195.8 Debt: Recourse $ 35.8 $ — $ 849.9 $ 885.7 Less: unamortized discount — — (44.2 ) (44.2 ) Less: unamortized debt issuance costs (0.1 ) — (4.7 ) (4.8 ) 35.7 — 801.0 836.7 Non-recourse 943.8 1,446.9 — 2,390.7 Less: unamortized debt issuance costs (15.1 ) (16.9 ) — (32.0 ) 928.7 1,430.0 — 2,358.7 Total debt $ 964.4 $ 1,430.0 $ 801.0 $ 3,195.4 Net deferred tax liabilities $ 746.0 $ 1.4 $ (12.6 ) $ 734.8 |
Selected consolidating income statement information for the Leasing Group | Year Ended December 31, Percent Change 2016 2015 2014 2016 versus 2015 2015 versus 2014 ($ in millions) Revenues: Leasing and management $ 700.9 $ 699.9 $ 632.0 0.1 % 10.7 % Sale of railcars owned one year or less at the time of sale 126.1 404.9 486.3 Total revenues $ 827.0 $ 1,104.8 $ 1,118.3 (25.1 ) (1.2 ) Operating profit: Leasing and management $ 312.5 $ 331.1 $ 287.9 (5.6 ) 15.0 Railcar sales: Railcars owned one year or less at the time of sale 34.1 109.0 136.1 Railcars owned more than one year at the time of sale 13.5 166.1 92.3 Total operating profit $ 360.1 $ 606.2 $ 516.3 (40.6 ) 17.4 Operating profit margin: Leasing and management 44.6 % 47.3 % 45.6 % Railcar sales * * * Total operating profit margin 43.5 % 54.9 % 46.2 % Selected expense information (1) : Depreciation $ 156.2 $ 142.3 $ 130.0 9.8 9.5 Maintenance and compliance $ 104.3 $ 97.3 $ 78.9 7.2 23.3 Rent $ 39.3 $ 41.6 $ 52.9 (5.5 ) (21.4 ) Interest $ 125.2 $ 138.8 $ 153.3 (9.8 ) (9.5 ) * Not meaningful (1) Depreciation, maintenance and compliance, 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. |
Schedule of proceeds received from sales to Element | During the year ended December 31, 2016 , 2015 , and 2014 the Company received proceeds from the sale of leased railcars as follows: Year Ended December 31, 2016 2015 2014 (in millions) Leasing Group: Railcars owned one year or less at the time of sale $ 126.1 $ 404.9 $ 486.3 Railcars owned more than one year at the time of sale 37.7 514.6 265.8 Rail Group 8.1 260.5 243.2 $ 171.9 $ 1,180.0 $ 995.3 |
Future contractual minimum rental revenues on leases | Future contractual minimum rental revenues on leases are as follows: 2017 2018 2019 2020 2021 Thereafter Total (in millions) Future contractual minimum rental revenues $ 521.5 $ 436.9 $ 356.1 $ 277.5 $ 177.2 $ 336.4 $ 2,105.6 |
Railroad transportation equipment leased from independent owner trusts | |
Sale Leaseback Transaction [Line Items] | |
Schedule of rental revenues | Future operating lease obligations of the Leasing Group’s subsidiaries as well as future contractual minimum rental revenues related to these leases due to the Leasing Group are as follows: 2017 2018 2019 2020 2021 Thereafter Total (in millions) Future operating lease obligations of Trusts’ railcars $ 29.2 $ 29.2 $ 28.8 $ 26.1 $ 26.1 $ 118.0 $ 257.4 Future contractual minimum rental revenues of Trusts’ railcars $ 44.8 $ 34.1 $ 24.0 $ 14.7 $ 9.6 $ 14.5 $ 141.7 |
Operating leases other than leases with the Trusts | |
Sale Leaseback Transaction [Line Items] | |
Schedule of rental revenues | Future amounts due as well as future contractual minimum rental revenues related to operating leases other than leases discussed above are as follows: 2017 2018 2019 2020 2021 Thereafter Total (in millions) Future operating lease obligations $ 12.1 $ 12.0 $ 9.5 $ 7.7 $ 7.6 $ 13.4 $ 62.3 Future contractual minimum rental revenues $ 15.3 $ 8.3 $ 6.2 $ 4.3 $ 3.4 $ 4.2 $ 41.7 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 % $ — $ (0.7 ) $ — TRIP Holdings warehouse loan $ 788.5 3.60 % $ — $ 5.9 $ 8.0 Open hedge: TRIP Master Funding secured railcar equipment notes $ 38.7 2.62 % $ 0.9 $ 0.4 $ 0.5 (1) Weighted average fixed interest rate |
Effect on statements of operations | Effect on interest expense-increase/(decrease) Year Ended December 31, Expected effect during next twelve months (1) 2016 2015 2014 (in millions) Expired hedges: 2006 secured railcar equipment notes $ (0.4 ) $ (0.3 ) $ (0.3 ) $ (0.2 ) Promissory notes $ — $ 1.2 $ 2.9 $ — TRIP Holdings warehouse loan $ 4.8 $ 4.9 $ 5.1 $ 4.5 Open hedges: TRIP Master Funding secured railcar equipment notes $ 0.9 $ 1.3 $ 1.5 $ 0.6 Promissory notes $ — $ 5.3 $ 15.4 $ — (1) Based on the fair value of open hedges as of December 31, 2016 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant, and equipment | The following table summarizes the components of property, plant, and equipment as of December 31, 2016 and 2015 . December 31, December 31, (in millions) Manufacturing/Corporate: Land $ 103.3 $ 86.5 Buildings and improvements 642.6 610.4 Machinery and other 1,151.1 1,095.9 Construction in progress 39.1 68.7 1,936.1 1,861.5 Less accumulated depreciation (974.4 ) (905.4 ) 961.7 956.1 Leasing: Wholly-owned subsidiaries: Machinery and other 10.7 10.7 Equipment on lease 4,673.0 3,763.5 4,683.7 3,774.2 Less accumulated depreciation (760.1 ) (647.9 ) 3,923.6 3,126.3 Partially-owned subsidiaries: Equipment on lease 2,309.4 2,307.7 Less accumulated depreciation (429.8 ) (369.1 ) 1,879.6 1,938.6 Deferred profit on railcars sold to the Leasing Group (948.2 ) (798.0 ) Less accumulated amortization 150.1 125.0 (798.1 ) (673.0 ) $ 5,966.8 $ 5,348.0 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by segment | Goodwill by segment is as follows: December 31, December 31, (in millions) Rail Group $ 134.6 $ 134.6 Construction Products Group 111.0 111.0 Energy Equipment Group 506.7 506.4 Railcar Leasing and Management Services Group 1.8 1.8 $ 754.1 $ 753.8 As of December 31, 2016 and 2015 , the Company's annual impairment test of goodwill was completed at the reporting unit level and no impairment charges were determined to be necessary. As of December 31, 2016 and 2015 , Rail Group goodwill is net of a 2009 impairment charge of $325.0 million . |
Warranties (Tables)
Warranties (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Product Warranties Disclosures [Abstract] | |
Changes in the accruals for warranties | The changes in the accruals for warranties for the years ended December 31, 2016, 2015, and 2014 are as follows: December 31, 2016 December 31, 2015 December 31, 2014 (in millions) Beginning balance $ 21.5 $ 17.8 $ 14.7 Warranty costs incurred (9.4 ) (7.1 ) (6.1 ) Warranty originations and revisions 8.0 17.2 12.6 Warranty expirations (4.4 ) (6.4 ) (3.4 ) Ending balance $ 15.7 $ 21.5 $ 17.8 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Components of debt | The following table summarizes the components of debt as of December 31, 2016 and 2015 : December 31, 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 $26.7 and $43.8 422.7 405.6 Other — 0.5 822.3 805.7 Less: unamortized debt issuance costs (3.7 ) (4.7 ) 818.6 801.0 Leasing – Recourse: Capital lease obligations, net of unamortized debt issuance costs of $0.1 and $0.1 32.0 35.7 Total recourse debt 850.6 836.7 Leasing – Non-recourse: Wholly-owned subsidiaries: 2006 secured railcar equipment notes 194.2 204.1 2009 secured railcar equipment notes 172.5 179.2 2010 secured railcar equipment notes 280.6 296.2 TILC warehouse facility 204.1 264.3 851.4 943.8 Less: unamortized debt issuance costs (11.4 ) (15.1 ) 840.0 928.7 Partially-owned subsidiaries: TRL 2012 secured railcar equipment notes 425.5 449.1 TRIP Master Funding secured railcar equipment notes 955.5 997.8 1,381.0 1,446.9 Less: unamortized debt issuance costs (15.0 ) (16.9 ) 1,366.0 1,430.0 Total non–recourse debt 2,206.0 2,358.7 Total debt $ 3,056.6 $ 3,195.4 |
Total interest expense recognized on the Convertible Subordinated Notes | Total interest expense recognized on the Convertible Subordinated Notes for the years ended December 31, 2016 , 2015 , and 2014 , is as follows: Year Ended December 31, 2016 2015 2014 (in millions) Coupon rate interest $ 17.4 $ 17.4 $ 17.4 Amortized debt discount 17.1 15.7 14.5 $ 34.5 $ 33.1 $ 31.9 |
Remaining principal payments under existing debt agreements | The remaining principal payments under existing debt agreements as of December 31, 2016 are as follows: 2017 2018 2019 2020 2021 Thereafter (in millions) Recourse: Corporate $ — $ — $ — $ — $ — $ 849.4 Leasing – capital lease obligations (Note 6) 3.6 28.5 — — — — Non-recourse – leasing (Note 6): 2006 secured railcar equipment notes 35.9 25.3 28.0 29.8 29.2 46.0 2009 secured railcar equipment notes 6.3 6.4 11.2 6.6 13.4 128.6 2010 secured railcar equipment notes 13.6 10.0 7.6 14.2 20.1 215.1 TILC warehouse facility 8.2 8.2 2.1 — — — Facility termination payments - TILC warehouse facility — — 185.6 — — — TRL 2012 secured railcar equipment notes 22.7 22.9 21.9 19.3 19.9 318.8 TRIP Master Funding secured railcar equipment notes 28.8 41.5 49.5 48.8 49.8 737.1 Total principal payments $ 119.1 $ 142.8 $ 305.9 $ 118.7 $ 132.4 $ 2,295.0 |
Other, Net (Tables)
Other, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Summary of other, net (income) expense | Other, net (income) expense consists of the following items: Year Ended December 31, 2016 2015 2014 (in millions) Foreign currency exchange transactions $ 2.4 $ (2.1 ) $ (1.2 ) (Gain) loss on equity investments (0.1 ) 0.1 (0.8 ) Other (3.4 ) (3.6 ) (2.6 ) Other, net $ (1.1 ) $ (5.6 ) $ (4.6 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of the provision for income taxes | The components of the provision for income taxes are as follows: Year Ended December 31, 2016 2015 2014 (in millions) Current: Federal $ (130.3 ) $ 271.2 $ 322.7 State 3.3 19.6 19.4 Foreign 7.7 18.6 18.5 Total current (119.3 ) 309.4 360.6 Deferred: Federal 313.0 117.4 (4.0 ) State 8.1 (0.3 ) 1.2 Foreign 0.3 (0.5 ) (3.0 ) Total deferred 321.4 116.6 (5.8 ) Provision $ 202.1 $ 426.0 $ 354.8 |
Reconciliation between the statutory U.S. Federal income tax rate and the Company's effective income tax rate | 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: Year Ended December 31, 2016 2015 2014 Statutory rate 35.0 % 35.0 % 35.0 % State taxes 1.4 1.2 1.4 Domestic production activities deduction — (1.4 ) (2.0 ) Noncontrolling interest in partially-owned subsidiaries (1.3 ) (0.8 ) (1.1 ) Changes in valuation allowances and reserves 0.3 — 0.1 Other, net 0.3 — (0.1 ) Effective rate 35.7 % 34.0 % 33.3 % |
Components of deferred tax liabilities and assets | The components of deferred tax liabilities and assets are as follows: December 31, 2016 2015 (in millions) Deferred tax liabilities: Depreciation, depletion, and amortization $ 919.6 $ 711.6 Partially-owned subsidiaries basis difference 171.5 144.0 Convertible debt 137.4 125.2 Total deferred tax liabilities 1,228.5 980.8 Deferred tax assets: Workers compensation, pensions, and other benefits 46.7 73.7 Warranties and reserves 12.1 11.4 Equity items 52.6 52.4 Tax loss carryforwards and credits 24.9 25.7 Inventory 29.2 34.1 Accrued liabilities and other 6.5 8.3 Total deferred tax assets 172.0 205.6 Net deferred tax liabilities before valuation allowances 1,056.5 775.2 Valuation allowances 11.7 10.1 Net deferred tax liabilities before reserve for uncertain tax positions 1,068.2 785.3 Deferred tax assets included in reserve for uncertain tax positions (11.2 ) (50.5 ) Adjusted net deferred tax liabilities $ 1,057.0 $ 734.8 |
Change in unrecognized tax benefits | The change in unrecognized tax benefits for the years ended December 31, 2016 , 2015 , and 2014 was as follows: Year Ended December 31, 2016 2015 2014 (in millions) Beginning balance $ 65.2 $ 62.3 $ 55.0 Additions for tax positions related to the current year — 5.5 5.0 Additions for tax positions of prior years 1.0 — 2.5 Reductions for tax positions of prior years (26.6 ) (0.7 ) (0.1 ) Settlements (7.1 ) (1.9 ) — Expiration of statute of limitations (4.3 ) — (0.1 ) Ending balance $ 28.2 $ 65.2 $ 62.3 |
Employee Retirement Plans (Tabl
Employee Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Actuarial assumptions | Actuarial assumptions Year Ended December 31, 2016 2015 2014 Assumptions used to determine benefit obligations at the annual measurement date were: Obligation discount rate 4.34% 4.79% 4.33% Compensation increase rate 4.00% 4.00% 4.00% Assumptions used to determine net periodic benefit costs were: Obligation discount rate 4.79% 4.33% 5.22% Long-term rate of return on plan assets 6.50% 7.00% 7.75% Compensation increase rate 4.00% 4.00% 4.00% |
Components of net retirement cost | Components of net retirement cost Year Ended December 31, 2016 2015 2014 (in millions) Expense Components Service cost $ 0.4 $ 0.5 $ 0.5 Interest 20.8 20.0 20.2 Expected return on plan assets (27.2 ) (30.5 ) (31.0 ) Amortization of actuarial loss 5.1 5.0 2.1 Defined benefit expense (0.9 ) (5.0 ) (8.2 ) Profit sharing 15.2 18.7 17.4 Multiemployer plan 2.3 2.4 0.8 Net expense $ 16.6 $ 16.1 $ 10.0 |
Obligations and funded status | Obligations and funded status Year Ended December 31, 2016 2015 (in millions) Accumulated Benefit Obligations $ 459.6 $ 445.3 Projected Benefit Obligations: Beginning of year $ 445.3 $ 473.9 Service cost 0.4 0.5 Interest 20.8 20.0 Benefits paid (18.1 ) (17.3 ) Actuarial (gain)/loss 11.2 (31.8 ) End of year $ 459.6 $ 445.3 Plans' Assets: Beginning of year $ 422.8 $ 434.5 Actual return on assets 33.1 (10.6 ) Employer contributions 4.7 16.2 Benefits paid (18.1 ) (17.3 ) End of year $ 442.5 $ 422.8 Consolidated Balance Sheet Components: Other assets $ 5.1 $ 3.5 Accrued liabilities (22.2 ) (26.0 ) Net funded status $ (17.1 ) $ (22.5 ) Percent of projected benefit obligations funded 96.3 % 94.9 % |
Amounts recognized in other comprehensive income (loss) | Amounts recognized in other comprehensive income (loss) Year Ended December 31, 2016 2015 2014 (in millions) Actuarial loss $ (5.3 ) $ (9.4 ) $ (71.9 ) Amortization of actuarial loss 5.1 5.0 2.1 Curtailment — — 0.1 Total before income taxes (0.2 ) (4.4 ) (69.7 ) Income tax expense (benefit) (0.1 ) (1.6 ) (25.9 ) Net amount recognized in other comprehensive loss $ (0.1 ) $ (2.8 ) $ (43.8 ) |
Estimated fair value of plan assets and target asset allocations | The target and actual allocations of the plans' assets at December 31, 2016 are as follows: Target December 31, Cash and cash equivalents 1 % Liability hedging portfolio 50% 46 % Growth portfolio 50% 53 % Total 100 % The estimated fair value of the plans' assets at December 31, 2016 and 2015 , indicating input levels used to determine fair value are as follows: Fair Value Measurement as of December 31, 2016 (in millions) Level 1 Level 2 Level 3 Total Temporary cash investments $ 5.9 $ — $ — $ 5.9 Debt common trust funds — 277.2 — 277.2 Equity common trust funds — 159.4 — 159.4 $ 5.9 $ 436.6 $ — $ 442.5 Fair Value Measurement as of December 31, 2015 (in millions) Level 1 Level 2 Level 3 Total Temporary cash investments $ 1.8 $ — $ — $ 1.8 Debt common trust funds — 273.9 — 273.9 Equity common trust funds — 147.1 — 147.1 $ 1.8 $ 421.0 $ — $ 422.8 |
Details of the multiemployer plan | Our participation in the multiemployer plan for the year ended December 31, 2016 is outlined in the table below. The Pension Protection Act ("PPA") zone status at December 31, 2016 and 2015 is as of the plan years ended December 31, 2015 and 2014, respectively, and is obtained from the multiemployer plan's regulatory filings available in the public domain and certified by the plan's actuary. Among other factors, plans in the yellow zone are less than 80% funded while plans in the red zone are less than 65% funded. Federal law requires that plans classified in the yellow or red zones adopt a funding improvement plan in order to improve the financial health of the plan. The plan utilized an amortization extension and the funding relief provided under the Internal Revenue Code and under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act in determining the zone status. The Company's contributions to the multiemployer plan were less than 5% of total contributions to the plan. The last column in the table lists the expiration date of the collective bargaining agreement to which the plan is subject. PPA Zone Status Contributions for Year Ended December 31, Pension Fund Employer Identification Number 2016 2015 Financial improvement plan status 2016 2015 2014 Surcharge imposed Expiration date of collective bargaining agreement (in millions) Boilermaker-Blacksmith National Pension Trust 48-6168020 Yellow Yellow Implemented $ 2.3 $ 2.5 $ 0.6 No July 3, 2019 |
Benefit payments for defined benefit plans expected to be paid during the next ten years | Benefit payments for the Company's defined benefit plans expected to be paid during the next ten years are as follows: Year Ending December 31, (in millions) 2017 $ 20.4 2018 21.5 2019 23.4 2020 24.4 2021 25.3 2022-2026 138.6 |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive loss | Changes in accumulated other comprehensive loss for the twelve months ended December 31, 2016 , 2015 , and 2014 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, 2013 $ (16.5 ) $ (18.7 ) $ (43.0 ) $ (78.2 ) Other comprehensive loss, net of tax, before reclassifications (2.0 ) (1.2 ) (45.1 ) (48.3 ) Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $8.4, $0.8, and $9.2 — 16.0 1.3 17.3 Less: noncontrolling interest — (3.0 ) — (3.0 ) Other comprehensive income (loss) (2.0 ) 11.8 (43.8 ) (34.0 ) Transfer of interests in partially-owned leasing subsidiaries — 0.3 — 0.3 Balances at December 31, 2014 (18.5 ) (6.6 ) (86.8 ) (111.9 ) Other comprehensive loss, net of tax, before reclassifications (6.0 ) (0.7 ) (6.0 ) (12.7 ) Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $3.4, $1.8, and $5.2 — 9.0 3.2 12.2 Less: noncontrolling interest — (3.0 ) — (3.0 ) Other comprehensive income (loss) (6.0 ) 5.3 (2.8 ) (3.5 ) Balances at December 31, 2015 (24.5 ) (1.3 ) (89.6 ) (115.4 ) Other comprehensive income (loss), net of tax, before reclassifications 0.8 (0.3 ) (3.3 ) (2.8 ) Amounts reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $0.7, $1.9, and $2.6 — 4.6 3.2 7.8 Less: noncontrolling interest — (3.1 ) — (3.1 ) Other comprehensive income (loss) 0.8 1.2 (0.1 ) 1.9 Balances at December 31, 2016 $ (23.7 ) $ (0.1 ) $ (89.7 ) $ (113.5 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Terms (Years) Aggregate Intrinsic Value (in millions) Options outstanding at December 31, 2015 60,793 $ 8.12 2.9 $1.0 Granted — — Exercised — — Cancelled — — Options outstanding at December 31, 2016 60,793 $ 8.12 1.9 $1.2 |
Schedule of restricted stock activity | Number of Restricted Share Awards Weighted Average Grant-Date Fair Value per Award Restricted share awards outstanding at December 31, 2015 6,798,175 $ 23.76 Granted 2,969,439 19.06 Vested (2,746,507 ) 21.93 Forfeited (272,024 ) 25.90 Restricted share awards outstanding at December 31, 2016 6,749,083 $ 22.35 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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. Year Ended (in millions, except per share amounts) Income (Loss) Average Shares EPS Net income attributable to Trinity Industries, Inc. $ 343.6 Unvested restricted share participation (9.4 ) Net income attributable to Trinity Industries, Inc. – basic 334.2 148.4 $ 2.25 Effect of dilutive securities: Stock options — — Convertible subordinated notes — 0.2 Net income attributable to Trinity Industries, Inc. – diluted $ 334.2 148.6 $ 2.25 Year Ended (in millions, except per share amounts) Income (Loss) Average Shares EPS Net income attributable to Trinity Industries, Inc. $ 796.5 Unvested restricted share participation (24.1 ) Net income attributable to Trinity Industries, Inc. – basic 772.4 150.2 $ 5.14 Effect of dilutive securities: Stock options — — Convertible subordinated notes 0.3 2.0 Net income attributable to Trinity Industries, Inc. – diluted $ 772.7 152.2 $ 5.08 Year Ended (in millions, except per share amounts) Income (Loss) Average Shares EPS Net income attributable to Trinity Industries, Inc. $ 678.2 Unvested restricted share participation (22.1 ) Net income attributable to Trinity Industries, Inc. – basic 656.1 151.0 $ 4.35 Effect of dilutive securities: Stock options — 0.1 Convertible subordinated notes 0.7 5.6 Net income attributable to Trinity Industries, Inc. – diluted $ 656.8 156.7 $ 4.19 |
Financial Statements for Guar47
Financial Statements for Guarantors of the Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Financial Statements for Guarantors of the Senior Notes [Abstract] | |
Statements of Operations and Comprehensive Income | Statement of Operations and Comprehensive Income Year Ended December 31, 2016 Parent Combined Combined Eliminations Consolidated (in millions) Revenues $ — $ 2,880.8 $ 2,475.3 $ (767.8 ) $ 4,588.3 Cost of revenues (1.3 ) 2,331.5 1,921.7 (795.8 ) 3,456.1 Selling, engineering, and administrative expenses 125.3 121.8 160.3 — 407.4 Gains on dispositions on property (0.5 ) 11.1 6.8 — 17.4 124.5 2,442.2 2,075.2 (795.8 ) 3,846.1 Operating profit (loss) (124.5 ) 438.6 400.1 28.0 742.2 Other (income) expense (128.8 ) 67.4 236.8 — 175.4 Equity in earnings of subsidiaries, net of taxes 387.5 91.8 — (479.3 ) — Income before income taxes 391.8 463.0 163.3 (451.3 ) 566.8 Provision (benefit) for income taxes 48.2 154.3 56.8 (57.2 ) 202.1 Net income 343.6 308.7 106.5 (394.1 ) 364.7 Net income attributable to noncontrolling interest — — — 21.1 21.1 Net income attributable to controlling interest $ 343.6 $ 308.7 $ 106.5 $ (415.2 ) $ 343.6 Net income $ 343.6 $ 308.7 $ 106.5 $ (394.1 ) $ 364.7 Other comprehensive income (loss) 0.6 (0.4 ) 4.8 — 5.0 Comprehensive income 344.2 308.3 111.3 (394.1 ) 369.7 Comprehensive income attributable to noncontrolling interest — — — 24.2 24.2 Comprehensive income attributable to controlling interest $ 344.2 $ 308.3 $ 111.3 $ (418.3 ) $ 345.5 Statement of Operations and Comprehensive Income Year Ended December 31, 2015 Parent Combined Combined Eliminations Consolidated (in millions) Revenues $ — $ 4,668.8 $ 2,642.6 $ (918.7 ) $ 6,392.7 Cost of revenues (2.0 ) 3,594.9 2,005.3 (942.0 ) 4,656.2 Selling, engineering, and administrative expenses 147.0 153.3 176.1 — 476.4 Gains on dispositions on property 2.0 86.0 90.8 — 178.8 143.0 3,662.2 2,090.6 (942.0 ) 4,953.8 Operating profit (loss) (143.0 ) 1,006.6 552.0 23.3 1,438.9 Other (income) expense (118.7 ) 68.6 237.0 — 186.9 Equity in earnings of subsidiaries, net of taxes 920.0 217.4 — (1,137.4 ) — Income before income taxes 895.7 1,155.4 315.0 (1,114.1 ) 1,252.0 Provision (benefit) for income taxes 99.2 353.2 12.5 (38.9 ) 426.0 Net income 796.5 802.2 302.5 (1,075.2 ) 826.0 Net income attributable to noncontrolling interest — — — 29.5 29.5 Net income attributable to controlling interest $ 796.5 $ 802.2 $ 302.5 $ (1,104.7 ) $ 796.5 Net income $ 796.5 $ 802.2 $ 302.5 $ (1,075.2 ) $ 826.0 Other comprehensive income (loss) (6.0 ) — 5.5 — (0.5 ) Comprehensive income 790.5 802.2 308.0 (1,075.2 ) 825.5 Comprehensive income attributable to noncontrolling interest — — — 32.5 32.5 Comprehensive income attributable to controlling interest $ 790.5 $ 802.2 $ 308.0 $ (1,107.7 ) $ 793.0 Statement of Operations and Comprehensive Income Year Ended December 31, 2014 Parent Combined Combined Eliminations Consolidated (in millions) Revenues $ — $ 4,290.3 $ 2,700.2 $ (820.5 ) $ 6,170.0 Cost of revenues 2.3 3,345.5 2,098.5 (826.5 ) 4,619.8 Selling, engineering, and administrative expenses 115.6 124.9 163.1 — 403.6 Gains on dispositions on property (1.4 ) 41.3 64.5 — 104.4 119.3 3,429.1 2,197.1 (826.5 ) 4,919.0 Operating profit (loss) (119.3 ) 861.2 503.1 6.0 1,251.0 Other (income) expense (60.3 ) 57.1 190.1 — 186.9 Equity in earnings of subsidiaries, net of taxes 741.7 191.8 — (933.5 ) — Income before income taxes 682.7 995.9 313.0 (927.5 ) 1,064.1 Provision (benefit) for income taxes 4.5 297.2 50.6 2.5 354.8 Net income 678.2 698.7 262.4 (930.0 ) 709.3 Net income attributable to noncontrolling interest — — — 31.1 31.1 Net income attributable to controlling interest $ 678.2 $ 698.7 $ 262.4 $ (961.1 ) $ 678.2 Net income $ 678.2 $ 698.7 $ 262.4 $ (930.0 ) $ 709.3 Other comprehensive income (loss) (33.9 ) (8.5 ) 11.4 — (31.0 ) Comprehensive income 644.3 690.2 273.8 (930.0 ) 678.3 Comprehensive income attributable to noncontrolling interest — — — 34.1 34.1 Comprehensive income attributable to controlling interest $ 644.3 $ 690.2 $ 273.8 $ (964.1 ) $ 644.2 |
Balance Sheets | Balance Sheet December 31, 2016 Parent Combined Combined Eliminations Consolidated (in millions) Assets: Cash and cash equivalents $ 537.9 $ 5.2 $ 51.3 $ (31.0 ) $ 563.4 Short-term marketable securities 234.7 — — — 234.7 Receivables, net of allowance 1.1 201.1 176.5 — 378.7 Income tax receivable 99.9 — 2.2 — 102.1 Inventory — 409.2 266.5 (9.9 ) 665.8 Property, plant, and equipment, net 48.8 2,329.6 4,047.6 (459.2 ) 5,966.8 Investments in and advances to subsidiaries 4,862.4 2,441.1 470.0 (7,773.5 ) — Restricted cash — — 147.1 31.1 178.2 Goodwill and other assets 150.8 584.9 301.2 (1.3 ) 1,035.6 $ 5,935.6 $ 5,971.1 $ 5,462.4 $ (8,243.8 ) $ 9,125.3 Liabilities: Accounts payable $ 5.7 $ 45.2 $ 105.7 $ (0.5 ) $ 156.1 Accrued liabilities 200.0 84.2 143.2 (1.3 ) 426.1 Debt 818.7 32.0 2,205.9 — 3,056.6 Deferred income — 21.9 1.6 — 23.5 Deferred income taxes 78.6 984.9 9.1 0.3 1,072.9 Advances from subsidiaries 458.2 11.5 — (469.7 ) — Other liabilities 63.3 13.5 2.2 — 79.0 Total stockholders' equity 4,311.1 4,777.9 2,994.7 (7,772.6 ) 4,311.1 $ 5,935.6 $ 5,971.1 $ 5,462.4 $ (8,243.8 ) $ 9,125.3 Balance Sheet December 31, 2015 Parent Combined Combined Eliminations Consolidated (in millions) Assets: Cash and cash equivalents $ 768.3 $ 1.7 $ 51.1 $ (35.1 ) $ 786.0 Short-term marketable securities 84.9 — — — 84.9 Receivables, net of allowance 0.1 196.3 173.5 — 369.9 Income tax receivable 94.9 — — — 94.9 Inventory — 634.1 325.4 (16.4 ) 943.1 Property, plant, and equipment, net 37.7 1,597.0 4,204.3 (491.0 ) 5,348.0 Investments in and advances to subsidiaries 6,262.9 3,633.1 908.5 (10,804.5 ) — Restricted cash — 0.2 160.5 35.1 195.8 Goodwill and other assets 178.8 579.8 304.7 — 1,063.3 $ 7,427.6 $ 6,642.2 $ 6,128.0 $ (11,311.9 ) $ 8,885.9 Liabilities: Accounts payable $ 9.9 $ 62.9 $ 144.3 $ (0.3 ) $ 216.8 Accrued liabilities 224.9 137.3 168.5 (1.1 ) 529.6 Debt 800.6 35.6 2,359.2 — 3,195.4 Deferred income — 25.4 1.7 — 27.1 Deferred income taxes 31.2 711.3 9.4 0.3 752.2 Advances from subsidiaries 2,212.2 — — (2,212.2 ) — Other liabilities 100.1 13.6 2.4 — 116.1 Total stockholders' equity 4,048.7 5,656.1 3,442.5 (9,098.6 ) 4,048.7 $ 7,427.6 $ 6,642.2 $ 6,128.0 $ (11,311.9 ) $ 8,885.9 |
Statements of Cash Flows | Statement of Cash Flows Year Ended December 31, 2016 Parent Combined Combined Eliminations Consolidated (in millions) Operating activities: Net income $ 343.6 $ 308.7 $ 106.5 $ (394.1 ) $ 364.7 Equity in earnings of subsidiaries, net of taxes (387.5 ) (91.8 ) — 479.3 — Other 64.5 482.1 212.3 (33.4 ) 725.5 Net cash provided (required) by operating activities - continuing 20.6 699.0 318.8 51.8 1,090.2 Net cash provided by operating activities - discontinued — — — — — Net cash provided (required) by operating activities 20.6 699.0 318.8 51.8 1,090.2 Investing activities: (Increase) decrease in short-term marketable securities (149.8 ) — — — (149.8 ) Proceeds from railcar lease fleet sales owned more than one year — 27.3 10.4 — 37.7 Proceeds from disposition of property and other assets — 4.1 11.9 — 16.0 Capital expenditures – leasing — (798.7 ) (0.4 ) — (799.1 ) Capital expenditures – manufacturing and other (18.0 ) (8.6 ) (107.7 ) — (134.3 ) Acquisitions, net of cash acquired — — — — — (Increase) decrease in investment in partially-owned subsidiaries — 17.1 — (17.1 ) — Divestitures — — — — — Other — 0.8 6.0 — 6.8 Net cash provided (required) by investing activities - continuing (167.8 ) (758.0 ) (79.8 ) (17.1 ) (1,022.7 ) Net cash provided by investing activities - discontinued — — — — — Net cash provided (required) by investing activities (167.8 ) (758.0 ) (79.8 ) (17.1 ) (1,022.7 ) Financing activities: Proceeds from issuance of common stock, net — — — — — Excess tax benefits from stock-based compensation 1.0 — — — 1.0 Payments to retire debt — (3.6 ) (158.9 ) — (162.5 ) Proceeds from issuance of debt — — — — — (Increase) decrease in restricted cash — 0.2 13.4 4.0 17.6 Shares repurchased (34.7 ) — — — (34.7 ) Dividends paid to common shareholders (66.7 ) — — — (66.7 ) Purchase of shares to satisfy employee tax on vested stock (16.3 ) — — — (16.3 ) Contributions from noncontrolling interest — — — — — Contributions from controlling interest in partially-owned leasing subsidiaries — — — — — Distributions to noncontrolling interest — — (26.4 ) — (26.4 ) Distributions to controlling interest in partially-owned leasing subsidiaries — — (17.1 ) 17.1 — Change in intercompany financing between entities 33.5 65.9 (47.7 ) (51.7 ) — Other — — (2.1 ) — (2.1 ) Net cash provided (required) by financing activities - continuing (83.2 ) 62.5 (238.8 ) (30.6 ) (290.1 ) Net cash provided (required) by financing activities - discontinued — — — — — Net cash provided (required) by financing activities (83.2 ) 62.5 (238.8 ) (30.6 ) (290.1 ) Net increase (decrease) in cash and cash equivalents (230.4 ) 3.5 0.2 4.1 (222.6 ) Cash and cash equivalents at beginning of period 768.3 1.7 51.1 (35.1 ) 786.0 Cash and cash equivalents at end of period $ 537.9 $ 5.2 $ 51.3 $ (31.0 ) $ 563.4 Statement of Cash Flows Year Ended December 31, 2015 Parent Combined Combined Eliminations Consolidated (in millions) Operating activities: Net income $ 796.5 $ 802.2 $ 302.5 $ (1,075.2 ) $ 826.0 Equity in earnings of subsidiaries, net of taxes (920.0 ) (217.4 ) — 1,137.4 — Other 57.8 (33.1 ) 146.4 (57.4 ) 113.7 Net cash provided (required) by operating activities - continuing (65.7 ) 551.7 448.9 4.8 939.7 Net cash provided by operating activities - discontinued — — — — — Net cash provided (required) by operating activities (65.7 ) 551.7 448.9 4.8 939.7 Investing activities: (Increase) decrease in short-term marketable securities (9.9 ) — — — (9.9 ) Proceeds from railcar lease fleet sales owned more than one year — 290.6 267.2 (43.2 ) 514.6 Proceeds from disposition of property and other assets — 1.9 6.3 — 8.2 Capital expenditures – leasing — (821.6 ) (55.4 ) 43.2 (833.8 ) Capital expenditures – manufacturing and other (14.5 ) (39.1 ) (142.4 ) — (196.0 ) Acquisitions, net of cash acquired — — (46.2 ) — (46.2 ) (Increase) decrease in investment in partially-owned subsidiaries — 24.8 — (24.8 ) — Divestitures — — 51.3 — 51.3 Other — 0.2 0.3 — 0.5 Net cash provided (required) by investing activities - continuing (24.4 ) (543.2 ) 81.1 (24.8 ) (511.3 ) Net cash provided by investing activities - discontinued — — — — — Net cash provided (required) by investing activities (24.4 ) (543.2 ) 81.1 (24.8 ) (511.3 ) Financing activities: Proceeds from issuance of common stock, net 0.3 — — — 0.3 Excess tax benefits from stock-based compensation 13.3 — — — 13.3 Payments to retire debt — (3.2 ) (584.0 ) — (587.2 ) Proceeds from issuance of debt (1.5 ) — 243.9 — 242.4 (Increase) decrease in restricted cash — (0.2 ) 43.3 5.2 48.3 Shares repurchased (115.0 ) — — — (115.0 ) Dividends paid to common shareholders (64.9 ) — — — (64.9 ) Purchase of shares to satisfy employee tax on vested stock (27.5 ) — — — (27.5 ) Contributions from noncontrolling interest — — — — — Contributions from controlling interest in partially-owned leasing subsidiaries — — — — — Distributions to noncontrolling interest — — (39.2 ) — (39.2 ) Distributions to controlling interest in partially-owned leasing subsidiaries — — (24.8 ) 24.8 — Change in intercompany financing between entities 226.0 (14.5 ) (206.7 ) (4.8 ) — Other — — (0.8 ) — (0.8 ) Net cash provided (required) by financing activities - continuing 30.7 (17.9 ) (568.3 ) 25.2 (530.3 ) Net cash provided (required) by financing activities - discontinued — — — — — Net cash provided (required) by financing activities 30.7 (17.9 ) (568.3 ) 25.2 (530.3 ) Net increase (decrease) in cash and cash equivalents (59.4 ) (9.4 ) (38.3 ) 5.2 (101.9 ) 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 $ 768.3 $ 1.7 $ 51.1 $ (35.1 ) $ 786.0 Statement of Cash Flows Year Ended December 31, 2014 Parent Combined Combined Eliminations Consolidated (in millions) Operating activities: Net income $ 678.2 $ 698.7 $ 262.4 $ (930.0 ) $ 709.3 Equity in earnings of subsidiaries, net of taxes (741.7 ) (191.8 ) — 933.5 — Other (26.5 ) (99.0 ) 240.1 (5.7 ) 108.9 Net cash provided (required) by operating activities - continuing (90.0 ) 407.9 502.5 (2.2 ) 818.2 Net cash provided by operating activities - discontinued — — 1.0 — 1.0 Net cash provided (required) by operating activities (90.0 ) 407.9 503.5 (2.2 ) 819.2 Investing activities: (Increase) decrease in short-term marketable securities 74.7 — — — 74.7 Proceeds from railcar lease fleet sales owned more than one year — 549.2 140.3 (423.7 ) 265.8 Proceeds from disposition of property and other assets 0.3 — 22.7 — 23.0 Capital expenditures – leasing — (222.8 ) (446.2 ) 423.7 (245.3 ) Capital expenditures – manufacturing and other (8.3 ) (58.3 ) (152.7 ) — (219.3 ) Acquisitions, net of cash acquired — (595.6 ) (118.8 ) — (714.4 ) (Increase) decrease in investment in partially-owned subsidiaries — (4.5 ) — 4.5 — Divestitures — — — — — Other 0.9 (0.8 ) 0.7 — 0.8 Net cash provided (required) by investing activities - continuing 67.6 (332.8 ) (554.0 ) 4.5 (814.7 ) Net cash provided by investing activities - discontinued — — — — — Net cash provided (required) by investing activities 67.6 (332.8 ) (554.0 ) 4.5 (814.7 ) Financing activities: Proceeds from issuance of common stock, net 0.6 — — — 0.6 Excess tax benefits from stock-based compensation 24.4 — — — 24.4 Payments to retire debt (0.5 ) (3.1 ) (183.0 ) — (186.6 ) Proceeds from issuance of debt 395.7 — 331.6 — 727.3 (Increase) decrease in restricted cash — — 13.9 (12.9 ) 1.0 Shares repurchased (36.5 ) — — — (36.5 ) Dividends paid to common shareholders (54.4 ) — — — (54.4 ) Purchase of shares to satisfy employee tax on vested stock (38.3 ) — — — (38.3 ) Contributions from noncontrolling interest — — 49.6 — 49.6 Contributions from controlling interest in partially-owned leasing subsidiaries — — 4.5 (4.5 ) — Distributions to noncontrolling interest — — (28.2 ) — (28.2 ) Distributions to controlling interest in partially-owned leasing subsidiaries — — — — — Change in intercompany financing between entities 149.4 (62.3 ) (89.3 ) 2.2 — Other — (0.7 ) (1.8 ) — (2.5 ) Net cash provided (required) by financing activities - continuing 440.4 (66.1 ) 97.3 (15.2 ) 456.4 Net cash provided (required) by financing activities - discontinued — — (1.5 ) — (1.5 ) Net cash provided (required) by financing activities 440.4 (66.1 ) 95.8 (15.2 ) 454.9 Net increase (decrease) in cash and cash equivalents 418.0 9.0 45.3 (12.9 ) 459.4 Cash and cash equivalents at beginning of period 409.7 2.1 44.1 (27.4 ) 428.5 Cash and cash equivalents at end of period $ 827.7 $ 11.1 $ 89.4 $ (40.3 ) $ 887.9 |
Selected Quarterly Financial 48
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | Three Months Ended March 31, June 30, September 30, December 31, (in millions except per share data) Revenues: Manufacturing $ 1,010.1 $ 888.8 $ 938.5 $ 926.0 Leasing 177.8 296.1 173.2 177.8 1,187.9 1,184.9 1,111.7 1,103.8 Operating costs: Costs of revenues: Manufacturing 793.9 719.1 745.4 761.2 Leasing 96.0 178.6 81.9 80.0 889.9 897.7 827.3 841.2 Selling, engineering, and administrative expenses 96.5 106.7 102.3 101.9 Gains on disposition of property 1.9 11.1 1.5 2.9 Operating profit 203.4 191.6 183.6 163.6 Net income 102.1 98.8 89.6 74.2 Net income attributable to Trinity Industries, Inc. 97.2 94.6 84.2 67.6 Net income attributable to Trinity Industries, Inc. per common share: Basic $ 0.64 $ 0.62 $ 0.55 $ 0.44 Diluted $ 0.64 $ 0.62 $ 0.55 $ 0.44 Three Months Ended March 31, June 30, September 30, December 31, (in millions except per share data) Revenues: Manufacturing $ 1,382.5 $ 1,445.4 $ 1,295.6 $ 1,177.6 Leasing 244.2 231.4 246.6 369.4 1,626.7 1,676.8 1,542.2 1,547.0 Operating costs: Costs of revenues: Manufacturing 1,084.5 1,101.8 976.0 881.6 Leasing 126.6 117.8 133.4 234.5 1,211.1 1,219.6 1,109.4 1,116.1 Selling, engineering, and administrative expenses 98.3 114.4 126.6 137.1 Gains on disposition of property 15.8 40.1 58.7 64.2 Operating profit 333.1 382.9 364.9 358.0 Net income 189.0 220.8 212.2 204.0 Net income attributable to Trinity Industries, Inc. 180.2 212.0 204.3 200.0 Net income attributable to Trinity Industries, Inc. per common share: Basic $ 1.15 $ 1.36 $ 1.32 $ 1.30 Diluted $ 1.13 $ 1.33 $ 1.31 $ 1.30 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2016customer | |
Concentration Risk [Line Items] | |
Concentration risk, number of customers | 1 |
Concentration risk, percentage | 21.00% |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Details 3) | 12 Months Ended |
Dec. 31, 2016 | |
Equipment on lease | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 35 years |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 30 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Machinery and other | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Machinery and other | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Technology equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Technology equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Details 4) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||
Net book value of intangible assets | $ 79,700,000 | $ 86,900,000 |
Goodwill impairment charges | 0 | $ 0 |
Finite-Lived Intangible Assets [Line Items] | ||
Net book value of finite-lived intangible assets | $ 43,100,000 | |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with defined useful lives, amortization period | 1 year | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with defined useful lives, amortization period | 20 years |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Details 5) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Long-lived assets impairment charge | $ 0 | $ 0 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Details 6) | 12 Months Ended |
Dec. 31, 2016 | |
Minimum | |
Product Warranty Liability [Line Items] | |
Product warranty period against materials and manufacturing defects | 1 year |
Maximum | |
Product Warranty Liability [Line Items] | |
Product warranty period against materials and manufacturing defects | 5 years |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Details) - USD ($) | May 05, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 31, 2015 | Apr. 30, 2015 |
Class of Stock [Line Items] | ||||||
Stock split, reclassification from APIC to Common Stock | $ 0 | |||||
Authorized amount from Board of Directors for share repurchase | $ 250,000,000 | |||||
Cost of shares repurchased | $ 34,700,000 | $ 115,000,000 | 31,500,000 | |||
Number of shares repurchased (in shares) | 2,070,600 | 3,947,320 | ||||
Common stock, shares authorized | 400,000,000 | 400,000,000 | 400,000,000 | 200,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 1 | |||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Stock split, conversion ratio | 2 | |||||
Stock dividend | 100.00% | |||||
Stock split, reclassification from APIC to Common Stock | $ 78,000,000 |
Acquisitions and Divestitures55
Acquisitions and Divestitures (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Divestitures: | ||||
Proceeds | $ 0 | $ 51.3 | $ 0 | |
Gain recognized | 0 | 0 | ||
Goodwill charged off | 0 | 17.3 | 0 | |
Acquisitions: | ||||
Purchase price | 0 | 46.2 | 720.9 | |
Net cash paid | 0 | 46.2 | 714.4 | |
Goodwill recorded | 0 | 0 | 495 | |
Construction Products Group | ||||
Acquisitions: | ||||
Purchase price | $ 0 | 46.2 | $ 6.1 | |
Construction Products Group | Texas, Mississippi, and Louisiana | Galvanizing Business | ||||
Divestitures: | ||||
Gain recognized | $ 8.3 | $ 8.3 |
Acquisitions and Divestitures56
Acquisitions and Divestitures (Details 2) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Goodwill | $ 754.1 | $ 753.8 |
Level 3 | 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 |
Acquisitions and Divestitures57
Acquisitions and Divestitures (Details 3) - Meyer - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets acquired, other than goodwill | $ 75 | |
Trademarks/trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
December 31, 2015 | 34.1 | |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
December 31, 2015 | 35.3 | |
Weighted average useful life | 10 years 6 months | |
Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
December 31, 2015 | $ 5.6 | |
Weighted average useful life | 5 years |
Acquisitions and Divestitures58
Acquisitions and Divestitures (Details 4) $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Business Combinations [Abstract] | |
Revenues | $ 187.4 |
Operating profit | $ 2.4 |
Acquisitions and Divestitures59
Acquisitions and Divestitures (Details 5) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Business Combinations [Abstract] | ||
Revenues | $ 6,369.8 | $ 4,830.8 |
Operating profit | $ 1,274.4 | $ 834.1 |
Acquisitions and Divestitures60
Acquisitions and Divestitures (Details 6) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||
Purchase price | $ 0 | $ 46.2 | $ 720.9 |
Construction Products Group | |||
Business Acquisition [Line Items] | |||
Purchase price | 0 | 46.2 | 6.1 |
Energy Equipment Group | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 0 | $ 0 | $ 714.8 |
Acquisitions and Divestitures61
Acquisitions and Divestitures (Details Textual) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($)facility | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)acquisition | |
Business Acquisition [Line Items] | ||||
Gain recognized | $ 0 | $ 0 | ||
Meyer | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related transaction costs incurred | 8.7 | |||
Non-recurring additional state income tax expense | $ 1.5 | |||
Construction Products Group | ||||
Business Acquisition [Line Items] | ||||
Number of businesses acquired | acquisition | 1 | |||
Energy Equipment Group | ||||
Business Acquisition [Line Items] | ||||
Number of businesses acquired | acquisition | 3 | |||
Texas, Mississippi, and Louisiana | Galvanizing Business | Construction Products Group | ||||
Business Acquisition [Line Items] | ||||
Number of facilities sold | facility | 6 | |||
Gain recognized | $ 8.3 | $ 8.3 |
Fair Value Accounting (Details)
Fair Value Accounting (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fuel derivative instruments | ||
Liabilities: | ||
Liability | $ 0.3 | |
Fair value measurements, recurring | ||
Assets: | ||
Cash equivalents | 188.7 | $ 174 |
Restricted cash | 178.2 | 195.8 |
Equity instruments | 3.1 | |
Total assets | 370.3 | 369.8 |
Liabilities: | ||
Total liabilities | 0.9 | 2.4 |
Fair value measurements, recurring | Other assets | Fuel derivative instruments | ||
Assets: | ||
Derivative Asset | 0.3 | |
Fair value measurements, recurring | Accrued liabilities | Fuel derivative instruments | ||
Liabilities: | ||
Liability | 0.8 | |
Fair value measurements, recurring | Accrued liabilities | Partially-owned subsidiaries | Interest rate hedges | ||
Liabilities: | ||
Liability | 0.9 | 1.6 |
Fair value measurements, recurring | Level 1 | ||
Assets: | ||
Cash equivalents | 188.7 | 174 |
Restricted cash | 178.2 | 195.8 |
Equity instruments | 0 | |
Total assets | 366.9 | 369.8 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Fair value measurements, recurring | Level 1 | Other assets | Fuel derivative instruments | ||
Assets: | ||
Derivative Asset | 0 | |
Fair value measurements, recurring | Level 1 | Accrued liabilities | Fuel derivative instruments | ||
Liabilities: | ||
Liability | 0 | |
Fair value measurements, recurring | Level 1 | Accrued liabilities | Partially-owned subsidiaries | Interest rate hedges | ||
Liabilities: | ||
Liability | 0 | 0 |
Fair value measurements, recurring | Level 2 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Equity instruments | 3.1 | |
Total assets | 3.4 | 0 |
Liabilities: | ||
Total liabilities | 0.9 | 2.4 |
Fair value measurements, recurring | Level 2 | Other assets | Fuel derivative instruments | ||
Assets: | ||
Derivative Asset | 0.3 | |
Fair value measurements, recurring | Level 2 | Accrued liabilities | Fuel derivative instruments | ||
Liabilities: | ||
Liability | 0.8 | |
Fair value measurements, recurring | Level 2 | Accrued liabilities | Partially-owned subsidiaries | Interest rate hedges | ||
Liabilities: | ||
Liability | 0.9 | 1.6 |
Fair value measurements, recurring | Level 3 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Equity instruments | 0 | |
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Fair value measurements, recurring | Level 3 | Other assets | Fuel derivative instruments | ||
Assets: | ||
Derivative Asset | 0 | |
Fair value measurements, recurring | Level 3 | Accrued liabilities | Fuel derivative instruments | ||
Liabilities: | ||
Liability | 0 | |
Fair value measurements, recurring | Level 3 | Accrued liabilities | Partially-owned subsidiaries | Interest rate hedges | ||
Liabilities: | ||
Liability | $ 0 | $ 0 |
Fair Value Accounting (Details
Fair Value Accounting (Details 2) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Gross | $ 881.5 | $ 885.7 |
Less: unamortized discount | (27.1) | (44.2) |
Less: unamortized debt issuance costs | (3.8) | (4.8) |
Recourse, net of unamortized discount and unamortized debt issuance costs | 850.6 | 836.7 |
Non-recourse debt | 2,232.4 | 2,390.7 |
Less: unamortized debt issuance costs | (26.4) | (32) |
Non-recourse debt, net of unamortized debt issuance costs | 2,206 | 2,358.7 |
Total debt | 3,056.6 | 3,195.4 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including unamortized debt issuance costs, net of unamortized discount | 854.4 | 841.5 |
Less: unamortized debt issuance costs | (3.8) | (4.8) |
Recourse, net of unamortized discount and unamortized debt issuance costs | 850.6 | 836.7 |
Non-recourse debt | 2,232.4 | 2,390.7 |
Less: unamortized debt issuance costs | (26.4) | (32) |
Non-recourse debt, net of unamortized debt issuance costs | 2,206 | 2,358.7 |
Total debt | 3,056.6 | 3,195.4 |
Carrying Value | 2006 secured railcar equipment notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-recourse debt | 194.2 | 204.1 |
Carrying Value | 2009 secured railcar equipment notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-recourse debt | 172.5 | 179.2 |
Carrying Value | 2010 secured railcar equipment notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-recourse debt | 280.6 | 296.2 |
Carrying Value | TRL 2012 secured railcar equipment notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-recourse debt | 425.5 | 449.1 |
Carrying Value | TRIP Master Funding secured railcar equipment notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-recourse debt | 955.5 | 997.8 |
Carrying Value | Senior notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including unamortized debt issuance costs, net of unamortized discount | 399.6 | 399.6 |
Carrying Value | Convertible subordinated notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including unamortized debt issuance costs, net of unamortized discount | 422.7 | 405.6 |
Long-term Debt, Gross | 449.4 | 449.4 |
Less: unamortized discount | (26.7) | (43.8) |
Carrying Value | Capital lease obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including unamortized debt issuance costs, net of unamortized discount | 32.1 | 35.8 |
Carrying Value | Other | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including unamortized debt issuance costs, net of unamortized discount | 0 | 0.5 |
Carrying Value | Line of credit | TILC warehouse facility | Revolving credit facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-recourse debt | 204.1 | 264.3 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including unamortized debt issuance costs, net of unamortized discount | 993.9 | 941.4 |
Non-recourse debt | 2,236 | 2,480.3 |
Total debt | 3,229.9 | 3,421.7 |
Estimated Fair Value | 2006 secured railcar equipment notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-recourse debt | 201.5 | 218.2 |
Estimated Fair Value | 2009 secured railcar equipment notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-recourse debt | 189.9 | 207.2 |
Estimated Fair Value | 2010 secured railcar equipment notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-recourse debt | 284.3 | 314.2 |
Estimated Fair Value | TRL 2012 secured railcar equipment notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-recourse debt | 395.6 | 436.9 |
Estimated Fair Value | TRIP Master Funding secured railcar equipment notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-recourse debt | 960.6 | 1,039.5 |
Estimated Fair Value | Senior notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including unamortized debt issuance costs, net of unamortized discount | 386.3 | 370.3 |
Estimated Fair Value | Convertible subordinated notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Gross | 575.5 | 534.8 |
Estimated Fair Value | Capital lease obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including unamortized debt issuance costs, net of unamortized discount | 32.1 | 35.8 |
Estimated Fair Value | Other | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including unamortized debt issuance costs, net of unamortized discount | 0 | 0.5 |
Estimated Fair Value | Line of credit | TILC warehouse facility | Revolving credit facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-recourse debt | $ 204.1 | $ 264.3 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,103.8 | $ 1,111.7 | $ 1,184.9 | $ 1,187.9 | $ 1,547 | $ 1,542.2 | $ 1,676.8 | $ 1,626.7 | $ 4,588.3 | $ 6,392.7 | $ 6,170 |
Operating Profit (Loss) | 163.6 | $ 183.6 | $ 191.6 | $ 203.4 | 358 | $ 364.9 | $ 382.9 | $ 333.1 | 742.2 | 1,438.9 | 1,251 |
Assets | 9,125.3 | 8,885.9 | 9,125.3 | 8,885.9 | 8,695.3 | ||||||
Depreciation & Amortization | 283 | 266.4 | 244.6 | ||||||||
Capital Expenditures | 933.4 | 1,029.8 | 464.6 | ||||||||
Intersegment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,347.2 | 1,585.4 | 1,058 | ||||||||
Total | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 5,935.5 | 7,978.1 | 7,228 | ||||||||
Operating Profit (Loss) | 1,052.1 | 1,852 | 1,502.7 | ||||||||
Assets | 8,850.9 | 8,388.8 | 8,850.9 | 8,388.8 | 8,114.2 | ||||||
Depreciation & Amortization | 274.4 | 258.7 | 237.3 | ||||||||
Capital Expenditures | 915.4 | 1,015 | 455.7 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Profit (Loss) | (131) | (152.6) | (119) | ||||||||
Assets | 1,079.3 | 1,175.6 | 1,079.3 | 1,175.6 | 1,141.6 | ||||||
Depreciation & Amortization | 8.7 | 7.8 | 7.4 | ||||||||
Capital Expenditures | 18 | 14.8 | 8.9 | ||||||||
Rail Group | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,006.9 | 3,236.2 | 3,077.6 | ||||||||
Assets | 1,014.1 | 1,245.3 | 1,014.1 | 1,245.3 | 1,322.4 | ||||||
Depreciation & Amortization | 41.7 | 38.8 | 32.7 | ||||||||
Capital Expenditures | 29.2 | 84 | 98.3 | ||||||||
Rail Group | Intersegment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,070.4 | 1,225.6 | 739.2 | ||||||||
Rail Group | Total | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,077.3 | 4,461.8 | 3,816.8 | ||||||||
Operating Profit (Loss) | 459.9 | 931.6 | 724.1 | ||||||||
Construction Products Group | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 510.6 | 520.6 | 546.1 | ||||||||
Assets | 470.3 | 445.1 | 470.3 | 445.1 | 459.3 | ||||||
Depreciation & Amortization | 23.8 | 24.1 | 22.7 | ||||||||
Capital Expenditures | 49.9 | 28.1 | 37.1 | ||||||||
Construction Products Group | Intersegment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 12.6 | 12 | 5.6 | ||||||||
Construction Products Group | Total | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 523.2 | 532.6 | 551.7 | ||||||||
Operating Profit (Loss) | 72.6 | 54.5 | 65.4 | ||||||||
Inland Barge Group | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 403 | 652.9 | 638.5 | ||||||||
Assets | 120.8 | 157.7 | 120.8 | 157.7 | 177.1 | ||||||
Depreciation & Amortization | 8.4 | 10.5 | 9.3 | ||||||||
Capital Expenditures | 3.2 | 5.8 | 9.7 | ||||||||
Inland Barge Group | Intersegment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0.1 | 0 | 0 | ||||||||
Inland Barge Group | Total | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 403.1 | 652.9 | 638.5 | ||||||||
Operating Profit (Loss) | 45.3 | 117 | 114.4 | ||||||||
Energy Equipment Group | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 834.7 | 883.6 | 796 | ||||||||
Assets | 1,035.7 | 1,118.3 | 1,035.7 | 1,118.3 | 1,160 | ||||||
Depreciation & Amortization | 36.6 | 38.2 | 33 | ||||||||
Capital Expenditures | 25 | 53.5 | 56 | ||||||||
Energy Equipment Group | Intersegment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 178 | 230.1 | 196.3 | ||||||||
Energy Equipment Group | Total | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,012.7 | 1,113.7 | 992.3 | ||||||||
Operating Profit (Loss) | 133.1 | 150.9 | 108.1 | ||||||||
Railcar Leasing and Management Services Group | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 824.9 | 1,091.6 | 1,106.4 | ||||||||
Assets | 6,095.7 | 5,358.2 | 6,095.7 | 5,358.2 | 4,939.1 | ||||||
Depreciation & Amortization | 156.2 | 142.3 | 130 | ||||||||
Capital Expenditures | 799.1 | 833.8 | 245.3 | ||||||||
Railcar Leasing and Management Services Group | Intersegment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2.1 | 13.2 | 11.9 | ||||||||
Railcar Leasing and Management Services Group | Total | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 827 | 1,104.8 | 1,118.3 | ||||||||
Operating Profit (Loss) | 360.1 | 606.2 | 516.3 | ||||||||
Depreciation & Amortization | 156.2 | 142.3 | 130 | ||||||||
All Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 8.2 | 7.8 | 5.4 | ||||||||
Assets | 114.3 | 64.2 | 114.3 | 64.2 | 56.3 | ||||||
Depreciation & Amortization | 7.7 | 4.8 | 9.6 | ||||||||
Capital Expenditures | 9 | 9.8 | 9.3 | ||||||||
All Other | Intersegment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 84 | 104.5 | 105 | ||||||||
All Other | Total | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 92.2 | 112.3 | 110.4 | ||||||||
Operating Profit (Loss) | (18.9) | (8.2) | (25.6) | ||||||||
Consolidated Subsidiaries, Leasing [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | (798.1) | (673) | (798.1) | (673) | (557.2) | ||||||
Depreciation & Amortization | 0 | 0 | 0 | ||||||||
Capital Expenditures | 0 | 0 | 0 | ||||||||
Consolidated Subsidiaries, Leasing [Member] | Intersegment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (1,021.9) | (1,164.4) | (710.1) | ||||||||
Operating Profit (Loss) | (178.2) | (259.6) | (133.1) | ||||||||
Consolidated Subsidiaries, Excluding Leasing [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ (6.8) | $ (5.5) | (6.8) | (5.5) | (3.3) | ||||||
Depreciation & Amortization | (0.1) | (0.1) | (0.1) | ||||||||
Capital Expenditures | 0 | 0 | 0 | ||||||||
Consolidated Subsidiaries, Excluding Leasing [Member] | Intersegment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (325.3) | (421) | (347.9) | ||||||||
Operating Profit (Loss) | $ (0.7) | $ (0.9) | $ 0.4 |
Segment Information (Details 2
Segment Information (Details 2 and Textual) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of principal business segments of Company | segment | 5 | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 1,103.8 | $ 1,111.7 | $ 1,184.9 | $ 1,187.9 | $ 1,547 | $ 1,542.2 | $ 1,676.8 | $ 1,626.7 | $ 4,588.3 | $ 6,392.7 | $ 6,170 |
Total Assets | 9,125.3 | 8,885.9 | 9,125.3 | 8,885.9 | 8,695.3 | ||||||
Operating profit | 163.6 | $ 183.6 | $ 191.6 | $ 203.4 | 358 | $ 364.9 | $ 382.9 | $ 333.1 | 742.2 | 1,438.9 | 1,251 |
Mexico: | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 317.9 | 336.6 | 348 | ||||||||
Total Assets | 319 | 318.5 | 319 | 318.5 | |||||||
Long-Lived Assets | $ 195.5 | $ 207.5 | 195.5 | 207.5 | |||||||
Operating profit | 59 | 77.1 | 16.8 | ||||||||
Mexico: | External | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 118.9 | 106 | 130.4 | ||||||||
Mexico: | Intercompany | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 199 | $ 230.6 | $ 217.6 |
Partially-Owned Leasing Subsi66
Partially-Owned Leasing Subsidiaries (Details) - Partially-owned subsidiaries | 12 Months Ended |
Dec. 31, 2016USD ($)board_membersubsidiary | |
Noncontrolling Interest [Line Items] | |
Trinity guarantees of subsidiary-related activities | $ | $ 0 |
Railcar Leasing and Management Services Group | |
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 subsidiaries | $ | $ 222,400,000 |
Weighted average ownership interest | 39.00% |
Weighted average interest owned by institutional investors | 61.00% |
Railcar Leasing and Managemen67
Railcar Leasing and Management Services Group (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Consolidating Financial Information | ||
Cash, cash equivalents, and short-term marketable securities | $ 798.1 | $ 870.9 |
Property, plant, and equipment, net | 5,966.8 | 5,348 |
Restricted cash | 178.2 | 195.8 |
Debt: | ||
Recourse | 881.5 | 885.7 |
Less: unamortized discount | (27.1) | (44.2) |
Less: unamortized debt issuance costs | (3.8) | (4.8) |
Recourse, net of unamortized discount and unamortized debt issuance costs | 850.6 | 836.7 |
Non-recourse | 2,232.4 | 2,390.7 |
Less: unamortized debt issuance costs | (26.4) | (32) |
Non-recourse debt, net of unamortized debt issuance costs | 2,206 | 2,358.7 |
Total debt | 3,056.6 | 3,195.4 |
Net_deferred_tax_liabilities_(assets) | 1,057 | 734.8 |
Wholly-owned subsidiaries | ||
Debt: | ||
Non-recourse debt, net of unamortized debt issuance costs | 840 | 928.7 |
Partially-owned subsidiaries | ||
Consolidating Financial Information | ||
Restricted cash | 78.4 | 89.9 |
Debt: | ||
Non-recourse debt, net of unamortized debt issuance costs | 1,366 | 1,430 |
Manufacturing/Corporate | ||
Consolidating Financial Information | ||
Property, plant, and equipment, net | 961.7 | 956.1 |
Leasing Group | ||
Debt: | ||
Non-recourse debt, net of unamortized debt issuance costs | 2,206 | 2,358.7 |
Leasing Group | Wholly-owned subsidiaries | ||
Debt: | ||
Non-recourse | 851.4 | 943.8 |
Less: unamortized debt issuance costs | (11.4) | (15.1) |
Non-recourse debt, net of unamortized debt issuance costs | 840 | 928.7 |
Leasing Group | Partially-owned subsidiaries | ||
Debt: | ||
Non-recourse | 1,381 | 1,446.9 |
Less: unamortized debt issuance costs | (15) | (16.9) |
Non-recourse debt, net of unamortized debt issuance costs | 1,366 | 1,430 |
Operating Segments | ||
Consolidating Financial Information | ||
Property, plant, and equipment, net | 6,764.9 | 6,021 |
Operating Segments | Manufacturing/Corporate | ||
Consolidating Financial Information | ||
Property, plant, and equipment, net | 961.7 | 956.1 |
Operating Segments | Leasing Group | Wholly-owned subsidiaries | ||
Consolidating Financial Information | ||
Cash, cash equivalents, and short-term marketable securities | 7.2 | 3.8 |
Property, plant, and equipment, net | 3,923.6 | 3,126.3 |
Restricted cash | 99.7 | 105.9 |
Debt: | ||
Recourse | 32.1 | 35.8 |
Less: unamortized discount | 0 | 0 |
Less: unamortized debt issuance costs | (0.1) | (0.1) |
Recourse, net of unamortized discount and unamortized debt issuance costs | 32 | 35.7 |
Non-recourse | 851.4 | 943.8 |
Less: unamortized debt issuance costs | (11.4) | (15.1) |
Non-recourse debt, net of unamortized debt issuance costs | 840 | 928.7 |
Total debt | 872 | 964.4 |
Net_deferred_tax_liabilities_(assets) | 956.6 | 746 |
Operating Segments | Leasing Group | Partially-owned subsidiaries | ||
Consolidating Financial Information | ||
Cash, cash equivalents, and short-term marketable securities | 0 | 0 |
Property, plant, and equipment, net | 1,879.6 | 1,938.6 |
Restricted cash | 78.4 | 89.9 |
Debt: | ||
Recourse | 0 | 0 |
Less: unamortized discount | 0 | 0 |
Less: unamortized debt issuance costs | 0 | 0 |
Recourse, net of unamortized discount and unamortized debt issuance costs | 0 | 0 |
Non-recourse | 1,381 | 1,446.9 |
Less: unamortized debt issuance costs | (15) | (16.9) |
Non-recourse debt, net of unamortized debt issuance costs | 1,366 | 1,430 |
Total debt | 1,366 | 1,430 |
Net_deferred_tax_liabilities_(assets) | 2 | 1.4 |
Operating Segments | Manufacturing/Corporate | Manufacturing/Corporate | ||
Consolidating Financial Information | ||
Cash, cash equivalents, and short-term marketable securities | 790.9 | 867.1 |
Restricted cash | 0.1 | 0 |
Debt: | ||
Recourse | 849.4 | 849.9 |
Less: unamortized discount | (27.1) | (44.2) |
Less: unamortized debt issuance costs | (3.7) | (4.7) |
Recourse, net of unamortized discount and unamortized debt issuance costs | 818.6 | 801 |
Non-recourse | 0 | 0 |
Less: unamortized debt issuance costs | 0 | 0 |
Non-recourse debt, net of unamortized debt issuance costs | 0 | 0 |
Total debt | 818.6 | 801 |
Net_deferred_tax_liabilities_(assets) | 98.4 | (12.6) |
Intersegment | ||
Consolidating Financial Information | ||
Property, plant, and equipment, net | $ (798.1) | $ (673) |
Railcar Leasing and Managemen68
Railcar Leasing and Management Services Group (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||||||||||
Total revenues | $ 1,103.8 | $ 1,111.7 | $ 1,184.9 | $ 1,187.9 | $ 1,547 | $ 1,542.2 | $ 1,676.8 | $ 1,626.7 | $ 4,588.3 | $ 6,392.7 | $ 6,170 |
Operating profit: | |||||||||||
Total operating profit | $ 163.6 | $ 183.6 | $ 191.6 | $ 203.4 | $ 358 | $ 364.9 | $ 382.9 | $ 333.1 | 742.2 | 1,438.9 | 1,251 |
Selected expense information: | |||||||||||
Depreciation | 283 | 266.4 | 244.6 | ||||||||
Interest: | |||||||||||
Interest | 181.9 | 194.7 | 193.4 | ||||||||
Operating Segments | |||||||||||
Revenues: | |||||||||||
Total revenues | 5,935.5 | 7,978.1 | 7,228 | ||||||||
Operating profit: | |||||||||||
Total operating profit | 1,052.1 | 1,852 | 1,502.7 | ||||||||
Selected expense information: | |||||||||||
Depreciation | 274.4 | 258.7 | 237.3 | ||||||||
Railcar Leasing and Management Services Group | |||||||||||
Revenues: | |||||||||||
Total revenues | 824.9 | 1,091.6 | 1,106.4 | ||||||||
Selected expense information: | |||||||||||
Depreciation | 156.2 | 142.3 | 130 | ||||||||
Railcar Leasing and Management Services Group | Operating Segments | |||||||||||
Revenues: | |||||||||||
Total revenues | $ 827 | $ 1,104.8 | 1,118.3 | ||||||||
Percent Change, Revenues | (25.10%) | (1.20%) | |||||||||
Operating profit: | |||||||||||
Total operating profit | $ 360.1 | $ 606.2 | $ 516.3 | ||||||||
Percentage Change, Operating profit | (40.60%) | 17.40% | |||||||||
Operating profit margin: | |||||||||||
Total operating profit margin | 43.50% | 54.90% | 46.20% | ||||||||
Selected expense information: | |||||||||||
Depreciation | $ 156.2 | $ 142.3 | $ 130 | ||||||||
Percent Change, Depreciation | 9.80% | 9.50% | |||||||||
Maintenance and compliance | $ 104.3 | $ 97.3 | 78.9 | ||||||||
Percent Change, Maintenance | 7.20% | 23.30% | |||||||||
Rent | $ 39.3 | $ 41.6 | 52.9 | ||||||||
Percent Change, Rent | (5.50%) | (21.40%) | |||||||||
Interest: | |||||||||||
Interest | $ 125.2 | $ 138.8 | 153.3 | ||||||||
Percent Change, Total interest expense | (9.80%) | (9.50%) | |||||||||
Railcar Leasing and Management Services Group | Operating Segments | Leasing and management | |||||||||||
Revenues: | |||||||||||
Total revenues | $ 700.9 | $ 699.9 | 632 | ||||||||
Percent Change, Revenues | 0.10% | 10.70% | |||||||||
Operating profit: | |||||||||||
Total operating profit | $ 312.5 | $ 331.1 | $ 287.9 | ||||||||
Percentage Change, Operating profit | (5.60%) | 15.00% | |||||||||
Operating profit margin: | |||||||||||
Total operating profit margin | 44.60% | 47.30% | 45.60% | ||||||||
Railcar Leasing and Management Services Group | Operating Segments | Railcars owned one year or less at the time of sale | |||||||||||
Revenues: | |||||||||||
Total revenues | $ 126.1 | $ 404.9 | $ 486.3 | ||||||||
Operating profit: | |||||||||||
Total operating profit | 34.1 | 109 | 136.1 | ||||||||
Railcar Leasing and Management Services Group | Operating Segments | Railcars owned more than one year at the time of sale | |||||||||||
Operating profit: | |||||||||||
Total operating profit | $ 13.5 | $ 166.1 | $ 92.3 |
Railcar Leasing and Managemen69
Railcar Leasing and Management Services Group (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Proceeds from sale leased railcars | $ 171.9 | $ 1,180 | $ 995.3 |
Railcar Leasing and Management Services Group | Railcars owned one year or less at the time of sale | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Proceeds from sale leased railcars | 126.1 | 404.9 | 486.3 |
Railcar Leasing and Management Services Group | Railcars owned more than one year at the time of sale | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Proceeds from sale leased railcars | 37.7 | 514.6 | 265.8 |
Rail Group | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Proceeds from sale leased railcars | $ 8.1 | $ 260.5 | $ 243.2 |
Railcar Leasing and Managemen70
Railcar Leasing and Management Services Group (Details 4) - Railcar Leasing and Management Services Group - Railroad Transportation Equipment $ in Millions | Dec. 31, 2016USD ($) |
Property Subject to or Available for Operating Lease [Line Items] | |
2,017 | $ 521.5 |
2,018 | 436.9 |
2,019 | 356.1 |
2,020 | 277.5 |
2,021 | 177.2 |
Thereafter | 336.4 |
Total | $ 2,105.6 |
Railcar Leasing and Managemen71
Railcar Leasing and Management Services Group (Details 5) - Railcar Leasing and Management Services Group $ in Millions | Dec. 31, 2016USD ($) |
Railroad transportation equipment leased from independent owner trusts | |
Future operating lease obligations of Trusts’ railcars | |
2,017 | $ 29.2 |
2,018 | 29.2 |
2,019 | 28.8 |
2,020 | 26.1 |
2,021 | 26.1 |
Thereafter | 118 |
Total | 257.4 |
Future contractual minimum rental revenues of Trusts’ railcars | |
2,017 | 44.8 |
2,018 | 34.1 |
2,019 | 24 |
2,020 | 14.7 |
2,021 | 9.6 |
Thereafter | 14.5 |
Total | 141.7 |
Other Third Parties | |
Future operating lease obligations of Trusts’ railcars | |
2,017 | 12.1 |
2,018 | 12 |
2,019 | 9.5 |
2,020 | 7.7 |
2,021 | 7.6 |
Thereafter | 13.4 |
Total | 62.3 |
Future contractual minimum rental revenues of Trusts’ railcars | |
2,017 | 15.3 |
2,018 | 8.3 |
2,019 | 6.2 |
2,020 | 4.3 |
2,021 | 3.4 |
Thereafter | 4.2 |
Total | $ 41.7 |
Railcar Leasing and Managemen72
Railcar Leasing and Management Services Group (Details 6) - Railcar Leasing and Management Services Group - Other Third Parties $ in Millions | Dec. 31, 2016USD ($) |
Future operating lease obligations | |
2,017 | $ 12.1 |
2,018 | 12 |
2,019 | 9.5 |
2,020 | 7.7 |
2,021 | 7.6 |
Thereafter | 13.4 |
Total | 62.3 |
Future contractual minimum rental revenues | |
2,017 | 15.3 |
2,018 | 8.3 |
2,019 | 6.2 |
2,020 | 4.3 |
2,021 | 3.4 |
Thereafter | 4.2 |
Total | $ 41.7 |
Railcar Leasing and Managemen73
Railcar Leasing and Management Services Group (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2009 | |
Segment Reporting Information [Line Items] | |||||
Proceeds from sale leased railcars | $ 171.9 | $ 1,180 | $ 995.3 | ||
Assets | 9,125.3 | 8,885.9 | 8,695.3 | ||
Property, plant, and equipment, net | 5,966.8 | 5,348 | |||
Railcar Leasing and Management Services Group | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 6,095.7 | 5,358.2 | $ 4,939.1 | ||
Railcar Leasing and Management Services Group | Property lease guarantee | |||||
Segment Reporting Information [Line Items] | |||||
Operating lease obligations guaranteed | 9.3 | ||||
Railcar Leasing and Management Services Group | Wholly-owned subsidiaries | |||||
Segment Reporting Information [Line Items] | |||||
Net book value of unpledged equipment | 2,466.1 | ||||
Railcar Leasing and Management Services Group | Wholly owned qualified subsidiaries for leasing railcars from the Trusts | |||||
Segment Reporting Information [Line Items] | |||||
Purchase price of sale leaseback | $ 121.1 | ||||
Lease obligations, total, terminated | $ 105.8 | ||||
Assets | 145.5 | ||||
Cash | 53.5 | ||||
Railcar Leasing and Management Services Group | Wholly owned qualified subsidiaries for leasing railcars from the Trusts | Railroad Transportation Equipment | |||||
Segment Reporting Information [Line Items] | |||||
Property, plant, and equipment, net | $ 64.1 | ||||
Railcar Leasing and Management Services Group | Wholly owned qualified subsidiaries for leasing railcars from the Trusts | Railroad transportation equipment 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 | Capital lease obligations | |||||
Segment Reporting Information [Line Items] | |||||
Capital lease obligations | $ 32 | $ 35.7 | $ 56.6 | ||
Railcar Leasing and Management Services Group | Capital lease obligations | Wholly-owned subsidiaries | |||||
Segment Reporting Information [Line Items] | |||||
Net book value pledged as collateral | 42.2 | ||||
Railcar Leasing and Management Services Group | Secured debt | Wholly-owned subsidiaries | |||||
Segment Reporting Information [Line Items] | |||||
Net book value pledged as collateral | 1,393 | ||||
Railcar Leasing and Management Services Group | Secured debt | TRIP Holdings | TRIP Master Funding secured railcar equipment notes | |||||
Segment Reporting Information [Line Items] | |||||
Net book value pledged as collateral | 1,311 | ||||
Railcar Leasing and Management Services Group | Secured debt | TRL 2012 | TRL 2012 secured railcar equipment notes | |||||
Segment Reporting Information [Line Items] | |||||
Net book value pledged as collateral | $ 568.6 | ||||
Railcar Leasing and Management Services Group | Minimum | |||||
Segment Reporting Information [Line Items] | |||||
Term of leases with third parties | 1 year | ||||
Railcar Leasing and Management Services Group | Maximum | |||||
Segment Reporting Information [Line Items] | |||||
Term of leases with third parties | 20 years |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2006 |
Derivative [Line Items] | |||||
Total stockholders' equity | $ 4,311.1 | $ 4,048.7 | $ 3,397.4 | $ 2,749.1 | |
AOCL - Loss/(Income) | |||||
Derivative [Line Items] | |||||
Total stockholders' equity | (0.1) | $ (1.3) | $ (6.6) | $ (18.7) | |
Designated as hedging instrument | Interest rate swap, Expired, 2006 secured railcar equipment notes | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | $ 200 | $ 200 | |||
Interest Rate | 4.87% | ||||
Liability | $ 0 | ||||
Designated as hedging instrument | Interest rate swap, Expired, 2006 secured railcar equipment notes | AOCL - Loss/(Income) | |||||
Derivative [Line Items] | |||||
Total stockholders' equity | (0.7) | ||||
Designated as hedging instrument | Interest rate swap, Expired, 2006 secured railcar equipment notes | Noncontrolling interest | |||||
Derivative [Line Items] | |||||
Total stockholders' equity | 0 | ||||
Designated as hedging instrument | Interest rate swap, Expired, TRIP Holdings warehouse loan | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | $ 788.5 | ||||
Interest Rate | 3.60% | ||||
Liability | $ 0 | ||||
Designated as hedging instrument | Interest rate swap, Expired, TRIP Holdings warehouse loan | AOCL - Loss/(Income) | |||||
Derivative [Line Items] | |||||
Total stockholders' equity | 5.9 | ||||
Designated as hedging instrument | Interest rate swap, Expired, TRIP Holdings warehouse loan | Noncontrolling interest | |||||
Derivative [Line Items] | |||||
Total stockholders' equity | 8 | ||||
Designated as hedging instrument | Interest Rate Swap, Open, TRIP Master Funding secured railcar equipment notes | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | $ 38.7 | ||||
Interest Rate | 2.62% | ||||
Liability | $ 0.9 | ||||
Designated as hedging instrument | Interest Rate Swap, Open, TRIP Master Funding secured railcar equipment notes | AOCL - Loss/(Income) | |||||
Derivative [Line Items] | |||||
Total stockholders' equity | 0.4 | ||||
Designated as hedging instrument | Interest Rate Swap, Open, TRIP Master Funding secured railcar equipment notes | Noncontrolling interest | |||||
Derivative [Line Items] | |||||
Total stockholders' equity | $ 0.5 |
Derivative Instruments (Detai75
Derivative Instruments (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest rate swap, Expired, TRIP Holdings warehouse loan | |||
Derivative [Line Items] | |||
Expected effect during next twelve months | $ 4.5 | ||
Interest expense | Designated as hedging instrument | Interest rate swap, Expired, 2006 secured railcar equipment notes | |||
Derivative [Line Items] | |||
Expired hedges | (0.4) | $ (0.3) | $ (0.3) |
Expected effect during next twelve months | (0.2) | ||
Interest expense | Designated as hedging instrument | Interest rate swap, Expired, Promissory notes | |||
Derivative [Line Items] | |||
Expired hedges | 0 | 1.2 | 2.9 |
Expected effect during next twelve months | 0 | ||
Interest expense | Designated as hedging instrument | Interest rate swap, Expired, TRIP Holdings warehouse loan | |||
Derivative [Line Items] | |||
Expired hedges | 4.8 | 4.9 | 5.1 |
Expected effect during next twelve months | 4.5 | ||
Interest expense | Designated as hedging instrument | Interest Rate Swap, Open, TRIP Master Funding secured railcar equipment notes | |||
Derivative [Line Items] | |||
Open hedges | 0.9 | 1.3 | 1.5 |
Expected effect during next twelve months | 0.6 | ||
Interest expense | Designated as hedging instrument | Interest Rate Swap, Open, Promissory notes | |||
Derivative [Line Items] | |||
Open hedges | 0 | $ 5.3 | $ 15.4 |
Expected effect during next twelve months | $ 0 |
Derivative Instruments (Detai76
Derivative Instruments (Details Textual) - USD ($) $ in Millions | 12 Months Ended | 36 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2008 | Jul. 31, 2011 | Dec. 31, 2006 | |
Interest rate swap, Expired, TRIP Holdings warehouse loan | ||||||
Derivative [Line Items] | ||||||
Expected effect during next twelve months | $ (4.5) | |||||
Fuel derivative instruments | ||||||
Derivative [Line Items] | ||||||
Liability | 0.3 | |||||
Increase in cost of revenue | (0.4) | $ (1.1) | $ (2.3) | |||
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 | |||||
Liability | 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 | |||||
Liability | $ 0 | |||||
Designated as hedging instrument | TRIP Master Funding secured railcar equipment notes | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 94.1 |
Property, Plant, and Equipmen77
Property, Plant, and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 7,981 | $ 7,145.4 |
Less: accumulated depreciation | (2,014.2) | (1,797.4) |
Property, plant, and equipment, net | 5,966.8 | 5,348 |
Manufacturing/Corporate | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 1,936.1 | 1,861.5 |
Less: accumulated depreciation | (974.4) | (905.4) |
Property, plant, and equipment, net | 961.7 | 956.1 |
Partially-owned subsidiaries | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 1,979.8 | 1,980.1 |
Less: accumulated depreciation | (364.9) | (313.7) |
Land | Manufacturing/Corporate | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 103.3 | 86.5 |
Buildings and improvements | Manufacturing/Corporate | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 642.6 | 610.4 |
Machinery and other | Manufacturing/Corporate | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 1,151.1 | 1,095.9 |
Construction in progress | Manufacturing/Corporate | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 39.1 | 68.7 |
Operating Segments | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, net | 6,764.9 | 6,021 |
Operating Segments | Manufacturing/Corporate | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, net | 961.7 | 956.1 |
Operating Segments | Leasing Group | Wholly-owned subsidiaries | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 4,683.7 | 3,774.2 |
Less: accumulated depreciation | (760.1) | (647.9) |
Property, plant, and equipment, net | 3,923.6 | 3,126.3 |
Operating Segments | Leasing Group | Partially-owned subsidiaries | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, net | 1,879.6 | 1,938.6 |
Operating Segments | Machinery and other | Leasing Group | Wholly-owned subsidiaries | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 10.7 | 10.7 |
Operating Segments | Equipment on lease | Leasing Group | Wholly-owned subsidiaries | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 4,673 | 3,763.5 |
Operating Segments | Equipment on lease | Leasing Group | Partially-owned subsidiaries | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 2,309.4 | 2,307.7 |
Less: accumulated depreciation | (429.8) | (369.1) |
Net deferred profit on railcars sold to Leasing Group | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | (948.2) | (798) |
Less: accumulated depreciation | 150.1 | 125 |
Property, plant, and equipment, net | $ (798.1) | $ (673) |
Property, Plant, and Equipmen78
Property, Plant, and Equipment (Details Textual) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, net | $ 5,966.8 | $ 5,348 |
Nonoperating plants | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, net | 65.1 | |
Non-Leasing Group | ||
Property, Plant and Equipment [Line Items] | ||
2,017 | 10 | |
2,018 | 6.8 | |
2,019 | 4.1 | |
2,020 | 1.6 | |
2,021 | 0.8 | |
Thereafter | $ 3.7 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill by Segment | ||
Goodwill | $ 754,100,000 | $ 753,800,000 |
Goodwill, Impairment Loss | 0 | 0 |
Rail Group | ||
Goodwill by Segment | ||
Goodwill | 134,600,000 | 134,600,000 |
Goodwill, Impaired, Accumulated Impairment Loss | 325,000,000 | 325,000,000 |
Construction Products Group | ||
Goodwill by Segment | ||
Goodwill | 111,000,000 | 111,000,000 |
Energy Equipment Group | ||
Goodwill by Segment | ||
Goodwill | 506,700,000 | 506,400,000 |
Railcar Leasing and Management Services Group | ||
Goodwill by Segment | ||
Goodwill | $ 1,800,000 | $ 1,800,000 |
Warranties (Details)
Warranties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Beginning balance | $ 21.5 | $ 17.8 | $ 14.7 |
Warranty costs incurred | (9.4) | (7.1) | (6.1) |
Warranty originations and revisions | 8 | 17.2 | 12.6 |
Warranty expirations | (4.4) | (6.4) | (3.4) |
Ending balance | $ 15.7 | $ 21.5 | $ 17.8 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2009 |
Debt Instrument [Line Items] | |||
Unamortized discount on recourse debt | $ 27.1 | $ 44.2 | |
Less: unamortized debt issuance costs | (3.8) | (4.8) | |
Recourse, net of unamortized discount and unamortized debt issuance costs | 850.6 | 836.7 | |
Non-recourse debt | 2,232.4 | 2,390.7 | |
Less: unamortized debt issuance costs | (26.4) | (32) | |
Non-recourse debt, net of unamortized debt issuance costs | 2,206 | 2,358.7 | |
Total debt | 3,056.6 | 3,195.4 | |
Wholly-owned subsidiaries | |||
Debt Instrument [Line Items] | |||
Non-recourse debt, net of unamortized debt issuance costs | 840 | 928.7 | |
Partially-owned subsidiaries | |||
Debt Instrument [Line Items] | |||
Non-recourse debt, net of unamortized debt issuance costs | 1,366 | 1,430 | |
Corporate | |||
Debt Instrument [Line Items] | |||
Corporate – Recourse | 822.3 | 805.7 | |
Less: unamortized debt issuance costs | (3.7) | (4.7) | |
Long-term debt, net of debt issuance costs | 818.6 | 801 | |
Railcar Leasing and Management Services Group | |||
Debt Instrument [Line Items] | |||
Non-recourse debt, net of unamortized debt issuance costs | 2,206 | 2,358.7 | |
Railcar Leasing and Management Services Group | Wholly-owned subsidiaries | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 851.4 | 943.8 | |
Less: unamortized debt issuance costs | (11.4) | (15.1) | |
Non-recourse debt, net of unamortized debt issuance costs | 840 | 928.7 | |
Railcar Leasing and Management Services Group | Partially-owned subsidiaries | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 1,381 | 1,446.9 | |
Less: unamortized debt issuance costs | (15) | (16.9) | |
Non-recourse debt, net of unamortized debt issuance costs | 1,366 | 1,430 | |
Line of credit | Revolving credit facility | Corporate | |||
Debt Instrument [Line Items] | |||
Corporate – Recourse | 0 | 0 | |
Line of credit | Revolving credit facility | Railcar Leasing and Management Services Group | TILC warehouse facility | Wholly-owned subsidiaries | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 204.1 | 264.3 | |
Senior notes, net of unamortized discount of $0.4 and $0.4 | Corporate | |||
Debt Instrument [Line Items] | |||
Corporate – Recourse | 399.6 | 399.6 | |
Unamortized discount on recourse debt | 0.4 | 0.4 | |
Convertible subordinated notes, net of unamortized discount of $26.7 and $43.8 | Corporate | 3-7/8% convertible subordinated notes due 2036 | |||
Debt Instrument [Line Items] | |||
Corporate – Recourse | 422.7 | 405.6 | |
Unamortized discount on recourse debt | 26.7 | 43.8 | |
Other | Corporate | |||
Debt Instrument [Line Items] | |||
Corporate – Recourse | 0 | 0.5 | |
Capital lease obligations, net of unamortized debt issuance costs of $0.1 and $0.1 | Railcar Leasing and Management Services Group | |||
Debt Instrument [Line Items] | |||
Less: unamortized debt issuance costs | (0.1) | (0.1) | |
Capital lease obligations | 32 | 35.7 | $ 56.6 |
Secured debt | Railcar Leasing and Management Services Group | 2006 secured railcar equipment notes | Wholly-owned subsidiaries | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 194.2 | 204.1 | |
Secured debt | Railcar Leasing and Management Services Group | 2009 secured railcar equipment notes | Wholly-owned subsidiaries | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 172.5 | 179.2 | |
Secured debt | Railcar Leasing and Management Services Group | 2010 secured railcar equipment notes | Wholly-owned subsidiaries | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 280.6 | 296.2 | |
Secured debt | Railcar Leasing and Management Services Group | TRL 2012 secured railcar equipment notes | Partially-owned subsidiaries | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | 425.5 | 449.1 | |
Secured debt | Railcar Leasing and Management Services Group | TRIP Master Funding secured railcar equipment notes | Partially-owned subsidiaries | |||
Debt Instrument [Line Items] | |||
Non-recourse debt | $ 955.5 | $ 997.8 |
Debt (Details 2)
Debt (Details 2) - 3-7/8% convertible subordinated notes due 2036 - Convertible subordinated notes - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Coupon rate interest | $ 17.4 | $ 17.4 | $ 17.4 |
Amortized debt discount | 17.1 | 15.7 | 14.5 |
Total interest expense recognized on the Convertible Subordinated Notes | $ 34.5 | $ 33.1 | $ 31.9 |
Debt (Details 3)
Debt (Details 3) $ in Millions | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |
2,017 | $ 119.1 |
2,018 | 142.8 |
2,019 | 305.9 |
2,020 | 118.7 |
2,021 | 132.4 |
Thereafter | 2,295 |
Corporate | |
Debt Instrument [Line Items] | |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 849.4 |
Railcar Leasing and Management Services Group | Capital lease obligations | |
Debt Instrument [Line Items] | |
2,017 | 3.6 |
2,018 | 28.5 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 0 |
Railcar Leasing and Management Services Group | Secured debt | 2006 secured railcar equipment notes | |
Debt Instrument [Line Items] | |
2,017 | 35.9 |
2,018 | 25.3 |
2,019 | 28 |
2,020 | 29.8 |
2,021 | 29.2 |
Thereafter | 46 |
Railcar Leasing and Management Services Group | Secured debt | 2009 secured railcar equipment notes | |
Debt Instrument [Line Items] | |
2,017 | 6.3 |
2,018 | 6.4 |
2,019 | 11.2 |
2,020 | 6.6 |
2,021 | 13.4 |
Thereafter | 128.6 |
Railcar Leasing and Management Services Group | Secured debt | 2010 secured railcar equipment notes | |
Debt Instrument [Line Items] | |
2,017 | 13.6 |
2,018 | 10 |
2,019 | 7.6 |
2,020 | 14.2 |
2,021 | 20.1 |
Thereafter | 215.1 |
Railcar Leasing and Management Services Group | Secured debt | TRL 2012 secured railcar equipment notes | |
Debt Instrument [Line Items] | |
2,017 | 22.7 |
2,018 | 22.9 |
2,019 | 21.9 |
2,020 | 19.3 |
2,021 | 19.9 |
Thereafter | 318.8 |
Railcar Leasing and Management Services Group | Secured debt | TRIP Master Funding secured railcar equipment notes | |
Debt Instrument [Line Items] | |
2,017 | 28.8 |
2,018 | 41.5 |
2,019 | 49.5 |
2,020 | 48.8 |
2,021 | 49.8 |
Thereafter | 737.1 |
Railcar Leasing and Management Services Group | Line of credit | Revolving credit facility | TILC warehouse facility | |
Debt Instrument [Line Items] | |
2,017 | 8.2 |
2,018 | 8.2 |
2,019 | 2.1 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 0 |
Railcar Leasing and Management Services Group | Line of credit | Revolving credit facility | Facility termination payments - TILC Warehouse facility | |
Debt Instrument [Line Items] | |
2,017 | 0 |
2,018 | 0 |
2,019 | 185.6 |
2,020 | 0 |
2,021 | 0 |
Thereafter | $ 0 |
Debt (Details Textual)
Debt (Details Textual) | 12 Months Ended | ||||||||||
Dec. 31, 2016USD ($)dayclass$ / shares | Dec. 31, 2015USD ($) | Sep. 30, 2014USD ($) | May 31, 2014USD ($)class | Aug. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Jul. 31, 2011USD ($) | Oct. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Nov. 30, 2009USD ($) | May 31, 2006USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Non-recourse debt | $ 2,206,000,000 | $ 2,358,700,000 | |||||||||
Wholly-owned subsidiaries | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Non-recourse debt | $ 840,000,000 | 928,700,000 | |||||||||
Secured debt | TRL V | 2006 secured railcar equipment notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount upon issuance | $ 355,000,000 | ||||||||||
Fixed interest rate | 5.90% | ||||||||||
Non-recourse debt | $ 194,200,000 | ||||||||||
Secured debt | TRL VII | 2009 secured railcar equipment notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount upon issuance | $ 238,300,000 | ||||||||||
Fixed interest rate | 6.66% | ||||||||||
Non-recourse debt | $ 172,500,000 | ||||||||||
Secured debt | TRL 2010 | 2010 secured railcar equipment notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount upon issuance | $ 369,200,000 | ||||||||||
Fixed interest rate | 5.19% | ||||||||||
Non-recourse debt | $ 280,600,000 | ||||||||||
Secured debt | TRIP Holdings | TRIP Holdings Senior Secured Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount upon issuance | $ 175,000,000 | ||||||||||
Secured debt | TRIP Master Funding | TRIP Master Funding secured railcar equipment notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount upon issuance | $ 857,000,000 | ||||||||||
Number of classes of debt | class | 3 | ||||||||||
Secured debt | TRIP Master Funding | TRIP Master Funding Secured Railcar Equipment, Class A-1a notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed interest rate | 4.37% | ||||||||||
Non-recourse debt | $ 88,100,000 | ||||||||||
Secured debt | TRIP Master Funding | TRIP Master Funding Secured Railcar Equipment, Class A-1b notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Non-recourse debt | $ 49,800,000 | ||||||||||
Secured debt | TRIP Master Funding | TRIP Master Funding Secured Railcar Equipment, Class A-1b notes | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.50% | ||||||||||
Secured debt | TRIP Master Funding | Trip Master Funding Secured Railcar Equipment, Class A-2 notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed interest rate | 6.02% | ||||||||||
Non-recourse debt | $ 509,600,000 | ||||||||||
Secured debt | TRIP Master Funding | TRIP Master Funding, Series 2014-1 Secured Railcar Equipment Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount upon issuance | $ 335,700,000 | ||||||||||
Number of classes of debt | class | 2 | ||||||||||
Secured debt | TRIP Master Funding | TRIP Master Funding, Series 2014-1 Secured Railcar Equipment Notes, Class A-1 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed interest rate | 2.86% | ||||||||||
Secured debt | TRIP Master Funding | TRIP Master Funding Series, 2014-1 Secured Railcar Equipment Notes, Class A-2 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed interest rate | 4.09% | ||||||||||
Secured debt | TRL 2012 | 2012 Class A-1 Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount upon issuance | $ 145,400,000 | ||||||||||
Fixed interest rate | 2.27% | ||||||||||
Non-recourse debt | $ 79,200,000 | ||||||||||
Secured debt | TRL 2012 | 2012 Class A-2 Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount upon issuance | $ 188,400,000 | ||||||||||
Fixed interest rate | 3.53% | ||||||||||
Non-recourse debt | $ 188,400,000 | ||||||||||
Secured debt | TRL 2012 | Series 2013-1 Secured Railcar Equipment Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount upon issuance | $ 183,400,000 | ||||||||||
Fixed interest rate | 3.90% | ||||||||||
Non-recourse debt | $ 157,900,000 | ||||||||||
Corporate | Convertible subordinated notes | 3-7/8% convertible subordinated notes due 2036 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Percentage of principal amount used in cash redemption value computation | 100.00% | ||||||||||
Debt instrument, convertible, if-converted value in excess of principal | $ 92,500,000 | 92,500,000 | |||||||||
Effective annual interest rate | 8.42% | ||||||||||
Convertible debt, threshold percentage of stock price trigger | 130.00% | ||||||||||
Convertible debt, threshold trading days | day | 20 | ||||||||||
Convertible debt, threshold consecutive trading days | 30 days | ||||||||||
Convertible debt, conversion price (in dollars per share) | $ / shares | $ 24.57 | ||||||||||
Fixed interest rate | 3.875% | ||||||||||
Corporate | Senior notes | 4.55% Senior Notes due October 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount upon issuance | $ 400,000,000 | ||||||||||
Fixed interest rate | 4.55% | ||||||||||
Railcar Leasing and Management Services Group | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Non-recourse debt | $ 2,206,000,000 | 2,358,700,000 | |||||||||
Railcar Leasing and Management Services Group | Wholly-owned subsidiaries | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Non-recourse debt | 840,000,000 | 928,700,000 | |||||||||
Railcar Leasing and Management Services Group | Secured debt | TRIP Master Funding | TRIP Master Funding, Series 2014-1 Secured Railcar Equipment Notes, Class A-1 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Non-recourse debt | 87,300,000 | ||||||||||
Railcar Leasing and Management Services Group | Secured debt | TRIP Master Funding | TRIP Master Funding Series, 2014-1 Secured Railcar Equipment Notes, Class A-2 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Non-recourse debt | 220,700,000 | ||||||||||
Railcar Leasing and Management Services Group | Capital lease obligations | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Capital lease obligations | 32,000,000 | $ 35,700,000 | $ 56,600,000 | ||||||||
Capital lease obligation, gross of issuance costs | 32,100,000 | ||||||||||
Revolving credit facility | Corporate | Line of credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, maximum borrowing capacity | 600,000,000 | ||||||||||
Credit facility, remaining borrowing capacity | 507,700,000 | ||||||||||
Credit facility, amount outstanding exclusive of letters of credit | 0 | ||||||||||
Revolving credit facility | Railcar Leasing and Management Services Group | Line of credit | TILC | TILC warehouse facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||||||||||
Effective annual interest rate | 2.64% | ||||||||||
Long-term line of credit | $ 204,100,000 | ||||||||||
Revolving credit facility | Railcar Leasing and Management Services Group | Line of credit | Wholly-owned subsidiaries | TILC warehouse facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, remaining borrowing capacity, exclusive of current restrictions | 795,900,000 | ||||||||||
Letter of credit | Corporate | Line of credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Letters of credit outstanding | 92,300,000 | ||||||||||
Letters of credit, outstanding, expiring In next 12 months | $ 92,200,000 |
Other, Net (Details)
Other, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income and Expenses [Abstract] | |||
Foreign currency exchange transactions | $ 2.4 | $ (2.1) | $ (1.2) |
(Gain) loss on equity investments | (0.1) | 0.1 | (0.8) |
Other | (3.4) | (3.6) | (2.6) |
Other, net | $ (1.1) | $ (5.6) | $ (4.6) |
Other, Net (Details Textual)
Other, Net (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Other Income and Expenses [Abstract] | |
Realized Investment Gains (Losses) | $ 2.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ (130.3) | $ 271.2 | $ 322.7 |
State | 3.3 | 19.6 | 19.4 |
Foreign | 7.7 | 18.6 | 18.5 |
Total current | (119.3) | 309.4 | 360.6 |
Deferred: | |||
Federal | 313 | 117.4 | (4) |
State | 8.1 | (0.3) | 1.2 |
Foreign | 0.3 | (0.5) | (3) |
Total deferred | 321.4 | 116.6 | (5.8) |
Provision | $ 202.1 | $ 426 | $ 354.8 |
Income Taxes (Details 2)
Income Taxes (Details 2) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
State taxes | 1.40% | 1.20% | 1.40% |
Domestic production activities deduction | (0.00%) | (1.40%) | (2.00%) |
Noncontrolling interest in partially-owned subsidiaries | (1.30%) | (0.80%) | (1.10%) |
Changes in valuation allowances and reserves | 0.30% | 0.00% | 0.10% |
Other, net | 0.30% | 0.00% | (0.10%) |
Effective rate | 35.70% | 34.00% | 33.30% |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax liabilities: | ||
Depreciation, depletion, and amortization | $ 919.6 | $ 711.6 |
Partially-owned subsidiaries basis difference | 171.5 | 144 |
Convertible debt | 137.4 | 125.2 |
Total deferred tax liabilities | 1,228.5 | 980.8 |
Deferred tax assets: | ||
Workers compensation, pensions, and other benefits | 46.7 | 73.7 |
Warranties and reserves | 12.1 | 11.4 |
Equity items | 52.6 | 52.4 |
Tax loss carryforwards and credits | 24.9 | 25.7 |
Inventory | 29.2 | 34.1 |
Accrued liabilities and other | 6.5 | 8.3 |
Total deferred tax assets | 172 | 205.6 |
Net deferred tax liabilities before valuation allowances | 1,056.5 | 775.2 |
Valuation allowances | 11.7 | 10.1 |
Net deferred tax liabilities before reserve for uncertain tax positions | 1,068.2 | 785.3 |
Deferred tax assets included in reserve for uncertain tax positions | (11.2) | (50.5) |
Adjusted net deferred tax liabilities | $ 1,057 | $ 734.8 |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 65.2 | $ 62.3 | $ 55 |
Additions for tax positions related to the current year | 0 | 5.5 | 5 |
Additions for tax positions of prior years | 1 | 0 | 2.5 |
Reductions for tax positions of prior years | (26.6) | (0.7) | (0.1) |
Settlements | (7.1) | (1.9) | 0 |
Expiration of statute of limitations | (4.3) | 0 | (0.1) |
Ending balance | $ 28.2 | $ 65.2 | $ 62.3 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||
Income before income taxes for U.S. operations | $ 573.1 | $ 1,241.1 | $ 1,051.4 |
Income before income taxes for foreign operations | (6.3) | 10.9 | 12.6 |
Net operating loss carryforwards | 21 | ||
Remaining state loss carryforwards | 6.5 | ||
Additions for tax positions related to the current year | 0 | 5.5 | 5 |
Additions for tax positions of prior years | 1 | 0 | 2.5 |
Reduction in tax positions of prior years | 26.6 | 0.7 | 0.1 |
Unrecognized tax benefits including interest and penalties that would affect the Company's effective tax rate if recognized | 13.1 | 13.9 | |
Total accrued interest and penalties related to uncertain tax positions | 8.9 | 12.4 | |
Increase (decrease) in income tax expense related to interest and penalties on unrecognized tax benefits | 3.5 | $ 0.8 | $ 0.8 |
Settlement with taxing authority and lapse in statute of limitations | |||
Income Tax Contingency [Line Items] | |||
Reasonably possible decrease in unrecognized federal and state tax benefits within twelve months | $ 24.4 |
Employee Retirement Plans (Deta
Employee Retirement Plans (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assumptions used to determine benefit obligations at the annual measurement date were: | |||
Obligation discount rate | 4.34% | 4.79% | 4.33% |
Compensation increase rate | 4.00% | 4.00% | 4.00% |
Assumptions used to determine net periodic benefit costs were: | |||
Obligation discount rate | 4.79% | 4.33% | 5.22% |
Long-term rate of return on plan assets | 6.50% | 7.00% | 7.75% |
Compensation increase rate | 4.00% | 4.00% | 4.00% |
Employee Retirement Plans (De93
Employee Retirement Plans (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Expense Components | |||
Service cost | $ 0.4 | $ 0.5 | $ 0.5 |
Interest | 20.8 | 20 | 20.2 |
Expected return on plan assets | (27.2) | (30.5) | (31) |
Amortization of actuarial loss | 5.1 | 5 | 2.1 |
Defined benefit expense | (0.9) | (5) | (8.2) |
Profit sharing | 15.2 | 18.7 | 17.4 |
Multiemployer plan | 2.3 | 2.4 | 0.8 |
Net expense | $ 16.6 | $ 16.1 | $ 10 |
Employee Retirement Plans (De94
Employee Retirement Plans (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Benefit Obligations | $ 459.6 | $ 445.3 | |
Projected Benefit Obligations: | |||
Beginning of year | 445.3 | 473.9 | |
Service cost | 0.4 | 0.5 | $ 0.5 |
Interest | 20.8 | 20 | 20.2 |
Benefits paid | (18.1) | (17.3) | |
Actuarial (gain)/loss | 11.2 | (31.8) | |
End of year | 459.6 | 445.3 | 473.9 |
Plans' Assets: | |||
Beginning of year | 422.8 | 434.5 | |
Actual return on assets | 33.1 | (10.6) | |
Employer contributions | 4.7 | 16.2 | |
Benefits paid | (18.1) | (17.3) | |
End of year | 442.5 | 422.8 | $ 434.5 |
Consolidated Balance Sheet Components: | |||
Net funded status | $ (17.1) | $ (22.5) | |
Percent of projected benefit obligations funded | 96.30% | 94.90% | |
Other assets | |||
Consolidated Balance Sheet Components: | |||
Defined Benefit Plan, Amounts Recognized in Balance Sheet | $ 5.1 | $ 3.5 | |
Accrued liabilities | |||
Consolidated Balance Sheet Components: | |||
Defined Benefit Plan, Amounts Recognized in Balance Sheet | $ (22.2) | $ (26) |
Employee Retirement Plans (De95
Employee Retirement Plans (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Actuarial loss | $ (5.3) | $ (9.4) | $ (71.9) |
Amortization of actuarial loss | 5.1 | 5 | 2.1 |
Curtailment | 0 | 0 | 0.1 |
Total before income taxes | (0.2) | (4.4) | (69.7) |
Income tax expense (benefit) | (0.1) | (1.6) | (25.9) |
Net amount recognized in other comprehensive loss | $ (0.1) | $ (2.8) | $ (43.8) |
Employee Retirement Plans (De96
Employee Retirement Plans (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Actual Allocation | 100.00% | ||
Fair Value Measurement | $ 442.5 | $ 422.8 | $ 434.5 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Measurement | 5.9 | 1.8 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Measurement | 436.6 | 421 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Measurement | $ 0 | 0 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual Allocation | 1.00% | ||
Fair Value Measurement | $ 5.9 | 1.8 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Measurement | 5.9 | 1.8 | |
Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Measurement | 0 | 0 | |
Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Measurement | $ 0 | 0 | |
Liability hedging portfolio | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 50.00% | ||
Actual Allocation | 46.00% | ||
Growth portfolio | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 50.00% | ||
Actual Allocation | 53.00% | ||
Debt common trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Measurement | $ 277.2 | 273.9 | |
Debt common trust funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Measurement | 0 | 0 | |
Debt common trust funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Measurement | 277.2 | 273.9 | |
Debt common trust funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Measurement | 0 | 0 | |
Equity common trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Measurement | 159.4 | 147.1 | |
Equity common trust funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Measurement | 0 | 0 | |
Equity common trust funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Measurement | 159.4 | 147.1 | |
Equity common trust funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Measurement | $ 0 | $ 0 |
Employee Retirement Plans (De97
Employee Retirement Plans (Details 6) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Multiemployer Plans [Line Items] | |||
PPA Zone Status | Yellow | Yellow | |
Financial improvement plan status | Implemented | ||
Multiemployer plan contributions | $ 2.3 | $ 2.5 | $ 0.6 |
Surcharge imposed | No | ||
Expiration date of collective bargaining agreement | Jul. 3, 2019 | ||
Boilermaker-Blacksmith National Pension Trust | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number | 486,168,020 |
Employee Retirement Plans (De98
Employee Retirement Plans (Details 7) $ in Millions | Dec. 31, 2016USD ($) |
Compensation and Retirement Disclosure [Abstract] | |
2,017 | $ 20.4 |
2,018 | 21.5 |
2,019 | 23.4 |
2,020 | 24.4 |
2,021 | 25.3 |
2022-2026 | $ 138.6 |
Employee Retirement Plans (De99
Employee Retirement Plans (Details Textual) | 12 Months Ended | ||
Dec. 31, 2016USD ($)portfolio | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Schedule of Benefit Plans Disclosures [Line Items] | |||
Plan assets expected to be returned | $ 0 | ||
Unrecognized actuarial losses included in AOCL | 142,800,000 | ||
Unrecognized actuarial losses included in AOCL, net of tax | 89,700,000 | ||
Actuarial losses expected to be recognized in net periodic pension cost within twelve months | 5,000,000 | ||
Actuarial losses expected to be recognized in net periodic pension cost within twelve months, net of tax | $ 3,100,000 | ||
Pension plan assets, number of portfolios | portfolio | 2 | ||
Funding percentage | 100.00% | ||
Expected employer contributions to defined benefit plans next year | $ 2,500,000 | ||
Actual employer contributions to defined benefit plans | 4,700,000 | $ 16,200,000 | |
Expected employer contributions to 401(k) plans and Supplemental Profit Sharing Plan next year | 15,200,000 | ||
Actual employer contributions to 401(k) plans and Supplemental Profit Sharing Plan | 18,500,000 | ||
Multiemployer plan, expected contributions in following year | 2,300,000 | ||
Multiemployer plan contributions | $ 2,300,000 | $ 2,500,000 | $ 600,000 |
Minimum | |||
Schedule of Benefit Plans Disclosures [Line Items] | |||
Company contributions to the Profit Sharing Plan as a percentage of eligible compensation based on service | 1.00% | ||
Maximum | |||
Schedule of Benefit Plans Disclosures [Line Items] | |||
Company's contributions to multiemployer plan as a percentage of total contributions (less than) | 5.00% | ||
Company contributions to the Profit Sharing Plan as a percentage of eligible compensation based on service | 3.00% | ||
Liability hedging portfolio | |||
Schedule of Benefit Plans Disclosures [Line Items] | |||
Funding percentage | 110.00% | ||
Liability hedging portfolio | Minimum | |||
Schedule of Benefit Plans Disclosures [Line Items] | |||
Target Allocation | 50.00% | ||
Liability hedging portfolio | Maximum | |||
Schedule of Benefit Plans Disclosures [Line Items] | |||
Target Allocation | 100.00% | ||
Growth portfolio | Maximum | |||
Schedule of Benefit Plans Disclosures [Line Items] | |||
Target Allocation | 50.00% |
Accumulated Other Comprehens100
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before-tax reclassification of net actuarial gains/(losses) | $ (5.1) | $ (5) | $ (2.1) |
Amounts reclassified from accumulated other comprehensive loss, tax benefit | 2.6 | 5.2 | 9.2 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 4,048.7 | 3,397.4 | 2,749.1 |
Other comprehensive income (loss), net of tax, before reclassifications | (2.8) | (12.7) | (48.3) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 7.8 | 12.2 | 17.3 |
Less: noncontrolling interest | (5) | 0.5 | 31 |
Other comprehensive income (loss) | 1.9 | (3.5) | (34) |
Transfer of interests in partially-owned leasing subsidiaries | 0.3 | ||
Ending balance | 4,311.1 | 4,048.7 | 3,397.4 |
Cost of sales | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before-tax reclassification of net actuarial gains/(losses) | 4.1 | 4.2 | 1.7 |
Currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from accumulated other comprehensive loss, tax benefit | 0 | 0 | 0 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (24.5) | (18.5) | (16.5) |
Other comprehensive income (loss), net of tax, before reclassifications | 0.8 | (6) | (2) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 |
Other comprehensive income (loss) | 0.8 | (6) | (2) |
Ending balance | (23.7) | (24.5) | (18.5) |
Currency translation adjustments attributable to noncontrolling interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Less: noncontrolling interest | 0 | 0 | 0 |
Unrealized loss on derivative financial instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from accumulated other comprehensive loss, tax benefit | 0.7 | 3.4 | 8.4 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (1.3) | (6.6) | (18.7) |
Other comprehensive income (loss), net of tax, before reclassifications | (0.3) | (0.7) | (1.2) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 4.6 | 9 | 16 |
Other comprehensive income (loss) | 1.2 | 5.3 | 11.8 |
Transfer of interests in partially-owned leasing subsidiaries | 0.3 | ||
Ending balance | (0.1) | (1.3) | (6.6) |
Unrealized loss on derivative financial instruments attributable to noncontrolling interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Less: noncontrolling interest | (3.1) | (3) | (3) |
Net actuarial gains/(losses) of defined benefit plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from accumulated other comprehensive loss, tax benefit | 1.9 | 1.8 | 0.8 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (89.6) | (86.8) | (43) |
Other comprehensive income (loss), net of tax, before reclassifications | (3.3) | (6) | (45.1) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 3.2 | 3.2 | 1.3 |
Other comprehensive income (loss) | (0.1) | (2.8) | (43.8) |
Ending balance | (89.7) | (89.6) | (86.8) |
Net actuarial gains/(losses) of defined benefit plans attributable to noncontrolling interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Less: noncontrolling interest | 0 | 0 | 0 |
Accumulated Other Comprehensive Loss | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (115.4) | (111.9) | (78.2) |
Less: noncontrolling interest | (1.9) | 3.5 | 34 |
Ending balance | (113.5) | (115.4) | (111.9) |
Accumulated Other Comprehensive Loss attributable to noncontrolling interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 394.8 | 401.5 | 347 |
Less: noncontrolling interest | (3.1) | (3) | (3) |
Ending balance | $ 392.6 | $ 394.8 | $ 401.5 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of Shares, Options outstanding, Beginning of period (in shares) | 60,793 | |
Number of Shares, Granted (in shares) | 0 | |
Number of Shares, Exercised (in shares) | 0 | |
Number of Shares, Cancelled (in shares) | 0 | |
Number of Shares, Options outstanding, End of period (in shares) | 60,793 | 60,793 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted Average Exercise Price, Options outstanding, Beginning of period (in dollars per share) | $ 8.12 | |
Weighted Average Exercise Price, Granted (in dollars per share) | 0 | |
Weighted Average Exercise Price, Exercised (in dollars per share) | 0 | |
Weighted Average Exercise Price, Cancelled (in dollars per share) | 0 | |
Weighted Average Exercise Price, Options outstanding, End of period (in dollars per share) | $ 8.12 | $ 8.12 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted Average Remaining Contractual Terms (Years), Options outstanding | 1 year 11 months | 2 years 11 months |
Aggregate Intrinsic Value, Options outstanding | $ 1.2 | $ 1 |
Stock-Based Compensation (De102
Stock-Based Compensation (Details 2) - Restricted share awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of Restricted Share Awards, Restricted share awards outstanding, Beginning balance (in shares) | 6,798,175 | ||
Number of Restricted Share Awards, Granted (in shares) | 2,969,439 | ||
Number of Restricted Share Awards, Vested (in shares) | (2,746,507) | ||
Number of Restricted Share Awards, Forfeited (in shares) | (272,024) | ||
Number of Restricted Share Awards, Restricted share awards outstanding, Ending balance (in shares) | 6,749,083 | 6,798,175 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Weighted Average Grant-Date Fair Value per Award, Restricted share awards outstanding, Beginning balance (in dollars per share) | $ 23.76 | ||
Weighted Average Grant-Date Fair Value per Award, Granted (in dollars per share) | 19.06 | $ 24.31 | $ 32.35 |
Weighted Average Grant-Date Fair Value per Award, Vested (in dollars per share) | 21.93 | ||
Weighted Average Grant-Date Fair Value per Award, Forfeited (in dollars per share) | 25.90 | ||
Weighted Average Grant-Date Fair Value per Award, Restricted share awards outstanding, Ending balance (in dollars per share) | $ 22.35 | $ 23.76 |
Stock-Based Compensation (De103
Stock-Based Compensation (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock provided for awarding by the Plan (in shares) | 17,450,000 | ||
Number of shares available for issuance (in shares) | 2,123,136 | ||
Contractual term of award | 10 years | ||
Award vesting period | 5 years | ||
Stock-based compensation expense | $ 41,300,000 | $ 61,100,000 | $ 53,300,000 |
Income tax benefit related to stock-based compensation expense | 18,000,000 | 28,500,000 | 40,100,000 |
Unrecognized compensation expense | 0 | ||
Intrinsic value of options exercised | $ 0 | 700,000 | 1,800,000 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual term of award | 10 years | ||
Award vesting period | 5 years | ||
Restricted share awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense related to restricted share awards | $ 63,100,000 | ||
Weighted average recognition period | 4 years 9 months | ||
Vesting-date fair value of shares vested and released | $ 47,000,000 | $ 76,900,000 | $ 105,200,000 |
Weighted average grant-date fair value of restricted share awards granted (in dollars per share) | $ 19.06 | $ 24.31 | $ 32.35 |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting condition - age of employee | 65 years | ||
Vesting condition - age plus years of vested service | 80 years | ||
Restricted stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Restricted stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 15 years | ||
Performance units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target grant potentially issuable depending on achievement of certain specified goals | 0.00% | ||
Performance units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target grant potentially issuable depending on achievement of certain specified goals | 200.00% |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Total weighted average restricted shares and antidilutive stock options | 6.6 | 6.8 | 7.4 | ||||||||
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Net income | $ 74.2 | $ 89.6 | $ 98.8 | $ 102.1 | $ 204 | $ 212.2 | $ 220.8 | $ 189 | $ 364.7 | $ 826 | $ 709.3 |
Net income attributable to noncontrolling interest | 21.1 | 29.5 | 31.1 | ||||||||
Net income attributable to Trinity Industries, Inc. | $ 67.6 | $ 84.2 | $ 94.6 | $ 97.2 | $ 200 | $ 204.3 | $ 212 | $ 180.2 | 343.6 | 796.5 | 678.2 |
Unvested restricted share participation | 9.4 | 24.1 | 22.1 | ||||||||
Net income attributable to Trinity Industries, Inc. – basic | $ 334.2 | $ 772.4 | $ 656.1 | ||||||||
Net income attributable to Trinity Industries, Inc. - basic (shares) | 148.4 | 150.2 | 151 | ||||||||
Net income attributable to Trinity Industries, Inc. - basic (EPS) | $ 0.44 | $ 0.55 | $ 0.62 | $ 0.64 | $ 1.30 | $ 1.32 | $ 1.36 | $ 1.15 | $ 2.25 | $ 5.14 | $ 4.35 |
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | |||||||||||
Stock options | $ 0 | $ 0 | $ 0 | ||||||||
Stock options (shares) | 0 | 0 | 0.1 | ||||||||
Convertible subordinated notes | $ 0 | $ 0.3 | $ 0.7 | ||||||||
Convertible subordinated notes (shares) | 0.2 | 2 | 5.6 | ||||||||
Net income attributable to Trinity Industries, Inc. – diluted | $ 334.2 | $ 772.7 | $ 656.8 | ||||||||
Net income attributable to Trinity Industries, Inc - diluted (shares) | 148.6 | 152.2 | 156.7 | ||||||||
Net income attributable to Trinity Industries, Inc. - diluted (EPS) | $ 0.44 | $ 0.55 | $ 0.62 | $ 0.64 | $ 1.30 | $ 1.31 | $ 1.33 | $ 1.13 | $ 2.25 | $ 5.08 | $ 4.19 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jun. 23, 2015USD ($) | Jun. 09, 2015USD ($) | Dec. 31, 2016USD ($)state | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)statelawsuitcounty | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 16, 2016briefs | Mar. 28, 2016briefs | Mar. 11, 2015guard_rail | Oct. 20, 2014crash_test |
Loss Contingencies [Line Items] | |||||||||||||||||
Revenues | $ 1,103,800,000 | $ 1,111,700,000 | $ 1,184,900,000 | $ 1,187,900,000 | $ 1,547,000,000 | $ 1,542,200,000 | $ 1,676,800,000 | $ 1,626,700,000 | $ 4,588,300,000 | $ 6,392,700,000 | $ 6,170,000,000 | ||||||
Percentage of consolidated revenues | 21.00% | ||||||||||||||||
Non-cancelable purchase obligations | 584,800,000 | $ 584,800,000 | |||||||||||||||
Accrued liabilities | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Total accrual | 10,300,000 | 10,300,000 | |||||||||||||||
Construction Products Group | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Revenues | 510,600,000 | 520,600,000 | $ 546,100,000 | ||||||||||||||
Rail Inland Barge and Energy Equipment Groups | Inventories | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Non-cancelable purchase obligations | $ 471,100,000 | $ 471,100,000 | |||||||||||||||
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 devices field measured (more than) | guard_rail | 1,000 | ||||||||||||||||
Highway products litigation | ET Plus | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Number of states that have removed product from qualified products list | state | 29 | 29 | |||||||||||||||
Highway products litigation | ET Plus | UNITED STATES | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Revenues | $ 4,100,000 | ||||||||||||||||
Highway products litigation | ET Plus | UNITED STATES | Construction Products Group | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Revenues | $ 0 | ||||||||||||||||
Environmental and workplace matters | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Total accrual | $ 3,700,000 | 3,700,000 | |||||||||||||||
Joshua Harman, False Claims Act | Highway products litigation | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Damages awarded by jury verdict | $ 175,000,000 | ||||||||||||||||
Judgment entered | 682,400,000 | ||||||||||||||||
Damages awarded by jury verdict, automatically trebled under the Act | 525,000,000 | ||||||||||||||||
Judgment entered, civil penalties | 138,400,000 | ||||||||||||||||
Judgment entered, costs and attorney fees | $ 19,000,000 | ||||||||||||||||
Supersedeas bond posted | $ 686,000,000 | ||||||||||||||||
Supersedeas bond, initial annual premium | $ 3,700,000 | ||||||||||||||||
Number of amicus curiae briefs filed seeking judgment reversal | briefs | 6 | ||||||||||||||||
Number of amicus curiae briefs filed in opposition of Company's appeal | briefs | 6 | ||||||||||||||||
Total accrual | 0 | 0 | |||||||||||||||
State, county, and municipal actions | Highway products litigation | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Total accrual | 0 | $ 0 | |||||||||||||||
Number of additional state qui tam actions filed (in lawsuits) | lawsuit | 9 | ||||||||||||||||
Number of class action lawsuits | lawsuit | 3 | ||||||||||||||||
Number of counties claimed as parties to class action suit | county | 101 | ||||||||||||||||
Compensatory damages sought | $ 400,000,000 | ||||||||||||||||
Punitive damages sought | 100,000,000 | ||||||||||||||||
Shareholder class actions | Highway products litigation | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Total accrual | 0 | 0 | |||||||||||||||
Minimum | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Range of reasonably possible losses | 3,200,000 | 3,200,000 | |||||||||||||||
Maximum | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Range of reasonably possible losses | $ 20,200,000 | $ 20,200,000 |
Financial Statements for Gua106
Financial Statements for Guarantors of the Senior Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | $ 1,103.8 | $ 1,111.7 | $ 1,184.9 | $ 1,187.9 | $ 1,547 | $ 1,542.2 | $ 1,676.8 | $ 1,626.7 | $ 4,588.3 | $ 6,392.7 | $ 6,170 |
Cost of revenues | 841.2 | 827.3 | 897.7 | 889.9 | 1,116.1 | 1,109.4 | 1,219.6 | 1,211.1 | 3,456.1 | 4,656.2 | 4,619.8 |
Selling, engineering, and administrative expenses | 101.9 | 102.3 | 106.7 | 96.5 | 137.1 | 126.6 | 114.4 | 98.3 | 407.4 | 476.4 | 403.6 |
Gains on dispositions on property | 2.9 | 1.5 | 11.1 | 1.9 | 64.2 | 58.7 | 40.1 | 15.8 | 17.4 | 178.8 | 104.4 |
Cost of revenues and operating costs | 3,846.1 | 4,953.8 | 4,919 | ||||||||
Operating Profit (Loss) | 163.6 | 183.6 | 191.6 | 203.4 | 358 | 364.9 | 382.9 | 333.1 | 742.2 | 1,438.9 | 1,251 |
Other (income) expense | 175.4 | 186.9 | 186.9 | ||||||||
Equity in earnings of subsidiaries, net of taxes | 0 | 0 | 0 | ||||||||
Income before income taxes | 566.8 | 1,252 | 1,064.1 | ||||||||
Provision (benefit) for income taxes | 202.1 | 426 | 354.8 | ||||||||
Net income | 74.2 | 89.6 | 98.8 | 102.1 | 204 | 212.2 | 220.8 | 189 | 364.7 | 826 | 709.3 |
Net income attributable to noncontrolling interest | 21.1 | 29.5 | 31.1 | ||||||||
Net income attributable to controlling interest | $ 67.6 | $ 84.2 | $ 94.6 | $ 97.2 | $ 200 | $ 204.3 | $ 212 | $ 180.2 | 343.6 | 796.5 | 678.2 |
Other comprehensive income | 5 | (0.5) | (31) | ||||||||
Comprehensive income | 369.7 | 825.5 | 678.3 | ||||||||
Comprehensive income attributable to noncontrolling interest | 24.2 | 32.5 | 34.1 | ||||||||
Comprehensive income attributable to controlling interest | 345.5 | 793 | 644.2 | ||||||||
Reportable legal entities | Parent | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Cost of revenues | (1.3) | (2) | 2.3 | ||||||||
Selling, engineering, and administrative expenses | 125.3 | 147 | 115.6 | ||||||||
Gains on dispositions on property | (0.5) | 2 | (1.4) | ||||||||
Cost of revenues and operating costs | 124.5 | 143 | 119.3 | ||||||||
Operating Profit (Loss) | (124.5) | (143) | (119.3) | ||||||||
Other (income) expense | (128.8) | (118.7) | (60.3) | ||||||||
Equity in earnings of subsidiaries, net of taxes | 387.5 | 920 | 741.7 | ||||||||
Income before income taxes | 391.8 | 895.7 | 682.7 | ||||||||
Provision (benefit) for income taxes | 48.2 | 99.2 | 4.5 | ||||||||
Net income | 343.6 | 796.5 | 678.2 | ||||||||
Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to controlling interest | 343.6 | 796.5 | 678.2 | ||||||||
Other comprehensive income | 0.6 | (6) | (33.9) | ||||||||
Comprehensive income | 344.2 | 790.5 | 644.3 | ||||||||
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to controlling interest | 344.2 | 790.5 | 644.3 | ||||||||
Reportable legal entities | Combined Guarantor Subsidiaries | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 2,880.8 | 4,668.8 | 4,290.3 | ||||||||
Cost of revenues | 2,331.5 | 3,594.9 | 3,345.5 | ||||||||
Selling, engineering, and administrative expenses | 121.8 | 153.3 | 124.9 | ||||||||
Gains on dispositions on property | 11.1 | 86 | 41.3 | ||||||||
Cost of revenues and operating costs | 2,442.2 | 3,662.2 | 3,429.1 | ||||||||
Operating Profit (Loss) | 438.6 | 1,006.6 | 861.2 | ||||||||
Other (income) expense | 67.4 | 68.6 | 57.1 | ||||||||
Equity in earnings of subsidiaries, net of taxes | 91.8 | 217.4 | 191.8 | ||||||||
Income before income taxes | 463 | 1,155.4 | 995.9 | ||||||||
Provision (benefit) for income taxes | 154.3 | 353.2 | 297.2 | ||||||||
Net income | 308.7 | 802.2 | 698.7 | ||||||||
Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to controlling interest | 308.7 | 802.2 | 698.7 | ||||||||
Other comprehensive income | (0.4) | 0 | (8.5) | ||||||||
Comprehensive income | 308.3 | 802.2 | 690.2 | ||||||||
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to controlling interest | 308.3 | 802.2 | 690.2 | ||||||||
Reportable legal entities | Combined Non-Guarantor Subsidiaries | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 2,475.3 | 2,642.6 | 2,700.2 | ||||||||
Cost of revenues | 1,921.7 | 2,005.3 | 2,098.5 | ||||||||
Selling, engineering, and administrative expenses | 160.3 | 176.1 | 163.1 | ||||||||
Gains on dispositions on property | 6.8 | 90.8 | 64.5 | ||||||||
Cost of revenues and operating costs | 2,075.2 | 2,090.6 | 2,197.1 | ||||||||
Operating Profit (Loss) | 400.1 | 552 | 503.1 | ||||||||
Other (income) expense | 236.8 | 237 | 190.1 | ||||||||
Equity in earnings of subsidiaries, net of taxes | 0 | 0 | 0 | ||||||||
Income before income taxes | 163.3 | 315 | 313 | ||||||||
Provision (benefit) for income taxes | 56.8 | 12.5 | 50.6 | ||||||||
Net income | 106.5 | 302.5 | 262.4 | ||||||||
Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to controlling interest | 106.5 | 302.5 | 262.4 | ||||||||
Other comprehensive income | 4.8 | 5.5 | 11.4 | ||||||||
Comprehensive income | 111.3 | 308 | 273.8 | ||||||||
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to controlling interest | 111.3 | 308 | 273.8 | ||||||||
Eliminations | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | (767.8) | (918.7) | (820.5) | ||||||||
Cost of revenues | (795.8) | (942) | (826.5) | ||||||||
Selling, engineering, and administrative expenses | 0 | 0 | 0 | ||||||||
Gains on dispositions on property | 0 | 0 | 0 | ||||||||
Cost of revenues and operating costs | (795.8) | (942) | (826.5) | ||||||||
Operating Profit (Loss) | 28 | 23.3 | 6 | ||||||||
Other (income) expense | 0 | 0 | 0 | ||||||||
Equity in earnings of subsidiaries, net of taxes | (479.3) | (1,137.4) | (933.5) | ||||||||
Income before income taxes | (451.3) | (1,114.1) | (927.5) | ||||||||
Provision (benefit) for income taxes | (57.2) | (38.9) | 2.5 | ||||||||
Net income | (394.1) | (1,075.2) | (930) | ||||||||
Net income attributable to noncontrolling interest | 21.1 | 29.5 | 31.1 | ||||||||
Net income attributable to controlling interest | (415.2) | (1,104.7) | (961.1) | ||||||||
Other comprehensive income | 0 | 0 | 0 | ||||||||
Comprehensive income | (394.1) | (1,075.2) | (930) | ||||||||
Comprehensive income attributable to noncontrolling interest | 24.2 | 32.5 | 34.1 | ||||||||
Comprehensive income attributable to controlling interest | $ (418.3) | $ (1,107.7) | $ (964.1) |
Financial Statements for Gua107
Financial Statements for Guarantors of the Senior Notes (Details 2) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | |||||
Cash and cash equivalents | $ 563.4 | $ 786 | $ 786 | $ 887.9 | $ 428.5 |
Short-term marketable securities | 234.7 | 84.9 | |||
Receivables, net of allowance | 378.7 | 369.9 | |||
Income tax receivable | 102.1 | 94.9 | |||
Inventory | 665.8 | 943.1 | |||
Property, plant, and equipment, net | 5,966.8 | 5,348 | |||
Investments in and advances to subsidiaries | 0 | 0 | |||
Restricted cash | 178.2 | 195.8 | |||
Goodwill and other assets | 1,035.6 | 1,063.3 | |||
Total assets | 9,125.3 | 8,885.9 | 8,695.3 | ||
Liabilities: | |||||
Accounts payable | 156.1 | 216.8 | |||
Accrued liabilities | 426.1 | 529.6 | |||
Total debt | 3,056.6 | 3,195.4 | |||
Deferred income | 23.5 | 27.1 | |||
Deferred income taxes | 1,072.9 | 752.2 | |||
Advances from subsidiaries | 0 | 0 | |||
Other liabilities | 79 | 116.1 | |||
Total stockholders' equity | 4,311.1 | 4,048.7 | 3,397.4 | 2,749.1 | |
Total liabilities and stockholders' equity | 9,125.3 | 8,885.9 | |||
Reportable legal entities | Parent | |||||
Assets: | |||||
Cash and cash equivalents | 537.9 | 768.3 | 768.3 | 827.7 | 409.7 |
Short-term marketable securities | 234.7 | 84.9 | |||
Receivables, net of allowance | 1.1 | 0.1 | |||
Income tax receivable | 99.9 | 94.9 | |||
Inventory | 0 | 0 | |||
Property, plant, and equipment, net | 48.8 | 37.7 | |||
Investments in and advances to subsidiaries | 4,862.4 | 6,262.9 | |||
Restricted cash | 0 | 0 | |||
Goodwill and other assets | 150.8 | 178.8 | |||
Total assets | 5,935.6 | 7,427.6 | |||
Liabilities: | |||||
Accounts payable | 5.7 | 9.9 | |||
Accrued liabilities | 200 | 224.9 | |||
Total debt | 818.7 | 800.6 | |||
Deferred income | 0 | 0 | |||
Deferred income taxes | 78.6 | 31.2 | |||
Advances from subsidiaries | 458.2 | 2,212.2 | |||
Other liabilities | 63.3 | 100.1 | |||
Total stockholders' equity | 4,311.1 | 4,048.7 | |||
Total liabilities and stockholders' equity | 5,935.6 | 7,427.6 | |||
Reportable legal entities | Combined Guarantor Subsidiaries | |||||
Assets: | |||||
Cash and cash equivalents | 5.2 | 1.7 | 1.7 | 11.1 | 2.1 |
Short-term marketable securities | 0 | 0 | |||
Receivables, net of allowance | 201.1 | 196.3 | |||
Income tax receivable | 0 | 0 | |||
Inventory | 409.2 | 634.1 | |||
Property, plant, and equipment, net | 2,329.6 | 1,597 | |||
Investments in and advances to subsidiaries | 2,441.1 | 3,633.1 | |||
Restricted cash | 0 | 0.2 | |||
Goodwill and other assets | 584.9 | 579.8 | |||
Total assets | 5,971.1 | 6,642.2 | |||
Liabilities: | |||||
Accounts payable | 45.2 | 62.9 | |||
Accrued liabilities | 84.2 | 137.3 | |||
Total debt | 32 | 35.6 | |||
Deferred income | 21.9 | 25.4 | |||
Deferred income taxes | 984.9 | 711.3 | |||
Advances from subsidiaries | 11.5 | 0 | |||
Other liabilities | 13.5 | 13.6 | |||
Total stockholders' equity | 4,777.9 | 5,656.1 | |||
Total liabilities and stockholders' equity | 5,971.1 | 6,642.2 | |||
Reportable legal entities | Combined Non-Guarantor Subsidiaries | |||||
Assets: | |||||
Cash and cash equivalents | 51.3 | 51.1 | 51.1 | 89.4 | 44.1 |
Short-term marketable securities | 0 | 0 | |||
Receivables, net of allowance | 176.5 | 173.5 | |||
Income tax receivable | 2.2 | 0 | |||
Inventory | 266.5 | 325.4 | |||
Property, plant, and equipment, net | 4,047.6 | 4,204.3 | |||
Investments in and advances to subsidiaries | 470 | 908.5 | |||
Restricted cash | 147.1 | 160.5 | |||
Goodwill and other assets | 301.2 | 304.7 | |||
Total assets | 5,462.4 | 6,128 | |||
Liabilities: | |||||
Accounts payable | 105.7 | 144.3 | |||
Accrued liabilities | 143.2 | 168.5 | |||
Total debt | 2,205.9 | 2,359.2 | |||
Deferred income | 1.6 | 1.7 | |||
Deferred income taxes | 9.1 | 9.4 | |||
Advances from subsidiaries | 0 | 0 | |||
Other liabilities | 2.2 | 2.4 | |||
Total stockholders' equity | 2,994.7 | 3,442.5 | |||
Total liabilities and stockholders' equity | 5,462.4 | 6,128 | |||
Eliminations | |||||
Assets: | |||||
Cash and cash equivalents | (31) | (35.1) | $ (35.1) | $ (40.3) | $ (27.4) |
Short-term marketable securities | 0 | 0 | |||
Receivables, net of allowance | 0 | 0 | |||
Income tax receivable | 0 | 0 | |||
Inventory | (9.9) | (16.4) | |||
Property, plant, and equipment, net | (459.2) | (491) | |||
Investments in and advances to subsidiaries | (7,773.5) | (10,804.5) | |||
Restricted cash | 31.1 | 35.1 | |||
Goodwill and other assets | (1.3) | 0 | |||
Total assets | (8,243.8) | (11,311.9) | |||
Liabilities: | |||||
Accounts payable | (0.5) | (0.3) | |||
Accrued liabilities | (1.3) | (1.1) | |||
Total debt | 0 | 0 | |||
Deferred income | 0 | 0 | |||
Deferred income taxes | 0.3 | 0.3 | |||
Advances from subsidiaries | (469.7) | (2,212.2) | |||
Other liabilities | 0 | 0 | |||
Total stockholders' equity | (7,772.6) | (9,098.6) | |||
Total liabilities and stockholders' equity | $ (8,243.8) | $ (11,311.9) |
Financial Statements for Gua108
Financial Statements for Guarantors of the Senior Notes (Details 3) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | |||||||||||
Net income | $ 74.2 | $ 89.6 | $ 98.8 | $ 102.1 | $ 204 | $ 212.2 | $ 220.8 | $ 189 | $ 364.7 | $ 826 | $ 709.3 |
Equity in earnings of subsidiaries, net of taxes | 0 | 0 | 0 | ||||||||
Other | 725.5 | 113.7 | 108.9 | ||||||||
Net cash provided by operating activities - continuing operations | 1,090.2 | 939.7 | 818.2 | ||||||||
Net cash provided by operating activities - discontinued | 0 | 0 | 1 | ||||||||
Net cash provided (required) by operating activities | 1,090.2 | 939.7 | 819.2 | ||||||||
Investing activities: | |||||||||||
(Increase) decrease in short-term marketable securities | (149.8) | (9.9) | 74.7 | ||||||||
Proceeds from railcar lease fleet sales owned more than one year | 37.7 | 514.6 | 265.8 | ||||||||
Proceeds from disposition of property and other assets | 16 | 8.2 | 23 | ||||||||
Capital expenditures – leasing | (799.1) | (833.8) | (245.3) | ||||||||
Capital expenditures – manufacturing and other | (134.3) | (196) | (219.3) | ||||||||
Acquisitions, net of cash acquired | 0 | (46.2) | (714.4) | ||||||||
(Increase) decrease in investment in partially-owned subsidiaries | 0 | 0 | 0 | ||||||||
Divestitures | 0 | 51.3 | 0 | ||||||||
Other | 6.8 | 0.5 | 0.8 | ||||||||
Net cash required by investing activities - continuing operations | (1,022.7) | (511.3) | (814.7) | ||||||||
Net cash provided by investing activities - discontinued | 0 | 0 | 0 | ||||||||
Net cash provided (required) by investing activities | (1,022.7) | (511.3) | (814.7) | ||||||||
Financing activities: | |||||||||||
Proceeds from issuance of common stock, net | 0 | 0.3 | 0.6 | ||||||||
Excess tax benefits from stock-based compensation | 1 | 13.3 | 24.4 | ||||||||
Payments to retire debt | (162.5) | (587.2) | (186.6) | ||||||||
Proceeds from issuance of debt | 0 | 242.4 | 727.3 | ||||||||
(Increase) decrease in restricted cash | 17.6 | 48.3 | 1 | ||||||||
Shares repurchased | (34.7) | (115) | (36.5) | ||||||||
Dividends paid to common shareholders | (66.7) | (64.9) | (54.4) | ||||||||
Purchase of shares to satisfy employee tax on vested stock | (16.3) | (27.5) | (38.3) | ||||||||
Contributions from noncontrolling interest | 0 | 0 | 49.6 | ||||||||
Contributions from controlling interest in partially-owned leasing subsidiaries | 0 | 0 | 0 | ||||||||
Distributions to noncontrolling interest | (26.4) | (39.2) | (28.2) | ||||||||
Distributions to controlling interest in partially-owned leasing subsidiaries | 0 | 0 | 0 | ||||||||
Change in intercompany financing between entities | 0 | 0 | 0 | ||||||||
Other | (2.1) | (0.8) | (2.5) | ||||||||
Net cash provided (required) by financing activities - continuing | (290.1) | (530.3) | 456.4 | ||||||||
Net cash provided (required) by financing activities - discontinued | 0 | 0 | (1.5) | ||||||||
Net cash provided (required) by financing activities | (290.1) | (530.3) | 454.9 | ||||||||
Net increase (decrease) in cash and cash equivalents | (222.6) | (101.9) | 459.4 | ||||||||
Cash and cash equivalents at beginning of period | 786 | 786 | 887.9 | 786 | 887.9 | 428.5 | |||||
Cash and cash equivalents at end of period | 563.4 | 786 | 786 | 563.4 | 786 | 887.9 | |||||
Reportable legal entities | Parent | |||||||||||
Operating activities: | |||||||||||
Net income | 343.6 | 796.5 | 678.2 | ||||||||
Equity in earnings of subsidiaries, net of taxes | (387.5) | (920) | (741.7) | ||||||||
Other | 64.5 | 57.8 | (26.5) | ||||||||
Net cash provided by operating activities - continuing operations | 20.6 | (65.7) | (90) | ||||||||
Net cash provided by operating activities - discontinued | 0 | 0 | 0 | ||||||||
Net cash provided (required) by operating activities | 20.6 | (65.7) | (90) | ||||||||
Investing activities: | |||||||||||
(Increase) decrease in short-term marketable securities | (149.8) | (9.9) | 74.7 | ||||||||
Proceeds from railcar lease fleet sales owned more than one year | 0 | 0 | 0 | ||||||||
Proceeds from disposition of property and other assets | 0 | 0 | 0.3 | ||||||||
Capital expenditures – leasing | 0 | 0 | 0 | ||||||||
Capital expenditures – manufacturing and other | (18) | (14.5) | (8.3) | ||||||||
Acquisitions, net of cash acquired | 0 | 0 | 0 | ||||||||
(Increase) decrease in investment in partially-owned subsidiaries | 0 | 0 | 0 | ||||||||
Divestitures | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0.9 | ||||||||
Net cash required by investing activities - continuing operations | (167.8) | (24.4) | 67.6 | ||||||||
Net cash provided by investing activities - discontinued | 0 | 0 | 0 | ||||||||
Net cash provided (required) by investing activities | (167.8) | (24.4) | 67.6 | ||||||||
Financing activities: | |||||||||||
Proceeds from issuance of common stock, net | 0 | 0.3 | 0.6 | ||||||||
Excess tax benefits from stock-based compensation | 1 | 13.3 | 24.4 | ||||||||
Payments to retire debt | 0 | 0 | (0.5) | ||||||||
Proceeds from issuance of debt | 0 | (1.5) | 395.7 | ||||||||
(Increase) decrease in restricted cash | 0 | 0 | 0 | ||||||||
Shares repurchased | (34.7) | (115) | (36.5) | ||||||||
Dividends paid to common shareholders | (66.7) | (64.9) | (54.4) | ||||||||
Purchase of shares to satisfy employee tax on vested stock | (16.3) | (27.5) | (38.3) | ||||||||
Contributions from noncontrolling interest | 0 | 0 | 0 | ||||||||
Contributions from controlling interest in partially-owned leasing subsidiaries | 0 | 0 | 0 | ||||||||
Distributions to noncontrolling interest | 0 | 0 | 0 | ||||||||
Distributions to controlling interest in partially-owned leasing subsidiaries | 0 | 0 | 0 | ||||||||
Change in intercompany financing between entities | 33.5 | 226 | 149.4 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Net cash provided (required) by financing activities - continuing | (83.2) | 30.7 | 440.4 | ||||||||
Net cash provided (required) by financing activities - discontinued | 0 | 0 | 0 | ||||||||
Net cash provided (required) by financing activities | (83.2) | 30.7 | 440.4 | ||||||||
Net increase (decrease) in cash and cash equivalents | (230.4) | (59.4) | 418 | ||||||||
Cash and cash equivalents at beginning of period | 768.3 | 768.3 | 827.7 | 768.3 | 827.7 | 409.7 | |||||
Cash and cash equivalents at end of period | 537.9 | 768.3 | 768.3 | 537.9 | 768.3 | 827.7 | |||||
Reportable legal entities | Combined Guarantor Subsidiaries | |||||||||||
Operating activities: | |||||||||||
Net income | 308.7 | 802.2 | 698.7 | ||||||||
Equity in earnings of subsidiaries, net of taxes | (91.8) | (217.4) | (191.8) | ||||||||
Other | 482.1 | (33.1) | (99) | ||||||||
Net cash provided by operating activities - continuing operations | 699 | 551.7 | 407.9 | ||||||||
Net cash provided by operating activities - discontinued | 0 | 0 | 0 | ||||||||
Net cash provided (required) by operating activities | 699 | 551.7 | 407.9 | ||||||||
Investing activities: | |||||||||||
(Increase) decrease in short-term marketable securities | 0 | 0 | 0 | ||||||||
Proceeds from railcar lease fleet sales owned more than one year | 27.3 | 290.6 | 549.2 | ||||||||
Proceeds from disposition of property and other assets | 4.1 | 1.9 | 0 | ||||||||
Capital expenditures – leasing | (798.7) | (821.6) | (222.8) | ||||||||
Capital expenditures – manufacturing and other | (8.6) | (39.1) | (58.3) | ||||||||
Acquisitions, net of cash acquired | 0 | 0 | (595.6) | ||||||||
(Increase) decrease in investment in partially-owned subsidiaries | 17.1 | 24.8 | (4.5) | ||||||||
Divestitures | 0 | 0 | 0 | ||||||||
Other | 0.8 | 0.2 | (0.8) | ||||||||
Net cash required by investing activities - continuing operations | (758) | (543.2) | (332.8) | ||||||||
Net cash provided by investing activities - discontinued | 0 | 0 | 0 | ||||||||
Net cash provided (required) by investing activities | (758) | (543.2) | (332.8) | ||||||||
Financing activities: | |||||||||||
Proceeds from issuance of common stock, net | 0 | 0 | 0 | ||||||||
Excess tax benefits from stock-based compensation | 0 | 0 | 0 | ||||||||
Payments to retire debt | (3.6) | (3.2) | (3.1) | ||||||||
Proceeds from issuance of debt | 0 | 0 | 0 | ||||||||
(Increase) decrease in restricted cash | 0.2 | (0.2) | 0 | ||||||||
Shares repurchased | 0 | 0 | 0 | ||||||||
Dividends paid to common shareholders | 0 | 0 | 0 | ||||||||
Purchase of shares to satisfy employee tax on vested stock | 0 | 0 | 0 | ||||||||
Contributions from noncontrolling interest | 0 | 0 | 0 | ||||||||
Contributions from controlling interest in partially-owned leasing subsidiaries | 0 | 0 | 0 | ||||||||
Distributions to noncontrolling interest | 0 | 0 | 0 | ||||||||
Distributions to controlling interest in partially-owned leasing subsidiaries | 0 | 0 | 0 | ||||||||
Change in intercompany financing between entities | 65.9 | (14.5) | (62.3) | ||||||||
Other | 0 | 0 | (0.7) | ||||||||
Net cash provided (required) by financing activities - continuing | 62.5 | (17.9) | (66.1) | ||||||||
Net cash provided (required) by financing activities - discontinued | 0 | 0 | 0 | ||||||||
Net cash provided (required) by financing activities | 62.5 | (17.9) | (66.1) | ||||||||
Net increase (decrease) in cash and cash equivalents | 3.5 | (9.4) | 9 | ||||||||
Cash and cash equivalents at beginning of period | 1.7 | 1.7 | 11.1 | 1.7 | 11.1 | 2.1 | |||||
Cash and cash equivalents at end of period | 5.2 | 1.7 | 1.7 | 5.2 | 1.7 | 11.1 | |||||
Reportable legal entities | Combined Non-Guarantor Subsidiaries | |||||||||||
Operating activities: | |||||||||||
Net income | 106.5 | 302.5 | 262.4 | ||||||||
Equity in earnings of subsidiaries, net of taxes | 0 | 0 | 0 | ||||||||
Other | 212.3 | 146.4 | 240.1 | ||||||||
Net cash provided by operating activities - continuing operations | 318.8 | 448.9 | 502.5 | ||||||||
Net cash provided by operating activities - discontinued | 0 | 0 | 1 | ||||||||
Net cash provided (required) by operating activities | 318.8 | 448.9 | 503.5 | ||||||||
Investing activities: | |||||||||||
(Increase) decrease in short-term marketable securities | 0 | 0 | 0 | ||||||||
Proceeds from railcar lease fleet sales owned more than one year | 10.4 | 267.2 | 140.3 | ||||||||
Proceeds from disposition of property and other assets | 11.9 | 6.3 | 22.7 | ||||||||
Capital expenditures – leasing | (0.4) | (55.4) | (446.2) | ||||||||
Capital expenditures – manufacturing and other | (107.7) | (142.4) | (152.7) | ||||||||
Acquisitions, net of cash acquired | 0 | (46.2) | (118.8) | ||||||||
(Increase) decrease in investment in partially-owned subsidiaries | 0 | 0 | 0 | ||||||||
Divestitures | 0 | 51.3 | 0 | ||||||||
Other | 6 | 0.3 | 0.7 | ||||||||
Net cash required by investing activities - continuing operations | (79.8) | 81.1 | (554) | ||||||||
Net cash provided by investing activities - discontinued | 0 | 0 | 0 | ||||||||
Net cash provided (required) by investing activities | (79.8) | 81.1 | (554) | ||||||||
Financing activities: | |||||||||||
Proceeds from issuance of common stock, net | 0 | 0 | 0 | ||||||||
Excess tax benefits from stock-based compensation | 0 | 0 | 0 | ||||||||
Payments to retire debt | (158.9) | (584) | (183) | ||||||||
Proceeds from issuance of debt | 0 | 243.9 | 331.6 | ||||||||
(Increase) decrease in restricted cash | 13.4 | 43.3 | 13.9 | ||||||||
Shares repurchased | 0 | 0 | 0 | ||||||||
Dividends paid to common shareholders | 0 | 0 | 0 | ||||||||
Purchase of shares to satisfy employee tax on vested stock | 0 | 0 | 0 | ||||||||
Contributions from noncontrolling interest | 0 | 0 | 49.6 | ||||||||
Contributions from controlling interest in partially-owned leasing subsidiaries | 0 | 0 | 4.5 | ||||||||
Distributions to noncontrolling interest | (26.4) | (39.2) | (28.2) | ||||||||
Distributions to controlling interest in partially-owned leasing subsidiaries | (17.1) | (24.8) | 0 | ||||||||
Change in intercompany financing between entities | (47.7) | (206.7) | (89.3) | ||||||||
Other | (2.1) | (0.8) | (1.8) | ||||||||
Net cash provided (required) by financing activities - continuing | (238.8) | (568.3) | 97.3 | ||||||||
Net cash provided (required) by financing activities - discontinued | 0 | 0 | (1.5) | ||||||||
Net cash provided (required) by financing activities | (238.8) | (568.3) | 95.8 | ||||||||
Net increase (decrease) in cash and cash equivalents | 0.2 | (38.3) | 45.3 | ||||||||
Cash and cash equivalents at beginning of period | 51.1 | 51.1 | 89.4 | 51.1 | 89.4 | 44.1 | |||||
Cash and cash equivalents at end of period | 51.3 | 51.1 | 51.1 | 51.3 | 51.1 | 89.4 | |||||
Eliminations | |||||||||||
Operating activities: | |||||||||||
Net income | (394.1) | (1,075.2) | (930) | ||||||||
Equity in earnings of subsidiaries, net of taxes | 479.3 | 1,137.4 | 933.5 | ||||||||
Other | (33.4) | (57.4) | (5.7) | ||||||||
Net cash provided by operating activities - continuing operations | 51.8 | 4.8 | (2.2) | ||||||||
Net cash provided by operating activities - discontinued | 0 | 0 | 0 | ||||||||
Net cash provided (required) by operating activities | 51.8 | 4.8 | (2.2) | ||||||||
Investing activities: | |||||||||||
(Increase) decrease in short-term marketable securities | 0 | 0 | 0 | ||||||||
Proceeds from railcar lease fleet sales owned more than one year | 0 | (43.2) | (423.7) | ||||||||
Proceeds from disposition of property and other assets | 0 | 0 | 0 | ||||||||
Capital expenditures – leasing | 0 | 43.2 | 423.7 | ||||||||
Capital expenditures – manufacturing and other | 0 | 0 | 0 | ||||||||
Acquisitions, net of cash acquired | 0 | 0 | 0 | ||||||||
(Increase) decrease in investment in partially-owned subsidiaries | (17.1) | (24.8) | 4.5 | ||||||||
Divestitures | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Net cash required by investing activities - continuing operations | (17.1) | (24.8) | 4.5 | ||||||||
Net cash provided by investing activities - discontinued | 0 | 0 | 0 | ||||||||
Net cash provided (required) by investing activities | (17.1) | (24.8) | 4.5 | ||||||||
Financing activities: | |||||||||||
Proceeds from issuance of common stock, net | 0 | 0 | 0 | ||||||||
Excess tax benefits from stock-based compensation | 0 | 0 | 0 | ||||||||
Payments to retire debt | 0 | 0 | 0 | ||||||||
Proceeds from issuance of debt | 0 | 0 | 0 | ||||||||
(Increase) decrease in restricted cash | 4 | 5.2 | (12.9) | ||||||||
Shares repurchased | 0 | 0 | 0 | ||||||||
Dividends paid to common shareholders | 0 | 0 | 0 | ||||||||
Purchase of shares to satisfy employee tax on vested stock | 0 | 0 | 0 | ||||||||
Contributions from noncontrolling interest | 0 | 0 | 0 | ||||||||
Contributions from controlling interest in partially-owned leasing subsidiaries | 0 | 0 | (4.5) | ||||||||
Distributions to noncontrolling interest | 0 | 0 | 0 | ||||||||
Distributions to controlling interest in partially-owned leasing subsidiaries | 17.1 | 24.8 | 0 | ||||||||
Change in intercompany financing between entities | (51.7) | (4.8) | 2.2 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Net cash provided (required) by financing activities - continuing | (30.6) | 25.2 | (15.2) | ||||||||
Net cash provided (required) by financing activities - discontinued | 0 | 0 | 0 | ||||||||
Net cash provided (required) by financing activities | (30.6) | 25.2 | (15.2) | ||||||||
Net increase (decrease) in cash and cash equivalents | 4.1 | 5.2 | (12.9) | ||||||||
Cash and cash equivalents at beginning of period | $ (35.1) | (35.1) | $ (40.3) | (35.1) | (40.3) | (27.4) | |||||
Cash and cash equivalents at end of period | $ (31) | $ (35.1) | $ (35.1) | $ (31) | $ (35.1) | $ (40.3) |
Financial Statements for Gua109
Financial Statements for Guarantors of the Senior Notes (Details Textual) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | |||
Restricted cash | $ 178.2 | $ 195.8 | |
Assets | 9,125.3 | 8,885.9 | $ 8,695.3 |
Non-US | Combined Non-Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Assets | 349.4 | 359 | |
Secured debt | Combined Non-Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net book value pledged as collateral | 3,300.9 | 3,437.1 | |
Capital lease obligations | Combined Non-Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net book value pledged as collateral | 68 | 71.2 | |
Reportable legal entities | Combined Non-Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Restricted cash | 147.1 | 160.5 | |
Assets | $ 5,462.4 | $ 6,128 |
Selected Quarterly Financial110
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||||||||||
Total revenues | $ 1,103.8 | $ 1,111.7 | $ 1,184.9 | $ 1,187.9 | $ 1,547 | $ 1,542.2 | $ 1,676.8 | $ 1,626.7 | $ 4,588.3 | $ 6,392.7 | $ 6,170 |
Cost of revenues: | |||||||||||
Total cost of revenues | 841.2 | 827.3 | 897.7 | 889.9 | 1,116.1 | 1,109.4 | 1,219.6 | 1,211.1 | 3,456.1 | 4,656.2 | 4,619.8 |
Selling, engineering, and administrative expenses | 101.9 | 102.3 | 106.7 | 96.5 | 137.1 | 126.6 | 114.4 | 98.3 | 407.4 | 476.4 | 403.6 |
Gains on disposition of property | 2.9 | 1.5 | 11.1 | 1.9 | 64.2 | 58.7 | 40.1 | 15.8 | 17.4 | 178.8 | 104.4 |
Operating profit | 163.6 | 183.6 | 191.6 | 203.4 | 358 | 364.9 | 382.9 | 333.1 | 742.2 | 1,438.9 | 1,251 |
Net income | 74.2 | 89.6 | 98.8 | 102.1 | 204 | 212.2 | 220.8 | 189 | 364.7 | 826 | 709.3 |
Net income attributable to Trinity Industries, Inc. | $ 67.6 | $ 84.2 | $ 94.6 | $ 97.2 | $ 200 | $ 204.3 | $ 212 | $ 180.2 | $ 343.6 | $ 796.5 | $ 678.2 |
Net income attributable to Trinity Industries, Inc. per common share: | |||||||||||
Basic (in dollars per share) | $ 0.44 | $ 0.55 | $ 0.62 | $ 0.64 | $ 1.30 | $ 1.32 | $ 1.36 | $ 1.15 | $ 2.25 | $ 5.14 | $ 4.35 |
Diluted (in dollars per share) | $ 0.44 | $ 0.55 | $ 0.62 | $ 0.64 | $ 1.30 | $ 1.31 | $ 1.33 | $ 1.13 | $ 2.25 | $ 5.08 | $ 4.19 |
Manufacturing | |||||||||||
Revenues: | |||||||||||
Total revenues | $ 926 | $ 938.5 | $ 888.8 | $ 1,010.1 | $ 1,177.6 | $ 1,295.6 | $ 1,445.4 | $ 1,382.5 | $ 3,763.4 | $ 5,301.1 | $ 5,063.6 |
Cost of revenues: | |||||||||||
Total cost of revenues | 761.2 | 745.4 | 719.1 | 793.9 | 881.6 | 976 | 1,101.8 | 1,084.5 | 3,019.6 | 4,043.9 | 3,975.1 |
Selling, engineering, and administrative expenses | 231 | 271.4 | 235 | ||||||||
Leasing | |||||||||||
Revenues: | |||||||||||
Total revenues | 177.8 | 173.2 | 296.1 | 177.8 | 369.4 | 246.6 | 231.4 | 244.2 | 824.9 | 1,091.6 | 1,106.4 |
Cost of revenues: | |||||||||||
Total cost of revenues | $ 80 | $ 81.9 | $ 178.6 | $ 96 | $ 234.5 | $ 133.4 | $ 117.8 | $ 126.6 | 436.5 | 612.3 | 644.7 |
Selling, engineering, and administrative expenses | $ 45.4 | $ 52.4 | $ 49.6 |