TRINITY INDUSTRIES INC, 10-Q filed on 10/25/2012
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2012
Oct. 15, 2012
Document and Entity Information [Abstract]
 
 
Entity Registrant Name
TRINITY INDUSTRIES INC 
 
Entity Central Index Key
0000099780 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2012 
 
Amendment Flag
false 
 
Document Fiscal Year Focus
2012 
 
Document Fiscal Period
Q3 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
78,933,933 
Consolidated Statements of Operations (Unaudited) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Revenues:
 
 
 
 
Total revenues
$ 937.5 
$ 791.1 
$ 2,891.2 
$ 2,133.6 
Cost of revenues:
 
 
 
 
Total cost of revenues
755.6 
634.1 
2,333.5 
1,703.3 
Selling, engineering, and administrative expenses:
 
 
 
 
Total selling, engineering, and administrative expenses
58.5 
53.5 
168.4 
151.3 
Gains on disposition of property, plant, and equipment:
 
 
 
 
Net gains on railcar lease fleet sales
17.0 
1.6 
22.3 
3.1 
Other
1.5 
0.3 
7.6 
4.2 
Total operating profit
141.9 
105.4 
419.2 
286.3 
Other (income) expense:
 
 
 
 
Interest income
(0.4)
(0.5)
(1.1)
(1.2)
Interest expense
47.8 
47.9 
143.6 
136.2 
Other, net
(1.4)
5.3 
(4.4)
4.2 
Other (income) expense, total
46.0 
52.7 
138.1 
139.2 
Income before income taxes
95.9 
52.7 
281.1 
147.1 
Provision for income taxes
32.8 
21.1 
98.2 
58.3 
Net income
63.1 
31.6 
182.9 
88.8 
Net income (loss) attributable to noncontrolling interest
(0.1)
(0.3)
(1.0)
2.7 
Net income attributable to Trinity Industries, Inc.
63.2 
31.9 
183.9 
86.1 
Net income attributable to Trinity Industries, Inc. per common share:
 
 
 
 
Basic
$ 0.80 
$ 0.40 
$ 2.30 
$ 1.07 
Diluted
$ 0.80 
$ 0.40 
$ 2.29 
$ 1.07 
Weighted average number of shares outstanding:
 
 
 
 
Basic
76.5 
77.7 
77.3 
77.4 
Diluted
76.7 
77.9 
77.5 
77.7 
Dividends declared per common share
$ 0.11 
$ 0.09 
$ 0.31 
$ 0.26 
Manufacturing
 
 
 
 
Revenues:
 
 
 
 
Total revenues
778.2 
643.7 
2,397.5 
1,738.2 
Cost of revenues:
 
 
 
 
Total cost of revenues
658.2 
548.4 
2,025.1 
1,478.3 
Selling, engineering, and administrative expenses:
 
 
 
 
Total selling, engineering, and administrative expenses
38.6 
35.8 
114.2 
103.2 
Leasing
 
 
 
 
Revenues:
 
 
 
 
Total revenues
159.3 
147.4 
493.7 
395.4 
Cost of revenues:
 
 
 
 
Total cost of revenues
84.3 
78.6 
269.8 
202.4 
Selling, engineering, and administrative expenses:
 
 
 
 
Total selling, engineering, and administrative expenses
7.5 
6.2 
20.9 
17.5 
Other
 
 
 
 
Cost of revenues:
 
 
 
 
Total cost of revenues
13.1 
7.1 
38.6 
22.6 
Selling, engineering, and administrative expenses:
 
 
 
 
Total selling, engineering, and administrative expenses
$ 12.4 
$ 11.5 
$ 33.3 
$ 30.6 
Consolidated Statements of Comprehensive Income (Unaudited) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Net income
$ 63.1 
$ 31.6 
$ 182.9 
$ 88.8 
Unrealized loss on derivative financial instruments:
 
 
 
 
Unrealized gain (loss) arising during the period
2.2 
(10.7)
5.2 
(8.9)
Reclassification adjustments for losses included in net income
2.3 
1.5 
6.8 
3.2 
Currency translation adjustment - reclassification adjustment for loss included in net income
0 
0 
1.1 
(0.1)
Funded status of pension liability - amortization of actuarial loss
0.8 
0 
2.5 
0 
Other comprehensive income (loss), before tax
5.3 
(9.2)
15.6 
(5.8)
Income tax expense (benefit) related to components of other comprehensive income (loss)
2.1 
(3.3)
6.1 
(2.2)
Other comprehensive income (loss), net of tax
3.2 
(5.9)
9.5 
(3.6)
Comprehensive income
66.3 
25.7 
192.4 
85.2 
Less: comprehensive income (loss) attributable to noncontrolling interest
0.2 
(1.0)
0 
2.4 
Comprehensive income attributable to Trinity Industries, Inc.
$ 66.1 
$ 26.7 
$ 192.4 
$ 82.8 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Assets
 
 
Cash and cash equivalents
$ 312.2 1
$ 351.1 
Receivables, net of allowance
423.5 1
384.3 
Income tax receivable
5.1 1
1.6 
Inventories:
 
 
Raw materials and supplies
400.3 1
324.8 
Work in process
180.5 1
125.6 
Finished goods
110.9 1
99.5 
Inventory, net
691.7 1
549.9 
Restricted cash, including TRIP Holdings of $59.0 and $74.6
234.8 1
240.3 
Property, plant, and equipment, at cost, including TRIP Holdings of $1,272.3 and $1,257.7
5,636.5 1
5,407.9 
Less accumulated depreciation, including TRIP Holdings of $145.2 and $122.7
(1,352.8)1
(1,228.4)
Property, plant and equipment, net
4,283.7 1
4,179.5 
Goodwill
229.8 1
225.9 
Other assets
238.3 1
188.4 
Total assets
6,419.1 1
6,121.0 
Liabilities and Stockholders' Equity
 
 
Accounts payable
212.6 1
207.4 
Accrued liabilities
478.1 1
421.3 
Debt:
 
 
Recourse, net of unamortized discount of $90.7 and $99.8
462.3 1
457.7 
Non-recourse:
 
 
Parent and wholly-owned subsidiaries
1,646.9 1
1,616.0 
TRIP Holdings
868.9 1
901.2 
Total debt
2,978.1 1
2,974.9 
Deferred income
37.0 1
38.7 
Deferred income taxes
543.0 1
434.7 
Other liabilities
83.3 1
95.7 
Total liabilities
4,332.1 1
4,172.7 
Stockholders' equity
 
 
Preferred stock - 1.5 shares authorized and unissued
0 1
0 
Common stock - 200.0 shares authorized
81.7 1
81.7 
Capital in excess of par value
643.2 1
626.5 
Retained earnings
1,474.0 1
1,314.7 
Accumulated other comprehensive loss
(125.5)1
(134.0)
Treasury stock
(70.9)1
(25.1)
Total stockholders' equity
2,002.5 1
1,863.8 
Noncontrolling interest
84.5 1
84.5 
Total stockholders' equity, including portion attributable to noncontrolling interest
2,087.0 1
1,948.3 
Total liabilities and stockholders' equity
$ 6,419.1 1
$ 6,121.0 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Restricted cash
$ 234.8 1
$ 240.3 
Property, plant, and equipment, at cost
5,636.5 1
5,407.9 
Less accumulated depreciation
(1,352.8)1
(1,228.4)
Unamortized discount on recourse debt
90.7 1
99.8 
Preferred stock, shares authorized
1.5 1
1.5 
Preferred stock, shares unissued
1.5 1
1.5 
Common stock, shares authorized
200.0 1
200.0 
TRIP Holdings
 
 
Restricted cash
59.0 1
74.6 
Property, plant, and equipment, at cost
1,272.3 1
1,257.7 
Less accumulated depreciation
$ (145.2)1
$ (122.7)
Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Operating activities:
 
 
Net income
$ 182.9 
$ 88.8 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
148.8 
144.3 
Stock-based compensation expense
20.4 
16.3 
Excess tax benefits from stock-based compensation
1.4 
(0.3)
Provision for deferred income taxes
92.4 
32.4 
Net gains on sales of railcars owned more than one year at the time of sale
(22.3)
(3.1)
Gain on disposition of property, plant, equipment, and other assets
(7.6)
(4.2)
Other
6.6 
8.3 
Changes in assets and liabilities:
 
 
(Increase) decrease in receivables
(38.8)
(79.3)
(Increase) decrease in income tax receivable
(3.5)
7.4 
(Increase) decrease in inventories
(141.3)
(208.8)
(Increase) decrease in other assets
(53.1)
(10.2)
Increase (decrease) in accounts payable
5.2 
78.6 
Increase (decrease) in accrued liabilities
63.6 
(30.0)
Increase (decrease) in other liabilities
(2.6)
15.9 
Net cash provided by operating activities
252.1 
56.1 
Investing activities:
 
 
(Increase) decrease in short-term marketable securities
0 
158.0 
Proceeds from sales of railcars owned more than one year at the time of sale
94.9 
17.8 
Proceeds from lease fleet sales - sale and leaseback
7.2 
0 
Proceeds from disposition of property, plant, equipment, and other assets
18.9 
6.8 
Capital expenditures - leasing, net of sold railcars owned one year or less
(266.3)
(213.6)
Capital expenditures - manufacturing and other
(67.4)
(52.1)
Acquisitions, net of cash acquired
(4.9)
(42.5)
Net cash required by investing activities
(217.6)
(125.6)
Financing activities:
 
 
Proceeds from issuance of common stock, net
2.1 
1.8 
Excess tax benefits from stock-based compensation
(1.4)
0.3 
Payments to retire debt - other
(123.4)
(1,068.5)
Proceeds from issuance of debt
117.4 
1,124.5 
Deferred loan issuance costs
0 
(21.1)
(Increase) decrease in restricted cash
5.5 
(22.3)
Shares repurchased
(45.2)
0 
Dividends paid to common shareholders
(23.1)
(20.0)
Other
(5.3)
(6.4)
Net cash required by financing activities
(73.4)
(11.7)
Net decrease in cash and cash equivalents
(38.9)
(81.2)
Cash and cash equivalents at beginning of period
351.1 
354.0 
Cash and cash equivalents at end of period
$ 312.2 1
$ 272.8 
Consolidated Statement of Stockholders' Equity (Unaudited) (USD $)
In Millions, except Share data
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, 2011
$ 1,948.3 
$ 81.7 
$ 626.5 
$ 1,314.7 
$ (134.0)
$ (25.1)
$ 1,863.8 
$ 84.5 
Beginning balance, Shares at Dec. 31, 2011
 
81,700,000 
 
 
 
(1,500,000)
 
 
Net income
182.9 
 
 
183.9 
 
 
183.9 
(1.0)
Other comprehensive income
9.5 
 
 
 
8.5 
 
8.5 
1.0 
Cash dividends on common stock
(24.6)
 
 
(24.6)
 
 
(24.6)
 
Restricted shares issued, net
17.0 
 
18.5 
 
 
(1.5)
17.0 
 
Restricted shares issued, net, Shares
 
 
 
 
 
400,000 
 
 
Shares repurchased
(45.2)
 
 
 
 
(45.2)
(45.2)
 
Shares repurchased, Shares
(1,834,221)
 
 
 
 
(1,800,000)
 
 
Stock options exercised
2.1 
 
0.6 
 
 
1.5 
2.1 
 
Stock options exercised, Shares
 
 
 
 
 
200,000 
 
 
Stock-based compensation expense
(2.4)
 
(2.4)
 
 
 
(2.4)
 
Other
(0.6)
 
 
 
 
(0.6)
(0.6)
 
Other, Shares
 
 
 
 
 
(100,000)
 
 
Ending balance at Sep. 30, 2012
$ 2,087.0 1
$ 81.7 
$ 643.2 
$ 1,474.0 
$ (125.5)
$ (70.9)
$ 2,002.5 
$ 84.5 
Ending balance, Shares at Sep. 30, 2012
 
81,700,000 
 
 
 
(2,800,000)
 
 
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies

Basis of Presentation

The foregoing consolidated financial statements are unaudited and have been prepared from the books and records of Trinity Industries, Inc. and its subsidiaries (“Trinity”, “Company”, “we”, or “our”) including its majority-owned subsidiary, TRIP Rail Holdings LLC (“TRIP Holdings”). In our opinion, all normal and recurring adjustments necessary for a fair presentation of the financial position of the Company as of September 30, 2012, and the results of operations for the three and nine month periods ended September 30, 2012 and 2011, and cash flows for the nine month periods ended September 30, 2012 and 2011, have been made in conformity with generally accepted accounting principles. Because of seasonal and other factors, the results of operations for the nine month period ended September 30, 2012 may not be indicative of expected results of operations for the year ending December 31, 2012. These interim financial statements and notes are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with the audited consolidated financial statements of the Company included in its Form 10-K for the year ended December 31, 2011.

Stockholders’ Equity

In September 2012, the Company’s Board of Directors authorized a new $200 million share repurchase program, effective October 1, 2012, which expires on December 31, 2014. The new program replaces the Company's prior program which expired on September 30, 2012. During the three and nine month periods ended September 30, 2012, the Company repurchased 141,992 shares and 1,834,221 shares, respectively, under the prior program at a cost of approximately $4.0 million and $45.2 million, respectively. No shares were repurchased under the prior program during the three and nine month periods ended September 30, 2011.

Financial Instruments

Financial instruments that potentially subject the Company to a concentration of credit risk are primarily cash investments, short-term marketable securities, and receivables. The carrying values of cash, receivables, and accounts payable are considered to be representative of their respective fair values. At September 30, 2012, one customer’s net receivable balance in our Energy Equipment Group, all within terms, accounted for approximately 22% of the consolidated net receivables balance outstanding.

Recent Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-05, “Comprehensive Income (ASC Topic 220): Presentation of Comprehensive Income,” (“ASU 2011-05”) which amended prior comprehensive income guidance. ASU 2011-05 became effective for public companies during the interim and annual periods beginning after December 15, 2011 with early adoption permitted. Accordingly, the Company adopted this new standard on January 1, 2012 by including the consolidated statement of comprehensive income with its consolidated financial statements and revising Note 15 Accumulated Other Comprehensive Loss. The adoption of ASU 2011-05 did not have an impact on the Company’s consolidated financial position, results of operations or cash flows as it only requires a change in reporting format with regard to components of other comprehensive income.

Reclassifications

Effective December 31, 2011, the Company adopted the emerging industry policy of recognizing revenue 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 by the lease fleet for one year or less at the time of sale. Sales of railcars from the lease fleet which have been owned by the lease fleet for more than one year are recognized as a net gain or loss from the disposal of a long-term asset. Prior year reported balances have been reclassified to conform to this policy resulting in a decrease in revenue of $5.7 million and $17.9 million for the three and nine months ended September 30, 2011, respectively. The adoption of this policy had no effect on operating profit or net income. Certain prior year balances have been reclassified in the Consolidated Statements of Cash Flows to conform to the 2012 presentation.
Acquisitions and Divestitures
Acquisitions and Divestitures
Acquisitions and Divestitures

For the three and nine months ended September 30, 2012 and 2011, all of our acquisition and divestiture activity occurred in the Construction Products Group as summarized below:

 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2012
 
2011
 
2012
 
2011
 
 
 
(in millions)
 
 
Acquisitions:
 
 
 
 
 
 
 
Total cost
$
5.5

 
$
32.8

 
$
7.5

 
$
56.4

Net cash paid
$
4.9

 
$
27.2

 
$
4.9

 
$
42.5

Goodwill recorded
$
3.2

 
$
22.3

 
$
4.0

 
$
29.3

 
 
 
 
 
 
 
 
Divestitures:
 
 
 
 
 
 
 
Proceeds
$
—

 
$
—

 
$
2.1

 
$
8.3

Gain recognized
$
—

 
$
—

 
$
1.5

 
$
0.7

Goodwill charged off
$
—

 
$
—

 
$
0.1

 
$
1.0

Fair Value Accounting
Fair Value Accounting
Fair Value Accounting

Assets and liabilities measured at fair value on a recurring basis are summarized below:
 
 
Fair Value Measurement as of September 30, 2012
 
 
(in millions)
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
Cash equivalents
 
$
200.6

 
$
—

 
$
—

 
$
200.6

Restricted cash
 
234.8

 
—

 
—

 
234.8

Equity call agreement with TRIP Holdings equity investor1
 
—

 
—

 
0.2

 
0.2

Fuel derivative instruments1
 
—

 
0.4

 
—

 
0.4

Total assets
 
$
435.4

 
$
0.4

 
$
0.2

 
$
436.0

Liabilities:
 
 
 
 
 
 
 
 
Interest rate hedges:2
 
 
 
 
 
 
 
 
Wholly-owned subsidiary
 
$
—

 
$
41.9

 
$
—

 
$
41.9

TRIP Holdings
 
—

 
5.6

 
—

 
5.6

Equity put agreement with TRIP Holdings equity investor3
 
—

 
—

 
1.2

 
1.2

Total liabilities
 
$
—

 
$
47.5

 
$
1.2

 
$
48.7

 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurement as of December 31, 2011
 
 
(in millions)
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
Cash equivalents
 
$
246.6

 
$
—

 
$
—

 
$
246.6

Restricted cash
 
240.3

 
—

 
—

 
240.3

Equity call agreement with TRIP Holdings equity investor1
 
—

 
—

 
0.7

 
0.7

Total assets
 
$
486.9

 
$
—

 
$
0.7

 
$
487.6

Liabilities:
 
 
 
 
 
 
 
 
Interest rate hedges:2
 
 
 
 
 
 
 
 
Wholly-owned subsidiary
 
$
—

 
$
48.9

 
$
—

 
$
48.9

TRIP Holdings
 
—

 
4.8

 
—

 
4.8

Equity put agreement with TRIP Holdings equity investor3
 
—

 
—

 
3.1

 
3.1

Fuel derivative instruments2
 
—

 
0.1

 
—

 
0.1

Total liabilities
 
$
—

 
$
53.8

 
$
3.1

 
$
56.9

1 Included in other assets on the consolidated balance sheet.
2 Included in accrued liabilities on the consolidated balance sheet.
3 Included in other 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 United States 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 options, are valued using energy and commodity market data. Interest rate hedges are valued at exit prices obtained from each counterparty. See Note 7 Derivative Instruments and Note 11 Debt.

Level 3 – This level is defined as unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The equity put and call agreements with the TRIP equity investor are valued based on cash flow projections and certain assumptions regarding the likelihood of exercising the option under the related agreement. See Note 6 Investment in TRIP Holdings.

The carrying amounts and estimated fair values of our long-term debt are as follows:
 
 
September 30, 2012
 
December 31, 2011
 
 
Carrying
Value
 
Estimated
Fair Value
 
Carrying
Value
 
Estimated
Fair Value
 
 
(in millions)
Recourse:
 
 
 
 
 
 
 
 
Convertible subordinated notes
 
$
450.0

 
$
465.7

 
$
450.0

 
$
439.4

Less: unamortized discount
 
(90.7
)
 
 
 
(99.8
)
 
 
 
 
359.3

 
 
 
350.2

 
 
Capital lease obligations
 
46.5

 
46.5

 
48.6

 
48.6

Term loan
 
51.4

 
54.5

 
54.7

 
55.7

Other
 
5.1

 
5.1

 
4.2

 
4.2

 
 
462.3

 
571.8

 
457.7

 
547.9

Non-recourse:
 
 
 
 
 
 
 
 
2006 secured railcar equipment notes
 
259.1

 
287.2

 
269.3

 
278.5

Promissory notes
 
445.5

 
431.2

 
465.5

 
448.6

2009 secured railcar equipment notes
 
211.6

 
251.8

 
218.4

 
228.6

2010 secured railcar equipment notes
 
345.0

 
371.6

 
354.3

 
333.1

TILC warehouse facility
 
385.7

 
385.7

 
308.5

 
308.5

TRIP Holdings senior secured notes
 
61.2

 
62.5

 
61.2

 
61.6

TRIP Master Funding secured railcar equipment notes
 
807.7

 
913.7

 
840.0

 
834.9

 
 
2,515.8

 
2,703.7

 
2,517.2

 
2,493.8

Total
 
$
2,978.1

 
$
3,275.5

 
$
2,974.9

 
$
3,041.7



The estimated fair value of our convertible subordinated notes was based on a quoted market price as of September 30, 2012 and December 31, 2011, respectively (Level 1 input). The estimated fair values of our 2006, 2009, and 2010 secured railcar equipment notes, promissory notes, TRIP Holdings senior secured notes, TRIP Rail Master Funding LLC (“TRIP Master Funding”) secured railcar equipment notes, and term loan are based on our estimate of their fair value as of September 30, 2012 and December 31, 2011, respectively. These values were determined by discounting their future cash flows at the current market interest rate (Level 3 inputs). The carrying value of our Trinity Industries Leasing Company (“TILC”) warehouse facility approximates fair value because the interest rate adjusts to the market interest rate and the Company’s credit rating has not changed since the loan agreement was renewed in February 2011 (Level 3 input). The fair values of all other financial instruments are estimated to approximate carrying value.
Segment Information
Segment Information
Segment Information

The Company reports operating results in five principal business segments: (1) the Rail Group, which manufactures and sells railcars and related parts and components; (2) the Construction Products Group, which manufactures and sells highway products and concrete and 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, tank containers and tank heads for pressure and non-pressure vessels, frac tanks, and utility, traffic, and lighting structures; and (5) the Railcar Leasing and Management Services Group (“Leasing Group”), which owns and operates a fleet of railcars as well as provides third-party fleet management, maintenance, and leasing services. The segment All Other includes our captive insurance and transportation companies; legal, environmental, and maintenance costs associated with non-operating facilities; other peripheral businesses; and the change in market valuation related to ineffective commodity hedges. Gains and losses from the sale of property, plant, and equipment that are related to manufacturing and dedicated to the specific manufacturing operations of a particular segment are included in operating profit of that respective segment. Gains and losses from the sale of property, plant, and equipment that can be utilized by multiple segments are included in operating profit of the All Other segment.

Sales and related net profits from the Rail Group to the Leasing Group are recorded in the Rail Group and eliminated in consolidation. Sales between these groups are recorded at prices comparable to those charged to external customers, taking into consideration quantity, features, and production demand. Amortization of deferred profit on railcars sold to the Leasing Group is included in the operating profits of the Leasing Group. Sales of railcars from the lease fleet are included in the Leasing Group.

The financial information for these segments is shown in the tables below. We operate principally in North America.

Three Months Ended September 30, 2012
 
 
Revenues
 
Operating
Profit
(Loss)
 
 
External
 
Intersegment
 
Total
 
 
 
(in millions)
Rail Group
 
$
328.3

 
$
129.6

 
$
457.9

 
$
35.2

Construction Products Group
 
148.2

 
6.1

 
154.3

 
12.7

Inland Barge Group
 
166.5

 
—

 
166.5

 
26.9

Energy Equipment Group
 
131.0

 
4.6

 
135.6

 
9.5

Railcar Leasing and Management Services Group
 
159.3

 
0.6

 
159.9

 
85.1

All Other
 
4.2

 
20.4

 
24.6

 
(2.0
)
Corporate
 
—

 
—

 
—

 
(12.4
)
Eliminations – Lease subsidiary
 
—

 
(125.9
)
 
(125.9
)
 
(14.1
)
Eliminations – Other
 
—

 
(35.4
)
 
(35.4
)
 
1.0

Consolidated Total
 
$
937.5

 
$
—

 
$
937.5

 
$
141.9


Three Months Ended September 30, 2011
 
 
Revenues
 
Operating
Profit
(Loss)
 
 
External
 
Intersegment
 
Total
 
 
 
(in millions)
Rail Group
 
$
227.7

 
$
93.2

 
$
320.9

 
$
18.2

Construction Products Group
 
161.1

 
3.7

 
164.8

 
17.8

Inland Barge Group
 
143.2

 
—

 
143.2

 
26.0

Energy Equipment Group
 
107.3

 
4.3

 
111.6

 
(1.9
)
Railcar Leasing and Management Services Group
 
147.4

 
—

 
147.4

 
64.2

All Other
 
4.4

 
13.6

 
18.0

 
(0.3
)
Corporate
 
—

 
—

 
—

 
(11.5
)
Eliminations – Lease subsidiary
 
—

 
(87.9
)
 
(87.9
)
 
(8.1
)
Eliminations – Other
 
—

 
(26.9
)
 
(26.9
)
 
1.0

Consolidated Total
 
$
791.1

 
$
—

 
$
791.1

 
$
105.4


Nine Months Ended September 30, 2012
 
 
Revenues
 
Operating
Profit
(Loss)
 
 
External
 
Intersegment
 
Total
 
 
 
(in millions)
Rail Group
 
$
1,049.7

 
$
392.2

 
$
1,441.9

 
$
128.3

Construction Products Group
 
449.4

 
16.7

 
466.1

 
38.7

Inland Barge Group
 
509.8

 
—

 
509.8

 
93.5

Energy Equipment Group
 
377.7

 
13.6

 
391.3

 
9.7

Railcar Leasing and Management Services Group
 
493.7

 
2.7

 
496.4

 
228.0

All Other
 
10.9

 
50.2

 
61.1

 
(7.1
)
Corporate
 
—

 
—

 
—

 
(33.6
)
Eliminations – Lease subsidiary
 
—

 
(380.8
)
 
(380.8
)
 
(37.2
)
Eliminations – Other
 
—

 
(94.6
)
 
(94.6
)
 
(1.1
)
Consolidated Total
 
$
2,891.2

 
$
—

 
$
2,891.2

 
$
419.2


Nine Months Ended September 30, 2011 
 
 
Revenues
 
Operating
Profit
(Loss)
 
 
External
 
Intersegment
 
Total
 
 
 
(in millions)
Rail Group
 
$
556.0

 
$
265.4

 
$
821.4

 
$
42.9

Construction Products Group
 
439.2

 
8.5

 
447.7

 
42.2

Inland Barge Group
 
398.9

 
—

 
398.9

 
66.8

Energy Equipment Group
 
335.6

 
12.2

 
347.8

 
9.8

Railcar Leasing and Management Services Group
 
395.4

 
—

 
395.4

 
178.6

All Other
 
8.5

 
36.9

 
45.4

 
(0.8
)
Corporate
 
—

 
—

 
—

 
(30.6
)
Eliminations – Lease subsidiary
 
—

 
(252.8
)
 
(252.8
)
 
(23.3
)
Eliminations – Other
 
—

 
(70.2
)
 
(70.2
)
 
0.7

Consolidated Total
 
$
2,133.6

 
$
—

 
$
2,133.6

 
$
286.3



Effective December 31, 2011, the Company adopted the emerging industry policy of recognizing revenue 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 by the lease fleet for one year or less at the time of sale. Sales of railcars from the lease fleet which have been owned by the lease fleet for more than one year are recognized as a net gain or loss from the disposal of a long-term asset. Prior year reported balances have been reclassified to conform to this policy.
Railcar Leasing and Management Services Group
Railcar Leasing and Management Services Group
Railcar Leasing and Management Services Group

The Railcar Leasing and Management Services Group owns and operates a fleet of railcars as well as provides third-party fleet management, maintenance, and leasing services. Selected consolidating financial information for the Leasing Group is as follows:
 
 
September 30, 2012
 
 
Leasing Group
 
 
 
 
 
 
Wholly-
Owned
Subsidiaries
 
TRIP
Holdings
 
Manufacturing/
Corporate
 
Total
 
 
(in millions, unaudited)
Cash and cash equivalents
 
$
5.0

 
$
—

 
$
307.2

 
$
312.2

Property, plant, and equipment, net
 
$
3,175.3

 
$
1,127.1

 
$
516.6

 
$
4,819.0

Net deferred profit on railcars sold to the Leasing Group
 
(352.8
)
 
(182.5
)
 
—

 
(535.3
)
 
 
$
2,822.5

 
$
944.6

 
$
516.6

 
$
4,283.7

Restricted cash
 
$
175.8

 
$
59.0

 
$
—

 
$
234.8

Debt:
 
 
 
 
 
 
 
 
Recourse
 
$
97.9

 
$
—

 
$
455.1

 
$
553.0

Less: unamortized discount
 
—

 
—

 
(90.7
)
 
(90.7
)
 
 
97.9

 
—

 
364.4

 
462.3

Non-recourse
 
1,646.9

 
977.7

 
—

 
2,624.6

Less: non-recourse debt owned by Trinity
 
—

 
(108.8
)
 
—

 
(108.8
)
Total debt
 
$
1,744.8

 
$
868.9

 
$
364.4

 
$
2,978.1

Net deferred tax liabilities
 
$
622.4

 
$
5.1

 
$
(84.5
)
 
$
543.0

 
 
 
December 31, 2011
 
 
Leasing Group
 
 
 
 
 
 
Wholly-
Owned
Subsidiaries
 
TRIP
Holdings
 
Manufacturing/
Corporate
 
Total
 
 
(in millions)
Cash and cash equivalents
 
$
3.2

 
$
—

 
$
347.9

 
$
351.1

Property, plant, and equipment, net
 
$
3,066.0

 
$
1,135.0

 
$
510.0

 
$
4,711.0

Net deferred profit on railcars sold to the Leasing Group
 
(344.5
)
 
(187.0
)
 
—

 
(531.5
)
 
 
$
2,721.5

 
$
948.0

 
$
510.0

 
$
4,179.5

Restricted cash
 
$
165.7

 
$
74.6

 
$
—

 
$
240.3

Debt:
 
 
 
 
 
 
 
 
Recourse
 
$
103.3

 
$
—

 
$
454.2

 
$
557.5

Less: unamortized discount
 
—

 
—

 
(99.8
)
 
(99.8
)
 
 
103.3

 
—

 
354.4

 
457.7

Non-recourse
 
1,616.0

 
1,010.0

 
—

 
2,626.0

Less: non-recourse debt owned by Trinity
 
—

 
(108.8
)
 
—

 
(108.8
)
Total debt
 
$
1,719.3

 
$
901.2

 
$
354.4

 
$
2,974.9

Net deferred tax liabilities
 
$
582.4

 
$
4.7

 
$
(152.4
)
 
$
434.7



See Note 6 Investment in TRIP Holdings and Note 11 Debt for a further discussion regarding the Company’s investment in TRIP Holdings and TRIP Holdings’ debt.
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
Percent
Change
 
2012
 
2011
 
Percent
Change
 
 
($ in millions)
 
 
($ in millions)
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Wholly owned subsidiaries:
 
 
 
 
 
 
 
 
 
 
 
 
Leasing and management
 
$
106.4

 
$
94.6

 
12.5
%
 
$
306.9

 
$
277.8

 
10.5
%
Railcar sales(1)
 
23.4

 
23.6

 
*
 
100.5

 
30.2

 
*
 
 
129.8

 
118.2

 
9.8

 
407.4

 
308.0

 
32.3

TRIP Holdings:
 
 
 
 
 
 
 
 
 
 
 
 
Leasing and management
 
30.1

 
29.2

 
3.1

 
89.0

 
87.4

 
1.8

Railcar sales(1)
 
—

 
—

 
—

 
—

 
—

 
—

 
 
30.1

 
29.2

 
3.1

 
89.0

 
87.4

 
1.8

Total revenues
 
$
159.9

 
$
147.4

 
8.5

 
$
496.4

 
$
395.4

 
25.5

Operating Profit:
 
 
 
 
 
 
 
 
 
 
 
 
Wholly owned subsidiaries:
 
 
 
 
 
 
 
 
 
 
 
 
Leasing and management
 
$
47.1

 
$
40.3

 
 
 
$
134.2

 
$
116.3

 
 
Railcar sales(1):
 
 
 
 
 
 
 
 
 
 
 
 
Railcars owned one year or less at the time of sale
 
4.3

 
4.9

 
 
 
20.7

 
7.9

 
 
Railcars owned more than one year at the time of sale
 
15.9

 
1.6

 
 
 
21.6

 
3.0

 
 
 
 
67.3

 
46.8

 
 
 
176.5

 
127.2

 
 
TRIP Holdings:
 
 
 
 
 
 
 
 
 
 
 
 
Leasing and management
 
16.7

 
17.4

 
 
 
50.8

 
51.3

 
 
Railcar sales(1):
 
 
 
 
 
 
 
 
 
 
 
 
Railcars owned one year or less at the time of sale
 
—

 
—

 
 
 
—

 
—

 
 
Railcars owned more than one year at the time of sale
 
1.1

 
—

 
 
 
0.7

 
0.1

 
 
 
 
17.8

 
17.4

 
 
 
51.5

 
51.4

 
 
Total operating profit
 
$
85.1

 
$
64.2

 
 
 
$
228.0

 
$
178.6

 
 
Operating profit margin:
 
 
 
 
 
 
 
 
 
 
 
 
Leasing and management
 
46.7
%
 
46.6
%
 
 
 
46.7
%
 
45.9
%
 
 
Railcar sales(1)
 
*
 
*
 
 
 
*
 
*
 
 
Total operating profit margin
 
53.2

 
43.6

 
 
 
45.9

 
45.2

 
 
Interest and rent expense(2):
 
 
 
 
 
 
 
 
 
 
 
 
Rent expense
 
$
12.7

 
$
12.1

 
 
 
$
38.2

 
$
36.4

 
 
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
Wholly-owned subsidiaries
 
$
24.3

 
$
24.8

 
 
 
$
73.2

 
$
75.4

 
 
TRIP Holdings:
 
 
 
 
 
 
 
 
 
 
 
 
External
 
15.0

 
15.3

 
 
 
45.2

 
37.6

 
 
Intercompany
 
3.3

 
3.2

 
 
 
9.8

 
3.2

 
 
 
 
18.3

 
18.5

 
 
 
55.0

 
40.8

 
 
Total interest expense
 
$
42.6

 
$
43.3

 
 
 
$
128.2

 
$
116.2

 
 
 * Not meaningful

(1)
Effective December 31, 2011, the Company adopted the emerging industry policy of recognizing revenue 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 by the lease fleet for one year or less at the time of sale. Sales of railcars from the lease fleet which have been owned by the lease fleet for more than one year are recognized as a net gain or loss from the disposal of a long-term asset. Prior year reported balances have been reclassified to conform to this policy.

(2)
Rent expense is a component of operating profit. Interest expense is not a component of operating profit and includes the effect of hedges. Intercompany interest expense arises from Trinity’s ownership of a portion of TRIP Holdings’ Senior Secured Notes and is eliminated in consolidation. See Note 11 Debt.


Equipment consists primarily of railcars leased by third parties. The Leasing Group purchases equipment manufactured predominantly by the Rail Group and enters into lease contracts with third parties with terms generally ranging between one and twenty years. The Leasing Group primarily enters into operating leases. Future contractual minimum rental revenues on leases are as follows:
 
 
Remaining
three months
of 2012
 
2013
 
2014
 
2015
 
2016
 
Thereafter
 
Total
 
 
(in millions)
Wholly-owned subsidiaries
 
$
73.5

 
$
261.0

 
$
210.7

 
$
167.0

 
$
128.6

 
$
268.8

 
$
1,109.6

TRIP Holdings
 
24.8

 
85.5

 
64.1

 
52.3

 
43.2

 
70.1

 
340.0

 
 
$
98.3

 
$
346.5

 
$
274.8

 
$
219.3

 
$
171.8

 
$
338.9

 
$
1,449.6



Debt. The Leasing Group’s debt at September 30, 2012 consisted of both recourse and non-recourse debt. As of September 30, 2012, Trinity’s wholly-owned subsidiaries included in the Leasing Group held equipment with a net book value of approximately $2,534.8 million that is pledged as collateral for Leasing Group debt held by those subsidiaries, including equipment with a net book value of $49.9 million securing capital lease obligations. The net book value of unpledged equipment at September 30, 2012 was $544.4 million. See Note 11 Debt regarding Leasing Group debt.

TRIP Holdings. Debt owed by TRIP Holdings and its subsidiaries is nonrecourse to Trinity and TILC and is secured solely by the consolidated assets of TRIP Holdings and the equity interests of TRIP Holdings. In July 2011, TRIP Holdings and its newly-formed subsidiary, TRIP Master Funding, issued $1,032.0 million in new debt and repaid all of the outstanding borrowings of the existing TRIP Warehouse Loan. TRIP Master Funding equipment with a net book value of $1,127.1 million, excluding deferred profit resulting from the sale of railcars to TRIP Master Funding, is pledged as collateral for the TRIP Master Funding debt. See Note 6 Investment in TRIP Holdings for a description of TRIP Holdings.

Off Balance Sheet Arrangements. In prior years, the Leasing Group completed a series of financing transactions whereby railcars were sold to one or more separate independent owner trusts (“Trusts”). Each of the Trusts financed the purchase of the railcars with a combination of debt and equity. In each transaction, the equity participant in the Trust is considered to be the primary beneficiary of the Trust and therefore, the debt related to the Trust is not included as part of the consolidated financial statements. The Leasing Group, through newly formed, wholly-owned, qualified subsidiaries, leased railcars from the Trusts under operating leases with terms of 22 years, and subleased the railcars to independent third-party customers under shorter term operating rental agreements.

These Leasing Group subsidiaries had total assets as of September 30, 2012 of $209.7 million, including cash of $83.2 million and railcars of $94.0 million. The right, title, and interest in each sublease, cash, and railcars are pledged to collateralize the lease obligations to the Trusts and are included in the consolidated financial statements of the Company. Trinity does not guarantee the performance of the subsidiaries’ lease obligations. Certain ratios and cash deposits must be maintained by the Leasing Group’s subsidiaries in order for excess cash flow, as defined in the agreements, from the lease to third parties to be available to Trinity. Future operating lease obligations of the Leasing Group’s subsidiaries as well as future contractual minimum rental revenues related to these leases due to the Leasing Group are as follows:
 
 
Remaining three months of 2012
 
2013
 
2014
 
2015
 
2016
 
Thereafter
 
Total
 
 
(in millions)
Future operating lease obligations of Trusts’ railcars
 
$
11.4

 
$
45.6

 
$
44.8

 
$
43.1

 
$
40.1

 
$
341.3

 
$
526.3

Future contractual minimum rental revenues of Trusts’ railcars
 
$
15.7

 
$
51.1

 
$
36.4

 
$
28.2

 
$
19.9

 
$
37.0

 
$
188.3



Operating Lease Obligations. Future amounts due as well as future contractual minimum rental revenues related to operating leases other than leases with the Trusts are as follows: 
 
 
Remaining three months of 2012
 
2013
 
2014
 
2015
 
2016
 
Thereafter
 
Total
 
 
(in millions)
Future operating lease obligations
 
$
2.4

 
$
9.5

 
$
9.4

 
$
9.4

 
$
9.3

 
$
38.4

 
$
78.4

Future contractual minimum rental revenues
 
$
2.9

 
$
11.5

 
$
10.9

 
$
6.8

 
$
5.9

 
$
8.2

 
$
46.2



Operating lease obligations totaling $27.0 million are guaranteed by Trinity Industries, Inc. and certain subsidiaries. See Note 5 of the December 31, 2011 Consolidated Financial Statements filed on Form 10-K for a detailed explanation of these financing transactions.
Investment in TRIP Holdings
Investment in TRIP Holdings
Investment in TRIP Holdings

In 2007, the Company and other third-party equity investors formed TRIP Holdings for the purpose of providing railcar leasing and management services in North America. TRIP Holdings, through its wholly-owned subsidiary, TRIP Rail Leasing LLC (“TRIP Leasing”), purchased railcars from the Company’s Rail and Leasing Groups funded by capital contributions from TRIP Holdings’ equity investors and borrowings under the TRIP Warehouse Loan. As of September 30, 2012, TRIP Holdings’ subsidiaries had purchased $1,331.4 million of railcars from the Company. Railcars purchased from the Company by TRIP Holdings’ subsidiaries were required to be purchased at prices comparable with the prices of all similar, new railcars sold contemporaneously by the Company and at prices based on third-party appraised values for used railcars.

In July 2011, as a result of refinancing TRIP Holdings’ previous credit facility, TRIP Holdings and its newly-formed subsidiary, TRIP Master Funding, issued $1,032.0 million in new debt. The debt was used by TRIP Master Funding to purchase all of the railcar equipment owned by TRIP Leasing which, in turn, repaid all outstanding borrowings under the then existing TRIP credit facility and settled all outstanding related interest rate hedges. See Note 11 Debt regarding TRIP Holdings and its related debt. Additionally, Trinity entered into agreements with an equity investor of TRIP Holdings potentially requiring Trinity, under certain limited circumstances, to acquire from the equity investor an additional 16.3% equity ownership in TRIP Holdings if the option is exercised to its fullest extent. Under the agreement, if exercised, Trinity would be required to pay the equity investor an amount equal to 90% of the equity investor’s net investment in TRIP Holdings. Similarly, at its option, Trinity, under certain limited circumstances, may acquire all of the equity investor’s equity ownership in TRIP Holdings at an amount equal to 100% of the equity investor’s net investment in TRIP Holdings. The agreements expire in July 2014. See Note 3 Fair Value Accounting.

At September 30, 2012, the Company owned 57% of TRIP Holdings with the remainder owned by three other third-party equity investors. The Company receives distributions from TRIP Holdings as an equity investor, when allowed, in proportion to its 57% equity interest, and has an interest in the net assets of TRIP Holdings upon a liquidation event in the same proportion. The terms of the Company’s equity investment are identical to the terms of each of the other equity investors. Other than as described above, Trinity had no remaining equity commitment to TRIP Holdings as of September 30, 2012 and had no obligation to guarantee performance under any TRIP-related debt agreements, guarantee any railcar residual values, shield any parties from losses, or guarantee minimum yields.

The Company’s carrying value of its investment in TRIP Holdings is as follows:
 
 
September 30,
2012
 
December 31,
2011
 
 
(in millions)
Capital contributions
 
$
47.3

 
$
47.3

Equity purchased from investors
 
44.8

 
44.8

 
 
92.1

 
92.1

Equity in earnings
 
10.7

 
12.0

Equity in unrealized losses on derivative financial instruments
 
—

 
(1.3
)
Distributions
 
(7.0
)
 
(7.0
)
Deferred broker fees
 
(0.4
)
 
(0.6
)
 
 
$
95.4

 
$
95.2



Administrative fees paid to TILC by TRIP Holdings and subsidiaries for the three and nine month periods ended September 30, 2012 were $1.2 million and $3.7 million, respectively, and $1.2 million and $3.1 million, respectively, for the same periods last year.

See Note 6 of the December 31, 2011 Consolidated Financial Statements filed on Form 10-K for additional information.
Derivative Instruments
Derivative Instruments
Derivative Instruments

We use derivative instruments to mitigate the impact of changes in interest rates, both in anticipation of future debt issuances and to offset interest rate variability of certain floating rate debt issuances outstanding. We also use derivative instruments to mitigate the impact of changes in natural gas and diesel fuel prices and changes in foreign currency exchange rates. Derivative instruments that are designated and qualify as cash flow hedges are accounted for in accordance with applicable accounting standards. See Note 3 Fair Value Accounting for discussion of how the Company valued its commodity hedges and interest rate swaps at September 30, 2012.

Interest rate hedges
 
 
 
 
 
 
Included in accompanying balance sheet
at September 30, 2012
 
 
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
%
 
$
—

 
$
(2.0
)
 
$
—

Promissory notes
 
$
370.0

 
5.34
%
 
$
—

 
$
8.1

 
$
—

TRIP Holdings
 
$
788.5

 
3.60
%
 
$
—

 
$
20.8

 
$
15.6

Open hedges:
 
 
 
 
 
 
 
 
 
 
TRIP Master Funding secured railcar equipment notes
 
$
81.1

 
2.62
%
 
$
5.6

 
$
3.2

 
$
2.3

Promissory notes
 
$
451.7

 
4.13
%
 
$
41.9

 
$
40.5

 
$
—

(1) 
Weighted average fixed interest rate
 
 
Effect on interest expense – increase/(decrease)
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
Expected effect during next twelve months(1)
 
 
2012
 
2011
 
2012
 
2011
 
 
 
(in millions)
Expired hedges:
 
 
 
 
 
 
 
 
 
 
2006 secured railcar equipment notes
 
$
(0.1
)
 
$
(0.1
)
 
$
(0.3
)
 
$
(0.3
)
 
$
(0.3
)
Promissory notes
 
$
0.8

 
$
0.9

 
$
2.5

 
$
2.7

 
$
3.2

TRIP Holdings
 
$
1.5

 
$
1.8

 
$
4.5

 
$
15.9

 
$
5.9

Open hedges:
 
 
 
 
 
 
 
 
 
 
TRIP Master Funding secured railcar equipment notes
 
$
0.5

 
$
0.5

 
$
1.5

 
$
0.5

 
$
1.8

Promissory notes
 
$
4.3

 
$
4.6

 
$
12.7

 
$
14.3

 
$
17.0

(1) 
Based on fair value as of September 30, 2012

During 2005 and 2006, we entered into interest rate swap derivatives in anticipation of issuing our 2006 Secured Railcar Equipment Notes. These derivative instruments, with a notional amount of $200.0 million, were settled in 2006 and fixed the interest rate on a portion of the related debt issuance. These derivative instrument transactions are being accounted for as cash flow hedges with changes in the fair value of the instruments of $4.5 million in income recorded in accumulated other comprehensive loss (“AOCL”) through the date the related debt issuance closed in 2006. The balance is being amortized over the term of the related debt. The effect on interest expense is due to amortization of the AOCL balance.

During 2006 and 2007, we entered into interest rate swap derivatives in anticipation of issuing our Promissory Notes. These derivative instruments, with a notional amount of $370.0 million, were settled in 2008 and fixed the interest rate on a portion of the related debt issuance. These derivative instrument transactions are being accounted for as cash flow hedges with changes in the fair value of the instruments of $24.5 million recorded as a loss in AOCL through the date the related debt issuance closed in 2008. The balance is being amortized over the term of the related debt. The effect on interest expense is due to amortization of the AOCL balance.

In 2008, we entered into an interest rate swap derivative instrument, expiring in 2015, to fix the variable Libor component of the Promissory Notes. This derivative instrument transaction is being accounted for as a cash flow hedge. The effect on interest expense results primarily from monthly interest settlements.

Between 2007 and 2009, TRIP Holdings, as required by the TRIP Warehouse Loan, entered into interest rate swap derivatives, all of which qualified as cash flow hedges, to reduce the effect of changes in variable interest rates in the TRIP Warehouse Loan. In July 2011, these interest rate hedges were terminated in connection with the refinancing of the TRIP Warehouse Loan. Balances included in AOCL at the date the hedges were terminated are being amortized over the expected life of the new debt with $5.9 million of additional interest expense expected to be recognized during the twelve months following September 30, 2012. Also in July 2011, TRIP Holdings’ wholly-owned subsidiary, TRIP Master Funding, entered into an interest rate swap derivative instrument, expiring in 2021, with a notional amount of $94.1 million to reduce the effect of changes in variable interest rates associated with the Class A-1b notes of the TRIP Master Funding secured railcar equipment notes. The effect on interest expense results primarily from monthly interest settlements.

See Note 11 Debt regarding the related debt instruments.

Other Derivatives
 
 
Effect on operating income – increase/(decrease)
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
2012
 
2011
 
 
(in millions)
Fuel hedges(1)
 
 
 
 
 
 
 
 
Effect of mark to market valuation
 
$
0.6

 
$
(0.2
)
 
$
0.6

 
$
0.0

Settlements
 
0.0

 
0.2

 
0.0

 
0.3

 
 
$
0.6

 
$
—

 
$
0.6

 
$
0.3

Foreign exchange hedges(2)
 
$
—

 
$
0.6

 
$
(0.4
)
 
$
0.0

(1) 
Included in cost of revenues in the accompanying consolidated statement of operations
(2) 
Included in other, net in the accompanying consolidated statement of operations

Natural gas and diesel fuel

We maintain a program to mitigate the impact of fluctuations in the price of natural gas and diesel fuel purchases. The intent of the program is to protect our operating profit from adverse price changes by entering into derivative instruments. For those instruments that do not qualify for hedge accounting treatment, any changes in their valuation are recorded directly to the consolidated statement of operations. The amount recorded in the consolidated balance sheet as of September 30, 2012 for these instruments was not significant.

Foreign exchange hedge

We enter into foreign exchange hedges to mitigate the impact on operating profit of unfavorable fluctuations in foreign currency exchange rates. These instruments are short term with quarterly maturities and no remaining balance in AOCL as of September 30, 2012.
Property, Plant, and Equipment
Property, Plant, and Equipment
Property, Plant, and Equipment

The following table summarizes the components of property, plant, and equipment as of September 30, 2012 and December 31, 2011.
 
 
September 30,
2012
 
December 31,
2011
 
 
 
 
(as reported)
 
 
(in millions)
Manufacturing/Corporate:
 
 
 
 
Land
 
$
40.2

 
$
41.6

Buildings and improvements
 
438.6

 
429.7

Machinery and other
 
764.1

 
758.7

Construction in progress
 
35.6

 
12.8

 
 
1,278.5

 
1,242.8

Less accumulated depreciation
 
(761.9
)
 
(732.8
)
 
 
516.6

 
510.0

Leasing:
 
 
 
 
Wholly-owned subsidiaries:
 
 
 
 
Machinery and other
 
9.6

 
9.6

Equipment on lease
 
3,611.4

 
3,429.3

 
 
3,621.0

 
3,438.9

Less accumulated depreciation
 
(445.7
)
 
(372.9
)
 
 
3,175.3

 
3,066.0

TRIP Holdings:
 
 
 
 
Equipment on lease
 
1,272.3

 
1,257.7

Less accumulated depreciation
 
(145.2
)
 
(122.7
)
 
 
1,127.1

 
1,135.0

Net deferred profit on railcars sold to the Leasing Group
 
 
 
 
Sold to wholly-owned subsidiaries
 
(352.8
)
 
(344.5
)
Sold to TRIP Holdings
 
(182.5
)
 
(187.0
)
 
 
$
4,283.7

 
$
4,179.5

Goodwill
Goodwill
Goodwill

Goodwill by segment is as follows:
 
 
September 30,
2012
 
December 31,
2011
 
 
 
 
(as reported)
 
 
(in millions)
Rail Group
 
$
122.5

 
$
122.5

Construction Products Group
 
94.6

 
90.7

Energy Equipment Group
 
10.9

 
10.9

Railcar Leasing and Management Services Group
 
1.8

 
1.8

 
 
$
229.8

 
$
225.9



The net increase in the Construction Products Group goodwill as of September 30, 2012 is due to 2012 acquisitions offset partially by a divestiture.
Warranties
Warranties
Warranties

The changes in the accruals for warranties for the three and nine month periods ended September 30, 2012 and 2011 are as follows:

 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
2012
 
2011
 
 
(in millions)
Beginning balance
 
$
13.8

 
$
12.0

 
$
13.5

 
$
13.2

Warranty costs incurred
 
(1.1
)
 
(1.6
)
 
(5.0
)
 
(4.3
)
Warranty originations and revisions
 
2.6

 
2.1

 
7.8

 
4.6

Warranty expirations
 
(0.6
)
 
(0.9
)
 
(1.6
)
 
(1.9
)
Ending balance
 
$
14.7

 
$
11.6

 
$
14.7

 
$
11.6

Debt
Debt
Debt

The following table summarizes the components of debt as of September 30, 2012 and December 31, 2011:
 
 
September 30,
2012
 
December 31,
2011
 
 
 
 
(as reported)
 
 
(in millions)
Manufacturing/Corporate – Recourse:
 
 
 
 
Revolving credit facility
 
$
—

 
$
—

Convertible subordinated notes
 
450.0

 
450.0

Less: unamortized discount
 
(90.7
)
 
(99.8
)
 
 
359.3

 
350.2

Other
 
5.1

 
4.2

 
 
364.4

 
354.4

Leasing – Recourse:
 
 
 
 
Capital lease obligations
 
46.5

 
48.6

Term loan
 
51.4

 
54.7

 
 
97.9

 
103.3

Total recourse debt
 
462.3

 
457.7

 
 
 
 
 
Leasing – Non-recourse:
 
 
 
 
2006 secured railcar equipment notes
 
259.1

 
269.3

Promissory notes
 
445.5

 
465.5

2009 secured railcar equipment notes
 
211.6

 
218.4

2010 secured railcar equipment notes
 
345.0

 
354.3

TILC warehouse facility
 
385.7

 
308.5

TRIP Holdings senior secured notes:
 
 
 
 
Total outstanding
 
170.0

 
170.0

Less: owned by Trinity
 
(108.8
)
 
(108.8
)
 
 
61.2

 
61.2

TRIP Master Funding secured railcar equipment notes
 
807.7

 
840.0

Total non–recourse debt
 
2,515.8

 
2,517.2

 
 
 
 
 
Total debt
 
$
2,978.1

 
$
2,974.9



We have a $425.0 million unsecured revolving credit facility that matures on October 20, 2016. As of September 30, 2012, we had letters of credit issued under our revolving credit facility in an aggregate principal amount of $68.9 million, leaving $356.1 million available for borrowing. Other than these letters of credit, there were no borrowings under our revolving credit facility as of September 30, 2012, or for the nine month period then ended. Of the outstanding letters of credit as of September 30, 2012, a total of $0.5 million is expected to expire in 2012 and the remainder primarily in 2013. The majority of our letters of credit obligations supports the Company’s various insurance programs and generally renews each year. Trinity’s revolving credit facility requires the maintenance of ratios related to minimum interest coverage for the leasing and manufacturing operations and maximum leverage. Borrowings under the credit facility bear interest at Libor plus 150.0 basis points or prime plus 50.0 basis points. As of September 30, 2012, we were in compliance with all such financial covenants.

The Company’s 3 7/8% convertible subordinated notes are recorded net of unamortized discount to reflect their underlying economics by capturing the value of the conversion option as borrowing costs. As of September 30, 2012 and December 31, 2011, capital in excess of par value included $92.8 million related to the estimated value of the Convertible Subordinated Notes’ conversion options, in accordance with ASC 470-20. Debt discount recorded in the consolidated balance sheet is being amortized through June 1, 2018 to yield an effective annual interest rate of 8.42% based upon the estimated market interest rate for comparable non-convertible debt as of the issuance date of the Convertible Subordinated Notes. Total interest expense recognized on the Convertible Subordinated Notes for the three and nine months ended September 30, 2012 and 2011 is as follows:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
2012
 
2011
 
 
(in millions)
Coupon rate interest
 
$
4.4

 
$
4.4

 
$
13.1

 
$
13.1

Amortized debt discount
 
3.1

 
2.9

 
9.1

 
8.4

 
 
$
7.5

 
$
7.3

 
$
22.2

 
$
21.5



At September 30, 2012, the Convertible Subordinated Notes were convertible at a price of $51.19 per share resulting in 8,790,779 issuable shares. As of September 30, 2012, if the Convertible Subordinated Notes had been converted, no shares would have been issued since the trading price of the Company’s common stock was below the conversion price of the Convertible Subordinated Notes. The Company has not entered into any derivatives transactions associated with these notes.

The $475.0 million TILC warehouse loan facility, established to finance railcars owned by TILC, had $385.7 million outstanding and $89.3 million available as of September 30, 2012. The warehouse loan is a non-recourse obligation secured by a portfolio of railcars and operating leases, certain cash reserves, and other assets acquired and owned by the warehouse loan facility. The principal and interest of this indebtedness are paid from the cash flows of the underlying leases. Advances under the facility bear interest at a defined index rate plus a margin, for an all-in interest rate of 2.25% at September 30, 2012. The warehouse loan facility matures in February 2013. Amounts outstanding at maturity, absent renewal, will be payable in three installments in August 2013, February 2014, and August 2014.

Terms and conditions of other debt, including recourse and non-recourse provisions, are described in Note 11 of the December 31, 2011 Consolidated Financial Statements filed on Form 10-K.

The remaining principal payments under existing debt agreements as of September 30, 2012 are as follows:
 
 
Remaining
three months
of 2012
 
2013
 
2014
 
2015
 
2016
 
Thereafter
 
 
(in millions)
Recourse:
 
 
Manufacturing/Corporate
 
$
0.3

 
$
1.7

 
$
2.4

 
$
0.2

 
$
0.2

 
$
450.3

Leasing – capital lease obligations (Note 5)
 
0.7

 
2.9

 
3.1

 
3.3

 
3.5

 
33.0

Leasing – term loan (Note 5)
 
0.7

 
3.0

 
3.2

 
3.4

 
41.1

 
—

Non-recourse – leasing (Note 5):
 
 
 
 
 
 
 
 
 
 
 
 
2006 secured railcar equipment notes
 
3.3

 
15.1

 
16.9

 
18.6

 
21.9

 
183.3

Promissory notes
 
21.3

 
28.5

 
25.4

 
22.7

 
347.6

 
—

2009 secured railcar equipment notes
 
2.4

 
10.2

 
9.9

 
9.6

 
6.5

 
173.0

2010 secured railcar equipment notes
 
3.5

 
14.6

 
14.0

 
15.3

 
15.0

 
282.6

TILC warehouse facility
 
2.0

 
10.7

 
5.9

 
—

 
—

 
—

TRIP Holdings senior secured notes:
 
 
 
 
 
 
 
 
 
 
 
 
Total outstanding
 
—

 
—

 
170.0

 
—

 
—

 
—

Less: owned by Trinity
 
—

 
—

 
(108.8
)
 
—

 
—

 
—

 
 
 
 
 
 
61.2

 
 
 
 
 
 
TRIP Master Funding secured railcar equipment notes
 
9.9

 
41.0

 
40.1

 
35.7

 
29.3

 
651.7

Facility termination payments - TILC warehouse facility
 
—

 
122.4

 
244.7

 
—

 
—

 
—

Total principal payments
 
$
44.1

 
$
250.1

 
$
426.8

 
$
108.8

 
$
465.1

 
$
1,773.9

Other, Net
Other, Net
Other, Net

Other, net (income) expense consists of the following items:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
2012
 
2011
 
 
(in millions)
Foreign currency exchange transactions
 
$
(0.4
)
 
$
3.0

 
$
(1.8
)
 
$
3.1

Gain on equity investments
 
(0.2
)
 
(0.1
)
 
(0.3
)
 
(0.6
)
Other
 
(0.8
)
 
2.4

 
(2.3
)
 
1.7

Other, net
 
$
(1.4
)
 
$
5.3

 
$
(4.4
)
 
$
4.2

Income Taxes
Income Taxes
Income Taxes

The provision for income taxes results in effective tax rates that differ from the statutory rates. The following is a reconciliation between the statutory United States Federal income tax rate and the Company’s effective income tax rate:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
2012
 
2011
Statutory rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
%
State taxes
 
2.0

 
3.2

 
2.0

 
2.8

Tax settlements
 
0.0

 
0.0

 
(0.8
)
 
0.0

Changes in tax reserves
 
(1.6
)
 
(0.9
)
 
(0.6
)
 
0.3

Foreign tax adjustments
 
(1.0
)
 
2.1

 
(0.6
)
 
0.3

Other, net
 
(0.2
)
 
0.6

 
(0.1
)
 
1.2

Effective rate
 
34.2
 %
 
40.0
 %
 
34.9
 %
 
39.6
%


During the nine months ended September 30, 2012, we settled our audit with the Internal Revenue Service (“IRS”) for the 2004-2005 tax years. As a result of closing this audit, we recognized a $3.5 million tax benefit in the first quarter, primarily related to favorable claims filed and approved by the IRS in the final audit settlement.

During the three and nine months ended September 30, 2012, we recognized a tax benefit of $1.5 million and $1.8 million, respectively, due to the release of net tax reserves primarily as a result of certain state tax issues where the statute of limitations had lapsed.

The IRS field work for our 2006-2008 audit cycle has concluded and all issues, except for transfer pricing, have been agreed to and tentatively settled. The transfer pricing issue has been appealed and we are seeking Competent Authority review with Mexico to avoid double-taxation of income in the U.S. and in Mexico. As we do not control the timing of when our issues will be reviewed by Competent Authority, we cannot determine when the 2006-2008 cycle will close and all issues formally settled and thus when the statute of limitations for years after 2005 will close. In early October 2012, we were notified by the IRS of their intent to begin their examination of our 2009 and 2010 tax years as well as the June 30, 2009 tax year of Quixote Corporation, a wholly-owned subsidiary that we acquired in February 2010. We expect that our 2011 tax return will be added to this examination cycle as it was just recently filed during the third quarter of 2012.

We have various subsidiaries in Mexico that file separate tax returns and thus are subject to examination by taxing authorities at different times. The 2003 tax year of one of our Mexican subsidiaries is still under review and its statute of limitations remains open through June 2014. Another Mexican subsidiary’s statute of limitations for the 2005 tax year remains open through July 2013. The remaining entities are open for their 2006 tax years and forward.

Our two Swiss subsidiaries, one of which is a holding company and the other of which is dormant, have been audited by the taxing authorities through 2008 and 2009. The statute of limitations in Switzerland is generally five years from the end of the tax year, but can be extended up to 15 years in certain cases if the audit has commenced during the original five year period.

We also currently have sales offices in Europe and Canada that are subject to various statutes of limitations.

Generally, states’ statutes of limitations in the United States are open from 2003 forward due to the use of tax loss carryforwards in certain jurisdictions.

The change in unrecognized tax benefits for the nine months ended September 30, 2012 and 2011 was as follows:
 
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
 
(in millions)
Beginning balance
 
$
52.5

 
$
36.8

Additions for tax positions related to the current year
 
3.1

 
2.9

Additions for tax positions of prior years
 
—

 
15.1

Reductions for tax positions of prior years
 
(1.1
)
 
(0.1
)
Settlements
 
(3.4
)
 
(3.5
)
Expiration of statute of limitations
 
(0.8
)
 
(0.5
)
Ending balance
 
$
50.3

 
$
50.7



Additions for tax positions related to the current year in the amounts of $3.1 million and $2.9 million recorded in the nine months ended September 30, 2012 and 2011, respectively, were amounts provided for tax positions that will be taken for Federal and state income tax purposes when we file those tax returns.

Additions for tax positions of prior years for the nine months ended September 30, 2011 of $15.1 million are primarily due to Federal tax positions taken on prior year returns that were proposed by the IRS but had not been previously reserved. Since these items are primarily timing differences, we will be allowed a future tax deduction. During 2011, we recorded a corresponding deferred tax asset for the future tax reduction related to these adjustments.

The reduction in tax positions of prior years of $1.1 million for the nine months ended September 30, 2012, was primarily related to new guidance issued by the IRS regarding the capitalization of fixed assets that was issued in March 2012 as well as state taxes.

Settlements during the nine months ended September 30, 2012, primarily related to the settlement of our 2004-2005 IRS audit as well as the related impact on state tax returns. Settlements during the nine months ended September 30, 2011, primarily related to an audit of a separate tax return of our Swiss subsidiary.

Unrecognized tax benefits that are currently reserved are accounted for as both temporary in nature as well as permanent differences depending on the nature of the item. Those items that would result in temporary book/tax differences have a corresponding deferred tax asset recorded. In addition, we record deferred tax assets for the future deduction of state taxes and accrued interest. The total amount of unrecognized tax benefits including interest and penalties at September 30, 2012 and 2011, for which no deferred tax asset has been recorded and that would affect the Company’s effective tax rate if recognized was $15.9 million and $18.8 million, respectively. There is a reasonable possibility that unrecognized Federal and state tax benefits will decrease by September 30, 2013 due to a lapse in the statute of limitations for assessing tax. Amounts subject to a lapse by September 30, 2013 total $7.8 million. Further, there is a reasonable possibility that the unrecognized Federal tax benefits will decrease by September 30, 2013 due to settlements with taxing authorities. Amounts expected to settle by September 30, 2013 total $26.5 million.

Trinity accounts for interest expense and penalties related to income tax issues as income tax expense. Accordingly, interest expense and penalties associated with an uncertain tax position are included in the income tax provision. The total amount of accrued interest and penalties as of September 30, 2012 and December 31, 2011 was $11.3 million and $13.3 million, respectively. Income tax expense for the three and nine months ended September 30, 2012, included a decrease in income tax expense of $1.3 million and $2.1 million, respectively, in interest expense and penalties related to uncertain tax positions. Income tax expense for the three and nine months ended September 30, 2011, included a decrease in income tax expense of $0.3 million and an increase of $1.5 million, respectively, in interest expense and penalties related to uncertain tax positions.
Employee Retirement Plans
Employee Retirement Plans
Employee Retirement Plans

The following table summarizes the components of net retirement cost for the Company:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
2012
 
2011
 
 
(in millions)
Service cost
 
$
0.2

 
$
0.2

 
$
0.6

 
$
0.7

Interest
 
4.9

 
4.9

 
14.6

 
14.7

Expected return on plan assets
 
(5.7
)
 
(5.7
)
 
(17.1
)
 
(17.1
)
Actuarial loss
 
0.7

 
0.4

 
2.5

 
1.4

Prior service cost
 
0.1

 
0.1

 
0.1

 
0.1

Defined benefit expense
 
0.2

 
(0.1
)
 
0.7

 
(0.2
)
Profit sharing
 
3.1

 
1.9

 
8.9

 
6.4

Net expense
 
$
3.3

 
$
1.8

 
$
9.6

 
$
6.2



Trinity contributed $3.6 million and $13.8 million to the Company’s defined benefit pension plans for the three and nine month periods ended September 30, 2012, respectively. Trinity contributed $2.9 million and $11.7 million to the Company’s defined benefit pension plans for the three and nine month periods ended September 30, 2011, respectively. Total contributions to the Company’s defined benefit pension plans in 2012 are expected to be approximately $17.3 million.
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive loss for the nine months ended September 30, 2012 are as follows:
 
 
Currency
translation
adjustments
 
Unrealized
loss on
derivative
financial
instruments
 
Funded
status of
pension
liability
 
Accumulated
Other
Comprehensive
Loss
 
 
(in millions)
Balance at December 31, 2011
 
$
(17.1
)
 
$
(46.2
)
 
$
(70.7
)
 
$
(134.0
)
Other comprehensive income
 
0.6

 
6.3

 
1.6

 
8.5

Balance at September 30, 2012, net of tax expense (benefit) of $0.2, $(30.6), $(40.7) and $(71.1)
 
$
(16.5
)
 
$
(39.9
)
 
$
(69.1
)
 
$
(125.5
)

See Note 7 Derivative Instruments for information on the reclassification of amounts in accumulated other comprehensive loss into earnings.
Stock-Based Compensation
Stock-Based Compensation
Stock-Based Compensation
Stock-based compensation totaled approximately $7.9 million and $20.4 million for the three and nine months ended September 30, 2012, respectively. Stock-based compensation totaled approximately $6.9 million and $16.3 million for the three and nine months ended September 30, 2011, respectively.
Earnings Per Common Share
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 the net impact of unvested restricted shares and shares that could be issued under outstanding stock options. Total weighted average restricted shares and antidilutive stock options were 3.3 million shares and 3.2 million shares for the three and nine month periods ended September 30, 2012, respectively. Total weighted average restricted shares and antidilutive stock options were 2.9 million shares for the three and nine month periods ended September 30, 2011.

The computation of basic and diluted net income attributable to Trinity Industries, Inc. is as follows:
 
 
Three Months Ended
September 30, 2012
 
Three Months Ended
September 30, 2011
 
 
(in millions, except per share amounts)
 
 
Income
(Loss)
 
Average
Shares
 
EPS
 
Income
(Loss)
 
Average
Shares
 
EPS
Net income attributable to Trinity Industries, Inc.
 
$
63.2

 
 
 
 
 
$
31.9

 
 
 
 
Unvested restricted share participation
 
(2.1
)
 
 
 
 
 
(1.0
)
 
 
 
 
Net income attributable to Trinity Industries, Inc. – basic
 
61.1

 
76.5

 
$
0.80

 
30.9

 
77.7

 
$
0.40

Effect of dilutive securities:
 
 
 
 
 
 
 
 
 
 
 
 
Stock options
 
—

 
0.2

 
 
 
—

 
0.2

 
 
Net income attributable to Trinity Industries, Inc. – diluted
 
$
61.1

 
76.7

 
$
0.80

 
$
30.9

 
77.9

 
$
0.40

 
 
 
Nine Months Ended
September 30, 2012
 
Nine Months Ended
September 30, 2011
 
 
(in millions, except per share amounts)
 
 
Income
(Loss)
 
Average
Shares
 
EPS
 
Income
(Loss)
 
Average
Shares
 
EPS
Net income attributable to Trinity Industries, Inc.
 
$
183.9

 
 
 
 
 
$
86.1

 
 
 
 
Unvested restricted share participation
 
(6.1
)
 
 
 
 
 
(2.9
)
 
 
 
 
Net income attributable to Trinity Industries, Inc. – basic
 
177.8

 
77.3

 
$
2.30

 
83.2

 
77.4

 
$
1.07

Effect of dilutive securities:
 
 
 
 
 
 
 
 
 
 
 
 
Stock options
 
—

 
0.2

 
 
 
—

 
0.3

 
 
Net income attributable to Trinity Industries, Inc. – diluted
 
$
177.8

 
77.5

 
$
2.29

 
$
83.2

 
77.7

 
$
1.07

Contingencies
Contingencies
Contingencies

Railworthiness Directive

As previously reported, in 2011 the Company received the approval of the Federal Railroad Administration (“FRA”) to implement a voluntary recertification of 948 tank cars owned or managed by the Company’s wholly-owned, railcar leasing subsidiary and used in transporting poison inhalation hazard (“PIH”) materials. The recertification process is underway and being performed in conjunction with the normal three to five year, federally mandated inspection cycle for tank cars in PIH service. Maintenance costs associated with this recertification process are expensed as incurred. The additional costs estimated to be incurred for compliance with the directive are not expected to be significant.

Other Matters

As previously reported, Trinity Structural Towers, Inc., a wholly-owned subsidiary of the Company, is in litigation with a structural wind towers customer for the customer’s breach of a long-term supply contract for the manufacture of towers. While the customer partially performed the contract, it ultimately defaulted on its purchase obligation and did not remedy such default following written notice. Discovery in this litigation is continuing.

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 loss for such matters, taking into consideration our rights in indemnity and recourse to third parties is $4.0 million to $19.8 million. Total accruals of $10.1 million, including environmental and workplace matters described below, are included in accrued liabilities in the accompanying consolidated balance sheet. The Company believes any additional liability would not be material to its financial position or results of operations.

Trinity is subject to remedial orders and Federal, state, local, and foreign laws and regulations relating to the environment and the workplace. The Company has reserved $7.4 million to cover our probable and estimable liabilities with respect to the investigations, assessments, and remedial responses to such matters, taking into account currently available information and our contractual rights to indemnification and recourse to third parties. However, estimates of liability arising from future proceedings, assessments, or remediation are inherently imprecise. Accordingly, there can be no assurance that we will not become involved in future litigation or other proceedings involving the environment and the workplace or, if we are found to be responsible or liable in any such litigation or proceeding, that such costs would not be material to the Company. We believe that we are currently in substantial compliance with environmental and workplace laws and regulations.
Summary of Significant Accounting Policies (Policies)
Basis of Presentation 
Basis of Presentation

The foregoing consolidated financial statements are unaudited and have been prepared from the books and records of Trinity Industries, Inc. and its subsidiaries (“Trinity”, “Company”, “we”, or “our”) including its majority-owned subsidiary, TRIP Rail Holdings LLC (“TRIP Holdings”). In our opinion, all normal and recurring adjustments necessary for a fair presentation of the financial position of the Company as of September 30, 2012, and the results of operations for the three and nine month periods ended September 30, 2012 and 2011, and cash flows for the nine month periods ended September 30, 2012 and 2011, have been made in conformity with generally accepted accounting principles. Because of seasonal and other factors, the results of operations for the nine month period ended September 30, 2012 may not be indicative of expected results of operations for the year ending December 31, 2012. These interim financial statements and notes are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with the audited consolidated financial statements of the Company included in its Form 10-K for the year ended December 31, 2011.
Stockholders' Equity 
Stockholders’ Equity

In September 2012, the Company’s Board of Directors authorized a new $200 million share repurchase program, effective October 1, 2012, which expires on December 31, 2014. The new program replaces the Company's prior program which expired on September 30, 2012. During the three and nine month periods ended September 30, 2012, the Company repurchased 141,992 shares and 1,834,221 shares, respectively, under the prior program at a cost of approximately $4.0 million and $45.2 million, respectively. No shares were repurchased under the prior program during the three and nine month periods ended September 30, 2011.
Financial Instruments 
Financial Instruments

Financial instruments that potentially subject the Company to a concentration of credit risk are primarily cash investments, short-term marketable securities, and receivables. The carrying values of cash, receivables, and accounts payable are considered to be representative of their respective fair values. At September 30, 2012, one customer’s net receivable balance in our Energy Equipment Group, all within terms, accounted for approximately 22% of the consolidated net receivables balance outstanding.
Recent Accounting Pronouncements 
Recent Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-05, “Comprehensive Income (ASC Topic 220): Presentation of Comprehensive Income,” (“ASU 2011-05”) which amended prior comprehensive income guidance. ASU 2011-05 became effective for public companies during the interim and annual periods beginning after December 15, 2011 with early adoption permitted. Accordingly, the Company adopted this new standard on January 1, 2012 by including the consolidated statement of comprehensive income with its consolidated financial statements and revising Note 15 Accumulated Other Comprehensive Loss. The adoption of ASU 2011-05 did not have an impact on the Company’s consolidated financial position, results of operations or cash flows as it only requires a change in reporting format with regard to components of other comprehensive income.
Reclassifications 
Reclassifications

Effective December 31, 2011, the Company adopted the emerging industry policy of recognizing revenue 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 by the lease fleet for one year or less at the time of sale. Sales of railcars from the lease fleet which have been owned by the lease fleet for more than one year are recognized as a net gain or loss from the disposal of a long-term asset. Prior year reported balances have been reclassified to conform to this policy resulting in a decrease in revenue of $5.7 million and $17.9 million for the three and nine months ended September 30, 2011, respectively. The adoption of this policy had no effect on operating profit or net income. Certain prior year balances have been reclassified in the Consolidated Statements of Cash Flows to conform to the 2012 presentation.
Acquisitions and Divestitures (Tables)
Acquisition and divestiture activity
For the three and nine months ended September 30, 2012 and 2011, all of our acquisition and divestiture activity occurred in the Construction Products Group as summarized below:

 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2012
 
2011
 
2012
 
2011
 
 
 
(in millions)
 
 
Acquisitions:
 
 
 
 
 
 
 
Total cost
$
5.5

 
$
32.8

 
$
7.5

 
$
56.4

Net cash paid
$
4.9

 
$
27.2

 
$
4.9

 
$
42.5

Goodwill recorded
$
3.2

 
$
22.3

 
$
4.0

 
$
29.3

 
 
 
 
 
 
 
 
Divestitures:
 
 
 
 
 
 
 
Proceeds
$
—

 
$
—

 
$
2.1

 
$
8.3

Gain recognized
$
—

 
$
—

 
$
1.5

 
$
0.7

Goodwill charged off
$
—

 
$
—

 
$
0.1

 
$
1.0

Fair Value Accounting (Tables)
Assets and liabilities measured at fair value on recurring basis 
Assets and liabilities measured at fair value on a recurring basis are summarized below:
 
 
Fair Value Measurement as of September 30, 2012
 
 
(in millions)
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
Cash equivalents
 
$
200.6

 
$
—

 
$
—

 
$
200.6

Restricted cash
 
234.8

 
—

 
—

 
234.8

Equity call agreement with TRIP Holdings equity investor1
 
—

 
—

 
0.2

 
0.2

Fuel derivative instruments1
 
—

 
0.4

 
—

 
0.4

Total assets
 
$
435.4

 
$
0.4

 
$
0.2

 
$
436.0

Liabilities:
 
 
 
 
 
 
 
 
Interest rate hedges:2
 
 
 
 
 
 
 
 
Wholly-owned subsidiary
 
$
—

 
$
41.9

 
$
—

 
$
41.9

TRIP Holdings
 
—

 
5.6

 
—

 
5.6

Equity put agreement with TRIP Holdings equity investor3
 
—

 
—

 
1.2

 
1.2

Total liabilities
 
$
—

 
$
47.5

 
$
1.2

 
$
48.7

 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurement as of December 31, 2011
 
 
(in millions)
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
Cash equivalents
 
$
246.6

 
$
—

 
$
—

 
$
246.6

Restricted cash
 
240.3

 
—

 
—

 
240.3

Equity call agreement with TRIP Holdings equity investor1
 
—

 
—

 
0.7

 
0.7

Total assets
 
$
486.9

 
$
—

 
$
0.7

 
$
487.6

Liabilities:
 
 
 
 
 
 
 
 
Interest rate hedges:2
 
 
 
 
 
 
 
 
Wholly-owned subsidiary
 
$
—

 
$
48.9

 
$
—

 
$
48.9

TRIP Holdings
 
—

 
4.8

 
—

 
4.8

Equity put agreement with TRIP Holdings equity investor3
 
—

 
—

 
3.1

 
3.1

Fuel derivative instruments2
 
—

 
0.1

 
—

 
0.1

Total liabilities
 
$
—

 
$
53.8

 
$
3.1

 
$
56.9

1 Included in other assets on the consolidated balance sheet.
2 Included in accrued liabilities on the consolidated balance sheet.
3 Included in other liabilities on the consolidated balance sheet.
Carrying amounts and estimated fair values of long-term debt 
The carrying amounts and estimated fair values of our long-term debt are as follows:
 
 
September 30, 2012
 
December 31, 2011
 
 
Carrying
Value
 
Estimated
Fair Value
 
Carrying
Value
 
Estimated
Fair Value
 
 
(in millions)
Recourse:
 
 
 
 
 
 
 
 
Convertible subordinated notes
 
$
450.0

 
$
465.7

 
$
450.0

 
$
439.4

Less: unamortized discount
 
(90.7
)
 
 
 
(99.8
)
 
 
 
 
359.3

 
 
 
350.2

 
 
Capital lease obligations
 
46.5

 
46.5

 
48.6

 
48.6

Term loan
 
51.4

 
54.5

 
54.7

 
55.7

Other
 
5.1

 
5.1

 
4.2

 
4.2

 
 
462.3

 
571.8

 
457.7

 
547.9

Non-recourse:
 
 
 
 
 
 
 
 
2006 secured railcar equipment notes
 
259.1

 
287.2

 
269.3

 
278.5

Promissory notes
 
445.5

 
431.2

 
465.5

 
448.6

2009 secured railcar equipment notes
 
211.6

 
251.8

 
218.4

 
228.6

2010 secured railcar equipment notes
 
345.0

 
371.6

 
354.3

 
333.1

TILC warehouse facility
 
385.7

 
385.7

 
308.5

 
308.5

TRIP Holdings senior secured notes
 
61.2

 
62.5

 
61.2

 
61.6

TRIP Master Funding secured railcar equipment notes
 
807.7

 
913.7

 
840.0

 
834.9

 
 
2,515.8

 
2,703.7

 
2,517.2

 
2,493.8

Total
 
$
2,978.1

 
$
3,275.5

 
$
2,974.9

 
$
3,041.7

Segment Information (Tables)
Financial information from continuing operations for segments
The financial information for these segments is shown in the tables below. We operate principally in North America.

Three Months Ended September 30, 2012
 
 
Revenues
 
Operating
Profit
(Loss)
 
 
External
 
Intersegment
 
Total
 
 
 
(in millions)
Rail Group
 
$
328.3

 
$
129.6

 
$
457.9

 
$
35.2

Construction Products Group
 
148.2

 
6.1

 
154.3

 
12.7

Inland Barge Group
 
166.5

 
—

 
166.5

 
26.9

Energy Equipment Group
 
131.0

 
4.6

 
135.6

 
9.5

Railcar Leasing and Management Services Group
 
159.3

 
0.6

 
159.9

 
85.1

All Other
 
4.2

 
20.4

 
24.6

 
(2.0
)
Corporate
 
—

 
—

 
—

 
(12.4
)
Eliminations – Lease subsidiary
 
—

 
(125.9
)
 
(125.9
)
 
(14.1
)
Eliminations – Other
 
—

 
(35.4
)
 
(35.4
)
 
1.0

Consolidated Total
 
$
937.5

 
$
—

 
$
937.5

 
$
141.9


Three Months Ended September 30, 2011
 
 
Revenues
 
Operating
Profit
(Loss)
 
 
External
 
Intersegment
 
Total
 
 
 
(in millions)
Rail Group
 
$
227.7

 
$
93.2

 
$
320.9

 
$
18.2

Construction Products Group
 
161.1

 
3.7

 
164.8

 
17.8

Inland Barge Group
 
143.2

 
—

 
143.2

 
26.0

Energy Equipment Group
 
107.3

 
4.3

 
111.6

 
(1.9
)
Railcar Leasing and Management Services Group
 
147.4

 
—

 
147.4

 
64.2

All Other
 
4.4

 
13.6

 
18.0

 
(0.3
)
Corporate
 
—

 
—

 
—

 
(11.5
)
Eliminations – Lease subsidiary
 
—

 
(87.9
)
 
(87.9
)
 
(8.1
)
Eliminations – Other
 
—

 
(26.9
)
 
(26.9
)
 
1.0

Consolidated Total
 
$
791.1

 
$
—

 
$
791.1

 
$
105.4


Nine Months Ended September 30, 2012
 
 
Revenues
 
Operating
Profit
(Loss)
 
 
External
 
Intersegment
 
Total
 
 
 
(in millions)
Rail Group
 
$
1,049.7

 
$
392.2

 
$
1,441.9

 
$
128.3

Construction Products Group
 
449.4

 
16.7

 
466.1

 
38.7

Inland Barge Group
 
509.8

 
—

 
509.8

 
93.5

Energy Equipment Group
 
377.7

 
13.6

 
391.3

 
9.7

Railcar Leasing and Management Services Group
 
493.7

 
2.7

 
496.4

 
228.0

All Other
 
10.9

 
50.2

 
61.1

 
(7.1
)
Corporate
 
—

 
—

 
—

 
(33.6
)
Eliminations – Lease subsidiary
 
—

 
(380.8
)
 
(380.8
)
 
(37.2
)
Eliminations – Other
 
—

 
(94.6
)
 
(94.6
)
 
(1.1
)
Consolidated Total
 
$
2,891.2

 
$
—

 
$
2,891.2

 
$
419.2


Nine Months Ended September 30, 2011 
 
 
Revenues
 
Operating
Profit
(Loss)
 
 
External
 
Intersegment
 
Total
 
 
 
(in millions)
Rail Group
 
$
556.0

 
$
265.4

 
$
821.4

 
$
42.9

Construction Products Group
 
439.2

 
8.5

 
447.7

 
42.2

Inland Barge Group
 
398.9

 
—

 
398.9

 
66.8

Energy Equipment Group
 
335.6

 
12.2

 
347.8

 
9.8

Railcar Leasing and Management Services Group
 
395.4

 
—

 
395.4

 
178.6

All Other
 
8.5

 
36.9

 
45.4

 
(0.8
)
Corporate
 
—

 
—

 
—

 
(30.6
)
Eliminations – Lease subsidiary
 
—

 
(252.8
)
 
(252.8
)
 
(23.3
)
Eliminations – Other
 
—

 
(70.2
)
 
(70.2
)
 
0.7

Consolidated Total
 
$
2,133.6

 
$
—

 
$
2,133.6

 
$
286.3

Railcar Leasing and Management Services Group (Tables)
Consolidating financial information 
Selected consolidating financial information for the Leasing Group is as follows:
 
 
September 30, 2012
 
 
Leasing Group
 
 
 
 
 
 
Wholly-
Owned
Subsidiaries
 
TRIP
Holdings
 
Manufacturing/
Corporate
 
Total
 
 
(in millions, unaudited)
Cash and cash equivalents
 
$
5.0

 
$
—

 
$
307.2

 
$
312.2

Property, plant, and equipment, net
 
$
3,175.3

 
$
1,127.1

 
$
516.6

 
$
4,819.0

Net deferred profit on railcars sold to the Leasing Group
 
(352.8
)
 
(182.5
)
 
—

 
(535.3
)
 
 
$
2,822.5

 
$
944.6

 
$
516.6

 
$
4,283.7

Restricted cash
 
$
175.8

 
$
59.0

 
$
—

 
$
234.8

Debt:
 
 
 
 
 
 
 
 
Recourse
 
$
97.9

 
$
—

 
$
455.1

 
$
553.0

Less: unamortized discount
 
—

 
—

 
(90.7
)
 
(90.7
)
 
 
97.9

 
—

 
364.4

 
462.3

Non-recourse
 
1,646.9

 
977.7

 
—

 
2,624.6

Less: non-recourse debt owned by Trinity
 
—

 
(108.8
)
 
—

 
(108.8
)
Total debt
 
$
1,744.8

 
$
868.9

 
$
364.4

 
$
2,978.1

Net deferred tax liabilities
 
$
622.4

 
$
5.1

 
$
(84.5
)
 
$
543.0

 
 
 
December 31, 2011
 
 
Leasing Group
 
 
 
 
 
 
Wholly-
Owned
Subsidiaries
 
TRIP
Holdings
 
Manufacturing/
Corporate
 
Total
 
 
(in millions)
Cash and cash equivalents
 
$
3.2

 
$
—

 
$
347.9

 
$
351.1

Property, plant, and equipment, net
 
$
3,066.0

 
$
1,135.0

 
$
510.0

 
$
4,711.0

Net deferred profit on railcars sold to the Leasing Group
 
(344.5
)
 
(187.0
)
 
—

 
(531.5
)
 
 
$
2,721.5

 
$
948.0

 
$
510.0

 
$
4,179.5

Restricted cash
 
$
165.7

 
$
74.6

 
$
—

 
$
240.3

Debt:
 
 
 
 
 
 
 
 
Recourse
 
$
103.3

 
$
—

 
$
454.2

 
$
557.5

Less: unamortized discount
 
—

 
—

 
(99.8
)
 
(99.8
)
 
 
103.3

 
—

 
354.4

 
457.7

Non-recourse
 
1,616.0

 
1,010.0

 
—

 
2,626.0

Less: non-recourse debt owned by Trinity
 
—

 
(108.8
)
 
—

 
(108.8
)
Total debt
 
$
1,719.3

 
$
901.2

 
$
354.4

 
$
2,974.9

Net deferred tax liabilities
 
$
582.4

 
$
4.7

 
$
(152.4
)
 
$
434.7

Investment in TRIP Holdings and TRIP Holdings' debt 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
Percent
Change
 
2012
 
2011
 
Percent
Change
 
 
($ in millions)
 
 
($ in millions)
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Wholly owned subsidiaries:
 
 
 
 
 
 
 
 
 
 
 
 
Leasing and management
 
$
106.4

 
$
94.6

 
12.5
%
 
$
306.9

 
$
277.8

 
10.5
%
Railcar sales(1)
 
23.4

 
23.6

 
*
 
100.5

 
30.2

 
*
 
 
129.8

 
118.2

 
9.8

 
407.4

 
308.0

 
32.3

TRIP Holdings:
 
 
 
 
 
 
 
 
 
 
 
 
Leasing and management
 
30.1

 
29.2

 
3.1

 
89.0

 
87.4

 
1.8

Railcar sales(1)
 
—

 
—

 
—

 
—

 
—

 
—

 
 
30.1

 
29.2

 
3.1

 
89.0

 
87.4

 
1.8

Total revenues
 
$
159.9

 
$
147.4

 
8.5

 
$
496.4

 
$
395.4

 
25.5

Operating Profit:
 
 
 
 
 
 
 
 
 
 
 
 
Wholly owned subsidiaries:
 
 
 
 
 
 
 
 
 
 
 
 
Leasing and management
 
$
47.1

 
$
40.3

 
 
 
$
134.2

 
$
116.3

 
 
Railcar sales(1):
 
 
 
 
 
 
 
 
 
 
 
 
Railcars owned one year or less at the time of sale
 
4.3

 
4.9

 
 
 
20.7

 
7.9

 
 
Railcars owned more than one year at the time of sale
 
15.9

 
1.6

 
 
 
21.6

 
3.0

 
 
 
 
67.3

 
46.8

 
 
 
176.5

 
127.2

 
 
TRIP Holdings:
 
 
 
 
 
 
 
 
 
 
 
 
Leasing and management
 
16.7

 
17.4

 
 
 
50.8

 
51.3

 
 
Railcar sales(1):
 
 
 
 
 
 
 
 
 
 
 
 
Railcars owned one year or less at the time of sale
 
—

 
—

 
 
 
—

 
—

 
 
Railcars owned more than one year at the time of sale
 
1.1

 
—

 
 
 
0.7

 
0.1

 
 
 
 
17.8

 
17.4

 
 
 
51.5

 
51.4

 
 
Total operating profit
 
$
85.1

 
$
64.2

 
 
 
$
228.0

 
$
178.6

 
 
Operating profit margin:
 
 
 
 
 
 
 
 
 
 
 
 
Leasing and management
 
46.7
%
 
46.6
%
 
 
 
46.7
%
 
45.9
%
 
 
Railcar sales(1)
 
*
 
*
 
 
 
*
 
*
 
 
Total operating profit margin
 
53.2

 
43.6

 
 
 
45.9

 
45.2

 
 
Interest and rent expense(2):
 
 
 
 
 
 
 
 
 
 
 
 
Rent expense
 
$
12.7

 
$
12.1

 
 
 
$
38.2

 
$
36.4

 
 
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
Wholly-owned subsidiaries
 
$
24.3

 
$
24.8

 
 
 
$
73.2

 
$
75.4

 
 
TRIP Holdings:
 
 
 
 
 
 
 
 
 
 
 
 
External
 
15.0

 
15.3

 
 
 
45.2

 
37.6

 
 
Intercompany
 
3.3

 
3.2

 
 
 
9.8

 
3.2

 
 
 
 
18.3

 
18.5

 
 
 
55.0

 
40.8

 
 
Total interest expense
 
$
42.6

 
$
43.3

 
 
 
$
128.2

 
$
116.2

 
 
 * Not meaningful

(1)
Effective December 31, 2011, the Company adopted the emerging industry policy of recognizing revenue 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 by the lease fleet for one year or less at the time of sale. Sales of railcars from the lease fleet which have been owned by the lease fleet for more than one year are recognized as a net gain or loss from the disposal of a long-term asset. Prior year reported balances have been reclassified to conform to this policy.

(2)
Rent expense is a component of operating profit. Interest expense is not a component of operating profit and includes the effect of hedges. Intercompany interest expense arises from Trinity’s ownership of a portion of TRIP Holdings’ Senior Secured Notes and is eliminated in consolidation. See Note 11 Debt.
Future contractual minimum rental revenues on leases 
Future contractual minimum rental revenues on leases are as follows:
 
 
Remaining
three months
of 2012
 
2013
 
2014
 
2015
 
2016
 
Thereafter
 
Total
 
 
(in millions)
Wholly-owned subsidiaries
 
$
73.5

 
$
261.0

 
$
210.7

 
$
167.0

 
$
128.6

 
$
268.8

 
$
1,109.6

TRIP Holdings
 
24.8

 
85.5

 
64.1

 
52.3

 
43.2

 
70.1

 
340.0

 
 
$
98.3

 
$
346.5

 
$
274.8

 
$
219.3

 
$
171.8

 
$
338.9

 
$
1,449.6

Future operating lease obligations and future contractual minimum rental revenues related to these leases 
Future operating lease obligations of the Leasing Group’s subsidiaries as well as future contractual minimum rental revenues related to these leases due to the Leasing Group are as follows:
 
 
Remaining three months of 2012
 
2013
 
2014
 
2015
 
2016
 
Thereafter
 
Total
 
 
(in millions)
Future operating lease obligations of Trusts’ railcars
 
$
11.4

 
$
45.6

 
$
44.8

 
$
43.1

 
$
40.1

 
$
341.3

 
$
526.3

Future contractual minimum rental revenues of Trusts’ railcars
 
$
15.7

 
$
51.1

 
$
36.4

 
$
28.2

 
$
19.9

 
$
37.0

 
$
188.3

Future amounts due and future contractual minimum rental revenues related to operating leases other than leases with the Trusts 
Future amounts due as well as future contractual minimum rental revenues related to operating leases other than leases with the Trusts are as follows: 
 
 
Remaining three months of 2012
 
2013
 
2014
 
2015
 
2016
 
Thereafter
 
Total
 
 
(in millions)
Future operating lease obligations
 
$
2.4

 
$
9.5

 
$
9.4

 
$
9.4

 
$
9.3

 
$
38.4

 
$
78.4

Future contractual minimum rental revenues
 
$
2.9

 
$
11.5

 
$
10.9

 
$
6.8

 
$
5.9

 
$
8.2

 
$
46.2

Investment in TRIP Holdings (Tables)
Companies carrying value of its investment in TRIP
The Company’s carrying value of its investment in TRIP Holdings is as follows:
 
 
September 30,
2012
 
December 31,
2011
 
 
(in millions)
Capital contributions
 
$
47.3

 
$
47.3

Equity purchased from investors
 
44.8

 
44.8

 
 
92.1

 
92.1

Equity in earnings
 
10.7

 
12.0

Equity in unrealized losses on derivative financial instruments
 
—

 
(1.3
)
Distributions
 
(7.0
)
 
(7.0
)
Deferred broker fees
 
(0.4
)
 
(0.6
)
 
 
$
95.4

 
$
95.2

Derivative Instruments (Tables)
Interest rate hedges 
Interest rate hedges
 
 
 
 
 
 
Included in accompanying balance sheet
at September 30, 2012
 
 
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
%
 
$
—

 
$
(2.0
)
 
$
—

Promissory notes
 
$
370.0

 
5.34
%
 
$
—

 
$
8.1

 
$
—

TRIP Holdings
 
$
788.5

 
3.60
%
 
$
—

 
$
20.8

 
$
15.6

Open hedges:
 
 
 
 
 
 
 
 
 
 
TRIP Master Funding secured railcar equipment notes
 
$
81.1

 
2.62
%
 
$
5.6

 
$
3.2

 
$
2.3

Promissory notes
 
$
451.7

 
4.13
%
 
$
41.9

 
$
40.5

 
$
—

(1) 
Weighted average fixed interest rate
Interest rate hedges effect on interest expense 
 
 
Effect on interest expense – increase/(decrease)
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
Expected effect during next twelve months(1)
 
 
2012
 
2011
 
2012
 
2011
 
 
 
(in millions)
Expired hedges:
 
 
 
 
 
 
 
 
 
 
2006 secured railcar equipment notes
 
$
(0.1
)
 
$
(0.1
)
 
$
(0.3
)
 
$
(0.3
)
 
$
(0.3
)
Promissory notes
 
$
0.8

 
$
0.9

 
$
2.5

 
$
2.7

 
$
3.2

TRIP Holdings
 
$
1.5

 
$
1.8

 
$
4.5

 
$
15.9

 
$
5.9

Open hedges:
 
 
 
 
 
 
 
 
 
 
TRIP Master Funding secured railcar equipment notes
 
$
0.5

 
$
0.5

 
$
1.5

 
$
0.5

 
$
1.8

Promissory notes
 
$
4.3

 
$
4.6

 
$
12.7

 
$
14.3

 
$
17.0

(1) 
Based on fair value as of September 30, 2012
Other Derivatives 
Other Derivatives
 
 
Effect on operating income – increase/(decrease)
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
2012
 
2011
 
 
(in millions)
Fuel hedges(1)
 
 
 
 
 
 
 
 
Effect of mark to market valuation
 
$
0.6

 
$
(0.2
)
 
$
0.6

 
$
0.0

Settlements
 
0.0

 
0.2

 
0.0

 
0.3

 
 
$
0.6

 
$
—

 
$
0.6

 
$
0.3

Foreign exchange hedges(2)
 
$
—

 
$
0.6

 
$
(0.4
)
 
$
0.0

(1) 
Included in cost of revenues in the accompanying consolidated statement of operations
(2) 
Included in other, net in the accompanying consolidated statement of operations
Property, Plant, and Equipment (Tables)
Components of property, plant, and equipment
The following table summarizes the components of property, plant, and equipment as of September 30, 2012 and December 31, 2011.
 
 
September 30,
2012
 
December 31,
2011
 
 
 
 
(as reported)
 
 
(in millions)
Manufacturing/Corporate:
 
 
 
 
Land
 
$
40.2

 
$
41.6

Buildings and improvements
 
438.6

 
429.7

Machinery and other
 
764.1

 
758.7

Construction in progress
 
35.6

 
12.8

 
 
1,278.5

 
1,242.8

Less accumulated depreciation
 
(761.9
)
 
(732.8
)
 
 
516.6

 
510.0

Leasing:
 
 
 
 
Wholly-owned subsidiaries:
 
 
 
 
Machinery and other
 
9.6

 
9.6

Equipment on lease
 
3,611.4

 
3,429.3

 
 
3,621.0

 
3,438.9

Less accumulated depreciation
 
(445.7
)
 
(372.9
)
 
 
3,175.3

 
3,066.0

TRIP Holdings:
 
 
 
 
Equipment on lease
 
1,272.3

 
1,257.7

Less accumulated depreciation
 
(145.2
)
 
(122.7
)
 
 
1,127.1

 
1,135.0

Net deferred profit on railcars sold to the Leasing Group
 
 
 
 
Sold to wholly-owned subsidiaries
 
(352.8
)
 
(344.5
)
Sold to TRIP Holdings
 
(182.5
)
 
(187.0
)
 
 
$
4,283.7

 
$
4,179.5

Goodwill (Tables)
Goodwill by Segment
Goodwill by segment is as follows:
 
 
September 30,
2012
 
December 31,
2011
 
 
 
 
(as reported)
 
 
(in millions)
Rail Group
 
$
122.5

 
$
122.5

Construction Products Group
 
94.6

 
90.7

Energy Equipment Group
 
10.9

 
10.9

Railcar Leasing and Management Services Group
 
1.8

 
1.8

 
 
$
229.8

 
$
225.9

Warranties (Tables)
Changes in the accruals for warranties
The changes in the accruals for warranties for the three and nine month periods ended September 30, 2012 and 2011 are as follows:

 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
2012
 
2011
 
 
(in millions)
Beginning balance
 
$
13.8

 
$
12.0

 
$
13.5

 
$
13.2

Warranty costs incurred
 
(1.1
)
 
(1.6
)
 
(5.0
)
 
(4.3
)
Warranty originations and revisions
 
2.6

 
2.1

 
7.8

 
4.6

Warranty expirations
 
(0.6
)
 
(0.9
)
 
(1.6
)
 
(1.9
)
Ending balance
 
$
14.7

 
$
11.6

 
$
14.7

 
$
11.6

Debt (Tables)
Components of debt 
The following table summarizes the components of debt as of September 30, 2012 and December 31, 2011:
 
 
September 30,
2012
 
December 31,
2011
 
 
 
 
(as reported)
 
 
(in millions)
Manufacturing/Corporate – Recourse:
 
 
 
 
Revolving credit facility
 
$
—

 
$
—

Convertible subordinated notes
 
450.0

 
450.0

Less: unamortized discount
 
(90.7
)
 
(99.8
)
 
 
359.3

 
350.2

Other
 
5.1

 
4.2

 
 
364.4

 
354.4

Leasing – Recourse:
 
 
 
 
Capital lease obligations
 
46.5

 
48.6

Term loan
 
51.4

 
54.7

 
 
97.9

 
103.3

Total recourse debt
 
462.3

 
457.7

 
 
 
 
 
Leasing – Non-recourse:
 
 
 
 
2006 secured railcar equipment notes
 
259.1

 
269.3

Promissory notes
 
445.5

 
465.5

2009 secured railcar equipment notes
 
211.6

 
218.4

2010 secured railcar equipment notes
 
345.0

 
354.3

TILC warehouse facility
 
385.7

 
308.5

TRIP Holdings senior secured notes:
 
 
 
 
Total outstanding
 
170.0

 
170.0

Less: owned by Trinity
 
(108.8
)
 
(108.8
)
 
 
61.2

 
61.2

TRIP Master Funding secured railcar equipment notes
 
807.7

 
840.0

Total non–recourse debt
 
2,515.8

 
2,517.2

 
 
 
 
 
Total debt
 
$
2,978.1

 
$
2,974.9

Total interest expense recognized on the convertible subordinated notes 
Total interest expense recognized on the Convertible Subordinated Notes for the three and nine months ended September 30, 2012 and 2011 is as follows:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
2012
 
2011
 
 
(in millions)
Coupon rate interest
 
$
4.4

 
$
4.4

 
$
13.1

 
$
13.1

Amortized debt discount
 
3.1

 
2.9

 
9.1

 
8.4

 
 
$
7.5

 
$
7.3

 
$
22.2

 
$
21.5

Remaining principal payments under existing debt agreements 
The remaining principal payments under existing debt agreements as of September 30, 2012 are as follows:
 
 
Remaining
three months
of 2012
 
2013
 
2014
 
2015
 
2016
 
Thereafter
 
 
(in millions)
Recourse:
 
 
Manufacturing/Corporate
 
$
0.3

 
$
1.7

 
$
2.4

 
$
0.2

 
$
0.2

 
$
450.3

Leasing – capital lease obligations (Note 5)
 
0.7

 
2.9

 
3.1

 
3.3

 
3.5

 
33.0

Leasing – term loan (Note 5)
 
0.7

 
3.0

 
3.2

 
3.4

 
41.1

 
—

Non-recourse – leasing (Note 5):
 
 
 
 
 
 
 
 
 
 
 
 
2006 secured railcar equipment notes
 
3.3

 
15.1

 
16.9

 
18.6

 
21.9

 
183.3

Promissory notes
 
21.3

 
28.5

 
25.4

 
22.7

 
347.6

 
—

2009 secured railcar equipment notes
 
2.4

 
10.2

 
9.9

 
9.6

 
6.5

 
173.0

2010 secured railcar equipment notes
 
3.5

 
14.6

 
14.0

 
15.3

 
15.0

 
282.6

TILC warehouse facility
 
2.0

 
10.7

 
5.9

 
—

 
—

 
—

TRIP Holdings senior secured notes:
 
 
 
 
 
 
 
 
 
 
 
 
Total outstanding
 
—

 
—

 
170.0

 
—

 
—

 
—

Less: owned by Trinity
 
—

 
—

 
(108.8
)
 
—

 
—

 
—

 
 
 
 
 
 
61.2

 
 
 
 
 
 
TRIP Master Funding secured railcar equipment notes
 
9.9

 
41.0

 
40.1

 
35.7

 
29.3

 
651.7

Facility termination payments - TILC warehouse facility
 
—

 
122.4

 
244.7

 
—

 
—

 
—

Total principal payments
 
$
44.1

 
$
250.1

 
$
426.8

 
$
108.8

 
$
465.1

 
$
1,773.9

Other, Net (Tables)
Other, net (income) expense
Other, net (income) expense consists of the following items:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
2012
 
2011
 
 
(in millions)
Foreign currency exchange transactions
 
$
(0.4
)
 
$
3.0

 
$
(1.8
)
 
$
3.1

Gain on equity investments
 
(0.2
)
 
(0.1
)
 
(0.3
)
 
(0.6
)
Other
 
(0.8
)
 
2.4

 
(2.3
)
 
1.7

Other, net
 
$
(1.4
)
 
$
5.3

 
$
(4.4
)
 
$
4.2

Income Taxes (Tables)
Reconciliation between the statutory United States federal income tax rate and the Company's effective income tax rate 
The following is a reconciliation between the statutory United States Federal income tax rate and the Company’s effective income tax rate:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
2012
 
2011
Statutory rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
%
State taxes
 
2.0

 
3.2

 
2.0

 
2.8

Tax settlements
 
0.0

 
0.0

 
(0.8
)
 
0.0

Changes in tax reserves
 
(1.6
)
 
(0.9
)
 
(0.6
)
 
0.3

Foreign tax adjustments
 
(1.0
)
 
2.1

 
(0.6
)
 
0.3

Other, net
 
(0.2
)
 
0.6

 
(0.1
)
 
1.2

Effective rate
 
34.2
 %
 
40.0
 %
 
34.9
 %
 
39.6
%
Change in unrecognized tax benefits 
The change in unrecognized tax benefits for the nine months ended September 30, 2012 and 2011 was as follows:
 
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
 
(in millions)
Beginning balance
 
$
52.5

 
$
36.8

Additions for tax positions related to the current year
 
3.1

 
2.9

Additions for tax positions of prior years
 
—

 
15.1

Reductions for tax positions of prior years
 
(1.1
)
 
(0.1
)
Settlements
 
(3.4
)
 
(3.5
)
Expiration of statute of limitations
 
(0.8
)
 
(0.5
)
Ending balance
 
$
50.3

 
$
50.7

Employee Retirement Plans (Tables)
Components of net retirement cost
The following table summarizes the components of net retirement cost for the Company:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2012
 
2011
 
2012
 
2011
 
 
(in millions)
Service cost
 
$
0.2

 
$
0.2

 
$
0.6

 
$
0.7

Interest
 
4.9

 
4.9

 
14.6

 
14.7

Expected return on plan assets
 
(5.7
)
 
(5.7
)
 
(17.1
)
 
(17.1
)
Actuarial loss
 
0.7

 
0.4

 
2.5

 
1.4

Prior service cost
 
0.1

 
0.1

 
0.1

 
0.1

Defined benefit expense
 
0.2

 
(0.1
)
 
0.7

 
(0.2
)
Profit sharing
 
3.1

 
1.9

 
8.9

 
6.4

Net expense
 
$
3.3

 
$
1.8

 
$
9.6

 
$
6.2

Accumulated Other Comprehensive Loss (Tables)
Components of accumulated other comprehensive loss
Changes in accumulated other comprehensive loss for the nine months ended September 30, 2012 are as follows:
 
 
Currency
translation
adjustments
 
Unrealized
loss on
derivative
financial
instruments
 
Funded
status of
pension
liability
 
Accumulated
Other
Comprehensive
Loss
 
 
(in millions)
Balance at December 31, 2011
 
$
(17.1
)
 
$
(46.2
)
 
$
(70.7
)
 
$
(134.0
)
Other comprehensive income
 
0.6

 
6.3

 
1.6

 
8.5

Balance at September 30, 2012, net of tax expense (benefit) of $0.2, $(30.6), $(40.7) and $(71.1)
 
$
(16.5
)
 
$
(39.9
)
 
$
(69.1
)
 
$
(125.5
)
Earnings Per Common Share (Tables)
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. is as follows:
 
 
Three Months Ended
September 30, 2012
 
Three Months Ended
September 30, 2011
 
 
(in millions, except per share amounts)
 
 
Income
(Loss)
 
Average
Shares
 
EPS
 
Income
(Loss)
 
Average
Shares
 
EPS
Net income attributable to Trinity Industries, Inc.
 
$
63.2

 
 
 
 
 
$
31.9

 
 
 
 
Unvested restricted share participation
 
(2.1
)
 
 
 
 
 
(1.0
)
 
 
 
 
Net income attributable to Trinity Industries, Inc. – basic
 
61.1

 
76.5

 
$
0.80

 
30.9

 
77.7

 
$
0.40

Effect of dilutive securities:
 
 
 
 
 
 
 
 
 
 
 
 
Stock options
 
—

 
0.2

 
 
 
—

 
0.2

 
 
Net income attributable to Trinity Industries, Inc. – diluted
 
$
61.1

 
76.7

 
$
0.80

 
$
30.9

 
77.9

 
$
0.40

 
 
 
Nine Months Ended
September 30, 2012
 
Nine Months Ended
September 30, 2011
 
 
(in millions, except per share amounts)
 
 
Income
(Loss)
 
Average
Shares
 
EPS
 
Income
(Loss)
 
Average
Shares
 
EPS
Net income attributable to Trinity Industries, Inc.
 
$
183.9

 
 
 
 
 
$
86.1

 
 
 
 
Unvested restricted share participation
 
(6.1
)
 
 
 
 
 
(2.9
)
 
 
 
 
Net income attributable to Trinity Industries, Inc. – basic
 
177.8

 
77.3

 
$
2.30

 
83.2

 
77.4

 
$
1.07

Effect of dilutive securities:
 
 
 
 
 
 
 
 
 
 
 
 
Stock options
 
—

 
0.2

 
 
 
—

 
0.3

 
 
Net income attributable to Trinity Industries, Inc. – diluted
 
$
177.8

 
77.5

 
$
2.29

 
$
83.2

 
77.7

 
$
1.07

Summary of Significant Accounting Policies (Details) (USD $)
1 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Dec. 31, 2011
Summary of Significant Accounting Policies (Textual) [Abstract]
 
 
 
 
 
 
Authorized amount from board of directors for share repurchase
$ 200,000,000 
 
 
 
 
 
Share repurchase program effective date - current plan
Oct. 01, 2012 
Oct. 01, 2012 
 
Oct. 01, 2012 
 
 
Share repurchase program expiry date - current plan
Dec. 31, 2014 
Dec. 31, 2014 
 
Dec. 31, 2014 
 
 
Stock repurchase program expiry date - expired plan
Sep. 30, 2012 
Sep. 30, 2012 
 
Sep. 30, 2012 
 
 
Number of shares repurchased
 
141,992 
0 
1,834,221 
0 
 
Cost of shares repurchased
 
4,000,000 
 
45,200,000 
 
 
Net receivables from a single customer in Energy Equipment Group
22.00% 
22.00% 
 
22.00% 
 
 
Maximum period that sale from lease fleet is recorded as revenue
 
 
 
 
 
1 year 
Minimum period after which sale from lease fleet is recognized as net gain or loss
 
 
 
 
 
1 year 
Decrease in revenue from reclassification adjustments of prior period
 
 
$ 5,700,000 
 
$ 17,900,000 
 
Acquisitions and Divestitures (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Acquisitions:
 
 
 
 
Net cash paid
 
 
$ 4.9 
$ 42.5 
Construction Products Group
 
 
 
 
Acquisitions:
 
 
 
 
Total cost
5.5 
32.8 
7.5 
56.4 
Net cash paid
4.9 
27.2 
4.9 
42.5 
Goodwill recorded
3.2 
22.3 
4.0 
29.3 
Divestitures:
 
 
 
 
Proceeds
0 
0 
2.1 
8.3 
Gain recognized
0 
0 
1.5 
0.7 
Goodwill charged off
$ 0 
$ 0 
$ 0.1 
$ 1.0 
Fair Value Accounting (Details) (Fair value measurements, recurring, USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Level 1
 
 
Assets:
 
 
Cash equivalents
$ 200.6 
$ 246.6 
Restricted cash
234.8 
240.3 
Total assets
435.4 
486.9 
Liabilities:
 
 
Total liabilities
0 
0 
Level 1 |
Equity call agreement with TRIP Holdings equity investor
 
 
Assets:
 
 
Equity call agreement with TRIP Holdings equity investor
0 1
0 1
Level 1 |
Fuel derivative instruments
 
 
Assets:
 
 
Fuel derivative instruments
0 1
 
Liabilities:
 
 
Fuel derivative instruments
 
0 2
Level 1 |
Equity put agreement with TRIP Holdings equity investor
 
 
Liabilities:
 
 
Equity put agreement with TRIP Holdings equity investor
0 3
0 3
Level 1 |
Wholly-owned subsidiaries |
Interest rate hedges
 
 
Liabilities:
 
 
Interest rate hedges
0 2
0 2
Level 1 |
TRIP Holdings |
Interest rate hedges
 
 
Liabilities:
 
 
Interest rate hedges
0 2
0 2
Level 2
 
 
Assets:
 
 
Cash equivalents
0 
0 
Restricted cash
0 
0 
Total assets
0.4 
0 
Liabilities:
 
 
Total liabilities
47.5 
53.8 
Level 2 |
Equity call agreement with TRIP Holdings equity investor
 
 
Assets:
 
 
Equity call agreement with TRIP Holdings equity investor
0 1
0 1
Level 2 |
Fuel derivative instruments
 
 
Assets:
 
 
Fuel derivative instruments
0.4 1
 
Liabilities:
 
 
Fuel derivative instruments
 
0.1 2
Level 2 |
Equity put agreement with TRIP Holdings equity investor
 
 
Liabilities:
 
 
Equity put agreement with TRIP Holdings equity investor
0 3
0 3
Level 2 |
Wholly-owned subsidiaries |
Interest rate hedges
 
 
Liabilities:
 
 
Interest rate hedges
41.9 2
48.9 2
Level 2 |
TRIP Holdings |
Interest rate hedges
 
 
Liabilities:
 
 
Interest rate hedges
5.6 2
4.8 2
Level 3
 
 
Assets:
 
 
Cash equivalents
0 
0 
Restricted cash
0 
0 
Total assets
0.2 
0.7 
Liabilities:
 
 
Total liabilities
1.2 
3.1 
Level 3 |
Equity call agreement with TRIP Holdings equity investor
 
 
Assets:
 
 
Equity call agreement with TRIP Holdings equity investor
0.2 1
0.7 1
Level 3 |
Fuel derivative instruments
 
 
Assets:
 
 
Fuel derivative instruments
0 1
 
Liabilities:
 
 
Fuel derivative instruments
 
0 2
Level 3 |
Equity put agreement with TRIP Holdings equity investor
 
 
Liabilities:
 
 
Equity put agreement with TRIP Holdings equity investor
1.2 3
3.1 3
Level 3 |
Wholly-owned subsidiaries |
Interest rate hedges
 
 
Liabilities:
 
 
Interest rate hedges
0 2
0 2
Level 3 |
TRIP Holdings |
Interest rate hedges
 
 
Liabilities:
 
 
Interest rate hedges
0 2
0 2
Total
 
 
Assets:
 
 
Cash equivalents
200.6 
246.6 
Restricted cash
234.8 
240.3 
Total assets
436.0 
487.6 
Liabilities:
 
 
Total liabilities
48.7 
56.9 
Total |
Equity call agreement with TRIP Holdings equity investor
 
 
Assets:
 
 
Equity call agreement with TRIP Holdings equity investor
0.2 1
0.7 1
Total |
Fuel derivative instruments
 
 
Assets:
 
 
Fuel derivative instruments
0.4 1
 
Liabilities:
 
 
Fuel derivative instruments
 
0.1 2
Total |
Equity put agreement with TRIP Holdings equity investor
 
 
Liabilities:
 
 
Equity put agreement with TRIP Holdings equity investor
1.2 3
3.1 3
Total |
Wholly-owned subsidiaries |
Interest rate hedges
 
 
Liabilities:
 
 
Interest rate hedges
41.9 2
48.9 2
Total |
TRIP Holdings |
Interest rate hedges
 
 
Liabilities:
 
 
Interest rate hedges
$ 5.6 2
$ 4.8 2
Fair Value Accounting (Details 1) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Carrying amounts and estimated fair values of long-term debt
 
 
Less: unamortized discount
$ (90.7)1
$ (99.8)
Notes payable
1,646.9 1
1,616.0 
Total debt
2,978.1 1
2,974.9 
Manufacturing/Corporate
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Total debt
364.4 
354.4 
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Total debt
1,744.8 
1,719.3 
TRIP Holdings |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Total debt
868.9 
901.2 
Recourse
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Less: unamortized discount
(90.7)
(99.8)
Total debt
462.3 
457.7 
Recourse |
Manufacturing/Corporate
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Less: unamortized discount
 
(99.8)
Total debt
364.4 
354.4 
Recourse |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Less: unamortized discount
0 
0 
Total debt
97.9 
103.3 
Recourse |
TRIP Holdings |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Less: unamortized discount
0 
0 
Total debt
0 
0 
Carrying Value
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Total debt
2,978.1 
2,974.9 
Carrying Value |
Recourse
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Total debt
462.3 
457.7 
Carrying Value |
Recourse |
Manufacturing/Corporate
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Convertible subordinated notes
450.0 
450.0 
Less: unamortized discount
(90.7)
(99.8)
Convertible subordinated notes, total
359.3 
350.2 
Other
5.1 
4.2 
Total debt
364.4 
354.4 
Carrying Value |
Recourse |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Total debt
97.9 
103.3 
Carrying Value |
Recourse |
Capital lease obligations |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Capital lease obligations
46.5 
48.6 
Carrying Value |
Recourse |
Term loan |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Loans payable
51.4 
54.7 
Carrying Value |
Non-recourse |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Total debt
2,515.8 
2,517.2 
Carrying Value |
Non-recourse |
2006 secured railcar equipment notes |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Notes payable
259.1 
269.3 
Carrying Value |
Non-recourse |
Promissory notes |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Notes payable
445.5 
465.5 
Carrying Value |
Non-recourse |
2009 secured railcar equipment notes |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Notes payable
211.6 
218.4 
Carrying Value |
Non-recourse |
2010 secured railcar equipment notes |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Notes payable
345.0 
354.3 
Carrying Value |
Non-recourse |
TILC warehouse facility |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Loans payable
385.7 
308.5 
Carrying Value |
Non-recourse |
TRIP Holdings senior secured notes |
TRIP Holdings |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
TRIP Holdings senior secured notes
61.2 
61.2 
Carrying Value |
Non-recourse |
TRIP Master Funding secured railcar equipment notes |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Notes payable
807.7 
840.0 
Estimated Fair Value
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Total debt
3,275.5 
3,041.7 
Estimated Fair Value |
Recourse
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Total debt
571.8 
547.9 
Estimated Fair Value |
Recourse |
Manufacturing/Corporate
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Convertible subordinated notes
465.7 
439.4 
Other
5.1 
4.2 
Estimated Fair Value |
Recourse |
Capital lease obligations |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Capital lease obligations
46.5 
48.6 
Estimated Fair Value |
Recourse |
Term loan |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Loans payable
54.5 
55.7 
Estimated Fair Value |
Non-recourse |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Total debt
2,703.7 
2,493.8 
Estimated Fair Value |
Non-recourse |
2006 secured railcar equipment notes |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Notes payable
287.2 
278.5 
Estimated Fair Value |
Non-recourse |
Promissory notes |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Notes payable
431.2 
448.6 
Estimated Fair Value |
Non-recourse |
2009 secured railcar equipment notes |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Notes payable
251.8 
228.6 
Estimated Fair Value |
Non-recourse |
2010 secured railcar equipment notes |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Notes payable
371.6 
333.1 
Estimated Fair Value |
Non-recourse |
TILC warehouse facility |
Wholly-owned subsidiaries |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Loans payable
385.7 
308.5 
Estimated Fair Value |
Non-recourse |
TRIP Holdings senior secured notes |
TRIP Holdings |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
TRIP Holdings senior secured notes
62.5 
61.6 
Estimated Fair Value |
Non-recourse |
TRIP Master Funding secured railcar equipment notes |
Railcar Leasing and Management Services Group
 
 
Carrying amounts and estimated fair values of long-term debt
 
 
Notes payable
$ 913.7 
$ 834.9 
Segment Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Financial Information from continuing operations for segments
 
 
 
 
Revenues - External
$ 937.5 
$ 791.1 
$ 2,891.2 
$ 2,133.6 
Revenues - Intersegment
0 
0 
0 
0 
Revenues - Total
937.5 
791.1 
2,891.2 
2,133.6 
Operating Profit (Loss)
141.9 
105.4 
419.2 
286.3 
Rail Group
 
 
 
 
Financial Information from continuing operations for segments
 
 
 
 
Revenues - External
328.3 
227.7 
1,049.7 
556.0 
Revenues - Intersegment
129.6 
93.2 
392.2 
265.4 
Revenues - Total
457.9 
320.9 
1,441.9 
821.4 
Operating Profit (Loss)
35.2 
18.2 
128.3 
42.9 
Construction Products Group
 
 
 
 
Financial Information from continuing operations for segments
 
 
 
 
Revenues - External
148.2 
161.1 
449.4 
439.2 
Revenues - Intersegment
6.1 
3.7 
16.7 
8.5 
Revenues - Total
154.3 
164.8 
466.1 
447.7 
Operating Profit (Loss)
12.7 
17.8 
38.7 
42.2 
Inland Barge Group
 
 
 
 
Financial Information from continuing operations for segments
 
 
 
 
Revenues - External
166.5 
143.2 
509.8 
398.9 
Revenues - Intersegment
0 
0 
0 
0 
Revenues - Total
166.5 
143.2 
509.8 
398.9 
Operating Profit (Loss)
26.9 
26.0 
93.5 
66.8 
Energy Equipment Group
 
 
 
 
Financial Information from continuing operations for segments
 
 
 
 
Revenues - External
131.0 
107.3 
377.7 
335.6 
Revenues - Intersegment
4.6 
4.3 
13.6 
12.2 
Revenues - Total
135.6 
111.6 
391.3 
347.8 
Operating Profit (Loss)
9.5 
(1.9)
9.7 
9.8 
Railcar Leasing and Management Services Group
 
 
 
 
Financial Information from continuing operations for segments
 
 
 
 
Revenues - External
159.3 
147.4 
493.7 
395.4 
Revenues - Intersegment
0.6 
0 
2.7 
0 
Revenues - Total
159.9 
147.4 
496.4 
395.4 
Operating Profit (Loss)
85.1 
64.2 
228.0 
178.6 
All Other
 
 
 
 
Financial Information from continuing operations for segments
 
 
 
 
Revenues - External
4.2 
4.4 
10.9 
8.5 
Revenues - Intersegment
20.4 
13.6 
50.2 
36.9 
Revenues - Total
24.6 
18.0 
61.1 
45.4 
Operating Profit (Loss)
(2.0)
(0.3)
(7.1)
(0.8)
Corporate
 
 
 
 
Financial Information from continuing operations for segments
 
 
 
 
Revenues - External
0 
0 
0 
0 
Revenues - Intersegment
0 
0 
0 
0 
Revenues - Total
0 
0 
0 
0 
Operating Profit (Loss)
(12.4)
(11.5)
(33.6)
(30.6)
Eliminations - Lease subsidiary
 
 
 
 
Financial Information from continuing operations for segments
 
 
 
 
Revenues - External
0 
0 
0 
0 
Revenues - Intersegment
(125.9)
(87.9)
(380.8)
(252.8)
Revenues - Total
(125.9)
(87.9)
(380.8)
(252.8)
Operating Profit (Loss)
(14.1)
(8.1)
(37.2)
(23.3)
Eliminations - Other
 
 
 
 
Financial Information from continuing operations for segments
 
 
 
 
Revenues - External
0 
0 
0 
0 
Revenues - Intersegment
(35.4)
(26.9)
(94.6)
(70.2)
Revenues - Total
(35.4)
(26.9)
(94.6)
(70.2)
Operating Profit (Loss)
$ 1.0 
$ 1.0 
$ (1.1)
$ 0.7 
Segment Information (Details Textual)
Sep. 30, 2012
segments
Dec. 31, 2011
Segment Information (Textual) [Abstract]
 
 
Number of principal business segments of Company
5 
 
Maximum period that sale from lease fleet is recorded as revenue
 
1 year 
Minimum period after which sale from lease fleet is recognized as net gain or loss
 
1 year 
Railcar Leasing and Management Services Group (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Consolidating Financial Information
 
 
Cash and cash equivalents
$ 312.2 
$ 351.1 
Property, plant, and equipment, net
4,819.0 
4,711.0 
Net deferred profit on railcars sold to the Leasing Group
(535.3)
(531.5)
Property, plant and equipment, net
4,283.7 1
4,179.5 
Restricted cash
234.8 1
240.3 
Debt:
 
 
Less: unamortized discount
(90.7)1
(99.8)
Total debt
2,978.1 1
2,974.9 
Net deferred tax liabilities
543.0 1
434.7 
Recourse
 
 
Debt:
 
 
Recourse
553.0 
557.5 
Less: unamortized discount
(90.7)
(99.8)
Total debt
462.3 
457.7 
Non-Recourse
 
 
Debt:
 
 
Non-recourse
2,624.6 
2,626.0 
Less: non-recourse debt owned by Trinity
(108.8)
(108.8)
TRIP Holdings
 
 
Consolidating Financial Information
 
 
Restricted cash
59.0 1
74.6 
Leasing Group |
Wholly-owned subsidiaries
 
 
Consolidating Financial Information
 
 
Cash and cash equivalents
5.0 
3.2 
Property, plant, and equipment, net
3,175.3 
3,066.0 
Net deferred profit on railcars sold to the Leasing Group
(352.8)
(344.5)
Property, plant and equipment, net
2,822.5 
2,721.5 
Restricted cash
175.8 
165.7 
Debt:
 
 
Total debt
1,744.8 
1,719.3 
Net deferred tax liabilities
622.4 
582.4 
Leasing Group |
Wholly-owned subsidiaries |
Recourse
 
 
Debt:
 
 
Recourse
97.9 
103.3 
Less: unamortized discount
0 
0 
Total debt
97.9 
103.3 
Leasing Group |
Wholly-owned subsidiaries |
Non-Recourse
 
 
Debt:
 
 
Non-recourse
1,646.9 
1,616.0 
Less: non-recourse debt owned by Trinity
0 
0 
Leasing Group |
TRIP Holdings
 
 
Consolidating Financial Information
 
 
Cash and cash equivalents
0 
0 
Property, plant, and equipment, net
1,127.1 
1,135.0 
Net deferred profit on railcars sold to the Leasing Group
(182.5)
(187.0)
Property, plant and equipment, net
944.6 
948.0 
Restricted cash
59.0 
74.6 
Debt:
 
 
Total debt
868.9 
901.2 
Net deferred tax liabilities
5.1 
4.7 
Leasing Group |
TRIP Holdings |
Recourse
 
 
Debt:
 
 
Recourse
0 
0 
Less: unamortized discount
0 
0 
Total debt
0 
0 
Leasing Group |
TRIP Holdings |
Non-Recourse
 
 
Debt:
 
 
Non-recourse
977.7 
1,010.0 
Less: non-recourse debt owned by Trinity
(108.8)
(108.8)
Manufacturing/Corporate
 
 
Consolidating Financial Information
 
 
Cash and cash equivalents
307.2 
347.9 
Property, plant, and equipment, net
516.6 
510.0 
Net deferred profit on railcars sold to the Leasing Group
0 
0 
Property, plant and equipment, net
516.6 
510.0 
Restricted cash
0 
0 
Debt:
 
 
Total debt
364.4 
354.4 
Net deferred tax liabilities
(84.5)
(152.4)
Manufacturing/Corporate |
Recourse
 
 
Debt:
 
 
Recourse
455.1 
454.2 
Less: unamortized discount
 
(99.8)
Total debt
364.4 
354.4 
Manufacturing/Corporate |
Non-Recourse
 
 
Debt:
 
 
Non-recourse
0 
0 
Less: non-recourse debt owned by Trinity
0 
0 
Carrying Value
 
 
Debt:
 
 
Total debt
2,978.1 
2,974.9 
Carrying Value |
Recourse
 
 
Debt:
 
 
Total debt
462.3 
457.7 
Carrying Value |
Leasing Group |
Non-Recourse
 
 
Debt:
 
 
Total debt
2,515.8 
2,517.2 
Carrying Value |
Leasing Group |
Wholly-owned subsidiaries |
Recourse
 
 
Debt:
 
 
Total debt
97.9 
103.3 
Carrying Value |
Manufacturing/Corporate |
Recourse
 
 
Debt:
 
 
Less: unamortized discount
(90.7)
(99.8)
Total debt
$ 364.4 
$ 354.4 
Railcar Leasing and Management Services Group (Details 1) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Operating Profit:
 
 
 
 
Total operating profit
$ 141.9 
$ 105.4 
$ 419.2 
$ 286.3 
Interest and rent expense:
 
 
 
 
Total interest expense
47.8 
47.9 
143.6 
136.2 
Leasing Group
 
 
 
 
Revenues:
 
 
 
 
Total revenues
159.9 
147.4 
496.4 
395.4 
Percent Change
8.50% 
 
25.50% 
 
Operating Profit:
 
 
 
 
Total operating profit
85.1 
64.2 
228.0 
178.6 
Operating profit margin:
 
 
 
 
Total operating profit margin
53.20% 
43.60% 
45.90% 
45.20% 
Interest and rent expense:
 
 
 
 
Rent expense
12.7 1
12.1 1
38.2 1
36.4 1
Total interest expense
42.6 1
43.3 1
128.2 1
116.2 1
Leasing Group |
Leasing and management
 
 
 
 
Operating profit margin:
 
 
 
 
Total operating profit margin
46.70% 
46.60% 
46.70% 
45.90% 
Leasing Group |
Wholly-owned subsidiaries
 
 
 
 
Revenues:
 
 
 
 
Total revenues
129.8 
118.2 
407.4 
308.0 
Percent Change
9.80% 
 
32.30% 
 
Operating Profit:
 
 
 
 
Total operating profit
67.3 2
46.8 2
176.5 2
127.2 2
Interest and rent expense:
 
 
 
 
Total interest expense
24.3 1
24.8 1
73.2 1
75.4 1
Leasing Group |
Wholly-owned subsidiaries |
Leasing and management
 
 
 
 
Revenues:
 
 
 
 
Total revenues
106.4 
94.6 
306.9 
277.8 
Percent Change
12.50% 
 
10.50% 
 
Operating Profit:
 
 
 
 
Total operating profit
47.1 
40.3 
134.2 
116.3 
Leasing Group |
Wholly-owned subsidiaries |
Railcar sales
 
 
 
 
Revenues:
 
 
 
 
Total revenues
23.4 2
23.6 2
100.5 2
30.2 2
Leasing Group |
Wholly-owned subsidiaries |
Railcars owned one year or less at the time of sale
 
 
 
 
Operating Profit:
 
 
 
 
Total operating profit
4.3 2
4.9 2
20.7 2
7.9 2
Leasing Group |
Wholly-owned subsidiaries |
Railcars owned more than one year at the time of sale
 
 
 
 
Operating Profit:
 
 
 
 
Total operating profit
15.9 2
1.6 2
21.6 2
3.0 2
Leasing Group |
TRIP Holdings
 
 
 
 
Revenues:
 
 
 
 
Total revenues
30.1 
29.2 
89.0 
87.4 
Percent Change
3.10% 
 
1.80% 
 
Operating Profit:
 
 
 
 
Total operating profit
17.8 2
17.4 2
51.5 2
51.4 2
Interest and rent expense:
 
 
 
 
Interest expense external
15.0 1
15.3 1
45.2 1
37.6 1
Interest expense intercompany
3.3 1
3.2 1
9.8 1
3.2 1
Total interest expense
18.3 1
18.5 1
55.0 1
40.8 1
Leasing Group |
TRIP Holdings |
Leasing and management
 
 
 
 
Revenues:
 
 
 
 
Total revenues
30.1 
29.2 
89.0 
87.4 
Percent Change
3.10% 
 
1.80% 
 
Operating Profit:
 
 
 
 
Total operating profit
16.7 
17.4 
50.8 
51.3 
Leasing Group |
TRIP Holdings |
Railcar sales
 
 
 
 
Revenues:
 
 
 
 
Total revenues
0 2
0 2
0 2
0 2
Percent Change
0.00% 2
 
0.00% 2
 
Leasing Group |
TRIP Holdings |
Railcars owned one year or less at the time of sale
 
 
 
 
Operating Profit:
 
 
 
 
Total operating profit
0 2
0 2
0 2
0 2
Leasing Group |
TRIP Holdings |
Railcars owned more than one year at the time of sale
 
 
 
 
Operating Profit:
 
 
 
 
Total operating profit
$ 1.1 2
$ 0 2
$ 0.7 2
$ 0.1 2
Railcar Leasing and Management Services Group (Details 2) (Leasing Group, USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Future contractual minimum rental revenues on leases
 
Remaining three months of 2012
$ 98.3 
2013
346.5 
2014
274.8 
2015
219.3 
2016
171.8 
Thereafter
338.9 
Total
1,449.6 
Wholly-owned subsidiaries
 
Future contractual minimum rental revenues on leases
 
Remaining three months of 2012
73.5 
2013
261.0 
2014
210.7 
2015
167.0 
2016
128.6 
Thereafter
268.8 
Total
1,109.6 
TRIP Holdings
 
Future contractual minimum rental revenues on leases
 
Remaining three months of 2012
24.8 
2013
85.5 
2014
64.1 
2015
52.3 
2016
43.2 
Thereafter
70.1 
Total
$ 340.0 
Railcar Leasing and Management Services Group (Details 3) (Leasing Group, USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Future contractual minimum rental revenues on leases
 
Remaining three months of 2012
$ 98.3 
2013
346.5 
2014
274.8 
2015
219.3 
2016
171.8 
Thereafter
338.9 
Total
1,449.6 
Future operating lease obligations of Trusts' railcars
 
Future contractual minimum rental obligations on leases
 
Remaining three months of 2012
11.4 
2013
45.6 
2014
44.8 
2015
43.1 
2016
40.1 
Thereafter
341.3 
Total
526.3 
Future contractual minimum rental revenues of Trusts' railcars
 
Future contractual minimum rental revenues on leases
 
Remaining three months of 2012
15.7 
2013
51.1 
2014
36.4 
2015
28.2 
2016
19.9 
Thereafter
37.0 
Total
$ 188.3 
Railcar Leasing and Management Services Group (Details 4) (Leasing Group, USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Future contractual minimum rental revenues on leases
 
Remaining three months of 2012
$ 98.3 
2013
346.5 
2014
274.8 
2015
219.3 
2016
171.8 
Thereafter
338.9 
Total
1,449.6 
Future operating lease obligations of railcars other than those owned by the Trusts
 
Future contractual minimum rental obligations on leases
 
Remaining three months of 2012
2.4 
2013
9.5 
2014
9.4 
2015
9.4 
2016
9.3 
Thereafter
38.4 
Total
78.4 
Future contractual minimum rental revenues of railcars other than those owned by the Trusts
 
Future contractual minimum rental revenues on leases
 
Remaining three months of 2012
2.9 
2013
11.5 
2014
10.9 
2015
6.8 
2016
5.9 
Thereafter
8.2 
Total
$ 46.2 
Railcar Leasing and Management Services Group (Details Textual) (USD $)
In Millions, unless otherwise specified
1 Months Ended 9 Months Ended
Sep. 30, 2012
Dec. 31, 2011
Jul. 31, 2011
TRIP Holdings
Sep. 30, 2012
Leasing Group
Sep. 30, 2012
Leasing Group
Wholly-owned subsidiaries
Railcar Leasing and Management Services Group (Textual) [Abstract]
 
 
 
 
 
Maximum period that sale from lease fleet is recorded as revenue
 
1 year 
 
 
 
Minimum period after which sale from lease fleet is recognized as net gain or loss
 
1 year 
 
 
 
Period of lease contracts with third parties, range minimum
 
 
 
1 year 
 
Period of lease contracts with third parties, range maximum
 
 
 
20 years 
 
Net book value of equipment pledged as collateral for leasing group debt
 
 
 
 
$ 2,534.8 
Net book value of equipment securing capital lease obligations
 
 
 
 
49.9 
Net book value of unpledged equipment
 
 
 
 
544.4 
New debt issued to repay outstanding borrowings of TRIP Warehouse Loan
 
 
1,032.0 
 
 
Equipment net pledged as collateral for securing capital lease obligations
 
 
 
 
1,127.1 
Period of railcars leased from the Trusts under operating leases
 
 
 
 
22 years 
Total assets
6,419.1 1
6,121.0 
 
 
209.7 
Cash
 
 
 
 
83.2 
Railcars
 
 
 
 
94.0 
Operating lease obligations guaranteed
 
 
 
$ 27.0 
 
Investment in TRIP Holdings (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Investment In TRIP Holdings [Abstract]
 
 
Capital contributions
$ 47.3 
$ 47.3 
Equity purchased from investors
44.8 
44.8 
Total investment
92.1 
92.1 
Equity in earnings
10.7 
12.0 
Equity in unrealized losses on derivative financial instruments
0 
(1.3)
Distributions
(7.0)
(7.0)
Deferred broker fees
(0.4)
(0.6)
Carrying value of TRIP Holdings
$ 95.4 
$ 95.2 
Investment in TRIP Holdings (Details Textual) (USD $)
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended 9 Months Ended
Jul. 31, 2011
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Investment in TRIP Holdings (Textual) [Abstract]
 
 
 
 
 
Railcars purchased from the Company by subsidiaries of TRIP Holdings
 
$ 1,331.4 
 
$ 1,331.4 
 
Ownership percentage in TRIP Holdings
 
57.00% 
 
57.00% 
 
Number of other third-party equity investors in TRIP Holdings
 
3 
 
3 
 
TRIP Holdings
 
 
 
 
 
Investment in TRIP Holdings (Textual) [Abstract]
 
 
 
 
 
New debt issued to repay outstanding borrowings of TRIP Warehouse Loan
1,032.0 
 
 
 
 
Additional equity ownership to be acquired from the equity investor by the company if the option was exercised to its fullest extent
 
16.30% 
 
16.30% 
 
Percentage of the equity investor's net investment specified as amount payable to equity investor
 
90.00% 
 
90.00% 
 
Percentage of the equity investor's net investment specified as amount payable to equity investor under certain limited circumstances
 
100.00% 
 
100.00% 
 
Remaining equity commitment outstanding
 
0 
 
0 
 
Administrative fees to TILC by TRIP Holdings and subsidiaries
 
$ 1.2 
$ 1.2 
$ 3.7 
$ 3.1 
Derivative Instruments (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Interest rate hedges included in balance sheet
 
 
AOCL - loss/(income)
$ 39.9 
$ 46.2 
Designated as Hedging Instrument |
Expired hedges |
2006 secured railcar equipment notes
 
 
Interest rate hedges included in balance sheet
 
 
Notional Amount
200.0 
 
Interest Rate
4.87% 1
 
Liability
0 
 
AOCL - loss/(income)
(2.0)
 
Noncontrolling Interest
0 
 
Designated as Hedging Instrument |
Expired hedges |
Promissory notes
 
 
Interest rate hedges included in balance sheet
 
 
Notional Amount
370.0 
 
Interest Rate
5.34% 1
 
Liability
0 
 
AOCL - loss/(income)
8.1 
 
Noncontrolling Interest
0 
 
Designated as Hedging Instrument |
Expired hedges |
TRIP Holdings
 
 
Interest rate hedges included in balance sheet
 
 
Notional Amount
788.5 
 
Interest Rate
3.60% 1
 
Liability
0 
 
AOCL - loss/(income)
20.8 
 
Noncontrolling Interest
15.6 
 
Designated as Hedging Instrument |
Open hedges |
Promissory notes
 
 
Interest rate hedges included in balance sheet
 
 
Notional Amount
451.7 
 
Interest Rate
4.13% 1
 
Liability
41.9 
 
AOCL - loss/(income)
40.5 
 
Noncontrolling Interest
0 
 
Designated as Hedging Instrument |
Open hedges |
TRIP Master Funding secured railcar equipment notes
 
 
Interest rate hedges included in balance sheet
 
 
Notional Amount
81.1 
 
Interest Rate
2.62% 1
 
Liability
5.6 
 
AOCL - loss/(income)
3.2 
 
Noncontrolling Interest
$ 2.3 
 
Derivative Instruments (Details 1) (Designated as Hedging Instrument, USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Expired hedges |
2006 secured railcar equipment notes
 
 
 
 
Interest rate hedges effect on interest expense - increase/(decrease)
 
 
 
 
Effect on interest expense - increase/(decrease)
$ (0.1)
$ (0.1)
$ (0.3)
$ (0.3)
Expected effect during next twelve months
(0.3)1
 
(0.3)1
 
Expired hedges |
Promissory notes
 
 
 
 
Interest rate hedges effect on interest expense - increase/(decrease)
 
 
 
 
Effect on interest expense - increase/(decrease)
0.8 
0.9 
2.5 
2.7 
Expected effect during next twelve months
3.2 1
 
3.2 1
 
Expired hedges |
TRIP Holdings
 
 
 
 
Interest rate hedges effect on interest expense - increase/(decrease)
 
 
 
 
Effect on interest expense - increase/(decrease)
1.5 
1.8 
4.5 
15.9 
Expected effect during next twelve months
5.9 1
 
5.9 1
 
Open hedges |
Promissory notes
 
 
 
 
Interest rate hedges effect on interest expense - increase/(decrease)
 
 
 
 
Effect on interest expense - increase/(decrease)
4.3 
4.6 
12.7 
14.3 
Expected effect during next twelve months
17.0 1
 
17.0 1
 
Open hedges |
TRIP Master Funding secured railcar equipment notes
 
 
 
 
Interest rate hedges effect on interest expense - increase/(decrease)
 
 
 
 
Effect on interest expense - increase/(decrease)
0.5 
0.5 
1.5 
0.5 
Expected effect during next twelve months
$ 1.8 1
 
$ 1.8 1
 
Derivative Instruments (Details 2) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Fuel hedges
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Effect on operating income - increase/(decrease)
$ 0.6 1
$ 0 1
$ 0.6 1
$ 0.3 1
Effect of mark to market valuation
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Effect on operating income - increase/(decrease)
0.6 1
(0.2)1
0.6 1
0 1
Settlements
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Effect on operating income - increase/(decrease)
0 1
0.2 1
0 1
0.3 1
Foreign exchange hedges
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Effect on operating income - increase/(decrease)
$ 0 2
$ 0.6 2
$ (0.4)2
$ 0 2
Derivative Instruments (Details Textual) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Jul. 31, 2011
Interest Rate Swap, TRIP Master Funding secured railcar equipment notes
Sep. 30, 2012
Designated as Hedging Instrument
Expired hedges
2006 secured railcar equipment notes
Sep. 30, 2012
Designated as Hedging Instrument
Expired hedges
Promissory notes
Sep. 30, 2012
Designated as Hedging Instrument
Expired hedges
TRIP Holdings
Derivative Instruments (Textual) [Abstract]
 
 
 
 
 
Changes in fair value of cash flow hedges which is being amortized to income
 
 
$ 4.5 
$ 24.5 
 
Expected effect during next twelve months
 
 
(0.3)1
3.2 1
5.9 1
Interest rate swap, notional amount
 
94.1 
200.0 
370.0 
788.5 
Remaining AOCL balance of foreign exchange hedges with quarterly maturities
$ 0 
 
 
 
 
Property, Plant, and Equipment (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Components of property, plant, and equipment
 
 
Less accumulated depreciation
$ (1,352.8)1
$ (1,228.4)
Property plant and equipment net before adjustment to Net deferred profit
4,819.0 
4,711.0 
Net deferred profit on railcars sold to the Leasing Group
(535.3)
(531.5)
Property, plant and equipment, total
4,283.7 1
4,179.5 
TRIP Holdings
 
 
Components of property, plant, and equipment
 
 
Less accumulated depreciation
(145.2)1
(122.7)
Manufacturing/Corporate
 
 
Components of property, plant, and equipment
 
 
Property, plant and equipment
1,278.5 
1,242.8 
Less accumulated depreciation
(761.9)
(732.8)
Property plant and equipment net before adjustment to Net deferred profit
516.6 
510.0 
Net deferred profit on railcars sold to the Leasing Group
0 
0 
Property, plant and equipment, total
516.6 
510.0 
Leasing Group |
Wholly-owned subsidiaries
 
 
Components of property, plant, and equipment
 
 
Property, plant and equipment
3,621.0 
3,438.9 
Less accumulated depreciation
(445.7)
(372.9)
Property plant and equipment net before adjustment to Net deferred profit
3,175.3 
3,066.0 
Net deferred profit on railcars sold to the Leasing Group
(352.8)
(344.5)
Property, plant and equipment, total
2,822.5 
2,721.5 
Leasing Group |
TRIP Holdings
 
 
Components of property, plant, and equipment
 
 
Property, plant and equipment
1,272.3 
1,257.7 
Less accumulated depreciation
(145.2)
(122.7)
Property plant and equipment net before adjustment to Net deferred profit
1,127.1 
1,135.0 
Net deferred profit on railcars sold to the Leasing Group
(182.5)
(187.0)
Property, plant and equipment, total
944.6 
948.0 
Land |
Manufacturing/Corporate
 
 
Components of property, plant, and equipment
 
 
Property, plant and equipment
40.2 
41.6 
Buildings and improvements |
Manufacturing/Corporate
 
 
Components of property, plant, and equipment
 
 
Property, plant and equipment
438.6 
429.7 
Machinery and other |
Manufacturing/Corporate
 
 
Components of property, plant, and equipment
 
 
Property, plant and equipment
764.1 
758.7 
Machinery and other |
Leasing Group |
Wholly-owned subsidiaries
 
 
Components of property, plant, and equipment
 
 
Property, plant and equipment
9.6 
9.6 
Construction in progress |
Manufacturing/Corporate
 
 
Components of property, plant, and equipment
 
 
Property, plant and equipment
35.6 
12.8 
Equipment on lease |
Leasing Group |
Wholly-owned subsidiaries
 
 
Components of property, plant, and equipment
 
 
Property, plant and equipment
$ 3,611.4 
$ 3,429.3 
Goodwill (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Goodwill by Segment
 
 
Goodwill
$ 229.8 1
$ 225.9 
Rail Group
 
 
Goodwill by Segment
 
 
Goodwill
122.5 
122.5 
Construction Products Group
 
 
Goodwill by Segment
 
 
Goodwill
94.6 
90.7 
Energy Equipment Group
 
 
Goodwill by Segment
 
 
Goodwill
10.9 
10.9 
Railcar Leasing and Management Services Group
 
 
Goodwill by Segment
 
 
Goodwill
$ 1.8 
$ 1.8 
Warranties (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Changes in the accruals for warranties
 
 
 
 
Beginning balance
$ 13.8 
$ 12.0 
$ 13.5 
$ 13.2 
Warranty costs incurred
(1.1)
(1.6)
(5.0)
(4.3)
Warranty originations and revisions
2.6 
2.1 
7.8 
4.6 
Warranty expirations
(0.6)
(0.9)
(1.6)
(1.9)
Ending balance
$ 14.7 
$ 11.6 
$ 14.7 
$ 11.6 
Debt (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Components of debt
 
 
Less: unamortized discount
$ (90.7)1
$ (99.8)
Notes payable
1,646.9 1
1,616.0 
Total debt
2,978.1 1
2,974.9 
Carrying Value
 
 
Components of debt
 
 
Total debt
2,978.1 
2,974.9 
Recourse
 
 
Components of debt
 
 
Less: unamortized discount
(90.7)
(99.8)
Total debt
462.3 
457.7 
Recourse |
Carrying Value
 
 
Components of debt
 
 
Total debt
462.3 
457.7 
Non-Recourse
 
 
TRIP Holdings senior secured notes:
 
 
Less: owned by Trinity
(108.8)
(108.8)
Manufacturing/Corporate
 
 
Components of debt
 
 
Total debt
364.4 
354.4 
Manufacturing/Corporate |
Recourse
 
 
Components of debt
 
 
Less: unamortized discount
 
(99.8)
Total debt
364.4 
354.4 
Manufacturing/Corporate |
Recourse |
Carrying Value
 
 
Components of debt
 
 
Revolving credit facility
0 
0 
Convertible subordinated notes
450.0 
450.0 
Less: unamortized discount
(90.7)
(99.8)
Convertible subordinated notes, total
359.3 
350.2 
Other
5.1 
4.2 
Total debt
364.4 
354.4 
Manufacturing/Corporate |
Non-Recourse
 
 
TRIP Holdings senior secured notes:
 
 
Less: owned by Trinity
0 
0 
Railcar Leasing and Management Services Group |
Wholly-owned subsidiaries
 
 
Components of debt
 
 
Total debt
1,744.8 
1,719.3 
Railcar Leasing and Management Services Group |
TRIP Holdings
 
 
Components of debt
 
 
Total debt
868.9 
901.2 
Railcar Leasing and Management Services Group |
Recourse |
Wholly-owned subsidiaries
 
 
Components of debt
 
 
Less: unamortized discount
0 
0 
Total debt
97.9 
103.3 
Railcar Leasing and Management Services Group |
Recourse |
Wholly-owned subsidiaries |
Carrying Value
 
 
Components of debt
 
 
Total debt
97.9 
103.3 
Railcar Leasing and Management Services Group |
Recourse |
Wholly-owned subsidiaries |
Capital lease obligations |
Carrying Value
 
 
Components of debt
 
 
Capital lease obligations
46.5 
48.6 
Railcar Leasing and Management Services Group |
Recourse |
Wholly-owned subsidiaries |
Term loan |
Carrying Value
 
 
Components of debt
 
 
Loans payable
51.4 
54.7 
Railcar Leasing and Management Services Group |
Recourse |
TRIP Holdings
 
 
Components of debt
 
 
Less: unamortized discount
0 
0 
Total debt
0 
0 
Railcar Leasing and Management Services Group |
Non-Recourse |
Carrying Value
 
 
Components of debt
 
 
Total debt
2,515.8 
2,517.2 
Railcar Leasing and Management Services Group |
Non-Recourse |
TRIP Master Funding secured railcar equipment notes |
Carrying Value
 
 
Components of debt
 
 
Notes payable
807.7 
840.0 
Railcar Leasing and Management Services Group |
Non-Recourse |
Wholly-owned subsidiaries
 
 
TRIP Holdings senior secured notes:
 
 
Less: owned by Trinity
0 
0 
Railcar Leasing and Management Services Group |
Non-Recourse |
Wholly-owned subsidiaries |
2006 secured railcar equipment notes |
Carrying Value
 
 
Components of debt
 
 
Notes payable
259.1 
269.3 
Railcar Leasing and Management Services Group |
Non-Recourse |
Wholly-owned subsidiaries |
Promissory notes |
Carrying Value
 
 
Components of debt
 
 
Notes payable
445.5 
465.5 
Railcar Leasing and Management Services Group |
Non-Recourse |
Wholly-owned subsidiaries |
2009 secured railcar equipment notes |
Carrying Value
 
 
Components of debt
 
 
Notes payable
211.6 
218.4 
Railcar Leasing and Management Services Group |
Non-Recourse |
Wholly-owned subsidiaries |
2010 secured railcar equipment notes |
Carrying Value
 
 
Components of debt
 
 
Notes payable
345.0 
354.3 
Railcar Leasing and Management Services Group |
Non-Recourse |
Wholly-owned subsidiaries |
TILC warehouse facility |
Carrying Value
 
 
Components of debt
 
 
Loans payable
385.7 
308.5 
Railcar Leasing and Management Services Group |
Non-Recourse |
TRIP Holdings
 
 
TRIP Holdings senior secured notes:
 
 
Less: owned by Trinity
(108.8)
(108.8)
Railcar Leasing and Management Services Group |
Non-Recourse |
TRIP Holdings |
TRIP Holdings senior secured notes |
Carrying Value
 
 
TRIP Holdings senior secured notes:
 
 
Total outstanding
170.0 
170.0 
Less: owned by Trinity
(108.8)
(108.8)
TRIP Holdings senior secured notes
$ 61.2 
$ 61.2 
Debt (Details 1) (Convertible subordinated notes, USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Convertible subordinated notes
 
 
 
 
Total interest expenses recognized on the convertible subordinated notes
 
 
 
 
Coupon rate interest
$ 4.4 
$ 4.4 
$ 13.1 
$ 13.1 
Amortized debt discount
3.1 
2.9 
9.1 
8.4 
Total interest expenses recognized on the convertible subordinated notes
$ 7.5 
$ 7.3 
$ 22.2 
$ 21.5 
Debt (Details 2) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Remaining principal payments under existing debt agreements
 
Remaining three months of 2012
$ 44.1 
2013
250.1 
2014
426.8 
2015
108.8 
2016
465.1 
Thereafter
1,773.9 
Recourse |
Manufacturing/Corporate
 
Remaining principal payments under existing debt agreements
 
Remaining three months of 2012
0.3 
2013
1.7 
2014
2.4 
2015
0.2 
2016
0.2 
Thereafter
450.3 
Recourse |
Railcar Leasing and Management Services Group |
Capital lease obligations
 
Remaining principal payments under existing debt agreements
 
Remaining three months of 2012
0.7 
2013
2.9 
2014
3.1 
2015
3.3 
2016
3.5 
Thereafter
33.0 
Recourse |
Railcar Leasing and Management Services Group |
Term loan
 
Remaining principal payments under existing debt agreements
 
Remaining three months of 2012
0.7 
2013
3.0 
2014
3.2 
2015
3.4 
2016
41.1 
Thereafter
0 
Non-Recourse |
Railcar Leasing and Management Services Group |
2006 secured railcar equipment notes
 
Remaining principal payments under existing debt agreements
 
Remaining three months of 2012
3.3 
2013
15.1 
2014
16.9 
2015
18.6 
2016
21.9 
Thereafter
183.3 
Non-Recourse |
Railcar Leasing and Management Services Group |
Promissory notes
 
Remaining principal payments under existing debt agreements
 
Remaining three months of 2012
21.3 
2013
28.5 
2014
25.4 
2015
22.7 
2016
347.6 
Thereafter
0 
Non-Recourse |
Railcar Leasing and Management Services Group |
2009 secured railcar equipment notes
 
Remaining principal payments under existing debt agreements
 
Remaining three months of 2012
2.4 
2013
10.2 
2014
9.9 
2015
9.6 
2016
6.5 
Thereafter
173.0 
Non-Recourse |
Railcar Leasing and Management Services Group |
2010 secured railcar equipment notes
 
Remaining principal payments under existing debt agreements
 
Remaining three months of 2012
3.5 
2013
14.6 
2014
14.0 
2015
15.3 
2016
15.0 
Thereafter
282.6 
Non-Recourse |
Railcar Leasing and Management Services Group |
TILC warehouse facility
 
Remaining principal payments under existing debt agreements
 
Remaining three months of 2012
2.0 
2013
10.7 
2014
5.9 
2015
0 
2016
0 
Thereafter
0 
Non-Recourse |
Railcar Leasing and Management Services Group |
TRIP Holdings senior secured notes, total outstanding
 
Remaining principal payments under existing debt agreements
 
Remaining three months of 2012
0 
2013
0 
2014
170.0 
2015
0 
2016
0 
Thereafter
0 
Non-Recourse |
Railcar Leasing and Management Services Group |
TRIP Holdings senior secured notes - owned by Trinity
 
Remaining principal payments under existing debt agreements
 
Remaining three months of 2012
0 
2013
0 
2014
(108.8)
2015
0 
2016
0 
Thereafter
0 
Non-Recourse |
Railcar Leasing and Management Services Group |
TRIP Holdings senior secured notes
 
Remaining principal payments under existing debt agreements
 
2014
61.2 
Non-Recourse |
Railcar Leasing and Management Services Group |
TRIP Master Funding secured railcar equipment notes
 
Remaining principal payments under existing debt agreements
 
Remaining three months of 2012
9.9 
2013
41.0 
2014
40.1 
2015
35.7 
2016
29.3 
Thereafter
651.7 
Non-Recourse |
Railcar Leasing and Management Services Group |
Facility termination payments - TILC warehouse facility
 
Remaining principal payments under existing debt agreements
 
Remaining three months of 2012
0 
2013
122.4 
2014
244.7 
2015
0 
2016
0 
Thereafter
$ 0 
Debt (Details Textual) (USD $)
In Millions, except Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Dec. 31, 2011
Corporate Revolving Credit Facility
 
 
Debt (Textual) [Abstract]
 
 
Revolving credit facility
$ 425.0 
 
Maturity date of credit arrangements
October 20, 2016 
 
Used revolving credit facility for letters of credit
68.9 
 
Availability of the revolving credit facility
356.1 
 
Borrowing under revolving credit facility exclusive of letters of credit
0 
 
Letter of credit expiring in current year
0.5 
 
Credit facility, description of variable rate reference rate basis
Libor 
 
Percentage points added to LIBOR to compute Interest rates on the credit facility
1.50% 
 
Credit facility, description of variable rate reference rate basis, alternative computation
prime 
 
Percentage points added to prime to compute Interest rates on the credit facility, alternative computation
0.50% 
 
Convertible subordinated notes
 
 
Debt (Textual) [Abstract]
 
 
Interest rate on notes
3.875% 
 
Capital in excess of par value related to the convertible subordinated notes' conversion options
92.8 
92.8 
Date through which debt discount is being amortized
Jun. 01, 2018 
 
Effective annual interest rate yield based upon the estimated market interest rate
8.42% 
 
Conversion price of convertible subordinated notes (in dollars per share)
$ 51.19 
 
Number of shares issuable in exchange of Convertible Subordinated Notes
8,790,779 
 
Number of shares that would have been issued if the Convertible Subordinated Notes had been converted, in shares
0 
 
TILC warehouse facility
 
 
Debt (Textual) [Abstract]
 
 
Revolving credit facility
475.0 
 
Maturity date of credit arrangements
February 2013 
 
Availability of the revolving credit facility
89.3 
 
Interest at a defined index rate plus a margin for advances under the facility
2.25% 
 
Number of installments payable for amounts outstanding at maturity, absent renewal
3 
 
Installment payable date, installment one
August 2013 
 
Installment payable date, installment two
February 2014 
 
Installment payable date, installment three
August 2014 
 
TILC warehouse facility |
Non-Recourse |
Railcar Leasing and Management Services Group |
Wholly-owned subsidiaries |
Carrying Value
 
 
Debt (Textual) [Abstract]
 
 
Loans payable
$ 385.7 
$ 308.5 
Other, Net (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Other, net (income) expense
 
 
 
 
Foreign currency exchange transactions
$ (0.4)
$ 3.0 
$ (1.8)
$ 3.1 
Gain on equity investments
(0.2)
(0.1)
(0.3)
(0.6)
Other
(0.8)
2.4 
(2.3)
1.7 
Other, net
$ (1.4)
$ 5.3 
$ (4.4)
$ 4.2 
Income Taxes (Details)
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Reconciliation between the statutory United States Federal income tax rate and the Company's effective income tax rate
 
 
 
 
Statutory rate
35.00% 
35.00% 
35.00% 
35.00% 
State taxes
2.00% 
3.20% 
2.00% 
2.80% 
Tax settlements
0.00% 
0.00% 
(0.80%)
0.00% 
Changes in tax reserves
(1.60%)
(0.90%)
(0.60%)
0.30% 
Foreign tax adjustments
(1.00%)
2.10% 
(0.60%)
0.30% 
Other, net
(0.20%)
0.60% 
(0.10%)
1.20% 
Effective rate
34.20% 
40.00% 
34.90% 
39.60% 
Income Taxes (Details 1) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Change in unrecognized tax benefits
 
 
Beginning balance
$ 52.5 
$ 36.8 
Additions for tax positions related to the current year
3.1 
2.9 
Additions for tax positions of prior years
0 
15.1 
Reductions for tax positions of prior years
(1.1)
(0.1)
Settlements
(3.4)
(3.5)
Expiration of statute of limitations
(0.8)
(0.5)
Ending balance
$ 50.3 
$ 50.7 
Income Taxes (Details Textual) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Dec. 31, 2011
Income Tax Contingency [Line Items]
 
 
 
 
 
Tax benefit from final audit settlement with IRS
 
 
$ 3.5 
 
 
Tax benefit recognized on release of net state and local tax reserves
1.5 
 
1.8 
 
 
Additions for tax positions related to the current year
 
 
3.1 
2.9 
 
Additions for tax positions of prior years
 
 
0 
15.1 
 
Reductions for tax positions of prior years
 
 
1.1 
0.1 
 
Unrecognized tax benefits including interest and penalties that would affect the Company's effective tax rate if recognized
15.9 
18.8 
15.9 
18.8 
 
Total accrued interest and penalties
11.3 
 
11.3 
 
13.3 
Increase (decrease) in tax expenses due to uncertain tax position
(1.3)
(0.3)
(2.1)
1.5 
 
Lapse in Statute of Limitations
 
 
 
 
 
Income Tax Contingency [Line Items]
 
 
 
 
 
Reasonably possible change to unrecognized tax benefits within twelve months
7.8 
 
7.8 
 
 
Anticipated Settlement With Taxing Authorities
 
 
 
 
 
Income Tax Contingency [Line Items]
 
 
 
 
 
Reasonably possible change to unrecognized tax benefits within twelve months
$ 26.5 
 
$ 26.5 
 
 
Swiss subsidiary
 
 
 
 
 
Income Tax Contingency [Line Items]
 
 
 
 
 
Number of subsidiaries
 
 
2 
 
 
General period of statute of limitations in Switzerland
 
 
5 years 
 
 
Extended period of statute of limitations in Switzerland
 
 
15 years 
 
 
Employee Retirement Plans (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Components of net retirement cost
 
 
 
 
Service cost
$ 0.2 
$ 0.2 
$ 0.6 
$ 0.7 
Interest
4.9 
4.9 
14.6 
14.7 
Expected return on plan assets
(5.7)
(5.7)
(17.1)
(17.1)
Actuarial loss
0.7 
0.4 
2.5 
1.4 
Prior service cost
0.1 
0.1 
0.1 
0.1 
Defined benefit expense
0.2 
(0.1)
0.7 
(0.2)
Profit sharing
3.1 
1.9 
8.9 
6.4 
Net expense
$ 3.3 
$ 1.8 
$ 9.6 
$ 6.2 
Employee Retirement Plans (Details Textual) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Employee Retirement Plans (Textual) [Abstract]
 
 
 
 
Actual contribution by the employer
$ 3.6 
$ 2.9 
$ 13.8 
$ 11.7 
Expected full year total contribution by the employer
$ 17.3 
 
$ 17.3 
 
Accumulated Other Comprehensive Loss (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Components of accumulated other comprehensive loss
 
Currency translation adjustments, Beginning Balance
$ (17.1)
Currency translation adjustments, other comprehensive income
0.6 
Currency translation adjustments, Ending Balance, net of tax expense of $0.2
(16.5)
Unrealized loss on derivative financial instruments, Beginning Balance
(46.2)
Unrealized loss on derivative financial instruments, other comprehensive income
6.3 
Unrealized loss on derivative financial instruments, Ending Balance, net of tax benefit of $30.6
(39.9)
Funded status of pension liability, Beginning Balance
(70.7)
Funded status of pension liability, other comprehensive income,
1.6 
Funded status of pension liability, Ending Balance, net of tax benefit of $40.7
(69.1)
Accumulated Other Comprehensive Loss, Beginning Balance
(134.0)
Accumulated Other Comprehensive Loss, Other comprehensive income
8.5 
Accumulated Other Comprehensive Loss, Ending Balance, net of tax benefit of $71.1
(125.5)1
Accumulated Other Comprehensive Loss (Textual) [Abstract]
 
Currency translation adjustments, Tax expense
0.2 
Unrealized loss on derivative financial instruments, Tax benefit
(30.6)
Funded status of pension liability, Tax benefit
(40.7)
Accumulated other comprehensive loss, Tax benefit
$ (71.1)
Stock-Based Compensation (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Stock-Based Compensation (Textual) [Abstract]
 
 
 
 
Stock-based compensation expense
$ 7.9 
$ 6.9 
$ 20.4 
$ 16.3 
Earnings Per Common Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Computation of basic and diluted net income attributable to Trinity Industries, Inc
 
 
 
 
Net income attributable to Trinity Industries, Inc.
$ 63.2 
$ 31.9 
$ 183.9 
$ 86.1 
Unvested restricted share participation
(2.1)
(1.0)
(6.1)
(2.9)
Net income attributable to Trinity Industries, Inc. - basic
61.1 
30.9 
177.8 
83.2 
Net income attributable to Trinity Industries, Inc. - basic, Average Shares
76.5 
77.7 
77.3 
77.4 
Net income attributable to Trinity Industries, Inc. - basic, EPS
$ 0.80 
$ 0.40 
$ 2.30 
$ 1.07 
Effect of dilutive securities:
 
 
 
 
Stock options, Income (Loss)
0 
0 
0 
0 
Stock options, Average Shares
0.2 
0.2 
0.2 
0.3 
Net income attributable to Trinity Industries, Inc - diluted
$ 61.1 
$ 30.9 
$ 177.8 
$ 83.2 
Net income attributable to Trinity Industries, Inc. - diluted, Average Shares
76.7 
77.9 
77.5 
77.7 
Net income attributable to Trinity Industries, Inc. - diluted, EPS
$ 0.80 
$ 0.40 
$ 2.29 
$ 1.07 
Net Income Per Common Share (Textual) [Abstract]
 
 
 
 
Total weighted average restricted shares and antidilutive stock options, number of shares
3.3 
2.9 
3.2 
2.9 
Contingencies (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Railcar
Contingencies (Textual) [Abstract]
 
 
Number of tank cars voluntarily recertified by Company
 
948 
Inspection cycle for tank cars in service minimum
3 years 
 
Inspection cycle for tank cars in service maximum
5 years 
 
Minimum possible loss
$ 4.0 
 
Maximum possible loss
19.8 
 
Total Accruals
10.1 
 
Reserve for probable and estimable environmental and workplace liabilities
$ 7.4