x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 75-0225040 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
2525 Stemmons Freeway Dallas, Texas | 75207-2401 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | x | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Caption | Page |
CERTIFICATIONS |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Revenues: | ||||||||||||||||
Manufacturing | $ | 778.2 | $ | 643.7 | $ | 2,397.5 | $ | 1,738.2 | ||||||||
Leasing | 159.3 | 147.4 | 493.7 | 395.4 | ||||||||||||
937.5 | 791.1 | 2,891.2 | 2,133.6 | |||||||||||||
Operating costs: | ||||||||||||||||
Cost of revenues: | ||||||||||||||||
Manufacturing | 658.2 | 548.4 | 2,025.1 | 1,478.3 | ||||||||||||
Leasing | 84.3 | 78.6 | 269.8 | 202.4 | ||||||||||||
Other | 13.1 | 7.1 | 38.6 | 22.6 | ||||||||||||
755.6 | 634.1 | 2,333.5 | 1,703.3 | |||||||||||||
Selling, engineering, and administrative expenses: | ||||||||||||||||
Manufacturing | 38.6 | 35.8 | 114.2 | 103.2 | ||||||||||||
Leasing | 7.5 | 6.2 | 20.9 | 17.5 | ||||||||||||
Other | 12.4 | 11.5 | 33.3 | 30.6 | ||||||||||||
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 | ||||||||||
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 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(in millions) | ||||||||||||||||
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 | 0.0 | 1.1 | (0.1 | ) | |||||||||||
Funded status of pension liability – amortization of actuarial loss | 0.8 | — | 2.5 | — | ||||||||||||
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 | ) | 0.0 | 2.4 | |||||||||||
Comprehensive income attributable to Trinity Industries, Inc. | $ | 66.1 | $ | 26.7 | $ | 192.4 | $ | 82.8 |
September 30, 2012 | December 31, 2011 | |||||||
(unaudited) | ||||||||
(in millions) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 312.2 | $ | 351.1 | ||||
Receivables, net of allowance | 423.5 | 384.3 | ||||||
Income tax receivable | 5.1 | 1.6 | ||||||
Inventories: | ||||||||
Raw materials and supplies | 400.3 | 324.8 | ||||||
Work in process | 180.5 | 125.6 | ||||||
Finished goods | 110.9 | 99.5 | ||||||
691.7 | 549.9 | |||||||
Restricted cash, including TRIP Holdings of $59.0 and $74.6 | 234.8 | 240.3 | ||||||
Property, plant, and equipment, at cost, including TRIP Holdings of $1,272.3 and $1,257.7 | 5,636.5 | 5,407.9 | ||||||
Less accumulated depreciation, including TRIP Holdings of $145.2 and $122.7 | (1,352.8 | ) | (1,228.4 | ) | ||||
4,283.7 | 4,179.5 | |||||||
Goodwill | 229.8 | 225.9 | ||||||
Other assets | 238.3 | 188.4 | ||||||
$ | 6,419.1 | $ | 6,121.0 | |||||
Liabilities and Stockholders’ Equity | ||||||||
Accounts payable | $ | 212.6 | $ | 207.4 | ||||
Accrued liabilities | 478.1 | 421.3 | ||||||
Debt: | ||||||||
Recourse, net of unamortized discount of $90.7 and $99.8 | 462.3 | 457.7 | ||||||
Non-recourse: | ||||||||
Parent and wholly-owned subsidiaries | 1,646.9 | 1,616.0 | ||||||
TRIP Holdings | 868.9 | 901.2 | ||||||
2,978.1 | 2,974.9 | |||||||
Deferred income | 37.0 | 38.7 | ||||||
Deferred income taxes | 543.0 | 434.7 | ||||||
Other liabilities | 83.3 | 95.7 | ||||||
4,332.1 | 4,172.7 | |||||||
Stockholders’ equity: | ||||||||
Preferred stock – 1.5 shares authorized and unissued | — | — | ||||||
Common stock – 200.0 shares authorized | 81.7 | 81.7 | ||||||
Capital in excess of par value | 643.2 | 626.5 | ||||||
Retained earnings | 1,474.0 | 1,314.7 | ||||||
Accumulated other comprehensive loss | (125.5 | ) | (134.0 | ) | ||||
Treasury stock | (70.9 | ) | (25.1 | ) | ||||
2,002.5 | 1,863.8 | |||||||
Noncontrolling interest | 84.5 | 84.5 | ||||||
2,087.0 | 1,948.3 | |||||||
$ | 6,419.1 | $ | 6,121.0 |
Nine Months Ended September 30, | ||||||||
2012 | 2011 | |||||||
(in millions) | ||||||||
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 | — | 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 | — | ||||||
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 | — | (21.1 | ) | |||||
(Increase) decrease in restricted cash | 5.5 | (22.3 | ) | |||||
Shares repurchased | (45.2 | ) | — | |||||
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 | $ | 272.8 |
Common Stock | Treasury Stock | |||||||||||||||||||||||||||||||||||||
Shares | Amount | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Shares | Amount | Trinity Stockholders’ Equity | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2011 | 81.7 | $ | 81.7 | $ | 626.5 | $ | 1,314.7 | $ | (134.0 | ) | (1.5 | ) | $ | (25.1 | ) | $ | 1,863.8 | $ | 84.5 | $ | 1,948.3 | |||||||||||||||||
Net income | — | — | — | 183.9 | — | — | — | 183.9 | (1.0 | ) | 182.9 | |||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 8.5 | — | — | 8.5 | 1.0 | 9.5 | ||||||||||||||||||||||||||||
Cash dividends on common stock | — | — | — | (24.6 | ) | — | — | — | (24.6 | ) | — | (24.6 | ) | |||||||||||||||||||||||||
Restricted shares issued, net | — | — | 18.5 | — | — | 0.4 | (1.5 | ) | 17.0 | — | 17.0 | |||||||||||||||||||||||||||
Shares repurchased | — | — | — | — | — | (1.8 | ) | (45.2 | ) | (45.2 | ) | — | (45.2 | ) | ||||||||||||||||||||||||
Stock options exercised | — | — | 0.6 | — | — | 0.2 | 1.5 | 2.1 | — | 2.1 | ||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | (2.4 | ) | — | — | — | — | (2.4 | ) | — | (2.4 | ) | |||||||||||||||||||||||||
Other | — | — | — | — | — | (0.1 | ) | (0.6 | ) | (0.6 | ) | — | (0.6 | ) | ||||||||||||||||||||||||
Balances at September 30, 2012 | 81.7 | $ | 81.7 | $ | 643.2 | $ | 1,474.0 | $ | (125.5 | ) | (2.8 | ) | $ | (70.9 | ) | $ | 2,002.5 | $ | 84.5 | $ | 2,087.0 |
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 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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
(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. |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 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 |
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 |
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 | % |
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 |
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 |
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 | ) |
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 |
September 30, 2012 | September 30, 2011 | |||||||
(in millions) | ||||||||
Rail Group | ||||||||
External Customers | $ | 2,526.6 | $ | 1,939.0 | ||||
Leasing Group | 815.4 | 431.7 | ||||||
$ | 3,342.0 | $ | 2,370.7 | |||||
Inland Barge | $ | 536.5 | $ | 564.4 | ||||
Structural wind towers | $ | 754.3 | $ | 929.5 |
Three Months Ended September 30, 2012 | Three Months Ended September 30, 2011 | ||||||||||||||||||||||||||
Revenues | Revenues | Percent Change | |||||||||||||||||||||||||
External | Intersegment | Total | External | Intersegment | Total | ||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||
Rail Group | $ | 328.3 | $ | 129.6 | $ | 457.9 | $ | 227.7 | $ | 93.2 | $ | 320.9 | 42.7 | % | |||||||||||||
Construction Products Group | 148.2 | 6.1 | 154.3 | 161.1 | 3.7 | 164.8 | (6.4 | ) | |||||||||||||||||||
Inland Barge Group | 166.5 | — | 166.5 | 143.2 | — | 143.2 | 16.3 | ||||||||||||||||||||
Energy Equipment Group | 131.0 | 4.6 | 135.6 | 107.3 | 4.3 | 111.6 | 21.5 | ||||||||||||||||||||
Railcar Leasing and Management Services Group | 159.3 | 0.6 | 159.9 | 147.4 | — | 147.4 | 8.5 | ||||||||||||||||||||
All Other | 4.2 | 20.4 | 24.6 | 4.4 | 13.6 | 18.0 | 36.7 | ||||||||||||||||||||
Eliminations – Lease subsidiary | — | (125.9 | ) | (125.9 | ) | — | (87.9 | ) | (87.9 | ) | |||||||||||||||||
Eliminations – Other | — | (35.4 | ) | (35.4 | ) | — | (26.9 | ) | (26.9 | ) | |||||||||||||||||
Consolidated Total | $ | 937.5 | $ | — | $ | 937.5 | $ | 791.1 | $ | — | $ | 791.1 | 18.5 |
Nine Months Ended September 30, 2012 | Nine Months Ended September 30, 2011 | ||||||||||||||||||||||||||
Revenues | Revenues | Percent Change | |||||||||||||||||||||||||
External | Intersegment | Total | External | Intersegment | Total | ||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||
Rail Group | $ | 1,049.7 | $ | 392.2 | $ | 1,441.9 | $ | 556.0 | $ | 265.4 | $ | 821.4 | 75.5 | % | |||||||||||||
Construction Products Group | 449.4 | 16.7 | 466.1 | 439.2 | 8.5 | 447.7 | 4.1 | ||||||||||||||||||||
Inland Barge Group | 509.8 | — | 509.8 | 398.9 | — | 398.9 | 27.8 | ||||||||||||||||||||
Energy Equipment Group | 377.7 | 13.6 | 391.3 | 335.6 | 12.2 | 347.8 | 12.5 | ||||||||||||||||||||
Railcar Leasing and Management Services Group | 493.7 | 2.7 | 496.4 | 395.4 | — | 395.4 | 25.5 | ||||||||||||||||||||
All Other | 10.9 | 50.2 | 61.1 | 8.5 | 36.9 | 45.4 | 34.6 | ||||||||||||||||||||
Eliminations – Lease subsidiary | — | (380.8 | ) | (380.8 | ) | — | (252.8 | ) | (252.8 | ) | |||||||||||||||||
Eliminations – Other | — | (94.6 | ) | (94.6 | ) | — | (70.2 | ) | (70.2 | ) | |||||||||||||||||
Consolidated Total | $ | 2,891.2 | $ | — | $ | 2,891.2 | $ | 2,133.6 | $ | — | $ | 2,133.6 | 35.5 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(in millions) | ||||||||||||||||
Rail Group | $ | 35.2 | $ | 18.2 | $ | 128.3 | $ | 42.9 | ||||||||
Construction Products Group | 12.7 | 17.8 | 38.7 | 42.2 | ||||||||||||
Inland Barge Group | 26.9 | 26.0 | 93.5 | 66.8 | ||||||||||||
Energy Equipment Group | 9.5 | (1.9 | ) | 9.7 | 9.8 | |||||||||||
Railcar Leasing and Management Services Group | 85.1 | 64.2 | 228.0 | 178.6 | ||||||||||||
All Other | (2.0 | ) | (0.3 | ) | (7.1 | ) | (0.8 | ) | ||||||||
Corporate | (12.4 | ) | (11.5 | ) | (33.6 | ) | (30.6 | ) | ||||||||
Eliminations – lease subsidiary | (14.1 | ) | (8.1 | ) | (37.2 | ) | (23.3 | ) | ||||||||
Eliminations – other | 1.0 | 1.0 | (1.1 | ) | 0.7 | |||||||||||
Consolidated Total | $ | 141.9 | $ | 105.4 | $ | 419.2 | $ | 286.3 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(in millions) | ||||||||||||||||
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 | ||||||||||
Consolidated Total | $ | 46.0 | $ | 52.7 | $ | 138.1 | $ | 139.2 |
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 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | |||||||||||||||||
($ in millions) | ($ in millions) | |||||||||||||||||||||
Revenues: | ||||||||||||||||||||||
Rail | $ | 416.8 | $ | 278.1 | 49.9 | % | $ | 1,317.1 | $ | 690.7 | 90.7 | % | ||||||||||
Components | 41.1 | 42.8 | (4.0 | ) | 124.8 | 130.7 | (4.5 | ) | ||||||||||||||
Total revenues | $ | 457.9 | $ | 320.9 | 42.7 | $ | 1,441.9 | $ | 821.4 | 75.5 | ||||||||||||
Operating profit | $ | 35.2 | $ | 18.2 | $ | 128.3 | $ | 42.9 | ||||||||||||||
Operating profit margin | 7.7 | % | 5.7 | % | 8.9 | % | 5.2 | % |
As of September 30, | ||||||||
2012 | 2011 | |||||||
(in millions) | ||||||||
External Customers | $ | 2,526.6 | $ | 1,939.0 | ||||
Leasing Group | 815.4 | 431.7 | ||||||
Total | $ | 3,342.0 | $ | 2,370.7 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
Beginning balance | 30,610 | 27,240 | 29,000 | 5,960 | ||||||||
Orders received | 4,865 | 4,250 | 16,730 | 30,885 | ||||||||
Shipments | (4,145 | ) | (3,605 | ) | (14,400 | ) | (8,960 | ) | ||||
Ending balance | 31,330 | 27,885 | 31,330 | 27,885 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | |||||||||||||||||
($ in millions) | ($ in millions) | |||||||||||||||||||||
Revenues: | ||||||||||||||||||||||
Concrete and Aggregates | $ | 48.9 | $ | 47.9 | 2.1 | % | $ | 140.0 | $ | 143.5 | (2.4 | )% | ||||||||||
Highway Products | 95.8 | 107.2 | (10.6 | ) | 295.2 | 284.4 | 3.8 | |||||||||||||||
Other | 9.6 | 9.7 | * | 30.9 | 19.8 | * | ||||||||||||||||
Total revenues | $ | 154.3 | $ | 164.8 | (6.4 | ) | $ | 466.1 | $ | 447.7 | 4.1 | |||||||||||
Operating profit | $ | 12.7 | $ | 17.8 | $ | 38.7 | $ | 42.2 | ||||||||||||||
Operating profit margin | 8.2 | % | 10.8 | % | 8.3 | % | 9.4 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | |||||||||||||||||
($ in millions) | ($ in millions) | |||||||||||||||||||||
Revenues | $ | 166.5 | $ | 143.2 | 16.3 | % | $ | 509.8 | $ | 398.9 | 27.8 | % | ||||||||||
Operating profit | $ | 26.9 | $ | 26.0 | $ | 93.5 | $ | 66.8 | ||||||||||||||
Operating profit margin | 16.2 | % | 18.2 | % | 18.3 | % | 16.7 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2012 | 2011 | Percent | 2012 | 2011 | Percent | |||||||||||||||||
($ in millions) | Change | ($ in millions) | Change | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||
Structural wind towers | $ | 70.8 | $ | 52.7 | 34.3 | % | $ | 189.5 | $ | 188.5 | 0.5 | % | ||||||||||
Other | 64.8 | 58.9 | 10.0 | 201.8 | 159.3 | 26.7 | ||||||||||||||||
Total revenues | $ | 135.6 | $ | 111.6 | 21.5 | $ | 391.3 | $ | 347.8 | 12.5 | ||||||||||||
Operating profit (loss) | $ | 9.5 | $ | (1.9 | ) | $ | 9.7 | $ | 9.8 | |||||||||||||
Operating profit (loss) margin | 7.0 | % | (1.7 | )% | 2.5 | % | 2.8 | % |
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 | |||||||||||||||||
Fleet utilization: | |||||||||||||||||||||
Wholly-owned subsidiaries | 99.0 | % | 99.4 | % | 99.0 | % | 99.4 | % | |||||||||||||
TRIP Holdings | 99.3 | % | 99.9 | % | 99.3 | % | 99.9 | % | |||||||||||||
Total fleet | 99.0 | % | 99.6 | % | 99.0 | % | 99.6 | % |
No. of cars | Average age | Average remaining lease term | |||||||
Wholly-owned subsidiaries | 56,800 | 7.0 | 3.4 | ||||||
TRIP Holdings | 14,455 | 5.0 | 3.1 | ||||||
Total fleet | 71,255 | 6.6 | 3.3 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | |||||||||||||||||
($ in millions) | ($ in millions) | |||||||||||||||||||||
Revenues | $ | 24.6 | $ | 18.0 | 36.7 | % | $ | 61.1 | $ | 45.4 | 34.6 | % | ||||||||||
Operating loss | $ | (2.0 | ) | $ | (0.3 | ) | $ | (7.1 | ) | $ | (0.8 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | |||||||||||||||||
($ in millions) | ($ in millions) | |||||||||||||||||||||
Operating costs | $ | (12.4 | ) | $ | (11.5 | ) | 7.8 | % | $ | (33.6 | ) | $ | (30.6 | ) | 9.8 | % |
Nine Months Ended September 30, | ||||||||
2012 | 2011 | |||||||
(in millions) | ||||||||
Total cash provided by (required by) | ||||||||
Operating activities | $ | 252.1 | $ | 56.1 | ||||
Investing activities | (217.6 | ) | (125.6 | ) | ||||
Financing activities | (73.4 | ) | (11.7 | ) | ||||
Net decrease in cash and cash equivalents | $ | (38.9 | ) | $ | (81.2 | ) |
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 |
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 |
• | market conditions and demand for our business products and services; |
• | the cyclical nature of industries in which we compete; |
• | variations in weather in areas where our construction products are sold, used, or installed; |
• | naturally-occurring events and disasters causing disruption to our manufacturing, product deliveries, and production capacity, thereby giving rise to an increase in expenses, loss of revenue, and property losses; |
• | the timing of introduction of new products; |
• | the timing and delivery of customer orders or a breach of customer contracts; |
• | the credit worthiness of customers and their access to capital; |
• | product price changes; |
• | changes in mix of products sold; |
• | the extent of utilization of manufacturing capacity; |
• | availability and costs of steel, component parts, supplies, and other raw materials; |
• | competition and other competitive factors; |
• | changing technologies; |
• | surcharges and other fees added to fixed pricing agreements for steel, component parts, supplies and other raw materials; |
• | interest rates and capital costs; |
• | counter-party risks for financial instruments; |
• | long-term funding of our operations; |
• | taxes; |
• | the stability of the governments and political and business conditions in certain foreign countries, particularly Mexico; |
• | changes in import and export quotas and regulations; |
• | business conditions in emerging economies; |
• | costs and results of litigation; and |
• | legal, regulatory, and environmental issues. |
Period | Number of Shares Purchased(1) | Average Price Paid per Share (1) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (2) | ||||||||||
July 1, 2012 through July 31, 2012 | 107,422 | $ | 28.01 | 107,422 | $ | 155,888,403 | ||||||||
August 1, 2012 through August 31, 2012 | 34,570 | $ | 28.85 | 34,570 | $ | 154,891,041 | ||||||||
September 1, 2012 through September 30, 2012 | 10,959 | $ | 32.82 | — | $ | 154,891,041 | ||||||||
Total | 152,951 | $ | 28.54 | 141,992 | $ | 154,891,041 |
Exhibit Number | Description | |
31.1 | Rule 13a-15(e) and 15d-15(e) Certification of Chief Executive Officer (filed herewith). | |
31.2 | Rule 13a-15(e) and 15d-15(e) Certification of Chief Financial Officer (filed herewith). | |
32.1 | Certification pursuant to 18 U.S.C., Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). | |
32.2 | Certification pursuant to 18 U.S.C., Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). | |
95 | Mine Safety Disclosure Exhibit (filed herewith). | |
101.INS | XBRL Instance Document (filed electronically herewith) | |
101.SCH | XBRL Taxonomy Extension Schema Document (filed electronically herewith) | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document (filed electronically herewith) | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document (filed electronically herewith) | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document (filed electronically herewith) | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document (filed electronically herewith) |
TRINITY INDUSTRIES, INC. | By /s/ JAMES E. PERRY | |
Registrant | ||
James E. Perry | ||
Senior Vice President and | ||
Chief Financial Officer | ||
October 25, 2012 |
Exhibit Number | Description | |
31.1 | Rule 13a-15(e) and 15d-15(e) Certification of Chief Executive Officer (filed herewith). | |
31.2 | Rule 13a-15(e) and 15d-15(e) Certification of Chief Financial Officer (filed herewith). | |
32.1 | Certification pursuant to 18 U.S.C., Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). | |
32.2 | Certification pursuant to 18 U.S.C., Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). | |
95 | Mine Safety Disclosure Exhibit (filed herewith). | |
101.INS | XBRL Instance Document (filed electronically herewith) | |
101.SCH | XBRL Taxonomy Extension Schema Document (filed electronically herewith) | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document (filed electronically herewith) | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document (filed electronically herewith) | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document (filed electronically herewith) | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document (filed electronically herewith) |
1. | I have reviewed this quarterly report on Form 10-Q of Trinity Industries, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
1. | I have reviewed this quarterly report on Form 10-Q of Trinity Industries, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company, as of, and for, the periods presented in the Report. |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company, as of, and for, the periods presented in the Report. |
Mine or Operating Name/MSHA Identification Number | Section 104 S&S Citations (#) | Section 104(b) Orders (#) | Section 104(d) Citations and Orders (#) | Section 110(b)(2) Violations (#) | Section 107(a) Orders (#) | Total Dollar Value of MSHA Assessments Proposed ($) | Total Number of Mining Related Fatalities (#) | Received Notice of Pattern of Violation Under Section 104(e) (yes/no) | Received Notice of Potential to Have Pattern under Section 104(e) (yes/no) | Legal Actions Pending as of Last Day of Period (#) | Legal Actions Initiated During Period (#) | Legal Actions Resolved During Period (#) | |||||||||||||||||||||||||||||||||||||
Rye (4102547) | — | — | — | — | — | $ | — | — | No | No | — | — | — | ||||||||||||||||||||||||||||||||||||
Belton (4101043) | — | — | — | — | — | $ | — | — | No | No | — | — | — | ||||||||||||||||||||||||||||||||||||
Malloy Bridge (4102946) | — | — | — | — | — | $ | — | — | No | No | — | — | — | ||||||||||||||||||||||||||||||||||||
Cottonwood (4104553) | — | — | — | — | — | $ | — | — | No | No | — | — | — | ||||||||||||||||||||||||||||||||||||
Wills Point (4104113) | — | — | — | — | — | $ | — | — | No | No | — | — | — | ||||||||||||||||||||||||||||||||||||
Waco-Angerman (4103492) | — | — | — | — | — | $ | — | — | No | No | — | — | — | ||||||||||||||||||||||||||||||||||||
Indian Village (1600348) | — | — | — | — | — | $ | — | — | No | No | — | — | — | ||||||||||||||||||||||||||||||||||||
Lockesburg (0301681) | — | — | — | — | — | $ | — | — | No | No | — | — | — | ||||||||||||||||||||||||||||||||||||
Kopperl (4104450) | — | — | — | — | — | $ | — | — | No | No | — | — | — | ||||||||||||||||||||||||||||||||||||
Wills Point II (4104071) | — | — | — | — | — | $ | — | — | No | No | — | — | — | ||||||||||||||||||||||||||||||||||||
Asa (4104399) | — | — | — | — | — | $ | — | — | No | No | — | — | — | ||||||||||||||||||||||||||||||||||||
Paradise (4103253) | — | — | — | — | — | $ | — | — | No | No | — | — | — | ||||||||||||||||||||||||||||||||||||
Anacoco (1600543) | — | — | — | — | — | $ | 200 | (1) | — | No | No | — | — | — |
(1) | Two non-significant & substantial citations issued. |
Employee Retirement Plans (Tables)
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of net retirement cost | The following table summarizes the components of net retirement cost for the Company:
|
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 |
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 |
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 |
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 |
Property, Plant, and Equipment (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of property, plant, and equipment | The following table summarizes the components of property, plant, and equipment as of September 30, 2012 and December 31, 2011.
|
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) | |||
|
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] | ||||
|
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 |
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 |
Contingencies
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Commitments and Contingencies Disclosure [Abstract] | |
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. |
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 |
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 |
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 |
Other, Net (Tables)
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net (income) expense | Other, net (income) expense consists of the following items:
|
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 |
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 |
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 | |||
|
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 |
Acquisitions and Divestitures
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
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 |