Property, Plant, and Equipment

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

The following table summarizes the components of property, plant, and equipment as of December 31, 2012 and 2011.



	December 31, 2012			December 31, 2011
	(in millions)
Manufacturing/Corporate:
Land	$	37.7		$	34.7
Buildings and improvements	431.0			407.9
Machinery and other	745.3			716.4
Construction in progress	46.1			12.7
	1,260.1			1,171.7
Less accumulated depreciation	(720.8		)	(682.1		)
	539.3			489.6
Leasing:
Wholly-owned subsidiaries:
Machinery and other	9.6			9.6
Equipment on lease	3,662.6			3,429.3
	3,672.2			3,438.9
Less accumulated depreciation	(468.4		)	(372.9		)
	3,203.8			3,066.0
TRIP Holdings:
Equipment on lease	1,272.4			1,257.7
Less accumulated depreciation	(153.8		)	(122.7		)
	1,118.6			1,135.0
Net deferred profit on railcars sold to the Leasing Group
Sold to wholly-owned subsidiaries	(381.8		)	(344.5		)
Sold to TRIP Holdings	(180.9		)	(187.0		)
	$	4,299.0		$	4,159.1

Amounts previously reported have been adjusted to exclude discontinued operations resulting from the expected sale of the Company's remaining ready-mix concrete operations. See Note 2 Acquisitions and Divestitures.

We lease certain equipment and facilities under operating leases. Future minimum rent expense on non-Leasing Group leases in each year is (in millions): 2013 - $3.9; 2014 - $2.7; 2015 - $2.0; 2016 - $1.3; 2017 - $0.7; and $1.2 thereafter. See Note 5 Railcar Leasing and Management Services Group for information related to the lease agreements, future operating lease obligations, and future minimum rent expense associated with the Leasing Group.

We did not capitalize any interest expense as part of the construction of facilities and equipment during 2012 or 2011.

In May 2011 and May 2010, the Company's inland barge manufacturing facilities in Missouri and Tennessee, respectively, experienced floods resulting in significant damages to Trinity's property and temporary disruption of its production activities. The Company is insured against losses due to property damage and business interruption subject to certain deductibles. With respect to the Missouri flood, Trinity received $35.0 million in payments from its insurance carriers of which $22.7 million pertained to the replacement of or repairs to damaged property, plant, and equipment with a net book value of $5.7 million, with the remainder pertaining primarily to the reimbursement of flood-related expenses and lost production. Accordingly, the Company recognized a gain of $0.4 million in 2012 and $17.0 million in 2011 from the disposition of the Missouri flood-damaged property, plant, and equipment. With respect to the Tennessee flood, Trinity received $27.5 million in payments from its insurance carrier of which $12.6 million pertained to the replacement of or repairs to damaged property, plant, and equipment with a net book value of $2.3 million, with the remainder pertaining primarily to the reimbursement of flood-related expenses. Accordingly, the Company recognized a gain of $9.7 million in 2010 and $0.6 million in 2011 from the disposition of the Tennessee flood-damaged property, plant, and equipment.

We estimate the fair market value of properties no longer in use or held for sale based on the location and condition of the properties, the fair market value of similar properties in the area, and the Company's experience selling similar properties in the past. As of December 31, 2012, the Company had non-operating plants with a net book value of $7.4 million. Our estimated fair value of these assets exceeds their book value.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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