Financial Statements for Guarantors of the Senior Notes

The Company’s Senior Notes are fully and unconditionally and jointly and severally guaranteed by certain of Trinity’s 100%-owned subsidiaries: Trinity Industries Leasing Company; Trinity Marine Products, Inc.; Trinity North American Freight Car, Inc.; Trinity Rail Group, LLC; Trinity Tank Car, Inc.; Trinity Meyer Utility Structures, LLC; and Trinity Structural Towers, Inc. (collectively, the "Combined Guarantor Subsidiaries”). The Senior Notes indenture agreement includes customary provisions for the release of the guarantees by the Combined Guarantor Subsidiaries upon the occurrence of certain allowed events including the release of one or more of the Combined Guarantor Subsidiaries as guarantor under the Company's revolving credit facility. See Note 11 Debt. The Senior Notes are not guaranteed by any remaining 100%-owned subsidiaries of the Company or partially-owned subsidiaries (“Combined Non-Guarantor Subsidiaries”).

As of March 31, 2018, assets held by the Combined Non-Guarantor Subsidiaries included $134.1 million of restricted cash that was not available for distribution to Trinity Industries, Inc. (“Parent”), $3,549.2 million of equipment securing certain non-recourse debt, $66.3 million of equipment securing certain lease obligations held by the Combined Non-Guarantor Subsidiaries, and $305.4 million of assets located in foreign locations. As of December 31, 2017, assets held by the Combined Non-Guarantor Subsidiaries included $143.0 million of restricted cash that was not available for distribution to the Parent, $3,509.1 million of equipment securing certain non-recourse debt, $66.2 million of equipment securing certain lease obligations held by the Combined Non-Guarantor Subsidiaries, and $317.3 million of assets located in foreign locations.



Statement of Operations and Comprehensive Income
Three Months Ended March 31, 2018
	Parent			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	483.1	$	511.1	$	(162.9	)	$	831.3
Cost of revenues	0.2			396.9		401.4		(168.4		)	630.1
Selling, engineering, and administrative expenses	37.8			32.5		34.6		—			104.9
Gains/(losses) on dispositions of property	0.1			1.9		0.3		—			2.3
	37.9			427.5		435.7		(168.4		)	732.7
Operating profit (loss)	(37.9		)	55.6		75.4		5.5			98.6
Other (income) expense	2.4			8.1		31.7		—			42.2
Equity in earnings of subsidiaries, net of taxes	84.4			25.2		—		(109.6		)	—
Income before income taxes	44.1			72.7		43.7		(104.1		)	56.4
Provision (benefit) for income taxes	3.9			10.3		5.2		(4.6		)	14.8
Net income	40.2			62.4		38.5		(99.5		)	41.6
Net income attributable to noncontrolling interest	—			—		—		1.4			1.4
Net income attributable to controlling interest	$	40.2		$	62.4	$	38.5	$	(100.9	)	$	40.2

Net income	$	40.2		$	62.4	$	38.5	$	(99.5	)	$	41.6
Other comprehensive income (loss)	0.1			—		1.8		—			1.9
Comprehensive income	40.3			62.4		40.3		(99.5		)	43.5
Comprehensive income attributable to noncontrolling interest	—			—		—		1.8			1.8
Comprehensive income attributable to controlling interest	$	40.3		$	62.4	$	40.3	$	(101.3	)	$	41.7



Statement of Operations and Comprehensive Income
Three Months Ended March 31, 2017
	Parent			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	550.6	$	464.0	$	(137.3	)	$	877.3
Cost of revenues	2.4			442.2		356.9		(141.3		)	660.2
Selling, engineering, and administrative expenses	32.8			30.8		38.9		—			102.5
Gains/(losses) on dispositions of property	0.5			0.1		0.7		—			1.3
	34.7			472.9		395.1		(141.3		)	761.4
Operating profit (loss)	(34.7		)	77.7		68.9		4.0			115.9
Other (income) expense	6.1			6.6		30.7		—			43.4
Equity in earnings of subsidiaries, net of taxes	57.6			17.0		—		(74.6		)	—
Income before income taxes	16.8			88.1		38.2		(70.6		)	72.5
Provision (benefit) for income taxes	(29.2		)	40.4		9.8		(0.2		)	20.8
Net income	46.0			47.7		28.4		(70.4		)	51.7
Net income attributable to noncontrolling interest	—			—		—		5.7			5.7
Net income attributable to controlling interest	$	46.0		$	47.7	$	28.4	$	(76.1	)	$	46.0

Net income	$	46.0		$	47.7	$	28.4	$	(70.4	)	$	51.7
Other comprehensive income (loss)	1.0			—		1.1		—			2.1
Comprehensive income	47.0			47.7		29.5		(70.4		)	53.8
Comprehensive income attributable to noncontrolling interest	—			—		—		6.5			6.5
Comprehensive income attributable to controlling interest	$	47.0		$	47.7	$	29.5	$	(76.9	)	$	47.3



Balance Sheet
March 31, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Assets:
Cash and cash equivalents	$	607.7	$	7.6	$	53.3	$	(43.2	)	$	625.4
Short-term marketable securities	220.8		—		—		—			220.8
Receivables, net of allowance	2.0		167.2		173.3		—			342.5
Income tax receivable	25.7		—		4.9		—			30.6
Inventory	—		371.8		238.2		(10.6		)	599.4
Property, plant, and equipment, net	46.8		2,549.9		4,312.2		(515.4		)	6,393.5
Investments in and advances to subsidiaries	5,613.8		2,905.8		325.9		(8,845.5		)	—
Restricted cash	—		—		134.1		43.2			177.3
Goodwill and other assets	162.5		592.4		335.1		(2.5		)	1,087.5
	$	6,679.3	$	6,594.7	$	5,577.0	$	(9,374.0	)	$	9,477.0
Liabilities:
Accounts payable	$	10.0	$	57.5	$	116.0	$	(0.1	)	$	183.4
Accrued liabilities	214.0		51.3		133.6		(2.5		)	396.4
Debt	843.2		27.4		2,352.8		—			3,223.4
Deferred income	—		18.5		1.3		—			19.8
Deferred income taxes	48.2		700.9		13.7		(5.8		)	757.0
Advances from subsidiaries	669.1		—		—		(669.1		)	—
Other liabilities	64.2		0.7		1.5		—			66.4
Total stockholders' equity	4,830.6		5,738.4		2,958.1		(8,696.5		)	4,830.6
	$	6,679.3	$	6,594.7	$	5,577.0	$	(9,374.0	)	$	9,477.0



Balance Sheet
December 31, 2017
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in millions)
Assets:
Cash and cash equivalents	$	763.9	$	1.6	$	65.3	$	(52.2	)	$	778.6
Short-term marketable securities	319.5		—		—		—			319.5
Receivables, net of allowance	1.1		204.2		164.4		—			369.7
Income tax receivable	24.0		—		5.0		—			29.0
Inventory	—		413.6		236.8		(9.8		)	640.6
Property, plant, and equipment, net	47.6		2,310.7		4,293.0		(516.6		)	6,134.7
Investments in and advances to subsidiaries	5,515.2		3,049.7		255.5		(8,820.4		)	—
Restricted cash	—		—		143.0		52.2			195.2
Goodwill and other assets	159.2		590.9		326.3		(0.5		)	1,075.9
	$	6,830.5	$	6,570.7	$	5,489.3	$	(9,347.3	)	$	9,543.2
Liabilities:
Accounts payable	$	7.5	$	65.9	$	102.2	$	(0.2	)	$	175.4
Accrued liabilities	236.5		59.1		144.9		(0.5		)	440.0
Debt	838.1		28.3		2,376.0		—			3,242.4
Deferred income	—		19.1		1.4		—			20.5
Deferred income taxes	53.8		683.2		5.9		0.3			743.2
Advances from subsidiaries	775.2		—		—		(775.2		)	—
Other liabilities	61.4		0.7		1.6		—			63.7
Total stockholders' equity	4,858.0		5,714.4		2,857.3		(8,571.7		)	4,858.0
	$	6,830.5	$	6,570.7	$	5,489.3	$	(9,347.3	)	$	9,543.2



Statement of Cash Flows
Three Months Ended March 31, 2018
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net income	$	40.2		$	62.4		$	38.5		$	(99.5	)	$	41.6
Equity in earnings of subsidiaries, net of taxes	(84.4		)	(25.2		)	—			109.6			—
Other	(13.5		)	95.2			61.1			(10.7		)	132.1
Net cash provided (required) by operating activities	(57.7		)	132.4			99.6			(0.6		)	173.7

Investing activities:
(Increase) decrease in short-term marketable securities	98.7			—			—			—			98.7
Proceeds from railcar lease fleet sales owned more than one year	—			15.5			—			—			15.5
Proceeds from dispositions of property and other assets	—			0.7			1.8			—			2.5
Capital expenditures – leasing	—			(297.2		)	(21.0		)	—			(318.2		)
Capital expenditures – manufacturing and other	(1.4		)	(3.6		)	(10.8		)	—			(15.8		)
Acquisitions, net of cash acquired	—			—			(25.0		)	—			(25.0		)
(Increase) decrease in investment in partially-owned subsidiaries	—			3.9			—			(3.9		)	—
Other	—			0.8			—			—			0.8
Net cash provided (required) by investing activities	97.3			(279.9		)	(55.0		)	(3.9		)	(241.5		)

Financing activities:
Payments to retire debt	—			(0.9		)	(25.6		)	—			(26.5		)
Proceeds from issuance of debt	—			—			0.9			—			0.9
Shares repurchased	(49.3		)	—			—			—			(49.3		)
Dividends paid to common shareholders	(19.5		)	—			—			—			(19.5		)
Purchase of shares to satisfy employee tax on vested stock	(0.1		)	—			—			—			(0.1		)
Distributions to noncontrolling interest	—			—			(5.8		)	—			(5.8		)
Distributions to controlling interest in partially-owned subsidiaries	—			—			3.9			(3.9		)	—
Change in intercompany financing between entities	(126.9		)	154.4			(35.9		)	8.4			—
Other	—			—			(3.0		)	—			(3.0		)
Net cash provided (required) by financing activities	(195.8		)	153.5			(65.5		)	4.5			(103.3		)

Net increase (decrease) in cash, cash equivalents, and restricted cash	(156.2		)	6.0			(20.9		)	—			(171.1		)
Cash, cash equivalents, and restricted cash at beginning of period	763.9			1.6			208.3			—			973.8
Cash, cash equivalents, and restricted cash at end of period	$	607.7		$	7.6		$	187.4		$	—		$	802.7



Statement of Cash Flows
Three Months Ended March 31, 2017
	Parent			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating activities:
Net income	$	46.0		$	47.7		$	28.4		$	(70.4	)	$	51.7
Equity in earnings of subsidiaries, net of taxes	(57.6		)	(17.0		)	—			74.6			—
Other	10.2			132.7			29.3			(3.8		)	168.4
Net cash provided (required) by operating activities	(1.4		)	163.4			57.7			0.4			220.1

Investing activities:
(Increase) decrease in short-term marketable securities	42.6			—			—			—			42.6
Proceeds from railcar lease fleet sales owned more than one year	—			—			—			—			—
Proceeds from dispositions of property and other assets	—			0.6			3.0			—			3.6
Capital expenditures – leasing	—			(161.7		)	(1.2		)	—			(162.9		)
Capital expenditures – manufacturing and other	(2.1		)	(6.2		)	(16.0		)	—			(24.3		)
Acquisitions, net of cash acquired	—			—			—			—			—
(Increase) decrease in investment in partially-owned subsidiaries	—			4.9			—			(4.9		)	—
Other	—			—			0.5			—			0.5
Net cash provided (required) by investing activities	40.5			(162.4		)	(13.7		)	(4.9		)	(140.5		)

Financing activities:
Payments to retire debt	—			(0.9		)	(25.8		)	—			(26.7		)
Proceeds from issuance of debt	—			—			—			—			—
Shares repurchased	—			—			—			—			—
Dividends paid to common shareholders	(16.7		)	—			—			—			(16.7		)
Purchase of shares to satisfy employee tax on vested stock	—			—			—			—			—
Distributions to noncontrolling interest	—			—			(7.3		)	—			(7.3		)
Distributions to controlling interest in partially-owned subsidiaries	—			—			(4.9		)	4.9			—
Change in intercompany financing between entities	2.6			(0.1		)	(2.0		)	(0.5		)	—
Other	—			—			—			—			—
Net cash provided (required) by financing activities	(14.1		)	(1.0		)	(40.0		)	4.4			(50.7		)

Net increase (decrease) in cash, cash equivalents, and restricted cash	25.0			—			4.0			(0.1		)	28.9
Cash, cash equivalents, and restricted cash at beginning of period	537.9			5.2			198.4			0.1			741.6
Cash, cash equivalents, and restricted cash at end of period	$	562.9		$	5.2		$	202.4		$	—		$	770.5