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Financial Statements for Guarantors of the Senior Notes
 3 Months Ended
Mar. 31, 2020
Financial Statements for Guarantors of the Senior Notes [Abstract]  
Financial Statements for Guarantors of the Senior Notes Financial Statements for Guarantors of the Senior Notes
Our Senior Notes are fully and unconditionally and jointly and severally guaranteed by certain of Trinity’s 100%-owned subsidiaries: Trinity Industries Leasing Company; Trinity North American Freight Car, Inc.; Trinity Rail Group, LLC; Trinity Tank Car, Inc.; Trinity Highway Products, LLC; and TrinityRail Maintenance Services, 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 our revolving credit facility. See Note 8 of our 2019 Annual Report on Form 10-K. The Senior Notes are not guaranteed by any of our remaining 100%-owned subsidiaries or partially-owned subsidiaries (“Combined Non-Guarantor Subsidiaries”).
As of March 31, 2020, assets held by the Combined Non-Guarantor Subsidiaries included $76.9 million of restricted cash that was not available for distribution to Trinity Industries, Inc. (“Parent”), $6,241.9 million of equipment securing certain non-recourse debt, and $136.2 million of assets located in foreign locations. As of December 31, 2019, assets held by the Combined Non-Guarantor Subsidiaries included $86.1 million of restricted cash that was not available for distribution to the Parent, $6,409.8 million of equipment securing certain non-recourse debt, and $136.0 million of assets located in foreign locations.
Condensed Consolidating Statement of Operations and Comprehensive Income
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
Parent
 
Combined
Guarantor
Subsidiaries
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Revenues
$
—

 
$
398.9

 
$
264.2

 
$
(47.9
)
 
$
615.2

Cost of revenues
1.5

 
330.8

 
206.7

 
(57.0
)
 
482.0

Selling, engineering, and administrative expenses
24.1

 
24.5

 
15.7

 
—

 
64.3

Gains on dispositions of property
0.1

 
2.3

 
7.2

 
—

 
9.6

Restructuring activities, net
6.4

 
2.2

 
(3.1
)
 
—

 
5.5

 
31.9

 
355.2

 
212.1

 
(57.0
)
 
542.2

Operating profit (loss)
(31.9
)
 
43.7

 
52.1

 
9.1

 
73.0

Other (income) expense
0.4

 
11.6

 
46.3

 
(0.2
)
 
58.1

Equity in earnings of subsidiaries, net of taxes
54.9

 
8.5

 
4.8

 
(68.2
)
 
—

Income from continuing operations before income taxes
22.6

 
40.6

 
10.6

 
(58.9
)
 
14.9

Provision (benefit) for income taxes
(139.3
)
 
(0.1
)
 
1.2

 
(9.4
)
 
(147.6
)
Income from continuing operations
161.9

 
40.7

 
9.4

 
(49.5
)
 
162.5

Loss from discontinued operations, net of income taxes
(0.2
)
 
—

 
—

 
—

 
(0.2
)
Net income
161.7

 
40.7

 
9.4

 
(49.5
)
 
162.3

Net income attributable to noncontrolling interest
—

 
—

 
—

 
0.6

 
0.6

Net income attributable to controlling interest
$
161.7

 
$
40.7

 
$
9.4

 
$
(50.1
)
 
$
161.7

 
 
 
 
 
 
 
 
 
 
Net income
$
161.7

 
$
40.7

 
$
9.4

 
$
(49.5
)
 
$
162.3

Other comprehensive income (loss)
1.4

 
—

 
(24.6
)
 
—

 
(23.2
)
Comprehensive income
163.1

 
40.7

 
(15.2
)
 
(49.5
)
 
139.1

Comprehensive loss attributable to noncontrolling interest
—

 
—

 
—

 
0.9

 
0.9

Comprehensive income attributable to controlling interest
$
163.1

 
$
40.7

 
$
(15.2
)
 
$
(50.4
)
 
$
138.2

Condensed Consolidating Statement of Operations and Comprehensive Income
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
Parent
 
Combined
Guarantor
Subsidiaries
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Revenues
$
—

 
$
409.5

 
$
261.0

 
$
(65.7
)
 
$
604.8

Cost of revenues
0.9

 
343.5

 
194.0

 
(75.0
)
 
463.4

Selling, engineering, and administrative expenses
20.7

 
26.2

 
12.7

 
—

 
59.6

Gains on dispositions of property
—

 
1.7

 
8.3

 
—

 
10.0

 
21.6

 
368.0

 
198.4

 
(75.0
)
 
513.0

Operating profit (loss)
(21.6
)
 
41.5

 
62.6

 
9.3

 
91.8

Other (income) expense
4.7

 
1.5

 
45.5

 
—

 
51.7

Equity in earnings of subsidiaries, net of taxes
54.2

 
15.4

 
5.0

 
(74.6
)
 
—

Income from continuing operations before income taxes
27.9

 
55.4

 
22.1

 
(65.3
)
 
40.1

Provision (benefit) for income taxes
(3.6
)
 
12.7

 
1.2

 
(1.4
)
 
8.9

Income from continuing operations
31.5

 
42.7

 
20.9

 
(63.9
)
 
31.2

Loss from discontinued operations, net of income taxes
(0.9
)
 
—

 
(0.2
)
 
—

 
(1.1
)
Net income
30.6

 
42.7

 
20.7

 
(63.9
)
 
30.1

Net loss attributable to noncontrolling interest
—

 
—

 
—

 
(0.5
)
 
(0.5
)
Net income attributable to controlling interest
$
30.6

 
$
42.7

 
$
20.7

 
$
(63.4
)
 
$
30.6

 
 
 
 
 
 
 
 
 
 
Net income
$
30.6

 
$
42.7

 
$
20.7

 
$
(63.9
)
 
$
30.1

Other comprehensive income (loss)
0.8

 
—

 
(4.6
)
 
—

 
(3.8
)
Comprehensive income
31.4

 
42.7

 
16.1

 
(63.9
)
 
26.3

Comprehensive loss attributable to noncontrolling interest
—

 
—

 
—

 
(0.2
)
 
(0.2
)
Comprehensive income attributable to controlling interest
$
31.4

 
$
42.7

 
$
16.1

 
$
(63.7
)
 
$
26.5


Condensed Consolidating Balance Sheet
 
 
 
 
 
 
 
 
 
March 31, 2020
 
 
 
 
 
 
 
 
 
 
Parent
 
Combined
Guarantor
Subsidiaries
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
199.7

 
$
5.6

 
$
27.3

 
$
(19.4
)
 
$
213.2

Receivables, net of allowance
0.7

 
211.2

 
85.9

 
—

 
297.8

Income tax receivable
389.0

 
—

 
0.1

 
—

 
389.1

Inventory
—

 
405.2

 
36.8

 
—

 
442.0

Property, plant, and equipment, net
31.3

 
1,459.4

 
6,433.2

 
(805.2
)
 
7,118.7

Investments in and advances to subsidiaries
4,611.6

 
3,202.2

 
318.3

 
(8,132.1
)
 
—

Restricted cash
—

 
—

 
76.9

 
19.4

 
96.3

Goodwill and other assets
148.6

 
230.2

 
68.3

 
(1.3
)
 
445.8

 
$
5,380.9

 
$
5,513.8

 
$
7,046.8

 
$
(8,938.6
)
 
$
9,002.9

Liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
13.3

 
$
116.7

 
$
78.6

 
$
(0.1
)
 
$
208.5

Accrued liabilities
160.5

 
29.6

 
159.6

 
(1.2
)
 
348.5

Debt
527.9

 
—

 
4,342.3

 
—

 
4,870.2

Deferred income taxes
126.7

 
898.0

 
(8.7
)
 
0.1

 
1,016.1

Advances from subsidiaries
2,033.5

 
—

 
—

 
(2,033.5
)
 
—

Other liabilities
52.9

 
39.6

 
1.0

 
—

 
93.5

Total stockholders' equity
2,466.1

 
4,429.9

 
2,474.0

 
(6,903.9
)
 
2,466.1

 
$
5,380.9

 
$
5,513.8

 
$
7,046.8

 
$
(8,938.6
)
 
$
9,002.9


Condensed Consolidating Balance Sheet
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
Parent
 
Combined
Guarantor
Subsidiaries
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
155.1

 
$
0.1

 
$
36.3

 
$
(25.3
)
 
$
166.2

Receivables, net of allowance
1.3

 
185.7

 
74.0

 
(0.9
)
 
260.1

Income tax receivable
14.6

 
—

 
0.1

 
—

 
14.7

Inventory
—

 
398.8

 
34.7

 
(0.1
)
 
433.4

Property, plant, and equipment, net
37.8

 
1,320.7

 
6,595.8

 
(843.7
)
 
7,110.6

Investments in and advances to subsidiaries
4,600.0

 
3,136.2

 
347.0

 
(8,083.2
)
 
—

Restricted cash
—

 
—

 
86.1

 
25.3

 
111.4

Goodwill and other assets
190.9

 
394.4

 
58.6

 
(38.9
)
 
605.0

 
$
4,999.7

 
$
5,435.9

 
$
7,232.6

 
$
(8,966.8
)
 
$
8,701.4

Liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
5.3

 
$
109.1

 
$
90.6

 
$
(1.1
)
 
$
203.9

Accrued liabilities
166.7

 
23.2

 
152.9

 
(0.7
)
 
342.1

Debt
522.8

 
—

 
4,359.1

 
—

 
4,881.9

Deferred income taxes
—

 
844.6

 
(8.2
)
 
(38.1
)
 
798.3

Advances from subsidiaries
1,871.8

 
—

 
—

 
(1,871.8
)
 
—

Other liabilities
54.2

 
40.9

 
1.2

 
—

 
96.3

Total stockholders' equity
2,378.9

 
4,418.1

 
2,637.0

 
(7,055.1
)
 
2,378.9

 
$
4,999.7

 
$
5,435.9

 
$
7,232.6

 
$
(8,966.8
)
 
$
8,701.4



Condensed Consolidating Statement of Cash Flows
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
Parent
 
Combined
Guarantor
Subsidiaries
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Operating activities:
 
 
 
 
 
 
 
 
 
Net income
$
161.7

 
$
40.7

 
$
9.4

 
$
(49.5
)
 
$
162.3

Loss from discontinued operations
0.2

 
—

 
—

 
—

 
0.2

Equity in earnings of subsidiaries, net of taxes
(54.9
)
 
(8.5
)
 
(4.8
)
 
68.2

 
—

Other
(199.6
)
 
210.7

 
5.1

 
(4.9
)
 
11.3

Net cash provided by (used in) operating activities – continuing operations
(92.6
)
 
242.9

 
9.7

 
13.8

 
173.8

Net cash used in operating activities – discontinued operations
(0.2
)
 
—

 
—

 
—

 
(0.2
)
Net cash provided by (used in) operating activities
(92.8
)
 
242.9

 
9.7

 
13.8

 
173.6

 
 
 
 
 
 
 
 
 
 
Investing activities:
 
 
 
 
 
 
 
 
 
Proceeds from railcar lease fleet sales owned more than one year
—

 
278.1

 
359.5

 
(569.1
)
 
68.5

Proceeds from dispositions of property and other assets
—

 
0.5

 
9.3

 
—

 
9.8

Capital expenditures – leasing
—

 
(442.2
)
 
(256.1
)
 
569.1

 
(129.2
)
Capital expenditures – manufacturing and other
(0.6
)
 
(7.2
)
 
(6.2
)
 
—

 
(14.0
)
Other
—

 
—

 
0.3

 
—

 
0.3

Net cash (used in) provided by investing activities
(0.6
)
 
(170.8
)
 
106.8

 
—

 
(64.6
)
 
 
 
 
 
 
 
 
 
 
Financing activities:
 
 
 
 
 
 
 
 
 
Payments to retire debt
(175.0
)
 
—

 
(296.4
)
 
—

 
(471.4
)
Proceeds from issuance of debt
180.0

 
—

 
272.4

 
—

 
452.4

Shares repurchased
(35.4
)
 
—

 
—

 
—

 
(35.4
)
Dividends paid to common shareholders
(22.7
)
 
—

 
—

 
—

 
(22.7
)
Change in intercompany financing between entities
191.1

 
(66.6
)
 
(110.7
)
 
(13.8
)
 
—

Net cash (used in) provided by financing activities
138.0

 
(66.6
)
 
(134.7
)
 
(13.8
)
 
(77.1
)
Net decrease in cash, cash equivalents, and restricted cash
44.6

 
5.5

 
(18.2
)
 
—

 
31.9

Cash, cash equivalents, and restricted cash at beginning of period
155.1

 
0.1

 
122.4

 
—

 
277.6

Cash, cash equivalents, and restricted cash at end of period
$
199.7

 
$
5.6

 
$
104.2

 
$
—

 
$
309.5

Condensed Consolidating Statement of Cash Flows
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
Parent
 
Combined
Guarantor
Subsidiaries
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Operating activities:
 
 
 
 
 
 
 
 
 
Net income
$
30.6

 
$
42.7

 
$
20.7

 
$
(63.9
)
 
$
30.1

Loss from discontinued operations
0.9

 
—

 
0.2

 
—

 
1.1

Equity in earnings of subsidiaries, net of taxes
(54.2
)
 
(15.4
)
 
(5.0
)
 
74.6

 
—

Other
(23.3
)
 
(184.8
)
 
58.7

 
(6.6
)
 
(156.0
)
Net cash (used in) provided by operating activities – continuing operations
(46.0
)
 
(157.5
)
 
74.6

 
4.1

 
(124.8
)
Net cash used in operating activities – discontinued operations
(0.9
)
 
—

 
(0.2
)
 
—

 
(1.1
)
Net cash (used in) provided by operating activities
(46.9
)
 
(157.5
)
 
74.4

 
4.1

 
(125.9
)
 
 
 
 
 
 
 
 
 
 
Investing activities:
 
 
 
 
 
 
 
 
 
Proceeds from railcar lease fleet sales owned more than one year
—

 
0.4

 
29.0

 
—

 
29.4

Proceeds from dispositions of property and other assets
—

 
—

 
7.3

 
—

 
7.3

Capital expenditures – leasing
—

 
(448.0
)
 
(17.0
)
 
—

 
(465.0
)
Capital expenditures – manufacturing and other
(0.6
)
 
(7.3
)
 
(3.6
)
 
—

 
(11.5
)
(Increase) decrease in investment in partially-owned subsidiaries
—

 
0.3

 
—

 
(0.3
)
 
—

Other
—

 
—

 
1.3

 
—

 
1.3

Net cash (used in) provided by investing activities
(0.6
)
 
(454.6
)
 
17.0

 
(0.3
)
 
(438.5
)
 
 
 
 
 
 
 
 
 
 
Financing activities:
 
 
 
 
 
 
 
 
 
Payments to retire debt
(150.0
)
 
—

 
(64.8
)
 
—

 
(214.8
)
Proceeds from issuance of debt
400.0

 
—

 
249.7

 
—

 
649.7

Shares repurchased
(25.0
)
 
—

 
10.0

 
—

 
(15.0
)
Dividends paid to common shareholders
(17.3
)
 
—

 
—

 
—

 
(17.3
)
Purchase of shares to satisfy employee tax on vested stock
(0.5
)
 
—

 
—

 
—

 
(0.5
)
Distributions to noncontrolling interest
—

 
—

 
(0.4
)
 
—

 
(0.4
)
Distributions to controlling interest in partially-owned subsidiaries
—

 
—

 
0.3

 
(0.3
)
 
—

Change in intercompany financing between entities
(251.4
)
 
610.9

 
(356.0
)
 
(3.5
)
 
—

Net cash (used in) provided by financing activities
(44.2
)
 
610.9

 
(161.2
)
 
(3.8
)
 
401.7

Net decrease in cash, cash equivalents, and restricted cash
(91.7
)
 
(1.2
)
 
(69.8
)
 
—

 
(162.7
)
Cash, cash equivalents, and restricted cash at beginning of period
154.7

 
4.1

 
192.0

 
—

 
350.8

Cash, cash equivalents, and restricted cash at end of period
$
63.0

 
$
2.9

 
$
122.2

 
$
—

 
$
188.1