Note 3. Derivative Instruments and Fair Value Measurements Derivative Instruments (Notes)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivative Instruments

We use derivative instruments to mitigate the impact of changes in interest rates, both in anticipation of future debt issuances and to offset interest rate variability of certain floating rate debt issuances outstanding. We also may use derivative instruments to mitigate the impact of changes in natural gas and diesel fuel prices and changes in foreign currency exchange rates. Derivative instruments that are designated and qualify as cash flow hedges are accounted for by recording the effective portion of the gain or loss on the derivative instrument in accumulated other comprehensive loss ("AOCL") as a separate component of stockholders' equity and reclassified into earnings in the period during which the hedged transaction affects earnings. We continuously monitor our derivative positions and the credit ratings of our counterparties and do not anticipate losses due to non-performance. See Note 8 for a description of our debt instruments.

Interest Rate Hedges

					Included in accompanying balance sheet at December 31, 2020
	Notional Amount		Interest Rate (1)		Asset/(Liability)		AOCL – loss/ (income) Controlling Interest		AOCL – loss/ (income) Noncontrolling Interest
	(in millions, except %)
Expired hedges:
2018 secured railcar equipment notes	$	249.3	4.41	%	$	—	$	0.8	$	—
TRIP Holdings warehouse loan	$	788.5	3.60	%	$	—	$	1.3	$	1.8
TRIP Master Funding secured railcar equipment notes	$	34.8	2.62	%	$	—	$	0.1	$	0.1
2017 promissory notes – interest rate cap	$	169.3	3.00	%	$	—	$	(0.5)	$	—
Open hedge:
2017 promissory notes – interest rate swap	$	488.0	2.66	%	$	(45.2)	$	44.7	$	—

(1) Weighted average fixed interest rate, except for the interest rate cap on the 2017 promissory notes.

	Effect on interest expense – increase/(decrease)
	Year Ended December 31,						Expected effect during next twelve months(1)
	2020		2019		2018
	(in millions)
Expired hedges:
2006 secured railcar equipment notes (2)	$	(0.1)	$	(0.2)	$	(0.2)	$	—
2018 secured railcar equipment notes	$	0.2	$	0.2	$	0.1	$	0.2
TRIP Holdings warehouse loan	$	2.0	$	2.0	$	2.2	$	1.8
TRIP Master Funding secured railcar equipment notes	$	0.2	$	0.2	$	0.2	$	0.1
2017 promissory notes – interest rate cap	$	(0.1)	$	(0.1)	$	0.1	$	(0.1)
Open hedge:
2017 promissory notes – interest rate swap	$	11.0	$	3.1	$	0.3	$	11.0

(1) Based on the fair value of open hedges as of December 31, 2020.

(2) Upon settlement of the debt in March 2020, the remaining balance of $0.1 million in AOCL was recognized through interest expense. See Note 8 for additional information on the debt redemption.

Other Derivatives

			Included in  accompanying balance sheet at December 31, 2020				Effect on cost of revenues – increase/(decrease)
	Notional Amount		Asset/(Liability)		AOCL – loss/(income)		Year Ended December 31,				Expected effect during next twelve months(1)
							2020		2019
	(in millions)
Foreign currency hedge	$	30.0	$	4.8	$	(7.3)	$	3.2	$	0.1	$	(7.3)

(1) Based on the fair value of open hedges as of December 31, 2020.

Our exposure related to foreign currency and commodity transactions is currently hedged for up to a maximum of twelve months. The effect of commodity hedge transactions was immaterial to the Consolidated Financial Statements for all periods presented herein.