Earnings Per Common Share

9 Months Ended

Sep. 30, 2021

Basic net income (loss) attributable to Trinity Industries, Inc. per common share ("EPS") is computed by dividing net income (loss) attributable to Trinity remaining after allocation to unvested restricted shares by the weighted average number of basic common shares outstanding for the period. Except when the effect would be antidilutive, the calculation of diluted EPS includes the net impact of potentially dilutive common shares. The Company has certain unvested RSAs that participate in dividends on a nonforfeitable basis and are therefore considered to be participating securities. Consequently, diluted net income (loss) attributable to Trinity Industries, Inc. per common share is calculated under both the two-class method and the treasury stock method, and the more dilutive of the two calculations is presented. There were no restricted shares and stock options included in the computation of diluted earnings per common share for the nine months ended September 30, 2020 as we incurred a loss for the period, and any effect on loss per common share would have been antidilutive.

The following table sets forth the computation of basic and diluted net income (loss) attributable to Trinity Industries, Inc. for the three and nine months ended September 30, 2021 and 2020.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in millions, except per share amounts)
Income (loss) from continuing operations	$	36.3	$	25.9	$	42.8	$	(99.4)
Less: Net (income) loss attributable to noncontrolling interest	(3.9)		(0.8)		6.0		79.5
Unvested restricted share participation – continuing operations	—		(0.2)		—		—
Net income (loss) from continuing operations attributable to Trinity Industries, Inc.	32.4		24.9		48.8		(19.9)
Net loss from discontinued operations, net of income taxes	(0.4)		—		(0.8)		(0.2)
Unvested restricted share participation – discontinued operations	—		—		—		—
Net loss from discontinued operations attributable to Trinity Industries, Inc.	(0.4)		—		(0.8)		(0.2)
Net income (loss) attributable to Trinity Industries, Inc., including the effect of unvested restricted share participation	$	32.0	$	24.9	$	48.0	$	(20.1)

Basic weighted average shares outstanding	97.7		116.4		103.4		117.2
Effect of dilutive securities	1.8		0.6		2.3		—
Diluted weighted average shares outstanding	99.5		117.0		105.7		117.2

Basic earnings per common share:
Income (loss) from continuing operations	$	0.33	$	0.21	$	0.47	$	(0.17)
Income (loss) from discontinued operations	—		—		(0.01)		—
Basic net income (loss) attributable to Trinity Industries, Inc.	$	0.33	$	0.21	$	0.46	$	(0.17)
Diluted earnings per common share:
Income (loss) from continuing operations	$	0.33	$	0.21	$	0.46	$	(0.17)
Income (loss) from discontinued operations	—		—		(0.01)		—
Diluted net income (loss) attributable to Trinity Industries, Inc.	$	0.33	$	0.21	$	0.45	$	(0.17)


Potentially dilutive securities excluded from EPS calculation:
Antidilutive restricted shares	0.1		0.3		0.1		—
Antidilutive stock options	—		0.3		—		—