Earnings Per Common Share

3 Months Ended

Mar. 31, 2022

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 2.4 million dilutive equivalents from restricted stock and stock options excluded from the computation of diluted earnings per common share for the three months ended March 31, 2021 as we incurred a loss from continuing operations 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.


	Three Months Ended March 31,
		2022		2021
		(in millions, except per share amounts)
Income (loss) from continuing operations		$	9.9	$	(5.0)
Less: Net (income) loss attributable to noncontrolling interest		(2.6)		2.0

Net income (loss) from continuing operations attributable to Trinity Industries, Inc.		7.3		(3.0)
Income (loss) from discontinued operations, net of income taxes		(6.9)		6.3
Loss on sale of discontinued operations, net of income taxes		(1.1)		—

Net income (loss) from discontinued operations attributable to Trinity Industries, Inc.		(8.0)		6.3
Net income (loss) attributable to Trinity Industries, Inc.		$	(0.7)	$	3.3

Basic weighted average shares outstanding		82.9		110.2
Effect of dilutive securities		2.6		—
Diluted weighted average shares outstanding		85.5		110.2

Basic earnings per common share:
Income (loss) from continuing operations		$	0.09	$	(0.03)
Income (loss) from discontinued operations		(0.10)		0.06
Basic net income (loss) attributable to Trinity Industries, Inc.		$	(0.01)	$	0.03
Diluted earnings per common share:
Income (loss) from continuing operations		$	0.09	$	(0.03)
Income (loss) from discontinued operations		(0.10)		0.06
Diluted net income (loss) attributable to Trinity Industries, Inc.		$	(0.01)	$	0.03

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