Note 14. Earnings Per Common Share

12 Months Ended

Dec. 31, 2023

Earnings Per Common Share [Abstract]

Note 14. Earnings Per Common Share

Basic net income attributable to Trinity Industries, Inc. per common share ("EPS") is computed by dividing net income 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 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.

The following table sets forth the computation of basic and diluted net income attributable to Trinity Industries, Inc.:


	Year Ended December 31,
	2023		2022		2021
	(in millions, except per share amounts)
Income from continuing operations	$	140.0	$	98.9	$	39.3
Less: Net (income) loss attributable to noncontrolling interest	(20.6)		(12.8)		0.2

Net income from continuing operations attributable to Trinity Industries, Inc.	119.4		86.1		39.5
Income (loss) from discontinued operations, net of income taxes	(13.4)		(20.3)		11.1
Gain (loss) on sale of discontinued operations, net of income taxes	—		(5.7)		131.4

Net income (loss) from discontinued operations attributable to Trinity Industries, Inc.	(13.4)		(26.0)		142.5
Net income attributable to Trinity Industries, Inc.	$	106.0	$	60.1	$	182.0

Basic weighted average shares outstanding	81.2		81.9		101.5
Effect of dilutive securities	2.2		2.3		2.3
Diluted weighted average shares outstanding	83.4		84.2		103.8

Basic earnings per common share:
Income from continuing operations	$	1.47	$	1.05	$	0.39
Income (loss) from discontinued operations	(0.16)		(0.32)		1.40
Basic net income attributable to Trinity Industries Inc.	$	1.31	$	0.73	$	1.79
Diluted earnings per common share:
Income from continuing operations	$	1.43	$	1.02	$	0.38
Income (loss) from discontinued operations	(0.16)		(0.31)		1.37
Diluted net income attributable to Trinity Industries Inc.	$	1.27	$	0.71	$	1.75

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