(Mark One) |
þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware (State or Other Jurisdiction of Incorporation or Organization) |
75-0225040 (I.R.S. Employer Identification No.) |
2525 Stemmons Freeway Dallas, Texas (Address of principal executive offices) |
75207-2401 (Zip Code) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Caption | Page | |||||||
PART I | ||||||||
Item 1. | 2 | |||||||
Item 2. | 25 | |||||||
Item 3. | 36 | |||||||
Item 4. | 36 | |||||||
PART II | ||||||||
Item 1. | 37 | |||||||
Item 1A. | 37 | |||||||
Item 2. | 37 | |||||||
Item 3. | 37 | |||||||
Item 5. | 38 | |||||||
Item 6. | 39 | |||||||
SIGNATURES | 40 | |||||||
CERTIFICATIONS | ||||||||
EX-31.1 | ||||||||
EX-31.2 | ||||||||
EX-32.1 | ||||||||
EX-32.2 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
1
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Revenues: |
||||||||||||||||
Manufacturing |
$ | 643.7 | $ | 417.9 | $ | 1,738.2 | $ | 1,174.2 | ||||||||
Leasing |
153.1 | 122.1 | 413.3 | 362.9 | ||||||||||||
796.8 | 540.0 | 2,151.5 | 1,537.1 | |||||||||||||
Operating costs: |
||||||||||||||||
Cost of revenues: |
||||||||||||||||
Manufacturing |
548.7 | 343.7 | 1,474.7 | 975.3 | ||||||||||||
Leasing |
82.7 | 63.8 | 217.2 | 198.3 | ||||||||||||
Other |
7.1 | 2.1 | 22.6 | 8.3 | ||||||||||||
638.5 | 409.6 | 1,714.5 | 1,181.9 | |||||||||||||
Selling, engineering, and administrative expenses: |
||||||||||||||||
Manufacturing |
35.8 | 33.7 | 103.2 | 99.6 | ||||||||||||
Leasing |
6.2 | 5.4 | 17.5 | 14.3 | ||||||||||||
Other |
11.5 | 9.6 | 30.6 | 28.7 | ||||||||||||
53.5 | 48.7 | 151.3 | 142.6 | |||||||||||||
Gain on disposition of flood-damaged property, plant,
and equipment |
0.6 | 10.2 | 0.6 | 10.2 | ||||||||||||
Total operating profit |
105.4 | 91.9 | 286.3 | 222.8 | ||||||||||||
Other (income) expense: |
||||||||||||||||
Interest income |
(0.5 | ) | (0.3 | ) | (1.2 | ) | (1.0 | ) | ||||||||
Interest expense |
47.9 | 45.3 | 136.2 | 136.3 | ||||||||||||
Other, net |
5.3 | 0.2 | 4.2 | 1.1 | ||||||||||||
52.7 | 45.2 | 139.2 | 136.4 | |||||||||||||
Income before income taxes |
52.7 | 46.7 | 147.1 | 86.4 | ||||||||||||
Provision for income taxes |
21.1 | 15.2 | 58.3 | 29.5 | ||||||||||||
Net income |
31.6 | 31.5 | 88.8 | 56.9 | ||||||||||||
Net income (loss) attributable to noncontrolling interest |
(0.3 | ) | 1.8 | 2.7 | 6.8 | |||||||||||
Net income attributable to Trinity Industries, Inc. |
$ | 31.9 | $ | 29.7 | $ | 86.1 | $ | 50.1 | ||||||||
Net income attributable to Trinity Industries, Inc. per
common share: |
||||||||||||||||
Basic |
$ | 0.40 | $ | 0.37 | $ | 1.07 | $ | 0.63 | ||||||||
Diluted |
$ | 0.40 | $ | 0.37 | $ | 1.07 | $ | 0.63 | ||||||||
Weighted average number of shares outstanding: |
||||||||||||||||
Basic |
77.7 | 77.0 | 77.4 | 76.8 | ||||||||||||
Diluted |
77.9 | 77.1 | 77.7 | 76.9 | ||||||||||||
Dividends declared per common share |
$ | 0.09 | $ | 0.08 | $ | 0.26 | $ | 0.24 |
2
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(unaudited) | ||||||||
(in millions) | ||||||||
Assets |
||||||||
Cash and cash equivalents |
$ | 272.8 | $ | 354.0 | ||||
Short-term marketable securities |
| 158.0 | ||||||
Receivables, net of allowance |
317.3 | 232.0 | ||||||
Income tax receivable |
| 7.4 | ||||||
Inventories: |
||||||||
Raw materials and supplies |
314.2 | 169.4 | ||||||
Work in process |
138.5 | 83.3 | ||||||
Finished goods |
93.8 | 78.6 | ||||||
546.5 | 331.3 | |||||||
Property, plant, and equipment, at cost, including TRIP
Holdings of $1,273.5 and $1,282.1 |
5,422.7 | 5,202.2 | ||||||
Less accumulated depreciation, including TRIP Holdings
of $115.6 and $90.3 |
(1,191.7 | ) | (1,090.2 | ) | ||||
4,231.0 | 4,112.0 | |||||||
Goodwill |
225.9 | 197.6 | ||||||
Restricted cash, including TRIP Holdings of $61.5 and $46.0 |
229.4 | 207.1 | ||||||
Other assets |
192.2 | 160.6 | ||||||
$ | 6,015.1 | $ | 5,760.0 | |||||
Liabilities and Stockholders Equity |
||||||||
Accounts payable |
$ | 212.9 | $ | 132.8 | ||||
Accrued liabilities |
363.4 | 375.6 | ||||||
Debt: |
||||||||
Recourse, net of unamortized discount of $102.7 and $111.1 |
456.3 | 450.3 | ||||||
Non-recourse: |
||||||||
Parent and wholly-owned subsidiaries |
1,602.3 | 1,453.5 | ||||||
TRIP Holdings |
913.3 | 1,003.9 | ||||||
2,971.9 | 2,907.7 | |||||||
Deferred income |
31.9 | 33.6 | ||||||
Deferred income taxes |
423.2 | 391.0 | ||||||
Other liabilities |
93.9 | 73.6 | ||||||
4,097.2 | 3,914.3 | |||||||
Stockholders equity: |
||||||||
Preferred stock 1.5 shares authorized and unissued |
| | ||||||
Common stock 200.0 shares authorized |
81.7 | 81.7 | ||||||
Capital in excess of par value |
626.1 | 606.1 | ||||||
Retained earnings |
1,265.8 | 1,200.5 | ||||||
Accumulated other comprehensive loss |
(114.3 | ) | (95.5 | ) | ||||
Treasury stock |
(24.7 | ) | (28.0 | ) | ||||
1,834.6 | 1,764.8 | |||||||
Noncontrolling interest |
83.3 | 80.9 | ||||||
1,917.9 | 1,845.7 | |||||||
$ | 6,015.1 | $ | 5,760.0 | |||||
3
Nine Months Ended | ||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
(in millions) | ||||||||
Operating activities: |
||||||||
Net income |
$ | 88.8 | $ | 56.9 | ||||
Adjustments to reconcile net income to net cash (required) provided by
operating activities: |
||||||||
Depreciation and amortization |
144.3 | 143.3 | ||||||
Stock-based compensation expense |
16.3 | 11.3 | ||||||
Excess tax benefits from stock-based compensation |
(0.3 | ) | 0.1 | |||||
Provision for deferred income taxes |
32.4 | 48.2 | ||||||
Gain on disposition of railcars from our lease fleet |
(11.0 | ) | (4.5 | ) | ||||
Gain on disposition of property, plant, equipment, and other assets |
(3.5 | ) | (7.7 | ) | ||||
Gain on disposition of flood-damaged property, plant, and equipment |
(0.6 | ) | (10.2 | ) | ||||
Other |
3.8 | 3.6 | ||||||
Changes in assets and liabilities: |
||||||||
(Increase) decrease in receivables |
(79.3 | ) | (81.8 | ) | ||||
(Increase) decrease in income tax receivable |
7.4 | (11.0 | ) | |||||
(Increase) decrease in inventories |
(208.8 | ) | (114.9 | ) | ||||
(Increase) decrease in other assets |
(37.7 | ) | 17.6 | |||||
Increase (decrease) in accounts payable |
78.6 | 58.1 | ||||||
Increase (decrease) in accrued liabilities |
(25.6 | ) | (40.1 | ) | ||||
Increase (decrease) in other liabilities |
15.9 | (21.7 | ) | |||||
Net cash provided by operating activities |
20.7 | 47.2 | ||||||
Investing activities: |
||||||||
(Increase)
decrease in short-term marketable securities |
158.0 | (150.0 | ) | |||||
Proceeds from sales of railcars from our lease fleet |
48.1 | 19.7 | ||||||
Proceeds from disposition of property, plant, equipment, and other assets |
6.2 | 37.3 | ||||||
Proceeds from disposition of flood-damaged property, plant, and equipment |
0.6 | 11.9 | ||||||
Capital expenditures leasing |
(236.0 | ) | (173.2 | ) | ||||
Capital expenditures manufacturing and other |
(38.8 | ) | (21.8 | ) | ||||
Capital expenditures replacement of flood-damaged property, plant,
and equipment |
(13.3 | ) | (9.7 | ) | ||||
Acquisitions, net of cash acquired |
(42.5 | ) | (46.9 | ) | ||||
Net cash required by investing activities |
(117.7 | ) | (332.7 | ) | ||||
Financing activities: |
||||||||
Proceeds from issuance of common stock, net |
1.8 | 1.2 | ||||||
Excess tax benefits from stock-based compensation |
0.3 | (0.1 | ) | |||||
Payments to retire debt assumed debt of Quixote |
| (40.0 | ) | |||||
Payments to retire debt other |
(1,068.5 | ) | (77.3 | ) | ||||
Proceeds from issuance of long-term debt |
1,124.5 | | ||||||
(Increase) decrease in restricted cash |
(22.3 | ) | (11.3 | ) | ||||
Purchase of additional interest in TRIP Holdings |
| (28.6 | ) | |||||
Dividends paid to common shareholders |
(20.0 | ) | (19.0 | ) | ||||
Net cash provided (required) by financing activities |
15.8 | (175.1 | ) | |||||
Net decrease in cash and cash equivalents |
(81.2 | ) | (460.6 | ) | ||||
Cash and cash equivalents at beginning of period |
354.0 | 611.8 | ||||||
Cash and cash equivalents at end of period |
$ | 272.8 | $ | 151.2 | ||||
4
Common Stock | Treasury Stock | |||||||||||||||||||||||||||||||||||||||
Capital in | Accumulated Other |
Trinity | Total | |||||||||||||||||||||||||||||||||||||
Excess of | Retained | Comprehensive | Stockholders | Noncontrolling | Stockholders | |||||||||||||||||||||||||||||||||||
Shares | Amount | Par Value | Earnings | Loss | Shares | Amount | Equity | Interest | Equity | |||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2010 |
81.7 | $ | 81.7 | $ | 606.1 | $ | 1,200.5 | $ | (95.5 | ) | (1.9 | ) | $ | (28.0 | ) | $ | 1,764.8 | $ | 80.9 | $ | 1,845.7 | |||||||||||||||||||
Net income |
| | | 86.1 | | | | 86.1 | 2.7 | 88.8 | ||||||||||||||||||||||||||||||
Other comprehensive income, net
of tax: |
||||||||||||||||||||||||||||||||||||||||
Currency translation adjustments |
| | | | (0.1 | ) | | | (0.1 | ) | | (0.1 | ) | |||||||||||||||||||||||||||
Change in unrealized loss on
derivative financial
instruments |
| | | | (3.2 | ) | | | (3.2 | ) | (0.3 | ) | (3.5 | ) | ||||||||||||||||||||||||||
Comprehensive net income |
82.8 | 2.4 | 85.2 | |||||||||||||||||||||||||||||||||||||
Cash dividends on common stock |
| | | (20.8 | ) | | | | (20.8 | ) | | (20.8 | ) | |||||||||||||||||||||||||||
Restricted shares issued, net |
| | 5.1 | | | 0.2 | 0.9 | 6.0 | | 6.0 | ||||||||||||||||||||||||||||||
Stock options exercised |
| | (0.6 | ) | | | 0.2 | 2.4 | 1.8 | | 1.8 | |||||||||||||||||||||||||||||
Reclassification of purchase of
additional interest in TRIP
Holdings |
| | 15.5 | | (15.5 | ) | | | | | | |||||||||||||||||||||||||||||
Balances at September 30, 2011 |
81.7 | $ | 81.7 | $ | 626.1 | $ | 1,265.8 | $ | (114.3 | ) | (1.5 | ) | $ | (24.7 | ) | $ | 1,834.6 | $ | 83.3 | $ | 1,917.9 | |||||||||||||||||||
5
Three Months Ended | Nine Months Ended | |||||||
September 30, 2011 | September 30, 2011 | |||||||
(in millions) | ||||||||
Acquisitions: |
||||||||
Purchase price |
$ | 32.8 | $ | 56.4 | ||||
Net cash paid |
$ | 27.2 | $ | 42.5 | ||||
Goodwill recorded |
$ | 22.3 | $ | 29.3 | ||||
Divestitures: |
||||||||
Proceeds |
$ | | $ | 8.3 | ||||
Gain recognized |
$ | | $ | 0.7 | ||||
Goodwill charged off |
$ | | $ | 1.0 |
6
Fair Value Measurement as of September 30, 2011 | ||||||||||||||||
(in millions) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: |
||||||||||||||||
Cash equivalents |
$ | 162.0 | $ | | $ | | $ | 162.0 | ||||||||
Restricted cash |
229.4 | | | 229.4 | ||||||||||||
Equity call agreement with TRIP Holdings equity investor (3) |
| | 0.7 | 0.7 | ||||||||||||
Total assets |
$ | 391.4 | $ | | $ | 0.7 | $ | 392.1 | ||||||||
Liabilities: |
||||||||||||||||
Interest rate hedges (1) |
||||||||||||||||
Wholly-owned subsidiary |
$ | | $ | 52.4 | $ | | $ | 52.4 | ||||||||
TRIP Holdings |
| 4.7 | | 4.7 | ||||||||||||
Equity put agreement with TRIP Holdings equity investor (2) |
| | 3.1 | 3.1 | ||||||||||||
Total liabilities |
$ | | $ | 57.1 | $ | 3.1 | $ | 60.2 | ||||||||
Fair Value Measurement as of December 31, 2010 | ||||||||||||||||
(in millions) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: |
||||||||||||||||
Cash equivalents |
$ | 286.0 | $ | | $ | | $ | 286.0 | ||||||||
Short-term marketable securities |
158.0 | | | 158.0 | ||||||||||||
Restricted cash |
207.1 | | | 207.1 | ||||||||||||
Fuel derivative instruments (3) |
| 0.1 | | 0.1 | ||||||||||||
Total assets |
$ | 651.1 | $ | 0.1 | $ | | $ | 651.2 | ||||||||
Liabilities: |
||||||||||||||||
Interest rate hedges (1) |
||||||||||||||||
Wholly-owned subsidiary |
$ | | $ | 45.7 | $ | | $ | 45.7 | ||||||||
TRIP Holdings |
| 48.3 | | 48.3 | ||||||||||||
Total liabilities |
$ | | $ | 94.0 | $ | | $ | 94.0 | ||||||||
(1) | Included in accrued liabilities on the consolidated balance sheet. | |
(2) | Included in other liabilities on the consolidated balance sheet. | |
(3) | Included in other assets on the consolidated balance sheet. |
September 30, 2011 | December 31, 2010 | |||||||||||||||
Carrying Value |
Estimated Fair Value |
Carrying Value |
Estimated Fair Value |
|||||||||||||
(in millions) | ||||||||||||||||
Recourse: |
||||||||||||||||
Convertible subordinated notes |
$ | 450.0 | $ | 416.3 | $ | 450.0 | $ | 448.3 | ||||||||
Less: unamortized discount |
(102.7 | ) | (111.1 | ) | ||||||||||||
347.3 | 338.9 | |||||||||||||||
Capital lease obligations |
49.2 | 49.2 | 51.2 | 51.2 | ||||||||||||
Term loan |
55.4 | 56.4 | 57.4 | 54.2 | ||||||||||||
Other |
4.4 | 4.4 | 2.8 | 2.8 | ||||||||||||
456.3 | 526.3 | 450.3 | 556.5 | |||||||||||||
Non-recourse: |
||||||||||||||||
2006 secured railcar equipment notes |
271.7 | 281.2 | 283.2 | 302.8 | ||||||||||||
Promissory notes |
471.5 | 456.4 | 493.8 | 482.2 | ||||||||||||
2009 secured railcar equipment notes |
220.9 | 231.9 | 229.2 | 256.1 | ||||||||||||
2010 secured railcar equipment notes |
357.5 | 335.8 | 367.1 | 345.5 | ||||||||||||
TILC warehouse facility |
280.7 | 280.7 | 80.2 | 80.2 | ||||||||||||
TRIP Holdings senior secured notes |
63.0 | 63.0 | | | ||||||||||||
TRIP Master Funding secured railcar
equipment notes |
850.3 | 844.9 | | | ||||||||||||
TRIP Holdings warehouse loan |
| | 1,003.9 | 994.0 | ||||||||||||
2,515.6 | 2,493.9 | 2,457.4 | 2,460.8 | |||||||||||||
Total |
$ | 2,971.9 | $ | 3,020.2 | $ | 2,907.7 | $ | 3,017.3 | ||||||||
7
8
Revenues | Operating | |||||||||||||||
Profit | ||||||||||||||||
External | Intersegment | Total | (Loss) | |||||||||||||
(in millions) | ||||||||||||||||
Rail Group |
$ | 227.7 | $ | 93.2 | $ | 320.9 | $ | 18.2 | ||||||||
Construction Products Group |
161.1 | 3.7 | 164.8 | 17.8 | ||||||||||||
Inland Barge Group |
143.2 | | 143.2 | 26.0 | ||||||||||||
Energy Equipment Group |
107.3 | 4.3 | 111.6 | (1.9 | ) | |||||||||||
Railcar Leasing and Management
Services Group |
153.1 | | 153.1 | 64.2 | ||||||||||||
All Other |
4.4 | 13.6 | 18.0 | (0.3 | ) | |||||||||||
Corporate |
| | | (11.5 | ) | |||||||||||
Eliminations Lease subsidiary |
| (87.9 | ) | (87.9 | ) | (8.1 | ) | |||||||||
Eliminations Other |
| (26.9 | ) | (26.9 | ) | 1.0 | ||||||||||
Consolidated Total |
$ | 796.8 | $ | | $ | 796.8 | $ | 105.4 | ||||||||
Revenues | Operating | |||||||||||||||
Profit | ||||||||||||||||
External | Intersegment | Total | (Loss) | |||||||||||||
(in millions) | ||||||||||||||||
Rail Group |
$ | 57.3 | $ | 73.7 | $ | 131.0 | $ | 3.3 | ||||||||
Construction Products Group |
155.7 | 4.7 | 160.4 | 20.3 | ||||||||||||
Inland Barge Group |
98.9 | | 98.9 | 22.4 | ||||||||||||
Energy Equipment Group |
103.0 | 3.6 | 106.6 | 6.0 | ||||||||||||
Railcar Leasing and Management
Services Group |
122.1 | | 122.1 | 52.9 | ||||||||||||
All Other |
3.0 | 9.4 | 12.4 | (1.3 | ) | |||||||||||
Corporate |
| | | (9.6 | ) | |||||||||||
Eliminations Lease subsidiary |
| (69.6 | ) | (69.6 | ) | (0.9 | ) | |||||||||
Eliminations Other |
| (21.8 | ) | (21.8 | ) | (1.2 | ) | |||||||||
Consolidated Total |
$ | 540.0 | $ | | $ | 540.0 | $ | 91.9 | ||||||||
Revenues | Operating | |||||||||||||||
Profit | ||||||||||||||||
External | Intersegment | Total | (Loss) | |||||||||||||
(in millions) | ||||||||||||||||
Rail Group |
$ | 556.0 | $ | 265.4 | $ | 821.4 | $ | 42.9 | ||||||||
Construction Products Group |
439.2 | 8.5 | 447.7 | 42.2 | ||||||||||||
Inland Barge Group |
398.9 | | 398.9 | 66.8 | ||||||||||||
Energy Equipment Group |
335.6 | 12.2 | 347.8 | 9.8 | ||||||||||||
Railcar Leasing and Management
Services Group |
413.3 | | 413.3 | 178.6 | ||||||||||||
All Other |
8.5 | 36.9 | 45.4 | (0.8 | ) | |||||||||||
Corporate |
| | | (30.6 | ) | |||||||||||
Eliminations Lease subsidiary |
| (252.8 | ) | (252.8 | ) | (23.3 | ) | |||||||||
Eliminations Other |
| (70.2 | ) | (70.2 | ) | 0.7 | ||||||||||
Consolidated Total |
$ | 2,151.5 | $ | | $ | 2,151.5 | $ | 286.3 | ||||||||
9
Revenues | Operating | |||||||||||||||
Profit | ||||||||||||||||
External | Intersegment | Total | (Loss) | |||||||||||||
(in millions) | ||||||||||||||||
Rail Group |
$ | 131.6 | $ | 185.9 | $ | 317.5 | $ | (7.3 | ) | |||||||
Construction Products Group |
433.0 | 16.7 | 449.7 | 40.7 | ||||||||||||
Inland Barge Group |
295.8 | | 295.8 | 52.2 | ||||||||||||
Energy Equipment Group |
304.8 | 7.2 | 312.0 | 29.9 | ||||||||||||
Railcar Leasing and Management
Services Group |
362.9 | | 362.9 | 150.3 | ||||||||||||
All Other |
9.0 | 25.5 | 34.5 | (6.0 | ) | |||||||||||
Corporate |
| | | (28.6 | ) | |||||||||||
Eliminations Lease subsidiary |
| (173.5 | ) | (173.5 | ) | (6.4 | ) | |||||||||
Eliminations Other |
| (61.8 | ) | (61.8 | ) | (2.0 | ) | |||||||||
Consolidated Total |
$ | 1,537.1 | $ | | $ | 1,537.1 | $ | 222.8 | ||||||||
September 30, 2011 | ||||||||||||||||
Leasing Group | ||||||||||||||||
Wholly- Owned |
TRIP | Manufacturing/ | ||||||||||||||
Subsidiaries | Holdings | Corporate | Total | |||||||||||||
(in millions, unaudited) | ||||||||||||||||
Cash, cash equivalents, and short-term marketable
securities |
$ | 4.2 | $ | | $ | 268.6 | $ | 272.8 | ||||||||
Property, plant, and equipment, net |
$ | 3,104.5 | $ | 1,157.9 | $ | 510.8 | $ | 4,773.2 | ||||||||
Net deferred profit on railcars sold to the Leasing Group |
(351.5 | ) | (190.7 | ) | | (542.2 | ) | |||||||||
$ | 2,753.0 | $ | 967.2 | $ | 510.8 | $ | 4,231.0 | |||||||||
Restricted cash |
$ | 167.9 | $ | 61.5 | $ | | $ | 229.4 | ||||||||
Debt: |
||||||||||||||||
Recourse |
$ | 104.6 | $ | | $ | 454.4 | $ | 559.0 | ||||||||
Less: unamortized discount |
| | (102.7 | ) | (102.7 | ) | ||||||||||
104.6 | | 351.7 | 456.3 | |||||||||||||
Non-recourse |
1,602.3 | 1,025.3 | | 2,627.6 | ||||||||||||
Less: non-recourse debt owned by Trinity |
| (112.0 | ) | | (112.0 | ) | ||||||||||
Total debt |
$ | 1,706.9 | $ | 913.3 | $ | 351.7 | $ | 2,971.9 |
December 31, 2010 | ||||||||||||||||
Leasing Group | ||||||||||||||||
Wholly- Owned |
TRIP | Manufacturing/ | ||||||||||||||
Subsidiaries | Holdings | Corporate | Total | |||||||||||||
(in millions) | ||||||||||||||||
Cash, cash equivalents, and short-term marketable securities |
$ | 3.8 | $ | | $ | 508.2 | $ | 512.0 | ||||||||
Property, plant, and equipment, net |
$ | 2,965.4 | $ | 1,191.8 | $ | 491.4 | $ | 4,648.6 | ||||||||
Net deferred profit on railcars sold to the Leasing Group |
(340.4 | ) | (196.2 | ) | | (536.6 | ) | |||||||||
$ | 2,625.0 | $ | 995.6 | $ | 491.4 | $ | 4,112.0 | |||||||||
Restricted cash |
$ | 161.1 | $ | 46.0 | $ | | $ | 207.1 | ||||||||
Debt: |
||||||||||||||||
Recourse |
$ | 108.6 | $ | | $ | 452.8 | $ | 561.4 | ||||||||
Less: unamortized discount |
| | (111.1 | ) | (111.1 | ) | ||||||||||
108.6 | | 341.7 | 450.3 | |||||||||||||
Non-recourse |
1,453.5 | 1,003.9 | | 2,457.4 | ||||||||||||
Total debt |
$ | 1,562.1 | $ | 1,003.9 | $ | 341.7 | $ | 2,907.7 |
10
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2011 | 2010 | Percent | 2011 | 2010 | Percent | |||||||||||||||||||
($ in millions) | Change | ($ in millions) | Change | |||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Wholly owned subsidiaries: |
||||||||||||||||||||||||
Leasing and management |
$ | 94.6 | $ | 86.1 | 9.9 | % | $ | 277.8 | $ | 256.2 | 8.4 | % | ||||||||||||
Sales of cars from the lease fleet |
28.9 | 7.2 | (1) | 39.6 | 18.8 | (1) | ||||||||||||||||||
123.5 | 93.3 | 32.4 | 317.4 | 275.0 | 15.4 | |||||||||||||||||||
TRIP Holdings: |
||||||||||||||||||||||||
Leasing and management |
29.2 | 28.8 | 1.4 | 87.4 | 87.0 | 0.5 | ||||||||||||||||||
Sales of cars from the lease fleet |
0.4 | | (1) | 8.5 | 0.9 | (1) | ||||||||||||||||||
29.6 | 28.8 | 2.8 | 95.9 | 87.9 | 9.1 | |||||||||||||||||||
Total revenues |
$ | 153.1 | $ | 122.1 | 25.4 | $ | 413.3 | $ | 362.9 | 13.9 | ||||||||||||||
Operating Profit: |
||||||||||||||||||||||||
Wholly owned subsidiaries: |
||||||||||||||||||||||||
Leasing and management |
$ | 40.3 | $ | 34.3 | $ | 116.3 | $ | 94.9 | ||||||||||||||||
Sales of cars from the lease fleet |
6.5 | 2.3 | 10.9 | 4.5 | ||||||||||||||||||||
46.8 | 36.6 | 127.2 | 99.4 | |||||||||||||||||||||
TRIP Holdings: |
||||||||||||||||||||||||
Leasing and management |
17.4 | 16.3 | 51.3 | 50.9 | ||||||||||||||||||||
Sales of cars from the lease fleet |
| | 0.1 | | ||||||||||||||||||||
17.4 | 16.3 | 51.4 | 50.9 | |||||||||||||||||||||
Total operating profit |
$ | 64.2 | $ | 52.9 | $ | 178.6 | $ | 150.3 | ||||||||||||||||
Operating profit margin: |
||||||||||||||||||||||||
Leasing and management |
46.6 | % | 44.0 | % | 45.9 | % | 42.5 | % | ||||||||||||||||
Sales of cars from the lease fleet |
22.2 | 31.9 | 22.9 | 22.8 | ||||||||||||||||||||
Total operating profit margin |
41.9 | 43.3 | 43.2 | 41.4 | ||||||||||||||||||||
Interest and rent expense(2): |
||||||||||||||||||||||||
Rent expense |
$ | 12.1 | $ | 12.2 | $ | 36.4 | $ | 36.5 | ||||||||||||||||
Interest expense |
||||||||||||||||||||||||
Wholly-owned subsidiaries |
$ | 24.8 | $ | 21.6 | $ | 75.4 | $ | 67.2 | ||||||||||||||||
TRIP Holdings: |
||||||||||||||||||||||||
External |
15.3 | 11.7 | 37.6 | 35.3 | ||||||||||||||||||||
Intercompany |
3.2 | | 3.2 | | ||||||||||||||||||||
18.5 | $ | 11.7 | 40.8 | $ | 35.3 | |||||||||||||||||||
Total interest expense |
$ | 43.3 | $ | 33.3 | $ | 116.2 | $ | 102.5 |
(1) not meaningful | ||
(2) Rent expense is a component of operating profit. Interest expense is not a component of operating profit and includes the effect of hedges. Intercompany interest expense arises from Trinitys ownership of a portion of TRIP Holdings Senior Secured Notes and is eliminated in consolidation. See Note 11 Debt. |
Remaining three |
||||||||||||||||||||||||||||
months | ||||||||||||||||||||||||||||
of 2011 | 2012 | 2013 | 2014 | 2015 | Thereafter | Total | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Wholly-owned subsidiaries |
$ | 66.5 | $ | 239.9 | $ | 191.8 | $ | 141.6 | $ | 108.9 | $ | 245.8 | $ | 994.5 | ||||||||||||||
TRIP Holdings |
26.4 | 91.5 | 60.8 | 40.2 | 33.3 | 83.3 | 335.5 | |||||||||||||||||||||
$ | 92.9 | $ | 331.4 | $ | 252.6 | $ | 181.8 | $ | 142.2 | $ | 329.1 | $ | 1,330.0 | |||||||||||||||
11
Remaining | ||||||||||||||||||||||||||||
three months of 2011 |
2012 | 2013 | 2014 | 2015 | Thereafter | Total | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Future
operating lease
obligations of
Trusts railcars |
$ | 10.6 | $ | 44.5 | $ | 45.7 | $ | 44.9 | $ | 43.2 | $ | 382.0 | $ | 570.9 | ||||||||||||||
Future contractual
minimum rental
revenues of Trusts
railcars |
$ | 15.2 | $ | 53.2 | $ | 37.5 | $ | 23.5 | $ | 17.7 | $ | 33.9 | $ | 181.0 |
Remaining | ||||||||||||||||||||||||||||
three months of 2011 |
2012 | 2013 | 2014 | 2015 | Thereafter | Total | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Future operating lease obligations |
$ | 1.4 | $ | 5.6 | $ | 5.3 | $ | 5.2 | $ | 5.2 | $ | 16.1 | $ | 38.8 | ||||||||||||||
Future contractual minimum rental
revenues |
$ | 1.4 | $ | 5.2 | $ | 4.2 | $ | 3.7 | $ | 2.8 | $ | 7.0 | $ | 24.3 |
12
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(in millions) | ||||||||
Capital contributions |
$ | 47.3 | $ | 47.3 | ||||
Equity purchased from investors |
44.8 | 44.8 | ||||||
92.1 | 92.1 | |||||||
Equity in earnings |
11.2 | 7.5 | ||||||
Equity in unrealized losses on
derivative financial instruments |
(1.9 | ) | (1.4 | ) | ||||
Distributions |
(7.0 | ) | (7.0 | ) | ||||
Deferred broker fees |
(0.6 | ) | (0.8 | ) | ||||
$ | 93.8 | $ | 90.4 | |||||
Included in accompanying balance sheet | ||||||||||||||||||||
at September 30, 2011 | ||||||||||||||||||||
AOCL | ||||||||||||||||||||
Notional | Interest | loss/ | Noncontrolling | |||||||||||||||||
Amount | Rate(1) | Liability | (income) | Interest | ||||||||||||||||
(in millions, except %) | ||||||||||||||||||||
Interest rate locks: |
||||||||||||||||||||
2005-2006 |
$ | 200.0 | 4.87 | % | | $ | (2.4 | ) | | |||||||||||
2006-2007 |
$ | 370.0 | 5.34 | % | | $ | 11.4 | | ||||||||||||
TRIP Holdings(2) |
$ | 788.5 | 3.60 | % | | $ | 24.2 | $ | 18.2 | |||||||||||
Interest rate swaps: |
||||||||||||||||||||
TRIP Rail Master Funding
secured railcar equipment
notes |
$ | 92.3 | 2.62 | % | $ | 4.7 | $ | 2.6 | $ | 2.0 | ||||||||||
2008 debt issuance |
$ | 482.1 | 4.13 | % | $ | 52.4 | $ | 50.9 | |
(1) | Weighted average fixed interest rate | |
(2) | Previously classified with interest rate swaps |
13
Effect on interest expenseincrease/(decrease) | |||||||||||||||||||||
Expected effect | |||||||||||||||||||||
during next | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | twelve | |||||||||||||||||||
September 30, | September 30, | months(1) | |||||||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||
Interest rate locks: |
|||||||||||||||||||||
2005-2006 |
$ | (0.1 | ) | $ | (0.1 | ) | $ | (0.3 | ) | $ | (0.3 | ) | $ | (0.3 | ) | ||||||
2006-2007 |
$ | 0.9 | $ | 0.9 | $ | 2.7 | $ | 2.8 | $ | 3.4 | |||||||||||
TRIP Holdings(2) |
$ | 1.8 | $ | 7.2 | $ | 15.9 | $ | 22.0 | $ | 6.0 | |||||||||||
Interest rate swaps: |
|||||||||||||||||||||
TILC warehouse |
| $ | 0.1 | | $ | 0.5 | | ||||||||||||||
TRIP Rail Master Funding
secured railcar equipment
notes |
$ | 0.5 | $ | | $ | 0.5 | $ | | $ | 1.8 | |||||||||||
2008 debt issuance |
$ | 4.6 | $ | 4.5 | $ | 14.3 | $ | 15.2 | $ | 17.6 |
(1) | Based on fair value as of September 30, 2011 |
(2) | Previously classified with interest rate swaps |
Effect on operating income increase/(decrease) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Fuel hedges(1) |
||||||||||||||||||||
Effect of mark to market valuation |
$ | (0.2 | ) | $ | (0.0 | ) | $ | 0.0 | $ | (0.1 | ) | |||||||||
Settlements |
0.2 | (0.1 | ) | 0.3 | (0.1 | ) | ||||||||||||||
$ | | $ | (0.1 | ) | $ | 0.3 | $ | (0.2 | ) | |||||||||||
Foreign exchange hedges(2) |
$ | 0.6 | $ | (0.3 | ) | $ | 0.0 | $ | (0.6 | ) |
(1) | Included in cost of revenues in the accompanying consolidated statement of operations | |
(2) | Included in other, net in the accompanying consolidated statement of operations |
14
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(as reported) | ||||||||
(in millions) | ||||||||
Manufacturing/Corporate: |
||||||||
Land |
$ | 40.8 | $ | 40.9 | ||||
Buildings and improvements |
414.2 | 418.4 | ||||||
Machinery and other |
750.3 | 699.7 | ||||||
Construction in progress |
29.6 | 9.7 | ||||||
1,234.9 | 1,168.7 | |||||||
Less accumulated depreciation |
(724.1 | ) | (677.3 | ) | ||||
510.8 | 491.4 | |||||||
Leasing: |
||||||||
Wholly-owned subsidiaries: |
||||||||
Machinery and other |
9.2 | 38.2 | ||||||
Equipment on lease |
3,447.3 | 3,249.8 | ||||||
3,456.5 | 3,288.0 | |||||||
Less accumulated depreciation |
(352.0 | ) | (322.6 | ) | ||||
3,104.5 | 2,965.4 | |||||||
TRIP Holdings: |
||||||||
Equipment on lease |
1,273.5 | 1,282.1 | ||||||
Less accumulated depreciation |
(115.6 | ) | (90.3 | ) | ||||
1,157.9 | 1,191.8 | |||||||
Net deferred profit on railcars sold to the Leasing Group |
||||||||
Sold to wholly-owned subsidiaries |
(351.5 | ) | (340.4 | ) | ||||
Sold to TRIP Holdings |
(190.7 | ) | (196.2 | ) | ||||
$ | 4,231.0 | $ | 4,112.0 | |||||
15
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(as reported) | ||||||||
(in millions) | ||||||||
Rail Group |
$ | 122.5 | $ | 122.5 | ||||
Construction Products Group |
90.7 | 62.4 | ||||||
Energy Equipment Group |
10.9 | 10.9 | ||||||
Railcar Leasing and Management Services Group |
1.8 | 1.8 | ||||||
$ | 225.9 | $ | 197.6 | |||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in millions) | ||||||||||||||||
Beginning balance |
$ | 12.0 | $ | 18.6 | $ | 13.2 | $ | 19.6 | ||||||||
Warranty costs incurred |
(1.6 | ) | (1.0 | ) | (4.3 | ) | (3.2 | ) | ||||||||
Warranty originations
and revisions |
2.1 | 0.4 | 4.6 | 3.3 | ||||||||||||
Warranty expirations |
(0.9 | ) | (0.5 | ) | (1.9 | ) | (2.2 | ) | ||||||||
Ending balance |
$ | 11.6 | $ | 17.5 | $ | 11.6 | $ | 17.5 | ||||||||
16
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(as reported) | ||||||||
(in millions) | ||||||||
Manufacturing/Corporate Recourse: |
||||||||
Revolving credit facility |
$ | | $ | | ||||
Convertible subordinated notes |
450.0 | 450.0 | ||||||
Less: unamortized discount |
(102.7 | ) | (111.1 | ) | ||||
347.3 | 338.9 | |||||||
Other |
4.4 | 2.8 | ||||||
351.7 | 341.7 | |||||||
Leasing Recourse: |
||||||||
Capital lease obligations |
49.2 | 51.2 | ||||||
Term loan |
55.4 | 57.4 | ||||||
456.3 | 450.3 | |||||||
Leasing Non-recourse: |
||||||||
2006 secured railcar equipment notes |
271.7 | 283.2 | ||||||
Promissory notes |
471.5 | 493.8 | ||||||
2009 secured railcar equipment notes |
220.9 | 229.2 | ||||||
2010 secured railcar equipment notes |
357.5 | 367.1 | ||||||
TILC warehouse facility |
280.7 | 80.2 | ||||||
TRIP Holdings senior secured notes: |
||||||||
Total outstanding |
175.0 | | ||||||
Less: owned by Trinity |
(112.0 | ) | | |||||
63.0 | | |||||||
TRIP Master Funding secured railcar
equipment notes |
850.3 | | ||||||
TRIP warehouse loan |
| 1,003.9 | ||||||
2,515.6 | 2,457.4 | |||||||
Total debt |
$ | 2,971.9 | $ | 2,907.7 | ||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in millions) | ||||||||||||||||
Coupon rate interest |
$ | 4.4 | $ | 4.4 | $ | 13.1 | $ | 13.1 | ||||||||
Amortized debt discount |
2.9 | 2.6 | 8.4 | 7.7 | ||||||||||||
$ | 7.3 | $ | 7.0 | $ | 21.5 | $ | 20.8 | |||||||||
17
18
Remaining | ||||||||||||||||||||||||
three | ||||||||||||||||||||||||
months of | ||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | Thereafter | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Recourse: |
||||||||||||||||||||||||
Manufacturing/Corporate |
$ | 0.4 | $ | 1.2 | $ | 1.1 | $ | 1.1 | $ | 0.2 | $ | 450.4 | ||||||||||||
Leasing capital lease obligations (Note 5) |
0.7 | 2.8 | 2.9 | 3.1 | 3.3 | 36.4 | ||||||||||||||||||
Leasing term loan (Note 5) |
0.7 | 2.8 | 3.0 | 3.3 | 3.5 | 42.1 | ||||||||||||||||||
Non-recourse leasing (Note 5): |
||||||||||||||||||||||||
2006 secured railcar equipment notes |
3.3 | 13.5 | 15.1 | 16.9 | 18.6 | 204.3 | ||||||||||||||||||
Promissory notes |
6.4 | 26.8 | 29.1 | 25.9 | 22.4 | 360.9 | ||||||||||||||||||
2009 secured railcar equipment notes |
2.5 | 9.2 | 10.2 | 9.9 | 9.6 | 179.5 | ||||||||||||||||||
2010 secured railcar equipment notes |
3.1 | 12.8 | 14.6 | 14.0 | 15.3 | 297.7 | ||||||||||||||||||
TILC warehouse facility |
2.0 | 8.1 | 8.1 | 5.4 | | | ||||||||||||||||||
TRIP Holdings senior secured notes |
||||||||||||||||||||||||
Total outstanding |
| | | 175.0 | | | ||||||||||||||||||
Less: owned by Trinity |
| | | (112.0 | ) | | | |||||||||||||||||
63.0 | ||||||||||||||||||||||||
TRIP Master Funding secured railcar equipment
notes |
10.3 | 41.0 | 41.1 | 40.2 | 35.9 | 681.8 | ||||||||||||||||||
Facility termination payments: |
||||||||||||||||||||||||
TILC warehouse facility |
| | 85.3 | 171.8 | | | ||||||||||||||||||
Total principal payments |
$ | 29.4 | $ | 118.2 | $ | 210.5 | $ | 354.6 | $ | 108.8 | $ | 2,253.1 | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in millions) | ||||||||||||||||
Foreign currency exchange transactions |
$ | 3.0 | $ | 0.3 | $ | 3.1 | $ | 0.1 | ||||||||
Loss (gain) on equity investments |
(0.1 | ) | | (0.6 | ) | 1.7 | ||||||||||
Other |
2.4 | (0.1 | ) | 1.7 | (0.7 | ) | ||||||||||
Other, net |
$ | 5.3 | $ | 0.2 | $ | 4.2 | $ | 1.1 | ||||||||
19
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Statutory rate
|
35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | ||||||||
State taxes
|
3.2 | 1.2 | 2.8 | 2.1 | ||||||||||||
Tax settlements
|
0.0 | 11.6 | 0.0 | 6.5 | ||||||||||||
Changes in tax reserves
|
(0.9 | ) | (16.9 | ) | 0.3 | (12.7 | ) | |||||||||
Foreign tax adjustments
|
2.1 | (0.9 | ) | 0.3 | 0.4 | |||||||||||
Other, net
|
0.6 | 2.5 | 1.2 | 2.8 | ||||||||||||
Effective rate
|
40.0 | % | 32.5 | % | 39.6 | % | 34.1 | % | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
(in millions) | ||||||||
Beginning balance |
$ | 36.8 | $ | 40.1 | ||||
Additions for tax positions related to the current year |
2.9 | 2.6 | ||||||
Additions for tax positions of prior years |
15.1 | 6.0 | ||||||
Reductions for tax positions of prior years |
(0.1 | ) | (5.3 | ) | ||||
Settlements |
(3.5 | ) | (8.1 | ) | ||||
Expiration of statute of limitations |
(0.5 | ) | (0.5 | ) | ||||
Ending balance |
$ | 50.7 | $ | 34.8 | ||||
20
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in millions) | ||||||||||||||||
Service cost |
$ | 0.2 | $ | 0.2 | $ | 0.7 | $ | 0.7 | ||||||||
Interest |
4.9 | 4.4 | 14.7 | 14.2 | ||||||||||||
Expected return on plan assets |
(5.7 | ) | (5.0 | ) | (17.1 | ) | (15.0 | ) | ||||||||
Actuarial loss |
0.4 | 0.4 | 1.4 | 1.6 | ||||||||||||
Prior service cost |
0.1 | | 0.1 | | ||||||||||||
Profit sharing |
1.9 | 2.0 | 6.4 | 6.3 | ||||||||||||
Net expense |
$ | 1.8 | $ | 2.0 | $ | 6.2 | $ | 7.8 | ||||||||
21
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in millions) | ||||||||||||||||
Net income attributable to Trinity Industries, Inc. |
$ | 31.9 | $ | 29.7 | $ | 86.1 | $ | 50.1 | ||||||||
Other comprehensive income (loss): |
||||||||||||||||
Change in currency translation adjustment, net of tax benefit of
$0.0 |
| | (0.1 | ) | | |||||||||||
Change in unrealized loss on derivative financial instruments,
net of tax benefit of $(2.8), $(4.3), $(2.0), and $(11.6) |
(5.2 | ) | (7.6 | ) | (3.2 | ) | (23.5 | ) | ||||||||
Other changes, net of tax expense of $0.7 |
| | | 1.1 | ||||||||||||
Comprehensive net income attributable to Trinity Industries, Inc. |
$ | 26.7 | $ | 22.1 | $ | 82.8 | $ | 27.7 | ||||||||
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(as reported) | ||||||||
(in millions) | ||||||||
Currency translation adjustments, net of tax benefit of $(0.2) |
$ | (17.2 | ) | $ | (17.1 | ) | ||
Unrealized loss on derivative financial instruments, net of tax
benefit of $(31.7) and $(21.4) |
(55.0 | ) | (36.3 | ) | ||||
Funded status of pension liability, net of tax benefit of $(24.8) |
(42.1 | ) | (42.1 | ) | ||||
$ | (114.3 | ) | $ | (95.5 | ) | |||
22
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
September 30, 2011 | September 30, 2010 | |||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||
Income (Loss) |
Average Shares |
EPS | Income (Loss) |
Average Shares |
EPS | |||||||||||||||||||
Net income attributable to Trinity
Industries, Inc. |
$ | 31.9 | $ | 29.7 | ||||||||||||||||||||
Unvested restricted share participation |
(1.0 | ) | (1.0 | ) | ||||||||||||||||||||
Net income attributable to Trinity
Industries, Inc. basic |
30.9 | 77.7 | $ | 0.40 | 28.7 | 77.0 | $ | 0.37 | ||||||||||||||||
Effect of dilutive securities: |
||||||||||||||||||||||||
Stock options |
| 0.2 | | 0.1 | ||||||||||||||||||||
Net income attributable to Trinity
Industries, Inc. diluted |
$ | 30.9 | 77.9 | $ | 0.40 | $ | 28.7 | 77.1 | $ | 0.37 | ||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, 2011 | September 30, 2010 | |||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||
Income (Loss) |
Average Shares |
EPS | Income (Loss) |
Average Shares |
EPS | |||||||||||||||||||
Net income attributable to Trinity
Industries, Inc. |
$ | 86.1 | $ | 50.1 | ||||||||||||||||||||
Unvested restricted share participation |
(2.9 | ) | (1.7 | ) | ||||||||||||||||||||
Net income attributable to Trinity
Industries, Inc. basic |
83.2 | 77.4 | $ | 1.07 | 48.4 | 76.8 | $ | 0.63 | ||||||||||||||||
Effect of dilutive securities: |
||||||||||||||||||||||||
Stock options |
| 0.3 | | 0.1 | ||||||||||||||||||||
Net income attributable to Trinity
Industries, Inc. diluted |
$ | 83.2 | 77.7 | $ | 1.07 | $ | 48.4 | 76.9 | $ | 0.63 | ||||||||||||||
23
24
| Executive Summary |
||
| Results of Operations |
||
| Liquidity and Capital Resources |
||
| Contractual Obligations and Commercial Commitments |
||
| Forward-Looking Statements |
September 30, | September 30, | |||||||
2011 | 2010 | |||||||
(in millions) | ||||||||
Rail Group |
||||||||
External Customers |
$ | 1,939.0 | $ | 250.8 | ||||
Leasing Group |
431.7 | 137.6 | ||||||
Total |
$ | 2,370.7 | $ | 388.4 | ||||
Inland Barge |
$ | 564.4 | $ | 515.6 | ||||
Structural wind towers |
$ | 929.5 | $ | 1,000.0 |
25
26
Three Months Ended September 30, 2011 | Three Months Ended September 30, 2010 | |||||||||||||||||||||||||||
Revenues | Revenues | Percent | ||||||||||||||||||||||||||
External | Intersegment | Total | External | Intersegment | Total | Change | ||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||||
Rail Group |
$ | 227.7 | $ | 93.2 | $ | 320.9 | $ | 57.3 | $ | 73.7 | $ | 131.0 | 145.0 | % | ||||||||||||||
Construction Products Group |
161.1 | 3.7 | 164.8 | 155.7 | 4.7 | 160.4 | 2.7 | |||||||||||||||||||||
Inland Barge Group |
143.2 | | 143.2 | 98.9 | | 98.9 | 44.8 | |||||||||||||||||||||
Energy Equipment Group |
107.3 | 4.3 | 111.6 | 103.0 | 3.6 | 106.6 | 4.7 | |||||||||||||||||||||
Railcar Leasing and
Management Services Group |
153.1 | | 153.1 | 122.1 | | 122.1 | 25.4 | |||||||||||||||||||||
All Other |
4.4 | 13.6 | 18.0 | 3.0 | 9.4 | 12.4 | 45.2 | |||||||||||||||||||||
Eliminations lease subsidiary |
| (87.9 | ) | (87.9 | ) | | (69.6 | ) | (69.6 | ) | ||||||||||||||||||
Eliminations other |
| (26.9 | ) | (26.9 | ) | | (21.8 | ) | (21.8 | ) | ||||||||||||||||||
Consolidated Total |
$ | 796.8 | $ | | $ | 796.8 | $ | 540.0 | $ | | $ | 540.0 | 47.6 | |||||||||||||||
Nine Months Ended September 30, 2011 | Nine Months Ended September 30, 2010 | |||||||||||||||||||||||||||
Revenues | Revenues | Percent | ||||||||||||||||||||||||||
External | Intersegment | Total | External | Intersegment | Total | Change | ||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||||
Rail Group |
$ | 556.0 | $ | 265.4 | $ | 821.4 | $ | 131.6 | $ | 185.9 | $ | 317.5 | 158.7 | % | ||||||||||||||
Construction Products Group |
439.2 | 8.5 | 447.7 | 433.0 | 16.7 | 449.7 | (0.4 | ) | ||||||||||||||||||||
Inland Barge Group |
398.9 | | 398.9 | 295.8 | | 295.8 | 34.9 | |||||||||||||||||||||
Energy Equipment Group |
335.6 | 12.2 | 347.8 | 304.8 | 7.2 | 312.0 | 11.5 | |||||||||||||||||||||
Railcar Leasing and
Management Services Group |
413.3 | | 413.3 | 362.9 | | 362.9 | 13.9 | |||||||||||||||||||||
All Other |
8.5 | 36.9 | 45.4 | 9.0 | 25.5 | 34.5 | 31.6 | |||||||||||||||||||||
Eliminations lease subsidiary |
| (252.8 | ) | (252.8 | ) | | (173.5 | ) | (173.5 | ) | ||||||||||||||||||
Eliminations other |
| (70.2 | ) | (70.2 | ) | | (61.8 | ) | (61.8 | ) | ||||||||||||||||||
Consolidated Total |
$ | 2,151.5 | $ | | $ | 2,151.5 | $ | 1,537.1 | $ | | $ | 1,537.1 | 40.0 | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in millions) | ||||||||||||||||
Rail Group |
$ | 18.2 | $ | 3.3 | $ | 42.9 | $ | (7.3 | ) | |||||||
Construction Products Group |
17.8 | 20.3 | 42.2 | 40.7 | ||||||||||||
Inland Barge Group |
26.0 | 22.4 | 66.8 | 52.2 | ||||||||||||
Energy Equipment Group |
(1.9 | ) | 6.0 | 9.8 | 29.9 | |||||||||||
Railcar Leasing and Management Services Group |
64.2 | 52.9 | 178.6 | 150.3 | ||||||||||||
All Other |
(0.3 | ) | (1.3 | ) | (0.8 | ) | (6.0 | ) | ||||||||
Corporate |
(11.5 | ) | (9.6 | ) | (30.6 | ) | (28.6 | ) | ||||||||
Eliminations lease subsidiary |
(8.1 | ) | (0.9 | ) | (23.3 | ) | (6.4 | ) | ||||||||
Eliminations other |
1.0 | (1.2 | ) | 0.7 | (2.0 | ) | ||||||||||
Consolidated Total |
$ | 105.4 | $ | 91.9 | $ | 286.3 | $ | 222.8 | ||||||||
27
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Statutory rate |
35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | ||||||||
State taxes |
3.2 | 1.2 | 2.8 | 2.1 | ||||||||||||
Tax settlements |
0.0 | 11.6 | 0.0 | 6.5 | ||||||||||||
Changes in tax reserves |
(0.9 | ) | (16.9 | ) | 0.3 | (12.7 | ) | |||||||||
Foreign tax adjustments |
2.1 | (0.9 | ) | 0.3 | 0.4 | |||||||||||
Other, net |
0.6 | 2.5 | 1.2 | 2.8 | ||||||||||||
Effective rate |
40.0 | % | 32.5 | % | 39.6 | % | 34.1 | % | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2011 | 2010 | Percent | 2011 | 2010 | Percent | |||||||||||||||||||
($ in millions) | Change | ($ in millions) | Change | |||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Rail |
$ | 278.1 | $ | 97.6 | 184.9 | % | $ | 690.7 | $ | 223.7 | 208.8 | % | ||||||||||||
Components |
42.8 | 33.4 | 28.1 | 130.7 | 93.8 | 39.3 | ||||||||||||||||||
Total revenues |
$ | 320.9 | $ | 131.0 | 145.0 | $ | 821.4 | $ | 317.5 | 158.7 | ||||||||||||||
Operating profit (loss) |
$ | 18.2 | $ | 3.3 | $ | 42.9 | $ | (7.3 | ) | |||||||||||||||
Operating profit (loss) margin |
5.7 | % | 2.5 | % | 5.2 | % | (2.3 | )% |
As of September 30, | ||||||||
2011 | 2010 | |||||||
(in millions, except railcars) | ||||||||
External Customers |
$ | 1,939.0 | $ | 250.8 | ||||
Leasing Group |
431.7 | 137.6 | ||||||
Total |
$ | 2,370.7 | $ | 388.4 | ||||
Number of railcars |
27,885 | 4,860 |
28
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2011 | 2010 | Percent | 2011 | 2010 | Percent | |||||||||||||||||||
($ in millions) | Change | ($ in millions) | Change | |||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Concrete and Aggregates |
$ | 47.9 | $ | 70.3 | (31.9 | )% | $ | 143.5 | $ | 200.9 | (28.6 | )% | ||||||||||||
Highway Products |
107.2 | 87.0 | 23.2 | 284.4 | 243.2 | 16.9 | ||||||||||||||||||
Other |
9.7 | 3.1 | * | 19.8 | 5.6 | * | ||||||||||||||||||
Total revenues |
$ | 164.8 | $ | 160.4 | 2.7 | $ | 447.7 | $ | 449.7 | (0.4 | ) | |||||||||||||
Operating profit |
$ | 17.8 | $ | 20.3 | $ | 42.2 | $ | 40.7 | ||||||||||||||||
Operating profit margin |
10.8 | % | 12.7 | % | 9.4 | % | 9.1 | % |
*not meaningful |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2011 | 2010 | Percent | 2011 | 2010 | Percent | |||||||||||||||||||
($ in millions) | Change | ($ in millions) | Change | |||||||||||||||||||||
Revenues |
$ | 143.2 | $ | 98.9 | 44.8 | % | $ | 398.9 | $ | 295.8 | 34.9 | % | ||||||||||||
Operating profit |
$ | 26.0 | $ | 22.4 | $ | 66.8 | $ | 52.2 | ||||||||||||||||
Operating profit margin |
18.2 | % | 22.6 | % | 16.7 | % | 17.6 | % |
Impact
to operating profit as a result of the floods Benefit/(Cost) |
||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
($ in millions) | ||||||||||||||||
Tennessee flood May 2010 |
||||||||||||||||
Costs, net of insurance
advances related to damages and
lost productivity |
$ | | $ | (0.5 | ) | $ | | $ | (3.9 | ) | ||||||
Insurance proceeds |
2.5 | | 6.5 | | ||||||||||||
Gain on disposition of damaged
property, plant, and equipment |
0.6 | 10.2 | 0.6 | 10.2 | ||||||||||||
$ | 3.1 | $ | 9.7 | $ | 7.1 | $ | 6.3 | |||||||||
Missouri flood May 2011 |
||||||||||||||||
Costs, net of insurance
advances related to damages and
lost productivity |
$ | | $ | | $ | (8.4 | ) | $ | | |||||||
Combined net effect of both floods |
$ | 3.1 | $ | 9.7 | $ | (1.3 | ) | $ | 6.3 |
29
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2011 | 2010 | Percent | 2011 | 2010 | Percent | |||||||||||||||||||
($ in millions) | Change | ($ in millions) | Change | |||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Structural wind towers |
$ | 52.7 | $ | 65.2 | (19.2 | )% | $ | 188.5 | $ | 198.2 | (4.9 | )% | ||||||||||||
Other |
58.9 | 41.4 | 42.3 | 159.3 | 113.8 | 40.0 | ||||||||||||||||||
Total revenues |
$ | 111.6 | $ | 106.6 | 4.7 | $ | 347.8 | $ | 312.0 | 11.5 | ||||||||||||||
Operating profit (loss) |
$ | (1.9 | ) | $ | 6.0 | $ | 9.8 | $ | 29.9 | |||||||||||||||
Operating profit (loss) margin |
(1.7 | )% | 5.6 | % | 2.8 | % | 9.6 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2011 | 2010 | Percent | 2011 | 2010 | Percent | |||||||||||||||||||
($ in millions) | Change | ($ in millions) | Change | |||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Wholly owned subsidiaries: |
||||||||||||||||||||||||
Leasing and management |
$ | 94.6 | $ | 86.1 | 9.9 | % | $ | 277.8 | $ | 256.2 | 8.4 | % | ||||||||||||
Sales of cars from the lease fleet |
28.9 | 7.2 | * | 39.6 | 18.8 | * | ||||||||||||||||||
123.5 | 93.3 | 32.4 | 317.4 | 275.0 | 15.4 | |||||||||||||||||||
TRIP Holdings: |
||||||||||||||||||||||||
Leasing and management |
29.2 | 28.8 | 1.4 | 87.4 | 87.0 | 0.5 | ||||||||||||||||||
Sales of cars from the lease fleet |
0.4 | | * | 8.5 | 0.9 | * | ||||||||||||||||||
29.6 | 28.8 | 2.8 | 95.9 | 87.9 | 9.1 | |||||||||||||||||||
Total revenues |
$ | 153.1 | $ | 122.1 | 25.4 | $ | 413.3 | $ | 362.9 | 13.9 | ||||||||||||||
Operating Profit: |
||||||||||||||||||||||||
Wholly owned subsidiaries: |
||||||||||||||||||||||||
Leasing and management |
$ | 40.3 | $ | 34.3 | $ | 116.3 | $ | 94.9 | ||||||||||||||||
Sales of cars from the lease fleet |
6.5 | 2.3 | 10.9 | 4.5 | ||||||||||||||||||||
46.8 | 36.6 | 127.2 | 99.4 | |||||||||||||||||||||
TRIP Holdings: |
||||||||||||||||||||||||
Leasing and management |
17.4 | 16.3 | 51.3 | 50.9 | ||||||||||||||||||||
Sales of cars from the lease fleet |
| | 0.1 | | ||||||||||||||||||||
17.4 | 16.3 | 51.4 | 50.9 | |||||||||||||||||||||
Total operating profit |
$ | 64.2 | $ | 52.9 | $ | 178.6 | $ | 150.3 | ||||||||||||||||
Operating profit margin: |
||||||||||||||||||||||||
Leasing and management |
46.6 | % | 44.0 | % | 45.9 | % | 42.5 | % | ||||||||||||||||
Sales of cars from the lease fleet |
22.2 | 31.9 | 22.9 | 22.8 | ||||||||||||||||||||
Total operating profit margin |
41.9 | 43.3 | 43.2 | 41.4 | ||||||||||||||||||||
Fleet utilization: |
||||||||||||||||||||||||
Wholly owned subsidiaries |
99.4 | % | 98.9 | % | 99.4 | % | 98.9 | % | ||||||||||||||||
TRIP Holdings |
99.9 | % | 99.6 | % | 99.9 | % | 99.6 | % |
*not meaningful |
30
Average remaining | ||||||||||||
No. of cars | Average age | lease term | ||||||||||
Wholly-owned subsidiaries |
54,445 | 6.4 | 3.5 | |||||||||
TRIP Holdings |
14,600 | 4.1 | 3.3 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2011 | 2010 | Percent | 2011 | 2010 | Percent | |||||||||||||||||||
($ in millions) | Change | ($ in millions) | Change | |||||||||||||||||||||
Revenues. |
$ | 18.0 | $ | 12.4 | 45.2 | % | $ | 45.4 | $ | 34.5 | 31.6 | % | ||||||||||||
Operating loss |
$ | (0.3 | ) | $ | (1.3 | ) | $ | (0.8 | ) | $ | (6.0 | ) |
31
32
Included in accompanying balance sheet | ||||||||||||||||||||
at September 30, 2011 | ||||||||||||||||||||
AOCL | ||||||||||||||||||||
Notional | Interest | loss/ | Noncontrolling | |||||||||||||||||
Amount | Rate(1) | Liability | (income) | Interest | ||||||||||||||||
(in millions, except %) | ||||||||||||||||||||
Interest rate locks: |
||||||||||||||||||||
2005-2006 |
$ | 200.0 | 4.87 | % | | $ | (2.4 | ) | | |||||||||||
2006-2007 |
$ | 370.0 | 5.34 | % | | $ | 11.4 | | ||||||||||||
TRIP Holdings(2) |
$ | 788.5 | 3.60 | % | | $ | 24.2 | $ | 18.2 | |||||||||||
Interest rate swaps: |
||||||||||||||||||||
TRIP Rail Master Funding
secured railcar equipment
notes |
$ | 92.3 | 2.62 | % | $ | 4.7 | $ | 2.6 | $ | 2.0 | ||||||||||
2008 debt issuance |
$ | 482.1 | 4.13 | % | $ | 52.4 | $ | 50.9 | |
(1)Weighted average fixed interest rate |
||
(2)Previously classified with interest rate swaps |
Effect on interest expenseincrease/(decrease) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | Expected effect | ||||||||||||||||||
September 30, | September 30, | during next twelve | ||||||||||||||||||
2011 | 2010 | 2011 | 2010 | months(1) | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Interest rate locks: |
||||||||||||||||||||
2005-2006 |
$ | (0.1 | ) | $ | (0.1 | ) | $ | (0.3 | ) | $ | (0.3 | ) | $ | (0.3 | ) | |||||
2006-2007 |
$ | 0.9 | $ | 0.9 | $ | 2.7 | $ | 2.8 | $ | 3.4 | ||||||||||
TRIP Holdings(2) |
$ | 1.8 | $ | 7.2 | $ | 15.9 | $ | 22.0 | $ | 6.0 | ||||||||||
Interest rate swaps: |
||||||||||||||||||||
TILC warehouse |
| $ | 0.1 | | $ | 0.5 | | |||||||||||||
TRIP Rail Master Funding
secured railcar equipment
notes |
$ | 0.5 | $ | | $ | 0.5 | $ | | $ | 1.8 | ||||||||||
2008 debt issuance |
$ | 4.6 | $ | 4.5 | $ | 14.3 | $ | 15.2 | $ | 17.6 |
(1)Based on fair value as of September 30, 2011 |
||
(2)Previously classified with interest rate swaps |
33
Effect on operating incomeincrease/(decrease) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Fuel hedges(1) |
||||||||||||||||||||
Effect of mark to market valuation |
$ | (0.2 | ) | $ | (0.0 | ) | $ | 0.0 | $ | (0.1 | ) | |||||||||
Settlements |
0.2 | (0.1 | ) | 0.3 | (0.1 | ) | ||||||||||||||
$ | | $ | (0.1 | ) | $ | 0.3 | $ | (0.2 | ) | |||||||||||
Foreign exchange hedges(2) |
$ | 0.6 | $ | (0.3 | ) | $ | 0.0 | $ | (0.6 | ) |
(1)Included in cost of revenues in the accompanying consolidated statement of operations |
||
(2)Included in other, net in the accompanying consolidated statement of operations |
34
| market conditions and demand for our business products and services; |
| the cyclical nature of industries in which we compete; |
| variations in weather in areas where our construction products are sold, used, or
installed; |
| naturally-occurring events and disasters causing disruption to our manufacturing, product
deliveries, and production capacity, thereby giving rise to an increase in expenses, loss of
revenue, and property losses; |
| the timing of introduction of new products; |
| the timing and delivery of customer orders or a breach of customer contracts; |
| the credit worthiness of customers and their access to capital; |
| product price changes; |
| changes in mix of products sold; |
| the extent of utilization of manufacturing capacity; |
| availability and costs of steel, component parts, supplies, and other raw materials; |
| competition and other competitive factors; |
| changing technologies; |
| surcharges and other fees added to fixed pricing agreements for steel, component parts,
supplies and other raw materials; |
| interest rates and capital costs; |
| counter-party risks for financial instruments; |
| long-term funding of our operations; |
| taxes; |
| the stability of the governments and political and business conditions in certain foreign
countries, particularly Mexico; |
| changes in import and export quotas and regulations; |
| business conditions in emerging economies; |
| costs and results of litigation; and |
| legal, regulatory, and environmental issues. |
35
36
Maximum | ||||||||||||||||
Total | Number (or | |||||||||||||||
Number of | Approximate | |||||||||||||||
Shares (or | Dollar Value) of | |||||||||||||||
Units) | Shares (or | |||||||||||||||
Purchased | Units) | |||||||||||||||
as | that May Yet | |||||||||||||||
Part of | Be | |||||||||||||||
Average | Publicly | Purchased | ||||||||||||||
Number of | Price | Announced | Under the | |||||||||||||
Period | Shares Purchased(1) |
Paid per Share(1) |
Plans or Programs(2) |
Plans or Programs(2) |
||||||||||||
July 1, 2011 through July 31, 2011 |
| $ | | | $ | 200,000,000 | ||||||||||
August 1, 2011 through August 31, 2011 |
122 | $ | 22.41 | | $ | 200,000,000 | ||||||||||
September 1, 2011 through September 30, 2011 |
11,167 | $ | 24.79 | | $ | 200,000,000 | ||||||||||
Total |
11,289 | $ | 24.77 | | $ | 200,000,000 | ||||||||||
(1) | These columns include the surrender to the Company of 11,289 shares of common stock to
satisfy tax withholding obligations in connection with the vesting of restricted stock
issued to employees. |
|
(2) | On December 9, 2010, the Companys Board of Directors authorized a new $200 million share
repurchase program, effective January 1, 2011. This program replaced the Companys previous
share repurchase program and expires December 31, 2012. No shares were repurchased under
this program during the three months ended September 30, 2011. |
37
Pending | ||||||||||||||||||||||||||||||||||||
Total no. of | Total no. | legal action | ||||||||||||||||||||||||||||||||||
Total no. of | unwarrantable | of | Total dollar | Received | before the | |||||||||||||||||||||||||||||||
significant | compliance | Total no. | imminent | value of | written | Federal | ||||||||||||||||||||||||||||||
and | Total no. | failure | of flagrant | danger | proposed | Total no. | notice | Mine Safety | ||||||||||||||||||||||||||||
substantial | of orders | citations and | violations | orders | assessments | of | under | and Health | ||||||||||||||||||||||||||||
violations | under | orders under | under | under | from | mining | Mine Act | Review | ||||||||||||||||||||||||||||
Quarry Site | under Mine | Mine Act | Mine Act | Mine Act | Mine Act | MSHA (in | related | §104(e) | Commission | |||||||||||||||||||||||||||
(MSHA ID) | Act §104 | §104(b) | §104(d) | §110(b)(2) | §107(a) | thousands) | fatalities | (yes/no)? | (yes/no)? | |||||||||||||||||||||||||||
Rye
(4102547) |
0 | 0 | 0 | 0 | 0 | $ | 0.000 | 0 | No | No | ||||||||||||||||||||||||||
Belton (4101043) |
0 | 0 | 0 | 0 | 0 | $ | 0.000 | 0 | No | No | ||||||||||||||||||||||||||
Malloy Bridge
(4102946) |
0 | 0 | 0 | 0 | 0 | $ | 0.000 | 0 | No | No | ||||||||||||||||||||||||||
Cottonwood (4104553) |
0 | 0 | 0 | 0 | 0 | $ | 0.000 | 0 | No | No | ||||||||||||||||||||||||||
Wills Point
(4104113) |
0 | 0 | 0 | 0 | 0 | $ | 0.000 | 0 | No | No | ||||||||||||||||||||||||||
Waco-Angerman
(4103492) |
0 | 0 | 0 | 0 | 0 | $ | 0.000 | 0 | No | No | ||||||||||||||||||||||||||
Indian Village
(1600348) |
0 | 0 | 0 | 0 | 0 | $ | 0.100 | 0 | No | No | ||||||||||||||||||||||||||
Alvord
(4103689)(1) |
0 | 0 | 0 | 0 | 0 | $ | 0.000 | 0 | No | No | ||||||||||||||||||||||||||
Lockesburg (0301681) |
0 | 0 | 0 | 0 | 0 | $ | 0.000 | 0 | No | No | ||||||||||||||||||||||||||
Kopperl (4104450) |
0 | 0 | 0 | 0 | 0 | $ | 0.000 | 0 | No | No | ||||||||||||||||||||||||||
Wills Point II
(4104071) |
0 | 0 | 0 | 0 | 0 | $ | 0.000 | 0 | No | No | ||||||||||||||||||||||||||
Beckett
(4101849) |
0 | 0 | 0 | 0 | 0 | $ | 0.000 | 0 | No | No | ||||||||||||||||||||||||||
Paradise
(4103253) |
0 | 0 | 0 | 0 | 0 | $ | 0.000 | 0 | No | No | ||||||||||||||||||||||||||
Anacoco
(1600543) |
0 | 0 | 0 | 0 | 0 | $ | 0.100 | 0 | No | No |
(1) | Facility ceased operations as of September 30, 2011 but remains open for product sales. |
38
Exhibit Number | Description | |
10.1
|
Purchase and Contribution Agreement dated July 6, 2011, among TRIP Rail Leasing, LLC,
Trinity Industries Leasing Company, TRIP Rail Master Funding LLC (incorporated by reference
to Exhibit 10.3 to our Form 10-Q for the quarterly period ended June 30, 2011). |
|
10.2
|
Master Indenture dated July 6, 2011, among TRIP Rail Master Funding LLC and Wilmington
Trust Company, as indenture trustee (incorporated by reference to Exhibit 10.4 to our Form
10-Q for the quarterly period ended June 30, 2011). |
|
31.1
|
Rule 13a-15(e) and 15d-15(e) Certification of Chief Executive Officer (filed herewith). |
|
31.2
|
Rule 13a-15(e) and 15d-15(e) Certification of Chief Financial Officer (filed herewith). |
|
32.1
|
Certification pursuant to 18 U.S.C., Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). |
|
32.2
|
Certification pursuant to 18 U.S.C., Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). |
|
101.INS
|
XBRL Instance Document (filed electronically herewith)* |
|
101.SCH
|
XBRL Taxonomy Extension Schema Document (filed electronically herewith)* |
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document (filed electronically
herewith)* |
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document (filed electronically
herewith)* |
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document (filed electronically
herewith)* |
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document (filed electronically
herewith)* |
*Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed
not filed or part of a registration statement or prospectus for purposes of Sections 11 or
12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and
otherwise are not subject to liability. |
39
TRINITY INDUSTRIES, INC. Registrant |
By /s/ JAMES E. PERRY | |||
James E. Perry | ||||
Senior Vice President and Chief Financial Officer October 26, 2011 |
40
Exhibit Number | Description | |
10.1
|
Purchase and Contribution Agreement dated July 6, 2011, among TRIP Rail Leasing, LLC,
Trinity Industries Leasing Company, TRIP Rail Master Funding LLC (incorporated by reference
to Exhibit 10.3 to our Form 10-Q for the quarterly period ended June 30, 2011). |
|
10.2
|
Master Indenture dated July 6, 2011, among TRIP Rail Master Funding LLC and Wilmington
Trust Company, as indenture trustee (incorporated by reference to Exhibit 10.4 to our Form
10-Q for the quarterly period ended June 30, 2011). |
|
31.1
|
Rule 13a-15(e) and 15d-15(e) Certification of Chief Executive Officer (filed herewith). |
|
31.2
|
Rule 13a-15(e) and 15d-15(e) Certification of Chief Financial Officer (filed herewith). |
|
32.1
|
Certification pursuant to 18 U.S.C., Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). |
|
32.2
|
Certification pursuant to 18 U.S.C., Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). |
|
101.INS
|
XBRL Instance Document (filed electronically herewith)* |
|
101.SCH
|
XBRL Taxonomy Extension Schema Document (filed electronically herewith)* |
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document (filed electronically
herewith)* |
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document (filed electronically
herewith)* |
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document (filed electronically
herewith)* |
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document (filed electronically
herewith)* |
*Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed
not filed or part of a registration statement or prospectus for purposes of Sections 11 or
12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and
otherwise are not subject to liability. |
41
1. | I have reviewed this quarterly report on Form 10-Q of Trinity Industries, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this
report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under our supervision, to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this report is being
prepared; |
||
b) | Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted
accounting principles; |
||
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and
presented in this report our conclusion about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this report based on such
evaluation; and |
||
d) | Disclosed in this report any change in the registrants internal control over financial
reporting that occurred during the registrants most recent fiscal quarter (the
registrants fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrants internal control
over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrants auditors and the
audit committee of the registrants board of directors (or persons performing the equivalent
functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect
the registrants ability to record, process, summarize and report financial information;
and |
b) | Any fraud, whether or not material, that involves management or other employees who
have a significant role in the registrants internal control over financial reporting. |
1. | I have reviewed this quarterly report on Form 10-Q of Trinity Industries, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this
report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under our supervision, to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this report is being
prepared; |
||
b) | Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted
accounting principles; |
||
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and
presented in this report our conclusion about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this report based on such
evaluation; and |
||
d) | Disclosed in this report any change in the registrants internal control over financial
reporting that occurred during the registrants most recent fiscal quarter (the
registrants fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrants internal control
over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrants auditors and the
audit committee of the registrants board of directors (or persons performing the equivalent
functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect
the registrants ability to record, process, summarize and report financial information;
and |
b) | Any fraud, whether or not material, that involves management or other employees who
have a significant role in the registrants internal control over financial reporting. |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the
financial condition and result of operations of the Company, as of, and for, the periods
presented in the Report. |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the
financial condition and result of operations of the Company, as of, and for, the periods
presented in the Report. |
Railcar Leasing and Management Services Group (Details 3) (Leasing Group [Member], USD $) In Millions | Sep. 30, 2011 |
---|---|
Future operating lease obligations of Trusts' railcar [Member] | |
Future operating lease obligations and future contractual minimum rental revenues related to these leases | |
Remaining three months of 2011 | $ 10.6 |
2012 | 44.5 |
2013 | 45.7 |
2014 | 44.9 |
2015 | 43.2 |
Thereafter | 382.0 |
Total | 570.9 |
Future Contractual Minimum Rental Revenues Of Trusts Railcar [Member] | |
Future operating lease obligations and future contractual minimum rental revenues related to these leases | |
Remaining three months of 2011 | 15.2 |
2012 | 53.2 |
2013 | 37.5 |
2014 | 23.5 |
2015 | 17.7 |
Thereafter | 33.9 |
Total | $ 181.0 |
Consolidated Balance Sheets (Parenthetical) (USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 | |||
---|---|---|---|---|---|
Assets | |||||
Property, plant and equipment of TRIP Holdings | $ 5,422.7 | [1] | $ 5,202.2 | ||
Accumulated depreciation on property, plant and equipment of TRIP Holdings | 1,191.7 | [1] | 1,090.2 | ||
Restricted cash | 229.4 | [1] | 207.1 | ||
Debt: | |||||
Debt unamortized discount | 102.7 | [1] | 111.1 | ||
Stockholders' equity: | |||||
Preferred stock, shares authorized | 1.5 | [1] | 1.5 | ||
Preferred stock, shares unissued | 1.5 | [1] | 1.5 | ||
Common stock, shares authorized | 200.0 | [1] | 200.0 | ||
TRIP Holdings [Member] | |||||
Assets | |||||
Property, plant and equipment of TRIP Holdings | 1,273.5 | [1] | 1,282.1 | ||
Accumulated depreciation on property, plant and equipment of TRIP Holdings | 115.6 | [1] | 90.3 | ||
Restricted cash | $ 61.5 | [1] | $ 46.0 | ||
|
Accumulated Other Comprehensive Loss (Details) (USD $) In Millions | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | |
Comprehensive net income (loss) | ||||
Net income attributable to Trinity Industries, Inc | $ 31.9 | $ 29.7 | $ 86.1 | $ 50.1 |
Other comprehensive income (loss): | ||||
Change in currency translation adjustment, net of tax benefit of $0.0 | (0.1) | |||
Change in unrealized loss on derivative financial instruments, net of tax benefit of $(2.8), $(4.3), $(2.0), and $(11.6) | (3.5) | |||
Comprehensive net income | 85.2 | |||
Trinity Stockholders' Equity [Member] | ||||
Comprehensive net income (loss) | ||||
Net income attributable to Trinity Industries, Inc | 31.9 | 29.7 | 86.1 | 50.1 |
Other comprehensive income (loss): | ||||
Change in currency translation adjustment, net of tax benefit of $0.0 | (0.1) | |||
Change in unrealized loss on derivative financial instruments, net of tax benefit of $(2.8), $(4.3), $(2.0), and $(11.6) | (5.2) | (7.6) | (3.2) | (23.5) |
Other changes, net of tax expense of $0.7 | 1.1 | |||
Comprehensive net income | $ 26.7 | $ 22.1 | $ 82.8 | $ 27.7 |
Investment in TRIP Holdings (Details) (USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Investment in TRIP Holdings [Abstract] | ||
Capital contributions | $ 47.3 | $ 47.3 |
Equity purchased from investors | 44.8 | 44.8 |
Total investment | 92.1 | 92.1 |
Equity in earnings | 11.2 | 7.5 |
Equity in unrealized gains (losses) on derivative financial instruments | (1.9) | (1.4) |
Distributions | (7.0) | (7.0) |
Deferred broker fees | (0.6) | (0.8) |
Carrying Value of TRIP Holdings | $ 93.8 | $ 90.4 |
Net Income Attributable to Trinity industries, Inc. Per Common Share | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Attributable to Trinity Industries, Inc. Per Common Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Attributable to Trinity Industries, Inc. Per Common Share |
Note 17. Net Income Attributable to Trinity Industries, Inc. Per Common Share
Basic net income attributable to Trinity Industries, Inc. per common share 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 net income attributable to
Trinity per common share includes the net impact of unvested restricted shares and shares that
could be issued under outstanding stock options. Total weighted average restricted shares and
antidilutive stock options were 2.9 million shares for the three and nine month periods ended
September 30, 2011. Total weighted average restricted shares and antidilutive stock options were
2.8 million shares for the three and nine month periods ended September 30, 2010.
The computation of basic and diluted net income attributable to Trinity Industries, Inc. is as
follows:
|
Document and Entity Information (USD $) In Millions, except Share data | 9 Months Ended | |
---|---|---|
Sep. 30, 2011 | Oct. 14, 2011 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TRINITY INDUSTRIES INC | |
Entity Central Index Key | 0000099780 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2011 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2011 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $ 1,374.4 | |
Entity Common Stock, Shares Outstanding | 80,134,838 |
Railcar Leasing and Management Services Group (Details 1) (USD $) In Millions, unless otherwise specified | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | |
Revenues: | ||||
Total revenues | $ 153.1 | $ 122.1 | $ 413.3 | $ 362.9 |
Operating Profit: | ||||
Total operating profit | 105.4 | 91.9 | 286.3 | 222.8 |
Interest and rent expense: | ||||
Interest expense | 47.9 | 45.3 | 136.2 | 136.3 |
TRIP Holdings [Member] | Leasing Group [Member] | ||||
Revenues: | ||||
Total revenues | 29.6 | 28.8 | 95.9 | 87.9 |
Percent Change | 2.80% | 9.10% | ||
Operating Profit: | ||||
Total operating profit | 17.4 | 16.3 | 51.4 | 50.9 |
Interest and rent expense: | ||||
Interest expense | 18.5 | 11.7 | 40.8 | 35.3 |
TRIP Holdings [Member] | Leasing Group [Member] | Leasing and management [Member] | ||||
Revenues: | ||||
Total revenues | 29.2 | 28.8 | 87.4 | 87.0 |
Percent Change | 1.40% | 0.50% | ||
Operating Profit: | ||||
Total operating profit | 17.4 | 16.3 | 51.3 | 50.9 |
TRIP Holdings [Member] | Leasing Group [Member] | Sales of cars from the lease fleet [Member] | ||||
Revenues: | ||||
Total revenues | 0.4 | 8.5 | 0.9 | |
Operating Profit: | ||||
Total operating profit | 0.1 | |||
Wholly Owned Subsidiaries [Member] | Leasing Group [Member] | ||||
Revenues: | ||||
Total revenues | 123.5 | 93.3 | 317.4 | 275.0 |
Percent Change | 32.40% | 15.40% | ||
Operating Profit: | ||||
Total operating profit | 46.8 | 36.6 | 127.2 | 99.4 |
Interest and rent expense: | ||||
Interest expense | 24.8 | 21.6 | 75.4 | 67.2 |
Wholly Owned Subsidiaries [Member] | Leasing Group [Member] | Leasing and management [Member] | ||||
Revenues: | ||||
Total revenues | 94.6 | 86.1 | 277.8 | 256.2 |
Percent Change | 9.90% | 8.40% | ||
Operating Profit: | ||||
Total operating profit | 40.3 | 34.3 | 116.3 | 94.9 |
Wholly Owned Subsidiaries [Member] | Leasing Group [Member] | Sales of cars from the lease fleet [Member] | ||||
Revenues: | ||||
Total revenues | 28.9 | 7.2 | 39.6 | 18.8 |
Operating Profit: | ||||
Total operating profit | 6.5 | 2.3 | 10.9 | 4.5 |
Leasing Group [Member] | ||||
Revenues: | ||||
Total revenues | 153.1 | 122.1 | 413.3 | 362.9 |
Percent Change | 25.40% | 13.90% | ||
Operating Profit: | ||||
Total operating profit | 64.2 | 52.9 | 178.6 | 150.3 |
Operating profit margin: | ||||
Total operating profit margin | 41.90% | 43.30% | 43.20% | 41.40% |
Interest and rent expense: | ||||
Rent expense | 12.1 | 12.2 | 36.4 | 36.5 |
Interest expense | 43.3 | 33.3 | 116.2 | 102.5 |
Leasing Group [Member] | TRIP Holdings External [Member] | ||||
Interest and rent expense: | ||||
Interest expense | 15.3 | 11.7 | 37.6 | 35.3 |
Leasing Group [Member] | TRIP Holdings Intercompany [Member] | ||||
Interest and rent expense: | ||||
Interest expense | $ 3.2 | $ 3.2 | ||
Leasing Group [Member] | Leasing and management [Member] | ||||
Operating profit margin: | ||||
Total operating profit margin | 46.60% | 44.00% | 45.90% | 42.50% |
Leasing Group [Member] | Sales of cars from the lease fleet [Member] | ||||
Operating profit margin: | ||||
Total operating profit margin | 22.20% | 31.90% | 22.90% | 22.80% |
Acquisitions and Divestitures (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Divestitures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition and divestiture activity |
|
Railcar Leasing and Management Services Group (Details) (USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 | |||
---|---|---|---|---|---|
Consolidating Financial Information | |||||
Cash, cash equivalents, and short-term marketable securities | $ 272.8 | $ 512.0 | |||
Equipment, net pledged as collateral | 4,773.2 | 4,648.6 | |||
Net deferred profit on railcars sold to the Leasing Group | (542.2) | (536.6) | |||
Property, Plant and Equipment, net | 4,231.0 | [1] | 4,112.0 | ||
Restricted cash | 229.4 | [1] | 207.1 | ||
Debt: | |||||
Long-term Debt, Gross | 559.0 | 561.4 | |||
Less: unamortized discount | (102.7) | [1] | (111.1) | ||
Total Recourse | 456.3 | [1] | 450.3 | ||
Non-recourse | 2,627.6 | 2,457.4 | |||
Less: non-recourse debt owned by Trinity | (112.0) | 0 | |||
Total debt | 2,971.9 | [1] | 2,907.7 | ||
Manufacturing/Corporate [Member] | |||||
Consolidating Financial Information | |||||
Cash, cash equivalents, and short-term marketable securities | 268.6 | 508.2 | |||
Equipment, net pledged as collateral | 510.8 | 491.4 | |||
Net deferred profit on railcars sold to the Leasing Group | 0 | 0 | |||
Property, Plant and Equipment, net | 510.8 | 491.4 | |||
Restricted cash | 0 | 0 | |||
Debt: | |||||
Long-term Debt, Gross | 454.4 | 452.8 | |||
Less: unamortized discount | (102.7) | (111.1) | |||
Total Recourse | 351.7 | 341.7 | |||
Non-recourse | 0 | 0 | |||
Less: non-recourse debt owned by Trinity | 0 | 0 | |||
Total debt | 351.7 | 341.7 | |||
TRIP Holdings [Member] | Leasing Group [Member] | |||||
Consolidating Financial Information | |||||
Cash, cash equivalents, and short-term marketable securities | 0 | 0 | |||
Equipment, net pledged as collateral | 1,157.9 | 1,191.8 | |||
Net deferred profit on railcars sold to the Leasing Group | (190.7) | (196.2) | |||
Property, Plant and Equipment, net | 967.2 | 995.6 | |||
Restricted cash | 61.5 | 46.0 | |||
Debt: | |||||
Long-term Debt, Gross | 0 | 0 | |||
Less: unamortized discount | 0 | 0 | |||
Total Recourse | 0 | 0 | |||
Non-recourse | 1,025.3 | 1,003.9 | |||
Less: non-recourse debt owned by Trinity | (112.0) | 0 | |||
Total debt | 913.3 | 1,003.9 | |||
Wholly Owned Subsidiaries [Member] | Leasing Group [Member] | |||||
Consolidating Financial Information | |||||
Cash, cash equivalents, and short-term marketable securities | 4.2 | 3.8 | |||
Equipment, net pledged as collateral | 3,104.5 | 2,965.4 | |||
Net deferred profit on railcars sold to the Leasing Group | (351.5) | (340.4) | |||
Property, Plant and Equipment, net | 2,753.0 | 2,625.0 | |||
Restricted cash | 167.9 | 161.1 | |||
Debt: | |||||
Long-term Debt, Gross | 104.6 | 108.6 | |||
Less: unamortized discount | 0 | 0 | |||
Total Recourse | 104.6 | 108.6 | |||
Non-recourse | 1,602.3 | 1,453.5 | |||
Less: non-recourse debt owned by Trinity | 0 | 0 | |||
Total debt | 1,706.9 | 1,562.1 | |||
TRIP Holdings [Member] | |||||
Consolidating Financial Information | |||||
Restricted cash | $ 61.5 | [1] | $ 46.0 | ||
|
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Investment in TRIP Holdings | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in TRIP Holdings [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in TRIP Holdings |
Note 6. Investment in TRIP Holdings
In 2007, the Company and other third-party equity investors formed TRIP Holdings for the
purpose of providing railcar leasing and management services in North America. TRIP Holdings,
through its wholly-owned subsidiary, TRIP Rail Leasing LLC (“TRIP Leasing”), purchased railcars
from the Company’s Rail and Leasing Groups funded by capital contributions from TRIP Holdings’
equity investors and borrowings under the TRIP Warehouse Loan, defined as such in Note 11 Debt. As
of September 30, 2011, TRIP Leasing had purchased $1,284.7 million of railcars from the Company.
Railcars purchased from the Company by TRIP Leasing were required to be purchased at prices
comparable with the prices of all similar, new railcars sold contemporaneously by the Company and
at prices based on third-party appraised values for used railcars.
The Company currently owns 57% of TRIP Holdings with the remainder owned by three other
third-party equity investors. The Company receives distributions from TRIP Holdings as an equity
investor, when allowed, in proportion to its 57% equity interest and has an interest in the net
assets of TRIP Holdings upon a liquidation event in the same proportion. The terms of the Company’s
equity investment are identical to the terms of each of the other equity investors. Other than as
described further below, Trinity has no remaining equity commitment to TRIP Holdings as of
September 30, 2011 and has no obligation to guarantee performance under any TRIP-related debt
agreements, guarantee any railcar residual values, shield any parties from losses, or guarantee
minimum yields.
The manager of TRIP Holdings, Trinity Industries Leasing Company, may be removed without cause
as a result of a majority vote of the third-party equity investors.
In July 2011, TRIP Holdings and its newly-formed subsidiary, TRIP Master Funding, issued
$1,032.0 million in new debt which was used by TRIP Master Funding to purchase all of the railcar
equipment owned by TRIP Leasing which, in
turn, repaid all outstanding borrowings under the TRIP
Warehouse Loan and settled all outstanding related interest rate hedges. See Note 11 Debt for a
description of TRIP Holdings and its related debt.
The Company’s carrying value of its investment in TRIP Holdings is as follows:
Administrative fees paid to TILC by TRIP Holdings and subsidiaries for the three and nine
month periods ended September 30, 2011, were $1.2 million and $3.1 million, respectively, and $0.9
million and $2.8 million, respectively, for the same periods last year.
In July 2011, Trinity entered into agreements with an equity investor of TRIP Holdings
potentially requiring Trinity, under certain limited circumstances, to acquire from the equity
investor an additional 16.3% equity ownership in TRIP Holdings if the option was exercised to its
fullest extent. Under the agreement, if exercised, Trinity would be required to pay the equity
investor an amount equal to 90% of the equity investor’s net investment in TRIP Holdings.
Similarly, at its option, Trinity, under certain limited circumstances, may acquire all of the
equity investor’s equity ownership in TRIP Holdings at an amount equal to 100% of the equity
investor’s net investment in TRIP Holdings. The agreements expire in July 2014. The fair value of
these agreements was recorded in the accompanying consolidated statement of operations as an
expense of $2.4 million for the three month period ended September 30, 2011. See Note 3 Fair Value
Accounting and Note 12 Other, Net.
See Note 6 of the December 31, 2010 Consolidated Financial Statements filed on Form 10-K for
additional information.
|
Fair Value Accounting (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Accounting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on recurring basis |
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Carrying amounts and estimated fair values of long-term debt |
|
Fair Value Accounting (Details) (Fair Value, Measurements, Recurring [Member], USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Assets: | ||
Cash equivalents | $ 162.0 | $ 286.0 |
Short-term marketable securities | 158.0 | |
Restricted cash | 229.4 | 207.1 |
Equity call agreement with TRIP Holdings equity investor | 0.7 | |
Fuel Commodities, Fair Value Disclosure | 0.1 | |
Total assets | 392.1 | 651.2 |
Interest rate hedges | ||
Equity put agreement with TRIP Holdings equity investor | 3.1 | |
Total liabilities | 60.2 | 94.0 |
TRIP Holdings [Member] | Level 1 [Member] | ||
Interest rate hedges | ||
Interest rate hedges | 0 | 0 |
Level 1 [Member] | ||
Assets: | ||
Cash equivalents | 162.0 | 286.0 |
Short-term marketable securities | 158.0 | |
Restricted cash | 229.4 | 207.1 |
Equity call agreement with TRIP Holdings equity investor | 0 | |
Fuel Commodities, Fair Value Disclosure | 0 | |
Total assets | 391.4 | 651.1 |
Interest rate hedges | ||
Equity put agreement with TRIP Holdings equity investor | 0 | |
Total liabilities | 0 | 0 |
Level 1 [Member] | Wholly Owned Subsidiaries [Member] | ||
Interest rate hedges | ||
Interest rate hedges | 0 | 0 |
TRIP Holdings [Member] | Level 2 [Member] | ||
Interest rate hedges | ||
Interest rate hedges | 4.7 | 48.3 |
Level 2 [Member] | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Short-term marketable securities | 0 | |
Restricted cash | 0 | 0 |
Equity call agreement with TRIP Holdings equity investor | 0 | |
Fuel Commodities, Fair Value Disclosure | 0.1 | |
Total assets | 0 | 0.1 |
Interest rate hedges | ||
Equity put agreement with TRIP Holdings equity investor | 0 | |
Total liabilities | 57.1 | 94.0 |
Level 2 [Member] | Wholly Owned Subsidiaries [Member] | ||
Interest rate hedges | ||
Interest rate hedges | 52.4 | 45.7 |
TRIP Holdings [Member] | Level 3 [Member] | ||
Interest rate hedges | ||
Interest rate hedges | 0 | 0 |
Level 3 [Member] | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Short-term marketable securities | 0 | |
Restricted cash | 0 | 0 |
Equity call agreement with TRIP Holdings equity investor | 0.7 | |
Fuel Commodities, Fair Value Disclosure | 0 | |
Total assets | 0.7 | 0 |
Interest rate hedges | ||
Equity put agreement with TRIP Holdings equity investor | 3.1 | |
Total liabilities | 3.1 | 0 |
Level 3 [Member] | Wholly Owned Subsidiaries [Member] | ||
Interest rate hedges | ||
Interest rate hedges | 0 | 0 |
TRIP Holdings [Member] | ||
Interest rate hedges | ||
Interest rate hedges | 4.7 | 48.3 |
Wholly Owned Subsidiaries [Member] | ||
Interest rate hedges | ||
Interest rate hedges | $ 52.4 | $ 45.7 |
Employee Retirement Plans (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Retirement Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of net retirement cost |
|
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation |
The foregoing consolidated financial statements are unaudited and have been prepared from the
books and records of Trinity Industries, Inc. and its subsidiaries (“Trinity”, “Company”, “we”, or
“our”) including its majority-owned subsidiary, TRIP Rail Holdings LLC (“TRIP Holdings”). In our
opinion, all normal and recurring adjustments necessary for a fair presentation of the financial
position of the Company as of September 30, 2011, and the results of operations for the three and
nine month periods ended September 30, 2011 and 2010, and cash flows for the nine month periods
ended September 30, 2011 and 2010, have been made in conformity with generally accepted accounting
principles. Because of seasonal and other factors, the results of operations for the nine month
period ended September 30, 2011 may not be indicative of expected results of operations for the
year ending December 31, 2011. These interim financial statements and notes are condensed as
permitted by the instructions to Form 10-Q and should be read in conjunction with the audited
consolidated financial statements of the Company included in its Form 10-K for the year ended
December 31, 2010.
|
Stockholders' Equity |
On December 9, 2010, the Company’s Board of Directors authorized a new $200 million share
repurchase program, effective January 1, 2011. This program replaced the Company’s previous share
repurchase program and expires December 31, 2012. No shares were repurchased under this program
during the nine months ended September 30, 2011.
For the quarter ended June 30, 2011, an amount of $15.5 million was reclassified between
capital in excess of par value and accumulated other comprehensive loss to properly reflect the
additional amount of accumulated unrealized loss on derivative financial instruments attributable
to the Company after the purchase of additional interests in TRIP Holdings.
|
Recent Accounting Pronouncements |
In June 2011, the Financial Accounting Standards Board issued Accounting Standards Update No.
2011-05, “Comprehensive Income (ASC Topic 220): Presentation of Comprehensive Income,” (“ASU
2011-05”) which amends current comprehensive income guidance. This accounting update eliminates the
option to present the components of other comprehensive income as part of the statement of
shareholders’ equity. Instead, the Company must report comprehensive income in either a single
continuous statement of comprehensive income which contains two sections, net income and other
comprehensive income, or in two separate but consecutive statements. ASU 2011-05 will be effective
for public companies during the interim and annual periods beginning after Dec. 15, 2011 with early
adoption permitted. The adoption of ASU 2011-05 will not have an impact on the Company’s
consolidated financial position, results of operations or cash flows as it only requires a change
in the format of the current presentation.
|
Reclassifications |
Certain prior year balances have been reclassified in the Consolidated Statements of
Operations to conform to the 2011 presentation.
|
Debt | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt |
Note 11. Debt
The following table summarizes the components of debt as of September 30, 2011 and December
31, 2010:
We have a $425.0 million unsecured revolving credit facility which matures on October 19,
2012. As of September 30, 2011, we had letters of credit issued under our revolving credit facility
in an aggregate principal amount of $82.6 million, leaving $342.4 million available for borrowing.
Other than with respect to such letters of credit, there were no borrowings under our revolving
credit facility as of September 30, 2011 or for the nine month period then ended. Of the
outstanding letters of credit as of September 30, 2011, a total of $8.1 million is expected to
expire in 2011 and the remainder in 2012. The majority of our letters of credit obligations
supports the Company’s various insurance programs and generally renew each year. As of September
30, 2011, borrowings under the credit facility bear interest at Libor plus 75.0 basis points or
prime. Trinity’s revolving credit facility requires maintenance of ratios related to interest
coverage for the leasing and manufacturing operations, leverage, and minimum net worth. On October
20, 2011, we amended and extended this $425.0 million facility for an additional four years and it
now matures on October 20, 2016. Borrowings under the amended credit facility bear interest at
Libor plus 150.0 basis points or prime plus 50.0 basis points. Financial covenants are similar to
existing covenants but no longer include a minimum net worth requirement. As of September 30, 2011,
we were in compliance with all such financial covenants.
The Company’s 3 7/8% convertible subordinated notes are recorded net of unamortized discount
to reflect their underlying economics by capturing the value of the conversion option as borrowing
costs. As of September 30, 2011 and December 31, 2010, capital in excess of par value included
$92.8 million related to the estimated value of the Convertible Subordinated Notes’ conversion
options. Debt discount recorded in the consolidated balance sheet is being amortized through June
1, 2018 to yield an effective annual interest rate of 8.42% based upon the estimated market
interest rate for comparable non-convertible debt as of the issuance date of the Convertible
Subordinated Notes. Total interest expense recognized on the Convertible Subordinated Notes for the
three and nine months ended September 30, 2011 and 2010 is as follows:
At September 30, 2011, the Convertible Subordinated Notes were convertible at a price of
$51.47 per share resulting in 8,742,957 issuable shares. As of September 30, 2011, if the
Convertible Subordinated Notes had been converted, no shares would have been issued since the
trading price of the Company’s common stock was below the conversion price of the Convertible
Subordinated Notes. The Company has not entered into any derivatives transactions associated with
these notes.
The $475 million TILC warehouse loan facility, established to finance railcars owned by TILC,
had $280.7 million outstanding and $194.3 million available as of September 30, 2011. The warehouse
loan is a non-recourse obligation secured by a portfolio of railcars and operating leases, certain
cash reserves, and other assets acquired and owned by the warehouse loan facility. The principal
and interest of this indebtedness are paid from the cash flows of the underlying leases. Advances
under the facility bear interest at a defined index rate plus a margin, for an all-in interest rate
of 2.25% at September 30, 2011. In February 2011, the warehouse loan facility was renewed for an
additional two years and now matures in February 2013. Amounts outstanding at maturity, absent
renewal, will be payable in three installments in August 2013, February 2014, and August 2014.
In June 2007, TRIP Leasing entered into a $1.19 billion Warehouse Loan Agreement which
contained a floating rate revolving facility (the “TRIP Warehouse Loan”). In July 2011, TRIP
Holdings issued $175.0 million in Senior Secured Notes (the “TRIP Holdings Senior Secured Notes”)
and TRIP Master Funding, a Delaware limited liability company and limited purpose, wholly-owned
subsidiary of TRIP Holdings, issued $857.0 million in Secured Railcar Equipment Notes (the “TRIP
Master Funding Secured Railcar Equipment Notes”). The proceeds from the TRIP Holdings Senior
Secured Notes and the TRIP Master Funding Secured Railcar Equipment Notes were primarily used by
TRIP Master Funding to purchase all of the railcar equipment owned by TRIP Leasing which, in turn,
repaid the TRIP Warehouse Loan in full.
The TRIP Holdings Senior Secured Notes have a stated final maturity date of July 6, 2014 and
bear interest at 8.00% payable quarterly with yield to call interest rates of 12.00% for
redemptions or other prepayments on or prior to January 15, 2013 and 15.00% for redemptions or
other prepayments after such date. The TRIP Holdings Senior Secured Notes are secured, among other
things, by a pledge of each equity investor’s ownership interest in TRIP Holdings and certain
distributions made to TRIP Holdings from TRIP Master Funding and are non-recourse to Trinity, TILC,
TRIP Master Funding, and the other equity investors in TRIP Holdings. Trinity purchased $112.0
million of the TRIP Holdings Senior Secured Notes in July 2011.
The TRIP Master Funding Secured Railcar Equipment Notes were issued pursuant to an Indenture,
dated July 6, 2011 between TRIP Master Funding and Wilmington Trust Company, as indenture trustee,
with a final maturity date in July 2041. The TRIP Master Funding Secured Railcar Equipment Notes
consist of three classes with the Class A-1a notes bearing interest at 4.37%, the Class A-1b notes
bearing interest at Libor plus 2.50%, and the Class A-2 notes bearing interest at 6.02%, all
payable monthly. The TRIP Master Funding Secured Railcar Equipment Notes are non-recourse to
Trinity, TILC, and the other equity investors in TRIP Holdings and are secured by TRIP Master
Funding’s portfolio of railcars and operating leases thereon, its cash reserves and all other
assets owned by TRIP Master Funding. As of September 30, 2011, there were $217.7 million, $123.0
million, and $509.6 million of Class A-1a, Class A-1b, and of Class A-2 notes outstanding,
respectively.
Terms and conditions of other debt, including recourse and non-recourse provisions, are
described in Note 11 of the December 31, 2010 Consolidated Financial Statements filed on Form 10-K.
The remaining principal payments under existing debt agreements as of September 30, 2011
are as follows:
|
Acquisitions and Divestitures | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Divestitures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Divestitures |
Note 2. Acquisitions and Divestitures
For the three and nine months ended September 30, 2011, all of our acquisition and divestiture
activity was incurred by the Construction Products Group and is summarized as follows:
|
Debt (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of debt |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest expenses recognized on the convertible subordinated notes |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining principal payments under existing debt agreements |
|
Property, Plant, and Equipment | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant, and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant, and Equipment |
Note 8. Property, Plant, and Equipment
The following table summarizes the components of property, plant, and equipment as of
September 30, 2011 and December 31, 2010.
|
Income Taxes | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
Note 13. Income Taxes
The provision for income taxes results in effective tax rates different from the statutory
rates. The following is a reconciliation between the statutory United States Federal income tax
rate and the Company’s effective income tax rate:
We are currently under two separate Internal Revenue Service (“IRS”) examination cycles for
the years ended 2004 through 2005 and 2006 through 2008. Our statute of limitations therefore
remains open from the year ended December 31, 2004 and forward. Our 2004-2005 exam cycle is
currently under administrative appeal for certain unresolved issues. We expect this cycle to be
effectively settled during the first or second quarter of 2012. Additionally, the 2006-2008 cycle
is still in the examination level and thus, we are unable to determine how long these periods will
remain open.
The 2003 tax year of one of our Mexican subsidiaries is still under review and thus its
statute of limitations remains open. The 2004 and 2005 statute of limitations of all of our Mexican
subsidiaries are closed and the 2006 and forward years remain open.
During the third quarter ended September 30, 2011, we effectively settled an audit of one of
our Swiss subsidiaries which covered the years 2006 through 2009. There was no impact to the
income statement as a result of the settlement.
Our various other European subsidiaries, including subsidiaries that were sold in 2006, are
impacted by various statutes of limitations which are generally open from 2003 forward. An
exception to this is our discontinued operations in Romania, which have been audited through 2004.
Generally, states’ statutes of limitations in the United States are open from 1998 forward
because we filed amended tax returns to reflect previous IRS adjustments. We expect the 1998-2001
state statutes of limitations to close by the end of 2011.
The change in unrecognized tax benefits for the nine months ended September 30, 2011 and 2010
was as follows:
Additions for tax positions related to the current year in the amounts of $2.9 million and
$2.6 million recorded in the nine months ended September 30, 2011 and 2010, respectively, were
amounts provided for tax positions previously taken in foreign jurisdictions and tax positions
taken for Federal and state income tax purposes as well as deferred tax liabilities that have been
reclassified to uncertain tax positions.
Additions for tax positions of prior years for the nine months ended September 30, 2011 and
2010 of $15.1 million and $6.0, million, respectively, are primarily due to Federal tax positions
taken on prior year returns that have been proposed by the IRS but not previously reserved. These
items are primarily timing differences and thus we would be allowed a future
tax deduction. We have recorded a corresponding deferred tax asset for the future reduction of
taxes related to these adjustments.
Settlements during the nine months ended September 30, 2011 primarily relate to the audit of a
Swiss subsidiary that resulted in the payment of $2.8 million of taxes and interest. Subsequent to
the payment of the taxes, we applied for and received treaty relief from the Swiss tax authorities
and received $1.8 million in tax refunds. The tax that was not refunded is creditable against
future US income tax and thus is being carried as a deferred tax asset.
The total amount of unrecognized tax benefits including interest and penalties at September
30, 2011 and 2010, that would affect the Company’s effective tax rate if recognized was $18.8
million and $14.9 million, respectively.
Trinity accounts for interest expense and penalties related to income tax issues as income tax
expense. Accordingly, interest expense and penalties associated with an uncertain tax position are
included in the income tax provision. The total amount of accrued interest and penalties as of
September 30, 2011 and December 31, 2010 was $12.8 million and $11.2 million, respectively. Income
tax expense for the three and nine months ended September 30, 2011, included a decrease in income
tax expense of $0.3 million and an increase of $1.5 million, respectively, in interest expense and
penalties related to uncertain tax positions. Income tax expense for the three and nine months
ended September 30, 2010, included a reduction in income tax expense of $3.2 million and $5.5
million, respectively, in interest expense and penalties related to uncertain tax positions.
|
Accumulated Other Comprehensive Loss (Details Textual) (USD $) In Millions | 3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | Dec. 31, 2010 | |
Accumulated Other Comprehensive Loss (Textual) [Abstract] | |||||
Tax benefit on change in currency translation adjustment | $ 0 | ||||
Tax expense (benefit) on change in unrealized loss on derivative financial instruments | (2.8) | (4.3) | (2.0) | (11.6) | |
Tax expense on other changes | 0.7 | ||||
Tax benefit on currency translation adjustment | (0.2) | (0.2) | (0.2) | ||
Tax benefit on unrealized loss on derivative financial instruments | (31.7) | (31.7) | (21.4) | ||
Tax benefit on funded status of pension liability | $ (24.8) | $ (24.8) | $ (24.8) |
Goodwill | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill |
Note 9. Goodwill
Goodwill by segment is as follows:
The net increase in the Construction Products Group goodwill as of September 30, 2011 is due
to 2011 acquisitions and divestitures.
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Property, Plant, and Equipment (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant, and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of property, plant, and equipment |
|
Derivative Instruments | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments |
Note 7. Derivative Instruments
We use derivative instruments to mitigate the impact of changes in interest rates and pricing
for zinc, natural gas, and diesel fuel, as well as to convert a portion of our variable-rate debt
to fixed-rate debt. Additionally, we use derivative instruments to mitigate the impact of
unfavorable fluctuations in foreign currency exchange rates. We also use derivatives to lock in
fixed interest rates in anticipation of future debt issuances. Derivative instruments that are
designated and qualify as cash flow hedges are accounted for in accordance with applicable
accounting standards. See Note 3 Fair Value Accounting to the consolidated financial statements for
discussion of how the Company valued its commodity hedges and interest rate swaps at
September 30, 2011.
Interest rate hedges
During 2005 and 2006, we entered into interest rate swap transactions in anticipation of
a future debt issuance. These instruments, with a notional amount of $200 million, fixed the
interest rate on a portion of a future debt issuance associated with a railcar leasing transaction
in 2006 and settled at maturity in the first quarter of 2006. These interest rate swaps were being
accounted for as cash flow hedges with changes in the fair value of the instruments of $4.5 million
in income recorded in accumulated other comprehensive loss (“AOCL”) through the date the related
debt issuance closed in May 2006. The balance is being amortized over the term of the related debt.
The effect on interest expense is due to amortization of the AOCL balance.
In anticipation of a future debt issuance, we entered into interest rate swap transactions
during the fourth quarter of 2006 and during 2007. These instruments, with a notional amount of
$370 million, hedged the interest rate on a portion of a future debt issuance associated with an
anticipated railcar leasing transaction, which closed in May 2008. These instruments settled during
the second quarter of 2008 and were accounted for as cash flow hedges with changes in the fair
value of the instruments of $24.5 million recorded as a loss in AOCL through the date the related
debt issuance closed in May 2008. The balance is being amortized over the term of the related debt.
The effect on interest expense is due to amortization of the AOCL balance.
During 2008, we entered into interest rate swap transactions, with a notional amount of $200
million, which were being used to hedge our exposure to changes in the variable interest rate
associated with our TILC warehouse facility. The effect on interest expense included the mark to
market valuation on the interest rate swap transactions and monthly interest settlements. These
interest rate hedges expired during the fourth quarter of 2010.
In May 2008, we entered into an interest rate swap transaction that is being used to fix the
Libor component of the debt issuance which closed in May 2008. The effect on interest expense
results primarily from monthly interest settlements.
Between 2007 and 2009, TRIP Holdings, as required by its warehouse loan agreement, entered
into interest rate swap transactions, all of which qualified as cash flow hedges, to reduce the
effect of changes in variable interest rates. In July 2011, these interest rate hedges were
terminated in connection with the refinancing of the TRIP Warehouse Loan. Balances included in AOCL
at the date the hedges were terminated are being amortized over the expected life of the new debt
with $6.0 million of additional interest expense expected to be recognized during the next twelve
months following September 30, 2011. Also in July 2011, TRIP Holdings’ wholly-owned subsidiary,
TRIP Rail Master Funding, entered into an interest rate swap transaction with a notional amount of
$94.1 million to reduce the effect of changes in variable interest rates associated with the Class
A-1b secured railcar equipment notes.
See Note 11 Debt for a discussion of the related debt instruments.
Other Derivatives
Natural gas and diesel fuel
We maintain a program to mitigate the impact of fluctuations in the price of natural gas and
diesel fuel purchases. The intent of the program is to protect our operating profit from adverse
price changes by entering into derivative instruments. For those instruments that do not qualify
for hedge accounting treatment, any changes in their valuation are recorded directly to the
consolidated statement of operations. The amount recorded in the consolidated balance sheet as of
September 30, 2011 for these instruments was not significant.
Foreign exchange hedge
During the nine month periods ended September 30, 2011 and 2010, we entered into foreign
exchange hedges to mitigate the impact on operating profit of unfavorable fluctuations in foreign
currency exchange rates. These instruments are short term with quarterly maturities and no
remaining balance in AOCL as of September 30, 2011.
Zinc
We maintain a program to mitigate the impact of fluctuations in the price of zinc purchases.
The intent of this program is to protect our operating profit from adverse price changes by
entering into derivative instruments. The effect of these derivative instruments on the
consolidated financial statements for the three and nine months ended September 30, 2011 and 2010
was not significant.
|
Railcar Leasing and Management Services Group (Details Textual) (USD $) In Millions | 1 Months Ended | 9 Months Ended | 1 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | Dec. 31, 2010 | Jul. 31, 2011
TRIP Holdings [Member]
Leasing Group [Member] | Sep. 30, 2011
Wholly Owned Subsidiaries [Member]
Leasing Group [Member] | Sep. 30, 2011
Wholly Owned Subsidiaries [Member]
Leasing Group [Member]
Wholly Owned Subsidiaries Lessee [Member] | Sep. 30, 2011
Leasing Group [Member] | Jul. 31, 2011
TRIP Holdings [Member] | ||||
Railcar Leasing and Management Services Group (Textual) [Abstract] | ||||||||||
Period of lease contracts with third parties, range minimum | 1 year | |||||||||
Period of lease contracts with third parties, range maximum | 20 years | |||||||||
Equipment pledged as collateral for Leasing Group debt | $ 2,442.8 | |||||||||
Equipment net pledged as collateral for securing capital lease obligations | 51.3 | |||||||||
New debt issued to repay outstanding borrowings of TRIP Warehouse Loan | 1,032.0 | 1,032.0 | ||||||||
Period of railcars leased from the Trusts under operating leases | 22 years | |||||||||
Total assets | 6,015.1 | [1] | 5,760.0 | 222.9 | ||||||
Cash | 91.7 | |||||||||
Railcars | 98.3 | |||||||||
Railcar Leasing and Management Services Group Additional (Textual) [Abstract] | ||||||||||
Operating lease obligations guaranteed | $ 31.2 | |||||||||
|
Consolidated Statement of Stockholders' Equity (Unaudited) (USD $) In Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Trinity Stockholders' Equity | Noncontrolling Interest | |||
---|---|---|---|---|---|---|---|---|---|---|---|
Beginning Balance at Dec. 31, 2010 | $ 1,845.7 | $ 81.7 | $ 606.1 | $ 1,200.5 | $ (95.5) | $ (28.0) | $ 1,764.8 | $ 80.9 | |||
Beginning Balance, Shares at Dec. 31, 2010 | 81.7 | (1.9) | |||||||||
Net income | 88.8 | 86.1 | 86.1 | 2.7 | |||||||
Other comprehensive income, net of tax: | |||||||||||
Currency translation adjustments | (0.1) | (0.1) | (0.1) | ||||||||
Change in unrealized loss on derivative financial instruments | (3.5) | (3.2) | (3.2) | (0.3) | |||||||
Comprehensive net income | 85.2 | 82.8 | 2.4 | ||||||||
Cash dividends on common stock | (20.8) | (20.8) | (20.8) | ||||||||
Restricted shares issued, net | 6.0 | 5.1 | 0.9 | 6.0 | |||||||
Restricted shares issued, net, Shares | 0.2 | ||||||||||
Stock options exercised | 1.8 | (0.6) | 2.4 | 1.8 | |||||||
Stock options exercised, Shares | 0.2 | ||||||||||
Reclassification of purchase of additional interest in TRIP Holdings | 15.5 | (15.5) | |||||||||
Ending Balance at Sep. 30, 2011 | 1,917.9 | [1] | 81.7 | 626.1 | 1,265.8 | (114.3) | (24.7) | 1,834.6 | 83.3 | ||
Ending Balance, Shares at Sep. 30, 2011 | 81.7 | (1.5) | |||||||||
Beginning Balance at Jun. 30, 2011 | |||||||||||
Net income | 31.6 | ||||||||||
Other comprehensive income, net of tax: | |||||||||||
Change in unrealized loss on derivative financial instruments | (5.2) | ||||||||||
Comprehensive net income | 26.7 | ||||||||||
Ending Balance at Sep. 30, 2011 | $ 1,917.9 | [1] | $ 81.7 | $ 1,834.6 | |||||||
Ending Balance, Shares at Sep. 30, 2011 | 81.7 | ||||||||||
|
Fair Value Accounting | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Accounting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Accounting |
Note 3. Fair Value Accounting
Assets and liabilities measured at fair value on a recurring basis are summarized below:
The carrying amounts and estimated fair values of our long-term debt were as follows:
The estimated fair value of our convertible subordinated notes was based on a quoted market
price as of September 30, 2011 and December 31, 2010, respectively. The estimated fair values of
our 2006, 2009, and 2010 secured railcar equipment notes, promissory notes, TRIP Master Funding
secured railcar equipment notes, TRIP Holdings warehouse loan, and term loan are based on our
estimate of their fair value as of September 30, 2011 and December 31, 2010, respectively. These
values were determined by discounting their future cash flows at the current market interest rate.
The carrying value of our Trinity Industries Leasing Company (“TILC”) warehouse facility
approximates fair value because the interest rate adjusts to the market interest rate and the
Company’s credit rating has not changed since the loan agreement was renewed in February 2011. The
fair values of all other financial instruments are estimated to approximate carrying value.
Fair value is defined as the exchange price that would be received for an asset or paid to
transfer a liability (an exit price) in the principal or most advantageous market to that asset or
liability in an orderly transaction between market participants on the measurement date. An entity
is required to establish a fair value hierarchy that maximizes the use of observable inputs and
minimizes the use of unobservable inputs when measuring fair value. The three levels of inputs that
may be used to measure fair values are listed below:
Level 1 — This level is defined as quoted prices in active markets for identical assets or
liabilities. The Company’s cash equivalents, short-term marketable securities, and restricted cash
are instruments of the United States Treasury, fully-insured certificates of deposit or
highly-rated money market mutual funds.
Level 2 — This level is defined as observable inputs other than Level 1 prices such as quoted
prices for similar assets or liabilities; quoted prices in markets that are not active; or other
inputs that are observable or can be corroborated by observable market data for substantially the
full term of the assets or liabilities. The Company’s fuel derivative instruments, which are
commodity options, are valued using energy and commodity market data. Interest rate hedges are
valued at exit prices obtained from each counterparty. See Note 7 Derivative Instruments and Note
11 Debt.
Level 3 — This level is defined as unobservable inputs that are supported by little or no
market activity and that are significant to the fair value of the assets or liabilities. The equity
put and call agreements with the TRIP equity investor are valued based on cash flow projections and certain
assumptions regarding the likelihood of exercising the option under the related agreement. See Note
6 Investment in TRIP Holdings.
|
Net Income Attributable to Trinity industries, Inc. Per Common Share (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Attributable to Trinity Industries, Inc. Per Common Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of basic and diluted net income attributable to Trinity Industries, Inc |
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Derivative Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate hedges |
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Interest rate hedges effect on interest expense |
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Other Derivatives |
|
Derivative Instruments (Details Textual) (USD $) In Millions | 9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2011
Interest Rate Locks, 2005 to 2006 [Member] | Sep. 30, 2011
Interest Rate Locks, 2006 to 2007 [Member] | Dec. 31, 2008
Interest Rate Swap, TILC Warehouse [Member] | Sep. 30, 2011
Interest Rate Swap TRIP Rail Master Funding Secured Railcar Equipment Notes [Member] | Jul. 31, 2011
Interest Rate Swap TRIP Rail Master Funding Secured Railcar Equipment Notes [Member] | |
Derivative Instruments (Textual) [Abstract] | ||||||
Interest rate swap, notional amount | $ 200.0 | $ 370.0 | $ 200.0 | $ 92.3 | $ 94.1 | |
Interest rate swaps being accounted for as cash flow hedges | 4.5 | 24.5 | ||||
Additional interest expense expected to be recognized | $ 6.0 |
Goodwill (Details) (USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 | |||
---|---|---|---|---|---|
Goodwill by Segment | |||||
Total Goodwill | $ 225.9 | [1] | $ 197.6 | ||
Rail Group [Member] | |||||
Goodwill by Segment | |||||
Total Goodwill | 122.5 | 122.5 | |||
Construction Products Group [Member] | |||||
Goodwill by Segment | |||||
Total Goodwill | 90.7 | 62.4 | |||
Energy Equipment Group [Member] | |||||
Goodwill by Segment | |||||
Total Goodwill | 10.9 | 10.9 | |||
Railcar Leasing and Management Services Group [Member] | |||||
Goodwill by Segment | |||||
Total Goodwill | $ 1.8 | $ 1.8 | |||
|
Railcar Leasing and Management Services Group (Details 4) (Leasing Group [Member], USD $) In Millions | Sep. 30, 2011 |
---|---|
Future contractual minimum rental revenues related to operating leases other than leases with the Trusts | |
Remaining three months of 2011 | $ 92.9 |
2012 | 331.4 |
2013 | 252.6 |
2014 | 181.8 |
2015 | 142.2 |
Thereafter | 329.1 |
Total | 1,330.0 |
Future Operating Lease Obligations [Member] | |
Future contractual minimum rental revenues related to operating leases other than leases with the Trusts | |
Remaining three months of 2011 | 1.4 |
2012 | 5.6 |
2013 | 5.3 |
2014 | 5.2 |
2015 | 5.2 |
Thereafter | 16.1 |
Total | 38.8 |
Future Contractual Minimum Rental Revenues [Member] | |
Future contractual minimum rental revenues related to operating leases other than leases with the Trusts | |
Remaining three months of 2011 | 1.4 |
2012 | 5.2 |
2013 | 4.2 |
2014 | 3.7 |
2015 | 2.8 |
Thereafter | 7.0 |
Total | $ 24.3 |
Debt (Details 2) (USD $) In Millions | Sep. 30, 2011 |
---|---|
Remaining principal payments under existing debt agreements | |
Remaining three months of 2011 | $ 29.4 |
2012 | 118.2 |
2013 | 210.5 |
2014 | 354.6 |
2015 | 108.8 |
Thereafter | 2,253.1 |
Manufacturing/Corporate Recourse [Member] | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2011 | 0.4 |
2012 | 1.2 |
2013 | 1.1 |
2014 | 1.1 |
2015 | 0.2 |
Thereafter | 450.4 |
Leasing - capital leases obligation [Member] | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2011 | 0.7 |
2012 | 2.8 |
2013 | 2.9 |
2014 | 3.1 |
2015 | 3.3 |
Thereafter | 36.4 |
Leasing - term loan [Member] | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2011 | 0.7 |
2012 | 2.8 |
2013 | 3.0 |
2014 | 3.3 |
2015 | 3.5 |
Thereafter | 42.1 |
2006 secured railcar equipment notes [Member] | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2011 | 3.3 |
2012 | 13.5 |
2013 | 15.1 |
2014 | 16.9 |
2015 | 18.6 |
Thereafter | 204.3 |
Promissory notes [Member] | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2011 | 6.4 |
2012 | 26.8 |
2013 | 29.1 |
2014 | 25.9 |
2015 | 22.4 |
Thereafter | 360.9 |
2009 secured railcar equipment notes [Member] | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2011 | 2.5 |
2012 | 9.2 |
2013 | 10.2 |
2014 | 9.9 |
2015 | 9.6 |
Thereafter | 179.5 |
2010 secured railcar equipment notes [Member] | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2011 | 3.1 |
2012 | 12.8 |
2013 | 14.6 |
2014 | 14.0 |
2015 | 15.3 |
Thereafter | 297.7 |
TILC warehouse facility [Member] | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2011 | 2.0 |
2012 | 8.1 |
2013 | 8.1 |
2014 | 5.4 |
2015 | 0 |
Thereafter | 0 |
TRIP Holdings senior secured notes - Total outstanding [Member] | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2011 | 0 |
2012 | 0 |
2013 | 0 |
2014 | 175.0 |
2015 | 0 |
Thereafter | 0 |
TRIP Holdings senior secured notes - Less: owned by Trinity [Member] | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2011 | 0 |
2012 | 0 |
2013 | 0 |
2014 | (112.0) |
2015 | 0 |
Thereafter | 0 |
TRIP Holdings senior secured notes [Member] | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2011 | 0 |
2012 | 0 |
2013 | 0 |
2014 | 63.0 |
2015 | 0 |
Thereafter | 0 |
TRIP Master Funding secured railcar equipment notes [Member] | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2011 | 10.3 |
2012 | 41.0 |
2013 | 41.1 |
2014 | 40.2 |
2015 | 35.9 |
Thereafter | 681.8 |
TILC warehouse facility - Termination Payments [Member] | |
Remaining principal payments under existing debt agreements | |
Remaining three months of 2011 | 0 |
2012 | 0 |
2013 | 85.3 |
2014 | 171.8 |
2015 | 0 |
Thereafter | $ 0 |
Segment Information | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information / Railcar Leasing and Management Services Group [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information |
Note 4. Segment Information
The Company reports operating results in five principal business segments: (1) the Rail Group,
which manufactures and sells railcars and related parts and components; (2) the Construction
Products Group, which manufactures and sells highway products and concrete and aggregates; (3) the
Inland Barge Group, which manufactures and sells barges and related products for inland waterway
services; (4) the Energy Equipment Group, which manufactures and sells products for energy related
businesses, including structural wind towers, tank containers and tank heads for pressure and
non-pressure vessels, propane tanks and utility, traffic, and lighting structures; and (5) the
Railcar Leasing and Management Services Group (“Leasing Group”), which provides fleet management,
maintenance, and leasing services. The segment All Other includes our captive insurance and
transportation companies; legal, environmental, and upkeep costs associated with non-operating
facilities; other peripheral businesses; and the change in market valuation related to ineffective
commodity hedges. Gains and losses from the sale of property, plant, and equipment which are
related to manufacturing and dedicated to the specific manufacturing operations of a particular
segment are recorded in the cost of revenues of that respective segment. Gains and losses from the
sale of property, plant, and equipment which can be utilized by multiple segments are recorded in
the cost of revenues of the All Other segment.
Sales and related net profits from the Rail Group to the Leasing Group are recorded in the
Rail Group and eliminated in consolidation. Sales between these groups are recorded at prices
comparable to those charged to external customers taking into consideration quantity, features, and
production demand. Amortization of deferred profit on railcars sold to the Leasing Group is
included in the operating profits of the Leasing Group. Sales of railcars from the lease fleet are
included in the Leasing Group.
The financial information for these segments is shown in the tables below. We operate
principally in North America.
Three Months Ended September 30, 2011
Three Months Ended September 30, 2010
Nine Months Ended September 30, 2011
Nine Months Ended September 30, 2010
|
Contingencies (Details) (USD $) In Millions, unless otherwise specified | 1 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2011
Railcar | Jun. 30, 2011
Railcar | Sep. 30, 2011 | |
Contingencies (Textual) [Abstract] | |||
Date Company received a letter from the Federal Railroad Administration ("FRA") containing a rail worthiness directive pertaining to a specific design of tank cars | In June 2011 | ||
Number of tank cars manufactured for transport of poison inhalation hazard materials | 948 | ||
Number of tank cars Federal Railroad Administration received notification regarding potential leaks around the man way nozzles | 5 | ||
Number of recently manufactured tank cars removed from service pursuant to directive | 100 | ||
Number of randomly selected tank cars removed from service | 67 | ||
Number of tank cars manufactured since 2006 less the number of manufactured tank cars removed from service pursuant to defective | 848 | ||
Potential costs and expenses incurred for compliance with directive | cannot be reasonably estimated | ||
Recertification Process Schedule Description | through September, 2014 | ||
Inspection cycle for tank cars in service minimum | 3 years | ||
Inspection cycle for tank cars in service maximum | 5 years | ||
Reserve for probable and estimable liabilities with respect to the investigations, assessments and remedial responses | $ 7.7 | $ 7.7 | |
Number of tank cars voluntarily recertified by Company | 948 |
Acquisitions and Divestitures (Details) (USD $) In Millions | 9 Months Ended | 3 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011
Construction Products Group [Member] | Sep. 30, 2011
Construction Products Group [Member] | |
Acquisitions: | ||||
Purchase price | $ 32.8 | $ 56.4 | ||
Net cash paid | 42.5 | 46.9 | 27.2 | 42.5 |
Goodwill recorded | 22.3 | 29.3 | ||
Divestitures: | ||||
Proceeds | 0 | 8.3 | ||
Gain recognized | 0 | 0.7 | ||
Goodwill charged off | $ 0 | $ 1.0 |
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information / Railcar Leasing and Management Services Group [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information from continuing operations for segments |
Three Months Ended September 30, 2010
Nine Months Ended September 30, 2011
Nine Months Ended September 30, 2010
|
Other, Net (Details) (USD $) In Millions | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | |
Other Net (Additional Textual) [Abstract] | ||||
Expense from the recognition of certain equity repurchase agreement with an investor in trip holding | $ 2.4 | $ 2.4 | ||
Other, net (income) expense | ||||
Foreign currency exchange transactions | 3.0 | 0.3 | 3.1 | 0.1 |
Loss (gain) on equity investments | (0.1) | (0.6) | 1.7 | |
Other | 2.4 | (0.1) | 1.7 | (0.7) |
Other, net | 5.3 | 0.2 | 4.2 | 1.1 |
Quixote Corporation [Member] | ||||
Other, Net (Textual) [Abstract] | ||||
Loss of the write-down of the Company's pre-acquisition investment in Quixote Corporation | $ 1.8 |
Debt (Details) (USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 | |||
---|---|---|---|---|---|
Components of debt | |||||
Less: unamortized discount | $ (102.7) | [1] | $ (111.1) | ||
Convertible subordinated notes, total | 347.3 | 338.9 | |||
Other | 4.4 | 2.8 | |||
Term loan | 55.4 | 57.4 | |||
Total Recourse Debt | 456.3 | [1] | 450.3 | ||
TRIP Holdings senior secured notes | |||||
Less: non-recourse debt owned by Trinity | (112.0) | 0 | |||
Total Non-recourse | 2,515.6 | 2,457.4 | |||
Total debt | 2,971.9 | [1] | 2,907.7 | ||
Manufacturing/Corporate Recourse [Member] | |||||
Components of debt | |||||
Revolving credit facility | 0 | 0 | |||
Convertible subordinated notes | 450.0 | 450.0 | |||
Less: unamortized discount | (102.7) | (111.1) | |||
Convertible subordinated notes, total | 347.3 | 338.9 | |||
Other | 4.4 | 2.8 | |||
Total Manufacturing/Corporate - Recourse Debt | 351.7 | 341.7 | |||
Leasing - Recourse [Member] | |||||
Components of debt | |||||
Capital lease obligations | 49.2 | 51.2 | |||
Term loan | 55.4 | 57.4 | |||
Leasing - Non-Recourse [Member] | |||||
Components of debt | |||||
2006 secured railcar equipment notes | 271.7 | 283.2 | |||
Promissory notes | 471.5 | 493.8 | |||
2009 secured railcar equipment notes | 220.9 | 229.2 | |||
2010 secured railcar equipment notes | 357.5 | 367.1 | |||
TILC warehouse facility | 280.7 | 80.2 | |||
TRIP Holdings senior secured notes | |||||
Total Outstanding | 175.0 | 0 | |||
Less: non-recourse debt owned by Trinity | (112.0) | 0 | |||
TRIP Holdings senior secured notes | 63.0 | 0 | |||
TRIP Master Funding secured railcar equipment notes | 850.3 | 0 | |||
TRIP warehouse loan | 0 | 1,003.9 | |||
Total Non-recourse | $ 2,515.6 | $ 2,457.4 | |||
|
Goodwill (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill by Segment |
|
Summary of Significant Accounting Policies (Details) (USD $) In Millions, except Share data | 3 Months Ended | 9 Months Ended | |
---|---|---|---|
Jun. 30, 2011 | Sep. 30, 2011 | Dec. 09, 2010 | |
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Repurchase program commenced for repurchases of authorized common stock shares | $ 200 | ||
Share repurchase program effective date | Jan. 01, 2011 | ||
Repurchase of common stock, shares | 0 | ||
Reclassification of purchase of additional interest in TRIP Holdings | $ 15.5 |
Investment in TRIP Holdings (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in TRIP Holdings [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Companies carrying value of its investment in TRIP |
|
Other, Net | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, Net |
Note 12. Other, Net
Other, net (income) expense consists of the following items:
Loss on equity investments for the nine months ended September 30, 2010 includes a $1.8 million
loss on the write-down of the Company’s pre-acquisition investment in Quixote Corporation. Other
includes $2.4 million in expense from the recognition of certain equity repurchase agreements with
an investor in TRIP Holdings at fair value. See Note 3 Fair Value Accounting and Note 6 Investment
in TRIP Holdings.
|
Derivative Instruments (Details 1) (USD $) In Millions | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | |
Interest Rate Locks, 2005 to 2006 [Member] | ||||
Interest rate hedges effect on interest expense - increase/(decrease) | ||||
Effect on interest expense - increase/(decrease) | $ (0.1) | $ (0.1) | $ (0.3) | $ (0.3) |
Expected effect during next twelve months | (0.3) | (0.3) | ||
Interest Rate Locks, 2006 to 2007 [Member] | ||||
Interest rate hedges effect on interest expense - increase/(decrease) | ||||
Effect on interest expense - increase/(decrease) | 0.9 | 0.9 | 2.7 | 2.8 |
Expected effect during next twelve months | 3.4 | 3.4 | ||
Interest Rate Locks, TRIP Holdings [Member] | ||||
Interest rate hedges effect on interest expense - increase/(decrease) | ||||
Effect on interest expense - increase/(decrease) | 1.8 | 7.2 | 15.9 | 22.0 |
Expected effect during next twelve months | 6.0 | 6.0 | ||
Interest Rate Swap, TILC Warehouse [Member] | ||||
Interest rate hedges effect on interest expense - increase/(decrease) | ||||
Effect on interest expense - increase/(decrease) | 0.1 | 0.5 | ||
Interest Rate Swap TRIP Rail Master Funding Secured Railcar Equipment Notes [Member] | ||||
Interest rate hedges effect on interest expense - increase/(decrease) | ||||
Effect on interest expense - increase/(decrease) | 0.5 | 0.5 | ||
Expected effect during next twelve months | 1.8 | 1.8 | ||
Interest Rate Swap, 2008 Debt Issuance [Member] | ||||
Interest rate hedges effect on interest expense - increase/(decrease) | ||||
Effect on interest expense - increase/(decrease) | 4.6 | 4.5 | 14.3 | 15.2 |
Expected effect during next twelve months | $ 17.6 | $ 17.6 |
Stock- Based Compensation (Details) (USD $) In Millions | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | |
Stock- Based Compensation (Textual) [Abstract] | ||||
Total stock-based compensation (approximately) | $ 6.9 | $ 4.3 | $ 16.3 | $ 11.3 |
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