Property, Plant, and Equipment

12 Months Ended

Dec. 31, 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 December 31, 2011 and 2010.

	December 31, 2011			December 31, 2010
	(in millions)
Manufacturing/Corporate:
Land	$	41.6		$	40.9
Buildings and improvements		429.7			418.4
Machinery and other		758.7			699.7
Construction in progress		12.8			9.7
		1,242.8			1,168.7
Less accumulated depreciation		(732.8	)		(677.3	)
		510.0			491.4
Leasing:
Wholly-owned subsidiaries:
Machinery and other		9.6			38.2
Equipment on lease		3,429.3			3,249.8
		3,438.9			3,288.0
Less accumulated depreciation		(372.9	)		(322.6	)
		3,066.0			2,965.4
TRIP Holdings:
Equipment on lease		1,257.7			1,282.1
Less accumulated depreciation		(122.7	)		(90.3	)
		1,135.0			1,191.8
Net deferred profit on railcars sold to the Leasing Group
Sold to wholly-owned subsidiaries		(344.5	)		(340.4	)
Sold to TRIP Holdings		(187.0	)		(196.2	)
	$	4,179.5		$	4,112.0

We lease certain equipment and facilities under operating leases. Future minimum rent expense on non-Leasing Group leases in each year is (in millions): 2012 — $4.3; 2013 — $2.4; 2014 — $1.7; 2015 — $1.3; 2016 — $1.0; and $1.9 thereafter. See Note 5 Railcar Leasing and Management Services Group for information related to the lease agreements, future operating lease obligations, and future minimum rent expense associated with the Leasing Group.

We did not capitalize any interest expense as part of the construction of facilities and equipment during 2011 or 2010.

In May 2011 and May 2010, the Company’s inland barge manufacturing facilities in Missouri and Tennessee, respectively, experienced floods resulting in significant damages to Trinity’s property and temporary disruptions of its production activities. The Company is insured against losses due to property damage and business interruption subject to certain deductibles. With respect to the Missouri flood, Trinity received $35 million in payments from its insurance carriers of which $22.7 million pertained to the replacement of or repairs to damaged property, plant, and equipment with a net book value of $5.7 million, with the remainder pertaining primarily to the reimbursement of flood-related expenses and lost production. Accordingly, the Company recognized a gain of $17.0 million in the fourth quarter of 2011 from the disposition of flood-damaged property, plant, and equipment. With respect to the Tennessee flood, Trinity received $27.5 million in payments from its insurance carrier of which $12.6 million pertained to the replacement of or repairs to damaged property, plant, and equipment with a net book value of $2.3 million, with the remainder pertaining primarily to the reimbursement of flood-related expenses. Accordingly, the Company recognized a gain of $9.7 million in 2010 and $0.6 million in 2011 from the disposition of flood-damaged property, plant, and equipment.

We estimate the fair market value of properties no longer in use or held for sale based on the location and condition of the properties, the fair market value of similar properties in the area, and the Company’s experience selling similar properties in the past. As of December 31, 2011, the Company had non-operating plants with a net book value of $4.3 million. Our estimated fair value of these assets exceeds their book value.