10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)
☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2022

	OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________ .

Commission File Number 1-6903

(Exact name of registrant as specified in its charter)

Delaware		75-0225040
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
14221 N. Dallas Parkway, Suite 1100
Dallas,	Texas	75254-2957
(Address of principal executive offices)		(Zip Code)

(214) 631-4420

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	TRN	New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes þ  No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes þ   No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ Accelerated filer ¨ Non-accelerated filer ¨

Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No þ

At October 18, 2022, the number of shares of common stock, $0.01 par value, outstanding was 81,403,369.

TRINITY INDUSTRIES, INC.

FORM 10-Q

TABLE OF CONTENTS

Caption	Page
PART I FINANCIAL INFORMATION
Item 1. Financial Statements	3
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3. Quantitative and Qualitative Disclosures About Market Risk	54
Item 4. Controls and Procedures	54
PART II OTHER INFORMATION
Item 1. Legal Proceedings	55
Item 1A. Risk Factors	55
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	55
Item 3. Defaults Upon Senior Securities	55
Item 4. Mine Safety Disclosures	55
Item 5. Other Information	55
Item 6. Exhibits	56
SIGNATURES	57

2

PART I

Item 1. Financial Statements

Trinity Industries, Inc. and Subsidiaries

Consolidated Statements of Operations

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions, except per share amounts)
Revenues:
Manufacturing	$	302.0	$	234.5	$	813.5	$	490.2
Leasing	194.6		185.3		572.6		553.6
	496.6		419.8		1,386.1		1,043.8
Operating costs:
Cost of revenues:
Manufacturing	288.0		238.8		804.4		488.0
Leasing	107.3		98.6		315.0		297.8
	395.3		337.4		1,119.4		785.8
Selling, engineering, and administrative expenses:
Manufacturing	8.7		8.3		25.4		25.4
Leasing	14.2		11.6		39.6		36.1
Other	25.1		25.9		72.7		75.2
	48.0		45.8		137.7		136.7
Gains on dispositions of property:
Lease portfolio sales	34.3		32.9		73.0		45.7
Other	5.1		8.7		19.5		19.5
	39.4		41.6		92.5		65.2
Restructuring activities, net	—		(0.1)		1.0		(1.1)
Total operating profit	92.7		78.3		220.5		187.6
Other (income) expense:
Interest expense, net	55.0		45.2		148.2		147.5
Loss on extinguishment of debt	—		—		1.5		11.7
Other, net	(0.6)		(0.7)		(2.7)		1.3
	54.4		44.5		147.0		160.5
Income from continuing operations before income taxes	38.3		33.8		73.5		27.1
Provision (benefit) for income taxes:
Current	(2.6)		0.5		1.2		5.7
Deferred	11.2		7.8		16.2		3.7
	8.6		8.3		17.4		9.4
Income from continuing operations	29.7		25.5		56.1		17.7
Income (loss) from discontinued operations, net of provision (benefit) for income taxes of $(1.0), $3.6, $(3.5), and $8.0	(3.4)		10.4		(13.7)		24.3
Loss on sale of discontinued operations, net of benefit for income taxes of $—, $—, $1.4, and $—	—		—		(5.7)		—
Net income	26.3		35.9		36.7		42.0
Net income (loss) attributable to noncontrolling interest	0.5		3.9		7.9		(6.0)
Net income attributable to Trinity Industries, Inc.	$	25.8	$	32.0	$	28.8	$	48.0
Basic earnings per common share:
Income from continuing operations	$	0.36	$	0.22	$	0.59	$	0.23
Income (loss) from discontinued operations	(0.04)		0.11		(0.24)		0.23
Basic net income attributable to Trinity Industries, Inc.	$	0.32	$	0.33	$	0.35	$	0.46
Diluted earnings per common share:
Income from continuing operations	$	0.35	$	0.22	$	0.57	$	0.22
Income (loss) from discontinued operations	(0.04)		0.11		(0.23)		0.23
Diluted net income attributable to Trinity Industries, Inc.	$	0.31	$	0.33	$	0.34	$	0.45
Weighted average number of shares outstanding:
Basic	81.7		97.7		82.3		103.4
Diluted	83.3		99.5		84.4		105.7

See accompanying notes to Consolidated Financial Statements.

3

Trinity Industries, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Net income	$	26.3	$	35.9	$	36.7	$	42.0
Other comprehensive income (loss):
Derivative financial instruments:
Unrealized gains (losses) arising during the period, net of tax benefit (expense) of $(3.0), $0.2, $(8.4), and $(1.5)	10.0		(0.8)		26.8		5.0
Reclassification adjustments for losses included in net income, net of tax benefit (expense) of $(0.1), $0.3, $1.2, and $0.6	0.2		1.8		4.6		2.9
Defined benefit plans:
Amortization of net actuarial losses, net of tax benefit of $—, $—, $—, and $0.1	0.1		—		0.2		0.1
Currency translation adjustments:
Reclassification adjustments for losses included in discontinued operations, net of tax benefit of $—, $—, $—, and $—	—		—		1.3		—
	10.3		1.0		32.9		8.0
Comprehensive income	36.6		36.9		69.6		50.0
Less: comprehensive income (loss) attributable to noncontrolling interest	0.8		4.2		7.4		(5.0)
Comprehensive income attributable to Trinity Industries, Inc.	$	35.8	$	32.7	$	62.2	$	55.0

See accompanying notes to Consolidated Financial Statements.

4

Trinity Industries, Inc. and Subsidiaries

Consolidated Balance Sheets

	September 30, 2022		December 31, 2021
	(unaudited)
	(in millions)
ASSETS
Cash and cash equivalents	$	58.5	$	167.3
Receivables, net of allowance	280.2		227.6
Income tax receivable	11.0		5.4
Inventories:
Raw materials and supplies	481.7		278.4
Work in process	150.0		91.6
Finished goods	54.8		62.9
	686.5		432.9
Restricted cash, including partially-owned subsidiaries of $63.1 and $58.6	180.2		135.1
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,920.5 and $1,927.7	9,244.8		9,105.6
Less accumulated depreciation, including partially-owned subsidiaries of $591.8 and $568.4	(2,351.0)		(2,258.7)
	6,893.8		6,846.9
Goodwill	159.5		154.2
Other assets	329.4		266.5
Total assets	$	8,599.1	$	8,235.9
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	286.6	$	206.4
Accrued liabilities	288.9		307.4
Debt:
Recourse	459.0		398.7
Non-recourse:
Wholly-owned subsidiaries	3,844.5		3,555.8
Partially-owned subsidiaries	1,190.2		1,216.1
	5,493.7		5,170.6
Deferred income taxes	1,128.5		1,106.8
Other liabilities	140.3		147.9
Total liabilities	7,338.0		6,939.1
Preferred stock – 1.5 shares authorized and unissued	—		—
Common stock – 400.0 shares authorized	0.8		0.8
Capital in excess of par value	6.1		—
Retained earnings	997.7		1,046.6
Accumulated other comprehensive income (loss)	16.4		(17.0)
Treasury stock	(15.1)		(0.6)
	1,005.9		1,029.8
Noncontrolling interest	255.2		267.0
Total stockholders' equity	1,261.1		1,296.8
Total liabilities and stockholders' equity	$	8,599.1	$	8,235.9

See accompanying notes to Consolidated Financial Statements.

5

Trinity Industries, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(unaudited)

	Nine Months Ended September 30,
	2022		2021
	(in millions)
Operating activities:
Net income	$	36.7	$	42.0
(Income) loss from discontinued operations, net of income taxes	13.7		(24.3)
Loss on sale of discontinued operations, net of income taxes	5.7		—
Adjustments to reconcile net income to net cash provided by (used in) operating activities – continuing operations:
Depreciation and amortization	206.0		200.4
Stock-based compensation expense	16.7		15.2
Provision (benefit) for deferred income taxes	16.2		3.7
Net gains on lease portfolio sales	(71.7)		(45.7)
Gains on dispositions of property and other assets	(12.0)		(16.4)
Gains on insurance recoveries from property damage	(7.5)		(4.7)
Non-cash interest expense	10.2		10.3
Loss on extinguishment of debt	1.5		11.7
Other	(4.8)		6.9
Changes in operating assets and liabilities:
(Increase) decrease in receivables	(51.9)		(31.5)
(Increase) decrease in income tax receivable	(5.6)		249.8
(Increase) decrease in inventories	(253.6)		(64.2)
(Increase) decrease in other assets	(19.9)		6.7
Increase (decrease) in accounts payable	78.9		43.7
Increase (decrease) in accrued liabilities	(4.6)		14.7
Increase (decrease) in other liabilities	(6.6)		0.5
Net cash provided by (used in) operating activities – continuing operations	(52.6)		418.8
Net cash provided by (used in) operating activities – discontinued operations	(15.4)		8.4
Net cash provided by (used in) operating activities	(68.0)		427.2
Investing activities:
Proceeds from dispositions of property and other assets	33.2		34.3
Proceeds from lease portfolio sales	514.8		404.5
Capital expenditures – leasing	(691.1)		(363.9)
Capital expenditures – manufacturing and other	(25.7)		(16.9)
Acquisitions, net of cash acquired	(9.4)		(16.5)
Proceeds from insurance recoveries	7.6		6.5
Equity investments	(15.5)		(0.2)
Net cash provided by (used in) investing activities – continuing operations	(186.1)		47.8
Payments related to sale of discontinued operations	(2.7)		—
Net cash used in investing activities – discontinued operations	—		(4.2)
Net cash provided by (used in) investing activities	(188.8)		43.6
Financing activities:
Payments to retire debt	(1,351.5)		(2,256.8)
Proceeds from issuance of debt	1,664.5		2,393.7
Shares repurchased	(36.8)		(406.5)
Dividends paid to common shareholders	(58.3)		(68.5)
Purchase of shares to satisfy employee tax on vested stock	(5.6)		(9.2)
Distributions to noncontrolling interest	(19.2)		(6.8)
Net cash provided by (used in) financing activities	193.1		(354.1)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(63.7)		116.7
Cash, cash equivalents, and restricted cash at beginning of period	302.4		228.4
Cash, cash equivalents, and restricted cash at end of period	$	238.7	$	345.1

See accompanying notes to Consolidated Financial Statements.

6

Trinity Industries, Inc. and Subsidiaries

Consolidated Statements of Stockholders' Equity

(unaudited)

	Common Stock			Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock			Trinity Stockholders’ Equity		Noncontrolling Interest		Total Stockholders’ Equity
	Shares	$0.01 Par Value								Shares	Amount
	(in millions, except par value and per common share amounts)
Balances at    December 31, 2021	83.3	$	0.8	$	—	$	1,046.6	$	(17.0)	—	$	(0.6)	$	1,029.8	$	267.0	$	1,296.8
Net income (loss)	—	—		—		(0.7)		—		—	—		(0.7)		2.6		1.9
Other comprehensive income	—	—		—		—		17.1		—	—		17.1		0.2		17.3
Cash dividends declared on common stock (1)	—	—		—		(19.3)		—		—	—		(19.3)		—		(19.3)
Distributions to noncontrolling interest	—	—		—		—		—		—	—		—		(6.2)		(6.2)
Stock-based compensation expense	—	—		5.1		—		—		—	—		5.1		—		5.1
Settlement of share-based awards, net	—	—		0.2		—		—		—	(0.2)		—		—		—
Balances at    March 31, 2022	83.3	$	0.8	$	5.3	$	1,026.6	$	0.1	—	$	(0.8)	$	1,032.0	$	263.6	$	1,295.6
Net income	—	—		—		3.7		—		—	—		3.7		4.8		8.5
Other comprehensive income (loss)	—	—		—		—		6.3		—	—		6.3		(1.0)		5.3
Cash dividends declared on common stock (1)	—	—		—		(19.1)		—		—	—		(19.1)		—		(19.1)
Distributions to noncontrolling interest	—	—		—		—		—		—	—		—		(8.8)		(8.8)
Stock-based compensation expense	—	—		5.7		—		—		—	—		5.7		—		5.7
Settlement of share-based awards, net	0.8	—		0.4		—		—		(0.2)	(6.1)		(5.7)		—		(5.7)
Shares repurchased	—	—		—		—		—		(1.0)	(25.3)		(25.3)		—		(25.3)
Accelerated share repurchase agreement	—	—		25.0		—		—		(0.8)	(25.0)		—		—		—
Retirement of treasury stock	(2.0)	—		(36.4)		(20.1)		—		2.0	56.5		—		—		—
Balances at    June 30, 2022	82.1	$	0.8	$	—	$	991.1	$	6.4	—	$	(0.7)	$	997.6	$	258.6	$	1,256.2
Net income	—	—		—		25.8		—		—	—		25.8		0.5		26.3
Other comprehensive income	—	—		—		—		10.0		—	—		10.0		0.3		10.3
Cash dividends declared on common stock (1)	—	—		—		(19.2)		—		—	—		(19.2)		—		(19.2)
Distributions to noncontrolling interest	—	—		—		—		—		—	—		—		(4.2)		(4.2)
Stock-based compensation expense	—	—		5.9		—		—		—	—		5.9		—		5.9
Settlement of share-based awards, net	—	—		0.2		—		—		—	(0.3)		(0.1)		—		(0.1)
Shares repurchased	—	—		—		—		—		(0.6)	(14.1)		(14.1)		—		(14.1)
Balances at    September 30, 2022	82.1	$	0.8	$	6.1	$	997.7	$	16.4	(0.6)	$	(15.1)	$	1,005.9	$	255.2	$	1,261.1

(1) Dividends of $0.23 per common share for all periods presented in 2022.

7

	Common Stock			Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock			Trinity Stockholders’ Equity		Noncontrolling Interest		Total Stockholders’ Equity
	Shares	$0.01 Par Value								Shares	Amount
	(in millions, except par value and per common share amounts)
Balances at    December 31, 2020	111.2	$	1.1	$	—	$	1,769.4	$	(30.9)	(0.1)	$	(0.8)	$	1,738.8	$	277.2	$	2,016.0
Net income (loss)	—	—		—		3.3		—		—	—		3.3		(2.0)		1.3
Other comprehensive income	—	—		—		—		5.1		—	—		5.1		0.3		5.4
Cash dividends declared on common stock (1)	—	—		—		(23.3)		—		—	—		(23.3)		—		(23.3)
Stock-based compensation expense	—	—		5.1		—		—		—	—		5.1		—		5.1
Settlement of share-based awards, net	—	—		1.0		—		—		—	(0.8)		0.2		—		0.2
Shares repurchased	—	—		—		—		—		(1.3)	(36.8)		(36.8)		—		(36.8)
Balances at    March 31, 2021	111.2	$	1.1	$	6.1	$	1,749.4	$	(25.8)	(1.4)	$	(38.4)	$	1,692.4	$	275.5	$	1,967.9
Net income (loss)	—	—		—		12.7		—		—	—		12.7		(7.9)		4.8
Other comprehensive income	—	—		—		—		1.2		—	—		1.2		0.4		1.6
Cash dividends declared on common stock (1)	—	—		—		(21.0)		—		—	—		(21.0)		—		(21.0)
Stock-based compensation expense	—	—		4.1		—		—		—	—		4.1		—		4.1
Settlement of share-based awards, net	1.1	—		0.4		—		—		(0.3)	(9.1)		(8.7)		—		(8.7)
Shares repurchased	—	—		—		—		—		(10.5)	(290.8)		(290.8)		—		(290.8)
Retirement of treasury stock	(12.2)	(0.1)		(10.6)		(327.0)		—		12.2	337.7		—		—		—
Balances at    June 30, 2021	100.1	$	1.0	$	—	$	1,414.1	$	(24.6)	—	$	(0.6)	$	1,389.9	$	268.0	$	1,657.9
Net income	—	—		—		32.0		—		—	—		32.0		3.9		35.9
Other comprehensive income	—	—		—		—		0.7		—	—		0.7		0.3		1.0
Cash dividends declared on common stock (1)	—	—		—		(20.9)		—		—	—		(20.9)		—		(20.9)
Distributions to noncontrolling interest	—	—		—		—		—		—	—		—		(6.8)		(6.8)
Stock-based compensation expense	—	—		6.0		—		—		—	—		6.0		—		6.0
Settlement of share-based awards, net	0.1	—		0.9		—		—		(0.1)	(0.5)		0.4		—		0.4
Shares repurchased	—	—		—		—		—		(2.8)	(77.1)		(77.1)		—		(77.1)
Balances at    September 30, 2021	100.2	$	1.0	$	6.9	$	1,425.2	$	(23.9)	(2.9)	$	(78.2)	$	1,331.0	$	265.4	$	1,596.4

(1) Dividends of $0.21 per common share for all periods presented in 2021.

See accompanying notes to Consolidated Financial Statements.

8

Trinity Industries, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(Unaudited)

Note 1. Summary of Significant Accounting Policies

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 consolidated subsidiaries (“Trinity,” “Company,” “we,” “our,” or "us") including the accounts of our wholly-owned subsidiaries and partially-owned subsidiaries, TRIP Rail Holdings LLC (“TRIP Holdings”) and RIV 2013 Rail Holdings LLC ("RIV 2013"), in which we have a controlling interest. In our opinion, all normal and recurring adjustments necessary for a fair presentation of our financial position as of September 30, 2022, the results of operations for the three and nine months ended September 30, 2022 and 2021, and cash flows for the nine months ended September 30, 2022 and 2021, have been made in conformity with generally accepted accounting principles. All significant intercompany accounts and transactions have been eliminated. Certain prior year balances have been reclassified to conform to the 2022 presentation.

Due to seasonal and other factors, including the ongoing impacts of the coronavirus pandemic (“COVID-19”), the results of operations for the nine months ended September 30, 2022 may not be indicative of expected results of operations for the year ending December 31, 2022. These interim financial statements and notes are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with our audited Consolidated Financial Statements included in our Form 10-K for the year ended December 31, 2021.

Sale of Highway Products Business

In the fourth quarter of 2021, the Company completed the sale of Trinity Highway Products, LLC (“THP”), a wholly-owned subsidiary of the Company, and certain direct and indirect subsidiaries of THP, to Rush Hour Intermediate II, LLC ("Rush Hour"), an entity owned by an affiliated investment fund of Monomoy Capital Partners, for an aggregate purchase price of $375.0 million, subject to a final working capital adjustment, which was recorded in the second quarter of 2022.

We concluded that the sale of THP represented a strategic shift that will have a major effect on the Company’s operations and financial results. Accordingly, we have presented the operating results and cash flows of THP as discontinued operations for all periods in this Quarterly Report on Form 10-Q. Results of prior periods have been recast to reflect these changes and present results on a comparable basis. See Note 2 for further information related to the sale of THP.

Revenue Recognition

Revenue is measured based on the allocation of the transaction price in a contract to satisfied performance obligations. The transaction price does not include any amounts collected on behalf of third parties. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer. Payments for our products and services are generally due within normal commercial terms. The following is a description of principal activities from which we generate our revenue, separated by reportable segments. See Note 4 for a further discussion regarding our reportable segments.

Railcar Leasing and Management Services Group

In our Railcar Leasing and Management Services Group ("Leasing Group"), revenue from rentals and operating leases, including contracts that contain non-level fixed lease payments, is recognized monthly on a straight-line basis. Leases not classified as operating leases are generally considered sales-type leases as a result of an option to purchase.

We review our operating lease receivables for collectibility on a regular basis, taking into consideration changes in factors such as the lessee’s payment history, the financial condition of the lessee, and business and economic conditions in the industry in which the lessee operates. In the event that the collectibility of a receivable with respect to any lessee is no longer probable, we derecognize the revenue and related receivable and recognize future revenue only when the lessee makes a rental payment. Contingent rents are recognized when the contingency is resolved.

Selling profit or loss associated with sales-type leases is recognized upon lease commencement, and a net investment in the sales-type lease is recorded in the Consolidated Balance Sheets. Interest income related to sales-type leases is recognized over the lease term using the effective interest method. See "Lease Accounting" below for additional information regarding sales-type leases as of September 30, 2022. We had no sales-type leases as of December 31, 2021.

9

We report all sales of railcars from the lease fleet and selling profit or loss associated with sales-type leases as a net gain or loss from the disposal of a long-term asset in accordance with ASC 610-20, Gains and losses from the derecognition of non-financial assets. These sales are presented in the Lease portfolio sales line in our Consolidated Statements of Operations.

We account for shipping and handling costs as activities to fulfill the promise to transfer the good; as such, these fees are recorded in revenue. The fees and costs of shipping and handling activities are accrued when the related performance obligation has been satisfied.

Rail Products Group

Our railcar manufacturing business recognizes revenue related to new railcars when the customer has submitted its certificate of acceptance and legal title of the railcar has passed to the customer. Certain contracts for the sales of railcars include price adjustments based on steel-price indices; this amount represents variable consideration for which we are unable to estimate the final consideration until the railcar is delivered.

Revenue is recognized over time as repair and maintenance projects and sustainable railcar conversions are completed, using an input approach based on the costs incurred relative to the total estimated costs of performing the project. We recorded contract assets of $3.0 million and $4.5 million as of September 30, 2022 and December 31, 2021, respectively, related to unbilled revenues recognized on repair and maintenance services and sustainable railcar conversions that have been performed, but for which the entire project has not yet been completed, and the railcar has not yet been shipped to the customer. These contract assets are included within the Receivables, net of allowance line in our Consolidated Balance Sheets.

Unsatisfied Performance Obligations

The following table includes estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially satisfied as of September 30, 2022 and the percentage of the outstanding performance obligations as of September 30, 2022 expected to be delivered during the remainder of 2022:

	Unsatisfied performance obligations at September 30, 2022
	Total Amount		Percent expected to be delivered in 2022
	(in millions)
Rail Products Group:
New railcars:
External customers (1)	$	3,573.7
Leasing Group	517.2
	$	4,090.9	16.2	%
Sustainable railcar conversions	$	201.4	26.5	%
Railcar Leasing and Management Services Group	$	133.6	6.8	%

(1) Unsatisfied performance obligations at September 30, 2022 include 15,000 railcars expected to be delivered through 2028, valued at approximately $1.8 billion, associated with a new long-term railcar supply agreement with GATX Corporation.

The remainder of the unsatisfied performance obligations for the Rail Products Group is expected to be delivered through 2028. The orders in the Rail Products Group's backlog from the Leasing Group are fully supported by lease commitments with external customers. The final amount of backlog attributable to the Leasing Group may vary by the time of delivery as customers may elect to change their procurement decision.

Unsatisfied performance obligations for the Railcar Leasing and Management Services Group are related to servicing, maintenance, and management agreements and are expected to be performed through 2029.

10

Lease Accounting

Lessee

We are the lessee of operating leases predominantly for office buildings and railcars, as well as manufacturing equipment and office equipment. Our operating leases have remaining lease terms ranging from one year to fifteen years, some of which include options to extend for up to five years, and some of which include options to terminate within one year. As of September 30, 2022, we had no material finance leases in which we were the lessee. As applicable, the lease liability is reduced by the amount of lease incentives that have not yet been reimbursed by the lessor.

The following table summarizes the impact of our operating leases on our Consolidated Financial Statements (in millions, except lease term and discount rate):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022			2021
Consolidated Statements of Operations
Operating lease expense	$	4.6	$	4.0	$	13.5		$	11.3
Short-term lease expense	$	0.1	$	—	$	0.3		$	0.2
Consolidated Statements of Cash Flows
Cash flows from operating activities					$	13.5		$	11.3
Right-of-use assets recognized in exchange for new lease liabilities					$	21.0		$	23.7
					September 30, 2022			December 31, 2021
Consolidated Balance Sheets
Right-of-use assets (1)					$	89.9		$	82.8
Lease liabilities (2)					$	112.1		$	106.3
Weighted average remaining lease term					10.0 years			10.8 years
Weighted average discount rate					2.8		%	3.0		%

(1) Included in other assets in our Consolidated Balance Sheets.

(2) Included in other liabilities in our Consolidated Balance Sheets.

Future contractual minimum operating lease liabilities will mature as follows (in millions):

	Leasing Group		Non-Leasing Group		Total
Remaining three months of 2022	$	3.2	$	2.1	$	5.3
2023	12.0		7.9		19.9
2024	8.0		6.9		14.9
2025	6.0		6.1		12.1
2026	5.7		5.7		11.4
Thereafter	8.7		57.8		66.5
Total operating lease payments	$	43.6	$	86.5	$	130.1
Less: Present value adjustment					(18.0)
Total operating lease liabilities					$	112.1

Lessor

Our Leasing Group enters into railcar operating leases with third parties with terms generally ranging between one year and ten years. The majority of our fleet operates on leases that earn fixed monthly lease payments. Generally, lease payments are due at the beginning of the applicable month. A portion of our fleet operates on per diem leases that earn usage-based variable lease payments. Some of our leases include options to extend the leases for up to five years, and a small percentage of our leases include early termination options with certain notice requirements and early termination penalties. As of September 30, 2022, non-Leasing Group operating leases were not significant, and we had no direct finance leases.

11

We manage risks associated with residual values of leased railcars by investing across a diverse portfolio of railcar types, staggering lease maturities within any given railcar type, avoiding concentration of railcar type and industry, and actively participating in secondary markets. Additionally, our lease agreements contain normal wear and tear return condition provisions and high mileage thresholds designed to protect the value of our residual assets. Our lease agreements do not contain any material residual value guarantees or restrictive covenants.

The following table summarizes the impact of our leases on our Consolidated Statements of Operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Operating lease revenues	$	167.2	$	158.2	$	500.5	$	486.2
Variable operating lease revenues	$	17.7	$	18.8	$	49.0	$	44.7
Interest income on sales-type lease receivables	$	0.2	$	—	$	0.5	$	—
Profit recognized at sales-type lease commencement (1)	$	—	$	—	$	1.3	$	—

(1) Included in gains on dispositions of property – lease portfolio sales on our Consolidated Statements of Operations.

Future contractual minimum revenues for operating leases will mature as follows (in millions)(1):

Remaining three months of 2022	$	156.7
2023	519.9
2024	406.0
2025	307.4
2026	220.0
Thereafter	369.4
Total	$	1,979.4

(1) Total contractual minimum rental revenues on operating leases relates to our wholly-owned and partially-owned subsidiaries and sub-lease rental revenues associated with the Leasing Group's operating lease obligations.

Future contractual minimum lease receivables for sales-type leases will mature as follows (in millions)(1):

Remaining three months of 2022	$	0.3
2023	1.1
2024	1.1
2025	1.1
2026	1.1
Thereafter	11.2
Total	15.9
Less: Unearned interest income	(5.2)
Net investment in sales-type leases (1)	$	10.7

(1) Included in other assets in our Consolidated Balance Sheets.

Financial Instruments

We consider all highly liquid debt instruments to be either cash and cash equivalents if purchased with a maturity of three months or less, or short-term marketable securities if purchased with a maturity of more than three months and less than one year.

Financial instruments that potentially subject us to a concentration of credit risk are primarily cash investments, including restricted cash and receivables. We place our cash investments in bank deposits, investment grade, short-term debt instruments, and highly-rated commercial paper. We limit the amount of credit exposure to any one commercial issuer. The carrying values of cash, receivables, and accounts payable are considered to be representative of their respective fair values.

12

Concentrations of credit risk with respect to receivables are limited due to control procedures that monitor the credit worthiness of customers, the large number of customers in our customer base, and their dispersion across different end markets and geographic areas. Receivables are generally evaluated at a portfolio level based on these characteristics. As receivables are generally unsecured, we maintain an allowance for credit losses using a forward-looking approach based on historical losses and consideration of current and expected future economic conditions. Historically, we have observed that the likelihood of loss increases when receivables have aged beyond 180 days. When a receivable is deemed uncollectible, the write-off is recorded as a reduction to allowance for credit losses. During the nine months ended September 30, 2022, we recognized approximately $1.7 million of credit loss expense and wrote off $1.9 million related to our trade receivables that are in the scope of ASC 326, Financial Instruments – Credit Losses, bringing the allowance for credit losses balance from $10.5 million at December 31, 2021 to $10.3 million at September 30, 2022. This balance excludes the general reserve for operating lease receivables that is permitted under ASC 450, Contingencies.

Acquisitions

In June 2022, the Leasing Group acquired, from an unrelated seller, a portfolio of railcars for $132.1 million in cash. This transaction was recorded as an asset acquisition within the Leasing Group, based on valuations of the acquired assets and liabilities at their acquisition date fair value using Level 3 inputs. As a result of the purchase transaction, the Leasing Group acquired approximately 3,800 railcars, substantially all of which are currently under lease to third parties. We recorded acquired railcars of $125.0 million, lease-related intangible assets of $7.8 million, and certain other immaterial assets and liabilities in our Consolidated Balance Sheet as of the purchase date.

In May 2022, we completed the acquisition of a company that owns and operates an end-to-end rail logistics software platform providing a real-time data universe to freight rail shippers and operators. This transaction was recorded as a business combination within the Leasing Group, based on valuations of the acquired assets and liabilities at their acquisition date fair value using Level 3 inputs. The acquisition did not have a significant impact on our Consolidated Financial Statements. Based on our preliminary purchase price allocation, we recorded intellectual property of $5.2 million, which will be amortized over five years, goodwill of $5.3 million, and certain other immaterial assets and liabilities.

In January 2021, we completed the acquisition of a company that owns and operates proprietary railcar cleaning technology systems. This transaction was recorded as a business combination within the Rail Products Group, based on valuations of the acquired assets and liabilities at their acquisition date fair value using Level 3 inputs. The acquisition did not have a significant impact on our Consolidated Financial Statements. This transaction resulted in goodwill of $7.0 million.

Goodwill

As of September 30, 2022 and December 31, 2021, the carrying amount of our goodwill totaled $159.5 million and $154.2 million, respectively, which is primarily attributable to the Rail Products Group.

Warranties

We provide various express, limited product warranties that generally range from one year to five years depending on the product. The warranty costs are estimated using a two-step approach. First, an engineering estimate is made for the cost of all claims that have been asserted by customers. Second, based on historical claims experience, a cost is accrued for all products still within a warranty period for which no claims have been filed. We provide for the estimated cost of product warranties at the time revenue is recognized related to products covered by warranties and assess the adequacy of the resulting reserves on a quarterly basis. The changes in the accruals for warranties for the three and nine months ended September 30, 2022 and 2021 are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Beginning balance	$	2.7	$	5.5	$	3.1	$	11.3
Warranty costs incurred	(0.4)		(3.4)		(2.5)		(6.2)
Warranty originations and revisions	0.9		1.6		3.1		(1.0)
Warranty expirations	(0.3)		(0.2)		(0.8)		(0.6)
Ending balance	$	2.9	$	3.5	$	2.9	$	3.5

13

Recent Accounting Pronouncements

ASU 2022-04 – In September 2022, the FASB issued ASU No. 2022-04, "Disclosure of Supplier Finance Program Obligations," which requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose information about the key terms of these programs, outstanding amounts as of the end of the reporting period, a description of where in the financial statements outstanding amounts are presented, and a rollforward of these obligations. ASU 2022-04 is effective for public companies during interim and annual reporting periods beginning after December 15, 2022 and is to be adopted on a retrospective basis, except for the disclosure of rollforward information, which is effective for public companies during interim and annual reporting periods beginning after December 15, 2023 and is to be adopted on a prospective basis. Early adoption is permitted. We plan to adopt ASU 2022-04 effective January 1, 2023 and are currently evaluating the impact these disclosures will have on our Consolidated Financial Statements.

Note 2. Discontinued Operations

Sale of Highway Products Business

In the fourth quarter of 2021, we completed the sale of our highway products business, THP. The sale closed on December 31, 2021, and we received net proceeds of approximately $364.7 million, after certain adjustments and closing costs. During the nine months ended September 30, 2022, we recorded a loss on sale of discontinued operations of $5.8 million ($4.4 million, net of income taxes), which included a $2.7 million payment to Rush Hour representing a final working capital adjustment, as well as additional transaction costs incurred during the period. There was no loss on sale of discontinued operations during the three months ended September 30, 2022. We concluded that the sale of THP represented a strategic shift that will have a major effect on the Company’s operations and financial results. Accordingly, we have presented the operating results and cash flows of THP as discontinued operations for all periods in this Quarterly Report on Form 10-Q.

In connection with the sale, Trinity and Rush Hour entered into various agreements to effect the transaction and provide a framework for their relationship after the separation, including a purchase and sale agreement, a transition services agreement, and a lease agreement. The transition services have various durations ranging between one and eighteen months. We have determined that the continuing cash flows generated by these agreements do not constitute significant continuing involvement in the operations of THP. The amounts billed for transition services were not material to our results of operations for the three and nine months ended September 30, 2022. Additionally, in connection with the sale of THP, the Company has agreed to indemnify Rush Hour for certain liabilities related to the highway products business, including certain liabilities resulting from or arising out of the ET-Plus® System, a highway guardrail end-terminal system (the “ET Plus”). Consequently, results from discontinued operations below include certain legal expenses that were directly attributable to the highway products business, which were previously reported in continuing operations. Similar expenses related to these retained obligations incurred during the three and nine months ended September 30, 2022, and that may be incurred in the future, will likewise be reported in discontinued operations. See Note 14 for further information regarding obligations retained in connection with the THP sale.

The following is a summary of THP's operating results included in income (loss) from discontinued operations for the three and nine months ended September 30, 2022 and 2021:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Revenues	$	—	$	83.7	$	—	$	230.0
Cost of revenues	—		60.4		—		165.2
Selling, engineering, and administrative expenses	4.4		9.3		17.2		32.5
Income (loss) from discontinued operations before income taxes	(4.4)		14.0		(17.2)		32.3
Provision (benefit) for income taxes	(1.0)		3.2		(3.5)		7.2
Income (loss) from discontinued operations, net of income taxes	$	(3.4)	$	10.8	$	(13.7)	$	25.1

14

Other discontinued operations

In addition to the THP activities disclosed above, results include certain amounts related to businesses previously disposed, including a $1.3 million of loss on sale of discontinued operations, net of income taxes for the nine months ended September 30, 2022 and losses of $0.4 million and $0.8 million included in income (loss) from discontinued operations, net of income taxes for the three and nine months ended September 30, 2021, respectively.

Note 3. Derivative Instruments and Fair Value Measurements

Derivative Instruments

We use derivative instruments to mitigate interest rate risk, including risks associated with the impact of changes in interest rates in anticipation of future debt issuances and to offset interest rate variability of certain floating rate debt issuances outstanding. We also use derivative instruments to mitigate the impact of changes in foreign currency exchange rates. Derivative instruments that are designated and qualify as cash flow hedges are accounted for by recording the effective portion of the gain or loss on the derivative instrument in accumulated other comprehensive income or loss ("AOCI") as a separate component of stockholders' equity. These accumulated gains or losses are reclassified into earnings in the periods during which the hedged transactions affect earnings. We continuously monitor our derivative positions and the credit ratings of our counterparties and do not anticipate losses due to non-performance. See Note 8 for a description of our debt instruments.

Interest Rate Hedges

					Included in accompanying balance sheet at September 30, 2022
							AOCI – loss/(income)
	Notional Amount		Interest Rate (1)		Asset/(Liability)		Controlling Interest		Noncontrolling Interest
	($ in millions)
Expired hedges:
2018 secured railcar equipment notes	$	249.3	4.41	%	$	—	$	0.5	$	—
TRIP Holdings warehouse loan	$	788.5	3.60	%	$	—	$	0.1	$	0.2
Tribute Rail secured railcar equipment notes (2)	$	256.0	2.86	%	$	—	$	0.9	$	1.1
2017 promissory notes – interest rate cap	$	169.3	3.00	%	$	—	$	(0.3)	$	—
Open hedge:
2017 promissory notes – interest rate swap	$	441.4	2.39	%	$	19.6	$	(19.6)	$	—

(1) Weighted average fixed interest rate, except for the interest rate cap on the 2017 promissory notes.

(2) In May 2022, Tribute Rail LLC ("Tribute Rail"), an indirect, wholly-owned subsidiary of TRIP Holdings, entered into and subsequently terminated a forward starting interest rate swap to hedge the risk of potential interest rate increases prior to the May 2022 Tribute Rail debt issuance.

	Effect on interest expense – increase/(decrease)
	Three Months Ended September 30,				Nine Months Ended September 30,				Expected effect during next twelve months
	2022		2021		2022		2021
	(in millions)
Expired hedges:
2018 secured railcar equipment notes	$	—	$	0.1	$	0.1	$	0.2	$	0.2
TRIP Holdings warehouse loan	$	0.3	$	0.4	$	1.0	$	1.4	$	0.3
Triumph Rail secured railcar equipment notes	$	—	$	—	$	—	$	0.1	$	—
Tribute Rail secured railcar equipment notes	$	0.1	$	—	$	0.2	$	—	$	0.7
2017 promissory notes – interest rate cap	$	(0.1)	$	(0.1)	$	(0.1)	$	(0.1)	$	(0.1)
Open hedge (1):
2017 promissory notes – interest rate swap	$	0.3	$	3.1	$	5.3	$	9.3	$	5.6

(1) Based on the fair value of open hedges as of September 30, 2022.

15

Foreign Currency Hedge

Our exposure related to foreign currency transactions is currently hedged for up to a maximum of twelve months. Information related to our foreign currency hedge is as follows:

		Included in  accompanying balance  sheet at September 30, 2022				Effect on cost of revenues – increase/(decrease)
Notional Amount		Asset/ (Liability)		AOCI – loss/(income)		Three Months Ended September 30,				Nine Months Ended September 30,				Expected effect during next twelve months (1)
						2022		2021		2022		2021
(in millions)
$	40.8	$	1.1	$	(1.6)	$	(0.5)	$	(1.4)	$	(0.7)	$	(7.4)	$	(1.6)

(1) Based on the fair value of open hedges as of September 30, 2022.

Fair Value Measurements

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 for 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 value are listed below.

Level 1 – This level is defined as quoted prices in active markets for identical assets or liabilities. Our cash equivalents and restricted cash are instruments of the U.S. Treasury or highly-rated money market mutual funds. The assets measured as Level 1 in the fair value hierarchy are summarized below:

	Level 1
	September 30, 2022		December 31, 2021
	(in millions)
Assets:
Cash equivalents	$	34.7	$	11.4
Restricted cash	180.2		135.1
Total assets	$	214.9	$	146.5

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. Interest rate hedges are valued at exit prices obtained from each counterparty. Foreign currency hedges are valued at exit prices obtained from each counterparty, which are based on currency spot and forward rates and forward points. The assets and liabilities measured as Level 2 in the fair value hierarchy are summarized below:

	Level 2
	September 30, 2022		December 31, 2021
	(in millions)
Assets:
Interest rate hedge (1)	$	19.6	$	—
Foreign currency hedge (1)	1.1		—
Total assets	$	20.7	$	—
Liabilities:
Interest rate hedge (2)	$	—	$	21.0
Foreign currency hedge (2)	—		0.1
Total liabilities	$	—	$	21.1

(1) Included in other assets in our Consolidated Balance Sheets.

(2) Included in accrued liabilities in our Consolidated Balance Sheets.

16

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. As of September 30, 2022 and December 31, 2021, we have no assets measured on a recurring basis as Level 3 in the fair value hierarchy.

See Note 1 for more information regarding non-recurring fair value measurements involving Level 3 inputs resulting from acquisition activity. See Note 8 for the estimated fair values of our debt instruments. The fair values of all other financial instruments are estimated to approximate carrying value.

Note 4. Segment Information

We report our operating results in two reportable segments: (1) the Railcar Leasing and Management Services Group, which owns and operates a fleet of railcars and provides third-party fleet leasing, management, and administrative services; and (2) the Rail Products Group, which manufactures and sells railcars and related parts and components, and provides railcar maintenance and modification services. Following the sale of THP, which was previously reported within All Other, we have combined the results of the prior Corporate and All Other groupings into a single Corporate and other grouping. The remaining activity previously reported in All Other primarily includes legal, environmental, and maintenance costs associated with non-operating facilities. Results of prior periods have been recast to reflect these changes and present results on a comparable basis.

Gains and losses from the sale of property, plant, and equipment are included in the operating profit of each respective segment. Our Chief Operating Decision Maker ("CODM") regularly reviews the operating results of our reportable segments in order to assess performance and allocate resources. Our CODM does not consider restructuring activities when evaluating segment operating results; therefore, restructuring activities are not allocated to segment profit or loss.

Sales and related net profits ("deferred profit") from the Rail Products Group to the Leasing Group are recorded in the Rail Products Group and eliminated in consolidation and are reflected in "Eliminations – Lease Subsidiary" in the tables below. 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 profit of the Leasing Group, resulting in the recognition of depreciation expense based on our original manufacturing cost of the railcars. Lease portfolio sales are included in the Leasing Group, with related gains and losses computed based on the net book value of the original manufacturing cost of the railcars.

The financial information for these segments is shown in the tables below (in millions). We operate principally in North America.

	Three Months Ended September 30, 2022
	Railcar Leasing and Management Services Group		Rail Products Group		Eliminations – Lease Subsidiary		Eliminations – Other		Consolidated Total
External revenue	$	194.6	$	302.0	$	—	$	—	$	496.6
Intersegment revenue	0.2		295.3		(295.3)		(0.2)		—
Total revenues	$	194.8	$	597.3	$	(295.3)	$	(0.2)	$	496.6

	Three Months Ended September 30, 2021
	Railcar Leasing and Management Services Group		Rail Products Group		Eliminations – Lease Subsidiary		Eliminations – Other		Consolidated Total
External revenue	$	185.3	$	234.5	$	—	$	—	$	419.8
Intersegment revenue	0.2		105.4		(105.3)		(0.3)		—
Total revenues	$	185.5	$	339.9	$	(105.3)	$	(0.3)	$	419.8

17

	Nine Months Ended September 30, 2022
	Railcar Leasing and Management Services Group		Rail Products Group		Eliminations – Lease Subsidiary		Eliminations – Other		Consolidated Total
External revenue	$	572.6	$	813.5	$	—	$	—	$	1,386.1
Intersegment revenue	0.6		605.5		(605.5)		(0.6)		—
Total revenues	$	573.2	$	1,419.0	$	(605.5)	$	(0.6)	$	1,386.1

	Nine Months Ended September 30, 2021
	Railcar Leasing and Management Services Group		Rail Products Group		Eliminations – Lease Subsidiary		Eliminations – Other		Consolidated Total
External revenue	$	553.6	$	490.2	$	—	$	—	$	1,043.8
Intersegment revenue	0.5		372.5		(367.6)		(5.4)		—
Total revenues	$	554.1	$	862.7	$	(367.6)	$	(5.4)	$	1,043.8

The reconciliation of segment operating profit to consolidated net income is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Operating profit:
Railcar Leasing and Management Services Group	$	107.9	$	109.3	$	293.2	$	268.7
Rail Products Group	26.0		(3.1)		40.5		(8.7)
Segment Totals	133.9		106.2		333.7		260.0
Corporate and other	(21.4)		(23.1)		(62.2)		(63.1)
Restructuring activities, net	—		0.1		(1.0)		1.1
Eliminations – Lease Subsidiary	(19.6)		(4.5)		(48.7)		(9.3)
Eliminations – Other	(0.2)		(0.4)		(1.3)		(1.1)
Consolidated operating profit	92.7		78.3		220.5		187.6
Other (income) expense	54.4		44.5		147.0		160.5
Provision (benefit) for income taxes	8.6		8.3		17.4		9.4
Income (loss) from discontinued operations, net of income taxes	(3.4)		10.4		(13.7)		24.3
Loss on sale of discontinued operations, net of income taxes	—		—		(5.7)		—
Net income	$	26.3	$	35.9	$	36.7	$	42.0

Note 5. Partially-Owned Leasing Subsidiaries

Through our wholly-owned subsidiary, Trinity Industries Leasing Company ("TILC"), we formed two subsidiaries, TRIP Holdings and RIV 2013, for the purpose of providing railcar leasing services in North America for institutional investors. Each of TRIP Holdings and RIV 2013 are direct, partially-owned subsidiaries of TILC in which we have a controlling interest. Each is governed by a seven-member board of representatives, two of whom are designated by TILC. TILC is the agent of each of TRIP Holdings and RIV 2013 and, as such, has been delegated the authority, power, and discretion to take certain actions on behalf of the respective companies.

At September 30, 2022, the carrying value of our investment in TRIP Holdings and RIV 2013 totaled $134.5 million. Our weighted average ownership interest in TRIP Holdings and RIV 2013 is 38% while the remaining 62% weighted average interest is owned by third-party, investor-owned funds. The investment in our partially-owned leasing subsidiaries is eliminated in consolidation.

18

Each of TRIP Holdings and RIV 2013 has wholly-owned subsidiaries that are the owners of railcars acquired from our Rail Products and Leasing Groups. TRIP Holdings has wholly-owned subsidiaries known as Triumph Rail LLC ("Triumph Rail") and Tribute Rail. RIV 2013 has a wholly-owned subsidiary known as TRP 2021 LLC ("TRP-2021"). TILC is the contractual servicer for Triumph Rail, Tribute Rail, and TRP-2021, with the authority to manage and service each entity's owned railcars. Our controlling interest in each of TRIP Holdings and RIV 2013 results from our combined role as both equity member and agent/servicer. The noncontrolling interest included in the accompanying Consolidated Balance Sheets represents the non-Trinity equity interest in these partially-owned subsidiaries.

Trinity has no obligation to guarantee performance under any of our partially-owned subsidiaries' (or their respective subsidiaries') debt agreements, guarantee any railcar residual values, shield any parties from losses or guarantee minimum yields.

The assets of each of Triumph Rail, Tribute Rail, and TRP-2021 may only be used to satisfy the particular subsidiary's liabilities, and the creditors of each of Triumph Rail, Tribute Rail, and TRP-2021 have recourse only to the particular subsidiary's assets. Each of TILC and the third-party equity investors receive distributions from TRIP Holdings and RIV 2013, when available, in proportion to its respective equity interests, and has an interest in the net assets of the partially-owned subsidiaries upon a liquidation event in the same proportion. TILC is paid fees for the services it provides to Triumph Rail, Tribute Rail, and TRP-2021 and has the potential to earn certain incentive fees. There are no remaining equity commitments with respect to TRIP Holdings or RIV 2013.

See Note 8 regarding TRIP Holdings and RIV 2013, including the debt issuance of Tribute Rail and the repayment of TRIP Railcar Co. LLC's ("TRIP Railcar Co.") outstanding term loan agreement.

Investment in Unconsolidated Affiliate

In August 2021, the Company and Wafra, Inc. (“Wafra”), a global alternative investment manager, announced a new railcar investment vehicle (“RIV”) program between Trinity and certain funds managed by Wafra (“Wafra Funds”). As part of this program, a joint venture was formed, Signal Rail Holdings LLC (“Signal Rail”), which was owned 90% by Wafra Funds and 10% by TILC. Signal Rail or its subsidiaries are expected to invest in diversified portfolios of leased railcars originated by TILC targeting up to $1 billion in total acquisitions over an expected three-year investment period. TILC will service all railcars owned by Signal Rail.

In August 2022, TILC and certain of its subsidiaries sold a second portfolio comprised of 2,678 railcars and related leases to Signal Rail for an aggregate sales price of approximately $254.1 million. TILC recognized a gain of approximately $25.1 million on the sale and approximately $2.5 million was recognized as revenue for services performed associated with the delivery of railcars with attached leases during the three and nine months ended September 30, 2022. In connection with the sale, TILC contributed $13.5 million of cash to Signal Rail, resulting in an increase in TILC's weighted average equity ownership in Signal Rail to 12.9%. Signal Rail financed the August 2022 purchase primarily through a term loan. To date, TILC has sold 6,260 railcars to Signal Rail for an aggregate sales price of $579.2 million.

Upon consideration under the variable interest entity (“VIE”) model of ASC 810, Trinity has concluded that Signal Rail meets the definition of a VIE. TILC has variable interests in Signal Rail arising from its 12.9% equity ownership position and its role as a service provider. We determined that Trinity is not the primary beneficiary and therefore does not consolidate this entity as we do not have the power to direct the activities of the entity that most significantly impact its economic performance. We will absorb portions of Signal Rail’s expected losses and/or receive portions of expected residual returns commensurate with our 12.9% equity interest in Signal Rail.

Our investment in Signal Rail is being accounted for under the equity method of accounting. At September 30, 2022, the carrying value of TILC’s equity investment in Signal Rail was $20.6 million, which is included in other assets in our Consolidated Balance Sheets. The carrying value of this investment, together with any potential future investments described above, collectively represent our maximum exposure in Signal Rail.

19

Note 6. Railcar Leasing and Management Services Group

The Railcar Leasing and Management Services Group owns and operates a fleet of railcars as well as provides third-party fleet leasing, management, and administrative services. Selected consolidated financial information for the Leasing Group is as follows:

	September 30, 2022
	Wholly- Owned Subsidiaries		Partially-Owned Subsidiaries		Total Leasing Group		Eliminations – Lease Subsidiary(1)		Adjusted Total Leasing Group
	(in millions)
Cash and cash equivalents	$	4.4	$	—	$	4.4	$	—	$	4.4
Accounts receivable	97.3		12.3		109.6		—		109.6
Property, plant, and equipment, net	5,793.1		1,533.5		7,326.6		(774.4)		6,552.2
Restricted cash	117.1		63.1		180.2		—		180.2
Other assets	132.6		1.9		134.5		—		134.5
Total assets	$	6,144.5	$	1,610.8	$	7,755.3	$	(774.4)	$	6,980.9
Accounts payable and accrued liabilities	$	114.9	$	42.9	$	157.8	$	—	$	157.8
Debt, net	3,844.5		1,190.2		5,034.7		—		5,034.7
Deferred income taxes	1,147.0		0.9		1,147.9		(177.6)		970.3
Other liabilities	41.7		—		41.7		—		41.7
Total liabilities	5,148.1		1,234.0		6,382.1		(177.6)		6,204.5
Noncontrolling interest	—		255.2		255.2		—		255.2
Total Equity	$	996.4	$	121.6	$	1,118.0	$	(596.8)	$	521.2

	December 31, 2021
	Wholly- Owned Subsidiaries		Partially-Owned Subsidiaries		Total Leasing Group		Eliminations – Lease Subsidiary(1)		Adjusted Total Leasing Group
	(in millions)
Cash and cash equivalents	$	3.4	$	—	$	3.4	$	—	$	3.4
Accounts receivable	90.7		10.1		100.8		—		100.8
Property, plant, and equipment, net	5,706.1		1,570.6		7,276.7		(779.1)		6,497.6
Restricted cash	76.5		58.6		135.1		—		135.1
Other assets	67.3		2.1		69.4		—		69.4
Total assets	$	5,944.0	$	1,641.4	$	7,585.4	$	(779.1)	$	6,806.3
Accounts payable and accrued liabilities	$	113.4	$	30.1	$	143.5	$	—	$	143.5
Debt, net	3,555.8		1,216.1		4,771.9		—		4,771.9
Deferred income taxes	1,114.2		1.1		1,115.3		(176.6)		938.7
Other liabilities	35.6		—		35.6		—		35.6
Total liabilities	4,819.0		1,247.3		6,066.3		(176.6)		5,889.7
Noncontrolling interest	—		267.0		267.0		—		267.0
Total Equity	$	1,125.0	$	127.1	$	1,252.1	$	(602.5)	$	649.6

(1) Net deferred profit on railcars sold to the Leasing Group consists of intersegment profit that is eliminated in consolidation. Net deferred profit and the related deferred tax impact are included as adjustments to the property, plant, and equipment, net and deferred income taxes line items, respectively, in the Eliminations – Lease Subsidiary column above to reflect the net book value of the railcars purchased by the Leasing Group from the Rail Products Group based on manufacturing cost. See Note 5 and Note 8 for a further discussion regarding our investment in our partially-owned leasing subsidiaries and the related indebtedness.

20

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022			2021			Percent		2022			2021			Percent
	($ in millions)						Change		($ in millions)						Change
Revenues:
Leasing and management	$	194.8		$	185.5		5.0	%	$	573.2		$	554.1		3.4	%
Operating profit (1):
Leasing and management	$	73.6		$	76.4		(3.7)	%	$	220.2		$	223.0		(1.3)	%
Lease portfolio sales (2)	34.3			32.9			*		73.0			45.7			*
Total operating profit	$	107.9		$	109.3		(1.3)	%	$	293.2		$	268.7		9.1	%
Total operating profit margin	55.4		%	58.9		%			51.2		%	48.5		%
Leasing and management operating profit margin	37.8		%	41.2		%			38.4		%	40.2		%
Selected expense information:
Depreciation (3)	$	59.1		$	58.7		0.7	%	$	175.7		$	170.5		3.0	%
Maintenance and compliance	$	28.2		$	22.8		23.7	%	$	84.7		$	73.7		14.9	%
Rent and ad valorem taxes	$	5.2		$	5.0		4.0	%	$	15.5		$	14.3		8.4	%
Selling, engineering, and administrative expenses	$	14.2		$	11.6		22.4	%	$	39.6		$	36.1		9.7	%
Interest (4)	$	49.2		$	39.9		23.3	%	$	133.9		$	142.6		(6.1)	%

* Not meaningful

(1) Operating profit includes: depreciation; fleet operating costs, which include maintenance, compliance, freight, and storage; rent and ad valorem taxes; and selling, engineering, and administrative expenses. Amortization of deferred profit on railcars sold from the Rail Products Group to the Leasing Group is included in the operating profit of the Leasing Group, resulting in the recognition of depreciation expense based on our original manufacturing cost of the railcars. Interest expense is not a component of operating profit and includes the effect of hedges.

(2) Includes $1.3 million selling profit associated with sales-type leases for the nine months ended September 30, 2022.

(3) Depreciation expense includes $2.4 million and $8.5 million for the three and nine months ended September 30, 2022, respectively, related to the disposal of certain railcar components associated with our sustainable railcar conversion program. For the three and nine months ended September 30, 2021, depreciation expense includes $4.7 million and $7.3 million, respectively, related to our sustainable railcar conversion program.

(4) Interest expense for the nine months ended September 30, 2022 includes $1.5 million of loss on extinguishment of debt associated with the repayment of TRIP Railcar Co.'s outstanding term loan agreement. Interest expense for the nine months ended September 30, 2021 includes $11.7 million of loss on extinguishment of debt associated with the refinancing of our partially-owned subsidiaries' debt.

Information related to lease portfolio sales is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	($ in millions)
Lease portfolio sales	$	299.6		$	322.1		$	514.8		$	410.9
Operating profit on lease portfolio sales (1)	$	34.3		$	32.9		$	71.7		$	45.7
Operating profit margin on lease portfolio sales	11.4		%	10.2		%	13.9		%	11.1		%

(1) Excludes $1.3 million selling profit associated with sales-type leases for the nine months ended September 30, 2022.

21

Railcar Leasing Equipment Portfolio. The Leasing Group's equipment consists primarily of railcars leased by third parties. The Leasing Group purchases equipment manufactured predominantly by the Rail Products Group and enters into lease contracts with third parties with terms generally ranging between one year and ten years. The Leasing Group primarily enters into operating leases. Future contractual minimum rental revenues on operating leases related to our wholly-owned and partially-owned subsidiaries are as follows:

	Remaining three months of 2022		2023		2024		2025		2026		Thereafter		Total
	(in millions)
Future contractual minimum rental revenues	$	154.2	$	512.2	$	402.2	$	304.8	$	218.1	$	368.9	$	1,960.4

Debt. Wholly-owned subsidiaries. The Leasing Group’s debt at September 30, 2022 consisted primarily of non-recourse debt. As of September 30, 2022, Trinity’s wholly-owned subsidiaries included in the Leasing Group held equipment with a net book value of $5,431.2 million, which is pledged solely as collateral for Leasing Group debt held by those subsidiaries. The net book value of unpledged equipment at September 30, 2022 was $350.8 million. See Note 8 for more information regarding the Leasing Group debt.

Partially-owned subsidiaries. Debt owed by TRIP Holdings and RIV 2013 and their respective subsidiaries is nonrecourse to Trinity and TILC. Creditors of each of TRIP Holdings and RIV 2013 and their respective subsidiaries have recourse only to the particular subsidiary's assets. As of September 30, 2022, TRIP Holdings held equipment with a net book value of $1,078.6 million, which is pledged solely as collateral for the TRIP Holdings' debt held by its subsidiaries. As of September 30, 2022, TRP-2021 equipment with a net book value of $454.9 million is pledged solely as collateral for the TRP-2021 debt. See Note 5 for a description of TRIP Holdings and RIV 2013 and their respective subsidiaries.

Operating Lease Obligations. Future amounts due as well as future contractual minimum rental revenues related to the Leasing Group's railcar operating lease obligations are as follows:

	Remaining three months of 2022		2023		2024		2025		2026		Thereafter		Total
	(in millions)
Future operating lease obligations	$	3.2	$	11.9	$	7.9	$	6.0	$	5.7	$	8.7	$	43.4
Future contractual minimum rental revenues	$	2.5	$	7.7	$	3.8	$	2.6	$	1.9	$	0.5	$	19.0

Operating lease obligations totaling $1.4 million are guaranteed by Trinity Industries, Inc. and certain subsidiaries. The Leasing Group also has future amounts due for operating lease obligations related to office space of approximately $0.2 million, which is excluded from the table above.

22

Note 7. Property, Plant, and Equipment

The following table summarizes the components of property, plant, and equipment:

	September 30, 2022		December 31, 2021
	(in millions)
Manufacturing/Corporate:
Land	$	15.8	$	17.4
Buildings and improvements	385.0		377.4
Machinery and other	406.0		415.1
Construction in progress	15.9		18.1
	822.7		828.0
Less: accumulated depreciation	(481.1)		(478.7)
	341.6		349.3
Leasing:
Wholly-owned subsidiaries:
Machinery and other	21.6		20.7
Equipment on lease	7,223.5		7,061.3
	7,245.1		7,082.0
Less: accumulated depreciation	(1,452.0)		(1,375.9)
	5,793.1		5,706.1
Partially-owned subsidiaries:
Equipment on lease	2,234.5		2,242.9
Less: accumulated depreciation	(701.0)		(672.3)
	1,533.5		1,570.6
Deferred profit on railcars sold to the Leasing Group	(1,057.5)		(1,047.3)
Less: accumulated amortization	283.1		268.2
	(774.4)		(779.1)
	$	6,893.8	$	6,846.9

23

Note 8. Debt

The carrying amounts of our debt are as follows:

	September 30, 2022		December 31, 2021
	(in millions)
Corporate – Recourse:
Revolving credit facility	$	60.0	$	—
Senior notes, net of unamortized discount of $0.1 and $0.1	399.9		399.9
	459.9		399.9
Less: unamortized debt issuance costs	(0.9)		(1.2)
Total recourse debt	459.0		398.7
Leasing – Non-recourse:
Wholly-owned subsidiaries:
Secured railcar equipment notes, net of unamortized discount of $0.4 and $0.5	2,412.3		2,257.5
2017 promissory notes, net of unamortized discount of $6.2 and $7.8	726.6		760.2
TILC warehouse facility	728.2		561.8
	3,867.1		3,579.5
Less: unamortized debt issuance costs	(22.6)		(23.7)
	3,844.5		3,555.8
Partially-owned subsidiaries:
Secured railcar equipment notes, net of unamortized discount of $0.4 and $0.3	1,200.7		903.5
TRIP Railcar Co. term loan	—		323.7
	1,200.7		1,227.2
Less: unamortized debt issuance costs	(10.5)		(11.1)
	1,190.2		1,216.1
Total non–recourse debt	5,034.7		4,771.9
Total debt	$	5,493.7	$	5,170.6

Estimated Fair Value of Debt – The estimated fair value of our 4.55% senior notes due 2024 ("Senior Notes") is based on a quoted market price in a market with little activity (Level 2 input). The estimated fair values of our secured railcar equipment notes are based on our estimate of their fair value using unobservable input values provided by a third party (Level 3 inputs). The respective carrying values of our revolving credit facility, 2017 promissory notes, TILC warehouse facility, and TRIP Railcar Co. term loan approximate fair value because the interest rate adjusts to the market interest rate. The estimated fair values of our debt are as follows:

	September 30, 2022		December 31, 2021
	(in millions)
Level 1	$	1,514.8	$	1,645.7
Level 2	381.5		420.8
Level 3	3,284.8		3,215.4
	$	5,181.1	$	5,281.9

24

Revolving Credit Facility – We have a $450.0 million unsecured corporate revolving credit facility. In July 2022, we amended our revolving credit facility to extend its maturity date to the earlier of (i) July 25, 2027 or (ii) July 2, 2024 if our Senior Notes have not been repaid in full by that date.

During the nine months ended September 30, 2022, we had total borrowings of $545.0 million and total repayments of $485.0 million under the revolving credit facility. Additionally, we had outstanding letters of credit issued in an aggregate amount of $4.9 million. Of the $385.1 million remaining unused amount, $264.1 million was available for borrowing as of September 30, 2022. The majority of our outstanding letters of credit as of September 30, 2022 are scheduled to expire in November 2023. Our letters of credit obligations support performance bonds related to certain railcar orders. The revolving credit facility bears interest at a variable rate of Secured Overnight Financing Rate ("SOFR") plus 2.35%, for an all-in interest rate of 5.34% as of September 30, 2022. A commitment fee accrues on the average daily unused portion of the revolving credit facility at the rate of 0.175% to 0.40% (0.35% as of September 30, 2022).

The revolving credit facility requires the maintenance of ratios related to minimum interest coverage for the leasing and manufacturing operations and maximum leverage. In July 2022, we amended our revolving credit facility to increase the maximum leverage ratio to provide additional flexibility. As of September 30, 2022, we were in compliance with all such financial covenants.

TILC Warehouse Loan Facility – TILC has a $1.0 billion warehouse loan facility, which was established to finance railcars owned by TILC. During the nine months ended September 30, 2022, we had total borrowings of $554.1 million and total repayments of $387.7 million under the TILC warehouse loan facility. Of the remaining unused facility amount of $271.8 million, $142.1 million was available as of September 30, 2022 based on the amount of warehouse-eligible, unpledged equipment. In August 2022, we amended our warehouse loan facility to transition the facility benchmark rate from LIBOR to SOFR plus a benchmark adjustment. Advances under the facility bear interest at one-month term SOFR plus (1) a benchmark adjustment of 11 basis points and (2) a facility margin of 185 basis points, for an all-in interest rate of 4.48% at September 30, 2022.

TRL-2022 – In April 2022, Trinity Rail Leasing 2022 LLC, a Delaware limited liability company ("TRL-2022") and a limited purpose, indirect wholly-owned subsidiary of the Company owned through TILC, issued an aggregate principal amount of $244.8 million of its Series 2022-1 Class A Green Secured Railcar Equipment Notes (the "TRL-2022 Notes"). The TRL-2022 Notes bear interest at a fixed rate of 4.55%, are payable monthly, and have a stated final maturity date of May 20, 2052. We incurred $2.6 million in debt issuance costs, which will be amortized to interest expense through the anticipated repayment date of the TRL-2022 Notes. The TRL-2022 Notes are obligations of TRL-2022 and are non-recourse to Trinity. The obligations are secured by a portfolio of railcars and operating leases thereon, certain cash reserves, and other assets to be acquired and owned by TRL-2022. Net proceeds received from the railcars acquired in connection with the issuance of the TRL-2022 Notes were used to repay approximately $209.9 million of borrowings under TILC's warehouse loan facility and for general corporate purposes.

Tribute Rail – In May 2022, Tribute Rail, an indirect, wholly-owned subsidiary of TRIP Holdings, issued an aggregate principal amount of (i) $290.0 million of its Series 2022-1 Class A Green Secured Railcar Equipment Notes (the “Class A Notes”) and (ii) $37.0 million of its Series 2022-1 Class B Green Secured Railcar Equipment Notes (the “Class B Notes”) (the Class A Notes and the Class B Notes are, collectively, the “Tribute Rail Notes”). The Class A Notes bear interest at a fixed rate of 4.76%, and the Class B Notes bear interest at a fixed rate of 5.75%. The Tribute Rail Notes are payable monthly and have a stated final maturity date of May 17, 2052. We incurred $3.4 million in debt issuance costs, which will be amortized to interest expense through the anticipated repayment date of the Tribute Rail Notes. The Tribute Rail Notes are non-recourse to Trinity, TILC, TRIP Holdings, and the other equity investors in TRIP Holdings, and are secured by Tribute Rail's portfolio of railcars and operating leases thereon, certain cash reserves, and other assets acquired and owned by Tribute Rail.

Tribute Rail used the proceeds from the sale of the Tribute Rail Notes to purchase railcars and related operating leases from TRIP Railcar Co. TRIP Railcar Co. used the proceeds from Tribute Rail to repay its outstanding term loan agreement due June 2025, of which $319.4 million was outstanding at the redemption date. In connection with the redemption, we recognized a loss on extinguishment of debt of $1.5 million, which related to the write-off of unamortized debt issuance costs. This write-off is reflected in the loss on extinguishment of debt line of our Consolidated Statements of Operations for the nine months ended September 30, 2022.

25

Each of our secured railcar equipment notes, including the TRL-2022 Notes and the Tribute Rail Notes, generally has an anticipated repayment date and a stated final maturity date. While the stated final maturity date of these notes is in 2052, the cash flows from the encumbered assets of each of TRL-2022 and Tribute Rail will be applied, pursuant to the payment priorities of their respective indentures, so as to amortize their respective notes to achieve monthly targeted principal balances. If the cash flow assumptions used in determining the targeted balances are met, it is anticipated that the notes will be repaid well in advance of their stated final maturity date. There can be no assurance, however, that such cash flow assumptions will be realized. If these notes are not repaid by the anticipated repayment date, the respective interest rates on these notes would increase from the fixed rates stated above.

Terms and conditions of our other long-term debt, including recourse and non-recourse provisions and scheduled maturities, are described in Note 8 of our 2021 Annual Report on Form 10-K.

Note 9. Income Taxes

The effective tax rate from continuing operations for the three and nine months ended September 30, 2022 was 22.5% and 23.7%, respectively, which differs from the U.S. statutory rate of 21.0% primarily due to state income taxes, foreign taxes, non-deductible executive compensation, excess tax benefits associated with equity-based compensation, taxes not recorded on our non-controlling interests in partially-owned subsidiaries, and a reduction of our uncertain tax positions balance due to a lapse of a state statute of limitations.

For the three months ended September 30, 2021, we recorded income tax expense of $8.3 million on income from continuing operations before income taxes of $33.8 million, which differs from the U.S. statutory rate primarily due to excess tax benefits associated with equity-based compensation. For the nine months ended September 30, 2021, we recorded income tax expense of $9.4 million on income from continuing operations before income taxes of $27.1 million, which differs from the U.S. statutory rate primarily due to adjustments to the Coronavirus Aid, Relief, and Economic Security Act carryback benefit previously recognized, partially offset by excess tax benefits associated with equity-based compensation.

The total income tax receivable position as of September 30, 2022 was $11.0 million.

Our tax years through 2019 are effectively settled except with respect to carryback claims related to the 2013 through 2015 tax years, which are currently in review. We do not expect any significant changes to the carryback claims. We have state tax returns that are under audit in the normal course of business, and our Mexican subsidiaries' tax returns statutes of limitations remain open for auditing 2017 forward. We believe we are appropriately reserved for any potential matters.

Note 10. Employee Retirement Plans

Our defined contribution expense for the three and nine months ended September 30, 2022 was $2.5 million and $6.8 million, respectively. Our defined contribution expense for the three and nine months ended September 30, 2021 was $2.5 million and $6.8 million, respectively.

The net periodic benefit cost related to our Supplemental Executive Retirement Plan was $0.2 million and $0.5 million for the three and nine months ended September 30, 2022. The net periodic benefit cost related to our Supplemental Executive Retirement Plan was $0.1 million and $0.5 million for the three and nine months ended September 30, 2021, respectively. The non-service cost components of net periodic benefit cost are included in other, net (income) expense in our Consolidated Statements of Operations.

Pension Plan Termination

In September 2019, our Board of Directors approved the termination of the Trinity Industries, Inc. Consolidated Pension Plan (the "Pension Plan"), effective December 31, 2019. The Pension Plan was settled in the fourth quarter of 2020, which resulted in the Company no longer having any remaining funded pension plan obligations. Upon settlement, we recognized a pre-tax non-cash pension settlement charge in the fourth quarter of 2020 of $151.5 million, which was inclusive of all unamortized losses previously recorded in AOCI.

During the nine months ended September 30, 2021, we used $2.2 million to fund pension administrative expenses required to finalize the settlement of the Pension Plan, which is included in other, net (income) expense in our Consolidated Statements of Operations. There were no pension administrative expenses for the three months ended September 30, 2022 and 2021. During the nine months ended September 30, 2022, we used $0.2 million to fund pension administrative expenses, resulting in a remaining surplus of the Pension Plan of $0.4 million at September 30, 2022.

26

Note 11. Accumulated Other Comprehensive Income (Loss)

Changes in AOCI for the nine months ended September 30, 2022 are as follows:

	Currency translation adjustments		Unrealized gains/(losses) on derivative financial instruments		Net actuarial gains/(losses) of defined benefit plans		Accumulated other comprehensive income (loss)
	(in millions)
Balances at December 31, 2021	$	(1.3)	$	(12.2)	$	(3.5)	$	(17.0)
Other comprehensive income, net of tax, before reclassifications	—		26.8		—		26.8
Amounts reclassified from AOCI, net of tax benefit of $—, $1.2, $—, and $1.2	—		4.6		0.2		4.8
Amounts reclassified to discontinued operations, net of tax	1.3		—		—		1.3
Less: noncontrolling interest	—		0.5		—		0.5
Other comprehensive income	1.3		31.9		0.2		33.4
Balances at September 30, 2022	$	—	$	19.7	$	(3.3)	$	16.4

See Note 3 for information on the reclassification of amounts in AOCI into earnings. Reclassifications of unrealized before-tax gains and losses on derivative financial instruments are included in interest expense, net for our interest rate hedges and in cost of revenues for our foreign currency hedges in our Consolidated Statements of Operations. Reclassifications of before-tax net actuarial gains/(losses) of defined benefit plans are included in other, net (income) expense in our Consolidated Statements of Operations. Changes in currency translation adjustments above relate to the final resolution of amounts associated with businesses previously disposed and are included in loss on sale of discontinued operations, net of income taxes in our Consolidated Statements of Operations.

Note 12. Common Stock and Stock-Based Compensation

Stockholders' Equity

In September 2021, our Board of Directors authorized a new share repurchase program effective September 9, 2021 through December 31, 2022. The new share repurchase program authorizes the Company to repurchase up to $250.0 million of its common stock. In December 2021, we entered into an accelerated share repurchase agreement (the "ASR") to repurchase $125.0 million of our common stock. Approximately 3.3 million shares repurchased as part of the ASR on December 31, 2021 were delivered to the Company in January 2022 in accordance with normal settlement practices, representing approximately 80% of the total notional value of the ASR. The ASR was completed in April 2022. Share repurchase activity under the authorized program is as follows:

	Shares Repurchased			Remaining Authorization to Repurchase
Period	Number of Shares	Cost (in millions)		Cost (in millions)
September 9, 2021 Authorization				$	250.0
September 9, 2021 through September 30, 2021	—	$	—	$	250.0
October 1, 2021 through December 31, 2021	5,155,491	151.9		$	98.1
January 1, 2022 through March 31, 2022	—	—		$	98.1
April 1, 2022 through June 30, 2022	1,760,462	50.3		$	47.8	(1)
July 1, 2022 through September 30, 2022	610,000	14.1		$	33.7
Total	7,525,953	$	216.3

(1) Share repurchases during the second quarter of 2022 included 760,602 shares at a cost of $25.0 million representing the final settlement of the ASR, which was funded in December 2021 but a portion of which remained outstanding as of December 31, 2021.

Certain shares of stock repurchased during September 2022, totaling $2.6 million, were cash settled in October 2022 in accordance with normal settlement practices.

27

During the three and nine months ended September 30, 2021, share repurchases totaled 2.8 million and 14.6 million, respectively, at a cost of approximately $77.1 million and $404.7 million, respectively. Share repurchases during the nine months ended September 30, 2021 included 8.1 million shares, at a cost of approximately $222.5 million, from a privately negotiated transaction with ValueAct Capital Master Fund, L.P ("ValueAct"). The repurchase from ValueAct was approved by our Board of Directors separately from, and did not reduce the authorized amount remaining under, the previous share repurchase program, which was completed in the third quarter of 2021.

Stock-Based Compensation

Stock-based compensation expense totaled approximately $5.9 million and $16.7 million for the three and nine months ended September 30, 2022, respectively. Stock-based compensation expense totaled approximately $6.0 million and $15.2 million for the three and nine months ended September 30, 2021, respectively. The Company's annual grant of share-based awards generally occurs in the second quarter under our 2004 Fourth Amended and Restated Stock Option and Incentive Plan (the "Plan”). Our stock options have contractual terms of ten years and become exercisable over a three-year period. Expense related to stock options is recognized on a straight-line basis over the vesting period. Expense related to restricted stock units ("RSUs") issued to eligible employees under the Plan is recognized over the vesting period, generally between three years and four years. Beginning in 2020, certain RSU grants provide for full vesting when the award recipients retire having reached 60 years of age and having provided at least ten years of service to the Company, provided that the awards remain outstanding for a period of six months from the date of grant. The expense for these awards is recognized over the applicable service period for each of the eligible award recipients. Expense related to RSUs and restricted stock awards ("RSAs") granted to non-employee directors under the Plan is recognized on a straight-line basis over the vesting period, generally one year. Expense related to performance units is recognized on a straight-line basis from their award date to the end of the performance period, generally three years.

The following table summarizes stock-based compensation awards granted during the nine months ended September 30, 2022:

	Number of Shares Granted	Weighted Average Grant-Date Fair Value per Award
Restricted stock units	630,449	$	25.64
Restricted stock awards	26,339	$	25.43
Performance units	243,084	$	29.89

28

Note 13. Earnings Per Common Share

Basic net income attributable to Trinity Industries, Inc. per common share ("EPS") is computed by dividing net income attributable to Trinity remaining after allocation to unvested restricted shares by the weighted average number of basic common shares outstanding for the period. Except when the effect would be antidilutive, the calculation of diluted EPS includes the net impact of potentially dilutive common shares. The Company has certain unvested RSAs that participate in dividends on a nonforfeitable basis and are therefore considered to be participating securities. Consequently, diluted net income attributable to Trinity Industries, Inc. per common share is calculated under both the two-class method and the treasury stock method, and the more dilutive of the two calculations is presented.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions, except per share amounts)
Income from continuing operations	$	29.7	$	25.5	$	56.1	$	17.7
Less: Net (income) loss attributable to noncontrolling interest	(0.5)		(3.9)		(7.9)		6.0
Net income from continuing operations attributable to Trinity Industries, Inc.	29.2		21.6		48.2		23.7
Income (loss) from discontinued operations, net of income taxes	(3.4)		10.4		(13.7)		24.3
Loss on sale of discontinued operations, net of income taxes	—		—		(5.7)		—
Net income (loss) from discontinued operations attributable to Trinity Industries, Inc.	(3.4)		10.4		(19.4)		24.3
Net income attributable to Trinity Industries, Inc.	$	25.8	$	32.0	$	28.8	$	48.0
Basic weighted average shares outstanding	81.7		97.7		82.3		103.4
Effect of dilutive securities	1.6		1.8		2.1		2.3
Diluted weighted average shares outstanding	83.3		99.5		84.4		105.7
Basic earnings per common share:
Income from continuing operations	$	0.36	$	0.22	$	0.59	$	0.23
Income (loss) from discontinued operations	(0.04)		0.11		(0.24)		0.23
Basic net income attributable to Trinity Industries, Inc.	$	0.32	$	0.33	$	0.35	$	0.46
Diluted earnings per common share:
Income from continuing operations	$	0.35	$	0.22	$	0.57	$	0.22
Income (loss) from discontinued operations	(0.04)		0.11		(0.23)		0.23
Diluted net income attributable to Trinity Industries, Inc.	$	0.31	$	0.33	$	0.34	$	0.45
Potentially dilutive securities excluded from EPS calculation:
Antidilutive restricted shares	0.3		0.1		0.1		0.1
Antidilutive stock options	—		—		—		—

29

Note 14. Contingencies

Highway products litigation

We previously reported the filing of a False Claims Act (“FCA”) complaint in the United States District Court for the Eastern District of Texas, Marshall Division (“District Court”) styled Joshua Harman, on behalf of the United States of America, Plaintiff/Relator v. Trinity Industries, Inc., Defendant, Case No. 2:12-cv-00089-JRG (E.D. Tex.). In this case, in which the U.S. Government declined to intervene, the relator, Mr. Joshua Harman, alleged the Company violated the FCA pertaining to sales of the ET Plus. On October 20, 2014, a trial in this case concluded with a jury verdict stating that the Company and THP “knowingly made, used or caused to be made or used, a false record or statement material to a false or fraudulent claim," and the District Court entered judgment on the verdict in the total amount of $682.4 million. On September 29, 2017, the United States Court of Appeals for the Fifth Circuit ("Fifth Circuit") reversed the District Court’s $682.4 million judgment and rendered judgment as a matter of law in favor of the Company and THP. On January 7, 2019, the United States Supreme Court denied Mr. Harman's petition for certiorari seeking review of the Fifth Circuit's decision. The denial of Mr. Harman's petition ended this action.

Pursuant to the purchase and sale agreement related to the sale of THP, the Company has agreed to indemnify Rush Hour for certain liabilities related to the highway products business, including those liabilities resulting from or arising out of (a) the proceedings set forth under “State actions” and "Missouri class action" below and (b) any other proceedings to the extent resulting from or arising out of ET Plus systems or specified ET Plus component parts that are both (i) manufactured prior to December 31, 2021, and (ii) sold in the United States on or prior to April 30, 2022, or related warranty obligations with respect thereto.

State actions

Mr. Harman also has a separate state qui tam action currently pending pursuant to the Virginia Fraud Against Taxpayers Act ("VFATA") (Commonwealth of Virginia ex rel. Joshua M. Harman v. Trinity Industries, Inc. and Trinity Highway Products, LLC, Case No. CL13-698, in the Circuit Court, Richmond, Virginia). In this matter, Mr. Harman alleged the Company violated the VFATA pertaining to sales of the ET Plus, and he is seeking damages, civil penalties, attorneys’ fees, costs, and interest. The Commonwealth of Virginia Attorney General has intervened in the Virginia matter, which is scheduled for trial on April 17, 2023. The Company believes that the claims in this matter are without merit and intends to vigorously defend against all allegations.

In a similar Tennessee state qui tam action filed by Mr. Harman (State of Tennessee ex rel. Joshua M. Harman v. Trinity Industries, Inc., and Trinity Highway Products, LLC, Case No. 14C2652, in the Circuit Court for Davidson County, Tennessee), Mr. Harman alleged the Company violated the Tennessee False Claim Act pertaining to sales of the ET Plus, and he is seeking damages, civil penalties, attorneys’ fees, costs, and interest. The State of Tennessee Attorney General filed a Notice of Election to Decline Intervention in this matter. On January 10, 2022, the trial court granted Trinity’s Motion to Dismiss Harman’s Second Amended Complaint and entered an order dismissing Mr. Harman’s complaint with prejudice. On February 7, 2022, Mr. Harman filed a Notice of Appeal of the trial court's order dismissing the case. Mr. Harman's appeal remains pending. The Company believes that the claims in this matter are without merit and intends to vigorously defend against all allegations.

In a similar New Jersey state qui tam action (State of New Jersey ex rel. Joshua M. Harman v. Trinity Industries, Inc. and Trinity Highway Products, LLC, Case No.L-1344-14, in the Superior Court of New Jersey Law Division: Mercer County) that was previously dismissed by the trial court, Mr. Harman sought leave to file an amended complaint pursuant to the New Jersey False Claims Act. On February 16, 2022, the trial court denied Mr. Harman’s motion. On March 9, 2022, Mr. Harman filed a motion for reconsideration of the trial court’s order denying leave to file an amended complaint. On June 27, 2022, the trial court denied Mr. Harman’s motion for reconsideration seeking leave to file an amended complaint with prejudice. On August 9, 2022, Mr. Harman filed a Notice of Appeal of the trial court's order denying Mr. Harman's motion for reconsideration. Mr. Harman's appeal remains pending. The Company believes that the claims in this matter are without merit and intends to vigorously defend against all allegations.

As previously reported, state qui tam actions filed by Mr. Harman in the states of Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Minnesota, Montana, Nevada, Rhode Island, and California were dismissed. Also as previously reported, in June 2022, a state qui tam action filed by Mr. Harman in the state of Massachusetts was settled for $5.0 million, which is included in income (loss) from discontinued operations, net of income taxes, in our Consolidated Statement of Operations for the nine months ended September 30, 2022.

30

Based on information currently available to the Company and previously disclosed, we currently do not believe that a loss is probable in the Virginia, Tennessee, and New Jersey state qui tam actions described under "State actions," therefore no accrual has been included in the accompanying Consolidated Financial Statements. Because of the complexity of these actions, as well as the current status of certain of these actions, we are not able to estimate a range of possible losses with respect to any one or more of these actions. While the financial impacts of these state actions are currently unknown, they could be material.

Missouri class action

On November 5, 2015, a lawsuit was filed against the Company titled Jackson County, Missouri, individually and on behalf of a class of others similarly situated vs. Trinity Industries, Inc. and Trinity Highway Products, LLC, Case No. 1516-CV23684 (Circuit Court of Jackson County, Missouri). The case was being brought by plaintiff for and on behalf of itself and all Missouri counties with a population of 10,000 or more persons, including the City of St. Louis, and the State of Missouri’s transportation authority. The plaintiff alleged that the Company and THP did not disclose design changes to the ET Plus and these allegedly undisclosed design changes made the ET Plus allegedly defective, unsafe, and unreasonably dangerous. The plaintiff alleged product liability negligence, product liability strict liability, and negligently supplying dangerous instrumentality for supplier’s business purposes. The plaintiff sought compensatory damages, interest, attorneys' fees, and costs, and in the alternative plaintiff sought a declaratory judgment that the ET Plus is defective, the Company’s conduct was unlawful, and class-wide costs and expenses associated with removing and replacing the ET Plus throughout Missouri. On December 6, 2017, the Court granted plaintiff's Motion for Class Certification, certifying a class of Missouri counties with populations of 10,000 or more persons, including the City of St. Louis and the State of Missouri's transportation authority that have or had ET Plus guardrail end terminals with 4-inch wide guide channels installed on roadways they own or maintain.

The parties reached an agreement to settle all claims in this case without any admission of liability or fault. Defendants have denied and continue to deny specifically each and all of the claims and contentions alleged in this case. The Company’s settlement with the class avoids the uncertainty and expense of continued litigation. On May 30, 2022, the trial court granted preliminary approval of the settlement, and on August 30, 2022, the trial court granted final approval of the settlement. Pursuant to the settlement, the Company will pay for the past replacement of certain ET Plus systems, for locating and replacing certain existing undamaged ET Plus systems, and for attorneys’ fees and costs. In accordance with ASC 450, Contingencies, the Company recorded a pre-tax charge of $23.9 million ($18.3 million, net of income taxes) during the year ended December 31, 2021, which was included in income from discontinued operations, net of income taxes, in our Consolidated Statement of Operations, based on the Company’s assessment that a settlement was probable and the estimated costs to resolve this action. Certain amounts involved in the settlement cannot be precisely determined at this time as the actual number of qualifying ET Plus systems that will be replaced as part of the settlement is not currently known. Consequently, the corresponding liability will be periodically reviewed and adjusted, when appropriate, for a number of factors, including differences between actual and estimated costs. The accrual and related range of reasonably possible loss related to this matter are included in the amounts described below under "Other matters."

Product liability cases

The Company is currently defending product liability lawsuits in several different states that are alleged to involve the ET Plus as well as other products manufactured by THP. These cases are diverse in light of the randomness of collisions in general and the fact that each accident involving a roadside device, such as an end terminal, or any other fixed object along the highway, has its own unique facts and circumstances. The Company carries general liability insurance to mitigate the impact of adverse judgment exposures in these product liability cases. To the extent that the Company believes that a loss is probable with respect to these product liability cases, the accrual for such losses is included in the amounts described below under "Other matters".

31

Other matters

The Company is involved in claims and lawsuits incidental to our business arising from various matters, including product warranty, personal injury, environmental issues, workplace laws, and various governmental regulations. The Company evaluates its exposure to such claims and suits periodically and establishes accruals for these contingencies when a range of loss can be reasonably estimated. The range of reasonably possible losses for such matters is $37.0 million to $51.2 million, which includes our rights in indemnity and recourse to third parties of approximately $10.1 million, which is recorded in other assets in our Consolidated Balance Sheet as of September 30, 2022. This range includes any amounts related to the Highway Products litigation matters described above in the section titled “Highway products litigation." At September 30, 2022, total accruals of $37.3 million, including environmental and workplace matters described below, are included in accrued liabilities in the accompanying Consolidated Balance Sheets. The Company believes any additional liability would not be material to its financial position or results of operations.

Trinity is subject to remedial orders and federal, state, local, and foreign laws and regulations relating to the environment and the workplace. The Company has reserved $1.0 million to cover our probable and estimable liabilities with respect to the investigations, assessments, and remedial responses to such matters, taking into account currently available information and our contractual rights to indemnification and recourse to third parties. However, estimates of liability arising from future proceedings, assessments, or remediation are inherently imprecise. Accordingly, there can be no assurance that we will not become involved in future litigation or other proceedings involving the environment and the workplace or, if we are found to be responsible or liable in any such litigation or proceeding, that such costs would not be material to the Company. We believe that we are currently in substantial compliance with environmental and workplace laws and regulations.

Georgia tornado

On March 26, 2021, a tornado damaged the Company’s rail maintenance facility in Cartersville, Georgia. We incurred costs related to cleanup and damage remediation activities in order for the facility to resume operations in the second quarter of 2021. We believe our insurance coverage is sufficient to cover property damage costs related to the event. To date, we have received total advanced payments from insurance of approximately $25.4 million, which includes $8.1 million for reimbursement of cleanup and damage remediation expenditures. As of September 30, 2022, we have utilized $17.0 million of the advanced payments from insurance towards new capital expenditures in support of the reconstruction efforts.

During the first six months of 2022, we recorded an insurance receivable of approximately $7.3 million for additional property damage recoveries that we expect to be reimbursed under the terms of our insurance policy, and we recorded a corresponding gain, net of the applicable deductible, of $6.4 million, which is included in the gains on dispositions of other property line in our Consolidated Statements of Operations. We received $4.8 million of reimbursements for property damage recoveries, resulting in a remaining insurance receivable of $2.5 million as of June 30, 2022.

During the third quarter of 2022, we recorded an additional insurance receivable of approximately $2.9 million for additional insurance recoveries that we expect to be reimbursed under the terms of our insurance policy, and we recorded a gain of $1.1 million, which is included in the gains on dispositions of other property line in our Consolidated Statements of Operations. We received $2.8 million of reimbursements during the third quarter of 2022, resulting in a remaining insurance receivable of $2.6 million as of September 30, 2022.

Any additional property damage insurance proceeds received in excess of the net book value of property lost will be accounted for as gains in future quarters.

32

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to provide management's perspective on our financial condition, results of operations, liquidity, and certain other factors that may affect our future results. Our MD&A should be read in conjunction with the unaudited Consolidated Financial Statements and related Notes in Part I, Item 1 of this Quarterly Report on Form 10-Q and Item 8, Financial Statements and Supplementary Data, of our 2021 Annual Report on Form 10-K.

This MD&A includes financial measures compiled in accordance with generally accepted accounting principles ("GAAP") and certain non-GAAP measures. Please refer to the Non-GAAP Financial Measures section herein for information on the non-GAAP measures included in the MD&A, reconciliations to the most directly comparable GAAP financial measure, and the reasons why management believes each measure is useful to management and investors.

33

Forward-Looking Statements

This quarterly report on Form 10-Q (or statements otherwise made by the Company or on the Company’s behalf from time to time in other reports, filings with the Securities and Exchange Commission (“SEC”), news releases, conferences, website postings or otherwise) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not historical facts are forward-looking statements and involve risks and uncertainties. These forward-looking statements include expectations, beliefs, plans, objectives, future financial performances, estimates, projections, goals, and forecasts. Trinity uses the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” and similar expressions to identify these forward-looking statements. Potential factors, which could cause our actual results of operations to differ materially from those in the forward-looking statements, include, among others:

•market conditions and customer demand for our business products and services;

•the cyclical nature of the industries in which we compete;

•variations in weather in areas where our products are sold or used;

•naturally-occurring events, pandemics, and/or 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 impact of the coronavirus pandemic (“COVID-19”) and the response thereto, on, among other things, demand for our products and services, our customers' ability to pay, disruptions to our supply chain, our liquidity and financial position, results of operations, stock price, payment of dividends, our ability to generate new railcar orders, our ability to originate and/or renew leases at favorable rates, our ability to convert backlog to revenue, and the operational status of our facilities;

•disruptions in the transportation network used to deliver our products, which may impact our ability to timely deliver railcars to our customers;

•shortages of labor;

•impacts from asset impairments and related charges;

•the timing of introduction of new products;

•the timing and delivery of customer orders, lease portfolio sales, or a breach of customer contracts;

•the creditworthiness of customers and their access to capital;

•product price changes;

•changes in mix of products sold;

•the costs incurred to align manufacturing capacity with demand and the extent of its utilization;

•the operating leverage and efficiencies that can be achieved by our manufacturing businesses;

•availability and costs of steel, component parts, supplies, and other raw materials;

•competition and other competitive factors;

•changing technologies;

•material failure, interruption of service, compromised data security, phishing emails, or cybersecurity breaches in our information technology (or that of the third-party vendors who provide information technology or other services);

•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;

•geopolitical events, including armed conflicts, and their impact on supply chains, pricing, and the global economy;

•changes in import and export quotas and regulations;

•business conditions in emerging economies;

•costs and results of litigation, including trial and appellate costs;

•changes in accounting standards or inaccurate estimates or assumptions in the application of accounting policies;

•changes in laws and regulations that may have an adverse effect on demand for our products and services, our results of operations, financial condition or cash flows;

•legal, regulatory, and environmental issues, including compliance of our products with mandated specifications, standards, or testing criteria and obligations to remove and replace our products following installation or to recall our products and install different products;

34

•actions by U.S. and/or foreign governments (particularly Mexico and Canada) relative to federal government budgeting, taxation policies, government expenditures, borrowing/debt ceiling limits, tariffs, and trade policies;

•the use of social or digital media to disseminate false, misleading and/or unreliable or inaccurate information; and

•the inability to sufficiently protect our intellectual property rights.

Any forward-looking statement speaks only as of the date on which such statement is made. Except as required by federal securities laws, Trinity undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made. For a discussion of risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in our 2021 Annual Report on Form 10-K, this Form 10-Q and future Forms 10-Q and Current Reports on Forms 8-K.

35

Company Overview

Trinity Industries, Inc. and its consolidated subsidiaries (“Trinity,” “Company,” “we,” “our,” or "us") own businesses that are leading providers of railcar products and services in North America. Our rail-related businesses market their railcar products and services under the trade name TrinityRail®. The TrinityRail platform provides railcar leasing and management services, railcar manufacturing, and railcar maintenance and modification services.

In the fourth quarter of 2021, the Company completed the sale of Trinity Highway Products, LLC (“THP”), a wholly-owned subsidiary of the Company, and certain direct and indirect subsidiaries of THP, to Rush Hour Intermediate II, LLC ("Rush Hour"), an entity owned by an affiliated investment fund of Monomoy Capital Partners, for an aggregate purchase price of $375.0 million, subject to certain adjustments.

We concluded that the sale of THP represented a strategic shift that will have a major effect on the Company’s operations and financial results. Accordingly, we have presented the operating results and cash flows of THP as discontinued operations for all periods in this Quarterly Report on Form 10-Q. Results of prior periods have been recast to reflect these changes and present results on a comparable basis. In connection with the sale of THP, we agreed to indemnify Rush Hour for certain liabilities related to the ET-Plus® System, a highway guardrail end-terminal system (the “ET Plus”). Consequently, results from discontinued operations include certain legal expenses that were directly attributable to the highway products business, which were previously reported in continuing operations. Similar expenses incurred during the three and nine months ended September 30, 2022 and that may be incurred in the future related to these retained obligations will likewise be reported in discontinued operations. See Note 2 of the Consolidated Financial Statements for further information related to the sale of THP and Note 14 for information regarding the retained liabilities.

Following the sale of THP, we report our operating results in two reportable segments: (1) the Railcar Leasing and Management Services Group (the "Leasing Group"), which owns and operates a fleet of railcars and provides third-party fleet leasing, management, and administrative services; and (2) the Rail Products Group, which manufactures and sells railcars and related parts and components, and provides railcar maintenance and modification services. Additionally, we have combined the results of the prior Corporate and All Other groupings into a single Corporate and other grouping. The remaining activity previously reported in All Other primarily includes legal, environmental, and maintenance costs associated with non-operating facilities. Results of prior periods have been recast to reflect these changes and present results on a comparable basis.

Executive Summary

Recent Market Developments

Cyclical, Seasonal and Other Trends Impacting Our Business

The industries in which our customers operate are cyclical in nature. Weaknesses in certain sectors of the North American and global economy may make it more difficult to sell or lease certain types of railcars. Additionally, changes in commodity prices, including fluctuations in the crude oil market, or changes in demand for certain commodities, could impact customer demand for various types of railcars. Further, disruptions in the global supply chain have impacted demand for, and the costs of, certain of our products and services. We continuously assess demand for our products and services and take steps to rationalize and diversify our leased railcar portfolio and align our operating capacity appropriately. We diligently evaluate the creditworthiness of our customers and monitor performance of relevant market sectors; however, weaknesses in any of these market sectors could affect the financial viability of our underlying Leasing Group customers, which could negatively impact our recurring leasing revenues and operating profits.

Railcar loading volumes, levels of railcars in storage, and orders for new railcar equipment have improved, and railcar lease rates and utilization continue to improve. We believe that our rail platform is designed to respond to cyclical changes in demand and perform throughout the railcar cycle.

Steel prices and labor costs have increased significantly since the fourth quarter of 2020 and are major components of our cost of revenues. We typically use contract-specific purchasing practices, existing supplier commitments, contractual price escalation provisions, and other arrangements with our customers to reduce the impact of plate and coil steel price volatility on our operating profit. However, higher steel prices have resulted in increases in the cost of certain railcar components and could reduce demand for new railcars. Additionally, although we remain committed to attracting and retaining a highly skilled and diverse workforce, labor shortages, high turnover, and increases in labor costs have negatively impacted our operations. We continue to monitor the impact of potential margin and operating profit headwinds resulting from these factors.

36

As a result of disruptions in the global supply chain, we have continued to experience shortages of materials used to manufacture or repair certain railcar types, as well as disruptions in the transportation network used to deliver our products, which have impacted our ability to timely deliver these railcars to our customers. While we believe these challenges will be resolved over time, they may persist over the foreseeable future, which could continue to impact our operations. We will continue to monitor the situation and take appropriate steps within our control to mitigate the potential impacts on our production schedules and delivery timelines.

Due to their transactional nature, lease portfolio sales are the primary driver of fluctuations in results in the Leasing Group.

COVID-19

The COVID-19 pandemic significantly impacted global and North American economic conditions. The social and economic effects of the pandemic have been widespread. We continue to monitor the operational and financial impacts of the pandemic and other economic factors. Although we have not experienced significant interruptions to our daily operations or a material impact to our operating costs, the ongoing economic pressures related to the effects of the pandemic have negatively impacted our results of operations for the three and nine months ended September 30, 2022. While we continue to see gradual reduction of the impacts of the pandemic, we are monitoring the impacts of COVID-19 variants on the economy and our workforce.

Please refer to the "Forward-Looking Statements" section above and Part I, Item 1A “Risk Factors” of the 2021 Annual Report on Form 10-K for additional information regarding the potential impacts of COVID-19 on our business.

Financial and Operational Highlights

•Our revenues for the nine months ended September 30, 2022 were $1,386.1 million, representing an increase of 32.8%, compared to the nine months ended September 30, 2021. Our operating profit for the nine months ended September 30, 2022 was $220.5 million compared to $187.6 million for the nine months ended September 30, 2021.

•The Leasing Group's lease fleet of 109,195 company-owned railcars was 97.9% utilized as of September 30, 2022, compared to a lease fleet utilization of 95.0% on 105,915 company-owned railcars as of September 30, 2021. Our company-owned lease fleet includes wholly-owned railcars, partially-owned railcars, and railcars under leased-in arrangements.

•For the nine months ended September 30, 2022, we made a net investment in our lease fleet of approximately $176.3 million, which primarily includes new railcar additions, sustainable railcar conversions, railcar modifications, and other betterments, net of deferred profit, and secondary market purchases; and is net of proceeds from lease portfolio sales.

•The total value of the new railcar backlog at September 30, 2022 was $4.1 billion, compared to $1.2 billion at September 30, 2021. The Rail Products Group received orders for 28,890 railcars and delivered 8,915 railcars in the nine months ended September 30, 2022, in comparison to orders for 8,510 railcars and deliveries of 6,070 railcars in the nine months ended September 30, 2021.

◦In the third quarter of 2022, we entered into a new long-term railcar supply agreement with GATX Corporation (“GATX”) to deliver a mix of 15,000 newly built tank and freight railcars over a six-year period. Our ending backlog at September 30, 2022 includes 15,000 railcars valued at approximately $1.8 billion associated with this agreement.

•The Rail Products Group offers a sustainable railcar conversion program whereby certain tank cars and freight cars are converted or upgraded to better meet changing market demands. During the nine months ended September 30, 2022, sustainable railcar conversion revenues totaled $117.9 million, representing 1,230 railcars.

•For the nine months ended September 30, 2022, operating cash flows from continuing operations was a net use of $52.6 million and Free Cash Flow After Investments and Dividends ("Free Cash Flow") was $0.1 million(1), in comparison to generating operating cash flows from continuing operations and Free Cash Flow of $418.8 million and $510.9 million(1), respectively, for the nine months ended September 30, 2021.

(1) Non-GAAP financial measure. See the Non-GAAP Financial Measures section within this Form 10-Q for a reconciliation to the most directly comparable GAAP measure and why management believes this measure is useful to management and investors.

See "Consolidated Results of Operations" and "Segment Discussion" below for additional information regarding our operating results.

37

Returns of Capital to Shareholders

Returns of capital to shareholders in the form of dividends and share repurchases are summarized below:

(1) Dividend yield is calculated as dividends paid for the four previous quarters divided by the closing stock price on the last trading day of each respective quarter.

(2) In the third quarter of 2021, we completed the existing share repurchase program, and our Board of Directors authorized a new $250.0 million share repurchase program.

(3) In the fourth quarter of 2021, we entered into an additional stock repurchase agreement with ValueAct Capital Master Fund, L.P. ("ValueAct") in a privately negotiated transaction. Additionally, we entered into an accelerated share repurchase agreement (the "ASR") to repurchase $125.0 million of our common stock. See Note 12 of the Consolidated Financial Statements for more information on the ASR.

(4) There were no shares repurchased during the first quarter of 2022 due to the ongoing ASR.

(5) In the second quarter of 2022, we completed the final settlement of the ASR. See Note 12 of the Consolidated Financial Statements for more information on the ASR.

Capital Structure Updates

TRL-2022 – In April 2022, Trinity Rail Leasing 2022 LLC, a Delaware limited liability company ("TRL-2022") and a limited purpose, indirect wholly-owned subsidiary of the Company owned through Trinity Industries Leasing Company ("TILC"), issued $244.8 million of its Series 2022-1 Green Secured Railcar Equipment Notes. These notes bear interest at a fixed rate of 4.55%, are payable monthly, and have a stated final maturity date of 2052. Net proceeds received from the transaction were used to repay borrowings under TILC's warehouse loan facility and for general corporate purposes.

Tribute Rail – In May 2022, Tribute Rail LLC ("Tribute Rail"), an indirect, wholly-owned subsidiary of TRIP Rail Holdings LLC ("TRIP Holdings"), issued $327.0 million of its Series 2022-1 Green Secured Railcar Equipment Notes. These notes bear interest at an all-in interest rate of 4.88% and have a stated final maturity date of 2052. Net proceeds received from the issuance of these notes were used to redeem TRIP Railcar Co. LLC's ("TRIP Railcar Co.") existing term loan agreement, of which $319.4 million was outstanding at the redemption date.

While the stated final maturity date of these debt issuances is in 2052, the cash flows from the encumbered assets of each of TRL-2022 and Tribute Rail will be applied, pursuant to the payment priorities of their respective indentures, so as to amortize their respective notes to achieve monthly targeted principal balances. If the cash flow assumptions used in determining the targeted balances are met, it is anticipated that the notes will be repaid well in advance of their stated final maturity date. There can be no assurance, however, that such cash flow assumptions will be realized. See Note 8 of the Consolidated Financial Statements for more information.

Litigation Updates

See Note 14 of the Consolidated Financial Statements for an update on the status of certain litigation retained in connection with the sale of THP.

38

Consolidated Results of Operations

The following table summarizes our consolidated results of operations for the three and nine months ended September 30, 2022 and 2021:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Revenues	$	496.6	$	419.8	$	1,386.1	$	1,043.8
Cost of revenues	395.3		337.4		1,119.4		785.8
Selling, engineering, and administrative expenses	48.0		45.8		137.7		136.7
Gains on dispositions of property	39.4		41.6		92.5		65.2
Restructuring activities, net	—		(0.1)		1.0		(1.1)
Total operating profit	92.7		78.3		220.5		187.6
Interest expense, net	55.0		45.2		148.2		147.5
Loss on extinguishment of debt	—		—		1.5		11.7
Other, net	(0.6)		(0.7)		(2.7)		1.3
Income from continuing operations before income taxes	38.3		33.8		73.5		27.1
Provision (benefit) for income taxes	8.6		8.3		17.4		9.4
Income from continuing operations	$	29.7	$	25.5	$	56.1	$	17.7

39

Revenues

The tables below present revenues by segment for the three and nine months ended September 30, 2022 and 2021:

	Three Months Ended September 30, 2022
	Revenues						Percent
	External		Intersegment		Total		Change
	(in millions)
Railcar Leasing and Management Services Group	$	194.6	$	0.2	$	194.8	5.0	%
Rail Products Group	302.0		295.3		597.3		75.7	%
Segment Totals	496.6		295.5		792.1		50.8	%
Eliminations – Lease Subsidiary	—		(295.3)		(295.3)
Eliminations – Other	—		(0.2)		(0.2)
Consolidated Total	$	496.6	$	—	$	496.6	18.3	%
	Three Months Ended September 30, 2021
	Revenues
	External		Intersegment		Total
	(in millions)
Railcar Leasing and Management Services Group	$	185.3	$	0.2	$	185.5
Rail Products Group	234.5		105.4		339.9
Segment Totals	419.8		105.6		525.4
Eliminations – Lease Subsidiary	—		(105.3)		(105.3)
Eliminations – Other	—		(0.3)		(0.3)
Consolidated Total	$	419.8	$	—	$	419.8
	Nine Months Ended September 30, 2022
	Revenues						Percent
	External		Intersegment		Total		Change
	(in millions)
Railcar Leasing and Management Services Group	$	572.6	$	0.6	$	573.2	3.4	%
Rail Products Group	813.5		605.5		1,419.0		64.5	%
Segment Totals	1,386.1		606.1		1,992.2		40.6	%
Eliminations – Lease Subsidiary	—		(605.5)		(605.5)
Eliminations – Other	—		(0.6)		(0.6)
Consolidated Total	$	1,386.1	$	—	$	1,386.1	32.8	%
	Nine Months Ended September 30, 2021
	Revenues
	External		Intersegment		Total
	(in millions)
Railcar Leasing and Management Services Group	$	553.6	$	0.5	$	554.1
Rail Products Group	490.2		372.5		862.7
Segment Totals	1,043.8		373.0		1,416.8
Eliminations – Lease Subsidiary	—		(367.6)		(367.6)
Eliminations – Other	—		(5.4)		(5.4)
Consolidated Total	$	1,043.8	$	—	$	1,043.8

40

Operating Costs

Operating costs are comprised of cost of revenues; selling, engineering, and administrative costs; gains or losses on property disposals; and restructuring activities. Operating costs by segment for the three and nine months ended September 30, 2022 and 2021 were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Railcar Leasing and Management Services Group	$	86.9	$	76.2	$	280.0	$	285.4
Rail Products Group	571.3		343.0		1,378.5		871.4
Segment Totals	658.2		419.2		1,658.5		1,156.8
Corporate and other	21.4		23.1		62.2		63.1
Restructuring activities, net	—		(0.1)		1.0		(1.1)
Eliminations – Lease Subsidiary	(275.7)		(100.8)		(556.8)		(358.3)
Eliminations – Other	—		0.1		0.7		(4.3)
Consolidated Total	$	403.9	$	341.5	$	1,165.6	$	856.2

Operating Profit

Operating profit by segment for the three and nine months ended September 30, 2022 and 2021 was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Railcar Leasing and Management Services Group	$	107.9	$	109.3	$	293.2	$	268.7
Rail Products Group	26.0		(3.1)		40.5		(8.7)
Segment Totals	133.9		106.2		333.7		260.0
Corporate and other	(21.4)		(23.1)		(62.2)		(63.1)
Restructuring activities, net	—		0.1		(1.0)		1.1
Eliminations – Lease Subsidiary	(19.6)		(4.5)		(48.7)		(9.3)
Eliminations – Other	(0.2)		(0.4)		(1.3)		(1.1)
Consolidated Total	$	92.7	$	78.3	$	220.5	$	187.6

Discussion of Consolidated Results

Revenues – Our revenues for the three months ended September 30, 2022 were $496.6 million, representing an increase of $76.8 million, or 18.3%, over the prior year period. Our revenues for the nine months ended September 30, 2022 were $1,386.1 million, representing an increase of $342.3 million, or 32.8%, over the prior year period. The increases in revenues were primarily due to a higher volume of, and improved pricing on, external deliveries in the Rail Products Group.

Cost of revenues – Our cost of revenues for the three months ended September 30, 2022 was $395.3 million, representing an increase of $57.9 million, or 17.2%, over the prior year period. Our cost of revenues for the nine months ended September 30, 2022 was $1,119.4 million, representing an increase of $333.6 million, or 42.5%, over the prior year period. The increases in cost of revenues were primarily due to a higher volume of, and input cost inflation associated with, external deliveries in the Rail Products Group.

Selling, engineering, and administrative expenses – Selling, engineering, and administrative expenses were substantially unchanged for the three and nine months ended September 30, 2022 when compared to the prior year periods.

Gains on dispositions of property – Gains on dispositions of property decreased by $2.2 million for the three months ended September 30, 2022 when compared to the prior year period. During the three months ended September 30, 2022 and 2021, we recorded gains of $1.1 million and $4.7 million, respectively, related to insurance recoveries in excess of net book value for assets damaged by a tornado at the Company’s rail maintenance facility in Cartersville, Georgia in the first quarter of 2021. See Note 14 of the Consolidated Financial Statements for more information.

41

Gains on dispositions of property increased by $27.3 million for the nine months ended September 30, 2022 when compared to the prior year period primarily due to higher lease portfolio sales. Results for the nine months ended September 30, 2022 and 2021 included gains of $7.5 million and $4.7 million, respectively, related to insurance recoveries in excess of net book value for assets damaged by a tornado at the Company’s rail maintenance facility in Cartersville, Georgia in the first quarter of 2021. See Note 14 of the Consolidated Financial Statements for more information.

Operating profit – Operating profit for the three months ended September 30, 2022 totaled $92.7 million, representing an increase of $14.4 million, or 18.4%, from the prior year period primarily due to higher deliveries and improved pricing in the Rail Products Group, partially offset by higher fleet operating costs and increased depreciation in the Leasing Group.

Operating profit for the nine months ended September 30, 2022 totaled $220.5 million, representing an increase of $32.9 million, or 17.5%, from the prior year period primarily due to higher lease portfolio sales activity, partially offset by higher costs associated with external deliveries in the Rail Products Group, including the impact of deliveries of orders taken at the bottom of the cycle, as well as higher fleet operating costs and increased depreciation in the Leasing Group. Operating profit was favorably impacted in the current and prior year periods by insurance recoveries related to a tornado at the Company’s rail maintenance facility in Cartersville, Georgia in the first quarter of 2021.

For further information regarding the operating results of individual segments, see "Segment Discussion" below.

Interest expense, net – Interest expense, net for the three months ended September 30, 2022 totaled $55.0 million, compared to $45.2 million for the three months ended September 30, 2021, primarily driven by higher variable interest rates associated with TILC's warehouse loan facility and higher overall average debt.

Interest expense, net for the nine months ended September 30, 2022 totaled $148.2 million, compared to $147.5 million for the nine months ended September 30, 2021, primarily driven by higher variable interest rates associated with TILC's warehouse loan facility and higher overall average debt in 2022, partially offset by lower overall borrowing costs associated with the Company's debt facilities resulting from debt refinancing activity during the second quarter of 2021.

Loss on extinguishment of debt – Loss on extinguishment of debt for the nine months ended September 30, 2022 was $1.5 million from the write-off of unamortized debt issuance costs associated with the repayment of TRIP Railcar Co.'s outstanding term loan agreement. Loss on extinguishment of debt for the nine months ended September 30, 2021 was $11.7 million from the refinancing of our partially-owned subsidiaries' debt, which included the write-off of $8.4 million in unamortized debt issuance costs and a $3.3 million early redemption premium. There was no loss on extinguishment of debt for the three months ended September 30, 2022 and 2021.

Income taxes – The effective tax rate from continuing operations for the three and nine months ended September 30, 2022 was 22.5% and 23.7%, respectively, which differs from the U.S. statutory rate of 21.0% primarily due to state income taxes, foreign taxes, non-deductible executive compensation, excess tax benefits associated with equity-based compensation, taxes not recorded on our non-controlling interests in partially-owned subsidiaries, and a reduction of our uncertain tax positions balance due to a lapse of a state statute of limitations.

For the three months ended September 30, 2021, we recorded income tax expense of $8.3 million on income from continuing operations before income taxes of $33.8 million, which differs from the U.S. statutory rate primarily due to excess tax benefits associated with equity-based compensation. For the nine months ended September 30, 2021, we recorded income tax expense of $9.4 million on income from continuing operations before income taxes of $27.1 million, which differs from the U.S. statutory rate primarily due to adjustments to the Coronavirus Aid, Relief, and Economic Security Act carryback benefit previously recognized, partially offset by excess tax benefits associated with equity-based compensation.

42

Segment Discussion

Railcar Leasing and Management Services Group

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022			2021			Percent		2022			2021			Percent
	($ in millions)						Change		($ in millions)						Change
Revenues:
Leasing and management	$	194.8		$	185.5		5.0	%	$	573.2		$	554.1		3.4	%
Operating profit (1):
Leasing and management	$	73.6		$	76.4		(3.7)	%	$	220.2		$	223.0		(1.3)	%
Lease portfolio sales (2)	34.3			32.9			*		73.0			45.7			*
Total operating profit	$	107.9		$	109.3		(1.3)	%	$	293.2		$	268.7		9.1	%
Total operating profit margin	55.4		%	58.9		%			51.2		%	48.5		%
Leasing and management operating profit margin	37.8		%	41.2		%			38.4		%	40.2		%
Selected expense information:
Depreciation (3)	$	59.1		$	58.7		0.7	%	$	175.7		$	170.5		3.0	%
Maintenance and compliance	$	28.2		$	22.8		23.7	%	$	84.7		$	73.7		14.9	%
Rent and ad valorem taxes	$	5.2		$	5.0		4.0	%	$	15.5		$	14.3		8.4	%
Selling, engineering, and administrative expenses	$	14.2		$	11.6		22.4	%	$	39.6		$	36.1		9.7	%
Interest (4)	$	49.2		$	39.9		23.3	%	$	133.9		$	142.6		(6.1)	%

* Not meaningful

(1) Operating profit includes: depreciation; fleet operating costs, which include maintenance, compliance, freight, and storage; rent and ad valorem taxes; and selling, engineering, and administrative expenses. Amortization of deferred profit on railcars sold from the Rail Products Group to the Leasing Group is included in the operating profits of the Leasing Group, resulting in the recognition of depreciation expense based on our original manufacturing cost of the railcars. Interest expense is not a component of operating profit and includes the effect of hedges.

(2) Includes $1.3 million selling profit associated with sales-type leases for the nine months ended September 30, 2022.

(3) Depreciation expense includes $2.4 million and $8.5 million for the three and nine months ended September 30, 2022, respectively, related to the disposal of certain railcar components associated with our sustainable railcar conversion program. For the three and nine months ended September 30, 2021, depreciation expense includes $4.7 million and $7.3 million, respectively, related to our sustainable railcar conversion program.

(4) Interest expense for the nine months ended September 30, 2022 includes $1.5 million of loss on extinguishment of debt associated with the repayment of TRIP Railcar Co.'s outstanding term loan agreement. Interest expense for the nine months ended September 30, 2021 includes $11.7 million of loss on extinguishment of debt associated with the refinancing of our partially-owned subsidiaries' debt.

Information related to lease portfolio sales is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	($ in millions)
Lease portfolio sales	$	299.6		$	322.1		$	514.8		$	410.9
Operating profit on lease portfolio sales (1)	$	34.3		$	32.9		$	71.7		$	45.7
Operating profit margin on lease portfolio sales	11.4		%	10.2		%	13.9		%	11.1		%

(1) Excludes $1.3 million selling profit associated with sales-type leases for the nine months ended September 30, 2022.

Total revenues for the Railcar Leasing and Management Services Group increased by 5.0% and 3.4% for the three and nine months ended September 30, 2022, respectively, compared to the prior year periods. Leasing and management revenues for the three and nine months ended September 30, 2022 were favorably impacted by higher utilization, improved renewal rates, and the effect of net lease fleet investment activities, which resulted in higher revenues when compared to the three and nine months ended September 30, 2021.

43

Operating profit for the Leasing Group decreased by 1.3% for the three months ended September 30, 2022 and increased by 9.1% for the nine months ended September 30, 2022, compared to the prior year periods. Operating profit for the nine months ended September 30, 2022 was favorably impacted by higher lease portfolio sale activity. Leasing and management operating profit for the three and nine months ended September 30, 2022 decreased by 3.7% and 1.3%, respectively, compared to the prior year periods primarily due to higher fleet operating costs and increased depreciation, partially offset by higher utilization on a larger lease fleet.

The Leasing Group generally uses its non-recourse warehouse loan facility or cash to provide initial funding for a portion of the purchase price of the railcars. After initial funding, the Leasing Group may obtain long-term financing for the railcars in the lease fleet through non-recourse asset-backed securities; long-term non-recourse operating leases pursuant to sale-leaseback transactions; long-term recourse debt such as equipment trust certificates; long-term non-recourse promissory notes; or third-party equity.

Information regarding the Leasing Group’s lease fleet is as follows:

	September 30, 2022		September 30, 2021
Number of railcars:
Wholly-owned (1)	85,280		81,395
Partially-owned	23,915		24,520
	109,195		105,915
Investor-owned	33,245		30,060
	142,440		135,975
Company-owned railcars (2):
Average age in years	12.1		10.9
Average remaining lease term in years	3.0		2.9
Fleet utilization	97.9	%	95.0	%

(1) Includes 2,805 railcars and 2,280 railcars under leased-in arrangements as of September 30, 2022 and 2021, respectively.

(2) Includes wholly-owned railcars, partially-owned railcars, and railcars under leased-in arrangements.

44

Rail Products Group

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022			2021			Percent		2022			2021			Percent
	($ in millions)						Change		($ in millions)						Change
Revenues:
Rail products (1)	$	531.1		$	297.6		78.5	%	$	1,228.5		$	709.2		73.2	%
Maintenance services	51.9			33.3			55.9	%	151.9			124.4			22.1	%
Other	14.3			9.0			58.9	%	38.6			29.1			32.6	%
Total revenues	$	597.3		$	339.9		75.7	%	$	1,419.0		$	862.7		64.5	%
Operating costs:
Cost of revenues	563.5			339.5			66.0	%	1,360.3			850.7			59.9	%
Selling, engineering, and administrative expenses	8.7			8.3			4.8	%	25.4			25.4			—	%
Gains on dispositions of property	(0.9)			(4.8)			*		(7.2)			(4.7)			*
Operating profit (loss)	$	26.0		$	(3.1)		*		$	40.5		$	(8.7)		*
Operating profit (loss) margin	4.4		%	(0.9)		%			2.9		%	(1.0)		%

* Not meaningful

(1) Includes sustainable railcar conversion revenues of $28.9 million, representing 300 railcars, for the three months ended September 30, 2022 and sustainable railcar conversion revenues of $117.9 million, representing 1,230 railcars, for the nine months ended September 30, 2022. Includes sustainable railcar conversion revenues of $26.0 million, representing 242 railcars for the three months ended September 30, 2021 and sustainable railcar conversion revenues of $38.8 million, representing 361 railcars for the nine months ended September 30, 2021.

Revenues for the Rail Products Group increased for the three and nine months ended September 30, 2022 by 75.7% and 64.5%, respectively, when compared to the prior year periods. Revenues in our rail products business increased as a result of higher deliveries, favorable pricing, and price escalation provisions contained in our customer contracts, and revenues in our maintenance services business increased as a result of a higher mix of HM-251 modifications relative to other maintenance services revenues.

Cost of revenues for the Rail Products Group increased for the three and nine months ended September 30, 2022 by 66.0% and 59.9%, respectively, when compared to the prior year periods. In our rail products business, the increase in cost of revenues was driven by higher deliveries and input cost inflation, as well as operational inefficiencies associated with supply chain disruptions. In our maintenance services business, cost of revenues increased as a result of a higher volume of HM-251 modifications. Cost of revenues for the nine months ended September 30, 2022 were further impacted by the introduction of additional products into the production line in our rail products business and continued to be negatively impacted by labor shortages leading to operating inefficiencies in our maintenance services business.

Operating profit for the three and nine months ended September 30, 2022 was favorably impacted by higher deliveries and improved pricing, partially offset by disruptions in the transportation network used to deliver our products. Operating profit for the nine months ended September 30, 2022 was unfavorably impacted by deliveries of orders taken at the bottom of the cycle. Additionally, during the three and nine months ended September 30, 2022 and 2021, operating profit was favorably impacted by insurance recoveries related to a tornado at the Company’s rail maintenance facility in Cartersville, Georgia in the first quarter of 2021.

45

Information related to our Rail Products Group backlog of new railcars is as follows. In addition to the amounts below, as of September 30, 2022, our backlog related to sustainable railcar conversions totaled $201.4 million, representing 2,420 railcars.

	September 30,
	2022		2021		Percent
	(in millions)				Change
External customers (1)	$	3,573.7	$	980.9
Leasing Group	517.2		247.5
Total (2)	$	4,090.9	$	1,228.4	233.0	%

	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022		2021		Percent
							Change
Beginning balance	18,090	11,305	13,980		8,985
Orders received (1)	19,500	2,530	28,890		8,510		239.5	%
Deliveries	(3,935)	(2,410)	(8,915)		(6,070)		46.9	%
Other adjustments (2)	—	—	(300)		—
Ending balance	33,655	11,425	33,655		11,425		194.6	%
Average selling price in ending backlog			$	121,554	$	107,519	13.1	%

(1) Ending backlog and orders received for the three and nine months ended September 30, 2022 include 15,000 railcars valued at approximately $1.8 billion associated with a new long-term railcar supply agreement with GATX.

(2) The adjustment for the nine months ended September 30, 2022 includes 300 railcars valued at $34.6 million that were removed from the new railcar backlog and shifted to the sustainable railcar conversion backlog.

Total backlog dollars increased by 233.0% when compared to the prior year period primarily from an increase in the volume and average selling price of orders received. We expect to deliver approximately 16.2% of our railcar backlog value during 2022 and 35.5% during 2023, with the remainder to be delivered through 2028. The orders in our backlog from the Leasing Group are fully supported by lease commitments with external customers. The final amount of backlog attributable to the Leasing Group may vary by the time of delivery as customers may elect to change their procurement decision.

Transactions between the Rail Products Group and the Leasing Group are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	($ in millions)
Revenues:
New railcars	$	229.2	$	70.8	$	423.9	$	279.2
Sustainable railcar conversions	$	28.9	$	26.0	$	89.2	$	38.8
Other maintenance services	$	37.2	$	8.5	$	92.4	$	49.6
Deferred profit	$	19.6	$	4.5	$	48.7	$	9.3
Number of new railcars (in units)	1,735		670		3,205		2,741
Number of sustainable railcar conversions (in units)	300		242		860		361

46

Corporate and other

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022		2021		Percent		2022		2021		Percent
	(in millions)				Change		(in millions)				Change
Operating costs:
Selling, engineering, and administrative expenses	$	25.1	$	25.9	(3.1)	%	$	72.7	$	75.2	(3.3)	%
Gains on dispositions of property	(3.7)		(2.8)		*		(10.5)		(12.1)		*
Operating loss	$	(21.4)	$	(23.1)	(7.4)	%	$	(62.2)	$	(63.1)	(1.4)	%

* Not meaningful

Selling, engineering, and administrative expenses for the three and nine months ended September 30, 2022 decreased 3.1% and 3.3%, respectively, compared to the prior year periods, primarily from lower litigation-related expenses. Total operating costs in the three and nine months ended September 30, 2022 and 2021 were favorably impacted by gains associated with the disposition of non-operating facilities. As we continue to streamline our operational footprint, we may have additional gains or losses on the disposition of other non-operating facilities.

47

Liquidity and Capital Resources

Overview

We expect to finance future operating requirements with cash, cash equivalents, and short-term marketable securities; cash flows from operations; and short-term debt, long-term debt, and equity. Debt instruments that we have utilized include the TILC warehouse loan facility, senior notes, convertible subordinated notes, asset-backed securities, non-recourse promissory notes, sale-leaseback transactions, and our revolving credit facility.

As of September 30, 2022, we have total committed liquidity of $464.7 million. Our total available liquidity includes: $58.5 million of unrestricted cash and cash equivalents; $264.1 million unused and available under our revolving credit facility; and $142.1 million unused and available under the TILC warehouse loan facility based on the amount of warehouse-eligible, unpledged equipment. We believe we have access to adequate capital resources to fund operating requirements and are an active participant in the capital markets.

Liquidity Highlights

TRL-2022 – In April 2022, TRL-2022 issued $244.8 million of its Series 2022-1 Green Secured Railcar Equipment Notes. These notes bear interest at a fixed rate of 4.55% and have a stated final maturity date of 2052. Net proceeds received from the transaction were used to repay borrowings under TILC's warehouse loan facility and for general corporate purposes.

Dividend Payments – We paid $58.3 million in dividends to our common stockholders during the nine months ended September 30, 2022.

Share Repurchase Authorization – In September 2021, our Board of Directors authorized a new share repurchase program effective September 9, 2021 through December 31, 2022. The new share repurchase program authorizes the Company to repurchase up to $250.0 million of its common stock. In December 2021, using a portion of the proceeds from the sale of THP, we entered into an ASR to repurchase $125.0 million of our common stock. Approximately 3.3 million shares repurchased as part of the ASR on December 31, 2021 were delivered to the Company in January 2022 in accordance with normal settlement practices, representing approximately 80% of the total notional value of the ASR. The ASR was completed in April 2022. Share repurchase activity under the authorized program is as follows:

	Shares Repurchased			Remaining Authorization to Repurchase
Period	Number of shares	Cost (in millions)		Cost (in millions)
September 9, 2021 Authorization				$	250.0
September 9, 2021 through September 30, 2021	—	$	—	$	250.0
October 1, 2021 through December 31, 2021	5,155,491	151.9		$	98.1
January 1, 2022 through March 31, 2022	—	—		$	98.1
April 1, 2022 through June 30, 2022	1,760,462	50.3		$	47.8	(1)
July 1, 2022 through September 30, 2022	610,000	14.1		$	33.7
Total	7,525,953	$	216.3

(1) Share repurchases during the second quarter of 2022 included 760,602 shares at a cost of $25.0 million representing the final settlement of the ASR, which was funded in December 2021 but a portion of which remained outstanding as of December 31, 2021.

48

Cash Flows

The following table summarizes our cash flows from operating, investing, and financing activities for the nine months ended September 30, 2022 and 2021:

	Nine Months Ended September 30,
	2022		2021
	(in millions)
Net cash flows from continuing operations:
Operating activities	$	(52.6)	$	418.8
Investing activities	(186.1)		47.8
Financing activities	193.1		(354.1)
Net cash flows from discontinued operations	(18.1)		4.2
Net increase (decrease) in cash, cash equivalents, and restricted cash	$	(63.7)	$	116.7

Operating Activities. Net cash used in operating activities from continuing operations for the nine months ended September 30, 2022 was $52.6 million compared to net cash provided by operating activities from continuing operations of $418.8 million for the nine months ended September 30, 2021. The changes in our operating assets and liabilities are as follows:

	Nine Months Ended September 30,
	2022		2021
	(in millions)
(Increase) decrease in receivables, inventories, and other assets	$	(325.4)	$	(89.0)
(Increase) decrease in income tax receivable	(5.6)		249.8
Increase (decrease) in accounts payable, accrued liabilities, and other liabilities	67.7		58.9
Changes in operating assets and liabilities	$	(263.3)	$	219.7

The changes in our operating assets and liabilities resulted in a net use of $263.3 million for the nine months ended September 30, 2022, as compared to a net source of $219.7 million for the nine months ended September 30, 2021. Operating assets in the current period were impacted by cyclical shifts in anticipation of higher volumes of railcar deliveries in future periods, as well as continued supply chain challenges. The decrease in the income tax receivable in the prior year period was primarily driven by the collection of approximately $248.3 million of income tax refunds associated with the loss carryback provisions included in recent tax legislation.

Investing Activities. Net cash used in investing activities from continuing operations for the nine months ended September 30, 2022 was $186.1 million compared to $47.8 million of net cash provided by investing activities from continuing operations for the nine months ended September 30, 2021. Significant investing activities are as follows:

•We made a net investment in our lease fleet of $176.3 million during the nine months ended September 30, 2022, compared to proceeds received from lease portfolio sales exceeding the investment in our lease fleet by approximately $40.6 million in the prior year period. Our investment in the lease fleet primarily includes new railcar additions, sustainable railcar conversions, railcar modifications, and other betterments, net of deferred profit, and secondary market purchases; and is net of proceeds from lease portfolio sales.

•During the nine months ended September 30, 2022, we acquired a company that owns and operates an end-to-end rail logistics software platform providing a real-time data universe to freight rail shippers and operators for net cash of $9.4 million. During the nine months ended September 30, 2021, we acquired a company that owns and operates proprietary railcar cleaning technology systems for net cash of $16.5 million.

•We purchased equity investments totaling $15.5 million and $0.2 million during the nine months ended September 30, 2022 and 2021, respectively, primarily related to our investments in Signal Rail Holdings LLC. See Note 5 of the Consolidated Financial Statements.

49

Financing Activities. Net cash provided by financing activities during the nine months ended September 30, 2022 was $193.1 million compared to $354.1 million of net cash used in financing activities for the same period in 2021. Significant financing activities are as follows:

•During the nine months ended September 30, 2022, we had total borrowings of $1,664.5 million and total repayments of $1,351.5 million, for net proceeds of $313.0 million, primarily from debt proceeds to support our investment in the lease fleet. During the nine months ended September 30, 2021, we had total borrowings of $2,393.7 million and total repayments of $2,256.8 million, for net proceeds of $136.9 million, primarily from debt proceeds to support our investment in the lease fleet.

•We paid $58.3 million and $68.5 million in dividends to our common stockholders during the nine months ended September 30, 2022 and 2021, respectively.

•We repurchased common stock totaling $36.8 million and $406.5 million during the nine months ended September 30, 2022 and 2021, respectively. The current year period excludes $25.0 million representing the final settlement of the ASR, which was funded in December 2021 but a portion of which remained outstanding as of December 31, 2021. Certain shares of stock repurchased during September 2022, totaling $2.6 million, were cash settled in October 2022 in accordance with normal settlement practices. The prior year period includes shares repurchased in a privately negotiated transaction with ValueAct totaling $222.5 million.

Current Debt Obligations

The revolving credit facility contains several financial covenants that require the maintenance of ratios related to minimum interest coverage for the leasing and manufacturing operations and maximum leverage. In July 2022, we amended our revolving credit facility to increase the maximum leverage ratio to provide additional flexibility. A summary of our financial covenants is detailed below:

Ratio	Covenant	Actual at September 30, 2022
Maximum leverage (1)	No greater than 4.25 to 1.00	2.70
Minimum interest coverage (2)	No less than 2.25 to 1.00	6.57

(1) Defined as the ratio of consolidated total indebtedness to consolidated earnings before interest, taxes, depreciation and amortization ("EBITDA") for the Borrower and its restricted subsidiaries for the period of four consecutive quarters ending with September 30, 2022.

(2) Defined as the ratio of the difference of (A) consolidated EBITDA less (B) consolidated capital expenditures – manufacturing and other to consolidated interest expense to the extent paid in cash, in each case for the Borrower and its restricted subsidiaries for the period of four consecutive quarters ending with September 30, 2022.

As of September 30, 2022, we were in compliance with all such financial covenants. Please refer to Note 8 of the Consolidated Financial Statements for a description of our current debt obligations.

50

Supplemental Guarantor Financial Information

Our 4.55% senior notes due 2024 ("Senior Notes") are fully and unconditionally and jointly and severally guaranteed by certain of Trinity’s 100%-owned subsidiaries: Trinity Industries Leasing Company; Trinity North American Freight Car, Inc.; Trinity Rail Group, LLC; Trinity Tank Car, Inc.; and TrinityRail Maintenance Services, Inc. (collectively, the "Guarantor Subsidiaries”).

The Senior Notes indenture agreement includes customary provisions for the release of the guarantees by the Guarantor Subsidiaries upon the occurrence of certain allowed events including the release of one or more of the Guarantor Subsidiaries as guarantor under our revolving credit facility. See Note 8 of our 2021 Annual Report on Form 10-K. The Senior Notes are not guaranteed by any of our remaining 100%-owned subsidiaries or partially-owned subsidiaries (“Non-Guarantor Subsidiaries”).

As of September 30, 2022, assets held by the Non-Guarantor Subsidiaries included $168.4 million of restricted cash that was not available for distribution to Trinity Industries, Inc. (“Parent”), $7,167.1 million of equipment securing certain non-recourse debt, and $607.8 million of assets located in foreign locations. As of December 31, 2021, assets held by the Non-Guarantor Subsidiaries included $79.6 million of restricted cash that was not available for distribution to the Parent, $6,595.5 million of equipment securing certain non-recourse debt, and $414.8 million of assets located in foreign locations.

The following tables include the summarized financial information for Parent and Guarantor Subsidiaries (together, the obligor group) on a combined basis after elimination of intercompany transactions within the obligor group (in millions). Investments in and equity in the earnings of the Non-Guarantor Subsidiaries (the non-obligor group) have been excluded.

			Nine Months Ended September 30, 2022
Summarized Statement of Operations:
Revenues (1)			$	846.6
Cost of revenues (2)			$	793.0
Income (loss) from continuing operations			$	(59.6)
Net income (loss) (3)			$	(77.9)
	September 30, 2022		December 31, 2021
Summarized Balance Sheets:
Assets:
Receivables, net of allowance (4)	$	289.0	$	245.8
Inventories	$	641.6	$	409.4
Property, plant, and equipment, net	$	447.8	$	953.3
Goodwill and other assets	$	415.0	$	385.7
Liabilities:
Accounts payable and accrued liabilities (5)	$	389.5	$	337.0
Debt	$	459.0	$	398.7
Deferred income taxes	$	944.7	$	926.2
Other liabilities	$	139.4	$	147.0
Noncontrolling interest	$	255.2	$	267.0

(1) There were no net sales from the obligor group to Non-Guarantor Subsidiaries during the nine months ended September 30, 2022.

(2) Cost of revenues includes $193.0 million of purchases from Non-Guarantor Subsidiaries during the nine months ended September 30, 2022.

(3) Net income (loss) includes $18.3 million of net loss related to discontinued operations.

(4) Receivables, net of allowance includes $98.4 million and $93.5 million of receivables from Non-Guarantor Subsidiaries as of September 30, 2022 and December 31, 2021, respectively.

(5) Accounts payable includes $38.6 million and $29.7 million of payables to Non-Guarantor Subsidiaries as of September 30, 2022 and December 31, 2021, respectively.

51

Capital Expenditures

For the full year 2022, we anticipate a net investment in our lease fleet of between $250 million and $300 million. Capital expenditures related to manufacturing and other activities, including expansion of our fleet maintenance capabilities and systems upgrades, are projected to range between $35 million and $45 million for the full year 2022.

Equity Investment

See Note 5 of the Consolidated Financial Statements for information about our investment in partially-owned leasing subsidiaries.

Off Balance Sheet Arrangements

As of September 30, 2022, we had letters of credit issued under our revolving credit facility in an aggregate amount of $4.9 million, the majority of which are expected to expire in November 2023. Our letters of credit obligations support performance bonds related to certain railcar orders. See Note 8 of the Consolidated Financial Statements for further information about our corporate revolving credit facility.

Derivative Instruments

We use derivative instruments to mitigate interest rate risk, including risks associated with the impact of changes in interest rates in anticipation of future debt issuances and to offset interest rate variability of certain floating rate debt issuances outstanding. We also may use derivative instruments from time to time to mitigate the impact of changes in foreign currency exchange rates. Derivative instruments that are designated and qualify as cash flow hedges are accounted for in accordance with applicable accounting standards. See Note 3 of the Consolidated Financial Statements for discussion of how we utilize our derivative instruments.

LIBOR Transition

The United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate ("LIBOR"), has announced that it will no longer persuade or require banks to submit rates for the calculation of LIBOR after June 2023. In the U.S., the Alternative Reference Rates Committee has identified the Secured Overnight Financing Rate ("SOFR") as its preferred alternative to LIBOR. During the third quarter of 2022, we amended our corporate revolving credit facility and warehouse loan facility to transition the facility benchmark rate from LIBOR to SOFR plus a benchmark adjustment. We currently have LIBOR-based contracts that extend beyond June 2023 related to promissory notes and derivative instruments for Trinity Rail Leasing 2017 LLC. After LIBOR is phased out, the interest rates for these obligations might be subject to change. The replacement of LIBOR with an alternative benchmark reference rate may adversely affect interest rates and result in higher borrowing costs under these agreements and any future agreements.

52

Non-GAAP Financial Measures

We have included financial measures compiled in accordance with GAAP and certain non-GAAP measures in this Quarterly Report on Form 10-Q to provide management and investors with additional information regarding our financial results. Non-GAAP measures should not be considered in isolation or as a substitute for our reporting results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures for other companies. For each non-GAAP financial measure, we provide a reconciliation to the most comparable GAAP measure.

Free Cash Flow

Total Free Cash Flow After Investments and Dividends ("Free Cash Flow") is a non-GAAP financial measure. We believe Free Cash Flow is useful to both management and investors as it provides a relevant measure of liquidity and a useful basis for assessing our ability to fund our operations and repay our debt. Free Cash Flow is reconciled to net cash provided by (used in) operating activities from continuing operations, the most directly comparable GAAP financial measure, in the following table.

Free Cash Flow is defined as net cash provided by (used in) operating activities from continuing operations as computed in accordance with GAAP, plus cash proceeds from lease portfolio sales, less capital expenditures for manufacturing, dividends paid, and Equity CapEx for leased railcars. Equity CapEx for leased railcars is defined as leasing capital expenditures, adjusted to exclude net proceeds from (repayments of) debt.

	Nine Months Ended September 30,
	2022		2021
	(in millions)
Net cash provided by (used in) operating activities – continuing operations	$	(52.6)	$	418.8
Proceeds from lease portfolio sales	514.8		404.5
Adjusted Net Cash Provided by Operating Activities	462.2		823.3
Capital expenditures – manufacturing and other	(25.7)		(16.9)
Dividends paid to common stockholders	(58.3)		(68.5)
Free Cash Flow (before Capital expenditures – leasing)	378.2		737.9
Equity CapEx for leased railcars	(378.1)		(227.0)
Total Free Cash Flow After Investments and Dividends	$	0.1	$	510.9
Capital expenditures – leasing	$	691.1	$	363.9
Less:
Payments to retire debt	(1,351.5)		(2,256.8)
Proceeds from issuance of debt	1,664.5		2,393.7
Net proceeds from (repayments of) debt	313.0		136.9
Equity CapEx for leased railcars	$	378.1	$	227.0

Contractual Obligations and Commercial Commitments

Except as described below, as of September 30, 2022, there have been no material changes to our contractual obligations from December 31, 2021:

•In April 2022, TRL-2022 issued $244.8 million of its Series 2022-1 Green Secured Railcar Equipment Notes. These notes have a stated final maturity date of 2052.

•In May 2022, Tribute Rail issued $327.0 million of its Series 2022-1 Green Secured Railcar Equipment Notes. These notes have a stated final maturity date of 2052. Net proceeds received from the issuance of these notes were used to redeem TRIP Railcar Co.'s existing term loan agreement, of which $323.7 million was outstanding at December 31, 2021.

See Note 8 of the Consolidated Financial Statements for additional information regarding these debt transactions.

Recent Accounting Pronouncements

See Note 1 of the Consolidated Financial Statements for information about recent accounting pronouncements.

53

Item 3. Quantitative and Qualitative Disclosures about Market Risk

There has been no material change in our market risks since December 31, 2021 as set forth in Item 7A of our 2021 Annual Report on Form 10-K. Refer to Note 3 and Note 8 of the Consolidated Financial Statements for a discussion of the impact of hedging activity and debt-related activity, respectively, for the three and nine months ended September 30, 2022.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

We maintain disclosure controls and procedures designed to ensure that we are able to collect and record the information we are required to disclose in the reports we file with the SEC, and to process, summarize, and disclose this information within the time periods specified in the rules of the SEC. Our Chief Executive and Chief Financial Officers are responsible for establishing and maintaining these procedures and, as required by the rules of the SEC, evaluating their effectiveness. Based on their evaluation of our disclosure controls and procedures that took place as of the end of the period covered by this report, the Chief Executive and Chief Financial Officers concluded that these procedures are effective to 1) ensure that we are able to collect, process, and disclose the information we are required to disclose in the reports we file with the SEC within the required time periods and 2) accumulate and communicate this information to our management, including our Chief Executive and Chief Financial Officers, to allow timely decisions regarding this disclosure.

Internal Controls over Financial Reporting

During the period covered by this report, there have been no changes in our internal controls over financial reporting that have materially affected or are reasonably likely to materially affect our internal controls over financial reporting.

54

PART II

Item 1. Legal Proceedings

The information provided in Note 14 of the Consolidated Financial Statements is hereby incorporated into this Part II, Item 1 by reference.

Item 1A. Risk Factors

There have been no material changes from the risk factors previously disclosed in Item 1A of our 2021 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

This table provides information with respect to purchases by the Company of shares of its common stock during the quarter ended September 30, 2022:

Period	Number of Shares Purchased (1)	Average Price Paid per Share (1)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) (in millions)
July 1, 2022 through July 31, 2022	26,886	$	25.60	25,000	$	47.2
August 1, 2022 through August 31, 2022	76,109	$	25.73	75,000	$	45.3
September 1, 2022 through September 30, 2022	510,864	$	22.62	510,000	$	33.7
Total	613,859			610,000

(1) These columns include the following transactions during the three months ended September 30, 2022: (i) the surrender to the Company of 3,666 shares of common stock to satisfy tax withholding obligations in connection with the vesting of restricted stock issued to employees, (ii) the purchase of 193 shares of common stock by the Trustee for assets held in a non-qualified employee profit sharing plan trust, and (iii) the purchase of 610,000 shares of common stock on the open market as part of our share repurchase program.

(2) In September 2021, our Board of Directors authorized a new share repurchase program effective September 9, 2021 through December 31, 2022. The new share repurchase program authorizes the Company to repurchase up to $250.0 million of its common stock. In December 2021, we entered into an ASR to repurchase $125.0 million of our common stock. Approximately 3,311,258 shares repurchased as part of the ASR were delivered to us in January 2022, representing approximately 80% of the total notional value of the ASR. The ASR was completed in April 2022. Shares repurchased during the three months ended September 30, 2022 totaled 610,000 shares, at a cost of approximately $14.1 million. As of September 30, 2022, the Company had a remaining authorization to repurchase up to $33.7 million of its common stock under the share repurchase program. Certain shares of stock repurchased during September 2022, totaling $2.6 million, were cash settled in October 2022 in accordance with normal settlement practices.The approximate dollar value of shares that were eligible to be repurchased under our share repurchase program is shown as of the end of such month or quarter.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

55

Item 6. Exhibits

NO.	DESCRIPTION
3.1	Amended and Restated Bylaws of Trinity Industries, Inc., effective September 7, 2022 (filed herewith).
10.1	Second Amended and Restated Credit Agreement, dated as of July 25, 2022, by and among the Trinity Industries, Inc., as borrower, the lenders party thereto, JPMorgan Chase Bank, National Association, as administrative agent, Bank of America, N.A. and Truist Bank, as co-syndication agents, and Wells Fargo Bank, N.A., Regions Bank, and PNC Bank, National Association, as co-documentation agents (incorporated by reference to Exhibit 10.3 to our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2022).
10.2	First Amendment to the Fifth Amended and Restated Warehouse Loan Agreement dated as of August 29, 2022, among Trinity Industries Leasing Company, Trinity Rail Leasing Warehouse Trust, Credit Suisse AG, New York Branch, as Agent, and Wilmington Trust Company, as Collateral Agent and Depositary (incorporated by reference to Exhibit 10.1 to our Form 8-K filed on September 1, 2022).
22.1	Subsidiary guarantors and issuers of guaranteed securities
31.1	Rule 13a-15(e) and 15d-15(e) Certification of the Chief Executive Officer (filed herewith).
31.2	Rule 13a-15(e) and 15d-15(e) Certification of the Chief Financial Officer (filed herewith).
32.1	Certification pursuant to 18U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32.2	Certification pursuant to 18U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document (filed electronically herewith).
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed electronically herewith).
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document (filed electronically herewith).
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed electronically herewith).
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document (filed electronically herewith).
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

_____________________________

56

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TRINITY INDUSTRIES, INC.	By:	/s/ Eric R. Marchetto
Registrant
		Eric R. Marchetto
		Executive Vice President and Chief Financial Officer
		October 25, 2022

57

EX-3.1

Exhibit 3.1

As Amended Effective September 7, 2022

BYLAWS

OF

TRINITY INDUSTRIES, INC.

ARTICLE I.

Offices

    Section 1.     Registered Office. The registered office shall be located in the City of Wilmington, County of New Castle, State of Delaware.

    Section 2.    Other Offices. The corporation may also have offices at such other places within or without the State of Delaware as the Board of Directors may from time to time determine, or as the business of the corporation may require.

ARTICLE II.

Meetings of Stockholders

    Section 1.    Location of Meetings. Meetings of the stockholders for any purpose shall be held at such time and place, either within or without the State of Delaware, as shall be designated from time to time by the Board of Directors and stated in the notice of the meeting or in a duly executed waiver of notice thereof.

    Section 2.    Annual Meetings of Stockholders. The annual meeting of stockholders shall be held on such date and at such time as shall be designated from time to time by the Board of Directors and stated in the notice of the meeting. Nominations for election to the Board of Directors shall be made at such meeting only by or at the direction of the Board of Directors, by a nominating committee or person appointed by the Board of Directors, or by a stockholder of the corporation entitled to vote for the election of directors at the meeting who complies with the notice procedures set forth in this Section 2 and nominates such proposed nominee in person or by proxy at the annual meeting of stockholders. Such nominations, other than those made by or at the direction of the Board of Directors, shall be made pursuant to timely notice in writing to the Secretary of the corporation. To be timely, a stockholder's notice shall be delivered to, or mailed and received at, the principal executive offices of the corporation not less than sixty (60) days nor more than ninety (90) days prior to the anniversary date of the immediately preceding annual meeting of stockholders; provided, however, that in the event that the annual meeting is called for a date that is not within thirty (30) days before or after such anniversary date, notice by the stockholder in order to be timely must be so received not later than the close of business on the later of (i) the sixtieth (60th) day prior to such annual meeting or (ii) the tenth (10th) day following the day on which public announcement of the date of such meeting is first made. For purposes of these Bylaws, “public announcement” shall mean disclosure in a press release reported by the Dow Jones News Service, Associated Press or a comparable national news service or in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Securities Exchange Act of 1934, as amended. Such stockholder's notice to the Secretary shall set forth (a) as to each person whom the stockholder proposes to nominate for election or re-election as a director, (i) the name, age, business address and residence address of the person, (ii) the principal occupation or employment of the person, (iii) the class and number of shares of capital stock of the corporation which are beneficially owned by the person, and (iv) any other information relating to the person

that is required to be disclosed in solicitations for proxies for election of directors pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended; and (b) as to the stockholder giving the notice, (i) the name and record address of the stockholder, (ii) the class and number of shares of capital stock of the corporation which are beneficially owned by the stockholder, (iii) a description of all arrangements or understandings between such stockholder and each proposed nominee and any other person or persons (including their names) pursuant to which the nomination(s) are to be made by such stockholder, (iv) a representation that such stockholder intends to appear in person or by proxy at the meeting to nominate the persons named in its notice and (v) any other information relating to such stockholder that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of directors pursuant to Section 14 of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. To be eligible to be a nominee for election or re-election as a director, a person nominated for election or re-election as a director must deliver a written representation and agreement that such person will comply, if elected or re-elected as a director of the corporation, with all policies and guidelines applicable to all directors of the corporation, including, without limitation, all applicable corporate governance, conflict of interest and confidentiality policies and guidelines. The corporation may require any proposed nominee to furnish such other information as may reasonably be required by the corporation to determine the eligibility of such proposed nominee to serve as director of the corporation. No person shall be eligible for election as a director of the corporation unless nominated in accordance with the procedures set forth herein.

    The Chairman of the meeting shall, if the facts warrant, determine and declare to the meeting that a nomination was not made in accordance with the foregoing procedure, and if he should so determine, he shall so declare to the meeting and the defective nomination shall be disregarded.

    At each annual meeting of the stockholders, only such business shall be conducted as shall have properly been brought before the meeting. To be properly before the meeting, the business to be conducted must be specified in the notice of meeting (or any supplement thereto) given by or at the direction of the Board of Directors, otherwise properly brought before the meeting by or at the direction of the Board of Directors, or otherwise properly brought before the meeting by a stockholder entitled to vote at the meeting. In addition to any other applicable requirements, for business to be properly brought before the meeting by a stockholder, the stockholder must have given timely notice thereof in writing to the Secretary of the corporation and present such business in person or by proxy at the annual meeting of stockholders. To be timely, a stockholder's notice shall be delivered to, or mailed and received at, the principal executive offices of the corporation not less than sixty (60) days nor more than ninety days prior to the anniversary date of the immediately preceding annual meeting of stockholders; provided, however, that in the event that the annual meeting is called for a date that is not within thirty days before or after such anniversary date, notice by the stockholder in order to be timely must be so received not later than the close of business on the later of (i) the sixtieth (60th) day prior to such annual meeting or (ii) the tenth (10th) day following the day on which public announcement of the date of such meeting is first made. A stockholder's notice to the Secretary of the corporation shall set forth as to each matter that the stockholder proposes to bring before the annual meeting, (i) a brief description of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting, (ii) the name and record address of the stockholder proposing such business, (iii) the class and number of shares of the corporation which are beneficially owned by the stockholder, (iv) a description of all arrangements or understandings between such stockholder and any other person or persons (including their names) in connection with the proposal of such business by such stockholder and any material interest of such stockholder in such business and (v) a representation that such stockholder intends to appear in person or by proxy at the annual meeting to bring such business before the meeting. Notwithstanding the foregoing provisions of this Section 2, a stockholder

2

seeking to have a proposal included in the corporation's proxy statement shall comply with the requirements of Regulation 14A under the Securities Exchange Act of 1934, as amended (including, but not limited to, Rule 14a-8 or its successor provision), including the requirements regarding appearance and presentation of the proposal at the stockholder meeting.

    Notwithstanding anything in these Bylaws to the contrary, no business shall be conducted at the annual meeting except in accordance with the procedures set forth in this Section 2; provided, however, that nothing in this Section 2 shall be deemed to preclude discussion by any stockholder of any business properly brought before the annual meeting in accordance with the procedures set forth in this Section 2.

    The Chairman of the meeting shall, if the facts warrant, determine and declare to the meeting that the business sought to be so conducted was not properly brought before the meeting in accordance with the provisions of this Section 2, and if he should so determine, he shall so declare to the meeting and any such business not properly brought before the meeting shall not be transacted.

    Section 3.    Special Meetings of Stockholders. Special meetings of the stockholders may be called only by the Chief Executive Officer or by the Board of Directors pursuant to a resolution adopted by a majority of the directors constituting the entire Board of Directors.

    Section 4.     Notice of Meetings. Notice of the place, if any, date and time of all meetings of the stockholders shall be given, not less than ten (10) nor more than sixty (60) days before the date of the meeting (unless a different time is specified by law) by or at the direction of the Chief Executive Officer, the Secretary or the officer calling the meeting to every stockholder entitled to vote at the meeting as of the record date for determining the stockholders entitled to notice of the meeting. Notices of special meetings shall also specify the purpose or purposes for which the meeting has been called. Except as otherwise provided herein or permitted by applicable law, notice to stockholders shall be in writing and delivered personally or mailed to the stockholders at their address appearing on the books of the corporation. Without limiting the manner by which notice otherwise may be given effectively to stockholders, notice of meeting may be given to stockholders by means of electronic transmission in accordance with applicable law. Notice of any meeting need not be given to any stockholder who shall, either before or after the meeting, submits a waiver of notice or who shall attend such meeting, except when the stockholder attends for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened.

    Section 5.    Quorum. The holders of a majority of the shares entitled to vote at the meeting, represented in person or by proxy, shall constitute a quorum at meetings of stockholders except as otherwise provided by applicable law or the Certificate of Incorporation.

    Section 6.     Adjournments. The Chairman of the meeting shall have the power to adjourn the meeting from time to time to reconvene at the same or some other place, if any, and notice need not be given of such adjourned meeting if the time and place, if any, thereof are announced at the meeting at which the adjournment is taken. At such adjourned meeting, any business may be transacted which might have been transacted at the meeting as originally notified. If the adjournment is for more than thirty (30) days, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting.

    Section 7.    Election of Directors. Each director shall be elected by the vote of the majority of the votes cast with respect to that director’s election at any meeting for the election of directors at which a quorum is present; provided, if the number of persons properly nominated to serve as directors exceeds the number of directors to be elected, then each director of the

3

corporation shall be elected by the vote of a plurality of the shares present in person or by proxy at the meeting and entitled to vote on the election of directors. For purposes of this Section 7, a majority of votes cast shall mean that the number of shares voted “for” a director’s election exceeds 50% of the number of votes cast with respect to the director’s election; votes cast shall include votes to withhold authority and exclude abstentions with respect to the director’s election.

    If a nominee for director is not elected and the nominee is an incumbent director, the director shall promptly tender his or her resignation to the Board of Directors, subject to acceptance by the Board of Directors. The Corporate Governance and Directors Nominating Committee will make a recommendation to the Board of Directors as to whether to accept or reject the tendered resignation, or whether other action should be taken. The Board of Directors will act on the tendered resignation, taking into account the Corporate Governance and Directors Nominating Committee’s recommendation, and publicly disclose (by a press release, a filing with the Securities and Exchange Commission or other broadly disseminated means of communication) its decision regarding the tendered resignation and the rationale behind the decision within 90 days from the date of certification of the election results. The Corporate Governance and Directors Nominating Committee in making its recommendation and the Board of Directors in making its decision may each consider any factors or other information that they consider appropriate and relevant. The director who tenders his or her resignation will not participate in the recommendation of the Corporate Governance and Directors Nominating Committee or the decision of the Board of Directors with respect to his or her resignation.

    If a director’s resignation is accepted by the Board of Directors pursuant to this Bylaw, or if a nominee for director is not elected and the nominee is not an incumbent director, then the Board of Directors may fill the resulting vacancy pursuant to the provisions of Section 2 of Article III of these Bylaws or may decrease the size of the Board of Directors.

    Section 8.    Voting. Except as provided in Section 7 of this Article with respect to the election of the Board of Directors, at a meeting at which a quorum is present, the vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote shall be the act of the stockholders' meeting, unless the vote of a greater number is required by law or the Certificate of Incorporation. Each outstanding share, regardless of class, shall be entitled to one vote on each matter submitted to a vote at a meeting of stockholders, except to the extent that the voting rights of the shares of any class are limited or denied by the Certificate of Incorporation.

    Section 9.    Proxies. At any meeting of the stockholders, every stockholder having the right to vote may vote either in person, or by proxy appointed by an instrument in writing as to a particular meeting and any adjournment or adjournments thereof subscribed by such stockholder or by his or her duly authorized attorney-in-fact. A proxy shall be revocable unless expressly provided therein to be irrevocable and unless otherwise provided by law.

    Section 10. Stockholder List. The officer or agent having charge of the stock transfer books shall make, at least ten (10) days before each meeting of stockholders, a complete list of the stockholders entitled to vote at such meeting or any adjournment thereof, arranged in alphabetical order, with the address of and number of shares held by each, which list, for a period of ten (10) days prior to such meeting, shall be kept on file at the principal place of business of the corporation, and shall be subject to inspection by any stockholder at any time during usual business hours. Such list shall also be produced and kept open at the time and place of the meeting, and shall be subject to the inspection of any stockholder during the whole time of the meeting. The original stock transfer books shall be prima facie evidence as to who are the stockholders entitled to examine such list or transfer book or to vote at any such meeting of stockholders.

4

    Section 11.    Rules of Conduct. The Board of Directors may adopt by resolution such rules and regulations for the conduct of the meeting of the stockholders as it shall deem appropriate. The Chairman of the Board of Directors shall act as Chairman of the meeting and shall preside at all meetings of the stockholders. In the absence of the Chairman of the Board of Directors, the Board of Directors shall designate a person to serve as Chairman of the meeting. Except to the extent inconsistent with these Bylaws or such rules and regulations as adopted by the Board of Directors, the Chairman of the meeting shall have the right and authority to prescribe such rules, regulations and procedures and to do all acts as, in the judgment of such Chairman, are appropriate for the proper conduct of the meeting.

ARTICLE III.

Directors

    Section 1.    Number of Directors. The number of directors of the corporation shall be nine (9). The directors shall be elected at the annual meeting of the stockholders, except as provided in Section 2 of this Article, and each director elected shall hold office until his or her successor is elected and qualified or until the director’s earlier death, resignation, disqualification or removal; provided, that any director may be removed at any time, with or without cause, by the holders of a majority of the shares of capital stock entitled to vote, represented in person or by proxy, at any duly constituted meeting of stockholders called for the purpose of removing any such director or directors. Directors need not be residents of the State of Delaware or stockholders of the corporation.

    Section 2.     Vacancies. Any vacancy occurring in the Board of Directors may be filled by the vote of a majority of the directors then in office though less than a quorum of the Board of Directors. A director elected to fill a vacancy shall be elected for the unexpired term of his or her predecessor in office. Any newly created directorship(s) resulting from an increase in the authorized number of directors elected by all stockholders entitled to vote as a single class shall be filled by the vote of a majority of the directors then in office, though less than a quorum.

    Section 3.    Resignations. A director may resign at any time by notice given in writing or by electronic transmission to the corporation. Such resignation shall take effect at the date of receipt of such notice by the corporation or at such later time as is therein specified.

    Section 4.    Duties of Board of Directors. The business and affairs of the corporation shall be managed by its Board of Directors which may exercise all such powers of the corporation and do all such lawful acts and things as are not by statute, the Certificate of Incorporation, or these Bylaws directed or required to be exercised and done by the stockholders.

    Section 5.     Locations of Meetings. Meetings of the Board of Directors, regular or special, may be held either within or without the State of Delaware.

    Section 6.    Regular Meetings. Regular meetings of the Board of Directors may be held at such time and at such place as shall from time to time be determined by the Board of Directors or its Chairman. Written notice of regular meetings of the Board of Directors shall not be required.

    Section 7.     Special Meetings. Special meetings of the Board of Directors may be held at such time and at such places as may be determined by Chairman of the Board of Directors or the Presiding Director. Special meetings of the Board of Directors may be called upon twenty-four (24) hours’ notice to each director, or such shorter period of time as the person calling the meeting deems appropriate in the circumstances, either personally or by email, mail or telephone.

5

Neither the business to be transacted at, nor the purposes of, any special meeting of the Board of Directors need be specified in the notice or waiver of notice of such special meeting.

    Section 8.    Quorum. A majority of the total number of Directors then fixed pursuant to Section 1 of Article III of these Bylaws shall constitute a quorum for the transaction of business, and the act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the Board of Directors, unless a greater number is required by applicable law or the Certificate of Incorporation. If a quorum shall not be present at any meeting of the Board of Directors, the directors present thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall be present.

    Section 9.    Committees. The Board of Directors may from time to time designate committees of the Board of Directors, with such lawfully delegable powers and duties as it thereby confers, to serve at the pleasure of the Board of Directors and shall, for those committees and any others provided for herein, elect a director or directors to serve as the member or members, designating, if it desires, other directors as alternate members who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of any members of any committee and any alternate member in his or her place, the member or members of the committee present at the meeting and not disqualified from voting, whether or not he or she or they constitute a quorum, may by unanimous vote appoint another member of the Board of Directors to act at the meeting in the place of the absent or disqualified member.

    Section 10.    Committee Meetings. Each committee may determine the procedural rules for meeting and conducting its business and shall act in accordance therewith, except as otherwise provided herein or required by law. Adequate provision shall be made for notice to members of all meetings. At least one-half of the members shall constitute a quorum, unless a greater percentage is specified in the committee’s charter. All matters shall be determined by a majority vote of the members present. Action to be taken by any committee without a meeting if all members thereof consent thereto in writing or by electronic transmission, and the writing or writings or electronic transmission or transmissions are filed with the minutes of the proceedings of such committee. Such filing shall be in proper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form.

ARTICLE IV.

Notices

    Section 1.    Notices. If mailed, notices to directors and stockholders shall be in writing and delivered personally or mailed to the directors or stockholders at their addresses appearing on the books of the corporation and such notice shall be deemed to be given when deposited in the United States mail with postage thereon prepaid. Without limiting the manner by which notice otherwise may be given effectively to stockholders, any notice to stockholders may be given by electronic transmission in the manner provided in Section 232 of the Delaware General Corporation Law or any successor provision thereto.

    Section 2.    Waivers. Whenever any notice is required to be given to any stockholder or director under the provisions of the statutes, the Certificate of Incorporation or these Bylaws, a waiver thereof in writing, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be equivalent to the giving of such notice.

    Section 3.    Attendance. Attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the express purpose of

6

objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened.

ARTICLE V.

Officers

    Section 1.    Positions. Except as other provided in these Bylaws, all references to officers shall apply to both elected officers and appointed officers. The elected officers of the corporation shall consist of a Chief Executive Officer, President, Chief Financial Officer, a Secretary and a Treasurer and, in addition, one or more Senior Vice Presidents or Vice Presidents, as determined by the Board of Directors. One individual person may hold multiple offices.

    Section 2.     Appointment. The elected officers, and any other officers which the Board of Directors consider should be elected, shall be appointed or elected by the Board of Directors at its first meeting after each annual meeting of stockholders or at such other time and place determined by the Board and at such other times as determined by the Board of Directors to fill vacancies in elected offices. Such other officers and assistant officers and agents that are not otherwise elected by the Board of Directors may be appointed by the Chief Executive Officer of the corporation, including, with respect to each Business Group, a Chairman, a President, and one or more Vice Presidents.

    Section 3.    Resignation; Removal. The elected and appointed officers of the corporation shall hold office until their respective successors shall have been appointed or elected pursuant to these Bylaws and shall have qualified or until their earlier death, resignation, disqualification or removal. Any elected officer may be removed from office by a majority vote of the total number of Directors then fixed pursuant to Section 1 of Article III of these Bylaws with or without cause at any time, but such removal shall be without prejudice to the contract rights, if any, of the person so removed. Any appointed officer may be removed by the Chief Executive Officer with or without cause at any time, but such removal shall be without prejudice to the contract rights, if any, of the person so removed.

    Section 4.     Chairman. The Chairman of the Board of Directors, if one is elected by the Board of Directors, shall have the powers and duties as shall be prescribed by the Board of Directors. The Chairman of the Board shall preside at all meetings of the stockholders and the Board of Directors, and shall have such other powers and duties as usually pertain to such office or as may be delegated by the Board of Directors.

    Section 5.    Chief Executive Officer. Unless the Board of Directors shall otherwise delegate such duties, the Chief Executive Officer shall have general supervision, management, direction and control of the business of the corporation, including those listed in Section 2 and Section 3 of this Article, and shall see that all orders and resolutions of the Board of Directors are carried into effect. The Chief Executive Officer or his or her designee shall have the authority to execute bonds, leases, mortgages, promissory notes and other contracts requiring a seal, under the seal of the corporation, except where required or permitted by law to be otherwise signed and executed, and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the corporation. The Chief Executive Officer shall have the general powers and duties of management usually vested in the office of chief executive officer of a corporation and shall perform such other duties and possess such other authority and powers as the Board of Directors may from time to time prescribe.

    Section 6.    Chief Financial Officer. The Chief Financial Officer shall have general financial supervision, management, direction and control of the business and affairs of the

7

corporation and shall see that all financial orders and resolutions of the Board of Directors are carried into effect. The Chief Financial Officer shall be authorized to execute promissory notes, bonds, mortgages, leases and other contracts requiring a seal, under the seal of the corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the corporation. The Chief Financial Officer shall have the general financial powers and duties of management usually vested in the office of chief financial officer of a corporation and shall perform such other duties and possess such other authority and powers as the Board of Directors, Chief Executive Officer or Chairman of the Board may from time to time prescribe.

    Section 7.    President. The President shall have the general powers and duties of management usually vested in the office of president (in circumstances where such corporation also maintains the office of chief executive officer) or chief operating officer of a corporation (including the general supervision of the day-to-day operations of the corporation) and shall perform such other duties and possess such other authority and powers as the Board of Directors, Chief Executive Officer or Chairman of the Board may from time to time prescribe.

    Section 8. Vice Presidents. Each Vice President shall have such powers and duties as may be assigned to him by the Board of Directors, the Chairman of the Board of Directors, the Chief Executive Officer, the Chief Financial Officer and the President. Each Vice President, in the order of their seniority, unless otherwise determined by the Board of Directors, shall, in the absence or disability of the Chief Executive Officer or the President, perform the duties and exercise the powers of the Chief Executive Officer or the President during that officer’s absence or inability to act. The Vice Presidents shall also have the authority to execute promissory notes, bonds, mortgages, leases and other contracts requiring a seal, under the seal of the corporation, except where required or permitted by law to be otherwise signed and executed, and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the corporation. Each Vice President shall also perform such other duties and have such other powers as the Board of Directors, Chief Executive Officer or President of the corporation shall prescribe.

    Section 9.    Secretary. The Secretary shall attend all meetings of the Board of Directors and all meetings of the stockholders and shall record all the proceedings of the meetings of the stockholders and of the Board of Directors in a book to be kept for that purpose and shall perform like duties for the standing committees, when requested. The Secretary shall give, or cause to be given, notice of all meetings of the stockholders and special meetings of the Board of Directors. The Secretary shall keep in safe custody the seal of the corporation, and, when authorized by the Board of Directors or directed by the President or any Vice President, affix the same to any instrument requiring it and, when so affixed, it shall be attested by his or her signature or by the signature of the Treasurer or any Assistant Secretary. The Secretary shall also perform such other duties and have such other powers as the Board of Directors, Chief Executive Officer or President of the corporation shall prescribe.

    Section 10.    Assistant Secretaries. The Assistant Secretaries, in the order of their seniority, unless otherwise determined by the Board of Directors, shall, in the absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary. The Assistant Secretaries shall also perform such other duties and have such other powers as the Board of Directors, Chief Executive Officer or President of the corporation shall prescribe.

    Section 11.    Treasurer. The Treasurer shall have the custody of the corporate funds and securities and shall deposit all monies and other valuable effects in the name and to the credit of the corporation in such depositaries as may be designated from time to time by the Board of Directors. The Treasurer shall disburse the funds of the corporation as may be ordered by the

8

Board of Directors or Chief Financial Officer, taking proper vouchers for such disbursements, and shall render to the Chief Financial Officer and the Board of Directors at its regular meetings, or when the Board of Directors so requires, an account of all his or her transactions as Treasurer. If required by the Board of Directors, the Treasurer shall give the corporation a bond in such sum and with such surety or sureties as shall be satisfactory to the Board of Directors for the faithful performance of the duties of his or her office and for the restoration to the corporation, in case of his or her death, resignation, retirement or removal from office, of all books, papers, vouchers, money and other property of whatever kind in his or her possession or under his or her control belonging to the corporation. The Treasurer shall also perform such other duties and have such other powers as the Board of Directors, Chief Executive Officer, Chief Financial Officer or President of the corporation shall prescribe.

    Section 12. Assistant Treasurers. Each Assistant Treasurer, in the order of their seniority, unless otherwise determined by the Board of Directors, shall, in the absence or disability of the Treasurer, perform the duties and exercise the powers of the Treasurer. Each Assistant Treasurer shall also perform such other duties and have such other powers as the Board of Directors, Chief Executive Officer, Chief Financial Officer or President of the corporation shall prescribe.

    Section 13. Other Officers. Such other officers and assistant officers and agents as may be deemed necessary may be appointed by the Chief Executive Officer of the corporation, including a Chairman, a President, and one or more Vice Presidents of the respective Business Groups. The President or the Vice Presidents of the Business Group who, in the order of their seniority, unless otherwise determined by the Chief Executive Officer of the corporation, shall perform the duties of the Chairman or President, as the case may be, of the Business Group in the absence or disability of the Chairman or President, as the case may be, of that Business Group. Each President or Vice President, as the case may be, of a Business Group shall perform such other duties and have such other powers as the Chief Executive Officer of the corporation or the Chairman or President, as the case may be, of that Business Group shall prescribe. Business Group officers shall hold office until their respective successors shall have been chosen and shall have qualified or until their earlier death, resignation, disqualification or removal. Any Business Group officer appointed by the Chief Executive Officer may be removed by the Chief Executive Officer with or without cause at any time. Any vacancy occurring in any office of a Business Group by death, resignation, removal or otherwise shall be filled by the Chief Executive Officer of the corporation.

ARTICLE VI.

Indemnification of Directors and Officers

    Section 1.    Right to Indemnification. Each person who was or is made a party or is threatened to be made a party to or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter a “proceeding”), by reason of the fact that he or she is or was or has agreed to become a director or an officer of the corporation or is or was serving or has agreed to serve at the request of the corporation as a director, officer, or trustee of another corporation or of a partnership, joint venture, trust or other enterprise, including service with respect to an employee benefit plan (hereinafter, an “indemnitee”), whether the basis of such proceeding is alleged action in an official capacity as a director, officer or trustee or in any other capacity while serving as a director, officer or trustee, shall be indemnified and held harmless by the corporation to the fullest extent permitted by Delaware law, as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the corporation to provide broader indemnification rights than such law permitted the corporation to provide prior to such amendment), against all expense, liability and loss (including attorneys’ fees, judgments, fines,

9

ERISA excise taxes or penalties and amounts paid in settlement) reasonably incurred or suffered by such indemnitee in connection therewith; provided, however, that, except as provided in Section 3 of this Article VI with respect to proceedings to enforce rights to indemnification, the corporation shall indemnify any such indemnitee in connection with a proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof) was authorized by the Board of Directors of the corporation.

    Section 2.    Right to Advancement of Expenses. In addition to the right to indemnification conferred in Section 1 of this Article VI, an indemnitee shall also have the right to be paid by the corporation the expenses (including attorney’s fees) incurred in defending any such proceeding in advance of its final disposition (hereinafter an “advancement of expenses”); provided, however, that, if the Delaware General Corporation Law requires, an advancement of expenses incurred by an indemnitee in his or her capacity as a director or officer (and not in any other capacity in which service was or is rendered by such indemnitee, including, without limitation, service to an employee benefit plan) shall be made only upon delivery to the corporation of an undertaking (hereinafter an “undertaking”), by or on behalf of such indemnitee, to repay all amounts so advanced if it shall ultimately be determined by final judicial decision from which there is no further right to appeal (hereinafter a “final adjudication”) that such indemnitee is not entitled to be indemnified for such expenses under this Section 2 or otherwise. The Board of Directors, may, in the manner set forth herein, and upon approval of such indemnitee, authorize the corporation’s counsel to represent such indemnitee in any action, suit or proceeding, whether or not the corporation is a party to such action, suit or proceeding.

    Section 3.    Right of Indemnitee to Bring Suit. If a claim under Section 1 or 2 of this Article VI is not paid in full by the corporation within sixty (60) days after a written claim has been received by the corporation, except in the case of a claim for an advancement of expenses, in which case the applicable period shall be twenty (20) businessdays, the indemnitee may at any time thereafter bring suit against the corporation to recover the unpaid amount of the claim. To the fullest extent permitted by law, if successful in whole or in part in any such suit (including, without limitation, if the suit is dismissed without prejudice), or in a suit brought by the corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the indemnitee shall be entitled to be paid also the expense of prosecuting or defending such suit. In (i) any suit brought by the indemnitee to enforce a right to indemnification hereunder (but not in a suit brought by the indemnitee to enforce a right to an advancement of expenses) it shall be a defense that, and (ii) in any suit brought by the corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the corporation shall be entitled to recover such expenses upon a final adjudication that, the indemnitee has not met any applicable standard for indemnification set forth in the Delaware General Corporation Law. Neither the failure of the corporation (including its directors who are not parties to such action, a committee of such directors, independent legal counsel, or its stockholders) to have made a determination prior to the commencement of such suit that indemnification of the indemnitee is proper in the circumstances because the indemnitee has met the applicable standard of conduct set forth in the Delaware General Corporation Law, nor an actual determination by the corporation (including its directors who are not parties to such action, a committee of such directors, independent legal counsel, or its stockholders) that the indemnitee has not met such applicable standard of conduct, shall create a presumption that the indemnitee has not met the applicable standard of conduct or, in the case of such a suit brought by the indemnitee, be a defense to such suit. In any suit brought by the indemnitee to enforce a right to indemnification or to an advancement of expenses hereunder, or brought by the corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the indemnitee is not entitled to be indemnified, or to such advancement of expenses, under this Article VI or otherwise shall be on the corporation.

10

    Section 4.    Determination Regarding Standard of Conduct. Any indemnification under this Article VI (unless ordered by a court) shall be paid by the corporation unless a determination is made (1) by the Board of Directors by a majority vote of the directors who were not parties to such action, suit or proceeding, even though less than a quorum, (2) if there are no such directors, or if such directors so direct, by independent legal counsel in a written opinion or (3) by the stockholders, that indemnification is not proper in the circumstances because the indemnitee has not met the requisite standard of conduct under applicable law.

    Section 5.    Non-Exclusivity of Rights. The rights to indemnification and to the advancement of expenses conferred in this Article VI shall not be exclusive of any other right which any person may have or hereafter acquire under any statute, the corporation’s Certificate of Incorporation, Bylaws, agreement, vote of stockholders or directors or otherwise.

    Section 6.    Insurance. The corporation may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the corporation or another corporation, partnership, limited liability company, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the corporation would have the power to indemnify such person against such expense, liability or loss under the Delaware General Corporation Law.

    Section 7.    Nature of Rights. The rights conferred upon indemnitees in this Article VI shall be contract rights and such rights shall continue as to an indemnitee who has ceased to be a director, officer or trustee and shall inure to the benefit of the indemnitee’s heirs, executors and administrators. Any amendment, alteration or repeal of this Article VI that adversely affects any right of an indemnitee or its successors shall be prospective only and shall not limit, eliminate, or impair any such right with respect to any proceeding involving any occurrence or alleged occurrence of any action or omission to act that took place prior to such amendment or repeal.

    Section 8.    Severability. If this Article VI or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the corporation shall nevertheless indemnify each director and officer of the corporation as to costs, charges and expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement with respect to any action suit or proceeding, whether civil, criminal, administrative or investigative, including an action by or in the right of the corporation, to the full extent permitted by any applicable portion of this Article VI that shall not have been invalidated and to the full extent permitted by applicable law.

ARTICLE VII.

Certificates for Shares; Record Dates; Written Consent

    Section 1.    Certificates for Shares. Shares of stock of the corporation may be certificated or uncertificated as provided under Delaware General Corporation Law. The corporation shall deliver, upon request, certificates representing all shares to which stockholders are entitled; and such certificates shall be signed by the President or a Vice President, and the Secretary or an Assistant Secretary of the corporation, and may be sealed with the seal of the corporation or a facsimile thereof. No certificate shall be issued for any share until the consideration therefor has been fully paid. Each certificate representing shares shall state upon the face thereof that the corporation is organized under the laws of the State of Delaware, the name of the person to whom issued, the number and class and the designation of the series, if any, which such certificate represents, and the par value of each share represented by such certificate or a statement that the shares are without par value. Except as otherwise provided by law, the rights and obligations of holders of uncertificated shares and the rights and obligations of holders of certificated shares of the same class and series shall be identical.

11

    Section 2.    Signatures. The signatures of the President or Vice President, and the Secretary or Assistant Secretary, upon a certificate may be facsimiles if the certificate is countersigned by a transfer agent, or registered by a registrar, other than the corporation or an employee of the corporation. In case any officer who has signed or whose facsimile signature has been placed upon such certificate shall have ceased to be such officer before such certificate is issued, it may be issued by the corporation with the same effect as if he were such officer at the date of the issuance.

    Section 3.    Replacement of Lost Certificates. The Board of Directors may direct a new certificate or certificates to be issued or may register uncertificated shares in place of any certificate or certificates theretofore issued by the corporation alleged to have been lost or destroyed, upon the making of an affidavit of that fact by the person claiming the certificate of stock to be lost or destroyed. When authorizing such issue of a new certificate or certificates or the registration of uncertificated shares, the Board of Directors may, in its discretion and as a condition precedent to the issuance or registration thereof, require the owner of such lost or destroyed certificate or certificates, or his or her legal representative, to advertise the same in such manner as it shall require and/or to give the corporation a bond in such sum as it may direct as indemnity against any claim that may be made against the corporation with respect to the certificate alleged to have been lost or destroyed.

    Section 4.    Transfer of Certificates. Upon surrender to the corporation or the transfer agent of the corporation of a certificate for shares duly endorsed or accompanied by proper evidence of succession, assignment or authority to transfer, it shall be the duty of the corporation to issue a new certificate or register uncertificated shares to the person entitled thereto, cancel the old certificate, and record the transaction upon its books. Upon the receipt of proper transfer instructions of uncertificated shares by the holders thereof in person or by their duly authorized legal representatives, such uncertificated shares shall be cancelled, issuance of new equivalent certificated shares or registration of uncertificated shares shall be made to the stockholder entitled thereto and the transaction shall be recorded on the books of the corporation.

    Section 5.    Record Dates; Written Consent.

    (a) Meetings. For the purpose of determining stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board of Directors, and which record date shall not be more than sixty (60) nor less than ten (10) days before the date of such meeting. If the Board of Directors so fixes a date, such date shall also be the record date for determining the stockholders entitled to vote at such meeting. If no record date is fixed by the Board of Directors for the determination of stockholders entitled to notice of or to vote at a meeting of stockholders or any adjournment thereof, the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be the close of business on the day next preceding the day on which notice of the meeting of stockholders is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the Board of Directors may fix a new record date for the determination of stockholders entitled to vote at the adjourned meeting and in such case shall also fix the record date for stockholders entitled to notice of such adjourned meeting the same or an earlier date that is fixed for the determination of stockholders entitled to vote therewith at the adjourned meeting.

    (b) Written Consent.

12

(i)In order that the corporation may determine the stockholders entitled to consent to corporate action in writing without a meeting, the Board of Directors may fix a record date, which record date shall not precede the date on which the resolution fixing the record date is adopted by the Board of Directors, and which record date shall not be more than ten (10) days after the date upon which the resolution fixing the record date is adopted by the Board of Directors. Any stockholder of record seeking to have the stockholders authorize or take corporate action by written consent shall, by written notice to the Secretary, request the Board of Directors to fix a record date and in connection therewith, shall provide the information set forth in Section 5(b)(ii) of Article VII. The Board of Directors shall promptly, but in all events within ten (10) days after the date on which such a request is received, adopt a resolution fixing the record date. If no record date has been fixed by the Board of Directors within ten (10) days of the date upon which such a request is received, the record date for determining stockholders entitled to consent to corporate action in writing without a meeting, when no prior action by the Board of Directors is required by applicable law, shall be the first date on which a signed written consent setting forth the action taken or proposed to be taken is delivered to the corporation by delivery to its registered office in the State of Delaware, its principal place of business, or any officer or agent of the corporation having custody of the book in which proceedings of stockholders’ meeting are recorded, to the attention of the Secretary of the corporation. Delivery shall be by hand or by certified or registered mail, return receipt requested. If no record date has been fixed by the Board of Directors and prior action by the Board of Directors is required by applicable law, the record date for determining stockholders entitled to consent to corporate action in writing without a meeting shall be at the close of business on the date on which the Board of Directors adopts the resolution taking such prior action.

(ii)To be in proper form for purposes of this Section 5, a request by a stockholder for the Board of Directors to fix a record date shall set forth:

(a)As to any stockholder of record seeking to have the stockholders authorize or take corporate action by written consent, the information set forth in Section 2(b)(i), Section 2(b)(ii), Section 2(b)(iii)(with respect to any written consent for the election or re-election of a director nominee) and Section 2(b)(v) of Article II with respect to such stockholder; and

(b)As to the action or actions proposed to be taken by written consent, (1) a brief description of the action or actions, the reason for taking such action or actions and any material interest in such action or actions of any stockholder of record seeking to have the stockholders authorize or take corporate action by written consent, (2) the text of the resolutions or consent proposed to be acted upon by written consent of the stockholders, (3) a reasonably detailed description of all agreements, arrangements and understandings between any stockholder and any other person or persons (including their name) in connection with the request or such action or actions and (4) if election of directors is one of the actions proposed to be taken by written consent, as to each person whom any stockholder proposed to be elected or re-elected as a director, the information regarding the nominee as set forth in, or required from the nominee by, Section 2 of Article II.

(c)In addition to the requirements of this Section 5, any stockholder seeking to take an action by written consent shall comply with all

13

requirements of applicable law, including all of the requirements of the Securities Exchange Act of 1934, as amended, with respect to such action.

    (c) Dividends; Distributions. In order that the corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the Board of Directors may fix a record date, which record date shall not precede the date on which the resolution fixing the record date is adopted by the Board of Directors, and which record date shall not be more than sixty (60) days prior to such action. If no record date has been fixed by the Board of Directors, the record date for determining stockholders for any such purpose shall be the close of business on the day on which the Board of Directors adopts the resolution relating thereto.

    Section 6.    Stockholder of Record. The corporation shall be entitled to recognize the exclusive rights of a person registered on its books as the owner of shares to receive dividends, and to vote as such owner, and shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of the State of Delaware.

ARTICLE VIII.

General Provisions

    Section 1.    Dividends. The Board of Directors may declare and the corporation may pay dividends on its outstanding shares in cash, property, or its own shares pursuant to law and subject to the provisions of its Certificate of Incorporation.

    Section 2.    Reserves. Subject to applicable law, the Board of Directors may by resolution create a reserve or reserves out of earned surplus for any purpose or purposes and may abolish any such reserve in the same manner.

    Section 3.    Reports. The Board of Directors must, when requested by the holders of at least one-third of the outstanding shares of the corporation, present written reports of the business and financial affairs of the corporation.

    Section 4.    Signatures. All checks or demands for money and notes of the corporation shall be signed by such officer or officers or such other person or persons as the Board of Directors may from time to time designate as provided in these Bylaws.

    Section 5.    Fiscal Year. The fiscal year of the corporation shall be fixed by resolution of the Board of Directors.

    Section 6.    Corporate Seal. The corporate seal shall have inscribed thereon the name of the corporation and may be used by causing it or a facsimile thereof to be impressed or affixed or in any other manner reproduced.

    Section 7.    Conflicts. These Bylaws are adopted subject to any applicable law and the Certificate of Incorporation. Whenever these Bylaws may conflict with applicable law or the Certificate of Incorporation, such conflict shall be resolved in favor of such law or the Certificate of Incorporation.

14

    Section 8.     Exclusive Forum. Unless the corporation consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware (the “Court of Chancery”) shall be the sole and exclusive forum for any stockholder (including a beneficial owner) to bring (i) any derivative action or proceeding brought on behalf of the corporation, (ii) any action asserting a claim of breach of fiduciary duty owed by any director or officer or other employee of the corporation to the corporation or the corporation’s stockholders, (iii) any action asserting a claim against the corporation, its directors, officers or employees arising pursuant to any provision of the General Corporation Law of the State of Delaware or the corporation’s Certificate of Incorporation or these Bylaws (as either may be amended from time to time), or (iv) any action asserting a claim against the corporation, its directors, officers or employees governed by the internal affairs doctrine, except as to each of (i) through (iv) above, for any claim as to which the Court of Chancery determines that there is an indispensable party not subject to the jurisdiction of the Court of Chancery (and the indispensable party does not consent to the personal jurisdiction of the Court of Chancery within ten days following such determination), which is vested in the exclusive jurisdiction of a court or forum other than the Court of Chancery or for which the Court of Chancery does not have subject matter jurisdiction. If any provision or provisions of this Section 8 of Article VIII shall be held to be invalid, illegal or unenforceable as applied to any person or entity or circumstance for any reason whatsoever, then, to the fullest extent permitted by law, the validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of this Section 8 of Article VIII (including, without limitation, each portion of any sentence of this Section 8 of Article VIII containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) and the application of such provision to other persons or entities and circumstances shall not in any way be affected or impaired thereby

ARTICLE IX.

Amendments

    These Bylaws may be altered, amended or repealed at any regular or special meeting of, or by the unanimous written consent of, the Board of Directors.

15

EX-22.1

Exhibit 22.1

List of Guarantor Subsidiaries

As of September 30, 2022, the following subsidiaries of Trinity Industries, Inc. (the “Parent”) are guarantors of the Parent’s 4.55% senior notes due 2024:

Trinity Industries Leasing Company

Trinity North American Freight Car, Inc.

Trinity Rail Group, LLC

Trinity Tank Car, Inc.

TrinityRail Maintenance Services, Inc.

EX-31.1

Exhibit 31.1

CERTIFICATION

I, E. Jean Savage, certify that:

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 registrant’s 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 registrant’s disclosure controls and procedures and presented in this report our conclusions 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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting.

Date: October 25, 2022

/s/ E. Jean Savage

E. Jean Savage

Chief Executive Officer and President

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Eric R. Marchetto, certify that:

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 registrant’s 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 registrant’s disclosure controls and procedures and presented in this report our conclusions 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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting.

Date: October 25, 2022

/s/ Eric R. Marchetto

Eric R. Marchetto

Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Trinity Industries, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, E. Jean Savage, Chief Executive Officer and President of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(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.

/s/ E. Jean Savage

E. Jean Savage

Chief Executive Officer and President

October 25, 2022

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Trinity Industries, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Eric R. Marchetto, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(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.

/s/ Eric R. Marchetto

Eric R. Marchetto

Executive Vice President and Chief Financial Officer

October 25, 2022

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 18, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	1-6903
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-0225040
Entity Address, Address Line One	14221 N. Dallas Parkway, Suite 1100
Entity Address, City or Town	Dallas,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75254-2957
City Area Code	214
Local Phone Number	631-4420
Title of 12(b) Security	Common Stock
Entity Trading Symbol	TRN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		81,403,369
Entity Registrant Name	TRINITY INDUSTRIES INC
Entity Central Index Key	0000099780
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period	Q3
Current Fiscal Year End Date	--12-31

XML

Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues [Abstract]
Revenues	$ 496.6	$ 419.8	$ 1,386.1	$ 1,043.8
Cost of revenues:
Cost of revenues:	395.3	337.4	1,119.4	785.8
Selling, engineering, and administrative expenses:
Selling, engineering, and administrative expenses:	48.0	45.8	137.7	136.7
Gains on dispositions of property:
Lease portfolio sales	34.3	32.9	73.0	45.7
Other	5.1	8.7	19.5	19.5
Gains on dispositions of property:	39.4	41.6	92.5	65.2
Restructuring activities, net	0.0	(0.1)	1.0	(1.1)
Total operating profit	92.7	78.3	220.5	187.6
Other (income) expense:
Interest expense, net	55.0	45.2	148.2	147.5
Loss on extinguishment of debt	0.0	0.0	1.5	11.7
Other Nonoperating Income	(0.6)	(0.7)	(2.7)	1.3
Other (income) expense:	54.4	44.5	147.0	160.5
Income from continuing operations before income taxes	38.3	33.8	73.5	27.1
Current Income Tax Expense (Benefit)	(2.6)	0.5	1.2	5.7
Provision (benefit) for deferred income taxes	11.2	7.8	16.2	3.7
Provision (benefit) for income taxes	8.6	8.3	17.4	9.4
Income from continuing operations	29.7	25.5	56.1	17.7
Income (loss) from discontinued operations, net of provision (benefit) for income taxes of $(1.0), $3.6, $(3.5), and $8.0	(3.4)	10.4	(13.7)	24.3
Loss on sale of discontinued operations, net of benefit for income taxes of $—, $—, $1.4, and $—	0.0	0.0	(5.7)	0.0
Net income	26.3	35.9	36.7	42.0
Net income (loss) attributable to noncontrolling interest	0.5	3.9	7.9	(6.0)
Net income attributable to Trinity Industries, Inc.	$ 25.8	$ 32.0	$ 28.8	$ 48.0
Earnings Per Share [Abstract]
Income (Loss) from Continuing Operations, Per Basic Share	$ 0.36	$ 0.22	$ 0.59	$ 0.23
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share	(0.04)	0.11	(0.24)	0.23
Basic net income attributable to Trinity Industries, Inc.	0.32	0.33	0.35	0.46
Income (Loss) from Continuing Operations, Per Diluted Share	0.35	0.22	0.57	0.22
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share	(0.04)	0.11	(0.23)	0.23
Diluted net income attributable to Trinity Industries, Inc.	$ 0.31	$ 0.33	$ 0.34	$ 0.45
Weighted average number of shares outstanding:
Weighted Average Number of Shares Outstanding, Basic	81.7	97.7	82.3	103.4
Weighted Average Number of Shares Outstanding, Diluted	83.3	99.5	84.4	105.7
Manufacturing
Revenues [Abstract]
Revenues	$ 302.0	$ 234.5	$ 813.5	$ 490.2
Cost of revenues:
Cost of revenues:	288.0	238.8	804.4	488.0
Selling, engineering, and administrative expenses:
Selling, engineering, and administrative expenses:	8.7	8.3	25.4	25.4
Leasing
Revenues [Abstract]
Revenues	194.6	185.3	572.6	553.6
Cost of revenues:
Cost of revenues:	107.3	98.6	315.0	297.8
Selling, engineering, and administrative expenses:
Selling, engineering, and administrative expenses:	14.2	11.6	39.6	36.1
Other
Selling, engineering, and administrative expenses:
Selling, engineering, and administrative expenses:	$ 25.1	$ 25.9	$ 72.7	$ 75.2

XML

Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 26.3	$ 35.9	$ 36.7	$ 42.0
Derivative financial instruments:
Unrealized gains (losses) arising during the period, net of tax benefit (expense) of $(3.0), $0.2, $(8.4), and $(1.5)	10.0	(0.8)	26.8	5.0
Reclassification adjustments for losses included in net income, net of tax benefit (expense) of $(0.1), $0.3, $1.2, and $0.6	0.2	1.8	4.6	2.9
Defined benefit plans:
Amortization of net actuarial losses, net of tax benefit of $—, $—, $—, and $0.1	0.1	0.0	0.2	0.1
Foreign Currency Translation [Abstract]
Reclassification adjustments for losses included in discontinued operations, net of tax benefit of $—, $—, $—, and $—	0.0	0.0	1.3	0.0
Other Comprehensive Income (Loss), Net of Tax, Total	10.3	1.0	32.9	8.0
Comprehensive income	36.6	36.9	69.6	50.0
Less: comprehensive income (loss) attributable to noncontrolling interest	0.8	4.2	7.4	(5.0)
Comprehensive income attributable to Trinity Industries, Inc.	$ 35.8	$ 32.7	$ 62.2	$ 55.0

XML

Consolidated Balance Sheets - USD ($) shares in Millions, $ in Millions	Sep. 30, 2022	Dec. 31, 2021
ASSETS
Cash and cash equivalents	$ 58.5	$ 167.3
Receivables, net of allowance	280.2	227.6
Income tax receivable	11.0	5.4
Inventories:
Raw materials and supplies	481.7	278.4
Work in process	150.0	91.6
Finished goods	54.8	62.9
Inventory, Net	686.5	432.9
Restricted cash, including partially-owned subsidiaries of $63.1 and $58.6	180.2	135.1
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,920.5 and $1,927.7	9,244.8	9,105.6
Less accumulated depreciation, including partially-owned subsidiaries of $591.8 and $568.4	2,351.0	2,258.7
Property, Plant and Equipment, Net	6,893.8	6,846.9
Goodwill	159.5	154.2
Other assets	329.4	266.5
Total assets	8,599.1	8,235.9
Liabilities and Equity [Abstract]
Accounts payable	286.6	206.4
Accrued liabilities	288.9	307.4
Debt:
Recourse	459.0	398.7
Total debt	5,493.7	5,170.6
Deferred income taxes	1,128.5	1,106.8
Other liabilities	140.3	147.9
Total liabilities	$ 7,338.0	$ 6,939.1
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract]
Preferred Stock, Shares Authorized	1.5	1.5
Preferred Stock, Shares Subscribed but Unissued	1.5	1.5
Preferred stock – 1.5 shares authorized and unissued	$ 0.0	$ 0.0
Common Stock, Shares Authorized	400.0	400.0
Common stock – 400.0 shares authorized	$ 0.8	$ 0.8
Capital in excess of par value	6.1	0.0
Retained earnings	997.7	1,046.6
Accumulated other comprehensive income (loss)	16.4	(17.0)
Treasury stock	(15.1)	(0.6)
Total Equity	1,005.9	1,029.8
Noncontrolling interest	255.2	267.0
Total stockholders' equity	1,261.1	1,296.8
Total liabilities and stockholders' equity	8,599.1	8,235.9
Nonrecourse
Debt:
Debt, Long-Term and Short-Term, Combined Amount	5,034.7	4,771.9
Wholly-owned subsidiaries | Nonrecourse
Debt:
Debt, Long-Term and Short-Term, Combined Amount	3,844.5	3,555.8
Partially-owned subsidiaries
Inventories:
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,920.5 and $1,927.7	1,920.5	1,927.7
Less accumulated depreciation, including partially-owned subsidiaries of $591.8 and $568.4	591.8	568.4
Partially-owned subsidiaries | Nonrecourse
Debt:
Debt, Long-Term and Short-Term, Combined Amount	$ 1,190.2	$ 1,216.1

XML

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Operating activities:
Net income	$ 26.3	$ 1.9	$ 35.9	$ 1.3	$ 36.7	$ 42.0
(Income) loss from discontinued operations, net of income taxes					(13.7)	24.3
Loss on sale of discontinued operations, net of benefit for income taxes of $—, $—, $1.4, and $—	0.0		0.0		5.7	0.0
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract]
Depreciation and amortization					206.0	200.4
Stock-based compensation expense					16.7	15.2
Provision (benefit) for deferred income taxes	11.2		7.8		16.2	3.7
Net gains on lease portfolio sales, excluding sales-type leases					(71.7)	(45.7)
Gains on dispositions of property and other assets					(12.0)	(16.4)
Gains on insurance recoveries from property damage					(7.5)	(4.7)
Non-cash interest expense					10.2	10.3
Loss on extinguishment of debt	0.0		0.0		1.5	11.7
Other					(4.8)	6.9
Changes in operating assets and liabilities:
(Increase) decrease in receivables					(51.9)	(31.5)
(Increase) decrease in income tax receivable					(5.6)	249.8
(Increase) decrease in inventories					(253.6)	(64.2)
(Increase) decrease in other assets					(19.9)	6.7
Increase (decrease) in accounts payable					78.9	43.7
Increase (decrease) in accrued liabilities					(4.6)	14.7
Increase (decrease) in other liabilities					(6.6)	0.5
Net cash provided by (used in) operating activities – continuing operations					(52.6)	418.8
Net cash provided by (used in) operating activities – discontinued operations					(15.4)	8.4
Net cash provided by (used in) operating activities					(68.0)	427.2
Investing activities:
Proceeds from dispositions of property and other assets					33.2	34.3
Lease portfolio sales					514.8	404.5
Capital expenditures – leasing					691.1	363.9
Capital expenditures – manufacturing and other					(25.7)	(16.9)
Acquisitions, net of cash acquired					(9.4)	(16.5)
Proceeds from insurance recoveries					7.6	6.5
Equity investments					15.5	0.2
Net Cash Provided by (Used in) Investing Activities, Continuing Operations					(186.1)	47.8
Net cash provided by (used in) investing activities					(188.8)	43.6
Financing activities:
Payments to retire debt					(1,351.5)	(2,256.8)
Proceeds from issuance of debt					1,664.5	2,393.7
Shares repurchased					(36.8)	(406.5)
Dividends paid to common shareholders					(58.3)	(68.5)
Purchase of shares to satisfy employee tax on vested stock					(5.6)	(9.2)
Distributions to noncontrolling interest					(19.2)	(6.8)
Net cash provided by (used in) financing activities					193.1	(354.1)
Net increase (decrease) in cash, cash equivalents, and restricted cash					(63.7)	116.7
Cash, cash equivalents, and restricted cash at beginning of period		$ 302.4		$ 228.4	302.4	228.4	$ 228.4
Cash, cash equivalents, and restricted cash at end of period	$ 238.7		$ 345.1		238.7	345.1	$ 302.4
Proceeds from Sale of Discontinued Operations, Net of Cash Divested
Investing activities:
Cash Provided by (Used in) Investing Activities, Discontinued Operations					(2.7)	0.0
Other Investing Activities
Investing activities:
Cash Provided by (Used in) Investing Activities, Discontinued Operations					$ 0.0	$ (4.2)

XML

Consolidated Statement of Stockholders' Equity (unaudited) - USD ($) shares in Millions, $ in Millions		Total	Accelerated Share Repurchase Program	Common Stock	Capital in Excess of Par Value	Capital in Excess of Par Value Accelerated Share Repurchase Program	Retained Earnings	Accumulated other comprehensive income (loss)	Treasury Stock	Treasury Stock Accelerated Share Repurchase Program	Trinity Stockholders’ Equity	Trinity Stockholders’ Equity Accelerated Share Repurchase Program	Noncontrolling Interest
$0.01 Par Value		$ 0.01
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Shares, Issued				(111.2)					(0.1)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2020		$ 2,016.0		$ 1.1	$ 0.0		$ 1,769.4	$ (30.9)	$ (0.8)		$ 1,738.8		$ 277.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		1.3					3.3				3.3		(2.0)
Other comprehensive income		5.4						5.1			5.1		0.3
Cash dividends declared on common stock (1)	[1]	(23.3)					(23.3)				(23.3)
Stock-based compensation expense		5.1			5.1						5.1
Settlement of share-based awards, net		0.2			1.0				$ (0.8)		0.2
Shares repurchased									(1.3)
Treasury Stock, Value, Acquired, Cost Method		36.8							$ 36.8		36.8
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Mar. 31, 2021		$ 1,967.9		1.1	6.1		1,749.4	(25.8)	(38.4)		1,692.4		275.5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Dividends, Per Share, Declared		$ 0.21
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2020		$ 2,016.0		1.1	0.0		1,769.4	(30.9)	(0.8)		1,738.8		277.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		42.0
Other comprehensive income		8.0
Stock-based compensation expense		15.2
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2021		$ 1,596.4		$ 1.0	6.9		1,425.2	(23.9)	$ (78.2)		1,331.0		265.4
$0.01 Par Value		$ 0.01
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Shares, Issued				(111.2)					(1.4)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Mar. 31, 2021		$ 1,967.9		$ 1.1	6.1		1,749.4	(25.8)	$ (38.4)		1,692.4		275.5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		4.8					12.7				12.7		(7.9)
Other comprehensive income		1.6						1.2			1.2		0.4
Cash dividends declared on common stock (1)	[1]	(21.0)					(21.0)				(21.0)
Stock-based compensation expense		4.1			4.1						4.1
Restricted shares, net, (in shares)				(1.1)					(0.3)
Settlement of share-based awards, net		(8.7)			0.4				$ (9.1)		(8.7)
Shares repurchased									(10.5)
Treasury Stock, Value, Acquired, Cost Method		290.8							$ 290.8		290.8
Treasury Stock, Shares, Retired				(12.2)					(12.2)
Retirement of treasury stock		0.0		$ (0.1)	(10.6)		(327.0)		$ (337.7)		0.0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jun. 30, 2021		$ 1,657.9		$ 1.0	0.0		1,414.1	(24.6)	$ (0.6)		1,389.9		268.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Dividends, Per Share, Declared		$ 0.21
$0.01 Par Value		$ 0.01
Common Stock, Shares, Issued				(100.1)					0.0
Net income		$ 35.9					32.0				32.0		3.9
Other comprehensive income		1.0						0.7			0.7		0.3
Cash dividends declared on common stock (1)	[1]	(20.9)					(20.9)				(20.9)
Distributions to noncontrolling interest		(6.8)											(6.8)
Stock-based compensation expense		6.0			6.0						6.0
Restricted shares, net, (in shares)				(0.1)					(0.1)
Settlement of share-based awards, net		0.4			0.9				$ (0.5)		0.4
Shares repurchased									(2.8)
Treasury Stock, Value, Acquired, Cost Method		77.1							$ 77.1		77.1
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2021		$ 1,596.4		$ 1.0	6.9		1,425.2	(23.9)	$ (78.2)		1,331.0		265.4
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Dividends, Per Share, Declared		$ 0.21
$0.01 Par Value		$ 0.01
Common Stock, Shares, Issued				(100.2)					(2.9)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Dec. 31, 2021		$ 1,296.8		$ 0.8	0.0		1,046.6	(17.0)	$ (0.6)		1,029.8		267.0
$0.01 Par Value		$ 0.01
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Shares, Issued				(83.3)					0.0
Net income		$ 1.9					(0.7)				(0.7)		2.6
Other comprehensive income		17.3						17.1			17.1		0.2
Cash dividends declared on common stock (1)	[2]	(19.3)					(19.3)				(19.3)
Distributions to noncontrolling interest		(6.2)											(6.2)
Stock-based compensation expense		5.1			5.1						5.1
Settlement of share-based awards, net		0.0			0.2				$ (0.2)		0.0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Mar. 31, 2022		$ 1,295.6		$ 0.8	5.3		1,026.6	0.1	(0.8)		1,032.0		263.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Dividends, Per Share, Declared		$ 0.23
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2021		$ 1,296.8		0.8	0.0		1,046.6	(17.0)	(0.6)		1,029.8		267.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		36.7
Other comprehensive income		32.9											(0.5)
Stock-based compensation expense		16.7
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2022		$ 1,261.1		$ 0.8	6.1		997.7	16.4	$ (15.1)		1,005.9		255.2
$0.01 Par Value		$ 0.01
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Shares, Issued				(83.3)					0.0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Mar. 31, 2022		$ 1,295.6		$ 0.8	5.3		1,026.6	0.1	$ (0.8)		1,032.0		263.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		8.5					3.7				3.7		4.8
Other comprehensive income		5.3						6.3			6.3		(1.0)
Cash dividends declared on common stock (1)	[2]	(19.1)					(19.1)				(19.1)
Distributions to noncontrolling interest		(8.8)											(8.8)
Stock-based compensation expense		5.7			5.7						5.7
Restricted shares, net, (in shares)				(0.8)					(0.2)
Settlement of share-based awards, net		(5.7)			0.4				$ (6.1)		(5.7)
Shares repurchased									(1.0)	(0.8)
Treasury Stock, Value, Acquired, Cost Method		25.3	$ 0.0			$ 25.0			$ 25.3	$ 25.0	25.3	$ 0.0
Treasury Stock, Shares, Retired				(2.0)					(2.0)
Retirement of treasury stock		0.0			(36.4)		(20.1)		$ (56.5)		0.0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jun. 30, 2022		$ 1,256.2		$ 0.8	0.0		991.1	6.4	$ (0.7)		997.6		258.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Dividends, Per Share, Declared		$ 0.23
$0.01 Par Value		$ 0.01
Common Stock, Shares, Issued				(82.1)					0.0
Net income		$ 26.3					25.8				25.8		0.5
Other comprehensive income		10.3						10.0			10.0		0.3
Cash dividends declared on common stock (1)	[2]	(19.2)					(19.2)				(19.2)
Distributions to noncontrolling interest		(4.2)											(4.2)
Stock-based compensation expense		5.9			5.9						5.9
Settlement of share-based awards, net		(0.1)			0.2				$ (0.3)		(0.1)
Shares repurchased									(0.6)
Treasury Stock, Value, Acquired, Cost Method		14.1							$ 14.1		14.1
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2022		$ 1,261.1		$ 0.8	$ 6.1		$ 997.7	$ 16.4	$ (15.1)		$ 1,005.9		$ 255.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Dividends, Per Share, Declared		$ 0.23
$0.01 Par Value		$ 0.01
Common Stock, Shares, Issued				(82.1)					(0.6)

[1] $0.21 per common share for all periods presented in 2021.

[2] $0.23 per common share for all periods presented in 2022.

XML

Consolidated Statements of Operations Parenthetical - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Discontinued Operation, Tax Effect of Discontinued Operation	$ (1.0)	$ 3.6	$ (3.5)	$ 8.0
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation	$ 0.0	$ 0.0	$ (1.4)	$ 0.0

XML

Consolidated Statements of Comprehensive Income Parenthetical - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax	$ (3.0)	$ 0.2	$ (8.4)	$ (1.5)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax	0.1	(0.3)	(1.2)	(0.6)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax	0.0	0.0	0.0	(0.1)
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax, Portion Attributable to Parent	$ 0.0	$ 0.0	$ 0.0	$ 0.0

XML

Discontinued Operations and Disposal Groups

9 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

Discontinued Operations

Sale of Highway Products Business

In the fourth quarter of 2021, we completed the sale of our highway products business, THP. The sale closed on December 31, 2021, and we received net proceeds of approximately $364.7 million, after certain adjustments and closing costs. During the nine months ended September 30, 2022, we recorded a loss on sale of discontinued operations of $5.8 million ($4.4 million, net of income taxes), which included a $2.7 million payment to Rush Hour representing a final working capital adjustment, as well as additional transaction costs incurred during the period. There was no loss on sale of discontinued operations during the three months ended September 30, 2022. We concluded that the sale of THP represented a strategic shift that will have a major effect on the Company’s operations and financial results. Accordingly, we have presented the operating results and cash flows of THP as discontinued operations for all periods in this Quarterly Report on Form 10-Q.

In connection with the sale, Trinity and Rush Hour entered into various agreements to effect the transaction and provide a framework for their relationship after the separation, including a purchase and sale agreement, a transition services agreement, and a lease agreement. The transition services have various durations ranging between one and eighteen months. We have determined that the continuing cash flows generated by these agreements do not constitute significant continuing involvement in the operations of THP. The amounts billed for transition services were not material to our results of operations for the three and nine months ended September 30, 2022. Additionally, in connection with the sale of THP, the Company has agreed to indemnify Rush Hour for certain liabilities related to the highway products business, including certain liabilities resulting from or arising out of the ET-Plus® System, a highway guardrail end-terminal system (the “ET Plus”). Consequently, results from discontinued operations below include certain legal expenses that were directly attributable to the highway products business, which were previously reported in continuing operations. Similar expenses related to these retained obligations incurred during the three and nine months ended September 30, 2022, and that may be incurred in the future, will likewise be reported in discontinued operations. See Note 14 for further information regarding obligations retained in connection with the THP sale.

The following is a summary of THP's operating results included in income (loss) from discontinued operations for the three and nine months ended September 30, 2022 and 2021:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Revenues	$	—	$	83.7	$	—	$	230.0
Cost of revenues	—		60.4		—		165.2
Selling, engineering, and administrative expenses	4.4		9.3		17.2		32.5
Income (loss) from discontinued operations before income taxes	(4.4)		14.0		(17.2)		32.3
Provision (benefit) for income taxes	(1.0)		3.2		(3.5)		7.2
Income (loss) from discontinued operations, net of income taxes	$	(3.4)	$	10.8	$	(13.7)	$	25.1

Other discontinued operations

In addition to the THP activities disclosed above, results include certain amounts related to businesses previously disposed, including a $1.3 million of loss on sale of discontinued operations, net of income taxes for the nine months ended September 30, 2022 and losses of $0.4 million and $0.8 million included in income (loss) from discontinued operations, net of income taxes for the three and nine months ended September 30, 2021, respectively.

XML

Derivative Instruments and Fair Value Accounting

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Accounting

Fair Value Measurements

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 for 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 value are listed below.

Level 1 – This level is defined as quoted prices in active markets for identical assets or liabilities. Our cash equivalents and restricted cash are instruments of the U.S. Treasury or highly-rated money market mutual funds. The assets measured as Level 1 in the fair value hierarchy are summarized below:

	Level 1
	September 30, 2022		December 31, 2021
	(in millions)
Assets:
Cash equivalents	$	34.7	$	11.4
Restricted cash	180.2		135.1
Total assets	$	214.9	$	146.5

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. Interest rate hedges are valued at exit prices obtained from each counterparty. Foreign currency hedges are valued at exit prices obtained from each counterparty, which are based on currency spot and forward rates and forward points. The assets and liabilities measured as Level 2 in the fair value hierarchy are summarized below:

	Level 2
	September 30, 2022		December 31, 2021
	(in millions)
Assets:
Interest rate hedge (1)	$	19.6	$	—
Foreign currency hedge (1)	1.1		—
Total assets	$	20.7	$	—
Liabilities:
Interest rate hedge (2)	$	—	$	21.0
Foreign currency hedge (2)	—		0.1
Total liabilities	$	—	$	21.1

(1) Included in other assets in our Consolidated Balance Sheets.

(2) Included in accrued liabilities in our Consolidated Balance Sheets.

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. As of September 30, 2022 and December 31, 2021, we have no assets measured on a recurring basis as Level 3 in the fair value hierarchy.

See Note 1 for more information regarding non-recurring fair value measurements involving Level 3 inputs resulting from acquisition activity. See Note 8 for the estimated fair values of our debt instruments. The fair values of all other financial instruments are estimated to approximate carrying value.

XML

Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

We report our operating results in two reportable segments: (1) the Railcar Leasing and Management Services Group, which owns and operates a fleet of railcars and provides third-party fleet leasing, management, and administrative services; and (2) the Rail Products Group, which manufactures and sells railcars and related parts and components, and provides railcar maintenance and modification services. Following the sale of THP, which was previously reported within All Other, we have combined the results of the prior Corporate and All Other groupings into a single Corporate and other grouping. The remaining activity previously reported in All Other primarily includes legal, environmental, and maintenance costs associated with non-operating facilities. Results of prior periods have been recast to reflect these changes and present results on a comparable basis.

Gains and losses from the sale of property, plant, and equipment are included in the operating profit of each respective segment. Our Chief Operating Decision Maker ("CODM") regularly reviews the operating results of our reportable segments in order to assess performance and allocate resources. Our CODM does not consider restructuring activities when evaluating segment operating results; therefore, restructuring activities are not allocated to segment profit or loss.

Sales and related net profits ("deferred profit") from the Rail Products Group to the Leasing Group are recorded in the Rail Products Group and eliminated in consolidation and are reflected in "Eliminations – Lease Subsidiary" in the tables below. 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 profit of the Leasing Group, resulting in the recognition of depreciation expense based on our original manufacturing cost of the railcars. Lease portfolio sales are included in the Leasing Group, with related gains and losses computed based on the net book value of the original manufacturing cost of the railcars.

The financial information for these segments is shown in the tables below (in millions). We operate principally in North America.

	Three Months Ended September 30, 2022
	Railcar Leasing and Management Services Group		Rail Products Group		Eliminations – Lease Subsidiary		Eliminations – Other		Consolidated Total
External revenue	$	194.6	$	302.0	$	—	$	—	$	496.6
Intersegment revenue	0.2		295.3		(295.3)		(0.2)		—
Total revenues	$	194.8	$	597.3	$	(295.3)	$	(0.2)	$	496.6

	Three Months Ended September 30, 2021
	Railcar Leasing and Management Services Group		Rail Products Group		Eliminations – Lease Subsidiary		Eliminations – Other		Consolidated Total
External revenue	$	185.3	$	234.5	$	—	$	—	$	419.8
Intersegment revenue	0.2		105.4		(105.3)		(0.3)		—
Total revenues	$	185.5	$	339.9	$	(105.3)	$	(0.3)	$	419.8

	Nine Months Ended September 30, 2022
	Railcar Leasing and Management Services Group		Rail Products Group		Eliminations – Lease Subsidiary		Eliminations – Other		Consolidated Total
External revenue	$	572.6	$	813.5	$	—	$	—	$	1,386.1
Intersegment revenue	0.6		605.5		(605.5)		(0.6)		—
Total revenues	$	573.2	$	1,419.0	$	(605.5)	$	(0.6)	$	1,386.1

	Nine Months Ended September 30, 2021
	Railcar Leasing and Management Services Group		Rail Products Group		Eliminations – Lease Subsidiary		Eliminations – Other		Consolidated Total
External revenue	$	553.6	$	490.2	$	—	$	—	$	1,043.8
Intersegment revenue	0.5		372.5		(367.6)		(5.4)		—
Total revenues	$	554.1	$	862.7	$	(367.6)	$	(5.4)	$	1,043.8

The reconciliation of segment operating profit to consolidated net income is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Operating profit:
Railcar Leasing and Management Services Group	$	107.9	$	109.3	$	293.2	$	268.7
Rail Products Group	26.0		(3.1)		40.5		(8.7)
Segment Totals	133.9		106.2		333.7		260.0
Corporate and other	(21.4)		(23.1)		(62.2)		(63.1)
Restructuring activities, net	—		0.1		(1.0)		1.1
Eliminations – Lease Subsidiary	(19.6)		(4.5)		(48.7)		(9.3)
Eliminations – Other	(0.2)		(0.4)		(1.3)		(1.1)
Consolidated operating profit	92.7		78.3		220.5		187.6
Other (income) expense	54.4		44.5		147.0		160.5
Provision (benefit) for income taxes	8.6		8.3		17.4		9.4
Income (loss) from discontinued operations, net of income taxes	(3.4)		10.4		(13.7)		24.3
Loss on sale of discontinued operations, net of income taxes	—		—		(5.7)		—
Net income	$	26.3	$	35.9	$	36.7	$	42.0

XML

Partially-Owned Leasing Subsidiaries

9 Months Ended

Sep. 30, 2022

Noncontrolling Interest [Abstract]

Partially-Owned Leasing Subsidiaries

Partially-Owned Leasing Subsidiaries

Through our wholly-owned subsidiary, Trinity Industries Leasing Company ("TILC"), we formed two subsidiaries, TRIP Holdings and RIV 2013, for the purpose of providing railcar leasing services in North America for institutional investors. Each of TRIP Holdings and RIV 2013 are direct, partially-owned subsidiaries of TILC in which we have a controlling interest. Each is governed by a seven-member board of representatives, two of whom are designated by TILC. TILC is the agent of each of TRIP Holdings and RIV 2013 and, as such, has been delegated the authority, power, and discretion to take certain actions on behalf of the respective companies.

At September 30, 2022, the carrying value of our investment in TRIP Holdings and RIV 2013 totaled $134.5 million. Our weighted average ownership interest in TRIP Holdings and RIV 2013 is 38% while the remaining 62% weighted average interest is owned by third-party, investor-owned funds. The investment in our partially-owned leasing subsidiaries is eliminated in consolidation.

Each of TRIP Holdings and RIV 2013 has wholly-owned subsidiaries that are the owners of railcars acquired from our Rail Products and Leasing Groups. TRIP Holdings has wholly-owned subsidiaries known as Triumph Rail LLC ("Triumph Rail") and Tribute Rail. RIV 2013 has a wholly-owned subsidiary known as TRP 2021 LLC ("TRP-2021"). TILC is the contractual servicer for Triumph Rail, Tribute Rail, and TRP-2021, with the authority to manage and service each entity's owned railcars. Our controlling interest in each of TRIP Holdings and RIV 2013 results from our combined role as both equity member and agent/servicer. The noncontrolling interest included in the accompanying Consolidated Balance Sheets represents the non-Trinity equity interest in these partially-owned subsidiaries.

Trinity has no obligation to guarantee performance under any of our partially-owned subsidiaries' (or their respective subsidiaries') debt agreements, guarantee any railcar residual values, shield any parties from losses or guarantee minimum yields.

The assets of each of Triumph Rail, Tribute Rail, and TRP-2021 may only be used to satisfy the particular subsidiary's liabilities, and the creditors of each of Triumph Rail, Tribute Rail, and TRP-2021 have recourse only to the particular subsidiary's assets. Each of TILC and the third-party equity investors receive distributions from TRIP Holdings and RIV 2013, when available, in proportion to its respective equity interests, and has an interest in the net assets of the partially-owned subsidiaries upon a liquidation event in the same proportion. TILC is paid fees for the services it provides to Triumph Rail, Tribute Rail, and TRP-2021 and has the potential to earn certain incentive fees. There are no remaining equity commitments with respect to TRIP Holdings or RIV 2013.

See Note 8 regarding TRIP Holdings and RIV 2013, including the debt issuance of Tribute Rail and the repayment of TRIP Railcar Co. LLC's ("TRIP Railcar Co.") outstanding term loan agreement.

Investment in Unconsolidated Affiliate

In August 2021, the Company and Wafra, Inc. (“Wafra”), a global alternative investment manager, announced a new railcar investment vehicle (“RIV”) program between Trinity and certain funds managed by Wafra (“Wafra Funds”). As part of this program, a joint venture was formed, Signal Rail Holdings LLC (“Signal Rail”), which was owned 90% by Wafra Funds and 10% by TILC. Signal Rail or its subsidiaries are expected to invest in diversified portfolios of leased railcars originated by TILC targeting up to $1 billion in total acquisitions over an expected three-year investment period. TILC will service all railcars owned by Signal Rail.

In August 2022, TILC and certain of its subsidiaries sold a second portfolio comprised of 2,678 railcars and related leases to Signal Rail for an aggregate sales price of approximately $254.1 million. TILC recognized a gain of approximately $25.1 million on the sale and approximately $2.5 million was recognized as revenue for services performed associated with the delivery of railcars with attached leases during the three and nine months ended September 30, 2022. In connection with the sale, TILC contributed $13.5 million of cash to Signal Rail, resulting in an increase in TILC's weighted average equity ownership in Signal Rail to 12.9%. Signal Rail financed the August 2022 purchase primarily through a term loan. To date, TILC has sold 6,260 railcars to Signal Rail for an aggregate sales price of $579.2 million.

Upon consideration under the variable interest entity (“VIE”) model of ASC 810, Trinity has concluded that Signal Rail meets the definition of a VIE. TILC has variable interests in Signal Rail arising from its 12.9% equity ownership position and its role as a service provider. We determined that Trinity is not the primary beneficiary and therefore does not consolidate this entity as we do not have the power to direct the activities of the entity that most significantly impact its economic performance. We will absorb portions of Signal Rail’s expected losses and/or receive portions of expected residual returns commensurate with our 12.9% equity interest in Signal Rail.

Our investment in Signal Rail is being accounted for under the equity method of accounting. At September 30, 2022, the carrying value of TILC’s equity investment in Signal Rail was $20.6 million, which is included in other assets in our Consolidated Balance Sheets. The carrying value of this investment, together with any potential future investments described above, collectively represent our maximum exposure in Signal Rail.

XML

Railcar Leasing and Management Services Group

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Railcar Leasing and Management Services Group

Railcar Leasing and Management Services Group

The Railcar Leasing and Management Services Group owns and operates a fleet of railcars as well as provides third-party fleet leasing, management, and administrative services. Selected consolidated financial information for the Leasing Group is as follows:

	September 30, 2022
	Wholly- Owned Subsidiaries		Partially-Owned Subsidiaries		Total Leasing Group		Eliminations – Lease Subsidiary(1)		Adjusted Total Leasing Group
	(in millions)
Cash and cash equivalents	$	4.4	$	—	$	4.4	$	—	$	4.4
Accounts receivable	97.3		12.3		109.6		—		109.6
Property, plant, and equipment, net	5,793.1		1,533.5		7,326.6		(774.4)		6,552.2
Restricted cash	117.1		63.1		180.2		—		180.2
Other assets	132.6		1.9		134.5		—		134.5
Total assets	$	6,144.5	$	1,610.8	$	7,755.3	$	(774.4)	$	6,980.9
Accounts payable and accrued liabilities	$	114.9	$	42.9	$	157.8	$	—	$	157.8
Debt, net	3,844.5		1,190.2		5,034.7		—		5,034.7
Deferred income taxes	1,147.0		0.9		1,147.9		(177.6)		970.3
Other liabilities	41.7		—		41.7		—		41.7
Total liabilities	5,148.1		1,234.0		6,382.1		(177.6)		6,204.5
Noncontrolling interest	—		255.2		255.2		—		255.2
Total Equity	$	996.4	$	121.6	$	1,118.0	$	(596.8)	$	521.2

	December 31, 2021
	Wholly- Owned Subsidiaries		Partially-Owned Subsidiaries		Total Leasing Group		Eliminations – Lease Subsidiary(1)		Adjusted Total Leasing Group
	(in millions)
Cash and cash equivalents	$	3.4	$	—	$	3.4	$	—	$	3.4
Accounts receivable	90.7		10.1		100.8		—		100.8
Property, plant, and equipment, net	5,706.1		1,570.6		7,276.7		(779.1)		6,497.6
Restricted cash	76.5		58.6		135.1		—		135.1
Other assets	67.3		2.1		69.4		—		69.4
Total assets	$	5,944.0	$	1,641.4	$	7,585.4	$	(779.1)	$	6,806.3
Accounts payable and accrued liabilities	$	113.4	$	30.1	$	143.5	$	—	$	143.5
Debt, net	3,555.8		1,216.1		4,771.9		—		4,771.9
Deferred income taxes	1,114.2		1.1		1,115.3		(176.6)		938.7
Other liabilities	35.6		—		35.6		—		35.6
Total liabilities	4,819.0		1,247.3		6,066.3		(176.6)		5,889.7
Noncontrolling interest	—		267.0		267.0		—		267.0
Total Equity	$	1,125.0	$	127.1	$	1,252.1	$	(602.5)	$	649.6

(1) Net deferred profit on railcars sold to the Leasing Group consists of intersegment profit that is eliminated in consolidation. Net deferred profit and the related deferred tax impact are included as adjustments to the property, plant, and equipment, net and deferred income taxes line items, respectively, in the Eliminations – Lease Subsidiary column above to reflect the net book value of the railcars purchased by the Leasing Group from the Rail Products Group based on manufacturing cost. See Note 5 and Note 8 for a further discussion regarding our investment in our partially-owned leasing subsidiaries and the related indebtedness.

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022			2021			Percent		2022			2021			Percent
	($ in millions)						Change		($ in millions)						Change
Revenues:
Leasing and management	$	194.8		$	185.5		5.0	%	$	573.2		$	554.1		3.4	%
Operating profit (1):
Leasing and management	$	73.6		$	76.4		(3.7)	%	$	220.2		$	223.0		(1.3)	%
Lease portfolio sales (2)	34.3			32.9			*		73.0			45.7			*
Total operating profit	$	107.9		$	109.3		(1.3)	%	$	293.2		$	268.7		9.1	%
Total operating profit margin	55.4		%	58.9		%			51.2		%	48.5		%
Leasing and management operating profit margin	37.8		%	41.2		%			38.4		%	40.2		%
Selected expense information:
Depreciation (3)	$	59.1		$	58.7		0.7	%	$	175.7		$	170.5		3.0	%
Maintenance and compliance	$	28.2		$	22.8		23.7	%	$	84.7		$	73.7		14.9	%
Rent and ad valorem taxes	$	5.2		$	5.0		4.0	%	$	15.5		$	14.3		8.4	%
Selling, engineering, and administrative expenses	$	14.2		$	11.6		22.4	%	$	39.6		$	36.1		9.7	%
Interest (4)	$	49.2		$	39.9		23.3	%	$	133.9		$	142.6		(6.1)	%

* Not meaningful

(1) Operating profit includes: depreciation; fleet operating costs, which include maintenance, compliance, freight, and storage; rent and ad valorem taxes; and selling, engineering, and administrative expenses. Amortization of deferred profit on railcars sold from the Rail Products Group to the Leasing Group is included in the operating profit of the Leasing Group, resulting in the recognition of depreciation expense based on our original manufacturing cost of the railcars. Interest expense is not a component of operating profit and includes the effect of hedges.

(2) Includes $1.3 million selling profit associated with sales-type leases for the nine months ended September 30, 2022.

(3) Depreciation expense includes $2.4 million and $8.5 million for the three and nine months ended September 30, 2022, respectively, related to the disposal of certain railcar components associated with our sustainable railcar conversion program. For the three and nine months ended September 30, 2021, depreciation expense includes $4.7 million and $7.3 million, respectively, related to our sustainable railcar conversion program.

(4) Interest expense for the nine months ended September 30, 2022 includes $1.5 million of loss on extinguishment of debt associated with the repayment of TRIP Railcar Co.'s outstanding term loan agreement. Interest expense for the nine months ended September 30, 2021 includes $11.7 million of loss on extinguishment of debt associated with the refinancing of our partially-owned subsidiaries' debt.

Information related to lease portfolio sales is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	($ in millions)
Lease portfolio sales	$	299.6		$	322.1		$	514.8		$	410.9
Operating profit on lease portfolio sales (1)	$	34.3		$	32.9		$	71.7		$	45.7
Operating profit margin on lease portfolio sales	11.4		%	10.2		%	13.9		%	11.1		%

(1) Excludes $1.3 million selling profit associated with sales-type leases for the nine months ended September 30, 2022.

Railcar Leasing Equipment Portfolio. The Leasing Group's equipment consists primarily of railcars leased by third parties. The Leasing Group purchases equipment manufactured predominantly by the Rail Products Group and enters into lease contracts with third parties with terms generally ranging between one year and ten years. The Leasing Group primarily enters into operating leases. Future contractual minimum rental revenues on operating leases related to our wholly-owned and partially-owned subsidiaries are as follows:

	Remaining three months of 2022		2023		2024		2025		2026		Thereafter		Total
	(in millions)
Future contractual minimum rental revenues	$	154.2	$	512.2	$	402.2	$	304.8	$	218.1	$	368.9	$	1,960.4

Debt. Wholly-owned subsidiaries. The Leasing Group’s debt at September 30, 2022 consisted primarily of non-recourse debt. As of September 30, 2022, Trinity’s wholly-owned subsidiaries included in the Leasing Group held equipment with a net book value of $5,431.2 million, which is pledged solely as collateral for Leasing Group debt held by those subsidiaries. The net book value of unpledged equipment at September 30, 2022 was $350.8 million. See Note 8 for more information regarding the Leasing Group debt.

Partially-owned subsidiaries. Debt owed by TRIP Holdings and RIV 2013 and their respective subsidiaries is nonrecourse to Trinity and TILC. Creditors of each of TRIP Holdings and RIV 2013 and their respective subsidiaries have recourse only to the particular subsidiary's assets. As of September 30, 2022, TRIP Holdings held equipment with a net book value of $1,078.6 million, which is pledged solely as collateral for the TRIP Holdings' debt held by its subsidiaries. As of September 30, 2022, TRP-2021 equipment with a net book value of $454.9 million is pledged solely as collateral for the TRP-2021 debt. See Note 5 for a description of TRIP Holdings and RIV 2013 and their respective subsidiaries.

Operating Lease Obligations. Future amounts due as well as future contractual minimum rental revenues related to the Leasing Group's railcar operating lease obligations are as follows:

	Remaining three months of 2022		2023		2024		2025		2026		Thereafter		Total
	(in millions)
Future operating lease obligations	$	3.2	$	11.9	$	7.9	$	6.0	$	5.7	$	8.7	$	43.4
Future contractual minimum rental revenues	$	2.5	$	7.7	$	3.8	$	2.6	$	1.9	$	0.5	$	19.0

Operating lease obligations totaling $1.4 million are guaranteed by Trinity Industries, Inc. and certain subsidiaries. The Leasing Group also has future amounts due for operating lease obligations related to office space of approximately $0.2 million, which is excluded from the table above.

XML

Property, Plant, and Equipment

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment

Property, Plant, and Equipment

The following table summarizes the components of property, plant, and equipment:

	September 30, 2022		December 31, 2021
	(in millions)
Manufacturing/Corporate:
Land	$	15.8	$	17.4
Buildings and improvements	385.0		377.4
Machinery and other	406.0		415.1
Construction in progress	15.9		18.1
	822.7		828.0
Less: accumulated depreciation	(481.1)		(478.7)
	341.6		349.3
Leasing:
Wholly-owned subsidiaries:
Machinery and other	21.6		20.7
Equipment on lease	7,223.5		7,061.3
	7,245.1		7,082.0
Less: accumulated depreciation	(1,452.0)		(1,375.9)
	5,793.1		5,706.1
Partially-owned subsidiaries:
Equipment on lease	2,234.5		2,242.9
Less: accumulated depreciation	(701.0)		(672.3)
	1,533.5		1,570.6
Deferred profit on railcars sold to the Leasing Group	(1,057.5)		(1,047.3)
Less: accumulated amortization	283.1		268.2
	(774.4)		(779.1)
	$	6,893.8	$	6,846.9

XML

Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt

Debt

The carrying amounts of our debt are as follows:

	September 30, 2022		December 31, 2021
	(in millions)
Corporate – Recourse:
Revolving credit facility	$	60.0	$	—
Senior notes, net of unamortized discount of $0.1 and $0.1	399.9		399.9
	459.9		399.9
Less: unamortized debt issuance costs	(0.9)		(1.2)
Total recourse debt	459.0		398.7
Leasing – Non-recourse:
Wholly-owned subsidiaries:
Secured railcar equipment notes, net of unamortized discount of $0.4 and $0.5	2,412.3		2,257.5
2017 promissory notes, net of unamortized discount of $6.2 and $7.8	726.6		760.2
TILC warehouse facility	728.2		561.8
	3,867.1		3,579.5
Less: unamortized debt issuance costs	(22.6)		(23.7)
	3,844.5		3,555.8
Partially-owned subsidiaries:
Secured railcar equipment notes, net of unamortized discount of $0.4 and $0.3	1,200.7		903.5
TRIP Railcar Co. term loan	—		323.7
	1,200.7		1,227.2
Less: unamortized debt issuance costs	(10.5)		(11.1)
	1,190.2		1,216.1
Total non–recourse debt	5,034.7		4,771.9
Total debt	$	5,493.7	$	5,170.6

Estimated Fair Value of Debt – The estimated fair value of our 4.55% senior notes due 2024 ("Senior Notes") is based on a quoted market price in a market with little activity (Level 2 input). The estimated fair values of our secured railcar equipment notes are based on our estimate of their fair value using unobservable input values provided by a third party (Level 3 inputs). The respective carrying values of our revolving credit facility, 2017 promissory notes, TILC warehouse facility, and TRIP Railcar Co. term loan approximate fair value because the interest rate adjusts to the market interest rate. The estimated fair values of our debt are as follows:

	September 30, 2022		December 31, 2021
	(in millions)
Level 1	$	1,514.8	$	1,645.7
Level 2	381.5		420.8
Level 3	3,284.8		3,215.4
	$	5,181.1	$	5,281.9

Revolving Credit Facility – We have a $450.0 million unsecured corporate revolving credit facility. In July 2022, we amended our revolving credit facility to extend its maturity date to the earlier of (i) July 25, 2027 or (ii) July 2, 2024 if our Senior Notes have not been repaid in full by that date.

During the nine months ended September 30, 2022, we had total borrowings of $545.0 million and total repayments of $485.0 million under the revolving credit facility. Additionally, we had outstanding letters of credit issued in an aggregate amount of $4.9 million. Of the $385.1 million remaining unused amount, $264.1 million was available for borrowing as of September 30, 2022. The majority of our outstanding letters of credit as of September 30, 2022 are scheduled to expire in November 2023. Our letters of credit obligations support performance bonds related to certain railcar orders. The revolving credit facility bears interest at a variable rate of Secured Overnight Financing Rate ("SOFR") plus 2.35%, for an all-in interest rate of 5.34% as of September 30, 2022. A commitment fee accrues on the average daily unused portion of the revolving credit facility at the rate of 0.175% to 0.40% (0.35% as of September 30, 2022).

The revolving credit facility requires the maintenance of ratios related to minimum interest coverage for the leasing and manufacturing operations and maximum leverage. In July 2022, we amended our revolving credit facility to increase the maximum leverage ratio to provide additional flexibility. As of September 30, 2022, we were in compliance with all such financial covenants.

TILC Warehouse Loan Facility – TILC has a $1.0 billion warehouse loan facility, which was established to finance railcars owned by TILC. During the nine months ended September 30, 2022, we had total borrowings of $554.1 million and total repayments of $387.7 million under the TILC warehouse loan facility. Of the remaining unused facility amount of $271.8 million, $142.1 million was available as of September 30, 2022 based on the amount of warehouse-eligible, unpledged equipment. In August 2022, we amended our warehouse loan facility to transition the facility benchmark rate from LIBOR to SOFR plus a benchmark adjustment. Advances under the facility bear interest at one-month term SOFR plus (1) a benchmark adjustment of 11 basis points and (2) a facility margin of 185 basis points, for an all-in interest rate of 4.48% at September 30, 2022.

TRL-2022 – In April 2022, Trinity Rail Leasing 2022 LLC, a Delaware limited liability company ("TRL-2022") and a limited purpose, indirect wholly-owned subsidiary of the Company owned through TILC, issued an aggregate principal amount of $244.8 million of its Series 2022-1 Class A Green Secured Railcar Equipment Notes (the "TRL-2022 Notes"). The TRL-2022 Notes bear interest at a fixed rate of 4.55%, are payable monthly, and have a stated final maturity date of May 20, 2052. We incurred $2.6 million in debt issuance costs, which will be amortized to interest expense through the anticipated repayment date of the TRL-2022 Notes. The TRL-2022 Notes are obligations of TRL-2022 and are non-recourse to Trinity. The obligations are secured by a portfolio of railcars and operating leases thereon, certain cash reserves, and other assets to be acquired and owned by TRL-2022. Net proceeds received from the railcars acquired in connection with the issuance of the TRL-2022 Notes were used to repay approximately $209.9 million of borrowings under TILC's warehouse loan facility and for general corporate purposes.

Tribute Rail – In May 2022, Tribute Rail, an indirect, wholly-owned subsidiary of TRIP Holdings, issued an aggregate principal amount of (i) $290.0 million of its Series 2022-1 Class A Green Secured Railcar Equipment Notes (the “Class A Notes”) and (ii) $37.0 million of its Series 2022-1 Class B Green Secured Railcar Equipment Notes (the “Class B Notes”) (the Class A Notes and the Class B Notes are, collectively, the “Tribute Rail Notes”). The Class A Notes bear interest at a fixed rate of 4.76%, and the Class B Notes bear interest at a fixed rate of 5.75%. The Tribute Rail Notes are payable monthly and have a stated final maturity date of May 17, 2052. We incurred $3.4 million in debt issuance costs, which will be amortized to interest expense through the anticipated repayment date of the Tribute Rail Notes. The Tribute Rail Notes are non-recourse to Trinity, TILC, TRIP Holdings, and the other equity investors in TRIP Holdings, and are secured by Tribute Rail's portfolio of railcars and operating leases thereon, certain cash reserves, and other assets acquired and owned by Tribute Rail.

Tribute Rail used the proceeds from the sale of the Tribute Rail Notes to purchase railcars and related operating leases from TRIP Railcar Co. TRIP Railcar Co. used the proceeds from Tribute Rail to repay its outstanding term loan agreement due June 2025, of which $319.4 million was outstanding at the redemption date. In connection with the redemption, we recognized a loss on extinguishment of debt of $1.5 million, which related to the write-off of unamortized debt issuance costs. This write-off is reflected in the loss on extinguishment of debt line of our Consolidated Statements of Operations for the nine months ended September 30, 2022.

Each of our secured railcar equipment notes, including the TRL-2022 Notes and the Tribute Rail Notes, generally has an anticipated repayment date and a stated final maturity date. While the stated final maturity date of these notes is in 2052, the cash flows from the encumbered assets of each of TRL-2022 and Tribute Rail will be applied, pursuant to the payment priorities of their respective indentures, so as to amortize their respective notes to achieve monthly targeted principal balances. If the cash flow assumptions used in determining the targeted balances are met, it is anticipated that the notes will be repaid well in advance of their stated final maturity date. There can be no assurance, however, that such cash flow assumptions will be realized. If these notes are not repaid by the anticipated repayment date, the respective interest rates on these notes would increase from the fixed rates stated above.Terms and conditions of our other long-term debt, including recourse and non-recourse provisions and scheduled maturities, are described in Note 8 of our 2021 Annual Report on Form 10-K.

XML

Income Taxes

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate from continuing operations for the three and nine months ended September 30, 2022 was 22.5% and 23.7%, respectively, which differs from the U.S. statutory rate of 21.0% primarily due to state income taxes, foreign taxes, non-deductible executive compensation, excess tax benefits associated with equity-based compensation, taxes not recorded on our non-controlling interests in partially-owned subsidiaries, and a reduction of our uncertain tax positions balance due to a lapse of a state statute of limitations.

For the three months ended September 30, 2021, we recorded income tax expense of $8.3 million on income from continuing operations before income taxes of $33.8 million, which differs from the U.S. statutory rate primarily due to excess tax benefits associated with equity-based compensation. For the nine months ended September 30, 2021, we recorded income tax expense of $9.4 million on income from continuing operations before income taxes of $27.1 million, which differs from the U.S. statutory rate primarily due to adjustments to the Coronavirus Aid, Relief, and Economic Security Act carryback benefit previously recognized, partially offset by excess tax benefits associated with equity-based compensation.

The total income tax receivable position as of September 30, 2022 was $11.0 million.

Our tax years through 2019 are effectively settled except with respect to carryback claims related to the 2013 through 2015 tax years, which are currently in review. We do not expect any significant changes to the carryback claims. We have state tax returns that are under audit in the normal course of business, and our Mexican subsidiaries' tax returns statutes of limitations remain open for auditing 2017 forward. We believe we are appropriately reserved for any potential matters.

XML

Employee Retirement Plans

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

Employee Retirement Plans

Employee Retirement Plans

Our defined contribution expense for the three and nine months ended September 30, 2022 was $2.5 million and $6.8 million, respectively. Our defined contribution expense for the three and nine months ended September 30, 2021 was $2.5 million and $6.8 million, respectively.

The net periodic benefit cost related to our Supplemental Executive Retirement Plan was $0.2 million and $0.5 million for the three and nine months ended September 30, 2022. The net periodic benefit cost related to our Supplemental Executive Retirement Plan was $0.1 million and $0.5 million for the three and nine months ended September 30, 2021, respectively. The non-service cost components of net periodic benefit cost are included in other, net (income) expense in our Consolidated Statements of Operations.

Pension Plan Termination

In September 2019, our Board of Directors approved the termination of the Trinity Industries, Inc. Consolidated Pension Plan (the "Pension Plan"), effective December 31, 2019. The Pension Plan was settled in the fourth quarter of 2020, which resulted in the Company no longer having any remaining funded pension plan obligations. Upon settlement, we recognized a pre-tax non-cash pension settlement charge in the fourth quarter of 2020 of $151.5 million, which was inclusive of all unamortized losses previously recorded in AOCI.

During the nine months ended September 30, 2021, we used $2.2 million to fund pension administrative expenses required to finalize the settlement of the Pension Plan, which is included in other, net (income) expense in our Consolidated Statements of Operations. There were no pension administrative expenses for the three months ended September 30, 2022 and 2021. During the nine months ended September 30, 2022, we used $0.2 million to fund pension administrative expenses, resulting in a remaining surplus of the Pension Plan of $0.4 million at September 30, 2022.

XML

Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Income (Loss)

Changes in AOCI for the nine months ended September 30, 2022 are as follows:

	Currency translation adjustments		Unrealized gains/(losses) on derivative financial instruments		Net actuarial gains/(losses) of defined benefit plans		Accumulated other comprehensive income (loss)
	(in millions)
Balances at December 31, 2021	$	(1.3)	$	(12.2)	$	(3.5)	$	(17.0)
Other comprehensive income, net of tax, before reclassifications	—		26.8		—		26.8
Amounts reclassified from AOCI, net of tax benefit of $—, $1.2, $—, and $1.2	—		4.6		0.2		4.8
Amounts reclassified to discontinued operations, net of tax	1.3		—		—		1.3
Less: noncontrolling interest	—		0.5		—		0.5
Other comprehensive income	1.3		31.9		0.2		33.4
Balances at September 30, 2022	$	—	$	19.7	$	(3.3)	$	16.4

See Note 3 for information on the reclassification of amounts in AOCI into earnings. Reclassifications of unrealized before-tax gains and losses on derivative financial instruments are included in interest expense, net for our interest rate hedges and in cost of revenues for our foreign currency hedges in our Consolidated Statements of Operations. Reclassifications of before-tax net actuarial gains/(losses) of defined benefit plans are included in other, net (income) expense in our Consolidated Statements of Operations. Changes in currency translation adjustments above relate to the final resolution of amounts associated with businesses previously disposed and are included in loss on sale of discontinued operations, net of income taxes in our Consolidated Statements of Operations.

XML

Common Stock and Stock-Based Compensation

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Common Stock and Stock-Based Compensation

Stockholders' Equity

In September 2021, our Board of Directors authorized a new share repurchase program effective September 9, 2021 through December 31, 2022. The new share repurchase program authorizes the Company to repurchase up to $250.0 million of its common stock. In December 2021, we entered into an accelerated share repurchase agreement (the "ASR") to repurchase $125.0 million of our common stock. Approximately 3.3 million shares repurchased as part of the ASR on December 31, 2021 were delivered to the Company in January 2022 in accordance with normal settlement practices, representing approximately 80% of the total notional value of the ASR. The ASR was completed in April 2022. Share repurchase activity under the authorized program is as follows:

	Shares Repurchased			Remaining Authorization to Repurchase
Period	Number of Shares	Cost (in millions)		Cost (in millions)
September 9, 2021 Authorization				$	250.0
September 9, 2021 through September 30, 2021	—	$	—	$	250.0
October 1, 2021 through December 31, 2021	5,155,491	151.9		$	98.1
January 1, 2022 through March 31, 2022	—	—		$	98.1
April 1, 2022 through June 30, 2022	1,760,462	50.3		$	47.8	(1)
July 1, 2022 through September 30, 2022	610,000	14.1		$	33.7
Total	7,525,953	$	216.3

(1) Share repurchases during the second quarter of 2022 included 760,602 shares at a cost of $25.0 million representing the final settlement of the ASR, which was funded in December 2021 but a portion of which remained outstanding as of December 31, 2021.

Certain shares of stock repurchased during September 2022, totaling $2.6 million, were cash settled in October 2022 in accordance with normal settlement practices.

During the three and nine months ended September 30, 2021, share repurchases totaled 2.8 million and 14.6 million, respectively, at a cost of approximately $77.1 million and $404.7 million, respectively. Share repurchases during the nine months ended September 30, 2021 included 8.1 million shares, at a cost of approximately $222.5 million, from a privately negotiated transaction with ValueAct Capital Master Fund, L.P ("ValueAct"). The repurchase from ValueAct was approved by our Board of Directors separately from, and did not reduce the authorized amount remaining under, the previous share repurchase program, which was completed in the third quarter of 2021.

Stock-Based Compensation

Stock-based compensation expense totaled approximately $5.9 million and $16.7 million for the three and nine months ended September 30, 2022, respectively. Stock-based compensation expense totaled approximately $6.0 million and $15.2 million for the three and nine months ended September 30, 2021, respectively. The Company's annual grant of share-based awards generally occurs in the second quarter under our 2004 Fourth Amended and Restated Stock Option and Incentive Plan (the "Plan”). Our stock options have contractual terms of ten years and become exercisable over a three-year period. Expense related to stock options is recognized on a straight-line basis over the vesting period. Expense related to restricted stock units ("RSUs") issued to eligible employees under the Plan is recognized over the vesting period, generally between three years and four years. Beginning in 2020, certain RSU grants provide for full vesting when the award recipients retire having reached 60 years of age and having provided at least ten years of service to the Company, provided that the awards remain outstanding for a period of six months from the date of grant. The expense for these awards is recognized over the applicable service period for each of the eligible award recipients. Expense related to RSUs and restricted stock awards ("RSAs") granted to non-employee directors under the Plan is recognized on a straight-line basis over the vesting period, generally one year. Expense related to performance units is recognized on a straight-line basis from their award date to the end of the performance period, generally three years.

The following table summarizes stock-based compensation awards granted during the nine months ended September 30, 2022:

	Number of Shares Granted	Weighted Average Grant-Date Fair Value per Award
Restricted stock units	630,449	$	25.64
Restricted stock awards	26,339	$	25.43
Performance units	243,084	$	29.89

XML

Earnings Per Common Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

Basic net income attributable to Trinity Industries, Inc. per common share ("EPS") is computed by dividing net income attributable to Trinity remaining after allocation to unvested restricted shares by the weighted average number of basic common shares outstanding for the period. Except when the effect would be antidilutive, the calculation of diluted EPS includes the net impact of potentially dilutive common shares. The Company has certain unvested RSAs that participate in dividends on a nonforfeitable basis and are therefore considered to be participating securities. Consequently, diluted net income attributable to Trinity Industries, Inc. per common share is calculated under both the two-class method and the treasury stock method, and the more dilutive of the two calculations is presented.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions, except per share amounts)
Income from continuing operations	$	29.7	$	25.5	$	56.1	$	17.7
Less: Net (income) loss attributable to noncontrolling interest	(0.5)		(3.9)		(7.9)		6.0
Net income from continuing operations attributable to Trinity Industries, Inc.	29.2		21.6		48.2		23.7
Income (loss) from discontinued operations, net of income taxes	(3.4)		10.4		(13.7)		24.3
Loss on sale of discontinued operations, net of income taxes	—		—		(5.7)		—
Net income (loss) from discontinued operations attributable to Trinity Industries, Inc.	(3.4)		10.4		(19.4)		24.3
Net income attributable to Trinity Industries, Inc.	$	25.8	$	32.0	$	28.8	$	48.0
Basic weighted average shares outstanding	81.7		97.7		82.3		103.4
Effect of dilutive securities	1.6		1.8		2.1		2.3
Diluted weighted average shares outstanding	83.3		99.5		84.4		105.7
Basic earnings per common share:
Income from continuing operations	$	0.36	$	0.22	$	0.59	$	0.23
Income (loss) from discontinued operations	(0.04)		0.11		(0.24)		0.23
Basic net income attributable to Trinity Industries, Inc.	$	0.32	$	0.33	$	0.35	$	0.46
Diluted earnings per common share:
Income from continuing operations	$	0.35	$	0.22	$	0.57	$	0.22
Income (loss) from discontinued operations	(0.04)		0.11		(0.23)		0.23
Diluted net income attributable to Trinity Industries, Inc.	$	0.31	$	0.33	$	0.34	$	0.45
Potentially dilutive securities excluded from EPS calculation:
Antidilutive restricted shares	0.3		0.1		0.1		0.1
Antidilutive stock options	—		—		—		—

XML

Contingencies

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

Highway products litigation

We previously reported the filing of a False Claims Act (“FCA”) complaint in the United States District Court for the Eastern District of Texas, Marshall Division (“District Court”) styled Joshua Harman, on behalf of the United States of America, Plaintiff/Relator v. Trinity Industries, Inc., Defendant, Case No. 2:12-cv-00089-JRG (E.D. Tex.). In this case, in which the U.S. Government declined to intervene, the relator, Mr. Joshua Harman, alleged the Company violated the FCA pertaining to sales of the ET Plus. On October 20, 2014, a trial in this case concluded with a jury verdict stating that the Company and THP “knowingly made, used or caused to be made or used, a false record or statement material to a false or fraudulent claim," and the District Court entered judgment on the verdict in the total amount of $682.4 million. On September 29, 2017, the United States Court of Appeals for the Fifth Circuit ("Fifth Circuit") reversed the District Court’s $682.4 million judgment and rendered judgment as a matter of law in favor of the Company and THP. On January 7, 2019, the United States Supreme Court denied Mr. Harman's petition for certiorari seeking review of the Fifth Circuit's decision. The denial of Mr. Harman's petition ended this action.

Pursuant to the purchase and sale agreement related to the sale of THP, the Company has agreed to indemnify Rush Hour for certain liabilities related to the highway products business, including those liabilities resulting from or arising out of (a) the proceedings set forth under “State actions” and "Missouri class action" below and (b) any other proceedings to the extent resulting from or arising out of ET Plus systems or specified ET Plus component parts that are both (i) manufactured prior to December 31, 2021, and (ii) sold in the United States on or prior to April 30, 2022, or related warranty obligations with respect thereto.

State actions

Mr. Harman also has a separate state qui tam action currently pending pursuant to the Virginia Fraud Against Taxpayers Act ("VFATA") (Commonwealth of Virginia ex rel. Joshua M. Harman v. Trinity Industries, Inc. and Trinity Highway Products, LLC, Case No. CL13-698, in the Circuit Court, Richmond, Virginia). In this matter, Mr. Harman alleged the Company violated the VFATA pertaining to sales of the ET Plus, and he is seeking damages, civil penalties, attorneys’ fees, costs, and interest. The Commonwealth of Virginia Attorney General has intervened in the Virginia matter, which is scheduled for trial on April 17, 2023. The Company believes that the claims in this matter are without merit and intends to vigorously defend against all allegations.

In a similar Tennessee state qui tam action filed by Mr. Harman (State of Tennessee ex rel. Joshua M. Harman v. Trinity Industries, Inc., and Trinity Highway Products, LLC, Case No. 14C2652, in the Circuit Court for Davidson County, Tennessee), Mr. Harman alleged the Company violated the Tennessee False Claim Act pertaining to sales of the ET Plus, and he is seeking damages, civil penalties, attorneys’ fees, costs, and interest. The State of Tennessee Attorney General filed a Notice of Election to Decline Intervention in this matter. On January 10, 2022, the trial court granted Trinity’s Motion to Dismiss Harman’s Second Amended Complaint and entered an order dismissing Mr. Harman’s complaint with prejudice. On February 7, 2022, Mr. Harman filed a Notice of Appeal of the trial court's order dismissing the case. Mr. Harman's appeal remains pending. The Company believes that the claims in this matter are without merit and intends to vigorously defend against all allegations.

In a similar New Jersey state qui tam action (State of New Jersey ex rel. Joshua M. Harman v. Trinity Industries, Inc. and Trinity Highway Products, LLC, Case No.L-1344-14, in the Superior Court of New Jersey Law Division: Mercer County) that was previously dismissed by the trial court, Mr. Harman sought leave to file an amended complaint pursuant to the New Jersey False Claims Act. On February 16, 2022, the trial court denied Mr. Harman’s motion. On March 9, 2022, Mr. Harman filed a motion for reconsideration of the trial court’s order denying leave to file an amended complaint. On June 27, 2022, the trial court denied Mr. Harman’s motion for reconsideration seeking leave to file an amended complaint with prejudice. On August 9, 2022, Mr. Harman filed a Notice of Appeal of the trial court's order denying Mr. Harman's motion for reconsideration. Mr. Harman's appeal remains pending. The Company believes that the claims in this matter are without merit and intends to vigorously defend against all allegations.

As previously reported, state qui tam actions filed by Mr. Harman in the states of Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Minnesota, Montana, Nevada, Rhode Island, and California were dismissed. Also as previously reported, in June 2022, a state qui tam action filed by Mr. Harman in the state of Massachusetts was settled for $5.0 million, which is included in income (loss) from discontinued operations, net of income taxes, in our Consolidated Statement of Operations for the nine months ended September 30, 2022.

Based on information currently available to the Company and previously disclosed, we currently do not believe that a loss is probable in the Virginia, Tennessee, and New Jersey state qui tam actions described under "State actions," therefore no accrual has been included in the accompanying Consolidated Financial Statements. Because of the complexity of these actions, as well as the current status of certain of these actions, we are not able to estimate a range of possible losses with respect to any one or more of these actions. While the financial impacts of these state actions are currently unknown, they could be material.

Missouri class action

On November 5, 2015, a lawsuit was filed against the Company titled Jackson County, Missouri, individually and on behalf of a class of others similarly situated vs. Trinity Industries, Inc. and Trinity Highway Products, LLC, Case No. 1516-CV23684 (Circuit Court of Jackson County, Missouri). The case was being brought by plaintiff for and on behalf of itself and all Missouri counties with a population of 10,000 or more persons, including the City of St. Louis, and the State of Missouri’s transportation authority. The plaintiff alleged that the Company and THP did not disclose design changes to the ET Plus and these allegedly undisclosed design changes made the ET Plus allegedly defective, unsafe, and unreasonably dangerous. The plaintiff alleged product liability negligence, product liability strict liability, and negligently supplying dangerous instrumentality for supplier’s business purposes. The plaintiff sought compensatory damages, interest, attorneys' fees, and costs, and in the alternative plaintiff sought a declaratory judgment that the ET Plus is defective, the Company’s conduct was unlawful, and class-wide costs and expenses associated with removing and replacing the ET Plus throughout Missouri. On December 6, 2017, the Court granted plaintiff's Motion for Class Certification, certifying a class of Missouri counties with populations of 10,000 or more persons, including the City of St. Louis and the State of Missouri's transportation authority that have or had ET Plus guardrail end terminals with 4-inch wide guide channels installed on roadways they own or maintain.

The parties reached an agreement to settle all claims in this case without any admission of liability or fault. Defendants have denied and continue to deny specifically each and all of the claims and contentions alleged in this case. The Company’s settlement with the class avoids the uncertainty and expense of continued litigation. On May 30, 2022, the trial court granted preliminary approval of the settlement, and on August 30, 2022, the trial court granted final approval of the settlement. Pursuant to the settlement, the Company will pay for the past replacement of certain ET Plus systems, for locating and replacing certain existing undamaged ET Plus systems, and for attorneys’ fees and costs. In accordance with ASC 450, Contingencies, the Company recorded a pre-tax charge of $23.9 million ($18.3 million, net of income taxes) during the year ended December 31, 2021, which was included in income from discontinued operations, net of income taxes, in our Consolidated Statement of Operations, based on the Company’s assessment that a settlement was probable and the estimated costs to resolve this action. Certain amounts involved in the settlement cannot be precisely determined at this time as the actual number of qualifying ET Plus systems that will be replaced as part of the settlement is not currently known. Consequently, the corresponding liability will be periodically reviewed and adjusted, when appropriate, for a number of factors, including differences between actual and estimated costs. The accrual and related range of reasonably possible loss related to this matter are included in the amounts described below under "Other matters."

Product liability cases

The Company is currently defending product liability lawsuits in several different states that are alleged to involve the ET Plus as well as other products manufactured by THP. These cases are diverse in light of the randomness of collisions in general and the fact that each accident involving a roadside device, such as an end terminal, or any other fixed object along the highway, has its own unique facts and circumstances. The Company carries general liability insurance to mitigate the impact of adverse judgment exposures in these product liability cases. To the extent that the Company believes that a loss is probable with respect to these product liability cases, the accrual for such losses is included in the amounts described below under "Other matters".

Other matters

The Company is involved in claims and lawsuits incidental to our business arising from various matters, including product warranty, personal injury, environmental issues, workplace laws, and various governmental regulations. The Company evaluates its exposure to such claims and suits periodically and establishes accruals for these contingencies when a range of loss can be reasonably estimated. The range of reasonably possible losses for such matters is $37.0 million to $51.2 million, which includes our rights in indemnity and recourse to third parties of approximately $10.1 million, which is recorded in other assets in our Consolidated Balance Sheet as of September 30, 2022. This range includes any amounts related to the Highway Products litigation matters described above in the section titled “Highway products litigation." At September 30, 2022, total accruals of $37.3 million, including environmental and workplace matters described below, are included in accrued liabilities in the accompanying Consolidated Balance Sheets. The Company believes any additional liability would not be material to its financial position or results of operations.

Trinity is subject to remedial orders and federal, state, local, and foreign laws and regulations relating to the environment and the workplace. The Company has reserved $1.0 million to cover our probable and estimable liabilities with respect to the investigations, assessments, and remedial responses to such matters, taking into account currently available information and our contractual rights to indemnification and recourse to third parties. However, estimates of liability arising from future proceedings, assessments, or remediation are inherently imprecise. Accordingly, there can be no assurance that we will not become involved in future litigation or other proceedings involving the environment and the workplace or, if we are found to be responsible or liable in any such litigation or proceeding, that such costs would not be material to the Company. We believe that we are currently in substantial compliance with environmental and workplace laws and regulations.

Georgia tornado

On March 26, 2021, a tornado damaged the Company’s rail maintenance facility in Cartersville, Georgia. We incurred costs related to cleanup and damage remediation activities in order for the facility to resume operations in the second quarter of 2021. We believe our insurance coverage is sufficient to cover property damage costs related to the event. To date, we have received total advanced payments from insurance of approximately $25.4 million, which includes $8.1 million for reimbursement of cleanup and damage remediation expenditures. As of September 30, 2022, we have utilized $17.0 million of the advanced payments from insurance towards new capital expenditures in support of the reconstruction efforts.

During the first six months of 2022, we recorded an insurance receivable of approximately $7.3 million for additional property damage recoveries that we expect to be reimbursed under the terms of our insurance policy, and we recorded a corresponding gain, net of the applicable deductible, of $6.4 million, which is included in the gains on dispositions of other property line in our Consolidated Statements of Operations. We received $4.8 million of reimbursements for property damage recoveries, resulting in a remaining insurance receivable of $2.5 million as of June 30, 2022.

During the third quarter of 2022, we recorded an additional insurance receivable of approximately $2.9 million for additional insurance recoveries that we expect to be reimbursed under the terms of our insurance policy, and we recorded a gain of $1.1 million, which is included in the gains on dispositions of other property line in our Consolidated Statements of Operations. We received $2.8 million of reimbursements during the third quarter of 2022, resulting in a remaining insurance receivable of $2.6 million as of September 30, 2022.

Any additional property damage insurance proceeds received in excess of the net book value of property lost will be accounted for as gains in future quarters.

XML

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

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 consolidated subsidiaries (“Trinity,” “Company,” “we,” “our,” or "us") including the accounts of our wholly-owned subsidiaries and partially-owned subsidiaries, TRIP Rail Holdings LLC (“TRIP Holdings”) and RIV 2013 Rail Holdings LLC ("RIV 2013"), in which we have a controlling interest. In our opinion, all normal and recurring adjustments necessary for a fair presentation of our financial position as of September 30, 2022, the results of operations for the three and nine months ended September 30, 2022 and 2021, and cash flows for the nine months ended September 30, 2022 and 2021, have been made in conformity with generally accepted accounting principles. All significant intercompany accounts and transactions have been eliminated. Certain prior year balances have been reclassified to conform to the 2022 presentation.

Due to seasonal and other factors, including the ongoing impacts of the coronavirus pandemic (“COVID-19”), the results of operations for the nine months ended September 30, 2022 may not be indicative of expected results of operations for the year ending December 31, 2022. These interim financial statements and notes are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with our audited Consolidated Financial Statements included in our Form 10-K for the year ended December 31, 2021.

Discontinued Operations, Policy

Sale of Highway Products Business

In the fourth quarter of 2021, the Company completed the sale of Trinity Highway Products, LLC (“THP”), a wholly-owned subsidiary of the Company, and certain direct and indirect subsidiaries of THP, to Rush Hour Intermediate II, LLC ("Rush Hour"), an entity owned by an affiliated investment fund of Monomoy Capital Partners, for an aggregate purchase price of $375.0 million, subject to a final working capital adjustment, which was recorded in the second quarter of 2022.

We concluded that the sale of THP represented a strategic shift that will have a major effect on the Company’s operations and financial results. Accordingly, we have presented the operating results and cash flows of THP as discontinued operations for all periods in this Quarterly Report on Form 10-Q. Results of prior periods have been recast to reflect these changes and present results on a comparable basis. See Note 2 for further information related to the sale of THP.

Revenue [Policy Text Block]

Revenue Recognition

Revenue is measured based on the allocation of the transaction price in a contract to satisfied performance obligations. The transaction price does not include any amounts collected on behalf of third parties. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer. Payments for our products and services are generally due within normal commercial terms. The following is a description of principal activities from which we generate our revenue, separated by reportable segments. See Note 4 for a further discussion regarding our reportable segments.

Railcar Leasing and Management Services Group

In our Railcar Leasing and Management Services Group ("Leasing Group"), revenue from rentals and operating leases, including contracts that contain non-level fixed lease payments, is recognized monthly on a straight-line basis. Leases not classified as operating leases are generally considered sales-type leases as a result of an option to purchase.

We review our operating lease receivables for collectibility on a regular basis, taking into consideration changes in factors such as the lessee’s payment history, the financial condition of the lessee, and business and economic conditions in the industry in which the lessee operates. In the event that the collectibility of a receivable with respect to any lessee is no longer probable, we derecognize the revenue and related receivable and recognize future revenue only when the lessee makes a rental payment. Contingent rents are recognized when the contingency is resolved.

Selling profit or loss associated with sales-type leases is recognized upon lease commencement, and a net investment in the sales-type lease is recorded in the Consolidated Balance Sheets. Interest income related to sales-type leases is recognized over the lease term using the effective interest method. See "Lease Accounting" below for additional information regarding sales-type leases as of September 30, 2022. We had no sales-type leases as of December 31, 2021.

We report all sales of railcars from the lease fleet and selling profit or loss associated with sales-type leases as a net gain or loss from the disposal of a long-term asset in accordance with ASC 610-20, Gains and losses from the derecognition of non-financial assets. These sales are presented in the Lease portfolio sales line in our Consolidated Statements of Operations.

We account for shipping and handling costs as activities to fulfill the promise to transfer the good; as such, these fees are recorded in revenue. The fees and costs of shipping and handling activities are accrued when the related performance obligation has been satisfied.

Rail Products Group

Our railcar manufacturing business recognizes revenue related to new railcars when the customer has submitted its certificate of acceptance and legal title of the railcar has passed to the customer. Certain contracts for the sales of railcars include price adjustments based on steel-price indices; this amount represents variable consideration for which we are unable to estimate the final consideration until the railcar is delivered.

Revenue is recognized over time as repair and maintenance projects and sustainable railcar conversions are completed, using an input approach based on the costs incurred relative to the total estimated costs of performing the project. We recorded contract assets of $3.0 million and $4.5 million as of September 30, 2022 and December 31, 2021, respectively, related to unbilled revenues recognized on repair and maintenance services and sustainable railcar conversions that have been performed, but for which the entire project has not yet been completed, and the railcar has not yet been shipped to the customer. These contract assets are included within the Receivables, net of allowance line in our Consolidated Balance Sheets.

Unsatisfied Performance Obligations

The following table includes estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially satisfied as of September 30, 2022 and the percentage of the outstanding performance obligations as of September 30, 2022 expected to be delivered during the remainder of 2022:

	Unsatisfied performance obligations at September 30, 2022
	Total Amount		Percent expected to be delivered in 2022
	(in millions)
Rail Products Group:
New railcars:
External customers (1)	$	3,573.7
Leasing Group	517.2
	$	4,090.9	16.2	%
Sustainable railcar conversions	$	201.4	26.5	%
Railcar Leasing and Management Services Group	$	133.6	6.8	%

(1) Unsatisfied performance obligations at September 30, 2022 include 15,000 railcars expected to be delivered through 2028, valued at approximately $1.8 billion, associated with a new long-term railcar supply agreement with GATX Corporation.

The remainder of the unsatisfied performance obligations for the Rail Products Group is expected to be delivered through 2028. The orders in the Rail Products Group's backlog from the Leasing Group are fully supported by lease commitments with external customers. The final amount of backlog attributable to the Leasing Group may vary by the time of delivery as customers may elect to change their procurement decision.

Unsatisfied performance obligations for the Railcar Leasing and Management Services Group are related to servicing, maintenance, and management agreements and are expected to be performed through 2029.

Lessee, Leases [Policy Text Block]

Lessee

We are the lessee of operating leases predominantly for office buildings and railcars, as well as manufacturing equipment and office equipment. Our operating leases have remaining lease terms ranging from one year to fifteen years, some of which include options to extend for up to five years, and some of which include options to terminate within one year. As of September 30, 2022, we had no material finance leases in which we were the lessee. As applicable, the lease liability is reduced by the amount of lease incentives that have not yet been reimbursed by the lessor.

The following table summarizes the impact of our operating leases on our Consolidated Financial Statements (in millions, except lease term and discount rate):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022			2021
Consolidated Statements of Operations
Operating lease expense	$	4.6	$	4.0	$	13.5		$	11.3
Short-term lease expense	$	0.1	$	—	$	0.3		$	0.2
Consolidated Statements of Cash Flows
Cash flows from operating activities					$	13.5		$	11.3
Right-of-use assets recognized in exchange for new lease liabilities					$	21.0		$	23.7
					September 30, 2022			December 31, 2021
Consolidated Balance Sheets
Right-of-use assets (1)					$	89.9		$	82.8
Lease liabilities (2)					$	112.1		$	106.3
Weighted average remaining lease term					10.0 years			10.8 years
Weighted average discount rate					2.8		%	3.0		%

(1) Included in other assets in our Consolidated Balance Sheets.

(2) Included in other liabilities in our Consolidated Balance Sheets.

Future contractual minimum operating lease liabilities will mature as follows (in millions):

	Leasing Group		Non-Leasing Group		Total
Remaining three months of 2022	$	3.2	$	2.1	$	5.3
2023	12.0		7.9		19.9
2024	8.0		6.9		14.9
2025	6.0		6.1		12.1
2026	5.7		5.7		11.4
Thereafter	8.7		57.8		66.5
Total operating lease payments	$	43.6	$	86.5	$	130.1
Less: Present value adjustment					(18.0)
Total operating lease liabilities					$	112.1

Lessee, Operating Leases

The following table summarizes the impact of our operating leases on our Consolidated Financial Statements (in millions, except lease term and discount rate):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022			2021
Consolidated Statements of Operations
Operating lease expense	$	4.6	$	4.0	$	13.5		$	11.3
Short-term lease expense	$	0.1	$	—	$	0.3		$	0.2
Consolidated Statements of Cash Flows
Cash flows from operating activities					$	13.5		$	11.3
Right-of-use assets recognized in exchange for new lease liabilities					$	21.0		$	23.7
					September 30, 2022			December 31, 2021
Consolidated Balance Sheets
Right-of-use assets (1)					$	89.9		$	82.8
Lease liabilities (2)					$	112.1		$	106.3
Weighted average remaining lease term					10.0 years			10.8 years
Weighted average discount rate					2.8		%	3.0		%

(1) Included in other assets in our Consolidated Balance Sheets.

(2) Included in other liabilities in our Consolidated Balance Sheets.

Lessor, Leases [Policy Text Block]

Lessor

Our Leasing Group enters into railcar operating leases with third parties with terms generally ranging between one year and ten years. The majority of our fleet operates on leases that earn fixed monthly lease payments. Generally, lease payments are due at the beginning of the applicable month. A portion of our fleet operates on per diem leases that earn usage-based variable lease payments. Some of our leases include options to extend the leases for up to five years, and a small percentage of our leases include early termination options with certain notice requirements and early termination penalties. As of September 30, 2022, non-Leasing Group operating leases were not significant, and we had no direct finance leases.

We manage risks associated with residual values of leased railcars by investing across a diverse portfolio of railcar types, staggering lease maturities within any given railcar type, avoiding concentration of railcar type and industry, and actively participating in secondary markets. Additionally, our lease agreements contain normal wear and tear return condition provisions and high mileage thresholds designed to protect the value of our residual assets. Our lease agreements do not contain any material residual value guarantees or restrictive covenants.

The following table summarizes the impact of our leases on our Consolidated Statements of Operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Operating lease revenues	$	167.2	$	158.2	$	500.5	$	486.2
Variable operating lease revenues	$	17.7	$	18.8	$	49.0	$	44.7
Interest income on sales-type lease receivables	$	0.2	$	—	$	0.5	$	—
Profit recognized at sales-type lease commencement (1)	$	—	$	—	$	1.3	$	—

(1) Included in gains on dispositions of property – lease portfolio sales on our Consolidated Statements of Operations.

Future contractual minimum revenues for operating leases will mature as follows (in millions)(1):

Remaining three months of 2022	$	156.7
2023	519.9
2024	406.0
2025	307.4
2026	220.0
Thereafter	369.4
Total	$	1,979.4

(1) Total contractual minimum rental revenues on operating leases relates to our wholly-owned and partially-owned subsidiaries and sub-lease rental revenues associated with the Leasing Group's operating lease obligations.

Future contractual minimum lease receivables for sales-type leases will mature as follows (in millions)(1):

Remaining three months of 2022	$	0.3
2023	1.1
2024	1.1
2025	1.1
2026	1.1
Thereafter	11.2
Total	15.9
Less: Unearned interest income	(5.2)
Net investment in sales-type leases (1)	$	10.7

(1) Included in other assets in our Consolidated Balance Sheets.

Lessor, Operating Leases

The following table summarizes the impact of our leases on our Consolidated Statements of Operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Operating lease revenues	$	167.2	$	158.2	$	500.5	$	486.2
Variable operating lease revenues	$	17.7	$	18.8	$	49.0	$	44.7
Interest income on sales-type lease receivables	$	0.2	$	—	$	0.5	$	—
Profit recognized at sales-type lease commencement (1)	$	—	$	—	$	1.3	$	—

(1) Included in gains on dispositions of property – lease portfolio sales on our Consolidated Statements of Operations.

Cash and Cash Equivalents, Policy [Policy Text Block]

Financial Instruments

We consider all highly liquid debt instruments to be either cash and cash equivalents if purchased with a maturity of three months or less, or short-term marketable securities if purchased with a maturity of more than three months and less than one year.

Financial instruments that potentially subject us to a concentration of credit risk are primarily cash investments, including restricted cash and receivables. We place our cash investments in bank deposits, investment grade, short-term debt instruments, and highly-rated commercial paper. We limit the amount of credit exposure to any one commercial issuer. The carrying values of cash, receivables, and accounts payable are considered to be representative of their respective fair values.

Concentrations of credit risk with respect to receivables are limited due to control procedures that monitor the credit worthiness of customers, the large number of customers in our customer base, and their dispersion across different end markets and geographic areas. Receivables are generally evaluated at a portfolio level based on these characteristics. As receivables are generally unsecured, we maintain an allowance for credit losses using a forward-looking approach based on historical losses and consideration of current and expected future economic conditions. Historically, we have observed that the likelihood of loss increases when receivables have aged beyond 180 days. When a receivable is deemed uncollectible, the write-off is recorded as a reduction to allowance for credit losses. During the nine months ended September 30, 2022, we recognized approximately $1.7 million of credit loss expense and wrote off $1.9 million related to our trade receivables that are in the scope of ASC 326, Financial Instruments – Credit Losses, bringing the allowance for credit losses balance from $10.5 million at December 31, 2021 to $10.3 million at September 30, 2022. This balance excludes the general reserve for operating lease receivables that is permitted under ASC 450, Contingencies.

Business Combinations Policy

Acquisitions

In June 2022, the Leasing Group acquired, from an unrelated seller, a portfolio of railcars for $132.1 million in cash. This transaction was recorded as an asset acquisition within the Leasing Group, based on valuations of the acquired assets and liabilities at their acquisition date fair value using Level 3 inputs. As a result of the purchase transaction, the Leasing Group acquired approximately 3,800 railcars, substantially all of which are currently under lease to third parties. We recorded acquired railcars of $125.0 million, lease-related intangible assets of $7.8 million, and certain other immaterial assets and liabilities in our Consolidated Balance Sheet as of the purchase date.

In May 2022, we completed the acquisition of a company that owns and operates an end-to-end rail logistics software platform providing a real-time data universe to freight rail shippers and operators. This transaction was recorded as a business combination within the Leasing Group, based on valuations of the acquired assets and liabilities at their acquisition date fair value using Level 3 inputs. The acquisition did not have a significant impact on our Consolidated Financial Statements. Based on our preliminary purchase price allocation, we recorded intellectual property of $5.2 million, which will be amortized over five years, goodwill of $5.3 million, and certain other immaterial assets and liabilities.

In January 2021, we completed the acquisition of a company that owns and operates proprietary railcar cleaning technology systems. This transaction was recorded as a business combination within the Rail Products Group, based on valuations of the acquired assets and liabilities at their acquisition date fair value using Level 3 inputs. The acquisition did not have a significant impact on our Consolidated Financial Statements. This transaction resulted in goodwill of $7.0 million.

Goodwill Disclosure [Text Block]

Goodwill

As of September 30, 2022 and December 31, 2021, the carrying amount of our goodwill totaled $159.5 million and $154.2 million, respectively, which is primarily attributable to the Rail Products Group.

Product Warranty Disclosure [Text Block]

Warranties

We provide various express, limited product warranties that generally range from one year to five years depending on the product. The warranty costs are estimated using a two-step approach. First, an engineering estimate is made for the cost of all claims that have been asserted by customers. Second, based on historical claims experience, a cost is accrued for all products still within a warranty period for which no claims have been filed. We provide for the estimated cost of product warranties at the time revenue is recognized related to products covered by warranties and assess the adequacy of the resulting reserves on a quarterly basis. The changes in the accruals for warranties for the three and nine months ended September 30, 2022 and 2021 are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Beginning balance	$	2.7	$	5.5	$	3.1	$	11.3
Warranty costs incurred	(0.4)		(3.4)		(2.5)		(6.2)
Warranty originations and revisions	0.9		1.6		3.1		(1.0)
Warranty expirations	(0.3)		(0.2)		(0.8)		(0.6)
Ending balance	$	2.9	$	3.5	$	2.9	$	3.5

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

ASU 2022-04 – In September 2022, the FASB issued ASU No. 2022-04, "Disclosure of Supplier Finance Program Obligations," which requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose information about the key terms of these programs, outstanding amounts as of the end of the reporting period, a description of where in the financial statements outstanding amounts are presented, and a rollforward of these obligations. ASU 2022-04 is effective for public companies during interim and annual reporting periods beginning after December 15, 2022 and is to be adopted on a retrospective basis, except for the disclosure of rollforward information, which is effective for public companies during interim and annual reporting periods beginning after December 15, 2023 and is to be adopted on a prospective basis. Early adoption is permitted. We plan to adopt ASU 2022-04 effective January 1, 2023 and are currently evaluating the impact these disclosures will have on our Consolidated Financial Statements.

XML

Derivative Instruments and Fair Value Accounting Derivatives (Policies)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivative Instruments

We use derivative instruments to mitigate interest rate risk, including risks associated with the impact of changes in interest rates in anticipation of future debt issuances and to offset interest rate variability of certain floating rate debt issuances outstanding. We also use derivative instruments to mitigate the impact of changes in foreign currency exchange rates. Derivative instruments that are designated and qualify as cash flow hedges are accounted for by recording the effective portion of the gain or loss on the derivative instrument in accumulated other comprehensive income or loss ("AOCI") as a separate component of stockholders' equity. These accumulated gains or losses are reclassified into earnings in the periods during which the hedged transactions affect earnings. We continuously monitor our derivative positions and the credit ratings of our counterparties and do not anticipate losses due to non-performance. See Note 8 for a description of our debt instruments.

Interest Rate Hedges

					Included in accompanying balance sheet at September 30, 2022
							AOCI – loss/(income)
	Notional Amount		Interest Rate (1)		Asset/(Liability)		Controlling Interest		Noncontrolling Interest
	($ in millions)
Expired hedges:
2018 secured railcar equipment notes	$	249.3	4.41	%	$	—	$	0.5	$	—
TRIP Holdings warehouse loan	$	788.5	3.60	%	$	—	$	0.1	$	0.2
Tribute Rail secured railcar equipment notes (2)	$	256.0	2.86	%	$	—	$	0.9	$	1.1
2017 promissory notes – interest rate cap	$	169.3	3.00	%	$	—	$	(0.3)	$	—
Open hedge:
2017 promissory notes – interest rate swap	$	441.4	2.39	%	$	19.6	$	(19.6)	$	—

(1) Weighted average fixed interest rate, except for the interest rate cap on the 2017 promissory notes.

(2) In May 2022, Tribute Rail LLC ("Tribute Rail"), an indirect, wholly-owned subsidiary of TRIP Holdings, entered into and subsequently terminated a forward starting interest rate swap to hedge the risk of potential interest rate increases prior to the May 2022 Tribute Rail debt issuance.

	Effect on interest expense – increase/(decrease)
	Three Months Ended September 30,				Nine Months Ended September 30,				Expected effect during next twelve months
	2022		2021		2022		2021
	(in millions)
Expired hedges:
2018 secured railcar equipment notes	$	—	$	0.1	$	0.1	$	0.2	$	0.2
TRIP Holdings warehouse loan	$	0.3	$	0.4	$	1.0	$	1.4	$	0.3
Triumph Rail secured railcar equipment notes	$	—	$	—	$	—	$	0.1	$	—
Tribute Rail secured railcar equipment notes	$	0.1	$	—	$	0.2	$	—	$	0.7
2017 promissory notes – interest rate cap	$	(0.1)	$	(0.1)	$	(0.1)	$	(0.1)	$	(0.1)
Open hedge (1):
2017 promissory notes – interest rate swap	$	0.3	$	3.1	$	5.3	$	9.3	$	5.6

(1) Based on the fair value of open hedges as of September 30, 2022.

Foreign Currency Hedge

Our exposure related to foreign currency transactions is currently hedged for up to a maximum of twelve months. Information related to our foreign currency hedge is as follows:

		Included in  accompanying balance  sheet at September 30, 2022				Effect on cost of revenues – increase/(decrease)
Notional Amount		Asset/ (Liability)		AOCI – loss/(income)		Three Months Ended September 30,				Nine Months Ended September 30,				Expected effect during next twelve months (1)
						2022		2021		2022		2021
(in millions)
$	40.8	$	1.1	$	(1.6)	$	(0.5)	$	(1.4)	$	(0.7)	$	(7.4)	$	(1.6)

(1) Based on the fair value of open hedges as of September 30, 2022.

XML

Common Stock and Stock-Based Compensation Stockholders Equity (Policies)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Stockholders' Equity, Policy [Policy Text Block]

Stockholders' Equity

In September 2021, our Board of Directors authorized a new share repurchase program effective September 9, 2021 through December 31, 2022. The new share repurchase program authorizes the Company to repurchase up to $250.0 million of its common stock. In December 2021, we entered into an accelerated share repurchase agreement (the "ASR") to repurchase $125.0 million of our common stock. Approximately 3.3 million shares repurchased as part of the ASR on December 31, 2021 were delivered to the Company in January 2022 in accordance with normal settlement practices, representing approximately 80% of the total notional value of the ASR. The ASR was completed in April 2022. Share repurchase activity under the authorized program is as follows:

	Shares Repurchased			Remaining Authorization to Repurchase
Period	Number of Shares	Cost (in millions)		Cost (in millions)
September 9, 2021 Authorization				$	250.0
September 9, 2021 through September 30, 2021	—	$	—	$	250.0
October 1, 2021 through December 31, 2021	5,155,491	151.9		$	98.1
January 1, 2022 through March 31, 2022	—	—		$	98.1
April 1, 2022 through June 30, 2022	1,760,462	50.3		$	47.8	(1)
July 1, 2022 through September 30, 2022	610,000	14.1		$	33.7
Total	7,525,953	$	216.3

(1) Share repurchases during the second quarter of 2022 included 760,602 shares at a cost of $25.0 million representing the final settlement of the ASR, which was funded in December 2021 but a portion of which remained outstanding as of December 31, 2021.

Certain shares of stock repurchased during September 2022, totaling $2.6 million, were cash settled in October 2022 in accordance with normal settlement practices.

During the three and nine months ended September 30, 2021, share repurchases totaled 2.8 million and 14.6 million, respectively, at a cost of approximately $77.1 million and $404.7 million, respectively. Share repurchases during the nine months ended September 30, 2021 included 8.1 million shares, at a cost of approximately $222.5 million, from a privately negotiated transaction with ValueAct Capital Master Fund, L.P ("ValueAct"). The repurchase from ValueAct was approved by our Board of Directors separately from, and did not reduce the authorized amount remaining under, the previous share repurchase program, which was completed in the third quarter of 2021.

Share-based Payment Arrangement [Text Block]

Stock-Based Compensation

Stock-based compensation expense totaled approximately $5.9 million and $16.7 million for the three and nine months ended September 30, 2022, respectively. Stock-based compensation expense totaled approximately $6.0 million and $15.2 million for the three and nine months ended September 30, 2021, respectively. The Company's annual grant of share-based awards generally occurs in the second quarter under our 2004 Fourth Amended and Restated Stock Option and Incentive Plan (the "Plan”). Our stock options have contractual terms of ten years and become exercisable over a three-year period. Expense related to stock options is recognized on a straight-line basis over the vesting period. Expense related to restricted stock units ("RSUs") issued to eligible employees under the Plan is recognized over the vesting period, generally between three years and four years. Beginning in 2020, certain RSU grants provide for full vesting when the award recipients retire having reached 60 years of age and having provided at least ten years of service to the Company, provided that the awards remain outstanding for a period of six months from the date of grant. The expense for these awards is recognized over the applicable service period for each of the eligible award recipients. Expense related to RSUs and restricted stock awards ("RSAs") granted to non-employee directors under the Plan is recognized on a straight-line basis over the vesting period, generally one year. Expense related to performance units is recognized on a straight-line basis from their award date to the end of the performance period, generally three years.

The following table summarizes stock-based compensation awards granted during the nine months ended September 30, 2022:

	Number of Shares Granted	Weighted Average Grant-Date Fair Value per Award
Restricted stock units	630,449	$	25.64
Restricted stock awards	26,339	$	25.43
Performance units	243,084	$	29.89

XML

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Remaining Performance Obligation

Unsatisfied Performance Obligations

The following table includes estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially satisfied as of September 30, 2022 and the percentage of the outstanding performance obligations as of September 30, 2022 expected to be delivered during the remainder of 2022:

	Unsatisfied performance obligations at September 30, 2022
	Total Amount		Percent expected to be delivered in 2022
	(in millions)
Rail Products Group:
New railcars:
External customers (1)	$	3,573.7
Leasing Group	517.2
	$	4,090.9	16.2	%
Sustainable railcar conversions	$	201.4	26.5	%
Railcar Leasing and Management Services Group	$	133.6	6.8	%

(1) Unsatisfied performance obligations at September 30, 2022 include 15,000 railcars expected to be delivered through 2028, valued at approximately $1.8 billion, associated with a new long-term railcar supply agreement with GATX Corporation.

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Future contractual minimum operating lease liabilities will mature as follows (in millions):

	Leasing Group		Non-Leasing Group		Total
Remaining three months of 2022	$	3.2	$	2.1	$	5.3
2023	12.0		7.9		19.9
2024	8.0		6.9		14.9
2025	6.0		6.1		12.1
2026	5.7		5.7		11.4
Thereafter	8.7		57.8		66.5
Total operating lease payments	$	43.6	$	86.5	$	130.1
Less: Present value adjustment					(18.0)
Total operating lease liabilities					$	112.1

Lessor, Payments to be Received, Maturity [Table Text Block]

Future contractual minimum revenues for operating leases will mature as follows (in millions)(1):

Remaining three months of 2022	$	156.7
2023	519.9
2024	406.0
2025	307.4
2026	220.0
Thereafter	369.4
Total	$	1,979.4

(1) Total contractual minimum rental revenues on operating leases relates to our wholly-owned and partially-owned subsidiaries and sub-lease rental revenues associated with the Leasing Group's operating lease obligations.

Future contractual minimum lease receivables for sales-type leases will mature as follows (in millions)(1):

Remaining three months of 2022	$	0.3
2023	1.1
2024	1.1
2025	1.1
2026	1.1
Thereafter	11.2
Total	15.9
Less: Unearned interest income	(5.2)
Net investment in sales-type leases (1)	$	10.7

(1) Included in other assets in our Consolidated Balance Sheets.

Schedule of Product Warranty Liability [Table Text Block]

The changes in the accruals for warranties for the three and nine months ended September 30, 2022 and 2021 are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Beginning balance	$	2.7	$	5.5	$	3.1	$	11.3
Warranty costs incurred	(0.4)		(3.4)		(2.5)		(6.2)
Warranty originations and revisions	0.9		1.6		3.1		(1.0)
Warranty expirations	(0.3)		(0.2)		(0.8)		(0.6)
Ending balance	$	2.9	$	3.5	$	2.9	$	3.5

XML

Discontinued Operations and Disposal Groups (Tables)

9 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

The following is a summary of THP's operating results included in income (loss) from discontinued operations for the three and nine months ended September 30, 2022 and 2021:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Revenues	$	—	$	83.7	$	—	$	230.0
Cost of revenues	—		60.4		—		165.2
Selling, engineering, and administrative expenses	4.4		9.3		17.2		32.5
Income (loss) from discontinued operations before income taxes	(4.4)		14.0		(17.2)		32.3
Provision (benefit) for income taxes	(1.0)		3.2		(3.5)		7.2
Income (loss) from discontinued operations, net of income taxes	$	(3.4)	$	10.8	$	(13.7)	$	25.1

XML

Derivative Instruments and Fair Value Accounting Derivatives and Hedging (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Schedule of Interest Rate Derivatives [Table Text Block]

					Included in accompanying balance sheet at September 30, 2022
							AOCI – loss/(income)
	Notional Amount		Interest Rate (1)		Asset/(Liability)		Controlling Interest		Noncontrolling Interest
	($ in millions)
Expired hedges:
2018 secured railcar equipment notes	$	249.3	4.41	%	$	—	$	0.5	$	—
TRIP Holdings warehouse loan	$	788.5	3.60	%	$	—	$	0.1	$	0.2
Tribute Rail secured railcar equipment notes (2)	$	256.0	2.86	%	$	—	$	0.9	$	1.1
2017 promissory notes – interest rate cap	$	169.3	3.00	%	$	—	$	(0.3)	$	—
Open hedge:
2017 promissory notes – interest rate swap	$	441.4	2.39	%	$	19.6	$	(19.6)	$	—

(1) Weighted average fixed interest rate, except for the interest rate cap on the 2017 promissory notes.

(2) In May 2022, Tribute Rail LLC ("Tribute Rail"), an indirect, wholly-owned subsidiary of TRIP Holdings, entered into and subsequently terminated a forward starting interest rate swap to hedge the risk of potential interest rate increases prior to the May 2022 Tribute Rail debt issuance.

Derivative Instruments, Gain (Loss)

	Effect on interest expense – increase/(decrease)
	Three Months Ended September 30,				Nine Months Ended September 30,				Expected effect during next twelve months
	2022		2021		2022		2021
	(in millions)
Expired hedges:
2018 secured railcar equipment notes	$	—	$	0.1	$	0.1	$	0.2	$	0.2
TRIP Holdings warehouse loan	$	0.3	$	0.4	$	1.0	$	1.4	$	0.3
Triumph Rail secured railcar equipment notes	$	—	$	—	$	—	$	0.1	$	—
Tribute Rail secured railcar equipment notes	$	0.1	$	—	$	0.2	$	—	$	0.7
2017 promissory notes – interest rate cap	$	(0.1)	$	(0.1)	$	(0.1)	$	(0.1)	$	(0.1)
Open hedge (1):
2017 promissory notes – interest rate swap	$	0.3	$	3.1	$	5.3	$	9.3	$	5.6

(1) Based on the fair value of open hedges as of September 30, 2022.

Foreign Currency Hedge

Our exposure related to foreign currency transactions is currently hedged for up to a maximum of twelve months. Information related to our foreign currency hedge is as follows:

		Included in  accompanying balance  sheet at September 30, 2022				Effect on cost of revenues – increase/(decrease)
Notional Amount		Asset/ (Liability)		AOCI – loss/(income)		Three Months Ended September 30,				Nine Months Ended September 30,				Expected effect during next twelve months (1)
						2022		2021		2022		2021
(in millions)
$	40.8	$	1.1	$	(1.6)	$	(0.5)	$	(1.4)	$	(0.7)	$	(7.4)	$	(1.6)

(1) Based on the fair value of open hedges as of September 30, 2022.

Level 1

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The assets measured as Level 1 in the fair value hierarchy are summarized below:

	Level 1
	September 30, 2022		December 31, 2021
	(in millions)
Assets:
Cash equivalents	$	34.7	$	11.4
Restricted cash	180.2		135.1
Total assets	$	214.9	$	146.5

Level 2

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The assets and liabilities measured as Level 2 in the fair value hierarchy are summarized below:

	Level 2
	September 30, 2022		December 31, 2021
	(in millions)
Assets:
Interest rate hedge (1)	$	19.6	$	—
Foreign currency hedge (1)	1.1		—
Total assets	$	20.7	$	—
Liabilities:
Interest rate hedge (2)	$	—	$	21.0
Foreign currency hedge (2)	—		0.1
Total liabilities	$	—	$	21.1

(1) Included in other assets in our Consolidated Balance Sheets.

(2) Included in accrued liabilities in our Consolidated Balance Sheets.

XML

Segment Information (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The financial information for these segments is shown in the tables below (in millions). We operate principally in North America.

	Three Months Ended September 30, 2022
	Railcar Leasing and Management Services Group		Rail Products Group		Eliminations – Lease Subsidiary		Eliminations – Other		Consolidated Total
External revenue	$	194.6	$	302.0	$	—	$	—	$	496.6
Intersegment revenue	0.2		295.3		(295.3)		(0.2)		—
Total revenues	$	194.8	$	597.3	$	(295.3)	$	(0.2)	$	496.6

	Three Months Ended September 30, 2021
	Railcar Leasing and Management Services Group		Rail Products Group		Eliminations – Lease Subsidiary		Eliminations – Other		Consolidated Total
External revenue	$	185.3	$	234.5	$	—	$	—	$	419.8
Intersegment revenue	0.2		105.4		(105.3)		(0.3)		—
Total revenues	$	185.5	$	339.9	$	(105.3)	$	(0.3)	$	419.8

	Nine Months Ended September 30, 2022
	Railcar Leasing and Management Services Group		Rail Products Group		Eliminations – Lease Subsidiary		Eliminations – Other		Consolidated Total
External revenue	$	572.6	$	813.5	$	—	$	—	$	1,386.1
Intersegment revenue	0.6		605.5		(605.5)		(0.6)		—
Total revenues	$	573.2	$	1,419.0	$	(605.5)	$	(0.6)	$	1,386.1

	Nine Months Ended September 30, 2021
	Railcar Leasing and Management Services Group		Rail Products Group		Eliminations – Lease Subsidiary		Eliminations – Other		Consolidated Total
External revenue	$	553.6	$	490.2	$	—	$	—	$	1,043.8
Intersegment revenue	0.5		372.5		(367.6)		(5.4)		—
Total revenues	$	554.1	$	862.7	$	(367.6)	$	(5.4)	$	1,043.8

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

The reconciliation of segment operating profit to consolidated net income is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Operating profit:
Railcar Leasing and Management Services Group	$	107.9	$	109.3	$	293.2	$	268.7
Rail Products Group	26.0		(3.1)		40.5		(8.7)
Segment Totals	133.9		106.2		333.7		260.0
Corporate and other	(21.4)		(23.1)		(62.2)		(63.1)
Restructuring activities, net	—		0.1		(1.0)		1.1
Eliminations – Lease Subsidiary	(19.6)		(4.5)		(48.7)		(9.3)
Eliminations – Other	(0.2)		(0.4)		(1.3)		(1.1)
Consolidated operating profit	92.7		78.3		220.5		187.6
Other (income) expense	54.4		44.5		147.0		160.5
Provision (benefit) for income taxes	8.6		8.3		17.4		9.4
Income (loss) from discontinued operations, net of income taxes	(3.4)		10.4		(13.7)		24.3
Loss on sale of discontinued operations, net of income taxes	—		—		(5.7)		—
Net income	$	26.3	$	35.9	$	36.7	$	42.0

XML

Railcar Leasing and Management Services Group (Tables)

9 Months Ended

Sep. 30, 2022

Sale Leaseback Transaction [Line Items]

Selected consolidating financial information for the Leasing Group

Selected consolidated financial information for the Leasing Group is as follows:

	September 30, 2022
	Wholly- Owned Subsidiaries		Partially-Owned Subsidiaries		Total Leasing Group		Eliminations – Lease Subsidiary(1)		Adjusted Total Leasing Group
	(in millions)
Cash and cash equivalents	$	4.4	$	—	$	4.4	$	—	$	4.4
Accounts receivable	97.3		12.3		109.6		—		109.6
Property, plant, and equipment, net	5,793.1		1,533.5		7,326.6		(774.4)		6,552.2
Restricted cash	117.1		63.1		180.2		—		180.2
Other assets	132.6		1.9		134.5		—		134.5
Total assets	$	6,144.5	$	1,610.8	$	7,755.3	$	(774.4)	$	6,980.9
Accounts payable and accrued liabilities	$	114.9	$	42.9	$	157.8	$	—	$	157.8
Debt, net	3,844.5		1,190.2		5,034.7		—		5,034.7
Deferred income taxes	1,147.0		0.9		1,147.9		(177.6)		970.3
Other liabilities	41.7		—		41.7		—		41.7
Total liabilities	5,148.1		1,234.0		6,382.1		(177.6)		6,204.5
Noncontrolling interest	—		255.2		255.2		—		255.2
Total Equity	$	996.4	$	121.6	$	1,118.0	$	(596.8)	$	521.2

	December 31, 2021
	Wholly- Owned Subsidiaries		Partially-Owned Subsidiaries		Total Leasing Group		Eliminations – Lease Subsidiary(1)		Adjusted Total Leasing Group
	(in millions)
Cash and cash equivalents	$	3.4	$	—	$	3.4	$	—	$	3.4
Accounts receivable	90.7		10.1		100.8		—		100.8
Property, plant, and equipment, net	5,706.1		1,570.6		7,276.7		(779.1)		6,497.6
Restricted cash	76.5		58.6		135.1		—		135.1
Other assets	67.3		2.1		69.4		—		69.4
Total assets	$	5,944.0	$	1,641.4	$	7,585.4	$	(779.1)	$	6,806.3
Accounts payable and accrued liabilities	$	113.4	$	30.1	$	143.5	$	—	$	143.5
Debt, net	3,555.8		1,216.1		4,771.9		—		4,771.9
Deferred income taxes	1,114.2		1.1		1,115.3		(176.6)		938.7
Other liabilities	35.6		—		35.6		—		35.6
Total liabilities	4,819.0		1,247.3		6,066.3		(176.6)		5,889.7
Noncontrolling interest	—		267.0		267.0		—		267.0
Total Equity	$	1,125.0	$	127.1	$	1,252.1	$	(602.5)	$	649.6

(1) Net deferred profit on railcars sold to the Leasing Group consists of intersegment profit that is eliminated in consolidation. Net deferred profit and the related deferred tax impact are included as adjustments to the property, plant, and equipment, net and deferred income taxes line items, respectively, in the Eliminations – Lease Subsidiary column above to reflect the net book value of the railcars purchased by the Leasing Group from the Rail Products Group based on manufacturing cost. See Note 5 and Note 8 for a further discussion regarding our investment in our partially-owned leasing subsidiaries and the related indebtedness.

Selected consolidating income statement information for the Leasing Group

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022			2021			Percent		2022			2021			Percent
	($ in millions)						Change		($ in millions)						Change
Revenues:
Leasing and management	$	194.8		$	185.5		5.0	%	$	573.2		$	554.1		3.4	%
Operating profit (1):
Leasing and management	$	73.6		$	76.4		(3.7)	%	$	220.2		$	223.0		(1.3)	%
Lease portfolio sales (2)	34.3			32.9			*		73.0			45.7			*
Total operating profit	$	107.9		$	109.3		(1.3)	%	$	293.2		$	268.7		9.1	%
Total operating profit margin	55.4		%	58.9		%			51.2		%	48.5		%
Leasing and management operating profit margin	37.8		%	41.2		%			38.4		%	40.2		%
Selected expense information:
Depreciation (3)	$	59.1		$	58.7		0.7	%	$	175.7		$	170.5		3.0	%
Maintenance and compliance	$	28.2		$	22.8		23.7	%	$	84.7		$	73.7		14.9	%
Rent and ad valorem taxes	$	5.2		$	5.0		4.0	%	$	15.5		$	14.3		8.4	%
Selling, engineering, and administrative expenses	$	14.2		$	11.6		22.4	%	$	39.6		$	36.1		9.7	%
Interest (4)	$	49.2		$	39.9		23.3	%	$	133.9		$	142.6		(6.1)	%

* Not meaningful

(1) Operating profit includes: depreciation; fleet operating costs, which include maintenance, compliance, freight, and storage; rent and ad valorem taxes; and selling, engineering, and administrative expenses. Amortization of deferred profit on railcars sold from the Rail Products Group to the Leasing Group is included in the operating profit of the Leasing Group, resulting in the recognition of depreciation expense based on our original manufacturing cost of the railcars. Interest expense is not a component of operating profit and includes the effect of hedges.

(2) Includes $1.3 million selling profit associated with sales-type leases for the nine months ended September 30, 2022.

(3) Depreciation expense includes $2.4 million and $8.5 million for the three and nine months ended September 30, 2022, respectively, related to the disposal of certain railcar components associated with our sustainable railcar conversion program. For the three and nine months ended September 30, 2021, depreciation expense includes $4.7 million and $7.3 million, respectively, related to our sustainable railcar conversion program.

(4) Interest expense for the nine months ended September 30, 2022 includes $1.5 million of loss on extinguishment of debt associated with the repayment of TRIP Railcar Co.'s outstanding term loan agreement. Interest expense for the nine months ended September 30, 2021 includes $11.7 million of loss on extinguishment of debt associated with the refinancing of our partially-owned subsidiaries' debt.

Schedule of proceeds from leased railcars

Information related to lease portfolio sales is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	($ in millions)
Lease portfolio sales	$	299.6		$	322.1		$	514.8		$	410.9
Operating profit on lease portfolio sales (1)	$	34.3		$	32.9		$	71.7		$	45.7
Operating profit margin on lease portfolio sales	11.4		%	10.2		%	13.9		%	11.1		%

(1) Excludes $1.3 million selling profit associated with sales-type leases for the nine months ended September 30, 2022.

Future contractual minimum rental revenues on leases

Future contractual minimum rental revenues on operating leases related to our wholly-owned and partially-owned subsidiaries are as follows:

	Remaining three months of 2022		2023		2024		2025		2026		Thereafter		Total
	(in millions)
Future contractual minimum rental revenues	$	154.2	$	512.2	$	402.2	$	304.8	$	218.1	$	368.9	$	1,960.4

Operating leases

Sale Leaseback Transaction [Line Items]

Future operating lease obligations and future contractual minimum rental revenues

Future amounts due as well as future contractual minimum rental revenues related to the Leasing Group's railcar operating lease obligations are as follows:

	Remaining three months of 2022		2023		2024		2025		2026		Thereafter		Total
	(in millions)
Future operating lease obligations	$	3.2	$	11.9	$	7.9	$	6.0	$	5.7	$	8.7	$	43.4
Future contractual minimum rental revenues	$	2.5	$	7.7	$	3.8	$	2.6	$	1.9	$	0.5	$	19.0

XML

Property, Plant, and Equipment (Tables)

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

The following table summarizes the components of property, plant, and equipment:

	September 30, 2022		December 31, 2021
	(in millions)
Manufacturing/Corporate:
Land	$	15.8	$	17.4
Buildings and improvements	385.0		377.4
Machinery and other	406.0		415.1
Construction in progress	15.9		18.1
	822.7		828.0
Less: accumulated depreciation	(481.1)		(478.7)
	341.6		349.3
Leasing:
Wholly-owned subsidiaries:
Machinery and other	21.6		20.7
Equipment on lease	7,223.5		7,061.3
	7,245.1		7,082.0
Less: accumulated depreciation	(1,452.0)		(1,375.9)
	5,793.1		5,706.1
Partially-owned subsidiaries:
Equipment on lease	2,234.5		2,242.9
Less: accumulated depreciation	(701.0)		(672.3)
	1,533.5		1,570.6
Deferred profit on railcars sold to the Leasing Group	(1,057.5)		(1,047.3)
Less: accumulated amortization	283.1		268.2
	(774.4)		(779.1)
	$	6,893.8	$	6,846.9

XML

Debt (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Components of debt

The carrying amounts of our debt are as follows:

	September 30, 2022		December 31, 2021
	(in millions)
Corporate – Recourse:
Revolving credit facility	$	60.0	$	—
Senior notes, net of unamortized discount of $0.1 and $0.1	399.9		399.9
	459.9		399.9
Less: unamortized debt issuance costs	(0.9)		(1.2)
Total recourse debt	459.0		398.7
Leasing – Non-recourse:
Wholly-owned subsidiaries:
Secured railcar equipment notes, net of unamortized discount of $0.4 and $0.5	2,412.3		2,257.5
2017 promissory notes, net of unamortized discount of $6.2 and $7.8	726.6		760.2
TILC warehouse facility	728.2		561.8
	3,867.1		3,579.5
Less: unamortized debt issuance costs	(22.6)		(23.7)
	3,844.5		3,555.8
Partially-owned subsidiaries:
Secured railcar equipment notes, net of unamortized discount of $0.4 and $0.3	1,200.7		903.5
TRIP Railcar Co. term loan	—		323.7
	1,200.7		1,227.2
Less: unamortized debt issuance costs	(10.5)		(11.1)
	1,190.2		1,216.1
Total non–recourse debt	5,034.7		4,771.9
Total debt	$	5,493.7	$	5,170.6

The estimated fair values of our debt are as follows:

	September 30, 2022		December 31, 2021
	(in millions)
Level 1	$	1,514.8	$	1,645.7
Level 2	381.5		420.8
Level 3	3,284.8		3,215.4
	$	5,181.1	$	5,281.9

XML

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Changes in AOCI for the nine months ended September 30, 2022 are as follows:

	Currency translation adjustments		Unrealized gains/(losses) on derivative financial instruments		Net actuarial gains/(losses) of defined benefit plans		Accumulated other comprehensive income (loss)
	(in millions)
Balances at December 31, 2021	$	(1.3)	$	(12.2)	$	(3.5)	$	(17.0)
Other comprehensive income, net of tax, before reclassifications	—		26.8		—		26.8
Amounts reclassified from AOCI, net of tax benefit of $—, $1.2, $—, and $1.2	—		4.6		0.2		4.8
Amounts reclassified to discontinued operations, net of tax	1.3		—		—		1.3
Less: noncontrolling interest	—		0.5		—		0.5
Other comprehensive income	1.3		31.9		0.2		33.4
Balances at September 30, 2022	$	—	$	19.7	$	(3.3)	$	16.4

XML

Common Stock and Stock-Based Compensation Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2022

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share Repurchases [Table Text Block]

Share repurchase activity under the authorized program is as follows:

	Shares Repurchased			Remaining Authorization to Repurchase
Period	Number of Shares	Cost (in millions)		Cost (in millions)
September 9, 2021 Authorization				$	250.0
September 9, 2021 through September 30, 2021	—	$	—	$	250.0
October 1, 2021 through December 31, 2021	5,155,491	151.9		$	98.1
January 1, 2022 through March 31, 2022	—	—		$	98.1
April 1, 2022 through June 30, 2022	1,760,462	50.3		$	47.8	(1)
July 1, 2022 through September 30, 2022	610,000	14.1		$	33.7
Total	7,525,953	$	216.3

(1) Share repurchases during the second quarter of 2022 included 760,602 shares at a cost of $25.0 million representing the final settlement of the ASR, which was funded in December 2021 but a portion of which remained outstanding as of December 31, 2021.

Share-based Payment Arrangement, Activity [Table Text Block]

The following table summarizes stock-based compensation awards granted during the nine months ended September 30, 2022:

	Number of Shares Granted	Weighted Average Grant-Date Fair Value per Award
Restricted stock units	630,449	$	25.64
Restricted stock awards	26,339	$	25.43
Performance units	243,084	$	29.89

XML

Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Computation of basic and diluted net income attributable to Trinity Industries, Inc.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions, except per share amounts)
Income from continuing operations	$	29.7	$	25.5	$	56.1	$	17.7
Less: Net (income) loss attributable to noncontrolling interest	(0.5)		(3.9)		(7.9)		6.0
Net income from continuing operations attributable to Trinity Industries, Inc.	29.2		21.6		48.2		23.7
Income (loss) from discontinued operations, net of income taxes	(3.4)		10.4		(13.7)		24.3
Loss on sale of discontinued operations, net of income taxes	—		—		(5.7)		—
Net income (loss) from discontinued operations attributable to Trinity Industries, Inc.	(3.4)		10.4		(19.4)		24.3
Net income attributable to Trinity Industries, Inc.	$	25.8	$	32.0	$	28.8	$	48.0
Basic weighted average shares outstanding	81.7		97.7		82.3		103.4
Effect of dilutive securities	1.6		1.8		2.1		2.3
Diluted weighted average shares outstanding	83.3		99.5		84.4		105.7
Basic earnings per common share:
Income from continuing operations	$	0.36	$	0.22	$	0.59	$	0.23
Income (loss) from discontinued operations	(0.04)		0.11		(0.24)		0.23
Basic net income attributable to Trinity Industries, Inc.	$	0.32	$	0.33	$	0.35	$	0.46
Diluted earnings per common share:
Income from continuing operations	$	0.35	$	0.22	$	0.57	$	0.22
Income (loss) from discontinued operations	(0.04)		0.11		(0.23)		0.23
Diluted net income attributable to Trinity Industries, Inc.	$	0.31	$	0.33	$	0.34	$	0.45
Potentially dilutive securities excluded from EPS calculation:
Antidilutive restricted shares	0.3		0.1		0.1		0.1
Antidilutive stock options	—		—		—		—

XML

Summary of Significant Accounting Policies Discontinued Operations (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($)
Accounting Policies [Abstract]
Proceeds from Divestiture of Businesses	$ 375.0

XML

Summary of Significant Accounting Policies Revenue Recognition and Remaining performance obligation (Details) - USD ($) $ in Millions		Sep. 30, 2022	Dec. 31, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Billed Contracts Receivable		$ 3.0	$ 4.5
Rail Products Group [Member] | Rail Products [Domain]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount		$ 4,090.9
Revenue, remaining performance obligation expected to be delivered in current year		16.20%
Rail Products Group [Member] | Rail Products [Domain] | External Customers
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	[1]	$ 3,573.7
Rail Products Group [Member] | Rail Products [Domain] | Leasing
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount		517.2
Rail Products Group [Member] | Rail Products [Domain] | GATX
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	[1]	1,800.0
Rail Products Group [Member] | Sustainable Railcar Conversions
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount		$ 201.4
Revenue, remaining performance obligation expected to be delivered in current year		26.50%
Railcar Leasing and Management Services Group [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount		$ 133.6
Revenue, remaining performance obligation expected to be delivered in current year		6.80%

[1] Unsatisfied performance obligations at September 30, 2022 include 15,000 railcars expected to be delivered through 2028, valued at approximately $1.8 billion, associated with a new long-term railcar supply agreement with GATX Corporation.

XML

Summary of Significant Accounting Policies Lessee Accounting (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Renewal Term		5 years		5 years
Lessee, Operating Lease, Option to Terminate				one year
Finance Lease, Principal Payments				$ 0.0
Operating lease expense		$ 4.6	$ 4.0	13.5	$ 11.3
Short-term lease expense		0.1	$ 0.0	0.3	0.2
Cash flows from operating activities				13.5	11.3
Right-of-use assets recognized in exchange for new lease liabilities				21.0	$ 23.7
Right-of-use assets (1)	[1]	89.9		89.9		$ 82.8
Lease liabilities (2)	[2]	$ 112.1		$ 112.1		$ 106.3
Weighted average remaining lease term		10 years		10 years		10 years 9 months 18 days
Weighted average discount rate		2.80%		2.80%		3.00%
Remaining three months of 2022		$ 5.3		$ 5.3
2023		19.9		19.9
2024		14.9		14.9
2025		12.1		12.1
2026		11.4		11.4
Thereafter		66.5		66.5
Lessee, Operating Lease, Liability, to be Paid, Total		130.1		130.1
Less: Present value adjustment		$ (18.0)		$ (18.0)
Minimum
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract		1 year		1 year
Maximum
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract		15 years		15 years
Railcar Leasing and Management Services Group [Member]
Lessee, Lease, Description [Line Items]
Remaining three months of 2022		$ 3.2		$ 3.2
2023		12.0		12.0
2024		8.0		8.0
2025		6.0		6.0
2026		5.7		5.7
Thereafter		8.7		8.7
Lessee, Operating Lease, Liability, to be Paid, Total		43.6		43.6
Consolidated Subsidiaries, Excluding Leasing [Member]
Lessee, Lease, Description [Line Items]
Remaining three months of 2022		2.1		2.1
2023		7.9		7.9
2024		6.9		6.9
2025		6.1		6.1
2026		5.7		5.7
Thereafter		57.8		57.8
Lessee, Operating Lease, Liability, to be Paid, Total		$ 86.5		$ 86.5

[1] Included in other assets in our Consolidated Balance Sheets.

[2] Included in other liabilities in our Consolidated Balance Sheets.

XML

Summary of Significant Accounting Policies Lessor Accounting (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022		Sep. 30, 2021
Lessor, Lease, Description [Line Items]
Lessor, Operating Lease, Renewal Term		5 years		5 years
Direct Financing Lease, Revenue		$ 0.0		$ 0.0
Operating lease revenues		167.2	$ 158.2	500.5		$ 486.2
Variable operating lease revenues		17.7	18.8	49.0		44.7
Interest income on sales-type lease receivables		0.2	0.0	0.5		0.0
Profit recognized at sales-type lease commencement (1)		0.0	$ 0.0	1.3	[1]	$ 0.0
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Remainder of Fiscal Year		0.3		0.3
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Two		1.1		1.1
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Three		1.1		1.1
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Four		1.1		1.1
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Five		1.1		1.1
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, after Year Five		11.2		11.2
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received		15.9		15.9
Less: Unearned interest income		(5.2)		(5.2)
Net investment in sales-type leases (1)	[2]	10.7		10.7
Railcar Leasing and Management Services Group [Member]
Lessor, Lease, Description [Line Items]
Remaining three months of 2022	[3]	156.7		156.7
2023	[3]	519.9		519.9
2024	[3]	406.0		406.0
2025	[3]	307.4		307.4
2026	[3]	220.0		220.0
Thereafter	[3]	369.4		369.4
Total	[3]	$ 1,979.4		$ 1,979.4
Minimum | Railcar Leasing and Management Services Group [Member]
Lessor, Lease, Description [Line Items]
Lessor, Operating Lease, Term of Contract		1 year		1 year
Maximum | Railcar Leasing and Management Services Group [Member]
Lessor, Lease, Description [Line Items]
Lessor, Operating Lease, Term of Contract		10 years		10 years

[1] Included in gains on dispositions of property – lease portfolio sales on our Consolidated Statements of Operations.

[2] Included in other assets in our Consolidated Balance Sheets.

[3] Total contractual minimum rental revenues on operating leases relates to our wholly-owned and partially-owned subsidiaries and sub-lease rental revenues associated with the Leasing Group's operating lease obligations.

XML

Summary of Significant Accounting Policies Receivables (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Credit Loss [Abstract]
Accounts Receivable, Credit Loss Expense (Reversal)	$ 1.7
Allowance for Loan and Lease Losses, Write-offs	1.9
Accounts Receivable, Allowance for Credit Loss	$ 10.3	$ 10.5

XML

Summary of Significant Accounting Policies Goodwill (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Asset Acquisition, Consideration Transferred	$ 132.1
Payments to Acquire Productive Assets	125.0
Asset Acquisition, Consideration Transferred, Other Assets	7.8
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	5.2
Goodwill, Acquired During Period	5.3	$ 7.0
Goodwill	$ 159.5		$ 154.2

XML

Summary of Significant Accounting Policies Warranties (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Product Warranty Liability [Line Items]
Standard Product Warranty Accrual	$ 2.9	$ 3.5	$ 2.9	$ 3.5	$ 2.7	$ 3.1	$ 5.5	$ 11.3
Warranty costs incurred	(0.4)	(3.4)	(2.5)	(6.2)
Warranty originations and revisions	0.9	1.6	3.1	(1.0)
Warranty expirations	$ (0.3)	$ (0.2)	$ (0.8)	$ (0.6)
Minimum
Product Warranty Liability [Line Items]
Product Warranty Period			1 year
Maximum
Product Warranty Liability [Line Items]
Product Warranty Period			5 years

XML

Discontinued Operations and Disposal Groups (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss on sale of discontinued operations, net of benefit for income taxes of $—, $—, $1.4, and $—	$ 0.0	$ 0.0	$ (5.7)	$ 0.0
Discontinued Operation, Tax Effect of Discontinued Operation	(1.0)	3.6	(3.5)	8.0
(Income) loss from discontinued operations, net of income taxes			(13.7)	24.3
Proceeds from Sale of Discontinued Operations, Net of Cash Divested
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash Provided by (Used in) Investing Activities, Discontinued Operations			2.7	0.0
Sale of Highway Products
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax			(5.8)
Loss on sale of discontinued operations, net of benefit for income taxes of $—, $—, $1.4, and $—			(4.4)
Disposal Group, Including Discontinued Operation, Revenue	0.0	83.7	0.0	230.0
Disposal Group, Including Discontinued Operation, Costs of Goods Sold	0.0	60.4	0.0	165.2
Disposal Group, Including Discontinued Operation, General and Administrative Expense	4.4	9.3	17.2	32.5
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	(4.4)	14.0	(17.2)	32.3
Discontinued Operation, Tax Effect of Discontinued Operation	(1.0)	3.2	(3.5)	7.2
(Income) loss from discontinued operations, net of income taxes	$ (3.4)	10.8	(13.7)	25.1
Sale of Highway Products | Proceeds from Sale of Discontinued Operations, Net of Cash Divested
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash Provided by (Used in) Investing Activities, Discontinued Operations			$ 2.7		$ (364.7)
Spin-off of Arcosa
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
(Income) loss from discontinued operations, net of income taxes		$ (0.4)		$ (0.8)

XML

Derivative Instruments and Fair Value Accounting Derivative Instruments (Details) - USD ($) $ in Millions		Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Derivative [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ 1,261.1	$ 1,256.2	$ 1,295.6	$ 1,296.8	$ 1,596.4	$ 1,657.9	$ 1,967.9	$ 2,016.0
Designated as Hedging Instrument [Member] | Interest Rate Swap, Expired, 2018 Secured Railcar Equipment Notes [Member]
Derivative [Line Items]
Derivative, Notional Amount		$ 249.3
Derivative, Average Fixed Interest Rate	[1]	4.41%
Derivative Liability		$ 0.0
Designated as Hedging Instrument [Member] | Interest Rate Swap, Expired, TRIP Holdings Warehouse Loan [Member]
Derivative [Line Items]
Derivative, Notional Amount		$ 788.5
Derivative, Average Fixed Interest Rate	[1]	3.60%
Derivative Liability		$ 0.0
Designated as Hedging Instrument [Member] | Interest Rate Cap [Member]
Derivative [Line Items]
Derivative, Notional Amount		$ 169.3
Derivative, Cap Interest Rate		3.00%
Derivative Liability		$ 0.0
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Derivative, Notional Amount		$ 441.4
Derivative, Average Fixed Interest Rate	[1]	2.39%
Derivative Asset		$ (19.6)
Designated as Hedging Instrument [Member] | Interest Rate Swap, Expired, Tribute Rail
Derivative [Line Items]
Derivative, Notional Amount	[2]	$ 256.0
Derivative, Average Fixed Interest Rate	[1],[2]	2.86%
Derivative Liability	[2]	$ 0.0
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap, Expired, 2018 Secured Railcar Equipment Notes [Member]
Derivative [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		0.5
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap, Expired, TRIP Holdings Warehouse Loan [Member]
Derivative [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		0.1
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Designated as Hedging Instrument [Member] | Interest Rate Cap [Member]
Derivative [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		(0.3)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		(19.6)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap, Expired, Tribute Rail
Derivative [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	[2]	0.9
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Noncontrolling Interest [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap, Expired, 2018 Secured Railcar Equipment Notes [Member]
Derivative [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		0.0
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Noncontrolling Interest [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap, Expired, TRIP Holdings Warehouse Loan [Member]
Derivative [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		0.2
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Noncontrolling Interest [Member] | Designated as Hedging Instrument [Member] | Interest Rate Cap [Member]
Derivative [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		0.0
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Noncontrolling Interest [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		0.0
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Noncontrolling Interest [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap, Expired, Tribute Rail
Derivative [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	[2]	$ 1.1

[1] Weighted average fixed interest rate, except for the interest rate cap on the 2017 promissory notes

[2] In May 2022, Tribute Rail LLC ("Tribute Rail"), an indirect, wholly-owned subsidiary of TRIP Holdings, entered into and subsequently terminated a forward starting interest rate swap to hedge the risk of potential interest rate increases prior to the May 2022 Tribute Rail debt issuance.

XML

Derivative Instruments and Fair Value Accounting Derivative Effect on Interest (Details) - Interest Expense [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest Rate Swap, Expired, 2018 Secured Railcar Equipment Notes [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]		Interest Income (Expense), Net	Interest Income (Expense), Net	Interest Income (Expense), Net	Interest Income (Expense), Net
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net		$ 0.2		$ 0.2
Interest Rate Swap, Expired, TRIP Holdings Warehouse Loan [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]		Interest Income (Expense), Net	Interest Income (Expense), Net	Interest Income (Expense), Net	Interest Income (Expense), Net
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net		$ 0.3		$ 0.3
Interest Rate Cap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]		Interest Income (Expense), Net	Interest Income (Expense), Net	Interest Income (Expense), Net	Interest Income (Expense), Net
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net		$ (0.1)		$ (0.1)
Interest Rate Swap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]		Interest Income (Expense), Net	Interest Income (Expense), Net	Interest Income (Expense), Net	Interest Income (Expense), Net
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net	[1]	$ 5.6		$ 5.6
Interest Rate Swap, Expired, TRIP Master Funding Secured Railcar Equipment Notes [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]		Interest Income (Expense), Net	Interest Income (Expense), Net	Interest Income (Expense), Net	Interest Income (Expense), Net
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net		$ 0.0		$ 0.0
Interest Rate Swap, Expired, Tribute Rail Secured Railcar Equipment Notes
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]		Interest Income (Expense), Net	Interest Income (Expense), Net	Interest Income (Expense), Net	Interest Income (Expense), Net
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net		$ 0.7		$ 0.7

[1] Based on the fair value of open hedges as of September 30, 2022.

XML

Derivative Instruments and Fair Value Accounting FX Hedge (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Foreign Currency Fair Value Hedge Derivative [Line Items]
Total stockholders' equity		$ 1,261.1	$ 1,596.4	$ 1,261.1	$ 1,596.4	$ 1,256.2	$ 1,295.6	$ 1,296.8	$ 1,657.9	$ 1,967.9	$ 2,016.0
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative, Notional Amount		40.8		40.8
Derivative Asset		1.1		1.1
Foreign Exchange Contract [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Designated as Hedging Instrument [Member]
Foreign Currency Fair Value Hedge Derivative [Line Items]
Total stockholders' equity		$ (1.6)		$ (1.6)
Foreign Exchange Contract [Member] | Interest Expense [Member] | Designated as Hedging Instrument [Member]
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]		Cost of Goods and Services Sold	Cost of Goods and Services Sold	Cost of Goods and Services Sold	Cost of Goods and Services Sold
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net	[1]	$ (1.6)		$ (1.6)

[1] Based on the fair value of open hedges as of September 30, 2022.

XML

Derivative Instruments and Fair Value Accounting - Assets and liabilities Measured at fair value on recurring basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Millions		Sep. 30, 2022	Dec. 31, 2021
Level 1
Assets:
Cash equivalents		$ 34.7	$ 11.4
Restricted cash		180.2	135.1
Total assets		214.9	146.5
Level 2 | Other Assets [Member]
Assets:
Foreign currency hedge (1)	[1]	1.1	0.0
Total assets		20.7	0.0
Level 2 | Accrued Liabilities [Member]
Liabilities [Abstract]
Foreign currency hedge (2)	[2]	0.0	0.1
Total liabilities		0.0	21.1
Level 3
Assets:
Total assets		0.0	0.0
Interest Rate Swap [Member] | Level 2 | Other Assets [Member]
Assets:
Interest rate hedge (1)	[1]	19.6	0.0
Interest Rate Swap [Member] | Level 2 | Accrued Liabilities [Member]
Liabilities [Abstract]
Interest rate hedge (2)	[2]	$ 0.0	$ 21.0

[1] Included in other assets in our Consolidated Balance Sheets.

[2] Included in accrued liabilities in our Consolidated Balance Sheets.

XML

Segment Information - Financial information for segments (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
External Revenue	$ 496.6			$ 419.8			$ 1,386.1	$ 1,043.8
Revenues, Total	496.6			419.8			1,386.1	1,043.8
Operating Profit (Loss)	92.7			78.3			220.5	187.6
Restructuring activities, net	0.0			0.1			(1.0)	1.1
Other (income) expense	54.4			44.5			147.0	160.5
Provision (benefit) for income taxes	8.6			8.3			17.4	9.4
Income (loss) from discontinued operations, net of provision (benefit) for income taxes of $(1.0), $3.6, $(3.5), and $8.0	(3.4)			10.4			(13.7)	24.3
Loss on sale of discontinued operations, net of benefit for income taxes of $—, $—, $1.4, and $—	0.0			0.0			(5.7)	0.0
Net income	26.3	$ 8.5	$ 1.9	35.9	$ 4.8	$ 1.3	36.7	42.0
Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues, Total	496.6			419.8			1,386.1	1,043.8
Operating Profit (Loss)	133.9			106.2			333.7	260.0
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Intersegment Revenues							0.0	0.0
Intersegment Eliminations [Member] | Consolidated Subsidiaries, Leasing [Member]
Segment Reporting Information [Line Items]
External Revenue							0.0	0.0
Intersegment Revenues	(295.3)			(105.3)			(605.5)	(367.6)
Revenues, Total	(295.3)			(105.3)			(605.5)	(367.6)
Operating Profit (Loss)	(19.6)			(4.5)			(48.7)	(9.3)
Intersegment Eliminations [Member] | Consolidated Subsidiaries, Excluding Leasing [Member]
Segment Reporting Information [Line Items]
External Revenue							0.0	0.0
Intersegment Revenues	(0.2)			(0.3)			(0.6)	(5.4)
Revenues, Total	(0.2)			(0.3)			(0.6)	(5.4)
Operating Profit (Loss)	(0.2)			(0.4)			(1.3)	(1.1)
Railcar Leasing and Management Services Group [Member]
Segment Reporting Information [Line Items]
External Revenue	194.6			185.3			572.6	553.6
Railcar Leasing and Management Services Group [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues, Total	194.8			185.5			573.2	554.1
Operating Profit (Loss)	107.9			109.3			293.2	268.7
Railcar Leasing and Management Services Group [Member] | Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Intersegment Revenues	0.2			0.2			0.6	0.5
Rail Products Group [Member]
Segment Reporting Information [Line Items]
External Revenue	302.0			234.5			813.5	490.2
Rail Products Group [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues, Total	597.3			339.9			1,419.0	862.7
Operating Profit (Loss)	26.0			(3.1)			40.5	(8.7)
Rail Products Group [Member] | Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Intersegment Revenues	295.3			105.4			605.5	372.5
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Operating Profit (Loss)	$ (21.4)			$ (23.1)			$ (62.2)	$ (63.1)

XML

Segment Information - Narrative (Details)	9 Months Ended
	Sep. 30, 2022 segment
Segment Reporting [Abstract]
Number of Reportable Segments	2

XML

Partially-Owned Leasing Subsidiaries - Narrative (Details) $ in Millions	3 Months Ended		9 Months Ended		15 Months Ended
	Sep. 30, 2022 USD ($) board_member	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) board_member subsidiary	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) board_member	Aug. 18, 2021
Noncontrolling Interest [Line Items]
Gains on dispositions of property	$ 39.4	$ 41.6	$ 92.5	$ 65.2
Revenues	496.6	$ 419.8	$ 1,386.1	$ 1,043.8
Signal Rail Holdings LLC
Noncontrolling Interest [Line Items]
Proceeds from Sales of Business, Affiliate and Productive Assets	254.1				$ 579.2
Gains on dispositions of property	25.1
Revenues	$ 2.5
Signal Rail Holdings LLC
Noncontrolling Interest [Line Items]
Equity Method Investment, JV Majority Ownership Percentage						9000.00%
Equity Method Investment, Ownership Percentage	12.90%		12.90%		12.90%	1000.00%
Equity Method Investment, Aggregate Future Estimated Investment of Railcars	$ 1,000.0		$ 1,000.0		$ 1,000.0
Proceeds from Equity Method Investment, Distribution	13.5
Equity Method Investments	20.6		20.6		20.6
Partially-owned subsidiaries
Noncontrolling Interest [Line Items]
Parent Company Guarantees	$ 0.0		$ 0.0		$ 0.0
Railcar Leasing and Management Services Group [Member] | Partially-owned subsidiaries
Noncontrolling Interest [Line Items]
Number of Subsidiaries | subsidiary			2
Number of Board Members | board_member	7		7		7
Number of Board Members of Subsidiary, Designated by Parent | board_member	2		2		2
Partially-owned subsidiaries | Railcar Leasing and Management Services Group [Member]
Noncontrolling Interest [Line Items]
Carrying Value of Investment In Partially-Owned Consolidated Subsidiary	$ 134.5		$ 134.5		$ 134.5
Noncontrolling Interest, Ownership Percentage by Parent	38.00%		38.00%		38.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	62.00%		62.00%		62.00%

XML

Railcar Leasing and Management Services Group - Selected consolidating financial information for the Leasing Group (Details) - USD ($) $ in Millions		Sep. 30, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Cash and cash equivalents		$ 58.5	$ 167.3
Receivables, net of allowance		280.2	227.6
Property, Plant and Equipment, Net		6,893.8	6,846.9
Restricted cash		180.2	135.1
Other assets		329.4	266.5
Total assets		8,599.1	8,235.9
Total debt		5,493.7	5,170.6
Deferred income taxes		1,128.5	1,106.8
Other liabilities		140.3	147.9
Total liabilities		7,338.0	6,939.1
Noncontrolling interest		255.2	267.0
Total Equity		1,005.9	1,029.8
Operating Segments [Member] | Railcar Leasing and Management Services Group [Member]
Segment Reporting Information [Line Items]
Cash and cash equivalents		4.4	3.4
Receivables, net of allowance		109.6	100.8
Property, Plant and Equipment, Net		7,326.6	7,276.7
Restricted cash		180.2	135.1
Other assets		134.5	69.4
Total assets		7,755.3	7,585.4
Accounts payable and accrued liabilities		157.8	143.5
Total debt		5,034.7	4,771.9
Deferred income taxes		1,147.9	1,115.3
Other liabilities		41.7	35.6
Total liabilities		6,382.1	6,066.3
Noncontrolling interest		255.2	267.0
Total Equity		1,118.0	1,252.1
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net		(774.4)	(779.1)
Railcar Leasing and Management Services Group [Member]
Segment Reporting Information [Line Items]
Cash and cash equivalents		4.4	3.4
Receivables, net of allowance		109.6	100.8
Property, Plant and Equipment, Net		6,552.2	6,497.6
Restricted cash		180.2	135.1
Other assets		134.5	69.4
Total assets		6,980.9	6,806.3
Accounts payable and accrued liabilities		157.8	143.5
Total debt		5,034.7	4,771.9
Deferred income taxes		970.3	938.7
Other liabilities		41.7	35.6
Total liabilities		6,204.5	5,889.7
Noncontrolling interest		255.2	267.0
Total Equity		521.2	649.6
Wholly-owned subsidiaries | Operating Segments [Member] | Railcar Leasing and Management Services Group [Member]
Segment Reporting Information [Line Items]
Cash and cash equivalents		4.4	3.4
Receivables, net of allowance		97.3	90.7
Property, Plant and Equipment, Net		5,793.1	5,706.1
Restricted cash		117.1	76.5
Other assets		132.6	67.3
Total assets		6,144.5	5,944.0
Accounts payable and accrued liabilities		114.9	113.4
Total debt		3,844.5	3,555.8
Deferred income taxes		1,147.0	1,114.2
Other liabilities		41.7	35.6
Total liabilities		5,148.1	4,819.0
Noncontrolling interest		0.0	0.0
Total Equity		996.4	1,125.0
Partially-owned subsidiaries | Operating Segments [Member] | Railcar Leasing and Management Services Group [Member]
Segment Reporting Information [Line Items]
Cash and cash equivalents		0.0	0.0
Receivables, net of allowance		12.3	10.1
Property, Plant and Equipment, Net		1,533.5	1,570.6
Restricted cash		63.1	58.6
Other assets		1.9	2.1
Total assets		1,610.8	1,641.4
Accounts payable and accrued liabilities		42.9	30.1
Total debt		1,190.2	1,216.1
Deferred income taxes		0.9	1.1
Other liabilities		0.0	0.0
Total liabilities		1,234.0	1,247.3
Noncontrolling interest		255.2	267.0
Total Equity		121.6	127.1
Consolidated Subsidiaries, Leasing [Member] | Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Cash and cash equivalents		0.0	0.0
Receivables, net of allowance		0.0	0.0
Property, Plant and Equipment, Net	[1]	(774.4)	(779.1)
Restricted cash		0.0	0.0
Other assets		0.0	0.0
Total assets	[1]	(774.4)	(779.1)
Accounts payable and accrued liabilities		0.0	0.0
Total debt		0.0	0.0
Deferred income taxes	[1]	(177.6)	(176.6)
Other liabilities		0.0	0.0
Total liabilities	[1]	(177.6)	(176.6)
Noncontrolling interest		0.0	0.0
Total Equity	[1]	$ (596.8)	$ (602.5)

[1] Net deferred profit on railcars sold to the Leasing Group consists of intersegment profit that is eliminated in consolidation. Net deferred profit and the related deferred tax impact are included as adjustments to the property, plant, and equipment, net and deferred income taxes line items, respectively, in the Eliminations – Lease Subsidiary column above to reflect the net book value of the railcars purchased by the Leasing Group from the Rail Products Group based on manufacturing cost. See Note 5 and Note 8 for a further discussion regarding our investment in our partially-owned leasing subsidiaries and the related indebtedness.

XML

Railcar Leasing and Management Services Group - Selected consolidating income statement information for the Leasing Group (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022		Sep. 30, 2021
Revenues:
Revenues		$ 496.6	$ 419.8	$ 1,386.1		$ 1,043.8
Operating profit (1):
Total operating profit		92.7	78.3	220.5		187.6
Select expense information:
Depreciation (3)				206.0		200.4
Selling, engineering, and administrative expenses		48.0	45.8	137.7		136.7
Profit recognized at sales-type lease commencement (1)		0.0	0.0	1.3	[1]	0.0
Loss on extinguishment of debt		0.0	0.0	1.5		11.7
Sustainable Railcar Conversions
Select expense information:
Depreciation (3)		2.4	4.7	8.5		7.3
Operating Segments [Member]
Revenues:
Revenues		496.6	419.8	1,386.1		1,043.8
Operating profit (1):
Total operating profit		133.9	106.2	333.7		260.0
Railcar Leasing and Management Services Group [Member] | Operating Segments [Member]
Revenues:
Revenues		194.8	185.5	573.2		554.1
Operating profit (1):
Total operating profit		$ 107.9	$ 109.3	$ 293.2		$ 268.7
Operating Income (Loss), Percent Change		(1.30%)		9.10%
Operating Profit Margin		55.40%	58.90%	51.20%		48.50%
Select expense information:
Depreciation (3)	[2],[3]	$ 59.1	$ 58.7	$ 175.7		$ 170.5
Depreciation, Depletion, and Amortization, Percent Change	[2],[3]	0.70%		3.00%
Maintenance and compliance	[3]	$ 28.2	22.8	$ 84.7		73.7
Maintenance Costs, Percent Change	[3]	23.70%		14.90%
Operating Leases, Rent Expense, Percent Change	[3]	4.00%		8.40%
Operating lease expense	[3]	$ 5.2	5.0	$ 15.5		14.3
Selling, engineering, and administrative expenses	[3]	$ 14.2	11.6	$ 39.6		36.1
Selling, Engineering, and Administrative Expense, Percent Change	[3]	22.40%		9.70%
Interest (4)		$ 49.2	39.9	$ 133.9	[4]	142.6	[4]
Interest Expense, Percent Change		23.30%		(6.10%)	[4]
Railcar Leasing and Management Services Group [Member] | Operating Segments [Member] | Leasing and Management [Member]
Revenues:
Revenues		$ 194.8	185.5	$ 573.2		554.1
Revenues, Percent Change		5.00%		3.40%
Operating profit (1):
Total operating profit		$ 73.6	$ 76.4	$ 220.2		$ 223.0
Operating Income (Loss), Percent Change		(3.70%)		(1.30%)
Operating Profit Margin		37.80%	41.20%	38.40%		40.20%
Railcar Leasing and Management Services Group [Member] | Operating Segments [Member] | Sales of Leased Railcars [Domain]
Operating profit (1):
Total operating profit		$ 34.3	$ 32.9	$ 73.0	[5]	$ 45.7
Operating Profit Margin		11.40%	10.20%	13.90%		11.10%

[1] Included in gains on dispositions of property – lease portfolio sales on our Consolidated Statements of Operations.

[2] Depreciation expense includes $2.4 million and $8.5 million for the three and nine months ended September 30, 2022, respectively, related to the disposal of certain railcar components associated with our sustainable railcar conversion program. For the three and nine months ended September 30, 2021, depreciation expense includes $4.7 million and $7.3 million, respectively, related to our sustainable railcar conversion program.

[3] Operating profit includes: depreciation; fleet operating costs, which include maintenance, compliance, freight, and storage; rent and ad valorem taxes; and selling, engineering, and administrative expenses. Amortization of deferred profit on railcars sold from the Rail Products Group to the Leasing Group is included in the operating profit of the Leasing Group, resulting in the recognition of depreciation expense based on our original manufacturing cost of the railcars. Interest expense is not a component of operating profit and includes the effect of hedges.

[4] Interest expense for the nine months ended September 30, 2022 includes $1.5 million of loss on extinguishment of debt associated with the repayment of TRIP Railcar Co.'s outstanding term loan agreement. Interest expense for the nine months ended September 30, 2021 includes $11.7 million of loss on extinguishment of debt associated with the refinancing of our partially-owned subsidiaries' debt.

[5] Includes $1.3 million selling profit associated with sales-type leases for the nine months ended September 30, 2022.

XML

Railcar Leasing and Management Services Group - Schedule of proceeds from leased railcars (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022		Sep. 30, 2021
Property Subject to or Available for Operating Lease [Line Items]
Lease portfolio sales				$ 514.8		$ 404.5
Operating profit on lease portfolio sales (1)		$ 92.7	$ 78.3	220.5		187.6
Operating Segments [Member]
Property Subject to or Available for Operating Lease [Line Items]
Operating profit on lease portfolio sales (1)		133.9	106.2	333.7		260.0
Operating Segments [Member] | Railcar Leasing and Management Services Group [Member]
Property Subject to or Available for Operating Lease [Line Items]
Operating profit on lease portfolio sales (1)		$ 107.9	$ 109.3	$ 293.2		$ 268.7
Operating Profit Margin		55.40%	58.90%	51.20%		48.50%
Operating Segments [Member] | Sales of Leased Railcars [Domain] | Railcar Leasing and Management Services Group [Member]
Property Subject to or Available for Operating Lease [Line Items]
Lease portfolio sales		$ 299.6	$ 322.1	$ 514.8		$ 410.9
Operating profit on lease portfolio sales (1)		$ 34.3	$ 32.9	$ 73.0	[1]	$ 45.7
Operating Profit Margin		11.40%	10.20%	13.90%		11.10%
Operating Segments [Member] | Sales of Leased Railcars, Excluding Sales-Type Leases | Railcar Leasing and Management Services Group [Member]
Property Subject to or Available for Operating Lease [Line Items]
Operating profit on lease portfolio sales (1)	[2]			$ 71.7

[1] Includes $1.3 million selling profit associated with sales-type leases for the nine months ended September 30, 2022.

[2] Excludes $1.3 million selling profit associated with sales-type leases for the nine months ended September 30, 2022.

XML

Railcar Leasing and Management Services Group - Future contractual minimum rental revenues on leases (Details) - Railcar Leasing and Management Services Group [Member] $ in Millions	Sep. 30, 2022 USD ($)
Future contractual minimum rental revenue
Remaining three months of 2022	$ 156.7	[1]
2023	519.9	[1]
2024	406.0	[1]
2025	307.4	[1]
2026	220.0	[1]
Thereafter	369.4	[1]
Total	1,979.4	[1]
Railroad Transportation Equipment
Future contractual minimum rental revenue
Remaining three months of 2022	154.2
2023	512.2
2024	402.2
2025	304.8
2026	218.1
Thereafter	368.9
Total	$ 1,960.4

[1] Total contractual minimum rental revenues on operating leases relates to our wholly-owned and partially-owned subsidiaries and sub-lease rental revenues associated with the Leasing Group's operating lease obligations.

XML

Railcar Leasing and Management Services Group - Future operating lease obligations and future contractual minimum rental revenues (Details) $ in Millions	Sep. 30, 2022 USD ($)
Future operating lease obligations
Remaining three months of 2022	$ 5.3
2023	19.9
2024	14.9
2025	12.1
2026	11.4
Thereafter	66.5
Lessee, Operating Lease, Liability, to be Paid, Total	130.1
Railcar Leasing and Management Services Group [Member]
Future operating lease obligations
Remaining three months of 2022	3.2
2023	12.0
2024	8.0
2025	6.0
2026	5.7
Thereafter	8.7
Lessee, Operating Lease, Liability, to be Paid, Total	43.6
Future contractual minimum rental revenues
Remaining three months of 2022	156.7	[1]
2023	519.9	[1]
2024	406.0	[1]
2025	307.4	[1]
2026	220.0	[1]
Thereafter	369.4	[1]
Total	1,979.4	[1]
Railcar Leasing and Management Services Group [Member] | Railroad Transportation Equipment
Future operating lease obligations
Remaining three months of 2022	3.2
2023	11.9
2024	7.9
2025	6.0
2026	5.7
Thereafter	8.7
Lessee, Operating Lease, Liability, to be Paid, Total	43.4
Railcar Leasing and Management Services Group [Member] | Building [Member]
Future operating lease obligations
Lessee, Operating Lease, Liability, to be Paid, Total	0.2
Railcar Leasing and Management Services Group [Member] | Property Lease Guarantee [Member]
Future contractual minimum rental revenues
Guarantor Obligations, Maximum Exposure, Undiscounted	1.4
Railcar Leasing and Management Services Group [Member] | Operating leases
Future contractual minimum rental revenues
Remaining three months of 2022	2.5
2023	7.7
2024	3.8
2025	2.6
2026	1.9
Thereafter	0.5
Total	$ 19.0

[1] Total contractual minimum rental revenues on operating leases relates to our wholly-owned and partially-owned subsidiaries and sub-lease rental revenues associated with the Leasing Group's operating lease obligations.

XML

Railcar Leasing and Management Services Group - Narrative (Details) - Railcar Leasing and Management Services Group [Member] $ in Millions	Sep. 30, 2022 USD ($)
Minimum
Segment Reporting Information [Line Items]
Lessor, Operating Lease, Term of Contract	1 year
Maximum
Segment Reporting Information [Line Items]
Lessor, Operating Lease, Term of Contract	10 years
Wholly-owned subsidiaries
Segment Reporting Information [Line Items]
Net book value of unpledged equipment	$ 350.8
Wholly-owned subsidiaries | Secured Debt [Member]
Segment Reporting Information [Line Items]
Debt Instrument, Collateral Amount	5,431.2
TRIP Holdings [Member] | Secured Debt [Member]
Segment Reporting Information [Line Items]
Debt Instrument, Collateral Amount	1,078.6
RIV 2013 Holdings | Secured Debt [Member] | TRL 2012 Secured Railcar Equipment Notes - RIV 2013 [Member]
Segment Reporting Information [Line Items]
Debt Instrument, Collateral Amount	$ 454.9

XML

Property, Plant, and Equipment - Components of property, plant, and equipment (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment, Net [Abstract]
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,920.5 and $1,927.7	$ 9,244.8	$ 9,105.6
Less: accumulated depreciation	(2,351.0)	(2,258.7)
Property, Plant and Equipment, Net	6,893.8	6,846.9
Intersegment Eliminations [Member]
Property, Plant and Equipment, Net [Abstract]
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,920.5 and $1,927.7	(1,057.5)	(1,047.3)
NegativeAccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment	283.1	268.2
Property, Plant and Equipment, Net	(774.4)	(779.1)
Railcar Leasing and Management Services Group [Member] | Operating Segments [Member]
Property, Plant and Equipment, Net [Abstract]
Property, Plant and Equipment, Net	7,326.6	7,276.7
Manufacturing and Corporate [Member]
Property, Plant and Equipment, Net [Abstract]
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,920.5 and $1,927.7	822.7	828.0
Less: accumulated depreciation	(481.1)	(478.7)
Property, Plant and Equipment, Net	341.6	349.3
Manufacturing and Corporate [Member] | Land
Property, Plant and Equipment, Net [Abstract]
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,920.5 and $1,927.7	15.8	17.4
Manufacturing and Corporate [Member] | Buildings and improvements
Property, Plant and Equipment, Net [Abstract]
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,920.5 and $1,927.7	385.0	377.4
Manufacturing and Corporate [Member] | Machinery and other
Property, Plant and Equipment, Net [Abstract]
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,920.5 and $1,927.7	406.0	415.1
Manufacturing and Corporate [Member] | Construction in progress
Property, Plant and Equipment, Net [Abstract]
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,920.5 and $1,927.7	15.9	18.1
Wholly-owned subsidiaries | Railcar Leasing and Management Services Group [Member] | Operating Segments [Member]
Property, Plant and Equipment, Net [Abstract]
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,920.5 and $1,927.7	7,245.1	7,082.0
Less: accumulated depreciation	(1,452.0)	(1,375.9)
Property, Plant and Equipment, Net	5,793.1	5,706.1
Wholly-owned subsidiaries | Railcar Leasing and Management Services Group [Member] | Machinery and other | Operating Segments [Member]
Property, Plant and Equipment, Net [Abstract]
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,920.5 and $1,927.7	21.6	20.7
Wholly-owned subsidiaries | Railcar Leasing and Management Services Group [Member] | Equipment on lease | Operating Segments [Member]
Property, Plant and Equipment, Net [Abstract]
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,920.5 and $1,927.7	7,223.5	7,061.3
Partially-owned subsidiaries
Property, Plant and Equipment, Net [Abstract]
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,920.5 and $1,927.7	1,920.5	1,927.7
Less: accumulated depreciation	(591.8)	(568.4)
Partially-owned subsidiaries | Railcar Leasing and Management Services Group [Member] | Operating Segments [Member]
Property, Plant and Equipment, Net [Abstract]
Less: accumulated depreciation	(701.0)	(672.3)
Property, Plant and Equipment, Net	1,533.5	1,570.6
Partially-owned subsidiaries | Railcar Leasing and Management Services Group [Member] | Equipment on lease | Operating Segments [Member]
Property, Plant and Equipment, Net [Abstract]
Property, plant, and equipment, at cost, including partially-owned subsidiaries of $1,920.5 and $1,927.7	$ 2,234.5	$ 2,242.9

XML

Debt - Components of debt (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total recourse debt	$ 459.0	$ 398.7
Total debt	5,493.7	5,170.6
Nonrecourse
Debt Instrument [Line Items]
Debt, Long-Term and Short-Term, Combined Amount	5,034.7	4,771.9
Level 1
Debt Instrument [Line Items]
Long-term Debt, Fair Value	1,514.8	1,645.7
Level 2
Debt Instrument [Line Items]
Long-term Debt, Fair Value	381.5	420.8
Level 3
Debt Instrument [Line Items]
Long-term Debt, Fair Value	3,284.8	3,215.4
Fair Value, Inputs, Level 1, 2 and 3
Debt Instrument [Line Items]
Long-term Debt, Fair Value	5,181.1	5,281.9
Corporate Segment [Member]
Debt Instrument [Line Items]
Long-term Debt, Net of Unamortized Discount, Gross of Unamortized Debt Issuance Costs	459.9	399.9
Less: unamortized debt issuance costs	0.9	1.2
Senior Notes [Member] | Corporate Segment [Member]
Debt Instrument [Line Items]
Long-term Debt, Net of Unamortized Discount, Gross of Unamortized Debt Issuance Costs	399.9	399.9
Debt Instrument, Unamortized Discount	0.1	0.1
TRIP Railcar Co Term Loan | Line of Credit [Member] | Railcar Leasing and Management Services Group [Member]
Debt Instrument [Line Items]
Long-term Line of Credit	0.0	323.7
Wholly Owned Subsidiaries [Member] | Nonrecourse
Debt Instrument [Line Items]
Debt, Long-Term and Short-Term, Combined Amount	3,844.5	3,555.8
Wholly Owned Subsidiaries [Member] | Railcar Leasing and Management Services Group [Member]
Debt Instrument [Line Items]
Less: unamortized debt issuance costs	22.6	23.7
Non-Recourse Debt, Gross of Issuance Cost, Net of Discount	3,867.1	3,579.5
Wholly Owned Subsidiaries [Member] | Railcar Leasing and Management Services Group [Member] | Nonrecourse
Debt Instrument [Line Items]
Debt, Long-Term and Short-Term, Combined Amount	3,844.5	3,555.8
Wholly Owned Subsidiaries [Member] | Secured Debt [Member] | Railcar Leasing and Management Services Group [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	0.4	0.5
Non-Recourse Debt, Gross of Issuance Cost, Net of Discount	2,412.3	2,257.5
Wholly Owned Subsidiaries [Member] | 2017 Secured Railcar Equipment Notes [Member] [Domain] | Promissory Notes [Member] | Railcar Leasing and Management Services Group [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	6.2	7.8
Non-Recourse Debt, Gross of Issuance Cost, Net of Discount	726.6	760.2
Partially-Owned Subsidiaries [Member] | Nonrecourse
Debt Instrument [Line Items]
Debt, Long-Term and Short-Term, Combined Amount	1,190.2	1,216.1
Partially-Owned Subsidiaries [Member] | Railcar Leasing and Management Services Group [Member]
Debt Instrument [Line Items]
Less: unamortized debt issuance costs	10.5	11.1
Non-Recourse Debt, Gross of Issuance Cost, Net of Discount	1,200.7	1,227.2
Partially-Owned Subsidiaries [Member] | Railcar Leasing and Management Services Group [Member] | Nonrecourse
Debt Instrument [Line Items]
Debt, Long-Term and Short-Term, Combined Amount	1,190.2	1,216.1
Partially-Owned Subsidiaries [Member] | Secured Debt [Member] | Railcar Leasing and Management Services Group [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	0.4	0.3
Non-Recourse Debt, Gross of Issuance Cost, Net of Discount	1,200.7	903.5
Revolving Credit Facility [Member] | Line of Credit [Member] | Corporate Segment [Member]
Debt Instrument [Line Items]
Long-term Debt, Net of Unamortized Discount, Gross of Unamortized Debt Issuance Costs	60.0	0.0
Revolving Credit Facility [Member] | TILC [Member] | TILC Warehouse Facility [Member] | Line of Credit [Member] | Railcar Leasing and Management Services Group [Member]
Debt Instrument [Line Items]
Long-term Line of Credit	$ 728.2	$ 561.8

XML

Debt - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Loss on extinguishment of debt	$ 0.0	$ 0.0	$ 1.5	$ 11.7
Corporate Segment [Member] | Senior Notes [Member] | 4.55% Senior Notes Due October 2024 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.55%		4.55%
Corporate Segment [Member] | Revolving Credit Facility [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 450.0		$ 450.0
Proceeds from Lines of Credit			545.0
Repayments of Lines of Credit			485.0
Line of Credit Facility, Remaining Borrowing Capacity	385.1		385.1
Line of Credit Facility, Maximum Borrowing Capacity	$ 264.1		$ 264.1
Debt Instrument, Basis Spread on Variable Rate	2.35%
Debt Instrument, Interest Rate, Effective Percentage	5.34%		5.34%
Line of Credit Facility, Interest Rate at Period End	0.35%		0.35%
Corporate Segment [Member] | Letter of Credit [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Letters of Credit Outstanding, Amount	$ 4.9		$ 4.9
TILC [Member] | Railcar Leasing and Management Services Group [Member] | Secured Debt [Member] | TRL-2022 Series 2022-1 Class A Green Secured Railcar Equipment Notes
Debt Instrument [Line Items]
Proceeds from Issuance of Debt			209.9
TILC [Member] | Railcar Leasing and Management Services Group [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | TILC Warehouse Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 142.1		$ 142.1
Debt Instrument, Interest Rate, Effective Percentage	4.48%		4.48%
Debt Instrument, Face Amount	$ 1,000.0		$ 1,000.0
Borrowings on Warehouse Loan Facility			554.1
Repayments on Warehouse Loan Facility			387.7
Line of Credit Facility, Remaining Borrowing Capacity Exclusive of Current Restrictions	$ 271.8		$ 271.8
Wholly-owned subsidiaries | Railcar Leasing and Management Services Group [Member] | Secured Debt [Member] | TRL-2022 Series 2022-1 Class A Green Secured Railcar Equipment Notes
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.55%		4.55%
Debt Instrument, Face Amount	$ 244.8		$ 244.8
Payments of Debt Issuance Costs			$ 2.6
TRIP Holdings [Member] | Railcar Leasing and Management Services Group [Member] | Secured Debt [Member] | Tribute Rail Class A Secured Railcar Equipment Notes
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.76%		4.76%
Debt Instrument, Face Amount	$ 290.0		$ 290.0
TRIP Holdings [Member] | Railcar Leasing and Management Services Group [Member] | Secured Debt [Member] | Tribute Rail Class B Secured Railcar Equipment Notes
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.75%		5.75%
Debt Instrument, Face Amount	$ 37.0		$ 37.0
TRIP Holdings [Member] | Railcar Leasing and Management Services Group [Member] | Secured Debt [Member] | Tribute Rail Secured Railcar Equipment Notes
Debt Instrument [Line Items]
Payments of Debt Issuance Costs			3.4
TRIP Holdings [Member] | Railcar Leasing and Management Services Group [Member] | Secured Debt [Member] | TRIP Railcar Co Term Loan
Debt Instrument [Line Items]
Extinguishment of Debt, Amount			$ 319.4
Minimum | Corporate Segment [Member] | Revolving Credit Facility [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Interest Rate at Period End	0.175%		0.175%
Maximum | Corporate Segment [Member] | Revolving Credit Facility [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Interest Rate at Period End	0.40%		0.40%

XML

Income Taxes Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Percent	(22.50%)		(23.70%)
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%	21.00%	21.00%
Provision (benefit) for income taxes	$ 8.6	$ 8.3	$ 17.4	$ 9.4
Income from continuing operations before income taxes	38.3	$ 33.8	73.5	$ 27.1
Income tax receivable	$ 11.0		$ 11.0		$ 5.4

XML

Employee Retirement Plans - Components of net retirement cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Defined Contribution Plan, Cost	$ 2.5	$ 2.5	$ 6.8	$ 6.8
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	$ 0.2	$ 0.1	$ 0.5	$ 0.5

XML

Employee Retirement Plans - Narrative (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2022	Sep. 30, 2021
Retirement Benefits [Abstract]
Defined Benefit Plan, Benefit Obligation, Payment for Settlement			$ 151.5
Defined Benefit Plan, Plan Assets, Administration Expense	$ 0.0	$ 0.0		$ 0.2	$ 2.2
Defined Benefit Plan, Funded (Unfunded) Status of Plan	$ 0.4			$ 0.4

XML

Accumulated Other Comprehensive Loss - Changes in accumulated other comprehensive loss (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 16.4						$ 16.4		$ (17.0)
Changes in accumulated other comprehensive loss
Other comprehensive income, net of tax, before reclassifications							26.8
Amounts reclassified from AOCI, net of tax benefit of $—, $1.2, $—, and $1.2							4.8
Reclassification from AOCI, Current Period, Tax							1.2
Reclassification adjustments for losses included in discontinued operations, net of tax benefit of $—, $—, $—, and $—	0.0			$ 0.0			1.3	$ 0.0
Less: noncontrolling interest	(10.3)	$ (5.3)	$ (17.3)	(1.0)	$ (1.6)	$ (5.4)	(32.9)	$ (8.0)
Other comprehensive income							33.4
Currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	0.0						0.0		(1.3)
Changes in accumulated other comprehensive loss
Other comprehensive income, net of tax, before reclassifications							0.0
Amounts reclassified from AOCI, net of tax benefit of $—, $1.2, $—, and $1.2							0.0
Reclassification from AOCI, Current Period, Tax							0.0
Reclassification adjustments for losses included in discontinued operations, net of tax benefit of $—, $—, $—, and $—							1.3
Other comprehensive income							1.3
Unrealized gains/(losses) on derivative financial instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	19.7						19.7		(12.2)
Changes in accumulated other comprehensive loss
Other comprehensive income, net of tax, before reclassifications							26.8
Amounts reclassified from AOCI, net of tax benefit of $—, $1.2, $—, and $1.2							4.6
Reclassification from AOCI, Current Period, Tax							1.2
Reclassification adjustments for losses included in discontinued operations, net of tax benefit of $—, $—, $—, and $—							0.0
Other comprehensive income							31.9
Net actuarial gains/(losses) of defined benefit plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(3.3)						(3.3)		(3.5)
Changes in accumulated other comprehensive loss
Other comprehensive income, net of tax, before reclassifications							0.0
Amounts reclassified from AOCI, net of tax benefit of $—, $1.2, $—, and $1.2							0.2
Reclassification from AOCI, Current Period, Tax							0.0
Reclassification adjustments for losses included in discontinued operations, net of tax benefit of $—, $—, $—, and $—							0.0
Other comprehensive income							0.2
Accumulated Gain (Loss), Net, Cash Flow Hedge, Noncontrolling Interest [Member]
Changes in accumulated other comprehensive loss
Less: noncontrolling interest							0.5
Noncontrolling Interest [Member]
Changes in accumulated other comprehensive loss
Less: noncontrolling interest	(0.3)	1.0	(0.2)	(0.3)	(0.4)	(0.3)	0.5
Accumulated other comprehensive income (loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	16.4						$ 16.4		$ (17.0)
Changes in accumulated other comprehensive loss
Less: noncontrolling interest	$ (10.0)	$ (6.3)	$ (17.1)	$ (0.7)	$ (1.2)	$ (5.1)

XML

Common Stock and Stock-Based Compensation Stockholders Equity (Details) - USD ($) $ in Millions	3 Months Ended								9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022		Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2021	Sep. 09, 2021
Share Repurchases [Line Items]
Treasury Stock, Value, Acquired, Cost Method	$ 14.1	$ 25.3				$ 77.1	$ 290.8	$ 36.8
Share-based Payment Arrangement, Cash Used to Settle Award	2.6
2021-2022 Share Repurchase Program
Share Repurchases [Line Items]
Stock Repurchase Program, Authorized Amount										$ 250.0
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 33.7	$ 47.8	[1]	$ 98.1	$ 98.1	$ 250.0			$ 250.0
ASR Program
Share Repurchases [Line Items]
Stock Repurchase Program, Authorized Amount					$ 125.0
Treasury Stock, Shares, Acquired		760,602			3,300,000
Treasury Stock, Value, Acquired, Cost Method		$ 25.0
Special Share Repurchase Program
Share Repurchases [Line Items]
Treasury Stock, Shares, Acquired							8,100,000		8,100,000
Treasury Stock, Value, Acquired, Cost Method							$ 222.5		$ 222.5
Treasury Stock [Member]
Share Repurchases [Line Items]
Treasury Stock, Shares, Acquired	600,000	1,000,000.0				2,800,000	10,500,000	1,300,000
Treasury Stock, Value, Acquired, Cost Method	$ 14.1	$ 25.3				$ 77.1	$ 290.8	$ 36.8
Treasury Stock [Member] | 2021-2022 Share Repurchase Program
Share Repurchases [Line Items]
Treasury Stock, Shares, Acquired	610,000	1,760,462		0	5,155,491	0
Treasury Stock, Value, Acquired, Cost Method	$ 14.1	$ 50.3		$ 0.0	$ 151.9	$ 0.0
Total Shares Repurchased Under Program	7,525,953
Total Shares Repurchased Under Program, Value	$ 216.3
Treasury Stock [Member] | 2020-2021 Share Repurchase Program
Share Repurchases [Line Items]
Treasury Stock, Shares, Acquired						2,800,000			14,600,000
Treasury Stock, Value, Acquired, Cost Method						$ 77.1			$ 404.7

[1] Share repurchases during the second quarter of 2022 included 760,602 shares at a cost of $25.0 million representing the final settlement of the ASR, which was funded in December 2021 but a portion of which remained outstanding as of December 31, 2021.

XML

Common Stock and Stock-Based Compensation Stock-based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 5.9	$ 5.7	$ 5.1	$ 6.0	$ 4.1	$ 5.1	$ 16.7	$ 15.2
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period							10 years
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares Granted							630,449
Weighted Average Grant-Date Fair Value per Award							$ 25.64
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period							1 year
Number of Shares Granted							26,339
Weighted Average Grant-Date Fair Value per Award							$ 25.43
Performance units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period							3 years
Number of Shares Granted							243,084
Weighted Average Grant-Date Fair Value per Award							$ 29.89
Minimum | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period							3 years
Maximum | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period							4 years

XML

Earnings Per Common Share - EPS calculation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Income from continuing operations	$ 29.7	$ 25.5	$ 56.1	$ 17.7
Less: Net (income) loss attributable to noncontrolling interest	(0.5)	(3.9)	(7.9)	6.0
Net income from continuing operations attributable to Trinity Industries, Inc.	29.2	21.6	48.2	23.7
Income (loss) from discontinued operations, net of provision (benefit) for income taxes of $(1.0), $3.6, $(3.5), and $8.0	(3.4)	10.4	(13.7)	24.3
Loss on sale of discontinued operations, net of benefit for income taxes of $—, $—, $1.4, and $—	0.0	0.0	(5.7)	0.0
Net income (loss) from discontinued operations attributable to Trinity Industries, Inc.	(3.4)	10.4	(19.4)	24.3
Net income attributable to Trinity Industries, Inc.	$ 25.8	$ 32.0	$ 28.8	$ 48.0
Basic weighted average shares outstanding	81.7	97.7	82.3	103.4
Effect of dilutive securities	1.6	1.8	2.1	2.3
Diluted weighted average shares outstanding	83.3	99.5	84.4	105.7
Income (Loss) from Continuing Operations, Per Basic Share	$ 0.36	$ 0.22	$ 0.59	$ 0.23
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share	(0.04)	0.11	(0.24)	0.23
Basic net income attributable to Trinity Industries, Inc.	0.32	0.33	0.35	0.46
Income (Loss) from Continuing Operations, Per Diluted Share	0.35	0.22	0.57	0.22
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share	(0.04)	0.11	(0.23)	0.23
Diluted net income attributable to Trinity Industries, Inc.	$ 0.31	$ 0.33	$ 0.34	$ 0.45
Restricted Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0.3	0.1	0.1	0.1
Stock options
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0.0	0.0	0.0	0.0

XML

Contingencies - Narrative (Details) - USD ($) $ in Millions		3 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended	18 Months Ended
	Jun. 09, 2015	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2022	Mar. 31, 2022
Loss Contingencies [Line Items]
Loss Contingency, Receivable		$ 10.1		$ 10.1		$ 10.1
Former Gain Contingency, Recognized in Current Period		1.1		1.1		1.1	$ 6.4
Accrued Liabilities [Member]
Loss Contingencies [Line Items]
Loss Contingency Accrual		37.3		37.3		37.3
Massachusetts Qui Tam
Loss Contingencies [Line Items]
Loss Contingency, Loss in Period				5.0
Highway Products Litigation | False Claims Act, USA
Loss Contingencies [Line Items]
Loss Contingency, Judgment Entered, Value	$ 682.4
Highway Products Litigation | State, County, and Municipal Actions [Member]
Loss Contingencies [Line Items]
Loss Contingency Accrual		0.0		0.0		0.0
Highway Products Litigation | Missouri Class Action
Loss Contingencies [Line Items]
Loss Contingency, Loss in Period					$ 23.9
Loss Contingency, Estimate of Possible Loss, Net of Tax					$ 18.3
Environmental and Workplace Matters [Member]
Loss Contingencies [Line Items]
Loss Contingency Accrual		1.0		1.0		1.0
Loss from Catastrophes
Loss Contingencies [Line Items]
Loss Contingency, Receivable		2.6	$ 2.5	2.6		2.6	$ 7.3
Loss Contingency, Receivable, Proceeds		2.8	$ 4.8			25.4
Property, Plant and Equipment, Additions						17.0
Loss Contingency, Receivable, Additions		2.9
Damage from Fire, Explosion or Other Hazard
Loss Contingencies [Line Items]
Loss Contingency, Receivable, Proceeds						8.1
Minimum
Loss Contingencies [Line Items]
Loss Contingency, Estimate of Possible Loss		37.0		37.0		37.0
Maximum
Loss Contingencies [Line Items]
Loss Contingency, Estimate of Possible Loss		$ 51.2		$ 51.2		$ 51.2