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v3.23.3

Derivative Instruments and Fair Value Accounting (Tables) | 9 Months Ended
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Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |  |
Schedule of Interest Rate Derivatives [Table Text Block] |
|  |  |  |  | Included in accompanying balance sheet at September 30, 2023
|  |  |  |  |  |  | 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 | % |  | $ | — |  |  | $ | 0.3 |  |  | $ | — |
TRIP Holdings warehouse loan (2) | $ | 788.5 |  |  | 3.60 | % |  | $ | — |  |  | $ | — |  |  | $ | — |
Tribute Rail secured railcar equipment notes | $ | 256.0 |  |  | 2.86 | % |  | $ | — |  |  | $ | 0.5 |  |  | $ | 0.7 |
2017 promissory notes – interest rate cap | $ | 169.3 |  |  | 3.00 | % |  | $ | — |  |  | $ | (0.2) |  |  | $ | — |
Open hedges: |  |  |  |  |  |  |  |  |
2017 promissory notes – interest rate swap | $ | 414.7 |  |  | 2.31 | % |  | $ | 20.2 |  |  | $ | (19.6) |  |  | $ | — |
TRL-2023 term loan (3) | $ | 269.8 |  |  | 3.79 | % |  | $ | 5.9 |  |  | $ | (5.7) |  |  | $ | — |
(1) Weighted average fixed interest rate, except for the interest rate cap on the 2017 promissory notes. (2) As of March 31, 2023, all amounts previously recorded in AOCI related to this hedge have been fully amortized. (3) In June 2023, Trinity Rail Leasing 2023 LLC (“TRL-2023”), a limited purpose, indirect wholly-owned subsidiary of the Company owned through Trinity Industries Leasing Company ("TILC"), executed and designated a new interest rate swap derivative as a cash flow hedge to fix the Secured Overnight Financing Rate ("SOFR") component of the interest rate on a portion of the outstanding TRL-2023 term loan agreement ("TRL-2023 term loan"). |
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
| 2023 |  | 2022 |  | 2023 |  | 2022 |
| (in millions)
Expired hedges: |  |  |  |  |  |  |  |  |
2018 secured railcar equipment notes | $ | — |  |  | $ | — |  |  | $ | 0.1 |  |  | $ | 0.1 |  |  | $ | 0.2 |
TRIP Holdings warehouse loan | $ | — |  |  | $ | 0.3 |  |  | $ | 0.1 |  |  | $ | 1.0 |  |  | $ | — |
Tribute Rail secured railcar equipment notes | $ | 0.2 |  |  | $ | 0.1 |  |  | $ | 0.6 |  |  | $ | 0.2 |  |  | $ | 0.7 |
2017 promissory notes – interest rate cap | $ | (0.1) |  |  | $ | (0.1) |  |  | $ | (0.1) |  |  | $ | (0.1) |  |  | $ | (0.1) |
Open hedges (1): |  |  |  |  |  |  |  |  |
2017 promissory notes – interest rate swap | $ | (3.1) |  |  | $ | 0.3 |  |  | $ | (8.5) |  |  | $ | 5.3 |  |  | $ | (11.3) |
TRL-2023 term loan | $ | (1.0) |  |  | $ | — |  |  | $ | (1.2) |  |  | $ | — |  |  | $ | (4.2) |
(1) Based on the fair value of open hedges as of September 30, 2023. Foreign Currency Hedges Our exposure related to foreign currency transactions is currently hedged for up to a maximum of eighteen months. Information related to our foreign currency hedges are as follows:
|  |  |  | Included in accompanying balance sheet at September 30, 2023 |  | 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)
Instrument |  |  |  |  | 2023 |  | 2022 |  | 2023 |  | 2022 |
|  | (in millions)
Forward contracts |  | $ | 121.2 |  |  | $ | 0.4 |  |  | $ | (1.3) |  |  | $ | (2.2) |  |  | $ | (0.5) |  |  | $ | (6.1) |  |  | $ | (0.7) |  |  | $ | (0.7) |
Options |  | $ | 33.0 |  |  | $ | 0.1 |  |  | $ | 1.5 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1.5 |
(1) Based on the fair value of open hedges as of September 30, 2023. |
Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments
|  |  |  |  | Asset/(Liability) at September 30, 2023 |  | Effect on other, net (income) expense – increase/(decrease)
| Notional Amount |  | Interest Rate |  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  |  |  | 2023 |  | 2022 |  | 2023 |  | 2022
| ($ in millions)
Interest rate derivatives (1): |  |  |  |  |  |  |  |  |  |  |  |  |
TILC warehouse facility – interest rate cap | $ | 800.0 |  |  | 2.50 | % |  | $ | 12.4 |  |  | $ | (0.3) |  |  | $ | — |  |  | $ | (5.5) |  |  | $ | — |
TILC – interest rate cap | $ | 800.0 |  |  | 2.50 | % |  | $ | (12.4) |  |  | $ | 0.3 |  |  | $ | — |  |  | $ | 5.5 |  |  | $ | — |
(1) Comprised of back-to-back interest rate caps entered into with the same counterparty that offset and do not have a net effect on Trinity's consolidated earnings. These derivative contracts were entered into in connection with our risk management objectives. |
Level 1 |  |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [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, 2023 |  | December 31, 2022
| (in millions)
Assets: |  |  |
Cash equivalents | $ | 84.5 |  |  | $ | 29.8 |
Restricted cash | 152.7 |  |  | 214.7 |
Total assets | $ | 237.2 |  |  | $ | 244.5 |
Level 2 |  |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] |  |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] |
| Level 2 |
| September 30, 2023 |  | December 31, 2022 |
| (in millions) |
Assets (1): |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |
Interest rate hedges | $ | 26.1 |  |  | $ | 19.7 |  |
Foreign currency forward contracts | 0.4 |  |  | 2.0 |  |
Foreign currency options | 0.1 |  |  | — |  |
Derivatives not designated as hedging instruments: |  |  |  |
TILC warehouse facility – interest rate cap | 12.4 |  |  | 21.6 |  |
Total assets | $ | 39.0 |  |  | $ | 43.3 |  |
Liabilities (2): |  |  |  |
Derivatives not designated as hedging instruments: |  |  |  |
TILC – interest rate cap | $ | 12.4 |  |  | $ | 21.6 |  |
Total liabilities | $ | 12.4 |  |  | $ | 21.6 |  |
(1) Included in other assets in our Consolidated Balance Sheets. (2) Included in accrued liabilities in our Consolidated Balance Sheets. | [1],[2]
[1] | Included in other assets in our Consolidated Balance Sheets.
[2] | Included in other liabilities in our Consolidated Balance Sheets.

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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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