v3.25.1
Derivative Instruments and Fair Value Accounting
 3 Months Ended
Mar. 31, 2025
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. Derivative instruments that are not designated as hedges are accounted for by recording the realized and unrealized gains or losses on the derivative instrument in other, net (income) expense in our Consolidated Statements of Operations. 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.
Derivatives Designated as Hedging Instruments
Interest Rate Hedges
   
Included in accompanying balance sheet
at March 31, 2025
AOCI – loss/(income)
 Notional Amount
Interest Rate (1)
Asset/(Liability) Controlling InterestNoncontrolling Interest
 ($ in millions)
Expired hedges:
2018 secured railcar equipment notes$249.3 4.41 %$— $0.1 $— 
Tribute Rail secured railcar equipment notes $256.0 2.86 %$— $0.1 $0.1 
2017 promissory notes – interest rate cap$169.3 3.00 %$— $(0.1)$— 
Open hedges:
2017 promissory notes – interest rate swap$374.8 2.31 %$4.3 $(4.0)$— 
TRL-2023 term loan$256.5 3.79 %$(1.3)$1.3 $— 
TILC (2)
$280.0 3.72 %$(1.2)$1.2 $— 
(1) Weighted average fixed interest rate, except for the interest rate cap on the 2017 promissory notes.
(2) We entered into forward starting interest rate swaps to hedge a portion of the risk of potential interest rate increases in anticipation of a debt refinancing, which was completed on April 30, 2025. See Note 8 for further information. The balance at March 31, 2025 is comprised of a derivative liability of $2.1 million with one counterparty and a derivative asset of $0.9 million with a different counterparty.
 Effect on interest expense – increase/(decrease)
 Three Months Ended
March 31,		Expected effect during next twelve months
 20252024
 (in millions)
Expired hedges:
2018 secured railcar equipment notes
$— $— $0.1 
Tribute Rail secured railcar equipment notes$0.2 $0.2 $0.2 
2017 promissory notes – interest rate cap$— $— $(0.1)
Open hedges (1):
2017 promissory notes – interest rate swap$(1.9)$(3.1)$(4.0)
TRL-2023 term loan$(0.4)$(1.0)$(0.3)
TILC$— $— $0.2 
(1) Based on the fair value of open hedges as of March 31, 2025.
Foreign Currency Hedges
Our exposure related to foreign currency transactions is currently hedged for up to a maximum of nine months. Information related to our foreign currency hedges is as follows:
 
Included in 
accompanying balance
sheet at March 31, 2025
Effect on cost of revenues –
increase/(decrease)
Notional
Amount		Asset/ (Liability)AOCI –
loss/(income)		Three Months Ended
March 31,
Expected effect during next twelve months (1)
Instrument20252024
(in millions)
Forward contracts$79.8 $(2.9)$4.6 $4.7 $(1.5)$4.6 
Options$50.3 $0.4 $0.8 $— $0.3 $1.2 
(1) Based on the fair value of open hedges as of March 31, 2025.
Derivatives Not Designated as Hedging Instruments (1)
   
Asset/(Liability) at
March 31, 2025
Effect on other, net (income) expense – increase/(decrease)
Notional
Amount		Interest
Rate		Three Months Ended
March 31,
 20252024
 ($ in millions)
Interest rate derivatives – open:
TILC warehouse facility – interest rate cap$680.0 2.50 %$17.3 $2.9 $0.7 
TILC – interest rate cap (2)
$680.0 2.50 %$(17.3)$(2.9)$2.4 
Interest rate derivatives – expired (3):
TILC warehouse facility – interest rate cap$800.0 2.50 %$— $— $1.0 
TILC – interest rate cap$800.0 2.50 %$— $— $(1.0)
(1) Comprised of back-to-back interest rate caps entered into with the same counterparty in connection with our risk management objectives.
(2) The amount recorded to other, net (income) expense in our Consolidated Statements of Operations for the three months ended March 31, 2024 includes a fee of $3.1 million related to the execution of back-to-back interest rate caps associated with the Trinity Industries Leasing Company (“TILC”) warehouse loan facility.
(3) These interest rate caps matured and settled in 2024.
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 on a recurring basis as Level 1 in the fair value hierarchy are summarized below:
Level 1
 March 31, 2025December 31, 2024
(in millions)
Assets:
Cash equivalents$59.8 $209.6 
Restricted cash140.2 146.2 
Total assets$200.0 $355.8 
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 swaps and interest rate caps 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 on a recurring basis as Level 2 in the fair value hierarchy are summarized below:
Level 2
 March 31, 2025December 31, 2024
(in millions)
Assets (1):
Derivatives designated as hedging instruments:
Interest rate hedges$5.2 $10.4 
Foreign currency hedges0.4 0.4 
Derivatives not designated as hedging instruments:
Interest rate derivatives17.3 23.3 
Total assets$22.9 $34.1 
Liabilities (2):
Derivatives designated as hedging instruments:
Interest rate hedges$3.4 $— 
Foreign currency hedges2.9 9.5 
Derivatives not designated as hedging instruments:
Interest rate derivatives17.3 23.3 
Total liabilities$23.6 $32.8 
(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 March 31, 2025 and December 31, 2024, we have no assets or liabilities measured on a recurring basis as Level 3 in the fair value hierarchy.
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.