TRN filing — read by section

Item 8. Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data. 
 
 
 Trinity Industries, Inc. 
 
 
 Index to Financial Statements 
 
 Page 
 Report of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) 
 53 
 
 Consolidated Statements of Operations for the years ended December 31, 2023, 2022, and 2021 
 55 
 
 Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2023, 2022, and 2021 
 56 
 
 Consolidated Balance Sheets as of December 31, 202 3 and 202 2 
 57 
 
 Consolidated Statements of Cash Flows for the years ended December 31, 202 3 , 202 2 , and 202 1 
 58 
 
 Consolidated Statements of Stockholders' Equity for the years ended December 31, 202 3 , 202 2 , and 202 1 
 59 
 
 Notes to Consolidated Financial Statements 
 60 
 

 
 
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 Table of Contents 

 
 
 Report of Independent Registered Public Accounting Firm 
 
 
 To the Stockholders and the Board of Directors of Trinity Industries, Inc. 
 Opinion on the Financial Statements 
 We have audited the accompanying consolidated balance sheets of Trinity Industries, Inc. and Subsidiaries (the Company) as of December 31, 2023 and 2022, the related consolidated statements of operations, comprehensive income (loss), cash flows and stockholders' equity for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with U.S. generally accepted accounting principles. 
 We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 22, 2024 expressed an unqualified opinion thereon. 
 Basis for Opinion 
 These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 
 We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. 
 Critical Audit Matter 
 The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 
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 Recognition of deferred tax assets and liabilities 
 
 Description of the Matter As more fully described in Note 10 to the consolidated financial statements, at December 31, 2023, the Company had gross deferred tax assets related to deductible temporary differences of $180.0 million, offset by a valuation allowance of $21.6 million, and deferred tax liabilities of $1,261.1 million. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and other tax attributes using currently enacted tax rates. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date. 
 Auditing the Company’s recognition of deferred tax assets and liabilities was complex because the Company is required to identify and evaluate differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases and other tax attributes based on enacted law and tax rates for multiple federal and state tax jurisdictions to determine the amount of such deferred tax assets and liabilities. In addition, a higher degree of auditor judgment was required to evaluate the Company’s deferred income tax provision as a result of the Company’s application of tax law in each jurisdiction. 
 
 How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of the Company’s controls that address the risks of material misstatement relating to the recognition of deferred tax assets and liabilities, including controls over the completeness and accuracy of permanent and temporary differences, the valuation of deferred income tax assets and liabilities and changes in tax laws and regulations that may impact the Company’s deferred income tax provision. 
 Among other audit procedures performed, we (i) obtained an understanding of the Company’s overall tax structure, including any changes in the Company’s tax structure that occurred during the year as well as any changes in tax law that could impact the recognition of deferred tax assets and liabilities; (ii) utilized tax resources with appropriate knowledge of jurisdictional laws and regulations; (iii) tested the completeness and accuracy of deferred tax assets and liabilities based on enacted law and tax rates for the appropriate tax jurisdictions to determine the amount of such deferred tax assets and liabilities; and (iv) tested the completeness and accuracy of the underlying data. In addition, we assessed the reasonableness of the Company’s deferred income tax provision based on interpretation of tax law in each jurisdiction in which the Company operates. 
 

 
 
 /s/ ERNST & YOUNG LLP 
 We have served as the Company's auditor since 1958. 
 Dallas, Texas 
 February 22, 2024 
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 Trinity Industries, Inc. and Subsidiaries 
 Consolidated Statements of Operations 
 
 Year Ended December 31, 
 2023 2022 2021 
 (in millions, except per share amounts) 
 Revenues: 
 Manufacturing $ 2,113.3 $ 1,207.5 $ 781.4 
 Leasing 870.0 769.8 734.6 
 2,983.3 1,977.3 1,516.0 
 Operating costs: 
 Cost of revenues: 
 Manufacturing 1,988.0 1,186.6 769.9 
 Leasing 468.2 423.0 391.6 
 2,456.2 1,609.6 1,161.5 
 Selling, engineering, and administrative expenses: 
 Manufacturing 35.9 34.2 32.5 
 Leasing 56.6 54.0 50.6 
 Other 109.4 97.2 96.5 
 201.9 185.4 179.6 
 Gains on dispositions of property: 
 Lease portfolio sales 82.8 127.5 54.1 
 Other 6.8 25.2 24.1 
 89.6 152.7 78.2 
 
 Restructuring activities, net ( 2.2 ) 1.0 ( 3.7 ) 
 Total operating profit 417.0 334.0 256.8 
 Other (income) expense: 
 Interest expense, net 265.5 207.6 191.4 
 Loss on extinguishment of debt — 1.5 11.7 
 Pension plan settlement — — ( 0.6 ) 
 Other, net 2.5 ( 1.6 ) ( 0.9 ) 
 268.0 207.5 201.6 
 Income from continuing operations before income taxes 149.0 126.5 55.2 
 Provision (benefit) for income taxes: 
 Current 50.5 12.9 2.8 
 Deferred ( 41.5 ) 14.7 13.1 
 9.0 27.6 15.9 
 Income from continuing operations 140.0 98.9 39.3 
 Income (loss) from discontinued operations, net of provision (benefit) for income taxes of $( 3.6 ), $( 1.1 ), and $ 3.5 
 ( 13.4 ) ( 20.3 ) 11.1 
 Gain (loss) on sale of discontinued operations, net of provision (benefit) for income taxes of $ — , $( 1.4 ), and $ 51.9 
 — ( 5.7 ) 131.4 
 Net income 126.6 72.9 181.8 
 Net income (loss) attributable to noncontrolling interest 20.6 12.8 ( 0.2 ) 
 Net income attributable to Trinity Industries, Inc. $ 106.0 $ 60.1 $ 182.0 
 
 Basic earnings per common share: 
 Income from continuing operations $ 1.47 $ 1.05 $ 0.39 
 Income (loss) from discontinued operations ( 0.16 ) ( 0.32 ) 1.40 
 Basic net income attributable to Trinity Industries Inc. $ 1.31 $ 0.73 $ 1.79 
 Diluted earnings per common share: 
 Income from continuing operations $ 1.43 $ 1.02 $ 0.38 
 Income (loss) from discontinued operations ( 0.16 ) ( 0.31 ) 1.37 
 Diluted net income attributable to Trinity Industries Inc. $ 1.27 $ 0.71 $ 1.75 
 Weighted average number of shares outstanding: 
 Basic 81.2 81.9 101.5 
 Diluted 83.4 84.2 103.8 

 See accompanying notes to Consolidated Financial Statements. 
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 Trinity Industries, Inc. and Subsidiaries 
 Consolidated Statements of Comprehensive Income 
 
 Year Ended December 31, 
 2023 2022 2021 
 (in millions) 
 Net income $ 126.6 $ 72.9 $ 181.8 
 Other comprehensive income (loss): 
 Derivative financial instruments: 
 Unrealized gains arising during the period, net of tax expense of $ 3.3 , $ 9.2 , and $ 2.8 
 10.6 29.3 9.2 
 Reclassification adjustments for (gains) losses included in net income, net of tax benefit of $ 7.4 , $ 0.8 , and $ 1.2 
 ( 26.1 ) 3.5 5.4 
 Defined benefit plans: 
 
 
 Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $( 0.1 ), $ 0.5 , and $ 0.1 
 ( 0.3 ) 2.1 0.3 
 
 Amortization of net actuarial losses, net of tax benefit of $ — , $ 0.1 , and $ 0.1 
 0.1 0.2 0.2 
 Currency translation adjustments: 
 Reclassification adjustments for losses included in discontinued operations, net of tax benefit of $ — , $ — , and $ — 
 — 1.3 — 
 ( 15.7 ) 36.4 15.1 
 Comprehensive income 110.9 109.3 196.9 
 Less: comprehensive income attributable to noncontrolling interest 13.6 12.5 1.0 
 Comprehensive income attributable to Trinity Industries, Inc. $ 97.3 $ 96.8 $ 195.9 

 See accompanying notes to Consolidated Financial Statements. 
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 Trinity Industries, Inc. and Subsidiaries 
 Consolidated Balance Sheets 
 
 December 31, 2023 December 31, 2022 
 (in millions) 
 ASSETS 
 Cash and cash equivalents $ 105.7 $ 79.6 
 Receivables, net of allowance of $ 15.9 and $ 16.0 
 363.5 323.5 
 Income tax receivable 5.2 7.8 
 Inventories: 
 Raw materials and supplies 419.4 423.6 
 Work in process 142.4 164.2 
 Finished goods 122.5 41.6 
 684.3 629.4 
 Restricted cash, including partially-owned subsidiaries of $ 30.6 and $ 74.4 
 129.4 214.7 
 Property, plant, and equipment, at cost, including partially-owned subsidiaries of $ 1,922.5 and $ 1,917.6 
 9,539.6 9,272.6 
 Less accumulated depreciation, including partially-owned subsidiaries of $ 644.7 and $ 599.0 
 ( 2,534.8 ) ( 2,385.8 ) 
 7,004.8 6,886.8 
 Goodwill 221.5 195.9 
 
 Other assets 392.1 386.6 
 Total assets $ 8,906.5 $ 8,724.3 
 
 LIABILITIES AND STOCKHOLDERS' EQUITY 
 Accounts payable $ 305.3 $ 287.5 
 Accrued liabilities 302.3 261.0 
 Debt: 
 Recourse 794.6 624.1 
 Non-recourse: 
 Wholly-owned subsidiaries 3,819.2 3,800.7 
 Partially-owned subsidiaries 1,140.4 1,182.8 
 5,754.2 5,607.6 
 Deferred income taxes 1,103.5 1,134.7 
 
 Other liabilities 165.7 163.9 
 Total liabilities 7,631.0 7,454.7 
 
 Preferred stock – 1.5 shares authorized and unissued 
 — — 
 Common stock – shares authorized at December 31, 2023 and 2022 – 400.0 ; shares issued and outstanding at December 31, 2023 – 81.8 ; at December 31, 2022 – 81.1 
 0.8 0.8 
 Capital in excess of par value 15.4 — 
 Retained earnings 1,010.5 992.6 
 Accumulated other comprehensive income 11.0 19.7 
 Treasury stock – shares at December 31, 2023 – 0.0 ; at December 31, 2022 – 0.0 
 ( 0.6 ) ( 0.7 ) 
 1,037.1 1,012.4 
 Noncontrolling interest 238.4 257.2 
 Total stockholders' equity 1,275.5 1,269.6 
 Total liabilities and stockholders' equity $ 8,906.5 $ 8,724.3 

 See accompanying notes to Consolidated Financial Statements. 
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 Trinity Industries, Inc. and Subsidiaries 
 Consolidated Statements of Cash Flows 
 
 Year Ended December 31, 
 2023 2022 2021 
 (in millions) 
 Operating activities: 
 Net income $ 126.6 $ 72.9 $ 181.8 
 (Income) loss from discontinued operations, net of income taxes 13.4 20.3 ( 11.1 ) 
 (Gain) loss on sale of discontinued operations, net of income taxes — 5.7 ( 131.4 ) 
 Adjustments to reconcile net income to net cash provided by operating activities − continuing operations: 
 Depreciation and amortization 293.2 276.4 265.7 
 Stock-based compensation expense 22.7 22.5 20.7 
 Provision (benefit) for deferred income taxes ( 41.5 ) 14.7 13.1 
 Net gains on lease portfolio sales ( 82.8 ) ( 126.2 ) ( 54.1 ) 
 Gains on dispositions of property and other assets ( 0.5 ) ( 18.0 ) ( 20.0 ) 
 Gains on insurance recoveries from property damage ( 6.3 ) ( 7.5 ) ( 7.8 ) 
 
 
 Non-cash impact of restructuring activities ( 2.2 ) — — 
 Non-cash interest expense 12.7 13.2 13.7 
 Loss on extinguishment of debt — 1.5 11.7 
 Other ( 5.7 ) ( 5.3 ) ( 3.1 ) 
 Changes in operating assets and liabilities: 
 (Increase) decrease in receivables ( 22.0 ) ( 92.0 ) ( 64.3 ) 
 (Increase) decrease in income tax receivable — ( 2.4 ) 440.4 
 (Increase) decrease in inventories ( 54.9 ) ( 193.4 ) ( 147.7 ) 
 (Increase) decrease in other assets ( 0.6 ) ( 11.5 ) 11.4 
 Increase (decrease) in accounts payable 2.2 78.4 59.2 
 Increase (decrease) in accrued liabilities 53.2 ( 37.2 ) 36.5 
 Increase (decrease) in other liabilities 1.5 ( 2.9 ) 0.9 
 Net cash provided by operating activities – continuing operations 309.0 9.2 615.6 
 Net cash used in operating activities – discontinued operations ( 13.4 ) ( 22.0 ) ( 3.8 ) 
 Net cash provided by (used in) operating activities 295.6 ( 12.8 ) 611.8 
 Investing activities: 
 
 Proceeds from dispositions of property and other assets 19.9 44.0 40.5 
 Proceeds from lease portfolio sales 381.8 750.7 454.3 
 Capital expenditures – lease fleet ( 668.8 ) ( 928.8 ) ( 547.2 ) 
 Capital expenditures – manufacturing and other ( 41.3 ) ( 38.0 ) ( 23.6 ) 
 Acquisitions, net of cash acquired ( 62.2 ) ( 80.4 ) ( 16.6 ) 
 Proceeds from insurance recoveries 5.1 10.0 9.5 
 Equity investments ( 1.1 ) ( 15.5 ) 0.1 
 Other 3.6 — — 
 Net cash used in investing activities – continuing operations ( 363.0 ) ( 258.0 ) ( 83.0 ) 
 Proceeds (payments) related to sale of discontinued operations — ( 2.7 ) 364.7 
 Net cash used in investing activities – discontinued operations — — ( 5.4 ) 
 Net cash provided by (used in) investing activities ( 363.0 ) ( 260.7 ) 276.3 
 Financing activities: 
 Payments to retire debt ( 1,518.9 ) ( 1,578.5 ) ( 2,315.8 ) 
 Proceeds from issuance of debt 1,652.7 2,000.6 2,444.1 
 
 
 Shares repurchased — ( 51.8 ) ( 833.4 ) 
 Dividends paid to common shareholders ( 86.0 ) ( 76.9 ) ( 88.5 ) 
 Purchase of shares to satisfy employee tax on vested stock ( 7.2 ) ( 5.7 ) ( 9.3 ) 
 Distributions to noncontrolling interest ( 32.4 ) ( 22.3 ) ( 11.2 ) 
 
 
 
 Net cash provided by (used in) financing activities 8.2 265.4 ( 814.1 ) 
 Net increase (decrease) in cash, cash equivalents, and restricted cash ( 59.2 ) ( 8.1 ) 74.0 
 Cash, cash equivalents, and restricted cash at beginning of period 294.3 302.4 228.4 
 Cash, cash equivalents, and restricted cash at end of period $ 235.1 $ 294.3 $ 302.4 
 
 Supplemental disclosure of cash flow information: 
 Interest paid $ 246.2 $ 190.5 $ 178.4 
 Income tax (payments), net of refunds $ ( 42.4 ) $ ( 19.3 ) $ 435.7 
 
 

 See accompanying notes to Consolidated Financial Statements. 
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 Trinity Industries, Inc. and Subsidiaries 
 Consolidated Statements of Stockholders' Equity 
 
 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, 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) — — — 182.0 — — — 182.0 ( 0.2 ) 181.8 
 Other comprehensive income — — — — 13.9 — — 13.9 1.2 15.1 
 Cash dividends declared on common stock (1) 
 — — — ( 84.3 ) — — — ( 84.3 ) — ( 84.3 ) 
 Distributions to noncontrolling interest — — — — — — — — ( 11.2 ) ( 11.2 ) 
 Stock-based compensation expense — — 20.7 — — — — 20.7 — 20.7 
 Settlement of share-based awards, net 1.2 — 4.3 ( 0.5 ) — ( 0.5 ) ( 13.5 ) ( 9.7 ) — ( 9.7 ) 
 Shares repurchased — — — — — ( 25.2 ) ( 706.6 ) ( 706.6 ) — ( 706.6 ) 
 Accelerated share repurchase agreement — — ( 25.0 ) — — ( 3.3 ) ( 100.0 ) ( 125.0 ) — ( 125.0 ) 
 Retirement of treasury stock ( 29.1 ) ( 0.3 ) — ( 820.0 ) — 29.1 820.3 — — — 
 
 
 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 — — — 60.1 — — — 60.1 12.8 72.9 
 Other comprehensive income (loss) — — — — 36.7 — — 36.7 ( 0.3 ) 36.4 
 Cash dividends declared on common stock (1) 
 — — — ( 78.9 ) — — — ( 78.9 ) — ( 78.9 ) 
 Distributions to noncontrolling interest — — — — — — — — ( 22.3 ) ( 22.3 ) 
 Stock-based compensation expense — — 22.5 — — — — 22.5 — 22.5 
 Settlement of share-based awards, net 0.9 — 1.1 — — ( 0.3 ) ( 7.1 ) ( 6.0 ) — ( 6.0 ) 
 Shares repurchased — — — — — ( 2.0 ) ( 51.8 ) ( 51.8 ) — ( 51.8 ) 
 Accelerated share repurchase agreement — — 25.0 — — ( 0.8 ) ( 25.0 ) — — — 
 Retirement of treasury stock ( 3.1 ) — ( 48.6 ) ( 35.2 ) — 3.1 83.8 — — — 
 
 Balances at December 31, 2022 
 81.1 $ 0.8 $ — $ 992.6 $ 19.7 — $ ( 0.7 ) $ 1,012.4 $ 257.2 $ 1,269.6 
 Net income — — — 106.0 — — — 106.0 20.6 126.6 
 Other comprehensive loss — — — — ( 8.7 ) — — ( 8.7 ) ( 7.0 ) ( 15.7 ) 
 Cash dividends declared on common stock (1) 
 — — — ( 88.1 ) — — — ( 88.1 ) — ( 88.1 ) 
 Distributions to noncontrolling interest — — — — — — — — ( 32.4 ) ( 32.4 ) 
 Stock-based compensation expense — — 22.7 — — — — 22.7 — 22.7 
 Settlement of share-based awards, net 1.0 — 0.7 — — ( 0.3 ) ( 7.9 ) ( 7.2 ) — ( 7.2 ) 
 
 
 Retirement of treasury stock ( 0.3 ) — ( 8.0 ) — — 0.3 8.0 — — — 
 
 Balances at December 31, 2023 
 81.8 $ 0.8 $ 15.4 $ 1,010.5 $ 11.0 — $ ( 0.6 ) $ 1,037.1 $ 238.4 $ 1,275.5 

 (1) Dividends of $ 1.06 , $ 0.95 , and $ 0.86 per common share for the years ended December 31, 2023, 2022, and 2021, respectively. 
 See accompanying notes to Consolidated Financial Statements. 
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 Trinity Industries, Inc. and Subsidiaries 
 Notes to Consolidated Financial Statements 
 
 Note 1. Summary of Significant Accounting Policies 
 Principles of Consolidation 
 The financial statements of Trinity Industries, Inc. and Subsidiaries (“Trinity,” “Company,” “we,” “our,” or "us") include the accounts of our wholly-owned subsidiaries and our partially-owned subsidiaries, TRIP Rail Holdings LLC ("TRIP Holdings"), RIV 2013 Rail Holdings LLC ("RIV 2013"), and Trinity Global Ventures Limited ("Trinity Global Ventures"), in which we have a controlling interest. All significant intercompany accounts and transactions have been eliminated. Certain prior year balances have been reclassified to conform to the 2023 presentation. 
 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. A final working capital adjustment was recorded in 2022. 
 We concluded that the sale of THP represented a strategic shift that would 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 2023 Annual Report on Form 10-K. 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. For all contracts with customers, we evaluate whether we are the principal (i.e., report revenues on a gross basis) or agent (i.e., report revenues on a net basis). Generally, we are the principal in our contracts with customers and report revenues on a gross basis as we control the product or service before it is transferred to a customer. We act as an agent for a small number of service contracts and report those revenues on a net basis as we do not control the services before they are provided to the customer. Payments for our products and services are generally due within normal commercial terms. The following is a description of the 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 December 31, 2023 and 2022. 
 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 Accounting Standards Codification ("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 act as an agent for certain logistics services and report these revenues on a net basis as we do not control the services before they are provided to the customer. 
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 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 changes to input costs; 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 $ 21.4 million and $ 2.9 million as of December 31, 2023 and 2022, 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. 
 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. 
 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 December 31, 2023 and the percentage of the outstanding performance obligations as of December 31, 2023 expected to be delivered during 2024: 
 
 Unsatisfied performance obligations at December 31, 2023 
 
 Total
Amount Percent expected to be delivered in 2024 
 
 (in millions) 
 Rail Products Group: 
 
 New railcars: 
 External customers $ 2,896.5 
 Leasing Group 
 304.4 
 $ 3,200.9 53.4 % 
 Sustainable railcar conversions $ 81.9 100.0 % 
 Maintenance services $ 6.6 100.0 % 
 
 Railcar Leasing and Management Services Group $ 65.0 27.0 % 

 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 choose 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. 
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 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 thirteen 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 December 31, 2023, we had no material finance leases in which we were the lessee. Certain of our operating leases include lease incentives, which reduce the right-of-use asset and are recognized on a straight-line basis over the lease term. 
 The following table summarizes the impact of our operating leases on our Consolidated Financial Statements (in millions, except lease term and discount rate): 
 
 Year Ended
December 31, 
 2023 2022 2021 
 Consolidated Statements of Operations 
 Operating lease expense $ 19.5 $ 18.2 $ 15.2 
 Short-term lease expense $ — $ 0.4 $ 0.2 
 
 Consolidated Statements of Cash Flows 
 Cash flows from operating activities $ 19.5 $ 18.2 $ 15.2 
 Right-of-use assets recognized in exchange for new lease liabilities $ 24.1 $ 28.8 $ 23.0 
 
 December 31, 2023 December 31, 2022 
 Consolidated Balance Sheets 
 Right-of-use assets (1) 
 $ 100.6 $ 93.1 
 Lease liabilities (2) 
 $ 118.2 $ 114.8 
 Weighted average remaining lease term 9.3 years 9.9 years 
 Weighted average discount rate 3.6 % 2.8 % 

 (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 
 2024 $ 10.1 $ 10.0 $ 20.1 
 2025 8.8 9.0 17.8 
 2026 8.0 8.3 16.3 
 2027 7.0 8.1 15.1 
 2028 4.3 7.3 11.6 
 Thereafter 6.7 51.4 58.1 
 Total operating lease payments $ 44.9 $ 94.1 $ 139.0 
 Less: Present value adjustment ( 20.8 ) 
 
 Total operating lease liabilities $ 118.2 

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 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 December 31, 2023, 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 in our Consolidated Statements of Operations: 
 
 Year Ended
December 31, 
 2023 2022 2021 
 Operating lease revenues $ 731.5 $ 679.4 $ 652.5 
 Variable operating lease revenues $ 68.7 $ 60.3 $ 54.2 
 
 Interest income on sales-type lease receivables $ 0.7 $ 0.7 $ — 
 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) : 
 
 2024 $ 682.3 
 2025 556.5 
 2026 435.3 
 2027 318.4 
 2028 184.9 
 Thereafter 320.0 
 Total $ 2,497.4 

 (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): 
 
 2024 $ 1.1 
 2025 1.1 
 2026 1.1 
 2027 1.1 
 2028 1.1 
 Thereafter 9.0 
 Total 14.5 
 Less: Unearned interest income ( 4.3 ) 
 Net investment in sales-type leases (1) 
 $ 10.2 

 (1) Included in other assets in our Consolidated Balance Sheets. 
 Income Taxes 
 The liability method is used to account for income taxes. Deferred income taxes represent the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases and other attributes using currently enacted tax laws and tax rates. Valuation allowances reduce deferred tax assets to an amount that will more likely than not be realized. 
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 We regularly evaluate the likelihood of realization of tax benefits derived from positions we have taken in various federal and state filings after consideration of all relevant facts, circumstances, and available information. For those tax positions that are deemed more likely than not to be sustained, we recognize the benefit we believe is cumulatively greater than 50% likely to be realized. To the extent that we were to prevail in matters for which accruals have been established or be required to pay amounts in excess of recorded reserves, the effective tax rate in a given financial statement period could be materially impacted. 
 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, highly-rated money market funds, 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 the allowance for credit losses. During the year ended December 31, 2023, we recognized approximately $ 3.1 million of credit loss expense and approximately $ 0.6 million of recoveries and other adjustments, and wrote off $ 0.3 million related to our trade receivables that are in scope of ASC 326, Financial Instruments – Credit Losses, bringing the allowance for credit losses balance from $ 10.6 million at December 31, 2022 to $ 12.8 million at December 31, 2023. This balance excludes the general reserve for operating lease receivables that is permitted under ASC 450, Contingencies . 
 Inventories 
 Inventories are valued at the lower of cost or net realizable value. Cost is determined principally on the first in first out method. Work in process and finished goods include material, labor, and overhead. 
 Property, Plant, and Equipment 
 Property, plant, and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. The costs of ordinary maintenance and repair are charged to operating costs. The estimated useful lives are as follows: 
 
 Buildings and improvements 5 – 30 years 
 
 Leasehold improvements Generally over the term of the lease 
 Machinery and equipment Generally 3 – 15 years 
 
 Information systems hardware and software 3 – 5 years 
 
 Railcars in our lease fleet Generally 35 – 40 years 
 

 Impairment of Long-lived Assets 
 We periodically evaluate the carrying value of long-lived assets for potential impairment. The carrying value of long-lived assets is considered impaired when their carrying value is not recoverable through undiscounted future cash flows and the fair value of the assets is less than their carrying value. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risks involved or market quotes as available. Impairment losses on long-lived assets held for sale are determined in a similar manner, except that fair values are reduced by the estimated cost to dispose of the assets. We did not identify any indicators of impairment during the years ended December 31, 2023, 2022, or 2021. 
 Assets Held for Sale 
 We classify our facilities as assets held for sale at the time management commits to a plan to sell the facility, and the sale is expected to be completed within one year. Assets held for sale are recorded at fair value, less any costs to sell, and are no longer subject to depreciation. As of December 31, 2023 and 2022, assets held for sale totaling $ 2.1 million and $ 6.6 million, respectively, are included in the other assets line of our Consolidated Balance Sheets. 
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 Goodwill and Intangible Assets 
 Goodwill is required to be tested for impairment at least annually, or on an interim basis if events or circumstances change indicating that the carrying amount of the goodwill might be impaired. Indefinite-lived intangible assets are not subject to amortization but are required to be evaluated for impairment at least annually. We have historically performed our annual impairment tests of goodwill and indefinite-lived intangible assets as of December 31 of each year. During 2023, we voluntarily changed the date of our annual impairment tests from December 31 to October 1. This voluntary change in accounting is preferable under the circumstances as it better aligns with our annual forecasting and strategic planning process, which is a key component of the annual impairment test models. Further, the change will provide management with additional time to perform and complete its annual impairment assessment. This voluntary change did not result in a delay, acceleration, or avoidance of an impairment charge. The change in measurement date has been applied prospectively as of October 1, 2023 as retrospective application is deemed impracticable due to the inability to objectively determine the assumptions and significant estimates used in prior periods without the benefit of hindsight. As such, the annual impairment tests of goodwill and indefinite-lived intangible assets for the year ended December 31, 2023 were performed as of October 1, 2023. 
 The quantitative goodwill impairment test is a two-step process, with step one requiring the comparison of the reporting unit's estimated fair value with the carrying amount of its net assets. If necessary, step two of the impairment test determines the amount of goodwill impairment to be recorded when the reporting unit's recorded net assets exceed its fair value. Impairment is assessed at the reporting unit level by applying a fair value-based test for each unit with recorded goodwill. The estimates and judgments that most significantly affect the fair value calculations are assumptions, consisting of Level 3 inputs, related to revenue and operating profit results, discount rates, terminal growth rates, and exit multiples. As of October 1, 2023 and December 31, 2022, we completed our annual impairment tests of goodwill at the reporting unit level and determined that no impairment charges were necessary. 
 If the carrying value of an individual indefinite-lived intangible asset exceeds its fair value, such individual indefinite-lived intangible asset is impaired by the amount of the excess. As of December 31, 2023 and 2022, indefinite-lived intangible assets, which are comprised of trade names of recently acquired businesses, totaled $ 11.2 million and $ 4.4 million. As of October 1, 2023 and December 31, 2022, we completed our evaluations of each indefinite-lived intangible asset and determined that no impairment charges were necessary. 
 The net book value of our finite-lived intangible assets totaled $ 95.5 million and $ 74.6 million as of December 31, 2023 and 2022, respectively, which are amortized over their estimated useful lives, ranging from one year to fifteen years . We evaluate the carrying value of our finite-lived intangible assets for potential impairment when events and circumstances indicate that the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. We did not identify any impairment indicators during the years ended December 31, 2023, 2022, or 2021. 
 See Note 2 and Note 8 for further information regarding the changes in the carrying amounts of our goodwill and intangible assets related to acquisition activity for the years ended December 31, 2023 and 2022. 
 Restricted Cash 
 Restricted cash consists of cash and cash equivalents held either as collateral for our non-recourse debt and lease obligations. As such, they are restricted in use. 
 Investments in Affiliates 
 We continuously evaluate our investments in and other contractual arrangements with third-party entities to determine whether they are considered a variable interest entity ("VIE") and, if so, whether we are considered the primary beneficiary. Consolidation is required for VIEs in which we are the primary beneficiary. We have determined that we are the primary beneficiary for TRIP Holdings, RIV 2013, and Trinity Global Ventures. At December 31, 2023, the carrying value of our investments in these entities totaled $ 126.2 million. See Note 5 for further information regarding investments in which we have a controlling interest. 
 Insurance 
 We are effectively self-insured for workers' compensation and employee health care claims. A third-party administrator is used to process claims. We accrue our workers' compensation and group medical liabilities based upon independent actuarial studies. These liabilities are calculated based upon loss development factors, which contemplate a number of variables, including claims history and expected trends. As of December 31, 2023, our liabilities associated with workers' compensation and group medical insurance were $ 35.0 million and $ 4.5 million, respectively, and are included in the accrued liabilities line of our Consolidated Balance Sheets. 
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 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 years ended December 31, 2023, 2022, and 2021 are as follows: 
 
 Year Ended December 31, 
 2023 2022 2021 
 (in millions) 
 Beginning balance $ 3.3 $ 3.1 $ 11.3 
 Warranty costs incurred ( 2.5 ) ( 2.7 ) ( 7.4 ) 
 Warranty originations and revisions 3.3 3.2 0.1 
 Warranty expirations ( 0.8 ) ( 0.3 ) ( 0.9 ) 
 Ending balance $ 3.3 $ 3.3 $ 3.1 

 Foreign Currency Transactions 
 The functional currency of our Mexico operations is the United States dollar. Certain transactions in Mexico occur in currencies other than the United States dollar. The remeasurement impact of foreign currency fluctuations on these transactions is recorded in other, net (income) expense in our Consolidated Statements of Operations. 
 Other Comprehensive Income (Loss) 
 Other comprehensive net income (loss) consists of foreign currency translation adjustments, unrealized gains and losses on our derivative financial instruments, and the net actuarial gains and losses of our defined benefit plans, the sum of which, together with net income (loss), constitutes comprehensive income (loss). See Note 12. All components are shown net of tax. 
 Recent Accounting Pronouncements 
 Adopted in 2023 
 ASU 2022-04 – In September 2022, the Financial Accounting Standards Board ("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. 
 We adopted ASU 2022-04 effective January 1, 2023. The adoption did not have a significant impact on our Consolidated Financial Statements. In cooperation with a participating financial institution, we facilitate a voluntary supply chain finance ("SCF") program for several of our suppliers. We negotiate payment terms with suppliers that are in line with average industry terms. We have not pledged any assets as security or provided other forms of guarantees to the financial institution. Under the SCF program, participating suppliers may choose to sell, at a discounted price, receivables due from us to the financial institution, at the sole discretion of both the suppliers and the financial institution, prior to the invoices’ scheduled due dates. The payment terms that we negotiate with all suppliers are consistent regardless of whether the supplier chooses to participate in the SCF program for a particular invoice. The SCF program is administered by a third-party financial institution, and our responsibility is limited to making payments based on the terms originally negotiated with participating suppliers, regardless of whether such suppliers sell receivables to the financial institution. 
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 Amounts due to our participating suppliers in the SCF program are included in accounts payable in our Consolidated Balance Sheets. Payments made under the SCF program are reflected in net cash provided by operating activities from continuing operations in our Consolidated Statements of Cash Flows. The following is a summary of our outstanding obligations confirmed as valid under the supplier finance program for the year ended December 31, 2023: 
 
 Year Ended 
 December 31, 2023 
 (in millions) 
 Confirmed obligations outstanding at December 31, 2022 
 $ 22.8 
 Invoices confirmed 91.3 
 Confirmed invoices paid ( 95.8 ) 
 Confirmed obligations outstanding at December 31, 2023 
 $ 18.3 

 Not Yet Adopted 
 ASU 2023-07 – In November 2023, the FASB issued ASU No. 2023-07, "Improvements to Reportable Segment Disclosures," which improves disclosures about a public entity's reportable segments through enhanced disclosures about significant segment expenses. ASU 2023-07 requires disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), the amount for other segment items by reportable segment and a description of its composition, the title and position of the CODM, and interim period disclosure of all current ASC 280, Segment Reporting , annual disclosures about a reportable segment's profit or loss and assets. ASU 2023-07 is effective for public companies during annual reporting periods beginning after December 15, 2023 and during interim reporting periods beginning after December 15, 2024 and is to be adopted on a retrospective basis. Early adoption is permitted. We are currently evaluating the impact ASU 2023-07 will have on our segment reporting disclosures. 
 ASU 2023-09 – In December 2023, the FASB issued ASU No. 2023-09, "Improvements to Income Tax Disclosures," which enhances transparency and decision usefulness of income tax disclosures. ASU 2023-09 requires, on an annual basis, a tabular disclosure using specific categories in the rate reconciliation and providing additional information for reconciling items that meet a quantitative threshold, as well as the disaggregation of income taxes paid by federal, state, and foreign jurisdictions. ASU 2023-09 is effective for public companies during annual reporting periods beginning after December 15, 2024 on a prospective basis, with an option for retrospective application. Early adoption is permitted. We are currently evaluating the impact ASU-2023-09 will have on our income tax disclosures. 
 Management's Estimates 
 The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 
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 Note 2. Acquisitions and Discontinued Operations 
 Acquisitions 
 Acquisition of RSI Logistics 
 On March 8, 2023, we acquired RSI Logistics ("RSI"), a data-centric provider of proprietary software and logistics and terminal management solutions to the North American rail industry, for an aggregate purchase price of $ 72.1 million. 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. 
 Based on our preliminary purchase price allocation recorded during the first quarter of 2023, we recorded identifiable intangible assets of $ 37.4 million, goodwill of $ 26.3 million, and certain other assets, net of liabilities, totaling $ 8.4 million. The identifiable intangible assets, with the exception of the trade name, which is considered an indefinite-lived intangible asset, are being amortized over their estimated useful lives, ranging from 5 years to 15 years. During 2023, we made immaterial purchase price allocation adjustments to certain assets, which included a final working capital adjustment. Additionally, during the fourth quarter of 2023, we completed the sale of an intermodal transportation services business, which was a wholly-owned subsidiary of RSI, for a sales price of approximately $ 4.4 million. The disposal group included identifiable intangible assets of $ 1.6 million, goodwill of $ 1.2 million, and certain other assets, net of liabilities, totaling $ 1.6 million, resulting in final goodwill attributable to the RSI acquisition of $ 25.6 million as of December 31, 2023. 
 Acquisition of Holden America 
 On December 30, 2022, we acquired Holden America, a manufacturer of market-leading multi-level vehicle securement and protection systems, gravity-outlet gates, and gate accessories for freight rail in North America. The aggregate purchase price, when combined with the potential additional future consideration described below, resulted in total consideration of $ 87.1 million. 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. Based on our preliminary purchase price allocation recorded during the year ended December 31, 2022, we recorded identifiable intangible assets of $ 45.9 million, goodwill of $ 36.4 million, and certain other immaterial assets and liabilities. The identifiable intangible assets, with the exception of the trade name, which is considered an indefinite-lived intangible asset, are being amortized over their estimated useful lives, ranging from 1 year to 15 years. During 2023, we made immaterial adjustments to certain assets and liabilities to finalize our purchase price allocation. 
 The purchase agreement included minimum additional consideration of $ 10.0 million, which is payable in installments of $ 5.0 million per year for the next two years. The purchase agreement also contained a provision whereby additional consideration could become payable based on the achievement of certain revenue targets, up to a maximum payout of $ 10.0 million. The total additional consideration, which is included in other liabilities in our Consolidated Balance Sheets, had an initial estimated fair value of $ 15.7 million as of December 31, 2022 and is remeasured at each reporting period using Level 3 inputs. As of December 31, 2023, the estimated fair value of the additional consideration was $ 20.0 million. The change in fair value is included in selling, engineering, and administrative expenses in our Consolidated Statements of Operations for the year ended December 31, 2023. 
 Other Acquisitions 
 In June 2022, the Leasing Group acquired 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 Sheets 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 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. 
 See Note 8 for further information regarding goodwill and intangible assets recorded as a result of these acquisitions. 
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 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. 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 2023 Annual Report on Form 10-K. 
 In connection with the sale, the Company 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. Expenses related to these retained obligations incurred during the years ended December 31, 2023 and 2022 were, and similar expenses that may be incurred in the future will likewise be, reported in discontinued operations. See Note 15 for further information regarding obligations retained in connection with the THP sale. 
 The following is a summary of operating results related to the THP business included in income (loss) from discontinued operations for the years ended December 31, 2023, 2022, and 2021: 
 
 Year Ended December 31, 
 2023 2022 2021 
 (in millions) 
 Revenues $ — $ — $ 296.5 
 Cost of revenues — — 216.6 
 Selling, engineering, and administrative expenses 17.0 21.4 65.3 
 
 
 Income (loss) from discontinued operations before income taxes ( 17.0 ) ( 21.4 ) 14.6 
 Provision (benefit) for income taxes ( 3.6 ) ( 1.1 ) 2.7 
 Income (loss) from discontinued operations, net of income taxes $ ( 13.4 ) $ ( 20.3 ) $ 11.9 

 Additionally, during the year ended December 31, 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. During the year ended December 31, 2021, we recorded a gain on sale of discontinued operations of $ 183.3 million ($ 131.4 million, net of income taxes). 
 Other discontinued operations 
 In addition to the THP activities disclosed above, results include certain amounts related to businesses previously disposed, including $ 1.3 million of loss on sale of discontinued operations, net of income taxes for the year ended December 31, 2022, and a loss of $ 0.8 million included in income (loss) from discontinued operations, net of income taxes for the year ended December 31, 2021. 
 
 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. 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 9 for a description of our debt instruments. 
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 Derivatives Designated as Hedging Instruments 
 Interest Rate Hedges 
 
 Included in accompanying balance sheet 
 at December 31, 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 % $ — $ 0.2 $ — 
 TRIP Holdings warehouse loan (2) 
 $ 788.5 3.60 % $ — $ — $ — 
 Tribute Rail secured railcar equipment notes $ 256.0 2.86 % $ — $ 0.4 $ 0.6 
 2017 promissory notes – interest rate cap 
 $ 169.3 3.00 % $ — $ ( 0.2 ) $ — 
 Open hedges: 
 2017 promissory notes – interest rate swap $ 408.1 2.31 % $ 13.1 $ ( 12.5 ) $ — 
 TRL-2023 term loan (3) 
 $ 267.6 3.79 % $ ( 2.5 ) $ 2.7 $ — 

 (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"). 
 
 
 
 Effect on interest expense – increase/(decrease) 
 Year Ended December 31, Expected effect during next twelve months 
 2023 2022 2021 
 (in millions) 
 Expired hedges: 
 
 
 2018 secured railcar equipment notes 
 $ 0.2 $ 0.2 $ 0.2 $ 0.2 
 TRIP Holdings warehouse loan $ 0.1 $ 1.2 $ 1.8 $ — 
 TRIP Master Funding secured railcar equipment notes 
 $ — $ — $ 0.1 $ — 
 Tribute Rail secured railcar equipment notes $ 0.7 $ 0.4 $ — $ 0.7 
 2017 promissory notes – interest rate cap 
 $ (0.1) $ (0.1) $ (0.1) $ ( 0.1 ) 
 Open hedges (1) : 
 
 2017 promissory notes – interest rate swap 
 $ (11.7) $ 4.0 $ 12.3 $ ( 11.7 ) 
 TRL-2023 term loan $ (2.2) $ — $ — $ ( 2.7 ) 

 (1) Based on the fair value of open hedges as of December 31, 2023 . 
 
 
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 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 is as follows: 
 
 Included in 
 accompanying balance 
 sheet at December 31, 2023 
 Effect on cost of revenues – increase/(decrease) 
 Notional
Amount Asset/(Liability) AOCI –
loss/(income) Year Ended December 31, Expected effect during next twelve months (1) 
 
 Instrument 2023 2022 2021 
 (in millions) 
 Forward contracts $ 125.3 $ 5.8 $ ( 6.5 ) $ (7.1) $ (1.4) $ (7.7) $ ( 5.8 ) 
 Options $ 16.4 $ 1.0 $ ( 0.4 ) $ 1.4 $ — $ — $ ( 0.4 ) 

 (1) Based on the fair value of open hedges as of December 31, 2023. 
 
 
 Derivatives Not Designated as Hedging Instruments 
 
 Asset/ 
 (Liability) at 
 December 31, 2023 
 Effect on other, net (income) expense – increase/(decrease) 
 Notional
Amount Interest
Rate Year Ended 
December 31, 
 2023 2022 2021 
 ($ in millions) 
 Interest rate derivatives (1) : 
 
 TILC warehouse facility – interest rate cap $ 800.0 2.50 % $ 6.6 $ (5.4) $ (1.6) $ — 
 TILC – interest rate cap $ 800.0 2.50 % $ ( 6.6 ) $ 5.4 $ 1.6 $ — 

 (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. 
 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 
 December 31, 2023 December 31, 2022 
 (in millions) 
 Assets: 
 Cash equivalents $ 78.7 $ 29.8 
 Restricted cash 129.4 214.7 
 Total assets $ 208.1 $ 244.5 

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 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 
 December 31, 2023 December 31, 2022 
 (in millions) 
 Assets (1) : 
 
 Derivatives designated as hedging instruments: 
 Interest rate hedges $ 13.1 $ 19.7 
 Foreign currency forward contracts 5.8 2.0 
 Foreign currency options 1.0 — 
 Derivatives not designated as hedging instruments: 
 TILC warehouse facility – interest rate cap 6.6 21.6 
 Total assets $ 26.5 $ 43.3 
 
 Liabilities (2) : 
 
 Derivatives designated as hedging instruments: 
 Interest rate hedges $ 2.5 $ — 
 
 Derivatives not designated as hedging instruments: 
 TILC – interest rate cap 6.6 21.6 
 Total liabilities $ 9.1 $ 21.6 

 (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 December 31, 2023 and 2022, we have no assets or liabilities measured on a recurring basis as Level 3 in the fair value hierarchy, except as described in Note 2. 
 See Note 2 for more information regarding non-recurring fair value measurements involving Level 3 inputs resulting from acquisition activity. See Note 9 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, as well as other railcar logistics products and 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 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. 
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 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). 
 
 Year Ended December 31, 2023 
 Railcar Leasing and Management Services Group Rail Products Group Corporate and other Eliminations – Lease Subsidiary 
 Eliminations – Other 
 Consolidated Total 
 External revenue $ 870.0 $ 2,113.3 $ — $ — $ — $ 2,983.3 
 Intersegment revenue 0.9 589.7 — ( 589.7 ) ( 0.9 ) — 
 Total revenues $ 870.9 $ 2,703.0 $ — $ ( 589.7 ) $ ( 0.9 ) $ 2,983.3 
 
 
 Depreciation & amortization $ 244.6 $ 43.7 $ 4.9 $ — $ — $ 293.2 
 Capital expenditures $ 671.5 $ 37.1 $ 1.5 $ — $ — $ 710.1 

 
 Year Ended December 31, 2022 
 Railcar Leasing and Management Services Group Rail Products Group Corporate and other Eliminations – Lease Subsidiary 
 Eliminations – Other 
 Consolidated Total 
 External revenue $ 769.8 $ 1,207.5 $ — $ — $ — $ 1,977.3 
 Intersegment revenue 0.8 867.2 — ( 867.2 ) ( 0.8 ) — 
 Total revenues $ 770.6 $ 2,074.7 $ — $ ( 867.2 ) $ ( 0.8 ) $ 1,977.3 
 
 
 Depreciation & amortization $ 236.4 $ 34.8 $ 5.2 $ — $ — $ 276.4 
 Capital expenditures $ 928.8 $ 35.7 $ 2.3 $ — $ — $ 966.8 

 
 Year Ended December 31, 2021 
 Railcar Leasing and Management Services Group Rail Products Group Corporate and other Eliminations – Lease Subsidiary 
 Eliminations – Other 
 Consolidated Total 
 External revenue $ 734.6 $ 781.4 $ — $ — $ — $ 1,516.0 
 Intersegment revenue 0.7 483.4 — ( 478.5 ) ( 5.6 ) — 
 Total revenues $ 735.3 $ 1,264.8 $ — $ ( 478.5 ) $ ( 5.6 ) $ 1,516.0 
 
 
 Depreciation & amortization $ 226.0 $ 33.6 $ 6.1 $ — $ — $ 265.7 
 Capital expenditures $ 547.2 $ 21.3 $ 2.3 $ — $ — $ 570.8 

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 The reconciliation of segment operating profit to consolidated net income is as follows: 
 
 Year Ended December 31, 
 2023 2022 2021 
 (in millions) 
 Operating profit: 
 Railcar Leasing and Management Services Group $ 428.5 $ 423.3 $ 350.9 
 Rail Products Group 129.4 59.1 4.7 
 Segment Totals 557.9 482.4 355.6 
 Corporate and other ( 108.3 ) ( 80.8 ) ( 84.1 ) 
 
 Restructuring activities, net 2.2 ( 1.0 ) 3.7 
 Eliminations – Lease Subsidiary ( 36.1 ) ( 65.2 ) ( 17.2 ) 
 Eliminations – Other 1.3 ( 1.4 ) ( 1.2 ) 
 Consolidated operating profit 417.0 334.0 256.8 
 Other (income) expense 268.0 207.5 201.6 
 Provision (benefit) for income taxes 9.0 27.6 15.9 
 Income (loss) from discontinued operations, net of income taxes ( 13.4 ) ( 20.3 ) 11.1 
 Gain (loss) on sale of discontinued operations, net of income taxes — ( 5.7 ) 131.4 
 Net income $ 126.6 $ 72.9 $ 181.8 

 Total assets for these segments is shown in the table below. 
 
 December 31, 2023 December 31, 2022 
 (in millions) 
 Railcar Leasing and Management Services Group $ 7,895.7 $ 7,779.9 
 Rail Products Group 1,474.7 1,440.5 
 Segment Totals 9,370.4 9,220.4 
 Corporate and other 286.3 267.2 
 
 Eliminations – Lease Subsidiary ( 750.2 ) ( 763.3 ) 
 
 Total assets $ 8,906.5 $ 8,724.3 

 Corporate and other assets are composed of cash and cash equivalents, short-term marketable securities, notes receivable, certain property, plant, and equipment, and other assets. 
 We operate principally in North America. Our foreign operations are primarily located in Mexico. Revenues and operating profit for our Mexico operations for the years ended December 31, 2023, 2022, and 2021 were not significant in relation to the Consolidated Financial Statements. Total assets for our Mexico operations as of December 31, 2023 and 2022 were $ 590.0 million and $ 571.7 million, respectively. Total long-lived assets for our Mexico operations as of December 31, 2023 and 2022 were $ 96.1 million and $ 96.3 million, respectively. 
 One customer in the Rail Products Group comprised approximately 13 %, 17 %, and 22 % of our consolidated revenues during the years ended December 31, 2023, 2022, and 2021, respectively. 
 Effective January 1, 2024, the Company modified its organizational structure to better leverage our maintenance services capabilities to support lease fleet optimization and to grow our services and parts businesses. The new structure will result in a change to our reportable segments beginning in 2024. In connection with this organizational update, we will align the maintenance services business, which is currently reported in the Rail Products Group, to be presented within our leasing business. This change aligns with the way in which our CODM will assess performance and allocate resources. Consequently, beginning January 1, 2024, we will report our operating results in two reportable segments: (1) Railcar Leasing and Services Group, formerly the Railcar Leasing and Management Services Group, and (2) Rail Products Group. These changes will have no impact to our previously reported consolidated results of operations, financial position, or cash flows. All prior period segment results will be recast to reflect these changes and present results on a comparable basis in future filings, beginning with our Quarterly Report on Form 10-Q for the three months ended March 31, 2024. 
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 Note 5. Partially-Owned Subsidiaries 
 Investments in Leasing Subsidiaries 
 Through our wholly-owned subsidiary, 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 December 31, 2023, the carrying value of our investment in TRIP Holdings and RIV 2013 totaled $ 124.0 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 LLC ("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 9 for additional information regarding the debt of TRIP Holdings and RIV 2013 and their respective subsidiaries. 
 Other Investment in Consolidated Affiliate 
 In February 2023, the Company and a third party formed Trinity Global Ventures to deliver railcars and provide warranty support services in Saudi Arabia. Trinity Global Ventures is owned 51.0 % by Trinity Rail Group, LLC ("Trinity Rail Group"), a wholly-owned subsidiary of the Company, and 49.0 % by the third party. Upon consideration under the VIE model of ASC 810, Consolidation , Trinity has concluded that Trinity Global Ventures meets the definition of a VIE. Trinity Rail Group has a variable interest in Trinity Global Ventures arising from its 51.0 % equity ownership position. We determined that Trinity is the primary beneficiary and therefore consolidates this entity as we have the power to direct the activities of the entity that most significantly impact its economic performance. At December 31, 2023, the carrying value of our investment in Trinity Global Ventures totaled $ 2.2 million, which is eliminated in consolidation. 
 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 is currently owned 87.1 % by Wafra Funds and 12.9 % by TILC. To date, TILC has sold 6,460 railcars and related leases to Signal Rail for an aggregate sales price of $ 598.6 million. TILC services all railcars owned by Signal Rail. 
 Upon consideration under the 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. 
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 Our investment in Signal Rail is being accounted for under the equity method of accounting. At December 31, 2023, the carrying value of TILC’s equity investment in Signal Rail was $ 20.2 million, which is included in other assets in our Consolidated Balance Sheets. The carrying value of this investment represents our maximum exposure in Signal Rail. 
 
 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, as well as other railcar logistics products and services. Selected consolidated financial information for the Leasing Group is as follows: 
 
 December 31, 2023 
 Wholly-
Owned
Subsidiaries Partially-Owned Subsidiaries Total Leasing Group Eliminations – Lease Subsidiary (1) 
 Adjusted Total Leasing Group 
 (in millions) 
 Cash and cash equivalents $ 6.7 $ — $ 6.7 $ — $ 6.7 
 Accounts receivable 141.8 15.9 157.7 157.7 
 Property, plant, and equipment, net 5,940.7 1,473.2 7,413.9 ( 750.2 ) 6,663.7 
 Restricted cash 98.8 30.6 129.4 — 129.4 
 Other assets 186.2 1.8 188.0 — 188.0 
 Total assets $ 6,374.2 $ 1,521.5 $ 7,895.7 $ ( 750.2 ) $ 7,145.5 
 
 Accounts payable and accrued liabilities $ 131.8 $ 33.1 $ 164.9 $ — $ 164.9 
 Debt, net 3,819.2 1,140.4 4,959.6 — 4,959.6 
 Deferred income taxes 1,130.2 1.1 1,131.3 ( 171.9 ) 959.4 
 Other liabilities 40.2 — 40.2 — 40.2 
 Total liabilities 5,121.4 1,174.6 6,296.0 ( 171.9 ) 6,124.1 
 Noncontrolling interest — 236.3 236.3 — 236.3 
 Total Equity $ 1,252.8 $ 110.6 $ 1,363.4 $ ( 578.3 ) $ 785.1 

 
 December 31, 2022 
 Wholly-
Owned
Subsidiaries Partially-Owned Subsidiaries Total Leasing Group Eliminations – Lease Subsidiary (1) 
 Adjusted Total Leasing Group 
 (in millions) 
 Cash and cash equivalents $ 2.6 $ — $ 2.6 $ — $ 2.6 
 Accounts receivable 89.9 10.8 100.7 — 100.7 
 Property, plant, and equipment, net 5,788.1 1,521.3 7,309.4 ( 763.3 ) 6,546.1 
 Restricted cash 140.3 74.4 214.7 — 214.7 
 Other assets 150.3 2.2 152.5 — 152.5 
 Total assets $ 6,171.2 $ 1,608.7 $ 7,779.9 $ ( 763.3 ) $ 7,016.6 
 
 Accounts payable and accrued liabilities $ 109.7 $ 44.1 $ 153.8 $ — $ 153.8 
 Debt, net 3,800.7 1,182.8 4,983.5 — 4,983.5 
 Deferred income taxes 1,152.3 1.1 1,153.4 ( 173.1 ) 980.3 
 Other liabilities 38.8 — 38.8 — 38.8 
 Total liabilities 5,101.5 1,228.0 6,329.5 ( 173.1 ) 6,156.4 
 Noncontrolling interest — 257.2 257.2 — 257.2 
 Total Equity $ 1,069.7 $ 123.5 $ 1,193.2 $ ( 590.2 ) $ 603.0 

 (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 9 for a further discussion regarding our investment in our partially-owned leasing subsidiaries and the related indebtedness. 
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 Year Ended December 31, Percent Change 
 2023 2022 2021 2023 versus 2022 
 2022 versus 2021 
 
 ($ in millions) 
 Revenues: 
 Leasing and management $ 870.9 $ 770.6 $ 735.3 13.0 % 4.8 % 
 
 
 
 Operating profit (1) : 
 
 Leasing and management $ 345.7 $ 295.8 $ 296.8 16.9 % ( 0.3 ) % 
 Lease portfolio sales (2) 
 82.8 127.5 54.1 * * 
 
 Total operating profit $ 428.5 $ 423.3 $ 350.9 1.2 % 20.6 % 
 Total operating profit margin 49.2 % 54.9 % 47.7 % 
 
 Leasing and management operating profit margin 
 39.7 % 38.4 % 40.4 % 
 
 Selected expense information: 
 Depreciation and amortization (3) 
 $ 244.6 $ 236.4 $ 226.0 3.5 % 4.6 % 
 Maintenance and compliance $ 138.9 $ 113.4 $ 95.0 22.5 % 19.4 % 
 Rent and ad valorem taxes $ 15.9 $ 19.3 $ 18.4 ( 17.6 ) % 4.9 % 
 Selling, engineering, and administrative expenses 
 $ 56.6 $ 54.0 $ 50.6 4.8 % 6.7 % 
 Interest (4) 
 $ 227.2 $ 186.7 $ 181.6 21.7 % 2.8 % 

 * Not meaningful 
 (1) Operating profit includes: depreciation and amortization; 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 year ended December 31, 2022. 
 (3) Depreciation and amortization expense includes $ 5.6 million, $ 12.1 million, and $ 8.8 million for the years ended December 31, 2023, 2022, and 2021, respectively, related to the disposal of certain railcar components associated with our sustainable railcar conversion program. 
 (4) Interest expense for the year ended December 31, 2022 includes $ 1.5 million of loss on extinguishment of debt associated with the repayment of TRIP Railcar Co. LLC's outstanding term loan agreement. Interest expense for the year ended December 31, 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: 
 
 Year Ended December 31, 
 2023 2022 2021 
 ($ in millions) 
 Lease portfolio sales $ 381.8 $ 750.7 $ 460.7 
 Operating profit on lease portfolio sales (1) 
 $ 82.8 $ 126.2 $ 54.1 
 Operating profit margin on lease portfolio sales 21.7 % 16.8 % 11.7 % 

 (1) Excludes $ 1.3 million selling profit associated with sales-type leases for the year ended December 31, 2022. 
 
 
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 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: 
 
 2024 2025 2026 2027 2028 Thereafter Total 
 (in millions) 
 Future contractual minimum rental revenues $ 674.8 $ 551.4 $ 432.1 $ 317.5 $ 184.7 $ 320.0 $ 2,480.5 

 Debt. Wholly-owned subsidiaries. The Leasing Group’s debt at December 31, 2023 consisted primarily of non-recourse debt. As of December 31, 2023, Trinity’s wholly-owned subsidiaries included in the Leasing Group held equipment with a net book value of $ 5,553.4 million, which is pledged solely as collateral for Leasing Group debt held by those subsidiaries. The net book value of unpledged equipment at December 31, 2023 was $ 374.2 million. See Note 9 for more information regarding the Leasing Group's 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 December 31, 2023, TRIP Holdings held equipment with a net book value of $ 1,044.9 million, which is pledged solely as collateral for the TRIP Holdings' debt held by its subsidiaries. As of December 31, 2023, TRP-2021 equipment with a net book value of $ 428.3 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: 
 
 2024 2025 2026 2027 2028 Thereafter Total 
 (in millions) 
 Future operating lease obligations 
 $ 8.0 $ 7.2 $ 6.9 $ 6.5 $ 4.3 $ 6.7 $ 39.6 
 Future contractual minimum rental revenues 
 $ 7.5 $ 5.1 $ 3.2 $ 0.9 $ 0.2 $ — $ 16.9 

 Operating lease obligations totaling $ 0.9 million are guaranteed by Trinity Industries, Inc. and certain subsidiaries. The Leasing Group also has future amounts due for operating lease obligations related to rail terminal warehouse, office spaces, and equipment leases of approximately $ 5.3 million, which is excluded from the table above. 
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 Note 7. Property, Plant, and Equipment 
 The following table summarizes the components of property, plant, and equipment: 
 
 December 31, 2023 December 31, 2022 
 (in millions) 
 Manufacturing/Maintenance/Corporate: 
 Land $ 16.1 $ 15.7 
 Buildings and improvements 380.1 384.6 
 Machinery and other 391.6 405.5 
 Construction in progress 10.7 18.1 
 798.5 823.9 
 Less: accumulated depreciation ( 457.4 ) ( 483.2 ) 
 341.1 340.7 
 Leasing: 
 Wholly-owned subsidiaries: 
 Machinery and other 26.8 21.7 
 Equipment on lease 7,539.0 7,247.3 
 7,565.8 7,269.0 
 Less: accumulated depreciation ( 1,625.1 ) ( 1,480.9 ) 
 5,940.7 5,788.1 
 Partially-owned subsidiaries: 
 Equipment on lease 2,236.6 2,230.4 
 Less: accumulated depreciation ( 763.4 ) ( 709.1 ) 
 1,473.2 1,521.3 
 
 Deferred profit on railcars sold to the Leasing Group ( 1,061.3 ) ( 1,050.7 ) 
 Less: accumulated amortization 311.1 287.4 
 ( 750.2 ) ( 763.3 ) 
 $ 7,004.8 $ 6,886.8 

 We lease certain equipment and facilities under operating leases. See Note 1 for future operating lease obligations on non-Leasing Group leases. See Note 1 and Note 6 for information related to the lease agreements, future operating lease obligations, and future minimum rental revenues associated with the Leasing Group. 
 See Note 1 for more information regarding assets classified as held for sale as of December 31, 2023 and 2022. 
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 Note 8. Goodwill and Intangible Assets 
 Goodwill 
 The changes in the net carrying amount of goodwill by reportable segment are as follows: 
 
 Railcar Leasing and Management Services Group Rail Products Group 
 Total 
 (in millions) 
 As of December 31, 2022 
 $ 7.1 $ 188.8 $ 195.9 
 Acquisitions and purchase price allocation adjustments (Note 2) 
 26.8 — 26.8 
 Divestitures (Note 2) 
 ( 1.2 ) — ( 1.2 ) 
 As of December 31, 2023 
 $ 32.7 $ 188.8 $ 221.5 

 Intangible Assets 
 A summary of our intangible assets, which are included in other assets in our Consolidated Balance Sheets, is as follows: 
 
 December 31, 2023 December 31, 2022 
 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount 
 (in years) (in millions) 
 Indefinite-lived intangible assets: 
 Trade names * $ 11.2 $ — $ 11.2 $ 4.4 $ — $ 4.4 
 Finite-lived intangible assets: 
 Customer relationships & backlog 14.3 53.6 ( 5.8 ) 47.8 35.4 — 35.4 
 Patents, developed technology, and other 9.3 36.6 ( 9.4 ) 27.2 25.9 ( 5.4 ) 20.5 
 Lease-related intangibles 10.8 35.9 ( 15.4 ) 20.5 31.6 ( 12.9 ) 18.7 
 Total finite-lived intangible assets 126.1 ( 30.6 ) 95.5 92.9 ( 18.3 ) 74.6 
 Total intangible assets $ 137.3 $ ( 30.6 ) $ 106.7 $ 97.3 $ ( 18.3 ) $ 79.0 

 * Not subject to amortization 
 During the years ended December 31, 2023, 2022, and 2021, amortization expense related to our finite-lived intangible assets totaled $ 13.0 million, $ 5.5 million, and $ 4.6 million, respectively, which is included in cost of revenues in our Consolidated Statements of Operations. As of December 31, 2023, expected amortization expense related to our finite-lived intangible assets for the next five years is as follows: 
 
 Expected Amortization Expense 
 (in millions) 
 2024 $ 10.4 
 2025 $ 9.8 
 2026 $ 9.7 
 2027 $ 9.1 
 2028 $ 6.6 

 
 
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 Note 9. Debt 
 The carrying amounts and estimated fair values of our debt are as follows: 
 
 December 31, 2023 December 31, 2022 
 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 
 (in millions) 
 Corporate – Recourse: 
 Revolving credit facility $ — $ — $ 225.0 $ 225.0 
 Senior notes due 2024, net of unamortized discount of $ 0.1 and $ 0.1 
 399.9 394.5 399.9 387.5 
 Senior notes due 2028 400.0 417.6 — — 
 799.9 812.1 624.9 612.5 
 Less: unamortized debt issuance costs ( 5.3 ) ( 0.8 ) 
 Total recourse debt 794.6 624.1 
 
 Leasing – Non-recourse: 
 Wholly-owned subsidiaries: 
 2009 secured railcar equipment notes 99.7 100.3 115.8 116.6 
 2010 secured railcar equipment notes 181.2 176.5 204.1 197.1 
 2017 promissory notes, net of unamortized discount of $ 3.5 and $ 5.6 
 673.7 673.7 716.0 716.0 
 2018 secured railcar equipment notes, net of unamortized discount of $ 0.1 and $ 0.1 
 378.0 355.2 398.9 360.9 
 2019 secured railcar equipment notes, net of unamortized discount of $ 0.1 and $ 0.2 
 748.5 709.4 786.0 716.9 
 2020 secured railcar equipments notes, net of unamortized discount of $ — and $ — 
 311.3 277.9 330.4 284.6 
 2021 secured railcar equipment notes, net of unamortized discount of $ — and $ — 
 295.3 256.9 307.7 253.9 
 2022 secured railcar equipment notes, net of unamortized discount of $ — and $ — 
 232.7 220.2 241.1 239.7 
 TRL-2023 term loan 334.5 334.5 — — 
 TILC warehouse facility 529.3 529.3 721.8 721.8 
 Other equipment financing 52.3 52.3 — — 
 3,836.5 3,686.2 3,821.8 3,607.5 
 Less: unamortized debt issuance costs ( 17.3 ) ( 21.1 ) 
 3,819.2 3,800.7 
 Partially-owned subsidiaries: 
 TRP-2021 secured railcar equipment notes, net of unamortized discount of $ — and $ — 
 335.1 296.3 347.0 291.8 
 Triumph Rail secured railcar equipment notes, net of unamortized discount of $ 0.1 and $ 0.2 
 501.7 447.6 523.0 451.4 
 Tribute Rail secured railcar equipment notes, net of unamortized discount of $ — and $ 0.1 
 311.0 300.1 322.6 281.1 
 
 1,147.8 1,044.0 1,192.6 1,024.3 
 Less: unamortized debt issuance costs ( 7.4 ) ( 9.8 ) 
 1,140.4 1,182.8 
 Total non–recourse debt 4,959.6 4,983.5 
 Total debt $ 5,754.2 $ 5,542.3 $ 5,607.6 $ 5,244.3 

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 The estimated fair values of our 7.75 % senior notes due 2028 ("Senior Notes due 2028") and our 4.55 % senior notes due 2024 ("Senior Notes due 2024") are 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, TRL-2023 term loan, and TILC warehouse facility approximate fair value because the interest rate adjusts to the market interest rate. As of December 31, 2023, we evaluated the fair value of the other equipment financing liability using Level 3 inputs and determined that the fair value approximates the carrying value. 
 Corporate – Recourse 
 Revolving Credit Facility – We have a $ 600.0 million unsecured corporate revolving credit facility. In March 2023, we amended our revolving credit facility to increase the total facility commitment from $ 450.0 million to $ 600.0 million, increase the maximum leverage ratio to provide additional flexibility, modify the limitations on restricted payments, and allow up to $ 100.0 million of annual dividends on the Company's common stock. We incurred $ 0.7 million in costs related to the amendment, which will be amortized to interest expense through the maturity date. The maturity date for the revolving credit facility is the earlier of (i) July 25, 2027 or (ii) July 2, 2024 if our Senior Notes due 2024 have not been repaid in full by that date. 
 During the year ended December 31, 2023, we had total borrowings of $ 515.0 million and total repayments of $ 740.0 million under the revolving credit facility. Additionally, we had outstanding letters of credit issued in an aggregate amount of $ 17.4 million, leaving $ 582.6 million available for borrowing as of December 31, 2023. The majority of our outstanding letters of credit as of December 31, 2023 are scheduled to expire in October 2024. Our letters of credit obligations support performance bonds related to certain railcar orders. The revolving credit facility bears interest at a variable rate of SOFR plus (1) a benchmark adjustment of 10 basis points and (2) a facility margin of 1.75 %, for an all-in interest rate of 7.17 % as of December 31, 2023. A commitment fee accrues on the average daily unused portion of the revolving credit facility at the rate of 0.175 % to 0.40 % ( 0.25 % as of December 31, 2023). 
 The revolving credit facility places certain restrictions on the Company and its subsidiaries, including, but not limited to, the ability to incur additional indebtedness and guarantee indebtedness; pay dividends or make other distributions or repurchase or redeem capital stock; prepay, redeem, or repurchase certain debt; make loans and investments; sell assets; incur liens on assets; enter into transactions with affiliates; and consolidate, merge, or liquidate. Additionally, the revolving credit facility requires the maintenance of ratios related to minimum interest coverage for the leasing and manufacturing operations and maximum leverage. As of December 31, 2023, we were in compliance with all such financial covenants. Borrowings under the credit facility are guaranteed by certain of our 100%-owned subsidiaries. 
 Senior Notes Due 2024 – In September 2014, we issued $ 400.0 million aggregate principal amount of 4.55 % senior notes due October 2024. Interest on the Senior Notes due 2024 is payable semiannually commencing April 1, 2015. The Senior Notes due 2024 rank senior to existing and future subordinated debt and rank equal to existing and future senior indebtedness, including our revolving credit facility. The Senior Notes due 2024 are subordinated to all our existing and future secured debt to the extent of the value of the collateral securing such indebtedness. The Senior Notes due 2024 contain covenants that limit our ability and/or certain subsidiaries' ability to create or permit to exist certain liens; enter into sale and leaseback transactions; and consolidate, merge, or transfer all or substantially all of our assets. Our Senior Notes due 2024 are fully and unconditionally and jointly and severally guaranteed by each of Trinity’s domestic subsidiaries that is a guarantor under our revolving credit facility. See "Liquidity and Capital Resources" in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of this Annual Report on Form 10-K. 
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 Senior Notes Due 2028 – In June 2023, we issued $ 400.0 million aggregate principal amount of 7.75 % senior notes due July 2028. These notes were issued through a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. Interest on the Senior Notes due 2028 is payable semiannually commencing January 15, 2024. The Senior Notes due 2028 rank senior to existing and future subordinated debt and rank equal to existing and future senior indebtedness, including our Senior Notes due 2024 and our revolving credit facility. The Senior Notes due 2028 are subordinated to all our existing and future secured debt to the extent of the value of the collateral securing such indebtedness. The Senior Notes due 2028 contain covenants that limit our ability and/or certain subsidiaries' ability to create or permit to exist certain liens; enter into sale and leaseback transactions; and consolidate, merge, or transfer all or substantially all of our assets. Our Senior Notes due 2028 are fully and unconditionally and jointly and severally guaranteed by each of our domestic subsidiaries that is a guarantor under our revolving credit facility. We incurred $ 5.5 million in debt issuance costs, which will be amortized to interest expense over the term of the Senior Notes due 2028. Net proceeds received from the issuance were used to repay outstanding borrowings under our revolving credit facility and to pay related fees, costs, premiums, and expenses in connection with the issuance. We intend to use the remainder of the net proceeds for general corporate purposes, which may include repayment of other debt, including the Senior Notes due 2024. 
 Wholly-owned leasing subsidiaries 
 TRL VII – In November 2009, Trinity Rail Leasing VII LLC, a Delaware limited liability company (“TRL VII”) and a limited purpose, indirect wholly-owned subsidiary of the Company owned through TILC, issued $ 238.3 million in aggregate principal amount of Secured Railcar Equipment Notes, Series 2009-1 (the “2009 Notes”), of which $ 99.7 million was outstanding as of December 31, 2023. The 2009 Notes were issued pursuant to a Master Indenture, dated November 5, 2009 between TRL VII and Wilmington Trust Company, as indenture trustee. The 2009 Notes bear interest at a fixed rate of 6.66 % per annum, are payable monthly, and have a final maturity date of November 16, 2039. The 2009 Notes are obligations of TRL VII 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 acquired and owned by TRL VII. 
 TRL-2010 – In October 2010, Trinity Rail Leasing 2010 LLC, a Delaware limited liability company ("TRL-2010") and a limited purpose, indirect wholly-owned subsidiary of the Company owned through TILC, issued $ 369.2 million in aggregate principal amount of Secured Railcar Equipment Notes, Series 2010-1 (the “TRL-2010 Notes"), of which $ 181.2 million was outstanding as of December 31, 2023. The TRL-2010 Notes were issued pursuant to an Indenture, dated as of October 25, 2010 between TRL-2010 and Wilmington Trust Company, as indenture trustee. The TRL-2010 Notes bear interest at a fixed rate of 5.19 %, are payable monthly, and have a stated final maturity date of October 16, 2040. The TRL-2010 Notes are obligations of TRL-2010 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 acquired and owned by TRL-2010. 
 TILC Warehouse Loan Facility – TILC has a $ 1.0 billion warehouse loan facility, which was established to finance railcars owned by TILC. During the year ended December 31, 2023, we had total borrowings of $ 354.1 million and total repayments of $ 546.6 million under the TILC warehouse loan facility. Of the remaining unused facility amount of $ 470.7 million, $ 218.0 million was available as of December 31, 2023 based on the amount of warehouse-eligible, unpledged equipment. The warehouse loan facility is a non-recourse obligation and is secured by a portfolio of railcars and operating leases, certain cash reserves, and other assets acquired and owned by the warehouse loan facility trust. The principal and interest of this indebtedness are paid from the cash flows of the underlying leases. 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 1.85 %, for an all-in interest rate of 7.31 % at December 31, 2023. 
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 TRL-2017 – Trinity Rail Leasing 2017, LLC, a Delaware limited liability company ("TRL-2017") and a limited purpose, indirect wholly-owned subsidiary of the Company owned through TILC, previously issued $ 302.4 million of promissory notes (the "Original 2017 Promissory Notes") due May 15, 2024. In November 2018, the Original 2017 Promissory Notes were extended through November 8, 2025 at an increased aggregate amount of $ 663.0 million. In July 2020, TRL-2017 issued an additional $ 225.0 million of promissory notes pursuant to a provision contained in its existing Amended and Restated Loan Agreement dated November 8, 2018 (together with previously-issued promissory notes, the "2017 Promissory Notes"). As of December 31, 2023, $ 677.2 million of the 2017 Promissory Notes was outstanding. In February 2023, we amended the Amended and Restated Loan Agreement and the TRL-2017 interest rate swap agreements to transition the benchmark rate from LIBOR to one-month term SOFR plus a benchmark adjustment. The Company elected to apply the optional accounting expedient under ASC 848, Reference Rate Reform , for hedging relationships affected by reference rate reform. The 2017 Promissory Notes bear interest at one-month term SOFR plus (1) a benchmark adjustment of 11 basis points and (2) a facility margin of 1.50 %, for an all-in interest rate of 6.98 % as of December 31, 2023, and are payable monthly. The 2017 Promissory Notes are obligations of TRL-2017 and are non-recourse to Trinity. The 2017 Promissory Notes are secured by a portfolio of railcars and operating leases thereon, certain cash reserves, and other assets acquired and owned by TRL-2017. 
 TRL-2018 – In June 2018, Trinity Rail Leasing 2018, LLC, a Delaware limited liability company ("TRL-2018") and a limited purpose, indirect wholly-owned subsidiary of the Company owned through TILC, issued $ 482.5 million in Secured Railcar Equipment Notes (the "TRL-2018 Secured Railcar Equipment Notes"). The TRL-2018 Secured Railcar Equipment Notes consisted of two classes of notes with (i) an aggregate principal amount of $ 200.0 million of TRL-2018's Series 2018-1 Class A-1 Secured Railcar Equipment Notes (the "TRL-2018 Class A-1 Notes"), and (ii) an aggregate principal amount of $ 282.5 million of TRL-2018's Series 2018-1 Class A-2 Secured Railcar Equipment Notes (the “TRL-2018 Class A-2 Notes”). The TRL-2018 Secured Railcar Equipment Notes were issued pursuant to a Master Indenture, dated June 20, 2018 between TRL-2018 and Wilmington Trust Company, as indenture trustee. In October 2020, TRL-2018 issued $ 155.5 million of Series 2020-1 Class A Secured Railcar Equipment Notes (the “2020-1 Notes”) (the TRL-2018 Class A-1 Notes, the TRL-2018 Class A-2 Notes, and the 2020-1 Notes are, collectively, the “TRL-2018 Notes”) under the existing indenture. In a separate transaction during October 2020, TRL-2018 redeemed its TRL-2018 Class A-1 Notes, of which $ 153.1 million was outstanding at the redemption date. The fixed interest rate for these notes was 3.82 % per annum. 
 The TRL-2018 Class A-2 Notes, of which $ 282.5 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 4.62 %, are payable monthly, and have a stated final maturity date of June 17, 2048. The 2020-1 Notes, of which $ 95.6 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 1.96 %, are payable monthly, and have a stated final maturity date of October 17, 2050. The TRL-2018 Notes are obligations of TRL-2018 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 acquired and owned by TRL-2018. 
 TRL-2019 – In April 2019, Trinity Rail Leasing 2019 LLC, a Delaware limited liability company ("TRL-2019") and a limited purpose, indirect wholly-owned subsidiary of the Company owned through TILC, issued $ 528.3 million in Secured Railcar Equipment Notes (the "TRL-2019 Notes"). The TRL-2019 Notes were issued pursuant to a Master Indenture, dated as of April 10, 2019 between TRL-2019 and U.S. Bank National Association, as indenture trustee. The TRL-2019 Notes, of which $ 425.3 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 3.82 %, are payable monthly, and have a stated final maturity date of April 17, 2049. The TRL-2019 Notes are obligations of TRL-2019 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 acquired and owned by TRL-2019. 
 In October 2019, TRL-2019 issued an additional $ 386.5 million in Secured Railcar Equipment Notes (the "TRL-2019-2 Notes"). The TRL-2019-2 Notes consisted of two classes of notes with (i) an aggregate principal amount of $ 106.9 million of TRL-2019's Series 2019-2 Class A-1 Secured Railcar Equipment Notes (the "TRL-2019 Class A-1 Notes"), and (ii) an aggregate principal amount of $ 279.6 million of TRL-2019's Series 2019-2 Class A-2 Secured Railcar Equipment Notes (the “TRL-2019 Class A-2 Notes”). The TRL-2019-2 Notes were issued pursuant to a Master Indenture, dated April 10, 2019 between TRL-2019 and U.S. Bank National Association, as indenture trustee, as supplemented by a Series 2019-2 Supplement dated as of October 17, 2019. The TRL-2019 Class A-1 Notes, of which $ 43.7 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 2.39 %, are payable monthly, and have a stated final maturity date of October 17, 2049. The TRL-2019 Class A-2 Notes, of which $ 279.6 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 3.10 %, are payable monthly, and have a stated final maturity date of October 17, 2049. The TRL-2019-2 Notes are obligations of TRL-2019 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 acquired and owned by TRL-2019. 
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 TRL-2020 – In November 2020, Trinity Rail Leasing 2020 LLC, a Delaware limited liability company (“TRL-2020”) and a limited purpose, indirect wholly-owned subsidiary of the Company owned through TILC, issued an aggregate principal amount of (i) $ 110.0 million of TRL-2020’s Series 2020-2 Class A-1 Secured Railcar Equipment Notes (the “TRL-2020 Class A-1 Notes”), (ii) $ 240.3 million of TRL-2020’s Series 2020-2 Class A-2 Secured Railcar Equipment Notes (the “TRL-2020 Class A-2 Notes”), and (iii) $ 20.5 million of TRL-2020’s Series 2020-2 Class B Secured Railcar Equipment Notes (the “TRL-2020 Class B Notes”) (the TRL-2020 Class A-1 Notes, the TRL-2020 Class A-2 Notes, and the TRL-2020 Class B Notes are, collectively, the “TRL-2020 Notes”). The TRL-2020 Notes were issued pursuant to a Master Indenture, dated November 19, 2020 between TRL-2020 and U.S. Bank National Association, as indenture trustee, as supplemented by a Series 2020-2 Supplement dated November 19, 2020. The TRL-2020 Class A-1 Notes, of which $ 50.5 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 1.83 %. The TRL-2020 Class A-2 Notes, of which $ 240.3 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 2.56 %. The TRL-2020 Class B Notes, of which $ 20.5 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 3.69 %. The TRL-2020 Notes are payable monthly, and have a stated final maturity date of November 19, 2050. The TRL-2020 Notes are obligations of TRL-2020 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 acquired and owned by TRL-2020. 
 TRL-2021 – In June 2021, Trinity Rail Leasing 2021 LLC, a Delaware limited liability company ("TRL-2021") and a limited purpose, indirect wholly-owned subsidiary of the Company owned through TILC, issued an aggregate principal amount of (i) $ 305.2 million of its Series 2021-1 Class A Green Secured Railcar Equipment Notes (the "TRL-2021 Class A Notes") and (ii) $ 19.8 million of its Series 2021-1 Class B Green Secured Railcar Equipment Notes (the "TRL-2021 Class B Notes") (the TRL-2021 Class A Notes and the TRL-2021 Class B Notes are, collectively, the “TRL-2021 Notes”). The TRL-2021 Class A Notes, of which $ 275.5 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 2.26 %. The TRL-2021 Class B Notes, of which $ 19.8 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 3.08 %. The TRL-2021 Notes are payable monthly, and have a stated final maturity date of July 19, 2051. The TRL-2021 Notes are obligations of TRL-2021 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 acquired and owned by TRL-2021. 
 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, of which $ 232.7 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 4.55 %, are payable monthly, and have a stated final maturity date of May 20, 2052. 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 acquired and owned by TRL-2022. 
 TRL-2023 Term Loan – In June 2023, TRL-2023 entered into a $ 340.0 million term loan agreement. The TRL-2023 term loan was established to finance railcars and related operating leases thereon purchased by TRL-2023 from TILC and TILC's warehouse loan facility. The TRL-2023 term loan bears interest at a variable rate of daily simple SOFR plus (1) a benchmark adjustment of 10 basis points and (2) a facility margin of 1.80 %, for an all-in interest rate of 7.23 % as of December 31, 2023. The TRL-2023 term loan has a stated maturity date of June 12, 2028. We incurred $ 2.2 million in debt issuance costs, which will be amortized to interest expense over the term of the TRL-2023 term loan. The TRL-2023 term loan is an obligation of TRL-2023 and is non-recourse to Trinity. The obligation is secured by a portfolio of railcars and operating leases thereon, certain cash reserves, and other assets acquired and owned by TRL-2023. Net proceeds received from the transaction were used to repay approximately $ 300.1 million of borrowings under TILC's warehouse loan facility and for general corporate purposes. 
 Other equipment financing – In December 2023, TILC sold to a third party, and subsequently leased back, certain railcars for total proceeds of $ 52.3 million. The transaction did not qualify as a sale-leaseback and is being accounted for as a financing transaction. Accordingly, no gain or loss was recorded in connection with this transaction, and the sold assets remain within property, plant, and equipment, net in our Consolidated Balance Sheets and will continue to be depreciated over their remaining useful lives for the duration of the lease. A financing liability equal to the amount of consideration received from the buyer-lessor was recorded within debt in our Consolidated Balance Sheets. A portion of the future lease payments that we make to the buyer-lessor will reduce the financing liability and the remainder will be recorded as interest expense. As of December 31, 2023, the carrying value of the financing liability was $ 52.3 million. 
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 Partially-owned leasing subsidiaries 
 Triumph Rail – In June 2021, Triumph Rail issued an aggregate principal amount of (i) $ 535.0 million of its Series 2021-2 Class A Green Secured Railcar Equipment Notes (the “Triumph Class A Notes”) and (ii) $ 25.4 million of its Series 2021-2 Class B Green Secured Railcar Equipment Notes (the “Triumph Class B Notes”) (the Triumph Class A Notes and the Triumph Class B Notes are, collectively, the “Triumph Notes”). The Triumph Class A Notes, of which $ 476.4 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 2.15 %. The Triumph Class B Notes, of which $ 25.4 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 3.08 %. The Triumph Notes are payable monthly, and have a stated final maturity date of June 15, 2051. The Triumph Notes are non-recourse to Trinity, TILC, TRIP Holdings, and the other equity investors in TRIP Holdings, and are secured by Triumph Rail's portfolio of railcars and operating leases thereon, its cash reserves, and other assets owned by Triumph Rail. 
 Tribute Rail – In May 2022, Tribute Rail 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, of which $ 274.0 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 4.76 %. The Class B Notes, of which $ 37.0 million was outstanding as of December 31, 2023, 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. 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. 
 TRP-2021 – In June 2021, TRP-2021 issued an aggregate principal amount of (i) $ 334.0 million of its Series 2021-1 Class A Green Secured Railcar Equipment Notes (the “TRP-2021 Class A Notes”) and (ii) $ 21.0 million of its Series 2021-1 Class B Green Secured Railcar Equipment Notes (the “TRP-2021 Class B Notes”) (the TRP-2021 Class A Notes and the TRP-2021 Class B Notes are, collectively, the “TRP-2021 Notes”). The TRP-2021 Class A Notes, of which $ 314.1 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 2.07 %. The TRP-2021 Class B Notes, of which $ 21.0 million was outstanding as of December 31, 2023, bear interest at a fixed rate of 3.06 %. The TRP-2021 Notes are payable monthly, and have a stated final maturity date of June 15, 2051. The TRP-2021 Notes are non-recourse to Trinity, TILC, RIV 2013, and the other equity investors in RIV 2013, and are secured by TRP-2021's portfolio of railcars and operating leases thereon, its cash reserves, and other assets owned by TRP-2021. 
 In connection with the refinancings of Triumph Rail and TRP-2021, during the year ended December 31, 2021, we recognized a loss on extinguishment of debt of $ 11.7 million, which included a $ 3.3 million early redemption premium and a write-off of $ 8.4 million in unamortized debt issuance costs. Additionally, during the year ended December 31, 2022, we recognized a loss on extinguishment of debt of $ 1.5 million, which related to the write-off of unamortized debt issuance costs in connection with the repayment of TRIP Railcar Co. LLC's outstanding term loan agreement. These charges are reflected in the loss on extinguishment of debt line of our Consolidated Statements of Operations for the years ended December 31, 2022 and 2021. 
 Triumph Rail and Tribute Rail are wholly-owned subsidiaries of TRIP Holdings, and TRP-2021 is a wholly-owned subsidiary of RIV 2013. TRIP Holdings and RIV 2013 are partially-owned subsidiaries of the Company, through its wholly-owned subsidiary, TILC. Our combined weighted average ownership interest in TRIP Holdings and RIV 2013 is 38 %. See Note 5 for further information. 
 
 
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 Scheduled Repayments of Debt 
 Each of our secured railcar equipment notes generally has an anticipated repayment date and a stated final maturity date. While the stated final maturity dates of each of these notes can be up to 30 years after the respective issuance dates, the cash flows from the encumbered assets of each of these notes 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; the repayments reflected in the table below are based on the earlier anticipated repayment dates rather than the stated final maturity dates. 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. 
 The remaining principal payments under existing debt agreements as of December 31, 2023 based on the anticipated repayment dates are as follows: 
 
 2024 2025 2026 2027 2028 Thereafter Total 
 (in millions) 
 Recourse: 
 Senior notes due 2024 $ 400.0 $ — $ — $ — $ — $ — $ 400.0 
 Senior notes due 2028 — — — — 400.0 — 400.0 
 Non-recourse – leasing (Note 6): 
 
 2009 secured railcar equipment notes 14.2 19.4 18.2 17.2 19.4 11.3 99.7 
 2010 secured railcar equipment notes 30.8 20.4 25.5 28.3 24.0 52.2 181.2 
 2017 promissory notes 
 44.4 632.8 — — — — 677.2 
 2018 secured railcar equipment notes 
 18.9 14.8 14.4 18.1 311.9 — 378.1 
 2019 secured railcar equipment notes 
 36.5 35.0 677.1 — — — 748.6 
 2020 secured railcar equipment notes 14.1 11.1 13.9 272.2 — — 311.3 
 2021 secured railcar equipment notes 13.3 12.6 14.0 14.0 241.4 — 295.3 
 2022 secured railcar equipment notes 9.0 6.7 8.1 8.2 8.2 192.5 232.7 
 TRL-2023 term loan 11.0 11.0 11.1 11.1 290.3 — 334.5 
 TILC warehouse facility 
 17.2 22.9 — — — — 40.1 
 Facility termination payments – TILC warehouse facility 
 — 489.2 — — — — 489.2 
 Other equipment financing 2.3 2.4 2.5 2.7 2.9 39.5 52.3 
 TRP-2021 secured railcar equipment notes 15.5 15.8 17.2 286.6 — — 335.1 
 Triumph Rail secured railcar equipment notes 32.3 29.1 23.3 417.1 — — 501.8 
 Tribute Rail secured railcar equipment notes 13.7 14.9 282.4 — — — 311.0 
 
 Total principal payments $ 673.2 $ 1,338.1 $ 1,107.7 $ 1,075.5 $ 1,298.1 $ 295.5 $ 5,788.1 

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 Note 10. Income Taxes 
 The components of the provision (benefit) for income taxes from continuing operations are as follows: 
 
 Year Ended December 31, 
 2023 2022 2021 
 (in millions) 
 Current: 
 Federal: 
 Effect of CARES Act $ — $ ( 0.5 ) $ 2.1 
 Other 38.7 2.1 ( 3.0 ) 
 38.7 1.6 ( 0.9 ) 
 State 1.3 3.5 ( 0.6 ) 
 Foreign 10.5 7.8 4.3 
 Total current 50.5 12.9 2.8 
 Deferred: 
 Federal: 
 Effect of CARES Act — — 0.4 
 Other ( 20.7 ) 14.5 10.4 
 ( 20.7 ) 14.5 10.8 
 State ( 8.1 ) 0.4 2.4 
 Foreign ( 12.7 ) ( 0.2 ) ( 0.1 ) 
 Total deferred ( 41.5 ) 14.7 13.1 
 Provision (benefit) $ 9.0 $ 27.6 $ 15.9 

 The provision for income taxes from continuing operations results in effective tax rates that differ from the statutory rates. The following is a reconciliation between the statutory U.S. federal income tax rate and our effective income tax rate on income before income taxes: 
 
 Year Ended December 31, 
 2023 2022 2021 
 Statutory rate 21.0 % 21.0 % 21.0 % 
 Foreign branch taxes 1.8 2.1 3.0 
 State taxes 2.2 1.7 3.0 
 Executive compensation limitations 1.3 1.3 1.8 
 Noncontrolling interest in partially-owned subsidiaries ( 1.8 ) ( 2.1 ) — 
 Equity compensation ( 0.5 ) ( 1.1 ) ( 4.0 ) 
 Changes in valuation allowance and reserves ( 2.2 ) ( 0.9 ) ( 4.3 ) 
 Changes in state laws and apportionment ( 7.1 ) ( 0.5 ) 0.3 
 Release of residual taxes from OCI ( 8.1 ) — — 
 Effect of CARES Act — ( 0.5 ) 4.5 
 Foreign rate differential — — 1.4 
 Nondeductible excise tax — — 1.3 
 Nondeductible compensation — — 1.2 
 
 Other, net ( 0.6 ) 0.8 ( 0.4 ) 
 Effective rate 6.0 % 21.8 % 28.8 % 

 The effective tax rate is based upon the U.S. statutory rate of 21.0 % for the years ended December 31, 2023, 2022, and 2021. For the year ended December 31, 2023, the difference between the U.S. statutory rate and the Company's effective tax rate is primarily due to the release of residual taxes out of AOCI; the re-measurement of our net deferred state income tax liabilities due to apportionment and state law changes, reducing our net deferred tax liability; changes in our valuation allowances; state income taxes; and foreign income taxes. 
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 During the year ended December 31, 2023, one of our partially-owned subsidiaries released residual tax effects that had previously been recorded in AOCI. This deferred tax benefit was originally recorded before the partially-owned subsidiary was treated as a flow-through entity, remaining in AOCI until the underlying book-to-tax difference no longer existed, which occurred during the year ended December 31, 2023. As a result, we recorded an $ 11.9 million income tax benefit in our Consolidated Statements of Operations during the year ended December 31, 2023. 
 We remeasure our state deferred tax liability on a regular basis to reflect changes in our overall state tax footprint based upon current apportionment information. We also adjust our deferred balances based upon changes in tax laws and rates during the period in which those laws and rates are enacted, as well as adjusting for acquisition and disposition activity of businesses. As a result of our changes in apportionment, tax law changes, and business additions this year, we recorded a non-cash, deferred tax benefit of $ 10.6 million during the year ended December 31, 2023. 
 The tax provision for the year ended December 31, 2023 also reflects a $ 3.2 million tax benefit related to the net impact of an adjustment to valuation allowances, primarily for deferred tax assets in Mexico, state tax loss carryforwards, and federal tax credits. 
 For the year ended December 31, 2022, the difference between the U.S. statutory rate and the Company's effective tax rate is primarily due to foreign taxes, state income taxes and non-deductible executive compensation, offset by taxes not recorded on our non-controlling interests in partially-owned subsidiaries, reductions in tax reserves for uncertain tax positions, and excess tax benefits associated with equity-based compensation. 
 For the year ended December 31, 2021, the difference between the U.S. statutory rate and effective tax rate is primarily due to an adjustment to the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") carryback benefit previously recognized, state taxes, and foreign taxes, partially offset by excess tax benefits associated with equity-based compensation. See Note 5 for a further explanation of activities with respect to our partially-owned subsidiaries. 
 Due to the enactment of the CARES Act, Trinity filed a carryback claim for the 2018-2020 tax losses to the 2013-2015 tax years, allowing the recovery of taxes previously paid, resulting in a tax benefit of $ 0.5 million and a tax expense of $ 2.5 million for the years ended December 31, 2022 and 2021, respectively. 
 Income (loss) from continuing operations before income taxes for the years ended December 31, 2023, 2022, and 2021 was $ 137.2 million, $ 127.1 million, and $ 44.6 million, respectively, for U.S. operations, and $ 11.8 million, $( 0.6 ) million, and $ 10.6 million, respectively, for foreign operations. 
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 Deferred income taxes represent the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of deferred tax liabilities and assets are as follows: 
 
 December 31, 
 2023 2022 
 (in millions) 
 Deferred tax liabilities: 
 Depreciation, depletion, and amortization $ 1,100.6 $ 1,072.6 
 
 Partially-owned subsidiaries basis difference 129.9 134.3 
 Right-of-use assets 22.3 20.9 
 Equity items 3.5 4.8 
 Accrued liabilities and other 4.8 3.0 
 Total deferred tax liabilities 1,261.1 1,235.6 
 Deferred tax assets: 
 Workers compensation, pensions, and other benefits 30.0 27.4 
 Interest expense 85.0 31.3 
 Warranties and reserves 1.5 2.8 
 
 Tax loss carryforwards and credits 31.2 40.4 
 Inventory 5.9 3.6 
 
 Lease liabilities 26.4 25.8 
 Total deferred tax assets 180.0 131.3 
 Net deferred tax liabilities before valuation allowances 1,081.1 1,104.3 
 Valuation allowances 21.6 29.5 
 Net deferred tax liabilities before reserve for uncertain tax positions 1,102.7 1,133.8 
 Deferred tax assets included in reserve for uncertain tax positions ( 0.7 ) ( 0.7 ) 
 Net deferred tax liability $ 1,102.0 $ 1,133.1 

 At December 31, 2023, we had $ 20.0 million of tax-effected state loss carryforwards and $ 11.2 million of net federal and state credits remaining. We have established valuation allowances for federal, state, and foreign tax operating losses and credits that we have estimated may not be realizable. 
 Taxing authority examinations 
 Our federal tax return years through 2021 are effectively settled. 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 2018 forward. We believe we are appropriately reserved for any potential matters. 
 Unrecognized tax benefits 
 The change in unrecognized tax benefits was as follows: 
 
 Year Ended December 31, 
 2023 2022 2021 
 (in millions) 
 Beginning balance $ 3.8 $ 2.3 $ 2.3 
 Additions for tax positions related to the current year — 1.1 — 
 Additions for tax positions of prior years — 1.7 — 
 Reductions for tax positions of prior years ( 2.8 ) — — 
 Settlements — — — 
 Expiration of statute of limitations — ( 1.3 ) — 
 Ending balance $ 1.0 $ 3.8 $ 2.3 

 The total amount of unrecognized tax benefits, including interest and penalties, at December 31, 2023 and 2022, that would affect our effective tax rate if recognized, was $ 2.6 million and $ 2.5 million, respectively. The additions for tax positions in the current year and prior years are due to foreign positions of an acquired subsidiary that was recorded as part of our purchase accounting. The expiration of statute of limitations relates to a state tax position for which the statute of limitations has lapsed. 
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 The Company accounts for interest expense and penalties related to income tax issues as income tax expense. Accordingly, interest expense and penalties associated with an uncertain tax position are included in the income tax provision. The total amount of accrued interest and penalties from continuing operations as of December 31, 2023 and 2022 was $ 2.3 million and $ 2.2 million, respectively. Income tax expense (benefit) for the years ended December 31, 2023, 2022, and 2021 included an increase of $ 0.1 million, a decrease of $ 0.8 million, and an increase of $ 0.1 million, respectively, with regard to interest expense and penalties related to uncertain tax positions. 
 
 Note 11. Employee Retirement Plans 
 We sponsor a defined contribution plan (the "401(k) plan") that provides retirement income for eligible employees. Additionally, we sponsor a Supplemental Executive Retirement Plan ("SERP"), which is our only remaining defined benefit plan and is frozen to new participants. The annual measurement date of the benefit obligations and funded status is December 31. 
 Components of Net Periodic Benefit Cost and Other Retirement Expenses 
 
 Year Ended December 31, 
 2023 2022 2021 
 (in millions) 
 
 Defined contribution expense $ 10.1 $ 9.1 $ 8.6 
 Net periodic benefit cost – Supplemental Executive Retirement Plan (1) 
 $ 0.7 $ 0.7 $ 0.7 

 (1) The non-service cost components of net periodic benefit cost are included in other, net (income) expense in our Consolidated Statements of Operations. 
 Obligations and funded status 
 At December 31, 2023 and 2022, the projected benefit obligations and net funded status of our SERP were $ 11.1 million and $ 11.2 million, respectively, which are included in accrued liabilities in our Consolidated Balance Sheets. 
 Amounts recognized in other comprehensive income 
 Amounts recognized in other comprehensive income related to actuarial gains and the amortization of actuarial gains or losses during the years ended December 31, 2023, 2022, and 2021 were not significant in relation to the Consolidated Financial Statements. At December 31, 2023, AOCI included unrecognized actuarial losses related to our SERP of $ 2.6 million ($ 1.4 million net of related income taxes). Actuarial losses included in AOCI and expected to be recognized in net periodic pension cost for the year ended December 31, 2024 are $ 0.1 million ($ 0.1 million, net of related income taxes). 
 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. 
 During the year ended December 31, 2021, as permitted by applicable regulations, we used $ 10.9 million of the Pension Plan surplus to fund obligations associated with the Company's profit sharing plans and used $ 2.5 million to fund pension administrative expenses required to finalize the settlement of the Pension Plan. Additionally, we received a $ 6.4 million net refund upon final settlement of the annuity contract, which resulted in a remaining surplus of the Pension Plan of $ 16.6 million. During the fourth quarter of 2021, we reverted $ 16.0 million of the surplus pension assets to the Company and incurred an excise tax of approximately $ 3.2 million. These activities are included in the pension plan settlement line in our Consolidated Statements of Operations. As of December 31, 2021, the remaining surplus of the Pension Plan was $ 0.6 million. 
 During the year ended December 31, 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 December 31, 2022. 
 During the year ended December 31, 2023, we reverted the remaining surplus pension assets of $ 0.4 million to the Company and incurred an excise tax of approximately $ 0.1 million. Following the completion of this transaction, there are no longer any pension assets reported in our Consolidated Balance Sheets. 
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 Funding of Defined Contribution Plans 
 The Company's 401(k) plan utilizes a qualified automatic contribution arrangement safe harbor plan structure. The matching structure provides for a dollar-for-dollar Company match on up to 6% of participants' eligible compensation, subject to a two-year cliff vesting period. Employer contributions to the 401(k) plan and the Trinity Industries, Inc. Deferred Compensation Plan for the year ending December 31, 2024 are expected to be $ 10.6 million, compared to $ 10.1 million contributed during 2023. 
 
 Note 12. Accumulated Other Comprehensive Income (Loss) 
 Changes in AOCI for the years ended December 31, 2023 and 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 — 29.3 2.1 31.4 
 Amounts reclassified from AOCI, net of tax benefit of $ — , $ 0.8 , $ 0.1 , and $ 0.9 
 — 3.5 0.2 3.7 
 Amounts reclassified to discontinued operations, net of tax 1.3 — — 1.3 
 Less: noncontrolling interest 
 — 0.3 — 0.3 
 Other comprehensive income 1.3 33.1 2.3 36.7 
 Balances at December 31, 2022 
 — 20.9 ( 1.2 ) 19.7 
 Other comprehensive income (loss), net of tax, before reclassifications — 10.6 ( 0.3 ) 10.3 
 Amounts reclassified from AOCI, net of tax benefit (expense) of $ — , $ 7.4 , $ — , and $ 7.4 
 — ( 26.1 ) 0.1 ( 26.0 ) 
 
 Less: noncontrolling interest — 7.0 — 7.0 
 Other comprehensive income — ( 8.5 ) ( 0.2 ) ( 8.7 ) 
 Balances at December 31, 2023 
 $ — $ 12.4 $ ( 1.4 ) $ 11.0 

 In May 2013, one of our partially-owned leasing subsidiaries, TRIP Holdings, was converted to a partnership for income tax purposes. At the time of the conversion, TRIP Holdings had deferred tax assets associated with certain terminated interest rate hedges that were initially recognized as a component of AOCI. As TRIP Holdings was no longer a taxable entity following the conversion, these deferred tax assets were removed during the year ended December 31, 2013, with a corresponding charge to income tax expense in the Consolidated Statements of Operations, leaving residual tax effects in AOCI. These residual tax effects are released when the item giving rise to the tax effect is disposed of, liquidated, or terminated. Pursuant to our election of the portfolio approach, we released the residual tax effects when all of the interest rate swap balances were fully amortized, which occurred during the first quarter of 2023. Consequently, during the year ended December 31, 2023, we recorded an income tax benefit of $ 13.2 million to TRIP Holdings, reflecting the reclassification of the residual tax effects previously recorded in AOCI. The controlling interest portion of this income tax benefit was $ 4.4 million. 
 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. 
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 Note 13. Common Stock and Stock-Based Compensation 
 Stockholders' Equity 
 Share Repurchase Authorization 
 In December 2022, our Board of Directors authorized a share repurchase program effective December 9, 2022 with no expiration. The share repurchase program authorizes the Company to repurchase up to $ 250.0 million of its common stock. There were no shares repurchased under this share repurchase program during the years ended December 31, 2023 and 2022. 
 Previous Share Repurchase Authorization 
 In September 2021, our Board of Directors authorized a share repurchase program effective September 9, 2021 through December 31, 2022. The share repurchase program authorized 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 totaling $ 100.0 million that were 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. Our Board of Directors terminated this share repurchase program effective December 8, 2022, and the remaining authorization of $ 21.3 million under this program expired unused. Share repurchase activity under this program was 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 
 October 1, 2022 through December 31, 2022 427,383 12.4 $ 21.3 
 Total 7,953,336 $ 228.7 

 (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. 
 During the years ended December 31, 2022 and 2021, share repurchases totaled 2.8 million and 28.5 million shares, respectively, at a cost of approximatel y $ 76.8 million and $ 806.6 million, respectively. Share repurchases during the year ended December 31, 2021 included 16.9 million shares, at a cost of approximately $ 472.5 million, from privately negotiated transactions with ValueAct Capital Master Fund, L.P ("ValueAct"). The repurchases from ValueAct were approved by our Board of Directors separately from, and did not reduce the authorized amount remaining under, any of our share repurchase programs. 
 Stock-Based Compensation 
 Stock Award Plans 
 Our Fifth Amended and Restated Trinity Industries, Inc. Stock Option and Incentive Plan (the "Plan”) provides for awarding 22,050,000 (adjusted for stock splits) shares of common stock plus (i) shares covered by forfeited, expired, and canceled options granted under prior plans; and (ii) shares tendered as full or partial payment for the purchase price of an award or to satisfy tax withholding obligations. At December 31, 2023, a total of 3,221,792 s hares were available for issuance. The Plan provides for the granting of nonqualified and incentive stock options having maximum ten-year terms to purchase common stock at its market value on the award date; stock appreciation rights based on common stock fair market values with settlement in common stock or cash; restricted stock awards; restricted stock units; and performance awards with settlement in common stock or cash on achievement of specific business objectives. Our stock options have contractual terms of ten years and become exercisable over a three-year period. 
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 Stock-Based Compensation Expense 
 The cost of employee services received in exchange for awards of equity instruments is referred to as stock-based compensation and is recognized over the applicable vesting periods based on the grant date fair-value of those awards. Stock-based compensation expense totale d $ 22.7 million , $ 22.5 million, and $ 20.7 million for the years ended December 31, 2023, 2022, and 2021, respectively. 
 The income tax benefit related to stock-based compensation expense was $ 2.8 million , $ 2.6 million, and $ 10.7 million for the years ended December 31, 2023, 2022, and 2021, respectively. 
 Stock Options 
 Expense related to stock options is recognized on a straight-line basis over the vesting period. 
 
 Number of Shares Weighted Average Grant-Date Fair Value per Award Weighted Average Remaining Contractual Terms (Years) Aggregate Intrinsic Value
(in millions) 
 Options outstanding at December 31, 2022 
 300,000 $ 5.26 
 Granted — $ — 
 Exercised — $ — 
 Cancelled — $ — 
 Options outstanding and exercisable at December 31, 2023 
 300,000 $ 5.26 6.1 $ 1.5 

 At December 31, 2023, there was no unrecognized compensation expense related to stock options. The weighted average exercise price of stock options outstanding as of December 31, 2023 was $ 21.61 . 
 Restricted Stock Units 
 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 granted to non-employee directors under the Plan is recognized on a straight-line basis over the vesting period, generally one year . Forfeitures are recognized as a reduction to expense in the period in which they occur. 
 
 Number of Restricted Stock Units Weighted Average Grant-Date 
Fair Value per Award 
 
 Restricted stock units outstanding at December 31, 2022 
 1,740,166 $ 23.20 
 Granted 636,258 $ 21.63 
 Vested ( 645,604 ) $ 23.09 
 Forfeited ( 84,249 ) $ 24.05 
 Restricted stock units outstanding at December 31, 2023 
 1,646,571 $ 22.60 

 At December 31, 2023, unrecognized compensation expense related to RSUs totaled $ 17.2 million, which will be recognized over a weighted average period o f 1.6 years . The total grant-date fair value of RSUs vested and released during the years ended December 31, 2023, 2022, and 2021 was $ 14.9 million, $ 14.2 million, and $ 21.1 million, respectively. The weighted average grant-date fair value of RSUs granted during the years ended December 31, 2023, 2022, and 2021 was $ 21.63 , $ 25.65 , and $ 28.41 per share, respectively. 
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 Performance Units 
 Performance units are granted to employees based upon a target level; however, depending upon the achievement of certain specified goals during the performance period, performance units may be adjusted to a level ranging between 0% and 200% of the target level. The performance units vest upon certification by the Human Resources Committee of the Board of Directors of the achievement of the specified performance goals. 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. Forfeitures are recognized as a reduction to expense in the period in which they occur. 
 
 Number of Performance Units 
 Weighted Average Grant-Date 
Fair Value per Award 
 
 Performance units outstanding at December 31, 2022 
 921,391 $ 25.56 
 Granted 284,061 $ 27.72 
 Performance adjustment (1) 
 ( 27,299 ) $ 20.05 
 Vested (2) 
 ( 412,827 ) $ 24.71 
 Forfeited ( 18,112 ) $ 28.23 
 Performance units outstanding at December 31, 2023 
 747,214 $ 29.41 

 (1) For the 2020-2022 performance period, performance adjustment includes 221,509 performance units for return on equity, for which actual performance was below the minimum established threshold and thus resulted in no payout, and is net of 194,210 additional performance units for relative total shareholder return, for which actual performance resulted in a payout of 200% of target. 
 (2) Includes 194,210 performance units for the 2020-2022 performance period for relative total shareholder return that were paid out at 200% of target based on actual performance achieved. 
 At December 31, 2023, unrecognized compensation expense related to performance units totaled $ 7.8 million, which will be recognized over a weighted average period of 1.4 years. The total grant-date fair value of performance units vested and released during the years ended December 31, 2023, 2022, 2021 was $ 10.2 million, $ 4.7 million, and $ 7.2 million, respectively. The weighted average grant-date fair value of performance units granted during the years ended December 31, 2023, 2022, and 2021 was $ 27.72 , $ 29.80 , and $ 30.85 per share, respectively. 
 Restricted Stock Awards 
 Expense related to 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 . Certain RSAs vest in their entirety upon an employee's retirement from the Company, taking into consideration the employee's age and years of service to the Company, as defined more specifically in our benefit plans. Forfeitures are recognized as a reduction to expense in the period in which they occur. 
 
 Number of Restricted Stock Awards Weighted Average Grant-Date 
Fair Value per Award 
 
 Restricted stock awards outstanding at December 31, 2022 
 655,050 $ 21.07 
 Granted 22,937 $ 21.32 
 Vested ( 94,630 ) $ 20.91 
 Forfeited ( 31,117 ) $ 25.93 
 Restricted stock awards outstanding at December 31, 2023 (1) 
 552,240 $ 20.84 

 (1) The balance of RSAs outstanding at December 31, 2023 includes approximate ly 0.2 million RSAs for Arcosa Inc. ("Arcosa") employees that were converted under the shareholder method at the time of the Arcosa spin-off. These RSAs will be released to Arcosa employees upon vesting, but as of the spin-off date, Trinity no longer records the compensation expense associated with these shares. 
 At December 31, 2023, unrecognized compensation expense related to RSAs totaled $ 2.0 million, which will be recognized over a weighted average period of 3.9 years. The total grant-date fair value of RSAs vested and released during the years ended December 31, 2023, 2022, and 2021 was $ 2.0 million, $ 1.7 million, and $ 4.1 million, respectively. The weighted average grant-date fair value of RSAs granted during the years ended December 31, 2023, 2022, and 2021 was $ 21.32 , $ 25.43 , and $ 28.48 per s hare, respectively. 
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 Note 14. 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.: 
 
 Year Ended December 31, 
 2023 2022 2021 
 (in millions, except per share amounts) 
 Income from continuing operations $ 140.0 $ 98.9 $ 39.3 
 Less: Net (income) loss attributable to noncontrolling interest ( 20.6 ) ( 12.8 ) 0.2 
 
 Net income from continuing operations attributable to Trinity Industries, Inc. 119.4 86.1 39.5 
 Income (loss) from discontinued operations, net of income taxes ( 13.4 ) ( 20.3 ) 11.1 
 Gain (loss) on sale of discontinued operations, net of income taxes — ( 5.7 ) 131.4 
 
 Net income (loss) from discontinued operations attributable to Trinity Industries, Inc. ( 13.4 ) ( 26.0 ) 142.5 
 Net income attributable to Trinity Industries, Inc. $ 106.0 $ 60.1 $ 182.0 
 
 Basic weighted average shares outstanding 81.2 81.9 101.5 
 Effect of dilutive securities 2.2 2.3 2.3 
 Diluted weighted average shares outstanding 
 83.4 84.2 103.8 
 
 Basic earnings per common share: 
 
 Income from continuing operations $ 1.47 $ 1.05 $ 0.39 
 Income (loss) from discontinued operations ( 0.16 ) ( 0.32 ) 1.40 
 Basic net income attributable to Trinity Industries Inc. $ 1.31 $ 0.73 $ 1.79 
 Diluted earnings per common share: 
 Income from continuing operations $ 1.43 $ 1.02 $ 0.38 
 Income (loss) from discontinued operations ( 0.16 ) ( 0.31 ) 1.37 
 Diluted net income attributable to Trinity Industries Inc. $ 1.27 $ 0.71 $ 1.75 
 
 Potentially dilutive securities excluded from EPS calculation: 
 Antidilutive restricted shares 0.1 0.1 0.1 
 Antidilutive stock options — — — 

 
 
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 Note 15. 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 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. On February 7, 2024, the trial court granted the Company's motion for summary judgment and ordered that the trial dates and hearing dates in this matter be removed from the court's docket. 
 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 Claims 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. On June 13, 2023, the Tennessee Court of Appeals affirmed the trial court's decision dismissing Mr. Harman's Second Amended Complaint with prejudice. On August 14, 2023, Mr. Harman filed an Application for Permission to Appeal in the Tennessee Supreme Court. On December 19, 2023, the Tennessee Supreme Court denied Mr. Harman's Application. The denial of Mr. Harman's Application ended this action. 
 
 
 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 these matters are without merit and intends to vigorously defend against all allegations. Based on information currently available to the Company and previously disclosed, we currently do not believe that a loss is probable in the 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. 
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 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 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. 
 As previously reported, 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. 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 Statements of Operations, based on the Company’s assessment that a settlement was probable and the estimated costs to resolve this action. To date, the Company has funded $ 18.1 million in connection with the settlement and refined certain estimates, resulting in a remaining liability of $ 7.2 million as of December 31, 2023. 
 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 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". 
 East Palestine, OH Train Derailment 
 On February 3, 2023, a Norfolk Southern Railway freight train derailed 38 railcars in East Palestine, Ohio. In March 2023, the State of Ohio and the United States Environmental Protection Agency filed lawsuits against Norfolk Southern Railway Company and Norfolk Southern Corporation (“Norfolk Southern”), which were consolidated in the United States District Court for the Northern District of Ohio, Eastern Division in a civil action styled The State of Ohio, ex rel., Dave Yost, Ohio Attorney General, and the United States of America, Plaintiffs v. Norfolk Southern Railway Company and Norfolk Southern Corporation, Defendants , Civil Action No. 4:23-cv-00517. In this action, on June 30, 2023, Norfolk Southern filed a third-party complaint against the Company’s wholly-owned subsidiary, TILC. Norfolk Southern also named as third-party defendants in this action Oxy Vinyls LP, GATX Corporation, General American Marks Company, SMBC Rail Services LLC, Dow Chemical Incorporated, and Union Tank Car Company. Norfolk Southern asserts third-party claims against TILC for recovery of response costs, contribution, and declaratory relief under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"); negligence; and equitable contribution. TILC was the owner of one tank car cited in this action, which was leased to a third party, who is also a third-party defendant in the litigation. On September 15, 2023, TILC filed a motion to dismiss Norfolk Southern’s third-party complaint, which remains pending. 
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 In April 2023, multiple putative class action lawsuits filed against Norfolk Southern were consolidated in the United States District Court for the Northern District of Ohio, Eastern Division in a civil action styled In re: East Palestine Train Derailment, Civil Action No. 4:23-CV-00242 . In this action, on July 25, 2023, Norfolk Southern filed a third-party complaint against the Company’s wholly-owned subsidiary, TILC. Norfolk Southern also named as third-party defendants in this action Oxy Vinyls LP, GATX Corporation, and General American Marks Company. Norfolk Southern asserts third-party claims against TILC for negligence, joint and several liability, and contribution. On August 14, 2023, plaintiffs filed a First Amended Master Consolidated Class Action Complaint and Jury Demand (“First Amended Complaint”) asserting direct claims for negligence, gross negligence, and medical monitoring against Oxy Vinyls LP, GATX Corporation, General American Marks Company, and TILC. On September 15, 2023, TILC filed a motion to dismiss Norfolk Southern’s third-party complaint, and on September 26, 2023, TILC filed a motion to dismiss plaintiffs’ First Amended Complaint. Both motions remain pending. TILC was the owner of one tank car cited in this action, which was leased to a third party, who is also a third-party defendant in the litigation. 
 On December 8, 2023, a lawsuit was filed against the Company titled Ambridge Area School District et al. v. Norfolk Southern Corporation et al., Case No. 2:23-cv-01530-CB, in the United States District Court for the Western District of Pennsylvania. Plaintiffs in this putative class action lawsuit assert claims against Norfolk Southern Corporation, Norfolk Southern Railway Company, Oxy Vinyls, LP, GATX Corporation, General American Marks Company, and TILC for negligence, negligence per se, strict liability, public and private nuisance, future health monitoring, trespass, and punitive damages. TILC was the owner of one tank car cited in this action, which was leased to a third party, who is also a third-party defendant in the litigation. 
 The Company believes it has substantial defenses and intends to vigorously defend itself against all allegations in the third-party and direct claims asserted against TILC. The Company or its subsidiaries could be named in similar litigation involving other plaintiffs, but the ultimate number of claims and the jurisdiction(s) in which such claims, if any, may be filed may vary. We do not believe at this time that a loss is probable in these matters, nor can a range of possible losses be determined. Accordingly, no accrual or range of loss has been included in the accompanying consolidated financial statements. The Company maintains liability insurance coverage and commercial indemnity agreements to protect the Company’s assets from losses arising from these types of litigation claims. 
 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 $ 8.7 million to $ 19.6 million, which includes our rights to indemnity and recourse to third parties of approximately $ 0.1 million, which is recorded in other assets in our Consolidated Balance Sheets as of December 31, 2023. This range includes any amounts related to the Highway Products litigation matters described above in the section titled “Highway products litigation." At December 31, 2023, total accruals of $ 10.9 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 $ 0.8 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. 
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 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 $ 33.0 million, which includes $ 8.1 million for reimbursement of cleanup and damage remediation expenditures. As of December 31, 2023, we have utilized $ 23.7 million of the advanced payments from insurance towards new capital expenditures in support of the reconstruction efforts. 
 During the year ended December 31, 2023, we recorded gains of $ 6.3 million for property damage insurance recoveries in excess of the net book value of assets destroyed, which is included in the gains on dispositions of other property line in our Consolidated Statements of Operations. As of December 31, 2023, we have a remaining insurance receivable of $ 2.1 million. 
 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. 
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 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. 
 None.
TRINITY INDUSTRIES INC 10-K

Item 8. Financial Statements and Supplementary Data
