Financial Data of Business Segments

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Financial Data of Business Segments

We lease, operate, manage, and remarket long-lived, widely-used assets, primarily in the rail and marine markets. We also invest in joint ventures that complement our existing business activities. We have four primary business segments: Rail North America, Rail International, American Steamship Company (“ASC”), and Portfolio Management.

Rail North America is comprised of our wholly-owned operations in the United States, Canada, and Mexico, as well as two affiliate investments. Rail North America primarily leases railcars to customers on full-service leases, which require us to maintain the railcars, pay ad valorem taxes and insurance, and provide other ancillary services.

Rail International is comprised of our wholly-owned European rail operations ("Rail Europe") and our newly-established railcar leasing business in India ("Rail India"), as well as two affiliate investments. Rail Europe leases railcars, predominantly tank cars, to customers throughout Europe on full-service leases, which require us to maintain the railcars and provide insurance and other ancillary services.

ASC operates the largest fleet of U.S. flagged vessels on the Great Lakes, providing waterborne transportation of dry bulk commodities such as iron ore, coal, limestone aggregates, and metallurgical limestone.

Portfolio Management is an aggregation of a group of diversified owned assets and joint venture investments ("affiliates"), and provides leasing, asset remarketing, and asset management services. Portfolio Management selectively invests in long-lived, widely-used assets with a focus on domestic marine and container related equipment, and extends our market reach through affiliate investments.

Segment profit is an internal performance measure our Chief Executive Officer uses to assess the performance of each segment in a given period. Segment profit includes all revenues, pretax earnings from affiliates, and net gains on asset dispositions that are attributable to the segments as well as expenses that we believe are directly associated with the financing, maintenance, and operation of the revenue-earning assets. Segment profit excludes selling, general and administrative expenses, income taxes, and other unallocated amounts.

We allocate debt and interest expense to each segment based upon a predetermined fixed recourse leverage level expressed as a ratio of recourse debt (including off-balance-sheet debt) to equity. The leverage levels are 5:1 for Rail North America, 2:1 for Rail International, 1.5:1 for ASC, and 3:1 for Portfolio Management.We believe that by utilizing this allocation methodology, each segment’s financial performance reflects appropriate risk-adjusted borrowing costs.

The following tables show the profitability, financial position, and investment volume of each of our business segments (in millions):

	Rail North America			Rail International			ASC			Portfolio Management			Other			GATX Consolidated
Three Months Ended June 30, 2013
Profitability
Revenues
Lease revenue	$	187.3		$	43.6		$	1.0		$	7.1		$	—		$	239.0
Marine operating revenue	—			—			71.7			11.6			—			83.3
Other revenue	13.8			1.7			—			1.1			—			16.6
Total Revenues	201.1			45.3			72.7			19.8			—			338.9
Expenses
Maintenance expense	57.6			9.6			7.1			—			—			74.3
Marine operating expense	—			—			48.2			9.5			—			57.7
Depreciation expense	42.7			10.6			4.0			5.8			—			63.1
Operating lease expense	32.0			—			1.7			—			(0.1		)	33.6
Other operating expense	5.0			1.4			—			0.6			—			7.0
Total Expenses	137.3			21.6			61.0			15.9			(0.1		)	235.7
Other Income (Expense)
Net gain on asset dispositions	10.2			1.3			—			8.1			—			19.6
Interest expense, net	(28.7		)	(5.2		)	(1.6		)	(6.7		)	(1.0		)	(43.2		)
Other (expense) income	(3.3		)	—			—			—			0.2			(3.1		)
Share of affiliates' earnings (pretax)	6.2			4.6			—			12.0			—			22.8
Segment Profit (Loss)	$	48.2		$	24.4		$	10.1		$	17.3		$	(0.7	)	99.3
Selling, general and administrative expense																45.8
Income taxes ($9.3 million related to affiliates' earnings)																18.4
Net Income																$	35.1
Investment Volume
Portfolio investments and capital additions	$	129.4		$	46.9		$	7.8		$	135.2		$	1.4		$	320.7
Selected Balance Sheet Data at June 30, 2013
Investments in affiliated companies	$	33.5		$	83.8		$	—		$	307.0		$	—		$	424.3
Identifiable assets	$	3,710.2		$	1,151.1		$	298.6		$	828.0		$	131.3		$	6,119.2

	Rail North America			Rail International			ASC			Portfolio Management			Other			GATX Consolidated
Three Months Ended June 30, 2012
Profitability
Revenues
Lease revenue	$	176.6		$	39.0		$	1.0		$	9.0		$	—		$	225.6
Marine operating revenue	—			—			76.2			6.9			—			83.1
Other revenue	12.1			1.6			—			0.7			—			14.4
Total Revenues	188.7			40.6			77.2			16.6			—			323.1
Expenses
Maintenance expense	48.8			12.3			6.7			—			—			67.8
Marine operating expense	—			—			49.6			5.6			—			55.2
Depreciation expense	41.8			8.6			3.9			5.2			—			59.5
Operating lease expense	31.3			—			1.2			0.1			(0.1		)	32.5
Other operating expense	4.0			1.8			(0.1		)	0.6			—			6.3
Total Expenses	125.9			22.7			61.3			11.5			(0.1		)	221.3
Other Income (Expense)
Net gain on asset dispositions	14.5			1.2			—			2.6			—			18.3
Interest expense, net	(25.9		)	(6.5		)	(1.9		)	(6.5		)	(0.8		)	(41.6		)
Other (expense) income	(0.2		)	0.3			—			0.2			0.2			0.5
Share of affiliates' earnings (pretax)	2.0			(16.5		)	—			13.2			—			(1.3		)
Segment Profit (Loss)	$	53.2		$	(3.6	)	$	14.0		$	14.6		$	(0.5	)	77.7
Selling, general and administrative expense																38.9
Income taxes ($2.1 million related to affiliates' earnings)																15.3
Net Income																$	23.5
Investment Volume
Portfolio investments and capital additions	$	137.7		$	39.2		$	5.5		$	53.4		$	2.3		$	238.1
Selected Balance Sheet Data at December 31, 2012
Investments in affiliated companies	$	46.9		$	77.2		$	—		$	377.9		$	—		$	502.0
Identifiable assets	$	3,601.1		$	1,105.8		$	284.2		$	797.4		$	266.9		$	6,055.4

	Rail North America			Rail International			ASC			Portfolio Management			Other			GATX Consolidated
Six Months Ended June 30, 2013
Profitability
Revenues
Lease revenue	$	371.1		$	86.6		$	2.1		$	16.4		$	—		$	476.2
Marine operating revenue	—			—			84.0			17.8			—			101.8
Other revenue	27.6			3.9			—			1.7			—			33.2
Total Revenues	398.7			90.5			86.1			35.9			—			611.2
Expenses
Maintenance expense	112.2			21.1			7.7			—			—			141.0
Marine operating expense	—			—			58.0			16.3			—			74.3
Depreciation expense	85.0			20.7			4.0			11.3			—			121.0
Operating lease expense	64.3			—			1.7			—			(0.1		)	65.9
Other operating expense	9.0			2.3			—			1.0			—			12.3
Total Expenses	270.5			44.1			71.4			28.6			(0.1		)	414.5
Other Income (Expense)
Net gain on asset dispositions	20.4			2.5			—			13.4			—			36.3
Interest expense, net	(54.4		)	(10.8		)	(3.2		)	(13.4		)	(2.3		)	(84.1		)
Other (expense) income	(4.1		)	0.5			(0.6		)	—			—			(4.2		)
Share of affiliates' earnings (pretax)	8.4			4.4			—			22.5			—			35.3
Segment Profit (Loss)	$	98.5		$	43.0		$	10.9		$	29.8		$	(2.2	)	180.0
Selling, general and administrative expense																87.8
Income taxes ($13.4 million related to affiliates' earnings)																30.0
Net Income																$	62.2
Investment Volume
Portfolio investments and capital additions	$	215.1		$	91.2		$	11.0		$	151.2		$	2.1		$	470.6

	Rail North America			Rail International			ASC			Portfolio Management			Other			GATX Consolidated
Six Months Ended June 30, 2012
Profitability
Revenues
Lease revenue	$	351.2		$	79.0		$	2.1		$	18.8		$	—		$	451.1
Marine operating revenue	—			—			86.9			13.7			—			100.6
Other revenue	23.9			2.5			—			1.5			—			27.9
Total Revenues	375.1			81.5			89.0			34.0			—			579.6
Expenses
Maintenance expense	96.8			24.8			7.1			—			—			128.7
Marine operating expense	—			—			57.3			11.4			—			68.7
Depreciation expense	83.5			17.2			3.9			10.6			—			115.2
Operating lease expense	62.7			—			1.2			0.2			(0.2		)	63.9
Other operating expense	8.4			2.9			(0.3		)	(1.0		)	—			10.0
Total Expenses	251.4			44.9			69.2			21.2			(0.2		)	386.5
Other Income (Expense)
Net gain on asset dispositions	30.5			2.1			—			13.7			—			46.3
Interest expense, net	(51.7		)	(12.9		)	(3.7		)	(13.7		)	(2.2		)	(84.2		)
Other (expense) income	(2.1		)	(1.5		)	—			3.1			0.4			(0.1		)
Share of affiliates' earnings (pretax)	3.5			(20.0		)	—			20.7			—			4.2
Segment Profit (Loss)	$	103.9		$	4.3		$	16.1		$	36.6		$	(1.6	)	159.3
Selling, general and administrative expense																77.0
Income taxes ($4.5 million related to affiliates' earnings)																28.5
Net Income																$	53.8
Investment Volume
Portfolio investments and capital additions	$	236.6		$	84.0		$	11.4		$	56.5		$	3.3		$	391.8