Financial Data of Business Segments

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Financial Data of Business Segments

Financial Data of Business Segments

The financial data presented below depicts the profitability, financial position, and capital expenditures of each of our 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 report our financial results through fourprimary 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 provides railcars pursuant to full-service leases under which it maintains the railcars, pays ad valorem taxes and insurance, and provides other ancillary services.

Rail International is comprised of our wholly owned European operations ("Rail Europe") and a recently established railcar leasing business in India ("Rail India"), as well as one development stage affiliate in China. Rail Europe leases railcars to customers throughout Europe pursuant to full-service leases under which it maintains the railcars and provides insurance, and other ancillary services.

ASC operates the largest fleet of US 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 provides leasing, shipping, asset remarketing and asset management services through a collection of diversified wholly owned assets and joint venture investments. Portfolio Management selectively invests in long-lived, widely used assets with a focus on domestic marine and container related equipment and seeks to maximize the value of the existing portfolio of owned and managed assets and affiliate investments.

Segment profit is an internal performance measure used by the Chief Executive Officer 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 management believes 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 certain other amounts not allocated to the segments. These amounts are included in other.

We allocate debt balances and related 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 using this leverage and interest expense allocation methodology, each operating segment’s financial performance reflects appropriate risk-adjusted borrowing costs.

The following tables show certain segment data for the years ended December 31, 2013, 2012, and 2011 (in millions):

	Rail North America			Rail International			ASC			Portfolio Management			Other			GATX Consolidated
2013 Profitability
Revenues
Lease revenue	$	758.9		$	180.2		$	4.2		$	31.9		$	—		$	975.2
Marine operating revenue	—			—			223.5			51.6			—			275.1
Other revenue	58.2			8.8			—			3.7			—			70.7
Total Revenues	817.1			189.0			227.7			87.2			—			1,321.0
Expenses
Maintenance expense	228.2			42.9			22.9			—			—			294.0
Marine operating expense	—			—			151.3			38.5			—			189.8
Depreciation expense	176.7			43.2			12.1			23.0			—			255.0
Operating lease expense	124.4			—			5.2			—			(0.2		)	129.4
Other operating expense	18.4			5.3			—			2.4			—			26.1
Total Expenses	547.7			91.4			191.5			63.9			(0.2		)	894.3
Other Income (Expense)
Net gain on asset dispositions	67.7			3.7			(1.3		)	15.5			—			85.6
Interest expense, net	(106.0		)	(23.9		)	(6.2		)	(26.7		)	(3.8		)	(166.6		)
Other (expense) income	(9.8		)	(1.1		)	0.2			1.4			0.9			(8.4		)
Share of affiliates' earnings (pretax)	10.3			21.1			—			60.9			—			92.3
Segment profit (loss)	$	231.6		$	97.4		$	28.9		$	74.4		$	(2.7	)	429.6
Selling, general and administrative expense																178.3
Income taxes (including $16.5 related to affiliates' earnings)																82.0
Net income																$	169.3
Selected Balance Sheet Data
Investments in affiliated companies	$	31.4		$	2.0		$	—		$	320.9		$	—		$	354.3
Identifiable assets	$	3,710.5		$	1,297.1		$	271.0		$	856.9		$	414.1		$	6,549.6
Capital Expenditures
Portfolio investments and capital additions	$	502.4		$	168.5		$	11.2		$	170.5		$	7.0		$	859.6

	Rail North America			Rail International			ASC			Portfolio Management			Other			GATX Consolidated
2012 Profitability
Revenues
Lease revenue	$	713.9		$	161.2		$	4.3		$	37.6		$	—		$	917.0
Marine operating revenue	—			—			239.1			26.4			—			265.5
Other revenue	51.4			6.5			—			2.8			—			60.7
Total Revenues	765.3			167.7			243.4			66.8			—			1,243.2
Expenses
Maintenance expense	201.4			46.6			21.7			—			—			269.7
Marine operating expense	—			—			160.3			22.1			—			182.4
Depreciation expense	167.7			36.1			11.9			21.7			—			237.4
Operating lease expense	126.5			—			3.8			0.2			(0.3		)	130.2
Other operating expense	18.5			5.1			(0.3		)	0.9			—			24.2
Total Expenses	514.1			87.8			197.4			44.9			(0.3		)	843.9
Other Income (Expense)
Net gain on asset dispositions	58.6			1.7			—			19.2			—			79.5
Interest expense, net	(101.9		)	(24.5		)	(7.1		)	(27.7		)	(5.4		)	(166.6		)
Other (expense) income	(5.1		)	(6.1		)	(1.4		)	3.4			1.0			(8.2		)
Share of affiliates' earnings (pretax)	6.5			(18.3		)	—			33.4			—			21.6
Segment profit (loss)	$	209.3		$	32.7		$	37.5		$	50.2		$	(4.1	)	325.6
Selling, general and administrative expense																160.2
Income taxes (including $2.0 related to affiliates' earnings)																28.1
Net income																$	137.3
Selected Balance Sheet Data
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
Capital Expenditures
Portfolio investments and capital additions	$	465.9		$	200.1		$	12.6		$	83.5		$	7.9		$	770.0

	Rail North America			Rail International			ASC			Portfolio Management			Other			GATX Consolidated
2011 Profitability
Revenues
Lease revenue	$	690.9		$	160.5		$	4.2		$	44.5		$	—		$	900.1
Marine operating revenue	—			—			212.2			17.8			—			230.0
Other revenue	51.5			7.8			—			2.0			—			61.3
Total Revenues	742.4			168.3			216.4			64.3			—			1,191.4
Expenses
Maintenance expense	206.1			52.1			19.4			—			—			277.6
Marine operating expense	—			—			151.7			13.9			—			165.6
Depreciation expense	162.5			33.6			11.3			19.1			—			226.5
Operating lease expense	130.9			—			—			1.4			(0.3		)	132.0
Other operating expense	18.8			4.2			—			4.3			0.5			27.8
Total Expenses	518.3			89.9			182.4			38.7			0.2			829.5
Other Income (Expense)
Net gain on asset dispositions	52.1			—			1.1			12.6			—			65.8
Interest expense, net	(101.7		)	(25.4		)	(7.7		)	(29.6		)	(4.5		)	(168.9		)
Other (expense) income	(5.7		)	7.2			(0.1		)	2.8			(0.1		)	4.1
Share of affiliates' earnings (pretax)	3.9			0.5			—			36.2			—			40.6
Segment profit (loss)	$	172.7		$	60.7		$	27.3		$	47.6		$	(4.8	)	303.5
Selling, general and administrative expense																155.3
Income taxes (including $8.2 related to affiliates' earnings)																37.4
Net income																$	110.8
Selected Balance Sheet Data
Investments in affiliated companies	$	54.0		$	88.2		$	—		$	371.6		$	—		$	513.8
Identifiable assets	$	3,540.2		$	903.2		$	276.1		$	844.0		$	294.0		$	5,857.5
Capital Expenditures
Portfolio investments and capital additions	$	280.5		$	140.8		$	17.4		$	172.0		$	3.9		$	614.6