Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Components of Deferred tax Assets and Liabilities

significant components of our deferred tax liabilities and assets as of December 31 (in millions):

	2014			2013
Deferred Tax Liabilities
Book/tax basis difference due to depreciation	$	963.8		$	852.0
Investments in affiliated companies	99.7			93.7
Lease accounting	10.5			24.4
Other	0.1			—
Total deferred tax liabilities	1,074.1			970.1
Deferred Tax Assets
Federal net operating loss	41.8			8.9
Alternative minimum tax credit	9.2			8.4
Foreign tax credit	3.6			3.6
Valuation allowance on foreign tax credit	(3.6		)	(3.6		)
State net operating loss	28.7			27.1
Valuation allowance on state net operating loss	(11.3		)	(11.2		)
Foreign net operating loss	5.8			8.5
Valuation allowance on foreign net operating loss	(0.2		)	(0.2		)
Accruals not currently deductible for tax purposes	18.7			14.1
Allowance for losses	1.7			2.2
Pension and post-retirement benefits	32.6			13.3
Other	9.8			7.6
Total deferred tax assets	136.8			78.7
Net deferred tax liabilities	937.3			$	891.4

Gross liability for unrecognized tax benefits

The following table shows a reconciliation of the beginning and ending amount of our gross liability for unrecognized tax benefits (in millions)

	2014			2013
Beginning balance	$	5.7		$	4.7
Reductions due to settlement of tax audit issues	(0.4		)	—
Additions to tax positions for prior years	0.3			1.0
Ending balance	$	5.6		$	5.7

Income before income taxes

The following table shows the components of income before income taxes, excluding affiliates, for the years ending December 31 (in millions):

	2014		2013		2012
Domestic	$	137.9	$	66.0	$	80.5
Foreign	93.3		93.0		63.3
	$	231.2	$	159.0	$	143.8

Consolidated federal income taxes

The following table shows income taxes, excluding domestic and foreign joint ventures, for the years ending December 31 (in millions):

	2014		2013		2012
Current
Domestic:
Federal	$	0.7	$	1.4	$	(8.8	)
State and local	0.6		—		2.5
	1.3		1.4		(6.3		)
Foreign	13.0		10.5		8.0
	14.3		11.9		1.7
Deferred
Domestic:
Federal	45.0		36.6		16.0
State and local	5.6		5.3		(3.1		)
	50.6		41.9		12.9
Foreign	10.8		11.7		11.5
	61.4		53.6		24.4
Income taxes	$	75.7	$	65.5	$	26.1

Summary of reasons for difference between GATX's effective income tax rate and federal statutory income tax

The following table shows the differences between our effective income tax rate and the federal statutory income tax rate for the years ending December 31 (in millions):

	2014			2013			2012
Income taxes at federal statutory rate	$	80.9		$	55.6		$	50.4
Adjust for effect of:
GATX income taxes on sale of AAE	—			23.2			—
Foreign tax credits	—			(3.9		)	(13.7		)
Foreign earnings taxed at lower rates	(8.5		)	(10.3		)	(4.1		)
Tax effect of foreign dividends	—			—			6.3
Expiration of the applicable statute of limitations	—			—			(15.5		)
Corporate owned life insurance	(0.6		)	(0.5		)	(0.3		)
State income taxes	4.1			1.5			1.9
Other	(0.2		)	(0.1		)	1.1
Income taxes	$	75.7		$	65.5		$	26.1
Effective income tax rate	32.7		%	41.2		%	18.2		%