Financial Data of Business Segments

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Segment Reporting Information [Line Items]

Segment Reporting Disclosure [Text Block]

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, ASC, and Portfolio Management.

Rail North America comprises our wholly owned operations in the United States, Canada, and Mexico, as well as an affiliate investment. 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 comprises our wholly owned European operations ("GATX Rail Europe" or "GRE"), a railcar leasing business in India ("GATX India Pte. Ltd." or "GIPL"), and a recently established railcar leasing business in Russia ("GATX Rail Vostok LLC" or "GRV"), as well as one development stage affiliate in China. GRE 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 generates leasing, marine operating, asset remarketing and management fee income through a collection of diversified wholly owned assets and joint venture 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 each of our business segments (in millions):

	Rail North America			Rail International			ASC			Portfolio Management			Other			GATX Consolidated
Three Months Ended March 31, 2015
Profitability
Revenues
Lease revenue	$	228.5		$	42.1		$	1.0		$	6.7		$	—		$	278.3
Marine operating revenue	—			—			7.0			17.2			—			24.2
Other revenue	14.7			1.9			—			0.6			—			17.2
Total Revenues	243.2			44.0			8.0			24.5			—			319.7
Expenses
Maintenance expense	69.2			8.9			0.2			—			—			78.3
Marine operating expense	—			—			6.9			12.0			—			18.9
Depreciation expense	52.3			10.7			—			5.5			—			68.5
Operating lease expense	20.7			—			—			—			—			20.7
Other operating expense	5.5			0.9			—			0.9			—			7.3
Total Expenses	147.7			20.5			7.1			18.4			—			193.7
Other Income (Expense)
Net gain on asset dispositions	36.8			4.9			—			3.6			—			45.3
Interest expense, net	(24.5		)	(6.5		)	(1.3		)	(5.2		)	(3.4		)	(40.9		)
Other expense	(2.2		)	—			—			—			(1.8		)	(4.0		)
Share of affiliates' earnings (pretax)	0.2			(0.1		)	—			11.4			—			11.5
Segment Profit (Loss)	$	105.8		$	21.8		$	(0.4	)	$	15.9		$	(5.2	)	137.9
Selling, general and administrative expense																45.7
Income taxes (including $3.0 related to affiliates' earnings)																30.0
Net Income																$	62.2
Net Gain on Asset Dispositions
Asset Remarketing Income:
Disposition gains on owned assets	$	35.9		$	—		$	—		$	2.0		$	—		$	37.9
Residual sharing income	0.2			—			—			1.6			—			1.8
Non-remarketing disposition gains (1)	0.7			5.0			—			—			—			5.7
Asset impairment	—			(0.1		)	—			—			—			(0.1		)
	$	36.8		$	4.9		$	—		$	3.6		$	—		$	45.3
Capital Expenditures
Portfolio investments and capital additions	$	129.8		$	41.4		$	9.3		$	—		$	0.4		$	180.9
Selected Balance Sheet Data at March 31, 2015
Investments in affiliated companies	$	13.9		$	1.6		$	—		$	344.2		$	—		$	359.7
Identifiable assets	$	4,518.9		$	1,161.0		$	273.5		$	794.4		$	308.6		$	7,056.4

_____

(1) Includes scrapping gains.

	Rail North America			Rail International			ASC			Portfolio Management			Other			GATX Consolidated
Three Months Ended March 31, 2014
Profitability
Revenues
Lease revenue	$	194.9		$	47.2		$	1.1		$	7.4		$	—		$	250.6
Marine operating revenue	—			—			3.1			14.6			—			17.7
Other revenue	14.6			2.0			—			1.7			—			18.3
Total Revenues	209.5			49.2			4.2			23.7			—			286.6
Expenses
Maintenance expense	61.4			11.5			0.2			—			—			73.1
Marine operating expense	—			—			3.4			11.6			—			15.0
Depreciation expense	41.5			11.7			—			5.5			—			58.7
Operating lease expense	26.9			—			—			—			—			26.9
Other operating expense	4.8			1.4			—			0.4			—			6.6
Total Expenses	134.6			24.6			3.6			17.5			—			180.3
Other Income (Expense)
Net gain on asset dispositions	24.8			2.4			(0.4		)	1.3			—			28.1
Interest expense, net	(24.6		)	(6.2		)	(1.4		)	(6.8		)	(3.0		)	(42.0		)
Other (expense) income	(3.4		)	—			—			0.3			(0.3		)	(3.4		)
Share of affiliates' earnings (pretax)	3.3			(0.1		)	—			10.9			—			14.1
Segment Profit (Loss)	$	75.0		$	20.7		$	(1.2	)	$	11.9		$	(3.3	)	103.1
Selling, general and administrative expense																42.7
Income taxes (including $4.2 related to affiliates' earnings)																18.3
Net Income																$	42.1
Net Gain on Asset Dispositions
Asset Remarketing Income:
Disposition gains on owned assets	$	21.6		$	—		$	—		$	—		$	—		$	21.6
Residual sharing income	0.6			—			—			1.2			—			1.8
Non-remarketing disposition gains (1)	2.6			2.4			—			—			—			5.0
Asset impairment	—			—			(0.4		)	0.1			—			(0.3		)
	$	24.8		$	2.4		$	(0.4	)	$	1.3		$	—		$	28.1
Capital Expenditures
Portfolio investments and capital additions	$	396.0		$	39.3		$	8.3		$	—		$	1.9		$	445.5
Selected Balance Sheet Data at December 31, 2014
Investments in affiliated companies	$	17.2		$	1.8		$	—		$	338.7		$	—		$	357.7
Identifiable assets	$	4,358.3		$	1,229.4		$	286.7		$	813.3		$	249.8		$	6,937.5

_____

(1) Includes scrapping gains.

Financial Data of Business Segments

The following tables show certain segment data for each of our business segments (in millions):

	Rail North America			Rail International			ASC			Portfolio Management			Other			GATX Consolidated
Three Months Ended March 31, 2015
Profitability
Revenues
Lease revenue	$	228.5		$	42.1		$	1.0		$	6.7		$	—		$	278.3
Marine operating revenue	—			—			7.0			17.2			—			24.2
Other revenue	14.7			1.9			—			0.6			—			17.2
Total Revenues	243.2			44.0			8.0			24.5			—			319.7
Expenses
Maintenance expense	69.2			8.9			0.2			—			—			78.3
Marine operating expense	—			—			6.9			12.0			—			18.9
Depreciation expense	52.3			10.7			—			5.5			—			68.5
Operating lease expense	20.7			—			—			—			—			20.7
Other operating expense	5.5			0.9			—			0.9			—			7.3
Total Expenses	147.7			20.5			7.1			18.4			—			193.7
Other Income (Expense)
Net gain on asset dispositions	36.8			4.9			—			3.6			—			45.3
Interest expense, net	(24.5		)	(6.5		)	(1.3		)	(5.2		)	(3.4		)	(40.9		)
Other expense	(2.2		)	—			—			—			(1.8		)	(4.0		)
Share of affiliates' earnings (pretax)	0.2			(0.1		)	—			11.4			—			11.5
Segment Profit (Loss)	$	105.8		$	21.8		$	(0.4	)	$	15.9		$	(5.2	)	137.9
Selling, general and administrative expense																45.7
Income taxes (including $3.0 related to affiliates' earnings)																30.0
Net Income																$	62.2
Net Gain on Asset Dispositions
Asset Remarketing Income:
Disposition gains on owned assets	$	35.9		$	—		$	—		$	2.0		$	—		$	37.9
Residual sharing income	0.2			—			—			1.6			—			1.8
Non-remarketing disposition gains (1)	0.7			5.0			—			—			—			5.7
Asset impairment	—			(0.1		)	—			—			—			(0.1		)
	$	36.8		$	4.9		$	—		$	3.6		$	—		$	45.3
Capital Expenditures
Portfolio investments and capital additions	$	129.8		$	41.4		$	9.3		$	—		$	0.4		$	180.9
Selected Balance Sheet Data at March 31, 2015
Investments in affiliated companies	$	13.9		$	1.6		$	—		$	344.2		$	—		$	359.7
Identifiable assets	$	4,518.9		$	1,161.0		$	273.5		$	794.4		$	308.6		$	7,056.4

_____

(1) Includes scrapping gains.

	Rail North America			Rail International			ASC			Portfolio Management			Other			GATX Consolidated
Three Months Ended March 31, 2014
Profitability
Revenues
Lease revenue	$	194.9		$	47.2		$	1.1		$	7.4		$	—		$	250.6
Marine operating revenue	—			—			3.1			14.6			—			17.7
Other revenue	14.6			2.0			—			1.7			—			18.3
Total Revenues	209.5			49.2			4.2			23.7			—			286.6
Expenses
Maintenance expense	61.4			11.5			0.2			—			—			73.1
Marine operating expense	—			—			3.4			11.6			—			15.0
Depreciation expense	41.5			11.7			—			5.5			—			58.7
Operating lease expense	26.9			—			—			—			—			26.9
Other operating expense	4.8			1.4			—			0.4			—			6.6
Total Expenses	134.6			24.6			3.6			17.5			—			180.3
Other Income (Expense)
Net gain on asset dispositions	24.8			2.4			(0.4		)	1.3			—			28.1
Interest expense, net	(24.6		)	(6.2		)	(1.4		)	(6.8		)	(3.0		)	(42.0		)
Other (expense) income	(3.4		)	—			—			0.3			(0.3		)	(3.4		)
Share of affiliates' earnings (pretax)	3.3			(0.1		)	—			10.9			—			14.1
Segment Profit (Loss)	$	75.0		$	20.7		$	(1.2	)	$	11.9		$	(3.3	)	103.1
Selling, general and administrative expense																42.7
Income taxes (including $4.2 related to affiliates' earnings)																18.3
Net Income																$	42.1
Net Gain on Asset Dispositions
Asset Remarketing Income:
Disposition gains on owned assets	$	21.6		$	—		$	—		$	—		$	—		$	21.6
Residual sharing income	0.6			—			—			1.2			—			1.8
Non-remarketing disposition gains (1)	2.6			2.4			—			—			—			5.0
Asset impairment	—			—			(0.4		)	0.1			—			(0.3		)
	$	24.8		$	2.4		$	(0.4	)	$	1.3		$	—		$	28.1
Capital Expenditures
Portfolio investments and capital additions	$	396.0		$	39.3		$	8.3		$	—		$	1.9		$	445.5
Selected Balance Sheet Data at December 31, 2014
Investments in affiliated companies	$	17.2		$	1.8		$	—		$	338.7		$	—		$	357.7
Identifiable assets	$	4,358.3		$	1,229.4		$	286.7		$	813.3		$	249.8		$	6,937.5

_____

(1) Includes scrapping gains.