Investments in affiliated companies represent investments in and loans to domestic and foreign affiliates, and primarily include companies offering lease financing and related services for customers operating rail and marine assets, as well as entities that lease aircraft spare engines. Loan amounts included in investments in affiliated companies were $11.2 million as of December 31, 2015 and $16.3 million as of December 31, 2014.

In 2015, as a result of our decision to exit the majority of our marine investments within our Portfolio Management segment, we recorded a $19.0 million impairment loss and then sold our 50% interest in the Cardinal Marine joint venture. We received aggregate cash proceeds of $24.7 million from this sale.

In 2014, we sold our investments in the Intermodal Investment Fund V and Intermodal Investment Fund VII affiliates. As a result of these sales, we received aggregate cash proceeds of $18.3 million.

In 2013, we dissolved our Singco and Somargas marine affiliates, taking direct ownership of five liquefied gas carrying vessels with a fair value of $151.8 million. In connection with the dissolution we paid $101.3 million, primarily to satisfy our share of the affiliates' external debt, and recognized a pretax gain of $2.5 million, which is recorded in share of affiliates' earnings. The vessels continue to operate in a vessel pooling arrangement that our former partner manages.

In 2013, we sold our 37.5% interest in AAE to our partner, Ahaus Alstätter Eisenbahn Holding AG (“AAE Holding”), and recognized a pretax gain of $9.3 million, which we reported as part of our share of affiliates' earnings. The sale price of $114.1 million consisted of a cash payment at closing of $23.0 million and a seller loan of €67.5 million ($91.1 million) at a market interest rate. The loan was paid in full in January 2015.

The following table presents our most significant investments in affiliated companies and our ownership percentage in those companies by segment as of December 31, 2015 (in millions):



	Segment	Investment		Percentage Ownership
Rolls-Royce & Partners Finance (1)	Portfolio Management	$	335.1	50.0	%
Adler Funding LLC	Rail North America	11.7		12.5	%
Other affiliates	Various	1.7		Various
Investments in Affiliated Companies		$	348.5

__________

(1) Combined investment balances of fifteen separate joint ventures (collectively, the "RRPF affiliates").

The following table shows our share of affiliates’ earnings by segment for the years ending December 31 (in millions):



	2015			2014			2013
Rail North America	$	0.5		$	7.9		$	10.3
Rail International	(0.3		)	(0.3		)	21.1
Portfolio Management (1)	45.2			60.2			60.9
Share of affiliates' earnings (pretax)	45.4			67.8			92.3
Income taxes	0.5			(18.3		)	(16.5		)
Share of Affiliates' Earnings	$	45.9		$	49.5		$	75.8

__________

(1) Includes a $19.0 million impairment loss in 2015.

The following table shows our cash investments in and distributions and loan payments from our affiliates by segment for the years ended December 31 (in millions):



	Cash Investments						Cash Distributions (1)
	2015		2014		2013		2015		2014		2013
Rail North America	$	—	$	—	$	—	$	5.1	$	20.0	$	—
Portfolio Management	15.5		15.3		101.3		32.2		34.2		47.0
	$	15.5	$	15.3	$	101.3	$	37.3	$	54.2	$	47.0

__________


(1)	Cash distributions exclude proceeds from sales of affiliates of $24.7 million in 2015, $19.4 million in 2014, and $55.6 million in 2013.

Summarized Financial Data of Affiliates

The following table shows the aggregated operating results for the years ended December 31 for the affiliated companies we held at December 31 (in millions):



	2015		2014		2013
Revenues	$	339.3	$	339.0	$	334.5
Gains on sales of assets	37.6		33.7		43.5
Net income	121.4		99.6		108.6

The following table shows aggregated summarized balance sheet data for our affiliated companies as of December 31 (in millions):



	2015		2014
Current assets	$	185.0	$	211.6
Noncurrent assets	3,254.1		3,195.1
Total assets	$	3,439.1	$	3,406.7

Current liabilities	$	285.5	$	378.4
Noncurrent liabilities	2,512.2		2,388.2
Shareholders’ equity	641.4		640.1
Total liabilities and shareholders' equity	$	3,439.1	$	3,406.7

Summarized Financial Data for the RRPF Affiliates

As noted above, our affiliate investments include 50% interests in each of the RRPF affiliates, a collection of fifteen domestic and foreign joint ventures with Rolls-Royce plc (or affiliates thereof, collectively “Rolls-Royce”), a leading manufacturer of commercial aircraft jet engines. The RRPF affiliates are primarily engaged in two business activities: lease financing of aircraft spare engines to a diverse group of commercial aircraft operators worldwide and lease financing of aircraft spare engines to Rolls-Royce for use in their engine maintenance programs. In aggregate, the RRPF affiliates own 436 aircraft engines at December 31, 2015, of which 224 were on lease to Rolls-Royce. Aircraft engines are generally depreciated over a useful life of 25 years to an estimated residual value. Lease terms vary but typically range from 7 to 10 years. Rolls-Royce manages each of the RRPF affiliates and also performs substantially all required maintenance activities. Our share of affiliates' earnings (after-tax) from the RRPF affiliates was $58.4 million in 2015, $42.2 million in 2014, and $46.5 million in 2013.

We derived the following financial information from the combined financial statements of the RRPF affiliates.

The following table shows condensed income statements of the RRPF affiliates for the years ending December 31 (in millions):



	2015			2014			2013
Lease revenue from third parties	$	191.4		$	176.9		$	147.6
Lease revenue from Rolls-Royce	138.7			124.7			119.7
Depreciation expense	(166.1		)	(140.7		)	(120.2		)
Interest expense	(56.7		)	(59.5		)	(65.8		)
Other expenses	(8.8		)	(11.8		)	(10.2		)
Gains on sales of assets	33.1			22.7			35.2
Income before income taxes	131.6			112.3			106.3
Income tax benefits (provision) (1)	(9.0		)	(17.3		)	0.4
Net income	$	122.6		$	95.0		$	106.7

_________


(1)	Represents income taxes directly attributable to the RRPF affiliates in the United Kingdom. Several of the RRPF affiliates are flow through entities and income taxes are incurred at the owner level. Amounts shown for 2015 and 2013 include deferred income tax benefits of approximately $15.4 million and $15.2 million, attributable to statutory rate decreases enacted in the United Kingdom.

The following table shows the condensed balance sheets of the RRPF affiliates as of December 31 (in millions):



	2015		2014
Current assets	$	173.4	$	146.3
Noncurrent assets, including operating assets, net of accumulated depreciation of $993.6 and $862.8 (a)	3,161.4		2,988.1
Total assets	$	3,334.8	$	3,134.4

Current liabilities, excluding debt	$	85.1	$	74.4
Debt obligations	2,391.1		2,295.7
Other liabilities	231.4		219.4
Shareholders’ equity	627.2		544.9
Total liabilities and shareholders' equity	$	3,334.8	$	3,134.4

_________

(a) All operating assets were pledged as collateral for long-term debt obligations.

The following table shows contractual future lease receipts from noncancelable leases of the RRPF affiliates as of December 31, 2015 (in millions):



	Rolls-Royce		Third Parties		Total
2016	$	144.1	$	157.7	$	301.8
2017	122.9		147.5		270.4
2018	119.0		126.9		245.9
2019	114.0		84.5		198.5
2020	93.3		72.4		165.7
Thereafter	239.5		247.2		486.7
	$	832.8	$	836.2	$	1,669.0

The following table shows maturities of debt obligations of the RRPF affiliates as of December 31, 2015 (in millions):



2016	$	187.6
2017	279.6
2018	134.3
2019	238.2
2020	470.7
Thereafter	1,076.7
Total debt principal (1)	$	2,387.1

_________

(1) All debt obligations are nonrecourse to the shareholders.