Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Components of Deferred tax Assets and Liabilities

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



	2017			2016
Deferred Tax Liabilities
Book/tax basis difference due to depreciation	$	872.8		$	1,119.1
Investments in affiliated companies	43.6			69.5
Lease accounting	9.0			11.1
Other	6.3			1.0
Total deferred tax liabilities	931.7			1,200.7
Deferred Tax Assets
Federal net operating loss	4.1			—
Alternative minimum tax credit	8.0			8.0
State net operating loss	29.5			25.4
Valuation allowance on state net operating loss	(10.3		)	(12.9		)
Foreign net operating loss	2.1			2.9
Valuation allowance on foreign net operating loss	(0.4		)	(0.3		)
Accruals not currently deductible for tax purposes	21.7			26.7
Allowance for losses	1.1			1.5
Pension and post-retirement benefits	19.6			30.9
Other	2.6			29.1
Total deferred tax assets	78.0			111.3
Net deferred tax liabilities	$	853.7		$	1,089.4

Income before income taxes

The following table shows the components of income before income taxes and share of affiliates' earnings for the years ending December 31 (in millions):



	2017		2016		2015
Domestic	$	124.5	$	211.0	$	174.7
Foreign	89.9		94.4		95.6
Total	$	214.4	$	305.4	$	270.3

Consolidated federal income taxes

The following table shows income taxes for the years ending December 31 (in millions):



	2017			2016		2015
Current
Domestic:
Federal	$	(1.1	)	$	6.0	$	5.6
State and local	(0.1		)	—		(0.2		)
	(1.2		)	6.0		5.4
Foreign	18.0			16.9		15.3
	16.8			22.9		20.7
Deferred
Domestic:
Federal	(270.0		)	55.8		44.7
State and local	1.2			10.5		33.7
	(268.8		)	66.3		78.4
Foreign	8.3			6.5		11.8
	(260.5		)	72.8		90.2
Income taxes	$	(243.7	)	$	95.7	$	110.9

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):



	2017			2016			2015
Income taxes at federal statutory rate	$	75.0		$	106.9		$	94.6
Adjust for effect of:
Foreign tax credits	—			(7.8		)	—
Foreign earnings taxed at lower rates	(5.5		)	(9.7		)	(6.2		)
Corporate owned life insurance	(0.9		)	(1.7		)	(0.9		)
State income taxes	(0.5		)	6.8			7.6
State tax rate change impact	5.0			—			14.1
Other	(0.9		)	1.2			1.7
Tax Cuts and Jobs Act
Revaluation of deferred tax liabilities	(371.4		)	—			—
Transition tax on non-U.S. earnings and profits	57.2			—			—
Other	(1.7		)	—			—
Total Tax Act Impact	(315.9		)	—			—
Income taxes	$	(243.7	)	$	95.7		$	110.9
Effective income tax rate	(113.7		)%	31.3		%	41.0		%