Investments in affiliated companies represent investments in and loans to domestic and foreign affiliates, and primarily include entities that lease aircraft spare engines and railcars. The loan amount included in investments in affiliated companies was zero and $6.5 million at December 31, 2018 and 2017.

During 2017, we recorded an impairment loss of $3.0 million to reflect a decline in the value of the railcars remaining in the Adler Funding LLC fleet. As of December 31, 2018, all railcar assets have been sold, and the partnership is in the process of winding down remaining activities.

In 2015, as a result of our decision to exit the majority of our marine investments within our Portfolio Management segment, we sold our 50% interest in the Cardinal Marine joint venture. In 2016 and 2017, we recognized gains of $1.0 million and $1.1 million resulting from additional proceeds received related to the sale.

The following table presents our investments in affiliated companies and our ownership percentage in those companies by segment as of December 31, 2018 (in millions):



	Segment	Investment		Percentage Ownership
Rolls-Royce & Partners Finance (1)	Portfolio Management	$	464.3	50.0	%
Adler Funding LLC	Rail North America	0.2		12.5	%
Investments in Affiliated Companies		$	464.5

__________

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

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



	2018			2017			2016
Rail North America (1)	$	0.6		$	(2.4	)	$	0.5
Rail International	—			(0.1		)	(0.2		)
Portfolio Management	60.5			58.4			52.8
Share of affiliates' pre-tax income	61.1			55.9			53.1
Income taxes	(10.8		)	(12.0		)	(5.7		)
Share of Affiliates' Income	$	50.3		$	43.9		$	47.4

__________

(1) Amount for 2017 includes impairment losses of $3.0 million.

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)
	2018		2017		2016		2018		2017		2016
Rail North America	$	—	$	—	$	—	$	6.3	$	0.7	$	1.5
Portfolio Management	14.1		36.6		25.0		35.2		30.2		35.2
Total	$	14.1	$	36.6	$	25.0	$	41.5	$	30.9	$	36.7

__________

(1) Cash distributions exclude proceeds from sales of affiliates of zero in 2018, $2.3 million in 2017, and $1.0 million in 2016.

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):



	2018		2017		2016
Revenues	$	458.8	$	350.7	$	333.7
Net gains on sales of assets	5.8		27.4		23.6
Net income	120.5		100.4		99.3

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



	2018		2017
Current assets	$	306.6	$	144.8
Noncurrent assets	4,428.7		3,847.2
Total assets	$	4,735.3	$	3,992.0

Current liabilities	$	830.6	$	446.8
Noncurrent liabilities	3,013.0		2,704.9
Shareholders’ equity	891.7		840.3
Total liabilities and shareholders' equity	$	4,735.3	$	3,992.0

Summarized Financial Data for the RRPF Affiliates

Our affiliate investments include 50% interests in each of the RRPF affiliates, a group of seventeen 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 owned 452 aircraft engines at December 31, 2018, of which 253 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 3 to 12 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 $49.8 million in 2018, $44.8 million in 2017, and $46.6 million in 2016.

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):



	2018			2017			2016
Lease revenue from third parties	$	200.5		$	168.8		$	173.7
Lease revenue from Rolls-Royce	232.7			176.0			150.2
Depreciation expense	(195.6		)	(176.4		)	(171.6		)
Interest expense	(94.3		)	(64.3		)	(59.2		)
Other expenses	(28.1		)	(8.9		)	(8.0		)
Net gains on sales of assets	6.1			20.5			19.1
Income before income taxes	121.3			115.7			104.2
Income taxes (1)	(18.1		)	(13.2		)	(6.9		)
Net income	$	103.2		$	102.5		$	97.3

_________


(1)	Represents income taxes directly attributable to the RRPF affiliates in the United Kingdom. Certain of the RRPF affiliates are disregarded entities for income tax purposes and, as a result, income taxes are incurred at the shareholder level. Amounts shown for 2016 are net of income tax benefits of approximately $7.8 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):



	2018		2017
Current assets	$	304.7	$	135.3
Noncurrent assets, including operating assets, net of accumulated depreciation of $1,024.7 and $943.5 (a)	4,428.7		3,772.4
Total assets	$	4,733.4	$	3,907.7

Accounts payable and accrued expenses	$	97.9	$	53.9
Debt:
Current	732.1		392.0
Noncurrent, net of adjustments for hedges	2,733.6		2,359.1
Other liabilities	279.4		274.1
Shareholders’ equity	890.4		828.6
Total liabilities and shareholders' equity	$	4,733.4	$	3,907.7

_________

(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, 2018 (in millions):



	Rolls-Royce		Third Parties		Total
2019	$	270.1	$	173.0	$	443.1
2020	258.7		153.5		412.2
2021	246.4		131.3		377.7
2022	235.4		115.9		351.3
2023	213.9		101.6		315.5
Thereafter	689.1		312.1		1,001.2
Total	$	1,913.6	$	987.4	$	2,901.0

The following table shows the scheduled principal payments of debt obligations of the RRPF affiliates as of December 31, 2018 (in millions):



2019 (1)	$	732.1
2020	420.3
2021	286.0
2022	425.6
2023	274.6
Thereafter	1,330.7
Total debt principal (2)	$	3,469.3

_______

(1) Includes $369.0 million outstanding on a credit facility and $259.0 million related to a bridge loan, both of which were refinanced in February, 2019 with long-term debt issuances.

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