Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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):

	2018			2017
Deferred Tax Liabilities
Book/tax basis difference due to depreciation	$	890.7		$	872.8
Investments in affiliated companies	36.2			43.6
Lease accounting	12.2			9.0
Other	1.9			6.3
Total deferred tax liabilities	$	941.0		$	931.7
Deferred Tax Assets
Federal net operating loss	—			4.1
Alternative minimum tax credit	3.4			8.0
Foreign tax credit	0.2			—
Valuation allowance on foreign tax credit	(0.2		)	—
State net operating loss	26.4			29.5
Valuation allowance on state net operating loss	(12.6		)	(10.3		)
Foreign net operating loss	2.1			2.1
Valuation allowance on foreign net operating loss	(0.3		)	(0.4		)
Accruals not currently deductible for tax purposes	24.8			21.7
Allowance for losses	1.1			1.1
Pension and post-retirement benefits	17.8			19.6
Other	0.5			2.6
Total deferred tax assets	$	63.2		$	78.0
Net deferred tax liabilities	$	877.8		$	853.7

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):

	2018		2017		2016
Domestic	$	108.9	$	124.5	$	211.0
Foreign	86.2		89.9		94.4
Total	$	195.1	$	214.4	$	305.4

Consolidated federal income taxes

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

	2018			2017			2016
Current
Domestic:
Federal	$	(3.3	)	$	(1.1	)	$	6.0
State and local	0.7			(0.1		)	—
	$	(2.6	)	$	(1.2	)	$	6.0
Foreign	17.5			18.0			16.9
	$	14.9		$	16.8		$	22.9
Deferred
Domestic:
Federal	2.1			(270.0		)	55.8
State and local	8.7			1.2			10.5
	$	10.8		$	(268.8	)	$	66.3
Foreign	8.4			8.3			6.5
	$	19.2		$	(260.5	)	$	72.8
Income taxes	$	34.1		$	(243.7	)	$	95.7

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):

	2018			2017			2016
Income taxes at federal statutory rate	$	41.0		$	75.0		$	106.9
Adjust for effect of:
Foreign tax credits	(1.4		)	—			(7.8		)
Foreign earnings taxed at applicable statutory rates	7.8			(5.5		)	(9.7		)
Corporate owned life insurance	(1.0		)	(0.9		)	(1.7		)
State income taxes	5.2			(0.5		)	6.8
State deferred tax rate change impact	—			5.0			—
Other	(1.0		)	(0.9		)	1.2
Tax Act:
Revaluation of deferred tax liabilities	9.4			(371.4		)	—
Transition tax on foreign earnings and profits	(23.1		)	57.2			—
Other	(2.8		)	(1.7		)	—
Total Tax Act impact	$	(16.5	)	$	(315.9	)	$	—
Income taxes	$	34.1		$	(243.7	)	$	95.7
Effective income tax rate	17.5		%	(113.7		)%	31.3		%