Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of Deferred tax Assets and Liabilities

The following table shows the significant components of our deferred tax liabilities and assets as of December 31 (in millions):

	2019			2018
Deferred Tax Liabilities
Book/tax basis difference due to depreciation	$	930.7		$	890.7
Right-of-use assets	103.9			—
Investments in affiliated companies	37.3			36.2
Lease accounting	39.8			12.2
Other	3.2			1.9
Total deferred tax liabilities	$	1,114.9		$	941.0
Deferred Tax Assets
Lease liability	108.6			—
Federal net operating loss	15.1			—
Alternative minimum tax credit	1.7			3.4
Foreign tax credit	0.8			0.2
Valuation allowance on foreign tax credit	(0.8		)	(0.2		)
State net operating loss	31.1			26.4
Valuation allowance on state net operating loss	(12.9		)	(12.6		)
Foreign net operating loss	2.2			2.1
Valuation allowance on foreign net operating loss	—			(0.3		)
Accruals not currently deductible for tax purposes	23.2			24.8
Allowance for losses	1.2			1.1
Pension and post-retirement benefits	16.8			17.8
Other	3.6			0.5
Total deferred tax assets	$	190.6		$	63.2
Net deferred tax liabilities	$	924.3		$	877.8

Income before income taxes

The following table shows the components of income before income taxes, excluding affiliates, for the years ended December 31 (in millions):

	2019		2018		2017
Domestic	$	77.0	$	108.9	$	124.5
Foreign	106.1		86.2		89.9
Total	$	183.1	$	195.1	$	214.4

Consolidated federal income taxes

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

	2019			2018			2017
Current
Domestic:
Federal	$	(1.7	)	$	(3.3	)	$	(1.1	)
State and local	(0.1		)	0.7			(0.1		)
	$	(1.8	)	$	(2.6	)	$	(1.2	)
Foreign	19.6			17.5			18.0
	$	17.8		$	14.9		$	16.8
Deferred
Domestic:
Federal	16.7			2.1			(270.0		)
State and local	4.0			8.7			1.2
	$	20.7		$	10.8		$	(268.8	)
Foreign	9.9			8.4			8.3
	$	30.6		$	19.2		$	(260.5	)
Income taxes	$	48.4		$	34.1		$	(243.7	)

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 ended December 31 (in millions):

	2019			2018			2017
Income taxes at federal statutory rate	$	38.5		$	41.0		$	75.0
Adjust for effect of:
Foreign tax credits	—			(1.4		)	—
Foreign earnings taxed at applicable statutory rates	9.8			7.8			(5.5		)
Foreign deferred tax rate change impact	(2.8		)	—			—
Corporate owned life insurance	(0.8		)	(1.0		)	(0.9		)
State income taxes	3.2			5.2			(0.5		)
State deferred tax rate change impact	—			—			5.0
Other	0.5			(1.0		)	(0.9		)
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	$	48.4		$	34.1		$	(243.7	)
Effective income tax rate	26.4		%	17.5		%	(113.7		)%