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Financial Data of Business Segments
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Financial Data of Business Segments Financial Data of Business Segments
The financial data presented below depicts the profitability, financial position, and capital expenditures of each of our business segments.

We lease, operate, manage, and remarket long-lived, widely-used assets, primarily in the rail market. We report our financial results through three primary business segments: Rail North America, Rail International, and Portfolio Management. Historically, we also reported financial results for American Steamship Company ("ASC") as a fourth segment.

On May 14, 2020, we completed the sale of our ASC business, subject to customary post-closing adjustments. As a result, ASC is now reported as discontinued operations, and financial data for the ASC segment has been segregated and presented as discontinued operations for all periods presented. See "Note 16. Discontinued Operations" of this Form 10-Q for additional information.

Rail North America is composed of our operations in the United States, Canada, and Mexico. Rail North America primarily provides railcars pursuant to full-service leases under which it maintains the railcars, pays ad valorem taxes and insurance, and provides other ancillary services.

Rail International is composed of our operations in Europe ("GATX Rail Europe" or "GRE"), India ("GRI"), and Russia ("Rail Russia"). GRE leases railcars to customers throughout Europe pursuant to full-service leases under which it maintains the railcars and provides value-adding services according to customer requirements.

Portfolio Management is composed primarily of our ownership in the RRPF affiliates, a group of joint ventures with Rolls-Royce plc that lease aircraft spare engines, as well as five liquefied gas carrying vessels (the "Specialized Gas Vessels").

Segment profit is an internal performance measure used by the Chief Executive Officer to assess the profitability of each segment. Segment profit includes all revenues, expenses, pre-tax earnings from affiliates, and net gains on asset dispositions that are directly attributable to each segment. We allocate interest expense to the segments based on what we believe to be the appropriate risk-adjusted borrowing costs for each segment. Segment profit excludes selling, general and administrative expenses, income taxes, and certain other amounts not allocated to the segments. These amounts are included in Other.
The following tables show certain segment data for each of our business segments (in millions):


Rail
North America
Rail International
Portfolio Management		OtherGATX Consolidated
Three Months Ended September 30, 2020
Revenues
Lease revenue
$208.7 $64.5 $0.1 $— $273.3 
Marine operating revenue
— — 5.0 — 5.0 
Other revenue
23.4 2.6 0.1 — 26.1 
Total Revenues
232.1 67.1 5.2 — 304.4 
Expenses
Maintenance expense
63.2 13.5 — — 76.7 
Marine operating expense
— — 3.6 — 3.6 
Depreciation expense
65.0 17.1 1.3 — 83.4 
Operating lease expense
12.3 — — — 12.3 
Other operating expense
6.6 1.6 0.1 — 8.3 
Total Expenses
147.1 32.2 5.0 — 184.3 
Other Income (Expense)
Net gain on asset dispositions
7.9 0.5 0.5 — 8.9 
Interest (expense) income, net
(35.7)(11.9)(3.2)2.2 (48.6)
Other (expense) income
(1.1)0.5 — (0.6)(1.2)
Share of affiliates' pre-tax income
— — 46.8 — 46.8 
Segment profit
$56.1 $24.0 $44.3 $1.6 $126.0 
Less:
Selling, general and administrative expense
42.0 
Income taxes (includes $24.0 related to affiliates' earnings)
35.8 
Net income from continuing operations
$48.2 
Discontinued Operations, Net of Taxes
Net income from discontinued operations, net of taxes
$— 
Loss on sale of discontinued operations, net of taxes
(0.3)
Total discontinued operations, net of taxes
$(0.3)
Net income
$47.9 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$7.8 $0.2 $— $— $8.0 
Residual sharing income
0.1 — 0.5 — 0.6 
Non-remarketing net gains (1)
— 0.3 — — 0.3 
$7.9 $0.5 $0.5 $— $8.9 
Capital Expenditures
Portfolio investments and capital additions
$204.1 $45.3 $— $0.5 $249.9 
Selected Balance Sheet Data at September 30, 2020
Investments in affiliated companies
$0.2 $— $582.3 $— $582.5 
Identifiable assets from continuing operations
$5,838.9 $1,654.3 $709.7 $487.4 $8,690.3 
__________
(1) Includes net gains (losses) from scrapping of railcars.


Rail
North America
Rail International
Portfolio Management		OtherGATX Consolidated
Three Months Ended September 30, 2019
Revenues
Lease revenue
$214.6 $55.6 $0.3 $— $270.5 
Marine operating revenue
— — 1.9 — 1.9 
Other revenue
23.9 2.4 0.1 — 26.4 
Total Revenues
238.5 58.0 2.3 — 298.8 
Expenses
Maintenance expense
64.0 12.2 — — 76.2 
Marine operating expense
— — 3.4 — 3.4 
Depreciation expense
63.9 14.5 1.6 — 80.0 
Operating lease expense
13.7 — — — 13.7 
Other operating expense
6.2 1.4 0.1 — 7.7 
Total Expenses
147.8 28.1 5.1 — 181.0 
Other Income (Expense)
Net gain on asset dispositions
4.3 0.3 0.5 — 5.1 
Interest (expense) income, net
(33.1)(10.2)(2.8)1.4 (44.7)
Other expense
(1.0)(0.1)— (0.6)(1.7)
Share of affiliates' pre-tax income
— — 15.8 — 15.8 
Segment profit
$60.9 $19.9 $10.7 $0.8 $92.3 
Less:
Selling, general and administrative expense
42.6 
Income taxes (includes $3.0 related to affiliates' earnings)
12.5 
Net income from continuing operations
$37.2 
Discontinued Operations, Net of Taxes
Net income from discontinued operations, net of taxes
$7.9 
Gain on sale of discontinued operations, net of taxes
— 
Total discontinued operations, net of taxes
$7.9 
Net income
$45.1 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$4.4 $— $— $— $4.4 
Residual sharing income
0.1 — 0.5 — 0.6 
Non-remarketing net gains (1)
(0.2)0.3 — — 0.1 
$4.3 $0.3 $0.5 $— $5.1 
Capital Expenditures
Portfolio investments and capital additions
$138.1 $51.8 $— $0.9 $190.8 
Selected Balance Sheet Data at December 31, 2019
Investments in affiliated companies
$0.2 $— $512.4 $— $512.6 
Identifiable assets from continuing operations
$5,646.7 $1,486.7 $653.7 $206.9 $7,994.0 
Identifiable assets from discontinued operations
$— $— $— $— $291.1 
__________
(1) Includes net gains (losses) from scrapping of railcars.


Rail
North America
Rail International
Portfolio Management		OtherGATX Consolidated
Nine Months Ended September 30, 2020
Revenues
Lease revenue
$630.8 $181.9 $0.6 $— $813.3 
Marine operating revenue
— — 11.6 — 11.6 
Other revenue
72.5 6.5 0.4 — 79.4 
Total Revenues
703.3 188.4 12.6 — 904.3 
Expenses
Maintenance expense
206.5 38.3 — — 244.8 
Marine operating expense
— — 10.9 — 10.9 
Depreciation expense
193.0 48.4 4.0 — 245.4 
Operating lease expense
38.1 — — — 38.1 
Other operating expense
20.8 4.9 0.3 — 26.0 
Total Expenses
458.4 91.6 15.2 — 565.2 
Other Income (Expense)
Net gain on asset dispositions
39.9 0.8 1.6 — 42.3 
Interest (expense) income, net
(103.5)(34.0)(9.1)5.1 (141.5)
Other expense
(3.2)(5.7)— (3.3)(12.2)
Share of affiliates' pre-tax income
— — 93.2 — 93.2 
Segment profit
$178.1 $57.9 $83.1 $1.8 $320.9 
Less:
Selling, general and administrative expense
125.8 
Income taxes (includes $33.1 related to affiliates' earnings)
62.7 
Net income from continuing operations
$132.4 
Discontinued operations, net of taxes
Net loss from discontinued operations, net of taxes
$(2.2)
Gain on sale of discontinued operations, net of taxes
3.3 
Total discontinued operations, net of taxes
$1.1 
Net income
$133.5 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$39.1 $0.2 $0.1 $— $39.4 
Residual sharing income
0.3 — 1.5 — 1.8 
Non-remarketing net gains (1)
0.5 0.6 — — 1.1 
$39.9 $0.8 $1.6 $— $42.3 
Capital Expenditures
Portfolio investments and capital additions
$474.6 $164.5 $0.3 $2.0 $641.4 
__________
(1) Includes net gains (losses) from scrapping of railcars.


Rail
North America
Rail International
Portfolio Management		OtherGATX Consolidated
Nine Months Ended September 30, 2019
Revenues
Lease revenue
$654.3 $161.7 $0.8 $— $816.8 
Marine operating revenue
— — 4.4 — 4.4 
Other revenue
73.7 6.2 0.5 — 80.4 
Total Revenues
728.0 167.9 5.7 — 901.6 
Expenses
Maintenance expense
199.8 35.5 — — 235.3 
Marine operating expense
— — 12.0 — 12.0 
Depreciation expense
192.6 42.7 4.9 — 240.2 
Operating lease expense
41.1 — — — 41.1 
Other operating expense
19.0 4.2 0.3 — 23.5 
Total Expenses
452.5 82.4 17.2 — 552.1 
Other Income (Expense)
Net gain on asset dispositions
44.6 1.2 1.1 — 46.9 
Interest (expense) income, net
(101.4)(30.2)(8.3)4.6 (135.3)
Other expense
(3.6)(0.5)— (1.2)(5.3)
Share of affiliates' pre-tax income
— — 53.6 — 53.6 
Segment profit
$215.1 $56.0 $34.9 $3.4 $309.4 
Less:
Selling, general and administrative expense
129.6 
Income taxes (includes $10.0 related to affiliates' earnings)
41.1 
Net income from continuing operations
$138.7 
Discontinued operations, net of taxes
Net income from discontinued operations, net of taxes
$15.9 
Gain on sale of discontinued operations, net of taxes
— 
Total discontinued operations, net of taxes
$15.9 
Net income
$154.6 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$40.9 $— $— $— $40.9 
Residual sharing income
0.3 — 1.1 — 1.4 
Non-remarketing net gains (1)
3.4 1.2 — — 4.6 
$44.6 $1.2 $1.1 $— $46.9 
Capital Expenditures
Portfolio investments and capital additions
$342.4 $158.6 $— $2.8 $503.8 
__________
(1) Includes net gains (losses) from scrapping of railcars.