XML 63 R41.htm IDEA: XBRL DOCUMENT

Fair Value Disclosure (Tables)

12 Months Ended

Dec. 31, 2020

Assets and liabilities at fair value recurring basis

The following tables show our derivative assets and liabilities that are measured at fair value (in millions):


	Balance Sheet Location	Fair Value December 31, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative Assets
Interest rate contracts (1)	Other assets	$	5.6	$	—	$	5.6	$	—
Foreign exchange contracts (1)	Other assets	0.4		—		0.4		—
Foreign exchange contracts (2)	Other assets	0.4		—		0.4		—

Total derivative assets		$	6.4	$	—	$	6.4	$	—
Derivative Liabilities
Interest rate contracts (1)	Other liabilities	$	—	$	—	$	—	$	—
Foreign exchange contracts (1)	Other liabilities	—		—		—		—
Foreign exchange contracts (2)	Other liabilities	—		—		—		—
Total derivative liabilities		$	—	$	—	$	—	$	—


	Balance Sheet Location	Fair Value December 31, 2019		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative Assets
Foreign exchange contracts (1)	Other assets	$	1.4	$	—	$	1.4	$	—
Foreign exchange contracts (1)	Other assets	6.9		—		6.9		—
Foreign exchange contracts (2)	Other assets	0.2		—		0.2		—
Total derivative assets		$	8.5	$	—	$	8.5	$	—
Derivative Liabilities
Interest rate contracts (1)	Other liabilities	$	0.6	$	—	$	0.6	$	—
Foreign exchange contracts (1)	Other liabilities	7.0		—		7.0		—
Foreign exchange contracts (2)	Other liabilities	6.0		—		6.0		—
Total derivative liabilities		$	13.6	$	—	$	13.6	$	—

_________

(1) Designated as hedges.

(2) Not designated as hedges.

Impact of GATX's Derivative Instrument On Income Statement and Other comprehensive income (loss)

The following table shows the amounts recorded on the balance sheet related to cumulative basis adjustments for fair value hedges as of December 31 (in millions):


	Carrying Amount of the Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
Line Item in the Balance Sheet in Which the Hedged Item is Included	2020		2019		2020		2019

Recourse debt	$	(303.6)	$	(449.9)	$	5.6	$	1.4

The following tables show the impacts of our derivative instruments on our statements of comprehensive income for the years ended December 31 (in millions):


	Amount of Loss (Gain) Recognized in Other Comprehensive Income						Location of Loss (Gain) Reclassified from Accumulated Other Comprehensive Income into Income	Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Income into Income
Derivative Designation	2020		2019		2018			2020		2019		2018
Derivatives in cash flow hedging relationships:							Interest expense	$	2.1	$	2.5	$	4.2
Interest rate contracts	$	(0.5)	$	0.5	$	—	Operating lease expense	—		—		0.1
Foreign exchange contracts	20.1		(19.5)		(12.6)		Other (income) expense	12.8		(14.3)		(11.7)
Total	$	19.6	$	(19.0)	$	(12.6)	Total	$	14.9	$	(11.8)	$	(7.4)

Fair value hedging instruments

The following tables show the impact of our fair value and cash flow hedge accounting relationships, as well as the impact of our non-designated derivatives, on the statements of comprehensive income for the years ended December 31 (in millions):


	Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
	Interest (expense), net		Other income (expense)		Operating lease (expense)
2020
Total amounts of income and expense presented in the statements of comprehensive income in which the effects of fair value or cash flow hedges are recorded	$	(190.3)	$	(13.0)	$	(49.3)
Gain (loss) on fair value hedging relationships
Interest rate contracts:
Hedged items	(4.2)		—		—
Derivatives designated as hedging instruments	4.2		—		—
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from accumulated other comprehensive income into income	(2.1)		—		—
Foreign exchange contracts:
Amount of gain (loss) reclassified from accumulated other comprehensive income into income (1)	—		(12.8)		—
Gain (loss) on non-designated derivative contracts	—		6.2		—


	Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
	Interest (expense), net		Other income (expense)		Operating lease (expense)
2019
Total amounts of income and expense presented in the statements of comprehensive income in which the effects of fair value or cash flow hedges are recorded	$	(180.5)	$	(7.3)	$	(54.4)
Gain (loss) on fair value hedging relationships
Interest rate contracts:
Hedged items	(9.0)		—		—
Derivatives designated as hedging instruments	9.0		—		—
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from accumulated other comprehensive income into income	(2.5)		—		—
Foreign exchange contracts:
Amount of gain (loss) reclassified from accumulated other comprehensive income into income (1)	—		14.3		—
Gain (loss) on non-designated derivative contracts	—		(1.7)		—


	Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
	Interest (expense), net		Other income (expense)		Operating lease (expense)
2018
Total amounts of income and expense presented in the statements of comprehensive income in which the effects of fair value or cash flow hedges are recorded	$	(162.9)	$	(21.7)	$	(49.6)
Gain (loss) on fair value hedging relationships
Interest rate contracts:
Hedged items	3.0		—		—
Derivatives designated as hedging instruments	(3.0)		—		—
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from accumulated other comprehensive income into income	(4.2)		—		(0.1)
Foreign exchange contracts:
Amount of gain (loss) reclassified from accumulated other comprehensive income into income (1)	—		11.7		—
Gain (loss) on non-designated derivative contracts	—		2.2		—

_________

(1) These amounts are substantially offset by foreign currency remeasurement adjustments on related hedged instruments, also recognized in other income (expense).

Cash flow hedging instruments


	Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
	Interest (expense), net		Other income (expense)		Operating lease (expense)
2020
Total amounts of income and expense presented in the statements of comprehensive income in which the effects of fair value or cash flow hedges are recorded	$	(190.3)	$	(13.0)	$	(49.3)
Gain (loss) on fair value hedging relationships
Interest rate contracts:
Hedged items	(4.2)		—		—
Derivatives designated as hedging instruments	4.2		—		—
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from accumulated other comprehensive income into income	(2.1)		—		—
Foreign exchange contracts:
Amount of gain (loss) reclassified from accumulated other comprehensive income into income (1)	—		(12.8)		—
Gain (loss) on non-designated derivative contracts	—		6.2		—


	Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
	Interest (expense), net		Other income (expense)		Operating lease (expense)
2019
Total amounts of income and expense presented in the statements of comprehensive income in which the effects of fair value or cash flow hedges are recorded	$	(180.5)	$	(7.3)	$	(54.4)
Gain (loss) on fair value hedging relationships
Interest rate contracts:
Hedged items	(9.0)		—		—
Derivatives designated as hedging instruments	9.0		—		—
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from accumulated other comprehensive income into income	(2.5)		—		—
Foreign exchange contracts:
Amount of gain (loss) reclassified from accumulated other comprehensive income into income (1)	—		14.3		—
Gain (loss) on non-designated derivative contracts	—		(1.7)		—


	Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
	Interest (expense), net		Other income (expense)		Operating lease (expense)
2018
Total amounts of income and expense presented in the statements of comprehensive income in which the effects of fair value or cash flow hedges are recorded	$	(162.9)	$	(21.7)	$	(49.6)
Gain (loss) on fair value hedging relationships
Interest rate contracts:
Hedged items	3.0		—		—
Derivatives designated as hedging instruments	(3.0)		—		—
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from accumulated other comprehensive income into income	(4.2)		—		(0.1)
Foreign exchange contracts:
Amount of gain (loss) reclassified from accumulated other comprehensive income into income (1)	—		11.7		—
Gain (loss) on non-designated derivative contracts	—		2.2		—

_________

(1) These amounts are substantially offset by foreign currency remeasurement adjustments on related hedged instruments, also recognized in other income (expense).

Other financial instruments

The following table shows the carrying amounts and fair values of our other financial instruments as of December 31 (in millions):


	2020		2020		2019		2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Liabilities
Recourse fixed rate debt	$	5,056.3	$	5,696.9	$	4,389.3	$	4,644.6
Recourse floating rate debt	299.9		300.4		417.5		419.0

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details