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Financial Data of Business Segments
 9 Months Ended
Sep. 30, 2021
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.

In the first quarter of 2021, GATX began investing directly in aircraft spare engines through its new entity, GEL. During the first quarter of 2021, GEL acquired 14 aircraft spare engines for approximately $352 million, including 4 engines for $120 million from the RRPF affiliates. Financial results for this business are reported in the Portfolio Management segment.

On December 29, 2020, GATX acquired Trifleet Leasing Holding B.V. ("Trifleet"), one of the largest tank container lessors in the world. Financial results for this business are reported in the Other segment. See "Note 3. Business Combinations" for additional information.

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" 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, and GEL, our direct ownership of aircraft spare engines that we lease, as well as five liquefied gas carrying vessels (the "Specialized Gas Vessels") and assorted other marine assets.

Other includes Trifleet operations, as well as selling, general and administrative expenses, income taxes, and certain other amounts not allocated to the segments.

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.
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, 2021
Revenues
Lease revenue
$200.4 $68.8 $8.2 $6.5 $283.9 
Marine operating revenue
— — 5.0 — 5.0 
Other revenue
19.4 2.7 0.1 2.4 24.6 
Total Revenues
219.8 71.5 13.3 8.9 313.5 
Expenses
Maintenance expense
58.9 14.0 — 1.3 74.2 
Marine operating expense
— — 3.7 — 3.7 
Depreciation expense
64.8 18.5 4.9 2.9 91.1 
Operating lease expense
9.0 — — — 9.0 
Other operating expense
6.6 1.8 0.6 0.7 9.7 
Total Expenses
139.3 34.3 9.2 4.9 187.7 
Other Income (Expense)
Net gain on asset dispositions
20.2 0.9 0.6 0.2 21.9 
Interest expense, net
(32.9)(10.9)(4.5)(1.5)(49.8)
Other (expense) income
(1.1)(0.2)2.0 (1.0)(0.3)
Share of affiliates' pre-tax (loss) income
(0.2)— 4.0 — 3.8 
Segment profit
$66.5 $27.0 $6.2 $1.7 $101.4 
Less:
Selling, general and administrative expense
45.9 
Income taxes (includes $1.0 related to affiliates' earnings)
15.4 
Net income
$40.1 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$14.4 $0.3 $— $0.2 $14.9 
Residual sharing income
0.2 — 0.6 — 0.8 
Non-remarketing net gains (1)
5.6 0.6 — — 6.2 
$20.2 $0.9 $0.6 $0.2 $21.9 
Capital Expenditures
Portfolio investments and capital additions
$178.9 $40.9 $— $10.0 $229.8 
Selected Balance Sheet Data at September 30, 2021
Investments in affiliated companies
$0.2 $— $564.2 $— $564.4 
Identifiable assets
$6,016.0 $1,732.8 $1,030.1 $807.4 $9,586.3 
__________
(1) Includes net gains (losses) from scrapping of railcars.


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 December 31, 2020
Investments in affiliated companies
$— $— $584.7 $— $584.7 
Identifiable assets
$5,944.4 $1,745.8 $706.1 $541.3 $8,937.6 
__________
(1) Includes net gains (losses) from scrapping of railcars.


Rail
North America
Rail International
Portfolio Management		OtherGATX Consolidated
Nine Months Ended September 30, 2021
Revenues
Lease revenue
$611.4 $204.7 $19.8 $16.2 $852.1 
Marine operating revenue
— — 13.7 — 13.7 
Other revenue
56.4 7.9 0.5 5.8 70.6 
Total Revenues
667.8 212.6 34.0 22.0 936.4 
Expenses
Maintenance expense
178.8 43.6 — 2.7 225.1 
Marine operating expense
— — 13.8 — 13.8 
Depreciation expense
195.7 55.2 12.6 7.7 271.2 
Operating lease expense
30.1 — — — 30.1 
Other operating expense
22.6 5.5 1.2 2.0 31.3 
Total Expenses
427.2 104.3 27.6 12.4 571.5 
Other Income (Expense)
Net gain on asset dispositions
74.8 2.0 1.7 0.6 79.1 
Interest expense, net
(102.5)(34.2)(12.0)(4.7)(153.4)
Other (expense) income
(2.9)— 2.0 (8.8)(9.7)
Share of affiliates' pre-tax (loss) income
(0.2)— 26.4 — 26.2 
Segment profit (loss)
$209.8 $76.1 $24.5 $(3.3)$307.1 
Less:
Selling, general and administrative expense
140.8 
Income taxes (includes $47.8 related to affiliates' earnings)
84.2 
Net income
$82.1 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$62.2 $0.7 $— $0.5 $63.4 
Residual sharing income
0.8 — 1.7 — 2.5 
Non-remarketing net (loss) gains (1)
11.8 1.3 — 0.1 13.2 
$74.8 $2.0 $1.7 $0.6 $79.1 
Capital Expenditures
Portfolio investments and capital additions
$394.4 $126.1 $353.0 $19.7 $893.2 
__________
(1) Includes net gains (losses) from scrapping of railcars.