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Investments in Affiliated Companies
 12 Months Ended
Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Affiliated Companies Investments in Affiliated Companies
Investments in affiliated companies is composed of investments in domestic and foreign affiliates, and primarily include entities that lease aircraft spare engines.

The following table presents our investments in affiliated companies and our ownership percentage in those companies by segment as of December 31 (in millions):
Segment20212020Percentage
Ownership
Rolls-Royce & Partners Finance (1)Portfolio Management$588.1 $584.7 50.0 %
RailPulse LLCRail North America0.3 — 17.0 %
Investments in Affiliated Companies$588.4 $584.7 
__________
(1) Combined investment balances of a group of 50% owned domestic and foreign joint ventures with Rolls-Royce plc (collectively, the "RRPF affiliates").
The following table shows our share of affiliates’ earnings by segment for the years ended December 31 (in millions):
202120202019
Rail North America$— $(0.1)$— 
Portfolio Management56.5 95.9 94.5 
Share of affiliates' pre-tax income56.5 95.8 94.5 
Income taxes (1)(55.3)(33.6)(18.0)
Share of affiliates' earnings, net of taxes$1.2 $62.2 $76.5 
__________
(1) Income taxes include deferred income tax adjustments of $39.7 million in 2021 due to an enacted corporate income tax rate increase in the United Kingdom and $12.3 million in 2020 due to the elimination of a previously announced corporate income tax rate reduction.

The following table shows our cash investments in and distributions and loan payments from our affiliates by segment for the years ended December 31 (in millions):
Cash InvestmentsCash Distributions
202120202019202120202019
Rail North America $0.4 $— $— $— $0.1 $— 
Portfolio Management— — — 0.1 0.6 27.6 
Total$0.4 $— $— $0.1 $0.7 $27.6 

Summarized Financial Data of Affiliates

The following table shows the aggregated operating results for the years ended December 31 for the affiliated companies we held at December 31 (in millions):
202120202019
Revenues$407.4 $491.0 $469.8 
Net gains on sales of assets79.5 115.7 86.4 
Net income5.0 146.1 161.4 

The following table shows aggregated summarized balance sheet data for our affiliated companies as of December 31 (in millions):
20212020
Current assets$574.3 $352.7 
Noncurrent assets4,389.4 4,766.9 
Total assets$4,963.7 $5,119.6 
Current liabilities$492.6 $311.0 
Noncurrent liabilities3,329.6 3,674.7 
Shareholders’ equity1,141.5 1,133.9 
Total liabilities and shareholders' equity$4,963.7 $5,119.6 
Summarized Financial Data for the RRPF Affiliates

Our affiliate investments include interests in each of the RRPF affiliates, a group of 50% owned domestic and foreign joint ventures with Rolls-Royce plc (or affiliates thereof, collectively “Rolls-Royce”), a leading manufacturer of commercial aircraft jet engines. The RRPF affiliates are primarily engaged in two business activities: lease financing of aircraft spare engines to a diverse group of commercial aircraft operators worldwide and lease financing of aircraft spare engines to Rolls-Royce for use in their engine maintenance programs. In aggregate, the RRPF affiliates owned 407 aircraft engines at December 31, 2021, of which 199 were on lease to Rolls-Royce. Aircraft engines are generally depreciated over a useful life of 20 to 25 years to an estimated residual value. Lease terms vary but typically range from 3 to 12 years. Rolls-Royce manages each of the RRPF affiliates and also performs substantially all required maintenance activities. Our share of affiliates' earnings (after-tax) from the RRPF affiliates was $1.2 million in 2021, $62.0 million in 2020, and $76.5 million in 2019. Financial results in 2021 and 2020 included $39.7 million of deferred tax expense due to an enacted corporate income tax rate increase in the United Kingdom in 2021 and $12.3 million of deferred tax expense due to the elimination of a previously announced corporate income tax rate reduction in the United Kingdom in 2020. In 2020, financial results included a transaction involving the refinancing and sale of a group of aircraft spare engines at the RRPF affiliates. In this transaction, the RRPF affiliates sold 21 aircraft spare engines for total proceeds of $233.0 million in 2020. GATX's 50% share of the resulting pre-tax net gains was $35.3 million.

We derived the following financial information from the combined financial statements of the RRPF affiliates.

The following table shows condensed income statements of the RRPF affiliates for the years ending December 31 (in millions):
202120202019
Lease revenue from third parties$195.5 $257.6 $213.3 
Lease revenue from Rolls-Royce211.9 233.4 256.7 
Depreciation expense(238.3)(248.7)(223.9)
Interest expense(96.7)(116.0)(126.4)
Other expenses(38.5)(50.3)(16.5)
Other income, including net gains on sales of assets79.5 115.7 86.4 
Income before income taxes113.4 191.7 189.6 
Income taxes (1)(107.4)(45.6)(27.9)
Net income$6.0 $146.1 $161.7 
_________
(1)Represents income taxes directly attributable to the RRPF affiliates in the United Kingdom. Certain of the RRPF affiliates are disregarded entities for income tax purposes and, as a result, income taxes are incurred at the shareholder level.

The following table shows the condensed balance sheets of the RRPF affiliates as of December 31 (in millions):
  20212020
Current assets$573.5 $352.7 
Noncurrent assets, including operating assets, net of accumulated depreciation of $1,415.5 and $1,283.6 (a)
4,389.4 4,766.9 
Total assets$4,962.9 $5,119.6 
Accounts payable and accrued expenses$130.9 $110.4 
Debt:
   Current 361.8 200.6 
   Noncurrent, net of adjustments for hedges2,845.1 3,243.6 
Other liabilities484.4 431.1 
Shareholders’ equity1,140.7 1,133.9 
Total liabilities and shareholders' equity$4,962.9 $5,119.6 
_________
(a) All operating assets were pledged as collateral for long-term debt obligations.
    The following table shows contractual future lease receipts from noncancelable leases of the RRPF affiliates as of December 31, 2021 (in millions):
Rolls-RoyceThird PartiesTotal
2022$214.3 $185.6 $399.9 
2023191.7 166.3 358.0 
2024183.9 153.1 337.0 
2025162.2 138.8 301.0 
2026137.5 125.3 262.8 
Thereafter
122.5 393.6 516.1 
Total
$1,012.1 $1,162.7 $2,174.8 

The following table shows the scheduled principal payments of debt obligations of the RRPF affiliates as of December 31, 2021 (in millions):
2022$364.2 
2023399.6 
2024164.1 
2025210.6 
2026465.6 
Thereafter
1,529.9 
Total debt principal (1)
$3,134.0 
__________
(1) All debt obligations are nonrecourse to the shareholders.