Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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):


	2021		2020
Deferred Tax Liabilities
Book/tax basis difference due to depreciation	$	1,093.5	$	1,017.8
Right-of-use assets	68.3		93.8
Investments in affiliated companies	27.5		26.1
Lease accounting	29.1		33.4
Intangible amortization	1.9		—
Other	5.4		2.8
Total deferred tax liabilities	$	1,225.7	$	1,173.9
Deferred Tax Assets
Lease liability	$	72.2	$	95.9
Federal net operating loss	87.8		53.5

Foreign tax credit	0.8		0.8
Valuation allowance on foreign tax credit	(0.8)		(0.8)
State net operating loss	45.0		38.3
Valuation allowance on state net operating loss	(14.9)		(13.9)
Foreign net operating loss	1.6		2.1

Accruals not currently deductible for tax purposes	18.3		16.0
Allowance for losses	1.7		1.1
Pension and post-retirement benefits	9.8		16.4
Other	3.2		1.7
Total deferred tax assets	$	224.7	$	211.1
Net deferred tax liabilities	$	1,001.0	$	962.8

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):


	2021		2020		2019
Income before Income Taxes
Domestic	$	40.9	$	(2.0)	$	39.1
Foreign	154.2		127.3		106.1
Total	$	195.1	$	125.3	$	145.2

Consolidated federal income taxes

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


	2021		2020		2019
Income Tax Expense
Current
Domestic:
Federal	$	0.1	$	(3.4)	$	(11.3)
State and local	0.3		0.3		(1.2)
	$	0.4	$	(3.1)	$	(12.5)
Foreign	18.6		11.3		19.6
Total Current	$	19.0	$	8.2	$	7.1
Deferred
Domestic:
Federal	6.7		3.6		19.6
State and local	3.0		0.9		4.3
	$	9.7	$	4.5	$	23.9
Foreign	24.5		24.6		9.9
Total Deferred	$	34.2	$	29.1	$	33.8
Income taxes	$	53.2	$	37.3	$	40.9

Summary of reasons for difference between GATX's effective income tax rate and federal statutory income tax

The following table is a reconciliation between the federal statutory income tax rate and our effective income tax rate for the years ended December 31 (in millions):


	2021			2020			2019
Income taxes at federal statutory rate	$	41.0		$	26.3		$	30.5
Adjust for effect of:

Foreign earnings taxed at applicable statutory rates	10.2			9.8			9.8
Foreign deferred tax rate change impact	(0.3)			(0.7)			(2.8)

Nondeductible compensation	1.9			0.6			0.2
Share-based compensation	(3.5)			(1.2)			(1.4)
State income taxes	2.9			1.2			3.8

Other	1.0			1.3			0.8





Income taxes	$	53.2		$	37.3		$	40.9
Effective income tax rate	27.3		%	29.8		%	28.2		%