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Financial Data of Business Segments
 3 Months Ended
Mar. 31, 2022
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. Financial results for our tank container leasing business ("Trifleet leasing") are reported in the Other segment.

In the first quarter of 2021, GATX invested directly in aircraft spare engines through its new entity, GEL. 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.

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, 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 our Trifleet leasing business, 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 March 31, 2022
Revenues
Lease revenue
$200.7 $67.6 $8.3 $6.7 $283.3 
Marine operating revenue
— — 6.2 — 6.2 
Other revenue
23.0 2.3 — 1.8 27.1 
Total Revenues
223.7 69.9 14.5 8.5 316.6 
Expenses
Maintenance expense
59.9 14.0 — 0.7 74.6 
Marine operating expense
— — 4.2 — 4.2 
Depreciation expense
63.5 18.0 5.0 3.0 89.5 
Operating lease expense
9.1 — — — 9.1 
Other operating expense
7.3 2.4 0.5 0.5 10.7 
Total Expenses
139.8 34.4 9.7 4.2 188.1 
Other Income (Expense)
Net gain on asset dispositions
71.6 1.0 0.9 0.2 73.7 
Interest expense, net
(34.4)(11.2)(4.7)(0.9)(51.2)
Other expense
(0.7)(0.4)(0.1)(0.8)(2.0)
Share of affiliates' pre-tax losses
— — (4.8)— (4.8)
Segment profit (loss)
$120.4 $24.9 $(3.9)$2.8 $144.2 
Less:
Selling, general and administrative expense
47.2 
Income taxes (includes $1.2 of income tax benefit related to affiliates' losses)
21.2 
Net income
$75.8 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$64.4 $0.4 $— $0.1 $64.9 
Residual sharing income
2.0 — 0.9 — 2.9 
Non-remarketing net gains (1)
5.2 0.6 — 0.1 5.9 
$71.6 $1.0 $0.9 $0.2 $73.7 
Capital Expenditures
Portfolio investments and capital additions
$280.4 $78.9 $— $11.1 $370.4 
Selected Balance Sheet Data at March 31, 2022
Investments in affiliated companies
$0.3 $— $584.7 $— $585.0 
Identifiable assets
$6,228.4 $1,719.1 $1,040.1 $921.0 $9,908.6 
__________
(1) Includes net gains (losses) from scrapping of railcars and tank containers.


Rail
North America
Rail International
Portfolio Management		OtherGATX Consolidated
Three Months Ended March 31, 2021
Revenues
Lease revenue
$206.8 $66.9 $3.3 $3.6 $280.6 
Marine operating revenue
— — 3.6 — 3.6 
Other revenue
17.8 2.5 0.2 1.1 21.6 
Total Revenues
224.6 69.4 7.1 4.7 305.8 
Expenses
Maintenance expense
58.4 15.4 — 0.5 74.3 
Marine operating expense
— — 4.6 — 4.6 
Depreciation expense
65.7 18.3 2.7 1.9 88.6 
Operating lease expense
10.9 — — — 10.9 
Other operating expense
7.6 2.0 0.2 0.4 10.2 
Total Expenses
142.6 35.7 7.5 2.8 188.6 
Other Income (Expense)
Net gain on asset dispositions
21.5 0.3 0.6 0.1 22.5 
Interest expense, net
(37.0)(12.2)(3.1)(1.3)(53.6)
Other expense
(0.8)— — (0.5)(1.3)
Share of affiliates' pre-tax earnings
— — 9.0 — 9.0 
Segment profit
$65.7 $21.8 $6.1 $0.2 $93.8 
Less:
Selling, general and administrative expense
47.1 
Income taxes (includes $1.8 related to affiliates' earnings)
10.2 
Net income$36.5 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$16.3 $— $— $— $16.3 
Residual sharing income
0.1 — 0.6 — 0.7 
Non-remarketing net gains (1)
5.1 0.3 — 0.1 5.5 
$21.5 $0.3 $0.6 $0.1 $22.5 
Capital Expenditures
Portfolio investments and capital additions
$109.1 $44.4 $352.5 $3.5 $509.5 
Selected Balance Sheet Data at December 31, 2021
Investments in affiliated companies
$0.3 $— $588.1 $— $588.4 
Identifiable assets
$6,141.7 $1,729.9 $1,048.7 $621.4 $9,541.7 
__________
(1) Includes net gains (losses) from scrapping of railcars and tank containers