Asset Impairments and Assets Held for Sale

6 Months Ended

Jun. 30, 2022

Asset Impairments and Assets Held for Sale

During the second quarter of 2022, GATX management made the decision to sell the Specialized Gas Vessels within the Portfolio Management segment. As such, the Specialized Gas Vessels have been classified as held for sale and adjusted to the lower of their respective carrying amounts or fair value less costs to dispose. As a result, an aggregate impairment loss of $31.5 million was recognized in the current quarter. These impairments were driven by our decision to sell these vessels and resulted from the associated change in our expected use and holding periods for these assets. The impairment losses were included in net (loss) gain on asset dispositions. As of June 30, 2022 the fair value of the impaired assets was $70.3 million. We based the fair value of these assets on our estimate of the expected sales proceeds.

The following table summarizes assets held for sale by segment (in millions):


	June 30 2022		December 31 2021
Rail North America	$	3.5	$	3.8
Portfolio Management	70.3		—
Total assets held for sale	$	73.8	$	3.8

All assets held for sale at June 30, 2022 are expected to be sold within one year and are included in Other Assets on the balance sheet.