Asset Impairments and Assets Held for Sale (Notes)

12 Months Ended

Dec. 31, 2022

Asset Impairments and Assets Held for Sale

In 2022 we made the decision to exit Rail Russia, which is reported within the Rail International segment. This decision was due to the impacts of the Russia/Ukraine conflict on our business and the business risks associated with the geopolitical environment resulting from that conflict. The net assets of Rail Russia were classified as held for sale and adjusted to the lower of respective carrying amount or fair value less costs to dispose. As a result, an impairment loss of $14.6 million was recognized in 2022 and recorded in net gain on asset dispositions. The impairment charge included $1.2 million for the anticipated liquidation of the cumulative translation adjustment. We based the fair value of the net assets on our estimate of the expected sale proceeds. On January 31, 2023, we completed the sale of Rail Russia. See "Note 26. Subsequent Events".

In 2022, we made the decision to sell the Specialized Gas Vessels within the Portfolio Management segment. The Specialized Gas Vessels were 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, impairment losses of $34.3 million were recognized in 2022. 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 gain on asset dispositions. GATX sold two of the vessels in 2022. The fair value of the remaining impaired assets was $25.1 million as of December 31, 2022. We based the fair value of these assets on our estimate of the expected sales proceeds.

The following table summarizes the components of asset impairments for the years ended December 31 (in millions):


	2022		2021		2020
Attributable to Consolidated Assets
Rail North America	$	—	$	2.4	$	0.3
Rail International	14.6		—		—
Portfolio Management	34.3		—		—

Total	$	48.9	$	2.4	$	0.3

Impairment losses at Rail International and Portfolio Management in 2022 were due to decisions to sell Rail Russia and the Specialized Gas Vessels, as noted above. At Rail North America, impairment losses were primarily attributable to railcars and locomotives with declines in value due to excessive damage or functional obsolescence.

In the consolidated statements of comprehensive income, impairment losses related to consolidated assets were included in net gain on asset dispositions.

The following table summarizes assets held for sale by business segment as of December 31 (in millions):


	2022		2021
Rail North America	$	1.2	$	3.8
Rail International	13.7		—
Portfolio Management	25.1		—
Total assets held for sale	$	40.0	$	3.8

All assets held for sale at December 31, 2022 are expected to be sold within one year and are included in Other Assets on the balance sheet.