Description of Business

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business

Description of Business

As used herein, "GATX," "we," "us," "our," and similar terms refer to GATX Corporation and its subsidiaries, unless indicated otherwise.

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. Historically, we also reported financial results for American Steamship Company ("ASC") as a fourth segment.

In 2022, after a thorough strategic review, we made the decision to exit our rail business in Russia ("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. As a result, the net assets of Rail Russia have been classified as held for sale and an impairment loss of $14.6 million was recognized in 2022. 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 five liquefied gas-carrying vessels (the "Specialized Gas Vessels") within the Portfolio Management segment. As a result, the Specialized Gas Vessels were classified as held for sale and impairment losses of $34.3 million were recognized in 2022. GATX sold two of the Specialized Gas Vessels in 2022.

In 2021, we began investing directly in aircraft spare engines through our entity, GATX Engine Leasing Ltd. ("GEL"). In 2021, GEL acquired 14 aircraft spare engines for approximately $352 million, including four engines for $120 million from Rolls-Royce & Partners Finance joint ventures (collectively the "RRPF affiliates" or "RRPF"). In 2022, GEL acquired five aircraft spare engines for approximately $150 million. Financial results for this business are reported in the Portfolio Management segment.

On December 29, 2020, we acquired Trifleet Leasing Holding B.V. ("Trifleet"), one of the largest tank container lessors in the world. Financial results for this business are reported in the Other segment. See "Note 4. Business Combinations" for additional information.

On May 14, 2020, we completed the sale of our ASC business. As a result, ASC is reported as discontinued operations, and financial data for the ASC segment has been segregated and presented as discontinued operations for all periods presented. See "Note 25. Discontinued Operations" for additional information.