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Financial Data of Business Segments
 9 Months Ended
Sep. 30, 2023
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 Trifleet Leasing are reported in the Other 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 ("Rail India"), and until January 31, 2023, Rail Russia. GRE primarily leases railcars to customers throughout Europe pursuant to full-service leases under which it maintains the railcars and provides value-added services according to customer requirements. In the first quarter of 2023, we completed the sale of Rail Russia. See "Note 6. Asset Impairments and Assets Held for Sale" for further information.

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 are leased or employed in engine capacity agreements, and the Specialized Gas Vessels. In the third quarter of 2023, GEL acquired one aircraft spare engine for approximately $28 million. In the second quarter of 2023, GEL acquired nine aircraft spare engines for approximately $239 million, and GATX sold one of the Specialized Gas Vessels. GATX had previously sold one of the Specialized Gas Vessels in the first quarter of 2023 and two Specialized Gas Vessels in the third quarter of 2022. The one remaining vessel continues to be classified as held for sale as of September 30, 2023. See "Note 6. Asset Impairments and Assets Held for Sale" for further information.

Other includes Trifleet Leasing operations, 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 September 30, 2023
Revenues
Lease revenue
$225.2 $75.6 $8.1 $8.3 $317.2 
Marine operating revenue
— — 0.6 — 0.6 
Other revenue
22.7 3.6 13.7 2.3 42.3 
Total Revenues
247.9 79.2 22.4 10.6 360.1 
Expenses
Maintenance expense
69.4 17.1 — 1.4 87.9 
Marine operating expense
— — 1.0 — 1.0 
Depreciation expense
66.9 17.5 8.4 3.4 96.2 
Operating lease expense
9.0 — — — 9.0 
Other operating expense
6.5 2.7 2.1 0.7 12.0 
Total Expenses
151.8 37.3 11.5 5.5 206.1 
Other Income (Expense)
Net gain on asset dispositions
15.5 0.9 0.2 0.3 16.9 
Interest (expense) income, net
(46.6)(14.5)(8.7)1.7 (68.1)
Other income (expense)
1.2 (0.1)(0.2)0.9 1.8 
Share of affiliates' pre-tax (losses) earnings
(0.1)— 18.0 — 17.9 
Segment profit
$66.1 $28.2 $20.2 $8.0 $122.5 
Less:
Selling, general and administrative expense
51.0 
Income taxes (includes $4.5 related to affiliates' earnings)
19.0 
Net income
$52.5 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$13.0 $— $— $0.1 $13.1 
Residual sharing income
0.1 — 0.2 — 0.3 
Non-remarketing net gains (1)
2.4 0.9 — 0.2 3.5 
$15.5 $0.9 $0.2 $0.3 $16.9 
Capital Expenditures
Portfolio investments and capital additions
$197.0 $129.6 $28.3 $9.0 $363.9 
Selected Balance Sheet Data at September 30, 2023
Investments in affiliated companies
$0.4 $— $626.5 $— $626.9 
Identifiable assets
$6,778.4 $1,979.2 $1,369.4 $520.5 $10,647.5 
_________
(1) Includes net gains (losses) from scrapping of railcars.


Rail North America
Rail International
Portfolio Management		OtherGATX Consolidated
Three Months Ended September 30, 2022
Revenues
Lease revenue
$211.3 $65.3 $8.3 $7.5 $292.4 
Marine operating revenue
— — 4.8 — 4.8 
Other revenue
20.0 2.3 — 1.5 23.8 
Total Revenues
231.3 67.6 13.1 9.0 321.0 
Expenses
Maintenance expense
62.4 12.8 — 0.7 75.9 
Marine operating expense
— — 3.6 — 3.6 
Depreciation expense
65.3 16.8 3.7 2.9 88.7 
Operating lease expense
9.0 — — — 9.0 
Other operating expense
6.0 1.5 0.6 0.6 8.7 
Total Expenses
142.7 31.1 7.9 4.2 185.9 
Other Income (Expense)
Net gain (loss) on asset dispositions
13.3 (10.3)0.8 0.1 3.9 
Interest expense, net
(36.5)(11.2)(4.6)(1.3)(53.6)
Other (expense) income
(1.4)(0.5)0.1 (0.7)(2.5)
Share of affiliates' pre-tax earnings
0.3 — 9.7 — 10.0 
Segment profit
$64.3 $14.5 $11.2 $2.9 $92.9 
Less:
Selling, general and administrative expense
47.6 
Income taxes (includes $2.5 related to affiliates' earnings)
16.2 
Net income$29.1 
Net Gain (Loss) on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$8.8 $0.3 $— $— $9.1 
Residual sharing income
0.2 — 0.8 — 1.0 
Non-remarketing net gains (1)
4.3 0.2 — 0.1 4.6 
Asset impairments
— (10.8)— — (10.8)
$13.3 $(10.3)$0.8 $0.1 $3.9 
Capital Expenditures
Portfolio investments and capital additions
$142.5 $50.1 $— $10.8 $203.4 
Selected Balance Sheet Data at December 31, 2022
Investments in affiliated companies
$0.8 $— $574.3 $— $575.1 
Identifiable assets
$6,445.7 $1,774.4 $1,106.6 $745.3 $10,072.0 
_________
(1) Includes net gains (losses) from scrapping of railcars


Rail North America
Rail International
Portfolio Management		OtherGATX Consolidated
Nine Months Ended September 30, 2023
Revenues
Lease revenue
$659.2 $219.1 $24.5 $25.0 $927.8 
Marine operating revenue
— — 6.1 — 6.1 
Other revenue
68.0 9.6 24.6 6.1 108.3 
Total Revenues
727.2 228.7 55.2 31.1 1,042.2 
Expenses
Maintenance expense
203.1 47.6 — 3.4 254.1 
Marine operating expense
— — 5.4 — 5.4 
Depreciation expense
198.5 49.8 19.9 9.9 278.1 
Operating lease expense
27.0 — — — 27.0 
Other operating expense
20.2 7.2 4.4 2.2 34.0 
Total Expenses
448.8 104.6 29.7 15.5 598.6 
Other Income (Expense)
Net gain on asset dispositions
97.4 2.4 4.7 0.6 105.1 
Interest (expense) income, net
(133.4)(40.5)(20.9)4.0 (190.8)
Other (expense) income
(1.3)(7.0)(0.5)1.7 (7.1)
Share of affiliates' pre-tax (losses) earnings
(0.5)— 66.3 — 65.8 
Segment profit
$240.6 $79.0 $75.1 $21.9 $416.6 
Less:
Selling, general and administrative expense
153.4 
Income taxes (includes $17.7 related to affiliates' earnings)
70.0 
Net income
$193.2 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$88.4 $0.5 $5.5 $0.3 $94.7 
Residual sharing income
0.3 — 0.4 — 0.7 
Non-remarketing net gains (1)
8.7 1.9 — 0.3 10.9 
Asset impairments
— — (1.2)— (1.2)
$97.4 $2.4 $4.7 $0.6 $105.1 
Capital Expenditures
Portfolio investments and capital additions
$654.8 $288.0 $267.3 $27.4 $1,237.5 
_________
(1) Includes net gains (losses) from scrapping of railcars.


Rail North America
Rail International
Portfolio Management		OtherGATX Consolidated
Nine Months Ended September 30, 2022
Revenues
Lease revenue
$615.0 $199.4 $24.8 $21.4 $860.6 
Marine operating revenue
— — 16.2 — 16.2 
Other revenue
61.8 6.5 0.1 5.1 73.5 
Total Revenues
676.8 205.9 41.1 26.5 950.3 
Expenses
Maintenance expense
180.1 39.0 — 2.2 221.3 
Marine operating expense
— — 11.7 — 11.7 
Depreciation expense
193.7 52.0 13.6 8.9 268.2 
Operating lease expense
27.1 — — — 27.1 
Other operating expense
19.2 6.0 1.7 1.8 28.7 
Total Expenses
420.1 97.0 27.0 12.9 557.0 
Other Income (Expense)
Net gain (loss) on asset dispositions
90.0 (7.9)(29.1)0.4 53.4 
Interest expense, net
(105.8)(33.5)(13.9)(3.5)(156.7)
Other (expense) income
(3.4)0.2 — (12.6)(15.8)
Share of affiliates' pre-tax earnings
0.3 — 20.5 — 20.8 
Segment profit (loss)
$237.8 $67.7 $(8.4)$(2.1)$295.0 
Less:
Selling, general and administrative expense
142.7 
Income taxes (includes $6.0 related to affiliates' earnings)
44.8 
Net income$107.5 
Net Gain (Loss) on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$74.4 $1.0 $— $0.2 $75.6 
Residual sharing income
2.3 — 2.4 — 4.7 
Non-remarketing net gains (1)
13.3 1.9 — 0.2 15.4 
Asset impairments
— (10.8)(31.5)— (42.3)
$90.0 $(7.9)$(29.1)$0.4 $53.4 
Capital Expenditures
Portfolio investments and capital additions
$676.6 $177.8 $— $33.5 $887.9 
_________
(1) Includes net gains (losses) from scrapping of railcars.