Asset Impairments and Assets Held for Sale (Notes)

12 Months Ended

Dec. 31, 2023

Asset Impairments and Assets Held for Sale

In 2022, we made the decision to exit Rail Russia, which was historically reported within the Rail International segment. 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, we recorded impairment losses totaling $14.6 million in 2022, which are presented in net gain on asset dispositions in the statements of comprehensive income. The impairment charges included $1.2 million for the anticipated liquidation of the cumulative translation adjustment. In 2023, we sold Rail Russia and recorded a gain of $0.3 million, which is presented in net gain on asset dispositions in the statements of comprehensive income.

In 2022, we made the decision to sell our five 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, we recorded impairment losses of $34.3 million in 2022. We sold two of the vessels in 2022. In 2023, we sold the remaining three vessels and recorded net losses of $4.0 million, which is presented in net gain on asset dispositions in the statements of comprehensive income.

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


	2023		2022		2021
Attributable to Consolidated Assets
Rail North America	$	—	$	—	$	2.4
Rail International	0.3		14.6		—
Portfolio Management	1.2		34.3		—

Total	$	1.5	$	48.9	$	2.4

Impairment losses at Rail International were due to declines in value of railcars from functional obsolescence in 2023 and to the decision to sell Rail Russia in 2022, as noted above. Impairment losses at Portfolio Management in 2023 and 2022 were due to the decision to sell the Specialized Gas Vessels, as noted above. At Rail North America, impairment losses in 2021 were attributable to locomotives with declines in value due to 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):


	2023		2022
Rail North America	$	0.8	$	1.2
Rail International	—		13.7
Portfolio Management	—		25.1
Total	$	0.8	$	40.0

All assets held for sale at December 31, 2023 are expected to be sold within one year and are included in Other Assets on the balance sheet.