Leases

6 Months Ended

Jun. 30, 2024

GATX as Lessor

We lease railcars, locomotives, aircraft spare engines, and tank containers under full-service and net operating leases. We price full-service leases as an integrated service that includes amounts related to maintenance, insurance, and ad valorem taxes. In accordance with applicable guidance, we do not separate lease and non-lease components when reporting revenue for our full-service operating leases. In some cases, we lease railcars and tank containers that, at commencement, are classified as finance leases. For certain operating leases, revenue is based on equipment usage and is recognized when earned. Typically, our leases do not provide customers with renewal options or options to purchase the asset. Our lease agreements do not generally have residual value guarantees. We collect reimbursements from customers for damage to our railcars, as well as additional rental payments for usage above specified levels, as provided in the lease agreements.

The following table shows the components of our lease revenue (in millions):


	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Operating lease revenue:
Fixed lease revenue	$	311.1	$	281.7	$	616.2	$	558.5
Variable lease revenue	25.1		23.9		49.7		46.4
Total operating lease revenue	$	336.2	$	305.6	$	665.9	$	604.9
Finance lease revenue	3.4		3.0		7.0		5.7
Total lease revenue	$	339.6	$	308.6	$	672.9	$	610.6

In accordance with the terms of our leases with customers, we may earn additional revenue, primarily for customer liability repairs. This additional revenue is reported in other revenue in the statements of comprehensive income and was $28.1 million and $56.8 million for the three and six months ended June 30, 2024 and $21.8 million and $45.7 million for the three and six months ended June 30, 2023.