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Investments in Affiliated Companies
 12 Months Ended
Dec. 31, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Affiliated Companies Investments in Affiliated Companies
Investments in affiliated companies is composed of investments in domestic and foreign affiliates, and primarily include entities that lease aircraft spare engines.

The following table presents our investments in affiliated companies and our ownership percentage in those companies by segment as of December 31 (in millions):
Segment20242023Percentage
Ownership
Rolls-Royce & Partners Finance (1)Engine Leasing$663.1 $626.8 50.0 %
RailPulse LLCRail North America0.2 0.2 10.0 %
Investments in Affiliated Companies$663.3 $627.0 
__________
(1) Combined investment balances of a group of 50% owned domestic and foreign joint ventures with Rolls-Royce.

The following table shows our share of affiliates’ earnings (losses) by segment for the years ended December 31 (in millions):
202420232022
Rail North America$— $(0.6)$0.5 
Engine Leasing108.3 98.7 45.4 
Share of affiliates' pre-tax earnings108.3 98.1 45.9 
Income taxes(25.5)(25.7)(12.3)
Share of affiliates' earnings, net of taxes$82.8 $72.4 $33.6 
There were no cash investments in affiliates in any of the periods presented. The following table shows distributions received from affiliates, by segment, for the years ended December 31 (in millions):
Cash Distributions
202420232022
Engine Leasing$50.0 $25.0 $46.3 
Total$50.0 $25.0 $46.3 

Summarized Financial Data of Affiliates

The following table shows the aggregated operating results for the years ended December 31 for the affiliated companies we held at December 31 (in millions):
202420232022
Revenues$514.0 $487.2 $417.7 
Net gains on sales of assets75.2 91.7 22.9 
Net income164.0 150.6 73.9 

The following table shows aggregated summarized balance sheet data for our affiliated companies as of December 31 (in millions):
20242023
Current assets$610.5 $495.9 
Noncurrent assets4,709.1 4,108.3 
Total assets$5,319.6 $4,604.2 
Current liabilities$618.4 $351.5 
Noncurrent liabilities3,405.1 3,024.1 
Shareholders’ equity1,296.1 1,228.6 
Total liabilities and shareholders' equity$5,319.6 $4,604.2 

Summarized Financial Data for the RRPF Affiliates

Our affiliate investments include interests in each of the RRPF affiliates, a group of 50% owned domestic and foreign joint ventures with Rolls-Royce plc, a leading manufacturer of commercial aircraft jet engines. The RRPF affiliates are primarily engaged in two business activities: lease financing of aircraft spare engines to a diverse group of commercial aircraft operators worldwide and lease financing of aircraft spare engines to Rolls-Royce for use in its engine maintenance programs. In aggregate, the RRPF affiliates owned 427 aircraft engines at December 31, 2024, of which 198 were on lease to Rolls-Royce. Aircraft engines are generally depreciated over a useful life of 20 to 30 years to their estimated residual value. Lease terms vary but typically range from 5 to 12 years. Seconded Rolls-Royce employees act as manager for each of the RRPF affiliates and also perform substantially all required maintenance activities. In addition, the RRPF affiliates manage all of GEL's aircraft spare engines, for which we paid them a fee of $4.1 million in 2024, $2.7 million in 2023, and $1.0 million in 2022. Our share of affiliates' earnings (after-tax) from the RRPF affiliates was $82.8 million in 2024, $72.8 million in 2023, and $33.2 million in 2022. In 2022, financial results included $11.5 million (after-tax) of impairment losses related to aircraft spare engines in Russia that RRPF does not expect to recover.
We derived the following financial information from the combined financial statements of the RRPF affiliates.

The following table shows condensed income statements of the RRPF affiliates for the years ending December 31 (in millions):
202420232022
Lease revenue from third parties$268.1 $224.8 $192.8 
Lease revenue from Rolls-Royce225.3 253.0 222.8 
Other revenue18.9 6.0 — 
Depreciation expense(206.2)(223.7)(230.6)
Interest expense(127.3)(135.9)(110.1)
Other expenses(37.7)(19.3)(7.0)
Other income, including net gains on sales of assets75.5 92.6 22.9 
Income before income taxes216.6 197.5 90.8 
Income taxes (1)(49.4)(42.5)(17.5)
Net income$167.2 $155.0 $73.3 
_________
(1)Represents income taxes directly attributable to the RRPF affiliates in the United Kingdom. Certain of the RRPF affiliates are disregarded entities for income tax purposes and, as a result, income taxes are incurred at the shareholder level.

The following table shows the condensed balance sheets of the RRPF affiliates as of December 31 (in millions):
  20242023
Current assets$607.9 $493.2 
Noncurrent assets, including operating assets, net of accumulated depreciation of $1,618.4 and $1,646.3 (1)
4,709.1 4,108.3 
Total assets$5,317.0 $4,601.5 
Accounts payable and accrued expenses$239.6 $170.0 
Debt:
   Current378.2 181.5 
   Noncurrent, net of adjustments for hedges2,673.7 2,451.1 
Other liabilities731.3 571.9 
Shareholders’ equity1,294.2 1,227.0 
Total liabilities and shareholders' equity$5,317.0 $4,601.5 
_________
(1) $3,954.7 million of operating assets were pledged as collateral for long-term debt obligations at December 31, 2024.

    The following table shows contractual future lease receipts from noncancelable leases of the RRPF affiliates as of December 31, 2024 (in millions):
Rolls-RoyceThird PartiesTotal
2025$188.0 $329.1 $517.1 
2026190.8 323.8 514.6 
2027134.8 264.2 399.0 
202861.3 234.4 295.7 
202949.0 218.1 267.1 
Thereafter
142.1 700.5 842.6 
Total
$766.0 $2,070.1 $2,836.1 
The following table shows the scheduled principal payments of debt obligations of the RRPF affiliates as of December 31, 2024 (in millions):
2025$366.0 
2026465.6 
2027427.9 
2028438.0 
202975.0 
Thereafter
1,024.0 
Total debt principal (1)
$2,796.5 
__________
(1) All debt obligations are nonrecourse to the shareholders.