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Investments in Affiliated Companies
 12 Months Ended
Dec. 31, 2025
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):
Segment20252024Percentage
Ownership
Rolls-Royce & Partners Finance (1)Engine Leasing$732.3 $663.1 50.0 %
RailPulse LLCRail North America— 0.2 10.0 %
Investments in affiliated companies$732.3 $663.3 
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(1) Combined investment balances of a group of 50.0% 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):
202520242023
Rail North America$(0.2)$— $(0.6)
Engine Leasing157.2 108.3 98.7 
Share of affiliates' pre-tax earnings157.0 108.3 98.1 
Income taxes(39.7)(25.5)(25.7)
Share of affiliates' earnings, net of taxes$117.3 $82.8 $72.4 
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
202520242023
Engine Leasing$50.0 $50.0 $25.0 
Total$50.0 $50.0 $25.0 

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):
202520242023
Revenues$643.4 $514.0 $487.2 
Net gains on sales of assets134.6 75.2 91.7 
Net income238.4 164.0 150.6 

The following table shows aggregated summarized balance sheet data for our affiliated companies as of December 31 (in millions):
20252024
Current assets$521.5 $610.5 
Noncurrent assets5,897.6 4,709.1 
Total assets$6,419.1 $5,319.6 
Current liabilities$883.4 $618.4 
Noncurrent liabilities4,102.4 3,405.1 
Shareholders’ equity1,433.3 1,296.1 
Total liabilities and shareholders' equity$6,419.1 $5,319.6 

Summarized Financial Data for the RRPF Affiliates

Our affiliate investments include interests in each of the RRPF affiliates, a group of 50.0% 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 456 aircraft engines at December 31, 2025, of which 182 were on lease to Rolls-Royce. Aircraft engines are generally depreciated over a useful life of 18 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 $5.6 million in 2025, $4.1 million in 2024, and $2.7 million in 2023. Our share of affiliates' earnings (after-tax) from the RRPF affiliates was $117.5 million in 2025, $82.8 million in 2024, and $72.8 million in 2023. In 2025, financial results included $23.4 million ($17.5 million after-tax) of income from insurance recoveries related to aircraft spare engines.
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):
202520242023
Lease revenue from third parties$401.4 $268.1 $224.8 
Lease revenue from Rolls-Royce215.1 225.3 253.0 
Other revenue24.1 18.9 6.0 
Depreciation expense(224.4)(206.2)(223.7)
Interest expense(172.0)(127.3)(135.9)
Other expenses(64.4)(37.7)(19.3)
Other income, including net gains on sales of assets134.5 75.5 92.6 
Income before income taxes314.3 216.6 197.5 
Income taxes (1)(74.4)(49.4)(42.5)
Net income$239.9 $167.2 $155.0 
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(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):
  20252024
Current assets$519.3 $607.9 
Noncurrent assets, including operating assets, net of accumulated depreciation of $1,860.3 and $1,618.4 (1)
5,897.6 4,709.1 
Total assets$6,416.9 $5,317.0 
Accounts payable and accrued expenses$235.3 $239.6 
Debt:
   Current645.1 378.2 
   Noncurrent, net of adjustments for hedges3,189.4 2,673.7 
Other liabilities913.0 731.3 
Shareholders’ equity1,434.1 1,294.2 
Total liabilities and shareholders' equity$6,416.9 $5,317.0 
_______
(1) $4,620.4 million of operating assets were pledged as collateral for long-term debt obligations at December 31, 2025.

    The following table shows contractual future lease receipts from noncancelable leases of the RRPF affiliates as of December 31, 2025 (in millions):
Rolls-RoyceThird PartiesTotal
2026$180.4 $408.1 $588.5 
2027102.8 372.5 475.3 
202868.9 326.1 395.0 
202956.5 281.9 338.4 
203047.5 238.7 286.2 
Thereafter
73.4 861.3 934.7 
Total
$529.5 $2,488.6 $3,018.1 
The following table shows the scheduled principal payments of debt obligations of the RRPF affiliates as of December 31, 2025 (in millions):
2026$608.2 
2027477.1 
2028576.8 
2029159.8 
2030453.1 
Thereafter
924.0 
Total debt principal (1)
$3,199.0 
_______
(1) All debt obligations are nonrecourse to the shareholders.