Financial Data of Business Segments

6 Months Ended

Jun. 30, 2011

Financial Data of Business Segments [Abstract]

Financial Data of Business Segments

NOTE 13. Financial Data of Business Segments

          GATX leases, operates and manages long-lived, widely-used assets in the rail, marine and industrial equipment markets. GATX also invests in joint ventures that complement existing business activities. Headquartered in Chicago, Illinois, GATX has three financial reporting segments: Rail, Specialty and ASC.

          Rail is principally engaged in leasing tank and freight railcars, and locomotives. Rail provides railcars primarily pursuant to full-service leases, under which it maintains the railcars, pays ad valorem taxes and insurance, and provides other ancillary services. Rail also offers net leases for railcars and most of its locomotives, in which case the lessee is responsible for maintenance, insurance and taxes.

          Specialty provides leasing, asset remarketing and asset management services to the marine and industrial equipment markets. Specialty offers operating leases, direct finance leases and loans, and extends its market reach through joint venture investments.

          ASC owns and operates the largest fleet of U.S. flagged self-unloading vessels on the Great Lakes, providing waterborne transportation of dry bulk commodities for a range of industrial customers.

          Segment profit is an internal performance measure used by the Chief Executive Officer to assess the performance of each segment in a given period. Segment profit includes all revenues, including earnings from affiliates, attributable to the segments as well as ownership and operating costs that management believes are directly associated with the maintenance or operation of the revenue-earning assets. Operating costs include maintenance costs, marine operating costs and other operating costs such as litigation, asset impairment charges, provisions for losses, environmental costs and asset storage costs. Segment profit excludes selling, general and administrative expenses, income taxes and certain other amounts not allocated to the segments. These amounts are included in Other.

          GATX allocates debt balances and related interest expense to each segment based upon a pre-determined fixed recourse leverage level expressed as a ratio of recourse debt (including off balance sheet debt) to equity. The leverage levels for Rail, Specialty and ASC are set at 4:1, 3:1 and 1.5:1, respectively. Management believes that by utilizing this leverage and interest expense allocation methodology, each operating segment’s financial performance reflects appropriate risk-adjusted borrowing costs.

          The following tables depict the profitability, financial position and capital expenditures of each of GATX’s business segments for the three and six months ended June 30, 2011 and 2010 (in millions):

											GATX
	Rail			Specialty		ASC		Other			Consolidated
Three Months Ended June 30, 2011
Profitability
Revenues	$	237.7		$	17.6	$	58.8	$	0.5		$	314.6
Share of affiliates’ earnings		8.3			6.7		—		—			15.0
Total gross income		246.0			24.3		58.8		0.5			329.6
Ownership costs		114.5			12.2		5.9		1.1			133.7
Other costs and expenses		74.8			3.3		44.3		0.4			122.8
Segment profit (loss)	$	56.7		$	8.8	$	8.6	$	(1.0	)		73.1
SG&A												37.4
Income before income taxes											$	35.7
Capital Expenditures
Portfolio investments and capital additions	$	102.4		$	52.9	$	7.4	$	1.2		$	163.9
Selected Balance Sheet Data at June 30, 2011
Investments in affiliated companies	$	164.4		$	403.2	$	—	$	—		$	567.6
Identifiable assets	$	4,458.2		$	799.5	$	286.3	$	98.5		$	5,642.5
Three Months Ended June 30, 2010
Profitability
Revenues	$	217.8		$	16.3	$	53.4	$	0.7		$	288.2
Share of affiliates’ earnings		(4.7	)		11.3		—		—			6.6
Total gross income		213.1			27.6		53.4		0.7			294.8
Ownership costs		113.8			11.6		5.5		0.2			131.1
Other costs and expenses		69.9			1.5		38.8		(4.5	)		105.7
Segment profit	$	29.4		$	14.5	$	9.1	$	5.0			58.0
SG&A												32.8
Income before income taxes											$	25.2
Capital Expenditures
Portfolio investments and capital additions	$	40.4		$	13.5	$	5.4	$	1.6		$	60.9
Selected Balance Sheet Data at December 31, 2010
Investments in affiliated companies	$	141.0		$	345.1	$	—	$	—		$	486.1
Identifiable assets	$	4,292.4		$	741.0	$	271.3	$	137.7		$	5,442.4

										GATX
	Rail		Specialty		ASC		Other			Consolidated
Six Months Ended June 30, 2011
Profitability
Revenues	$	474.5	$	33.5	$	70.9	$	0.7		$	579.6
Share of affiliates’ earnings		15.4		16.7		—		—			32.1
Total gross income		489.9		50.2		70.9		0.7			611.7
Ownership costs		229.5		24.0		7.9		2.1			263.5
Other costs and expenses		152.1		6.7		53.6		0.5			212.9
Segment profit (loss)	$	108.3	$	19.5	$	9.4	$	(1.9	)		135.3
SG&A											73.8
Income before income taxes										$	61.5
Capital Expenditures
Portfolio investments and capital additions	$	156.3	$	89.3	$	12.6	$	1.9		$	260.1
Six Months Ended June 30, 2010
Profitability
Revenues	$	454.5	$	33.7	$	62.7	$	0.9		$	551.8
Share of affiliates’ earnings		3.9		21.0		—		—			24.9
Total gross income		458.4		54.7		62.7		0.9			576.7
Ownership costs		227.5		22.8		7.6		2.1			260.0
Other costs and expenses		152.2		5.3		45.6		(4.2	)		198.9
Segment profit	$	78.7	$	26.6	$	9.5	$	3.0			117.8
SG&A											66.3
Income before income taxes										$	51.5
Capital Expenditures
Portfolio investments and capital additions	$	88.5	$	33.1	$	7.0	$	2.5		$	131.1