Financial Data of Business Segments

12 Months Ended

Dec. 31, 2011

Financial Data of Business Segments [Abstract]

Financial Data of Business Segments

NOTE 23.    Financial Data of Business Segments

The financial data presented below depicts the profitability, financial position and capital expenditures of each of GATX’s business segments.

GATX leases, operates, manages and remarkets long-lived, widely used assets primarily in the rail and marine markets. GATX also invests in joint ventures that complement existing business activities. Headquartered in Chicago, Illinois, GATX has three financial reporting segments: Rail, American Steamship Company (“ASC”) and Portfolio Management. In 2011, GATX changed the name of its former Specialty segment to Portfolio Management.

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.

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.

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

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.

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, ASC and Portfolio Management are set at 4:1, 1.5:1 and 3:1, 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 present certain segment data for the years ended December 31, 2011, 2010 and 2009 (in millions):

	Rail		ASC		Portfolio Management		Other			GATX Consolidated
2011 Profitability
Revenues
Lease income	$	851.3	$	4.2	$	62.3	$	—		$	917.8
Marine operating revenue		––		212.2		––		—			212.2
Asset remarketing income		28.1		––		16.5		—			44.6
Other income		86.6		1.1		4.5		1.1			93.3
Total revenues		966.0		217.5		83.3		1.1			1,267.9
Share of affiliates’ earnings		4.4		—		36.2		—			40.6
Total gross income		970.4		217.5		119.5		1.1			1,308.5
Depreciation		196.1		11.3		19.1		—			226.5
Interest expense, net		127.1		7.7		29.6		4.5			168.9
Operating lease expense		130.9		—		1.4		(0.3	)		132.0
Total ownership costs		454.1		19.0		50.1		4.2			527.4
Other costs and expenses		282.9		171.2		21.8		1.7			477.6
Segment profit (loss)	$	233.4	$	27.3	$	47.6	$	(4.8	)		303.5
SG&A											155.3
Income before income taxes											148.2
Income taxes											37.4
Net income										$	110.8
Selected Balance Sheet Data
Investments in affiliated companies	$	142.2	$	—	$	371.6	$	—		$	513.8
Identifiable assets	$	4,443.4	$	276.1	$	844.0	$	294.0		$	5,857.5
Capital Expenditures
Portfolio investments and capital additions	$	421.3	$	17.4	$	172.0	$	3.9		$	614.6

	Rail		ASC		Portfolio Management		Other			GATX Consolidated
2010 Profitability
Revenues
Lease income	$	813.3	$	4.1	$	56.1	$	—		$	873.5
Marine operating revenue		––		185.3		––		—			185.3
Asset remarketing income		17.4		––		14.0		—			31.4
Other income		72.3		0.2		1.0		3.1			76.6
Total revenues		903.0		189.6		71.1		3.1			1,166.8
Share of affiliates’ earnings		1.2		—		36.9		—			38.1
Total gross income		904.2		189.6		108.0		3.1			1,204.9
Depreciation		188.8		10.7		17.5		—			217.0
Interest expense, net		127.1		8.3		28.2		3.5			167.1
Operating lease expense		139.1		—		1.4		(0.3	)		140.2
Total ownership costs		455.0		19.0		47.1		3.2			524.3
Other costs and expenses		298.6		142.0		12.2		(4.4	)		448.4
Segment profit	$	150.6	$	28.6	$	48.7	$	4.3			232.2
SG&A											134.8
Income before income taxes											97.4
Income taxes											16.6
Net income										$	80.8
Selected Balance Sheet Data
Investments in affiliated companies	$	141.0	$	––	$	345.1	$	—		$	486.1
Identifiable assets	$	4,292.4	$	271.3	$	741.0	$	137.7		$	5,442.4
Capital Expenditures
Portfolio investments and capital additions	$	474.6	$	9.0	$	97.4	$	4.1		$	585.1

	Rail			ASC		Portfolio Management		Other			GATX Consolidated
2009 Profitability
Revenues
Lease income	$	844.5		$	4.1	$	56.5	$	—		$	905.1
Marine operating revenue		––			128.4		––		—			128.4
Asset remarketing income		14.0			––		15.8		—			29.8
Other income		57.9			0.2		2.4		1.1			61.6
Total revenues		916.4			132.7		74.7		1.1			1,124.9
Share of affiliates’ earnings		(10.1	)		––		39.1		—			29.0
Total gross income		906.3			132.7		113.8		1.1			1,153.9
Depreciation		189.1			10.0		18.6		—			217.7
Interest expense, net		128.7			9.0		26.8		3.0			167.5
Operating lease expense		135.5			––		1.4		(0.3	)		136.6
Total ownership costs		453.3			19.0		46.8		2.7			521.8
Other costs and expenses		283.9			97.6		15.4		(0.5	)		396.4
Segment profit (loss)	$	169.1		$	16.1	$	51.6	$	(1.1	)		235.7
SG&A												127.8
Income before income taxes												107.9
Income taxes												26.5
Net income											$	81.4
Selected Balance Sheet Data
Investments in affiliated companies	$	120.9		$	––	$	331.3	$	—		$	452.2
Identifiable assets	$	4,157.7		$	269.2	$	672.9	$	106.6		$	5,206.4
Capital Expenditures
Portfolio investments and capital additions	$	345.3		$	7.2	$	119.5	$	8.4		$	480.4