Financial Data of Business Segments

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Financial Data of Business Segments

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.

Headquartered in Chicago, Illinois, GATX Corporation (“GATX” or the “Company”) 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. In 2012, the Company modified the composition of its reportable segments to reflect an increasing focus on international growth and related changes in its management structure. As a result, the Company now reports financial results through fourprimary business segments: Rail North America, Rail International, American Steamship Company (“ASC”) and Portfolio Management. In 2012, GATX disaggregated Rail North America from other international railcar leasing operations to better reflect GATX's increasing focus on international rail growth and recent changes to its management structure. Segment disclosures for all years are presented on this basis.

Rail North America is comprised of GATX's wholly-owned operations in the United States, Canada and Mexico, as well as two affiliate investments. Rail North America primarily provides railcars pursuant to full-service leases under which it maintains the railcars, pays ad valorem taxes and insurance and provides other ancillary services.

Rail International is comprised of GATX's wholly-owned European operations ("Rail Europe") and its newly established railcar leasing business in India ("Rail India"), as well as two affiliate investments. Rail Europe leases railcars, predominantly tank cars to customers throughout Europe pursuant to full-service leases under which it maintains the railcars and provides insurance and other ancillary services.

ASC operates the largest fleet of U.S. flagged vessels on the Great Lakes, providing waterborne transportation of dry bulk commodities such as iron ore, coal, limestone aggregates and metallurgical limestone.

Portfolio Management is an aggregation of a group of diversified owned assets and joint venture investments ("affiliates") and provides leasing, asset remarketing and asset management services. Portfolio Management selectively invests in long-lived, widely used assets with a focus on domestic marine and container related equipment and extends its market reach through affiliate 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, pre-tax earnings from affiliates and net gains on asset dispositions that are attributable to the segments as well as expenses that management believes are directly associated with the financing, maintenance and operation of the revenue earning assets. 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 North America, Rail International, ASC and Portfolio Management are set at5:1,2:1, 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, 2012, 2011 and 2010 (in millions):

	Rail North America			Rail International			ASC			Portfolio Management			Other			GATX Consolidated
2012 Profitability
Revenues
Lease revenue	$	713.9		$	161.2		$	4.3		$	37.6		$	—		$	917.0
Marine operating revenue	—			—			239.1			26.4			—			265.5
Other revenue	51.4			6.5			—			2.8			—			60.7
Total Revenues	765.3			167.7			243.4			66.8			—			1,243.2
Expenses
Maintenance expense	201.4			46.6			21.7			—			—			269.7
Marine operating expense	—			—			160.3			22.1			—			182.4
Depreciation	167.7			36.1			11.9			21.7			—			237.4
Operating lease expense	126.5			—			3.8			0.2			(0.3		)	130.2
Other operating expense	18.5			5.1			(0.3		)	0.9			—			24.2
Total Expenses	514.1			87.8			197.4			44.9			(0.3		)	843.9
Other Income (Expense)
Net gain on asset dispositions	58.6			1.7			—			19.2			—			79.5
Interest expense, net	(101.9		)	(24.5		)	(7.1		)	(27.7		)	(5.4		)	(166.6		)
Other (expense) income	(5.1		)	(6.1		)	(1.4		)	3.4			1.0			(8.2		)
Share of affiliates' earnings (pre-tax)	6.5			(18.3		)	—			33.4			—			21.6
Segment profit (loss)	$	209.3		$	32.7		$	37.5		$	50.2		$	(4.1	)	325.6
Selling, general and administrative expense																160.2
Income taxes (including $2.0 million related to affiliates' earnings)																28.1
Net income																$	137.3
Selected Balance Sheet Data
Investments in affiliated companies	$	46.9		$	77.2		$	—		$	377.9		$	—		$	502.0
Identifiable assets	$	3,601.1		$	1,105.8		$	284.2		$	797.4		$	266.9		$	6,055.4
Capital Expenditures
Portfolio investments and capital additions	$	465.9		$	200.1		$	12.6		$	83.5		$	7.9		$	770.0

	Rail North America			Rail International			ASC			Portfolio Management			Other			GATX Consolidated
2011 Profitability
Revenues
Lease revenue	$	690.9		$	160.5		$	4.2		$	44.5		$	—		$	900.1
Marine operating revenue	—			—			212.2			17.8			—			230.0
Other revenue	51.5			7.8			—			2.0			—			61.3
Total Revenues	742.4			168.3			216.4			64.3			—			1,191.4
Expenses
Maintenance expense	206.1			52.1			19.4			—			—			277.6
Marine operating expense	—			—			151.7			13.9			—			165.6
Depreciation	162.5			33.6			11.3			19.1			—			226.5
Operating lease expense	130.9			—			—			1.4			(0.3		)	132.0
Other operating expense	18.8			4.2			—			4.3			0.5			27.8
Total Expenses	518.3			89.9			182.4			38.7			0.2			829.5
Other Income (Expense)
Net gain on asset dispositions	52.1			—			1.1			12.6			—			65.8
Interest expense, net	(101.7		)	(25.4		)	(7.7		)	(29.6		)	(4.5		)	(168.9		)
Other (expense) income	(5.7		)	7.2			(0.1		)	2.8			(0.1		)	4.1
Share of affiliates' earnings (pre-tax)	3.9			0.5			—			36.2			—			40.6
Segment profit (loss)	$	172.7		$	60.7		$	27.3		$	47.6		$	(4.8	)	303.5
Selling, general and administrative expense																155.3
Income taxes (including $8.2 million related to affiliates' earnings)																37.4
Net income																$	110.8
Selected Balance Sheet Data
Investments in affiliated companies	$	54.0		$	88.2		$	—		$	371.6		$	—		$	513.8
Identifiable assets	$	3,540.2		$	903.2		$	276.1		$	844.0		$	294.0		$	5,857.5
Capital Expenditures
Portfolio investments and capital additions	$	280.5		$	140.8		$	17.4		$	172.0		$	3.9		$	614.6

	Rail North America			Rail International			ASC			Portfolio Management			Other			GATX Consolidated
2010 Profitability
Revenues
Lease revenue	$	671.5		$	141.8		$	4.1		$	43.0		$	—		$	860.4
Marine operating revenue	—			—			185.3			13.1			—			198.4
Other revenue	48.5			5.7			—			1.0			—			55.2
Total Revenues	720.0			147.5			189.4			57.1			—			1,114.0
Expenses
Maintenance expense	205.5			49.8			12.9			—			—			268.2
Marine operating expense	—			—			129.1			8.9			—			138.0
Depreciation	158.6			30.2			10.7			17.5			—			217.0
Operating lease expense	139.1			—			—			1.4			(0.3		)	140.2
Other operating expense	24.2			5.1			—			1.3			0.3			30.9
Total Expenses	527.4			85.1			152.7			29.1			—			794.3
Other Income (Expense)
Net gain on asset dispositions	29.6			(0.6		)	—			12.1			—			41.1
Interest expense, net	(103.8		)	(23.3		)	(8.3		)	(28.2		)	(3.5		)	(167.1		)
Other (expense) income	(5.5		)	(2.0		)	0.2			(0.1		)	7.8			0.4
Share of affiliates' earnings (pre-tax)	7.2			(6.0		)	—			36.9			—			38.1
Segment profit	$	120.1		$	30.5		$	28.6		$	48.7		$	4.3		232.2
Selling, general and administrative expense																134.8
Income taxes (including $9.6 million related to affiliates' earnings)																16.6
Net income																$	80.8
Selected Balance Sheet Data
Investments in affiliated companies	$	59.2		$	81.8		$	—		$	345.1		$	—		$	486.1
Identifiable assets	$	3,226.8		$	1,065.6		$	271.3		$	741.0		$	137.7		$	5,442.4
Capital Expenditures
Portfolio investments and capital additions	$	367.1		$	107.5		$	9.0		$	97.4		$	4.1		$	585.1