10-Q 1 gmt-20220331.htm 10-Q gmt-20220331
0000040211false2022Q1--12-3100000402112022-01-012022-03-310000040211exch:XNYS2022-01-012022-03-310000040211exch:XCHI2022-01-012022-03-3100000402112022-03-31xbrli:sharesiso4217:USD00000402112021-12-31iso4217:USDxbrli:shares00000402112021-01-012021-03-310000040211us-gaap:RetainedEarningsMember2022-01-012022-03-3100000402112020-12-3100000402112021-03-310000040211us-gaap:CommonStockMember2021-12-310000040211us-gaap:CommonStockMember2020-12-310000040211us-gaap:CommonStockMember2022-01-012022-03-310000040211us-gaap:CommonStockMember2021-01-012021-03-310000040211us-gaap:CommonStockMember2022-03-310000040211us-gaap:CommonStockMember2021-03-310000040211us-gaap:TreasuryStockMember2021-12-310000040211us-gaap:TreasuryStockMember2020-12-310000040211us-gaap:TreasuryStockMember2022-01-012022-03-310000040211us-gaap:TreasuryStockMember2021-01-012021-03-310000040211us-gaap:TreasuryStockMember2022-03-310000040211us-gaap:TreasuryStockMember2021-03-310000040211us-gaap:AdditionalPaidInCapitalMember2021-12-310000040211us-gaap:AdditionalPaidInCapitalMember2020-12-310000040211us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310000040211us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310000040211us-gaap:AdditionalPaidInCapitalMember2022-03-310000040211us-gaap:AdditionalPaidInCapitalMember2021-03-310000040211us-gaap:RetainedEarningsMember2021-12-310000040211us-gaap:RetainedEarningsMember2020-12-310000040211us-gaap:RetainedEarningsMember2021-01-012021-03-310000040211us-gaap:RetainedEarningsMember2022-03-310000040211us-gaap:RetainedEarningsMember2021-03-310000040211us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000040211us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000040211us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000040211us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000040211us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310000040211us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-31gmt:Segment0000040211gmt:PortfolioManagementMember2021-03-31gmt:AircraftEngines0000040211gmt:RollsRoyceAircraftEnginesMembergmt:PortfolioManagementMember2021-01-012021-03-310000040211gmt:RollsRoyceAircraftEnginesMembergmt:RrpfJointVenturesMembergmt:PortfolioManagementMember2021-03-310000040211gmt:RollsRoyceAircraftEnginesMembergmt:RrpfJointVenturesMembergmt:PortfolioManagementMember2021-01-012021-01-310000040211us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMember2022-03-31gmt:Instrument0000040211us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMember2021-12-310000040211us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2022-03-310000040211us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2021-12-310000040211us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310000040211us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000040211us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310000040211us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000040211us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310000040211us-gaap:NondesignatedMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000040211us-gaap:FairValueMeasurementsRecurringMember2022-03-310000040211us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000040211us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310000040211gmt:RecourseDebtMember2022-03-310000040211gmt:RecourseDebtMember2021-12-310000040211us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2022-01-012022-03-310000040211us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2021-01-012021-03-310000040211us-gaap:InterestExpenseMember2022-01-012022-03-310000040211us-gaap:InterestExpenseMember2021-01-012021-03-310000040211us-gaap:CashFlowHedgingMember2022-01-012022-03-310000040211us-gaap:CashFlowHedgingMember2021-01-012021-03-310000040211us-gaap:OtherNonoperatingIncomeExpenseMember2022-01-012022-03-310000040211us-gaap:OtherNonoperatingIncomeExpenseMember2021-01-012021-03-310000040211us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2022-01-012022-03-310000040211us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:InterestRateContractMember2022-01-012022-03-310000040211us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2021-01-012021-03-310000040211us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:InterestRateContractMember2021-01-012021-03-310000040211us-gaap:InterestExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateContractMember2022-01-012022-03-310000040211us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateContractMember2022-01-012022-03-310000040211us-gaap:InterestExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateContractMember2021-01-012021-03-310000040211us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateContractMember2021-01-012021-03-310000040211us-gaap:InterestExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2022-01-012022-03-310000040211us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2022-01-012022-03-310000040211us-gaap:InterestExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2021-01-012021-03-310000040211us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2021-01-012021-03-310000040211us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-03-310000040211us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310000040211us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310000040211us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310000040211us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-03-310000040211us-gaap:PensionPlansDefinedBenefitMember2021-01-012021-03-310000040211us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-03-310000040211us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-03-310000040211us-gaap:RestrictedStockMember2022-01-012022-03-310000040211us-gaap:PerformanceSharesMember2022-01-012022-03-310000040211gmt:PhantomStockUnitsMember2022-01-012022-03-31xbrli:pure0000040211us-gaap:FinancialStandbyLetterOfCreditMember2022-03-310000040211us-gaap:FinancialStandbyLetterOfCreditMember2021-12-310000040211us-gaap:DerivativeMembergmt:RrpfJointVenturesMember2022-03-310000040211us-gaap:DerivativeMembergmt:RrpfJointVenturesMember2021-12-310000040211us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000040211us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310000040211us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310000040211us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-03-310000040211us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-03-310000040211us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-03-310000040211us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310000040211us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-03-310000040211us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-03-310000040211gmt:RollsRoyceAircraftEnginesMembergmt:RrpfJointVenturesMembergmt:PortfolioManagementMember2022-03-310000040211gmt:RollsRoyceAircraftEnginesMembergmt:RrpfJointVenturesMembergmt:PortfolioManagementMember2021-01-012021-03-310000040211gmt:PortfolioManagementMember2022-03-310000040211gmt:RailNorthAmericaMember2022-01-012022-03-310000040211gmt:RailInternationalMember2022-01-012022-03-310000040211gmt:PortfolioManagementMember2022-01-012022-03-310000040211gmt:OtherBusinessSegmentsMember2022-01-012022-03-310000040211gmt:ParentAndEquityMethodInvestmentsMember2022-01-012022-03-310000040211gmt:RailNorthAmericaMember2022-03-310000040211gmt:RailInternationalMember2022-03-310000040211gmt:OtherBusinessSegmentsMember2022-03-310000040211gmt:RailNorthAmericaMember2021-01-012021-03-310000040211gmt:RailInternationalMember2021-01-012021-03-310000040211gmt:PortfolioManagementMember2021-01-012021-03-310000040211gmt:OtherBusinessSegmentsMember2021-01-012021-03-310000040211gmt:ParentAndEquityMethodInvestmentsMember2021-01-012021-03-310000040211gmt:RailNorthAmericaMember2021-12-310000040211gmt:PortfolioManagementMember2021-12-310000040211gmt:RailInternationalMember2021-12-310000040211gmt:OtherBusinessSegmentsMember2021-12-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________________ 
FORM 10-Q
__________________________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 1-2328
gmt-20220331_g1.jpg
GATX Corporation
(Exact name of registrant as specified in its charter)
New York36-1124040
(State of incorporation)(I.R.S. Employer Identification No.)

233 South Wacker Drive
Chicago, Illinois 60606-7147
(Address of principal executive offices, including zip code)
(312) 621-6200
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of Each Exchange on Which Registered
Common StockGATXNew York Stock Exchange
GATXChicago Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer 
Smaller reporting company
Non-accelerated filer 
Emerging growth company
Accelerated filer 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

There were 35.6 million common shares outstanding at March 31, 2022.



GATX CORPORATION
FORM 10-Q
QUARTERLY REPORT FOR THE PERIOD ENDED MARCH 31, 2022

INDEX
Item No.Page No.
Part I - FINANCIAL INFORMATION
Item 1
 
 
 
 15
Item 2
Item 3
Item 4
Part II - OTHER INFORMATION
Item 1
Item 1A
Item 2
Item 6



FORWARD-LOOKING STATEMENTS

Statements in this report not based on historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and, accordingly, involve known and unknown risks and uncertainties that are difficult to predict and could cause our actual results, performance, or achievements to differ materially from those discussed. Forward-looking statements include statements as to our future expectations, beliefs, plans, strategies, objectives, events, conditions, financial performance, prospects, or future events. In some cases, forward-looking statements can be identified by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "outlook," "continue," "likely," "will," "would", and similar words and phrases. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the date they are made, and are not guarantees of future performance. We do not undertake any obligation to publicly update or revise these forward-looking statements.

The following factors, in addition to those discussed under "Risk Factors" and elsewhere in our other filings with the U.S. Securities and Exchange Commission ("SEC"), including our Form 10-K for the year ended December 31, 2021 and in any subsequent reports on Form 10-Q, could cause actual results to differ materially from our current expectations expressed in forward looking statements:

the duration and effects of the global COVID-19 pandemic and any mandated pandemic mitigation requirements, including adverse impacts on our business, personnel, operations, commercial activity, supply chain, the demand for our transportation assets, the value of our assets, our liquidity, and macroeconomic conditions
exposure to damages, fines, criminal and civil penalties, and reputational harm arising from a negative outcome in litigation, including claims arising from an accident involving our transportation assets
inability to maintain our transportation assets on lease at satisfactory rates due to oversupply of assets in the market or other changes in supply and demand
a significant decline in customer demand for our transportation assets or services, including as a result of:
weak macroeconomic conditions
weak market conditions in our customers' businesses
adverse changes in the price of, or demand for, commodities
changes in railroad operations, efficiency, pricing and service offerings, including those related to "precision scheduled railroading"
changes in, or disruptions to, supply chains
availability of pipelines, trucks, and other alternative modes of transportation
changes in conditions affecting the aviation industry, including reduced demand for air travel, geographic exposure and customer concentrations
other operational or commercial needs or decisions of our customers
customers' desire to buy, rather than lease, our transportation assets
higher costs associated with increased assignments of our transportation assets following non-renewal of leases, customer defaults, and compliance maintenance programs or other maintenance initiatives
events having an adverse impact on assets, customers, or regions where we have a concentrated investment exposure
financial and operational risks associated with long-term purchase commitments for transportation assets
reduced opportunities to generate asset remarketing income
inability to successfully consummate and manage ongoing acquisition and divestiture activities
reliance on Rolls-Royce in connection with our aircraft spare engine leasing businesses, and the risks that certain factors that adversely affect Rolls-Royce could have an adverse effect on our businesses
fluctuations in foreign exchange rates
inflation and deflation
failure to successfully negotiate collective bargaining agreements with the unions representing a substantial portion of our employees
asset impairment charges we may be required to recognize
deterioration of conditions in the capital markets, reductions in our credit ratings, or increases in our financing costs
changes in banks' inter-lending rate reporting practices and the phasing out of LIBOR
competitive factors in our primary markets, including competitors with significantly lower costs of capital
risks related to our international operations and expansion into new geographic markets, including laws, regulations, tariffs, taxes, treaties or trade barriers affecting our activities in the countries where we do business
changes in, or failure to comply with, laws, rules, and regulations
U.S. and global political conditions, including the ongoing military action between Russia and Ukraine
inability to obtain cost-effective insurance
environmental liabilities and remediation costs
potential obsolescence of our assets
inadequate allowances to cover credit losses in our portfolio
operational, functional and regulatory risks associated with severe weather events, climate change and natural disasters
inability to maintain and secure our information technology infrastructure from cybersecurity threats and related disruption of our business
changes in assumptions, increases in funding requirements or investment losses in our pension and post-retirement plans
inability to maintain effective internal control over financial reporting and disclosure controls and procedures

1


PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
GATX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except share data)

March 31December 31
20222021
Assets
Cash and Cash Equivalents
$649.3 $344.3 
Restricted Cash
0.2 0.2 
Receivables
Rent and other receivables
69.9 69.8 
Finance leases (as lessor)
98.9 100.2 
Less: allowance for losses
(6.1)(6.2)
162.7 163.8 
Operating Assets and Facilities
11,203.2 11,163.6 
Less: allowance for depreciation
(3,328.3)(3,378.8)
7,874.9 7,784.8 
Lease Assets (as lessee)
Right-of-use assets, net of accumulated depreciation
262.8 270.7 
Finance leases, net of accumulated depreciation
 1.5 
262.8 272.2 
Investments in Affiliated Companies
585.0 588.4 
Goodwill
120.3 123.0 
Other Assets
253.4 265.0 
Total Assets
$9,908.6 $9,541.7 
Liabilities and Shareholders’ Equity
Accounts Payable and Accrued Expenses
$170.5 $215.8 
Debt
Commercial paper and borrowings under bank credit facilities
18.6 18.1 
Recourse
6,256.9 5,887.5 
6,275.5 5,905.6 
Lease Obligations (as lessee)
Operating leases
273.4 286.2 
Finance leases
 1.5 
273.4 287.7 
Deferred Income Taxes
1,013.5 1,001.0 
Other Liabilities
114.9 112.4 
Total Liabilities
7,847.8 7,522.5 
Shareholders’ Equity
Common stock, $0.625 par value:
Authorized shares — 120,000,000
Issued shares — 68,533,697 and 68,254,574
Outstanding shares — 35,609,060 and 35,421,617
42.4 42.2 
Additional paid in capital
781.5 763.8 
Retained earnings
2,808.1 2,751.5 
Accumulated other comprehensive loss
(184.5)(160.6)
Treasury stock at cost (32,924,637 and 32,832,957 shares)
(1,386.7)(1,377.7)
Total Shareholders’ Equity
2,060.8 2,019.2 
Total Liabilities and Shareholders’ Equity
$9,908.6 $9,541.7 

See accompanying notes to condensed consolidated financial statements.
2


GATX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(In millions, except per share data)
Three Months Ended
March 31
20222021
Revenues
Lease revenue
$283.3 $280.6 
Marine operating revenue
6.2 3.6 
Other revenue
27.1 21.6 
Total Revenues
316.6 305.8 
Expenses
Maintenance expense
74.6 74.3 
Marine operating expense
4.2 4.6 
Depreciation expense
89.5 88.6 
Operating lease expense
9.1 10.9 
Other operating expense
10.7 10.2 
Selling, general and administrative expense
47.2 47.1 
Total Expenses
235.3 235.7 
Other Income (Expense)
Net gain on asset dispositions
73.7 22.5 
Interest expense, net
(51.2)(53.6)
Other expense
(2.0)(1.3)
Income before Income Taxes and Share of Affiliates’ Earnings
101.8 37.7 
Income taxes
(22.4)(8.4)
Share of affiliates’ (losses) earnings, net of taxes
(3.6)7.2 
Net Income
$75.8 $36.5 
Other Comprehensive Income, Net of Taxes
Foreign currency translation adjustments
(25.8)(36.6)
Unrealized gain on derivative instruments
0.4 0.6 
Post-retirement benefit plans
1.5 2.5 
Other comprehensive loss
(23.9)(33.5)
Comprehensive Income
$51.9 $3.0 
Share Data
Basic earnings per share
$2.13 $1.04 
Average number of common shares
35.5 35.2 
Diluted earnings per share
$2.10 $1.02 
Average number of common shares and common share equivalents
36.0 35.9 

See accompanying notes to condensed consolidated financial statements.
3


GATX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
Three Months Ended
March 31
20222021
Operating Activities
Net income
$75.8 $36.5 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense
92.8 92.0 
Net gains on sales of assets
(70.8)(21.8)
Deferred income taxes
16.6 2.5 
Share of affiliates’ (losses) earnings, net of dividends
3.6 (7.2)
Changes in working capital items
(17.8)(25.6)
Net cash provided by operating activities
100.2 76.4 
Investing Activities
Portfolio investments and capital additions
(370.4)(509.5)
Portfolio proceeds
151.5 47.0 
Proceeds from sales of other assets
11.8 15.3 
Other
28.1 0.4 
Net cash used in investing activities
(179.0)(446.8)
Financing Activities
Net proceeds from issuances of debt (original maturities longer than 90 days)
395.9 1,074.1 
Net increase (decrease) in debt with original maturities of 90 days or less
0.9 (3.2)
Stock repurchases
(9.0) 
Dividends
(20.4)(19.7)
Purchases of assets previously leased(1.5)(33.3)
 Other19.7 20.8 
Net cash provided by financing activities
385.6 1,038.7 
Effect of Exchange Rate Changes on Cash and Cash Equivalents
(1.8)(1.8)
Net increase in Cash, Cash Equivalents, and Restricted Cash during the period
305.0 666.5 
Cash, Cash Equivalents, and Restricted Cash at beginning of the period
344.5 292.6 
Cash, Cash Equivalents, and Restricted Cash at end of the period
$649.5 $959.1 

See accompanying notes to condensed consolidated financial statements.
4


GATX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)
(In millions)
Three Months Ended
March 31
20222021
SharesDollarsSharesDollars
Common Stock
Balance at beginning of the period
68.3 $42.2 67.8 $41.9 
Issuance of common stock
0.2 0.2 0.3 0.2 
Balance at end of the period
68.5 42.4 68.1 42.1 
Treasury Stock
Balance at beginning of the period
(32.8)(1,377.7)(32.7)(1,364.5)
Stock repurchases
(0.1)(9.0)  
Balance at end of the period
(32.9)(1,386.7)(32.7)(1,364.5)
Additional Paid In Capital
Balance at beginning of the period
763.8 735.4 
Share-based compensation effects
17.7 17.7 
Balance at end of the period
781.5 753.1 
Retained Earnings
Balance at beginning of the period
2,751.5 2,682.1 
Net income
75.8 36.5 
Dividends declared ($0.52 and $0.50 per share)
(19.2)(18.3)
Balance at end of the period
2,808.1 2,700.3 
Accumulated Other Comprehensive Loss
Balance at beginning of the period
(160.6)(137.5)
 Other comprehensive loss(23.9)(33.5)
Balance at end of the period
(184.5)(171.0)
Total Shareholders’ Equity
$2,060.8 $1,960.0 

See accompanying notes to condensed consolidated financial statements.


5

GATX CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


NOTE 1. Description of Business

As used herein, "GATX," "we," "us," "our," and similar terms refer to GATX Corporation and its subsidiaries, unless indicated otherwise.

We lease, operate, manage, and remarket long-lived, widely-used assets, primarily in the rail market. We report our financial results through three primary business segments: Rail North America, Rail International, and Portfolio Management. Financial results for our tank container leasing business ("Trifleet leasing") are reported in the Other segment.

In the first quarter of 2021, GATX invested directly in aircraft spare engines through its new entity, GATX Engine Leasing ("GEL"). GEL acquired 14 aircraft spare engines for approximately $352 million, including 4 engines for $120 million from the Rolls-Royce & Partners Finance joint ventures (collectively the “RRPF affiliates” or "RRPF"). Financial results for this business are reported in the Portfolio Management segment.

NOTE 2. Basis of Presentation

We prepared the accompanying unaudited condensed consolidated financial statements in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, our unaudited condensed consolidated financial statements do not include all of the information and footnotes required for complete financial statements. We have included all of the normal recurring adjustments that we deemed necessary for a fair presentation.

Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results we may achieve for the entire year ending December 31, 2022. In particular, asset remarketing income does not occur evenly throughout the year. For more information, refer to the consolidated financial statements and footnotes in our Annual Report on Form 10-K for the year ended December 31, 2021.

New Accounting Pronouncements Adopted
Standard/DescriptionEffective Date and Adoption ConsiderationsEffect on Financial Statements or Other Significant Matters
Variable Lease Payments

In July 2021, the FASB issued ASU 2021-05, Leases (Topic 842) - Lessors - Certain Leases with Variable Lease Payments, which requires lessors to classify leases as operating leases if they have variable lease payments that do not depend on an index or rate and would have selling losses if they were classified as finance leases.


The new guidance is effective for us in the first quarter of 2022.


The application of this guidance did not impact our financial statements or related disclosures.

New Accounting Pronouncements Not Yet Adopted
Standard/DescriptionEffective Date and Adoption ConsiderationsEffect on Financial Statements or Other Significant Matters
Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional practical expedients and exceptions in the application of GAAP principles to contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates being discontinued as a result of reference rate reform.


Optional expedients are available for adoption from March 12, 2020 through December 31, 2022.


For any contracts that reference LIBOR, we are currently assessing how this standard may be applied to specific contract modifications through December 31, 2022.


6

GATX CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTE 3. Revenue

Revenue Recognition

Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

We disaggregate revenue into three categories as presented on our statement of comprehensive income:

Lease Revenue

Lease revenue, which includes operating lease revenue and finance lease revenue, is our primary source of revenue.

Operating Lease Revenue

We lease railcars, aircraft spare engines, tank containers, and other operating assets under full-service and net operating leases. We price full-service leases as an integrated service that includes amounts related to maintenance, insurance, and ad valorem taxes. We do not offer stand-alone maintenance service contracts. Operating lease revenue is within the scope of Topic 842, and we have elected not to separate non-lease components from the associated lease component for qualifying leases. Operating lease revenue is recognized on a straight-line basis over the term of the underlying lease. As a result, lease revenue may not be recognized in the same period as maintenance and other costs, which we expense as incurred. Variable rents are recognized when applicable contingencies are resolved. Revenue is not recognized if collectability is not reasonably assured. See "Note 4. Leases".

Finance Lease Revenue

In certain cases, we lease railcars, tank containers, and other operating assets that, at lease inception, are classified as finance leases. In accordance with Topic 842, finance lease revenue is recognized using the interest method, which produces a constant yield over the lease term. Initial unearned income is the amount by which the original lease payment receivable and the estimated residual value of the leased asset exceeds the original cost or carrying value of the leased asset. See "Note 4. Leases".

Marine Operating Revenue

We generate marine operating revenue through shipping services completed by our marine vessels. For vessels operating in a pooling arrangement, we recognize pool revenue based on the right to receive our portion of net distributions reported by the pool, with net distributions being the net voyage revenue of the pool after deduction of voyage expenses. For vessels operating out of the pool, we recognize revenue over time as the performance obligation is satisfied, beginning when cargo is loaded through its delivery and discharge.

Other Revenue

Other revenue is comprised of customer liability repair revenue, termination fees, utilization income, fee income, and other miscellaneous revenues. Select components of other revenue are within the scope of Topic 606. Revenue attributable to terms provided in our lease contracts are variable lease components that are recognized when earned, in accordance with Topic 842.

NOTE 4. Leases

GATX as Lessor

We lease railcars, aircraft spare engines, tank containers, and other operating assets under full-service and net operating leases. We price full-service leases as an integrated service that includes amounts related to maintenance, insurance, and ad valorem taxes. In accordance with applicable guidance, we do not separate lease and non-lease components when reporting revenue for our full-service operating leases. In some cases, we lease railcars and tank containers that, at commencement, are classified as finance leases. For certain operating leases, revenue is based on equipment usage and is recognized when earned. Typically, our leases do not provide customers with renewal options or options to purchase the asset. Our lease agreements do not generally have residual value guarantees. We collect reimbursements from customers for damage to our railcars, as well as additional rental payments for usage above specified levels, as provided in the lease agreements.

7

GATX CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following table shows the components of our lease income (in millions):
Three Months Ended
March 31
20222021
Operating lease income:
Fixed lease income
$260.3 $262.1 
Variable lease income
20.8 16.8 
Total operating lease income
$281.1 $278.9 
Finance lease income
2.2 1.7 
Total lease income
$283.3 $280.6 

In accordance with the terms of our leases with customers, we may earn additional revenue, primarily for customer liability repairs. These amounts are reported in other revenue in the statements of comprehensive income and were $22.6 million and $16.8 million for the three months ended March 31, 2022 and 2021.

NOTE 5. Fair Value Disclosure

The assets and liabilities that GATX records at fair value on a recurring basis consisted entirely of derivatives at March 31, 2022 and December 31, 2021.

In addition, we review long-lived assets, such as operating assets and facilities, investments in affiliates, and goodwill, for impairment whenever circumstances indicate that the carrying amount of these assets may not be recoverable or when assets may be classified as held for sale. We considered the Russia/Ukraine conflict as part of our assessment during the quarter and determined there were no material impacts on our final conclusions. We will continue to monitor our long-lived assets, investments in affiliates, and goodwill for indicators of impairment as this conflict continues to impact the global economy.

Derivative Instruments

Fair Value Hedges

We use interest rate swaps to manage the fixed-to-floating rate mix of our debt obligations by converting a portion of our fixed rate debt to floating rate debt. For fair value hedges, we recognize changes in fair value of both the derivative and the hedged item as interest expense. We had five instruments outstanding with an aggregate notional amount of $300.0 million as of March 31, 2022 with maturities ranging from 2022 to 2027 and five instruments outstanding with an aggregate notional amount of $300.0 million as of December 31, 2021 with maturities ranging from 2022 to 2027.

Cash Flow Hedges

We use Treasury rate locks and swap rate locks to hedge our exposure to interest rate risk on anticipated transactions. We also use currency swaps, forwards, and put/call options to hedge our exposure to fluctuations in the exchange rates of foreign currencies for certain loans and operating expenses denominated in non-functional currencies. We had twelve instruments outstanding with an aggregate notional amount of $132.3 million as of March 31, 2022 that mature in 2022 and one instrument outstanding with an aggregate notional amount of $101.7 million as of December 31, 2021 that matures in 2022. Within the next 12 months, we expect to reclassify $1.7 million ($1.2 million after-tax) of net losses on previously terminated derivatives from accumulated other comprehensive loss to interest expense or operating lease expense, as applicable. We reclassify these amounts when interest and operating lease expense on the related hedged transactions affect earnings.

Non-Designated Derivatives

We do not hold derivative financial instruments for purposes other than hedging, although certain of our derivatives are not designated as accounting hedges. We recognize changes in the fair value of these derivatives in other income (expense) immediately.

Certain of our derivative instruments contain credit risk provisions that could require us to make immediate payment on net liability positions in the event that we default on certain outstanding debt obligations. The aggregate fair value of our derivative instruments with credit risk related contingent features that were in a liability position as of March 31, 2022 was $5.1 million. We are not required to post any collateral on our derivative instruments and do not expect the credit risk provisions to be triggered.

8

GATX CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

In the event that a counterparty fails to meet the terms of an interest rate swap agreement or a foreign exchange contract, our exposure is limited to the fair value of the swap, if in our favor. We manage the credit risk of counterparties by transacting with institutions that we consider financially sound and by avoiding concentrations of risk with a single counterparty. We believe that the risk of non-performance by any of our counterparties is remote.

The following table shows our derivative assets and liabilities that are measured at fair value (in millions):
Significant Observable Inputs (Level 2)
Balance Sheet LocationFair Value
March 31,
2022
Fair Value
December 31,
2021
Derivative Assets
Interest rate contracts (1)
Other assets$0.4 $1.4 
Foreign exchange contracts (1)
Other assets6.5 3.6 
Foreign exchange contracts (2)
Other assets5.3 3.9 
Total derivative assets$12.2 $8.9 
Derivative Liabilities
Interest rate contracts (1)
Other liabilities
$5.0 $0.3 
Foreign exchange contracts (1)
Other liabilities
0.1  
Total derivative liabilities$5.1 $0.3 
_________
(1)     Designated as hedges.
(2)     Not designated as hedges.

We value derivatives using a pricing model with inputs (such as yield curves and foreign currency rates) that are observable in the market or that can be derived principally from observable market data. As of March 31, 2022 and December 31, 2021, all derivatives were classified as Level 2 in the fair value hierarchy. There were no derivatives classified as Level 1 or Level 3.


9

GATX CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following table shows the amounts recorded on the balance sheet related to cumulative basis adjustments for fair value hedges as of March 31, 2022 and December 31, 2021 (in millions):
Carrying Amount of the Hedged Assets/(Liabilities)Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
Line Item in the Balance Sheet in Which the Hedged Item is IncludedMarch 31
2022
December 31
2021
March 31
2022
December 31
2021
Recourse debt
$(298.9)$(300.4)$(4.6)$1.1 

The following table shows the impacts of our derivative instruments on our statements of comprehensive income for the three months ended March 31, 2022 and 2021 (in millions):
Amount of Loss (Gain) Recognized in Other Comprehensive IncomeLocation of Loss (Gain) Reclassified from Accumulated Other Comprehensive Income into IncomeAmount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Income into Income
Three Months
Ended March 31
Three Months
Ended March 31
Derivative Designation2022202120222021
Derivatives in cash flow hedging relationships:
Foreign exchange contracts
$(3.3)$(4.8)Interest expense$0.4 $0.6 
Total$(3.3)$(4.8)Other (income) expense(2.9)(4.7)
Total$(2.5)$(4.1)


10

GATX CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following table shows the impact of our fair value and cash flow hedge accounting relationships, as well as the impact of our non-designated derivatives, on the statements of comprehensive income for the three months ended March 31, 2022 and 2021 (in millions):
Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
Three Months Ended
March 31
Three Months Ended
March 31
20222021
 
 
Interest (expense),
net
Other income
(expense)
Interest (expense),
net
Other income
(expense)
Total amounts of income and expense presented in the statements of comprehensive income in which the effects of fair value or cash flow hedges are recorded$(51.2)$(2.0)$(53.6)$(1.3)
Gain (loss) on fair value hedging relationships
Interest rate contracts:
Hedged items
5.7  1.3  
Derivatives designated as hedging instruments
(5.7) (1.3) 
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from accumulated other comprehensive income into income
(0.4) (0.6) 
Foreign exchange contracts:
Amount of gain (loss) reclassified from accumulated other comprehensive income into income (1)
 2.9  4.7 
Gain (loss) on non-designated derivative contracts 1.5  2.0 
_______
(1) These amounts are substantially offset by foreign currency remeasurement adjustments on related hedged instruments, also recognized in other income (expense).
Other Financial Instruments

Except for derivatives, as disclosed above, GATX has no other assets and liabilities measured at fair value on a recurring basis. The carrying amounts of cash and cash equivalents, restricted cash, rent and other receivables, accounts payable, and commercial paper and borrowings under bank credit facilities with maturities under one year approximate fair value due to the short maturity of those instruments. We estimate the fair values of fixed and floating rate debt using discounted cash flow analyses that are based on interest rates currently offered for loans with similar terms to borrowers of similar credit quality. The inputs we use to estimate each of these values are classified in Level 2 of the fair value hierarchy because they are directly or indirectly observable inputs.

The following table shows the carrying amounts and fair values of our other financial instruments (in millions):
March 31, 2022December 31, 2021
 
 
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Liabilities
Recourse fixed rate debt$6,037.7 $5,962.5 $5,666.1 $6,040.2 
Recourse floating rate debt250.0 250.0 250.0 250.0 

11

GATX CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTE 6. Pension and Other Post-Retirement Benefits

The following table shows the components of net periodic cost for the three months ended March 31, 2022 and 2021 (in millions):

 
 
 
 
2022
Pension
Benefits
2021
Pension
Benefits
2022
Retiree
Health and Life
2021
Retiree
Health and Life
Service cost
$2.0 $2.2 $ $ 
Interest cost
2.6 2.0 0.1 0.1 
Expected return on plan assets
(4.0)(4.7)  
Amortization of (1):
Unrecognized prior service credit
 —   
Unrecognized net actuarial loss (gain)
2.2 3.4 (0.1)(0.1)
Net periodic cost
$2.8 $2.9 $ $ 
_______
(1) Amounts reclassified from accumulated other comprehensive loss.

The service cost component of net periodic cost is recorded in selling, general and administrative expense in the statements of comprehensive income, and the non-service components are recorded in other expense.

NOTE 7. Share-Based Compensation

During the three months ended March 31, 2022, we granted 284,400 non-qualified employee stock options, 39,740 restricted stock units, 62,350 performance shares, and 3,769 phantom stock units. For the three months ended March 31, 2022, total share-based compensation expense was $4.7 million and the related tax benefits were $1.2 million. For the three months ended March 31, 2021, total share-based compensation expense was $6.0 million and the related tax benefits were $1.5 million.

The estimated fair value of our 2022 non-qualified employee stock option awards and related underlying assumptions are shown in the table below:
2022
Weighted-average estimated fair value$34.77 
Quarterly dividend rate$0.52 
Expected term of stock options, in years4.3
Risk-free interest rate1.6 %
Dividend yield2.0 %
Expected stock price volatility35.0 %
Present value of dividends$8.58 

NOTE 8. Income Taxes

The following table shows our effective income tax rate for the three months ended March 31:
20222021
Effective income tax rate22.0 %22.2 %

The difference in the effective rate for the current year compared to the prior year is primarily due to a reduction in the statutory tax rate of Austria in the current year, as well as the mix of pre-tax income among domestic and foreign jurisdictions, which are taxed at different rates.

NOTE 9. Commercial Commitments

We have entered into various commercial commitments, such as guarantees, standby letters of credit, performance bonds, and guarantees related to certain transactions. These commercial commitments require us to fulfill specific obligations in the event of third-party demands. Similar to our balance sheet investments, these commitments expose us to credit, market, and equipment risk.
12

GATX CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Accordingly, we evaluate these commitments and other contingent obligations using techniques similar to those we use to evaluate funded transactions.

The following table shows our commercial commitments (in millions):
March 31
2022
December 31
2021
Standby letters of credit and performance bonds$9.0 $9.0 
Derivative guarantees 0.5 
Total commercial commitments (1)$9.0 $9.5 
_______
(1) There were no liabilities recorded on the balance sheet for commercial commitments at March 31, 2022 and December 31, 2021. As of March 31, 2022, our outstanding commitments expire in 2022 through 2023. We are not aware of any event that would require us to satisfy any of our commitments.

We are parties to standby letters of credit and performance bonds, which primarily relate to contractual obligations and general liability insurance coverages. No material claims have been made against these obligations, and no material losses are anticipated. We also guarantee payment by an affiliate for final settlement of certain derivatives if they are in a liability position at expiration. The amount of the payment is ultimately determined by the value of the derivative upon final settlement.

NOTE 10. Earnings per Share

We compute basic earnings per share by dividing net income available to our common shareholders by the weighted-average number of shares of our common stock outstanding. We weight shares issued or reacquired for the portion of the period that they were outstanding. Our diluted earnings per share reflect the impacts of our potentially dilutive securities, which include our equity compensation awards.

The following table shows the computation of our basic and diluted earnings per common share (in millions, except per share amounts):
Three Months Ended
March 31
20222021
Numerator:
Net income
$75.8 $36.5 
Denominator:
Weighted-average shares outstanding - basic
35.5 35.2 
Effect of dilutive securities:
Equity compensation plans0.5 0.7 
Weighted-average shares outstanding - diluted
36.0 35.9 
Basic earnings per share
$2.13 $1.04 
Diluted earnings per share
$2.10 $1.02 

13

GATX CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTE 11. Accumulated Other Comprehensive Loss

The following table shows the change in components for accumulated other comprehensive loss (in millions):

 
 
 
 Foreign Currency Translation LossUnrealized Gain (Loss) on Derivative InstrumentsPost-Retirement Benefit Plans Total
Balance at December 31, 2021$(95.4)$(12.6)$(52.6)$(160.6)
Change in component(25.8)3.3 (0.1)(22.6)
Reclassification adjustments into earnings (1) (2.5)2.1 (0.4)
Income tax effect (0.4)(0.5)(0.9)
Balance at March 31, 2022$(121.2)$(12.2)$(51.1)$(184.5)
________
(1)     See "Note 5. Fair Value Disclosure" and "Note 6. Pension and Other Post-Retirement Benefits" for impacts of the reclassification adjustments on the statements of comprehensive income.

NOTE 12. Legal Proceedings and Other Contingencies

Various legal actions, claims, assessments and other contingencies arising in the ordinary course of business are pending against GATX and certain of our subsidiaries. These matters are subject to many uncertainties, and it is possible that some of these matters could ultimately be decided, resolved or settled adversely. For a full discussion of our pending legal matters, please refer to the notes included with our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2021.
14

GATX CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)


NOTE 13. Financial Data of Business Segments

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

We lease, operate, manage, and remarket long-lived, widely-used assets, primarily in the rail market. We report our financial results through three primary business segments: Rail North America, Rail International, and Portfolio Management. Financial results for our tank container leasing business ("Trifleet leasing") are reported in the Other segment.

In the first quarter of 2021, GATX invested directly in aircraft spare engines through its new entity, GEL. GEL acquired 14 aircraft spare engines for approximately $352 million, including 4 engines for $120 million from the RRPF affiliates. Financial results for this business are reported in the Portfolio Management segment.

Rail North America is composed of our operations in the United States, Canada, and Mexico. 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 composed of our operations in Europe ("GATX Rail Europe" or "GRE"), India ("GRI"), and Russia ("Rail Russia"). GRE leases railcars to customers throughout Europe pursuant to full-service leases under which it maintains the railcars and provides value-adding services according to customer requirements.

Portfolio Management is composed primarily of our ownership in the RRPF affiliates, a group of joint ventures with Rolls-Royce plc that lease aircraft spare engines, GEL, our direct ownership of aircraft spare engines that we lease, as well as five liquefied gas carrying vessels (the "Specialized Gas Vessels") and assorted other marine assets.

Other includes our Trifleet leasing business, as well as selling, general and administrative expenses, income taxes, and certain other amounts not allocated to the segments.

Segment profit is an internal performance measure used by the Chief Executive Officer to assess the profitability of each segment. Segment profit includes all revenues, expenses, pre-tax earnings from affiliates, and net gains on asset dispositions that are directly attributable to each segment. We allocate interest expense to the segments based on what we believe to be the appropriate risk-adjusted borrowing costs for each segment. Segment profit excludes selling, general and administrative expenses, income taxes, and certain other amounts not allocated to the segments.



15

GATX CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following tables show certain segment data for each of our business segments (in millions):


Rail
North America

Rail International

Portfolio Management
OtherGATX Consolidated
Three Months Ended March 31, 2022
Revenues
Lease revenue
$200.7 $67.6 $8.3 $6.7 $283.3 
Marine operating revenue
  6.2  6.2 
Other revenue
23.0 2.3  1.8 27.1 
Total Revenues
223.7 69.9 14.5 8.5 316.6 
Expenses
Maintenance expense
59.9 14.0  0.7 74.6 
Marine operating expense
  4.2  4.2 
Depreciation expense
63.5 18.0 5.0 3.0 89.5 
Operating lease expense
9.1    9.1 
Other operating expense
7.3 2.4 0.5 0.5 10.7 
Total Expenses
139.8 34.4 9.7 4.2 188.1 
Other Income (Expense)
Net gain on asset dispositions
71.6 1.0 0.9 0.2 73.7 
Interest expense, net
(34.4)(11.2)(4.7)(0.9)(51.2)
Other expense
(0.7)(0.4)(0.1)(0.8)(2.0)
Share of affiliates' pre-tax losses
  (4.8) (4.8)
Segment profit (loss)
$120.4 $24.9 $(3.9)$2.8 $144.2 
Less:
Selling, general and administrative expense
47.2 
Income taxes (includes $1.2 of income tax benefit related to affiliates' losses)
21.2 
Net income
$75.8 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$64.4 $0.4 $ $0.1 $64.9 
Residual sharing income
2.0  0.9  2.9 
Non-remarketing net gains (1)
5.2 0.6  0.1 5.9 
$71.6 $1.0 $0.9 $0.2 $73.7 
Capital Expenditures
Portfolio investments and capital additions
$280.4 $78.9 $ $11.1 $370.4 
Selected Balance Sheet Data at March 31, 2022
Investments in affiliated companies
$0.3 $— $584.7 $— $585.0 
Identifiable assets
$6,228.4 $1,719.1 $1,040.1 $921.0 $9,908.6 
__________
(1) Includes net gains (losses) from scrapping of railcars and tank containers.


16

GATX CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)



Rail
North America

Rail International

Portfolio Management
OtherGATX Consolidated
Three Months Ended March 31, 2021
Revenues
Lease revenue
$206.8 $66.9 $3.3 $3.6 $280.6 
Marine operating revenue
  3.6  3.6 
Other revenue
17.8 2.5 0.2 1.1 21.6 
Total Revenues
224.6 69.4 7.1 4.7 305.8 
Expenses
Maintenance expense
58.4 15.4  0.5 74.3 
Marine operating expense
  4.6  4.6 
Depreciation expense
65.7 18.3 2.7 1.9 88.6 
Operating lease expense
10.9    10.9 
Other operating expense
7.6 2.0 0.2 0.4 10.2 
Total Expenses
142.6 35.7 7.5 2.8 188.6 
Other Income (Expense)
Net gain on asset dispositions
21.5 0.3 0.6 0.1 22.5 
Interest expense, net
(37.0)(12.2)(3.1)(1.3)(53.6)
Other expense
(0.8)  (0.5)(1.3)
Share of affiliates' pre-tax earnings
  9.0  9.0 
Segment profit
$65.7 $21.8 $6.1 $0.2 $93.8 
Less:
Selling, general and administrative expense
47.1 
Income taxes (includes $1.8 related to affiliates' earnings)
10.2 
Net income$36.5 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$16.3 $ $ $ $16.3 
Residual sharing income
0.1  0.6  0.7 
Non-remarketing net gains (1)
5.1 0.3  0.1 5.5 
$21.5 $0.3 $0.6 $0.1 $22.5 
Capital Expenditures
Portfolio investments and capital additions
$109.1 $44.4 $