Discontinued Operations

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

On May 14, 2020, we completed the sale of our ASC business. The proceeds of $258.3 million in cash included $1.1 million held in escrow, set aside to satisfy potential indemnification claims for one year after the sale date. The final proceeds of $1.1 million were received in May 2021.

Accordingly, the results of operations from our ASC business and gain on sale of ASC are reported in the accompanying consolidated statements of operations as “discontinued operations, net of taxes” for the years ended December 31, 2021, 2020, and 2019. As a result of the completion of the sale in May 2020, there were no operating results in 2021. There were no related assets and liabilities classified as assets and liabilities of discontinued operations as of December 31, 2021 and 2020 in the accompanying balance sheets. We recognized a net gain of $3.6 million, net of taxes, during the second quarter of 2020 in connection with this sale. In the third quarter of 2020, we recognized a net loss of $0.3 million, net of taxes. The net loss on sale recognized in the third quarter was attributable to final post-closing adjustments and expenses related to the sale.

Results of discontinued operations reflect directly attributable revenues, operating and ownership expenses, and income taxes. Results also reflect intercompany allocations for interest. Interest expense was zero for 2021, $2.0 million for 2020, and $6.1 million for 2019. Interest was allocated consistent with GATX's risk-adjusted approach for continuing operations.

The following table shows the financial results of our discontinued operations for the years ended December 31 (in millions):


	2021		2020		2019
Revenues	$	—	$	27.2	$	191.7
Expenses
Operating expense	—		22.5		138.8
Depreciation expense	—		1.7		10.6
Selling, general and administrative expense	—		2.8		8.2
Total Expenses	—		27.0		157.6
Other (expense) income	—		(3.0)		3.8
(Loss) Income from Discontinued Operations Before Taxes	—		(2.8)		37.9
Income tax benefit (expense)	—		0.6		(7.5)
Net (Loss) Income from Discontinued Operations, Net of Taxes	$	—	$	(2.2)	$	30.4
Gain on Sale of Discontinued Operations, Net of Taxes	—		3.3		—
Total Discontinued Operations, Net of Taxes	$	—	$	1.1	$	30.4

The following table shows cash flow information for our discontinued operations for the years ending December 31 (in millions):


	2021		2020		2019
Net Cash Used In (Provided By) Operating Activities	$	—	$	(8.5)	$	36.8
Net Cash Provided By Investing Activities (1)	1.1		240.9		8.1
Net Cash Provided By (Used In) Financing Activities	—		21.8		(45.0)
Cash Provided By (Used In) Discontinued Operations, Net	$	1.1	$	254.2	$	(0.1)

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(1) Net cash provided by investing activities included $1.1 million in 2021 for the final proceeds from the sale of ASC that had been held in escrow funds and $257.2 million of proceeds from the sale of ASC in 2020.