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Financial Data of Business Segments
 6 Months Ended
Jun. 30, 2023
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 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 Trifleet Leasing are reported in the Other 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 ("Rail India"), and until January 31, 2023, Rail Russia. GRE primarily leases railcars to customers throughout Europe pursuant to full-service leases under which it maintains the railcars and provides value-added services according to customer requirements. In the first quarter of 2023, we completed the sale of Rail Russia. See "Note 6. Asset Impairments and Assets Held for Sale" for further information.

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 are leased or employed in engine capacity agreements, and the Specialized Gas Vessels. In the second quarter of 2023, GEL acquired nine aircraft spare engines for approximately $239 million, and GATX sold one of the Specialized Gas Vessels. GATX had previously sold one of the Specialized Gas Vessels in the first quarter of 2023 and two Specialized Gas Vessels in the third quarter of 2022. The one remaining vessel continues to be classified as held for sale as of June 30, 2023. See "Note 6. Asset Impairments and Assets Held for Sale" for further information.

Other includes Trifleet Leasing operations, 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.
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 June 30, 2023
Revenues
Lease revenue
$218.9 $73.1 $8.1 $8.5 $308.6 
Marine operating revenue
— — 2.0 — 2.0 
Other revenue
21.5 3.1 6.4 1.6 32.6 
Total Revenues
240.4 76.2 16.5 10.1 343.2 
Expenses
Maintenance expense
66.8 14.6 — 0.9 82.3 
Marine operating expense
— — 2.4 — 2.4 
Depreciation expense
66.1 16.6 6.1 3.3 92.1 
Operating lease expense
9.0 — — — 9.0 
Other operating expense
6.7 2.3 1.4 0.6 11.0 
Total Expenses
148.6 33.5 9.9 4.8 196.8 
Other Income (Expense)
Net gain on asset dispositions
34.1 0.7 6.0 0.3 41.1 
Interest expense (income), net
(44.5)(13.5)(6.5)0.8 (63.7)
Other (expense) income
(2.1)(2.6)0.2 (0.4)(4.9)
Share of affiliates' pre-tax earnings
— — 20.3 — 20.3 
Segment profit
$79.3 $27.3 $26.6 $6.0 $139.2 
Less:
Selling, general and administrative expense
52.0 
Income taxes (includes $6.3 related to affiliates' earnings)
23.9 
Net income
$63.3 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$30.7 $0.1 $5.9 $0.2 $36.9 
Residual sharing income
0.1 — 0.1 — 0.2 
Non-remarketing net gains (1)
3.3 0.6 — 0.1 4.0 
$34.1 $0.7 $6.0 $0.3 $41.1 
Capital Expenditures
Portfolio investments and capital additions
$161.3 $77.3 $239.0 $9.0 $486.6 
Selected Balance Sheet Data at June 30, 2023
Investments in affiliated companies
$0.4 $— $611.3 $— $611.7 
Identifiable assets
$6,680.2 $1,952.3 $1,371.6 $586.0 $10,590.1 
_________
(1) Includes net gains (losses) from scrapping of railcars.


Rail North America
Rail International
Portfolio Management		OtherGATX Consolidated
Three Months Ended June 30, 2022
Revenues
Lease revenue
$203.0 $66.5 $8.2 $7.2 $284.9 
Marine operating revenue
— — 5.2 — 5.2 
Other revenue
18.8 1.9 0.1 1.8 22.6 
Total Revenues
221.8 68.4 13.5 9.0 312.7 
Expenses
Maintenance expense
57.8 12.2 — 0.8 70.8 
Marine operating expense
— — 3.9 — 3.9 
Depreciation expense
64.9 17.2 4.9 3.0 90.0 
Operating lease expense
9.0 — — — 9.0 
Other operating expense
5.9 2.1 0.6 0.7 9.3 
Total Expenses
137.6 31.5 9.4 4.5 183.0 
Other Income (Expense)
Net gain (loss) on asset dispositions
5.1 1.4 (30.8)0.1 (24.2)
Interest expense, net
(34.9)(11.1)(4.6)(1.3)(51.9)
Other (expense) income
(1.3)1.1 — (11.1)(11.3)
Share of affiliates' pre-tax earnings
— — 15.6 — 15.6 
Segment profit (loss)
$53.1 $28.3 $(15.7)$(7.8)$57.9 
Less:
Selling, general and administrative expense
47.9 
Income taxes (includes $4.7 related to affiliates' earnings)
7.4 
Net income$2.6 
Net Gain (Loss) on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$1.2 $0.3 $— $0.1 $1.6 
Residual sharing income
0.1 — 0.7 — 0.8 
Non-remarketing net gains (1)
3.8 1.1 — — 4.9 
Asset impairments
— — (31.5)— (31.5)
$5.1 $1.4 $(30.8)$0.1 $(24.2)
Capital Expenditures
Portfolio investments and capital additions
$253.7 $48.8 $— $11.6 $314.1 
Selected Balance Sheet Data at December 31, 2022
Investments in affiliated companies
$0.8 $— $574.3 $— $575.1 
Identifiable assets
$6,445.7 $1,774.4 $1,106.6 $745.3 $10,072.0 
_________
(1) Includes net gains (losses) from scrapping of railcars


Rail North America
Rail International
Portfolio Management		OtherGATX Consolidated
Six Months Ended June 30, 2023
Revenues
Lease revenue
$434.0 $143.5 $16.4 $16.7 $610.6 
Marine operating revenue
— — 5.5 — 5.5 
Other revenue
45.3 6.0 10.9 3.8 66.0 
Total Revenues
479.3 149.5 32.8 20.5 682.1 
Expenses
Maintenance expense
133.7 30.5 — 2.0 166.2 
Marine operating expense
— — 4.4 — 4.4 
Depreciation expense
131.6 32.3 11.5 6.5 181.9 
Operating lease expense
18.0 — — — 18.0 
Other operating expense
13.7 4.5 2.3 1.5 22.0 
Total Expenses
297.0 67.3 18.2 10.0 392.5 
Other Income (Expense)
Net gain on asset dispositions
81.9 1.5 4.5 0.3 88.2 
Interest (expense) income, net
(86.8)(26.0)(12.2)2.3 (122.7)
Other (expense) income
(2.5)(6.9)(0.3)0.8 (8.9)
Share of affiliates' pre-tax (losses) earnings
(0.4)— 48.3 — 47.9 
Segment profit
$174.5 $50.8 $54.9 $13.9 $294.1 
Less:
Selling, general and administrative expense
102.4 
Income taxes (includes $13.2 related to affiliates' earnings)
51.0 
Net income
$140.7 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$75.4 $0.5 $5.5 $0.2 $81.6 
Residual sharing income
0.2 — 0.2 — 0.4 
Non-remarketing net gains (1)
6.3 1.0 — 0.1 7.4 
Asset impairments
— — (1.2)— (1.2)
$81.9 $1.5 $4.5 $0.3 $88.2 
Capital Expenditures
Portfolio investments and capital additions
$457.8 $158.4 $239.0 $18.4 $873.6 
_________
(1) Includes net gains (losses) from scrapping of railcars.


Rail North America
Rail International
Portfolio Management		OtherGATX Consolidated
Six Months Ended June 30, 2022
Revenues
Lease revenue
$403.7 $134.1 $16.5 $13.9 $568.2 
Marine operating revenue
— — 11.4 — 11.4 
Other revenue
41.8 4.2 0.1 3.6 49.7 
Total Revenues
445.5 138.3 28.0 17.5 629.3 
Expenses
Maintenance expense
117.7 26.2 — 1.5 145.4 
Marine operating expense
— — 8.1 — 8.1 
Depreciation expense
128.4 35.2 9.9 6.0 179.5 
Operating lease expense
18.1 — — — 18.1 
Other operating expense
13.2 4.5 1.1 1.2 20.0 
Total Expenses
277.4 65.9 19.1 8.7 371.1 
Other Income (Expense)
Net gain (loss) on asset dispositions
76.7 2.4 (29.9)0.3 49.5 
Interest expense, net
(69.3)(22.3)(9.3)(2.2)(103.1)
Other (expense) income
(2.0)0.7 (0.1)(11.9)(13.3)
Share of affiliates' pre-tax earnings
— — 10.8 — 10.8 
Segment profit (loss)
$173.5 $53.2 $(19.6)$(5.0)$202.1 
Less:
Selling, general and administrative expense
95.1 
Income taxes (includes $3.5 related to affiliates' earnings)
28.6 
Net income$78.4 
Net Gain (Loss) on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$65.6 $0.7 $— $0.2 $66.5 
Residual sharing income
2.1 — 1.6 — 3.7 
Non-remarketing net gains (1)
9.0 1.7 — 0.1 10.8 
Asset impairments
— — (31.5)— (31.5)
$76.7 $2.4 $(29.9)$0.3 $49.5 
Capital Expenditures
Portfolio investments and capital additions
$534.1 $127.7 $— $22.7 $684.5 
_________
(1) Includes net gains (losses) from scrapping of railcars.