Income Taxes

6 Months Ended

Jun. 30, 2011

Income Taxes [Abstract]

Income Taxes

NOTE 9. Income Taxes

          GATX’s effective tax rate was 25% for the six months ended June 30, 2011, compared to 22% for the six months ended June 30, 2010. In the prior year, GATX’s liability for unrecognized tax benefits was reduced by $3.7 million in connection with the close of various federal and foreign tax audits. Excluding the effect of the tax benefits, GATX’s effective rate for the first six months of 2010 was 29%. The difference in GATX’s effective tax rate was largely driven by variability in the mix of pre-tax income, including share of affiliates’ earnings, among domestic and foreign jurisdictions, which are taxed at different rates.

          As of June 30, 2011, GATX’s gross liability for unrecognized tax benefits totaled $43.3 million, which, if fully recognized, would decrease income tax expense by $23.3 million ($21.2 million net of federal tax).