Share-Based Compensation

9 Months Ended

Sep. 30, 2011

Share-Based Compensation [Abstract]

Share-Based Compensation

NOTE 8. Share-Based Compensation

In the first nine months of 2011, GATX granted 417,600 stock appreciation rights (“SARs”), 200,736 restricted stock units, 87,570 performance shares and 14,831 phantom stock units. For the three and nine months ended September 30, 2011, total share-based compensation expense was $2.0 million ($1.2 million after tax) and $6.9 million ($4.3 million after tax), respectively. For the three and nine months ended September 30, 2010, total share-based compensation expense was $1.6 million ($1.0 million after tax) and $5.0 million ($3.1 million after tax), respectively.

The weighted average estimated fair value of GATX’s 2011 SAR awards and underlying assumptions thereof are noted in the table below. The vesting period for the 2011 SAR grant is 3 years, with 1/3 vesting after each year.

	2011
Weighted average fair value of SAR award	$	13.88
Annual dividend	$	1.16
Expected life of the SAR, in years		4.3
Risk free interest rate		1.6	%
Dividend yield		3.4	%
Expected stock price volatility		41.91	%