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Leases

12 Months Ended

Dec. 31, 2011

NOTE 5. Leases

The following information pertains to GATX as a lessor:

The components of GATX’s finance leases as of December 31 were (in millions):


	Leveraged Leases						Direct Financing						Total Finance Leases
	2011			2010			2011			2010			2011			2010
Total minimum lease payments receivable	$	617.0		$	637.4		$	341.4		$	363.7		$	958.4		$	1,001.1
Principal and interest on third-party nonrecourse debt		(518.6	)		(535.4	)		—			—			(518.6	)		(535.4	)

Net minimum future lease receivable		98.4			102.0			341.4			363.7			439.8			465.7
Estimated non-guaranteed residual value of leased assets		20.9			20.8			93.7			93.4			114.6			114.2
Unearned income		(31.8	)		(39.3	)		(187.7	)		(192.9	)		(219.5	)		(232.2	)

Finance leases		87.5			83.5			247.4			264.2			334.9			347.7
Allowance for losses		(9.0	)		(9.4	)		—			—			(9.0	)		(9.4	)
Deferred taxes		(62.7	)		(61.8	)		—			—			(62.7	)		(61.8	)

Net investment in finance leases	$	15.8		$	12.3		$	247.4		$	264.2		$	263.2		$	276.5

Leveraged Lease Income — Income from leveraged leases (net of taxes) was $4.6 million, $1.5 million and $2.8 million in 2011, 2010 and 2009, respectively.

Usage Rents — Rental income on certain operating leases is based on equipment usage. Rental income from usage rents was $27.4 million, $25.0 million and $24.2 million, in 2011, 2010 and 2009, respectively.

Initial Direct Costs — Deferred initial direct costs related to direct financial leases were $0.9 million as of both December 31, 2011 and 2010.

Minimum Future Receipts — Minimum future lease receipts from finance leases, net of debt payments for leveraged leases, and minimum future rental receipts from noncancelable operating leases as of December 31, 2011, were (in millions):


	Leveraged Leases		Finance Leases		Operating Leases		Total
2012	$	18.1	$	38.0	$	745.5	$	801.6
2013		0.3		38.0		544.9		583.2
2014		0.4		36.9		385.2		422.5
2015		0.3		33.2		290.0		323.5
2016		—		28.9		188.8		217.7
Years thereafter		79.3		166.4		362.1		607.8

	$	98.4	$	341.4	$	2,516.5	$	2,956.3

The following information pertains to GATX as a lessee:

Capital Lease Assets — Assets that are financed with capital lease obligations as of December 31 were (in millions):


	2011			2010
Railcars	$	3.6		$	22.2
Marine vessels		79.0			107.0

		82.6			129.2
Less: allowance for depreciation		(67.7	)		(88.8	)

	$	14.9		$	40.4

Lease Obligations — Certain leases provide options for GATX to renew the leases or purchase the assets at the end of the lease term. The specific terms of the renewal and purchase options vary. These amounts are not included with future minimum rental payments. Future minimum rental payments due under noncancelable leases as of December 31, 2011, were (in millions):


	Capital Leases			Recourse Operating Leases(a)		Nonrecourse Operating Leases(b)
2012	$	3.8		$	112.3	$	27.9
2013		3.1			104.6		28.3
2014		3.1			108.4		27.7
2015		3.1			126.0		26.3
2016		2.7			88.5		22.1
Years thereafter		1.1			427.0		98.9

		16.9		$	966.8	$	231.2

Less: amounts representing interest		(2.6	)

Present value of future minimum capital lease payments	$	14.3

(a)	The future minimum rental payments due under recourse operating leases were reduced by $1.6 million of minimum sublease rentals to be received in the future. The minimum rental payments do not include the costs of licenses, taxes, insurance, and maintenance, for which GATX is required to pay.

(b)	The amounts shown for nonrecourse operating leases primarily reflect the rental payments of two wholly-owned bankruptcy remote, special-purpose corporations. These rentals are consolidated for accounting purposes, but do not represent legal obligations of GATX.

(c)	Total operating lease expense, which includes amounts recorded in SG&A, was $137.3 million, $145.4 million and $141.7 million, in 2011, 2010 and 2009, respectively.