Investments in Affiliated Companies

12 Months Ended

Dec. 31, 2011

Investments in Affiliated Companies [Abstract]

Investments in Affiliated Companies

NOTE 6.    Investments in Affiliated Companies

Investments in affiliated companies represent investments in, and loans to domestic and foreign companies and joint ventures that are in businesses similar to those of GATX, such as lease financing and related services for customers operating rail, marine and industrial equipment assets, as well as other business activities, including ventures that provide asset residual value guarantees. At December 31, 2011 and 2010, these investments included loans to affiliated companies of $57.7 million and $47.7 million, respectively. Cash distributions received from affiliates were $35.3 million, $54.7 million and $36.0 million in 2011, 2010 and 2009, respectively.

In 2011, the Clipper Entities marine joint ventures, in each of which GATX held a 45% interest, were dissolved. In connection with the dissolutions, GATX contributed $62.1 million, representing its share of the Clipper Entities’ outstanding debt, and received liquidating distributions consisting of six vessels with an aggregate fair value of $88.8 million. GATX recognized an impairment loss of $5.2 million as a result of the transfer, which is reflected in share of affiliates’ earnings.

The following table shows GATX’s investments in affiliated companies by segment as of December 31 (in millions):

	2011		2010
Rail	$	142.2	$	141.0
Portfolio Management		371.6		345.1
	$	513.8	$	486.1

The table below provides detail on the five largest investments in affiliates as of December 31, 2011 ($ in millions):

	Segment	GATX’s Investment		GATX’s Percentage Ownership
Rolls-Royce & Partners Finance(a)	Portfolio Management	$	179.6		50.0	%
AAE Cargo AG	Rail		85.4		37.5	%
Enerven Compression, LLC	Portfolio Management		49.3		45.6	%
Cardinal Marine Investments, LLC	Portfolio Management		48.3		50.0	%
Adler Funding, LLC	Rail		35.2		12.5	%

(a) Combined investment balances of thirteen separate joint ventures

The following table shows GATX’s pre-tax share of affiliates’ earnings by segment for the years ending December 31 (in millions):

	2011		2010		2009
Rail	$	4.4	$	1.2	$	(10.1	)
Portfolio Management		36.2		36.9		39.1
	$	40.6	$	38.1	$	29.0

Operating results for all affiliated companies, assuming GATX held a 100% interest, for the years ending December 31 were (in millions):

	2011		2010		2009
Revenues	$	646.5	$	621.2	$	636.5
Pre-tax income reported by affiliates		93.7		71.0		57.2

Summarized balance sheet data for all affiliated companies, assuming GATX held a 100% interest, as of December 31 were (in millions):

	2011		2010
Total assets	$	5,085.3	$	5,052.6
Long-term liabilities		2,939.4		3,163.4
Other liabilities		1,257.7		1,017.3
Shareholders’ equity		888.2		871.9

The following guarantees, as described in Note 14, related to affiliated companies were outstanding as of December 31 (in millions):

	2011		2010
Lease and loan payment guarantees	$	42.0	$	30.0
Asset residual value guarantees		—		13.8