Share-Based Compensation

9 Months Ended

Sep. 30, 2012

Share-Based Compensation

NOTE 7.         Share-Based Compensation

In the first nine months of 2012, GATX granted 350,200 stock appreciation rights (“SARs”), 63,380 restricted stock units, 76,780 performance shares and 15,420 phantom stock units. For the three and nine months ended September 30, 2012, total share-based compensation expense was $3.0 million and $9.1 million, respectively, and related tax benefits were $1.1 million and $3.4 million, respectively. For the three and nine months ended September 30, 2011, total share-based compensation expense was $2.0 million and $6.9 million, respectively, and related tax benefits were $0.8 million and $2.6 million, respectively.

The weighted average estimated fair value of GATX’s 2012 SAR awards and underlying assumptions thereof are noted in the table below. The vesting period for the 2012 SAR grant is 3 years, with 1/3 vesting after each year.

	2012
Weighted average estimated fair value	$	18.48
Quarterly dividend rate	$	0.29
Expected term of SAR, in years		4.7
Risk free interest rate		1.0	%
Dividend yield		2.7	%
Expected stock price volatility		43.3	%
Present value of dividends	$	5.37