Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | GATX Corporation |
Entity Central Index Key | 40,211 |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2017 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 38,311,330 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and Cash Equivalents | $ 199.2 | $ 307.5 |
Restricted Cash | 3.7 | 3.6 |
Receivables | ||
Rent and other receivables | 83.2 | 85.9 |
Finance leases | 139.1 | 147.7 |
Less: allowance for losses | (6.5) | (6.1) |
Receivables, net | 215.8 | 227.5 |
Operating Assets and Facilities | ||
Operating Assets and Facilities | 8,915.9 | 8,446.4 |
Less: allowance for depreciation | (2,814.6) | (2,641.7) |
Operating assets and facilities, net | 6,101.3 | 5,804.7 |
Investments in Affiliated Companies | 449.3 | 387 |
Goodwill | 84.6 | 78 |
Other Assets | 208 | 297.1 |
Total Assets | 7,261.9 | 7,105.4 |
Liabilities and Shareholders’ Equity | ||
Accounts Payable and Accrued Expenses | 133.8 | 174.8 |
Debt | ||
Commercial paper and borrowings under bank credit facilities | 15.7 | 3.8 |
Recourse | 4,266.7 | 4,253.2 |
Capital lease obligations | 12.8 | 14.9 |
Total Debt | 4,295.2 | 4,271.9 |
Deferred Income Taxes | 1,157.7 | 1,089.4 |
Other Liabilities | 205 | 222.1 |
Total Liabilities | 5,791.7 | 5,758.2 |
Shareholders’ Equity | ||
Common stock, $0.625 par value: Authorized shares — 120,000,000 Issued shares — 67,071,263 and 66,953,606 Outstanding shares — 38,311,330 and 39,442,893 | 41.6 | 41.5 |
Additional paid in capital | 695.8 | 687.8 |
Retained Earnings (Accumulated Deficit) | 1,936.2 | 1,828 |
Accumulated other comprehensive loss | (129.4) | (211.1) |
Treasury stock at cost (28,759,933 and 27,510,713 shares) | (1,074) | (999) |
Total Shareholders’ Equity | 1,470.2 | 1,347.2 |
Total Liabilities and Shareholders’ Equity | $ 7,261.9 | $ 7,105.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Sep. 30, 2017$ / sharesshares |
Statement of Financial Position [Abstract] | |
Common stock, par value | $ / shares | $ 0.625 |
Common stock, shares authorized | 120,000,000 |
Common stock, shares issued | 67,071,263 |
Common stock, shares outstanding | 38,311,330 |
Treasury stock, shares outstanding | 28,759,933 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | ||||
Lease revenue | $ 276.6 | $ 281.8 | $ 823.4 | $ 847.5 |
Marine operating revenue | 62.9 | 62.1 | 135 | 139.7 |
Other revenue | 20.1 | 19 | 65.7 | 69 |
Total Revenues | 359.6 | 362.9 | 1,024.1 | 1,056.2 |
Expenses | ||||
Maintenance expense | 84.9 | 79.6 | 247.7 | 244.6 |
Marine operating expense | 38.9 | 39.2 | 89.8 | 88.9 |
Depreciation | 78.6 | 75.9 | 227.9 | 221 |
Operating lease expense | 15.8 | 19.2 | 46.8 | 54.5 |
Other operating expense | 8.5 | 10.1 | 25.9 | 33.7 |
Selling, general and administrative | 42.8 | 48.1 | 128.8 | 127.8 |
Total Expenses | 269.5 | 272.1 | 766.9 | 770.5 |
Other Income (Expense) | ||||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | 9.4 | 62.7 | 56.3 | 122.8 |
Interest expense, net | (40.2) | (36.2) | (119.4) | (109.9) |
Other (expense) income | (2.1) | 4.3 | (4.5) | (2.9) |
Income before Income Taxes and Share of Affiliates’ Earnings | 57.2 | 121.6 | 189.6 | 295.7 |
Income Taxes | (20.4) | (41.1) | (60.3) | (98.6) |
Share of Affiliates’ Earnings (net of tax) | 12.2 | 15.2 | 30.6 | 29.1 |
Net Income | 49 | 95.7 | 159.9 | 226.2 |
Other Comprehensive Income, net of taxes | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 15.4 | 11 | 74 | 16.2 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | 1.3 | 0 | 1.6 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 0.7 | 0.5 | 3.6 | (6.8) |
Post-retirement benefit plans | 1.4 | (6) | 4.1 | (3.3) |
Other comprehensive income (loss) | 17.5 | 6.8 | 81.7 | 7.7 |
Comprehensive Income | $ 66.5 | $ 102.5 | $ 241.6 | $ 233.9 |
Share Data | ||||
Earnings Per Share, Basic | $ 1.27 | $ 2.39 | $ 4.10 | $ 5.55 |
Average number of common shares (in shares) | 38.6 | 40.1 | 39 | 40.7 |
Earnings Per Share, Diluted | $ 1.25 | $ 2.36 | $ 4.04 | $ 5.49 |
Average number of common shares and common share equivalents (in shares) | 39.2 | 40.6 | 39.6 | 41.2 |
Dividends declared per common share (in dollars per share) | $ 0.42 | $ 0.40 | $ 1.26 | $ 1.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Activities | ||
Net income | $ 159.9 | $ 226.2 |
Adjustments to reconcile income to net cash provided by operating activities: | ||
Depreciation | 238.5 | 230.6 |
Change in accrued operating lease expense | (21.2) | (11) |
Gains on sales of assets | (48.4) | (41.3) |
Deferred income taxes | 44.8 | 83.6 |
Change in income taxes payable | (4.9) | (8.1) |
Share of affiliates’ earnings, net of dividends | (22) | (29) |
Other | (29.2) | (15.5) |
Net cash provided by operating activities | 317.5 | 435.5 |
Investing Activities | ||
Additions to operating assets and facilities | (422.4) | (442.6) |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | (36.6) | 0 |
Payments to Acquire Investments and Property, Plant, and Equipment | (459) | (442.6) |
Purchases of leased-in assets | (93.2) | (116.5) |
Portfolio proceeds | 131 | 170.6 |
Proceeds from sales of other assets | 24.3 | 18.6 |
Sale Leaseback Transaction, Net Proceeds, Investing Activities | 90.6 | 82.5 |
Net Cash Provided by (Used in) Investing Activities | 306.3 | 287.4 |
Financing Activities | ||
Net proceeds from issuances of debt (original maturities longer than 90 days) | 297.5 | 801.8 |
Repayments of debt (original maturities longer than 90 days) | (301.5) | (798.7) |
Net increase (decrease) in debt with original maturities of 90 days or less | 11.1 | (2.5) |
Stock repurchases | (75) | (95.1) |
Dividends | (51.8) | (51.2) |
Other | (2.8) | (6) |
Net cash (used in) provided by financing activities | (122.5) | (151.7) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 3.1 | (0.2) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (108.2) | (3.8) |
Cash, Cash Equivalents, and Restricted Cash at beginning of period | 311.1 | 219.7 |
Cash, Cash Equivalents, and Restricted Cash at end of period | $ 202.9 | $ 215.9 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business As used herein, "GATX," "we," "us," "our," and similar terms refer to GATX Corporation and its subsidiaries, unless indicated otherwise. We lease, operate, manage, and remarket long-lived, widely-used assets, primarily in the rail market. We report our financial results through four primary business segments: Rail North America, Rail International, American Steamship Company (“ASC”), and Portfolio Management. |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | NOTE 2 . Basis of Presentation We prepared the accompanying unaudited consolidated financial statements in accordance with US Generally Accepted Accounting Principles ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, our unaudited consolidated financial statements do not include all of the information and footnotes required for complete financial statements. We have included all of the normal recurring adjustments that we deemed necessary for a fair presentation. Operating results for the nine months ended September 30, 2017 , are not necessarily indicative of the results we may achieve for the entire year ending December 31, 2017. In particular, ASC's fleet is inactive for a significant portion of the first quarter of each year due to winter conditions on the Great Lakes. In addition, asset remarketing income does not occur evenly throughout the year. For more information, refer to the consolidated financial statements and footnotes in our Annual Report on Form 10-K for the year ended December 31, 2016. New Accounting Pronouncements Adopted Equity Method and Joint Ventures In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting , which eliminates the requirement to retrospectively apply equity method accounting when an entity increases ownership or influence in a previously held investment. The new guidance was effective for us in the first quarter of 2017. Application of the new guidance did not impact our financial statements or related disclosures. Stock Compensation In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies and clarifies certain aspects of share-based payments accounting and presentation. The update requires recognition of excess tax benefits and tax deficiencies, which arise due to differences between the measure of compensation expense and the amount deductible for tax purposes, to be recorded directly through earnings as a component of income tax expense. Previously, these differences were generally recorded in additional paid-in capital and thus had no impact on net income. The change in treatment of excess tax benefits and tax deficiencies also impacts the computation of diluted earnings per share, and the cash flows associated with those items are classified as operating activities on the consolidated statements of cash flows. The guidance also clarifies that all cash payments made to taxing authorities on the employees' behalf for withheld shares should be classified as financing activities on the consolidated statements of cash flows. Additionally, the guidance permits entities to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated as of the initial valuation date, as allowed under the previous guidance, or recognized when they occur. We changed our accounting policy to recognize forfeitures when they occur as part of this adoption. These amendments became effective in the first quarter of 2017, and we adopted this guidance as of January 1, 2017. Adoption of this new standard did not have a material impact on our financial statements or related disclosures. Statement of Cash Flows In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies the classification and presentation of changes in restricted cash on the statement of cash flows. We elected to early adopt the new guidance as of January 1, 2017, using the retrospective method. Application of the new guidance requires presentation of restricted cash together with cash and cash equivalents on the consolidated statements of cash flows and eliminates the disclosure of the related changes in restricted cash within investing activities. New Accounting Pronouncements Not Yet Adopted Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes most current revenue recognition guidance, including industry-specific guidance. Subsequently, the FASB has issued updates which provide additional implementation guidance. The new guidance requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The FASB delayed the effective date of this guidance to the first quarter of 2018, with early adoption permitted as of the original effective date of the first quarter of 2017. We plan to adopt this guidance as of January 1, 2018, using the modified retrospective approach. Our primary source of revenue is lease revenue, which will continue to be within the scope of existing lease accounting guidance upon adoption of Topic 606. We have substantially completed our review of all other revenue sources in scope for the new standard and have concluded the new guidance will not have a material impact on our financial statements. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which supersedes most current lease guidance. The new guidance requires companies to recognize most leases on the balance sheet and modifies accounting, presentation, and disclosure for both lessors and lessees. The new guidance is effective for us in the first quarter of 2019, with early adoption permitted. We plan to adopt this guidance on January 1, 2019, using a modified retrospective transition method, and we expect to utilize the package of three optional practical expedients as provided in the standard. We continue to assess the effect the new guidance will have on our consolidated financial statements and related disclosures. Financial Instruments In January 2016, the FASB issued ASU 2016-01 , Financial Instruments - Overall (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities, which modifies the accounting and reporting requirements for certain equity securities and financial liabilities. The new guidance is effective for us beginning in the first quarter of 2018, with certain provisions eligible for early adoption. We do not expect the new guidance to have a significant impact on our financial statements or related disclosures. Credit Losses In June 2016, the FASB issued ASU 2016-13, Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which modifies how entities will measure credit losses. The new guidance is effective for us in the first quarter of 2020, with early adoption permitted. We are evaluating the effect the new guidance will have on our financial statements and related disclosures. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which clarifies the classification of certain cash receipts and payments in the statement of cash flows. The new guidance is effective for us in the first quarter of 2018, with early adoption permitted. We do not expect the new guidance to have a significant impact on our financial statements or related disclosures. Income Taxes In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which modifies how an entity will recognize the income tax consequences of an intra-entity transfer of an asset when the transfer occurs. The new guidance is effective for us in the first quarter of 2018, with early adoption permitted. We plan to adopt this guidance on January 1, 2018, applying the retrospective method. We do not expect the new guidance to have a material impact on our financial statements and related disclosures. Compensation In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which modifies how an entity must present service costs and other components of net benefit cost. The new guidance is effective for us in the first quarter of 2018, with early adoption permitted. We plan to adopt this guidance on January 1, 2018, applying the retrospective method. We do not expect the new guidance to have a significant impact on our financial statements and related disclosures. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The update to the standard is effective for us beginning in the first quarter of 2019, with early adoption permitted in any interim period. We do not expect the new guidance to have a significant impact on our financial statements or related disclosures. |
Fair Value Disclosure
Fair Value Disclosure | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosure | Fair Value Disclosure The following tables show our assets and liabilities that are measured at fair value on a recurring basis (in millions): Assets Total September 30 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest rate derivatives (1) $ 0.1 $ — $ 0.1 $ — Foreign exchange rate derivatives (1) 2.6 — 2.6 — Foreign exchange rate derivatives (2) 0.3 — 0.3 — Liabilities Interest rate derivatives (1) 0.9 — 0.9 — Foreign exchange rate derivatives (1) 22.8 — 22.8 — Foreign exchange rate derivatives (2) 2.9 — 2.9 — Assets Total December 31 2016 Quoted Significant Observable Inputs Significant Unobservable Interest rate derivatives (1) $ 2.9 $ — $ 2.9 $ — Foreign exchange rate derivatives (1) 12.2 — 12.2 — Foreign exchange rate derivatives (2) 1.3 — 1.3 — Liabilities Interest rate derivatives (1) 0.1 — 0.1 — _________ (1) Designated as hedges. (2) Not designated as hedges. We value derivatives using a pricing model with inputs (such as yield curves and foreign currency rates) that are observable in the market or that can be derived principally from observable market data. Derivative instruments Fair Value Hedges We use interest rate swaps to manage the fixed-to-floating rate mix of our debt obligations by converting the fixed rate debt to floating rate debt. For fair value hedges, we recognize changes in fair value of both the derivative and the hedged item as interest expense. We had eight instruments outstanding with an aggregate notional amount of $450.0 million as of September 30, 2017 that mature from 2018 to 2022 and eight instruments outstanding with an aggregate notional amount of $550.0 million as of December 31, 2016 with maturities ranging from 2017 to 2020. Cash Flow Hedges We use interest rate swaps to convert floating rate debt to fixed rate debt. We use Treasury rate locks and swap rate locks to hedge our exposure to interest rate risk on anticipated transactions. We also use currency swaps to hedge our exposure to fluctuations in the exchange rates of the foreign currencies in which we conduct business. We had eleven instruments outstanding with an aggregate notional amount of $290.2 million as of September 30, 2017 that mature from 2017 to 2022 and nine instruments outstanding with an aggregate notional amount of $412.1 million as of December 31, 2016 with maturities ranging from 2017 to 2022. Within the next 12 months, we expect to reclassify $5.2 million ( $3.3 million after-tax) of net losses on previously terminated derivatives from accumulated other comprehensive income (loss) to interest expense or operating lease expense, as applicable. We reclassify these amounts when interest and operating lease expense on the related hedged transactions affect earnings. Non-designated Derivatives We do not hold derivative financial instruments for purposes other than hedging, although certain of our derivatives are not designated as accounting hedges. We recognize changes in the fair value of these derivatives in other (income) expense immediately. Some of our derivative instruments contain credit risk provisions that could require us to make immediate payment on net liability positions in the event that we default on certain outstanding debt obligations. The aggregate fair value of our derivative instruments with credit risk related contingent features that are in a liability position as of September 30, 2017 , was $23.7 million . We are not required to post any collateral on our derivative instruments and do not expect the credit risk provisions to be triggered. In the event that a counterparty fails to meet the terms of an interest rate swap agreement or a foreign exchange contract, our exposure is limited to the fair value of the swap, if in our favor. We manage the credit risk of counterparties by transacting with institutions that we consider financially sound and by avoiding concentrations of risk with a single counterparty. We believe that the risk of non-performance by any of our counterparties is remote. The following table shows the impacts of our derivative instruments on our statement of comprehensive income (in millions): Three Months Ended Nine Months Ended Derivative Designation Location of Loss (Gain) Recognized 2017 2016 2017 2016 Fair value hedges (1) Interest expense $ 0.6 $ 2.6 $ 1.5 $ (3.3 ) Cash flow hedges Other comprehensive (income) loss (effective portion) (11.1 ) (2.8 ) (34.8 ) (26.8 ) Cash flow hedges Interest expense (effective portion reclassified from accumulated other comprehensive loss) 1.7 1.7 5.1 5.1 Cash flow hedges Operating lease expense (effective portion reclassified from accumulated other comprehensive loss) — 0.7 — 1.1 Cash flow hedges (2) Other (income) expense (effective portion reclassified from accumulated other comprehensive loss) 10.1 3.3 33.8 13.6 Non-designated Other (income) expense (2.0 ) 2.2 4.1 (0.1 ) _________ (1) The fair value adjustments related to the underlying debt equally offset the amounts recognized in interest expense. (2) Includes (income) expense on foreign currency derivatives that are substantially offset by foreign currency remeasurement adjustments on related hedged instruments, also recognized in Other (income) expense. Other Financial Instruments The carrying amounts of cash and cash equivalents, restricted cash, rent and other receivables, accounts payable, and commercial paper and bank credit facilities approximate fair value due to the short maturity of those instruments. We base the fair values of investment funds, which are accounted for under the cost method, on the best information available, which may include quoted investment fund values. We estimate the fair values of loans and fixed and floating rate debt using discounted cash flow analyses that are based on interest rates currently offered for loans with similar terms to borrowers of similar credit quality. The inputs we use to estimate each of these values are classified in Level 2 of the fair value hierarchy because they are directly or indirectly observable inputs. The following table shows the carrying amounts and fair values of our other financial instruments (in millions): September 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Assets Investment funds $ 0.6 $ 1.2 $ 0.6 $ 1.2 Loans 0.2 0.2 6.2 6.2 Liabilities Recourse fixed rate debt $ 3,864.6 $ 3,977.6 $ 3,858.5 $ 3,852.6 Recourse floating rate debt 425.0 429.4 417.8 412.2 |
Assets Held for Sale (Notes)
Assets Held for Sale (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Assets Held for Sale | Assets Held for Sale The following table summarizes our assets held for sale (in millions): September 30 December 31 2017 2016 Rail North America $ 4.4 $ 43.9 Portfolio Management 19.2 45.6 $ 23.6 $ 89.5 For assets classified as held for sale, in the first nine months of 2017, we sold inland marine assets in the Portfolio Management segment with a carrying value of $26.4 million for proceeds of $28.2 million , resulting in a net gain of $1.8 million . At Rail North America, we sold certain railcars with a carrying value of $21.8 million for proceeds of $49.9 million , resulting in a net gain of $28.1 million . In addition, other railcars that were not sold with a carrying value of $19.7 million were reclassified out of assets held for sale and written down to their estimated fair value, resulting in the recognition of a $1.9 million impairment loss. All assets classified as held for sale at September 30 are expected to be sold in 2017. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefits | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Pension and Other Post-Retirement Benefits | The following table shows components of our pension and other post-retirement benefits expense for the three months ended September 30, 2017 and 2016 (in millions): 2017 Pension 2016 Pension 2017 Retiree 2016 Retiree Service cost $ 1.6 $ 1.5 $ — $ 0.1 Interest cost 3.8 3.9 0.2 0.2 Expected return on plan assets (5.9 ) (6.5 ) — — Settlement expense — 5.7 — — Amortization of (1): Unrecognized prior service credit — (0.2 ) — (0.1 ) Unrecognized net actuarial loss 2.2 2.6 — — Net expense $ 1.7 $ 7.0 $ 0.2 $ 0.2 The following table shows components of our pension and other post-retirement benefits expense for the nine months ended September 30, 2017 and 2016 (in millions): 2017 Pension 2016 Pension 2017 Retiree 2016 Retiree Service cost $ 4.9 $ 4.5 $ 0.1 $ 0.2 Interest cost 11.5 11.8 0.7 0.7 Expected return on plan assets (17.9 ) (19.5 ) — — Settlement expense 0.1 5.7 — — Amortization of (1): Unrecognized prior service credit — (0.7 ) (0.1 ) (0.2 ) Unrecognized net actuarial loss (gain) 6.9 7.7 (0.2 ) (0.2 ) Net expense $ 5.5 $ 9.5 $ 0.5 $ 0.5 ________ (1) Amounts reclassified from accumulated other comprehensive loss. During the third quarter of 2016, we recorded a settlement accounting adjustment of $5.7 million attributable to lump sum payments elected by eligible retirees as part of a voluntary early retirement program offered in 2015. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation During the nine months ended September 30, 2017 , we granted eligible incentive plan participants the aggregate of 354,400 non-qualified employee stock options, 49,840 restricted stock units, 63,710 performance shares, and 18,080 phantom stock units. For the three months and nine months ended September 30, 2017 , total share-based compensation expense was $ 3.4 million and $10.6 million and the related tax benefits were $ 1.3 million and $4.1 million . For the three months and nine months ended September 30, 2016 , total share-based compensation expense was $3.2 million and $9.1 million and the related tax benefits were $1.3 million and $3.5 million . The estimated fair value of our 2017 stock option awards and related underlying assumptions are shown in the table below. 2017 Estimated fair value, including present value of dividends $ 19.40 Quarterly dividend rate $ 0.42 Expected term of stock option awards, in years 4.7 Risk-free interest rate 1.9 % Dividend yield 2.8 % Expected stock price volatility 27.7 % Present value of dividends $ 7.50 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Our effective tax rate was 32% for the nine months ended September 30, 2017 , compared to 33% for the nine months ended September 30, 2016 . The difference in the effective rates for the current year compared to prior year is primarily attributable to the mix of pre-tax income among domestic and foreign jurisdictions which are taxed at different rates. Additionally, during the quarter, based upon the status of our current state income tax audits and our expectations of the ultimate resolution, we released the remaining balance of our liability for unrecognized tax benefits and recognized an income tax benefit of $4.3 million ( $2.8 million , net of federal tax). Also, our consolidated state income tax rate increased, effective July 1, 2017, due to legislation enacted in the state of Illinois. Accordingly, we recorded a deferred state income tax adjustment of $3.1 million in the quarter. Finally, the 2017 effective tax rate reflects incremental benefits associated with equity awards in accordance with the adoption of new accounting rules and the impact of reductions in the statutory tax rates in Quebec and Saskatchewan, Canada and India, partially offset by an increase to the effective tax rate in Germany. |
Commercial Commitments
Commercial Commitments | 9 Months Ended |
Sep. 30, 2017 | |
Guarantees [Abstract] | |
Commercial Commitments | We have entered into various commercial commitments, such as guarantees, standby letters of credit, and performance bonds, related to certain transactions. These commercial commitments require us to fulfill specific obligations in the event of third-party demands. Similar to our balance sheet investments, these commitments expose us to credit, market, and equipment risk. Accordingly, we evaluate these commitments and other contingent obligations using techniques similar to those we use to evaluate funded transactions. The following table shows our commercial commitments (in millions): September 30 December 31 2017 2016 Lease payment guarantees $ 7.6 $ 15.0 Standby letters of credit and performance bonds 8.8 8.9 Total commercial commitments (1) $ 16.4 $ 23.9 _______ (1) The carrying value of liabilities on the balance sheet for commercial commitments was $2.3 million at September 30, 2017 and $3.0 million at December 31, 2016 . The expirations of these commitments range from 2017 to 2023 . We are not aware of any event that would require us to satisfy any of our commitments. Lease payment guarantees are commitments to financial institutions to make lease payments for a third party in the event they default. We reduce any liability that may result from these guarantees by the value of the underlying asset or group of assets. We are also parties to standby letters of credit and performance bonds, which primarily relate to contractual obligations and general liability insurance coverages. No material claims have been made against these obligations, and no material losses are anticipated. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share We compute basic earnings per share by dividing net income available to our common shareholders by the weighted average number of shares of our common stock outstanding. We weighted shares issued or reacquired during the period for the portion of the period that they were outstanding. Our diluted earnings per share reflect the impacts of our potentially dilutive securities, which include our equity compensation awards. The following table shows the computation of our basic and diluted net income per common share (in millions, except per share amounts): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Numerator: Net income $ 49.0 $ 95.7 $ 159.9 $ 226.2 Denominator: Weighted average shares outstanding - basic 38.6 40.1 39.0 40.7 Effect of dilutive securities: Equity compensation plans 0.6 0.5 0.6 0.5 Weighted average shares outstanding - diluted 39.2 40.6 39.6 41.2 Basic earnings per share $ 1.27 $ 2.39 $ 4.10 $ 5.55 Diluted earnings per share $ 1.25 $ 2.36 $ 4.04 $ 5.49 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table shows the change in components for accumulated other comprehensive loss (in millions): Foreign Currency Translation Gain (Loss) Unrealized Gain (Loss) on Derivative Instruments Post-Retirement Benefit Plans Total Balance at December 31, 2016 (103.7 ) (20.3 ) (87.1 ) (211.1 ) Change in component 17.9 (5.1 ) — 12.8 Reclassification adjustments into earnings — 5.8 2.2 8.0 Income tax effect — 0.1 (0.9 ) (0.8 ) Balance at March 31, 2017 $ (85.8 ) $ (19.5 ) $ (85.8 ) $ (191.1 ) Change in component 40.7 (18.4 ) — 22.3 Reclassification adjustments into earnings — 21.3 2.2 23.5 Income tax effect — (0.8 ) (0.8 ) (1.6 ) Balance at June 30, 2017 $ (45.1 ) $ (17.4 ) $ (84.4 ) $ (146.9 ) Change in component 15.4 (10.5 ) — 4.9 Reclassification adjustments into earnings — 11.8 2.2 14.0 Income tax effect — (0.6 ) (0.8 ) (1.4 ) Balance at September 30, 2017 (29.7 ) (16.7 ) (83.0 ) (129.4 ) ________ See "Note 3 . Fair Value Disclosure " and "Note 5 . Pension and Other Post-Retirement Benefits " for impacts of the reclassification adjustments on the statement of comprehensive income. |
Legal Proceedings and Other Con
Legal Proceedings and Other Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings and Other Contingencies | OTE 11 . Legal Proceedings and Other Contingencies Various legal actions, claims, assessments and other contingencies arising in the ordinary course of business are pending against GATX and certain of our subsidiaries. These matters are subject to many uncertainties, and it is possible that some of these matters could ultimately be decided, resolved or settled adversely. For a full discussion of our pending legal matters, please refer to "Note 22. Legal Proceedings and Other Contingencies" of our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016. Viareggio Derailment In June 2009, a train consisting of fourteen liquefied petroleum gas (“LPG”) tank cars owned by GATX Rail Austria GmbH and its subsidiaries (collectively, “GRA”) derailed while passing through the City of Viareggio, in the province of Lucca, Italy. Five tank cars overturned and one of the overturned cars was punctured by a peg or obstacle along the side of the track, resulting in a release of LPG, which subsequently ignited. The accident resulted in multiple deaths, personal injuries and property damage. The LPG tank cars were leased to FS Logistica S.p.A., a subsidiary of the Italian state-owned railway, Ferrovie dello Stato S.p.A (the “Italian Railway”). On December 14, 2012, the prosecutors for Lucca charged the Italian Railway, GRA, and a number of their maintenance, operations, and managerial employees with various negligence-based crimes related to the accident. A trial was held in the court of Lucca and, on January 31, 2017, the court announced guilty verdicts against various Italian Railway companies, GRA, and certain of their employees. The court imposed a fine of 1.4 million Euros against GRA and prison sentences against the employees. GRA disagrees with the trial court’s ruling and believes that the evidence shows it and its employees acted diligently and in accordance with all applicable laws and regulations at all times. On October 14, 2017, GRA filed its appeal of the trial court’s ruling with the Court of Appeal in Florence (Corte d’Appello di Firenze) and, pending the final disposition of the appeal, these fines and penalties are not enforceable. With respect to civil claims, the insurers for the Italian Railway and GRA have fully settled and resolved most of the claims arising out of the accident. With respect to unsettled claims, the Lucca court ordered all convicted defendants (including various Italian Railway entities and GRA) to pay final damages or advances to the remaining 56 claimants. The amount of these awards is immaterial and GRA expects that its insurers will continue to cover most of these damages to claimants except for a small number of civil claims. GRA will continue to incur legal expenses for the criminal appeals although they are not expected to be material. We cannot predict the outcome of the appeals process and thus cannot reasonably estimate the possible amount or range of costs that may be ultimately incurred in connection with this litigation. |
Financial Data of Business Segm
Financial Data of Business Segments | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Financial Data of Business Segments | Financial Data of Business Segments The financial data presented below depicts the profitability, financial position, and capital expenditures of each of our business segments. We lease, operate, manage, and remarket long-lived, widely-used assets, primarily in the rail market. We report our financial results through four primary business segments: Rail North America, Rail International, American Steamship Company (“ASC”), and Portfolio Management. Rail North America is composed of our wholly owned operations in the United States, Canada, and Mexico, as well as an affiliate investment. Rail North America primarily provides railcars pursuant to full-service leases under which it maintains the railcars, pays ad valorem taxes and insurance, and provides other ancillary services. Rail International is composed of our wholly owned European operations ("GATX Rail Europe" or "GRE"), our wholly owned railcar leasing business in India ("Rail India"), and our wholly owned operations in Russia. GRE leases railcars to customers throughout Europe pursuant to full-service leases under which it maintains the railcars and provides value-adding services according to customer requirements. ASC operates the largest fleet of US-flagged vessels on the Great Lakes, providing waterborne transportation of dry bulk commodities such as iron ore, coal, limestone aggregates, and metallurgical limestone. Portfolio Management is composed primarily of our ownership in a group of joint ventures with Rolls-Royce plc that lease aircraft spare engines, as well as five liquefied gas carrying vessels and assorted other marine assets. In prior years, Portfolio Management generated leasing, marine operating, asset remarketing, and management fee income through a collection of diversified wholly owned assets and joint venture investments. We are in the process of disposing of the majority of the marine investments in this segment. Segment profit is an internal performance measure used by the Chief Executive Officer to assess the performance of each segment in a given period. Segment profit includes all revenues, pre-tax earnings from affiliates, and net gains on asset dispositions that are attributable to the segments, as well as expenses that management believes are directly associated with the financing, maintenance, and operation of the revenue earning assets. Segment profit excludes selling, general and administrative expenses, income taxes, and certain other amounts not allocated to the segments. These amounts are included in Other. We allocate debt balances and related interest expense to each segment based upon predetermined debt to equity leverage ratios. The leverage levels are 5:1 for Rail North America, 3:1 for Rail International, 1.5:1 for ASC, and 1:1 for Portfolio Management. We believe that by using this leverage and interest expense allocation methodology, each operating segment’s financial performance reflects appropriate risk-adjusted borrowing costs . The following tables show certain segment data for each of our business segments (in millions): Rail North America Rail International ASC Portfolio Management Other GATX Consolidated Three Months Ended September 30, 2017 Profitability Revenues Lease revenue $ 224.5 $ 50.3 $ 1.1 $ 0.7 $ — $ 276.6 Marine operating revenue — — 59.1 3.8 — 62.9 Other revenue 17.9 2.0 — 0.2 — 20.1 Total Revenues 242.4 52.3 60.2 4.7 — 359.6 Expenses Maintenance expense 66.1 11.1 7.7 — — 84.9 Marine operating expense — — 34.7 4.2 — 38.9 Depreciation expense 60.1 12.8 4.0 1.7 — 78.6 Operating lease expense 15.5 — 0.3 — — 15.8 Other operating expense 7.3 1.1 — 0.1 — 8.5 Total Expenses 149.0 25.0 46.7 6.0 — 226.7 Other Income (Expense) Net gain on asset dispositions 8.1 1.0 — 0.3 — 9.4 Interest (expense) income, net (30.5 ) (8.5 ) (1.4 ) (2.2 ) 2.4 (40.2 ) Other (expense) income (0.9 ) 0.3 — — (1.5 ) (2.1 ) Share of affiliates' pre-tax income 0.1 — — 16.0 — 16.1 Segment profit $ 70.2 $ 20.1 $ 12.1 $ 12.8 $ 0.9 116.1 Selling, general and administrative expense 42.8 Income taxes (includes $3.9 related to affiliates' earnings) 24.3 Net income $ 49.0 Net Gain on Asset Dispositions Asset Remarketing Income: Disposition gains on owned assets $ 7.5 $ 0.1 $ — $ — $ — $ 7.6 Residual sharing income 0.2 — — 0.3 — 0.5 Non-remarketing disposition gains (1) 0.4 0.9 — — — 1.3 $ 8.1 $ 1.0 $ — $ 0.3 $ — $ 9.4 Capital Expenditures Portfolio investments and capital additions $ 103.3 $ 22.9 $ 0.8 $ 36.6 $ 0.1 $ 163.7 Selected Balance Sheet Data at September 30, 2017 Investments in affiliated companies $ 9.8 $ — $ — $ 439.5 $ — $ 449.3 Identifiable assets $ 4,841.2 $ 1,290.0 $ 310.1 $ 616.8 $ 203.8 $ 7,261.9 __________ (1) Includes scrapping gains. Rail North America Rail International ASC Portfolio Management Other GATX Consolidated Three Months Ended September 30, 2016 Profitability Revenues Lease revenue $ 233.0 $ 46.6 $ 1.0 $ 1.2 $ — $ 281.8 Marine operating revenue — — 51.8 10.3 — 62.1 Other revenue 17.3 1.6 — 0.1 — 19.0 Total Revenues 250.3 48.2 52.8 11.6 — 362.9 Expenses Maintenance expense 62.8 10.7 6.1 — — 79.6 Marine operating expense — — 31.5 7.7 — 39.2 Depreciation expense 58.4 11.6 4.2 1.7 — 75.9 Operating lease expense 17.2 — 2.0 — — 19.2 Other operating expense 8.6 1.2 — 0.3 — 10.1 Total Expenses 147.0 23.5 43.8 9.7 — 224.0 Other Income (Expense) Net gain on asset dispositions 13.1 0.5 — 49.1 — 62.7 Interest (expense) income, net (27.1 ) (7.3 ) (1.1 ) (2.1 ) 1.4 (36.2 ) Other (expense) income (1.4 ) 5.5 (0.1 ) — 0.3 4.3 Share of affiliates' pre-tax (loss) income — (0.1 ) — 15.2 — 15.1 Segment profit $ 87.9 $ 23.3 $ 7.8 $ 64.1 $ 1.7 184.8 Selling, general and administrative expense 48.1 Income taxes (includes $0.1 tax benefit related to affiliates' earnings) 41.0 Net income $ 95.7 Net Gain on Asset Dispositions Asset Remarketing Income: Disposition gains on owned assets $ 11.9 $ — $ — $ (0.3 ) $ — $ 11.6 Residual sharing income 0.3 — — 49.4 — 49.7 Non-remarketing disposition gains (1) 0.9 0.5 — — — 1.4 $ 13.1 $ 0.5 $ — $ 49.1 $ — $ 62.7 Capital Expenditures Portfolio investments and capital additions $ 108.4 $ 10.8 $ — $ — $ 1.2 $ 120.4 Selected Balance Sheet Data at December 31, 2016 Investments in affiliated companies $ 10.5 $ 1.2 $ — $ 375.3 $ — $ 387.0 Identifiable assets $ 4,775.6 $ 1,128.7 $ 278.8 $ 593.5 $ 328.8 $ 7,105.4 __________ (1) Includes scrapping gains. Rail North America Rail International ASC Portfolio Management Other GATX Consolidated Nine Months Ended September 30, 2017 Profitability Revenues Lease revenue $ 677.4 $ 139.8 $ 3.1 $ 3.1 $ — $ 823.4 Marine operating revenue — — 113.2 21.8 — 135.0 Other revenue 60.0 4.7 — 1.0 — 65.7 Total Revenues 737.4 144.5 116.3 25.9 — 1,024.1 Expenses Maintenance expense 202.3 30.8 14.6 — — 247.7 Marine operating expense — — 70.6 19.2 — 89.8 Depreciation expense 178.8 35.8 8.1 5.2 — 227.9 Operating lease expense 45.3 — 1.5 — — 46.8 Other operating expense 21.7 3.5 — 0.7 — 25.9 Total Expenses 448.1 70.1 94.8 25.1 — 638.1 Other Income (Expense) Net gain on asset dispositions 42.6 2.6 — 11.1 — 56.3 Interest (expense) income, net (90.1 ) (24.5 ) (3.9 ) (6.8 ) 5.9 (119.4 ) Other (expense) income (4.1 ) (2.3 ) 0.8 2.3 (1.2 ) (4.5 ) Share of affiliates' pre-tax income (loss) 0.4 (0.1 ) — 39.9 — 40.2 Segment profit $ 238.1 $ 50.1 $ 18.4 $ 47.3 $ 4.7 358.6 Selling, general and administrative expense 128.8 Income taxes (includes $9.6 related to affiliates' earnings) 69.9 Net income $ 159.9 Net Gain on Asset Dispositions Asset Remarketing Income: Disposition gains on owned assets $ 39.5 $ 0.1 $ — $ 1.8 $ — $ 41.4 Residual sharing income 0.5 — — 9.3 — 9.8 Non-remarketing disposition gains (1) 4.5 2.5 — — — 7.0 Asset impairments (1.9 ) — — — — (1.9 ) $ 42.6 $ 2.6 $ — $ 11.1 $ — $ 56.3 Capital Expenditures Portfolio investments and capital additions $ 333.7 $ 74.7 $ 13.6 $ 36.6 $ 0.4 $ 459.0 __________ (1) Includes scrapping gains. Rail North America Rail International ASC Portfolio Management Other GATX Consolidated Nine Months Ended September 30, 2016 Profitability Revenues Lease revenue $ 703.0 $ 136.8 $ 3.1 $ 4.6 $ — $ 847.5 Marine operating revenue — — 102.3 37.4 — 139.7 Other revenue 63.5 4.8 — 0.7 — 69.0 Total Revenues 766.5 141.6 105.4 42.7 — 1,056.2 Expenses Maintenance expense 196.2 36.1 12.3 — — 244.6 Marine operating expense — — 64.0 24.9 — 88.9 Depreciation expense 173.0 34.2 8.6 5.2 — 221.0 Operating lease expense 50.6 — 4.0 — (0.1 ) 54.5 Other operating expense 25.0 3.8 — 4.9 — 33.7 Total Expenses 444.8 74.1 88.9 35.0 (0.1 ) 642.7 Other Income (Expense) Net gain on asset dispositions 36.4 1.5 — 84.9 — 122.8 Interest (expense) income, net (81.2 ) (21.9 ) (3.3 ) (6.4 ) 2.9 (109.9 ) Other (expense) income (3.8 ) 2.0 (0.3 ) — (0.8 ) (2.9 ) Share of affiliates' pre-tax income (loss) 0.3 (0.2 ) — 33.0 — 33.1 Segment profit $ 273.4 $ 48.9 $ 12.9 $ 119.2 $ 2.2 456.6 Selling, general and administrative expense 127.8 Income taxes (includes $4.0 related to affiliates' earnings) 102.6 Net income $ 226.2 Net Gain on Asset Dispositions Asset Remarketing Income: Disposition gains on owned assets $ 32.5 $ — $ — $ 4.2 $ — $ 36.7 Residual sharing income 0.7 — — 82.5 — 83.2 Non-remarketing disposition gains (1) 3.2 1.5 — — — 4.7 Asset impairments — — — (1.8 ) — (1.8 ) $ 36.4 $ 1.5 $ — $ 84.9 $ — $ 122.8 Capital Expenditures Portfolio investments and capital additions $ 366.7 $ 63.2 $ 9.1 $ — $ 3.6 $ 442.6 __________ (1) Includes scrapping gains. |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities at fair value recurring basis | The following tables show our assets and liabilities that are measured at fair value on a recurring basis (in millions): Assets Total September 30 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest rate derivatives (1) $ 0.1 $ — $ 0.1 $ — Foreign exchange rate derivatives (1) 2.6 — 2.6 — Foreign exchange rate derivatives (2) 0.3 — 0.3 — Liabilities Interest rate derivatives (1) 0.9 — 0.9 — Foreign exchange rate derivatives (1) 22.8 — 22.8 — Foreign exchange rate derivatives (2) 2.9 — 2.9 — Assets Total December 31 2016 Quoted Significant Observable Inputs Significant Unobservable Interest rate derivatives (1) $ 2.9 $ — $ 2.9 $ — Foreign exchange rate derivatives (1) 12.2 — 12.2 — Foreign exchange rate derivatives (2) 1.3 — 1.3 — Liabilities Interest rate derivatives (1) 0.1 — 0.1 — _________ (1) Designated as hedges. (2) Not designated as hedges. |
Impact of GATX's Derivative Instrument On Income Statement and Other comprehensive income (loss) | Derivative instruments Fair Value Hedges We use interest rate swaps to manage the fixed-to-floating rate mix of our debt obligations by converting the fixed rate debt to floating rate debt. For fair value hedges, we recognize changes in fair value of both the derivative and the hedged item as interest expense. We had eight instruments outstanding with an aggregate notional amount of $450.0 million as of September 30, 2017 that mature from 2018 to 2022 and eight instruments outstanding with an aggregate notional amount of $550.0 million as of December 31, 2016 with maturities ranging from 2017 to 2020. Cash Flow Hedges We use interest rate swaps to convert floating rate debt to fixed rate debt. We use Treasury rate locks and swap rate locks to hedge our exposure to interest rate risk on anticipated transactions. We also use currency swaps to hedge our exposure to fluctuations in the exchange rates of the foreign currencies in which we conduct business. We had eleven instruments outstanding with an aggregate notional amount of $290.2 million as of September 30, 2017 that mature from 2017 to 2022 and nine instruments outstanding with an aggregate notional amount of $412.1 million as of December 31, 2016 with maturities ranging from 2017 to 2022. Within the next 12 months, we expect to reclassify $5.2 million ( $3.3 million after-tax) of net losses on previously terminated derivatives from accumulated other comprehensive income (loss) to interest expense or operating lease expense, as applicable. We reclassify these amounts when interest and operating lease expense on the related hedged transactions affect earnings. Non-designated Derivatives We do not hold derivative financial instruments for purposes other than hedging, although certain of our derivatives are not designated as accounting hedges. We recognize changes in the fair value of these derivatives in other (income) expense immediately. Some of our derivative instruments contain credit risk provisions that could require us to make immediate payment on net liability positions in the event that we default on certain outstanding debt obligations. The aggregate fair value of our derivative instruments with credit risk related contingent features that are in a liability position as of September 30, 2017 , was $23.7 million . We are not required to post any collateral on our derivative instruments and do not expect the credit risk provisions to be triggered. In the event that a counterparty fails to meet the terms of an interest rate swap agreement or a foreign exchange contract, our exposure is limited to the fair value of the swap, if in our favor. We manage the credit risk of counterparties by transacting with institutions that we consider financially sound and by avoiding concentrations of risk with a single counterparty. We believe that the risk of non-performance by any of our counterparties is remote. The following table shows the impacts of our derivative instruments on our statement of comprehensive income (in millions): Three Months Ended Nine Months Ended Derivative Designation Location of Loss (Gain) Recognized 2017 2016 2017 2016 Fair value hedges (1) Interest expense $ 0.6 $ 2.6 $ 1.5 $ (3.3 ) Cash flow hedges Other comprehensive (income) loss (effective portion) (11.1 ) (2.8 ) (34.8 ) (26.8 ) Cash flow hedges Interest expense (effective portion reclassified from accumulated other comprehensive loss) 1.7 1.7 5.1 5.1 Cash flow hedges Operating lease expense (effective portion reclassified from accumulated other comprehensive loss) — 0.7 — 1.1 Cash flow hedges (2) Other (income) expense (effective portion reclassified from accumulated other comprehensive loss) 10.1 3.3 33.8 13.6 Non-designated Other (income) expense (2.0 ) 2.2 4.1 (0.1 ) _________ (1) The fair value adjustments related to the underlying debt equally offset the amounts recognized in interest expense. (2) Includes (income) expense on foreign currency derivatives that are substantially offset by foreign currency remeasurement adjustments on related hedged instruments, also recognized in Other (income) expense |
Fair Value Other Financial Instruments | The following table shows the carrying amounts and fair values of our other financial instruments (in millions): September 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Assets Investment funds $ 0.6 $ 1.2 $ 0.6 $ 1.2 Loans 0.2 0.2 6.2 6.2 Liabilities Recourse fixed rate debt $ 3,864.6 $ 3,977.6 $ 3,858.5 $ 3,852.6 Recourse floating rate debt 425.0 429.4 417.8 412.2 |
Commercial Commitments (Tables)
Commercial Commitments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Guarantees [Abstract] | |
Commercial Commitments | The following table shows our commercial commitments (in millions): September 30 December 31 2017 2016 Lease payment guarantees $ 7.6 $ 15.0 Standby letters of credit and performance bonds 8.8 8.9 Total commercial commitments (1) $ 16.4 $ 23.9 _______ (1) The carrying value of liabilities on the balance sheet for commercial commitments was $2.3 million at September 30, 2017 and $3.0 million at December 31, 2016 . The expirations of these commitments range from 2017 to 2023 . We are not aware of any event that would require us to satisfy any of our commitments. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted net income per common share | The following table shows the computation of our basic and diluted net income per common share (in millions, except per share amounts): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Numerator: Net income $ 49.0 $ 95.7 $ 159.9 $ 226.2 Denominator: Weighted average shares outstanding - basic 38.6 40.1 39.0 40.7 Effect of dilutive securities: Equity compensation plans 0.6 0.5 0.6 0.5 Weighted average shares outstanding - diluted 39.2 40.6 39.6 41.2 Basic earnings per share $ 1.27 $ 2.39 $ 4.10 $ 5.55 Diluted earnings per share $ 1.25 $ 2.36 $ 4.04 $ 5.49 |
Accumulated Other Comprehensi21
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Accumulated other comprehensive income (loss) | The following table shows the change in components for accumulated other comprehensive loss (in millions): Foreign Currency Translation Gain (Loss) Unrealized Gain (Loss) on Derivative Instruments Post-Retirement Benefit Plans Total Balance at December 31, 2016 (103.7 ) (20.3 ) (87.1 ) (211.1 ) Change in component 17.9 (5.1 ) — 12.8 Reclassification adjustments into earnings — 5.8 2.2 8.0 Income tax effect — 0.1 (0.9 ) (0.8 ) Balance at March 31, 2017 $ (85.8 ) $ (19.5 ) $ (85.8 ) $ (191.1 ) Change in component 40.7 (18.4 ) — 22.3 Reclassification adjustments into earnings — 21.3 2.2 23.5 Income tax effect — (0.8 ) (0.8 ) (1.6 ) Balance at June 30, 2017 $ (45.1 ) $ (17.4 ) $ (84.4 ) $ (146.9 ) Change in component 15.4 (10.5 ) — 4.9 Reclassification adjustments into earnings — 11.8 2.2 14.0 Income tax effect — (0.6 ) (0.8 ) (1.4 ) Balance at September 30, 2017 (29.7 ) (16.7 ) (83.0 ) (129.4 ) |
Financial Data of Business Se22
Financial Data of Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment data | The following tables show certain segment data for each of our business segments (in millions): Rail North America Rail International ASC Portfolio Management Other GATX Consolidated Three Months Ended September 30, 2017 Profitability Revenues Lease revenue $ 224.5 $ 50.3 $ 1.1 $ 0.7 $ — $ 276.6 Marine operating revenue — — 59.1 3.8 — 62.9 Other revenue 17.9 2.0 — 0.2 — 20.1 Total Revenues 242.4 52.3 60.2 4.7 — 359.6 Expenses Maintenance expense 66.1 11.1 7.7 — — 84.9 Marine operating expense — — 34.7 4.2 — 38.9 Depreciation expense 60.1 12.8 4.0 1.7 — 78.6 Operating lease expense 15.5 — 0.3 — — 15.8 Other operating expense 7.3 1.1 — 0.1 — 8.5 Total Expenses 149.0 25.0 46.7 6.0 — 226.7 Other Income (Expense) Net gain on asset dispositions 8.1 1.0 — 0.3 — 9.4 Interest (expense) income, net (30.5 ) (8.5 ) (1.4 ) (2.2 ) 2.4 (40.2 ) Other (expense) income (0.9 ) 0.3 — — (1.5 ) (2.1 ) Share of affiliates' pre-tax income 0.1 — — 16.0 — 16.1 Segment profit $ 70.2 $ 20.1 $ 12.1 $ 12.8 $ 0.9 116.1 Selling, general and administrative expense 42.8 Income taxes (includes $3.9 related to affiliates' earnings) 24.3 Net income $ 49.0 Net Gain on Asset Dispositions Asset Remarketing Income: Disposition gains on owned assets $ 7.5 $ 0.1 $ — $ — $ — $ 7.6 Residual sharing income 0.2 — — 0.3 — 0.5 Non-remarketing disposition gains (1) 0.4 0.9 — — — 1.3 $ 8.1 $ 1.0 $ — $ 0.3 $ — $ 9.4 Capital Expenditures Portfolio investments and capital additions $ 103.3 $ 22.9 $ 0.8 $ 36.6 $ 0.1 $ 163.7 Selected Balance Sheet Data at September 30, 2017 Investments in affiliated companies $ 9.8 $ — $ — $ 439.5 $ — $ 449.3 Identifiable assets $ 4,841.2 $ 1,290.0 $ 310.1 $ 616.8 $ 203.8 $ 7,261.9 __________ (1) Includes scrapping gains. Rail North America Rail International ASC Portfolio Management Other GATX Consolidated Three Months Ended September 30, 2016 Profitability Revenues Lease revenue $ 233.0 $ 46.6 $ 1.0 $ 1.2 $ — $ 281.8 Marine operating revenue — — 51.8 10.3 — 62.1 Other revenue 17.3 1.6 — 0.1 — 19.0 Total Revenues 250.3 48.2 52.8 11.6 — 362.9 Expenses Maintenance expense 62.8 10.7 6.1 — — 79.6 Marine operating expense — — 31.5 7.7 — 39.2 Depreciation expense 58.4 11.6 4.2 1.7 — 75.9 Operating lease expense 17.2 — 2.0 — — 19.2 Other operating expense 8.6 1.2 — 0.3 — 10.1 Total Expenses 147.0 23.5 43.8 9.7 — 224.0 Other Income (Expense) Net gain on asset dispositions 13.1 0.5 — 49.1 — 62.7 Interest (expense) income, net (27.1 ) (7.3 ) (1.1 ) (2.1 ) 1.4 (36.2 ) Other (expense) income (1.4 ) 5.5 (0.1 ) — 0.3 4.3 Share of affiliates' pre-tax (loss) income — (0.1 ) — 15.2 — 15.1 Segment profit $ 87.9 $ 23.3 $ 7.8 $ 64.1 $ 1.7 184.8 Selling, general and administrative expense 48.1 Income taxes (includes $0.1 tax benefit related to affiliates' earnings) 41.0 Net income $ 95.7 Net Gain on Asset Dispositions Asset Remarketing Income: Disposition gains on owned assets $ 11.9 $ — $ — $ (0.3 ) $ — $ 11.6 Residual sharing income 0.3 — — 49.4 — 49.7 Non-remarketing disposition gains (1) 0.9 0.5 — — — 1.4 $ 13.1 $ 0.5 $ — $ 49.1 $ — $ 62.7 Capital Expenditures Portfolio investments and capital additions $ 108.4 $ 10.8 $ — $ — $ 1.2 $ 120.4 Selected Balance Sheet Data at December 31, 2016 Investments in affiliated companies $ 10.5 $ 1.2 $ — $ 375.3 $ — $ 387.0 Identifiable assets $ 4,775.6 $ 1,128.7 $ 278.8 $ 593.5 $ 328.8 $ 7,105.4 __________ (1) Includes scrapping gains. Rail North America Rail International ASC Portfolio Management Other GATX Consolidated Nine Months Ended September 30, 2017 Profitability Revenues Lease revenue $ 677.4 $ 139.8 $ 3.1 $ 3.1 $ — $ 823.4 Marine operating revenue — — 113.2 21.8 — 135.0 Other revenue 60.0 4.7 — 1.0 — 65.7 Total Revenues 737.4 144.5 116.3 25.9 — 1,024.1 Expenses Maintenance expense 202.3 30.8 14.6 — — 247.7 Marine operating expense — — 70.6 19.2 — 89.8 Depreciation expense 178.8 35.8 8.1 5.2 — 227.9 Operating lease expense 45.3 — 1.5 — — 46.8 Other operating expense 21.7 3.5 — 0.7 — 25.9 Total Expenses 448.1 70.1 94.8 25.1 — 638.1 Other Income (Expense) Net gain on asset dispositions 42.6 2.6 — 11.1 — 56.3 Interest (expense) income, net (90.1 ) (24.5 ) (3.9 ) (6.8 ) 5.9 (119.4 ) Other (expense) income (4.1 ) (2.3 ) 0.8 2.3 (1.2 ) (4.5 ) Share of affiliates' pre-tax income (loss) 0.4 (0.1 ) — 39.9 — 40.2 Segment profit $ 238.1 $ 50.1 $ 18.4 $ 47.3 $ 4.7 358.6 Selling, general and administrative expense 128.8 Income taxes (includes $9.6 related to affiliates' earnings) 69.9 Net income $ 159.9 Net Gain on Asset Dispositions Asset Remarketing Income: Disposition gains on owned assets $ 39.5 $ 0.1 $ — $ 1.8 $ — $ 41.4 Residual sharing income 0.5 — — 9.3 — 9.8 Non-remarketing disposition gains (1) 4.5 2.5 — — — 7.0 Asset impairments (1.9 ) — — — — (1.9 ) $ 42.6 $ 2.6 $ — $ 11.1 $ — $ 56.3 Capital Expenditures Portfolio investments and capital additions $ 333.7 $ 74.7 $ 13.6 $ 36.6 $ 0.4 $ 459.0 __________ (1) Includes scrapping gains. Rail North America Rail International ASC Portfolio Management Other GATX Consolidated Nine Months Ended September 30, 2016 Profitability Revenues Lease revenue $ 703.0 $ 136.8 $ 3.1 $ 4.6 $ — $ 847.5 Marine operating revenue — — 102.3 37.4 — 139.7 Other revenue 63.5 4.8 — 0.7 — 69.0 Total Revenues 766.5 141.6 105.4 42.7 — 1,056.2 Expenses Maintenance expense 196.2 36.1 12.3 — — 244.6 Marine operating expense — — 64.0 24.9 — 88.9 Depreciation expense 173.0 34.2 8.6 5.2 — 221.0 Operating lease expense 50.6 — 4.0 — (0.1 ) 54.5 Other operating expense 25.0 3.8 — 4.9 — 33.7 Total Expenses 444.8 74.1 88.9 35.0 (0.1 ) 642.7 Other Income (Expense) Net gain on asset dispositions 36.4 1.5 — 84.9 — 122.8 Interest (expense) income, net (81.2 ) (21.9 ) (3.3 ) (6.4 ) 2.9 (109.9 ) Other (expense) income (3.8 ) 2.0 (0.3 ) — (0.8 ) (2.9 ) Share of affiliates' pre-tax income (loss) 0.3 (0.2 ) — 33.0 — 33.1 Segment profit $ 273.4 $ 48.9 $ 12.9 $ 119.2 $ 2.2 456.6 Selling, general and administrative expense 127.8 Income taxes (includes $4.0 related to affiliates' earnings) 102.6 Net income $ 226.2 Net Gain on Asset Dispositions Asset Remarketing Income: Disposition gains on owned assets $ 32.5 $ — $ — $ 4.2 $ — $ 36.7 Residual sharing income 0.7 — — 82.5 — 83.2 Non-remarketing disposition gains (1) 3.2 1.5 — — — 4.7 Asset impairments — — — (1.8 ) — (1.8 ) $ 36.4 $ 1.5 $ — $ 84.9 $ — $ 122.8 Capital Expenditures Portfolio investments and capital additions $ 366.7 $ 63.2 $ 9.1 $ — $ 3.6 $ 442.6 __________ (1) Includes scrapping gains. |
Description of Business (Detail
Description of Business (Details) | 9 Months Ended |
Sep. 30, 2017Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | 4 |
Accounting Changes Accounting C
Accounting Changes Accounting Changes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation, Nonproduction | $ 78.6 | $ 75.9 | $ 227.9 | $ 221 |
Significant Accounting Policies
Significant Accounting Policies (Gain on Asset Dispositions) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | ||||
Residual sharing income | $ 0.5 | $ 49.7 | $ 9.8 | $ 83.2 |
Non-remarketing disposition gains | 1.3 | 1.4 | 7 | 4.7 |
Asset impairments | 1.9 | 1.8 | ||
Net Gain on Asset Dispositions | $ (9.4) | $ (62.7) | $ (56.3) | $ (122.8) |
Debt (Details Textual)
Debt (Details Textual) $ in Millions | Sep. 30, 2017USD ($)Instrument | Dec. 31, 2016USD ($)Instrument |
Line of Credit Facility [Line Items] | ||
Other Short-term Borrowings | $ | $ 15.7 | $ 3.8 |
Fair Value Hedging [Member] | ||
Line of Credit Facility [Line Items] | ||
Derivative, Number of Instruments Held | Instrument | 8 | 8 |
Fair Value Disclosure (Details)
Fair Value Disclosure (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017USD ($)Instrument | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Instrument | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (3.3) | |||||
Derivative, Net Liability Position, Aggregate Fair Value | $ 23.7 | 23.7 | ||||
Derivative Asset, Notional Amount | 450 | 450 | $ 550 | |||
Asset Impairment Charges | 1.9 | $ 1.8 | ||||
Liabilities | ||||||
Derivative, Notional Amount | 290.2 | 290.2 | 412.1 | |||
Cash Flow Hedge Pre Tax Gain Loss to be Reclassified within Twelve Months | (5.2) | |||||
Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | ||||||
Assets | ||||||
Interest rate derivatives | [1] | 0.1 | 0.1 | 2.9 | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | [2] | 2.6 | 2.6 | 12.2 | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | [2] | 1.3 | ||||
Liabilities | ||||||
Interest rate derivatives | [1] | 0.9 | 0.9 | 0.1 | ||
Foreign Currency Fair Value Hedge Liability at Fair Value | [2] | 22.8 | 22.8 | |||
Fair Value, Measurements, Recurring [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Assets | ||||||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | [2] | 0.3 | 0.3 | |||
Liabilities | ||||||
Foreign exchange rate derivatives | [2] | (2.9) | (2.9) | |||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | ||||||
Assets | ||||||
Interest rate derivatives | [1] | 0.1 | 0.1 | 2.9 | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | [2] | 2.6 | 2.6 | |||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | [2] | 1.3 | ||||
Liabilities | ||||||
Interest rate derivatives | [1] | 0.9 | 0.9 | $ 0.1 | ||
Foreign Currency Fair Value Hedge Liability at Fair Value | [2] | $ 22.8 | $ 22.8 | |||
Cash Flow Hedging [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative, Number of Instruments Held | Instrument | 11 | 11 | 9 | |||
Other Nonoperating Income (Expense) [Member] | Cash Flow Hedging [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Effective portion reclassified from accumulated other comprehensive loss | $ 10.1 | $ 3.3 | $ 33.8 | 13.6 | ||
Other Expense [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ (2) | $ 2.2 | 4.1 | (0.1) | ||
Portfolio Management [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Asset Impairment Charges | $ 0 | $ (1.8) | ||||
[1] | (1) Designated as hedges | |||||
[2] | (2) Not designated as hedges |
Fair Value Disclosure (Details
Fair Value Disclosure (Details 1) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset Impairment Charges | $ 1.9 | $ 1.8 | |
Operating assets and facilities, net | $ 6,101.3 | $ 5,804.7 |
Fair Value Disclosure (Detail29
Fair Value Disclosure (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Interest Expense [Member] | Fair Value Hedging [Member] | |||||
Impact of GATX's Derivative Instrument on Income Statement and Other comprehensive income (loss) | |||||
Interest expense | [1] | $ 0.6 | $ 2.6 | $ 1.5 | $ (3.3) |
Interest Expense [Member] | Cash Flow Hedging [Member] | |||||
Impact of GATX's Derivative Instrument on Income Statement and Other comprehensive income (loss) | |||||
Effective portion reclassified from accumulated other comprehensive loss | 1.7 | 1.7 | 5.1 | 5.1 | |
Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | |||||
Impact of GATX's Derivative Instrument on Income Statement and Other comprehensive income (loss) | |||||
Other comprehensive loss (effective portion) | (11.1) | (2.8) | (34.8) | (26.8) | |
Operating Expense [Member] | Cash Flow Hedging [Member] | |||||
Impact of GATX's Derivative Instrument on Income Statement and Other comprehensive income (loss) | |||||
Effective portion reclassified from accumulated other comprehensive loss | 0 | 0.7 | 0 | 1.1 | |
Other Nonoperating Income (Expense) [Member] | Cash Flow Hedging [Member] | |||||
Impact of GATX's Derivative Instrument on Income Statement and Other comprehensive income (loss) | |||||
Effective portion reclassified from accumulated other comprehensive loss | 10.1 | 3.3 | 33.8 | 13.6 | |
Other Expense [Member] | Non-designated [Member] | |||||
Impact of GATX's Derivative Instrument on Income Statement and Other comprehensive income (loss) | |||||
Other expense | $ (2) | $ 2.2 | $ 4.1 | $ (0.1) | |
[1] | (1) The fair value adjustments related to the underlying debt equally offset the amounts recognized in interest expense. |
Fair Value Disclosure (Detail30
Fair Value Disclosure (Details 3) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Carrying Amount [Member] | |||||
Assets | |||||
Investment Funds | $ 0.6 | $ 0.6 | $ 0.6 | ||
Loans | 0.2 | 0.2 | 6.2 | ||
Liabilities | |||||
Recourse fixed rate debt | 3,864.6 | 3,864.6 | 3,858.5 | ||
Recourse floating rate debt | 425 | 425 | 417.8 | ||
Estimate of Fair Value Measurement [Member] | |||||
Assets | |||||
Investment Funds | 1.2 | 1.2 | 1.2 | ||
Loans | 0.2 | 0.2 | 6.2 | ||
Liabilities | |||||
Recourse fixed rate debt | 3,977.6 | 3,977.6 | 3,852.6 | ||
Recourse floating rate debt | 429.4 | 429.4 | $ 412.2 | ||
Not Designated as Hedging Instrument [Member] | Other Expense [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ (2) | $ 2.2 | $ 4.1 | $ (0.1) |
Fair Value Disclosure (Detail31
Fair Value Disclosure (Details Textual) $ in Millions | 9 Months Ended | |
Sep. 30, 2017USD ($)Instrument | Dec. 31, 2016USD ($)Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Operating assets and facilities, net | $ 6,101.3 | $ 5,804.7 |
Fair Value Disclosure (Textual) [Abstract] | ||
Derivative Asset, Notional Amount | 450 | 550 |
Derivative, Notional Amount | 290.2 | $ 412.1 |
Cash Flow Hedge Pre Tax Gain Loss to be Reclassified within Twelve Months | (5.2) | |
Expected After tax reclassification of net losses from accumulated other comprehensive income to earnings in Next Twelve Months | 3.3 | |
Aggregate fair value of all derivative instruments with Net liability position | $ 23.7 | |
Fair Value Hedging [Member] | ||
Fair Value Disclosure (Textual) [Abstract] | ||
Number of instruments, outstanding | Instrument | 8 | 8 |
Cash Flow Hedging [Member] | ||
Fair Value Disclosure (Textual) [Abstract] | ||
Number of instruments, outstanding | Instrument | 11 | 9 |
Fair Value Disclosure Fair Valu
Fair Value Disclosure Fair Value Disclosure (Tables) (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2017USD ($)Instrument | Dec. 31, 2016USD ($)Instrument | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (3.3) | |
Derivative, Notional Amount | 290.2 | $ 412.1 |
Cash Flow Hedge Pre Tax Gain Loss to be Reclassified within Twelve Months | (5.2) | |
Derivative, Net Liability Position, Aggregate Fair Value | 23.7 | |
Derivative Asset, Notional Amount | $ 450 | $ 550 |
Cash Flow Hedging [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative, Number of Instruments Held | Instrument | 11 | 9 |
Assets Held for Sale Asset Held
Assets Held for Sale Asset Held For Sale (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Long Lived Assets Held-for-sale [Line Items] | |||||
Portfolio Proceeds | $ 131 | $ 170.6 | |||
Disposition Gains on Owned Assets | $ 7.6 | $ 11.6 | 41.4 | 36.7 | |
Asset Impairment Charges | 1.9 | 1.8 | |||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 23.6 | 23.6 | $ 89.5 | ||
Portfolio Management [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Disposition Gains on Owned Assets | 0 | (0.3) | 1.8 | 4.2 | |
Asset Impairment Charges | 0 | (1.8) | |||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 19.2 | 19.2 | 45.6 | ||
Rail North America [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Disposition Gains on Owned Assets | 7.5 | $ 11.9 | 39.5 | 32.5 | |
Asset Impairment Charges | 1.9 | $ 0 | |||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | $ 4.4 | $ 4.4 | $ 43.9 | ||
Marine vessels [Member] | Portfolio Management [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Property, Plant and Equipment, Dispositions | 26.4 | ||||
Portfolio Proceeds | $ 28.2 | ||||
Railcars [Member] | Rail North America [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Property, Plant and Equipment, Dispositions | 21.8 | ||||
Portfolio Proceeds | $ 49.9 | ||||
Property, Plant and Equipment, Transfers and Changes | 19.7 | ||||
Railcars [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Disposition Gains on Owned Assets | $ 28.1 |
Pension and Other Post-Retire34
Pension and Other Post-Retirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Accumulative other comprehensive loss: | |||||||
After-tax amount recognized in accumulated other comprehensive loss | $ 83 | $ 83 | $ 84.4 | $ 85.8 | $ 87.1 | ||
Defined Benefit Pension [Member] | |||||||
Accumulative other comprehensive loss: | |||||||
Defined Benefit Plan, Interest Cost | 3.8 | $ 3.9 | 11.5 | $ 11.8 | |||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 5.9 | 6.5 | 17.9 | 19.5 | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0 | 5.7 | 0.1 | 5.7 | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 1.7 | 7 | 5.5 | 9.5 | |||
Unrecognized prior service credit | 0 | (0.2) | 0 | (0.7) | |||
Unrecognized net actuarial loss (gain) | 2.2 | 2.6 | 6.9 | 7.7 | |||
Other Postretirement Benefits Plan [Member] | |||||||
Accumulative other comprehensive loss: | |||||||
Defined Benefit Plan, Interest Cost | 0.2 | 0.2 | 0.7 | 0.7 | |||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0 | 0 | 0 | 0 | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 0.2 | 0.2 | 0.5 | 0.5 | |||
Unrecognized prior service credit | 0 | (0.1) | (0.1) | (0.2) | |||
Unrecognized net actuarial loss (gain) | $ 0 | $ 0 | $ (0.2) | $ (0.2) |
Pension and Other Post-Retire35
Pension and Other Post-Retirement Benefits (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Pension [Member] | ||||
Components of pension and other post retirement benefit costs | ||||
Service cost | $ 1.6 | $ 1.5 | $ 4.9 | $ 4.5 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Pension [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 1.6 | $ 1.5 | $ 4.9 | $ 4.5 |
Interest cost | 3.8 | 3.9 | 11.5 | 11.8 |
Expected return on plan assets | (5.9) | (6.5) | (17.9) | (19.5) |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0 | (5.7) | (0.1) | (5.7) |
Unrecognized prior service credit | 0 | (0.2) | 0 | (0.7) |
Unrecognized net actuarial loss (gain) | 2.2 | 2.6 | 6.9 | 7.7 |
Net expense | 1.7 | 7 | 5.5 | 9.5 |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0 | 0.1 | 0.1 | 0.2 |
Interest cost | 0.2 | 0.2 | 0.7 | 0.7 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Unrecognized prior service credit | 0 | (0.1) | (0.1) | (0.2) |
Unrecognized net actuarial loss (gain) | 0 | 0 | (0.2) | (0.2) |
Net expense | $ 0.2 | $ 0.2 | $ 0.5 | $ 0.5 |
Share Based Compensation - Outs
Share Based Compensation - Outstanding Options and Rights (Details) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 19.40 |
Share-based Compensation Arrangement By Share-based Payment Award, Fair Value Assumptions, Expected Dividend Payment Rate | $ 0.42 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years 8 months |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.90% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 2.80% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 27.70% |
Present Value of Dividends | $ 7.50 |
Stock Option SAR Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | (354,400) |
Share Based Compensation (Detai
Share Based Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Decrease in Income Tax Expenses Unrecognized Tax Benefits if Recognized Net of Federal Tax | $ 2.8 | $ 2.8 | ||
Share-based compensation expense | 3.4 | $ 3.2 | 10.6 | $ 9.1 |
Tax benefit from share-based compensation expense | $ 1.3 | $ 1.3 | $ 4.1 | $ 3.5 |
Stock Option SAR Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units granted during period | 354,400 | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units granted during period | 63,710 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units granted during period | 49,840 | |||
Phantom Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units granted during period | 18,080 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Decrease in Income Tax Expenses Unrecognized Tax Benefits if Recognized Net of Federal Tax | $ 2.8 | $ 2.8 | ||
Effective Income Tax Rate Reconciliation, Percent | 32.00% | 33.00% | ||
Deferred Tax Assets | ||||
Net deferred tax liabilities | 1,157.7 | $ 1,157.7 | $ 1,089.4 | |
Gross liability for unrecognized tax benefits | ||||
Effective Income Tax Rate Reconciliation, Change in State Enacted Tax Rate, Amount | $ 0 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Deferred | ||
Total deferred taxes | $ 44.8 | $ 83.6 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Summary of reasons for difference between GATX's effective income tax rate and federal statutory income tax | ||||
Income Tax Expense (Benefit) | $ 20.4 | $ 41.1 | $ 60.3 | $ 98.6 |
Effective income tax rate | 32.00% | 33.00% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Loss Carryforwards [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent | 32.00% | 33.00% |
Decrease in income tax expenses unrecognized tax benefits if recognized | $ 4.3 |
Commercial Commitments (Details
Commercial Commitments (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Current Carrying Value | $ 2.3 | $ 3 | |
Total commercial commitments | [1] | 16.4 | 23.9 |
Lease payment guarantees [Member] | |||
Guarantor Obligations [Line Items] | |||
Total commercial commitments | 7.6 | 15 | |
Standby letters of credit [Member] | |||
Guarantor Obligations [Line Items] | |||
Total commercial commitments | $ 8.8 | $ 8.9 | |
[1] | (1) The carrying value of liabilities on the balance sheet for commercial commitments was $2.3 million at September 30, 2017 and $3.0 million at December 31, 2016. The expirations of these commitments range from 2017 to 2023. We are not aware of any event that would require us to satisfy any of our commitments. |
Commercial Commitments (Detai44
Commercial Commitments (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2017 | |
Guarantees [Abstract] | ||
Amount of liability included in recorded value of the company's commitment | $ 3 | $ 2.3 |
Expiration of commitment range | 2017 to 2023 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Net income | $ 49 | $ 95.7 | $ 159.9 | $ 226.2 |
Denominator: | ||||
Denominator for basic earnings per share — weighted average shares | 38.6 | 40.1 | 39 | 40.7 |
Effect of dilutive securities: | ||||
Equity compensation plans | 0.6 | 0.5 | 0.6 | 0.5 |
Denominator for diluted earnings per share — adjusted weighted average and assumed conversion | 39.2 | 40.6 | 39.6 | 41.2 |
Basic earnings per share (in dollars per share) | $ 1.27 | $ 2.39 | $ 4.10 | $ 5.55 |
Diluted earnings per share (in dollars per share) | $ 1.25 | $ 2.36 | $ 4.04 | $ 5.49 |
Shareholders' Equity (Details T
Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Shareholders' Equity (Textual) | ||
Payments for stock repurchases | $ (75) | $ (95.1) |
Common stock, shares authorized | 120,000,000 | |
Common Stock, Par or Stated Value Per Share | $ 0.625 | |
Common stock, shares issued | 67,071,263 | |
Common stock, shares outstanding | 38,311,330 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Sep. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning Balance, Foreign Currency Translation Gain (Loss) | $ (45.1) | $ (103.7) | |||
Change in Foreign Currency Translation Gain (Loss) | 15.4 | 17.9 | $ 40.7 | ||
Foreign currency translation gain loss before reclassification adjustment into earnings | 0 | 0 | 0 | ||
Foreign Currency Translation Gain (Loss), Income tax effect | 0 | 0 | 0 | ||
Ending Balance, Foreign Currency Translation Gain (Loss) | (29.7) | (85.8) | |||
Beginning Balance, Unrealized Loss on Derivative Instruments | (17.4) | (20.3) | |||
Change in Unrealized Loss on Derivative Instruments | (10.5) | (5.1) | (18.4) | ||
Unrealized Loss on Derivative Instruments, Reclassification adjustments into earnings | 11.8 | 5.8 | 21.3 | ||
Unrealized Loss on Derivative Instruments, Income tax effect | (0.6) | 0.1 | (0.8) | ||
Ending Balance, Unrealized Loss on Derivative Instruments | (16.7) | (19.5) | |||
Beginning Balance, Post-Retirement Benefit Plans | (84.4) | (87.1) | |||
Change in Post-Retirement Benefit Plans | 0 | 0 | 0 | ||
Post-Retirement Benefit Plans, Reclassification adjustments into earnings | 2.2 | 2.2 | 2.2 | ||
Post-Retirement Benefit Plans, Income tax effect | (0.8) | (0.9) | (0.8) | ||
Ending Balance, Post-Retirement Benefit Plans | (83) | (85.8) | |||
Other Comprehensive Income Change in Component | 4.9 | 12.8 | 22.3 | ||
Reclassification adjustments into earnings, Total | 14 | 8 | 23.5 | ||
Income tax effect, Total | (1.4) | (0.8) | $ (1.6) | ||
Accumulated other comprehensive income (loss), net of tax | $ (129.4) | $ (191.1) | $ (146.9) | $ (211.1) |
Legal Proceedings and Other C48
Legal Proceedings and Other Contingencies (Details) - Viareggio [Member] € in Millions | 3 Months Ended | |
Sep. 30, 2017EUR (€)cases | Jun. 29, 2009Car | |
Loss Contingencies [Line Items] | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | € | € 1.4 | |
Loss Contingency, Pending Claims, Number | cases | 56 | |
Derailed [Member] | ||
Loss Contingencies [Line Items] | ||
Number of railars | 14 | |
Overturned [Member] | ||
Loss Contingencies [Line Items] | ||
Number of railars | 5 | |
Punctured and Ignited [Member] | ||
Loss Contingencies [Line Items] | ||
Number of railars | 1 |
Financial Data of Business Se49
Financial Data of Business Segments (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Segment | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||
Provision for Income Taxes, Equity Method Investment | $ 2.7 | $ (0.1) | $ 5.7 | $ 4 | |
Number of business segments | Segment | 4 | ||||
Profitability | |||||
Lease revenue | 276.6 | 281.8 | $ 823.4 | 847.5 | |
Marine operating revenue | 62.9 | 62.1 | 135 | 139.7 | |
Other revenue | 20.1 | 19 | 65.7 | 69 | |
Total Revenues | 359.6 | 362.9 | 1,024.1 | 1,056.2 | |
Maintenance expense | 84.9 | 79.6 | 247.7 | 244.6 | |
Marine operating expense | 38.9 | 39.2 | 89.8 | 88.9 | |
Depreciation | 78.6 | 75.9 | 227.9 | 221 | |
Operating lease expense | 15.8 | 19.2 | 46.8 | 54.5 | |
Other operating expense | 8.5 | 10.1 | 25.9 | 33.7 | |
Total Expenses | 226.7 | 224 | 638.1 | 642.7 | |
Net gain on asset dispositions | 9.4 | 62.7 | 56.3 | 122.8 | |
Interest expense, net | (40.2) | (36.2) | (119.4) | (109.9) | |
Other (expense) income | (2.1) | 4.3 | (4.5) | (2.9) | |
Share of affiliates' earnings (pre-tax) | 16.1 | 15.1 | 40.2 | 33.1 | |
Segment profit (loss) | 116.1 | 184.8 | 358.6 | 456.6 | |
SG&A | 42.8 | 48.1 | 128.8 | 127.8 | |
Income tax benefit | 20.4 | 41.1 | 60.3 | 98.6 | |
Net Income | 49 | 95.7 | 159.9 | 226.2 | |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | 9.4 | 62.7 | 56.3 | 122.8 | |
Disposition Gains on Owned Assets | 7.6 | 11.6 | 41.4 | 36.7 | |
Nonoperating Income, Residual Sharing Income | 0.5 | 49.7 | 9.8 | 83.2 | |
Nonremarketing Disposition Gain (Loss) | 1.3 | 1.4 | 7 | 4.7 | |
Asset Impairment Charges | (1.9) | (1.8) | |||
Selected Balance Sheet Data | |||||
Investments in affiliated companies | 449.3 | 449.3 | $ 387 | ||
Identifiable assets | 7,261.9 | 7,261.9 | 7,105.4 | ||
Capital Expenditures | |||||
Portfolio investments and capital additions | (163.7) | (120.4) | $ (459) | (442.6) | |
Rail North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Leverage level expressed as a ratio of recourse debt to equity | 5 | ||||
Profitability | |||||
Lease revenue | 224.5 | 233 | $ 677.4 | 703 | |
Marine operating revenue | 0 | 0 | 0 | 0 | |
Other revenue | 17.9 | 17.3 | 60 | 63.5 | |
Total Revenues | 242.4 | 250.3 | 737.4 | 766.5 | |
Maintenance expense | 66.1 | 62.8 | 202.3 | 196.2 | |
Marine operating expense | 0 | 0 | 0 | 0 | |
Depreciation | 60.1 | 58.4 | 178.8 | 173 | |
Operating lease expense | 15.5 | 17.2 | 45.3 | 50.6 | |
Other operating expense | 7.3 | 8.6 | 21.7 | 25 | |
Total Expenses | 149 | 147 | 448.1 | 444.8 | |
Net gain on asset dispositions | 8.1 | 13.1 | 42.6 | 36.4 | |
Interest expense, net | (30.5) | 27.1 | (90.1) | 81.2 | |
Other (expense) income | (0.9) | (1.4) | (4.1) | (3.8) | |
Share of affiliates' earnings (pre-tax) | 0.1 | 0 | 0.4 | 0.3 | |
Segment profit (loss) | 70.2 | 87.9 | 238.1 | 273.4 | |
Disposition Gains on Owned Assets | 7.5 | 11.9 | 39.5 | 32.5 | |
Nonoperating Income, Residual Sharing Income | 0.2 | 0.3 | 0.5 | 0.7 | |
Nonremarketing Disposition Gain (Loss) | 0.4 | 0.9 | 4.5 | 3.2 | |
Asset Impairment Charges | (1.9) | 0 | |||
Selected Balance Sheet Data | |||||
Investments in affiliated companies | 9.8 | 9.8 | 10.5 | ||
Identifiable assets | 4,841.2 | 4,841.2 | 4,775.6 | ||
Capital Expenditures | |||||
Portfolio investments and capital additions | (103.3) | (108.4) | $ (333.7) | (366.7) | |
Rail International [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Leverage level expressed as a ratio of recourse debt to equity | 3 | ||||
Profitability | |||||
Lease revenue | 50.3 | 46.6 | $ 139.8 | 136.8 | |
Marine operating revenue | 0 | 0 | 0 | 0 | |
Other revenue | 2 | 1.6 | 4.7 | 4.8 | |
Total Revenues | 52.3 | 48.2 | 144.5 | 141.6 | |
Maintenance expense | 11.1 | 10.7 | 30.8 | 36.1 | |
Marine operating expense | 0 | 0 | 0 | 0 | |
Depreciation | 12.8 | 11.6 | 35.8 | 34.2 | |
Operating lease expense | 0 | 0 | 0 | 0 | |
Other operating expense | 1.1 | 1.2 | 3.5 | 3.8 | |
Total Expenses | 25 | 23.5 | 70.1 | 74.1 | |
Net gain on asset dispositions | 1 | 0.5 | 2.6 | 1.5 | |
Interest expense, net | (8.5) | 7.3 | (24.5) | 21.9 | |
Other (expense) income | 0.3 | 5.5 | (2.3) | 2 | |
Share of affiliates' earnings (pre-tax) | 0 | (0.1) | (0.1) | (0.2) | |
Segment profit (loss) | 20.1 | 23.3 | 50.1 | 48.9 | |
Disposition Gains on Owned Assets | 0.1 | 0 | 0.1 | 0 | |
Nonoperating Income, Residual Sharing Income | 0 | 0 | 0 | 0 | |
Nonremarketing Disposition Gain (Loss) | 0.9 | 0.5 | 2.5 | 1.5 | |
Asset Impairment Charges | 0 | 0 | |||
Selected Balance Sheet Data | |||||
Investments in affiliated companies | 0 | 0 | 1.2 | ||
Identifiable assets | 1,290 | 1,290 | 1,128.7 | ||
Capital Expenditures | |||||
Portfolio investments and capital additions | (22.9) | (10.8) | $ (74.7) | (63.2) | |
ASC [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Leverage level expressed as a ratio of recourse debt to equity | 1.5 | ||||
Profitability | |||||
Lease revenue | 1.1 | 1 | $ 3.1 | 3.1 | |
Marine operating revenue | 59.1 | 51.8 | 113.2 | 102.3 | |
Other revenue | 0 | 0 | 0 | 0 | |
Total Revenues | 60.2 | 52.8 | 116.3 | 105.4 | |
Maintenance expense | 7.7 | 6.1 | 14.6 | 12.3 | |
Marine operating expense | 34.7 | 31.5 | 70.6 | 64 | |
Depreciation | 4 | 4.2 | 8.1 | 8.6 | |
Operating lease expense | 0.3 | 2 | 1.5 | 4 | |
Other operating expense | 0 | 0 | 0 | 0 | |
Total Expenses | 46.7 | 43.8 | 94.8 | 88.9 | |
Net gain on asset dispositions | 0 | 0 | 0 | 0 | |
Interest expense, net | (1.4) | 1.1 | (3.9) | 3.3 | |
Other (expense) income | 0 | (0.1) | 0.8 | (0.3) | |
Share of affiliates' earnings (pre-tax) | 0 | 0 | 0 | 0 | |
Segment profit (loss) | 12.1 | 7.8 | 18.4 | 12.9 | |
Disposition Gains on Owned Assets | 0 | 0 | 0 | 0 | |
Nonoperating Income, Residual Sharing Income | 0 | 0 | 0 | 0 | |
Nonremarketing Disposition Gain (Loss) | 0 | 0 | 0 | 0 | |
Asset Impairment Charges | 0 | 0 | |||
Selected Balance Sheet Data | |||||
Investments in affiliated companies | 0 | 0 | 0 | ||
Identifiable assets | 310.1 | 310.1 | 278.8 | ||
Capital Expenditures | |||||
Portfolio investments and capital additions | (0.8) | 0 | $ (13.6) | (9.1) | |
Portfolio Management [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Leverage level expressed as a ratio of recourse debt to equity | 1 | ||||
Profitability | |||||
Lease revenue | 0.7 | 1.2 | $ 3.1 | 4.6 | |
Marine operating revenue | 3.8 | 10.3 | 21.8 | 37.4 | |
Other revenue | 0.2 | 0.1 | 1 | 0.7 | |
Total Revenues | 4.7 | 11.6 | 25.9 | 42.7 | |
Maintenance expense | 0 | 0 | 0 | 0 | |
Marine operating expense | 4.2 | 7.7 | 19.2 | 24.9 | |
Depreciation | 1.7 | 1.7 | 5.2 | 5.2 | |
Operating lease expense | 0 | 0 | 0 | 0 | |
Other operating expense | 0.1 | 0.3 | 0.7 | 4.9 | |
Total Expenses | 6 | 9.7 | 25.1 | 35 | |
Net gain on asset dispositions | 0.3 | 49.1 | 11.1 | 84.9 | |
Interest expense, net | (2.2) | 2.1 | (6.8) | 6.4 | |
Other (expense) income | 0 | 0 | 2.3 | 0 | |
Share of affiliates' earnings (pre-tax) | 16 | 15.2 | 39.9 | 33 | |
Segment profit (loss) | 12.8 | 64.1 | 47.3 | 119.2 | |
Disposition Gains on Owned Assets | 0 | (0.3) | 1.8 | 4.2 | |
Nonoperating Income, Residual Sharing Income | 0.3 | 49.4 | 9.3 | 82.5 | |
Nonremarketing Disposition Gain (Loss) | 0 | 0 | 0 | 0 | |
Asset Impairment Charges | 0 | 1.8 | |||
Selected Balance Sheet Data | |||||
Investments in affiliated companies | 439.5 | 439.5 | 375.3 | ||
Identifiable assets | 616.8 | 616.8 | 593.5 | ||
Capital Expenditures | |||||
Portfolio investments and capital additions | (36.6) | 0 | (36.6) | 0 | |
Other [Member] | |||||
Profitability | |||||
Lease revenue | 0 | 0 | 0 | 0 | |
Marine operating revenue | 0 | 0 | 0 | 0 | |
Other revenue | 0 | 0 | 0 | 0 | |
Total Revenues | 0 | 0 | 0 | 0 | |
Maintenance expense | 0 | 0 | 0 | 0 | |
Marine operating expense | 0 | 0 | 0 | 0 | |
Depreciation | 0 | 0 | 0 | 0 | |
Operating lease expense | 0 | 0 | 0 | (0.1) | |
Other operating expense | 0 | 0 | 0 | 0 | |
Total Expenses | 0 | 0 | 0 | (0.1) | |
Net gain on asset dispositions | 0 | 0 | 0 | 0 | |
Interest expense, net | 2.4 | (1.4) | 5.9 | (2.9) | |
Other (expense) income | (1.5) | 0.3 | (1.2) | (0.8) | |
Share of affiliates' earnings (pre-tax) | 0 | 0 | 0 | 0 | |
Segment profit (loss) | 0.9 | 1.7 | 4.7 | 2.2 | |
Disposition Gains on Owned Assets | 0 | 0 | 0 | 0 | |
Nonoperating Income, Residual Sharing Income | 0 | 0 | 0 | 0 | |
Nonremarketing Disposition Gain (Loss) | 0 | 0 | 0 | 0 | |
Asset Impairment Charges | 0 | 0 | |||
Selected Balance Sheet Data | |||||
Investments in affiliated companies | 0 | 0 | 0 | ||
Identifiable assets | 203.8 | 203.8 | $ 328.8 | ||
Capital Expenditures | |||||
Portfolio investments and capital additions | (0.1) | (1.2) | (0.4) | (3.6) | |
Parent [Member] | |||||
Profitability | |||||
Income tax benefit | $ 24.3 | $ 41 | $ 69.9 | $ 102.6 |