Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The following table shows the carrying amounts of the assets and liabilities of the consolidated variable interest entity reported on our condensed consolidated balance sheet (in millions):


	March 31		December 31
	2026		2025
Cash and cash equivalents	$	13.3	$	32.2
Restricted cash	—		4,211.1
Rent and other receivables, net	58.3		—
Operating assets and facilities, net	4,146.9		—
Right of use assets, net of accumulated depreciation	6.6		—
Other assets	69.0		30.6
Total assets	$	4,294.1	$	4,273.9

Accounts payable and accrued expenses	$	38.3	$	46.8
Recourse debt (1)	2,945.3		2,942.9
Operating leases	7.0		—
Deferred income taxes	1.6		—
Other liabilities	47.5		20.4
Total liabilities	$	3,039.7	$	3,010.1

_________

(1) GABX debt is guaranteed by GATX.

GABX's assets can only be used to settle its obligations and may not be used to satisfy claims of GATX.

The following table shows the statements of income of the consolidated variable interest entity reported in our condensed consolidated statements of income (in millions):


	Three Months Ended March 31
	2026		2025
Total revenues	$	134.9	$	—
Total expenses (1)	(100.2)		—
Net gain on asset dispositions	2.0		—
Interest expense, net	(43.9)		—

Loss before Income Taxes	(7.2)		—
Income taxes (2)	(1.9)		—
Net loss	$	(9.1)	$	—

_________

(1) Amount includes $12.5 million of management fees paid to GATX in the three months ended March 31, 2026. Management fees are primarily based on the number of railcars under management and are consistent with market rates.

(2) Represents income taxes directly attributable to GABX. Certain of GABX's jurisdictions are disregarded jurisdictions for income tax purposes and, as a result, income taxes are incurred at the shareholder level.

In the three months ended March 31, 2026, significant cash flow items at GABX included $4,230.8 million of cash paid for the acquisition of operating assets, $992.0 million of net proceeds from the issuance of debt, and $992.0 million of cash paid for the repayment of debt.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

GATX CORP 10-Q