# EDGAR Filing Document

**Accession Number:** 0000040211
**File Stem:** 0000040211-23-000023
**Filing Date:** 2023-2
**Character Count:** 525523
**Document Hash:** ff98333f40ef10a4193fd6bd0ac9f585
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000040211-23-000023.hdr.sgml**: 20230216

**ACCESSION NUMBER**: 0000040211-23-000023

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 197

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230216

**DATE AS OF CHANGE**: 20230216

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** GATX CORP
- **CENTRAL INDEX KEY:** 0000040211
- **STANDARD INDUSTRIAL CLASSIFICATION:** TRANSPORTATION SERVICES [4700]
- **IRS NUMBER:** 361124040
- **STATE OF INCORPORATION:** NY
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-02328
- **FILM NUMBER:** 23638110

**BUSINESS ADDRESS:**
- **STREET 1:** 233 SOUTH WACKER DRIVE
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60606-7147
- **BUSINESS PHONE:** 3126216200

**MAIL ADDRESS:**
- **STREET 1:** 233 SOUTH WACKER DRIVE
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60606-7147

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** GENERAL AMERICAN TRANSPORTATION CORP
- **DATE OF NAME CHANGE:** 19750722

?xml version="1.0" ? gmt-20221231

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 10-K** 

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| | |
|:---|:---|
| ☑ | **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |

---

**For the fiscal year ended December 31, 2022**

**or**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**Commission File Number 1-2328**![gmt-20221231_g1.jpg](gmt-20221231_g1.jpg)

**GATX Corporation** 

*(Exact name of registrant as specified in its charter)*

---

| | |
|:---|:---|
| **New York** | **36-1124040** |
| *(State or Other Jurisdiction of incorporation or Organization)* | *(I.R.S. Employer Identification No.)* |

---

**233 South Wacker Drive** 

**Chicago**, **IL 60606-7147** 

(Address of principal executive offices, including zip code)

**(312) 621-6200** 

(Registrant's telephone number, including area code)

**Securities Registered Pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of Each Exchange on Which Registered** |
| Common Stock | GATX | New York Stock Exchange |
| | | Chicago Stock Exchange |

---

**Securities Registered Pursuant to Section 12(g) of the Act:**

**None**

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes 🗹&nbsp;&nbsp;&nbsp;&nbsp; No □

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes □&nbsp;&nbsp;&nbsp;&nbsp; No 🗹

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes 🗹&nbsp;&nbsp;&nbsp;&nbsp; No □

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes 🗹 No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Large accelerated filer | 🗹 | Accelerated filer | **☐** | Emerging growth company | **☐** |
| Non-accelerated filer  | **☐** | Smaller reporting company | **☐** | | |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.&nbsp;&nbsp;&nbsp;&nbsp;□

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes □&nbsp;&nbsp;&nbsp;&nbsp; No 🗹

The aggregate market value of the voting and non-voting stock held by non-affiliates of the registrant was approximately $3.3 billion as of June 30, 2022.

There were 35.3 million common shares outstanding at January 31, 2023.

**DOCUMENTS INCORPORATED BY REFERENCE**

GATX's definitive Proxy Statement to be filed on or about March 17, 2023 PART III

------

**GATX CORPORATION**

**2022 FORM 10-K**

**INDEX**

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| | | |
|:---|:---|:---|
| **<u>Item No.</u>** | | **<u>Page</u>** |
| | [Forward-Looking Statements](#i8abe6170fcd04ac7a9d0af157d366a7b_10) | [1](#i8abe6170fcd04ac7a9d0af157d366a7b_10) |
| **Part I** | **Part I** | **Part I** |
| Item 1. | [Business](#i8abe6170fcd04ac7a9d0af157d366a7b_16) | [2](#i8abe6170fcd04ac7a9d0af157d366a7b_16) |
| Item 1A. | [Risk Factors](#i8abe6170fcd04ac7a9d0af157d366a7b_61) | [11](#i8abe6170fcd04ac7a9d0af157d366a7b_61) |
| Item 1B. | [Unresolved Staff Comments](#i8abe6170fcd04ac7a9d0af157d366a7b_64) | [21](#i8abe6170fcd04ac7a9d0af157d366a7b_64) |
| Item 2. | [Properties](#i8abe6170fcd04ac7a9d0af157d366a7b_67) | [22](#i8abe6170fcd04ac7a9d0af157d366a7b_67) |
| Item 3. | [Legal Proceedings](#i8abe6170fcd04ac7a9d0af157d366a7b_70) | [23](#i8abe6170fcd04ac7a9d0af157d366a7b_70) |
| Item 4. | [Mine Safety Disclosures](#i8abe6170fcd04ac7a9d0af157d366a7b_73) | [23](#i8abe6170fcd04ac7a9d0af157d366a7b_73) |
| **Part II** | **Part II** | **Part II** |
| Item 5. | [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#i8abe6170fcd04ac7a9d0af157d366a7b_79) | [23](#i8abe6170fcd04ac7a9d0af157d366a7b_79) |
| Item 6. | [\[Reserved\]](#i8abe6170fcd04ac7a9d0af157d366a7b_82) | [24](#i8abe6170fcd04ac7a9d0af157d366a7b_82) |
| Item 7. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#i8abe6170fcd04ac7a9d0af157d366a7b_85) | [25](#i8abe6170fcd04ac7a9d0af157d366a7b_85) |
| | &nbsp;&nbsp;&nbsp;[Discussion of Operating Results](#i8abe6170fcd04ac7a9d0af157d366a7b_91) | [27](#i8abe6170fcd04ac7a9d0af157d366a7b_91) |
| | &nbsp;&nbsp;&nbsp;[Change in Net Operating Assets and Facilities](#i8abe6170fcd04ac7a9d0af157d366a7b_1673) | [40](#i8abe6170fcd04ac7a9d0af157d366a7b_1673) |
| | &nbsp;&nbsp;&nbsp;[Cash Flow Discussion](#i8abe6170fcd04ac7a9d0af157d366a7b_1696) | [41](#i8abe6170fcd04ac7a9d0af157d366a7b_1696) |
| | &nbsp;&nbsp;&nbsp;[Liquidity and Capital Resources](#i8abe6170fcd04ac7a9d0af157d366a7b_115) | [43](#i8abe6170fcd04ac7a9d0af157d366a7b_115) |
| | &nbsp;&nbsp;&nbsp;[Critical Accounting Policies and Estimates](#i8abe6170fcd04ac7a9d0af157d366a7b_118) | [47](#i8abe6170fcd04ac7a9d0af157d366a7b_118) |
| | &nbsp;&nbsp;&nbsp;[New Accounting Pronouncements](#i8abe6170fcd04ac7a9d0af157d366a7b_121) | [49](#i8abe6170fcd04ac7a9d0af157d366a7b_121) |
| | &nbsp;&nbsp;&nbsp;[Non-GAAP Financial Measures](#i8abe6170fcd04ac7a9d0af157d366a7b_124) | [49](#i8abe6170fcd04ac7a9d0af157d366a7b_124) |
| Item 7A. | [Quantitative and Qualitative Disclosures About Market Risk](#i8abe6170fcd04ac7a9d0af157d366a7b_127) | [52](#i8abe6170fcd04ac7a9d0af157d366a7b_127) |
| Item 8. | [Financial Statements and Supplementary Data](#i8abe6170fcd04ac7a9d0af157d366a7b_130) | [53](#i8abe6170fcd04ac7a9d0af157d366a7b_130) |
| Item 9. | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#i8abe6170fcd04ac7a9d0af157d366a7b_250) | [104](#i8abe6170fcd04ac7a9d0af157d366a7b_250) |
| Item 9A. | [Controls and Procedures](#i8abe6170fcd04ac7a9d0af157d366a7b_253) | [104](#i8abe6170fcd04ac7a9d0af157d366a7b_253) |
| Item 9B. | [Other Information](#i8abe6170fcd04ac7a9d0af157d366a7b_259) | [106](#i8abe6170fcd04ac7a9d0af157d366a7b_259) |
| Item 9C. | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#i8abe6170fcd04ac7a9d0af157d366a7b_262) | [107](#i8abe6170fcd04ac7a9d0af157d366a7b_262) |
| **Part III** | **Part III** | **Part III** |
| Item 10. | [Directors, Executive Officers and Corporate Governance](#i8abe6170fcd04ac7a9d0af157d366a7b_268) | [107](#i8abe6170fcd04ac7a9d0af157d366a7b_268) |
| Item 11. | [Executive Compensation](#i8abe6170fcd04ac7a9d0af157d366a7b_271) | [107](#i8abe6170fcd04ac7a9d0af157d366a7b_271) |
| Item 12. | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#i8abe6170fcd04ac7a9d0af157d366a7b_274) | [107](#i8abe6170fcd04ac7a9d0af157d366a7b_274) |
| Item 13. | [Certain Relationships and Related Transactions, and Director Independence](#i8abe6170fcd04ac7a9d0af157d366a7b_277) | [107](#i8abe6170fcd04ac7a9d0af157d366a7b_277) |
| Item 14. | [Principal Accountant Fees and Services](#i8abe6170fcd04ac7a9d0af157d366a7b_280) | [107](#i8abe6170fcd04ac7a9d0af157d366a7b_280) |
| **Part IV** | **Part IV** | **Part IV** |
| Item 15. | [Exhibits, Financial Statement Schedules](#i8abe6170fcd04ac7a9d0af157d366a7b_286) | [108](#i8abe6170fcd04ac7a9d0af157d366a7b_286) |
| Item 16. | [Form 10-K Summary](#i8abe6170fcd04ac7a9d0af157d366a7b_292) | [110](#i8abe6170fcd04ac7a9d0af157d366a7b_292) |
| | [Signatures](#i8abe6170fcd04ac7a9d0af157d366a7b_295) | [111](#i8abe6170fcd04ac7a9d0af157d366a7b_295) |

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**FORWARD-LOOKING STATEMENTS**

Statements in this report not based on historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and, accordingly, involve known and unknown risks and uncertainties that are difficult to predict and could cause our actual results, performance, or achievements to differ materially from those discussed. Forward-looking statements include statements as to our future expectations, beliefs, plans, strategies, objectives, events, conditions, financial performance, prospects, or future events. In some cases, forward-looking statements can be identified by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "outlook," "continue," "likely," "will," "would", and similar words and phrases. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the date they are made, and are not guarantees of future performance. We do not undertake any obligation to publicly update or revise these forward-looking statements.

The following factors, in addition to those discussed under "Risk Factors" and elsewhere in this report and in our other filings with the U.S. Securities and Exchange Commission, could cause actual results to differ materially from our current expectations expressed in forward-looking statements:

&nbsp;&nbsp;&nbsp;&nbsp;

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>• the impact of the ongoing military action between Russia and Ukraine, including sanctions and countermeasures, on domestic and global economic and geopolitical conditions in general, including supply chain challenges and disruptions <br>• the duration and effects of the global COVID-19 pandemic and measures taken in response, including adverse impacts on our operations, commercial activity, supply chain, the demand for our transportation assets, the value of our assets, our liquidity, and macroeconomic conditions<br>• exposure to damages, fines, criminal and civil penalties, and reputational harm arising from a negative outcome in litigation, including claims arising from an accident involving transportation assets<br>• inability to maintain our transportation assets on lease at satisfactory rates due to oversupply of assets in the market or other changes in supply and demand<br>• a significant decline in customer demand for our transportation assets or services, including as a result of:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ weak macroeconomic conditions or increased interest rates<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ weak market conditions in our customers' businesses<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ adverse changes in the price of, or demand for, commodities <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ changes in railroad operations, efficiency, pricing and service offerings, including those related to "precision scheduled railroading" or labor strikes or shortages<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ changes in, or disruptions to, supply chains<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ availability of pipelines, trucks, and other alternative modes of transportation<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ changes in conditions affecting the aviation industry, including reduced demand for air travel, geographic exposure and customer concentrations<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ other operational or commercial needs or decisions of our customers<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ customers' desire to buy, rather than lease, our transportation assets<br>• higher costs associated with increased assignments of our transportation assets following non-renewal of leases, customer defaults, and compliance maintenance programs or other maintenance initiatives<br>• events having an adverse impact on assets, customers, or regions where we have a concentrated investment exposure<br>• financial and operational risks associated with long-term purchase commitments for transportation assets<br>• reduced opportunities to generate asset remarketing income | <br>• inability to successfully consummate and manage ongoing acquisition and divestiture activities<br>• reliance on Rolls-Royce in connection with our aircraft spare engine leasing businesses, and the risks that certain factors that adversely affect Rolls-Royce could have an adverse effect on our businesses<br>• fluctuations in foreign exchange rates<br>• prolonged inflation or deflation<br>• inability to attract, retain, and motivate qualified personnel, including key management personnel<br>• failure to successfully negotiate collective bargaining agreements with the unions representing a substantial portion of our employees<br>• asset impairment charges we may be required to recognize<br>• deterioration of conditions in the capital markets, reductions in our credit ratings, or increases in our financing costs<br>• competitive factors in our primary markets, including competitors with significantly lower costs of capital<br>• risks related to our international operations and expansion into new geographic markets, including laws, regulations, tariffs, taxes, treaties or trade barriers affecting our activities in the countries where we do business<br>• changes in, or failure to comply with, laws, rules, and regulations<br>• U.S. and global political conditions<br>• inability to obtain cost-effective insurance <br>• environmental liabilities and remediation costs<br>• potential obsolescence of our assets<br>• inadequate allowances to cover credit losses in our portfolio<br>• operational, functional and regulatory risks associated with climate change, severe weather events and natural disasters, and other environmental, social and governance matters<br>• inability to maintain and secure our information technology infrastructure from cybersecurity threats and related disruption of our business<br>• changes in assumptions, increases in funding requirements or investment losses in our pension and post-retirement plans<br>• inability to maintain effective internal control over financial reporting and disclosure controls and procedures |

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**PART I**

**Item 1*. Business***

**GENERAL**

GATX Corporation ("GATX", "we," "us," "our," and similar terms), a New York corporation founded in 1898, is a leading global railcar lessor, owning fleets in North America, Europe, and India. In addition, including our joint venture with Rolls-Royce plc, we own one of the largest aircraft spare engine lease portfolios in the world. We report our financial results through three primary business segments: Rail North America, Rail International, and Portfolio Management. Historically, we also reported financial results for American Steamship Company ("ASC") as a fourth segment. On May 14, 2020, we completed the sale of our ASC business to Rand Logistics, Inc. As a result, ASC is now reported as discontinued operations, and financial data for the ASC segment has been segregated and presented as discontinued operations for all periods presented. See "Note 25. Discontinued Operations" in Part II, Item 8 of this Form 10-K for additional information. On December 29, 2020, GATX acquired Trifleet Leasing Holding B.V. ("Trifleet"), one of the largest tank container lessors in the world. Financial results for this business is reported in the Other segment. See "Note 4. Business Combinations" in Part II, Item 8 of this Form 10-K for additional information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

The following description of our business should be read in conjunction with the information contained in our Management's Discussion and Analysis of Financial Condition and Results of Operations included in Item 7 and the consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K.

At December 31, 2022, we had total assets of $10.1 billion, composed largely of railcars.

**OPERATIONS**

***GATX RAIL BUSINESS OVERVIEW***

Our wholly owned fleet of approximately 144,000 railcars is one of the largest railcar lease fleets in the world. We lease tank cars, freight cars, and locomotives in North America, tank cars and freight cars in Europe, freight cars in India, and until January 31, 2023, tank cars and freight cars in Russia. The following table sets forth our worldwide rail fleet data as of December 31, 2022:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Tank<br>Railcars** | **Freight<br>Railcars** | **Total Fleet** | **Managed<br>Railcars** | **Total Railcars** | **Locomotives** |
| Rail North America | 61856 | 47761 | 109617 | 288 | 109905 | 544 |
| Rail International | 22754 | 11503 | 34257 | 7 | 34264 |  |
| Total | 84610 | 59264 | 143874 | 295 | 144169 | 544 |

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Our rail customers primarily operate in the petroleum, chemical, transportation, and food/agriculture industries. Our worldwide railcar fleet consists of diverse railcar types that our customers use to ship nearly 600 different commodities. The following table presents an overview of our railcar types as well as the industries of our customers and the commodities they ship.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **General-Service Tank Cars** | **High-Pressure Tank Cars** | **Specialty Tank Cars** | **Specialty/Pneumatic Covered Hoppers** | **Gravity Covered Hoppers** | **Open-Top Cars** | **Boxcars** | **Flatcars/Intermodal Railcars** |
| **Principal Industries Served** | Petroleum/Bio-fuels | Petroleum | Chemical | Plastics | Agriculture | Energy | Food | Automotive |
| **Principal Industries Served** | Chemical | Chemical | Petroleum | Food | Energy | Steel | Consumer Goods | Manufactured Goods |
| **Principal Industries Served** | Food | | Mining | Industrial | Industrial | Construction | Forest Products | Consumer Goods |
| **Principal Industries Served** | Agriculture | | | | Construction | Forest Products | Packaging | Energy |
| **Principal Industries Served** | Construction | | | | | | Construction | Steel |
| **Principal Commodities** | Petroleum Products | Liquefied Petroleum Gas Products | Sulfuric Acid | Plastics | Fertilizer | Coal | Packaged Food and Beverages | Vehicles |
| **Principal Commodities** | Fertilizer Products | Propylene | Molten Sulfur | Flour | Grain | Metals and Related | Paper and Packaging | Packaged Goods |
| **Principal Commodities** | Ethanol/<br>Bio-fuels | Vinyl Chloride Monomer | Hydrochloric Acid | Sugar | Sand | Aggregates | Lumber and Building Products | Lumber |
| **Principal Commodities** | Edible Oils and Syrups | Miscellaneous Chemicals | Caustic Soda | Starch | Cement, Granules | Coke | Mixed Freight | Steel Products |
| **Principal Commodities** | Chemicals | | Phosphoric Acid | Carbon Black | Soda Ash | Waste | | Mixed Freight |

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![gmt-20221231_g2.jpg](gmt-20221231_g2.jpg)

***RAIL NORTH AMERICA***

Rail North America is composed of our operations in the United States, Canada, and Mexico. 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. These railcars have estimated economic useful lives of 27 to 45 years and an average age of approximately 18 years. Rail North America has a large and diverse customer base, serving approximately 860 customers. In 2022, no single customer accounted for more than 4% of Rail North America's total lease revenue, and the top ten customers combined accounted for approximately 22% of Rail North America's total lease revenue. Rail North America leases railcars for terms that generally range from one to ten years, which vary based on railcar type, lease structure, and market conditions. The average remaining lease term of the North American fleet was approximately 35 months as of December 31, 2022. Rail North America's primary competitors in railcar leasing are Union Tank Car Company, Wells Fargo Rail, CIT Rail, and Trinity Industries Leasing Company. Rail North America competes primarily on the basis of availability of railcars, maintenance capabilities, lease rate, lease structures, customer relationships, and engineering expertise.

------

Rail North America purchases new railcars from a number of manufacturers, including Trinity Rail Group, LLC ("Trinity"), a subsidiary of Trinity Industries, Inc., The Greenbrier Companies, Inc. ("Greenbrier") and its subsidiaries, National Steel Car Ltd., and FreightCar America, Inc. We also acquire railcars in the secondary market.

On September 30, 2022, we entered into a new long-term railcar supply agreement with Trinity to purchase 15,000 newly built railcars through 2028, with an option to order up to an additional 500 railcars each year from 2023 to 2028. The agreement enables us to order a broad mix of tank and freight cars. Trinity will deliver 6,000 tank cars (1,200 per year) from 2024 through 2028. The remaining 9,000 railcars, which can be a mix of freight and tank cars, will be ordered at a rate of 1,500 railcars per order year from 2023 to 2028 and delivered under a schedule to be determined. At December 31, 2022, 682 railcars have been ordered pursuant to the terms of the agreement, none of which have been delivered.

In 2018, we amended a long-term supply agreement with Trinity to extend the term to December 2023, and we agreed to purchase 4,800 tank cars (1,200 per year) beginning in January 2020 and continuing through 2023. At December 31, 2022, 4,454 railcars have been ordered pursuant to the amended terms of the agreement, of which 3,572 railcars have been delivered.

In 2018, we entered into a multi-year railcar supply agreement with American Railcar Industries, Inc. ("ARI"), pursuant to which we agreed to purchase 7,650 newly built railcars. The order encompasses a mix of tank and freight cars to be delivered over a five-year period, beginning in April 2019 and ending in December 2023. ARI's railcar manufacturing business was acquired by a subsidiary of Greenbrier on July 26, 2019, and such subsidiary assumed all of ARI's obligations under our long-term supply agreement. As of December 31, 2022, 7,650 railcars have been ordered, of which 5,795 railcars have been delivered. All railcars covered under this agreement are expected to be delivered by early 2024.

Rail North America also owns a fleet of locomotives, consisting of 501 four-axle and 43 six-axle locomotives as of December 31, 2022. Locomotive customers are primarily regional and short-line railroads and industrial users. Lease terms vary from month-to-month to ten years. As of December 31, 2022, the average remaining lease term of the locomotive fleet was approximately 32 months. Rail North America's primary competitors in locomotive leasing are Wells Fargo Rail, CIT Rail, and Progress Rail Services Corporation. Competitive factors in the market include availability of locomotives, lease rates, customer service, and maintenance.

Rail North America also sells existing railcars and the associated leases, and these remarketing activities may generate gains which could contribute significantly to Rail North America's segment profit.

**Maintenance**

Rail North America operates an extensive network of maintenance facilities in the United States and Canada dedicated to performing safe, timely, efficient, and high-quality railcar maintenance services for customers. Services include interior cleaning of railcars, routine maintenance and general repairs to the car body and safety appliances, regulatory compliance work, wheelset replacements, interior blast and lining, exterior blast and painting, and car stenciling. To the extent possible, railcar maintenance is scheduled in a manner that minimizes the amount of time the car is out of service.

At December 31, 2022, Rail North America's maintenance network consisted of:

&nbsp;&nbsp;&nbsp;&nbsp;• Six major maintenance facilities that can complete nearly all types of maintenance services.

&nbsp;&nbsp;&nbsp;&nbsp;• Two smaller maintenance facilities with more limited capabilities.

&nbsp;&nbsp;&nbsp;&nbsp;• One customer-dedicated site operating within a customer facility that offers services tailored to the needs of our customer's fleet.

&nbsp;&nbsp;&nbsp;&nbsp;• Two locations (one servicing railcars and one servicing locomotives) with mobile units that travel to field locations to provide services tailored to the needs of our customers' fleets.

The maintenance network is supplemented by a number of preferred third-party maintenance providers and railroads. In 2022, third-party maintenance network expenses accounted for approximately 18% of Rail North America's total maintenance network expenses, excluding repairs performed by the railroads. In 2022, wholly owned and third-party maintenance facilities performed approximately 30,900 service events, including multiple independent service events for the same car.

Our maintenance activities are dedicated to servicing our wholly owned railcar fleet pursuant to the provisions of our lease contracts. This may include services that are not included in the full-service lease agreement, such as repairs of railcar damage or other customer-specific requirements. Revenue earned from these types of maintenance services is recorded in other revenue. We may also perform maintenance and repair activities on cars owned by third parties.

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**Affiliates**

GATX is a co-founder of, and owns a 13.8% share in, the RailPulse LLC ("RailPulse") joint venture. GATX's partners include Norfolk Southern Railway Company, Genesee & Wyoming Inc., Trinity Industries, Inc., Watco Companies, LLC, Union Pacific Railroad Company, Railroad Development Corporation, and Greenbrier Leasing, LLC. The RailPulse joint venture was formed to create an industry-wide telematics platform to enable the use of telematics devices to gather data and enhance rail safety and the value proposition for rail shippers across North America. As of December 31, 2022, RailPulse launched its demonstration pilot and has publicly stated its intention to enter regular service in 2023. The financial results of RailPulse are not currently material to GATX.

***RAIL INTERNATIONAL***

Rail International is composed of our operations in Europe ("GATX Rail Europe" or "GRE"), India ("Rail India"), and until January 31, 2023, Russia ("Rail Russia"). GRE primarily leases railcars to customers throughout Europe pursuant to full-service leases under which it maintains the railcars and provides value-added services according to customer requirements. These railcars have estimated useful lives of 35 to 40 years and an average age of approximately 17 years. GRE has a diverse customer base with approximately 260 customers. In 2022, one customer accounted for approximately 12% of GRE's total lease revenue and the top ten customers combined accounted for approximately 48% of GRE's total lease revenue. GRE's lease terms generally range from one to ten years and as of December 31, 2022, the average remaining lease term of the European fleet was approximately 24 months. GRE's primary competitors are VTG Aktiengesellschaft, the Ermewa Group, Wascosa AG, and Touax. GRE competes principally on the basis of availability of railcars, customer relationships, lease rate, and maintenance expertise.

GRE acquires new railcars primarily from Gök Yapi San. Tic. a.s., Greenbrier-Astra Rail (Wagony Swidnica sp. z.o.o and Astra Rail Industries S.A.), Duro Dakovic, On Rail, and Tatravagonka a.s. Additionally, GRE's Ostróda, Poland maintenance facility assembles tank cars each year. As of December 31, 2022, GRE had commitments to acquire from third parties, primarily from Gök Yapi San. Tic. a.s., Greenbrier-Astra Rail, Duro Dakovic and Tatravagonka a.s., 1,489 newly manufactured railcars to be delivered in 2023.

As of December 31, 2022, Rail India owned 5,872 railcars with estimated useful lives of 15 to 25 years. Rail India's leases are net leases and have terms generally ranging from four to fourteen years. As of December 31, 2022, the average remaining lease term of the Indian fleet was approximately 59 months. Rail India has a small customer base with thirteen customers in the automotive, container, steel, cement, and bulk commodities transport sector, as well as one customer in the public sector. As of December 31, 2022, Rail India had entered into contracts to acquire 2,197 railcars to be delivered in 2023, the majority of which have committed leases in place with customers.

In 2022, after a thorough strategic review, we decided to exit Rail Russia. This decision was due to the impacts of the Russia/Ukraine conflict on our business and the business risks associated with the geopolitical environment resulting from that conflict. See "Rail International" in Part II, Item 7 of this Form 10-K for more detail. As of December 31, 2022, Rail Russia owned 380 railcars with useful lives of 22 to 32 years. On January 31, 2023, we completed the sale of Rail Russia. See "Note 26. Subsequent Events" in Part II, Item 8 of this Form 10-K.

**Maintenance**

GRE operates a maintenance facility in Ostróda, Poland that assembles railcars for GRE's fleet and performs significant repairs, regulatory compliance, and modernization work for our owned railcars. This facility is supplemented by an extensive network of third-party repair facilities. The third-party facilities accounted for approximately 69% of GRE's fleet repair costs in 2022.

Similar to our Rail North America segment, GRE's customers periodically require maintenance services that are not included in the full-service lease agreement. These services are generally related to the repair of railcar damage caused by customers and railways. Revenue earned from these maintenance activities is recorded in other revenue.

In India, all railcar maintenance is performed by Indian Railways or third-parties authorized by Indian Railways, in accordance with regulatory requirements.

In Russia, all railcar maintenance was performed by third-party repair facilities either owned or authorized by Russian Railways, in accordance with regulatory requirements.

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***PORTFOLIO MANAGEMENT***

Portfolio Management is composed primarily of our ownership in a group of joint ventures with Rolls-Royce plc that lease aircraft spare engines and GATX Engine Leasing ("GEL"), our wholly owned aircraft spare engine leasing business.

![gmt-20221231_g3.jpg](gmt-20221231_g3.jpg)

**Affiliates**

The Rolls-Royce & Partners Finance joint ventures (collectively the "RRPF affiliates") are a group of 50% owned domestic and foreign joint ventures with Rolls-Royce plc (or affiliates thereof, collectively "Rolls-Royce"), a leading manufacturer of commercial aircraft jet engines. The RRPF affiliates are primarily engaged in two business activities: leasing of aircraft spare engines to a diverse group of commercial aircraft operators worldwide and leasing of aircraft spare engines to Rolls-Royce for use in their engine maintenance programs. As of December 31, 2022, the RRPF affiliates, in aggregate, owned 398 engines, of which 199 were on lease to Rolls-Royce. Aircraft engines have an estimated economic useful life of 20 to 25 years. As of December 31, 2022, the average age of these engines was approximately 12 years. Lease terms vary, but typically range from 3 to 12 years. Rolls-Royce acts as manager for each of the RRPF affiliates and also performs substantially all required maintenance activities.

**Owned Assets**

GEL is our wholly owned entity that invests directly in aircraft spare engines. In 2021, GEL acquired 14 aircraft spare engines for approximately $352 million, including four engines for $120 million from the RRPF affiliates. As of December 31, 2022, these engines are on long-term leases with airline customers and have lease terms that generally range from 9 to 11 years. In 2022, GEL acquired five aircraft spare engines for approximately $150 million, which are employed in an engine capacity agreement with Rolls-Royce for use in their engine maintenance programs. The RRPF affiliates manage all leases of GEL's aircraft spare engines. These aircraft spare engines have an estimated economic useful life of 20 to 25 years. As of December 31, 2022, the average age of these engines was approximately 3 years.

Portfolio Management also has marine assets (the "Specialized Gas Vessels") that are utilized to transport pressurized gases and chemicals, such as liquefied petroleum gas and ethylene, primarily on short-term spot contracts and medium-term charters and contracts of affreightment for major oil and chemical customers worldwide. In 2022, we made the decision to sell the Specialized Gas Vessels. We believe selling these vessels will better align our strategic focus. As a result of this decision, we classified the Specialized Gas Vessels as held for sale. GATX sold two of the vessels in 2022, and the three remaining vessels continue to be classified as held for sale as of December 31, 2022. See "Portfolio Management" in Part II, Item 7 of this Form 10-K for more detail.

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***OTHER***

On December 29, 2020, we acquired Trifleet Leasing Holding B.V. ("Trifleet"), one of the largest tank container lessors in the world, headquartered in Dordrecht, Netherlands. As of December 31, 2022, Trifleet owned and managed a fleet of approximately 22,000 tank containers, leased to a diverse base of approximately 300 customers in the chemical, industrial gas, energy, food, cryogenic and pharmaceutical industries, and tank container operators. These tank containers have estimated useful lives of 15 to 25 years and an average age of approximately 7 years. Trifleet's lease terms generally range from one to five years and as of December 31, 2022, the average remaining lease term was approximately 26 months. Trifleet manages tank containers on behalf of a limited number of third-party container investors under long-term agreements. Under these agreements, Trifleet earns fees for managing these investor-owned fleets, and provides various services, including the sourcing of new containers and customers, leasing and remarketing of tank containers, and arranging inspection and maintenance services. Trifleet's primary competitors are Eurotainer, Exsif, Seaco, and CS Leasing.

Trifleet acquires new tank containers primarily from China International Marine Containers (Group) Ltd. ("CIMC"), Welfit Oddy, Jingjiang Asian-Pacific Logistics Equipment Co., Ltd., and Nantong Tank Container Co., Ltd. ("NT Tank"). As of December 31, 2022, Trifleet had commitments to acquire from third-parties, primarily from CIMC and NT Tank, 610 newly manufactured tank containers to be delivered in 2023.

**TRADEMARKS AND PATENTS**

Patents, trademarks, and licenses are not material to our businesses taken as a whole.

**SEASONAL NATURE OF BUSINESS**

GATX's business is not materially impacted by seasonality of operations.

**CUSTOMER BASE**

GATX, taken as a whole, is not dependent upon a single customer nor does it have any significant customer concentrations. Segment concentrations, if material, are described above.

See "Note 14. Concentrations" in Part II, Item 8 of this Form 10-K for additional information.

**HUMAN CAPITAL**

The strength of our workforce is a significant contributor to our success. To facilitate talent attraction and retention, we endeavor to make GATX a diverse, inclusive, and safe workplace with opportunities for our employees to grow and develop in their careers. This is supported by fair compensation, a range of benefits, health and wellness offerings, and programs that build connections between our employees and their communities.

**Employees and Employee Relations**

As of December 31, 2022, we employed 1,904 persons globally, of whom approximately 34% were union workers covered by collective bargaining agreements. The hourly employees at our U.S. service centers are represented by the United Steelworkers. Employees at three of Rail North America's Canadian service centers are represented by Unifor and the Employee Shop Committee of Rivière-des-Prairies. Certain employees of GATX Rail Europe are represented by one union in Poland.

See "Note 14. Concentrations" in Part II, Item 8 of this Form 10-K for additional information about our employees and concentration of labor force.

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**Diversity and Inclusion**

GATX is committed to fostering a diverse and inclusive environment where employees feel valued and welcomed to be their best personally and professionally. In recent years, GATX has committed to strengthening its culture of diversity and inclusion through a variety of projects and processes, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a hiring initiative, which encourages diverse hires and aims to mitigate unconscious bias;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• diverse candidate slates for management and management-feeder positions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interviewer slates designed to have diverse voices involved in the selection process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a consistent methodology for evaluating candidates to maintain focus on job-related criteria;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• hiring, promoting, and developing diverse talent in order to increase representation in leadership positions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conducting an annual compensation analysis that seeks to ensure pay equity across gender, race, and ethnicity for professional, managerial, and executive level positions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• administration of a periodic employee engagement survey, including specific questions geared toward diversity and inclusion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a Day of Understanding for employees in North America that includes workshops, panels, and speakers on diversity and inclusion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• targeted diversity and inclusion training for leaders and salaried employees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• employee resource groups dedicated to enhancing our diverse and inclusive culture, including resource groups supporting women, racially and ethnically diverse employees, and the LGBTQ+ community.

GATX's diversity and inclusion efforts are led by the Head of Diversity, Equity, and Inclusion ("DEI"), who reports directly to GATX's Chief Human Resources Officer and provides periodic updates to GATX's Board of Directors.

**Talent Development and Retention**

We champion learning and career growth for our employees, as we believe the talent and efforts of our employees drive the success of our business. We believe the long tenure of many GATX employees is an attestation to the organization's culture and career opportunities. With training for emerging leaders and new operations leaders as well as a wide array of e-learning options, employees are supported with a multi-pronged approach to learning. Managers receive training on topics such as managing in a hybrid work environment, performance management, and goal-setting. Maintenance staff have access to certification programs that enable their career progression, and career success profiles provide transparency into what it takes to be successful at GATX as an individual contributor and also as a leader. Our talent development programs are designed to broaden representation in leadership pipelines while also providing employees with the resources they need to help achieve their career goals, build management skills, and lead their organizations.

**Compensation and Benefits**

GATX provides comprehensive compensation and benefits programs to support our employees' overall well-being. In addition to offering competitive salaries, GATX provides employees with annual bonuses, stock awards, a matched 401(k) plan, comprehensive health insurance, prescription drug coverage, health savings accounts, and paid time off. Our retirement program includes pension plans, a health reimbursement account, and pre-65 medical plan for employees retiring from the company. Other benefits include life, disability, and accident insurance; paid parental leave; identity theft coverage; flexible time off; adoption assistance; tuition reimbursement; and telecommuting flexibility.

**Safety**

GATX strives to maintain the highest levels of safety by fostering a culture that makes safety a top priority. GATX utilizes a continuous improvement methodology to identify safety risks and hazards and drive improvement initiatives.

We continue to ensure that our railcar maintenance facility employees and inspectors, who are essential workers in the rail industry, can safely perform their jobs every day.

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GATX continues to be recognized as a Responsible Care Partner by the American Chemistry Council and the Chemical Industry Association of Canada ("CIAC") and is an active participant in the Transportation Community Awareness and Emergency Response initiative, a national outreach effort assisting communities to prepare for and respond to possible hazardous materials transportation incidents. Additionally, GATX offers training on the proper use of our equipment and on regulations that impact our business. We hold training events at customer locations across North America through the use of our TankTrainer™ mobile classroom. Since the program's inception in 1993, we have trained more than 22,000 customers and emergency responders.

**Community Commitment**

We believe that building connections between our employees and their communities creates a more meaningful, fulfilling, and enjoyable workplace. GATX has a long history of supporting causes in communities where our employees live and work, establishing a company culture that values strong corporate citizenship. Every year, our local offices across the globe organize and encourage employees to volunteer and give back through programs that focus on addressing the needs of underserved populations and building vibrant communities. Highlights from 2022 included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In Chicago, Illinois, employees participated in a service day with Big Shoulders Fund, which provides support to inner-city schools, to clean, beautify, and prepare schools for the new school year. Further, GATX employees mentor students year-round and comprise the largest single group of mentors to the organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Through the 'You Care—We Care' initiative, employees across Europe donated blood; cleaned streets, parks and forests; and participated in sports activities to promote physical and mental health. For every hour employees spent giving back, GATX Rail Europe made a financial contribution to Polska Akcja Humanitarna, a humanitarian organization in Poland.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In Red Deer, Alberta, employees volunteered at the annual Red Deer River Cleanup, which promotes the protection, preservation, and sustainability of the area's waterways. The team spent the afternoon picking up litter from the Red Deer River shoreline and surrounding area, and GATX donated latex gloves, vests, hand sanitizers, and funds to the effort.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• GATX employees in Waycross, Georgia collected, packed, and distributed food to three families in the community to enjoy on Thanksgiving.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In Chicago, Illinois, Galena Park, Texas, and Hearne, Texas, employees helped create life-changing wishes in partnership with their local Make-A-Wish chapters. Further, over the last 25 years, GATX and its employees have donated more than $5 million to Make-A-Wish Illinois through corporate contributions and employee giving and fundraising.

**SUSTAINABILITY**

We are committed to growing our business in a sustainable and socially responsible manner, and we demonstrate our commitment through our programs and initiatives. Our Environmental, Social and Governance ("ESG") Committee, a multi-functional team, meets periodically to develop, assess, and prioritize ESG topics that are important to our business and our stakeholders and to continually improve both the measurement and transparency of our ESG disclosures and practices. The Governance Committee of GATX's Board of Directors has primary oversight responsibility for our ongoing and developing ESG efforts. We maintain a Sustainability page on our website (www.gatx.com) to highlight our environmental and social responsibility accomplishments and provide key performance data to our stakeholders. Beginning in 2021, GATX has issued an annual Sustainability Accounting Standards Board ("SASB") report, which can be found on our website, that discloses metrics related to relevant ESG factors. Nothing on our website shall be deemed incorporated by reference into this Annual Report on Form 10-K.

**ENVIRONMENTAL MATTERS**

Our operations, facilities, and properties are subject to extensive federal, state, local, and foreign environmental laws and regulations. These laws cover discharges to waters; air emissions; toxic substances; the generation, handling, storage, transportation, and disposal of waste and hazardous materials; and the investigation and remediation of contamination. These laws have the effect of increasing the cost and liability associated with leasing and operating assets, and violations can result in significant fines, penalties, or other liabilities. Environmental risks and compliance with applicable environmental laws and regulations are inherent in the use of rail and other transportation assets, which can involve transporting chemicals and other hazardous materials.

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We are subject to, and may from time to time continue to be subject to, environmental cleanup and enforcement actions in the United States and in the foreign countries in which we operate. In particular, the federal Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), also known as the Superfund law, generally imposes joint and several liability for investigation, cleanup, and enforcement costs on current and former owners and operators of a site, without regard to fault or the legality of the original conduct. Accordingly, we have been and may, in the future, be named as a potentially responsible party under CERCLA and other federal, state, local, and foreign laws or regulations for all or a portion of the costs to investigate and clean up sites at which certain contaminants may have been discharged or released by us, our current lessees, former owners or lessees of properties, or other third parties. Environmental remediation and other environmental costs are accrued when considered probable and amounts can be reasonably estimated. As of December 31, 2022, environmental costs were not material to our financial position, results of operations, or cash flows. For further discussion, see "Note 23. Legal Proceedings and Other Contingencies" in Part II, Item 8 of this Form 10-K.

We recognize that climate change, including related regulatory action, has the potential to impact our leasing businesses and maintenance operations. GATX continues to internally evaluate and assess business, operational, and strategic risks associated with climate change and reports on key environmental data. In 2022, GATX continued annual publication of Scope 1 and Scope 2 greenhouse gas emissions for all our facilities globally and worked on assessing our full value chain impacts on the environment in an effort to identify opportunities to reduce those impacts.

**INFORMATION ABOUT OUR EXECUTIVE OFFICERS**

The following information regarding our executive officers is included in Part I in lieu of inclusion in our definitive Proxy Statement:

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| | | | |
|:---|:---|:---|:---|
| <br>**<u>Name</u>** | <br>**<u>Offices Held</u>** | **Position Held Since** | **Age** |
| Robert C. Lyons | President and Chief Executive Officer | 2022 | 59 |
| Thomas A. Ellman | Executive Vice President and Chief Financial Officer | 2018 | 54 |
| Brian L. Glassberg | Executive Vice President, General Counsel and Corporate Secretary | 2022 | 48 |
| M. Kim Nero | Executive Vice President and Chief Human Resources Officer | 2021 | 48 |
| Paul F. Titterton | Executive Vice President and President, Rail North America | 2022 | 47 |
| Niyi A. Adedoyin | Senior Vice President and Chief Information Officer | 2016 | 55 |
| Jennifer M. McManus | Senior Vice President, Controller and Chief Accounting Officer | 2020 | 43 |
| Jennifer L. Van Aken | Senior Vice President, Treasurer and Chief Risk Officer | 2020 | 48 |
| Jeffery R. Young | Senior Vice President and Chief Tax Officer | 2018 | 60 |
| Robert A. Zmudka | Senior Vice President and Chief Commercial Officer, Rail North America | 2018 | 55 |

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• &nbsp;&nbsp;&nbsp;&nbsp;Mr. Lyons was elected President and Chief Executive Officer effective April 2022. Previously, Mr. Lyons served as Executive Vice President and President, Rail North America from 2018 to April 2022, Executive Vice President and Chief Financial Officer from 2012 to August 2018, Senior Vice President and Chief Financial Officer from 2007 to 2012, Vice President and Chief Financial Officer from 2004 to 2007, Vice President, Investor Relations from 2000 to 2004, Project Manager, Corporate Finance from 1998 to 2000, and Director of Investor Relations from 1996 to 1998.

• &nbsp;&nbsp;&nbsp;&nbsp;Mr. Ellman was elected Executive Vice President and Chief Financial Officer effective August 2018. Previously, Mr. Ellman served as Executive Vice President and President, Rail North America from 2013 to August 2018, Senior Vice President and Chief Commercial Officer from 2011 to 2013, and Vice President and Chief Commercial Officer from 2006 to 2011. Prior to re-joining GATX in 2006, Mr. Ellman served as Senior Vice President and Chief Risk Officer and Senior Vice President, Asset Management of GE Equipment Services, Railcar Services and held various positions at GATX in the GATX Rail Finance Group.

• &nbsp;&nbsp;&nbsp;&nbsp;Mr. Glassberg was elected Executive Vice President, General Counsel and Corporate Secretary effective December 2022. Previously Mr. Glassberg served as Deputy General Counsel and has served in various leadership roles within the law department since joining GATX in October 2011. Prior to joining GATX, Mr. Glassberg was an associate in the corporate department of the Washington, DC and Chicago, IL offices of Latham & Watkins, LLP.

• &nbsp;&nbsp;&nbsp;&nbsp;Ms. Nero was elected Executive Vice President and Chief Human Resources Officer effective May 2021. Prior to joining GATX, Ms. Nero served as Vice President, Human Resources at Ferrara Candy Company. Prior to that, she held positions in sales and then

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went on to lead global human resources functions in the financial, pharmaceutical, consumer packaged goods, and manufacturing industries at Discover, EVRAZ, Eli Lilly, and SC Johnson Wax.

• Mr. Titterton was elected Executive Vice President and President, Rail North America effective April 2022. Previously, Mr. Titterton served as Senior Vice President and Chief Operating Officer, Rail North America from 2018 to April 2022, Senior Vice President and Chief Commercial Officer, Rail North America from 2015 to 2018, Vice President and Chief Commercial Officer from 2013 to 2015, Vice President and Group Executive, Fleet Management, Marketing and Government Affairs from 2011 to 2013, Vice President and Executive Director, Fleet Management from 2008 to 2011, and in a variety of positions of increasing responsibility since joining the company in 1997.

• &nbsp;&nbsp;&nbsp;&nbsp;Mr. Adedoyin was elected Senior Vice President and Chief Information Officer effective January 2016. Previously, Mr. Adedoyin served as Vice President and Chief Information Officer from 2013 to January 2016 and Senior Director, IT Strategy and Project Management Office from 2008 to 2013.

• Ms. McManus was elected Senior Vice President, Controller and Chief Accounting Officer effective January 2020. Previously Ms. McManus served as Senior Director, Investor Relations and Accounting Research, Policy & Planning since May 2017 and Director, Accounting Research, Policy & Planning from June 2015 to May 2017. Prior to joining GATX, Ms. McManus held various positions of increasing responsibility with Hyatt Hotels Corporation, Tribune Company, and in public accounting.

• Ms. Van Aken was elected Senior Vice President, Treasurer, and Chief Risk Officer effective September 2020. Previously Ms. Van Aken served as Vice President, Financial Planning & Analysis from 2019 to 2020, Senior Director, Financial Planning & Analysis from 2018 to 2019, Assistant Treasurer, Corporate Finance from 2016 to 2018, Director, Investment Risk Management from 2015 to 2016, Director, Investor Relations from 2010 to 2015, Director, Corporate Finance from 2009 to 2010, and Manager, Corporate Finance from 2006 to 2009. Prior to joining GATX, Ms. Van Aken held a number of positions of increasing responsibility in the financial services industry.

• Mr. Young was elected Senior Vice President and Chief Tax Officer effective August 2018. Previously, Mr. Young served as Vice President and Chief Tax Officer from 2015 to August 2018, Vice President of Tax from 2007 to 2015, and as Director of Tax from 2003 to 2007. Prior to joining GATX, Mr. Young spent twenty years in a variety of tax related positions of increasing responsibility in public accounting and the financial services industry.

• Mr. Zmudka was elected Senior Vice President and Chief Commercial Officer, Rail North America effective August 2018. Previously, Mr. Zmudka served as Vice President and Group Executive, North American Sales & Marketing from 2010 to August 2018, Vice President and Executive Director, Strategic Sales from 2007 to 2010, and Vice President, National Accounts from 2006 to 2007. Mr. Zmudka joined GATX in 1989 and worked in various sales and fleet portfolio roles before being promoted to Vice President, Regional Sales in 2001.

**AVAILABLE INFORMATION** 

We make available free of charge at our website, www.gatx.com, our most recent annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to the Securities Exchange Act of 1934, as amended (the "1934 Act"), as soon as reasonably practicable after such reports are electronically filed with, or furnished to, the U.S. Securities and Exchange Commission ("SEC"). The SEC maintains a website that contains reports, proxy, and other information that we have filed with the SEC. The SEC website may be found at http://www.sec.gov. Charters for the Audit Committee, Compensation Committee and Governance Committee of the Board of Directors, the Corporate Governance Guidelines, the Code of Business Conduct and Ethics and the Code of Ethics for Senior Company Officers are posted under Corporate Governance in the Investor Relations section of our website, and are available in print upon request by any shareholder. Within the time period prescribed by SEC and New York Stock Exchange regulations, we will post on our website any amendment to the Code of Ethics for Senior Company Officers and the Code of Business Conduct and Ethics or any waivers thereof. The information on our website is not incorporated by reference into this report.

**Item 1A. *Risk Factors***

Investors should consider the risk factors described below as well as other information contained in this filing or our other filings with the U.S. Securities and Exchange Commission before investing in our securities. If any of the events described in the risk factors below occur, our business, financial condition and results of operations could be materially adversely affected.

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**Business and Operational Risks**

***The ongoing military action between Russia and Ukraine could adversely affect our business, financial condition and results of operations.***

On February 24, 2022, Russian military forces launched a military action in Ukraine. Although the length, impact and outcome of the ongoing military conflict in Ukraine is highly unpredictable, this conflict has already led to significant market and other disruptions, including a dramatic increase in energy prices across Europe, extreme volatility in commodity prices and supply of energy resources, instability in financial markets, supply chain challenges and disruptions, slower new railcar deliveries, limited access to key components, increased labor costs, inflationary pressures, political and social instability, as well as an increase in cyberattacks and espionage, any of which could adversely impact our business, financial condition and results of operations. These disruptions have been more impactful in Europe and India.

As a result of the conflict in Ukraine, the United States, the European Union, the United Kingdom and other countries have implemented, and may implement additional, sanctions, export controls and other measures against Russia, Belarus and other countries, regions, officials, individuals or industries in their respective territories. Such sanctions and other measures, as well as the existing and potential further responses from Russia or other countries to such sanctions, tensions and military actions, could adversely affect the global economy and financial markets and could adversely affect our business, financial condition and results of operations.

As of December 31, 2022, our rail operations in Russia consisted of a fleet of 380 railcars managed by three employees. In 2022, as a result of our decision to exit Russia, the net assets of this limited railcar leasing business were classified as held for sale and an impairment loss was recognized. On January 31, 2023, we completed the sale of our Russian business and therefore no longer have any operations in Russia. See "Note 26. Subsequent Events" in Part II, Item 8 of this Form 10-K.

In the first quarter of 2022, our spare aircraft engine leasing joint ventures with Rolls-Royce plc ("RRPF") recognized an impairment charge on three engines leased to a Russian airline customer. If the conflict between Russia and Ukraine has a longer-term impact on international air travel, or adversely impacts aircraft spare engine leasing, it is possible that the value of other engines in the RRPF or GATX Engine Leasing Ltd. portfolios may be negatively affected and additional asset impairments may be required, the magnitude of which is unknown.

Our business must be conducted in compliance with applicable economic and trade sanctions laws and regulations, including those administered and enforced by the U.S. Department of Treasury's Office of Foreign Assets Control, the U.S. Department of State, the U.S. Department of Commerce, the United Nations Security Council and other relevant governmental authorities. Failure to comply with the sanctions, laws and regulations could result in monetary fines or other penalties, which could have an adverse impact on our reputation, business, financial condition and results of operations.

Any of the above-mentioned factors could adversely affect our business, financial condition and results of operations. Any such disruptions may also magnify the impact of other risks described elsewhere in this report.

***The global COVID-19 pandemic and measures taken in response to the pandemic may continue to have an adverse impact on our operations, commercial activity, asset values, financial position or liquidity in the future.***

The ongoing COVID-19 pandemic (including the emergence of new variants) continues to cause disruptions in global supply chains, and recent changes in the Chinese government's approach to the pandemic may result in greater disruptions and potentially a slowdown of economic activity. Our foreign operations source certain railcar components and tank containers from China, and a delay in obtaining, or an inability to obtain, such components could adversely impact those operations and our financial performance. In addition, the pandemic caused a dramatic reduction in air travel, which reduced demand for the aircraft spare engines that we and our RRPF affiliates lease, and it is unclear when global air travel will return to pre-pandemic levels. A slow recovery in the market for air travel, particularly the long-haul routes that often utilize wide-body aircraft equipped with the spare engine models that we and our RRPF affiliates predominantly lease, could have an adverse effect on our business, financial condition and results of operations.

The duration of, and the situation surrounding, the COVID-19 pandemic and its economic consequences remain uncertain, and the pandemic's continuing impact on our costs, operations, financial performance, and liquidity, as well as its impact on our ability to successfully execute our business strategy, is difficult to predict. Further, the ultimate impact of the COVID-19 pandemic on our operations and financial performance depends on many factors that are not within our control, including, but not limited to: actions taken by others in response to the pandemic; impacts on global and regional economies, travel, and economic activity; inflationary pressures; economic uncertainty and volatility in financial markets; and global supply chain disruptions. As a result, we expect

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COVID-19 may continue to negatively impact our operating results in future periods, including by increasing many of the risks described elsewhere in this report. However, we are currently unable to provide any assurance as to the likelihood, magnitude, and duration of any such impact.

***A significant decrease in lease renewals of our transportation assets by our customers or a significant increase in the number of compliance-based maintenance events could negatively impact operations and substantially increase our costs.***

Decreases in customer demand for our transportation assets could increase the number of leases that are not renewed upon expiration, resulting in the return of such assets by our customers. Returned transportation assets often must undergo maintenance and service work before being leased to new customers. A significant increase in the number of leased assets requiring maintenance may negatively affect our operations and substantially increase maintenance and other related costs.

We also perform a variety of government or industry-mandated maintenance programs on our fleet of transportation assets. These compliance programs are cyclical in nature, and as a result, we can face significant increases in the number of maintenance events in any given year. A significant increase in maintenance events or severe constraints in the repair networks may negatively impact our operations and substantially increase maintenance and other related costs as a result of increased volume or the need to utilize higher cost third party maintenance providers. In addition, while we rely on third party maintenance providers to assist with these compliance procedures for our transportation assets, high demand faced by these providers from other asset owners may constrain our access to the providers or may substantially increase our costs.

***Events that negatively affect certain assets, customers, or geographic regions could have a negative impact on our results of operations.***

We generally derive our revenues from a variety of asset types, customers, industries, and geographic locations. However, from time to time we could have a large investment in a particular asset type, a large revenue stream associated with a particular customer or industry, or a large number of customers located in a particular geographic region. Decreased demand from a discrete event impacting a specific asset type, customer, industry, or region in which we have a concentrated exposure could negatively impact our results of operations.

***Our long-term railcar purchase commitments could subject us to material operational and financial risks.***

Unlike some of our competitors in the railcar leasing market, we do not manufacture railcars. In order to obtain committed access to a supply of newly built railcars on competitive terms, we regularly enter into long-term supply agreements with manufacturers to purchase significant numbers of newly built railcars over a multi-year period. Some of these agreements may provide for flexibility in the pricing, timing, and quantity of our purchasing commitments, while other agreements may provide no such flexibility. Therefore, if economic conditions weaken during the term of a long-term supply agreement, it is possible that we may be required to continue to accept delivery of, and pay for, new railcars at times when it may be difficult for us to lease such railcars at reasonable rates, or at all. Furthermore, we may be required to take delivery of railcars at points when our financing costs may be high. These factors could negatively affect our revenues and profitability. In addition, if tariffs, labor interruptions or shortages, trade disputes, commodity prices, geopolitical tensions, inflation, supply chain disruptions, or other factors lead to higher prices for steel or other raw materials used to manufacture railcars, we may be required to pay higher prices to purchase new railcars, which could adversely affect our ability to profitably lease those railcars to customers.

***Soft market conditions and declines in asset values may reduce opportunities for us to generate remarketing income.***

We utilize our extensive knowledge and experience to remarket transportation assets in order to optimize the composition of our fleets, and these activities generate income that contributes significantly to segment profit. Reduced demand for our assets could reduce opportunities for us to generate remarketing income. A significant or prolonged decline in the secondary market for our assets could adversely affect our financial performance.

***We may not be able to successfully consummate and manage ongoing acquisition and divestiture activities, which could have an adverse impact on our financial statements.***

From time to time, we may acquire other businesses and, based on an evaluation of our business portfolio, divest existing businesses. These acquisitions and divestitures may present financial, managerial, and operational challenges, including diversion of management attention from existing businesses, difficulty with integrating or separating personnel and financial and other systems,

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increased expenses and costs, assumption of liabilities and indemnities, increased compliance risks, and potential disputes with the buyers or sellers or third parties. In addition, we may be required to incur asset impairment charges (including charges related to goodwill and other intangible assets) in connection with acquired businesses, which may reduce our profitability. If we are unable to consummate such transactions, we will not receive the expected benefits, and alternative favorable opportunities to invest or divest may not be available to us. If we cannot successfully integrate and grow acquisitions and achieve contemplated revenue synergies and cost savings, or are unable to complete a divestiture, our financial results could be adversely affected.

***We rely on Rolls-Royce in connection with our aircraft spare engine leasing businesses, and certain factors that adversely affect Rolls-Royce could have an adverse effect on those businesses.***

GATX and Rolls-Royce plc. ("Rolls-Royce") each own 50% of domestic and foreign joint venture entities (collectively, the "RRPF affiliates" or "RRPF") that own and lease aircraft spare engines to Rolls-Royce and owners and operators of commercial aircraft. In addition, GATX directly invests in Rolls-Royce aircraft spare engines through its wholly owned subsidiary, GATX Engine Leasing Ltd. ("GEL"), and places some of these engines on long-term leases with airline operators, with an RRPF entity serving as the asset manager. For other engines, GEL also provides Rolls-Royce with access to aircraft spare engine capacity to support Rolls-Royce's engine maintenance program for its customers. Rolls-Royce is therefore a major customer of the RRPF affiliates and of GEL, as well as a critical supplier of aircraft spare engines and commercial, technical, and maintenance services to GATX and the RRPF affiliates. While global air travel has improved in recent quarters, Rolls-Royce and RRPF are facing and may continue to face significant adverse financial and operational issues due to the ongoing adverse impact of COVID-19 and the uncertainty surrounding the Russia/Ukraine conflict. A deterioration in (1) the performance of services provided by Rolls-Royce or RRPF, or (2) the durability and reliability of Rolls-Royce engines, or (3) the financial condition, creditworthiness or liquidity of Rolls-Royce or RRPF could negatively impact GATX's financial performance or, in the case of GEL, its operational performance.

***We operate in a challenging market for talent, and our failure to attract, retain and motivate qualified personnel, including key management personnel, could adversely impact our ability to execute our strategy.***

Our success depends on the strength of our workforce (many of whom are longstanding GATX employees) and therefore on our ability to attract, develop, engage and retain employee talent, including successors to members of senior management. Achieving this objective may be difficult due to many factors, including fluctuations in global economic and industry conditions, competitors' hiring practices and the effectiveness of our compensation programs. The market for both hourly and professional employees has been, and remains, very competitive. Difficulties in recruiting and motivating qualified personnel; the unexpected loss of such individuals resulting in the depletion of our institutional knowledge base; or our inability to successfully transition key roles could hinder our ability to execute our strategy and adversely impact our business and results of operations.

***Many of our employees are represented by unions, and failure to successfully negotiate collective bargaining agreements may result in strikes, work stoppages, or substantially higher labor costs.***

A significant portion of our employees are represented by labor unions and work under collective bargaining agreements that cover a range of workplace matters, such as wages, health and welfare benefits, and work rules. If we fail to negotiate acceptable labor agreements, our business could be disrupted by strikes or lockouts. We could also incur increased operating costs due to higher wages or benefits paid to union workers. Business disruptions or higher operating costs could both have an adverse effect on our financial position, results of operations, or cash flows.

***Our transportation assets may become obsolete.***

In addition to changes in laws, rules, and regulations that may make transportation assets obsolete, changes in the preferred method our customers use to ship their products, changes in demand for particular products, or a shift by customers toward purchasing assets rather than leasing them may adversely impact us. Our customers' industries are driven by dynamic market forces and trends, which are influenced by economic and political factors. Changes in our customers' markets may significantly affect demand for our transportation assets.

***Risks related to our international operations and expansion into new geographic markets could adversely affect our business, financial condition, and operating results.***

We generate a significant amount of our net income outside the United States. In recent years, we have increased our focus on international growth and expansion into select emerging markets as a means to grow and diversify earnings.

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Our foreign operations and international expansion strategy are subject to the following risks associated with international operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Noncompliance with U.S. laws affecting operations outside of the United States, such as the Foreign Corrupt Practices Act

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Noncompliance with a variety of foreign laws and regulations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Failure to properly implement changes in tax laws and the interpretation of those laws

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Failure to develop and maintain data management practices that comply with laws related to cybersecurity, privacy, data localization, and data protection

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fluctuations in currency values

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sudden changes in foreign currency exchange controls

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Inflation or deflation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Discriminatory or conflicting fiscal policies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Difficulties enforcing contractual rights or foreclosing to obtain the return of our assets in certain jurisdictions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Supply chain disruptions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Inability to access railcar, tank container or component supply

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Uncollectible accounts and longer collection cycles that may be more prevalent in foreign countries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ineffective or delayed implementation of appropriate controls, policies, and processes across our diverse operations and employee base

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Imposition of sanctions against countries where we operate or specific companies or individuals with whom we do business, or retaliatory sanctions by such countries on U.S. companies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nationalization or confiscation of assets by foreign governments, and imposition of additional or new tariffs, quotas, trade barriers, regulations, and similar restrictions on our operations outside the United States

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Unforeseen developments and conditions, including terrorism, war, epidemics, and international tensions and conflicts.

**Information Technology Risks**

***We rely on technology in all aspects of our business operations. If we are unable to adequately maintain and secure our information technology ("IT") infrastructure from cybersecurity threats and related disruptions, our business could be negatively impacted.***

Threats to IT systems associated with cybersecurity risks and cyber incidents or attacks have continued to increase in recent years in their frequency and levels of sophistication and intensity by sophisticated and organized groups and individuals with a wide range of motives and expertise. We rely on our IT infrastructure to process, transmit, and store electronic information that is used in all aspects of our business operations, including employee and customer information. The implementation of remote and hybrid work options for employees has led to a substantial increase in remote access to our networks and systems. All IT systems are vulnerable to security threats, such as hacking, viruses, malicious software, and other unlawful attempts to disrupt or gain access to these systems. We are subject to attempted cyber intrusions, hacks and ransom attacks, and we have had and continue to experience events of this nature and expect them to continue. While we have invested in the protection of our data and IT infrastructure, the steps we have taken to mitigate these risks may not be effective to prevent breaches of our IT infrastructure, some of which is managed by third parties, and we may be more vulnerable to a successful cyber-attack or information security incident from our workforce working remotely. Breaches of our IT infrastructure could lead to disruptions in our business, potentially including the theft, destruction, loss, misappropriation, or release of confidential employee and customer information stored on our IT systems or confidential data or other business information and subject us to potential lawsuits or other material legal liabilities or reputational damage. These disruptions could adversely affect our operations, financial position, and results of operations. While we maintain insurance to mitigate our exposure to these risks, our insurance policies, which carry retention and coverage limits, may not be adequate to reimburse us for losses caused by security breaches or other cybersecurity events, and we may not be able to collect fully, if at all, under these insurance policies.

We also are subject to an evolving body of federal, state and foreign laws, regulations, guidelines and principles regarding data privacy, data protection and data security. Many states as well as foreign governments have passed or proposed laws and regulations dealing with the collection and use of personal information obtained from their data subjects, including but not limited to the E.U.'s General Data Protection Regulation and the California Privacy Rights Act, and we could incur substantial penalties or litigation or reputational damage related to violations of such laws and regulations.

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**Legal and Regulatory Risks**

***We have been, and may continue to be, involved in various types of litigation, including claims for personal injury, property damage, environmental damage, and other claims arising from an accident involving our railcars or other assets.***

The nature of our business and assets potentially exposes us to significant personal injury and property damage claims and litigation, environmental claims, or other types of lawsuits inside and outside the U.S. For example, some of our customers use certain types of our transportation assets to transport flammable liquids and other hazardous materials, and an accident involving such transportation assets could lead to litigation and subject us to significant liability. Similarly, if we fail to meet our obligations to maintain our assets in compliance with governmental regulations and industry rules, we could be subject to fines, penalties, and claims for such failure as well as any resulting personal injury or property damage. In some jurisdictions, an accident can give rise to both civil and criminal liabilities for us and, in some cases, our employees. In the event of an unfavorable outcome, we could be subject to substantial penalties or monetary damages, including criminal penalties and fines, and our employees who are named as criminal defendants in any such litigation may be subject to incarceration and fines. A substantial adverse judgment against us could have a material effect on our financial position, results of operations, cash flows, and reputation.

***Our transportation assets and operations are subject to various laws, rules, and regulations. If these laws, rules, and regulations change or we fail to comply with them, it could have a significant negative effect on our business and profitability.***

Our fleets of transportation assets and related operations are subject to various U.S. and non-U.S. laws, rules, and regulations administered by authorities in jurisdictions where we do business. Such laws, rules, and regulations could be changed in ways that would require us to modify our business models and objectives, impose requirements for additional maintenance or substantial modification or refurbishment of our assets, or otherwise affect our returns on investments by restricting existing activities and products, subjecting them to escalating costs or prohibiting them outright. Violations of these laws, rules, and regulations can result in substantial fines and penalties, including potential limitations on operations or forfeiture of assets, and reputational damage.

In addition, proposed SEC rules and other foreign regulations may require us to collect and disclose additional information relating to certain aspects of our operations, such as environmental and climate impacts and cybersecurity events. Adoption of any such rules or regulations could require us to design and implement additional internal and disclosure controls. If the cost of such controls is significant, it could adversely affect our financial condition and result of operations. Moreover, failure of such controls to provide accurate and complete information could result in violation of such rules or regulations, which could have a material effect on our financial position, results of operations, cash flows, and reputation.

***We are subject to extensive environmental regulations and the costs of remediation may be material.***

We are subject to extensive federal, foreign, state, and local environmental laws and regulations concerning, among other things, the discharge of hazardous materials and remediation of contaminated sites. In addition, some of our properties, including those previously owned or leased, have been used for industrial purposes, which may have resulted in discharges onto these properties. Environmental liability can extend to previously owned or operated properties in addition to properties we currently own or use. Additionally, we could incur substantial costs, including cleanup costs, fines, and costs arising out of third-party claims for property or natural resource damage and personal injury as a result of violations of or liabilities under environmental laws and regulations in connection with our or our lessees' current or historical operations. Under some environmental laws in the United States and certain other countries, the owner of a leased asset may be liable for environmental damage, cleanup or other costs in the event of a spill or discharge of material from such asset without regard to the owner's fault. Governments or regulators may change the legislative or regulatory frameworks within which we operate, including environmental laws and regulations, without providing us any recourse to address any adverse effects such changes may have on our business. Due to the regulatory complexities, risk of unidentified contaminants on our properties, and the potential liability for our operations as well as those of our lessees, it is possible environmental and remediation costs may be materially greater than the costs we have estimated.

***We may be affected by climate change or market or regulatory responses to climate change.***

There is increasing global regulatory focus on climate change and greenhouse gas ("GHG") emissions. Climate change may also pose regulatory and environmental risks that could harm our results of operations and affect the way we conduct business. Severe weather, climate change, and natural disasters, such as tornadoes, flooding, fires and earthquakes, could cause significant business interruptions and result in increased costs and liabilities and decreased revenues. We are subject to the risks associated with natural

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disasters and the physical effects of climate change, which may increase in frequency and severity over time and may have a material adverse effect on our assets, operations and business.

In addition, changes in laws, rules, and regulations, or actions by authorities or other third parties to address GHG and climate change could negatively impact our customers and business. For example, restrictions on GHG emissions could significantly increase costs for our customers whose production processes require significant amounts of energy, which could reduce demand for the lease of our assets, while rail and other transportation assets in our fleet that are used to carry fossil fuels, such as coal and petroleum, or that directly or indirectly require fossil fuel consumption for operation of the assets could see reduced demand or be rendered obsolete depending on the extent to which government regulations mandate a reduction in fossil fuel consumption or customer preferences change. New government regulations could also increase our operating costs and compliance with those regulations could be costly. For example, the SEC has proposed disclosure requirements that would require companies to disclose a range of climate-related information, which may require us to incur substantial monitoring and compliance costs. Any of these factors, individually or in operation with one or more of the other factors, or other unforeseen impacts of climate change, could reduce the demand for and value of our assets, and could have an adverse effect on our financial position, results of operations, and cash flows.

**Industry Risks**

***We depend on continued demand from our customers to lease or use our transportation assets and services at satisfactory rates. A significant decline in customer demand could negatively impact our business and financial performance.***

Our profitability depends on our ability to lease assets at satisfactory rates and to re-lease assets upon lease expiration. Customer demand for our transportation assets and services can be adversely affected by various economic and other factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Weak macroeconomic conditions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Weak market conditions in our customers' businesses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adverse changes in the price of, or demand for, commodities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in railroad operations, efficiency, pricing and service offerings, including those related to "precision scheduled railroading" or labor strikes or shortages

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in, or disruptions to, supply chains

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Availability of pipelines, trucks, and other alternative modes of transportation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in conditions affecting the aviation industry, including geographic exposure and customer concentrations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other operational or commercial needs or decisions of our customers

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• World trade policies

Demand for our railcars and other transportation assets is dependent on the strength and growth of our customers' businesses. Some of our customers operate in cyclical or fluctuating markets, such as the steel, energy, chemical, transportation, and construction industries, which are susceptible to macroeconomic downturns and may experience significant changes in demand over time. Weakness in certain sectors of the economy in the United States and other parts of the world may make it more difficult for us to lease our transportation assets or to lease them on profitable terms.

Adverse changes in commodity prices or reduced demand for commodities could reduce customer demand for various types of assets in our fleet. A significant decrease in the price of a commodity may cause producers of that commodity to reduce their production levels. A significant increase in the price of a commodity could cause our customers to switch to less expensive alternatives. In either case, these changes in customer behavior can reduce demand for the portions of our fleet that are used to transport the commodity. In addition, demand for transportation assets used to transport certain commodities, including ethanol and other renewable fuels may be affected by government subsidies and mandates, which may be enacted, changed, or eliminated from time to time, while demand for transportation assets used to transport fossil fuels or that directly or indirectly require consumption of fossil fuels for operation may be affected by government policies and mandates with respect to climate change.

The availability and relative cost of alternative modes of transportation and changes in customer transportation preferences also could reduce demand for our assets. For example, technological innovations in the trucking industry and patterns in U.S. economic growth that favor truck over rail could result in a modal shift away from rail and reduce customer demand for our rail assets. Demand for our other transportation assets and related services is also influenced by many of the factors discussed above. For example, aircraft spare engine leasing is influenced by airline and lessee profitability, patterns in global air travel, reliability and durability of engine types, world trade policies, technological advances, and price and other competitive factors. A significant decline in customer demand for our assets and services could adversely affect our financial performance.

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In many cases, demand for our transportation assets also depends on our customers' desire to lease, rather than buy, the assets. Tax and accounting considerations, interest rates, and operational flexibility, among other factors, may influence a customer's decision to lease or buy assets. We have no control over these external considerations, and changes in these factors could negatively impact demand for our transportation assets held for lease.

***A significant change in pricing and/or service offerings by North American railroads or poor operating conditions could reduce demand for our rail assets and negatively impact our financial performance.***

Our North American rail asset leasing business is impacted by the operations of the railroads, particularly the largest rail systems known as the "Class I railroads", most of which are pursuing some form of major operational transformation under the umbrella term of "precision scheduled railroading" or "PSR". If PSR results in substantial increases in train velocity or decreases in dwell time for rail assets, the resulting excess supply of railcars and/or locomotives may adversely impact the demand for our rail assets. Alternatively, if PSR results in increased pricing and/or reduced service frequency and quality, the value proposition of rail freight for shippers relative to alternative modes of transportation could be reduced. Apart from PSR, other factors such as adverse weather conditions, railroad mergers, labor strikes or shortages, poor service to shippers, other disruptions to railroad operations, and increases in rail traffic could result in slower transit times making rail transportation less attractive to shippers versus other modes of transport. Each of these cases could reduce demand for our rail assets and decreased fleet utilization due to modal shift away from rail, all of which could negatively impact revenue and our results of operations.

***Competition could result in decreased profitability.***

We operate in a highly competitive business environment. In certain cases, our competitors are larger than we are and have greater financial resources, higher credit ratings, and a lower cost of capital, while some of our competitors manufacture railcars for their own leasing businesses. These factors may enable our competitors to offer leases or services to customers at lower rates than we can provide, thus negatively impacting our profitability, asset utilization, and investment volume.

**Economic and Credit Risks**

***Fluctuations in foreign exchange rates could negatively impact our results of operations.***

Upon consolidation, we translate the financial results of certain subsidiaries from their local currency to the U.S. dollar, which exposes us to foreign exchange rate fluctuations. As exchange rates vary, the translated operating results of foreign subsidiaries may differ materially from period to period. We also have gains and losses on foreign currency transactions, which could vary based on fluctuations in exchange rates and the timing of the transactions and their settlement. In addition, fluctuations in foreign exchange rates can affect the demand and price for services we provide both domestically and internationally, and could negatively impact our results of operations. We may seek to limit our exposure to foreign exchange rate risk with currency derivatives, which may or may not be effective. A material and unexpected change in foreign exchange rates could negatively affect our financial performance.

***Deterioration of conditions in the global capital markets, or negative changes in our credit ratings or increased interest rates may limit our ability to obtain financing and may increase our borrowing costs.***

We rely largely on banks and the capital markets to fund our operations and contractual commitments. Typical funding sources include commercial paper, bank term loans, public debt issuances, and a variety of other secured and unsecured financing structures. These markets can experience high levels of volatility and access to capital can be limited for an extended period of time. In addition to conditions in the capital markets, changes in our financial performance or credit ratings or ratings outlook, as determined by rating agencies such as Standard & Poor's, Moody's Investors Service, and Fitch Ratings, Inc., or increased interest rates could cause us to incur increased borrowing costs or to have greater difficulty accessing public and private markets for secured and unsecured debt. Financial and market dynamics and volatility may heighten these risks. If we are unable to obtain financing on acceptable terms, our other sources of funds, including available cash, bank facilities, cash flow from operations, and portfolio proceeds, may not be adequate to fund our operations and contractual commitments.

***Inflation or deflation could have an unanticipated adverse impact on our financial results.***

The timing and duration of the effects of inflation are unpredictable and depend on market conditions, the magnitude of the inflation and other economic factors. While inflation in lease rates as well as inflation in residual values for rail and other transportation assets

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may benefit our financial results, prolonged inflation could result in reduced demand for our transportation assets. Moreover, any benefits may be offset by increases in the costs for goods and services we purchase, including salaries and wages, health care costs, supplies, utilities, maintenance and repair services, transportation assets or components thereof, and materials, as well as increased financing costs. Significant increases in our cost of goods and services could adversely impact our financial performance. Conversely, a period of prolonged deflation could negatively impact our lease rate pricing, residual values, and asset remarketing opportunities. These negative impacts of deflation may be offset by decreases to our costs for goods and services, including those listed above.

***We could be adversely affected by United States and global political conditions, including acts or threats of terrorism or war.***

We may be adversely affected by national and international political developments, instability, and uncertainties, including political unrest and threats of terrorist attacks or war, which could lead to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Legislation or regulatory action directed toward improving the security of transportation assets against acts of terrorism, which could affect the construction or operation of transportation assets and increase costs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A decrease in demand for transportation assets and services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lower utilization of transportation equipment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lower transportation asset lease and charter rates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Impairments and loss of transportation assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Supply chain disruptions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital market disruption, which may raise our financing costs or limit our access to capital

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Liability or losses resulting from acts of terrorism involving our assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A significant deterioration of global growth, and related decreases in confidence or investment activity in the global markets, arising from political or economic tensions, changes, and trends and/or an increase in trade conflict and protectionism.

Depending upon the severity, scope, and duration of these circumstances, the impact on our financial position, results of operations, and cash flows could be material.

**Risks Related to our Common Stock**

***There can be no assurance that we will continue to pay dividends or repurchase shares of our common stock at current levels.***

The timing, amount and payment of future dividends to shareholders and repurchases of our common stock fall within the discretion of our Board of Directors (the "Board"). The Board's decisions regarding the payment of dividends and repurchase of shares depend on many factors such as our financial condition, earnings, capital requirements, debt service obligations, legal requirements, regulatory constraints, and other factors that our Board may deem relevant. We cannot guarantee that we will continue to pay dividends or repurchase shares in the future, and our payment of dividends and repurchase of shares could vary from historical practices and our stated expectations.

***A small number of shareholders could significantly influence our business.***

As of the most recent public filings, six shareholders collectively control more than 60% of our outstanding common stock. Accordingly, a small number of shareholders could affect matters that require shareholder approval, such as the election of directors and the approval of significant business transactions.

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**General Risk Factors**

***Changes to assumptions used to calculate post-retirement costs, increases in funding requirements, and investment losses in pension funds could adversely affect our results of operations.***

We calculate our pension and other post-retirement costs using various assumptions, such as discount rates, long-term return on plan assets, salary increases, health care cost trend rates, and other factors. Changes to any of these assumptions could adversely affect our financial position and results of operations. Periods of low interest rates reduce the discount rate we use to calculate our funding obligations, which may increase our funding requirements. Additionally, changes to laws, regulations, or rules could require us to increase funding requirements or to compensate for investment losses in pension plan assets. If we were forced to increase contributions to our pension plans, our financial position, results of operations, and cash flows could be negatively affected.

***Changes in the mix of earnings in the U.S. and foreign countries and in tax rates and laws could adversely affect our financial results.***

As a global company, we are subject to taxation in the U.S. and numerous other non-U.S. jurisdictions. Significant judgment is required to determine our consolidated income tax position and related liabilities. Our effective tax rate, cash flows and operating results could be affected by changes in the mix of earnings in countries with different statutory tax rates, or material audit assessments, as well as by changes in the local tax laws, regulations and treaties, or the interpretations thereof.

***Our allowance for losses may be inadequate.***

Our allowance for losses on reservable assets may not be adequate to cover credit losses in our portfolio if unexpected adverse changes occur in macroeconomic conditions or if discrete events adversely affect specific customers, industries, or markets. If the credit quality of our customer base materially deteriorates, it may require us to incur additional credit losses and our financial position or results of operations could be negatively impacted.

***We may incur future asset impairment charges.***

We review long-lived assets and joint venture investments for impairment annually, or when circumstances indicate the carrying value of an asset or investment may not be recoverable. Among other circumstances, the following may change our estimates of the cash flows we expect our long-lived assets or joint venture investments will generate, which could require us to recognize asset impairment charges:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A weak economic environment or challenging market conditions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• New laws, rules or regulations affecting our assets or the commodities that they carry, or changes to existing laws, rules or regulations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Events related to particular customers or asset types or geographic markets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Asset or portfolio sale decisions by management.

***The fair market value of our long-lived assets may differ from the value of those assets reflected in our financial statements.***

Our assets primarily consist of long-lived transportation assets such as rail assets, aircraft spare engines and tank containers. The carrying value of these assets on our financial statements may sometimes differ from their fair market value. These valuation differences may be positive or negative and could be material based on market conditions and demand for certain assets.

***We may not be able to obtain cost-effective insurance.***

We manage our exposure to risk, in part, by purchasing insurance. There is no guarantee that cost-effective insurance will consistently be available. If insurance coverage becomes prohibitively expensive or unavailable, we could be forced to reduce our coverage amount and increase the amount of self-insured risk we retain, thereby increasing our exposure to uninsured adverse judgments and other losses and liabilities that could have a material effect on our financial position, results of operations, and cash flows.

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***Our internal control over financial accounting and reporting may not detect all errors or omissions in the financial statements.***

If we fail to maintain adequate internal controls over financial accounting, we may not be able to conclude on an ongoing basis that we have effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 and related regulations. No system of internal control provides absolute assurance that the financial statements are accurate and free of material error.

**Item 1B. *Unresolved Staff Comments***

None.

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**Item 2. *Properties***

Information regarding the general character of our properties is included in Item 1, "Business" of this Form 10-K.

As of December 31, 2022, the locations of our operations were as follows:

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| | | |
|:---|:---|:---|
| | **<u>GATX Headquarters</u>** | |
| | Chicago, Illinois | |
| **<u>Rail North America</u>** | **<u>Rail North America</u>** | **<u>Rail North America</u>** |
| **Business Offices** | **Major Maintenance Facilities** | **Mobile Units** |
| Chicago, Illinois | Colton, California | Galena Park, Texas |
| Burlington, Ontario | Hearne, Texas | Edmonton, Alberta |
| Calgary, Alberta | Waycross, Georgia | |
| Mexico City, Mexico | Montreal, Quebec | |
| | Moose Jaw, Saskatchewan | |
| | Red Deer, Alberta | |
| | **Maintenance Facilities** | |
| | Plantersville, Texas | |
| | Terre Haute, Indiana | |
| | **Customer Site Locations** | |
| | Clarkson, Ontario | |
| **<u>Rail International</u>** | **<u>Rail International</u>** | **<u>Rail International</u>** |
| **Business Offices** | **Major Maintenance Facilities** | **Customer Site Locations** |
| Amsterdam, Netherlands | Ostróda, Poland | Płock, Poland |
| Baar, Switzerland | | |
| Düsseldorf, Germany | | |
| Hamburg, Germany | | |
| Leipzig, Germany | | |
| Moscow, Russia\* | | |
| Delhi, India | | |
| Gurgaon, India | | |
| Paris, France | | |
| Vienna, Austria | | |
| Warsaw, Poland | | |
| | **<u>Portfolio Management</u>** | |
| | Chicago, Illinois | |
| | **<u>Other</u>** | |
| | Dordrecht, Netherlands | |
| | Houston, Texas | |
| | Singapore | |
| | Shanghai, China | |

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_________

(\*) On January 31, 2023, we completed the sale of Rail Russia.

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**Item 3. *Legal Proceedings***

Information concerning litigation and other contingencies is described in "Note 23. Legal Proceedings and Other Contingencies" in Part II, Item 8 of this Form 10-K and is incorporated herein by reference.

**Item 4. *Mine Safety Disclosures***

None.

**PART II**

**Item 5. *Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities***

Our common stock is listed on the New York and Chicago Stock Exchanges under ticker symbol "GATX". We had approximately 1,400 common shareholders of record as of January 31, 2023.

**Issuer Purchases of Equity Securities**

On January 25, 2019, our board of directors approved a $300.0 million share repurchase program, pursuant to which we are authorized to purchase shares of our common stock in the open market, in privately negotiated transactions, or otherwise, including pursuant to Rule 10b5-1 plans. The share repurchase program does not have an expiration date, does not obligate the Company to repurchase any dollar amount or number of shares of common stock, and may be suspended or discontinued at any time. The timing of share repurchases will be dependent on market conditions and other factors.

No share repurchases were completed during the fourth quarter of 2022. As of December 31, 2022, $89.6 million remained available under the repurchase authorization.

**Equity Compensation Plan Information as of December 31, 2022:**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights** | **Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights** | **Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights** | **Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights** | **Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding securities reflected in Column (a))** |
| **Plan Category** | (a) | (a) | (b) | (b) | (c) |
| Equity Compensation Plans Approved by Shareholders | 1461412 | (1) | $95.63 | (2) | 2308729 |
| Equity Compensation Plans Not Approved by Shareholders |  |  |  |  |  |
| Total | 1461412 |  |  |  | 2308729 |

---

__________

(1) Consists of 1,001,359 non-qualified stock options, 111,870 performance shares, 107,720 restricted stock units and 240,463 phantom stock units.

(2) The weighted-average exercise price does not include performance shares, restricted stock or phantom stock units.

For additional information about issuable securities under our equity compensation plans and the related weighted-average exercise price, see "Note 12. Share-Based Compensation" in Part II, Item 8 of this Form 10-K.

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**Common Stock Performance Graph**

The performance graph below compares the cumulative total shareholder return on our common stock for the five-year period ended December 31, 2022, with the cumulative total return of the S&P 500 Index, the S&P MidCap 400 Index, and the Russell 3000 Index. We are not aware of any peer companies whose businesses are directly comparable to ours and, therefore, the graph displays the returns of the indices noted above as those include companies with market capitalizations similar to ours. The graph and table assume that $100 was invested in our common stock and each of the indices on December 31, 2017, and that all dividends were reinvested.

![gmt-20221231_g4.jpg](gmt-20221231_g4.jpg)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **12/31/17** | **12/31/18** | **12/31/19** | **12/31/20** | **12/31/21** | **12/31/22** |
| GATX | $100.00 | $116.65 | $139.68 | $144.18 | $184.45 | $192.14 |
| S&P 500 | 100.00 | 95.61 | 125.70 | 148.81 | 191.48 | 156.77 |
| S&P MidCap 400 | 100.00 | 88.90 | 112.17 | 127.48 | 159.01 | 138.18 |
| Russell 3000 | 100.00 | 94.75 | 124.13 | 150.05 | 188.52 | 152.28 |

---

**Item 6. *[Reserved]***

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**Item 7. *Management's Discussion and Analysis of Financial Condition and Results of Operations***

**OVERVIEW** 

We lease, operate, manage, and remarket long-lived, widely used assets, primarily in the rail market. We report our financial results through three primary business segments: Rail North America, Rail International, and Portfolio Management. Financial results for our tank container leasing business ("Trifleet Leasing") are reported in the Other segment. Historically, we also reported financial results for American Steamship Company ("ASC") as a fourth segment.

In 2022, after a thorough strategic review, we made the decision to exit our rail business in Russia ("Rail Russia"), which is reported within the Rail International segment. This decision was due to the impacts of the Russia/Ukraine conflict on our business and the business risks associated with the geopolitical environment resulting from that conflict. Therefore, the net assets of Rail Russia were classified as held for sale and an impairment loss of $14.6 million was recognized in 2022. On January 31, 2023, we completed the sale of Rail Russia. See "Note 26. Subsequent Events" in Part II, Item 8 of this Form 10-K.

In 2022, we made the decision to sell our liquefied gas-carrying vessels (the "Specialized Gas Vessels") within the Portfolio Management segment. Therefore, the Specialized Gas Vessels were classified as held for sale and impairment losses of $34.3 million were recognized in 2022. We sold two of the vessels in 2022, and the net proceeds received approximated the carrying value of these vessels.

In 2021, we began investing directly in aircraft spare engines through our entity, GATX Engine Leasing Ltd. ("GEL"). In 2021, GEL acquired 14 aircraft spare engines for approximately $352 million, including four engines for $120 million from Rolls-Royce & Partners Finance joint ventures (collectively the "RRPF affiliates" or "RRPF"). In 2022, GEL acquired five aircraft spare engines for approximately $150 million. Financial results for this business are reported in the Portfolio Management segment.

On December 29, 2020, we acquired Trifleet Leasing Holding B.V. ("Trifleet"), one of the largest tank container lessors in the world. Financial results for this business are reported in the Other segment. See "Note 4. Business Combinations" in Part II, Item 8 of this Form 10-K for additional information. A more complete description of our business is included in "Item 1. Business," in Part I of this Form 10-K.

On May 14, 2020, we completed the sale of our ASC business. As a result, ASC is reported as discontinued operations, and financial data for the ASC segment has been segregated and presented as discontinued operations for all periods presented. See "Note 25. Discontinued Operations" Part II, Item 8 of this Form 10-K for additional information. Unless otherwise indicated, the following information relates to continuing operations.

The following discussion and analysis should be read in conjunction with the audited financial statements included in "Item 8. Financial Statements and Supplementary Data" in this Form 10-K. We based the discussion and analysis that follows on financial data we derived from the financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and on certain other financial data that we prepared using non-GAAP components. For a reconciliation of these non-GAAP measures to the most comparable GAAP measures, see "Non-GAAP Financial Measures" at the end of this item. This discussion does not include the comparison of prior year 2021 to 2020 financial results, which can be found in the Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our Annual Report on [F](http://www.sec.gov/ix?doc=/Archives/edgar/data/40211/000004021122000023/gmt-20211231.htm#i8eb0bee525e04bedb3b2733cab347626_91)[orm 10-K](http://www.sec.gov/ix?doc=/Archives/edgar/data/40211/000004021122000023/gmt-20211231.htm#i8eb0bee525e04bedb3b2733cab347626_91)[for the year](http://www.sec.gov/ix?doc=/Archives/edgar/data/40211/000004021122000023/gmt-20211231.htm#i8eb0bee525e04bedb3b2733cab347626_91)[ended December 31, 2021](http://www.sec.gov/ix?doc=/Archives/edgar/data/40211/000004021122000023/gmt-20211231.htm#i8eb0bee525e04bedb3b2733cab347626_91).

**Russia/Ukraine Conflict**

On February 24, 2022, Russian military forces launched a military action in Ukraine. In response to this action, the United States and other countries imposed various economic sanctions and measures against Russia, Belarus, certain sections of Ukraine, and related persons and entities. Russia subsequently enacted countermeasures. Additional sanctions and countermeasures continued to be imposed throughout 2022 as the conflict continued. We continue to closely monitor developments and potential impacts from enacted sanctions and countermeasures and will take mitigating actions as appropriate. This conflict and resulting response has impacted the global economy, financial markets, and supply chains and could adversely affect our business, financial condition, and results of operations.

To date, the conflict has not had a material impact on business operations at our global railcar, aircraft spare engine, and tank container leasing businesses outside of Russia. Furthermore, the nature of the impact on financial results varies across our business units. Higher steel prices have led to higher new asset costs across our rail and tank container leasing businesses, a trend that supports higher lease rates on many existing assets but makes new investments more challenging. Supply chain disruptions, slower new railcar

------

deliveries, and limited access to key components such as wheelsets have been more impactful in Europe and India. We are monitoring the nature and magnitude of these impacts across our rail and tank container leasing businesses.

We had limited rail operations in Russia, which consisted of 380 railcars on lease to three customers and accounted for approximately 1% of GATX's consolidated net income for the year ended December 31, 2022. In 2022, after a thorough strategic review, we decided to exit Rail Russia. This decision was due to the impacts of the Russia/Ukraine conflict on our business and the business risks associated with the geopolitical environment resulting from that conflict. As a result, the net assets of Rail Russia have been classified as held for sale as of December 31, 2022 and an impairment loss of $14.6 million was recognized in 2022. See "Note 10. Asset Impairments and Assets Held for Sale" in Part II, Item 8 of this Form 10-K for further information. On January 31, 2023, we completed the sale of Rail Russia. See "Note 26. Subsequent Events" in Part II, Item 8 of this Form 10-K.

RRPF financial results have also been affected by the conflict. In 2022, RRPF terminated leases for three aircraft spare engines leased to a Russian airline. The Russian government prohibited these engines from leaving the country; therefore, RRPF recorded an impairment charge associated with these three engines in 2022. GATX's 50% share of this net impairment was $15.3 million ($11.5 million after tax).

------

**DISCUSSION OF OPERATING RESULTS**

The following table shows a summary of our reporting segments and consolidated financial results relating to continuing operations and discontinued operations for the years ended December 31 (dollars in millions, except per share data):

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| **Segment Revenues** |  |  |  |
| Rail North America | $908.0 | $891.7 | $934.1 |
| Rail International | 275.3 | 284.3 | 258.1 |
| Portfolio Management | 53.6 | 47.7 | 17.0 |
| Other | 36.1 | 33.7 |  |
|  | $1273.0 | $1257.4 | $1209.2 |
| **Segment Profit (Loss)** |  |  |  |
| Rail North America | $321.3 | $285.4 | $227.6 |
| Rail International | 85.9 | 105.0 | 83.5 |
| Portfolio Management | 14.7 | 60.8 | 77.4 |
| Other | (3.9) | (1.3) | 4.6 |
|  | 418.0 | 449.9 | 393.1 |
| Less: |  |  |  |
| Selling, general and administrative expense | 195.0 | 198.3 | 172.0 |
| Income taxes ($12.3, $55.3 and $33.6 related to affiliates' earnings) | 67.1 | 108.5 | 70.9 |
| **Net Income from Continuing Operations (GAAP)** | $155.9 | $143.1 | $150.2 |
| **Discontinued Operations, Net of Taxes** |  |  |  |
| Net loss from discontinued operations, net of taxes |  |  | (2.2) |
| Gain on sale of discontinued operation, net of taxes |  |  | 3.3 |
| **Total Discontinued Operations, Net of Taxes (GAAP)** |  |  | 1.1 |
| **Net Income (GAAP)** | $155.9 | $143.1 | $151.3 |
| Net income from continuing operations, excluding tax adjustments <br>and other items (non-GAAP) (1) | $217.7 | $182.2 | $162.5 |
| Net income from discontinued operations, excluding tax adjustments <br>and other items (non-GAAP) (1) | $— | $— | $1.1 |
| Net income from consolidated operations, excluding tax adjustments <br>and other items (non-GAAP) (1) | $217.7 | $182.2 | $163.6 |
| Diluted earnings per share from continuing operations (GAAP) | $4.35 | $3.98 | $4.24 |
| Diluted earnings per share from discontinued operations (GAAP) | $— | $— | $0.03 |
| Diluted earnings per share from consolidated operations (GAAP) | $4.35 | $3.98 | $4.27 |
| Diluted earnings per share from continuing operations, excluding tax adjustments <br>and other items (non-GAAP) (1) | $6.07 | $5.06 | $4.59 |
| Diluted earnings per share from discontinued operations, excluding tax adjustments <br>and other items (non-GAAP) (1) | $— | $— | $0.03 |
| Diluted earnings per share from consolidated operations, excluding tax adjustments <br>and other items (non-GAAP) (1) | $6.07 | $5.06 | $4.62 |
| Return on equity (GAAP) | 7.7% | 7.2% | 8.0% |
| Return on equity, excluding tax adjustments and other items (non-GAAP) (1) | 10.8% | 9.2% | 8.6% |
| Investment Volume | $1255.8 | $1131.9 | $1064.0 |

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_________

(1) See "Non-GAAP Financial Measures" at the end of this item for further details.

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***2022 Summary***

Net income from continuing operations was $155.9 million, or $4.35 per diluted share, for 2022 compared to $143.1 million, or $3.98 per diluted share, for 2021, and $150.2 million, or $4.24 per diluted share, for 2020. Results for 2022 included a net negative impact of $61.8 million ($1.72 per diluted share) from tax adjustments and other items, compared to a net negative impact of $39.1 million ($1.08 per diluted share) from tax adjustments and other items in 2021 and a net negative impact of $12.3 million ($0.35 per diluted share) from tax adjustments and other items in 2020 (see "Non-GAAP Financial Measures" at the end of this item for further details).

&nbsp;&nbsp;&nbsp;&nbsp;**•** At Rail North America, segment profit in 2022 was higher than prior year. The increase was primarily attributable to higher net gains on asset dispositions.

&nbsp;&nbsp;&nbsp;&nbsp;**•** At Rail International, segment profit in 2022 was lower than prior year, due to the impairment of Rail Russia and the negative impact of foreign exchange rates, partially offset by higher revenue from more railcars on lease.

&nbsp;&nbsp;&nbsp;&nbsp;**•** At Portfolio Management, segment profit in 2022 decreased compared to prior year, primarily due to the impairment on the Specialized Gas Vessels and lower share of affiliates' earnings from the RRPF affiliates, driven by an impairment charge associated with engines in Russia that RRPF does not expect to recover.

&nbsp;&nbsp;&nbsp;&nbsp;**•** Within Other, Trifleet Leasing's contribution to the segment profit was higher than prior year, a result of higher revenue from more tank containers on lease.

Total investment volume was $1,255.8 million in 2022, compared to $1,131.9 million in 2021, and $1,064.0 million in 2020.

***2023 Outlook***

Conditions in the North American railcar leasing market improved throughout 2022, and we expect conditions to remain favorable in 2023. At Rail International, we expect robust demand for our railcars in both our European and Indian businesses. The operating environment for our engine leasing business at RRPF is expected to improve as we anticipate the gradual recovery in global air travel to continue. We have a strong balance sheet and adequate access to capital, which we believe positions us well to manage our transportation assets based on current market conditions.

&nbsp;&nbsp;&nbsp;&nbsp;• We expect Rail North America's segment profit in 2023 to increase from 2022. Lease rates for railcars scheduled to renew in 2023 will likely be generally higher than expiring rates as the lease rate environment for existing railcars is expected to remain favorable. We anticipate remarketing income to remain at levels similar to 2022 as we continue to optimize our fleet. We expect the impact of inflationary pressures and higher service events and railroad repairs to result in higher maintenance expense in 2023 compared to the prior year. Finally, we anticipate interest expense to be higher in 2023 compared to what we experienced in 2022.

.

&nbsp;&nbsp;&nbsp;&nbsp;• Rail International's segment profit in 2023 is expected to increase from 2022 as the demand for railcars in Europe should continue to be strong and we plan to continue to invest in the fleet. Lease revenue is expected to be higher in 2023, resulting from more railcars on lease and higher lease rates. In India, absent any potential supply chain disruptions, we anticipate significant growth in our fleet, which will also contribute to an increase in segment profit.

&nbsp;&nbsp;&nbsp;&nbsp;• We anticipate Portfolio Management's segment profit in 2023 to be higher than 2022. RRPF results are expected to be higher as the gradual improvement in air travel is expected to continue. We anticipate the contribution to segment profit from GEL, our wholly owned aircraft spare engine leasing business, to increase as a result of additional engines acquired in 2022.

**Segment Operations**

Segment profit is an internal performance measure used by the Chief Executive Officer to assess the profitability of each segment. Segment profit includes all revenues, expenses, pre-tax earnings from affiliates, and net gains on asset dispositions that are directly attributable to each segment. We allocate interest expense to the segments based on what we believe to be the appropriate risk-adjusted borrowing costs for each segment. Segment profit excludes selling, general and administrative expenses, income taxes, and certain other amounts not allocated to the segments.

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***RAIL NORTH AMERICA***

**Segment Summary** 

Conditions in the North American railcar leasing market strengthened throughout 2022. Demand for most existing railcar types was robust, and Rail North America experienced sequential increases in absolute lease rates throughout 2022. Utilization remained strong at 99.5% at the end of the year.

The following table shows Rail North America's segment results for the years ended December 31 (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| **Revenues** |  |  |  |
| Lease revenue | $826.0 | $814.5 | $838.3 |
| Other revenue | 82.0 | 77.2 | 95.8 |
| **Total Revenues** | 908.0 | 891.7 | 934.1 |
| **Expenses** |  |  |  |
| Maintenance expense | 238.5 | 235.4 | 264.7 |
| Depreciation expense | 258.6 | 261.1 | 258.6 |
| Operating lease expense | 36.1 | 39.2 | 49.3 |
| Other operating expense | 24.5 | 30.3 | 27.3 |
| **Total Expenses** | 557.7 | 566.0 | 599.9 |
| **Other Income (Expense)** |  |  |  |
| Net gain on asset dispositions | 119.7 | 94.3 | 38.3 |
| Interest expense, net | (144.6) | (136.2) | (139.9) |
| Other (expense) income | (4.6) | 1.6 | (4.9) |
| Share of affiliates' pre-tax earnings (loss) | 0.5 |  | (0.1) |
| **Segment Profit** | $321.3 | $285.4 | $227.6 |
| **Investment Volume** | $815.9 | $574.4 | $642.0 |

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The following table shows the components of Rail North America's lease revenue for the years ended December 31 (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Railcars | $740.7 | $720.0 | $741.9 |
| Boxcars | 59.5 | 67.9 | 67.1 |
| Locomotives | 25.8 | 26.6 | 29.3 |
| Total | $826.0 | $814.5 | $838.3 |

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**Rail North America Fleet Data**

The following table shows fleet activity for Rail North America railcars, excluding boxcars, for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Beginning balance | 101570 | 103745 | 102845 |
| Cars added | 3712 | 3371 | 4696 |
| Cars scrapped | (2133) | (3076) | (2153) |
| Cars sold | (2195) | (2470) | (1643) |
| Ending balance | 100954 | 101570 | 103745 |
| Utilization rate at year end (1) | 99.5% | 99.2% | 98.1% |
| Renewal success rate (2) | 85.5% | 82.7% | 70.8% |
| Active railcars at year end (3) | 100396 | 100719 | 101815 |
| Average active railcars (4) | 100444 | 100769 | 101658 |

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_______

(1) Utilization is calculated as the number of railcars on lease as a percentage of total railcars in the fleet.

(2) The renewal success rate represents the percentage of railcars on expiring leases that were renewed with the existing lessee. The renewal success rate is an important metric because railcars returned by our customers may remain idle or incur additional maintenance and freight costs prior to being leased to new customers.

(3) Active railcars refers to the number of railcars on lease to customers. Changes in railcars on lease compared to prior years are impacted by the utilization of new railcars purchased from builders or in the secondary market and the disposition of railcars that were sold or scrapped, as well as the fleet utilization rate.

(4) Average active railcars for the year is calculated using the number of active railcars at the end of each month.

As of December 31, 2022, leases for approximately 18,700 tank and freight cars and approximately 1,800 boxcars are scheduled to expire in 2023. These amounts exclude railcars on leases expiring in 2023 that have already been renewed or assigned to a new lessee.

On September 30, 2022 we entered into a new long-term railcar supply agreement with a subsidiary of Trinity Industries, Inc. ("Trinity") to purchase 15,000 newly built railcars through 2028, with an option to order up to an additional 500 railcars each year from 2023 to 2028. The agreement enables us to order a broad mix of tank and freight cars. Trinity will deliver 6,000 tank cars (1,200 per year) from 2024 through 2028. The remaining 9,000 railcars, which can be a mix of freight and tank cars, will be ordered at a rate of 1,500 railcars per order year from 2023 to 2028 and delivered under a schedule to be determined. At December 31, 2022, 682 railcars have been ordered pursuant to the terms of the agreement, none of which have been delivered.

In 2018, we amended a long-term supply agreement with Trinity to extend the term to December 2023, and we agreed to purchase 4,800 tank cars (1,200 per year) beginning in January 2020 and continuing through 2023. At December 31, 2022, 4,454 railcars have been ordered pursuant to the amended terms of the agreement, of which 3,572 railcars have been delivered.

In 2018, we entered into a multi-year railcar supply agreement with American Railcar Industries, Inc. ("ARI"), pursuant to which we agreed to purchase 7,650 newly built railcars. The order encompasses a mix of tank and freight cars to be delivered over a five-year period, beginning in April 2019 and ending in December 2023. ARI's railcar manufacturing business was acquired by a subsidiary of The Greenbrier Companies, Inc. ("Greenbrier") on July 26, 2019, and such subsidiary assumed all of ARI's obligations under our long-term supply agreement. As of December 31, 2022, 7,650 railcars have been ordered, of which 5,795 railcars have been delivered. All railcars covered under this agreement are expected to be delivered by early 2024.

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![gmt-20221231_g5.jpg](gmt-20221231_g5.jpg)

*Lease Price Index*

Our lease price index ("LPI") is an internally-generated business indicator that measures lease rate pricing on renewals for our North American railcar fleet, excluding boxcars. We calculate the index using the weighted-average lease rate for a group of railcar types that we believe best represents our overall North American fleet, excluding boxcars. The average renewal lease rate change is reported as the percentage change between the average renewal lease rate and the average expiring lease rate, weighted by fleet composition. The average renewal lease term is reported in months and reflects the average renewal lease term of railcar types in the LPI, weighted by fleet composition.

During 2022, the renewal rate change of the LPI was positive 23.4%, compared to negative 8.5% in 2021. Lease terms on renewals for cars in the LPI averaged 33 months in 2022 compared to 32 months in 2021.

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![gmt-20221231_g6.jpg](gmt-20221231_g6.jpg)

The following table shows fleet statistics for Rail North America boxcars for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Beginning balance | 12946 | 14315 | 15264 |
| Boxcars added | 543 | 963 | 450 |
| Boxcars scrapped | (230) | (933) | (1396) |
| Boxcars sold | (4596) | (1399) | (3) |
| Ending balance | 8663 | 12946 | 14315 |
| Utilization rate at year end (1) | 99.9% | 99.7% | 95.8% |
| Active boxcars at year end (2) | 8657 | 12909 | 13716 |
| Average active boxcars (3) | 10060 | 12929 | 14134 |

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_______

(1) Utilization is calculated as the number of boxcars on lease as a percentage of total boxcars in the fleet.

(2) Active boxcars refers to the number boxcars on lease to customers. Changes in boxcars on lease compared to prior years are impacted by the utilization of new boxcars purchased from builders or in the secondary market and the disposition of boxcars that were sold or scrapped, as well as the fleet utilization rate.

(3) Average active boxcars is calculated using the number of active boxcars at the end of each month.

The following table shows fleet activity for Rail North America locomotives for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Beginning balance | 577 | 645 | 661 |
| Locomotives added, net of scrapped or sold | (33) | (68) | (16) |
| Ending balance | 544 | 577 | 645 |
| Utilization rate at year end (1) | 89.3% | 89.8% | 81.1% |
| Active locomotives at year end (2) | 486 | 518 | 523 |
| Average active locomotives (3) | 496 | 521 | 537 |

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_______

(1) Utilization is calculated as the number of locomotives on lease as a percentage of total locomotives in the fleet.

(2) Active locomotives refers to the number of locomotives on lease to customers. Changes in locomotives on lease compared to prior years are impacted by locomotives that were sold or scrapped, as well as the fleet utilization rate.

(3) Average active locomotives for the year is calculated using the number of active locomotives at the end of each month.

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***Comparison of Reported Results***

**Segment Profit**

In 2022, segment profit of $321.3 million increased 12.6% compared to $285.4 million in 2021. Segment profit in 2021 included a net gain of $5.3 million attributable to net insurance recoveries for storm damage to a maintenance facility. Excluding this gain, results for Rail North America were $41.2 million higher than 2021, resulting from higher net gains on asset dispositions and higher lease revenue. The amount and timing of disposition gains is dependent on a number of factors and will vary from year to year.

**Revenues**

In 2022, lease revenue increased $11.5 million, or 1.4%, driven by higher lease rates, partially offset by a smaller active fleet. Other revenue increased $4.8 million, primarily due to higher repair revenue.

**Expenses**

In 2022, maintenance expense increased $3.1 million. The increase was largely due to higher cost of repairs and more repairs performed by the railroads, partially offset by the absence of costs incurred at owned maintenance facilities sold in 2021 and 2022. Depreciation expense decreased $2.5 million due to fewer railcars in the fleet during the current year. Operating lease expense decreased $3.1 million, resulting from the purchase of railcars previously on operating leases. Other operating expense decreased $5.8 million due to lower switching, storage, and freight costs.

**Other Income (Expense)**

In 2022, net gain on asset dispositions increased $25.4 million largely due to more railcars sold. The amount and timing of disposition gains is dependent on a number of factors and will vary from year to year. Net interest expense increased $8.4 million, primarily driven by a higher average debt balance, partially offset by a lower average interest rate.

**Investment Volume**

During 2022, investment volume was $815.9 million compared to $574.4 million in 2021. We acquired 4,060 newly built railcars and 585 railcars in the secondary market in 2022, compared to 3,622 newly built railcars and 325 railcars in the secondary market in 2021.

Our investment volume is predominantly composed of acquired railcars, but also includes certain capitalized repairs and improvements to owned railcars and our maintenance facilities. As a result, the dollar value of investment volume does not necessarily correspond to the number of railcars acquired in any given period. In addition, the comparability of amounts invested and the number of railcars acquired in each period is impacted by the mix of railcars purchased, which may include tank cars and freight cars, as well as newly manufactured railcars or those purchased in the secondary market.

***RAIL INTERNATIONAL***

**Segment Summary**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Rail International, composed primarily of GATX Rail Europe ("GRE"), produced strong operating results in 2022. Despite a weakening global economy, demand for railcars in Europe was robust. GRE continued to experience renewal lease rate increases for most railcar types throughout 2022, and utilization was 99.3% at the end of the year. GRE also continued to grow and diversify its fleet during the year.

Our rail operations in India ("Rail India") continued to focus on investment opportunities, diversification of its fleet, and developing relationships with customers, suppliers and the Indian Railways. Rail India achieved strong operating and financial results, despite fleet growth being negatively impacted in 2022 by limited access to railcar manufacturing supply and other supply disruptions, particularly wheelsets, as a result of the Russia/Ukraine conflict and domestic market demand.

In 2022, after a thorough strategic review, we decided to exit our rail operations in Russia ("Rail Russia"). This decision was due to the impacts of the Russia/Ukraine conflict on our business and the business risks associated with the geopolitical environment resulting from that conflict. As a result, the net assets of Rail Russia were classified as held for sale and an impairment loss of $14.6 million was recognized in 2022. See "Note 10. Asset Impairments and Assets Held for Sale" in Part II, Item 8 of this Form 10-K for

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additional information. Financial results were not material to Rail International's segment profit. On January 31, 2023, we completed the sale of Rail Russia. See "Note 26. Subsequent Events" in Part II, Item 8 of this Form 10-K.

The following table shows Rail International's segment results for the years ended December 31 (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| **Revenues** |  |  |  |
| Lease revenue | $266.2 | $272.9 | $248.4 |
| Other revenue | 9.1 | 11.4 | 9.7 |
| **Total Revenues** | 275.3 | 284.3 | 258.1 |
| **Expenses** |  |  |  |
| Maintenance expense | 51.4 | 57.6 | 50.8 |
| Depreciation expense | 69.1 | 73.6 | 66.6 |
| Other operating expense | 8.3 | 9.0 | 7.5 |
| **Total Expenses** | 128.8 | 140.2 | 124.9 |
| **Other Income (Expense)** |  |  |  |
| Net (loss) gain on asset dispositions | (11.2) | 2.7 | 1.2 |
| Interest expense, net | (45.6) | (45.2) | (45.9) |
| Other (expense) income | (3.8) | 3.4 | (5.0) |
| **Segment Profit** | $85.9 | $105.0 | $83.5 |
| **Investment Volume** | $243.9 | $173.3 | $216.0 |

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**GRE Fleet Data**

The following table shows fleet activity for GRE railcars for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Beginning balance | 27109 | 26343 | 24561 |
| Cars added | 1211 | 1131 | 2071 |
| Cars scrapped or sold | (315) | (365) | (289) |
| Ending balance | 28005 | 27109 | 26343 |
| Utilization rate at year end (1) | 99.3% | 98.7% | 98.1% |
| Active railcars at year end (2) | 27801 | 26754 | 25831 |
| Average active railcars (3) | 27288 | 26240 | 25174 |

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_______

(1) Utilization is calculated as the number of railcars on lease as a percentage of total railcars in the fleet.

(2) Active railcars refers to the number of railcars on lease to customers. Changes in railcars on lease compared to prior years are impacted by the utilization of newly built railcars, railcars purchased in the secondary market, and the disposition of railcars that were sold or scrapped, as well as the fleet utilization rate.

(3) Average active railcars for the year is calculated using the number of active railcars at the end of each month.

As of December 31, 2022, leases for approximately 9,601 railcars are scheduled to expire in 2023. This amount excludes railcars on leases expiring in 2023 that have already been renewed or assigned to a new lessee.

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![gmt-20221231_g7.jpg](gmt-20221231_g7.jpg)\

**Rail India Fleet Data**

The following table shows fleet activity for Rail India railcars for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Beginning balance | 4830 | 4156 | 3679 |
| Cars added | 1042 | 715 | 477 |
| Cars scrapped or sold |  | (41) |  |
| Ending balance | 5872 | 4830 | 4156 |
| Utilization rate at year end (1) | 100.0% | 100.0% | 99.0% |
| Active railcars at year end (2) | 5872 | 4830 | 4115 |
| Average active railcars (3) | 5395 | 4326 | 3921 |

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_______

(1) Utilization is calculated as the number of railcars on lease as a percentage of total railcars in the fleet.

(2) Active railcars refers to the number of railcars on lease to customers. Changes in railcars on lease compared to prior years are impacted by the utilization of railcars purchased and the disposition of railcars that were sold, as well as the fleet utilization rate.

(3) Average active railcars for the year is calculated using the number of active railcars at the end of each month.

***Comparison of Reported Results***

**Foreign Currency**

Rail International's reported results of operations are impacted by fluctuations in the exchange rates of the U.S. dollar versus the foreign currencies in which it conducts business, primarily the euro. In 2022, fluctuations in the value of the euro, relative to the U.S. dollar, negatively impacted lease revenue by approximately $27.5 million and segment profit, excluding other income (expense), by approximately $13.8 million compared to 2021.

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**Segment Profit** 

In 2022, segment profit of $85.9 million decreased 18.2% compared to $105.0 million in 2021. Segment profit in 2022 included a $14.6 million impairment charge recorded as a result of the decision to exit the Rail Russia business. Excluding this impairment, results for Rail International were $4.5 million lower than 2021. The decrease was primarily due to changes in foreign exchange rates, partially offset by more railcars on lease.

**Revenues**

In 2022, lease revenue decreased $6.7 million, or 2.5%, due to the impact of foreign exchange rates, partially offset by more railcars on lease at GRE and Rail India. Other revenue decreased $2.3 million, driven by lower repair revenue and the impact of foreign exchange rates.

**Expenses**

In 2022, maintenance expense decreased $6.2 million, primarily due to the impact of foreign exchange rates. Depreciation expense decreased $4.5 million, as the impact of foreign exchange rates more than offset the impact of new railcars added to the fleet.

**Other Income (Expense)**

In 2022, net gain on asset dispositions decreased $13.9 million, driven by the impairment recorded as a result of the decision to exit the Rail Russia business. Other (expense) income was unfavorable $7.2 million, driven by the negative impact of changes in foreign exchange rates and higher litigation costs.

**Investment Volume**

During 2022, investment volume was $243.9 million, compared to $173.3 million in 2021. During 2022, GRE acquired 1,211 railcars (including 275 assembled at the GRE Ostróda, Poland facility) and Rail India acquired 1,042 railcars, compared to 1,131 railcars at GRE (including 335 assembled at the GRE Ostróda, Poland facility) and 715 railcars at Rail India in 2021.

Our investment volume is predominantly composed of acquired railcars, but may also include certain capitalized repairs and improvements to owned railcars. As a result, the dollar value of investment volume does not necessarily correspond to the number of railcars acquired in any given period. In addition, the comparability of amounts invested and the number of railcars acquired in each period is impacted by the mix of the various railcar types acquired, as well as fluctuations in the exchange rates of the foreign currencies in which Rail International conducts business.

***PORTFOLIO MANAGEMENT***

**Segment Summary** 

Portfolio Management's segment profit is attributable primarily to income from the RRPF affiliates, a group of 50% owned domestic and foreign joint ventures with Rolls-Royce plc (or affiliates thereof, collectively "Rolls-Royce"), a leading manufacturer of commercial aircraft jet engines. Segment profit included earnings from the RRPF affiliates of $45.4 million for 2022, $56.5 million for 2021, and $95.5 million for 2020. In 2022, RRPF terminated leases for three aircraft spare engines leased to a Russian airline. The Russian government is prohibiting these engines from leaving the country; therefore, RRPF recorded an impairment charge associated with these three engines. GATX's 50% share of this net impairment was $15.3 million ($11.5 million after tax). Portfolio Management did not make any additional investment in the RRPF affiliates in 2022 or 2021. Dividend distributions from the RRPF affiliates totaled $46.2 million in 2022. There were no distributions in 2021.

While global air travel has improved in 2022, the operating environment for RRPF continued to be impacted by the ongoing adverse effects of COVID-19 and the uncertainty due to the Russia/Ukraine conflict.

Portfolio Management also includes GEL, our wholly owned entity that invests directly in aircraft spare engines. In 2021, GEL acquired 14 aircraft spare engines for approximately $352 million, including four engines for $120 million from the RRPF affiliates. In 2022, GEL acquired five aircraft spare engines for approximately $150 million, which are employed in an engine capacity agreement with Rolls-Royce for use in its engine maintenance programs. All engines are managed by the RRPF affiliates.

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Portfolio Management also has the Specialized Gas Vessels that are utilized to transport pressurized gases and chemicals, such as liquefied petroleum gas and ethylene, primarily on short- and medium-term spot contracts for major oil and chemical customers worldwide. In 2022, we made the decision to sell the Specialized Gas Vessels. We believe selling these vessels will better align our strategic focus. As a result of this decision, we classified the Specialized Gas Vessels as held for sale and recorded impairment losses of $34.3 million in the current year. We sold two of the vessels in 2022, and the three remaining vessels continue to be classified as held for sale as of December 31, 2022.

Portfolio Management's total asset base was $1,106.6 million at December 31, 2022, compared to $1,048.7 million at December 31, 2021.

The following table shows Portfolio Management's segment results for the years ended December 31 (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| **Revenues** |  |  |  |
| Lease revenue | $33.0 | $28.1 | $0.8 |
| Marine operating revenue | 18.9 | 19.1 | 15.6 |
| Other revenue | 1.7 | 0.5 | 0.6 |
| **Total Revenues** | 53.6 | 47.7 | 17.0 |
| **Expenses** |  |  |  |
| Marine operating expense | 14.1 | 17.5 | 19.7 |
| Depreciation expense | 17.8 | 17.6 | 5.3 |
| Other operating expense | 2.3 | 1.7 | 0.5 |
| **Total Expenses** | 34.2 | 36.8 | 25.5 |
| **Other Income (Expense)** |  |  |  |
| Net (loss) gain on asset dispositions | (31.1) | 8.0 | 2.2 |
| Interest expense, net | (19.0) | (16.6) | (12.2) |
| Other income |  | 2.0 |  |
| Share of affiliates' pre-tax earnings | 45.4 | 56.5 | 95.9 |
| **Segment Profit** | $14.7 | $60.8 | $77.4 |
| **Investment Volume** | $149.7 | $353.0 | $0.5 |

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The following table shows the net book value of Portfolio Management's assets as of December 31 (in millions):

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| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Investment in RRPF Affiliates | $574.3 | $588.1 |
| GEL owned aircraft spare engines | 475.0 | 340.4 |
| Specialized Gas Vessels | 25.1 | 103.6 |
| Other owned assets | 32.2 | 16.6 |
| Managed assets (1) | 2.3 | 9.8 |

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________

(1) Amounts shown represent the estimated net book value of assets managed for third parties and are not included in our consolidated balance sheets.

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**RRPF Affiliates Engine Portfolio Data**

As of December 31, 2022, the RRPF affiliates' portfolio consisted of 398 aircraft spare engines with a net book value of $4,176.5 million, compared to 407 aircraft spare engines with a net book value of $4,399.9 million at the end of 2021.

The following table shows portfolio activity for the RRPF affiliates' aircraft spare engines for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Beginning balance | 407 | 445 | 478 |
| Engine acquisitions | 9 | 5 | 20 |
| Engine dispositions | (18) | (43) | (53) |
| Ending balance | 398 | 407 | 445 |
| Utilization rate at year end (1) | 94.2% | 94.3% | 92.8% |
| Average leased engines (2) | 372 | 400 | 439 |

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________

(1) Utilization is calculated as the number of engines on lease as a percentage of total engines in the fleet.

(2) Average leased engines for the year is calculated using the number of leased engines at the end of each month.

![gmt-20221231_g8.jpg](gmt-20221231_g8.jpg)

***Comparison of Reported Results***

**Segment Profit**

In 2022, segment profit was $14.7 million compared to $60.8 million in 2021. Segment profit in 2022 included $34.3 million of impairment charges recorded as a result of the decision to sell the Specialized Gas Vessels and a $15.3 million net impairment charge (GATX's 50% share) for aircraft spare engines in Russia that RRPF does not expect to recover. Excluding these losses, results for Portfolio Management were $3.5 million higher than 2021, driven by higher share of affiliates' earnings at the RRPF affiliates.

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**Revenues**

In 2022, lease revenue was $33.0 million compared to $28.1 million in 2021, due to a full year of operations at GEL for engines acquired in 2021. Marine operating revenue decreased $0.2 million, driven by the absence of revenue from the Specialized Gas Vessels sold in 2022, offset by higher utilization and charter rates from Specialized Gas Vessels throughout the year.

**Expenses**

&nbsp;&nbsp;&nbsp;&nbsp;

In 2022, marine operating expense decreased $3.4 million, due to the absence of expenses from the two Specialized Gas Vessels sold in 2022, offset by higher repairs and maintenance costs.

**Other Income (Expense)**

In 2022, net (loss) gain on asset dispositions was unfavorable by $39.1 million, driven by the impairment charges recorded as a result of the decision to sell the Specialized Gas Vessels and lower residual sharing gains on managed portfolio sales in the current year.

In 2022, income from our share of affiliates' earnings decreased $11.1 million, driven by the impairment charge on aircraft spare engines in Russia that RRPF does not expect to recover. Absent this, financial results were higher in 2022, due to higher income from operations.

**Investment Volume**

Investment volume was $149.7 million in 2022, compared to $353.0 million in 2021. GEL acquired five aircraft spare engines in 2022, compared to 14 aircraft spare engines in 2021.

***OTHER***

Other comprises our Trifleet Leasing business, as well as selling, general and administrative expenses ("SG&A"), unallocated interest expense, miscellaneous income and expense not directly associated with the reporting segments, and certain eliminations.

On December 29, 2020, GATX acquired Trifleet Leasing, one of the largest tank container lessors in the world. See "Note 4. Business Combinations" in Part II, Item 8 of this Form 10-K for additional information.

In 2022, GATX executed a multi-party amended and restated settlement agreement related to its share of estimated environmental remediation costs to be incurred at a previously owned facility that was sold in 1974. This agreement establishes GATX's share of responsibility for future costs required to complete the remediation and closure of the site. As a result, GATX recorded a $5.9 million expense to establish a reserve for its share of the remaining anticipated remediation and related costs.

The following table shows components of Other for the years ended December 31 (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Trifleet Leasing revenue | $36.1 | $33.7 | $— |
| Trifleet Leasing segment profit | $13.8 | $10.2 | $— |
| Unallocated interest income (expense) | 1.1 | (0.5) | 7.7 |
| Other (expense) income, including eliminations | (18.8) | (11.0) | (3.1) |
| **Segment (Loss) Profit** | $(3.9) | $(1.3) | $4.6 |
| Selling, general and administrative expense | $195.0 | $198.3 | $172.0 |

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**Trifleet Leasing Summary**

The tank container leasing market was strong in 2022 and demand for tank containers was robust. Utilization increased to 93.1% at December 31, 2022.

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**Trifleet Leasing Tank Container Data**

The following table shows fleet statistics for Trifleet Leasing's tank containers for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Ending balance - owned and managed | 21999 | 19996 | 19031 |
| Utilization rate at year-end - owned and managed (1) | 93.1% | 89.2% | 80.2% |

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_______

(1) Utilization is calculated as the number of tank containers on lease as a percentage of total tank containers in the fleet.

**SG&A, Unallocated Interest and Other** 

SG&A decreased $3.3 million in 2022, driven by lower employee compensation expenses, including lower share-based compensation expense, and the impact of foreign exchange rates, partially offset by higher discretionary expenses and information technology costs.

Unallocated interest income (expense) (the difference between external interest expense and interest expense allocated to the reporting segments) in any year is affected by our consolidated leverage position, the timing of debt issuances and investing activities, and intercompany allocations.

In 2022, other (expense) income, including eliminations, increased $7.8 million compared to 2021, driven by higher pension-related expenses, including a settlement charge recorded during the current year, and higher environmental remediation costs, partially offset by the absence of the write-off of unamortized deferred financing costs associated with the early redemption of debt in the prior year.

**Consolidated Income Taxes**

See "Note 13. Income Taxes" in Part II, Item 8 of this Form 10-K for additional information on income taxes.

**CHANGE IN NET OPERATING ASSETS AND FACILITIES**

The following table shows changes in the net operating assets and facilities as of December 31 (in millions):

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| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Beginning balance | $7784.8 | $7170.7 |
| Investments | 1215.5 | 1115.2 |
| Purchase of assets previously leased | 1.5 | 86.8 |
| Depreciation expense | (365.0) | (371.6) |
| Asset dispositions | (130.9) | (145.2) |
| Transfers to assets held for sale | (116.0) | (9.8) |
| Foreign exchange rate effects | (111.7) | (117.4) |
| Other | (27.9) | 56.1 |
| Ending balance | $8250.3 | $7784.8 |

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**CASH FLOW DISCUSSION**

We generate a significant amount of cash from operating activities and investment portfolio proceeds. We also access domestic and international capital markets by issuing unsecured or secured debt and commercial paper. We use these resources, along with available cash balances, to fulfill our debt, lease, and dividend obligations, to support our share repurchase programs, and to fund portfolio investments and capital additions. We primarily use cash from operations to fund daily operations. The timing of asset dispositions and changes in working capital impact cash flows from portfolio proceeds and operations. As a result, these cash flow components may vary materially from year to year.

As of December 31, 2022, we had an unrestricted cash balance of $303.7 million and investments in short-term U.S. Treasury Obligations of $148.5 million. We also have a $250 million 3-year unsecured revolving credit facility in the United States that matures in 2025 and a $600 million, 5-year unsecured revolving credit facility in the United States that matures in 2027, both of which were fully available as of December 31, 2022.

The following table shows our cash flows from operating, investing and financing activities for the years ended December 31 (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| &nbsp;&nbsp;Net Cash Provided by Operating Activities | $533.5 | $507.2 | $436.8 |
| &nbsp;&nbsp;Net Cash Used in Investing Activities | (1073.5) | (917.7) | (904.9) |
| &nbsp;&nbsp;Net Cash Provided by Financing Activities | 504.4 | 463.1 | 355.6 |
| &nbsp;&nbsp;Effect of Exchange Rate Changes on Cash and Cash Equivalents | (4.9) | (1.8) | (0.1) |
| &nbsp;&nbsp;Net Cash Provided by Discontinued Operations |  | 1.1 | 254.2 |
| &nbsp;&nbsp;Net (decrease) increase in Cash, Cash Equivalents, and Restricted Cash during the year | $(40.5) | $51.9 | $141.6 |

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***Net Cash Provided by Operating Activities***

Net cash provided by operating activities of $533.5 million increased $26.3 million compared to 2021. Comparability among reporting periods is impacted by the timing of changes in working capital items. Specifically, lower cash payments for operating leases and higher affiliate dividends received in the current year were partially offset by higher cash payments for income taxes, interest, and other operating expenses.

***Net Cash Used in Investing Activities***

The following table shows our principal sources and uses of cash flows from investing activities for the years ended December 31 (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| &nbsp;&nbsp;Portfolio Investments and Capital Additions (1) | $(1255.8) | $(1131.9) | $(1064.0) |
| &nbsp;&nbsp;Portfolio Proceeds (2) | 269.6 | 187.1 | 131.1 |
| &nbsp;&nbsp;Other Investing Activity | (87.3) | 27.1 | 28.0 |
| &nbsp;&nbsp;Net Cash Used in Investing Activities | $(1073.5) | $(917.7) | $(904.9) |

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_______

(1) Portfolio investments and capital additions primarily consist of purchases of operating assets and capitalized asset improvements.

(2) Portfolio proceeds primarily consist of proceeds from sales of operating assets.

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The following table shows portfolio investments and capital additions by segment for the years ended December 31 (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Rail North America | $815.9 | $574.4 | $642.0 |
| Rail International | 243.9 | 173.3 | 216.0 |
| Portfolio Management | 149.7 | 353.0 | 0.5 |
| Other | 46.3 | 31.2 | 205.5 |
| Total | $1255.8 | $1131.9 | $1064.0 |

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The increase in portfolio investments and capital additions of $123.9 million in the year ended December 31, 2022 is primarily due to more railcars acquired at Rail North America and Rail International and more tank containers acquired at Trifleet Leasing, partially offset by fewer aircraft spare engines acquired at GEL. The timing of investments depends on purchase commitments, transaction opportunities, and market conditions.

The following table shows portfolio proceeds for the years ended December 31 (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Proceeds from sales of operating assets | $269.6 | $181.1 | $123.6 |
| Capital distributions and proceeds related to affiliates |  |  | 0.5 |
| Other |  | 6.0 | 7.0 |
| Total | $269.6 | $187.1 | $131.1 |

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The increase in portfolio proceeds of $82.5 million in the year ended December 31, 2022 compared to the year ended December 31, 2021 is primarily due to proceeds from the sale of two Specialized Gas Vessels at Portfolio Management and more railcars sold at Rail North America.

The following table shows other investing activity for the years ended December 31 (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Proceeds from sales of other assets (1) | $31.1 | $54.7 | $26.0 |
| Short-term investments (2) | (148.5) |  |  |
| Other | 30.1 | (27.6) | 2.0 |
| Total | $(87.3) | $27.1 | $28.0 |

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________

(1) Proceeds from sales of other assets for all periods were primarily related to railcar scrapping.

(2) Acquisition of short-term U.S. Treasury Obligations with an original maturity date of over 90 days.

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***Net Cash Provided by (Used in) Financing Activities***

The following table shows net cash provided by (used in) financing activities for the years ended December 31 (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Net proceeds from issuances of debt (original maturities longer than 90 days) (3) | $848.3 | $1491.9 | $1586.5 |
| Repayments of debt (original maturities longer than 90 days) (3) | (250.0) | (884.0) | (1100.0) |
| Net increase (decrease) in debt with original maturities of 90 days or less |  | (4.1) | 6.4 |
| Purchases of assets previously leased (1) | (1.5) | (77.2) | (40.0) |
| Stock repurchases (2) | (47.2) | (13.1) |  |
| Dividends | (76.6) | (74.3) | (71.0) |
| Other | 31.4 | 23.9 | (26.3) |
| Total | $504.4 | $463.1 | $355.6 |

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________

(1) In 2022, we purchased 21 railcars that were previously leased, compared to 2,329 railcars in 2021.

(2) During 2022, we repurchased 0.5 million shares of common stock for $47.2 million, compared to 0.1 million shares of common stock repurchased for $13.1 million in 2021.

(3) In 2022, we issued long-term debt of $860.7 million for net proceeds of $848.3 million, and made principal payments of $250.0 million.

The following table shows the details of our long-term debt issuances in 2022 ($ in millions):

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| | | | |
|:---|:---|:---|:---|
| **Type of Debt** | **Term** | **Interest Rate** | **Principal Amount** |
| Recourse Unsecured | 10 years | 3.5% Fixed | $400.0 |
| Recourse Unsecured | 10 years | 4.9% Fixed | 400.0 |
| Recourse Unsecured | 7 years | 6.7% Floating (2) | 50.0 |
| Recourse Unsecured (1) | 5 years | 3.7% Floating (2) | 10.7 |
|  |  |  | $860.7 |

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________

(1) Denominated in euros, but presented in U.S. dollars in this table. In 2022, we increased our existing €100 million term loan in Europe to €110 million and extended the loan for five years, while converting from a fixed rate to a EURIBOR based floating rate.

(2) Floating interest rate at December 31, 2022.

**LIQUIDITY AND CAPITAL RESOURCES**

***General***

We fund our investments and meet our debt, lease, and dividend obligations using our available cash balances, as well as cash generated from operating activities, sales of assets, commercial paper issuances, committed revolving credit facilities, distributions from affiliates, and issuances of secured and unsecured debt. We primarily use cash from operations to fund daily operations. We use both domestic and international capital markets and banks to meet our debt financing needs.

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***Material Cash Obligations***

The following table shows our material cash obligations, including debt principal and related interest payments, lease payments, and purchase commitments at December 31, 2022 (in millions):

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Material Cash Obligations by Period** | **Material Cash Obligations by Period** | **Material Cash Obligations by Period** | **Material Cash Obligations by Period** | **Material Cash Obligations by Period** | **Material Cash Obligations by Period** | **Material Cash Obligations by Period** |
| | **Total** | **2023** | **2024** | **2025** | **2026** | **2027** | **Thereafter** |
| Recourse debt | $6492.2 | $500.0 | $519.5 | $514.1 | $454.9 | $417.8 | $4085.9 |
| Interest on recourse debt (1) | 2156.0 | 235.3 | 206.4 | 192.2 | 186.3 | 168.2 | 1167.6 |
| Commercial paper and credit facilities | 17.3 | 17.3 |  |  |  |  |  |
| Operating lease obligations | 298.0 | 41.0 | 38.9 | 36.2 | 44.8 | 38.7 | 98.4 |
| Purchase commitments (2) | 2720.6 | 865.0 | 403.8 | 330.6 | 334.4 | 337.9 | 448.9 |
| Total | $11684.1 | $1658.6 | $1168.6 | $1073.1 | $1020.4 | $962.6 | $5800.8 |

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__________

(1) For floating rate debt, future interest payments are based on the applicable interest rate as of December 31, 2022.

(2) Primarily railcar purchase commitments. The amounts shown for all years are based on management's estimates of the timing, anticipated car types, and related costs of railcars to be purchased under its agreements. For additional details on our purchase agreements, refer to the discussion of Rail North America operating results within this section.

***2023 Liquidity Outlook***

In addition to our contractual obligations, expenditures in 2023 may also include the purchase of railcars, tank containers, and aircraft spare engines and other discretionary capital spending for opportunistic asset purchases or strategic investments. We plan to fund these expenditures in 2023 using available cash at December 31, 2022 in combination with cash from operations, portfolio proceeds, and long-term debt issuances. We also have access to our revolving credit facilities if needed.

***Contractual Cash Receipts***

Information regarding our contractual cash receipts arising from future rental receipts from noncancelable operating leases and from our finance leases as of December 31, 2022 is presented in "Note 6. Leases" within Item 8 of this Form 10-K.

***Debt***

The following table shows the carrying value of our debt and lease obligations by major component as of December 31 (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2021** |
| | **Secured** | **Unsecured** | **Total** | **Total** |
| Commercial paper and borrowings under bank credit facilities | $— | $17.3 | $17.3 | $18.1 |
| Recourse debt |  | 6431.5 | 6431.5 | 5887.5 |
| Operating lease obligations | 257.9 |  | 257.9 | 286.2 |
| Finance lease obligations |  |  |  | 1.5 |
| Total | $257.9 | $6448.8 | $6706.7 | $6193.3 |

---

As of December 31, 2022, our outstanding debt had a weighted-average remaining term of 8.6 years and a weighted-average interest rate of 3.72%, compared to 9.0 years and 3.79% at December 31, 2021. See "Note 8. Debt" in Part II, Item 8 of this Form 10-K.

***Short-Term Borrowings***

We primarily use short-term borrowings as a source of working capital and to temporarily fund differences between our operating cash flows and portfolio proceeds, and our capital investments and debt maturities. We do not maintain or target any particular level of short-term borrowings on a permanent basis. Rather, we will temporarily utilize short-term borrowings at levels we deem appropriate until we decide to pay down these balances.

------

The following table shows additional information regarding our short-term borrowings:

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| | | | |
|:---|:---|:---|:---|
| | **Europe (1)** | **Europe (1)** | **Europe (1)** |
| | **2022** | **2021** | **2020** |
| Balance as of December 31 (in millions) | $17.3 | $18.1 | $23.6 |
| Weighted-average interest rate | 2.7% | 0.8% | 0.9% |
| Euro/dollar exchange rate | 1.07 | 1.14 | 1.23 |
| Average daily amount outstanding during year (in millions) | $18.2 | $20.2 | $18.5 |
| Weighted-average interest rate | 1.2% | 0.9% | 0.8% |
| Average euro/dollar exchange rate | 1.05 | 1.18 | 1.14 |
| Average daily amount outstanding during 4<sup>th</sup> quarter (in millions) | $18.3 | $20 | $21.1 |
| Weighted-average interest rate | 2.1% | 0.9% | 0.9% |
| Average euro/dollar exchange rate | 1.02 | 1.14 | 1.19 |
| Maximum daily amount outstanding (in millions) | $27.6 | $34.2 | $35.8 |
| Euro/dollar exchange rate | 1.14 | 1.22 | 1.18 |

---

__________

(1)Short-term borrowings in Europe are composed of borrowings under bank credit facilities.

***Credit Lines and Facilities***

We have a $600 million, 5-year unsecured revolving credit facility in the United States. In 2022, we entered into an amendment, which extended the maturity on this facility by one year from May 2026 to May 2027 and replaced LIBOR with Term SOFR. This credit facility contains one additional extension option. As of December 31, 2022, the full $600 million was available under this facility. Additionally, we have a $250 million 3-year unsecured revolving credit facility in the United States. In 2022, we also entered into an amendment to this facility to extend the maturity by one year from May 2024 to May 2025 and to replace LIBOR with Term SOFR. This credit facility contains one additional extension option as well. As of December 31, 2022, the full $250 million was available under this facility.

Our European subsidiaries have unsecured credit facilities with an aggregate limit of €35.0 million. As of December 31, 2022, €18.9 million was available under these credit facilities.

***Delayed Draw Term Loans***

On September 12, 2022, we executed a delayed draw term loan agreement in India which provided for a 5-year unsecured term loan in the aggregate principal amount of up to 2.3 billion Indian Rupees ($27.8 million as of December 31, 2022). Advances are allowed through March 31, 2023 pursuant to the terms of the agreement and any amounts borrowed and repaid may not be re-borrowed. The amounts borrowed under the loan agreement are required to be repaid no later than five years from the first drawdown date. As of December 31, 2022, no amount was drawn on this loan.

On December 14, 2020, we executed a delayed draw term loan agreement ("Term Loan") which provided for a 3-year term loan in the aggregate principal amount of up to $500 million. Advances were allowed from December 14, 2020 through April 17, 2021 pursuant to the terms of the agreement and any amounts borrowed and repaid could not be re-borrowed. The amounts borrowed under the Term Loan agreement are required to be repaid no later than December 14, 2023. In 2021, we drew $384 million on the Term Loan, terminated the remaining unused commitment of $116 million, and subsequently repaid $134 million of the outstanding amount. As of December 31, 2022, $250 million was drawn on the Term Loan.

***Restrictive Covenants***

Our credit facilities and certain other debt agreements contain various restrictive covenants. See "Note 8. Debt" in Part II, Item 8 of this Form 10-K.

------

***Credit Ratings***

The global capital market environment and outlook may affect our funding options and our financial performance. Our access to capital markets at competitive rates depends on our credit rating and rating outlook, as determined by rating agencies. As of December 31, 2022, our long-term unsecured debt was rated BBB by Standard & Poor's and Baa2 by Moody's Investor Service and our short-term unsecured debt was rated A-2 by Standard & Poor's and P-2 by Moody's Investor Service. Our rating outlook from both agencies was stable. In January 2023, Fitch Ratings, Inc. assigned our long-term unsecured debt a rating of BBB+ and our short-term unsecured debt a rating of F-2. Our rating outlook was stable.

***Leverage***

Leverage is expressed as a ratio of debt (including debt and lease obligations, net of unrestricted cash and short-term investments) to equity. The following table shows the components of recourse leverage as of December 31 (in millions, except recourse leverage ratio):

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Debt and lease obligations, net of unrestricted cash and short-term investments: |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrestricted cash and short-term investments | $(452.2) | $(344.3) | $(292.2) |
| &nbsp;&nbsp;&nbsp;Commercial paper and bank credit facilities | 17.3 | 18.1 | 23.6 |
| &nbsp;&nbsp;&nbsp;Recourse debt | 6431.5 | 5887.5 | 5329.0 |
| &nbsp;&nbsp;&nbsp;Operating lease obligations | 257.9 | 286.2 | 348.6 |
| &nbsp;&nbsp;&nbsp;Finance lease obligations |  | 1.5 | 33.3 |
| Total debt and lease obligations, net of unrestricted cash and short-term investments | $6254.5 | $5849.0 | $5442.3 |
| Total recourse debt (1) | $6254.5 | $5849.0 | $5442.3 |
| Shareholders' Equity | $2029.6 | $2019.2 | $1957.4 |
| Recourse Leverage (2) | 3.1 | 2.9 | 2.8 |

---

________

(1) Includes recourse debt, commercial paper and bank credit facilities, and operating and finance lease obligations, net of unrestricted cash and short-term investments.

(2) Calculated as total recourse debt / shareholders' equity.

***Shelf Registration Statement***

During 2022, we filed an automatic shelf registration statement that enables us to issue debt securities and pass-through certificates. The registration statement is effective for three years and does not limit the amount of debt securities and pass-through certificates we can issue.

***Commercial Commitments***

We have entered into various commercial commitments, including standby letters of credit, performance bonds, and guarantees 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.

We are 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. We also guarantee payment by an affiliate for final settlement of certain derivatives if they are in a liability position at expiration. The amount of the payment is ultimately determined by the value of the derivative upon final settlement.

&nbsp;&nbsp;&nbsp;&nbsp;

Our commercial commitments at December 31, 2022 are presented in "Note 15. Commercial Commitments" within Item 8 of this Annual Report.

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***Defined Benefit Plan Contributions***

In 2022, we contributed $16.2 million to our defined benefit pension plans and other post-retirement benefit plans. In 2023, we expect to contribute approximately $7.6 million. As of December 31, 2022, our funded pension plans in the aggregate were 102.6% funded. Additional contributions will depend primarily on plan asset investment returns and actuarial experience, and subject to the impact of these factors, we may make additional material plan contributions.

***GATX Common Stock Repurchases***

On January 25, 2019, our board of directors approved a $300.0 million share repurchase program, pursuant to which we are authorized to purchase shares of our common stock in the open market, in privately negotiated transactions, or otherwise, including pursuant to Rule 10b5-1 plans. The share repurchase program does not have an expiration date, does not obligate the Company to repurchase any dollar amount or number of shares of common stock, and may be suspended or discontinued at any time. The timing of share repurchases will be dependent on market conditions and other factors. During 2022, we repurchased 0.5 million shares of common stock for $47.2 million, excluding commissions, compared to 0.1 million shares repurchased for $13.1 million, excluding commissions, in 2021. As of December 31, 2022, $89.6 million remained available under the repurchase authorization.

**CRITICAL ACCOUNTING POLICIES AND ESTIMATES**

We prepare our consolidated financial statements in conformity with GAAP, which requires us to use judgment in making estimates and assumptions that affect reported amounts of assets, liabilities, revenues, and expenses, as well as information in the related disclosures. We regularly evaluate our estimates and judgments based on historical experience, market indicators, and other relevant factors and circumstances. Actual results may differ from these estimates under different assumptions or conditions.

***Operating Assets***

We state operating assets, including assets acquired under finance leases, at cost and depreciate them over their estimated economic useful lives to an estimated residual value using the straight-line method. We determine the economic useful life based on our estimate of the period over which the asset will generate revenue. For the majority of our operating assets, the economic useful life is greater than 30 years. The residual values are based on historical experience and economic factors. We periodically review the appropriateness of our estimates of useful lives and residual values based on changes in economic circumstances and other factors. Changes in these estimates would result in a change in future depreciation expense.

***Lease Classification***

We analyze all new and modified leases to determine whether we should classify the lease as an operating or finance lease. Our lease classification analysis relies on certain assumptions that require judgment, such as the asset's fair value, the asset's estimated residual value, the interest rate implicit in the lease, and the asset's economic useful life. While most of our leases are classified as operating leases, changes in the assumptions we use could result in a different lease classification, which could change the impacts of the lease transactions on our results of operations and financial position. See "Note 6. Leases" in Part II, Item 8 of this Form 10-K.

***Impairment of Long-Lived Assets***

We review long-lived assets, such as operating assets, right-of-use assets, and facilities, for impairment annually, or whenever circumstances indicate that the carrying amount of those assets may not be recoverable. We evaluate the recoverability of assets to be held and used by comparing the carrying amount of the asset to the undiscounted future net cash flows we expect the asset to generate. We base estimated future cash flows on a number of assumptions, including lease rates, lease term (including renewals), freight rates and volume, operating costs, the life of the asset, and final disposition proceeds. If we determine an asset is impaired, we recognize an impairment loss equal to the amount by which the carrying amount exceeds the asset's fair value. We classify assets we plan to sell or otherwise dispose of as held for sale, provided they meet specified accounting criteria, and we record those assets at the lower of their carrying amount or fair value less costs to sell. See "Note 10. Asset Impairments and Assets Held for Sale" in Part II, Item 8 of this Form 10-K.

------

***Impairment of Investments in Affiliated Companies***

We review the carrying amount of our investments in affiliates annually, or whenever circumstances indicate that their value may have declined. If management determines that indicators of impairment are present for an investment, we perform an analysis to estimate the fair value of that investment. Active markets do not typically exist for our affiliate investments and as a result, we may estimate fair value using a discounted cash flow analysis at the investee level, price-earnings ratios based on comparable businesses, or other valuation techniques that are appropriate for the particular circumstances of the affiliate. For all fair value estimates, we use observable inputs whenever possible and appropriate.

Once we make an estimate of fair value, we compare the estimate of fair value to the investment's carrying value. If the investment's estimated fair value is less than its carrying value, then we consider the investment impaired. If an investment is impaired, we assess whether the impairment is other-than-temporary. We consider factors such as the expected operating results for the near future, the length of the economic life cycle of the underlying assets of the investee, and our ability to hold the investment through the end of the underlying assets' useful life to determine if the impairment is other-than-temporary. We may also consider actions we anticipate the investee will take to improve its business prospects if it seems probable the investee will take those actions. If we determine an investment to be only temporarily impaired, we do not record an impairment loss. Alternatively, if we determine an impairment is other-than-temporary, we record a loss equal to the difference between the estimated fair value of the investment and its carrying value. See "Note 7. Investments in Affiliated Companies."

***Impairment of Goodwill***

We review the carrying amount of our goodwill annually, or if circumstances indicate an impairment may have occurred. We perform the impairment review at the reporting unit level, which is one level below an operating segment. The goodwill impairment test performed is a two-tiered approach and requires us to make certain judgments to determine the assumptions we use in the calculation. We first complete a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit exceeds its carrying value. If necessary, the fair value is then compared to its carrying value, including goodwill. When estimating the fair value of the reporting unit, we use a discounted cash flow model and base our estimates of future cash flows on revenue and expense forecasts and include assumptions for future growth. We also consider observable multiples of book value and earnings for companies that we believe are comparable to the applicable reporting units. If the estimated fair value is less than the carrying amount, we record an impairment loss for the difference. See "Note 17. Goodwill" in Part II, Item 8 of this Form 10-K.

***Pension and Post-Retirement Benefits Assumptions***

We use actuarial assumptions to calculate pension and other post-retirement benefit obligations and related costs. The discount rate and the expected return on plan assets are two assumptions that influence the plan expense and liability measurement. Other assumptions involve demographic factors such as expected retirement age, mortality, employee turnover, health care cost trends, and the rate of compensation increases.

We use a discount rate to calculate the present value of expected future pension and post-retirement cash flows as of the measurement date. The discount rate is based on yields for high-quality, long-term bonds with durations similar to the projected benefit obligation. We base the expected long-term rate of return on plan assets on current and expected asset allocations, as well as historical and expected returns on various categories of plan assets. We evaluate these assumptions annually and make adjustments as required in accordance with changes in underlying market conditions, valuation of plan assets, or demographics. Changes in these assumptions may increase or decrease periodic benefit plan expense as well as the carrying value of benefit plan obligations. See "Note 11. Pension and Other Post-Retirement Benefits" in Part II, Item 8 of this Form 10-K.

***Share-Based Compensation***

We grant equity awards to certain employees and non-employee directors in the form of non-qualified stock options, stock appreciation rights, restricted stock, performance shares, and phantom stock. We recognize compensation expense for our equity awards over the applicable service period for each award, based on the award's grant date fair value. We use the Black-Scholes options valuation model to calculate the grant date fair value of stock options and stock appreciation rights. This model requires us to make certain assumptions that affect the amount of compensation expense we will record. The assumptions we use in the model include the expected stock price volatility (based on the historical volatility of our stock price), the risk-free interest rate (based on the treasury yield curve), the expected life of the equity award (based on historical exercise patterns and post-vesting termination behavior), and the dividend equivalents we expect to pay during the estimated life of the equity award since our stock options and stock appreciation rights are dividend participating. We base the fair value of other equity awards on our stock price on the grant date. We recognize forfeitures when they occur. See "Note 12. Share-Based Compensation" in Part II, Item 8 of this Form 10-K.

------

***Income Taxes***

Our operations are subject to taxes in the United States, various states, and foreign countries, and as a result, we may be subject to audit in all of these jurisdictions. Tax audits may involve complex issues and disagreements with taxing authorities that could require several years to resolve. GAAP requires that we presume the relevant tax authority will examine uncertain income tax positions. We must determine whether, based on the technical merits of our position, it is more likely than not that our uncertain income tax positions will be sustained by taxing authorities upon examination, which may include related appeals or litigation processes. We must then evaluate income tax positions that meet the "more likely than not" recognition threshold to determine the probable amount of benefit we would recognize in the financial statements. Establishing accruals for uncertain tax benefits requires us to make estimates and assessments with respect to the ultimate outcome of tax audit issues for amounts recorded in the financial statements. The ultimate resolution of uncertain tax benefits may differ from our estimates, potentially impacting our financial position, results of operations, or cash flows.

We evaluate the need for a deferred tax asset valuation allowance by assessing the likelihood that we will realize tax assets, including net operating loss and tax credit carryforward benefits. Our assessment of whether a valuation allowance is required involves judgment, including forecasting future taxable income and evaluating tax planning initiatives, if applicable.

We expect to continue to reinvest foreign earnings outside the United States indefinitely. If future earnings are repatriated to the United States, or if we expect such earnings to be repatriated, a provision for additional taxes may be required. Under provisions of the territorial tax system, repatriated earnings are generally exempt from United States income taxation, however, incremental income taxes may occur from withholding taxes, foreign exchange gains, or other taxable gains recognized in connection with tax basis differences in our foreign investments. The ultimate tax cost of repatriating such earnings will depend on tax laws in effect and other circumstances at that time. See "Note 13. Income Taxes" in Part II, Item 8 of this Form 10-K.

**NEW ACCOUNTING PRONOUNCEMENTS**

See "Note 2. Accounting Changes" in Part II, Item 8 of this Form 10-K for a summary of new accounting pronouncements that may impact our business.

**NON-GAAP FINANCIAL MEASURES**

**&nbsp;&nbsp;&nbsp;&nbsp;**

In addition to financial results reported in accordance with GAAP, we compute certain financial measures using non-GAAP components, as defined by the SEC. These measures are not in accordance with, or a substitute for, GAAP, and our financial measures may be different from non-GAAP financial measures used by other companies. We have provided a reconciliation of our non-GAAP components to the most directly comparable GAAP components.

**Reconciliation of Non-GAAP Components Used in the Computation of Certain Financial Measures** 

***Net Income Measures***

We exclude the effects of certain tax adjustments and other items for purposes of presenting net income, diluted earnings per share, and return on equity because we believe these items are not attributable to our business operations. Management utilizes net income, excluding tax adjustments and other items, when analyzing financial performance because such amounts reflect the underlying operating results that are within management's ability to influence. Accordingly, we believe presenting this information provides investors and other users of our financial statements with meaningful supplemental information for purposes of analyzing year-to-year financial performance on a comparable basis and assessing trends.

The following tables show our net income, diluted earnings per share, and return on equity, excluding tax adjustments and other items for the years ended December 31 (in millions, except per share data):

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---

| | | | |
|:---|:---|:---|:---|
| **Impact of Tax Adjustments and Other Items on Net Income:** | | | |
|  | **2022** | **2021** | **2020** |
| Net income (GAAP) | $155.9 | $143.1 | $151.3 |
| Less: Net income from discontinued operations (GAAP) |  |  | 1.1 |
| Net income from continuing operations (GAAP) | $155.9 | $143.1 | $150.2 |
| Adjustments attributable to pre-tax income from continuing operations: |  |  |  |
| &nbsp;&nbsp;&nbsp;Rail Russia impairment at Rail International (1) | $14.6 | $— | $— |
| &nbsp;&nbsp;&nbsp;Specialized Gas Vessels impairment at Portfolio Management (2) | 34.3 |  |  |
| &nbsp;&nbsp;&nbsp;Environmental remediation costs (3) | 5.9 |  |  |
| &nbsp;&nbsp;&nbsp;Net insurance proceeds (4) |  | (5.3) |  |
| &nbsp;&nbsp;&nbsp;Debt extinguishment costs (5) |  | 4.5 |  |
| Total adjustments attributable to pre-tax income from continuing operations | $54.8 | $(0.8) | $— |
| Income taxes thereon, based on applicable effective tax rate | $(1.5) | $0.2 | $— |
| Other income tax adjustments attributable to income from continuing operations: |  |  |  |
| &nbsp;&nbsp;&nbsp;Income tax rate change (6) | (3.0) |  |  |
| Total other income tax adjustments attributable to income from continuing operations | $(3.0) | $— | $— |
| Adjustments attributable to affiliates' earnings from continuing operations, net of taxes: |  |  |  |
| &nbsp;&nbsp;&nbsp;Aircraft spare engine impairment at RRPF (7) | $11.5 | $— | $— |
| &nbsp;&nbsp;&nbsp;Income tax rate changes (8) |  | 39.7 | 12.3 |
| Total adjustments attributable to affiliates' earnings from continuing operations, net of taxes | $11.5 | $39.7 | $12.3 |
| Net income from continuing operations, excluding tax adjustments and other items (non-GAAP) | $217.7 | $182.2 | $162.5 |
| Net income from discontinued operations, excluding tax adjustments and other items (non-GAAP) | $— | $— | $1.1 |
| Net income from consolidated operations, excluding tax adjustments and other items (non-GAAP) | $217.7 | $182.2 | $163.6 |

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------

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| | | | |
|:---|:---|:---|:---|
| **Impact of Tax Adjustments and Other Items on Diluted Earnings per Share:** | **Impact of Tax Adjustments and Other Items on Diluted Earnings per Share:** | **Impact of Tax Adjustments and Other Items on Diluted Earnings per Share:** | **Impact of Tax Adjustments and Other Items on Diluted Earnings per Share:** |
|  | **2022** | **2021** | **2020** |
| Diluted earnings per share from consolidated operations (GAAP) | $4.35 | $3.98 | $4.27 |
| Less: Diluted earnings per share from discontinued operations (GAAP) |  |  | 0.03 |
| Diluted earnings per share from continuing operations (GAAP) | $4.35 | $3.98 | $4.24 |
| Adjustments attributable to income from continuing operations, net of taxes: | Adjustments attributable to income from continuing operations, net of taxes: | Adjustments attributable to income from continuing operations, net of taxes: | Adjustments attributable to income from continuing operations, net of taxes: |
| &nbsp;&nbsp;&nbsp;Rail Russia impairment at Rail International (1) | 0.41 |  |  |
| &nbsp;&nbsp;&nbsp;Specialized Gas Vessels impairment at Portfolio Management (2) | 0.96 |  |  |
| &nbsp;&nbsp;&nbsp;Environmental remediation costs (3) | 0.12 |  |  |
| &nbsp;&nbsp;&nbsp;Income tax rate change (6) | (0.08) |  |  |
| &nbsp;&nbsp;&nbsp;Net insurance proceeds (4) |  | (0.11) |  |
| &nbsp;&nbsp;&nbsp;Debt extinguishment costs (5) |  | 0.09 |  |
| Adjustments attributable to affiliates' earnings from continuing operations, net of taxes: |  |  |  |
| &nbsp;&nbsp;&nbsp;Aircraft spare engine impairment at RRPF (7) | 0.32 |  |  |
| &nbsp;&nbsp;&nbsp;Income tax rate changes (8) |  | 1.10 | 0.35 |
| Diluted earnings per share from continuing operations, excluding tax adjustments and other items (non-GAAP) \* | $6.07 | $5.06 | $4.59 |
| Diluted earnings per share from discontinued operations, excluding tax adjustments and other items (non-GAAP) | $— | $— | $0.03 |
| Diluted earnings per share from consolidated operations, excluding tax adjustments and other items (non-GAAP) | $6.07 | $5.06 | $4.62 |

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\

(\*) Sum of individual components may not be additive due to rounding.

_______

(1)&nbsp;&nbsp;&nbsp;&nbsp;In 2022, we made the decision to exit our rail business in Russia. As a result, we recorded losses associated with the impairment of the net assets.

(2)&nbsp;&nbsp;&nbsp;&nbsp;In 2022, we made the decision to sell the Specialized Gas Vessels. As a result, we recorded losses associated with the impairments of these assets.

(3)&nbsp;&nbsp;&nbsp;&nbsp;Reserve recorded as part of an executed agreement for anticipated remediation costs at a previously owned property, sold in 1974.

(4)&nbsp;&nbsp;&nbsp;&nbsp;Net gain from insurance recoveries for storm damage to a maintenance facility at Rail North America.

(5)&nbsp;&nbsp;&nbsp;&nbsp;Write-off of unamortized deferred financing costs associated with the early redemption of our $150 million 5.625% Senior Notes due 2066.

(6)&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax adjustment due to an enacted corporate income tax rate reduction in Austria in 2022.

(7)&nbsp;&nbsp;&nbsp;&nbsp;Impairment losses related to aircraft spare engines in Russia that RRPF does not expect to recover.

(8)&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax adjustments due to an enacted corporate income tax rate increase in the United Kingdom in 2021 and the elimination of a previously announced corporate income tax rate reduction in the United Kingdom in 2020.

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Return on Equity (GAAP) | 7.7% | 7.2% | 8.0% |
| Return on Equity, excluding tax adjustments and other items (non-GAAP) | 10.8% | 9.2% | 8.6% |

---

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 **Item 7A. *Quantitative and Qualitative Disclosures About Market Risk***

In the normal course of business, we are exposed to interest rate and foreign currency exchange rate risks that could impact our financial results. To manage these risks we may enter into certain derivative transactions, principally interest rate swaps, Treasury rate locks, options and currency forwards and swaps. These instruments and other derivatives are entered into only for hedging existing underlying exposures. We do not hold or issue derivative financial instruments for speculative purposes.

*Interest Rate Exposure* — Our reported interest expense is affected by changes in interest rates as a result of the issuance of floating rate debt instruments. We generally manage the amount of floating rate debt exposure in order to reduce interest expense volatility. Based on our floating rate debt instruments at December 31, 2022, and giving effect to related derivatives, a hypothetical increase in market interest rates of 100 basis points would cause an increase in after-tax interest expense of $4.6 million in 2023. Comparatively, at December 31, 2021, a hypothetical 100 basis point increase in interest rates would have resulted in a $4.3 million increase in after-tax interest expense in 2022. Our earnings are also exposed to interest rate changes from affiliates' earnings. Certain affiliates issue floating rate debt instruments to finance their investments.

*Foreign Currency Exchange Rate Exposure* — Certain of our foreign subsidiaries conduct business in currencies other than the U.S. dollar, principally those operating in Austria, Canada, Germany, Poland and the Netherlands. As a result, we are exposed to foreign currency risk attributable to changes in the exchange value of the U.S. dollar in terms of the euro, Canadian dollar, and Polish zloty. Based on 2022 local currency earnings and considering non-functional currency assets and liabilities recorded as of December 31, 2022, and giving effect to related derivatives, a uniform and hypothetical 10% strengthening in the U.S. dollar versus applicable foreign currencies would decrease after-tax income in 2023 by $8.1 million. Comparatively, based on 2021 local currency earnings and considering non-functional currency assets and liabilities recorded as of December 31, 2021, a uniform and hypothetical 10% strengthening in the U.S. dollar versus applicable foreign currencies would have decreased after-tax income in 2022 by $8.3 million.

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**Item 8. *Financial Statements and Supplementary Data***

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND NOTES**

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| | |
|:---|:---|
| | **<u>Page</u>** |
| [Report of Independent Registered Public Accounting Firm on Financial Statements](#i8abe6170fcd04ac7a9d0af157d366a7b_136) (PCAOB ID: 42) | [54](#i8abe6170fcd04ac7a9d0af157d366a7b_136) |
| [Consolidated Balance Sheets](#i8abe6170fcd04ac7a9d0af157d366a7b_139) | [56](#i8abe6170fcd04ac7a9d0af157d366a7b_139) |
| [Consolidated Statements of Comprehensive Income](#i8abe6170fcd04ac7a9d0af157d366a7b_145) | [57](#i8abe6170fcd04ac7a9d0af157d366a7b_145) |
| [Consolidated Statements of Cash Flows](#i8abe6170fcd04ac7a9d0af157d366a7b_148) | [58](#i8abe6170fcd04ac7a9d0af157d366a7b_148) |
| [Consolidated Statements of Changes in Shareholders' Equity](#i8abe6170fcd04ac7a9d0af157d366a7b_151) | [59](#i8abe6170fcd04ac7a9d0af157d366a7b_151) |
| [Notes to Consolidated Financial Statements](#i8abe6170fcd04ac7a9d0af157d366a7b_157) |  |
| &nbsp;&nbsp;&nbsp;[Note 1. Description of Business](#i8abe6170fcd04ac7a9d0af157d366a7b_160) | [60](#i8abe6170fcd04ac7a9d0af157d366a7b_160) |
| &nbsp;&nbsp;&nbsp;[Note 2. Accounting Changes](#i8abe6170fcd04ac7a9d0af157d366a7b_163) | [61](#i8abe6170fcd04ac7a9d0af157d366a7b_163) |
| &nbsp;&nbsp;&nbsp;[Note 3. Significant Accounting Policies](#i8abe6170fcd04ac7a9d0af157d366a7b_166) | [61](#i8abe6170fcd04ac7a9d0af157d366a7b_166) |
| &nbsp;&nbsp;&nbsp;[Note 4. Business Combinations](#i8abe6170fcd04ac7a9d0af157d366a7b_172) | [67](#i8abe6170fcd04ac7a9d0af157d366a7b_172) |
| &nbsp;&nbsp;&nbsp;[Note 5. Supplemental Cash Flow Information](#i8abe6170fcd04ac7a9d0af157d366a7b_175) | [67](#i8abe6170fcd04ac7a9d0af157d366a7b_175) |
| &nbsp;&nbsp;&nbsp;[Note 6. Leases](#i8abe6170fcd04ac7a9d0af157d366a7b_178) | [67](#i8abe6170fcd04ac7a9d0af157d366a7b_178) |
| &nbsp;&nbsp;&nbsp;[Note 7. Investments in Affiliated Companies](#i8abe6170fcd04ac7a9d0af157d366a7b_181) | [70](#i8abe6170fcd04ac7a9d0af157d366a7b_181) |
| &nbsp;&nbsp;&nbsp;[Note 8. Debt](#i8abe6170fcd04ac7a9d0af157d366a7b_187) | [73](#i8abe6170fcd04ac7a9d0af157d366a7b_187) |
| &nbsp;&nbsp;&nbsp;[Note 9. Fair Value](#i8abe6170fcd04ac7a9d0af157d366a7b_190) | [76](#i8abe6170fcd04ac7a9d0af157d366a7b_190) |
| &nbsp;&nbsp;&nbsp;[Note 10. Assets Impairments and Assets Held for Sale](#i8abe6170fcd04ac7a9d0af157d366a7b_193) | [80](#i8abe6170fcd04ac7a9d0af157d366a7b_193) |
| &nbsp;&nbsp;&nbsp;[Note 11. Pension and Other Post-Retirement Benefits](#i8abe6170fcd04ac7a9d0af157d366a7b_196) | [81](#i8abe6170fcd04ac7a9d0af157d366a7b_196) |
| &nbsp;&nbsp;&nbsp;[Note 12. Share-Based Compensation](#i8abe6170fcd04ac7a9d0af157d366a7b_202) | [87](#i8abe6170fcd04ac7a9d0af157d366a7b_202) |
| &nbsp;&nbsp;&nbsp;[Note 13. Income Taxes](#i8abe6170fcd04ac7a9d0af157d366a7b_208) | [90](#i8abe6170fcd04ac7a9d0af157d366a7b_208) |
| &nbsp;&nbsp;&nbsp;[Note 14. Concentrations](#i8abe6170fcd04ac7a9d0af157d366a7b_211) | [93](#i8abe6170fcd04ac7a9d0af157d366a7b_211) |
| &nbsp;&nbsp;&nbsp;[Note 15. Commercial Commitments](#i8abe6170fcd04ac7a9d0af157d366a7b_214) | [93](#i8abe6170fcd04ac7a9d0af157d366a7b_214) |
| &nbsp;&nbsp;&nbsp;[Note 16. Earnings per Share](#i8abe6170fcd04ac7a9d0af157d366a7b_217) | [94](#i8abe6170fcd04ac7a9d0af157d366a7b_217) |
| &nbsp;&nbsp;&nbsp;[Note 17. Goodwill](#i8abe6170fcd04ac7a9d0af157d366a7b_220) | [94](#i8abe6170fcd04ac7a9d0af157d366a7b_220) |
| &nbsp;&nbsp;&nbsp;[Note 18. Allowance for Losses](#i8abe6170fcd04ac7a9d0af157d366a7b_223) | [95](#i8abe6170fcd04ac7a9d0af157d366a7b_223) |
| &nbsp;&nbsp;&nbsp;[Note 19. Other Assets and Other Liabilities](#i8abe6170fcd04ac7a9d0af157d366a7b_226) | [95](#i8abe6170fcd04ac7a9d0af157d366a7b_226) |
| &nbsp;&nbsp;&nbsp;[Note 20. Shareholders' Equity](#i8abe6170fcd04ac7a9d0af157d366a7b_229) | [95](#i8abe6170fcd04ac7a9d0af157d366a7b_229) |
| &nbsp;&nbsp;&nbsp;[Note 21. Accumulated Other Comprehensive Loss](#i8abe6170fcd04ac7a9d0af157d366a7b_232) | [96](#i8abe6170fcd04ac7a9d0af157d366a7b_232) |
| &nbsp;&nbsp;&nbsp;[Note 22. Foreign Operations](#i8abe6170fcd04ac7a9d0af157d366a7b_235) | [96](#i8abe6170fcd04ac7a9d0af157d366a7b_235) |
| &nbsp;&nbsp;&nbsp;[Note 23. Legal Proceedings and Other Contingencies](#i8abe6170fcd04ac7a9d0af157d366a7b_238) | [97](#i8abe6170fcd04ac7a9d0af157d366a7b_238) |
| &nbsp;&nbsp;&nbsp;[Note 24. Financial Data of Business Segments](#i8abe6170fcd04ac7a9d0af157d366a7b_241) | [98](#i8abe6170fcd04ac7a9d0af157d366a7b_241) |
| &nbsp;&nbsp;&nbsp;[Note 25. Discontinued Operations](#i8abe6170fcd04ac7a9d0af157d366a7b_247) | [103](#i8abe6170fcd04ac7a9d0af157d366a7b_247) |
| &nbsp;&nbsp;&nbsp;[Note 26. Subsequent Events](#i8abe6170fcd04ac7a9d0af157d366a7b_1712) | [103](#i8abe6170fcd04ac7a9d0af157d366a7b_1712) |

---

------

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and the Board of Directors of GATX Corporation

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of GATX Corporation and subsidiaries (the Company) as of December 31, 2022 and 2021, the related consolidated statements of comprehensive income, changes in shareholders' equity and cash flows for each of the three years in the period ended December 31, 2022, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 16, 2023 expressed an unqualified opinion thereon.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below providing a separate opinion on the critical audit matter or on the account or disclosures to which it relates.

------

---

| | |
|:---|:---|
| | ***Impairment of Long-Lived Assets*** |
| *Description of the Matter* | As described in Notes 3 and 10 to the consolidated financial statements, the Company reviews long-lived assets for impairment annually, or if circumstances indicate that the carrying amount of those assets may not be recoverable. The Company evaluates the recoverability of assets to be held and used by comparing the carrying amount of the asset to the undiscounted future net cash flows the asset is expected to generate. If the Company determines that an asset is impaired, an impairment loss is recognized equal to the excess of the asset's carrying amount over its fair value.<br>Auditing management's evaluation of long-lived assets for impairment involved subjectivity due to the significant estimation required to determine the undiscounted future net cash flows for assets with indicators of potential impairment. In particular, the estimated lease revenue is a significant assumption, which can be affected by changes to the Company's business and industry factors.  |
| *How We Addressed the Matter in Our Audit* | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company's long-lived asset impairment review process, including controls over management's review of the significant assumption discussed above.<br>To test the Company's long-lived asset impairment review process, we performed audit procedures that included, among others, assessing the methodology used, evaluating the significant assumptions discussed above and testing the completeness and accuracy of the underlying data used by the Company in its analysis. We assessed the historical accuracy of management's estimates and compared the estimated lease revenue used by management to current year renewal lease rates. In addition, we evaluated whether changes to the Company's business and industry factors would affect the reasonableness of the estimated lease revenues. |

---

/s/ Ernst & Young LLP

We have served as the Company's auditor since 1916.

Chicago, Illinois

February 16, 2023

------

**GATX CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

**(In millions, except share data)** 

---

| | | |
|:---|:---|:---|
| | **December 31** | **December 31** |
| | **2022** | **2021** |
| **Assets** |  |  |
| **Cash and Cash Equivalents** | $303.7 | $344.3 |
| **Restricted Cash** | 0.3 | 0.2 |
| **Short-Term Investments** | 148.5 |  |
| **Receivables** |  |  |
| Rent and other receivables | 71.4 | 69.8 |
| Finance leases (as lessor) | 96.5 | 100.2 |
| Less: allowance for losses | (5.9) | (6.2) |
|  | 162.0 | 163.8 |
| **Operating Assets and Facilities** | 11675.0 | 11163.6 |
| Less: allowance for depreciation | (3424.7) | (3378.8) |
|  | 8250.3 | 7784.8 |
| **Lease Assets (as lessee)** |  |  |
| Right-of-use assets, net of accumulated depreciation | 243.5 | 270.7 |
| Finance leases, net of accumulated depreciation |  | 1.5 |
|  | 243.5 | 272.2 |
| **Investments in Affiliated Companies** | 575.1 | 588.4 |
| **Goodwill** | 117.2 | 123.0 |
| **Other Assets** (including $40.0 million and $3.8 million related to assets held for sale) | 271.4 | 265.0 |
| **Total Assets** | $10072.0 | $9541.7 |
| **Liabilities and Shareholders' Equity** |  |  |
| **Accounts Payable and Accrued Expenses** | $202.2 | $215.8 |
| **Debt** |  |  |
| Commercial paper and borrowings under bank credit facilities | 17.3 | 18.1 |
| Recourse | 6431.5 | 5887.5 |
|  | 6448.8 | 5905.6 |
| **Lease Obligations (as lessee)** |  |  |
| Operating leases | 257.9 | 286.2 |
| Finance leases |  | 1.5 |
|  | 257.9 | 287.7 |
| **Deferred Income Taxes** | 1031.5 | 1001.0 |
| **Other Liabilities** | 102.0 | 112.4 |
| **Total Liabilities** | 8042.4 | 7522.5 |
| **Shareholders' Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.625 par value:<br>Authorized shares — 120,000,000 <br>Issued shares — 68,575,974 and 68,254,574 <br>Outstanding shares — 35,268,308 and 35,421,617 | 42.4 | 42.2 |
| Additional paid in capital | 792.2 | 763.8 |
| Retained earnings | 2831.5 | 2751.5 |
| Accumulated other comprehensive loss | (211.6) | (160.6) |
| Treasury stock at cost (33,307,666 and 32,832,957 shares) | (1424.9) | (1377.7) |
| **Total Shareholders' Equity** | 2029.6 | 2019.2 |
| **Total Liabilities and Shareholders' Equity** | $10072.0 | $9541.7 |

---

See accompanying notes to consolidated financial statements.

------

**GATX CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**

**(In millions, except per share data)**

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
| | **2022** | **2021** | **2020** |
| **Revenues** |  |  |  |
| Lease revenue | $1154.6 | $1140.5 | $1087.5 |
| Marine operating revenue | 18.9 | 19.1 | 15.6 |
| Other revenue | 99.5 | 97.8 | 106.1 |
| **Total Revenues** | 1273.0 | 1257.4 | 1209.2 |
| **Expenses** |  |  |  |
| Maintenance expense | 292.7 | 297.1 | 315.5 |
| Marine operating expense | 14.1 | 17.5 | 19.7 |
| Depreciation expense | 357.5 | 364.4 | 330.5 |
| Operating lease expense | 36.1 | 39.2 | 49.3 |
| Other operating expense | 37.4 | 44.0 | 35.3 |
| Selling, general and administrative expense | 195.0 | 198.3 | 172.0 |
| **Total Expenses** | 932.8 | 960.5 | 922.3 |
| **Other Income (Expense)** |  |  |  |
| Net gain on asset dispositions | 77.9 | 105.9 | 41.7 |
| Interest expense, net | (214.0) | (204.0) | (190.3) |
| Other expense | (27.0) | (3.7) | (13.0) |
| **Income before Income Taxes and Share of Affiliates' Earnings** | 177.1 | 195.1 | 125.3 |
| Income taxes | (54.8) | (53.2) | (37.3) |
| Share of affiliates' earnings, net of taxes | 33.6 | 1.2 | 62.2 |
| **Net Income from Continuing Operations** | 155.9 | 143.1 | 150.2 |
| **Income from Discontinued Operations, Net of Taxes** |  |  | 1.1 |
| **Net Income** | 155.9 | 143.1 | 151.3 |
| **Other Comprehensive Income, Net of Taxes** |  |  |  |
| Foreign currency translation adjustments | (56.7) | (51.7) | 24.4 |
| Unrealized gain (loss) on derivative instruments | 1.4 | 1.9 | (4.5) |
| Post-retirement benefit plans | 4.3 | 26.7 | 6.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive (loss) gain | (51.0) | (23.1) | 26.1 |
| **Comprehensive Income** | $104.9 | $120.0 | $177.4 |
| **Share Data** |  |  |  |
| Basic earnings per share from continuing operations | $4.41 | $4.04 | $4.30 |
| Basic earnings per share from discontinued operations |  |  | 0.03 |
| Basic earnings per share from consolidated operations | $4.41 | $4.04 | $4.33 |
| Average number of common shares | 35.4 | 35.4 | 35.0 |
| Diluted earnings per share from continuing operations | $4.35 | $3.98 | $4.24 |
| Diluted earnings per share from discontinued operations |  |  | 0.03 |
| Diluted earnings per share from consolidated operations | $4.35 | $3.98 | $4.27 |
| Average number of common shares and common share equivalents | 35.9 | 36.0 | 35.4 |

---

See accompanying notes to consolidated financial statements.

------

**GATX CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In millions)**

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
| | **2022** | **2021** | **2020** |
| **Operating Activities** |  |  |  |
| Net income | $155.9 | $143.1 | $151.3 |
| Income from discontinued operations, net of taxes  |  |  | 1.1 |
| Income from continuing operations | 155.9 | 143.1 | 150.2 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation expense | 371.3 | 378.4 | 342.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gains on sales of assets | (121.2) | (99.4) | (39.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset impairments | 48.9 | 2.4 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee benefit plans | 1.8 | 8.8 | 6.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 12.7 | 17.4 | 15.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 36.3 | 34.2 | 29.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share of affiliates' earnings, net of dividends | 12.7 | (1.2) | (62.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in working capital items | 15.1 | 23.5 | (6.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities of continuing operations | 533.5 | 507.2 | 436.8 |
| **Investing Activities** |  |  |  |
| Additions to operating assets and facilities | (1255.8) | (1130.1) | (860.8) |
| Acquisition of new businesses |  | (1.4) | (203.2) |
| Investments in affiliates |  | (0.4) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portfolio investments and capital additions | (1255.8) | (1131.9) | (1064.0) |
| Portfolio proceeds | 269.6 | 187.1 | 131.1 |
| Proceeds from sales of other assets | 31.1 | 54.7 | 26.0 |
| Short-term investments | (148.5) |  |  |
| Other | 30.1 | (27.6) | 2.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities of continuing operations | (1073.5) | (917.7) | (904.9) |
| **Financing Activities** |  |  |  |
| Net proceeds from issuances of debt (original maturities longer than 90 days) | 848.3 | 1491.9 | 1586.5 |
| Repayments of debt (original maturities longer than 90 days) | (250.0) | (884.0) | (1100.0) |
| Net (decrease) increase in debt with original maturities of 90 days or less |  | (4.1) | 6.4 |
| Purchases of assets previously leased | (1.5) | (77.2) | (40.0) |
| Stock repurchases | (47.2) | (13.1) |  |
| Dividends | (76.6) | (74.3) | (71.0) |
| Other | 31.4 | 23.9 | (26.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities of continuing operations | 504.4 | 463.1 | 355.6 |
| **Effect of Exchange Rate Changes on Cash and Cash Equivalents** | (4.9) | (1.8) | (0.1) |
| Net cash used in operating activities of discontinued operations |  |  | (8.5) |
| Net cash provided by investing activities of discontinued operations |  | 1.1 | 240.9 |
| Net cash provided by financial activities of discontinued operations |  |  | 21.8 |
| **Cash provided by discontinued operations, net** |  | 1.1 | 254.2 |
| &nbsp;&nbsp;**Net (decrease) increase in Cash, Cash Equivalents, and Restricted Cash during the year** | (40.5) | 51.9 | 141.6 |
| **Cash, Cash Equivalents, and Restricted Cash at beginning of year** | 344.5 | 292.6 | 151.0 |
| **Cash, Cash Equivalents, and Restricted Cash at end of year** | $304.0 | $344.5 | $292.6 |

---

See accompanying notes to consolidated financial statements.

------

**GATX CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**

**(In millions)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2022**<br>**Shares** | **2022**<br>**Dollars** | **2021**<br>**Shares** | **2021**<br>**Dollars** | **2020**<br>**Shares** | **2020**<br>**Dollars** |
| **Common Stock** |  |  |  |  |  |  |
| Balance at beginning of year | 68.3 | $42.2 | 67.8 | $41.9 | 67.5 | $41.8 |
| Issuance of common stock | 0.3 | 0.2 | 0.5 | 0.3 | 0.3 | 0.1 |
| Balance at end of year | 68.6 | 42.4 | 68.3 | 42.2 | 67.8 | 41.9 |
| **Treasury Stock** |  |  |  |  |  |  |
| Balance at beginning of year | (32.8) | (1377.7) | (32.7) | (1364.5) | (32.7) | (1364.5) |
| Stock repurchases | (0.5) | (47.2) | (0.1) | (13.2) |  |  |
| Balance at end of year | (33.3) | (1424.9) | (32.8) | (1377.7) | (32.7) | (1364.5) |
| **Additional Paid In Capital** |  |  |  |  |  |  |
| Balance at beginning of year |  | 763.8 |  | 735.4 |  | 720.1 |
| Share-based compensation effects |  | 28.4 |  | 28.4 |  | 15.3 |
| Balance at end of year |  | 792.2 |  | 763.8 |  | 735.4 |
| **Retained Earnings** |  |  |  |  |  |  |
| Balance at beginning of year |  | 2751.5 |  | 2682.1 |  | 2601.3 |
| Net income |  | 155.9 |  | 143.1 |  | 151.3 |
| Dividends declared ($2.08 in 2022, $2.00 in 2021 and $1.92 in 2020) |  | (75.9) |  | (73.7) |  | (70.5) |
| Balance at end of year |  | 2831.5 |  | 2751.5 |  | 2682.1 |
| **Accumulated Other Comprehensive Loss** |  |  |  |  |  |  |
| Balance at beginning of year |  | (160.6) |  | (137.5) |  | (163.6) |
| Other comprehensive (loss) income |  | (51.0) |  | (23.1) |  | 26.1 |
| Balance at end of year |  | (211.6) |  | (160.6) |  | (137.5) |
| **Total Shareholders' Equity** |  | $2029.6 |  | $2019.2 |  | $1957.4 |

---

See accompanying notes to consolidated financial statements.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1. 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 three primary business segments: Rail North America, Rail International, and Portfolio Management. Financial results for our tank container leasing business ("Trifleet Leasing") are reported in the Other segment. Historically, we also reported financial results for American Steamship Company ("ASC") as a fourth segment.

In 2022, after a thorough strategic review, we made the decision to exit our rail business in Russia ("Rail Russia"), which is reported within the Rail International segment. This decision was due to the impacts of the Russia/Ukraine conflict on our business and the business risks associated with the geopolitical environment resulting from that conflict. As a result, the net assets of Rail Russia have been classified as held for sale and an impairment loss of $14.6 million was recognized in 2022. On January 31, 2023, we completed the sale of Rail Russia. See "Note 26. Subsequent Events".

In 2022, we made the decision to sell the five liquefied gas-carrying vessels (the "Specialized Gas Vessels") within the Portfolio Management segment. As a result, the Specialized Gas Vessels were classified as held for sale and impairment losses of $34.3 million were recognized in 2022. GATX sold two of the Specialized Gas Vessels in 2022.

In 2021, we began investing directly in aircraft spare engines through our entity, GATX Engine Leasing Ltd. ("GEL"). In 2021, GEL acquired 14 aircraft spare engines for approximately $352 million, including four engines for $120 million from Rolls-Royce & Partners Finance joint ventures (collectively the "RRPF affiliates" or "RRPF"). In 2022, GEL acquired five aircraft spare engines for approximately $150 million. Financial results for this business are reported in the Portfolio Management segment.

On December 29, 2020, we acquired Trifleet Leasing Holding B.V. ("Trifleet"), one of the largest tank container lessors in the world. Financial results for this business are reported in the Other segment. See "Note 4. Business Combinations" for additional information.

On May 14, 2020, we completed the sale of our ASC business. As a result, ASC is reported as discontinued operations, and financial data for the ASC segment has been segregated and presented as discontinued operations for all periods presented. See "Note 25. Discontinued Operations" for additional information.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**NOTE 2. Accounting Changes** 

***New Accounting Pronouncements Adopted***

---

| | | |
|:---|:---|:---|
| **Standard/Description** | **Effective Date and Adoption Considerations** | **Effect on Financial Statements or Other Significant Matters** |
| *<u>Variable Lease Payments</u>*<br>In July 2021, the FASB issued ASU 2021-05, *Leases (Topic 842) - Lessors - Certain Leases with Variable Lease Payments*, which requires lessors to classify leases as operating leases if they have variable lease payments that do not depend on an index or rate and would have selling losses if they were classified as finance leases. | <br>The new guidance was effective for us in the first quarter of 2022. | <br>The application of this guidance did not impact our financial statements or related disclosures. |

---

***New Accounting Pronouncements Not Yet Adopted***

---

| | | |
|:---|:---|:---|
| **Standard/Description** | **Effective Date and Adoption Considerations** | **Effect on Financial Statements or Other Significant Matters** |
| *<u>Reference Rate Reform</u>*<br>In March 2020, the FASB issued ASU 2020-04, *Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting*, which provides optional practical expedients and exceptions in the application of GAAP principles to contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates being discontinued as a result of reference rate reform. | <br>Optional expedients are available for adoption from March 12, 2020 through December 31, 2024. | <br>For any contracts that reference LIBOR, we are currently assessing how this standard may be applied to specific contract modifications through December 31, 2024. |

---

**NOTE 3. Significant Accounting Policies**

***Basis of Presentation***

We prepared the accompanying consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP").

***Consolidation***

Our consolidated financial statements include our assets, liabilities, revenues, and expenses, as well as the assets, liabilities, revenues, and expenses of subsidiaries in which we had a controlling financial interest. We have eliminated intercompany transactions and balances.

***Use of Estimates*** 

Preparing financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts we report. We regularly evaluate our estimates and judgments based on historical experience and other relevant facts and circumstances. Actual amounts could differ from our estimates.

***Lease Classification***

We determine the classification of a lease at its inception. If the provisions of the lease subsequently change, other than by renewal or extension, we evaluate whether that change would have resulted in a different lease classification had the change been in effect at inception. If so, the revised agreement is considered a new lease for lease classification purposes. See "Note 6. Leases."

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

***Revenue Recognition***

Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods and services.

We disaggregate revenue into three categories as presented on our statements of comprehensive income:

*Lease Revenue*

Lease revenue, which includes operating lease revenue and finance lease revenue, is our primary source of revenue.

*Operating Lease Revenue*

We lease railcars, aircraft spare engines, tank containers, and other operating assets under full-service and net operating leases. We price full-service leases as an integrated service that includes amounts related to maintenance, insurance, and ad valorem taxes. We do not offer stand-alone maintenance service contracts. Operating lease revenue is within the scope of Topic 842, and we have elected not to separate non-lease components from the associated lease component for qualifying leases. Operating lease revenue is recognized on a straight-line basis over the term of the underlying lease. As a result, lease revenue may not be recognized in the same period as maintenance and other costs, which we expense as incurred. Variable rents are recognized when applicable contingencies are resolved. Revenue is not recognized if collectability is not reasonably assured. See "Note 6. Leases."

*Finance Lease Revenue*

In certain cases, we lease railcars and tank containers that, at lease inception, are classified as finance leases. In accordance with Topic 842, finance lease revenue is recognized using the interest method, which produces a constant yield over the lease term. Initial unearned income is the amount by which the original lease payment receivable and the estimated residual value of the leased asset exceeds the original cost or carrying value of the leased asset. See "Note 6. Leases."

*Marine Operating Revenue*

We generate marine operating revenue through shipping services completed by our marine vessels. For vessels operating in a pooling arrangement, we recognize pool revenue based on the right to receive our portion of net distributions reported by the pool, with net distributions being the net voyage revenue of the pool after deduction of voyage expenses. For vessels operating out of the pool, we recognize revenue over time as the performance obligation is satisfied, beginning when cargo is loaded through its delivery and discharge.

*Other Revenue*

Other revenue is comprised of customer liability repair revenue, termination fees, utilization income, fee income, and other miscellaneous revenues. Select components of other revenue are within the scope of Topic 606. Revenue attributable to terms provided in our lease contracts are variable lease components that are recognized when earned, in accordance with Topic 842.

***Cash and Cash Equivalents and Short-Term Investments***

We classify all highly liquid investments with a maturity of three months or less at the date of purchase as cash equivalents. Investments with maturities greater than three months but less than one year at the date of purchase are classified as short-term investments.

***Restricted Cash***

Restricted cash is cash and cash equivalents that are restricted as to withdrawal and use. Our restricted cash primarily relates to cash received from a specific customer and held to pay for potential repairs.

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

***Finance Lease Receivables***

We record a gross lease payment receivable and an estimated residual value, net of unearned income for our finance leases. For sales-type leases, we may also recognize a gain or loss in the period the lease is recorded. Lease payment receivables represent the present value of the rents we expect to receive through the end of the lease term for a leased asset. Estimated residual values are our estimates of value of an asset at the end of a finance lease term. The combination of these is considered the net investment in a lease. Over the lease term, the net investment in these leases is reduced and finance lease income is recognized in our consolidated statements of comprehensive income. We evaluate our net investment in finance leases for impairment based on current conditions and reasonable and supportable forecasts of future conditions under the current expected credit loss standard. See the "Allowance for Losses" section within this Note for more information.

***Allowance for Losses***

The allowance for losses is our estimate of credit losses associated with receivable balances. Receivables include rent and other receivables and finance lease receivables.

Our loss reserves for rent and other receivables are based on historical loss experience and judgments about the impact of economic conditions, the state of the markets we operate in, and collateral values, if applicable. In addition, we may establish specific reserves for known troubled accounts.

We evaluate reserve estimates for finance lease receivables under ASC 326, on a customer-specific basis, considering each customer's particular credit situation, current economic conditions, and expected value of the underlying collateral upon its repossession, to adjust the allowance when necessary. We also consider the factors we use to evaluate rent and other receivables, which are outlined above.

We charge amounts against the allowance when we deem them uncollectable. We made no material changes in our estimation methods or assumptions for the allowance during 2022. We believe that the allowance is adequate to cover losses inherent in our receivables balances as of December 31, 2022. Since the allowance is based on judgments and estimates, it is possible that actual losses incurred will differ from the estimate. See "Note 18. Allowance for Losses."

***Operating Assets and Facilities*** 

We record operating assets, facilities, and capitalized improvements at cost. We depreciate operating assets and facilities over their estimated useful lives to estimated residual values using the straight-line method. We depreciate leasehold improvements over the shorter of their useful lives or the lease term. Our estimated depreciable lives of operating assets and facilities are as follows:

---

| | |
|:---|:---|
| Railcars | 15–45 years |
| Aircraft spare engines | 20–25 years |
| Locomotives | 15–25 years |
| Marine vessels | 30 years |
| Tank containers | 15–25 years |
| Buildings | 40–50 years |
| Leasehold improvements | 5–15 years |
| Other equipment | 5–30 years |

---

We review our operating assets and facilities for impairment annually, or if circumstances indicate that the carrying amount of those assets may not be recoverable. We evaluate the recoverability of assets to be held and used by comparing the carrying amount of the asset to the undiscounted future net cash flows we expect the asset to generate. If we determine an asset is impaired, we recognize an impairment loss equal to the amount the carrying amount exceeds the asset's fair value. We classify assets we plan to sell or otherwise dispose of as held for sale, provided they meet specified accounting criteria, and we record those assets at the lower of their carrying amount or fair value less costs to sell. See "Note 10. Asset Impairments and Assets Held for Sale" for further information about asset impairment losses and assets held for sale.

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

***Leased Assets as a Lessee***

We record right-of-use assets for operating leases and finance leases as a lessee and we record the related obligations as liabilities. We amortize the leased assets over the lease terms. We review our right-of-use assets for impairment annually, or if circumstances indicate that the carrying amount of those assets may not be recoverable.

***Investments in Affiliates***

We use the equity method to account for investments in joint ventures and other unconsolidated entities if we have the ability to exercise significant influence over the financial and operating policies of those investees. Under the equity method, we record our initial investments in these entities at cost and subsequently adjust the investment for our share of the affiliates' earnings (losses), and distributions. We review the carrying amount of our investments in affiliates annually, or whenever circumstances indicate that the value of these investments may have declined. If we determine an investment is impaired on an other-than-temporary basis, we record a loss equal to the difference between the fair value of the investment and its carrying amount. See "Note 7. Investments in Affiliated Companies."

***Variable Interest Entities*** 

We evaluate whether an entity is a variable interest entity based on the sufficiency of the entity's equity and by determining whether the equity holders have the characteristics of a controlling financial interest. To determine if we are the primary beneficiary of a variable interest entity, we assess whether we have the power to direct the activities that most significantly impact the economic performance of the entity as well as the obligation to absorb losses or the right to receive benefits that may be significant to the entity. These determinations are both qualitative and quantitative, and they require us to make judgments and assumptions about the entity's forecasted financial performance and the volatility inherent in those forecasted results. We evaluate new investments for variable interest entity determination and regularly review all existing entities for events that may result in an entity becoming a variable interest entity or us becoming the primary beneficiary of an existing variable interest entity.

***Goodwill and Intangible Assets***

We recognize goodwill when the consideration paid to acquire a business exceeds the fair value of the net assets acquired. We assign goodwill to the same reporting unit as the net assets of the acquired business and we assess our goodwill for impairment on an annual basis in the fourth quarter, or if impairment indicators are present. Goodwill is initially assessed for impairment by performing a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value. If necessary, the fair value of the reporting unit is then compared to its carrying value, including goodwill. If the carrying amount of the applicable reporting unit exceeds its fair value, we record an impairment loss for the difference. The fair values of our reporting units are determined using discounted cash flow models. See "Note 17. Goodwill."

We recognize intangible assets acquired in a business combination at their estimated fair value at the time of the business combination. Intangible assets consist of customer relationships and trade names and are amortized on a straight-line basis over their estimated useful lives ranging from 10 years to 25 years. We review intangible assets for potential impairment if circumstances indicate that the carrying amount of those assets may not be recoverable. Intangible assets are included in other assets on the balance sheet.

***Inventory***

Our inventory consists primarily of railcar and locomotive repair components. All inventory balances are stated at lower of cost or net realizable value. Railcar repair components are valued using the average cost method. Inventory is included in other assets on the balance sheet.

***Income Taxes***

We calculate provisions for federal, state, and foreign income taxes on our reported income before income taxes. We base our calculations of deferred tax assets and liabilities on the differences between the financial statement and tax bases of assets and liabilities, using enacted rates in effect for the year we expect the differences will reverse. We reflect the cumulative effect of changes in tax rates from those we previously used to determine deferred tax assets and liabilities in the provision for income taxes in the period the change is enacted. Provisions for income taxes in any given period can differ from those currently payable or receivable because certain items of income and expense are recognized in different periods for financial reporting purposes than for income tax

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

purposes. We may deduct expenses or defer income attributable to uncertain tax positions for tax purposes, and include those items in our liability for uncertain tax positions in other liabilities on the balance sheet. See "Note 13. Income Taxes."

***Fair Value Measurements***

Fair value is the price that a market participant would receive to sell an asset or pay to transfer a liability in an orderly transaction at the measurement date. We classify fair value measurements according to the three-level hierarchy defined by GAAP, and those classifications are based on our judgment about the reliability of the inputs we use in the fair value measurement. Level 1 inputs are quoted prices available in active markets for identical assets or liabilities. Level 2 inputs are observable, either directly or indirectly, and may include quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. For assets or liabilities with a specified contractual term, Level 2 inputs must be observable for substantially the full term of that asset or liability. Level 3 inputs are unobservable, meaning they are supported by little or no market activity. Fair value measurements classified as Level 3 typically rely on pricing models and discounted cash flow methodologies, both of which require significant judgment. See "Note 9. Fair Value."

***Derivatives***

We use derivatives, such as interest rate swap agreements, treasury rate locks, options, cross currency swaps, and currency forwards, to hedge our exposure to interest rate and foreign currency exchange rate risk on existing and anticipated transactions. We formally designate derivatives that meet specific accounting criteria as qualifying hedges at inception. These criteria require us to have the expectation that the derivative will be highly effective at offsetting changes in the fair value or expected cash flows of the hedged exposure, both at the inception of the hedging relationship and on an ongoing basis.

We recognize all derivative instruments at fair value and classify them on the balance sheet as either other assets or other liabilities. We generally base the classification of derivative activity in the statements of comprehensive income and cash flows on the nature of the hedged item. For derivatives we designate as fair value hedges, we recognize changes in the fair value of both the derivative and the hedged item in earnings. For derivatives we designate as cash flow hedges, we record the effective portion of the change in the fair value of the derivative as part of other comprehensive income (loss), and we recognize those changes in earnings in the period the hedged transaction affects earnings. We recognize any ineffective portion of the change in the fair value of the derivative immediately in earnings. Although we do not hold or issue derivative financial instruments for purposes other than hedging, we may not designate certain derivatives as accounting hedges. We recognize changes in the fair value of these derivatives in earnings immediately. We classify gains and losses on derivatives that are not designated as hedges as other expenses, and we include the related cash flows in cash flows from operating activities. See "Note 9. Fair Value."

***Foreign Currency***

We translate the assets and liabilities of our operations that have non-US dollar functional currencies at exchange rates in effect at year-end. Revenue, expenses, and cash flows are translated monthly using average exchange rates. We defer gains and losses resulting from foreign currency translation and record those gains and losses as a separate component of accumulated other comprehensive loss. Gains and losses resulting from foreign currency transactions and from the remeasurement of non-functional currency assets and liabilities are recognized net of related hedges in other expense during the periods in which they occur. Net losses recognized were $4.6 million, $0.8 million and $10.8 million for 2022, 2021, and 2020.

***Environmental Liabilities***

We record accruals for environmental remediation costs at applicable sites when they are probable and when we can reasonably estimate the expected costs. We record adjustments to initial estimates as necessary. Since these accruals are based on estimates, actual environmental remediation costs may differ. We expense or capitalize environmental remediation costs related to current or future operations as appropriate. See "Note 23. Legal Proceedings and Other Contingencies."

***Defined Benefit Pension and Other Post-Retirement Plans***

Our balance sheet reflects the funded status of our pension and post-retirement plans, which is the difference between the fair value of the plan assets and the projected benefit obligation. We recognize the aggregate overfunding of any plans in other assets, the aggregate underfunding of any plans in other liabilities, and the corresponding adjustments for unrecognized actuarial gains (losses) and prior service cost (credits) in accumulated other comprehensive loss. We record the service cost component of net periodic cost in selling, general, and administrative expense in the statements of comprehensive income and the non-service components in other expense. See "Note 11. Pension and Other Post-Retirement Benefits."

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

***Maintenance and Repair Costs***

We expense maintenance and repair costs as incurred. We capitalize certain costs incurred in connection with planned major maintenance activities if those activities improve the asset or extend its useful life. We depreciate those capitalized costs over the estimated useful life of the improvement. We capitalize required regulatory survey costs for vessels and amortize those costs over the applicable survey period, which is generally five years.

***Operating Lease Expense***

We classify leases of certain railcars and other equipment as operating leases. We record the lease expense associated with these leases on a straight-line basis. We also classify our leases of office facilities and related administrative assets as operating leases, and we record the associated expense in selling, general and administrative expense. See "Note 6. Leases."

***Share-Based Compensation***

We base our measurement of share-based compensation expense on the grant date fair value of an award, and we recognize the expense over the requisite service period. Forfeitures are recorded when they occur. See "Note 12. Share-Based Compensation."

***Net Gain on Asset Dispositions***

Net gain on dispositions includes gains and losses on sales of operating assets and residual sharing income, which we also refer to as asset remarketing income; non-remarketing disposition gains, primarily from scrapping of railcars; and asset impairment losses. We recognize disposition gains, including non-remarketing gains, upon completion of the sale or scrapping of operating assets. Residual sharing income includes fees we receive from the sale of managed assets, and we recognize these fees upon completion of the underlying transactions.

The following table presents the net gain on asset dispositions for the years ended December 31 (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Net disposition gains | $104.1 | $82.4 | $39.4 |
| Residual sharing income | 5.6 | 8.9 | 2.5 |
| Non-remarketing net disposition gains | 17.1 | 17.0 | 0.1 |
| Asset impairments (1) | (48.9) | (2.4) | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Gain on Asset Dispositions | $77.9 | $105.9 | $41.7 |

---

__________

(1) See "Note 10. Asset Impairments and Assets Held for Sale" for further information about asset impairment losses.

***Interest Expense, net***

Interest expense is the interest we accrue on indebtedness and the amortization of debt issuance costs and debt discounts and premiums. We defer debt issuance costs and debt discounts and premiums and amortize them over the term of the related debt. We report interest expense net of interest income on bank deposits. Interest income on bank deposits was $6.4 million in 2022, $0.7 million in 2021, and $1.5 million in 2020.

***Other Expense***

We include fair value adjustments on certain financial instruments, gains and/or losses on foreign currency transactions and remeasurements, legal defense costs and litigation settlements, along with other miscellaneous income and expense items in other expense.

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

***Business Combinations***

We account for business combinations using the acquisition method of accounting, which requires assets acquired and liabilities assumed be recorded at their respective fair values as of the acquisition date. The excess consideration paid over the fair value of the assets acquired and liabilities assumed represents goodwill. The allocation of the purchase price requires management to make significant estimates in determining fair values. These estimates can include, but are not limited to, expected future cash flows, discount rates, and the expected use of the acquired assets. Transaction costs associated with business combinations are expensed when incurred. See "Note 4. Business Combinations."

***Discontinued Operations***

On May 14, 2020, we completed the sale of our ASC business. As a result, ASC is now reported as discontinued operations, and financial data for the ASC segment has been segregated and presented as discontinued operations for all periods presented. Accordingly, the results of operations from our ASC business are reported in the accompanying consolidated statements of comprehensive income as "discontinued operations, net of taxes" for the years ended December 31, 2022, 2021, and 2020. There were no related assets and liabilities classified as assets and liabilities of discontinued operations as of December 31, 2022 and 2021 in the accompanying balance sheets. In addition, cash flows from our ASC business are reported as cash flows from discontinued operations in the accompanying statements of cash flows for the years ended December 31, 2022, 2021, and 2020. See "Note 25. Discontinued Operations" for more information.

**NOTE 4. Business Combinations**

On December 29, 2020, GATX acquired Trifleet Leasing Holding B.V. ("Trifleet"), one of the largest tank container lessors in the world, for approximately €165 million ($203.2 million) in cash. In 2021, GATX paid a final €1.1 million ($1.4 million) attributable to post-closing adjustments. Transaction costs associated with this acquisition were approximately $3.1 million.

Headquartered in the Netherlands with offices worldwide, Trifleet owns and manages a fleet of tank containers leased to a diverse customer base in the chemical, industrial gas, energy, food, cryogenic and pharmaceutical industries, as well as to tank container operators.

The final purchase price allocation included $171.1 million to operating assets, $12.9 million to identifiable intangible assets, $23.2 million to other net liabilities acquired and $43.8 million to goodwill. Intangible assets include Trifleet's customer relationships and trade name with an estimated useful life of 25 and 10 years, respectively. Goodwill is primarily related to the value we expect to achieve from the growth of the business. Goodwill is reported in the Other segment and is not deductible for U.S. tax purposes. The acquisition was not significant in relation to our financial results and, therefore, pro-forma financial information has not been presented.

**NOTE 5. Supplemental Cash Flow Information**

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| **Supplemental Cash Flow Information (in millions)** |  |  |  |
| Interest paid (1) | $202.7 | $196.6 | $189.8 |
| Income taxes paid, net | 18.7 | 10.3 | 21.4 |

---

**________**

(1) Interest paid consisted of interest on debt obligations and interest rate swaps (net of interest received).

**NOTE 6. Leases** 

***GATX as Lessor***

We lease railcars, aircraft spare engines, tank containers, and other operating assets under full-service and net operating leases. We price full-service leases as an integrated service that includes amounts related to maintenance, insurance, and ad valorem taxes. In accordance with applicable guidance, we do not separate lease and non-lease components when reporting revenue for our full-service operating leases. In some cases, we lease railcars and tank containers that, at commencement, are classified as finance leases. For certain operating leases, revenue is based on equipment usage and is recognized when earned. Typically, our leases do not provide customers with renewal options or options to purchase the asset. Our lease agreements do not generally have residual value guarantees. We collect reimbursements from customers for damage to our railcars, as well as additional rental payments for usage above specified levels, as provided in the lease agreements.

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The following table shows the components of our lease revenue for the years ended December 31 (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Operating lease revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;Fixed lease revenue | $1058.3 | $1063.4 | $1020.9 |
| &nbsp;&nbsp;&nbsp;Variable lease revenue | 86.5 | 70.1 | 59.4 |
| Total operating lease revenue | $1144.8 | $1133.5 | $1080.3 |
| Finance lease revenue | 9.8 | 7.0 | 7.2 |
| Total lease revenue | $1154.6 | $1140.5 | $1087.5 |

---

In accordance with the terms of our leases with customers, we may earn additional revenue, primarily for customer liability repairs. This additional revenue is reported in other revenue in the statements of comprehensive income and were $81.5 million, $74.8 million and $88.9 million in 2022, 2021 and 2020.

The following table shows the components of our finance leases as of December 31 (in millions):

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| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Total contractual lease payments receivable | $110.4 | $106.9 |
| Estimated unguaranteed residual value of leased assets | 18.1 | 20.0 |
| Unearned income | (32.0) | (26.7) |
| Finance leases | $96.5 | $100.2 |

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The following table shows our future contractual receipts from our noncancelable operating and finance leases as of December 31, 2022 (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **Operating Leases (1)** | **Finance Leases** | **Total** |
| &nbsp;&nbsp;2023 | $986.5 | $24.0 | $1010.5 |
| &nbsp;&nbsp;2024 | 742.9 | 22.8 | 765.7 |
| &nbsp;&nbsp;2025 | 508.0 | 22.0 | 530.0 |
| &nbsp;&nbsp;2026 | 339.4 | 19.5 | 358.9 |
| &nbsp;&nbsp;2027 | 210.8 | 9.9 | 220.7 |
| Years thereafter | 561.1 | 12.2 | 573.3 |
|  | $3348.7 | $110.4 | $3459.1 |

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__________

(1) The future contractual receipts due under our full-service operating leases include executory costs such as maintenance, car taxes, and insurance.

***GATX as Lessee*** 

We lease assets, including railcars at North America, as well as other assets such as offices, maintenance facilities, and other general purpose equipment. The railcars are subleased to customers as part of our normal course of operations. Certain leases have options to purchase the underlying assets early, renew the lease, or purchase the underlying assets at the end of the lease term. The specific terms of the renewal and purchase options vary, and we did not include these amounts in our future contractual rental payments. Additionally, the contractual rental payments do not include amounts we are required to pay for licenses, taxes, insurance, and maintenance. Our lease agreements do not contain any material residual value guarantees. At December 31, 2022, we leased 5,183 railcars at Rail North America, all of which are accounted for as operating leases.

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

To calculate the right-of-use asset and lease liability for our leases, we use the implicit rate if readily determinable or when the implicit rate is not readily determinable, we use our incremental borrowing rate. Our incremental borrowing rate is the interest rate we estimate we would have to pay to borrow on a collateralized basis over a similar term of the lease payments. The implicit rate was measurable for railcars leased at Rail North America. For our other operating leases, we used our incremental borrowing rate. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term.

The following table shows the components of lease expense for the years ended December 31 (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Operating lease cost (1): |  |  |  |
| &nbsp;&nbsp;&nbsp;Fixed lease cost - operating leases | $41.4 | $40.0 | $53.3 |
| Finance lease cost: |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of right-of-use assets |  | 0.2 | 0.6 |
| &nbsp;&nbsp;&nbsp;Interest on lease liabilities |  |  | 0.2 |
| Total lease cost | $41.4 | $40.2 | $54.1 |

---

________

(1) Total operating lease cost includes amounts recorded in operating lease expense and selling, general and administrative expense. Operating lease cost also includes short-term leases, which are immaterial.

Operating lease cost includes amounts attributable to sale lease-back financing transactions for railcars we lease to customers. Lease revenue of $40.1 million for 2022 was recognized in connection with these operating leases compared to $40.7 million for 2021 and $64.3 million for 2020.

The following table shows the maturities of our lease liabilities as of December 31, 2022 (in millions):

---

| | |
|:---|:---|
| | **Operating Leases** |
| &nbsp;&nbsp;2023 | $41.0 |
| &nbsp;&nbsp;2024 | 38.9 |
| &nbsp;&nbsp;2025 | 36.2 |
| &nbsp;&nbsp;2026 | 44.8 |
| &nbsp;&nbsp;2027 | 38.7 |
| &nbsp;&nbsp;Thereafter | 98.4 |
| Total undiscounted lease payments | $298.0 |
| &nbsp;&nbsp;&nbsp;Less: amounts representing interest | (40.1) |
| Total discounted lease liabilities | $257.9 |

---

The following table shows assets recorded as finance leases as of December 31 (in millions):

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Railcars | $— | $1.5 |
| Less: allowance for depreciation |  |  |
| Finance leases, net of accumulated depreciation | $— | $1.5 |

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The following table shows the lease terms and discount rates related to leases as of December 31:

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Weighted-average remaining lease term (years): |  |  |
| &nbsp;&nbsp;&nbsp;Operating leases | 7.9 | 7.9 |
| &nbsp;&nbsp;&nbsp;Finance leases (1) |  |  |
| Weighted-average discount rate: |  |  |
| &nbsp;&nbsp;&nbsp;Operating leases | 3.58% | 3.40% |
| &nbsp;&nbsp;&nbsp;Finance leases | —% | 0.22% |

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________

(1) The weighted-average remaining lease term for outstanding finance leases was less than one year in 2022 and 2021.

The following table shows other information related to leases for the years ended December 31 (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating cash flows for operating leases | $42.4 | $40.5 | $58.5 |
| &nbsp;&nbsp;&nbsp;Financing cash flows for finance leases | 1.5 | 77.2 | 40.0 |
| Total cash for leases | $43.9 | $117.7 | $98.5 |
| Non-cash financing lease transactions (1) | $— | $45.1 | $64.9 |

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__________

(1) Non-cash financing lease transactions are a result of the reclassification from operating lease liability to finance lease liability upon notice of the intent to exercise an early buy-out option.

In 2022, we exercised options to acquire 21 railcars previously recorded on the balance sheet as a finance lease for $1.5 million, compared to the exercise of options to acquire 2,329 railcars for $77.2 million in 2021 and 732 railcars for $40.0 million in 2020.

**NOTE 7. Investments in Affiliated Companies** 

Investments in affiliated companies is composed of investments in domestic and foreign affiliates, and primarily include entities that lease aircraft spare engines.

The following table presents our investments in affiliated companies and our ownership percentage in those companies by segment as of December 31 (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Segment** | **2022** | **2021** | **Percentage<br>Ownership** |
| Rolls-Royce & Partners Finance (1) | Portfolio Management | $574.3 | $588.1 | 50.0% |
| RailPulse LLC | Rail North America | 0.8 | 0.3 | 13.8% |
| Investments in Affiliated Companies |  | $575.1 | $588.4 |  |

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__________

(1) Combined investment balances of a group of 50% owned domestic and foreign joint ventures with Rolls-Royce plc (collectively, the "RRPF affiliates").

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The following table shows our share of affiliates' earnings by segment for the years ended December 31 (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Rail North America | $0.5 | $— | $(0.1) |
| Portfolio Management | 45.4 | 56.5 | 95.9 |
| Share of affiliates' pre-tax earnings | 45.9 | 56.5 | 95.8 |
| Income taxes (1) | (12.3) | (55.3) | (33.6) |
| Share of affiliates' earnings, net of taxes | $33.6 | $1.2 | $62.2 |

---

__________

(1) Income taxes include expenses from deferred income tax adjustments of $39.7 million in 2021 due to an enacted corporate income tax rate increase in the United Kingdom and $12.3 million in 2020 due to the elimination of a previously announced corporate income tax rate reduction.

The following table shows our cash investments in and distributions by segment for the years ended December 31 (in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Cash Investments** | **Cash Investments** | **Cash Investments** | **Cash Distributions** | **Cash Distributions** | **Cash Distributions** |
| | **2022** | **2021** | **2020** | **2022** | **2021** | **2020** |
| Rail North America | $— | $0.4 | $— | $— | $— | $0.1 |
| Portfolio Management |  |  |  | 46.3 | 0.1 | 0.6 |
| Total | $— | $0.4 | $— | $46.3 | $0.1 | $0.7 |

---

***Summarized Financial Data of Affiliates***

The following table shows the aggregated operating results for the years ended December 31 for the affiliated companies we held at December 31 (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Revenues | $417.7 | $407.4 | $491.0 |
| Net gains on sales of assets | 22.9 | 79.5 | 115.7 |
| Net income | 73.9 | 5.0 | 146.1 |

---

The following table shows aggregated summarized balance sheet data for our affiliated companies as of December 31 (in millions):

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Current assets | $490.7 | $574.3 |
| Noncurrent assets | 4186.1 | 4389.4 |
| Total assets | $4676.8 | $4963.7 |
| Current liabilities | $631.8 | $492.6 |
| Noncurrent liabilities | 2916.3 | 3329.6 |
| Shareholders' equity | 1128.7 | 1141.5 |
| Total liabilities and shareholders' equity | $4676.8 | $4963.7 |

---

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

***Summarized Financial Data for the RRPF Affiliates***

Our affiliate investments include interests in each of the RRPF affiliates, a group of 50% owned domestic and foreign joint ventures with Rolls-Royce plc (or affiliates thereof, collectively "Rolls-Royce"), a leading manufacturer of commercial aircraft jet engines. The RRPF affiliates are primarily engaged in two business activities: lease financing of aircraft spare engines to a diverse group of commercial aircraft operators worldwide and lease financing of aircraft spare engines to Rolls-Royce for use in their engine maintenance programs. In aggregate, the RRPF affiliates owned 398 aircraft engines at December 31, 2022, of which 199 were on lease to Rolls-Royce. Aircraft engines are generally depreciated over a useful life of 20 to 25 years to an estimated residual value. Lease terms vary but typically range from 3 to 12 years. Rolls-Royce acts as manager for each of the RRPF affiliates and also performs substantially all required maintenance activities. Our share of affiliates' earnings (after-tax) from the RRPF affiliates was $33.2 million in 2022, $1.2 million in 2021, and $62.0 million in 2020. In 2022, financial results included $11.5 million (after-tax) of impairment losses related to aircraft spare engines in Russia that RRPF does not expect to recover. In 2021, financial results included $39.7 million of deferred tax expense due to an enacted corporate income tax rate increase in the United Kingdom. In 2020, financial results included $12.3 million of deferred tax expense due to the elimination of a previously announced corporate income tax rate reduction in the United Kingdom and a transaction involving the refinancing and sale of a group of aircraft spare engines at the RRPF affiliates. In this transaction, the RRPF affiliates sold 21 aircraft spare engines for total proceeds of $233.0 million in 2020. GATX's 50% share of the resulting pre-tax net gains was $35.3 million.

We derived the following financial information from the combined financial statements of the RRPF affiliates.

The following table shows condensed income statements of the RRPF affiliates for the years ending December 31 (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Lease revenue from third parties | $192.8 | $195.5 | $257.6 |
| Lease revenue from Rolls-Royce | 222.8 | 211.9 | 233.4 |
| Depreciation expense | (230.6) | (238.3) | (248.7) |
| Interest expense | (110.1) | (96.7) | (116.0) |
| Other expenses | (7.0) | (38.5) | (50.3) |
| Other income, including net gains on sales of assets | 22.9 | 79.5 | 115.7 |
| Income before income taxes | 90.8 | 113.4 | 191.7 |
| Income taxes (1) | (17.5) | (107.4) | (45.6) |
| Net income | $73.3 | $6.0 | $146.1 |

---

_________

(1)Represents income taxes directly attributable to the RRPF affiliates in the United Kingdom. Certain of the RRPF affiliates are disregarded entities for income tax purposes and, as a result, income taxes are incurred at the shareholder level.

The following table shows the condensed balance sheets of the RRPF affiliates as of December 31 (in millions):

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Current assets | $485.4 | $573.5 |
| Noncurrent assets, including operating assets, net of accumulated depreciation of $1,637.5 and $1,415.5 (a) | 4186.1 | 4389.4 |
| Total assets | $4671.5 | $4962.9 |
| Accounts payable and accrued expenses | $128.7 | $130.9 |
| Debt: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current | 503.1 | 361.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncurrent, net of adjustments for hedges | 2442.7 | 2845.1 |
| Other liabilities | 473.6 | 484.4 |
| Shareholders' equity | 1123.4 | 1140.7 |
| Total liabilities and shareholders' equity | $4671.5 | $4962.9 |

---

_________

(a) All operating assets were pledged as collateral for long-term debt obligations.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

&nbsp;&nbsp;&nbsp;&nbsp;The following table shows contractual future lease receipts from noncancelable leases of the RRPF affiliates as of December 31, 2022 (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **Rolls-Royce** | **Third Parties** | **Total** |
| &nbsp;&nbsp;&nbsp;2023 | $239.7 | $181.4 | $421.1 |
| &nbsp;&nbsp;&nbsp;2024 | 231.0 | 163.0 | 394.0 |
| &nbsp;&nbsp;&nbsp;2025 | 204.1 | 150.3 | 354.4 |
| &nbsp;&nbsp;&nbsp;2026 | 166.6 | 138.7 | 305.3 |
| &nbsp;&nbsp;&nbsp;2027 | 98.1 | 130.2 | 228.3 |
| &nbsp;&nbsp;Thereafter | 120.6 | 373.0 | 493.6 |
| &nbsp;&nbsp;Total | $1060.1 | $1136.6 | $2196.7 |

---

The following table shows the scheduled principal payments of debt obligations of the RRPF affiliates as of December 31, 2022 (in millions):

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;2023 | $506.9 |
| &nbsp;&nbsp;&nbsp;2024 | 164.1 |
| &nbsp;&nbsp;&nbsp;2025 | 210.6 |
| &nbsp;&nbsp;&nbsp;2026 | 465.6 |
| &nbsp;&nbsp;&nbsp;2027 | 317.9 |
| &nbsp;&nbsp;Thereafter | 1212.0 |
| &nbsp;&nbsp;Total debt principal (1) | $2877.1 |

---

__________

(1) All debt obligations are nonrecourse to the shareholders.

**NOTE 8. Debt** 

***Debt Obligations***

The following table shows the outstanding balances of our debt obligations and the applicable interest rates as of December 31 ($ in millions):

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Date of Issue** | **Final<br>Maturity** | **Interest Rate** | **2022** | **2021** |
| **Recourse Fixed Rate Debt** |  |  |  |  |  |
| Unsecured | 03/19/13 | 03/30/23 | 3.90% | $250 | $250 |
| Unsecured | 11/05/18 | 02/15/24 | 4.35% | 300.0 | 300.0 |
| Unsecured (1) | 12/22/16 | 05/23/24 | 0.85% | 112.4 | 119.4 |
| Unsecured (1) | 11/05/19 | 11/05/24 | 0.96% | 107.1 | 113.7 |
| Unsecured (1) | 03/20/20 | 03/20/25 | 1.00% | 107.1 | 113.7 |
| Unsecured | 02/06/15 | 03/30/25 | 3.25% | 300.0 | 300.0 |
| Unsecured (1) | 08/03/20 | 08/03/25 | 1.13% | 107.1 | 113.7 |
| Unsecured | 09/13/16 | 09/15/26 | 3.25% | 350.0 | 350.0 |
| Unsecured (1) | 10/27/21 | 10/27/26 | 0.90% | 24.6 | 26.1 |
| Unsecured (1) | 11/04/19 | 11/04/26 | 1.07% | 80.2 | 85.3 |
| Unsecured | 02/09/17 | 03/30/27 | 3.85% | 300.0 | 300.0 |
| Unsecured | 11/02/17 | 03/15/28 | 3.50% | 300.0 | 300.0 |
| Unsecured (1) | 10/27/21 | 10/27/28 | 1.17% | 55.6 | 59.1 |
| Unsecured | 05/07/18 | 11/07/28 | 4.55% | 300.0 | 300.0 |
| Unsecured | 01/31/19 | 04/01/29 | 4.70% | 500.0 | 500.0 |
| Unsecured | 05/12/20 | 06/30/30 | 4.00% | 500.0 | 500.0 |
| Unsecured | 02/03/21 | 06/01/31 | 1.90% | 400.0 | 400.0 |
| Unsecured (1) | 10/27/21 | 10/27/31 | 1.56% | 80.3 | 85.3 |
| Unsecured | 03/04/22 | 06/01/32 | 3.50% | 400.0 |  |
| Unsecured | 08/10/22 | 03/15/33 | 4.90% | 400.0 |  |
| Unsecured | 03/04/14 | 03/15/44 | 5.20% | 300.0 | 300.0 |
| Unsecured | 02/06/15 | 03/30/45 | 4.50% | 250.0 | 250.0 |
| Unsecured | 02/03/21 | 06/01/51 | 3.10% | 300.0 | 300.0 |
| Unsecured | 08/09/21 | 06/01/51 | 3.10% | 250.0 | 250.0 |
| Unsecured | 06/11/12 | 06/15/22 | 4.75% |  | 250.0 |
| Unsecured (1)(2) | 12/15/20 | 12/30/27 | 0.70% |  | 113.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total recourse fixed rate debt |  |  |  | $6074.4 | $5680 |
| **Recourse Floating Rate Debt** |  |  |  |  |  |
| Unsecured | 01/15/21 | 12/14/23 | 1.00% | $250 | $250 |
| Unsecured (1)(2) | 12/15/20 | 12/30/27 | 3.69% | 117.8 |  |
| Unsecured | 09/15/22 | 09/15/29 | 6.73% | 50.0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total recourse floating rate debt |  |  |  | $417.8 | $250.0 |
| Total debt principal |  |  |  | $6492.2 | $5930 |
| Unamortized debt discount and debt issuance costs |  |  |  | (49.1) | (43.6) |
| Debt adjustment for fair value hedges |  |  |  | (11.6) | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Debt |  |  |  | $6431.5 | $5887.5 |

---

__________

(1) Denominated in euros, but presented in U.S. dollars in this table.

(2) This term loan was originally issued on December 15, 2020 with a maturity date of December 31, 2022. During 2022, GATX increased the size of the term loan and extended the maturity date to December 30, 2027. On December 30, 2022, this term loan was repriced from fixed rate to floating rate.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The following table shows the scheduled principal payments of our debt obligations as of December 31, 2022 (in millions):

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;2023 | $500.0 |
| &nbsp;&nbsp;&nbsp;2024 | 519.5 |
| &nbsp;&nbsp;&nbsp;2025 | 514.1 |
| &nbsp;&nbsp;&nbsp;2026 | 454.9 |
| &nbsp;&nbsp;&nbsp;2027 | 417.8 |
| &nbsp;&nbsp;Thereafter | 4085.9 |
| &nbsp;&nbsp;Total debt principal | $6492.2 |

---

***Commercial Paper and Borrowings Under Bank Credit Facilities ($ in millions)***

---

| | | |
|:---|:---|:---|
| | **December 31** | **December 31** |
| | **2022** | **2021** |
| Balance | $17.3 | $18.1 |
| Weighted-average interest rate | 2.74% | 0.84% |

---

***Credit Lines and Facilities***

We have a $600 million, 5-year unsecured revolving credit facility in the United States. In 2022, we entered into an amendment, which extended the maturity on this facility by one year from May 2026 to May 2027 and replaced LIBOR with Term SOFR. This credit facility contains one additional extension option. As of December 31, 2022, the full $600 million was available under this facility. Additionally, we have a $250 million 3-year unsecured revolving credit facility in the United States. In 2022, we also entered into an amendment to this facility to extend the maturity by one year from May 2024 to May 2025 and to replace LIBOR with Term SOFR. This credit facility contains one additional extension option as well. As of December 31, 2022, the full $250 million was available under this facility.

In addition, our European subsidiaries have unsecured credit facilities with an aggregate limit of €35.0 million. As of December 31, 2022, €18.9 million was available under these credit facilities.

Annual commitment fees for GATX's credit facilities were $1.2 million for 2022, $1.2 million for 2021, and $1.2 million for 2020.

***Delayed Draw Term Loans***

On September 12, 2022, we executed a delayed draw term loan agreement in India which provided for a 5-year unsecured term loan in the aggregate principal amount of up to 2.3 billion Indian Rupees ($27.8 million as of December 31, 2022). Advances are allowed through March 31, 2023 pursuant to the terms of the agreement and any amounts borrowed and repaid may not be re-borrowed. The amounts borrowed under the loan agreement are required to be repaid no later than five years from the first drawdown date. As of December 31, 2022, no amount was drawn on this loan.

On December 14, 2020, we executed a delayed draw term loan agreement ("Term Loan") which provided for a 3-year term loan in the aggregate principal amount of up to $500 million. Advances were allowed from December 14, 2020 through April 17, 2021 pursuant to the terms of the agreement and any amounts borrowed and repaid could not be re-borrowed. The amounts borrowed under the Term Loan agreement are required to be repaid no later than December 14, 2023. In 2021, we drew $384 million on the Term Loan, terminated the remaining unused commitment of $116 million, and subsequently repaid $134 million of the outstanding amount. As of December 31, 2022, $250 million was drawn on the Term Loan.

***Restrictive Covenants***

Our $600 million and $250 million revolving credit facilities contain various restrictive covenants, including requirements to maintain a fixed charge coverage ratio and an asset coverage test. Our ratio of earnings to fixed charges, as defined in this facility, was 2.2 for the period ended December 31, 2022, which is in excess of the minimum covenant ratio of 1.2. At December 31, 2022, we were in compliance with all covenants and conditions of the facility. Some of our bank term loans have the same financial covenants as the facility.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The indentures for our public debt also contain various restrictive covenants, including limitation on liens provisions that restrict the amount of additional secured indebtedness that we may incur. As of December 31, 2022, this limit was $1.9 billion. Additionally, certain exceptions to the covenants permit us to incur an unlimited amount of purchase money and nonrecourse indebtedness. At December 31, 2022, we were in compliance with all covenants and conditions of the indentures.

At December 31, 2022, our European rail subsidiaries ("GATX Rail Europe" or "GRE") had outstanding term loans, public debt, and private placement debt balances totaling €740.0 million. The loans are guaranteed by GATX Corporation and are subject to similar restrictive covenants as the revolving credit facility noted above.

We do not anticipate any covenant violations nor do we expect that any of these covenants will restrict our operations or our ability to obtain additional financing. At December 31, 2022, we were in compliance with all covenants and conditions of all of our credit agreements.

**NOTE 9. Fair Value** 

The assets and liabilities that GATX records at fair value on a recurring basis consisted entirely of derivatives at December 31, 2022 and December 31, 2021.

In addition, we review long-lived assets, such as operating assets and facilities, investments in affiliates, and goodwill, for impairment whenever circumstances indicate that the carrying amount of these assets may not be recoverable or when assets may be classified as held for sale. We determine the fair value of the respective assets using Level 3 inputs, including estimates of discounted future cash flows (including net proceeds from sale), independent appraisals, and market comparables, as applicable.

Certain assets were subject to non-recurring Level 3 fair value measurements during 2022 and 2021 and continue to be held at December 31, 2022 and 2021. The fair value of such assets at the time of their measurement was $38.8 million in 2022 and included the Specialized Gas Vessels, our rail business in Russia, railcars and locomotives. The fair value of such assets at the time of their measurement at December 31, 2021 was $2.7 million and included locomotives. See "Note 10. Asset Impairments and Assets Held for Sale" for further information.

***Derivative Instruments***

*Fair Value Hedges*

We use interest rate swaps to manage the fixed-to-floating rate mix of our debt obligations by converting a portion of our 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 four instruments outstanding with an aggregate notional amount of $200.0 million as of December 31, 2022 with maturities ranging from 2025 to 2027 and five instruments outstanding with an aggregate notional amount of $300.0 million as of December 31, 2021 with maturities ranging from 2022 to 2027.

*Cash Flow Hedges*

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, forwards, and put/call options to hedge our exposure to fluctuations in the exchange rates of foreign currencies for certain loans and operating expenses denominated in non-functional currencies. We had one instrument outstanding with an aggregate notional amount of $110.1 million as of December 31, 2022 that matures in 2023 and one instrument outstanding with an aggregate notional amount of $101.7 million as of December 31, 2021 that matured in 2022. Within the next 12 months, we expect to reclassify $1.6 million ($1.2 million after-tax) of net losses on previously terminated derivatives from accumulated other comprehensive loss to interest expense. 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 expense immediately.

Certain 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

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

with credit risk related contingent features that were in a liability position as of December 31, 2022 was $12.1 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 tables show our derivative assets and liabilities that are measured at fair value (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | | **Significant Observable Inputs (Level 2)** | **Significant Observable Inputs (Level 2)** |
| |<br>**Balance Sheet Location** | **Fair Value<br>December 31, 2022** | **Fair Value<br>December 31, 2021** |
| **<u>Derivative Assets</u>** | | | |
| &nbsp;&nbsp;&nbsp;Interest rate contracts (1) | Other assets | $— | $1.4 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts (1) | Other assets |  | 3.6 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts (2) | Other assets | 0.7 | 3.9 |
| &nbsp;&nbsp;&nbsp;Total derivative assets |  | $0.7 | $8.9 |
| **<u>Derivative Liabilities</u>** |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts (1) | Other liabilities | $11.6 | $0.3 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts (1) | Other liabilities | 0.5 |  |
| &nbsp;&nbsp;&nbsp;Total derivative liabilities |  | $12.1 | $0.3 |

---

_________

(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. As of December 31, 2022 and December 31, 2021, all derivatives were classified as Level 2 in the fair value hierarchy. There were no derivatives classified as Level 1 or Level 3.

&nbsp;&nbsp;&nbsp;&nbsp;

The following table shows the amounts recorded on the balance sheet related to cumulative basis adjustments for fair value hedges as of December 31 (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Carrying Amount of the Hedged Assets/(Liabilities)** | **Carrying Amount of the Hedged Assets/(Liabilities)** | **Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)** | **Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)** |
|<br>**Line Item in the Balance Sheet in Which the Hedged Item is Included** | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;&nbsp;Recourse debt | $(195.2) | $(300.4) | $(11.6) | $1.1 |

---

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The following tables show the impacts of our derivative instruments on our statements of comprehensive income for the years ended December 31 (in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Amount of Loss (Gain) Recognized in Other Comprehensive (Loss) Income** | **Amount of Loss (Gain) Recognized in Other Comprehensive (Loss) Income** | **Amount of Loss (Gain) Recognized in Other Comprehensive (Loss) Income** | **Location of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss into Earnings** | **Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss into Earnings** | **Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss into Earnings** | **Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss into Earnings** |
|<br>**Derivative Designation** | **2022** | **2021** | **2020** | **Location of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss into Earnings** | **2022** | **2021** | **2020** |
| Derivatives in cash flow hedging relationships: | Derivatives in cash flow hedging relationships: | Derivatives in cash flow hedging relationships: | Derivatives in cash flow hedging relationships: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts | $— | $— | $(0.5) | Interest expense | $1.7 | $1.9 | $2.1 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts | (5.7) | (11.9) | 20.1 | Other (income) expense | (5.7) | (12.0) | 12.8 |
| &nbsp;&nbsp;&nbsp;Total | $(5.7) | $(11.9) | $19.6 | Total | $(4.0) | $(10.1) | $14.9 |

---

The following tables show the impact of our fair value and cash flow hedge accounting relationships, as well as the impact of our non-designated derivatives, on the statements of comprehensive income for the years ended December 31 (in millions):

---

| | | |
|:---|:---|:---|
| | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships** | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships** |
| | Interest (expense), net | Other income (expense) |
| **2022** |  |  |
| Total amounts of income and expense presented in the statements of comprehensive income in which the effects of fair value or cash flow hedges are recorded | $(214.0) | $(27.0) |
| **Gain (loss) on fair value hedging relationships** |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedged items | 14.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedging instruments | (14.1) |  |
| **Gain (loss) on cash flow hedging relationships** |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount of gain (loss) reclassified from accumulated other comprehensive loss into earnings | (1.7) |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount of gain (loss) reclassified from accumulated other comprehensive loss into earnings (1) |  | 5.7 |
| **Gain (loss) on non-designated derivative contracts** |  | 0.7 |

---

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

---

| | | |
|:---|:---|:---|
| | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships** | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships** |
| | Interest (expense), net | Other income (expense) |
| **2021** |  |  |
| Total amounts of income and expense presented in the statements of comprehensive income in which the effects of fair value or cash flow hedges are recorded | $(204.0) | $(3.7) |
| **Gain (loss) on fair value hedging relationships** |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedged items | 4.5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedging instruments | (4.5) |  |
| **Gain (loss) on cash flow hedging relationships** |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount of gain (loss) reclassified from accumulated other comprehensive loss into earnings | (1.9) |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount of gain (loss) reclassified from accumulated other comprehensive loss into earnings (1) |  | 12.0 |
| **Gain (loss) on non-designated derivative contracts** |  | 3.1 |

---

---

| | | |
|:---|:---|:---|
| | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships** | **Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships** |
| | Interest (expense), net | Other income (expense) |
| **2020** |  |  |
| Total amounts of income and expense presented in the statements of comprehensive income in which the effects of fair value or cash flow hedges are recorded | $(190.3) | $(13.0) |
| **Gain (loss) on fair value hedging relationships** |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedged items | (4.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedging instruments | 4.2 |  |
| **Gain (loss) on cash flow hedging relationships** |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount of gain (loss) reclassified from accumulated other comprehensive loss into earnings | (2.1) |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount of gain (loss) reclassified from accumulated other comprehensive loss into earnings (1) |  | (12.8) |
| **Gain (loss) on non-designated derivative contracts** |  | 6.2 |

---

_________

(1) These amounts are substantially offset by foreign currency remeasurement adjustments on related hedged instruments, also recognized in other income (expense).

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

***Other Financial Instruments***

Except for derivatives, as disclosed above, GATX has no other assets and liabilities measured at fair value on a recurring basis. The carrying amounts of cash and cash equivalents, restricted cash, rent and other receivables, accounts payable, and commercial paper and borrowings under bank credit facilities with maturities under one year approximate fair value due to the short maturity of those instruments. As of December 31, 2022, short-term investments of $148.5 million consisted of U.S. Treasury securities, which are classified as held-to-maturity and valued at amortized cost. We had no short-term investments as of December 31, 2021.

We estimate the fair values of 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 as of December 31 (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2022**<br>**Carrying<br>Amount** | **2022**<br>**Fair<br>Value** | **2021**<br>**Carrying<br>Amount** | **2021**<br>**Fair<br>Value** |
| **<u>Liabilities</u>** |  |  |  |  |
| Recourse fixed rate debt | $6045.1 | $5309.8 | $5666.1 | $6040.2 |
| Recourse floating rate debt | 417.8 | 417.0 | 250.0 | 250.0 |

---

**NOTE 10. Asset Impairments and Assets Held for Sale**

In 2022 we made the decision to exit Rail Russia, which is reported within the Rail International segment. This decision was due to the impacts of the Russia/Ukraine conflict on our business and the business risks associated with the geopolitical environment resulting from that conflict. The net assets of Rail Russia were classified as held for sale and adjusted to the lower of respective carrying amount or fair value less costs to dispose. As a result, an impairment loss of $14.6 million was recognized in 2022 and recorded in net gain on asset dispositions. The impairment charge included $1.2 million for the anticipated liquidation of the cumulative translation adjustment. We based the fair value of the net assets on our estimate of the expected sale proceeds. On January 31, 2023, we completed the sale of Rail Russia. See "Note 26. Subsequent Events".

In 2022, we made the decision to sell the Specialized Gas Vessels within the Portfolio Management segment. The Specialized Gas Vessels were classified as held for sale and adjusted to the lower of their respective carrying amounts or fair value less costs to dispose. As a result, impairment losses of $34.3 million were recognized in 2022. These impairments were driven by our decision to sell these vessels and resulted from the associated change in our expected use and holding periods for these assets. The impairment losses were included in net gain on asset dispositions. GATX sold two of the vessels in 2022. The fair value of the remaining impaired assets was $25.1 million as of December 31, 2022. We based the fair value of these assets on our estimate of the expected sales proceeds.

The following table summarizes the components of asset impairments for the years ended December 31 (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| **Attributable to Consolidated Assets** |  |  |  |
| Rail North America | $— | $2.4 | $0.3 |
| Rail International | 14.6 |  |  |
| Portfolio Management | 34.3 |  |  |
| Total | $48.9 | $2.4 | $0.3 |

---

Impairment losses at Rail International and Portfolio Management in 2022 were due to decisions to sell Rail Russia and the Specialized Gas Vessels, as noted above. At Rail North America, impairment losses were primarily attributable to railcars and locomotives with declines in value due to excessive damage or functional obsolescence.

In the consolidated statements of comprehensive income, impairment losses related to consolidated assets were included in net gain on asset dispositions.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The following table summarizes assets held for sale by business segment as of December 31 (in millions):

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Rail North America | $1.2 | $3.8 |
| Rail International | 13.7 |  |
| Portfolio Management | 25.1 |  |
| Total assets held for sale | $40.0 | $3.8 |

---

All assets held for sale at December 31, 2022 are expected to be sold within one year and are included in Other Assets on the balance sheet.

**NOTE 11. Pension and Other Post-Retirement Benefits** 

We maintain both funded and unfunded noncontributory defined benefit pension plans covering our domestic employees and the employees of our subsidiaries. We also have a funded noncontributory defined benefit pension plan related to a former business in the United Kingdom that has no active employees. The plans base benefits payable on years of service and/or final average salary. We base our funding policies for the pension plans on actuarially determined cost methods allowable under IRS regulations and statutory requirements in the UK.

In addition to the pension plans, we have other post-retirement plans that provide health care, life insurance, and other benefits for certain retired domestic employees who meet established criteria. Most domestic employees that retire with immediate benefits under our pension plan are eligible for health care and life insurance benefits. The other post-retirement plans are either contributory or noncontributory, depending on various factors.

Certain lump sum distributions paid to retirees triggered settlement accounting, resulting in the recognition of $7.1 million and $2.1 million of expense in 2022 and 2021.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

We use a December 31 measurement date for all of our plans. The following tables show pension obligations, plan assets, and other post-retirement obligations as of December 31 (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2022 Pension<br>Benefits** | **2021 Pension<br>Benefits** | **2022 Retiree<br>Health<br>and Life** | **2021 Retiree<br>Health<br>and Life** |
| **Change in Benefit Obligation** | | | | |
| Benefit obligation at beginning of year | $481.9 | $508.6 | $19.9 | $22.9 |
| Service cost | 7.7 | 8.7 | 0.2 | 0.2 |
| Interest cost | 10.1 | 8.1 | 0.4 | 0.3 |
| Actuarial gain | (103.4) | (3.1) | (3.2) | (2.0) |
| Benefits paid | (51.3) | (39.9) | (1.7) | (1.5) |
| Effect of foreign exchange rate changes | (3.2) | (0.5) |  |  |
| Benefit obligation at end of year | $341.8 | $481.9 | $15.6 | $19.9 |
| **Change in Fair Value of Plan Assets** |  |  |  |  |
| Plan assets at beginning of year | 462.1 | 465.5 |  |  |
| Actual return on plan assets | (97.4) | 34.3 |  |  |
| Effect of exchange rate changes | (4.1) | (0.5) |  |  |
| Company contributions | 14.5 | 2.7 | 1.7 | 1.5 |
| Benefits paid | (51.3) | (39.9) | (1.7) | (1.5) |
| Plan assets at end of year | $323.8 | $462.1 | $— | $— |
| **Funded Status at end of year** | $(18.0) | $(19.8) | $(15.6) | $(19.9) |
| **Amount Recognized** |  |  |  |  |
| Other liabilities and other assets (net) | $(18.0) | $(19.8) | $(15.6) | $(19.9) |
| Accumulated other comprehensive loss (income): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net actuarial loss (gain) | 69.7 | 75.8 | (7.4) | (4.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prior service credit |  |  | (0.6) | (0.8) |
| Accumulated other comprehensive loss (income) | 69.7 | 75.8 | (8.0) | (5.6) |
| Total recognized | $51.7 | $56.0 | $(23.6) | $(25.5) |
| After-tax amount recognized in accumulated other comprehensive loss (income) | $52.2 | $56.7 | $(6.0) | $(4.2) |

---

The aggregate accumulated benefit obligation for the defined benefit pension plans was $331.1 million at December 31, 2022 and $458.1 million at December 31, 2021.

The following table shows our pension plans that have a projected benefit obligation in excess of plan assets as of December 31 (in millions):

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Projected benefit obligations | $256.3 | $48.5 |
| Fair value of plan assets | 224.1 |  |

---

The following table shows our pension plans that have an accumulated benefit obligation in excess of plan assets as of December 31 (in millions):

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Accumulated benefit obligations | $24.8 | $42.1 |
| Fair value of plan assets |  |  |

---

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The following table shows the components of net periodic cost for the years ended December 31 (in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2022<br>Pension<br>Benefits** | **2021<br>Pension<br>Benefits** | **2020<br>Pension<br>Benefits** | **2022<br>Retiree Health and Life** | **2021<br>Retiree Health and Life** | **2020<br>Retiree Health and Life** |
| Service cost | $7.7 | $8.7 | $8.1 | $0.2 | $0.2 | $0.2 |
| Interest cost | 10.1 | 8.1 | 12.3 | 0.4 | 0.3 | 0.5 |
| Expected return on plan assets | (15.6) | (18.6) | (20.4) |  |  |  |
| Settlement accounting adjustment | 7.1 | 2.1 |  |  |  |  |
| Amortization of (1): |  |  |  |  |  |  |
| &nbsp;&nbsp;Unrecognized prior service credit |  |  |  | (0.2) | (0.2) | (0.2) |
| &nbsp;&nbsp;Unrecognized net actuarial loss (gain) | 8.6 | 13.3 | 12.7 | (0.3) | (0.3) | (0.4) |
| Net periodic cost | $17.9 | $13.6 | $12.7 | $0.1 | $— | $0.1 |

---

_________

(1) Amounts reclassified from accumulated other comprehensive loss.

The service cost component of net periodic cost is recorded in selling, general and administrative expense in the statements of comprehensive income, and the non-service components are recorded in other expense

We amortize the unrecognized prior service credit using a straight-line method over the average remaining service period of the employees we expect to receive benefits under the plan. We amortize the unrecognized net actuarial loss (gain), which is subject to certain averaging conventions, over the average remaining service period of active employees.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

We use the following assumptions to measure the benefit obligation, compute the expected long-term return on assets, and measure the periodic cost for our defined benefit pension plans and other post-retirement benefit plans for the years ended December 31:

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| **Domestic defined benefit pension plans** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Benefit Obligation at December 31:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount rate — salaried funded plans | 5.15% | 2.81% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount rate — salaried unfunded plans | 4.94% - 5.11% | 1.80% - 2.74% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount rate — hourly funded plan | 5.24% | 3.03% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash balance interest crediting rate — salaried funded plan | 3.99% | 3.09% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rate of compensation increases — salaried funded and unfunded plans | 3.00% | 3.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rate of compensation increases — hourly funded plans | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net Periodic Cost (Benefit) for the years ended December 31:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount rate — salaried funded and unfunded plans | 2.81% | 2.41% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount rate — hourly funded plan | 3.04% | 2.74% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected return on plan assets — salaried funded plan | 4.50% | 5.20% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected return on plan assets — hourly funded plan | 3.40% | 4.30% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rate of compensation increases — salaried funded and unfunded plans | 3.00% | 3.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rate of compensation increases — hourly funded plan | n/a | n/a |
| **Foreign defined benefit pension plan** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Benefit Obligation at December 31:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount rate | 4.90% | 1.90% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rate of pension-in-payment increases | 3.00% | 3.30% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net Periodic Cost (Benefit) for the years ended December 31:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount rate | 1.90% | 1.20% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected return on plan assets | 1.70% | 2.70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rate of pension-in-payment increases | 3.30% | 2.90% |
| **Other post-retirement benefit plans** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Benefit Obligation at December 31:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount rate - combined health | 5.05% | 2.44% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount rate - combined life insurance | 5.16% | 2.85% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rate of compensation increases | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net Periodic Cost (Benefit) for the years ended December 31:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount rate - combined health | 2.43% | 1.91% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount rate - combined life insurance | 2.85% | 2.45% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rate of compensation increases | n/a | n/a |

---

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

We calculate the present value of expected future pension and post-retirement cash flows as of the measurement date using a discount rate. We base the discount rate on yields for high-quality, long-term bonds with durations similar to that of our projected benefit obligation. We base the expected return on our plan assets on current and expected asset allocations, as well as historical and expected returns on various categories of plan assets. We routinely review our historical returns along with current market conditions to ensure our expected return assumption is reasonable and appropriate.

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| **Assumed Health Care Cost Trend Rates at December 31:** |  |  |
| **Health care cost trend assumed for next year** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Medical claims - pre age 65 | 6.40% | 6.20% |
| &nbsp;&nbsp;&nbsp;&nbsp;Medical claims - post age 65 | 5.75% | 5.46% |
| &nbsp;&nbsp;&nbsp;&nbsp;Prescription drugs claims - pre age 65 | 7.50% | 8.04% |
| &nbsp;&nbsp;&nbsp;&nbsp;Prescription drugs claims - post age 65 | 7.50% | 8.04% |
| &nbsp;&nbsp;&nbsp;&nbsp;Post age 65 Medicare Advantage Part D | 16.25% | 15.95% |
| **Rate to which the cost trend is expected to decline (the ultimate trend rate)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Medical claims | 4.50% | 4.50% |
| &nbsp;&nbsp;&nbsp;&nbsp;Prescription drugs claims | 4.50% | 4.50% |
| **Year that rate reaches the ultimate trend rate** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Medical claims | 2032 | 2029 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prescription drugs claims | 2031 | 2029 |

---

Our investment policies require that asset allocations of domestic and foreign funded pension plans be maintained at certain targets. The following table shows our weighted-average asset allocations of our domestic funded pension plans at December 31, 2022 and 2021, and current target asset allocation for 2022, by asset category:

---

| | | | |
|:---|:---|:---|:---|
| | | **Plan Assets for Salaried Employees at<br>December 31** | **Plan Assets for Salaried Employees at<br>December 31** |
| |<br>**Target** | **2022** | **2021** |
| **Asset Category** |  |  |  |
| Equity securities | 37.2% | 37.4% | 41.9% |
| Debt securities | 60.0% | 58.2% | 53.5% |
| Real estate | 2.8% | 3.2% | 2.2% |
| Cash | —% | 1.2% | 2.4% |
|  | 100.0% | 100.0% | 100.0% |

---

---

| | | | |
|:---|:---|:---|:---|
| | | **Plan Assets for Hourly Employees at<br>December 31** | **Plan Assets for Hourly Employees at<br>December 31** |
| |<br>**Target** | **2022** | **2021** |
| **Asset Category** |  |  |  |
| Equity securities | 19.1% | 18.8% | 19.7% |
| Debt securities | 79.0% | 77.6% | 77.5% |
| Real estate | 1.9% | 2.0% | 1.5% |
| Cash | —% | 1.6% | 1.3% |
|  | 100.0% | 100.0% | 100.0% |

---

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The following table shows the weighted-average asset allocations of our foreign funded pension plan at December 31, 2022 and 2021, and current target asset allocation for 2022, by asset category:

---

| | | | |
|:---|:---|:---|:---|
| | | **Plan Assets at<br>December 31** | **Plan Assets at<br>December 31** |
| |<br>**Target** | **2022** | **2021** |
| **Asset Category** |  |  |  |
| Debt securities | 100.0% | 98.9% | 100.0% |
| Cash | —% | 1.1% | —% |
|  | 100.0% | 100.0% | 100.0% |

---

The following table sets forth the fair value of our pension plan assets as of December 31 (in millions):

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Assets measured at net asset value (1): |  |  |
| &nbsp;&nbsp;&nbsp;Short-term investment collective trust fund | $4.1 | $9.1 |
| &nbsp;&nbsp;&nbsp;Common stock collective trust funds | 97.9 | 154.6 |
| &nbsp;&nbsp;&nbsp;Fixed income collective trust funds | 213.1 | 289.8 |
| &nbsp;&nbsp;&nbsp;Real estate collective trust funds | 8.7 | 8.6 |
| &nbsp;&nbsp;Total | $323.8 | $462.1 |

---

_______

(1) In accordance with the relevant accounting standards, investments measured at fair value using the net asset value per share (or its equivalent) practical expedient are not recorded in any specific category of the fair value hierarchy.

The following is a description of the valuation techniques and inputs used as of December 31, 2022 and 2021.

*Short-term investment collective trust fund*

We value the short-term investment collective trust fund based on the closing net asset values ("NAV") quoted by the funds. The short-term investment collective trust fund is a highly liquid investment in obligations of the U.S. Government, or its agencies or instrumentalities, and the related money market instruments. The short-term investment fund has no restrictions on redemption frequency or advance notice periods required for redemption. The fund seeks to provide safety of principal, daily liquidity, and a competitive yield over the long term.

*Common stock collective trust funds and fixed income collective trust funds*

We value common stock collective trust funds and fixed income collective trust funds based on the closing NAV prices quoted by the funds. None of the collective trust funds have restrictions on redemption frequency or advance notice periods required for redemption. The investment objective of each of the common stock funds is long-term total return through capital appreciation and current income. The fixed income funds are each designed to deliver safety and stability by preserving principal and accumulated earnings. The fixed income fund seeks to achieve, over an extended period of time, total returns comparable or superior to broad measures of the long-term domestic investment grade credit bond market.

*Real estate collective trust funds*

We value real estate collective trust funds based on the NAV provided by the funds' administrators. A lack of liquidity in the funds may limit or delay redemptions. The investment objective of the real estate funds, which are diversified by location and property type, is long-term return through property appreciation, current income, and timely sales.

The primary investing objective of the pension plans is to provide benefits to plan participants and their beneficiaries. To achieve this goal, we invest in a diversified portfolio of equities, debt, and real estate investments to maximize return and to keep long-term investment risk at a reasonable level. Equity investments are diversified across U.S. and non-U.S. stocks, growth and value stocks, and small cap and large cap stocks. Debt securities are predominately investments in long-term, investment-grade corporate bonds. Real estate investments include investments in funds that are diversified by location and property type.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

On a timely basis, but not less than twice a year, we formally review pension plan investments to ensure we adhere to investment guidelines and our stated investment approach. Our review also evaluates the reasonableness of our investment decisions and risk positions. We compare our investments' performance to indices and peers to determine if investment performance has been acceptable.

In 2023, we expect to contribute approximately $7.6 million to our pension and other post-retirement benefit plans. Additional contributions to the domestic funded pension plans will depend on investment returns on plan assets and actuarial experience.

The following table shows benefit payments, which reflect expected future service (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **Funded Plans** | **Unfunded Plans** | **Retiree Health and Life** |
| 2023 | $27.3 | $5.6 | $2.0 |
| 2024 | 27.3 | 2.3 | 1.9 |
| 2025 | 27.2 | 2.3 | 1.7 |
| 2026 | 27.0 | 2.2 | 1.6 |
| 2027 | 26.0 | 2.2 | 1.4 |
| Years 2028-2032 | 124.2 | 10.4 | 5.5 |
| Total | $259.0 | $25.0 | $14.1 |

---

In addition to our defined benefit plans, we have two 401(k) retirement savings plans available to substantially all salaried employees and certain other employee groups. We may contribute to the plans as specified by their respective terms and as our Board of Directors determines. Contributions to our 401(k) retirement plans were $2.3 million for 2022, $2.3 million for 2021, and $2.3 million for 2020.

&nbsp;&nbsp;&nbsp;&nbsp;

**NOTE 12. Share-Based Compensation** 

We provide equity awards to our employees under the GATX Corporation 2012 Incentive Award Plan, including grants of non-qualified stock options, restricted stock units, performance shares, and phantom stock awards. We previously granted stock appreciation rights under this plan as well; however, no stock appreciation rights were granted in 2022, 2021, or 2020. As of December 31, 2022, 5.4 million shares were authorized under the 2012 Plan and 2.3 million shares were available for future issuance. We recognize compensation expense for our equity awards in selling, general and administrative expenses over the applicable service period of each award. Share-based compensation expense was $12.7 million for 2022, $17.4 million for 2021, and $15.9 million for 2020, and the related tax benefits were $3.2 million for 2022, $4.4 million for 2021, and $4.0 million for 2020.

***Stock Options and Stock Appreciation Rights***

Stock options and stock appreciation rights entitle the holder to purchase shares of common stock for periods up to seven years from the grant date. Stock appreciation rights entitle the holder to receive the difference between the market price of our common stock at the time of exercise and the exercise price, either in shares of common stock, cash, or a combination thereof, at our discretion. Stock options entitle the holder to purchase shares of our common stock at a specified exercise price. The dividends that accrue on all stock options and stock appreciation rights are paid upon vesting and continue to be paid until the stock options or stock appreciation rights are exercised, canceled, or expire. The exercise price for stock options and stock appreciation rights is equal to the average of the high and low trading prices of our common stock on the date of grant. We recognize compensation expense on a straight-line basis over the vesting period of the award, which is generally three years.

The estimated fair value of a stock option or stock appreciation right is the sum of the value we derive using the Black-Scholes option pricing model and the present value of dividends we expect to pay over the expected term of the award. The Black-Scholes valuation incorporates various assumptions, including expected term, expected volatility, and risk free interest rates. We base the expected term on historical exercise patterns and post-vesting terminations, and we base the expected volatility on the historical volatility of our stock price over a period equal to the expected term. We use risk-free interest rates that are based on the implied yield on recently-issued U.S. Treasury zero-coupon bonds with a term comparable to the expected term. No stock appreciation rights were issued during 2022, 2021, and 2020.

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The following table shows the weighted-average fair value for our stock options and the assumptions we used to estimate fair value:

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Weighted-average estimated fair value | $34.77 | $29.56 | $22.50 |
| Quarterly dividend rate | $0.52 | $0.50 | $0.48 |
| Expected term of stock options, in years | 4.3 | 4.3 | 4.2 |
| Risk-free interest rate | 1.6% | 0.3% | 1.3% |
| Dividend yield | 2.0% | 2.2% | 2.5% |
| Expected stock price volatility | 35.0% | 34.4% | 28.5% |
| Present value of dividends | $8.58 | $8.61 | $7.89 |

---

The following table shows information about outstanding stock options and stock appreciation rights for the year ended December 31, 2022:

---

| | | |
|:---|:---|:---|
| | **Number of Stock Options and Stock Appreciation Rights<br>(in thousands)** | **Weighted-Average Exercise Price** |
| Outstanding at beginning of the year | 1189 | $73.94 |
| Granted | 284 | 103.15 |
| Exercised | (300) | 63.07 |
| Forfeited/Cancelled | (172) | 94.04 |
| Expired |  | 79.89 |
| Outstanding at end of the year | 1001 | 82.04 |
| Vested and exercisable at end of the year | 660 | 75.00 |

---

The following table shows the aggregate intrinsic value of stock options and stock appreciation rights exercised in 2022, 2021, and 2020, and the weighted-average remaining contractual term and aggregate intrinsic value of stock options and stock appreciation rights outstanding and vested as of December 31, 2022:

---

| | | |
|:---|:---|:---|
| **Stock Options and Stock Appreciation Rights** | **Weighted-Average Remaining Contractual Term<br>(Years)** | **Aggregate Intrinsic Value<br>(in millions)** |
| Exercised in 2020 |  | $7.6 |
| Exercised in 2021 |  | 22.5 |
| Exercised in 2022 |  | 13.4 |
| Outstanding at December 31, 2022 (a) | 3.9 | 24.3 |
| Vested and exercisable at December 31, 2022 | 3.1 | 20.7 |

---

_______

(a) As of December 31, 2022, 0 stock appreciation rights and 1,001,359 stock options were outstanding.

Total cash received from employees for exercises of stock options during the years ended December 31, 2022, 2021, and 2020 was $30.9 million, $21.9 million, and $6.6 million. As of December 31, 2022, we had $6.2 million of unrecognized compensation expense related to nonvested stock options, which we expect to recognize over a weighted-average period of 1.8 years.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

***Restricted Stock Units and Performance Shares***

Restricted stock units entitle the recipient to receive a specified number of restricted shares of common stock upon vesting. Restricted stock units do not carry voting rights and are not transferable prior to the expiration of a specified restriction period, which is generally three years, as determined by the Compensation Committee of the Board of Directors ("Compensation Committee"). We accrue dividends on all restricted stock units and pay those dividends when the awards vest. We recognize compensation expense for these awards over the applicable vesting period.

Performance shares are restricted shares that we grant to key employees for achieving certain strategic objectives. The shares convert to common stock at the end of a specified performance period if predetermined performance goals are achieved, as determined by the Compensation Committee. We estimate the number of shares we expect will vest as a result of actual performance against the performance criteria at the time of grant to determine total compensation expense to be recognized. We reevaluate the estimate annually and adjust total compensation expense for any changes to the estimate of the number of shares we expect to vest. The performance shares granted include an option to settle shares earned in cash upon vesting for certain eligible employees. As a result, these awards are accounted for as liability awards and recorded in other liabilities. The liability and related compensation expense is adjusted to reflect the fair value of the underlying shares at the end of each reporting period. We recognize compensation expense for these awards over the applicable vesting period, which is generally three years.

We value our restricted stock units and performance share awards using the average of the high and low values of our common stock on the grant date of the awards. As of December 31, 2022, there was $8.3 million of unrecognized compensation expense related to these awards, which we expect to be recognized over a weighted-average period of 1.8 years.

The following table shows information about restricted stock units and performance shares for the year ended December 31, 2022:

---

| | | |
|:---|:---|:---|
| | **Number of Share Units Outstanding (in thousands)** | **Weighted-Average Grant-Date Fair Value** |
| **Restricted Stock Units:** | | |
| Nonvested at beginning of the year | 107 | $79.37 |
| Granted | 42 | 103.37 |
| Vested | (36) | 72.50 |
| Forfeited | (5) | 92.63 |
| Nonvested at end of the year | 108 | 90.47 |
| **Performance Shares:** |  |  |
| Nonvested at beginning of the year | 88 | $83.79 |
| Granted | 62 | 101.03 |
| Net decrease due to estimated performance | (4) | 84.18 |
| Vested | (40) | 80.63 |
| Forfeited | (33) | 96.27 |
| Nonvested at end of the year | 73 | 94.79 |

---

The total fair value of restricted stock units and performance shares that vested during the year was $7.7 million in 2022, $11.6 million in 2021, and $10.2 million in 2020.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

***Non-Employee Director Awards***

We grant awards to non-employee directors as a component of their compensation for service on our board of directors. Prior to April 2022, these awards were in the form of phantom stock. In accordance with the terms of the phantom stock awards, each director is credited with a quantity of units that equate to, but are not, common shares. Phantom stock awards are dividend participating, and all dividends are reinvested in additional phantom shares at the average of the high and low trading prices of our stock on the dividend payment date. At the expiration of each director's service on the board of directors, or in accordance with his or her deferral election, whole units of phantom stock will be settled with shares of common stock and fractional units will be paid in cash. In 2022, we granted 11,133 units of phantom stock and there were 240,463 units outstanding as of December 31, 2022.

Effective January 1, 2022, our plan was amended, and these awards are now in the form of restricted stock units. Restricted stock awards are dividend participating and, for awards elected to defer, dividends are reinvested in additional restricted stock shares at the average of the high and low trading prices of our stock on the dividend payment date. At the expiration of each director's service on the board of directors, or in accordance with the deferral election, whole units of restricted stock will be settled with shares of common stock and fractional units will be paid in cash. In 2022, we granted 7,896 restricted stock units to directors and there were 9,044 units outstanding as of December 31, 2022.

**NOTE 13. Income Taxes** 

The following table shows the components of income before income taxes, excluding affiliates, for the years ended December 31 (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| **Income before Income Taxes** |  |  |  |
| Domestic | $55.8 | $40.9 | $(2.0) |
| Foreign | 121.3 | 154.2 | 127.3 |
| Total | $177.1 | $195.1 | $125.3 |

---

The following table shows income taxes, excluding domestic and foreign affiliates, for the years ended December 31 (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| **Income Tax Expense** |  |  |  |
| **Current** |  |  |  |
| Domestic: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | $0.2 | $0.1 | $(3.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local |  | 0.3 | 0.3 |
|  | $0.2 | $0.4 | $(3.1) |
| Foreign | 18.3 | 18.6 | 11.3 |
| &nbsp;&nbsp;Total Current | $18.5 | $19.0 | $8.2 |
| **Deferred** |  |  |  |
| Domestic: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | $11.1 | $6.7 | $3.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local | 2.7 | 3.0 | 0.9 |
|  | $13.8 | $9.7 | $4.5 |
| Foreign | 22.5 | 24.5 | 24.6 |
| &nbsp;&nbsp;Total Deferred | $36.3 | $34.2 | $29.1 |
| Income taxes | $54.8 | $53.2 | $37.3 |

---

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The following table is a reconciliation between the federal statutory income tax rate and our effective income tax rate for the years ended December 31 (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Income taxes at federal statutory rate | $37.2 | $41 | $26.3 |
| Adjust for effect of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign earnings taxed at applicable statutory rates | 18.0 | 10.2 | 9.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign deferred tax rate change impact | (2.9) | (0.3) | (0.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Nondeductible compensation | 2.6 | 1.9 | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | (2.3) | (3.5) | (1.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;State income taxes | 2.6 | 1.9 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;State income tax rate change impact | (8.3) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;State net operating loss valuation allowance | 9.9 | 1.0 | 1.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | (2.0) | 1.0 | 1.3 |
| Income taxes | $54.8 | $53.2 | $37.3 |
| Effective income tax rate | 30.9% | 27.3% | 29.8% |

---

In 2022, our effective tax rate was 30.9% compared to 27.3% in 2021 and 29.8% in 2020.

The adjustment for foreign earnings in each year reflected the impact of applicable statutory tax rates on income earned at our foreign subsidiaries. Compensation is adjusted for the difference between the deductibility of these expenses under the U.S. tax law versus U.S. GAAP. State income taxes are recognized on domestic pretax income or loss. The amount of our domestic income subject to state taxes relative to our total worldwide income impacts the effect state income tax has on our overall income tax rate.

Separately, our affiliates incurred income taxes of $12.3 million, $55.3 million, and $33.6 million respectively in 2022, 2021, and 2020. During 2021 and 2020, changes in the statutory tax rate of the United Kingdom resulted in one-time tax expense adjustments of $39.7 million and $12.3 million, respectively.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The following table shows the significant components of our deferred tax liabilities and assets as of December 31 (in millions):

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| **Deferred Tax Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Book/tax basis difference due to depreciation | $1157.4 | $1093.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets | 61.1 | 68.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments in affiliated companies | 25.4 | 27.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease accounting | 27.5 | 29.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible amortization | 1.8 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 4.1 | 5.4 |
| Total deferred tax liabilities | $1277.3 | $1225.7 |
| **Deferred Tax Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liability | $64.8 | $72.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal net operating loss | 83.8 | 87.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign tax credit | 0.8 | 0.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation allowance on foreign tax credit | (0.8) | (0.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal interest limitation carryforward | 38.9 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;State net operating loss | 43.1 | 45.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation allowance on state net operating loss | (22.7) | (14.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;State interest limitation carryforward | 4.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign net operating loss | 0.3 | 1.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accruals not currently deductible for tax purposes | 18.3 | 18.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for losses | 1.0 | 1.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension and post-retirement benefits | 8.2 | 9.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 5.4 | 3.2 |
| Total deferred tax assets | $245.8 | $224.7 |
| Net deferred tax liabilities | $1031.5 | $1001.0 |

---

Deferred income taxes are the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We expect at this time to continue reinvestment of foreign earnings outside the U.S. indefinitely. Consequently, our tax provision does not include any deferred tax costs that might arise due to book versus tax basis differences in investments in foreign subsidiaries. Under provisions of the territorial tax system, future dividend distributions from foreign subsidiaries and affiliates are generally exempt from U.S. income tax. Taxes may arise from withholding taxes or on foreign exchange or other gains recognized in connection with the basis differences in our investments in foreign subsidiaries. The ultimate tax cost of repatriating these earnings depends on tax laws in effect and other circumstances at the time of distribution.

At December 31, 2022, we had a U.S. federal tax net operating loss carryforward of $399.2 million that can be carried forward indefinitely until the loss is fully recovered. The utilization of net operating losses carried forward are limited to 80% of future taxable income. We also had foreign tax credits of $0.8 million that expire after 2027. We have recorded a $0.8 million valuation allowance related to these credits, as we believe it is more likely than not that we will be unable to utilize them.

At December 31, 2022, due to a provision of the Tax Cuts and Jobs Act of 2017 (the "Tax Act"), the deductibility of interest expense may be limited on our federal tax return. Disallowed amounts can be carried forward indefinitely until the expense is fully utilized, as a result of this limitation, we have a federal interest expense carryforward amount of $185.4 million.

At December 31, 2022, we had state tax net operating losses of $43.1 million, net of federal benefits that are scheduled to expire at various times beginning in 2023. We have recorded a $22.7 million valuation allowance related to state net operating losses, as we believe it is more likely than not that we will be unable to use all of these losses. Also, as a result of the provision in the Tax Act limiting the deductibility of interest expense on our federal tax return, as referenced above, we had a corresponding state interest limitation of $4.7 million, net of federal benefits, that can be carried forward indefinitely until the expense is fully utilized.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

At December 31, 2022, we had foreign net operating losses of $0.3 million, with various carryforward periods. It is more likely than not that we will be able to use these losses in the future, and therefore, no valuation allowance is required at this time.

At December 31, 2022, our gross liability for unrecognized tax benefits was $9.4 million. Of this amount $9.2 million is attributed to our foreign operations. We recognize interest and penalties related to unrecognized tax benefits as income tax expense. We have not accrued any amounts for penalties. To the extent interest is not assessed or is otherwise reduced with respect to uncertain tax positions, we will record any required adjustment as a reduction of income tax expense.

We file one separate federal income tax return and one consolidated federal income tax return with our domestic subsidiaries in the U.S. jurisdiction, as well as tax returns in various state and foreign jurisdictions. As of December 31, 2022, all audits or statutes of limitations with respect to our federal tax returns for years prior to 2019 have been closed or expired. Additionally, we currently have no open federal income tax audits, one open state income tax audit, and two open income tax audits on our foreign operations.

**NOTE 14. Concentrations** 

***Concentration of Revenues***

We derived revenue from a wide range of industries and companies. In 2022, we generated approximately 24% of our total revenues from customers in the petroleum industry, 23% from the transportation industry, 22% from the chemical industry, 12% from food/agriculture industries and 9% from the mining, minerals and aggregates industry. Our foreign identifiable revenues were primarily derived in Canada, Germany, Poland, United Kingdom, and Austria.

***Concentration of Credit Risk***

We did not have revenue concentrations greater than 10% from any particular customer for any of the years ended December 31, 2022, 2021, and 2020. Under our lease agreements with customers, we typically retain legal ownership of the assets unless such assets have been financed by sale-leasebacks. We perform a credit evaluation prior to approval of a lease contract. Subsequently, we monitor the creditworthiness of the customer and the value of the collateral on an ongoing basis. We maintain an allowance for losses to provide for credit losses inherent in our receivables balances.

***Concentration of Labor Force***

As of December 31, 2022, collective bargaining agreements covered approximately 34% of our employees, of which agreements covering 23% of employees will expire within the next year. The hourly employees at our US service centers are represented by the United Steelworkers. Employees at three of Rail North America's Canadian service centers are represented by Unifor and the Employee Shop Committee of Rivière-des-Prairies. Certain employees of GATX Rail Europe are represented by one union in Poland.

**NOTE 15. Commercial Commitments** 

We have entered into various commercial commitments, including standby letters of credit, performance bonds, and guarantees 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 as of December 31 (in millions):

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Standby letters of credit and performance bonds | $9.0 | $9.0 |
| Derivative guarantees | 1.9 | 0.5 |
| Total commercial commitments (1) | $10.9 | $9.5 |

---

_______

(1) There were no liabilities recorded on the balance sheet for commercial commitments at December 31, 2022 and December 31, 2021. As of December 31, 2022, our outstanding commitments expire in 2023 through 2026. We are not aware of any event that would require us to satisfy any of our commitments.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

We are 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. We also guarantee payment by an affiliate for final settlement of certain derivatives if they are in a liability position at expiration. The amount of the payment is ultimately determined by the value of the derivative upon final settlement.

**NOTE 16. 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 weight shares issued or reacquired during the year for the portion of the year 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 for the years ended December 31 (in millions, except per share amounts):

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| **Numerator:** |  |  |  |
| Net income from continuing operations | $155.9 | $143.1 | $150.2 |
| Net income from discontinued operations |  |  | 1.1 |
| Net income | $155.9 | $143.1 | $151.3 |
| **Denominator:** |  |  |  |
| Weighted-average shares outstanding - basic | 35.4 | 35.4 | 35.0 |
| Effect of dilutive securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity compensation plans | 0.5 | 0.6 | 0.4 |
| Weighted-average shares outstanding - diluted | 35.9 | 36.0 | 35.4 |
| Basic earnings per share from continuing operations | $4.41 | $4.04 | $4.30 |
| Basic earnings per share from discontinued operations |  |  | 0.03 |
| Basic earnings per share from consolidated operations | $4.41 | $4.04 | $4.33 |
| Diluted earnings per share from continuing operations | $4.35 | $3.98 | $4.24 |
| Diluted earnings per share from discontinued operations |  |  | 0.03 |
| Diluted earnings per share from consolidated operations | $4.35 | $3.98 | $4.27 |

---

**NOTE 17. Goodwill**

Our goodwill was $117.2 million as of December 31, 2022 and $123.0 million as of December 31, 2021. In the fourth quarter of 2022, we performed a review for impairment of goodwill, and concluded that goodwill was not impaired. The following table summarizes the components of goodwill by segment for the years ended December 31 (in millions):

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Rail North America | $23.8 | $23.8 |
| Rail International | 55.1 | 58.6 |
| Other (1) | 38.3 | 40.6 |
| Total goodwill | $117.2 | $123.0 |

---

________

(1) Goodwill at the Other segment relates to Trifleet Leasing.

The changes in the carrying amount of our goodwill for 2022 resulted from fluctuations in foreign currency exchange rates.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**NOTE 18. Allowance for Losses** 

The following table shows changes in the allowance for losses at December 31 (in millions):

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Beginning balance | $6.2 | $6.5 |
| Provision for losses | 0.5 | 0.1 |
| Charges to allowance | (0.7) | (0.5) |
| Recoveries and other, including foreign exchange adjustments | (0.1) | 0.1 |
| Ending balance | $5.9 | $6.2 |

---

**NOTE 19. Other Assets and Other Liabilities**

The following table shows the components of other assets reported on our balance sheets as of December 31 (in millions):

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Inventory | $60.2 | $52.0 |
| Assets held for sale (1) | 40.0 | 3.8 |
| Office furniture, fixtures and other equipment, net of accumulated depreciation | 29.5 | 30.2 |
| Prepaid pension | 14.2 | 28.6 |
| Prepaid items | 12.7 | 42.0 |
| Deferred financing costs | 2.5 | 2.8 |
| Derivatives | 0.7 | 8.9 |
| Other | 111.6 | 96.7 |
| Total other assets | $271.4 | $265.0 |

---

________

(1) See "Note 10. Asset Impairments and Assets Held for Sale" for additional information.

The following table shows the components of other liabilities reported on our balance sheets as of December 31 (in millions):

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Accrued pension and other post-retirement benefits | $47.8 | $68.3 |
| Derivatives | 12.1 | 0.3 |
| Environmental accruals | 4.7 | 3.5 |
| Other | 37.4 | 40.3 |
| Total other liabilities | $102.0 | $112.4 |

---

**NOTE 20. Shareholders' Equity** 

On January 25, 2019, our board of directors ("Board") approved a $300 million share repurchase program, pursuant to which we are authorized to purchase shares of our common stock in the open market, in privately negotiated transactions, or otherwise, including pursuant to Rule 10b5-1 plans. The share repurchase program does not have an expiration date, does not obligate the Company to repurchase any dollar amount or number of shares of common stock, and may be suspended or discontinued at any time. The timing of share repurchases will be dependent on market conditions and other factors. During 2022, we repurchased 0.5 million shares of common stock for $47.2 million. In 2021, we purchased 0.1 million shares of common stock for $13.1 million. In 2020, we did not repurchase any shares of common stock.

In accordance with our certificate of incorporation, 120 million shares of common stock are authorized, at a par value of $0.625 per share. As of December 31, 2022, 68.6 million shares were issued and 35.3 million shares were outstanding.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The following shares of common stock were reserved as of December 31, 2022 (in millions):

---

| | |
|:---|:---|
| GATX Corporation 2004 Equity Incentive Compensation Plan | 2.1 |
| GATX Corporation 2012 Incentive Award Plan | 5.4 |
| Total | 7.5 |

---

Our certificate of incorporation also authorizes five million shares of preferred stock at a par value of $1.00 per share. We had no outstanding shares of preferred stock as of December 31, 2022 or December 31, 2021.

**NOTE 21. Accumulated Other Comprehensive Loss** 

The following table shows the change in components for accumulated other comprehensive loss (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Foreign Currency Translation Gain (Loss)** | **Unrealized Loss on Derivative Instruments** | **Post-Retirement Benefit Plans** | **Total** |
| Balance at December 31, 2019 | $(68.1) | $(10.1) | $(85.4) | $(163.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in component | 24.4 | (20.4) | (3.8) | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments into earnings (1) |  | 14.9 | 12.1 | 27.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax effect |  | 1.0 | (2.1) | (1.1) |
| Balance at December 31, 2020 | (43.7) | (14.6) | (79.2) | (137.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in component | (51.7) | 12.5 | 22.7 | (16.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments into earnings (1) |  | (10.1) | 12.8 | 2.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax effect |  | (0.4) | (8.9) | (9.3) |
| Balance at December 31, 2021 | (95.4) | (12.6) | (52.6) | (160.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in component | (56.7) | 5.8 | (1.6) | (52.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments into earnings (1) |  | (4.0) | 8.1 | 4.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax effect |  | (0.4) | (2.2) | (2.6) |
| Balance at December 31, 2022 | $(152.1) | $(11.2) | $(48.3) | $(211.6) |

---

________

(1) See "Note 9. Fair Value" and "Note 11. Pension and Other Post-Retirement Benefits" for impacts of the reclassification adjustments on the statements of comprehensive income.

**NOTE 22. Foreign Operations** 

For the years ended December 31, 2022, 2021, and 2020, we did not derive revenues in excess of 10% of our consolidated revenues from any one foreign country. Additionally, at December 31, 2022 and 2021, we did not have more than 10% of our identifiable assets in any one foreign country.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The following table shows our domestic and foreign revenues and identifiable assets for the years ended or as of December 31 (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| **Revenues From Continuing Operations** |  |  |  |
| Foreign | $466.9 | $468.5 | $374.9 |
| United States | 806.1 | 788.9 | 834.3 |
| Total | $1273.0 | $1257.4 | $1209.2 |
| **Identifiable Assets From Continuing Operations** |  |  |  |
| Foreign | $3910.2 | $3783.3 | $3438.6 |
| United States | 6161.8 | 5758.4 | 5499.0 |
| Total | $10072.0 | $9541.7 | $8937.6 |

---

**NOTE 23. Legal Proceedings and Other Contingencies**

GATX and its subsidiaries have been named as defendants in various legal actions and claims, governmental proceedings, and private civil suits arising in the ordinary course of business, including environmental matters, workers' compensation claims, and other personal injury claims. Some of these proceedings include claims for punitive as well as compensatory damages. Several of our subsidiaries have also been named as defendants or co-defendants in cases alleging injury caused by exposure to asbestos. The plaintiffs seek an unspecified amount of damages based on common law, statutory, or premises liability. In addition, demand has been made against GATX for asbestos-related claims under limited indemnities given in connection with the sale of certain of our former 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.

***Litigation Accruals***

We have recorded accruals totaling $4.6 million at December 31, 2022 for losses related to those litigation matters that we believe to be probable and for which an amount of loss can be reasonably estimated. However, we cannot determine a reasonable estimate of the maximum possible loss or range of loss for these matters given that they are at various stages of the litigation process and each case is subject to the inherent uncertainties of litigation (such as the strength of our legal defenses and the availability of insurance recovery). Although the maximum amount of liability that may ultimately result from any of these matters cannot be predicted with absolute certainty, management expects that none of the matters for which we have recorded an accrual, when ultimately resolved, will have a material adverse effect on our consolidated financial position or liquidity. It is possible, however, that the ultimate resolution of one or more of these matters could have a material adverse effect on our results of operations in a particular quarter or year if such resolution results in liability that materially exceeds the accrued amount.

In addition, we have other litigation matters pending for which we have not recorded any accruals because our potential liability for those matters is not probable or cannot be reasonably estimated based on currently available information. For those matters where we have not recorded an accrual but a loss is reasonably possible, we cannot determine a reasonable estimate of the maximum possible loss or range of loss for these matters given that they are at various stages of the litigation process and each case is subject to the inherent uncertainties of litigation (such as the strength of our legal defenses and the availability of insurance recovery). Although the maximum amount of liability that may ultimately result from any of these matters cannot be predicted with absolute certainty, management expects that none of the matters for which we have not recorded an accrual, when ultimately resolved, will have a material adverse effect on our consolidated financial position or liquidity. It is possible, however, that the ultimate resolution of one or more of these matters could have a material adverse effect on our results of operations in a particular quarter or year if such resolution results in a significant liability for GATX.

***Environmental***

Our operations are subject to extensive federal, state, and local environmental regulations. Our operating procedures include practices to protect the environment from the risks inherent in full service railcar leasing, which involves maintaining railcars used by customers to transport chemicals and other hazardous materials. Under some environmental laws in the U.S. and certain other countries, the owner of a leased transportation asset may be liable for environmental damage and cleanup or other costs in the event of a spill or discharge of material from such asset without regard to the owner's fault. While our standard forms of lease agreements require the lessee to indemnify us against environmental claims and to carry liability insurance coverage, such indemnities and

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

insurance may not fully protect us against claims for environmental damage. Additionally, some of our real estate holdings, including previously owned properties, are or have been used for industrial or transportation-related purposes or leased to commercial or industrial companies whose activities might have resulted in discharges on the property. As a result, we are subject to environmental cleanup and enforcement actions. In particular, the federal Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), also known as the Superfund law, as well as similar state laws, impose joint and several liability for cleanup and enforcement costs on current and former owners and operators of a site without regard to fault or the legality of the original conduct. If there are other potentially responsible parties ("PRPs"), we generally contribute to the cleanup of these sites through cost-sharing agreements with terms that vary from site to site. Costs are typically allocated based on the relative volumetric contribution of material, the period of time the site was owned or operated, and/or the portion of the site owned or operated by each PRP.

At the time a potential environmental issue is identified, initial accruals for environmental liability are established when such liability is determined to be probable and a reasonable estimate of the associated costs can be made. Costs are estimated based on the type and level of investigation and/or remediation activities that our internal environmental staff (and where appropriate, independent consultants) have advised to be necessary to comply with applicable laws and regulations. Activities include surveys and environmental studies of potentially contaminated sites as well as costs for remediation and restoration of sites determined to be contaminated. In addition, we have provided indemnities for potential environmental liabilities to buyers of divested companies. In these instances, accruals are based on the scope and duration of the respective indemnities together with the extent of known contamination. Estimates are periodically reviewed and adjusted as required to reflect additional information about facility or site characteristics or changes in regulatory requirements. We conduct a quarterly environmental contingency analysis, which considers a combination of factors including independent consulting reports, site visits, legal reviews, analysis of the likelihood of participation in and the ability of other PRPs to pay for cleanup, and historical trend analyses.

We are involved in administrative and judicial proceedings and other voluntary and mandatory cleanup efforts at 13 sites, including Superfund sites, for which we are contributing to the cost of performing the study or cleanup, or both, of alleged environmental contamination. As of December 31, 2022, we have recorded accruals of $4.7 million for remediation and restoration costs that we believe to be probable and for which the amount of loss can be reasonably estimated. These amounts are included in other liabilities on our balance sheet. Our environmental liabilities are not discounted.

We did not materially change our methodology for identifying and calculating environmental liabilities in the last three years. Currently, no known trends, demands, commitments, events or uncertainties exist that are reasonably likely to occur and materially affect the methodology or assumptions described above.

The recorded accruals represent our best estimate of all costs for remediation and restoration of affected sites, without reduction for anticipated recoveries from third parties, and include both asserted and unasserted claims. However, we are unable to provide a reasonable estimate of the maximum potential loss associated with these sites because cleanup costs cannot be predicted with certainty. Various factors beyond our control can impact the amount of loss GATX will ultimately incur with respect to these sites, including the extent of corrective actions that may be required; evolving environmental laws and regulations; advances in environmental technology, the extent of other parties' participation in cleanup efforts; developments in periodic environmental analyses related to sites determined to be contaminated, and developments in environmental surveys and studies of potentially contaminated sites. As a result, future charges associated with these sites could have a significant effect on results of operations in a particular quarter or year if the costs materially exceed the accrued amount as individual site studies and remediation and restoration efforts proceed. However, management believes it is unlikely that the ultimate cost to GATX for any of these sites, either individually or in the aggregate, will have a material adverse effect on our consolidated financial position or liquidity.

**NOTE 24. 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 three primary business segments: Rail North America, Rail International, and Portfolio Management. Financial results for Trifleet Leasing are reported in the Other segment. Historically, we also reported financial results for ASC as a fourth segment.

In 2021, we began investing directly in aircraft spare engines through our entity, GATX Engine Leasing Ltd. ("GEL"). In 2021, GEL acquired 14 aircraft spare engines for approximately $352 million, including four engines for $120 million from the RRPF affiliates. In 2022, GEL acquired five aircraft spare engines for approximately $150 million. Financial results for this business are reported in the Portfolio Management segment.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

On December 29, 2020, we acquired Trifleet Leasing Holding B.V. ("Trifleet), one of the largest tank container lessors in the world. Financial results for this business are reported in the Other segment. See "Note 4. Business Combinations" for additional information.

On May 14, 2020, we completed the sale of our ASC business. As a result, ASC is now reported as discontinued operations, and financial data for the ASC segment has been segregated and presented as discontinued operations for all periods presented. See "Note 25. Discontinued Operations" for additional information.

Rail North America is composed of our operations in the United States, Canada, and Mexico. 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 operations in Europe ("GATX Rail Europe" or "GRE"), India ("Rail India"), and Russia ("Rail Russia"). GRE primarily leases railcars to customers throughout Europe pursuant to full-service leases under which it maintains the railcars and provides value-added services according to customer requirements. In 2022, after a thorough strategic review, we made the decision to exit Rail Russia. As a result, the net assets of Rail Russia have been classified as held for sale as of December 31, 2022. See "Note 10. Asset Impairments and Assets Held for Sale" for further information. On January 31, 2023, we completed the sale of Rail Russia. See "Note 26. Subsequent Events".

Portfolio Management is composed primarily of our ownership in the RRPF affiliates, a group of joint ventures with Rolls-Royce plc that lease aircraft spare engines, GEL, our direct ownership of aircraft spare engines that we lease, as well as liquefied gas carrying vessels (the "Specialized Gas Vessels"). In 2022, we made the decision to sell the Specialized Gas Vessels. As a result of this decision, the Specialized Gas Vessels have been classified as held for sale. GATX sold two of the vessels in 2022. See "Note 10. Asset Impairments and Assets Held for Sale" for further information.

Other includes Trifleet Leasing operations, as well as selling, general and administrative expenses, income taxes, and certain other amounts not allocated to the segments.

Segment profit is an internal performance measure used by the Chief Executive Officer to assess the profitability of each segment. Segment profit includes all revenues, expenses, pre-tax earnings from affiliates, and net gains on asset dispositions that are directly attributable to each segment. We allocate interest expense to the segments based on what we believe to be the appropriate risk-adjusted borrowing costs for each segment. Segment profit excludes selling, general and administrative expenses, income taxes, and certain other amounts not allocated to the segments.

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

The following tables show certain segment data for the years ended December 31, 2022, 2021, and 2020 (in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Rail North America** | **Rail International** | **Portfolio Management** | **Other** | **GATX Consolidated** |
| &nbsp;&nbsp;**2022 Profitability** | | | | | |
| &nbsp;&nbsp;**Revenues** | | | | | |
| &nbsp;&nbsp;Lease revenue | $826.0 | $266.2 | $33.0 | $29.4 | $1154.6 |
| &nbsp;&nbsp;Marine operating revenue |  |  | 18.9 |  | 18.9 |
| &nbsp;&nbsp;Other revenue | 82.0 | 9.1 | 1.7 | 6.7 | 99.5 |
| &nbsp;&nbsp;&nbsp;**Total Revenues** | 908.0 | 275.3 | 53.6 | 36.1 | 1273.0 |
| &nbsp;&nbsp;**Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;Maintenance expense | 238.5 | 51.4 |  | 2.8 | 292.7 |
| &nbsp;&nbsp;Marine operating expense |  |  | 14.1 |  | 14.1 |
| &nbsp;&nbsp;Depreciation expense | 258.6 | 69.1 | 17.8 | 12.0 | 357.5 |
| &nbsp;&nbsp;Operating lease expense | 36.1 |  |  |  | 36.1 |
| &nbsp;&nbsp;Other operating expense | 24.5 | 8.3 | 2.3 | 2.3 | 37.4 |
| &nbsp;&nbsp;&nbsp;**Total Expenses** | 557.7 | 128.8 | 34.2 | 17.1 | 737.8 |
| &nbsp;&nbsp;**Other Income (Expense)** |  |  |  |  |  |
| &nbsp;&nbsp;Net gain (loss) on asset dispositions | 119.7 | (11.2) | (31.1) | 0.5 | 77.9 |
| &nbsp;&nbsp;Interest expense, net | (144.6) | (45.6) | (19.0) | (4.8) | (214.0) |
| &nbsp;&nbsp;Other expense | (4.6) | (3.8) |  | (18.6) | (27.0) |
| &nbsp;&nbsp;Share of affiliates' pre-tax earnings | 0.5 |  | 45.4 |  | 45.9 |
| &nbsp;&nbsp;&nbsp;**Segment profit (loss)** | $321.3 | $85.9 | $14.7 | $(3.9) | 418.0 |
| &nbsp;&nbsp;Less: |  |  |  |  |  |
| &nbsp;&nbsp;Selling, general and administrative expense | &nbsp;&nbsp;Selling, general and administrative expense | &nbsp;&nbsp;Selling, general and administrative expense | &nbsp;&nbsp;Selling, general and administrative expense | &nbsp;&nbsp;Selling, general and administrative expense | 195.0 |
| &nbsp;&nbsp;Income taxes (includes $12.3 related to affiliates' earnings) | &nbsp;&nbsp;Income taxes (includes $12.3 related to affiliates' earnings) | &nbsp;&nbsp;Income taxes (includes $12.3 related to affiliates' earnings) | &nbsp;&nbsp;Income taxes (includes $12.3 related to affiliates' earnings) | &nbsp;&nbsp;Income taxes (includes $12.3 related to affiliates' earnings) | 67.1 |
| &nbsp;&nbsp;&nbsp;**Net income from continuing operations** | &nbsp;&nbsp;&nbsp;**Net income from continuing operations** | &nbsp;&nbsp;&nbsp;**Net income from continuing operations** | &nbsp;&nbsp;&nbsp;**Net income from continuing operations** | &nbsp;&nbsp;&nbsp;**Net income from continuing operations** | $155.9 |
| &nbsp;&nbsp;&nbsp;**Net income from discontinued operations, net of taxes** | &nbsp;&nbsp;&nbsp;**Net income from discontinued operations, net of taxes** | &nbsp;&nbsp;&nbsp;**Net income from discontinued operations, net of taxes** | &nbsp;&nbsp;&nbsp;**Net income from discontinued operations, net of taxes** | &nbsp;&nbsp;&nbsp;**Net income from discontinued operations, net of taxes** |  |
| &nbsp;&nbsp;&nbsp;**Net income** | &nbsp;&nbsp;&nbsp;**Net income** | &nbsp;&nbsp;&nbsp;**Net income** | &nbsp;&nbsp;&nbsp;**Net income** | &nbsp;&nbsp;&nbsp;**Net income** | $155.9 |
| **Net Gain (Loss) on Asset Dispositions** |  |  |  |  |  |
| &nbsp;&nbsp;<u>Asset Remarketing Income:</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains on dispositions of owned assets | $102.2 | $1.6 | $— | $0.3 | $104.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residual sharing income | 2.4 |  | 3.2 |  | 5.6 |
| &nbsp;&nbsp;Non-remarketing net gains (1) | 15.1 | 1.8 |  | 0.2 | 17.1 |
| &nbsp;&nbsp;Asset impairments |  | (14.6) | (34.3) |  | (48.9) |
|  | $119.7 | $(11.2) | $(31.1) | $0.5 | $77.9 |
| **Capital Expenditures** |  |  |  |  |  |
| &nbsp;&nbsp;Portfolio investments and capital additions | $815.9 | $243.9 | $149.7 | $46.3 | $1255.8 |
| **Selected Balance Sheet Data** |  |  |  |  |  |
| &nbsp;&nbsp;Investments in affiliated companies | $0.8 | $— | $574.3 | $— | $575.1 |
| &nbsp;&nbsp;Identifiable assets from continuing operations | $6445.7 | $1774.4 | $1106.6 | $745.3 | $10072.0 |

---

__________

(1) Includes net gains (losses) from scrapping of railcars.

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Rail North America** | **Rail International** | **Portfolio Management** | **Other** | **GATX Consolidated** |
| &nbsp;&nbsp;**2021 Profitability** | | | | | |
| &nbsp;&nbsp;**Revenues** | | | | | |
| &nbsp;&nbsp;Lease revenue | $814.5 | $272.9 | $28.1 | $25.0 | $1140.5 |
| &nbsp;&nbsp;Marine operating revenue |  |  | 19.1 |  | 19.1 |
| &nbsp;&nbsp;Other revenue | 77.2 | 11.4 | 0.5 | 8.7 | 97.8 |
| &nbsp;&nbsp;&nbsp;**Total Revenues** | 891.7 | 284.3 | 47.7 | 33.7 | 1257.4 |
| &nbsp;&nbsp;**Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;Maintenance expense | 235.4 | 57.6 |  | 4.1 | 297.1 |
| &nbsp;&nbsp;Marine operating expense |  |  | 17.5 |  | 17.5 |
| &nbsp;&nbsp;Depreciation expense | 261.1 | 73.6 | 17.6 | 12.1 | 364.4 |
| &nbsp;&nbsp;Operating lease expense | 39.2 |  |  |  | 39.2 |
| &nbsp;&nbsp;Other operating expense | 30.3 | 9.0 | 1.7 | 3.0 | 44.0 |
| &nbsp;&nbsp;&nbsp;**Total Expenses** | 566.0 | 140.2 | 36.8 | 19.2 | 762.2 |
| &nbsp;&nbsp;**Other Income (Expense)** |  |  |  |  |  |
| &nbsp;&nbsp;Net gain on asset dispositions | 94.3 | 2.7 | 8.0 | 0.9 | 105.9 |
| &nbsp;&nbsp;Interest expense, net | (136.2) | (45.2) | (16.6) | (6.0) | (204.0) |
| &nbsp;&nbsp;Other income (expense) | 1.6 | 3.4 | 2.0 | (10.7) | (3.7) |
| &nbsp;&nbsp;Share of affiliates' pre-tax earnings |  |  | 56.5 |  | 56.5 |
| &nbsp;&nbsp;&nbsp;**Segment profit (loss)** | $285.4 | $105.0 | $60.8 | $(1.3) | 449.9 |
| &nbsp;&nbsp;Less: |  |  |  |  |  |
| &nbsp;&nbsp;Selling, general and administrative expense | &nbsp;&nbsp;Selling, general and administrative expense | &nbsp;&nbsp;Selling, general and administrative expense | &nbsp;&nbsp;Selling, general and administrative expense | &nbsp;&nbsp;Selling, general and administrative expense | 198.3 |
| &nbsp;&nbsp;Income taxes (includes $55.3 related to affiliates' earnings) | &nbsp;&nbsp;Income taxes (includes $55.3 related to affiliates' earnings) | &nbsp;&nbsp;Income taxes (includes $55.3 related to affiliates' earnings) | &nbsp;&nbsp;Income taxes (includes $55.3 related to affiliates' earnings) | &nbsp;&nbsp;Income taxes (includes $55.3 related to affiliates' earnings) | 108.5 |
| &nbsp;&nbsp;&nbsp;**Net income from continuing operations** | &nbsp;&nbsp;&nbsp;**Net income from continuing operations** | &nbsp;&nbsp;&nbsp;**Net income from continuing operations** | &nbsp;&nbsp;&nbsp;**Net income from continuing operations** | &nbsp;&nbsp;&nbsp;**Net income from continuing operations** | $143.1 |
| &nbsp;&nbsp;&nbsp;**Net income from discontinued operations, net of taxes** | &nbsp;&nbsp;&nbsp;**Net income from discontinued operations, net of taxes** | &nbsp;&nbsp;&nbsp;**Net income from discontinued operations, net of taxes** | &nbsp;&nbsp;&nbsp;**Net income from discontinued operations, net of taxes** | &nbsp;&nbsp;&nbsp;**Net income from discontinued operations, net of taxes** |  |
| &nbsp;&nbsp;&nbsp;**Net income** | &nbsp;&nbsp;&nbsp;**Net income** | &nbsp;&nbsp;&nbsp;**Net income** | &nbsp;&nbsp;&nbsp;**Net income** | &nbsp;&nbsp;&nbsp;**Net income** | $143.1 |
| **Net Gain on Asset Dispositions** |  |  |  |  |  |
| &nbsp;&nbsp;<u>Asset Remarketing Income:</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains on dispositions of owned assets | $80.7 | $1.2 | $— | $0.5 | $82.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residual sharing income | 0.9 |  | 8.0 |  | 8.9 |
| &nbsp;&nbsp;Non-remarketing net gains (1) | 15.1 | 1.5 |  | 0.4 | 17.0 |
| &nbsp;&nbsp;Asset impairments | (2.4) |  |  |  | (2.4) |
|  | $94.3 | $2.7 | $8.0 | $0.9 | $105.9 |
| **Capital Expenditures** |  |  |  |  |  |
| &nbsp;&nbsp;Portfolio investments and capital additions | $574.4 | $173.3 | $353.0 | $31.2 | $1131.9 |
| **Selected Balance Sheet Data** |  |  |  |  |  |
| &nbsp;&nbsp;Investments in affiliated companies | $0.3 | $— | $588.1 | $— | $588.4 |
| &nbsp;&nbsp;Identifiable assets from continuing operations | $6141.7 | $1729.9 | $1048.7 | $621.4 | $9541.7 |

---

__________

(1) Includes net gains (losses) from scrapping of railcars.

------

**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Rail North America** | **Rail International** | **Portfolio Management** | **Other** | **GATX Consolidated** |
| &nbsp;&nbsp;**2020 Profitability** | | | | | |
| &nbsp;&nbsp;**Revenues** | | | | | |
| &nbsp;&nbsp;Lease revenue | $838.3 | $248.4 | $0.8 | $— | $1087.5 |
| &nbsp;&nbsp;Marine operating revenue |  |  | 15.6 |  | 15.6 |
| &nbsp;&nbsp;Other revenue | 95.8 | 9.7 | 0.6 |  | 106.1 |
| &nbsp;&nbsp;&nbsp;**Total Revenues** | 934.1 | 258.1 | 17.0 |  | 1209.2 |
| &nbsp;&nbsp;**Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;Maintenance expense | 264.7 | 50.8 |  |  | 315.5 |
| &nbsp;&nbsp;Marine operating expense |  |  | 19.7 |  | 19.7 |
| &nbsp;&nbsp;Depreciation expense | 258.6 | 66.6 | 5.3 |  | 330.5 |
| &nbsp;&nbsp;Operating lease expense | 49.3 |  |  |  | 49.3 |
| &nbsp;&nbsp;Other operating expense | 27.3 | 7.5 | 0.5 |  | 35.3 |
| &nbsp;&nbsp;&nbsp;**Total Expenses** | 599.9 | 124.9 | 25.5 |  | 750.3 |
| &nbsp;&nbsp;**Other Income (Expense)** |  |  |  |  |  |
| &nbsp;&nbsp;Net gain on asset dispositions | 38.3 | 1.2 | 2.2 |  | 41.7 |
| &nbsp;&nbsp;Interest (expense) income, net | (139.9) | (45.9) | (12.2) | 7.7 | (190.3) |
| &nbsp;&nbsp;Other expense | (4.9) | (5.0) |  | (3.1) | (13.0) |
| &nbsp;&nbsp;Share of affiliates' pre-tax (loss) earnings | (0.1) |  | 95.9 |  | 95.8 |
| &nbsp;&nbsp;&nbsp;**Segment profit** | $227.6 | $83.5 | $77.4 | $4.6 | 393.1 |
| &nbsp;&nbsp;Less: |  |  |  |  |  |
| &nbsp;&nbsp;Selling, general and administrative expense | &nbsp;&nbsp;Selling, general and administrative expense | &nbsp;&nbsp;Selling, general and administrative expense | &nbsp;&nbsp;Selling, general and administrative expense | &nbsp;&nbsp;Selling, general and administrative expense | 172.0 |
| &nbsp;&nbsp;Income taxes (includes $33.6 related to affiliates' earnings) | &nbsp;&nbsp;Income taxes (includes $33.6 related to affiliates' earnings) | &nbsp;&nbsp;Income taxes (includes $33.6 related to affiliates' earnings) | &nbsp;&nbsp;Income taxes (includes $33.6 related to affiliates' earnings) | &nbsp;&nbsp;Income taxes (includes $33.6 related to affiliates' earnings) | 70.9 |
| &nbsp;&nbsp;&nbsp;**Net income from continuing operations** | &nbsp;&nbsp;&nbsp;**Net income from continuing operations** | &nbsp;&nbsp;&nbsp;**Net income from continuing operations** | &nbsp;&nbsp;&nbsp;**Net income from continuing operations** | &nbsp;&nbsp;&nbsp;**Net income from continuing operations** | $150.2 |
| &nbsp;&nbsp;&nbsp;**Net income from discontinued operations, net of taxes** | &nbsp;&nbsp;&nbsp;**Net income from discontinued operations, net of taxes** | &nbsp;&nbsp;&nbsp;**Net income from discontinued operations, net of taxes** | &nbsp;&nbsp;&nbsp;**Net income from discontinued operations, net of taxes** | &nbsp;&nbsp;&nbsp;**Net income from discontinued operations, net of taxes** | 1.1 |
| &nbsp;&nbsp;&nbsp;**Net income** | &nbsp;&nbsp;&nbsp;**Net income** | &nbsp;&nbsp;&nbsp;**Net income** | &nbsp;&nbsp;&nbsp;**Net income** | &nbsp;&nbsp;&nbsp;**Net income** | $151.3 |
| **Net Gain on Asset Dispositions** |  |  |  |  |  |
| &nbsp;&nbsp;<u>Asset Remarketing Income:</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains on dispositions of owned assets | $38.8 | $0.5 | $0.1 | $— | $39.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residual sharing income | 0.4 |  | 2.1 |  | 2.5 |
| &nbsp;&nbsp;Non-remarketing net (losses) gains (1) | (0.6) | 0.7 |  |  | 0.1 |
| &nbsp;&nbsp;Asset impairments | (0.3) |  |  |  | (0.3) |
|  | $38.3 | $1.2 | $2.2 | $— | $41.7 |
| **Capital Expenditures** |  |  |  |  |  |
| &nbsp;&nbsp;Portfolio investments and capital additions | $642.0 | $216.0 | $0.5 | $205.5 | $1064.0 |
| **Selected Balance Sheet Data** |  |  |  |  |  |
| &nbsp;&nbsp;Investments in affiliated companies | $— | $— | $584.7 | $— | $584.7 |
| &nbsp;&nbsp;Identifiable assets from continuing operations | $5944.4 | $1745.8 | $706.1 | $541.3 | $8937.6 |

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__________

(1) Includes net gains (losses) from scrapping of railcars.

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**GATX CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**NOTE 25. Discontinued Operations** 

On May 14, 2020, we completed the sale of our ASC business. The proceeds of $258.3 million in cash included $1.1 million held in escrow, set aside to satisfy potential indemnification claims for one year after the sale date. The final proceeds of $1.1 million were received in May 2021.

Accordingly, the results of operations from our ASC business and gain on sale of ASC are reported in the accompanying consolidated statements of operations as "discontinued operations, net of taxes" for the years ended December 31, 2022, 2021, and 2020. As a result of the completion of the sale in May 2020, there were no operating results in 2022 or 2021. There were no related assets and liabilities classified as assets and liabilities of discontinued operations as of December 31, 2022 and 2021 in the accompanying balance sheets. We recognized a net gain of $3.6 million, net of taxes, during the second quarter of 2020 in connection with this sale. In the third quarter of 2020, we recognized a net loss of $0.3 million, net of taxes. The net loss on sale recognized in the third quarter was attributable to final post-closing adjustments and expenses related to the sale.

Results of discontinued operations reflect directly attributable revenues, operating and ownership expenses, and income taxes. Results also reflect intercompany allocations for interest. Interest expense was zero for 2022 and 2021, and $2.0 million for 2020. Interest was allocated consistent with GATX's risk-adjusted approach for continuing operations.

The following table shows the financial results of our discontinued operations for the years ended December 31 (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| **Revenues** | $— | $— | $27.2 |
| **Expenses** |  |  |  |
| Operating expense |  |  | 22.5 |
| Depreciation expense |  |  | 1.7 |
| Selling, general and administrative expense |  |  | 2.8 |
| **Total Expenses** |  |  | 27.0 |
| &nbsp;&nbsp;Other expense |  |  | (3.0) |
| **Loss from Discontinued Operations Before Taxes** |  |  | (2.8) |
| Income tax benefit |  |  | 0.6 |
| **Net Loss from Discontinued Operations, Net of Taxes** | $— | $— | $(2.2) |
| **Gain on Sale of Discontinued Operations, Net of Taxes** |  |  | 3.3 |
| **Total Discontinued Operations, Net of Taxes** | $— | $— | $1.1 |

---

The following table shows cash flow information for our discontinued operations for the years ending December 31 (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| &nbsp;&nbsp;Net Cash Used in Operating Activities | $— | $— | $(8.5) |
| &nbsp;&nbsp;Net Cash Provided by Investing Activities (1) |  | 1.1 | 240.9 |
| &nbsp;&nbsp;Net Cash Provided by Financing Activities |  |  | 21.8 |
| &nbsp;&nbsp;**Cash Provided by Discontinued Operations, Net** | $— | $1.1 | $254.2 |

---

________

(1) Net cash provided by investing activities included $1.1 million in 2021 for the final proceeds from the sale of ASC that had been held in escrow funds and $257.2 million of proceeds from the sale of ASC in 2020.

**NOTE 26. Subsequent Events** 

We completed the sale of Rail Russia to a third party on January 31, 2023.

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**Item 9. *Changes in and Disagreements with Accountants on Accounting and Financial Disclosure***

None.

**Item 9A. *Controls and Procedures***

**Management's Report Regarding the Effectiveness of Disclosure Controls and Procedures**

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has conducted an evaluation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the "Exchange Act")). Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this annual report, our disclosure controls and procedures were effective.

**Management's Report Regarding the Effectiveness of Internal Control and Procedures**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act for us. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that:

&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate as a result of changes in conditions, or that the degree of compliance with the applicable policies and procedures may deteriorate.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has conducted an evaluation of our internal control over financial reporting as of the end of the period covered by this annual report based on the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Such evaluation included reviewing the documentation of our internal controls, evaluating the design effectiveness of the internal controls and testing their operating effectiveness.

Based on such evaluation, our management has concluded that as of the end of the period covered by this annual report, our internal control over financial reporting was effective. Management reviewed the results of its assessment with the Audit Committee of our Board of Directors.

Ernst & Young LLP, the independent registered public accounting firm that audited the financial statements included in this annual report, has issued a report on our internal control over financial reporting. That report follows.

------

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and the Board of Directors of GATX Corporation

**Opinion on Internal Control over Financial Reporting**

We have audited GATX Corporation and subsidiaries' internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, GATX Corporation and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2022 and 2021, the related consolidated statements of comprehensive income, changes in shareholders' equity and cash flows for each of the three years in the period ended December 31, 2022, and the related notes and our report dated February 16, 2023 expressed an unqualified opinion thereon.

**Basis for Opinion**

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report Regarding the Effectiveness of Internal Control and Procedures. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

**Definition and Limitations of Internal Control Over Financial Reporting** 

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Chicago, Illinois

February 16, 2023

------

**Changes in Internal Control Over Financial Reporting**

No changes in our internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) occurred during the fiscal quarter ended December 31, 2022, that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

**Item 9B. *Other Information***

On February 15, 2023, the Compensation Committee of the Board of Directors of the Company adopted the GATX Corporation U.S. Executive Severance Plan (the "Plan") for eligible executives located in the United States, including our executive officers. Pursuant to the Plan, participants will be eligible to receive the following severance benefits upon a qualifying termination, including in connection with a change of control ("COC") of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In the event an executive's employment is terminated by the Company other than for "cause" (as defined in the Plan) not in connection with a COC, he or she will be entitled to the following: (1) a lump sum payment equal to a multiple of the executive's base salary depending on his or her position (24 months for the Chief Executive Officer, 18 months for Executive Vice Presidents and 12 months for Senior Vice Presidents) (such period of time, the "severance period"); (2) a lump sum payment equal to a multiple of the executive's target bonus for the year in which such termination occurs (2x for the Chief Executive Officer, 1.5x for Executive Vice Presidents and 1x for Senior Vice Presidents); (3) a lump sum payment equal to executive's annual bonus for the year in which the termination occurs, based on the Company's actual performance, and based on 100% achievement of any individual performance goals, pro-rated for the period of time through the termination date; (4) a lump sum payment equal to the executive's prior year bonus, if any, if unpaid at the time of termination; (5) continued COBRA premiums for the duration of the severance period; (6) Company-paid outplacement services up to $25,000 for a period of 12 months following the termination date; (7) continued use of the Company's Employee Assistance Program during the 90-day period following the termination date; and (8) tuition reimbursement for classes in which the executive was enrolled in as of the termination date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In the event the executive is terminated by the Company other than for "cause" or if he or she resigns for "good reason" (as defined in the Plan), in each case, during the period commencing on the date of a COC and ending 24 months following such COC, he or she will be entitled to the following: (1) a lump sum payment equal to a multiple of the executive's base salary depending on his or her position (36 months for the Chief Executive Officer, 24 months for Executive Vice Presidents and 18 months for Senior Vice Presidents) (such period of time, the "COC severance period"); (2) a lump sum payment equal to a multiple of the executive's target bonus for the year in which such termination occurs (3x for the Chief Executive Officer, 2x for Executive Vice Presidents and 1.5x for Senior Vice Presidents); (3) a lump sum payment equal to executive's target bonus for the year in which the termination occurs, pro-rated for the period of time through the termination date; (4) a lump sum payment equal to the executive's prior year bonus, if any, if unpaid at the time of termination; (5) continued COBRA premiums for the duration of the COC severance period; (6) Company-paid outplacement services up to $25,000 for a period of 12 months following the termination date; (7) continued use of the Company's Employee Assistance Program during the 90-day period following the termination date; and (8) tuition reimbursement for classes in which the executive was enrolled in as of the termination date.

The executive's receipt of any severance benefits is subject to the executive signing a general release of claims in favor of the Company.

Pursuant to the terms of the Plan, executives will not be eligible for benefits under the plan to the extent they are a party to an existing COC agreement and would receive benefits under such agreement as a result of any termination. Additionally, for the avoidance of doubt, if an executive's COC agreement provides for more favorable benefits in the event an excise tax is imposed on "excess parachute payments" by the Internal Revenue Code than the benefits provided in the Plan, the more favorable provision contained in the COC agreement shall apply to such executive.

------

Prior to the adoption of the Plan, the executives eligible for benefits under the Plan participated in the same severance benefit plan that is available generally on a nondiscriminatory basis to all salaried employees located in the United States. Following the effectiveness of the Plan, the executives eligible for benefits under the Plan are no longer eligible to receive benefits under that other plan.

The foregoing description of the Plan is qualified in its entirety by reference to the full text of the Plan, which is filed as Exhibit 10.2 and is incorporated by reference herein.

**Item 9C. *Disclosure Regarding Foreign Jurisdictions that Prevent Inspections***

N/A.

**PART III** 

**Item 10. *Directors, Executive Officers and Corporate Governance***

Information required by this item regarding directors, our Code of Business Conduct and Ethics, Code of Ethics for Senior Company Officers, Audit Committee Financial Experts, compliance with Section 16(a) of the Exchange Act, and corporate governance is contained in sections entitled "Director Criteria and Nomination Process", "Nominees for Election to the Board of Directors", "Board of Directors", "Board Independence", "Board Leadership Structure", "Board Committees", "Director and Officer Indemnification and Insurance Arrangements", "Communication with the Board", and "Audit Committee Report" in our definitive Proxy Statement to be filed with the SEC on or about March 17, 2023, which sections are incorporated herein by reference.

Information regarding executive officers is included after Item 1 in Part I of this Form 10-K.

**Item 11. *Executive Compensation***

Information required by this item regarding compensation of our directors and executive officers is contained in sections entitled "Director Compensation", "Compensation Discussion and Analysis", "Compensation Committee Report", and "Executive Compensation Tables", in our definitive Proxy Statement to be filed with the SEC on or about March 17, 2023, which sections are incorporated herein by reference.

**Item 12. *Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters***

Information required by this item regarding security ownership of certain beneficial owners and management is contained in sections entitled "Security Ownership of Directors and Executive Officers" and "Principal Shareholders" in our definitive Proxy Statement to be filed with the SEC on or about March 17, 2023, which sections are incorporated herein by reference.

**Item 13. *Certain Relationships and Related Transactions, and Director Independence***

Information required by this item regarding transactions with related persons and director independence is contained in the sections entitled "Related Party Transactions" and "Board Independence" in our definitive Proxy Statement to be filed with the SEC on or about March 17, 2023, which sections are incorporated herein by reference.

**Item 14. *Principal Accountant Fees and Services***

Information required by this item regarding fees paid to Ernst & Young is contained in sections entitled "Pre-Approval Policy" and "Audit and Other Related Fees" in our definitive Proxy Statement to be filed with the SEC on or about March 17, 2023, which sections are incorporated herein by reference.

------

**PART IV**

**Item 15. *Exhibits, Financial Statement Schedules***

(a) 1. Financial Statements

---

| | |
|:---|:---|
| | **Page** |
| Documents Filed as Part of this Report: |  |
| &nbsp;&nbsp;[Report of Independent Registered Public Accounting Firm on Financial Statements](#i8abe6170fcd04ac7a9d0af157d366a7b_136) | [54](#i8abe6170fcd04ac7a9d0af157d366a7b_136) |
| &nbsp;&nbsp;[Consolidated Balance Sheets — December 31, 2022 and 2021](#i8abe6170fcd04ac7a9d0af157d366a7b_139) | [56](#i8abe6170fcd04ac7a9d0af157d366a7b_139) |
| &nbsp;&nbsp;[Consolidated Statements of Comprehensive Income — Years Ended December 31, 2022, 2021, and 2020](#i8abe6170fcd04ac7a9d0af157d366a7b_145) | [57](#i8abe6170fcd04ac7a9d0af157d366a7b_145) |
| &nbsp;&nbsp;[Consolidated Statements of Cash Flows — Years Ended December 31, 2022, 2021, and 2020](#i8abe6170fcd04ac7a9d0af157d366a7b_148) | [58](#i8abe6170fcd04ac7a9d0af157d366a7b_148) |
| &nbsp;&nbsp;[Consolidated Statements of Changes in Shareholders' Equity — Years Ended December 31, 2022, 2021, and 2020](#i8abe6170fcd04ac7a9d0af157d366a7b_151) | [59](#i8abe6170fcd04ac7a9d0af157d366a7b_151) |
| &nbsp;&nbsp;[Notes to](#i8abe6170fcd04ac7a9d0af157d366a7b_157)[Consolidated Financial Statements](#i8abe6170fcd04ac7a9d0af157d366a7b_157) | [60](#i8abe6170fcd04ac7a9d0af157d366a7b_157) |
| &nbsp;&nbsp;[Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting](#i8abe6170fcd04ac7a9d0af157d366a7b_256) | [105](#i8abe6170fcd04ac7a9d0af157d366a7b_256) |

---

&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statement Schedules:

Schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable, and, therefore, have been omitted.

&nbsp;&nbsp;&nbsp;&nbsp;3. Exhibits.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit**<br>**<u>Number</u>** | <br>**<u>Exhibit Description</u>** |
| ***Filed with this Report:*** | ***Filed with this Report:*** |
| 10.1 | [Summary of GATX Corporation Non-Employee Directo](exhibit101forworkiva.htm)[rs' Compensation.](exhibit101forworkiva.htm)[\*](exhibit101forworkiva.htm) |
| 10.2 | [G](exhibit102-xgatxxusexecu.htm)[ATX Cor](exhibit102-xgatxxusexecu.htm)[por](exhibit102-xgatxxusexecu.htm)[ation U.S. Executive Se](exhibit102-xgatxxusexecu.htm)[verance Plan, effective as of Febru](exhibit102-xgatxxusexecu.htm)[ary 15,](exhibit102-xgatxxusexecu.htm)[2023.\*](exhibit102-xgatxxusexecu.htm) |
| 21 | [Subsidiaries of the Registrant.](gatx-20221231xexhibit21.htm) |
| 23 | [Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm.](gatx-20221231xexhibit23.htm) |
| 31.1 | [Certification Pursuant to Exchange Act Rule 13a-14(a) and Rule 15d-14(a) (CEO Certification).](gatx-20221231xexhibit311.htm) |
| 31.2 | [Certification Pursuant to Exchange Act Rule 13a-14(a) and Rule 15d-14(a) (CFO Certification).](gatx-20221231xexhibit312.htm) |
| 32 | [Certification Pursuant to 18 U.S.C. Section 1350 (CEO and CFO Certification).](gatx-20221231xexhibit32.htm) |
| 101 | The following materials from GATX Corporation's Annual Report on Form 10-K for the year ended December 31, 2022, are formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets at December 31, 2022 and December 31, 2021, (ii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2022, 2021, and 2020, (iii) Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021, and 2020, (iv) Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2022, 2021, and 2020, and (v) Notes to the Consolidated Financial Statements. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
| ***Incorporated by Reference:*** | ***Incorporated by Reference:*** |
| 3.1 | [Restated Certificate of Incorporation of GATX Corporation is incorporated herein by reference to Exhibit 3.2 to GATX's Form 8-K dated October 31, 2013, file number 1-2328.](http://www.sec.gov/Archives/edgar/data/40211/000004021113000038/gmt-20131031xrestatedcerti.htm) |
| 3.2 | [Amended and Restated By-Laws of GATX Corporation, as amended and restated on](http://www.sec.gov/Archives/edgar/data/40211/000119312522274540/d410706dex31.htm)[October 28, 2022](http://www.sec.gov/Archives/edgar/data/40211/000119312522274540/d410706dex31.htm)[, are incorporated herein by reference to Exhibit 3.1 of GATX's Form 8-K dated](http://www.sec.gov/Archives/edgar/data/40211/000119312522274540/d410706dex31.htm)[November 1, 2022](http://www.sec.gov/Archives/edgar/data/40211/000119312522274540/d410706dex31.htm)[, file number 1-2328.](http://www.sec.gov/Archives/edgar/data/40211/000119312522274540/d410706dex31.htm) |
| 4.1 | [Indenture dated as of November 1, 2003 between GATX Financial Corporation and JP Morgan Chase Bank is incorporated herein by reference to Exhibit 4Q to GATX Financial Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2003, file number 1-8319.](http://www.sec.gov/Archives/edgar/data/357019/000095013704001887/c83788exv4wq.txt) |
| 4.2 | [Indenture dated as of February 6, 2008, between GATX Corporation and U.S. Bank National Association, as Trustee, is incorporated herein by reference to Exhibit 4.12 to GATX's Annual Report on Form 10-K for the fiscal year ended December 31, 2007, file number 1-2328.](http://www.sec.gov/Archives/edgar/data/40211/000095013708003102/c22861exv4w12.txt) |
| 4.3 | [Description of the Registrant's Securities is incorporated herein by reference to Exhibit 4.3 to GATX's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, file number 1-2328](http://www.sec.gov/Archives/edgar/data/40211/000004021120000017/gatx-20191231xexhibit43.htm). |

---

------

---

| | | |
|:---|:---|:---|
| 10.1 | [Five Year Credit Agreement dated as of May 21, 2021, among GATX Corporation, as borrower, Citibank, N.A. and BofA Securities, Inc., as joint lead arrangers and joint book managers, Bank of America, N.A., as syndication agent, PNC Bank, National Association, U.S. Bank, National Association, Morgan Stanley MUFG Loan Partners, LLC and KeyBank National Association, as co-documentation agents, Citibank, N.A., as administrative agent, and the lenders party thereto is incorporated by reference to Exhibit 10.1 to GATX's Form 8-K dated May 27, 2021, file number 1-2328.](http://www.sec.gov/Archives/edgar/data/40211/000119312521175307/d188582dex101.htm) | [Five Year Credit Agreement dated as of May 21, 2021, among GATX Corporation, as borrower, Citibank, N.A. and BofA Securities, Inc., as joint lead arrangers and joint book managers, Bank of America, N.A., as syndication agent, PNC Bank, National Association, U.S. Bank, National Association, Morgan Stanley MUFG Loan Partners, LLC and KeyBank National Association, as co-documentation agents, Citibank, N.A., as administrative agent, and the lenders party thereto is incorporated by reference to Exhibit 10.1 to GATX's Form 8-K dated May 27, 2021, file number 1-2328.](http://www.sec.gov/Archives/edgar/data/40211/000119312521175307/d188582dex101.htm) |
|  | i. | [Amendment No. 1 to Five Year Credit Agreement dated as of May 21, 2021, among GATX as borrower, Citibank, N.A. and BofA Securities, Inc., as joint lead arrangers and joint book managers, Bank of America, N.A., as syndication agent, PNC Bank, National Association, U.S. Bank, National Association, Morgan Stanley MUFG Loan Partners, LLC and KeyBank National Association, as co-documentation agents, Citibank, N.A., as administrative agent, and the lenders party thereto is incorporated by reference to Exhibit 10.1 to GATX's Form 8-K dated May 26, 2022, file number 1-2328.](http://www.sec.gov/Archives/edgar/data/40211/000119312522161017/d340503dex101.htm) |
| 10.2 | [Supply Agreement by and between GATX Corporation, as Buyer, and Trinity Rail Group, LLC, as Seller, dated November 3, 2014 is incorporated by reference to Exhibit 10.1 to GATX's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2020, file number 1-2328 (Note: Portions of this document have been omitted pursuant to Item 601(b)(2)(ii) of Regulation S-K).](http://www.sec.gov/Archives/edgar/data/40211/000004021120000097/trinityagreement.htm) | [Supply Agreement by and between GATX Corporation, as Buyer, and Trinity Rail Group, LLC, as Seller, dated November 3, 2014 is incorporated by reference to Exhibit 10.1 to GATX's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2020, file number 1-2328 (Note: Portions of this document have been omitted pursuant to Item 601(b)(2)(ii) of Regulation S-K).](http://www.sec.gov/Archives/edgar/data/40211/000004021120000097/trinityagreement.htm) |
|  | i. | [First Amendment to Supply Agreement by and between GATX Corporation, as Buyer, and Trinity Rail Group, LLC, as Seller, dated May 24, 2018 is incorporated by reference to Exhibit 10.1 to GATX's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2018 (Note: Portions of this document have been omitted pursuant to a Request for Confidential Treatment filed with the Securities and Exchange Commission on July 27, 2018).](http://www.sec.gov/Archives/edgar/data/40211/000004021118000067/gatxfirstamendmenttosupp.htm)  |
| 10.3 | [Supply Agreement by and between GATX Corporation, as Buyer, and Trinity Rail Group, LLC, as Seller, dated September 30, 2022 is incorporated by reference to Exhibit 10.1 to GATX's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2022, file number 1-2328 (Note: Portions of this document have been omitted pursuant to Item 601 of Regulation S-K).](http://www.sec.gov/Archives/edgar/data/40211/000004021122000124/exhibit101trinityagreeme.htm) | [Supply Agreement by and between GATX Corporation, as Buyer, and Trinity Rail Group, LLC, as Seller, dated September 30, 2022 is incorporated by reference to Exhibit 10.1 to GATX's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2022, file number 1-2328 (Note: Portions of this document have been omitted pursuant to Item 601 of Regulation S-K).](http://www.sec.gov/Archives/edgar/data/40211/000004021122000124/exhibit101trinityagreeme.htm) |
| 10.4 | [GATX Corporation 2004 Equity Incentive Compensation Plan is incorporated herein by reference to Exhibit C to the Definitive Proxy Statement filed on March 18, 2004 in connection with GATX's 2004 Annual Meeting of Shareholders, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000095013704001992/c82191ddef14a.txt) | [GATX Corporation 2004 Equity Incentive Compensation Plan is incorporated herein by reference to Exhibit C to the Definitive Proxy Statement filed on March 18, 2004 in connection with GATX's 2004 Annual Meeting of Shareholders, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000095013704001992/c82191ddef14a.txt) |
|  | i. | [Amendment of said Plan, effective as of December 7, 2007, is incorporated herein by reference to Exhibit 10.28 to GATX's Annual Report on Form 10-K for the fiscal year ended December 31, 2007, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000095013708003102/c22861exv10w28.txt) |
|  | ii. | [Second Amendment of GATX Corporation 2004 Equity Incentive Compensation Plan effective October 22, 2010, is incorporated by reference to Exhibit 10.7(ii) to GATX's Annual Report on Form 10-K for the fiscal year ended December 31, 2010, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000095012311017209/c61268exv10w7wii.htm) |
| 10.5 | [Form of GATX Corporation Stock-Settled Stock Appreciation Right (SAR) Agreement for grants under the 2004 Equity Incentive Compensation Plan to executive officers on or after January 1, 2009, incorporated herein by reference to Exhibit 10.2 to GATX's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000095013709003490/c50951exv10w2.htm) | [Form of GATX Corporation Stock-Settled Stock Appreciation Right (SAR) Agreement for grants under the 2004 Equity Incentive Compensation Plan to executive officers on or after January 1, 2009, incorporated herein by reference to Exhibit 10.2 to GATX's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000095013709003490/c50951exv10w2.htm) |
| 10.6 | [GATX Corporation 2012 Incentive Award Plan is incorporated herein by reference to Exhibit A to the Definitive Proxy Statement filed on March 16, 2012 in connection with GATX's 2012 Annual Meeting of Shareholders, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000119312512118680/d291059ddef14a.htm#tx291059_37) | [GATX Corporation 2012 Incentive Award Plan is incorporated herein by reference to Exhibit A to the Definitive Proxy Statement filed on March 16, 2012 in connection with GATX's 2012 Annual Meeting of Shareholders, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000119312512118680/d291059ddef14a.htm#tx291059_37) |
|  | i. | [Amendment and Restatement of said Plan, effective May 5, 2017, is incorporated herein by reference to Exhibit C to the Definitive Proxy Statement filed on March 24, 2017 in connection with GATX's 2017 Annual Meeting of Shareholders, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000119312517094964/d326415ddef14a.htm#tx326415_53) |
| 10.7 | [GATX Corporation Cash Incentive Compensation Plan is incorporated herein by reference to Exhibit D to the Definitive Proxy Statement filed on March 18, 2004 in connection with GATX's 2004 Annual Meeting of Shareholders, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000095013704001992/c82191ddef14a.txt) | [GATX Corporation Cash Incentive Compensation Plan is incorporated herein by reference to Exhibit D to the Definitive Proxy Statement filed on March 18, 2004 in connection with GATX's 2004 Annual Meeting of Shareholders, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000095013704001992/c82191ddef14a.txt) |
|  | i. | [Amendment of said Plan, effective as of December 7, 2007, is incorporated herein by reference to Exhibit 10.30 to GATX's Annual Report on Form 10-K for the fiscal year ended December 31, 2007, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000095013708003102/c22861exv10w30.txt) |
| 10.8 | [Form of Amended and Restated Agreement for Employment Following a Change of Control dated as of January 1, 2009, between GATX Corporation and](http://www.sec.gov/Archives/edgar/data/40211/000095013709001303/c48751exv10w28.htm)[Robert C. Lyons](http://www.sec.gov/Archives/edgar/data/40211/000095013709001303/c48751exv10w28.htm)[is incorporated herein by reference to Exhibit 10.2](http://www.sec.gov/Archives/edgar/data/40211/000095013709001303/c48751exv10w28.htm)[8](http://www.sec.gov/Archives/edgar/data/40211/000095013709001303/c48751exv10w28.htm)[to GATX's Annual Report on Form 10-K for the fiscal year ended December 31, 2008, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000095013709001303/c48751exv10w28.htm) | [Form of Amended and Restated Agreement for Employment Following a Change of Control dated as of January 1, 2009, between GATX Corporation and](http://www.sec.gov/Archives/edgar/data/40211/000095013709001303/c48751exv10w28.htm)[Robert C. Lyons](http://www.sec.gov/Archives/edgar/data/40211/000095013709001303/c48751exv10w28.htm)[is incorporated herein by reference to Exhibit 10.2](http://www.sec.gov/Archives/edgar/data/40211/000095013709001303/c48751exv10w28.htm)[8](http://www.sec.gov/Archives/edgar/data/40211/000095013709001303/c48751exv10w28.htm)[to GATX's Annual Report on Form 10-K for the fiscal year ended December 31, 2008, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000095013709001303/c48751exv10w28.htm) |
| 10.9 | [Form of Agreement for Employment Following a Change of Control between GATX Corporation and Thomas A. Ellman (dated as of January 1, 2014), Paul F. Titterton (dated as of August 1, 2022), Kim Nero (dated as of May 1, 2021) and Brian L. Glassberg (dated as of December 1, 2022) is incorporated herein by reference to Exhibit 10.1 to GATX's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000004021115000024/cocagreementtier1post200.htm) | [Form of Agreement for Employment Following a Change of Control between GATX Corporation and Thomas A. Ellman (dated as of January 1, 2014), Paul F. Titterton (dated as of August 1, 2022), Kim Nero (dated as of May 1, 2021) and Brian L. Glassberg (dated as of December 1, 2022) is incorporated herein by reference to Exhibit 10.1 to GATX's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000004021115000024/cocagreementtier1post200.htm) |
| 10.10 | [Form of Agreement for Employment following a Change of Control between GATX Corporation and Niyi Adedoyin (dated as of January 29, 2016), Jennifer McManus (dated as of October 30, 2020)](http://www.sec.gov/Archives/edgar/data/40211/000004021115000024/cocagreementtier2post200.htm)[, Jennifer Van Aken (dated as of October 30, 2020), Jeffery R. Young (dated as of February 1, 2015), and Robert A. Zmudka (dated as of August 9, 2018) is incorporated by reference to Exhibit 10.2 to GATX's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000004021115000024/cocagreementtier2post200.htm) | [Form of Agreement for Employment following a Change of Control between GATX Corporation and Niyi Adedoyin (dated as of January 29, 2016), Jennifer McManus (dated as of October 30, 2020)](http://www.sec.gov/Archives/edgar/data/40211/000004021115000024/cocagreementtier2post200.htm)[, Jennifer Van Aken (dated as of October 30, 2020), Jeffery R. Young (dated as of February 1, 2015), and Robert A. Zmudka (dated as of August 9, 2018) is incorporated by reference to Exhibit 10.2 to GATX's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000004021115000024/cocagreementtier2post200.htm) |
| 10.11 | [Form of GATX Corporation Indemnification Agreement for directors as of February 23, 2009, is incorporated herein by reference to Exhibit 10.1 to GATX's Form 8-K dated February 24, 2009, file number 1-2328.](http://www.sec.gov/Archives/edgar/data/40211/000095013709001262/c49621exv10w1.htm) | [Form of GATX Corporation Indemnification Agreement for directors as of February 23, 2009, is incorporated herein by reference to Exhibit 10.1 to GATX's Form 8-K dated February 24, 2009, file number 1-2328.](http://www.sec.gov/Archives/edgar/data/40211/000095013709001262/c49621exv10w1.htm) |
| 10.12 | [Form of Stock-Settled Stock Appreciation Right (SAR) Agreement for awards under the GATX Corporation 2012 Incentive Award Plan to executive officers with Agreements for Employment Following a Change of Control is incorporated by reference to Exhibit 10.24 of GATX's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000144530513000340/exhibit1024.htm) | [Form of Stock-Settled Stock Appreciation Right (SAR) Agreement for awards under the GATX Corporation 2012 Incentive Award Plan to executive officers with Agreements for Employment Following a Change of Control is incorporated by reference to Exhibit 10.24 of GATX's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000144530513000340/exhibit1024.htm) |

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10.13 [Form of Performance Share Agreement for grants under the GATX Corporation 2012 Incentive Award Plan to executive officers with Agreements for Employment Following a Change of Control is incorporated by reference to Exhibit 10.25 of GATX's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000144530513000340/exhibit1025.htm)

10.14 [Form of Performance Share Agreement (with cash-election option) for grants under the GATX Corporation 2012 Incentive Award Plan to executive officers with Agreements for Employment Following a Change of Control is incorporated by reference to Exhibit 10.4 of GATX's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000004021122000058/a2022performanceshareagr.htm)

10.15 [Form of Performance Share Agreement (with cash-election option) for grants under the GATX Corporation Amended and Restated 2012 Incentive Award Plan to executive officers following adoption of the Tax Cuts and Jobs Act of 2017 is incorporated by reference to Exhibit 10.1 to GATX's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000004021118000034/a2018performanceshareagr.htm)

10.16 [Form of Non-Qualified Stock Option Agreement for awards under the GATX Corporation 2012 Incentive Award Plan to executive officers with Agreements for Employment Following a Change of Control, is incorporated by reference to Exhibit 10.3 to GATX's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2022, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000004021122000058/a2022nqsoagreement-execo.htm)

10.17 [Form of Restricted Stock Unit Agreement for Grants under the Amended and Restated 2012 Incentive Award Plan to Thomas A. Ellman is incorporated by reference to Exhibit 10.1 to GATX's Form 8-K dated January 28, 2022, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000004021122000012/a101rsuagreementforworki.htm)

10.18 [Form of Confidential Information, Non-Competition, and Non-Solicitation Agreement between the Corporation and Thomas A. Ellman is incorporated by reference to Exhibit 10.2 to GATX's Form 8-K dated January 28, 2022, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000004021122000012/a102non-competeagreement.htm)

10.19 [Form of Restricted Stock Unit Agreement for Grants under the Amended and Restated 2012 Incentive Award Plan to directors is incorporated by reference to Exhibit 10.2 to GATX's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2022, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000004021122000058/a2012plan-rsuagreementxd.htm)

10.20 [Amended and Restated GATX Corporation Directors' Voluntary Deferred Fee Plan, effective as of January 1, 2022, is incorporated by reference to Exhibit 10.1 to GATX's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2022, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000004021122000058/gatxcorporationdirectorv.htm)

10.21 [Amended and Restated GATX Corporation Director's Phantom Stock Plan, effective as of December 2, 2016, is incorporated by reference to Exhibit 10.2 to GATX's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000004021117000012/amendeddirectorsphantoms.htm)

10.22 [Employment Agreement, effective as of October 1, 2022, between GATX Corporation and Necati Gokce Tezel is incorporated by reference to Exhibit 10.1 to GATX's Form 8-K dated August 12, 2022, file number 1-2328.\*](http://www.sec.gov/Archives/edgar/data/40211/000004021122000097/separation_agreement.htm)

10.23 Undertakings to the GATX Corporation Salaried Employees' Retirement Savings Plan is incorporated herein by reference to GATX's Annual Report on Form 10-K for the fiscal year ended December 31, 1982, file number 1-2328.\* (Paper copy).

_______

(\*) Compensatory Plans or Arrangements.

Certain instruments evidencing long-term indebtedness of GATX Corporation are not being filed as exhibits to this Report because the total amount of securities authorized under any such instrument does not exceed 10% of GATX Corporation's total assets. GATX Corporation will furnish copies of any such instruments upon request of the Securities and Exchange Commission.

**Item 16. *Form 10-K Summary***

N/A.

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**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | |
|:---|:---|
| GATX CORPORATION | GATX CORPORATION |
| | *Registrant* |
| | /s/ ROBERT C. LYONS |
| | Robert C. Lyons |
| | President and Chief Executive Officer |
| | February 16, 2023 |

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***Power of Attorney.*** KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Thomas A. Ellman, Brian L. Glassberg, and Jennifer M. McManus, and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K, and to file the same, with any and all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, and hereby grants to such attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

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Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

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| | |
|:---|:---|
| /s/ ROBERT C. LYONS | President and<br>Chief Executive Officer and Director<br>(Principal Executive Officer) |
| Robert C. Lyons | President and<br>Chief Executive Officer and Director<br>(Principal Executive Officer) |
| February 16, 2023 | President and<br>Chief Executive Officer and Director<br>(Principal Executive Officer) |
| /s/ THOMAS A. ELLMAN | Executive Vice President<br>and Chief Financial Officer<br>(Principal Financial Officer) |
| Thomas A. Ellman | Executive Vice President<br>and Chief Financial Officer<br>(Principal Financial Officer) |
| February 16, 2023 | Executive Vice President<br>and Chief Financial Officer<br>(Principal Financial Officer) |
| /s/ JENNIFER M. MCMANUS | Senior Vice President, Controller and Chief Accounting Officer<br>(Principal Accounting Officer) |
| Jennifer M. McManus | Senior Vice President, Controller and Chief Accounting Officer<br>(Principal Accounting Officer) |
| February 16, 2023 | Senior Vice President, Controller and Chief Accounting Officer<br>(Principal Accounting Officer) |
| /s/ DIANE M. AIGOTTI | Director |
| Diane M. Aigotti | Director |
| February 16, 2023 | Director |
| /s/ ANNE L. ARVIA | Director |
| Anne L. Arvia | Director |
| February 16, 2023 | Director |
| /s/ JAMES B. REAM | Director |
| James B. Ream | Director |
| February 16, 2023 | Director |
| /s/ ADAM L. STANLEY | Director |
| Adam L. Stanley | Director |
| February 16, 2023 | Director |
| /s/ DAVID S. SUTHERLAND | Director |
| David S. Sutherland | Director |
| February 16, 2023 | Director |
| /s/ STEPHEN R. WILSON | Director |
| Stephen R. Wilson | Director |
| February 16, 2023 | Director |
| /s/ PAUL G. YOVOVICH | Director |
| Paul G. Yovovich | Director |
| February 16, 2023 | Director |

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## Exhibit 10.1

![](exhibit101forworkiva001.jpg)

Exhibit 10.1 NON-EMPLOYEE DIRECTOR COMPENSATION The Compensation Committee, with assistance from Pay Governance, reviews and makes recommendations to the Board regarding the form and amount of compensation for non- -employee director compensation program is designed to enable continued attraction and retention of highly qualified directors and to address the time, effort, expertise, and accountability required of active Board membership. -employee director compensation program currently consists of the elements and amounts shown in the table below: Our Non-Employee Director Compensation Program Type of Fee Current Annual Fee Amount ($) - Cash Retainer 90,000 - Equity Retainer) 125,000 - Non-Executive Chair of the Board 60,000 - Audit Committee Chair 22,500 - Compensation Committee Chair 17,500 - Governance Committee Chair 15,000 -employee directors may defer receipt of up to 100% of their cash retainer and other cash fees set forth above in the form of either cash or restricted stock RSUs . Effective January 1, 2022, we amended and restated our Deferred Fee Plan to provide that, as of April 22, 2022, deferrals could no longer be made in the form of phantom stock units; however, prior to that date, deferrals were permitted into phantom stock. If the deferral is in cash, the deferred amount accrues interest at a rate equal to the 20-year US government bond rate. If the deferral is in RSUs, the units are credited to an account for each participating director along with dividends and are se election/distribution form on file. Under the Deferred Fee Plan, non-employee directors may elect to defer all (but not less than all) of their equity retainer, which is issued as an RSU award on the date of the annual meeting. The RSUs vest in full and, unless deferred per a deferral election, are settled in shares of GATX common stock on the date of the first annual meeting at which the director is elected following the grant date, subject to his or her continued service through such date. Prior to April 22, 2022, each non- Plan for both cash deferrals and the equity retainer. Outstanding RSUs and deferred director RSU awards and deferred phantom stock accounts are credited with additional units representing dividends declared on GATX common stock based on the date such dividend is paid. and phantom stock units is made in shares of common stock equal to the number of RSUs and phantom stock units then credited to his or her account. Any fractional units are paid in cash.

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## Exhibit 10.2

![](exhibit102-xgatxxusexecu001.jpg)

Exhibit 10.2 GATX CORPORATION U.S. EXECUTIVE SEVERANCE PLAN (AND SUMMARY PLAN DESCRIPTION) Effective February 15, 2023 This GATX Corporation U.S. Executive Severance Plan (this Plan) is effective as of February 15, 2023. The purpose of this Plan is to provide severance benefits to certain eligible executive-level employees of GATX Corporation (the Company) whose employment with a Participating Company (as defined below) is terminated under the circumstances described below. This Plan is an employee welfare benefit plan subject to the Employee Retirement Income Security Act of 1974, as amended (ERISA). This Plan document is also the summary plan description of this Plan. The Plan provides benefits to a select group of management or highly compensated employees of the References in this Plan to you or your are references to a Covered Employee (as defined below) of a Participating Company. Capitalized terms not otherwise defined herein shall have the meanings set forth in Section 5 below. 1. General Eligibility. An individual is eligible for benefits under this Plan only if he or she is a Covered Employee on the date he or she experiences a Qualifying Termination. Covered Employee for purposes of this Plan means an employee of the Company or any parent or subsidiary of the Company Participating Company with the title of Senior Vice President or above who has been designated by the Plan Administrator as a participant in the Plan and is provided with and countersigns a Participation Notice (as defined in Section 21 hereof) in accordance with Section 21 hereof. For the avoidance of doubt, you will continue to be considered a Covered Employee if you are on a Participating Company-approved leave of absence immediately prior to the date of your Qualifying Termination. 2. Qualifying Termination Outside of a Change in Control Period. If you experience a Qualifying Termination outside of a Change in Control Period, then, subject to (i) your execution and delivery of a release of claims agreement in substantially the form attached as Appendix A-1 or A-2 hereto, as applicable (each, a Release of Claims), that becomes effective and irrevocable within sixty (60) days of your Termination Date (or such shorter period as determined by the Plan Administrator), and (ii) your continued compliance with Section 16 below, then you shall be entitled to receive the following severance payments and benefits applicable to your Tier as of the date of your Qualifying Termination as set forth on Appendix B hereto (which amounts shall be in addition to the Accrued Obligations): (a) Severance. You shall be entitled to receive an amount equal to the sum of (i) your Monthly Base Compensation for the Severance Period applicable to your Tier as of the date of your Qualifying Termination as set forth on Appendix B hereto, plus (ii) the Bonus Amount applicable to your Tier as of the date of your Qualifying Termination as set forth on Appendix B hereto, payable in a cash lump sum within sixty (60) days following the Termination Date. (b) Current Period Bonus. You shall be entitled to receive an amount equal to your annual bonus for the fiscal year of the Company in which your Qualifying Termination occurs, based on actual performance results for such fiscal year for elements of such bonus unrelated to your individual performance, and assuming one hundred percent (100%) achievement of any performance objectives relating to your individual performance, if any, which annual bonus shall be pro-rated for the portion of such fiscal year elapsed prior to the date of your Qualifying Termination. Such amount shall be paid when in a cash lump sum

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![](exhibit102-xgatxxusexecu002.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2 (but in no event later than March 15 of the calendar year following the calendar year in which your Qualifying Termination occurs). (c) Prior Period Bonus. You shall be entitled to receive an amount equal to your Prior Period Bonus, if any, payable in a cash lump sum within sixty (60) days following the Termination Date. (d) Healthcare Continuation. If you, and your spouse and/or dependents have coverage on your Termination Date under a group health plan sponsored by the Company and timely and properly elect to receive continued group health plan coverage under COBRA, the Company will pay the total applicable premium cost for such COBRA coverage (other than for coverage under a health flexible spending account), beginning with the first month of such COBRA coverage, for the Severance Period applicable to your Tier as of the date of your Qualifying Termination as set forth on Appendix B hereto. If insurance plans, the Company shall provide or reimburse you for substantially equivalent coverage under other third-party insurance sources reasonably acceptable to you. Notwithstanding the foregoing, in the event that the Company determines, in its sole discretion, that the Company cannot provide the foregoing benefits in a manner that is exempt from Section 409A (as defined below) or that is otherwise compliant with applicable law (including, without limitation, Code Section 105(h) or Section 2716 of the Public Health Service Act), the Company shall instead pay to you the foregoing monthly amount as a taxable monthly payment for the foregoing COBRA coverage period (or any remaining portion thereof). You shall be solely responsible for all matters relating to continuation of coverage pursuant to COBRA, including, without limitation, the election of such coverage and the timely payment of premiums. (e) Equity Plan Awards. The Awards shall be Equity Plans and related award agreements. (f) Outplacement. The Company shall, at a maximum cost of $25,000, provide you with outplacement services through an outplacement firm designated by the Company for a period of twelve (12) months following your Termination Date. (g) Employee Assistance Program. You and your immediate family members shall be eligible for the continued use of the Employee Assistance Program of the Company during the ninety (90) day period following your Termination Date. (h) Tuition Reimbursement Program. You shall be eligible to receive tuition reimbursement for classes in which you were enrolled in as of your Termination Date; provided, however, that you successfully complete such classes in accordance with the Educational Assistance Policy of the Company. 3. Qualifying Termination During a Change in Control Period. If you experience a Qualifying Termination during a Change in Control Period, then subject to (i) Section 4(b) to the extent you are a party to an Individual CIC Agreement at the time of your Qualifying Termination during a Change in Control Period, (ii) your execution and delivery of a Release of Claims that becomes effective and irrevocable within sixty (60) days of your Termination Date (or such shorter period as determined by the Plan Administrator), and (iii) your continued compliance with Section 16 below, you shall be entitled to receive the following severance payments and benefits applicable to your Tier as of the date of your Qualifying Termination as set forth on Appendix C hereto (which amounts shall be in addition to the Accrued Obligations): (a) Severance. You shall be entitled to receive an amount equal to the sum of (i) your Monthly Base Compensation for the Severance Period applicable to your Tier as of the date of your Qualifying Termination as set forth on Appendix C hereto, plus (ii) the Bonus Amount applicable to your

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![](exhibit102-xgatxxusexecu003.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3 Tier as of the date of your Qualifying Termination as set forth on Appendix C hereto, payable in a cash lump sum within sixty (60) days following the Termination Date. (b) Current Period Bonus. You shall be entitled to receive an amount equal to your Target Bonus for the fiscal year of the Company in which your Qualifying Termination occurs, which Target Bonus shall be pro-rated for the portion of such fiscal year elapsed prior to the date of your Qualifying Termination. Such amount shall be payable in a cash lump sum within sixty (60) days following the Termination Date. (c) Prior Period Bonus. You shall be entitled to receive an amount equal to your Prior Period Bonus, if any, payable in a cash lump sum within sixty (60) days following the Termination Date. (d) Healthcare Continuation. If you, and your spouse and/or dependents have coverage on your Termination Date under a group health plan sponsored by the Company and timely and properly elect to receive continued group health plan coverage under COBRA, the Company will pay the total applicable premium cost for such COBRA coverage (other than for coverage under a health flexible spending account), beginning with the first month of such COBRA coverage, for the Severance Period applicable to your Tier as of the date of your Qualifying Termination as set forth on Appendix C hereto. If the Company is not reasonably able to continue health insurance benefits coverage under th insurance plans, the Company shall provide or reimburse you for substantially equivalent coverage under other third-party insurance sources reasonably acceptable to you. Notwithstanding the foregoing, in the event that the Company determines, in its sole discretion, that the Company cannot provide the foregoing benefits in a manner that is exempt from Section 409A (as defined below) or that is otherwise compliant with applicable law (including, without limitation, Code Section 105(h) or Section 2716 of the Public Health Service Act), the Company shall instead pay to you the foregoing monthly amount as a taxable monthly payment for the foregoing COBRA coverage period (or any remaining portion thereof). You shall be solely responsible for all matters relating to continuation of coverage pursuant to COBRA, including, without limitation, the election of such coverage and the timely payment of premiums. (e) Equity Plan Awards. The Awards shall be governed by the app Equity Plans and related award agreements. (f) Outplacement. The Company shall, at a maximum cost of $25,000, provide you with outplacement services through an outplacement firm designated by the Company for a period of twelve (12) months following your Termination Date. (g) Employee Assistance Program. You and your immediate family members shall be eligible for the continued use of the Employee Assistance Program of the Company during the ninety (90) day period following your Termination Date. (h) Tuition Reimbursement Program. You shall be eligible to receive tuition reimbursement for classes in which you were enrolled in as of your Termination Date; provided, however, that you successfully complete such classes in accordance with the Educational Assistance Policy of the Company. 4. No Duplication of Benefits; WARN Offset and Other Reductions. (a) In the event of your Qualifying Termination, you shall only be entitled to receive severance benefits under Section 2 or Section 3 of this Plan, as applicable, but in no event will you be entitled to benefits under more than one such section. Notwithstanding any provision of the Plan to the contrary, if a is terminated for any reason other than due to a Qualifying

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![](exhibit102-xgatxxusexecu004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4 Termination, the Covered Employee shall not be entitled to receive any severance benefits under the Plan, and the Company shall not have any obligation to such Covered Employee under the Plan. (b) Notwithstanding the foregoing, in the event that a Covered Employee is a party to an individual written change in control severance agreement with the Company identified on Appendix D attached hereto, including any future amendments thereto Individual CIC Agreement Covered Employee shall not be eligible for the benefits under this Plan during the Individual CIC Agreement (as defined in such Individual CIC Agreement) and such Individual CIC Agreement shall govern the payments and benefits to be provided to such Covered Employee in the event such Individual CIC Agreement. In addition, in the event an Individual CIC Agreement provides for more favorable benefits to a Covered Employee in the event an Excise Tax (as defined below) is payable by the Covered Employee than the treatment prescribed under Section 19, Section 19 shall not apply to such Covered Employee and the more favorable provision contained in the Individual CIC Agreement shall apply to such Covered Employee. (c) Unless Section 4(b) applies to a Covered Employee, this Plan shall be the only plan, agreement or arrangement with respect to which benefits may be provided to Covered Employees upon a Qualifying Termination and supersedes all prior agreements, arrangements or related communications of the Company relating to separation benefits or accelerated vesting benefits on a Qualifying Termination for the Covered Employees, whether formal or informal, or written or unwritten. However, if a prior plan or agreement requires the consent of the Covered Employee in order for such prior plan or agreement to be modified or amended or superseded by this Plan, such consent must be obtained from such Covered Employee in order for this Plan to supersede such prior plan or agreement. Notwithstanding the foregoing, as set forth in Sections 2(e) and 3(e), the terms of the Equity Plans and any applicable Award agreement shall continue to govern the terms of any such Awards. (d) Subject to Sections 4(b) and 4(c) above, a Covered Employee shall not be entitled to any severance benefits under this Plan which duplicates a payment or benefit received or receivable by the Covered Employee under any Individual CIC Agreement, or any other plan, program or arrangement of the Company or any severance required by applicable law or regulation, including, without limitation, WARN te or local statute, rule or regulation. If, notwithstanding Sections 4(b) and 4(c), a Covered Employee has a right to payments or benefits upon a Qualifying Termination that duplicate the severance benefits under this Plan, the benefits under this Plan shall be reduced, dollar for dollar, by the amount of the duplicate payment(s) and benefit(s). The benefits provided under this Plan are intended to satisfy, in whole or in part, any and all statutory obligations that may arise out of termination of employment, and the Company shall so construe and enforce the terms of this Plan. The Plan all or a portion of such reductions to the severance benefits of one employee and the amount of such reductions shall in no way obligate the Plan Administrator to waive the same reductions in the same amounts to the severance benefits of any other employees, even if similarly situated. Such reductions may be applied on a retroactive basis, with severance benefits previously paid being recharacterized as payments pursuant to a statutory obligation of the Company. (e) In furtherance of the foregoing, individuals who are Covered Employees under this Plan shall not be eligible participants in the GATX Corporation Amended and Restated Discretionary Severance Benefit Plan. 5. Definitions. For the purposes of this Plan, the following terms shall have the following meanings:

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![](exhibit102-xgatxxusexecu005.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5 (a) Accrued Obligations means, for a Covered Employee, the (i) base salary otherwise payable through the Termination Date, which shall be paid to you within thirty (30) days of the Termination Date (or earlier as required under applicable law), (ii) unreimbursed business expenses reimbursable under Company policies then in effect, (iii) earned and accrued vacation pay and/or paid time off, if applicable, to the extent not theretofore paid, through the Termination date, which shall be paid to you within thirty (30) days of the Termination Date (or earlier as required under applicable law), and (iv) to the extent not otherwise paid or provided pursuant to this Plan, the Other Benefits that may be due to such Covered Employee in accordance with the terms of the arrangement providing for such amounts or benefits, which amounts shall be paid as required under applicable law. (b) Awards means each outstanding and unvested equity award held by you granted pursuant to an Equity Plan, including, without limitation, each restricted stock, stock option, restricted stock unit, performance stock unit, stock appreciation right and or other equity-based award. (c) Board means the Board of Directors of the Company. (d) Bonus Amount means your Target Bonus (or multiple thereof) payable upon a Qualifying Termination based on your Tier at the time of your Qualifying Termination and as forth on Appendix B or C, as applicable. (e) Cause means: (i) your willful and continued failure to perform substantially your duties with any Participating Company (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to you by the Board or the Chief Executive Officer of the Company which specifically identifies the manner in which the Board or Chief Executive Officer believes that you have not substantially performed your duties; or (ii) the willful engaging by you in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company. For purposes of this provision, no act or failure to act, on your part, shall be considered willful unless it is done, or omitted to be done, by you in bad faith or without reasonable belief that your action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the instructions or concurrence of the Chief Executive Officer or a senior officer of the Company or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by you in good faith and in the best interests of the Company. Your cessation of employment shall not be deemed to be for Cause unless and until there shall have been delivered to you a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Board at a meeting of the Board called and held for such purpose (after reasonable notice is provided to you and you are given an opportunity, together with counsel, to be heard before the Board), finding that, in the good faith opinion of the Board, you are guilty of the conduct described in clause (i) or (ii) above, and specifying the particulars thereof in detail. (f) Change in Control means: (i) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the Exchange Act)) (a Person) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (A) the then outstanding shares of common stock of the Company (the Outstanding Company Common Stock) or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the Outstanding Company

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![](exhibit102-xgatxxusexecu006.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6 Voting Securities); provided, however, that for purposes of this clause (i), the following acquisitions shall not constitute a Change in Control: (1) any acquisition directly from the Company, (2) any acquisition by the Company, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or (4) any acquisition by any corporation pursuant to a transaction which complies with clauses (A), (B) and (C) of clause (iii) of this definition; or (ii) Individuals who, as of the Effective Date, constitute the Board (the Incumbent Board) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or (iii) Consummation of a reorganization, merger or consolidation or sale or other disposition (including, without limitation, a disposition occurring by merger, consolidation, sale, or other similar transactions of one or more subsidiaries of the Company) of all or substantially all of the assets of the Company (a Business Combination), in each case unless, following such Business Combination (other than a Business Combination of the type referred to in the first parenthetical of this clause (iii) which results in the disposition of all or substantially all of the assets of the Company), (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than sixty five percent (65%) of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, twenty percent (20%) or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination and (C) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or (iv) Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company; or (v) Consummation of a reorganization, merger or consolidation or sale or other disposition of any subsidiary or of all or substantially all of the assets of any subsidiary of the Company or a disposition (in a single transaction or series of integrated transactions) of all or substantially all of the assets of an operating segment of the Company as identified in the financial statements included in the -K (each a Business Segment) that is, in either case, your primary employer or to which your responsibilities primarily relate immediately prior thereto, and which does not constitute a Business Combination as defined in clause (iii) above, unless immediately thereafter the Company, either directly or indirectly, owns (A) at least fifty percent (50%) of the voting

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![](exhibit102-xgatxxusexecu007.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7 stock of any such subsidiary disposed of or, (B) in the case of the disposition of all or substantially all of the assets of a subsidiary or Business Segment, at least fifty percent (50%) of both the voting power over and the equity in any entity holding title to such assets. Notwithstanding the foregoing, to the extent required to avoid the imposition of additional taxes under Section 409A, such Change in Control must also constitute a change in control event within the meaning of Treasury Regulation Section 1.409A-3(i)(5). (g) Change in Control Period means the period of time commencing on the date of a Change in Control and ending on the second anniversary of such Change in Control. (h) Disability isability that entitles you to disability income benefits under the GATX Long Term Disability Income Plan as in effect from time to time. (i) Equity Plan means an equity incentive plan maintained by the Company. (j) Good Reason means the occurrence of one or more of the following conditions without your written consent: (i) A material diminution in your base compensation; (ii) A material diminution in your authority, duties, or responsibilities; (iii) You are required to report to a supervisor with materially less authority, duties, or responsibilities than the authority, duties, and responsibilities of the supervisor who had the greatest such authority, duties, and responsibilities at the time you were required to report to such supervisor during the 120-day period immediately preceding the first day of the Change in Control Period; (iv) A material diminution in the budget over which you retain authority, compared with the most significant budget over which you had authority at any time during the 120-day period immediately preceding the first day of the Change in Control Period. (v) A material change in the geographic location at which you must perform the services. (vi) Any other action or inaction by the Company that constitutes a material breach of this Plan or any written agreement between you and the Company. If (I) you provide written notice to the Company of the occurrence of Good Reason within a reasonable time (not more than ninety (90) days) after you have knowledge of the circumstances constituting Good Reason, which notice specifically identifies the circumstances which you believe constitute Good Reason; (II) the Company fails to notify you of the Company's intended method of correction within a reasonable period of time (not less than thirty (30) days) after the Company receives the notice, or the Company fails to correct the circumstances within a reasonable period of time after such notice (except that no such opportunity to correct shall be applicable if the circumstances constituting Good Reason are those described in clause (v) above, relating to relocation); and (III) you resign within sixty (60) days after receiving the Company's response, if such notice does not indicate an intention to correct such circumstances, or within a reasonable time after the Company fails to correct such circumstances (provided that in no event may such termination occur more than two years after the initial existence of the condition constituting Good Reason); then you shall be considered to have terminated for Good Reason.

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![](exhibit102-xgatxxusexecu008.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8 (k) Monthly Base Compensation means (A) your annual base salary as in effect on the date of your Qualifying Termination (and without regard to any reduction in such annual base salary that gave rise to your resignation for Good Reason), divided by (B) twelve (12). Monthly Base Compensation does not include payments for incentive compensation, incentive payments, bonuses, commissions, benefits, fringe benefits, expense reimbursements, or other compensation. (l) Other Benefits means amounts or benefits to the extent that they are required to be provided to you after termination of your employment in accordance with the terms of a plan, program, policy, practice, contract, agreement or other arrangement; provided that Other Benefits will include only amounts and benefits that would be required to be provided in the absence of this Plan. (m) Plan Administrator means the Compensation Committee of the Board or such other committee or subcommittee of the Board to the extent that the powers or authority under the Plan have been delegated to such committee or subcommittee. (n) Prior Period Bonus immediately prior to the fiscal year in which the Termination Date occurs. For clarity, if the Termination Date occurs on or after the date on which the Company pays annual bonuses for the fiscal year ending immediately prior to the fiscal year in which the Termination Date occurs, then there shall be no Prior Period Bonus. (o) Qualifying Termination means (i) the termination of your employment by a Participating Company other than for Cause at any time, or (ii) your resignation for Good Reason during a Change in Control Period. Notwithstanding anything contained herein, in no event shall a Covered Employee be deemed to have experienced a Qualifying Termination if (x) such Covered Employee is offered and accepts an employment position with any Participating Company, or (y) in connection with a Change in Control, such Covered Employee is offered and accepts an employment position with the successor or purchaser entity (or an affiliate thereof), as applicable. A Qualifying Termination shall not include a termination due to your death or Disability. (p) Severance Period means the number of months following the Termination Date based on your Tier as of the date of your Qualifying Termination determined as set forth on Appendix B or C, as applicable. (q) Target Bonus means your target annual bonus pursuant to the) at the annualized rate in effect for the fiscal year in which your Qualifying Termination occurs and (ii) assuming one hundred percent (100%) achievement of individual duction in a Covered resignation for Good Reason). Notwithstanding the foregoing, your Target Bonus for purposes of the Plan shall be deemed to be the amount re your Termination Date if a target bonus has not been established for the then current fiscal year. (r) Termination Date means the date on which you experience a Qualifying Termination. 6. Withholding. The Company shall have the right to deduct from all payments hereunder all taxes that the Company determines are required by law to be withheld therefrom. Regardless of the amount withheld, the recipient of payments, benefits, or other income (including imputed income) under the Plan shall be solely responsible for all taxes owed with respect to such payments, benefits, and other income.

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![](exhibit102-xgatxxusexecu009.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9 7. Amendment of Plan. The Company, by action of the Compensation Committee, reserves the right to amend or terminate the Plan at any time, without advance notice to any Covered Employee and without regard to the effect of the amendment or termination on any Covered Employee or on any other individual. Any amendment or termination of the Plan will be in writing. Notwithstanding the preceding, (a) any amendment to the Plan that causes an individual or group of individuals to cease to be Covered Employees will not be effective unless it is communicated to the affected individual(s) in writing prior to the commencement of a Change in Control Period and (b) once a Covered Employee has incurred a Qualifying written consent, reduce or alter to the detriment of the Covered Employee, the benefits payable to that Covered Employee (including, without limitation, imposing additional conditions or modifying the timing of payment). In addition, notwithstanding the preceding, during a Change in Control Period, neither the Company nor any successor Plan in any way, nor take any other action, that (a) prevents that Covered Employee from becoming eligible for benefits under the Plan or (b) reduces or alters to the detriment of the Covered Employee the benefits payable, or potentially payable, to a Covered Employee under the Plan (including, without limitation, imposing additional conditions or modifying the timing of payment). For the avoidance of doubt, in the event a Change in Control occurs during the term of the Plan, the Plan shall not terminate until the Change in Control Period has expired and any benefits payable have been paid. 8. Claims Procedures. Normally, you do not need to present a formal claim to receive benefits payable under this Plan. If any person (the Claimant) believes that benefits are being denied improperly, that this Plan is not being operated properly, that fiduciaries of this Plan have breached their duties, or that being violated with respect to this Plan, the Claimant must file a formal claim, in writing, with the Plan Administrator. A formal claim must be filed within sixty (60) days after the date the Claimant first knew or should have known of the facts on which the claim is based, unless the Plan Administrator in writing consents otherwise or the deadline to file a claim is temporarily extended under the rules described in Appendix E. The Plan Administrator has adopted procedures for considering claims (which are set forth in Appendix E), which it may amend from time to time, as it sees fit. These procedures shall comply with all applicable legal requirements, and the Plan Administrator shall provide a Claimant, on request, with a copy of such amended claims procedures. The right to receive benefits under this Plan is contingent on a Claimant using the prescribed claims procedures to resolve any claim. 9. Plan Administration. (a) The Plan Administrator is responsible for the general administration and management of this Plan and shall have all powers and duties necessary to fulfill its responsibilities, including, but not limited to, the discretion to interpret and apply this Plan and to determine all questions relating to eligibility for benefits. This Plan shall be interpreted in accordance with its terms and their intended meanings. However, the Plan Administrator and all Plan fiduciaries shall have the discretion to interpret or construe ambiguous, unclear, or implied (but omitted) terms in any fashion they deem to be appropriate in their sole discretion, and to make any findings of fact needed in the administration of this Plan. The validity of any such interpretation, construction, decision, or finding of fact shall not be given de novo review if challenged in court, by arbitration, or in any other forum, and shall be upheld unless clearly arbitrary or capricious. (b) All actions taken and all determinations made in good faith by the Plan Administrator or by Plan fiduciaries will be final and binding on all persons claiming any interest in or under this Plan. To the extent the Plan Administrator or any Plan fiduciary has been granted discretionary not obligate it to exercise its authority in a like fashion thereafter.

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![](exhibit102-xgatxxusexecu010.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10 10. Funding and Payment of Benefits. This Plan shall be maintained in a manner to be considered unfunded for purposes of ERISA. The Company shall be required to make payments only as benefits become due and payable. No person shall have any right, other than the right of an unsecured general creditor against any Participating Company, with respect to the benefits payable hereunder, or which may be payable hereunder, to any employee. If the Company, acting in its sole discretion, establishes a reserve or other fund associated with this Plan, no person shall have any right to or interest in any specific amount or asset of such reserve or fund by reason of amounts which may be payable to such person under this Plan, nor shall such person have any right to receive any payment under this Plan except as and to the extent expressly provided in this Plan. The assets in any such reserve or fund shall be part of the general assets of the Company, subject to the control of the Company. 11. Successors. Any successor to the Company (whether direct or indirect and whether by business and/or assets shall assume the obligations under this Plan and agree expressly to perform any of the Company, including without limitation, a successor to a subsidiary of the Company (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise), to all or d the employees eligible under this Plan employed by the affiliate of the Company. For all purposes under this Plan, the term Company shall include business and/or assets which executes and delivers an assumption agreement or which becomes bound by the terms of the Plan by operation of law. All of your rights hereunder shall inure to the benefit of, and be enforceable by, your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 12. Limitation On Employee Rights; At-Will Employment. This Plan shall not give any employee the right to be retained in the service of a Participating Company or interfere with or restrict the right of a Participating Company to discharge or retire the employee. All employees of the Participating Companies are employed at will. 13. No Third-Party Beneficiaries. This Plan shall not give any rights or remedies to any person other than eligible employees hereunder (or their estates or beneficiaries, in the event of an eligible 14. Governing Law. The Plan is inte meaning of U.S. Department of Labor Regulation Section 2520.104-23 and shall be interpreted, administered, and enforced as such in accordance with ERISA. To the extent that state law is applicable, 15. No Assignment of Benefits. The rights of any person to payments or benefits under this Plan shall not be made subject to option or assignment, either by voluntary or involuntary assignment or by process, and any action in violation of this Section 15 shall be void. 16. Restrictive Covenants. (a) Restrictive Covenants. You hereby expressly confirm your continuing obligations to any Participating Company pursuant to the confidentiality provisions of any code of conduct of any Participating Company and/or any agreements regarding non-competition, non-solicitation, non- disparagement, confidentiality, assignment of inventions or other similar covenants between you and any

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![](exhibit102-xgatxxusexecu011.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11 Participating Company (the Restrictive Covenants). In addition, without limiting the foregoing, you agree as follows: (i) You acknowledge that in the course of your involvement in the activities of any Participating Company, you will have access to confidential and proprietary information including, but methods of operation, proprietary computer programs, business dealings, assets, capabilities, and all other planning, pricing, customer or client lists of the Participating Companies whether written, oral or otherwise. You agree that, before, on, and after the Effective Date, you shall keep confidential all information, knowledge or data relating to the Participating Companies, and their respective businesses, which shall have been obtained by you during your employment by the Participating Companies and which shall have been identified and held by the Company as proprietary and confidential and which shall not be or become public knowledge (other than by acts by you or your representatives in violation of this Section 16). During and after termination of your employment with the Company, you shall not, without the express written consent of the Board or as may otherwise be required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than the Company. (ii) You agree that, while employed by the Company and during the twelve month period after your Termination Date, you shall not, without the express written consent of the Board, be employed by, serve as a consultant to, or otherwise assist or directly or indirectly provide services to a Competitor in any location in the United States. The term Competitor means any enterprise (including a person, firm, business, division, or other unit, whether or not incorporated) during any period in which it is engaged in the business of leasing railcar assets. Nothing contained herein will prevent you from engaging in an activity otherwise prohibited by this clause (ii) for or with respect to any subsidiary, division or affiliate or unit (each, a Unit) of an entity if that Unit is not engaged in railcar leasing irrespective of whether another Unit of such entity engages in such competition (as long as you do not engage in prohibited activity for such other Unit). (iii) You agree that, while employed by the Company during the applicable Severance Period (determined by reference to the number of months of base pay in the Severance Period and without regard to whether such amount is paid in a lump sum), you shall not, without the express written consent of the Board, call on, service or solicit any party who is then or, during the twelve-month period prior to such solicitation by you was a customer or supplier of any Participating Company, provided that the restriction in this clause (iii) shall not apply to any activity on behalf of a business that is not a Competitor. (iv) You agree that, while employed by the Company during the applicable Severance Period, you shall not, solicit, entice, persuade or induce any individual who is employed by any Participating Company (or was so employed within 90 days prior to your action) to terminate or refrain from renewing or extending such employment or to become employed by or enter into contractual relations with any other individual or entity other than the Participating Companies, and you shall not approach any such employee for any such purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity. (v) You agree that you shall not disparage, criticize or defame any Participating Company and their respective affiliates, directors, officers, agents, partners, stockholders, employees, products, services, technology or business, either publicly or privately. The Company agrees that it shall not, and shall instruct its officers and directors to not, disparage, criticize, or defame you, either publicly or privately. Nothing in this clause (v) shall have application to any evidence or testimony required by any court, arbitrator, or government agency.

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![](exhibit102-xgatxxusexecu012.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12 (vi) In connection with any termination of employment, you shall return to the Company all Company documents (and all copies thereof) and other Company property that you have in his or her possession at any time, including but not limited to Company files, notes, drawings, records, business plans and forecasts, financial information, specification, computer-recorded information, tangible property (including, but not limited to, computers, laptops, pagers, etc.), credit cards, entry cards, identification badges and keys and any materials of any kind which contain or embody any proprietary or confidential information of Company (and all reproductions thereof). (vii) It is expressly understood and agreed that although you and the Company consider the restrictions contained in this Section 16 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Plan is an unenforceable restriction against you, the provisions of this Plan shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable. Alternatively, if any court of competent jurisdiction finds that any restriction contained in this Plan is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained herein. (viii) You acknowledge that the Company would be irreparably injured by a violation of this Section 16, and agree that the Company, in addition to any other remedies available to it for such breach or threatened breach, shall be entitled to a preliminary injunction, temporary restraining order, or other equivalent relief, restraining you from any actual or threatened breach of Section 16. If a bond is required to be posted in order for the Company to secure an injunction or other equitable remedy, the parties agree that said bond need not be more than a nominal sum. (b) Duty of Loyalty. Nothing in this Section 16 shall be construed as limiting your duty of loyalty to the Company, or any other duty you may otherwise have to the Company, while you are employed by the Company. (c) Whistleblower Protections and Trade Secrets. Notwithstanding anything to the contrary contained herein, nothing in this Plan or the Restrictive Covenants prohibits you from reporting possible violations of federal law or regulation to any United States governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or any other whistleblower protection provisions of state or federal law or regulation (including the right to receive an award for information provided to any such government agencies). Furthermore, in accordance with 18 U.S.C. § 1833, notwithstanding anything to the contrary in this Plan: (i) you shall not be in breach of this Plan, and shall not be held criminally or civilly liable under any federal or state trade secret law (A) for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (B) for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and (ii) if you file a lawsuit for retaliation by the Company for reporting a suspected violation of law, you may disclose the trade secret to your attorney, and may use the trade secret information in the court proceeding, if you file any document containing the trade secret under seal, and does not disclose the trade secret, except pursuant to court order. 17. Headings; Interpretation. Where the context so indicates, the singular will include the plural and vice versa. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Plan. Unless the context clearly indicates to the contrary, a reference to a statute or document shall be construed as referring to any subsequently enacted, adopted, or executed counterpart.

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![](exhibit102-xgatxxusexecu013.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13 18. Section 409A. To the extent applicable, this Plan shall be interpreted in accordance with Code Section 409A and Department of Treasury regulations and other interpretive guidance issued thereunder. The intent of the parties is that payments and benefits under this Plan comply with, or be exempt from Code Section 409A and, accordingly, to the maximum extent permitted, this Plan shall be interpreted to be in compliance with such intention. To the extent that any provision in this Agreement is ambiguous as to its compliance with or exemption from Code Section 409A, the provision shall be read in such a manner that no payments payable under this Plan shall be subject to an additional tax as defined in Section 409A(a)(1)(B) of the Code. (a) Separation from Service. Notwithstanding any provision to the contrary in this Plan, to the extent any payments to a Covered Employee pursuant to this Plan constitute non-qualified deferred compensation subject to Section 409A of the Code or are intended to be exempt from Section 409A of the Code pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii), then, to the extent required by Section 409A of the Code or to satisfy such exception, no amount shall be payable hereunder unless your termination of employment constitutes a separation from service with the Company within the meaning of Section 409A of the Code and the Department of Treasury regulations and other guidance promulgated thereunder (a Separation from Service). Any installments that qualify for the exception under Treasury Regulation Section 1.409A-l(b)(9)(iii) must be paid no later than the last day of the he Separation from Service occurs. (b) Specified Employee. Notwithstanding any provision to the contrary in this Plan, if you are deemed at the time of your Separation from Service to be a specified employee for purposes of Section 409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of any portion of the benefits to which you are entitled under this Plan is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of your benefits shall not be provided to you prior to the earlier of (A) the expiration of the six-month period measured from the date of your Separation from Service or (B) the date of your death. Upon the first business day following the expiration of the applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Section 18(b) shall be paid in a lump sum to you, and any remaining payments due under this Plan shall be paid as otherwise provided herein. (c) Expense Reimbursements and In-Kind Benefits. To the extent that any reimbursements or in-kind benefits provided pursuant to this Plan are subject to the provisions of Section 409A of the Code, any such reimbursements payable to you pursuant to this Plan shall be paid to you no later than December 31 of the year following the year in which the expense was incurred, the amount of expenses reimbursed or in-kind benefits provided in one year shall not affect the amount eligible for reimbursement or in-kind benefits to be provided in any subsequent year, and your right to reimbursement or in-kind benefits under this Plan will not be subject to liquidation or exchange for another benefit. (d) Installments. For purposes of Section 409A of the Code (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), your right to receive any installment payments under this Plan shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at all times be considered a separate and distinct payment. (e) Release. Notwithstanding anything to the contrary in this Plan, to the extent that any payments due under this Plan as a result of your termination of employment are subject to your execution and delivery of a Release of Claims, if you fail to execute the Release of Claims on or prior to the Release Expiration Date (as defined below) or timely revoke your acceptance of the Release of Claims thereafter, or the Release of Claims does not become effective and irrevocable within sixty (60) days following your Termination Date, you shall not be entitled to any payments or benefits otherwise conditioned on the Release of Claims. For purposes hereof, Release Expiration Date shall mean (1) if you are under forty (40) years old as of the Termination Date, the date that is seven (7) days following the

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14 Termination Date, or such shorter or longer time prescribed by the Company in the Release of Claims, and (2) if you are forty (40) years or older as of the Termination Date, the date that is twenty one (21) days following the Termination Date, or, if your termination of employment is in connection with an exit incentive or other employment termination program (as such phrase is defined in the Age Discrimination in Employment Act of 1967), the date that is forty five (45) days following such Termination Date. 19. Section 280G. (a) Parachute Payments. Subject to Section 4(b), in the event that any payment or benefit received or to be received by you pursuant to this Plan or the terms of any plan, arrangement or agreement (including any payment or benefit received in connection with a change of control or the termination of your employment) (all such payments and benefits being hereinafter referred to as the Total Payments) would be subject (in whole or part) to the excise tax (the Excise Tax) imposed under Section 4999 of the Code, then the Total Payments shall be reduced to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax but only if (i) the net amount of such Total Payments, as so reduced (after subtracting the amount of federal, state and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments) is greater than or equal to (ii) the net amount of such Total Payments without such reduction (after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which the Covered Employee would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments). The Total Payments shall be reduced in the following order: (A) reduction of any cash severance payments otherwise payable to the Covered Employee that are exempt from Section 409A of the Code, (B) reduction of any other cash payments or benefits otherwise payable to the Covered Employee that are exempt from Section 409A of the Code, but excluding any payment attributable to the stock that is exempt from Section 409A of the Code, (C) reduction of any other payments or benefits otherwise payable to the Covered Employee on a pro-rata basis or such other manner that complies with Section 409A of the Code, but excluding any payment attributable to the acceleration of vesting and from Section 409A of the Code, and (D) reduction of any payments attributable to the acceleration of vesting or payment with respect to any equity award exempt from Section 409A of the Code; provided, in case of clauses (B), (C) and (D), that reduction of any payments or benefits attributable to the acceleration of vesting of Company equity awards shall be first applied to Company equity awards that would otherwise vest last in time. The foregoing reductions shall be made in a manner that results in the maximum economic benefit to the Covered Employee on an after- tax basis and, to the extent economically equivalent payments or benefits are subject to reduction, in a pro rata manner. (b) Determinations. All determinations regarding the application of this Section 19 shall be made by an independent accounting firm or consulting group with nationally recognized standing and substantial expertise and experience in performing calculations regarding the applicability of Section 280G of the Code and the Excise Tax retained by the Company prior to the date of the applicable Change in Control (the 280G Firm). For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total Payments shall be taken into account which, in the written opinion of the 280G Firm, (A) does not constitute a parachute payment within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, or (B) constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the base amount (as defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation, (ii) no portion of the Total Payments the receipt or enjoyment of which a Covered Employee shall have waived at such time and in such manner as not to constitute a payment within the meaning of Section 280G(b) of the Code

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15 shall be taken into account, and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the 280G Firm in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. All determinations related to the calculations to be performed pursuant to this Section 280G Treatment section shall be done by the 280G Firm. (c) Cooperation and Expenses. The 280G Firm will be directed to submit its determination and detailed supporting calculations to both the Covered Employee and the Company within fifteen (15) days after notification from either the Company or the Covered Employee that the Covered Employee may receive payments which may be parachute payments. The Covered Employee and the Company will each provide the 280G Firm access to and copies of any books, records, and documents in their possession as may be reasonably requested by the 280G Firm, and otherwise cooperate with the 280G Firm in connection with the preparation and issuance of the determinations and calculations contemplated by this Plan. The fees and expenses of the 280G Firm for its services in connection with the determinations and calculations contemplated by this Plan will be borne solely by the Company. 20. Notices. Any notice required or permitted by this Plan shall be in writing and shall be delivered as follows with notice deemed given as indicated: (a) by personal delivery when delivered personally; (b) by overnight courier upon written verification of receipt; (c) by telecopy or facsimile transmission upon acknowledgment of receipt of electronic transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt. Notice shall be sent to an eligible employee at business, to the attention of the General Counsel, or such other address as either party may specify in writing. 21. Participation Notices. The Plan Administrator shall have the authority, in its sole discretion, to select employees to participate in the Plan and to provide written notice to any such employee that the employee is a Covered Employee in, and eligible to receive severance benefits under, the Plan (a Participation Notice 22. Claw-Back Provisions. All payments and benefits pursuant to the Plan shall be subject to the provisions of any claw-back policy implemented by the Company, including, without limitation, any claw-back policy adopted to comply with applicable law and the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations promulgated thereunder, to the extent set forth in such claw-back policy.

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Exhibit 10.2 Appendix A-2-1 APPENDIX A-1 Release of Claims [FOR EMPLOYEES 40 AND OVER] [The Release of Claims is subject to revision by the Company based on changes in applicable law or local law requirements based on determined by the Plan Administrator, in its sole discretion.] This Release of Claims (Release) is entered into as of __________, 20__, between [__________] (Employee) and GATX Corporation, a Delaware corporation (the Company and, together with Employee, the Parties Effective Date), d), below. WHEREAS, Employee is a participant in the GATX Corporation U.S. Executive Severance Plan (the Severance Plan). NOW, THEREFORE, in consideration of the applicable severance benefits under the Severance execution and non-revocation of this Release, the Parties agree as follows: 1. . Employee agrees not to sue, or otherwise file any claim against, the Company or its parent companies, subsidiaries or affiliates, and any of their respective successors, assigns, directors, officers, managers, employees, attorneys, insurers, or agents, each in their respective capacities as such (collectively, the Company Parties), for any reason whatsoever based on anything that has occurred at any time up to and including the execution date of this Release as follows: (a) and assigns, Employee hereby releases and forever discharge the Company Parties, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called Claims), which Employee now have or may hereafter have against any of the Company Parties by reason of any matter, cause, or thing whatsoever from the beginning of time through and including the execution date of this Release, including, without limiting the generality of the foregoing: any Claims arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever without limitation any and all Claims arising under federal, state, or local laws relating to employment; any Claims of any kind that may be brought in any court or administrative agency; any Claims arising under the Age Discrimination in Employment Act, the Older Workers Benefits Protection Act, the Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Equal Pay Act, the Civil Rights Act of 1866, Section 1981, 42 U.S.C. § 1981, the Family and Medical Leave Act of 1993, the Americans with Disabilities Act of 1990, the False Claims Act, the Employee Retirement Income Security Act, the Worker Adjustment and Retraining Notification Act, the Fair Labor Standards Act, the Sarbanes-Oxley Act of 2002, the National Labor Relations Act of 1935, the Uniformed Services Employment and Reemployment Rights Act of 1994, Fair Credit Reporting Act, or any similar state law, each of the foregoing as may have been amended, and any other federal, state, or local statute, regulation, ordinance, constitution, or order concerning labor or employment, termination of labor or employment, wages and benefits, retaliation, leaves of absence, or any other term or condition of employment; Claims for breach of contract; Claims for unfair business practices; Claims arising in tort, including, without limitation, Claims of

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Appendix A-1-2 wrongful dismissal or discharge, discrimination, harassment, retaliation, fraud, misrepresentation, defamation, libel, infliction of emotional distress, violation of public policy, and/or breach of the implied covenant of good faith and fair dealing; and Claims for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and (b) Notwithstanding the generality of the foregoing, Employee does not release any Claims that cannot be released as a matter of law including, without limitation, (i) interference with leave rights, failure to accommodate, or retaliation with the Equal Employment Opportunity Commission or any other federal, state or local government agency, or to cooperate with or participate in any investigation conducted by such agency; provided, however, that proceeding brought by Employee v Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, the U.S. Department of Justice or similar agency, or to cooperate with or participate in any investigation by whistleblower provisions of applicable law. For the avoidance of doubt, Employee does not need to notify or obtain the prior authorization of the Company to exercise any of the foregoing rights. Furthermore, Employee does not release hereby any rights that Employee may have relating to (i) indemnification by the Company or its affiliates under any indemnification agreement with the s and compensation plans; and (iii) any severance benefits to which Employee is specifically entitled as of the date of termination pursuant to the Severance Plan. (c) EMPLOYEE ACKNOWLEDGES THAT HE HAS BEEN ADVISED OF AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY, AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY. BEING AWARE OF SAID CODE SECTION, EMPLOYEE HEREBY EXPRESSLY WAIVES ANY RIGHTS HE OR SHE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT. (d) Employee acknowledges that the General Release of Claims set forth in Section 1(a) above includes a release of Claims under the Age Discrimination in Employment Act (the ADEA Release). In accordance with the Older Workers Benefit Protection Act, Employee acknowledges as follows: (i) choice before signing this Release and Employee either has so consulted with counsel or voluntarily decided not to consult with counsel;

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Appendix A-1-3 (ii) Employee has been granted [twenty-one (21)] [forty-five (45)]1 days after Employee is presented with this Release to decide whether or not to sign it. Employee agrees that such period shall not be extended due to any material or immaterial changes to the Release. If Employee executes this Release prior to the expiration of such period, Employee does so voluntarily and after having had the opportunity to consult with an attorney, and hereby waive the remainder of the [twenty-one (21)] [forty-five (45)] day period; (iii) Employee has carefully reviewed and considered and fully understand the terms set forth in this Release, including all exhibits hereto; (iv) [Employee understands that Attachment 1 to this Release is a list of the job titles and ages for all indiv who have not been selected for the program, as of [_____], the date the Company provided this Release to Employee;]2 and (v) to so revoke to [Insert Name], [____], GATX Corporation, at 233 South Wacker Drive, Chicago, Illinois 60606, on or before 5:00 p.m. on the seventh (7th) day after the date on which Employee signs this Release. (e) Employee acknowledges that Employee will not be entitled to the severance benefits under the Severance Plan unless this Release is effective within [____]3 days 2. Employee Representations. Employee represents and warrants that: (a) Employee has returned to the Company all Company property in Employee to keep following his or her Termination Date in writing), including without limitation, any cell phone, laptop computer or tablet; (b) Employee is not owed wages, commissions, bonuses or other compensation, other than wages through the Termination Date of Employee and any accrued, unused vacation or paid time off earned through such date, other than as set forth in the Severance Plan; (c) compensation law or Employee has disclosed any injuries of which Employee is currently, compensation law; and (d) Employee has not initiated any adversarial proceedings of any kind against the Company or its affiliates or, in their capacities as such, against any other person or entity 1 NTD: To be 45 days for a group termination and 21 days for a non-group termination. 2 NTD: To be included for group termination. 3 NTD: To be 55 days for a group termination and 30 days for a non-group termination.

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Appendix A-1-4 released herein, nor will Employee do so in the future, except as specifically allowed by this Release. 3. Restrictive Covenants; Cooperation continuing obligations under Section 16 of the Plan. In addition, Employee shall cooperate with the Company and its administrative, regulatory or judicial pr (including, without limitation, Employee being available to the Company upon reasonable notice for without requiring service of a subpoena or other legal process, and turning over to the Company all relevant Company documents which are or may h employment); provided, however, that any such request by the Company shall not be unduly burdensome or ability to engage in gainful employment. 4. WARN Offset. Without limiting Section 4 of the Severance Plan, Employee acknowledges and agrees that, unless otherwise determined by the Plan Administrator (as defined in ced, in whole or in part, by any other severance benefits, pay in lieu of notice, or other similar benefits payable to Employee by the Participating Companies (as defined in the Severance Plan) that become of employment pursuant to any applicable legal requirement, including, without limitation, the Worker Adjustment and Retraining Notification Act or any similar state or local statute, rule or regulation. 5. Severability. The provisions of this Release are severable. If any provision is held to be invalid or unenforceable, it shall not affect the validity or enforceability of any other provision. 6. Choice of Law. This Release shall in all respects be governed and construed in accordance with the laws of the State of [____]4, including all matters of construction, validity and performance, without regard to conflicts of law principles. 7. Integration Clause entire agreement with regard to the separation of prior agreements as to those matters, whether oral or written. This Release may not be changed or modified, in whole or in part, except by an instrument in writing signed by Employee and a duly authorized officer or director of the Company. 8. Execution in Counterparts. This Release may be executed in counterparts with the same force and effectiveness as though executed in a single document. Facsimile signatures shall have the same force and effectiveness as original signatures. 9. Intent to be Bound. The Parties have carefully read this Release in its entirety; fully understand and agree to its terms and provisions; and intend and agree that it is final and binding on all Parties. (Signature Page Follows) 4

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Appendix A-1-5 IN WITNESS WHEREOF, and intending to be legally bound, the Parties have executed the foregoing on the dates shown below. EMPLOYEE GATX CORPORATION: Name: Name: Title: Title: Date: Date:

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Appendix A-1-6 [ATTACHMENT 1 TO APPENDIX A] [Older Worker Benefit Protection Act Disclosure] [To be included if applicable]

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Exhibit 10.2 Appendix A-2-1 APPENDIX A-2 Release of Claims [FOR EMPLOYEES UNDER 40] [The Release of Claims is subject to revision by the Company based on changes in applicable law or determined by the Plan Administrator, in its sole discretion.] This Release of Claims (Release) is entered into as of _________, 20__, between [__________] (Employee) and GATX Corporation, a Delaware corporation (the Company and, together with Employee, the Parties Effective Date). WHEREAS, Employee is a participant in the GATX Corporation U.S. Executive Severance Plan (the Severance Plan). NOW, THEREFORE, in consideration of the applicable severance benefits under the Severance xecution and non-revocation of this Release, the Parties agree as follows: 1. . Employee agrees not to sue, or otherwise file any claim against, the Company or its parent companies, subsidiaries or affiliates, and any of their respective successors, assigns, directors, officers, managers, employees, attorneys, insurers, or agents, each in their respective capacities as such (collectively, the Company Parties), for any reason whatsoever based on anything that has occurred at any time up to and including the execution date of this Release as follows: (a) and assigns, Employee hereby releases and forever discharge the Company Parties, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called Claims), which Employee now have or may hereafter have against any of the Company Parties by reason of any matter, cause, or thing whatsoever from the beginning of time through and including the execution date of this Release, including, without limiting the generality of the foregoing: any Claims arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever Employ without limitation any and all Claims arising under federal, state, or local laws relating to employment; any Claims of any kind that may be brought in any court or administrative agency; any Claims arising under the Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Equal Pay Act, the Civil Rights Act of 1866, Section 1981, 42 U.S.C. § 1981, the Family and Medical Leave Act of 1993, the Americans with Disabilities Act of 1990, the False Claims Act, the Employee Retirement Income Security Act, the Worker Adjustment and Retraining Notification Act, the Fair Labor Standards Act, the Sarbanes-Oxley Act of 2002, the National Labor Relations Act of 1935, the Uniformed Services Employment and Reemployment Rights Act of 1994, Fair Credit Reporting Act, or any similar state law, each of the foregoing as may have been amended, and any other federal, state, or local statute, regulation, ordinance, constitution, or order concerning labor or employment, termination of labor or employment, wages and benefits, retaliation, leaves of absence, or any other term or condition of employment; Claims for breach of contract; Claims for unfair business practices; Claims arising in tort, including, without limitation, Claims of wrongful dismissal or discharge, discrimination, harassment, retaliation, fraud, misrepresentation, defamation, libel, infliction of emotional distress, violation of public policy, and/or breach of the implied covenant of good faith and fair dealing; and Claims for damages or other remedies of any

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Appendix A-2-2 sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and (b) Notwithstanding the generality of the foregoing, Employee does not release any Claims that cannot be released as a matter of law including, without limitation, (i) benefits pursuant to the terms of app , interference with leave rights, failure to accommodate, or retaliation with the Equal Employment Opportunity Commission or any other federal, state or local government agency, or to cooperate with or participate in any investigation conducted by such agency; provided, however, that Employee v Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, the U.S. Department of Justice or similar agency, or to cooperate with or participate in any investigation by whistleblower provisions of applicable law. For the avoidance of doubt, Employee does not need to notify or obtain the prior authorization of the Company to exercise any of the foregoing rights. Furthermore, Employee does not release hereby any rights that Employee may have relating to (i) indemnification by the Company or its affiliates under any indemnification agreement with the ii) any severance benefits to which Employee is specifically entitled as of the date of termination pursuant to the Severance Plan. (c) EMPLOYEE ACKNOWLEDGES THAT HE HAS BEEN ADVISED OF AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY, AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY. BEING AWARE OF SAID CODE SECTION, EMPLOYEE HEREBY EXPRESSLY WAIVES ANY RIGHTS HE OR SHE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT. (d) Employee acknowledges that Employee will not be entitled to the severance benefits under the Severance Plan unless this Release is effective within ten (10) days 2. Employee Representations. Employee represents and warrants that: (a) Employee has returned to the Company all Company property in Employee to keep following his or her Termination Date in writing), including without limitation, any cell phone, laptop computer or tablet;

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Appendix A-2-3 (b) Employee is not owed wages, commissions, bonuses or other compensation, other than wages through the Termination Date of Employee and any accrued, unused vacation or paid time off earned through such date, other than as set forth in the Severance Plan; (c) compensation law or Employee has disclosed any injuries of which Employee is currently, reasonably compensation law; and (d) Employee has not initiated any adversarial proceedings of any kind against the Company or its affiliates or, in their capacities as such, against any other person or entity released herein, nor will Employee do so in the future, except as specifically allowed by this Release. 3. Restrictive Covenants; Cooperation obligations under Section 16 of the Plan. In addition, Employee shall cooperate with the Company and its a (including, without limitation, Employee being available to the Company upon reasonable notice for interviews and factual investigations, appearing at the Co without requiring service of a subpoena or other legal process, and turning over to the Company all relevant employment); provided, however, that any such request by the Company shall not be unduly burdensome or ability to engage in gainful employment. 4. WARN Offset. Without limiting Section 4 of the Severance Plan, Employee acknowledges and agrees that, unless otherwise determined by the Plan Administrator (as defined in in whole or in part, by any other severance benefits, pay in lieu of notice, or other similar benefits payable to Employee by the Participating Companies (as defined in the Severance Plan) that become requirement, including, without limitation, the Worker Adjustment and Retraining Notification Act or any similar state or local statute, rule or regulation. 5. Severability. The provisions of this Release are severable. If any provision is held to be invalid or unenforceable, it shall not affect the validity or enforceability of any other provision. 6. Choice of Law. This Release shall in all respects be governed and construed in accordance with the laws of the State of [____]5, including all matters of construction, validity and performance, without regard to conflicts of law principles. 7. Integration Clause prior agreements as to those matters, whether oral or written. This Release may not be changed or modified, in whole or in part, except by an instrument in writing signed by Employee and a duly authorized officer or director of the Company. 8. Execution in Counterparts. This Release may be executed in counterparts with the 5

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Appendix A-2-4 same force and effectiveness as though executed in a single document. Facsimile signatures shall have the same force and effectiveness as original signatures. 9. Intent to be Bound. The Parties have carefully read this Release in its entirety; fully understand and agree to its terms and provisions; and intend and agree that it is final and binding on all Parties. (Signature Page Follows)

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![](exhibit102-xgatxxusexecu026.jpg)

Appendix A-2-5 IN WITNESS WHEREOF, and intending to be legally bound, the Parties have executed the foregoing on the dates shown below. EMPLOYEE GATX CORPORATION: Name: Name: Title: Title: Date: Date:

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Exhibit 10.2 Appendix B-1 APPENDIX B Qualifying Termination Severance Benefits Severance Employment Band Severance Period (months of base pay) Bonus Amount Benefits Continuation Tier 1 CEO 24 months 2.0x Target Bonus 24 months Tier 2 Executive Vice President 18 months 1.5x Target Bonus 18 months Tier 3 Senior Vice President 12 months 1.0x Target Bonus 12 months

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Appendix C-1 APPENDIX C Change in Control Qualifying Termination Severance Benefits Severance Employment Band Severance Period (months of base pay) Bonus Amount Benefits Continuation Tier 1 CEO 36 months 3.0x Target Bonus 36 months Tier 2 Executive Vice President 24 months 2.0x Target Bonus 24 months Tier 3 Senior Vice President 18 months 1.5x Target Bonus 18 months

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Appendix E-1 APPENDIX D Individual CIC Agreements All Existing Executive COC Agreements listed below by name and agreement effective dates Officer Name Agreement Effective Date Robert C. Lyons 1/1/2009 Thomas A. Ellman 1/1/2014 Paul F. Titterton 8/1/2022 Meredith Nero 5/1/2021 Brian Glassberg 12/1/2022 Robert A. Zmudka 8/9/2018 Adeniyi Adedoyin 1/29/2016 Jeffery R. Young 2/1/2015 Jennifer McManus 10/30/2020 Jennifer Van Aken 10/30/2020

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Appendix E-2 APPENDIX E Detailed Claims Procedures Claims Procedure Claims for benefits under the Plan shall be administered in accordance with Section 503 of ERISA and the Department of Labor Regulations thereunder. The Plan Administrator shall make all determinations as to the rights of any participant or other person who makes a claim for benefits under the Plan (a Claimant). A Claimant may authorize a representative to act on his or her behalf with respect to any claim under the Plan. Initial Claims All claims shall be presented to the Plan Administrator in writing at the address in Appendix F. The deadline to submit a claim is described in Section 8, subject to the temporary extension of deadlines described below. If a claim is not timely submitted, it shall be treated as having been irrevocably waived. Claims Decisions Within ninety (90) days after receiving a claim, a claims official appointed by the Plan Administrator shall consider the claim and issue his or her determination thereon in writing. If the Plan Administrator or claims official determines that an extension of time is necessary, the claims official may extend the determination period for up to an additional ninety (90) days by giving the Claimant written notice indicating the special circumstances requiring the extension of time prior to the termination of the initial ninety (90) day period and the date by which the Plan Administrator expects to render a decision. If the claim is granted, the benefits or relief the Claimant seeks shall be provided. If the claim is wholly or partially denied, the claims official shall provide the Claimant with written notice of the denial, setting forth, in a manner calculated to be understood by the Claimant: (1) the specific reason or reasons for the denial; (2) specific references to the Plan provisions on which the denial is based; (3) a description of any additional material or information necessary for the Claimant to perfect the claim, together with an explanation of why the material or information is necessary; and (4) an explanation of the procedures for appealing denied claims and time limits applicable to such procedures, including a statement of the determination upon appeal. If the Claimant can establish that the claims official has failed to respond to the claim in a timely manner, the Claimant may treat the claim as having been denied by the claims official. Appeals of Denied Claims Each Claimant shall have the opportuni appeals shall be presented to the Plan Administrator in writing at the address in Appendix F. The appeal will be reviewed by the Plan Administrator or its designee (the appeals official). A Claimant must appeal a denied claim within sixty (60) days after receipt of written notice of denial of the claim, or within sixty (60) days after it was due if the Claimant did not receive it by its due date, subject to the temporary extension of deadlines described in the paragraph below. The Claimant shall have the opportunity to submit written upon request and free of charge, reasonable The appeals official shall take into account during its review all comments, documents, records and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefits review. Any claims that the Claimant does not pursue

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Appendix E-3 in good faith through the appeals stage, such as by failing to file a timely appeal request, shall be treated as having been irrevocably waived. Temporary Extension of Deadlines to File Claims and Appeals The Employee Benefits Security Administration, Department of Labor, Internal Revenue Service and Department of the Treasury (the Agencies) issued COVID-19-related relief to temporarily extend the deadlines to file ERISA claims and appeals. Under this relief, the period from March 1, 2020 until sixty (60) days after the announced end of the national emergency (or such other date announced by the Agencies) will be disregarded in determining the deadlines for a Claimant to file claims and appeals under Section 8 and this Appendix E, provided, however, that no more than one (1) year will be disregarded in determining a given deadline. Appeals Decisions The decision by the appeals official shall be made not later than sixty (60) days after the written appeal is received by the Plan Administrator, however, if the appeals official determines that an extension of time is necessary, the appeals official may extend the determination period for up to an additional sixty (60) days by giving the Claimant written notice prior to the termination of the initial sixty (60) day period indicating the special circumstances requiring the extension of time and the date by which a determination on appeal is expected to be rendered. However, if the appeals official is a committee that meets at least quarterly, then the decision by the appeals official shall be made not la receipt of an appeal request, unless the appeal request is filed within thirty (30) days preceding the date of such meeting. In such case, a benefit determination may be made by no later than the date of the second extension of time for processing, a benefit determination shall be rendered no later than the third meeting of the appeals o review is required, the appeals official shall provide the Claimant with written notice of the extension, describing the special circumstances and the date as of which the benefit determination will be made, prior to the commencement of the extension. The appeals official shall notify the Claimant of the benefit determination as soon as possible but not later than five (5) days after it has been made. The appeal decision shall be in writing, shall be set forth in a manner calculated to be understood by the Claimant and shall include the following: (1) the specific reason or reasons for the denial; (2) specific references to the Plan provisions on which the denial is based; (3) a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and ht to bring an action under Section 502(a) of ERISA. If a Claimant does not receive the appeal decision by the date it is due, the Claimant may deem the appeal to have been denied. Subject to applicable law, any decision made in accordance with the claims procedures in this Appendix E is final and binding on all parties and shall be given the maximum possible deference allowed by law. Procedures The Plan Administrator shall adopt procedures by which initial claims shall be considered and appeals shall be resolved; different procedures may be established for different claims. All procedures shall be designed to afford a Claimant full and fair consideration of his or her claim and appeal.

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Appendix E-4 Exhaustion; Judicial Proceedings No action at law or in equity shall be brought to recover benefits under the Plan until the claim and appeal rights described in the Plan have been exercised and the Plan benefits requested in such appeal have been denied in whole or in part. If any judicial proceeding is undertaken to appeal the denial of a claim, the evidence presented may be strictly limited to the evidence timely presented to the Plan Administrator and the appeals official. Any such judicial proceeding must be filed by the earlier of: (a) one year after the final decision regarding the appeal or (b) one year after the participant or other Claimant commenced payment of the Plan benefits at issue in the judicial proceeding.

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![](exhibit102-xgatxxusexecu033.jpg)

Appendix F APPENDIX F ADDITIONAL INFORMATION RIGHTS UNDER ERISA As a participant in the Plan, you are entitled to certain rights and protections under ERISA. ERISA provides that all Plan participants will be entitled to: Receive Information About Your Plan and Benefits 1. Plan, if any, and a copy of the latest annual report (Form 5500 Series) filed by the Plan with U.S. Department of Labor and available at the Public Disclosure Room of the Pension and Welfare Benefit Administration . 2. Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including copies of the latest annual report (Form 5500 Series) and updated summary plan description. The Plan Administrator may make a reasonable charge for the copies. 3. is required by law to furnish each participant with a copy of this summary annual report. Prudent Actions by Plan Fiduciaries In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your Plan, called fiduciaries of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including the Company, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your right under ERISA. Enforce Your Rights If your claim for a welfare benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of plan documents or the latest annual report from the Plan and do not receive them within thirty (30) days, you may file suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits, which is denied or ignored, in whole or in part, you s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. However, no legal action may be commenced or maintained against the Plan prior until after you exhaust the Plan's claims procedures, which are described in this summary plan description. If you file suit, the court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

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![](exhibit102-xgatxxusexecu034.jpg)

Appendix F Assistance with Your Questions If you have any questions about your Plan, you should contact the Plan Administrator. If you should have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N. W., Washington, D. C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. ADMINISTRATIVE INFORMATION Name of Plan: GATX Corporation U.S. Executive Severance Plan, Plan Sponsor: GATX Corporation 233 South Wacker Drive Chicago, Illinois 60606-7147 Tel: (312) 621-6200 Plan Administrator: GATX Corporation 233 South Wacker Drive Chicago, Illinois 60606-7147 Tel: (312) 621-6200 Type of Administration: Self-Administered Type of Plan: Severance Pay Employee Welfare Benefit Plan Employer Identification Number: 36-1124040 Direct Questions Regarding the Plan to: Chief Human Resources Officer GATX Corporation 233 South Wacker Drive Chicago, Illinois 60606-7147 Tel: (312) 621-6200 Agent for Service of Legal Process: GATX Corporation 233 South Wacker Drive Chicago, Illinois 60606-7147 Tel: (312) 621-6200 Service of Legal Process may also be made upon the Plan Administrator. Plan Year End: December 31 Plan Number: [511] Funding: The Plan is unfunded. Plan benefits are paid as needed from the general assets of the Company.

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## Ex-21

**Exhibit 21** 

**SUBSIDIARIES OF THE REGISTRANT** 

The following is a list of subsidiaries included in our consolidated financial statements and the state or country of incorporation of each:

---

| | |
|:---|:---|
| **Company Name** | **State or Country<br>of Incorporation** |
| GATX Terminals Overseas Holding Corporation (1) | &nbsp;&nbsp;&nbsp;&nbsp;Delaware |
| GATX Global Finance B.V. (1) | &nbsp;&nbsp;&nbsp;&nbsp; Netherlands |
| GATX Global Holding GmbH (1) | &nbsp;&nbsp;&nbsp;&nbsp;Switzerland |
| GATX Rail Europe BV (1) | &nbsp;&nbsp;&nbsp;&nbsp; Netherlands |
| GATX Rail Austria GmbH (1) | &nbsp;&nbsp;&nbsp;&nbsp;Austria |
| GATX Beteiligungs GmbH (1) | &nbsp;&nbsp;&nbsp;&nbsp;Germany |
| GATX Rail Germany GmbH (1)(2) | &nbsp;&nbsp;&nbsp;&nbsp;Germany |
| GATX International Limited (1)(2) | &nbsp;&nbsp;&nbsp;&nbsp;United Kingdom |
| GATX Engine Leasing Ltd. | United Kingdom |
| GATX Rail Poland Sp. z o.o. (2) | &nbsp;&nbsp;&nbsp;&nbsp;Poland |
| GATX Rail Canada Corporation | &nbsp;&nbsp;&nbsp;&nbsp;Canada |
| Trifleet Leasing Holding B.V. (3) | &nbsp;&nbsp;&nbsp;&nbsp; Netherlands |
| General American Transportation Holding Corp | &nbsp;&nbsp;&nbsp;&nbsp;Delaware |
| Grupo GATX de Mexico, Inc | &nbsp;&nbsp;&nbsp;&nbsp;Delaware |
| GATX de Mexico, Inc | &nbsp;&nbsp;&nbsp;&nbsp;Delaware |
| GATX Third Aircraft LLC (4) | &nbsp;&nbsp;&nbsp;&nbsp;Delaware |
| GATX Asia Investments Private Limited (5) | &nbsp;&nbsp;&nbsp;&nbsp;Singapore |
| GATX Rail Locomotive Group, LLC | &nbsp;&nbsp;&nbsp;&nbsp;Delaware |

---

_______

(1) Company is a significant subsidiary as defined in Rule 1-02(w) of Regulation S-X.

(2) Company includes one foreign subsidiary.

(3) Company includes six foreign subsidiaries.

(4) Company includes three domestic subsidiaries.

(5) Company includes seven foreign subsidiaries.

Certain subsidiaries which, if considered as a single subsidiary, would not constitute a "significant subsidiary" as defined in Regulation S-X, have been omitted.

## Ex-23

**Exhibit 23**

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the following Registration Statements:

&nbsp;&nbsp;&nbsp;&nbsp;1.Registration Statement (Form S-3 No. 333-264721) and related prospectus of GATX Corporation,

&nbsp;&nbsp;&nbsp;&nbsp;2.Registration Statement (Form S-8 No. 333-219346) pertaining to the Amended and Restated 2012 Incentive Award Plan,

&nbsp;&nbsp;&nbsp;&nbsp;3.Registration Statement (Form S-8 No. 333-182219) pertaining to the 2012 Incentive Award Plan,

&nbsp;&nbsp;&nbsp;&nbsp;4.Registration Statement (Form S-8 No. 333-145581) pertaining to the Salaried Employees Retirement Savings Plan, and

&nbsp;&nbsp;&nbsp;&nbsp;5.Registration Statement (Form S-8 No. 333-145583) pertaining to the Hourly Employees Retirement Savings Plan of GATX Corporation;

of our reports dated February 16, 2023, with respect to the consolidated financial statements of GATX Corporation, and the effectiveness of internal control over financial reporting of GATX Corporation included in this Annual Report (Form 10-K) of GATX Corporation for the year ended December 31, 2022.

/s/ Ernst & Young LLP

Chicago, Illinois

February 16, 2023

## Exhibit 31.1

**Exhibit 31.1**

**Certification of Principal Executive Officer**

I, Robert C. Lyons, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Annual Report on Form 10-K of GATX Corporation (the "Company");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

---

| |
|:---|
| /s/&nbsp;&nbsp;&nbsp;&nbsp;ROBERT C. LYONS |
| Robert C. Lyons |
| *President and Chief Executive Officer* |

---

February 16, 2023

## Exhibit 31.2

**Exhibit 31.2**

**Certification of Principal Financial Officer**

I, Thomas A. Ellman, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Annual Report on Form 10-K of GATX Corporation (the "Company");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter (the Company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

---

| |
|:---|
| /s/&nbsp;&nbsp;&nbsp;&nbsp;THOMAS A. ELLMAN |
| Thomas A. Ellman |
| *Executive Vice President and Chief Financial Officer* |

---

February 16, 2023

## Ex-32

**Exhibit 32**

**GATX CORPORATION AND SUBSIDIARIES**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with this Annual Report of GATX Corporation (the "Company") on Form 10-K for the period ended December 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), each of the undersigned officers of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| /s/&nbsp;&nbsp;&nbsp;&nbsp;ROBERT C. LYONS | /s/&nbsp;&nbsp;&nbsp;&nbsp;THOMAS A. ELLMAN |
| Robert C. Lyons | Thomas A. Ellman |
| *President and Chief Executive Officer* | *Executive Vice President and Chief Financial Officer* |

---

February 16, 2023

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by GATX Corporation for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to GATX Corporation and will be retained by GATX Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

<br>