• The following factors, in addition to those discussed in our other filings with the SEC, including our Form 10-K for the year ended December 31, 2022, could cause actual results to differ materially from our current expectations expressed in forward-looking statements: 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

• 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

• 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

• 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

• a significant decline in customer demand for our transportation assets or services, including as a result of:

• weak macroeconomic conditions or increased interest rates

• weak market conditions in our customers' businesses

• adverse changes in the price of, or demand for, commodities

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

• changes in, or disruptions to, supply chains

• availability of pipelines, trucks, and other alternative modes of transportation

• changes in conditions affecting the aviation industry, including reduced demand for air travel, geographic exposure and customer concentrations

• other operational or commercial needs or decisions of our customers

• customers' desire to buy, rather than lease, our transportation assets

• 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

• events having an adverse impact on assets, customers, or regions where we have a concentrated investment exposure

• financial and operational risks associated with long-term purchase commitments for transportation assets

• reduced opportunities to generate asset remarketing income

• inability to successfully consummate and manage ongoing acquisition and divestiture activities

• 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

• fluctuations in foreign exchange rates

• prolonged inflation or deflation

• inability to attract, retain, and motivate qualified personnel, including key management personnel

• failure to successfully negotiate collective bargaining agreements with the unions representing a substantial portion of our employees

• asset impairment charges we may be required to recognize

• deterioration of conditions in the capital markets, reductions in our credit ratings, or increases in our financing costs

• competitive factors in our primary markets, including competitors with significantly lower costs of capital

• 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

• changes in, or failure to comply with, laws, rules, and regulations

• U.S. and global political conditions

• inability to obtain cost-effective insurance

• environmental liabilities and remediation costs

• potential obsolescence of our assets

• inadequate allowances to cover credit losses in our portfolio

• operational, functional and regulatory risks associated with climate change, severe weather events and natural disasters, and other environmental, social and governance matters

• inability to maintain and secure our information technology infrastructure from cybersecurity threats and related disruption of our business

• changes in assumptions, increases in funding requirements or investment losses in our pension and post-retirement plans

• inability to maintain effective internal control over financial reporting and disclosure controls and procedures

Net income (GAAP)

Adjustments attributable to consolidated pre-tax income:

Gain on sale of Rail Russia at Rail International (2)

Loss on Specialized Gas Vessels at Portfolio Management (3)

Total adjustments attributable to consolidated pre-tax income

Income taxes thereon, based on applicable effective tax rate

Other income tax adjustments attributable to consolidated income:

Income tax rate change (4)

Total other income tax adjustments attributable to consolidated income

Adjustments attributable to affiliates' earnings, net of taxes:

Aircraft spare engine impairment at RRPF (5)

Total adjustments attributable to affiliates' earnings, net of taxes

Net income, excluding tax adjustments and other items (non-GAAP)

Diluted earnings per share (GAAP)

Diluted earnings per share, excluding tax adjustments and other items (non-GAAP)

In addition to financial results reported in accordance with GAAP, we compute certain financial measures using non-GAAP components. Specifically, we exclude the effects of certain tax adjustments and other items for purposes of presenting net income and diluted earnings per share 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.

In the third quarter of 2022, we made the decision to exit our rail business in Russia ("Rail Russia). In the first quarter of 2023, we sold Rail Russia and recorded a gain on the final sale of this business.

In the second quarter of 2022, we made the decision to sell the Specialized Gas Vessels. In the first quarter of 2023, we recorded losses associated with these assets.

Deferred income tax adjustment due to an enacted corporate income tax rate reduction in Austria in 2022.

Impairment losses related to aircraft spare engines in Russia that RRPF does not expect to recover.

Rail North America

Rail International

Portfolio Management

Other

Total Assets, excluding cash and short-term investments

Unrestricted cash and short-term investments

Commercial paper and bank credit facilities

Recourse debt

Operating lease obligations

Total debt and lease obligations, net of unrestricted cash and short-term investments

Total recourse debt (1)

Shareholders’ Equity

Recourse Leverage (2)

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

Calculated as total recourse debt / shareholder's equity.

Total Assets

Less: cash and short-term investments

Average renewal lease rate change

Average renewal term (months)

Renewal Success Rate (2)

Fleet Rollforward (3)

Beginning balance

Cars added

Cars scrapped

Cars sold

Ending balance

Utilization

Average active railcars

Beginning balance

Cars added

Cars scrapped

Cars sold

Ending balance

Utilization

Average active railcars

Fleet Rollforward

Beginning balance

Cars added

Cars scrapped/sold

Ending balance

Utilization

Average active railcars

GATX's 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. GATX calculates the index using the weighted-average lease rate for a group of railcar types that GATX believes best represents its 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.

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.

Excludes boxcar fleet.

Manufacturing Capacity Utilization Index (1)

Year-over-year Change in U.S. Carloadings (excl. intermodal) (2)

Year-over-year Change in U.S. Carloadings (chemical) (2)

Year-over-year Change in U.S. Carloadings (petroleum) (2)

Production Backlog at Railcar Manufacturers (3)

As reported and revised by the Federal Reserve.

As reported by the Association of American Railroads (AAR).

As reported by the Railway Supply Institute (RSI).

Not available, not published as of the date of this release.