We evaluate our interests in other entities to determine whether those entities are variable interest entities ("VIEs") and whether we are the primary beneficiary of any such VIE in accordance with ASC Topic 810, Consolidation.

To determine if we are the primary beneficiary of a VIE, 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. If we determine we are the primary beneficiary of the VIE, we consolidate the entity in our financial statements. We evaluate new investments at inception and regularly review all existing entities for events that may affect our determination of whether an entity is a VIE and, if so, whether we are the primary beneficiary.

In 2025, GABX was formed by GATX and Brookfield with the objective to acquire the Wells Fargo railcar fleet. In December 2025, GABX was funded with equity contributions of $385.3 million and $899.0 million from GATX and Brookfield, respectively, and GABX executed a $2.96 billion term loan, guaranteed by GATX, in anticipation of closing the Wells Fargo transaction. On January 1, 2026, GABX acquired approximately 101,000 railcars for $4.2 billion from Wells Fargo, and GATX began serving as manager of the railcars for GABX. As of March 31, 2026, GATX ownership in GABX was 30%.

We evaluated our interests in GABX and determined that GABX is a VIE. We concluded that we are the primary beneficiary of GABX as we have the power to direct the activities that most significantly impact the economic performance of GABX over the course of the expected life of the entity, primarily through the management services agreement. As a result, we consolidate GABX in our financial statements.

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


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

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

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


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

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

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

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

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