GATX CORP

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 quarter to quarter and year to year.

As of September 30, 2024, we had an unrestricted cash balance of $503.7 million. We also have a $600 million, 5-year unsecured revolving credit facility in the United States that matures in 2029 and a $350 million, 3-year unsecured revolving credit facility in the United States that matures in 2027, both of which were fully available as of September 30, 2024.

The following table shows our cash flows from operating, investing and financing activities for the nine months ended September 30 (in millions):

Net Cash Provided by Operating Activities

Net cash provided by operating activities for the nine months ended September 30, 2024 decreased $4.0 million compared to the same period in 2023. Comparability among reporting periods is impacted by the timing of changes in working capital items. Specifically, higher payments for interest, income taxes, maintenance, and other operating expenses were partially offset by higher cash receipts from revenue and lower payments for operating leases.

Net Cash Used in Investing Activities

The following table shows our principal sources and uses of cash flows from investing activities for the nine months ended September 30 (in millions):

(1) Portfolio investments and capital additions primarily consist of purchases of operating assets and capitalized asset improvements. See the discussions of segment operating results sections in this Item for more detail.

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

(3) Short-term U.S. Treasury Obligations with an original maturity date of over 90 days.

The increase in portfolio investments and capital additions of $87.6 million for the nine months ended September 30, 2024 was primarily due to more railcars and locomotives acquired at Rail North America, partially offset by fewer aircraft spare engines acquired at GEL, fewer railcars acquired at GRE and Rail India, and fewer tank containers acquired at Trifleet. The timing of investments depends on purchase commitments, transaction opportunities, and market conditions.

Portfolio proceeds decreased by $36.5 million for the nine months ended September 30, 2024, resulting from the absence of proceeds from the sales of two Specialized Gas Vessels at Engine Leasing and the sale of Rail Russia at Rail International in the prior year.

Net Cash Provided by Financing Activities

The following table shows our principal sources and uses of cash flows from financing activities for the nine months ended September 30 (in millions):

(1) In the nine months ended September 30, 2024, we purchased 728 railcars that were previously leased, compared to none during the same period in 2023.

(2) In the nine months ended September 30, 2024, we repurchased 166,400 shares of common stock for $21.8 million. We did not repurchase any shares of common stock during the same period in 2023.

The following table shows the activity on our long-term debt principal in the nine months ended September 30, 2024 (in millions):

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

(2) Denominated in Indian rupees, but presented in U.S. dollars in this table.

The following provides detail of the long-term debt issued during the nine months ended September 30, 2024:

U.S. debt

•$350.0 million of 3-year unsecured fixed rate debt at a 5.430% yield

•$200.0 million of 10-year unsecured fixed rate debt at a 5.700% yield

•$400.0 million of 30-year unsecured fixed rate debt at a 6.053% yield

Europe debt

•€121.0 million ($132.0 million) of 2-year unsecured floating rate debt at Trifleet, currently 4.97%*

•€50.0 million ($54.4 million) of 7-year unsecured floating rate debt at GRE, currently 5.015%*

•€75.0 million ($81.1 million) of 5-year unsecured floating rate debt at GRE, currently 5.359%*

•€35.0 million ($37.8 million) of 3-year unsecured fixed rate debt at GRE at a 4.371% yield

India debt

•INR 2.0 billion ($24.1 million) in two tranches from a 5-year delayed draw term loan at fixed rates of 8.43% and 8.55%

•INR 2.0 billion ($23.9 million) in two tranches from a separate 5-year delayed draw term loan at fixed rates of 8.88% and 8.51%

(*) Floating rates are based on the applicable interest rate as of September 30, 2024.