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Fair Value Disclosure (Tables) | 12 Months Ended
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Dec. 31, 2014
Fair Value Disclosures [Abstract] |
Assets and liabilities at fair value recurring basis | The following tables show our assets and liabilities that are measured at fair value on a recurring basis (in millions):
Assets | Total December 31, 2014 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Interest rate derivatives (1) | $ | 1.8 |  |  | $ | — |  |  | $ | 1.8 |  |  | $ | — |
Foreign exchange rate derivatives (2) | 9.7 |  |  | — |  |  | 9.7 |  |  | — |
Available-for-sale equity securities | 4.4 |  |  | 4.4 |  |  | — |  |  | — |
Liabilities |  |  |  |  |  |  |  |
Interest rate derivatives (1) | 5.9 |  |  | — |  |  | 5.9 |  |  | — |
Foreign exchange rate derivatives (2) | 1.6 |  |  | — |  |  | 1.6 |  |  | — |
Assets | Total December 31, 2013 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Interest rate derivatives (1) | $ | 6.0 |  |  | $ | — |  |  | $ | 6.0 |  |  | $ | — |
Available-for-sale equity securities | 4.7 |  |  | 4.7 |  |  | — |  |  | — |
Liabilities |  |  |  |  |  |  |
Interest rate derivatives (1) | 0.8 |  |  | — |  |  | 0.8 |  |  | — |
Interest rate derivatives (2) | 0.2 |  |  | — |  |  | 0.2 |  |  | — |
Foreign exchange rate derivatives (2) | 2.6 |  |  | — |  |  | 2.6 |  |  | — |
_________
(1) | Designated as hedges.
(2) | Not designated as hedges.
We base our valuations of available-for-sale equity securities on their quoted prices on an active exchange. We value derivatives using a pricing model with inputs (such as yield curves and credit spreads) that are observable in the market or that can be derived principally from observable market data.
Non-recurring Level 3 fair value measurements | The following table shows disclosures related to our non-recurring Level 3 fair value measurements (in millions):
| Fair Value of Assets |  | Impairment Losses
2014 |  |  |  |  |
Operating assets (1) | $ | 2.5 |  |  | $ | 0.7 |
2013 |  |  |  |  |
Operating assets (1) | 9.6 |  |  | 2.5 |
2012 |  |  |
Investment in affiliated companies (2) | 32.9 |  |  | 14.8 |
Operating assets (1) | 0.7 |  |  | 0.7 |
Impact of GATX's Derivative Instrument On Income Statement and Other comprehensive income (loss) | Derivative instruments Fair Value Hedges We use interest rate swaps to manage the fixed-to-floating rate mix of our debt obligations by converting the 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 eight instruments outstanding with an aggregate notional amount of $600.0 million as of December 31, 2014 and three instrument outstanding with an aggregate notional amount of $200.0 million as of December 31, 2013. These derivatives have maturities ranging from 2015 to 2020. Cash Flow Hedges We use interest rate swaps to convert floating rate debt to fixed rate debt. We use Treasury rate locks to hedge our exposure to interest rate risk on anticipated transactions. We also use currency swaps to hedge our exposure to fluctuations in the exchange rates of the foreign currencies in which we conduct business. We had seven instruments outstanding with an aggregate notional amount of $281.5 million as of December 31, 2014 and six instruments outstanding with an aggregate notional amount of $163.6 million as of December 31, 2013. These derivatives had maturities ranging from 2015 to 2020. Within the next 12 months, we expect to reclassify $6.0 million ($3.8 million after-tax) of net losses on previously terminated derivatives from accumulated other comprehensive income (loss). 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 (income) expense immediately. Some 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 with credit risk related contingent features that are in a liability position as of December 31, 2014 was $5.9 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 table shows the impacts of our derivative instruments on our statement of comprehensive income for the years ended December 31 (in millions):
Derivative Designation |  | Location of Loss (Gain) Recognized |  | 2014 |  | 2013 |  | 2012
Fair value hedges (1) |  | Interest expense |  | $ | 4.7 |  |  | $ | 4.9 |  |  | $ | 5.0 |
Cash flow hedges |  | Other comprehensive loss (effective portion) |  | 5.1 |  |  | (0.7 | ) |  | 0.2 |
Cash flow hedges |  | Interest expense (effective portion reclassified from accumulated other comprehensive loss) |  | 4.9 |  |  | 5.1 |  |  | 4.2 |
Cash flow hedges |  | Operating lease expense (effective portion reclassified from accumulated other comprehensive loss) |  | 3.2 |  |  | 1.5 |  |  | 1.4 |
Cash flow hedges |  | Other (income) expense (effective portion reclassified from accumulated other comprehensive loss) |  | (2.1 | ) |  | — |  |  | — |
Cash flow hedges |  | Other (income) expense (ineffective portion) |  | — |  |  | — |  |  | (0.1 | )
Non-designated (2) |  | Other (income) expense |  | (11.4 | ) |  | (0.6 | ) |  | 5.0 |
_________
(1) | The fair value adjustments related to the underlying debt equally offset the amounts recognized in interest expense.
(2) | For 2014, includes $10.4 million of gains on foreign currency derivatives which substantially offset losses from foreign currency remeasurement adjustments on the AAE loan, also recognized in other income.
Fair Value Other Financial Instruments | The following table shows the carrying amounts and fair values of our other financial instruments as of December 31 (in millions):
| 2014 |  | 2014 |  | 2013 |  | 2013
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Assets |  |  |  |  |  |  |
Investment funds | $ | 1.5 |  |  | $ | 2.4 |  |  | $ | 1.7 |  |  | $ | 4.0 |
Loans | 97.3 |  |  | 97.4 |  |  | 122.7 |  |  | 121.5 |
Liabilities |  |  |  |  |  |  |
Recourse fixed rate debt | $ | 3,639.9 |  |  | $ | 3,775.0 |  |  | $ | 2,871.2 |  |  | $ | 2,994.0 |
Recourse floating rate debt | 540.0 |  |  | 540.0 |  |  | 894.7 |  |  | 906.2 |
Nonrecourse debt | 15.9 |  |  | 16.6 |  |  | 72.6 |  |  | 74.7 |

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- Definition Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a,b,bb) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=36462937&loc=SL7498348-110258 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19296-110258 + Details
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- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13433-108611 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13476-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 + Details
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- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5618551-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624171-113959 + Details
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