Segment and Geographic Area Information (Notes)

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Information

SEGMENT AND GEOGRAPHIC AREA INFORMATION:

Segment Information

The Company’s various railroad lines are divided into 11 operating regions. Since all of the regions have similar characteristics, they previously had been aggregated into one reportable segment. Beginning January 1, 2011, the Company decided to present its financial information as two reportable segments, North American & European Operations and Australian Operations.

The results of operations of the foreign entities are maintained in the respective local currency (the Australian dollar, the Canadian dollar and the Euro) and then translated into United States dollars at the applicable exchange rates for inclusion in the consolidated financial statements. As a result, any appreciation or depreciation of these currencies against the United States dollar will impact our results of operations.

The Company acquired RailAmerica on October 1, 2012. However, the shares of RailAmerica were held in a voting trust while the STB considered the Company's control application, which application was approved with an effective date of December 28, 2012. Accordingly, the Company accounted for the earnings of RailAmerica using the equity method of accounting while the shares were held in the voting trust and the Company's preliminary allocation of the purchase price to the acquired assets and assumed liabilities is included in its consolidated balance sheet at December 31, 2012 and included within the Company's North American & European Operations segment.  

The following tables set forth our North American & European Operations and Australian Operations for the years ended December 31, 2012, 2011 and 2010 (dollars in thousands).

	December 31, 2012
	North American & European Operations			Australian Operations			Total Operations
Revenues	$	585,893		$	289,023		$	874,916
Income from operations	115,387			74,935			190,322
Depreciation and amortization	50,156			23,249			73,405
Interest expense	(45,996		)	(16,849		)	(62,845		)
Interest income	3,219			506			3,725
Provision for income taxes	(28,451		)	(17,951		)	(46,402		)
Contingent forward sale contract mark-to-market expense	(50,106		)	—			(50,106		)
Income from equity investment in RailAmerica, net	15,557			—			15,557
Expenditures for additions to property & equipment, net of grants from outside parties	(69,636		)	(122,426		)	(192,062		)

	December 31, 2011
	North American & European Operations			Australian Operations			Total Operations
Revenues	$	557,621		$	271,475		$	829,096
Income from operations	129,646			62,133			191,779
Depreciation and amortization	47,218			19,263			66,481
Interest expense	(23,171		)	(15,446		)	(38,617		)
Interest income	2,950			293			3,243
Provision for income taxes	(26,181		)	(12,350		)	(38,531		)
Expenditures for additions to property & equipment, net of grants from outside parties	(59,383		)	(96,643		)	(156,026		)

	December 31, 2010
	North American & European Operations			Australian Operations			Total Operations
Revenues	$	494,787		$	135,408		$	630,195
Income from operations	119,902			10,508			130,410
Depreciation and amortization	43,807			7,359			51,166
Interest expense	(21,856		)	(1,291		)	(23,147		)
Interest income	485			1,912			2,397
Provision for income taxes	(27,176		)	(2,988		)	(30,164		)
Expenditures for additions to property & equipment, net of grants from outside parties	(59,153		)	(19,885		)	(79,038		)

The following table sets forth the property and equipment recorded in the consolidated balance sheets as of December 31, 2012 and 2011 (dollars in thousands):

	December 31, 2012						December 31, 2011
	North American & European Operations		Australian Operations		Total Operations		North American & European Operations		Australian Operations		Total Operations
Property & equipment	$	2,766,693	$	629,602	$	3,396,295	$	1,120,121	$	523,468	$	1,643,589

Geographic Area Information

Operating revenues for each geographic area for the years ended December 31, 2012, 2011 and 2010 were as follows (dollars in thousands):

	2012				2011				2010
	Amount		% of Total		Amount		% of Total		Amount		% of Total
Operating revenues:
United States	$	489,157	55.9	%	$	478,511	57.7	%	$	434,132	68.9	%
Non-United States:
Australia	289,023		33.0	%	271,475		32.7	%	135,408		21.5	%
Canada	81,948		9.4	%	64,155		7.8	%	49,580		7.9	%
Europe	14,788		1.7	%	14,955		1.8	%	11,075		1.7	%
Total Non-United States	385,759		44.1	%	350,585		42.3	%	196,063		31.1	%
Total operating revenues	$	874,916	100.0	%	$	829,096	100.0	%	$	630,195	100.0	%

Property and equipment for each geographic area as of December 31, 2012, 2011 and 2010 were as follows (dollars in thousands):

	2012				2011				2010
	Amount		% of Total		Amount		% of Total		Amount		% of Total
Property and equipment located in:
United States	$	2,487,782	73.2	%	$	993,665	60.5	%	$	892,295	61.8	%
Non-United States:
Australia	629,602		18.5	%	523,468		31.8	%	443,827		30.7	%
Canada	263,828		7.8	%	110,719		6.7	%	91,434		6.3	%
Europe	15,083		0.5	%	15,737		1.0	%	16,621		1.2	%
Total Non-United States	908,513		26.8	%	649,924		39.5	%	551,882		38.2	%
Total property and equipment	$	3,396,295	100.0	%	$	1,643,589	100.0	%	$	1,444,177	100.0	%