Segment and Geographic Area Information (Notes)

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Information [Table Block]

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 the Company's 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 determination of fair values of the acquired assets and assumed liabilities were included in its consolidated balance sheets since December 28, 2012 and included within the Company's North American & European Operations segment.

The following tables set forth the Company's North American & European Operations and Australian Operations for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

	December 31, 2013
	North American & European Operations		Australian Operations		Total Operations
Operating revenues	$	1,243,847	$	325,164	$	1,569,011
Income from operations	$	284,122	$	96,066	$	380,188
Depreciation and amortization	$	114,542	$	27,102	$	141,644
Interest expense	$	52,740	$	15,154	$	67,894
Interest income	$	3,631	$	340	$	3,971
Provision for income taxes	$	24,038	$	22,258	$	46,296
Expenditures for additions to property & equipment, net of grants from outside parties	$	163,545	$	51,860	$	215,405

	December 31, 2012
	North American & European Operations		Australian Operations		Total Operations
Operating 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
Contingent forward sale contract mark-to-market expense	$	50,106	$	—	$	50,106
Provision for income taxes	$	28,451	$	17,951	$	46,402
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
Operating 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

The following table sets forth the property and equipment recorded in the consolidated balance sheets as of December 31, 2013 and 2012 (dollars in thousands):

	December 31, 2013						December 31, 2012
	North American & European Operations		Australian Operations		Total Operations		North American & European Operations		Australian Operations		Total Operations
Property & equipment, net	$	2,883,452	$	557,292	$	3,440,744	$	2,766,693	$	629,602	$	3,396,295

Geographic Area Information

Operating revenues for each geographic area for the years ended December 31, 2013, 2012 and 2011 were as follows (dollars in thousands):

	2013				2012				2011
	Amount		% of Total		Amount		% of Total		Amount		% of Total
Operating revenues:
United States	$	1,083,773	69.1	%	$	489,157	55.9	%	$	478,511	57.7	%
Non-United States:
Australia	$	325,164	20.7	%	$	289,023	33.0	%	$	271,475	32.7	%
Canada	145,399		9.3	%	81,948		9.4	%	64,155		7.8	%
Europe	14,675		0.9	%	14,788		1.7	%	14,955		1.8	%
Total Non-United States	$	485,238	30.9	%	$	385,759	44.1	%	$	350,585	42.3	%
Total operating revenues	$	1,569,011	100.0	%	$	874,916	100.0	%	$	829,096	100.0	%

Property and equipment for each geographic area as of December 31, 2013 and 2012 were as follows (dollars in thousands):

	2013				2012
	Amount		% of Total		Amount		% of Total
Property and equipment located in:
United States	$	2,602,640	75.7	%	$	2,487,782	73.2	%
Non-United States:
Australia	$	557,292	16.2	%	$	629,602	18.5	%
Canada	265,933		7.7	%	263,828		7.8	%
Europe	14,879		0.4	%	15,083		0.5	%
Total Non-United States	$	838,104	24.3	%	$	908,513	26.8	%
Total property and equipment, net	$	3,440,744	100.0	%	$	3,396,295	100.0	%