Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment and Geographic Area Information

SEGMENT INFORMATION:

The Company presents the financial results of its 10 operating regions as three reportable segments: North American Operations, Australian Operations and U.K./European Operations. Each of the Company's segments generates the following three categories of revenues from external customers: freight revenues, freight-related revenues and all other revenues. The Company's eight North American regions are aggregated into one segment as a result of having similar economic and operating characteristics. During the second quarter of 2016, the Company's Ohio Valley Region railroads were consolidated into the Company's Northeast and Midwest regions. This consolidation reduced the Company's number of operating regions from 11 to 10.

During 2016, the Company incurred restructuring costs of $6.3 million for the nine months ended September 30, 2016, including $4.7 million in our U.K./European Operations, $0.8 million in our Australian Operations and $0.8 million in our North American Operations.

The results of operations of the foreign entities are maintained in the respective local currency (the Australian dollar, the British pound, 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 following table reflects the average exchange rates used to translate the foreign entities respective local currency results of operations into United States dollars for the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
United States dollar per Australian dollar	$	0.76	$	0.73	$	0.74	$	0.76
United States dollar per British pound	$	1.31	$	1.55	$	1.39	$	1.53
United States dollar per Canadian dollar	$	0.77	$	0.76	$	0.76	$	0.79
United States dollar per Euro	$	1.12	$	1.11	$	1.12	$	1.12

The following tables set forth selected financial data for the Company's reportable segments for the three and nine months ended September 30, 2016 and 2015 (dollars in thousands):

	Three Months Ended September 30, 2016
	North American Operations		Australian Operations		U.K./European Operations			Total Operations
Operating revenues:
Freight revenues	$	232,247	$	29,219	$	88,341		$	349,807
Freight-related revenues	62,124		23,523		43,873			129,520
All other revenues	15,823		1,408		4,444			21,675
Total operating revenues	$	310,194	$	54,150	$	136,658		$	501,002
Operating income	$	87,153	$	4,372	$	326		$	91,851
Depreciation and amortization	$	37,085	$	7,129	$	6,627		$	50,841
Interest expense, net	$	9,600	$	2,170	$	5,147		$	16,917
Provision for/(benefit from) income taxes	$	22,392	$	798	$	(3,547	)	$	19,643
Expenditures for additions to property & equipment, net of grants from outside parties	$	30,343	$	2,440	$	9,457		$	42,240

	Three Months Ended September 30, 2015
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Operating revenues:
Freight revenues	$	241,410	$	32,780	$	104,746	$	378,936
Freight-related revenues	56,823		26,206		62,479		145,508
All other revenues	16,330		2,027		3,498		21,855
Total operating revenues	$	314,563	$	61,013	$	170,723	$	546,299
Operating income	$	90,564	$	14,966	$	12,029	$	117,559
Depreciation and amortization	$	35,158	$	7,151	$	5,994	$	48,303
Interest expense, net	$	9,788	$	2,055	$	5,396	$	17,239
Provision for income taxes	$	32,333	$	3,896	$	626	$	36,855
Expenditures for additions to property & equipment, net of grants from outside parties	$	86,620	$	6,354	$	14,195	$	107,169

	Nine Months Ended September 30, 2016
	North American Operations		Australian Operations		U.K./European Operations			Total Operations
Operating revenues:
Freight revenues	$	681,154	$	80,390	$	255,459		$	1,017,003
Freight-related revenues	184,627		76,142		135,897			396,666
All other revenues	48,766		4,699		17,859			71,324
Total operating revenues	$	914,547	$	161,231	$	409,215		$	1,484,993
Operating income/(loss)	$	236,154	$	2,002	$	(2,115	)	$	236,041
Depreciation and amortization	$	110,398	$	21,018	$	19,679		$	151,095
Interest expense, net	$	29,730	$	6,963	$	15,529		$	52,222
Provision for/(benefit from) income taxes	$	59,354	$	521	$	(5,312	)	$	54,563
Expenditures for additions to property & equipment, net of grants from outside parties	$	95,282	$	8,094	$	26,195		$	129,571

	Nine Months Ended September 30, 2015
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Operating revenues:
Freight revenues	$	722,593	$	118,602	$	210,565	$	1,051,760
Freight-related revenues	170,473		62,243		128,808		361,524
All other revenues	50,101		6,918		15,245		72,264
Total operating revenues	$	943,167	$	187,763	$	354,618	$	1,485,548
Operating income	$	224,266	$	44,333	$	21,031	$	289,630
Depreciation and amortization	$	105,399	$	20,771	$	12,398	$	138,568
Interest expense, net	$	30,149	$	6,659	$	11,561	$	48,369
Loss on settlement of foreign currency forward purchase contracts	$	16,374	$	2,312	$	—	$	18,686
Provision for income taxes	$	71,559	$	10,653	$	805	$	83,017
Expenditures for additions to property & equipment, net of grants from outside parties	$	205,330	$	20,128	$	19,236	$	244,694

The following tables set forth the property and equipment recorded in the consolidated balance sheets for the Company's reportable segments as of September 30, 2016 and December 31, 2015 (dollars in thousands):

	September 30, 2016
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Property and equipment, net	$	3,457,892	$	461,023	$	290,668	$	4,209,583

	December 31, 2015
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Property and equipment, net	$	3,433,669	$	465,123	$	316,271	$	4,215,063