SEGMENT INFORMATION:

The Company presents the financial results of its nine operating regions as three reportable segments: North American Operations, Australian Operations and U.K./European Operations. The Company owns a 51.1% controlling interest in the Australian Operations. As such, the Company includes 100% of the revenues and expenses from its Australian Operations within its consolidated financial statements and reports a noncontrolling interest for MIRA’s 48.9% equity ownership. 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 seven North American regions are aggregated into one reportable segment as a result of having similar economic and operating characteristics.

The results of operations of the Company's 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 tables reflect the balance sheet exchange rates as of March 31, 2018 and December 31, 2017 and the average exchange rates for the three months ended March 31, 2018 and 2017 used to translate the foreign entities respective local currency balance sheet and results of operations into United States dollars for the respective period:



	March 31, 2018		December 31, 2017
United States dollar per Australian dollar	$	0.77	$	0.78
United States dollar per British pound	$	1.40	$	1.35
United States dollar per Canadian dollar	$	0.78	$	0.80
United States dollar per Euro	$	1.23	$	1.20

	Three Months Ended March 31,
	2018		2017
United States dollar per Australian dollar	$	0.79	$	0.76
United States dollar per British pound	$	1.39	$	1.24
United States dollar per Canadian dollar	$	0.79	$	0.76
United States dollar per Euro	$	1.23	$	1.07

The following tables set forth select financial data for the Company's reportable segments for the three months ended March 31, 2018 and 2017 (dollars in thousands):



	Three Months Ended March 31, 2018
	North American Operations			Australian Operations		U.K./European Operations			Total Operations
Operating revenues:
Freight revenues	$	245,417		$	63,011	$	91,211		$	399,639
Freight-related revenues	63,832			10,563		66,802			141,197
All other revenues	16,381			1,260		16,184			33,825
Total operating revenues	$	325,630		$	74,834	$	174,197		$	574,661
Operating income/(loss)	$	73,160		$	15,976	$	(2,223	)	$	86,913
Depreciation and amortization	$	40,631		$	16,007	$	9,352		$	65,990
Interest expense, net	$	8,455		$	13,241	$	3,042		$	24,738
(Benefit from)/provision for income taxes	$	(19,485	)	$	821	$	2,774		$	(15,890	)
Cash expenditures for additions to property & equipment, net of grants from outside parties	$	38,563		$	5,262	$	8,463		$	52,288



	Three Months Ended March 31, 2017
	North American Operations		Australian Operations		U.K./European Operations			Total Operations
Operating revenues:
Freight revenues	$	238,281	$	60,874	$	78,590		$	377,745
Freight-related revenues	65,345		11,709		42,283			119,337
All other revenues	15,850		1,324		4,852			22,026
Total operating revenues	$	319,476	$	73,907	$	125,725		$	519,108
Operating income/(loss)	$	67,663	$	17,159	$	(8,922	)	$	75,900
Depreciation and amortization	$	38,867	$	15,192	$	6,715		$	60,774
Interest expense, net	$	10,551	$	13,987	$	1,600		$	26,138
(Benefit from)/provision for income taxes	$	22,074	$	861	$	(1,007	)	$	21,928
Cash expenditures for additions to property & equipment, net of grants from outside parties	$	24,215	$	1,462	$	4,290		$	29,967

The following tables set forth select balance sheet data for the Company's reportable segments as of March 31, 2018 and December 31, 2017 (dollars in thousands):



	March 31, 2018
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Cash and cash equivalents	$	28,845	$	68,155	$	24,390	$	121,390
Property and equipment, net	$	3,641,579	$	650,934	$	348,311	$	4,640,824



	December 31, 2017
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Cash and cash equivalents	$	13,584	$	52,407	$	14,481	$	80,472
Property and equipment, net	$	3,657,801	$	664,367	$	334,753	$	4,656,921

As noted above, the Company owns a 51.1% controlling interest in the Australian Operations. In accordance with the Australia Partnership agreement, the cash and cash equivalents of the Company's Australian Operations can be used to make payments in the usual and regular course of business, to pay down debt of the Australia Partnership and to make distributions to the partners in proportion to their investments.