(13) Segment and Geographic Information

The Company organizes itself by the nature of the services it provides which includes equipment leasing (consisting of container leasing and rail leasing) and logistics.

The container leasing segment is aggregated with equipment management and derives its revenue from the ownership and leasing of containers and fees earned for managing container portfolios on behalf of third party investors. The rail leasing segment derives its revenue from the ownership and leasing of railcars. The logistics segment derives its revenue from the provision of logistics services. There are no inter-segment revenues.

With the exception of administrative expenses, operating expenses are directly attributable to each segment. Administrative expenses that are not directly attributable to a segment are allocated to container or rail leasing based on the net book value of equipment in each segment.

CAI INTERNATIONAL, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

The following tables show condensed segment information for the three months ended March 31, 2018 and 2017, reconciled to the Company’s income before income taxes as shown in its consolidated statements of income for such periods (in thousands):


	Three Months Ended March 31, 2018
	Container Leasing		Rail Leasing		Logistics		Total
Total revenue	$	64,634	$	9,104	$	21,636	$	95,374
Total operating expenses		31,349		6,906		22,403		60,658
Operating income (loss)		33,285		2,198		(767)		34,716
Total other expenses (income)		13,322		3,545		(3)		16,864
Income (loss) before income taxes	$	19,963	$	(1,347)	$	(764)	$	17,852
Goodwill	$	-	$	-	$	15,794	$	15,794
Total assets	$	2,056,550	$	458,412	$	40,169	$	2,555,131
Purchase of rental equipment (1)	$	77,116	$	35,647	$	-	$	112,763


	Three Months Ended March 31, 2017
	Container Leasing		Rail Leasing		Logistics		Total
Total revenue	$	52,954	$	8,053	$	20,499	$	81,506
Total operating expenses		37,284		5,129		21,142		63,555
Operating income (loss)		15,670		2,924		(643)		17,951
Total other expenses		9,414		2,571		1		11,986
Income (loss) before income taxes	$	6,256	$	353	$	(644)	$	5,965
Goodwill	$	-	$	-	$	15,794	$	15,794
Total assets	$	1,643,211	$	385,958	$	39,141	$	2,068,310
Purchase of rental equipment (1)	$	37,494	$	10,622	$	-	$	48,116

(1) Represents cash disbursements for purchasing of rental equipment as reflected in the consolidated statements of cash flows for the periods indicated.

Geographic Data

The Company earns its revenue primarily from intermodal containers which are deployed by its customers in a wide variety of global trade routes. Virtually all of the Company’s containers are used internationally and typically no container is domiciled in one particular place for a prolonged period of time. As such, substantially all of the Company’s long-lived assets are considered to be international, with no single country of use.

The Company’s railcars, with a net book value of $449.7 million as of March 31, 2018, are used primarily to transport cargo within North America.

The following table represents the geographic allocation of revenue for the periods indicated based on customers’ primary domicile (in thousands):



	Three Months Ended March 31,
	2018		2017
United States	$	32,572	$	30,510
Switzerland		11,104		5,492
France		8,917		8,424
Korea		6,407		3,768
Singapore		5,316		4,312
Other Asia		16,034		15,779
Other Europe		12,483		9,813
Other International		2,541		3,408
Total revenue	$	95,374	$	81,506