(14) 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 the segments based upon relative asset values or revenue.

The following tables show condensed segment information for the three and six months ended June 30, 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 June 30, 2018
	Container Leasing		Rail Leasing		Logistics		Total
Total revenue	$	68,333	$	9,119	$	28,253	$	105,705
Total operating expenses		31,081		6,026		28,679		65,786
Operating income (loss)		37,252		3,093		(426)		39,919
Net interest and other expenses (income)		15,031		3,846		(8)		18,869
Income (loss) before income taxes	$	22,221	$	(753)	$	(418)	$	21,050
Goodwill	$	-	$	-	$	15,794	$	15,794
Total assets	$	2,211,492	$	465,513	$	43,453	$	2,720,458
Purchase of rental equipment (1)	$	148,777	$	10,421	$	-	$	159,198


	Three Months Ended June 30, 2017
	Container Leasing		Rail Leasing		Logistics		Total
Total revenue	$	54,960	$	8,127	$	19,605	$	82,692
Total operating expenses		32,234		5,375		20,315		57,924
Operating income (loss)		22,726		2,752		(710)		24,768
Net interest and other expenses		9,395		2,778		-		12,173
Income (loss) before income taxes	$	13,331	$	(26)	$	(710)	$	12,595
Goodwill	$	-	$	-	$	15,794	$	15,794
Total assets	$	1,684,166	$	386,648	$	39,890	$	2,110,704
Purchase of rental equipment (1)	$	76,479	$	3,998	$	-	$	80,477


	Six Months Ended June 30, 2018
	Container Leasing		Rail Leasing		Logistics		Total
Total revenue	$	132,967	$	18,223	$	49,889	$	201,079
Total operating expenses		62,430		12,932		51,082		126,444
Operating income (loss)		70,537		5,291		(1,193)		74,635
Net interest and other expenses (income)		28,353		7,391		(11)		35,733
Income (loss) before income taxes	$	42,184	$	(2,100)	$	(1,182)	$	38,902
Purchase of rental equipment (1)	$	225,893	$	46,068	$	-	$	271,961


	Six Months Ended June 30, 2017
	Container Leasing		Rail Leasing		Logistics		Total
Total revenue	$	107,914	$	16,180	$	40,104	$	164,198
Total operating expenses		69,518		10,504		41,457		121,479
Operating income (loss)		38,396		5,676		(1,353)		42,719
Net interest and other expenses		18,809		5,349		1		24,159
Income (loss) before income taxes	$	19,587	$	327	$	(1,354)	$	18,560
Purchase of rental equipment (1)	$	113,973	$	14,620	$	-	$	128,593

(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 $457.0 million as of June 30, 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 June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
United States	$	39,195	$	29,567	$	71,767	$	60,077
Switzerland		11,213		6,413		22,317		11,905
France		9,223		8,238		18,140		16,662
Korea		6,813		4,497		13,220		8,265
Singapore		5,422		5,012		10,738		9,324
Other Asia		17,746		15,751		33,780		31,530
Other Europe		13,674		11,276		26,158		21,089
Other International		2,419		1,938		4,959		5,346
Total revenue	$	105,705	$	82,692	$	201,079	$	164,198