(15) 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 years ended December 31, 2018, 2017 and 2016, reconciled to the Company’s income before income taxes and non-controlling interest as shown in its consolidated statements of income for such periods (in thousands):


	Year Ended December 31, 2018
	Container Leasing		Rail Leasing		Logistics		Total
Container lease revenue	$	284,924	$	-	$	-	$	284,924
Rail lease revenue		-		35,703		-		35,703
Logistics revenue		-		-		111,471		111,471
Total revenue		284,924		35,703		111,471		432,098
Depreciation of rental equipment		107,109		14,189		-		121,298
Storage, handling and other expenses		8,853		5,692		-		14,545
Logistics transportation costs		-		-		97,170		97,170
Gain on sale of used rental equipment		(9,886)		(1,839)		-		(11,725)
Administrative expenses		27,560		5,297		17,448		50,305
Total operating expenses		133,636		23,339		114,618		271,593
Operating income (loss)		151,288		12,364		(3,147)		160,505
Net interest expense		62,572		15,773		-		78,345
Other expense		677		-		-		677
Total other expenses		63,249		15,773		-		79,022
Income (loss) before income taxes	$	88,039	$	(3,409)	$	(3,147)	$	81,483
Goodwill	$	-	$	-	$	15,794	$	15,794
Total assets	$	2,506,279	$	460,387	$	45,951	$	3,012,617
Purchase of rental equipment (1)	$	739,944	$	72,077	$	-	$	812,021


	Year Ended December 31, 2017
	Container Leasing		Rail Leasing		Logistics		Total
Container lease revenue	$	235,365	$	-	$	-	$	235,365
Rail lease revenue		-		32,476		-		32,476
Logistics revenue		-		-		80,552		80,552
Total revenue		235,365		32,476		80,552		348,393
Depreciation of rental equipment		99,753		11,199		-		110,952
Storage, handling and other expenses		15,207		5,615		96		20,918
Logistics transportation costs		-		-		68,155		68,155
Gain on sale of used rental equipment		(5,333)		(14)		-		(5,347)
Administrative expenses		22,925		4,756		15,018		42,699
Total operating expenses		132,552		21,556		83,269		237,377
Operating income (loss)		102,813		10,920		(2,717)		111,016
Net interest expense		41,815		11,237		-		53,052
Other expense		765		-		-		765
Total other expenses		42,580		11,237		-		53,817
Income (loss) before income taxes	$	60,233	$	(317)	$	(2,717)	$	57,199
Goodwill	$	-	$	-	$	15,794	$	15,794
Total assets	$	1,938,723	$	449,376	$	40,029	$	2,428,128
Purchase of rental equipment (1)	$	445,168	$	56,882	$	-	$	502,050


	Year Ended December 31, 2016
	Container Leasing		Rail Leasing		Logistics		Total
Container lease revenue	$	202,328	$	-	$	-	$	202,328
Rail lease revenue		-		30,490		-		30,490
Logistics revenue		-		-		61,536		61,536
Total revenue		202,328		30,490		61,536		294,354
Depreciation of rental equipment		95,755		9,122		-		104,877
Storage, handling and other expenses		32,465		3,386		11		35,862
Logistics transportation costs		-		-		51,980		51,980
Loss (gain) on sale of used rental equipment		12,750		33		(112)		12,671
Administrative expenses		20,453		3,759		11,466		35,678
Total operating expenses		161,423		16,300		63,345		241,068
Operating income (loss)		40,905		14,190		(1,809)		53,286
Net interest expense		35,784		6,970		-		42,754
Other expense		654		-		-		654
Total other expenses		36,438		6,970		-		43,408
Income (loss) before income taxes and non-controlling interest	$	4,467	$	7,220	$	(1,809)	$	9,878
Purchase of rental equipment (1)	$	118,374	$	132,791	$	-	$	251,165

(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 $448.5 million as of December 31, 2018, are used 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):


	Year Ended December 31,
	2018		2017		2016
United States	$	154,427	$	120,558	$	99,824
Switzerland		50,805		32,430		19,636
France		37,565		34,862		29,273
Korea		31,877		20,755		14,904
Singapore		26,854		19,856		16,172
Other Asia		67,695		64,097		63,190
Other Europe		54,677		45,176		40,170
Other International		8,198		10,659		11,185
Total revenue	$	432,098	$	348,393	$	294,354