(17) 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.

As disclosed in Note 3, the Company’s railcar assets have been reclassified as held for sale in the accompanying unaudited consolidated balance sheets and the operations of the rail business have been reclassified as discontinued operations in the accompanying unaudited consolidated statements of operations. As a result, the Company will no longer report Rail leasing as a segment. The Company revised prior period information to conform to current period presentation.

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 logistics segment derives its revenue from the provision of logistics services. There are no material inter-segment revenues and operating expenses are directly attributable to each segment.

The following tables show condensed segment information for the three and nine months ended September 30, 2019 and 2018, reconciled to the Company’s income before income taxes as shown in its consolidated statements of operations for such periods (in thousands):


	Three Months Ended September 30, 2019
	Container Leasing		Logistics		Total
Total revenue	$	77,300	$	30,270	$	107,570
Operating expenses		39,668		30,679		70,347
Amortization of intangible assets		-		403		403
Total operating expenses		39,668		31,082		70,750
Operating income (loss)		37,632		(812)		36,820
Net interest and other expenses (income)		20,507		(4)		20,503
Income (loss) before income taxes	$	17,125	$	(808)	$	16,317
Purchase of rental equipment (1)	$	89,027	$	-	$	89,027


	Three Months Ended September 30, 2018
	Container Leasing		Logistics		Total
Total revenue	$	75,331	$	31,362	$	106,693
Operating expenses		32,985		33,608		66,593
Amortization of intangible assets		-		451		451
Total operating expenses		32,985		34,059		67,044
Operating income (loss)		42,346		(2,697)		39,649
Net interest and other expenses (income)		15,932		(5)		15,927
Income (loss) before income taxes	$	26,414	$	(2,692)	$	23,722
Purchase of rental equipment (1)	$	251,670	$	-	$	251,670


	Nine Months Ended September 30, 2019
	Container Leasing		Logistics		Total
Total revenue	$	228,585	$	87,788	$	316,373
Operating expenses		116,538		91,025		207,563
Amortization of intangible assets		-		1,208		1,208
Total operating expenses		116,538		92,233		208,771
Operating income (loss)		112,047		(4,445)		107,602
Net interest and other expenses (income)		60,598		(12)		60,586
Income (loss) before income taxes	$	51,449	$	(4,433)	$	47,016
Purchase of rental equipment (1)	$	256,469	$	-	$	256,469


	Nine Months Ended September 30, 2018
	Container Leasing		Logistics		Total
Total revenue	$	208,298	$	81,251	$	289,549
Operating expenses		96,129		83,603		179,732
Amortization of intangible assets		-		1,538		1,538
Total operating expenses		96,129		85,141		181,270
Operating income (loss)		112,169		(3,890)		108,279
Net interest and other expenses (income)		44,284		(16)		44,268
Income (loss) before income taxes	$	67,885	$	(3,874)	$	64,011
Purchase of rental equipment (1)	$	477,703	$	-	$	477,703

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

The summary below presents total assets for the Company's segments as of the dates indicated (in thousands):


	September 30, 2019		December 31, 2018
Container leasing	$	2,611,755	$	2,506,279
Logistics (2)		44,380		45,951
Rail (3)		294,599		460,387
Total assets	$	2,950,734	$	3,012,617

(2) Includes goodwill of $15.8 million as of September 30, 2019 and December 31, 2018.

(3) Represents total assets related to discontinued operations, including assets held for sale of $284.8 million and $449.7 million as of September 30, 2019 and December 31, 2018, respectively.

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



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
United States	$	31,887	$	33,162	$	92,840	$	86,706
Switzerland		13,837		13,929		41,712		36,246
Korea		10,807		8,707		31,361		21,927
Singapore		10,655		5,987		31,005		16,725
France		8,768		9,295		26,582		27,435
Other Asia		14,638		18,828		44,613		52,608
Other Europe		16,529		14,636		47,052		40,794
Other International		449		2,149		1,208		7,108
Total revenue	$	107,570	$	106,693	$	316,373	$	289,549