(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 consolidated balance sheets and the operations of the rail business have been reclassified as discontinued operations in the accompanying consolidated statements of income. 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 years ended December 31, 2019, 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):


	Year Ended December 31, 2019
	Container Leasing		Logistics		Total
Container lease revenue	$	298,853	$	-	$	298,853
Logistics revenue		-		117,687		117,687
Total revenue		298,853		117,687		416,540
Depreciation of rental equipment		111,917		-		111,917
Storage, handling and other expenses		17,533		-		17,533
Logistics transportation costs		-		104,109		104,109
Gain on sale of rental equipment		(4,402)		-		(4,402)
Administrative expenses		34,188		18,511		52,699
Total operating expenses		159,236		122,620		281,856
Operating income (loss)		139,617		(4,933)		134,684
Net interest expense (income)		79,174		(16)		79,158
Other expense		313				313
Total other expenses		79,487		(16)		79,471
Income (loss) before income taxes	$	60,130	$	(4,917)	$	55,213
Purchase of rental equipment (1)	$	316,857	$	-	$	316,857


	Year Ended December 31, 2018
	Container Leasing		Logistics		Total
Container lease revenue	$	284,924	$	-	$	284,924
Logistics revenue		-		111,471		111,471
Total revenue		284,924		111,471		396,395
Depreciation of rental equipment		107,109		-		107,109
Storage, handling and other expenses		8,853		-		8,853
Logistics transportation costs		-		97,170		97,170
Gain on sale of rental equipment		(9,886)		-		(9,886)
Administrative expenses		28,792		17,448		46,240
Total operating expenses		134,868		114,618		249,486
Operating income (loss)		150,056		(3,147)		146,909
Net interest expense		62,573		-		62,573
Other expense		677		-		677
Total other expenses		63,250		-		63,250
Income (loss) before income taxes	$	86,806	$	(3,147)	$	83,659
Purchase of rental equipment (1)	$	739,944	$	-	$	739,944


	Year Ended December 31, 2017
	Container Leasing		Logistics		Total
Container lease revenue	$	235,365	$	-	$	235,365
Logistics revenue		-		80,552		80,552
Total revenue		235,365		80,552		315,917
Depreciation of rental equipment		99,753		-		99,753
Storage, handling and other expenses		15,303		-		15,303
Logistics transportation costs		-		68,155		68,155
Gain on sale of rental equipment		(5,333)		-		(5,333)
Administrative expenses		24,570		15,018		39,588
Total operating expenses		134,293		83,173		217,466
Operating income (loss)		101,072		(2,621)		98,451
Net interest expense		41,815		-		41,815
Other expense		765		-		765
Total other expenses		42,580		-		42,580
Income (loss) before income taxes	$	58,492	$	(2,621)	$	55,871
Purchase of rental equipment (1)	$	432,212	$	-	$	432,212

(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):


	December 31,		December 31,
	2019		2018
Container leasing	$	2,565,828	$	2,506,279
Logistics (1)		42,478		45,951
Rail (2)		293,459		460,387
Total assets	$	2,901,765	$	3,012,617

(1)

Includes goodwill of $15.8 million as of December 31, 2019 and 2018.

(2)

Represents total assets related to discontinued operations, including assets held for sale of $284.5 million and $449.7 million as of December 31, 2019 and 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):


	Year Ended December 31,
	2019		2018		2017
United States	$	124,335	$	118,724	$	88,082
Switzerland		50,118		50,805		32,430
France		34,947		37,565		34,862
Korea		42,257		31,877		20,755
Singapore		41,626		26,854		19,856
Other Asia		58,349		67,695		64,097
Other Europe		63,141		54,677		45,176
Other International		1,767		8,198		10,659
Total revenue	$	416,540	$	396,395	$	315,917