Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment and Geographic Area Information

SEGMENT INFORMATION:

The Company presents the financial results of its 10 operating regions as three distinct reportable segments: North American Operations, Australian Operations and U.K./European Operations. Each of the Company's segments generates the following three categories of revenues from external customers: freight revenues, freight-related revenues and all other revenues. The Company's eight North American regions are aggregated into one segment as a result of having similar economic and operating characteristics. During the second quarter of 2016, the Company's Ohio Valley Region railroads were consolidated into the Company's Northeast and Midwest regions. This consolidation reduced the Company's number of operating regions from 11 to 10.

During 2016, the Company incurred restructuring costs of $6.1 million for the six months ended June 30, 2016, including $4.7 million in our U.K./European Operations, $0.7 million in our Australian Operations and $0.7 million in our North American Operations.

The results of operations of the foreign entities are maintained in the respective local currency (the Australian dollar, the British pound, the Canadian dollar and the Euro) and then translated into United States dollars at the applicable exchange rates for inclusion in the consolidated financial statements. As a result, any appreciation or depreciation of these currencies against the United States dollar will impact the Company's results of operations.

The following table reflects the average exchange rates used to translate the foreign entities respective local currency results of operations into United States dollars for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
United States dollar per Australian dollar	$	0.75	$	0.78	$	0.73	$	0.78
United States dollar per British pound	$	1.44	$	1.53	$	1.43	$	1.52
United States dollar per Canadian dollar	$	0.78	$	0.81	$	0.75	$	0.81
United States dollar per Euro	$	1.13	$	1.11	$	1.12	$	1.12

The following tables set forth selected financial data for the Company's reportable segments for the three and six months ended June 30, 2016 and 2015 (dollars in thousands):

	Three Months Ended June 30, 2016
	North American Operations		Australian Operations		U.K./European Operations			Total Operations
Operating revenues:
Freight revenues	$	227,082	$	26,394	$	87,306		$	340,782
Freight-related revenues	60,978		27,129		45,581			133,688
All other revenues	16,515		1,760		8,630			26,905
Total operating revenues	$	304,575	$	55,283	$	141,517		$	501,375
Operating income/(loss)	$	79,023	$	9,381	$	(1,210	)	$	87,194
Depreciation and amortization	$	37,124	$	7,233	$	6,567		$	50,924
Interest expense, net	$	9,666	$	2,398	$	5,341		$	17,405
Provision for/(benefit from) income taxes	$	20,953	$	2,247	$	(1,088	)	$	22,112
Expenditures for additions to property & equipment, net of grants from outside parties	$	39,523	$	4,787	$	11,338		$	55,648

	Three Months Ended June 30, 2015
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Operating revenues:
Freight revenues	$	238,153	$	39,464	$	96,998	$	374,615
Freight-related revenues	55,589		25,173		57,129		137,891
All other revenues	17,238		2,171		10,304		29,713
Total operating revenues	$	310,980	$	66,808	$	164,431	$	542,219
Operating income	$	76,621	$	15,131	$	7,699	$	99,451
Depreciation and amortization	$	34,936	$	7,394	$	5,718	$	48,048
Interest expense, net	$	9,588	$	2,271	$	5,789	$	17,648
Provision for income taxes	$	24,939	$	3,829	$	532	$	29,300
Expenditures for additions to property & equipment, net of grants from outside parties	$	73,440	$	9,159	$	5,028	$	87,627

	Six Months Ended June 30, 2016
	North American Operations		Australian Operations			U.K./European Operations			Total Operations
Operating revenues:
Freight revenues	$	448,907	$	51,171		$	167,118		$	667,196
Freight-related revenues	122,503		52,619			92,024			267,146
All other revenues	32,943		3,291			13,415			49,649
Total operating revenues	$	604,353	$	107,081		$	272,557		$	983,991
Operating income/(loss)	$	149,001	$	(2,370	)	$	(2,441	)	$	144,190
Depreciation and amortization	$	73,313	$	13,889		$	13,052		$	100,254
Interest expense, net	$	20,130	$	4,793		$	10,382		$	35,305
Provision for/(benefit from) income taxes	$	36,962	$	(277	)	$	(1,765	)	$	34,920
Expenditures for additions to property & equipment, net of grants from outside parties	$	64,939	$	5,654		$	16,738		$	87,331

	Six Months Ended June 30, 2015
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Operating revenues:
Freight revenues	$	481,183	$	85,822	$	105,819	$	672,824
Freight-related revenues	113,650		36,037		66,329		216,016
All other revenues	33,771		4,891		11,747		50,409
Total operating revenues	$	628,604	$	126,750	$	183,895	$	939,249
Operating income	$	133,702	$	29,367	$	9,002	$	172,071
Depreciation and amortization	$	70,241	$	13,620	$	6,404	$	90,265
Interest expense, net	$	20,361	$	4,604	$	6,165	$	31,130
Loss on settlement of foreign currency forward purchase contracts	$	16,374	$	2,312	$	—	$	18,686
Provision for income taxes	$	39,226	$	6,757	$	179	$	46,162
Expenditures for additions to property & equipment, net of grants from outside parties	$	118,710	$	13,774	$	5,041	$	137,525

The following tables set forth the property and equipment recorded in the consolidated balance sheets for the Company's reportable segments as of June 30, 2016 and December 31, 2015 (dollars in thousands):

	June 30, 2016
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Property and equipment, net	$	3,462,559	$	452,455	$	293,692	$	4,208,706

	December 31, 2015
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Property and equipment, net	$	3,433,669	$	465,123	$	316,271	$	4,215,063