Segment and Geographic Area Information (Notes)

12 Months Ended

Dec. 31, 2016

Segments, Geographical Areas [Abstract]

Segment and Geographic Area Information

SEGMENT AND GEOGRAPHIC AREA INFORMATION:

Segment Information

The Company presents the financial results of its 10 operating regions as three reportable segments: North American Operations, Australian Operations and U.K./European Operations (as more fully described in Note 1, Business and Customers). Each of our segments generates the following three categories of revenues from external customers: freight revenues, freight-related revenues and all other revenues (as more fully described in Note 2, Significant Accounting Policies). The Company's eight North American regions are aggregated into one reportable 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 $8.2 million, including $6.5 million in our U.K./European Operations, $0.9 million in our North American Operations and $0.8 million in our Australian 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 years ended December 31, 2016, 2015 and 2014:

	2016		2015		2014
United States dollar per Australian dollar	$	0.74	$	0.75	$	0.90
United States dollar per British pound	$	1.36	$	1.53	$	1.65
United States dollar per Canadian dollar	$	0.76	$	0.78	$	0.91
United States dollar per Euro	$	1.11	$	1.11	$	1.33

The following tables set forth results from the Company's North American Operations segment, Australian Operations segment and U.K./European Operations segment for the years ended December 31, 2016, 2015 and 2014 (dollars in thousands):

	December 31, 2016
	North American Operations		Australian Operations		U.K./European Operations			Total Operations
Operating revenues:
Freight revenues	$	913,619	$	120,622	$	337,325		$	1,371,566
Freight-related revenues	258,922		95,776		181,661			536,359
All other revenues	64,223		6,188		23,191			93,602
Total operating revenues	$	1,236,764	$	222,586	$	542,177		$	2,001,527
Operating income/(loss)	$	319,551	$	4,810	$	(34,749	)	$	289,612
Depreciation and amortization	$	147,527	$	30,863	$	26,798		$	205,188
Interest expense, net	$	40,985	$	13,958	$	19,591		$	74,534
Provision for/(benefit from) income taxes	$	80,701	$	988	$	(7,294	)	$	74,395
Cash expenditures for additions to property & equipment, net of grants from outside parties	$	137,334	$	11,285	$	34,831		$	183,450

	December 31, 2015
	North American Operations		Australian Operations		U.K./European Operations			Total Operations
Operating revenues:
Freight revenues	$	949,028	$	146,850	$	304,669		$	1,400,547
Freight-related revenues	227,154		87,616		187,313			502,083
All other revenues	65,633		8,486		23,652			97,771
Total operating revenues	$	1,241,815	$	242,952	$	515,634		$	2,000,401
Operating income	$	297,486	$	54,842	$	31,933		$	384,261
Depreciation and amortization	$	141,814	$	27,425	$	19,296		$	188,535
Loss on settlement of foreign currency forward purchase contracts	$	16,374	$	2,312	$	—		$	18,686
Interest expense, net	$	39,651	$	8,976	$	17,965		$	66,592
Provision for/(benefit from) income taxes	$	69,552	$	12,890	$	(6,548	)	$	75,894
Cash expenditures for additions to property & equipment, net of grants from outside parties	$	266,548	$	31,179	$	32,035		$	329,762

	December 31, 2014
	North American Operations		Australian Operations		U.K./European Operations			Total Operations
Operating revenues:
Freight revenues	$	1,008,236	$	243,705	$	—		$	1,251,941
Freight-related revenues	214,388		55,461		20,938			290,787
All other revenues	82,137		14,104		43			96,284
Total operating revenues	$	1,304,761	$	313,270	$	20,981		$	1,639,012
Operating income/(loss)	$	333,194	$	90,396	$	(2,019	)	$	421,571
Depreciation and amortization	$	127,421	$	28,095	$	1,565		$	157,081
Interest expense, net	$	41,732	$	12,152	$	833		$	54,717
Provision for/(benefit from) income taxes	$	86,363	$	23,443	$	(2,699	)	$	107,107
Cash expenditures for additions to property & equipment, net of grants from outside parties	$	277,725	$	24,930	$	864		$	303,519

The following table sets forth the property and equipment recorded in the consolidated balance sheets as of December 31, 2016 and 2015 (dollars in thousands):

	December 31, 2016
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Property and equipment, net	$	3,590,625	$	634,148	$	278,546	$	4,503,319

	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

Geographic Area Information

Operating revenues for each geographic area for the years ended December 31, 2016, 2015 and 2014 were as follows (dollars in thousands):

	2016				2015				2014
	Amount		% of Total		Amount		% of Total		Amount		% of Total
Operating revenues:
United States	$	1,142,141	57.1	%	$	1,143,056	57.1	%	$	1,188,084	72.5	%
Non-United States:
Australia	$	222,586	11.1	%	$	242,952	12.1	%	$	313,270	19.1	%
Canada	94,623		4.7	%	98,759		5.0	%	116,677		7.1	%
U.K.	378,551		18.9	%	340,747		17.0	%	—		—	%
Netherlands	101,837		5.1	%	119,421		6.0	%	17,693		1.1	%
Other	61,789		3.1	%	55,466		2.8	%	3,288		0.2	%
Total Non-United States	$	859,386	42.9	%	$	857,345	42.9	%	$	450,928	27.5	%
Total operating revenues	$	2,001,527	100.0	%	$	2,000,401	100.0	%	$	1,639,012	100.0	%

Property and equipment for each geographic area as of December 31, 2016 and 2015 were as follows (dollars in thousands):

	2016				2015
	Amount		% of Total		Amount		% of Total
Property and equipment located in:
United States	$	3,353,296	74.4	%	$	3,202,963	76.0	%
Non-United States:
Australia	$	634,148	14.1	%	$	465,123	11.0	%
Canada	237,328		5.3	%	230,706		5.5	%
U.K.	264,954		5.9	%	303,210		7.2	%
Other	13,593		0.3	%	13,061		0.3	%
Total Non-United States	$	1,150,023	25.6	%	$	1,012,100	24.0	%
Total property and equipment, net	$	4,503,319	100.0	%	$	4,215,063	100.0	%