REVENUE:

The Company classifies its operating revenues into the following three categories: freight, freight-related and all other. Revenue is recognized when obligations under the terms of a contract with a customer are satisfied. Revenue is measured as the amount of consideration the Company expects to receive in exchange for providing services. Certain of the countries in which the Company operates have a tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction between a seller and a customer. The Company records these taxes on a net basis.

The Company generates freight revenues from the haulage of freight by rail based on a per car, per container or per ton basis. Freight revenues are recognized over time as shipments move from origin to destination as the customer simultaneously receives and consumes the benefit. Related expenses are recognized as incurred.

The Company generates freight-related revenues from port terminal railroad operations and industrial switching (where the Company operates trains on a contract basis in facilities it does not own), as well as demurrage, storage, car hire, trucking haulage services, track access rights, transloading, crewing services, traction service (or hook and pull service that requires the Company to provide locomotives and drivers to move a customer's train between specified origin and destination points), and other ancillary revenues related to the movement of freight. Freight-related revenues are recognized as services are performed or as contractual obligations are fulfilled.

The Company generates all other revenues from third-party railcar and locomotive repairs, container sales, property rentals and other ancillary revenues not directly related to the movement of freight. All other revenues are recognized as services are performed or as contractual obligations are fulfilled.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company’s contracts may have a single performance obligation or multiple performance obligations. Contracts with multiple obligations are evaluated to define the specific performance obligations to the customer. The Company typically allocates the standalone selling price adjusted for any applicable variable consideration to each performance obligation to determine the transaction price.

For interline traffic, one railroad typically invoices a customer on behalf of all railroads participating in the route. The invoicing railroad then pays the other railroads their portion of the total amount invoiced on a monthly basis. When the Company is the invoicing railroad, it is exposed to customer credit risk for the total amount invoiced and is required to pay the other railroads participating in the route even if the Company is not paid by the customer. The Company records revenue related to interline traffic that involves the services of another party or railroad on a net basis. The portion of the gross amount billed to customers that is remitted by the Company to another party is not reflected as revenue.

The timing of revenue recognition, billings and cash collections result in billed accounts receivables, contract assets (unbilled receivables) and contract liabilities. The Company’s contract assets and liabilities are typically short-term in nature, with terms settled within a 12-month period. The Company had no material contract assets or contract liabilities recorded on the consolidated balance sheet as of March 31, 2018.

Disaggregation of Revenue

The following tables set forth the Company's operating revenues by reportable segment and commodity group for the three months ended March 31, 2018 and 2017 (dollars in thousands) (prior period amounts have not been adjusted under the modified retrospective method):



	Three Months Ended March 31, 2018
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Freight Revenue by Commodity Group:
Agricultural Products	$	31,372	$	5,483	$	1,235	$	38,090
Autos & Auto Parts	5,367		—		—		5,367
Chemicals & Plastics	36,217		—		—		36,217
Coal & Coke	19,945		31,579		3,476		55,000
Food & Kindred Products	8,350		—		—		8,350
Intermodal	309		15,973		67,321		83,603
Lumber & Forest Products	22,439		—		—		22,439
Metallic Ores	3,573		7,731		—		11,304
Metals	28,394		—		—		28,394
Minerals & Stone	30,518		2,094		19,179		51,791
Petroleum Products	18,483		151		—		18,634
Pulp & Paper	28,871		—		—		28,871
Waste	5,888		—		—		5,888
Other	5,691		—		—		5,691
Total Freight Revenues	245,417		$	63,011	91,211		399,639
Freight-Related Revenues	63,832		10,563		66,802		141,197
All Other Revenues	16,381		1,260		16,184		33,825
Operating Revenues	$	325,630	$	74,834	$	174,197	$	574,661



	Three Months Ended March 31, 2017
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Freight Revenue by Commodity Group:
Agricultural Products	$	32,978	$	5,746	$	1,739	$	40,463
Autos & Auto Parts	5,210		—		—		5,210
Chemicals & Plastics	37,515		—		—		37,515
Coal & Coke	21,733		29,521		3,400		54,654
Food & Kindred Products	8,274		—		—		8,274
Intermodal	177		15,867		61,996		78,040
Lumber & Forest Products	20,376		—		—		20,376
Metallic Ores	3,896		7,631		—		11,527
Metals	26,594		—		—		26,594
Minerals & Stone	28,115		1,979		11,455		41,549
Petroleum Products	18,427		130		—		18,557
Pulp & Paper	25,478		—		—		25,478
Waste	5,194		—		—		5,194
Other	4,314		—		—		4,314
Total Freight Revenues	238,281		$	60,874	78,590		377,745
Freight-Related Revenues	65,345		11,709		42,283		119,337
All Other Revenues	15,850		1,324		4,852		22,026
Operating Revenues	$	319,476	$	73,907	$	125,725	$	519,108