SEGMENT INFORMATION:

The Company presents the financial results of its nine operating regions as three reportable segments: North American Operations, Australian Operations and U.K./European Operations. The Company's seven North American regions are aggregated into one segment as a result of having similar economic and operating characteristics. 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 Australian business underwent a transformational change on December 1, 2016, with the acquisition of GRail and the formation of the Australia Partnership, which the Company controls through its 51.1% interest. The GRail acquisition significantly expanded the Company's operations in New South Wales. In conjunction with the GRail acquisition, the Company issued a 48.9% equity stake in its Australian subsidiary, GWAHLP, to MIRA. The Company retained a 51.1% controlling interest in GWAHLP and continues to consolidate 100% of its Australian Operations in the Company's financial statements and reports a noncontrolling interest for MIRA's 48.9% equity ownership. As a result, (1) 100% of the assets and liabilities of the Company's Australian Operations, after the elimination of intercompany balances, were included in the Company's consolidated balance sheets as of September 30, 2018 and December 31, 2017, with MIRA's 48.9% noncontrolling interest reflected in the equity section, (2) the Company's operating revenues and operating income for the three and nine months ended September 30, 2018 and 2017 included 100% of the Australian Operations, while net income attributable to G&W reflected the Company's 51.1% ownership position in the Australian Operations since the formation of the partnership on December 1, 2016 and (3) 100% of the cash flows of the Australian Operations, after the elimination of intercompany items, were included in the Company's consolidated statements of cash flows for the nine months ended September 30, 2018 and 2017. Accordingly, any payments between the Company's Australian Operations and its other businesses are eliminated in consolidation, while the Company's cash flows reflect 100% of any cash flows between the Australian Operations and MIRA.

In accordance with the Australia Partnership agreement, the cash and cash equivalents of the Company's Australian Operations can be used to make payments in the usual and regular course of business, to pay down debt of the Australia Partnership and to make distributions to the partners in proportion to their investments. During the nine months ended September 30, 2018, the Australia Partnership made a A$40.0 million distribution, of which A$20.4 million (or $15.6 million at the exchange rate at the time the payment was made) and A$19.6 million (or $14.9 million at the exchange rate at the time the payment was made) were distributed to the Company and MIRA, respectively, and no such distributions were made for the nine months ended September 30, 2017.

The results of operations of the Company's 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 tables reflect the balance sheet exchange rates as of September 30, 2018 and December 31, 2017 and the average exchange rates for the three and nine months ended September 30, 2018 and 2017 used to translate the foreign entities respective local currency balance sheet and results of operations into United States dollars for the respective period:



					September 30, 2018		December 31, 2017
United States dollar per Australian dollar					$	0.72	$	0.78
United States dollar per British pound					$	1.30	$	1.35
United States dollar per Canadian dollar					$	0.77	$	0.80
United States dollar per Euro					$	1.16	$	1.20

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
United States dollar per Australian dollar	$	0.73	$	0.79	$	0.76	$	0.77
United States dollar per British pound	$	1.30	$	1.31	$	1.35	$	1.28
United States dollar per Canadian dollar	$	0.77	$	0.80	$	0.78	$	0.77
United States dollar per Euro	$	1.16	$	1.17	$	1.19	$	1.11

The following tables set forth select financial data for the Company's reportable segments, including operating revenues by commodity group, for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands) (prior period revenue amounts have not been adjusted under the modified retrospective method):



	Three Months Ended September 30, 2018
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Operating revenues:
Freight revenues by commodity group:
Agricultural Products	$	30,565	$	4,150	$	1,053	$	35,768
Autos & Auto Parts	5,513		—		—		5,513
Chemicals & Plastics	38,436		—		—		38,436
Coal & Coke	23,006		32,357		2,588		57,951
Food & Kindred Products	8,761		—		—		8,761
Intermodal	514		17,538		58,609		76,661
Lumber & Forest Products	24,113		—		—		24,113
Metallic Ores	3,573		8,914		—		12,487
Metals	34,904		—		—		34,904
Minerals & Stone	38,570		2,066		22,344		62,980
Petroleum Products	18,236		224		99		18,559
Pulp & Paper	31,961		—		—		31,961
Waste	8,089		—		—		8,089
Other	7,191		—		—		7,191
Total freight revenues	273,432		65,249		84,693		423,374
Freight-related revenues	66,045		10,136		69,269		145,450
All other revenues	16,232		1,318		16,930		34,480
Total operating revenues	$	355,709	$	76,703	$	170,892	$	603,304
Operating income	$	102,484	$	20,713	$	4,623	$	127,820
Depreciation and amortization	$	41,388	$	14,937	$	9,067	$	65,392
Interest expense, net	$	10,339	$	12,780	$	2,893	$	26,012
Provision for income taxes	$	26,323	$	2,398	$	2,292	$	31,013
Cash expenditures for additions to property & equipment, net of grants from outside parties	$	42,120	$	8,185	$	6,704	$	57,009



	Three Months Ended September 30, 2017
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Operating revenues:
Freight revenues by commodity group:
Agricultural Products	$	28,699	$	6,059	$	964	$	35,722
Autos & Auto Parts	6,079		—		—		6,079
Chemicals & Plastics	36,745		—		—		36,745
Coal & Coke	20,008		29,013		2,345		51,366
Food & Kindred Products	8,257		—		—		8,257
Intermodal	311		19,012		67,374		86,697
Lumber & Forest Products	22,204		—		—		22,204
Metallic Ores	3,703		11,305		—		15,008
Metals	26,008		—		—		26,008
Minerals & Stone	34,769		792		20,680		56,241
Petroleum Products	16,425		223		—		16,648
Pulp & Paper	28,135		—		—		28,135
Waste	6,662		—		—		6,662
Other	4,963		—		—		4,963
Total freight revenues	242,968		66,404		91,363		400,735
Freight-related revenues	60,286		12,880		67,757		140,923
All other revenues	15,673		1,986		17,610		35,269
Total operating revenues	$	318,927	$	81,270	$	176,730	$	576,927
Operating income	$	82,203	$	22,276	$	5,363	$	109,842
Depreciation and amortization	$	40,036	$	15,753	$	8,433	$	64,222
Interest expense, net	$	9,817	$	13,678	$	4,323	$	27,818
Provision for income taxes	$	28,270	$	2,013	$	224	$	30,507
Cash expenditures for additions to property & equipment, net of grants from outside parties	$	41,713	$	4,545	$	6,981	$	53,239



	Nine Months Ended September 30, 2018
	North American Operations		Australian Operations		U.K./European Operations			Total Operations
Operating revenues:
Freight revenues by commodity group:
Agricultural Products	$	91,630	$	15,639	$	3,073		$	110,342
Autos & Auto Parts	16,686		—		—			16,686
Chemicals & Plastics	113,625		—		—			113,625
Coal & Coke	62,038		96,506		8,751			167,295
Food & Kindred Products	25,587		—		—			25,587
Intermodal	1,203		50,613		192,413			244,229
Lumber & Forest Products	70,362		—		—			70,362
Metallic Ores	10,816		24,770		—			35,586
Metals	95,791		—		—			95,791
Minerals & Stone	107,122		6,247		63,849			177,218
Petroleum Products	52,870		560		107			53,537
Pulp & Paper	90,346		—		—			90,346
Waste	21,316		—		—			21,316
Other	19,325		—		—			19,325
Freight revenues	778,717		194,335		268,193			1,241,245
Freight-related revenues	193,344		32,214		203,491			429,049
All other revenues	48,835		4,017		49,809			102,661
Total operating revenues	$	1,020,896	$	230,566	$	521,493		$	1,772,955
Operating income/(loss)	$	255,918	$	62,585	$	(645	)	$	317,858
Depreciation and amortization	$	123,266	$	46,232	$	27,629		$	197,127
Interest expense, net	$	30,572	$	38,914	$	9,620		$	79,106
Provision for income taxes	$	26,930	$	7,120	$	7,519		$	41,569
Cash expenditures for additions to property & equipment, net of grants from outside parties	$	129,607	$	27,936	$	19,893		$	177,436



	Nine Months Ended September 30, 2017
	North American Operations		Australian Operations		U.K./European Operations			Total Operations
Operating revenues:
Freight revenues by commodity group:
Agricultural Products	$	92,956	$	17,737	$	3,532		$	114,225
Autos & Auto Parts	17,019		—		—			17,019
Chemicals & Plastics	111,660		—		—			111,660
Coal & Coke	57,123		86,292		7,464			150,879
Food & Kindred Products	24,856		—		—			24,856
Intermodal	726		52,113		190,163			243,002
Lumber & Forest Products	64,903		—		—			64,903
Metallic Ores	10,519		29,595		—			40,114
Metals	78,681		—		—			78,681
Minerals & Stone	97,446		4,787		49,823			152,056
Petroleum Products	50,696		507		—			51,203
Pulp & Paper	79,690		—		—			79,690
Waste	19,000		—		—			19,000
Other	14,347		—		—			14,347
Freight revenues	$	719,622	$	191,031	$	250,982		$	1,161,635
Freight-related revenues	186,814		36,089		164,978			387,881
All other revenues	47,641		4,866		34,445			86,952
Total operating revenues	$	954,077	$	231,986	$	450,405		$	1,636,468
Operating income/(loss)	$	229,545	$	59,685	$	(3,755	)	$	285,475
Depreciation and amortization	$	117,822	$	45,915	$	22,772		$	186,509
Interest expense, net	$	29,928	$	41,500	$	7,732		$	79,160
Provision for/(benefit from) income taxes	$	78,133	$	4,805	$	(906	)	$	82,032
Cash expenditures for additions to property & equipment, net of grants from outside parties	$	105,940	$	9,721	$	17,446		$	133,107

The following tables set forth select balance sheet data for the Company's reportable segments as of September 30, 2018 and December 31, 2017 (dollars in thousands):



	September 30, 2018
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Cash and cash equivalents	$	7,624	$	52,568	$	13,875	$	74,067
Property and equipment, net	$	3,674,865	$	617,960	$	320,470	$	4,613,295



	December 31, 2017
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Cash and cash equivalents	$	13,584	$	52,407	$	14,481	$	80,472
Property and equipment, net	$	3,657,801	$	664,367	$	334,753	$	4,656,921