SEGMENT AND GEOGRAPHIC AREA INFORMATION:

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 (as more fully described in Note 1, Business and Customers). 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 (as more fully described in Note 2, Significant Accounting Policies).

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 December 31, 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 years ended December 31, 2018, 2017 and 2016 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 years ended December 31, 2018, 2017 and 2016. 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 year ended December 31, 2018, the Australia Partnership made A$65.0 million of such distributions, of which A$33.2 million (or $24.6 million at the exchange rate at the time the payments were made) and A$31.8 million (or $23.6 million at the exchange rate at the time the payments were made) were distributed to the Company and MIRA, respectively, and no such distributions were made for the years ended December 31, 2017 and 2016.

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 balance sheet exchange rates used to translate each foreign entity's respective local currency balance sheet into United States dollars as of December 31, 2018 and 2017:



	2018		2017
United States dollar per Australian dollar	$	0.70	$	0.78
United States dollar per British pound	$	1.28	$	1.35
United States dollar per Canadian dollar	$	0.73	$	0.80
United States dollar per Euro	$	1.15	$	1.20

The following table reflects the average exchange rates used to translate each foreign entity's respective local currency results of operations into United States dollars for the years ended December 31, 2018, 2017 and 2016:



	2018		2017		2016
United States dollar per Australian dollar	$	0.75	$	0.77	$	0.74
United States dollar per British pound	$	1.34	$	1.29	$	1.36
United States dollar per Canadian dollar	$	0.77	$	0.77	$	0.76
United States dollar per Euro	$	1.18	$	1.13	$	1.11

The following tables set forth select financial data for the Company's reportable segments, including operating revenues by commodity group, for the years ended December 31, 2018, 2017 and 2016 (dollars in thousands) (prior period revenue amounts have not been adjusted under the modified retrospective method):



	December 31, 2018
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Operating revenues:
Freight revenues by commodity group:
Agricultural Products	$	122,832	$	18,635	$	4,567	$	146,034
Autos & Auto Parts	21,568		—		—		21,568
Chemicals & Plastics	151,759		—		—		151,759
Coal & Coke	83,162		125,599		11,706		220,467
Food & Kindred Products	34,361		—		—		34,361
Intermodal	1,665		68,010		249,317		318,992
Lumber & Forest Products	91,928		—		—		91,928
Metallic Ores	13,940		33,808		—		47,748
Metals	126,579		—		—		126,579
Minerals & Stone	140,310		8,273		83,582		232,165
Petroleum Products	74,177		697		722		75,596
Pulp & Paper	121,600		—		—		121,600
Waste	29,049		—		—		29,049
Other	24,619		—		—		24,619
Total freight revenues	1,037,549		255,022		349,894		1,642,465
Freight-related revenues	257,162		41,252		273,181		571,595
All other revenues	64,159		5,404		64,927		134,490
Total operating revenues	$	1,358,870	$	301,678	$	688,002	$	2,348,550
Operating income	$	343,112	$	80,277	$	123	$	423,512
Depreciation and amortization	$	165,625	$	60,766	$	36,825	$	263,216
Interest expense, net	$	40,827	$	51,358	$	12,278	$	104,463
Provision for income taxes	$	43,531	$	8,694	$	12,310	$	64,535
Cash expenditures for additions to property & equipment, net of grants from outside parties	$	182,645	$	42,722	$	38,208	$	263,575



	December 31, 2017
	North American Operations			Australian Operations		U.K./European Operations			Total Operations
Operating revenues:
Freight revenues by commodity group:
Agricultural Products	$	124,285		$	22,562	$	5,280		$	152,127
Autos & Auto Parts	22,901			—		—			22,901
Chemicals & Plastics	148,252			—		—			148,252
Coal & Coke	75,935			117,678		9,972			203,585
Food & Kindred Products	33,424			—		—			33,424
Intermodal	980			69,433		253,854			324,267
Lumber & Forest Products	87,200			—		—			87,200
Metallic Ores	13,391			37,415		—			50,806
Metals	103,863			—		—			103,863
Minerals & Stone	130,511			6,878		68,760			206,149
Petroleum Products	68,388			687		—			69,075
Pulp & Paper	107,453			—		—			107,453
Waste	25,063			—		—			25,063
Other	19,710			—		—			19,710
Total freight revenues	961,356			254,653		337,866			1,553,875
Freight-related revenues	249,623			46,696		237,332			533,651
All other revenues	63,306			6,161		51,051			120,518
Total operating revenues	$	1,274,285		$	307,510	$	626,249		$	2,208,044
Operating income	$	304,252		$	77,251	$	10,478		$	391,981
Depreciation and amortization	$	158,006		$	61,142	$	31,309		$	250,457
Interest expense, net	$	38,547		$	54,718	$	11,944		$	105,209
(Benefit from)/provision for income taxes	$	(266,063	)	$	6,110	$	(1,306	)	$	(261,259	)
Cash expenditures for additions to property & equipment, net of grants from outside parties	$	166,685		$	16,076	$	25,462		$	208,223



	December 31, 2016
	North American Operations		Australian Operations		U.K./European Operations			Total Operations
Operating revenues:
Freight revenues by commodity group:
Agricultural Products	$	115,627	$	17,511	$	2,465		$	135,603
Autos & Auto Parts	18,259		—		—			18,259
Chemicals & Plastics	137,712		—		—			137,712
Coal & Coke	74,664		11,112		14,982			100,758
Food & Kindred Products	33,549		—		—			33,549
Intermodal	99		66,761		262,977			329,837
Lumber & Forest Products	83,509		—		170			83,679
Metallic Ores	16,819		16,874		100			33,793
Metals	103,799		—		—			103,799
Minerals & Stone	114,185		7,634		56,631			178,450
Petroleum Products	70,519		730		—			71,249
Pulp & Paper	104,523		—		—			104,523
Waste	20,835		—		—			20,835
Other	19,520		—		—			19,520
Total 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)	$	319,661	$	4,810	$	(38,109	)	$	286,362
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

The following table sets forth the cash and cash equivalents and property and equipment recorded in the consolidated balance sheets for each reportable segment as of December 31, 2018 and 2017 (dollars in thousands):



	December 31, 2018
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Cash and cash equivalents	$	33,996	$	26,902	$	29,489	$	90,387
Property and equipment, net	$	3,679,279	$	609,450	$	324,285	$	4,613,014



	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

Geographic Area Information

Operating revenues for each geographic area for the years ended December 31, 2018, 2017 and 2016 were as follows (dollars in thousands):



	2018				2017				2016
	Amount		% of Total		Amount		% of Total		Amount		% of Total
Operating revenues:
United States	$	1,249,095	53.2	%	$	1,176,674	53.3	%	$	1,142,141	57.1	%
Non-United States:
Australia	$	301,678	12.8	%	$	307,510	13.9	%	$	222,586	11.1	%
Canada	109,775		4.7	%	97,611		4.4	%	94,623		4.7	%
U.K.	555,563		23.7	%	475,239		21.5	%	378,551		18.9	%
Netherlands	47,090		2.0	%	78,819		3.6	%	101,837		5.1	%
Poland	74,294		3.1	%	59,254		2.7	%	46,428		2.3	%
Other	11,055		0.5	%	12,937		0.6	%	15,361		0.8	%
Total Non-United States	$	1,099,455	46.8	%	$	1,031,370	46.7	%	$	859,386	42.9	%
Total operating revenues	$	2,348,550	100.0	%	$	2,208,044	100.0	%	$	2,001,527	100.0	%

Property and equipment for each geographic area as of December 31, 2018 and 2017 were as follows (dollars in thousands):



	2018				2017
	Amount		% of Total		Amount		% of Total
Property and equipment located in:
United States	$	3,449,739	74.8	%	$	3,404,204	73.1	%
Non-United States:
Australia	$	609,450	13.1	%	$	664,367	14.3	%
Canada	229,540		5.0	%	253,597		5.4	%
U.K.	307,888		6.7	%	317,495		6.8	%
Other	16,397		0.4	%	17,258		0.4	%
Total Non-United States	$	1,163,275	25.2	%	$	1,252,717	26.9	%
Total property and equipment, net	$	4,613,014	100.0	%	$	4,656,921	100.0	%