SEGMENT INFORMATION:

The Company presents the financial results of its eight operating regions as three reportable segments: North American Operations, Australian Operations and U.K./European Operations. During the three months ended March 31, 2019, the Company's Central Region railroads were consolidated into the Company's Midwest and Southern regions. The Company's remaining six 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

Glencore Rail (NSW) Pty Limited (GRail) and the formation of a partnership with Macquarie Infrastructure and Real Assets (MIRA) (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 March 31, 2019 and December 31, 2018, with MIRA's 48.9% noncontrolling interest reflected in the equity section, (2) the Company's operating revenues and operating income for the three months ended March 31, 2019 and 2018 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 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 three months ended March 31, 2019 and 2018. 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 Company's Australian Partnership agreement with MIRA, the cash and cash equivalents of the Company's Australian Operations can be used to make payments in the ordinary course of business, to pay down debt of the Australia Partnership and to make distributions to the partners in proportion to their investments. No such distributions were made during the three months ended March 31, 2019 or 2018.

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 exchange rate at the end of the period for balance sheet items and, for the statement of operations, at the average rate for the period. Currency translation adjustments are reflected within the equity section of the balance sheet and are included in other comprehensive income. Upon complete or substantially complete liquidation of the underlying investment in the foreign subsidiary, cumulative translation adjustments are recognized in the consolidated statements of operations. 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 March 31, 2019 and December 31, 2018:



	March 31, 2019		December 31, 2018
United States dollar per Australian dollar	$	0.71	$	0.70
United States dollar per British pound	$	1.30	$	1.28
United States dollar per Canadian dollar	$	0.75	$	0.73
United States dollar per Euro	$	1.12	$	1.15

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 three months ended March 31, 2019 and 2018:



	Three Months Ended
	March 31,
	2019		2018
United States dollar per Australian dollar	$	0.71	$	0.79
United States dollar per British pound	$	1.30	$	1.39
United States dollar per Canadian dollar	$	0.75	$	0.79
United States dollar per Euro	$	1.14	$	1.23

The following tables set forth select financial data for the Company's reportable segments, including operating revenues by commodity group, for the three months ended March 31, 2019 and 2018 (dollars in thousands):



	Three Months Ended
	March 31, 2019
	North American Operations		Australian Operations		U.K./European Operations			Total Operations
Operating revenues:
Freight revenues by commodity group:
Agricultural Products	$	31,963	$	3,054	$	736		$	35,753
Autos & Auto Parts	5,482		—		—			5,482
Chemicals & Plastics	37,173		—		—			37,173
Coal & Coke	19,190		29,171		4,693			53,054
Food & Kindred Products	8,403		—		—			8,403
Intermodal	455		13,800		59,205			73,460
Lumber & Forest Products	21,857		—		—			21,857
Metallic Ores	2,793		7,618		—			10,411
Metals	29,862		—		—			29,862
Minerals & Stone	31,810		2,038		15,882			49,730
Petroleum Products	20,699		138		691			21,528
Pulp & Paper	30,279		—		—			30,279
Waste	6,862		—		—			6,862
Other	4,935		—		—			4,935
Total freight revenues	251,763		55,819		81,207			388,789
Freight-related revenues	64,476		7,855		63,931			136,262
All other revenues	16,207		1,433		15,398			33,038
Total operating revenues	$	332,446	$	65,107	$	160,536		$	558,089
Operating income/(loss)	$	69,315	$	12,503	$	(2,108	)	$	79,710
Depreciation and amortization	$	38,431	$	14,411	$	9,784		$	62,626
Interest expense, net	$	12,401	$	12,123	$	2,539		$	27,063
Provision for income taxes	$	14,087	$	114	$	59		$	14,260
Cash expenditures for additions to property & equipment, net of grants from outside parties	$	48,071	$	2,849	$	10,373		$	61,293



	Three Months Ended
	March 31, 2018
	North American Operations			Australian Operations		U.K./European Operations			Total Operations
Operating revenues:
Freight revenues 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
Total operating revenues	$	325,630		$	74,834	$	174,197		$	574,661
Operating income/(loss)	$	73,160		$	15,976	$	(2,223	)	$	86,913
Depreciation and amortization	$	40,631		$	16,007	$	9,352		$	65,990
Interest expense, net	$	8,455		$	13,241	$	3,042		$	24,738
(Benefit from)/provision for income taxes	$	(19,485	)	$	821	$	2,774		$	(15,890	)
Cash expenditures for additions to property & equipment, net of grants from outside parties	$	38,563		$	5,262	$	8,463		$	52,288

The following tables set forth select balance sheet data for the Company's reportable segments as of March 31, 2019 and December 31, 2018 (dollars in thousands):



	March 31, 2019
	North American Operations		Australian Operations		U.K./European Operations		Total Operations
Cash and cash equivalents	$	11,367	$	39,782	$	18,959	$	70,108
Property and equipment, net	$	3,702,660	$	606,947	$	334,329	$	4,643,936



	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