NOTE 11. BUSINESS SEGMENTS Our current business strategy includes two operating segments: Real Estate Operations and Strategic Capital. We generate revenues, earnings, net operating income and cash flows through our segments, as follows:  Real Estate Operations. This operating segment represents the ownership and development of operating properties and is the largest component of our revenue and earnings. We collect rent from our customers through operating leases, including reimbursements for the majority of our property operating costs. Each operating property is considered to be an individual operating segment with similar economic characteristics; these properties are combined within the reportable business segment based on geographic location. Our Real Estate Operations segment also includes development activities that lead to rental operations, including land held for development and properties currently under development. Within this line of business, we utilize the following: (i) our land bank; (ii) the development expertise of our local teams; and (iii) our customer relationships. Land we own and lease to customers under ground leases, along with land and buildings we lease, is also included in this segment.  Strategic Capital. This operating segment represents the management of unconsolidated co-investment ventures. We generate strategic capital revenues primarily from our unconsolidated co-investment ventures through asset management and property management services and we earn additional revenues by providing leasing, acquisition, construction, development, financing, legal and disposition services. Depending on the structure of the venture and the returns provided to our partners, we also earn revenues through promotes periodically during the life of a venture or upon liquidation. Each unconsolidated co-investment venture we manage is considered to be an individual operating segment with similar economic characteristics; these ventures are combined within the reportable business segment based on geographic location. Reconciliations are presented below for: (i) each reportable business segments revenues from external customers to Total Revenues ; (ii) each reportable business segments net operating income from external customers to Operating Income and Earnings Before Income Taxes ; and (iii) each reportable business segments assets to Total Assets . Our chief operating decision makers rely primarily on net operating income and similar measures to make decisions about allocating resources and assessing segment performance. The applicable components of Total Revenues , Operating Income , Earnings Before Income Taxes and Total Assets are allocated to each reportable business segments revenues, net operating income and assets. Items that are not directly assignable to a segment, such as certain corporate income and expenses, are not allocated but reflected as reconciling items. The following reconciliations are presented in thousands: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenues: Real estate operations segment: U.S. $ 649,433 $ 491,051 $ 1,301,302 $ 990,308 Other Americas 23,847 29,948 47,712 60,379 Europe 12,263 12,908 20,820 30,110 Asia 15,685 11,672 29,641 25,477 Total real estate operations segment 701,228 545,579 1,399,475 1,106,274 Strategic capital segment: U.S. 20,536 17,905 40,804 33,974 Other Americas 13,624 12,256 21,524 18,409 Europe 33,539 28,488 62,377 67,305 Asia 21,445 17,048 38,244 88,970 Total strategic capital segment 89,144 75,697 162,949 208,658 Total revenues 790,372 621,276 1,562,424 1,314,932 Segment net operating income: Real estate operations segment: U.S. (1) 481,631 367,935 952,707 737,299 Other Americas 15,865 22,488 34,918 45,411 Europe 6,888 8,693 12,432 21,152 Asia 12,191 8,619 22,863 18,388 Total real estate operations segment 516,575 407,735 1,022,920 822,250 Strategic capital segment: U.S. (1) 7,794 5,893 11,121 1,657 Other Americas 9,355 9,032 14,777 11,939 Europe 23,223 19,382 42,374 47,045 Asia 11,566 6,540 19,413 69,307 Total strategic capital segment 51,938 40,847 87,685 129,948 Total segment net operating income 568,513 448,582 1,110,605 952,198 Reconciling items: General and administrative expenses (66,276 ) (57,615 ) (135,977 ) (120,043 ) Depreciation and amortization expenses (284,376 ) (203,673 ) (568,385 ) (407,754 ) Gains on real estate transactions, net 224,195 94,261 412,403 289,372 Operating income 442,056 281,555 818,646 713,773 Earnings from unconsolidated entities, net 48,556 62,549 105,222 125,205 Interest expense (59,122 ) (56,314 ) (119,629 ) (102,575 ) Interest and other income, net 4,312 5,641 12,222 7,617 Foreign currency and derivative gains, net 2,041 85,382 10,775 44,288 Gains (losses) on early extinguishment of debt, net (385 ) 282 (2,501 ) (702 ) Earnings before income taxes $ 437,458 $ 379,095 $ 824,735 $ 787,606 June 30, 2019 December 31, 2018 Segment assets: Real estate operations segment: U.S. $ 28,180,614 $ 27,666,200 Other Americas 1,224,892 1,712,862 Europe 1,228,961 1,040,061 Asia 833,922 1,012,253 Total real estate operations segment 31,468,389 31,431,376 Strategic capital segment: (2) U.S. 15,165 15,802 Europe 25,280 25,280 Asia 373 455 Total strategic capital segment 40,818 41,537 Total segment assets 31,509,207 31,472,913 Reconciling items: Investments in and advances to unconsolidated entities 5,813,582 5,745,294 Assets held for sale or contribution 609,121 622,288 Lease right-of-use assets 117,037 - Cash and cash equivalents 401,190 343,856 Other assets 256,613 233,313 Total reconciling items 7,197,543 6,944,751 Total assets $ 38,706,750 $ 38,417,664 (1) This includes compensation and personnel costs for employees who were located in the U.S. but also support other regions. (2) Represents management contracts and goodwill recorded in connection with business combinations associated with the Strategic Capital segment. Goodwill was $25.3 million at June 30, 2019 and December 31, 2018.