Business Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company is organized functionally in geographic operating segments. Accordingly, management focuses its attention on revenues, net revenues¹, operating income, identifiable assets, capital expenditures, depreciation and amortization and equity generated in each of these geographical areas when evaluating the effectiveness of geographic management. The Company charges its subsidiaries and affiliates for services rendered in the United States on a cost recovery basis. Transactions among the Company’s various offices are conducted using the same arms-length pricing methodologies the Company uses when its offices transact business with independent agents.

Financial information regarding the Company’s operations by geographic area is as follows:

(in thousands)	UNITED STATES		OTHER NORTH AMERICA	LATIN AMERICA	ASIA PACIFIC	EUROPE  and AFRICA	MIDDLE EAST and INDIA	ELIMI- NATIONS		CONSOLI- DATED
Three months ended June 30, 2013:
Revenues from unaffiliated customers	$	392,804	56,626	21,421	749,227	205,995	74,380	—		1,500,453
Transfers between geographic areas	23,217		2,516	5,614	11,605	9,189	4,559	(56,700	)	—
Total revenues	$	416,021	59,142	27,035	760,832	215,184	78,939	(56,700	)	1,500,453
Net revenues1	$	190,818	25,440	15,522	141,385	71,042	24,894	—		469,101
Operating income	$	58,310	7,887	4,601	54,781	11,613	6,387	—		143,579
Identifiable assets at quarter end	$	1,531,739	101,721	53,795	809,827	418,077	155,058	(6,552	)	3,063,665
Capital expenditures	$	4,354	708	145	11,056	563	315	—		17,141
Depreciation and amortization	$	7,276	197	229	1,983	1,550	439	—		11,674
Equity	$	1,209,762	65,897	33,272	606,793	166,891	75,418	(36,091	)	2,121,942
Three months ended June 30, 2012:
Revenues from unaffiliated customers	$	379,126	49,802	21,366	780,858	202,301	71,499	—		1,504,952
Transfers between geographic areas	22,504		2,466	4,791	11,038	9,603	4,670	(55,072	)	—
Total revenues	$	401,630	52,268	26,157	791,896	211,904	76,169	(55,072	)	1,504,952
Net revenues1	$	182,291	25,115	14,724	135,908	71,497	24,116	—		453,651
Operating income	$	49,193	8,085	4,118	51,768	12,951	6,288	—		132,403
Identifiable assets at quarter end	$	1,597,543	93,374	52,019	687,586	412,752	152,754	(3,656	)	2,992,372
Capital expenditures	$	5,236	153	400	2,602	1,111	312	—		9,814
Depreciation and amortization	$	5,756	181	207	1,645	1,430	451	—		9,670
Equity	$	1,295,963	51,248	31,903	462,123	144,659	94,892	(30,731	)	2,050,057

(in thousands)	UNITED STATES		OTHER NORTH AMERICA	LATIN AMERICA	ASIA PACIFIC	EUROPE  and AFRICA	MIDDLE EAST and INDIA	ELIMI- NATIONS		CONSOLI- DATED
Six months ended June 30, 2013:
Revenues from unaffiliated customers	$	764,523	108,355	41,285	1,443,322	408,482	144,971	—		2,910,938
Transfers between geographic areas	43,243		5,060	10,490	22,235	18,069	8,886	(107,983	)	—
Total revenues	$	807,766	113,415	51,775	1,465,557	426,551	153,857	(107,983	)	2,910,938
Net revenues1	$	368,506	49,221	29,933	276,892	141,631	48,202	—		914,385
Operating income	$	105,663	14,499	8,690	107,665	23,539	12,041	—		272,097
Identifiable assets at period end	$	1,531,739	101,721	53,795	809,827	418,077	155,058	(6,552	)	3,063,665
Capital expenditures	$	9,733	895	404	13,608	1,761	808	—		27,209
Depreciation and amortization	$	14,033	404	470	3,971	3,179	895	—		22,952
Equity	$	1,209,762	65,897	33,272	606,793	166,891	75,418	(36,091	)	2,121,942
Six months ended June 30, 2012:
Revenues from unaffiliated customers	$	756,428	99,756	40,635	1,468,928	408,572	142,003	—		2,916,322
Transfers between geographic areas	44,712		4,931	9,870	22,010	19,070	9,321	(109,914	)	—
Total revenues	$	801,140	104,687	50,505	1,490,938	427,642	151,324	(109,914	)	2,916,322
Net revenues1	$	363,766	47,357	29,559	267,722	143,030	48,788	—		900,222
Operating income	$	94,718	14,454	8,880	99,006	27,198	13,418	—		257,674
Identifiable assets at period end	$	1,597,543	93,374	52,019	687,586	412,752	152,754	(3,656	)	2,992,372
Capital expenditures	$	14,995	329	655	7,889	2,053	981	—		26,902
Depreciation and amortization	$	11,378	368	424	3,269	2,834	942	—		19,215
Equity	$	1,295,963	51,248	31,903	462,123	144,659	94,892	(30,731	)	2,050,057

_______________________

¹Net revenues are a non-GAAP measure calculated as revenues less directly related operations expenses attributable to the Company's principal services. The Company's management believes that net revenues are a better measure than are total revenues when evaluating the Company's operating segment performance since total revenues earned as a freight consolidator must consider the carriers' charges for carrying the shipment, whereas revenues earned in other capacities include primarily the commissions and fees earned by the Company. Net revenue is one of the Company's primary operational and financial measures and demonstrates the Company's ability to concentrate and leverage purchasing power (buy rates) through effective consolidation of shipments from customers utilizing a variety of transportation carriers and optimal routings.

The following table presents the calculation of consolidated net revenues:

	Three months ended				Six months ended
	June 30,				June 30,
	2013		2012		2013		2012
Total revenues	$	1,500,453	$	1,504,952	$	2,910,938	$	2,916,322
Expenses:
Airfreight services	483,016		484,311		947,935		965,354
Ocean freight and ocean services	380,727		413,447		725,650		745,401
Customs brokerage and other services	167,609		153,543		322,968		305,345
Net revenues	$	469,101	$	453,651	$	914,385	$	900,222