Business Segment Information

9 Months Ended

Sep. 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 September 30, 2013:
Revenues from unaffiliated customers	$	394,046	52,962	22,136	777,711	212,482	75,752	—		1,535,089
Transfers between geographic areas	22,065		2,911	5,643	12,081	9,358	4,473	(56,531	)	—
Total revenues	$	416,111	55,873	27,779	789,792	221,840	80,225	(56,531	)	1,535,089
Net revenues1	$	196,389	26,255	15,627	147,343	70,924	25,487	—		482,025
Operating income	$	55,627	8,524	5,317	57,975	11,894	6,976	—		146,313
Identifiable assets at quarter end	$	1,694,366	102,713	52,785	663,584	438,711	142,843	3,561		3,098,563
Capital expenditures	$	12,463	639	147	1,250	703	280	—		15,482
Depreciation and amortization	$	7,608	211	210	2,343	1,534	723	—		12,629
Equity	$	1,423,598	63,351	30,637	439,719	181,134	75,444	(33,153	)	2,180,730
Three months ended September 30, 2012:
Revenues from unaffiliated customers	$	383,830	50,208	20,815	804,855	198,124	73,832	—		1,531,664
Transfers between geographic areas	24,423		2,677	4,140	10,676	9,624	4,507	(56,047	)	—
Total revenues	$	408,253	52,885	24,955	815,531	207,748	78,339	(56,047	)	1,531,664
Net revenues1	$	187,737	23,412	13,978	146,992	69,841	23,178	—		465,138
Operating income	$	56,096	6,886	4,239	59,620	13,312	4,946	—		145,099
Identifiable assets at quarter end	$	1,570,615	102,020	58,687	714,982	423,488	162,225	170		3,032,187
Capital expenditures	$	5,681	222	405	1,934	1,476	452	—		10,170
Depreciation and amortization	$	5,942	188	220	1,691	1,555	434	—		10,030
Equity	$	1,281,250	58,471	33,444	499,590	158,939	96,621	(32,616	)	2,095,699

(in thousands)	UNITED STATES		OTHER NORTH AMERICA	LATIN AMERICA	ASIA PACIFIC	EUROPE  and AFRICA	MIDDLE EAST and INDIA	ELIMI- NATIONS		CONSOLI- DATED
Nine months ended September 30, 2013:
Revenues from unaffiliated customers	$	1,158,569	161,317	63,421	2,221,033	620,964	220,723	—		4,446,027
Transfers between geographic areas	65,308		7,971	16,133	34,316	27,427	13,359	(164,514	)	—
Total revenues	$	1,223,877	169,288	79,554	2,255,349	648,391	234,082	(164,514	)	4,446,027
Net revenues1	$	564,895	75,476	45,560	424,235	212,555	73,689	—		1,396,410
Operating income	$	161,290	23,023	14,007	165,640	35,433	19,017	—		418,410
Identifiable assets at period end	$	1,694,366	102,713	52,785	663,584	438,711	142,843	3,561		3,098,563
Capital expenditures	$	22,196	1,534	551	14,858	2,464	1,088	—		42,691
Depreciation and amortization	$	21,641	615	680	6,314	4,713	1,618	—		35,581
Equity	$	1,423,598	63,351	30,637	439,719	181,134	75,444	(33,153	)	2,180,730
Nine months ended September 30, 2012:
Revenues from unaffiliated customers	$	1,140,258	149,964	61,450	2,273,783	606,696	215,835	—		4,447,986
Transfers between geographic areas	69,135		7,608	14,010	32,686	28,694	13,828	(165,961	)	—
Total revenues	$	1,209,393	157,572	75,460	2,306,469	635,390	229,663	(165,961	)	4,447,986
Net revenues1	$	551,503	70,769	43,537	414,714	212,871	71,966	—		1,365,360
Operating income	$	150,814	21,340	13,119	158,626	40,510	18,364	—		402,773
Identifiable assets at period end	$	1,570,615	102,020	58,687	714,982	423,488	162,225	170		3,032,187
Capital expenditures	$	20,676	551	1,060	9,823	3,529	1,433	—		37,072
Depreciation and amortization	$	17,320	556	644	4,960	4,389	1,376	—		29,245
Equity	$	1,281,250	58,471	33,444	499,590	158,939	96,621	(32,616	)	2,095,699

_______________________

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 total revenues when evaluating the Company's operating segment performance since total revenues earned as a freight consolidator include 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 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				Nine months ended
	September 30,				September 30,
	2013		2012		2013		2012
Total revenues	$	1,535,089	$	1,531,664	$	4,446,027	$	4,447,986
Expenses:
Airfreight services	466,699		471,947		1,414,634		1,437,301
Ocean freight and ocean services	409,649		432,518		1,135,299		1,177,919
Customs brokerage and other services	176,716		162,061		499,684		467,406
Net revenues	$	482,025	$	465,138	$	1,396,410	$	1,365,360