Business Segment Information

3 Months Ended

Mar. 31, 2014

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 March 31, 2014:
Revenues from unaffiliated customers	$	400,739	51,584	20,629	714,384	227,508	76,801	—		1,491,645
Transfers between geographic areas	20,011		2,375	5,204	12,009	8,957	4,862	(53,418	)	—
Total revenues	$	420,750	53,959	25,833	726,393	236,465	81,663	(53,418	)	1,491,645
Net revenues1	$	192,082	26,161	15,357	133,274	73,057	24,655	—		464,586
Operating income	$	51,898	8,375	4,859	52,841	11,066	6,164	—		135,203
Identifiable assets at period end	$	1,437,768	105,070	61,503	697,614	457,614	162,249	3,686		2,925,504
Capital expenditures	$	3,928	264	301	3,126	852	289	—		8,760
Depreciation and amortization	$	7,852	280	212	2,108	1,492	438	—		12,382
Equity	$	1,151,455	69,702	32,017	448,196	205,060	89,068	(35,484	)	1,960,014
Three months ended March 31, 2013:
Revenues from unaffiliated customers	$	374,374	51,729	19,864	694,137	202,513	70,591	—		1,413,208
Transfers between geographic areas	20,026		2,544	4,876	10,630	8,880	4,327	(51,283	)	—
Total revenues	$	394,400	54,273	24,740	704,767	211,393	74,918	(51,283	)	1,413,208
Net revenues1	$	180,343	23,781	14,411	135,550	70,614	23,308	—		448,007
Operating income	$	47,353	6,612	4,089	52,884	11,926	5,654	—		128,518
Identifiable assets at period end	$	1,502,795	96,555	53,935	795,946	406,801	158,569	3,198		3,017,799
Capital expenditures	$	5,379	187	259	2,552	1,198	493	—		10,068
Depreciation and amortization	$	6,757	207	241	1,988	1,629	456	—		11,278
Equity	$	1,231,424	62,267	32,638	568,609	165,014	79,434	(34,765	)	2,104,621

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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
	March 31,
	2014		2013
Total revenues	$	1,491,645	$	1,413,208
Expenses:
Airfreight services	482,882		464,919
Ocean freight and ocean services	367,375		344,923
Customs brokerage and other services	176,802		155,359
Net revenues	$	464,586	$	448,007