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Business Segment Information
6 Months Ended
Jun. 30, 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 June 30, 2014:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues from unaffiliated customers
$
416,454

 
55,343

 
22,003

 
780,834

 
244,642

 
79,865

 

 
1,599,141

Transfers between geographic areas
22,408

 
2,587

 
5,567

 
12,393

 
9,468

 
5,238

 
(57,661
)
 

Total revenues
$
438,862

 
57,930

 
27,570

 
793,227

 
254,110

 
85,103

 
(57,661
)
 
1,599,141

Net revenues1
$
200,106

 
25,533

 
16,648

 
138,445

 
78,638

 
25,344

 

 
484,714

Operating income
$
59,780

 
7,001

 
4,676

 
51,436

 
14,219

 
5,331

 

 
142,443

Identifiable assets at period end
$
1,328,312

 
110,498

 
57,588

 
743,190

 
511,149

 
173,425

 
5,778

 
2,929,940

Capital expenditures
$
5,547

 
422

 
171

 
1,907

 
1,262

 
326

 

 
9,635

Depreciation and amortization
$
7,879

 
296

 
227

 
2,108

 
1,471

 
436

 

 
12,417

Equity
$
1,044,386

 
72,681

 
35,578

 
481,899

 
204,952

 
94,390

 
(36,749
)
 
1,897,137

Three months ended June 30, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues from unaffiliated customers
$
395,495

 
56,626

 
21,421

 
749,282

 
206,020

 
74,380

 

 
1,503,224

Transfers between geographic areas
23,217

 
2,516

 
5,614

 
11,605

 
9,189

 
4,559

 
(56,700
)
 

Total revenues
$
418,712

 
59,142

 
27,035

 
760,887

 
215,209

 
78,939

 
(56,700
)
 
1,503,224

Net revenues1
$
193,509

 
25,440

 
15,522

 
141,439

 
71,068

 
24,894

 

 
471,872

Operating income
$
58,310

 
7,887

 
4,601

 
54,781

 
11,613

 
6,387

 

 
143,579

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
$
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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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, 2014:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues from unaffiliated customers
$
817,193

 
106,927

 
42,632

 
1,495,218

 
472,150

 
156,666

 

 
3,090,786

Transfers between geographic areas
42,419

 
4,962

 
10,771

 
24,402

 
18,425

 
10,100

 
(111,079
)
 

Total revenues
$
859,612

 
111,889

 
53,403

 
1,519,620

 
490,575

 
166,766

 
(111,079
)
 
3,090,786

Net revenues1
$
392,188

 
51,694

 
32,005

 
271,719

 
151,695

 
49,999

 

 
949,300

Operating income
$
111,678

 
15,376

 
9,535

 
104,277

 
25,285

 
11,495

 

 
277,646

Identifiable assets at period end
$
1,328,312

 
110,498

 
57,588

 
743,190

 
511,149

 
173,425

 
5,778

 
2,929,940

Capital expenditures
$
9,475

 
686

 
472

 
5,033

 
2,114

 
615

 

 
18,395

Depreciation and amortization
$
15,731

 
576

 
439

 
4,216

 
2,963

 
874

 

 
24,799

Equity
$
1,044,386

 
72,681

 
35,578

 
481,899

 
204,952

 
94,390

 
(36,749
)
 
1,897,137

Six months ended June 30, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues from unaffiliated customers
$
769,869

 
108,355

 
41,285

 
1,443,419

 
408,533

 
144,971

 

 
2,916,432

Transfers between geographic areas
43,243

 
5,060

 
10,490

 
22,235

 
18,069

 
8,886

 
(107,983
)
 

Total revenues
$
813,112

 
113,415

 
51,775

 
1,465,654

 
426,602

 
153,857

 
(107,983
)
 
2,916,432

Net revenues1
$
373,852

 
49,221

 
29,933

 
276,989

 
141,682

 
48,202

 

 
919,879

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


_______________________
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
 
Six months ended
 
June 30,
 
June 30,
 
2014
 
2013
 
2014
 
2013
Total revenues
$
1,599,141

 
$
1,503,224

 
$
3,090,786

 
$
2,916,432

Expenses:
 
 
 
 
 
 
 
Airfreight services
503,213

 
483,016

 
986,095

 
947,935

Ocean freight and ocean services
423,716

 
380,727

 
791,091

 
725,650

Customs brokerage and other services
187,498

 
167,609

 
364,300

 
322,968

Net revenues
$
484,714

 
$
471,872

 
$
949,300

 
$
919,879