Business Segment Information

9 Months Ended

Sep. 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 September 30, 2014:
Revenues from unaffiliated customers	$	438,882	55,209	22,962	850,855	253,683	83,514	—		1,705,105
Transfers between geographic areas	24,847		2,867	5,194	12,965	9,492	5,427	(60,792	)	—
Total revenues	$	463,729	58,076	28,156	863,820	263,175	88,941	(60,792	)	1,705,105
Net revenues1	$	215,320	27,323	16,792	149,069	79,007	25,745	—		513,256
Operating income	$	68,972	7,779	4,890	57,409	14,413	5,668	—		159,131
Identifiable assets at period end	$	1,333,124	113,621	53,939	733,776	506,442	173,455	11,696		2,926,053
Capital expenditures	$	3,171	361	369	2,942	1,042	370	—		8,255
Depreciation and amortization	$	8,369	303	226	2,030	1,389	424	—		12,741
Equity	$	1,074,837	75,848	34,218	454,982	199,751	97,476	(33,182	)	1,903,930
Three months ended September 30, 2013:
Revenues from unaffiliated customers	$	396,764	52,962	22,136	777,845	212,507	75,752	—		1,537,966
Transfers between geographic areas	22,065		2,911	5,643	12,081	9,358	4,473	(56,531	)	—
Total revenues	$	418,829	55,873	27,779	789,926	221,865	80,225	(56,531	)	1,537,966
Net revenues1	$	199,107	26,255	15,627	147,477	70,949	25,487	—		484,902
Operating income	$	55,627	8,524	5,317	57,975	11,894	6,976	—		146,313
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	$	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

(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, 2014:
Revenues from unaffiliated customers	$	1,256,075	162,136	65,594	2,346,073	725,833	240,180	—		4,795,891
Transfers between geographic areas	67,266		7,829	15,965	37,367	27,917	15,527	(171,871	)	—
Total revenues	$	1,323,341	169,965	81,559	2,383,440	753,750	255,707	(171,871	)	4,795,891
Net revenues1	$	607,508	79,017	48,797	420,788	230,702	75,744	—		1,462,556
Operating income	$	180,650	23,155	14,425	161,686	39,698	17,163	—		436,777
Identifiable assets at period end	$	1,333,124	113,621	53,939	733,776	506,442	173,455	11,696		2,926,053
Capital expenditures	$	12,646	1,047	841	7,975	3,156	985	—		26,650
Depreciation and amortization	$	24,100	879	665	6,246	4,352	1,298	—		37,540
Equity	$	1,074,837	75,848	34,218	454,982	199,751	97,476	(33,182	)	1,903,930
Nine months ended September 30, 2013:
Revenues from unaffiliated customers	$	1,166,633	161,317	63,421	2,221,264	621,040	220,723	—		4,454,398
Transfers between geographic areas	65,308		7,971	16,133	34,316	27,427	13,359	(164,514	)	—
Total revenues	$	1,231,941	169,288	79,554	2,255,580	648,467	234,082	(164,514	)	4,454,398
Net revenues1	$	572,959	75,476	45,560	424,466	212,631	73,689	—		1,404,781
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

_______________________

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,
	2014		2013		2014		2013
Total revenues	$	1,705,105	$	1,537,966	$	4,795,891	$	4,454,398
Expenses:
Airfreight services	516,969		466,699		1,503,064		1,414,634
Ocean freight and ocean services	475,460		409,649		1,266,551		1,135,299
Customs brokerage and other services	199,420		176,716		563,720		499,684
Net revenues	$	513,256	$	484,902	$	1,462,556	$	1,404,781