Business Segment Information

6 Months Ended

Jun. 30, 2015

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	NORTH ASIA	SOUTH ASIA	EUROPE	MIDDLE EAST, AFRICA AND INDIA	ELIMI- NATIONS		CONSOLI- DATED
Three months ended June 30, 2015:
Revenues from unaffiliated customers	$	449,622	58,739	24,314	649,901	184,862	239,953	84,162	—		1,691,553
Transfers between geographic areas	32,486		3,685	5,403	5,427	6,473	10,716	5,112	(69,302	)	—
Total revenues	$	482,108	62,424	29,717	655,328	191,335	250,669	89,274	(69,302	)	1,691,553
Net revenues1	$	229,353	30,576	17,485	124,491	46,944	76,607	26,685	—		552,141
Operating income	$	68,547	10,437	5,441	60,597	16,140	15,587	5,967	—		182,716
Identifiable assets at period end	$	1,381,755	103,613	57,711	572,425	141,344	448,475	219,280	7,772		2,932,375
Capital expenditures	$	7,711	1,656	569	475	989	921	591	—		12,912
Depreciation and amortization	$	7,339	310	248	1,379	548	1,176	420	—		11,420
Equity	$	1,075,703	59,374	38,447	344,479	118,175	166,569	124,564	(37,578	)	1,889,733
Three months ended June 30, 2014:
Revenues from unaffiliated customers	$	416,454	55,343	22,003	623,625	152,570	250,823	78,323	—		1,599,141
Transfers between geographic areas	22,408		2,587	5,567	5,637	6,708	9,829	4,925	(57,661	)	—
Total revenues	$	438,862	57,930	27,570	629,262	159,278	260,652	83,248	(57,661	)	1,599,141
Net revenues1	$	200,106	25,533	16,648	97,498	40,145	79,958	24,826	—		484,714
Operating income	$	59,780	7,001	4,676	39,321	11,828	14,952	4,885	—		142,443
Identifiable assets at period end	$	1,328,312	110,498	57,588	587,891	153,660	481,190	205,023	5,778		2,929,940
Capital expenditures	$	5,547	422	171	1,383	518	1,234	360	—		9,635
Depreciation and amortization	$	7,879	296	227	1,476	620	1,478	441	—		12,417
Equity	$	1,044,386	72,681	35,578	356,974	122,577	189,296	112,394	(36,749	)	1,897,137

(in thousands)	UNITED STATES		OTHER NORTH AMERICA	LATIN AMERICA	NORTH ASIA	SOUTH ASIA	EUROPE	MIDDLE EAST, AFRICA AND INDIA	ELIMI- NATIONS		CONSOLI- DATED
Six months ended June 30, 2015:
Revenues from unaffiliated customers	$	893,803	113,533	48,395	1,295,345	366,243	482,039	169,721	—		3,369,079
Transfers between geographic areas	60,161		6,499	10,180	11,124	12,388	20,353	10,179	(130,884	)	—
Total revenues	$	953,964	120,032	58,575	1,306,469	378,631	502,392	179,900	(130,884	)	3,369,079
Net revenues1	$	448,956	61,254	34,044	241,896	89,144	152,495	53,838	—		1,081,627
Operating income	$	127,728	21,528	10,797	117,653	30,020	30,658	13,215	—		351,599
Identifiable assets at period end	$	1,381,755	103,613	57,711	572,425	141,344	448,475	219,280	7,772		2,932,375
Capital expenditures	$	14,036	1,944	1,186	765	1,308	2,069	1,049	—		22,357
Depreciation and amortization	$	14,732	602	516	2,778	1,078	2,422	821	—		22,949
Equity	$	1,075,703	59,374	38,447	344,479	118,175	166,569	124,564	(37,578	)	1,889,733
Six months ended June 30, 2014:
Revenues from unaffiliated customers	$	817,193	106,927	42,632	1,192,314	293,313	484,506	153,901	—		3,090,786
Transfers between geographic areas	42,419		4,962	10,771	11,054	13,258	19,148	9,467	(111,079	)	—
Total revenues	$	859,612	111,889	53,403	1,203,368	306,571	503,654	163,368	(111,079	)	3,090,786
Net revenues1	$	392,188	51,694	32,005	190,892	79,238	154,289	48,994	—		949,300
Operating income	$	111,678	15,376	9,535	79,375	24,298	26,594	10,790	—		277,646
Identifiable assets at period end	$	1,328,312	110,498	57,588	587,891	153,660	481,190	205,023	5,778		2,929,940
Capital expenditures	$	9,475	686	472	4,043	974	2,100	645	—		18,395
Depreciation and amortization	$	15,731	576	439	2,978	1,216	2,985	874	—		24,799
Equity	$	1,044,386	72,681	35,578	356,974	122,577	189,296	112,394	(36,749	)	1,897,137

_______________________

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,
	2015		2014		2015		2014
Total revenues	$	1,691,553	$	1,599,141	$	3,369,079	$	3,090,786
Expenses:
Airfreight services	506,988		503,213		1,019,989		986,095
Ocean freight and ocean services	433,356		423,716		878,812		791,091
Customs brokerage and other services	199,068		187,498		388,651		364,300
Net revenues	$	552,141	$	484,714	$	1,081,627	$	949,300