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. 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. Certain costs are allocated among the segments based on the relative value of the underlying services, which can include allocation based on actual costs incurred or estimated cost plus a profit margin.

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 March 31, 2019:
Revenues from unaffiliated customers	$	681,424		85,103	35,949		617,000	171,930	320,049		108,596	—		2,020,051
Transfers between geographic areas ²	(21,640		)	6,307	(1,770	)	15,853	5,249	(7,359	)	4,079	(719	)	—
Total revenues	$	659,784		91,410	34,179		632,853	177,179	312,690		112,675	(719	)	2,020,051
Net revenues¹	$	292,429		35,169	15,063		134,207	47,369	96,795		33,172	(90	)	654,114
Operating income	$	74,013		10,960	2,636		65,780	15,907	13,952		4,361	(8	)	187,601
Identifiable assets at period end	$	1,906,278		175,034	71,168		511,589	174,512	579,924		234,195	(9,788	)	3,642,912
Capital expenditures	$	6,915		228	93		344	176	982		697	—		9,435
Depreciation and amortization	$	8,222		467	432		1,407	536	1,831		498	—		13,393
Equity	$	1,401,450		82,170	28,581		238,518	114,290	165,718		126,953	(32,246	)	2,125,434
Three months ended March 31, 2018:
Revenues from unaffiliated customers	$	534,869		76,525	32,722		630,572	168,600	305,792		105,182	—		1,854,262
Transfers between geographic areas	28,881			3,562	3,387		6,017	6,550	14,188		5,355	(67,940	)	—
Total revenues	$	563,750		80,087	36,109		636,589	175,150	319,980		110,537	(67,940	)	1,854,262
Net revenues¹	$	277,185		30,447	14,745		137,208	44,406	98,635		33,201	11		635,838
Operating income	$	69,648		9,018	2,370		69,923	15,132	19,278		7,438	11		192,818
Identifiable assets at period end	$	1,558,181		165,368	55,036		542,965	153,411	533,012		208,173	(3,665	)	3,212,481
Capital expenditures	$	3,171		1,528	505		784	329	7,191		288	—		13,796
Depreciation and amortization	$	8,765		398	368		1,376	583	1,976		456	—		13,922
Equity	$	1,247,522		68,050	27,226		278,651	105,642	160,038		128,487	(33,350	)	1,982,266

¹Net revenues are a non-GAAP measure calculated as revenues less directly related operating 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.

²During the quarter ended March 31, 2019, the Company revised the process used to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation expenses for freight service transactions between Company origin and destination locations. There were no changes for services rendered at the origin, such as pick-up and delivery to port, nor for services rendered at the destination, such as customs clearance and final delivery. The change in process had no impact on reported segment net revenues or operating income nor on reported consolidated revenues or expenses. Prior year segment revenues have not been revised.

The following table presents the calculation of consolidated net revenues:



	Three months ended
	March 31,
	2019		2018
Total revenues	$	2,020,051	$	1,854,262
Expenses:
Airfreight services	509,210		513,504
Ocean freight and ocean services	420,331		379,418
Customs brokerage and other services	436,396		325,502
Net revenues	$	654,114	$	635,838