Business Segment Information

12 Months Ended

Dec. 31, 2019

NOTE 10.

BUSINESS SEGMENT INFORMATION

Financial information regarding 2019, 2018 and 2017 operations by the Company’s designated geographic areas is as follows:

	UNITED STATES		OTHER NORTH AMERICA		LATIN AMERICA		NORTH ASIA		SOUTH ASIA		EUROPE		MIDDLE EAST, AFRICA AND INDIA		ELIMINATIONS			CONSOLIDATED
2019
Revenues¹	$	2,712,067		354,405		150,202		2,494,556		743,406		1,280,669		443,487		(3,366	)		8,175,426
Directly related cost of transportation and other expenses²	$	1,528,815		212,369		87,297		1,970,662		544,873		884,968		311,997		(2,023	)		5,538,958
Salaries and other operating expenses³	$	859,946		101,654		55,512		271,594		127,478		342,073		112,844		(1,325	)		1,869,776
Operating income	$	323,306		40,382		7,393		252,300		71,055		53,628		18,646		(18	)		766,692
Identifiable assets at period end	$	1,978,307		153,813		72,677		538,526		178,336		551,576		219,953		(1,304	)		3,691,884
Capital expenditures	$	28,666		2,353		1,556		1,767		1,558		9,231		1,891		—			47,022
Depreciation and amortization	$	31,049		1,881		1,489		5,263		1,912		7,398		1,958		—			50,950
Equity	$	1,521,059		65,100		29,148		247,725		94,727		159,308		114,726		(34,574	)		2,197,219
2018
Revenues¹	$	2,479,812		355,802		156,854		2,886,322		777,863		1,330,365		464,071		(312,724	)		8,138,365
Directly related cost of transportation and other expenses²	$	1,352,924		216,753		94,041		2,315,826		591,925		926,949		330,209		(310,635	)		5,517,992
Salaries and other operating expenses³	$	816,817		94,950		53,970		289,015		125,056		337,970		108,131		(2,099	)		1,823,810
Operating income	$	310,071		44,099		8,843		281,481		60,882		65,446		25,731		10			796,563
Identifiable assets at period end	$	1,689,950		161,604		53,542		533,071		152,646		513,744		206,367		3,635			3,314,559
Capital expenditures	$	21,732		4,259		1,042		3,057		2,182		10,815		4,387		—			47,474
Depreciation and amortization	$	33,511		1,847		1,508		5,309		2,257		7,727		1,860		—			54,019
Equity	$	1,339,673		72,941		26,007		200,371		100,706		157,003		123,228		(32,209	)		1,987,720
2017
Revenues¹	$	1,962,558		268,186		111,862		2,598,376		684,877		1,115,324		426,069		(246,304	)		6,920,948
Directly related cost of transportation and other expenses²	$	953,717		149,115		53,663		2,089,141		521,427		779,622		304,802		(249,728	)		4,601,759
Salaries and other operating expenses³	$	731,020		80,940		48,235		260,813		110,393		287,211		96,902		3,415			1,618,929
Operating income	$	277,821		38,131		9,964		248,422		53,057		48,491		24,365		9			700,260
Identifiable assets at period end	$	1,595,140		151,181		55,431		458,152		137,279		501,711		215,495		2,619			3,117,008
Capital expenditures	$	28,212		1,563		4,612		3,756		1,688		53,954		1,231		—			95,016
Depreciation and amortization	$	32,017		1,546		1,277		5,326		2,215		5,068		1,861		—			49,310
Equity	$	1,337,568		60,705		26,546		240,721		94,516		142,971		123,600		(32,254	)		1,994,373

In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation and other expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change operating income. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised.

²	Directly related cost of transportation and other expenses totals operating expenses from airfreight services, ocean freight and ocean services and customs brokerage and other services as shown in the consolidated statements of earnings.

³	Salaries and other operating expenses totals salaries and related, rent and occupancy, depreciation and amortization, selling and promotion and other as shown in the consolidated statements of earnings.

Other than the United States, only the People’s Republic of China, including Hong Kong, represented more than 10% of the Company’s total revenue, total operating income, total identifiable assets or equity in any period presented as noted in the table below.

	2019			2018			2017
Revenues		26	%		29	%		31	%
Operating income		27	%		30	%		30	%
Identifiable assets at year end		12	%		14	%		11	%
Equity		9	%		8	%		8	%