Business Segment Information

3 Months Ended

Mar. 31, 2016

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. 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, 2016:
Revenues from unaffiliated customers	$	407,826	52,106	20,064	497,232	136,418	221,897	82,929	—		1,418,472
Transfers between geographic areas	26,034		2,700	3,601	5,096	5,806	10,361	5,394	(58,992	)	—
Total revenues	$	433,860	54,806	23,665	502,328	142,224	232,258	88,323	(58,992	)	1,418,472
Net revenues1	$	220,698	27,378	13,733	110,791	39,518	74,541	30,407	3		517,069
Operating income	$	48,205	7,291	3,852	55,218	15,691	12,253	9,313	3		151,826
Identifiable assets at period end	$	1,255,099	119,258	56,334	455,973	133,940	438,711	216,576	3,852		2,679,743
Capital expenditures	$	8,137	311	485	1,085	655	2,119	1,243	—		14,035
Depreciation and amortization	$	7,332	364	253	1,319	512	1,098	451	—		11,329
Equity	$	978,426	79,312	37,325	300,188	115,606	167,726	137,112	(33,184	)	1,782,511
Three months ended March 31, 2015:
Revenues from unaffiliated customers	$	444,181	54,794	24,081	645,444	181,381	242,086	85,559	—		1,677,526
Transfers between geographic areas	27,675		2,814	4,777	5,697	5,915	9,637	5,067	(61,582	)	—
Total revenues	$	471,856	57,608	28,858	651,141	187,296	251,723	90,626	(61,582	)	1,677,526
Net revenues1	$	219,603	30,678	16,559	117,405	42,200	75,888	27,153	—		529,486
Operating income	$	59,181	11,091	5,356	57,056	13,880	15,071	7,248	—		168,883
Identifiable assets at period end	$	1,451,103	109,180	57,232	541,983	143,910	430,338	198,954	11,078		2,943,778
Capital expenditures	$	6,325	288	617	290	319	1,148	458	—		9,445
Depreciation and amortization	$	7,393	292	268	1,399	530	1,246	401	—		11,529
Equity	$	1,182,808	58,998	34,604	306,775	106,139	154,343	120,086	(36,222	)	1,927,531

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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
	March 31,
	2016		2015
Total revenues	$	1,418,472	$	1,677,526
Expenses:
Airfreight services	388,777		513,001
Ocean freight and ocean services	323,020		445,456
Customs brokerage and other services	189,606		189,583
Net revenues	$	517,069	$	529,486