Business Segment Information

3 Months Ended

Mar. 31, 2017

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, 2017:
Revenues from unaffiliated customers	$	426,019	59,899	22,103	566,428	147,240	231,457	91,986	—		1,545,132
Transfers between geographic areas	24,313		2,639	3,635	5,051	5,431	9,322	4,964	(55,355	)	—
Total revenues	$	450,332	62,538	25,738	571,479	152,671	240,779	96,950	(55,355	)	1,545,132
Net revenues1	$	230,785	25,793	14,916	111,833	37,995	75,958	29,731	594		527,605
Operating income	$	52,346	5,051	3,451	53,352	13,224	11,646	7,043	1		146,114
Identifiable assets at period end	$	1,536,520	106,068	50,344	514,509	122,765	379,853	188,098	4,562		2,902,719
Capital expenditures	$	5,242	234	255	1,240	373	5,078	339	—		12,761
Depreciation and amortization	$	7,753	372	320	1,320	531	1,171	460	—		11,927
Equity	$	1,192,601	51,812	27,248	371,152	105,726	118,211	119,627	(34,657	)	1,951,720
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	$	1,236,896	119,258	56,334	455,973	133,940	438,711	216,576	3,852		2,661,540
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

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.

The following table presents the calculation of consolidated net revenues:

	Three months ended
	March 31,
	2017		2016
Total revenues	$	1,545,132	$	1,418,472
Expenses:
Airfreight services	443,404		388,777
Ocean freight and ocean services	366,063		323,020
Customs brokerage and other services	208,060		189,606
Net revenues	$	527,605	$	517,069