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Business Segment Information | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
Business Segment Information | Note 8. Business Segment Information The Company is organized functionally in geographic operating segments. Accordingly, management focuses its attention on revenues, directly related cost of transportation and other expenses for each of the Company’s three primary sources of revenue, salaries and other operating expenses, operating income, identifiable assets, capital expenditures 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:
|  | UNITED STATES |  |  | OTHER NORTH AMERICA |  |  | LATIN AMERICA |  |  | NORTH ASIA |  |  | SOUTH ASIA |  |  | EUROPE |  |  | MIDDLE EAST, AFRICA AND INDIA |  |  | ELIMI- NATIONS |  |  | CONSOLI- DATED |
For the three months ended September 30, 2021: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,134,096 |  |  |  | 116,404 |  |  |  | 54,303 |  |  |  | 1,690,381 |  |  |  | 538,780 |  |  |  | 564,810 |  |  |  | 221,777 |  |  |  | (1,290 | ) |  |  | 4,319,261 |
Directly related cost of transportation and other expenses1 |  | $ | 661,515 |  |  |  | 63,031 |  |  |  | 34,216 |  |  |  | 1,417,283 |  |  |  | 445,970 |  |  |  | 389,208 |  |  |  | 174,733 |  |  |  | (466 | ) |  |  | 3,185,490 |
Salaries and other operating expenses2 |  | $ | 238,943 |  |  |  | 33,077 |  |  |  | 14,759 |  |  |  | 141,109 |  |  |  | 54,003 |  |  |  | 126,475 |  |  |  | 36,598 |  |  |  | (830 | ) |  |  | 644,134 |
Operating income |  | $ | 233,638 |  |  |  | 20,296 |  |  |  | 5,328 |  |  |  | 131,989 |  |  |  | 38,807 |  |  |  | 49,127 |  |  |  | 10,446 |  |  |  | 6 |  |  |  | 489,637 |
Identifiable assets at period end |  | $ | 3,417,496 |  |  |  | 256,638 |  |  |  | 110,406 |  |  |  | 1,558,109 |  |  |  | 457,615 |  |  |  | 990,123 |  |  |  | 328,671 |  |  |  | (42,675 | ) |  |  | 7,076,383 |
Capital expenditures |  | $ | 6,001 |  |  |  | 248 |  |  |  | 175 |  |  |  | 435 |  |  |  | 351 |  |  |  | 2,254 |  |  |  | 406 |  |  |  | — |  |  |  | 9,870 |
Equity |  | $ | 2,451,584 |  |  |  | 93,084 |  |  |  | 37,087 |  |  |  | 368,535 |  |  |  | 129,941 |  |  |  | 258,805 |  |  |  | 123,304 |  |  |  | (41,748 | ) |  |  | 3,420,592 |
For the three months ended September 30, 2020: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues3 |  | $ | 686,243 |  |  |  | 77,414 |  |  |  | 39,193 |  |  |  | 795,155 |  |  |  | 259,069 |  |  |  | 359,107 |  |  |  | 133,447 |  |  |  | (915 | ) |  |  | 2,348,713 |
Directly related cost of transportation and other expenses1,3 |  | $ | 379,586 |  |  |  | 44,196 |  |  |  | 23,361 |  |  |  | 632,858 |  |  |  | 192,175 |  |  |  | 242,384 |  |  |  | 100,301 |  |  |  | (527 | ) |  |  | 1,614,334 |
Salaries and other operating expenses2 |  | $ | 197,749 |  |  |  | 25,325 |  |  |  | 12,359 |  |  |  | 81,876 |  |  |  | 39,926 |  |  |  | 96,658 |  |  |  | 28,925 |  |  |  | (384 | ) |  |  | 482,434 |
Operating income |  | $ | 108,908 |  |  |  | 7,893 |  |  |  | 3,473 |  |  |  | 80,421 |  |  |  | 26,968 |  |  |  | 20,065 |  |  |  | 4,221 |  |  |  | (4 | ) |  |  | 251,945 |
Identifiable assets at period end |  | $ | 2,336,071 |  |  |  | 163,943 |  |  |  | 76,173 |  |  |  | 689,525 |  |  |  | 231,771 |  |  |  | 642,124 |  |  |  | 228,423 |  |  |  | (9,476 | ) |  |  | 4,358,554 |
Capital expenditures |  | $ | 4,703 |  |  |  | 483 |  |  |  | 180 |  |  |  | 1,075 |  |  |  | 665 |  |  |  | 1,780 |  |  |  | 292 |  |  |  | — |  |  |  | 9,178 |
Equity |  | $ | 1,791,658 |  |  |  | 77,915 |  |  |  | 31,324 |  |  |  | 246,557 |  |  |  | 97,564 |  |  |  | 185,352 |  |  |  | 110,714 |  |  |  | (36,611 | ) |  |  | 2,504,473 |
|  | UNITED STATES |  |  | OTHER NORTH AMERICA |  |  | LATIN AMERICA |  |  | NORTH ASIA |  |  | SOUTH ASIA |  |  | EUROPE |  |  | MIDDLE EAST, AFRICA AND INDIA |  |  | ELIMI- NATIONS |  |  | CONSOLI- DATED |
For the nine months ended September 30, 2021: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues3 |  | $ | 3,007,053 |  |  |  | 311,986 |  |  |  | 146,148 |  |  |  | 4,208,811 |  |  |  | 1,306,264 |  |  |  | 1,576,092 |  |  |  | 574,469 |  |  |  | (3,649 | ) |  |  | 11,127,174 |
Directly related cost of transportation and other expenses1,3 |  | $ | 1,731,032 |  |  |  | 175,392 |  |  |  | 86,868 |  |  |  | 3,471,453 |  |  |  | 1,051,133 |  |  |  | 1,072,973 |  |  |  | 444,132 |  |  |  | (1,576 | ) |  |  | 8,031,407 |
Salaries and other operating expenses2 |  | $ | 718,762 |  |  |  | 90,114 |  |  |  | 41,871 |  |  |  | 354,841 |  |  |  | 146,214 |  |  |  | 359,338 |  |  |  | 100,899 |  |  |  | (2,069 | ) |  |  | 1,809,970 |
Operating income |  | $ | 557,259 |  |  |  | 46,480 |  |  |  | 17,409 |  |  |  | 382,517 |  |  |  | 108,917 |  |  |  | 143,781 |  |  |  | 29,438 |  |  |  | (4 | ) |  |  | 1,285,797 |
Identifiable assets at period end |  | $ | 3,417,496 |  |  |  | 256,638 |  |  |  | 110,406 |  |  |  | 1,558,109 |  |  |  | 457,615 |  |  |  | 990,123 |  |  |  | 328,671 |  |  |  | (42,675 | ) |  |  | 7,076,383 |
Capital expenditures |  | $ | 11,931 |  |  |  | 434 |  |  |  | 300 |  |  |  | 1,192 |  |  |  | 1,462 |  |  |  | 7,908 |  |  |  | 1,573 |  |  |  | — |  |  |  | 24,800 |
Equity |  | $ | 2,451,584 |  |  |  | 93,084 |  |  |  | 37,087 |  |  |  | 368,535 |  |  |  | 129,941 |  |  |  | 258,805 |  |  |  | 123,304 |  |  |  | (41,748 | ) |  |  | 3,420,592 |
For the nine months ended September 30, 2020: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues3 |  | $ | 1,975,874 |  |  |  | 232,324 |  |  |  | 114,637 |  |  |  | 2,277,027 |  |  |  | 642,302 |  |  |  | 1,024,127 |  |  |  | 340,000 |  |  |  | (2,733 | ) |  |  | 6,603,558 |
Directly related cost of transportation and other expenses1,3 |  | $ | 1,108,164 |  |  |  | 130,300 |  |  |  | 69,828 |  |  |  | 1,792,933 |  |  |  | 463,690 |  |  |  | 692,872 |  |  |  | 248,088 |  |  |  | (1,423 | ) |  |  | 4,504,452 |
Salaries and other operating expenses2 |  | $ | 631,396 |  |  |  | 74,320 |  |  |  | 36,220 |  |  |  | 236,480 |  |  |  | 109,018 |  |  |  | 274,269 |  |  |  | 80,063 |  |  |  | (1,286 | ) |  |  | 1,440,480 |
Operating income |  | $ | 236,314 |  |  |  | 27,704 |  |  |  | 8,589 |  |  |  | 247,614 |  |  |  | 69,594 |  |  |  | 56,986 |  |  |  | 11,849 |  |  |  | (24 | ) |  |  | 658,626 |
Identifiable assets at period end |  | $ | 2,336,071 |  |  |  | 163,943 |  |  |  | 76,173 |  |  |  | 689,525 |  |  |  | 231,771 |  |  |  | 642,124 |  |  |  | 228,423 |  |  |  | (9,476 | ) |  |  | 4,358,554 |
Capital expenditures |  | $ | 28,276 |  |  |  | 1,692 |  |  |  | 498 |  |  |  | 1,785 |  |  |  | 1,035 |  |  |  | 3,418 |  |  |  | 715 |  |  |  | — |  |  |  | 37,419 |
Equity |  | $ | 1,791,658 |  |  |  | 77,915 |  |  |  | 31,324 |  |  |  | 246,557 |  |  |  | 97,564 |  |  |  | 185,352 |  |  |  | 110,714 |  |  |  | (36,611 | ) |  |  | 2,504,473 |
1 | 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 condensed consolidated statements of earnings.
2 | Salaries and other operating expenses totals salaries and related, rent and occupancy, depreciation and amortization, selling and promotion and other as shown in the condensed consolidated statements of earnings.
3 | See Note 9 - Correction of Immaterial Errors.
The Company’s consolidated financial results in the three and nine months ended September 30, 2021 and 2020 were each significantly impacted by the effects of the global pandemic in divergent ways. In all quarters of 2021, the Company experienced strong volumes and high average sell and buy rates as a result of imbalances between demand and carrier capacity and continuing effects of disruptions in supply chains originating in measures to combat the pandemic in 2020. This is in contrast with slower activity in North Asia in the first quarter of 2020 as the pandemic resulted in temporary closures and limited operations in the Company’s China offices. Shipments were also rerouted or delayed by customers and service providers as they were taking their own precautionary measures. This was followed by significant increases in airfreight services revenues and related expenses, in the second and third quarters of 2020, as a result of demand for time-sensitive delivery of technology equipment and medical equipment and supplies from China, which combined with reductions in airfreight supply resulted in significantly higher average buy and sell rates. These impacts are affecting all of the Company’s geographical segments and most notably the year-over-year comparability of the North Asia segment. For the three months ended September 30, 2021 and 2020, the People's Republic of China, including Hong Kong, represented 32% and 27%, respectively, of the Company’s total revenues and 21% and 26%, respectively, of the total operating income. For the nine months ended September 30, 2021 and 2020, the People's Republic of China, including Hong Kong, represented 30% and 28%, respectively, of the Company’s total revenues and 23% and 30%, respectively, of the total operating income.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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