| Business Segment Information |
Note 8. Business Segment Information The Company is organized functionally in geographic operating segments. Accordingly, when evaluating the effectiveness of geographic segments, management focuses its attention on revenues, directly related cost of transportation and other expenses for each of the Company’s three primary sources of revenues, as well as, salaries and related costs, other operating expenses, depreciation and amortization, operating income, identifiable assets, capital expenditures and equity generated in each of these geographical areas. The President and Chief Executive Officer was determined to be the Chief Operating Decision Maker (CODM), as in his capacity he is responsible for setting company strategies and initiatives, establishing company policies, allocating company resources and assessing the performance of the Company’s business segments. Operating income is the primary measure of business segments' profit or loss that is most consistent with the measurement principles of U.S. GAAP and no items below operating income are allocated to segments. The CODM uses operating income to review financial performance, progress of the Company's strategic initiatives and to determine compensation of segment managers. Transactions among the Company’s various offices are conducted using the same arm's-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. There were no significant changes to allocate or measure expenses used to determine segment profit or loss. Financial information regarding the Company’s operations by geographic area is as follows:
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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, 2026: |
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Revenues |
|
$1,339,730 |
159,379 |
|
78,069 |
|
1,033,763 |
|
691,788 |
|
533,542 |
|
274,515 |
|
(3,137) |
|
4,107,649 |
Directly related cost of transportation
and other expenses1 |
|
$779,266 |
97,950 |
|
46,615 |
|
856,039 |
|
558,644 |
|
346,775 |
|
211,179 |
|
(2,506) |
|
2,893,962 |
Salaries and related costs |
|
$330,567 |
27,010 |
|
13,545 |
|
50,400 |
|
41,336 |
|
99,837 |
|
25,572 |
|
- |
|
588,267 |
Other operating expenses2 |
|
$(6,709) |
20,188 |
|
11,035 |
|
49,466 |
|
34,229 |
|
52,320 |
|
20,108 |
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(631) |
|
180,006 |
Operating income |
|
$236,606 |
14,231 |
|
6,874 |
|
77,858 |
|
57,579 |
|
34,610 |
|
17,656 |
|
- |
|
445,414 |
Identifiable assets at period end |
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$2,867,959 |
226,029 |
|
141,480 |
|
697,273 |
|
592,354 |
|
876,247 |
|
419,685 |
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(34,983) |
|
5,786,044 |
Capital expenditures |
|
$9,086 |
682 |
|
772 |
|
1,064 |
|
1,015 |
|
4,349 |
|
1,318 |
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- |
|
18,286 |
Depreciation and amortization |
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$7,520 |
578 |
|
276 |
|
1,211 |
|
810 |
|
2,988 |
|
797 |
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- |
|
14,180 |
Equity |
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$1,479,317 |
58,168 |
|
61,696 |
|
218,782 |
|
182,522 |
|
328,968 |
|
177,210 |
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(162,928) |
|
2,343,735 |
For the three months ended September 30, 2025: |
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Revenues |
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$928,858 |
122,842 |
|
68,098 |
|
721,353 |
|
406,104 |
|
487,889 |
|
161,835 |
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(2,228) |
|
2,894,751 |
Directly related cost of transportation
and other expenses1 |
|
$478,767 |
77,749 |
|
42,337 |
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584,631 |
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318,614 |
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318,393 |
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120,771 |
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(1,605) |
|
1,939,657 |
Salaries and related costs |
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$275,595 |
21,978 |
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11,162 |
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41,158 |
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29,957 |
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91,301 |
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19,286 |
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- |
|
490,437 |
Other operating expenses2 |
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$29,668 |
14,941 |
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8,900 |
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38,723 |
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24,478 |
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47,005 |
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13,531 |
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(631) |
|
176,615 |
Operating income |
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$144,828 |
8,174 |
|
5,699 |
|
56,841 |
|
33,055 |
|
31,190 |
|
8,247 |
|
8 |
|
288,042 |
Identifiable assets at period end |
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$2,580,473 |
192,957 |
|
104,334 |
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463,689 |
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341,607 |
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819,342 |
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292,545 |
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(15,365) |
|
4,779,582 |
Capital expenditures |
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$5,619 |
253 |
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240 |
|
812 |
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1,172 |
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1,312 |
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1,690 |
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- |
|
11,098 |
Depreciation and amortization |
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$7,818 |
506 |
|
244 |
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1,442 |
|
693 |
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2,950 |
|
595 |
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- |
|
14,248 |
Equity |
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$1,513,585 |
53,799 |
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41,622 |
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205,772 |
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133,471 |
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264,690 |
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164,295 |
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(94,596) |
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2,282,638 |
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UNITED
STATES |
OTHER
NORTH
AMERICA |
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LATIN
AMERICA |
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NORTH
ASIA |
|
SOUTH
ASIA |
|
EUROPE |
|
MIDDLE
EAST,
AFRICA
AND
INDIA |
|
ELIMI-
NATIONS |
|
CONSOLI-
DATED |
For the nine months ended September 30, 2026: |
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Revenues |
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$3,458,559 |
430,873 |
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205,245 |
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2,453,725 |
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1,683,743 |
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1,502,301 |
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666,889 |
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(8,389) |
|
10,392,946 |
Directly related cost of transportation
and other expenses1 |
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$1,936,978 |
268,568 |
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120,036 |
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2,008,461 |
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1,332,761 |
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965,376 |
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496,019 |
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(6,246) |
|
7,121,953 |
Salaries and related costs |
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$941,442 |
74,599 |
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37,627 |
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132,946 |
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110,569 |
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293,187 |
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71,166 |
|
- |
|
1,661,536 |
Other operating expenses2 |
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$29,314 |
51,627 |
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29,864 |
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125,425 |
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93,926 |
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144,969 |
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46,601 |
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(2,129) |
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519,597 |
Operating income |
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$550,825 |
36,079 |
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17,718 |
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186,893 |
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146,487 |
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98,769 |
|
53,103 |
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(14) |
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1,089,860 |
Identifiable assets at period end |
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$2,867,959 |
226,029 |
|
141,480 |
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697,273 |
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592,354 |
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876,247 |
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419,685 |
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(34,983) |
|
5,786,044 |
Capital expenditures |
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$22,894 |
1,729 |
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1,107 |
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2,146 |
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2,828 |
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9,011 |
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3,174 |
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- |
|
42,889 |
Depreciation and amortization |
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$21,906 |
1,593 |
|
770 |
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3,737 |
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2,375 |
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7,998 |
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2,371 |
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- |
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40,750 |
Equity |
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$1,479,317 |
58,168 |
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61,696 |
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218,782 |
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182,522 |
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328,968 |
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177,210 |
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(162,928) |
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2,343,735 |
For the nine months ended September 30, 2025: |
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Revenues |
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$2,660,632 |
347,455 |
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197,391 |
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2,053,146 |
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1,130,212 |
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1,360,396 |
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470,165 |
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(6,342) |
|
8,213,055 |
Directly related cost of transportation
and other expenses1 |
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$1,385,038 |
218,370 |
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119,717 |
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1,646,538 |
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877,464 |
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883,987 |
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342,862 |
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(4,287) |
|
5,469,689 |
Salaries and related costs |
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$799,702 |
61,775 |
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32,630 |
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118,205 |
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86,596 |
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261,763 |
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59,039 |
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- |
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1,419,710 |
Other operating expenses2 |
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$84,075 |
46,495 |
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28,559 |
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113,289 |
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75,880 |
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132,242 |
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43,574 |
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(2,094) |
|
522,020 |
Operating income |
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$391,817 |
20,815 |
|
16,485 |
|
175,114 |
|
90,272 |
|
82,404 |
|
24,690 |
|
39 |
|
801,636 |
Identifiable assets at period end |
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$2,580,473 |
192,957 |
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104,334 |
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463,689 |
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341,607 |
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819,342 |
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292,545 |
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(15,365) |
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4,779,582 |
Capital expenditures |
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$20,172 |
736 |
|
739 |
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5,862 |
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3,235 |
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4,396 |
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4,985 |
|
- |
|
40,125 |
Depreciation and amortization |
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$24,652 |
1,502 |
|
748 |
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3,674 |
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1,885 |
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8,387 |
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1,851 |
|
- |
|
42,699 |
Equity |
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$1,513,585 |
53,799 |
|
41,622 |
|
205,772 |
|
133,471 |
|
264,690 |
|
164,295 |
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(94,596) |
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2,282,638 |
1Directly 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. 2Other operating expenses totals rent and occupancy, depreciation and amortization, selling and promotion and other as shown in the condensed consolidated statements of earnings. |