In November 2001, the FASB staff issued Topic D-103 (subsequently recharacterized as EITF 01-14), “Income Statement Characterization of Reimbursements Received for ‘Out of Pocket’ Expenses Incurred.” This staff announcement clarified certain provi- sions of EITF 99-19 “Reporting Revenue Gross as a Principal versus Net as an Agent,” and among other things established when reimbursements are required to be shown gross as opposed to net. EITF 01-14 also directed that the new rules should be applied in financial reporting periods beginning after December 15, 2001. The clarifying rules now require the Company to henceforth report certain reimbursed incidental activities on a gross rather than net basis. The Company has reclassified amounts in the 2001 and 2000 presentations to conform with the current presentation. The following schedule shows the financial statement impact of the adoption by comparing the net amounts in the report on Form 10K filed on or about March 29, 2002, with the gross amounts reported in this annual report. There is no impact on net revenue, nor is there any impact on operating income or net earnings as a result of this change. For the years ended December 31, 2001 2000 Net Gross Net Gross Revenues: Airfreight $ 930,998 971,980  1,014,375 1,053,461 Ocean freight and ocean services 508,482 590,684 472,853 542,411 Customs brokerage and import services 213,153 320,406 207,953 310,854 Total Revenues 1,652,633 1,883,070 1,695,181 1,906,726 Costs: Airfreight 676,496 717,478 788,947 828,033 Ocean freight and ocean services 369,601 451,803 357,879 427,437 Customs brokerage and import services – 107,253 – 102,901 Total Costs 1,046,097 1,276,534 1,146,826 1,358,371 Net Revenues $ 606,536 606,536 548,355 548,355 73 expd 02 MD&A