Results of Operations The following table shows the consolidated net revenues (revenues less transportation expenses) attributable to the Company’s principal services and the Company’s expenses for 2002, 2001, and 2000, expressed as percentages of net revenues. Management believes that net revenues are a better measure than total revenues of the relative importance of the Company’s principal services since total revenues earned by the Company as a freight consolidator include the carriers’ charges to the Company for carrying the shipment whereas revenues earned by the Company in its other capacities include only the commissions and fees actually earned by the Company. 2002 2001 2000 Percent Percent Percent of Net of Net of Net In thousands Amount Revenues Amount Revenues Amount Revenues Net Revenues: Airfreight $ 284,954 42% $ 254,502 42% $ 225,428 41% Ocean freight and ocean services 164,114 24 138,881 23 114,974 21 Customs brokerage and import services 233,145 34 213,153 35 207,953 38 Net revenues 682,213 100 606,536 100 548,355 100 Operating Expenses: Salaries and related costs 359,769 53 325,545 54 290,581 53 Other 151,435 22 134,974 22 130,250 24 Total operating expenses 511,204 75 460,519 76 420,831 77 Operating income 171,009 25 146,017 24 127,524 23 Other income, net 6,981 1 8,277 1 5,824 1 Earnings before income taxes 177,990 26 154,294 25 133,348 24 Income tax expense 65,461 10 57,051 9 50,313 9 Net earnings $ 112,529 16% $ 97,243 16% $ 83,035 15% 75 expd 02 MD&A