Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 15, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-23189 | ||
Entity Registrant Name | C.H. ROBINSON WORLDWIDE, INC. | ||
Entity Central Index Key | 0001043277 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 41-1883630 | ||
Entity Address, Address Line One | 14701 Charlson Road | ||
Entity Address, City or Town | Eden Prairie | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55347 | ||
City Area Code | 952 | ||
Local Phone Number | 937-8500 | ||
Title of 12(b) Security | Common Stock, par value $0.10 per share | ||
Trading Symbol | CHRW | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 12,646,143,071 | ||
Entity Common Stock, Shares Outstanding | 116,510,428 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement relating to its 2023 Annual Meeting of Stockholders (the “Proxy Statement”) are incorporated by reference in Part III. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Firm ID | 34 |
Auditor Location | Minneapolis, Minnesota |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 217,482 | $ 257,413 |
Receivables, net of allowance for credit loss of $28,749 and $41,542 | 2,991,753 | 3,963,487 |
Contract assets, net of allowance for credit loss | 257,597 | 453,660 |
Prepaid expenses and other | 122,406 | 129,593 |
Total current assets | 3,589,238 | 4,804,153 |
Property and equipment | 449,828 | 442,112 |
Accumulated depreciation and amortization | (290,396) | (302,281) |
Net property and equipment | 159,432 | 139,831 |
Goodwill | 1,470,813 | 1,484,754 |
Other intangible assets, net of accumulated amortization of $106,932 and $88,302 | 64,026 | 89,606 |
Right-of-use lease assets | 372,141 | 292,559 |
Deferred tax assets | 181,602 | 124,900 |
Other assets | 117,312 | 92,309 |
Total assets | 5,954,564 | 7,028,112 |
Current liabilities: | ||
Accounts payable | 1,466,998 | 1,813,473 |
Outstanding checks | 103,561 | 105,828 |
Accrued expenses: | ||
Compensation | 242,605 | 201,421 |
Transportation expense | 199,092 | 342,778 |
Income taxes | 15,210 | 100,265 |
Other accrued liabilities | 168,009 | 171,266 |
Current lease liabilities | 73,722 | 66,311 |
Current portion of debt | 1,053,655 | 525,000 |
Total current liabilities | 3,322,852 | 3,326,342 |
Long-term debt | 920,049 | 1,393,649 |
Noncurrent lease liabilities | 313,742 | 241,369 |
Noncurrent income taxes payable | 28,317 | 28,390 |
Deferred tax liabilities | 14,256 | 16,113 |
Other long-term liabilities | 1,926 | 315 |
Total liabilities | 4,601,142 | 5,006,178 |
Commitments and contingencies | ||
Stockholders’ investment: | ||
Preferred stock, $0.10 par value, 20,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.10 par value, 480,000 shares authorized; 179,204 and 179,206 shares issued, 116,323 and 129,186 outstanding | 11,632 | 12,919 |
Additional paid-in capital | 743,288 | 673,628 |
Retained earnings | 5,590,440 | 4,936,861 |
Accumulated other comprehensive loss | (88,860) | (61,134) |
Treasury stock at cost (62,881 and 50,020 shares) | (4,903,078) | (3,540,340) |
Total stockholders’ investment | 1,353,422 | 2,021,934 |
Total liabilities and stockholders’ investment | $ 5,954,564 | $ 7,028,112 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 28,749 | $ 41,542 |
Other intangible assets, accumulated amortization | $ 106,932 | $ 88,302 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, authorized (in shares) | 480,000,000 | 480,000,000 |
Common stock, issued (in shares) | 179,204,000 | 179,206,000 |
Common stock, outstanding (in shares) | 116,323,000 | 129,186,000 |
Treasury stock (in shares) | 62,881,000 | 50,020,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Total revenues | $ 24,696,625 | $ 23,102,138 | $ 16,207,106 |
Costs and expenses: | |||
Personnel expenses | 1,722,980 | 1,543,610 | 1,242,867 |
Other selling, general, and administrative expenses | 603,415 | 526,371 | 496,122 |
Total costs and expenses | 23,429,843 | 22,020,030 | 15,533,838 |
Income from operations | 1,266,782 | 1,082,108 | 673,268 |
Interest and other expenses | (100,017) | (59,817) | (44,937) |
Income before provision for income taxes | 1,166,765 | 1,022,291 | 628,331 |
Provision for income taxes | 226,241 | 178,046 | 121,910 |
Net income | 940,524 | 844,245 | 506,421 |
Other comprehensive (loss) income | (27,726) | (15,136) | 30,151 |
Comprehensive income | $ 912,798 | $ 829,109 | $ 536,572 |
Basic net income per share (in dollars per share) | $ 7.48 | $ 6.37 | $ 3.74 |
Diluted net income per share (in dollars per share) | $ 7.40 | $ 6.31 | $ 3.72 |
Basic weighted average shares outstanding (in shares) | 125,743 | 132,482 | 135,532 |
Dilutive effect of outstanding stock awards (in shares) | 1,407 | 1,352 | 641 |
Diluted weighted average shares outstanding (in shares) | 127,150 | 133,834 | 136,173 |
Transportation | |||
Revenues: | |||
Total revenues | $ 23,516,384 | $ 22,046,574 | $ 15,147,562 |
Costs and expenses: | |||
Purchased services and products | 20,035,715 | 18,994,574 | 12,834,608 |
Sourcing | |||
Revenues: | |||
Total revenues | 1,180,241 | 1,055,564 | 1,059,544 |
Costs and expenses: | |||
Purchased services and products | $ 1,067,733 | $ 955,475 | $ 960,241 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' INVESTMENT - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | $ 2,021,934 | $ 1,879,933 | $ 1,670,730 |
Net income | 940,524 | 844,245 | 506,421 |
Foreign currency adjustments | (27,726) | (15,136) | 30,151 |
Dividends declared | (286,945) | (280,217) | (278,422) |
Stock issued for employee benefit plans | 71,671 | 43,949 | 89,803 |
Issuance of restricted stock | 0 | 0 | |
Stock-based compensation expense | 90,677 | 129,977 | 43,995 |
Repurchase of common stock | (1,456,713) | (580,817) | (182,745) |
Ending Balance | $ 1,353,422 | $ 2,021,934 | $ 1,879,933 |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance (in shares) | 129,186 | 134,298 | 134,895 |
Beginning Balance | $ 12,919 | $ 13,430 | $ 13,490 |
Stock issued for employee benefit plans (in shares) | 1,364 | 1,068 | 1,754 |
Stock issued for employee benefit plans | $ 136 | $ 107 | $ 175 |
Issuance of restricted stock (in shares) | (26) | 192 | |
Issuance of restricted stock | $ (3) | $ 19 | |
Stock-based compensation expense (in shares) | 0 | 0 | 0 |
Stock-based compensation expense | $ 0 | $ 0 | $ 0 |
Repurchase of common stock (in shares) | (14,227) | (6,154) | (2,543) |
Repurchase of common stock | $ (1,423) | $ (615) | $ (254) |
Ending Balance (in shares) | 116,323 | 129,186 | 134,298 |
Ending Balance | $ 11,632 | $ 12,919 | $ 13,430 |
Additional Paid-in Capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 673,628 | 566,022 | 546,646 |
Stock issued for employee benefit plans | (21,017) | (22,374) | (24,600) |
Issuance of restricted stock | 3 | (19) | |
Stock-based compensation expense | 90,677 | 129,977 | 43,995 |
Ending Balance | 743,288 | 673,628 | 566,022 |
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 4,936,861 | 4,372,833 | 4,144,834 |
Net income | 940,524 | 844,245 | 506,421 |
Dividends declared | (286,945) | (280,217) | (278,422) |
Ending Balance | 5,590,440 | 4,936,861 | 4,372,833 |
Accumulated Other Comprehensive Loss | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (61,134) | (45,998) | (76,149) |
Foreign currency adjustments | (27,726) | (15,136) | 30,151 |
Ending Balance | (88,860) | (61,134) | (45,998) |
Treasury Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (3,540,340) | (3,026,354) | (2,958,091) |
Stock issued for employee benefit plans | 92,552 | 66,216 | 114,228 |
Stock-based compensation expense | 0 | 0 | 0 |
Repurchase of common stock | (1,455,290) | (580,202) | (182,491) |
Ending Balance | $ (4,903,078) | $ (3,540,340) | $ (3,026,354) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' INVESTMENT (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (in dollars per share) | $ 2.26 | $ 2.08 | $ 2.04 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | |||
Net income | $ 940,524 | $ 844,245 | $ 506,421 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 92,776 | 91,259 | 101,727 |
Provision for credit losses | (4,476) | 10,649 | 17,281 |
Stock-based compensation | 90,677 | 129,977 | 43,995 |
Deferred income taxes | (58,566) | (110,188) | (32,984) |
Excess tax benefit on stock-based compensation | (13,662) | (13,101) | (17,581) |
Other operating activities | (6,627) | 1,915 | 15,096 |
Changes in operating elements, net of effects of acquisitions: | |||
Receivables | 923,524 | (1,547,545) | (452,145) |
Contract assets | 197,097 | (257,728) | (65,454) |
Prepaid expenses and other | (28,495) | (43,819) | 27,237 |
Accounts payable and outstanding checks | (307,266) | 660,028 | 180,272 |
Accrued compensation | 42,266 | 63,912 | 22,547 |
Accrued transportation expense | (143,686) | 189,204 | 52,380 |
Accrued income taxes | (69,817) | 72,665 | 51,916 |
Other accrued liabilities | 2,371 | 1,607 | 26,503 |
Other assets and liabilities | (6,469) | 1,875 | 21,980 |
Net cash provided by operating activities | 1,650,171 | 94,955 | 499,191 |
INVESTING ACTIVITIES | |||
Purchases of property and equipment | (61,915) | (34,197) | (23,133) |
Purchases and development of software | (66,582) | (36,725) | (30,876) |
Acquisitions, net of cash acquired | 0 | (14,750) | (223,230) |
Proceeds from sale of property and equipment | 63,579 | 0 | 5,525 |
Net cash used for investing activities | (64,918) | (85,672) | (271,714) |
FINANCING ACTIVITIES | |||
Proceeds from stock issued for employee benefit plans | 100,059 | 70,669 | 107,657 |
Stock tendered for payment of withholding taxes | (28,388) | (26,720) | (17,854) |
Repurchase of common stock | (1,459,900) | (581,756) | (177,514) |
Cash dividends | (285,317) | (277,321) | (209,956) |
Proceeds from long-term borrowings | 200,000 | 300,000 | 0 |
Payments on long-term borrowings | 0 | (2,048) | 0 |
Proceeds from short-term borrowings | 4,500,000 | 3,728,000 | 1,436,600 |
Payments on short-term borrowings | (4,646,000) | (3,203,251) | (1,579,600) |
Net cash (used for) provided by financing activities | (1,619,546) | 7,573 | (440,667) |
Effect of exchange rates on cash and cash equivalents | (5,638) | (3,239) | 9,128 |
Net change in cash and cash equivalents | (39,931) | 13,617 | (204,062) |
Cash and cash equivalents, beginning of year | 257,413 | 243,796 | 447,858 |
Cash and cash equivalents, end of year | 217,482 | 257,413 | 243,796 |
Supplemental cash flow disclosures | |||
Cash paid for income taxes | 429,096 | 227,427 | 93,070 |
Cash paid for interest | 71,563 | 51,367 | 47,518 |
Accrued share repurchases held in other accrued liabilities | $ 1,106 | $ 4,293 | $ 5,231 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION. C.H. Robinson Worldwide, Inc., and our subsidiaries (“the company,” “we,” “us,” or “our”) are a global provider of transportation services and logistics solutions through a network of offices operating in North America, Europe, Asia, Oceania, and South America. The consolidated financial statements include the accounts of C.H. Robinson Worldwide, Inc., and our majority owned and controlled subsidiaries. Our minority interests in subsidiaries are not significant. All intercompany transactions and balances have been eliminated in the consolidated financial statements. USE OF ESTIMATES. The preparation of financial statements, in conformity with accounting principles generally accepted in the U.S., requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best information available, and our actual results could differ materially from those estimates. REVENUE RECOGNITION. At contract inception, we assess the goods and services promised in our contracts with customers and identify our performance obligations to provide distinct goods and services to our customers. We have determined that the following distinct goods and services represent our primary performance obligations. Transportation and Logistics Services - As a global logistics provider, our primary performance obligation under our customer contracts is to utilize our relationships with a wide variety of transportation companies to efficiently and cost-effectively transport our customers’ freight. Revenue is recognized for these performance obligations as they are satisfied over the contract term, which generally represents the transit period. The transit period can vary based upon the method of transport, generally a number of days for over the road, rail, and air transportation, or several weeks in the case of an ocean shipment. Determining the transit period and how much of it has been completed as of the reporting date may require management to make judgments that affect the timing of revenue recognized. When the customer’s freight reaches its intended destination our performance obligation is complete. Pricing for our services is generally a fixed amount and is typically due within 30 days upon completion of our performance obligation, but can vary based on the nature of the service provided and certain other factors . We also provide certain value-added logistics services, such as customs brokerage, fee-based managed services, warehousing services, small parcel, and supply chain consulting and optimization services. These services may include one or more performance obligations, which are generally satisfied over the service period as we perform our obligations. The service period may be a very short duration, in the case of customs brokerage and small parcel, or it may be longer in the case of warehousing, managed services, and supply chain consulting and optimization services. Pricing for our services is established in the customer contract and is dependent upon the specific needs of the customer but may be agreed upon at a fixed fee per transaction, labor hour, or service period. Payment is typically due within 30 days upon completion of our performance obligation, but can vary based on the nature of the service provided and certain other factors. Sourcing Services - We contract with grocery retailers, restaurants, foodservice distributors, and produce wholesalers to provide sourcing services under the trade name Robinson Fresh ® (“Robinson Fresh”). Our primary service obligation under these contracts is the buying, selling, and/or marketing of produce including fresh fruits, vegetables, and other value-added perishable items. Revenue is recognized when our performance obligations under these contracts are satisfied at a point in time, generally when the produce is received by our customer. Pricing under these contracts is generally a fixed amount and is typically due within 20 to 30 days upon completion of our performance obligation, but can vary based on the nature of the service provided and certain other factors. In many cases, as additional performance obligations, we contract to arrange logistics and transportation of the products we buy, sell, and/or market. These performance obligations are satisfied over the contract term consistent with our other transportation and logistics services. The contract period is typically less than one year. Pricing for our services is generally a fixed amount and is typically due within 30 days upon completion of our performance obligation, but can vary based on the nature of the service provided and certain other factors. Total revenues represent the total dollar value of revenue recognized from contracts with customers for the goods and services we provide. Substantially all of our revenues are attributable to contracts with our customers. Our adjusted gross profits are our total revenues less purchased transportation and related services, including contracted motor carrier, rail, ocean, air, and other costs, and the purchase price and services related to the products we source. Most transactions in our transportation and sourcing businesses are recorded at the gross amount we charge our customers for the services we provide and goods we sell. In these transactions, we are primarily responsible for fulfilling the promise to provide the specified good or service to our customers and we have discretion in establishing the price for the specified good or service. Additionally, in our sourcing business, in some cases, we take inventory risk before the specified good has been transferred to our customer. Customs brokerage, managed services, freight forwarding, and sourcing managed procurement transactions are recorded at the net amount we charge our customers for the services we provide because many of the factors stated above are not present. CONTRACT ASSETS. Contract assets represent amounts for which we have the right to consideration for the services we have provided while a shipment is still in-transit but for which we have not yet completed our performance obligations or have not yet invoiced our customer. Upon completion of our performance obligations, which can vary in duration based upon the method of transport, and billing our customer, these amounts become classified within accounts receivable and are then typically due within 30 days. ACCRUED TRANSPORTATION EXPENSE. Accrued transportation expense represents amounts we owe to vendors, primarily transportation providers, for the services they have provided while a shipment is still in-transit as of the reporting date. ALLOWANCE FOR CREDIT LOSSES. Accounts receivable and contract assets are reduced by an allowance for expected credit losses. We determine our allowance for expected credit losses by evaluating two approaches that consider our past credit loss experience, our customers' credit ratings, and other customer-specific and macroeconomic factors. The first approach is pooling our customers by credit rating and applying an expected loss ratio based upon credit rating and number of days the receivable has been outstanding (i.e., aging approach). The second approach is to compute an expected loss ratio for each credit rating pool based upon our historical write-off experience and apply it to our accounts receivable (i.e., loss ratio approach). These two approaches are evaluated in consideration of other known information and customer-specific and macroeconomic factors, including the price of diesel fuel, for purposes of determining the expected credit loss allowance. FOREIGN CURRENCY. Most balance sheet accounts of foreign subsidiaries are remeasured at the current exchange rate as of the end of the year and translated to our U.S. Dollar reporting currency. Translation adjustments are recorded in other comprehensive (loss) income. Statement of operations items are translated at the average exchange rate during the year. CASH AND CASH EQUIVALENTS. Cash and cash equivalents consist primarily of bank deposits and highly liquid investments with an original maturity of three months or less from the time of purchase. Cash and cash equivalents held outside the U.S. totaled $204.7 million and $217.1 million as of December 31, 2022 and 2021, respectively. Approximately half of our cash and cash equivalents balance is denominated in U.S. Dollars although these balances are frequently held in locations where the U.S. Dollar is not the functional currency. PREPAID EXPENSES AND OTHER. Prepaid expenses and other includes items such as software maintenance contracts, prepaid insurance premiums, other prepaid operating expenses, and inventories, consisting primarily of produce and related products held for resale. RIGHT-OF-USE LEASE ASSETS. Right-of-use lease assets are recognized upon lease commencement and represent our right to use an underlying asset for the lease term. LEASE LIABILITIES. Lease liabilities are recognized at commencement date and represent our obligation to make the lease payments arising from a lease, measured on a discounted basis. PROPERTY AND EQUIPMENT. Property and equipment are recorded at cost. Maintenance and repair expenditures are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated life of the asset. Amortization of leasehold improvements is computed over the shorter of the lease term or the estimated useful life of the improvement. We recognized the following depreciation expense (in thousands): 2022 $ 38,102 2021 39,790 2020 42,890 A summary of our property and equipment as of December 31 is as follows (in thousands): 2022 2021 Furniture, fixtures, and equipment $ 266,017 $ 292,224 Buildings (1) 60,766 60,059 Corporate aircraft (1) 23,760 — Leasehold improvements 78,347 70,630 Land 11,005 11,014 Construction in progress 9,933 8,185 Less: accumulated depreciation and amortization (290,396) (302,281) Net property and equipment $ 159,432 $ 139,831 ________________________________ (1) Our corporate aircraft and an office building in Kansas City, Missouri, were reclassified as held-for-sale assets as of December 31, 2021. These held-for-sale assets of $35.0 million were sold in 2022 and were included within Prepaid expenses and other current assets in our Consolidated Balance Sheets as of December 31, 2021. The fair value of the assets that were held for sale was $64.0 million. GOODWILL. Goodwill represents the excess of the cost of acquired businesses over the net of the fair value of identifiable tangible assets and identifiable intangible assets purchased and liabilities assumed. Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis (November 30 for us) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. See Note 2, Goodwill and Other Intangible Assets . OTHER INTANGIBLE ASSETS. Other intangible assets include definite-lived customer lists, trademarks, non-competition agreements, and indefinite-lived trademarks. The definite-lived intangible assets are being amortized using the straight-line method over their estimated lives. Definite-lived intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The indefinite-lived trademarks are not amortized. Indefinite-lived intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, or annually, at a minimum. See Note 2, Goodwill and Other Intangible Assets . OTHER ASSETS. Other assets consist primarily of purchased and internally developed software. We amortize software when it is put into service using the straight-line method over three years. We recognized the following amortization expense of purchased and internally developed software (in thousands): 2022 $ 31,229 2021 25,975 2020 22,612 A summary of our purchased and internally developed software as of December 31, is as follows (in thousands): 2022 2021 Purchased software $ 8,930 $ 30,312 Internally developed software 164,092 153,983 Less accumulated amortization (84,222) (114,183) Net software $ 88,800 $ 70,112 INCOME TAXES. Income taxes are accounted for using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities using enacted rates. Annual tax provisions include amounts considered sufficient to pay assessments that may result from examination of prior year tax returns; however, the amount ultimately paid upon resolution of issues raised may differ from the amounts accrued. The financial statement benefits of an uncertain income tax position are recognized when more likely than not, based on the technical merits, the position will be sustained upon examination. Unrecognized tax benefits are, more likely than not, owed to a taxing authority, and the amount of the contingency can be reasonably estimated. Uncertain income tax positions are included in “Accrued income taxes” or “Noncurrent income taxes payable” in the consolidated balance sheets. COMPREHENSIVE INCOME (LOSS). Comprehensive income (loss) consists primarily of foreign currency translation adjustments. It is presented on our consolidated statements of operations and comprehensive income. STOCK-BASED COMPENSATION. We have issued stock awards, including stock options, performance-based restricted shares, performance-based restricted stock units, and time-based restricted stock units to certain key employees. The awards vest over three For grants of stock options, we use the Black-Scholes option pricing model to estimate the fair value of these share-based payment awards. The determination of the fair value of stock options is affected by our stock price and a number of assumptions, including expected volatility, expected term, risk-free interest rate, and dividend yield. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The change in the carrying amount of goodwill is as follows (in thousands): NAST Global Forwarding All Other and Corporate Total December 31, 2020 balance $ 1,203,972 $ 213,982 $ 69,233 $ 1,487,187 Acquisitions 243 — 10,754 10,997 Foreign currency translation (7,882) (3,591) (1,957) (13,430) December 31, 2021 balance 1,196,333 210,391 78,030 1,484,754 Foreign currency translation (8,257) (4,202) (1,482) (13,941) December 31, 2022 balance $ 1,188,076 $ 206,189 $ 76,548 $ 1,470,813 Goodwill is tested at least annually for impairment on November 30, or more frequently if events or changes in circumstances indicate that the asset might be impaired. We first perform a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting units is less than their respective carrying value (“Step Zero Analysis”). If the Step Zero Analysis indicates it is more likely than not that the fair value of our reporting units is less than their respective carrying value, an additional impairment assessment is performed (“Step One Analysis”). As part of our annual Step Zero Analysis performed in 2022, we determined that due to certain qualitative factors and the recent performance of our Europe Surface Transportation reporting unit that the more likely than not criteria had been met, and therefore a Step One Analysis was completed for this reporting unit. Our Step Zero Analysis did not indicate that the more likely than not criteria was met for any other reporting units and therefore a Step One Analysis was not completed for those reporting units. As a result of our Step One Analysis for Europe Surface Transportation, we determined that the fair value was greater than the reporting unit's respective carrying value and as such the goodwill balance was not impaired. No goodwill or intangible asset impairment has been recorded in any previous or current period presented. Identifiable intangible assets consisted of the following as of December 31 (in thousands): 2022 2021 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Finite-lived intangibles Customer relationships $ 162,358 $ (106,932) $ 55,426 $ 169,308 $ (88,302) $ 81,006 Total finite-lived intangibles 162,358 (106,932) 55,426 169,308 (88,302) 81,006 Indefinite-lived intangibles Trademarks 8,600 — 8,600 8,600 — 8,600 Total intangibles $ 170,958 $ (106,932) $ 64,026 $ 177,908 $ (88,302) $ 89,606 Amortization expense for other intangible assets was (in thousands): 2022 $ 23,445 2021 25,494 2020 36,225 Finite-lived intangible assets, by reportable segment, as of December 31, 2022, will be amortized over their remaining lives as follows (in thousands): NAST Global Forwarding All Other and Corporate Total 2023 $ 8,084 $ 11,529 $ 1,072 $ 20,685 2024 8,008 3,493 1,072 12,573 2025 7,857 2,272 1,072 11,201 2026 7,857 369 735 8,961 2027 1,310 — 491 1,801 Thereafter — — 205 205 Total $ 55,426 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: • Level 1-Quoted market prices in active markets for identical assets or liabilities. • Level 2-Observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3-Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS The components of our short-term and long-term debt and the associated interest rates were as follows (dollars in thousands): Average interest rate as of Carrying value as of December 31, 2022 December 31, 2021 Maturity December 31, 2022 December 31, 2021 Revolving credit facility — % 1.23 % November 2027 $ — $ 525,000 364-day revolving credit facility 5.12 % — % May 2023 379,000 — Senior Notes, Series A 3.97 % 3.97 % August 2023 175,000 175,000 Senior Notes, Series B 4.26 % 4.26 % August 2028 150,000 150,000 Senior Notes, Series C 4.60 % 4.60 % August 2033 175,000 175,000 Receivables Securitization Facility (1) 5.01 % 0.73 % November 2023 499,655 299,481 Senior Notes (1) 4.20 % 4.20 % April 2028 595,049 594,168 Total debt 1,973,704 1,918,649 Less: Current maturities and short-term borrowing (1,053,655) (525,000) Long-term debt $ 920,049 $ 1,393,649 ________________________________ (1) Net of unamortized discounts and issuance costs. SENIOR UNSECURED REVOLVING CREDIT FACILITY We have a senior unsecured revolving credit facility (the “Credit Agreement”) with a total availability of $1 billion and a maturity date of November 19, 2027. Borrowings under the Credit Agreement generally bear interest at a variable rate determined by a pricing schedule or the base rate (which is the highest of (a) the administrative agent's prime rate, (b) the federal funds rate plus 0.50 percent, or (c) the sum of one-month SOFR plus a specified margin). As of December 31, 2022, the variable rate equaled SOFR and a Credit Spread Adjustment of 0.10 percent plus 1.00 percent. In addition, there is a commitment fee on the average daily undrawn stated amount under the facility ranging from 0.07 percent to 0.15 percent. The recorded amount of borrowings outstanding, if any, approximates fair value because of the short maturity period of the debt; therefore, we consider these borrowings to be a Level 2 financial liability. The Credit Agreement contains various restrictions and covenants that require us to maintain certain financial ratios, including a maximum leverage ratio of 3.75 to 1.00. The Credit Agreement also contains customary events of default. 364-DAY UNSECURED REVOLVING CREDIT FACILITY On May 6, 2022, we entered into an unsecured revolving credit facility (the “364-day Credit Agreement”) with a total availability of $500 million and a maturity date of May 5, 2023. Borrowings under the 364-day Credit Agreement generally bear interest at an alternate base rate plus a margin or a term SOFR-based rate plus a margin of 0.625 percent to 1.25 percent. The alternate base rate is determined by a pricing schedule (which is the highest of (a) 0 percent, (b) U.S. Bank’s prime rate, (c) the federal funds effective rate plus 0.50 percent, or (d) a term SOFR-based rate plus 1.00 percent). In addition, there is a commitment fee on the aggregate unused commitments under the 364-day Credit Agreement ranging from 0.05 percent to 0.175 percent per annum. The recorded amount of borrowings outstanding approximates fair value because of the short maturity period of the debt. The 364-day Credit Agreement contains various restrictions and covenants that require us to maintain certain financial ratios, including an initial maximum leverage ratio of 3.00 to 1.00. The 364-day Credit Agreement also contains customary events of default. NOTE PURCHASE AGREEMENT On August 23, 2013, we entered into a Note Purchase Agreement with certain institutional investors (the “Purchasers”). On August 27, 2013, the Purchasers purchased an aggregate principal amount of $500 million of our Senior Notes, Series A, Senior Notes Series B, and Senior Notes Series C (collectively, the “Notes”). Interest on the Notes is payable semi-annually in arrears. The fair value of the Notes approximated $468.7 million as of December 31, 2022. We estimate the fair value of the Notes primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities, and considering our own risk. If the Notes were recorded at fair value, they would be classified as Level 2. Senior Notes, Series A mature in August 2023 and are classified as current portion of debt in our Consolidated Balance Sheets as of December 31, 2022. The Note Purchase Agreement contains various restrictions and covenants that require us to maintain certain financial ratios, including a maximum leverage ratio of 3.50 to 1.00, a minimum interest coverage ratio of 2.00 to 1.00, and a maximum consolidated priority debt to consolidated total asset ratio of 15 percent. The Note Purchase Agreement provides for customary events of default. The occurrence of an event of default would permit certain Purchasers to declare certain Notes then outstanding to be immediately due and payable. Under the terms of the Note Purchase Agreement, the Notes are redeemable, in whole or in part, at 100 percent of the principal amount being redeemed together with a “make-whole amount” (as defined in the Note Purchase Agreement), and accrued and unpaid interest with respect to each Note. The obligations of the company under the Note Purchase Agreement and the Notes are guaranteed by C.H. Robinson Company, a Delaware corporation and a wholly-owned subsidiary of the company, and by C.H. Robinson Company, Inc., a Minnesota corporation and an indirect wholly-owned subsidiary of the company. On November 21, 2022, we executed the third amendment to the Note Purchase Agreement to among other things, facilitate the terms of the Credit Agreement. U.S. TRADE ACCOUNTS RECEIVABLE SECURITIZATION On November 19, 2021, we entered into a receivables purchase agreement and related transaction documents with Bank of America, N.A. and Wells Fargo Bank, N.A. to provide a receivables securitization facility (the “Receivables Securitization Facility”). The Receivables Securitization Facility is based on the securitization of our U.S. trade accounts receivable with a total availability of $500 million as of December 31, 2022. The interest rate on borrowings under the Receivables Securitization Facility is based on Bloomberg Short Term Bank Yield Index (“BSBY”) plus a margin. There is also a commitment fee we are required to pay on any unused portion of the facility. The Receivables Securitization Facility expires on November 17, 2023, unless extended by the parties. The recorded amount of borrowings outstanding on the Receivables Securitization Facility approximates fair value because it can be redeemed on short notice and the interest rate floats. We consider these borrowings to be a Level 2 financial liability. Borrowings on the Receivables Securitization Facility are included within proceeds on current borrowings on the consolidated statement of cash flows. The Receivables Securitization Facility contains various customary affirmative and negative covenants, and it also contains customary default and termination provisions, which provide for acceleration of amounts owed under the Receivables Securitization Facility upon the occurrence of certain specified events. On February 1, 2022, we amended the Receivables Securitization Facility primarily to increase the total availability from $300 million to $500 million pursuant to the provisions of the existing agreement. On July 7, 2022, we amended the Receivables Securitization Facility to effectively increase the receivables pool available with respect to the Receivables Securitization Facility. SENIOR NOTES On April 9, 2018, we issued senior unsecured notes (“Senior Notes”) through a public offering. The Senior Notes bear an annual interest rate of 4.20 percent payable semi-annually on April 15 and October 15, until maturity on April 15, 2028. Taking into effect the amortization of the original issue discount and all underwriting and issuance expenses, the Senior Notes have an effective yield to maturity of approximately 4.39 percent per annum. The fair value of the Senior Notes, excluding debt discounts and issuance costs, approximated $569.5 million as of December 31, 2022, based primarily on the market prices quoted from external sources. The carrying value of the Senior Notes was $595.0 million as of December 31, 2022. If the Senior Notes were measured at fair value in the financial statements, they would be classified as Level 2 in the fair value hierarchy. We may redeem the Senior Notes, in whole or in part, at any time and from time to time prior to their maturity at the applicable redemption prices described in the Senior Notes. Upon the occurrence of a “change of control triggering event” as defined in the Senior Notes (generally, a change of control of us accompanied by a reduction in the credit rating for the Senior Notes), we will generally be required to make an offer to repurchase the Senior Notes from holders at 101 percent of their principal amount plus accrued and unpaid interest to the date of repurchase. The Senior Notes were issued under an indenture that contains covenants imposing certain limitations on our ability to incur liens; enter into sales and leaseback transactions above certain limits; and consolidate, merge, or transfer substantially all of our assets and those of our subsidiaries on a consolidated basis. It also provides for customary events of default (subject in certain cases to customary grace and cure periods), which include among other things nonpayment, breach of covenants in the indenture, and certain events of bankruptcy and insolvency. If an event of default occurs and is continuing with respect to the Senior Notes, the trustee or holders of at least 25 percent in principal amount outstanding of the Senior Notes may declare the principal and the accrued and unpaid interest, if any, on all of the outstanding Senior Notes to be due and payable. These covenants and events of default are subject to a number of important qualifications, limitations, and exceptions that are described in the indenture. The indenture does not contain any financial ratios or specified levels of net worth or liquidity to which we must adhere. I n addition to the above financing agreements, we have a $15 million discretionary line of credit with U.S. Bank of which $7.9 million is currently utilized for standby letters of credit related to insurance collateral as of December 31, 2022. These standby letters of credit are renewed annually and were undrawn as of December 31, 2022. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES C.H. Robinson Worldwide, Inc. and its 80 percent (or more) owned U.S. subsidiaries file a consolidated federal income tax return. We file unitary or separate state returns based on state filing requirements. With few exceptions, we are no longer subject to audits of U.S. federal, state and local, or non-U.S. income tax returns before 2015. We are currently under an Internal Revenue Service audit for the 2015 to 2017 tax years. In 2019, we removed our assertion that the unremitted earnings of our foreign subsidiaries were permanently reinvested with limited exceptions. If we repatriated all foreign earnings that are still considered to be permanently reinvested, the estimated effect on income taxes payable would be an increase of approximately $2.0 million as of December 31, 2022. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) in response to the COVID-19 pandemic. The CARES Act allowed for a deferral of the employer share of federal payroll taxes. We recognized a payroll deferral of $14.7 million under the CARES Act as of December 31, 2021, which has been paid as of December 31, 2022. Income before provision for income taxes consisted of (in thousands): 2022 2021 2020 Domestic $ 799,553 $ 566,847 $ 499,384 Foreign 367,212 455,444 128,947 Total $ 1,166,765 $ 1,022,291 $ 628,331 A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): 2022 2021 2020 Unrecognized tax benefits, beginning of period $ 37,302 $ 36,216 $ 33,938 Additions based on tax positions related to the current year 4,064 3,530 3,172 Additions for tax positions of prior years 3,016 1,919 1,568 Reductions for tax positions of prior years (247) (2,431) (124) Lapse in statute of limitations (5,026) (1,932) (2,276) Settlements (53) — (62) Unrecognized tax benefits, end of the period $ 39,056 $ 37,302 $ 36,216 Income tax expense considers amounts that may be needed to cover exposures for open tax years. We do not expect any material impact related to open tax years; however, actual settlements may differ from amounts accrued. As of December 31, 2022, we had $43.0 million of unrecognized tax benefits and related interest and penalties, all of which would affect our effective tax rate if recognized. In the unlikely event these unrecognized tax benefits and related interest and penalties were recognized fully in 2022, the impact to the annual effective tax rate would have been 3.7 percent. We are not aware of any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefit will significantly increase or decrease in the next 12 months. The total liability for unrecognized tax benefits is expected to decrease by approximately $3.0 million in the next 12 months due to lapsing of statutes. We recognize interest and penalties related to uncertain tax positions in the provision for income taxes. During the years ended December 31, 2022, 2021, and 2020, we recognized approximately $0.6 million, $0.9 million, and $1.0 million in interest and penalties, respectively. We had approximately $3.9 million and $5.6 million for the payment of interest and penalties related to uncertain tax positions accrued within noncurrent income taxes payable as of December 31, 2022 and 2021, respectively. These amounts are not included in the reconciliation above. The components of the provision for income taxes consist of the following for the years ended December 31 (in thousands): 2022 2021 2020 Tax provision: Federal $ 153,349 $ 165,218 $ 99,901 State 33,309 36,718 19,825 Foreign 97,147 85,654 40,103 283,805 287,590 159,829 Deferred provision (benefit): Federal (44,133) (90,960) (28,238) State (7,848) (16,176) (5,749) Foreign (5,583) (2,408) (3,932) (57,564) (109,544) (37,919) Total provision $ 226,241 $ 178,046 $ 121,910 A reconciliation of the provision for income taxes using the statutory federal income tax rate to our effective income tax rate for the years ended December 31, is as follows: 2022 2021 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.1 1.7 2.5 Share-based payment awards (1.1) (0.6) (2.8) Excess foreign tax credits (1.2) (0.4) (2.2) Other U.S. tax credits and incentives (2.0) (3.3) (1.4) Foreign 0.6 (1.2) 1.3 Other — 0.2 1.0 Effective income tax rate 19.4 % 17.4 % 19.4 % Deferred tax assets (liabilities) are comprised of the following as of December 31 (in thousands): 2022 2021 Deferred tax assets: Lease liabilities $ 79,402 $ 60,846 Compensation 69,305 71,770 Accrued expenses 52,416 92,936 Foreign affiliate prepayment 1,901 88,399 Long-lived assets 94,268 — Other 23,990 22,925 Deferred tax liabilities: Right-of-use assets (74,507) (56,044) Intangible assets (53,580) (79,198) Accrued revenue — (47,255) Prepaid assets (6,657) (14,021) Long-lived assets — (10,387) Foreign withholding tax (9,709) (11,917) Other (9,483) (9,267) Net deferred tax assets $ 167,346 $ 108,787 We had foreign net operating loss carryforwards with a tax effect of $9.0 million as of December 31, 2022, and $8.6 million as of December 31, 2021. The net operating loss carryforwards will expire at various dates from 2023 to 2030, with certain jurisdictions having indefinite carryforward terms. We continually monitor and review the foreign net operating loss carryforwards to determine the ability to realize the deferred tax assets associated with the foreign net operating loss carryforwards. As of December 31, 2022 and 2021, we have recorded a valuation allowance of $1.4 million and $2.5 million, respectively, against the deferred tax asset related to the foreign operating loss carryforwards. |
CAPITAL STOCK AND STOCK AWARD P
CAPITAL STOCK AND STOCK AWARD PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
CAPITAL STOCK AND STOCK AWARD PLANS | CAPITAL STOCK AND STOCK AWARD PLANS PREFERRED STOCK. Our Certificate of Incorporation authorizes the issuance of 20,000,000 shares of preferred stock, par value $0.10 per share. There are no shares of preferred stock outstanding. The preferred stock may be issued by resolution of our Board of Directors at any time without any action of the stockholders. The Board of Directors may issue the preferred stock in one or more series and fix the designation and relative powers. These include voting powers, preferences, rights, qualifications, limitations, and restrictions of each series. The issuance of any such series may have an adverse effect on the rights of holders of common stock and may impede the completion of a merger, tender offer, or other takeover attempt. COMMON STOCK. Our Certificate of Incorporation authorizes 480,000,000 shares of common stock, par value $0.10 per share. Subject to the rights of preferred stock, which may from time to time be outstanding, holders of common stock are entitled to receive dividends out of funds legally available, when and if declared by the Board of Directors, and to receive their share of the net assets of the company legally available for distribution upon liquidation or dissolution. For each share of common stock held, stockholders are entitled to one vote on each matter to be voted on by the stockholders, including the election of directors. Holders of common stock are not entitled to cumulative voting. The stockholders do not have preemptive rights. All outstanding shares of common stock are fully paid and nonassessable. STOCK AWARD PLANS. Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense as it vests. A summary expense recognized within personnel expenses in our consolidated statements of operations and comprehensive income for stock-based compensation is as follows (in thousands): 2022 2021 2020 Stock options $ 13,025 $ 16,128 $ 20,162 Stock awards 74,186 110,701 20,985 Company expense on ESPP discount 3,466 3,148 2,848 Total stock-based compensation expense $ 90,677 $ 129,977 $ 43,995 On May 5, 2022, our shareholders approved a 2022 Equity Incentive Plan (the “Plan”) and authorized an initial 4,261,884 shares for issuance of awards thereunder. Upon approval of the Plan, no new awards may be made under our 2013 Equity Incentive Plan. The Plan allows us to grant certain stock awards, including stock options at fair market value, performance-based restricted stock units and shares, and time-based restricted stock units, to our key employees and non-employee directors. Shares subject to awards granted under the plan or our prior equity incentive plans that expire or are canceled without delivery of shares or that are settled in cash, generally become available again for issuance under the Plan. There were 4,377,540 shares were available for stock awards under the Plan as of December 31, 2022. STOCK OPTIONS. We have awarded stock options to certain key employees that vest primarily based on their continued employment. The value of these awards is established by the market price on the date of the grant calculated using the Black-Scholes option pricing model. Changes in measured stock price volatility and interest rates were the primary reasons for changes in the fair value. These grants are being expensed based on the terms of the awards. Although participants can exercise options via a stock swap exercise, we do not issue reloads (restoration options) on the grants. The following schedule summarizes stock option activity in the plans. All outstanding unvested options as of December 31, 2022, relate to time-based grants from 2018 through 2020. Options Weighted Aggregate Average Outstanding as of December 31, 2021 6,493,864 $ 76.88 $ 199,682 5.8 Exercised (1,126,384) 71.91 Forfeitures (8,684) 76.43 Outstanding as of December 31, 2022 5,358,796 $ 77.93 $ 73,065 5.1 Vested as of December 31, 2022 4,491,967 $ 78.17 4.7 Exercisable as of December 31, 2022 4,491,967 $ 78.17 4.7 As of December 31, 2022, unrecognized compensation expense related to stock options was $13.4 million. The amount of future expense to be recognized will be based on the passage of time and the employees' continued employment. There were no potentially dilutive stock options for 2022 excluded from our diluted net income per share calculations because these securities’ exercise prices were anti-dilutive (e.g., greater than the average market price of our common stock). Information on the intrinsic value of options exercised is as follows (in thousands): 2022 $ 43,353 2021 20,427 2020 38,551 The following table summarizes these unvested stock option grants as of December 31, 2022: First Vesting Date Last Vesting Date Options Weighted Average Grant Date Fair Value (1) Unvested Options December 31, 2019 December 31, 2023 1,152,836 $ 20.13 223,752 December 31, 2020 December 31, 2024 1,632,187 13.87 643,077 2,785,023 $ 16.46 866,829 ________________________________ (1) Amount shown is the weighted average grant date fair value of options granted, net of forfeitures. Determining Fair Value We estimated the fair value of stock options granted using the Black-Scholes option pricing model. We estimate the fair value of restricted shares and units using the Black-Scholes option pricing model-protective put method. A description of significant assumptions used to determine the risk-free interest rate, dividend yield, expected volatility, and expected term are as follows: Risk-Free Interest Rate -The risk-free interest rate was based on the implied yield available on U.S. Treasury zero-coupon issues at the date of grant with a term equal to the expected term. Dividend Yield -The dividend yield assumption is based on our history of dividend payouts. Expected Volatility -Expected volatility was determined based on the implied volatility of traded options of our stock and the historical volatility of our stock price. Expected Term -Expected term represents the period that our stock-based awards are expected to be outstanding and was determined based on historical experience and anticipated future exercise patterns, giving consideration to the contractual terms of unexercised stock-based awards. The grant date fair value per option was estimated using the Black-Scholes option pricing model with the following assumptions: 2020 Grants 2019 Grants Weighted-average risk-free interest rate 1.6% 2.1% Expected dividend yield 2.5% 2.0% Weighted-average volatility 23% 25% Expected term (in years) 8.91 6.08 Weighted average fair value per option $ 13.88 $ 17.52 STOCK AWARDS. We have awarded performance-based restricted shares, performance-based restricted stock units (“PSUs”), and time-based restricted stock units. Nearly all of our awards contain restrictions on the awardees’ ability to sell or transfer vested awards for a specified period of time. The fair value of these awards is established based on the market price on the date of grant, discounted for post-vesting holding restrictions. The discounts on outstanding grants with post-vesting holding restrictions vary from 12 percent to 24 percent and are calculated using the Black-Scholes option pricing model-protective put method. The duration of the restriction period to sell or transfer vested awards, changes in the measured stock price volatility, and changes in interest rates are the primary reasons for changes in the discount. These grants are being expensed based on the terms of the awards. Performance-Based Awards We have awarded performance-based restricted shares through 2020 to certain key employees. These awards vest over a five-year period based on the company’s earnings growth. Beginning in 2021, we have awarded annually PSUs to certain key employees. These PSUs vest over a three-year period based on the company's cumulative three-year dilutive earnings per share growth and annual adjusted gross profits growth. These PSUs contain an upside opportunity of 200 percent of target contingent upon obtaining certain dilutive earnings per share and adjusted gross profits growth targets. The following table summarizes activity related to our performance-based restricted shares and PSUs as of December 31, 2022: Number of Restricted Shares and Restricted Stock Units Weighted Average Unvested as of December 31, 2021 407,642 $ 72.21 Granted (1) 334,092 76.87 Performance-based grant adjustment (2) 59,338 71.43 Vested (266,651) 68.86 Forfeitures (16,613) 70.84 Unvested as of December 31, 2022 517,808 $ 76.89 ________________________________ (1) Amount represents PSU grants at target. (2) Amount represents incremental shares issuable for achieving 200 percent upside upon meeting certain adjusted gross profits targets in 2022. The following table summarizes unvested PSUs by vesting period at target: First Vesting Date Last Vesting Date Performance Shares and Stock Units Weighted Average Grant Date Fair Value (1) Unvested Performance Shares and Restricted Stock Units December 31, 2021 December 31, 2023 261,524 $ 74.84 248,708 December 31, 2022 December 31, 2024 294,928 76.74 269,100 556,452 $ 75.85 517,808 ________________________________ (1) Amount shown is the weighted average grant date fair value of PSUs granted, net of forfeitures. We granted an additional 272,455 performance-based restricted stock units at target in February 2023. These awards have a weighted average grant date fair value of $92.15 and will vest over a three-year period based upon achieving certain cumulative three-year dilutive earnings per share, adjusted gross profits, and adjusted operating margin percentage targets. Time-Based Awards We award time-based restricted stock units to certain key employees. Time-based awards granted through 2020 vest over a five-year period. Beginning in 2021, we have granted annually time-based awards that vest over a three-year period primarily based on the passage of time and the employee's continued employment. These grants are being expensed based on the terms of the awards. The following table summarizes our unvested time-based restricted share and restricted stock unit grants as of December 31, 2022: Number of Restricted Weighted Average Unvested as of December 31, 2021 763,481 $ 69.42 Granted 745,689 77.55 Vested (568,617) 71.85 Forfeitures (51,141) 72.88 Unvested as of December 31, 2022 889,412 $ 74.26 We granted an additional 688,341 time-based restricted stock units in February 2023. These awards have a weighted average grant date fair value of $92.74 and will vest over a three-year period. A summary of the fair value of stock awards vested (in thousands): 2022 $ 74,186 2021 110,701 2020 20,985 As of December 31, 2022, there was unrecognized compensation expense of $119.0 million related to previously granted stock awards assuming maximum achievement is obtained on our performance-based awards. The amount of future expense to be recognized will be based on the passage of time, the company’s dilutive earnings per share and adjusted gross profits growth, and certain other conditions. EMPLOYEE STOCK PURCHASE PLAN. Our 1997 Employee Stock Purchase Plan allows our employees to contribute up to $10,000 of their annual cash compensation to purchase company stock. Purchase price is determined using the closing price on the last day of the quarter discounted by 15 percent. Shares are vested immediately. The following is a summary of the employee stock purchase plan activity (dollar amounts in thousands): Shares Purchased Aggregate Cost Expense Recognized 2022 229,705 $ 19,643 $ 3,466 2021 220,970 17,838 3,148 2020 236,062 16,146 2,848 SHARE REPURCHASE PROGRAMS. On December 9, 2021, the Board of Directors increased the company’s share repurchase authorization by an additional 20,000,000 shares of common stock. As of December 31, 2022, we had 7,409,198 shares remaining under the share repurchase authorization. The activity under these authorizations is as follows (dollar amounts in thousands): Shares Repurchased Total Value of Shares 2022 Repurchases 14,226,190 $ 1,456,713 2021 Repurchases 6,154,364 580,818 2020 Repurchases 2,542,915 182,745 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES EMPLOYEE BENEFIT PLANS. We offer a defined contribution plan, which qualifies under section 401(k) of the Internal Revenue Code and covers all eligible U.S. employees. We can also elect to make matching contributions to the plan. Annual discretionary contributions may also be made to the plan. Defined contribution plan expense, including matching contributions, is as follows (in thousands): 2022 $ 59,259 2021 48,714 2020 18,827 We contributed a defined contribution match of six percent in 2022 and 2021. Effective May 22, 2020, we temporarily suspended the employer-matching contribution due to the impacts of the COVID-19 pandemic. The employer-matching contribution was reinstated effective January 1, 2021. LEASE COMMITMENTS. We maintain operating leases for office space, warehouses, office equipment, trailers, and a small number of intermodal containers. See Note 11, Leases , for further information. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS Combinex Holding B.V. On June 3, 2021, we acquired all of the outstanding shares of Combinex Holding B.V. (“Combinex”) to strengthen our European surface transportation presence. Total purchase consideration, net of cash acquired was $14.7 million, which was paid in cash. Identifiable intangible assets and estimated useful lives are as follows (dollars in thousands): Estimated Life (years) Customer relationships 7 $ 3,942 There was $10.8 million of goodwill recorded related to the acquisition of Combinex. The Combinex goodwill is a result of acquiring and retaining the Combinex workforce and expected synergies from integrating its business into ours. Purchase accounting is considered complete. The goodwill will not be deductible for tax purposes. The results of operations of Combinex have been included as part of the All Other and Corporate segment in our consolidated financial statements since June 3, 2021. Prime Distribution Services On March 2, 2020, we acquired all of the outstanding shares of Prime Distribution Services (“Prime Distribution”), a leading provider of retail consolidation services in North America, for $222.7 million in cash. This acquisition adds scale and value-added warehouse capabilities to our retail consolidation platform, adding to our global suite of services. The following is a summary of the allocation of purchase consideration to the estimated fair value of net assets for the acquisition of Prime Distribution (dollars in thousands): Current assets $ 8,879 Property and equipment 7,356 Right-of-use lease assets 35,017 Other intangible assets 55,000 Goodwill 176,727 Total assets 282,979 Current liabilities 12,243 Lease liabilities 35,017 Deferred tax liabilities 13,001 Net assets acquired $ 222,718 Identifiable intangible assets and estimated useful lives are as follows (dollars in thousands): Estimated Life (years) Customer relationships 7 $ 55,000 There was $176.7 million of goodwill recorded related to the acquisition of Prime Distribution. The Prime Distribution goodwill is a result of acquiring and retaining the Prime Distribution workforce and expected synergies from integrating its business into ours. Purchase accounting is considered complete. The goodwill will not be deductible for tax purposes. The acquisition was effective as of February 29, 2020, and therefore the results of operations of Prime Distribution have been included as part of the North American Surface Transportation (“NAST”) segment in our consolidated financial statements since March 1, 2020. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Our segments are based on our method of internal reporting, which generally segregates the segments by service line and the primary services they provide to our customers. The internal reporting of segments is defined, based in part, on the reporting and review process used by our chief operating decision maker (“CODM”), our Interim Chief Executive Officer. The accounting policies of our reportable segments are the same as those described in the summary of significant accounting policies. We do not report our intersegment revenues by segment to our CODM and do not believe they are a meaningful metric for evaluating the performance of our reportable segments. We identify two reportable segments as follows: • North American Surface Transportation: NAST provides freight transportation services across North America through a network of offices in the U.S., Canada, and Mexico. The primary services provided by NAST are truckload and less than truckload (“LTL”) transportation services. • Global Forwarding: Global Forwarding provides global logistics services through an international network of offices in North America, Asia, Europe, Oceania, and South America and also contracts with independent agents worldwide. The primary services provided by Global Forwarding include ocean freight services, air freight services, and customs brokerage. • All Other and Corporate: All Other and Corporate includes our Robinson Fresh and Managed Services segments, as well as Other Surface Transportation outside of North America and other miscellaneous revenues and unallocated corporate expenses. Robinson Fresh provides sourcing services including the buying, selling, and/or marketing of fresh fruits, vegetables, and other value-added perishable items. Managed Services provides Transportation Management Services, or Managed TMS ® . Other Surface Transportation revenues are primarily earned by our Europe Surface Transportation segment. Europe Surface Transportation provides transportation and logistics services including truckload and groupage services across Europe. Reportable segment information as of, and for the years ended, December 31, 2022, 2021, and 2020, is as follows (dollars in thousands): NAST Global Forwarding All Other and Corporate Consolidated Twelve Months Ended December 31, 2022 Total revenues $ 15,827,467 $ 6,812,008 $ 2,057,150 $ 24,696,625 Income (loss) from operations 833,302 449,364 (15,884) 1,266,782 Depreciation and amortization 23,643 21,835 47,298 92,776 Total assets (1) 3,304,480 1,507,913 1,142,171 5,954,564 Average employee headcount 7,365 5,712 4,524 17,601 NAST Global Forwarding All Other and Corporate Consolidated Twelve Months Ended December 31, 2021 Total revenues $ 14,507,917 $ 6,729,790 $ 1,864,431 $ 23,102,138 Income (loss) from operations 585,351 510,756 (13,999) 1,082,108 Depreciation and amortization 26,243 22,823 42,193 91,259 Total assets (1) 3,349,578 2,843,239 835,295 7,028,112 Average employee headcount 6,764 5,071 3,926 15,761 NAST Global Forwarding All Other and Corporate Consolidated Twelve Months Ended December 31, 2020 Total revenues $ 11,312,553 $ 3,100,525 $ 1,794,028 $ 16,207,106 Income (loss) from operations 508,475 175,513 (10,720) 673,268 Depreciation and amortization 25,314 34,550 41,863 101,727 Total assets (1) 2,946,409 1,392,411 805,438 5,144,258 Average employee headcount 6,811 4,708 3,600 15,119 ________________________________ (1) All cash and cash equivalents and certain owned properties are included in All Other and Corporate. The following table presents our total revenues (based on location of the customer) and long-lived assets (including intangible and other assets) by geographic regions (in thousands): For the year ended December 31, 2022 2021 2020 Total revenues U.S. $ 20,696,448 $ 19,494,969 $ 13,896,382 Other locations 4,000,177 3,607,169 2,310,724 Total revenues $ 24,696,625 $ 23,102,138 $ 16,207,106 As of December 31, 2022 2021 2020 Long-lived assets U.S. $ 751,984 $ 587,339 $ 551,511 Other locations 142,529 151,866 163,860 Total long-lived assets $ 894,513 $ 739,205 $ 715,371 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS A summary of our total revenues disaggregated by major service line and timing of revenue recognition is presented below for each of our reportable segments for the twelve months ended December 31, 2022, 2021, and 2020, as follows (dollars in thousands): Twelve Months Ended December 31, 2022 NAST Global Forwarding All Other and Corporate Total Major service lines: Transportation and logistics services (1) $ 15,827,467 $ 6,812,008 $ 876,909 $ 23,516,384 Sourcing (2) — — 1,180,241 1,180,241 Total $ 15,827,467 $ 6,812,008 $ 2,057,150 $ 24,696,625 Twelve Months Ended December 31, 2021 NAST Global Forwarding All Other and Corporate Total Major service lines: Transportation and logistics services (1) $ 14,507,917 $ 6,729,790 $ 808,867 $ 22,046,574 Sourcing (2) — — 1,055,564 1,055,564 Total $ 14,507,917 $ 6,729,790 $ 1,864,431 $ 23,102,138 Twelve Months Ended December 31, 2020 NAST Global Forwarding All Other and Corporate Total Major service lines: Transportation and logistics services (1) $ 11,312,553 $ 3,100,525 $ 734,484 $ 15,147,562 Sourcing (2) — — 1,059,544 1,059,544 Total $ 11,312,553 $ 3,100,525 $ 1,794,028 $ 16,207,106 ________________________________ (1) Transportation and logistics services performance obligations are completed over time. (2) Sourcing performance obligations are completed at a point in time. We typically do not receive consideration and amounts are not due from our customer prior to the completion of our performance obligations and as such contract liabilities as of December 31, 2022 and 2021, and revenue recognized in the twelve months ended December 31, 2022, 2021, and 2020, resulting from contract liabilities were not significant. Contract assets and accrued expenses—transportation expense fluctuate from period to period primarily based upon shipments in-transit at period end and the timing of customer invoicing. Approximately 93 percent, 93 percent, and 91 percent of our total revenues for the twelve months ended December 31, 2022, 2021, and 2020, respectively, are attributable to arranging for the transportation of our customers’ freight for which we transfer control and satisfy our performance obligation over the requisite transit period. A days in transit output method is used to measure the progress of our performance as of the reporting date. We determine the transit period based upon the departure date and the delivery date, which may be estimated if delivery has not occurred as of the reporting date. Determining the transit period and how much of it has been completed as of the reporting date may require management to make judgments that affect the timing of revenue recognized. We have determined that revenue recognition over the transit period provides a faithful depiction of the transfer of goods and services to our customer as our obligation is performed over the transit period. The transaction price for our performance obligation under these arrangements is generally fixed and readily determinable upon contract inception and is not contingent upon the occurrence or non-occurrence of another event. Approximately five percent, five percent, and seven percent of our total revenues for the twelve months ended December 31, 2022, 2021, and 2020, respectively, are attributable to buying, selling, and/or marketing of produce including fresh fruits, vegetables, and other value-added perishable items. Total revenues for these transactions are recognized at a point in time upon completion of our performance obligation, which is generally when the produce is received by our customer. The transaction price for our performance obligation under these arrangements is generally fixed and readily determinable upon contract inception and is not contingent upon the occurrence or non-occurrence of another event. Approximately two percent of our total revenues for the twelve months ended December 31, 2022, 2021, and 2020, respectively, are attributable to value-added logistics services, such as customs brokerage, fee-based managed services, warehousing services, small parcel, and supply chain consulting and optimization services. Total revenues for these services are recognized over time as we complete our performance obligation. Transaction price is determined and allocated to these performance obligations at their fixed fee or agreed upon rate multiplied by their associated measure of progress, which may be transactional volumes, labor hours, or time elapsed. We expense incremental costs of obtaining customer contracts (i.e., sales commissions) due to the short duration of our arrangements as the amortization period of such amounts is expected to be less than one year. These amounts are included within personnel expenses in our consolidated statements of operations and comprehensive income. In addition, we do not disclose the aggregate amount of transaction price allocated to performance obligations that are unsatisfied as of the end of the period, as our contracts have an expected length of one year or less. Finally, for certain of our performance obligations such as fee-based managed services, supply chain consulting and optimization services, and warehousing services, we have recognized revenue in the amount for which we have the right to invoice our customer as we have determined this amount corresponds directly with the value provided to the customer for our performance completed to date. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES We determine if our contractual agreements contain a lease at inception. A lease is identified when a contract allows us the right to control an identified asset for a period of time in exchange for consideration. Our lease agreements consist primarily of operating leases for office space, warehouses, office equipment, trailers, and a small number of intermodal containers. We do not have material financing leases. Frequently, we enter into contractual relationships with a wide variety of transportation companies for freight capacity and utilize those relationships to efficiently and cost-effectively arrange the transport of our customers’ freight. These contracts typically have a term of twelve months or less and do not allow us to direct the use or obtain substantially all of the economic benefits of a specifically identified asset. Accordingly, these agreements are not considered leases. Our operating leases are included on the consolidated balance sheets as right-of-use lease assets and lease liabilities. A right-of-use lease asset represents our right to use an underlying asset over the term of a lease, while a lease liability represents our obligation to make lease payments arising from the lease. Current and noncurrent lease liabilities are recognized on commencement date at the present value of lease payments, including non-lease components, which consist primarily of common area maintenance and parking charges. Right-of-use lease assets are also recognized on the commencement date as the total lease liability plus prepaid rents. As our leases typically do not provide an implicit rate, we use our fully collateralized incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is influenced by market interest rates, our credit rating, and lease term and as such, may differ for individual leases. Our lease agreements typically do not contain variable lease payments, residual value guarantees, purchase options, or restrictive covenants. Many of our leases include the option to renew for a period of months to several years. The term of our leases may include the option to renew when it is reasonably certain that we will exercise that option although these occurrences are seldom. We have lease agreements with lease components (e.g., payments for rent) and non-lease components (e.g., payments for common area maintenance and parking), which are all accounted for as a single lease component. We do not have material lease agreements that have not yet commenced that are expected to create significant rights or obligations as of December 31, 2022. Information regarding lease expense, remaining lease term, discount rate, and other select lease information is presented below as of December 31, 2022 and 2021, and for the twelve months ended December 31, 2022 and 2021 (dollars in thousands): Twelve Months Ended December 31, Lease Costs 2022 2021 2020 Operating lease expense $ 92,032 $ 85,521 $ 86,451 Short-term lease expense 7,151 8,307 15,130 Total lease expense $ 99,183 $ 93,828 $ 101,581 Twelve Months Ended December 31, Other Lease Information 2022 2021 2020 Operating cash outflows from operating leases $ 91,702 $ 85,244 $ 74,177 Right-of-use lease assets obtained in exchange for new lease liabilities (1) 161,886 52,931 95,005 As of December 31, Lease Term and Discount Rate 2022 2021 Weighted average remaining lease term (in years) (1) 6.4 6.4 Weighted average discount rate 3.5 % 3.0 % ________________________________ (1) The weighted average remaining lease term is significantly impacted by a 15-year lease related to office space in Chicago, IL, which commenced in 2018. Excluding this lease, the weighted average remaining lease term of our agreements is 5.3 years. The maturity of lease liabilities as of December 31, 2022, were as follows (in thousands): Maturity of Lease Liabilities Operating Leases 2023 $ 85,930 2024 77,868 2025 64,308 2026 53,098 2027 42,757 Thereafter 113,678 Total lease payments 437,639 Less: Interest (50,175) Present value of lease liabilities $ 387,464 |
CREDIT LOSSES
CREDIT LOSSES | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES | ALLOWANCE FOR CREDIT LOSSES Our allowance for credit losses is computed using a number of factors including our historical credit loss experience, customer aging trends, our customers' credit ratings, in addition to other customer-specific factors. We have also considered recent trends and developments related to the current macroeconomic environment in determining our ending allowance for credit losses for both accounts receivable and contract assets. The allowance for credit losses on contract assets was not significant. A rollforward of our allowance for credit losses on our accounts receivable balance is presented below for the twelve months ended December 31, 2021 and 2022 (in thousands): Balance, December 31, 2020 $ 38,113 Provision 9,405 Write-offs (5,976) Balance, December 31, 2021 41,542 Provision (3,442) Write-offs (9,351) Balance, December 31, 2022 $ 28,749 Recoveries of amounts previously written off were not significant for the twelve months ended December 31, 2022. |
CHANGES IN ACCUMULATED OTHER CO
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss is included in the Stockholders’ investment on our consolidated balance sheets. The recorded balance as of December 31, 2022 and 2021, was $88.9 million and $61.1 million, respectively, and is comprised solely of foreign currency adjustments, including foreign currency translation. Other comprehensive loss was $27.7 million for the twelve months ended December 31, 2022, driven primarily by fluctuations in the Yuan, Singapore Dollar, and Australian Dollar. Other comprehensive loss was $15.1 million for the twelve months ended December 31, 2021, driven primarily by fluctuations in the Singapore Dollar and Australian Dollar. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTSFor the twelve months ended December 31, 2022, there were no recently issued or newly adopted accounting pronouncements that had, or are expected to have, a material impact to our consolidated financial statements. |
Restructuring and Related Activ
Restructuring and Related Activities | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | 5: RESTRUCTURING In 2022, we announced organizational changes to support our enterprise strategy of accelerating our digital transformation and productivity initiatives. We recognized restructuring charges of $36.7 million related to cost saving initiatives including workforce reductions and reprioritizing our investments in technology. For severance and other operating expenses related to restructuring activities, we paid $2.7 million in cash in 2022 with nearly all the remaining $19.0 million expected to be paid in 2023. A summary of the restructuring charges recognized is presented below (in thousands): Twelve Months Ended December 31, 2022 Severance (1) $ 18,872 Other selling, general, and administrative expenses (2) 15,150 Other personnel expenses (1) 2,662 Total $ 36,684 ________________________________ (1) Amounts are included within personnel expenses in our consolidated statement of operations. (2) We recognized expense of $14.8 million related to the impairment of certain capitalized internally developed software projects and $0.4 million related other miscellaneous exit costs within other selling, general, and administrative expenses in our consolidated statement of operations. The following table summarizes restructuring charges by reportable segment for the twelve months ended December 31, 2022 ($ in thousands): NAST Global Forwarding All Other and Corporate Consolidated Personnel expenses $ 6,323 $ 3,831 $ 11,380 $ 21,534 Other selling, general, and administrative expenses 3,175 3,174 8,801 15,150 The following table summarizes restructuring reserves included in our consolidated balance sheet as of December 31, 2022: Accrued Severance and Other Personnel Expenses Other Selling, General, and Administrative Expenses Total Balance, December 31, 2021 $ — $ — $ — Restructuring charges 21,534 15,150 36,684 Cash payments (2,558) (94) (2,652) Settled non-cash — (15,056) (15,056) Balance, December 31, 2022 $ 18,976 $ — $ 18,976 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION. C.H. Robinson Worldwide, Inc., and our subsidiaries (“the company,” “we,” “us,” or “our”) are a global provider of transportation services and logistics solutions through a network of offices operating in North America, Europe, Asia, Oceania, and South America. The consolidated financial statements include the accounts of C.H. Robinson Worldwide, Inc., and our majority owned and controlled subsidiaries. Our minority interests in subsidiaries are not significant. All intercompany transactions and balances have been eliminated in the consolidated financial statements. |
USE OF ESTIMATES | USE OF ESTIMATES. The preparation of financial statements, in conformity with accounting principles generally accepted in the U.S., requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best information available, and our actual results could differ materially from those estimates. |
REVENUE RECOGNITION | REVENUE RECOGNITION. At contract inception, we assess the goods and services promised in our contracts with customers and identify our performance obligations to provide distinct goods and services to our customers. We have determined that the following distinct goods and services represent our primary performance obligations. Transportation and Logistics Services - As a global logistics provider, our primary performance obligation under our customer contracts is to utilize our relationships with a wide variety of transportation companies to efficiently and cost-effectively transport our customers’ freight. Revenue is recognized for these performance obligations as they are satisfied over the contract term, which generally represents the transit period. The transit period can vary based upon the method of transport, generally a number of days for over the road, rail, and air transportation, or several weeks in the case of an ocean shipment. Determining the transit period and how much of it has been completed as of the reporting date may require management to make judgments that affect the timing of revenue recognized. When the customer’s freight reaches its intended destination our performance obligation is complete. Pricing for our services is generally a fixed amount and is typically due within 30 days upon completion of our performance obligation, but can vary based on the nature of the service provided and certain other factors . We also provide certain value-added logistics services, such as customs brokerage, fee-based managed services, warehousing services, small parcel, and supply chain consulting and optimization services. These services may include one or more performance obligations, which are generally satisfied over the service period as we perform our obligations. The service period may be a very short duration, in the case of customs brokerage and small parcel, or it may be longer in the case of warehousing, managed services, and supply chain consulting and optimization services. Pricing for our services is established in the customer contract and is dependent upon the specific needs of the customer but may be agreed upon at a fixed fee per transaction, labor hour, or service period. Payment is typically due within 30 days upon completion of our performance obligation, but can vary based on the nature of the service provided and certain other factors. Sourcing Services - We contract with grocery retailers, restaurants, foodservice distributors, and produce wholesalers to provide sourcing services under the trade name Robinson Fresh ® (“Robinson Fresh”). Our primary service obligation under these contracts is the buying, selling, and/or marketing of produce including fresh fruits, vegetables, and other value-added perishable items. Revenue is recognized when our performance obligations under these contracts are satisfied at a point in time, generally when the produce is received by our customer. Pricing under these contracts is generally a fixed amount and is typically due within 20 to 30 days upon completion of our performance obligation, but can vary based on the nature of the service provided and certain other factors. In many cases, as additional performance obligations, we contract to arrange logistics and transportation of the products we buy, sell, and/or market. These performance obligations are satisfied over the contract term consistent with our other transportation and logistics services. The contract period is typically less than one year. Pricing for our services is generally a fixed amount and is typically due within 30 days upon completion of our performance obligation, but can vary based on the nature of the service provided and certain other factors. Total revenues represent the total dollar value of revenue recognized from contracts with customers for the goods and services we provide. Substantially all of our revenues are attributable to contracts with our customers. Our adjusted gross profits are our total revenues less purchased transportation and related services, including contracted motor carrier, rail, ocean, air, and other costs, and the purchase price and services related to the products we source. Most transactions in our transportation and sourcing businesses are recorded at the gross amount we charge our customers for the services we provide and goods we sell. In these transactions, we are primarily responsible for fulfilling the promise to provide the specified good or service to our customers and we have discretion in establishing the price for the specified good or service. Additionally, in our sourcing business, in some cases, we take inventory risk before the specified good has been transferred to our customer. Customs |
CONTRACT ASSETS | CONTRACT ASSETS. Contract assets represent amounts for which we have the right to consideration for the services we have provided while a shipment is still in-transit but for which we have not yet completed our performance obligations or have not yet invoiced our customer. Upon completion of our performance obligations, which can vary in duration based upon the method of transport, and billing our customer, these amounts become classified within accounts receivable and are then typically due within 30 days. |
ACCRUED TRANSPORTATION EXPENSE | ACCRUED TRANSPORTATION EXPENSE. Accrued transportation expense represents amounts we owe to vendors, primarily transportation providers, for the services they have provided while a shipment is still in-transit as of the reporting date. |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | ALLOWANCE FOR CREDIT LOSSES. Accounts receivable and contract assets are reduced by an allowance for expected credit losses. We determine our allowance for expected credit losses by evaluating two approaches that consider our past credit loss experience, our customers' credit ratings, and other customer-specific and macroeconomic factors. The first approach is pooling our customers by credit rating and applying an expected loss ratio based upon credit rating and number of days the receivable has been outstanding (i.e., aging approach). The second approach is to compute an expected loss ratio for each credit rating pool based upon our historical write-off experience and apply it to our accounts receivable (i.e., loss ratio approach). These two approaches are evaluated in consideration of other known information and customer-specific and macroeconomic factors, including the price of diesel fuel, for purposes of determining the expected credit loss allowance. |
FOREIGN CURRENCY | FOREIGN CURRENCY. Most balance sheet accounts of foreign subsidiaries are remeasured at the current exchange rate as of the end of the year and translated to our U.S. Dollar reporting currency. Translation adjustments are recorded in other comprehensive (loss) income. Statement of operations items are translated at the average exchange rate during the year. |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS. Cash and cash equivalents consist primarily of bank deposits and highly liquid investments with an original maturity of three months or less from the time of purchase. |
PREPAID EXPENSES AND OTHER | PREPAID EXPENSES AND OTHER. Prepaid expenses and other includes items such as software maintenance contracts, prepaid insurance premiums, other prepaid operating expenses, and inventories, consisting primarily of produce and related products held for resale. |
RIGHT-OF-USE LEASE ASSETS AND LEASE LIABILITIES | RIGHT-OF-USE LEASE ASSETS. Right-of-use lease assets are recognized upon lease commencement and represent our right to use an underlying asset for the lease term. LEASE LIABILITIES. Lease liabilities are recognized at commencement date and represent our obligation to make the lease payments arising from a lease, measured on a discounted basis. |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT. Property and equipment are recorded at cost. Maintenance and repair expenditures are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated life of the asset. Amortization of leasehold improvements is computed over the shorter of the lease term or the estimated useful life of the improvement. |
GOODWILL | GOODWILL. Goodwill represents the excess of the cost of acquired businesses over the net of the fair value of identifiable tangible assets and identifiable intangible assets purchased and liabilities assumed. Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis (November 30 for us) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. |
OTHER INTANGIBLE ASSETS | OTHER INTANGIBLE ASSETS. Other intangible assets include definite-lived customer lists, trademarks, non-competition agreements, and indefinite-lived trademarks. The definite-lived intangible assets are being amortized using the straight-line method over their estimated lives. Definite-lived intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The indefinite-lived trademarks are not amortized. Indefinite-lived intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, or annually, at a minimum. |
OTHER ASSETS | OTHER ASSETS. Other assets consist primarily of purchased and internally developed software. We amortize software when it is put into service using the straight-line method over three years. |
INCOME TAXES | INCOME TAXES. Income taxes are accounted for using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities using enacted rates. Annual tax provisions include amounts considered sufficient to pay assessments that may result from examination of prior year tax returns; however, the amount ultimately paid upon resolution of issues raised may differ from the amounts accrued. The financial statement benefits of an uncertain income tax position are recognized when more likely than not, based on the technical merits, the position will be sustained upon examination. Unrecognized tax benefits are, more likely than not, owed to a taxing authority, and the amount of the contingency can be reasonably estimated. Uncertain income tax positions are included in “Accrued income taxes” or “Noncurrent income taxes payable” in the consolidated balance sheets. |
COMPREHENSIVE INCOME (LOSS) | COMPREHENSIVE INCOME (LOSS). Comprehensive income (loss) consists primarily of foreign currency translation adjustments. It is presented on our consolidated statements of operations and comprehensive income. |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION. We have issued stock awards, including stock options, performance-based restricted shares, performance-based restricted stock units, and time-based restricted stock units to certain key employees. The awards vest over three For grants of stock options, we use the Black-Scholes option pricing model to estimate the fair value of these share-based payment awards. The determination of the fair value of stock options is affected by our stock price and a number of assumptions, including expected volatility, expected term, risk-free interest rate, and dividend yield. |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: • Level 1-Quoted market prices in active markets for identical assets or liabilities. • Level 2-Observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3-Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets. |
RECENTLY ISSUED ACCOUNTING PRNOUNCEMENTS | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTSFor the twelve months ended December 31, 2022, there were no recently issued or newly adopted accounting pronouncements that had, or are expected to have, a material impact to our consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment and Depreciation Expense | We recognized the following depreciation expense (in thousands): 2022 $ 38,102 2021 39,790 2020 42,890 A summary of our property and equipment as of December 31 is as follows (in thousands): 2022 2021 Furniture, fixtures, and equipment $ 266,017 $ 292,224 Buildings (1) 60,766 60,059 Corporate aircraft (1) 23,760 — Leasehold improvements 78,347 70,630 Land 11,005 11,014 Construction in progress 9,933 8,185 Less: accumulated depreciation and amortization (290,396) (302,281) Net property and equipment $ 159,432 $ 139,831 ________________________________ (1) Our corporate aircraft and an office building in Kansas City, Missouri, were reclassified as held-for-sale assets as of December 31, 2021. These held-for-sale assets of $35.0 million were sold in 2022 and were included within Prepaid expenses and other current assets in our Consolidated Balance Sheets as of December 31, 2021. The fair value of the assets that were held for sale was $64.0 million. |
Schedule of Amortization Expense of Software | We recognized the following amortization expense of purchased and internally developed software (in thousands): 2022 $ 31,229 2021 25,975 2020 22,612 |
Schedule of Purchased and Internally Developed Software | A summary of our purchased and internally developed software as of December 31, is as follows (in thousands): 2022 2021 Purchased software $ 8,930 $ 30,312 Internally developed software 164,092 153,983 Less accumulated amortization (84,222) (114,183) Net software $ 88,800 $ 70,112 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill is as follows (in thousands): NAST Global Forwarding All Other and Corporate Total December 31, 2020 balance $ 1,203,972 $ 213,982 $ 69,233 $ 1,487,187 Acquisitions 243 — 10,754 10,997 Foreign currency translation (7,882) (3,591) (1,957) (13,430) December 31, 2021 balance 1,196,333 210,391 78,030 1,484,754 Foreign currency translation (8,257) (4,202) (1,482) (13,941) December 31, 2022 balance $ 1,188,076 $ 206,189 $ 76,548 $ 1,470,813 |
Schedule of Intangible Assets | Identifiable intangible assets consisted of the following as of December 31 (in thousands): 2022 2021 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Finite-lived intangibles Customer relationships $ 162,358 $ (106,932) $ 55,426 $ 169,308 $ (88,302) $ 81,006 Total finite-lived intangibles 162,358 (106,932) 55,426 169,308 (88,302) 81,006 Indefinite-lived intangibles Trademarks 8,600 — 8,600 8,600 — 8,600 Total intangibles $ 170,958 $ (106,932) $ 64,026 $ 177,908 $ (88,302) $ 89,606 |
Schedule of Amortization Expense | Amortization expense for other intangible assets was (in thousands): 2022 $ 23,445 2021 25,494 2020 36,225 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Finite-lived intangible assets, by reportable segment, as of December 31, 2022, will be amortized over their remaining lives as follows (in thousands): NAST Global Forwarding All Other and Corporate Total 2023 $ 8,084 $ 11,529 $ 1,072 $ 20,685 2024 8,008 3,493 1,072 12,573 2025 7,857 2,272 1,072 11,201 2026 7,857 369 735 8,961 2027 1,310 — 491 1,801 Thereafter — — 205 205 Total $ 55,426 |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Short-term and Long-term Debt | The components of our short-term and long-term debt and the associated interest rates were as follows (dollars in thousands): Average interest rate as of Carrying value as of December 31, 2022 December 31, 2021 Maturity December 31, 2022 December 31, 2021 Revolving credit facility — % 1.23 % November 2027 $ — $ 525,000 364-day revolving credit facility 5.12 % — % May 2023 379,000 — Senior Notes, Series A 3.97 % 3.97 % August 2023 175,000 175,000 Senior Notes, Series B 4.26 % 4.26 % August 2028 150,000 150,000 Senior Notes, Series C 4.60 % 4.60 % August 2033 175,000 175,000 Receivables Securitization Facility (1) 5.01 % 0.73 % November 2023 499,655 299,481 Senior Notes (1) 4.20 % 4.20 % April 2028 595,049 594,168 Total debt 1,973,704 1,918,649 Less: Current maturities and short-term borrowing (1,053,655) (525,000) Long-term debt $ 920,049 $ 1,393,649 ________________________________ (1) Net of unamortized discounts and issuance costs. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Provision for Income Taxes | Income before provision for income taxes consisted of (in thousands): 2022 2021 2020 Domestic $ 799,553 $ 566,847 $ 499,384 Foreign 367,212 455,444 128,947 Total $ 1,166,765 $ 1,022,291 $ 628,331 |
Summary of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): 2022 2021 2020 Unrecognized tax benefits, beginning of period $ 37,302 $ 36,216 $ 33,938 Additions based on tax positions related to the current year 4,064 3,530 3,172 Additions for tax positions of prior years 3,016 1,919 1,568 Reductions for tax positions of prior years (247) (2,431) (124) Lapse in statute of limitations (5,026) (1,932) (2,276) Settlements (53) — (62) Unrecognized tax benefits, end of the period $ 39,056 $ 37,302 $ 36,216 |
Schedule of Components of Provision for Income Taxes | The components of the provision for income taxes consist of the following for the years ended December 31 (in thousands): 2022 2021 2020 Tax provision: Federal $ 153,349 $ 165,218 $ 99,901 State 33,309 36,718 19,825 Foreign 97,147 85,654 40,103 283,805 287,590 159,829 Deferred provision (benefit): Federal (44,133) (90,960) (28,238) State (7,848) (16,176) (5,749) Foreign (5,583) (2,408) (3,932) (57,564) (109,544) (37,919) Total provision $ 226,241 $ 178,046 $ 121,910 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the provision for income taxes using the statutory federal income tax rate to our effective income tax rate for the years ended December 31, is as follows: 2022 2021 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.1 1.7 2.5 Share-based payment awards (1.1) (0.6) (2.8) Excess foreign tax credits (1.2) (0.4) (2.2) Other U.S. tax credits and incentives (2.0) (3.3) (1.4) Foreign 0.6 (1.2) 1.3 Other — 0.2 1.0 Effective income tax rate 19.4 % 17.4 % 19.4 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) are comprised of the following as of December 31 (in thousands): 2022 2021 Deferred tax assets: Lease liabilities $ 79,402 $ 60,846 Compensation 69,305 71,770 Accrued expenses 52,416 92,936 Foreign affiliate prepayment 1,901 88,399 Long-lived assets 94,268 — Other 23,990 22,925 Deferred tax liabilities: Right-of-use assets (74,507) (56,044) Intangible assets (53,580) (79,198) Accrued revenue — (47,255) Prepaid assets (6,657) (14,021) Long-lived assets — (10,387) Foreign withholding tax (9,709) (11,917) Other (9,483) (9,267) Net deferred tax assets $ 167,346 $ 108,787 |
CAPITAL STOCK AND STOCK AWARD_2
CAPITAL STOCK AND STOCK AWARD PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | A summary expense recognized within personnel expenses in our consolidated statements of operations and comprehensive income for stock-based compensation is as follows (in thousands): 2022 2021 2020 Stock options $ 13,025 $ 16,128 $ 20,162 Stock awards 74,186 110,701 20,985 Company expense on ESPP discount 3,466 3,148 2,848 Total stock-based compensation expense $ 90,677 $ 129,977 $ 43,995 |
Schedule of Stock Option Activity | The following schedule summarizes stock option activity in the plans. All outstanding unvested options as of December 31, 2022, relate to time-based grants from 2018 through 2020. Options Weighted Aggregate Average Outstanding as of December 31, 2021 6,493,864 $ 76.88 $ 199,682 5.8 Exercised (1,126,384) 71.91 Forfeitures (8,684) 76.43 Outstanding as of December 31, 2022 5,358,796 $ 77.93 $ 73,065 5.1 Vested as of December 31, 2022 4,491,967 $ 78.17 4.7 Exercisable as of December 31, 2022 4,491,967 $ 78.17 4.7 |
Schedule of Intrinsic Value of Options Exercised | Information on the intrinsic value of options exercised is as follows (in thousands): 2022 $ 43,353 2021 20,427 2020 38,551 |
Schedule of Unvested Stock Option Grants | The following table summarizes these unvested stock option grants as of December 31, 2022: First Vesting Date Last Vesting Date Options Weighted Average Grant Date Fair Value (1) Unvested Options December 31, 2019 December 31, 2023 1,152,836 $ 20.13 223,752 December 31, 2020 December 31, 2024 1,632,187 13.87 643,077 2,785,023 $ 16.46 866,829 ________________________________ |
Schedule of Option Pricing Model Valuation Assumptions | The grant date fair value per option was estimated using the Black-Scholes option pricing model with the following assumptions: 2020 Grants 2019 Grants Weighted-average risk-free interest rate 1.6% 2.1% Expected dividend yield 2.5% 2.0% Weighted-average volatility 23% 25% Expected term (in years) 8.91 6.08 Weighted average fair value per option $ 13.88 $ 17.52 |
Schedule of Performance Based Restricted Shares and Restricted Stock Units | The following table summarizes activity related to our performance-based restricted shares and PSUs as of December 31, 2022: Number of Restricted Shares and Restricted Stock Units Weighted Average Unvested as of December 31, 2021 407,642 $ 72.21 Granted (1) 334,092 76.87 Performance-based grant adjustment (2) 59,338 71.43 Vested (266,651) 68.86 Forfeitures (16,613) 70.84 Unvested as of December 31, 2022 517,808 $ 76.89 ________________________________ (1) Amount represents PSU grants at target. (2) Amount represents incremental shares issuable for achieving 200 percent upside upon meeting certain adjusted gross profits targets in 2022. The following table summarizes unvested PSUs by vesting period at target: First Vesting Date Last Vesting Date Performance Shares and Stock Units Weighted Average Grant Date Fair Value (1) Unvested Performance Shares and Restricted Stock Units December 31, 2021 December 31, 2023 261,524 $ 74.84 248,708 December 31, 2022 December 31, 2024 294,928 76.74 269,100 556,452 $ 75.85 517,808 ________________________________ |
Schedule of Unvested Time-Based Restricted Share and Restricted Stock Unit Grants | The following table summarizes our unvested time-based restricted share and restricted stock unit grants as of December 31, 2022: Number of Restricted Weighted Average Unvested as of December 31, 2021 763,481 $ 69.42 Granted 745,689 77.55 Vested (568,617) 71.85 Forfeitures (51,141) 72.88 Unvested as of December 31, 2022 889,412 $ 74.26 |
Schedule of Fair Value Stock Awards Vested | A summary of the fair value of stock awards vested (in thousands): 2022 $ 74,186 2021 110,701 2020 20,985 |
Schedule of Employee Stock Purchase Plan Activity | The following is a summary of the employee stock purchase plan activity (dollar amounts in thousands): Shares Purchased Aggregate Cost Expense Recognized 2022 229,705 $ 19,643 $ 3,466 2021 220,970 17,838 3,148 2020 236,062 16,146 2,848 |
Schedule of Share Repurchase Program Activity | The activity under these authorizations is as follows (dollar amounts in thousands): Shares Repurchased Total Value of Shares 2022 Repurchases 14,226,190 $ 1,456,713 2021 Repurchases 6,154,364 580,818 2020 Repurchases 2,542,915 182,745 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Defined Contribution Plan Expense | Defined contribution plan expense, including matching contributions, is as follows (in thousands): 2022 $ 59,259 2021 48,714 2020 18,827 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Combinex | |
Business Acquisition [Line Items] | |
Schedule of Identifiable Intangible Assets and Estimated Useful Lives | Identifiable intangible assets and estimated useful lives are as follows (dollars in thousands): Estimated Life (years) Customer relationships 7 $ 3,942 |
Prime Distribution | |
Business Acquisition [Line Items] | |
Schedule of Identifiable Intangible Assets and Estimated Useful Lives | Identifiable intangible assets and estimated useful lives are as follows (dollars in thousands): Estimated Life (years) Customer relationships 7 $ 55,000 |
Schedule of Allocation of Purchase Consideration to Estimated Fair Value of Net Assets | The following is a summary of the allocation of purchase consideration to the estimated fair value of net assets for the acquisition of Prime Distribution (dollars in thousands): Current assets $ 8,879 Property and equipment 7,356 Right-of-use lease assets 35,017 Other intangible assets 55,000 Goodwill 176,727 Total assets 282,979 Current liabilities 12,243 Lease liabilities 35,017 Deferred tax liabilities 13,001 Net assets acquired $ 222,718 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | Reportable segment information as of, and for the years ended, December 31, 2022, 2021, and 2020, is as follows (dollars in thousands): NAST Global Forwarding All Other and Corporate Consolidated Twelve Months Ended December 31, 2022 Total revenues $ 15,827,467 $ 6,812,008 $ 2,057,150 $ 24,696,625 Income (loss) from operations 833,302 449,364 (15,884) 1,266,782 Depreciation and amortization 23,643 21,835 47,298 92,776 Total assets (1) 3,304,480 1,507,913 1,142,171 5,954,564 Average employee headcount 7,365 5,712 4,524 17,601 NAST Global Forwarding All Other and Corporate Consolidated Twelve Months Ended December 31, 2021 Total revenues $ 14,507,917 $ 6,729,790 $ 1,864,431 $ 23,102,138 Income (loss) from operations 585,351 510,756 (13,999) 1,082,108 Depreciation and amortization 26,243 22,823 42,193 91,259 Total assets (1) 3,349,578 2,843,239 835,295 7,028,112 Average employee headcount 6,764 5,071 3,926 15,761 NAST Global Forwarding All Other and Corporate Consolidated Twelve Months Ended December 31, 2020 Total revenues $ 11,312,553 $ 3,100,525 $ 1,794,028 $ 16,207,106 Income (loss) from operations 508,475 175,513 (10,720) 673,268 Depreciation and amortization 25,314 34,550 41,863 101,727 Total assets (1) 2,946,409 1,392,411 805,438 5,144,258 Average employee headcount 6,811 4,708 3,600 15,119 ________________________________ (1) All cash and cash equivalents and certain owned properties are included in All Other and Corporate. |
Schedule of Total Revenues and Long-Lived Assets by Geographic Regions | The following table presents our total revenues (based on location of the customer) and long-lived assets (including intangible and other assets) by geographic regions (in thousands): For the year ended December 31, 2022 2021 2020 Total revenues U.S. $ 20,696,448 $ 19,494,969 $ 13,896,382 Other locations 4,000,177 3,607,169 2,310,724 Total revenues $ 24,696,625 $ 23,102,138 $ 16,207,106 As of December 31, 2022 2021 2020 Long-lived assets U.S. $ 751,984 $ 587,339 $ 551,511 Other locations 142,529 151,866 163,860 Total long-lived assets $ 894,513 $ 739,205 $ 715,371 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Total Revenues Disaggregated by Major Service Line and Timing of Revenue Recognition | A summary of our total revenues disaggregated by major service line and timing of revenue recognition is presented below for each of our reportable segments for the twelve months ended December 31, 2022, 2021, and 2020, as follows (dollars in thousands): Twelve Months Ended December 31, 2022 NAST Global Forwarding All Other and Corporate Total Major service lines: Transportation and logistics services (1) $ 15,827,467 $ 6,812,008 $ 876,909 $ 23,516,384 Sourcing (2) — — 1,180,241 1,180,241 Total $ 15,827,467 $ 6,812,008 $ 2,057,150 $ 24,696,625 Twelve Months Ended December 31, 2021 NAST Global Forwarding All Other and Corporate Total Major service lines: Transportation and logistics services (1) $ 14,507,917 $ 6,729,790 $ 808,867 $ 22,046,574 Sourcing (2) — — 1,055,564 1,055,564 Total $ 14,507,917 $ 6,729,790 $ 1,864,431 $ 23,102,138 Twelve Months Ended December 31, 2020 NAST Global Forwarding All Other and Corporate Total Major service lines: Transportation and logistics services (1) $ 11,312,553 $ 3,100,525 $ 734,484 $ 15,147,562 Sourcing (2) — — 1,059,544 1,059,544 Total $ 11,312,553 $ 3,100,525 $ 1,794,028 $ 16,207,106 ________________________________ (1) Transportation and logistics services performance obligations are completed over time. (2) Sourcing performance obligations are completed at a point in time. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Expense, Remaining Lease Terms, Discount Rate and Other Information | Information regarding lease expense, remaining lease term, discount rate, and other select lease information is presented below as of December 31, 2022 and 2021, and for the twelve months ended December 31, 2022 and 2021 (dollars in thousands): Twelve Months Ended December 31, Lease Costs 2022 2021 2020 Operating lease expense $ 92,032 $ 85,521 $ 86,451 Short-term lease expense 7,151 8,307 15,130 Total lease expense $ 99,183 $ 93,828 $ 101,581 Twelve Months Ended December 31, Other Lease Information 2022 2021 2020 Operating cash outflows from operating leases $ 91,702 $ 85,244 $ 74,177 Right-of-use lease assets obtained in exchange for new lease liabilities (1) 161,886 52,931 95,005 As of December 31, Lease Term and Discount Rate 2022 2021 Weighted average remaining lease term (in years) (1) 6.4 6.4 Weighted average discount rate 3.5 % 3.0 % ________________________________ |
Schedule of Maturity of Lease Liabilities | The maturity of lease liabilities as of December 31, 2022, were as follows (in thousands): Maturity of Lease Liabilities Operating Leases 2023 $ 85,930 2024 77,868 2025 64,308 2026 53,098 2027 42,757 Thereafter 113,678 Total lease payments 437,639 Less: Interest (50,175) Present value of lease liabilities $ 387,464 |
CREDIT LOSSES (Tables)
CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Schedule of Allowance for Credit Loss on Accounts Receivable | A rollforward of our allowance for credit losses on our accounts receivable balance is presented below for the twelve months ended December 31, 2021 and 2022 (in thousands): Balance, December 31, 2020 $ 38,113 Provision 9,405 Write-offs (5,976) Balance, December 31, 2021 41,542 Provision (3,442) Write-offs (9,351) Balance, December 31, 2022 $ 28,749 |
Restructuring and Related Act_2
Restructuring and Related Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | A summary of the restructuring charges recognized is presented below (in thousands): Twelve Months Ended December 31, 2022 Severance (1) $ 18,872 Other selling, general, and administrative expenses (2) 15,150 Other personnel expenses (1) 2,662 Total $ 36,684 ________________________________ (1) Amounts are included within personnel expenses in our consolidated statement of operations. (2) We recognized expense of $14.8 million related to the impairment of certain capitalized internally developed software projects and $0.4 million related other miscellaneous exit costs within other selling, general, and administrative expenses in our consolidated statement of operations. The following table summarizes restructuring charges by reportable segment for the twelve months ended December 31, 2022 ($ in thousands): NAST Global Forwarding All Other and Corporate Consolidated Personnel expenses $ 6,323 $ 3,831 $ 11,380 $ 21,534 Other selling, general, and administrative expenses 3,175 3,174 8,801 15,150 |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes restructuring reserves included in our consolidated balance sheet as of December 31, 2022: Accrued Severance and Other Personnel Expenses Other Selling, General, and Administrative Expenses Total Balance, December 31, 2021 $ — $ — $ — Restructuring charges 21,534 15,150 36,684 Cash payments (2,558) (94) (2,652) Settled non-cash — (15,056) (15,056) Balance, December 31, 2022 $ 18,976 $ — $ 18,976 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Accounting Policies [Line Items] | ||
General payment terms upon completion of performance obligation | 30 days | |
Cash and cash equivalents | $ 217,482 | $ 257,413 |
Software | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life (in years) | 3 years | |
Held outside the United States | ||
Significant Accounting Policies [Line Items] | ||
Cash and cash equivalents | $ 204,700 | $ 217,100 |
Maximum | ||
Significant Accounting Policies [Line Items] | ||
Typical contract term | 1 year | |
Transportation services | ||
Significant Accounting Policies [Line Items] | ||
General payment terms upon completion of performance obligation | 30 days | |
Value-added logistics services | ||
Significant Accounting Policies [Line Items] | ||
General payment terms upon completion of performance obligation | 30 days | |
Sourcing services | Minimum | ||
Significant Accounting Policies [Line Items] | ||
General payment terms upon completion of performance obligation | 20 days | |
Sourcing services | Maximum | ||
Significant Accounting Policies [Line Items] | ||
General payment terms upon completion of performance obligation | 30 days | |
Logistics and transportation | ||
Significant Accounting Policies [Line Items] | ||
General payment terms upon completion of performance obligation | 30 days | |
Logistics and transportation | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Typical contract term | 1 year | |
Stock awards | Minimum | ||
Significant Accounting Policies [Line Items] | ||
Stock award vesting period (in years) | 3 years | |
Stock awards | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Stock award vesting period (in years) | 5 years | |
Restricted shares and restricted stock units | Minimum | ||
Significant Accounting Policies [Line Items] | ||
Shares and restricted units grants, discount for post-vesting holding restrictions (percent) | 12% | |
Restricted shares and restricted stock units | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Shares and restricted units grants, discount for post-vesting holding restrictions (percent) | 24% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Depreciation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Depreciation expense | $ 38,102 | $ 39,790 | $ 42,890 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 449,828 | $ 442,112 |
Less: accumulated depreciation and amortization | (290,396) | (302,281) |
Net property and equipment | 159,432 | 139,831 |
Furniture, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 266,017 | 292,224 |
Buildings(1) | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 60,766 | 60,059 |
Corporate aircraft(1) | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 23,760 | 0 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 78,347 | 70,630 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 11,005 | 11,014 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 9,933 | 8,185 |
Building and corporate aircraft | Prepaid expenses and other current assets | ||
Property, Plant and Equipment [Line Items] | ||
Held-for-sale assets | 35,000 | |
Fair value of assets held for sale | $ 64,000 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Amortization Expense of Purchased and Internally Developed Software (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Amortization of purchased and internally developed software | $ 31,229 | $ 25,975 | $ 22,612 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Purchased and Internally Developed Software (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Software [Line Items] | ||
Less accumulated amortization | $ (84,222) | $ (114,183) |
Net software | 88,800 | 70,112 |
Purchased software | ||
Software [Line Items] | ||
Software | 8,930 | 30,312 |
Internally developed software | ||
Software [Line Items] | ||
Software | $ 164,092 | $ 153,983 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Change in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,484,754 | $ 1,487,187 |
Acquisitions | 10,997 | |
Foreign currency translation | (13,941) | (13,430) |
Ending balance | 1,470,813 | 1,484,754 |
NAST | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,196,333 | 1,203,972 |
Acquisitions | 243 | |
Foreign currency translation | (8,257) | (7,882) |
Ending balance | 1,188,076 | 1,196,333 |
Global Forwarding | ||
Goodwill [Roll Forward] | ||
Beginning balance | 210,391 | 213,982 |
Acquisitions | 0 | |
Foreign currency translation | (4,202) | (3,591) |
Ending balance | 206,189 | 210,391 |
All Other and Corporate | ||
Goodwill [Roll Forward] | ||
Beginning balance | 78,030 | 69,233 |
Acquisitions | 10,754 | |
Foreign currency translation | (1,482) | (1,957) |
Ending balance | $ 76,548 | $ 78,030 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill or intangible asset impairment | $ 0 | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-lived intangibles | ||
Finite-lived intangibles, cost | $ 162,358 | $ 169,308 |
Accumulated Amortization | (106,932) | (88,302) |
Total finite-lived intangible assets | 55,426 | 81,006 |
Indefinite-lived intangibles | ||
Total intangibles, Cost | 170,958 | 177,908 |
Total intangibles, Net | 64,026 | 89,606 |
Trademarks | ||
Indefinite-lived intangibles | ||
Indefinite-lived intangibles | 8,600 | 8,600 |
Customer relationships | ||
Finite-lived intangibles | ||
Finite-lived intangibles, cost | 162,358 | 169,308 |
Accumulated Amortization | (106,932) | (88,302) |
Total finite-lived intangible assets | $ 55,426 | $ 81,006 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization Expense of Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 23,445 | $ 25,494 | $ 36,225 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Estimated amortization expense | ||
2023 | $ 20,685 | |
2024 | 12,573 | |
2025 | 11,201 | |
2026 | 8,961 | |
2027 | 1,801 | |
Thereafter | 205 | |
Total finite-lived intangible assets | 55,426 | $ 81,006 |
NAST | ||
Estimated amortization expense | ||
2023 | 8,084 | |
2024 | 8,008 | |
2025 | 7,857 | |
2026 | 7,857 | |
2027 | 1,310 | |
Thereafter | 0 | |
Global Forwarding | ||
Estimated amortization expense | ||
2023 | 11,529 | |
2024 | 3,493 | |
2025 | 2,272 | |
2026 | 369 | |
2027 | 0 | |
Thereafter | 0 | |
All Other and Corporate | ||
Estimated amortization expense | ||
2023 | 1,072 | |
2024 | 1,072 | |
2025 | 1,072 | |
2026 | 735 | |
2027 | 491 | |
Thereafter | $ 205 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - Level 3 - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Level 3 Fair Value | ||
Assets at fair value | $ 0 | $ 0 |
Liabilities at fair value | $ 0 | $ 0 |
FINANCING ARRANGEMENTS - Compon
FINANCING ARRANGEMENTS - Components of Short-term and Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Carrying value | $ 1,973,704 | $ 1,918,649 |
Less: Current maturities and short-term borrowing | (1,053,655) | (525,000) |
Long-term debt | $ 920,049 | $ 1,393,649 |
Revolving credit facility | 364 Credit Agreement | Line of credit | ||
Debt Instrument [Line Items] | ||
Average interest rate (percent) | 5.12% | 0% |
Carrying value | $ 379,000 | $ 0 |
Line of credit | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Average interest rate (percent) | 0% | 1.23% |
Carrying value | $ 0 | $ 525,000 |
Senior Notes | Series A Notes | ||
Debt Instrument [Line Items] | ||
Average interest rate (percent) | 3.97% | 3.97% |
Carrying value | $ 175,000 | $ 175,000 |
Senior Notes | Series B Notes | ||
Debt Instrument [Line Items] | ||
Average interest rate (percent) | 4.26% | 4.26% |
Carrying value | $ 150,000 | $ 150,000 |
Senior Notes | Series C Notes | ||
Debt Instrument [Line Items] | ||
Average interest rate (percent) | 4.60% | 4.60% |
Carrying value | $ 175,000 | $ 175,000 |
Secured Debt | Receivables securitization facility | ||
Debt Instrument [Line Items] | ||
Average interest rate (percent) | 5.01% | 0.73% |
Carrying value | $ 499,655 | $ 299,481 |
Unsecured Debt | Senior Notes | ||
Debt Instrument [Line Items] | ||
Average interest rate (percent) | 4.20% | 4.20% |
Carrying value | $ 595,049 | $ 594,168 |
FINANCING ARRANGEMENTS - Narrat
FINANCING ARRANGEMENTS - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Feb. 01, 2022 USD ($) | Dec. 31, 2021 USD ($) | Aug. 27, 2013 USD ($) | |
Debt Instrument [Line Items] | ||||
Carrying value | $ 1,973,704,000 | $ 1,918,649,000 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt fair value | 468,700,000 | |||
Revolving credit facility | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Maximum commitment | $ 1,000,000,000 | |||
Maximum leverage ratio | 3.75 | |||
Carrying value | $ 0 | 525,000,000 | ||
Revolving credit facility | Line of credit | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee (percent) | 0.07% | |||
Revolving credit facility | Line of credit | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee (percent) | 0.15% | |||
Revolving credit facility | Line of credit | Federal Funds Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (percent) | 0.50% | |||
Note Purchase Agreement | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Maximum leverage ratio | 3.50 | |||
Debt instrument principal amount | $ 500,000,000 | |||
Minimum interest coverage ratio | 2 | |||
Maximum priority debt to total assets ratio (percent) | 15% | |||
Debt instrument, redemption price (percent) | 100% | |||
Receivables securitization facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Carrying value | $ 499,655,000 | 299,481,000 | ||
Receivables securitization facility | Secured Debt | Wells Fargo Bank N.A. and Bank of America N.A. | ||||
Debt Instrument [Line Items] | ||||
Current funding | 500,000,000 | $ 500,000,000 | 300,000,000 | |
Senior Notes | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Debt fair value | $ 569,500,000 | |||
Debt instrument, redemption price (percent) | 101% | |||
Debt instrument annual interest rate (percent) | 4.20% | |||
Debt Instrument effective yield (percent) | 4.39% | |||
Carrying value | $ 595,049,000 | $ 594,168,000 | ||
Threshold for holders of principal outstanding to declare principal and unpaid interest payable (percent) | 25% | |||
364 Credit Agreement | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Maximum commitment | $ 500,000,000 | |||
Maximum leverage ratio | 3 | |||
364 Credit Agreement | Revolving credit facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee (percent) | 0.05% | |||
364 Credit Agreement | Revolving credit facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee (percent) | 0.175% | |||
364 Credit Agreement | Revolving credit facility | Federal Funds Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (percent) | 0.50% | |||
364 Credit Agreement | Revolving credit facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (percent) | 1% | |||
364 Credit Agreement | Revolving credit facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (percent) | 0.625% | |||
364 Credit Agreement | Revolving credit facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (percent) | 1.25% | |||
364 Credit Agreement | Revolving credit facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (percent) | 0% | |||
US Bank | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Maximum commitment | $ 15,000,000 | |||
US Bank | Standby letters of credit | ||||
Debt Instrument [Line Items] | ||||
Current funding | $ 7,900,000 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
Estimated effect on income taxes payable if permanently reinvested foreign earnings were repatriated | $ 2 | ||
Payroll tax deferral, CARES Act | $ 14.7 | ||
Unrecognized tax benefits and related interest and penalties, all of which would affect our effective tax rate if recognized | $ 43 | ||
Unrecognized tax benefits estimated impact on effective tax rate if recognized in current year (percent) | 3.70% | ||
Expected decrease in unrecognized tax benefits in next twelve months due to lapsing statutes | $ 3 | ||
Interest and penalties recognized | 0.6 | 0.9 | $ 1 |
Interest and penalties accrued | 3.9 | 5.6 | |
Foreign net operating loss carryforwards tax effect | 9 | 8.6 | |
Foreign operating loss carryforwards | |||
Income Taxes [Line Items] | |||
Valuation allowance against deferred tax asset | $ 1.4 | $ 2.5 |
INCOME TAXES - Income Before Pr
INCOME TAXES - Income Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 799,553 | $ 566,847 | $ 499,384 |
Foreign | 367,212 | 455,444 | 128,947 |
Income before provision for income taxes | $ 1,166,765 | $ 1,022,291 | $ 628,331 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Unrecognized Tax Benefits, excluding Interest and Penalties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits | |||
Unrecognized tax benefits, beginning of period | $ 37,302 | $ 36,216 | $ 33,938 |
Additions based on tax positions related to the current year | 4,064 | 3,530 | 3,172 |
Additions for tax positions of prior years | 3,016 | 1,919 | 1,568 |
Reductions for tax positions of prior years | (247) | (2,431) | (124) |
Lapse in statute of limitations | (5,026) | (1,932) | (2,276) |
Settlements | (53) | 0 | (62) |
Unrecognized tax benefits, end of the period | $ 39,056 | $ 37,302 | $ 36,216 |
INCOME TAXES - Components of th
INCOME TAXES - Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax provision: | |||
Federal | $ 153,349 | $ 165,218 | $ 99,901 |
State | 33,309 | 36,718 | 19,825 |
Foreign | 97,147 | 85,654 | 40,103 |
Current tax provision | 283,805 | 287,590 | 159,829 |
Deferred provision (benefit): | |||
Federal | (44,133) | (90,960) | (28,238) |
State | (7,848) | (16,176) | (5,749) |
Foreign | (5,583) | (2,408) | (3,932) |
Deferred tax provision (benefit) | (57,564) | (109,544) | (37,919) |
Total provision | $ 226,241 | $ 178,046 | $ 121,910 |
INCOME TAXES - Reconciliation_2
INCOME TAXES - Reconciliation of the Provision for Income Taxes using Statutory Federal Income Tax Rate to the Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21% | 21% | 21% |
State income taxes, net of federal benefit | 2.10% | 1.70% | 2.50% |
Share-based payment awards | (1.10%) | (0.60%) | (2.80%) |
Excess foreign tax credits | (1.20%) | (0.40%) | (2.20%) |
Other U.S. tax credits and incentives | (2.00%) | (3.30%) | (1.40%) |
Foreign | 0.60% | (1.20%) | 1.30% |
Other | 0% | 0.20% | 1% |
Effective income tax rate | 19.40% | 17.40% | 19.40% |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Lease liabilities | $ 79,402 | $ 60,846 |
Compensation | 69,305 | 71,770 |
Accrued expenses | 52,416 | 92,936 |
Foreign affiliate prepayment | 1,901 | 88,399 |
Long-lived assets | 94,268 | 0 |
Other | 23,990 | 22,925 |
Deferred tax liabilities: | ||
Right-of-use assets | (74,507) | (56,044) |
Intangible assets | (53,580) | (79,198) |
Accrued revenue | 0 | (47,255) |
Prepaid assets | (6,657) | (14,021) |
Long-lived assets | 0 | (10,387) |
Foreign withholding tax | (9,709) | (11,917) |
Other | (9,483) | (9,267) |
Net deferred tax assets (liabilities) | $ 167,346 | $ 108,787 |
CAPITAL STOCK AND STOCK AWARD_3
CAPITAL STOCK AND STOCK AWARD PLANS - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
May 05, 2022 shares | Dec. 31, 2022 USD ($) vote $ / shares shares | Dec. 31, 2021 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | |
Preferred stock, outstanding (in shares) | 0 | 0 | |
Common stock, authorized (in shares) | 480,000,000 | 480,000,000 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | |
Entitled vote for each share of common stock (vote) | vote | 1 | ||
Increase in number of shares authorized for award (in shares) | 4,261,884 | ||
Shares available for stock awards (in shares) | 4,377,540 | ||
Unrecognized compensation expense related to stock options | $ | $ 13.4 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | ||
Restricted shares and restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense related to stock awards | $ | $ 119 | ||
Restricted shares and restricted stock units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares and restricted stock unit grants, discount for post-vesting holding restrictions (percent) | 12% | ||
Restricted shares and restricted stock units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares and restricted stock unit grants, discount for post-vesting holding restrictions (percent) | 24% | ||
Performance-based restricted shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock award vesting period (in years) | 5 years | ||
Performance-based restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock award vesting period (in years) | 3 years | ||
Upside opportunity contingent on obtaining certain targets (percent) | 200% |
CAPITAL STOCK AND STOCK AWARD_4
CAPITAL STOCK AND STOCK AWARD PLANS - Total Compensation Expense Recognized in Statements of Operations for Stock-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 90,677 | $ 129,977 | $ 43,995 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 13,025 | 16,128 | 20,162 |
Stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 74,186 | 110,701 | 20,985 |
Company expense on ESPP discount | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 3,466 | $ 3,148 | $ 2,848 |
CAPITAL STOCK AND STOCK AWARD_5
CAPITAL STOCK AND STOCK AWARD PLANS - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Options | ||
Outstanding, beginning balance (in shares) | 6,493,864 | |
Exercised (in shares) | (1,126,384) | |
Forfeitures (in shares) | (8,684) | |
Outstanding, ending balance (in shares) | 5,358,796 | 6,493,864 |
Vested (in shares) | 4,491,967 | |
Exercisable (in shares) | 4,491,967 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 76.88 | |
Exercised (in dollars per share) | 71.91 | |
Terminated (in dollars per share) | 76.43 | |
Outstanding, ending balance (in dollars per share) | 77.93 | $ 76.88 |
Vested (in dollars per share) | 78.17 | |
Exercisable (in dollars per share) | $ 78.17 | |
Aggregate Intrinsic Value (in thousands) | ||
Outstanding, aggregate intrinsic value | $ 73,065 | $ 199,682 |
Average Remaining Life (years) | ||
Outstanding, average remaining life (in years) | 5 years 1 month 6 days | 5 years 9 months 18 days |
Vested, average remaining life (in years) | 4 years 8 months 12 days | |
Exercisable, average remaining life (in years) | 4 years 8 months 12 days |
CAPITAL STOCK AND STOCK AWARD_6
CAPITAL STOCK AND STOCK AWARD PLANS - Intrinsic Value of Options Exercised (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Intrinsic value of options exercised | $ 43,353 | $ 20,427 | $ 38,551 |
CAPITAL STOCK AND STOCK AWARD_7
CAPITAL STOCK AND STOCK AWARD PLANS - Stock Options Grants by First Vesting Date (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options granted, net of forfeitures (in shares) | 2,785,023 |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 16.46 |
Unvested options (in shares) | 866,829 |
First Vesting Date Dec 31 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options granted, net of forfeitures (in shares) | 1,152,836 |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 20.13 |
Unvested options (in shares) | 223,752 |
First Vesting Date Dec 31 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options granted, net of forfeitures (in shares) | 1,632,187 |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 13.87 |
Unvested options (in shares) | 643,077 |
CAPITAL STOCK AND STOCK AWARD_8
CAPITAL STOCK AND STOCK AWARD PLANS - Assumptions Used in Estimating the Fair Value Per Option (Details) - Stock options - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Assumptions and Methodology | ||
Weighted-average risk-free interest rate (percent) | 1.60% | 2.10% |
Expected dividend yield (percent) | 2.50% | 2% |
Weighted-average volatility (percent) | 23% | 25% |
Expected term (in years) | 8 years 10 months 28 days | 6 years 29 days |
Weighted average fair value per option (in dollars per share) | $ 13.88 | $ 17.52 |
CAPITAL STOCK AND STOCK AWARD_9
CAPITAL STOCK AND STOCK AWARD PLANS - Unvested Performance-Based Restricted Shares and Restricted Stock Units (Details) - Performance-based restricted shares and restricted stock units | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Number of Restricted Shares and Restricted Stock Units | |
Unvested, beginning balance (in shares) | shares | 407,642 |
Granted (in shares) | shares | 334,092 |
Performance-based grant adjustment (in shares) | shares | 59,338 |
Vested (in shares) | shares | (266,651) |
Forfeitures (in shares) | shares | (16,613) |
Unvested, ending balance (in shares) | shares | 517,808 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 72.21 |
Granted (in dollars per share) | $ / shares | 76.87 |
Performance-based grant adjustment (in dollars per share) | $ / shares | 71.43 |
Vested (in dollars per share) | $ / shares | 68.86 |
Forfeitures (in dollars per share) | $ / shares | 70.84 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 76.89 |
Upside opportunity contingent on obtaining certain targets (percent) | 200% |
CAPITAL STOCK AND STOCK AWAR_10
CAPITAL STOCK AND STOCK AWARD PLANS - Performance-Based Shares and Units by First Vesting Date (Details) - $ / shares | 12 Months Ended | ||
Feb. 08, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Performance-based restricted shares and restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares and stock units granted, net of forfeitures (in shares) | 556,452 | ||
Weighted average grant date fair value (in dollars per share) | $ 75.85 | ||
Unvested performance shares and restricted stock units (in shares) | 517,808 | 407,642 | |
Granted (in shares) | 334,092 | ||
Weighted average grant date fair value (in dollars per share) | $ 76.87 | ||
Performance-based restricted shares and restricted stock units | First Vesting Date Dec 31 2021 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares and stock units granted, net of forfeitures (in shares) | 261,524 | ||
Weighted average grant date fair value (in dollars per share) | $ 74.84 | ||
Unvested performance shares and restricted stock units (in shares) | 248,708 | ||
Performance-based restricted shares and restricted stock units | First Vesting Date Dec 31 2022 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares and stock units granted, net of forfeitures (in shares) | 294,928 | ||
Weighted average grant date fair value (in dollars per share) | $ 76.74 | ||
Unvested performance shares and restricted stock units (in shares) | 269,100 | ||
Performance-based restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock award vesting period (in years) | 3 years | ||
Performance-based restricted stock units | First Vesting Date Dec 31 2023 | Forecast | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 272,455 | ||
Weighted average grant date fair value (in dollars per share) | $ 92.15 | ||
Stock award vesting period (in years) | 3 years |
CAPITAL STOCK AND STOCK AWAR_11
CAPITAL STOCK AND STOCK AWARD PLANS - Unvested Time-Based Restricted Shares and Restricted Stock Units (Details) - $ / shares | 12 Months Ended | ||
Feb. 08, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Time-based restricted shares and restricted stock units | |||
Number of Restricted Shares and Stock Units | |||
Unvested, beginning balance (in shares) | 763,481 | ||
Granted (in shares) | 745,689 | ||
Vested (in shares) | (568,617) | ||
Forfeitures (in shares) | (51,141) | ||
Unvested, ending balance (in shares) | 889,412 | 763,481 | |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance (in dollars per share) | $ 69.42 | ||
Granted (in dollars per share) | 77.55 | ||
Vested (in dollars per share) | 71.85 | ||
Forfeitures (in dollars per share) | 72.88 | ||
Unvested, ending balance (in dollars per share) | $ 74.26 | $ 69.42 | |
Time-based restricted stock units | |||
Weighted Average Grant Date Fair Value | |||
Stock award vesting period (in years) | 3 years | 5 years | |
Time-based restricted stock units | Forecast | |||
Number of Restricted Shares and Stock Units | |||
Granted (in shares) | 688,341 | ||
Weighted Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 92.74 | ||
Stock award vesting period (in years) | 3 years |
CAPITAL STOCK AND STOCK AWAR_12
CAPITAL STOCK AND STOCK AWARD PLANS - Fair Value of Full Value Stock Awards Vested (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Full Value Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | $ 74,186 | $ 110,701 | $ 20,985 |
CAPITAL STOCK AND STOCK AWAR_13
CAPITAL STOCK AND STOCK AWARD PLANS - Employee Stock Purchase Plan Activity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense Recognized by the Company | $ 90,677,000 | $ 129,977,000 | $ 43,995,000 |
Company expense on ESPP discount | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense Recognized by the Company | $ 3,466,000 | $ 3,148,000 | $ 2,848,000 |
1997 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Purchased by Employees (in shares) | 229,705 | 220,970 | 236,062 |
Aggregate Costs to Employees | $ 19,643,000 | $ 17,838,000 | $ 16,146,000 |
Maximum employee contribution to purchase company stock | $ 10,000 | ||
Discount rate used to determine purchase price (percent) | 15% | ||
1997 Employee Stock Purchase Plan | Company expense on ESPP discount | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense Recognized by the Company | $ 3,466,000 | $ 3,148,000 | $ 2,848,000 |
CAPITAL STOCK AND STOCK AWAR_14
CAPITAL STOCK AND STOCK AWARD PLANS - Share Repurchase Programs Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 09, 2021 | |
Share Repurchases [Line Items] | ||||
Total Value of Shares Repurchased | $ 1,456,713 | $ 580,817 | $ 182,745 | |
Share Repurchase Programs | ||||
Share Repurchases [Line Items] | ||||
Shares Repurchased (in shares) | 14,226,190 | 6,154,364 | 2,542,915 | |
Total Value of Shares Repurchased | $ 1,456,713 | $ 580,818 | $ 182,745 | |
Number of additional shares authorized (in shares) | 20,000,000 | |||
Shares remaining for under repurchase authorization (in shares) | 7,409,198 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Defined Contribution Plan Expense, including Matching Contributions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Defined contribution plan expense | $ 59,259 | $ 48,714 | $ 18,827 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Defined contribution match | 6% | 6% |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 03, 2021 | Mar. 02, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||||
Total purchase consideration net of cash acquired | $ 0 | $ 14,750 | $ 223,230 | ||
Goodwill recorded in acquisition | $ 10,997 | ||||
Combinex | |||||
Business Acquisition [Line Items] | |||||
Total purchase consideration net of cash acquired | $ 14,700 | ||||
Goodwill recorded in acquisition | $ 10,800 | ||||
Prime Distribution | |||||
Business Acquisition [Line Items] | |||||
Cash consideration for acquisition | $ 222,700 | ||||
Goodwill recorded in acquisition | $ 176,700 |
ACQUISITIONS - Allocation of Pu
ACQUISITIONS - Allocation of Purchase Consideration (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 02, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,470,813 | $ 1,484,754 | $ 1,487,187 | |
Prime Distribution | ||||
Business Acquisition [Line Items] | ||||
Current assets | $ 8,879 | |||
Property and equipment | 7,356 | |||
Right-of-use lease assets | 35,017 | |||
Other intangible assets | 55,000 | |||
Goodwill | 176,727 | |||
Total assets | 282,979 | |||
Current liabilities | 12,243 | |||
Lease liabilities | 35,017 | |||
Deferred tax liabilities | 13,001 | |||
Net assets acquired | $ 222,718 |
ACQUISITIONS - Identifiable Int
ACQUISITIONS - Identifiable Intangible Assets and Estimated Useful Lives (Details) - USD ($) $ in Thousands | Jun. 03, 2021 | Mar. 02, 2020 |
Prime Distribution | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets | $ 55,000 | |
Customer relationships | Combinex | ||
Business Acquisition [Line Items] | ||
Estimated Life (years) | 7 years | |
Identifiable intangible assets | $ 3,942 | |
Customer relationships | Prime Distribution | ||
Business Acquisition [Line Items] | ||
Estimated Life (years) | 7 years | |
Identifiable intangible assets | $ 55,000 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (segment) | 2 |
SEGMENT REPORTING - Summary of
SEGMENT REPORTING - Summary of Segment Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) employee | Dec. 31, 2021 USD ($) employee | Dec. 31, 2020 USD ($) employee | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 24,696,625 | $ 23,102,138 | $ 16,207,106 |
Income (loss) from operations | 1,266,782 | 1,082,108 | 673,268 |
Depreciation and amortization | 92,776 | 91,259 | 101,727 |
Total assets | $ 5,954,564 | $ 7,028,112 | $ 5,144,258 |
Average headcount (employee) | employee | 17,601 | 15,761 | 15,119 |
NAST | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 15,827,467 | $ 14,507,917 | $ 11,312,553 |
Income (loss) from operations | 833,302 | 585,351 | 508,475 |
Depreciation and amortization | 23,643 | 26,243 | 25,314 |
Total assets | $ 3,304,480 | $ 3,349,578 | $ 2,946,409 |
Average headcount (employee) | employee | 7,365 | 6,764 | 6,811 |
Global Forwarding | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 6,812,008 | $ 6,729,790 | $ 3,100,525 |
Income (loss) from operations | 449,364 | 510,756 | 175,513 |
Depreciation and amortization | 21,835 | 22,823 | 34,550 |
Total assets | $ 1,507,913 | $ 2,843,239 | $ 1,392,411 |
Average headcount (employee) | employee | 5,712 | 5,071 | 4,708 |
All Other and Corporate | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 2,057,150 | $ 1,864,431 | $ 1,794,028 |
Income (loss) from operations | (15,884) | (13,999) | (10,720) |
Depreciation and amortization | 47,298 | 42,193 | 41,863 |
Total assets | $ 1,142,171 | $ 835,295 | $ 805,438 |
Average headcount (employee) | employee | 4,524 | 3,926 | 3,600 |
SEGMENT REPORTING - Total Reven
SEGMENT REPORTING - Total Revenues Based on Location of the Customer and Long-Lived Assets by Geographic Regions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total revenues | |||
Revenues | $ 24,696,625 | $ 23,102,138 | $ 16,207,106 |
Long-lived assets | |||
Total long-lived assets | 894,513 | 739,205 | 715,371 |
U.S. | |||
Total revenues | |||
Revenues | 20,696,448 | 19,494,969 | 13,896,382 |
Long-lived assets | |||
Total long-lived assets | 751,984 | 587,339 | 551,511 |
Other locations | |||
Total revenues | |||
Revenues | 4,000,177 | 3,607,169 | 2,310,724 |
Long-lived assets | |||
Total long-lived assets | $ 142,529 | $ 151,866 | $ 163,860 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Total Revenues Disaggregated by Major Service Line and Timing of Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 24,696,625 | $ 23,102,138 | $ 16,207,106 |
NAST | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 15,827,467 | 14,507,917 | 11,312,553 |
Global Forwarding | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 6,812,008 | 6,729,790 | 3,100,525 |
All Other and Corporate | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,057,150 | 1,864,431 | 1,794,028 |
Operating Segments | NAST | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 15,827,467 | 14,507,917 | 11,312,553 |
Operating Segments | Global Forwarding | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 6,812,008 | 6,729,790 | 3,100,525 |
Operating Segments | All Other and Corporate | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,057,150 | 1,864,431 | 1,794,028 |
Transportation | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 23,516,384 | 22,046,574 | 15,147,562 |
Transportation | Performance obligations completed over time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 23,516,384 | 22,046,574 | 15,147,562 |
Transportation | Operating Segments | NAST | Performance obligations completed over time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 15,827,467 | 14,507,917 | 11,312,553 |
Transportation | Operating Segments | Global Forwarding | Performance obligations completed over time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 6,812,008 | 6,729,790 | 3,100,525 |
Transportation | Operating Segments | All Other and Corporate | Performance obligations completed over time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 876,909 | 808,867 | 734,484 |
Sourcing | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,180,241 | 1,055,564 | 1,059,544 |
Sourcing | Performance obligations completed at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,180,241 | 1,055,564 | 1,059,544 |
Sourcing | Operating Segments | NAST | Performance obligations completed at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Sourcing | Operating Segments | Global Forwarding | Performance obligations completed at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Sourcing | Operating Segments | All Other and Corporate | Performance obligations completed at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 1,180,241 | $ 1,055,564 | $ 1,059,544 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Product Concentration Risk | Revenue | Transportation services | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenues attributable to services | 93% | 93% | 91% |
Product Concentration Risk | Revenue | Sourcing | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenues attributable to services | 5% | 5% | 7% |
Product Concentration Risk | Revenue | Value-added logistics services | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenues attributable to services | 2% | 2% | 2% |
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Typical contract term | 1 year |
LEASES - Lease Data (Details)
LEASES - Lease Data (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Lease Costs | ||||
Operating lease expense | $ 92,032 | $ 85,521 | $ 86,451 | |
Short-term lease expense | 7,151 | 8,307 | 15,130 | |
Total lease expense | 99,183 | 93,828 | 101,581 | |
Other Lease Information | ||||
Operating cash flows from operating leases | 91,702 | 85,244 | 74,177 | |
Right-of-use lease assets obtained in exchange for new lease liabilities | $ 161,886 | $ 52,931 | $ 95,005 | |
Lease Term and Discount Rate | ||||
Weighted average remaining lease term (in years) | 6 years 4 months 24 days | 6 years 4 months 24 days | ||
Weighted average discount rate (percent) | 3.50% | 3% | ||
Lessee, Lease, Description [Line Items] | ||||
Weighted average remaining lease term, excluding Chicago office space (in years) | 5 years 3 months 18 days | |||
Chicago office space | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term (in years) | 15 years |
LEASES - Maturity of Lease Liab
LEASES - Maturity of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Maturity of Lease Liabilities | |
2023 | $ 85,930 |
2024 | 77,868 |
2025 | 64,308 |
2026 | 53,098 |
2027 | 42,757 |
Thereafter | 113,678 |
Total lease payments | 437,639 |
Less: Interest | (50,175) |
Present value of lease liabilities | $ 387,464 |
CREDIT LOSSES (Details)
CREDIT LOSSES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Rollforward of Allowance for Credit Loss | ||
Allowance for credit loss, beginning balance | $ 41,542 | $ 38,113 |
Provision | (3,442) | 9,405 |
Write-offs | (9,351) | (5,976) |
Allowance for credit loss, ending balance | $ 28,749 | $ 41,542 |
CHANGES IN ACCUMULATED OTHER _2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |||
Accumulated other comprehensive loss | $ 88,860 | $ 61,134 | |
Other comprehensive (loss) income | $ (27,726) | $ (15,136) | $ 30,151 |
RESTRUCTURING - Narrative (Deta
RESTRUCTURING - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 36,684 | |
Payments for restructuring | 2,652 | |
Employee Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 18,872 | |
Other Selling, General, and Administrative Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 15,150 | |
Payments for restructuring | 94 | |
Other Selling, General, and Administrative Expenses | Employee Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 15,150 | |
Forecast | ||
Restructuring Cost and Reserve [Line Items] | ||
Payments for restructuring | $ 19,000 |
RESTRUCTURING - Cost (Details)
RESTRUCTURING - Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 36,684 |
Other Selling, General, and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 15,150 |
Impairment of certain capitalized internally developed software projects | 14,800 |
Exit costs | 400 |
Other personnel expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 2,662 |
Employee Severance | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 18,872 |
Employee Severance | Other Selling, General, and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 15,150 |
RESTRUCTURING - Restructuring C
RESTRUCTURING - Restructuring Charges by Segment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 36,684 |
Other Selling, General, and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 15,150 |
Employee Severance | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 18,872 |
Employee Severance | Other Selling, General, and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 15,150 |
Employee Severance | Personnel Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 21,534 |
Employee Severance | NAST | Other Selling, General, and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 3,175 |
Employee Severance | NAST | Personnel Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 6,323 |
Employee Severance | Global Forwarding | Other Selling, General, and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 3,174 |
Employee Severance | Global Forwarding | Personnel Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 3,831 |
Employee Severance | All Other and Corporate | Other Selling, General, and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 8,801 |
Employee Severance | All Other and Corporate | Personnel Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 11,380 |
RESTRUCTURING - Reserve (Detail
RESTRUCTURING - Reserve (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance, December 31, 2021 | $ 0 |
Restructuring charges | 36,684 |
Cash payments | (2,652) |
Settled non-cash | (15,056) |
Accrued Severance and Other Personnel Expenses | |
Restructuring Reserve [Roll Forward] | |
Balance, December 31, 2021 | 0 |
Restructuring charges | 21,534 |
Cash payments | (2,558) |
Settled non-cash | 0 |
Balance, December 31, 2022 | 18,976 |
Other Selling, General, and Administrative Expenses | |
Restructuring Reserve [Roll Forward] | |
Balance, December 31, 2021 | 0 |
Restructuring charges | 15,150 |
Cash payments | (94) |
Settled non-cash | (15,056) |
Balance, December 31, 2022 | $ 0 |