Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 04, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | EXPD | |
Entity Registrant Name | EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. | |
Entity Central Index Key | 0000746515 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 170,301,245 | |
Entity File Number | 0-13468 | |
Entity Tax Identification Number | 91-1069248 | |
Entity Address, Address Line One | 1015 Third Avenue | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98104 | |
City Area Code | 206 | |
Local Phone Number | 674-3400 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | WA | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 1,215,970 | $ 923,735 |
Accounts receivable, less allowance for doubtful accounts of $11,853 at September 30, 2019 and $15,345 at December 31, 2018 | 1,319,032 | 1,581,530 |
Deferred contract costs | 130,690 | 159,510 |
Other | 103,521 | 70,041 |
Total current assets | 2,769,213 | 2,734,816 |
Property and equipment, less accumulated depreciation and amortization of $468,059 at September 30, 2019 and $446,977 at December 31, 2018 | 494,153 | 504,105 |
Operating lease right-of-use assets | 374,231 | 0 |
Goodwill | 7,927 | 7,927 |
Deferred federal and state income taxes, net | 44,351 | 40,465 |
Other assets, net | 16,578 | 27,246 |
Total assets | 3,706,453 | 3,314,559 |
Current Liabilities: | ||
Accounts payable | 744,002 | 902,259 |
Accrued expenses, primarily salaries and related costs | 207,752 | 215,813 |
Contract liabilities | 152,717 | 190,343 |
Current portion of operating lease liabilities | 61,842 | 0 |
Federal, state and foreign income taxes | 17,273 | 18,424 |
Total current liabilities | 1,183,586 | 1,326,839 |
Noncurrent portion of operating lease liabilities | 313,580 | 0 |
Commitments and contingencies | 0 | 0 |
Shareholders’ Equity: | ||
Preferred stock, none issued | 0 | 0 |
Common stock, par value $0.01 per share. Issued and outstanding: 170,243 shares at September 30, 2019 and 171,582 shares at December 31, 2018 | 1,702 | 1,716 |
Additional paid-in capital | 23,301 | 1,896 |
Retained earnings | 2,301,156 | 2,088,707 |
Accumulated other comprehensive loss | (118,774) | (105,481) |
Total shareholders’ equity | 2,207,385 | 1,986,838 |
Noncontrolling interest | 1,902 | 882 |
Total equity | 2,209,287 | 1,987,720 |
Total liabilities and equity | $ 3,706,453 | $ 3,314,559 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 11,853 | $ 15,345 |
Property and equipment, accumulated depreciation | $ 468,059 | $ 446,977 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 170,243 | 171,582 |
Common stock, shares outstanding | 170,243 | 171,582 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Revenues: | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | $ 2,074,855 | $ 2,090,947 | $ 6,130,485 | $ 5,902,768 |
Operating Expenses: | |||||
Direct Operating Costs | [2] | 1,400,499 | 1,429,633 | 4,140,320 | 3,963,070 |
Salaries and related | 356,331 | 351,577 | 1,069,592 | 1,042,420 | |
Rent and occupancy | 41,987 | 38,202 | 124,407 | 113,186 | |
Depreciation and amortization | 12,386 | 13,335 | 38,456 | 40,833 | |
Selling and promotion | 10,133 | 10,632 | 32,852 | 32,385 | |
Other | 46,969 | 44,414 | 138,506 | 131,318 | |
Total operating expenses | 1,868,305 | 1,887,793 | 5,544,133 | 5,323,212 | |
Operating income | 206,550 | 203,154 | 586,352 | 579,556 | |
Other Income (Expense): | |||||
Interest income | 5,501 | 4,704 | 18,123 | 14,171 | |
Other, net | 1,895 | 566 | 5,822 | 2,357 | |
Other income (expense), net | 7,396 | 5,270 | 23,945 | 16,528 | |
Earnings before income taxes | 213,946 | 208,424 | 610,297 | 596,084 | |
Income tax expense | 53,319 | 45,357 | 156,029 | 155,871 | |
Net earnings | 160,627 | 163,067 | 454,268 | 440,213 | |
Less net earnings attributable to the noncontrolling interest | 406 | 375 | 1,199 | 1,224 | |
Net earnings attributable to shareholders | $ 160,221 | $ 162,692 | $ 453,069 | $ 438,989 | |
Diluted earnings attributable to shareholders per share | $ 0.92 | $ 0.92 | $ 2.60 | $ 2.46 | |
Basic earnings attributable to shareholders per share | $ 0.94 | $ 0.94 | $ 2.65 | $ 2.51 | |
Weighted average diluted shares outstanding | 173,483 | 177,173 | 174,463 | 178,447 | |
Weighted average basic shares outstanding | 170,415 | 173,394 | 171,084 | 174,675 | |
Airfreight services | |||||
Revenues: | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 715,450 | $ 833,338 | $ 2,171,928 | $ 2,366,326 | |
Operating Expenses: | |||||
Direct Operating Costs | 522,868 | 620,554 | 1,574,717 | 1,727,383 | |
Ocean freight and ocean services | |||||
Revenues: | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 585,374 | 585,810 | 1,697,824 | 1,636,701 | |
Operating Expenses: | |||||
Direct Operating Costs | 424,215 | 435,313 | 1,234,845 | 1,199,887 | |
Customs brokerage and other services | |||||
Revenues: | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 774,031 | 671,799 | 2,260,733 | 1,899,741 | |
Operating Expenses: | |||||
Direct Operating Costs | $ 453,416 | $ 373,766 | $ 1,330,758 | $ 1,035,800 | |
[1] | In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation and other expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change operating income. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised. | ||||
[2] | Directly related cost of transportation and other expenses totals operating expenses from airfreight services, ocean freight and ocean services and customs brokerage and other services as shown in the condensed consolidated statements of earnings. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings | $ 160,627 | $ 163,067 | $ 454,268 | $ 440,213 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments, net of tax of $5,803 and $2,904 for the three months ended September 30, 2019 and 2018 and $5,364 and $12,563 for the nine months ended September 30, 2019 and 2018 | (14,603) | (10,929) | (14,007) | (28,129) |
Reclassification adjustments for foreign currency realized losses, net of tax of $145 for the nine months ended September 30, 2019 | 0 | 0 | 535 | 0 |
Other comprehensive loss | (14,603) | (10,929) | (13,472) | (28,129) |
Comprehensive income | 146,024 | 152,138 | 440,796 | 412,084 |
Less comprehensive income (loss) attributable to the noncontrolling interest | 481 | (167) | 1,020 | 230 |
Comprehensive income attributable to shareholders | $ 145,543 | $ 152,305 | $ 439,776 | $ 411,854 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Comprehensive Income Loss Tax Parenthetical Disclosures [Abstract] | ||||
Foreign currency translation adjustments, tax | $ (5,803) | $ (2,904) | $ (5,364) | $ (12,563) |
Reclassification adjustments for foreign currency realized losses, tax | $ 145 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities: | ||||
Net earnings | $ 160,627 | $ 163,067 | $ 454,268 | $ 440,213 |
Adjustments to reconcile net earnings to net cash from operating activities: | ||||
Provisions for losses on accounts receivable | 757 | 1,969 | 453 | 2,232 |
Deferred income tax benefit | (5,822) | (23,610) | (17) | (17,522) |
Stock compensation expense | 12,155 | 13,902 | 49,361 | 43,171 |
Depreciation and amortization | 12,386 | 13,335 | 38,456 | 40,833 |
Other, net | 652 | 666 | 812 | 770 |
Changes in operating assets and liabilities: | ||||
Decrease (increase) in accounts receivable | 43,885 | (210,092) | 246,175 | (156,321) |
(Decrease) increase in accounts payable and accrued expenses | (58,816) | 115,629 | (141,199) | 127,860 |
Decrease (increase) in deferred contract costs | 10,301 | (34,623) | 28,550 | (51,235) |
(Decrease) increase in contract liabilities | (13,211) | 36,256 | (36,933) | 49,149 |
(Decrease) increase in income taxes payable, net | (671) | 9,292 | (33,284) | (9,258) |
(Decrease) increase in other, net | (744) | 930 | 47 | 862 |
Net cash from operating activities | 161,499 | 86,721 | 606,689 | 470,754 |
Investing Activities: | ||||
Purchase of property and equipment | (15,521) | (11,733) | (37,943) | (37,642) |
Other, net | 232 | 1,109 | 1,525 | (886) |
Net cash from investing activities | (15,289) | (10,624) | (36,418) | (38,528) |
Financing Activities: | ||||
Proceeds from issuance of common stock | 60,713 | 47,806 | 120,190 | 169,566 |
Repurchases of common stock | (61,999) | (147,828) | (296,922) | (555,760) |
Dividends Paid | (85,184) | (79,180) | ||
Payments for taxes related to net share settlement of equity awards | (6,674) | (3,215) | ||
Distributions to noncontrolling interest | (633) | (633) | ||
Purchase of noncontrolling interest | (613) | (613) | ||
Net cash from financing activities | (1,286) | (101,268) | (268,590) | (469,835) |
Effect of exchange rate changes on cash and cash equivalents | (11,604) | (5,071) | (9,446) | (22,878) |
Change in cash and cash equivalents | 133,320 | (30,242) | 292,235 | (60,487) |
Cash and cash equivalents at beginning of period | 1,082,650 | 1,020,854 | 923,735 | 1,051,099 |
Cash and cash equivalents at end of period | 1,215,970 | 990,612 | 1,215,970 | 990,612 |
Taxes Paid: | ||||
Income taxes | $ 61,201 | $ 59,313 | $ 196,169 | $ 183,444 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Total shareholders' equity | Noncontrolling interest |
Balance at Dec. 31, 2017 | $ 1,994,373 | $ 1,764 | $ 546 | $ 2,063,512 | $ (73,964) | $ 1,991,858 | $ 2,515 |
Balance (in shares) at Dec. 31, 2017 | 176,374 | ||||||
Increase (Decrease) in Equity [Roll Forward] | |||||||
Exercise of stock options and release of restricted shares | 133,060 | $ 33 | 133,027 | 133,060 | |||
Exercise of stock options and release of restricted shares (in shares) | 3,288 | ||||||
Issuance of shares under stock purchase plan | 33,292 | $ 7 | 33,285 | 33,292 | |||
Issuance of shares under stock purchase plan (in shares) | 666 | ||||||
Shares repurchased under provisions of stock repurchase plan | (555,760) | $ (78) | (208,266) | (347,416) | (555,760) | ||
Shares repurchased under provisions of stock repurchase plans (in shares) | (7,764) | ||||||
Stock compensation expense | 43,171 | 43,171 | 43,171 | ||||
Net earnings | 440,213 | 438,989 | 438,989 | 1,224 | |||
Other comprehensive income (loss) | (28,129) | (27,134) | (27,134) | (995) | |||
Dividends paid | (79,180) | 159 | (79,339) | (79,180) | |||
Purchase of noncontrolling interest | (613) | (90) | (90) | (523) | |||
Distributions to noncontrolling interest | (633) | (633) | |||||
Balance at Sep. 30, 2018 | 1,957,332 | $ 1,726 | 1,832 | 2,053,389 | (101,098) | 1,955,849 | 1,483 |
Balance (in shares) at Sep. 30, 2018 | 172,564 | ||||||
Balance at Jun. 30, 2018 | 1,892,559 | $ 1,736 | 1,607 | 1,977,121 | (90,712) | 1,889,752 | 2,807 |
Balance (in shares) at Jun. 30, 2018 | 173,577 | ||||||
Increase (Decrease) in Equity [Roll Forward] | |||||||
Exercise of stock options and release of restricted shares | 14,515 | $ 3 | 14,512 | 14,515 | |||
Exercise of stock options and release of restricted shares (in shares) | 332 | ||||||
Issuance of shares under stock purchase plan | 33,292 | $ 7 | 33,285 | 33,292 | |||
Issuance of shares under stock purchase plan (in shares) | 666 | ||||||
Shares repurchased under provisions of stock repurchase plan | (147,828) | $ (20) | (61,384) | (86,424) | (147,828) | ||
Shares repurchased under provisions of stock repurchase plans (in shares) | (2,011) | ||||||
Stock compensation expense | 13,902 | 13,902 | 13,902 | ||||
Net earnings | 163,067 | 162,692 | 162,692 | 375 | |||
Other comprehensive income (loss) | (10,929) | (10,386) | (10,386) | (543) | |||
Purchase of noncontrolling interest | (613) | (90) | (90) | (523) | |||
Distributions to noncontrolling interest | (633) | (633) | |||||
Balance at Sep. 30, 2018 | 1,957,332 | $ 1,726 | 1,832 | 2,053,389 | (101,098) | 1,955,849 | 1,483 |
Balance (in shares) at Sep. 30, 2018 | 172,564 | ||||||
Increase (Decrease) in Equity [Roll Forward] | |||||||
Cumulative effect of accounting change | (22,462) | (22,357) | (22,357) | (105) | |||
Balance at Dec. 31, 2018 | $ 1,987,720 | $ 1,716 | 1,896 | 2,088,707 | (105,481) | 1,986,838 | 882 |
Balance (in shares) at Dec. 31, 2018 | 171,582 | 171,582 | |||||
Increase (Decrease) in Equity [Roll Forward] | |||||||
Exercise of stock options and release of restricted shares | $ 75,641 | $ 22 | 75,619 | 75,641 | |||
Exercise of stock options and release of restricted shares (in shares) | 2,166 | ||||||
Issuance of shares under stock purchase plan | 37,875 | $ 6 | 37,869 | 37,875 | |||
Issuance of shares under stock purchase plan (in shares) | 585 | ||||||
Shares repurchased under provisions of stock repurchase plan | (296,922) | $ (42) | (141,847) | (155,033) | (296,922) | ||
Shares repurchased under provisions of stock repurchase plans (in shares) | (4,090) | ||||||
Stock compensation expense | 49,361 | 49,361 | 49,361 | ||||
Net earnings | 454,268 | 453,069 | 453,069 | 1,199 | |||
Other comprehensive income (loss) | (13,472) | (13,293) | (13,293) | (179) | |||
Dividends paid | (85,184) | 403 | (85,587) | (85,184) | |||
Balance at Sep. 30, 2019 | $ 2,209,287 | $ 1,702 | 23,301 | 2,301,156 | (118,774) | 2,207,385 | 1,902 |
Balance (in shares) at Sep. 30, 2019 | 170,243 | 170,243 | |||||
Balance at Jun. 30, 2019 | $ 2,052,394 | $ 1,701 | 12,433 | 2,140,935 | (104,096) | 2,050,973 | 1,421 |
Balance (in shares) at Jun. 30, 2019 | 170,040 | ||||||
Increase (Decrease) in Equity [Roll Forward] | |||||||
Exercise of stock options and release of restricted shares | 22,838 | $ 5 | 22,833 | 22,838 | |||
Exercise of stock options and release of restricted shares (in shares) | 510 | ||||||
Issuance of shares under stock purchase plan | 37,875 | $ 6 | 37,869 | 37,875 | |||
Issuance of shares under stock purchase plan (in shares) | 585 | ||||||
Shares repurchased under provisions of stock repurchase plan | (61,999) | $ (10) | (61,989) | (61,999) | |||
Shares repurchased under provisions of stock repurchase plans (in shares) | (892) | ||||||
Stock compensation expense | 12,155 | 12,155 | 12,155 | ||||
Net earnings | 160,627 | 160,221 | 160,221 | 406 | |||
Other comprehensive income (loss) | (14,603) | (14,678) | (14,678) | 75 | |||
Balance at Sep. 30, 2019 | $ 2,209,287 | $ 1,702 | $ 23,301 | $ 2,301,156 | $ (118,774) | $ 2,207,385 | $ 1,902 |
Balance (in shares) at Sep. 30, 2019 | 170,243 | 170,243 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||
Dividends paid, per share | $ 0.50 | $ 0.45 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies A. Basis of Presentation Expeditors International of Washington, Inc. (the Company) is a non-asset based provider of global logistics services operating through a worldwide network of offices and exclusive or non-exclusive agents. The Company’s customers include retailing and wholesaling, electronics, industrial and manufacturing companies around the world. The condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. As a result, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) have been condensed or omitted. The Company believes that the disclosures made are adequate to make the information presented not misleading. The condensed consolidated financial statements reflect all adjustments, consisting of normal recurring items, which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Form 10-K as filed with the Securities and Exchange Commission on February 22, 2019. All significant intercompany accounts and transactions have been eliminated in consolidation. All dollar amounts in the notes are presented in thousands except for per share data or unless otherwise specified. B. Revenue Recognition The Company derives its revenues by entering into agreements that are generally comprised of a single performance obligation, which is that freight is shipped for and received by the customer. The Company's three principal services are the revenue categories presented in the consolidated statements of earnings: 1) airfreight services, 2) ocean freight and ocean services, and 3) customs brokerage and other services. The Company typically satisfies its performance obligations as services are rendered over time. A typical shipment would include services rendered at origin, such as pick-up and delivery to port, freight services from origin to destination port and destination services, such as customs clearance and final delivery. The Company measures the performance of its obligations as services are completed over the life of a shipment, including services at origin, freight and destination. The Company fulfills nearly all of its performance obligations within a one to two month-period and contracts with customers have an original expected duration of less than one year. The Company satisfied nearly all performance obligations for the contract liabilities recorded as of June 30, 2019. In 2019, the Company revised its presentation for revenue transfers between its geographic operating segments and services rendered at the destination, which moved certain revenues and directly related operating expenses for air and ocean transactions to destination services within customs brokerage and other services. These changes better align revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased revenues and directly related operating expenses in customs brokerage and other services but did not change operating income. The impact on reported consolidated and segment total revenues and expenses for these changes was immaterial and the prior year presentation has not been revised. C. Leases Effective January 1, 2019, the Company adopted new lease accounting guidance using a modified retrospective approach and recognizing a right-of-use (ROU) asset and lease liability on the balance sheet. On January 1, 2019, ROU assets and lease liabilities were recorded for all existing leases exceeding one-year terms and were measured at the present value of lease payments over the remaining lease term. The adoption of this accounting standard resulted in recording ROU assets and lease liabilities for operating leases of $343 million and $340 million, respectively, as of January 1, 2019. The adoption of this standard had no impact on retained earnings on the condensed consolidated balance sheet. In recording the ROU asset and lease liability, the Company elected to apply the following practical expedients: • Package of practical expedients not to reassess: ◦ Whether a contract is or contains a lease, ◦ Historical lease classification, and ◦ Initial direct costs. • Use of hindsight when determining the lease term. Additionally, the Company has elected to apply the short-term lease exemption for leases with a non-cancelable period of twelve months or less and has chosen not to separate nonlease components from lease components and instead to account for each as a single lease component. The Company determines if an arrangement is a lease at inception. ROU assets represent the Company's right to use an underlying asset for the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease. All ROU assets and lease liabilities are recognized at the commencement date at the present value of lease payments over the lease term. ROU assets are adjusted for lease incentives and initial direct costs. The lease term includes renewal options exercisable at the Company's sole discretion when the Company is reasonably certain to exercise that option. As the Company's leases generally do not have an implicit rate, the Company uses an estimated incremental borrowing rate based on market information available at the commencement date to determine the present value. Certain of our leases include variable payments, which may vary based upon changes in facts or circumstances after the start of the lease. The Company excludes variable payments from lease ROU assets and lease liabilities, to the extent not considered fixed, and instead expense variable payments as incurred. Lease expense is recognized on a straight-line basis over the lease term and is included in rent and occupancy expenses on the condensed consolidated statement of earnings. D. Accounts Receivable The Company maintains an allowance for doubtful accounts, which is reviewed at least monthly for estimated losses resulting from the inability of its customers to make required payments for services and advances. Additional allowances may be necessary in the future if the ability of customers to pay deteriorates. The Company has recorded an allowance for doubtful accounts in the amounts of $11,853 Additions and write-offs have not been significant in the periods presented. E. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. The Company uses estimates primarily in the following areas: accounts receivable valuation, accrual of costs related to ancillary services the Company provides, accrual of liabilities for the portion of the related exposure that the Company has self-insured, accrual of various tax liabilities including estimates associated with the U.S. enacted Tax Cuts and Jobs Act (the 2017 Tax Act), accrual of loss contingencies, calculation of share-based compensation expense and estimates related to determining the lease term and discount rate when measuring ROU assets and lease liabilities. Actual results could be materially different from the estimated provisions and accruals recorded. F. Recent Accounting Pronouncement In June 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), which amends existing guidance for the accounting of credit losses on financial instruments. Under the ASU, the Company will record a valuation allowance for credit losses that are expected to be incurred over the financial asset’s contractual term. This standard will be effective for the Company on January 1, 2020 and is not expected to have a material effect on the consolidated financial statements as the new credit loss model will primarily apply to the Company's accounts receivable, which are of short duration and for which the Company has not historically experienced significant credit losses. However, the Company is still evaluating the impact of the new prescribed model compared to its current methodology. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Lessee Disclosure [Abstract] | |
Lessee, Operating Leases | Note 2. Leases The Company enters into lease agreements primarily for office and warehouse space in all districts where it conducts business. As of September 30, 2019, all of the Company's leases are operating leases. Lease cost for the three and nine months ended September 30, 2019 are all recorded under rent and occupancy expenses on the condensed consolidated statement of earnings and are comprised of the following: Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating lease cost $ 20,784 $ 60,832 Variable lease cost 6,990 19,867 Total lease cost $ 27,774 $ 80,699 Variable lease cost includes short-term lease expenses, which are insignificant. Maturities of lease liabilities as of September 30, 2019 are as follows: 2019 $ 19,112 2020 77,416 2021 67,505 2022 61,044 2023 52,427 Thereafter 174,492 Total minimum lease payments 451,996 Less imputed interest 76,574 Lease liability $ 375,422 At December 31, 2018, the last balance sheet presented before the adoption of the new accounting standard Topic 842 Leases 2019 $ 75,227 2020 62,974 2021 47,552 2022 38,352 2023 26,580 Thereafter 67,140 $ 317,825 The weighted-average remaining lease term and weighted-average discount rate as of September 30, 2019 are as follows: Weighted-average remaining lease term (in years) 7.47 Weighted-average discount rate 4.94 % Other information related to the Company's operating leases are as follows: Three months ended September 30, 2019 Nine months ended September 30, 2019 Right-of-use assets obtained in exchange for new operating lease liabilities $ 14,630 $ 76,664 Cash paid for amounts included in the measurement of lease liabilities $ 19,642 $ 58,934 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share Based Compensation [Abstract] | |
Share-Based Compensation | Note 3. Share-Based Compensation The Company has historically granted the majority of its share-based awards during the second quarter of each fiscal year. During the nine months ended September 30, 2019 and 2018, the Company awarded 462 $75.73 3 years The Company also awarded 96 RSUs and PSUs granted under the 2017 Plan have dividend equivalent rights, which entitle holders of the awards to the same dividend value per share as holders of common stock. Dividend equivalent rights are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs and PSUs and are accumulated and paid in shares when the underlying awards The grant of employee stock purchase rights and the issuance of shares under the employee stock purchase plan are made in the third quarter of each fiscal year and 585 and 666 shares were issued in the three and nine months ended September 30, 2019 and 2018, respectively. The fair value of the employee stock purchase rights granted was $17.03 and $17.49 per share in 2019 and 2018, respectively. The Company recognizes stock compensation expense based on the fair value of awards granted to employees and directors under the Company’s omnibus incentive, stock option, director restricted stock and employee stock purchase rights plans. This expense, adjusted for expected forfeitures, is recognized in net earnings on a straight-line basis over the service periods as salaries and related costs on the condensed consolidated statements of earnings. RSUs and PSUs awarded to certain employees meeting specific retirement eligibility criteria at the time of grant are expensed immediately as there is no substantive service period associated with those awards. For RSU awards meeting retirement eligibility criteria, approximately $5,000 of stock compensation expense was recognized during the nine months ended September 30, 2019, and approximately $4,000 of stock compensation expense was recognized during 2018. For PSU awards meeting retirement eligibility criteria, approximately $5,000 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 4. Income Taxes In December 2017, the 2017 Tax Act was enacted in the United States. Beginning January 1, 2018, foreign earnings of the Company's international subsidiaries are generally exempt from U.S. Federal income tax upon repatriation. Notwithstanding these changes, certain withholding taxes and foreign exchange gains and losses will continue to be applicable upon the repatriation of foreign earnings. During 2018 and 2019, the Internal Revenue Service (IRS) and the U.S. Department of Treasury (Treasury) issued additional guidelines and clarifying regulations related to the implementation of the 2017 Tax Act. The Company expects that additional guidance will continue to be issued in future periods. As this guidance is issued, the Company will continue to evaluate the information to determine whether any additional adjustments to its tax provisions are required. The 2017 Tax Act included provisions for Global Intangible Low-Taxed Income (GILTI) under which taxes on foreign income are imposed on the excess of a deemed return on tangible assets of certain foreign subsidiaries and for Base Erosion and Anti-Abuse Tax (BEAT) under which taxes are imposed on certain base eroding payments to affiliated foreign companies. The Company treats BEAT and GILTI as components of current income tax expense. Income tax expense for the three and nine months ended September 30, 2019 and 2018 had no significant tax expense related BEAT or GILTI. In February 2018, the FASB issued amended guidance for reporting comprehensive income to reflect changes resulting from the 2017 Tax Act. The amendment, which had an effective date of January 1, 2019, provided the option to reclassify stranded tax effects resulting from the 2017 Tax Act within accumulated other comprehensive income (AOCI) to retained earnings. The Company elected to not reclassify stranded income tax effects from AOCI to retained earnings, including those related to implementation of the 2017 Tax Act. Our consolidated effective income tax rate was 24.9% and 25.6% for the three and nine months ended September 30, 2019, respectively, as compared to 21.8% and 26.1% for the comparable periods in 2018. The effect of higher average tax rates of our international subsidiaries, when compared to U.S. federal and state tax rates, were partially offset by U.S. foreign tax credits and U.S. income tax deductions for Foreign-derived intangible income (FDII). In addition, the three month period ended 2018 benefited from required discrete adjustments as a result of interpretations issued related to the 2017 Tax Act for foreign tax credits earned as a result of withholding taxes paid on repatriated foreign earnings totaling $7 million and a state income tax refund totaling $4 million that settled during the quarter in 2018. As discussed above, some elements of the recorded impacts of the 2017 Tax Act could be impacted by further legislative action as well as additional interpretations and guidance issued by the IRS or Treasury. As a result, the amount of income tax recorded in the future may differ, possibly materially. For further information and discussion of the potential impact of the 2017 Tax Act, refer to Note 5 to the consolidated financial statements in the Company's 2018 Annual Report on Form 10-K. |
Basic and Diluted Earnings per
Basic and Diluted Earnings per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings per Share | Note 5. Basic and Diluted Earnings per Share Diluted earnings attributable to shareholders per share is computed using the weighted average number of common shares and dilutive potential common shares outstanding. Dilutive potential shares represent outstanding stock options, including purchase options under the Company's employee stock purchase plan, and unvested restricted stock units. Basic earnings attributable to shareholders per share is calculated using the weighted average number of common shares outstanding without taking into consideration dilutive potential common shares outstanding. The following table reconciles the numerator and the denominator of the basic and diluted per share computations for earnings attributable to shareholders: Three months ended September 30, Net earnings attributable to shareholders Weighted average shares Earnings per share 2019 Basic earnings attributable to shareholders $ 160,221 170,415 $ 0.94 Effect of dilutive potential common shares — 3,068 — Diluted earnings attributable to shareholders $ 160,221 173,483 $ 0.92 2018 Basic earnings attributable to shareholders $ 162,692 173,394 $ 0.94 Effect of dilutive potential common shares — 3,779 — Diluted earnings attributable to shareholders $ 162,692 177,173 $ 0.92 Nine months ended September 30, Net earnings attributable to shareholders Weighted average shares Earnings per share 2019 Basic earnings attributable to shareholders $ 453,069 171,084 $ 2.65 Effect of dilutive potential common shares — 3,379 — Diluted earnings attributable to shareholders $ 453,069 174,463 $ 2.60 2018 Basic earnings attributable to shareholders $ 438,989 174,675 $ 2.51 Effect of dilutive potential common shares — 3,772 — Diluted earnings attributable to shareholders $ 438,989 178,447 $ 2.46 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | Note 6. Shareholders' Equity The Company has a Discretionary Stock Repurchase Plan approved by the Board of Directors that authorizes management to reduce issued and outstanding common stock down to 160,000 shares. During the nine months ended September 30, 2019, 4,002 shares were repurchased at an average price of $72.57 The Company also had a Non-Discretionary Stock Repurchase Plan to repurchase shares from the proceeds of stock option exercises and employee stock purchases. As of March 31, 2019, all shares authorized under this plan have been repurchased. During the nine months ended September 30, 2019, 88 shares were repurchased at an average price of $74.03, compared to 2,386 at an average price of $72.72 per share during the same period in 2018. Accumulated other comprehensive loss consisted entirely of foreign currency translation adjustments, net of related income tax effects, for all the periods presented. On May 7, 2019, the Board of Directors declared a semi-annual dividend of $0.50 per share payable on June 17, 2019 to shareholders of record as of June 3, 2019. On May 8, 2018, the Board of Directors declared a semi-annual dividend of $0.45 per share paid on June 15, 2018 to shareholders of record as of June 1, 2018. Subsequent to the end of third quarter 2019, on November 4, 2019, the Board of Directors declared a semi-annual dividend of $0.50 per share payable on December 16, 2019 to shareholders of record as of December 2, 2019. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 7. Fair Value of Financial Instruments The Company’s financial instruments, other than cash, consist primarily of cash equivalents, accounts receivable, accounts payable and accrued expenses. The carrying value of these financial instruments approximates their fair value. All highly liquid investments with a maturity of three months or less at date of purchase are considered to be cash equivalents. Cash and cash equivalents consist of the following: September 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Cash and Cash Equivalents: Cash and overnight deposits $ 398,235 $ 398,235 $ 427,307 $ 427,307 Corporate commercial paper 788,060 788,708 467,300 467,760 Time deposits 29,675 29,675 29,128 29,128 Total cash and cash equivalents $ 1,215,970 $ 1,216,618 $ 923,735 $ 924,195 The fair value of corporate commercial paper and time deposits is based on the use of market interest rates for identical or similar assets (Level 2 fair value measurement). |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Loss Contingency [Abstract] | |
Contingencies | Note 8. Contingencies The Company is involved in claims, lawsuits, government investigations and other legal matters that arise in the ordinary course of business and are subject to inherent uncertainties. Currently, in management's opinion and based upon advice from legal advisors, none of these matters are expected to have a significant effect on the Company's operations, cash flows or financial position. As of September 30, 2019, the amounts accrued for these claims, lawsuits, government investigations and other legal matters are not significant to the Company's operations, cash flows or financial position. At this time, the Company is unable to estimate any additional loss or range of reasonably possible losses, if any, beyond the amounts recorded, that might result from the resolution of these matters. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 9. Business Segment Information The Company is organized functionally in geographic operating segments. Accordingly, management focuses its attention on revenues, directly related cost of transportation and other expenses for each of the Company’s three primary sources of revenue, salaries and other operating expenses, operating income, identifiable assets, capital expenditures and equity generated in each of these geographical areas when evaluating the effectiveness of geographic management. Transactions among the Company’s various offices are conducted using the same arms-length pricing methodologies the Company uses when its offices transact business with independent agents. Certain costs are allocated among the segments based on the relative value of the underlying services, which can include allocation based on actual costs incurred or estimated cost plus a profit margin. Financial information regarding the Company’s operations by geographic area is as follows: UNITED STATES OTHER NORTH AMERICA LATIN AMERICA NORTH ASIA SOUTH ASIA EUROPE MIDDLE EAST, AFRICA AND INDIA ELIMI- NATIONS CONSOLI- DATED For the three months ended September 30, 2019: Revenues 1 $ 692,229 88,088 38,341 624,351 196,569 320,769 115,397 (889 ) 2,074,855 Directly related cost of transportation and other expenses 2 $ 389,254 51,420 22,990 489,195 145,345 221,149 81,592 (446 ) 1,400,499 Salaries and other operating expenses 3 $ 210,767 25,731 14,547 70,410 32,482 86,156 28,151 (438 ) 467,806 Operating income $ 92,208 10,937 804 64,746 18,742 13,464 5,654 (5 ) 206,550 Identifiable assets at period end $ 2,059,345 128,336 72,029 489,322 164,976 563,289 226,657 2,499 3,706,453 Capital expenditures $ 7,644 513 833 523 631 5,119 258 — 15,521 Equity $ 1,578,682 60,526 27,217 216,061 77,733 169,450 111,355 (31,737 ) 2,209,287 For the three months ended September 30, 2018: Revenues 1 $ 629,043 92,875 43,443 748,589 205,392 327,212 118,047 (73,654 ) 2,090,947 Directly related cost of transportation and other expenses 2 $ 345,236 58,464 27,635 601,699 158,226 227,418 83,992 (73,037 ) 1,429,633 Salaries and other operating expenses 3 $ 204,240 23,935 13,399 74,067 31,623 84,136 27,384 (624 ) 458,160 Operating income $ 79,567 10,476 2,409 72,823 15,543 15,658 6,671 7 203,154 Identifiable assets at period end $ 1,694,556 174,402 53,322 540,465 156,887 508,855 212,817 (6,504 ) 3,334,800 Capital expenditures $ 6,889 301 227 1,280 910 751 1,375 — 11,733 Equity $ 1,334,952 66,399 25,663 197,939 86,048 157,973 119,718 (31,360 ) 1,957,332 UNITED STATES OTHER NORTH AMERICA LATIN AMERICA NORTH ASIA SOUTH ASIA EUROPE MIDDLE EAST, AFRICA AND INDIA ELIMI- NATIONS CONSOLI- DATED For the nine months ended September 30, 2019: Revenues 1 $ 2,033,088 265,035 111,277 1,879,155 555,128 952,790 336,383 (2,371 ) 6,130,485 Directly related cost of transportation and other expenses 2 $ 1,142,701 157,997 64,149 1,475,395 407,642 657,720 236,184 (1,468 ) 4,140,320 Salaries and other operating expenses 3 $ 636,243 76,283 41,342 208,781 97,324 258,339 86,385 (884 ) 1,403,813 Operating income $ 254,144 30,755 5,786 194,979 50,162 36,731 13,814 (19 ) 586,352 Identifiable assets at period end $ 2,059,345 128,336 72,029 489,322 164,976 563,289 226,657 2,499 3,706,453 Capital expenditures $ 23,544 1,509 1,071 1,167 1,235 8,015 1,402 — 37,943 Equity $ 1,578,682 60,526 27,217 216,061 77,733 169,450 111,355 (31,737 ) 2,209,287 For the nine months ended September 30, 2018: Revenues 1 $ 1,790,869 257,206 122,170 2,065,405 560,070 977,967 342,589 (213,508 ) 5,902,768 Directly related cost of transportation and other expenses 2 $ 957,997 157,599 75,694 1,640,724 423,612 677,167 242,208 (211,931 ) 3,963,070 Salaries and other operating expenses 3 $ 620,029 70,036 38,996 211,576 92,409 248,906 79,782 (1,592 ) 1,360,142 Operating income $ 212,843 29,571 7,480 213,105 44,049 51,894 20,599 15 579,556 Identifiable assets at period end $ 1,694,556 174,402 53,322 540,465 156,887 508,855 212,817 (6,504 ) 3,334,800 Capital expenditures $ 16,092 4,020 899 2,623 1,934 9,167 2,907 — 37,642 Equity $ 1,334,952 66,399 25,663 197,939 86,048 157,973 119,718 (31,360 ) 1,957,332 1 In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation and other expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change operating income. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised. 2 Directly related cost of transportation and other expenses totals operating expenses from airfreight services, ocean freight and ocean services and customs brokerage and other services as shown in the condensed consolidated statements of earnings. 3 Salaries and other operating expenses totals salaries and related, rent and occupancy, depreciation and amortization, selling and promotion and other as shown in the condensed consolidated statements of earnings. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Policy | The condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. As a result, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) have been condensed or omitted. The Company believes that the disclosures made are adequate to make the information presented not misleading. The condensed consolidated financial statements reflect all adjustments, consisting of normal recurring items, which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Form 10-K as filed with the Securities and Exchange Commission on February 22, 2019. All significant intercompany accounts and transactions have been eliminated in consolidation. All dollar amounts in the notes are presented in thousands except for per share data or unless otherwise specified. |
Revenue Recognition, Policy | The Company derives its revenues by entering into agreements that are generally comprised of a single performance obligation, which is that freight is shipped for and received by the customer. The Company's three principal services are the revenue categories presented in the consolidated statements of earnings: 1) airfreight services, 2) ocean freight and ocean services, and 3) customs brokerage and other services. The Company typically satisfies its performance obligations as services are rendered over time. A typical shipment would include services rendered at origin, such as pick-up and delivery to port, freight services from origin to destination port and destination services, such as customs clearance and final delivery. The Company measures the performance of its obligations as services are completed over the life of a shipment, including services at origin, freight and destination. The Company fulfills nearly all of its performance obligations within a one to two month-period and contracts with customers have an original expected duration of less than one year. The Company satisfied nearly all performance obligations for the contract liabilities recorded as of June 30, 2019. In 2019, the Company revised its presentation for revenue transfers between its geographic operating segments and services rendered at the destination, which moved certain revenues and directly related operating expenses for air and ocean transactions to destination services within customs brokerage and other services. These changes better align revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased revenues and directly related operating expenses in customs brokerage and other services but did not change operating income. The impact on reported consolidated and segment total revenues and expenses for these changes was immaterial and the prior year presentation has not been revised. |
Leases, Policy | Effective January 1, 2019, the Company adopted new lease accounting guidance using a modified retrospective approach and recognizing a right-of-use (ROU) asset and lease liability on the balance sheet. On January 1, 2019, ROU assets and lease liabilities were recorded for all existing leases exceeding one-year terms and were measured at the present value of lease payments over the remaining lease term. The adoption of this accounting standard resulted in recording ROU assets and lease liabilities for operating leases of $343 million and $340 million, respectively, as of January 1, 2019. The adoption of this standard had no impact on retained earnings on the condensed consolidated balance sheet. In recording the ROU asset and lease liability, the Company elected to apply the following practical expedients: • Package of practical expedients not to reassess: ◦ Whether a contract is or contains a lease, ◦ Historical lease classification, and ◦ Initial direct costs. • Use of hindsight when determining the lease term. Additionally, the Company has elected to apply the short-term lease exemption for leases with a non-cancelable period of twelve months or less and has chosen not to separate nonlease components from lease components and instead to account for each as a single lease component. The Company determines if an arrangement is a lease at inception. ROU assets represent the Company's right to use an underlying asset for the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease. All ROU assets and lease liabilities are recognized at the commencement date at the present value of lease payments over the lease term. ROU assets are adjusted for lease incentives and initial direct costs. The lease term includes renewal options exercisable at the Company's sole discretion when the Company is reasonably certain to exercise that option. As the Company's leases generally do not have an implicit rate, the Company uses an estimated incremental borrowing rate based on market information available at the commencement date to determine the present value. Certain of our leases include variable payments, which may vary based upon changes in facts or circumstances after the start of the lease. The Company excludes variable payments from lease ROU assets and lease liabilities, to the extent not considered fixed, and instead expense variable payments as incurred. Lease expense is recognized on a straight-line basis over the lease term and is included in rent and occupancy expenses on the condensed consolidated statement of earnings. |
Accounts Receivable, Policy | The Company maintains an allowance for doubtful accounts, which is reviewed at least monthly for estimated losses resulting from the inability of its customers to make required payments for services and advances. Additional allowances may be necessary in the future if the ability of customers to pay deteriorates. The Company has recorded an allowance for doubtful accounts in the amounts of $11,853 Additions and write-offs have not been significant in the periods presented. |
Use of Estimates, Policy | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. The Company uses estimates primarily in the following areas: accounts receivable valuation, accrual of costs related to ancillary services the Company provides, accrual of liabilities for the portion of the related exposure that the Company has self-insured, accrual of various tax liabilities including estimates associated with the U.S. enacted Tax Cuts and Jobs Act (the 2017 Tax Act), accrual of loss contingencies, calculation of share-based compensation expense and estimates related to determining the lease term and discount rate when measuring ROU assets and lease liabilities. Actual results could be materially different from the estimated provisions and accruals recorded. |
New Accounting Pronouncements, Policy | In June 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), which amends existing guidance for the accounting of credit losses on financial instruments. Under the ASU, the Company will record a valuation allowance for credit losses that are expected to be incurred over the financial asset’s contractual term. This standard will be effective for the Company on January 1, 2020 and is not expected to have a material effect on the consolidated financial statements as the new credit loss model will primarily apply to the Company's accounts receivable, which are of short duration and for which the Company has not historically experienced significant credit losses. However, the Company is still evaluating the impact of the new prescribed model compared to its current methodology. |
Stock Plans, Policy | The Company recognizes stock compensation expense based on the fair value of awards granted to employees and directors under the Company’s omnibus incentive, stock option, director restricted stock and employee stock purchase rights plans. This expense, adjusted for expected forfeitures, is recognized in net earnings on a straight-line basis over the service periods as salaries and related costs on the condensed consolidated statements of earnings. RSUs and PSUs awarded to certain employees meeting specific retirement eligibility criteria at the time of grant are expensed immediately as there is no substantive service period associated with those awards. For RSU awards meeting retirement eligibility criteria, approximately $5,000 of stock compensation expense was recognized during the nine months ended September 30, 2019, and approximately $4,000 of stock compensation expense was recognized during 2018. For PSU awards meeting retirement eligibility criteria, approximately $5,000 |
Income Tax, Policy | In December 2017, the 2017 Tax Act was enacted in the United States. Beginning January 1, 2018, foreign earnings of the Company's international subsidiaries are generally exempt from U.S. Federal income tax upon repatriation. Notwithstanding these changes, certain withholding taxes and foreign exchange gains and losses will continue to be applicable upon the repatriation of foreign earnings. During 2018 and 2019, the Internal Revenue Service (IRS) and the U.S. Department of Treasury (Treasury) issued additional guidelines and clarifying regulations related to the implementation of the 2017 Tax Act. The Company expects that additional guidance will continue to be issued in future periods. As this guidance is issued, the Company will continue to evaluate the information to determine whether any additional adjustments to its tax provisions are required. The 2017 Tax Act included provisions for Global Intangible Low-Taxed Income (GILTI) under which taxes on foreign income are imposed on the excess of a deemed return on tangible assets of certain foreign subsidiaries and for Base Erosion and Anti-Abuse Tax (BEAT) under which taxes are imposed on certain base eroding payments to affiliated foreign companies. The Company treats BEAT and GILTI as components of current income tax expense. Income tax expense for the three and nine months ended September 30, 2019 and 2018 had no significant tax expense related BEAT or GILTI. In February 2018, the FASB issued amended guidance for reporting comprehensive income to reflect changes resulting from the 2017 Tax Act. The amendment, which had an effective date of January 1, 2019, provided the option to reclassify stranded tax effects resulting from the 2017 Tax Act within accumulated other comprehensive income (AOCI) to retained earnings. The Company elected to not reclassify stranded income tax effects from AOCI to retained earnings, including those related to implementation of the 2017 Tax Act. |
Earnings Per Share, Policy | Diluted earnings attributable to shareholders per share is computed using the weighted average number of common shares and dilutive potential common shares outstanding. Dilutive potential shares represent outstanding stock options, including purchase options under the Company's employee stock purchase plan, and unvested restricted stock units. Basic earnings attributable to shareholders per share is calculated using the weighted average number of common shares outstanding without taking into consideration dilutive potential common shares outstanding. |
Cash Equivalents, Policy | The Company’s financial instruments, other than cash, consist primarily of cash equivalents, accounts receivable, accounts payable and accrued expenses. The carrying value of these financial instruments approximates their fair value. All highly liquid investments with a maturity of three months or less at date of purchase are considered to be cash equivalents. |
Segment Reporting, Policy | The Company is organized functionally in geographic operating segments. Accordingly, management focuses its attention on revenues, directly related cost of transportation and other expenses for each of the Company’s three primary sources of revenue, salaries and other operating expenses, operating income, identifiable assets, capital expenditures and equity generated in each of these geographical areas when evaluating the effectiveness of geographic management. Transactions among the Company’s various offices are conducted using the same arms-length pricing methodologies the Company uses when its offices transact business with independent agents. Certain costs are allocated among the segments based on the relative value of the underlying services, which can include allocation based on actual costs incurred or estimated cost plus a profit margin. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Lessee Disclosure [Abstract] | |
Lease, Cost | Lease cost for the three and nine months ended September 30, 2019 are all recorded under rent and occupancy expenses on the condensed consolidated statement of earnings and are comprised of the following: Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating lease cost $ 20,784 $ 60,832 Variable lease cost 6,990 19,867 Total lease cost $ 27,774 $ 80,699 |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of September 30, 2019 are as follows: 2019 $ 19,112 2020 77,416 2021 67,505 2022 61,044 2023 52,427 Thereafter 174,492 Total minimum lease payments 451,996 Less imputed interest 76,574 Lease liability $ 375,422 |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2018, the last balance sheet presented before the adoption of the new accounting standard Topic 842 Leases 2019 $ 75,227 2020 62,974 2021 47,552 2022 38,352 2023 26,580 Thereafter 67,140 $ 317,825 |
Schedule of Weighted-average Remaining Lease Term and Weighted-average Discount Rate | The weighted-average remaining lease term and weighted-average discount rate as of September 30, 2019 are as follows: Weighted-average remaining lease term (in years) 7.47 Weighted-average discount rate 4.94 % |
Other information related to leases | Other information related to the Company's operating leases are as follows: Three months ended September 30, 2019 Nine months ended September 30, 2019 Right-of-use assets obtained in exchange for new operating lease liabilities $ 14,630 $ 76,664 Cash paid for amounts included in the measurement of lease liabilities $ 19,642 $ 58,934 |
Basic and Diluted Earnings pe_2
Basic and Diluted Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles the numerator and the denominator of the basic and diluted per share computations for earnings attributable to shareholders: Three months ended September 30, Net earnings attributable to shareholders Weighted average shares Earnings per share 2019 Basic earnings attributable to shareholders $ 160,221 170,415 $ 0.94 Effect of dilutive potential common shares — 3,068 — Diluted earnings attributable to shareholders $ 160,221 173,483 $ 0.92 2018 Basic earnings attributable to shareholders $ 162,692 173,394 $ 0.94 Effect of dilutive potential common shares — 3,779 — Diluted earnings attributable to shareholders $ 162,692 177,173 $ 0.92 Nine months ended September 30, Net earnings attributable to shareholders Weighted average shares Earnings per share 2019 Basic earnings attributable to shareholders $ 453,069 171,084 $ 2.65 Effect of dilutive potential common shares — 3,379 — Diluted earnings attributable to shareholders $ 453,069 174,463 $ 2.60 2018 Basic earnings attributable to shareholders $ 438,989 174,675 $ 2.51 Effect of dilutive potential common shares — 3,772 — Diluted earnings attributable to shareholders $ 438,989 178,447 $ 2.46 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair value of Cash and Cash Equivalents by Balance Sheet Grouping | Cash and cash equivalents consist of the following: September 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Cash and Cash Equivalents: Cash and overnight deposits $ 398,235 $ 398,235 $ 427,307 $ 427,307 Corporate commercial paper 788,060 788,708 467,300 467,760 Time deposits 29,675 29,675 29,128 29,128 Total cash and cash equivalents $ 1,215,970 $ 1,216,618 $ 923,735 $ 924,195 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information regarding the Company’s operations by geographic area is as follows: UNITED STATES OTHER NORTH AMERICA LATIN AMERICA NORTH ASIA SOUTH ASIA EUROPE MIDDLE EAST, AFRICA AND INDIA ELIMI- NATIONS CONSOLI- DATED For the three months ended September 30, 2019: Revenues 1 $ 692,229 88,088 38,341 624,351 196,569 320,769 115,397 (889 ) 2,074,855 Directly related cost of transportation and other expenses 2 $ 389,254 51,420 22,990 489,195 145,345 221,149 81,592 (446 ) 1,400,499 Salaries and other operating expenses 3 $ 210,767 25,731 14,547 70,410 32,482 86,156 28,151 (438 ) 467,806 Operating income $ 92,208 10,937 804 64,746 18,742 13,464 5,654 (5 ) 206,550 Identifiable assets at period end $ 2,059,345 128,336 72,029 489,322 164,976 563,289 226,657 2,499 3,706,453 Capital expenditures $ 7,644 513 833 523 631 5,119 258 — 15,521 Equity $ 1,578,682 60,526 27,217 216,061 77,733 169,450 111,355 (31,737 ) 2,209,287 For the three months ended September 30, 2018: Revenues 1 $ 629,043 92,875 43,443 748,589 205,392 327,212 118,047 (73,654 ) 2,090,947 Directly related cost of transportation and other expenses 2 $ 345,236 58,464 27,635 601,699 158,226 227,418 83,992 (73,037 ) 1,429,633 Salaries and other operating expenses 3 $ 204,240 23,935 13,399 74,067 31,623 84,136 27,384 (624 ) 458,160 Operating income $ 79,567 10,476 2,409 72,823 15,543 15,658 6,671 7 203,154 Identifiable assets at period end $ 1,694,556 174,402 53,322 540,465 156,887 508,855 212,817 (6,504 ) 3,334,800 Capital expenditures $ 6,889 301 227 1,280 910 751 1,375 — 11,733 Equity $ 1,334,952 66,399 25,663 197,939 86,048 157,973 119,718 (31,360 ) 1,957,332 UNITED STATES OTHER NORTH AMERICA LATIN AMERICA NORTH ASIA SOUTH ASIA EUROPE MIDDLE EAST, AFRICA AND INDIA ELIMI- NATIONS CONSOLI- DATED For the nine months ended September 30, 2019: Revenues 1 $ 2,033,088 265,035 111,277 1,879,155 555,128 952,790 336,383 (2,371 ) 6,130,485 Directly related cost of transportation and other expenses 2 $ 1,142,701 157,997 64,149 1,475,395 407,642 657,720 236,184 (1,468 ) 4,140,320 Salaries and other operating expenses 3 $ 636,243 76,283 41,342 208,781 97,324 258,339 86,385 (884 ) 1,403,813 Operating income $ 254,144 30,755 5,786 194,979 50,162 36,731 13,814 (19 ) 586,352 Identifiable assets at period end $ 2,059,345 128,336 72,029 489,322 164,976 563,289 226,657 2,499 3,706,453 Capital expenditures $ 23,544 1,509 1,071 1,167 1,235 8,015 1,402 — 37,943 Equity $ 1,578,682 60,526 27,217 216,061 77,733 169,450 111,355 (31,737 ) 2,209,287 For the nine months ended September 30, 2018: Revenues 1 $ 1,790,869 257,206 122,170 2,065,405 560,070 977,967 342,589 (213,508 ) 5,902,768 Directly related cost of transportation and other expenses 2 $ 957,997 157,599 75,694 1,640,724 423,612 677,167 242,208 (211,931 ) 3,963,070 Salaries and other operating expenses 3 $ 620,029 70,036 38,996 211,576 92,409 248,906 79,782 (1,592 ) 1,360,142 Operating income $ 212,843 29,571 7,480 213,105 44,049 51,894 20,599 15 579,556 Identifiable assets at period end $ 1,694,556 174,402 53,322 540,465 156,887 508,855 212,817 (6,504 ) 3,334,800 Capital expenditures $ 16,092 4,020 899 2,623 1,934 9,167 2,907 — 37,642 Equity $ 1,334,952 66,399 25,663 197,939 86,048 157,973 119,718 (31,360 ) 1,957,332 1 In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation and other expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change operating income. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised. 2 Directly related cost of transportation and other expenses totals operating expenses from airfreight services, ocean freight and ocean services and customs brokerage and other services as shown in the condensed consolidated statements of earnings. 3 Salaries and other operating expenses totals salaries and related, rent and occupancy, depreciation and amortization, selling and promotion and other as shown in the condensed consolidated statements of earnings. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 374,231 | $ 0 | |
Operating Lease, Liability | 375,422 | ||
Accounts receivable, allowance for doubtful accounts | $ 11,853 | $ 15,345 | |
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 343,000 | ||
Operating Lease, Liability | $ 340,000 |
Leases - Lease Cost (Detail)
Leases - Lease Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lessee Disclosure [Abstract] | ||
Operating lease cost | $ 20,784 | $ 60,832 |
Variable lease cost | 6,990 | 19,867 |
Total lease cost | $ 27,774 | $ 80,699 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Operating Lease Liabilities, Payments, Due, Rolling Maturity [Abstract] | |
2019 | $ 19,112 |
2020 | 77,416 |
2021 | 67,505 |
2022 | 61,044 |
2023 | 52,427 |
Thereafter | 174,492 |
Total minimum lease payments | 451,996 |
Less imputed interest | 76,574 |
Operating Lease, Liability | $ 375,422 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payment (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 75,227 |
2020 | 62,974 |
2021 | 47,552 |
2022 | 38,352 |
2023 | 26,580 |
Thereafter | 67,140 |
Operating Leases, Future Minimum Payments Due | $ 317,825 |
Leases Weighted-Average Remaini
Leases Weighted-Average Remaining Lease Term and Weighted-Average Discount (Detail) | Sep. 30, 2019 |
Weighted-average remaining lease term and weighted-average discount rate [Abstract] | |
Weighted-average remaining lease term (in years) | 7 years 5 months 19 days |
Weighted-average discount rate | 4.94% |
Leases - Other Information Rela
Leases - Other Information Related to Operating Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Supplemental Cash Flow Information Related to Leases [Abstract] | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 14,630 | $ 76,664 |
Cash paid for amounts included in the measurement of lease liabilities | $ 19,642 | $ 58,934 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock compensation expense | $ 12,155 | $ 13,902 | $ 49,361 | $ 43,171 |
Restricted Stock Units (RSUs) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period | 462,000 | 461,000 | ||
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period. Weighted average fair value | $ 75.73 | $ 69.58 | ||
Number of common stock issued per unit based award upon vesting | 100.00% | 100.00% | ||
Restricted Stock Units (RSUs) | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | 3 years | ||
Directors Restricted Stock Plan 2014 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period | 24,000 | 25,000 | ||
Performance Shares | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period | 96,000 | 18,000 | ||
Number of common stock issued per unit based award upon vesting | 100.00% | 100.00% | ||
Maximum adjustment factor | 200.00% | 200.00% | ||
Minimum adjustment factor | 50.00% | 50.00% | ||
Minimum shares issued | 0 | 0 | ||
Employee Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period. Weighted average fair value | $ 17.03 | $ 17.49 | ||
Stock issued during period, shares, employee stock purchase plans | 585,000 | 666,000 | 585,000 | 666,000 |
Retirement Eligible Restricted Stock Unit (RSUs) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock or unit expense | $ 5,000 | $ 4,000 | ||
Retirement Eligible Performance Stock Unit (PSUs) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period | 0 | |||
Stock compensation expense | $ 5,000 |
Income Taxes Income Taxes - Add
Income Taxes Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Taxes [Line Items] | ||||
Income tax expense | $ 53,319 | $ 45,357 | $ 156,029 | $ 155,871 |
Effective income tax rate reconciliation, percent | 24.90% | 21.80% | 25.60% | 26.10% |
Global Intangible Low-Taxed Income | ||||
Income Taxes [Line Items] | ||||
Income tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
Base Erosion and Anti-Abuse Tax | ||||
Income Taxes [Line Items] | ||||
Income tax expense | $ 0 | 0 | $ 0 | $ 0 |
Tax Cuts and Jobs Act | ||||
Income Taxes [Line Items] | ||||
Tax credits from withholding taxes paid on repatriated foreign earnings | 7,000 | |||
State and Local Jurisdiction | ||||
Income Taxes [Line Items] | ||||
State income tax refund | $ (4,000) |
Basic and Diluted Earnings pe_3
Basic and Diluted Earnings per Share - Numerator and Denominator of the Basic and Diluted Per Share Computations for Earnings Attributable to Shareholders Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Earnings Attributable to Shareholders | ||||
Basic earnings attributable to shareholders | $ 160,221 | $ 162,692 | $ 453,069 | $ 438,989 |
Diluted earnings attributable to shareholders | $ 160,221 | $ 162,692 | $ 453,069 | $ 438,989 |
Weighted Average Shares | ||||
Weighted average basic shares outstanding | 170,415 | 173,394 | 171,084 | 174,675 |
Effect of dilutive potential common shares | 3,068 | 3,779 | 3,379 | 3,772 |
Weighted average diluted shares outstanding | 173,483 | 177,173 | 174,463 | 178,447 |
Earnings Per Share | ||||
Basic earnings attributable to shareholders per share | $ 0.94 | $ 0.94 | $ 2.65 | $ 2.51 |
Diluted earnings attributable to shareholders per share | $ 0.92 | $ 0.92 | $ 2.60 | $ 2.46 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - $ / shares shares in Thousands | Nov. 04, 2019 | May 07, 2019 | May 08, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Class of Stock [Line Items] | |||||
Expected common stock shares issued and outstanding | 160,000 | ||||
Date of declaration of dividends | May 7, 2019 | May 8, 2018 | |||
Dividend declared per share | $ 0.50 | $ 0.45 | |||
Date of dividend payment | Jun. 17, 2019 | Jun. 15, 2018 | |||
Dividends payable to shareholders date of record | Jun. 3, 2019 | Jun. 1, 2018 | |||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Date of declaration of dividends | Nov. 4, 2019 | ||||
Dividend declared per share | $ 0.50 | ||||
Date of dividend payment | Dec. 16, 2019 | ||||
Dividends payable to shareholders date of record | Dec. 2, 2019 | ||||
Discretionary Plan | |||||
Class of Stock [Line Items] | |||||
Shares repurchased | 4,002 | 5,378 | |||
Average price per share | $ 72.57 | $ 71.07 | |||
Non-Discretionary Plan | |||||
Class of Stock [Line Items] | |||||
Shares repurchased | 88 | 2,386 | |||
Average price per share | $ 74.03 | $ 72.72 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Cost | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and cash equivalents | $ 1,215,970 | $ 923,735 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and cash equivalents | 1,216,618 | 924,195 |
Cash and Overnight Deposits | Cost | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and cash equivalents | 398,235 | 427,307 |
Cash and Overnight Deposits | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and cash equivalents | 398,235 | 427,307 |
Corporate Commercial Paper | Cost | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and cash equivalents | 788,060 | 467,300 |
Corporate Commercial Paper | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and cash equivalents | 788,708 | 467,760 |
Time Deposits | Cost | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and cash equivalents | 29,675 | 29,128 |
Time Deposits | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and cash equivalents | $ 29,675 | $ 29,128 |
Business Segment Information -
Business Segment Information - Financial Information Regarding Company's Operations by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | $ 2,074,855 | $ 2,090,947 | $ 6,130,485 | $ 5,902,768 | ||||
Directly related cost of transportation and other expenses | [2] | 1,400,499 | 1,429,633 | 4,140,320 | 3,963,070 | ||||
Salaries and other operating expenses | [3] | 467,806 | 458,160 | 1,403,813 | 1,360,142 | ||||
Operating income | 206,550 | 203,154 | 586,352 | 579,556 | |||||
Identifiable assets at period end | 3,706,453 | 3,334,800 | 3,706,453 | 3,334,800 | $ 3,314,559 | ||||
Capital expenditures | 15,521 | 11,733 | 37,943 | 37,642 | |||||
Equity | 2,209,287 | 1,957,332 | 2,209,287 | 1,957,332 | $ 2,052,394 | $ 1,987,720 | $ 1,892,559 | $ 1,994,373 | |
Intersegment Eliminations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | (889) | (73,654) | (2,371) | (213,508) | ||||
Directly related cost of transportation and other expenses | [2] | (446) | (73,037) | (1,468) | (211,931) | ||||
Salaries and other operating expenses | [3] | (438) | (624) | (884) | (1,592) | ||||
Operating income | (5) | 7 | (19) | 15 | |||||
Identifiable assets at period end | 2,499 | (6,504) | 2,499 | (6,504) | |||||
Equity | (31,737) | (31,360) | (31,737) | (31,360) | |||||
Operating Segments | United States Segment | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 692,229 | 629,043 | 2,033,088 | 1,790,869 | ||||
Directly related cost of transportation and other expenses | [2] | 389,254 | 345,236 | 1,142,701 | 957,997 | ||||
Salaries and other operating expenses | [3] | 210,767 | 204,240 | 636,243 | 620,029 | ||||
Operating income | 92,208 | 79,567 | 254,144 | 212,843 | |||||
Identifiable assets at period end | 2,059,345 | 1,694,556 | 2,059,345 | 1,694,556 | |||||
Capital expenditures | 7,644 | 6,889 | 23,544 | 16,092 | |||||
Equity | 1,578,682 | 1,334,952 | 1,578,682 | 1,334,952 | |||||
Operating Segments | Other North America Segment | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 88,088 | 92,875 | 265,035 | 257,206 | ||||
Directly related cost of transportation and other expenses | [2] | 51,420 | 58,464 | 157,997 | 157,599 | ||||
Salaries and other operating expenses | [3] | 25,731 | 23,935 | 76,283 | 70,036 | ||||
Operating income | 10,937 | 10,476 | 30,755 | 29,571 | |||||
Identifiable assets at period end | 128,336 | 174,402 | 128,336 | 174,402 | |||||
Capital expenditures | 513 | 301 | 1,509 | 4,020 | |||||
Equity | 60,526 | 66,399 | 60,526 | 66,399 | |||||
Operating Segments | Latin America Segment | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 38,341 | 43,443 | 111,277 | 122,170 | ||||
Directly related cost of transportation and other expenses | [2] | 22,990 | 27,635 | 64,149 | 75,694 | ||||
Salaries and other operating expenses | [3] | 14,547 | 13,399 | 41,342 | 38,996 | ||||
Operating income | 804 | 2,409 | 5,786 | 7,480 | |||||
Identifiable assets at period end | 72,029 | 53,322 | 72,029 | 53,322 | |||||
Capital expenditures | 833 | 227 | 1,071 | 899 | |||||
Equity | 27,217 | 25,663 | 27,217 | 25,663 | |||||
Operating Segments | North Asia Segment | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 624,351 | 748,589 | 1,879,155 | 2,065,405 | ||||
Directly related cost of transportation and other expenses | [2] | 489,195 | 601,699 | 1,475,395 | 1,640,724 | ||||
Salaries and other operating expenses | [3] | 70,410 | 74,067 | 208,781 | 211,576 | ||||
Operating income | 64,746 | 72,823 | 194,979 | 213,105 | |||||
Identifiable assets at period end | 489,322 | 540,465 | 489,322 | 540,465 | |||||
Capital expenditures | 523 | 1,280 | 1,167 | 2,623 | |||||
Equity | 216,061 | 197,939 | 216,061 | 197,939 | |||||
Operating Segments | South Asia Segment | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 196,569 | 205,392 | 555,128 | 560,070 | ||||
Directly related cost of transportation and other expenses | [2] | 145,345 | 158,226 | 407,642 | 423,612 | ||||
Salaries and other operating expenses | [3] | 32,482 | 31,623 | 97,324 | 92,409 | ||||
Operating income | 18,742 | 15,543 | 50,162 | 44,049 | |||||
Identifiable assets at period end | 164,976 | 156,887 | 164,976 | 156,887 | |||||
Capital expenditures | 631 | 910 | 1,235 | 1,934 | |||||
Equity | 77,733 | 86,048 | 77,733 | 86,048 | |||||
Operating Segments | Europe Segment | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 320,769 | 327,212 | 952,790 | 977,967 | ||||
Directly related cost of transportation and other expenses | [2] | 221,149 | 227,418 | 657,720 | 677,167 | ||||
Salaries and other operating expenses | [3] | 86,156 | 84,136 | 258,339 | 248,906 | ||||
Operating income | 13,464 | 15,658 | 36,731 | 51,894 | |||||
Identifiable assets at period end | 563,289 | 508,855 | 563,289 | 508,855 | |||||
Capital expenditures | 5,119 | 751 | 8,015 | 9,167 | |||||
Equity | 169,450 | 157,973 | 169,450 | 157,973 | |||||
Operating Segments | Middle East Africa And India Segment | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 115,397 | 118,047 | 336,383 | 342,589 | ||||
Directly related cost of transportation and other expenses | [2] | 81,592 | 83,992 | 236,184 | 242,208 | ||||
Salaries and other operating expenses | [3] | 28,151 | 27,384 | 86,385 | 79,782 | ||||
Operating income | 5,654 | 6,671 | 13,814 | 20,599 | |||||
Identifiable assets at period end | 226,657 | 212,817 | 226,657 | 212,817 | |||||
Capital expenditures | 258 | 1,375 | 1,402 | 2,907 | |||||
Equity | $ 111,355 | $ 119,718 | $ 111,355 | $ 119,718 | |||||
[1] | In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation and other expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change operating income. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised. | ||||||||
[2] | Directly related cost of transportation and other expenses totals operating expenses from airfreight services, ocean freight and ocean services and customs brokerage and other services as shown in the condensed consolidated statements of earnings. | ||||||||
[3] | Salaries and other operating expenses totals salaries and related, rent and occupancy, depreciation and amortization, selling and promotion and other as shown in the condensed consolidated statements of earnings. |