| Statement Of Financial Position Classified (USD $) | ||
| In Thousands | Sep. 30, 2009
| Dec. 31, 2008
|
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $376,274 | $494,743 |
| Available-for-sale securities | 11,918 | 2,644 |
| Receivables, net of allowance for doubtful accounts of $32,212 and $29,263 | 884,565 | 828,884 |
| Deferred tax asset | 7,046 | 5,413 |
| Prepaid expenses and other | 32,477 | 16,187 |
| Total current assets | 1,312,280 | 1,347,871 |
| PROPERTY AND EQUIPMENT, net | 118,785 | 104,088 |
| GOODWILL | 363,195 | 324,704 |
| INTANGIBLE AND OTHER ASSETS, net | 32,272 | 24,225 |
| LONG TERM DEFERRED TAX ASSET | 15,501 | 14,833 |
| Total assets | 1,842,033 | 1,815,721 |
| CURRENT LIABILITIES: | ||
| Accounts payable and outstanding checks | 590,798 | 568,758 |
| Accrued expenses: | ||
| Compensation and profit-sharing contribution | 79,249 | 93,431 |
| Other accrued liabilities | 27,974 | 35,464 |
| Total current liabilities | 698,021 | 697,653 |
| LONG TERM LIABILITIES: | ||
| Non current income taxes payable | 10,843 | 9,887 |
| Nonqualified deferred compensation obligation | 995 | 960 |
| Other long term liabilities | 13,931 | 0 |
| Total liabilities | 723,790 | 708,500 |
| 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; 176,128 shares issued; 167,922 and 170,437 shares outstanding | 16,792 | 17,044 |
| Retained earnings | 1,357,134 | 1,207,428 |
| Additional paid-in capital | 167,003 | 177,486 |
| Accumulated other comprehensive income | 202 | 2,165 |
| Treasury stock at cost (8,206 and 5,691 shares) | (422,888) | (296,902) |
| Total stockholders' investment | 1,118,243 | 1,107,221 |
| Total liabilities and stockholders' investment | $1,842,033 | $1,815,721 |
| Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
| In Thousands, except Per Share data | Sep. 30, 2009
| Dec. 31, 2008
|
| Receivables, allowance for doubtful accounts | $32,212 | $29,263 |
| Preferred stock, par value | 0.1 | 0.1 |
| Preferred stock, shares authorized | 20,000 | 20,000 |
| Preferred stock, shares issued | 0 | 0 |
| Preferred stock, shares outstanding | 0 | 0 |
| Common stock, par value | 0.1 | 0.1 |
| Common stock, shares authorized | 480,000 | 480,000 |
| Common stock, shares issued | 176,128 | 176,128 |
| Common stock, shares outstanding | 167,922 | 170,437 |
| Treasury stock, shares | 8,206 | 5,691 |
| Statement Of Income Alternative (USD $) | ||||
| In Thousands, except Per Share data | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
| REVENUES: | ||||
| Transportation | $1,563,335 | $1,953,555 | $4,369,438 | $5,522,521 |
| Sourcing | 379,594 | 350,060 | 1,165,738 | 1,062,290 |
| Information Services | 11,874 | 12,978 | 33,647 | 38,700 |
| Total revenues | 1,954,803 | 2,316,593 | 5,568,823 | 6,623,511 |
| COSTS AND EXPENSES: | ||||
| Purchased transportation and related services | 1,253,503 | 1,643,168 | 3,455,689 | 4,615,979 |
| Purchased products sourced for resale | 348,734 | 321,837 | 1,070,261 | 976,729 |
| Personnel expenses | 148,750 | 152,331 | 453,716 | 452,606 |
| Other selling, general, and administrative expenses | 49,015 | 50,638 | 147,104 | 148,995 |
| Total costs and expenses | 1,800,002 | 2,167,974 | 5,126,770 | 6,194,309 |
| INCOME FROM OPERATIONS | 154,801 | 148,619 | 442,053 | 429,202 |
| INVESTMENT AND OTHER INCOME | 439 | 1,595 | 1,658 | 5,778 |
| INCOME BEFORE PROVISION FOR INCOME TAXES | 155,240 | 150,214 | 443,711 | 434,980 |
| PROVISION FOR INCOME TAXES | 59,780 | 56,654 | 170,615 | 164,684 |
| NET INCOME | 95,460 | 93,560 | 273,096 | 270,296 |
| OTHER COMPREHENSIVE INCOME (LOSS): | ||||
| Foreign currency translation adjustment | 1,755 | (4,152) | (1,961) | 1,843 |
| COMPREHENSIVE INCOME | $97,215 | $89,408 | $271,135 | $272,139 |
| BASIC NET INCOME PER SHARE | 0.57 | 0.55 | 1.62 | 1.6 |
| DILUTED NET INCOME PER SHARE | 0.57 | 0.54 | 1.61 | 1.56 |
| BASIC WEIGHTED AVERAGE SHARES OUTSTANDING | 167,191 | 168,864 | 168,168 | 169,432 |
| DILUTIVE EFFECT OF OUTSTANDING STOCK AWARDS | 1,457 | 3,582 | 1,578 | 3,804 |
| DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING | 168,648 | 172,446 | 169,746 | 173,236 |
| Statement Of Cash Flows Indirect (USD $) | ||
| In Thousands | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
| OPERATING ACTIVITIES | ||
| Net income | $273,096 | $270,296 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Stock-based compensation | 17,187 | 16,562 |
| Depreciation and amortization | 22,195 | 23,198 |
| Provision for doubtful accounts | 13,626 | 9,982 |
| Other non-cash (income) expense | (2,238) | 4,810 |
| Changes in operating elements: | ||
| Receivables | (52,983) | (182,747) |
| Prepaid expenses and other | (15,127) | (2,772) |
| Accounts payable and outstanding checks | 8,007 | 58,300 |
| Accrued compensation and profit-sharing contribution | (12,216) | (19,180) |
| Other accrued liabilities | (9,176) | (3,118) |
| Net cash provided by operating activities | 242,371 | 175,331 |
| INVESTING ACTIVITIES | ||
| Purchases of property and equipment | (28,993) | (16,108) |
| Purchases of available-for-sale-securities | (11,915) | (136,954) |
| Sales/maturities of available-for-sale-securities | 2,763 | 250,489 |
| Net cash paid for acquisitions | (43,537) | (59,696) |
| Other | 213 | 677 |
| Net cash (used for) provided by investing activities | (81,469) | 38,408 |
| FINANCING ACTIVITIES | ||
| Repayments of acquired line of credit | 0 | (9,383) |
| Proceeds from stock issued for employee benefit plans | 14,248 | 19,662 |
| Repurchase of common stock | (176,971) | (150,139) |
| Excess tax benefit on stock-based compensation plans | 8,052 | 9,802 |
| Cash dividends | (122,023) | (113,477) |
| Net cash used for financing activities | (276,694) | (243,535) |
| Effect of exchange rates on cash | (2,677) | 2,828 |
| Net change in cash and cash equivalents | (118,469) | (26,968) |
| CASH AND CASH EQUIVALENTS, beginning of period | 494,743 | 338,885 |
| CASH AND CASH EQUIVALENTS, end of period | $376,274 | $311,917 |
| 1. General | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| 1. General | 1. General Basis of Presentation C.H. Robinson Worldwide, Inc. and our subsidiaries (the company, we, us, or our) are a global provider of multimodal transportation services and logistics solutions through a network of 235 branch offices operating in North America, Europe, Asia, South America, Australia, and the Middle East. The condensed 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 condensed consolidated financial statements. The condensed consolidated financial statements, which are unaudited, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). In our opinion, these financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods presented. Interim results are not necessarily indicative of results for a full year. Consistent with SEC rules and regulations, we have condensed or omitted certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States. You should read the condensed consolidated financial statements and related notes in conjunction with the consolidated financial statements and notes in our Annual Report on Form 10-K for the year ended December31, 2008. For the quarter ended September30, 2009, we have evaluated subsequent events for potential recognition and disclosure through November9, 2009, the date of this filing. |
| 2. Goodwill and Intangible Assets | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| 2. Goodwill and Intangible Assets | 2. Goodwill and Intangible Assets The change in the carrying amount of goodwill for the period ended September30, 2009 is as follows (in thousands): Balance December31, 2008 $ 324,704 Acquisitions 37,653 Foreign currency translation 838 Balance September30, 2009 $ 363,195 A summary of our other intangible assets, which include primarily non-competition agreements and customer relationships, is as follows (in thousands): September30, 2009 December31, 2008 Gross amortizable other intangible assets $ 43,519 $ 35,869 Accumulated amortization (24,762 ) (20,969 ) Net amortizable other intangible assets $ 18,757 $ 14,900 We also have a trademark valued at $1.8 million which has an indefinite life. Amortization expense for the nine months ended September30, 2009 and 2008 for other intangible assets was $5.2 million and $4.6 million. Estimated amortization expense for each of the five succeeding fiscal years based on the intangible assets at September30, 2009 is as follows (in thousands): Remainder of 2009 $ 2,043 2010 4,882 2011 3,799 2012 3,125 2013 2,913 2014 1,995 Total $ 18,757 |
| 3. Litigation | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| 3. Litigation | 3. Litigation Gender Discrimination LawsuitAs we previously disclosed, certain gender discrimination class claims were settled in 2006. The settlement was within our insurance coverage limits, and was fully funded by insurance. Although the gender class settlement was fully funded by insurance, those insurers reserved the right to seek a court ruling that a portion of the settlement was not covered under their policies, and also to dispute payment of certain defense costs incurred in that litigation. Insurance coverage litigation between us and one of our insurance carriers concerning these issues and insurance coverage for individual lawsuits that were not part of the class settlement has been pending in Minnesota State Court. Recent court rulings have determined that the gender class settlement payment was appropriately covered under applicable policies, and that the insurance carrier has a duty to reimburse reasonable defense costs in the gender class action in all but two of the individual lawsuits. This ruling is being appealed by the insurance carrier. The settlement of the gender discrimination class claims did not include claims of putative class members who subsequently filed individual Equal Employment Opportunity Commission (EEOC) charges after the denial of class status. Fifty-four of those EEOC claimants filed lawsuits. Fifty-three of those suits have been settled or dismissed. The settlement amounts were not material to our financial position, results of operations, or cash flows. We are vigorously defending the remaining lawsuit. Accident LitigationOn March20, 2009 a jury in Will County, Illinois entered a verdict of $23.75 million against us, a federally authorized motor carrier with which we contracted, and the motor carriers driver. The award was entered in favor of three named plaintiffs following a consolidated trial, stemming from an accident that occurred on April1, 2004. The motor carrier and the driver both admitted that at the time of the accident the driver was acting as an agent for the motor carrier, and that the load was being transported according to the terms of our contract with the motor carrier. Our contract clearly defined the motor carrier as an independent contractor. The verdict has the effect of holding us vicariously liable for the damages caused by the admitted negligence of the motor carrier and its driver. There were no claims that our selection or retention of the motor carrier was negligent. Given our prior experience with claims of this nature, we believe the court erred in allowing theses claims to be considered by a jury. As a result we are vigorously pursuing all available legal avenues by which we may obtain relief from the verdict. On September15, 2009, the trial court entered an order denying substantially all of the relief which we had requested in our post-trial motions. Now that the trial court has concluded its handling of the matter, we are entitled to and will be seeking relief from the verdict from the Illinois Court of Appeals. Under the terms of the insurance program which we had in place in 2004 we would be responsible for the first $5.0 million of claims of this nat |
| 4. Fair Value Measurement | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| 4. Fair Value Measurement | 4. 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 entitys own assumptions or external inputs from inactive markets. A financial asset or liabilitys classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. The following table presents information as of September30, 2009, about our financial assets and liabilities that are measured at fair value on a recurring basis, according to the valuation techniques we used to determine their fair values. Level 1 Level2 Level 3 TotalFair Value Cash and cash equivalents $ 376,274 $ $ $ 376,274 Debt securities- Available-for-sale: State and municipal obligations 11,918 11,918 Total assets at fair value $ 376,274 $ 11,918 $ $ 388,192 Contingent purchase price related to acquisitions 14,436 14,436 Total liabilities at fair value $ $ $ 14,436 $ 14,436 The carrying value of cash and cash equivalents approximates fair value as maturities are three months or less. The estimated fair values of debt securities held as available-for-sale are based on other market data for comparable instruments and the transactions related in establishing the prices. In measuring the fair value of the contingent payment liability, we used an income approach that considers the expected future earnings of the acquired businesses and the resulting contingent payments, discounted at a risk-adjusted rate. The table below sets forth a reconciliation of our beginning and ending Level 3 financial liability balances for the quarter ended September 30, 2009. Balance December 31, 2008 $ Contingent purchase price related to acquisitions 14,436 Balance September 30, 2009 $ 14,436 |
| 5. Stock Award Plans | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| 5. Stock Award Plans | 5. 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 over the vesting period. Total compensation expense recognized in our statements of operations for stock-based compensation awards was $5.5 million and $4.0 million for the three months ended September30, 2009 and 2008 and $17.2 million and $16.6 million for the nine months ended September30, 2009 and 2008. Our 1997 Omnibus Stock Plan allows us to grant certain stock awards, including stock options at fair market value and restricted shares and units, to our key employees and outside directors. A maximum of 28,000,000 shares can be granted under this plan; approximately 8,900,000 shares were available for stock awards as of September30, 2009, which cover stock options and restricted stock awards. Awards that expire or are cancelled without delivery of shares generally become available for issuance under the plans. Stock OptionsThe contractual lives of all options as originally granted are ten years. Options vested over a five-year period from the date of grant, with none vesting the first year and one quarter vesting each year after that. Recipients are able to exercise options using a stock swap which results in a new, fully-vested restoration option with a grant price established based on the date of the swap and a remaining contractual life equal to the remaining life of the original option. Options issued to non-employee directors vest immediately. The fair value per option is established using the Black-Scholes option pricing model, with the resulting expense being recorded over the vesting period of the award. Other than restoration options, we have not issued any new stock options since 2003. As of September30, 2009, there was no unrecognized compensation expense related to stock options since all outstanding options were fully vested. Restricted Stock AwardsWe have awarded performance-based restricted shares and restricted units to certain key employees and non-employee directors. These restricted shares and restricted units are subject to certain vesting requirements over a five-year period, based on the operating performance of the company. The awards also contain restrictions on the awardees ability to sell or transfer vested shares or units for a specified period of time. The fair value of these shares is established based on the market price on the date of grant, discounted for post-vesting holding restrictions. The discounts have varied from 12 percent to 22 percent and are calculated using the Black-Scholes option pricing model. Increased stock price volatility is the primary reason that the discount increased. These grants are being expensed based on the terms of the awards. We have also awarded to certain key employees restricted shares and units that vest primarily based on continued employment. The value of these awards is established by the market price on the date of the grant and is being expensed over the vesting period of the award. As of September30, 2009, there was unrecognized compensation expense of $116.0 million related to previously granted restricted equity |
| 6. Income Taxes | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| 6. Income Taxes | 6. 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 2005. Our effective income tax rate was 38.5 percent for the third quarter of 2009 and 37.7 percent for the third quarter of 2008. The effective income tax rate for both periods is greater than the statutory federal income tax rate primarily due to state income taxes, net of federal benefit. |
| 7. Acquisitions | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| 7. Acquisitions | 7. Acquisitions On June 12, 2009, we acquired the operating subsidiaries of Walker Logistics Overseas, Ltd (Walker). Walker is a leading international freight forwarder headquartered in London. Walker is a global, fully integrated import and export door-to-door provider specializing in air freight, ocean freight warehousing, courier, and logistics solutions. Its customers are primarily in electronics, telecommunications, medical, sporting goods, and military industries. The majority of their revenues are from air and ocean freight. On July7, 2009, we acquired certain assets of International Trade Commerce, Inc. (ITC). ITC is a United States customs brokerage company specializing in warehousing and distribution and cross-border services between the United States and Mexico. ITC is headquartered in Laredo, Texas and has approximately 40 employees and staff. ITC provides a broad range of services facilitating customers international customs brokerage needs across all modes of transportation. ITC strengthens our ability to provide customers a seamless cross-border service package across the United States and Mexico border. On September14, 2009, we acquired certain assets of Rosemont Farms Corporation, Inc. (Rosemont), a produce marketing company, and its sister company Quality Logistics, LLC (Quality Logistics), a non-asset based transportation provider that focuses on produce transportation. Rosemont is headquartered in Boca Raton, Florida and has approximately 100 employees. Rosemont offers produce and logistics solutions to retail and foodservice customers. The total cash paid at closing for these three acquisitions was $43.5 million all of which was paid in cash. In addition, there are contingent cash payments to the sellers of ITC and Rosemont over a three-year period based on defined operating results of the acquired businesses, up to a predetermined maximum amount of $20.5 million. We anticipate that these contingent cash payments will be fully earned. We have recognized the liability on our accompanying balance sheet at fair value. Goodwill recognized in these transactions amounted to $37.7 million. Other intangible assets related to the acquisition amounted to $9.3 million which consists of customer and supplier relationships and non-competition agreements, which are being amortized over five years.We also acquired a trademark with the acquisition of Rosemont, which has an indefinite life. All goodwill and other intangible assets related to these acquisitions are tax deductible over 15 years. Our results of operations were not materially impacted by these acquisitions. |
| Document Information | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Document Information [Text Block] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Document Period End Date | 2009-09-30 |
| Entity Information (USD $) | ||
| 9 Months Ended
Sep. 30, 2009 | Nov. 05, 2009
| |
| Entity [Text Block] | ||
| Trading Symbol | CHRW | |
| Entity Registrant Name | C H ROBINSON WORLDWIDE INC | |
| Entity Central Index Key | 0001043277 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 167,741,444 |
