Expeditors International of Washington (EXPD) 10-Q 4 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 01, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	EXPEDITORS INTERNATIONAL OF WASHINGTON INC
Entity Central Index Key	746,515
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Trading Symbol	EXPD
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		180,164,709

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 1,156,043	$ 974,435
Accounts receivable, less allowance for doubtful accounts of $9,911 at March 31, 2017 and $9,247 at December 31, 2016	1,126,488	1,190,130
Other	119,265	54,014
Total current assets	2,401,796	2,218,579
Property and equipment, less accumulated depreciation and amortization of $394,154 at March 31, 2017 and $406,652 at December 31, 2016	463,604	536,572
Goodwill	7,927	7,927
Other assets, net	29,392	27,793
Total assets	2,902,719	2,790,871
Current Liabilities:
Accounts payable	701,122	726,571
Accrued expenses, primarily salaries and related costs	205,255	185,502
Federal, state and foreign income taxes	20,427	17,858
Total current liabilities	926,804	929,931
Deferred Federal and state income taxes	24,195	13,727
Commitments and contingencies
Shareholders' Equity:
Preferred stock, none issued	0	0
Common stock, par value $0.01 per share. Issued and outstanding 179,924 shares at March 31, 2017 and 179,857 shares at December 31, 2016	1,800	1,799
Additional paid-in capital	4,721	2,642
Retained earnings	2,038,053	1,944,789
Accumulated other comprehensive loss	(95,678)	(104,592)
Total shareholders’ equity	1,948,896	1,844,638
Noncontrolling interest	2,824	2,575
Total equity	1,951,720	1,847,213
Total liabilities and equity	$ 2,902,719	$ 2,790,871

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 9,911	$ 9,247
Property and equipment, accumulated depreciation	$ 394,154	$ 406,652
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	179,924	179,857
Common stock, shares outstanding	179,924	179,857

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Airfreight services	$ 615,545	$ 560,853
Ocean freight and ocean services	493,759	454,192
Customs brokerage and other services	435,828	403,427
Total revenues	1,545,132	1,418,472
Operating Expenses:
Airfreight services	443,404	388,777
Ocean freight and ocean services	366,063	323,020
Customs brokerage and other services	208,060	189,606
Salaries and related costs	292,580	283,355
Rent and occupancy costs	28,130	26,859
Depreciation and amortization	11,927	11,329
Selling and promotion	10,915	9,432
Other	37,939	34,268
Total operating expenses	1,399,018	1,266,646
Operating income	146,114	151,826
Other Income (Expense):
Interest income	2,741	2,779
Other, net	298	879
Other income (expense), net	3,039	3,658
Earnings before income taxes	149,153	155,484
Income tax expense	55,586	58,437
Net earnings	93,567	97,047
Less net earnings attributable to the noncontrolling interest	303	463
Net earnings attributable to shareholders	$ 93,264	$ 96,584
Diluted earnings attributable to shareholders per share	$ 0.51	$ 0.53
Basic earnings attributable to shareholders per share	$ 0.52	$ 0.53
Weighted average diluted shares outstanding	182,094	183,018
Weighted average basic shares outstanding	180,062	182,010

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net earnings	$ 93,567	$ 97,047
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of tax of $4,876 and $5,187 for the three months ended March 31, 2017 and 2016	8,860	9,580
Other comprehensive income	8,860	9,580
Comprehensive income	102,427	106,627
Less comprehensive income attributable to the noncontrolling interest	249	577
Comprehensive income attributable to shareholders	$ 102,178	$ 106,050

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract]
Foreign currency translation adjustments, tax	$ 4,876	$ 5,187

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating Activities:
Net earnings	$ 93,567	$ 97,047
Adjustments to reconcile net earnings to net cash from operating activities:
Provision for losses on accounts receivable	931	578
Deferred income tax expense	5,593	9,896
Stock compensation expense	10,623	10,831
Depreciation and amortization	11,927	11,329
Other, net	(351)	36
Changes in operating assets and liabilities:
Decrease in accounts receivable	75,454	112,710
Decrease in accounts payable and accrued expenses	(18,324)	(15,344)
Increase in income taxes payable, net	19,824	10,925
Increase in other current assets	(3,565)	(2,055)
Net cash from operating activities	195,679	235,953
Investing Activities:
Purchase of property and equipment	(12,761)	(14,035)
Other, net	(671)	(559)
Net cash from investing activities	(13,432)	(14,594)
Financing Activities:
Proceeds from issuance of common stock	45,365	41,635
Repurchases of common stock	(53,908)	(70,292)
Net cash from financing activities	(8,543)	(28,657)
Effect of exchange rate changes on cash and cash equivalents	7,904	13,419
Increase in cash and cash equivalents	181,608	206,121
Cash and cash equivalents at beginning of period	974,435	807,796
Cash and cash equivalents at end of period	1,156,043	1,013,917
Taxes Paid:
Income taxes	$ 29,146	$ 37,984

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	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 to 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 23, 2017. 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. Certain prior year amounts have been reclassified to conform to the 2017 presentation. B. 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 its customers to pay deteriorates. The Company has recorded an allowance for doubtful accounts in the amounts of $9,911 as of March 31, 2017 and $9,247 as of December 31, 2016 . Additions and write-offs have not been significant in the periods presented. C. 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 disclosure 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 which the Company has self-insured, accrual of various tax liabilities, accrual of loss contingencies and calculation of share-based compensation expense. Actual results could differ from those estimates.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2017
Share-based Compensation [Abstract]
Share-Based Compensation	Share-Based Compensation Historically, the Company has provided compensation benefits by granting stock options and employee stock purchase rights to its employees and restricted shares to its directors. The Company has historically granted the majority of its options during the second quarter of each fiscal year and no options were granted in the three months ended March 31, 2017 and 2016. 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 none were issued in the three-month periods ended March 31, 2017 and 2016 . Subsequent to the end of the quarter, on May 2, 2017 , shareholders approved the 2017 Omnibus Incentive Plan (2017 Plan), which made available 2.5 million shares of the Company's common stock to be issued under all award types allowed by the 2017 Plan. In May 2017, the Company awarded restricted stock units to certain employees and performance stock units to its Chief Executive Officer. The Company does not plan to grant stock options in 2017. The Company recognizes stock compensation expense based on an estimate of the fair value of awards granted to employees and directors under the Company’s 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 stock awards' vesting periods as salaries and related costs. Beginning on January 1, 2017, the Company adopted accounting guidance requiring that, prospectively, excess tax benefits and deficiencies be recorded in income tax expense for stock option exercises, cancellations and disqualifying dispositions of employee stock purchase plan shares. Also, the Company has elected to continue to estimate forfeitures expected to occur in determining compensation cost to be recognized in each period. Total stock compensation expense and the total related tax benefit recognized are as follows: Three months ended March 31, 2017 2016 Stock compensation expense $ 10,623 $ 10,831 Recognized tax benefit $ 2,213 $ 1,730

Basic and Diluted Earnings per

Basic and Diluted Earnings per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Basic and Diluted Earnings per Share	Basic and Diluted Earnings per Share 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 March 31, (Amounts in thousands, except per share amounts) Net earnings attributable to shareholders Weighted average shares Earnings per share 2017 Basic earnings attributable to shareholders $ 93,264 180,062 $ 0.52 Effect of dilutive potential common shares — 2,032 — Diluted earnings attributable to shareholders $ 93,264 182,094 $ 0.51 2016 Basic earnings attributable to shareholders $ 96,584 182,010 $ 0.53 Effect of dilutive potential common shares — 1,008 — Diluted earnings attributable to shareholders $ 96,584 183,018 $ 0.53 The following potential common shares have been excluded from the computation of diluted earnings per share because the effect would have been antidilutive: Three months ended March 31, 2017 2016 Shares 3,751 9,414

Components of Equity

Components of Equity	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
Components of Equity	Components of Equity The components of equity for the three months ended March 31, 2017 and 2016 are as follows: Shareholders’ equity Noncontrolling interest Total equity Balance at December 31, 2016 $ 1,844,638 2,575 1,847,213 Exercise of stock options 45,365 — 45,365 Shares repurchased under provisions of stock repurchase plans (53,908 ) — (53,908 ) Stock compensation expense 10,623 — 10,623 Net earnings 93,264 303 93,567 Other comprehensive income (loss) 8,914 (54 ) 8,860 Balance at March 31, 2017 $ 1,948,896 2,824 1,951,720 Balance at December 31, 2015 $ 1,691,993 2,683 1,694,676 Exercise of stock options 41,635 — 41,635 Shares repurchased under provisions of stock repurchase plans (70,292 ) — (70,292 ) Stock compensation expense 10,831 — 10,831 Tax benefits from stock plans, net (966 ) — (966 ) Net earnings 96,584 463 97,047 Other comprehensive income 9,466 114 9,580 Balance at March 31, 2016 $ 1,779,251 3,260 1,782,511 The Company has a Non-Discretionary Stock Repurchase Plan to repurchase shares from the proceeds of stock option exercises and employee stock purchases. During the three-month periods ended March 31, 2017 and 2016 , 954 and 423 shares were repurchased at an average price of $56.49 and $47.60 per share, respectively. The Company also has a Discretionary Stock Repurchase Plan approved by the Board of Directors that authorizes management to reduce issued and outstanding stock down to 170 million shares of common stock. No shares were purchased during the three -month period ended March 31, 2017 , and 1,048 shares were repurchased at an average price of $47.87 per share during the first quarter of 2016. Accumulated other comprehensive loss consisted entirely of foreign currency translation adjustments, net of related income tax effects, for all the periods presented. Subsequent to the end of the first quarter, on May 2, 2017 , the Board of Directors declared a semi-annual dividend of $0.42 per share payable on June 15, 2017 to shareholders of record as of June 1, 2017 .

Assets Held for Sale Assets Hel

Assets Held for Sale Assets Held for Sale	3 Months Ended
	Mar. 31, 2017
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Assets Held for Sale	Note 5. Assets Held for Sale In January 2017, the Company formally approved a plan to sell land and buildings located in Miami, Florida. The decision to sell these assets was largely based upon changes in local operational requirements and the Company's intended use of the property. The net book value of the property assets is $80 million , and is reported within the United States segment. In May 2017, the Company entered into an agreement for the sale. The Company expects the sale to close in the second or third quarter of 2017 at a selling price which, after selling costs, will exceed the net book value. As of March 31, 2017 , these assets are being reported as held for sale and are classified in other current assets.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	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: March 31, 2017 December 31, 2016 Cost Fair Value Cost Fair Value Cash and Cash Equivalents: Cash and overnight deposits $ 424,861 424,861 406,787 406,787 Corporate commercial paper 669,046 669,287 507,777 507,889 Time deposits 62,136 62,136 59,871 59,871 Total cash and cash equivalents $ 1,156,043 1,156,284 974,435 974,547 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	3 Months Ended
	Mar. 31, 2017
Loss Contingency [Abstract]
Contingencies	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 March 31, 2017 , 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	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Business Segment Information	Business Segment Information The Company is organized functionally in geographic operating segments. Accordingly, management focuses its attention on revenues, net revenues 1 , operating income, identifiable assets, capital expenditures, depreciation and amortization 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: (in thousands) UNITED STATES OTHER NORTH AMERICA LATIN AMERICA NORTH ASIA SOUTH ASIA EUROPE MIDDLE EAST, AFRICA AND INDIA ELIMI- NATIONS CONSOLI- DATED Three months ended March 31, 2017: Revenues from unaffiliated customers $ 426,019 59,899 22,103 566,428 147,240 231,457 91,986 — 1,545,132 Transfers between geographic areas 24,313 2,639 3,635 5,051 5,431 9,322 4,964 (55,355 ) — Total revenues $ 450,332 62,538 25,738 571,479 152,671 240,779 96,950 (55,355 ) 1,545,132 Net revenues 1 $ 230,785 25,793 14,916 111,833 37,995 75,958 29,731 594 527,605 Operating income $ 52,346 5,051 3,451 53,352 13,224 11,646 7,043 1 146,114 Identifiable assets at period end $ 1,536,520 106,068 50,344 514,509 122,765 379,853 188,098 4,562 2,902,719 Capital expenditures $ 5,242 234 255 1,240 373 5,078 339 — 12,761 Depreciation and amortization $ 7,753 372 320 1,320 531 1,171 460 — 11,927 Equity $ 1,192,601 51,812 27,248 371,152 105,726 118,211 119,627 (34,657 ) 1,951,720 Three months ended March 31, 2016: Revenues from unaffiliated customers $ 407,826 52,106 20,064 497,232 136,418 221,897 82,929 — 1,418,472 Transfers between geographic areas 26,034 2,700 3,601 5,096 5,806 10,361 5,394 (58,992 ) — Total revenues $ 433,860 54,806 23,665 502,328 142,224 232,258 88,323 (58,992 ) 1,418,472 Net revenues 1 $ 220,698 27,378 13,733 110,791 39,518 74,541 30,407 3 517,069 Operating income $ 48,205 7,291 3,852 55,218 15,691 12,253 9,313 3 151,826 Identifiable assets at period end $ 1,236,896 119,258 56,334 455,973 133,940 438,711 216,576 3,852 2,661,540 Capital expenditures $ 8,137 311 485 1,085 655 2,119 1,243 — 14,035 Depreciation and amortization $ 7,332 364 253 1,319 512 1,098 451 — 11,329 Equity $ 978,426 79,312 37,325 300,188 115,606 167,726 137,112 (33,184 ) 1,782,511 1 Net revenues are a non-GAAP measure calculated as revenues less directly related operating expenses attributable to the Company's principal services. The Company's management believes that net revenues are a better measure than total revenues when evaluating the Company's operating segment performance since total revenues earned as a freight consolidator include the carriers' charges for carrying the shipment, whereas revenues earned in other capacities include primarily the commissions and fees earned by the Company. Net revenue is one of the Company's primary operational and financial measures and demonstrates the Company's ability to concentrate and leverage purchasing power through effective consolidation of shipments from customers utilizing a variety of transportation carriers and optimal routings. The following table presents the calculation of consolidated net revenues: Three months ended March 31, 2017 2016 Total revenues $ 1,545,132 $ 1,418,472 Expenses: Airfreight services 443,404 388,777 Ocean freight and ocean services 366,063 323,020 Customs brokerage and other services 208,060 189,606 Net revenues $ 527,605 $ 517,069

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
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 to 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 23, 2017. 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.
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 its customers to pay deteriorates. The Company has recorded an allowance for doubtful accounts in the amounts of $9,911 as of March 31, 2017 and $9,247 as of December 31, 2016 . 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 disclosure 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 which the Company has self-insured, accrual of various tax liabilities, accrual of loss contingencies and calculation of share-based compensation expense. Actual results could differ from those estimates.
New Accounting Pronouncements, Policy	Beginning on January 1, 2017, the Company adopted accounting guidance requiring that, prospectively, excess tax benefits and deficiencies be recorded in income tax expense for stock option exercises, cancellations and disqualifying dispositions of employee stock purchase plan shares. Also, the Company has elected to continue to estimate forfeitures expected to occur in determining compensation cost to be recognized in each period.
Stock Plans, Policy	The Company recognizes stock compensation expense based on an estimate of the fair value of awards granted to employees and directors under the Company’s 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 stock awards' vesting periods as salaries and related costs.
Cash Equivalents, Policy	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, net revenues 1 , operating income, identifiable assets, capital expenditures, depreciation and amortization 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.

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Share-based Compensation [Abstract]
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	Total stock compensation expense and the total related tax benefit recognized are as follows: Three months ended March 31, 2017 2016 Stock compensation expense $ 10,623 $ 10,831 Recognized tax benefit $ 2,213 $ 1,730

Basic and Diluted Earnings pe18

Basic and Diluted Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, (Amounts in thousands, except per share amounts) Net earnings attributable to shareholders Weighted average shares Earnings per share 2017 Basic earnings attributable to shareholders $ 93,264 180,062 $ 0.52 Effect of dilutive potential common shares — 2,032 — Diluted earnings attributable to shareholders $ 93,264 182,094 $ 0.51 2016 Basic earnings attributable to shareholders $ 96,584 182,010 $ 0.53 Effect of dilutive potential common shares — 1,008 — Diluted earnings attributable to shareholders $ 96,584 183,018 $ 0.53
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following potential common shares have been excluded from the computation of diluted earnings per share because the effect would have been antidilutive: Three months ended March 31, 2017 2016 Shares 3,751 9,414

Components of Equity (Tables)

Components of Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
Schedule of Components of Equity Disclosure	The components of equity for the three months ended March 31, 2017 and 2016 are as follows: Shareholders’ equity Noncontrolling interest Total equity Balance at December 31, 2016 $ 1,844,638 2,575 1,847,213 Exercise of stock options 45,365 — 45,365 Shares repurchased under provisions of stock repurchase plans (53,908 ) — (53,908 ) Stock compensation expense 10,623 — 10,623 Net earnings 93,264 303 93,567 Other comprehensive income (loss) 8,914 (54 ) 8,860 Balance at March 31, 2017 $ 1,948,896 2,824 1,951,720 Balance at December 31, 2015 $ 1,691,993 2,683 1,694,676 Exercise of stock options 41,635 — 41,635 Shares repurchased under provisions of stock repurchase plans (70,292 ) — (70,292 ) Stock compensation expense 10,831 — 10,831 Tax benefits from stock plans, net (966 ) — (966 ) Net earnings 96,584 463 97,047 Other comprehensive income 9,466 114 9,580 Balance at March 31, 2016 $ 1,779,251 3,260 1,782,511

Fair Value of Financial Instr20

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
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: March 31, 2017 December 31, 2016 Cost Fair Value Cost Fair Value Cash and Cash Equivalents: Cash and overnight deposits $ 424,861 424,861 406,787 406,787 Corporate commercial paper 669,046 669,287 507,777 507,889 Time deposits 62,136 62,136 59,871 59,871 Total cash and cash equivalents $ 1,156,043 1,156,284 974,435 974,547

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Financial information regarding the Company’s operations by geographic area is as follows: (in thousands) UNITED STATES OTHER NORTH AMERICA LATIN AMERICA NORTH ASIA SOUTH ASIA EUROPE MIDDLE EAST, AFRICA AND INDIA ELIMI- NATIONS CONSOLI- DATED Three months ended March 31, 2017: Revenues from unaffiliated customers $ 426,019 59,899 22,103 566,428 147,240 231,457 91,986 — 1,545,132 Transfers between geographic areas 24,313 2,639 3,635 5,051 5,431 9,322 4,964 (55,355 ) — Total revenues $ 450,332 62,538 25,738 571,479 152,671 240,779 96,950 (55,355 ) 1,545,132 Net revenues 1 $ 230,785 25,793 14,916 111,833 37,995 75,958 29,731 594 527,605 Operating income $ 52,346 5,051 3,451 53,352 13,224 11,646 7,043 1 146,114 Identifiable assets at period end $ 1,536,520 106,068 50,344 514,509 122,765 379,853 188,098 4,562 2,902,719 Capital expenditures $ 5,242 234 255 1,240 373 5,078 339 — 12,761 Depreciation and amortization $ 7,753 372 320 1,320 531 1,171 460 — 11,927 Equity $ 1,192,601 51,812 27,248 371,152 105,726 118,211 119,627 (34,657 ) 1,951,720 Three months ended March 31, 2016: Revenues from unaffiliated customers $ 407,826 52,106 20,064 497,232 136,418 221,897 82,929 — 1,418,472 Transfers between geographic areas 26,034 2,700 3,601 5,096 5,806 10,361 5,394 (58,992 ) — Total revenues $ 433,860 54,806 23,665 502,328 142,224 232,258 88,323 (58,992 ) 1,418,472 Net revenues 1 $ 220,698 27,378 13,733 110,791 39,518 74,541 30,407 3 517,069 Operating income $ 48,205 7,291 3,852 55,218 15,691 12,253 9,313 3 151,826 Identifiable assets at period end $ 1,236,896 119,258 56,334 455,973 133,940 438,711 216,576 3,852 2,661,540 Capital expenditures $ 8,137 311 485 1,085 655 2,119 1,243 — 14,035 Depreciation and amortization $ 7,332 364 253 1,319 512 1,098 451 — 11,329 Equity $ 978,426 79,312 37,325 300,188 115,606 167,726 137,112 (33,184 ) 1,782,511
Schedule of Net Revenues Calculation	The following table presents the calculation of consolidated net revenues: Three months ended March 31, 2017 2016 Total revenues $ 1,545,132 $ 1,418,472 Expenses: Airfreight services 443,404 388,777 Ocean freight and ocean services 366,063 323,020 Customs brokerage and other services 208,060 189,606 Net revenues $ 527,605 $ 517,069

Summary of Significant Accoun22

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 9,911	$ 9,247

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	May 02, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0	0
Issuance of shares under stock purchase plan	0	0
Subsequent Event | Omnibus Incentive Plan 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			2,500,000

Share-Based Compensation - Stoc

Share-Based Compensation - Stock Compensation Expense and Total Related Tax Benefit Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock compensation expense	$ 10,623	$ 10,831
Recognized tax benefit	$ 2,213	$ 1,730

Basic and Diluted Earnings pe25

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
	Mar. 31, 2017	Mar. 31, 2016
Net Earnings Attributable to Shareholders
Basic earnings attributable to shareholders	$ 93,264	$ 96,584
Diluted earnings attributable to shareholders	$ 93,264	$ 96,584
Weighted Average Shares
Weighted average basic shares outstanding	180,062	182,010
Effect of dilutive potential common shares	2,032	1,008
Weighted average diluted shares outstanding	182,094	183,018
Earnings Per Share
Basic earnings attributable to shareholders per share	$ 0.52	$ 0.53
Diluted earnings attributable to shareholders per share	$ 0.51	$ 0.53

Basic and Diluted Earnings pe26

Basic and Diluted Earnings per Share - Shares Excluded from Computation of Diluted earnings Per Share (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Shares	3,751	9,414

Components of Equity (Detail)

Components of Equity (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ 1,847,213	$ 1,694,676
Exercise of stock options	45,365	41,635
Shares repurchased under provisions of stock repurchase plans	(53,908)	(70,292)
Stock compensation expense	10,623	10,831
Tax (deficiency) benefit from stock plans, net		(966)
Net earnings	93,567	97,047
Other comprehensive loss	8,860	9,580
Ending Balance	1,951,720	1,782,511
Shareholders' Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	1,844,638	1,691,993
Exercise of stock options	45,365	41,635
Shares repurchased under provisions of stock repurchase plans	(53,908)	(70,292)
Stock compensation expense	10,623	10,831
Tax (deficiency) benefit from stock plans, net		(966)
Net earnings	93,264	96,584
Other comprehensive loss	8,914	9,466
Ending Balance	1,948,896	1,779,251
Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	2,575	2,683
Net earnings	303	463
Other comprehensive loss	(54)	114
Ending Balance	$ 2,824	$ 3,260

Components Of Equity - Addition

Components Of Equity - Additional Information (Detail) - $ / shares shares in Thousands	May 02, 2017	Mar. 31, 2017	Mar. 31, 2016
Non-Discretionary Plan
Class of Stock [Line Items]
Shares repurchased		954	423
Average price per share		$ 56.49	$ 47.60
Discretionary Plan
Class of Stock [Line Items]
Shares repurchased		0	1,048
Average price per share			$ 47.87
Expected common stock shares issued and outstanding		170,000
Subsequent Event
Class of Stock [Line Items]
Date of declaration of dividends	May 2, 2017
Dividend declared per share	$ 0.42
Date of dividend payment	Jun. 15, 2017
Dividends payable to shareholders date of record	Jun. 1, 2017

Assets Held for Sale Assets H29

Assets Held for Sale Assets Held for Sale (Detail) $ in Millions	Mar. 31, 2017USD ($)
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Assets Held for Sale, Net Book Value, Current	$ 80

Fair Value of Financial Instr30

Fair Value of Financial Instruments - Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	$ 1,156,043	$ 974,435	$ 1,013,917	$ 807,796
Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	1,156,043	974,435
Cash and Cash Equivalents | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and overnight deposits	424,861	406,787
Corporate commercial paper	669,046	507,777
Time deposits	62,136	59,871
Cash and Cash Equivalents | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and overnight deposits	424,861	406,787
Corporate commercial paper	669,287	507,889
Time deposits	62,136	59,871
Total cash and cash equivalents	$ 1,156,284	$ 974,547

Business Segment Information -

Business Segment Information - Financial Information Regarding Company's Operations by Geographic Area (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Total revenues		$ 1,545,132	$ 1,418,472
Net revenues	[1]	527,605	517,069
Operating income		146,114	151,826
Identifiable assets at period end		2,902,719	2,661,540	$ 2,790,871
Capital expenditures		12,761	14,035
Depreciation and amortization		11,927	11,329
Equity		1,951,720	1,782,511	$ 1,847,213	$ 1,694,676
United States Segment
Segment Reporting Information [Line Items]
Total revenues		426,019	407,826
Other North America Segment
Segment Reporting Information [Line Items]
Total revenues		59,899	52,106
Latin America Segment
Segment Reporting Information [Line Items]
Total revenues		22,103	20,064
North Asia Segment
Segment Reporting Information [Line Items]
Total revenues		566,428	497,232
South Asia Segment
Segment Reporting Information [Line Items]
Total revenues		147,240	136,418
Europe Segment
Segment Reporting Information [Line Items]
Total revenues		231,457	221,897
Middle East Africa And India Segment
Segment Reporting Information [Line Items]
Total revenues		91,986	82,929
Geography Eliminations | United States Segment
Segment Reporting Information [Line Items]
Total revenues		24,313	26,034
Geography Eliminations | Other North America Segment
Segment Reporting Information [Line Items]
Total revenues		2,639	2,700
Geography Eliminations | Latin America Segment
Segment Reporting Information [Line Items]
Total revenues		3,635	3,601
Geography Eliminations | North Asia Segment
Segment Reporting Information [Line Items]
Total revenues		5,051	5,096
Geography Eliminations | South Asia Segment
Segment Reporting Information [Line Items]
Total revenues		5,431	5,806
Geography Eliminations | Europe Segment
Segment Reporting Information [Line Items]
Total revenues		9,322	10,361
Geography Eliminations | Middle East Africa And India Segment
Segment Reporting Information [Line Items]
Total revenues		4,964	5,394
Operating Segments | United States Segment
Segment Reporting Information [Line Items]
Total revenues		450,332	433,860
Net revenues	[1]	230,785	220,698
Operating income		52,346	48,205
Identifiable assets at period end		1,536,520	1,236,896
Capital expenditures		5,242	8,137
Depreciation and amortization		7,753	7,332
Equity		1,192,601	978,426
Operating Segments | Other North America Segment
Segment Reporting Information [Line Items]
Total revenues		62,538	54,806
Net revenues	[1]	25,793	27,378
Operating income		5,051	7,291
Identifiable assets at period end		106,068	119,258
Capital expenditures		234	311
Depreciation and amortization		372	364
Equity		51,812	79,312
Operating Segments | Latin America Segment
Segment Reporting Information [Line Items]
Total revenues		25,738	23,665
Net revenues	[1]	14,916	13,733
Operating income		3,451	3,852
Identifiable assets at period end		50,344	56,334
Capital expenditures		255	485
Depreciation and amortization		320	253
Equity		27,248	37,325
Operating Segments | North Asia Segment
Segment Reporting Information [Line Items]
Total revenues		571,479	502,328
Net revenues	[1]	111,833	110,791
Operating income		53,352	55,218
Identifiable assets at period end		514,509	455,973
Capital expenditures		1,240	1,085
Depreciation and amortization		1,320	1,319
Equity		371,152	300,188
Operating Segments | South Asia Segment
Segment Reporting Information [Line Items]
Total revenues		152,671	142,224
Net revenues	[1]	37,995	39,518
Operating income		13,224	15,691
Identifiable assets at period end		122,765	133,940
Capital expenditures		373	655
Depreciation and amortization		531	512
Equity		105,726	115,606
Operating Segments | Europe Segment
Segment Reporting Information [Line Items]
Total revenues		240,779	232,258
Net revenues	[1]	75,958	74,541
Operating income		11,646	12,253
Identifiable assets at period end		379,853	438,711
Capital expenditures		5,078	2,119
Depreciation and amortization		1,171	1,098
Equity		118,211	167,726
Operating Segments | Middle East Africa And India Segment
Segment Reporting Information [Line Items]
Total revenues		96,950	88,323
Net revenues	[1]	29,731	30,407
Operating income		7,043	9,313
Identifiable assets at period end		188,098	216,576
Capital expenditures		339	1,243
Depreciation and amortization		460	451
Equity		119,627	137,112
Intersegment Eliminations
Segment Reporting Information [Line Items]
Total revenues		(55,355)	(58,992)
Net revenues	[1]	594	3
Operating income		1	3
Identifiable assets at period end		4,562	3,852
Equity		$ (34,657)	$ (33,184)
[1]	Net revenues are a non-GAAP measure calculated as revenues less directly related operating expenses attributable to the Company's principal services. The Company's management believes that net revenues are a better measure than total revenues when evaluating the Company's operating segment performance since total revenues earned as a freight consolidator include the carriers' charges for carrying the shipment, whereas revenues earned in other capacities include primarily the commissions and fees earned by the Company. Net revenue is one of the Company's primary operational and financial measures and demonstrates the Company's ability to concentrate and leverage purchasing power through effective consolidation of shipments from customers utilizing a variety of transportation carriers and optimal routings.

Business Segment Information 32

Business Segment Information - Net Revenues Calculation (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Segment Reporting [Abstract]
Total revenues		$ 1,545,132	$ 1,418,472
Expenses [Abstract]
Airfreight services		443,404	388,777
Ocean freight and ocean services		366,063	323,020
Customs brokerage and other services		208,060	189,606
Net revenues	[1]	$ 527,605	$ 517,069
[1]	Net revenues are a non-GAAP measure calculated as revenues less directly related operating expenses attributable to the Company's principal services. The Company's management believes that net revenues are a better measure than total revenues when evaluating the Company's operating segment performance since total revenues earned as a freight consolidator include the carriers' charges for carrying the shipment, whereas revenues earned in other capacities include primarily the commissions and fees earned by the Company. Net revenue is one of the Company's primary operational and financial measures and demonstrates the Company's ability to concentrate and leverage purchasing power through effective consolidation of shipments from customers utilizing a variety of transportation carriers and optimal routings.