Expeditors International of Washington (EXPD) 10-K 26 Feb 10 2009 FY Annual report Financial data

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Thousands	Dec. 31, 2009	Dec. 31, 2008
Current Assets:
Cash and cash equivalents	$925,929	$741,028
Short-term investments	655	658
Accounts receivable, less allowance for doubtful accounts of $14,235 in 2009 and $14,414 in 2008	810,369	788,176
Deferred Federal and state income taxes	8,338	7,986
Other	42,539	35,511
Total current assets	1,787,830	1,573,359
Property and Equipment:
Land	165,528	160,293
Buildings and leasehold improvements	372,470	351,022
Furniture, fixtures, equipment and purchased software	205,817	193,810
Construction in progress	16,258	16,029
Property and equipment, at cost	760,073	721,154
Less accumulated depreciation and amortization	264,372	228,025
Property and equipment, net	495,701	493,129
Goodwill, net	7,927	7,927
Other intangibles, net	4,938	6,503
Other assets, net	27,326	19,921
Total assets	2,323,722	2,100,839
Current Liabilities:
Accounts payable	546,675	491,823
Accrued expenses, primarily salaries and related costs	145,545	150,487
Federal, state, and foreign income taxes	16,166	28,039
Total current liabilities	708,386	670,349
Deferred Federal and state income taxes	53,989	46,574
Shareholders' Equity:
Preferred stock, par value $.01 per share Authorized 2,000,000 shares; none issued	0	0
Common stock, par value $.01 per share Authorized 320,000,000 shares; issued and outstanding 212,025,494 shares at December 31, 2009 and 211,973,377 shares at December 31, 2008	2,120	2,120
Additional paid-in capital	18,265	7,150
Retained earnings	1,532,018	1,372,356
Accumulated other comprehensive income (loss)	604	(15,208)
Total shareholders' equity	1,553,007	1,366,418
Noncontrolling interest	8,340	17,498
Total equity	1,561,347	1,383,916
Total liabilities and equity	$2,323,722	$2,100,839

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data	Dec. 31, 2009	Dec. 31, 2008
Accounts receivable, allowance for doubtful accounts	$14,235	$14,414
Preferred stock, par value	0.01	0.01
Preferred stock, Authorized	2,000,000	2,000,000
Preferred stock, issued	0	0
Common stock, par value	0.01	0.01
Common stock, Authorized	320,000,000	320,000,000
Common stock, issued	212,025,494	211,973,377
Common stock, outstanding	212,025,494	211,973,377

Consolidated Statements of Earn

Consolidated Statements of Earnings (USD $)
In Thousands, except Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues:
Airfreight services	$1,831,317	$2,541,377	$2,407,582
Ocean freight and ocean services	1,297,685	1,990,983	1,820,558
Customs brokerage and other services	963,281	1,101,518	1,007,031
Total revenues	4,092,283	5,633,878	5,235,171
Operating Expenses:
Airfreight consolidation	1,341,842	1,962,621	1,879,434
Ocean freight consolidation	973,462	1,596,346	1,473,942
Customs brokerage and other services	394,193	471,650	428,834
Salaries and related costs	774,214	863,846	791,879
Rent and occupancy costs	74,324	76,984	67,676
Depreciation and amortization	40,035	40,003	39,303
Selling and promotion	26,295	37,778	38,735
Other	82,917	111,514	91,968
Total operating expenses	3,707,282	5,160,742	4,811,771
Operating income	385,001	473,136	423,400
Other Income (Expense):
Interest income	10,177	21,077	22,341
Interest expense	(499)	(183)	45
Other, net	8,193	5,542	3,887
Other income, net	17,871	26,436	26,273
Earnings before income taxes	402,872	499,572	449,673
Income tax expense	162,475	196,593	179,815
Net earnings	240,397	302,979	269,858
Less: net earnings attributable to noncontrolling interest	180	1,965	704
Net earnings attributable to shareholders	$240,217	$301,014	$269,154
Diluted earnings attributable to shareholders per share	1.11	1.37	1.21
Basic earnings attributable to shareholders per share	1.13	1.41	1.26
Dividends declared and paid per common share	0.38	0.32	0.28
Weighted average diluted shares outstanding	216,533,240	219,170,003	221,799,868
Weighted average basic shares outstanding	212,112,744	212,755,946	213,314,761

Consolidated Statements of Equi

Consolidated Statements of Equity and Comprehensive Income (USD $)
In Thousands, except Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Beginning Balance (in shares)	211,973,377
Beginning Balance	$1,383,916	$1,243,319	$1,085,907
Exercise of stock options and release of restricted shares	26,413
Exercise of stock options		29,344	43,178
Issuance of shares under stock purchase plan	20,512	22,116	21,807
Shares repurchased under provisions of stock repurchase plans	(84,509)	(154,178)	(207,584)
Stock compensation expense	39,135	44,879	44,917
Tax benefits from stock plans	5,726	10,954	28,105
Purchase of noncontrolling interest	(468)
Comprehensive income
Net earnings	240,397	302,979	269,858
Unrealized gains on securities, net of tax of $28			44
Reclassification adjustment for realized gain, net of tax of $286			(443)
Foreign currency translation adjustments, net of tax of $8,672 in 2009, $25,018 in 2008 and $9,264 in 2007	15,178	(46,515)	17,594
Total comprehensive income	255,575	256,464	287,053
Dividends paid ($.38 in 2009, $.32 in 2008 and $.28 in 2007 per share)	(80,555)	(68,103)	(59,748)
Distributions or declaration of dividends to noncontrolling interest	(4,398)	(879)	(316)
Ending Balance (in shares)	212,025,494	211,973,377
Ending Balance	1,561,347	1,383,916	1,243,319
Common stock
Beginning Balance (in shares)	211,973,377	212,996,776	213,080,466
Beginning Balance	2,120	2,130	2,131
Exercise of stock options and release of restricted shares (in shares)	2,068,603
Exercise of stock options and release of restricted shares	20
Exercise of stock options (in shares)		2,140,819	3,978,908
Exercise of stock options		22	40
Issuance of shares under stock purchase plan (in shares)	714,799	732,719	632,548
Issuance of shares under stock purchase plan	7	7	6
Shares repurchased under provisions of stock repurchase plans (in shares)	(2,731,285)	(3,896,937)	(4,695,146)
Shares repurchased under provisions of stock repurchase plans	(27)	(39)	(47)
Comprehensive income
Ending Balance (in shares)	212,025,494	211,973,377	212,996,776
Ending Balance	2,120	2,120	2,130
Additional paid-in capital
Beginning Balance	7,150	50,006	119,582
Exercise of stock options and release of restricted shares	26,393
Exercise of stock options		29,322	43,138
Issuance of shares under stock purchase plan	20,505	22,109	21,801
Shares repurchased under provisions of stock repurchase plans	(84,482)	(150,120)	(207,537)
Stock compensation expense	39,135	44,879	44,917
Tax benefits from stock plans	5,726	10,954	28,105
Purchase of noncontrolling interest	3,838
Comprehensive income
Ending Balance	18,265	7,150	50,006
Retained earnings
Beginning Balance	1,372,356	1,143,464	934,058
Shares repurchased under provisions of stock repurchase plans		(4,019)
Comprehensive income
Net earnings	240,217	301,014	269,154
Dividends paid ($.38 in 2009, $.32 in 2008 and $.28 in 2007 per share)	(80,555)	(68,103)	(59,748)
Ending Balance	1,532,018	1,372,356	1,143,464
Accumulated other comprehensive income (loss)
Beginning Balance	(15,208)	30,971	14,320
Comprehensive income
Unrealized gains on securities, net of tax of $28			44
Reclassification adjustment for realized gain, net of tax of $286			(443)
Foreign currency translation adjustments, net of tax of $8,672 in 2009, $25,018 in 2008 and $9,264 in 2007	15,812	(46,179)	17,050
Ending Balance	604	(15,208)	30,971
Total shareholders' equity
Beginning Balance	1,366,418	1,226,571	1,070,091
Exercise of stock options and release of restricted shares	26,413
Exercise of stock options		29,344	43,178
Issuance of shares under stock purchase plan	20,512	22,116	21,807
Shares repurchased under provisions of stock repurchase plans	(84,509)	(154,178)	(207,584)
Stock compensation expense	39,135	44,879	44,917
Tax benefits from stock plans	5,726	10,954	28,105
Purchase of noncontrolling interest	3,838
Comprehensive income
Net earnings	240,217	301,014	269,154
Unrealized gains on securities, net of tax of $28			44
Reclassification adjustment for realized gain, net of tax of $286			(443)
Foreign currency translation adjustments, net of tax of $8,672 in 2009, $25,018 in 2008 and $9,264 in 2007	15,812	(46,179)	17,050
Total comprehensive income	256,029	254,835	285,805
Dividends paid ($.38 in 2009, $.32 in 2008 and $.28 in 2007 per share)	(80,555)	(68,103)	(59,748)
Ending Balance	1,553,007	1,366,418	1,226,571
Noncontrolling interest
Beginning Balance	17,498	16,748	15,816
Purchase of noncontrolling interest	(4,306)
Comprehensive income
Net earnings	180	1,965	704
Foreign currency translation adjustments, net of tax of $8,672 in 2009, $25,018 in 2008 and $9,264 in 2007	(634)	(336)	544
Total comprehensive income	(454)	1,629	1,248
Distributions or declaration of dividends to noncontrolling interest	(4,398)	(879)	(316)
Ending Balance	$8,340	$17,498	$16,748

1_Consolidated Statements of Eq

Consolidated Statements of Equity and Comprehensive Income (Parenthetical) (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Unrealized gains on securities, tax			$28
Reclassification adjustment for realized gain, tax			286
Foreign currency translation adjustments, tax	$8,672	$25,018	$9,264
Dividends paid, per share	0.38	0.32	0.28

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating Activities:
Net earnings	$240,397	$302,979	$269,858
Adjustments to reconcile net earnings to net cash provided by operating activities:
Provision for losses on accounts receivable	804	1,976	940
Deferred income tax (benefit) expense	(1,609)	16,350	18,991
Excess tax benefits from stock plans	(5,726)	(10,954)	(28,105)
Stock compensation expense	39,135	44,879	44,917
Depreciation and amortization	40,035	40,003	39,303
Gain on sale of assets	(42)	(699)	(1,053)
Amortization of other intangible assets	1,520	1,618	1,483
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(1,077)	85,841	(84,950)
Increase (decrease) in accounts payable and accrued expenses	29,910	(66,470)	46,881
(Increase) decrease in income taxes payable, net	(12,706)	(5,552)	4,673
Other	159	(1,005)	(353)
Net cash provided by operating activities	330,800	408,966	312,585
Investing Activities:
Decrease (increase) in short-term investments	26	(72)	(10)
Purchase of property and equipment	(34,700)	(59,726)	(82,786)
Proceeds from sale of property and equipment	276	369	504
Prepayment on long-term land lease, net	(5,049)	0	(2,820)
Other	(1,901)	204	(2,859)
Net cash used in investing activities	(41,348)	(59,225)	(87,971)
Financing Activities:
Proceeds from issuance of common stock	46,925	51,460	64,985
Repurchases of common stock	(84,509)	(154,178)	(207,584)
Excess tax benefits from stock plans	5,726	10,954	28,105
Dividends paid	(80,555)	(68,103)	(59,748)
Distributions to noncontrolling interest	(1,084)	(879)	(316)
Purchase of noncontrolling interest	(3,851)	0	0
Net cash used in financing activities	(117,348)	(160,746)	(174,558)
Effect of exchange rate changes on cash and cash equivalents	12,797	(22,566)	13,185
Increase in cash and cash equivalents	184,901	166,429	63,241
Cash and cash equivalents at beginning of year	741,028	574,599	511,358
Cash and cash equivalents at end of year	925,929	741,028	574,599
Interest and Taxes Paid:
Interest	497	173	83
Income taxes	$158,745	$172,146	$146,353

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009 USD / shares
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, international service centers and exclusive or non-exclusive agents. The Companys customers include retailing and wholesaling, electronics, and manufacturing companies around the world. International trade is influenced by many factors, including economic and political conditions in the United States and abroad, currency exchange rates, and laws and policies relating to tariffs, trade restrictions, foreign investments and taxation.Periodically, governments consider a variety of changes to current tariffs and trade restrictions.The Company cannot predict which, if any, of these proposals may be adopted, nor can the Company predict the effects adoption of any such proposal will have on the Companys business.Doing business in foreign locations also subjects the Company to a variety of risks and considerations not normally encountered by domestic enterprises.In addition to being affected by governmental policies concerning international trade, the Companys business may also be affected by political developments and changes in government personnel or policies as well as economic turbulence or security concerns in the nations in which it does business. The consolidated financial statements include the accounts of the Company and its subsidiaries stated in U.S. dollars, the Companys reporting currency.In addition, the consolidated financial statements also include the accounts of operating entities where the Company maintains a parent-subsidiary relationship through unilateral control over assets and operations together with responsibility for payment of all liabilities, notwithstanding a lack of technical majority ownership of the subsidiary common stock. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain 2008 and 2007 amounts have been reclassified to conform with the 2009 presentation. Subsequent events have been evaluated through the date of issuance of these financial statements. All dollar amounts in the notes are presented in thousands except for share data. B. Cash Equivalents All highly liquid investments with a maturity of three months or less at date of purchase are considered to be cash equivalents. C. Short-term Investments Short-term investments have a maturity date of greater than three months at date of purchase and are designated as available-for-sale. Cost approximates market at December31, 2009 and 2008. D. Accounts Receivable The Company grants credit upon approval to customers. 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 accounts receivable allowances in the amounts of $14,235, $14,414 and $14,830 as

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY
	12 Months Ended Dec. 31, 2009 USD / shares
SHAREHOLDERS' EQUITY	NOTE 2. SHAREHOLDERS EQUITY A. Stock Repurchase Plans The Company has a Non-Discretionary Stock Repurchase Plan under which management is authorized to repurchase shares of the Companys common stock in the open market with the proceeds received from the exercise of employee and director stock options. On February9, 2009, the Plan was amended to increase the authorization to repurchase shares from 20,000,000 up to 40,000,000 shares. As of December31, 2009, the Company had repurchased and retired 19,634,439 shares of common stock at an average price of $18.60 per share over the period from 1994 through 2009. In November 2001, the Board of Directors expanded the Companys Discretionary Stock Repurchase Plan to allow for the repurchase of such shares as may be necessary to reduce the issued and outstanding stock to 200,000,000 shares of common stock. As of December31, 2009, the Company had repurchased and retired 16,848,598 shares of common stock at an average price of $32.21 per share over the period from 2001 through 2009. B. Stock Option Plans At December31, 2009, the Company has two stock option plans (the 1985 Plan and the 2009 Plan) under which the Board of Directors may grant officers and key employees options to purchase common stock at prices equal to or greater than market value on the date of grant. On May6, 2009, the shareholders approved the Companys 2009 Plan, which made available a total of 3,000,000 shares of the Companys common stock for purchase upon exercise of options granted under the 2009 Plan. The 1985 Plan provides for non-qualified grants. The 2009 Plan provides for qualified and non-qualified grants. Grants under the 2009 Plan are limited to not more than 100,000 shares per person. No additional shares can be granted under the 2009 Plan after April30, 2010. Outstanding options generally vest and become exercisable over periods up to five years from the date of grant and expire no more than 10 years from the date of grant. Upon the exercise of non-qualified stock options and disqualifying dispositions of incentive stock options, the Company derives a tax deduction measured by the excess of the market value over the option price at the date of disqualifying disposition. The portion of the benefit from the deduction which equals the estimated fair value of the options (previously recognized as compensation expense) is recorded as a credit to the deferred tax asset for non-qualified stock options and is recorded as a credit to current tax expense for any disqualified dispositions of incentive stock options. All of the tax benefit received upon option exercise for the tax deduction in excess of the estimated fair value of the options is credited to additional paid-in capital. The following table summarizes by plan stock option activity and shares available for granting of options: 1985Plan 2006Plan 2007Plan 2008Plan 2009Plan Directors Plan Balance at December31, 2006 6,912 79,690 128,000 Options authorized 3,000,000 Options granted (1,803,260 ) (128,000 ) Options not

BASIC AND DILUTED EARNINGS PER

BASIC AND DILUTED EARNINGS PER SHARE
	12 Months Ended Dec. 31, 2009 USD / shares
BASIC AND DILUTED EARNINGS PER SHARE	NOTE 3. 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 per share. Netearnings attributableto shareholders Weighted average shares Earnings pershare 2009 Basic earnings attributable to shareholders $ 240,217 212,112,744 $ 1.13 Effect of dilutive potential common shares 4,420,496 Diluted earnings attributable to shareholders $ 240,217 216,533,240 $ 1.11 Netearnings attributableto shareholders Weighted average shares Earnings pershare 2008 Basic earnings attributable to shareholders $ 301,014 212,755,946 $ 1.41 Effect of dilutive potential common shares 6,414,057 Diluted earnings attributable to shareholders $ 301,014 219,170,003 $ 1.37 2007 Basic earnings attributable to shareholders $ 269,154 213,314,761 $ 1.26 Effect of dilutive potential common shares 8,485,107 Diluted earnings attributable to shareholders $ 269,154 221,799,868 $ 1.21 The following shares have been excluded from the computation of diluted earnings per share because the effect would have been antidilutive: Years ended December31, 2009 2008 2007 Shares 8,698,730 6,604,623 4,760,520

INCOME TAXES

INCOME TAXES
	12 Months Ended Dec. 31, 2009 USD / shares
INCOME TAXES	NOTE 4. INCOME TAXES Income tax expense includes the following components: Federal State Foreign Total 2009 Current $ 62,865 10,908 90,311 164,084 Deferred (1,388 ) (221 ) (1,609 ) $ 61,477 10,687 90,311 162,475 2008 Current $ 65,867 12,489 101,887 180,243 Deferred 15,996 354 16,350 $ 81,863 12,843 101,887 196,593 2007 Current $ 65,799 9,825 85,200 160,824 Deferred 18,274 717 18,991 $ 84,073 10,542 85,200 179,815 Income tax expense differs from amounts computed by applying the United States Federal income tax rate of 35% to earnings before income taxes as a result of the following: 2009 2008 2007 Computed expected tax expense $ 141,005 174,850 157,386 Increase in income taxes resulting from: State income taxes, net of Federal income tax benefit 6,947 8,347 6,852 Nondeductible stock compensation expense, net 11,586 12,768 11,856 Other, net 2,937 628 3,721 $ 162,475 196,593 179,815 The components of earnings before income taxes are as follows: 2009 2008 2007 United States $ 117,889 126,659 117,447 Foreign 284,983 372,913 332,226 $ 402,872 499,572 449,673 The tax effects of temporary differences and tax credits that give rise to significant portions of deferred tax assets and deferred tax liabilities at December31, 2009 and 2008 are as follows: Years ended December31, 2009 2008 Deferred Tax Assets: Accrued third party charges, deductible for taxes upon economic performance (i.e. actual payment) $ 4,853 4,406 Provision for doubtful accounts receivable 2,301 2,270 Excess of financial statement over tax depreciation 7,550 6,912 Foreign currency translation adjustment 8,341 Retained liability for cargo claims 1,286 764 Capital loss 598 623 Deductible stock compensation expense, net 9,870 11,208 Total gross deferred tax assets 26,458 34,524 Deferred Tax Liabilities: Unremitted foreign earnings, net of related foreign tax credits (71,675 ) (72,590 ) Foreign currency translation adjustment (331 ) Other (103 ) (522 ) Total gross deferred tax liabilities $(72,109) (73,112) Net deferred tax liabilities $ (45,651 ) (38,588 ) Current deferred tax assets $ (8,338 ) (7,986 ) Noncurrent deferred tax liabilities $ (53,989 ) (46,574 ) Based on managements review of the Companys tax positions, the Comp

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 5. FAIR VALUE OF FINANCIAL INSTRUMENTS The Companys financial instruments, other than cash, consist primarily of cash equivalents, short-term investments, accounts receivable, accounts payable and accrued expenses. The carrying value of these financial instruments approximates their fair value. Cash equivalents consist of highly liquid investments with a maturity of three months or less at date of purchase. Short term investments have a maturity of greater than three months at date of purchase. Cash, cash equivalents and short-term investments consist of the following: December31, 2009 December31, 2008 Cost Fair Value Cost Fair Value Cash and cash equivalents: Cash and overnight deposits $ 387,612 $ 387,612 $ 344,853 $ 344,853 Corporate commercial paper 489,557 489,626 317,230 317,796 Time deposits 48,760 48,760 78,945 78,945 Total cash and cash equivalents 925,929 925,998 741,028 741,594 Short-term investments: Time deposits 655 655 658 658 Total $ 926,584 $ 926,653 $ 741,686 $ 742,252 The fair value of corporate commercial paper is based on the use of market interest rates for identical or similar assets.

CREDIT ARRANGEMENTS

CREDIT ARRANGEMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
CREDIT ARRANGEMENTS	NOTE 6. CREDIT ARRANGEMENTS Certain of the Companys foreign subsidiaries maintain bank lines of credit for short-term working capital purposes.These credit lines are supported by standby letters of credit issued by a United States bank, or guarantees issued by the Company to the foreign banks issuing the credit line.Lines of credit totaling $25,839 and $22,284 at December31, 2009 and 2008, respectively, bear interest at rates up to 4% over the foreign banks equivalent prime rates.At December31, 2009, the Company had no amounts outstanding under these lines and was contingently liable for approximately $78,465 under outstanding standby letters of credit and guarantees. In addition, the Company maintains a bank facility with its U.K. bank for $11,366 which is available for issuances of standby letters of credit. The standby letters of credit and guarantees relate to obligations of the Companys foreign subsidiaries for credit extended in the ordinary course of business by direct carriers, primarily airlines, and for duty and tax deferrals available from governmental entities responsible for customs and value-added-tax (VAT) taxation.The total underlying amounts due and payable for transportation and governmental excises are properly recorded as obligations in the books of the respective foreign subsidiaries, and there would be no need to record additional expense in the unlikely event the parent company were to be required to perform. At December31, 2009, the Company was in compliance with all restrictive covenants of these credit lines and the associated credit facilities.

COMMITMENTS

COMMITMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
COMMITMENTS	NOTE 7. COMMITMENTS A. Leases The Company occupies office and warehouse facilities under terms of operating leases expiring up to 2020. The Company also has two long term leasing arrangements to use land, for which the usage rights were entirely prepaid in 2009 and 2007. Usage rights for those arrangements are recognized in rent expense over the lease terms up to 2057. Total rent expense for 2009, 2008 and 2007 was $52,581, $54,059 and $48,200, respectively. At December31, 2009, future minimum annual lease payments under all leases are as follows: 2010 $ 41,149 2011 28,422 2012 22,828 2013 17,354 2014 9,995 Thereafter 15,159 $ 134,907 B. Unconditional Purchase Obligations The Company enters into short-term agreements with asset-based providers reserving space on a guaranteed basis. The pricing of these obligations varies to some degree with market conditions. The Company only enters into agreements that management believes the Company can fulfill with relative ease. Historically, the Company has not paid for guaranteed space that it has not used. Management believes, in line with historical experience, committed purchase obligations outstanding as of December31, 2009 of $222,939, will be fulfilled during 2010 in the Companys ordinary course of business. C. Employee Benefits The Company has employee savings plans under which the Company provides a discretionary matching contribution. In 2009, 2008 and 2007, the Companys contributions under the plans were $6,100, $6,196, and $6,790, respectively.

CONTINGENCIES

CONTINGENCIES
	12 Months Ended Dec. 31, 2009 USD / shares
CONTINGENCIES	NOTE 8. CONTINGENCIES On October10, 2007, the U. S. Department of Justice (DOJ) issued a subpoena ordering the Company to produce certain information and records relating to an investigation of alleged anti-competitive behavior amongst air cargo freight forwarders. The Company has retained the services of a law firm to assist in complying with the DOJs subpoena. As part of this process, the Company has met with and continues to co-operate with the DOJ. The Company expects to incur additional costs during the course of this ongoing investigation, which could include fines and/or penalties if the DOJ concludes that the Company has engaged in anti-competitive behavior and such fines and/or penalties could have a material impact on the Companys financial position, results of operations and operating cash flows. On January3, 2008, the Company was named as a defendant, with seven other European and North American-based global logistics providers, in a Federal antitrust class action lawsuit filed in the United States District Court of the Eastern District of New York, Precision Associates, Inc. et al v. Panalpina World Transport, No.08-CV0042. On July21, 2009, the plaintiffs filed an amended complaint adding a number of new third party defendants and various claims which they assert to violate the Sherman Act. The plaintiffs amended complaint, which purports to be brought on behalf of a class of customers (and has not yet been certified), asserts claims that the defendants engaged in price fixing regarding eight discrete surcharges in violation of the Sherman Act. The allegations concerning the Company relate to two of these surcharges. The amended complaint seeks unspecified damages and injunctive relief. The Company believes that these allegations are without merit and intends to vigorously defend itself. On August13, 2009, the Company filed a motion to dismiss the amended complaint for failure to state a claim, which is currently pending before the Court. Plaintiffs filed their opposition to the Companys motion on January 30, 2010 and the motion is currently pending before the Court. On June18, 2008, the European Commission (EC) issued a request for information to the Companys UK subsidiary, Expeditors International (UK) Ltd., requesting certain information relating to an ongoing investigation of freight forwarders. The Company replied to the request. On February18, 2009, the EC issued another request for information to the same subsidiary requesting certain additional information in connection with the ECs ongoing investigation of freight forwarders. The Company replied to the request. On February10, 2010, the Company and its Hong Kong subsidiary, Expeditors Hong Kong Limited, received a Statement of Objections (SO) from the EC. The SO initiates a proceeding against the Company alleging possible anti-competitive behavior contrary to European Union rules on competition. Specific to the Company, the allegations in the SO are limited to the period from August 2005 to June 2006 and only concern airfreight trade lanes between South China/Hong Kong and the European Economic Area. The Company intends to vigorously defend itself against the all

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
BUSINESS SEGMENT INFORMATION	NOTE 9. BUSINESS SEGMENT INFORMATION Financial information regarding 2009, 2008 and 2007 operations by the Companys designated geographic areas are as follows: United States Other North America Latin America Asia Europeand Africa Middle East and India Australasia Elimi- nations Consoli- dated 2009 Revenues from unaffiliated customers $ 982,103 129,272 64,060 2,035,568 582,759 232,766 65,755 4,092,283 Transfers between geographic areas 75,964 7,344 13,520 16,624 27,699 14,602 10,147 (165,900 ) Total revenues $ 1,058,067 136,616 77,580 2,052,192 610,458 247,368 75,902 (165,900 ) 4,092,283 Net revenues $ 547,879 65,331 44,182 372,033 229,432 82,335 41,594 1,382,786 Operating income $ 117,908 20,253 12,538 155,158 43,953 23,050 12,141 385,001 Identifiable assets at year end $ 1,188,111 82,166 42,478 454,023 387,494 128,690 39,315 1,445 2,323,722 Capital expenditures $ 24,908 724 688 2,018 3,407 2,201 754 34,700 Depreciation and amortization $ 21,010 1,391 1,087 7,446 5,968 2,473 660 40,035 Equity $ 965,620 40,421 17,809 338,208 148,592 77,566 24,796 (51,665 ) 1,561,347 2008 Revenues from unaffiliated customers $ 1,269,858 162,730 81,586 2,974,328 789,442 274,094 81,840 5,633,878 Transfers between geographic areas 108,864 10,205 15,742 21,156 44,721 17,598 8,888 (227,174 ) Total revenues $ 1,378,722 172,935 97,328 2,995,484 834,163 291,692 90,728 (227,174 ) 5,633,878 Net revenues $ 622,367 75,376 52,334 436,050 280,229 86,712 50,193 1,603,261 Operating income $ 119,115 20,094 15,059 213,555 63,156 25,795 16,362 473,136 Identifiable assets at year end $ 978,189 64,652 44,377 469,819 392,820 116,167 30,364 4,451 2,100,839 Capital expenditures $ 25,640 2,149 1,158 20,359 7,074 2,836 510 59,726 Depreciation and amortization $ 21,558 1,347 1,177 6,294 6,470 2,274 883 40,003 Equity $ 773,565 32,530 26,030 357,855 138,710 60,504 18,593 (23,871 ) 1,383,916 2007 Revenues from unaffiliated customers $ 1,077,872 134,436 71,176 2,959,873 684,661 236,062 71,091 5,235,171 Transfers between geographic areas 105,830 9,030 11,073 18,234 36,563 13,883 7,854 (202,467 ) Total revenues $ 1,183,702 143,466 82,249 2,978,107 721,224 249,945 78,945

QUARTERLY RESULTS

QUARTERLY RESULTS (UNAUDITED)
	12 Months Ended Dec. 31, 2009 USD / shares
QUARTERLY RESULTS (UNAUDITED)	NOTE 10. QUARTERLY RESULTS (UNAUDITED) 1st 2nd 3rd 4th 2009 Revenues $ 912,685 895,360 1,037,327 1,246,911 Net revenues 336,515 330,047 346,512 369,712 Net earnings 59,369 53,814 57,564 69,650 Net earnings attributable to shareholders 59,260 54,070 57,752 69,135 Diluted earnings attributable to shareholders per share .27 .25 .27 .32 Basic earnings attributable to shareholder per share .28 .25 .27 .33 2008 Revenues $ 1,307,321 1,454,255 1,564,913 1,307,389 Net revenues 374,328 397,325 429,127 402,481 Net earnings 66,521 71,606 86,146 78,706 Net earnings attributable to shareholders 66,472 71,249 85,565 77,728 Diluted earnings attributable to shareholder per share .30 .32 .39 .36 Basic earnings attributable to shareholder per share .31 .33 .40 .37 Net revenues are determined by deducting freight consolidation costs from total revenues. The sum of quarterly per share data may not equal the per share total reported for the year.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 22, 2010	Jun. 30, 2009
Trading Symbol	EXPD
Entity Registrant Name	EXPEDITORS INTERNATIONAL OF WASHINGTON INC
Entity Central Index Key	0000746515
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		212,121,958
Entity Public Float			$6,961,475,550