Expeditors International of Washington (EXPD) 10-Q 7 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 05, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Trading Symbol	EXPD
Entity Registrant Name	EXPEDITORS INTERNATIONAL OF WASHINGTON INC
Entity Central Index Key	0000746515
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		170,720,139
Entity File Number	0-13468
Entity Tax Identification Number	911069248
Entity Address, Address Line One	1015 Third Avenue
Entity Address, City or Town	Seattle
Entity Address, State or Province	Washington
Entity Address, Postal Zip Code	98104
City Area Code	206
Local Phone Number	674-3400

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current Assets:
Cash and cash equivalents	$ 1,082,650	$ 923,735
Accounts receivable, less allowance for doubtful accounts of $13,391 at June 30, 2019 and $15,345 at December 31, 2018	1,382,070	1,581,530
Deferred contract costs	143,651	159,510
Other	103,089	70,041
Total current assets	2,711,460	2,734,816
Property and equipment, less accumulated depreciation and amortization of $465,983 at June 30, 2019 and $446,977 at December 31, 2018	499,233	504,105
Operating lease right-of-use assets	377,423	0
Goodwill	7,927	7,927
Deferred federal and state income taxes, net	33,617	40,465
Other assets, net	17,330	27,246
Total assets	3,646,990	3,314,559
Current Liabilities:
Accounts payable	811,144	902,259
Accrued expenses, primarily salaries and related costs	217,463	215,813
Contract liabilities	169,055	190,343
Current portion of operating lease liabilities	61,267	0
Federal, state and foreign income taxes	19,891	18,424
Total current liabilities	1,278,820	1,326,839
Noncurrent portion of operating lease liabilities	315,776	0
Commitments and contingencies
Shareholders’ Equity:
Preferred stock, none issued	0	0
Common stock, par value $0.01 per share. Issued and outstanding: 170,040 shares at June 30, 2019 and 171,582 shares at December 31, 2018	1,701	1,716
Additional paid-in capital	12,433	1,896
Retained earnings	2,140,935	2,088,707
Accumulated other comprehensive loss	(104,096)	(105,481)
Total shareholders’ equity	2,050,973	1,986,838
Noncontrolling interest	1,421	882
Total equity	2,052,394	1,987,720
Total liabilities and equity	$ 3,646,990	$ 3,314,559

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 13,391	$ 15,345
Property and equipment, accumulated depreciation	$ 465,983	$ 446,977
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	170,040	171,582
Common stock, shares outstanding	170,040	171,582

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	$ 2,035,579	$ 1,957,559	$ 4,055,630	$ 3,811,821
Operating Expenses:
Salaries and related		356,351	350,948	713,261	690,843
Rent and occupancy		40,897	38,071	82,420	74,984
Depreciation and amortization		12,677	13,576	26,070	27,498
Selling and promotion		11,643	10,788	22,719	21,753
Other		47,926	45,579	91,537	86,904
Total operating expenses		1,843,378	1,773,975	3,675,828	3,435,419
Operating income		192,201	183,584	379,802	376,402
Other Income (Expense):
Interest income		6,516	5,153	12,622	9,467
Other, net		2,262	1,167	3,927	1,791
Other income (expense), net		8,778	6,320	16,549	11,258
Earnings before income taxes		200,979	189,904	396,351	387,660
Income tax expense		47,449	48,958	102,710	110,514
Net earnings		153,530	140,946	293,641	277,146
Less net earnings attributable to the noncontrolling interest		381	341	793	849
Net earnings attributable to shareholders		$ 153,149	$ 140,605	$ 292,848	$ 276,297
Diluted earnings attributable to shareholders per share		$ 0.88	$ 0.79	$ 1.67	$ 1.54
Basic earnings attributable to shareholders per share		$ 0.90	$ 0.80	$ 1.71	$ 1.58
Weighted average diluted shares outstanding		174,466	178,603	174,953	179,120
Weighted average basic shares outstanding		171,003	174,754	171,425	175,324
Airfreight services
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		$ 741,577	$ 801,761	$ 1,456,478	$ 1,532,988
Operating Expenses:
Direct Operating Costs		542,639	593,325	1,051,849	1,106,829
Ocean freight and ocean services
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		543,809	530,008	1,112,450	1,050,891
Operating Expenses:
Direct Operating Costs		390,299	385,156	810,630	764,574
Customs brokerage and other services
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		750,193	625,790	1,486,702	1,227,942
Operating Expenses:
Direct Operating Costs		$ 440,946	$ 336,532	$ 877,342	$ 662,034
[1]	In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment net revenues or operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change net revenues. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 153,530	$ 140,946	$ 293,641	$ 277,146
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of tax of $82 and $15,171 for the three months ended June 30, 2019 and 2018 and $439 and $9,660 for the six months ended June 30, 2019 and 2018	(769)	(26,051)	596	(17,200)
Reclassification adjustments for foreign currency realized losses, net of tax of $145 for the three and six months ended June 30, 2019	535	0	535	0
Other comprehensive income (loss)	(234)	(26,051)	1,131	(17,200)
Comprehensive income	153,296	114,895	294,772	259,946
Less comprehensive income attributable to the noncontrolling interest	257	10	539	397
Comprehensive income attributable to shareholders	$ 153,039	$ 114,885	$ 294,233	$ 259,549

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Other Comprehensive Income Loss Tax Parenthetical Disclosures [Abstract]
Foreign currency translation adjustments, tax	$ (82)	$ (15,171)	$ 439	$ (9,660)
Reclassification adjustments for foreign currency realized losses, tax	$ 145		$ 145

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Operating Activities:
Net earnings	$ 153,530	$ 140,946	$ 293,641	$ 277,146
Adjustments to reconcile net earnings to net cash from operating activities:
Provisions for losses (recoveries) on accounts receivable	1,584	528	(304)	263
Deferred income tax expense	3,697	3,235	5,805	6,088
Stock compensation expense	23,824	18,002	37,206	29,269
Depreciation and amortization	12,677	13,576	26,070	27,498
Other, net	(29)	56	160	104
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(28,187)	(46,876)	202,290	53,771
Increase (decrease) in accounts payable and accrued expenses	39,900	58,075	(82,383)	12,231
(Increase) decrease in deferred contract costs	(13,010)	(20,019)	18,249	(16,612)
Increase (decrease) in contract liabilities	13,003	20,294	(23,722)	12,893
(Decrease) increase in income taxes payable, net	(49,606)	(38,059)	(32,613)	(18,550)
(Decrease) increase in other, net	(1,676)	(1,202)	791	(68)
Net cash from operating activities	155,707	148,556	445,190	384,033
Investing Activities:
Purchase of property and equipment	(12,987)	(12,113)	(22,422)	(25,909)
Other, net	1,038	(1,564)	1,293	(1,995)
Net cash from investing activities	(11,949)	(13,677)	(21,129)	(27,904)
Financing Activities:
Proceeds from issuance of common stock	32,287	95,363	59,477	121,760
Repurchases of common stock	(190,589)	(235,572)	(234,923)	(407,932)
Dividends Paid	(85,184)	(79,180)	(85,184)	(79,180)
Payments for taxes related to net share settlement of equity awards	(6,674)	(3,215)	(6,674)	(3,215)
Net cash from financing activities	(250,160)	(222,604)	(267,304)	(368,567)
Effect of exchange rate changes on cash and cash equivalents	(377)	(24,322)	2,158	(17,807)
Change in cash and cash equivalents	(106,779)	(112,047)	158,915	(30,245)
Cash and cash equivalents at beginning of period	1,189,429	1,132,901	923,735	1,051,099
Cash and cash equivalents at end of period	1,082,650	1,020,854	1,082,650	1,020,854
Taxes Paid:
Income taxes	$ 97,715	$ 85,612	$ 134,968	$ 124,131

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Total shareholders' equity	Noncontrolling interest
Balance at Dec. 31, 2017	$ 1,994,373	$ 1,764	$ 546	$ 2,063,512	$ (73,964)	$ 1,991,858	$ 2,515
Balance (in shares) at Dec. 31, 2017		176,374
Increase (Decrease) in Equity [Roll Forward]
Exercise of stock options and release of restricted shares	118,545	$ 30	118,515			118,545
Exercise of stock options and release of restricted shares (in shares)		2,956
Shares repurchased under provisions of stock repurchase plans	(407,932)	$ (58)	(146,882)	(260,992)		(407,932)
Shares repurchased under provisions of stock repurchase plans (in shares)		(5,753)
Stock compensation expense	29,269		29,269			29,269
Net earnings	277,146			276,297		276,297	849
Other comprehensive income (loss)	(17,200)				(16,748)	(16,748)	(452)
Dividends paid	(79,180)		159	(79,339)		(79,180)
Balance at Jun. 30, 2018	1,892,559	$ 1,736	1,607	1,977,121	(90,712)	1,889,752	2,807
Balance (in shares) at Jun. 30, 2018		173,577
Balance at Mar. 31, 2018	1,982,266	$ 1,743	1,198	2,041,520	(64,992)	1,979,469	2,797
Balance (in shares) at Mar. 31, 2018		174,308
Increase (Decrease) in Equity [Roll Forward]
Exercise of stock options and release of restricted shares	92,148	$ 24	92,124			92,148
Exercise of stock options and release of restricted shares (in shares)		2,360
Shares repurchased under provisions of stock repurchase plans	(235,572)	$ (31)	(109,876)	(125,665)		(235,572)
Shares repurchased under provisions of stock repurchase plans (in shares)		(3,091)
Stock compensation expense	18,002		18,002			18,002
Net earnings	140,946			140,605		140,605	341
Other comprehensive income (loss)	(26,051)				(25,720)	(25,720)	(331)
Dividends paid	(79,180)		159	(79,339)		(79,180)
Balance at Jun. 30, 2018	1,892,559	$ 1,736	1,607	1,977,121	(90,712)	1,889,752	2,807
Balance (in shares) at Jun. 30, 2018		173,577
Increase (Decrease) in Equity [Roll Forward]
Cumulative effect of accounting change	(22,462)			(22,357)		(22,357)	(105)
Balance at Dec. 31, 2018	$ 1,987,720	$ 1,716	1,896	2,088,707	(105,481)	1,986,838	882
Balance (in shares) at Dec. 31, 2018	171,582	171,582
Increase (Decrease) in Equity [Roll Forward]
Exercise of stock options and release of restricted shares	$ 52,803	$ 17	52,786			52,803
Exercise of stock options and release of restricted shares (in shares)		1,656
Shares repurchased under provisions of stock repurchase plans	(234,923)	$ (32)	(79,858)	(155,033)		(234,923)
Shares repurchased under provisions of stock repurchase plans (in shares)		(3,198)
Stock compensation expense	37,206		37,206			37,206
Net earnings	293,641			292,848		292,848	793
Other comprehensive income (loss)	1,131				1,385	1,385	(254)
Dividends paid	(85,184)		403	(85,587)		(85,184)
Balance at Jun. 30, 2019	$ 2,052,394	$ 1,701	12,433	2,140,935	(104,096)	2,050,973	1,421
Balance (in shares) at Jun. 30, 2019	170,040	170,040
Balance at Mar. 31, 2019	$ 2,125,434	$ 1,716	3,978	2,222,562	(103,986)	2,124,270	1,164
Balance (in shares) at Mar. 31, 2019		171,648
Increase (Decrease) in Equity [Roll Forward]
Exercise of stock options and release of restricted shares	25,613	$ 11	25,602			25,613
Exercise of stock options and release of restricted shares (in shares)		1,002
Shares repurchased under provisions of stock repurchase plans	(190,589)	$ (26)	(41,374)	(149,189)		(190,589)
Shares repurchased under provisions of stock repurchase plans (in shares)		(2,610)
Stock compensation expense	23,824		23,824			23,824
Net earnings	153,530			153,149		153,149	381
Other comprehensive income (loss)	(234)				(110)	(110)	(124)
Dividends paid	(85,184)		403	(85,587)		(85,184)
Balance at Jun. 30, 2019	$ 2,052,394	$ 1,701	$ 12,433	$ 2,140,935	$ (104,096)	$ 2,050,973	$ 1,421
Balance (in shares) at Jun. 30, 2019	170,040	170,040

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement Of Stockholders Equity [Abstract]
Dividends paid, per share	$ 0.50	$ 0.45	$ 0.50	$ 0.45

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies A. Basis of Presentation Expeditors International of Washington, Inc. (the Company) is a non-asset based provider of global logistics services operating through a worldwide network of offices and exclusive or non-exclusive agents. The Company’s customers include retailing and wholesaling, electronics, industrial and manufacturing companies around the world. The condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. As a result, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) have been condensed or omitted. The Company believes that the disclosures made are adequate to make the information presented not misleading. The condensed consolidated financial statements reflect all adjustments, consisting of normal recurring items, which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Form 10-K as filed with the Securities and Exchange Commission on February 22, 2019. All significant intercompany accounts and transactions have been eliminated in consolidation. All dollar amounts in the notes are presented in thousands except for per share data or unless otherwise specified. B. Revenue Recognition The Company derives its revenues by entering into agreements that are generally comprised of a single performance obligation, which is that freight is shipped for and received by the customer. The Company's three principal services are the revenue categories presented in the consolidated statements of earnings: 1) airfreight services, 2) ocean freight and ocean services, and 3) customs brokerage and other services. The Company typically satisfies its performance obligations as services are rendered over time. A typical shipment would include services rendered at origin, such as pick-up and delivery to port, freight services from origin to destination port and destination services, such as customs clearance and final delivery. The Company measures the performance of its obligations as services are completed over the life of a shipment, including services at origin, freight and destination. The Company fulfills nearly all of its performance obligations within a one to two month-period and contracts with customers have an original expected duration of less than one year. The Company satisfied nearly all performance obligations for the contract liabilities recorded as of March 31, 2019 and December 31, 2018. In 2019, the Company revised its presentation for revenue transfers between its geographic operating segments and services rendered at the destination, which moved certain revenues and directly related operating expenses for air and ocean transactions to destination services within customs brokerage and other services. These changes better align revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment net revenues or operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased revenues and directly related operating expenses in customs brokerage and other services but did not change net revenues. The impact on reported consolidated and segment total revenues and expenses for these changes was immaterial and the prior year presentation has not been revised. C. Leases Effective January 1, 2019, the Company adopted new lease accounting guidance using a modified retrospective approach and recognizing a right-of-use (ROU) asset and lease liability on the balance sheet. On January 1, 2019, ROU assets and lease liabilities were recorded for all existing leases exceeding one-year terms and were measured at the present value of lease payments over the remaining lease term. The adoption of this accounting standard resulted in recording ROU assets and lease liabilities for operating leases of $343 million and $340 million, respectively, as of January 1, 2019. The adoption of this standard had no impact on retained earnings on the condensed consolidated balance sheet. In recording the ROU asset and lease liability, the Company elected to apply the following practical expedients: • Package of practical expedients not to reassess: ◦ Whether a contract is or contains a lease, ◦ Historical lease classification, and ◦ Initial direct costs. • Use of hindsight when determining the lease term. Additionally, the Company has elected to apply the short-term lease exemption for leases with a non-cancelable period of twelve months or less and has chosen not to separate nonlease components from lease components and instead to account for each as a single lease component. The Company determines if an arrangement is a lease at inception. ROU assets represent the Company's right to use an underlying asset for the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease. All ROU assets and lease liabilities are recognized at the commencement date at the present value of lease payments over the lease term. ROU assets are adjusted for lease incentives and initial direct costs. The lease term includes renewal options exercisable at the Company's sole discretion when the Company is reasonably certain to exercise that option. As most of the Company's leases do not have an implicit rate, the Company uses an estimated incremental borrowing rate based on market information available at the commencement date to determine the present value. Certain of our leases include variable payments, which may vary based upon changes in facts or circumstances after the start of the lease. The Company excludes variable payments from lease ROU assets and lease liabilities, to the extent not considered fixed, and instead expense variable payments as incurred. Lease expense is recognized on a straight-line basis over the lease term and is included in rent and occupancy expenses on the condensed consolidated statement of earnings. D. Accounts Receivable The Company maintains an allowance for doubtful accounts, which is reviewed at least monthly for estimated losses resulting from the inability of its customers to make required payments for services and advances. Additional allowances may be necessary in the future if the ability of customers to pay deteriorates. The Company has recorded an allowance for doubtful accounts in the amounts of $13,391 Additions and write-offs have not been significant in the periods presented. E. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. The Company uses estimates primarily in the following areas: accounts receivable valuation, accrual of costs related to ancillary services the Company provides, accrual of liabilities for the portion of the related exposure that the Company has self-insured, accrual of various tax liabilities including estimates associated with the U.S. enacted Tax Cuts and Jobs Act (the 2017 Tax Act), accrual of loss contingencies, calculation of share-based compensation expense and estimates related to determining the lease term when measuring ROU assets and lease liabilities. Actual results could be materially different from the estimated provisions and accruals recorded. F. Recent Accounting Pronouncement In June 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), which amends existing guidance for the accounting of credit losses on financial instruments. Under the ASU, the Company will record a valuation allowance for credit losses that are expected to be incurred over the financial asset’s contractual term. This standard will be effective for the Company on January 1, 2020 and is not expected to have a material effect on the consolidated financial statements as the new credit loss model will primarily apply to the Company's accounts receivable, which are of short duration and for which the Company has not historically experienced significant credit losses. However, the Company is still evaluating the impact of the new prescribed model compared to its current methodology.

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Lessee Disclosure [Abstract]
Lessee, Operating Leases	Note 2. Leases The Company enters into lease agreements primarily for office and warehouse space in all districts where it conducts business. As of June 30, 2019, all of the Company's leases are operating leases. Lease cost for the three and six months ended June 30, 2019 were all recorded under rent and occupancy expenses on the condensed consolidated statement of earnings and were comprised of the following: Three months ended June 30, 2019 Six months ended June 30, 2019 Operating lease cost $ 20,093 $ 40,048 Variable lease cost 6,483 12,877 Total lease cost $ 26,576 $ 52,925 Variable lease cost includes short-term lease expenses, which are insignificant. Maturities of lease liabilities as of June 30, 2019 are as follows: 2019 $ 38,857 2020 74,341 2021 64,607 2022 58,276 2023 49,930 Thereafter 169,715 Total minimum lease payments 455,726 Less imputed interest 78,683 Lease liability $ 377,043 At December 31, 2018, the last balance sheet presented before the adoption of the new accounting standard Topic 842 Leases 2019 $ 75,227 2020 62,974 2021 47,552 2022 38,352 2023 26,580 Thereafter 67,140 $ 317,825 The weighted-average remaining lease term and weighted-average discount rate as of June 30, 2019 are as follows: Weighted-average remaining lease term (in years) 7.63 Weighted-average discount rate 4.96 % Other information related to the Company's operating leases are as follows: Three months ended June 30, 2019 Six months ended June 30, 2019 Right-of-use assets obtained in exchange for new operating lease liabilities $ 43,398 $ 62,034 Cash paid for amounts included in the measurement of lease liabilities $ 20,046 $ 39,292

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2019
Share Based Compensation [Abstract]
Share-Based Compensation	Note 3. Share-Based Compensation The Company has historically granted the majority of its share-based awards during the second quarter of each fiscal year. In the second quarter of 2019 and 2018, the Company awarded 462 $75.73 3 years The Company also awarded 96 RSUs and PSUs granted under the 2017 Plan have dividend equivalent rights, which entitle holders of the awards to the same dividend value per share as holders of common stock. Dividend equivalent rights are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs and PSUs and are accumulated and paid in shares when the underlying awards The grant of employee stock purchase rights and the issuance of shares under the employee stock purchase plan are made in the third quarter of each fiscal year. None were issued during the three and six months ended June 30, 2019 and 2018. The Company recognizes stock compensation expense based on the fair value of awards granted to employees and directors under the Company’s omnibus incentive, stock option, director restricted stock and employee stock purchase rights plans. This expense, adjusted for expected forfeitures, is recognized in net earnings on a straight-line basis over the service periods as salaries and related costs on the condensed consolidated statements of earnings. RSUs and PSUs awarded to certain employees meeting specific retirement eligibility criteria at the time of grant are expensed immediately as there is no substantive service period associated with those awards. For RSU awards meeting retirement eligibility criteria, approximately $5,000 of stock compensation expense was recognized for the three and six months ended June 30, 2019, and approximately $4,000 of stock compensation expense was recognized for three and six months ended June 30, 2018. For PSU awards meeting retirement eligibility criteria, approximately $5,000

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	Note 4. Income Taxes In December 2017, the 2017 Tax Act was enacted in the United States. Beginning January 1, 2018, foreign earnings of the Company's international subsidiaries are generally exempt from U.S. Federal income tax upon repatriation. Notwithstanding these changes, certain withholding taxes and foreign exchange gains and losses will continue to be applicable upon the repatriation of foreign earnings. During 2018 and 2019, the Internal Revenue Service (IRS) and the U.S. Department of Treasury (Treasury) issued additional guidelines and clarifying regulations related to the implementation of the 2017 Tax Act. The Company expects that additional guidance will continue to be issued in future periods. As this guidance is issued, the Company will continue to evaluate the information to determine whether any additional adjustments to its tax provisions are required. The 2017 Tax Act included provisions for Global Intangible Low-Taxed Income (GILTI) under which taxes on foreign income are imposed on the excess of a deemed return on tangible assets of certain foreign subsidiaries and for Base Erosion and Anti-Abuse Tax (BEAT) under which taxes are imposed on certain base eroding payments to affiliated foreign companies. The Company treats BEAT and GILTI as components of current income tax expense. Income tax expense for the three and six months ended June 30, 2019 and 2018 had no tax expense related to GILTI. In February 2018, the FASB issued amended guidance for reporting comprehensive income to reflect changes resulting from the 2017 Tax Act. The amendment, which had an effective date of January 1, 2019, provided the option to reclassify stranded tax effects resulting from the 2017 Tax Act within accumulated other comprehensive income (AOCI) to retained earnings. The Company elected to not reclassify stranded income tax effects from AOCI to retained earnings, including those related to implementation of the 2017 Tax Act. Our consolidated effective income tax rate was 23.6% and 25.9% for the three and six months ended June 30, 2019, as compared to 25.8% and 28.5% for the comparable periods in 2018. The effect of higher average foreign tax rates of our international subsidiaries, when compared to U.S. federal and state tax rates, were impacted by the following items. The effective tax rate in 2019 benefited from available U.S foreign tax credits associated with withholding taxes of our foreign operations, U.S. income tax deductions for Foreign-derived intangible income (FDII), and a state income tax refund. These benefits were partially offset by lower share-based compensation deductions in 2019 from stock option exercises when compared to the same periods in 2018 and higher state income tax expense when excluding the state income tax refund recorded during the second quarter of 2019. In addition, 2018 included higher income tax expense related to an estimated BEAT tax liability and an adjustment made to the provisional Transition Tax liability associated with enactment of the 2017 Tax Act. As discussed above, some elements of the recorded impacts of the 2017 Tax Act could be impacted by further legislative action as well as additional interpretations and guidance issued by the IRS or Treasury. As a result, the amount of income tax recorded in the future may differ, possibly materially. For further information and discussion of the potential impact of the 2017 Tax Act, refer to Note 5 to the consolidated financial statements in the Company's 2018 Annual Report on Form 10-K.

Basic and Diluted Earnings per

Basic and Diluted Earnings per Share	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Basic and Diluted Earnings per Share	Note 5. Basic and Diluted Earnings per Share Diluted earnings attributable to shareholders per share is computed using the weighted average number of common shares and dilutive potential common shares outstanding. Dilutive potential shares represent outstanding stock options, including purchase options under the Company's employee stock purchase plan, and unvested restricted stock units. Basic earnings attributable to shareholders per share is calculated using the weighted average number of common shares outstanding without taking into consideration dilutive potential common shares outstanding. The following table reconciles the numerator and the denominator of the basic and diluted per share computations for earnings attributable to shareholders: Three months ended June 30, Net earnings attributable to shareholders Weighted average shares Earnings per share 2019 Basic earnings attributable to shareholders $ 153,149 171,003 $ 0.90 Effect of dilutive potential common shares — 3,463 — Diluted earnings attributable to shareholders $ 153,149 174,466 $ 0.88 2018 Basic earnings attributable to shareholders $ 140,605 174,754 $ 0.80 Effect of dilutive potential common shares — 3,849 — Diluted earnings attributable to shareholders $ 140,605 178,603 $ 0.79 Six months ended June 30, Net earnings attributable to shareholders Weighted average shares Earnings per share 2019 Basic earnings attributable to shareholders $ 292,848 171,425 $ 1.71 Effect of dilutive potential common shares — 3,528 — Diluted earnings attributable to shareholders $ 292,848 174,953 $ 1.67 2018 Basic earnings attributable to shareholders $ 276,297 175,324 $ 1.58 Effect of dilutive potential common shares — 3,796 — Diluted earnings attributable to shareholders $ 276,297 179,120 $ 1.54

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2019
Stockholders Equity Note [Abstract]
Shareholders' Equity	Note 6. Shareholders' Equity The Company has a Discretionary Stock Repurchase Plan approved by the Board of Directors that authorizes management to reduce issued and outstanding common stock down to 160,000 shares. During the six months ended June 30, 2019, 3,110 shares were repurchased at an average price of $73.45 The Company also had a Non-Discretionary Stock Repurchase Plan to repurchase shares from the proceeds of stock option exercises and employee stock purchases. As of March 31, 2019, all shares authorized under this plan have been repurchased. During the six months ended June 30, 2019, 88 shares were repurchased at an average price of $74.03, compared to 1,411 at an average price of $72.21 per share during the same period in 2018. Accumulated other comprehensive loss consisted entirely of foreign currency translation adjustments, net of related income tax effects, for all the periods presented. On May 7, 2019, the Board of Directors declared a semi-annual dividend of $0.50 per share payable on June 17, 2019 to shareholders of record as of June 3, 2019. On May 8, 2018, the Board of Directors declared a semi-annual dividend of $0.45 per share paid on June 15, 2018 to shareholders of record as of June 1, 2018.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 7. Fair Value of Financial Instruments The Company’s financial instruments, other than cash, consist primarily of cash equivalents, accounts receivable, accounts payable and accrued expenses. The carrying value of these financial instruments approximates their fair value. All highly liquid investments with a maturity of three months or less at date of purchase are considered to be cash equivalents. Cash and cash equivalents consist of the following: June 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Cash and Cash Equivalents: Cash and overnight deposits $ 513,328 $ 513,328 $ 427,307 $ 427,307 Corporate commercial paper 530,565 530,991 467,300 467,760 Time deposits 38,757 38,757 29,128 29,128 Total cash and cash equivalents $ 1,082,650 $ 1,083,076 $ 923,735 $ 924,195 The fair value of corporate commercial paper and time deposits is based on the use of market interest rates for identical or similar assets (Level 2 fair value measurement).

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2019
Loss Contingency [Abstract]
Contingencies	Note 8. Contingencies The Company is involved in claims, lawsuits, government investigations and other legal matters that arise in the ordinary course of business and are subject to inherent uncertainties. Currently, in management's opinion and based upon advice from legal advisors, none of these matters are expected to have a significant effect on the Company's operations, cash flows or financial position. As of June 30, 2019, the amounts accrued for these claims, lawsuits, government investigations and other legal matters are not significant to the Company's operations, cash flows or financial position. At this time, the Company is unable to estimate any additional loss or range of reasonably possible losses, if any, beyond the amounts recorded, that might result from the resolution of these matters.

Business Segment Information

Business Segment Information	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Business Segment Information	Note 9. Business Segment Information The Company is organized functionally in geographic operating segments. Accordingly, management focuses its attention on revenues, net revenues 1 Financial information regarding the Company’s operations by geographic area is as follows: UNITED STATES OTHER NORTH AMERICA LATIN AMERICA NORTH ASIA SOUTH ASIA EUROPE MIDDLE EAST, AFRICA AND INDIA ELIMI- NATIONS CONSOLI- DATED For the three months ended June 30, 2019: Revenues 2 $ 681,076 85,537 38,757 621,951 181,380 319,331 108,311 (764 ) 2,035,579 Net revenues 1 $ 294,983 35,201 16,714 134,397 48,893 98,655 33,222 (370 ) 661,695 Operating income $ 87,923 8,858 2,346 64,453 15,513 9,315 3,799 (6 ) 192,201 Identifiable assets at period end $ 1,819,718 176,151 73,197 580,311 193,771 581,518 229,692 (7,368 ) 3,646,990 Capital expenditures $ 8,985 768 145 300 428 1,914 447 — 12,987 Depreciation and amortization $ 7,687 459 380 1,384 496 1,775 496 — 12,677 Equity $ 1,303,381 83,417 31,014 282,192 107,229 168,570 109,790 (33,199 ) 2,052,394 For the three months ended June 30, 2018: Revenues 2 $ 598,076 84,244 42,618 680,227 179,528 330,775 114,005 (71,914 ) 1,957,559 Net revenues 1 $ 271,880 34,749 15,923 140,583 44,886 102,371 33,125 (971 ) 642,546 Operating income $ 63,628 10,077 2,701 70,359 13,374 16,958 6,490 (3 ) 183,584 Identifiable assets at period end $ 1,488,060 153,827 54,186 540,954 157,479 526,607 217,716 (5,997 ) 3,132,832 Capital expenditures $ 6,032 2,191 167 559 695 1,225 1,244 — 12,113 Depreciation and amortization $ 8,447 473 395 1,303 542 1,955 461 — 13,576 Equity $ 1,196,226 56,702 26,625 250,513 112,259 157,493 127,032 (34,291 ) 1,892,559 UNITED STATES OTHER NORTH AMERICA LATIN AMERICA NORTH ASIA SOUTH ASIA EUROPE MIDDLE EAST, AFRICA AND INDIA ELIMI- NATIONS CONSOLI- DATED For the six months ended June 30, 2019: Revenues 2 $ 1,340,859 176,947 72,936 1,254,804 358,559 632,021 220,986 (1,482 ) 4,055,630 Net revenues 1 $ 587,412 70,370 31,777 268,604 96,262 195,450 66,394 (460 ) 1,315,809 Operating income $ 161,936 19,818 4,982 130,233 31,420 23,267 8,160 (14 ) 379,802 Identifiable assets at period end $ 1,819,718 176,151 73,197 580,311 193,771 581,518 229,692 (7,368 ) 3,646,990 Capital expenditures $ 15,900 996 238 644 604 2,896 1,144 — 22,422 Depreciation and amortization $ 15,909 926 812 2,791 1,032 3,606 994 — 26,070 Equity $ 1,303,381 83,417 31,014 282,192 107,229 168,570 109,790 (33,199 ) 2,052,394 For the six months ended June 30, 2018: Revenues 2 $ 1,161,826 164,331 78,727 1,316,816 354,678 650,755 224,542 (139,854 ) 3,811,821 Net revenues 1 $ 549,065 65,196 30,668 277,791 89,292 201,006 66,326 (960 ) 1,278,384 Operating income $ 133,276 19,095 5,071 140,282 28,506 36,236 13,928 8 376,402 Identifiable assets at period end $ 1,488,060 153,827 54,186 540,954 157,479 526,607 217,716 (5,997 ) 3,132,832 Capital expenditures $ 9,203 3,719 672 1,343 1,024 8,416 1,532 — 25,909 Depreciation and amortization $ 17,212 871 763 2,679 1,125 3,931 917 — 27,498 Equity $ 1,196,226 56,702 26,625 250,513 112,259 157,493 127,032 (34,291 ) 1,892,559 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. 2 In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment net revenues or operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change net revenues. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised. The following table presents the calculation of consolidated net revenues: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Revenues $ 2,035,579 $ 1,957,559 $ 4,055,630 $ 3,811,821 Expenses: Airfreight services 542,639 593,325 1,051,849 1,106,829 Ocean freight and ocean services 390,299 385,156 810,630 764,574 Customs brokerage and other services 440,946 336,532 877,342 662,034 Net revenues $ 661,695 $ 642,546 $ 1,315,809 $ 1,278,384

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation, Policy	The condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. As a result, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) have been condensed or omitted. The Company believes that the disclosures made are adequate to make the information presented not misleading. The condensed consolidated financial statements reflect all adjustments, consisting of normal recurring items, which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Form 10-K as filed with the Securities and Exchange Commission on February 22, 2019. All significant intercompany accounts and transactions have been eliminated in consolidation. All dollar amounts in the notes are presented in thousands except for per share data or unless otherwise specified.
Revenue Recognition, Policy	The Company derives its revenues by entering into agreements that are generally comprised of a single performance obligation, which is that freight is shipped for and received by the customer. The Company's three principal services are the revenue categories presented in the consolidated statements of earnings: 1) airfreight services, 2) ocean freight and ocean services, and 3) customs brokerage and other services. The Company typically satisfies its performance obligations as services are rendered over time. A typical shipment would include services rendered at origin, such as pick-up and delivery to port, freight services from origin to destination port and destination services, such as customs clearance and final delivery. The Company measures the performance of its obligations as services are completed over the life of a shipment, including services at origin, freight and destination. The Company fulfills nearly all of its performance obligations within a one to two month-period and contracts with customers have an original expected duration of less than one year. The Company satisfied nearly all performance obligations for the contract liabilities recorded as of March 31, 2019 and December 31, 2018. In 2019, the Company revised its presentation for revenue transfers between its geographic operating segments and services rendered at the destination, which moved certain revenues and directly related operating expenses for air and ocean transactions to destination services within customs brokerage and other services. These changes better align revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment net revenues or operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased revenues and directly related operating expenses in customs brokerage and other services but did not change net revenues. The impact on reported consolidated and segment total revenues and expenses for these changes was immaterial and the prior year presentation has not been revised.
Leases, Policy	Effective January 1, 2019, the Company adopted new lease accounting guidance using a modified retrospective approach and recognizing a right-of-use (ROU) asset and lease liability on the balance sheet. On January 1, 2019, ROU assets and lease liabilities were recorded for all existing leases exceeding one-year terms and were measured at the present value of lease payments over the remaining lease term. The adoption of this accounting standard resulted in recording ROU assets and lease liabilities for operating leases of $343 million and $340 million, respectively, as of January 1, 2019. The adoption of this standard had no impact on retained earnings on the condensed consolidated balance sheet. In recording the ROU asset and lease liability, the Company elected to apply the following practical expedients: • Package of practical expedients not to reassess: ◦ Whether a contract is or contains a lease, ◦ Historical lease classification, and ◦ Initial direct costs. • Use of hindsight when determining the lease term. Additionally, the Company has elected to apply the short-term lease exemption for leases with a non-cancelable period of twelve months or less and has chosen not to separate nonlease components from lease components and instead to account for each as a single lease component. The Company determines if an arrangement is a lease at inception. ROU assets represent the Company's right to use an underlying asset for the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease. All ROU assets and lease liabilities are recognized at the commencement date at the present value of lease payments over the lease term. ROU assets are adjusted for lease incentives and initial direct costs. The lease term includes renewal options exercisable at the Company's sole discretion when the Company is reasonably certain to exercise that option. As most of the Company's leases do not have an implicit rate, the Company uses an estimated incremental borrowing rate based on market information available at the commencement date to determine the present value. Certain of our leases include variable payments, which may vary based upon changes in facts or circumstances after the start of the lease. The Company excludes variable payments from lease ROU assets and lease liabilities, to the extent not considered fixed, and instead expense variable payments as incurred. Lease expense is recognized on a straight-line basis over the lease term and is included in rent and occupancy expenses on the condensed consolidated statement of earnings.
Accounts Receivable, Policy	The Company maintains an allowance for doubtful accounts, which is reviewed at least monthly for estimated losses resulting from the inability of its customers to make required payments for services and advances. Additional allowances may be necessary in the future if the ability of customers to pay deteriorates. The Company has recorded an allowance for doubtful accounts in the amounts of $13,391 Additions and write-offs have not been significant in the periods presented.
Use of Estimates, Policy	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. The Company uses estimates primarily in the following areas: accounts receivable valuation, accrual of costs related to ancillary services the Company provides, accrual of liabilities for the portion of the related exposure that the Company has self-insured, accrual of various tax liabilities including estimates associated with the U.S. enacted Tax Cuts and Jobs Act (the 2017 Tax Act), accrual of loss contingencies, calculation of share-based compensation expense and estimates related to determining the lease term when measuring ROU assets and lease liabilities. Actual results could be materially different from the estimated provisions and accruals recorded.
New Accounting Pronouncements, Policy	In June 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), which amends existing guidance for the accounting of credit losses on financial instruments. Under the ASU, the Company will record a valuation allowance for credit losses that are expected to be incurred over the financial asset’s contractual term. This standard will be effective for the Company on January 1, 2020 and is not expected to have a material effect on the consolidated financial statements as the new credit loss model will primarily apply to the Company's accounts receivable, which are of short duration and for which the Company has not historically experienced significant credit losses. However, the Company is still evaluating the impact of the new prescribed model compared to its current methodology.
Stock Plans, Policy	The Company recognizes stock compensation expense based on the fair value of awards granted to employees and directors under the Company’s omnibus incentive, stock option, director restricted stock and employee stock purchase rights plans. This expense, adjusted for expected forfeitures, is recognized in net earnings on a straight-line basis over the service periods as salaries and related costs on the condensed consolidated statements of earnings. RSUs and PSUs awarded to certain employees meeting specific retirement eligibility criteria at the time of grant are expensed immediately as there is no substantive service period associated with those awards. For RSU awards meeting retirement eligibility criteria, approximately $5,000 of stock compensation expense was recognized for the three and six months ended June 30, 2019, and approximately $4,000 of stock compensation expense was recognized for three and six months ended June 30, 2018. For PSU awards meeting retirement eligibility criteria, approximately $5,000
Income Tax, Policy	In December 2017, the 2017 Tax Act was enacted in the United States. Beginning January 1, 2018, foreign earnings of the Company's international subsidiaries are generally exempt from U.S. Federal income tax upon repatriation. Notwithstanding these changes, certain withholding taxes and foreign exchange gains and losses will continue to be applicable upon the repatriation of foreign earnings. During 2018 and 2019, the Internal Revenue Service (IRS) and the U.S. Department of Treasury (Treasury) issued additional guidelines and clarifying regulations related to the implementation of the 2017 Tax Act. The Company expects that additional guidance will continue to be issued in future periods. As this guidance is issued, the Company will continue to evaluate the information to determine whether any additional adjustments to its tax provisions are required. The 2017 Tax Act included provisions for Global Intangible Low-Taxed Income (GILTI) under which taxes on foreign income are imposed on the excess of a deemed return on tangible assets of certain foreign subsidiaries and for Base Erosion and Anti-Abuse Tax (BEAT) under which taxes are imposed on certain base eroding payments to affiliated foreign companies. The Company treats BEAT and GILTI as components of current income tax expense. Income tax expense for the three and six months ended June 30, 2019 and 2018 had no tax expense related to GILTI. In February 2018, the FASB issued amended guidance for reporting comprehensive income to reflect changes resulting from the 2017 Tax Act. The amendment, which had an effective date of January 1, 2019, provided the option to reclassify stranded tax effects resulting from the 2017 Tax Act within accumulated other comprehensive income (AOCI) to retained earnings. The Company elected to not reclassify stranded income tax effects from AOCI to retained earnings, including those related to implementation of the 2017 Tax Act.
Earnings Per Share, Policy	Diluted earnings attributable to shareholders per share is computed using the weighted average number of common shares and dilutive potential common shares outstanding. Dilutive potential shares represent outstanding stock options, including purchase options under the Company's employee stock purchase plan, and unvested restricted stock units. Basic earnings attributable to shareholders per share is calculated using the weighted average number of common shares outstanding without taking into consideration dilutive potential common shares outstanding.
Cash Equivalents, Policy	The Company’s financial instruments, other than cash, consist primarily of cash equivalents, accounts receivable, accounts payable and accrued expenses. The carrying value of these financial instruments approximates their fair value. All highly liquid investments with a maturity of three months or less at date of purchase are considered to be cash equivalents.
Segment Reporting, Policy	The Company is organized functionally in geographic operating segments. Accordingly, management focuses its attention on revenues, net revenues 1

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Lessee Disclosure [Abstract]
Lease, Cost	Lease cost for the three and six months ended June 30, 2019 were all recorded under rent and occupancy expenses on the condensed consolidated statement of earnings and were comprised of the following: Three months ended June 30, 2019 Six months ended June 30, 2019 Operating lease cost $ 20,093 $ 40,048 Variable lease cost 6,483 12,877 Total lease cost $ 26,576 $ 52,925
Lessee, Operating Lease, Liability, Maturity	Maturities of lease liabilities as of June 30, 2019 are as follows: 2019 $ 38,857 2020 74,341 2021 64,607 2022 58,276 2023 49,930 Thereafter 169,715 Total minimum lease payments 455,726 Less imputed interest 78,683 Lease liability $ 377,043
Schedule of Future Minimum Rental Payments for Operating Leases	At December 31, 2018, the last balance sheet presented before the adoption of the new accounting standard Topic 842 Leases 2019 $ 75,227 2020 62,974 2021 47,552 2022 38,352 2023 26,580 Thereafter 67,140 $ 317,825
Schedule of Weighted-average Remaining Lease Term and Weighted-average Discount Rate	The weighted-average remaining lease term and weighted-average discount rate as of June 30, 2019 are as follows: Weighted-average remaining lease term (in years) 7.63 Weighted-average discount rate 4.96 %
Other information related to leases	Other information related to the Company's operating leases are as follows: Three months ended June 30, 2019 Six months ended June 30, 2019 Right-of-use assets obtained in exchange for new operating lease liabilities $ 43,398 $ 62,034 Cash paid for amounts included in the measurement of lease liabilities $ 20,046 $ 39,292

Basic and Diluted Earnings pe_2

Basic and Diluted Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table reconciles the numerator and the denominator of the basic and diluted per share computations for earnings attributable to shareholders: Three months ended June 30, Net earnings attributable to shareholders Weighted average shares Earnings per share 2019 Basic earnings attributable to shareholders $ 153,149 171,003 $ 0.90 Effect of dilutive potential common shares — 3,463 — Diluted earnings attributable to shareholders $ 153,149 174,466 $ 0.88 2018 Basic earnings attributable to shareholders $ 140,605 174,754 $ 0.80 Effect of dilutive potential common shares — 3,849 — Diluted earnings attributable to shareholders $ 140,605 178,603 $ 0.79 Six months ended June 30, Net earnings attributable to shareholders Weighted average shares Earnings per share 2019 Basic earnings attributable to shareholders $ 292,848 171,425 $ 1.71 Effect of dilutive potential common shares — 3,528 — Diluted earnings attributable to shareholders $ 292,848 174,953 $ 1.67 2018 Basic earnings attributable to shareholders $ 276,297 175,324 $ 1.58 Effect of dilutive potential common shares — 3,796 — Diluted earnings attributable to shareholders $ 276,297 179,120 $ 1.54

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of Fair value of Cash and Cash Equivalents by Balance Sheet Grouping	Cash and cash equivalents consist of the following: June 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Cash and Cash Equivalents: Cash and overnight deposits $ 513,328 $ 513,328 $ 427,307 $ 427,307 Corporate commercial paper 530,565 530,991 467,300 467,760 Time deposits 38,757 38,757 29,128 29,128 Total cash and cash equivalents $ 1,082,650 $ 1,083,076 $ 923,735 $ 924,195

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Financial information regarding the Company’s operations by geographic area is as follows: UNITED STATES OTHER NORTH AMERICA LATIN AMERICA NORTH ASIA SOUTH ASIA EUROPE MIDDLE EAST, AFRICA AND INDIA ELIMI- NATIONS CONSOLI- DATED For the three months ended June 30, 2019: Revenues 2 $ 681,076 85,537 38,757 621,951 181,380 319,331 108,311 (764 ) 2,035,579 Net revenues 1 $ 294,983 35,201 16,714 134,397 48,893 98,655 33,222 (370 ) 661,695 Operating income $ 87,923 8,858 2,346 64,453 15,513 9,315 3,799 (6 ) 192,201 Identifiable assets at period end $ 1,819,718 176,151 73,197 580,311 193,771 581,518 229,692 (7,368 ) 3,646,990 Capital expenditures $ 8,985 768 145 300 428 1,914 447 — 12,987 Depreciation and amortization $ 7,687 459 380 1,384 496 1,775 496 — 12,677 Equity $ 1,303,381 83,417 31,014 282,192 107,229 168,570 109,790 (33,199 ) 2,052,394 For the three months ended June 30, 2018: Revenues 2 $ 598,076 84,244 42,618 680,227 179,528 330,775 114,005 (71,914 ) 1,957,559 Net revenues 1 $ 271,880 34,749 15,923 140,583 44,886 102,371 33,125 (971 ) 642,546 Operating income $ 63,628 10,077 2,701 70,359 13,374 16,958 6,490 (3 ) 183,584 Identifiable assets at period end $ 1,488,060 153,827 54,186 540,954 157,479 526,607 217,716 (5,997 ) 3,132,832 Capital expenditures $ 6,032 2,191 167 559 695 1,225 1,244 — 12,113 Depreciation and amortization $ 8,447 473 395 1,303 542 1,955 461 — 13,576 Equity $ 1,196,226 56,702 26,625 250,513 112,259 157,493 127,032 (34,291 ) 1,892,559 UNITED STATES OTHER NORTH AMERICA LATIN AMERICA NORTH ASIA SOUTH ASIA EUROPE MIDDLE EAST, AFRICA AND INDIA ELIMI- NATIONS CONSOLI- DATED For the six months ended June 30, 2019: Revenues 2 $ 1,340,859 176,947 72,936 1,254,804 358,559 632,021 220,986 (1,482 ) 4,055,630 Net revenues 1 $ 587,412 70,370 31,777 268,604 96,262 195,450 66,394 (460 ) 1,315,809 Operating income $ 161,936 19,818 4,982 130,233 31,420 23,267 8,160 (14 ) 379,802 Identifiable assets at period end $ 1,819,718 176,151 73,197 580,311 193,771 581,518 229,692 (7,368 ) 3,646,990 Capital expenditures $ 15,900 996 238 644 604 2,896 1,144 — 22,422 Depreciation and amortization $ 15,909 926 812 2,791 1,032 3,606 994 — 26,070 Equity $ 1,303,381 83,417 31,014 282,192 107,229 168,570 109,790 (33,199 ) 2,052,394 For the six months ended June 30, 2018: Revenues 2 $ 1,161,826 164,331 78,727 1,316,816 354,678 650,755 224,542 (139,854 ) 3,811,821 Net revenues 1 $ 549,065 65,196 30,668 277,791 89,292 201,006 66,326 (960 ) 1,278,384 Operating income $ 133,276 19,095 5,071 140,282 28,506 36,236 13,928 8 376,402 Identifiable assets at period end $ 1,488,060 153,827 54,186 540,954 157,479 526,607 217,716 (5,997 ) 3,132,832 Capital expenditures $ 9,203 3,719 672 1,343 1,024 8,416 1,532 — 25,909 Depreciation and amortization $ 17,212 871 763 2,679 1,125 3,931 917 — 27,498 Equity $ 1,196,226 56,702 26,625 250,513 112,259 157,493 127,032 (34,291 ) 1,892,559
Schedule of Net Revenues Calculation	The following table presents the calculation of consolidated net revenues: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Revenues $ 2,035,579 $ 1,957,559 $ 4,055,630 $ 3,811,821 Expenses: Airfreight services 542,639 593,325 1,051,849 1,106,829 Ocean freight and ocean services 390,299 385,156 810,630 764,574 Customs brokerage and other services 440,946 336,532 877,342 662,034 Net revenues $ 661,695 $ 642,546 $ 1,315,809 $ 1,278,384

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease, Right-of-Use Asset	$ 377,423		$ 0
Operating Lease, Liability	377,043
Accounting Policies [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 13,391		$ 15,345
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease, Right-of-Use Asset		$ 343,000
Operating Lease, Liability		$ 340,000

Leases - Lease Cost (Detail)

Leases - Lease Cost (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Lessee Disclosure [Abstract]
Operating lease cost	$ 20,093	$ 40,048
Variable lease cost	6,483	12,877
Total lease cost	$ 26,576	$ 52,925

Leases - Maturities of Lease Li

Leases - Maturities of Lease Liabilities (Detail) $ in Thousands	Jun. 30, 2019USD ($)
Operating Lease Liabilities, Payments, Due, Rolling Maturity [Abstract]
2019	$ 38,857
2020	74,341
2021	64,607
2022	58,276
2023	49,930
Thereafter	169,715
Total minimum lease payments	455,726
Less imputed interest	78,683
Operating Lease, Liability	$ 377,043

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payment (Detail) $ in Thousands	Dec. 31, 2018USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019	$ 75,227
2020	62,974
2021	47,552
2022	38,352
2023	26,580
Thereafter	67,140
Operating Leases, Future Minimum Payments Due	$ 317,825

Leases Weighted-Average Remaini

Leases Weighted-Average Remaining Lease Term and Weighted-Average Discount (Detail)	Jun. 30, 2019
Weighted-average remaining lease term and weighted-average discount rate [Abstract]
Weighted-average remaining lease term (in years)	7 years 7 months 17 days
Weighted-average discount rate	4.96%

Leases - Other Information Rela

Leases - Other Information Related to Operating Leases (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Supplemental Cash Flow Information Related to Leases [Abstract]
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 43,398	$ 62,034
Cash paid for amounts included in the measurement of lease liabilities	$ 20,046	$ 39,292

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019USD ($)$ / sharesshares	Jun. 30, 2018USD ($)$ / sharesshares	Jun. 30, 2019USD ($)shares	Jun. 30, 2018USD ($)shares	Dec. 31, 2018shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock issued during period, shares, employee stock purchase plans	0	0	0	0
Stock compensation expense | $	$ 23,824	$ 18,002	$ 37,206	$ 29,269
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period	462,000	461,000
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period. Weighted average fair value | $ / shares	$ 75.73	$ 69.58
Number of common stock issued per unit based award upon vesting	1	1
Restricted Stock Units (RSUs) | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period	3 years	3 years
Directors Restricted Stock Plan 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period	24,000	25,000
Performance Shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period	96,000	18,000
Number of common stock issued per unit based award upon vesting	1	1
Maximum adjustment factor	2	2
Minimum adjustment factor	0.5	0.5
Minimum shares issued	0	0
Retirement Eligible Restricted Stock Unit (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock or unit expense | $	$ 5,000	$ 4,000	5,000	$ 4,000
Retirement Eligible Performance Stock Unit (PSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period					0
Stock compensation expense | $	$ 5,000		$ 5,000

Income Taxes Income Taxes - Add

Income Taxes Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Taxes [Line Items]
Income tax expense	$ 47,449	$ 48,958	$ 102,710	$ 110,514
Effective income tax rate reconciliation, percent	23.60%	25.80%	25.90%	28.50%
Global Intangible Low-Taxed Income
Income Taxes [Line Items]
Income tax expense	$ 0	$ 0	$ 0	$ 0

Basic and Diluted Earnings pe_3

Basic and Diluted Earnings per Share - Numerator and Denominator of the Basic and Diluted Per Share Computations for Earnings Attributable to Shareholders Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net Earnings Attributable to Shareholders
Basic earnings attributable to shareholders	$ 153,149	$ 140,605	$ 292,848	$ 276,297
Diluted earnings attributable to shareholders	$ 153,149	$ 140,605	$ 292,848	$ 276,297
Weighted Average Shares
Weighted average basic shares outstanding	171,003	174,754	171,425	175,324
Effect of dilutive potential common shares	3,463	3,849	3,528	3,796
Weighted average diluted shares outstanding	174,466	178,603	174,953	179,120
Earnings Per Share
Basic earnings attributable to shareholders per share	$ 0.90	$ 0.80	$ 1.71	$ 1.58
Diluted earnings attributable to shareholders per share	$ 0.88	$ 0.79	$ 1.67	$ 1.54

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - $ / shares shares in Thousands	May 07, 2019	May 08, 2018	Jun. 30, 2019	Jun. 30, 2018
Class of Stock [Line Items]
Expected common stock shares issued and outstanding			160,000
Date of declaration of dividends	May 7, 2019	May 8, 2018
Dividend declared per share	$ 0.50	$ 0.45
Date of dividend payment	Jun. 17, 2019	Jun. 15, 2018
Dividends payable to shareholders date of record	Jun. 3, 2019	Jun. 1, 2018
Discretionary Plan
Class of Stock [Line Items]
Shares repurchased			3,110	4,311
Average price per share			$ 73.45	$ 70.49
Non-Discretionary Plan
Class of Stock [Line Items]
Shares repurchased			88	1,411
Average price per share			$ 74.03	$ 72.21

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	$ 1,082,650	$ 923,735
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	1,083,076	924,195
Cash and Overnight Deposits | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	513,328	427,307
Cash and Overnight Deposits | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	513,328	427,307
Corporate Commercial Paper | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	530,565	467,300
Corporate Commercial Paper | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	530,991	467,760
Time Deposits | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	38,757	29,128
Time Deposits | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	$ 38,757	$ 29,128

Business Segment Information -

Business Segment Information - Financial Information Regarding Company's Operations by Geographic Area (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	$ 2,035,579	$ 1,957,559	$ 4,055,630	$ 3,811,821
Net revenues	[2]	661,695	642,546	1,315,809	1,278,384
Operating income		192,201	183,584	379,802	376,402
Identifiable assets at period end		3,646,990	3,132,832	3,646,990	3,132,832		$ 3,314,559
Capital expenditures		12,987	12,113	22,422	25,909
Depreciation and amortization		12,677	13,576	26,070	27,498
Equity		2,052,394	1,892,559	2,052,394	1,892,559	$ 2,125,434	$ 1,987,720	$ 1,982,266	$ 1,994,373
Intersegment Eliminations
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	(764)	(71,914)	(1,482)	(139,854)
Net revenues	[2]	(370)	(971)	(460)	(960)
Operating income		(6)	(3)	(14)	8
Identifiable assets at period end		(7,368)	(5,997)	(7,368)	(5,997)
Equity		(33,199)	(34,291)	(33,199)	(34,291)
Operating Segments | United States Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	681,076	598,076	1,340,859	1,161,826
Net revenues	[2]	294,983	271,880	587,412	549,065
Operating income		87,923	63,628	161,936	133,276
Identifiable assets at period end		1,819,718	1,488,060	1,819,718	1,488,060
Capital expenditures		8,985	6,032	15,900	9,203
Depreciation and amortization		7,687	8,447	15,909	17,212
Equity		1,303,381	1,196,226	1,303,381	1,196,226
Operating Segments | Other North America Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	85,537	84,244	176,947	164,331
Net revenues	[2]	35,201	34,749	70,370	65,196
Operating income		8,858	10,077	19,818	19,095
Identifiable assets at period end		176,151	153,827	176,151	153,827
Capital expenditures		768	2,191	996	3,719
Depreciation and amortization		459	473	926	871
Equity		83,417	56,702	83,417	56,702
Operating Segments | Latin America Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	38,757	42,618	72,936	78,727
Net revenues	[2]	16,714	15,923	31,777	30,668
Operating income		2,346	2,701	4,982	5,071
Identifiable assets at period end		73,197	54,186	73,197	54,186
Capital expenditures		145	167	238	672
Depreciation and amortization		380	395	812	763
Equity		31,014	26,625	31,014	26,625
Operating Segments | North Asia Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	621,951	680,227	1,254,804	1,316,816
Net revenues	[2]	134,397	140,583	268,604	277,791
Operating income		64,453	70,359	130,233	140,282
Identifiable assets at period end		580,311	540,954	580,311	540,954
Capital expenditures		300	559	644	1,343
Depreciation and amortization		1,384	1,303	2,791	2,679
Equity		282,192	250,513	282,192	250,513
Operating Segments | South Asia Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	181,380	179,528	358,559	354,678
Net revenues	[2]	48,893	44,886	96,262	89,292
Operating income		15,513	13,374	31,420	28,506
Identifiable assets at period end		193,771	157,479	193,771	157,479
Capital expenditures		428	695	604	1,024
Depreciation and amortization		496	542	1,032	1,125
Equity		107,229	112,259	107,229	112,259
Operating Segments | Europe Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	319,331	330,775	632,021	650,755
Net revenues	[2]	98,655	102,371	195,450	201,006
Operating income		9,315	16,958	23,267	36,236
Identifiable assets at period end		581,518	526,607	581,518	526,607
Capital expenditures		1,914	1,225	2,896	8,416
Depreciation and amortization		1,775	1,955	3,606	3,931
Equity		168,570	157,493	168,570	157,493
Operating Segments | Middle East Africa And India Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	108,311	114,005	220,986	224,542
Net revenues	[2]	33,222	33,125	66,394	66,326
Operating income		3,799	6,490	8,160	13,928
Identifiable assets at period end		229,692	217,716	229,692	217,716
Capital expenditures		447	1,244	1,144	1,532
Depreciation and amortization		496	461	994	917
Equity		$ 109,790	$ 127,032	$ 109,790	$ 127,032
[1]	In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment net revenues or operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change net revenues. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised.
[2]	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 _2

Business Segment Information - Net Revenues Calculation (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Schedule of Net Revenues Calculation [Line Items]
Revenues	[1]	$ 2,035,579	$ 1,957,559	$ 4,055,630	$ 3,811,821
Expenses [Abstract]
Net revenues	[2]	661,695	642,546	1,315,809	1,278,384
Airfreight services
Schedule of Net Revenues Calculation [Line Items]
Revenues		741,577	801,761	1,456,478	1,532,988
Expenses [Abstract]
Direct Operating Costs		542,639	593,325	1,051,849	1,106,829
Ocean freight and ocean services
Schedule of Net Revenues Calculation [Line Items]
Revenues		543,809	530,008	1,112,450	1,050,891
Expenses [Abstract]
Direct Operating Costs		390,299	385,156	810,630	764,574
Customs brokerage and other services
Schedule of Net Revenues Calculation [Line Items]
Revenues		750,193	625,790	1,486,702	1,227,942
Expenses [Abstract]
Direct Operating Costs		$ 440,946	$ 336,532	$ 877,342	$ 662,034
[1]	In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment net revenues or operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change net revenues. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised.
[2]	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.