Expeditors International of Washington (EXPD) 10-Q 6 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 04, 2019
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Trading Symbol	EXPD
Entity Registrant Name	EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
Entity Central Index Key	0000746515
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		170,301,245
Entity File Number	0-13468
Entity Tax Identification Number	91-1069248
Entity Address, Address Line One	1015 Third Avenue
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98104
City Area Code	206
Local Phone Number	674-3400
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, $0.01 par value
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	WA
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current Assets:
Cash and cash equivalents	$ 1,215,970	$ 923,735
Accounts receivable, less allowance for doubtful accounts of $11,853 at September 30, 2019 and $15,345 at December 31, 2018	1,319,032	1,581,530
Deferred contract costs	130,690	159,510
Other	103,521	70,041
Total current assets	2,769,213	2,734,816
Property and equipment, less accumulated depreciation and amortization of $468,059 at September 30, 2019 and $446,977 at December 31, 2018	494,153	504,105
Operating lease right-of-use assets	374,231	0
Goodwill	7,927	7,927
Deferred federal and state income taxes, net	44,351	40,465
Other assets, net	16,578	27,246
Total assets	3,706,453	3,314,559
Current Liabilities:
Accounts payable	744,002	902,259
Accrued expenses, primarily salaries and related costs	207,752	215,813
Contract liabilities	152,717	190,343
Current portion of operating lease liabilities	61,842	0
Federal, state and foreign income taxes	17,273	18,424
Total current liabilities	1,183,586	1,326,839
Noncurrent portion of operating lease liabilities	313,580	0
Commitments and contingencies	0	0
Shareholders’ Equity:
Preferred stock, none issued	0	0
Common stock, par value $0.01 per share. Issued and outstanding: 170,243 shares at September 30, 2019 and 171,582 shares at December 31, 2018	1,702	1,716
Additional paid-in capital	23,301	1,896
Retained earnings	2,301,156	2,088,707
Accumulated other comprehensive loss	(118,774)	(105,481)
Total shareholders’ equity	2,207,385	1,986,838
Noncontrolling interest	1,902	882
Total equity	2,209,287	1,987,720
Total liabilities and equity	$ 3,706,453	$ 3,314,559

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 11,853	$ 15,345
Property and equipment, accumulated depreciation	$ 468,059	$ 446,977
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	170,243	171,582
Common stock, shares outstanding	170,243	171,582

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	$ 2,074,855	$ 2,090,947	$ 6,130,485	$ 5,902,768
Operating Expenses:
Direct Operating Costs	[2]	1,400,499	1,429,633	4,140,320	3,963,070
Salaries and related		356,331	351,577	1,069,592	1,042,420
Rent and occupancy		41,987	38,202	124,407	113,186
Depreciation and amortization		12,386	13,335	38,456	40,833
Selling and promotion		10,133	10,632	32,852	32,385
Other		46,969	44,414	138,506	131,318
Total operating expenses		1,868,305	1,887,793	5,544,133	5,323,212
Operating income		206,550	203,154	586,352	579,556
Other Income (Expense):
Interest income		5,501	4,704	18,123	14,171
Other, net		1,895	566	5,822	2,357
Other income (expense), net		7,396	5,270	23,945	16,528
Earnings before income taxes		213,946	208,424	610,297	596,084
Income tax expense		53,319	45,357	156,029	155,871
Net earnings		160,627	163,067	454,268	440,213
Less net earnings attributable to the noncontrolling interest		406	375	1,199	1,224
Net earnings attributable to shareholders		$ 160,221	$ 162,692	$ 453,069	$ 438,989
Diluted earnings attributable to shareholders per share		$ 0.92	$ 0.92	$ 2.60	$ 2.46
Basic earnings attributable to shareholders per share		$ 0.94	$ 0.94	$ 2.65	$ 2.51
Weighted average diluted shares outstanding		173,483	177,173	174,463	178,447
Weighted average basic shares outstanding		170,415	173,394	171,084	174,675
Airfreight services
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		$ 715,450	$ 833,338	$ 2,171,928	$ 2,366,326
Operating Expenses:
Direct Operating Costs		522,868	620,554	1,574,717	1,727,383
Ocean freight and ocean services
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		585,374	585,810	1,697,824	1,636,701
Operating Expenses:
Direct Operating Costs		424,215	435,313	1,234,845	1,199,887
Customs brokerage and other services
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		774,031	671,799	2,260,733	1,899,741
Operating Expenses:
Direct Operating Costs		$ 453,416	$ 373,766	$ 1,330,758	$ 1,035,800
[1]	In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation and other expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change operating income. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised.
[2]	Directly related cost of transportation and other expenses totals operating expenses from airfreight services, ocean freight and ocean services and customs brokerage and other services as shown in the condensed consolidated statements of earnings.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 160,627	$ 163,067	$ 454,268	$ 440,213
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of tax of $5,803 and $2,904 for the three months ended September 30, 2019 and 2018 and $5,364 and $12,563 for the nine months ended September 30, 2019 and 2018	(14,603)	(10,929)	(14,007)	(28,129)
Reclassification adjustments for foreign currency realized losses, net of tax of $145 for the nine months ended September 30, 2019	0	0	535	0
Other comprehensive loss	(14,603)	(10,929)	(13,472)	(28,129)
Comprehensive income	146,024	152,138	440,796	412,084
Less comprehensive income (loss) attributable to the noncontrolling interest	481	(167)	1,020	230
Comprehensive income attributable to shareholders	$ 145,543	$ 152,305	$ 439,776	$ 411,854

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Other Comprehensive Income Loss Tax Parenthetical Disclosures [Abstract]
Foreign currency translation adjustments, tax	$ (5,803)	$ (2,904)	$ (5,364)	$ (12,563)
Reclassification adjustments for foreign currency realized losses, tax			$ 145

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Operating Activities:
Net earnings	$ 160,627	$ 163,067	$ 454,268	$ 440,213
Adjustments to reconcile net earnings to net cash from operating activities:
Provisions for losses on accounts receivable	757	1,969	453	2,232
Deferred income tax benefit	(5,822)	(23,610)	(17)	(17,522)
Stock compensation expense	12,155	13,902	49,361	43,171
Depreciation and amortization	12,386	13,335	38,456	40,833
Other, net	652	666	812	770
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable	43,885	(210,092)	246,175	(156,321)
(Decrease) increase in accounts payable and accrued expenses	(58,816)	115,629	(141,199)	127,860
Decrease (increase) in deferred contract costs	10,301	(34,623)	28,550	(51,235)
(Decrease) increase in contract liabilities	(13,211)	36,256	(36,933)	49,149
(Decrease) increase in income taxes payable, net	(671)	9,292	(33,284)	(9,258)
(Decrease) increase in other, net	(744)	930	47	862
Net cash from operating activities	161,499	86,721	606,689	470,754
Investing Activities:
Purchase of property and equipment	(15,521)	(11,733)	(37,943)	(37,642)
Other, net	232	1,109	1,525	(886)
Net cash from investing activities	(15,289)	(10,624)	(36,418)	(38,528)
Financing Activities:
Proceeds from issuance of common stock	60,713	47,806	120,190	169,566
Repurchases of common stock	(61,999)	(147,828)	(296,922)	(555,760)
Dividends Paid			(85,184)	(79,180)
Payments for taxes related to net share settlement of equity awards			(6,674)	(3,215)
Distributions to noncontrolling interest		(633)		(633)
Purchase of noncontrolling interest		(613)		(613)
Net cash from financing activities	(1,286)	(101,268)	(268,590)	(469,835)
Effect of exchange rate changes on cash and cash equivalents	(11,604)	(5,071)	(9,446)	(22,878)
Change in cash and cash equivalents	133,320	(30,242)	292,235	(60,487)
Cash and cash equivalents at beginning of period	1,082,650	1,020,854	923,735	1,051,099
Cash and cash equivalents at end of period	1,215,970	990,612	1,215,970	990,612
Taxes Paid:
Income taxes	$ 61,201	$ 59,313	$ 196,169	$ 183,444

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Total shareholders' equity	Noncontrolling interest
Balance at Dec. 31, 2017	$ 1,994,373	$ 1,764	$ 546	$ 2,063,512	$ (73,964)	$ 1,991,858	$ 2,515
Balance (in shares) at Dec. 31, 2017		176,374
Increase (Decrease) in Equity [Roll Forward]
Exercise of stock options and release of restricted shares	133,060	$ 33	133,027			133,060
Exercise of stock options and release of restricted shares (in shares)		3,288
Issuance of shares under stock purchase plan	33,292	$ 7	33,285			33,292
Issuance of shares under stock purchase plan (in shares)		666
Shares repurchased under provisions of stock repurchase plan	(555,760)	$ (78)	(208,266)	(347,416)		(555,760)
Shares repurchased under provisions of stock repurchase plans (in shares)		(7,764)
Stock compensation expense	43,171		43,171			43,171
Net earnings	440,213			438,989		438,989	1,224
Other comprehensive income (loss)	(28,129)				(27,134)	(27,134)	(995)
Dividends paid	(79,180)		159	(79,339)		(79,180)
Purchase of noncontrolling interest	(613)		(90)			(90)	(523)
Distributions to noncontrolling interest	(633)						(633)
Balance at Sep. 30, 2018	1,957,332	$ 1,726	1,832	2,053,389	(101,098)	1,955,849	1,483
Balance (in shares) at Sep. 30, 2018		172,564
Balance at Jun. 30, 2018	1,892,559	$ 1,736	1,607	1,977,121	(90,712)	1,889,752	2,807
Balance (in shares) at Jun. 30, 2018		173,577
Increase (Decrease) in Equity [Roll Forward]
Exercise of stock options and release of restricted shares	14,515	$ 3	14,512			14,515
Exercise of stock options and release of restricted shares (in shares)		332
Issuance of shares under stock purchase plan	33,292	$ 7	33,285			33,292
Issuance of shares under stock purchase plan (in shares)		666
Shares repurchased under provisions of stock repurchase plan	(147,828)	$ (20)	(61,384)	(86,424)		(147,828)
Shares repurchased under provisions of stock repurchase plans (in shares)		(2,011)
Stock compensation expense	13,902		13,902			13,902
Net earnings	163,067			162,692		162,692	375
Other comprehensive income (loss)	(10,929)				(10,386)	(10,386)	(543)
Purchase of noncontrolling interest	(613)		(90)			(90)	(523)
Distributions to noncontrolling interest	(633)						(633)
Balance at Sep. 30, 2018	1,957,332	$ 1,726	1,832	2,053,389	(101,098)	1,955,849	1,483
Balance (in shares) at Sep. 30, 2018		172,564
Increase (Decrease) in Equity [Roll Forward]
Cumulative effect of accounting change	(22,462)			(22,357)		(22,357)	(105)
Balance at Dec. 31, 2018	$ 1,987,720	$ 1,716	1,896	2,088,707	(105,481)	1,986,838	882
Balance (in shares) at Dec. 31, 2018	171,582	171,582
Increase (Decrease) in Equity [Roll Forward]
Exercise of stock options and release of restricted shares	$ 75,641	$ 22	75,619			75,641
Exercise of stock options and release of restricted shares (in shares)		2,166
Issuance of shares under stock purchase plan	37,875	$ 6	37,869			37,875
Issuance of shares under stock purchase plan (in shares)		585
Shares repurchased under provisions of stock repurchase plan	(296,922)	$ (42)	(141,847)	(155,033)		(296,922)
Shares repurchased under provisions of stock repurchase plans (in shares)		(4,090)
Stock compensation expense	49,361		49,361			49,361
Net earnings	454,268			453,069		453,069	1,199
Other comprehensive income (loss)	(13,472)				(13,293)	(13,293)	(179)
Dividends paid	(85,184)		403	(85,587)		(85,184)
Balance at Sep. 30, 2019	$ 2,209,287	$ 1,702	23,301	2,301,156	(118,774)	2,207,385	1,902
Balance (in shares) at Sep. 30, 2019	170,243	170,243
Balance at Jun. 30, 2019	$ 2,052,394	$ 1,701	12,433	2,140,935	(104,096)	2,050,973	1,421
Balance (in shares) at Jun. 30, 2019		170,040
Increase (Decrease) in Equity [Roll Forward]
Exercise of stock options and release of restricted shares	22,838	$ 5	22,833			22,838
Exercise of stock options and release of restricted shares (in shares)		510
Issuance of shares under stock purchase plan	37,875	$ 6	37,869			37,875
Issuance of shares under stock purchase plan (in shares)		585
Shares repurchased under provisions of stock repurchase plan	(61,999)	$ (10)	(61,989)			(61,999)
Shares repurchased under provisions of stock repurchase plans (in shares)		(892)
Stock compensation expense	12,155		12,155			12,155
Net earnings	160,627			160,221		160,221	406
Other comprehensive income (loss)	(14,603)				(14,678)	(14,678)	75
Balance at Sep. 30, 2019	$ 2,209,287	$ 1,702	$ 23,301	$ 2,301,156	$ (118,774)	$ 2,207,385	$ 1,902
Balance (in shares) at Sep. 30, 2019	170,243	170,243

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Statement Of Stockholders Equity [Abstract]
Dividends paid, per share	$ 0.50	$ 0.45

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies A. Basis of Presentation Expeditors International of Washington, Inc. (the Company) is a non-asset based provider of global logistics services operating through a worldwide network of offices and exclusive or non-exclusive agents. The Company’s customers include retailing and wholesaling, electronics, industrial and manufacturing companies around the world. The condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. As a result, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) have been condensed or omitted. The Company believes that the disclosures made are adequate to make the information presented not misleading. The condensed consolidated financial statements reflect all adjustments, consisting of normal recurring items, which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Form 10-K as filed with the Securities and Exchange Commission on February 22, 2019. All significant intercompany accounts and transactions have been eliminated in consolidation. All dollar amounts in the notes are presented in thousands except for per share data or unless otherwise specified. B. Revenue Recognition The Company derives its revenues by entering into agreements that are generally comprised of a single performance obligation, which is that freight is shipped for and received by the customer. The Company's three principal services are the revenue categories presented in the consolidated statements of earnings: 1) airfreight services, 2) ocean freight and ocean services, and 3) customs brokerage and other services. The Company typically satisfies its performance obligations as services are rendered over time. A typical shipment would include services rendered at origin, such as pick-up and delivery to port, freight services from origin to destination port and destination services, such as customs clearance and final delivery. The Company measures the performance of its obligations as services are completed over the life of a shipment, including services at origin, freight and destination. The Company fulfills nearly all of its performance obligations within a one to two month-period and contracts with customers have an original expected duration of less than one year. The Company satisfied nearly all performance obligations for the contract liabilities recorded as of June 30, 2019. In 2019, the Company revised its presentation for revenue transfers between its geographic operating segments and services rendered at the destination, which moved certain revenues and directly related operating expenses for air and ocean transactions to destination services within customs brokerage and other services. These changes better align revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased revenues and directly related operating expenses in customs brokerage and other services but did not change operating income. The impact on reported consolidated and segment total revenues and expenses for these changes was immaterial and the prior year presentation has not been revised. C. Leases Effective January 1, 2019, the Company adopted new lease accounting guidance using a modified retrospective approach and recognizing a right-of-use (ROU) asset and lease liability on the balance sheet. On January 1, 2019, ROU assets and lease liabilities were recorded for all existing leases exceeding one-year terms and were measured at the present value of lease payments over the remaining lease term. The adoption of this accounting standard resulted in recording ROU assets and lease liabilities for operating leases of $343 million and $340 million, respectively, as of January 1, 2019. The adoption of this standard had no impact on retained earnings on the condensed consolidated balance sheet. In recording the ROU asset and lease liability, the Company elected to apply the following practical expedients: • Package of practical expedients not to reassess: ◦ Whether a contract is or contains a lease, ◦ Historical lease classification, and ◦ Initial direct costs. • Use of hindsight when determining the lease term. Additionally, the Company has elected to apply the short-term lease exemption for leases with a non-cancelable period of twelve months or less and has chosen not to separate nonlease components from lease components and instead to account for each as a single lease component. The Company determines if an arrangement is a lease at inception. ROU assets represent the Company's right to use an underlying asset for the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease. All ROU assets and lease liabilities are recognized at the commencement date at the present value of lease payments over the lease term. ROU assets are adjusted for lease incentives and initial direct costs. The lease term includes renewal options exercisable at the Company's sole discretion when the Company is reasonably certain to exercise that option. As the Company's leases generally do not have an implicit rate, the Company uses an estimated incremental borrowing rate based on market information available at the commencement date to determine the present value. Certain of our leases include variable payments, which may vary based upon changes in facts or circumstances after the start of the lease. The Company excludes variable payments from lease ROU assets and lease liabilities, to the extent not considered fixed, and instead expense variable payments as incurred. Lease expense is recognized on a straight-line basis over the lease term and is included in rent and occupancy expenses on the condensed consolidated statement of earnings. D. Accounts Receivable The Company maintains an allowance for doubtful accounts, which is reviewed at least monthly for estimated losses resulting from the inability of its customers to make required payments for services and advances. Additional allowances may be necessary in the future if the ability of customers to pay deteriorates. The Company has recorded an allowance for doubtful accounts in the amounts of $11,853 Additions and write-offs have not been significant in the periods presented. E. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. The Company uses estimates primarily in the following areas: accounts receivable valuation, accrual of costs related to ancillary services the Company provides, accrual of liabilities for the portion of the related exposure that the Company has self-insured, accrual of various tax liabilities including estimates associated with the U.S. enacted Tax Cuts and Jobs Act (the 2017 Tax Act), accrual of loss contingencies, calculation of share-based compensation expense and estimates related to determining the lease term and discount rate when measuring ROU assets and lease liabilities. Actual results could be materially different from the estimated provisions and accruals recorded. F. Recent Accounting Pronouncement In June 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), which amends existing guidance for the accounting of credit losses on financial instruments. Under the ASU, the Company will record a valuation allowance for credit losses that are expected to be incurred over the financial asset’s contractual term. This standard will be effective for the Company on January 1, 2020 and is not expected to have a material effect on the consolidated financial statements as the new credit loss model will primarily apply to the Company's accounts receivable, which are of short duration and for which the Company has not historically experienced significant credit losses. However, the Company is still evaluating the impact of the new prescribed model compared to its current methodology.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Lessee Disclosure [Abstract]
Lessee, Operating Leases	Note 2. Leases The Company enters into lease agreements primarily for office and warehouse space in all districts where it conducts business. As of September 30, 2019, all of the Company's leases are operating leases. Lease cost for the three and nine months ended September 30, 2019 are all recorded under rent and occupancy expenses on the condensed consolidated statement of earnings and are comprised of the following: Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating lease cost $ 20,784 $ 60,832 Variable lease cost 6,990 19,867 Total lease cost $ 27,774 $ 80,699 Variable lease cost includes short-term lease expenses, which are insignificant. Maturities of lease liabilities as of September 30, 2019 are as follows: 2019 $ 19,112 2020 77,416 2021 67,505 2022 61,044 2023 52,427 Thereafter 174,492 Total minimum lease payments 451,996 Less imputed interest 76,574 Lease liability $ 375,422 At December 31, 2018, the last balance sheet presented before the adoption of the new accounting standard Topic 842 Leases 2019 $ 75,227 2020 62,974 2021 47,552 2022 38,352 2023 26,580 Thereafter 67,140 $ 317,825 The weighted-average remaining lease term and weighted-average discount rate as of September 30, 2019 are as follows: Weighted-average remaining lease term (in years) 7.47 Weighted-average discount rate 4.94 % Other information related to the Company's operating leases are as follows: Three months ended September 30, 2019 Nine months ended September 30, 2019 Right-of-use assets obtained in exchange for new operating lease liabilities $ 14,630 $ 76,664 Cash paid for amounts included in the measurement of lease liabilities $ 19,642 $ 58,934

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2019
Share Based Compensation [Abstract]
Share-Based Compensation	Note 3. Share-Based Compensation The Company has historically granted the majority of its share-based awards during the second quarter of each fiscal year. During the nine months ended September 30, 2019 and 2018, the Company awarded 462 $75.73 3 years The Company also awarded 96 RSUs and PSUs granted under the 2017 Plan have dividend equivalent rights, which entitle holders of the awards to the same dividend value per share as holders of common stock. Dividend equivalent rights are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs and PSUs and are accumulated and paid in shares when the underlying awards The grant of employee stock purchase rights and the issuance of shares under the employee stock purchase plan are made in the third quarter of each fiscal year and 585 and 666 shares were issued in the three and nine months ended September 30, 2019 and 2018, respectively. The fair value of the employee stock purchase rights granted was $17.03 and $17.49 per share in 2019 and 2018, respectively. The Company recognizes stock compensation expense based on the fair value of awards granted to employees and directors under the Company’s omnibus incentive, stock option, director restricted stock and employee stock purchase rights plans. This expense, adjusted for expected forfeitures, is recognized in net earnings on a straight-line basis over the service periods as salaries and related costs on the condensed consolidated statements of earnings. RSUs and PSUs awarded to certain employees meeting specific retirement eligibility criteria at the time of grant are expensed immediately as there is no substantive service period associated with those awards. For RSU awards meeting retirement eligibility criteria, approximately $5,000 of stock compensation expense was recognized during the nine months ended September 30, 2019, and approximately $4,000 of stock compensation expense was recognized during 2018. For PSU awards meeting retirement eligibility criteria, approximately $5,000

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	Note 4. Income Taxes In December 2017, the 2017 Tax Act was enacted in the United States. Beginning January 1, 2018, foreign earnings of the Company's international subsidiaries are generally exempt from U.S. Federal income tax upon repatriation. Notwithstanding these changes, certain withholding taxes and foreign exchange gains and losses will continue to be applicable upon the repatriation of foreign earnings. During 2018 and 2019, the Internal Revenue Service (IRS) and the U.S. Department of Treasury (Treasury) issued additional guidelines and clarifying regulations related to the implementation of the 2017 Tax Act. The Company expects that additional guidance will continue to be issued in future periods. As this guidance is issued, the Company will continue to evaluate the information to determine whether any additional adjustments to its tax provisions are required. The 2017 Tax Act included provisions for Global Intangible Low-Taxed Income (GILTI) under which taxes on foreign income are imposed on the excess of a deemed return on tangible assets of certain foreign subsidiaries and for Base Erosion and Anti-Abuse Tax (BEAT) under which taxes are imposed on certain base eroding payments to affiliated foreign companies. The Company treats BEAT and GILTI as components of current income tax expense. Income tax expense for the three and nine months ended September 30, 2019 and 2018 had no significant tax expense related BEAT or GILTI. In February 2018, the FASB issued amended guidance for reporting comprehensive income to reflect changes resulting from the 2017 Tax Act. The amendment, which had an effective date of January 1, 2019, provided the option to reclassify stranded tax effects resulting from the 2017 Tax Act within accumulated other comprehensive income (AOCI) to retained earnings. The Company elected to not reclassify stranded income tax effects from AOCI to retained earnings, including those related to implementation of the 2017 Tax Act. Our consolidated effective income tax rate was 24.9% and 25.6% for the three and nine months ended September 30, 2019, respectively, as compared to 21.8% and 26.1% for the comparable periods in 2018. The effect of higher average tax rates of our international subsidiaries, when compared to U.S. federal and state tax rates, were partially offset by U.S. foreign tax credits and U.S. income tax deductions for Foreign-derived intangible income (FDII). In addition, the three month period ended 2018 benefited from required discrete adjustments as a result of interpretations issued related to the 2017 Tax Act for foreign tax credits earned as a result of withholding taxes paid on repatriated foreign earnings totaling $7 million and a state income tax refund totaling $4 million that settled during the quarter in 2018. As discussed above, some elements of the recorded impacts of the 2017 Tax Act could be impacted by further legislative action as well as additional interpretations and guidance issued by the IRS or Treasury. As a result, the amount of income tax recorded in the future may differ, possibly materially. For further information and discussion of the potential impact of the 2017 Tax Act, refer to Note 5 to the consolidated financial statements in the Company's 2018 Annual Report on Form 10-K.

Basic and Diluted Earnings per

Basic and Diluted Earnings per Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Basic and Diluted Earnings per Share	Note 5. Basic and Diluted Earnings per Share Diluted earnings attributable to shareholders per share is computed using the weighted average number of common shares and dilutive potential common shares outstanding. Dilutive potential shares represent outstanding stock options, including purchase options under the Company's employee stock purchase plan, and unvested restricted stock units. Basic earnings attributable to shareholders per share is calculated using the weighted average number of common shares outstanding without taking into consideration dilutive potential common shares outstanding. The following table reconciles the numerator and the denominator of the basic and diluted per share computations for earnings attributable to shareholders: Three months ended September 30, Net earnings attributable to shareholders Weighted average shares Earnings per share 2019 Basic earnings attributable to shareholders $ 160,221 170,415 $ 0.94 Effect of dilutive potential common shares — 3,068 — Diluted earnings attributable to shareholders $ 160,221 173,483 $ 0.92 2018 Basic earnings attributable to shareholders $ 162,692 173,394 $ 0.94 Effect of dilutive potential common shares — 3,779 — Diluted earnings attributable to shareholders $ 162,692 177,173 $ 0.92 Nine months ended September 30, Net earnings attributable to shareholders Weighted average shares Earnings per share 2019 Basic earnings attributable to shareholders $ 453,069 171,084 $ 2.65 Effect of dilutive potential common shares — 3,379 — Diluted earnings attributable to shareholders $ 453,069 174,463 $ 2.60 2018 Basic earnings attributable to shareholders $ 438,989 174,675 $ 2.51 Effect of dilutive potential common shares — 3,772 — Diluted earnings attributable to shareholders $ 438,989 178,447 $ 2.46

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2019
Stockholders Equity Note [Abstract]
Shareholders' Equity	Note 6. Shareholders' Equity The Company has a Discretionary Stock Repurchase Plan approved by the Board of Directors that authorizes management to reduce issued and outstanding common stock down to 160,000 shares. During the nine months ended September 30, 2019, 4,002 shares were repurchased at an average price of $72.57 The Company also had a Non-Discretionary Stock Repurchase Plan to repurchase shares from the proceeds of stock option exercises and employee stock purchases. As of March 31, 2019, all shares authorized under this plan have been repurchased. During the nine months ended September 30, 2019, 88 shares were repurchased at an average price of $74.03, compared to 2,386 at an average price of $72.72 per share during the same period in 2018. Accumulated other comprehensive loss consisted entirely of foreign currency translation adjustments, net of related income tax effects, for all the periods presented. On May 7, 2019, the Board of Directors declared a semi-annual dividend of $0.50 per share payable on June 17, 2019 to shareholders of record as of June 3, 2019. On May 8, 2018, the Board of Directors declared a semi-annual dividend of $0.45 per share paid on June 15, 2018 to shareholders of record as of June 1, 2018. Subsequent to the end of third quarter 2019, on November 4, 2019, the Board of Directors declared a semi-annual dividend of $0.50 per share payable on December 16, 2019 to shareholders of record as of December 2, 2019.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 7. Fair Value of Financial Instruments The Company’s financial instruments, other than cash, consist primarily of cash equivalents, accounts receivable, accounts payable and accrued expenses. The carrying value of these financial instruments approximates their fair value. All highly liquid investments with a maturity of three months or less at date of purchase are considered to be cash equivalents. Cash and cash equivalents consist of the following: September 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Cash and Cash Equivalents: Cash and overnight deposits $ 398,235 $ 398,235 $ 427,307 $ 427,307 Corporate commercial paper 788,060 788,708 467,300 467,760 Time deposits 29,675 29,675 29,128 29,128 Total cash and cash equivalents $ 1,215,970 $ 1,216,618 $ 923,735 $ 924,195 The fair value of corporate commercial paper and time deposits is based on the use of market interest rates for identical or similar assets (Level 2 fair value measurement).

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2019
Loss Contingency [Abstract]
Contingencies	Note 8. Contingencies The Company is involved in claims, lawsuits, government investigations and other legal matters that arise in the ordinary course of business and are subject to inherent uncertainties. Currently, in management's opinion and based upon advice from legal advisors, none of these matters are expected to have a significant effect on the Company's operations, cash flows or financial position. As of September 30, 2019, the amounts accrued for these claims, lawsuits, government investigations and other legal matters are not significant to the Company's operations, cash flows or financial position. At this time, the Company is unable to estimate any additional loss or range of reasonably possible losses, if any, beyond the amounts recorded, that might result from the resolution of these matters.

Business Segment Information

Business Segment Information	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Business Segment Information	Note 9. Business Segment Information The Company is organized functionally in geographic operating segments. Accordingly, management focuses its attention on revenues, directly related cost of transportation and other expenses for each of the Company’s three primary sources of revenue, salaries and other operating expenses, operating income, identifiable assets, capital expenditures and equity generated in each of these geographical areas when evaluating the effectiveness of geographic management. Transactions among the Company’s various offices are conducted using the same arms-length pricing methodologies the Company uses when its offices transact business with independent agents. Certain costs are allocated among the segments based on the relative value of the underlying services, which can include allocation based on actual costs incurred or estimated cost plus a profit margin. Financial information regarding the Company’s operations by geographic area is as follows: UNITED STATES OTHER NORTH AMERICA LATIN AMERICA NORTH ASIA SOUTH ASIA EUROPE MIDDLE EAST, AFRICA AND INDIA ELIMI- NATIONS CONSOLI- DATED For the three months ended September 30, 2019: Revenues 1 $ 692,229 88,088 38,341 624,351 196,569 320,769 115,397 (889 ) 2,074,855 Directly related cost of transportation and other expenses 2 $ 389,254 51,420 22,990 489,195 145,345 221,149 81,592 (446 ) 1,400,499 Salaries and other operating expenses 3 $ 210,767 25,731 14,547 70,410 32,482 86,156 28,151 (438 ) 467,806 Operating income $ 92,208 10,937 804 64,746 18,742 13,464 5,654 (5 ) 206,550 Identifiable assets at period end $ 2,059,345 128,336 72,029 489,322 164,976 563,289 226,657 2,499 3,706,453 Capital expenditures $ 7,644 513 833 523 631 5,119 258 — 15,521 Equity $ 1,578,682 60,526 27,217 216,061 77,733 169,450 111,355 (31,737 ) 2,209,287 For the three months ended September 30, 2018: Revenues 1 $ 629,043 92,875 43,443 748,589 205,392 327,212 118,047 (73,654 ) 2,090,947 Directly related cost of transportation and other expenses 2 $ 345,236 58,464 27,635 601,699 158,226 227,418 83,992 (73,037 ) 1,429,633 Salaries and other operating expenses 3 $ 204,240 23,935 13,399 74,067 31,623 84,136 27,384 (624 ) 458,160 Operating income $ 79,567 10,476 2,409 72,823 15,543 15,658 6,671 7 203,154 Identifiable assets at period end $ 1,694,556 174,402 53,322 540,465 156,887 508,855 212,817 (6,504 ) 3,334,800 Capital expenditures $ 6,889 301 227 1,280 910 751 1,375 — 11,733 Equity $ 1,334,952 66,399 25,663 197,939 86,048 157,973 119,718 (31,360 ) 1,957,332 UNITED STATES OTHER NORTH AMERICA LATIN AMERICA NORTH ASIA SOUTH ASIA EUROPE MIDDLE EAST, AFRICA AND INDIA ELIMI- NATIONS CONSOLI- DATED For the nine months ended September 30, 2019: Revenues 1 $ 2,033,088 265,035 111,277 1,879,155 555,128 952,790 336,383 (2,371 ) 6,130,485 Directly related cost of transportation and other expenses 2 $ 1,142,701 157,997 64,149 1,475,395 407,642 657,720 236,184 (1,468 ) 4,140,320 Salaries and other operating expenses 3 $ 636,243 76,283 41,342 208,781 97,324 258,339 86,385 (884 ) 1,403,813 Operating income $ 254,144 30,755 5,786 194,979 50,162 36,731 13,814 (19 ) 586,352 Identifiable assets at period end $ 2,059,345 128,336 72,029 489,322 164,976 563,289 226,657 2,499 3,706,453 Capital expenditures $ 23,544 1,509 1,071 1,167 1,235 8,015 1,402 — 37,943 Equity $ 1,578,682 60,526 27,217 216,061 77,733 169,450 111,355 (31,737 ) 2,209,287 For the nine months ended September 30, 2018: Revenues 1 $ 1,790,869 257,206 122,170 2,065,405 560,070 977,967 342,589 (213,508 ) 5,902,768 Directly related cost of transportation and other expenses 2 $ 957,997 157,599 75,694 1,640,724 423,612 677,167 242,208 (211,931 ) 3,963,070 Salaries and other operating expenses 3 $ 620,029 70,036 38,996 211,576 92,409 248,906 79,782 (1,592 ) 1,360,142 Operating income $ 212,843 29,571 7,480 213,105 44,049 51,894 20,599 15 579,556 Identifiable assets at period end $ 1,694,556 174,402 53,322 540,465 156,887 508,855 212,817 (6,504 ) 3,334,800 Capital expenditures $ 16,092 4,020 899 2,623 1,934 9,167 2,907 — 37,642 Equity $ 1,334,952 66,399 25,663 197,939 86,048 157,973 119,718 (31,360 ) 1,957,332 1 In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation and other expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change operating income. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised. 2 Directly related cost of transportation and other expenses totals operating expenses from airfreight services, ocean freight and ocean services and customs brokerage and other services as shown in the condensed consolidated statements of earnings. 3 Salaries and other operating expenses totals salaries and related, rent and occupancy, depreciation and amortization, selling and promotion and other as shown in the condensed consolidated statements of earnings.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation, Policy	The condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. As a result, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) have been condensed or omitted. The Company believes that the disclosures made are adequate to make the information presented not misleading. The condensed consolidated financial statements reflect all adjustments, consisting of normal recurring items, which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Form 10-K as filed with the Securities and Exchange Commission on February 22, 2019. All significant intercompany accounts and transactions have been eliminated in consolidation. All dollar amounts in the notes are presented in thousands except for per share data or unless otherwise specified.
Revenue Recognition, Policy	The Company derives its revenues by entering into agreements that are generally comprised of a single performance obligation, which is that freight is shipped for and received by the customer. The Company's three principal services are the revenue categories presented in the consolidated statements of earnings: 1) airfreight services, 2) ocean freight and ocean services, and 3) customs brokerage and other services. The Company typically satisfies its performance obligations as services are rendered over time. A typical shipment would include services rendered at origin, such as pick-up and delivery to port, freight services from origin to destination port and destination services, such as customs clearance and final delivery. The Company measures the performance of its obligations as services are completed over the life of a shipment, including services at origin, freight and destination. The Company fulfills nearly all of its performance obligations within a one to two month-period and contracts with customers have an original expected duration of less than one year. The Company satisfied nearly all performance obligations for the contract liabilities recorded as of June 30, 2019. In 2019, the Company revised its presentation for revenue transfers between its geographic operating segments and services rendered at the destination, which moved certain revenues and directly related operating expenses for air and ocean transactions to destination services within customs brokerage and other services. These changes better align revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased revenues and directly related operating expenses in customs brokerage and other services but did not change operating income. The impact on reported consolidated and segment total revenues and expenses for these changes was immaterial and the prior year presentation has not been revised.
Leases, Policy	Effective January 1, 2019, the Company adopted new lease accounting guidance using a modified retrospective approach and recognizing a right-of-use (ROU) asset and lease liability on the balance sheet. On January 1, 2019, ROU assets and lease liabilities were recorded for all existing leases exceeding one-year terms and were measured at the present value of lease payments over the remaining lease term. The adoption of this accounting standard resulted in recording ROU assets and lease liabilities for operating leases of $343 million and $340 million, respectively, as of January 1, 2019. The adoption of this standard had no impact on retained earnings on the condensed consolidated balance sheet. In recording the ROU asset and lease liability, the Company elected to apply the following practical expedients: • Package of practical expedients not to reassess: ◦ Whether a contract is or contains a lease, ◦ Historical lease classification, and ◦ Initial direct costs. • Use of hindsight when determining the lease term. Additionally, the Company has elected to apply the short-term lease exemption for leases with a non-cancelable period of twelve months or less and has chosen not to separate nonlease components from lease components and instead to account for each as a single lease component. The Company determines if an arrangement is a lease at inception. ROU assets represent the Company's right to use an underlying asset for the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease. All ROU assets and lease liabilities are recognized at the commencement date at the present value of lease payments over the lease term. ROU assets are adjusted for lease incentives and initial direct costs. The lease term includes renewal options exercisable at the Company's sole discretion when the Company is reasonably certain to exercise that option. As the Company's leases generally do not have an implicit rate, the Company uses an estimated incremental borrowing rate based on market information available at the commencement date to determine the present value. Certain of our leases include variable payments, which may vary based upon changes in facts or circumstances after the start of the lease. The Company excludes variable payments from lease ROU assets and lease liabilities, to the extent not considered fixed, and instead expense variable payments as incurred. Lease expense is recognized on a straight-line basis over the lease term and is included in rent and occupancy expenses on the condensed consolidated statement of earnings.
Accounts Receivable, Policy	The Company maintains an allowance for doubtful accounts, which is reviewed at least monthly for estimated losses resulting from the inability of its customers to make required payments for services and advances. Additional allowances may be necessary in the future if the ability of customers to pay deteriorates. The Company has recorded an allowance for doubtful accounts in the amounts of $11,853 Additions and write-offs have not been significant in the periods presented.
Use of Estimates, Policy	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. The Company uses estimates primarily in the following areas: accounts receivable valuation, accrual of costs related to ancillary services the Company provides, accrual of liabilities for the portion of the related exposure that the Company has self-insured, accrual of various tax liabilities including estimates associated with the U.S. enacted Tax Cuts and Jobs Act (the 2017 Tax Act), accrual of loss contingencies, calculation of share-based compensation expense and estimates related to determining the lease term and discount rate when measuring ROU assets and lease liabilities. Actual results could be materially different from the estimated provisions and accruals recorded.
New Accounting Pronouncements, Policy	In June 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), which amends existing guidance for the accounting of credit losses on financial instruments. Under the ASU, the Company will record a valuation allowance for credit losses that are expected to be incurred over the financial asset’s contractual term. This standard will be effective for the Company on January 1, 2020 and is not expected to have a material effect on the consolidated financial statements as the new credit loss model will primarily apply to the Company's accounts receivable, which are of short duration and for which the Company has not historically experienced significant credit losses. However, the Company is still evaluating the impact of the new prescribed model compared to its current methodology.
Stock Plans, Policy	The Company recognizes stock compensation expense based on the fair value of awards granted to employees and directors under the Company’s omnibus incentive, stock option, director restricted stock and employee stock purchase rights plans. This expense, adjusted for expected forfeitures, is recognized in net earnings on a straight-line basis over the service periods as salaries and related costs on the condensed consolidated statements of earnings. RSUs and PSUs awarded to certain employees meeting specific retirement eligibility criteria at the time of grant are expensed immediately as there is no substantive service period associated with those awards. For RSU awards meeting retirement eligibility criteria, approximately $5,000 of stock compensation expense was recognized during the nine months ended September 30, 2019, and approximately $4,000 of stock compensation expense was recognized during 2018. For PSU awards meeting retirement eligibility criteria, approximately $5,000
Income Tax, Policy	In December 2017, the 2017 Tax Act was enacted in the United States. Beginning January 1, 2018, foreign earnings of the Company's international subsidiaries are generally exempt from U.S. Federal income tax upon repatriation. Notwithstanding these changes, certain withholding taxes and foreign exchange gains and losses will continue to be applicable upon the repatriation of foreign earnings. During 2018 and 2019, the Internal Revenue Service (IRS) and the U.S. Department of Treasury (Treasury) issued additional guidelines and clarifying regulations related to the implementation of the 2017 Tax Act. The Company expects that additional guidance will continue to be issued in future periods. As this guidance is issued, the Company will continue to evaluate the information to determine whether any additional adjustments to its tax provisions are required. The 2017 Tax Act included provisions for Global Intangible Low-Taxed Income (GILTI) under which taxes on foreign income are imposed on the excess of a deemed return on tangible assets of certain foreign subsidiaries and for Base Erosion and Anti-Abuse Tax (BEAT) under which taxes are imposed on certain base eroding payments to affiliated foreign companies. The Company treats BEAT and GILTI as components of current income tax expense. Income tax expense for the three and nine months ended September 30, 2019 and 2018 had no significant tax expense related BEAT or GILTI. In February 2018, the FASB issued amended guidance for reporting comprehensive income to reflect changes resulting from the 2017 Tax Act. The amendment, which had an effective date of January 1, 2019, provided the option to reclassify stranded tax effects resulting from the 2017 Tax Act within accumulated other comprehensive income (AOCI) to retained earnings. The Company elected to not reclassify stranded income tax effects from AOCI to retained earnings, including those related to implementation of the 2017 Tax Act.
Earnings Per Share, Policy	Diluted earnings attributable to shareholders per share is computed using the weighted average number of common shares and dilutive potential common shares outstanding. Dilutive potential shares represent outstanding stock options, including purchase options under the Company's employee stock purchase plan, and unvested restricted stock units. Basic earnings attributable to shareholders per share is calculated using the weighted average number of common shares outstanding without taking into consideration dilutive potential common shares outstanding.
Cash Equivalents, Policy	The Company’s financial instruments, other than cash, consist primarily of cash equivalents, accounts receivable, accounts payable and accrued expenses. The carrying value of these financial instruments approximates their fair value. All highly liquid investments with a maturity of three months or less at date of purchase are considered to be cash equivalents.
Segment Reporting, Policy	The Company is organized functionally in geographic operating segments. Accordingly, management focuses its attention on revenues, directly related cost of transportation and other expenses for each of the Company’s three primary sources of revenue, salaries and other operating expenses, operating income, identifiable assets, capital expenditures and equity generated in each of these geographical areas when evaluating the effectiveness of geographic management. Transactions among the Company’s various offices are conducted using the same arms-length pricing methodologies the Company uses when its offices transact business with independent agents. Certain costs are allocated among the segments based on the relative value of the underlying services, which can include allocation based on actual costs incurred or estimated cost plus a profit margin.

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Lessee Disclosure [Abstract]
Lease, Cost	Lease cost for the three and nine months ended September 30, 2019 are all recorded under rent and occupancy expenses on the condensed consolidated statement of earnings and are comprised of the following: Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating lease cost $ 20,784 $ 60,832 Variable lease cost 6,990 19,867 Total lease cost $ 27,774 $ 80,699
Lessee, Operating Lease, Liability, Maturity	Maturities of lease liabilities as of September 30, 2019 are as follows: 2019 $ 19,112 2020 77,416 2021 67,505 2022 61,044 2023 52,427 Thereafter 174,492 Total minimum lease payments 451,996 Less imputed interest 76,574 Lease liability $ 375,422
Schedule of Future Minimum Rental Payments for Operating Leases	At December 31, 2018, the last balance sheet presented before the adoption of the new accounting standard Topic 842 Leases 2019 $ 75,227 2020 62,974 2021 47,552 2022 38,352 2023 26,580 Thereafter 67,140 $ 317,825
Schedule of Weighted-average Remaining Lease Term and Weighted-average Discount Rate	The weighted-average remaining lease term and weighted-average discount rate as of September 30, 2019 are as follows: Weighted-average remaining lease term (in years) 7.47 Weighted-average discount rate 4.94 %
Other information related to leases	Other information related to the Company's operating leases are as follows: Three months ended September 30, 2019 Nine months ended September 30, 2019 Right-of-use assets obtained in exchange for new operating lease liabilities $ 14,630 $ 76,664 Cash paid for amounts included in the measurement of lease liabilities $ 19,642 $ 58,934

Basic and Diluted Earnings pe_2

Basic and Diluted Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table reconciles the numerator and the denominator of the basic and diluted per share computations for earnings attributable to shareholders: Three months ended September 30, Net earnings attributable to shareholders Weighted average shares Earnings per share 2019 Basic earnings attributable to shareholders $ 160,221 170,415 $ 0.94 Effect of dilutive potential common shares — 3,068 — Diluted earnings attributable to shareholders $ 160,221 173,483 $ 0.92 2018 Basic earnings attributable to shareholders $ 162,692 173,394 $ 0.94 Effect of dilutive potential common shares — 3,779 — Diluted earnings attributable to shareholders $ 162,692 177,173 $ 0.92 Nine months ended September 30, Net earnings attributable to shareholders Weighted average shares Earnings per share 2019 Basic earnings attributable to shareholders $ 453,069 171,084 $ 2.65 Effect of dilutive potential common shares — 3,379 — Diluted earnings attributable to shareholders $ 453,069 174,463 $ 2.60 2018 Basic earnings attributable to shareholders $ 438,989 174,675 $ 2.51 Effect of dilutive potential common shares — 3,772 — Diluted earnings attributable to shareholders $ 438,989 178,447 $ 2.46

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of Fair value of Cash and Cash Equivalents by Balance Sheet Grouping	Cash and cash equivalents consist of the following: September 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Cash and Cash Equivalents: Cash and overnight deposits $ 398,235 $ 398,235 $ 427,307 $ 427,307 Corporate commercial paper 788,060 788,708 467,300 467,760 Time deposits 29,675 29,675 29,128 29,128 Total cash and cash equivalents $ 1,215,970 $ 1,216,618 $ 923,735 $ 924,195

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Financial information regarding the Company’s operations by geographic area is as follows: UNITED STATES OTHER NORTH AMERICA LATIN AMERICA NORTH ASIA SOUTH ASIA EUROPE MIDDLE EAST, AFRICA AND INDIA ELIMI- NATIONS CONSOLI- DATED For the three months ended September 30, 2019: Revenues 1 $ 692,229 88,088 38,341 624,351 196,569 320,769 115,397 (889 ) 2,074,855 Directly related cost of transportation and other expenses 2 $ 389,254 51,420 22,990 489,195 145,345 221,149 81,592 (446 ) 1,400,499 Salaries and other operating expenses 3 $ 210,767 25,731 14,547 70,410 32,482 86,156 28,151 (438 ) 467,806 Operating income $ 92,208 10,937 804 64,746 18,742 13,464 5,654 (5 ) 206,550 Identifiable assets at period end $ 2,059,345 128,336 72,029 489,322 164,976 563,289 226,657 2,499 3,706,453 Capital expenditures $ 7,644 513 833 523 631 5,119 258 — 15,521 Equity $ 1,578,682 60,526 27,217 216,061 77,733 169,450 111,355 (31,737 ) 2,209,287 For the three months ended September 30, 2018: Revenues 1 $ 629,043 92,875 43,443 748,589 205,392 327,212 118,047 (73,654 ) 2,090,947 Directly related cost of transportation and other expenses 2 $ 345,236 58,464 27,635 601,699 158,226 227,418 83,992 (73,037 ) 1,429,633 Salaries and other operating expenses 3 $ 204,240 23,935 13,399 74,067 31,623 84,136 27,384 (624 ) 458,160 Operating income $ 79,567 10,476 2,409 72,823 15,543 15,658 6,671 7 203,154 Identifiable assets at period end $ 1,694,556 174,402 53,322 540,465 156,887 508,855 212,817 (6,504 ) 3,334,800 Capital expenditures $ 6,889 301 227 1,280 910 751 1,375 — 11,733 Equity $ 1,334,952 66,399 25,663 197,939 86,048 157,973 119,718 (31,360 ) 1,957,332 UNITED STATES OTHER NORTH AMERICA LATIN AMERICA NORTH ASIA SOUTH ASIA EUROPE MIDDLE EAST, AFRICA AND INDIA ELIMI- NATIONS CONSOLI- DATED For the nine months ended September 30, 2019: Revenues 1 $ 2,033,088 265,035 111,277 1,879,155 555,128 952,790 336,383 (2,371 ) 6,130,485 Directly related cost of transportation and other expenses 2 $ 1,142,701 157,997 64,149 1,475,395 407,642 657,720 236,184 (1,468 ) 4,140,320 Salaries and other operating expenses 3 $ 636,243 76,283 41,342 208,781 97,324 258,339 86,385 (884 ) 1,403,813 Operating income $ 254,144 30,755 5,786 194,979 50,162 36,731 13,814 (19 ) 586,352 Identifiable assets at period end $ 2,059,345 128,336 72,029 489,322 164,976 563,289 226,657 2,499 3,706,453 Capital expenditures $ 23,544 1,509 1,071 1,167 1,235 8,015 1,402 — 37,943 Equity $ 1,578,682 60,526 27,217 216,061 77,733 169,450 111,355 (31,737 ) 2,209,287 For the nine months ended September 30, 2018: Revenues 1 $ 1,790,869 257,206 122,170 2,065,405 560,070 977,967 342,589 (213,508 ) 5,902,768 Directly related cost of transportation and other expenses 2 $ 957,997 157,599 75,694 1,640,724 423,612 677,167 242,208 (211,931 ) 3,963,070 Salaries and other operating expenses 3 $ 620,029 70,036 38,996 211,576 92,409 248,906 79,782 (1,592 ) 1,360,142 Operating income $ 212,843 29,571 7,480 213,105 44,049 51,894 20,599 15 579,556 Identifiable assets at period end $ 1,694,556 174,402 53,322 540,465 156,887 508,855 212,817 (6,504 ) 3,334,800 Capital expenditures $ 16,092 4,020 899 2,623 1,934 9,167 2,907 — 37,642 Equity $ 1,334,952 66,399 25,663 197,939 86,048 157,973 119,718 (31,360 ) 1,957,332 1 In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation and other expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change operating income. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised. 2 Directly related cost of transportation and other expenses totals operating expenses from airfreight services, ocean freight and ocean services and customs brokerage and other services as shown in the condensed consolidated statements of earnings. 3 Salaries and other operating expenses totals salaries and related, rent and occupancy, depreciation and amortization, selling and promotion and other as shown in the condensed consolidated statements of earnings.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease, Right-of-Use Asset	$ 374,231		$ 0
Operating Lease, Liability	375,422
Accounts receivable, allowance for doubtful accounts	$ 11,853		$ 15,345
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease, Right-of-Use Asset		$ 343,000
Operating Lease, Liability		$ 340,000

Leases - Lease Cost (Detail)

Leases - Lease Cost (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Lessee Disclosure [Abstract]
Operating lease cost	$ 20,784	$ 60,832
Variable lease cost	6,990	19,867
Total lease cost	$ 27,774	$ 80,699

Leases - Maturities of Lease Li

Leases - Maturities of Lease Liabilities (Detail) $ in Thousands	Sep. 30, 2019USD ($)
Operating Lease Liabilities, Payments, Due, Rolling Maturity [Abstract]
2019	$ 19,112
2020	77,416
2021	67,505
2022	61,044
2023	52,427
Thereafter	174,492
Total minimum lease payments	451,996
Less imputed interest	76,574
Operating Lease, Liability	$ 375,422

Leases - Future Minimum Lease P

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

Leases Weighted-Average Remaini

Leases Weighted-Average Remaining Lease Term and Weighted-Average Discount (Detail)	Sep. 30, 2019
Weighted-average remaining lease term and weighted-average discount rate [Abstract]
Weighted-average remaining lease term (in years)	7 years 5 months 19 days
Weighted-average discount rate	4.94%

Leases - Other Information Rela

Leases - Other Information Related to Operating Leases (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Supplemental Cash Flow Information Related to Leases [Abstract]
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 14,630	$ 76,664
Cash paid for amounts included in the measurement of lease liabilities	$ 19,642	$ 58,934

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock compensation expense	$ 12,155	$ 13,902	$ 49,361	$ 43,171
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period			462,000	461,000
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period. Weighted average fair value			$ 75.73	$ 69.58
Number of common stock issued per unit based award upon vesting			100.00%	100.00%
Restricted Stock Units (RSUs) | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period			3 years	3 years
Directors Restricted Stock Plan 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period			24,000	25,000
Performance Shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period			96,000	18,000
Number of common stock issued per unit based award upon vesting			100.00%	100.00%
Maximum adjustment factor			200.00%	200.00%
Minimum adjustment factor			50.00%	50.00%
Minimum shares issued			0	0
Employee Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period. Weighted average fair value			$ 17.03	$ 17.49
Stock issued during period, shares, employee stock purchase plans	585,000	666,000	585,000	666,000
Retirement Eligible Restricted Stock Unit (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock or unit expense			$ 5,000	$ 4,000
Retirement Eligible Performance Stock Unit (PSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period				0
Stock compensation expense			$ 5,000

Income Taxes Income Taxes - Add

Income Taxes Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Taxes [Line Items]
Income tax expense	$ 53,319	$ 45,357	$ 156,029	$ 155,871
Effective income tax rate reconciliation, percent	24.90%	21.80%	25.60%	26.10%
Global Intangible Low-Taxed Income
Income Taxes [Line Items]
Income tax expense	$ 0	$ 0	$ 0	$ 0
Base Erosion and Anti-Abuse Tax
Income Taxes [Line Items]
Income tax expense	$ 0	0	$ 0	$ 0
Tax Cuts and Jobs Act
Income Taxes [Line Items]
Tax credits from withholding taxes paid on repatriated foreign earnings		7,000
State and Local Jurisdiction
Income Taxes [Line Items]
State income tax refund		$ (4,000)

Basic and Diluted Earnings pe_3

Basic and Diluted Earnings per Share - Numerator and Denominator of the Basic and Diluted Per Share Computations for Earnings Attributable to Shareholders Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net Earnings Attributable to Shareholders
Basic earnings attributable to shareholders	$ 160,221	$ 162,692	$ 453,069	$ 438,989
Diluted earnings attributable to shareholders	$ 160,221	$ 162,692	$ 453,069	$ 438,989
Weighted Average Shares
Weighted average basic shares outstanding	170,415	173,394	171,084	174,675
Effect of dilutive potential common shares	3,068	3,779	3,379	3,772
Weighted average diluted shares outstanding	173,483	177,173	174,463	178,447
Earnings Per Share
Basic earnings attributable to shareholders per share	$ 0.94	$ 0.94	$ 2.65	$ 2.51
Diluted earnings attributable to shareholders per share	$ 0.92	$ 0.92	$ 2.60	$ 2.46

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - $ / shares shares in Thousands	Nov. 04, 2019	May 07, 2019	May 08, 2018	Sep. 30, 2019	Sep. 30, 2018
Class of Stock [Line Items]
Expected common stock shares issued and outstanding				160,000
Date of declaration of dividends		May 7, 2019	May 8, 2018
Dividend declared per share		$ 0.50	$ 0.45
Date of dividend payment		Jun. 17, 2019	Jun. 15, 2018
Dividends payable to shareholders date of record		Jun. 3, 2019	Jun. 1, 2018
Subsequent Event
Class of Stock [Line Items]
Date of declaration of dividends	Nov. 4, 2019
Dividend declared per share	$ 0.50
Date of dividend payment	Dec. 16, 2019
Dividends payable to shareholders date of record	Dec. 2, 2019
Discretionary Plan
Class of Stock [Line Items]
Shares repurchased				4,002	5,378
Average price per share				$ 72.57	$ 71.07
Non-Discretionary Plan
Class of Stock [Line Items]
Shares repurchased				88	2,386
Average price per share				$ 74.03	$ 72.72

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	$ 1,215,970	$ 923,735
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	1,216,618	924,195
Cash and Overnight Deposits | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	398,235	427,307
Cash and Overnight Deposits | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	398,235	427,307
Corporate Commercial Paper | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	788,060	467,300
Corporate Commercial Paper | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	788,708	467,760
Time Deposits | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	29,675	29,128
Time Deposits | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	$ 29,675	$ 29,128

Business Segment Information -

Business Segment Information - Financial Information Regarding Company's Operations by Geographic Area (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	$ 2,074,855	$ 2,090,947	$ 6,130,485	$ 5,902,768
Directly related cost of transportation and other expenses	[2]	1,400,499	1,429,633	4,140,320	3,963,070
Salaries and other operating expenses	[3]	467,806	458,160	1,403,813	1,360,142
Operating income		206,550	203,154	586,352	579,556
Identifiable assets at period end		3,706,453	3,334,800	3,706,453	3,334,800		$ 3,314,559
Capital expenditures		15,521	11,733	37,943	37,642
Equity		2,209,287	1,957,332	2,209,287	1,957,332	$ 2,052,394	$ 1,987,720	$ 1,892,559	$ 1,994,373
Intersegment Eliminations
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	(889)	(73,654)	(2,371)	(213,508)
Directly related cost of transportation and other expenses	[2]	(446)	(73,037)	(1,468)	(211,931)
Salaries and other operating expenses	[3]	(438)	(624)	(884)	(1,592)
Operating income		(5)	7	(19)	15
Identifiable assets at period end		2,499	(6,504)	2,499	(6,504)
Equity		(31,737)	(31,360)	(31,737)	(31,360)
Operating Segments | United States Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	692,229	629,043	2,033,088	1,790,869
Directly related cost of transportation and other expenses	[2]	389,254	345,236	1,142,701	957,997
Salaries and other operating expenses	[3]	210,767	204,240	636,243	620,029
Operating income		92,208	79,567	254,144	212,843
Identifiable assets at period end		2,059,345	1,694,556	2,059,345	1,694,556
Capital expenditures		7,644	6,889	23,544	16,092
Equity		1,578,682	1,334,952	1,578,682	1,334,952
Operating Segments | Other North America Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	88,088	92,875	265,035	257,206
Directly related cost of transportation and other expenses	[2]	51,420	58,464	157,997	157,599
Salaries and other operating expenses	[3]	25,731	23,935	76,283	70,036
Operating income		10,937	10,476	30,755	29,571
Identifiable assets at period end		128,336	174,402	128,336	174,402
Capital expenditures		513	301	1,509	4,020
Equity		60,526	66,399	60,526	66,399
Operating Segments | Latin America Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	38,341	43,443	111,277	122,170
Directly related cost of transportation and other expenses	[2]	22,990	27,635	64,149	75,694
Salaries and other operating expenses	[3]	14,547	13,399	41,342	38,996
Operating income		804	2,409	5,786	7,480
Identifiable assets at period end		72,029	53,322	72,029	53,322
Capital expenditures		833	227	1,071	899
Equity		27,217	25,663	27,217	25,663
Operating Segments | North Asia Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	624,351	748,589	1,879,155	2,065,405
Directly related cost of transportation and other expenses	[2]	489,195	601,699	1,475,395	1,640,724
Salaries and other operating expenses	[3]	70,410	74,067	208,781	211,576
Operating income		64,746	72,823	194,979	213,105
Identifiable assets at period end		489,322	540,465	489,322	540,465
Capital expenditures		523	1,280	1,167	2,623
Equity		216,061	197,939	216,061	197,939
Operating Segments | South Asia Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	196,569	205,392	555,128	560,070
Directly related cost of transportation and other expenses	[2]	145,345	158,226	407,642	423,612
Salaries and other operating expenses	[3]	32,482	31,623	97,324	92,409
Operating income		18,742	15,543	50,162	44,049
Identifiable assets at period end		164,976	156,887	164,976	156,887
Capital expenditures		631	910	1,235	1,934
Equity		77,733	86,048	77,733	86,048
Operating Segments | Europe Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	320,769	327,212	952,790	977,967
Directly related cost of transportation and other expenses	[2]	221,149	227,418	657,720	677,167
Salaries and other operating expenses	[3]	86,156	84,136	258,339	248,906
Operating income		13,464	15,658	36,731	51,894
Identifiable assets at period end		563,289	508,855	563,289	508,855
Capital expenditures		5,119	751	8,015	9,167
Equity		169,450	157,973	169,450	157,973
Operating Segments | Middle East Africa And India Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	115,397	118,047	336,383	342,589
Directly related cost of transportation and other expenses	[2]	81,592	83,992	236,184	242,208
Salaries and other operating expenses	[3]	28,151	27,384	86,385	79,782
Operating income		5,654	6,671	13,814	20,599
Identifiable assets at period end		226,657	212,817	226,657	212,817
Capital expenditures		258	1,375	1,402	2,907
Equity		$ 111,355	$ 119,718	$ 111,355	$ 119,718
[1]	In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation and other expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change operating income. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised.
[2]	Directly related cost of transportation and other expenses totals operating expenses from airfreight services, ocean freight and ocean services and customs brokerage and other services as shown in the condensed consolidated statements of earnings.
[3]	Salaries and other operating expenses totals salaries and related, rent and occupancy, depreciation and amortization, selling and promotion and other as shown in the condensed consolidated statements of earnings.