Expeditors International of Washington (EXPD) 10-Q 4 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 02, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
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		169,265,692
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, par value $0.01 per share
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, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 1,465,510	$ 1,230,491
Accounts receivable, less allowance for credit loss of $5,171 at September 30, 2020 and $11,143 at December 31, 2019	1,582,424	1,315,091
Deferred contract costs	232,351	131,783
Other	129,617	92,558
Total current assets	3,409,902	2,769,923
Property and equipment, less accumulated depreciation and amortization of $510,103 at September 30, 2020 and $478,906 at December 31, 2019	499,189	499,344
Operating lease right-of-use assets	422,002	390,035
Goodwill	7,927	7,927
Deferred federal and state income taxes, net	3,130	8,034
Other assets, net	16,404	16,621
Total assets	4,358,554	3,691,884
Current Liabilities:
Accounts payable	888,761	735,695
Accrued expenses, primarily salaries and related costs	236,826	189,446
Contract liabilities	267,266	154,183
Current portion of operating lease liabilities	70,755	65,367
Federal, state and foreign income taxes	33,100	23,627
Total current liabilities	1,496,708	1,168,318
Noncurrent portion of operating lease liabilities	357,373	326,347
Commitments and contingencies
Shareholders’ Equity:
Preferred stock, none issued	0	0
Common stock, par value $0.01 per share. Issued and outstanding: 169,231 shares at September 30, 2020 and 169,622 shares at December 31, 2019	1,692	1,696
Additional paid-in capital	145,924	3,203
Retained earnings	2,489,694	2,321,316
Accumulated other comprehensive loss	(135,281)	(131,187)
Total shareholders’ equity	2,502,029	2,195,028
Noncontrolling interest	2,444	2,191
Total equity	2,504,473	2,197,219
Total liabilities and equity	$ 4,358,554	$ 3,691,884

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for credit loss	$ 5,171	$ 11,143
Property and equipment, accumulated depreciation	$ 510,103	$ 478,906
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	169,231	169,622
Common stock, shares outstanding	169,231	169,622

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	$ 2,464,797	$ 2,074,855	$ 6,947,293	$ 6,130,485
Operating Expenses:
Direct Operating Costs	[2]	1,730,418	1,400,499	4,848,187	4,140,320
Salaries and related		373,613	356,331	1,110,760	1,069,592
Rent and occupancy		42,484	41,987	126,383	124,407
Depreciation and amortization		15,851	12,386	42,620	38,456
Selling and promotion		2,945	10,133	14,301	32,852
Other		47,541	46,969	146,416	138,506
Total operating expenses		2,212,852	1,868,305	6,288,667	5,544,133
Operating income		251,945	206,550	658,626	586,352
Other Income (Expense):
Interest income		1,504	5,501	8,870	18,123
Other, net		980	1,895	5,161	5,822
Other income, net		2,484	7,396	14,031	23,945
Earnings before income taxes		254,429	213,946	672,657	610,297
Income tax expense		62,710	53,319	173,968	156,029
Net earnings		191,719	160,627	498,689	454,268
Less net earnings attributable to the noncontrolling interest		412	406	1,169	1,199
Net earnings attributable to shareholders		$ 191,307	$ 160,221	$ 497,520	$ 453,069
Diluted earnings attributable to shareholders per share		$ 1.12	$ 0.92	$ 2.92	$ 2.60
Basic earnings attributable to shareholders per share		$ 1.14	$ 0.94	$ 2.96	$ 2.65
Weighted average diluted shares outstanding		170,735	173,483	170,539	174,463
Weighted average basic shares outstanding		168,310	170,415	167,942	171,084
Airfreight services
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		$ 1,093,550	$ 715,450	$ 3,237,179	$ 2,171,928
Operating Expenses:
Direct Operating Costs		833,689	522,868	2,450,931	1,574,717
Ocean freight and ocean services
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		612,858	585,374	1,597,997	1,697,824
Operating Expenses:
Direct Operating Costs		455,072	424,215	1,185,154	1,234,845
Customs brokerage and other services
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		758,389	774,031	2,112,117	2,260,733
Operating Expenses:
Direct Operating Costs		$ 441,657	$ 453,416	$ 1,212,102	$ 1,330,758
[1]	Beginning in the second quarter of 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 impact of these changes on reported segment revenues was immaterial and in the nine months ended September 30, 2019, 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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 191,719	$ 160,627	$ 498,689	$ 454,268
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of tax expense (benefit) of $4,200 and $(5,803) for the three months ended September 30, 2020 and 2019 and $226 and $(5,364) for the nine months ended September 30, 2020 and 2019	17,429	(14,603)	(5,010)	(14,007)
Reclassification adjustments for foreign currency realized losses, net of tax of $145 for the nine months ended September 30, 2019	0	0	0	535
Other comprehensive income (loss)	17,429	(14,603)	(5,010)	(13,472)
Comprehensive income	209,148	146,024	493,679	440,796
Less comprehensive (loss) income attributable to the noncontrolling interest	(36)	481	253	1,020
Comprehensive income attributable to shareholders	$ 209,184	$ 145,543	$ 493,426	$ 439,776

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Other Comprehensive Income Loss Tax Parenthetical Disclosures [Abstract]
Foreign currency translation adjustments, tax expense (benefit)	$ 4,200	$ (5,803)	$ 226	$ (5,364)
Reclassification Adjustment from 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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Operating Activities:
Net earnings	$ 191,719	$ 160,627	$ 498,689	$ 454,268
Adjustments to reconcile net earnings to net cash from operating activities:
Provisions for losses on accounts receivable	398	757	4,607	453
Deferred income tax (benefit) expense	(1,276)	(5,822)	2,872	(17)
Stock compensation expense	12,297	12,155	45,091	49,361
Depreciation and amortization	15,851	12,386	42,620	38,456
Other, net	2,919	652	3,470	812
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(106,065)	43,885	(274,440)	246,175
Increase (decrease) in accounts payable and accrued expenses	94,263	(58,816)	201,940	(141,199)
(Increase) decrease in deferred contract costs	(81,486)	10,301	(99,887)	28,550
Increase (decrease) in contract liabilities	91,638	(13,211)	112,244	(36,933)
(Decrease) in income taxes payable, net	(41,286)	(671)	(10,644)	(33,284)
(Increase) decrease in other, net	(17,373)	(744)	(13,242)	47
Net cash from operating activities	161,599	161,499	513,320	606,689
Investing Activities:
Purchase of property and equipment	(9,178)	(15,521)	(37,419)	(37,943)
Other, net	1,174	232	963	1,525
Net cash from investing activities	(8,004)	(15,289)	(36,456)	(36,418)
Financing Activities:
Proceeds from issuance of common stock	121,430	60,713	174,016	120,190
Repurchases of common stock		(61,999)	(314,225)	(296,922)
Dividends paid			(86,815)	(85,184)
Payments for taxes related to net share settlement of equity awards			(10,566)	(6,674)
Net cash from financing activities	121,430	(1,286)	(237,590)	(268,590)
Effect of exchange rate changes on cash and cash equivalents	10,030	(11,604)	(4,255)	(9,446)
Change in cash and cash equivalents	285,055	133,320	235,019	292,235
Cash and cash equivalents at beginning of period	1,180,455	1,082,650	1,230,491	923,735
Cash and cash equivalents at end of period	1,465,510	1,215,970	1,465,510	1,215,970
Taxes Paid:
Income taxes	$ 106,434	$ 61,201	$ 180,242	$ 196,169

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional paid-in capital	Retained earnings	Retained earningsCumulative Effect, Period of Adoption, Adjustment	Accumulated other comprehensive loss	Total shareholders' equity	Total shareholders' equityCumulative Effect, Period of Adoption, Adjustment	Noncontrolling interest
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
Increase (Decrease) in Equity [Roll Forward]
Shares issued under employee stock plans	113,516		$ 28	113,488				113,516
Shares issued under employee stock plans (in shares)			2,751
Shares repurchased under provisions ofstock repurchase plans	(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
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]
Shares issued under employee stock plans	60,713		$ 11	60,702				60,713
Shares issued under employee stock plans (in shares)			1,095
Shares repurchased under provisions ofstock repurchase plans	(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
Balance at Dec. 31, 2019	$ 2,197,219	$ 6,074	$ 1,696	3,203	2,321,316	$ 6,074	(131,187)	2,195,028	$ 6,074	2,191
Balance (in shares) at Dec. 31, 2019	169,622		169,622
Increase (Decrease) in Equity [Roll Forward]
Shares issued under employee stock plans	$ 163,450		$ 40	163,410				163,450
Shares issued under employee stock plans (in shares)			4,009
Shares repurchased under provisions ofstock repurchase plans	(314,225)		$ (44)	(66,780)	(247,401)			(314,225)
Shares repurchased under provisions of stock repurchase plans (in shares)			(4,400)
Stock compensation expense	45,091			45,091				45,091
Net earnings	498,689				497,520			497,520		1,169
Other comprehensive income (loss)	(5,010)						(4,094)	(4,094)		(916)
Dividends paid	(86,815)			1,000	(87,815)			(86,815)
Balance at Sep. 30, 2020	$ 2,504,473		$ 1,692	145,924	2,489,694		(135,281)	2,502,029		2,444
Balance (in shares) at Sep. 30, 2020	169,231		169,231
Balance at Jun. 30, 2020	$ 2,161,598		$ 1,668	12,221	2,298,387		(153,158)	2,159,118		2,480
Balance (in shares) at Jun. 30, 2020			166,816
Increase (Decrease) in Equity [Roll Forward]
Shares issued under employee stock plans	121,430		$ 24	121,406				121,430
Shares issued under employee stock plans (in shares)			2,415
Stock compensation expense	12,297			12,297				12,297
Net earnings	191,719				191,307			191,307		412
Other comprehensive income (loss)	17,429						17,877	17,877		(448)
Balance at Sep. 30, 2020	$ 2,504,473		$ 1,692	$ 145,924	$ 2,489,694		$ (135,281)	$ 2,502,029		$ 2,444
Balance (in shares) at Sep. 30, 2020	169,231		169,231

Consolidated Statements of Equi

Consolidated Statements of Equity (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Statement Of Stockholders Equity [Abstract]
Dividends paid, per share	$ 0.52	$ 0.50

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
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, technology, 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 21, 2020. 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 condensed 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, 2020. Beginning in the second quarter 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 impact on reported consolidated and segment total revenues and expenses for these changes was immaterial and nine months ended September 30, 2019 presentation has not been revised. C. Leases The Company determines if an arrangement is a lease at inception. Right-of-use (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 ROU assets and lease liabilities, to the extent not considered fixed, and instead expenses 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 in the condensed consolidated statement of earnings. D. Accounts Receivable Effective January 1, 2020, the Company adopted a new accounting standard update related to the measurement of credit losses on financial instruments. The adoption had an immaterial effect on the Company’s consolidated financial statements and disclosures. Under this new standard, the valuation allowance reduces a financial asset’s balance for credit losses expected to be incurred over the asset’s contractual term. The Company determined that this new guidance is applicable to its accounts receivable, which are short term and for which the Company has not historically experienced significant credit losses. The Company adopted this standard using the modified retrospective transition method resulting in a $6 million $5,171 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, self-insured liabilities, accrual of various tax liabilities and contingencies including estimates associated with the U.S. enacted Tax Cuts and Jobs Act (the 2017 Tax Act), accrual of loss contingencies, the allocation of the purchase price in a business combination, 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 December 2019, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The ASU also clarifies and amends existing guidance to improve consistent application among reporting entities. This standard will become effective for the Company on January 1, 2021. The Company is currently evaluating the impact of this standard and does not expect it to have a material impact on the Company’s consolidated financial statements and disclosures.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2020
Share Based Compensation [Abstract]
Share-Based Compensation	Note 2. Share-Based Compensation The Company has historically granted the majority of its share-based awards during the second quarter of each fiscal year. On May 5, 2020, shareholders approved the Amended and Restated 2017 Omnibus Incentive Plan (Amended 2017 Plan), which made available 5.5 million shares of the Company’s common stock to be issued under all award types allowed by the Amended 2017 Plan. During the nine months ended September 30, 2020 and 2019, the Company awarded 511 and 462 restricted stock units (RSUs), respectively. These RSUs were granted to employees at a weighted-average fair value of $74.21 in 2020 and $75.73 in 2019. The RSUs vest annually over 3 years The Company also awarded 95 and 96 performance stock units (PSUs) in 2020 and 2019, respectively. Outstanding PSUs include performance conditions to be finally measured in 2020, 2021 and 2022. The final number of PSUs will be determined using an adjustment factor of up to 2 times or down to 0.5 of the targeted PSU grant. If the minimum performance thresholds are not achieved, no shares will be issued. Each PSU will convert to one share of the Company's common stock upon vesting. 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 677 and 585 shares were issued in the three and nine months ended September 30, 2020 and 2019, respectively. The fair value of the employee stock purchase rights granted was $23.26 and $17.03 per share in 2020 and 2019, respectively. The Company recognizes stock compensation expense based on the fair value of awards granted to employees and directors under the Company’s Amended 2017 Plan, stock option 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.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Note 3. Income Taxes During 2020 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 additional guidance to be issued in future periods. As this guidance is issued, the Company will 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. For the three and nine months ended September 30, 2020 and 2019, there was no BEAT expense and GILTI expense was insignificant. The Company’s consolidated effective income tax rate was 24.6% and 25.9% for the three and nine months ended September 30, 2020, respectively, as compared to 24.9% and 25.6% The Company is subject to taxation in various states and many foreign jurisdictions including the People’s Republic of China, including Hong Kong, Taiwan, Vietnam, India, Mexico, Canada, Netherlands and the United Kingdom. The Company believes that its tax positions, including intercompany transfer pricing policies, are reasonable and consistently applied. The Company is under, or may be subject to, audit or examination and assessments by the relevant authorities in respect to these and any other jurisdictions primarily for years 2009 and thereafter. Sometimes audits result in proposed assessments where the ultimate resolution could result in significant additional tax, penalties and interest payments. The Company establishes liabilities when, despite its belief that the tax return positions are appropriate and consistent with tax law, it concludes that it may not be successful in realizing the tax position. In evaluating a tax position, the Company determines whether it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position and in consultation with qualified tax advisors. The total amount of the Company’s tax contingencies may increase in 2020 and beyond. In addition, changes in federal, state and foreign tax laws, including transfer pricing and changes in interpretations of these laws may increase the Company’s existing tax contingencies. The timing of the resolution of income tax examinations can be highly uncertain, and the amounts ultimately paid including interest and penalties, if any, upon resolution of the issues raised by the taxing authorities may differ from the amounts recorded. It is reasonably possible that within the next twelve months the Company may undergo further audits and examinations by various tax authorities and possibly may reach resolution related to income tax examinations in one or more jurisdictions. These assessments or settlements could result in changes to the Company’s contingencies related to positions on tax filings in future years. The estimate of any ultimate tax liability contains assumptions based on experiences, judgments about potential actions by taxing jurisdictions as well as judgments about the likely outcome of issues that have been raised by the taxing jurisdiction. Any interest and penalties expensed in relation to the underpayment of income taxes were insignificant for the three and nine months ended September 30, 2020 and 2019. 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 7 to the consolidated financial statements in the Company's 2019 Annual Report on Form 10-K.

Basic and Diluted Earnings per

Basic and Diluted Earnings per Share	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Basic and Diluted Earnings per Share	Note 4. 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 2020 Basic earnings attributable to shareholders $ 191,307 168,310 $ 1.14 Effect of dilutive potential common shares — 2,425 — Diluted earnings attributable to shareholders $ 191,307 170,735 $ 1.12 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 Nine months ended September 30, Net earnings attributable to shareholders Weighted average shares Earnings per share 2020 Basic earnings attributable to shareholders $ 497,520 167,942 $ 2.96 Effect of dilutive potential common shares — 2,597 — Diluted earnings attributable to shareholders $ 497,520 170,539 $ 2.92 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 Substantially all outstanding potential common shares as of September 30, 2020 and 2019 were dilutive.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2020
Stockholders Equity Note [Abstract]
Shareholders' Equity	Note 5. 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, 2020, 4,400 shares were repurchased at an average price of $71.41 Accumulated other comprehensive loss consisted entirely of foreign currency translation adjustments, net of related income tax effects, for all the periods presented. On May 5, 2020, the Board of Directors declared a semi-annual dividend of $0.52 per share payable on June 15, 2020 to shareholders of record as of June 1, 2020. 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. Subsequent to the end of the third quarter 2020, on November 2, 2020, the Board of Directors declared a semi-annual dividend of $0.52 per share payable on December 15, 2020 to shareholders of record as of December 1, 2020.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 6. 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, 2020 December 31, 2019 Cost Fair Value Cost Fair Value Cash and Cash Equivalents: Cash and overnight deposits $ 558,886 $ 558,886 $ 417,456 $ 417,456 Corporate commercial paper 873,725 873,727 775,504 776,356 Time deposits 32,899 32,899 37,531 37,531 Total cash and cash equivalents $ 1,465,510 $ 1,465,512 $ 1,230,491 $ 1,231,343 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, 2020
Loss Contingency [Abstract]
Contingencies	Note 7. 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, 2020, 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, 2020
Segment Reporting [Abstract]
Business Segment Information	Note 8. 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, 2020: Revenues 1 $ 686,245 78,129 39,193 883,104 267,228 378,048 133,765 (915 ) 2,464,797 Directly related cost of transportation and other expenses 2 $ 379,588 44,911 23,361 720,807 200,334 261,325 100,619 (527 ) 1,730,418 Salaries and other operating expenses 3 $ 197,749 25,325 12,359 81,876 39,926 96,658 28,925 (384 ) 482,434 Operating income $ 108,908 7,893 3,473 80,421 26,968 20,065 4,221 (4 ) 251,945 Identifiable assets at period end $ 2,336,071 163,943 76,173 689,525 231,771 642,124 228,423 (9,476 ) 4,358,554 Capital expenditures $ 4,703 483 180 1,075 665 1,780 292 — 9,178 Equity $ 1,791,658 77,915 31,324 246,557 97,564 185,352 110,714 (36,611 ) 2,504,473 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 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, 2020: Revenues 1 $ 1,975,883 234,274 114,636 2,538,117 660,583 1,086,118 340,415 (2,733 ) 6,947,293 Directly related cost of transportation and other expenses 2 $ 1,108,173 132,250 69,827 2,054,023 481,971 754,863 248,503 (1,423 ) 4,848,187 Salaries and other operating expenses 3 $ 631,396 74,320 36,220 236,480 109,018 274,269 80,063 (1,286 ) 1,440,480 Operating income $ 236,314 27,704 8,589 247,614 69,594 56,986 11,849 (24 ) 658,626 Identifiable assets at period end $ 2,336,071 163,943 76,173 689,525 231,771 642,124 228,423 (9,476 ) 4,358,554 Capital expenditures $ 28,276 1,692 498 1,785 1,035 3,418 715 — 37,419 Equity $ 1,791,658 77,915 31,324 246,557 97,564 185,352 110,714 (36,611 ) 2,504,473 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 1 Beginning in the second quarter of 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 impact of these changes on reported segment revenues was immaterial and in the nine months ended September 30, 2019, 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. The Company’s consolidated financial results in the nine months ended September 30, 2020 was significantly impacted by the effects of the global pandemic and are expected to be further impacted in the remainder of 2020. The impact is affecting the Company’s geographical segments unevenly. In the second and third quarter of 2020, North Asia experienced significant increases in airfreight services revenues and directly related expenses primarily as a result of demand for time-sensitive delivery of technology equipment and medical equipment and supplies from China, which combined with reductions in airfreight supply resulted in significantly higher rates. In the third quarter 2020 and 2019, the People's Republic of China, including Hong Kong, represented 30% and 26%, respectively, of the Company’s total revenues and 26% of the Company’s total operating income in both periods. This is in contrast with slower activity in North Asia in the first quarter of 2020 as the global pandemic resulted in temporary closures and limited operations from the Company’s China offices and shipments that were rerouted or delayed by customers and service providers taking their own precautionary measures. In the nine months ended September 30, 2020 and 2019, the People's Republic of China, including Hong Kong, represented 31% and 26%, respectively, of the Company’s total revenues and 30% and 27%, respectively, of the Company’s total operating income.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	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, technology, 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 21, 2020. 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	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 condensed 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, 2020. Beginning in the second quarter 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 impact on reported consolidated and segment total revenues and expenses for these changes was immaterial and nine months ended September 30, 2019 presentation has not been revised.
Leases	C. Leases The Company determines if an arrangement is a lease at inception. Right-of-use (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 ROU assets and lease liabilities, to the extent not considered fixed, and instead expenses 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 in the condensed consolidated statement of earnings.
Accounts Receivable	D. Accounts Receivable Effective January 1, 2020, the Company adopted a new accounting standard update related to the measurement of credit losses on financial instruments. The adoption had an immaterial effect on the Company’s consolidated financial statements and disclosures. Under this new standard, the valuation allowance reduces a financial asset’s balance for credit losses expected to be incurred over the asset’s contractual term. The Company determined that this new guidance is applicable to its accounts receivable, which are short term and for which the Company has not historically experienced significant credit losses. The Company adopted this standard using the modified retrospective transition method resulting in a $6 million $5,171 Additions and write-offs have not been significant in the periods presented.
Use of Estimates	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, self-insured liabilities, accrual of various tax liabilities and contingencies including estimates associated with the U.S. enacted Tax Cuts and Jobs Act (the 2017 Tax Act), accrual of loss contingencies, the allocation of the purchase price in a business combination, 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.
Recent Accounting Pronouncement	F. Recent Accounting Pronouncement In December 2019, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The ASU also clarifies and amends existing guidance to improve consistent application among reporting entities. This standard will become effective for the Company on January 1, 2021. The Company is currently evaluating the impact of this standard and does not expect it to have a material impact on the Company’s consolidated financial statements and disclosures.
Stock Plans	The Company recognizes stock compensation expense based on the fair value of awards granted to employees and directors under the Company’s Amended 2017 Plan, stock option 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.
Income Tax	During 2020 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 additional guidance to be issued in future periods. As this guidance is issued, the Company will 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. For the three and nine months ended September 30, 2020 and 2019, there was no BEAT expense and GILTI expense was insignificant.
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.
Cash Equivalents	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	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.

Basic and Diluted Earnings pe_2

Basic and Diluted Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2020
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 2020 Basic earnings attributable to shareholders $ 191,307 168,310 $ 1.14 Effect of dilutive potential common shares — 2,425 — Diluted earnings attributable to shareholders $ 191,307 170,735 $ 1.12 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 Nine months ended September 30, Net earnings attributable to shareholders Weighted average shares Earnings per share 2020 Basic earnings attributable to shareholders $ 497,520 167,942 $ 2.96 Effect of dilutive potential common shares — 2,597 — Diluted earnings attributable to shareholders $ 497,520 170,539 $ 2.92 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

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 December 31, 2019 Cost Fair Value Cost Fair Value Cash and Cash Equivalents: Cash and overnight deposits $ 558,886 $ 558,886 $ 417,456 $ 417,456 Corporate commercial paper 873,725 873,727 775,504 776,356 Time deposits 32,899 32,899 37,531 37,531 Total cash and cash equivalents $ 1,465,510 $ 1,465,512 $ 1,230,491 $ 1,231,343

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020: Revenues 1 $ 686,245 78,129 39,193 883,104 267,228 378,048 133,765 (915 ) 2,464,797 Directly related cost of transportation and other expenses 2 $ 379,588 44,911 23,361 720,807 200,334 261,325 100,619 (527 ) 1,730,418 Salaries and other operating expenses 3 $ 197,749 25,325 12,359 81,876 39,926 96,658 28,925 (384 ) 482,434 Operating income $ 108,908 7,893 3,473 80,421 26,968 20,065 4,221 (4 ) 251,945 Identifiable assets at period end $ 2,336,071 163,943 76,173 689,525 231,771 642,124 228,423 (9,476 ) 4,358,554 Capital expenditures $ 4,703 483 180 1,075 665 1,780 292 — 9,178 Equity $ 1,791,658 77,915 31,324 246,557 97,564 185,352 110,714 (36,611 ) 2,504,473 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 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, 2020: Revenues 1 $ 1,975,883 234,274 114,636 2,538,117 660,583 1,086,118 340,415 (2,733 ) 6,947,293 Directly related cost of transportation and other expenses 2 $ 1,108,173 132,250 69,827 2,054,023 481,971 754,863 248,503 (1,423 ) 4,848,187 Salaries and other operating expenses 3 $ 631,396 74,320 36,220 236,480 109,018 274,269 80,063 (1,286 ) 1,440,480 Operating income $ 236,314 27,704 8,589 247,614 69,594 56,986 11,849 (24 ) 658,626 Identifiable assets at period end $ 2,336,071 163,943 76,173 689,525 231,771 642,124 228,423 (9,476 ) 4,358,554 Capital expenditures $ 28,276 1,692 498 1,785 1,035 3,418 715 — 37,419 Equity $ 1,791,658 77,915 31,324 246,557 97,564 185,352 110,714 (36,611 ) 2,504,473 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 1 Beginning in the second quarter of 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 impact of these changes on reported segment revenues was immaterial and in the nine months ended September 30, 2019, 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, 2020	Jun. 30, 2020	Jan. 01, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting change	$ 2,504,473	$ 2,161,598		$ 2,197,219	$ 2,209,287	$ 2,052,394	$ 1,987,720
Accounts receivable, allowance for credit loss	$ 5,171			11,143
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting change				$ 6,074
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting change			$ 6,000
Accounts receivable, allowance for credit loss			$ (8,000)

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - $ / shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	May 05, 2020
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			511	462
Share-based compensation arrangement by share-based payment award, equity Instruments other than options, grants in period. Weighted average fair value			$ 74.21	$ 75.73
Share-based compensation arrangement by share-based payment award, award vesting period			3 years	3 years
Number of common stock issued per unit based award upon vesting			100.00%	100.00%
Non-Employee Directors 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			19	24
Performance Stock Units (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			95	96
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 Purchase Plan
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	$ 23.26	$ 17.03	$ 23.26	$ 17.03
Stock issued during period, shares, employee stock purchase plans	677	585	677	585
Amended 2017 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares authorized					5,500

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Taxes [Line Items]
Income tax expense	$ 62,710	$ 53,319	$ 173,968	$ 156,029
Effective income tax rate reconciliation, percent	24.60%	24.90%	25.90%	25.60%
Base Erosion and Anti-Abuse Tax
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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net Earnings Attributable to Shareholders
Basic earnings attributable to shareholders	$ 191,307	$ 160,221	$ 497,520	$ 453,069
Diluted earnings attributable to shareholders	$ 191,307	$ 160,221	$ 497,520	$ 453,069
Weighted Average Shares
Weighted average basic shares outstanding	168,310	170,415	167,942	171,084
Effect of dilutive potential common shares	2,425	3,068	2,597	3,379
Weighted average diluted shares outstanding	170,735	173,483	170,539	174,463
Earnings Per Share
Basic earnings attributable to shareholders per share	$ 1.14	$ 0.94	$ 2.96	$ 2.65
Diluted earnings attributable to shareholders per share	$ 1.12	$ 0.92	$ 2.92	$ 2.60

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - $ / shares shares in Thousands	Nov. 02, 2020	May 05, 2020	May 07, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Class of Stock [Line Items]
Date of declaration of dividends		May 5, 2020	May 7, 2019
Dividend declared per share		$ 0.52	$ 0.50
Date of dividend payment		Jun. 15, 2020	Jun. 17, 2019
Dividends payable to shareholders date of record		Jun. 1, 2020	Jun. 3, 2019
Subsequent Event
Class of Stock [Line Items]
Date of declaration of dividends	Nov. 2, 2020
Dividend declared per share	$ 0.52
Date of dividend payment	Dec. 15, 2020
Dividends payable to shareholders date of record	Dec. 1, 2020
Discretionary Plan
Class of Stock [Line Items]
Expected common stock shares issued and outstanding					160,000
Shares repurchased					4,400	4,002
Average price per share					$ 71.41	$ 72.57
Non-Discretionary Plan
Class of Stock [Line Items]
Shares repurchased				88
Average price per share				$ 74.03

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	$ 1,465,510	$ 1,230,491
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	1,465,512	1,231,343
Cash and Overnight Deposits | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	558,886	417,456
Cash and Overnight Deposits | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	558,886	417,456
Corporate Commercial Paper | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	873,725	775,504
Corporate Commercial Paper | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	873,727	776,356
Time Deposits | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	32,899	37,531
Time Deposits | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	$ 32,899	$ 37,531

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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	$ 2,464,797	$ 2,074,855	$ 6,947,293	$ 6,130,485
Directly related cost of transportation and other expenses	[2]	1,730,418	1,400,499	4,848,187	4,140,320
Salaries and other operating expenses	[3]	482,434	467,806	1,440,480	1,403,813
Operating income		251,945	206,550	658,626	586,352
Identifiable assets at period end		4,358,554	3,706,453	4,358,554	3,706,453		$ 3,691,884
Capital expenditures		9,178	15,521	37,419	37,943
Equity		2,504,473	2,209,287	2,504,473	2,209,287	$ 2,161,598	$ 2,197,219	$ 2,052,394	$ 1,987,720
Operating Segments | United States Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	686,245	692,229	1,975,883	2,033,088
Directly related cost of transportation and other expenses	[2]	379,588	389,254	1,108,173	1,142,701
Salaries and other operating expenses	[3]	197,749	210,767	631,396	636,243
Operating income		108,908	92,208	236,314	254,144
Identifiable assets at period end		2,336,071	2,059,345	2,336,071	2,059,345
Capital expenditures		4,703	7,644	28,276	23,544
Equity		1,791,658	1,578,682	1,791,658	1,578,682
Operating Segments | Other North America Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	78,129	88,088	234,274	265,035
Directly related cost of transportation and other expenses	[2]	44,911	51,420	132,250	157,997
Salaries and other operating expenses	[3]	25,325	25,731	74,320	76,283
Operating income		7,893	10,937	27,704	30,755
Identifiable assets at period end		163,943	128,336	163,943	128,336
Capital expenditures		483	513	1,692	1,509
Equity		77,915	60,526	77,915	60,526
Operating Segments | Latin America Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	39,193	38,341	114,636	111,277
Directly related cost of transportation and other expenses	[2]	23,361	22,990	69,827	64,149
Salaries and other operating expenses	[3]	12,359	14,547	36,220	41,342
Operating income		3,473	804	8,589	5,786
Identifiable assets at period end		76,173	72,029	76,173	72,029
Capital expenditures		180	833	498	1,071
Equity		31,324	27,217	31,324	27,217
Operating Segments | North Asia Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	883,104	624,351	2,538,117	1,879,155
Directly related cost of transportation and other expenses	[2]	720,807	489,195	2,054,023	1,475,395
Salaries and other operating expenses	[3]	81,876	70,410	236,480	208,781
Operating income		80,421	64,746	247,614	194,979
Identifiable assets at period end		689,525	489,322	689,525	489,322
Capital expenditures		1,075	523	1,785	1,167
Equity		246,557	216,061	246,557	216,061
Operating Segments | South Asia Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	267,228	196,569	660,583	555,128
Directly related cost of transportation and other expenses	[2]	200,334	145,345	481,971	407,642
Salaries and other operating expenses	[3]	39,926	32,482	109,018	97,324
Operating income		26,968	18,742	69,594	50,162
Identifiable assets at period end		231,771	164,976	231,771	164,976
Capital expenditures		665	631	1,035	1,235
Equity		97,564	77,733	97,564	77,733
Operating Segments | Europe Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	378,048	320,769	1,086,118	952,790
Directly related cost of transportation and other expenses	[2]	261,325	221,149	754,863	657,720
Salaries and other operating expenses	[3]	96,658	86,156	274,269	258,339
Operating income		20,065	13,464	56,986	36,731
Identifiable assets at period end		642,124	563,289	642,124	563,289
Capital expenditures		1,780	5,119	3,418	8,015
Equity		185,352	169,450	185,352	169,450
Operating Segments | Middle East Africa And India Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	133,765	115,397	340,415	336,383
Directly related cost of transportation and other expenses	[2]	100,619	81,592	248,503	236,184
Salaries and other operating expenses	[3]	28,925	28,151	80,063	86,385
Operating income		4,221	5,654	11,849	13,814
Identifiable assets at period end		228,423	226,657	228,423	226,657
Capital expenditures		292	258	715	1,402
Equity		110,714	111,355	110,714	111,355
Intersegment Eliminations
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	[1]	(915)	(889)	(2,733)	(2,371)
Directly related cost of transportation and other expenses	[2]	(527)	(446)	(1,423)	(1,468)
Salaries and other operating expenses	[3]	(384)	(438)	(1,286)	(884)
Operating income		(4)	(5)	(24)	(19)
Identifiable assets at period end		(9,476)	2,499	(9,476)	2,499
Equity		$ (36,611)	$ (31,737)	$ (36,611)	$ (31,737)
[1]	Beginning in the second quarter of 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 impact of these changes on reported segment revenues was immaterial and in the nine months ended September 30, 2019, 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.

Business Segment Information _2

Business Segment Information - Additional Information (Detail) - People's Republic of China, including Hong Kong - Geographic Concentration Risk	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues
Concentration Risk [Line Items]
Concentration percentage	30.00%	26.00%	31.00%	26.00%
Operating Income
Concentration Risk [Line Items]
Concentration percentage	26.00%	26.00%	30.00%	27.00%