Expeditors International of Washington (EXPD) 10-Q 6 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 03, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
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		168,885,812
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	Mar. 31, 2021	Dec. 31, 2020
Current Assets:
Cash and cash equivalents	$ 1,793,393	$ 1,527,791
Accounts receivable, less allowance for credit loss of $5,941 at March 31, 2021 and $5,579 at December 31, 2020	2,227,039	1,998,055
Deferred contract costs	387,845	327,448
Other	85,918	110,250
Total current assets	4,494,195	3,963,544
Property and equipment, less accumulated depreciation and amortization of $523,829 at March 31, 2021 and $516,988 at December 31, 2020	497,376	506,425
Operating lease right-of-use assets	438,667	432,723
Goodwill	7,927	7,927
Other assets, net	16,832	16,884
Total assets	5,454,997	4,927,503
Current Liabilities:
Accounts payable	1,295,178	1,136,859
Accrued expenses, primarily salaries and related costs	311,767	257,021
Contract liabilities	447,779	379,722
Current portion of operating lease liabilities	76,128	74,004
Federal, state and foreign income taxes	64,170	45,437
Total current liabilities	2,195,022	1,893,043
Noncurrent portion of operating lease liabilities	369,286	364,185
Deferred federal and state income taxes, net	12,039	7,048
Commitments and contingencies
Shareholders’ Equity:
Preferred stock, none issued	0	0
Common stock, par value $0.01 per share. Issued and outstanding: 168,808 shares at March 31, 2021 and 169,294 shares at December 31, 2020	1,688	1,693
Additional paid-in capital	101,269	157,496
Retained earnings	2,887,323	2,600,201
Accumulated other comprehensive loss	(115,486)	(99,753)
Total shareholders’ equity	2,874,794	2,659,637
Noncontrolling interest	3,856	3,590
Total equity	2,878,650	2,663,227
Total liabilities and equity	$ 5,454,997	$ 4,927,503

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for credit loss	$ 5,941	$ 5,579
Property and equipment, accumulated depreciation	$ 523,829	$ 516,988
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	168,808	169,294
Common stock, shares outstanding	168,808	169,294

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		$ 3,357,540	$ 1,901,864
Operating Expenses:
Direct Operating Costs	[1]	2,406,004	1,286,728
Salaries and related		452,105	342,040
Rent and occupancy		45,280	42,524
Depreciation and amortization		12,987	12,660
Selling and promotion		3,070	8,243
Other		52,579	50,614
Total operating expenses		2,972,025	1,742,809
Operating income		385,515	159,055
Other Income (Expense):
Interest income		1,946	4,807
Other, net		3,000	3,384
Other income, net		4,946	8,191
Earnings before income taxes		390,461	167,246
Income tax expense		102,511	44,464
Net earnings		287,950	122,782
Less net earnings attributable to the noncontrolling interest		730	438
Net earnings attributable to shareholders		$ 287,220	$ 122,344
Diluted earnings attributable to shareholders per share		$ 1.67	$ 0.71
Basic earnings attributable to shareholders per share		$ 1.70	$ 0.73
Weighted average diluted shares outstanding		171,551	171,450
Weighted average basic shares outstanding		169,214	168,735
Airfreight services
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		$ 1,476,961	$ 709,039
Operating Expenses:
Direct Operating Costs		1,105,590	520,169
Ocean freight and ocean services
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		958,178	493,427
Operating Expenses:
Direct Operating Costs		746,701	366,483
Customs brokerage and other services
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		922,401	699,398
Operating Expenses:
Direct Operating Costs		$ 553,713	$ 400,076
[1]	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
	Mar. 31, 2021	Mar. 31, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 287,950	$ 122,782
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax (benefit) expense of $(3,393) and $1,174 for the three months ended March 31, 2021 and 2020	(16,197)	(38,849)
Other comprehensive loss	(16,197)	(38,849)
Comprehensive income	271,753	83,933
Less comprehensive income attributable to the noncontrolling interest	266	148
Comprehensive income attributable to shareholders	$ 271,487	$ 83,785

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Other Comprehensive Income Loss Tax Parenthetical Disclosures [Abstract]
Foreign currency translation adjustments, tax (benefit) expense	$ (3,393)	$ 1,174

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating Activities:
Net earnings	$ 287,950	$ 122,782
Adjustments to reconcile net earnings to net cash from operating activities:
Provisions for losses on accounts receivable	1,199	1,820
Deferred income tax expense (benefit)	8,151	(5,139)
Stock compensation expense	11,185	11,156
Depreciation and amortization	12,987	12,660
Other, net	551	433
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(252,914)	16,680
Increase in accounts payable and accrued expenses	233,153	917
Increase in deferred contract costs	(71,258)	(16,068)
Increase in contract liabilities	79,590	21,201
Increase in income taxes payable, net	46,638	10,488
Increase in other, net	(1,488)	(11,930)
Net cash from operating activities	355,744	165,000
Investing Activities:
Purchase of property and equipment	(8,391)	(6,127)
Other, net	(34)	(143)
Net cash from investing activities	(8,425)	(6,270)
Financing Activities:
Proceeds from issuance of common stock	19,757	23,399
Repurchases of common stock	(85,997)	(283,240)
Payments for taxes related to net share settlement of equity awards	(1,275)	(1,396)
Net cash from financing activities	(67,515)	(261,237)
Effect of exchange rate changes on cash and cash equivalents	(14,202)	(16,011)
Change in cash and cash equivalents	265,602	(118,518)
Cash and cash equivalents at beginning of period	1,527,791	1,230,491
Cash and cash equivalents at end of period	1,793,393	1,111,973
Taxes Paid:
Income taxes	$ 46,607	$ 35,304

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, 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
Increase (Decrease) in Equity [Roll Forward]
Shares issued under employee stock plans	22,003		$ 6	21,997				22,003
Shares issued under employee stock plans (in shares)			571
Shares repurchased under provisions of stock repurchase plan	(283,240)		$ (40)	(35,799)	(247,401)			(283,240)
Shares repurchased under provisions of stock repurchase plan (in shares)			(4,000)
Stock compensation expense	11,156			11,156				11,156
Net earnings	122,782				122,344			122,344		438
Other comprehensive income loss	(38,849)						(38,559)	(38,559)		(290)
Dividends paid				125	(125)
Balance at Mar. 31, 2020	2,037,145		$ 1,662	682	2,202,208		(169,746)	2,034,806		2,339
Balance (in shares) at Mar. 31, 2020			166,193
Balance at Dec. 31, 2020	$ 2,663,227		$ 1,693	157,496	2,600,201		(99,753)	2,659,637		3,590
Balance (in shares) at Dec. 31, 2020	169,294		169,294
Increase (Decrease) in Equity [Roll Forward]
Shares issued under employee stock plans	$ 18,482		$ 4	18,478				18,482
Shares issued under employee stock plans (in shares)			439
Shares repurchased under provisions of stock repurchase plan	(85,997)		$ (9)	(85,988)				(85,997)
Shares repurchased under provisions of stock repurchase plan (in shares)			(925)
Stock compensation expense	11,185			11,185				11,185
Net earnings	287,950				287,220			287,220		730
Other comprehensive income loss	(16,197)						(15,733)	(15,733)		(464)
Dividends paid				98	(98)
Balance at Mar. 31, 2021	$ 2,878,650		$ 1,688	$ 101,269	$ 2,887,323		$ (115,486)	$ 2,874,794		$ 3,856
Balance (in shares) at Mar. 31, 2021	168,808		168,808

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
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 19, 2021. 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 December 31, 2020. 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 The Company’s trade accounts receivable present similar credit risk characteristics and the allowance for credit loss is estimated on a collective basis, using a credit loss-rate method leveraging historical credit loss information and including considerations of the current economic environment. Additional allowances may be necessary in the future if changes in economic conditions are significan t $5,941 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. The Company uses estimates primarily in the following areas: accounts receivable valuation, accrual of costs related to ancillary services the Company provides, self-insured liabilities, 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.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2021
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. During the three months ended March 31, 2021 and 2020, the Company did not grant any share-based 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. No shares were issued in the three months ended March 31, 2021 and 2020, 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 and employee stock purchase rights plans. This expense, adjusted for expected performance and 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. Restricted stock units (RSUs) and performance share units (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	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Note 3. Income Taxes During 2020 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. It is possible that additional guidance could 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 months ended March 31, 2021 and 2020, there was no BEAT expense and GILTI expense was insignificant. The Company’s consolidated effective income tax rate was 26.3% for the three months ended March 31, 2021, respectively, as compared to 26.6% The effect of higher average tax rates related to 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). The Company is subject to taxation in various states and many foreign tax jurisdictions including the People’s Republic of China, 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 being required. 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 2021. In addition, changes in state, federal, 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 months ended March 31, 2021 and 2020.

Basic and Diluted Earnings per

Basic and Diluted Earnings per Share	3 Months Ended
	Mar. 31, 2021
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 March 31, Net earnings attributable to shareholders Weighted average shares Earnings per share 2021 Basic earnings attributable to shareholders $ 287,220 169,214 $ 1.70 Effect of dilutive potential common shares — 2,337 — Diluted earnings attributable to shareholders $ 287,220 171,551 $ 1.67 2020 Basic earnings attributable to shareholders $ 122,344 168,735 $ 0.73 Effect of dilutive potential common shares — 2,715 — Diluted earnings attributable to shareholders $ 122,344 171,450 $ 0.71 Substantially all outstanding potential common shares as of March 31, 2021 and 2020 were dilutive.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2021
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 three months ended March 31, 2021, 925 shares were repurchased at an average price of $92.98 Accumulated other comprehensive loss consisted entirely of foreign currency translation adjustments, net of related income tax effects, for all the periods presented. Subsequent to the end of the first quarter of 2021, on May 4, 2021, the Board of Directors declared a semi-annual dividend of $0.58 per share payable on June 15, 2021 to shareholders of record as of June 1, 2021.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2021
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: March 31, 2021 December 31, 2020 Cost Fair Value Cost Fair Value Cash and Cash Equivalents: Cash and overnight deposits $ 792,947 $ 792,947 $ 602,112 $ 602,112 Corporate commercial paper 938,412 938,471 872,287 872,350 Time deposits 62,034 62,034 53,392 53,392 Total cash and cash equivalents $ 1,793,393 $ 1,793,452 $ 1,527,791 $ 1,527,854 The fair value of corporate commercial paper and time deposits is based on the use of market interest rates for identical or similar assets (Level 2 fair value measurement).

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021, the amounts accrued for these claims, lawsuits, government investigations and other legal matters are not significant to the Company's operations, cash flows or financial position. At this time, the Company is unable to estimate any additional loss or range of reasonably possible losses, if any, beyond the amounts recorded, that might result from the resolution of these matters.

Business Segment Information

Business Segment Information	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021: Revenues $ 875,392 94,858 44,864 1,325,621 363,682 493,718 160,609 (1,204 ) 3,357,540 Directly related cost of transportation and other expenses 1 $ 502,637 53,791 26,700 1,084,102 283,860 334,294 121,212 (592 ) 2,406,004 Salaries and other operating expenses 2 $ 238,698 25,737 12,377 106,920 43,165 109,455 30,275 (606 ) 566,021 Operating income $ 134,057 15,330 5,787 134,599 36,657 49,969 9,122 (6 ) 385,515 Identifiable assets at period end $ 2,747,984 194,050 93,072 988,954 331,271 853,944 265,495 (19,773 ) 5,454,997 Capital expenditures $ 3,025 122 53 357 579 3,554 701 — 8,391 Equity $ 1,985,265 73,066 32,632 342,233 148,293 218,198 121,040 (42,077 ) 2,878,650 For the three months ended March 31, 2020: Revenues $ 650,407 81,831 37,890 537,955 169,042 320,640 105,039 (940 ) 1,901,864 Directly related cost of transportation and other expenses 1 $ 373,961 45,890 23,765 425,301 121,282 221,998 74,976 (445 ) 1,286,728 Salaries and other operating expenses 2 $ 225,944 23,712 11,749 57,433 29,908 81,854 25,950 (469 ) 456,081 Operating income $ 50,502 12,229 2,376 55,221 17,852 16,788 4,113 (26 ) 159,055 Identifiable assets at period end $ 1,858,250 135,810 68,402 512,808 179,508 554,831 200,382 (24 ) 3,509,967 Capital expenditures $ 4,497 61 102 325 188 645 309 — 6,127 Equity $ 1,369,580 63,378 28,020 237,255 102,001 159,222 113,349 (35,660 ) 2,037,145 1 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. 2 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 three months ended March 31, 2021 and 2020 were each significantly impacted by the effects of the global pandemic in divergent ways. In the first quarter of 2021, the Company experienced strong volumes and high sell and buy rates as a result of imbalances between demand and carrier capacity and continuing effects of disruptions in supply chains originating in measures to combat the pandemic in 2020. This is in contrast with slower activity in North Asia in the first quarter of 2020 as the pandemic resulted in temporary closures and limited operations in the Company’s China offices. Shipments were also rerouted or delayed by customers and service providers as they were taking their own precautionary measures. These impacts are affecting all of the Company’s geographical segments and most notably the year-over-year comparability of the North Asia segment. In the first quarter of 2021, the People's Republic of China, including Hong Kong, represented 32% and 27%, respectively, of the Company’s total revenues and total operating income, whereas in the first quarter of 2020 it represented 23% and 25%, respectively.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
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 19, 2021. 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 December 31, 2020.
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 The Company’s trade accounts receivable present similar credit risk characteristics and the allowance for credit loss is estimated on a collective basis, using a credit loss-rate method leveraging historical credit loss information and including considerations of the current economic environment. Additional allowances may be necessary in the future if changes in economic conditions are significan t $5,941 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. The Company uses estimates primarily in the following areas: accounts receivable valuation, accrual of costs related to ancillary services the Company provides, self-insured liabilities, 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.
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 and employee stock purchase rights plans. This expense, adjusted for expected performance and 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. Restricted stock units (RSUs) and performance share units (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 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. It is possible that additional guidance could 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 months ended March 31, 2021 and 2020, 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)	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table reconciles the numerator and the denominator of the basic and diluted per share computations for earnings attributable to shareholders: Three months ended March 31, Net earnings attributable to shareholders Weighted average shares Earnings per share 2021 Basic earnings attributable to shareholders $ 287,220 169,214 $ 1.70 Effect of dilutive potential common shares — 2,337 — Diluted earnings attributable to shareholders $ 287,220 171,551 $ 1.67 2020 Basic earnings attributable to shareholders $ 122,344 168,735 $ 0.73 Effect of dilutive potential common shares — 2,715 — Diluted earnings attributable to shareholders $ 122,344 171,450 $ 0.71

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Cash and Cash Equivalents by Balance Sheet Grouping	Cash and cash equivalents consist of the following: March 31, 2021 December 31, 2020 Cost Fair Value Cost Fair Value Cash and Cash Equivalents: Cash and overnight deposits $ 792,947 $ 792,947 $ 602,112 $ 602,112 Corporate commercial paper 938,412 938,471 872,287 872,350 Time deposits 62,034 62,034 53,392 53,392 Total cash and cash equivalents $ 1,793,393 $ 1,793,452 $ 1,527,791 $ 1,527,854

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021: Revenues $ 875,392 94,858 44,864 1,325,621 363,682 493,718 160,609 (1,204 ) 3,357,540 Directly related cost of transportation and other expenses 1 $ 502,637 53,791 26,700 1,084,102 283,860 334,294 121,212 (592 ) 2,406,004 Salaries and other operating expenses 2 $ 238,698 25,737 12,377 106,920 43,165 109,455 30,275 (606 ) 566,021 Operating income $ 134,057 15,330 5,787 134,599 36,657 49,969 9,122 (6 ) 385,515 Identifiable assets at period end $ 2,747,984 194,050 93,072 988,954 331,271 853,944 265,495 (19,773 ) 5,454,997 Capital expenditures $ 3,025 122 53 357 579 3,554 701 — 8,391 Equity $ 1,985,265 73,066 32,632 342,233 148,293 218,198 121,040 (42,077 ) 2,878,650 For the three months ended March 31, 2020: Revenues $ 650,407 81,831 37,890 537,955 169,042 320,640 105,039 (940 ) 1,901,864 Directly related cost of transportation and other expenses 1 $ 373,961 45,890 23,765 425,301 121,282 221,998 74,976 (445 ) 1,286,728 Salaries and other operating expenses 2 $ 225,944 23,712 11,749 57,433 29,908 81,854 25,950 (469 ) 456,081 Operating income $ 50,502 12,229 2,376 55,221 17,852 16,788 4,113 (26 ) 159,055 Identifiable assets at period end $ 1,858,250 135,810 68,402 512,808 179,508 554,831 200,382 (24 ) 3,509,967 Capital expenditures $ 4,497 61 102 325 188 645 309 — 6,127 Equity $ 1,369,580 63,378 28,020 237,255 102,001 159,222 113,349 (35,660 ) 2,037,145 1 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. 2 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	Mar. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Accounts receivable, allowance for credit loss	$ 5,941	$ 5,579

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
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	0
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock issued during period, shares, employee stock purchase plans	0	0

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Taxes [Line Items]
Income tax expense	$ 102,511	$ 44,464
Effective income tax rate reconciliation, percent	26.30%	26.60%
Base Erosion and Anti-Abuse Tax
Income Taxes [Line Items]
Income tax expense	$ 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
	Mar. 31, 2021	Mar. 31, 2020
Net Earnings Attributable to Shareholders
Basic earnings attributable to shareholders	$ 287,220	$ 122,344
Diluted earnings attributable to shareholders	$ 287,220	$ 122,344
Weighted Average Shares
Weighted average basic shares outstanding	169,214	168,735
Effect of dilutive potential common shares	2,337	2,715
Weighted average diluted shares outstanding	171,551	171,450
Earnings Per Share
Basic earnings attributable to shareholders per share	$ 1.70	$ 0.73
Diluted earnings attributable to shareholders per share	$ 1.67	$ 0.71

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - $ / shares shares in Thousands	May 04, 2021	Mar. 31, 2021	Mar. 31, 2020
Subsequent Event
Class of Stock [Line Items]
Date of declaration of dividends	May 4, 2021
Dividend declared per share	$ 0.58
Date of dividend payment	Jun. 15, 2021
Dividends payable to shareholders date of record	Jun. 1, 2021
Discretionary Plan
Class of Stock [Line Items]
Expected common stock shares issued and outstanding		160,000
Shares repurchased		925	4,000
Average price per share		$ 92.98	$ 70.81

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	$ 1,793,393	$ 1,527,791
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	1,793,452	1,527,854
Cash and Overnight Deposits | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	792,947	602,112
Cash and Overnight Deposits | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	792,947	602,112
Corporate Commercial Paper | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	938,412	872,287
Corporate Commercial Paper | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	938,471	872,350
Time Deposits | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	62,034	53,392
Time Deposits | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	$ 62,034	$ 53,392

Business Segment Information -

Business Segment Information - Financial Information Regarding Company's Operations by Geographic Area (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		$ 3,357,540	$ 1,901,864
Directly related cost of transportation and other expenses	[1]	2,406,004	1,286,728
Salaries and other operating expenses	[2]	566,021	456,081
Operating income		385,515	159,055
Identifiable assets at period end		5,454,997	3,509,967	$ 4,927,503
Capital expenditures		8,391	6,127
Equity		2,878,650	2,037,145	$ 2,663,227	$ 2,197,219
Operating Segments | United States Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		875,392	650,407
Directly related cost of transportation and other expenses	[1]	502,637	373,961
Salaries and other operating expenses	[2]	238,698	225,944
Operating income		134,057	50,502
Identifiable assets at period end		2,747,984	1,858,250
Capital expenditures		3,025	4,497
Equity		1,985,265	1,369,580
Operating Segments | Other North America Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		94,858	81,831
Directly related cost of transportation and other expenses	[1]	53,791	45,890
Salaries and other operating expenses	[2]	25,737	23,712
Operating income		15,330	12,229
Identifiable assets at period end		194,050	135,810
Capital expenditures		122	61
Equity		73,066	63,378
Operating Segments | Latin America Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		44,864	37,890
Directly related cost of transportation and other expenses	[1]	26,700	23,765
Salaries and other operating expenses	[2]	12,377	11,749
Operating income		5,787	2,376
Identifiable assets at period end		93,072	68,402
Capital expenditures		53	102
Equity		32,632	28,020
Operating Segments | North Asia Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		1,325,621	537,955
Directly related cost of transportation and other expenses	[1]	1,084,102	425,301
Salaries and other operating expenses	[2]	106,920	57,433
Operating income		134,599	55,221
Identifiable assets at period end		988,954	512,808
Capital expenditures		357	325
Equity		342,233	237,255
Operating Segments | South Asia Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		363,682	169,042
Directly related cost of transportation and other expenses	[1]	283,860	121,282
Salaries and other operating expenses	[2]	43,165	29,908
Operating income		36,657	17,852
Identifiable assets at period end		331,271	179,508
Capital expenditures		579	188
Equity		148,293	102,001
Operating Segments | Europe Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		493,718	320,640
Directly related cost of transportation and other expenses	[1]	334,294	221,998
Salaries and other operating expenses	[2]	109,455	81,854
Operating income		49,969	16,788
Identifiable assets at period end		853,944	554,831
Capital expenditures		3,554	645
Equity		218,198	159,222
Operating Segments | Middle East Africa and India Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		160,609	105,039
Directly related cost of transportation and other expenses	[1]	121,212	74,976
Salaries and other operating expenses	[2]	30,275	25,950
Operating income		9,122	4,113
Identifiable assets at period end		265,495	200,382
Capital expenditures		701	309
Equity		121,040	113,349
Intersegment Eliminations
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		(1,204)	(940)
Directly related cost of transportation and other expenses	[1]	(592)	(445)
Salaries and other operating expenses	[2]	(606)	(469)
Operating income		(6)	(26)
Identifiable assets at period end		(19,773)	(24)
Equity		$ (42,077)	$ (35,660)
[1]	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.
[2]	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
	Mar. 31, 2021	Mar. 31, 2020
Revenues
Concentration Risk [Line Items]
Concentration percentage	32.00%	23.00%
Operating Income
Concentration Risk [Line Items]
Concentration percentage	27.00%	25.00%