Expeditors International of Washington (EXPD) 10-Q 9 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	May 05, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
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		167,753,884
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, 2022	Dec. 31, 2021
Current Assets:
Cash and cash equivalents	$ 2,139,626	$ 1,728,692
Accounts receivable, less allowance for credit loss of $5,677 at March 31, 2022 and $6,686 at December 31, 2021	3,934,856	3,810,286
Deferred contract costs	817,435	987,266
Other	70,812	108,801
Total current assets	6,962,729	6,635,045
Property and equipment, less accumulated depreciation and amortization of $553,048 at March 31, 2022 and $541,677 at December 31, 2021	504,125	487,870
Operating lease right-of-use assets	458,637	459,158
Goodwill	7,927	7,927
Deferred federal and state income taxes, net	5,573	729
Other assets, net	17,002	19,200
Total assets	7,955,993	7,609,929
Current Liabilities:
Accounts payable	1,980,439	2,012,461
Accrued liabilities, primarily salaries and related costs	607,882	403,625
Contract liabilities	952,370	1,142,026
Current portion of operating lease liabilities	85,076	82,019
Federal, state and foreign income taxes	96,205	86,166
Total current liabilities	3,721,972	3,726,297
Noncurrent portion of operating lease liabilities	384,690	385,641
Commitments and contingencies
Shareholders’ Equity:
Preferred stock, none issued	0	0
Common stock, par value $0.01 per share. Issued and outstanding: 167,477 shares at March 31, 2022 and 167,210 shares at December 31, 2021	1,675	1,672
Additional paid-in capital	13,343	3,160
Retained earnings	3,965,803	3,620,008
Accumulated other comprehensive loss	(137,429)	(130,414)
Total shareholders’ equity	3,843,392	3,494,426
Noncontrolling interest	5,939	3,565
Total equity	3,849,331	3,497,991
Total liabilities and equity	$ 7,955,993	$ 7,609,929

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for credit loss	$ 5,677	$ 6,686
Property and equipment, accumulated depreciation	$ 553,048	$ 541,677
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	167,477	167,210
Common stock, shares outstanding	167,477	167,210

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2022	Mar. 31, 2021
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		$ 4,664,298	$ 3,198,820	[1]
Operating Expenses:
Directly related cost of transportation and other expenses	[2]	3,516,111	2,247,284	[1]
Salaries and related		538,940	452,105
Rent and occupancy		50,928	45,280
Depreciation and amortization		12,975	12,987
Selling and promotion		4,048	3,070
Other		79,536	52,579
Total operating expenses		4,202,538	2,813,305
Operating income		461,760	385,515
Other Income (Expense):
Interest income		1,892	1,946
Other, net		7,527	3,000
Other income, net		9,419	4,946
Earnings before income taxes		471,179	390,461
Income tax expense		121,699	102,511
Net earnings		349,480	287,950
Less net earnings attributable to the noncontrolling interest		3,371	730
Net earnings attributable to shareholders		$ 346,109	$ 287,220
Diluted earnings attributable to shareholders per share		$ 2.05	$ 1.67
Basic earnings attributable to shareholders per share		$ 2.07	$ 1.70
Weighted average diluted shares outstanding		169,216	171,551
Weighted average basic shares outstanding		167,499	169,214
Airfreight services
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		$ 1,598,555	$ 1,325,915
Operating Expenses:
Directly related cost of transportation and other expenses		1,142,546	954,544
Ocean freight and ocean services
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		1,976,246	953,912
Operating Expenses:
Directly related cost of transportation and other expenses		1,600,243	742,435
Customs brokerage and other services
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax		1,089,497	918,993
Operating Expenses:
Directly related cost of transportation and other expenses		$ 773,322	$ 550,305
[1]	See Note 1 A, Summary of Significant Accounting Policies.
[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
	Mar. 31, 2022	Mar. 31, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 349,480	$ 287,950
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of income tax benefit of $1,500 and $3,393 for the three months ended March 31, 2022 and 2021	(8,012)	(16,197)
Other comprehensive loss	(8,012)	(16,197)
Comprehensive income	341,468	271,753
Less comprehensive income attributable to the noncontrolling interest	2,374	266
Comprehensive income attributable to shareholders	$ 339,094	$ 271,487

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other Comprehensive Income Loss Tax Parenthetical Disclosures [Abstract]
Foreign currency translation adjustments, tax benefit	$ 1,500	$ 3,393

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating Activities:
Net earnings	$ 349,480	$ 287,950
Adjustments to reconcile net earnings to net cash from operating activities:
(Recoveries) provisions for losses on accounts receivable	(416)	1,199
Deferred income tax (benefit) expense	(3,236)	8,151
Stock compensation expense	11,603	11,185
Depreciation and amortization	12,975	12,987
Other, net	455	551
Changes in operating assets and liabilities:
Increase in accounts receivable	(132,348)	(252,914)
Increase in accounts payable and accrued liabilities	140,191	233,238
Decrease (increase) in deferred contract costs	173,930	(71,258)
(Decrease) increase in contract liabilities	(193,357)	79,590
Increase in income taxes payable, net	46,259	46,638
Decrease (increase) in other, net	8,410	(1,488)
Net cash from operating activities	413,946	355,829
Investing Activities:
Purchase of property and equipment	(14,412)	(8,391)
Other, net	79	(34)
Net cash from investing activities	(14,333)	(8,425)
Financing Activities:
Proceeds from borrowing on lines of credit, net	19,490	(85)
Proceeds from issuance of common stock	5,751	19,757
Repurchases of common stock	0	(85,997)
Payments for taxes related to net share settlement of equity awards	(7,482)	(1,275)
Net cash from financing activities	17,759	(67,600)
Effect of exchange rate changes on cash and cash equivalents	(6,438)	(14,202)
Change in cash and cash equivalents	410,934	265,602
Cash and cash equivalents at beginning of period	1,728,692	1,527,791
Cash and cash equivalents at end of period	2,139,626	1,793,393
Taxes Paid:
Income taxes	$ 77,960	$ 46,607

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Total shareholders' equity	Noncontrolling interest
Balance at Dec. 31, 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
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
Balance at Dec. 31, 2021	$ 3,497,991	$ 1,672	3,160	3,620,008	(130,414)	3,494,426	3,565
Balance (in shares) at Dec. 31, 2021	167,210	167,210
Increase (Decrease) in Equity [Roll Forward]
Shares issued under employee stock plans	$ (1,731)	$ 3	(1,734)			(1,731)
Shares issued under employee stock plans (in shares)		267
Stock compensation expense	11,603		11,603			11,603
Net earnings	349,480			346,109		346,109	3,371
Other comprehensive income loss	(8,012)				(7,015)	(7,015)	(997)
Dividends paid			314	(314)
Balance at Mar. 31, 2022	$ 3,849,331	$ 1,675	$ 13,343	$ 3,965,803	$ (137,429)	$ 3,843,392	$ 5,939
Balance (in shares) at Mar. 31, 2022	167,477	167,477

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies A. Basis of Presentation Expeditors International of Washington, Inc. (the Company) is a non-asset based provider of global logistics services operating through a worldwide network of offices and exclusive or non-exclusive agents. The Company’s customers include retailing and wholesaling, electronics, high 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 March 15, 2022. 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. Certain prior year amounts have been reclassified to conform to the current year presentation, including revisions to correct for immaterial errors as previously disclosed in the Company’s second quarter results on Form 10-Q filed on August 5, 2021 and in the 2021 Form 10-K. 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, 2021. The Company evaluates whether amounts billed to customers should be reported as gross or net basis. Generally, revenue is recorded on a gross basis when the Company is primarily responsible for fulfilling the promise to provide the services, when it assumes the risk of loss, when it has discretion in setting the prices for the services to the customers, and when the Company has the ability to direct the use of the services provided by the third party. When revenue is recorded on a net basis, the amounts earned are determined using a fixed fee, a per unit of activity fee or a combination thereof. For revenues earned in other capacities, for instance, when we do not issue a HAWB, a HOBL or a House Seaway Bill or otherwise act solely as an agent for the shipper, only the commissions and fees earned for such services are included in revenues. In these transactions, the Company is not a principal and report only commissions and fees earned in revenue. 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 e xercise 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 exclude s variable payments from ROU assets and lease liabilities to the extent not considered fixed, and instead expense s 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 i n 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 $ 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 performs, typically at the destination location, 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, including estimates for potential claims as a result of the downtime caused by the cyber-attack, calculation of share-based compensation expense and estimates related to determining the lease term and discount rate when measuring ROU assets and lease liabilities. In the first quarter of 2022, ancillary services include additional estimated costs for demurrage charges incurred as a result of downtime caused by the cyber-attack. See Note 8 for further information on estimates related to the cyber-attack. Actual results could be materially different from the estimated provisions and accruals recorded. F . Share-Based Compensation The Company has historically granted the majority of its share-based awards during the second quarter of each fiscal year. The grant of employee stock purchase rights and the issuance of shares under the employee stock purchase plan are historically made in the third quarter of each fiscal year. The Company recognizes stock compensation expense based on the fair value of awards granted to employees and directors under the Company’s Amended and Restated 2017 Omnibus 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, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Note 2. Income Taxes During 2020 and 2021, 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, 2022, and 2021, there was no BEAT expense and GILTI expense was insignificant. The Company’s consolidated effective income tax rate was 25.8%, for the three months ended March 31, 2022, as compared to 26.3% for the comparable period in 2021. Both periods benefited from U.S. income tax deductions for Foreign-derived intangible income (FDII).

Basic and Diluted Earnings per

Basic and Diluted Earnings per Share	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Basic and Diluted Earnings per Share	Note 3. 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 2022 Basic earnings attributable to shareholders $ 346,109 167,499 $ 2.07 Effect of dilutive potential common shares — 1,717 — Diluted earnings attributable to shareholders $ 346,109 169,216 $ 2.05 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 Substantially all outstanding potential common shares as of March 31, 2022 and 2021 were dilutive.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2022
Stockholders Equity Note [Abstract]
Shareholders' Equity	Note 4. 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. On May 2, 2022, the Board of Directors amended the plan to further authorize repurchases down to 150,000 shares. This authorization has no expiration date. During the three months ended March 31, 2022, there were no shares repurchased, compared to 925 shares at an average price of $92.98 per share during the same period in 2021. 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 2022, on May 2, 2022, the Board of Directors declared a semi-annual dividend of $0.67 per share payable on June 15, 2022 to shareholders of record as of June 1, 2022.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 5. 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, 2022 December 31, 2021 Cost Fair Value Cost Fair Value Cash and Cash Equivalents: Cash and overnight deposits $ 2,080,077 $ 2,080,077 $ 1,241,565 $ 1,241,565 Corporate commercial paper — — 423,261 423,279 Time deposits 59,548 59,548 63,866 63,866 Total cash and cash equivalents $ 2,139,626 $ 2,139,626 $ 1,728,692 $ 1,728,710 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, 2022
Loss Contingency [Abstract]
Contingencies	Note 6. 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, 2022, 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, potential claims resulting from the downtime caused by the cyber-attack, see further information in Note 8.

Business Segment Information

Business Segment Information	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Business Segment Information	Note 7. 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, 2022: Revenues $ 1,241,224 104,610 57,707 1,769,016 646,329 575,791 270,681 (1,060 ) 4,664,298 Directly related cost of transportation and other expenses 1 $ 763,423 64,232 33,857 1,480,093 538,883 417,620 218,100 (97 ) 3,516,111 Salaries and other operating expenses 2 $ 333,649 24,869 13,101 123,113 45,329 109,269 38,042 (945 ) 686,427 Operating income $ 144,152 15,509 10,749 165,810 62,117 48,902 14,539 (18 ) 461,760 Identifiable assets at period end $ 4,199,798 283,674 147,391 1,329,469 591,672 1,076,451 358,722 (31,184 ) 7,955,993 Capital expenditures $ 9,477 1,078 109 531 290 2,058 869 — 14,412 Equity $ 2,753,888 108,208 52,188 337,802 189,168 317,436 133,250 (42,609 ) 3,849,331 For the three months ended March 31, 2021: Revenues 3 $ 875,390 94,117 44,864 1,209,048 349,766 466,333 160,506 (1,204 ) 3,198,820 Directly related cost of transportation and other expenses 1,3 $ 502,635 53,050 26,700 967,529 269,944 306,909 121,109 (592 ) 2,247,284 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 1 2 3

Cyber-Attack

Cyber-Attack	3 Months Ended
	Mar. 31, 2022
Extraordinary And Unusual Items [Abstract]
Cyber-Attack	Note 8. Cyber-Attack On February 20, 2022, management determined that the Company was the subject of a targeted -attack. Upon discovering the incident, the Company shut down most of its connectivity, operating and accounting systems globally to manage the safety of its overall global systems environment, and initiated its cybersecurity incident response plan. The Company's security teams, supplemented by commercial cybersecurity experts and in collaboration with law enforcement, worked to remediate this cyber-attack. The Company undertook extensive efforts to identify, contain, eradicate and methodically recover from this attack as rapidly as possible. The Company had limited ability to conduct operations for a period of approximately three weeks including but not limited to arranging for shipments of freight or managing customs and distribution activities for its customers’ shipments and performing accounting functions. The Company’s teams worked to maintain its business operations and minimize the impact on its employees , customers and operating partners , including regulatory agencies . While the Company continue s to navigate the residual effects and incorporate learnings from the cyber-attack, its core systems are now being utilized to deliver services . In the first quarter the Company incurred, as a result of its inability to timely process and move shipments through ports, approximately $40 million in incremental demurrage charges, where the Company has direct liability for this obligation. These costs are recorded in customs brokerage and other services expenses. Additionally, in the first quarter, the Company incurred investigation, recovery, and remediation expenses, including costs to recover its operational and accounting systems and to enhance cybersecurity protections. These costs are primarily comprised of various consulting services including cybersecurity experts, outside legal advisors, and other IT professional expenses. The Company also recorded estimated liabilities for potential shipment-related claims. Total amounts recorded for these items were approximately $20 million and are recorded in other operating expenses. The Company does not expect to incur significant capital expenditures as a result of the cyber-attack. The Company may incur additional expenses which could include third-party expenses, incremental information services costs, legal fees, or indemnities to customers or business partners. When the Company’s operating systems were down, many customers worked with other providers to meet their logistics needs, resulting in lower shipment volumes in the first quarter for which the financial impact on revenues and operating income cannot be quantified. Such costs and the ongoing impacts from the downtime caused by the cyber-attack could have a further material adverse impact on the Company’s business, revenues, expenses, results of operations, cash flows and reputation. The Company is unable to estimate the ultimate direct and indirect financial impacts of this cyber-attack.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
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, electronics, high 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 March 15, 2022. 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. Certain prior year amounts have been reclassified to conform to the current year presentation, including revisions to correct for immaterial errors as previously disclosed in the Company’s second quarter results on Form 10-Q filed on August 5, 2021 and in the 2021 Form 10-K.
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, 2021. The Company evaluates whether amounts billed to customers should be reported as gross or net basis. Generally, revenue is recorded on a gross basis when the Company is primarily responsible for fulfilling the promise to provide the services, when it assumes the risk of loss, when it has discretion in setting the prices for the services to the customers, and when the Company has the ability to direct the use of the services provided by the third party. When revenue is recorded on a net basis, the amounts earned are determined using a fixed fee, a per unit of activity fee or a combination thereof. For revenues earned in other capacities, for instance, when we do not issue a HAWB, a HOBL or a House Seaway Bill or otherwise act solely as an agent for the shipper, only the commissions and fees earned for such services are included in revenues. In these transactions, the Company is not a principal and report only commissions and fees earned in revenue.
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 e xercise 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 exclude s variable payments from ROU assets and lease liabilities to the extent not considered fixed, and instead expense s 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 i n 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 $ 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 performs, typically at the destination location, 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, including estimates for potential claims as a result of the downtime caused by the cyber-attack, calculation of share-based compensation expense and estimates related to determining the lease term and discount rate when measuring ROU assets and lease liabilities. In the first quarter of 2022, ancillary services include additional estimated costs for demurrage charges incurred as a result of downtime caused by the cyber-attack. See Note 8 for further information on estimates related to the cyber-attack. Actual results could be materially different from the estimated provisions and accruals recorded.
Share-Based Compensation	F . Share-Based Compensation The Company has historically granted the majority of its share-based awards during the second quarter of each fiscal year. The grant of employee stock purchase rights and the issuance of shares under the employee stock purchase plan are historically made in the third quarter of each fiscal year. The Company recognizes stock compensation expense based on the fair value of awards granted to employees and directors under the Company’s Amended and Restated 2017 Omnibus 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 and 2021, 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, 2022, and 2021, there was no BEAT expense and GILTI expense was insignificant. The Company’s consolidated effective income tax rate was 25.8%, for the three months ended March 31, 2022, as compared to 26.3% for the comparable period in 2021. Both periods benefited from U.S. income tax deductions for Foreign-derived intangible income (FDII).
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, 2022
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 2022 Basic earnings attributable to shareholders $ 346,109 167,499 $ 2.07 Effect of dilutive potential common shares — 1,717 — Diluted earnings attributable to shareholders $ 346,109 169,216 $ 2.05 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

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2022
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, 2022 December 31, 2021 Cost Fair Value Cost Fair Value Cash and Cash Equivalents: Cash and overnight deposits $ 2,080,077 $ 2,080,077 $ 1,241,565 $ 1,241,565 Corporate commercial paper — — 423,261 423,279 Time deposits 59,548 59,548 63,866 63,866 Total cash and cash equivalents $ 2,139,626 $ 2,139,626 $ 1,728,692 $ 1,728,710

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Mar. 31, 2022
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, 2022: Revenues $ 1,241,224 104,610 57,707 1,769,016 646,329 575,791 270,681 (1,060 ) 4,664,298 Directly related cost of transportation and other expenses 1 $ 763,423 64,232 33,857 1,480,093 538,883 417,620 218,100 (97 ) 3,516,111 Salaries and other operating expenses 2 $ 333,649 24,869 13,101 123,113 45,329 109,269 38,042 (945 ) 686,427 Operating income $ 144,152 15,509 10,749 165,810 62,117 48,902 14,539 (18 ) 461,760 Identifiable assets at period end $ 4,199,798 283,674 147,391 1,329,469 591,672 1,076,451 358,722 (31,184 ) 7,955,993 Capital expenditures $ 9,477 1,078 109 531 290 2,058 869 — 14,412 Equity $ 2,753,888 108,208 52,188 337,802 189,168 317,436 133,250 (42,609 ) 3,849,331 For the three months ended March 31, 2021: Revenues 3 $ 875,390 94,117 44,864 1,209,048 349,766 466,333 160,506 (1,204 ) 3,198,820 Directly related cost of transportation and other expenses 1,3 $ 502,635 53,050 26,700 967,529 269,944 306,909 121,109 (592 ) 2,247,284 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 1 2 3

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Accounts receivable, allowance for credit loss	$ 5,677	$ 6,686

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Taxes [Line Items]
Effective income tax rate reconciliation, percent	25.80%	26.30%
Income tax expense	$ 121,699	$ 102,511
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, 2022	Mar. 31, 2021
Net Earnings Attributable to Shareholders
Basic earnings attributable to shareholders	$ 346,109	$ 287,220
Diluted earnings attributable to shareholders	$ 346,109	$ 287,220
Weighted Average Shares
Weighted average basic shares outstanding	167,499	169,214
Effect of dilutive potential common shares	1,717	2,337
Weighted average diluted shares outstanding	169,216	171,551
Earnings Per Share [Abstract]
Basic earnings attributable to shareholders per share	$ 2.07	$ 1.70
Diluted earnings attributable to shareholders per share	$ 2.05	$ 1.67

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - $ / shares	May 02, 2022	Mar. 31, 2022	Mar. 31, 2021
Subsequent Event
Class of Stock [Line Items]
Date of declaration of dividends	May 2, 2022
Dividend declared per share	$ 0.67
Date of dividend payment	Jun. 15, 2022
Dividends payable to shareholders date of record	Jun. 1, 2022
Discretionary Plan
Class of Stock [Line Items]
Expected common stock shares issued and outstanding		160,000,000
Shares repurchased		0	925,000
Average price per share			$ 92.98
Discretionary Plan | Subsequent Event
Class of Stock [Line Items]
Expected common stock shares issued and outstanding	150,000,000

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	$ 2,139,626	$ 1,728,692
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	2,139,626	1,728,710
Cash and Overnight Deposits | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	2,080,077	1,241,565
Cash and Overnight Deposits | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	2,080,077	1,241,565
Corporate Commercial Paper | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	0	423,261
Corporate Commercial Paper | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	0	423,279
Time Deposits | Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	59,548	63,866
Time Deposits | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and cash equivalents	$ 59,548	$ 63,866

Business Segment Information -

Business Segment Information - Financial Information Regarding Company's Operations by Geographic Area (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2022	Mar. 31, 2021		Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		$ 4,664,298	$ 3,198,820	[1]
Directly related cost of transportation and other expenses	[2]	3,516,111	2,247,284	[1]
Salaries and other operating expenses	[3]	686,427	566,021
Operating income		461,760	385,515
Identifiable assets at period end		7,955,993	5,454,997		$ 7,609,929
Capital expenditures		14,412	8,391
Equity		3,849,331	2,878,650		$ 3,497,991	$ 2,663,227
Operating Segments | United States Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		1,241,224	875,390	[1]
Directly related cost of transportation and other expenses	[2]	763,423	502,635	[1]
Salaries and other operating expenses	[3]	333,649	238,698
Operating income		144,152	134,057
Identifiable assets at period end		4,199,798	2,747,984
Capital expenditures		9,477	3,025
Equity		2,753,888	1,985,265
Operating Segments | Other North America Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		104,610	94,117	[1]
Directly related cost of transportation and other expenses	[2]	64,232	53,050	[1]
Salaries and other operating expenses	[3]	24,869	25,737
Operating income		15,509	15,330
Identifiable assets at period end		283,674	194,050
Capital expenditures		1,078	122
Equity		108,208	73,066
Operating Segments | Latin America Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		57,707	44,864	[1]
Directly related cost of transportation and other expenses	[2]	33,857	26,700	[1]
Salaries and other operating expenses	[3]	13,101	12,377
Operating income		10,749	5,787
Identifiable assets at period end		147,391	93,072
Capital expenditures		109	53
Equity		52,188	32,632
Operating Segments | North Asia Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		1,769,016	1,209,048	[1]
Directly related cost of transportation and other expenses	[2]	1,480,093	967,529	[1]
Salaries and other operating expenses	[3]	123,113	106,920
Operating income		165,810	134,599
Identifiable assets at period end		1,329,469	988,954
Capital expenditures		531	357
Equity		337,802	342,233
Operating Segments | South Asia Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		646,329	349,766	[1]
Directly related cost of transportation and other expenses	[2]	538,883	269,944	[1]
Salaries and other operating expenses	[3]	45,329	43,165
Operating income		62,117	36,657
Identifiable assets at period end		591,672	331,271
Capital expenditures		290	579
Equity		189,168	148,293
Operating Segments | Europe Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		575,791	466,333	[1]
Directly related cost of transportation and other expenses	[2]	417,620	306,909	[1]
Salaries and other operating expenses	[3]	109,269	109,455
Operating income		48,902	49,969
Identifiable assets at period end		1,076,451	853,944
Capital expenditures		2,058	3,554
Equity		317,436	218,198
Operating Segments | Middle East Africa and India Segment
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		270,681	160,506	[1]
Directly related cost of transportation and other expenses	[2]	218,100	121,109	[1]
Salaries and other operating expenses	[3]	38,042	30,275
Operating income		14,539	9,122
Identifiable assets at period end		358,722	265,495
Capital expenditures		869	701
Equity		133,250	121,040
Intersegment Eliminations
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		(1,060)	(1,204)	[1]
Directly related cost of transportation and other expenses	[2]	(97)	(592)	[1]
Salaries and other operating expenses	[3]	(945)	(606)
Operating income		(18)	(6)
Identifiable assets at period end		(31,184)	(19,773)
Capital expenditures		0	0
Equity		$ (42,609)	$ (42,077)
[1]	See Note 1 A, Summary of Significant Accounting Policies.
[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.

Cyber Attack - Additional Infor

Cyber Attack - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2022	Mar. 31, 2021	[2]
Unusual Or Infrequent Item [Line Items]
Directly related cost of transportation and other expenses	[1]	$ 3,516,111	$ 2,247,284
Cyber-Attack
Unusual Or Infrequent Item [Line Items]
Estimated liabilities for potential claims		20,000
Cyber-Attack | Brokerage and Other Services
Unusual Or Infrequent Item [Line Items]
Directly related cost of transportation and other expenses		$ 40,000
[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]	See Note 1 A, Summary of Significant Accounting Policies.