8-K
EXPEDITORS INTERNATIONAL OF WASHINGTON INC (EXPD)
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported): February 20, 2024 |
|---|
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
(Exact name of Registrant as Specified in Its Charter)
| Washington | 001-41871 | 91-1069248 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |
| 1015 Third Avenue | ||
| Seattle, Washington | 98104 | |
| (Address of Principal Executive Offices) | (Zip Code) | |
| Registrant’s Telephone Number, Including Area Code: 206 674-3400 | ||
| --- |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.01 per share | EXPD | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 20, 2024, Expeditors International of Washington, Inc., a Washington corporation, issued a press release announcing December 31, 2023 financial results. A copy of the press release is furnished as Exhibit 99.1 to this report.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) The following items are filed as exhibits to this report:
| 99.1 | Press release, dated February 20, 2024 issued by Expeditors International of Washington, Inc. |
|---|---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. | |||
|---|---|---|---|
| Date: | February 20, 2024 | By: | /S/ Bradley S. Powell |
| Bradley S. Powell, Senior Vice President and Chief Financial Officer |
EX-99.1
Exhibit 99.1
EARNINGS RELEASE
| By: | Expeditors International of Washington, Inc. | ||
|---|---|---|---|
| 1015 Third Avenue | |||
| Seattle, Washington 98104 | |||
| CONTACTS: | |||
| Jeffrey S. Musser | Bradley S. Powell | Geoffrey Buscher | |
| President and Chief Executive Officer | Senior Vice President and Chief Financial Officer | Director - Investor Relations | |
| (206) 674-3433 | (206) 674-3412 | (206) 892-4510 |
FOR IMMEDIATE RELEASE
EXPEDITORS REPORTS FOURTH QUARTER 2023 EPS OF $1.09
SEATTLE, WASHINGTON - February 20, 2024, Expeditors International of Washington, Inc. (NYSE:EXPD) today announced fourth quarter 2023 financial results including the following highlights compared to the same quarter of 2022:
• Diluted Net Earnings Attributable to Shareholders per share (EPS1) decreased 21% to $1.09
• Net Earnings Attributable to Shareholders decreased 28% to $159 million
• Operating Income decreased 40% to $199 million
• Revenues decreased 34% to $2.3 billion
• Airfreight tonnage volume decreased 3% and ocean container volume decreased 10%
“While ocean and air markets have been recovering from the massive disruptions brought on by the global Covid-19 pandemic, we continue to face further market uncertainty due to the current conflicts in the Middle East and on the Red Sea,” said Jeffrey S. Musser, President and Chief Executive Officer. “Further, volumes and capacity have remained uncertain due to additional capacity recently brought into the marketplace, while shippers have cautiously sought to avoid overextending their inventory levels. These factors created an environment where rates, which had fallen fairly significantly from the pandemic period, stabilized in ocean and, in the case of air, increased in the fourth quarter of 2023. If I had to use one key word to describe the fourth quarter and all of 2023, it would be ‘uncertainty.’
“As a company we have continued to remain focused on bringing expenses in line with revenue, as shown by headcount reductions. Compensation remains our second largest expenditure behind freight costs and is the area where we know we can have the largest impact from the standpoint of controlling expenses. We also know that there is more work that we can and will do to control expenses moving forward.
“We should again caution that our business is service-based, and we rely on highly skilled individuals to support our customers. History tells us that global trade operates in cycles and that we have periods when global volumes decline, as well as periods when global volumes grow. We’ve seen a year of declines in 2023, but we need to work hard to ensure that we have the right level of staffing to handle market increases and our expected growth in market share as we move forward. Managing expenses is an important role of any leadership team, but cutting expenses is only one part of effective management. Equally important is the expectation that management will grow the business. We remain committed to both.”
_______________________
1Diluted earnings attributable to shareholders per share.
NOTE: See Disclaimer on Forward-Looking Statements in this release.
Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, “Despite reducing headcount in each quarter of 2023 and bringing costs down both sequentially and year-over-year, expenses are still high when compared to our efficiency target and we are working to bring expenses down further. Even though compensation, our largest and most variable expense, is 20% lower than the same quarter a year ago, just about everything else is more expensive. We are not as efficient as we need to be for the current environment of excess capacity, weak demand, soft rates, and economic uncertainty. We continue to be focused on further aligning headcount and overhead expenses with lower levels of transactions and volumes. At the same time, we recognize the need to be prepared when tonnage and volumes eventually begin to trend upward in a rate environment that is less volatile.”
Mr. Powell noted that the Company generated $1.1 billion in cash flow from operations in 2023 and returned $1.6 billion to shareholders in share repurchases and dividends.
Expeditors is a global logistics company headquartered in Seattle, Washington. The Company employs trained professionals in 176 district offices and numerous branch locations located on six continents linked into a seamless worldwide network through an integrated information management system. Services include the consolidation or forwarding of air and ocean freight, customs brokerage, vendor consolidation, cargo insurance, time-definite transportation, order management, warehousing and distribution and customized logistics solutions.
Disclaimer on Forward-Looking Statements:
Certain statements contained in this news release are “forward-looking statements,” based on management’s views with respect to future events and underlying assumptions that involve risks and uncertainties. These forward-looking statements include statements regarding uncertainty in the ocean and air markets, including uncertainty due to conflicts in the Middle East and Red Sea; new capacity in the marketplace; cautious shipper demand and variable rate stability. Future financial performance could differ materially because of factors such as: our ability to reduce headcount and to control expenses and bring them in line with revenue; that volumes and tonnage will increase and that we will be able to grow in market share; that management is able to grow the business; that we are able to improve our efficiency; our ability to leverage the strength of our carrier relationships; the strength of our non-asset-based operating model; and our ability to remain a strong, healthy, unified and resilient organization. The normalizing of the supply chain at the end of the pandemic, along with the current uncertainty in the global economy, could have the effect of heightening many of the other risks described in Item 1A of our Annual Report on Form 10-K, including, without limitation, those related to the success of our strategy and desire to maintain historical unitary profitability, our ability to attract and retain customers, our ability to manage costs, interruptions to our information technology systems, the ability of third-party providers to perform and potential litigation as updated by our reports on Form 10-Q, filed with the Securities and Exchange Commission. These and other factors are discussed in the Company’s regulatory filings with the Securities and Exchange Commission, including those in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and the Company’s most recent Form 10-Q. The forward-looking statements contained in this news release speak only as of this date and the Company does not assume any obligation to update them except as required by law.
_______________________
1Diluted earnings attributable to shareholders per share.
NOTE: See Disclaimer on Forward-Looking Statements in this release.
Expeditors International of Washington, Inc.
Fourth quarter 2023 Earnings Release, February 20, 2024
Financial Highlights for the three and twelve months ended December 31, 2023 and 2022 (Unaudited)
(in 000's of US dollars except share data)
| Three months ended December 31, | Twelve months ended December 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||
| Revenues | $ | 2,277,768 | $ | 3,441,528 | (34)% | $ | 9,300,110 | $ | 17,071,284 | (46)% |
| Directly related cost of transportation and other expenses 1 | $ | 1,513,604 | $ | 2,425,565 | (38)% | $ | 6,054,000 | $ | 12,576,897 | (52)% |
| Salaries and other operating expenses 2 | $ | 564,766 | $ | 686,257 | (18)% | $ | 2,306,177 | $ | 2,670,016 | (14)% |
| Operating income | $ | 199,398 | $ | 329,706 | (40)% | $ | 939,933 | $ | 1,824,371 | (48)% |
| Net earnings attributable to shareholders | $ | 158,719 | $ | 219,276 | (28)% | $ | 752,883 | $ | 1,357,399 | (45)% |
| Diluted earnings attributable to shareholders per share | $ | 1.09 | $ | 1.38 | (21)% | $ | 5.01 | $ | 8.26 | (39)% |
| Basic earnings attributable to shareholders per share | $ | 1.09 | $ | 1.39 | (22)% | $ | 5.05 | $ | 8.33 | (39)% |
| Diluted weighted average shares outstanding | 145,891 | 158,535 | 150,186 | 164,427 | ||||||
| Basic weighted average shares outstanding | 144,979 | 157,269 | 149,141 | 163,010 |
1Directly 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.
2Salaries 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.
During the three and twelve months ended December 31, 2023, we repurchased 1.6 million and 12.1 million shares of common stock at an average price of $119.22 and $114.68 per share, respectively. During the three and twelve months ended December 31, 2022, we repurchased 5.0 million and 14.5 million shares of common stock at an average price of $112.76 and $108.88 per share, respectively. On February 19, 2024 the Board of Directors amended the Discretionary Stock Repurchase Plan to further authorize share repurchases down to 130 million shares of common stock. This authorization has no expiration date. In addition, during 2023 and 2022, we paid cash dividends of $1.38 and $1.34 per share, respectively.
| Employee Full-time Equivalents as of December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| North America | 6,864 | 7,778 | ||
| Europe | 3,791 | 4,228 | ||
| North Asia | 2,260 | 2,448 | ||
| South Asia | 1,693 | 1,851 | ||
| Middle East, Africa and India | 1,428 | 1,540 | ||
| Latin America | 750 | 859 | ||
| Information Systems | 1,259 | 1,173 | ||
| Corporate | 407 | 425 | ||
| Total | 18,452 | 20,302 | ||
| Fourth quarter year-over-year <br>percentage (decrease) increase in: | ||||
| --- | --- | --- | ||
| Airfreight<br>kilos | Ocean freight<br>FEU | |||
| 2023 | ||||
| October | (6)% | (12)% | ||
| November | (6)% | (10)% | ||
| December | 3% | (7)% | ||
| Quarter | (3)% | (10)% |
Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on February 23, 2024 will be considered in management's 8-K “Responses to Selected Questions.”
___________________________________
NOTE: See Disclaimer on Forward-Looking Statements in this release.
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
| December 31, 2022 | |||||
|---|---|---|---|---|---|
| Assets: | |||||
| Current Assets: | |||||
| Cash and cash equivalents | 1,512,883 | $ | 2,034,131 | ||
| Accounts receivable, less allowance for credit loss of 6,550 and 9,466 at December 31, 2023 and 2022, respectively | 1,532,599 | 2,107,645 | |||
| Deferred contract costs | 218,807 | 257,545 | |||
| Other | 170,907 | 118,696 | |||
| Total current assets | 3,435,196 | 4,518,017 | |||
| Property and equipment, net | 479,225 | 501,916 | |||
| Operating lease right-of-use assets | 516,280 | 507,503 | |||
| Goodwill | 7,927 | 7,927 | |||
| Deferred federal and state income taxes, net | 63,690 | 37,449 | |||
| Other assets, net | 21,491 | 17,622 | |||
| Total assets | 4,523,809 | $ | 5,590,434 | ||
| Liabilities: | |||||
| Current Liabilities: | |||||
| Accounts payable | 860,856 | $ | 1,108,996 | ||
| Accrued expenses, primarily salaries and related costs | 447,336 | 479,262 | |||
| Contract liabilities | 280,909 | 323,101 | |||
| Current portion of operating lease liabilities | 99,749 | 95,621 | |||
| Federal, state and foreign income taxes | 15,562 | 47,075 | |||
| Total current liabilities | 1,704,412 | 2,054,055 | |||
| Noncurrent portion of operating lease liabilities | 427,984 | 422,844 | |||
| Commitments and contingencies | |||||
| Shareholders’ Equity: | |||||
| Preferred stock, none issued | — | — | |||
| Common stock, par value 0.01 per share. Issued and outstanding: 143,866 shares and 154,313 shares at December 31, 2023 and 2022, respectively | 1,439 | 1,543 | |||
| Additional paid-in capital | — | 139 | |||
| Retained earnings | 2,580,968 | 3,310,892 | |||
| Accumulated other comprehensive loss | (192,057 | ) | (202,553 | ) | |
| Total shareholders’ equity | 2,390,350 | 3,110,021 | |||
| Noncontrolling interest | 1,063 | 3,514 | |||
| Total equity | 2,391,413 | 3,113,535 | |||
| Total liabilities and equity | 4,523,809 | $ | 5,590,434 |
All values are in US Dollars.
| 20-February-2024 | Expeditors International of Washington, Inc. | Page 4 of 7 |
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EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(In thousands, except per share data)
(Unaudited)
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Revenues: | ||||||||||||
| Airfreight services | $ | 866,122 | $ | 1,204,810 | $ | 3,246,527 | $ | 5,886,886 | ||||
| Ocean freight and ocean services | 511,854 | 1,124,088 | 2,363,243 | 6,544,559 | ||||||||
| Customs brokerage and other services | 899,792 | 1,112,630 | 3,690,340 | 4,639,839 | ||||||||
| Total revenues | 2,277,768 | 3,441,528 | 9,300,110 | 17,071,284 | ||||||||
| Operating Expenses: | ||||||||||||
| Airfreight services | 639,725 | 899,865 | 2,347,293 | 4,359,726 | ||||||||
| Ocean freight and ocean services | 357,788 | 842,103 | 1,634,947 | 5,188,066 | ||||||||
| Customs brokerage and other services | 516,091 | 683,597 | 2,071,760 | 3,029,105 | ||||||||
| Salaries and related | 409,605 | 509,884 | 1,700,516 | 2,056,387 | ||||||||
| Rent and occupancy | 58,134 | 54,291 | 232,358 | 209,532 | ||||||||
| Depreciation and amortization | 21,386 | 14,922 | 67,760 | 57,338 | ||||||||
| Selling and promotion | 9,066 | 8,119 | 27,913 | 24,293 | ||||||||
| Other | 66,575 | 99,041 | 277,630 | 322,466 | ||||||||
| Total operating expenses | 2,078,370 | 3,111,822 | 8,360,177 | 15,246,913 | ||||||||
| Operating income | 199,398 | 329,706 | 939,933 | 1,824,371 | ||||||||
| Other Income (Expense): | ||||||||||||
| Interest income | 16,728 | 13,107 | 70,451 | 25,554 | ||||||||
| Interest expense | (159 | ) | (22,245 | ) | (4,800 | ) | (23,277 | ) | ||||
| Other, net | 409 | 480 | 9,444 | 9,243 | ||||||||
| Other income (expense), net | 16,978 | (8,658 | ) | 75,095 | 11,520 | |||||||
| Earnings before income taxes | 216,376 | 321,048 | 1,015,028 | 1,835,891 | ||||||||
| Income tax expense | 57,231 | 106,311 | 263,249 | 475,286 | ||||||||
| Net earnings | 159,145 | 214,737 | 751,779 | 1,360,605 | ||||||||
| Less net earnings (losses) attributable to the noncontrolling<br> interest | 426 | (4,539 | ) | (1,104 | ) | 3,206 | ||||||
| Net earnings attributable to shareholders | $ | 158,719 | $ | 219,276 | $ | 752,883 | $ | 1,357,399 | ||||
| Diluted earnings attributable to shareholders per share | $ | 1.09 | $ | 1.38 | $ | 5.01 | $ | 8.26 | ||||
| Basic earnings attributable to shareholders per share | $ | 1.09 | $ | 1.39 | $ | 5.05 | $ | 8.33 | ||||
| Weighted average diluted shares outstanding | 145,891 | 158,535 | 150,186 | 164,427 | ||||||||
| Weighted average basic shares outstanding | 144,979 | 157,269 | 149,141 | 163,010 | ||||||||
| 20-February-2024 | Expeditors International of Washington, Inc. | Page 5 of 7 | ||||||||||
| --- | --- | --- |
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Operating Activities: | ||||||||||||
| Net earnings | $ | 159,145 | $ | 214,737 | $ | 751,779 | $ | 1,360,605 | ||||
| Adjustments to reconcile net earnings to net cash from operating activities: | ||||||||||||
| Provisions for losses on accounts receivable | 1,627 | 1,133 | 3,943 | 11,050 | ||||||||
| Deferred income tax benefit | (14,974 | ) | (18,312 | ) | (22,916 | ) | (33,240 | ) | ||||
| Stock compensation expense | 11,437 | 13,101 | 58,399 | 64,397 | ||||||||
| Depreciation and amortization | 21,386 | 14,922 | 67,760 | 57,338 | ||||||||
| Other, net | 2,065 | 1,108 | 8,461 | 1,252 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| (Increase) decrease in accounts receivable | (55,481 | ) | 711,977 | 573,724 | 1,592,341 | |||||||
| Increase (decrease) in accounts payable and accrued expenses | 11,645 | (454,221 | ) | (300,345 | ) | (798,123 | ) | |||||
| Decrease in deferred contract costs | 8,082 | 277,805 | 36,952 | 714,960 | ||||||||
| Decrease in contract liabilities | (6,527 | ) | (309,530 | ) | (40,076 | ) | (798,356 | ) | ||||
| Increase (decrease) in income taxes payable, net | 20,445 | 23,439 | (77,298 | ) | (55,129 | ) | ||||||
| (Increase) decrease in other, net | (497 | ) | 10,540 | (7,192 | ) | 12,580 | ||||||
| Net cash from operating activities | 158,353 | 486,699 | 1,053,191 | 2,129,675 | ||||||||
| Investing Activities: | ||||||||||||
| Purchase of property and equipment | (10,714 | ) | (18,326 | ) | (39,314 | ) | (86,824 | ) | ||||
| Other, net | 90 | (245 | ) | (119 | ) | (890 | ) | |||||
| Net cash from investing activities | (10,624 | ) | (18,571 | ) | (39,433 | ) | (87,714 | ) | ||||
| Financing Activities: | ||||||||||||
| Payments on borrowing on lines of credit | (4,507 | ) | (688 | ) | (38,143 | ) | (30,289 | ) | ||||
| Proceeds from borrowing on lines of credit | 5,246 | 25,211 | 32,199 | 81,756 | ||||||||
| Proceeds from issuance of common stock | 4,584 | 7,662 | 84,889 | 80,980 | ||||||||
| Repurchases of common stock | (193,592 | ) | (563,802 | ) | (1,392,886 | ) | (1,581,908 | ) | ||||
| Dividends Paid | (99,766 | ) | (103,971 | ) | (202,029 | ) | (213,799 | ) | ||||
| Payments for taxes related to net share settlement of equity awards | (5 | ) | (2 | ) | (19,506 | ) | (19,335 | ) | ||||
| Distributions to noncontrolling interest | (1,089 | ) | (1,402 | ) | (1,089 | ) | (1,945 | ) | ||||
| Net cash from financing activities | (289,129 | ) | (636,992 | ) | (1,536,565 | ) | (1,684,540 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 14,855 | 48,461 | 1,559 | (51,982 | ) | |||||||
| Change in cash and cash equivalents | (126,545 | ) | (120,403 | ) | (521,248 | ) | 305,439 | |||||
| Cash and cash equivalents at beginning of period | 1,639,428 | 2,154,534 | 2,034,131 | 1,728,692 | ||||||||
| Cash and cash equivalents at end of period | $ | 1,512,883 | $ | 2,034,131 | $ | 1,512,883 | $ | 2,034,131 | ||||
| Taxes Paid: | ||||||||||||
| Income taxes | $ | 50,321 | $ | 100,822 | $ | 356,380 | $ | 566,533 | ||||
| 20-February-2024 | Expeditors International of Washington, Inc. | Page 6 of 7 | ||||||||||
| --- | --- | --- |
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Business Segment Information
(In thousands)
(Unaudited)
| UNITED<br>STATES | OTHER<br>NORTH<br>AMERICA | LATIN<br>AMERICA | NORTH<br>ASIA | SOUTH<br>ASIA | OPE | MIDDLE<br>EAST,<br>AFRICA<br>AND<br>INDIA | ELIMI-<br>NATIONS | CONSOLI-<br>DATED | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the three months ended December 31, 2023: | ||||||||||||||||||||||||
| Revenues | $ | 775,382 | 109,933 | 45,350 | 573,020 | 234,260 | 118,670 | (1,187 | ) | 2,277,768 | ||||||||||||||
| Directly related cost of transportation and other expenses1 | $ | 422,015 | 68,096 | 27,237 | 461,029 | 175,214 | 84,391 | (539 | ) | 1,513,604 | ||||||||||||||
| Salaries and other operating expenses2 | $ | 252,715 | 34,345 | 17,423 | 67,098 | 42,786 | 30,707 | (639 | ) | 564,766 | ||||||||||||||
| Operating income (loss) | $ | 100,652 | 7,492 | 690 | 44,893 | 16,260 | 3,572 | (9 | ) | 199,398 | ||||||||||||||
| Identifiable assets at period end | $ | 2,595,576 | 174,509 | 109,380 | 449,529 | 237,470 | 256,199 | (20,113 | ) | 4,523,809 | ||||||||||||||
| Capital expenditures | $ | 8,016 | 315 | 82 | 424 | 227 | 508 | — | 10,714 | |||||||||||||||
| Depreciation and amortization | $ | 15,401 | 475 | 281 | 1,106 | 460 | 787 | — | 21,386 | |||||||||||||||
| Equity | $ | 1,774,874 | 19,222 | 54,581 | 158,329 | 103,573 | 154,038 | (40,345 | ) | 2,391,413 | ||||||||||||||
| For the three months ended December 31, 2022: | ||||||||||||||||||||||||
| Revenues | $ | 1,118,262 | 127,442 | 65,821 | 969,266 | 367,679 | 194,342 | (1,231 | ) | 3,441,528 | ||||||||||||||
| Directly related cost of transportation and other expenses1 | $ | 639,804 | 80,052 | 41,480 | 799,583 | 288,014 | 144,377 | (580 | ) | 2,425,565 | ||||||||||||||
| Salaries and other operating expenses2 | $ | (18,767 | ) | 101,864 | 29,523 | 178,038 | 117,024 | 39,588 | (640 | ) | 686,257 | |||||||||||||
| Operating income3 | $ | 497,225 | (54,474 | ) | (5,182 | ) | (8,355 | ) | (37,359 | ) | ) | 10,377 | (11 | ) | 329,706 | |||||||||
| Identifiable assets at period end | $ | 3,070,697 | 209,516 | 123,003 | 675,022 | 316,777 | 283,872 | (27,113 | ) | 5,590,434 | ||||||||||||||
| Capital expenditures | $ | 11,262 | 282 | 232 | 1,098 | 391 | 536 | — | 18,326 | |||||||||||||||
| Depreciation and amortization | $ | 9,433 | 454 | 280 | 1,069 | 472 | 687 | — | 14,922 | |||||||||||||||
| Equity | $ | 2,246,417 | 31,132 | 56,416 | 274,703 | 136,944 | 145,269 | (40,624 | ) | 3,113,535 |
All values are in Euros.
| UNITED<br>STATES | OTHER<br>NORTH<br>AMERICA | LATIN<br>AMERICA | NORTH<br>ASIA | SOUTH<br>ASIA | OPE | MIDDLE<br>EAST,<br>AFRICA<br>AND<br>INDIA | ELIMI-<br>NATIONS | CONSOLI-<br>DATED | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the twelve months ended December 31, 2023: | ||||||||||||||||||
| Revenues | $ | 3,311,327 | 436,331 | 197,344 | 2,180,808 | 865,261 | 505,194 | (4,779 | ) | 9,300,110 | ||||||||
| Directly related cost of transportation and other expenses1 | $ | 1,809,526 | 270,080 | 117,376 | 1,700,025 | 612,606 | 345,873 | (2,239 | ) | 6,054,000 | ||||||||
| Salaries and other operating expenses2 | $ | 1,037,997 | 143,237 | 69,595 | 273,074 | 175,770 | 115,710 | (2,541 | ) | 2,306,177 | ||||||||
| Operating income | $ | 463,804 | 23,014 | 10,373 | 207,709 | 76,885 | 43,611 | 1 | 939,933 | |||||||||
| Identifiable assets at period end | $ | 2,595,576 | 174,509 | 109,380 | 449,529 | 237,470 | 256,199 | (20,113 | ) | 4,523,809 | ||||||||
| Capital expenditures | $ | 23,845 | 1,247 | 442 | 1,534 | 971 | 3,445 | — | 39,314 | |||||||||
| Depreciation and amortization | $ | 44,039 | 1,879 | 1,123 | 4,597 | 1,940 | 2,869 | — | 67,760 | |||||||||
| Equity | $ | 1,774,874 | 19,222 | 54,581 | 158,329 | 103,573 | 154,038 | (40,345 | ) | 2,391,413 | ||||||||
| For the twelve months ended December 31, 2022: | ||||||||||||||||||
| Revenues | $ | 4,869,364 | 517,662 | 257,721 | 5,810,088 | 2,144,034 | 1,005,489 | (4,530 | ) | 17,071,284 | ||||||||
| Directly related cost of transportation and other expenses1 | $ | 2,943,232 | 310,206 | 160,273 | 4,853,902 | 1,751,187 | 791,887 | (1,892 | ) | 12,576,897 | ||||||||
| Salaries and other operating expenses2 | $ | 944,050 | 188,192 | 72,177 | 504,805 | 238,658 | 151,069 | (2,533 | ) | 2,670,016 | ||||||||
| Operating income | $ | 982,082 | 19,264 | 25,271 | 451,381 | 154,189 | 62,533 | (105 | ) | 1,824,371 | ||||||||
| Identifiable assets at period end | $ | 3,070,697 | 209,516 | 123,003 | 675,022 | 316,777 | 283,872 | (27,113 | ) | 5,590,434 | ||||||||
| Capital expenditures | $ | 56,411 | 2,954 | 937 | 2,976 | 1,543 | 4,135 | — | 86,824 | |||||||||
| Depreciation and amortization | $ | 35,461 | 1,892 | 1,123 | 4,682 | 1,966 | 2,574 | — | 57,338 | |||||||||
| Equity | $ | 2,246,417 | 31,132 | 56,416 | 274,703 | 136,944 | 145,269 | (40,624 | ) | 3,113,535 |
All values are in Euros.
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.
3 In 2022, certain intercompany fees were billed to our subsidiaries in the 4th quarter covering the entirety of 2022. This resulted in fourth quarter operating losses or reduced operating income for some of our business segments when compared to the current year where these amounts were billed monthly.
| 20-February-2024 | Expeditors International of Washington, Inc. | Page 7 of 7 |
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