EXPEDITORS INTERNATIONAL OF WASHINGTON INC - 10-Q Quarterly Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2002

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 0-13468

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

(Exact name of registrant as specified in its charter)

Washington	91-1069248
(State or other jurisdiction of	(IRS Employer Identification Number)
incorporation or organization)

1015 Third Avenue, 12^th Floor, Seattle, Washington	98104
(Address of principal executive offices)	(Zip Code)

(206) 674-3400

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

At August 7, 2002, the number of shares outstanding of the issuer’s Common Stock was 103,975,113.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES

Condensed Consolidated Balance Sheets
(In thousands, except share data)

(Unaudited)

	June 30, 2002			December 31, 2001

Assets

Current assets:
Cash and cash equivalents	$	273,226		$	218,677
Short-term investments	53			57
Accounts receivable, less allowance for doubtful accounts of $10,466 at June 30, 2002 and $10,410 at December 31, 2001	336,733			283,414
Other current assets	13,956			9,109

Total current assets	623,968			511,257

Property and equipment, less accumulated depreciation and amortization of $109,107 at June 30, 2002 and $100,611 at December 31, 2001	122,960			123,845
Deferred Federal and state income taxes	10,921			12,156
Other assets, net	43,833			41,179

	$	801,682		$	688,437

Liabilities and Shareholders’ Equity

Current liabilities:
Short-term debt	286			1,706
Accounts payable	248,645			195,826
Accrued expenses, primarily salaries and related costs	67,713			59,843
Deferred Federal and state income taxes	12,694			7,651
Federal, state and foreign income taxes	9,778			8,788

Total current liabilities	339,116			273,814

Shareholders’ equity:
Preferred stock, par value $.01 per share.
Authorized 2,000,000 shares; none issued	—			—

Common stock, par value $.01 per share.
Authorized 320,000,000 shares; issued and outstanding 103,971,796 shares at June 30, 2002, and 103,223,708 shares at December 31, 2001	1,040			1,032
Additional paid-in capital	20,846			15,588
Retained earnings	451,670			411,992
Accumulated other comprehensive loss	(10,990		)	(13,989		)

Total shareholders’ equity	462,566			414,623

	$	801,682		$	688,437

See accompanying notes to condensed consolidated financial statements.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings
(In thousands, except share data)

(Unaudited)

	Three months ended June 30,				Six months ended June 30,
	2002		2001		2002		2001

Revenues:
Airfreight	$	279,024	$	224,113	$	504,605	$	469,273
Ocean freight and ocean services	170,090		143,175		315,478		276,772
Customs brokerage and import services	86,642		78,225		165,213		157,088

Total revenues	535,756		445,513		985,296		903,133

Operating expenses:
Airfreight consolidation	216,653		161,744		383,207		345,051
Ocean freight consolidation	132,210		110,391		241,939		213,541
Customs brokerage and import services	30,749		25,611		57,300		51,088
Salaries and related costs	83,698		79,961		164,527		159,492
Rent and occupancy costs	10,175		8,755		19,900		17,715
Depreciation and amortization	5,751		5,965		11,412		11,913
Selling and promotion	4,858		5,527		9,296		10,878
Other	15,577		15,346		28,984		30,242

Total operating expenses	499,671		413,300		916,565		839,920