UNITED
STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended June 30, 2003 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to |
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Commission File Number: 0-13468 |
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EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
(Exact name of registrant as specified in its charter)
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Washington |
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91-1069248 |
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(State or other
jurisdiction of |
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(IRS Employer Identification Number) |
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1015 Third Avenue, 12th Floor, Seattle, Washington |
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98104 |
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(Address of principal executive offices) |
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(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
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes ý No o
At August 4, 2003, the number of shares outstanding of the issuer’s Common Stock was 104,667,753.
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)
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June 30, |
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December
31, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
284,415 |
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$ |
211,859 |
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Short-term investments |
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78 |
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87 |
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Accounts receivable, less allowance for doubtful accounts of $11,840 at June 30, 2003 and $12,135 at December 31, 2002 |
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384,332 |
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385,864 |
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Other current assets |
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18,851 |
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7,676 |
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Total current assets |
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687,676 |
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605,486 |
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Property
and equipment, less accumulated depreciation and amortization of $126,242 at |
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236,363 |
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204,966 |
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Goodwill, less accumulated amortization of $765 at June 30, 2003 and December 31, 2002 |
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5,725 |
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5,299 |
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Deferred Federal and state income taxes |
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8,257 |
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11,008 |
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Other assets, net |
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20,987 |
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53,189 |
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$ |
959,008 |
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$ |
879,948 |
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Liabilities and Shareholders’ Equity |
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Current liabilities: |
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Short-term debt |
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496 |
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1,319 |
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Accounts payable |
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268,754 |
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248,302 |
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Accrued expenses, primarily salaries and related costs |
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88,449 |
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79,847 |
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Deferred Federal and state income taxes |
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13,278 |
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9,678 |
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Federal, state and foreign income taxes |
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10,930 |
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16,990 |
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Total current liabilities |
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381,907 |
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356,136 |
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Shareholders’ equity: |
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Preferred stock, par value $.01 per share |
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Authorized 2,000,000 shares; none issued |
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— |
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— |
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Common stock, par value $.01 per share |
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Authorized 320,000,000 shares; issued and outstanding 104,627,237 shares at June 30, 2003, and 104,220,940 shares at December 31, 2002 |
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1,046 |
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1,042 |
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Additional paid-in capital |
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24,573 |
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21,701 |
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Retained earnings |
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556,697 |
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512,036 |
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Accumulated other comprehensive loss |
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(5,215 |
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(10,967 |
) |
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Total shareholders’ equity |
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577,101 |
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523,812 |
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$ |
959,008 |
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$ |
879,948 |
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See accompanying notes to condensed consolidated financial statements.
2
EXPEDITORS
INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed
Consolidated Statements of Earnings
(In thousands, except share data)
(Unaudited)
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Three
months ended |
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Six months
ended |
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2003 |
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2002 |
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2003 |
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2002 |
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Revenues: |
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Airfreight |
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$ |
287,514 |
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$ |
279,024 |
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$ |
554,328 |
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$ |
504,605 |
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Ocean freight and ocean services |
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231,979 |
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170,090 |
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422,324 |
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315,478 |
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Customs brokerage and import services |
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106,220 |
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86,642 |
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205,407 |
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165,213 |
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Total revenues |
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625,713 |
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535,756 |
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1,182,059 |
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985,296 |
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Operating expenses: |
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Airfreight consolidation |
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219,738 |
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216,653 |
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421,078 |
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383,207 |
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Ocean freight consolidation |
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186,648 |
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132,210 |
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334,501 |
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241,939 |
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Customs brokerage and import services |
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41,066 |
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30,749 |
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78,193 |
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57,300 |
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Salaries and related costs |
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98,014 |
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83,698 |
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191,554 |
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164,527 |
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Rent and occupancy costs |
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11,462 |
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10,175 |
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22,457 |
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19,900 |
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Depreciation and amortization |
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5,923 |
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5,751 |
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11,702 |
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11,412 |
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Selling and promotion |
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5,332 |
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4,858 |
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10,639 |
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9,296 |
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Other |
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16,225 |
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15,577 |
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33,101 |
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28,984 |
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Total operating expenses |
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584,408 |
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499,671 |
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