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| 8-K - 8-K - EXPEDITORS INTERNATIONAL OF WASHINGTON INC | a20124qer8-k.htm |
Exhibit 99.1
EARNINGS RELEASE
By: Expeditors International of Washington, Inc.
1015 Third Avenue, Suite 1200
Seattle, Washington 98104
CONTACTS: | R. Jordan Gates Bradley S. Powell |
President and Chief Operating Officer Senior Vice President and Chief Financial Officer
(206) 674-3427 (206) 674-3412
FOR IMMEDIATE RELEASE | ||||
EXPEDITORS REPORTS FOURTH QUARTER 2012 EPS OF $.40 PER SHARE 1
SEATTLE, WASHINGTON - February 26, 2013, Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced net earnings attributable to shareholders of $84,208,000 for the fourth quarter of 2012, as compared with $92,843,000 for the same quarter of 2011, a decrease of (9)%. Net revenues for the fourth quarter of 2012 decreased (4)% to $458,738,000 as compared with $476,155,000 reported for the fourth quarter of 2011. Total revenues and operating income were $1,532,957,000 and $128,025,000 in 2012, as compared with $1,501,914,000 and $155,064,000 for the same quarter of 2011, an increase of 2% and a decrease of (17)%, respectively. Diluted net earnings attributable to shareholders per share for the fourth quarter were $.40, as compared with $.43 for the same quarter in 2011, a decrease of (7)%.
For the year ended December 31, 2012, net earnings attributable to shareholders was $333,360,000, as compared with $385,679,000 in 2011, a decrease of (14)%. Net revenues for the year decreased to $1,824,098,000 from $1,896,477,000 for 2011, down (4)%. Total revenues and operating income for the year were $5,980,943,000 and $530,798,000 in 2012, as compared with $6,150,498,000 and $618,327,000 for the same period in 2011, decreases of (3)% and (14)%, respectively. Diluted net earnings attributable to shareholders per share for the year ended December 31, 2012 were $1.57, as compared with $1.79 for the same period of 2011, a decrease of (12)%.
“We obviously would have liked better results for the annual 2012 and fourth quarter, not withstanding 2012 was our third most profitable year on record," said Peter J. Rose, Chairman and Chief Executive Officer. "The market has been challenged throughout the year by air carriers reducing capacity to optimize their pricing and load factors as market volumes declined, primarily in the hi-tech and computer industry, traditionally among the prime users of airfreight space. As airfreight tonnage spiked during the latter part of the fourth quarter, carriers imposed rate increases so quickly that we were unable to commercially adjust our corresponding sell rates to avoid temporary yield declines. That all said, we still have much to be proud of this year. We remain highly efficient and profitable with strong cash flow and an operating margin just under 30%2. We have a balance sheet as solid as the Rock of Gibraltar, abundant cash and the wherewithal to make strategic investments to increase growth and continue technological enhancements. And finally, we successfully concluded our part of the five year DOJ investigation into our industry. As we reflect back on the goals and aspirations we held at the start of 2012, we executed to protect the long-term value of Expeditors, particularly given global economic uncertainties. We made the safe-guarding of our people a priority; we continued to make essential investments in systems and new services, such as Transcon, our time definite transportation service; and we continued to provide consistently high-quality service to our customers. We also made record stock buybacks of $302 million and paid out record dividends of $117 million," Rose continued.
"Early in 2012, while eschewing layoffs, we asked our managers to focus on being more efficient with current staff, to be cautious with hiring decisions and to only add headcount in instances where attrition or new business required it, so as to not compromise our customer service standards. We concentrated our efforts on managing and developing the investments in our most valuable assets, our people. Our final 2012 headcount is only 0.2% above 2011 levels, but even that slight increase reflects targeted investments in new offices, strategic business initiatives and information systems which will allow us to drive future productivity and on-board new customers more efficiently. As we move into 2013, we have taken several steps to enhance our ability to retain existing customers while attracting new business. We have refined our pricing regimen to ensure that we are focusing on market share expansion through more timely and efficient rate quotation; we are in the process of rolling out our internally-developed customer relationship management system; we have increased our emphasis on our customer-facing network engineering offerings which have been very successful in assisting customer supply-chain optimization initiatives; and, of course, we will continue to train, measure and emphasize our foundational commitment to customer service. We think those are winning combinations to help our people manage whatever 2013 will bring," Rose concluded.
Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 188 full-service offices and numerous satellite 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, domestic time definite transportation services, purchase order management and customized logistics solutions.
________________________
1 Diluted earnings attributable to shareholders per share.
2 Operating margin is calculated as operating income divided by net revenues.
NOTE: See Disclaimer on Forward-Looking Statements on the following page of this release.
Expeditors International of Washington, Inc.
4th Quarter 2012 Earnings Release, February 26, 2013
Financial Highlights for the Three months and Years ended December 31, 2012 and 2011 (Unaudited)
(in 000's of US dollars except share data)
Three months ended December 31, | Years ended December 31, | ||||||||||||||||||
2012 | 2011 | % Increase (Decrease) | 2012 | 2011 | % Decrease | ||||||||||||||
Revenues | $ | 1,532,957 | $ | 1,501,914 | 2% | $ | 5,980,943 | $ | 6,150,498 | (3)% | |||||||||
Net revenues | $ | 458,738 | $ | 476,155 | (4)% | $ | 1,824,098 | $ | 1,896,477 | (4)% | |||||||||
Operating income | $ | 128,025 | $ | 155,064 | (17)% | $ | 530,798 | $ | 618,327 | (14)% | |||||||||
Net earnings attributable to shareholders | $ | 84,208 | $ | 92,843 | (9)% | $ | 333,360 | $ | 385,679 | (14)% | |||||||||
Diluted earnings attributable to shareholders | $ | .40 | $ | .43 | (7)% | $ | 1.57 | $ | 1.79 | (12)% | |||||||||
Basic earnings attributable to shareholders | $ | .41 | $ | .44 | (7)% | $ | 1.58 | $ | 1.82 | (13)% | |||||||||
Diluted weighted average shares outstanding | 208,963,216 | 214,159,723 | 211,935,171 | 215,033,580 | |||||||||||||||
Basic weighted average shares outstanding | 207,766,619 | 211,988,482 | 210,422,945 | 212,117,511 | |||||||||||||||
Employee headcount as of December 31, | |||||
2012 | 2011 | ||||
North America | 4,726 | 4,666 | |||
Asia Pacific | 3,914 | 4,083 | |||
Europe and Africa | 2,332 | 2,262 | |||
Middle East | 1,236 | 1,250 | |||
South America | 672 | 645 | |||
Information Systems | 600 | 569 | |||
Corporate | 248 | 228 | |||
Total | 13,728 | 13,703 | |||
Year-over-year percentage increase (decrease) in: | ||||||
Airfreight kilos | Ocean freight FEU | |||||
2012 | ||||||
October | 3 | % | (9 | )% | ||
November | 8 | % | (4 | )% | ||
December | 2 | % | (4 | )% | ||
Quarter | 5 | % | (6 | )% | ||
Disclaimer on Forward-Looking Statements:
Certain portions of this release contain forward-looking statements which are based on certain assumptions and expectations of future events that are subject to risks and uncertainties, including comments on global economic uncertainties; challenges in the airfreight industry and reducing capacity to optimize their pricing and loan factors; ability to maintain or improve profitability, cash flow, operating margins and efficiencies; ability to make strategic investments that increase growth and enhance our technology, systems and new services; ability to safeguard, manage and develop our people; ability to maintain and improve high quality services to customers; ability to continue stock buy-backs and dividends; ability to retain existing customers or attract new business; ability to operate new offices profitably; ability to drive future productivity, or on-board new customers; ability to refine our pricing regimen to ensure we are focusing on market-share expansion or timing and efficient rate quotation; success of internally developed systems; success of network engineering offerings; and success in optimizing customer supply chain initiatives. Actual future results and trends may differ materially from historical results or those projected in any forward-looking statements depending on a variety of factors including, but not limited to, our ability to maintain consistent and stable operating results, future success of our business model, ability to perpetuate profits, changes in customer demand for Expeditors’ services caused by a general economic slow-down, customers’ inventory build-up, decreased consumer confidence, volatility in equity markets, energy prices, political changes, regulatory actions or changes or the unpredictable acts of competitors and other risks, risk factors and uncertainties detailed in our Annual Report as updated by our reports on Form 10-Q, filed with the Securities and Exchange Commission.
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
December 31, 2012 | December 31, 2011 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 1,260,842 | $ | 1,294,356 | |||
Accounts receivable, net | 1,031,376 | 934,752 | |||||
Deferred Federal and state income taxes | 12,102 | 10,415 | |||||
Other current assets | 53,279 | 47,360 | |||||
Total current assets | 2,357,599 | 2,286,883 | |||||
Property and equipment, net | 556,204 | 538,806 | |||||
Goodwill | 7,927 | 7,927 | |||||
Other assets, net | 32,395 | 33,211 | |||||
$ | 2,954,125 | $ | 2,866,827 | ||||
Liabilities and Equity | |||||||
Current Liabilities: | |||||||
Accounts payable | 641,593 | 606,628 | |||||
Accrued expenses, primarily salaries and related costs | 178,995 | 169,445 | |||||
Federal, state and foreign income taxes | 21,970 | 20,072 | |||||
Total current liabilities | 842,558 | 796,145 | |||||
Deferred Federal and state income taxes | 78,997 | 60,613 | |||||
Commitments and contingencies | |||||||
Shareholders’ Equity: | |||||||
Preferred stock; none issued | — | — | |||||
Common stock, par value $.01 per share; issued and outstanding 206,392,013 shares at December 31, 2012 and 212,003,662 shares at December 31, 2011 | 2,064 | 2,120 | |||||
Additional paid-in capital | 1,283 | 13,260 | |||||
Retained earnings | 2,018,618 | 1,991,222 | |||||
Accumulated other comprehensive income (loss) | 5,734 | (2,964 | ) | ||||
Total shareholders’ equity | 2,027,699 | 2,003,638 | |||||
Noncontrolling interest | 4,871 | 6,431 | |||||
Total equity | 2,032,570 | 2,010,069 | |||||
$ | 2,954,125 | $ | 2,866,827 | ||||
February 26, 2013 | Expeditors International of Washington, Inc. | Page 3 of 6 |
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(In thousands, except share data)
(Unaudited)
Three months ended | Twelve months ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenues: | |||||||||||||||
Airfreight services | $ | 700,785 | $ | 705,744 | $ | 2,600,916 | $ | 2,893,474 | |||||||
Ocean freight and ocean services | 472,307 | 441,102 | 1,974,891 | 1,878,595 | |||||||||||
Customs brokerage and other services | 359,865 | 355,068 | 1,405,136 | 1,378,429 | |||||||||||
Total revenues | 1,532,957 | 1,501,914 | 5,980,943 | 6,150,498 | |||||||||||
Operating Expenses: | |||||||||||||||
Airfreight consolidation | 546,395 | 534,159 | 1,983,696 | 2,193,122 | |||||||||||
Ocean freight consolidation | 364,251 | 333,567 | 1,542,170 | 1,443,170 | |||||||||||
Customs brokerage and other services | 163,573 | 158,033 | 630,979 | 617,729 | |||||||||||
Salaries and related costs | 246,096 | 247,917 | 995,052 | 993,358 | |||||||||||
Rent and occupancy costs | 24,711 | 20,578 | 88,044 | 84,665 | |||||||||||
Depreciation and amortization | 10,695 | 9,146 | 39,940 | 36,776 | |||||||||||
Selling and promotion | 8,814 | 10,447 | 34,184 | 38,974 | |||||||||||
Other | 40,397 | 33,003 | 136,080 | 124,377 | |||||||||||
Total operating expenses | 1,404,932 | 1,346,850 | 5,450,145 | 5,532,171 | |||||||||||
Operating income | 128,025 | 155,064 | 530,798 | 618,327 | |||||||||||
Interest income | 3,522 | 2,715 | 12,763 | 10,235 | |||||||||||
Interest expense | (227 | ) | (248 | ) | (1,251 | ) | (970 | ) | |||||||
Other, net | 2,072 | (2,330 | ) | 8,083 | 10,436 | ||||||||||
Other income, net | 5,367 | 137 | 19,595 | 19,701 | |||||||||||
Earnings before income taxes | 133,392 | 155,201 | 550,393 | 638,028 | |||||||||||
Income tax expense | 49,893 | 62,061 | 217,424 | 251,785 | |||||||||||
Net earnings | 83,499 | 93,140 | 332,969 | 386,243 | |||||||||||
Less net (losses) earnings attributable to the noncontrolling interest | (709 | ) | 297 | (391 | ) | 564 | |||||||||
Net earnings attributable to shareholders | $ | 84,208 | $ | 92,843 | $ | 333,360 | $ | 385,679 | |||||||
Diluted earnings attributable to shareholders per share | $ | .40 | $ | .43 | $ | 1.57 | $ | 1.79 | |||||||
Basic earnings attributable to shareholders per share | $ | .41 | $ | .44 | $ | 1.58 | $ | 1.82 | |||||||
Dividends declared and paid per common share | $ | .28 | $ | .25 | $ | .56 | $ | .50 | |||||||
Weighted average diluted shares outstanding | 208,963,216 | 214,159,723 | 211,935,171 | 215,033,580 | |||||||||||
Weighted average basic shares outstanding | 207,766,619 | 211,988,482 | 210,422,945 | 212,117,511 | |||||||||||
February 26, 2013 | Expeditors International of Washington, Inc. | Page 4 of 6 |
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands) (Unaudited)
Three months ended | Twelve months ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Operating Activities: | |||||||||||||||
Net earnings | $ | 83,499 | $ | 93,140 | $ | 332,969 | $ | 386,243 | |||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||||
Provision for losses (recoveries) on accounts receivable | 302 | 166 | (90 | ) | 1,327 | ||||||||||
Deferred income tax expense (benefit) | 7,309 | 5,598 | 11,639 | (4,065 | ) | ||||||||||
Excess tax benefits from stock plans | (1,110 | ) | (232 | ) | (5,401 | ) | (5,300 | ) | |||||||
Stock compensation expense | 11,212 | 10,832 | 44,058 | 44,278 | |||||||||||
Depreciation and amortization | 10,695 | 9,146 | 39,940 | 36,776 | |||||||||||
Other | 3,181 | 722 | 4,864 | 2,496 | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
(Increase) decrease in accounts receivable | (16,044 | ) | 58,717 | (89,856 | ) | 46,915 | |||||||||
Decrease (increase) in other current assets | 3,566 | (1,620 | ) | (63 | ) | (7,483 | ) | ||||||||
(Decrease) increase in accounts payable and accrued expenses | (30,341 | ) | (54,879 | ) | 30,625 | (40,819 | ) | ||||||||
(Decrease) increase in income taxes payable, net | (11,520 | ) | (13,654 | ) | 1,441 | (3,237 | ) | ||||||||
Net cash from operating activities | 60,749 | 107,936 | 370,126 | 457,131 | |||||||||||
Investing Activities: | |||||||||||||||
Purchase of property and equipment | (10,554 | ) | (19,261 | ) | (47,626 | ) | (78,115 | ) | |||||||
Prepayment on long-term leases, net | — | — | — | (936 | ) | ||||||||||
Other | 146 | 343 | 632 | (1,288 | ) | ||||||||||
Net cash from investing activities | (10,408 | ) | (18,918 | ) | (46,994 | ) | (80,339 | ) | |||||||
Financing Activities: | |||||||||||||||
Proceeds from issuance of common stock | 7,510 | 2,055 | 52,511 | 56,646 | |||||||||||
Repurchases of common stock | (108,921 | ) | (3,499 | ) | (302,414 | ) | (112,071 | ) | |||||||
Excess tax benefits from stock plans | 1,110 | 232 | 5,401 | 5,300 | |||||||||||
Dividends paid | (57,905 | ) | (52,997 | ) | (117,263 | ) | (106,011 | ) | |||||||
Distribution to noncontrolling interest | (105 | ) | (133 | ) | (1,282 | ) | (955 | ) | |||||||
Net cash from financing activities | (158,311 | ) | (54,342 | ) | (363,047 | ) | (157,091 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | 1,170 | (1,134 | ) | 6,401 | (9,810 | ) | |||||||||
(Decrease) increase in cash and cash equivalents | (106,800 | ) | 33,542 | (33,514 | ) | 209,891 | |||||||||
Cash and cash equivalents at beginning of period | 1,367,642 | 1,260,814 | 1,294,356 | 1,084,465 | |||||||||||
Cash and cash equivalents at end of period | $ | 1,260,842 | $ | 1,294,356 | $ | 1,260,842 | $ | 1,294,356 | |||||||
Interest and taxes paid: | |||||||||||||||
Interest | $ | 68 | $ | 231 | $ | 515 | $ | 296 | |||||||
Income taxes | 52,168 | 83,454 | 207,174 | 266,621 | |||||||||||
February 26, 2013 | Expeditors International of Washington, Inc. | Page 5 of 6 |
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Business Segment Information
(In thousands) (Unaudited)
UNITED STATES | OTHER NORTH AMERICA | LATIN AMERICA | ASIA PACIFIC | EUROPE and AFRICA | MIDDLE EAST and INDIA | ELIMI- NATIONS | CONSOLI- DATED | |||||||||||||||||
Three months ended December 31, 2012: | ||||||||||||||||||||||||
Revenues from unaffiliated customers | $ | 379,018 | 51,557 | 20,887 | 800,804 | 210,231 | 70,460 | — | 1,532,957 | |||||||||||||||
Transfers between geographic areas | 25,386 | 2,868 | 4,770 | 11,035 | 10,097 | 4,300 | (58,456 | ) | — | |||||||||||||||
Total revenues | $ | 404,404 | 54,425 | 25,657 | 811,839 | 220,328 | 74,760 | (58,456 | ) | 1,532,957 | ||||||||||||||
Net revenues | $ | 186,176 | 25,029 | 14,258 | 136,497 | 73,393 | 23,385 | — | 458,738 | |||||||||||||||
Operating income | $ | 28,201 | 11,045 | 4,237 | 57,933 | 18,804 | 7,805 | — | 128,025 | |||||||||||||||
Identifiable assets | $ | 1,459,425 | 92,075 | 48,995 | 776,902 | 428,053 | 147,871 | 804 | 2,954,125 | |||||||||||||||
Capital expenditures | $ | 7,412 | 281 | 241 | 1,452 | 794 | 374 | — | 10,554 | |||||||||||||||
Depreciation and amortization | $ | 6,358 | 200 | 229 | 1,850 | 1,605 | 453 | — | 10,695 | |||||||||||||||
Equity | $ | 1,197,239 | 58,071 | 29,504 | 538,710 | 167,752 | 74,950 | (33,656 | ) | 2,032,570 | ||||||||||||||
Three months ended December 31, 2011: | ||||||||||||||||||||||||
Revenues from unaffiliated customers | $ | 383,830 | 48,839 | 19,490 | 761,092 | 218,074 | 70,589 | — | 1,501,914 | |||||||||||||||
Transfers between geographic areas | 24,639 | 2,641 | 5,356 | 10,159 | 10,570 | 4,592 | (57,957 | ) | — | |||||||||||||||
Total revenues | $ | 408,469 | 51,480 | 24,846 | 771,251 | 228,644 | 75,181 | (57,957 | ) | 1,501,914 | ||||||||||||||
Net revenues | $ | 183,381 | 24,367 | 14,673 | 150,262 | 76,950 | 26,522 | — | 476,155 | |||||||||||||||
Operating income | $ | 41,652 | 10,314 | 5,056 | 68,971 | 19,048 | 10,023 | — | 155,064 | |||||||||||||||
Identifiable assets | $ | 1,521,657 | 86,020 | 48,221 | 667,171 | 401,518 | 141,379 | 861 | 2,866,827 | |||||||||||||||
Capital expenditures | $ | 8,404 | 199 | 166 | 8,760 | 1,288 | 444 | — | 19,261 | |||||||||||||||
Depreciation and amortization | $ | 5,222 | 208 | 226 | 1,605 | 1,400 | 485 | — | 9,146 | |||||||||||||||
Equity | $ | 1,285,812 | 49,571 | 27,346 | 448,613 | 145,998 | 85,605 | (32,876 | ) | 2,010,069 | ||||||||||||||
Twelve months ended December 31, 2012: | ||||||||||||||||||||||||
Revenues from unaffiliated customers | $ | 1,519,276 | 201,521 | 82,337 | 3,074,587 | 816,927 | 286,295 | — | 5,980,943 | |||||||||||||||
Transfers between geographic areas | 94,521 | 10,476 | 18,780 | 43,721 | 38,791 | 18,128 | (224,417 | ) | — | |||||||||||||||
Total revenues | $ | 1,613,797 | 211,997 | 101,117 | 3,118,308 | 855,718 | 304,423 | (224,417 | ) | 5,980,943 | ||||||||||||||
Net revenues | $ | 737,679 | 95,798 | 57,795 | 551,211 | 286,264 | 95,351 | — | 1,824,098 | |||||||||||||||
Operating income | $ | 179,015 | 32,385 | 17,356 | 216,559 | 59,314 | 26,169 | — | 530,798 | |||||||||||||||
Identifiable assets | $ | 1,459,425 | 92,075 | 48,995 | 776,902 | 428,053 | 147,871 | 804 | 2,954,125 | |||||||||||||||
Capital expenditures | $ | 28,088 | 832 | 1,301 | 11,275 | 4,323 | 1,807 | — | 47,626 | |||||||||||||||
Depreciation and amortization | $ | 23,678 | 756 | 873 | 6,810 | 5,994 | 1,829 | — | 39,940 | |||||||||||||||
Equity | $ | 1,197,239 | 58,071 | 29,504 | 538,710 | 167,752 | 74,950 | (33,656 | ) | 2,032,570 | ||||||||||||||
Twelve months ended December 31, 2011: | ||||||||||||||||||||||||
Revenues from unaffiliated customers | $ | 1,540,477 | 189,843 | 82,312 | 3,144,641 | 891,185 | 302,040 | — | 6,150,498 | |||||||||||||||
Transfers between geographic areas | 101,738 | 11,095 | 21,222 | 40,012 | 43,359 | 17,897 | (235,323 | ) | — | |||||||||||||||
Total revenues | $ | 1,642,215 | 200,938 | 103,534 | 3,184,653 | 934,544 | 319,937 | (235,323 | ) | 6,150,498 | ||||||||||||||
Net revenues | $ | 732,299 | 90,432 | 59,968 | 605,151 | 307,471 | 101,156 | — | 1,896,477 | |||||||||||||||
Operating income | $ | 210,702 | 29,209 | 19,151 | 258,952 | 72,248 | 28,065 | — | 618,327 | |||||||||||||||
Identifiable assets | $ | 1,521,657 | 86,020 | 48,221 | 667,171 | 401,518 | 141,379 | 861 | 2,866,827 | |||||||||||||||
Capital expenditures | $ | 23,219 | 1,122 | 628 | 25,295 | 25,856 | 1,995 | — | 78,115 | |||||||||||||||
Depreciation and amortization | $ | 20,037 | 1,038 | 999 | 7,243 | 5,414 | 2,045 | — | 36,776 | |||||||||||||||
Equity | $ | 1,285,812 | 49,571 | 27,346 | 448,613 | 145,998 | 85,605 | (32,876 | ) | 2,010,069 | ||||||||||||||
February 26, 2013 | Expeditors International of Washington, Inc. | Page 6 of 6 |