Expeditors International of Washington, Inc.

“As a third-party logistics provider, we purchase cargo space from carriers (such as airlines, ocean shipping lines, and trucking lines) on a volume basis and resell that space to our customers. We do not compete for overnight courier or small parcel business and do not own aircraft or ships.”

“Operating income is the primary measure of business segments' profit or loss that is most consistent with the measurement principles of U.S. GAAP and no items below operating income are allocated to segments.”

“As a customs broker, we make significant short-term cash advances for a select group of our credit-worthy customers. Higher duty rates have resulted in increases in the amounts we advance on behalf of our customers.”

“Because fuel is an integral part of carriers' costs and impacts both our buy rates and sell rates, we would expect our revenues and costs to be impacted as carriers adjust rates for the effect of changing fuel prices.”

“cash and cash equivalent balances of $515 million were held by our non-United States subsidiaries, of which $5 million was held in banks in the United States.”

“Net foreign currency transactional losses in 2025 were $28,233, net foreign currency transactional gains in 2024 were $11,556, and net foreign currency transactional losses in 2023 were $14,943.”

“Our worldwide operations require that we transact in a multitude of currencies other than the U.S. dollar.”

“our ability to provide services to our customers is highly dependent on good working relationships with a variety of entities, including airlines, ocean carrier lines, ground transportation providers and governmental agencies.”

“Property and equipment, net $ 462,122”

“Total anticipated capital expenditures in 2026 are currently estimated to be approximately $100 million. This includes investments in technology infrastructure, leasehold and building improvements and routine capital expenditures.”

“To the extent that future fuel prices increase, and we are unable to pass through the increase to our customers, fuel price increases could adversely affect our operating income.”

“our business continues to experience rising labor costs, service provider rate increases, higher rent and occupancy and other expenses.”

“Other than our recorded lease liabilities, we had no long-term obligations or debt at December 31, 2025.”

“Total cash and cash equivalents $ 1,314,285”

“Our corporate headquarters and certain other critical business operations are in the Puget Sound area of Washington, which is near major earthquake faults.”

“Management believes that our current cash position and operating cash flows will be sufficient to meet our capital and liquidity requirements for at least the next 12 months”

“The Company prospectively adopted the FASB's ASU No. 2023-09 Income Taxes (Topic 740) Improvements to Income Tax Disclosures (ASU 2023-09), for the 2025 annual period beginning January 1, 2025”

“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).”

“Accumulated other comprehensive loss consisted entirely of foreign currency translation adjustments, net of related income tax effects, as of December 31, 2025 and 2024.”

“Expeditors is licensed as an Ocean Transportation Intermediary (OTI) (sometimes referred to as an NVOCC) by the Federal Maritime Commission (FMC).”

“The Company follows a policy of accelerating international currency settlements to manage its foreign exchange exposure. Historically, derivative financial instruments have not been used to manage foreign currency risk.”

“we generated 19% and 22% of our revenues and 15% and 17% of our operating income in 2025 and 2024, respectively, on exports from China and Hong Kong.”

“The primary competitive factors are price and quality of service.”

“we may be compelled to shut down systems to protect the environment, as we did during a cyber-attack in February 2022, leading to lost revenue”

“We cannot predict what further impact ongoing uncertainties in the global economy, inflation, future interest rates, and political conflicts and uncertainty may have on our operating results, freight volumes, pricing”

“Expeditors relies heavily and must compete based upon the flexibility and sophistication of the technologies, including AI, utilized in performing our core businesses.”

“foreign ownership of a customs brokerage business is prohibited in some jurisdictions.”

“We require employees to work in the office, while other companies may allow fully or partially remote-work policies.”