PEOPLE
16,000 EMPLOYEES 177 district offjces in over 60 countries Our People Just Care More Our company culture and core values help turn the brightest minds in logistics into the best and most efgective customer service crew worldwide. Leadership, teamwork, and trust are prevailing winds that push rewarding careers - and our great company - forward.
Process Driven As a highly process-driven company, we’ve created a culture that constantly strives for and rewards efficiency. By leveraging our unified technology and systems, we are able to provide a high level of service to our customers throughout our global network. Smarter consolidations of freight through new systems gave us the ability to consistently give tentative fmight details to customers on average 24 hours sooner ELECTRONIC CUSTOMER BOOKINGS ARE UP 21% FROM 2015
PROCESS
TECHNOLOGY
48,000,000 EDI MESSAGES EXCHANGED MONTHLY 1,300,000 technology reports published and utilized by our customers in 2016 3,674 servers in our global network running on a unifjed platform Powering Innovative Solutions For over three decades, our commitment to developing and maintaining our core systems has been the foundation for consistent global operational excellence and data integrity. Every day we use our experience to innovate, optimize, and bring new leading-edge solutions to our customers.
TO OUR SHAREHOLDERS 2016 was a challenging year for the Global Logistics Industry but a successful one for Expeditors. Our industry faced slowing global trade along with an imbalance between supply and demand in many of the markets in which we operate. Even with these challenges, we managed to meet many of our goals, including maintaining operating income as a percentage of net revenue over the 30% threshold and gaining additional market share. We were able to accomplish this because we understand that the industry remains a service industry that is controlled by People, Process and Technology. We have understood this through our history and have always focused our efgorts in each of these areas. This focus is incredibly important when many people are speaking about how technology, and technology alone, will change the industry. We agree that technology will change the industry - we have over 800 IT professionals working on this every day - but only when combined with the right global workforce and built on sound processes. Our people worked incredibly efgectively in 2016. We The better news is that while we are executing extremely processed more shipments and customs declarations, and well against our current strategic plan, we are also moved more kilos of air and ocean freight than we have in investing in opportunities to drive growth far into the our history. We did all of this while maintaining the extremely future. We recognize that to continue to be the industry high level of service for which we are known. leader we must continue to grow and innovate. We recently announced that one of our most senior leaders has taken How did we do this? We continued to focus on the right a new role as the Chief Strategy Officer. It is this type of environment for our employees that leads to a longer tenure. thinking and planning that will allow Expeditors to remain This involves treating our employees with respect, providing at the forefront of our industry and drive the growth that is training, and creating opportunities for advancement. expected of our organization. At the same time, we identifjed best in class industry Thank you to each of our employees who allow this company processes and drove those processes as standards to continue to excel, and thank you to our customers throughout our global network. Finally, we provided our and shareholders who continue to place your trust and people with excellent information systems that have been confjdence in us. designed and built, and continue to be refjned, by our in- house team of professionals. 2017 may bring the same challenges with slowing global trade and a similar imbalance of supply and demand. The good news is that we have proven that we know how to Jeffrey S. Musser manage through these situations. President & Chief Executive Officer, Director
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2016 OR 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 (I.R.S. Employer incorporation or organization) Identification Number) 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) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Stock, par value $.01 per share NASDAQ Global Select Market Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No 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 No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer Accelerated filer Non-accelerated filer (Do not check if a smaller reporting company) Smaller reporting company Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No The aggregate market value of the registrant’s Common Stock held by non-affiliates of the registrant, based upon the closing price as of the last business day of the most recently completed second fiscal quarter ended June 30, 2016, was approximately $8,814,080,920. At February 20, 2017, the number of shares outstanding of registrant’s Common Stock was 180,120,731. DOCUMENTS INCORPORATED BY REFERENCE Portions of the definitive proxy statement for the Registrant’s 2017 Annual Meeting of Shareholders to be held on May 2, 2017 are incorporated by reference into Part III of this Form 10-K.
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