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Condensed Consolidated Statements of Earnings - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Revenues:        
Revenue from Contract with Customer, Excluding Assessed Tax [1] $ 2,074,855 $ 2,090,947 $ 6,130,485 $ 5,902,768
Operating Expenses:        
Direct Operating Costs [2] 1,400,499 1,429,633 4,140,320 3,963,070
Salaries and related 356,331 351,577 1,069,592 1,042,420
Rent and occupancy 41,987 38,202 124,407 113,186
Depreciation and amortization 12,386 13,335 38,456 40,833
Selling and promotion 10,133 10,632 32,852 32,385
Other 46,969 44,414 138,506 131,318
Total operating expenses 1,868,305 1,887,793 5,544,133 5,323,212
Operating income 206,550 203,154 586,352 579,556
Other Income (Expense):        
Interest income 5,501 4,704 18,123 14,171
Other, net 1,895 566 5,822 2,357
Other income (expense), net 7,396 5,270 23,945 16,528
Earnings before income taxes 213,946 208,424 610,297 596,084
Income tax expense 53,319 45,357 156,029 155,871
Net earnings 160,627 163,067 454,268 440,213
Less net earnings attributable to the noncontrolling interest 406 375 1,199 1,224
Net earnings attributable to shareholders $ 160,221 $ 162,692 $ 453,069 $ 438,989
Diluted earnings attributable to shareholders per share $ 0.92 $ 0.92 $ 2.60 $ 2.46
Basic earnings attributable to shareholders per share $ 0.94 $ 0.94 $ 2.65 $ 2.51
Weighted average diluted shares outstanding 173,483 177,173 174,463 178,447
Weighted average basic shares outstanding 170,415 173,394 171,084 174,675
Airfreight services        
Revenues:        
Revenue from Contract with Customer, Excluding Assessed Tax $ 715,450 $ 833,338 $ 2,171,928 $ 2,366,326
Operating Expenses:        
Direct Operating Costs 522,868 620,554 1,574,717 1,727,383
Ocean freight and ocean services        
Revenues:        
Revenue from Contract with Customer, Excluding Assessed Tax 585,374 585,810 1,697,824 1,636,701
Operating Expenses:        
Direct Operating Costs 424,215 435,313 1,234,845 1,199,887
Customs brokerage and other services        
Revenues:        
Revenue from Contract with Customer, Excluding Assessed Tax 774,031 671,799 2,260,733 1,899,741
Operating Expenses:        
Direct Operating Costs $ 453,416 $ 373,766 $ 1,330,758 $ 1,035,800
[1] In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation and other expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change operating income. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised.
[2] Directly related cost of transportation and other expenses totals operating expenses from airfreight services, ocean freight and ocean services and customs brokerage and other services as shown in the condensed consolidated statements of earnings.