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Condensed Consolidated Statements of Earnings - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Revenues:        
Revenue from Contract with Customer, Excluding Assessed Tax [1] $ 2,464,797 $ 2,074,855 $ 6,947,293 $ 6,130,485
Operating Expenses:        
Direct Operating Costs [2] 1,730,418 1,400,499 4,848,187 4,140,320
Salaries and related 373,613 356,331 1,110,760 1,069,592
Rent and occupancy 42,484 41,987 126,383 124,407
Depreciation and amortization 15,851 12,386 42,620 38,456
Selling and promotion 2,945 10,133 14,301 32,852
Other 47,541 46,969 146,416 138,506
Total operating expenses 2,212,852 1,868,305 6,288,667 5,544,133
Operating income 251,945 206,550 658,626 586,352
Other Income (Expense):        
Interest income 1,504 5,501 8,870 18,123
Other, net 980 1,895 5,161 5,822
Other income, net 2,484 7,396 14,031 23,945
Earnings before income taxes 254,429 213,946 672,657 610,297
Income tax expense 62,710 53,319 173,968 156,029
Net earnings 191,719 160,627 498,689 454,268
Less net earnings attributable to the noncontrolling interest 412 406 1,169 1,199
Net earnings attributable to shareholders $ 191,307 $ 160,221 $ 497,520 $ 453,069
Diluted earnings attributable to shareholders per share $ 1.12 $ 0.92 $ 2.92 $ 2.60
Basic earnings attributable to shareholders per share $ 1.14 $ 0.94 $ 2.96 $ 2.65
Weighted average diluted shares outstanding 170,735 173,483 170,539 174,463
Weighted average basic shares outstanding 168,310 170,415 167,942 171,084
Airfreight services        
Revenues:        
Revenue from Contract with Customer, Excluding Assessed Tax $ 1,093,550 $ 715,450 $ 3,237,179 $ 2,171,928
Operating Expenses:        
Direct Operating Costs 833,689 522,868 2,450,931 1,574,717
Ocean freight and ocean services        
Revenues:        
Revenue from Contract with Customer, Excluding Assessed Tax 612,858 585,374 1,597,997 1,697,824
Operating Expenses:        
Direct Operating Costs 455,072 424,215 1,185,154 1,234,845
Customs brokerage and other services        
Revenues:        
Revenue from Contract with Customer, Excluding Assessed Tax 758,389 774,031 2,112,117 2,260,733
Operating Expenses:        
Direct Operating Costs $ 441,657 $ 453,416 $ 1,212,102 $ 1,330,758
[1] Beginning in the second quarter of 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 impact of these changes on reported segment revenues was immaterial and in the nine months ended September 30, 2019, 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