Correction of Immaterial Errors

6 Months Ended

Jun. 30, 2021

Accounting Changes And Error Corrections [Abstract]

Correction of Immaterial Errors

Note 9. Correction of Immaterial Errors

Beginning in the first quarter 2019, the Company made changes to its process and presentation of freight services revenue and directly related transportation operating expenses with the objective that at each reporting level (reporting entity, segment and consolidated level) the gross revenue and associated directly related operating expenses be representative of the location where the services were performed, the operating expenses were incurred and where the revenues were earned. During the second quarter 2021, management identified and corrected certain immaterial errors in the Company’s historical financial statements primarily related to this process that was utilized through the first quarter of 2021. The process missed an intercompany elimination of revenues and an equal and offsetting amount of directly related transportation expenses, principally impacting airfreight services in North Asia. The errors overstated revenues and directly related transportation operating expenses by equal amounts in the consolidated statements of earnings. The errors had no impact on operating income, net earnings, and earnings per share nor any other financial statement amount. Further, the errors had no impact on the balance sheets, statements of shareholders’ equity, other comprehensive income and cash flows. These errors do not affect any of the metrics used to calculate or evaluate management’s compensation and had no impact on bonuses, commissions, share-based compensation or any other employee remuneration. Historical amounts have been revised and are presented on a comparable basis.

The below tables present the effect of the correction for the following periods:

	Three Months ended Mar 31, 2021
	As         Reported		Adjustments			As         Corrected
Revenues:
Airfreight services	$	1,476,961	$	(151,046	)	$	1,325,915
Ocean freight and ocean services		958,178		(4,266	)		953,912
Customs brokerage and other services		922,401		(3,408	)		918,993
Total revenues1		3,357,540		(158,720	)		3,198,820
Directly related transportation operating expenses:
Airfreight services	$	1,105,590	$	(151,046	)	$	954,544
Ocean freight and ocean services		746,701		(4,266	)		742,435
Customs brokerage and other services		553,713		(3,408	)		550,305
Total directly related transportation operating expenses1		2,406,004		(158,720	)		2,247,284

¹The North Asia business segment accounts for 73% of total adjustments.

	Three Months ended June 30, 2020
	As         Reported		Adjustments			As         Corrected
Revenues:
Airfreight services	$	1,434,590	$	(164,936	)	$	1,269,654
Ocean freight and ocean services		491,712		(2,327	)		489,385
Customs brokerage and other services		654,330		(2,291	)		652,039
Total revenues1		2,580,632		(169,554	)		2,411,078
Directly related transportation operating expenses:
Airfreight services	$	1,097,073	$	(164,936	)	$	932,137
Ocean freight and ocean services		363,599		(2,327	)		361,272
Customs brokerage and other services		370,369		(2,291	)		368,078
Total directly related transportation operating expenses1		1,831,041		(169,554	)		1,661,487

¹The North Asia business segment accounts for 78% of total adjustments.

	Six Months ended June 30, 2020
	As         Reported		Adjustments			As         Corrected
Revenues:
Airfreight services	$	2,143,629	$	(218,377	)	$	1,925,252
Ocean freight and ocean services		985,139		(4,414	)		980,725
Customs brokerage and other services		1,353,728		(4,860	)		1,348,868
Total revenues1		4,482,496		(227,651	)		4,254,845
Directly related transportation operating expenses:
Airfreight services	$	1,617,242	$	(218,377	)	$	1,398,865
Ocean freight and ocean services		730,082		(4,414	)		725,668
Customs brokerage and other services		770,445		(4,860	)		765,585
Total directly related transportation operating expenses1		3,117,769		(227,651	)		2,890,118

¹The North Asia business segment accounts for 76% of total adjustments.