The company is focused on aligning headcount and overhead expenses commensurate with transactional volumes, indicating a strategic response to the changing market conditions. This suggests a focus on operational efficiency and cost management.

Despite the revenue decline, the company continues to invest in people, processes and technology, as well as to invest in strategic efforts to explore new areas for profitable growth.

The company returned $1,595 million to shareholders through common stock repurchases and dividends, indicating a commitment to shareholder value. However, the company has also decreased the amount of common stock that may be repurchased.

Management acknowledges that the global economic slowdown, high customer inventory levels, and excess carrier capacity have negatively impacted the company's financial performance.

Management has taken steps to remediate material weaknesses in internal control over financial reporting, including increasing qualified personnel, performing supplemental procedures, and improving risk assessments.

Management believes that the company's current cash position and operating cash flows will be sufficient to meet its capital and liquidity requirements for the foreseeable future.

The company's business is highly dependent on international commerce, and any reduction or disruption in global trade could negatively affect its operating results.

The global logistics services industry is intensely competitive, and failure to compete or respond to customer requirements could damage the business and results of operations.

Significant disruptions to the company's global systems or the internet for any reason, including cyber-attacks, could have a material negative effect on results.

The global logistics services industry is intensely competitive and is expected to remain so for the foreseeable future. There are a large number of companies competing in one or more segments of the industry, but the number of firms with a global network that offer a full complement of logistics services is more limited.

Many larger customers utilize the services of multiple logistics providers. Customers regularly solicit bids from competitors in order to improve service and to secure favorable pricing and contractual terms.

Expeditors emphasizes quality customer service, underscored by a strong commitment to compliance, and believes that our prices are competitive with the prices of others in the industry.

Personnel costs, our single largest expense, are always less flexible in the very near term as we must staff to meet uncertain demand. As a result, short-term operating results could be disproportionately affected.

The historically high average buy and sell rates caused by the pandemic and unprecedented supply chain disruptions which contributed to the growth in our revenues, expenses and operating income in 2021 and 2022 have cleared as supply chain operations normalized.

So long as the economic environment remains uncertain, we will be focused on aligning headcount and our overhead expenses commensurate with our transactional volumes.

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

We are continually enhancing our systems, including meaningful upgrades to core operating and accounting systems. These efforts are inherently complex and, if not managed properly, could lead to disruptions in our operations or our ability to remain competitive.

We are developing a new accounting system, which is being implemented on a worldwide basis over the next several years. This system is expected to improve the efficiency of certain financial and transactional processes and reporting.

Operating cash flows were $1,053 million and we returned $1,595 million to shareholders through common stock repurchases and dividends.

Total anticipated capital expenditures in 2024 are currently estimated to be $100 million. This includes routine capital expenditures, leasehold and building improvements and investments in technology.

We have a Discretionary Stock Repurchase Plan under which management is allowed to repurchase shares to reduce the issued and outstanding stock to 130 million shares of common stock, down from 140 million at December 31, 2023, as authorized by the Board of Directors in February 2024.

An increasing number of governments, service providers and customers are becoming sensitive to environmental issues.

Expeditors is committed to systematic efforts to reduce the impact of our operations on the environment and assisting our customers in their efforts to reduce their carbon footprint.

We have employee-led Green Teams which cover most of our local district offices and are responsible for projects focused on environmental sustainability, including reducing waste, energy consumption, and Expeditors' Scope 1 and Scope 2 greenhouse gas (GHG) emissions.

We operate in over 60 countries in the competitive global logistics industry and our activities are closely tied to the global economy.

International trade is influenced by many factors, including economic and political conditions in the United States and abroad, currency exchange rates, laws and policies relating to tariffs, trade restrictions, foreign investment and taxation.

We do not have employees, assets, or operations in Russia, Ukraine, Israel, the Gaza Strip or the West Bank. While limited, any shipment activity is conducted with independent agents in those countries in compliance with all applicable trade sanctions, laws and regulations.