The company continues to focus on organic growth, supplemented by select strategic acquisitions, to expand its service offerings and geographic reach.

The company is focused on growing its business services into and out of Europe, with particular focus on certain defined markets beyond our base-line growth expectations. Growing our customs brokerage offering throughout Asia by leveraging our strength and expertise in customs brokerage services and developing critical talent, processes and tools.

The company maintains incentive-based compensation programs that align management compensation with operating income, creating an alignment between branch and corporate performance and shareholder interests.

Management is focused on aligning operational headcount and overhead expenses commensurate with transactional volumes, while also investing in cybersecurity, IT infrastructure, and new solutions.

The company identified material weaknesses in internal control related to information technology general controls, which could result in loss of investor confidence and adversely impact the stock price. Remediation efforts are underway.

Global health emergencies and geopolitical risks, along with the continuing global threats from pandemics, terrorism, cyber-attacks, smuggling, wars, and governments' overriding concern for the safety of passengers and citizens who import and export goods into and out of their respective countries, have resulted in a proliferation of cargo security and other regulations.

The company's ability to provide services to customers is highly dependent on good working relationships with a variety of entities, including airlines, ocean carrier lines, ground transportation providers and governmental agencies.

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.

Expeditors emphasizes quality customer service, underscored by a strong commitment to compliance, and believes that our prices are market competitive.

Larger customers utilize the services of multiple logistics providers and implement sophisticated and efficient procedures for the management of their logistics and supply chains by embracing strategies such as just-in-time delivery, network optimization, transportation flow optimization, and process improvement.

The company devotes significant resources towards the maintenance and enhancement of technology and digital solutions in order to meet these customer demands.

Difficulty in forecasting timing or volumes of customer shipments or rate changes by carriers could adversely impact our margins and operating results.

Our non-asset-based model gives us a flexibility and an ability to change locations, modes, and carriers based on evolving operating conditions.

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

Failure to properly manage, enhance and update technologies could lead to disruptions in our operations or our ability to remain competitive.

Any significant disruptions or unapproved third-party access to our network and systems continuity could have an adverse impact to our business and financial results.

We returned $1,059 million to shareholders through common stock repurchases and dividends.

Capital expenditures in 2024 were primarily related to continuing investments in building and leasehold improvements and technology and facilities equipment.

As of December 31, 2024, we did not have any material off-balance-sheet arrangements, as defined in Item 303(a)(2) of SEC Regulation S-K.

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 are a SmartWay partner company in the United States. SmartWay is a voluntary public-private program sponsored by the U.S. Environmental Protection Agency (EPA) for tracking, documenting, and sharing information about fuel use and freight emissions across supply chains.

The global economic and trade environments remain uncertain, including inflation remaining higher than historical levels, volatility in oil prices, high interest rates and the conflicts in the Middle East and Ukraine.

The potential for further tariff increases and trade restrictions remains high, creating an unpredictable environment for international trade.

Some customers are relocating their manufacturing to other countries to mitigate the impact of higher tariffs on imports, reduce supply chain risks, and address disruptions caused by pandemics and geopolitical issues. These changes could negatively affect our business.