Expeditors International of Washington (EXPD)

EXPD » Topics » ITEM 2 - PROPERTIES

These excerpts taken from the EXPD 10-K filed Feb 27, 2009.

ITEM 2 — PROPERTIES

The Company owns the following properties:

 

Location

  

Nature of Property

United States:   
Seattle, Washington    Office buildings
Near Seattle-Tacoma International Airport (in Washington)    Office building
Houston, Texas    Office and warehouse
Nassau County, New York    Office and warehouse
Middlesex County, New Jersey    Office and warehouse
Near San Francisco International Airport (in California)    Office and warehouse
Near Los Angeles International Airport (in California)    Office and warehouse
Near O’Hare International Airport (in Illinois)    Office and warehouse
Miami, Florida    Office, warehouse and free trade zone*
Spokane, Washington    Acreage
Asia:   
Kowloon, Hong Kong    Offices
Taipei, Taiwan    Office
Seoul, Korea    Office
Shanghai, China    Office building and acreage
Near Beijing Airport (in Beijing)    Acreage
Europe:   
Brussels, Belgium    Office and warehouse
Dublin, Ireland    Office and warehouse
Cork, Ireland    Office and warehouse
Near Heathrow Airport (in London, England)    Acreage
Latin America:   
Alajuela, Costa Rica    Office building
Middle East:   
Cairo, Egypt    Office and warehouse

 

* Company directly owns 50% with Cargo Ventures, LLC, a private, non-affiliated real estate development company.

The Company leases and maintains 66 additional offices and satellite locations in the United States and 373 leased locations throughout the world, each located close to an airport, ocean port, or on an important border crossing. The majority of these facilities contain warehouse facilities. Lease terms are either on a month-to-month basis or terminate at various times through 2019. See Note 6 to the Company’s consolidated financial statements for lease commitments. As an office matures, the Company will investigate the possibility of building or buying suitable facilities. The Company believes that current leases can be extended and that suitable alternative facilities are available in the vicinity of each present facility should extensions be unavailable at the conclusion of current leases.

ITEM 2 — PROPERTIES

The Company owns the following properties:

 

Location

  

Nature of Property

United States:   
Seattle, Washington    Office buildings
Near Seattle-Tacoma International Airport (in Washington)    Office building
Houston, Texas    Office and warehouse
Nassau County, New York    Office and warehouse
Middlesex County, New Jersey    Office and warehouse
Near San Francisco International Airport (in California)    Office and warehouse
Near Los Angeles International Airport (in California)    Office and warehouse
Near O’Hare International Airport (in Illinois)    Office and warehouse
Miami, Florida    Office, warehouse and free trade zone*
Spokane, Washington    Acreage
Asia:   
Kowloon, Hong Kong    Offices
Taipei, Taiwan    Office
Seoul, Korea    Office
Shanghai, China    Office building and acreage
Near Beijing Airport (in Beijing)    Acreage
Europe:   
Brussels, Belgium    Office and warehouse
Dublin, Ireland    Office and warehouse
Cork, Ireland    Office and warehouse
Near Heathrow Airport (in London, England)    Acreage
Latin America:   
Alajuela, Costa Rica    Office building
Middle East:   
Cairo, Egypt    Office and warehouse

 

* Company directly owns 50% with Cargo Ventures, LLC, a private, non-affiliated real estate development company.

The Company leases and maintains 66 additional offices and satellite locations in the United States and 373 leased locations throughout the world, each located close to an airport, ocean port, or on an important border crossing. The majority of these facilities contain warehouse facilities. Lease terms are either on a month-to-month basis or terminate at various times through 2019. See Note 6 to the Company’s consolidated financial statements for lease commitments. As an office matures, the Company will investigate the possibility of building or buying suitable facilities. The Company believes that current leases can be extended and that suitable alternative facilities are available in the vicinity of each present facility should extensions be unavailable at the conclusion of current leases.

ITEM 2 — PROPERTIES

The Company owns the following properties:

 
































































































































Location

  

Nature of Property

United States:  
Seattle, Washington  Office buildings
Near Seattle-Tacoma International Airport (in Washington)  Office building
Houston, Texas  Office and warehouse
Nassau County, New York  Office and warehouse
Middlesex County, New Jersey  Office and warehouse
Near San Francisco International Airport (in California)  Office and warehouse
Near Los Angeles International Airport (in California)  Office and warehouse
Near O’Hare International Airport (in Illinois)  Office and warehouse
Miami, Florida  Office, warehouse and free trade zone*
Spokane, Washington  Acreage
Asia:  
Kowloon, Hong Kong  Offices
Taipei, Taiwan  Office
Seoul, Korea  Office
Shanghai, China  Office building and acreage
Near Beijing Airport (in Beijing)  Acreage
Europe:  
Brussels, Belgium  Office and warehouse
Dublin, Ireland  Office and warehouse
Cork, Ireland  Office and warehouse
Near Heathrow Airport (in London, England)  Acreage
Latin America:  
Alajuela, Costa Rica  Office building
Middle East:  
Cairo, Egypt  Office and warehouse

 





*Company directly owns 50% with Cargo Ventures, LLC, a private, non-affiliated real estate development company.
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">The Company leases and maintains 66 additional offices and satellite locations in the United States and 373 leased locations throughout the world, each
located close to an airport, ocean port, or on an important border crossing. The majority of these facilities contain warehouse facilities. Lease terms are either on a month-to-month basis or terminate at various times through
2019. See Note 6 to the Company’s consolidated financial statements for lease commitments. As an office matures, the Company will investigate the possibility of building or buying suitable facilities. The Company believes that current
leases can be extended and that suitable alternative facilities are available in the vicinity of each present facility should extensions be unavailable at the conclusion of current leases.

STYLE="margin-top:18px;margin-bottom:0px">ITEM 3 — LEGAL PROCEEDINGS

On
October 10, 2007, the U. S. Department of Justice (DOJ) issued a subpoena ordering the Company to produce certain information and records relating to an investigation of alleged anti-competitive behavior amongst air cargo freight forwarders.
The Company has retained the services of a law firm to assist in complying with the DOJ’s subpoena. As part of this process, the Company has met with and continues to co-operate with the DOJ. As of December 31, 2008, the Company had
incurred approximately $14 million of cumulative legal and associated costs. The Company expects to incur additional costs during the course of this ongoing investigation, which could include fines and/or penalties if the DOJ concludes that the
Company has engaged in anti-competitive behavior and such fines and/or penalties could have a material impact on the Company’s financial position, results of operations and operating cash flows.

STYLE="margin-top:0px;margin-bottom:0px"> 


14








On January 3, 2008, the Company was named as a defendant, with seven other European and North
American-based global logistics providers, in a Federal antitrust class action lawsuit filed in the United States District Court of the Eastern District of New York, Precision Associates, Inc. et al v. Panalpina World Transport, No. 08-CV0042.
The plaintiffs’ complaint, which purports to be brought on behalf of a class of customers (and has not yet been certified), asserts claims that the defendants engaged in price fixing regarding the provision of of freight forwarding services in
violation of the Sherman Act. The complaint seeks unspecified damages and injunctive relief. The Company believes that these allegations are without merit and intends to vigorously defend itself.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">On June 18, 2008, the European Commission (EC) issued a request for information to the Company’s UK subsidiary, Expeditors International (UK) Ltd.,
requesting certain information relating to an ongoing investigation of freight forwarders. The Company replied to the request. On February 18, 2009, the EC issued another request for information to the same subsidiary requesting certain additional
information in connection with the EC’s ongoing investigation of freight forwarders. The Company intends to respond to this latest request for information. The Company expects to incur additional costs during the course of this ongoing
investigation, which could include administrative fines if the EC concludes that the Company has engaged in anti-competitive behavior and such fines could have a material impact on the Company’s financial position, results of operations and
operating cash flows.

On May 16, 2008, a former employee filed a putative class action lawsuit against the Company in the United
States District Court for the Northern District of California, Kingery v. Expeditors International of Washington, Inc., No. 08-02510. The original lawsuit, purported to be brought on behalf of some group of current and former salaried
management and supervisory employees, which the plaintiff alleges were misclassified as exempt from overtime and meal/rest breaks under California and Federal law. In February 2009, plaintiff, through his counsel, announced that the lawsuit will not
be prosecuted as a class action, but solely as a lawsuit involving plaintiff individually. The complaint seeks unspecified damages and injunctive relief. The Company believes that these allegations are without merit and intends to vigorously defend
itself. Further, in management’s opinion, the lawsuit will not have a significant effect on the Company’s operations or financial position.

FACE="Times New Roman" SIZE="2">At this time the Company is unable to estimate the range of loss or damages, if any, that might result as an outcome of any of these proceedings.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">The Company is involved in other claims and lawsuits which arise in the ordinary course of business, none of which currently, in management’s
opinion, will have a significant effect on the Company’s operations or financial position.

ITEM 2 — PROPERTIES

The Company owns the following properties:

 
































































































































Location

  

Nature of Property

United States:  
Seattle, Washington  Office buildings
Near Seattle-Tacoma International Airport (in Washington)  Office building
Houston, Texas  Office and warehouse
Nassau County, New York  Office and warehouse
Middlesex County, New Jersey  Office and warehouse
Near San Francisco International Airport (in California)  Office and warehouse
Near Los Angeles International Airport (in California)  Office and warehouse
Near O’Hare International Airport (in Illinois)  Office and warehouse
Miami, Florida  Office, warehouse and free trade zone*
Spokane, Washington  Acreage
Asia:  
Kowloon, Hong Kong  Offices
Taipei, Taiwan  Office
Seoul, Korea  Office
Shanghai, China  Office building and acreage
Near Beijing Airport (in Beijing)  Acreage
Europe:  
Brussels, Belgium  Office and warehouse
Dublin, Ireland  Office and warehouse
Cork, Ireland  Office and warehouse
Near Heathrow Airport (in London, England)  Acreage
Latin America:  
Alajuela, Costa Rica  Office building
Middle East:  
Cairo, Egypt  Office and warehouse

 





*Company directly owns 50% with Cargo Ventures, LLC, a private, non-affiliated real estate development company.
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">The Company leases and maintains 66 additional offices and satellite locations in the United States and 373 leased locations throughout the world, each
located close to an airport, ocean port, or on an important border crossing. The majority of these facilities contain warehouse facilities. Lease terms are either on a month-to-month basis or terminate at various times through
2019. See Note 6 to the Company’s consolidated financial statements for lease commitments. As an office matures, the Company will investigate the possibility of building or buying suitable facilities. The Company believes that current
leases can be extended and that suitable alternative facilities are available in the vicinity of each present facility should extensions be unavailable at the conclusion of current leases.

STYLE="margin-top:18px;margin-bottom:0px">ITEM 3 — LEGAL PROCEEDINGS

On
October 10, 2007, the U. S. Department of Justice (DOJ) issued a subpoena ordering the Company to produce certain information and records relating to an investigation of alleged anti-competitive behavior amongst air cargo freight forwarders.
The Company has retained the services of a law firm to assist in complying with the DOJ’s subpoena. As part of this process, the Company has met with and continues to co-operate with the DOJ. As of December 31, 2008, the Company had
incurred approximately $14 million of cumulative legal and associated costs. The Company expects to incur additional costs during the course of this ongoing investigation, which could include fines and/or penalties if the DOJ concludes that the
Company has engaged in anti-competitive behavior and such fines and/or penalties could have a material impact on the Company’s financial position, results of operations and operating cash flows.

STYLE="margin-top:0px;margin-bottom:0px"> 


14








On January 3, 2008, the Company was named as a defendant, with seven other European and North
American-based global logistics providers, in a Federal antitrust class action lawsuit filed in the United States District Court of the Eastern District of New York, Precision Associates, Inc. et al v. Panalpina World Transport, No. 08-CV0042.
The plaintiffs’ complaint, which purports to be brought on behalf of a class of customers (and has not yet been certified), asserts claims that the defendants engaged in price fixing regarding the provision of of freight forwarding services in
violation of the Sherman Act. The complaint seeks unspecified damages and injunctive relief. The Company believes that these allegations are without merit and intends to vigorously defend itself.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">On June 18, 2008, the European Commission (EC) issued a request for information to the Company’s UK subsidiary, Expeditors International (UK) Ltd.,
requesting certain information relating to an ongoing investigation of freight forwarders. The Company replied to the request. On February 18, 2009, the EC issued another request for information to the same subsidiary requesting certain additional
information in connection with the EC’s ongoing investigation of freight forwarders. The Company intends to respond to this latest request for information. The Company expects to incur additional costs during the course of this ongoing
investigation, which could include administrative fines if the EC concludes that the Company has engaged in anti-competitive behavior and such fines could have a material impact on the Company’s financial position, results of operations and
operating cash flows.

On May 16, 2008, a former employee filed a putative class action lawsuit against the Company in the United
States District Court for the Northern District of California, Kingery v. Expeditors International of Washington, Inc., No. 08-02510. The original lawsuit, purported to be brought on behalf of some group of current and former salaried
management and supervisory employees, which the plaintiff alleges were misclassified as exempt from overtime and meal/rest breaks under California and Federal law. In February 2009, plaintiff, through his counsel, announced that the lawsuit will not
be prosecuted as a class action, but solely as a lawsuit involving plaintiff individually. The complaint seeks unspecified damages and injunctive relief. The Company believes that these allegations are without merit and intends to vigorously defend
itself. Further, in management’s opinion, the lawsuit will not have a significant effect on the Company’s operations or financial position.

FACE="Times New Roman" SIZE="2">At this time the Company is unable to estimate the range of loss or damages, if any, that might result as an outcome of any of these proceedings.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">The Company is involved in other claims and lawsuits which arise in the ordinary course of business, none of which currently, in management’s
opinion, will have a significant effect on the Company’s operations or financial position.

EXCERPTS ON THIS PAGE:

10-K (4 sections)
Feb 27, 2009
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki