Expeditors Reports Third Quarter 2012 EPS Of $.42 Per Share1

Investors may submit written questions via e-mail to: [e-mail] . Questions received by the end of business on November 9, 2012 will be considered in management's 8-K “Responses to Selected Questions” expected to be filed on or about November 30, 2012.

Disclaimer on Forward-Looking Statements:

Certain portions of this release contain forward-looking statements which are based on certain assumptions and expectations of future events that are subject to risks and uncertainties, including comments on uncertain global economy and industry challenges, lackluster consumer and business demand, ability to maintain or increase operating margin and ability to remain profitable and continue to build market share. Actual future results and trends may differ materially from historical results or those projected in any forward-looking statements depending on a variety of factors including, but not limited to, our ability to maintain consistent and stable operating results, future success of our business model, ability to perpetuate profits, changes in customer demand for Expeditors’ services caused by a general economic slow-down, customers’ inventory build-up, decreased consumer confidence, volatility in equity markets, energy prices, political changes, regulatory actions or changes or the unpredictable acts of competitors and other risks, risk factors and uncertainties detailed in our Annual Report as updated by our reports on Form 10-Q, filed with the Securities and Exchange Commission.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
				September 30,				December 31,
				2012				2011
Assets
Current Assets:
Cash and cash equivalents				$	1,367,642			$	1,294,356
Accounts receivable, net					1,015,350				934,752
Deferred Federal and state income taxes					10,955				10,415
Other current assets					46,048				47,360
Total current assets					2,439,995				2,286,883
Property and equipment, net					551,610				538,806
Goodwill and other intangibles, net					9,774				10,557
Other assets, net					30,808				30,581
				$	3,032,187			$	2,866,827
Liabilities and Equity
Current Liabilities:
Accounts payable					667,395				606,628
Accrued expenses, primarily salaries and related costs					174,862				169,445
Federal, state and foreign income taxes					23,943				20,072
Total current liabilities					866,200				796,145
Deferred Federal and state income taxes					70,288				60,613
Commitments and contingencies
Shareholders’ Equity:
Preferred stock; none issued					—				—
Common stock, par value $.01 per share; issued and outstanding 208,950,205 shares at September 30, 2012 and 212,003,662 shares at December 31, 2011					2,090				2,120
Additional paid-in capital					118				13,260
Retained earnings					2,082,542				1,991,222
Accumulated other comprehensive income (loss)					5,267				(2,964	)
Total shareholders’ equity					2,090,017				2,003,638
Noncontrolling interest					5,682				6,431
Total equity					2,095,699				2,010,069
				$	3,032,187			$	2,866,827

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(In thousands, except share data)
(Unaudited)
				Three months ended										Nine months ended
				September 30,										September 30,
				2012					2011					2012					2011
Revenues:
Airfreight services				$	622,678				$	736,946				$	1,900,131				$	2,187,730
Ocean freight and ocean services					549,250					510,521					1,502,584					1,437,493
Customs brokerage and other services					359,736					358,901					1,045,271					1,023,361
Total revenues					1,531,664					1,606,368					4,447,986					4,648,584
Operating Expenses:
Airfreight consolidation					471,947					558,047					1,437,301					1,658,963
Ocean freight consolidation					432,518					392,249					1,177,919					1,109,603
Customs brokerage and other services					162,061					162,226					467,406					459,696
Salaries and related costs					252,899					258,512					748,956					745,441
Rent and occupancy costs					21,304					21,352					63,333					64,087
Depreciation and amortization					10,030					9,199					29,245					27,630
Selling and promotion					7,847					9,342					25,370					28,527
Other					27,959					31,683					95,683					91,374
Total operating expenses					1,386,565					1,442,610					4,045,213					4,185,321
Operating income					145,099					163,758					402,773					463,263
Interest income					2,831					2,888					9,241					7,520
Interest expense					(182	)				(279	)				(1,024	)				(722	)
Other, net					1,232					10,792					6,011					12,766
Other income, net					3,881					13,401					14,228					19,564
Earnings before income taxes					148,980					177,159					417,001					482,827
Income tax expense					60,253					70,283					167,531					189,724
Net earnings					88,727					106,876					249,470					293,103
Less net earnings attributable to the noncontrolling interest					237					272					318					267
Net earnings attributable to shareholders				$	88,490				$	106,604				$	249,152				$	292,836
Diluted earnings attributable to shareholders per share				$	.42				$	.50				$	1.17				$	1.36
Basic earnings attributable to shareholders per share				$	.42				$	.50				$	1.18				$	1.38
Dividends declared and paid per common share				$	—				$	—				$	.28				$	.25
Weighted average diluted shares outstanding					211,397,602					214,717,451					212,916,309					215,376,675
Weighted average basic shares outstanding					210,135,763					212,256,119					211,314,850					212,160,994

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands) (Unaudited)
				Three months ended										Nine months ended
				September 30,										September 30,
				2012					2011					2012					2011
Operating Activities:
Net earnings				$	88,727				$	106,876				$	249,470				$	293,103
Adjustments to reconcile net earnings to net cash from operating activities:
Provision for losses on accounts receivable					463					(629	)				(392	)				1,161
Deferred income tax expense (benefit)					4,588					(9,328	)				4,330					(9,663	)
Excess tax benefits from stock plans					(59	)				(537	)				(4,291	)				(5,068	)
Stock compensation expense					11,320					12,738					32,846					33,446
Depreciation and amortization					10,030					9,199					29,245					27,630
Gain on sale of assets					(13	)				(3	)				(143	)				(54	)
Other					1,273					1,210					1,826					1,828
Changes in operating assets and liabilities:
Increase in accounts receivable					(23,520	)				(4,312	)				(73,812	)				(11,802	)
Increase in other current assets					(7,195	)				(8,344	)				(3,629	)				(5,863	)
(Decrease) increase in accounts payable and accrued expenses					(23,267	)				(24,070	)				60,966					14,060
Increase in income taxes payable, net					6,819					10,505					12,961					10,417
Net cash from operating activities					69,166					93,305					309,377					349,195
Investing Activities:
Purchase of property and equipment					(10,170	)				(20,619	)				(37,072	)				(58,854	)
Proceeds from sale of property and equipment					41					24					294					109
Other, net					(32	)				(632	)				192					(2,676	)
Net cash from investing activities					(10,161	)				(21,227	)				(36,586	)				(61,421	)
Financing Activities:
Proceeds from issuance of common stock					24,599					30,966					45,001					54,591
Repurchases of common stock					(87,227	)				(43,298	)				(193,493	)				(108,572	)
Excess tax benefits from stock plans					59					537					4,291					5,068
Dividends paid					—					—					(59,358	)				(53,014	)
Distributions to noncontrolling interest					(1,177	)				(822	)				(1,177	)				(822	)
Net cash from financing activities					(63,746	)				(12,617	)				(204,736	)				(102,749	)
Effect of exchange rate changes on cash and cash equivalents					8,136					(24,477	)				5,231					(8,676	)
Increase in cash and cash equivalents					3,395					34,984					73,286					176,349
Cash and cash equivalents at beginning of period					1,364,247					1,225,830					1,294,356					1,084,465
Cash and cash equivalents at end of period				$	1,367,642				$	1,260,814				$	1,367,642				$	1,260,814
Interest and taxes paid:
Interest				$	27				$	48				$	447				$	65
Income taxes					50,911					65,856					155,006					183,167

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Business Segment Information
(In thousands) (Unaudited)
								OTHER									EUROPE			MIDDLE
				UNITED				NORTH			LATIN			ASIA			and			EAST and			ELIMI-				CONSOLI-
				STATES				AMERICA			AMERICA			PACIFIC			AFRICA			INDIA			NATIONS				DATED
Three months ended September 30, 2012:
Revenues from unaffiliated customers				$	383,830			50,208			20,815			804,855			198,124			73,832			—				1,531,664
Transfers between geographic areas					24,423			2,677			4,140			10,676			9,624			4,507			(56,047	)			—
Total revenues				$	408,253			52,885			24,955			815,531			207,748			78,339			(56,047	)			1,531,664
Net revenues				$	187,737			23,412			13,978			146,992			69,841			23,178			—				465,138
Operating income				$	56,096			6,886			4,239			59,620			13,312			4,946			—				145,099
Identifiable assets				$	1,570,615			102,020			58,687			714,982			423,488			162,225			170				3,032,187
Capital expenditures				$	5,681			222			405			1,934			1,476			452			—				10,170
Depreciation and amortization				$	5,942			188			220			1,691			1,555			434			—				10,030
Equity				$	1,281,250			58,471			33,444			499,590			158,939			96,621			(32,616	)			2,095,699
Three months ended September 30, 2011:
Revenues from unaffiliated customers				$	388,736			49,341			21,353			839,069			229,776			78,093			—				1,606,368
Transfers between geographic areas					27,161			2,989			5,025			10,500			10,727			4,596			(60,998	)			—
Total revenues				$	415,897			52,330			26,378			849,569			240,503			82,689			(60,998	)			1,606,368
Net revenues				$	189,381			23,783			15,035			162,785			77,768			25,094			—				493,846
Operating income				$	57,564			7,345			4,846			69,001			18,616			6,386			—				163,758
Identifiable assets				$	1,509,393			87,554			52,058			667,421			414,991			149,253			2,499				2,883,169
Capital expenditures				$	7,435			315			162			7,201			4,981			525			—				20,619
Depreciation and amortization				$	4,904			250			240			1,822			1,488			495			—				9,199
Equity				$	1,242,594			49,134			27,258			435,466			146,652			92,668			(31,714	)			1,962,058
Nine months ended September 30, 2012:
Revenues from unaffiliated customers				$	1,140,258			149,964			61,450			2,273,783			606,696			215,835			—				4,447,986
Transfers between geographic areas					69,135			7,608			14,010			32,686			28,694			13,828			(165,961	)			—
Total revenues				$	1,209,393			157,572			75,460			2,306,469			635,390			229,663			(165,961	)			4,447,986
Net revenues				$	551,503			70,769			43,537			414,714			212,871			71,966			—				1,365,360
Operating income				$	150,814			21,340			13,119			158,626			40,510			18,364			—				402,773
Identifiable assets				$	1,570,615			102,020			58,687			714,982			423,488			162,225			170				3,032,187
Capital expenditures				$	20,676			551			1,060			9,823			3,529			1,433			—				37,072
Depreciation and amortization				$	17,320			556			644			4,960			4,389			1,376			—				29,245
Equity				$	1,281,250			58,471			33,444			499,590			158,939			96,621			(32,616	)			2,095,699
Nine months ended September 30, 2011:
Revenues from unaffiliated customers				$	1,156,647			141,004			62,822			2,383,549			673,111			231,451			—				4,648,584
Transfers between geographic areas					77,099			8,454			15,866			29,853			32,789			13,305			(177,366	)			—
Total revenues				$	1,233,746			149,458			78,688			2,413,402			705,900			244,756			(177,366	)			4,648,584
Net revenues				$	548,918			66,065			45,295			454,889			230,521			74,634			—				1,420,322
Operating income				$	169,050			18,895			14,095			189,981			53,200			18,042			—				463,263
Identifiable assets				$	1,509,393			87,554			52,058			667,421			414,991			149,253			2,499				2,883,169
Capital expenditures				$	14,815			923			462			16,535			24,568			1,551			—				58,854
Depreciation and amortization				$	14,815			830			773			5,638			4,014			1,560			—				27,630
Equity				$	1,242,594			49,134			27,258			435,466			146,652			92,668			(31,714	)			1,962,058

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