EXPEDITORS INTERNATIONAL OF WASHINGTON INC Fair Value Disclosure
NOTE 2. FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company’s financial instruments, other than cash, consist primarily of cash equivalents, accounts receivable, accounts payable and accrued expenses. The carrying value of these financial instruments approximates their fair value.
Cash and cash equivalents consist of the following:
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December 31, 2025 |
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December 31, 2024 |
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Cost |
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Fair Value |
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Cost |
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Fair Value |
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Cash and cash equivalents: |
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Cash and overnight deposits |
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$ |
551,899 |
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$ |
551,899 |
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$ |
623,561 |
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$ |
623,561 |
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Corporate commercial paper |
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700,978 |
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701,591 |
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498,185 |
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498,742 |
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Time deposits and money market funds |
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61,408 |
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61,408 |
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26,574 |
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26,574 |
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Total cash and cash equivalents |
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$ |
1,314,285 |
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$ |
1,314,898 |
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$ |
1,148,320 |
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$ |
1,148,877 |
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The fair value of corporate commercial paper and time deposits is based on the use of market interest rates for identical or similar assets (Level 2 fair value measurement).
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 15, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2015 | Feb 25, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.