8-KOther Events

EXPEDITORS INTERNATIONAL OF WASHINGTON INC 8-K Report, Corporate Update (Apr 25, 2012)

Filed April 25, 2012For Securities:EXPD

Summary

Expeditors International of Washington, Inc. (EXPD) announced on April 25, 2012, that it received a federal grand jury subpoena from the Department of Justice (DOJ) on April 19, 2012. The subpoena requests documents concerning exports or re-exports by unaffiliated third parties to end-users in a US-embargoed country, specifically related to products and/or services from a US manufacturer. In a parallel development, the company is also responding to an administrative subpoena from the Commerce Department's Bureau of Industry and Security (BIS) regarding similar export activities of US-origin goods to the same embargoed country. Expeditors is cooperating fully with both the DOJ and BIS. The company acknowledges that if it or any subsidiary is found to have facilitated these specified transactions, it could face significant fines and penalties, which may materially affect its financial performance and cash flows.

Key Highlights

  • 1Received federal grand jury subpoena from the Department of Justice (DOJ) on April 19, 2012.
  • 2Subpoena concerns exports/re-exports by third parties to a US-embargoed country.
  • 3Subpoena relates to products/services from a US manufacturer.
  • 4Also responding to an administrative subpoena from the Commerce Department's Bureau of Industry and Security (BIS).
  • 5BIS subpoena also pertains to exports of US-origin goods to the same embargoed country.
  • 6Company is cooperating with both DOJ and BIS investigations.
  • 7Potential for material impact on results of operations and cash flows due to fines/penalties.

Frequently Asked Questions

The investigations by the DOJ and BIS are focused on whether Expeditors International of Washington, Inc. or its subsidiaries, directly or indirectly, facilitated the export or re-export of products and/or services by unaffiliated third parties to end-users in a US-embargoed country. This specifically pertains to goods or services originating from a US manufacturer.

If the company or its subsidiaries are found to have facilitated these specified export or re-export activities, Expeditors could incur significant fines and penalties. These potential financial repercussions could have a material adverse impact on the company's results of operations and cash flows for any given financial period.

Expeditors International of Washington, Inc. is cooperating fully with both the Department of Justice (DOJ) and the Bureau of Industry and Security (BIS) as they conduct their investigations.

The federal grand jury subpoena from the DOJ was received on April 19, 2012. The company is also responding to an administrative subpoena from the BIS, though the exact date of receipt for the BIS subpoena is not specified in this filing.