8-KOther Events

EXPEDITORS INTERNATIONAL OF WASHINGTON INC 8-K Report, Corporate Update (Mar 2, 2022)

Filed March 2, 2022For Securities:EXPD

Summary

Expeditors International of Washington, Inc. (EXPD) filed an 8-K on March 2, 2022, to update investors on a significant cyber-attack that occurred on February 20, 2022. The company was forced to shut down most of its global operating systems to contain the incident. While Expeditors has activated its business continuity plans and is making progress in restoring operations, with its workforce handling shipments and services across most products, full operational capacity has not yet been reached. The company is incurring substantial expenses related to investigation, remediation, recovery, and implementing enhanced business continuity and cybersecurity measures. These elevated cybersecurity costs are expected to continue. Expeditors acknowledges that the cyber-attack and subsequent shutdown will materially and adversely impact its business, revenues, expenses, results of operations, cash flows, and reputation. At the time of the filing, the company could not estimate the full financial implications or the timeline for returning to complete normal operations.

Key Highlights

  • 1Company confirmed it was victim of a cyber-attack on February 20, 2022, leading to a shutdown of most global operating systems.
  • 2Expeditors has implemented business continuity plans and is actively working to restore normal operations.
  • 3Most products and services are now being handled by the workforce, with recovery expanding across locations.
  • 4Significant expenses are being incurred for investigation, remediation, recovery, and enhanced business continuity/cybersecurity systems.
  • 5Higher cybersecurity expenses are anticipated in the future.
  • 6The cyber-attack is expected to have a material adverse impact on the company's financial results, cash flows, and reputation.
  • 7The full financial impact and timeline for returning to complete normal operations remain undetermined at this time.

Frequently Asked Questions

Expeditors International of Washington, Inc. was the target of a cyber-attack on February 20, 2022, which prompted the company to shut down most of its global operating systems to manage the incident.

The company is making progress in returning to normal operations, and its workforce is handling shipments and services across most products. However, full operational capacity has not yet been resumed, and the timeline for complete recovery is unknown.

Expeditors is incurring significant expenses for investigation, remediation, recovery, and enhancing cybersecurity systems. The company anticipates higher cybersecurity costs going forward. The overall impact is expected to be material and adverse on business, revenues, expenses, results of operations, and cash flows, but the specific financial figures are not yet estimable.

Expeditors has activated its business continuity plans, is working to restore systems, and is incurring expenses to investigate, remediate, and recover from the attack. They are also investing in enhanced business continuity and cybersecurity measures for the future.