C.H. Robinson Worldwide, Inc. ("C.H. Robinson") (NASDAQ:CHRW) today reported financial results for the quarter ended September 30, 2022.

Third Quarter Key Metrics:

Gross profits increased 5.0% to $880.7 million and adjusted gross profits⁽¹⁾ increased 5.1% to $887.2 million
Income from operations decreased 7.5% to $287.6 million
Adjusted operating margin⁽¹⁾ decreased 440 basis points to 32.4%
Diluted earnings per share (EPS) decreased 3.8% to $1.78
Cash generated by operations improved by $699.0 million to $625.5 million

⁽¹⁾ Adjusted gross profits and adjusted operating margin are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to page 11 for further discussion and a GAAP to Non-GAAP reconciliation.

"On our second quarter earnings call in late July, I talked about a deceleration in demand that we expected to see in the second half of 2022 in three large verticals for freight, including weakness in the retail market and further slowing in the housing market. We're now seeing those expectations play out, with slowing freight demand and price declines in the freight forwarding and surface transportation markets," said Bob Biesterfeld, President and Chief Executive Officer of C.H. Robinson. "Throughout the changes in the freight cycle, we have maintained our focus on continuing to improve the customer and carrier experience and scaling our digital processes and operating model to foster sustainable, profitable growth."

"Today, we believe that we are entering a time of slower economic growth where freight markets will continue to cool from their peaks and will operate more reliably and at more normalized rates, with fewer disruptions. These changes in market conditions, coupled with many successful endeavors on our digital roadmap directed at scaling our model to be more efficient, are allowing us to take actions to structurally reduce our overall cost structure," stated Biesterfeld.

"Compared to our third quarter operating expenses, the actions we're currently taking are expected to generate $175 million of gross cost savings on an annualized basis by the fourth quarter of 2023. Inflation, other headwinds such as annual pay increases and tailwinds such as lower incentive compensation are expected to result in net cost headwinds of $25 million in 2023 that we expect will partially offset the gross savings, resulting in net annualized cost reductions of $150 million by the fourth quarter of next year."

Biesterfeld added, "We also continue to identify opportunities to accelerate our enterprise-wide digital and product strategy. To drive greater impact and speed of execution, Arun Rajan has been promoted to the role of Chief Operating Officer. Since joining C.H. Robinson in 2021, Arun has been a critical contributor to, and strategic leader of, our digital and product strategy. Arun is helping us think and act differently as we accelerate our pace of digital transformation and scale our operating model. In his new role, in addition to leading the product organization, Arun will have expanded direct responsibility for the technology and marketing organizations. Bringing these three critical functions together under a single vision and leadership structure will allow us to integrate these functions more deeply into single-threaded teams and put the needs of our customers and carriers at the center of our organizational design and ensure that we are positioned well to meet their needs while accelerating the impacts across the business units of C.H. Robinson. Arun's teams will work directly with the business unit presidents to operationalize these efforts."

Summary of Third Quarter Results Compared to the Third Quarter of 2021

Total revenues decreased 4.0% to $6.0 billion, driven primarily by lower ocean and air pricing, partially offset by higher pricing in less-than-truckload ("LTL") and truckload.
Gross profits increased 5.0% to $880.7 million. Adjusted gross profits increased 5.1% to $887.2 million, primarily driven by higher adjusted gross profit per transaction in truckload, partially offset by the lower adjusted gross profit per transaction in ocean.
Operating expenses increased 12.4% to $599.6 million. Personnel expenses increased 9.4% to $437.5 million, primarily due to higher average employee headcount, which increased 13.0%. Selling, general and administrative ("SG&A") expenses of $162.0 million increased 21.3%, primarily due to increased legal settlements, higher purchased and contracted services and increased travel expenses.
Income from operations totaled $287.6 million, down 7.5% due to the increase in operating expenses, partially offset by the increase in adjusted gross profits. Adjusted operating margin of 32.4% declined 440 basis points.
Interest and other income/expense, net totaled $16.0 million of expense, consisting primarily of $20.8 million of interest expense, which increased $7.7 million versus last year due primarily to a higher average debt balance, partially offset by a $5.2 million favorable impact from foreign currency revaluation and realized foreign currency gains and losses.
The effective tax rate in the quarter was 16.9% compared to 16.0% in the third quarter last year.
Net income totaled $225.8 million, down 8.6% from a year ago. Diluted EPS of $1.78 decreased 3.8%.

Summary of Year-to-Date Results Compared to 2021

Total revenues increased 18.2% to $19.6 billion, driven primarily by higher pricing across most of our services.
Gross profits increased 23.0% to $2.8 billion. Adjusted gross profits increased 23.1% to $2.8 billion, primarily driven by higher adjusted gross profit per transaction across most of our services.
Operating expenses increased 14.7% to $1.7 billion. Personnel expenses increased 15.3% to $1.3 billion, primarily due to higher average employee headcount, which increased 14.0%, and higher incentive compensation costs. SG&A expenses increased 13.0% to $426.6 million, primarily due to increases in purchased and contracted services, legal settlements, travel expenses, and warehouse expenses, partially offset by a $25.3 million gain on the sale-leaseback of our Kansas City regional center.
Income from operations totaled $1.1 billion, up 38.8% from last year, primarily due to the increase in adjusted gross profits, partially offset by the increase in operating expenses. Adjusted operating margin of 39.0% increased 440 basis points.
Interest and other income/expense, net totaled $57.5 million of expense, which primarily consisted of $52.3 million of interest expense, which increased $14.3 million versus last year due to a higher average debt balance. The year-to-date results also included a $6.6 million unfavorable impact from foreign currency revaluation and realized foreign currency gains and losses.
The effective tax rate for the nine months was 19.2% compared to 18.5% in the year-ago period.
Net income totaled $844.3 million, up 37.5% from a year ago. Diluted EPS of $6.50 increased 42.5%.

North American Surface Transportation ("NAST") Results

Summarized financial results of our NAST segment are as follows (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022		2021		% change		2022		2021		% change
Total revenues	$	4,002,461	$	3,814,988	4.9	%	$	12,264,396	$	10,611,892	15.6	%
Adjusted gross profits⁽¹⁾		563,787		460,149	22.5	%		1,694,438		1,317,853	28.6	%
Income from operations		211,899		149,035	42.2	%		670,752		436,911	53.5	%

____________________________________________

⁽¹⁾ Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

Third quarter total revenues for the NAST segment totaled $4.0 billion, an increase of 4.9% over the prior year, primarily driven by higher LTL and truckload pricing. NAST adjusted gross profits increased 22.5% in the quarter to $563.8 million. Adjusted gross profits in truckload increased 20.8% due to a 20.5% increase in adjusted gross profit per shipment and a 0.5% increase in truckload volume. Our average truckload linehaul rate per mile charged to our customers, which excludes fuel surcharges, decreased approximately 13.0% in the quarter compared to the prior year, while truckload linehaul cost per mile, excluding fuel surcharges, decreased approximately 17.0%, resulting in a 15.5% increase in truckload adjusted gross profit per mile. LTL adjusted gross profits increased 22.7% versus the year-ago period, as adjusted gross profit per order increased 24.5% and LTL volumes declined 1.5%. Operating expenses increased 13.1% primarily due to increased employee headcount, legal settlements, and technology expenses. Income from operations increased 42.2% to $211.9 million, and adjusted operating margin expanded 520 basis points to 37.6%. NAST average employee headcount was up 10.8% in the quarter.

Global Forwarding Results

Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022		2021		% change		2022		2021		% change
Total revenues	$	1,511,115	$	1,978,901	(23.6	)%	$	5,798,702	$	4,585,734	26.5	%
Adjusted gross profits⁽¹⁾		248,433		310,898	(20.1	)%		894,724		763,952	17.1	%
Income from operations		85,953		165,155	(48.0	)%		421,148		363,956	15.7	%

____________________________________________

⁽¹⁾ Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

Third quarter total revenues for the Global Forwarding segment decreased 23.6% to $1.5 billion, driven by lower pricing and volumes in our ocean and air services, reflecting softening market demand. Adjusted gross profits decreased 20.1% in the quarter to $248.4 million. Ocean adjusted gross profits decreased 25.6%, driven by a 24.0% decrease in adjusted gross profit per shipment and a 2.5% decline in shipments. Adjusted gross profits in air decreased 21.1%, driven by a 16.5% decrease in metric tons shipped and a 5.5% decrease in adjusted gross profit per metric ton shipped. Customs adjusted gross profits increased 9.5%, driven by a 5.5% increase in adjusted gross profit per transaction and a 4.0% increase in transaction volume. Operating expenses increased 11.5%, primarily driven by increased salaries and technology expenses. Third quarter average employee headcount increased 13.4%. Income from operations decreased 48.0% to $86.0 million, and adjusted operating margin declined 1,850 basis points to 34.6% in the quarter.

All Other and Corporate Results

Total revenues and adjusted gross profits for Robinson Fresh, Managed Services and Other Surface Transportation are summarized as follows (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022		2021		% change		2022		2021		% change
Total revenues	$	501,800	$	469,806	6.8	%	$	1,566,706	$	1,402,664	11.7	%
Adjusted gross profits⁽¹⁾:
Robinson Fresh	$	27,677	$	26,651	3.8	%	$	93,163	$	81,539	14.3	%
Managed Services		29,595		26,720	10.8	%		85,295		78,510	8.6	%
Other Surface Transportation		17,702		19,774	(10.5	)%		57,383		53,894	6.5	%

____________________________________________

⁽¹⁾ Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

Third quarter Robinson Fresh adjusted gross profits increased 3.8% to $27.7 million, driven by an increase in adjusted gross profit per case, which is primarily related to integrated supply chain and technology services. Managed Services adjusted gross profits increased 10.8% in the quarter, due to growth in adjusted gross profit per transaction. Other Surface Transportation adjusted gross profits decreased 10.5% to $17.7 million, primarily due to a 7.3% decrease in Europe truckload adjusted gross profits.

Other Income Statement Items

The third quarter effective tax rate was 16.9%, up from 16.0% last year. We expect our 2022 full-year effective tax rate to be near the low end of our previous guidance of 19% to 21%.

Interest and other income/expense, net totaled $16.0 million of expense, consisting primarily of $20.8 million of interest expense, which increased $7.7 million versus the third quarter of 2021 due to a higher average debt balance, partially offset by a $5.2 million favorable impact from foreign currency revaluation and realized foreign currency gains and losses.

Diluted weighted average shares outstanding in the quarter were down 4.7% due primarily to share repurchases over the past twelve months.

Cash Flow Generation and Capital Distribution

Cash generated from operations totaled $625.5 million in the third quarter, compared to $73.5 million cash used by operations in the third quarter of 2021. The $699.0 million improvement was primarily due to a $359.3 million sequential decrease in net operating working capital in the third quarter of 2022, compared to a $411.8 million sequential increase in the third quarter of 2021. The decrease in net operating working capital in the third quarter of 2022 resulted primarily from a $655.2 million sequential decrease in accounts receivable and contract assets, compared to a $295.9 million sequential decrease in total accounts payable and accrued transportation expense.

In the third quarter of 2022, cash returned to shareholders increased 156% versus last year to $606.7 million, with $535.7 million in repurchases of common stock and $71.0 million in cash dividends.

Capital expenditures totaled $31.3 million in the quarter. Capital expenditures for 2022 are expected to be at the high end of our previous guidance of $110 million to $120 million.

Outlook

"As inflationary pressures weigh on consumer discretionary spending and global economic growth, we continue to believe that our global suite of services, our growing digital platform, our responsive team of logistics experts, and our broad exposure to different industry verticals and geographies, supported by our resilient and flexible non-asset-based business model put us in a position to continue delivering strong financial results," Biesterfeld stated. "But we also need to continue evolving our organization to bring focus to our highest strategic priorities, including keeping the needs of our customers and carriers at the center of what we do and lowering our overall cost structure by driving scale. The work that our team is executing on related to scaling our digital processes and operating model, while working backwards from the needs of our customers and carriers, is focused on driving improvements in our customer and carrier experience, and in turn, driving market share gains and growth. We're also focused on improving productivity, which in turn reduces our long-term operating costs and increases profits, leading to continued strong returns to shareholders."

About C.H. Robinson

C.H. Robinson solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With $28 billion in freight under management and 20 million shipments annually, we are one of the world's largest logistics platforms. Our global suite of services accelerates trade to seamlessly deliver the products and goods that drive the world's economy. With the combination of our multimodal transportation management system and expertise, we use our information advantage to deliver smarter solutions for our 100,000 customers and 85,000 contract carriers. Our technology is built by and for supply chain experts to bring faster, more meaningful improvements to our customers' businesses. As a responsible global citizen, we are also proud to contribute millions of dollars to support causes that matter to our company, our Foundation and our employees. For more information, visit us at www.chrobinson.com (NASDAQ:CHRW).

Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to, such factors as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; fuel price increases or decreases, or fuel shortages; competition and growth rates within the global logistics industry; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; risks associated with significant disruptions in the transportation industry; changes in relationships with existing contracted truck, rail, ocean, and air carriers; changes in our customer base due to possible consolidation among our customers; risks with reliance on technology to operate our business; cyber-security related risks; risks associated with operations outside of the United States; our ability to identify or complete suitable acquisitions; our ability to successfully integrate the operations of acquired companies with our historic operations; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with the potential impact of changes in government regulations; our ability to hire and retain a sufficient number of qualified personnel; risks associated with the changes to income tax regulations; risks associated with the produce industry, including food safety and contamination issues; the impact of war on the economy; changes to our capital structure; changes due to catastrophic events including pandemics such as COVID-19; and other risks and uncertainties detailed in our Annual and Quarterly Reports.

Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update such statement to reflect events or circumstances arising after such date. All remarks made during our financial results conference call will be current at the time of the call, and we undertake no obligation to update the replay.

Conference Call Information:

C.H. Robinson Worldwide Third Quarter 2022 Earnings Conference Call

Wednesday, November 2, 2022; 8:30 a.m. Eastern Time

Presentation slides and a simultaneous live audio webcast of the conference call may be accessed through the Investor Relations link on C.H. Robinson's website at www.chrobinson.com.

To participate in the conference call by telephone, please call ten minutes early by dialing: 877-269-7756

International callers dial +1-201-689-7817

Adjusted Gross Profit by Service Line (in thousands) This table of summary results presents our service line adjusted gross profits on an enterprise basis. The service line adjusted gross profits in the table differ from the service line adjusted gross profits discussed within the segments as our segments have revenues from multiple service lines.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022		2021		% change		2022		2021		% change
Adjusted gross profits⁽¹⁾:
Transportation
Truckload	$	398,418	$	333,067	19.6	%	$	1,214,465	$	941,117	29.0	%
LTL		162,130		132,482	22.4	%		482,740		383,903	25.7	%
Ocean		160,122		214,926	(25.5	)%		609,543		501,422	21.6	%
Air		47,831		60,552	(21.0	)%		166,136		159,503	4.2	%
Customs		27,881		25,466	9.5	%		83,196		75,201	10.6	%
Other logistics services		65,441		53,018	23.4	%		182,638		158,450	15.3	%
Total transportation		861,823		819,511	5.2	%		2,738,718		2,219,596	23.4	%
Sourcing		25,371		24,681	2.8	%		86,285		76,152	13.3	%
Total adjusted gross profits	$	887,194	$	844,192	5.1	%	$	2,825,003	$	2,295,748	23.1	%

____________________________________________

⁽¹⁾ Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

GAAP to Non-GAAP Reconciliation (unaudited, in thousands) Our adjusted gross profit is a non-GAAP financial measure. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. We believe adjusted gross profit is a useful measure of our ability to source, add value, and sell services and products that are provided by third parties, and we consider adjusted gross profit to be a primary performance measurement. Accordingly, the discussion of our results of operations often focuses on the changes in our adjusted gross profit. The reconciliation of gross profit to adjusted gross profit is presented below (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022		2021		% change		2022		2021		% change
Revenues:
Transportation	$	5,724,364	$	5,999,901	(4.6	)%	$	18,718,357	$	15,800,576	18.5	%
Sourcing		291,012		263,794	10.3	%		911,447		799,714	14.0	%
Total revenues		6,015,376		6,263,695	(4.0	)%		19,629,804		16,600,290	18.2	%
Costs and expenses:
Purchased transportation and related services		4,862,541		5,180,390	(6.1	)%		15,979,639		13,580,980	17.7	%
Purchased products sourced for resale		265,641		239,113	11.1	%		825,162		723,562	14.0	%
Direct internally developed software amortization		6,457		5,152	25.3	%		18,831		14,601	29.0	%
Total direct expenses		5,134,639		5,424,655	(5.3	)%		16,823,632		14,319,143	17.5	%
Gross profit	$	880,737	$	839,040	5.0	%	$	2,806,172	$	2,281,147	23.0	%
Plus: Direct internally developed software amortization		6,457		5,152	25.3	%		18,831		14,601	29.0	%
Adjusted gross profit	$	887,194	$	844,192	5.1	%	$	2,825,003	$	2,295,748	23.1	%

Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. We believe adjusted operating margin is a useful measure of our profitability in comparison to our adjusted gross profit which we consider a primary performance metric as discussed above. The comparison of operating margin to adjusted operating margin is presented below:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022			2021			% change		2022			2021			% change

Total revenues	$	6,015,376		$	6,263,695		(4.0	)%	$	19,629,804		$	16,600,290		18.2	%
Income from operations		287,609			310,769		(7.5	)%		1,102,748			794,702		38.8	%
Operating margin		4.8	%		5.0	%	(20) bps			5.6	%		4.8	%	80 bps

Adjusted gross profit	$	887,194		$	844,192		5.1	%	$	2,825,003		$	2,295,748		23.1	%
Income from operations		287,609			310,769		(7.5	)%		1,102,748			794,702		38.8	%
Adjusted operating margin		32.4	%		36.8	%	(440) bps			39.0	%		34.6	%	440 bps

Condensed Consolidated Statements of Income (unaudited, in thousands, except per share data)

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022			2021			% change		2022			2021			% change

Revenues:
Transportation	$	5,724,364		$	5,999,901		(4.6	)%	$	18,718,357		$	15,800,576		18.5	%
Sourcing		291,012			263,794		10.3	%		911,447			799,714		14.0	%
Total revenues		6,015,376			6,263,695		(4.0	)%		19,629,804			16,600,290		18.2	%
Costs and expenses:
Purchased transportation and related services		4,862,541			5,180,390		(6.1	)%		15,979,639			13,580,980		17.7	%
Purchased products sourced for resale		265,641			239,113		11.1	%		825,162			723,562		14.0	%
Personnel expenses		437,545			399,880		9.4	%		1,295,670			1,123,616		15.3	%
Other selling, general, and administrative expenses		162,040			133,543		21.3	%		426,585			377,430		13.0	%
Total costs and expenses		5,727,767			5,952,926		(3.8	)%		18,527,056			15,805,588		17.2	%
Income from operations		287,609			310,769		(7.5	)%		1,102,748			794,702		38.8	%
Interest and other income/expense, net		(15,972	)		(16,662	)	(4.1	)%		(57,541	)		(41,419	)	38.9	%
Income before provision for income taxes		271,637			294,107		(7.6	)%		1,045,207			753,283		38.8	%
Provision for income taxes		45,839			47,054		(2.6	)%		200,876			139,136		44.4	%
Net income	$	225,798		$	247,053		(8.6	)%	$	844,331		$	614,147		37.5	%

Net income per share (basic)	$	1.81		$	1.87		(3.2	)%	$	6.60		$	4.61		43.2	%
Net income per share (diluted)	$	1.78		$	1.85		(3.8	)%	$	6.50		$	4.56		42.5	%

Weighted average shares outstanding (basic)		124,980			131,845		(5.2	)%		127,944			133,201		(3.9	)%
Weighted average shares outstanding (diluted)		127,190			133,436		(4.7	)%		129,839			134,661		(3.6	)%

Business Segment Information (unaudited, in thousands, except average employee headcount)

	NAST		Global Forwarding		All Other and Corporate			Consolidated
Three Months Ended September 30, 2022
Total revenues	$	4,002,461	$	1,511,115	$	501,800		$	6,015,376
Adjusted gross profits⁽¹⁾		563,787		248,433		74,974			887,194
Income (loss) from operations		211,899		85,953		(10,243	)		287,609
Depreciation and amortization		5,739		5,368		11,868			22,975
Total assets⁽²⁾		3,624,333		2,266,923		904,274			6,795,530
Average employee headcount		7,493		5,861		4,691			18,045

	NAST		Global Forwarding		All Other and Corporate			Consolidated
Three Months Ended September 30, 2021
Total revenues	$	3,814,988	$	1,978,901	$	469,806		$	6,263,695
Adjusted gross profits⁽¹⁾		460,149		310,898		73,145			844,192
Income (loss) from operations		149,035		165,155		(3,421	)		310,769
Depreciation and amortization		6,620		5,427		10,359			22,406
Total assets⁽²⁾		3,437,461		2,438,106		727,039			6,602,606
Average employee headcount		6,764		5,167		4,037			15,968

____________________________________________

⁽¹⁾ Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material.

⁽²⁾All cash and cash equivalents are included in All Other and Corporate.

Business Segment Information (unaudited, in thousands, except average employee headcount)

	NAST		Global Forwarding		All Other and Corporate			Consolidated
Nine Months Ended September 30, 2022
Total revenues	$	12,264,396	$	5,798,702	$	1,566,706		$	19,629,804
Adjusted gross profits⁽¹⁾		1,694,438		894,724		235,841			2,825,003
Income from operations		670,752		421,148		10,848			1,102,748
Depreciation and amortization		18,101		16,394		34,228			68,723
Total assets⁽²⁾		3,624,333		2,266,923		904,274			6,795,530
Average employee headcount		7,420		5,735		4,497			17,652

	NAST		Global Forwarding		All Other and Corporate			Consolidated
Nine Months Ended September 30, 2021
Total revenues	$	10,611,892	$	4,585,734	$	1,402,664		$	16,600,290
Adjusted gross profits⁽¹⁾		1,317,853		763,952		213,943			2,295,748
Income (loss) from operations		436,911		363,956		(6,165	)		794,702
Depreciation and amortization		19,779		17,352		31,490			68,621
Total assets⁽²⁾		3,437,461		2,438,106		727,039			6,602,606
Average employee headcount		6,650		4,951		3,881			15,482

____________________________________________

⁽¹⁾ Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material.

⁽²⁾All cash and cash equivalents are included in All Other and Corporate.

Condensed Consolidated Balance Sheets (unaudited, in thousands)

	September 30, 2022		December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	187,532	$	257,413
Receivables, net of allowance for credit loss		3,802,160		3,963,487
Contract assets, net of allowance for credit loss		363,697		453,660
Prepaid expenses and other		79,977		129,593
Total current assets		4,433,366		4,804,153

Property and equipment, net of accumulated depreciation and amortization		158,706		139,831
Right-of-use lease assets		349,386		292,559
Intangible and other assets, net of accumulated amortization		1,854,072		1,791,569
Total assets	$	6,795,530	$	7,028,112

Liabilities and stockholders' investment
Current liabilities:
Accounts payable and outstanding checks	$	1,755,769	$	1,919,301
Accrued expenses:
Compensation		204,661		201,421
Transportation expense		280,500		342,778
Income taxes		62,912		100,265
Other accrued liabilities		205,034		171,266
Current lease liabilities		71,002		66,311
Current portion of debt		779,000		525,000
Total current liabilities		3,358,878		3,326,342

Long-term debt		1,419,380		1,393,649
Noncurrent lease liabilities		293,325		241,369
Noncurrent income taxes payable		26,865		28,390
Deferred tax liabilities		18,041		16,113
Other long-term liabilities		1,480		315
Total liabilities		5,117,969		5,006,178

Total stockholders' investment		1,677,561		2,021,934
Total liabilities and stockholders' investment	$	6,795,530	$	7,028,112

Condensed Consolidated Statements of Cash Flow (unaudited, in thousands, except operational data)

	Nine Months Ended September 30,
	2022			2021
Operating activities:
Net income	$	844,331		$	614,147
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation and amortization		68,723			68,621
Provision for credit losses		(2,407	)		3,979
Stock-based compensation		78,346			93,962
Deferred income taxes		(76,362	)		(11,683	)
Excess tax benefit on stock-based compensation		(12,440	)		(10,830	)
Other operating activities		(24,011	)		1,384
Changes in operating elements, net of acquisitions:
Receivables		66,536			(1,290,485	)
Contract assets		90,481			(220,889	)
Prepaid expenses and other		13,437			(38,525	)
Accounts payable and outstanding checks		(109,493	)		595,036
Accrued compensation		6,701			35,413
Accrued transportation expenses		(62,278	)		165,580
Accrued income taxes		(24,202	)		6,400
Other accrued liabilities		22,209			4,947
Other assets and liabilities		(2,782	)		2,043
Net cash provided by operating activities		876,789			19,100

Investing activities:
Purchases of property and equipment		(50,719	)		(26,503	)
Purchases and development of software		(49,935	)		(26,062	)
Acquisitions, net of cash acquired		—			(14,749	)
Other investing activities		63,208			—
Net cash used for investing activities		(37,446	)		(67,314	)

Financing activities:
Proceeds from stock issued for employee benefit plans		93,415			43,183
Total repurchases of common stock		(1,050,175	)		(454,047	)
Cash dividends		(216,258	)		(208,926	)
Proceeds from long-term borrowings		200,000			—
Payments on long-term borrowings		—			(2,048	)
Proceeds from short-term borrowings		3,674,000			2,768,000
Payments on short-term borrowings		(3,595,000	)		(2,136,251	)
Net cash (used for) provided by financing activities		(894,018	)		9,911
Effect of exchange rates on cash		(15,206	)		(2,844	)

Net change in cash and cash equivalents		(69,881	)		(41,147	)
Cash and cash equivalents, beginning of period		257,413			243,796
Cash and cash equivalents, end of period	$	187,532		$	202,649

	As of September 30,
Operational Data:	2022			2021
Employees		17,945			16,231

CHRW-IR

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C.H. Robinson Reports 2022 Third Quarter Results