chrw-20230630

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From to

Commission File Number: 000-23189

C.H. ROBINSON WORLDWIDE, INC.

(Exact name of registrant as specified in its charter)

Delaware

41-1883630

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

14701 Charlson Road

Eden Prairie, MN 55347

(Address of principal executive offices, including zip code)

952-937-8500

Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.10 par value	CHRW	Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Date File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Emerging growth company

☐

Non-accelerated filer

☐

Smaller reporting company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 2, 2023, the number of shares outstanding of the registrant’s Common Stock, par value $0.10 per share, was 116,431,364.

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C.H. ROBINSON WORLDWIDE, INC.

TABLE OF CONTENTS



	PART I. Financial Information

Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets as of Jun e 3 0 , 2023, and December 31, 2022	3
	Condensed Consolidated Statements of Operations and Comprehensive Income for the Three and Six Months Ended June 3 0 , 2023 and 2022	4
	Condensed Consolidated Statements of Stockholders' Investment for the Three and Six Months Ended June 3 0 , 2023 and 2022	5
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30 , 2023 and 2022	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	30

	PART II. Other Information

Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	31
Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	32
	Signatures	33

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

C.H. ROBINSON WORLDWIDE, INC.

Condensed Consolidated Balance Sheets

(unaudited, in thousands, except per share data)


	June 30, 2023		December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	210,155	$	217,482
Receivables, net of allowance for credit loss of $14,461 and $28,749	2,505,130		2,991,753
Contract assets, net of allowance for credit loss	188,207		257,597
Prepaid expenses and other	147,993		122,406

Total current assets	3,051,485		3,589,238
Property and equipment, net of accumulated depreciation and amortization	159,222		159,432
Goodwill	1,469,407		1,470,813
Other intangible assets, net of accumulated amortization	52,591		64,026
Right-of-use lease assets	343,734		372,141
Deferred tax assets	201,858		181,602
Other assets	126,964		117,312
Total assets	$	5,405,261	$	5,954,564

LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Accounts payable	$	1,358,619	$	1,466,998
Outstanding checks	90,969		103,561
Accrued expenses:
Compensation	112,421		242,605
Transportation expense	142,568		199,092
Income taxes	9,763		15,210
Other accrued liabilities	159,065		168,009
Current lease liabilities	72,223		73,722
Current portion of debt	815,863		1,053,655
Total current liabilities	2,761,491		3,322,852

Long-term debt	920,495		920,049
Noncurrent lease liabilities	288,960		313,742
Noncurrent income taxes payable	28,104		28,317
Deferred tax liabilities	15,099		14,256
Other long-term liabilities	3,005		1,926
Total liabilities	4,017,154		4,601,142
Stockholders’ investment:
Preferred stock, $0.10 par value, 20,000 shares authorized; no shares issued or outstanding	—		—
Common stock, $0.10 par value, 480,000 shares authorized; 179,204 and 179,204 shares issued, 116,335 and 116,323 outstanding	11,633		11,632
Additional paid-in capital	734,244		743,288
Retained earnings	5,655,489		5,590,440
Accumulated other comprehensive loss	(92,919)		(88,860)
Treasury stock at cost (62,869 and 62,881 shares)	(4,920,340)		(4,903,078)
Total stockholders’ investment	1,388,107		1,353,422
Total liabilities and stockholders’ investment	$	5,405,261	$	5,954,564

See accompanying notes to the condensed consolidated financial statements.

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C.H. ROBINSON WORLDWIDE, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income

(unaudited, in thousands except per share data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenues:
Transportation	$	4,084,827	$	6,465,642	$	8,412,792	$	12,993,993
Sourcing	337,029		332,833		620,734		620,435
Total revenues	4,421,856		6,798,475		9,033,526		13,614,428
Costs and expenses:
Purchased transportation and related services	3,453,560		5,466,874		7,124,591

SEC Form 10-Q filed by C.H. Robinson Worldwide Inc.