C.H. Robinson(CHRW) - 2023 Q4 - Annual Report

Financial Performance - Total revenue for 2023 was $2,486,636, a decrease of 28.6% from$ 3,480,669 in 2022[34] - Truckload revenue was $1,039,079 in 2023, down 33.4% from$ 1,561,310 in 2022[34] - LTL revenue decreased to $550,373 in 2023 from$ 632,116 in 2022, a decline of 12.9%[34] - Ocean transportation revenue fell to $420,883 in 2023, down 42.3% from$ 729,839 in 2022[34] - Air transportation revenue decreased to $123,470 in 2023, a drop of 37.6% from$ 198,166 in 2022[34] - C.H. Robinson reported consolidated total revenues of $17.6 billion for the fiscal year 2023[114] - Total revenues for the twelve months ended December 31, 2023, were$ 2,997,704, a decrease of 56.0% compared to $6,812,008 in 2022[163] - Total costs and expenses for the same period were$ 2,911,874, down 54.2% from $6,362,644 in 2022[163] - Income from operations decreased by 80.9% to$ 85,830 in 2023 from $449,364 in 2022[163] Operational Metrics - The company processed approximately 19 million shipments in 2023, managing$ 22 billion of freight[96] - C.H. Robinson executed approximately 19 million shipments for over 90,000 customers using more than 450,000 contracted carriers[105] - In 2023, the largest truck transportation provider accounted for less than 1% of the total transportation costs, with contracted motor carriers having fewer than 100 trucks transporting approximately 74% of truckload shipments[125] Sustainability and Social Responsibility - The company is committed to sustainability, offering tools like Emissions IQ™ to help customers reduce carbon emissions[53] - The company has a commitment to reducing its environmental footprint and supports sustainability efforts in the logistics industry[76] - The company reduced its Scope 1 and 2 carbon intensity by 47% by 2023, exceeding its goal of a 40% reduction by 2025[158] - C.H. Robinson's sustainability efforts include collaborations with non-profit and academic institutions to advance innovation in the transportation industry[138] - The company contributed $3.6 million to approximately 1,000 charities in 2023[75] Technology and Innovation - The company emphasizes integrated logistics solutions, managing a greater portion of customer supply chains[33] - Navisphere, the company's multimodal transportation management system, enhances supply chain performance through data-driven tools[39] - C.H. Robinson's technology platform, Navisphere, is essential for managing logistics and supply chain operations[105] - The company offers Managed TMS services, combining logistics expertise with its global technology platform[116] - C.H. Robinson has approximately 900 data scientists, engineers, and developers focused on technology and analytics to enhance supply chain solutions[121] Workforce and Diversity - The employee turnover ratio for the year ended December 31, 2023, was 24%, with a voluntary turnover rate of 13%, a decline of 2 percentage points from 2022[152] - Women represent 48% of the workforce, with 31% in leadership positions as of December 31, 2023[146] - C.H. Robinson's leadership development programs target high-potential employees, including women and employees of color[72] - The company aims to increase compensation transparency to align pay with performance and support career path visibility for employees[156] - The engagement survey in 2023 yielded a score of 77%, indicating a slight decline from previous years, with strengths in manager capabilities and understanding of customer needs[153] Financial Position - Cash and cash equivalents totaled$ 145.5 million as of December 31, 2023, down from $217.5 million in 2022[167] - Working capital increased significantly from$ 266.4 million at December 31, 2022, to $828.7 million at December 31, 2023[167] - Total assets decreased from$ 5,954,564 in 2022 to $5,225,280 in 2023, a decline of approximately 12.3%[1] - Current liabilities decreased from$ 3,322,852 in 2022 to $2,051,993 in 2023, a reduction of about 38.3%[1] - Total liabilities decreased from$ 4,601,142 in 2022 to $3,806,583 in 2023, a reduction of about 17.3%[1] - Long-term debt increased from$ 920,049 in 2022 to $1,420,487 in 2023, an increase of approximately 54.5%[1] - The fair value of the company's Senior Notes was approximately$ 315.7 million as of December 31, 2023[181] Management and Governance - Michael P. Zechmeister, the Chief Financial Officer, plans to retire by May 31, 2024[80] - C.H. Robinson Worldwide, Inc. maintained effective internal control over financial reporting as of December 31, 2023[218] Services Offered - The company operates a global network providing transportation services and logistics solutions across multiple regions including North America, Europe, Asia, Oceania, South America, and the Middle East[224] - The company offers value-added logistics services such as customs brokerage, managed services, warehousing, and supply chain consulting, with pricing based on customer contracts[225] - Accrued transportation expenses represent amounts owed to vendors for services provided while shipments are in transit as of the reporting date[227] - Revenue recognized for services provided while shipments were still in transit amounted to $189.9 million as of December 31, 2023[215] - The allowance for expected credit losses is determined based on past credit loss experience, customer credit risk ratings, and macroeconomic factors[227]