Item 2. PROPERTIES

Expeditors’ corporate headquarters are located in Bellevue, Washington. We conduct operations in approximately 435 locations worldwide, of which approximately 105 are in the United States and 18 are owned. These owned and leased locations are primarily located close to an airport, ocean port, or on an important border crossing. These facilities are strategically located to cover the geographic areas served by Expeditors. The majority of these facilities contain warehouse facilities. We will from time to time investigate the possibility of building or buying suitable facilities. We believe that current leases can be extended and that suitable alternative facilities are available in the vicinity of each present facility should extensions be unavailable at the conclusion of current leases.