Rush Enterprises (RUSHA) 10-Q 9 Nov 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 01, 2015
Common Class B [Member]
Entity Common Stock, Shares Outstanding (in shares)		10,093,305
Common Class A [Member]
Entity Common Stock, Shares Outstanding (in shares)		30,277,484
Entity Registrant Name	RUSH ENTERPRISES INC \TX\
Entity Central Index Key	1,012,019
Trading Symbol	rusha
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 64,918,000	$ 191,463,000
Accounts receivable, net	204,404,000	170,027,000
Note receivable affiliate	14,158,000	8,168,000
Inventories, net	1,114,831,000	1,024,104,000
Prepaid expenses and other	8,799,000	28,312,000
Asset held for sale	5,053,000	5,053,000
Deferred income taxes, net	18,929,000	18,387,000
Total current assets	1,431,092,000	1,445,514,000
Investments	6,650,000	6,905,000
Property and equipment, net	1,090,712,000	923,080,000
Goodwill, net	285,065,000	265,145,000
Other assets, net	56,971,000	53,618,000
Total assets	2,870,490,000	2,694,262,000
Liabilities and shareholders’ equity
Floor plan notes payable	921,560,000	845,977,000
Current maturities of long-term debt	129,772,000	149,065,000
Current maturities of capital lease obligations	14,371,000	11,231,000
Liabilities directly associated with asset held for sale	5,440,000	6,160,000
Trade accounts payable	151,596,000	124,555,000
Customer deposits	21,473,000	44,879,000
Accrued expenses	100,514,000	92,743,000
Total current liabilities	1,344,726,000	1,274,610,000
Long-term debt, net of current maturities	452,550,000	429,189,000
Capital lease obligations, net of current maturities	63,629,000	46,019,000
Other long-term liabilities	5,226,000	4,470,000
Deferred income taxes, net	172,179,000	175,635,000
Preferred stock, par value $.01 per share; 1,000,000 shares authorized; 0 shares outstanding in 2015 and 2014	0	0
Common stock, par value $.01 per share; 60,000,000 class A shares and 20,000,000 class B shares authorized; 30,276,084 class A shares and 10,093,305 class B shares outstanding in 2015; and 29,889,332 class A shares and 9,999,122 class B shares outstanding in 2014	430,000	424,000
Additional paid-in capital	285,390,000	272,486,000
Treasury stock, at cost: 2,616,657 class B shares in 2015 and 2,560,580 class B shares in 2014	(43,368,000)	(41,904,000)
Retained earnings	590,033,000	533,793,000
Accumulated other comprehensive loss, net of tax	(305,000)	(460,000)
Total shareholders’ equity	832,180,000	764,339,000
Total liabilities and shareholders’ equity	$ 2,870,490,000	$ 2,694,262,000

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Common Class A [Member]
Common stock, shares authorized (in shares)	60,000,000	60,000,000
Common stock, shares outstanding (in shares)	30,276,084	29,889,332
Common Class B [Member]
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares outstanding (in shares)	10,093,305	9,999,122
Treasury stock, shares (in shares)	2,616,657	2,560,580
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
New and used truck sales	$ 872,106	$ 846,256	$ 2,590,178	$ 2,244,447
Parts and service	360,711	340,632	1,051,001	980,588
Lease and rental	50,545	45,114	147,634	130,160
Finance and insurance	6,164	5,227	16,373	14,559
Other	4,550	3,793	12,728	12,396
Total revenue	1,294,076	1,241,022	3,817,914	3,382,150
Cost of products sold:
New and used truck sales	813,178	787,952	2,413,712	2,084,945
Parts and service	227,775	216,067	664,697	626,786
Lease and rental	45,115	38,264	130,242	112,406
Total cost of products sold	1,086,068	1,042,283	3,208,651	2,824,137
Gross profit	208,008	198,739	609,263	558,013
Selling, general and administrative	160,776	148,238	474,712	431,943
Depreciation and amortization	11,228	9,488	32,051	27,483
Gain (loss) on sale of assets	26	5	(581)	109
Operating income	36,030	41,018	101,919	98,696
Interest expense, net	3,568	2,689	10,107	8,363
Income before taxes	32,462	38,329	91,812	90,333
Provision for income taxes	12,579	14,851	35,572	35,003
Net income	$ 19,883	$ 23,478	$ 56,240	$ 55,330
Earnings per common share:
Basic (in dollars per share)	$ 0.49	$ 0.59	$ 1.40	$ 1.39
Diluted (in dollars per share)	$ 0.48	$ 0.57	$ 1.37	$ 1.36
Weighted average shares outstanding:
Basic (in shares)	40,361	40,008	40,235	39,700
Diluted (in shares)	41,136	41,091	41,065	40,820
Comprehensive income	$ 19,883	$ 23,610	$ 56,395	$ 55,892

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 56,240,000	$ 55,330,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	106,506,000	90,335,000
Loss (gain) on sale of property and equipment	581,000	(109,000)
Stock-based compensation expense related to stock options and employee stock purchases	9,889,000	9,127,000
Deferred income tax benefit	(4,097,000)	(16,025,000)
Excess tax expense (benefit) from stock-based compensation	$ 345,000	(5,004,000)
Acquired research and development		2,000,000
Change in accounts receivable, net	$ (39,054,000)	(50,804,000)
Change in inventories, net	(47,482,000)	(67,019,000)
Change in prepaid expenses and other, net	19,964,000	6,672,000
Change in trade accounts payable	27,187,000	25,901,000
(Payments) draws on floor plan notes payable – trade, net	(13,690,000)	26,714,000
Change in customer deposits	(23,336,000)	(33,845,000)
Change in accrued expenses	6,413,000	45,339,000
Net cash provided by operating activities	99,466,000	88,612,000
Cash flows from investing activities:
Acquisition of property and equipment	(250,211,000)	(182,164,000)
Proceeds from the sale of property and equipment	2,950,000	342,000
Business acquisitions	(65,116,000)	(147,758,000)
Proceeds from the sale of available for sale securities	275,000	150,000
Change in other assets	(3,302,000)	1,018,000
Net cash used in investing activities	(315,404,000)	(328,412,000)
Cash flows from financing activities:
Draws on floor plan notes payable – non-trade, net	95,055,000	101,784,000
Proceeds from long-term debt	115,169,000	153,369,000
Principal payments on long-term debt	(111,821,000)	(84,076,000)
Principal payments on capital lease obligations	(10,567,000)	(10,232,000)
Proceeds from issuance of shares relating to employee stock options and employee stock purchases	3,366,000	11,363,000
Excess tax benefits (expense) from stock-based compensation	(345,000)	5,004,000
Common stock repurchased	(1,464,000)	(9,989,000)
Net cash provided by financing activities	89,393,000	167,223,000
Net decrease in cash and cash equivalents	(126,545,000)	(72,577,000)
Cash and cash equivalents, beginning of period	191,463,000	217,305,000
Cash and cash equivalents, end of period	64,918,000	144,728,000
Supplemental disclosure of cash flow information:
Interest	26,261,000	21,833,000
Income taxes, net of refunds	$ 12,131,000	18,683,000
Noncash investing activities:
Common stock issued related to business acquisition		2,000,000
Assets acquired under capital leases	$ 31,317,000	$ 8,795,000

Note 1 - Principles of Consolid

Note 1 - Principles of Consolidation and Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1 – Principles of Consolidation and Basis of Presentation The interim consolidated financial statements included herein have been prepared by Rush Enterprises, Inc. and its subsidiaries (collectively referred to as the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). All adjustments have been made to the accompanying interim consolidated financial statements, which, in the opinion of our management, are necessary for a fair presentation of our operating results. All adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. It is recommended that these interim consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014. Results of operations for interim periods are not necessarily indicative of results that may be expected for any other interim periods or the full fiscal year.

Note 2 - Other Assets

Note 2 - Other Assets	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Other Assets Disclosure [Text Block]	2 – Other Assets The capitalized costs, including capitalized interest, of the SAP enterprise software and SAP dealership management system are recorded in Other Assets on the Consolidated Balance Sheets in the amount of $36.5 million at September 30, 2015 and $38.5 million at December 31, 2014. These capitalized costs are net of accumulated amortization of $12.6 million at September 30, 2015 and $10.3 million at December 31, 2014. The SAP software is being amortized over a period of 15 years. The Company completed the conversion of all of its Rush Truck Centers and leasing operations to the SAP enterprise software and SAP dealership management system in the third quarter of 2015. Amortization expense relating to the SAP software, which is recognized in depreciation and amortization expense in the Consolidated Statement of Income , was $0.8 million for the three months ended September 30, 2015 and the three months ended September 30, 2014, and $2.5 million for the nine months ended September 30, 2015 and $2.4 million for the nine months ended September 30, 2014. The Company estimates that amortization expense relating to the SAP software will be approximately $3.3 million for each of the next five succeeding years. Our only significant identifiable intangible assets, other than goodwill, are rights under franchise agreements with manufacturers. The fair value of franchise rights is determined at the acquisition date by discounting the projected cash flows specific to each acquisition. The carrying value of our manufacturer franchise rights was $7.9 million at September 30, 2015 and $7.0 million at December 31, 2014, and is included in Other Assets on the accompanying consolidated balance sheets. The Company has determined that manufacturer franchise rights have an indefinite life as there are no economic or other factors that limit their useful lives and they are expected to generate cash flows indefinitely due to the historically long lives of the manufacturers’ brand names. Furthermore, to the extent that any agreements evidencing manufacturer franchise rights have expiration dates, the Company expects that it will be able to renew those agreements in the ordinary course of business. Accordingly, the Company does not amortize manufacturer franchise rights. Due to the fact that manufacturer franchise rights are specific to geographic region, the Company has determined that the geographic region is the appropriate level for purposes of testing franchise rights for impairment. Management reviews indefinite-lived manufacturer franchise rights for impairment annually during the fourth quarter, or more often if events or circumstances indicate that an impairment may have occurred. The Company is subject to financial statement risk to the extent that manufacturer franchise rights become impaired due to decreases in the fair market value of its individual franchises. The significant estimates and assumptions used by management in assessing the recoverability of manufacturer franchise rights include estimated future cash flows, present value discount rate, and other factors. Any changes in these estimates or assumptions could result in an impairment charge. The estimates of future cash flows, based on reasonable and supportable assumptions and projections, require management’s subjective judgment. Depending on the assumptions and estimates used, the estimated future cash flows projected in the evaluations of manufacturer franchise rights can vary within a range of outcomes. No impairment write down was required in the fourth quarter of 2014. The Company cannot predict the occurrence of certain events that might adversely affect the reported value of manufacturer franchise rights in the future. However, no facts or circumstances were noted during the three months ended September 30, 2015 that would indicate impairment.

Note 3 - Commitments and Contin

Note 3 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	3 – Commitments and Contingencies From time to time, the Company is involved in litigation arising out of its operations in the ordinary course of business. The Company maintains liability insurance, including product liability coverage, in amounts deemed adequate by management. To date, aggregate costs to us for claims, including product liability actions, have not been material. However, an uninsured or partially insured claim, or claim for which indemnification is not available, could have a material adverse effect on our financial condition or results of operations. The Company believes that there are no claims or litigation pending, the outcome of which could have a material adverse effect on its financial position or results of operations. However, due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on our financial condition or results of operations for the fiscal period in which such resolution occurred.

Note 4 - Earnings Per Share

Note 4 - Earnings Per Share	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	4 – Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share information): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Numerator for basic and diluted earnings per share – Net income available to common shareholders $ 19,883 $ 23,478 $ 56,240 $ 55,330 Denominator– Denominator for basic earnings per share – weighted average shares outstanding 40,361 40,008 40,235 39,700 Effect of dilutive securities– Employee and director stock options and restricted share awards 775 1,083 830 1,120 Denominator for diluted earnings per share – adjusted weighted average shares outstanding and assumed conversions 41,136 41,091 41,065 40,820 Basic earnings per common share $ .49 $ .59 $ 1.40 $ 1.39 Diluted earnings per common share and common share equivalents $ .48 $ .57 $ 1.37 $ 1.36 Options to purchase shares of common stock that were outstanding for the three months and nine months ended September 30, 2015 and 2014 that were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive are as follows (in thousands): Three Months Ended September 30, Nine months Ended September 30, 2015 2014 2015 2014 Anti-dilutive options 1,328 395 1,139 516

Note 5 - Stock Options and Rest

Note 5 - Stock Options and Restricted Stock Awards	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	5 – Stock Options and Restricted Stock Awards Valuation and Expense Information The Company accounts for stock-based compensation in accordance with Accounting Standards Codification (“ASC”) 718-10, “Compensation – Stock Compensation,” which requires the measurement and recognition of compensation expense for all share-based payment awards made to the Company’s employees and directors, including employee stock options, restricted share awards, restricted stock unit awards and employee stock purchases related to the Employee Stock Purchase Plan based on estimated fair values. Stock-based compensation expense, calculated using the Black-Scholes option-pricing model and included in selling, general and administrative expense, was $2.7 million for the three months ended September 30, 2015, and $2.0 million for the three months ended September 30, 2014. Stock-based compensation expense, included in selling, general and administrative expense, for the nine months ended September 30, 2015, was $9.9 million and for the nine months ended September 30, 2014, was $9.1 million. As of September 30, 2015 , there was $18.8 million of total unrecognized compensation expense related to non-vested, share-based compensation arrangements to be recognized over a weighted-average period of 2.7 years.

Note 6 - Financial Instruments

Note 6 - Financial Instruments and Fair Value	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Fair Value Disclosures [Text Block]	6 – Financial Instruments and Fair Value The Company measures certain financial assets and liabilities at fair value on a recurring basis. Financial instruments consist primarily of cash, accounts receivable, accounts payable and floor plan notes payable. The carrying values of our financial instruments approximate fair value due to either their short-term nature or the existence of variable interest rates, which approximate market rates. Certain methods and assumptions were used by the Company in estimating the fair value of financial instruments at September 30, 2015, and December 31, 2014. The carrying value of current assets and current liabilities approximates the fair value due to the short maturity of these items. The fair value of the Company’s long-term debt is based on secondary market indicators. Because the Company’s debt is not quoted, estimates are based on each obligation’s characteristics, including remaining maturities, interest rate, credit rating, collateral and liquidity. Accordingly, the Company concluded that the valuation measurement inputs of its long-term debt represent, at its lowest level, current market interest rates available to the Company for similar debt and our current credit standing and has categorized such debt within Level 2 of the hierarchy framework. The carrying amount approximates fair value. If investments are deemed to be impaired, the Company determines whether the impairment is temporary or other than temporary. If the impairment is deemed to be temporary, the Company records an unrealized loss in other comprehensive income. If the impairment is deemed other than temporary, the Company records the impairment in the Company’s Consolidated Statements of Income. Auction Rate Securities In prior years, the Company invested in interest-bearing short-term investments primarily consisting of investment-grade auction rate securities classified as available-for-sale and reported at fair value. These types of investments were designed to provide liquidity through an auction process that reset the applicable interest rates at predetermined periods ranging from 1 to 35 days. This reset mechanism was intended to allow existing investors to continue to own their respective interest in the auction rate security or to gain immediate liquidity by selling their interests at par. Auctions for investment grade securities held by the Company have failed. However, a failed auction does not represent a default by the issuer. The auction rate securities continue to pay interest in accordance with the terms of the underlying security; however, liquidity will be limited until there is a successful auction or until such time as other markets for these investments develop. The Company has the intent and ability to hold these auction rate securities until liquidity returns to the market. The Company does not believe that the lack of liquidity relating to its auction rate securities will have a material impact on its ability to fund operations. The Company holds auction rate securities with underlying tax-exempt municipal bonds that mature in 2030 and have a fair value of $6.6 million and a cost basis of $7.2 million as of September 30, 2015, and a fair value of $6.9 million and a cost basis of $7.4 million as of December 31, 2014. The Company redeemed $275,000 of the auction rate securities, at par, during the second quarter of 2015. These bonds have credit wrap insurance and a credit rating of A by a major credit rating agency. The Company valued the auction rate securities at September 30, 2015 using a discounted cash flow model based on the characteristics of the individual securities, which the Company believes yields the best estimate of fair value. The first step in the valuation included a credit analysis of the security which considered various factors, including the credit quality of the issuer, the instrument’s position within the capital structure of the issuing authority, and the composition of the authority’s assets including the effect of insurance and/or government guarantees. Next, the future cash flows of the instruments were projected based on certain assumptions regarding the auction rate market significant to the valuation, including that the auction rate market will remain illiquid and auctions will continue to fail, causing the interest rate to be the maximum applicable rate. This assumption resulted in discounted cash flow analysis being performed through 2019, the point at which the Company estimates the securities will be redeemed by the municipality. The projected cash flows were then discounted using the applicable yield curve plus a 225 basis point liquidity premium added to the applicable discount rate. The Company recorded a pre-tax impairment charge of $1.0 million on these auction rate securities in 2011 and a subsequent pre-tax increase in fair value of $427,000 during 2014. The Company believes that the impairment is temporary and has included the impairment in accumulated other comprehensive loss. The table below presents disclosures about the auction rate securities measured at fair value on a recurring basis in the Company’s financial statements as follows (in thousands): At September 30, 2015 At December 31, 2014 Level 1 Level 2 Level 3 Level 1 Level 2 Inputs Level 3 Inputs Investment in auction rate securities $ — $ — $ 6,650 $ — $ — $ 6,905 C ost Basis Gross Unrealized Loss In Accumulated OCI Fair Value September 30, 2015 Investment in auction rate securities $ 7,150 $ 500 $ 6,650 December 31, 2014 Investment in auction rate securities $ 7,425 $ 520 $ 6,905 Interest Rate Swap Agreements In January 2012, the Company entered into swap agreements to hedge against the potential impact of increases in interest rates on its floating-rate debt instruments. At September 30, 2015, the Company did not have any interest rate swap contracts. Swap agreements that hedge exposures to changes in interest rates exposed the Company to credit risk and market risk. These swap contracts were designated as cash flow hedges, to pay fixed rates of interest and receive a floating interest rate based on LIBOR. The fixed interest rates specified in the interest rate swap contracts became effective on or about January 1, 2012. The Company’s interest rate swaps qualified for cash flow hedge accounting treatment. Unrealized gains or losses were recorded in Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheets. Amounts received or paid under the contracts were recognized as interest expense over the life of the contracts. The fair value of cash flow hedges was calculated as the present value of expected future cash flows, determined on the basis of forward interest rates and present value factors. As such, the carrying amounts for these swaps were designated to be Level 2 fair values. The carrying value of these swaps is included in Other Long-Term Liabilities on the accompanying Consolidated Balance Sheet as of December 31, 2014. Derivative instruments are on the accompanying Consolidated Balance Sheet and Consolidated Statements of Income and Comprehensive Income as follows (in thousands): Fair Value at Derivative Liabilities Designated as Hedging Instruments Balance Sheet Location September 30 , 201 5 December 31, 2014 Interest Rate Swaps Other Long-Term Liabilities $ ˗ $ 235 Gain (Loss) Recognized in Location of Loss Loss Reclassified September 30 , 5 September 30 , 4 Reclassified into September 30 , 5 September 30 , 4 Interest rate swaps $ - $ 216 Interest Expense $ - $ (55 ) Gain (Loss) Recognized in Nine Months Ended Location of Loss Loss Reclassified Nine Months Ended September 30 , 5 September 30 , 4 Reclassified into September 30 , 5 September 30 , 4 Interest rate swaps $ 235 $ 587 Interest Expense $ (55 ) $ (166 )

Note 7 - Segment Information

Note 7 - Segment Information	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	7 – Segment Information The Company currently has one reportable business segment - the Truck Segment. The Truck Segment includes the Company’s operation of a network of commercial vehicle dealerships that provide an integrated one-stop source for the commercial vehicle needs of its customers, including retail sales of new and used commercial vehicles; aftermarket parts, service and body shop facilities; and a wide array of financial services, including the financing of new and used commercial vehicle purchases, insurance products and truck leasing and rentals. The commercial vehicle dealerships are deemed a single reporting unit because they have similar economic characteristics. Our chief operating decision maker considers the entire Truck Segment, not individual dealerships, when making decisions about resources to be allocated to the segment and assessing its performance. The Company also has revenues attributable to three other operating segments. These segments include a retail tire company, an insurance agency and a guest ranch operation and are included in the All Other column below. None of these segments has ever met any of the quantitative thresholds for determining reportable segments. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on income before income taxes, not including extraordinary items. The following table contains summarized information about reportable segment revenue, segment income or loss from continuing operations and segment assets for the periods ended September 30, 2015, and 2014 (in thousands): Truck Segment All Other Totals As of and for the three months ended September 30, 2015 Revenues from external customers $ 1,289,929 $ 4,147 $ 1,294,076 Segment income (loss) before taxes 33,069 (607 ) 32,462 Segment assets 2,837,256 33,234 2,870,490 For the nine months ended September 30, 2015 Revenues from external customers $ 3,806,276 $ 11,638 $ 3,817,914 Segment income (loss) before taxes 92,981 (1,169 ) 91,812 As of and for the three months ended September 30, 2014 Revenues from external customers $ 1,236,101 $ 4,921 $ 1,241,022 Segment income (loss) before taxes 38,366 (37 ) 38,329 Segment assets 2,426,368 30,244 2,456,612 For the nine months ended September 30, 2014 Revenues from external customers $ 3,368,037 $ 14,113 $ 3,382,150 Segment income (loss) before taxes 90,459 (126 ) 90,333

Note 8 - Income Taxes

Note 8 - Income Taxes	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Income Tax Disclosure [Text Block]	8 – Income Taxes The Company had unrecognized income tax benefits totaling $1.5 million as a component of accrued liabilities at September 30, 2015 and December 31, 2014, the total of which, if recognized, would impact its effective tax rate. An unfavorable settlement may require a charge to income tax expense and a favorable resolution would be recognized as a reduction to income tax expense. The Company recognizes interest accrued related to unrecognized tax benefits in income tax expense. No amounts were accrued for penalties. The Company had approximately $98,500 accrued for the payment of interest at September 30, 2015 and December 31, 2014. The Company does not anticipate a significant change in the amount of unrecognized tax benefits in the next 12 months. As of September 30, 2015, the tax years ended December 31, 2011 through 2014 remained subject to audit by federal tax authorities and the tax years ended December 31, 2010 through 2014 remained subject to audit by state tax authorities.

Note 9 - Accumulated Other Comp

Note 9 - Accumulated Other Comprehensive Income	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Comprehensive Income (Loss) Note [Text Block]	9 – Accumulated Other Comprehensive Income The following table shows the components of accumulated other comprehensive loss, net of tax, (in thousands): Three Months Ended September 30, 2015 Cash Flow Swaps Available for Sale Securities Total Balance at June 30, 2015 $ 0 $ (305 ) $ (305 ) Change in fair value 0 − − Income tax deferred 0 − − Balance at September 30, 2015 $ 0 $ (305 ) $ (305 ) Three Months Ended September 30, 2014 Cash Flow Swaps Available for Sale Securities Total Balance at June 30, 2014 $ (398 ) $ (374 ) $ (772 ) Change in fair value 216 − 216 Income tax deferred (84 ) − (84 ) Balance at September 30, 2014 $ (266 ) $ (374 ) $ (640 ) Nine Months Ended September 30, 2015 Cash Flow Swaps Available for Sale Securities Total Balance at December 31, 2014 $ (143 ) $ (317 ) $ (460 ) Change in fair value 235 19 254 Income tax deferred (92 ) (7 ) (99 ) Balance at September 30, 2015 $ − $ (305 ) $ (305 ) Nine Months Ended September 30, 2014 Cash Flow Swaps Available for Sale Securities Total Balance at December 31, 2013 $ (624 ) $ (578 ) $ (1,202 ) Change in fair value 587 334 921 Income tax deferred (229 ) (130 ) (359 ) Balance at September 30, 2014 $ (266 ) $ (374 ) $ (640 ) The following table shows the amount of loss reclassified from accumulated other comprehensive loss into earnings (in thousands): Three Months Ended Nine Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Losses on cash flow swaps to: Interest expense $ − $ (55 ) $ (55 ) $ (166 ) Income tax benefit − 21 21 65 Total reclassifications $ − $ (34 ) $ (34 ) $ (101 )

Note 10 - Acquisitions

Note 10 - Acquisitions	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Business Combination Disclosure [Text Block]	10 – Acquisitions All of the following acquisitions, unless otherwise noted, were considered business combinations accounted for under ASC 805 “Business Combinations.” Pro forma information is not included in accordance with ASC 805 since no acquisitions were considered material individually or in the aggregate. As the value of certain assets and liabilities acquired in 2015 are preliminary in nature, they are subject to adjustment as additional information is obtained about the facts and circumstances that existed at the acquisition date. The property and equipment, inventory and valuation of intangibles is subject to change during the purchase price allocation period. On September 28, 2015, in connection with the divestiture of the Company’s Peterbilt dealership in Charlotte, North Carolina, the Company acquired certain assets of Peterbilt of Las Vegas, Inc., which operated a commercial vehicle dealership in Las Vegas, Nevada. This location is operating as a Rush Truck Center and is a full-service Peterbilt dealership. The acquisition also included a PacLease commercial vehicle rental and leasing business. The dealership swap was a like-kind exchange for tax purposes and enabled the Company to be consistent with its strategy of not having dealerships representing multiple Class 8 manufacturers in the same market as the Company continues to operate a facility representing International, Hino and Isuzu trucks in Charlotte. The sale price for the assets in Charlotte, North Carolina was approximately $6.4 million, which was offset by floor plan and accounts payable of $5.9 million. The purchase price for the assets in Las Vegas, Nevada was approximately $3.4 million, which was paid in cash. The operations of Peterbilt of Las Vegas, Inc. are included in the accompanying consolidated financial statements from the date of the acquisition. The preliminary purchase price was allocated based on the fair values of the assets at the date of acquisition as follows (in thousands): Property, equipment and capital lease assets $ 16,430 Inventory 3,662 Prepaid expenses 295 Other 60 Accrued expenses (172 ) Capital lease obligations (16,925 ) Total $ 3,350 On July 27, 2015, the Company acquired certain assets of Dallas Truck Center, Inc., which included real estate and used truck inventory, in Dallas, Texas . The transaction was valued at approximately $3.3 million, with the purchase price paid in cash. Property $ 2,308 Inventory 949 Total $ 3,257

Note 11 - New Accounting Pronou

Note 11 - New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	1 1 – New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (ASU 2014-09), which replaces existing revenue recognition rules with a comprehensive revenue measurement and recognition standard and expanded disclosure requirements. ASU 2014-09 becomes effective for annual reporting periods beginning after December 15, 2017, following the July 2015 approval of a one-year deferral of the effective date by the FASB. We continue to evaluate the impact of the new standard and available adoption methods. In September 2015, the FASB issued ASU No 2015-16, “Business Combinations—Simplifying the Accounting for Measurement-Period Adjustments” (ASU 2015-16), which will result in the recognition, in current-period earnings, of any changes in provisional amounts during the measurement period after the closing of an acquisition, eliminating the requirement to retroactively account for these changes. ASU 2015-16 becomes effective January 1, 2016, subject to early adoption, and will require prospective application to adjustments to provisional amounts that occur after the effective date of ASU 2015-16. We are evaluating the impact of the new standard on our operating results.

Note 4 - Earnings Per Share (Ta

Note 4 - Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Numerator for basic and diluted earnings per share – Net income available to common shareholders $ 19,883 $ 23,478 $ 56,240 $ 55,330 Denominator– Denominator for basic earnings per share – weighted average shares outstanding 40,361 40,008 40,235 39,700 Effect of dilutive securities– Employee and director stock options and restricted share awards 775 1,083 830 1,120 Denominator for diluted earnings per share – adjusted weighted average shares outstanding and assumed conversions 41,136 41,091 41,065 40,820 Basic earnings per common share $ .49 $ .59 $ 1.40 $ 1.39 Diluted earnings per common share and common share equivalents $ .48 $ .57 $ 1.37 $ 1.36
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Three Months Ended September 30, Nine months Ended September 30, 2015 2014 2015 2014 Anti-dilutive options 1,328 395 1,139 516

Note 6 - Financial Instrument18

Note 6 - Financial Instruments and Fair Value (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Tables
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	At September 30, 2015 At December 31, 2014 Level 1 Level 2 Level 3 Level 1 Level 2 Inputs Level 3 Inputs Investment in auction rate securities $ — $ — $ 6,650 $ — $ — $ 6,905
Schedule of Available-for-sale Securities Reconciliation [Table Text Block]	C ost Basis Gross Unrealized Loss In Accumulated OCI Fair Value September 30, 2015 Investment in auction rate securities $ 7,150 $ 500 $ 6,650 December 31, 2014 Investment in auction rate securities $ 7,425 $ 520 $ 6,905
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]	Fair Value at Derivative Liabilities Designated as Hedging Instruments Balance Sheet Location September 30 , 201 5 December 31, 2014 Interest Rate Swaps Other Long-Term Liabilities $ ˗ $ 235
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]	Gain (Loss) Recognized in Location of Loss Loss Reclassified September 30 , 5 September 30 , 4 Reclassified into September 30 , 5 September 30 , 4 Interest rate swaps $ - $ 216 Interest Expense $ - $ (55 ) Gain (Loss) Recognized in Nine Months Ended Location of Loss Loss Reclassified Nine Months Ended September 30 , 5 September 30 , 4 Reclassified into September 30 , 5 September 30 , 4 Interest rate swaps $ 235 $ 587 Interest Expense $ (55 ) $ (166 )

Note 7 - Segment Information (T

Note 7 - Segment Information (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Truck Segment All Other Totals As of and for the three months ended September 30, 2015 Revenues from external customers $ 1,289,929 $ 4,147 $ 1,294,076 Segment income (loss) before taxes 33,069 (607 ) 32,462 Segment assets 2,837,256 33,234 2,870,490 For the nine months ended September 30, 2015 Revenues from external customers $ 3,806,276 $ 11,638 $ 3,817,914 Segment income (loss) before taxes 92,981 (1,169 ) 91,812 As of and for the three months ended September 30, 2014 Revenues from external customers $ 1,236,101 $ 4,921 $ 1,241,022 Segment income (loss) before taxes 38,366 (37 ) 38,329 Segment assets 2,426,368 30,244 2,456,612 For the nine months ended September 30, 2014 Revenues from external customers $ 3,368,037 $ 14,113 $ 3,382,150 Segment income (loss) before taxes 90,459 (126 ) 90,333

Note 9 - Accumulated Other Co20

Note 9 - Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2015
Reclassifications [Member]
Notes Tables
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	Three Months Ended Nine Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Losses on cash flow swaps to: Interest expense $ − $ (55 ) $ (55 ) $ (166 ) Income tax benefit − 21 21 65 Total reclassifications $ − $ (34 ) $ (34 ) $ (101 )
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	Three Months Ended September 30, 2015 Cash Flow Swaps Available for Sale Securities Total Balance at June 30, 2015 $ 0 $ (305 ) $ (305 ) Change in fair value 0 − − Income tax deferred 0 − − Balance at September 30, 2015 $ 0 $ (305 ) $ (305 ) Three Months Ended September 30, 2014 Cash Flow Swaps Available for Sale Securities Total Balance at June 30, 2014 $ (398 ) $ (374 ) $ (772 ) Change in fair value 216 − 216 Income tax deferred (84 ) − (84 ) Balance at September 30, 2014 $ (266 ) $ (374 ) $ (640 ) Nine Months Ended September 30, 2015 Cash Flow Swaps Available for Sale Securities Total Balance at December 31, 2014 $ (143 ) $ (317 ) $ (460 ) Change in fair value 235 19 254 Income tax deferred (92 ) (7 ) (99 ) Balance at September 30, 2015 $ − $ (305 ) $ (305 ) Nine Months Ended September 30, 2014 Cash Flow Swaps Available for Sale Securities Total Balance at December 31, 2013 $ (624 ) $ (578 ) $ (1,202 ) Change in fair value 587 334 921 Income tax deferred (229 ) (130 ) (359 ) Balance at September 30, 2014 $ (266 ) $ (374 ) $ (640 )

Note 10 - Acquisitions (Tables)

Note 10 - Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2015
Dallas Truck Center, Inc. [Member]
Notes Tables
Schedule of Business Acquisitions, by Acquisition [Table Text Block]	Property $ 2,308 Inventory 949 Total $ 3,257
Schedule of Business Acquisitions, by Acquisition [Table Text Block]	Property, equipment and capital lease assets $ 16,430 Inventory 3,662 Prepaid expenses 295 Other 60 Accrued expenses (172 ) Capital lease obligations (16,925 ) Total $ 3,350

Note 2 - Other Assets (Details

Note 2 - Other Assets (Details Textual) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Computer Software, Intangible Asset [Member]
Amortization of Intangible Assets	$ 800,000		$ 800,000	$ 2,500,000	$ 2,400,000
Finite-Lived Intangible Asset, Useful Life				15 years
Finite-Lived Intangible Assets, Amortization Expense, Year Two	3,300,000			$ 3,300,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	3,300,000			3,300,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	3,300,000			3,300,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	3,300,000			3,300,000
Goodwill and Intangible Asset Impairment		$ 0
Capitalized Computer Software, Net	36,500,000	38,500,000		36,500,000
Capitalized Computer Software, Accumulated Amortization	12,600,000	10,300,000		12,600,000
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	3,300,000			3,300,000
Indefinite-Lived Franchise Rights	$ 7,900,000	$ 7,000,000		$ 7,900,000

Note 4 - Earnings Per Share Cal

Note 4 - Earnings Per Share Calculation (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator for basic and diluted earnings per share – Net income available to common shareholders	$ 19,883	$ 23,478	$ 56,240	$ 55,330
Denominator for basic earnings per share – weighted average shares outstanding (in shares)	40,361	40,008	40,235	39,700
Effect of dilutive securities– Employee and director stock options and restricted share awards (in shares)	775	1,083	830	1,120
Denominator for diluted earnings per share – adjusted weighted average shares outstanding and assumed conversions (in shares)	41,136	41,091	41,065	40,820
Basic earnings per common share (in dollars per share)	$ 0.49	$ 0.59	$ 1.40	$ 1.39
Diluted earnings per common share and common share equivalents (in dollars per share)	$ 0.48	$ 0.57	$ 1.37	$ 1.36

Note 4 - Anti-dilutive Securiti

Note 4 - Anti-dilutive Securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Employee Stock Option [Member]
Anti-dilutive options (in shares)	1,328	395	1,139	516

Note 5 - Stock Options and Re25

Note 5 - Stock Options and Restricted Stock Awards (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Selling, General and Administrative Expenses [Member]
Allocated Share-based Compensation Expense	$ 2.7	$ 2	$ 9.9	$ 9.1
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 18.8		$ 18.8
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 255 days

Note 6 - Financial Instrument26

Note 6 - Financial Instruments and Fair Value (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2011	Sep. 30, 2015
Auction Rate Securities [Member]
Available-for-sale Securities		$ 6,905,000		$ 6,650,000
Available-for-sale Securities, Amortized Cost Basis		7,425,000		$ 7,150,000
Available-for-sale Securities, Sold at Par	$ 275,000
Derivative, Basis Spread on Variable Rate				2.25%
Asset Impairment Charges			$ 1,000,000
Available-for-sale Debt Securities Gross Unrealized Gain		$ 427,000

Note 6 - Investment in Auction

Note 6 - Investment in Auction Rate Securities - Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
Available-for-sale Securities
Fair Value, Inputs, Level 2 [Member]
Available-for-sale Securities
Fair Value, Inputs, Level 3 [Member]
Available-for-sale Securities	$ 6,650	$ 6,905

Note 6 - Investment in Auctio28

Note 6 - Investment in Auction Rate Securities (Details) - Auction Rate Securities [Member] - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Available-for-sale Securities, Amortized Cost Basis	$ 7,150	$ 7,425
Gross unrealized loss in accumulated OCI	500	520
Available-for-sale Securities	$ 6,650	$ 6,905

Note 6 - Fair Values of Derivat

Note 6 - Fair Values of Derivative Instruments (Details) $ in Thousands	Dec. 31, 2014USD ($)
Other Liabilities [Member]
Interest Rate Swaps	$ 235

Note 6 - Pre-tax Effect of Inte

Note 6 - Pre-tax Effect of Interest Rate Swaps (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest Expense [Member]
Interest rate swaps		$ (55)	$ (55)	$ (166)
Interest rate swaps		216	235	587
Interest rate swaps		$ (34)	$ (34)	$ (101)

Note 7 - Segment Information (D

Note 7 - Segment Information (Details Textual)	9 Months Ended
	Sep. 30, 2015
Number of Reportable Segments	1
Number of Operating Segments	3

Note 7 - Segment Reporting Info

Note 7 - Segment Reporting Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Truck Segment [Member]
Revenues from external customers	$ 1,289,929,000	$ 1,236,101,000	$ 3,806,276,000	$ 3,368,037,000
Segment income (loss) before taxes	33,069,000	38,366,000	92,981,000	90,459,000
Segment assets	2,837,256,000	2,426,368,000	2,837,256,000	2,426,368,000
Other Segments [Member]
Revenues from external customers	4,147,000	4,921,000	11,638,000	14,113,000
Segment income (loss) before taxes	(607,000)	(37,000)	(1,169,000)	(126,000)
Segment assets	33,234,000	30,244,000	33,234,000	30,244,000
Revenues from external customers	1,294,076,000	1,241,022,000	3,817,914,000	3,382,150,000
Segment income (loss) before taxes	32,462,000	38,329,000	91,812,000	90,333,000
Segment assets	$ 2,870,490,000	$ 2,456,612,000	$ 2,870,490,000	$ 2,456,612,000

Note 8 - Income Taxes (Details

Note 8 - Income Taxes (Details Textual) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 1,500,000	$ 1,500,000
Unrecognized Tax Benefits, Interest on Income Taxes Expense	98,500	98,500
Unrecognized Tax Benefits, Income Tax Penalties Accrued	$ 0	$ 0

Note 9 - Accumulated Other Co34

Note 9 - Accumulated Other Comprehensive (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Balance, cash flow swaps		$ (398)	$ (143)	$ (624)
Balance, available for sale securities	$ (305)	(374)	(317)	(578)
Balance	$ (305)	(772)	(460)	(1,202)
Change in fair value, cash flow swaps		$ 216	235	587
Change in fair value, available for sale securities			19	334
Change in fair value		$ 216	254	921
Income tax deferred, cash flow swaps		$ (84)	(92)	(229)
Income tax deferred, available for sale securities			(7)	(130)
Income tax deferred		$ (84)	$ (99)	(359)
Balance, cash flow swaps		(266)		(266)
Balance, available for sale securities	$ (305)	(374)	$ (305)	(374)
Balance	$ (305)	$ (640)	$ (305)	$ (640)

Note 9 - Loss Reclassified from

Note 9 - Loss Reclassified from Accumulated Other Comprehensive (Loss) into Earnings (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest Expense [Member]
Interest rate swaps	$ (55)	$ (55)	$ (166)
Interest rate swaps	(34)	(34)	(101)
Income tax benefit	$ 21	$ 21	$ 65

Note 10 - Acquisitions (Details

Note 10 - Acquisitions (Details Textual) - USD ($) $ in Thousands	Sep. 28, 2015	Jul. 27, 2015	Sep. 30, 2015	Sep. 30, 2014
Peterbilt Dealership in Charlotte, North Carolina [Member]
Disposal Group, Including Discontinued Operation, Assets	$ 6,400
Disposal Group, Including Discontinued Operation, Liabilities	5,900
Peterbilt of Las Vegas, Inc. [Member]
Payments to Acquire Businesses, Gross	$ 3,400
Dallas Truck Center, Inc. [Member]
Payments to Acquire Businesses, Gross		$ 3,300
Payments to Acquire Businesses, Gross			$ 65,116	$ 147,758

Note 10 - Purchase Price Alloca

Note 10 - Purchase Price Allocation (Details) - Peterbilt of Las Vegas, Inc. [Member] $ in Thousands	Sep. 28, 2015USD ($)
Property, equipment and capital lease assets	$ 16,430
Inventory	3,662
Prepaid expenses	295
Other	60
Accrued expenses	(172)
Capital lease obligations	(16,925)
Total	$ 3,350

Note 10 - Purchase Price Allo38

Note 10 - Purchase Price Allocation, Dallas Truck Center (Details) - Dallas Truck Center, Inc. [Member] $ in Thousands	Jul. 27, 2015USD ($)
Property, equipment and capital lease assets	$ 2,308
Inventory	949
Total	$ 3,257