Rush Enterprises (RUSHA) 10-Q 8 Nov 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 03, 2016
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		29,877,905
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		9,491,137
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, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 91,698	$ 64,847
Accounts receivable, net	147,516	156,977
Note receivable affiliate	11,512	10,611
Inventories, net	911,669	1,061,198
Prepaid expenses and other	8,790	32,953
Assets held for sale	15,676
Total current assets	1,186,861	1,326,586
Investments	6,231	6,650
Property and equipment, net	1,152,320	1,172,824
Goodwill, net	290,191	285,041
Other assets, net	59,892	60,907
Total assets	2,695,495	2,852,008
Current liabilities:
Floor plan notes payable	711,906	854,758
Current maturities of long-term debt	132,671	151,024
Current maturities of capital lease obligations	14,409	14,691
Liabilities directly associated with assets held for sale	1,163
Trade accounts payable	109,957	120,255
Customer deposits	15,878	22,438
Accrued expenses	90,462	83,871
Total current liabilities	1,076,446	1,247,037
Long-term debt, net of current maturities	494,550	496,731
Capital lease obligations, net of current maturities	71,979	69,074
Other long-term liabilities	6,996	5,282
Deferred income taxes, net	192,354	188,987
Shareholders’ equity:
Preferred stock, par value $.01 per share; 1,000,000 shares authorized; 0 shares outstanding in 2016 and 2015
Common stock, par value $.01 per share; 60,000,000 class A shares and 20,000,000 class B shares authorized; 29,780,999 class A shares and 9,621,714 class B shares outstanding in 2016; and 30,303,818 class A shares and 10,093,305 class B shares outstanding in 2015	436	430
Additional paid-in capital	301,732	288,294
Treasury stock, at cost: 934,171 class A shares and 3,274,224 class B shares in 2016; and 2,616,657 class B shares in 2015	(76,650)	(43,368)
Retained earnings	627,938	599,846
Accumulated other comprehensive loss, net of tax	(286)	(305)
Total shareholders’ equity	853,170	844,897
Total liabilities and shareholders’ equity	$ 2,695,495	$ 2,852,008

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Common Class A [Member]
Common stock, shares authorized (in shares)	60,000,000	60,000,000
Common stock, shares outstanding (in shares)	29,780,999	30,303,818
Treasury stock, shares (in shares)	934,171
Common Class B [Member]
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares outstanding (in shares)	9,621,714	10,093,305
Treasury stock, shares (in shares)	3,274,224	2,616,657
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, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues:
New and used commercial vehicle sales	$ 698,838	$ 872,106	$ 2,004,236	$ 2,590,178
Parts and service sales	336,459	360,711	1,007,063	1,051,001
Lease and rental	52,452	50,545	155,491	147,634
Finance and insurance	4,870	6,164	14,206	16,373
Other	3,422	4,550	12,347	12,728
Total revenue	1,096,041	1,294,076	3,193,343	3,817,914
Cost of products sold:
New and used commercial vehicle sales	653,992	813,178	1,868,983	2,413,712
Parts and service sales	214,916	227,775	642,678	664,697
Lease and rental	45,817	45,115	136,618	130,242
Total cost of products sold	914,725	1,086,068	2,648,279	3,208,651
Gross profit	181,316	208,008	545,064	609,263
Selling, general and administrative expense	142,280	160,776	450,812	474,712
Depreciation and amortization expense	13,014	11,228	38,482	32,051
Gain (loss) on sale of assets	1,566	26	1,571	(581)
Operating income	27,588	36,030	57,341	101,919
Interest expense, net	3,285	3,568	11,287	10,107
Income before taxes	24,303	32,462	46,054	91,812
Provision for income taxes	9,423	12,579	17,962	35,572
Net income	$ 14,880	$ 19,883	$ 28,092	$ 56,240
Earnings per common share:
Basic (in dollars per share)	$ 0.38	$ 0.49	$ 0.70	$ 1.40
Diluted (in dollars per share)	$ 0.37	$ 0.48	$ 0.69	$ 1.37
Weighted average shares outstanding:
Basic (in shares)	39,617	40,361	40,138	40,235
Diluted (in shares)	40,274	41,136	40,698	41,065
Comprehensive income	$ 14,889	$ 19,883	$ 28,111	$ 56,395

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income	$ 28,092,000	$ 56,240,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	118,149,000	106,506,000
Loss (gain) on sale of property and equipment	(1,571,000)	581,000
Asset Impairment Charges	8,247,000
Stock-based compensation expense related to stock options and employee stock purchases	9,426,000	9,889,000
Deferred income tax expense (benefit)	3,355,000	(4,097,000)
Excess tax expense from stock-based compensation	808,000	345,000
Change in accounts receivable, net	8,560,000	(39,054,000)
Change in inventories, net	199,228,000	(47,482,000)
Change in prepaid expenses and other, net	24,163,000	19,964,000
Change in trade accounts payable	(10,298,000)	27,187,000
Payments on floor plan notes payable – trade, net	(623,000)	(13,690,000)
Change in customer deposits	(6,560,000)	(23,336,000)
Change in accrued expenses	5,783,000	6,413,000
Net cash provided by operating activities	386,759,000	99,466,000
Cash flows from investing activities:
Acquisition of property and equipment	(159,546,000)	(250,211,000)
Proceeds from the sale of property and equipment	9,427,000	2,950,000
Business acquisitions	(681,000)	(65,116,000)
Proceeds from the sale of available for sale securities	450,000	275,000
Change in other assets	(4,520,000)	(3,302,000)
Net cash used in investing activities	(154,870,000)	(315,404,000)
Cash flows from financing activities:
(Payments) draws on floor plan notes payable – non-trade, net	(142,229,000)	95,055,000
Proceeds from long-term debt	103,248,000	115,169,000
Principal payments on long-term debt	(122,619,000)	(111,821,000)
Principal payments on capital lease obligations	(14,174,000)	(10,567,000)
Proceeds from issuance of shares relating to employee stock options and employee stock purchases	4,826,000	3,366,000
Excess tax benefit (expense) from stock-based compensation	(808,000)	(345,000)
Common stock repurchased	(33,282,000)	(1,464,000)
Net cash (used in) provided by financing activities	(205,038,000)	89,393,000
Net increase (decrease) in cash and cash equivalents	26,851,000	(126,545,000)
Cash and cash equivalents, beginning of period	64,847,000	191,463,000
Cash and cash equivalents, end of period	91,698,000	64,918,000
Cash paid during the period for:
Interest	29,172,000	26,261,000
Income taxes, net of refunds	(12,993,000)	12,131,000
Noncash investing activities:
Assets acquired under capital leases	$ 16,797,000	$ 31,317,000

Note 1 - Principles of Consolid

Note 1 - Principles of Consolidation and Basis of Presentation	9 Months Ended
	Sep. 30, 2016
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 the Company’s management, are necessary for a fair presentation of its 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. 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, 2016
Notes to Financial Statements
Other Assets Disclosure [Text Block]	2 –Other Assets The total capitalized costs of the SAP enterprise software and SAP dealership management system of $33.8 million, including capitalized interest, are recorded on the Consolidated Balance Sheet in Other Assets, net of accumulated amortization of $16.0 million. 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 $0.9 million for the three months ended September 30, 2016, $0.8 million for the three months ended September 30, 2015, and $2.5 million for both the nine months ended September 30, 2016 and the nine months ended September 30, 2015. The Company estimates that amortization expense relating to the SAP software will be approximately $3.4 million for each of the next five years. The Company’s only significant identifiable intangible assets, other than goodwill, are rights under franchise agreements with manufacturers. The fair value of the franchise right is determined at the acquisition date by discounting the projected cash flows specific to each acquisition. The carrying value of the Company’s manufacturer franchise rights was $7.0 million at September 30, 2016, and $7.9 million at December 31, 2015, 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 evaluating and including all locations acquired in 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 any period presented. The Company cannot predict the occurrence of certain events that might adversely affect the reported value of manufacturer franchise rights in the future.

Note 3 - Commitments and Contin

Note 3 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
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 the Company’s 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 the Company’s 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, 2016
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, 2016 2015 2016 2015 Numerator: Numerator for basic and diluted earnings per share – Net income available to common shareholders $ 14,880 $ 19,883 $ 28,092 $ 56,240 Denominator: Denominator for basic earnings per share – weighted average shares outstanding 39,617 40,361 40,138 40,235 Effect of dilutive securities– Employee and director stock options and restricted share awards 657 775 560 830 Denominator for diluted earnings per share – adjusted weighted average shares outstanding and assumed conversions 40,274 41,136 40,698 41,065 Basic earnings per common share $ .38 $ .49 $ .70 $ 1.40 Diluted earnings per common share and common share equivalents $ .37 $ .48 $ .69 $ 1.37 Options to purchase shares of common stock that were outstanding for the three months and nine months ended September 30, 2016 and 2015 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, 2016 2015 2016 2015 Anti-dilutive options – weighted average 2,287 1,328 2,444 1,139

Note 5 - Stock Options and Rest

Note 5 - Stock Options and Restricted Stock Awards	9 Months Ended
	Sep. 30, 2016
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 our employees and directors, including employee stock options, 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 both the three months ended September 30, 2016 and September 30, 2015. Stock-based compensation expense, included in selling, general and administrative expense, for the nine months ended September 30, 2016, was $9.4 million and for the nine months ended September 30, 2015, was $9.9 million. As of September 30, 2016 , there was $16.0 million of total unrecognized compensation expense related to non-vested, share-based compensation arrangements to be recognized over a weighted-average period of 2.3 years.

Note 6 - Financial Instruments

Note 6 - Financial Instruments and Fair Value	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Fair Value Disclosures [Text Block]	6 – Financial Instruments and Fair Value The Company has various financial instruments that it must measure at fair value on a recurring basis. The Company also applies the provisions of fair value measurement to various nonrecurring measurements for its financial and nonfinancial assets and liabilities. Applicable accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The Company measures its assets and liabilities using inputs from the following three levels of the fair value hierarchy: Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3 includes unobservable inputs that reflect the Company’s assumptions about what factors market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available, including its own data. Financial instruments consist primarily of cash, accounts receivable, accounts payable and floor plan notes payable. The carrying values of the Company’s financial instruments approximate fair value due either to their short-term nature or 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, 2016, and December 31, 2015. 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 its 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. As of September 30, 2016, the Company held auction rate securities with underlying tax-exempt municipal bonds that mature in 2030 and have a fair value of $6.2 million and a cost basis of $6.7 million. As of December 31, 2015, the Company held auction rate securities with underlying tax-exempt municipal bonds that mature in 2030 and have a fair value of $6.7 million and a cost basis of $7.2 million. The issuer redeemed $150,000 of the auction rate securities during the second quarter of 2014, $275,000 during the second quarter of 2015, $250,000 during the second quarter of 2016, and $200,000 during the third quarter of 2016. 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, 2016 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 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, 2016 At December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Inputs Level 3 Inputs Investment in auction rate securities $ − $ − $ 6,231 $ − $ − $ 6,650 C ost Basis Amount Gross Unrealized Loss In Accumulated OCI Fair Value September 30, 2016 Investment in auction rate securities $ 6,700 $ 469 $ 6,231 December 31, 2015 Investment in auction rate securities $ 7,150 $ 500 $ 6,650 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. These swap contracts were designated as cash flow hedges that expired on July 1, 2015. The Company does not currently have any interest rate swap contracts. Long-Lived Assets During the first quarter of 2016, the Company instituted plans to consolidate its dealership network. The Company recorded an impairment charge related to the value of the real estate in the affected locations in the amount of $7.5 million for the nine months ended September 30, 2016. The Company also classified certain excess real estate as held for sale, which resulted in an additional impairment charge. The fair value measurements for the Company’s long-lived assets are based on Level 3 inputs. Fair values were based on evaluations by a third-party real estate broker that utilized its knowledge and historical experience in real estate markets and transactions. During the quarter ended September 30, 2016, the Company sold two properties with a cost basis of $4.4 million. The Company is actively marketing the remaining real estate held for sale. The following table presents long-lived assets measured and recorded at fair value on a nonrecurring basis (in thousands): Description Fair Value Measurements Using Significant Unobservable Inputs September 30, 2016 Loss during the Three Months Ended September 30, 2016 Loss during the Nine Months Ended September 30, 2016 Long-lived assets held for sale $ 15,676 $ − $ (7,481 ) For further discussion of assets held for sale, see Note 10 – Restructuring Costs of the Notes to Consolidated Financial Statements. For the nine months ended September 30, 2016, the loss was reported in selling, general and administrative expenses in the Consolidated Statements of Income and Comprehensive Income and was reported under the Truck Segment.

Note 7 - Segment Information

Note 7 - Segment Information	9 Months Ended
	Sep. 30, 2016
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. The Company’s 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. 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, 2016, and 2015 (in thousands): Truck Segment All Other Totals As of and for the three months ended September 30, 2016 Revenues from external customers $ 1,092,005 $ 4,036 $ 1,096,041 Segment income (loss) before taxes 24,505 (202 ) 24,303 Segment assets 2,662,872 32,623 2,695,495 For the nine months ended September 30, 2016 Revenues from external customers $ 3,181,842 $ 11,501 $ 3,193,343 Segment income (loss) before taxes 46,740 (686 ) 46,054 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

Note 8 - Income Taxes

Note 8 - Income Taxes	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	8 – Income Taxes The Company had unrecognized income tax benefits totaling $2.3 million as a component of accrued liabilities at September 30, 2016 and December 31, 2015, 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 $110,100 accrued for the payment of interest at September 30, 2016 and December 31, 2015. The Company does not anticipate a significant change in the amount of unrecognized tax benefits in the next 12 months. As of September 30, 2016, the tax years ended December 31, 2012 through 2015 remained subject to audit by federal tax authorities and the tax years ended December 31, 2011 through 2015, remained subject to audit by state tax authorities.

Note 9 - Accumulated Other Comp

Note 9 - Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Comprehensive Income (Loss) Note [Text Block]	9 – Accumulated Other Comprehensive Income (Loss) The following table shows the components of accumulated other comprehensive loss, net of tax, (in thousands): Three Months Ended September 30, 2016 Cash Flow Swaps Available for Sale Securities Total Balance at June 30, 2016 $ − $ (295 ) $ (295 ) Change in fair value − 14 14 Income tax deferred − (5 ) (5 ) Balance at September 30, 2016 $ − $ (286 ) $ (286 ) Three Months Ended September 30, 2015 Cash Flow Swaps Available for Sale Securities Total Balance at June 30, 2015 $ − $ (305 ) $ (305 ) Change in fair value − − − Income tax deferred − − − Balance at September 30, 2015 $ − $ (305 ) $ (305 ) Nine Months Ended September 30, 2016 Cash Flow Swaps Available for Sale Securities Total Balance at December 31, 2015 $ − $ (305 ) $ (305 ) Change in fair value − 32 32 Income tax deferred − (13 ) (13 ) Balance at September 30, 2016 $ − $ (286 ) $ (286 ) 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 ) 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, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Losses on cash flow swaps to: Interest expense $ − $ − $ − $ (55 ) Income tax benefit − − − 21 Total reclassifications $ − $ − $ − $ (34 )

Note 10 - Restructuring Costs

Note 10 - Restructuring Costs	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Restructuring and Related Activities Disclosure [Text Block]	10 – Restructuring Costs The restructuring costs included $3.2 million associated with impairment charges to certain fixed assets and the value of the real estate underlying the affected locations, which was reported in selling, general and administrative expenses in the Consolidated Statements of Income and Comprehensive Income. See Note 6 – Financial Instruments and Fair Value, for further discussion on the impairment charge related to the value of real estate in the affected locations. The restructuring costs also included $0.7 million associated with severance benefits for the reduction of approximately 100 employees, lease cancellation fees and contract termination costs that were reported as selling, general and administrative expenses in the Consolidated Statements of Income and Comprehensive Income. During the quarter ended September 30, 2016, the Company sold two of the properties with a cost basis of $4.4 million. As of September 30, 2016, the remaining real estate associated with the restructuring activities and owned by the Company and the Company’s excess real estate is included in assets held for sale on the Consolidated Balance Sheets. The restructuring costs and the assets held for sale are reported under the Truck Segment.

Note 11 - New Accounting Pronou

Note 11 - New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	1 1 – New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-09, “ Compensation – Stock Compensation (Topic 718), ” In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “ Leases (Topic 842), ” In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606) ,”

Note 4 - Earnings Per Share (Ta

Note 4 - Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator: Numerator for basic and diluted earnings per share – Net income available to common shareholders $ 14,880 $ 19,883 $ 28,092 $ 56,240 Denominator: Denominator for basic earnings per share – weighted average shares outstanding 39,617 40,361 40,138 40,235 Effect of dilutive securities– Employee and director stock options and restricted share awards 657 775 560 830 Denominator for diluted earnings per share – adjusted weighted average shares outstanding and assumed conversions 40,274 41,136 40,698 41,065 Basic earnings per common share $ .38 $ .49 $ .70 $ 1.40 Diluted earnings per common share and common share equivalents $ .37 $ .48 $ .69 $ 1.37
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Anti-dilutive options – weighted average 2,287 1,328 2,444 1,139

Note 6 - Financial Instrument18

Note 6 - Financial Instruments and Fair Value (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	At September 30, 2016 At December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Inputs Level 3 Inputs Investment in auction rate securities $ − $ − $ 6,231 $ − $ − $ 6,650
Schedule of Available-for-sale Securities Reconciliation [Table Text Block]	C ost Basis Amount Gross Unrealized Loss In Accumulated OCI Fair Value September 30, 2016 Investment in auction rate securities $ 6,700 $ 469 $ 6,231 December 31, 2015 Investment in auction rate securities $ 7,150 $ 500 $ 6,650
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]	Description Fair Value Measurements Using Significant Unobservable Inputs September 30, 2016 Loss during the Three Months Ended September 30, 2016 Loss during the Nine Months Ended September 30, 2016 Long-lived assets held for sale $ 15,676 $ − $ (7,481 )

Note 7 - Segment Information (T

Note 7 - Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2016 Revenues from external customers $ 1,092,005 $ 4,036 $ 1,096,041 Segment income (loss) before taxes 24,505 (202 ) 24,303 Segment assets 2,662,872 32,623 2,695,495 For the nine months ended September 30, 2016 Revenues from external customers $ 3,181,842 $ 11,501 $ 3,193,343 Segment income (loss) before taxes 46,740 (686 ) 46,054 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

Note 9 - Accumulated Other Co20

Note 9 - Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2016
Reclassifications [Member]
Notes Tables
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Losses on cash flow swaps to: Interest expense $ − $ − $ − $ (55 ) Income tax benefit − − − 21 Total reclassifications $ − $ − $ − $ (34 )
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	Three Months Ended September 30, 2016 Cash Flow Swaps Available for Sale Securities Total Balance at June 30, 2016 $ − $ (295 ) $ (295 ) Change in fair value − 14 14 Income tax deferred − (5 ) (5 ) Balance at September 30, 2016 $ − $ (286 ) $ (286 ) Three Months Ended September 30, 2015 Cash Flow Swaps Available for Sale Securities Total Balance at June 30, 2015 $ − $ (305 ) $ (305 ) Change in fair value − − − Income tax deferred − − − Balance at September 30, 2015 $ − $ (305 ) $ (305 ) Nine Months Ended September 30, 2016 Cash Flow Swaps Available for Sale Securities Total Balance at December 31, 2015 $ − $ (305 ) $ (305 ) Change in fair value − 32 32 Income tax deferred − (13 ) (13 ) Balance at September 30, 2016 $ − $ (286 ) $ (286 ) 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 )

Note 2 - Other Assets (Details

Note 2 - Other Assets (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Depreciation and Amortization [Member] | Computer Software, Intangible Asset [Member]
Amortization of Intangible Assets	$ 900,000	$ 800,000	$ 2,500,000	$ 2,500,000
Computer Software, Intangible Asset [Member]
Finite-Lived Intangible Asset, Useful Life			15 years
Other Assets [Member]
Capitalized Computer Software, Net	33,800,000		$ 33,800,000
Indefinite-Lived Franchise Rights	7,000,000		7,000,000		$ 7,900,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	3,400,000		3,400,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	3,400,000		3,400,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	3,400,000		3,400,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	3,400,000		3,400,000
Goodwill and Intangible Asset Impairment	0	$ 0	0	$ 0	$ 0
Capitalized Computer Software, Accumulated Amortization	16,000,000		16,000,000
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 3,400,000		$ 3,400,000

Note 4 - Earnings Per Share - E

Note 4 - Earnings Per Share - Earnings Per Share Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Numerator for basic and diluted earnings per share – Net income available to common shareholders	$ 14,880	$ 19,883	$ 28,092	$ 56,240
Basic (in shares)	39,617	40,361	40,138	40,235
Employee and director stock options and restricted share awards (in shares)	657	775	560	830
Denominator for diluted earnings per share – adjusted weighted average shares outstanding and assumed conversions (in shares)	40,274	41,136	40,698	41,065
Basic earnings per common share (in dollars per share)	$ 0.38	$ 0.49	$ 0.70	$ 1.40
Diluted earnings per common share and common share equivalents (in dollars per share)	$ 0.37	$ 0.48	$ 0.69	$ 1.37

Note 4 - Earnings Per Share - A

Note 4 - Earnings Per Share - Anti-dilutive Securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Anti-dilutive options – weighted average (in shares)	2,287	1,328	2,444	1,139

Note 5 - Stock Options and Re24

Note 5 - Stock Options and Restricted Stock Awards (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Selling, General and Administrative Expenses [Member]
Allocated Share-based Compensation Expense	$ 2.7	$ 2.7	$ 9.4	$ 9.9
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 16		$ 16
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 109 days

Note 6 - Financial Instrument25

Note 6 - Financial Instruments and Fair Value (Details Textual)	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2011USD ($)	Dec. 31, 2015USD ($)
Auction Rate Securities [Member]
Available-for-sale Securities	$ 6,231,000				$ 6,231,000				$ 6,650,000
Available-for-sale Securities, Amortized Cost Basis	6,700,000				$ 6,700,000				$ 7,150,000
Auction Rate Securities Redeemed	$ 200,000	$ 250,000	$ 275,000	$ 150,000
Derivative, Basis Spread on Variable Rate	2.25%				2.25%
Asset Impairment Charges					$ 8,247,000			$ 1,000,000
Available-for-sale Debt Securities Gross Unrealized Gain							$ 427,000
Impairment of Real Estate					$ 7,500,000
Number of Properties Sold	2
Real Estate Sold, Cost Basis	$ 4,400,000

Note 6 - Financial Instrument26

Note 6 - Financial Instruments and Fair Value - Investment in Auction Rate Securities - Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Inputs, Level 3 [Member]
Fair value	$ 6,231	$ 6,650

Note 6 - Financial Instrument27

Note 6 - Financial Instruments and Fair Value - Investment in Auction Rate Securities (Details) - Auction Rate Securities [Member] - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Cost basis amount	$ 6,700,000	$ 7,150,000
Gross unrealized loss in accumulated OCI	469,000	500,000
Fair value	$ 6,231,000	$ 6,650,000

Note 6 - Financial Instrument28

Note 6 - Financial Instruments and Fair Value - Pre-tax Effect of Interest Rate Swaps (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2016USD ($)
Long-lived assets held for sale, Fair value	$ 15,676
Long-lived assets held for sale, Gain (Loss) Included in Earnings	$ (7,481)

Note 7 - Segment Information (D

Note 7 - Segment Information (Details Textual)	9 Months Ended
	Sep. 30, 2016
Number of Reportable Segments	1
Number of Operating Segments	3

Note 7 - Segment Information -

Note 7 - Segment Information - Segment Reporting Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Truck Segment [Member]
Revenues from external customers	$ 1,092,005	$ 1,289,929	$ 3,181,842	$ 3,806,276
Segment income (loss) before taxes	24,505	33,069	46,740	92,981
Segment assets	2,662,872	2,837,256	2,662,872	2,837,256
Other Segments [Member]
Revenues from external customers	4,036	4,147	11,501	11,638
Segment income (loss) before taxes	(202)	(607)	(686)	(1,169)
Segment assets	32,623	33,234	32,623	33,234
Revenues from external customers	1,096,041	1,294,076	3,193,343	3,817,914
Segment income (loss) before taxes	24,303	32,462	46,054	91,812
Segment assets	$ 2,695,495	$ 2,870,490	$ 2,695,495	$ 2,870,490	$ 2,852,008

Note 8 - Income Taxes (Details

Note 8 - Income Taxes (Details Textual) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Domestic Tax Authority [Member] | Earliest Tax Year [Member]
Open Tax Year	2,012
Domestic Tax Authority [Member] | Latest Tax Year [Member]
Open Tax Year	2,015
State and Local Jurisdiction [Member] | Earliest Tax Year [Member]
Open Tax Year	2,011
State and Local Jurisdiction [Member] | Latest Tax Year [Member]
Open Tax Year	2,015
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 2,300,000	$ 2,300,000
Unrecognized Tax Benefits, Income Tax Penalties Accrued	0	0
Unrecognized Tax Benefits, Interest on Income Taxes Expense	$ 110,100	$ 110,100

Note 9 - Accumulated Other Co32

Note 9 - Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Balance, available for sale securities	$ (295)	$ (305)	$ (305)	$ (317)
Balance	(295)	(305)	(305)	(460)
Change in fair value, available for sale securities	14		32	19
Change in fair value	14		32	254
Income tax deferred, available for sale securities	(5)		(13)	(7)
Income tax deferred	(5)		(13)	(99)
Balance, available for sale securities	(286)	(305)	(286)	(305)
Balance	$ (286)	(305)	$ (286)	(305)
Balance, cash flow swaps				(143)
Change in fair value, cash flow swaps				235
Income tax deferred, cash flow swaps				(92)
Balance, cash flow swaps

Note 9 - Accumulated Other Co33

Note 9 - Accumulated Other Comprehensive Income (Loss) - Loss Reclassified from Accumulated Other Comprehensive Income (Loss) into Earnings (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2016USD ($)
Losses on cash flow swaps to:
Interest expense	$ (55)
Income tax benefit	21
Total reclassifications	$ (34)

Note 10 - Restructuring Costs (

Note 10 - Restructuring Costs (Details Textual)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2011USD ($)
Operating Segments [Member] | Selling, General and Administrative Expenses [Member]
Asset Impairment Charges		$ 3,200,000
Severance Costs		700,000
Impairment of Real Estate		5,000,000
Operating Segments [Member]
Restructuring and Related Cost, Incurred Cost		$ 9,000,000
Restructuring and Related Cost, Number of Positions Eliminated		100
Asset Impairment Charges		$ 8,247,000		$ 1,000,000
Impairment of Real Estate		$ 7,500,000
Number of Properties Sold	2
Real Estate Sold, Cost Basis	$ 4,400,000