Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 06, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 000-23189 | |
Entity Registrant Name | C.H. ROBINSON WORLDWIDE, INC. | |
Entity Central Index Key | 0001043277 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 41-1883630 | |
Entity Address, Address Line One | 14701 Charlson Road | |
Entity Address, City or Town | Eden Prairie | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55347 | |
City Area Code | 952 | |
Local Phone Number | 937-8500 | |
Title of 12(b) Security | Common Stock, $0.10 par value | |
Trading Symbol | CHRW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 135,377,884 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 355,307 | $ 378,615 |
Receivables, net of allowance for doubtful accounts of $39,175 and $41,131 | 2,100,246 | 2,162,438 |
Contract assets | 179,015 | 159,635 |
Prepaid expenses and other | 72,005 | 52,386 |
Total current assets | 2,706,573 | 2,753,074 |
Property and equipment, net | 222,390 | 228,301 |
Goodwill | 1,291,715 | 1,258,922 |
Other intangible assets, net | 110,869 | 108,822 |
Right-of-use lease assets | 262,355 | |
Deferred tax assets | 12,957 | 9,993 |
Other assets | 77,250 | 68,300 |
Total assets | 4,684,109 | 4,427,412 |
Current liabilities: | ||
Accounts payable | 1,064,432 | 971,023 |
Outstanding checks | 58,213 | 92,084 |
Accrued expenses: | ||
Compensation | 92,676 | 153,626 |
Transportation expense | 138,970 | 119,820 |
Income taxes | 25,309 | 28,360 |
Other accrued liabilities | 61,948 | 63,410 |
Current lease liabilities | 54,792 | |
Current portion of debt | 0 | 5,000 |
Total current liabilities | 1,496,340 | 1,433,323 |
Long-term debt | 1,253,849 | 1,341,352 |
Noncurrent lease liabilities | 215,830 | |
Noncurrent income taxes payable | 22,063 | 21,463 |
Deferred tax liabilities | 36,344 | 35,757 |
Other long-term liabilities | 372 | 430 |
Total liabilities | 3,024,798 | 2,832,325 |
Stockholders’ investment: | ||
Preferred stock, $0.10 par value, 20,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.10 par value, 480,000 shares authorized; 179,423 and 179,400 shares issued, 135,731 and 137,284 outstanding | 13,573 | 13,728 |
Additional paid-in capital | 541,090 | 521,486 |
Retained earnings | 4,037,610 | 3,845,593 |
Accumulated other comprehensive loss | (72,326) | (71,935) |
Treasury stock at cost (43,692 and 42,116 shares) | (2,860,636) | (2,713,785) |
Total stockholders’ investment | 1,659,311 | 1,595,087 |
Total liabilities and stockholders’ investment | $ 4,684,109 | $ 4,427,412 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 39,175 | $ 41,131 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (shares) | 480,000,000 | 480,000,000 |
Common stock, shares issued (shares) | 179,423,000 | 179,400,000 |
Common stock shares outstanding (shares) | 135,731,000 | 137,284,000 |
Treasury stock (shares) | 43,692,000 | 42,116,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Total revenues | $ 3,908,840 | $ 4,276,037 | $ 7,660,050 | $ 8,201,364 |
Costs and expenses: | ||||
Personnel expenses | 338,886 | 340,630 | 678,984 | 668,927 |
Other selling, general, and administrative expenses | 128,795 | 111,845 | 242,947 | 217,888 |
Total costs and expenses | 3,681,305 | 4,057,029 | 7,207,965 | 7,790,771 |
Income from operations | 227,535 | 219,008 | 452,085 | 410,593 |
Interest and other expense | (6,615) | (5,128) | (23,755) | (15,828) |
Income before provision for income taxes | 220,920 | 213,880 | 428,330 | 394,765 |
Provision for income taxes | 51,740 | 54,717 | 97,362 | 93,305 |
Net income | 169,180 | 159,163 | 330,968 | 301,460 |
Other comprehensive loss | (5,688) | (27,512) | (391) | (28,077) |
Comprehensive income | $ 163,492 | $ 131,651 | $ 330,577 | $ 273,383 |
Basic net income per share (in dollars per share) | $ 1.23 | $ 1.14 | $ 2.41 | $ 2.16 |
Diluted net income per share (in dollars per share) | $ 1.22 | $ 1.13 | $ 2.39 | $ 2.14 |
Basic weighted average shares outstanding (shares) | 137,185 | 139,464 | 137,518 | 139,745 |
Dilutive effect of outstanding stock awards (shares) | 1,071 | 1,147 | 1,149 | 1,215 |
Diluted weighted average shares outstanding (shares) | 138,256 | 140,611 | 138,667 | 140,960 |
Transportation | ||||
Revenues: | ||||
Total revenues | $ 3,638,612 | $ 3,953,139 | $ 7,143,544 | $ 7,590,779 |
Costs and expenses: | ||||
Purchased products and services | 2,972,998 | 3,313,196 | 5,826,254 | 6,354,798 |
Sourcing | ||||
Revenues: | ||||
Total revenues | 270,228 | 322,898 | 516,506 | 610,585 |
Costs and expenses: | ||||
Purchased products and services | $ 240,626 | $ 291,358 | $ 459,780 | $ 549,158 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Investment - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | $ 1,652,561 | $ 1,595,087 | $ 1,484,672 | $ 1,425,745 | $ 1,595,087 | $ 1,425,745 | |
Net income | 169,180 | 161,788 | 159,163 | 142,297 | 330,968 | 301,460 | |
Cumulative effect change - revenue recognition | $ 9,239 | ||||||
Foreign currency translation | (5,688) | 5,297 | (27,512) | (565) | |||
Dividends declared | (69,268) | (69,683) | (65,084) | (65,384) | |||
Stock issued for employee benefit plans | 7,699 | 7,573 | 10,547 | 6,406 | |||
Issuance of restricted stock, net of forfeitures | 0 | 0 | 0 | 0 | |||
Stock-based compensation expense | 14,684 | 17,123 | 26,570 | 18,134 | |||
Repurchase of common stock | (109,857) | (64,624) | (70,197) | (51,200) | |||
Ending Balance | $ 1,659,311 | $ 1,652,561 | $ 1,518,159 | $ 1,484,672 | $ 1,659,311 | $ 1,518,159 | |
Common Stock | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance (in shares) | 136,889 | 137,284 | 139,353 | 139,542 | 137,284 | 139,542 | |
Beginning Balance | $ 13,689 | $ 13,728 | $ 13,935 | $ 13,954 | $ 13,728 | $ 13,954 | |
Stock issued for employee benefit plans (in shares) | 129 | 342 | 174 | 370 | |||
Stock issued for employee benefit plans | $ 13 | $ 34 | $ 17 | $ 37 | |||
Issuance of restricted stock, net of forfeitures (in shares) | 23 | 1 | |||||
Issuance of restricted stock, net of forfeitures (in shares) | (3) | (2) | |||||
Issuance of restricted stock, net of forfeitures | $ 2 | $ 0 | $ 0 | $ 0 | |||
Stock-based compensation expense (in shares) | 0 | 0 | 0 | 0 | |||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 | $ 0 | |||
Repurchase of common stock (in shares) | (1,310) | (734) | (784) | (557) | |||
Repurchase of common stock | $ (131) | $ (73) | $ (78) | $ (56) | |||
Ending Balance (in shares) | 135,731 | 136,889 | 138,744 | 139,353 | 135,731 | 138,744 | |
Ending Balance | $ 13,573 | $ 13,689 | $ 13,874 | $ 13,935 | $ 13,573 | $ 13,874 | |
Additional Paid-in Capital | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | 527,089 | 521,486 | 451,966 | 444,280 | 521,486 | 444,280 | |
Stock issued for employee benefit plans | (681) | (11,520) | (85) | (10,441) | |||
Issuance of restricted stock, net of forfeitures | (2) | 0 | 0 | 0 | |||
Stock-based compensation expense | 14,684 | 17,123 | 26,570 | 18,127 | |||
Ending Balance | 541,090 | 527,089 | 478,451 | 451,966 | 541,090 | 478,451 | |
Retained Earnings | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | 3,937,698 | 3,845,593 | 3,523,245 | 3,437,093 | 3,845,593 | 3,437,093 | |
Net income | 169,180 | 161,788 | 159,163 | 142,297 | |||
Cumulative effect change - revenue recognition | $ 9,239 | ||||||
Dividends declared | (69,268) | (69,683) | (65,084) | (65,384) | |||
Ending Balance | 4,037,610 | 3,937,698 | 3,617,324 | 3,523,245 | 4,037,610 | 3,617,324 | |
Accumulated Other Comprehensive Income (Loss) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | (66,638) | (71,935) | (19,025) | (18,460) | (71,935) | (18,460) | |
Foreign currency translation | (5,688) | 5,297 | (27,512) | (565) | |||
Ending Balance | (72,326) | (66,638) | (46,537) | (19,025) | (72,326) | (46,537) | |
Treasury Stock | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | (2,759,277) | (2,713,785) | (2,485,449) | (2,451,122) | (2,713,785) | (2,451,122) | |
Stock issued for employee benefit plans | 8,367 | 19,059 | 10,615 | 16,810 | |||
Stock-based compensation expense | 0 | 0 | 0 | 7 | |||
Repurchase of common stock | (109,726) | (64,551) | (70,119) | (51,144) | |||
Ending Balance | $ (2,860,636) | $ (2,759,277) | $ (2,544,953) | $ (2,485,449) | $ (2,860,636) | $ (2,544,953) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Investment (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared, per share (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.46 | $ 0.46 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net income | $ 330,968 | $ 301,460 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 49,642 | 48,479 |
Provision for doubtful accounts | 3,224 | 9,055 |
Stock-based compensation | 31,807 | 44,704 |
Deferred income taxes | (5,322) | (9,014) |
Excess tax benefit on stock-based compensation | (5,353) | (7,502) |
Other operating activities | 961 | 668 |
Changes in operating elements (net of acquisitions): | ||
Receivables | 89,175 | (214,620) |
Contract assets | (19,380) | (34,483) |
Prepaid expenses and other | (16,404) | 5,326 |
Accounts payable and outstanding checks | 37,378 | 101,770 |
Accrued compensation | (60,976) | (7,381) |
Accrued transportation expense | 19,149 | 45,420 |
Accrued income taxes | (3,051) | 12,068 |
Other accrued liabilities | 4,166 | 9,277 |
Other assets and liabilities | 542 | 3,243 |
Net cash provided by operating activities | 456,526 | 308,470 |
INVESTING ACTIVITIES | ||
Purchases of property and equipment | (16,774) | (20,569) |
Purchases and development of software | (14,790) | (9,514) |
Acquisitions, net of cash acquired | (58,379) | (1,315) |
Other investing activities | 8 | (1,546) |
Net cash used for investing activities | (89,935) | (32,944) |
FINANCING ACTIVITIES | ||
Proceeds from stock issued for employee benefit plans | 27,952 | 35,846 |
Stock tendered for payment of withholding taxes | (12,680) | (18,893) |
Repurchase of common stock | (173,622) | (119,497) |
Cash dividends | (139,010) | (130,559) |
Proceeds from long-term borrowings | 473,000 | 591,012 |
Payments on long-term borrowings | (561,000) | 0 |
Proceeds from short-term borrowings | 14,000 | 2,418,000 |
Payments on short-term borrowings | (19,000) | (3,067,000) |
Net cash used for financing activities | (390,360) | (291,091) |
Effect of exchange rates on cash | 461 | (7,750) |
Net change in cash and cash equivalents | (23,308) | (23,315) |
Cash and cash equivalents, beginning of period | 378,615 | 333,890 |
Cash and cash equivalents, end of period | 355,307 | 310,575 |
Noncash transactions from financing activities: | ||
Accrued share repurchases held in other accrued liabilities | $ 3,860 | $ 2,400 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION C.H. Robinson Worldwide, Inc., and our subsidiaries (“the company,” “we,” “us,” or “our”) are a global provider of transportation services and logistics solutions operating through a network of offices located in North America, Europe, Asia, Oceania, and South America. The consolidated financial statements include the accounts of C.H. Robinson Worldwide, Inc., and our majority owned and controlled subsidiaries. Our minority interests in subsidiaries are not significant. All intercompany transactions and balances have been eliminated in the consolidated financial statements. On January 1, 2019, we reorganized our enterprise transportation services structure to combine our North American Surface Transportation (“NAST”) and Robinson Fresh transportation networks. The newly combined transportation network will be managed by and reported under the NAST reportable segment. Our reportable segments are NAST and Global Forwarding with all other segments included in All Other and Corporate. We have determined that the remaining Robinson Fresh segment no longer meets the requirements of a reportable segment. Robinson Fresh will be included in the All Other and Corporate reportable segment with Managed Services, Other Surface Transportation outside of North America, and other miscellaneous revenues and unallocated corporate expenses. Prior period information has been reclassified to conform with this presentation. For financial information concerning our reportable segments, refer to Note 9, Segment Reporting . The condensed consolidated financial statements, which are unaudited, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In our opinion, these financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the financial statements for the interim periods presented. Interim results are not necessarily indicative of results for a full year. Consistent with SEC rules and regulations, we have condensed or omitted certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States. You should read the condensed consolidated financial statements and related notes in conjunction with the consolidated financial statements and notes in our Annual Report on Form 10-K for the year ended December 31, 2018. RECENTLY ADOPTED ACCOUNTING STANDARDS In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842) . This update requires a lessee to recognize on the balance sheet a liability to make lease payments and a corresponding right-of-use lease asset. The guidance also requires certain qualitative and quantitative disclosures about the amount, timing, and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) : Targeted Improvements, which provides another transition method no longer requiring application to previously reported periods. Therefore, prior period balances will not be restated. We adopted Topic 842 during the first quarter of 2019 by recognizing right-of-use lease assets and lease liabilities of approximately $265.4 million and $273.3 million , respectively, on January 1, 2019. The adoption of this standard did not have a significant impact on our consolidated results of operations or consolidated statements of cash flows. Refer to Note 11, Leases , for further information. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income , which amends existing guidance for reporting comprehensive income to reflect changes resulting from the Tax Cuts and Jobs Act of 2017 (“Tax Act”). The amendment provides the option to reclassify stranded tax effects resulting from the Tax Act within accumulated other comprehensive income (“AOCI”) to retained earnings. This amendment became effective for us on January 1, 2019. The adoption of this standard did not have a material impact on our consolidated financial statements and disclosures. RECENTLY ISSUED ACCOUNTING STANDARDS In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and in November 2018 issued a subsequent amendment, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . This update significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The update will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. ASU 2018-19 will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope of this amendment that have the contractual right to receive cash. This update is effective for fiscal years and interim periods beginning after December 15, 2019, and is effective for our fiscal year beginning January 1, 2020. We are evaluating the impact of the new standard on our consolidated financial position, results of operations, and cash flows. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Note 1 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2018 , includes a summary of the significant accounting policies and methods used in the preparation of our consolidated financial statements. We have expanded these policies below to effect the adoption of Accounting Standards Codification (“ASC”) 842 in the first quarter of 2019. RIGHT-OF-USE LEASE ASSETS. Right-of-use lease assets are recognized upon lease commencement and represent our right to use an underlying asset for the lease term. LEASE LIABILITIES. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The change in carrying amount of goodwill is as follows (in thousands): NAST Global Forwarding All Other and Corporate Total Balance December 31, 2018 (1) $ 1,016,784 $ 182,029 $ 60,109 $ 1,258,922 Acquisitions — 24,636 7,771 32,407 Translation (685 ) 962 109 386 Balance June 30, 2019 $ 1,016,099 $ 207,627 $ 67,989 $ 1,291,715 ____________________________________________ (1) Amounts have been reclassified related to the reorganization of the NAST and Robinson Fresh transportation networks discussed in Note 9, Segment Reporting . Goodwill is tested at least annually for impairment on November 30, or more frequently if events or changes in circumstances indicate that the asset might be impaired. We first perform a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting units is less than their respective carrying value (“Step Zero Analysis”). If the Step Zero Analysis indicates it is more likely than not that the fair value of our reporting units is less than their respective carrying value, an additional impairment assessment is performed (“Step One Analysis”). As a result of the segment reorganization discussed in Note 9, Segment Reporting , we determined the fair value of each of our reporting units to further support our qualitative assessment and determined the more likely than not criteria had not been met, and therefore a Step One Analysis was not required as of June 30, 2019 . Identifiable intangible assets consisted of the following (in thousands): June 30, 2019 December 31, 2018 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Finite-lived intangibles Customer relationships $ 275,243 $ (174,879 ) $ 100,364 $ 254,293 $ (156,006 ) $ 98,287 Non-competition agreements 300 (270 ) 30 300 (240 ) 60 Total finite-lived intangibles 275,543 (175,149 ) 100,394 254,593 (156,246 ) 98,347 Indefinite-lived intangibles Trademarks 10,475 — 10,475 10,475 — 10,475 Total intangibles $ 286,018 $ (175,149 ) $ 110,869 $ 265,068 $ (156,246 ) $ 108,822 Amortization expense for other intangible assets is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Amortization expense $ 9,675 $ 9,196 $ 18,968 $ 18,595 Definite-lived intangible assets, by reportable segment, as of June 30, 2019 , will be amortized over their remaining lives as follows (in thousands): NAST Global Forwarding All Other and Corporate Total Remainder of 2019 $ 3,907 $ 15,040 $ 310 $ 19,257 2020 250 28,071 620 28,941 2021 250 14,551 620 15,421 2022 250 14,551 620 15,421 2023 250 11,938 620 12,808 Thereafter 164 6,884 1,498 8,546 Total $ 100,394 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: • Level 1 — Quoted market prices in active markets for identical assets or liabilities. • Level 2 — Observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3 — Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. We had no Level 3 assets or liabilities as of and during the periods ended June 30, 2019 , and December 31, 2018 |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS The components of our short-term and long-term debt and the associated interest rates were as follows (dollars in thousands): Average interest rate as of Carrying value as of June 30, 2019 December 31, 2018 Maturity June 30, 2019 December 31, 2018 Revolving credit facility — % 3.64 % October 2023 $ — $ 5,000 Senior Notes, Series A 3.97 % 3.97 % August 2023 175,000 175,000 Senior Notes, Series B 4.26 % 4.26 % August 2028 150,000 150,000 Senior Notes, Series C 4.60 % 4.60 % August 2033 175,000 175,000 Receivables securitization facility (1) 3.05 % 3.15 % December 2020 161,823 249,744 Senior Notes (1) 4.20 % 4.20 % April 2028 592,026 591,608 Total debt 1,253,849 1,346,352 Less: Current maturities and short-term borrowing — (5,000 ) Long-term debt $ 1,253,849 $ 1,341,352 ____________________________________________ (1) Net of unamortized discounts and issuance costs. SENIOR UNSECURED REVOLVING CREDIT FACILITY We have a senior unsecured revolving credit facility (the "Credit Agreement"). On October 24, 2018, the Credit Agreement was amended to increase the total availability from $900 million to $1 billion and extend the maturity date from December 31, 2019, to October 24, 2023. Borrowings under the Credit Agreement generally bear interest at a variable rate determined by a pricing schedule or the base rate (which is the highest of (a) the administrative agent's prime rate, (b) the federal funds rate plus 0.50 percent , or (c) the sum of one-month LIBOR plus a specified margin). As of June 30, 2019 , the variable rate equaled LIBOR plus 1.13 percent . In addition, there is a commitment fee on the average daily undrawn stated amount under each letter of credit issued under the facility ranging from 0.075 percent to 0.200 percent . The recorded amount of borrowings outstanding approximates fair value because of the short maturity period of the debt; therefore, we consider these borrowings to be a Level 2 financial liability. The Credit Agreement contains various restrictions and covenants that require us to maintain certain financial ratios, including a maximum leverage ratio of 3.50 to 1.00 . The Credit Agreement also contains customary events of default. If an event of default under the Credit Agreement occurs and is continuing, then the administrative agent may declare any outstanding obligations under the Credit Agreement to be immediately due and payable. In addition, if we become the subject of voluntary or involuntary proceedings under any bankruptcy, insolvency, or similar law, then any outstanding obligations under the Credit Agreement will automatically become immediately due and payable. NOTE PURCHASE AGREEMENT On August 23, 2013, we entered into a Note Purchase Agreement with certain institutional investors (the “Purchasers”). On August 27, 2013, the Purchasers purchased an aggregate principal amount of $500 million of our Senior Notes, Series A, Senior Notes Series B, and Senior Notes Series C, collectively (the “Notes”). Interest on the Notes is payable semi-annually in arrears. The fair value of the Notes approximated $527.7 million at June 30, 2019 . We estimate the fair value of the Notes primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities, and considering our own risk. If the Notes were recorded at fair value, they would be classified as Level 2. The Note Purchase Agreement contains various restrictions and covenants that require us to maintain certain financial ratios, including a maximum leverage ratio of 3.00 to 1.00 , a minimum interest coverage ratio of 2.00 to 1.00 , and a maximum consolidated priority debt to consolidated total asset ratio of 15 percent . The Note Purchase Agreement provides for customary events of default. The occurrence of an event of default would permit certain Purchasers to declare certain Notes then outstanding to be immediately due and payable. Under the terms of the Note Purchase Agreement, the Notes are redeemable, in whole or in part, at 100 percent of the principal amount being redeemed together with a “make-whole amount” (as defined in the Note Purchase Agreement), and accrued and unpaid interest with respect to each Note. The obligations of the company under the Note Purchase Agreement and the Notes are guaranteed by C.H. Robinson Company, a Delaware corporation and a wholly-owned subsidiary of the company, and by C.H. Robinson Company, Inc., a Minnesota corporation and an indirect wholly-owned subsidiary of the company. U.S. TRADE ACCOUNTS RECEIVABLE SECURITIZATION On April 26, 2017, we entered into a receivables purchase agreement and related transaction documents with The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch and Wells Fargo Bank, N.A. to provide a receivables securitization facility (the “Receivables Securitization Facility”). On December 17, 2018, we entered into an amended Receivables Securitization Facility with Wells Fargo Bank, N.A. and Bank of America, N.A. to extend the maturity date from April 26, 2019, to December 17, 2020. The Receivables Securitization Facility is based on the securitization of our U.S. trade accounts receivable and provides funding of up to $250 million . The interest rate on borrowings under the Receivables Securitization Facility is based on 30-day LIBOR plus a margin. There is also a commitment fee we are required to pay on any unused portion of the facility. The Receivables Securitization Facility expires on December 17, 2020, unless extended by the parties. The recorded amount of borrowings outstanding on the Receivables Securitization Facility approximates fair value because it can be redeemed on short notice and the interest rate floats, therefore, we consider these borrowings to be a Level 2 financial liability. The Receivables Securitization Facility contains various customary affirmative and negative covenants, and it also contains customary default and termination provisions which provide for acceleration of amounts owed under the Receivables Securitization Facility upon the occurrence of certain specified events. SENIOR NOTES On April 9, 2018, we issued senior unsecured notes ("Senior Notes") through a public offering. The Senior Notes bear an annual interest rate of 4.20 percent payable semi-annually on April 15 and October 15, until maturity on April 15, 2028. The proceeds from the Senior Notes were utilized to pay down the balance on our Credit Agreement. Taking into effect the amortization of the original issue discount and all underwriting and issuance expenses, the Senior Notes have an effective yield to maturity of approximately 4.39 percent per annum. The fair value of the Senior Notes, excluding debt discounts and issuance costs, approximated $640.9 million as of June 30, 2019 , based primarily on the market prices quoted from external sources. The carrying value of the Senior Notes was $592.0 million as of June 30, 2019 . If the Senior Notes were measured at fair value in the financial statements, they would be classified as Level 2 in the fair value hierarchy. We may redeem the Senior Notes, in whole or in part, at any time and from time to time prior to their maturity at the applicable redemption prices described in the Senior Notes. Upon the occurrence of a “change of control triggering event” as defined in the Senior Notes (generally, a change of control of us accompanied by a reduction in the credit rating for the Senior Notes), we will generally be required to make an offer to repurchase the Senior Notes from holders at 101 percent of their principal amount plus accrued and unpaid interest to the date of repurchase. The Senior Notes were issued under an indenture that contains covenants imposing certain limitations on our ability to incur liens, enter into sales and leaseback transactions and consolidate, or merge or transfer substantially all of our assets and those of our subsidiaries on a consolidated basis. It also provides for customary events of default (subject in certain cases to customary grace and cure periods), which include among other things nonpayment, breach of covenants in the indenture, and certain events of bankruptcy and insolvency. If an event of default occurs and is continuing with respect to the Senior Notes, the trustee or holders of at least 25 percent in principal amount outstanding of the Senior Notes may declare the principal and the accrued and unpaid interest, if any, on all of the outstanding Senior Notes to be due and payable. These covenants and events of default are subject to a number of important qualifications, limitations, and exceptions that are described in the indenture. The indenture does not contain any financial ratios or specified levels of net worth or liquidity to which we must adhere. As of June 30, 2019 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES C.H. Robinson Worldwide, Inc., and its 80 percent (or more) owned U.S. subsidiaries file a consolidated federal return. We file unitary or separate state returns based on state filing requirements. With few exceptions, we are no longer subject to audits of U.S. federal, state and local, or non-U.S. income tax returns before 2012. We are currently under an Internal Revenue Service audit for the 2015 tax year. Our effective tax rate for the three months ended June 30, 2019 , and 2018 was 23.4 percent and 25.6 percent , respectively, and our effective tax rate for the six months ended June 30, 2019 , and 2018 was 22.7 percent and 23.6 percent , respectively. The effective income tax rate for the three and six months ended June 30, 2019 , was higher than the statutory federal income tax rate due to state income taxes, net of federal benefit, and foreign income taxes, but was partially offset by the tax impact of share-based payment awards. Additionally, the six months ended June 30, 2018 , included net income tax expense of $1.0 million related to adjustments to the one-time transition tax required as part of the Tax Act. We have asserted that we will indefinitely reinvest earnings of foreign subsidiaries to support expansion of our international business. If we repatriated all foreign earnings, the estimated effect on income taxes payable would be an increase of approximately $16.5 million as of June 30, 2019 . Global Intangible Low-tax Income (“GILTI”) and Foreign Derived Intangible Income (“FDII”) were enacted as part of the Tax Act on December 22, 2017. Although enacted more than a year ago, regulatory guidance on the application of FDII has not been finalized. We have included the tax impact of both GILTI and FDII in our income tax expense for the six months ended June 30, 2019 , based on our understanding of the rules available at the time of this filing. However, our calculations could be impacted by future regulations as guidance is finalized. We will continue to monitor any new guidance related to FDII and determine any impact it may have on our calculations. As of June 30, 2019 , we have $39.6 million of unrecognized tax benefits and related interest and penalties. It is possible the amount of unrecognized tax benefit could change in the next 12 months as a result of a lapse of the statute of limitations and settlements with taxing authorities. The total liability for unrecognized tax benefits is expected to decrease by approximately $3.0 million in the next 12 months due to lapsing of statutes. |
STOCK AWARD PLANS
STOCK AWARD PLANS | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK AWARD PLANS | STOCK AWARD PLANS Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense as it vests. A summary of our total compensation expense recognized in our condensed consolidated statements of operations and comprehensive income for stock-based compensation is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock options $ 4,461 $ 7,263 $ 8,710 $ 12,265 Stock awards 9,584 18,692 21,328 30,904 Company expense on ESPP discount 639 615 1,769 1,535 Total stock-based compensation expense $ 14,684 $ 26,570 $ 31,807 $ 44,704 On May 9, 2019, our shareholders approved an amendment and restatement of our 2013 Equity Incentive Plan to increase the number of shares authorized for award by 4,000,000 shares. The 2013 Equity Incentive Plan allows us to grant certain stock awards, including stock options at fair market value and performance shares and restricted stock units, to our key employees and outside directors. A maximum of 17,041,803 shares can be granted under this plan following the amendment and restatement. Approximately 5,207,623 shares were available for stock awards under the plan as of June 30, 2019 . Shares subject to awards that expire or are canceled without delivery of shares or that are settled in cash generally become available again for issuance under the plan. Stock Options - We have awarded time-based and performance-based stock options to certain key employees. These options are subject to certain vesting requirements over a five -year period based on the company’s earnings growth or on the employees continued employment. Any options remaining unvested at the end of the five -year vesting period are forfeited to the company. Although participants can exercise options via a stock swap exercise, we do not issue reloads (restoration options) on the grants. The fair value of these options is established based on the market price on the date of grant, discounted for post-vesting holding restrictions, calculated using the Black-Scholes option pricing model. Changes in measured stock price volatility and interest rates are the primary reasons for changes in the discount. These grants are being expensed based on the terms of the awards. As of June 30, 2019 , unrecognized compensation expense related to stock options was $48.4 million . The amount of future expense to be recognized will be based on the passage of time, the company’s earnings growth, and certain other conditions. Full Value Awards - We have awarded performance-based shares and restricted stock units to certain key employees and non-employee directors. These awards are subject to certain vesting requirements over a five -year period, based on our earnings growth. The awards also contain restrictions on the awardees’ ability to sell or transfer vested awards for a specified period of time. The fair value of these awards is established based on the market price on the date of grant, discounted for post-vesting holding restrictions. The discounts on outstanding grants vary from 15 percent to 21 percent and are calculated using the Black-Scholes option pricing model-protective put method. Changes in measured stock price volatility and interest rates are the primary reasons for changes in the discount. These grants are being expensed based on the terms of the awards. We have also awarded time-based restricted shares and restricted stock units to certain key employees that vest primarily based on their continued employment. The value of these awards is established by the market price on the date of the grant, discounted for post-vesting holding restrictions, and is being expensed over the vesting period of the award. We have also issued restricted stock units to certain key employees and non-employee directors, which are fully vested upon issuance. These units contain restrictions on the awardees’ ability to sell or transfer vested units for a specified period of time. The fair value of these units is established using the same method discussed above. These grants have been expensed during the year they were earned. As of June 30, 2019 , there was unrecognized compensation expense of $100.2 million related to previously granted full value awards. The amount of future expense to be recognized will be based on the passage of time, the company’s earnings growth, and certain other conditions. Employee Stock Purchase Plan - Our 1997 Employee Stock Purchase Plan ("ESPP") allows our employees to contribute up $10,000 of their annual cash compensation to purchase company stock. Purchase price is determined using the closing price on the last day of each quarter discounted by 15 percent . Shares vest immediately. The following is a summary of the employee stock purchase plan activity: Three Months Ended June 30, 2019 Shares purchased by employees Aggregate cost to employees Expense recognized by the company 53,503 $ 3,621,065 $ 639,011 |
LITIGATION
LITIGATION | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | LITIGATION We are not subject to any pending or threatened litigation other than routine litigation arising in the ordinary course of our business operations, including certain contingent auto liability cases. For some legal proceedings, we have accrued an amount that reflects the aggregate liability deemed probable and estimable, but this amount is not material to our condensed consolidated financial position, results of operations, or cash flows. Because of the preliminary nature of many of these proceedings, the difficulty in ascertaining the applicable facts relating to many of these proceedings, the inconsistent treatment of claims made in many of these proceedings, and the difficulty of predicting the settlement value of many of these proceedings, we are often unable to estimate an amount or range of any reasonably possible additional losses. However, based upon our historical experience, the resolution of these proceedings is not expected to have a material effect on our consolidated financial position, results of operations, or cash flows. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS On May 22, 2019, we acquired all of the outstanding shares of Dema Service S.p.A. (“Dema Service”) to strengthen our existing footprint in Italy. Total purchase consideration, net of cash acquired was $14.2 million , which was paid in cash. Identifiable intangible assets and estimated useful lives are as follows (dollars in thousands): Estimated Life (years) Customer relationships 7 $ 4,252 There was $7.8 million of goodwill recorded related to the acquisition of Dema Service. The Dema Service goodwill is a result of acquiring and retaining the Dema Service workforce and expected synergies from integrating its business into ours. Purchase accounting is considered preliminary. No goodwill was recognized for Italian tax purposes from the acquisition. Th e results of operations of Dema Service have been included as part of the All Other and Corporate segment in our consolidated financial statements since May 23, 2019. On February 28, 2019, we acquired all of the outstanding shares of The Space Cargo Group (“Space Cargo”) for the purpose of expanding our presence and capabilities in Spain and Colombia. Total purchase consideration, net of cash acquired, was $44.1 million , which was paid in cash. Identifiable intangible assets and estimated useful lives are as follows (dollars in thousands): Estimated Life (years) Customer relationships 7 $ 16,439 There was $24.6 million |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING On January 1, 2019, we reorganized our enterprise transportation services structure to combine our NAST and Robinson Fresh transportation networks. The newly combined transportation network will be managed by and reported under the NAST reportable segment. We have determined that the remaining Robinson Fresh segment no longer meets the requirements of a reportable segment and will be included in the All Other and Corporate reportable segment. Prior period information has been reclassified to conform with this presentation. Our reportable segments are based on our method of internal reporting, which generally segregates the segments by service line and the primary services they provide to our customers. We identify two reportable segments as follows: • North American Surface Transportation— NAST provides freight transportation services across North America through a network of offices in the United States, Canada, and Mexico. The primary services provided by NAST include truckload, temperature-controlled transportation, LTL, and intermodal. • Global Forwarding— Global Forwarding provides global logistics services through an international network of offices in North America, Asia, Europe, Oceania, and South America and also contracts with independent agents worldwide. The primary services provided by Global Forwarding include ocean freight services, air freight services, and customs brokerage. • All Other and Corporate— All Other and Corporate includes our Robinson Fresh and Managed Services segments, as well as Other Surface Transportation outside of North America and other miscellaneous revenues and unallocated corporate expenses. Robinson Fresh provides sourcing services including the buying, selling, and marketing of fresh fruits, vegetables, and other perishable items. Managed Services provides Transportation Management Services, or Managed TMS ® . Other Surface Transportation revenues are primarily earned by Europe Surface Transportation. Europe Surface Transportation provides services similar to NAST across Europe. The internal reporting of segments is defined, based in part, on the reporting and review process used by our chief operating decision maker (“CODM”), our Chief Executive Officer. The accounting policies of our reportable segments are the same as those described in the summary of significant accounting policies. We do not report our intersegment revenues by reportable segment to our CODM and do not believe they are a meaningful metric for evaluating the performance of our reportable segments. Reportable segment information as of, and for the three and six months ended June 30, 2019 , and 2018 , is as follows (dollars in thousands): NAST Global Forwarding All Other and Corporate Consolidated Three Months Ended June 30, 2019 Total revenues $ 2,872,053 $ 592,483 $ 444,304 $ 3,908,840 Net revenues 486,418 141,936 66,862 695,216 Income (loss) from operations 204,732 26,618 (3,815 ) 227,535 Depreciation and amortization 6,131 9,315 9,636 25,082 Total assets (1) 2,685,477 1,014,235 984,397 4,684,109 Average headcount 7,533 4,770 3,409 15,712 NAST Global Forwarding All Other and Corporate Consolidated Three Months Ended June 30, 2018 (2) Total revenues $ 3,163,185 $ 617,597 $ 495,255 $ 4,276,037 Net revenues 459,706 144,031 67,746 671,483 Income from operations 188,244 29,788 976 219,008 Depreciation and amortization 6,288 8,753 9,197 24,238 Total assets (1) 2,692,908 861,080 899,296 4,453,284 Average headcount 7,401 4,736 3,092 15,229 NAST Global Forwarding All Other and Corporate Consolidated Six Months Ended June 30, 2019 Total revenues $ 5,668,837 $ 1,130,050 $ 861,163 $ 7,660,050 Net revenues 972,968 269,172 131,876 1,374,016 Income (loss) from operations 416,015 40,821 (4,751 ) 452,085 Depreciation and amortization 12,390 18,241 19,011 49,642 Total assets (1) 2,685,477 1,014,235 984,397 4,684,109 Average headcount 7,486 4,728 3,343 15,557 NAST Global Forwarding All Other and Corporate Consolidated Six Months Ended June 30, 2018 (2) Total revenues $ 6,071,604 $ 1,171,351 $ 958,409 $ 8,201,364 Net revenues 898,108 267,068 132,232 1,297,408 Income from operations 367,881 38,009 4,703 410,593 Depreciation and amortization 12,619 17,662 18,198 48,479 Total assets (1) 2,692,908 861,080 899,296 4,453,284 Average headcount 7,368 4,743 3,066 15,177 ____________________________________________ (1) All cash and cash equivalents are included in All Other and Corporate. (2) Amounts have been reclassified to reflect the segment reorganization announced in the first quarter of 2019. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS A summary of our total revenues disaggregated by major service line and timing of revenue recognition is presented below for each of our reportable segments for the three and six months ended June 30, 2019 , and 2018 (in thousands): Three Months Ended June 30, 2019 NAST Global Forwarding All Other and Corporate Total Major Service Lines Transportation and logistics services $ 2,872,053 $ 592,483 $ 174,076 $ 3,638,612 Sourcing — — 270,228 270,228 Total $ 2,872,053 $ 592,483 $ 444,304 $ 3,908,840 Timing of Revenue Recognition Performance obligations completed over time $ 2,872,053 $ 592,483 $ 174,076 $ 3,638,612 Performance obligations completed at a point in time — — 270,228 270,228 Total $ 2,872,053 $ 592,483 $ 444,304 $ 3,908,840 Three Months Ended June 30, 2018 NAST Global Forwarding All Other and Corporate Total Major Service Lines Transportation and logistics services $ 3,163,185 $ 617,597 $ 172,357 $ 3,953,139 Sourcing — — 322,898 322,898 Total $ 3,163,185 $ 617,597 $ 495,255 $ 4,276,037 Timing of Revenue Recognition Performance obligations completed over time $ 3,163,185 $ 617,597 $ 172,357 $ 3,953,139 Performance obligations completed at a point in time — — 322,898 322,898 Total $ 3,163,185 $ 617,597 $ 495,255 $ 4,276,037 Six Months Ended June 30, 2019 NAST Global Forwarding All Other and Corporate Total Major Service Lines Transportation and logistics services $ 5,668,837 $ 1,130,050 $ 344,657 $ 7,143,544 Sourcing — — 516,506 516,506 Total $ 5,668,837 $ 1,130,050 $ 861,163 $ 7,660,050 Timing of Revenue Recognition Performance obligations completed over time $ 5,668,837 $ 1,130,050 $ 344,657 $ 7,143,544 Performance obligations completed at a point in time — — 516,506 516,506 Total $ 5,668,837 $ 1,130,050 $ 861,163 $ 7,660,050 Six Months Ended June 30, 2018 NAST Global Forwarding All Other and Corporate Total Major Service Lines Transportation and logistics services $ 6,071,604 $ 1,171,351 $ 347,824 $ 7,590,779 Sourcing — — 610,585 610,585 Total $ 6,071,604 $ 1,171,351 $ 958,409 $ 8,201,364 Timing of Revenue Recognition Performance obligations completed over time $ 6,071,604 $ 1,171,351 $ 347,824 $ 7,590,779 Performance obligations completed at a point in time — — 610,585 610,585 Total $ 6,071,604 $ 1,171,351 $ 958,409 $ 8,201,364 We typically do not receive consideration and amounts are not due from our customer prior to the completion of our performance obligation and as such contract liabilities as of June 30, 2019 , and revenue recognized in the three and six months ended June 30, 2019 and 2018 resulting from contract liabilities was not significant. Contract assets and accrued expenses-transportation expense fluctuate from period to period primarily based upon shipments in-transit at period end. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASES | LEASES We adopted ASU 2016-02, Leases (Topic 842), as of January 1, 2019. Prior period information was not restated and continues to be presented under ASC 840, Leases . We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to not reassess existing contracts to determine if they contain a lease and to carry forward their historical lease classification upon transition. In addition, we have made a policy election to not apply the guidance of ASC 842 to leases with a term of 12 months or less as allowed by the standard. These leases are recognized as expense on a straight-line basis over the lease term. Adoption of the new standard resulted in the recording of right-of-use lease assets and lease liabilities of $265.4 million and $273.3 million , respectively, as of January 1, 2019. The adoption of this standard did not materially impact our consolidated statement of operations or consolidated statements of cash flows. We determine if our contractual agreements contain a lease at inception. A lease is identified when a contract allows us the right to control an identified asset for a period of time in exchange for consideration. Our lease agreements consist primarily of operating leases for office space, warehouses, office equipment, and a small number of intermodal containers. We do not have material financing leases. Frequently, we enter into contractual relationships with a wide variety of transportation companies for freight capacity, and utilize those relationships to efficiently and cost-effectively arrange the transport of our customers’ freight. These contracts typically have a term of 12 months or less and do not allow us to direct the use or obtain substantially all of the economic benefits of a specifically identified asset. Accordingly, these agreements are not considered leases. Our operating leases are included on the consolidated balance sheets as right-of-use lease assets and lease liabilities. A right-of-use lease asset represents our right to use an underlying asset over the term of a lease while a lease liability represents our obligation to make lease payments arising from the lease. Current and noncurrent lease liabilities are recognized at commencement date at the present value of lease payments, including non-lease components, which consist primarily of common area maintenance charges. Right-of-use lease assets are also recognized at commencement date as the total lease liability plus prepaid rents and less any deferred rent liability that existed under ASC 840, Leases, upon transition. As most of our leases do not provide an implicit rate, we use our fully collateralized incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is influenced by our credit rating and lease term and as such may differ for individual leases. Our lease agreements typically do not contain variable lease payments, residual value guarantees, purchase options, or restrictive covenants. Many of our leases include the option to renew for a period of months to several years. The term of our leases may include the option to renew when it is reasonably certain that we will exercise that option although these occurrences are seldom. We have lease agreements with lease components (e.g., payments for rent) and non-lease components (e.g., payments for common area maintenance and parking), which are all accounted for as a single lease component. We do not have material lease agreements that have not yet commenced that are expected to create significant rights or obligations as of June 30, 2019 . Information regarding lease expense, remaining lease term, discount rate, and other select lease information is presented below as of June 30, 2019 , and for the three and six months ended June 30, 2019 (dollars in thousands): Lease Costs Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease expense $ 16,957 $ 33,779 Short-term lease expense 3,076 5,417 Total lease expense $ 20,033 $ 39,196 Other Lease Information Six Months Ended June 30, 2019 Operating cash flows from operating leases $ 33,376 Right-of-use lease assets obtained in exchange for new lease liabilities 26,198 Lease Term and Discount Rate As of June 30, 2019 Weighted average remaining lease term (in years) (1) 7.8 Weighted average discount rate 3.6 % ____________________________________________ (1) The weighted average remaining lease term is significantly impacted by a 15 -year lease related to office space in Chicago, IL, that commenced in 2018. Excluding this lease, the weighted average remaining lease term of our agreements is 4.3 years . The maturity of lease liabilities as of June 30, 2019 , were as follows (in thousands): Maturity of Lease Liabilities Operating Leases Remaining 2019 $ 32,490 2020 61,449 2021 49,061 2022 35,940 2023 25,550 Thereafter 109,909 Total lease payments 314,399 Less: Interest (43,777 ) Present value of lease liabilities $ 270,622 Minimum future lease commitments under noncancelable lease agreements in excess of one year as of December 31, 2018 , are as follows (in thousands): 2019 $ 53,675 2020 47,680 2021 36,832 2022 27,644 2023 19,406 Thereafter 81,465 Total lease payments $ 266,702 |
CHANGES IN ACCUMULATED OTHER CO
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss is included in Stockholders' investment on our condensed consolidated balance sheets. The recorded balance at June 30, 2019 , and December 31, 2018 , was $72.3 million and $71.9 million , respectively. Accumulated other comprehensive loss is comprised solely of foreign currency adjustments at June 30, 2019 , and December 31, 2018 . |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION C.H. Robinson Worldwide, Inc., and our subsidiaries (“the company,” “we,” “us,” or “our”) are a global provider of transportation services and logistics solutions operating through a network of offices located in North America, Europe, Asia, Oceania, and South America. The consolidated financial statements include the accounts of C.H. Robinson Worldwide, Inc., and our majority owned and controlled subsidiaries. Our minority interests in subsidiaries are not significant. All intercompany transactions and balances have been eliminated in the consolidated financial statements. On January 1, 2019, we reorganized our enterprise transportation services structure to combine our North American Surface Transportation (“NAST”) and Robinson Fresh transportation networks. The newly combined transportation network will be managed by and reported under the NAST reportable segment. Our reportable segments are NAST and Global Forwarding with all other segments included in All Other and Corporate. We have determined that the remaining Robinson Fresh segment no longer meets the requirements of a reportable segment. Robinson Fresh will be included in the All Other and Corporate reportable segment with Managed Services, Other Surface Transportation outside of North America, and other miscellaneous revenues and unallocated corporate expenses. Prior period information has been reclassified to conform with this presentation. For financial information concerning our reportable segments, refer to Note 9, Segment Reporting . The condensed consolidated financial statements, which are unaudited, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In our opinion, these financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the financial statements for the interim periods presented. Interim results are not necessarily indicative of results for a full year. Consistent with SEC rules and regulations, we have condensed or omitted certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States. You should read the condensed consolidated financial statements and related notes in conjunction with the consolidated financial statements and notes in our Annual Report on Form 10-K for the year ended December 31, 2018. |
Recently Adopted and Issued Accounting Standards | RECENTLY ADOPTED ACCOUNTING STANDARDS In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842) . This update requires a lessee to recognize on the balance sheet a liability to make lease payments and a corresponding right-of-use lease asset. The guidance also requires certain qualitative and quantitative disclosures about the amount, timing, and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) : Targeted Improvements, which provides another transition method no longer requiring application to previously reported periods. Therefore, prior period balances will not be restated. We adopted Topic 842 during the first quarter of 2019 by recognizing right-of-use lease assets and lease liabilities of approximately $265.4 million and $273.3 million , respectively, on January 1, 2019. The adoption of this standard did not have a significant impact on our consolidated results of operations or consolidated statements of cash flows. Refer to Note 11, Leases , for further information. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income , which amends existing guidance for reporting comprehensive income to reflect changes resulting from the Tax Cuts and Jobs Act of 2017 (“Tax Act”). The amendment provides the option to reclassify stranded tax effects resulting from the Tax Act within accumulated other comprehensive income (“AOCI”) to retained earnings. This amendment became effective for us on January 1, 2019. The adoption of this standard did not have a material impact on our consolidated financial statements and disclosures. RECENTLY ISSUED ACCOUNTING STANDARDS In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and in November 2018 issued a subsequent amendment, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . This update significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The update will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. ASU 2018-19 will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope of this amendment that have the contractual right to receive cash. This update is effective for fiscal years and interim periods beginning after December 15, 2019, and is effective for our fiscal year beginning January 1, 2020. We are evaluating the impact of the new standard on our consolidated financial position, results of operations, and cash flows. |
Right-of-Use Lease Assets and Lease Liabilities | RIGHT-OF-USE LEASE ASSETS. Right-of-use lease assets are recognized upon lease commencement and represent our right to use an underlying asset for the lease term. LEASE LIABILITIES. |
Goodwill | Goodwill is tested at least annually for impairment on November 30, or more frequently if events or changes in circumstances indicate that the asset might be impaired. We first perform a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting units is less than their respective carrying value (“Step Zero Analysis”). If the Step Zero Analysis indicates it is more likely than not that the fair value of our reporting units is less than their respective carrying value, an additional impairment assessment is performed (“Step One Analysis”). |
Fair Value Measurement | Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: • Level 1 — Quoted market prices in active markets for identical assets or liabilities. • Level 2 — Observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3 — Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in carrying amount of goodwill is as follows (in thousands): NAST Global Forwarding All Other and Corporate Total Balance December 31, 2018 (1) $ 1,016,784 $ 182,029 $ 60,109 $ 1,258,922 Acquisitions — 24,636 7,771 32,407 Translation (685 ) 962 109 386 Balance June 30, 2019 $ 1,016,099 $ 207,627 $ 67,989 $ 1,291,715 ____________________________________________ (1) Amounts have been reclassified related to the reorganization of the NAST and Robinson Fresh transportation networks discussed in Note 9, Segment Reporting . |
Schedule of Intangible Assets | Identifiable intangible assets consisted of the following (in thousands): June 30, 2019 December 31, 2018 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Finite-lived intangibles Customer relationships $ 275,243 $ (174,879 ) $ 100,364 $ 254,293 $ (156,006 ) $ 98,287 Non-competition agreements 300 (270 ) 30 300 (240 ) 60 Total finite-lived intangibles 275,543 (175,149 ) 100,394 254,593 (156,246 ) 98,347 Indefinite-lived intangibles Trademarks 10,475 — 10,475 10,475 — 10,475 Total intangibles $ 286,018 $ (175,149 ) $ 110,869 $ 265,068 $ (156,246 ) $ 108,822 |
Schedule of Amortization Expense | Amortization expense for other intangible assets is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Amortization expense $ 9,675 $ 9,196 $ 18,968 $ 18,595 |
Schedule of Future Amortization of Definite-Lived Intangible Assets | Definite-lived intangible assets, by reportable segment, as of June 30, 2019 , will be amortized over their remaining lives as follows (in thousands): NAST Global Forwarding All Other and Corporate Total Remainder of 2019 $ 3,907 $ 15,040 $ 310 $ 19,257 2020 250 28,071 620 28,941 2021 250 14,551 620 15,421 2022 250 14,551 620 15,421 2023 250 11,938 620 12,808 Thereafter 164 6,884 1,498 8,546 Total $ 100,394 |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Components of Short-term and Long-term Debt | The components of our short-term and long-term debt and the associated interest rates were as follows (dollars in thousands): Average interest rate as of Carrying value as of June 30, 2019 December 31, 2018 Maturity June 30, 2019 December 31, 2018 Revolving credit facility — % 3.64 % October 2023 $ — $ 5,000 Senior Notes, Series A 3.97 % 3.97 % August 2023 175,000 175,000 Senior Notes, Series B 4.26 % 4.26 % August 2028 150,000 150,000 Senior Notes, Series C 4.60 % 4.60 % August 2033 175,000 175,000 Receivables securitization facility (1) 3.05 % 3.15 % December 2020 161,823 249,744 Senior Notes (1) 4.20 % 4.20 % April 2028 592,026 591,608 Total debt 1,253,849 1,346,352 Less: Current maturities and short-term borrowing — (5,000 ) Long-term debt $ 1,253,849 $ 1,341,352 ____________________________________________ (1) Net of unamortized discounts and issuance costs. |
STOCK AWARD PLANS (Tables)
STOCK AWARD PLANS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation | A summary of our total compensation expense recognized in our condensed consolidated statements of operations and comprehensive income for stock-based compensation is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock options $ 4,461 $ 7,263 $ 8,710 $ 12,265 Stock awards 9,584 18,692 21,328 30,904 Company expense on ESPP discount 639 615 1,769 1,535 Total stock-based compensation expense $ 14,684 $ 26,570 $ 31,807 $ 44,704 |
Schedule Employee Stock Purchase Plan Activity | The following is a summary of the employee stock purchase plan activity: Three Months Ended June 30, 2019 Shares purchased by employees Aggregate cost to employees Expense recognized by the company 53,503 $ 3,621,065 $ 639,011 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Intangible Assets and Estimated Useful Lives | Identifiable intangible assets and estimated useful lives are as follows (dollars in thousands): Estimated Life (years) Customer relationships 7 $ 4,252 Identifiable intangible assets and estimated useful lives are as follows (dollars in thousands): Estimated Life (years) Customer relationships 7 $ 16,439 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | Reportable segment information as of, and for the three and six months ended June 30, 2019 , and 2018 , is as follows (dollars in thousands): NAST Global Forwarding All Other and Corporate Consolidated Three Months Ended June 30, 2019 Total revenues $ 2,872,053 $ 592,483 $ 444,304 $ 3,908,840 Net revenues 486,418 141,936 66,862 695,216 Income (loss) from operations 204,732 26,618 (3,815 ) 227,535 Depreciation and amortization 6,131 9,315 9,636 25,082 Total assets (1) 2,685,477 1,014,235 984,397 4,684,109 Average headcount 7,533 4,770 3,409 15,712 NAST Global Forwarding All Other and Corporate Consolidated Three Months Ended June 30, 2018 (2) Total revenues $ 3,163,185 $ 617,597 $ 495,255 $ 4,276,037 Net revenues 459,706 144,031 67,746 671,483 Income from operations 188,244 29,788 976 219,008 Depreciation and amortization 6,288 8,753 9,197 24,238 Total assets (1) 2,692,908 861,080 899,296 4,453,284 Average headcount 7,401 4,736 3,092 15,229 NAST Global Forwarding All Other and Corporate Consolidated Six Months Ended June 30, 2019 Total revenues $ 5,668,837 $ 1,130,050 $ 861,163 $ 7,660,050 Net revenues 972,968 269,172 131,876 1,374,016 Income (loss) from operations 416,015 40,821 (4,751 ) 452,085 Depreciation and amortization 12,390 18,241 19,011 49,642 Total assets (1) 2,685,477 1,014,235 984,397 4,684,109 Average headcount 7,486 4,728 3,343 15,557 NAST Global Forwarding All Other and Corporate Consolidated Six Months Ended June 30, 2018 (2) Total revenues $ 6,071,604 $ 1,171,351 $ 958,409 $ 8,201,364 Net revenues 898,108 267,068 132,232 1,297,408 Income from operations 367,881 38,009 4,703 410,593 Depreciation and amortization 12,619 17,662 18,198 48,479 Total assets (1) 2,692,908 861,080 899,296 4,453,284 Average headcount 7,368 4,743 3,066 15,177 ____________________________________________ (1) All cash and cash equivalents are included in All Other and Corporate. (2) Amounts have been reclassified to reflect the segment reorganization announced in the first quarter of 2019. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Total Revenues Disaggregated by Major Service Line and Timing of Revenue Recognition | A summary of our total revenues disaggregated by major service line and timing of revenue recognition is presented below for each of our reportable segments for the three and six months ended June 30, 2019 , and 2018 (in thousands): Three Months Ended June 30, 2019 NAST Global Forwarding All Other and Corporate Total Major Service Lines Transportation and logistics services $ 2,872,053 $ 592,483 $ 174,076 $ 3,638,612 Sourcing — — 270,228 270,228 Total $ 2,872,053 $ 592,483 $ 444,304 $ 3,908,840 Timing of Revenue Recognition Performance obligations completed over time $ 2,872,053 $ 592,483 $ 174,076 $ 3,638,612 Performance obligations completed at a point in time — — 270,228 270,228 Total $ 2,872,053 $ 592,483 $ 444,304 $ 3,908,840 Three Months Ended June 30, 2018 NAST Global Forwarding All Other and Corporate Total Major Service Lines Transportation and logistics services $ 3,163,185 $ 617,597 $ 172,357 $ 3,953,139 Sourcing — — 322,898 322,898 Total $ 3,163,185 $ 617,597 $ 495,255 $ 4,276,037 Timing of Revenue Recognition Performance obligations completed over time $ 3,163,185 $ 617,597 $ 172,357 $ 3,953,139 Performance obligations completed at a point in time — — 322,898 322,898 Total $ 3,163,185 $ 617,597 $ 495,255 $ 4,276,037 Six Months Ended June 30, 2019 NAST Global Forwarding All Other and Corporate Total Major Service Lines Transportation and logistics services $ 5,668,837 $ 1,130,050 $ 344,657 $ 7,143,544 Sourcing — — 516,506 516,506 Total $ 5,668,837 $ 1,130,050 $ 861,163 $ 7,660,050 Timing of Revenue Recognition Performance obligations completed over time $ 5,668,837 $ 1,130,050 $ 344,657 $ 7,143,544 Performance obligations completed at a point in time — — 516,506 516,506 Total $ 5,668,837 $ 1,130,050 $ 861,163 $ 7,660,050 Six Months Ended June 30, 2018 NAST Global Forwarding All Other and Corporate Total Major Service Lines Transportation and logistics services $ 6,071,604 $ 1,171,351 $ 347,824 $ 7,590,779 Sourcing — — 610,585 610,585 Total $ 6,071,604 $ 1,171,351 $ 958,409 $ 8,201,364 Timing of Revenue Recognition Performance obligations completed over time $ 6,071,604 $ 1,171,351 $ 347,824 $ 7,590,779 Performance obligations completed at a point in time — — 610,585 610,585 Total $ 6,071,604 $ 1,171,351 $ 958,409 $ 8,201,364 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Lease Expense, Remaining Lease Terms, Discount Rate and Other Information | Information regarding lease expense, remaining lease term, discount rate, and other select lease information is presented below as of June 30, 2019 , and for the three and six months ended June 30, 2019 (dollars in thousands): Lease Costs Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease expense $ 16,957 $ 33,779 Short-term lease expense 3,076 5,417 Total lease expense $ 20,033 $ 39,196 Other Lease Information Six Months Ended June 30, 2019 Operating cash flows from operating leases $ 33,376 Right-of-use lease assets obtained in exchange for new lease liabilities 26,198 Lease Term and Discount Rate As of June 30, 2019 Weighted average remaining lease term (in years) (1) 7.8 Weighted average discount rate 3.6 % ____________________________________________ (1) The weighted average remaining lease term is significantly impacted by a 15 -year lease related to office space in Chicago, IL, that commenced in 2018. Excluding this lease, the weighted average remaining lease term of our agreements is 4.3 years . |
Schedule of Maturity of Lease Liabilities | The maturity of lease liabilities as of June 30, 2019 , were as follows (in thousands): Maturity of Lease Liabilities Operating Leases Remaining 2019 $ 32,490 2020 61,449 2021 49,061 2022 35,940 2023 25,550 Thereafter 109,909 Total lease payments 314,399 Less: Interest (43,777 ) Present value of lease liabilities $ 270,622 |
Schedule of Minimum Future Lase Commitments Under Noncancelable Lease Agreements at Prior Year End | Minimum future lease commitments under noncancelable lease agreements in excess of one year as of December 31, 2018 , are as follows (in thousands): 2019 $ 53,675 2020 47,680 2021 36,832 2022 27,644 2023 19,406 Thereafter 81,465 Total lease payments $ 266,702 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use lease assets | $ 262,355 | |
Lease liabilities | $ 270,622 | |
ASU No. 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use lease assets | $ 265,400 | |
Lease liabilities | $ 273,300 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Change in the Carrying Amount of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance, beginning of period | $ 1,258,922 |
Acquisitions | 32,407 |
Translation | 386 |
Balance, end of period | 1,291,715 |
NAST | |
Goodwill [Roll Forward] | |
Balance, beginning of period | 1,016,784 |
Acquisitions | 0 |
Translation | (685) |
Balance, end of period | 1,016,099 |
Global Forwarding | |
Goodwill [Roll Forward] | |
Balance, beginning of period | 182,029 |
Acquisitions | 24,636 |
Translation | 962 |
Balance, end of period | 207,627 |
All Other and Corporate | |
Goodwill [Roll Forward] | |
Balance, beginning of period | 60,109 |
Acquisitions | 7,771 |
Translation | 109 |
Balance, end of period | $ 67,989 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Finite-lived intangibles | ||
Finite-lived intangibles, Cost | $ 275,543 | $ 254,593 |
Accumulated Amortization | (175,149) | (156,246) |
Finite-lived intangibles, Net | 100,394 | 98,347 |
Indefinite-lived intangibles | ||
Indefinite-lived intangibles | 10,475 | 10,475 |
Total intangibles, Cost | 286,018 | 265,068 |
Total intangibles, Net | 110,869 | 108,822 |
Customer relationships | ||
Finite-lived intangibles | ||
Finite-lived intangibles, Cost | 275,243 | 254,293 |
Accumulated Amortization | (174,879) | (156,006) |
Finite-lived intangibles, Net | 100,364 | 98,287 |
Non-competition agreements | ||
Finite-lived intangibles | ||
Finite-lived intangibles, Cost | 300 | 300 |
Accumulated Amortization | (270) | (240) |
Finite-lived intangibles, Net | 30 | 60 |
Trademarks | ||
Indefinite-lived intangibles | ||
Indefinite-lived intangibles | $ 10,475 | $ 10,475 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization Expense and Future Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense | $ 9,675 | $ 9,196 | $ 18,968 | $ 18,595 | |
Estimated amortization expense | |||||
Remainder of 2019 | 19,257 | 19,257 | |||
2020 | 28,941 | 28,941 | |||
2021 | 15,421 | 15,421 | |||
2022 | 15,421 | 15,421 | |||
2023 | 12,808 | 12,808 | |||
Thereafter | 8,546 | 8,546 | |||
Finite-lived intangibles, Net | 100,394 | 100,394 | $ 98,347 | ||
NAST | |||||
Estimated amortization expense | |||||
Remainder of 2019 | 3,907 | 3,907 | |||
2020 | 250 | 250 | |||
2021 | 250 | 250 | |||
2022 | 250 | 250 | |||
2023 | 250 | 250 | |||
Thereafter | 164 | 164 | |||
Global Forwarding | |||||
Estimated amortization expense | |||||
Remainder of 2019 | 15,040 | 15,040 | |||
2020 | 28,071 | 28,071 | |||
2021 | 14,551 | 14,551 | |||
2022 | 14,551 | 14,551 | |||
2023 | 11,938 | 11,938 | |||
Thereafter | 6,884 | 6,884 | |||
All Other and Corporate | |||||
Estimated amortization expense | |||||
Remainder of 2019 | 310 | 310 | |||
2020 | 620 | 620 | |||
2021 | 620 | 620 | |||
2022 | 620 | 620 | |||
2023 | 620 | 620 | |||
Thereafter | $ 1,498 | $ 1,498 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - Level 3 - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Level 3 Fair Value | ||
Assets at fair value | $ 0 | $ 0 |
Liabilities at fair value | $ 0 | $ 0 |
FINANCING ARRANGEMENTS - Compon
FINANCING ARRANGEMENTS - Components of Short-term and Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,253,849 | $ 1,346,352 |
Less: Current maturities and short-term borrowing | 0 | (5,000) |
Long-term debt | $ 1,253,849 | $ 1,341,352 |
Line of Credit | Revolving credit facility | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Average interest rate as of | 0.00% | 3.64% |
Total debt | $ 0 | $ 5,000 |
Senior Notes | Series A Notes | ||
Debt Instrument [Line Items] | ||
Average interest rate as of | 3.97% | 3.97% |
Total debt | $ 175,000 | $ 175,000 |
Senior Notes | Series B Notes | ||
Debt Instrument [Line Items] | ||
Average interest rate as of | 4.26% | 4.26% |
Total debt | $ 150,000 | $ 150,000 |
Senior Notes | Series C Notes | ||
Debt Instrument [Line Items] | ||
Average interest rate as of | 4.60% | 4.60% |
Total debt | $ 175,000 | $ 175,000 |
Secured Debt | Receivables securitization facility | ||
Debt Instrument [Line Items] | ||
Average interest rate as of | 3.05% | 3.15% |
Total debt | $ 161,823 | $ 249,744 |
Unsecured Debt | Senior Notes | ||
Debt Instrument [Line Items] | ||
Average interest rate as of | 4.20% | 4.20% |
Total debt | $ 592,026 | $ 591,608 |
FINANCING ARRANGEMENTS - Additi
FINANCING ARRANGEMENTS - Additional Information (Details) | Apr. 09, 2018 | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 17, 2018USD ($) | Sep. 30, 2018USD ($) | Aug. 27, 2013USD ($) |
Debt Instrument [Line Items] | ||||||
Long-term debt, fair value | $ 527,700,000 | |||||
Long-term debt | 1,253,849,000 | $ 1,346,352,000 | ||||
Line of Credit | Senior Unsecured Revolving Credit Facility 2019 Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 900,000,000 | |||||
Line of Credit | Amended Credit Agreement Due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||
Line of Credit | Amended Credit Agreement Due 2023 | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (percent) | 0.50% | |||||
Line of Credit | Amended Credit Agreement Due 2023 | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (percent) | 1.13% | |||||
Line of Credit | Amended Credit Agreement Due 2023 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee (percent) | 0.075% | |||||
Line of Credit | Amended Credit Agreement Due 2023 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee (percent) | 0.20% | |||||
Unsecured Debt | Amended Credit Agreement Due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum leverage ratio | 3.50 | |||||
Unsecured Debt | Senior Notes Due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, fair value | $ 640,900,000 | |||||
Debt instrument, redemption price (percent) | 101.00% | |||||
Debt instrument, annual interest rate (percent) | 4.20% | |||||
Debt instrument, effective yield (percent) | 4.39% | |||||
Long-term debt | $ 592,026,000 | 591,608,000 | ||||
Threshold for holders of principal outstanding to declare principal and unpaid interest payable (percent) | 25.00% | |||||
Senior Notes | Note Purchase Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Maximum leverage ratio | 3 | |||||
Minimum interest coverage ratio | 2 | |||||
Debt instrument principal amount | $ 500,000,000 | |||||
Maximum priority debt to total assets ratio (percent) | 15.00% | |||||
Debt instrument, redemption price (percent) | 100.00% | |||||
Secured Debt | Receivables securitization facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 161,823,000 | $ 249,744,000 | ||||
Secured Debt | Receivables securitization facility | Wells Fargo Bank N.A. and Bank Of America N.A. | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 250,000,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax (percent) | 23.40% | 25.60% | 22.70% | 23.60% |
Tax expense related to adjustments to the one-time transition tax required as part of Tax Act | $ 1 | |||
Estimated effect on income taxes payable from foreign earnings repatriated | $ 16.5 | |||
Unrecognized tax benefits and related interest and penalties, all of which would affect our effective tax rate if recognized | $ 39.6 | 39.6 | ||
Decrease in unrecognized tax benefits due to lapse of statute of limitations | $ 3 | $ 3 |
STOCK AWARD PLANS - Summary of
STOCK AWARD PLANS - Summary of Total Compensation Expense Recognized in Statements of Operations for Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 14,684,000 | $ 26,570,000 | $ 31,807,000 | $ 44,704,000 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 4,461,000 | 7,263,000 | 8,710,000 | 12,265,000 |
Stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 9,584,000 | 18,692,000 | 21,328,000 | 30,904,000 |
Company expense on ESPP discount | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 639,011 | $ 615,000 | $ 1,769,000 | $ 1,535,000 |
STOCK AWARD PLANS - Additional
STOCK AWARD PLANS - Additional Information (Details) - USD ($) | May 09, 2019 | Jun. 30, 2019 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 4,000,000 | |
Maximum shares that can be granted under stock plan (shares) | 17,041,803 | |
Shares available for stock awards (shares) | 5,207,623 | |
Maximum employee contribution to purchase company stock | $ 10,000 | |
Discount rate used to determine the purchase price | 15.00% | |
Stock Option | ||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||
Stock award, vesting period | 5 years | |
Unrecognized compensation expense | $ 48,400,000 | |
Restricted Stock Awards | ||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||
Stock award, vesting period | 5 years | |
Unrecognized compensation expense | $ 100,200,000 | |
Restricted Stock Awards | Minimum | ||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||
Discount on outstanding grants (percent) | 15.00% | |
Restricted Stock Awards | Maximum | ||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||
Discount on outstanding grants (percent) | 21.00% |
STOCK AWARD PLANS - Summary o_2
STOCK AWARD PLANS - Summary of Employee Stock Purchase Plan Activity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares purchased by employees (shares) | 53,503 | |||
Aggregate cost to employees | $ 3,621,065 | |||
Expense recognized by the company | 14,684,000 | $ 26,570,000 | $ 31,807,000 | $ 44,704,000 |
Company expense on ESPP discount | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expense recognized by the company | $ 639,011 | $ 615,000 | $ 1,769,000 | $ 1,535,000 |
ACQUISITIONS - Additional Infor
ACQUISITIONS - Additional Information (Details) - USD ($) $ in Thousands | May 22, 2019 | Feb. 28, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Business Acquisition [Line Items] | ||||
Total purchase consideration net of cash acquired | $ 58,379 | $ 1,315 | ||
Goodwill recorded in acquisition | $ 32,407 | |||
Dema Service | ||||
Business Acquisition [Line Items] | ||||
Total purchase consideration net of cash acquired | $ 14,200 | |||
Goodwill recorded in acquisition | $ 7,800 | |||
Space Cargo | ||||
Business Acquisition [Line Items] | ||||
Total purchase consideration net of cash acquired | $ 44,100 | |||
Goodwill recorded in acquisition | $ 24,600 |
ACQUISITIONS - Identifiable Int
ACQUISITIONS - Identifiable Intangible Assets and Estimated Useful Lives (Details) - Customer relationships - USD ($) $ in Thousands | May 22, 2019 | Feb. 28, 2019 |
Dema Service | ||
Business Acquisition [Line Items] | ||
Estimated Life (years) | 7 years | |
Identifiable intangible assets | $ 4,252 | |
Space Cargo | ||
Business Acquisition [Line Items] | ||
Estimated Life (years) | 7 years | |
Identifiable intangible assets | $ 16,439 |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (segment) | 2 |
SEGMENT REPORTING - Reportable
SEGMENT REPORTING - Reportable Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)employee | Jun. 30, 2018USD ($)employee | Jun. 30, 2019USD ($)employee | Jun. 30, 2018USD ($)employee | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 3,908,840 | $ 4,276,037 | $ 7,660,050 | $ 8,201,364 | |
Net revenues | 695,216 | 671,483 | 1,374,016 | 1,297,408 | |
Income (loss) from operations | 227,535 | 219,008 | 452,085 | 410,593 | |
Depreciation and amortization | 25,082 | 24,238 | 49,642 | 48,479 | |
Total assets | $ 4,684,109 | $ 4,453,284 | $ 4,684,109 | $ 4,453,284 | $ 4,427,412 |
Average headcount (employee) | employee | 15,712 | 15,229 | 15,557 | 15,177 | |
Operating Segments | NAST | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 2,872,053 | $ 3,163,185 | $ 5,668,837 | $ 6,071,604 | |
Net revenues | 486,418 | 459,706 | 972,968 | 898,108 | |
Income (loss) from operations | 204,732 | 188,244 | 416,015 | 367,881 | |
Depreciation and amortization | 6,131 | 6,288 | 12,390 | 12,619 | |
Total assets | $ 2,685,477 | $ 2,692,908 | $ 2,685,477 | $ 2,692,908 | |
Average headcount (employee) | employee | 7,533 | 7,401 | 7,486 | 7,368 | |
Operating Segments | Global Forwarding | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 592,483 | $ 617,597 | $ 1,130,050 | $ 1,171,351 | |
Net revenues | 141,936 | 144,031 | 269,172 | 267,068 | |
Income (loss) from operations | 26,618 | 29,788 | 40,821 | 38,009 | |
Depreciation and amortization | 9,315 | 8,753 | 18,241 | 17,662 | |
Total assets | $ 1,014,235 | $ 861,080 | $ 1,014,235 | $ 861,080 | |
Average headcount (employee) | employee | 4,770 | 4,736 | 4,728 | 4,743 | |
Operating Segments | All Other and Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 444,304 | $ 495,255 | $ 861,163 | $ 958,409 | |
Net revenues | 66,862 | 67,746 | 131,876 | 132,232 | |
Income (loss) from operations | (3,815) | 976 | (4,751) | 4,703 | |
Depreciation and amortization | 9,636 | 9,197 | 19,011 | 18,198 | |
Total assets | $ 984,397 | $ 899,296 | $ 984,397 | $ 899,296 | |
Average headcount (employee) | employee | 3,409 | 3,092 | 3,343 | 3,066 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Total Revenues Disaggregated by Major Service Line and Timing of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 3,908,840 | $ 4,276,037 | $ 7,660,050 | $ 8,201,364 |
Transportation and logistics services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3,638,612 | 3,953,139 | 7,143,544 | 7,590,779 |
Transportation and logistics services | Performance obligations completed over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3,638,612 | 3,953,139 | 7,143,544 | 7,590,779 |
Sourcing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 270,228 | 322,898 | 516,506 | 610,585 |
Sourcing | Performance obligations completed at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 270,228 | 322,898 | 516,506 | 610,585 |
Operating Segments | NAST | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2,872,053 | 3,163,185 | 5,668,837 | 6,071,604 |
Operating Segments | Global Forwarding | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 592,483 | 617,597 | 1,130,050 | 1,171,351 |
Operating Segments | All Other and Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 444,304 | 495,255 | 861,163 | 958,409 |
Operating Segments | Transportation and logistics services | NAST | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2,872,053 | 5,668,837 | ||
Operating Segments | Transportation and logistics services | NAST | Performance obligations completed over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2,872,053 | 3,163,185 | 5,668,837 | 6,071,604 |
Operating Segments | Transportation and logistics services | Global Forwarding | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 592,483 | 1,130,050 | ||
Operating Segments | Transportation and logistics services | Global Forwarding | Performance obligations completed over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 592,483 | 617,597 | 1,130,050 | 1,171,351 |
Operating Segments | Transportation and logistics services | All Other and Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 174,076 | 172,357 | 344,657 | 347,824 |
Operating Segments | Transportation and logistics services | All Other and Corporate | Performance obligations completed over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 174,076 | 172,357 | 344,657 | 347,824 |
Operating Segments | Sourcing | NAST | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating Segments | Sourcing | NAST | Performance obligations completed at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating Segments | Sourcing | Global Forwarding | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating Segments | Sourcing | Global Forwarding | Performance obligations completed at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating Segments | Sourcing | All Other and Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 270,228 | 516,506 | ||
Operating Segments | Sourcing | All Other and Corporate | Performance obligations completed at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 270,228 | $ 322,898 | $ 516,506 | $ 610,585 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Right-of-use lease assets | $ 262,355 | ||
Lease liabilities | $ 270,622 | ||
Weighted average remaining lease term, excluding Chicago office space (in years) | 4 years 3 months 18 days | ||
ASU No. 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Right-of-use lease assets | $ 265,400 | ||
Lease liabilities | $ 273,300 | ||
Chicago Office Space | |||
Lessee, Lease, Description [Line Items] | |||
Lease term (in years) | 15 years |
LEASES - Lease Data (Details)
LEASES - Lease Data (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Lease Costs | ||
Operating lease expense | $ 16,957 | $ 33,779 |
Short-term lease expense | 3,076 | 5,417 |
Total lease expense | $ 20,033 | 39,196 |
Other Lease Information | ||
Operating cash flows from operating leases | 33,376 | |
Right-of-use lease assets obtained in exchange for new lease liabilities | $ 26,198 | |
Lease Term and Discount Rate | ||
Weighted average remaining lease term (in years) | 7 years 9 months 18 days | 7 years 9 months 18 days |
Weighted average discount rate (percent) | 3.60% | 3.60% |
LEASES - Maturity of Lease Liab
LEASES - Maturity of Lease Liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Maturity of Lease Liabilities | |
Remaining 2019 | $ 32,490 |
2020 | 61,449 |
2021 | 49,061 |
2022 | 35,940 |
2023 | 25,550 |
Thereafter | 109,909 |
Total lease payments | 314,399 |
Less: Interest | (43,777) |
Present value of lease liabilities | $ 270,622 |
LEASES - Minimum Future Lease C
LEASES - Minimum Future Lease Commitments Under Topic 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Minimum Future Lease Commitments Payments Under Noncancelable Lease Agreements | |
2019 | $ 53,675 |
2020 | 47,680 |
2021 | 36,832 |
2022 | 27,644 |
2023 | 19,406 |
Thereafter | 81,465 |
Total lease payments | $ 266,702 |
CHANGES IN ACCUMULATED OTHER _2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Stockholders' Equity Note [Abstract] | ||
Accumulated other comprehensive loss | $ 72,326 | $ 71,935 |