Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Document Information [Line Items] | ||
Title of 12(b) Security | Class B common stock, no par value | |
Trading Symbol | SNDR | |
Security Exchange Name | NYSE | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-38054 | |
Entity Registrant Name | Schneider National, Inc. | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-1258315 | |
Entity Address, Address Line One | 3101 South Packerland Drive | |
Entity Address, City or Town | Green Bay | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 54313 | |
City Area Code | 920 | |
Local Phone Number | 592-2000 | |
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 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001692063 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 83,029,500 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 94,088,025 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 437.1 | $ 378.7 |
Marketable securities | 47.4 | 51.3 |
Trade accounts receivable - net of allowance | 498.8 | 593.1 |
Other receivables | 160.2 | 31.8 |
Current portion of lease receivables - net of allowance | 125.5 | 129.1 |
Inventories | 57.7 | 60.8 |
Prepaid expenses and other current assets | 200.9 | 79.5 |
Total current assets | 1,527.6 | 1,324.3 |
Property and equipment: | ||
Transportation equipment | 2,814.1 | 2,900.2 |
Land, buildings, and improvements | 189.5 | 177.2 |
Other property and equipment | 161.9 | 157.6 |
Total property and equipment | 3,165.5 | 3,235 |
Accumulated depreciation | 1,270.7 | 1,312.8 |
Net property and equipment | 1,894.8 | 1,922.2 |
Lease receivables | 126.3 | 133.2 |
Capitalized software and other noncurrent assets | 155 | 82.6 |
Goodwill | 127.3 | 162.2 |
Total noncurrent assets | 2,303.4 | 2,300.2 |
Total Assets | 3,831 | 3,624.5 |
CURRENT LIABILITIES: | ||
Trade accounts payable | 239.8 | 226 |
Accrued salaries, wages, and benefits | 60.2 | 94.8 |
Claims accruals - current | 192 | 58.3 |
Current maturities of debt and finance lease obligations | 101.5 | 51.7 |
Dividends payable | 10.9 | 10.6 |
Other current liabilities | 94 | 81.2 |
Total current liabilities | 698.4 | 522.6 |
NONCURRENT LIABILITIES: | ||
Long-term debt and finance lease obligations | 304.6 | 359.6 |
Claims accruals - noncurrent | 103.6 | 113.3 |
Deferred income taxes | 446.5 | 450.6 |
Other | 85.7 | 46.1 |
Total noncurrent liabilities | 940.4 | 969.6 |
Total liabilities | 1,638.8 | 1,492.2 |
SHAREHOLDERS' EQUITY | ||
Additional paid-in capital | 1,544.5 | 1,544 |
Retained earnings | 648.2 | 589.3 |
Accumulated other comprehensive loss | (0.5) | (1) |
Total shareholders' equity | 2,192.2 | 2,132.3 |
TOTAL | 3,831 | 3,624.5 |
Class A Common Shares | ||
SHAREHOLDERS' EQUITY | ||
Common stock | 0 | 0 |
Class B Common Stock | ||
SHAREHOLDERS' EQUITY | ||
Common stock | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Operating revenues | $ 1,183.9 | $ 1,280.1 | $ 3,590.7 | $ 3,655.4 |
Operating expenses: | ||||
Purchased transportation | 511.7 | 521.1 | 1,488.8 | 1,431.8 |
Salaries, wages, and benefits | 257.3 | 317.2 | 856.6 | 943.2 |
Fuel and fuel taxes | 70.6 | 87.4 | 221.6 | 260.3 |
Depreciation and amortization | 74.1 | 73.3 | 222.4 | 216.9 |
Operating supplies and expenses | 139.1 | 123.5 | 418.3 | 364.2 |
Insurance and related expenses | 24.4 | 24.1 | 78 | 69.4 |
Other general expenses | 27.3 | 35.6 | 90.3 | 112.4 |
Goodwill impairment charge | 0 | 0 | 34.6 | 0 |
Restructuring charges | 50.4 | 0 | 50.4 | 0 |
Total operating expenses | 1,154.9 | 1,182.2 | 3,461 | 3,398.2 |
Income from operations | 29 | 97.9 | 129.7 | 257.2 |
Other expenses (income): | ||||
Interest income | (2) | (1.5) | (6.6) | (2.9) |
Interest expense | 3.8 | 4.2 | 13.1 | 13 |
Other expenses (income) - net | 0.5 | (0.1) | 1.2 | (1) |
Total other expense | 2.3 | 2.6 | 7.7 | 9.1 |
Income before income taxes | 26.7 | 95.3 | 122 | 248.1 |
Provision for income taxes | 7 | 24.6 | 30.9 | 64 |
Net income | 19.7 | 70.7 | 91.1 | 184.1 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (0.3) | (0.9) | (0.2) | (0.8) |
Unrealized income (loss) on marketable securities—net of tax | 0 | 0 | 0.7 | (0.3) |
Total other comprehensive income (loss) | (0.3) | (0.9) | 0.5 | (1.1) |
Comprehensive income | $ 19.4 | $ 69.8 | $ 91.6 | $ 183 |
Weighted average common shares outstanding | 177.1 | 177 | 177.1 | 177 |
Earnings Per Share, Basic | $ 0.11 | $ 0.40 | $ 0.51 | $ 1.04 |
Weighted average diluted shares outstanding | 177.3 | 177.2 | 177.3 | 177.2 |
Diluted earnings per common share | $ 0.11 | $ 0.40 | $ 0.51 | $ 1.04 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Trade allowance | $ 8.5 | $ 6.8 |
Allowance for lease receivables | $ 0.6 | $ 0.5 |
Class A Common Shares | ||
Common stock, par value (usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (shares) | 83,029,500 | 83,029,500 |
Common stock, shares outstanding (shares) | 83,029,500 | 83,029,500 |
Class B Common Stock | ||
Common stock, par value (usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (shares) | 94,834,653 | 94,593,588 |
Common stock, shares outstanding (shares) | 94,085,005 | 93,969,268 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities: | ||
Net income | $ 91.1 | $ 184.1 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 222.4 | 216.9 |
Goodwill impairment charge | 34.6 | 0 |
Gains on sales of property and equipment | (2.6) | (4.5) |
Impairment on assets held for sale | 11.8 | 0.3 |
Proceeds from lease receipts | 59.6 | 0 |
Deferred income taxes | (4.3) | 34.4 |
Long-term incentive and share-based compensation expense | 3.4 | 15.3 |
Non-cash restructuring charges | 43.3 | 0 |
Other noncash items | 2.9 | (3.1) |
Changes in operating assets and liabilities: | ||
Receivables | 82.2 | (67.3) |
Other assets | (31.1) | (15.9) |
Payables | 0.3 | 35.6 |
Claims reserves and other receivables, net | (1.1) | 13.7 |
Other liabilities | (42.2) | 0.6 |
Net cash provided by operating activities | 470.3 | 410.1 |
Investing Activities: | ||
Purchases of transportation equipment | (308.6) | (268.1) |
Purchases of other property and equipment | (42.8) | (22.3) |
Proceeds from sale of property and equipment | 38.8 | 74.6 |
Proceeds from lease receipts | 0 | 56.2 |
Proceeds from sale of off-lease inventory | 15 | 0 |
Purchases of lease equipment | (62.7) | (58.4) |
Sales of marketable securities | 13.2 | 3.9 |
Purchases of marketable securities | (8.5) | (8) |
Net cash used in investing activities | (355.6) | (222.1) |
Financing Activities: | ||
Payments of debt and finance lease obligations | (5.7) | (17.3) |
Payments for deferred consideration related to acquisition | (18.7) | (19.3) |
Dividends paid | (31.9) | (30.1) |
Net cash used in financing activities | (56.3) | (66.7) |
Net increase (decrease) in cash and cash equivalents | 58.4 | 121.3 |
Cash and Cash Equivalents: | ||
Cash and cash equivalents | 437.1 | 359.8 |
Noncash investing and financing activity: | ||
Capital Expenditures Incurred but Not yet Paid | 15.5 | 36.5 |
Dividends declared but not yet paid | 10.9 | 10.7 |
Ownership interest in Platform Science, Inc. | 0 | 2.5 |
Cash paid during the period for: | ||
Interest | 12.4 | 13.2 |
Income taxes—net of refunds | $ 42.6 | $ 25.5 |
Consolidated Statements Shareho
Consolidated Statements Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss (Gain) |
Balance at Dec. 31, 2017 | $ 1,890.2 | $ 0 | $ 1,534.6 | $ 355.6 | $ 0 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 47.6 | 47.6 | |||
Other comprehensive gain (loss) | (0.6) | (0.6) | |||
Share-based compensation expense (benefit) | 2 | 2 | |||
Dividends declared at $0.06 per share | (10.7) | (10.7) | |||
Share issuances | 0.2 | 0.2 | |||
Shares withheld for employee taxes | (1.8) | (1.8) | |||
Other | 0.2 | 0.2 | |||
Balance at Mar. 31, 2018 | 1,934.4 | 0 | 1,535.2 | 399.8 | (0.6) |
Balance at Dec. 31, 2017 | 1,890.2 | 0 | 1,534.6 | 355.6 | 0 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 184.1 | ||||
Balance at Sep. 30, 2018 | 2,053.2 | 0 | 1,539.3 | 515 | (1.1) |
Increase (Decrease) in Stockholders' Equity | |||||
Cumulative–effect adjustment of ASU 2014-09 adoption | 7.3 | 7.3 | |||
Balance at Mar. 31, 2018 | 1,934.4 | 0 | 1,535.2 | 399.8 | (0.6) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 65.8 | 65.8 | |||
Other comprehensive gain (loss) | 0.4 | 0.4 | |||
Share-based compensation expense (benefit) | 2.1 | 2.1 | |||
Dividends declared at $0.06 per share | (10.5) | (10.5) | |||
Share issuances | 0.3 | 0.3 | |||
Shares withheld for employee taxes | (0.1) | (0.1) | |||
Exercise of employee stock options | 0.2 | 0.2 | |||
Other | (0.1) | (0.1) | |||
Balance at Jun. 30, 2018 | 1,992.5 | 0 | 1,537.6 | 455.1 | (0.2) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 70.7 | 70.7 | |||
Other comprehensive gain (loss) | (0.9) | (0.9) | |||
Share-based compensation expense (benefit) | 2.1 | 2.1 | |||
Dividends declared at $0.06 per share | (10.8) | (10.8) | |||
Shares withheld for employee taxes | (0.4) | (0.4) | |||
Balance at Sep. 30, 2018 | 2,053.2 | 0 | 1,539.3 | 515 | (1.1) |
Balance at Dec. 31, 2018 | 2,132.3 | 0 | 1,544 | 589.3 | (1) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 36.9 | 36.9 | |||
Other comprehensive gain (loss) | 0.7 | 0.7 | |||
Share-based compensation expense (benefit) | 2 | 2 | |||
Dividends declared at $0.06 per share | (10.7) | (10.7) | |||
Shares withheld for employee taxes | (1.2) | (1.2) | |||
Balance at Mar. 31, 2019 | 2,160 | 0 | 1,544.8 | 615.5 | (0.3) |
Balance at Dec. 31, 2018 | 2,132.3 | 0 | 1,544 | 589.3 | (1) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 91.1 | ||||
Balance at Sep. 30, 2019 | 2,192.2 | 0 | 1,544.5 | 648.2 | (0.5) |
Balance at Mar. 31, 2019 | 2,160 | 0 | 1,544.8 | 615.5 | (0.3) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 34.5 | 34.5 | |||
Other comprehensive gain (loss) | 0.1 | 0.1 | |||
Share-based compensation expense (benefit) | 1.6 | 1.6 | |||
Dividends declared at $0.06 per share | (11) | (11) | |||
Share issuances | 0.2 | 0.2 | |||
Balance at Jun. 30, 2019 | 2,185.4 | 0 | 1,546.6 | 639 | (0.2) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 19.7 | 19.7 | |||
Other comprehensive gain (loss) | (0.3) | (0.3) | |||
Share-based compensation expense (benefit) | (2.2) | (2.2) | |||
Dividends declared at $0.06 per share | (10.5) | (10.5) | |||
Share issuances | 0.1 | 0.1 | |||
Balance at Sep. 30, 2019 | $ 2,192.2 | $ 0 | $ 1,544.5 | $ 648.2 | $ (0.5) |
Consolidated Statements Share_2
Consolidated Statements Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared per share of Class A and Class B common shares | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 |
General
General | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GENERAL Description of Business In this report, when we refer to “the Company,” “us,” “we,” “our,” “ours,” or “Schneider,” we are referring to Schneider National, Inc. and its subsidiaries. We are a leading transportation services organization headquartered in Green Bay, Wisconsin. We provide a broad portfolio of premier truckload, intermodal, and logistics solutions and operate one of the largest trucking fleets in North America. Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with GAAP and the rules and regulations of the SEC applicable to quarterly reports on Form 10-Q. Therefore, these consolidated financial statements and footnotes do not include all disclosures required by GAAP for annual financial statements. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Financial results for an interim period are not necessarily indicative of the results for a full year. All intercompany transactions have been eliminated in consolidation. In the opinion of management, these statements reflect all adjustments (consisting only of normal recurring adjustments) necessary for the fair presentation of our financial results for the interim periods presented. Accounting Standards Issued but Not Yet Adopted In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with the existing capitalization requirements for implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for us as of January 1, 2020 with early adoption permitted. We are currently evaluating the impact the adoption of this ASU will have on our consolidated financial statements and do not believe the impact will be material. We expect to adopt this standard on a prospective basis. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Requirements, which removes, modifies, and adds certain disclosure requirements for fair value measurements. These changes include removing the disclosure requirements related to the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and adding disclosure requirements about the range and weighted - average of significant unobservable inputs used to develop Level 3 fair value measurements. Additionally, the amendments remove the phrase “at a minimum” from the codification clarifying that materiality should be considered when evaluating disclosure requirements. ASU 2018-13 is effective for us January 1, 2020 with early adoption permitted. We do not believe the adoption of this ASU will have a material impact on our disclosures and plan to early adopt this standard during the fourth quarter of 2019. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which requires companies to use a forward-looking, expected loss model to estimate credit losses on various types of financial assets and net investments in leases. It also requires additional disclosures related to credit quality of trade and other receivables, including information related to management’s estimate of credit allowances. In November 2018, this was further updated with the issuance of ASU 2018-19, which excludes receivables from operating leases from the scope. ASU 2016-13 is effective for us January 1, 2020. We expect the standard will have an impact on our available-for-sale debt securities, net investment in leases, contract assets, trade accounts receivable, and reinsurance receivables. Based on our initial assessment, we do not believe the standard will have a material impact on our consolidated financial statements, however we are still assessing the financial impacts. |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES We adopted ASU 2016-02, Leases, which is codified in ASC 842, as of January 1, 2019 using the optional transition method. The FASB’s authoritative guidance provided companies with the option to apply this ASU to new and existing leases within the scope of the guidance as of the beginning of the period of adoption. We elected this transition method of applying the new lease standard and have recognized right-of-use assets and lease liabilities as of January 1, 2019. Prior period amounts were not adjusted and will continue to be reported under the accounting standards in effect for those periods. Adoption of the new standard resulted in the initial recording of right-of-use lease assets and related lease liabilities of $80.6 million and $85.2 million , respectively. As of September 30, 2019 , right-of-use lease assets and related lease liabilities were $73.5 million and $80.9 million , respectively. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments over the term. Schneider's incremental borrowing rates are used as the discount rates for leases and are determined based on U. S. Treasury rates plus an applicable margin to arrive at all-in rates. Schneider uses multiple discount rates based on lease terms and other economic factors. The operating lease right-of-use asset also includes accrued lease expense resulting from the straight-line accounting under prior accounting methods, which is now being amortized over the remaining life of the lease. In addition, we elected the package of practical expedients provided under the guidance. The practical expedient package applies to leases that commenced prior to adoption of the new standard and permits companies not to reassess whether existing or expired contracts are or contain a lease, the lease classification, and any initial direct costs for any existing leases. We also elected the practical expedient related to land easements, allowing us to carry forward the accounting treatment of our existing agreements for land easements, none of which were material as of January 1, 2019 . As lessee We lease real estate, transportation equipment, and office equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our finance leases relate almost entirely to transportation equipment. A majority of our leases include an option to extend the lease, and a small number of our leases include an option to early terminate the lease, which may include a termination payment. If we are reasonably certain to exercise an option to extend a lease, the extension period is included as part of the right-of-use asset and lease liability. For our real estate leases, we have elected to apply the recognition requirement to leases of twelve months or less, therefore, an operating lease right-of-use asset and liability will be recognized for all these leases. For our equipment leases, we have elected to not apply the recognition requirements to leases of twelve months or less. These leases will be expensed on a straight-line basis and no operating lease right-of-use asset or liability will be recorded. We have also elected to not separate the different components within the contract for our leases; therefore, all fixed costs associated with the lease are included in the right-of-use asset and the operating lease liability. This often relates to the requirement for us to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to a base or fixed rent. Some of our leases have variable payment amounts, and the variable portions of those payments are excluded from the right-of-use asset and the lease liability. At the inception of our contracts we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. A small number of our leased real estate assets contains subleases. The lease income related to subleases is shown in the lease cost table below. Certain equipment leases contain residual value guarantees. These are guarantees made to the lessor that the value of the underlying asset returned to the lessor at the end of the lease will be at least a specified amount. None of our leases contain restrictions or covenants that restrict us from incurring other financial obligations. The following table presents our net lease costs for the three and nine months ended September 30, 2019 : Financial Statement Classification Three Months Ended Nine Months Ended (in millions) 2019 2019 Operating lease cost Operating lease cost Operating supplies and expenses $ 8.7 $ 26.5 Short-term lease cost (1) Operating supplies and expenses 2.0 5.5 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 0.9 2.5 Interest on lease liabilities Interest expense — 0.2 Variable lease cost Operating supplies and expenses 0.7 2.1 Sublease income Operating revenues (1.5 ) (4.1 ) Total net lease cost $ 10.8 $ 32.7 (1) Includes short-term lease costs for leases twelve months or less, including those with a duration of one month or less. As of September 30, 2019 , remaining lease terms and discount rates under operating and finance leases were as follows: September 30, 2019 Weighted-average remaining lease term Operating leases 4.4 years Finance leases 0.3 years Weighted-average discount rate Operating leases 4.2 % Finance leases 4.7 % Other information related to our leases is as follows: Nine Months Ended (in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 26.7 Operating cash flows from finance leases 0.2 Financing cash flows from finance leases 2.0 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 20.6 Finance leases — Operating lease right-of-use assets, current operating lease liabilities, and noncurrent operating lease liabilities are included in capitalized software and other noncurrent assets, other current liabilities, and other noncurrent liabilities, respectively, in the consolidated balance sheet as of September 30, 2019 . At September 30, 2019 , future lease payments under operating and finance leases were as follows: (in millions) Operating Leases Finance Leases Remaining 2019 $ 8.5 $ 4.9 2020 27.2 0.4 2021 17.1 — 2022 11.1 — 2023 8.8 — 2024 and thereafter 15.9 — Total 88.6 5.3 Amount representing interest (7.7 ) — Present value of lease payments 80.9 5.3 Current maturities (27.1 ) (5.3 ) Long-term lease obligations $ 53.8 $ — For certain of our real estate leases, there are options contained within the lease agreement to extend beyond the initial lease term. The Company recognizes options as right-of-use assets and lease liabilities when deemed reasonably certain to be exercised. Future operating lease payments at September 30, 2019 include $10.6 million related to options to extend lease terms that we are reasonably certain to exercise. Options related to our FTFM service offering that were previously considered reasonably certain to be exercised have been removed from the future operating lease payments at September 30, 2019 . Under ASC 840, future minimum lease payments as of December 31, 2018 were as follows: (in millions) Operating Leases Capital Leases 2019 $ 35.8 $ 6.9 2020 25.7 0.2 2021 14.9 — 2022 8.4 — 2023 6.8 — 2024 and thereafter 12.7 — Total $ 104.3 7.1 Amount representing interest (0.2 ) Present value of minimum lease payments 6.9 Current maturities (6.7 ) Long-term capital lease obligations $ 0.2 As of September 30, 2019 , we had additional leases that had not yet commenced of $3.5 million . These leases will commence during the remainder of 2019 and have lease terms of four months to five years . The consolidated balance sheets include right-of-use assets acquired under finance leases as components of property and equipment as of September 30, 2019 and January 1, 2019, as follows: (in millions) September 30, 2019 January 1, 2019 Transportation equipment $ 19.9 $ 19.9 Real property 0.8 0.8 Other property 1.5 0.6 Accumulated amortization (13.1 ) (11.2 ) Total $ 9.1 $ 10.1 Transportation equipment is being amortized to the estimated residual value by the end of the lease. Real and other property under finance leases are being amortized to a zero net book value over the initial lease term. As lessor We finance various types of transportation-related equipment for independent third parties under lease contracts which are generally for one year to five years and are accounted for as sales-type leases with fully guaranteed residual values. At the inception of the contracts, we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. With the adoption of ASC 842, all leases for which we are the lessor meet the definition of sales-type leases. In addition, as required under ASC 842, all cash flows from lease receipts are classified as operating activities on the consolidated statement of cash flows beginning January 1, 2019. We previously presented all cash flows from lease receipts as investing activities. As of September 30, 2019 and January 1, 2019, the investment in lease receivables was as follows: September 30, 2019 January 1, 2019 Future minimum payments to be received on leases $ 146.9 $ 140.0 Guaranteed residual lease values 138.2 151.0 Total minimum lease payments to be received 285.1 291.0 Unearned income (33.3 ) (28.7 ) Net investment in leases 251.8 262.3 Current maturities of lease receivables 126.1 129.6 Less—allowance for doubtful accounts (0.6 ) (0.5 ) Current portion of lease receivables—net of allowance 125.5 129.1 Lease receivables—noncurrent $ 126.3 $ 133.2 The amounts to be received on lease receivables as of September 30, 2019 were as follows: (in millions) September 30, 2019 Remaining 2019 $ 35.8 2020 142.8 2021 75.7 2022 30.6 2023 0.2 2024 and thereafter — Total undiscounted lease cash flows 285.1 Amount representing interest (33.3 ) Present value of lease receivables 251.8 Current lease receivables, net of allowance (125.5 ) Long-term lease receivable $ 126.3 Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon receipt of notification of bankruptcy, upon the death of a customer, or in other instances in which management concludes collectability is not reasonably assured. The accrual of interest and other fees is resumed when all payments are less than 60 days past due. At September 30, 2019 , there were $0.3 million of lease payments greater than 90 days past due. The terms of the lease agreements generally give us the ability to take possession of the underlying asset in the event of default. We may incur credit losses in excess of recorded allowances if the full amount of any anticipated proceeds from the sale or re-lease of the asset supporting the third party’s financial obligation is not realized. Repossession and estimated reconditioning costs are recorded in the consolidated statements of comprehensive income in the period incurred. Our lease payments primarily include base rentals and guaranteed residual values. In addition, we also collect one-time administrative fees and heavy vehicle use tax on our leases. We have elected to not separate the different components within the contract as the administrative fees were not material for the three and nine months ended September 30, 2019 . We have also elected to exclude all taxes assessed by a governmental authority from the consideration (e.g., heavy vehicle use tax). All of our leases require fixed payments, therefore we have no variable payment provisions. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This is estimated to approximate the fair value of the equipment. Equipment is leased under sales-type leases where the lessees guarantee the residual value of the equipment. The table below provides additional information on our sales-type leases. Three Months Ended Nine Months Ended (in millions) 2019 2019 Revenue $ 50.9 $ 159.8 Cost of goods sold (46.8 ) (144.0 ) Operating profit $ 4.1 $ 15.8 Interest income on lease receivable $ 7.0 $ 20.4 Initial direct cost incurred — — The amounts to be received on lease receivables as of December 31, 2018 under ASC 840 were as follows: (in millions) December 31, 2018 2019 $ 149.0 2020 112.7 2021 29.0 2022 0.3 2023 — 2024 and thereafter — Total $ 291.0 |
Leases | LEASES We adopted ASU 2016-02, Leases, which is codified in ASC 842, as of January 1, 2019 using the optional transition method. The FASB’s authoritative guidance provided companies with the option to apply this ASU to new and existing leases within the scope of the guidance as of the beginning of the period of adoption. We elected this transition method of applying the new lease standard and have recognized right-of-use assets and lease liabilities as of January 1, 2019. Prior period amounts were not adjusted and will continue to be reported under the accounting standards in effect for those periods. Adoption of the new standard resulted in the initial recording of right-of-use lease assets and related lease liabilities of $80.6 million and $85.2 million , respectively. As of September 30, 2019 , right-of-use lease assets and related lease liabilities were $73.5 million and $80.9 million , respectively. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments over the term. Schneider's incremental borrowing rates are used as the discount rates for leases and are determined based on U. S. Treasury rates plus an applicable margin to arrive at all-in rates. Schneider uses multiple discount rates based on lease terms and other economic factors. The operating lease right-of-use asset also includes accrued lease expense resulting from the straight-line accounting under prior accounting methods, which is now being amortized over the remaining life of the lease. In addition, we elected the package of practical expedients provided under the guidance. The practical expedient package applies to leases that commenced prior to adoption of the new standard and permits companies not to reassess whether existing or expired contracts are or contain a lease, the lease classification, and any initial direct costs for any existing leases. We also elected the practical expedient related to land easements, allowing us to carry forward the accounting treatment of our existing agreements for land easements, none of which were material as of January 1, 2019 . As lessee We lease real estate, transportation equipment, and office equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our finance leases relate almost entirely to transportation equipment. A majority of our leases include an option to extend the lease, and a small number of our leases include an option to early terminate the lease, which may include a termination payment. If we are reasonably certain to exercise an option to extend a lease, the extension period is included as part of the right-of-use asset and lease liability. For our real estate leases, we have elected to apply the recognition requirement to leases of twelve months or less, therefore, an operating lease right-of-use asset and liability will be recognized for all these leases. For our equipment leases, we have elected to not apply the recognition requirements to leases of twelve months or less. These leases will be expensed on a straight-line basis and no operating lease right-of-use asset or liability will be recorded. We have also elected to not separate the different components within the contract for our leases; therefore, all fixed costs associated with the lease are included in the right-of-use asset and the operating lease liability. This often relates to the requirement for us to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to a base or fixed rent. Some of our leases have variable payment amounts, and the variable portions of those payments are excluded from the right-of-use asset and the lease liability. At the inception of our contracts we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. A small number of our leased real estate assets contains subleases. The lease income related to subleases is shown in the lease cost table below. Certain equipment leases contain residual value guarantees. These are guarantees made to the lessor that the value of the underlying asset returned to the lessor at the end of the lease will be at least a specified amount. None of our leases contain restrictions or covenants that restrict us from incurring other financial obligations. The following table presents our net lease costs for the three and nine months ended September 30, 2019 : Financial Statement Classification Three Months Ended Nine Months Ended (in millions) 2019 2019 Operating lease cost Operating lease cost Operating supplies and expenses $ 8.7 $ 26.5 Short-term lease cost (1) Operating supplies and expenses 2.0 5.5 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 0.9 2.5 Interest on lease liabilities Interest expense — 0.2 Variable lease cost Operating supplies and expenses 0.7 2.1 Sublease income Operating revenues (1.5 ) (4.1 ) Total net lease cost $ 10.8 $ 32.7 (1) Includes short-term lease costs for leases twelve months or less, including those with a duration of one month or less. As of September 30, 2019 , remaining lease terms and discount rates under operating and finance leases were as follows: September 30, 2019 Weighted-average remaining lease term Operating leases 4.4 years Finance leases 0.3 years Weighted-average discount rate Operating leases 4.2 % Finance leases 4.7 % Other information related to our leases is as follows: Nine Months Ended (in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 26.7 Operating cash flows from finance leases 0.2 Financing cash flows from finance leases 2.0 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 20.6 Finance leases — Operating lease right-of-use assets, current operating lease liabilities, and noncurrent operating lease liabilities are included in capitalized software and other noncurrent assets, other current liabilities, and other noncurrent liabilities, respectively, in the consolidated balance sheet as of September 30, 2019 . At September 30, 2019 , future lease payments under operating and finance leases were as follows: (in millions) Operating Leases Finance Leases Remaining 2019 $ 8.5 $ 4.9 2020 27.2 0.4 2021 17.1 — 2022 11.1 — 2023 8.8 — 2024 and thereafter 15.9 — Total 88.6 5.3 Amount representing interest (7.7 ) — Present value of lease payments 80.9 5.3 Current maturities (27.1 ) (5.3 ) Long-term lease obligations $ 53.8 $ — For certain of our real estate leases, there are options contained within the lease agreement to extend beyond the initial lease term. The Company recognizes options as right-of-use assets and lease liabilities when deemed reasonably certain to be exercised. Future operating lease payments at September 30, 2019 include $10.6 million related to options to extend lease terms that we are reasonably certain to exercise. Options related to our FTFM service offering that were previously considered reasonably certain to be exercised have been removed from the future operating lease payments at September 30, 2019 . Under ASC 840, future minimum lease payments as of December 31, 2018 were as follows: (in millions) Operating Leases Capital Leases 2019 $ 35.8 $ 6.9 2020 25.7 0.2 2021 14.9 — 2022 8.4 — 2023 6.8 — 2024 and thereafter 12.7 — Total $ 104.3 7.1 Amount representing interest (0.2 ) Present value of minimum lease payments 6.9 Current maturities (6.7 ) Long-term capital lease obligations $ 0.2 As of September 30, 2019 , we had additional leases that had not yet commenced of $3.5 million . These leases will commence during the remainder of 2019 and have lease terms of four months to five years . The consolidated balance sheets include right-of-use assets acquired under finance leases as components of property and equipment as of September 30, 2019 and January 1, 2019, as follows: (in millions) September 30, 2019 January 1, 2019 Transportation equipment $ 19.9 $ 19.9 Real property 0.8 0.8 Other property 1.5 0.6 Accumulated amortization (13.1 ) (11.2 ) Total $ 9.1 $ 10.1 Transportation equipment is being amortized to the estimated residual value by the end of the lease. Real and other property under finance leases are being amortized to a zero net book value over the initial lease term. As lessor We finance various types of transportation-related equipment for independent third parties under lease contracts which are generally for one year to five years and are accounted for as sales-type leases with fully guaranteed residual values. At the inception of the contracts, we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. With the adoption of ASC 842, all leases for which we are the lessor meet the definition of sales-type leases. In addition, as required under ASC 842, all cash flows from lease receipts are classified as operating activities on the consolidated statement of cash flows beginning January 1, 2019. We previously presented all cash flows from lease receipts as investing activities. As of September 30, 2019 and January 1, 2019, the investment in lease receivables was as follows: September 30, 2019 January 1, 2019 Future minimum payments to be received on leases $ 146.9 $ 140.0 Guaranteed residual lease values 138.2 151.0 Total minimum lease payments to be received 285.1 291.0 Unearned income (33.3 ) (28.7 ) Net investment in leases 251.8 262.3 Current maturities of lease receivables 126.1 129.6 Less—allowance for doubtful accounts (0.6 ) (0.5 ) Current portion of lease receivables—net of allowance 125.5 129.1 Lease receivables—noncurrent $ 126.3 $ 133.2 The amounts to be received on lease receivables as of September 30, 2019 were as follows: (in millions) September 30, 2019 Remaining 2019 $ 35.8 2020 142.8 2021 75.7 2022 30.6 2023 0.2 2024 and thereafter — Total undiscounted lease cash flows 285.1 Amount representing interest (33.3 ) Present value of lease receivables 251.8 Current lease receivables, net of allowance (125.5 ) Long-term lease receivable $ 126.3 Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon receipt of notification of bankruptcy, upon the death of a customer, or in other instances in which management concludes collectability is not reasonably assured. The accrual of interest and other fees is resumed when all payments are less than 60 days past due. At September 30, 2019 , there were $0.3 million of lease payments greater than 90 days past due. The terms of the lease agreements generally give us the ability to take possession of the underlying asset in the event of default. We may incur credit losses in excess of recorded allowances if the full amount of any anticipated proceeds from the sale or re-lease of the asset supporting the third party’s financial obligation is not realized. Repossession and estimated reconditioning costs are recorded in the consolidated statements of comprehensive income in the period incurred. Our lease payments primarily include base rentals and guaranteed residual values. In addition, we also collect one-time administrative fees and heavy vehicle use tax on our leases. We have elected to not separate the different components within the contract as the administrative fees were not material for the three and nine months ended September 30, 2019 . We have also elected to exclude all taxes assessed by a governmental authority from the consideration (e.g., heavy vehicle use tax). All of our leases require fixed payments, therefore we have no variable payment provisions. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This is estimated to approximate the fair value of the equipment. Equipment is leased under sales-type leases where the lessees guarantee the residual value of the equipment. The table below provides additional information on our sales-type leases. Three Months Ended Nine Months Ended (in millions) 2019 2019 Revenue $ 50.9 $ 159.8 Cost of goods sold (46.8 ) (144.0 ) Operating profit $ 4.1 $ 15.8 Interest income on lease receivable $ 7.0 $ 20.4 Initial direct cost incurred — — The amounts to be received on lease receivables as of December 31, 2018 under ASC 840 were as follows: (in millions) December 31, 2018 2019 $ 149.0 2020 112.7 2021 29.0 2022 0.3 2023 — 2024 and thereafter — Total $ 291.0 |
Leases | LEASES We adopted ASU 2016-02, Leases, which is codified in ASC 842, as of January 1, 2019 using the optional transition method. The FASB’s authoritative guidance provided companies with the option to apply this ASU to new and existing leases within the scope of the guidance as of the beginning of the period of adoption. We elected this transition method of applying the new lease standard and have recognized right-of-use assets and lease liabilities as of January 1, 2019. Prior period amounts were not adjusted and will continue to be reported under the accounting standards in effect for those periods. Adoption of the new standard resulted in the initial recording of right-of-use lease assets and related lease liabilities of $80.6 million and $85.2 million , respectively. As of September 30, 2019 , right-of-use lease assets and related lease liabilities were $73.5 million and $80.9 million , respectively. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments over the term. Schneider's incremental borrowing rates are used as the discount rates for leases and are determined based on U. S. Treasury rates plus an applicable margin to arrive at all-in rates. Schneider uses multiple discount rates based on lease terms and other economic factors. The operating lease right-of-use asset also includes accrued lease expense resulting from the straight-line accounting under prior accounting methods, which is now being amortized over the remaining life of the lease. In addition, we elected the package of practical expedients provided under the guidance. The practical expedient package applies to leases that commenced prior to adoption of the new standard and permits companies not to reassess whether existing or expired contracts are or contain a lease, the lease classification, and any initial direct costs for any existing leases. We also elected the practical expedient related to land easements, allowing us to carry forward the accounting treatment of our existing agreements for land easements, none of which were material as of January 1, 2019 . As lessee We lease real estate, transportation equipment, and office equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our finance leases relate almost entirely to transportation equipment. A majority of our leases include an option to extend the lease, and a small number of our leases include an option to early terminate the lease, which may include a termination payment. If we are reasonably certain to exercise an option to extend a lease, the extension period is included as part of the right-of-use asset and lease liability. For our real estate leases, we have elected to apply the recognition requirement to leases of twelve months or less, therefore, an operating lease right-of-use asset and liability will be recognized for all these leases. For our equipment leases, we have elected to not apply the recognition requirements to leases of twelve months or less. These leases will be expensed on a straight-line basis and no operating lease right-of-use asset or liability will be recorded. We have also elected to not separate the different components within the contract for our leases; therefore, all fixed costs associated with the lease are included in the right-of-use asset and the operating lease liability. This often relates to the requirement for us to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to a base or fixed rent. Some of our leases have variable payment amounts, and the variable portions of those payments are excluded from the right-of-use asset and the lease liability. At the inception of our contracts we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. A small number of our leased real estate assets contains subleases. The lease income related to subleases is shown in the lease cost table below. Certain equipment leases contain residual value guarantees. These are guarantees made to the lessor that the value of the underlying asset returned to the lessor at the end of the lease will be at least a specified amount. None of our leases contain restrictions or covenants that restrict us from incurring other financial obligations. The following table presents our net lease costs for the three and nine months ended September 30, 2019 : Financial Statement Classification Three Months Ended Nine Months Ended (in millions) 2019 2019 Operating lease cost Operating lease cost Operating supplies and expenses $ 8.7 $ 26.5 Short-term lease cost (1) Operating supplies and expenses 2.0 5.5 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 0.9 2.5 Interest on lease liabilities Interest expense — 0.2 Variable lease cost Operating supplies and expenses 0.7 2.1 Sublease income Operating revenues (1.5 ) (4.1 ) Total net lease cost $ 10.8 $ 32.7 (1) Includes short-term lease costs for leases twelve months or less, including those with a duration of one month or less. As of September 30, 2019 , remaining lease terms and discount rates under operating and finance leases were as follows: September 30, 2019 Weighted-average remaining lease term Operating leases 4.4 years Finance leases 0.3 years Weighted-average discount rate Operating leases 4.2 % Finance leases 4.7 % Other information related to our leases is as follows: Nine Months Ended (in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 26.7 Operating cash flows from finance leases 0.2 Financing cash flows from finance leases 2.0 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 20.6 Finance leases — Operating lease right-of-use assets, current operating lease liabilities, and noncurrent operating lease liabilities are included in capitalized software and other noncurrent assets, other current liabilities, and other noncurrent liabilities, respectively, in the consolidated balance sheet as of September 30, 2019 . At September 30, 2019 , future lease payments under operating and finance leases were as follows: (in millions) Operating Leases Finance Leases Remaining 2019 $ 8.5 $ 4.9 2020 27.2 0.4 2021 17.1 — 2022 11.1 — 2023 8.8 — 2024 and thereafter 15.9 — Total 88.6 5.3 Amount representing interest (7.7 ) — Present value of lease payments 80.9 5.3 Current maturities (27.1 ) (5.3 ) Long-term lease obligations $ 53.8 $ — For certain of our real estate leases, there are options contained within the lease agreement to extend beyond the initial lease term. The Company recognizes options as right-of-use assets and lease liabilities when deemed reasonably certain to be exercised. Future operating lease payments at September 30, 2019 include $10.6 million related to options to extend lease terms that we are reasonably certain to exercise. Options related to our FTFM service offering that were previously considered reasonably certain to be exercised have been removed from the future operating lease payments at September 30, 2019 . Under ASC 840, future minimum lease payments as of December 31, 2018 were as follows: (in millions) Operating Leases Capital Leases 2019 $ 35.8 $ 6.9 2020 25.7 0.2 2021 14.9 — 2022 8.4 — 2023 6.8 — 2024 and thereafter 12.7 — Total $ 104.3 7.1 Amount representing interest (0.2 ) Present value of minimum lease payments 6.9 Current maturities (6.7 ) Long-term capital lease obligations $ 0.2 As of September 30, 2019 , we had additional leases that had not yet commenced of $3.5 million . These leases will commence during the remainder of 2019 and have lease terms of four months to five years . The consolidated balance sheets include right-of-use assets acquired under finance leases as components of property and equipment as of September 30, 2019 and January 1, 2019, as follows: (in millions) September 30, 2019 January 1, 2019 Transportation equipment $ 19.9 $ 19.9 Real property 0.8 0.8 Other property 1.5 0.6 Accumulated amortization (13.1 ) (11.2 ) Total $ 9.1 $ 10.1 Transportation equipment is being amortized to the estimated residual value by the end of the lease. Real and other property under finance leases are being amortized to a zero net book value over the initial lease term. As lessor We finance various types of transportation-related equipment for independent third parties under lease contracts which are generally for one year to five years and are accounted for as sales-type leases with fully guaranteed residual values. At the inception of the contracts, we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. With the adoption of ASC 842, all leases for which we are the lessor meet the definition of sales-type leases. In addition, as required under ASC 842, all cash flows from lease receipts are classified as operating activities on the consolidated statement of cash flows beginning January 1, 2019. We previously presented all cash flows from lease receipts as investing activities. As of September 30, 2019 and January 1, 2019, the investment in lease receivables was as follows: September 30, 2019 January 1, 2019 Future minimum payments to be received on leases $ 146.9 $ 140.0 Guaranteed residual lease values 138.2 151.0 Total minimum lease payments to be received 285.1 291.0 Unearned income (33.3 ) (28.7 ) Net investment in leases 251.8 262.3 Current maturities of lease receivables 126.1 129.6 Less—allowance for doubtful accounts (0.6 ) (0.5 ) Current portion of lease receivables—net of allowance 125.5 129.1 Lease receivables—noncurrent $ 126.3 $ 133.2 The amounts to be received on lease receivables as of September 30, 2019 were as follows: (in millions) September 30, 2019 Remaining 2019 $ 35.8 2020 142.8 2021 75.7 2022 30.6 2023 0.2 2024 and thereafter — Total undiscounted lease cash flows 285.1 Amount representing interest (33.3 ) Present value of lease receivables 251.8 Current lease receivables, net of allowance (125.5 ) Long-term lease receivable $ 126.3 Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon receipt of notification of bankruptcy, upon the death of a customer, or in other instances in which management concludes collectability is not reasonably assured. The accrual of interest and other fees is resumed when all payments are less than 60 days past due. At September 30, 2019 , there were $0.3 million of lease payments greater than 90 days past due. The terms of the lease agreements generally give us the ability to take possession of the underlying asset in the event of default. We may incur credit losses in excess of recorded allowances if the full amount of any anticipated proceeds from the sale or re-lease of the asset supporting the third party’s financial obligation is not realized. Repossession and estimated reconditioning costs are recorded in the consolidated statements of comprehensive income in the period incurred. Our lease payments primarily include base rentals and guaranteed residual values. In addition, we also collect one-time administrative fees and heavy vehicle use tax on our leases. We have elected to not separate the different components within the contract as the administrative fees were not material for the three and nine months ended September 30, 2019 . We have also elected to exclude all taxes assessed by a governmental authority from the consideration (e.g., heavy vehicle use tax). All of our leases require fixed payments, therefore we have no variable payment provisions. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This is estimated to approximate the fair value of the equipment. Equipment is leased under sales-type leases where the lessees guarantee the residual value of the equipment. The table below provides additional information on our sales-type leases. Three Months Ended Nine Months Ended (in millions) 2019 2019 Revenue $ 50.9 $ 159.8 Cost of goods sold (46.8 ) (144.0 ) Operating profit $ 4.1 $ 15.8 Interest income on lease receivable $ 7.0 $ 20.4 Initial direct cost incurred — — The amounts to be received on lease receivables as of December 31, 2018 under ASC 840 were as follows: (in millions) December 31, 2018 2019 $ 149.0 2020 112.7 2021 29.0 2022 0.3 2023 — 2024 and thereafter — Total $ 291.0 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE RECOGNITION Disaggregated Revenues The majority of our revenues are related to transportation and have similar characteristics. The following table summarizes our revenues by type of service, and each type of service is further described below. Three Months Ended Nine Months Ended Disaggregated Revenues (in millions) 2019 2018 2019 2018 Transportation $ 1,093.9 $ 1,175.0 $ 3,297.7 $ 3,362.9 Logistics management 32.3 57.7 120.1 163.7 Other 57.7 47.4 172.9 128.8 Total operating revenues $ 1,183.9 $ 1,280.1 $ 3,590.7 $ 3,655.4 Transportation Transportation revenues relate to the Truckload and Intermodal reportable segments, as well as to our brokerage business, which is included in the Logistics reportable segment. In the Transportation portfolio, our service obligation to customers is satisfied over time. We do not believe there is a significant impact on the nature, amount, timing, and uncertainty of revenue or cash flows based on the mode of transportation. The economic factors that impact our transportation revenue are generally consistent across these modes given the relatively short-term nature of each contract. For the majority of our transportation business, the “contract with a customer” is identified as an individual order under a negotiated agreement. Some consideration is variable in that a final transaction price is uncertain and is susceptible to factors outside of Schneider's influence, such as the weather or the accumulation of accessorial charges. Pricing information is supplied by rate schedules that accompany negotiated contracts. Logistics Management Logistics Management revenues relate to our Supply Chain Management and Import/Export Services operating segments, both of which are included in our Logistics reportable segment. Within this portfolio, the key service we provide to the customer is management of freight shipping and/or storage. Other Other revenues relate to activities that are out of scope for purposes of ASC 606, including our leasing and captive insurance businesses. Quantitative Disclosure The following table provides information related to transactions and expected timing of revenue recognition related to performance obligations that are fixed in nature and relate to contracts with terms greater than one year as of date shown: Remaining Performance Obligations (in millions) September 30, 2019 Expected to be recognized within one year Transportation $ 10.5 Logistics Management 8.6 Expected to be recognized after one year Transportation 1.3 Logistics Management 6.9 Total $ 27.3 This disclosure does not include revenue related to performance obligations that are part of a contract whose original expected duration is one year or less. In addition, this disclosure does not include expected consideration related to performance obligations for which the Company elects to recognize revenue in the amount it has a right to invoice (e.g., usage-based pricing terms). The following table provides information related to contract balances associated with our contracts with customers as of the dates shown. Contract Balances ( in millions ) September 30, 2019 December 31, 2018 Other current assets - Contract assets $ 25.8 $ 21.7 Other current liabilities - Contract liabilities — — We generally receive payment within 40 days of completion of performance obligations. Contract assets in the table above relate to revenue in-transit at the end of the reporting period. Contract liabilities relate to amounts that customers paid in advance of the associated service. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE Fair value focuses on the estimated price that would be received to sell an asset or paid to transfer a liability, which is referred to as the exit price. Inputs to valuation techniques used to measure fair value fall into three broad levels (Levels 1, 2, and 3) as follows: Level 1 —Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that we have the ability to access at the measurement date. Level 2 —Observable inputs, other than quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities. Level 3 —Unobservable inputs reflecting the reporting entity’s estimates of the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. All marketable securities were valued based on quoted prices for similar assets in active markets or quoted prices for identical or similar assets in markets that are not active (Level 2 in the fair value hierarchy). We measure our marketable securities on a recurring, monthly basis. See Note 5 , Investments , for information on the fair value of our marketable securities. In connection with the June 1, 2016 acquisition of WSL, a contingent payment arrangement based on the achievement of specified earnings targets was in place for three consecutive 12-month periods after the closing, with the aggregate payment total not to exceed $40.0 million. No payments were made under the agreement which expired June 30, 2019, and the balance as of December 31, 2018 was zero. Our ownership interest in PSI discussed in Note 5 , Investments , was valued based on Level 3 inputs. There were no transfers between levels for the periods shown. Fair Value of Other Financial Instruments The recorded value of cash, trade accounts receivable, lease receivables, and trade accounts payable approximates fair value. The table below presents the carrying value of our debt portfolio along with the fair value of a fixed-rate debt portfolio with similar terms and maturities, which is based on borrowing rates available to us in the applicable year. This valuation used Level 2 inputs. September 30, 2019 December 31, 2018 (in millions) Carrying Value Fair Value Carrying Value Fair Value Fixed-rate debt portfolio $ 401.3 $ 408.9 $ 405.0 $ 398.4 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments Schedule [Abstract] | |
Investment [Text Block] | INVESTMENTS Marketable Securities Our marketable securities are classified as available for sale and carried at fair value in current assets on the consolidated balance sheets. Our portfolio of securities has maturities ranging from 3 to 81 months . While our intent is to hold our securities to maturity, sudden changes in the market or to our liquidity needs may cause us to sell certain securities in advance of their maturity date. Any unrealized gains and losses, net of tax, are included as a component of accumulated other comprehensive loss on the consolidated balance sheets, unless we determine that an unrealized loss is other-than-temporary. If we determine that an unrealized loss is other-than-temporary, we recognize the loss in earnings. We did not have any other-than-temporary impairments for either of the periods ended September 30, 2019 and 2018 . Cost basis is determined using the specific identification method. The following table presents the values of our marketable securities as of the dates shown: September 30, 2019 December 31, 2018 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Zero coupon bonds $ 2.0 $ 2.0 $ 3.9 $ 3.9 U.S. treasury and government agencies 19.0 19.0 20.0 19.8 Asset-backed securities 0.1 0.1 0.1 0.1 Corporate debt securities 14.1 14.5 15.1 15.0 State and municipal bonds 11.6 11.8 12.5 12.5 Total marketable securities $ 46.8 $ 47.4 $ 51.6 $ 51.3 Gross realized gains and losses on marketable securities were not material for the three and nine months ended September 30, 2019 and 2018 . Gross unrealized gains and losses on marketable securities were not material for the periods ended September 30, 2019 , and December 31, 2018 . Ownership Interest in Platform Science, Inc. In 2018, we acquired a 30% ownership interest in PSI in exchange for granting PSI a non-exclusive license to our proprietary telematics mobile software that was developed to enable driver productivity and ensure regulatory compliance. Our ownership interest in PSI is being accounted for under ASC 321, Investments - Equity Securities and is recorded at fair value in other noncurrent assets on the consolidated balance sheets. The fair value of the ownership interest as of December 31, 2018 was determined to be $3.5 million through an independent valuation. As of September 30, 2019 , there have been no transactions that would indicate that the value of our ownership interest in PSI changed. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of the purchase price of our acquisitions over the fair value of the identifiable net assets acquired. Changes in the carrying amount of goodwill were as follows: (in millions) Truckload Logistics Other Total Balance at December 31, 2018 $ 138.2 $ 14.2 $ 9.8 $ 162.2 Goodwill impairment charge (34.6 ) — — (34.6 ) Foreign currency translation — — (0.3 ) (0.3 ) Balance at September 30, 2019 $ 103.6 $ 14.2 $ 9.5 $ 127.3 At September 30, 2019 and December 31, 2018 , we had accumulated goodwill impairment charges of $42.6 million and $8.0 million , respectively. Goodwill is tested for impairment at least annually using both the discounted cash flow method and the guideline public company method in calculating the fair values of our reporting units. Key inputs used in the discounted cash flow approach include growth rates for sales and operating profit, perpetuity growth assumptions, and discount rates. As interest rates rise, the calculated fair values of our reporting units will decrease, which could impact the results of our goodwill impairment tests. A triggering event occurred during the second quarter of 2019 as results from our FTFM reporting unit continued to be less than projected, despite sustained investments and operational changes designed to improve efficiencies. Because of this triggering event, an impairment test was performed for the FTFM reporting unit. As a result of the testing performed, an impairment loss of $ 34.6 million was recorded for our FTFM reporting unit as the discounted cash flows expected to be generated by this reporting unit were not sufficient to recover its carrying value. This represents all of the goodwill related to the FTFM reporting unit. The identifiable intangible assets other than goodwill listed below are included in capitalized software and other noncurrent assets on the consolidated balance sheets. (in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Balance at September 30, 2019 Customer lists $ 1.1 $ 1.1 $ — Trade name — — — Total intangible assets 1.1 1.1 — Balance at December 31, 2018 Customer lists 10.5 3.5 7.0 Trade name 1.4 1.2 0.2 Total intangible assets $ 11.9 $ 4.7 $ 7.2 As part of the shutdown of our FTFM service offering in the third quarter of 2019, we wrote-off the gross carrying amount of the customer lists and trade name obtained through the WSL acquisition. An impairment charge of $6.5 million was recorded for the unamortized value of the customer lists in the three months ended September 30, 2019 . The impairment charge is included in the consolidated statements of comprehensive income within restructuring charges. Refer to Note 13 , Restructuring Charges , for additional details. Amortization expense for intangible assets was $0.1 million and $0.3 million for the three months ended September 30, 2019 and September 30, 2018 , respectively, and $0.7 million and $1.1 million for the nine months ended September 30, 2019 and 2018 , respectively. Accumulated amortization in the table above includes foreign currency translation related to a customer list. |
Debt and Credit Facilities
Debt and Credit Facilities | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES As of September 30, 2019 and December 31, 2018 , debt included the following: (in millions) September 30, 2019 December 31, 2018 Unsecured senior notes: principal payable at maturities ranging from 2019 through 2025; interest payable in semiannual installments through the same timeframe; weighted-average interest rate of 3.36% for both 2019 and 2018 $ 400.0 $ 400.0 Equipment financing notes: principal and interest payable in monthly installments through 2019; weighted average interest rate of 3.98% and 3.72% for 2019 and 2018, respectively 1.3 5.0 Total principal outstanding 401.3 405.0 Current maturities (96.2 ) (45.0 ) Debt issuance costs (0.5 ) (0.6 ) Long-term debt $ 304.6 $ 359.4 Our Credit Agreement (the “2018 Credit Facility”) provides borrowing capacity of $250.0 million and allows us to request an increase in total commitment by up to $150.0 million, for a total potential commitment of $400.0 million through August 2023. The agreement also provides a sublimit of $ 100.0 million to be used for the issuance of letters of credit. We had no outstanding borrowings under this agreement as of September 30, 2019 or December 31, 2018 . Standby letters of credit under this agreement amounted to $3.9 million at September 30, 2019 and December 31, 2018 and were primarily related to the requirements of certain of our real estate leases. We also have a Receivables Purchase Agreement (the “2018 Receivables Purchase Agreement”) that allows us to borrow funds against qualifying trade receivables at rates based on one-month LIBOR up to $200.0 million and provides for the issuance of standby letters of credit through September 2021. We had no outstanding borrowings under this facility at September 30, 2019 or December 31, 2018 . At September 30, 2019 and December 31, 2018 , standby letters of credit under this agreement amounted to $70.3 million and $65.3 million , respectively, and were primarily related to the requirements of certain of our insurance obligations. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective income tax rate was 26.2% and 25.8% for the three months ended September 30, 2019 and 2018 , respectively, and 25.3% and 25.8% for the nine months ended September 30, 2019 and 2018 |
Common Equity
Common Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Common Equity | COMMON EQUITY Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended Nine Months Ended (in millions, except per share data) 2019 2018 2019 2018 Numerator: Net income available to common shareholders $ 19.7 $ 70.7 $ 91.1 $ 184.1 Denominator: Weighted average common shares outstanding 177.1 177.0 177.1 177.0 Effect of dilutive restricted share units 0.2 0.2 0.2 0.2 Weighted average diluted common shares outstanding 177.3 177.2 177.3 177.2 Basic earnings per common share $ 0.11 $ 0.40 $ 0.51 $ 1.04 Diluted earnings per common share 0.11 0.40 0.51 1.04 The calculation of diluted earnings per share for the three and nine months ended September 30, 2019 excluded an immaterial amount of share-based compensation awards that had an anti-dilutive effect. Subsequent Event - Dividends Declared In October of 2019, our Board of Directors declared a quarterly cash dividend for the fourth fiscal quarter of 2019 in the amount of $0.06 per share to holders of our Class A and Class B common stock. The dividend is payable to shareholders of record at the close of business on December 13, 2019 and is expected to be paid on January 9, 2020. |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | SHARE-BASED COMPENSATION We grant various equity-based awards relating to Class B Common Stock under our 2017 Omnibus Incentive Plan (“the Plan”). These awards consist of the following: restricted shares, restricted stock units (“RSUs”), performance-based restricted shares (“Performance Shares”), performance-based restricted stock units (“PSUs”), and non-qualified stock options. During the three months ended September 30, 2019 , we recognized a net benefit of $ 2.4 million for our share based compensation plans due to the reduction in the anticipated payout of performance-based awards. There was no share-based compensation expense for the nine months ended September 30, 2019 . Share-based compensation expense was $ 2.1 million and $6.3 million for the three and nine months ended September 30, 2018 , respectively. We recognize share-based compensation expense over the awards' vesting period. As of September 30, 2019 , we had $11.3 million of pre-tax unrecognized compensation cost related to outstanding share-based compensation awards expected to be recognized over a weighted-average period of 2.7 years. The Black-Scholes valuation model is used by the Company to determine the grant date fair value of option awards. The Company uses its stock price on the grant date as the fair value assigned to the restricted shares, RSUs, performance shares, and PSUs. Performance shares and PSUs are earned based on attainment of threshold performance of return on capital and earnings or net income targets. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES In the ordinary course of conducting our business we become involved in certain legal matters and investigations including liability claims, taxes other than income taxes, contract disputes, employment, and other litigation matters. We accrue for anticipated costs to resolve matters that are probable and estimable. We believe the outcomes of these matters will not have a material impact on our business or our consolidated financial statements. We record liabilities for claims accruals based on our best estimate of expected losses. The primary claims arising for the Company consist of accident-related claims for personal injury, collision, and comprehensive compensation, in addition to workers' compensation and cargo liability claims. We maintain insurance with licensed insurance carriers above the amounts in which we self-insure. We review our accruals periodically to ensure that the aggregate amounts of our accruals are appropriate at any period after consideration of available insurance coverage. Although it is possible that our claims accruals will change based on future developments, we do not believe these changes will be material to our results of operations considering our insurance coverage and other factors. At September 30, 2019 , our firm commitments to purchase transportation equipment totaled approximately $278.1 million. The representative of the former owners of WSL has filed a lawsuit in the Delaware Court of Chancery which alleges that we have not fulfilled certain obligations under the purchase and sale agreement relating to the post-closing operations of the business, and as a result, the former owners claim they are entitled to an additional payment of $40.0 million . For additional information on this contingent payment see Note 4, Fair Value |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING We have three reportable segments – Truckload, Intermodal, and Logistics – which are based primarily on the services each segment provides. As of December 31, 2018, our operating segments within the Truckload reportable segment were VTL, FTFM, and Bulk. On July 29, 2019 the Board of Directors approved a structured shutdown of our FTFM service offering, which was included within our FTFM operating segment. Once the shutdown of the FTFM service offering is complete, there will be two operating segments within the Truckload reportable segment, VTL and Bulk. The CODM reviews revenues for each operating segment without the inclusion of fuel surcharge revenues. For segment purposes, any fuel surcharge revenues earned are recorded as a reduction of the segment’s fuel expenses. Income from operations at a segment level reflects the measures presented to the CODM for each segment. Separate balance sheets are not prepared by segment, and, as a result, assets are not separately identifiable by segment. All transactions between reporting segments are eliminated in consolidation. The following tables summarize our segment information. Intersegment revenues were immaterial for all segments, with the exception of Other, which includes revenues from insurance premiums charged to other segments for workers’ compensation, auto, and other types of insurance. Intersegment revenues included in Other revenues below were $20.8 million and $20.7 million for the three months ended September 30, 2019 and 2018 , respectively, and $66.8 million and $62.0 million for the nine months ended September 30, 2019 and 2018 , respectively. Revenues by Segment Three Months Ended Nine Months Ended (in millions) 2019 2018 2019 2018 Truckload $ 515.6 $ 566.9 $ 1,582.3 $ 1,685.0 Intermodal 249.2 254.4 746.6 688.0 Logistics 236.1 271.8 707.0 743.7 Other 94.3 83.9 290.0 237.0 Fuel surcharge 114.2 134.9 350.2 385.8 Inter-segment eliminations (25.5 ) (31.8 ) (85.4 ) (84.1 ) Operating revenues $ 1,183.9 $ 1,280.1 $ 3,590.7 $ 3,655.4 Income (Loss) from Operations by Segment Three Months Ended Nine Months Ended (in millions) 2019 2018 2019 2018 Truckload (1) $ (12.5 ) $ 54.4 $ 18.6 $ 162.2 Intermodal 25.1 36.1 75.5 90.7 Logistics 9.9 13.0 29.4 31.2 Other 6.5 (5.6 ) 6.2 (26.9 ) Income from operations $ 29.0 $ 97.9 $ 129.7 $ 257.2 (1) Included within Truckload (loss) income from operations for the three and nine months ended September 30, 2019 were $50.4 million of restructuring charges associated with the shutdown of the FTFM service offering and an $11.5 million impairment on assets held for sale related to an agreement the Company signed in the third quarter of 2019 to sell tractors in the fourth quarter. The impairment on assets held for sale was recorded within operating supplies and expenses in the consolidated statements of comprehensive income. An additional $34.6 million goodwill impairment charge related to the FTFM reporting unit was recorded within Truckload income from operations for the nine months ended September 30, 2019 . Depreciation and Amortization Expense by Segment Three Months Ended Nine Months Ended (in millions) 2019 2018 2019 2018 Truckload $ 53.2 $ 52.6 $ 161.5 $ 157.3 Intermodal 11.3 10.3 33.2 29.0 Logistics 0.2 0.1 0.5 0.3 Other 9.4 10.3 27.2 30.3 Depreciation and amortization expense $ 74.1 $ 73.3 $ 222.4 $ 216.9 Substantially all of our revenues and assets were generated or located within the United States. In 2019, we began recognizing in-transit revenues and related expenses at the reporting segment level for all operating segments to better align revenues and costs within our reporting segments. Prior to 2019, revenues at the operating segment level reflected revenue recognized upon delivery, and in-transit revenue was recorded within Other, except for FTFM. For consistency, we have restated the 2018 revenue and income (loss) from operations by segment in the tables above to reflect this new measure of revenue and segment profit. The tables below reflect the impact of this change by reporting segment on revenues (excluding fuel surcharge) and income (loss) from operations. Increase (Decrease) in Revenues (excluding fuel surcharge) by Segment Three Months Ended Nine Months Ended (in millions) 2018 2018 Truckload $ 1.9 $ — Intermodal 2.3 7.0 Logistics 3.1 4.5 Other (7.3 ) (11.5 ) Total $ — $ — Increase (Decrease) in Income (Loss) from Operations by Segment Three Months Ended Nine Months Ended (in millions) 2018 2018 Truckload $ 1.3 $ (0.6 ) Intermodal — 2.0 Logistics 0.5 0.8 Other (1.8 ) (2.2 ) Total $ — $ — |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring Cost and Reserve | |
Restructuring and Related Activities Disclosure | RESTRUCTURING CHARGES On July 29, 2019 the Company’s Board of Directors approved a structured shutdown of its FTFM service offering within its Truckload reporting segment which was substantially complete as of August 31, 2019 . As part of the shutdown, $50.4 million of restructuring charges were incurred during the third quarter of 2019 . Combined with anticipated future shutdown costs, the Company will be at the lower end of its estimated range of $50.0 million to $75.0 million . All of the restructuring charges were recorded within our Truckload reporting segment. Pre-tax losses of our FTFM service offering were $8.9 million and $9.7 million for the three months ended September 30, 2019 and 2018 , respectively and $34.2 million and $19.3 million for the nine months ended September 30, 2019 and 2018 , respectively. The costs associated with the shutdown are presented separately on the consolidated statements of comprehensive income within restructuring charges and are summarized in the following table for the three and nine months ended September 30, 2019 : (in millions) September 30, 2019 Impairment charges $ 35.7 Receivables write-down 7.6 Other costs 7.1 Total restructuring charges $ 50.4 As part of our assessment of impairment charges during the quarter ended September 30, 2019 , we recorded at fair value $50.6 million of transportation equipment using market data and $13.6 million of right-of-use lease assets using discounted cash flow analyses. As a result of the above, we utilized level 3 inputs in calculating the fair value. These assets, less the cost to sell, are recorded within prepaid expenses and other current assets and other noncurrent assets, respectively, on the consolidated balance sheets as of September 30, 2019 . As of December 31, 2018 and September 30, 2019 , FTFM restructuring liabilities are classified as current liabilities on the consolidated balance sheets and balances are as follows: (in millions) Restructuring Liabilities Balance at December 31, 2018 $ — Restructuring charges 7.1 Cash payments (5.2 ) Balance at September 30, 2019 $ 1.9 The required criteria, as defined by ASC 360, Property, Plant and Equipment, was satisfied as part of the shutdown of our FTFM service offering for reclassification of related transportation equipment into assets held for sale. The following table presents information on assets held for sale as of December 31, 2018 and September 30, 2019 within our Truckload segment. As of September 30, 2019 , $50.6 million of the assets held for sale balance relates to the shutdown of our FTFM service offering. Assets held for sale, net of impairment, are included in prepaid expenses and other current assets in the consolidated balance sheets. (in millions) September 30, 2019 December 31, 2018 Truckload $ 119.2 $ 19.5 |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business In this report, when we refer to “the Company,” “us,” “we,” “our,” “ours,” or “Schneider,” we are referring to Schneider National, Inc. and its subsidiaries. We are a leading transportation services organization headquartered in Green Bay, Wisconsin. We provide a broad portfolio of premier truckload, intermodal, and logistics solutions and operate one of the largest trucking fleets in North America. |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with GAAP and the rules and regulations of the SEC applicable to quarterly reports on Form 10-Q. Therefore, these consolidated financial statements and footnotes do not include all disclosures required by GAAP for annual financial statements. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Financial results for an interim period are not necessarily indicative of the results for a full year. All intercompany transactions have been eliminated in consolidation. In the opinion of management, these statements reflect all adjustments (consisting only of normal recurring adjustments) necessary for the fair presentation of our financial results for the interim periods presented. |
Accounting Standards Issued But Not Yet Adopted | Accounting Standards Issued but Not Yet Adopted In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with the existing capitalization requirements for implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for us as of January 1, 2020 with early adoption permitted. We are currently evaluating the impact the adoption of this ASU will have on our consolidated financial statements and do not believe the impact will be material. We expect to adopt this standard on a prospective basis. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Requirements, which removes, modifies, and adds certain disclosure requirements for fair value measurements. These changes include removing the disclosure requirements related to the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and adding disclosure requirements about the range and weighted - average of significant unobservable inputs used to develop Level 3 fair value measurements. Additionally, the amendments remove the phrase “at a minimum” from the codification clarifying that materiality should be considered when evaluating disclosure requirements. ASU 2018-13 is effective for us January 1, 2020 with early adoption permitted. We do not believe the adoption of this ASU will have a material impact on our disclosures and plan to early adopt this standard during the fourth quarter of 2019. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which requires companies to use a forward-looking, expected loss model to estimate credit losses on various types of financial assets and net investments in leases. It also requires additional disclosures related to credit quality of trade and other receivables, including information related to management’s estimate of credit allowances. In November 2018, this was further updated with the issuance of ASU 2018-19, which excludes receivables from operating leases from the scope. ASU 2016-13 is effective for us January 1, 2020. We expect the standard will have an impact on our available-for-sale debt securities, net investment in leases, contract assets, trade accounts receivable, and reinsurance receivables. Based on our initial assessment, we do not believe the standard will have a material impact on our consolidated financial statements, however we are still assessing the financial impacts. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Net Lease Costs and Other Lease Information | The following table presents our net lease costs for the three and nine months ended September 30, 2019 : Financial Statement Classification Three Months Ended Nine Months Ended (in millions) 2019 2019 Operating lease cost Operating lease cost Operating supplies and expenses $ 8.7 $ 26.5 Short-term lease cost (1) Operating supplies and expenses 2.0 5.5 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 0.9 2.5 Interest on lease liabilities Interest expense — 0.2 Variable lease cost Operating supplies and expenses 0.7 2.1 Sublease income Operating revenues (1.5 ) (4.1 ) Total net lease cost $ 10.8 $ 32.7 (1) Includes short-term lease costs for leases twelve months or less, including those with a duration of one month or less. As of September 30, 2019 , remaining lease terms and discount rates under operating and finance leases were as follows: September 30, 2019 Weighted-average remaining lease term Operating leases 4.4 years Finance leases 0.3 years Weighted-average discount rate Operating leases 4.2 % Finance leases 4.7 % Other information related to our leases is as follows: Nine Months Ended (in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 26.7 Operating cash flows from finance leases 0.2 Financing cash flows from finance leases 2.0 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 20.6 Finance leases — Operating lease right-of-use assets, current operating lease liabilities, and noncurrent operating lease liabilities are included in capitalized software and other noncurrent assets, other current liabilities, and other noncurrent liabilities, respectively, in the consolidated balance sheet as of September 30, 2019 . |
Schedule of Future Minimum Lease Payments for Operating Leases | At September 30, 2019 , future lease payments under operating and finance leases were as follows: (in millions) Operating Leases Finance Leases Remaining 2019 $ 8.5 $ 4.9 2020 27.2 0.4 2021 17.1 — 2022 11.1 — 2023 8.8 — 2024 and thereafter 15.9 — Total 88.6 5.3 Amount representing interest (7.7 ) — Present value of lease payments 80.9 5.3 Current maturities (27.1 ) (5.3 ) Long-term lease obligations $ 53.8 $ — |
Schedule of Future Minimum Lease Payments for Finance Leases | At September 30, 2019 , future lease payments under operating and finance leases were as follows: (in millions) Operating Leases Finance Leases Remaining 2019 $ 8.5 $ 4.9 2020 27.2 0.4 2021 17.1 — 2022 11.1 — 2023 8.8 — 2024 and thereafter 15.9 — Total 88.6 5.3 Amount representing interest (7.7 ) — Present value of lease payments 80.9 5.3 Current maturities (27.1 ) (5.3 ) Long-term lease obligations $ 53.8 $ — |
Schedule of Future Minimum Rental Payments for Operating Leases (ASC 840) | Under ASC 840, future minimum lease payments as of December 31, 2018 were as follows: (in millions) Operating Leases Capital Leases 2019 $ 35.8 $ 6.9 2020 25.7 0.2 2021 14.9 — 2022 8.4 — 2023 6.8 — 2024 and thereafter 12.7 — Total $ 104.3 7.1 Amount representing interest (0.2 ) Present value of minimum lease payments 6.9 Current maturities (6.7 ) Long-term capital lease obligations $ 0.2 |
Schedule of Future Minimum Lease Payments for Capital Leases (ASC 840) | Under ASC 840, future minimum lease payments as of December 31, 2018 were as follows: (in millions) Operating Leases Capital Leases 2019 $ 35.8 $ 6.9 2020 25.7 0.2 2021 14.9 — 2022 8.4 — 2023 6.8 — 2024 and thereafter 12.7 — Total $ 104.3 7.1 Amount representing interest (0.2 ) Present value of minimum lease payments 6.9 Current maturities (6.7 ) Long-term capital lease obligations $ 0.2 |
Schedule of Finance Lease Right-of-Use Assets | The consolidated balance sheets include right-of-use assets acquired under finance leases as components of property and equipment as of September 30, 2019 and January 1, 2019, as follows: (in millions) September 30, 2019 January 1, 2019 Transportation equipment $ 19.9 $ 19.9 Real property 0.8 0.8 Other property 1.5 0.6 Accumulated amortization (13.1 ) (11.2 ) Total $ 9.1 $ 10.1 |
Schedule of Investment in Lease Receivables | As of September 30, 2019 and January 1, 2019, the investment in lease receivables was as follows: September 30, 2019 January 1, 2019 Future minimum payments to be received on leases $ 146.9 $ 140.0 Guaranteed residual lease values 138.2 151.0 Total minimum lease payments to be received 285.1 291.0 Unearned income (33.3 ) (28.7 ) Net investment in leases 251.8 262.3 Current maturities of lease receivables 126.1 129.6 Less—allowance for doubtful accounts (0.6 ) (0.5 ) Current portion of lease receivables—net of allowance 125.5 129.1 Lease receivables—noncurrent $ 126.3 $ 133.2 |
Schedule of Principal Amounts to be Received on Lease Receivables | The amounts to be received on lease receivables as of September 30, 2019 were as follows: (in millions) September 30, 2019 Remaining 2019 $ 35.8 2020 142.8 2021 75.7 2022 30.6 2023 0.2 2024 and thereafter — Total undiscounted lease cash flows 285.1 Amount representing interest (33.3 ) Present value of lease receivables 251.8 Current lease receivables, net of allowance (125.5 ) Long-term lease receivable $ 126.3 |
Schedule of Sales-type Lease Income | The table below provides additional information on our sales-type leases. Three Months Ended Nine Months Ended (in millions) 2019 2019 Revenue $ 50.9 $ 159.8 Cost of goods sold (46.8 ) (144.0 ) Operating profit $ 4.1 $ 15.8 Interest income on lease receivable $ 7.0 $ 20.4 Initial direct cost incurred — — |
Schedule of Principal Amounts to be Received on Lease Receivables (ASC 840) | The amounts to be received on lease receivables as of December 31, 2018 under ASC 840 were as follows: (in millions) December 31, 2018 2019 $ 149.0 2020 112.7 2021 29.0 2022 0.3 2023 — 2024 and thereafter — Total $ 291.0 |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table summarizes our revenues by type of service, and each type of service is further described below. Three Months Ended Nine Months Ended Disaggregated Revenues (in millions) 2019 2018 2019 2018 Transportation $ 1,093.9 $ 1,175.0 $ 3,297.7 $ 3,362.9 Logistics management 32.3 57.7 120.1 163.7 Other 57.7 47.4 172.9 128.8 Total operating revenues $ 1,183.9 $ 1,280.1 $ 3,590.7 $ 3,655.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The following table provides information related to transactions and expected timing of revenue recognition related to performance obligations that are fixed in nature and relate to contracts with terms greater than one year as of date shown: Remaining Performance Obligations (in millions) September 30, 2019 Expected to be recognized within one year Transportation $ 10.5 Logistics Management 8.6 Expected to be recognized after one year Transportation 1.3 Logistics Management 6.9 Total $ 27.3 |
Contract with Customer, Asset and Liability [Table Text Block] | The following table provides information related to contract balances associated with our contracts with customers as of the dates shown. Contract Balances ( in millions ) September 30, 2019 December 31, 2018 Other current assets - Contract assets $ 25.8 $ 21.7 Other current liabilities - Contract liabilities — — |
Fair Value Fair Value (Tables)
Fair Value Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | The table below presents the carrying value of our debt portfolio along with the fair value of a fixed-rate debt portfolio with similar terms and maturities, which is based on borrowing rates available to us in the applicable year. This valuation used Level 2 inputs. September 30, 2019 December 31, 2018 (in millions) Carrying Value Fair Value Carrying Value Fair Value Fixed-rate debt portfolio $ 401.3 $ 408.9 $ 405.0 $ 398.4 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments Schedule [Abstract] | |
Schedule of Marketable Securities | The following table presents the values of our marketable securities as of the dates shown: September 30, 2019 December 31, 2018 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Zero coupon bonds $ 2.0 $ 2.0 $ 3.9 $ 3.9 U.S. treasury and government agencies 19.0 19.0 20.0 19.8 Asset-backed securities 0.1 0.1 0.1 0.1 Corporate debt securities 14.1 14.5 15.1 15.0 State and municipal bonds 11.6 11.8 12.5 12.5 Total marketable securities $ 46.8 $ 47.4 $ 51.6 $ 51.3 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill were as follows: (in millions) Truckload Logistics Other Total Balance at December 31, 2018 $ 138.2 $ 14.2 $ 9.8 $ 162.2 Goodwill impairment charge (34.6 ) — — (34.6 ) Foreign currency translation — — (0.3 ) (0.3 ) Balance at September 30, 2019 $ 103.6 $ 14.2 $ 9.5 $ 127.3 |
Schedule of Finite-Lived Intangible Assets | The identifiable intangible assets other than goodwill listed below are included in capitalized software and other noncurrent assets on the consolidated balance sheets. (in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Balance at September 30, 2019 Customer lists $ 1.1 $ 1.1 $ — Trade name — — — Total intangible assets 1.1 1.1 — Balance at December 31, 2018 Customer lists 10.5 3.5 7.0 Trade name 1.4 1.2 0.2 Total intangible assets $ 11.9 $ 4.7 $ 7.2 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Debt | As of September 30, 2019 and December 31, 2018 , debt included the following: (in millions) September 30, 2019 December 31, 2018 Unsecured senior notes: principal payable at maturities ranging from 2019 through 2025; interest payable in semiannual installments through the same timeframe; weighted-average interest rate of 3.36% for both 2019 and 2018 $ 400.0 $ 400.0 Equipment financing notes: principal and interest payable in monthly installments through 2019; weighted average interest rate of 3.98% and 3.72% for 2019 and 2018, respectively 1.3 5.0 Total principal outstanding 401.3 405.0 Current maturities (96.2 ) (45.0 ) Debt issuance costs (0.5 ) (0.6 ) Long-term debt $ 304.6 $ 359.4 |
Common Equity (Tables)
Common Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended Nine Months Ended (in millions, except per share data) 2019 2018 2019 2018 Numerator: Net income available to common shareholders $ 19.7 $ 70.7 $ 91.1 $ 184.1 Denominator: Weighted average common shares outstanding 177.1 177.0 177.1 177.0 Effect of dilutive restricted share units 0.2 0.2 0.2 0.2 Weighted average diluted common shares outstanding 177.3 177.2 177.3 177.2 Basic earnings per common share $ 0.11 $ 0.40 $ 0.51 $ 1.04 Diluted earnings per common share 0.11 0.40 0.51 1.04 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Prior Period Adjustments | The tables below reflect the impact of this change by reporting segment on revenues (excluding fuel surcharge) and income (loss) from operations. Increase (Decrease) in Revenues (excluding fuel surcharge) by Segment Three Months Ended Nine Months Ended (in millions) 2018 2018 Truckload $ 1.9 $ — Intermodal 2.3 7.0 Logistics 3.1 4.5 Other (7.3 ) (11.5 ) Total $ — $ — Increase (Decrease) in Income (Loss) from Operations by Segment Three Months Ended Nine Months Ended (in millions) 2018 2018 Truckload $ 1.3 $ (0.6 ) Intermodal — 2.0 Logistics 0.5 0.8 Other (1.8 ) (2.2 ) Total $ — $ — |
Summary of Segment Reporting Information | The following tables summarize our segment information. Intersegment revenues were immaterial for all segments, with the exception of Other, which includes revenues from insurance premiums charged to other segments for workers’ compensation, auto, and other types of insurance. Intersegment revenues included in Other revenues below were $20.8 million and $20.7 million for the three months ended September 30, 2019 and 2018 , respectively, and $66.8 million and $62.0 million for the nine months ended September 30, 2019 and 2018 , respectively. Revenues by Segment Three Months Ended Nine Months Ended (in millions) 2019 2018 2019 2018 Truckload $ 515.6 $ 566.9 $ 1,582.3 $ 1,685.0 Intermodal 249.2 254.4 746.6 688.0 Logistics 236.1 271.8 707.0 743.7 Other 94.3 83.9 290.0 237.0 Fuel surcharge 114.2 134.9 350.2 385.8 Inter-segment eliminations (25.5 ) (31.8 ) (85.4 ) (84.1 ) Operating revenues $ 1,183.9 $ 1,280.1 $ 3,590.7 $ 3,655.4 Income (Loss) from Operations by Segment Three Months Ended Nine Months Ended (in millions) 2019 2018 2019 2018 Truckload (1) $ (12.5 ) $ 54.4 $ 18.6 $ 162.2 Intermodal 25.1 36.1 75.5 90.7 Logistics 9.9 13.0 29.4 31.2 Other 6.5 (5.6 ) 6.2 (26.9 ) Income from operations $ 29.0 $ 97.9 $ 129.7 $ 257.2 (1) Included within Truckload (loss) income from operations for the three and nine months ended September 30, 2019 were $50.4 million of restructuring charges associated with the shutdown of the FTFM service offering and an $11.5 million impairment on assets held for sale related to an agreement the Company signed in the third quarter of 2019 to sell tractors in the fourth quarter. The impairment on assets held for sale was recorded within operating supplies and expenses in the consolidated statements of comprehensive income. An additional $34.6 million goodwill impairment charge related to the FTFM reporting unit was recorded within Truckload income from operations for the nine months ended September 30, 2019 . Depreciation and Amortization Expense by Segment Three Months Ended Nine Months Ended (in millions) 2019 2018 2019 2018 Truckload $ 53.2 $ 52.6 $ 161.5 $ 157.3 Intermodal 11.3 10.3 33.2 29.0 Logistics 0.2 0.1 0.5 0.3 Other 9.4 10.3 27.2 30.3 Depreciation and amortization expense $ 74.1 $ 73.3 $ 222.4 $ 216.9 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The costs associated with the shutdown are presented separately on the consolidated statements of comprehensive income within restructuring charges and are summarized in the following table for the three and nine months ended September 30, 2019 : (in millions) September 30, 2019 Impairment charges $ 35.7 Receivables write-down 7.6 Other costs 7.1 Total restructuring charges $ 50.4 |
Schedule of Restructuring Reserve by Type of Cost | As of December 31, 2018 and September 30, 2019 , FTFM restructuring liabilities are classified as current liabilities on the consolidated balance sheets and balances are as follows: (in millions) Restructuring Liabilities Balance at December 31, 2018 $ — Restructuring charges 7.1 Cash payments (5.2 ) Balance at September 30, 2019 $ 1.9 |
Disclosure of Long Lived Assets Held-for-sale | The required criteria, as defined by ASC 360, Property, Plant and Equipment, was satisfied as part of the shutdown of our FTFM service offering for reclassification of related transportation equipment into assets held for sale. The following table presents information on assets held for sale as of December 31, 2018 and September 30, 2019 within our Truckload segment. As of September 30, 2019 , $50.6 million of the assets held for sale balance relates to the shutdown of our FTFM service offering. Assets held for sale, net of impairment, are included in prepaid expenses and other current assets in the consolidated balance sheets. (in millions) September 30, 2019 December 31, 2018 Truckload $ 119.2 $ 19.5 |
Restructuring Charges - Schedul
Restructuring Charges - Schedule of Long Lived Assets Held-for-sale (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Truckload | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets Held-for-sale | $ 119.2 | $ 19.5 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Jan. 01, 2019 | |
Leased Assets [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 73.5 | |
Operating Lease, Liability | 80.9 | |
Operating lease payments related to options to extend that are reasonably certain to exercise | 10.6 | |
Additional leases, not yet commenced | 3.5 | |
Sales-type leases, lease receivable, nonaccrual status | $ 0.3 | |
Minimum | ||
Leased Assets [Line Items] | ||
Lease terms of leases that have not yet commenced | 4 months | |
Terms of sales-type lease (in years) | 1 year | |
Maximum | ||
Leased Assets [Line Items] | ||
Lease terms of leases that have not yet commenced | 5 years | |
Terms of sales-type lease (in years) | 5 years | |
Accounting Standards Update 2016-02 | ||
Leased Assets [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 80.6 | |
Operating Lease, Liability | $ 85.2 |
Leases - Schedule of Net Lease
Leases - Schedule of Net Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Operating lease cost | ||
Operating lease cost | $ 8.7 | $ 26.5 |
Short-term lease cost | 2 | 5.5 |
Finance lease cost | ||
Amortization of right-of-use assets | 0.9 | 2.5 |
Interest on lease liabilities | 0 | 0.2 |
Variable lease cost | 0.7 | 2.1 |
Sublease income | (1.5) | (4.1) |
Total net lease cost | $ 10.8 | $ 32.7 |
Leases - Schedule of Remaining
Leases - Schedule of Remaining Lease Terms and Discount Rates (Details) | Sep. 30, 2019Rate |
Weighted-average remaining lease term | |
Operating leases | 4 years 4 months 24 days |
Finance leases | 3 months 18 days |
Weighted-average discount rate | |
Operating leases | 4.20% |
Finance leases | 4.70% |
Leases - Schedule of Other Leas
Leases - Schedule of Other Lease Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 26.7 |
Operating cash flows from finance leases | 0.2 |
Financing cash flows from finance leases | 2 |
Right-of-use assets obtained in exchange for new operating lease liability | 20.6 |
Right-of-use assets obtained in exchange for new finance lease liability | $ 0 |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Lease Future Payments (Details) $ in Millions | Sep. 30, 2019USD ($) |
Operating Leases | |
Remaining 2019 | $ 8.5 |
2020 | 27.2 |
2021 | 17.1 |
2022 | 11.1 |
2023 | 8.8 |
2024 and thereafter | 15.9 |
Total | 88.6 |
Amount representing interest | (7.7) |
Present value of lease payments | 80.9 |
Current maturities | (27.1) |
Long-term lease obligations | 53.8 |
Finance Leases | |
Remaining 2019 | 4.9 |
2020 | 0.4 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 and thereafter | 0 |
Total | 5.3 |
Amount representing interest | 0 |
Present value of lease payments | 5.3 |
Current maturities | (5.3) |
Long-term lease obligations | $ 0 |
Leases - Schedule of Operatin_2
Leases - Schedule of Operating and Capital Lease Future Payments (ASC 840) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases | |
2019 | $ 35.8 |
2020 | 25.7 |
2021 | 14.9 |
2022 | 8.4 |
2023 | 6.8 |
2024 and thereafter | 12.7 |
Total | 104.3 |
Capital Leases | |
2019 | 6.9 |
2020 | 0.2 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 and thereafter | 0 |
Total | 7.1 |
Amount representing interest | (0.2) |
Present value of minimum lease payments | 6.9 |
Current maturities | (6.7) |
Long-term capital lease obligations | $ 0.2 |
Leases - Schedule of Finance Le
Leases - Schedule of Finance Lease Right-of-Use Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 |
Finance Leased Assets [Line Items] | ||
Accumulated amortization | $ (13.1) | $ (11.2) |
Finance Lease, Right-of-Use Asset | 9.1 | 10.1 |
Transportation equipment | ||
Finance Leased Assets [Line Items] | ||
Finance Lease, Right-Of-Use Asset, Gross | 19.9 | 19.9 |
Real property | ||
Finance Leased Assets [Line Items] | ||
Finance Lease, Right-Of-Use Asset, Gross | 0.8 | 0.8 |
Other property | ||
Finance Leased Assets [Line Items] | ||
Finance Lease, Right-Of-Use Asset, Gross | $ 1.5 | $ 0.6 |
Leases - Summary of Investment
Leases - Summary of Investment in Lease Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Future minimum payments to be received on leases | $ 146.9 | $ 140 |
Guaranteed residual lease values | 138.2 | 151 |
Total minimum lease payments to be received | 285.1 | 291 |
Unearned income | (33.3) | (28.7) |
Net investment in leases | 251.8 | 262.3 |
Current maturities of lease receivables | 126.1 | 129.6 |
Less—allowance for doubtful accounts | (0.6) | (0.5) |
Current portion of lease receivables—net of allowance | 125.5 | 129.1 |
Lease receivables—noncurrent | $ 126.3 | $ 133.2 |
Leases - Schedule of Principal
Leases - Schedule of Principal Amounts to be Received on Lease Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Remaining 2019 | $ 35.8 | |
2020 | 142.8 | |
2021 | 75.7 | |
2022 | 30.6 | |
2023 | 0.2 | |
2024 and thereafter | 0 | |
Total minimum lease payments to be received | 285.1 | $ 291 |
Unearned income | (33.3) | (28.7) |
Present value of lease receivables | 251.8 | |
Current lease receivables, net of allowance | (125.5) | (129.1) |
Lease receivables—noncurrent | $ 126.3 | $ 133.2 |
Leases - Schedule of Sales-type
Leases - Schedule of Sales-type Lease Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Revenue | $ 50.9 | $ 159.8 |
Cost of goods sold | (46.8) | (144) |
Operating profit | 4.1 | 15.8 |
Interest income on lease receivable | 7 | 20.4 |
Initial direct cost incurred | $ 0 | $ 0 |
Leases - Schedule of Principa_2
Leases - Schedule of Principal Amounts to be Received on Lease Receivables (ASC 840) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 149 |
2020 | 112.7 |
2021 | 29 |
2022 | 0.3 |
2023 | 0 |
2024 and thereafter | 0 |
Total | $ 291 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | $ 1,183.9 | $ 1,280.1 | $ 3,590.7 | $ 3,655.4 |
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 1,093.9 | 1,175 | 3,297.7 | 3,362.9 |
Logistics Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 32.3 | 57.7 | 120.1 | 163.7 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | $ 57.7 | $ 47.4 | $ 172.9 | $ 128.8 |
Revenue Recognition Revenue, Re
Revenue Recognition Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | $ 27.3 |
Expected to be recognized within one year | Transportation | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | 10.5 |
Expected to be recognized within one year | Logistics Management | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | 8.6 |
Expected to be recognized after one year | Transportation | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | 1.3 |
Expected to be recognized after one year | Logistics Management | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | $ 6.9 |
Revenue Recognition Contract wi
Revenue Recognition Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 25.8 | $ 21.7 |
Contract liabilities | $ 0 | $ 0 |
Fair Value Fair Value - Additio
Fair Value Fair Value - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | 36 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value Transfers Between Levels Transfers Amount | $ 0 | $ 0 | ||
Level 3 | Watkins and Shepard Trucking Inc [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 40,000,000 | |||
Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 0 | |||
Contingent Consideration Paid | $ 0 | |||
Fair Value of Contingent Consideration | $ 0 |
Fair Value Fair value of debt p
Fair Value Fair value of debt portfolio (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Total principal outstanding | $ 401.3 | $ 405 |
Fair value | $ 408.9 | $ 398.4 |
Investments (Details)
Investments (Details) | 3 Months Ended |
Sep. 30, 2019 | |
Minimum | |
Debt Securities, Available-for-sale [Line Items] | |
Marketable securities maturity term | 3 months |
Maximum | |
Debt Securities, Available-for-sale [Line Items] | |
Marketable securities maturity term | 81 months |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 46.8 | $ 51.6 |
Fair Value | 47.4 | 51.3 |
Current Asset | Zero coupon bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2 | 3.9 |
Fair Value | 2 | 3.9 |
Current Asset | U.S. treasury and government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19 | 20 |
Fair Value | 19 | 19.8 |
Current Asset | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 0.1 | 0.1 |
Fair Value | 0.1 | 0.1 |
Current Asset | Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14.1 | 15.1 |
Fair Value | 14.5 | 15 |
Current Asset | State and municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11.6 | 12.5 |
Fair Value | $ 11.8 | $ 12.5 |
Investments Investment in Platf
Investments Investment in Platform Science, Inc. (Details) $ in Millions | Sep. 30, 2019USD ($) |
Other Investments [Abstract] | |
Ownership Interest in Platform Science, Inc. | 30.00% |
Fair Value of Ownership Interest in Platform Science, Inc. | $ 3.5 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill | ||||
Beginning balance | $ 162.2 | |||
Foreign currency translation | (0.3) | |||
Goodwill impairment charge | $ 0 | $ 0 | (34.6) | $ 0 |
Ending balance | 127.3 | 127.3 | ||
Truckload | ||||
Goodwill | ||||
Beginning balance | 138.2 | |||
Foreign currency translation | 0 | |||
Goodwill impairment charge | (34.6) | |||
Ending balance | 103.6 | 103.6 | ||
Logistics | ||||
Goodwill | ||||
Beginning balance | 14.2 | |||
Foreign currency translation | 0 | |||
Goodwill impairment charge | 0 | |||
Ending balance | 14.2 | 14.2 | ||
Other | ||||
Goodwill | ||||
Beginning balance | 9.8 | |||
Foreign currency translation | (0.3) | |||
Goodwill impairment charge | 0 | |||
Ending balance | $ 9.5 | $ 9.5 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Identifiable Intangible Assets Other Than Goodwill (Details) - Other Noncurrent Assets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1.1 | $ 11.9 |
Accumulated Amortization | 1.1 | 4.7 |
Net Carrying Amount | 0 | 7.2 |
Customer lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1.1 | 10.5 |
Accumulated Amortization | 1.1 | 3.5 |
Net Carrying Amount | 0 | 7 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0 | 1.4 |
Accumulated Amortization | 0 | 1.2 |
Net Carrying Amount | $ 0 | $ 0.2 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Impairment of customer lists | $ 6.5 | $ 6.5 | |||
Amortization expense for intangible assets | 0.1 | $ 0.3 | 0.7 | $ 1.1 | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 42.6 | $ 42.6 | $ 8 |
Debt and Credit Facilities - Su
Debt and Credit Facilities - Summary of Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Total principal outstanding | $ 401.3 | $ 405 |
Current maturities | (96.2) | (45) |
Debt issuance costs | (0.5) | (0.6) |
Long-term debt | 304.6 | 359.4 |
Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
Total principal outstanding | $ 400 | $ 400 |
Frequency of Payments | Semiannual | |
Maturity year | 2025 | 2025 |
Weighted-average interest rate | 3.36% | 3.36% |
Equipment Financing Notes | ||
Debt Instrument [Line Items] | ||
Total principal outstanding | $ 1.3 | $ 5 |
Frequency of Payments | Monthly | |
Maturity year | 2019 | 2019 |
Weighted-average interest rate | 3.98% | 3.72% |
Debt and Credit Facilities - Ad
Debt and Credit Facilities - Additional Information (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Revolving Credit Agreement | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 250,000,000 | |
Potential Increase Amount | 150,000,000 | |
Potential Maximum Borrowing Capacity | $ 400,000,000 | |
Expiration Date | Aug. 6, 2023 | |
Outstanding Borrowings | $ 0 | $ 0 |
Revolving Credit Agreement | Standby Letters of Credit | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | 100,000,000 | |
Standby Letters of Credit | 3,900,000 | 3,900,000 |
Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 200,000,000 | |
Expiration Date | Sep. 3, 2021 | |
Outstanding Borrowings | $ 0 | 0 |
Secured Credit Facility | Standby Letters of Credit | ||
Debt Instrument [Line Items] | ||
Standby Letters of Credit | $ 70,300,000 | $ 65,300,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 26.20% | 25.80% | 25.30% | 25.80% |
Common Equity - Calculation of
Common Equity - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic earnings per common share: | ||||||||
Net income available to common shareholders | $ 19.7 | $ 34.5 | $ 36.9 | $ 70.7 | $ 65.8 | $ 47.6 | $ 91.1 | $ 184.1 |
Weighted average common shares outstanding | 177.1 | 177 | 177.1 | 177 | ||||
Diluted earnings per common share | ||||||||
Effect of dilutive restricted share units | 0.2 | 0.2 | 0.2 | 0.2 | ||||
Weighted average diluted shares outstanding | 177.3 | 177.2 | 177.3 | 177.2 | ||||
Earnings Per Share, Basic | $ 0.11 | $ 0.40 | $ 0.51 | $ 1.04 | ||||
Earnings Per Share, Diluted | $ 0.11 | $ 0.40 | $ 0.51 | $ 1.04 |
Common Equity - Additional Info
Common Equity - Additional Information (Details) - $ / shares | 1 Months Ended | 3 Months Ended | |||||
Oct. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Class of Stock [Line Items] | |||||||
Dividends declared per share of Class A and Class B common shares | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | |
Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared per share of Class A and Class B common shares | $ 0.06 |
Share-based Compensation Compon
Share-based Compensation Components of Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-based Compensation Expense (Benefit) | $ (2.4) | $ 2.1 | $ 0 | $ 6.3 |
Share-based Compensation Additi
Share-based Compensation Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Pre-tax unrecognized compensation cost related to outstanding share-based compensation awards | $ 11.3 |
Compensation cost not yet recognized, period for recognition | 2 years 8 months 12 days |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to purchase transportation equipment | $ 278,100 | |
Watkins and Shepard Trucking Inc [Member] | Level 3 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 0 | |
Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 40,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Segment | Sep. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 3 | |||
Operating revenues | $ 1,183.9 | $ 1,280.1 | $ 3,590.7 | $ 3,655.4 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 94.3 | 83.9 | 290 | 237 |
Other | Other Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 20.8 | $ 20.7 | $ 66.8 | $ 62 |
Segment Reporting - Revenue by
Segment Reporting - Revenue by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 1,183.9 | $ 1,280.1 | $ 3,590.7 | $ 3,655.4 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (25.5) | (31.8) | (85.4) | (84.1) |
Truckload | ||||
Segment Reporting Information [Line Items] | ||||
Revenues (excluding fuel charge by segment) | 515.6 | 566.9 | 1,582.3 | 1,685 |
Intermodal | ||||
Segment Reporting Information [Line Items] | ||||
Revenues (excluding fuel charge by segment) | 249.2 | 254.4 | 746.6 | 688 |
Logistics | ||||
Segment Reporting Information [Line Items] | ||||
Revenues (excluding fuel charge by segment) | 236.1 | 271.8 | 707 | 743.7 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 94.3 | 83.9 | 290 | 237 |
Fuel Surcharge | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 114.2 | 134.9 | 350.2 | 385.8 |
Other Insurance | Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 20.8 | $ 20.7 | $ 66.8 | $ 62 |
Segment Reporting - Income From
Segment Reporting - Income From Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Income from operations | $ 29 | $ 97.9 | $ 129.7 | $ 257.2 |
Restructuring charges | 50.4 | 0 | 50.4 | 0 |
Goodwill impairment charge | 0 | 0 | 34.6 | 0 |
Truckload | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | (12.5) | 54.4 | 18.6 | 162.2 |
Restructuring charges | 50.4 | 50.4 | ||
Impairment on Assets Held for Sale | 11.5 | 11.5 | ||
Goodwill impairment charge | 34.6 | |||
Intermodal | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 25.1 | 36.1 | 75.5 | 90.7 |
Logistics | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 9.9 | 13 | 29.4 | 31.2 |
Goodwill impairment charge | 0 | |||
Other | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | $ 6.5 | $ (5.6) | 6.2 | $ (26.9) |
Goodwill impairment charge | $ 0 |
Segment Reporting - Depreciatio
Segment Reporting - Depreciation and Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization expense | $ 74.1 | $ 73.3 | $ 222.4 | $ 216.9 |
Truckload | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization expense | 53.2 | 52.6 | 161.5 | 157.3 |
Intermodal | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization expense | 11.3 | 10.3 | 33.2 | 29 |
Logistics | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization expense | 0.2 | 0.1 | 0.5 | 0.3 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization expense | $ 9.4 | $ 10.3 | $ 27.2 | $ 30.3 |
Segment Reporting - Prior Perio
Segment Reporting - Prior Period Adjustments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Increase (Decrease) in Income (Loss) from Operations by Segment | $ 29 | $ 97.9 | $ 129.7 | $ 257.2 |
Truckload | ||||
Segment Reporting Information [Line Items] | ||||
Increase (Decrease) in Revenues (excluding fuel surcharge) by Segment | 515.6 | 566.9 | 1,582.3 | 1,685 |
Increase (Decrease) in Income (Loss) from Operations by Segment | (12.5) | 54.4 | 18.6 | 162.2 |
Intermodal | ||||
Segment Reporting Information [Line Items] | ||||
Increase (Decrease) in Revenues (excluding fuel surcharge) by Segment | 249.2 | 254.4 | 746.6 | 688 |
Increase (Decrease) in Income (Loss) from Operations by Segment | 25.1 | 36.1 | 75.5 | 90.7 |
Logistics | ||||
Segment Reporting Information [Line Items] | ||||
Increase (Decrease) in Revenues (excluding fuel surcharge) by Segment | 236.1 | 271.8 | 707 | 743.7 |
Increase (Decrease) in Income (Loss) from Operations by Segment | 9.9 | 13 | 29.4 | 31.2 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Increase (Decrease) in Income (Loss) from Operations by Segment | $ 6.5 | (5.6) | $ 6.2 | (26.9) |
Restatement Adjustment | Transferred over Time | ||||
Segment Reporting Information [Line Items] | ||||
Increase (Decrease) in Revenues (excluding fuel surcharge) by Segment | 0 | 0 | ||
Increase (Decrease) in Income (Loss) from Operations by Segment | 0 | 0 | ||
Restatement Adjustment | Transferred over Time | Truckload | ||||
Segment Reporting Information [Line Items] | ||||
Increase (Decrease) in Revenues (excluding fuel surcharge) by Segment | 1.9 | 0 | ||
Increase (Decrease) in Income (Loss) from Operations by Segment | 1.3 | (0.6) | ||
Restatement Adjustment | Transferred over Time | Intermodal | ||||
Segment Reporting Information [Line Items] | ||||
Increase (Decrease) in Revenues (excluding fuel surcharge) by Segment | 2.3 | 7 | ||
Increase (Decrease) in Income (Loss) from Operations by Segment | 0 | 2 | ||
Restatement Adjustment | Transferred over Time | Logistics | ||||
Segment Reporting Information [Line Items] | ||||
Increase (Decrease) in Revenues (excluding fuel surcharge) by Segment | 3.1 | 4.5 | ||
Increase (Decrease) in Income (Loss) from Operations by Segment | 0.5 | 0.8 | ||
Restatement Adjustment | Transferred over Time | Other | ||||
Segment Reporting Information [Line Items] | ||||
Increase (Decrease) in Revenues (excluding fuel surcharge) by Segment | (7.3) | (11.5) | ||
Increase (Decrease) in Income (Loss) from Operations by Segment | $ (1.8) | $ (2.2) |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Aug. 31, 2019 | Jul. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jul. 29, 2019 | |
Restructuring Cost and Reserve | |||||||
Restructuring, Initiation Date | Jul. 29, 2019 | ||||||
Restructuring, Completion Date | Aug. 31, 2019 | ||||||
Restructuring charges | $ 50.4 | $ 0 | $ 50.4 | $ 0 | |||
FTFM pre-tax losses | 8.9 | $ 9.7 | 34.2 | $ 19.3 | |||
Truckload | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring charges | 50.4 | 50.4 | |||||
Held-for-sale | |||||||
Restructuring Cost and Reserve | |||||||
Fair value of disposal group assets | 50.6 | 50.6 | |||||
Right-of-use asset | |||||||
Restructuring Cost and Reserve | |||||||
Fair value of disposal group assets | $ 13.6 | $ 13.6 | |||||
Minimum | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring, Expected Cost | $ 50 | ||||||
Maximum | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring, Expected Cost | $ 75 |
Restructuring Charges - Sched_2
Restructuring Charges - Schedule of Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve | ||||
Restructuring charges | $ 50.4 | $ 0 | $ 50.4 | $ 0 |
Truckload | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | 50.4 | 50.4 | ||
Truckload | Impairment charges | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | 35.7 | 35.7 | ||
Truckload | Receivables write-down | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | 7.6 | 7.6 | ||
Truckload | Other costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | $ 7.1 | $ 7.1 |
Restructuring Charges - Sched_3
Restructuring Charges - Schedule of Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Restructuring Cost and Reserve | |||||
Restructuring charges | $ 50.4 | $ 0 | $ 50.4 | $ 0 | |
Cash payments | (5.2) | (5.2) | |||
Restructuring reserve | 1.9 | 1.9 | $ 0 | ||
Truckload | |||||
Restructuring Cost and Reserve | |||||
Restructuring charges | 50.4 | 50.4 | |||
Truckload | Impairment charges | |||||
Restructuring Cost and Reserve | |||||
Restructuring charges | 35.7 | 35.7 | |||
Truckload | Receivables write-down | |||||
Restructuring Cost and Reserve | |||||
Restructuring charges | 7.6 | 7.6 | |||
Truckload | Other costs | |||||
Restructuring Cost and Reserve | |||||
Restructuring charges | $ 7.1 | $ 7.1 |