Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Document Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
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 | |
Title of 12(b) Security | Class B common stock, no par value | |
Trading Symbol | SNDR | |
Security Exchange Name | NYSE | |
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 | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001692063 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Shares | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 83,029,500 | |
Class B Common Stock | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 94,186,859 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 600.6 | $ 551.6 |
Marketable securities | 49.2 | 48.3 |
Trade accounts receivable—net of allowance of $3.7 million and $3.4 million, respectively | 475.8 | 465.8 |
Other receivables | 26.8 | 28.9 |
Current portion of lease receivables—net of allowance of $0.7 million and $0.6 million, respectively | 118.3 | 121.5 |
Inventories | 60.9 | 71.9 |
Prepaid expenses and other current assets | 127.7 | 117.7 |
Total current assets | 1,459.3 | 1,405.7 |
Property and equipment: | ||
Transportation equipment | 2,815.7 | 2,790.1 |
Land, buildings, and improvements | 199.6 | 199.3 |
Other property and equipment | 165 | 162.7 |
Total property and equipment | 3,180.3 | 3,152.1 |
Accumulated depreciation | 1,342.5 | 1,300.5 |
Net property and equipment | 1,837.8 | 1,851.6 |
Lease receivables—noncurrent | 112.4 | 109.4 |
Capitalized software and other noncurrent assets | 178.1 | 165.9 |
Goodwill | 127.3 | 127.5 |
Total noncurrent assets | 2,255.6 | 2,254.4 |
Total Assets | 3,714.9 | 3,660.1 |
Current Liabilities: | ||
Trade accounts payable | 238.3 | 207.7 |
Accrued salaries, wages, and benefits | 57.9 | 63.8 |
Claims accruals—current | 44 | 42 |
Current maturities of debt and finance lease obligations | 30.5 | 55.5 |
Dividends payable | 11.8 | 10.8 |
Other current liabilities | 92.1 | 85.4 |
Total current liabilities | 474.6 | 465.2 |
Noncurrent Liabilities: | ||
Long-term debt and finance lease obligations | 306.1 | 305.8 |
Claims accruals—noncurrent | 132 | 118.7 |
Deferred income taxes | 453.4 | 449 |
Other noncurrent liabilities | 80.3 | 85 |
Total noncurrent liabilities | 971.8 | 958.5 |
Total liabilities | 1,446.4 | 1,423.7 |
Shareholders' Equity: | ||
Additional paid-in capital | 1,543.8 | 1,542.7 |
Retained earnings | 725.7 | 693.6 |
Accumulated other comprehensive income (loss) | (1) | 0.1 |
Total shareholders' equity | 2,268.5 | 2,236.4 |
Total Liabilities and Shareholders' Equity | 3,714.9 | 3,660.1 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Operating revenues | $ 1,119.1 | $ 1,194.1 |
Operating expenses: | ||
Purchased transportation | 479.6 | 473.3 |
Salaries, wages, and benefits | 264.4 | 313 |
Fuel and fuel taxes | 60.9 | 74.8 |
Depreciation and amortization | 69.8 | 73.4 |
Operating supplies and expenses | 132 | 145.1 |
Insurance and related expenses | 29.2 | 28.2 |
Other general expenses | 29.5 | 34.8 |
Restructuring—net | (1.2) | 0 |
Total operating expenses | 1,064.2 | 1,142.6 |
Income from operations | 54.9 | 51.5 |
Other expenses (income): | ||
Interest income | (1.8) | (2.2) |
Interest expense | 3.8 | 3.9 |
Other expenses (income)—net | (5.4) | 0.4 |
Total other expenses (income) | (3.4) | 2.1 |
Income before income taxes | 58.3 | 49.4 |
Provision for income taxes | 14.5 | 12.5 |
Net income | 43.8 | 36.9 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (0.8) | 0.3 |
Net unrealized gains (losses) on marketable securities—net of tax | (0.3) | 0.4 |
Total other comprehensive income (loss) | (1.1) | 0.7 |
Comprehensive income | $ 42.7 | $ 37.6 |
Weighted average common shares outstanding | 177.1 | 177 |
Basic earnings per common share | $ 0.25 | $ 0.21 |
Weighted average diluted shares outstanding | 177.4 | 177.4 |
Diluted earnings per common share | $ 0.25 | $ 0.21 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Trade allowance | $ 3.7 | $ 3.4 |
Allowance for lease receivables | $ 0.7 | $ 0.6 |
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) | 95,031,063 | 94,837,673 |
Common stock, shares outstanding (shares) | 94,183,081 | 94,088,025 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities: | ||
Net income | $ 43.8 | $ 36.9 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 69.8 | 73.4 |
Losses (gains) on sales of property and equipment—net | 2.8 | (2.8) |
Impairment on assets held for sale | 2 | 0 |
Proceeds from lease receipts | 18 | 20 |
Deferred income taxes | 4.5 | 7.3 |
Long-term incentive and share-based compensation expense | 2.4 | 6.1 |
Noncash restructuring—net | (1.1) | 0 |
Other noncash items | (4.9) | 0.3 |
Changes in operating assets and liabilities: | ||
Receivables | (7.2) | 55.2 |
Other assets | (29.9) | (42) |
Payables | 18.6 | 12 |
Claims reserves and other receivables—net | 11.6 | 8.5 |
Other liabilities | (5.9) | (41.7) |
Net cash provided by operating activities | 124.5 | 133.2 |
Investing Activities: | ||
Purchases of transportation equipment | (22.2) | (50.1) |
Purchases of other property and equipment | (12.6) | (11.1) |
Proceeds from sale of property and equipment | 19.4 | 11.1 |
Proceeds from sale of off-lease inventory | 4 | 4.9 |
Purchases of lease equipment | (26.6) | (18.7) |
Proceeds from marketable securities | 6.2 | 6.1 |
Purchases of marketable securities | (7.9) | (1.4) |
Net cash used in investing activities | (39.7) | (59.2) |
Financing Activities: | ||
Payments of debt and finance lease obligations | (25.1) | (1.1) |
Dividends paid | (10.7) | (10.6) |
Net cash used in financing activities | (35.8) | (11.7) |
Net increase in cash and cash equivalents | 49 | 62.3 |
Cash and Cash Equivalents: | ||
Beginning of period | 551.6 | 378.7 |
End of period | 600.6 | 441 |
Noncash investing and financing activity: | ||
Equipment purchases in accounts payable | 31.1 | 72.2 |
Dividends declared but not yet paid | 11.8 | 10.7 |
Cash Paid During the Period For: | ||
Interest | 4.8 | 5.1 |
Income taxes—net of refunds | $ 0.2 | $ 0.7 |
Consolidated Statements Shareho
Consolidated Statements Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance at Dec. 31, 2018 | $ 2,132.3 | $ 0 | $ 1,544 | $ 589.3 | $ (1) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 36.9 | 0 | 0 | 36.9 | 0 |
Other comprehensive gain (loss) | 0.7 | 0 | 0 | 0 | 0.7 |
Share-based compensation expense | 2 | 0 | 2 | 0 | 0 |
Dividends declared | (10.7) | 0 | 0 | (10.7) | 0 |
Shares withheld for employee taxes | (1.2) | 0 | (1.2) | 0 | 0 |
Balance at Mar. 31, 2019 | 2,160 | 0 | 1,544.8 | 615.5 | (0.3) |
Balance at Dec. 31, 2019 | 2,236.4 | 0 | 1,542.7 | 693.6 | 0.1 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 43.8 | 0 | 0 | 43.8 | 0 |
Other comprehensive gain (loss) | (1.1) | 0 | 0 | 0 | (1.1) |
Share-based compensation expense | 1.9 | 0 | 1.9 | 0 | 0 |
Dividends declared | (11.7) | 0 | 0 | (11.7) | 0 |
Share issuances | 0.1 | 0 | 0.1 | 0 | 0 |
Shares withheld for employee taxes | (0.9) | 0 | (0.9) | 0 | 0 |
Balance at Mar. 31, 2020 | $ 2,268.5 | $ 0 | $ 1,543.8 | $ 725.7 | $ (1) |
Consolidated Statements Share_2
Consolidated Statements Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Class A Common Shares | ||
Dividends declared per share | $ 0.065 | $ 0.06 |
Class B Common Stock | ||
Dividends declared per share | $ 0.065 | $ 0.06 |
General
General | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GENERAL Nature of Operations 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. Schneider is a transportation service organization headquartered in Green Bay, Wisconsin and has three reportable segments focused on providing truckload, intermodal, and logistics solutions. Principles of Consolidation and Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in conformity 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, 2019 . 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. COVID-19 There are many uncertainties regarding the COVID-19 pandemic, and the Company is closely monitoring the impact of the pandemic on all aspects of its business, including how it will impact its customers, employees, owner-operators, and business partners. While the pandemic did not have a significant impact on the Company’s operational or financial results in the quarter ended March 31, 2020, we are unable to predict the impact COVID-19 will have on its future financial position and operating results due to numerous uncertainties. The Company will continue to assess the impact of the COVID-19 pandemic as it evolves. Accounting Standards Issued but Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. This guidance offers optional expedients and exceptions for applying GAAP to transactions, including contract modifications, hedging relationships, and the sale or transfer of debt securities classified as held-to-maturity affected by reference rate reform, if certain criteria are met. Entities may elect to apply the provisions of this new standard as early as March 12, 2020 until December 31, 2022, when the reference rate replacement activity is expected to be complete. We are currently evaluating the impact the adoption of this ASU will have on our consolidated financial statements and related disclosures and have not yet elected an adoption date. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which reduces complexity in accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and clarifying and amending existing guidance to improve consistent application among reporting entities. ASU 2019-12 is effective for us as of January 1, 2021 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. Accounting Standards Recently Adopted We adopted ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which amends ASC 350, as of January 1, 2020 on a prospective basis. This standard aligned 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. The adoption did not have a material impact on our consolidated financial statements or disclosures. We adopted ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which is codified in ASC 326, as of January 1, 2020. The guidance replaced the incurred loss model with a methodology that reflects expected credit losses over the life of the financial assets held at the reporting date based on historical experience, as well as considerations of current conditions and reasonable and supportable forecasts. This new model for estimating our expected credit losses was implemented for our trade accounts receivable and reinsurance recoverables ( Note 2 , Receivables ), net investment in leases ( Note 3 , Leases ), and available-for-sale debt securities ( Note 6 , Investments ) and did not result in a material impact to our consolidated financial statements or disclosures upon adoption. |
Receivables (Notes)
Receivables (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Credit Loss on Financial Instruments | RECEIVABLES Trade Accounts Receivable and Allowance Our trade accounts receivable is recorded net of an allowance for doubtful accounts and revenue adjustments. The allowance is based on an aging analysis using historical experience, as well as any known and expected trends or uncertainties related to customer billing and account collectability. The adequacy of our allowance is reviewed at least quarterly, and receivables that are not expected to be collected are reserved for. In circumstances where we are aware of a customer's inability to meet its financial obligations, a specific reserve is recorded to reduce the net receivable to the amount we reasonably expect to collect. Bad debt expense is included in other general expenses in the consolidated statements of comprehensive income. The following table shows changes to our trade accounts receivable allowance for doubtful accounts for the three months ended March 31, 2020 . Excluded from the amounts below is the portion of the allowance recorded for revenue adjustments, as that portion is not credit-related nor due to a customer’s inability to meet its financial obligations. Three Months Ended (in millions) 2020 Balance at beginning of period $ 0.9 Charges to expense 0.3 Write-offs (0.3 ) Recoveries 0.1 Balance at end of period $ 1.0 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 include office equipment and truck washes. The majority of our leases include an option to extend the lease, and a small number of our leases include an option to terminate the lease early, which may include a termination payment. Additional information related to our leases is as follows: Three Months Ended (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 8.6 $ 8.8 Operating cash flows from finance leases — 0.1 Financing cash flows from finance leases 0.2 0.7 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 7.4 $ 11.2 Finance leases 0.3 — As of March 31, 2020 , we had additional leases signed that had not yet commenced of $4.2 million . These leases will commence during the remainder of 2020 and have lease terms of five years . 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 accounted for as sales-type leases with fully guaranteed residual values. 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 contractual residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values. As of March 31, 2020 and December 31, 2019 , the investments in lease receivables were as follows: (in millions) March 31, 2020 December 31, 2019 Future minimum payments to be received on leases $ 141.9 $ 135.0 Guaranteed residual lease values 122.1 126.6 Total minimum lease payments to be received 264.0 261.6 Unearned income (33.3 ) (30.7 ) Net investment in leases 230.7 230.9 Current maturities of lease receivables 119.0 122.1 Allowance for doubtful accounts (0.7 ) (0.6 ) Current portion of lease receivables—net of allowance 118.3 121.5 Lease receivables—noncurrent $ 112.4 $ 109.4 Before entering into a lease contract, we assess the credit quality of the potential lessee through the use of credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. As part of our ongoing monitoring of the credit quality of our lease portfolio, on a weekly basis we track amounts past due, days past due, and outstanding maintenance account balances, including running subsequent credit checks as needed. The following table presents our net investment in leases, which includes both current and future lease payments, as of March 31, 2020 by amounts past due, our primary ongoing credit quality indicator, and lease origination year: Net Investment in Leases by Lease Origination Year (in millions) Amounts Past Due (in ones) 2020 2019 2018 2017 2016 Prior Total Greater than $3,000 $ 0.7 $ 2.8 $ 1.6 $ 0.6 $ 0.1 $ — $ 5.8 Between $2,999 and $1,500 1.4 4.3 2.0 0.7 0.4 — 8.8 Less than $1,499 5.6 13.6 6.1 2.5 0.8 0.1 28.7 Total $ 7.7 $ 20.7 $ 9.7 $ 3.8 $ 1.3 $ 0.1 $ 43.3 Lease payments are generally due on a weekly basis and are classified as past due when past the due date. The following table presents an aging analysis of our lease payments owed to us which are classified as past due as of March 31, 2020 : (in millions) March 31, 2020 1-29 days $ 1.3 30-59 days 0.5 60-89 days 0.3 90 days or greater 0.4 Total past due $ 2.5 Our lease receivables are recorded net of an allowance for doubtful accounts based on an aging analysis to reserve amounts expected to not be collected. 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, which can be impacted by economic conditions, is not realized. Accrued interest on our leases is included within lease receivables on the consolidated balance sheets and was not material as of March 31, 2020 and December 31, 2019 . Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon notification of bankruptcy, death, or 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 both March 31, 2020 and December 31, 2019 , $0.2 million of our net investment in leases were on nonaccrual status. The table below provides additional information on our sales-type leases. Three Months Ended (in millions) 2020 2019 Revenue $ 54.7 $ 56.2 Cost of goods sold (48.9 ) (49.9 ) Operating profit $ 5.8 $ 6.3 Interest income on lease receivable $ 6.5 $ 6.6 Marketable Securities Our marketable securities are classified as available-for-sale and carried at fair value in current assets on the consolidated balance sheets. 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. With the adoption of ASU 2016-13, the guidance on reporting credit losses for available-for-sale debt securities was amended. Under this new guidance, credit losses are to be recorded through an allowance for credit losses rather than as a direct write-down to the security. As a result, any unrealized gains and losses, net of tax, are included as a component of accumulated other comprehensive income on the consolidated balance sheets, unless we determine that the amortized cost basis is not recoverable. If we determine that the amortized cost basis of the impaired security is not recoverable, we recognize the credit loss by increasing the allowance for those losses. Cost basis is determined using the specific identification method. When adopting this standard, we elected to continue to present the accrued interest receivable balance associated with our investments in marketable securities separate from the marketable securities line in the consolidated balance sheets. As of March 31, 2020 , accrued interest receivable associated with our investments in marketable securities was not material and is included with other receivables in the consolidated balance sheets. We have elected the practical expedient provided under the guidance to exclude the applicable accrued interest from the amortized cost basis disclosure of our marketable securities. We have also elected not to measure an allowance for credit losses on our accrued interest receivable and to write off accrued interest receivable by reversing interest income when it is not considered collectible. The following table presents the maturities and values of our marketable securities as of the dates shown: March 31, 2020 December 31, 2019 (in millions, except maturities in months) Maturities Amortized Cost Fair Value Amortized Cost Fair Value U.S. treasury and government agencies 12 to 79 $ 14.6 $ 14.9 $ 16.5 $ 17.0 Asset-backed securities 10 — — 0.1 0.1 Corporate debt securities 1 to 67 18.3 18.5 15.1 15.4 State and municipal bonds 3 to 66 11.6 11.8 11.6 11.8 Other U.S. and non-U.S. government bonds 4 to 54 4.0 4.0 4.0 4.0 Total marketable securities $ 48.5 $ 49.2 $ 47.3 $ 48.3 Gross realized gains and losses and net unrealized gains and losses, net of tax, on marketable securities were not material for the three months ended March 31, 2020 and 2019 . Additionally, we did not have an allowance for credit losses on our marketable securities as of March 31, 2020 or any other-than-temporary impairments as of December 31, 2019 , and our total unrealized gains and losses were not material as of March 31, 2020 and December 31, 2019 . |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Finance Leases | LEASES 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 include office equipment and truck washes. The majority of our leases include an option to extend the lease, and a small number of our leases include an option to terminate the lease early, which may include a termination payment. Additional information related to our leases is as follows: Three Months Ended (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 8.6 $ 8.8 Operating cash flows from finance leases — 0.1 Financing cash flows from finance leases 0.2 0.7 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 7.4 $ 11.2 Finance leases 0.3 — As of March 31, 2020 , we had additional leases signed that had not yet commenced of $4.2 million . These leases will commence during the remainder of 2020 and have lease terms of five years . 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 accounted for as sales-type leases with fully guaranteed residual values. 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 contractual residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values. As of March 31, 2020 and December 31, 2019 , the investments in lease receivables were as follows: (in millions) March 31, 2020 December 31, 2019 Future minimum payments to be received on leases $ 141.9 $ 135.0 Guaranteed residual lease values 122.1 126.6 Total minimum lease payments to be received 264.0 261.6 Unearned income (33.3 ) (30.7 ) Net investment in leases 230.7 230.9 Current maturities of lease receivables 119.0 122.1 Allowance for doubtful accounts (0.7 ) (0.6 ) Current portion of lease receivables—net of allowance 118.3 121.5 Lease receivables—noncurrent $ 112.4 $ 109.4 Before entering into a lease contract, we assess the credit quality of the potential lessee through the use of credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. As part of our ongoing monitoring of the credit quality of our lease portfolio, on a weekly basis we track amounts past due, days past due, and outstanding maintenance account balances, including running subsequent credit checks as needed. The following table presents our net investment in leases, which includes both current and future lease payments, as of March 31, 2020 by amounts past due, our primary ongoing credit quality indicator, and lease origination year: Net Investment in Leases by Lease Origination Year (in millions) Amounts Past Due (in ones) 2020 2019 2018 2017 2016 Prior Total Greater than $3,000 $ 0.7 $ 2.8 $ 1.6 $ 0.6 $ 0.1 $ — $ 5.8 Between $2,999 and $1,500 1.4 4.3 2.0 0.7 0.4 — 8.8 Less than $1,499 5.6 13.6 6.1 2.5 0.8 0.1 28.7 Total $ 7.7 $ 20.7 $ 9.7 $ 3.8 $ 1.3 $ 0.1 $ 43.3 Lease payments are generally due on a weekly basis and are classified as past due when past the due date. The following table presents an aging analysis of our lease payments owed to us which are classified as past due as of March 31, 2020 : (in millions) March 31, 2020 1-29 days $ 1.3 30-59 days 0.5 60-89 days 0.3 90 days or greater 0.4 Total past due $ 2.5 Our lease receivables are recorded net of an allowance for doubtful accounts based on an aging analysis to reserve amounts expected to not be collected. 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, which can be impacted by economic conditions, is not realized. Accrued interest on our leases is included within lease receivables on the consolidated balance sheets and was not material as of March 31, 2020 and December 31, 2019 . Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon notification of bankruptcy, death, or 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 both March 31, 2020 and December 31, 2019 , $0.2 million of our net investment in leases were on nonaccrual status. The table below provides additional information on our sales-type leases. Three Months Ended (in millions) 2020 2019 Revenue $ 54.7 $ 56.2 Cost of goods sold (48.9 ) (49.9 ) Operating profit $ 5.8 $ 6.3 Interest income on lease receivable $ 6.5 $ 6.6 |
Operating Leases | LEASES 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 include office equipment and truck washes. The majority of our leases include an option to extend the lease, and a small number of our leases include an option to terminate the lease early, which may include a termination payment. Additional information related to our leases is as follows: Three Months Ended (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 8.6 $ 8.8 Operating cash flows from finance leases — 0.1 Financing cash flows from finance leases 0.2 0.7 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 7.4 $ 11.2 Finance leases 0.3 — As of March 31, 2020 , we had additional leases signed that had not yet commenced of $4.2 million . These leases will commence during the remainder of 2020 and have lease terms of five years . 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 accounted for as sales-type leases with fully guaranteed residual values. 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 contractual residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values. As of March 31, 2020 and December 31, 2019 , the investments in lease receivables were as follows: (in millions) March 31, 2020 December 31, 2019 Future minimum payments to be received on leases $ 141.9 $ 135.0 Guaranteed residual lease values 122.1 126.6 Total minimum lease payments to be received 264.0 261.6 Unearned income (33.3 ) (30.7 ) Net investment in leases 230.7 230.9 Current maturities of lease receivables 119.0 122.1 Allowance for doubtful accounts (0.7 ) (0.6 ) Current portion of lease receivables—net of allowance 118.3 121.5 Lease receivables—noncurrent $ 112.4 $ 109.4 Before entering into a lease contract, we assess the credit quality of the potential lessee through the use of credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. As part of our ongoing monitoring of the credit quality of our lease portfolio, on a weekly basis we track amounts past due, days past due, and outstanding maintenance account balances, including running subsequent credit checks as needed. The following table presents our net investment in leases, which includes both current and future lease payments, as of March 31, 2020 by amounts past due, our primary ongoing credit quality indicator, and lease origination year: Net Investment in Leases by Lease Origination Year (in millions) Amounts Past Due (in ones) 2020 2019 2018 2017 2016 Prior Total Greater than $3,000 $ 0.7 $ 2.8 $ 1.6 $ 0.6 $ 0.1 $ — $ 5.8 Between $2,999 and $1,500 1.4 4.3 2.0 0.7 0.4 — 8.8 Less than $1,499 5.6 13.6 6.1 2.5 0.8 0.1 28.7 Total $ 7.7 $ 20.7 $ 9.7 $ 3.8 $ 1.3 $ 0.1 $ 43.3 Lease payments are generally due on a weekly basis and are classified as past due when past the due date. The following table presents an aging analysis of our lease payments owed to us which are classified as past due as of March 31, 2020 : (in millions) March 31, 2020 1-29 days $ 1.3 30-59 days 0.5 60-89 days 0.3 90 days or greater 0.4 Total past due $ 2.5 Our lease receivables are recorded net of an allowance for doubtful accounts based on an aging analysis to reserve amounts expected to not be collected. 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, which can be impacted by economic conditions, is not realized. Accrued interest on our leases is included within lease receivables on the consolidated balance sheets and was not material as of March 31, 2020 and December 31, 2019 . Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon notification of bankruptcy, death, or 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 both March 31, 2020 and December 31, 2019 , $0.2 million of our net investment in leases were on nonaccrual status. The table below provides additional information on our sales-type leases. Three Months Ended (in millions) 2020 2019 Revenue $ 54.7 $ 56.2 Cost of goods sold (48.9 ) (49.9 ) Operating profit $ 5.8 $ 6.3 Interest income on lease receivable $ 6.5 $ 6.6 |
Sales-type Leases | LEASES 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 include office equipment and truck washes. The majority of our leases include an option to extend the lease, and a small number of our leases include an option to terminate the lease early, which may include a termination payment. Additional information related to our leases is as follows: Three Months Ended (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 8.6 $ 8.8 Operating cash flows from finance leases — 0.1 Financing cash flows from finance leases 0.2 0.7 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 7.4 $ 11.2 Finance leases 0.3 — As of March 31, 2020 , we had additional leases signed that had not yet commenced of $4.2 million . These leases will commence during the remainder of 2020 and have lease terms of five years . 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 accounted for as sales-type leases with fully guaranteed residual values. 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 contractual residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values. As of March 31, 2020 and December 31, 2019 , the investments in lease receivables were as follows: (in millions) March 31, 2020 December 31, 2019 Future minimum payments to be received on leases $ 141.9 $ 135.0 Guaranteed residual lease values 122.1 126.6 Total minimum lease payments to be received 264.0 261.6 Unearned income (33.3 ) (30.7 ) Net investment in leases 230.7 230.9 Current maturities of lease receivables 119.0 122.1 Allowance for doubtful accounts (0.7 ) (0.6 ) Current portion of lease receivables—net of allowance 118.3 121.5 Lease receivables—noncurrent $ 112.4 $ 109.4 Before entering into a lease contract, we assess the credit quality of the potential lessee through the use of credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. As part of our ongoing monitoring of the credit quality of our lease portfolio, on a weekly basis we track amounts past due, days past due, and outstanding maintenance account balances, including running subsequent credit checks as needed. The following table presents our net investment in leases, which includes both current and future lease payments, as of March 31, 2020 by amounts past due, our primary ongoing credit quality indicator, and lease origination year: Net Investment in Leases by Lease Origination Year (in millions) Amounts Past Due (in ones) 2020 2019 2018 2017 2016 Prior Total Greater than $3,000 $ 0.7 $ 2.8 $ 1.6 $ 0.6 $ 0.1 $ — $ 5.8 Between $2,999 and $1,500 1.4 4.3 2.0 0.7 0.4 — 8.8 Less than $1,499 5.6 13.6 6.1 2.5 0.8 0.1 28.7 Total $ 7.7 $ 20.7 $ 9.7 $ 3.8 $ 1.3 $ 0.1 $ 43.3 Lease payments are generally due on a weekly basis and are classified as past due when past the due date. The following table presents an aging analysis of our lease payments owed to us which are classified as past due as of March 31, 2020 : (in millions) March 31, 2020 1-29 days $ 1.3 30-59 days 0.5 60-89 days 0.3 90 days or greater 0.4 Total past due $ 2.5 Our lease receivables are recorded net of an allowance for doubtful accounts based on an aging analysis to reserve amounts expected to not be collected. 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, which can be impacted by economic conditions, is not realized. Accrued interest on our leases is included within lease receivables on the consolidated balance sheets and was not material as of March 31, 2020 and December 31, 2019 . Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon notification of bankruptcy, death, or 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 both March 31, 2020 and December 31, 2019 , $0.2 million of our net investment in leases were on nonaccrual status. The table below provides additional information on our sales-type leases. Three Months Ended (in millions) 2020 2019 Revenue $ 54.7 $ 56.2 Cost of goods sold (48.9 ) (49.9 ) Operating profit $ 5.8 $ 6.3 Interest income on lease receivable $ 6.5 $ 6.6 |
Credit Loss on Financial Instruments | RECEIVABLES Trade Accounts Receivable and Allowance Our trade accounts receivable is recorded net of an allowance for doubtful accounts and revenue adjustments. The allowance is based on an aging analysis using historical experience, as well as any known and expected trends or uncertainties related to customer billing and account collectability. The adequacy of our allowance is reviewed at least quarterly, and receivables that are not expected to be collected are reserved for. In circumstances where we are aware of a customer's inability to meet its financial obligations, a specific reserve is recorded to reduce the net receivable to the amount we reasonably expect to collect. Bad debt expense is included in other general expenses in the consolidated statements of comprehensive income. The following table shows changes to our trade accounts receivable allowance for doubtful accounts for the three months ended March 31, 2020 . Excluded from the amounts below is the portion of the allowance recorded for revenue adjustments, as that portion is not credit-related nor due to a customer’s inability to meet its financial obligations. Three Months Ended (in millions) 2020 Balance at beginning of period $ 0.9 Charges to expense 0.3 Write-offs (0.3 ) Recoveries 0.1 Balance at end of period $ 1.0 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 include office equipment and truck washes. The majority of our leases include an option to extend the lease, and a small number of our leases include an option to terminate the lease early, which may include a termination payment. Additional information related to our leases is as follows: Three Months Ended (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 8.6 $ 8.8 Operating cash flows from finance leases — 0.1 Financing cash flows from finance leases 0.2 0.7 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 7.4 $ 11.2 Finance leases 0.3 — As of March 31, 2020 , we had additional leases signed that had not yet commenced of $4.2 million . These leases will commence during the remainder of 2020 and have lease terms of five years . 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 accounted for as sales-type leases with fully guaranteed residual values. 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 contractual residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values. As of March 31, 2020 and December 31, 2019 , the investments in lease receivables were as follows: (in millions) March 31, 2020 December 31, 2019 Future minimum payments to be received on leases $ 141.9 $ 135.0 Guaranteed residual lease values 122.1 126.6 Total minimum lease payments to be received 264.0 261.6 Unearned income (33.3 ) (30.7 ) Net investment in leases 230.7 230.9 Current maturities of lease receivables 119.0 122.1 Allowance for doubtful accounts (0.7 ) (0.6 ) Current portion of lease receivables—net of allowance 118.3 121.5 Lease receivables—noncurrent $ 112.4 $ 109.4 Before entering into a lease contract, we assess the credit quality of the potential lessee through the use of credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. As part of our ongoing monitoring of the credit quality of our lease portfolio, on a weekly basis we track amounts past due, days past due, and outstanding maintenance account balances, including running subsequent credit checks as needed. The following table presents our net investment in leases, which includes both current and future lease payments, as of March 31, 2020 by amounts past due, our primary ongoing credit quality indicator, and lease origination year: Net Investment in Leases by Lease Origination Year (in millions) Amounts Past Due (in ones) 2020 2019 2018 2017 2016 Prior Total Greater than $3,000 $ 0.7 $ 2.8 $ 1.6 $ 0.6 $ 0.1 $ — $ 5.8 Between $2,999 and $1,500 1.4 4.3 2.0 0.7 0.4 — 8.8 Less than $1,499 5.6 13.6 6.1 2.5 0.8 0.1 28.7 Total $ 7.7 $ 20.7 $ 9.7 $ 3.8 $ 1.3 $ 0.1 $ 43.3 Lease payments are generally due on a weekly basis and are classified as past due when past the due date. The following table presents an aging analysis of our lease payments owed to us which are classified as past due as of March 31, 2020 : (in millions) March 31, 2020 1-29 days $ 1.3 30-59 days 0.5 60-89 days 0.3 90 days or greater 0.4 Total past due $ 2.5 Our lease receivables are recorded net of an allowance for doubtful accounts based on an aging analysis to reserve amounts expected to not be collected. 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, which can be impacted by economic conditions, is not realized. Accrued interest on our leases is included within lease receivables on the consolidated balance sheets and was not material as of March 31, 2020 and December 31, 2019 . Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon notification of bankruptcy, death, or 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 both March 31, 2020 and December 31, 2019 , $0.2 million of our net investment in leases were on nonaccrual status. The table below provides additional information on our sales-type leases. Three Months Ended (in millions) 2020 2019 Revenue $ 54.7 $ 56.2 Cost of goods sold (48.9 ) (49.9 ) Operating profit $ 5.8 $ 6.3 Interest income on lease receivable $ 6.5 $ 6.6 Marketable Securities Our marketable securities are classified as available-for-sale and carried at fair value in current assets on the consolidated balance sheets. 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. With the adoption of ASU 2016-13, the guidance on reporting credit losses for available-for-sale debt securities was amended. Under this new guidance, credit losses are to be recorded through an allowance for credit losses rather than as a direct write-down to the security. As a result, any unrealized gains and losses, net of tax, are included as a component of accumulated other comprehensive income on the consolidated balance sheets, unless we determine that the amortized cost basis is not recoverable. If we determine that the amortized cost basis of the impaired security is not recoverable, we recognize the credit loss by increasing the allowance for those losses. Cost basis is determined using the specific identification method. When adopting this standard, we elected to continue to present the accrued interest receivable balance associated with our investments in marketable securities separate from the marketable securities line in the consolidated balance sheets. As of March 31, 2020 , accrued interest receivable associated with our investments in marketable securities was not material and is included with other receivables in the consolidated balance sheets. We have elected the practical expedient provided under the guidance to exclude the applicable accrued interest from the amortized cost basis disclosure of our marketable securities. We have also elected not to measure an allowance for credit losses on our accrued interest receivable and to write off accrued interest receivable by reversing interest income when it is not considered collectible. The following table presents the maturities and values of our marketable securities as of the dates shown: March 31, 2020 December 31, 2019 (in millions, except maturities in months) Maturities Amortized Cost Fair Value Amortized Cost Fair Value U.S. treasury and government agencies 12 to 79 $ 14.6 $ 14.9 $ 16.5 $ 17.0 Asset-backed securities 10 — — 0.1 0.1 Corporate debt securities 1 to 67 18.3 18.5 15.1 15.4 State and municipal bonds 3 to 66 11.6 11.8 11.6 11.8 Other U.S. and non-U.S. government bonds 4 to 54 4.0 4.0 4.0 4.0 Total marketable securities $ 48.5 $ 49.2 $ 47.3 $ 48.3 Gross realized gains and losses and net unrealized gains and losses, net of tax, on marketable securities were not material for the three months ended March 31, 2020 and 2019 . Additionally, we did not have an allowance for credit losses on our marketable securities as of March 31, 2020 or any other-than-temporary impairments as of December 31, 2019 , and our total unrealized gains and losses were not material as of March 31, 2020 and December 31, 2019 . |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | 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. Three Months Ended Disaggregated Revenues (in millions) 2020 2019 Transportation $ 1,028.3 $ 1,071.4 Logistics management 31.1 58.1 Other 59.7 64.6 Total operating revenues $ 1,119.1 $ 1,194.1 Quantitative Disclosures The following table provides information for transactions and expected timing of revenue recognition related to performance obligations that are fixed in nature and pertain to contracts with terms greater than one year as of date shown: Remaining Performance Obligations (in millions) March 31, 2020 Expected to be recognized within one year Transportation $ 2.6 Logistics management 9.0 Expected to be recognized after one year Transportation 0.6 Logistics management 13.0 Total $ 25.2 The information provided in the above table 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) March 31, 2020 December 31, 2019 Other current assets - Contract assets $ 22.2 $ 17.6 Other current liabilities - Contract liabilities — — We generally receive payment within 40 days of completing our 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 | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE Fair value is 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. The table below sets forth the Company’s financial assets that are measured at fair value on a recurring basis in accordance with ASC 820. Fair Value (in millions) Level in Fair March 31, 2020 December 31, 2019 Marketable securities (1) 2 $ 49.2 $ 48.3 (1) Marketable securities are 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 and are, therefore, classified as Level 2 in the fair value hierarchy. We measure our marketable securities on a recurring, monthly basis. See Note 6 , Investments , for additional information on the fair value of our marketable securities. The fair value of the Company's debt was $331.5 million and $368.5 million as of March 31, 2020 and December 31, 2019 , respectively. The carrying value of the Company's debt was $335.0 million and $360.0 million as of March 31, 2020 and December 31, 2019 , respectively. The fair value of our debt was calculated using a fixed-rate debt portfolio with similar terms and maturities, which is based on the borrowing rates available to us in the applicable year. This valuation used Level 2 inputs. The recorded value of cash, trade accounts receivable, lease receivables, and trade accounts payable approximates fair value. Our ownership interest in PSI discussed in Note 6 , Investments , does not have a readily determinable fair value and is accounted for using the measurement alternative in ASC 321-10-35-2. Our interest was revalued in the period ending March 31, 2020 using Level 3 inputs and is recorded at fair value. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Debt Securities, Available-for-sale [Abstract] | |
Investments | 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. 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. With the adoption of ASU 2016-13, the guidance on reporting credit losses for available-for-sale debt securities was amended. Under this new guidance, credit losses are to be recorded through an allowance for credit losses rather than as a direct write-down to the security. As a result, any unrealized gains and losses, net of tax, are included as a component of accumulated other comprehensive income on the consolidated balance sheets, unless we determine that the amortized cost basis is not recoverable. If we determine that the amortized cost basis of the impaired security is not recoverable, we recognize the credit loss by increasing the allowance for those losses. Cost basis is determined using the specific identification method. When adopting this standard, we elected to continue to present the accrued interest receivable balance associated with our investments in marketable securities separate from the marketable securities line in the consolidated balance sheets. As of March 31, 2020 , accrued interest receivable associated with our investments in marketable securities was not material and is included with other receivables in the consolidated balance sheets. We have elected the practical expedient provided under the guidance to exclude the applicable accrued interest from the amortized cost basis disclosure of our marketable securities. We have also elected not to measure an allowance for credit losses on our accrued interest receivable and to write off accrued interest receivable by reversing interest income when it is not considered collectible. The following table presents the maturities and values of our marketable securities as of the dates shown: March 31, 2020 December 31, 2019 (in millions, except maturities in months) Maturities Amortized Cost Fair Value Amortized Cost Fair Value U.S. treasury and government agencies 12 to 79 $ 14.6 $ 14.9 $ 16.5 $ 17.0 Asset-backed securities 10 — — 0.1 0.1 Corporate debt securities 1 to 67 18.3 18.5 15.1 15.4 State and municipal bonds 3 to 66 11.6 11.8 11.6 11.8 Other U.S. and non-U.S. government bonds 4 to 54 4.0 4.0 4.0 4.0 Total marketable securities $ 48.5 $ 49.2 $ 47.3 $ 48.3 Gross realized gains and losses and net unrealized gains and losses, net of tax, on marketable securities were not material for the three months ended March 31, 2020 and 2019 . Additionally, we did not have an allowance for credit losses on our marketable securities as of March 31, 2020 or any other-than-temporary impairments as of December 31, 2019 , and our total unrealized gains and losses were not material as of March 31, 2020 and December 31, 2019 . Ownership Interest in Platform Science, Inc. In 2018, the Company made a strategic decision to invest in PSI and acquired an ownership interest in exchange for granting them a non-exclusive license to our proprietary telematics mobile software that was developed to enable enhanced driver productivity and ensure regulatory compliance. Our ownership interest is being accounted for under ASC 321, Investments - Equity Securities using the measurement alternative and is recorded in other noncurrent assets on the consolidated balance sheets. During the first quarter of 2020, a remeasurement event occurred which required the Company to revalue our interest in PSI. This resulted in the recognition of a $6.1 million pre-tax gain recorded within other income on the consolidated statement of comprehensive income for the three months ended March 31, 2020 . The fair value of our ownership interest as of March 31, 2020 and December 31, 2019 was $9.6 million and $3.5 million , respectively, and our ownership percentage was 12% as of March 31, 2020 . |
Credit Loss on Financial Instruments | RECEIVABLES Trade Accounts Receivable and Allowance Our trade accounts receivable is recorded net of an allowance for doubtful accounts and revenue adjustments. The allowance is based on an aging analysis using historical experience, as well as any known and expected trends or uncertainties related to customer billing and account collectability. The adequacy of our allowance is reviewed at least quarterly, and receivables that are not expected to be collected are reserved for. In circumstances where we are aware of a customer's inability to meet its financial obligations, a specific reserve is recorded to reduce the net receivable to the amount we reasonably expect to collect. Bad debt expense is included in other general expenses in the consolidated statements of comprehensive income. The following table shows changes to our trade accounts receivable allowance for doubtful accounts for the three months ended March 31, 2020 . Excluded from the amounts below is the portion of the allowance recorded for revenue adjustments, as that portion is not credit-related nor due to a customer’s inability to meet its financial obligations. Three Months Ended (in millions) 2020 Balance at beginning of period $ 0.9 Charges to expense 0.3 Write-offs (0.3 ) Recoveries 0.1 Balance at end of period $ 1.0 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 include office equipment and truck washes. The majority of our leases include an option to extend the lease, and a small number of our leases include an option to terminate the lease early, which may include a termination payment. Additional information related to our leases is as follows: Three Months Ended (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 8.6 $ 8.8 Operating cash flows from finance leases — 0.1 Financing cash flows from finance leases 0.2 0.7 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 7.4 $ 11.2 Finance leases 0.3 — As of March 31, 2020 , we had additional leases signed that had not yet commenced of $4.2 million . These leases will commence during the remainder of 2020 and have lease terms of five years . 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 accounted for as sales-type leases with fully guaranteed residual values. 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 contractual residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values. As of March 31, 2020 and December 31, 2019 , the investments in lease receivables were as follows: (in millions) March 31, 2020 December 31, 2019 Future minimum payments to be received on leases $ 141.9 $ 135.0 Guaranteed residual lease values 122.1 126.6 Total minimum lease payments to be received 264.0 261.6 Unearned income (33.3 ) (30.7 ) Net investment in leases 230.7 230.9 Current maturities of lease receivables 119.0 122.1 Allowance for doubtful accounts (0.7 ) (0.6 ) Current portion of lease receivables—net of allowance 118.3 121.5 Lease receivables—noncurrent $ 112.4 $ 109.4 Before entering into a lease contract, we assess the credit quality of the potential lessee through the use of credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. As part of our ongoing monitoring of the credit quality of our lease portfolio, on a weekly basis we track amounts past due, days past due, and outstanding maintenance account balances, including running subsequent credit checks as needed. The following table presents our net investment in leases, which includes both current and future lease payments, as of March 31, 2020 by amounts past due, our primary ongoing credit quality indicator, and lease origination year: Net Investment in Leases by Lease Origination Year (in millions) Amounts Past Due (in ones) 2020 2019 2018 2017 2016 Prior Total Greater than $3,000 $ 0.7 $ 2.8 $ 1.6 $ 0.6 $ 0.1 $ — $ 5.8 Between $2,999 and $1,500 1.4 4.3 2.0 0.7 0.4 — 8.8 Less than $1,499 5.6 13.6 6.1 2.5 0.8 0.1 28.7 Total $ 7.7 $ 20.7 $ 9.7 $ 3.8 $ 1.3 $ 0.1 $ 43.3 Lease payments are generally due on a weekly basis and are classified as past due when past the due date. The following table presents an aging analysis of our lease payments owed to us which are classified as past due as of March 31, 2020 : (in millions) March 31, 2020 1-29 days $ 1.3 30-59 days 0.5 60-89 days 0.3 90 days or greater 0.4 Total past due $ 2.5 Our lease receivables are recorded net of an allowance for doubtful accounts based on an aging analysis to reserve amounts expected to not be collected. 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, which can be impacted by economic conditions, is not realized. Accrued interest on our leases is included within lease receivables on the consolidated balance sheets and was not material as of March 31, 2020 and December 31, 2019 . Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon notification of bankruptcy, death, or 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 both March 31, 2020 and December 31, 2019 , $0.2 million of our net investment in leases were on nonaccrual status. The table below provides additional information on our sales-type leases. Three Months Ended (in millions) 2020 2019 Revenue $ 54.7 $ 56.2 Cost of goods sold (48.9 ) (49.9 ) Operating profit $ 5.8 $ 6.3 Interest income on lease receivable $ 6.5 $ 6.6 Marketable Securities Our marketable securities are classified as available-for-sale and carried at fair value in current assets on the consolidated balance sheets. 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. With the adoption of ASU 2016-13, the guidance on reporting credit losses for available-for-sale debt securities was amended. Under this new guidance, credit losses are to be recorded through an allowance for credit losses rather than as a direct write-down to the security. As a result, any unrealized gains and losses, net of tax, are included as a component of accumulated other comprehensive income on the consolidated balance sheets, unless we determine that the amortized cost basis is not recoverable. If we determine that the amortized cost basis of the impaired security is not recoverable, we recognize the credit loss by increasing the allowance for those losses. Cost basis is determined using the specific identification method. When adopting this standard, we elected to continue to present the accrued interest receivable balance associated with our investments in marketable securities separate from the marketable securities line in the consolidated balance sheets. As of March 31, 2020 , accrued interest receivable associated with our investments in marketable securities was not material and is included with other receivables in the consolidated balance sheets. We have elected the practical expedient provided under the guidance to exclude the applicable accrued interest from the amortized cost basis disclosure of our marketable securities. We have also elected not to measure an allowance for credit losses on our accrued interest receivable and to write off accrued interest receivable by reversing interest income when it is not considered collectible. The following table presents the maturities and values of our marketable securities as of the dates shown: March 31, 2020 December 31, 2019 (in millions, except maturities in months) Maturities Amortized Cost Fair Value Amortized Cost Fair Value U.S. treasury and government agencies 12 to 79 $ 14.6 $ 14.9 $ 16.5 $ 17.0 Asset-backed securities 10 — — 0.1 0.1 Corporate debt securities 1 to 67 18.3 18.5 15.1 15.4 State and municipal bonds 3 to 66 11.6 11.8 11.6 11.8 Other U.S. and non-U.S. government bonds 4 to 54 4.0 4.0 4.0 4.0 Total marketable securities $ 48.5 $ 49.2 $ 47.3 $ 48.3 Gross realized gains and losses and net unrealized gains and losses, net of tax, on marketable securities were not material for the three months ended March 31, 2020 and 2019 . Additionally, we did not have an allowance for credit losses on our marketable securities as of March 31, 2020 or any other-than-temporary impairments as of December 31, 2019 , and our total unrealized gains and losses were not material as of March 31, 2020 and December 31, 2019 . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
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. The following table shows changes to our goodwill balances by reportable segment during the period ended March 31, 2020 . (in millions) Truckload Logistics Other Total Balance at December 31, 2019 $ 103.6 $ 14.2 $ 9.7 $ 127.5 Foreign currency translation — — (0.2 ) (0.2 ) Balance at March 31, 2020 $ 103.6 $ 14.2 $ 9.5 $ 127.3 At March 31, 2020 and December 31, 2019 , we had accumulated goodwill impairment charges of $42.6 million . As of the periods ending March 31, 2020 and December 31, 2019 , our customer lists had a gross carrying value of $ 1.1 million and a net carrying value of $0 . |
Debt and Credit Facilities
Debt and Credit Facilities | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES As of March 31, 2020 and December 31, 2019 , debt included the following: (in millions) March 31, 2020 December 31, 2019 Unsecured senior notes: principal payable at maturities ranging from 2020 through 2025; interest payable in semiannual installments through the same timeframe; weighted-average interest rate of 3.53% and 3.42% for 2020 and 2019, respectively. $ 335.0 $ 360.0 Current maturities (30.0 ) (55.0 ) Debt issuance costs (0.3 ) (0.4 ) Long-term debt $ 304.7 $ 304.6 Our Credit Agreement (the “2018 Credit Facility”) provides borrowing capacity of $250.0 million and allows us to request an increase in total commitment of 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 March 31, 2020 or December 31, 2019 . Standby letters of credit under this agreement amounted to $3.9 million and $3.8 million at March 31, 2020 and December 31, 2019 , respectively, 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 March 31, 2020 or December 31, 2019 . At March 31, 2020 and December 31, 2019 , standby letters of credit under this agreement amounted to $70.3 million and were primarily related to the requirements of certain of our insurance obligations. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective income tax rate was 24.9% and 25.4% for the three months ended March 31, 2020 and 2019 , respectively. In determining the quarterly provision for income taxes, we use an estimated annual effective tax rate, adjusted for discrete items. This rate is based on our expected annual income, statutory tax rates, and best estimate of nontaxable and nondeductible items of income and expense. |
Common Equity
Common Equity | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019 . Three Months Ended (in millions, except per share data) 2020 2019 Numerator: Net income available to common shareholders $ 43.8 $ 36.9 Denominator: Weighted average common shares outstanding 177.1 177.0 Effect of dilutive restricted share units 0.3 0.4 Weighted average diluted common shares outstanding 177.4 177.4 Basic earnings per common share $ 0.25 $ 0.21 Diluted earnings per common share 0.25 0.21 The calculation of diluted earnings per share for the three months ended March 31, 2020 excluded an immaterial amount of share-based compensation awards that had an anti-dilutive effect. Subsequent Event - Dividends Declared In April of 2020, our Board of Directors declared a quarterly cash dividend for the second fiscal quarter of 2020 in the amount of $0.065 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 June 12, 2020 and is expected to be paid on July 9, 2020. |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [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. Performance shares and PSUs are earned based on attainment of threshold performance of return on capital and earnings targets. Share-based compensation expense was $1.6 million and $2.0 million for the three months ended March 31, 2020 and 2019 , respectively. We recognize share-based compensation expense over the awards' vesting period. As of March 31, 2020 , we had $19.4 million of pre-tax unrecognized compensation cost related to outstanding share-based compensation awards expected to be recognized over a weighted-average period of 3 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. Equity-based awards granted during the first quarter of 2020 had a grant date fair value of $14.9 million and were as follows: 2020 Grants Number of Awards Granted Weighted Average Grant Date Fair Value Restricted shares and RSUs 259,992 $ 22.04 Performance shares and PSUs 350,525 22.04 Nonqualified stock options 233,636 6.34 Total grants 844,153 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , our firm commitments to purchase transportation equipment totaled $251.7 million. In October 2017, the representative of the former owners of WSL 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 . A trial date has been set for September 2020. We believe that we have strong defenses to this claim. A judgment by the Court against us could have a material adverse effect on our results of operations. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
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. The CODM reviews revenues for each segment exclusive 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 measure 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 reportable segments are eliminated in consolidation. Substantially all of our revenues and assets were generated or located within the U.S. 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 $24.7 million and $23.6 million for the three months ended March 31, 2020 and 2019 , respectively. Revenues by Segment Three Months Ended (in millions) 2020 2019 Truckload $ 469.4 $ 531.8 Intermodal 238.0 237.6 Logistics 239.6 243.9 Other 99.4 99.9 Fuel surcharge 103.0 111.8 Inter-segment eliminations (30.3 ) (30.9 ) Operating revenues $ 1,119.1 $ 1,194.1 Income (Loss) from Operations by Segment Three Months Ended (in millions) 2020 2019 Truckload $ 36.6 $ 23.2 Intermodal 16.3 19.9 Logistics 4.2 10.3 Other (2.2 ) (1.9 ) Income from operations $ 54.9 $ 51.5 Depreciation and Amortization Expense by Segment Three Months Ended (in millions) 2020 2019 Truckload $ 51.0 $ 53.4 Intermodal 10.8 10.9 Logistics — 0.1 Other 8.0 9.0 Depreciation and amortization expense $ 69.8 $ 73.4 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring Activity | |
Restructuring | RESTRUCTURING On July 29, 2019 , the Company’s Board of Directors approved a structured shutdown of its FTFM service offering within its Truckload reportable segment which was substantially complete as of August 31, 2019 . All of the restructuring activity was recorded within our Truckload reportable segment. Pre-tax losses of our FTFM service offering were $12.1 million for the three months ended March 31, 2019 . The activity associated with the shutdown is presented separately on the consolidated statements of comprehensive income within restructuring—net. The following table summarizes the restructuring activity: Three Months Ended Cumulative (in millions) March 31, 2020 Impairment charges and (gains) losses on asset disposals $ (1.1 ) $ 45.0 Receivable (recoveries) write-downs (0.6 ) 3.3 Other costs 0.5 14.2 Total restructuring—net $ (1.2 ) $ 62.5 As of March 31, 2020 and December 31, 2019 , FTFM restructuring liabilities were classified as current liabilities on the consolidated balance sheets as follows: (in millions) Restructuring Liabilities Balance at December 31, 2018 $ — Restructuring—net 13.7 Cash payments (8.6 ) Balance at December 31, 2019 5.1 Restructuring—net 0.5 Cash payments (0.9 ) Balance at March 31, 2020 $ 4.7 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. As of March 31, 2020 and December 31, 2019 , assets held for sale, net of impairment, within our Truckload segment were $47.1 million and $63.5 million , respectively, of which $27.8 million and $33.4 million related to the shutdown of our FTFM service offering, respectively. Assets held for sale, net of impairment, are included in prepaid expenses and other current assets in the consolidated balance sheets. |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations 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. Schneider is a transportation service organization headquartered in Green Bay, Wisconsin and has three reportable segments focused on providing truckload, intermodal, and logistics solutions. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in conformity 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, 2019 . 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. |
COVID-19 | COVID-19 There are many uncertainties regarding the COVID-19 pandemic, and the Company is closely monitoring the impact of the pandemic on all aspects of its business, including how it will impact its customers, employees, owner-operators, and business partners. While the pandemic did not have a significant impact on the Company’s operational or financial results in the quarter ended March 31, 2020, we are unable to predict the impact COVID-19 will have on its future financial position and operating results due to numerous uncertainties. The Company will continue to assess the impact of the COVID-19 pandemic as it evolves. |
Accounting Standards Issued but Not Yet Adopted and Recently Adopted | Accounting Standards Issued but Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. This guidance offers optional expedients and exceptions for applying GAAP to transactions, including contract modifications, hedging relationships, and the sale or transfer of debt securities classified as held-to-maturity affected by reference rate reform, if certain criteria are met. Entities may elect to apply the provisions of this new standard as early as March 12, 2020 until December 31, 2022, when the reference rate replacement activity is expected to be complete. We are currently evaluating the impact the adoption of this ASU will have on our consolidated financial statements and related disclosures and have not yet elected an adoption date. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which reduces complexity in accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and clarifying and amending existing guidance to improve consistent application among reporting entities. ASU 2019-12 is effective for us as of January 1, 2021 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. Accounting Standards Recently Adopted We adopted ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which amends ASC 350, as of January 1, 2020 on a prospective basis. This standard aligned 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. The adoption did not have a material impact on our consolidated financial statements or disclosures. We adopted ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which is codified in ASC 326, as of January 1, 2020. The guidance replaced the incurred loss model with a methodology that reflects expected credit losses over the life of the financial assets held at the reporting date based on historical experience, as well as considerations of current conditions and reasonable and supportable forecasts. This new model for estimating our expected credit losses was implemented for our trade accounts receivable and reinsurance recoverables ( Note 2 , Receivables ), net investment in leases ( Note 3 , Leases ), and available-for-sale debt securities ( Note 6 , Investments ) and did not result in a material impact to our consolidated financial statements or disclosures upon adoption. |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Trade Accounts Receivable Allowance for Uncollectible Accounts Rollforward | The following table shows changes to our trade accounts receivable allowance for doubtful accounts for the three months ended March 31, 2020 . Excluded from the amounts below is the portion of the allowance recorded for revenue adjustments, as that portion is not credit-related nor due to a customer’s inability to meet its financial obligations. Three Months Ended (in millions) 2020 Balance at beginning of period $ 0.9 Charges to expense 0.3 Write-offs (0.3 ) Recoveries 0.1 Balance at end of period $ 1.0 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Lease Information | Additional information related to our leases is as follows: Three Months Ended (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 8.6 $ 8.8 Operating cash flows from finance leases — 0.1 Financing cash flows from finance leases 0.2 0.7 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 7.4 $ 11.2 Finance leases 0.3 — |
Schedule of Investment In Lease Receivables | As of March 31, 2020 and December 31, 2019 , the investments in lease receivables were as follows: (in millions) March 31, 2020 December 31, 2019 Future minimum payments to be received on leases $ 141.9 $ 135.0 Guaranteed residual lease values 122.1 126.6 Total minimum lease payments to be received 264.0 261.6 Unearned income (33.3 ) (30.7 ) Net investment in leases 230.7 230.9 Current maturities of lease receivables 119.0 122.1 Allowance for doubtful accounts (0.7 ) (0.6 ) Current portion of lease receivables—net of allowance 118.3 121.5 Lease receivables—noncurrent $ 112.4 $ 109.4 |
Schedule of Net Investment in Leases by Credit Quality Indicator | The following table presents our net investment in leases, which includes both current and future lease payments, as of March 31, 2020 by amounts past due, our primary ongoing credit quality indicator, and lease origination year: Net Investment in Leases by Lease Origination Year (in millions) Amounts Past Due (in ones) 2020 2019 2018 2017 2016 Prior Total Greater than $3,000 $ 0.7 $ 2.8 $ 1.6 $ 0.6 $ 0.1 $ — $ 5.8 Between $2,999 and $1,500 1.4 4.3 2.0 0.7 0.4 — 8.8 Less than $1,499 5.6 13.6 6.1 2.5 0.8 0.1 28.7 Total $ 7.7 $ 20.7 $ 9.7 $ 3.8 $ 1.3 $ 0.1 $ 43.3 |
Schedule of Lease Payments Past Due | The following table presents an aging analysis of our lease payments owed to us which are classified as past due as of March 31, 2020 : (in millions) March 31, 2020 1-29 days $ 1.3 30-59 days 0.5 60-89 days 0.3 90 days or greater 0.4 Total past due $ 2.5 |
Schedule of Sales-type Lease Income | The table below provides additional information on our sales-type leases. Three Months Ended (in millions) 2020 2019 Revenue $ 54.7 $ 56.2 Cost of goods sold (48.9 ) (49.9 ) Operating profit $ 5.8 $ 6.3 Interest income on lease receivable $ 6.5 $ 6.6 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes our revenues by type of service. Three Months Ended Disaggregated Revenues (in millions) 2020 2019 Transportation $ 1,028.3 $ 1,071.4 Logistics management 31.1 58.1 Other 59.7 64.6 Total operating revenues $ 1,119.1 $ 1,194.1 |
Remaining Performance Obligations | The following table provides information for transactions and expected timing of revenue recognition related to performance obligations that are fixed in nature and pertain to contracts with terms greater than one year as of date shown: Remaining Performance Obligations (in millions) March 31, 2020 Expected to be recognized within one year Transportation $ 2.6 Logistics management 9.0 Expected to be recognized after one year Transportation 0.6 Logistics management 13.0 Total $ 25.2 |
Contract Balances | The following table provides information related to contract balances associated with our contracts with customers as of the dates shown. Contract Balances (in millions) March 31, 2020 December 31, 2019 Other current assets - Contract assets $ 22.2 $ 17.6 Other current liabilities - Contract liabilities — — |
Recurring Fair Value Measuremen
Recurring Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets measured on recurring basis | The table below sets forth the Company’s financial assets that are measured at fair value on a recurring basis in accordance with ASC 820. Fair Value (in millions) Level in Fair March 31, 2020 December 31, 2019 Marketable securities (1) 2 $ 49.2 $ 48.3 (1) Marketable securities are 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 and are, therefore, classified as Level 2 in the fair value hierarchy. We measure our marketable securities on a recurring, monthly basis. See Note 6 , Investments , for additional information on the fair value of our marketable securities. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Securities, Available-for-sale [Abstract] | |
Schedule of Marketable Securities | The following table presents the maturities and values of our marketable securities as of the dates shown: March 31, 2020 December 31, 2019 (in millions, except maturities in months) Maturities Amortized Cost Fair Value Amortized Cost Fair Value U.S. treasury and government agencies 12 to 79 $ 14.6 $ 14.9 $ 16.5 $ 17.0 Asset-backed securities 10 — — 0.1 0.1 Corporate debt securities 1 to 67 18.3 18.5 15.1 15.4 State and municipal bonds 3 to 66 11.6 11.8 11.6 11.8 Other U.S. and non-U.S. government bonds 4 to 54 4.0 4.0 4.0 4.0 Total marketable securities $ 48.5 $ 49.2 $ 47.3 $ 48.3 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | Goodwill represents the excess of the purchase price of our acquisitions over the fair value of the identifiable net assets acquired. The following table shows changes to our goodwill balances by reportable segment during the period ended March 31, 2020 . (in millions) Truckload Logistics Other Total Balance at December 31, 2019 $ 103.6 $ 14.2 $ 9.7 $ 127.5 Foreign currency translation — — (0.2 ) (0.2 ) Balance at March 31, 2020 $ 103.6 $ 14.2 $ 9.5 $ 127.3 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Debt | As of March 31, 2020 and December 31, 2019 , debt included the following: (in millions) March 31, 2020 December 31, 2019 Unsecured senior notes: principal payable at maturities ranging from 2020 through 2025; interest payable in semiannual installments through the same timeframe; weighted-average interest rate of 3.53% and 3.42% for 2020 and 2019, respectively. $ 335.0 $ 360.0 Current maturities (30.0 ) (55.0 ) Debt issuance costs (0.3 ) (0.4 ) Long-term debt $ 304.7 $ 304.6 |
Common Equity (Tables)
Common Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019 . Three Months Ended (in millions, except per share data) 2020 2019 Numerator: Net income available to common shareholders $ 43.8 $ 36.9 Denominator: Weighted average common shares outstanding 177.1 177.0 Effect of dilutive restricted share units 0.3 0.4 Weighted average diluted common shares outstanding 177.4 177.4 Basic earnings per common share $ 0.25 $ 0.21 Diluted earnings per common share 0.25 0.21 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based grants | Equity-based awards granted during the first quarter of 2020 had a grant date fair value of $14.9 million and were as follows: 2020 Grants Number of Awards Granted Weighted Average Grant Date Fair Value Restricted shares and RSUs 259,992 $ 22.04 Performance shares and PSUs 350,525 22.04 Nonqualified stock options 233,636 6.34 Total grants 844,153 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
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 $24.7 million and $23.6 million for the three months ended March 31, 2020 and 2019 , respectively. Revenues by Segment Three Months Ended (in millions) 2020 2019 Truckload $ 469.4 $ 531.8 Intermodal 238.0 237.6 Logistics 239.6 243.9 Other 99.4 99.9 Fuel surcharge 103.0 111.8 Inter-segment eliminations (30.3 ) (30.9 ) Operating revenues $ 1,119.1 $ 1,194.1 Income (Loss) from Operations by Segment Three Months Ended (in millions) 2020 2019 Truckload $ 36.6 $ 23.2 Intermodal 16.3 19.9 Logistics 4.2 10.3 Other (2.2 ) (1.9 ) Income from operations $ 54.9 $ 51.5 Depreciation and Amortization Expense by Segment Three Months Ended (in millions) 2020 2019 Truckload $ 51.0 $ 53.4 Intermodal 10.8 10.9 Logistics — 0.1 Other 8.0 9.0 Depreciation and amortization expense $ 69.8 $ 73.4 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Activity | The activity associated with the shutdown is presented separately on the consolidated statements of comprehensive income within restructuring—net. The following table summarizes the restructuring activity: Three Months Ended Cumulative (in millions) March 31, 2020 Impairment charges and (gains) losses on asset disposals $ (1.1 ) $ 45.0 Receivable (recoveries) write-downs (0.6 ) 3.3 Other costs 0.5 14.2 Total restructuring—net $ (1.2 ) $ 62.5 |
Schedule of Restructuring Reserve | As of March 31, 2020 and December 31, 2019 , FTFM restructuring liabilities were classified as current liabilities on the consolidated balance sheets as follows: (in millions) Restructuring Liabilities Balance at December 31, 2018 $ — Restructuring—net 13.7 Cash payments (8.6 ) Balance at December 31, 2019 5.1 Restructuring—net 0.5 Cash payments (0.9 ) Balance at March 31, 2020 $ 4.7 |
Receivables - Trade Accounts Re
Receivables - Trade Accounts Receivables Allowance for Uncollectible Accounts Rollforward (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Financing Receivable, Allowance for Credit Loss | |
Balance at beginning of period | $ 0.9 |
Charges to expense | 0.3 |
Write-offs | (0.3) |
Recoveries | 0.1 |
Balance at end of period | $ 1 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Leases | ||
Leases not yet commenced | $ 4.2 | |
Sales-type net investment in lease on nonaccrual status | $ 0.2 | $ 0.2 |
Minimum | ||
Leases | ||
Lease terms of leases not yet commenced | 5 years | |
Terms of sales-type lease | 1 year | |
Maximum | ||
Leases | ||
Lease terms of leases not yet commenced | 5 years | |
Terms of sales-type lease | 5 years |
Leases - Schedule of Lease Info
Leases - Schedule of Lease Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 8.6 | $ 8.8 |
Operating cash flows from finance leases | 0 | 0.1 |
Financing cash flows from finance leases | 0.2 | 0.7 |
Right-of-use assets obtained in exchange for new operating lease liability | 7.4 | 11.2 |
Right-of-use assets obtained in exchange for new finance lease liability | $ 0.3 | $ 0 |
Leases - Summary of Investment
Leases - Summary of Investment in Lease Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Future minimum payments to be received on leases | $ 141.9 | $ 135 |
Guaranteed residual lease values | 122.1 | 126.6 |
Total minimum lease payments to be received | 264 | 261.6 |
Unearned income | (33.3) | (30.7) |
Net investment in leases | 230.7 | 230.9 |
Current maturities of lease receivables | 119 | 122.1 |
Allowance for doubtful accounts | (0.7) | (0.6) |
Current portion of lease receivables—net of allowance | 118.3 | 121.5 |
Lease receivables—noncurrent | $ 112.4 | $ 109.4 |
Leases - Schedule of Net Invest
Leases - Schedule of Net Investment in Leases by Credit Quality Indicator (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Sales-type Lease, Net Investment in Lease, Credit Quality Indicator | ||
Net investment in leases | $ 230.7 | $ 230.9 |
Greater than $3,000 past due | ||
Sales-type Lease, Net Investment in Lease, Credit Quality Indicator | ||
Net investment in leases - 2020 lease origination year | 0.7 | |
Net investment in leases - 2019 lease origination year | 2.8 | |
Net investment in leases - 2018 lease origination year | 1.6 | |
Net investment in leases - 2017 lease origination year | 0.6 | |
Net investment in leases - 2016 lease origination year | 0.1 | |
Net investment in leases - 2015 and prior lease origination year | 0 | |
Net investment in leases | 5.8 | |
Between $2,999 and $1,500 past due | ||
Sales-type Lease, Net Investment in Lease, Credit Quality Indicator | ||
Net investment in leases - 2020 lease origination year | 1.4 | |
Net investment in leases - 2019 lease origination year | 4.3 | |
Net investment in leases - 2018 lease origination year | 2 | |
Net investment in leases - 2017 lease origination year | 0.7 | |
Net investment in leases - 2016 lease origination year | 0.4 | |
Net investment in leases - 2015 and prior lease origination year | 0 | |
Net investment in leases | 8.8 | |
Less than $1,499 past due | ||
Sales-type Lease, Net Investment in Lease, Credit Quality Indicator | ||
Net investment in leases - 2020 lease origination year | 5.6 | |
Net investment in leases - 2019 lease origination year | 13.6 | |
Net investment in leases - 2018 lease origination year | 6.1 | |
Net investment in leases - 2017 lease origination year | 2.5 | |
Net investment in leases - 2016 lease origination year | 0.8 | |
Net investment in leases - 2015 and prior lease origination year | 0.1 | |
Net investment in leases | 28.7 | |
Total past due | ||
Sales-type Lease, Net Investment in Lease, Credit Quality Indicator | ||
Net investment in leases - 2020 lease origination year | 7.7 | |
Net investment in leases - 2019 lease origination year | 20.7 | |
Net investment in leases - 2018 lease origination year | 9.7 | |
Net investment in leases - 2017 lease origination year | 3.8 | |
Net investment in leases - 2016 lease origination year | 1.3 | |
Net investment in leases - 2015 and prior lease origination year | 0.1 | |
Net investment in leases | $ 43.3 |
Leases - Schedule of Lease Paym
Leases - Schedule of Lease Payments Past Due (Details) $ in Millions | Mar. 31, 2020USD ($) |
Sales-type lease | |
Lease payments past due | $ 2.5 |
1 to 29 days | |
Sales-type lease | |
Lease payments past due | 1.3 |
30 to 59 days | |
Sales-type lease | |
Lease payments past due | 0.5 |
60 to 89 days | |
Sales-type lease | |
Lease payments past due | 0.3 |
90 days or greater | |
Sales-type lease | |
Lease payments past due | $ 0.4 |
Leases - Schedule of Sales-type
Leases - Schedule of Sales-type Lease Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Revenue | $ 54.7 | $ 56.2 |
Cost of goods sold | (48.9) | (49.9) |
Operating profit | 5.8 | 6.3 |
Interest income on lease receivable | $ 6.5 | $ 6.6 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue | ||
Operating revenues | $ 1,119.1 | $ 1,194.1 |
Transportation | ||
Disaggregation of Revenue | ||
Operating revenues | 1,028.3 | 1,071.4 |
Logistics Management | ||
Disaggregation of Revenue | ||
Operating revenues | 31.1 | 58.1 |
Other | ||
Disaggregation of Revenue | ||
Operating revenues | $ 59.7 | $ 64.6 |
Revenue Recognition Revenue, Re
Revenue Recognition Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Millions | Mar. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining Performance Obligation | $ 25.2 |
Expected to be recognized within one year | Transportation | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining Performance Obligation | 2.6 |
Expected to be recognized within one year | Logistics Management | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining Performance Obligation | 9 |
Expected to be recognized after one year | Transportation | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining Performance Obligation | 0.6 |
Expected to be recognized after one year | Logistics Management | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining Performance Obligation | $ 13 |
Revenue Recognition Contract wi
Revenue Recognition Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 22.2 | $ 17.6 |
Contract liabilities | $ 0 | $ 0 |
Fair Value Recurring Fair Value
Fair Value Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Recurring fair value measurements | Level 2 inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of marketable securities | $ 49.2 | $ 48.3 |
Fair Value Debt Portfolio (Deta
Fair Value Debt Portfolio (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument | ||
Fair value of debt | $ 331.5 | $ 368.5 |
Unsecured Senior Notes | ||
Debt Instrument | ||
Total principal outstanding | $ 335 | $ 360 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2020 | |
Available for Sale Debt Securities | ||
Credit loss allowance | $ 0 | |
Other-than-temporary impairment loss | $ 0 |
Investments - Schedule of Marke
Investments - Schedule of Marketable Securities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Available for Sale Debt Securities | ||
Amortized cost | $ 48.5 | $ 47.3 |
Fair value | 49.2 | 48.3 |
Current Asset | U.S. treasury and government agencies | ||
Available for Sale Debt Securities | ||
Amortized cost | 14.6 | 16.5 |
Fair value | 14.9 | 17 |
Current Asset | Asset-backed securities | ||
Available for Sale Debt Securities | ||
Amortized cost | 0 | 0.1 |
Fair value | 0 | 0.1 |
Current Asset | Corporate debt securities | ||
Available for Sale Debt Securities | ||
Amortized cost | 18.3 | 15.1 |
Fair value | 18.5 | 15.4 |
Current Asset | State and municipal bonds | ||
Available for Sale Debt Securities | ||
Amortized cost | 11.6 | 11.6 |
Fair value | 11.8 | 11.8 |
Current Asset | Other U.S. and non-U.S. government bonds | ||
Available for Sale Debt Securities | ||
Amortized cost | 4 | 4 |
Fair value | $ 4 | $ 4 |
Minimum | U.S. treasury and government agencies | ||
Available for Sale Debt Securities | ||
Maturity date | Mar. 31, 2021 | |
Minimum | Asset-backed securities | ||
Available for Sale Debt Securities | ||
Maturity date | Jan. 2, 2021 | |
Minimum | Corporate debt securities | ||
Available for Sale Debt Securities | ||
Maturity date | Apr. 15, 2020 | |
Minimum | State and municipal bonds | ||
Available for Sale Debt Securities | ||
Maturity date | Jun. 15, 2020 | |
Minimum | Other U.S. and non-U.S. government bonds | ||
Available for Sale Debt Securities | ||
Maturity date | Jul. 15, 2020 | |
Maximum | U.S. treasury and government agencies | ||
Available for Sale Debt Securities | ||
Maturity date | Oct. 30, 2026 | |
Maximum | Asset-backed securities | ||
Available for Sale Debt Securities | ||
Maturity date | Jan. 2, 2021 | |
Maximum | Corporate debt securities | ||
Available for Sale Debt Securities | ||
Maturity date | Oct. 22, 2025 | |
Maximum | State and municipal bonds | ||
Available for Sale Debt Securities | ||
Maturity date | Sep. 15, 2025 | |
Maximum | Other U.S. and non-U.S. government bonds | ||
Available for Sale Debt Securities | ||
Maturity date | Sep. 23, 2024 |
Investments - Investment in Pla
Investments - Investment in Platform Science, Inc. (Details) - Platform Science, Inc. - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Other Investments | ||
Gain on interest in Platform Science, Inc. | $ 6.1 | |
Fair value of ownership interest in Platform Science, Inc. | $ 9.6 | $ 3.5 |
Ownership interest in Platform Science, Inc. | 12.00% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill | |
Beginning balance | $ 127.5 |
Foreign currency translation | (0.2) |
Ending balance | 127.3 |
Truckload | |
Goodwill | |
Beginning balance | 103.6 |
Foreign currency translation | 0 |
Ending balance | 103.6 |
Logistics | |
Goodwill | |
Beginning balance | 14.2 |
Foreign currency translation | 0 |
Ending balance | 14.2 |
Other | |
Goodwill | |
Beginning balance | 9.7 |
Foreign currency translation | (0.2) |
Ending balance | $ 9.5 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Accumulated goodwill impairment charge | $ 42.6 | $ 42.6 |
Customer list gross carrying value | 1.1 | 1.1 |
Customer list net carrying value | $ 0 | $ 0 |
Debt and Credit Facilities - Su
Debt and Credit Facilities - Summary of Debt (Details) - Unsecured Senior Notes - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument | ||
Total principal outstanding | $ 335 | $ 360 |
Frequency of payments | Semiannual | Semiannual |
Current maturities | $ (30) | $ (55) |
Debt issuance costs | (0.3) | (0.4) |
Long-term debt | $ 304.7 | $ 304.6 |
Maturity year | 2025 | 2025 |
Weighted-average interest rate | 3.53% | 3.42% |
Debt and Credit Facilities - Ad
Debt and Credit Facilities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Credit Facility | ||
Debt Instrument | ||
Maximum borrowing capacity | $ 250 | |
Potential increase amount | 150 | |
Potential maximum borrowing capacity | $ 400 | |
Expiration date | Aug. 6, 2023 | |
Outstanding borrowings | $ 0 | $ 0 |
Credit Facility | Standby Letters of Credit | ||
Debt Instrument | ||
Maximum borrowing capacity | 100 | |
Standby letters of credit | 3.9 | 3.8 |
Receivables Purchase Agreement | ||
Debt Instrument | ||
Maximum borrowing capacity | $ 200 | |
Expiration date | Sep. 3, 2021 | |
Outstanding borrowings | $ 0 | 0 |
Receivables Purchase Agreement | Standby Letters of Credit | ||
Debt Instrument | ||
Standby letters of credit | $ 70.3 | $ 70.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 24.90% | 25.40% |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic earnings per common share | ||
Net income available to common shareholders | $ 43.8 | $ 36.9 |
Weighted average common shares outstanding | 177.1 | 177 |
Basic earnings per common share | $ 0.25 | $ 0.21 |
Diluted earnings per common share | ||
Effect of dilutive restricted share units | 0.3 | 0.4 |
Weighted average diluted shares outstanding | 177.4 | 177.4 |
Diluted earnings per common share | $ 0.25 | $ 0.21 |
Common Equity - Additional Info
Common Equity - Additional Information (Details) - $ / shares | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Class A Common Shares | |||
Class of Stock | |||
Dividends declared per share | $ 0.065 | $ 0.06 | |
Class A Common Shares | Subsequent Event | |||
Class of Stock | |||
Dividends declared per share | $ 0.065 | ||
Class B Common Stock | |||
Class of Stock | |||
Dividends declared per share | $ 0.065 | $ 0.06 | |
Class B Common Stock | Subsequent Event | |||
Class of Stock | |||
Dividends declared per share | $ 0.065 |
Share-based Compensation Compon
Share-based Compensation Components of Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 1.6 | $ 2 |
Share-based Compensation Additi
Share-based Compensation Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Share-based Payment Arrangement [Abstract] | |
Pre-tax unrecognized compensation cost | $ 19.4 |
Unrecognized compensation cost, period for recognition | 2 years 11 months 16 days |
Grant date fair value | $ 14.9 |
Share-based Compensation Summar
Share-based Compensation Summary of Grant Activity (Details) - 2017 Omnibus Incentive Plan | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total grants | 844,153 |
Restricted Shares and Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of awards and units grants | 259,992 |
Weighted average grant date fair value, awards and units | $ / shares | $ 22.04 |
Performance Shares and Performance Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of awards and units grants | 350,525 |
Weighted average grant date fair value, awards and units | $ / shares | $ 22.04 |
Non-Qualified Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of options granted | 233,636 |
Weighted average grant date fair value, options | $ / shares | $ 6.34 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jun. 30, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to purchase transportation equipment | $ 251.7 | |
WSL | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Contingent consideration arrangements, low range of outcomes | $ 0 | |
Contingent consideration arrangements, high range of outcomes | $ 40 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)Segment | Mar. 31, 2019USD ($) | |
Segment Reporting Information | ||
Number of reportable segments | Segment | 3 | |
Operating revenues | $ 1,119.1 | $ 1,194.1 |
Other | ||
Segment Reporting Information | ||
Operating revenues | 99.4 | 99.9 |
Other | Other Insurance | ||
Segment Reporting Information | ||
Operating revenues | $ 24.7 | $ 23.6 |
Segment Reporting - Revenue by
Segment Reporting - Revenue by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information | ||
Operating revenues | $ 1,119.1 | $ 1,194.1 |
Intersegment Eliminations | ||
Segment Reporting Information | ||
Operating revenues | (30.3) | (30.9) |
Truckload | ||
Segment Reporting Information | ||
Revenues (excluding fuel charge by segment) | 469.4 | 531.8 |
Intermodal | ||
Segment Reporting Information | ||
Revenues (excluding fuel charge by segment) | 238 | 237.6 |
Logistics | ||
Segment Reporting Information | ||
Revenues (excluding fuel charge by segment) | 239.6 | 243.9 |
Other | ||
Segment Reporting Information | ||
Operating revenues | 99.4 | 99.9 |
Fuel Surcharge | ||
Segment Reporting Information | ||
Operating revenues | $ 103 | $ 111.8 |
Segment Reporting - Income From
Segment Reporting - Income From Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information | ||
Income from operations | $ 54.9 | $ 51.5 |
Truckload | ||
Segment Reporting Information | ||
Income from operations | 36.6 | 23.2 |
Intermodal | ||
Segment Reporting Information | ||
Income from operations | 16.3 | 19.9 |
Logistics | ||
Segment Reporting Information | ||
Income from operations | 4.2 | 10.3 |
Other | ||
Segment Reporting Information | ||
Income from operations | $ (2.2) | $ (1.9) |
Segment Reporting - Depreciatio
Segment Reporting - Depreciation and Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information | ||
Depreciation and amortization expense | $ 69.8 | $ 73.4 |
Truckload | ||
Segment Reporting Information | ||
Depreciation and amortization expense | 51 | 53.4 |
Intermodal | ||
Segment Reporting Information | ||
Depreciation and amortization expense | 10.8 | 10.9 |
Logistics | ||
Segment Reporting Information | ||
Depreciation and amortization expense | 0 | 0.1 |
Other | ||
Segment Reporting Information | ||
Depreciation and amortization expense | $ 8 | $ 9 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Aug. 31, 2019 | Jul. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Restructuring Activity | |||||
Restructuring, initiation date | Jul. 29, 2019 | ||||
Restructuring, completion date | Aug. 31, 2019 | ||||
FTFM pre-tax losses | $ 12.1 | ||||
Truckload | |||||
Restructuring Activity | |||||
Assets held-for-sale | $ 47.1 | $ 63.5 | |||
FTFM service offering shutdown | |||||
Restructuring Activity | |||||
Assets held-for-sale | $ 27.8 | $ 33.4 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Restructuring Activity | ||||
Restructuring—net | $ (1.2) | $ 0 | ||
Truckload | ||||
Restructuring Activity | ||||
Restructuring—net | (1.2) | $ 62.5 | ||
Truckload | Impairment charges and (gains) losses on asset disposals | ||||
Restructuring Activity | ||||
Restructuring—net | (1.1) | 45 | ||
Truckload | Receivables (recoveries) write-down | ||||
Restructuring Activity | ||||
Restructuring—net | (0.6) | 3.3 | ||
Truckload | Other costs | ||||
Restructuring Activity | ||||
Restructuring—net | $ 0.5 | $ 14.2 | $ 13.7 |
Restructuring - Schedule of R_2
Restructuring - Schedule of Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Activity | |||||
Restructuring—net | $ (1.2) | $ 0 | |||
Cash payments | (0.9) | $ (8.6) | |||
Restructuring reserve | 4.7 | $ 4.7 | 5.1 | $ 0 | |
Truckload | |||||
Restructuring Activity | |||||
Restructuring—net | (1.2) | 62.5 | |||
Truckload | Impairment charges and (gains) losses on asset disposals | |||||
Restructuring Activity | |||||
Restructuring—net | (1.1) | 45 | |||
Truckload | Receivables (recoveries) write-down | |||||
Restructuring Activity | |||||
Restructuring—net | (0.6) | 3.3 | |||
Truckload | Other costs | |||||
Restructuring Activity | |||||
Restructuring—net | $ 0.5 | $ 14.2 | $ 13.7 |