Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 26, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | YRC Worldwide Inc. | |
Entity Central Index Key | 716,006 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 33,848,568 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 193.2 | $ 91.6 |
Restricted amounts held in escrow | 0 | 54.1 |
Accounts receivable, net | 546.7 | 488.3 |
Prepaid expenses and other | 61.9 | 66.1 |
Total current assets | 801.8 | 700.1 |
Property and Equipment: | ||
Cost | 2,754.9 | 2,770.2 |
Less – accumulated depreciation | (1,971.5) | (1,957.5) |
Net property and equipment | 783.4 | 812.7 |
Other assets | 72.4 | 72.7 |
Total Assets | 1,657.6 | 1,585.5 |
Liabilities and Shareholders’ Deficit | ||
Accounts payable | 206 | 172 |
Wages, vacations and employee benefits | 231.3 | 182.3 |
Claims and insurance accruals | 116.1 | 115.1 |
Other accrued taxes | 25.5 | 23.6 |
Other current and accrued liabilities | 23.4 | 20.6 |
Current maturities of long-term debt | 25.1 | 30.6 |
Total current liabilities | 627.4 | 544.2 |
Other Liabilities: | ||
Long-term debt, less current portion | 863 | 875.5 |
Deferred income taxes, net | 3.2 | 3.1 |
Pension and postretirement | 211.9 | 235.4 |
Claims and other liabilities | 280.9 | 280.8 |
Commitments and contingencies | ||
Shareholders’ Deficit: | ||
Preferred stock, $1 par value per share | 0 | 0 |
Common stock, $0.01 par value per share | 0.3 | 0.3 |
Capital surplus | 2,326.8 | 2,323.3 |
Accumulated deficit | (2,225.9) | (2,228.6) |
Accumulated other comprehensive loss | (337.3) | (355.8) |
Treasury stock, at cost (410 shares) | (92.7) | (92.7) |
Total shareholders’ deficit | (328.8) | (353.5) |
Total Liabilities and Shareholders’ Deficit | $ 1,657.6 | $ 1,585.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Treasury stock, shares (in shares) | 410 | 410 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Operating Revenue | $ 1,303.6 | $ 1,251.2 | $ 3,844.6 | $ 3,682.4 |
Operating Expenses: | ||||
Salaries, wages and employee benefits | 743 | 723.5 | 2,228.7 | 2,178.3 |
Fuel, operating expenses and supplies | 233.6 | 216.6 | 705.8 | 642.6 |
Purchased transportation | 183.4 | 169.1 | 516 | 463.2 |
Depreciation and amortization | 34.9 | 36.7 | 110.2 | 111 |
Other operating expenses | 65.6 | 60.6 | 188.8 | 187.4 |
Losses on property disposals, net | 1.9 | 1.3 | 7.3 | 3 |
Total operating expenses | 1,262.4 | 1,207.8 | 3,756.8 | 3,585.5 |
Operating Income | 41.2 | 43.4 | 87.8 | 96.9 |
Nonoperating Expenses: | ||||
Interest expense | 26.6 | 25.9 | 77.7 | 77 |
Non-union pension and postretirement benefits | 6.9 | 3.3 | 6 | 9.8 |
Other, net | 0.1 | 10.3 | (0.8) | 13 |
Nonoperating expenses, net | 33.6 | 39.5 | 82.9 | 99.8 |
Income (loss) before income taxes | 7.6 | 3.9 | 4.9 | (2.9) |
Income tax expense | 4.7 | 0.9 | 2.2 | 0.4 |
Net income (loss) | 2.9 | 3 | 2.7 | (3.3) |
Other comprehensive income, net of tax | 12.2 | 2.5 | 18.5 | 12.9 |
Comprehensive Income | $ 15.1 | $ 5.5 | $ 21.2 | $ 9.6 |
Average Common Shares Outstanding – Basic (in shares) | 33,051 | 32,723 | 32,827 | 32,550 |
Average Common Shares Outstanding – Diluted (in shares) | 33,995 | 33,592 | 33,755 | 32,550 |
Basic and Diluted Loss Per Share | ||||
Income (loss) Per Share – Basic (in dollars per share) | $ 0.09 | $ 0.09 | $ 0.08 | $ (0.10) |
Income (loss) Per Share – Diluted (in dollars per share) | $ 0.09 | $ 0.09 | $ 0.08 | $ (0.10) |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Activities: | ||
Net income (loss) | $ 2.7 | $ (3.3) |
Noncash items included in net income (loss): | ||
Depreciation and amortization | 110.2 | 111 |
Equity-based compensation and employee benefits expense | 16.2 | 16.9 |
Deferred income tax benefit, net | 0 | (4.8) |
Non-union pension settlement charge | 7.2 | 0 |
Losses on property disposals, net | 7.3 | 3 |
Other noncash items, net | 4.9 | 12.5 |
Changes in assets and liabilities, net: | ||
Accounts receivable | (58.9) | (78.8) |
Accounts payable | 32.9 | 12.9 |
Other operating assets | 3.1 | 11.4 |
Other operating liabilities | 32.3 | (14.2) |
Net cash provided by operating activities | 157.9 | 66.6 |
Investing Activities: | ||
Acquisition of property and equipment | (92.4) | (70.8) |
Proceeds from disposal of property and equipment | 4.9 | 8.2 |
Net cash used in investing activities | (87.5) | (62.6) |
Financing Activities: | ||
Repayments of long-term debt | (20.9) | (48.2) |
Debt issuance costs | 0 | (14.3) |
Payments for tax withheld on equity-based compensation | (2) | (2.4) |
Net cash used in financing activities | (22.9) | (64.9) |
Net Increase (Decrease) In Cash, Cash Equivalents and Restricted Amounts Held in Escrow | 47.5 | (60.9) |
Cash, Cash Equivalents and Restricted Amounts Held in Escrow, Beginning of Period | 145.7 | 275.7 |
Cash, Cash Equivalents and Restricted Amounts Held in Escrow, End of Period | 193.2 | 214.8 |
Supplemental Cash Flow Information: | ||
Interest paid | (71.3) | (78.7) |
Income tax refund (payment), net | $ (3.7) | $ 3.2 |
Statement of Consolidated Share
Statement of Consolidated Shareholders' Deficit (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($) $ in Millions | Total | Preferred Stock: | Common Stock: | Capital Surplus: | Accumulated Deficit: | Accumulated Other Comprehensive Loss: | Amortization of prior net losses | Amortization of prior service credit | Settlement adjustment | Net actuarial gain | Foreign currency translation adjustments | Treasury Stock, At Cost: |
Beginning balance at Dec. 31, 2017 | $ 2,323.3 | $ (2,228.6) | $ (355.8) | $ (92.7) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Equity-based compensation | 3.5 | |||||||||||
Net income | 2.7 | |||||||||||
Change in other comprehensive income | $ 11.1 | $ (0.3) | $ 7.2 | $ 0.7 | $ (0.2) | |||||||
Ending balance at Sep. 30, 2018 | $ (328.8) | $ 0 | $ 0.3 | $ 2,326.8 | $ (2,225.9) | $ (337.3) | $ (92.7) |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business YRC Worldwide Inc. (also referred to as “YRC Worldwide,” the “Company,” “we,” “us” or “our”) is a holding company that, through wholly owned operating subsidiaries, offers its customers a wide range of transportation services. YRC Worldwide has one of the largest, most comprehensive less-than-truckload (“LTL”) networks in North America with local, regional, national and international capabilities. Through our team of experienced service professionals, we offer expertise in LTL shipments and flexible supply chain solutions, ensuring customers can ship industrial, commercial and retail goods with confidence. Our reporting segments include the following: • YRC Freight is the reporting segment that focuses on longer haul business opportunities with national, regional and international services. YRC Freight provides for the movement of industrial, commercial and retail goods, primarily through centralized management. This reporting segment includes YRC Inc. (doing business as, and herein referred to as, “YRC Freight”), our LTL subsidiary, and Reimer Express Lines Ltd. (“YRC Reimer”). YRC Reimer is a subsidiary located in Canada that specializes in shipments into, across and out of Canada. In addition to the United States and Canada, YRC Freight also serves parts of Mexico and Puerto Rico. • Regional Transportation is the reporting segment for our transportation service providers focused on business opportunities in the regional and next-day delivery markets. Regional Transportation is comprised of USF Holland LLC (“Holland”), New Penn Motor Express LLC (“New Penn”) and USF Reddaway Inc. (“Reddaway”). These companies each provide regional, next-day ground services in their respective regions through a network of facilities located across the United States, Canada, and Puerto Rico. At September 30, 2018 , approximately 78% of our labor force is subject to collective bargaining agreements, which predominantly expire in March 2019. |
Principles of Consolidation
Principles of Consolidation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of YRC Worldwide and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. We report on a calendar year basis. The quarters of the Regional Transportation companies (with the exception of New Penn) consist of thirteen weeks that end on a Saturday either before or after the end of March, June and September, whereas all other operating segment quarters end on the natural calendar quarter end. For ease of reference, the calendar quarter end dates are used herein. We make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and notes. Actual results could differ from those estimates. We have prepared the Consolidated Financial Statements, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In our opinion, we have made all normal recurring adjustments necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods included in these financial statements. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted from these statements pursuant to SEC rules and regulations. Accordingly, the accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 . Certain reclassifications have been made to prior year’s consolidated financial statements to conform to current year presentation. Total net periodic pension cost associated with the Company’s non-union defined benefit plans that was previously reported in operating expenses in the income statement is now reported in nonoperating expenses due to the adoption of Accounting Standards Update (“ASU”) 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , discussed further below. This resulted in a $3.3 million and $9.8 million reclassification from “Salaries, wages and employee benefits” in operating expenses to “Non-union pension and postretirement benefits” in nonoperating expenses for the three and nine months ended September 30, 2017 , respectively. In addition, due to the adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , cash paid to a taxing authority when shares are withheld to satisfy the employer’s statutory income tax withholding obligation are now required to be classified as a financing activity. This resulted in a $2.4 million reclassification in the nine months ended September 30, 2017 from “Change in other operating liabilities” in cash flows from operating activities to “Payments for tax withheld on equity-based compensation” in cash flows from financing activities in the statement of consolidated cash flows. Reclassifications Out of Accumulated Other Comprehensive Loss For the three and nine months ended September 30, 2018 , we reclassified the amortization of our prior net pension losses and prior service credit, net of tax, totaling $3.4 million and $10.8 million , respectively, from accumulated other comprehensive loss to net income. For the three and nine months ended September 30, 2017 , we reclassified the amortization of our prior net pension loss, net of tax, totaling $(0.9) million and $6.9 million , respectively, from accumulated other comprehensive loss to net income (loss). This reclassification is a component of net periodic pension cost and is discussed in the “Employee Benefits” footnote to the consolidated financial statements. Revenue Recognition and Revenue-Related Reserves The Company’s revenues are derived from the transportation services we provide through the delivery of goods over the duration of a shipment. Upon receipt of the bill of lading, the contract existence criteria is met as evidenced by a legally enforceable agreement between two parties where collectability is probable, thus creating the distinct performance obligation. The Company has elected to expense initial direct costs as incurred because the average shipment cycle is less than one week. The YRC Freight and Regional Transportation segments recognize revenue and substantially all the purchased transportation expense on a gross basis because we direct the use of the transportation service provided and remain responsible for the complete and proper shipment. Inherent within our revenue recognition practices are estimates for revenue associated with shipments in transit and future adjustments to revenue and accounts receivable for billing adjustments and collectability. For shipments in transit, we record revenue based on the percentage of service completed as of the period end and recognize delivery costs as incurred. The percentage of service completed for each shipment is based on how far along in the shipment cycle each shipment is in relation to standard transit days. Standard transit days are defined as our published service days between origin zip code and destination zip code. The total revenue earned is accumulated for all shipments in transit at a particular period end and recorded as operating revenue. Given the nature of our transportation services, future adjustments may arise which creates variability when establishing the transaction price used to recognize revenue. We have a high volume of performance obligations with similar characteristics, therefore we primarily use historical trends to arrive at estimated reserves. For rerate reserves, which are common for LTL carriers, we assign pricing to bills of lading at the time of shipment based primarily on the weight, general classification of the product, the shipping destination and individual customer discounts. This process is referred to as rating. At various points throughout our process, incorrect ratings could be identified based on many factors, including weight and commodity verifications. Although the majority of rerating occurs in the same month as the original rating, a portion occurs during the following periods. For the reserve for uncollectible accounts, we primarily use historical write-off experience but may also consider customer-specific factors, overall collection trends and economic conditions as part of our ongoing monitoring of credit. We considered the disclosure requirements for revenue disaggregation guidance in ASC Topic 606 and noted that our segments disaggregate our revenues based on geographic and time-based factors as our Regional Transportation segment carriers operate in a smaller geographic footprint and have a shorter length of haul as compared to our YRC Freight segment. No other criteria listed in the guidance or through our review process was considered to be meaningful for financial statement users. As such, we conclude that no further disaggregation of revenues is necessary. Refer to the “Business Segments” footnote to the consolidated financial statements for more details. Newly-Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers . The new standard became effective for the Company for its annual reporting period beginning January 1, 2018 using a modified retrospective approach. There was no cumulative effect adjustment recorded. The Company completed the implementation and included updates to our disclosures herein. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows , to clarify the guidance on how companies present restricted cash and restricted cash equivalents in the statement of cash flows. As a result, the Company no longer presents transfers between cash and cash equivalents and restricted cash in the statement of cash flows. The new standard became effective for the Company for its annual reporting period beginning January 1, 2018, and was adopted using a retrospective transition approach. The statement of consolidated cash flows has been updated to reflect the presentation of beginning and ending cash to include “Cash and cash equivalents” as well as “Restricted amounts held in escrow” and removed changes in restricted escrows as a component of investing activities. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires companies to present the service cost component of net benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. All other components of net benefit cost are presented outside of any subtotal for operating income, if one is presented. The new standard was effective and implemented for the Company for its annual reporting period beginning January 1, 2018, with retrospective application. Impact of Recently-Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases , which requires lessees to recognize a right-to-use asset and a lease obligation for all leases. Additional qualitative and quantitative disclosures, including significant judgments made by management, will be required. The new standard will become effective for the Company for its annual reporting period beginning January 1, 2019, including interim periods within that reporting period. The Company will adopt the standard using a modified retrospective approach with the effective date of the standard as the date of initial application. Upon adoption, the Company plans to elect the package of three practical expedients which allows entities to not reassess initial direct costs, lease classification for existing or expired leases, and lease definition for existing or expired contracts as of the effective date of January 1, 2019. Additionally, the Company does not plan to elect the hindsight method practical expedient which would allow us to reassess lease terms and impairment. For leases with a term of twelve months or less, the Company plans to make an accounting policy election in which the right of use lease asset and lease liability will not be recognized on the consolidated balance sheet. The Company does not plan to separate lease and non-lease components for its revenue equipment and real property leases. Using a cross-functional team, the Company has identified software to measure and record right-of-use asset and liability balances and has entered a majority of the existing leases into the software. The Company will continue to evaluate contractual lease obligations and refine our understanding of the accounting impacts and the necessary updates to our internal controls over financial reporting from the adoption of the new standard. We expect the adoption of this standard will have a material impact on the consolidated financial statements through the recognition of significant right-of-use assets and liabilities. The income statement impact continues to be evaluated. In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans . The guidance modifies disclosure requirements for defined benefit plans. This guidance is effective for fiscal years ending after December 15, 2020, and early adoption is permitted. The Company is currently assessing the potential impact of ASU 2018-14 on its consolidated financial statement disclosures. |
Debt and Financing
Debt and Financing | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Financing | Debt and Financing Our outstanding debt as of September 30, 2018 consisted of the following: As of September 30, 2018 (in millions) Par Value Discount Debt Issuance Costs Book Value Average Effective Interest Rate Term Loan $ 582.0 $ (8.5 ) $ (6.9 ) $ 566.6 (a) 11.1 % ABL Facility — — — — N/A Secured Second A&R CDA 26.9 — (0.1 ) 26.8 7.9 % Unsecured Second A&R CDA 48.2 — (0.2 ) 48.0 7.9 % Lease financing obligations 247.3 — (0.6 ) 246.7 14.5 % Total debt $ 904.4 $ (8.5 ) $ (7.8 ) $ 888.1 Current maturities of Term Loan (18.0 ) — — (18.0 ) Current maturities of lease financing obligations (5.6 ) — — (5.6 ) Current maturities of Unsecured Second A&R CDA $ (1.5 ) $ — $ — $ (1.5 ) Long-term debt $ 879.3 $ (8.5 ) $ (7.8 ) $ 863.0 (a) Variable interest rate of 1, 3 or 6-month LIBOR, with a floor of 1.0% , plus a fixed margin of 8.50% . ABL Facility Availability Our principal sources of liquidity are cash and cash equivalents, available borrowings under our asset-based loan facility (the “ABL Facility”) and any prospective net cash flow from operations. As of September 30, 2018 , our availability under our ABL Facility was $73.9 million , which is derived by reducing the amount that may be advanced against eligible receivables plus eligible borrowing base cash by certain reserves imposed by the ABL Agent and our $345.0 million of outstanding letters of credit. Our Managed Accessibility was $32.0 million , which is the measure of availability management uses based on the ABL requirement to maintain availability in an amount at least equal to or above 10% of the collateral line cap. Our cash and cash equivalents and Managed Accessibility were $225.2 million as of September 30, 2018 . Credit Facility Covenants The credit agreement (the “Term Loan Agreement”) governing our term loan facility (the “Term Loan”) has certain financial covenants, that, among other things, restrict certain capital expenditures and require us to comply with a maximum total leverage ratio covenant (defined as Consolidated Total Debt divided by Consolidated Adjusted EBITDA as defined below). Our total maximum leverage ratio covenants are as follows: Four Consecutive Fiscal Quarters Ending Maximum Total Four Consecutive Fiscal Quarters Ending Maximum Total September 30, 2018 3.50 to 1.00 March 31, 2020 3.00 to 1.00 December 31, 2018 3.50 to 1.00 June 30, 2020 3.00 to 1.00 March 31, 2019 3.25 to 1.00 September 30, 2020 2.75 to 1.00 June 30, 2019 3.25 to 1.00 December 31, 2020 2.75 to 1.00 September 30, 2019 3.25 to 1.00 March 31, 2021 2.75 to 1.00 December 31, 2019 3.00 to 1.00 June 30, 2021 and thereafter 2.50 to 1.00 Consolidated Adjusted EBITDA, defined in our Term Loan Agreement as “Consolidated EBITDA,” is a measure that reflects our earnings before interest, taxes, depreciation, and amortization expense, and is further adjusted for, among other things, letter of credit fees, equity-based compensation expense, net gains or losses on certain property disposals, restructuring charges, transaction costs related to issuances of debt, non-recurring consulting fees, expenses associated with certain lump sum payments to our union employees and the gains or losses from permitted dispositions and discontinued operations. Consolidated Total Debt, as defined in our Term Loan Agreement, is the aggregate principal amount of indebtedness outstanding. Our total leverage ratio for the four consecutive fiscal quarters ending September 30, 2018 was 3.13 to 1.00. Impacts to our consolidated financial statements due to the implementation of ASC 842, Leases , on January 1, 2019 will not impact our compliance with the financial covenants included in our Term Loan Agreement as changes in generally accepted accounting principles subsequent to the date of the agreement are not required to be implemented for purposes of covenant calculations. We believe that our results of operations will be sufficient to allow us to comply with the covenants in the Term Loan Agreement, fund our operations, increase working capital as necessary to support our planned revenue growth and fund capital expenditures for at least the next twelve months. Our ability to satisfy our liquidity needs and meet future stepped-up covenants beyond the next twelve months is dependent upon our ability to achieve operating results that reflect improvement over our 2017 results. Means for improving our profitability may include streamlining our support structure and networks, as well as ongoing successful implementation and realization of pricing, productivity and efficiency initiatives, in addition to increased volume and shipments, and increasing capital expenditures, some of which are outside of our control. Fair Value Measurement The book value and estimated fair values of our long-term debt, including current maturities and other financial instruments, are summarized as follows: September 30, 2018 December 31, 2017 (in millions) Book Value Fair value Book Value Fair value Term Loan $ 566.6 $ 595.4 $ 576.8 $ 596.9 Lease financing obligations 246.7 249.4 254.6 257.7 Second A&R CDA 74.8 76.8 74.7 75.3 Total debt $ 888.1 $ 921.6 $ 906.1 $ 929.9 The fair values of the Term Loan and the Second Amended and Restated Contribution Deferral Agreement (the “Second A&R CDA”) were estimated based on observable prices (level two inputs for fair value measurements). The fair value of the lease financing obligations is estimated using a publicly-traded secured loan with similar characteristics (level three input for fair value measurement). |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits Qualified and Nonqualified Defined Benefit Pension Plans The following table presents the components of our Company-sponsored pension plan costs for the three and nine months ended September 30 : Three Months Nine Months (in millions) 2018 2017 2018 2017 Service cost $ 0.1 $ 1.3 $ 0.3 $ 3.9 Interest cost 11.1 12.8 32.9 38.4 Expected return on plan assets (15.0 ) (14.8 ) (45.2 ) (44.4 ) Amortization of prior service credit (0.1 ) — (0.3 ) — Amortization of prior net pension loss 3.5 3.9 10.9 11.7 Settlement loss 7.2 — 7.2 — Total net periodic pension cost $ 6.8 $ 3.2 $ 5.8 $ 9.6 For the three and nine months ended September 30, 2018 , net periodic pension cost included a non-union pension settlement charge at YRC Freight of $7.2 million . The pension settlement charge was triggered due to the amount of lump sum benefit payments distributed from plan assets in 2018. The lump sum benefit payments reduce pension obligations and are funded from existing pension plan assets and therefore do not impact the Company’s cash balance. We expect to contribute $15.4 million to our Company-sponsored pension plans in 2018 , of which we have contributed $13.4 million through September 30, 2018 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate for the three and nine months ended September 30, 2018 was 61.8% and 44.9% , respectively, compared to 23.1% and (13.8)% for the three and nine months ended September 30, 2017 , respectively. The significant items impacting the 2018 rates include a provision for net state and foreign taxes, foreign withholding taxes related to dividends from a foreign subsidiary, certain permanent items, and a change in the valuation allowance established for the net deferred tax asset balance projected for December 31, 2018 . The significant items impacting the 2017 rates include a benefit recognized due to the application of the exception to the rules regarding intra-period tax allocation, a net state and foreign tax provision, foreign withholding taxes related to a dividend from a foreign subsidiary, certain permanent items, and a change in the valuation allowance established for the net deferred tax asset balance that had been projected for December 31 , 2017 . We recognize valuation allowances on deferred tax assets if, based on the weight of the evidence, we determine it is more likely than not such assets will not be realized. Changes in valuation allowances are included in our tax provision in the period of change. In determining whether a valuation allowance is warranted, we evaluate factors such as prior years’ earnings history, expected future earnings, loss carry-back and carry-forward periods, reversals of existing deferred tax liabilities and tax planning strategies that potentially enhance the likelihood of the realization of a deferred tax asset. At September 30, 2018 and December 31, 2017 , substantially all of our net deferred tax assets were subject to a valuation allowance. As indicated in the Company’s 2017 Form 10-K, certain tax accounting items impacted by the Tax Act were considered provisional pursuant to Staff Accounting Bulletin No. 118 (“SAB 118”) due to both incomplete facts and limited availability of official guidance. The accounting for the federal income tax effects of the 2017 inclusion of accumulated deferred net foreign earnings and profits was finalized during the quarter ending September 30, 2018, with the filing of the consolidated federal income tax return. The finalization of the inclusion amount had no impact on the tax provision for either the three months or nine months ended September 30, 2018 as it merely increased the 2017 net operating loss that was carried forward and fully offset by a valuation allowance. Certain other items considered provisional in the 2017 Form 10-K, including the various states’ treatment of that inclusion, will be finalized as of the quarter ending December 31, 2018. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share We calculate basic earnings per share by dividing our net earnings by our weighted-average shares outstanding at the end of the period. The calculation for diluted earnings per share adjusts the weighted average shares outstanding for our dilutive unvested shares and stock units using the treasury stock method. Our calculations for basic and dilutive earnings per share for the three and nine months ended September 30, 2018 and 2017 are as follows: Three Months Nine Months (dollars in millions, except per share data; shares and stock units in thousands) 2018 2017 2018 2017 Basic and dilutive net income (loss) available to common shareholders $ 2.9 $ 3.0 $ 2.7 $ (3.3 ) Basic weighted average shares outstanding 33,051 32,723 32,827 32,550 Effect of dilutive securities: Unvested shares and stock units 944 869 928 — Dilutive weighted average shares outstanding 33,995 33,592 33,755 32,550 Basic earnings (loss) per share (a) $ 0.09 $ 0.09 $ 0.08 $ (0.10 ) Diluted earnings (loss) per share (a) $ 0.09 $ 0.09 $ 0.08 $ (0.10 ) (a) Earnings (loss) per share is based on unrounded figures and not the rounded figures presented. At September 30, 2018 and 2017 , our anti-dilutive unvested shares, options, and stock units were approximately 54,000 and 80,000 , respectively. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments We report financial and descriptive information about our reporting segments on a basis consistent with that used internally for evaluating segment performance and allocating resources to segments. We evaluate segment performance primarily on external revenue, operating income (loss), and operating ratio. We charge management fees and other corporate service fees to our reporting segments based on the benefits received or an overhead allocation basis. Shared support functions include information technology, legal, financial services, revenue management, and other company-wide services. Corporate represents residual operating expenses of the holding company that are not attributable to any segment and remain unallocated. It also represents certain items that are permitted to be included in Adjusted EBITDA. Corporate identifiable assets primarily consist of cash and cash equivalents, restricted amounts held in escrow, and information technology assets, which are offset by eliminations with the two business segments. We considered the disclosure requirements for revenue disaggregation guidance in ASC Topic 606 and noted that our segments disaggregate our revenues based on geographic and time-based factors as our Regional Transportation segment carriers operate in a smaller geographic footprint and have a shorter length of haul as compared to our YRC Freight segment. The following table summarizes our operations by business segment: (in millions) YRC Freight Regional Transportation Corporate/ Eliminations Consolidated As of September 30, 2018 Identifiable assets $ 1,000.9 $ 646.2 $ 10.5 $ 1,657.6 As of December 31, 2017 Identifiable assets $ 1,042.1 $ 607.4 $ (64.0 ) $ 1,585.5 Three Months Ended September 30, 2018 External revenue $ 822.1 $ 481.5 $ — $ 1,303.6 Operating income (loss) $ 24.7 $ 18.4 $ (1.9 ) $ 41.2 Nine Months Ended September 30, 2018 External revenue $ 2,401.0 $ 1,443.8 $ (0.2 ) $ 3,844.6 Operating income (loss) $ 44.6 $ 52.8 $ (9.6 ) $ 87.8 Three Months Ended September 30, 2017 External revenue $ 787.8 $ 463.5 $ (0.1 ) $ 1,251.2 Operating income (loss) (a) $ 23.2 $ 21.5 $ (1.3 ) $ 43.4 Nine Months Ended September 30, 2017 External revenue $ 2,306.2 $ 1,376.5 $ (0.3 ) $ 3,682.4 Operating income (loss) (a) $ 46.6 $ 59.0 $ (8.7 ) $ 96.9 (a) Due to the adoption of ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , “Operating income (loss)” for prior year has been updated to reflect the reclassification of pension expense. |
Commitments, Contingencies and
Commitments, Contingencies and Uncertainties | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Uncertainties | Commitments, Contingencies and Uncertainties Leases As of September 30, 2018 , our operating lease payment obligations through 2030 totaled $409.9 million and are expected to increase as we lease additional revenue equipment. Additionally, for the nine months ended September 30, 2018 , we entered into new operating leases for revenue equipment totaling $136.4 million in future lease payments, payable over an average lease term of five years. Other Legal Matters We are involved in litigation or proceedings that arise in ordinary business activities. When possible, we insure against these risks to the extent we deem prudent, but no assurance can be given that the nature or amount of such insurance will be sufficient to fully indemnify us against liabilities arising out of pending and future legal proceedings. Many of these insurance policies contain self-insured retentions in amounts we deem prudent. Based on our current assessment of information available as of the date of these consolidated financial statements, we believe that our consolidated financial statements include adequate provisions for estimated costs and losses that may be incurred within the litigation and proceedings to which we are a party. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 29, 2018, we closed on a real estate sale of a portion of one of our YRC Freight facilities. We are continuing operations at this facility on the remaining dock. The sale generated approximately $31 million in net cash proceeds, and our fourth quarter operating income and Adjusted EBITDA results will reflect an approximate $29 million property gain. Net proceeds from the sale are required to be offered to our term loan lenders, and acceptance thereof would reduce future required payments for several quarters. |
Principles of Consolidation (Po
Principles of Consolidation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying Consolidated Financial Statements include the accounts of YRC Worldwide and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. We report on a calendar year basis. The quarters of the Regional Transportation companies (with the exception of New Penn) consist of thirteen weeks that end on a Saturday either before or after the end of March, June and September, whereas all other operating segment quarters end on the natural calendar quarter end. For ease of reference, the calendar quarter end dates are used herein. We make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and notes. Actual results could differ from those estimates. We have prepared the Consolidated Financial Statements, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In our opinion, we have made all normal recurring adjustments necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods included in these financial statements. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted from these statements pursuant to SEC rules and regulations. Accordingly, the accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 . |
Reclassification | Certain reclassifications have been made to prior year’s consolidated financial statements to conform to current year presentation. Total net periodic pension cost associated with the Company’s non-union defined benefit plans that was previously reported in operating expenses in the income statement is now reported in nonoperating expenses due to the adoption of Accounting Standards Update (“ASU”) 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , discussed further below. This resulted in a $3.3 million and $9.8 million reclassification from “Salaries, wages and employee benefits” in operating expenses to “Non-union pension and postretirement benefits” in nonoperating expenses for the three and nine months ended September 30, 2017 , respectively. In addition, due to the adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , cash paid to a taxing authority when shares are withheld to satisfy the employer’s statutory income tax withholding obligation are now required to be classified as a financing activity. This resulted in a $2.4 million reclassification in the nine months ended September 30, 2017 from “Change in other operating liabilities” in cash flows from operating activities to “Payments for tax withheld on equity-based compensation” in cash flows from financing activities in the statement of consolidated cash flows. |
Revenue Recognition and Revenue-Related Reserves | Revenue Recognition and Revenue-Related Reserves The Company’s revenues are derived from the transportation services we provide through the delivery of goods over the duration of a shipment. Upon receipt of the bill of lading, the contract existence criteria is met as evidenced by a legally enforceable agreement between two parties where collectability is probable, thus creating the distinct performance obligation. The Company has elected to expense initial direct costs as incurred because the average shipment cycle is less than one week. The YRC Freight and Regional Transportation segments recognize revenue and substantially all the purchased transportation expense on a gross basis because we direct the use of the transportation service provided and remain responsible for the complete and proper shipment. Inherent within our revenue recognition practices are estimates for revenue associated with shipments in transit and future adjustments to revenue and accounts receivable for billing adjustments and collectability. For shipments in transit, we record revenue based on the percentage of service completed as of the period end and recognize delivery costs as incurred. The percentage of service completed for each shipment is based on how far along in the shipment cycle each shipment is in relation to standard transit days. Standard transit days are defined as our published service days between origin zip code and destination zip code. The total revenue earned is accumulated for all shipments in transit at a particular period end and recorded as operating revenue. Given the nature of our transportation services, future adjustments may arise which creates variability when establishing the transaction price used to recognize revenue. We have a high volume of performance obligations with similar characteristics, therefore we primarily use historical trends to arrive at estimated reserves. For rerate reserves, which are common for LTL carriers, we assign pricing to bills of lading at the time of shipment based primarily on the weight, general classification of the product, the shipping destination and individual customer discounts. This process is referred to as rating. At various points throughout our process, incorrect ratings could be identified based on many factors, including weight and commodity verifications. Although the majority of rerating occurs in the same month as the original rating, a portion occurs during the following periods. For the reserve for uncollectible accounts, we primarily use historical write-off experience but may also consider customer-specific factors, overall collection trends and economic conditions as part of our ongoing monitoring of credit. We considered the disclosure requirements for revenue disaggregation guidance in ASC Topic 606 and noted that our segments disaggregate our revenues based on geographic and time-based factors as our Regional Transportation segment carriers operate in a smaller geographic footprint and have a shorter length of haul as compared to our YRC Freight segment. No other criteria listed in the guidance or through our review process was considered to be meaningful for financial statement users. As such, we conclude that no further disaggregation of revenues is necessary. Refer to the “Business Segments” footnote to the consolidated financial statements for more details. |
Newly Adopted Accounting Standards and Impact of Recently Issued Accounting Standards | Newly-Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers . The new standard became effective for the Company for its annual reporting period beginning January 1, 2018 using a modified retrospective approach. There was no cumulative effect adjustment recorded. The Company completed the implementation and included updates to our disclosures herein. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows , to clarify the guidance on how companies present restricted cash and restricted cash equivalents in the statement of cash flows. As a result, the Company no longer presents transfers between cash and cash equivalents and restricted cash in the statement of cash flows. The new standard became effective for the Company for its annual reporting period beginning January 1, 2018, and was adopted using a retrospective transition approach. The statement of consolidated cash flows has been updated to reflect the presentation of beginning and ending cash to include “Cash and cash equivalents” as well as “Restricted amounts held in escrow” and removed changes in restricted escrows as a component of investing activities. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires companies to present the service cost component of net benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. All other components of net benefit cost are presented outside of any subtotal for operating income, if one is presented. The new standard was effective and implemented for the Company for its annual reporting period beginning January 1, 2018, with retrospective application. Impact of Recently-Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases , which requires lessees to recognize a right-to-use asset and a lease obligation for all leases. Additional qualitative and quantitative disclosures, including significant judgments made by management, will be required. The new standard will become effective for the Company for its annual reporting period beginning January 1, 2019, including interim periods within that reporting period. The Company will adopt the standard using a modified retrospective approach with the effective date of the standard as the date of initial application. Upon adoption, the Company plans to elect the package of three practical expedients which allows entities to not reassess initial direct costs, lease classification for existing or expired leases, and lease definition for existing or expired contracts as of the effective date of January 1, 2019. Additionally, the Company does not plan to elect the hindsight method practical expedient which would allow us to reassess lease terms and impairment. For leases with a term of twelve months or less, the Company plans to make an accounting policy election in which the right of use lease asset and lease liability will not be recognized on the consolidated balance sheet. The Company does not plan to separate lease and non-lease components for its revenue equipment and real property leases. Using a cross-functional team, the Company has identified software to measure and record right-of-use asset and liability balances and has entered a majority of the existing leases into the software. The Company will continue to evaluate contractual lease obligations and refine our understanding of the accounting impacts and the necessary updates to our internal controls over financial reporting from the adoption of the new standard. We expect the adoption of this standard will have a material impact on the consolidated financial statements through the recognition of significant right-of-use assets and liabilities. The income statement impact continues to be evaluated. In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans . The guidance modifies disclosure requirements for defined benefit plans. This guidance is effective for fiscal years ending after December 15, 2020, and early adoption is permitted. The Company is currently assessing the potential impact of ASU 2018-14 on its consolidated financial statement disclosures. |
Debt and Financing (Tables)
Debt and Financing (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Our outstanding debt as of September 30, 2018 consisted of the following: As of September 30, 2018 (in millions) Par Value Discount Debt Issuance Costs Book Value Average Effective Interest Rate Term Loan $ 582.0 $ (8.5 ) $ (6.9 ) $ 566.6 (a) 11.1 % ABL Facility — — — — N/A Secured Second A&R CDA 26.9 — (0.1 ) 26.8 7.9 % Unsecured Second A&R CDA 48.2 — (0.2 ) 48.0 7.9 % Lease financing obligations 247.3 — (0.6 ) 246.7 14.5 % Total debt $ 904.4 $ (8.5 ) $ (7.8 ) $ 888.1 Current maturities of Term Loan (18.0 ) — — (18.0 ) Current maturities of lease financing obligations (5.6 ) — — (5.6 ) Current maturities of Unsecured Second A&R CDA $ (1.5 ) $ — $ — $ (1.5 ) Long-term debt $ 879.3 $ (8.5 ) $ (7.8 ) $ 863.0 (a) Variable interest rate of 1, 3 or 6-month LIBOR, with a floor of 1.0% , plus a fixed margin of 8.50% . |
Schedule of Maximum Total Leverage Ratio for Remaining Test Periods [Table Text Block] | Our total maximum leverage ratio covenants are as follows: Four Consecutive Fiscal Quarters Ending Maximum Total Four Consecutive Fiscal Quarters Ending Maximum Total September 30, 2018 3.50 to 1.00 March 31, 2020 3.00 to 1.00 December 31, 2018 3.50 to 1.00 June 30, 2020 3.00 to 1.00 March 31, 2019 3.25 to 1.00 September 30, 2020 2.75 to 1.00 June 30, 2019 3.25 to 1.00 December 31, 2020 2.75 to 1.00 September 30, 2019 3.25 to 1.00 March 31, 2021 2.75 to 1.00 December 31, 2019 3.00 to 1.00 June 30, 2021 and thereafter 2.50 to 1.00 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | The book value and estimated fair values of our long-term debt, including current maturities and other financial instruments, are summarized as follows: September 30, 2018 December 31, 2017 (in millions) Book Value Fair value Book Value Fair value Term Loan $ 566.6 $ 595.4 $ 576.8 $ 596.9 Lease financing obligations 246.7 249.4 254.6 257.7 Second A&R CDA 74.8 76.8 74.7 75.3 Total debt $ 888.1 $ 921.6 $ 906.1 $ 929.9 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Costs of Retirement Plans | The following table presents the components of our Company-sponsored pension plan costs for the three and nine months ended September 30 : Three Months Nine Months (in millions) 2018 2017 2018 2017 Service cost $ 0.1 $ 1.3 $ 0.3 $ 3.9 Interest cost 11.1 12.8 32.9 38.4 Expected return on plan assets (15.0 ) (14.8 ) (45.2 ) (44.4 ) Amortization of prior service credit (0.1 ) — (0.3 ) — Amortization of prior net pension loss 3.5 3.9 10.9 11.7 Settlement loss 7.2 — 7.2 — Total net periodic pension cost $ 6.8 $ 3.2 $ 5.8 $ 9.6 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Our calculations for basic and dilutive earnings per share for the three and nine months ended September 30, 2018 and 2017 are as follows: Three Months Nine Months (dollars in millions, except per share data; shares and stock units in thousands) 2018 2017 2018 2017 Basic and dilutive net income (loss) available to common shareholders $ 2.9 $ 3.0 $ 2.7 $ (3.3 ) Basic weighted average shares outstanding 33,051 32,723 32,827 32,550 Effect of dilutive securities: Unvested shares and stock units 944 869 928 — Dilutive weighted average shares outstanding 33,995 33,592 33,755 32,550 Basic earnings (loss) per share (a) $ 0.09 $ 0.09 $ 0.08 $ (0.10 ) Diluted earnings (loss) per share (a) $ 0.09 $ 0.09 $ 0.08 $ (0.10 ) (a) Earnings (loss) per share is based on unrounded figures and not the rounded figures presented. |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table summarizes our operations by business segment: (in millions) YRC Freight Regional Transportation Corporate/ Eliminations Consolidated As of September 30, 2018 Identifiable assets $ 1,000.9 $ 646.2 $ 10.5 $ 1,657.6 As of December 31, 2017 Identifiable assets $ 1,042.1 $ 607.4 $ (64.0 ) $ 1,585.5 Three Months Ended September 30, 2018 External revenue $ 822.1 $ 481.5 $ — $ 1,303.6 Operating income (loss) $ 24.7 $ 18.4 $ (1.9 ) $ 41.2 Nine Months Ended September 30, 2018 External revenue $ 2,401.0 $ 1,443.8 $ (0.2 ) $ 3,844.6 Operating income (loss) $ 44.6 $ 52.8 $ (9.6 ) $ 87.8 Three Months Ended September 30, 2017 External revenue $ 787.8 $ 463.5 $ (0.1 ) $ 1,251.2 Operating income (loss) (a) $ 23.2 $ 21.5 $ (1.3 ) $ 43.4 Nine Months Ended September 30, 2017 External revenue $ 2,306.2 $ 1,376.5 $ (0.3 ) $ 3,682.4 Operating income (loss) (a) $ 46.6 $ 59.0 $ (8.7 ) $ 96.9 (a) Due to the adoption of ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , “Operating income (loss)” for prior year has been updated to reflect the reclassification of pension expense. |
Description of Business (Detail
Description of Business (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Workforce Subject to Collective Bargaining Arrangements [Member] | Labor Force Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Percentage of workforce subject to collective bargaining agreements | 78.00% |
Principles of Consolidation (Re
Principles of Consolidation (Reclassification Out of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassifications out of Accumulated Comprehensive loss [Line Items] | ||||
Non-union pension and postretirement benefits | $ 6.9 | $ 3.3 | $ 6 | $ 9.8 |
Change in other operating liabilities | (32.3) | 14.2 | ||
Payments for tax withheld on equity-based compensation | 2 | 2.4 | ||
Accounting Standards Update 2017-07 [Member] | ||||
Reclassifications out of Accumulated Comprehensive loss [Line Items] | ||||
Non-union pension and postretirement benefits | 3.3 | 9.8 | ||
Salaries, wages and employee benefits | 3.3 | 9.8 | ||
Accounting Standards Update 2016-09 [Member] | ||||
Reclassifications out of Accumulated Comprehensive loss [Line Items] | ||||
Change in other operating liabilities | (2.4) | |||
Payments for tax withheld on equity-based compensation | 2.4 | |||
AOCI Attributable to Parent [Member] | ||||
Reclassifications out of Accumulated Comprehensive loss [Line Items] | ||||
Reclassification adjustment from AOCI, after tax | $ 3.4 | $ (0.9) | $ 10.8 | $ 6.9 |
Debt and Financing (Details)
Debt and Financing (Details) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018USD ($) | Mar. 31, 2018 | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||
Par Value | $ 904.4 | ||
Discount | (8.5) | ||
Debt Issuance Costs | (7.8) | ||
Book Value | 888.1 | ||
Book Value, Current Maturities | (25.1) | $ (30.6) | |
Par Value, Excluding Current Maturities | 879.3 | ||
Premium (Discount) | (8.5) | ||
Book Value, Excluding Current Maturities | 863 | 875.5 | |
Book Value | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 888.1 | 906.1 | |
Fair value | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 921.6 | 929.9 | |
Term Loan | |||
Debt Instrument [Line Items] | |||
Par Value | 582 | ||
Discount | (8.5) | ||
Debt Issuance Costs | (6.9) | ||
Book Value | 566.6 | ||
Par Value, Current Maturities | (18) | ||
Discount, Current Maturities | 0 | ||
Deferred Issuance Costs, Current | 0 | ||
Book Value, Current Maturities | $ (18) | ||
Average Effective Interest Rate | 11.10% | ||
Term Loan | Book Value | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | $ 566.6 | 576.8 | |
Term Loan | Fair value | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 595.4 | 596.9 | |
ABL Facility | 2014 ABL Facility Credit Agreement | |||
Debt Instrument [Line Items] | |||
Par Value | 0 | ||
Discount | 0 | ||
Debt Issuance Costs | 0 | ||
Book Value | 0 | ||
Line of credit facility, total cash and availability | 73.9 | ||
Secured Second A&R CDA | |||
Debt Instrument [Line Items] | |||
Par Value | 26.9 | ||
Discount | 0 | ||
Debt Issuance Costs | (0.1) | ||
Book Value | $ 26.8 | ||
Average Effective Interest Rate | 7.90% | ||
Unsecured Second A&R CDA | |||
Debt Instrument [Line Items] | |||
Par Value | $ 48.2 | ||
Discount | 0 | ||
Debt Issuance Costs | (0.2) | ||
Book Value | 48 | ||
Par Value, Current Maturities | (1.5) | ||
Discount, Current Maturities | 0 | ||
Deferred Issuance Costs, Current | 0 | ||
Book Value, Current Maturities | $ (1.5) | ||
Average Effective Interest Rate | 7.90% | ||
Lease financing obligations | |||
Debt Instrument [Line Items] | |||
Par Value | $ 247.3 | ||
Discount | 0 | ||
Debt Issuance Costs | (0.6) | ||
Book Value | 246.7 | ||
Par Value, Current Maturities | (5.6) | ||
Discount, Current Maturities | 0 | ||
Deferred Issuance Costs, Current | 0 | ||
Book Value, Current Maturities | $ (5.6) | ||
Average Effective Interest Rate | 14.50% | ||
Lease financing obligations | Book Value | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | $ 246.7 | 254.6 | |
Lease financing obligations | Fair value | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 249.4 | 257.7 | |
Letter of Credit [Member] | 2014 ABL Facility Credit Agreement | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding, amount | 345 | ||
Other Debt Obligations | Book Value | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 74.8 | 74.7 | |
Other Debt Obligations | Fair value | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 76.8 | $ 75.3 | |
2014 ABL Facility Credit Agreement | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity (Managed Accessibility) | 32 | ||
2014 ABL Facility Credit Agreement | ABL Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, total cash and availability | $ 225.2 | ||
Term Loan Agreement | |||
Debt Instrument [Line Items] | |||
Maximum Total Leverage Ratio, September 30, 2018 | 3.5 | ||
Maximum Total Leverage Ratio, December 31, 2018 | 3.50 | ||
Maximum Total Leverage Ratio, March 31, 2019 | 3.25 | ||
Maximum Total Leverage Ratio, June 30, 2019 | 3.25 | ||
Maximum Total Leverage Ratio, September 30, 2019 | 3.25 | ||
Maximum Total Leverage Ratio, December 31, 2019 | 3 | ||
Maximum Total Leverage Ratio, March 31, 2020 | 3 | ||
Maximum Total Leverage Ratio, June 30, 2020 | 3 | ||
Maximum Total Leverage Ratio, September 30, 2020 | 2.75 | ||
Maximum Total Leverage Ratio, December 31, 2020 | 2.75 | ||
Maximum Total Leverage Ratio, March 31, 2021 | 2.75 | ||
Maximum Total Leverage Ratio, June 30, 2021 and thereafter | 2.50 | ||
Total leverage ratio | 3.13 | ||
London Interbank Offered Rate (LIBOR) | Term Loan | |||
Debt Instrument [Line Items] | |||
Floor interest rate | 1.00% | ||
Basis spread on variable rate | 8.50% |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Non-union pension settlement charge | $ 7.2 | $ 0 | ||
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0.1 | $ 1.3 | 0.3 | 3.9 |
Interest cost | 11.1 | 12.8 | 32.9 | 38.4 |
Expected return on plan assets | (15) | (14.8) | (45.2) | (44.4) |
Amortization of prior service credit | (0.1) | 0 | (0.3) | 0 |
Amortization of prior net pension loss | 3.5 | 3.9 | 10.9 | 11.7 |
Settlement loss | 7.2 | 0 | 7.2 | 0 |
Total periodic pension cost | 6.8 | $ 3.2 | 5.8 | $ 9.6 |
Expected future benefit payments, remainder of the year | 15.4 | 15.4 | ||
Contributions by employer | 13.4 | |||
Operating Segments | YRC Freight | Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Non-union pension settlement charge | $ 7.2 | $ 7.2 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 61.80% | 23.10% | 44.90% | (13.80%) |
Loss Per Share (Details)
Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Basic and dilutive net income (loss) available to common shareholders | $ 2.9 | $ 3 | $ 2.7 | $ (3.3) |
Basic weighted average shares outstanding (in shares) | 33,051 | 32,723 | 32,827 | 32,550 |
Dilutive weighted average shares outstanding (in shares) | 33,995 | 33,592 | 33,755 | 32,550 |
Income (loss) Per Share – Basic (in dollars per share) | $ 0.09 | $ 0.09 | $ 0.08 | $ (0.10) |
Income (loss) Per Share – Diluted (in dollars per share) | $ 0.09 | $ 0.09 | $ 0.08 | $ (0.10) |
Stock Compensation Plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Unvested shares and stock units (in shares) | 944 | 869 | 928 | 0 |
Antidillutive options and shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share | 54 | 80 |
Business Segments (Details)
Business Segments (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Identifiable assets | $ 1,657.6 | $ 1,657.6 | $ 1,585.5 | ||
External revenue | 1,303.6 | $ 1,251.2 | 3,844.6 | $ 3,682.4 | |
Operating income (loss) | 41.2 | 43.4 | 87.8 | 96.9 | |
Operating Segments | YRC Freight | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable assets | 1,000.9 | 1,000.9 | 1,042.1 | ||
External revenue | 822.1 | 787.8 | 2,401 | 2,306.2 | |
Operating income (loss) | 24.7 | 23.2 | 44.6 | 46.6 | |
Operating Segments | Regional Transportation | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable assets | 646.2 | 646.2 | 607.4 | ||
External revenue | 481.5 | 463.5 | 1,443.8 | 1,376.5 | |
Operating income (loss) | 18.4 | 21.5 | 52.8 | 59 | |
Corporate/ Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable assets | 10.5 | 10.5 | $ (64) | ||
External revenue | 0 | (0.1) | (0.2) | (0.3) | |
Operating income (loss) | $ (1.9) | $ (1.3) | $ (9.6) | $ (8.7) |
Commitments, Contingencies an_2
Commitments, Contingencies and Uncertainties (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Operating Leased Assets [Line Items] | |
Operating leases, future minimum payments due | $ 409.9 |
Revenue Equipment [Member] | |
Operating Leased Assets [Line Items] | |
Operating leases, future minimum payments due | $ 136.4 |
Operating lease term | 5 years |
Subsequent Events (Details)
Subsequent Events (Details) - One Freight Facility - USD ($) $ in Millions | Oct. 29, 2018 | Dec. 31, 2018 |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Proceeds from sale of real estate | $ 31 | |
Scenario, Forecast | ||
Subsequent Event [Line Items] | ||
Gain on sale of property | $ 29 |