Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 06, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | YRC Worldwide Inc. | ||
Entity Central Index Key | 0000716006 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 36,081,170 | ||
Entity Public Float | $ 134 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Trading Symbol | YRCW | ||
Entity File Number | 0-12255 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 48-0948788 | ||
Entity Address, Address Line One | 10990 Roe Avenue | ||
Entity Address, City or Town | Overland Park | ||
Entity Address, State or Province | KS | ||
Entity Address, Postal Zip Code | 66211 | ||
City Area Code | 913 | ||
Local Phone Number | 696-6100 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 109.2 | $ 227.6 |
Accounts receivable, less allowances of $11.4 and $11.1, respectively | 464.4 | 470.3 |
Prepaid expenses and other | 44.6 | 58.7 |
Total current assets | 618.2 | 756.6 |
Property and Equipment: | ||
Cost | 2,761.6 | 2,765.9 |
Less – accumulated depreciation | (1,991.3) | (1,969.8) |
Net property and equipment | 770.3 | 796.1 |
Deferred income taxes, net | 0.6 | |
Operating lease right-of-use assets | 386 | |
Other assets | 56.5 | 64.4 |
Total Assets | 1,831.6 | 1,617.1 |
Current Liabilities: | ||
Accounts payable | 163.7 | 178 |
Wages, vacations and employee benefits | 195.9 | 223.6 |
Current operating lease liabilities | 120.8 | |
Claims and insurance accruals | 120.4 | 112.8 |
Other accrued taxes | 25.8 | 24.7 |
Other current and accrued liabilities | 21.3 | 32.6 |
Current maturities of long-term debt | 4.1 | 20.7 |
Total current liabilities | 652 | 592.4 |
Other Liabilities: | ||
Long-term debt and financing, less current portion | 858.1 | 854.2 |
Deferred income taxes, net | 1.8 | |
Pension and postretirement | 236.5 | 202.9 |
Operating lease liabilities | 246.3 | |
Claims and other liabilities | 279.9 | 271.3 |
Commitments and contingencies | ||
Shareholders’ Deficit: | ||
Cumulative preferred stock, $1 par value per share - authorized 5,000,000 shares | ||
Common stock, $0.01 par value per share - authorized 95,000,000 shares, issued 33,715,000 and 33,090,000 shares | 0.3 | 0.3 |
Capital surplus | 2,332.9 | 2,327.6 |
Accumulated deficit | (2,312.4) | (2,208.4) |
Accumulated other comprehensive loss | (369.3) | (332.3) |
Treasury stock, at cost (410 shares) | (92.7) | (92.7) |
Total shareholders’ deficit | (441.2) | (305.5) |
Total Liabilities and Shareholders’ Deficit | $ 1,831.6 | $ 1,617.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 11.4 | $ 11.1 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 95,000,000 | 95,000,000 |
Common stock, shares issued | 33,715,000 | 33,090,000 |
Treasury stock, shares (in shares) | 410 | 410 |
Statements of Consolidated Oper
Statements of Consolidated Operations - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Operating Revenue | $ 4,871.2 | $ 5,092 | $ 4,891 |
Operating Expenses: | |||
Salaries, wages and employee benefits | 2,963.7 | 2,950 | 2,884.2 |
Fuel, operating expenses and supplies | 889 | 940.2 | 867.5 |
Purchased transportation | 614.2 | 683.2 | 627.5 |
Depreciation and amortization | 152.4 | 147.7 | 147.7 |
Other operating expenses | 241.2 | 248.8 | 245.7 |
Gains on property disposals, net | (13.7) | (20.8) | (0.6) |
Impairment charges | 8.2 | 0 | 0 |
Total operating expenses | 4,855 | 4,949.1 | 4,772 |
Operating Income | 16.2 | 142.9 | 119 |
Nonoperating Expenses: | |||
Interest expense | 111.2 | 105.8 | 102.8 |
Loss on extinguishment of debt | 11.2 | 0 | 0 |
Non-union pension and postretirement benefits | 3.1 | 9.4 | 20.6 |
Other, net | (1) | (3.6) | 13.7 |
Nonoperating expenses, net | 124.5 | 111.6 | 137.1 |
Income (loss) before income taxes | (108.3) | 31.3 | (18.1) |
Income tax expense (benefit) | (4.3) | 11.1 | (7.3) |
Net Income (Loss) | $ (104) | $ 20.2 | $ (10.8) |
Average Common Shares Outstanding - Basic | 33,252 | 32,983 | 32,685 |
Average Common Shares Outstanding - Diluted | 33,252 | 33,859 | 32,685 |
Earnings (Loss) Per Share - Basic | $ (3.13) | $ 0.61 | $ (0.33) |
Earnings (Loss) Per Share - Diluted | $ (3.13) | $ 0.60 | $ (0.33) |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ (104) | $ 20.2 | $ (10.8) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax [Abstract] | |||
Net actuarial gains (losses) and other adjustments | (51.7) | 1 | 36.1 |
Net prior service credit | 8.9 | ||
Settlement adjustment | 1.8 | 10.9 | 6.3 |
Amortization of prior net losses | 12.9 | 14.6 | 12.9 |
Amortization of prior net service credit | (0.4) | (0.4) | |
Changes in foreign currency translation adjustments | 0.4 | (2.6) | 5.2 |
Other comprehensive income (loss) | (37) | 23.5 | 69.4 |
Comprehensive income (loss) | $ (141) | $ 43.7 | $ 58.6 |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities: | |||
Net income (loss) | $ (104) | $ 20.2 | $ (10.8) |
Adjustments to reconcile net income (loss) to cash flows from operating activities: | |||
Depreciation and amortization | 152.4 | 147.7 | 147.7 |
Lease amortization and accretion expense | 168 | 0 | 0 |
Lease payments | (155.1) | 0 | 0 |
Equity-based compensation and employee benefits expense | 18.6 | 20.3 | 22 |
Non-union pension settlement charge | 1.8 | 10.9 | 7.6 |
Gains on property disposals, net | (13.7) | (20.8) | (0.6) |
Loss on extinguishment of debt | 11.2 | 0 | 0 |
Impairment charges | 8.2 | 0 | 0 |
Deferred income tax benefit, net | (3) | (1.1) | (13.2) |
Other noncash items, net | 6.4 | 4.9 | 13.2 |
Changes in assets and liabilities, net: | |||
Accounts receivable | 7.1 | 16.6 | (38.6) |
Accounts payable | (14.8) | 6.1 | 10.9 |
Other operating assets | (1.5) | 5.4 | 14.9 |
Other operating liabilities | (60.1) | 14.6 | (92.4) |
Net cash provided by operating activities | 21.5 | 224.8 | 60.7 |
Investing Activities: | |||
Acquisition of property and equipment | (143.2) | (145.4) | (103.3) |
Proceeds from disposal of property and equipment | 25.9 | 36.4 | 8.8 |
Net cash used in investing activities | (117.3) | (109) | (94.5) |
Financing Activities: | |||
Issuance of long-term debt, net of discounts | 570 | 0 | 0 |
Repayment of long-term debt | (579) | (31.9) | (79.3) |
Debt issuance costs | (12.7) | 0 | (14.5) |
Payments for tax withheld on equity-based compensation | (0.9) | (2) | (2.4) |
Net cash used in financing activities | (22.6) | (33.9) | (96.2) |
Net Increase (Decrease) In Cash and Cash Equivalents and Restricted Amounts Held in Escrow | (118.4) | 81.9 | (130) |
Cash and Cash Equivalents and Restricted Amounts Held in Escrow, Beginning of Year | 227.6 | 145.7 | 275.7 |
Cash and Cash Equivalents and Restricted Amounts Held in Escrow, End of Year | 109.2 | 227.6 | 145.7 |
Supplemental Cash Flow Information: | |||
Interest paid | (106.8) | (101.2) | (103.4) |
Letter of credit fees paid | (6.8) | (7) | (7) |
Income tax refund (payment) | $ (3.7) | $ (5.5) | $ 1.7 |
Statement of Consolidated Share
Statement of Consolidated Shareholders' Deficit - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Capital Surplus | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock, At Cost |
Beginning balance at Dec. 31, 2017 | $ (353.5) | $ 0 | $ 0.3 | $ 2,323.3 | $ (2,228.6) | $ (355.8) | $ (92.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity-based compensation | 0.2 | 0 | 0.2 | ||||
Net income (loss) | (14.6) | 0 | (14.6) | ||||
Amortization of prior net losses | 3.8 | 0 | 3.8 | ||||
Amortization of prior net service credit | (0.1) | 0 | (0.1) | ||||
Foreign currency translation adjustments | (1.7) | 0 | (1.7) | ||||
Ending balance at Mar. 31, 2018 | (365.9) | 0 | 0.3 | 2,323.5 | (2,243.2) | (353.8) | (92.7) |
Beginning balance at Dec. 31, 2017 | (353.5) | 0 | 0.3 | 2,323.3 | (2,228.6) | (355.8) | (92.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 20.2 | ||||||
Amortization of prior net losses | 14.6 | ||||||
Amortization of prior net service credit | (0.4) | ||||||
Settlement adjustment | 10.9 | ||||||
Net actuarial loss | 1 | ||||||
Foreign currency translation adjustments | (2.6) | ||||||
Ending balance at Dec. 31, 2018 | (305.5) | 0 | 0.3 | 2,327.6 | (2,208.4) | (332.3) | (92.7) |
Beginning balance at Mar. 31, 2018 | (365.9) | 0 | 0.3 | 2,323.5 | (2,243.2) | (353.8) | (92.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity-based compensation | 3.1 | 0 | 3.1 | ||||
Net income (loss) | 14.4 | 0 | 14.4 | ||||
Amortization of prior net losses | 3.8 | 0 | 3.8 | ||||
Amortization of prior net service credit | (0.1) | 0 | (0.1) | ||||
Foreign currency translation adjustments | 0.6 | 0 | 0.6 | ||||
Ending balance at Jun. 30, 2018 | (344.1) | 0 | 0.3 | 2,326.6 | (2,228.8) | (349.5) | (92.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity-based compensation | 0.2 | 0 | 0.2 | ||||
Net income (loss) | 2.9 | 0 | 2.9 | ||||
Amortization of prior net losses | 3.5 | 0 | 3.5 | ||||
Amortization of prior net service credit | (0.1) | 0 | (0.1) | ||||
Settlement adjustment | 7.2 | 0 | 7.2 | ||||
Net actuarial loss | 0.7 | 0 | 0.7 | ||||
Foreign currency translation adjustments | 0.9 | 0 | 0.9 | ||||
Ending balance at Sep. 30, 2018 | (328.8) | 0 | 0.3 | 2,326.8 | (2,225.9) | (337.3) | (92.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity-based compensation | 0.8 | 0 | 0.8 | ||||
Net income (loss) | 17.5 | 0 | 17.5 | ||||
Amortization of prior net losses | 3.5 | 0 | 3.5 | ||||
Amortization of prior net service credit | (0.1) | 0 | (0.1) | ||||
Settlement adjustment | 3.7 | 0 | 3.7 | ||||
Net actuarial loss | 0.3 | 0 | 0.3 | ||||
Foreign currency translation adjustments | (2.4) | 0 | (2.4) | ||||
Ending balance at Dec. 31, 2018 | (305.5) | 0 | 0.3 | 2,327.6 | (2,208.4) | (332.3) | (92.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity-based compensation | 1.6 | 0 | 1.6 | ||||
Net income (loss) | (49.1) | 0 | (49.1) | ||||
Amortization of prior net losses | 3.2 | 0 | 3.2 | ||||
Amortization of prior net service credit | (0.1) | 0 | (0.1) | ||||
Foreign currency translation adjustments | 0.4 | 0 | 0.4 | ||||
Ending balance at Mar. 31, 2019 | (349.5) | 0 | 0.3 | 2,329.2 | (2,257.5) | (328.8) | (92.7) |
Beginning balance at Dec. 31, 2018 | (305.5) | 0 | 0.3 | 2,327.6 | (2,208.4) | (332.3) | (92.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (104) | ||||||
Amortization of prior net losses | 12.9 | ||||||
Amortization of prior net service credit | (0.4) | ||||||
Settlement adjustment | 1.8 | ||||||
Net actuarial loss | (51.7) | ||||||
Foreign currency translation adjustments | 0.4 | ||||||
Ending balance at Dec. 31, 2019 | (441.2) | 0 | 0.3 | 2,332.9 | (2,312.4) | (369.3) | (92.7) |
Beginning balance at Mar. 31, 2019 | (349.5) | 0 | 0.3 | 2,329.2 | (2,257.5) | (328.8) | (92.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity-based compensation | 1 | 0 | 1 | ||||
Net income (loss) | (23.6) | 0 | (23.6) | ||||
Amortization of prior net losses | 1.6 | 0 | 1.6 | ||||
Amortization of prior net service credit | (0.1) | 0 | (0.1) | ||||
Foreign currency translation adjustments | 0.5 | 0 | 0.5 | ||||
Ending balance at Jun. 30, 2019 | (370.1) | 0 | 0.3 | 2,330.2 | (2,281.1) | (326.8) | (92.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity-based compensation | 1.8 | 0 | 1.8 | ||||
Net income (loss) | (16) | 0 | (16) | ||||
Amortization of prior net losses | 2.5 | 0 | 2.5 | ||||
Amortization of prior net service credit | (0.1) | 0 | (0.1) | ||||
Settlement adjustment | 1.7 | 0 | 1.7 | ||||
Net actuarial loss | 0.3 | 0 | 0.3 | ||||
Foreign currency translation adjustments | (0.8) | 0 | (0.8) | ||||
Ending balance at Sep. 30, 2019 | (380.7) | 0 | 0.3 | 2,332 | (2,297.1) | (323.2) | (92.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity-based compensation | 0.9 | 0 | 0.9 | ||||
Net income (loss) | (15.3) | 0 | (15.3) | ||||
Amortization of prior net losses | 5.6 | 0 | 5.6 | ||||
Amortization of prior net service credit | (0.1) | 0 | (0.1) | ||||
Settlement adjustment | 0.1 | 0 | 0.1 | ||||
Net actuarial loss | (52) | 0 | (52) | ||||
Foreign currency translation adjustments | 0.3 | 0 | 0.3 | ||||
Ending balance at Dec. 31, 2019 | $ (441.2) | $ 0 | $ 0.3 | $ 2,332.9 | $ (2,312.4) | $ (369.3) | $ (92.7) |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | 1. Description of Business YRC Worldwide, one of the largest transportation service providers in the world, offers its customers a wide range of transportation services. YRC Worldwide has one of the largest, most comprehensive 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 Freight, our LTL subsidiary, YRC Freight Canada, a subsidiary located in Canada that specializes in shipments into, across and out of Canada, and HNRY Logistics, our logistics solutions provider, specializing in truckload, residential, and warehouse solutions. 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 Holland, New Penn and 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. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Accounting Policies | 2. Accounting Policies Accounting policies refer to specific accounting principles and the methods of applying those principles to fairly present our financial position and results of operations in accordance with generally accepted accounting principles. The policies discussed below include those that management has determined to be the most appropriate in preparing our financial statements. Basis of Presentation The accompanying consolidated financial statements include the accounts of YRC Worldwide and its wholly owned subsidiaries. All significant 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. Use of Estimates Management makes estimates and assumptions when preparing the financial statements in conformity with U.S. generally accepted accounting principles which affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include demand deposits and highly liquid investments purchased with maturities of three months or less. Under the Company’s cash management system, checks issued but not presented to banks frequently result in book overdraft balances for accounting purposes which are classified within accounts payable in the accompanying consolidated balance sheets. The change in book overdrafts are reported as a component of operating cash flows for accounts payable as they do not represent bank overdrafts. Concentration of Credit Risks and Other We sell services and extend credit based on an evaluation of the customer’s financial condition, without requiring collateral. Exposure to losses on receivables is principally dependent on each customer’s financial condition. We monitor our exposure for credit losses and maintain allowances for anticipated losses. At December 31, 2019, approximately 79% of our labor force is subject to collective bargaining agreements. In 2019, we agreed to a new labor agreement that, among other things, extend the expiration date of our primary labor agreement from March 31, 2019 to March 31, 2024. This also updated the contribution rates under our multi-employer pension plan. The new agreement provided for wage and benefits increases through the term of the agreement. Finally, the new agreement provided for certain changes to work rules and our use of purchased transportation in certain situations. 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. We record an allowance for doubtful accounts primarily based on historical uncollectible amounts. We also take into account known factors surrounding specific customers and overall collection trends. 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. Our process involves performing ongoing credit evaluations of customers, including the market in which they operate and the overall economic conditions. We continually review historical trends and customer specific factors and make adjustments to the allowance for doubtful accounts as appropriate. Our allowance for doubtful accounts totaled $11.4 million and $11.1 million as of December 31, 2019 and 2018, respectively. 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 subsequent periods. At December 31, 2019 and 2018, our financial statements included a rerate reserve as a reduction to “Accounts Receivable” of $7.9 million and $12.5 million, respectively. 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. At December 31, 2019 and 2018, our financial statements included deferred revenue as a reduction to “Accounts Receivable” of $25.2 million and $25.7 million, respectively. Beginning January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers Revenue Disaggregation We considered the disclosure requirements for revenue disaggregation guidance in ASC Topic 606, Revenue from Contracts with Customers YRC Freight segment (in millions) 2019 2018 LTL revenue $ 2,841.0 $ 2,948.1 Other revenue 247.7 249.2 Total revenue 3,088.7 3,197.3 Regional Transportation segment (in millions) 2019 2018 LTL revenue $ 1,653.0 $ 1,742.5 Other revenue 129.7 152.5 Total revenue 1,782.7 1,895.0 Consolidated (in millions) 2019 2018 LTL revenue $ 4,494.0 $ 4,690.6 Other revenue 377.2 401.4 Total revenue 4,871.2 5,092.0 Self-Insurance Accruals for Claims Claims and insurance accruals, both current and long-term, reflect the estimated settlement cost of claims for workers’ compensation, property damage and liability claims (also referred to as third-party liability claims), and cargo loss and damage that insurance does not cover. We establish and modify reserve estimates for workers’ compensation and property damage and liability claims primarily based upon actuarial analyses prepared by independent actuaries. These reserves are discounted to present value using a risk-free rate based on the year of occurrence. The risk-free rate is the U.S. Treasury rate for maturities that match the expected payout of such claims and was 2.0%, 2.6% and 1.5% for workers’ compensation claims incurred as of December 31, 2019, 2018 and 2017, respectively. The rate was 2.1%, 2.5% and 1.3% for property damage and liability claims incurred as of December 31, 2019, 2018 and 2017, respectively. The process of determining reserve requirements utilizes historical trends and involves an evaluation of accident frequency and severity, claims management, changes in health care costs and certain future administrative costs. The effect of future inflation for costs is considered in the actuarial analysis. Adjustments to previously established reserves are included in operating results in the year of adjustment. Expected aggregate undiscounted amounts and material changes to these amounts related to workers’ compensation and property damage and liability claims as of December 31 are presented below: (in millions) Workers’ Compensation Third-Party Liability Claims Total Undiscounted amount at December 31, 2017 $ 299.3 $ 70.5 $ 369.8 Estimated settlement cost for 2018 claims 95.9 40.0 135.9 Claim payments, net of recoveries (92.4 ) (36.2 ) (128.6 ) Change in estimated settlement cost for prior claim years (15.0 ) (0.7 ) (15.7 ) Undiscounted settlement cost estimate at December 31, 2018 $ 287.8 $ 73.6 $ 361.4 Estimated settlement cost for 2019 claims 103.3 35.2 138.5 Claim payments, net of recoveries (95.9 ) (36.1 ) (132.0 ) Change in estimated settlement cost for prior claim years (9.6 ) 1.1 (8.5 ) Undiscounted settlement cost estimate at December 31, 2019 $ 285.6 $ 73.8 $ 359.4 Discounted settlement cost estimate at December 31, 2019 $ 262.2 $ 73.4 $ 335.6 In addition to the amounts above, accrued settlement cost amounts for cargo claims and other insurance related amounts, none of which are discounted, totaled $13.7 million and $13.9 million at December 31, 2019 and 2018, respectively. Estimated cash payments to settle claims which were incurred on or before December 31, 2019, for the next five years and thereafter are as follows: (in millions) Workers’ Compensation Third-Party Liability Claims Total 2020 $ 78.3 $ 33.5 $ 111.8 2021 50.1 17.9 68.0 2022 33.3 11.4 44.7 2023 22.0 5.8 27.8 2024 16.4 2.6 19.0 Thereafter 85.5 2.6 88.1 Total $ 285.6 $ 73.8 $ 359.4 Equity-Based Compensation We have various equity-based employee compensation plans, which are described more fully in the “Equity-Based Compensation Plans” footnote to our consolidated financial statements. We recognize compensation costs for non-vested shares based on the grant date fair value. For our equity grants, with no performance requirement, we recognize compensation cost on a straight-line basis over the requisite service period (generally three years) based on the grant-date fair value. For our performance-based awards, the Company expenses the grant date fair value of the awards which are probable of being earned in the performance period over the respective service period. Property and Equipment The following is a summary of the components of our property and equipment at cost as of December 31: (in millions) 2019 2018 Land $ 239.9 $ 243.7 Structures 788.4 791.3 Revenue equipment 1,228.2 1,257.4 Technology equipment and software 291.7 259.7 Other (a) 213.4 213.8 Total property and equipment, at cost $ 2,761.6 $ 2,765.9 (a) Other consists of miscellaneous equipment used in field operations. We carry property and equipment at cost less accumulated depreciation. We compute depreciation using the straight-line method based on the following service lives: Years Structures 10 - 30 Revenue equipment 10 - 20 Technology equipment and software 3 - 7 Other 3 - 10 We charge maintenance and repairs to expense as incurred and betterments are capitalized. The cost of replacement tires is expensed at the time those tires are placed into service, as is the case with other repair and maintenance costs. Leasehold improvements are capitalized and amortized over the shorter of their useful lives or the remaining lease term. In addition to purchasing new revenue equipment, we also rebuild the engines of our tractors (at certain time or mile intervals). Because rebuilding an engine increases its useful life, we capitalize these costs and depreciate over the remaining useful life of the unit. The cost of engines on newly acquired revenue equipment is capitalized and depreciated over the estimated useful life of the related equipment. Our investment in technology equipment and software consists primarily of freight movement, automation, administrative, and related software. The Company capitalizes certain costs associated with developing or obtaining internal-use software. Capitalizable costs include external direct costs of materials and services utilized in developing or obtaining the software and payroll and payroll-related costs for employees directly associated with the development of the project. For the years ended December 31, 2019, 2018 and 2017, depreciation expense was $150.5 million, $145.9 million and $147.7 million, respectively. Long-lived assets are reviewed for impairment when events or circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying value of the long-lived assets, the carrying value would be reduced to the estimated fair value. Future cash flow estimates for an impairment review would be based on the lowest level of identifiable cash flows, which are at the operating company level. Fair Value of Financial Instruments From time to time, we hold financial assets held at fair value, which consists of restricted cash held in escrow. Restricted amounts held in escrow are invested in money market accounts and are recorded at fair value based on quoted market prices and have typically been level 1 fair value assets. Assets are considered level 1 if their valuations are based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. As of December 31, 2019 and 2018, we had no restricted amounts held in escrow. The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximates their fair value due to the short-term nature of these instruments. The fair value of our long-term debt is included in the “Debt and Financing” footnote to the consolidated financial statements. Newly-Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases The Company elected 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 did not elect the hindsight method practical expedient which would have allowed us to reassess lease terms and impairment. For leases with a term of twelve months or less, the Company has made an accounting policy election in which the right of use lease (“ROU”) asset and lease liability will not be recognized on the consolidated balance sheet. The Company does not separate lease and non-lease components for its revenue equipment and real property leases. The Company reassessed the accounting for debt financing obligations under the new standard and determined the historical accounting remained appropriate under the new standard. The adoption of this standard impacted our consolidated balance sheet through the recognition of $378.8 million in ROU assets and liabilities as of January 1, 2019. Lease deposits in the amount of $25.4 million were reclassified from “Other assets” to a reduction of “Operating lease liabilities” per the consolidated balance sheet upon adoption of the new standard. The new standard did not impact the calculation of our financial covenants defined under the terms of our credit agreements. See the “Leases” footnote to the consolidated financial statements for additional information. Impact of Recently-Issued Accounting Standards In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses . The Company does not expect this standard to have a material impact on our financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software , that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted this standard on January 1, 2020, but the adoption is not expected to have a material impact on the Company’s consolidated financial statements during 2020. In December 2019, the FASB issued ASU 2019-12, Income Taxes. ginning after December 15, 2020, . The Company does not expect this standard to have a material impact on our financial statements. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | 3. Other Assets The primary components of Other assets at December 31 are as follows: (in millions) 2019 2018 Intangible assets $ 15.0 $ 25.2 Prepayments (a) 1.4 18.0 Other (b) 40.1 21.2 Total $ 56.5 $ 64.4 (a) Prepayments for 2018 primarily consist of prepaid costs for revenue equipment leases, which were reclassed in 2019 after the adoption of ASU 2016-02, Leases (b) Other includes insurance receivables (which are offset by amounts to be paid for claims in excess of self-insured retention), net pension assets, long-term deposits and other immaterial assets of varying types. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | 4. Employee Benefits Qualified and Nonqualified Defined Benefit Pension Plans YRC Worldwide and certain of our operating subsidiaries sponsor qualified and nonqualified defined benefit pension plans for certain employees not covered by collective bargaining agreements (approximately 9,000 current, former and retired employees). Qualified and nonqualified pension benefits are based on years of service and the employees’ covered earnings. Employees covered by collective bargaining agreements participate in various multi-employer pension plans to which YRC Worldwide contributes, as discussed below. Regional Transportation does not offer a defined benefit pension plan and instead offers retirement benefits through contributory 401(k) savings plans, as discussed below. The domestic YRC Worldwide defined benefit pension plans closed to new participants effective January 1, 2004 and the benefit accrual for active employees was frozen effective July 1, 2008. Our actuarial valuation measurement date for our pension plans is December 31. Funded Status The reconciliation of the beginning and ending balances of the projected benefit obligation and the fair value of plan assets for the years ended December 31, 2019 and 2018, and the funded status at December 31, 2019 and 2018, is as follows: (in millions) 2019 2018 Change in benefit obligation: Benefit obligation at beginning of year $ 1,073.2 $ 1,228.4 Interest cost 45.7 44.1 Benefits paid (96.7 ) (110.4 ) Actuarial (gain) loss 106.5 (88.5 ) Other 0.1 (0.4 ) Benefit obligation at year end $ 1,128.8 $ 1,073.2 Change in plan assets: Fair value of plan assets at prior year end $ 874.9 $ 998.3 Actual return on plan assets 112.1 (27.8 ) Employer contributions 9.7 15.2 Benefits paid (96.7 ) (110.4 ) Other — (0.4 ) Fair value of plan assets at year end $ 900.0 $ 874.9 Funded status at year end $ (228.8 ) $ (198.3 ) The underfunded status of the plans of $228.8 million and $198.3 million at December 31, 2019 and 2018, respectively, is recognized in the accompanying consolidated balance sheets as shown in the table below. No plan assets are expected to be returned to the Company during the year ending December 31, 2020. Our long-term strategy is to reduce the risk of our plans and improve the funded status. In 2017, the Company amended the domestic pension plans to provide an automatic commencement of benefit at age 65, regardless of employment status, in an effort to reduce our long-term pension obligations and ongoing annual pension expense. At the same time, the Yellow Transportation Plan was amended to permit the payment of lump sum benefit payments for those participants who reached age 65. Effective January 1, 2018, the Yellow Transportation Plan was amended to permit the payment of lump sum benefit payments for all participants. The impact of these amendments to the benefit obligation is reflected in “Plan amendments” in the above table. These amendments triggered non-cash settlement charges of $10.9 million and $7.6 million in 2018 and 2017, respectively, due to the amount of lump sum benefit payments distributed from plan assets. The lump sum benefit payments reduce pension obligations and are funded from existing plan assets. The non-cash settlement charge results from the requirement to expense the unrecognized actuarial losses associated with the lump sum settlements, which are reflected in nonoperating expenses. The charge had no effect on total equity because the actuarial losses were already recognized in accumulated other comprehensive loss. Accordingly, the effect on retained earnings was offset by a corresponding reduction in accumulated other comprehensive loss. In 2019, the closure of a small plan for Canadian employees resulted in lump sum benefit payments and annuity purchase premium transfers. These payments triggered a non-cash settlement charge of $1.8 million. Like previous non-cash settlement charges, this was reflected in nonoperating expenses, with a corresponding offset in accumulated other comprehensive loss. Benefit Plan Obligations Amounts recognized in the consolidated balance sheets for pension benefits at December 31 are as follows: (in millions) 2019 2018 Noncurrent assets $ 6.1 $ 2.7 Current liabilities 1.0 0.8 Noncurrent liabilities 233.9 200.2 Amounts recognized in accumulated other comprehensive loss at December 31 consist of: (in millions) 2019 2018 Net actuarial loss $ 406.1 $ 368.9 Net prior service credit (9.8 ) (10.3 ) Total $ 396.3 $ 358.6 As shown above, included in accumulated other comprehensive loss at December 31, 2019, are unrecognized actuarial losses of $396.3 million ($372.1 million, net of tax). The expected amortization of actuarial loss and net prior service credit included in accumulated other comprehensive loss and expected to be recognized in net periodic cost in 2020 is $15.0 million and $0.4 million, respectively. Information for pension plans with an accumulated benefit obligation (“ABO”) in excess of plan assets and plan assets that exceed ABO at December 31, 2019 and 2018 is as follows: At December 31, 2019 (in millions) ABO Exceeds Assets Assets Exceed ABO Total Projected benefit obligation $ 960.9 $ 167.9 $ 1,128.8 Accumulated benefit obligation 960.9 167.9 1,128.8 Fair value of plan assets 726.0 174.0 900.0 At December 31, 2018 (in millions) ABO Exceeds Assets Assets Exceed ABO Total Projected benefit obligation $ 927.6 $ 145.6 $ 1,073.2 Accumulated benefit obligation 927.6 145.6 1,073.2 Fair value of plan assets 726.6 148.3 874.9 Assumptions Weighted average actuarial assumptions used to determine benefit obligations at December 31: 2019 2018 Discount rate 3.56 % 4.44 % Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31: 2019 2018 2017 Discount rate 4.44 % 3.77 % 4.27 % Expected rate of return on assets 7.0 % 7.0 % 7.0 % Mortality table (a) Pri-2012 (MP-2019 Scale, Custom) RP-2014 (MP-2016 Scale, Custom) RP-2014 (MP-2016 Scale, Custom) (a) The 2019, 2018 and 2017 mortality tables were based on a custom mortality improvement scale to reflect expectations of underlying plan participants. The discount rate refers to the interest rate used to discount the estimated future benefit payments to their present value, also referred to as the benefit obligation. The discount rate allows us to estimate what it would cost to settle the pension obligations as of the measurement date, December 31, and is used as the interest rate factor in the following year’s pension cost. We determine the discount rate by selecting a portfolio of high quality noncallable bonds such that the coupons and maturities exceed or are similar to our expected benefit payments. In determining the expected rate of return on assets, we consider our historical experience in the plans’ investment portfolio, historical market data and long-term historical relationships as well as a review of other objective indices including current market factors such as inflation and interest rates. Although plan investments are subject to short-term market volatility, we believe they are well diversified and closely managed. Our asset allocation as of December 31, 2019 and 2018, and targeted long-term asset allocation for the plans are as follows: 2019 2018 Target Equities 33.0 % 39.0 % 38.0 % Debt Securities 30.0 % 24.0 % 30.0 % Absolute Return 37.0 % 37.0 % 32.0 % Based on various market factors, we selected an expected rate of return on assets of 7.0% effective for the 2019 and 2018 valuations. We will continue to review our expected long-term rate of return on an annual basis and revise appropriately. The pension trust holds no YRC Worldwide securities. Future Contributions and Benefit Payments We expect to contribute approximately $31.5 million to our single-employer pension plans in 2020. Expected benefit payments from our qualified and non-qualified defined benefit pension plans for each of the next five years and the total benefit payments for the following five years ended December 31 are as follows: (in millions) 2020 2021 2022 2023 2024 2025-2029 Expected benefit payments $ 89.4 $ 85.8 $ 84.3 $ 80.6 $ 80.1 $ 370.1 Pension and Other Post-retirement Costs The components of our net periodic pension cost, other post-retirement costs and other amounts recognized in other comprehensive loss (income) for the years ended December 31, 2019, 2018 and 2017 were as follows: (in millions) 2019 2018 2017 Net periodic benefit cost: Service cost $ — $ — $ 5.4 Interest cost 45.7 44.1 51.1 Expected return on plan assets (57.3 ) (60.0 ) (59.3 ) Amortization of prior net losses 12.8 14.6 15.5 Amortization of prior net service credit (0.4 ) (0.4 ) — Settlement adjustment 1.8 10.9 7.6 Net periodic pension cost $ 2.6 $ 9.2 $ 20.3 Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income): Net actuarial gains (losses) and other adjustments $ 51.9 $ (0.9 ) $ (43.7 ) Net prior service credit — — (10.7 ) Settlement adjustment (1.8 ) (10.9 ) (7.6 ) Amortization of prior net losses (12.8 ) (14.6 ) (15.5 ) Amortization of prior net service credit 0.4 0.4 — Total recognized in other comprehensive loss (income) 37.7 (26.0 ) (77.5 ) Total recognized in net periodic benefit cost and other comprehensive loss (income) $ 40.3 $ (16.8 ) $ (57.2 ) During the years ended December 31, 2019, 2018 and 2017 the income tax expense (benefit) related to amounts in other comprehensive (income) loss was $(0.3) million, $(0.1) million and $13.3 million, respectively. Fair Value Measurement Our pension assets are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of Level 1 assets are based on quoted market prices. The majority of the Level 1 assets presented in the table below include common stock of both U.S. and, to a lesser extent, international companies, and mutual funds, which are actively traded and priced in the market. The fair value of Level 2 assets are based on other significant observable inputs, including quoted prices for similar securities. The Level 2 assets presented in the below table consist primarily of fixed income and absolute return funds where values are based on the quoted prices of similar securities and observable market data. Level 3 assets are those where the fair value is determined based on unobservable inputs. The Level 3 assets consist primarily of private equities, and the assets are either priced at cost less cash distributions for recent asset purchases, third-party valuations or discounted cash flow methods. Assets that are not considered Level 1, 2 or 3 assets are valued at the net asset value (“NAV”) of the underlying investments held, as determined by the fund managers. The methods and assumptions used by third-party pricing sources may include a variety of factors, such as recently executed transactions, existing contracts, economic conditions, industry or market developments, and overall credit ratings. These estimated fair values may differ significantly from the values that would have been used had a ready market for these investments existed and as such, differences could be material. The availability of observable data is monitored by plan management to assess appropriate classification of financial instruments within the fair value hierarchy. Depending upon the availability of such inputs, specific securities may transfer between levels. In such instances, the transfer is reported at the end of the reporting period. The tables below detail by level, within the fair value hierarchy, the pension assets at fair value as of December 31, 2019 and December 31, 2018: Pension Assets at Fair Value as of December 31, 2019 (in millions) Total Level 1 Level 2 Level 3 Equities $ 67.0 $ 66.6 $ 0.4 $ — Private equities 36.4 — — 36.4 Fixed income: Corporate and other 29.0 2.2 18.4 8.4 Government 204.2 53.3 150.9 — Interest bearing 27.2 15.0 12.2 — Investments measured at NAV (a) 536.2 Total plan assets $ 900.0 $ 137.1 $ 181.9 $ 44.8 Pension Assets at Fair Value as of December 31, 2018 (in millions) Total Level 1 Level 2 Level 3 Equities $ 67.7 $ 65.5 $ 2.2 $ — Private equities 43.4 — — 43.4 Fixed income: Corporate and other 24.8 7.7 16.2 0.9 Government 177.1 67.2 109.9 — Interest bearing 25.1 (10.5 ) 35.6 — Investments measured at NAV (a) 536.8 Total plan assets $ 874.9 $ 129.9 $ 163.9 $ 44.3 (a) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The table below presents the activity of our assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3): (in millions) Private Equities Fixed income Total Level 3 Balance at December 31, 2017 $ 46.6 $ 6.0 $ 52.6 Purchases — 0.6 0.6 Sales (0.3 ) — (0.3 ) Unrealized losses (2.9 ) (5.7 ) (8.6 ) Balance at December 31, 2018 $ 43.4 $ 0.9 $ 44.3 Purchases — 8.1 8.1 Sales (16.7 ) (0.8 ) (17.5 ) Realized gains 1.9 — 1.9 Unrealized gains 7.8 0.2 8.0 Balance at December 31, 2019 $ 36.4 $ 8.4 $ 44.8 The following table sets forth a summary of the assets for which a reported NAV is used to estimate the fair value as of December 31, 2019: Fair value estimated using Net Asset Value per Share (in millions) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Private equities (a) $ 127.0 $ 1.7 Redemptions not permitted Fixed income (b) 231.4 4.1 Redemptions not permitted Equities (c) 81.9 — Daily, Monthly 0-30 days Absolute return (d) 95.9 — Monthly, Quarterly 3-75 days Total $ 536.2 (a) Consists of private equity investments in pharmaceuticals and companies primarily in the technology and healthcare sectors. (b) Primarily consists of investments in royalty payments from marketers of pharmaceuticals and related debt securities. (c) Consists of public equity investments in U.S. and non-U.S. markets. (d) Consists of investments in global markets, including derivative securities of equity and fixed income indexes, commodities and interest rates. The following table sets forth a summary of the assets for which a reported NAV is used to estimate the fair value as of December 31, 2018: Fair value estimated using Net Asset Value per Share (in millions) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Private equities (a) $ 155.2 $ 2.8 Redemptions not permitted Fixed income (b) 189.2 0.5 Redemptions not permitted Equities (c) 84.0 — Monthly 3-30 days Absolute return (d) 108.4 — Monthly, Quarterly 2-45 days Total $ 536.8 (a) Consists of private equity investments in pharmaceuticals and companies primarily in the technology and healthcare sectors. (b) Primarily consists of investments in royalty payments from marketers of pharmaceuticals and related debt securities. (c) Consists of public equity investments in U.S. and non-U.S. markets. (d) Consists of investments in global markets, including derivative securities of equity and fixed income indexes, commodities and interest rates. Generally, the investment strategy for private equities consists of direct investments or investments through limited partnerships with managers who purchase interests in non-public companies. The typical investment strategies of the fixed income and equity funds is based on fundamental and quantitative analysis and consists of long and hedged strategies. The general strategy of the absolute return funds consists of alternative investment techniques, including derivative instruments and other unconventional assets, to achieve an absolute return rate. Multi-Employer Plans YRC Freight, Holland, Reddaway, and New Penn contribute to various separate multi-employer health, welfare and pension plans for employees that are covered by our collective bargaining agreements (approximately 79% of total employees of YRC Worldwide and its subsidiaries). The collective bargaining agreements determine the amounts of these contributions. The health and welfare plans provide medical related benefits to active employees and retirees. The pension plans provide retirement benefits to retired participants. We recognize multi-employer pension cost within ‘Salaries, wages and employee benefits’ the contractually required contributions for the period and recognize as a liability any contributions due and unpaid at period end. We do not directly manage the multi-employer plans to which we contribute. The trusts covering these plans are generally managed by trustees, half of whom the unions appoint and half of whom various contributing employers appoint. We expensed the following amounts related to these plans for the years ended December 31: (in millions) 2019 2018 2017 Health and welfare $ 503.5 $ 499.3 $ 482.6 Pension 127.6 115.5 98.1 Total $ 631.1 $ 614.8 $ 580.7 Pension Through the third quarter of 2009, we deferred payment of certain of our contributions to multi-employer pension funds. These deferred payments have been recognized as an operating expense and the liability was recorded as deferred contribution obligations. Beginning in the third quarter of 2009 through May 2011, most of our collective bargaining agreements provided for a temporary cessation of pension contributions so no expense or liability was required to be recognized for that period. In accordance with modifications to our collective bargaining agreements, we agreed to resume making pension contributions effective June 1, 2011 at 25.0% of the contribution rate in effect as of July 1, 2009. The following table provides additional information related to our participation in individually significant multi-employer pension plans for the year ended December 31, 2019: Expiration Date Funding of Collective- Pension Protection Zone Status (b) Improvement or Employer Bargaining Pension Fund (a) EIN Number 2019 2018 Rehabilitation Plan Surcharge Imposed Agreement Central States, Southeast and Southwest Areas Pension Fund 36-6044243 Critical and Declining Critical and Declining Yes No 3/31/2024 Teamsters National 401(k) Savings Plan (c) 52-1967784 N/A N/A N/A No 3/31/2024 Road Carriers Local 707 Pension Fund 51-6106510 Critical and Declining Critical and Declining Yes No 3/31/2024 Teamsters Local 641 Pension Fund 22-6220288 Critical and Declining Critical and Declining Yes No 3/31/2024 (a) The determination of individually significant multi-employer plans is based on our contributions to the plans relative to our total contributions over the periods presented, as well as our contributions to the plans relative to the total contributions that the individual plans received during the periods presented. (b) The Pension Protection Zone Status indicated herein is based on information that the Company obtained from the plans’ Forms 5500. Unless otherwise noted, the most recent PPA zone status available for 2019 and 2018 is for the plan’s year-end during calendar years 2018 and 2017, respectively. Among other factors, plans in the critical or critical and declining zone are generally less than 65 percent funded, plans in the endangered zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. (c) The policies of the Western Conference of Teamsters Pension Trust precluded the Company from reentering the plan on June 1, 2011. The plan did not assess a withdrawal liability and has not done so since June 1, 2011. Contributions related to the employees previously covered by this plan are now being made to the Teamsters National 401(k) Plan. YRC Worldwide was listed in the Central States, Road Carriers Local 707 Pension Fund and Teamsters Local 641 Pension Fund’s Forms 5500 as providing more than 5 percent of the total contributions for 2018 and 2017. We contributed a total of $128.8 million, $112.6 million and $97.8 million to the multi-employer pension funds for the years ended December 31, 2019, 2018 and 2017. The following table provides the pension amounts contributed by fund for those funds that are considered to be individually significant: (in millions) 2019 2018 2017 Central States, Southeast and Southwest Areas Pension Plan $ 77.7 $ 70.7 $ 58.8 Teamsters National 401(k) Savings Plan 19.0 14.7 13.1 Road Carriers Local 707 Pension Fund 2.5 2.2 2.2 Teamsters Local 641 Pension Fund 2.1 1.8 1.5 In 2006, the PPA became law and modified both the Code as it applies to multi-employer pension plans and the Employment Retirement Income Security Act of 1974 (as amended, “ERISA”). The Code and ERISA (in each case, as so modified) and related regulations establish minimum funding requirements for multi-employer pension plans. In 2014, the MPRA became law which modified the ability to suspend accrued benefits of plans facing insolvency by adding a new zone status of Critical and Declining. If any of our multi-employer pension plans fail to meet minimum funding requirements, meet a required funding improvement or rehabilitation plan that the PPA may require for certain of our underfunded plans, obtain from the IRS certain changes to or a waiver of the requirements in how the applicable plan calculates its funding levels, or reduce pension benefits to a level where the requirements are met, then we could be required to make additional contributions to the pension plan. If any of our multi-employer pension plans enters critical status or worse and our contributions are not sufficient to satisfy any rehabilitation plan schedule, the PPA could require us to make additional surcharge contributions to the multi-employer pension plan in the amount of five to ten percent of the existing contributions required by our labor agreement for the remaining term of the labor agreement. In 2016 and 2015, the Central States, Southeast and Southwest Pension Plan and Road Carriers Local 707 Pension Fund filed an application under MPRA with the Department of Treasury requesting the approval of a benefit suspension plan, which was denied. In 2016, the New York State Teamsters Conference Pension and Retirement Fund filed a suspension application which was approved and implemented October 2017. The plan requires annual future employer contribution increases of 3.5% to the plan. If we fail to make our required contributions to a multi-employer plan under a funding improvement or rehabilitation plan, it would expose us to penalties including potential withdrawal liability. If the benchmarks that an applicable funding improvement or rehabilitation plan provides are not met by the end of a prescribed period, the IRS could impose an excise tax on us and the plan’s other contributing employers. These excise taxes are not contributed to the deficient funds, but rather are deposited in the United States general treasury funds. A requirement to materially increase contributions beyond our contractually agreed rate or the imposition of an excise tax on us could have a material adverse impact on the financial results and liquidity of the Company. 401(k) Savings Plans We sponsor the YRC Worldwide Inc. 401(k) Plan and the Reddaway Hourly 401(k) Plan, which are defined contribution plans primarily for employees that our collective bargaining agreements do not cover. The plans permit participants to make contributions to the plans and permit the employer of participants to make contributions on behalf of the participants. Additionally, the Reddaway Hourly 401(k) Plan allows for a non-elective employer contribution. Including non-elective employer contributions, total employer contributions were $12.8 million in 2019, $13.3 million in 2018 and $10.3 million in 2017. Our employees covered under collective bargaining agreements may also participate in union-sponsored 401(k) plans. Annual Incentive Awards The Company provides an annual cash incentive compensation plan (Annual Incentive Plan, or AIP) to certain salaried employees across various levels of the organization which is based on factors such as operating revenues and Adjusted EBITDA achieved for the year, compared to targeted operating results. Results from operations include performance incentive accruals of $29.8 million in 2018, with no such accruals in 2019 or 2017. The AIP awards earned for a year are paid in the first quarter of the following year. |
Debt and Financing
Debt and Financing | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Financing | 5. Debt and Financing Our outstanding debt as of December 31, 2019 and December 31, 2018 consisted of the following: As of December 31, 2019 (in millions) Par Value Discount Debt Issuance Costs Book Value Effective Interest Rate New Term Loan $ 600.0 $ (28.1 ) $ (12.0 ) $ 559.9 (a) 10.5 % ABL Facility — — — — Secured Second A&R CDA 26.0 — (0.1 ) 25.9 7.9 % Unsecured Second A&R CDA 45.2 — (0.1 ) 45.1 7.9 % Lease financing obligations 231.6 — (0.3 ) 231.3 16.5 % Total debt $ 902.8 $ (28.1 ) $ (12.5 ) $ 862.2 Current maturities of Unsecured Second A&R CDA (1.4 ) — — (1.4 ) Current maturities of lease financing obligations (2.7 ) — — (2.7 ) Long-term debt $ 898.7 $ (28.1 ) $ (12.5 ) $ 858.1 As of December 31, 2018 (in millions) Par Value Discount Debt Issuance Costs Book Value Effective Interest Rate Prior Term Loan $ 573.7 $ (7.8 ) $ (6.5 ) $ 559.4 (b) 11.4 % ABL Facility — — — — Secured Second A&R CDA 26.9 — (0.1 ) 26.8 7.9 % Unsecured Second A&R CDA 46.7 — (0.2 ) 46.5 7.9 % Lease financing obligations 242.7 — (0.5 ) 242.2 14.9 % Total debt $ 890.0 $ (7.8 ) $ (7.3 ) $ 874.9 Current maturities of Term Loan (14.2 ) — — (14.2 ) Current maturities of Unsecured Second A&R CDA (1.5 ) — — (1.5 ) Current maturities of lease financing obligations (5.0 ) — — (5.0 ) Long-term debt $ 869.3 $ (7.8 ) $ (7.3 ) $ 854.2 (a) As of December 31, 2019, the stated interest rate represented a variable interest rate of 1, 3 or 6-month LIBOR, with a floor of 1.0% plus a fixed margin of 7.50%. (b) As of December 31, 2018, the stated interest rate represented a variable interest rate of 1, 3 or 6-month LIBOR, with a floor of 1.0% plus a fixed margin of 8.50%. Credit Facilities As of December 31, 2019, we had two primary credit facilities that we utilized to support our liquidity needs: a $600.0 million Term Loan and a $450.0 million ABL Facility. The ABL Facility is used to support our outstanding letters of credit commitments. We have set forth a brief description of our two primary credit facilities and our other financing arrangements in place at December 31, 2019 below. New Term Loan On September 11, 2019, the Company and certain of its subsidiaries, as guarantors (the “Term Guarantors”), amended and restated the existing credit facilities under the credit agreement dated February 13, 2014 (the “Prior Term Loan Agreement”) and entered into a new term loan agreement (“New Term Loan Agreement”) with funds managed by Apollo Global Management, LLC acting collectively as lead lender, and Cortland Products Corp, as administrative agent and collateral agent. The obligations of the Company under the New Term Loan Agreement are unconditionally guaranteed by the Term Guarantors. The $600.0 million term loan (the “New Term Loan”) has a maturity date of June 30, 2024, with a single payment due at maturity of the outstanding balance. The New Term Loan bears interest at LIBOR (subject to a floor of 1.0%) plus a margin of 7.5% per annum, payable at least quarterly in cash, subject to a 1.0% margin step down in the event the Company achieves greater than $400.0 million in trailing-twelve-month Adjusted EBITDA (defined in the New Term Loan Agreement as “Consolidated EBITDA”). Obligations under the New Term Loan are secured by a perfected first priority security interest in (subject to permitted liens) assets of the Company and the Term Guarantors, including but not limited to all of the Company’s wholly owned terminals, tractors and trailers, subject to certain limited exceptions. The New Term Loan eliminated the total maximum leverage ratio covenant that the Company was subject to under the Prior Term Loan Agreement and introduced a new covenant that requires the Company maintain a minimum trailing-twelve-month Adjusted EBITDA of $200.0 million, measured quarterly. The New Term Loan is subject to repayment with, among other things, 100.0% of the net cash proceeds from the disposition of assets outside the ordinary course of business, except that the Company is permitted to keep the first $40.0 million in trucking terminal property sales over the term of the loan to reinvest in operations or other strategic initiatives, where applicable. Borrowings under the New Term Loan may be voluntarily prepaid, provided however, that any such prepayment or mandatory prepayment (other than with respect to a prepayment with excess cash flow) will be subject to a 3.0% premium until the first anniversary date, a 2.0% premium from the first anniversary date until the second anniversary date, and a 1.0% premium from the second anniversary date until the third anniversary date, and 0.0% thereafter. The New Term Loan resulted in an extinguishment of $11.2 million in capitalized issuance discount and unamortized deferred debt issuance costs relating to the prior term loan. The original issuance discount and transaction fees relating to the New Term Loan were capitalized and will be amortized through interest expense over the life of the New Term Loan. Risks and Uncertainties Regarding Compliance with Credit Facility Financial Covenants Under the New Term Loan, we are required to maintain at least $200.0 million We began taking these actions because of the freight recession our industry experienced in 2019, and that has persisted into early first quarter 2020, that negatively impacted our ability to fully realize operational efficiencies arising from our New NMFA with the International Brotherhood of Teamsters primarily due to the ensuing depressed volume levels and the inherent contractual cost increase associated with the New NMFA. Our ability to satisfy our liquidity needs and meet our minimum Adjusted EBITDA requirement during the next twelve months and thereafter is dependent upon our ability to improve operating performance over 2019 to offset the contractual wage and benefit increases under the New NMFA and other inflationary expense increases associated with among other things our employees and insurance programs. We may extend and or supplement the actions we began taking in 2019 if we continue to experience adverse conditions such as lower volumes, pricing, yield or lower productivities among others, that might impact our forecasted performance. If we are unable to achieve the results required to comply with this covenant in one or more quarters over the next twelve months, we may be required to take specific actions in addition to those described above, including but not limited to, additional reductions in headcount and targeted procurement initiatives to reduce operating costs and, or alternatively, seek an amendment or waiver from our lenders. Obtaining a waiver or an amendment is not within our control, and if unsuccessful, the lenders may exercise the rights available to them under the New Term Loan . $450 Million ABL Facility On February 13, 2014, we entered into our $450 million ABL Facility from a syndicate of banks arranged by Citizens Bank N.A. (formerly known as RBS Citizens, N.A.) (the “ABL Agent”), Merrill Lynch, Pierce, Fenner & Smith and CIT Finance LLC. The ABL Facility was amended on June 28, 2016 to extend the maturity date to June 28, 2021. YRC Worldwide and our subsidiaries, YRC Freight, Reddaway, Holland and New Penn are borrowers under the ABL Facility, and certain of the Company’s domestic subsidiaries are guarantors thereunder. Availability under the ABL Facility 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 outstanding letters of credit and revolving loans. Eligible borrowing base cash is cash that is deposited from time to time into a segregated restricted account and is included in “Restricted amounts held in escrow” in the accompanying consolidated balance sheet. The ABL Facility provides for a $100 million uncommitted accordion to increase the revolving commitment in the future. For the years ended December 31, 2019 and 2018, we had $337.8 million and $341.3 million of outstanding letters of credit, respectively, and no outstanding loans. At our option, borrowings under the ABL Facility bear interest at either: (i) the applicable LIBOR rate plus 1.75%, as amended, or (ii) the base rate (as defined in the ABL Facility) plus 0.75%, as amended. Letter of credit fees equal to the applicable LIBOR margin in effect, 1.75% as amended, are charged quarterly in arrears on the average daily stated amount of all letters of credit outstanding during the quarter. Unused line fees are charged quarterly in arrears (such unused line fee percentage is equal to 0.375% per annum if the average revolver usage is less than 50% or 0.25% per annum if the average revolver usage is greater than 50%.) The ABL Facility is secured by a perfected first priority security interest (subject to permitted liens) in accounts receivable, cash, deposit accounts and other assets related to accounts receivable of the Company and the other loan parties and an additional second priority security interest (subject to permitted liens) in substantially all remaining assets of the borrowers and the guarantors other than the CDA Collateral. The ABL Facility contains conditions, representations and warranties, events of default and indemnification provisions that are customary for financings of this type, including, but not limited to, a springing minimum fixed charge coverage ratio covenant, borrowing base reporting, limitations on incurrence of debt, investments, capital expenditures, liens on assets, certain sale and leaseback transactions, transactions with affiliates, mergers, consolidations, purchases and sales of assets, and restricted payments. Certain provisions relating to investments, restricted payments and capital expenditures are relaxed upon meeting specified payment conditions or debt repayment conditions. Second Amended and Restated Contribution Deferral Agreement Pursuant to the terms of the collective bargaining agreement with the IBT, the Company’s subsidiaries began making contributions to the Funds (defined below) for the month beginning June 1, 2011 at the rate of 25% of the contribution rate in effect on July 1, 2009. Certain of our subsidiaries are parties to the Amended and Restated Contribution Deferral Agreement (the “A&R CDA”) with certain multiemployer pension funds named therein (collectively, the “Funds”) pursuant to which we are permitted to continue to defer pension payments and deferred interest owed to such Funds as of July 22, 2011 (each, “Deferred Pension Payments” and “Deferred Interest”). The A&R CDA was last amended in January 2018 (herein referred to as the “Amended Second A&R CDA”). The Deferred Pension Payments and Deferred Interest bear interest at a floating rate as set forth in the Amended Second A&R CDA as well as annual scheduled amortization equal to 2.0% of the amount outstanding as of November 30 of each applicable year. The Amended Second A&R CDA further provides for first lien on certain security first priority real estate collateral and a maturity date of December 31, 2022 on the Deferred Pension Payments and Deferred Interest obligations. Maturities The principal maturities over the next five years and thereafter of total debt as of December 31, 2019 was as follows: (in millions) Term Loan ABL Facility Second A&R CDA Lease Financing Obligations (a) Total 2020 $ — $ — $ 1.4 $ 2.5 $ 3.9 2021 — — 1.4 2.3 3.7 2022 — — 68.4 3.2 71.6 2023 — — — 3.9 3.9 2024 600.0 — — 1.9 601.9 Thereafter — — — 217.8 217.8 Total $ 600.0 $ — $ 71.2 $ 231.6 $ 902.8 (a) Lease financing obligations subsequent to 2024 of $217.8 million consist primarily of interest payments. 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: December 31, 2019 December 31, 2018 (in millions) Book Value Fair Value Book Value Fair Value Prior Term Loan $ — $ — $ 559.4 $ 546.0 New Term Loan 559.9 559.3 — — ABL Facility — — — — Lease financing obligations 231.3 233.7 242.2 234.7 Second A&R CDA 71.0 71.7 73.3 70.0 Total debt $ 862.2 $ 864.7 $ 874.9 $ 850.7 The fair values of the Term Loans and 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). Liquidity Our principal sources of liquidity are cash and cash equivalents, available borrowings under our ABL Facility and any prospective net cash flow from operations. As of December 31, 2019, our maximum availability under our ABL Facility was $37.7 million, and our managed accessibility is $0.2 million. Maximum availability 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 $337.8 million of outstanding letters of credit. Our Managed Accessibility of $0.2 million represents the maximum amount we would access on the ABL Facility and is adjusted for eligible receivables plus eligible borrowing base cash measured as of December 31, 2019. If eligible receivables fall below the threshold management uses to measure availability, which is 10% of the borrowing line, the Credit Agreement governing the ABL Facility permits adjustments from eligible borrowing base cash to restricted cash prior to the compliance measurement date of January 15, 2020. As of January 15, 2020, we had less than 10% of the borrowing line in eligible receivables and moved $29.0 million of cash into restricted cash, as permitted under the ABL Facility, which effectively put our cash and cash equivalents and Managed Accessibility to $80.4 million as of December 31, 2019. As of December 31, 2018, our availability under our ABL Facility was $39.2 million. Of the $39.2 million in availability, Managed Accessibility was $1.2 million. Our cash and cash equivalents and Managed Accessibility was $203.8 million as of December 31, 2018. The table below summarizes cash and cash equivalents and Managed Accessibility for the years ended December 31: (in millions) 2019 2018 Cash and cash equivalents 109.2 227.6 Less: amounts placed into restricted cash subsequent to year-end (29.0 ) (25.0 ) Managed Accessibility 0.2 1.2 Total cash and cash equivalents and Managed Accessibility $ 80.4 $ 203.8 Outside of funding normal operations, our principal uses of cash include making contributions to our various multi-employer pension funds and single-employer pension plans, and meeting our other cash obligations, including, but not limited to, paying principal and interest on our funded debt, payments on equipment leases and funding capital expenditures. Capital Expenditures/Operating Leases Our capital expenditures for the years ended December 31, 2019 and 2018 were $143.2 million and $145.4 million, respectively. These amounts were principally used to fund the purchase of used tractors and trailers, refurbish engines for our revenue fleet, containers and for capitalized costs to improve our technology infrastructure. For the year ended December 31, 2019, we entered into new operating lease commitments for revenue equipment totaling $111.0 million, with such payments to be made over the average lease term of 4 years with a capital equivalent of $131.8 million. As December 31, 2019, our operating lease obligations for 2020 are $154.4 million and our operating lease obligations through 2030 total $451.1 million and are expected to increase as we lease additional revenue equipment in future years. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 6. Leases The Company determines if an arrangement is a lease or contains a lease at inception. We lease certain revenue equipment and real estate, predominantly through operating leases, and we have an immaterial number of leases in which we are a lessor. Operating leases are expensed on a straight-line basis over the life of the lease beginning on the lease commencement date. We determine the lease term by assuming the exercise of renewal options that are reasonably certain. The lease term is used to determine whether a lease is finance or operating and is used to calculate rent expense. Additionally, the depreciable life of leased assets and leasehold improvements is limited by the expected lease term. Operating lease balances are classified as operating lease right-of-use (“ROU”) assets and current and long-term operating lease liabilities on our consolidated balance sheet. We have an immaterial amount of finance leases that are included in property and equipment, other current liabilities, and other long-term liabilities on our consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate adjusted for duration and other factors to represent the rate we would have to pay to borrow on a collateralized basis based on the information available at commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease and we will adjust the life of the lease when it is reasonably certain that we will exercise these options. We have lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. We have variable lease components, including lease payments with payment escalation based on the Consumer Price Index, and other variable items, such as common area maintenance and taxes. Key assumptions include discount rate, the impact of purchase options and renewal options on our lease term, as well as the assessment of residual value guarantees. Our revenue equipment leases generally have purchase options. However, in most circumstances we are not typically certain of exercising the purchase option as we may sign a new lease, return the equipment to the lessor, or exercise the option as circumstances dictate. Our revenue equipment leases often contain residual value guarantees, but they are not reflected in our lease liabilities as our lease rates are such that residual value guarantees are not expected to be owed at the end of our leases. Wrecked units are expensed in full upon damage and paid out to the lessor. Our real estate leases will often have an option to extend the lease, but we are typically not reasonably certain of exercising options to extend as we have the ability to move to more advantageous locations over time, relocate to other leased and owned locations, or discontinue service from particular locations over time as customer demand changes. Leases (in millions) Classification 2019 Assets Operating lease assets Operating lease right-of-use assets $ 386.0 Finance lease assets Net property and equipment 2.6 Total leased assets $ 388.6 Liabilities Current Operating Current operating lease liabilities $ 120.8 Finance Other current and accrued liabilities 0.2 Noncurrent Operating Operating lease liabilities 246.3 Finance Claims and other liabilities 3.3 Total lease liabilities $ 370.6 Lease Cost (in millions) Classification Year Ended December 31, 2019 Operating lease cost (a) Purchased transportation; Fuel, operating expenses and supplies $ 168.0 Short-term cost Purchased transportation; Fuel, operating expenses and supplies 14.2 Variable lease cost Purchased transportation; Fuel, operating expenses and supplies 5.9 Finance lease cost Amortization of leased assets Depreciation and amortization 0.4 Interest on lease liabilities Interest expense 0.5 Total lease cost $ 189.0 (a) Operating lease cost represent non-cash amortization of ROU assets and accretion of the discounted lease liabilities and is segregated on the statement of consolidated cash flows. Remaining Maturities of Lease Liabilities Operating Leases Finance Leases Total 2020 $ 154.4 $ 0.6 $ 155.0 2021 128.9 0.6 129.5 2022 77.8 0.6 78.4 2023 41.1 0.6 41.7 2024 16.3 0.7 17.0 After 2024 32.6 3.4 36.0 Total lease payments $ 451.1 $ 6.5 $ 457.6 Less: Interest 84.0 3.0 87.0 Present value of lease liabilities $ 367.1 $ 3.5 $ 370.6 Lease Term and Discount Rate (years and percent) Weighted-Average Remaining Lease Term Weighted-Average Discount Rate Operating leases 3.7 11.0% Finance leases 9.8 11.3% Other Information (in millions) Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 154.6 Operating cash flows from finance leases 0.5 Financing cash flows from finance leases 0.3 Leased assets obtained in exchange for new operating lease liabilities $ 129.7 Below is the Company’s contractual cash obligation table as of December 31, 2018, that disclosed operating lease payments for the next five years and thereafter. We had no material capital leases as of December 31, 2018. Payments Due by Period (in millions) Total Less than 1 year 1-3 years 3-5 years After 5 years Operating leases $ 429.2 $ 138.4 $ 212.0 $ 63.3 $ 15.5 |
Equity-Based Compensation Plans
Equity-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation Plans | 7. Equity-Based Compensation Plans We reserved 2.5 million shares for issuance to key management personnel and directors under the 2019 long-term incentive and equity award plan. As of December 31, 2019, 1.9 million shares remain available for future issuance under this plan. The plan permits the issuance of restricted stock and stock units, as well as options, stock appreciation rights, and performance stock and performance stock unit awards. Awards under the plan can be generally satisfied in cash or shares at the discretion of the Board of Directors. According to the plan provisions, the stock units provide the holders the right to receive one share of our Common Stock upon vesting (and distribution) of one stock unit. The plan requires the exercise price of any option granted may not be less than the fair market value of a share of our Common Stock on the date of grant. Performance Based Awards In 2019, the Company granted performance stock and performance stock unit awards to key management personnel and directors, respectively, under its 2011 and 2019 long-term incentive plans. In addition to meeting service conditions, these awards are to vest upon the attainment of a 30-day volume-weighted average share price equal to or greater than $11.75 of the Company’s common stock on or before December 31, 2020 (“Stock Price Goal”). For key management personnel, typically half of their awards will vest 100% on the achievement of the Stock Price Goal and the remaining shares will vest on the 12-month anniversary of the same date. In all cases, however, key management personnel must also continue to remain employed by the Company until shares vest to receive their performance stock awards. In addition to meeting the Stock Price Goal, directors were required to serve on the Board until the earlier of the 2019 Annual Stockholders Meeting or June 30, 2019 (the “Board Service Requirement”). All directors who received performance stock unit awards met the Board Service Requirement. However, all but one of the current and former members of the Board of Directors who received these performance stock unit awards voluntarily forfeited their performance stock units in December 2019. A summary of the 2019 performance-based unvested stock and performance-based unvested stock unit awards are presented in the following table: Shares/units (in thousands) Weighted Average Grant-Date Fair Value Unvested at December 31, 2018 — $ — Granted 2,927 $ 2.59 Forfeited (642 ) $ 3.20 Unvested at December 31, 2019 2,285 $ 2.42 The intrinsic value of unvested shares as of December 31, 2019 was $5.8 million. The Company records expense on a straight-line basis over the service period. For the year ended December 31, 2019, the Company recorded compensation expense for these stock awards of $2.6 million. Unrecognized compensation expense related to restricted stock awards of $2.9 million at December 31, 2019 is expected to be recognized over a weighted-average period of 0.4 years. In 2015, the Company granted performance stock unit awards to employees under its 2015 long-term incentive plan. The awards provided a target number of stock units that vested equally over three years. A summary of performance-based unvested stock unit activity is as follows: Units (in thousands) Weighted Average Grant-Date Fair Value Unvested at December 31, 2016 261 $ 17.98 Vested (141 ) 17.90 Forfeited (6 ) 18.23 Unvested at December 31, 2017 114 $ 18.06 Vested (114 ) 18.06 Forfeited — — Unvested at December 31, 2018 — $ — Vested — — Forfeited — — Unvested at December 31, 2019 — $ — The Company expenses the grant date fair value of the awards earned in the performance period over the respective service periods. For the years ended December 31, 2018 and 2017, the Company recognized compensation expense of $0.1 million and $0.9 million, respectively. These awards were fully expensed by February 2018. Restricted Stock A summary of the activity of our unvested restricted stock and stock unit awards are presented in the following table: Shares/units (in thousands) Weighted Average Grant-Date Fair Value Unvested at December 31, 2016 1,175 $ 11.30 Granted 496 12.43 Vested and distributed (306 ) 11.91 Forfeited (58 ) 12.28 Unvested at December 31, 2017 1,307 $ 11.55 Granted 730 9.35 Vested and distributed (457 ) 10.91 Forfeited (164 ) 11.31 Unvested at December 31, 2018 1,416 $ 10.65 Granted 437 5.39 Vested and distributed (779 ) 9.16 Forfeited (81 ) 10.74 Unvested at December 31, 2019 993 $ 9.50 All of the members of the Board of Directors have deferred receipt of the Common Stock underlying some or all of the restricted stock units they have been awarded until a later date, such as when the director ceases to serve on the Board or, under certain circumstances, upon a change of control. Thus, while some of these restricted stock units have vested, the directors have not yet received the underlying Common Stock. For the years ended December 31, 2019, 2018, and 2017, the total number of restricted stock units that are vested but for which the underlying Common Stock has not been distributed was 500,000, 660,000, and 528,000, respectively; these shares are shown as unvested in the above table. The intrinsic value of unvested shares as of December 31, 2019 was $2.5 million. The Company records expense on a straight-line basis over the vesting term. For the years ended December 31, 2019, 2018 and 2017, the Company recorded compensation expense for restricted stock awards of $3.6 million, $6.2 million, and $5.6 million, respectively. Unrecognized compensation expense related to restricted stock awards of $1.8 million at December 31, 2019 is expected to be recognized over a weighted-average period of 0.7 years. The vesting provisions for the restricted stock and stock unit awards and the related number of shares granted during the year ended December 31 are as follows: Shares/units (in thousands) Vesting Terms 2019 2018 2017 50% immediately and 50% on the 1 year anniversary of grant date 162 — — 100% immediately 186 132 106 33.3% per year for three years 89 452 85 100% on February 14, 2020 — — 305 100% on July 31, 2018 — 146 — Total restricted stock and stock units granted 437 730 496 The fair value of non-vested shares is determined based on the closing trading price of our shares on the grant date. The fair value of shares vested and distributed during the years ended December 31, 2019, 2018 and 2017 was $7.1 million, $5.0 million, and $3.6 million, respectively. The outstanding awards under our stock compensation plans are considered participating securities in our earnings per share calculation. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes We use the asset and liability method to reflect income taxes on our financial statements pursuant to ASC 740. We recognize deferred tax assets and liabilities by applying enacted tax rates to the differences between the carrying value of existing assets and liabilities and their respective tax basis and to loss carryforwards. Tax credit carryforwards are recorded as deferred tax assets. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that the change occurs. We assess the validity of deferred tax assets and loss and tax credit carryforwards and provide valuation allowances when we determine it is more likely than not that such assets, losses, or credits will not be realized. We have not recognized deferred taxes relative to foreign subsidiaries’ earnings that are deemed to be permanently reinvested. Any related taxes associated with such earnings are not material. Deferred tax liabilities (assets) were comprised of the following at December 31: (in millions) 2019 2018 Depreciation $ 99.5 $ 109.0 Right of use - leases 93.7 — Deferred revenue 6.3 9.3 Intangibles 3.4 6.0 State taxes 19.6 19.9 Other 16.0 15.2 Deferred tax liabilities 238.5 159.4 Claims and insurance (89.9 ) (84.8 ) Net operating loss carryforwards (210.7 ) (199.9 ) Employee benefit accruals (94.8 ) (88.9 ) Sale/leaseback transactions (55.5 ) (54.5 ) Lease liabilities (93.8 ) — Other (28.4 ) (20.6 ) Deferred tax assets (573.1 ) (448.7 ) Valuation allowance 334.0 291.1 Net deferred tax assets (239.1 ) (157.6 ) Net deferred tax (asset) liability $ (0.6 ) $ 1.8 The net deferred tax (asset) liability of ($0.6) million and $1.8 million as of December 31, 2019 and 2018, respectively, is included as a separate line item in each of the accompanying balance sheets. Current income tax payable was $1.6 million and $5.8 million as of December 31, 2019 and 2018, respectively, and is included in “Other current and accrued liabilities” in the accompanying balance sheets. As of December 31, 2019, the Company has remaining federal net operating loss carryforwards of approximately $756.5 million. Deemed ownership changes that occurred in July 2011, in July 2013 and in January 2014 imposed annual and cumulative limits under the Code on the utilization of these carryforwards. These limits are not expected to inhibit the Company’s ability to utilize these losses over their carry forward periods. Carryforwards of $690.0 million incurred prior to 2018 expire between 2030 and 2037. Pursuant to the Tax Act, net operating losses incurred after 2017 are available to be carried forward indefinitely. As of December 31, 2019 $0.1 million As of December 31, 2019 and 2018, a valuation allowance of $334.0 million and $291.1 million has been established for deferred tax assets because, based on available sources of future taxable income, it is more likely than not that those assets will not be realized. A reconciliation between income taxes at the federal statutory rate and the consolidated effective tax rate follows: 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net (0.7 %) 14.1 % (2.8 )% Foreign tax rate differential (2.6 %) 12.1 % (10.0 )% Permanent differences (0.6 %) 8.3 % (8.9 )% Valuation allowance (17.7 )% (17.5 )% (48.6 )% Benefit from intraperiod tax allocation under ASC 740 — % — % 73.5 % Net change in unrecognized tax benefits 0.6 % (0.9 )% 0.5 % Other, net (primarily prior year return to provision) 4.0 % (1.6 )% 1.6 % Effective tax rate 4.0 % 35.5 % 40.3 % The income tax provision (benefit) consisted of the following: (in millions) 2019 2018 2017 Current: Federal $ — $ — $ (0.9 ) State (3.3 ) 5.4 0.8 Foreign 2.0 6.8 6.0 Current income tax expense (benefit) (1.3 ) 12.2 5.9 Deferred: Federal — — (13.3 ) State — — — Foreign (3.0 ) (1.1 ) 0.1 Deferred income tax benefit (3.0 ) (1.1 ) (13.2 ) Income tax expense (benefit) (4.3 ) 11.1 (7.3 ) Based on the income (loss) before income taxes: Domestic (104.7 ) 13.6 (30.5 ) Foreign (3.6 ) 17.7 12.4 Income (Loss) before income taxes $ (108.3 ) $ 31.3 $ (18.1 ) The Company applies the intraperiod tax allocation rules of ASC 740 to allocate income taxes among continuing operations, other comprehensive income (loss), and additional paid-in capital when our situation meets the criteria as prescribed in the rule. During 2017, the Company recognized $13.3 million of deferred benefit in the statement of consolidated operations and an equal and offsetting deferred tax expense in other comprehensive income (loss) included in the statement of consolidated comprehensive income (loss) due to the application of the exception within the intraperiod tax allocation rules. There was no domestic deferred benefit recognized in 2019 or 2018, as the exception did not apply. This allocation has no effect on total tax provision or total valuation allowance. Uncertain Tax Positions A rollforward of the total amount of unrecognized tax benefits for the years ended December 31 is as follows: (in millions) 2019 2018 Unrecognized tax benefits at January 1 $ 59.2 $ 56.8 Increases related to: Tax positions taken during a prior period — 7.1 Tax positions taken during the current period 0.5 0.4 Decreases related to: Tax positions taken during a prior period (0.1 ) (0.1 ) Lapse of applicable statute of limitations (1.1 ) (4.8 ) Settlements with taxing authorities — (0.2 ) Unrecognized tax benefits at December 31 $ 58.5 $ 59.2 At December 31, 2019 and 2018, there are $9.8 million and $10.5 million of benefits that, if recognized, would affect the effective tax rate. We accrued interest of $0.9 million and $0.8 million for each of the years ended December 31, 2019 and 2018, respectively, and reversed $1.0 million and $0.3 million of previously accrued interest on uncertain tax positions during the years ended December 31, 2019 and 2018 for a net decrease of ($0.1) million for 2019 and a net increase $0.5 million for 2018, respectively. The reversals related primarily to statute expirations and other favorable resolution of prior uncertain positions. The total amount of interest accrued for uncertain tax positions is $2.7 million and $2.8 million as of December 31, 2019 and 2018. During the year ended December 31, 2019, we paid no amounts to settle audits. During the year ended December 31, 2018, we paid inconsequential amounts of tax and interest to settle state audits of tax years 2010 through 2014 for certain of our subsidiaries, and we reduced our previously recorded liability for unrecognized tax benefits accordingly. We have not accrued any penalties relative to uncertain tax positions. We have elected to treat interest and penalties on uncertain tax positions as “Interest expense” and “Other operating expenses”, respectively. It is reasonably possible that the existing unrecognized tax benefits may decrease over the next twelve months by as much as $7.3 million as a result of developments in examinations, or from the expiration of statutes of limitation. Tax years that remain subject to examination for our major tax jurisdictions as of December 31, 2019: Statute remains open 2005-2018 Tax years currently under examination/exam completed 2005-2013 Tax years not examined 2014-2019 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | 9. Business Segments We report financial and descriptive information about our reportable operating segments on a basis consistent with that used internally for evaluating segment performance and allocating resources to segments. We evaluate performance primarily on operating income. 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, finance and accounting, legal, revenue management, risk management, procurement, and security. 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 excluded from Adjusted EBITDA. Corporate identifiable assets primarily consist of cash and cash equivalents, restricted amounts held in escrow, information technology assets, and deferred debt issuance costs. Intersegment revenue relates to transportation services between our 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. As noted in Management’s Discussion and Analysis of Financial Condition and Results of Operations Revenue from foreign sources totaled $79.6 million, $104.1 million, and $99.3 million for the years ended December 31, 2019, 2018, and 2017, respectively, and is mainly derived from Canada and, to a lesser extent, Mexico. Long-lived assets located in foreign countries totaled $7.2 million, $6.5 million and $5.3 million at December 31, 2019, 2018, and 2017, respectively. The following table summarizes our operations by business segment: (in millions) YRC Freight Regional Transportation Corporate/ Eliminations Consolidated 2019 External revenue $ 3,088.7 $ 1,782.7 $ (0.2 ) $ 4,871.2 Operating income (loss) 38.3 (4.8 ) (17.3 ) 16.2 Identifiable assets 1,317.0 746.6 (232.0 ) 1,831.6 Acquisition of property and equipment (89.6 ) (45.5 ) (8.1 ) (143.2 ) Proceeds from disposal of property and equipment 14.1 11.8 — 25.9 Depreciation and amortization 86.5 64.6 1.3 152.4 2018 External revenue $ 3,197.3 $ 1,895.0 $ (0.3 ) $ 5,092.0 Operating income (loss) 85.0 70.7 (12.8 ) 142.9 Identifiable assets 973.6 626.4 17.1 1,617.1 Acquisition of property and equipment (76.5 ) (62.9 ) (6.0 ) (145.4 ) Proceeds from disposal of property and equipment 35.8 0.6 — 36.4 Depreciation and amortization 82.2 65.0 0.5 147.7 2017 External revenue $ 3,067.9 $ 1,823.4 $ (0.3 ) $ 4,891.0 Operating income (loss) 60.7 67.9 (9.6 ) 119.0 Identifiable assets 1,042.1 607.4 (64.0 ) 1,585.5 Acquisition of property and equipment (66.6 ) (36.6 ) (0.1 ) (103.3 ) Proceeds from disposal of property and equipment 8.1 0.7 — 8.8 Depreciation and amortization 84.8 62.9 — 147.7 |
Shareholders' Deficit
Shareholders' Deficit | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Deficit | 10. Shareholders’ Deficit The following reflects the activity in the shares of our common stock for the years ended December 31: Common Shares (in thousands) 2019 2018 2017 Beginning balance 33,090 32,733 32,473 Issuance of equity awards, net 625 357 260 Ending balance 33,715 33,090 32,733 The Company issued to the IBT one share of Series A Voting Preferred Stock that entitles the holder to elect two directors to the Company’s Board of Directors. Our Term Loan agreement in place as of December 31, 2019, restricts the ability of YRC Worldwide to declare dividends on its outstanding capital stock. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | 11. Earnings (Loss) Per Share We calculate basic earnings (loss) per share by dividing our net earnings (loss) available to common shareholders by our weighted-average shares outstanding at the end of the period. The calculation for diluted earnings (loss) 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 (loss) per share for the years ended December 31, 2019, 2018, and 2017 are as follows: (dollars in millions, except per share data, shares and stock units in thousands) 2019 2018 2017 Basic and dilutive net income (loss) $ (104.0 ) $ 20.2 $ (10.8 ) Basic weighted average shares outstanding 33,252 32,983 32,685 Effect of dilutive securities: Unvested shares and stocks units (a) — 876 — Dilutive weighted average shares outstanding 33,252 33,859 32,685 Basic earnings (loss) per share (b) $ (3.13 ) $ 0.61 $ (0.33 ) Diluted earnings (loss) per share (b) $ (3.13 ) $ 0.60 $ (0.33 ) (a) (b) Given our net loss position for the year ended December 31, 2019 and 2017, there are no dilutive securities for this period. Our anti-dilutive securities for the years ended December 31 are as follows: (shares in thousands) 2019 2018 2017 Anti-dilutive unvested shares and options 610 51 8 |
Commitments, Contingencies, And
Commitments, Contingencies, And Uncertainties | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Uncertainties | 12. Commitments, Contingencies, and Uncertainties Department of Defense Complaints In December 2018, the United States on behalf of the United States Department of Defense filed a Complaint in Intervention (“Complaint”) against the Company in the U.S. District in the Western District of New York captioned United States ex rel. James Hannum v. YRC Freight, Inc.; Roadway Express, Inc.; and Yellow Transportation, Inc., Class Action Securities Complaint In January 2019, a purported class action lawsuit captioned Christina Lewis v. YRC Worldwide Inc., et al., Shareholder Derivative Complaints In May 2019, a putative shareholder filed an action derivatively and on behalf of the Company naming James L. Welch, Jamie G. Pierson, Stephanie D. Fisher, Raymond J. Bromark, Douglas A. Carty, William R. Davidson, Matthew A. Doheny, Robert L. Friedman, James E. Hoffman, Michael J. Kneeland, Patricia M. Nazemetz, and James F. Winestock individually as defendants and the Company as the nominal defendant. In an amended complaint, filed on October 15, 2019, Darren D. Hawkins was added as a defendant. The case is captioned Hastey v. Welch, et al. In October 2019, another putative shareholder filed an action derivatively and on behalf of the Company in the United States District Court for the District of Delaware naming the same defendants as did the October 15, 2019 amended complaint in the Hastey Broughton v. Hawkins, et al. Hastey Broughton 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions On June 11, 2018, the Company entered into an agreement with James L. Welch, who was then serving as Chief Executive Officer and as a member of the Board, for him to provide consulting services to the Company as part of its succession plan for the Chief Executive Officer role. The consulting agreement became effective on August 1, 2018, immediately following Mr. Welch’s July 31, 2018 retirement, and terminated on July 31, 2019. Mr. Welch was paid $150,000 per annum as an independent contractor for his services, receiving $87,500 for consulting services performed during 2019 and $62,500 for consulting services performed in 2018. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events On February 14, 2020, we closed on a real estate sale of a Regional Transportation facility. The sale generated $43.6 million in net cash proceeds, of which we retained $25.2 million. We have now received all $40.0 million in real estate proceeds that are not subject to mandatory prepayment under the New Term Loan. Our first quarter operating income results will reflect a $38.8 million property gain. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of YRC Worldwide and its wholly owned subsidiaries. All significant 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. |
Use of Estimates | Use of Estimates Management makes estimates and assumptions when preparing the financial statements in conformity with U.S. generally accepted accounting principles which affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include demand deposits and highly liquid investments purchased with maturities of three months or less. Under the Company’s cash management system, checks issued but not presented to banks frequently result in book overdraft balances for accounting purposes which are classified within accounts payable in the accompanying consolidated balance sheets. The change in book overdrafts are reported as a component of operating cash flows for accounts payable as they do not represent bank overdrafts. |
Concentration of Credit Risks and Other | Concentration of Credit Risks and Other We sell services and extend credit based on an evaluation of the customer’s financial condition, without requiring collateral. Exposure to losses on receivables is principally dependent on each customer’s financial condition. We monitor our exposure for credit losses and maintain allowances for anticipated losses. At December 31, 2019, approximately 79% of our labor force is subject to collective bargaining agreements. In 2019, we agreed to a new labor agreement that, among other things, extend the expiration date of our primary labor agreement from March 31, 2019 to March 31, 2024. This also updated the contribution rates under our multi-employer pension plan. The new agreement provided for wage and benefits increases through the term of the agreement. Finally, the new agreement provided for certain changes to work rules and our use of purchased transportation in certain situations. |
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. We record an allowance for doubtful accounts primarily based on historical uncollectible amounts. We also take into account known factors surrounding specific customers and overall collection trends. 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. Our process involves performing ongoing credit evaluations of customers, including the market in which they operate and the overall economic conditions. We continually review historical trends and customer specific factors and make adjustments to the allowance for doubtful accounts as appropriate. Our allowance for doubtful accounts totaled $11.4 million and $11.1 million as of December 31, 2019 and 2018, respectively. 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 subsequent periods. At December 31, 2019 and 2018, our financial statements included a rerate reserve as a reduction to “Accounts Receivable” of $7.9 million and $12.5 million, respectively. 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. At December 31, 2019 and 2018, our financial statements included deferred revenue as a reduction to “Accounts Receivable” of $25.2 million and $25.7 million, respectively. Beginning January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers Revenue Disaggregation We considered the disclosure requirements for revenue disaggregation guidance in ASC Topic 606, Revenue from Contracts with Customers YRC Freight segment (in millions) 2019 2018 LTL revenue $ 2,841.0 $ 2,948.1 Other revenue 247.7 249.2 Total revenue 3,088.7 3,197.3 Regional Transportation segment (in millions) 2019 2018 LTL revenue $ 1,653.0 $ 1,742.5 Other revenue 129.7 152.5 Total revenue 1,782.7 1,895.0 Consolidated (in millions) 2019 2018 LTL revenue $ 4,494.0 $ 4,690.6 Other revenue 377.2 401.4 Total revenue 4,871.2 5,092.0 |
Self-Insurance Accruals for Claims | Self-Insurance Accruals for Claims Claims and insurance accruals, both current and long-term, reflect the estimated settlement cost of claims for workers’ compensation, property damage and liability claims (also referred to as third-party liability claims), and cargo loss and damage that insurance does not cover. We establish and modify reserve estimates for workers’ compensation and property damage and liability claims primarily based upon actuarial analyses prepared by independent actuaries. These reserves are discounted to present value using a risk-free rate based on the year of occurrence. The risk-free rate is the U.S. Treasury rate for maturities that match the expected payout of such claims and was 2.0%, 2.6% and 1.5% for workers’ compensation claims incurred as of December 31, 2019, 2018 and 2017, respectively. The rate was 2.1%, 2.5% and 1.3% for property damage and liability claims incurred as of December 31, 2019, 2018 and 2017, respectively. The process of determining reserve requirements utilizes historical trends and involves an evaluation of accident frequency and severity, claims management, changes in health care costs and certain future administrative costs. The effect of future inflation for costs is considered in the actuarial analysis. Adjustments to previously established reserves are included in operating results in the year of adjustment. Expected aggregate undiscounted amounts and material changes to these amounts related to workers’ compensation and property damage and liability claims as of December 31 are presented below: (in millions) Workers’ Compensation Third-Party Liability Claims Total Undiscounted amount at December 31, 2017 $ 299.3 $ 70.5 $ 369.8 Estimated settlement cost for 2018 claims 95.9 40.0 135.9 Claim payments, net of recoveries (92.4 ) (36.2 ) (128.6 ) Change in estimated settlement cost for prior claim years (15.0 ) (0.7 ) (15.7 ) Undiscounted settlement cost estimate at December 31, 2018 $ 287.8 $ 73.6 $ 361.4 Estimated settlement cost for 2019 claims 103.3 35.2 138.5 Claim payments, net of recoveries (95.9 ) (36.1 ) (132.0 ) Change in estimated settlement cost for prior claim years (9.6 ) 1.1 (8.5 ) Undiscounted settlement cost estimate at December 31, 2019 $ 285.6 $ 73.8 $ 359.4 Discounted settlement cost estimate at December 31, 2019 $ 262.2 $ 73.4 $ 335.6 In addition to the amounts above, accrued settlement cost amounts for cargo claims and other insurance related amounts, none of which are discounted, totaled $13.7 million and $13.9 million at December 31, 2019 and 2018, respectively. Estimated cash payments to settle claims which were incurred on or before December 31, 2019, for the next five years and thereafter are as follows: (in millions) Workers’ Compensation Third-Party Liability Claims Total 2020 $ 78.3 $ 33.5 $ 111.8 2021 50.1 17.9 68.0 2022 33.3 11.4 44.7 2023 22.0 5.8 27.8 2024 16.4 2.6 19.0 Thereafter 85.5 2.6 88.1 Total $ 285.6 $ 73.8 $ 359.4 |
Equity-Based Compensation | Equity-Based Compensation We have various equity-based employee compensation plans, which are described more fully in the “Equity-Based Compensation Plans” footnote to our consolidated financial statements. We recognize compensation costs for non-vested shares based on the grant date fair value. For our equity grants, with no performance requirement, we recognize compensation cost on a straight-line basis over the requisite service period (generally three years) based on the grant-date fair value. For our performance-based awards, the Company expenses the grant date fair value of the awards which are probable of being earned in the performance period over the respective service period. |
Property and Equipment | Property and Equipment The following is a summary of the components of our property and equipment at cost as of December 31: (in millions) 2019 2018 Land $ 239.9 $ 243.7 Structures 788.4 791.3 Revenue equipment 1,228.2 1,257.4 Technology equipment and software 291.7 259.7 Other (a) 213.4 213.8 Total property and equipment, at cost $ 2,761.6 $ 2,765.9 (a) Other consists of miscellaneous equipment used in field operations. We carry property and equipment at cost less accumulated depreciation. We compute depreciation using the straight-line method based on the following service lives: Years Structures 10 - 30 Revenue equipment 10 - 20 Technology equipment and software 3 - 7 Other 3 - 10 We charge maintenance and repairs to expense as incurred and betterments are capitalized. The cost of replacement tires is expensed at the time those tires are placed into service, as is the case with other repair and maintenance costs. Leasehold improvements are capitalized and amortized over the shorter of their useful lives or the remaining lease term. In addition to purchasing new revenue equipment, we also rebuild the engines of our tractors (at certain time or mile intervals). Because rebuilding an engine increases its useful life, we capitalize these costs and depreciate over the remaining useful life of the unit. The cost of engines on newly acquired revenue equipment is capitalized and depreciated over the estimated useful life of the related equipment. Our investment in technology equipment and software consists primarily of freight movement, automation, administrative, and related software. The Company capitalizes certain costs associated with developing or obtaining internal-use software. Capitalizable costs include external direct costs of materials and services utilized in developing or obtaining the software and payroll and payroll-related costs for employees directly associated with the development of the project. For the years ended December 31, 2019, 2018 and 2017, depreciation expense was $150.5 million, $145.9 million and $147.7 million, respectively. Long-lived assets are reviewed for impairment when events or circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying value of the long-lived assets, the carrying value would be reduced to the estimated fair value. Future cash flow estimates for an impairment review would be based on the lowest level of identifiable cash flows, which are at the operating company level. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments From time to time, we hold financial assets held at fair value, which consists of restricted cash held in escrow. Restricted amounts held in escrow are invested in money market accounts and are recorded at fair value based on quoted market prices and have typically been level 1 fair value assets. Assets are considered level 1 if their valuations are based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. As of December 31, 2019 and 2018, we had no restricted amounts held in escrow. The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximates their fair value due to the short-term nature of these instruments. The fair value of our long-term debt is included in the “Debt and Financing” footnote to the consolidated financial statements. |
Newly Adopted Accounting Standards and Impact of Recently Issued Accounting Standards | Newly-Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases The Company elected 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 did not elect the hindsight method practical expedient which would have allowed us to reassess lease terms and impairment. For leases with a term of twelve months or less, the Company has made an accounting policy election in which the right of use lease (“ROU”) asset and lease liability will not be recognized on the consolidated balance sheet. The Company does not separate lease and non-lease components for its revenue equipment and real property leases. The Company reassessed the accounting for debt financing obligations under the new standard and determined the historical accounting remained appropriate under the new standard. The adoption of this standard impacted our consolidated balance sheet through the recognition of $378.8 million in ROU assets and liabilities as of January 1, 2019. Lease deposits in the amount of $25.4 million were reclassified from “Other assets” to a reduction of “Operating lease liabilities” per the consolidated balance sheet upon adoption of the new standard. The new standard did not impact the calculation of our financial covenants defined under the terms of our credit agreements. See the “Leases” footnote to the consolidated financial statements for additional information. Impact of Recently-Issued Accounting Standards In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses . The Company does not expect this standard to have a material impact on our financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software , that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted this standard on January 1, 2020, but the adoption is not expected to have a material impact on the Company’s consolidated financial statements during 2020. In December 2019, the FASB issued ASU 2019-12, Income Taxes. ginning after December 15, 2020, . The Company does not expect this standard to have a material impact on our financial statements. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Disaggregation of Revenue | The following table presents disaggregated revenue by revenue source between LTL shipments and total. LTL shipments are defined as shipments less than 10,000 pounds. Beginning in 2019, the Company disaggregated revenue for reporting of key operating metrics, including volume and yield metrics, due to the impacts from shipments over 10,000 pounds. YRC Freight segment (in millions) 2019 2018 LTL revenue $ 2,841.0 $ 2,948.1 Other revenue 247.7 249.2 Total revenue 3,088.7 3,197.3 Regional Transportation segment (in millions) 2019 2018 LTL revenue $ 1,653.0 $ 1,742.5 Other revenue 129.7 152.5 Total revenue 1,782.7 1,895.0 Consolidated (in millions) 2019 2018 LTL revenue $ 4,494.0 $ 4,690.6 Other revenue 377.2 401.4 Total revenue 4,871.2 5,092.0 |
Schedule of Undiscounted Amounts and Material Changes in Insurance Claims | Expected aggregate undiscounted amounts and material changes to these amounts related to workers’ compensation and property damage and liability claims as of December 31 are presented below: (in millions) Workers’ Compensation Third-Party Liability Claims Total Undiscounted amount at December 31, 2017 $ 299.3 $ 70.5 $ 369.8 Estimated settlement cost for 2018 claims 95.9 40.0 135.9 Claim payments, net of recoveries (92.4 ) (36.2 ) (128.6 ) Change in estimated settlement cost for prior claim years (15.0 ) (0.7 ) (15.7 ) Undiscounted settlement cost estimate at December 31, 2018 $ 287.8 $ 73.6 $ 361.4 Estimated settlement cost for 2019 claims 103.3 35.2 138.5 Claim payments, net of recoveries (95.9 ) (36.1 ) (132.0 ) Change in estimated settlement cost for prior claim years (9.6 ) 1.1 (8.5 ) Undiscounted settlement cost estimate at December 31, 2019 $ 285.6 $ 73.8 $ 359.4 Discounted settlement cost estimate at December 31, 2019 $ 262.2 $ 73.4 $ 335.6 |
Schedule of Estimated Cash Payments to Settle Claims | Estimated cash payments to settle claims which were incurred on or before December 31, 2019, for the next five years and thereafter are as follows: (in millions) Workers’ Compensation Third-Party Liability Claims Total 2020 $ 78.3 $ 33.5 $ 111.8 2021 50.1 17.9 68.0 2022 33.3 11.4 44.7 2023 22.0 5.8 27.8 2024 16.4 2.6 19.0 Thereafter 85.5 2.6 88.1 Total $ 285.6 $ 73.8 $ 359.4 |
Summary of Components of Property and Equipment | The following is a summary of the components of our property and equipment at cost as of December 31: (in millions) 2019 2018 Land $ 239.9 $ 243.7 Structures 788.4 791.3 Revenue equipment 1,228.2 1,257.4 Technology equipment and software 291.7 259.7 Other (a) 213.4 213.8 Total property and equipment, at cost $ 2,761.6 $ 2,765.9 (a) Other consists of miscellaneous equipment used in field operations. |
Schedule of Service Lives for Property and Equipment | We carry property and equipment at cost less accumulated depreciation. We compute depreciation using the straight-line method based on the following service lives: Years Structures 10 - 30 Revenue equipment 10 - 20 Technology equipment and software 3 - 7 Other 3 - 10 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Primary Components of Other Assets | The primary components of Other assets at December 31 are as follows: (in millions) 2019 2018 Intangible assets $ 15.0 $ 25.2 Prepayments (a) 1.4 18.0 Other (b) 40.1 21.2 Total $ 56.5 $ 64.4 (a) Prepayments for 2018 primarily consist of prepaid costs for revenue equipment leases, which were reclassed in 2019 after the adoption of ASU 2016-02, Leases (b) Other includes insurance receivables (which are offset by amounts to be paid for claims in excess of self-insured retention), net pension assets, long-term deposits and other immaterial assets of varying types. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Reconciliation of the Beginning and Ending Balances of Projected Benefit Obligation and Fair Value of Plan Assets | The reconciliation of the beginning and ending balances of the projected benefit obligation and the fair value of plan assets for the years ended December 31, 2019 and 2018, and the funded status at December 31, 2019 and 2018, is as follows: (in millions) 2019 2018 Change in benefit obligation: Benefit obligation at beginning of year $ 1,073.2 $ 1,228.4 Interest cost 45.7 44.1 Benefits paid (96.7 ) (110.4 ) Actuarial (gain) loss 106.5 (88.5 ) Other 0.1 (0.4 ) Benefit obligation at year end $ 1,128.8 $ 1,073.2 Change in plan assets: Fair value of plan assets at prior year end $ 874.9 $ 998.3 Actual return on plan assets 112.1 (27.8 ) Employer contributions 9.7 15.2 Benefits paid (96.7 ) (110.4 ) Other — (0.4 ) Fair value of plan assets at year end $ 900.0 $ 874.9 Funded status at year end $ (228.8 ) $ (198.3 ) |
Amounts Recognized for Pension Benefits | Amounts recognized in the consolidated balance sheets for pension benefits at December 31 are as follows: (in millions) 2019 2018 Noncurrent assets $ 6.1 $ 2.7 Current liabilities 1.0 0.8 Noncurrent liabilities 233.9 200.2 |
Amounts Recognized in Accumulated Other Comprehensive Loss | Amounts recognized in accumulated other comprehensive loss at December 31 consist of: (in millions) 2019 2018 Net actuarial loss $ 406.1 $ 368.9 Net prior service credit (9.8 ) (10.3 ) Total $ 396.3 $ 358.6 |
Information for Pension Plans with ABO in Excess of Plan Assets | Information for pension plans with an accumulated benefit obligation (“ABO”) in excess of plan assets and plan assets that exceed ABO at December 31, 2019 and 2018 is as follows: At December 31, 2019 (in millions) ABO Exceeds Assets Assets Exceed ABO Total Projected benefit obligation $ 960.9 $ 167.9 $ 1,128.8 Accumulated benefit obligation 960.9 167.9 1,128.8 Fair value of plan assets 726.0 174.0 900.0 At December 31, 2018 (in millions) ABO Exceeds Assets Assets Exceed ABO Total Projected benefit obligation $ 927.6 $ 145.6 $ 1,073.2 Accumulated benefit obligation 927.6 145.6 1,073.2 Fair value of plan assets 726.6 148.3 874.9 |
Schedule of Assumptions Used | Weighted average actuarial assumptions used to determine benefit obligations at December 31: 2019 2018 Discount rate 3.56 % 4.44 % Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31: 2019 2018 2017 Discount rate 4.44 % 3.77 % 4.27 % Expected rate of return on assets 7.0 % 7.0 % 7.0 % Mortality table (a) Pri-2012 (MP-2019 Scale, Custom) RP-2014 (MP-2016 Scale, Custom) RP-2014 (MP-2016 Scale, Custom) (a) The 2019, 2018 and 2017 mortality tables were based on a custom mortality improvement scale to reflect expectations of underlying plan participants. |
Schedule of Asset Allocation and Targeted Long Term Asset Allocation | Our asset allocation as of December 31, 2019 and 2018, and targeted long-term asset allocation for the plans are as follows: 2019 2018 Target Equities 33.0 % 39.0 % 38.0 % Debt Securities 30.0 % 24.0 % 30.0 % Absolute Return 37.0 % 37.0 % 32.0 % |
Schedule of Expected Benefit Payments | Expected benefit payments from our qualified and non-qualified defined benefit pension plans for each of the next five years and the total benefit payments for the following five years ended December 31 are as follows: (in millions) 2020 2021 2022 2023 2024 2025-2029 Expected benefit payments $ 89.4 $ 85.8 $ 84.3 $ 80.6 $ 80.1 $ 370.1 |
Schedule of Costs of Retirement Plans | The components of our net periodic pension cost, other post-retirement costs and other amounts recognized in other comprehensive loss (income) for the years ended December 31, 2019, 2018 and 2017 were as follows: (in millions) 2019 2018 2017 Net periodic benefit cost: Service cost $ — $ — $ 5.4 Interest cost 45.7 44.1 51.1 Expected return on plan assets (57.3 ) (60.0 ) (59.3 ) Amortization of prior net losses 12.8 14.6 15.5 Amortization of prior net service credit (0.4 ) (0.4 ) — Settlement adjustment 1.8 10.9 7.6 Net periodic pension cost $ 2.6 $ 9.2 $ 20.3 Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income): Net actuarial gains (losses) and other adjustments $ 51.9 $ (0.9 ) $ (43.7 ) Net prior service credit — — (10.7 ) Settlement adjustment (1.8 ) (10.9 ) (7.6 ) Amortization of prior net losses (12.8 ) (14.6 ) (15.5 ) Amortization of prior net service credit 0.4 0.4 — Total recognized in other comprehensive loss (income) 37.7 (26.0 ) (77.5 ) Total recognized in net periodic benefit cost and other comprehensive loss (income) $ 40.3 $ (16.8 ) $ (57.2 ) |
Pension Assets at Fair Value | The tables below detail by level, within the fair value hierarchy, the pension assets at fair value as of December 31, 2019 and December 31, 2018: Pension Assets at Fair Value as of December 31, 2019 (in millions) Total Level 1 Level 2 Level 3 Equities $ 67.0 $ 66.6 $ 0.4 $ — Private equities 36.4 — — 36.4 Fixed income: Corporate and other 29.0 2.2 18.4 8.4 Government 204.2 53.3 150.9 — Interest bearing 27.2 15.0 12.2 — Investments measured at NAV (a) 536.2 Total plan assets $ 900.0 $ 137.1 $ 181.9 $ 44.8 Pension Assets at Fair Value as of December 31, 2018 (in millions) Total Level 1 Level 2 Level 3 Equities $ 67.7 $ 65.5 $ 2.2 $ — Private equities 43.4 — — 43.4 Fixed income: Corporate and other 24.8 7.7 16.2 0.9 Government 177.1 67.2 109.9 — Interest bearing 25.1 (10.5 ) 35.6 — Investments measured at NAV (a) 536.8 Total plan assets $ 874.9 $ 129.9 $ 163.9 $ 44.3 (a) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. |
Assets Measured at Fair Value on a Recurring Basis (Level 3) | The table below presents the activity of our assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3): (in millions) Private Equities Fixed income Total Level 3 Balance at December 31, 2017 $ 46.6 $ 6.0 $ 52.6 Purchases — 0.6 0.6 Sales (0.3 ) — (0.3 ) Unrealized losses (2.9 ) (5.7 ) (8.6 ) Balance at December 31, 2018 $ 43.4 $ 0.9 $ 44.3 Purchases — 8.1 8.1 Sales (16.7 ) (0.8 ) (17.5 ) Realized gains 1.9 — 1.9 Unrealized gains 7.8 0.2 8.0 Balance at December 31, 2019 $ 36.4 $ 8.4 $ 44.8 |
Level 3 Assets Using NAV | The following table sets forth a summary of the assets for which a reported NAV is used to estimate the fair value as of December 31, 2019: Fair value estimated using Net Asset Value per Share (in millions) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Private equities (a) $ 127.0 $ 1.7 Redemptions not permitted Fixed income (b) 231.4 4.1 Redemptions not permitted Equities (c) 81.9 — Daily, Monthly 0-30 days Absolute return (d) 95.9 — Monthly, Quarterly 3-75 days Total $ 536.2 (a) Consists of private equity investments in pharmaceuticals and companies primarily in the technology and healthcare sectors. (b) Primarily consists of investments in royalty payments from marketers of pharmaceuticals and related debt securities. (c) Consists of public equity investments in U.S. and non-U.S. markets. (d) Consists of investments in global markets, including derivative securities of equity and fixed income indexes, commodities and interest rates. The following table sets forth a summary of the assets for which a reported NAV is used to estimate the fair value as of December 31, 2018: Fair value estimated using Net Asset Value per Share (in millions) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Private equities (a) $ 155.2 $ 2.8 Redemptions not permitted Fixed income (b) 189.2 0.5 Redemptions not permitted Equities (c) 84.0 — Monthly 3-30 days Absolute return (d) 108.4 — Monthly, Quarterly 2-45 days Total $ 536.8 (a) Consists of private equity investments in pharmaceuticals and companies primarily in the technology and healthcare sectors. (b) Primarily consists of investments in royalty payments from marketers of pharmaceuticals and related debt securities. (c) Consists of public equity investments in U.S. and non-U.S. markets. (d) Consists of investments in global markets, including derivative securities of equity and fixed income indexes, commodities and interest rates. |
Schedule of Multiemployer Plans | We expensed the following amounts related to these plans for the years ended December 31: (in millions) 2019 2018 2017 Health and welfare $ 503.5 $ 499.3 $ 482.6 Pension 127.6 115.5 98.1 Total $ 631.1 $ 614.8 $ 580.7 The following table provides additional information related to our participation in individually significant multi-employer pension plans for the year ended December 31, 2019: Expiration Date Funding of Collective- Pension Protection Zone Status (b) Improvement or Employer Bargaining Pension Fund (a) EIN Number 2019 2018 Rehabilitation Plan Surcharge Imposed Agreement Central States, Southeast and Southwest Areas Pension Fund 36-6044243 Critical and Declining Critical and Declining Yes No 3/31/2024 Teamsters National 401(k) Savings Plan (c) 52-1967784 N/A N/A N/A No 3/31/2024 Road Carriers Local 707 Pension Fund 51-6106510 Critical and Declining Critical and Declining Yes No 3/31/2024 Teamsters Local 641 Pension Fund 22-6220288 Critical and Declining Critical and Declining Yes No 3/31/2024 (a) The determination of individually significant multi-employer plans is based on our contributions to the plans relative to our total contributions over the periods presented, as well as our contributions to the plans relative to the total contributions that the individual plans received during the periods presented. (b) The Pension Protection Zone Status indicated herein is based on information that the Company obtained from the plans’ Forms 5500. Unless otherwise noted, the most recent PPA zone status available for 2019 and 2018 is for the plan’s year-end during calendar years 2018 and 2017, respectively. Among other factors, plans in the critical or critical and declining zone are generally less than 65 percent funded, plans in the endangered zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. (c) The policies of the Western Conference of Teamsters Pension Trust precluded the Company from reentering the plan on June 1, 2011. The plan did not assess a withdrawal liability and has not done so since June 1, 2011. Contributions related to the employees previously covered by this plan are now being made to the Teamsters National 401(k) Plan. |
Pension Amounts Contributed by Fund | The following table provides the pension amounts contributed by fund for those funds that are considered to be individually significant: (in millions) 2019 2018 2017 Central States, Southeast and Southwest Areas Pension Plan $ 77.7 $ 70.7 $ 58.8 Teamsters National 401(k) Savings Plan 19.0 14.7 13.1 Road Carriers Local 707 Pension Fund 2.5 2.2 2.2 Teamsters Local 641 Pension Fund 2.1 1.8 1.5 |
Debt and Financing (Tables)
Debt and Financing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | Our outstanding debt as of December 31, 2019 and December 31, 2018 consisted of the following: As of December 31, 2019 (in millions) Par Value Discount Debt Issuance Costs Book Value Effective Interest Rate New Term Loan $ 600.0 $ (28.1 ) $ (12.0 ) $ 559.9 (a) 10.5 % ABL Facility — — — — Secured Second A&R CDA 26.0 — (0.1 ) 25.9 7.9 % Unsecured Second A&R CDA 45.2 — (0.1 ) 45.1 7.9 % Lease financing obligations 231.6 — (0.3 ) 231.3 16.5 % Total debt $ 902.8 $ (28.1 ) $ (12.5 ) $ 862.2 Current maturities of Unsecured Second A&R CDA (1.4 ) — — (1.4 ) Current maturities of lease financing obligations (2.7 ) — — (2.7 ) Long-term debt $ 898.7 $ (28.1 ) $ (12.5 ) $ 858.1 As of December 31, 2018 (in millions) Par Value Discount Debt Issuance Costs Book Value Effective Interest Rate Prior Term Loan $ 573.7 $ (7.8 ) $ (6.5 ) $ 559.4 (b) 11.4 % ABL Facility — — — — Secured Second A&R CDA 26.9 — (0.1 ) 26.8 7.9 % Unsecured Second A&R CDA 46.7 — (0.2 ) 46.5 7.9 % Lease financing obligations 242.7 — (0.5 ) 242.2 14.9 % Total debt $ 890.0 $ (7.8 ) $ (7.3 ) $ 874.9 Current maturities of Term Loan (14.2 ) — — (14.2 ) Current maturities of Unsecured Second A&R CDA (1.5 ) — — (1.5 ) Current maturities of lease financing obligations (5.0 ) — — (5.0 ) Long-term debt $ 869.3 $ (7.8 ) $ (7.3 ) $ 854.2 (a) As of December 31, 2019, the stated interest rate represented a variable interest rate of 1, 3 or 6-month LIBOR, with a floor of 1.0% plus a fixed margin of 7.50%. (b) As of December 31, 2018, the stated interest rate represented 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 Maturities of Long-term Debt | The principal maturities over the next five years and thereafter of total debt as of December 31, 2019 was as follows: (in millions) Term Loan ABL Facility Second A&R CDA Lease Financing Obligations (a) Total 2020 $ — $ — $ 1.4 $ 2.5 $ 3.9 2021 — — 1.4 2.3 3.7 2022 — — 68.4 3.2 71.6 2023 — — — 3.9 3.9 2024 600.0 — — 1.9 601.9 Thereafter — — — 217.8 217.8 Total $ 600.0 $ — $ 71.2 $ 231.6 $ 902.8 (a) Lease financing obligations subsequent to 2024 of $217.8 million consist primarily of interest payments. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The book value and estimated fair values of our long-term debt, including current maturities and other financial instruments, are summarized as follows: December 31, 2019 December 31, 2018 (in millions) Book Value Fair Value Book Value Fair Value Prior Term Loan $ — $ — $ 559.4 $ 546.0 New Term Loan 559.9 559.3 — — ABL Facility — — — — Lease financing obligations 231.3 233.7 242.2 234.7 Second A&R CDA 71.0 71.7 73.3 70.0 Total debt $ 862.2 $ 864.7 $ 874.9 $ 850.7 |
Schedule of Cash and Cash Equivalents and Managed Accessibility | The table below summarizes cash and cash equivalents and Managed Accessibility for the years ended December 31: (in millions) 2019 2018 Cash and cash equivalents 109.2 227.6 Less: amounts placed into restricted cash subsequent to year-end (29.0 ) (25.0 ) Managed Accessibility 0.2 1.2 Total cash and cash equivalents and Managed Accessibility $ 80.4 $ 203.8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Assets and Liabilities | Leases (in millions) Classification 2019 Assets Operating lease assets Operating lease right-of-use assets $ 386.0 Finance lease assets Net property and equipment 2.6 Total leased assets $ 388.6 Liabilities Current Operating Current operating lease liabilities $ 120.8 Finance Other current and accrued liabilities 0.2 Noncurrent Operating Operating lease liabilities 246.3 Finance Claims and other liabilities 3.3 Total lease liabilities $ 370.6 |
Summary of Lease Cost | Lease Cost (in millions) Classification Year Ended December 31, 2019 Operating lease cost (a) Purchased transportation; Fuel, operating expenses and supplies $ 168.0 Short-term cost Purchased transportation; Fuel, operating expenses and supplies 14.2 Variable lease cost Purchased transportation; Fuel, operating expenses and supplies 5.9 Finance lease cost Amortization of leased assets Depreciation and amortization 0.4 Interest on lease liabilities Interest expense 0.5 Total lease cost $ 189.0 (a) Operating lease cost represent non-cash amortization of ROU assets and accretion of the discounted lease liabilities and is segregated on the statement of consolidated cash flows. |
Summary of Remaining Maturities of Lease Liabilities | Remaining Maturities of Lease Liabilities Operating Leases Finance Leases Total 2020 $ 154.4 $ 0.6 $ 155.0 2021 128.9 0.6 129.5 2022 77.8 0.6 78.4 2023 41.1 0.6 41.7 2024 16.3 0.7 17.0 After 2024 32.6 3.4 36.0 Total lease payments $ 451.1 $ 6.5 $ 457.6 Less: Interest 84.0 3.0 87.0 Present value of lease liabilities $ 367.1 $ 3.5 $ 370.6 |
Summary of Lease Term and Discount Rate | Lease Term and Discount Rate (years and percent) Weighted-Average Remaining Lease Term Weighted-Average Discount Rate Operating leases 3.7 11.0% Finance leases 9.8 11.3% |
Summary of Supplemental Cash Flow Information | Other Information (in millions) Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 154.6 Operating cash flows from finance leases 0.5 Financing cash flows from finance leases 0.3 Leased assets obtained in exchange for new operating lease liabilities $ 129.7 |
Summary of Contractual Cash Obligation | Below is the Company’s contractual cash obligation table as of December 31, 2018, that disclosed operating lease payments for the next five years and thereafter. We had no material capital leases as of December 31, 2018. Payments Due by Period (in millions) Total Less than 1 year 1-3 years 3-5 years After 5 years Operating leases $ 429.2 $ 138.4 $ 212.0 $ 63.3 $ 15.5 |
Equity-Based Compensation Pla_2
Equity-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Performance-Based Unvested Stock Unit and Performance-Based Unvested Stock Unit | A summary of the 2019 performance-based unvested stock and performance-based unvested stock unit awards are presented in the following table: Shares/units (in thousands) Weighted Average Grant-Date Fair Value Unvested at December 31, 2018 — $ — Granted 2,927 $ 2.59 Forfeited (642 ) $ 3.20 Unvested at December 31, 2019 2,285 $ 2.42 |
Summary of Performance-Based Unvested Stock Unit Activity | A summary of performance-based unvested stock unit activity is as follows: Units (in thousands) Weighted Average Grant-Date Fair Value Unvested at December 31, 2016 261 $ 17.98 Vested (141 ) 17.90 Forfeited (6 ) 18.23 Unvested at December 31, 2017 114 $ 18.06 Vested (114 ) 18.06 Forfeited — — Unvested at December 31, 2018 — $ — Vested — — Forfeited — — Unvested at December 31, 2019 — $ — |
Summary of Activity of Unvested Restricted Stock and Stock Unit Awards | A summary of the activity of our unvested restricted stock and stock unit awards are presented in the following table: Shares/units (in thousands) Weighted Average Grant-Date Fair Value Unvested at December 31, 2016 1,175 $ 11.30 Granted 496 12.43 Vested and distributed (306 ) 11.91 Forfeited (58 ) 12.28 Unvested at December 31, 2017 1,307 $ 11.55 Granted 730 9.35 Vested and distributed (457 ) 10.91 Forfeited (164 ) 11.31 Unvested at December 31, 2018 1,416 $ 10.65 Granted 437 5.39 Vested and distributed (779 ) 9.16 Forfeited (81 ) 10.74 Unvested at December 31, 2019 993 $ 9.50 |
Summary of Vesting Provisions for Restricted Stock and Stock Unit Awards | The vesting provisions for the restricted stock and stock unit awards and the related number of shares granted during the year ended December 31 are as follows: Shares/units (in thousands) Vesting Terms 2019 2018 2017 50% immediately and 50% on the 1 year anniversary of grant date 162 — — 100% immediately 186 132 106 33.3% per year for three years 89 452 85 100% on February 14, 2020 — — 305 100% on July 31, 2018 — 146 — Total restricted stock and stock units granted 437 730 496 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Liabilities (Assets) | Deferred tax liabilities (assets) were comprised of the following at December 31: (in millions) 2019 2018 Depreciation $ 99.5 $ 109.0 Right of use - leases 93.7 — Deferred revenue 6.3 9.3 Intangibles 3.4 6.0 State taxes 19.6 19.9 Other 16.0 15.2 Deferred tax liabilities 238.5 159.4 Claims and insurance (89.9 ) (84.8 ) Net operating loss carryforwards (210.7 ) (199.9 ) Employee benefit accruals (94.8 ) (88.9 ) Sale/leaseback transactions (55.5 ) (54.5 ) Lease liabilities (93.8 ) — Other (28.4 ) (20.6 ) Deferred tax assets (573.1 ) (448.7 ) Valuation allowance 334.0 291.1 Net deferred tax assets (239.1 ) (157.6 ) Net deferred tax (asset) liability $ (0.6 ) $ 1.8 |
Reconciliation between Federal Statutory Tax Rate and Consolidated Effective Tax Rate | A reconciliation between income taxes at the federal statutory rate and the consolidated effective tax rate follows: 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net (0.7 %) 14.1 % (2.8 )% Foreign tax rate differential (2.6 %) 12.1 % (10.0 )% Permanent differences (0.6 %) 8.3 % (8.9 )% Valuation allowance (17.7 )% (17.5 )% (48.6 )% Benefit from intraperiod tax allocation under ASC 740 — % — % 73.5 % Net change in unrecognized tax benefits 0.6 % (0.9 )% 0.5 % Other, net (primarily prior year return to provision) 4.0 % (1.6 )% 1.6 % Effective tax rate 4.0 % 35.5 % 40.3 % |
Summary of Income Tax Provision (Benefit) | The income tax provision (benefit) consisted of the following: (in millions) 2019 2018 2017 Current: Federal $ — $ — $ (0.9 ) State (3.3 ) 5.4 0.8 Foreign 2.0 6.8 6.0 Current income tax expense (benefit) (1.3 ) 12.2 5.9 Deferred: Federal — — (13.3 ) State — — — Foreign (3.0 ) (1.1 ) 0.1 Deferred income tax benefit (3.0 ) (1.1 ) (13.2 ) Income tax expense (benefit) (4.3 ) 11.1 (7.3 ) Based on the income (loss) before income taxes: Domestic (104.7 ) 13.6 (30.5 ) Foreign (3.6 ) 17.7 12.4 Income (Loss) before income taxes $ (108.3 ) $ 31.3 $ (18.1 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A rollforward of the total amount of unrecognized tax benefits for the years ended December 31 is as follows: (in millions) 2019 2018 Unrecognized tax benefits at January 1 $ 59.2 $ 56.8 Increases related to: Tax positions taken during a prior period — 7.1 Tax positions taken during the current period 0.5 0.4 Decreases related to: Tax positions taken during a prior period (0.1 ) (0.1 ) Lapse of applicable statute of limitations (1.1 ) (4.8 ) Settlements with taxing authorities — (0.2 ) Unrecognized tax benefits at December 31 $ 58.5 $ 59.2 |
Summary of Tax Years Remain Subject to Examination | Tax years that remain subject to examination for our major tax jurisdictions as of December 31, 2019: Statute remains open 2005-2018 Tax years currently under examination/exam completed 2005-2013 Tax years not examined 2014-2019 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Operations by Business Segment | The following table summarizes our operations by business segment: (in millions) YRC Freight Regional Transportation Corporate/ Eliminations Consolidated 2019 External revenue $ 3,088.7 $ 1,782.7 $ (0.2 ) $ 4,871.2 Operating income (loss) 38.3 (4.8 ) (17.3 ) 16.2 Identifiable assets 1,317.0 746.6 (232.0 ) 1,831.6 Acquisition of property and equipment (89.6 ) (45.5 ) (8.1 ) (143.2 ) Proceeds from disposal of property and equipment 14.1 11.8 — 25.9 Depreciation and amortization 86.5 64.6 1.3 152.4 2018 External revenue $ 3,197.3 $ 1,895.0 $ (0.3 ) $ 5,092.0 Operating income (loss) 85.0 70.7 (12.8 ) 142.9 Identifiable assets 973.6 626.4 17.1 1,617.1 Acquisition of property and equipment (76.5 ) (62.9 ) (6.0 ) (145.4 ) Proceeds from disposal of property and equipment 35.8 0.6 — 36.4 Depreciation and amortization 82.2 65.0 0.5 147.7 2017 External revenue $ 3,067.9 $ 1,823.4 $ (0.3 ) $ 4,891.0 Operating income (loss) 60.7 67.9 (9.6 ) 119.0 Identifiable assets 1,042.1 607.4 (64.0 ) 1,585.5 Acquisition of property and equipment (66.6 ) (36.6 ) (0.1 ) (103.3 ) Proceeds from disposal of property and equipment 8.1 0.7 — 8.8 Depreciation and amortization 84.8 62.9 — 147.7 |
Shareholders' Deficit (Tables)
Shareholders' Deficit (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Schedule of Activity in Shares of Common Stock | The following reflects the activity in the shares of our common stock for the years ended December 31: Common Shares (in thousands) 2019 2018 2017 Beginning balance 33,090 32,733 32,473 Issuance of equity awards, net 625 357 260 Ending balance 33,715 33,090 32,733 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Dilutive Earnings (Loss) Per Share | Our calculations for basic and dilutive earnings (loss) per share for the years ended December 31, 2019, 2018, and 2017 are as follows: (dollars in millions, except per share data, shares and stock units in thousands) 2019 2018 2017 Basic and dilutive net income (loss) $ (104.0 ) $ 20.2 $ (10.8 ) Basic weighted average shares outstanding 33,252 32,983 32,685 Effect of dilutive securities: Unvested shares and stocks units (a) — 876 — Dilutive weighted average shares outstanding 33,252 33,859 32,685 Basic earnings (loss) per share (b) $ (3.13 ) $ 0.61 $ (0.33 ) Diluted earnings (loss) per share (b) $ (3.13 ) $ 0.60 $ (0.33 ) (a) (b) |
Schedule of Antidilutive Securities | Our anti-dilutive securities for the years ended December 31 are as follows: (shares in thousands) 2019 2018 2017 Anti-dilutive unvested shares and options 610 51 8 |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Line items] | |||
Allowance for doubtful accounts | $ 11,400,000 | $ 11,100,000 | |
Rerate reserve as a reduction to accounts receivable | 7,900,000 | 12,500,000 | |
Deferred revenue | $ 25,200,000 | $ 25,700,000 | |
Risk-free rate for maturities of workers' compensation claims | 2.00% | 2.60% | 1.50% |
Risk-free rate for property damage and liability claims | 2.10% | 2.50% | 1.30% |
Depreciation | $ 150,500,000 | $ 145,900,000 | $ 147,700,000 |
Restricted amounts held in escrow-current | 0 | 0 | |
Cargo Claims And Other Insurance Related Amounts | |||
Accounting Policies [Line items] | |||
Undiscounted amount | $ 13,700,000 | $ 13,900,000 | |
Workforce Subject to Collective Bargaining Arrangements | Labor Force Concentration Risk | |||
Accounting Policies [Line items] | |||
Percentage of workforce subject to collective bargaining agreements | 79.00% |
Accounting Policies - Disaggreg
Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||
Revenue | $ 4,871.2 | $ 5,092 | $ 4,891 |
LTL revenue | |||
Revenue from External Customer [Line Items] | |||
Revenue | 4,494 | 4,690.6 | |
Other revenue | |||
Revenue from External Customer [Line Items] | |||
Revenue | 377.2 | 401.4 | |
Operating Segments | YRC Freight | |||
Revenue from External Customer [Line Items] | |||
Revenue | 3,088.7 | 3,197.3 | 3,067.9 |
Operating Segments | YRC Freight | LTL revenue | |||
Revenue from External Customer [Line Items] | |||
Revenue | 2,841 | 2,948.1 | |
Operating Segments | YRC Freight | Other revenue | |||
Revenue from External Customer [Line Items] | |||
Revenue | 247.7 | 249.2 | |
Operating Segments | Regional Transportation | |||
Revenue from External Customer [Line Items] | |||
Revenue | 1,782.7 | 1,895 | $ 1,823.4 |
Operating Segments | Regional Transportation | LTL revenue | |||
Revenue from External Customer [Line Items] | |||
Revenue | 1,653 | 1,742.5 | |
Operating Segments | Regional Transportation | Other revenue | |||
Revenue from External Customer [Line Items] | |||
Revenue | $ 129.7 | $ 152.5 |
Accounting Policies - Schedule
Accounting Policies - Schedule of Undiscounted Amounts and Material Changes in Insurance Claims (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
Undiscounted amount | $ 361.4 | $ 369.8 |
Estimated settlement cost | 138.5 | 135.9 |
Claim payments, net of recoveries | (132) | (128.6) |
Change in estimated settlement cost for prior claim years | (8.5) | (15.7) |
Undiscounted amount | 359.4 | 361.4 |
Discounted settlement cost estimate | 335.6 | |
Workers’ Compensation | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
Undiscounted amount | 287.8 | 299.3 |
Estimated settlement cost | 103.3 | 95.9 |
Claim payments, net of recoveries | (95.9) | (92.4) |
Change in estimated settlement cost for prior claim years | (9.6) | (15) |
Undiscounted amount | 285.6 | 287.8 |
Discounted settlement cost estimate | 262.2 | |
Third-Party Liability Claims | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
Undiscounted amount | 73.6 | 70.5 |
Estimated settlement cost | 35.2 | 40 |
Claim payments, net of recoveries | (36.1) | (36.2) |
Change in estimated settlement cost for prior claim years | 1.1 | (0.7) |
Undiscounted amount | 73.8 | $ 73.6 |
Discounted settlement cost estimate | $ 73.4 |
Accounting Policies - Schedul_2
Accounting Policies - Schedule of Estimated Cash Payments to Settle Claims (Details) $ in Millions | Dec. 31, 2019USD ($) |
Liability for Claims and Claims Adjustment Expense [Line Items] | |
2020 | $ 111.8 |
2021 | 68 |
2022 | 44.7 |
2023 | 27.8 |
2024 | 19 |
Thereafter | 88.1 |
Total | 359.4 |
Workers’ Compensation | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |
2020 | 78.3 |
2021 | 50.1 |
2022 | 33.3 |
2023 | 22 |
2024 | 16.4 |
Thereafter | 85.5 |
Total | 285.6 |
Third-Party Liability Claims | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |
2020 | 33.5 |
2021 | 17.9 |
2022 | 11.4 |
2023 | 5.8 |
2024 | 2.6 |
Thereafter | 2.6 |
Total | $ 73.8 |
Accounting Policies - Summary o
Accounting Policies - Summary of Components of Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Abstract] | ||
Land | $ 239.9 | $ 243.7 |
Structures | 788.4 | 791.3 |
Revenue equipment | 1,228.2 | 1,257.4 |
Technology equipment and software | 291.7 | 259.7 |
Other | 213.4 | 213.8 |
Total property and equipment, at cost | $ 2,761.6 | $ 2,765.9 |
Accounting Policies - Schedul_3
Accounting Policies - Schedule of Service Lives for Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Structures | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, service life | 10 years |
Structures | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, service life | 30 years |
Revenue equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, service life | 10 years |
Revenue equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, service life | 20 years |
Technology equipment and software | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, service life | 3 years |
Technology equipment and software | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, service life | 7 years |
Other | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, service life | 3 years |
Other | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, service life | 10 years |
Accounting Policies - New Accou
Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 386 | |
Operating lease liability | 367.1 | |
Operating lease liabilities, noncurrent | $ 246.3 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 378.8 | |
Operating lease liability | 378.8 | |
Lease deposits | 25.4 | |
Operating lease liabilities, noncurrent | $ 25.4 |
Other Assets - Schedule of Prim
Other Assets - Schedule of Primary Components of Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Intangible assets | $ 15 | $ 25.2 |
Prepayments | 1.4 | 18 |
Other | 40.1 | 21.2 |
Total | $ 56.5 | $ 64.4 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) | Jun. 01, 2011 | Dec. 31, 2019USD ($)employee | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of employees sponsored by defined benefit pension plans | employee | 9,000 | |||
Underfunded status of plans | $ 228,800,000 | $ 198,300,000 | ||
Plan assets expected to be returned | 0 | |||
Settlement adjustment | 1,800,000 | 10,900,000 | $ 7,600,000 | |
Unrecognized actuarial losses before tax | 396,300,000 | $ 358,600,000 | ||
Unrecognized actuarial losses net of tax | 372,100,000 | |||
Actuarial loss included in accumulated other comprehensive loss and expected to be recognized next year | 15,000,000 | |||
Expected amortization of prior service credit next fiscal year | $ (400,000) | |||
Expected rate of return on assets | 7.00% | 7.00% | 7.00% | |
Expected employer contribution in next fiscal year | $ 31,500,000 | |||
Income tax expense (benefit) related to amounts in other comprehensive income | (300,000) | $ (100,000) | $ 13,300,000 | |
Employer pension contribution percentage | 25.00% | |||
Employer discretionary contribution amount | 12,800,000 | 13,300,000 | 10,300,000 | |
Annual Incentive Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Incentive accruals | 0 | 29,800,000 | 0 | |
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to the multi-employer plan | $ 128,800,000 | $ 112,600,000 | $ 97,800,000 | |
Increase in annual future employer contribution | 3.50% | |||
Pension | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Minimum contribution percentage | 5.00% | 5.00% | ||
Multiemployer plan, additional surcharge required contribution rate | 5.00% | |||
Pension | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Multiemployer plan, additional surcharge required contribution rate | 10.00% | |||
Workforce Subject to Collective Bargaining Arrangements | Labor Force Concentration Risk | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of labor force | 79.00% |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Reconciliation of Projected Benefit Obligation and Fair Value of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of year | $ 1,073.2 | $ 1,228.4 |
Interest cost | 45.7 | 44.1 |
Benefits paid | (96.7) | (110.4) |
Actuarial (gain) loss | 106.5 | (88.5) |
Other | 0.1 | (0.4) |
Benefit obligation at year end | 1,128.8 | 1,073.2 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at prior year end | 874.9 | 998.3 |
Actual return on plan assets | 112.1 | (27.8) |
Employer contributions | 9.7 | 15.2 |
Benefits paid | (96.7) | (110.4) |
Other | (0.4) | |
Fair value of plan assets at year end | 900 | 874.9 |
Funded status at year end | $ (228.8) | $ (198.3) |
Employee Benefits - Amounts Rec
Employee Benefits - Amounts Recognized for Pension Benefits (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Compensation And Retirement Disclosure [Abstract] | ||
Noncurrent assets | $ 6.1 | $ 2.7 |
Current liabilities | 1 | 0.8 |
Noncurrent liabilities | $ 233.9 | $ 200.2 |
Employee Benefits - Amounts R_2
Employee Benefits - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Compensation And Retirement Disclosure [Abstract] | ||
Net actuarial loss | $ 406.1 | $ 368.9 |
Net prior service credit | (9.8) | (10.3) |
Total | $ 396.3 | $ 358.6 |
Employee Benefits - Information
Employee Benefits - Information for Pension Plans with ABO in Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Compensation And Retirement Disclosure [Abstract] | ||
ABO Exceeds Assets | $ 960.9 | $ 927.6 |
Assets Exceed ABO | 167.9 | 145.6 |
Projected benefit obligation | 1,128.8 | 1,073.2 |
ABO Exceeds Assets | 960.9 | 927.6 |
Assets Exceed ABO | 167.9 | 145.6 |
Accumulated benefit obligation | 1,128.8 | 1,073.2 |
ABO Exceeds Assets | 726 | 726.6 |
Assets Exceed ABO | 174 | 148.3 |
Fair value of plan assets | $ 900 | $ 874.9 |
Employee Benefits - Schedule _2
Employee Benefits - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Discount rate | 3.56% | 4.44% | |
Discount rate | 4.44% | 3.77% | 4.27% |
Expected rate of return on assets | 7.00% | 7.00% | 7.00% |
Employee Benefits - Schedule _3
Employee Benefits - Schedule of Asset Allocation and Targeted Long Term Asset Allocation (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan investments actual allocations | 33.00% | 39.00% |
Plan investments target allocations | 38.00% | |
Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan investments actual allocations | 30.00% | 24.00% |
Plan investments target allocations | 30.00% | |
Absolute Return | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan investments actual allocations | 37.00% | 37.00% |
Plan investments target allocations | 32.00% |
Employee Benefits - Schedule _4
Employee Benefits - Schedule of Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Expected benefit payments | |
2020 | $ 89.4 |
2021 | 85.8 |
2022 | 84.3 |
2023 | 80.6 |
2024 | 80.1 |
2025-2029 | $ 370.1 |
Employee Benefits - Schedule _5
Employee Benefits - Schedule of Costs of Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net periodic benefit cost: | |||
Interest cost | $ 45.7 | $ 44.1 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income): | |||
Settlement adjustment | (1.8) | (10.9) | $ (7.6) |
Other Postretirement Benefits Plan | |||
Net periodic benefit cost: | |||
Service cost | 0 | 5.4 | |
Interest cost | 45.7 | 44.1 | 51.1 |
Expected return on plan assets | (57.3) | (60) | (59.3) |
Amortization of prior net losses | 12.8 | 14.6 | 15.5 |
Amortization of prior net service credit | (0.4) | (0.4) | 0 |
Settlement adjustment | 1.8 | 10.9 | 7.6 |
Net periodic pension cost | 2.6 | 9.2 | 20.3 |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income): | |||
Net actuarial gains (losses) and other adjustments | 51.9 | (0.9) | (43.7) |
Net prior service credit | 0 | (10.7) | |
Settlement adjustment | (1.8) | (10.9) | (7.6) |
Amortization of prior net losses | (12.8) | (14.6) | (15.5) |
Amortization of prior net service credit | 0.4 | 0.4 | 0 |
Total recognized in other comprehensive loss (income) | 37.7 | (26) | (77.5) |
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ 40.3 | $ (16.8) | $ (57.2) |
Employee Benefits - Schedule _6
Employee Benefits - Schedule of Pension Assets at Fair Value Hierarchy Level (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | $ 900 | $ 874.9 | $ 998.3 |
Fair Value, Measurements, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 900 | 874.9 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 137.1 | 129.9 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 181.9 | 163.9 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 44.8 | 44.3 | $ 52.6 |
Fair Value, Measurements, Recurring | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 67 | 67.7 | |
Fair Value, Measurements, Recurring | Equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 66.6 | 65.5 | |
Fair Value, Measurements, Recurring | Equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 0.4 | 2.2 | |
Fair Value, Measurements, Recurring | Private Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 36.4 | 43.4 | |
Fair Value, Measurements, Recurring | Private Equities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 36.4 | 43.4 | |
Fair Value, Measurements, Recurring | Corporate and Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 29 | 24.8 | |
Fair Value, Measurements, Recurring | Corporate and Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 2.2 | 7.7 | |
Fair Value, Measurements, Recurring | Corporate and Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 18.4 | 16.2 | |
Fair Value, Measurements, Recurring | Corporate and Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 8.4 | 0.9 | |
Fair Value, Measurements, Recurring | Government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 204.2 | 177.1 | |
Fair Value, Measurements, Recurring | Government | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 53.3 | 67.2 | |
Fair Value, Measurements, Recurring | Government | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 150.9 | 109.9 | |
Fair Value, Measurements, Recurring | Interest Bearing | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 27.2 | 25.1 | |
Fair Value, Measurements, Recurring | Interest Bearing | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 15 | (10.5) | |
Fair Value, Measurements, Recurring | Interest Bearing | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | 12.2 | 35.6 | |
Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets at fair value | $ 536.2 | $ 536.8 |
Employee Benefits - Activity of
Employee Benefits - Activity of Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at prior year end | $ 874.9 | $ 998.3 |
Fair value of plan assets at year end | 900 | 874.9 |
Fair Value, Measurements, Recurring | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at prior year end | 874.9 | |
Fair value of plan assets at year end | 900 | 874.9 |
Fair Value, Measurements, Recurring | Private Equities | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at prior year end | 43.4 | |
Fair value of plan assets at year end | 36.4 | 43.4 |
Fair Value, Measurements, Recurring | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Purchases | 8.1 | 0.6 |
Sales | (17.5) | (0.3) |
Realized gains | 1.9 | |
Unrealized gain (loss) | 8 | (8.6) |
Fair value of plan assets at prior year end | 44.3 | 52.6 |
Fair value of plan assets at year end | 44.8 | 44.3 |
Fair Value, Measurements, Recurring | Level 3 | Private Equities | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets beginning of year | 43.4 | 46.6 |
Sales | (16.7) | (0.3) |
Realized gains | 1.9 | |
Unrealized gain (loss) | 7.8 | (2.9) |
Fair value of plan assets at year end | 36.4 | 43.4 |
Fair value of plan assets at prior year end | 43.4 | |
Fair value of plan assets at year end | 36.4 | 43.4 |
Fair Value, Measurements, Recurring | Level 3 | Fixed Income | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets beginning of year | 0.9 | 6 |
Purchases | 8.1 | 0.6 |
Sales | (0.8) | |
Unrealized gain (loss) | 0.2 | (5.7) |
Fair value of plan assets at year end | $ 8.4 | $ 0.9 |
Employee Benefits - Summary of
Employee Benefits - Summary of Assets for Reported NAV Used to Estimate Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 900 | $ 874.9 | $ 998.3 |
Fair Value, Measurements, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 900 | 874.9 | |
Fair Value, Measurements, Recurring | Net Asset Value per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 536.2 | 536.8 | |
Fair Value, Measurements, Recurring | Private Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unfunded Commitments | 1.7 | 2.8 | |
Fair Value, Measurements, Recurring | Private Equities | Net Asset Value per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 127 | 155.2 | |
Fair Value, Measurements, Recurring | Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unfunded Commitments | 4.1 | 0.5 | |
Fair Value, Measurements, Recurring | Fixed Income | Net Asset Value per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 231.4 | 189.2 | |
Fair Value, Measurements, Recurring | Equities | Net Asset Value per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 81.9 | $ 84 | |
Fair Value, Measurements, Recurring | Equities | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Redemption Notice Period | 0 days | 3 days | |
Fair Value, Measurements, Recurring | Equities | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Redemption Notice Period | 30 days | 30 days | |
Fair Value, Measurements, Recurring | Absolute Return | Net Asset Value per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 95.9 | $ 108.4 | |
Fair Value, Measurements, Recurring | Absolute Return | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Redemption Notice Period | 3 days | 2 days | |
Fair Value, Measurements, Recurring | Absolute Return | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Redemption Notice Period | 75 days | 45 days |
Employee Benefits - Summary o_2
Employee Benefits - Summary of Expense Related to Multi-Employer Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expense related to multi-employer plans | $ 631.1 | $ 614.8 | $ 580.7 |
Health and Welfare | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expense related to multi-employer plans | 503.5 | 499.3 | 482.6 |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expense related to multi-employer plans | $ 127.6 | $ 115.5 | $ 98.1 |
Employee Benefits - Additiona_2
Employee Benefits - Additional Information Related to Participation in Individually Significant Multi-Employer Pension Plans (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Entity Tax Identification Number | 48-0948788 |
Central States, Southeast and Southwest Areas Pension Fund | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Entity Tax Identification Number | 36-6044243 |
Expiration Date of Collective-Bargaining Agreement | Mar. 31, 2024 |
Teamsters National 401 (k) Savings Plan | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Entity Tax Identification Number | 52-1967784 |
Expiration Date of Collective-Bargaining Agreement | Mar. 31, 2024 |
Road Carriers Local 707 Pension Fund | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Entity Tax Identification Number | 51-6106510 |
Expiration Date of Collective-Bargaining Agreement | Mar. 31, 2024 |
Teamsters Local 641 Pension Fund | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Entity Tax Identification Number | 22-6220288 |
Expiration Date of Collective-Bargaining Agreement | Mar. 31, 2024 |
Employee Benefits - Schedule _7
Employee Benefits - Schedule of Pension Amounts Contributed by Funds Considered to be Individually Significant (Details) - Pension - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contribution to the multi-employer plan | $ 128.8 | $ 112.6 | $ 97.8 |
Central States, Southeast and Southwest Areas Pension Fund | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contribution to the multi-employer plan | 77.7 | 70.7 | 58.8 |
Teamsters National 401 (k) Savings Plan | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contribution to the multi-employer plan | 19 | 14.7 | 13.1 |
Road Carriers Local 707 Pension Fund | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contribution to the multi-employer plan | 2.5 | 2.2 | 2.2 |
Teamsters Local 641 Pension Fund | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contribution to the multi-employer plan | $ 2.1 | $ 1.8 | $ 1.5 |
Debt and Financing - Schedule o
Debt and Financing - Schedule of Outstanding Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Par Value | $ 902.8 | $ 890 |
Discount | (28.1) | (7.8) |
Debt Issuance Costs | (12.5) | (7.3) |
Book Value | 862.2 | 874.9 |
Book Value, Current Maturities | (4.1) | (20.7) |
Par Value, Excluding Current Maturities | 898.7 | 869.3 |
Premium (Discount), Excluding Current Maturities | (28.1) | (7.8) |
Debt Issuance Costs, Noncurrent | (12.5) | (7.3) |
Book Value, Excluding Current Maturities | 858.1 | 854.2 |
New Term Loan | ||
Debt Instrument [Line Items] | ||
Par Value | 600 | |
Discount | (28.1) | |
Debt Issuance Costs | (12) | |
Book Value | $ 559.9 | |
Effective Interest Rate | 10.50% | |
ABL Facility | 2014 ABL Facility Credit Agreement | ||
Debt Instrument [Line Items] | ||
Par Value | $ 0 | 0 |
Discount | 0 | 0 |
Debt Issuance Costs | 0 | 0 |
Book Value | 0 | 0 |
Secured Second A&R CDA | ||
Debt Instrument [Line Items] | ||
Par Value | 26 | 26.9 |
Discount | 0 | 0 |
Debt Issuance Costs | (0.1) | (0.1) |
Book Value | $ 25.9 | $ 26.8 |
Effective Interest Rate | 7.90% | 7.90% |
Unsecured Second A&R CDA | ||
Debt Instrument [Line Items] | ||
Par Value | $ 45.2 | $ 46.7 |
Discount | 0 | 0 |
Debt Issuance Costs | (0.1) | (0.2) |
Book Value | $ 45.1 | $ 46.5 |
Effective Interest Rate | 7.90% | 7.90% |
Par Value, Current Maturities | $ (1.4) | $ (1.5) |
Discount, Current Maturities | 0 | 0 |
Deferred Issuance Costs, Current | 0 | 0 |
Book Value, Current Maturities | (1.4) | (1.5) |
Lease financing obligations | ||
Debt Instrument [Line Items] | ||
Par Value | 231.6 | 242.7 |
Discount | 0 | 0 |
Debt Issuance Costs | (0.3) | (0.5) |
Book Value | $ 231.3 | $ 242.2 |
Effective Interest Rate | 16.50% | 14.90% |
Par Value, Current Maturities | $ (2.7) | $ (5) |
Discount, Current Maturities | 0 | 0 |
Deferred Issuance Costs, Current | 0 | 0 |
Book Value, Current Maturities | $ (2.7) | (5) |
Prior Term Loan | ||
Debt Instrument [Line Items] | ||
Par Value | 573.7 | |
Discount | (7.8) | |
Debt Issuance Costs | (6.5) | |
Book Value | $ 559.4 | |
Effective Interest Rate | 11.40% | |
Par Value, Current Maturities | $ (14.2) | |
Discount, Current Maturities | 0 | |
Deferred Issuance Costs, Current | 0 | |
Book Value, Current Maturities | $ (14.2) |
Debt and Financing - Schedule_2
Debt and Financing - Schedule of Outstanding Debt (Parenthetical) (Details) - London Interbank Offered Rate (LIBOR) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
New Term Loan | ||
Debt Instrument [Line Items] | ||
Floor interest rate | 1.00% | |
Basis spread on variable rate | 7.50% | |
Prior Term Loan | ||
Debt Instrument [Line Items] | ||
Floor interest rate | 1.00% | |
Basis spread on variable rate | 8.50% |
Debt and Financing - Additional
Debt and Financing - Additional Information (Details) | Sep. 11, 2019USD ($) | Jan. 31, 2018 | Dec. 31, 2019USD ($)Facility | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 13, 2014USD ($) |
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 11,200,000 | $ 0 | $ 0 | |||
Contribution rate of subsidiaries to funds | 25.00% | |||||
Acquisition of property and equipment | $ 143,200,000 | 145,400,000 | $ 103,300,000 | |||
Minimum annual rentals 2020 | 138,400,000 | |||||
Future minimum payments due | 429,200,000 | |||||
Revenue Equipment | ||||||
Debt Instrument [Line Items] | ||||||
Operating lease commitment | $ 111,000,000 | |||||
Operating lease term | 4 years | |||||
Operating Lease Capital Equivalent | $ 131,800,000 | |||||
Minimum annual rentals 2020 | 154,400,000 | |||||
Future minimum payments due | $ 451,100,000 | |||||
Minimum | 2014 ABL Facility Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee percentage | 0.25% | |||||
Maximum | 2014 ABL Facility Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee percentage | 0.375% | |||||
2014 Financing | ||||||
Debt Instrument [Line Items] | ||||||
Number of credit facilities | Facility | 2 | |||||
2014 ABL Facility Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, total cash and availability | 39,200,000 | |||||
Managed Accessibility | $ 200,000 | 1,200,000 | ||||
Restricted cash | 29,000,000 | 25,000,000 | ||||
Cash, cash equivalents and managed accessibility | 80,400,000 | 203,800,000 | ||||
2014 ABL Facility Credit Agreement | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity, uncommitted accordion | $ 100,000,000 | |||||
Letters of credit outstanding, amount | $ 337,800,000 | $ 341,300,000 | ||||
Collateral line cap, percent | 10.00% | |||||
Restricted cash | $ 29,000,000 | |||||
Amended Second A&R CDA | ||||||
Debt Instrument [Line Items] | ||||||
Annual amortization of amount outstanding, percent | 2.00% | |||||
Debt instrument maturity date | Dec. 31, 2022 | |||||
Term Loan | 2014 Financing | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount issued | $ 600,000,000 | |||||
Term Loan | New Term Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount issued | $ 600,000,000 | |||||
Floor interest rate | 1.00% | |||||
Basis spread on variable rate | 7.50% | |||||
Margin step down if certain EBITDA is achieved | 1.00% | |||||
Adjusted EBITDA threshold for margin step down | $ 400,000,000 | |||||
Minimum adjusted EBITDA | $ 200,000,000 | |||||
Percent of cash proceeds from disposition of assets to be used to repay debt | 100.00% | |||||
Repayment of debt, amount of property sales to be used in reinvestment | $ 40,000,000 | |||||
Loss on extinguishment of debt | $ 11,200,000 | |||||
Term Loan | New Term Loan Agreement | Premium Until First Anniversary Date | ||||||
Debt Instrument [Line Items] | ||||||
Prepayment premium, percent | 3.00% | |||||
Term Loan | New Term Loan Agreement | Premium From First Anniversary Date Until Second Anniversary Date | ||||||
Debt Instrument [Line Items] | ||||||
Prepayment premium, percent | 2.00% | |||||
Term Loan | New Term Loan Agreement | Premium From Second Anniversary Date Until Third Anniversary Date | ||||||
Debt Instrument [Line Items] | ||||||
Prepayment premium, percent | 1.00% | |||||
Term Loan | New Term Loan Agreement | Premium Thereafter | ||||||
Debt Instrument [Line Items] | ||||||
Prepayment premium, percent | 0.00% | |||||
ABL Facility | Minimum | 2014 ABL Facility Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 1.75% | |||||
ABL Facility | 2014 Financing | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount issued | 450,000,000 | |||||
ABL Facility | 2014 ABL Facility Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Annual limit on capital expenditures | $ 210,600,000 | |||||
Line of credit facility, total cash and availability | $ 37,700,000 | |||||
ABL Facility | 2014 ABL Facility Credit Agreement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Annual limit on capital expenditures | $ 200,000,000 | |||||
2014 ABL Facility Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
2014 ABL Facility Credit Agreement | ABL Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.75% | |||||
2014 ABL Facility Credit Agreement | 2014 Financing | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount issued | $ 450,000,000 |
Debt and Financing - Schedule_3
Debt and Financing - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
2020 | $ 3.9 | |
2021 | 3.7 | |
2022 | 71.6 | |
2023 | 3.9 | |
2024 | 601.9 | |
Thereafter | 217.8 | |
Total | 902.8 | $ 890 |
Term Loan | ||
Debt Instrument [Line Items] | ||
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 600 | |
Thereafter | 0 | |
Total | 600 | |
ABL Facility | 2014 ABL Facility Credit Agreement | ||
Debt Instrument [Line Items] | ||
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total | 0 | 0 |
Second A&R CDA | ||
Debt Instrument [Line Items] | ||
2020 | 1.4 | |
2021 | 1.4 | |
2022 | 68.4 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total | 71.2 | |
Lease Financing Obligation | ||
Debt Instrument [Line Items] | ||
2020 | 2.5 | |
2021 | 2.3 | |
2022 | 3.2 | |
2023 | 3.9 | |
2024 | 1.9 | |
Thereafter | 217.8 | |
Total | $ 231.6 | $ 242.7 |
Debt and Financing - Schedule_4
Debt and Financing - Schedule of Maturities of Long-term Debt (Parenthetical) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
Lease financing obligations subsequent to 2024 | $ 217.8 |
Lease Financing Obligation | |
Debt Instrument [Line Items] | |
Lease financing obligations subsequent to 2024 | $ 217.8 |
Debt and Financing - Schedule_5
Debt and Financing - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Book Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 862.2 | $ 874.9 |
Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 864.7 | 850.7 |
Prior Term Loan | Book Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 559.4 | |
Prior Term Loan | Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 546 | |
New Term Loan | Book Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 559.9 | |
New Term Loan | Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 559.3 | |
Lease financing obligations | Book Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 231.3 | 242.2 |
Lease financing obligations | Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 233.7 | 234.7 |
Second A&R CDA | Book Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 71 | 73.3 |
Second A&R CDA | Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 71.7 | $ 70 |
Debt and Financing - Schedule_6
Debt and Financing - Schedule of Cash and Cash Equivalents and Managed Accessibility (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Cash and cash equivalents | $ 109.2 | $ 227.6 |
2014 ABL Facility Credit Agreement | ||
Debt Instrument [Line Items] | ||
Cash and cash equivalents | 109.2 | 227.6 |
Less: amounts placed into restricted cash subsequent to year-end | (29) | (25) |
Managed Accessibility | 0.2 | 1.2 |
Total cash and cash equivalents and Managed Accessibility | $ 80.4 | $ 203.8 |
Leases - Summary of Assets and
Leases - Summary of Assets and Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease assets | $ 386 |
Finance lease assets | 2.6 |
Total leased assets | 388.6 |
Operating | 120.8 |
Finance | 0.2 |
Operating lease liabilities, noncurrent | 246.3 |
Finance | 3.3 |
Total lease liabilities | $ 370.6 |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost(a) | $ 168 |
Short-term cost | 14.2 |
Variable lease cost | 5.9 |
Amortization of leased assets | 0.4 |
Interest on lease liabilities | 0.5 |
Total lease cost | $ 189 |
Leases - Summary of Remaining M
Leases - Summary of Remaining Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 154.4 |
2021 | 128.9 |
2022 | 77.8 |
2023 | 41.1 |
2024 | 16.3 |
After 2024 | 32.6 |
Total lease payments | 451.1 |
Less: Interest | 84 |
Operating lease liability | 367.1 |
Finance Leases | |
2020 | 0.6 |
2021 | 0.6 |
2022 | 0.6 |
2023 | 0.6 |
2024 | 0.7 |
After 2024 | 3.4 |
Total lease payments | 6.5 |
Less: Interest | 3 |
Present value of lease liabilities | 3.5 |
Total | |
2020 | 155 |
2021 | 129.5 |
2022 | 78.4 |
2023 | 41.7 |
2024 | 17 |
After 2024 | 36 |
Total lease payments | 457.6 |
Less: Interest | 87 |
Present value of lease liabilities | $ 370.6 |
Leases - Summary of Lease Term
Leases - Summary of Lease Term and Discount Rate (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Operating lease, Weighted Average Remaining Lease | 3 years 8 months 12 days |
Operating lease, Weighted Average Discount Rate | 11.00% |
Finance lease, Weighted Average Remaining Lease | 9 years 9 months 18 days |
Finance lease, Weighted Average Discount Rate | 11.30% |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 154.6 |
Operating cash flows from finance leases | 0.5 |
Financing cash flows from finance leases | 0.3 |
Leased assets obtained in exchange for new operating lease liabilities | $ 129.7 |
Leases - Summary of Contractual
Leases - Summary of Contractual Cash Obligation (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating leases | |
Total | $ 429.2 |
Less than 1 year | 138.4 |
1-3 years | 212 |
3-5 years | 63.3 |
After 5 years | $ 15.5 |
Equity-Based Compensation Pla_3
Equity-Based Compensation Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Performance Based Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Weighted average share price | $ 0 | $ 18.06 | $ 17.90 |
Intrinsic value, outstanding | $ 5.8 | ||
Compensation cost share based awards | 2.6 | $ 0.1 | $ 0.9 |
Unrecognized compensation expense | $ 2.9 | ||
Period of recognition | 4 months 24 days | ||
Restricted Stock and Stock Unit | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average share price | $ 9.16 | $ 10.91 | $ 11.91 |
Intrinsic value, outstanding | $ 2.5 | ||
Compensation cost share based awards | 3.6 | $ 6.2 | $ 5.6 |
Unrecognized compensation expense | $ 1.8 | ||
Period of recognition | 8 months 12 days | ||
Restricted stock units vested but common shares not distributed (in shares) | 500,000 | 660,000 | 528,000 |
Vested in Period, Fair Value | $ 7.1 | $ 5 | $ 3.6 |
2019 Long Term Incentive and Equity Award Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares reserved for issuance (in shares) | 1,900,000 | ||
Equity award plan. vesting rights | According to the plan provisions, the stock units provide the holders the right to receive one share of our Common Stock upon vesting (and distribution) of one stock unit. | ||
2019 Long Term Incentive and Equity Award Plan | Key Management Personnel | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares reserved for issuance (in shares) | 2,500,000 | ||
2011 and 2019 Long Term Incentive and Equity Award Plan | Performance Based Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Award vesting period | 30 days | ||
Weighted average share price | $ 11.75 | ||
Vesting percentage | 100.00% | ||
Remaining shares vesting period | 12 months |
Equity-Based Compensation Pla_4
Equity-Based Compensation Plans - Summary of Performance-Based Unvested Stock Unit Awards (Details) - Performance Based Awards - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares/units [Roll Forward] | |||
Unvested Shares/units, Beginning balance | 0 | 114 | 261 |
Forfeited, Shares/units | 0 | 0 | (6) |
Unvested shares/units, Ending balance | 0 | 0 | 114 |
Weighted Average Grant-Date Fair Value [Roll Forward] | |||
Unvested, Weighted Average Grant-Date Fair Value, Beginning balance | $ 0 | $ 18.06 | $ 17.98 |
Forfeited, Weighted Average Grant-Date Fair Value | 0 | 0 | 18.23 |
Unvested, Weighted Average Grant-Date Fair Value, Ending balance | $ 0 | $ 0 | $ 18.06 |
2019 Long Term Incentive and Equity Award Plan | |||
Shares/units [Roll Forward] | |||
Granted, Shares/units | 2,927 | ||
Forfeited, Shares/units | (642) | ||
Unvested shares/units, Ending balance | 2,285 | ||
Weighted Average Grant-Date Fair Value [Roll Forward] | |||
Granted, Weighted Average Grant-Date Fair Value | $ 2.59 | ||
Forfeited, Weighted Average Grant-Date Fair Value | 3.20 | ||
Unvested, Weighted Average Grant-Date Fair Value, Ending balance | $ 2.42 |
Equity-Based Compensation Pla_5
Equity-Based Compensation Plans - Summary of Performance-Based Unvested Stock Unit Activity (Details) - Performance Based Awards - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares/units [Roll Forward] | |||
Unvested Shares/units, Beginning balance | 0 | 114 | 261 |
Vested, Shares/units | 0 | (114) | (141) |
Forfeited, Shares/units | 0 | 0 | (6) |
Unvested shares/units, Ending balance | 0 | 0 | 114 |
Weighted Average Grant-Date Fair Value [Roll Forward] | |||
Unvested, Weighted Average Grant-Date Fair Value, Beginning balance | $ 0 | $ 18.06 | $ 17.98 |
Weighted average share price | 0 | 18.06 | 17.90 |
Forfeited, Weighted Average Grant-Date Fair Value | 0 | 0 | 18.23 |
Unvested, Weighted Average Grant-Date Fair Value, Ending balance | $ 0 | $ 0 | $ 18.06 |
Equity-Based Compensation Pla_6
Equity-Based Compensation Plans - Summary of Activity of Unvested Restricted Stock and Stock Unit Awards (Details) - Restricted Stock and Stock Unit - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares/units [Roll Forward] | |||
Unvested Shares/units, Beginning balance | 1,416 | 1,307 | 1,175 |
Granted, Shares/units | 437 | 730 | 496 |
Vested, Shares/units | (779) | (457) | (306) |
Forfeited, Shares/units | (81) | (164) | (58) |
Unvested shares/units, Ending balance | 993 | 1,416 | 1,307 |
Weighted Average Grant-Date Fair Value [Roll Forward] | |||
Unvested, Weighted Average Grant-Date Fair Value, Beginning balance | $ 10.65 | $ 11.55 | $ 11.30 |
Granted, Weighted Average Grant-Date Fair Value | 5.39 | 9.35 | 12.43 |
Weighted average share price | 9.16 | 10.91 | 11.91 |
Forfeited, Weighted Average Grant-Date Fair Value | 10.74 | 11.31 | 12.28 |
Unvested, Weighted Average Grant-Date Fair Value, Ending balance | $ 9.50 | $ 10.65 | $ 11.55 |
Equity-Based Compensation Pla_7
Equity-Based Compensation Plans - Summary of Vesting Provisions for Restricted Stock and Stock Unit Awards (Details) - Restricted Stock and Stock Unit - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Shares/units | 437 | 730 | 496 |
50% immediately and 50% on the 1 year anniversary of grant date | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Shares/units | 162 | 0 | 0 |
100% immediately | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Shares/units | 186 | 132 | 106 |
33.3% per year for three years | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Shares/units | 89 | 452 | 85 |
100% on February 14, 2020 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Shares/units | 0 | 0 | 305 |
100% on July 31, 2018 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Shares/units | 0 | 146 | 0 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Liabilities (Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Depreciation | $ 99.5 | $ 109 |
Right of use - leases | 93.7 | 0 |
Deferred revenue | 6.3 | 9.3 |
Intangibles | 3.4 | 6 |
State taxes | 19.6 | 19.9 |
Other | 16 | 15.2 |
Deferred tax liabilities | 238.5 | 159.4 |
Claims and insurance | (89.9) | (84.8) |
Net operating loss carryforwards | (210.7) | (199.9) |
Employee benefit accruals | (94.8) | (88.9) |
Deferred Tax Asset, Sale Leaseback Transaction | (55.5) | (54.5) |
Lease liabilities | (93.8) | 0 |
Other | (28.4) | (20.6) |
Deferred tax assets | (573.1) | (448.7) |
Valuation allowance | 334 | 291.1 |
Net deferred tax assets | (239.1) | (157.6) |
Net deferred tax (asset) liability | $ (0.6) | |
Net deferred tax (asset) liability | $ 1.8 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | |||
Net deferred tax (asset) liability | $ (600,000) | ||
Net deferred tax (asset) liability | $ 1,800,000 | ||
Income tax receivable | 1,600,000 | 5,800,000 | |
Net operating loss carryforwards | 756,500,000 | ||
Foreign tax credit carryforwards, subject to expiration | 100,000 | ||
Valuation allowance | 334,000,000 | 291,100,000 | |
Deferred income tax benefit | 0 | 0 | $ 13,300,000 |
Unrecognized tax benefits that would impact effective tax rate | 9,800,000 | 10,500,000 | |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 900,000 | 800,000 | |
Interest accrual reversal | 1,000,000 | 300,000 | |
Interest accrued net reduction | (100,000) | 500,000 | |
Total amount of interest accrued for uncertain tax positions | 2,700,000 | $ 2,800,000 | |
Tax audit settlement expense | 0 | ||
Accrued penalties related to uncertain tax positions | 0 | ||
Amount by which unrecognized tax benefits may decrease over the next 12 months | 7,300,000 | ||
Tax Year Prior to 2018 | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryforwards | $ 690,000,000 | ||
Tax Year 2030 | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryforwards, expiration year | 2030 | ||
Tax Year 2037 | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryforwards, expiration year | 2037 | ||
Tax Year 2027 | General Business and Other Credit Carryforwards | |||
Income Tax Disclosure [Line Items] | |||
Foreign tax credit carryforwards, subject to expiration, year | 2027 | ||
Tax Year 2031 | General Business and Other Credit Carryforwards | |||
Income Tax Disclosure [Line Items] | |||
Foreign tax credit carryforwards, subject to expiration, year | 2031 | ||
Tax Year 2010 | State | |||
Income Tax Disclosure [Line Items] | |||
State audits of tax under examination, year | 2010 | ||
Tax Year 2011 | State | |||
Income Tax Disclosure [Line Items] | |||
State audits of tax under examination, year | 2011 | ||
Tax Year 2012 | State | |||
Income Tax Disclosure [Line Items] | |||
State audits of tax under examination, year | 2012 | ||
Tax Year 2013 | State | |||
Income Tax Disclosure [Line Items] | |||
State audits of tax under examination, year | 2013 | ||
Tax Year 2014 | State | |||
Income Tax Disclosure [Line Items] | |||
State audits of tax under examination, year | 2014 |
Income Taxes - Reconciliation b
Income Taxes - Reconciliation between Federal Statutory Tax Rate and Consolidated Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 35.00% |
State income taxes, net | (0.70%) | 14.10% | (2.80%) |
Foreign tax rate differential | (2.60%) | 12.10% | (10.00%) |
Permanent differences | (0.60%) | 8.30% | (8.90%) |
Valuation allowance | (17.70%) | (17.50%) | (48.60%) |
Benefit from intraperiod tax allocation under ASC 740 | 0.00% | 0.00% | 73.50% |
Net change in unrecognized tax benefits | 0.60% | (0.90%) | 0.50% |
Other, net (primarily prior year return to provision) | 4.00% | (1.60%) | 1.60% |
Effective tax rate | 4.00% | 35.50% | 40.30% |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Provision (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 0 | $ 0 | $ (0.9) |
State | (3.3) | 5.4 | 0.8 |
Foreign | 2 | 6.8 | 6 |
Current income tax expense (benefit) | (1.3) | 12.2 | 5.9 |
Deferred: | |||
Federal | 0 | 0 | (13.3) |
State | 0 | 0 | 0 |
Foreign | (3) | (1.1) | 0.1 |
Deferred income tax benefit | (3) | (1.1) | (13.2) |
Income tax expense (benefit) | (4.3) | 11.1 | (7.3) |
Domestic | (104.7) | 13.6 | (30.5) |
Foreign | (3.6) | 17.7 | 12.4 |
Income (loss) before income taxes | $ (108.3) | $ 31.3 | $ (18.1) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Unrecognized Tax Benefits [Roll Forward] | ||
Unrecognized tax benefits at January 1 | $ 59.2 | $ 56.8 |
Increases related to: tax positions taken during a prior period | 0 | 7.1 |
Increases related to: tax positions taken during the current period | 0.5 | 0.4 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (0.1) | (0.1) |
Decreases related to: lapse of applicable statute of limitations | (1.1) | (4.8) |
Decreases related to: settlements with taxing authorities | 0 | (0.2) |
Unrecognized tax benefits at December 31 | $ 58.5 | $ 59.2 |
Income Taxes - Summary of Tax Y
Income Taxes - Summary of Tax Years Remain Subject to Examination (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Earliest Tax Year | |
Income Tax Disclosure [Line Items] | |
Statute remains open | 2005 |
Tax years subject to examination | 2005 |
Tax years not examined | 2014 |
Latest Tax Year | |
Income Tax Disclosure [Line Items] | |
Statute remains open | 2018 |
Tax years subject to examination | 2013 |
Tax years not examined | 2019 |
Business Segments- Additional I
Business Segments- Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 4,871.2 | $ 5,092 | $ 4,891 |
Foreign Countries | |||
Segment Reporting Information [Line Items] | |||
Revenues | 79.6 | 104.1 | 99.3 |
Long-lived assets located in foreign countries | $ 7.2 | $ 6.5 | $ 5.3 |
Business Segments - Schedule of
Business Segments - Schedule of Operations by Business Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
External revenue | $ 4,871.2 | $ 5,092 | $ 4,891 |
Operating income (loss) | 16.2 | 142.9 | 119 |
Identifiable assets | 1,831.6 | 1,617.1 | 1,585.5 |
Acquisition of property and equipment | (143.2) | (145.4) | (103.3) |
Proceeds from disposal of property and equipment | 25.9 | 36.4 | 8.8 |
Depreciation and amortization | 152.4 | 147.7 | 147.7 |
Operating Segments | YRC Freight | |||
Segment Reporting Information [Line Items] | |||
External revenue | 3,088.7 | 3,197.3 | 3,067.9 |
Operating income (loss) | 38.3 | 85 | 60.7 |
Identifiable assets | 1,317 | 973.6 | 1,042.1 |
Acquisition of property and equipment | (89.6) | (76.5) | (66.6) |
Proceeds from disposal of property and equipment | 14.1 | 35.8 | 8.1 |
Depreciation and amortization | 86.5 | 82.2 | 84.8 |
Operating Segments | Regional Transportation | |||
Segment Reporting Information [Line Items] | |||
External revenue | 1,782.7 | 1,895 | 1,823.4 |
Operating income (loss) | (4.8) | 70.7 | 67.9 |
Identifiable assets | 746.6 | 626.4 | 607.4 |
Acquisition of property and equipment | (45.5) | (62.9) | (36.6) |
Proceeds from disposal of property and equipment | 11.8 | 0.6 | 0.7 |
Depreciation and amortization | 64.6 | 65 | 62.9 |
Corporate/ Eliminations | |||
Segment Reporting Information [Line Items] | |||
External revenue | (0.2) | (0.3) | (0.3) |
Operating income (loss) | (17.3) | (12.8) | (9.6) |
Identifiable assets | (232) | 17.1 | (64) |
Acquisition of property and equipment | (8.1) | (6) | (0.1) |
Proceeds from disposal of property and equipment | 0 | 0 | 0 |
Depreciation and amortization | $ 1.3 | $ 0.5 | $ 0 |
Shareholders' Deficit - Schedul
Shareholders' Deficit - Schedule of Activity in Shares of Common Stock (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance, common shares | 33,090 | 32,733 | 32,473 |
Ending balance, common shares | 33,715 | 33,090 | 32,733 |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Issuance of equity awards, net | 625 | 357 | 260 |
Shareholders' Deficit - Additio
Shareholders' Deficit - Additional Information (Details) - International Brotherhood of Teamsters - Series A Voting Preferred Stock | 12 Months Ended |
Dec. 31, 2019Directorshares | |
Earnings Per Share Basic [Line Items] | |
Preferred stock, voting rights description | The Company issued to the IBT one share of Series A Voting Preferred Stock that entitles the holder to elect two directors to the Company’s Board of Directors |
Number of voting share issued that entitles holder to elect directors | shares | 1 |
Number of directors to be elected for each voting share issued | Director | 2 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Basic and Dilutive Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Basic and dilutive net income (loss) | $ (15.3) | $ (16) | $ (23.6) | $ (49.1) | $ 17.5 | $ 2.9 | $ 14.4 | $ (14.6) | $ (104) | $ 20.2 | $ (10.8) |
Basic weighted average shares outstanding | 33,252 | 32,983 | 32,685 | ||||||||
Effect of dilutive securities: | |||||||||||
Unvested shares and stock units | 0 | 876 | 0 | ||||||||
Dilutive weighted average shares outstanding | 33,252 | 33,859 | 32,685 | ||||||||
Basic earnings (loss) per share | $ (3.13) | $ 0.61 | $ (0.33) | ||||||||
Diluted earnings (loss) per share | $ (3.13) | $ 0.60 | $ (0.33) |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Unvested shares and stock units | 0 | 876 | 0 |
Earnings (Loss) Per Share - S_2
Earnings (Loss) Per Share - Schedule of Anti-Dilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Anti-Dilutive Unvested Shares and Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive unvested shares and options | 610 | 51 | 8 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Chief Executive Officer - Consulting Services - James L. Welch - Affiliated Entity - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Annual compensation | $ 150,000 | |
Services performed | $ 87,500 | $ 62,500 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | Feb. 14, 2020USD ($) |
Subsequent Event [Line Items] | |
Gain on sale of Real estate | $ 38.8 |
Regional Transportation Facility | |
Subsequent Event [Line Items] | |
Cash proceeds from sale of real estate | 43.6 |
Retained from sale of real estate | 25.2 |
New Term Loan | |
Subsequent Event [Line Items] | |
Cash proceeds from sale of real estate | $ 40 |