Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | YRCW | |
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 | 53,283,698 | |
Entity File Number | 0-12255 | |
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 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 264.2 | $ 109.2 |
Restricted amounts held in escrow | 56 | 0 |
Accounts receivable, net | 496.2 | 464.4 |
Prepaid expenses and other | 42.9 | 44.6 |
Total current assets | 859.3 | 618.2 |
Property and Equipment: | ||
Cost | 2,716 | 2,761.6 |
Less – accumulated depreciation | (2,002.3) | (1,991.3) |
Net property and equipment | 713.7 | 770.3 |
Deferred income taxes, net | 0.5 | 0.6 |
Operating lease right-of-use assets | 319.2 | 386 |
Other assets | 43.9 | 56.5 |
Total Assets | 1,936.6 | 1,831.6 |
Current Liabilities: | ||
Accounts payable | 195.7 | 163.7 |
Wages, vacations and employee benefits | 333.2 | 195.9 |
Current operating lease liabilities | 114 | 120.8 |
Claims and insurance accruals | 111 | 120.4 |
Other accrued taxes | 25.6 | 25.8 |
Other current and accrued liabilities | 19.2 | 21.3 |
Current maturities of long-term debt | 3.6 | 4.1 |
Total current liabilities | 802.3 | 652 |
Other Liabilities: | ||
Long-term debt and financing, less current portion | 871.1 | 858.1 |
Pension and postretirement | 225.9 | 236.5 |
Operating lease liabilities | 214 | 246.3 |
Claims and other liabilities | 290.2 | 279.9 |
Commitments and contingencies | ||
Shareholders’ Deficit: | ||
Cumulative preferred stock, $1 par value per share | ||
Common stock, $0.01 par value per share | 0.3 | 0.3 |
Capital surplus | 2,335.5 | 2,332.9 |
Accumulated deficit | (2,345.2) | (2,312.4) |
Accumulated other comprehensive loss | (364.8) | (369.3) |
Treasury stock, at cost (410 shares) | (92.7) | (92.7) |
Total shareholders’ deficit | (466.9) | (441.2) |
Total Liabilities and Shareholders’ Deficit | $ 1,936.6 | $ 1,831.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Treasury stock, shares (in shares) | 410 | 410 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Operating Revenue | $ 1,015.4 | $ 1,272.6 | $ 2,165.8 | $ 2,454.9 |
Operating Expenses: | ||||
Salaries, wages and employee benefits | 647.9 | 782.3 | 1,368.1 | 1,500.5 |
Fuel, operating expenses and supplies | 162.7 | 228.3 | 370.7 | 464.2 |
Purchased transportation | 126 | 158 | 262.2 | 304.3 |
Depreciation and amortization | 34.2 | 38.5 | 69.9 | 78.5 |
Other operating expenses | 55.2 | 57.4 | 116.8 | 121.2 |
Gains on property disposals, net | (6) | (6.2) | (45.3) | (4.6) |
Impairment charges | 0 | 0 | 0 | 8.2 |
Total operating expenses | 1,020 | 1,258.3 | 2,142.4 | 2,472.3 |
Operating Income (Loss) | (4.6) | 14.3 | 23.4 | (17.4) |
Nonoperating Expenses: | ||||
Interest expense | 40.2 | 28.2 | 68.5 | 55.2 |
Non-union pension and postretirement benefits | (1.6) | 0.5 | (3.2) | 0.8 |
Other, net | 1.4 | 0.1 | (1.2) | (0.1) |
Nonoperating expenses, net | 40 | 28.8 | 64.1 | 55.9 |
Loss before income taxes | (44.6) | (14.5) | (40.7) | (73.3) |
Income tax expense (benefit) | (7.5) | 9.1 | (7.9) | (0.6) |
Net loss | (37.1) | (23.6) | (32.8) | (72.7) |
Other comprehensive income, net of tax | 3.2 | 2 | 4.5 | 5.5 |
Comprehensive Loss | $ (33.9) | $ (21.6) | $ (28.3) | $ (67.2) |
Average Common Shares Outstanding - Basic | 34,021 | 33,247 | 33,906 | 33,199 |
Average Common Shares Outstanding - Diluted | 34,021 | 33,247 | 33,906 | 33,199 |
Loss Per Share - Basic | $ (1.09) | $ (0.71) | $ (0.97) | $ (2.19) |
Loss Per Share - Diluted | $ (1.09) | $ (0.71) | $ (0.97) | $ (2.19) |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Activities: | ||
Net loss | $ (32.8) | $ (72.7) |
Adjustments to reconcile net loss to cash flows from operating activities: | ||
Depreciation and amortization | 69.9 | 78.5 |
Lease amortization and accretion expense | 83.5 | 82.3 |
Lease payments | (55.7) | (75.4) |
Paid-in-kind interest | 38.8 | 0 |
Equity-based compensation and employee benefits expense | 10.5 | 9.5 |
Gains losses on property disposals, net | (45.3) | (4.6) |
Impairment charges | 0 | 8.2 |
Deferred income tax benefit, net | 0.1 | (1.6) |
Other noncash items, net | 4.8 | 2.1 |
Changes in assets and liabilities, net: | ||
Accounts receivable | (31.9) | (67.2) |
Accounts payable | 22 | 5.3 |
Other operating assets | 8.6 | (4.5) |
Other operating liabilities | 141.1 | 10.6 |
Net cash provided by (used in) operating activities | 213.6 | (29.5) |
Investing Activities: | ||
Acquisition of property and equipment | (24.1) | (70.6) |
Proceeds from disposal of property and equipment | 54.1 | 8.3 |
Net cash provided by (used in) investing activities | 30 | (62.3) |
Financing Activities: | ||
Repayment of long-term debt | (28.2) | (17.5) |
Debt issuance costs | (3.8) | 0 |
Payments for tax withheld on equity-based compensation | (0.6) | (0.8) |
Net cash used in financing activities | (32.6) | (18.3) |
Net Increase (Decrease) In Cash and Cash Equivalents and Restricted Amounts Held in Escrow | 211 | (110.1) |
Cash and Cash Equivalents and Restricted Amounts Held in Escrow, Beginning of Period | 109.2 | 227.6 |
Cash and Cash Equivalents and Restricted Amounts Held in Escrow, End of Period | 320.2 | 117.5 |
Supplemental Cash Flow Information: | ||
Interest paid | (22.1) | (50.6) |
Income tax payment | $ (0.6) | $ (2.5) |
Statement of Consolidated Share
Statement of Consolidated Shareholders' Deficit (Unaudited) - 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, 2018 | $ (305.5) | $ 0 | $ 0.3 | $ 2,327.6 | $ (2,208.4) | $ (332.3) | $ (92.7) |
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 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) |
Net income (loss) | (72.7) | ||||||
Ending balance at Jun. 30, 2019 | (370.1) | 0 | 0.3 | 2,330.2 | (2,281.1) | (326.8) | (92.7) |
Beginning balance at Mar. 31, 2019 | (349.5) | 0 | 0.3 | 2,329.2 | (2,257.5) | (328.8) | (92.7) |
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 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) |
Beginning balance at Dec. 31, 2019 | (441.2) | 0 | 0.3 | 2,332.9 | (2,312.4) | (369.3) | (92.7) |
Equity-based compensation | 1.8 | 0 | 1.8 | ||||
Net income (loss) | 4.3 | 0 | 4.3 | ||||
Amortization of prior net losses | 3.3 | 0 | 3.3 | ||||
Amortization of prior service credit | (0.1) | 0 | (0.1) | ||||
Foreign currency translation adjustments | (1.9) | 0 | (1.9) | ||||
Ending balance at Mar. 31, 2020 | (433.8) | 0 | 0.3 | 2,334.7 | (2,308.1) | (368) | (92.7) |
Beginning balance at Dec. 31, 2019 | (441.2) | 0 | 0.3 | 2,332.9 | (2,312.4) | (369.3) | (92.7) |
Net income (loss) | (32.8) | ||||||
Ending balance at Jun. 30, 2020 | (466.9) | 0 | 0.3 | 2,335.5 | (2,345.2) | (364.8) | (92.7) |
Beginning balance at Mar. 31, 2020 | (433.8) | 0 | 0.3 | 2,334.7 | (2,308.1) | (368) | (92.7) |
Equity-based compensation | 0.8 | 0 | 0.8 | ||||
Net income (loss) | (37.1) | 0 | (37.1) | ||||
Amortization of prior net losses | 2.4 | 0 | 2.4 | ||||
Amortization of prior service credit | (0.1) | 0 | (0.1) | ||||
Foreign currency translation adjustments | 0.9 | 0 | 0.9 | ||||
Ending balance at Jun. 30, 2020 | $ (466.9) | $ 0 | $ 0.3 | $ 2,335.5 | $ (2,345.2) | $ (364.8) | $ (92.7) |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Description of Business | 1. Description of Business YRC Worldwide Inc. (also referred to as “YRC Worldwide,” the “Company,” “we,” “us” or “our”) is a holding company that, through its operating subsidiaries, offers its customers a wide range of transportation services. We have one of the largest, most comprehensive less-than-truckload (“LTL”) networks in North America with local, regional, national and international capabilities. Through our team of experienced service professionals, we offer expertise in LTL shipments and flexible supply chain solutions, ensuring customers can ship industrial, commercial and retail goods with confidence. YRC Worldwide provides for the movement of industrial, commercial and retail goods through our LTL subsidiaries including USF Holland LLC (“Holland”), New Penn Motor Express LLC (“New Penn”), USF Reddaway Inc. (“Reddaway”), YRC Inc. and YRC Freight Canada Company (both doing business as, and herein referred to as, “YRC Freight”). Our LTL companies provide regional, national and international services through a consolidated network of facilities located across the United States, Canada, and Puerto Rico. We also offer services through HNRY Logistics, Inc. (“HNRY Logistics”), our customer-specific logistics solutions provider, specializing in truckload, residential, and warehouse solutions. At June 30, 2020, approximately 80% of our labor force is subject to collective bargaining agreements, which predominantly expire on March 31, 2024. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 2. 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 Holland and Reddaway consist of thirteen weeks that end on a Saturday either before or after the end of March, June and September, whereas all other companies’ quarters end on the natural calendar quarter end. Segments As noted in our 2019 annual report on Form 10-K, our Chief Operating Decision Maker began evaluating performance and business results, as well as making resource and operating decisions under the single segment view as a result of the business transformation that began during 2019. As such, a single segment view is presented in this Form 10-Q. See further details in our 2019 annual report as filed March 11, 2020. Revenue Disaggregation We considered the disclosure requirements for revenue disaggregation guidance in ASC Topic 606, Revenue from Contracts with Customers Three Months Six Months Disaggregated Revenue (in millions) 2020 2019 2020 2019 LTL revenue $ 920.5 $ 1,176.1 1,971.2 $ 2,265.9 Other revenue 94.9 96.5 194.6 189.0 Total revenue $ 1,015.4 $ 1,272.6 $ 2,165.8 $ 2,454.9 Fair Value of Financial Instruments The following table summarizes the fair value hierarchy of our financial assets and liabilities carried at fair value on a recurring basis as of June 30, 2020: Fair Value Measurement at June 30, 2020 (in millions) Total Carrying Value Quoted prices in active market (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Restricted amounts held in escrow-current $ 56.0 $ 56.0 $ — $ — Total assets at fair value $ 56.0 $ 56.0 $ — $ — Restricted amounts held in escrow are invested in money market accounts and are recorded at fair value based on quoted market prices. The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these instruments. Impact of Recently-Issued Accounting Standards While there are recently issued accounting standards that are applicable to the Company, none of these standards are expected to have a material impact on our financial statements. |
Debt and Financing
Debt and Financing | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Financing | 3. Debt and Financing Our outstanding debt as of June 30, 2020 consisted of the following: As of June 30, 2020 (in millions) Par Value Discount Debt Issuance Costs Book Value Effective Interest Rate New Term Loan $ 613.5 $ (23.9 ) $ (10.7 ) $ 578.9 (a) 15.1 % ABL Facility — — — — Secured Second A&R CDA 24.8 — (0.1 ) 24.7 7.8 % Unsecured Second A&R CDA 45.2 — (0.1 ) 45.1 7.8 % Lease financing obligations 226.3 — (0.3 ) 226.0 16.6 % Total debt $ 909.8 $ (23.9 ) $ (11.2 ) $ 874.7 Current maturities of Unsecured Second A&R CDA (1.4 ) $ — $ — (1.4 ) Current maturities of lease financing obligations (2.2 ) $ — $ — (2.2 ) Long-term debt $ 906.2 $ (23.9 ) $ (11.2 ) $ 871.1 (a) Effective rate noted is as of June 30, 2020. Due to the Second New Term Loan Amendment, the rate effective for the third quarter will be a variable interest rate of 1, 3 or 6-month LIBOR, with a floor of 1.0%, plus a fixed margin of 7.5%. US Treasury Loan On July 7, 2020, the Company and certain of its subsidiaries, as guarantors (the “Term Guarantors”), entered into the UST Tranche A Term Loan Credit Agreement (the “Tranche A UST Credit Agreement”) with The Bank of New York Mellon, as administrative agent and collateral agent and the UST Tranche B Term Loan Credit Agreement (the “Tranche B UST Credit Agreement” and together with the Tranche A UST Credit Agreement, the “UST Credit Agreements”) with The Bank of New York Mellon, as administrative agent and collateral agent, pursuant to which the United State Treasury (“UST”) will lend an aggregate of $700.0 million to the Company pursuant to the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The obligations of the Company under the UST Credit Agreements are unconditionally guaranteed by the Term Guarantors. The UST Credit Agreements have maturity dates of September 30, 2024, with a single payment at maturity of the outstanding balance. The Tranche A UST Credit Agreement consists of a $300.0 million term loan and bears interest at a rate of Eurodollar rate plus a margin of 3.5% per annum, consisting of 1.50% in cash and the remainder paid-in-kind. Proceeds from the Tranche A UST Credit Agreement will primarily be used to meet the Company’s contractual obligations and maintain working capital. The Tranche B UST Credit Agreement consists of a $400.0 million term loan and bears interest at a rate of Eurodollar rate plus a margin of 3.5% per annum, paid in cash. Proceeds from the Tranche B UST Credit Agreement will be used predominantly for the acquisition of tractors and trailers. Each agreement requires that the Company must maintain minimum “Liquidity” (defined in the UST Credit Agreements to indicate that such amount is calculated as the Company’s unrestricted cash on hand plus the amount of “Availability” (as defined in the loan agreement for the ABL Facility) to the extent such Availability could be borrowed under the ABL Facility) of $125.0 million and a minimum Adjusted EBITDA commencing with the fiscal quarter ending December 31, 2021, to be not less than $100.0 million for the four quarters ending December 31, 2021, $150.0 million for the four quarters ending March 31, 2022, and $200.0 million thereafter. Obligations under the UST Credit Agreements are secured by a perfected first priority security interest in the escrow or controlled account and a perfected junior priority security interest (subject to permitted liens) in substantially all assets of the Company and the Term Guarantors, subject to certain exceptions. The Company issued as consideration related to the UST Credit Agreements as described in Item 2. The UST Credit Agreements will be funded through a series of draws made Adjusted EBITDA, defined in our UST Credit Agreements and the New Term Loan Agreement (defined below), as amended, as “Consolidated EBITDA,” is a measure that reflects our earnings before interest, taxes, depreciation, and amortization expense, and is further adjusted for, among other things, letter of credit fees, equity-based compensation expense, net gains or losses on property disposals, restructuring charges, transaction costs related to issuances of debt, non-recurring consulting fees, non-cash impairment charges, integration costs, severance, non-recurring charges , the gains or losses from permitted dispositions, discontinued operations, and certain non-cash expenses, charges and losses (provided that if any of such non-cash expenses, charges or losses represents an accrual or reserve for potential cash items in any future period, the cash payment in respect thereof in such future period will be subtracted from Adjusted EBITDA in such future period to the extent paid). Certain expenses that qualify as adjustments are capped at 10.0 % of the trailing-twelve-month Adjusted EBITDA, in aggregate. Adjustments subject to the 10.0 % cap include, but are not limited to, restructuring charges, integration costs, severance, and non-recurring charges. Additionally, all net gains from the disposition of properties are excluded from the definition of Adjusted EBITDA . T herefore any gains previously recognized in Adjusted EBITDA, as that term was previously defined in our SEC filings, in accordance with its definition in the Prior Term Loan Agreement, will not be included in the calculation of Adjusted EBITDA under the UST Credit Agreements. 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 $600.0 million term loan agreement (“New Term Loan”) 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 agreement governing (the “New Term Loan Agreement”) are unconditionally guaranteed by the Term Guarantors. 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 initially bore 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. 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. On April 7, 2020, the Company and certain of its subsidiaries entered into Amendment No. 1 (the “First New Term Loan Amendment”) to the New Term Loan Agreement as a result of expected future covenant and liquidity tightening due to unprecedented economic deterioration. Beginning the last two weeks of March, our industry and the economy at-large experienced an unexpected and significant decline in economic activity due to the impact of the 2019 novel coronavirus disease (“COVID-19”) and the resulting business shutdown and shelter-in-place orders made across North America by various governmental entities and private enterprises. The First New Term Loan Amendment principally provided additional liquidity allowing the Company to defer quarterly interest payments for the quarter ended March 31, 2020 and the quarter ending June 30, 2020 with almost all of such interest to be paid-in-kind. The First New Term Loan Amendment also provided for a waiver with respect to the Consolidated EBITDA financial covenant during each fiscal quarter during the fiscal year ending December 31, 2020. The interest rate was retroactively reset to a fixed 14% during the first six months of 2020. On July 7, 2020, the Company and the Term Guarantors entered into Amendment No. 2 (the “Second New Term Loan Amendment”) to the New Term Loan Agreement. The material terms of the Second New Term Loan Amendment include, among other things, a consent to the refinancing and conforming changes to the description of collateral set forth in the UST Credit Agreements, permanently capitalizing previously paid-in-kind interest on borrowings under the New Term Loan Agreement, that all future interest shall accrue at the Eurodollar rate plus a margin of 7.5% per annum and 6.5% per annum in the case of alternative base rate borrowings paid in cash and a requirement that the Company must maintain minimum Liquidity of $125.0 million and a minimum Consolidated EBITDA commencing with the fiscal quarter ending December 31, 2021, to be not less than $100.0 million for the four quarters ending December 31, 2021, $150.0 million for the four quarters ending March 31, 2022 and thereafter, $200.0 million, and an extension of the EBITDA covenant holiday to the fiscal quarter ending December 31, 2021. $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. 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. At our option, borrowings under the ABL Facility bear interest at either: (i) the applicable LIBOR rate plus 2.25%, as amended, or (ii) the base rate (as defined in the ABL Facility) plus 1.25%, as amended. Letter of credit fees equal to the applicable LIBOR margin in effect, 2.25% 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, 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. On July 7, 2020, the Company and certain of its subsidiaries entered into Amendment No. 6 (the “ABL Treasury Amendment”) in which the maturity date of the ABL was extended to January 9, 2024 and it included a consent to the refinancing and conforming changes to the description of collateral set forth in the UST Credit Agreements as well as an increase of 0.5% to applicable margin to borrowings under the ABL Facility (which increase is already reflected above). Liquidity Our principal sources of liquidity are cash and cash equivalents, available borrowings under our asset-based loan facility (the “ABL Facility”) and any prospective net cash flow from operations. As of June 30, 2020, our maximum availability under our ABL Facility was $61.3 million, and our managed accessibility was $20.4 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 $347.9 million of outstanding letters of credit. Our Managed Accessibility of $20.4 million represents the maximum amount we would access on the ABL Facility and is adjusted for eligible receivables plus eligible borrowing base cash measured at June 30, 2020. The credit agreement governing the ABL Facility permits adjustments from eligible borrowing base cash to restricted cash prior to the compliance measurement date of July 15, 2020. As of July 15, 2020, we moved $18.0 million of cash out of restricted cash, as permitted under the ABL Facility, which effectively put our cash and cash equivalents and Managed Accessibility to $302.6 million as of June 30, 2020. For the December 31, 2019 borrowing base certificate, which was filed in January of 2020, we transferred $29.0 million of cash into restricted cash to maintain the 10% threshold, as permitted under the ABL Facility, which transfer effectively put our cash and cash equivalents and Managed Accessibility to $80.4 million. The table below summarizes cash and cash equivalents and Managed Accessibility as of June 30, 2020 and December 31, 2019: (in millions) June 30, 2020 December 31, 2019 Cash and cash equivalents $ 264.2 $ 109.2 Amounts placed (into)/out of restricted cash subsequent to period end 18.0 (29.0 ) Managed Accessibility 20.4 0.2 Total cash and cash equivalents and Managed Accessibility $ 302.6 $ 80.4 Covenants The UST Credit Agreements and the New Term Loan Agreement include a financial covenant requirement for the Company to maintain a minimum Liquidity of $125.0 million until the first date on which Consolidated EBITDA on the last day of a fiscal quarter is greater than $200.0 million and a requirement that minimum Consolidated EBITDA commencing with the fiscal quarter ending December 31, 2021, to be not less than $100.0 million for the four quarters ending December 31, 2021, $150.0 million for the four quarters ending March 31, 2022 and $200.0 million thereafter. Risks and Uncertainties Regarding Liquidity and Compliance with Credit Facility Financial Covenants Based on the close of UST Credit Agreements and the Second New Term Loan Amendment, the only applicable financial covenant until December 31, 2021 is the Liquidity requirement of $125.0 million. With Liquidity as of June 30, 2020 of $302.6 million, proceeds from the UST Credit Agreements to be received in the third quarter 2020, and forecasted operating results, management concludes it probable the Company will meet covenant requirements for the next twelve months. Substantial doubt raised during the first quarter 2020 under the accounting requirements of ASC 205-40, Going Concern 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: June 30, 2020 December 31, 2019 (in millions) Book Value Fair Value Book Value Fair Value New Term Loan $ 578.9 $ 576.7 $ 559.9 $ 559.3 ABL Facility — — — — Lease financing obligations 226.0 222.9 231.3 233.7 Second A&R CDA 69.8 65.7 71.0 71.7 Total debt $ 874.7 $ 865.3 $ 862.2 $ 864.7 The fair values of the New Term Loan and Second Amended and Restated Contribution Deferral Agreement (the “Second A&R CDA”) were estimated based on observable prices (level two inputs for fair value measurements). The fair value of the lease financing obligations are estimated using a publicly traded secured loan with similar characteristics (level three input for fair value measurement). |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | 4. Leases Leases (in millions) Classification June 30, 2020 December 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 319.2 $ 386.0 Finance lease assets Net property and equipment 2.4 2.6 Total leased assets $ 321.6 $ 388.6 Liabilities Current Operating Current operating lease liabilities $ 114.0 $ 120.8 Finance Other current and accrued liabilities 0.9 0.2 Noncurrent Operating Operating lease liabilities 214.0 246.3 Finance Claims and other liabilities 3.2 3.3 Total lease liabilities $ 332.1 $ 370.6 Three Months Six Months Lease Cost (in millions) Classification 2020 2019 2020 2019 Operating lease cost (a) Purchased transportation; Fuel, operating expenses and supplies $ 40.4 $ 41.1 $ 83.5 $ 82.3 Short-term cost Purchased transportation; Fuel, operating expenses and supplies 2.1 3.4 4.1 6.9 Variable lease cost Purchased transportation; Fuel, operating expenses and supplies 1.8 1.8 4.2 3.3 Finance lease cost Amortization of leased assets Depreciation and amortization 0.0 0.1 0.1 0.3 Interest on lease liabilities Interest expense 0.1 0.1 0.2 0.2 Total lease cost $ 44.4 $ 46.5 $ 92.1 $ 93.0 (a) Operating lease cost represents 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 $ 76.6 $ 0.7 $ 77.3 2021 138.9 1.0 139.9 2022 90.2 0.6 90.8 2023 49.5 0.6 50.1 2024 18.2 0.7 18.9 After 2024 32.6 3.4 36.0 Total lease payments $ 406.0 $ 7.0 $ 413.0 Less: Imputed Interest 78.0 2.9 80.9 Present value of lease liabilities $ 328.0 $ 4.1 $ 332.1 Lease Term and Discount Rate (years and percent) Weighted-Average Remaining Lease Term Weighted-Average Discount Rate Operating leases 3.5 12.7% (a) Finance leases 8.0 10.3% (a) In an effort to preserve liquidity, certain equipment leases were modified during the second quarter to reduce short-term cash payments, resulting in an increase in payments in future periods. ROU assets and related liabilities were calculated using increased incremental borrowing rates as compared to prior periods due to a series of credit ratings downgrades. The increased incremental borrowing rates caused the ROU assets and lease liabilities to decrease, but this decrease was offset by an increase in future payment levels as a result of deferral agreements. Three Months Six Months Other Information (in millions) 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases (a) $ 17.5 $ 38.9 $ 55.5 $ 75.2 Operating cash flows from finance leases 0.1 0.1 0.2 0.2 Financing cash flows from finance leases 0.1 0.1 0.2 0.2 Leased assets obtained in exchange for new operating lease liabilities $ 6.3 $ 34.7 $ 10.0 $ 53.8 (a) Payments arising from operating leases are reported in operating activities on the statements of consolidated cash flows. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | 5. Employee Benefits Qualified and Nonqualified Defined Benefit Pension Plans The following table presents the components of our Company-sponsored pension plan costs for the three and six months ended June 30: Three Months Six Months (in millions) 2020 2019 2020 2019 Interest cost $ 9.6 $ 11.4 $ 19.2 $ 22.8 Expected return on plan assets (14.9 ) (14.3 ) (29.9 ) (28.6 ) Amortization of prior service credit (0.1 ) (0.1 ) (0.2 ) (0.2 ) Amortization of prior net pension loss 3.7 3.2 7.5 6.4 Total net periodic pension cost $ (1.7 ) $ 0.2 $ (3.4 ) $ 0.4 We have contributed $2.1 million to our Company-sponsored pension plans through June 30, 2020. Under the CARES Act, we are not required to make the remaining $29.3 million of contributions in 2020. These contributions will be made on January 1, 2021, but may be made sooner. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes Our effective tax rate for the three and six months ended June 30, 2020 was 16.8% and 19.4%, respectively, compared to (62.8%) and 0.8%, respectively, for the three and six months ended June 30, 2019. The significant items impacting the 2020 rates include a benefit from the reversal of liability for an uncertain tax position resulting from statute expiration, a benefit recognized due to application of the exception to the rules regarding intraperiod tax allocation, a benefit recognized due to application of the exception to the rules regarding intraperiod tax allocation, |
Loss Per Share
Loss Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Loss Per Share | 7. Loss Per Share Given our net loss position for each of the three and six months ended June 30, 2020 and June 30, 2019, we do not report dilutive securities for these periods. At June 30, 2020 and 2019, our anti-dilutive unvested shares, options, and stock units were approximately 436,000 and 325,000, respectively |
Commitments, Contingencies and
Commitments, Contingencies and Uncertainties | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Uncertainties | 8. 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 Complaint 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, 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. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Events The Company has evaluated all events that occur after the balance sheet date through the date when the financial statements were issued to determine if they must be reported. The Company determined that there were no reportable subsequent events to be disclosed other than the UST Credit Agreements discussed in Debt and Financing . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements include the accounts of YRC Worldwide and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. We report on a calendar year basis. The quarters of Holland and Reddaway consist of thirteen weeks that end on a Saturday either before or after the end of March, June and September, whereas all other companies’ quarters end on the natural calendar quarter end. |
Segments | Segments As noted in our 2019 annual report on Form 10-K, our Chief Operating Decision Maker began evaluating performance and business results, as well as making resource and operating decisions under the single segment view as a result of the business transformation that began during 2019. As such, a single segment view is presented in this Form 10-Q. See further details in our 2019 annual report as filed March 11, 2020. |
Revenue Disaggregation | Revenue Disaggregation We considered the disclosure requirements for revenue disaggregation guidance in ASC Topic 606, Revenue from Contracts with Customers Three Months Six Months Disaggregated Revenue (in millions) 2020 2019 2020 2019 LTL revenue $ 920.5 $ 1,176.1 1,971.2 $ 2,265.9 Other revenue 94.9 96.5 194.6 189.0 Total revenue $ 1,015.4 $ 1,272.6 $ 2,165.8 $ 2,454.9 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following table summarizes the fair value hierarchy of our financial assets and liabilities carried at fair value on a recurring basis as of June 30, 2020: Fair Value Measurement at June 30, 2020 (in millions) Total Carrying Value Quoted prices in active market (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Restricted amounts held in escrow-current $ 56.0 $ 56.0 $ — $ — Total assets at fair value $ 56.0 $ 56.0 $ — $ — Restricted amounts held in escrow are invested in money market accounts and are recorded at fair value based on quoted market prices. The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these instruments. |
Impact of Recently Issued Accounting Standards | Impact of Recently-Issued Accounting Standards While there are recently issued accounting standards that are applicable to the Company, none of these standards are expected to have a material impact on our financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 that move in our network. Three Months Six Months Disaggregated Revenue (in millions) 2020 2019 2020 2019 LTL revenue $ 920.5 $ 1,176.1 1,971.2 $ 2,265.9 Other revenue 94.9 96.5 194.6 189.0 Total revenue $ 1,015.4 $ 1,272.6 $ 2,165.8 $ 2,454.9 |
Summarizes the Fair Value Hierarchy of Financial Assets and Liabilities | The following table summarizes the fair value hierarchy of our financial assets and liabilities carried at fair value on a recurring basis as of June 30, 2020: Fair Value Measurement at June 30, 2020 (in millions) Total Carrying Value Quoted prices in active market (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Restricted amounts held in escrow-current $ 56.0 $ 56.0 $ — $ — Total assets at fair value $ 56.0 $ 56.0 $ — $ — |
Debt and Financing (Tables)
Debt and Financing (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | Our outstanding debt as of June 30, 2020 consisted of the following: As of June 30, 2020 (in millions) Par Value Discount Debt Issuance Costs Book Value Effective Interest Rate New Term Loan $ 613.5 $ (23.9 ) $ (10.7 ) $ 578.9 (a) 15.1 % ABL Facility — — — — Secured Second A&R CDA 24.8 — (0.1 ) 24.7 7.8 % Unsecured Second A&R CDA 45.2 — (0.1 ) 45.1 7.8 % Lease financing obligations 226.3 — (0.3 ) 226.0 16.6 % Total debt $ 909.8 $ (23.9 ) $ (11.2 ) $ 874.7 Current maturities of Unsecured Second A&R CDA (1.4 ) $ — $ — (1.4 ) Current maturities of lease financing obligations (2.2 ) $ — $ — (2.2 ) Long-term debt $ 906.2 $ (23.9 ) $ (11.2 ) $ 871.1 (a) Effective rate noted is as of June 30, 2020. Due to the Second New Term Loan Amendment, the rate effective for the third quarter will be a variable interest rate of 1, 3 or 6-month LIBOR, with a floor of 1.0%, plus a fixed margin of 7.5%. |
Schedule of Cash and Cash Equivalents and Managed Accessibility | The table below summarizes cash and cash equivalents and Managed Accessibility as of June 30, 2020 and December 31, 2019: (in millions) June 30, 2020 December 31, 2019 Cash and cash equivalents $ 264.2 $ 109.2 Amounts placed (into)/out of restricted cash subsequent to period end 18.0 (29.0 ) Managed Accessibility 20.4 0.2 Total cash and cash equivalents and Managed Accessibility $ 302.6 $ 80.4 |
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: June 30, 2020 December 31, 2019 (in millions) Book Value Fair Value Book Value Fair Value New Term Loan $ 578.9 $ 576.7 $ 559.9 $ 559.3 ABL Facility — — — — Lease financing obligations 226.0 222.9 231.3 233.7 Second A&R CDA 69.8 65.7 71.0 71.7 Total debt $ 874.7 $ 865.3 $ 862.2 $ 864.7 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Summary of Assets and Liabilities | Leases (in millions) Classification June 30, 2020 December 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 319.2 $ 386.0 Finance lease assets Net property and equipment 2.4 2.6 Total leased assets $ 321.6 $ 388.6 Liabilities Current Operating Current operating lease liabilities $ 114.0 $ 120.8 Finance Other current and accrued liabilities 0.9 0.2 Noncurrent Operating Operating lease liabilities 214.0 246.3 Finance Claims and other liabilities 3.2 3.3 Total lease liabilities $ 332.1 $ 370.6 |
Summary of Lease Cost | Three Months Six Months Lease Cost (in millions) Classification 2020 2019 2020 2019 Operating lease cost (a) Purchased transportation; Fuel, operating expenses and supplies $ 40.4 $ 41.1 $ 83.5 $ 82.3 Short-term cost Purchased transportation; Fuel, operating expenses and supplies 2.1 3.4 4.1 6.9 Variable lease cost Purchased transportation; Fuel, operating expenses and supplies 1.8 1.8 4.2 3.3 Finance lease cost Amortization of leased assets Depreciation and amortization 0.0 0.1 0.1 0.3 Interest on lease liabilities Interest expense 0.1 0.1 0.2 0.2 Total lease cost $ 44.4 $ 46.5 $ 92.1 $ 93.0 (a) Operating lease cost represents non-cash amortization of ROU assets and accretion of the discounted lease liabilities and is segregated on the statement of consolidated cash flows. |
Schedule of Remaining Maturities of Lease Liabilities | Remaining Maturities of Lease Liabilities Operating Leases Finance Leases Total 2020 $ 76.6 $ 0.7 $ 77.3 2021 138.9 1.0 139.9 2022 90.2 0.6 90.8 2023 49.5 0.6 50.1 2024 18.2 0.7 18.9 After 2024 32.6 3.4 36.0 Total lease payments $ 406.0 $ 7.0 $ 413.0 Less: Imputed Interest 78.0 2.9 80.9 Present value of lease liabilities $ 328.0 $ 4.1 $ 332.1 |
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 3.5 12.7% (a) Finance leases 8.0 10.3% (a) In an effort to preserve liquidity, certain equipment leases were modified during the second quarter to reduce short-term cash payments, resulting in an increase in payments in future periods. ROU assets and related liabilities were calculated using increased incremental borrowing rates as compared to prior periods due to a series of credit ratings downgrades. The increased incremental borrowing rates caused the ROU assets and lease liabilities to decrease, but this decrease was offset by an increase in future payment levels as a result of deferral agreements. |
Summary of Other Information | Three Months Six Months Other Information (in millions) 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases (a) $ 17.5 $ 38.9 $ 55.5 $ 75.2 Operating cash flows from finance leases 0.1 0.1 0.2 0.2 Financing cash flows from finance leases 0.1 0.1 0.2 0.2 Leased assets obtained in exchange for new operating lease liabilities $ 6.3 $ 34.7 $ 10.0 $ 53.8 (a) Payments arising from operating leases are reported in operating activities on the statements of consolidated cash flows. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Costs of Retirement Plans | The following table presents the components of our Company-sponsored pension plan costs for the three and six months ended June 30: Three Months Six Months (in millions) 2020 2019 2020 2019 Interest cost $ 9.6 $ 11.4 $ 19.2 $ 22.8 Expected return on plan assets (14.9 ) (14.3 ) (29.9 ) (28.6 ) Amortization of prior service credit (0.1 ) (0.1 ) (0.2 ) (0.2 ) Amortization of prior net pension loss 3.7 3.2 7.5 6.4 Total net periodic pension cost $ (1.7 ) $ 0.2 $ (3.4 ) $ 0.4 |
Description of Business - Addit
Description of Business - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Workforce Subject to Collective Bargaining Arrangements [Member] | Labor Force Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Percentage of workforce subject to collective bargaining agreements | 80.00% |
Basis of Presentation - Disaggr
Basis of Presentation - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue from External Customer [Line Items] | ||||
Operating Revenue | $ 1,015.4 | $ 1,272.6 | $ 2,165.8 | $ 2,454.9 |
LTL revenue | ||||
Revenue from External Customer [Line Items] | ||||
Operating Revenue | 920.5 | 1,176.1 | 1,971.2 | 2,265.9 |
Other revenue | ||||
Revenue from External Customer [Line Items] | ||||
Operating Revenue | $ 94.9 | $ 96.5 | $ 194.6 | $ 189 |
Basis of Presentation - Summari
Basis of Presentation - Summarizes the Fair Value Hierarchy of Financial Assets and Liabilities (Details) - Recurring [Member] $ in Millions | Jun. 30, 2020USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Restricted amounts held in escrow-current | $ 56 |
Total assets at fair value | 56 |
Level 1 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Restricted amounts held in escrow-current | 56 |
Total assets at fair value | $ 56 |
Debt and Financing - Schedule o
Debt and Financing - Schedule of Outstanding Debt (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Par Value | $ 909.8 | |
Discount | (23.9) | |
Debt Issuance Costs | (11.2) | |
Book Value | 874.7 | |
Book Value, Current Maturities | (3.6) | $ (4.1) |
Par Value, Excluding Current Maturities | 906.2 | |
Premium (Discount), Excluding Current Maturities | (23.9) | |
Debt Issuance Costs, Noncurrent | (11.2) | |
Book Value, Excluding Current Maturities | 871.1 | $ 858.1 |
New Term Loan | ||
Debt Instrument [Line Items] | ||
Par Value | 613.5 | |
Discount | (23.9) | |
Debt Issuance Costs | (10.7) | |
Book Value | $ 578.9 | |
Effective Interest Rate | 15.10% | |
ABL Facility | 2014 ABL Facility Credit Agreement | ||
Debt Instrument [Line Items] | ||
Par Value | $ 0 | |
Discount | 0 | |
Debt Issuance Costs | 0 | |
Book Value | 0 | |
Secured Second A&R CDA | ||
Debt Instrument [Line Items] | ||
Par Value | 24.8 | |
Discount | 0 | |
Debt Issuance Costs | (0.1) | |
Book Value | $ 24.7 | |
Effective Interest Rate | 7.80% | |
Unsecured Second A&R CDA | ||
Debt Instrument [Line Items] | ||
Par Value | $ 45.2 | |
Discount | 0 | |
Debt Issuance Costs | (0.1) | |
Book Value | $ 45.1 | |
Effective Interest Rate | 7.80% | |
Par Value, Current Maturities | $ (1.4) | |
Discount, Current Maturities | 0 | |
Deferred Issuance Costs, Current | 0 | |
Book Value, Current Maturities | (1.4) | |
Lease financing obligations | ||
Debt Instrument [Line Items] | ||
Par Value | 226.3 | |
Discount | 0 | |
Debt Issuance Costs | (0.3) | |
Book Value | $ 226 | |
Effective Interest Rate | 16.60% | |
Par Value, Current Maturities | $ (2.2) | |
Discount, Current Maturities | 0 | |
Deferred Issuance Costs, Current | 0 | |
Book Value, Current Maturities | $ (2.2) |
Debt and Financing - Schedule_2
Debt and Financing - Schedule of Outstanding Debt (Parenthetical) (Details) - London Interbank Offered Rate (LIBOR) - New Term Loan | 6 Months Ended |
Jun. 30, 2020 | |
Debt Instrument [Line Items] | |
Floor interest rate | 1.00% |
Basis spread on variable rate | 7.50% |
Debt and Financing - Additional
Debt and Financing - Additional Information (Details) - USD ($) | Apr. 01, 2022 | Jul. 07, 2020 | Sep. 11, 2019 | Jul. 31, 2020 | Dec. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | Sep. 30, 2020 | Feb. 13, 2014 |
2014 ABL Facility Credit Agreement | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment fee percentage | 0.25% | ||||||||||
2014 ABL Facility Credit Agreement | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment fee percentage | 0.375% | ||||||||||
2014 ABL Facility Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.25% | ||||||||||
2014 ABL Facility Credit Agreement | ABL Base Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1.25% | ||||||||||
ABL Facility | 2014 ABL Facility Credit Agreement | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 2.25% | ||||||||||
UST Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Common stock shares, issued | 15,943,753 | ||||||||||
Expenses qualifying as adjustment cap, percent | 10.00% | ||||||||||
Adjusted EBITDA expenses qualifying as adjustment cap, percent | 10.00% | ||||||||||
Cash, cash equivalents and managed accessibility | $ 302,600,000 | ||||||||||
UST Credit Agreement | Forecast | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Minimum adjusted EBITDA | $ 150,000,000 | $ 100,000,000 | |||||||||
Minimum adjusted EBITDA thereafter | $ 200,000,000 | ||||||||||
UST Credit Agreement | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount issued | $ 700,000,000 | ||||||||||
Debt instrument maturity date | Sep. 30, 2024 | ||||||||||
UST Credit Agreement | Subsequent Event | Tranche A | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from line of credit | $ 245,000,000 | ||||||||||
UST Credit Agreement | Subsequent Event | Tranche B | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from line of credit | $ 0 | ||||||||||
UST Credit Agreement | Subsequent Event | Tranche A | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount issued | $ 300,000,000 | ||||||||||
Percentage of paid in kind remainder | 1.50% | ||||||||||
UST Credit Agreement | Subsequent Event | Tranche A | Eurodollar | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Floor interest rate | 3.50% | ||||||||||
UST Credit Agreement | Subsequent Event | Tranche B | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount issued | $ 400,000,000 | ||||||||||
UST Credit Agreement | Subsequent Event | Tranche B | Eurodollar | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Floor interest rate | 3.50% | ||||||||||
UST Credit Agreement | Subsequent Event | 2014 ABL Facility Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility borrowing capacity | $ 125,000,000 | ||||||||||
Increase in interest rate | 0.50% | ||||||||||
New Term Loan Agreement | Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount issued | $ 600,000,000 | ||||||||||
Basis spread on variable rate | 7.50% | ||||||||||
Margin step down if certain EBITDA is achieved | 1.00% | ||||||||||
New Term Loan Agreement | Term Loan | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Adjusted EBITDA threshold for margin step down | $ 400,000,000 | ||||||||||
New Term Loan Agreement | Term Loan | London Interbank Offered Rate (LIBOR) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Floor interest rate | 1.00% | ||||||||||
First New Term Loan Amendment | Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 14.00% | ||||||||||
Second New Term Loan Amendment | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Minimum adjusted EBITDA | $ 125,000,000 | ||||||||||
Second New Term Loan Amendment | Forecast | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Minimum adjusted EBITDA | 150,000,000 | ||||||||||
Minimum adjusted EBITDA thereafter | 200,000,000 | ||||||||||
Second New Term Loan Amendment | Forecast | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Minimum adjusted EBITDA | 100,000,000 | ||||||||||
Second New Term Loan Amendment | Subsequent Event | Term Loan | Eurodollar | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 7.50% | ||||||||||
Second New Term Loan Amendment | Subsequent Event | Term Loan | Alternative Base Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 6.50% | ||||||||||
2014 Financing | 2014 ABL Facility Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount issued | $ 450,000,000 | ||||||||||
2014 ABL Facility Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Managed accessibility | 20,400,000 | $ 200,000 | |||||||||
Cash, cash equivalents and managed accessibility | 302,600,000 | 80,400,000 | |||||||||
2014 ABL Facility Credit Agreement | Letter of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Letters of credit outstanding, amount | 347,900,000 | ||||||||||
Restricted cash | 18,000,000 | ||||||||||
2014 ABL Facility Credit Agreement | ABL Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, total cash and availability | 61,300,000 | ||||||||||
Restricted cash | $ 29,000,000 | ||||||||||
Restricted cash threshold limit, percent | 10.00% | ||||||||||
UST Credit Agreements and the New Term Loan Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Minimum adjusted EBITDA | $ 125,000,000 | ||||||||||
UST Credit Agreements and the New Term Loan Agreement | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Minimum adjusted EBITDA | $ 125,000,000 | ||||||||||
UST Credit Agreements and the New Term Loan Agreement | Forecast | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Minimum adjusted EBITDA | $ 150,000,000 | ||||||||||
Minimum adjusted EBITDA thereafter | $ 200,000,000 | ||||||||||
UST Credit Agreements and the New Term Loan Agreement | Forecast | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Minimum adjusted EBITDA | $ 200,000,000 | $ 100,000,000 |
Debt and Financing - Schedule_3
Debt and Financing - Schedule of Cash and Cash Equivalents and Managed Accessibility (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Cash and cash equivalents | $ 264.2 | $ 109.2 |
2014 ABL Facility Credit Agreement | ||
Debt Instrument [Line Items] | ||
Cash and cash equivalents | 264.2 | 109.2 |
Amounts placed (into)/out of restricted cash subsequent to period end | 18 | (29) |
Managed Accessibility | 20.4 | 0.2 |
Total cash and cash equivalents and Managed Accessibility | $ 302.6 | $ 80.4 |
Debt and Financing - Schedule_4
Debt and Financing - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Book Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 874.7 | $ 862.2 |
Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 865.3 | 864.7 |
Term Loan | New Term Loan Agreement | Book Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 578.9 | 559.9 |
Term Loan | New Term Loan Agreement | Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 576.7 | 559.3 |
Lease financing obligations | Book Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 226 | 231.3 |
Lease financing obligations | Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 222.9 | 233.7 |
Second A&R CDA | Book Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 69.8 | 71 |
Second A&R CDA | Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 65.7 | $ 71.7 |
Leases - Summary of Assets and
Leases - Summary of Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 319.2 | $ 386 |
Finance lease assets | 2.4 | 2.6 |
Total leased assets | 321.6 | 388.6 |
Current operating lease liabilities | 114 | 120.8 |
Current finance lease liabilities | 0.9 | 0.2 |
Operating lease liabilities, noncurrent | 214 | 246.3 |
Finance lease liabilities, noncurrent | 3.2 | 3.3 |
Present value of lease liabilities | $ 332.1 | $ 370.6 |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 40.4 | $ 41.1 | $ 83.5 | $ 82.3 |
Short-term cost | 2.1 | 3.4 | 4.1 | 6.9 |
Variable lease cost | 1.8 | 1.8 | 4.2 | 3.3 |
Amortization of leased assets | 0 | 0.1 | 0.1 | 0.3 |
Interest on lease liabilities | 0.1 | 0.1 | 0.2 | 0.2 |
Total lease cost | $ 44.4 | $ 46.5 | $ 92.1 | $ 93 |
Leases - Schedule of Remaining
Leases - Schedule of Remaining Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2020 | $ 76.6 | |
2021 | 138.9 | |
2022 | 90.2 | |
2023 | 49.5 | |
2024 | 18.2 | |
After 2024 | 32.6 | |
Total lease payments | 406 | |
Less: Imputed Interest | 78 | |
Present value of lease liabilities | 328 | |
Finance Leases | ||
2020 | 0.7 | |
2021 | 1 | |
2022 | 0.6 | |
2023 | 0.6 | |
2024 | 0.7 | |
After 2024 | 3.4 | |
Total lease payments | 7 | |
Less: Imputed Interest | 2.9 | |
Present value of lease liabilities | 4.1 | |
Total | ||
2020 | 77.3 | |
2021 | 139.9 | |
2022 | 90.8 | |
2023 | 50.1 | |
2024 | 18.9 | |
After 2024 | 36 | |
Total lease payments | 413 | |
Less: Imputed Interest | 80.9 | |
Present value of lease liabilities | $ 332.1 | $ 370.6 |
Leases - Summary of Lease Term
Leases - Summary of Lease Term and Discount Rate (Details) | Jun. 30, 2020 |
Leases [Abstract] | |
Operating leases, Weighted Average Remaining Lease Term | 3 years 6 months |
Finance leases, Weighted Average Remaining Lease Term | 8 years |
Operating leases, Weighted Average Discount Rate | 12.70% |
Finance leases, Weighted Average Discount Rate | 10.30% |
Leases - Summary of Other Infor
Leases - Summary of Other Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Operating cash flows from operating leases | $ 17.5 | $ 38.9 | $ 55.5 | $ 75.2 |
Operating cash flows from finance leases | 0.1 | 0.1 | 0.2 | 0.2 |
Financing cash flows from finance leases | 0.1 | 0.1 | 0.2 | 0.2 |
Leased assets obtained in exchange for new operating lease liabilities | $ 6.3 | $ 34.7 | $ 10 | $ 53.8 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Components of Our Company-Sponsored Pension Plan Costs - (Details) - Qualified and Nonqualified - Defined Benefit Pension Plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 9.6 | $ 11.4 | $ 19.2 | $ 22.8 |
Expected return on plan assets | (14.9) | (14.3) | (29.9) | (28.6) |
Amortization of prior service credit | (0.1) | (0.1) | (0.2) | (0.2) |
Amortization of prior net pension loss | 3.7 | 3.2 | 7.5 | 6.4 |
Total net periodic pension cost | $ (1.7) | $ 0.2 | $ (3.4) | $ 0.4 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) - Qualified and Nonqualified - Defined Benefit Pension Plans - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jan. 01, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | $ 2.1 | |
Scenario Forecast | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan expected future employer contributions current fiscal year deferral CARES Act | $ 29.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 16.80% | (62.80%) | 19.40% | 0.80% |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Details) - shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Anti-Dilutive Unvested Shares and Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive unvested shares, options and stock units | 436,000 | 325,000 |