Document And Entity Information
Document And Entity Information - Jun. 30, 2015 - shares | Total |
Document and Entity Information [Abstract] | |
Entity Registrant Name | HUNT J B TRANSPORT SERVICES INC |
Trading Symbol | JBHT |
Document Type | 10-Q |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 116,250,852 |
Amendment Flag | false |
Entity Central Index Key | 728,535 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Document Period End Date | Jun. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating revenues, excluding fuel surcharge revenues | $ 1,360,631 | $ 1,268,636 | $ 2,624,541 | $ 2,420,985 |
Fuel surcharge revenues | 179,326 | 279,231 | 355,596 | 533,789 |
Total operating revenues | 1,539,957 | 1,547,867 | 2,980,137 | 2,954,774 |
Operating expenses: | ||||
Rents and purchased transportation | 730,851 | 775,485 | 1,424,535 | 1,480,900 |
Salaries, wages and employee benefits | 348,277 | 320,016 | 678,786 | 624,410 |
Fuel and fuel taxes | 84,891 | 116,999 | 166,704 | 236,949 |
Depreciation and amortization | 83,661 | 71,726 | 165,038 | 140,693 |
Operating supplies and expenses | 56,718 | 58,173 | 107,199 | 108,961 |
Insurance and claims | 18,207 | 19,886 | 35,635 | 35,718 |
General and administrative expenses, net of asset dispositions | 27,670 | 11,547 | 41,606 | 21,470 |
Operating taxes and licenses | 10,734 | 9,650 | 20,822 | 18,623 |
Communication and utilities | 5,213 | 5,155 | 10,857 | 10,513 |
Total operating expenses | 1,366,222 | 1,388,637 | 2,651,182 | 2,678,237 |
Operating income | 173,735 | 159,230 | 328,955 | 276,537 |
Net interest expense | 6,661 | 8,329 | 13,364 | 14,710 |
Earnings before income taxes | 167,074 | 150,901 | 315,591 | 261,827 |
Income taxes | 63,655 | 57,493 | 120,240 | 99,756 |
Net earnings | $ 103,419 | $ 93,408 | $ 195,351 | $ 162,071 |
Weighted average basic shares outstanding (in Shares) | 116,470 | 116,764 | 116,514 | 117,006 |
Basic earnings per share (in Dollars per share) | $ 0.89 | $ 0.80 | $ 1.68 | $ 1.39 |
Weighted average diluted shares outstanding (in Shares) | 117,811 | 118,541 | 117,805 | 118,740 |
Diluted earnings per share (in Dollars per share) | $ 0.88 | $ 0.79 | $ 1.66 | $ 1.36 |
Dividends declared per common share (in Dollars per share) | $ 0.21 | $ 0.20 | $ 0.42 | $ 0.40 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 5,586 | $ 5,961 |
Trade accounts receivable, net | 665,241 | 653,795 |
Prepaid expenses and other | 115,803 | 220,374 |
Total current assets | 786,630 | 880,130 |
Property and equipment, at cost | 3,881,077 | 3,719,757 |
Less accumulated depreciation | 1,254,973 | 1,237,225 |
Net property and equipment | 2,626,104 | 2,482,532 |
Other assets | 72,616 | 34,455 |
Total assets | 3,485,350 | 3,397,117 |
Current liabilities: | ||
Current portion of long-term debt | 250,000 | 250,000 |
Trade accounts payable | 341,520 | 325,838 |
Claims accruals | 98,423 | 96,719 |
Accrued payroll | 65,671 | 80,547 |
Other accrued expenses | 20,991 | 17,966 |
Total current liabilities | 776,605 | 771,070 |
Long-term debt | 643,202 | 683,539 |
Other long-term liabilities | 59,197 | 59,561 |
Deferred income taxes | 667,141 | 678,424 |
Stockholders' equity | 1,339,205 | 1,204,523 |
Total liabilities and stockholders' equity | $ 3,485,350 | $ 3,397,117 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net earnings | $ 195,351 | $ 162,071 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 165,038 | 140,693 |
Share-based compensation | 20,697 | 18,814 |
(Gain)/Loss on sale of revenue equipment and other | 147 | (5,110) |
Benefit from deferred income taxes | (11,283) | (17,672) |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (11,446) | (99,101) |
Other assets | 14,964 | 25,441 |
Trade accounts payable | 17,701 | 46,858 |
Income taxes payable or receivable | 73,073 | 7,500 |
Claims accruals | 1,704 | 13,000 |
Accrued payroll and other accrued expenses | (12,409) | 8,507 |
Net cash provided by operating activities | 453,537 | 301,001 |
Cash flows from investing activities: | ||
Additions to property and equipment | (381,681) | (438,013) |
Net proceeds from sale of equipment | 82,435 | 85,161 |
Changes in other assets | (20,097) | 9 |
Net cash used in investing activities | (319,343) | (352,843) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 499,642 | |
Payments on long-term debt | (250,000) | |
Proceeds from revolving lines of credit and other | 977,630 | 869,221 |
Payments on revolving lines of credit and other | (1,030,833) | (954,763) |
Purchase of treasury stock | (34,357) | (75,000) |
Stock option exercises and other | 1,193 | 4,611 |
Stock repurchased for payroll taxes | (955) | (520) |
Tax benefit of stock options exercised | 1,698 | 5,437 |
Dividends paid | (48,945) | (46,747) |
Net cash provided by/(used in) financing activities | (134,569) | 51,881 |
Net change in cash and cash equivalents | (375) | 39 |
Cash and cash equivalents at beginning of period | 5,961 | 5,831 |
Cash and cash equivalents at end of period | 5,586 | 5,870 |
Cash paid during the period for: | ||
Interest | 13,435 | 12,306 |
Income taxes | $ 54,816 | $ 93,853 |
Note 1 - General
Note 1 - General | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. General Basis of Presentation The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. We believe such statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair presentation of our financial position, results of operations and cash flows at the dates and for the periods indicated. Pursuant to the requirements of the Securities and Exchange Commission (SEC) applicable to quarterly reports on Form 10-Q, the accompanying financial statements do not include all disclosures required by GAAP for annual financial statements. While we believe the disclosures presented are adequate to make the information not misleading, these unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2014. Operating results for the periods presented in this report are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2015, or any other interim period. Our business is somewhat seasonal with slightly higher freight volumes typically experienced during August through early November in our full-load freight transportation business. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which supersedes virtually all existing revenue recognition guidance. The new standard requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. We have the option of using either a full retrospective or a modified retrospective approach when adopting this new standard. In July 2015, the FASB board elected to defer the effective date of ASU 2014-09 one year to interim and annual periods beginning after December 15, 2017. Early adoption is permitted after the original effective date of December 15, 2016. We are currently evaluating the alternative transition methods and the potential effects of the adoption of this update on our financial statements. In April 2015, the FASB issued ASU 2015-03, simplifying the Presentation of Debt Issuance Costs, which amends the current presentation of debt issuance costs in the financial statements. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, instead of as an asset. The amendments are to be applied retrospectively and are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, but early adoption is permitted. The adoption of the new guidance is not expected to have a material impact on the Company’s condensed consolidated financial statements. |
Note 2 - Earnings Per Share
Note 2 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 2. Earnings Per Share We compute basic earnings per share by dividing net earnings available to common stockholders by the actual weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflects the potential dilution that could occur if holders of unvested restricted and performance share units or vested and unvested stock options exercised or converted their holdings into common stock. The dilutive effect of restricted and performance share units and stock options was 1.3 million shares during the second quarter 2015, compared to 1.8 million shares during second quarter 2014. During the six months ended June 30, 2015 and 2014, the dilutive effect of restricted and performance share units and stock options was 1.3 million shares and 1.7 million shares, respectively. |
Note 3 - Share-based Compensati
Note 3 - Share-based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 3. Share-based Compensation The following table summarizes the components of our share-based compensation program expense (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Restricted share units: Pretax compensation expense $ 8,053 $ 6,671 $ 15,704 $ 14,430 Tax benefit 3,068 2,542 5,983 5,498 Restricted share unit expense, net of tax $ 4,985 $ 4,129 $ 9,721 $ 8,932 Performance share units: Pretax compensation expense $ 2,515 $ 2,139 $ 4,993 $ 4,254 Tax benefit 958 815 1,902 1,621 Performance share unit expense, net of tax $ 1,557 $ 1,324 $ 3,091 $ 2,633 Stock options: Pretax compensation expense $ - $ 33 $ - $ 130 Tax benefit - 13 - 50 Stock option expense, net of tax $ - $ 20 $ - $ 80 As of June 30, 2015, we had $43.8 million and $11.8 million of total unrecognized compensation expense related to restricted share units and performance share units, respectively, that is to be recognized over the remaining weighted-average period of approximately 3.9 years for restricted share units and 2.6 years for performance share units. During the six months ended June 30, 2015, we issued 38,992 shares for vested restricted share units and 58,600 shares as a result of stock option exercises. Of these totals, 24,783 shares for vested restricted share units and 6,400 shares resulting from stock option exercises were issued during the second quarter 2015. |
Note 4 - Financing Arrangements
Note 4 - Financing Arrangements | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 4. Financing Arrangements Outstanding borrowings under our current financing arrangements consist of the following (in millions): June 30, 2015 December 31, 2014 Senior revolving line of credit $ 141.0 $ 183.0 Senior notes, net of unamortized discount 752.2 750.5 Less current portion of long-term debt (250.0 ) (250.0 ) Total long-term debt $ 643.2 $ 683.5 Senior Revolving Line of Credit At June 30, 2015, we were authorized to borrow up to $500 million under a senior revolving line of credit, which is supported by a credit agreement with a group of banks and expires in August 2016. This senior credit facility allows us to request an increase in the total commitment by up to $250 million and to request a one-year extension of the maturity date. The applicable interest rate under this agreement is based on either the Prime Rate, the Federal Funds Rate or LIBOR, depending upon the specific type of borrowing, plus an applicable margin based on our credit rating and other fees. At June 30, 2015, we had $141.0 million outstanding at an average interest rate of 1.14% under this agreement. Seni or Notes Our senior notes consist of three separate issuances. The first issuance is $250 million of 3.375% senior notes, which mature in September 2015, with interest payments due semiannually in March and September of each year. The second and third issuances are $250 million of 2.40% senior notes due March 2019 and $250 million of 3.85% senior notes due March 2024, respectively, both of which were issued in March 2014 by J.B. Hunt Transport Services, Inc., a parent-level holding company with no significant assets or operations. The notes are guaranteed on a full and unconditional basis by a wholly-owned subsidiary. All other subsidiaries of the parent are minor. We registered these offerings and the sale of the notes under the Securities Act of 1933, pursuant to a shelf registration statement filed in February 2014. Interest payments under both notes are due semiannually in March and September of each year, beginning September 2014. At March 31, 2014 we had $100 million dollars outstanding on our 6.08% senior notes, which was paid in full in April 2014. All notes are unsecured obligations and rank equally with our existing and future senior unsecured debt. We may redeem for cash some or all of the notes based on a redemption price set forth in the note indenture. See Note 5, Derivative Financial Instruments, for terms of an interest rate swap entered into on the $250 million of 2.40% senior notes due March 2019. Our financing arrangements require us to maintain certain covenants and financial ratios. We were in compliance with all covenants and financial ratios at June 30, 2015. |
Note 5 - Derivative Financial I
Note 5 - Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 5. Derivative Financial Instruments We periodically utilize derivative instruments for hedging and non-trading purposes to manage exposure to changes in interest rates and to maintain an appropriate mix of fixed and variable-rate debt. At inception of a derivative contract, we document relationships between derivative instruments and hedged items, as well as our risk-management objective and strategy for undertaking various derivative transactions, and assess hedge effectiveness. If it is determined that a derivative is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, we discontinue hedge accounting prospectively. In March, 2014, we entered into a receive fixed-rate and pay variable-rate interest rate swap agreement with a notional amount of $250 million simultaneously with the issuance of our $250 million of 2.40% senior notes due March 2019, to effectively convert this fixed rate debt to a variable rate. The applicable interest rate under this agreement is based on LIBOR plus an established margin, resulting in an interest rate of 1.13% at June 30, 2015. The swap expires March 15, 2019, when the related senior notes are due. The fair value of this swap is recorded in other assets in our Condensed Consolidated Balance Sheet at June 30, 2015. See Note 7, Fair Value Measurements, for disclosure of fair value. This derivative meets the required criteria to be designated as a fair value hedge and as the specific terms and notional amount of this derivative instrument match those of the fixed-rate debt being hedged, this derivative instrument is assumed to perfectly hedge the related debt against changes in fair value due to changes in the benchmark interest rate. Accordingly, any change in the fair value of the interest rate swap to be recorded in earnings is offset by a corresponding change in the fair value of the related debt. |
Note 6 - Capital Stock
Note 6 - Capital Stock | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 6. Capital Stock On October 27, 2011, our Board of Directors authorized the purchase of $500 million of our common stock, of which $179 million was remaining at June 30, 2015. We purchased approximately 331,000 shares, or $28 million, of our common stock under our repurchase authorization during the three months ended June 30, 2015 and approximately 410,000, or $34.4 million, for the six months ended June 30, 2015. On April 23, 2015, our Board of Directors declared a regular quarterly dividend of $0.21 per common share, which was paid on May 22, 2015, to stockholders of record on May 8, 2015. On July 23, 2015, our Board of Directors declared a regular quarterly dividend of $0.21 per common share, which will be paid on August 14, 2015, to stockholders of record on July 31, 2015. |
Note 7 - Fair Value Measurement
Note 7 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 7. Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis Our assets and liabilities measured at fair value are based on the market approach valuation technique which considers prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. This valuation method is based on either quoted market prices (Level 1) or inputs, other than the quoted prices in active markets, that are observable either directly or indirectly (Level 2). The following are assets and liabilities measured at fair value on a recurring basis at June 30, 2015 (in millions): Asset/(Liability) Balance Input Level Trading investments $ 14.0 1 Interest rate swap $ 2.5 2 Senior notes $ (252.4 ) 2 Trading investments and the interest rate swap are classified in other assets in our Condensed Consolidated Balance Sheets and the senior notes are classified in long-term debt in our Condensed Consolidated Balance Sheets. Financial Instruments The carrying amount and estimated fair value at June 30, 2015, using the income method (Level 2), based on their net present value, discounted at our current borrowing rate, of our senior revolving line of credit and remaining senior notes not measured at fair value on a recurring basis, were $640.8 million and $656.0 million, respectively. The fair value of the interest rate swap has been measured using the income approach and level 2 input, which includes the relevant interest rate curves. The carrying amounts of all other instruments at June 30, 2015, approximate their fair value due to the short maturity of these instruments. |
Note 8 - Income Taxes
Note 8 - Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 8. Income Taxes At June 30, 2015, we had a total of $30.6 million in gross unrecognized tax benefits, which are a component of other long-term liabilities on our balance sheet. Of this amount, $19.9 million represents the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate. The total amount of accrued interest and penalties for such unrecognized tax benefits was $4.2 million at June 30, 2015. |
Note 9 - Legal Proceedings
Note 9 - Legal Proceedings | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 9. Legal Proceedings We are a defendant in certain class-action lawsuits in which the plaintiffs are current and former California-based drivers who allege claims for unpaid wages, failure to provide meal and rest periods, and other items. During the first half of 2014, the Court in the lead class-action granted Judgment in our favor with regard to all claims. The plaintiffs have appealed the case to the Ninth Circuit Court of Appeals and we are currently awaiting the appointment of a panel of judges. The overlapping claims in the remaining action have been stayed pending a decision in the lead class-action case. We cannot reasonably estimate at this time the possible loss or range of loss, if any, that may arise from these lawsuits. We are involved in certain other claims and pending litigation arising from the normal conduct of business. Based on present knowledge of the facts and, in certain cases, opinions of outside counsel, we believe the resolution of these claims and pending litigation will not have a material adverse effect on our financial condition, results of operations or liquidity. |
Note 10 - Business Segments
Note 10 - Business Segments | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 10. Business Segments We reported four distinct business segments during the three and six months ended June 30, 2015 and 2014. These segments included Intermodal (JBI), Dedicated Contract Services® (DCS), Integrated Capacity Solutions (ICS), and Truck (JBT). The operation of each of these businesses is described in Note 10, Segment Information Assets (Excludes intercompany accounts) As of June 30, 2015 December 31, 2014 JBI $ 1,872 $ 1,733 DCS 888 832 ICS 83 106 JBT 316 289 Other (includes corporate) 326 437 Total $ 3,485 $ 3,397 Operating Revenues Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 JBI $ 905 $ 931 $ 1,749 $ 1,766 DCS 367 348 712 670 ICS 174 173 337 336 JBT 97 101 188 193 Subtotal 1,543 1,553 2,986 2,965 Inter-segment eliminations (3 ) (5 ) (6 ) (10 ) Total $ 1,540 $ 1,548 $ 2,980 $ 2,955 Operating Income Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 JBI $ 118.6 $ 113.4 $ 222.9 $ 206.6 DCS 40.6 30.3 76.4 45.9 ICS 4.9 6.2 11.5 12.3 JBT 9.7 9.4 18.2 11.8 Other (includes corporate) (0.1 ) (0.1 ) - (0.1 ) Total $ 173.7 $ 159.2 $ 329.0 $ 276.5 Depreciation and Amortization Expense Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 JBI $ 36.4 $ 31.4 $ 71.5 $ 61.9 DCS 32.7 28.6 64.5 56.3 ICS 0.3 0.2 0.6 0.4 JBT 10.4 7.7 20.6 14.7 Other (includes corporate) 3.9 3.8 7.8 7.4 Total $ 83.7 $ 71.7 $ 165.0 $ 140.7 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. We believe such statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair presentation of our financial position, results of operations and cash flows at the dates and for the periods indicated. Pursuant to the requirements of the Securities and Exchange Commission (SEC) applicable to quarterly reports on Form 10-Q, the accompanying financial statements do not include all disclosures required by GAAP for annual financial statements. While we believe the disclosures presented are adequate to make the information not misleading, these unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2014. Operating results for the periods presented in this report are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2015, or any other interim period. Our business is somewhat seasonal with slightly higher freight volumes typically experienced during August through early November in our full-load freight transportation business. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which supersedes virtually all existing revenue recognition guidance. The new standard requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. We have the option of using either a full retrospective or a modified retrospective approach when adopting this new standard. In July 2015, the FASB board elected to defer the effective date of ASU 2014-09 one year to interim and annual periods beginning after December 15, 2017. Early adoption is permitted after the original effective date of December 15, 2016. We are currently evaluating the alternative transition methods and the potential effects of the adoption of this update on our financial statements. In April 2015, the FASB issued ASU 2015-03, simplifying the Presentation of Debt Issuance Costs, which amends the current presentation of debt issuance costs in the financial statements. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, instead of as an asset. The amendments are to be applied retrospectively and are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, but early adoption is permitted. The adoption of the new guidance is not expected to have a material impact on the Company’s condensed consolidated financial statements. |
Note 3 - Share-based Compensa16
Note 3 - Share-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Restricted share units: Pretax compensation expense $ 8,053 $ 6,671 $ 15,704 $ 14,430 Tax benefit 3,068 2,542 5,983 5,498 Restricted share unit expense, net of tax $ 4,985 $ 4,129 $ 9,721 $ 8,932 Performance share units: Pretax compensation expense $ 2,515 $ 2,139 $ 4,993 $ 4,254 Tax benefit 958 815 1,902 1,621 Performance share unit expense, net of tax $ 1,557 $ 1,324 $ 3,091 $ 2,633 Stock options: Pretax compensation expense $ - $ 33 $ - $ 130 Tax benefit - 13 - 50 Stock option expense, net of tax $ - $ 20 $ - $ 80 |
Note 4 - Financing Arrangemen17
Note 4 - Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | June 30, 2015 December 31, 2014 Senior revolving line of credit $ 141.0 $ 183.0 Senior notes, net of unamortized discount 752.2 750.5 Less current portion of long-term debt (250.0 ) (250.0 ) Total long-term debt $ 643.2 $ 683.5 |
Note 7 - Fair Value Measureme18
Note 7 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Asset/(Liability) Balance Input Level Trading investments $ 14.0 1 Interest rate swap $ 2.5 2 Senior notes $ (252.4 ) 2 |
Note 10 - Business Segments (Ta
Note 10 - Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Assets (Excludes intercompany accounts) As of June 30, 2015 December 31, 2014 JBI $ 1,872 $ 1,733 DCS 888 832 ICS 83 106 JBT 316 289 Other (includes corporate) 326 437 Total $ 3,485 $ 3,397 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Operating Revenues Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 JBI $ 905 $ 931 $ 1,749 $ 1,766 DCS 367 348 712 670 ICS 174 173 337 336 JBT 97 101 188 193 Subtotal 1,543 1,553 2,986 2,965 Inter-segment eliminations (3 ) (5 ) (6 ) (10 ) Total $ 1,540 $ 1,548 $ 2,980 $ 2,955 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Operating Income Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 JBI $ 118.6 $ 113.4 $ 222.9 $ 206.6 DCS 40.6 30.3 76.4 45.9 ICS 4.9 6.2 11.5 12.3 JBT 9.7 9.4 18.2 11.8 Other (includes corporate) (0.1 ) (0.1 ) - (0.1 ) Total $ 173.7 $ 159.2 $ 329.0 $ 276.5 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | Depreciation and Amortization Expense Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 JBI $ 36.4 $ 31.4 $ 71.5 $ 61.9 DCS 32.7 28.6 64.5 56.3 ICS 0.3 0.2 0.6 0.4 JBT 10.4 7.7 20.6 14.7 Other (includes corporate) 3.9 3.8 7.8 7.4 Total $ 83.7 $ 71.7 $ 165.0 $ 140.7 |
Note 2 - Earnings Per Share (De
Note 2 - Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 1.3 | 1.8 | 1.3 | 1.7 |
Note 3 - Share-based Compensa21
Note 3 - Share-based Compensation (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total | Total |
Restricted Stock Units (RSUs) [Member] | ||
Note 3 - Share-based Compensation (Details) [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | $ 43.8 | $ 43.8 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 328 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 24,783 | 38,992 |
Performance Shares [Member] | ||
Note 3 - Share-based Compensation (Details) [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | $ 11.8 | $ 11.8 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 219 days | |
Employee Stock Option [Member] | ||
Note 3 - Share-based Compensation (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 6,400 | 58,600 |
Note 3 - Share-based Compensa22
Note 3 - Share-based Compensation (Details) - Components of Share-based Compensation - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Restricted Stock Units (RSUs) [Member] | ||||
Restricted share units: | ||||
Pretax compensation expense | $ 8,053 | $ 6,671 | $ 15,704 | $ 14,430 |
Tax benefit | 3,068 | 2,542 | 5,983 | 5,498 |
Share-based compensation expense, net of tax | 4,985 | 4,129 | 9,721 | 8,932 |
Performance Shares [Member] | ||||
Restricted share units: | ||||
Pretax compensation expense | 2,515 | 2,139 | 4,993 | 4,254 |
Tax benefit | 958 | 815 | 1,902 | 1,621 |
Share-based compensation expense, net of tax | $ 1,557 | 1,324 | $ 3,091 | 2,633 |
Employee Stock Option [Member] | ||||
Restricted share units: | ||||
Pretax compensation expense | 33 | 130 | ||
Tax benefit | 13 | 50 | ||
Share-based compensation expense, net of tax | $ 20 | $ 80 |
Note 4 - Financing Arrangemen23
Note 4 - Financing Arrangements (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Senior Notes [Member] | |||
Note 4 - Financing Arrangements (Details) [Line Items] | |||
Unsecured Debt | $ 100 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.08% | ||
Senior Notes First Issuance [Member] | Senior Notes [Member] | |||
Note 4 - Financing Arrangements (Details) [Line Items] | |||
Unsecured Debt | $ 250 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.375% | ||
Senior Notes Second Issuance [Member] | Senior Notes [Member] | |||
Note 4 - Financing Arrangements (Details) [Line Items] | |||
Unsecured Debt | $ 250 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.40% | ||
Senior Notes Third Issuance [Member] | Senior Notes [Member] | |||
Note 4 - Financing Arrangements (Details) [Line Items] | |||
Unsecured Debt | $ 250 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | ||
Senior Debt Obligations [Member] | |||
Note 4 - Financing Arrangements (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity, Increase | $ 250 | ||
Senior Debt Obligations [Member] | Line of Credit [Member] | |||
Note 4 - Financing Arrangements (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 500 | ||
Long-term Line of Credit | $ 141 | $ 183 | |
Debt, Weighted Average Interest Rate | 1.14% |
Note 4 - Financing Arrangemen24
Note 4 - Financing Arrangements (Details) - Outstanding Borrowings - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Note 4 - Financing Arrangements (Details) - Outstanding Borrowings [Line Items] | ||
Less current portion of long-term debt | $ (250,000) | $ (250,000) |
Total long-term debt | 643,202 | 683,539 |
Senior Debt Obligations [Member] | Line of Credit [Member] | ||
Note 4 - Financing Arrangements (Details) - Outstanding Borrowings [Line Items] | ||
Senior revolving line of credit | 141,000 | 183,000 |
Senior Debt Obligations [Member] | Senior Notes [Member] | ||
Note 4 - Financing Arrangements (Details) - Outstanding Borrowings [Line Items] | ||
Senior notes, net of unamortized discount | $ 752,200 | $ 750,500 |
Note 5 - Derivative Financial25
Note 5 - Derivative Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2014 | Mar. 06, 2014 |
Senior Notes [Member] | |||
Note 5 - Derivative Financial Instruments (Details) [Line Items] | |||
Unsecured Debt | $ 100 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.08% | ||
Interest Rate Swap [Member] | Fair Value Hedging [Member] | |||
Note 5 - Derivative Financial Instruments (Details) [Line Items] | |||
Derivative, Notional Amount | $ 250 | ||
Interest Rate Swap [Member] | London Interbank Offered Rate (LIBOR) [Member] | Fair Value Hedging [Member] | |||
Note 5 - Derivative Financial Instruments (Details) [Line Items] | |||
Derivative, Variable Interest Rate | 1.13% | ||
Senior Notes Second Issuance [Member] | Senior Notes [Member] | |||
Note 5 - Derivative Financial Instruments (Details) [Line Items] | |||
Unsecured Debt | $ 250 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.40% |
Note 6 - Capital Stock (Details
Note 6 - Capital Stock (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 23, 2015 | Apr. 23, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Oct. 27, 2011 |
Note 6 - Capital Stock (Details) [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 500 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 179 | $ 179 | |||||
Treasury Stock, Shares, Acquired (in Shares) | 331,000 | 410,000 | |||||
Treasury Stock, Value, Acquired | $ 28 | $ 34.4 | |||||
Common Stock, Dividends, Per Share, Declared (in Dollars per share) | $ 0.21 | $ 0.21 | $ 0.20 | $ 0.42 | $ 0.40 | ||
Subsequent Event [Member] | |||||||
Note 6 - Capital Stock (Details) [Line Items] | |||||||
Common Stock, Dividends, Per Share, Declared (in Dollars per share) | $ 0.21 |
Note 7 - Fair Value Measureme27
Note 7 - Fair Value Measurements (Details) - Senior Notes [Member] - Fair Value, Measurements, Nonrecurring [Member] $ in Millions | Jun. 30, 2015USD ($) |
Note 7 - Fair Value Measurements (Details) [Line Items] | |
Long-term Debt | $ 640.8 |
Estimate of Fair Value Measurement [Member] | |
Note 7 - Fair Value Measurements (Details) [Line Items] | |
Long-term Debt, Fair Value | $ 656 |
Note 7 - Fair Value Measureme28
Note 7 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value $ in Millions | Jun. 30, 2015USD ($) |
Fair Value, Inputs, Level 1 [Member] | |
Note 7 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value [Line Items] | |
Trading investments | $ 14 |
Fair Value, Inputs, Level 2 [Member] | |
Note 7 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value [Line Items] | |
Interest rate swap | 2.5 |
Senior notes | $ (252.4) |
Note 8 - Income Taxes (Details)
Note 8 - Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 38.10% | 38.10% | 38.10% | 38.10% |
Unrecognized Tax Benefits (in Dollars) | $ 30.6 | $ 30.6 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate (in Dollars) | 19.9 | 19.9 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued (in Dollars) | $ 4.2 | $ 4.2 |
Note 10 - Business Segments (De
Note 10 - Business Segments (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting [Abstract] | ||||
Number of Reportable Segments | 4 | 4 | 4 | 4 |
Note 10 - Business Segments (31
Note 10 - Business Segments (Details) - Assets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 3,485,350 | $ 3,397,117 |
JBI [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 1,872,000 | 1,733,000 |
DCS [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 888,000 | 832,000 |
ICS [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 83,000 | 106,000 |
JBT [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 316,000 | 289,000 |
Corporate and Other [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 326,000 | $ 437,000 |
Note 10 - Business Segments (32
Note 10 - Business Segments (Details) - Operating Revenues - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 1,539,957 | $ 1,547,867 | $ 2,980,137 | $ 2,954,774 |
Operating Segments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 1,543,000 | 1,553,000 | 2,986,000 | 2,965,000 |
Intersegment Eliminations [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | (3,000) | (5,000) | (6,000) | (10,000) |
JBI [Member] | Operating Segments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 905,000 | 931,000 | 1,749,000 | 1,766,000 |
DCS [Member] | Operating Segments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 367,000 | 348,000 | 712,000 | 670,000 |
ICS [Member] | Operating Segments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 174,000 | 173,000 | 337,000 | 336,000 |
JBT [Member] | Operating Segments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 97,000 | $ 101,000 | $ 188,000 | $ 193,000 |
Note 10 - Business Segments (33
Note 10 - Business Segments (Details) - Operating Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating Income | $ 173,735 | $ 159,230 | $ 328,955 | $ 276,537 |
JBI [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating Income | 118,600 | 113,400 | 222,900 | 206,600 |
DCS [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating Income | 40,600 | 30,300 | 76,400 | 45,900 |
ICS [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating Income | 4,900 | 6,200 | 11,500 | 12,300 |
JBT [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating Income | 9,700 | 9,400 | $ 18,200 | 11,800 |
Corporate and Other [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating Income | $ (100) | $ (100) | $ (100) |
Note 10 - Business Segments (34
Note 10 - Business Segments (Details) - Depreciation and Amortization - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization expense | $ 83,661 | $ 71,726 | $ 165,038 | $ 140,693 |
JBI [Member] | Operating Segments [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization expense | 36,400 | 31,400 | 71,500 | 61,900 |
DCS [Member] | Operating Segments [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization expense | 32,700 | 28,600 | 64,500 | 56,300 |
ICS [Member] | Operating Segments [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization expense | 300 | 200 | 600 | 400 |
JBT [Member] | Operating Segments [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization expense | 10,400 | 7,700 | 20,600 | 14,700 |
Corporate and Other [Member] | Operating Segments [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization expense | $ 3,900 | $ 3,800 | $ 7,800 | $ 7,400 |