Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2016shares | |
Document Information [Line Items] | |
Entity Registrant Name | HUNT J B TRANSPORT SERVICES INC |
Entity Central Index Key | 728,535 |
Trading Symbol | jbht |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | Yes |
Entity Common Stock, Shares Outstanding (in shares) | 112,680,259 |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating revenues, excluding fuel surcharge revenues | $ 1,483,354 | $ 1,360,631 | $ 2,910,008 | $ 2,624,541 |
Fuel surcharge revenues | 131,672 | 179,326 | 233,730 | 355,596 |
Total operating revenues | 1,615,026 | 1,539,957 | 3,143,738 | 2,980,137 |
Operating expenses: | ||||
Rents and purchased transportation | 794,907 | 730,851 | 1,535,310 | 1,424,535 |
Salaries, wages and employee benefits | 371,969 | 348,277 | 734,480 | 678,786 |
Depreciation and amortization | 90,364 | 83,661 | 178,716 | 165,038 |
Fuel and fuel taxes | 71,489 | 84,891 | 130,903 | 166,704 |
Operating supplies and expenses | 56,495 | 56,718 | 111,031 | 107,199 |
General and administrative expenses, net of asset dispositions | 18,711 | 27,670 | 40,545 | 41,606 |
Insurance and claims | 19,094 | 18,207 | 36,522 | 35,635 |
Operating taxes and licenses | 11,365 | 10,734 | 22,491 | 20,822 |
Communication and utilities | 4,840 | 5,213 | 10,058 | 10,857 |
Total operating expenses | 1,439,234 | 1,366,222 | 2,800,056 | 2,651,182 |
Operating income | 175,792 | 173,735 | 343,682 | 328,955 |
Net interest expense | 6,420 | 6,661 | 12,862 | 13,364 |
Earnings before income taxes | 169,372 | 167,074 | 330,820 | 315,591 |
Income taxes | 64,361 | 63,655 | 125,711 | 120,240 |
Net earnings | $ 105,011 | $ 103,419 | $ 205,109 | $ 195,351 |
Weighted average basic shares outstanding (in shares) | 112,669 | 116,470 | 112,871 | 116,514 |
Basic earnings per share (in dollars per share) | $ 0.93 | $ 0.89 | $ 1.82 | $ 1.68 |
Weighted average diluted shares outstanding (in shares) | 113,761 | 117,811 | 113,882 | 117,805 |
Diluted earnings per share (in dollars per share) | $ 0.92 | $ 0.88 | $ 1.80 | $ 1.66 |
Dividends declared per common share (in dollars per share) | $ 0.22 | $ 0.21 | $ 0.44 | $ 0.42 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 11,277 | $ 5,566 |
Trade accounts receivable, net | 744,026 | 654,542 |
Prepaid expenses and other | 71,705 | 197,817 |
Total current assets | 827,008 | 857,925 |
Property and equipment, at cost | 4,128,542 | 4,019,451 |
Less accumulated depreciation | 1,361,627 | 1,318,122 |
Net property and equipment | 2,766,915 | 2,701,329 |
Other assets | 103,441 | 70,290 |
Total assets | 3,697,364 | 3,629,544 |
Current liabilities: | ||
Trade accounts payable | 343,652 | 340,332 |
Claims accruals | 115,628 | 104,220 |
Accrued payroll | 66,237 | 59,420 |
Other accrued expenses | 27,199 | 28,445 |
Total current liabilities | 552,716 | 532,417 |
Long-term debt | 957,574 | 998,003 |
Other long-term liabilities | 65,075 | 58,552 |
Deferred income taxes | 742,574 | 740,220 |
Stockholders' equity | 1,379,425 | 1,300,352 |
Total liabilities and stockholders' equity | $ 3,697,364 | $ 3,629,544 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net earnings | $ 205,109 | $ 195,351 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 178,716 | 165,038 |
Share-based compensation | 22,915 | 20,697 |
Loss on sale of revenue equipment and other | 1,030 | 147 |
Benefit from deferred income taxes | 2,354 | (11,283) |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (84,184) | (11,446) |
Other assets | 41,982 | 14,964 |
Trade accounts payable | 11,267 | 17,701 |
Income taxes payable or receivable | 72,041 | 73,073 |
Claims accruals | 11,408 | 1,704 |
Accrued payroll and other accrued expenses | 11,500 | (12,409) |
Net cash provided by operating activities | 474,138 | 453,537 |
Cash flows from investing activities: | ||
Additions to property and equipment | (351,507) | (381,681) |
Net proceeds from sale of equipment | 93,549 | 82,435 |
Changes in other assets | (7) | (20,097) |
Net cash used in investing activities | (257,965) | (319,343) |
Cash flows from financing activities: | ||
Proceeds from revolving lines of credit and other | 676,687 | 977,630 |
Payments on revolving lines of credit and other | (738,198) | (1,030,833) |
Purchase of treasury stock | (100,000) | (34,357) |
Stock option exercises and other | 1,342 | 1,193 |
Stock repurchased for payroll taxes | (975) | (955) |
Tax benefit of stock options exercised | 280 | 1,698 |
Dividends paid | (49,598) | (48,945) |
Net cash used in financing activities | (210,462) | (134,569) |
Net change in cash and cash equivalents | 5,711 | (375) |
Cash and cash equivalents at beginning of period | 5,566 | 5,961 |
Cash and cash equivalents at end of period | 11,277 | 5,586 |
Cash paid during the period for: | ||
Interest | 12,855 | 13,435 |
Income taxes | $ 49,039 | $ 54,816 |
Note 1 - General
Note 1 - General | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
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, 2015. 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, 2016, 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 August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred 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 January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments are to be applied by means of a cumulative-effect adjustment to the balance sheet and are effective for interim and annual periods beginning after December 15, 2017. With certain exceptions, early adoption is not permitted. The adoption of the new guidance is not expected to have a material impact on our financial statements. In February 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize a right-of-use asset and a lease liability for most leases in the balance sheet as well as other qualitative and quantitative disclosures. ASU 2016-02 is to be applied using a modified retrospective method and is effective for interim and annual periods beginning after December 15, 2018, but early adoption is permitted. We are currently evaluating the potential effects of the adoption of this update on our financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which amends and simplifies certain aspects of accounting for share-based payment award transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments are effective for interim and annual periods beginning after December 15, 2016, but early adoption is permitted. The application methods to be used in adoption vary with each component of the standard. We are currently evaluating the potential effects of the adoption of this update on our financial statements. Accounting Prono uncement Adopted in 201 6 In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, which amended 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 were effective for interim and annual periods beginning after December 15, 2015. We retroactively adopted ASU 2015-03 in 2016, and have reclassified all prior periods to be consistent with the amendments outlined in the ASU. The impact of the prior period reclassification was a $1.4 million reduction of current assets, a $5.6 million reduction of other assets, and a $7.0 million reduction of long-term debt at December 31, 2015. |
Note 2 - Earnings Per Share
Note 2 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
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 1.1 million shares during the second quarter 2016, compared to 1.3 million shares during second quarter 2015. During the six months ended June 30, 2016 and 2015, the dilutive effect of restricted and performance share units and stock options was 1.0 million shares and 1.3 million shares, respectively. |
Note 3 - Share-based Compensati
Note 3 - Share-based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
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, 2016 2015 2016 2015 Restricted share units: Pretax compensation expense $ 8,939 $ 8,053 $ 16,907 $ 15,704 Tax benefit 3,397 3,068 6,425 5,983 Restricted share unit expense, net of tax $ 5,542 $ 4,985 $ 10,482 $ 9,721 Performance share units: Pretax compensation expense $ 3,004 $ 2,515 $ 6,008 $ 4,993 Tax benefit 1,142 958 2,283 1,902 Performance share unit expense, net of tax $ 1,862 $ 1,557 $ 3,725 $ 3,091 As of June 30, 2016, we had $49.2 million and $13.4 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 3.8 years for restricted share units and 2.6 years for performance share units. During the six months ended June 30, 2016, we issued 34,100 shares for vested restricted share units and 2,000 shares as a result of stock option exercises. Of these totals, 15,177 shares for vested restricted share units were issued during the second quarter 2016. |
Note 4 - Financing Arrangements
Note 4 - Financing Arrangements | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 4. Financing Arrangements Outstanding borrowings, net of unamortized discount and debt issuance cost, under our current financing arrangements consist of the following (in millions): June 30, 2016 December 31, 2015 Senior revolving line of credit $ 87.0 $ 148.7 Senior notes 870.6 849.3 Total long-term debt $ 957.6 $ 998.0 Senior Revolving Line of Credit At June 30, 2016, 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 September 2020. 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, 2016, we had $87 million outstanding at an average interest rate of 1.65% under this agreement. Seni or Notes Our senior notes consist of three separate issuances. The first and second 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. Interest payments under both notes are due semiannually in March and September of each year, beginning September 2014. The third is $350 million of 3.30% senior notes due August 2022, issued in August 2015. Interest payments under this note are due semiannually in February and August of each year, beginning February 2016. All three senior notes were issued 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. 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 interest rate swaps entered into on the $250 million of 2.40% senior notes due March 2019 and the $350 million of 3.30% senior notes due August 2022. 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, 2016. |
Note 5 - Derivative Financial I
Note 5 - Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
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. We entered into receive fixed-rate and pay variable-rate interest rate swap agreements simultaneously with the issuance of our $250 million of 2.40% senior notes due March 2019 and $350 million of 3.30% senior notes due August 2022, to effectively convert this fixed-rate debt to variable-rate. The notional amounts of these interest rate swap agreements equal those of the corresponding fixed-rate debt. The applicable interest rates under these agreements is based on LIBOR plus an established margin, resulting in an interest rate of 1.50% for our $250 million of 2.40% senior notes and 1.98% for our $350 million of 3.30% senior notes at June 30, 2016. The swaps expire when the corresponding senior notes are due. The fair values of these swaps are recorded in other assets in our Condensed Consolidated Balance Sheet at June 30, 2016. See Note 7, Fair Value Measurements, for disclosure of fair value. These derivatives meet the required criteria to be designated as fair value hedges, and as the specific terms and notional amounts of these derivative instruments match those of the fixed-rate debt being hedged, these derivative instruments are 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 these interest rate swaps 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, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 6. Capital Stock On October 22, 2015, our Board of Directors authorized the purchase of $500 million of our common stock, of which $351 million was remaining at June 30, 2016. We purchased approximately 1,305,000 shares, or $100 million, of our common stock under our repurchase authorization during the six months ended June 30, 2016. On April 21, 2016, our Board of Directors declared a regular quarterly cash dividend of $0.22, which was paid May 20, 2016, to stockholders of record on May 6, 2016. On July 21, 2016, our Board of Directors declared a regular quarterly dividend of $0.22 per common share, which will be paid on August 19, 2016, to stockholders of record on August 5, 2016. |
Note 7 - Fair Value Measurement
Note 7 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
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 valuation techniques which consider prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. These valuation methods are based on either quoted market prices (Level 1) or inputs, other than 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, 2016 (in millions): Asset/(Liability) Balance Input Level Trading investments $ 14.5 1 Interest rate swap $ 26.8 2 Senior notes $ (622.4 ) 2 The fair value of trading investments has been measured using the market approach (Level 1) and reflect quoted market prices. The fair values of interest rate swaps and corresponding senior notes have been measured using the income approach (Level 2), which include relevant interest rate curve inputs. Trading investments and interest rate swaps 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, 2016, using the income approach (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 $335.2 million and $356.6 million, respectively. The carrying amounts of all other instruments at June 30, 2016, 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, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8. Income Taxes At June 30, 2016, we had a total of $33.7 million in gross unrecognized tax benefits, which are a component of other long-term liabilities on our Condensed Consolidated Balance Sheets. Of this amount, $21.9 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 $4.4 million at June 30, 2016. |
Note 9 - Legal Proceedings
Note 9 - Legal Proceedings | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
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 where it is currently pending. 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, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 10. Business Segments We reported four distinct business segments during the three and six months ended June 30, 2016 and 2015. These segments included Intermodal (JBI), Dedicated Contract Services® (DCS), Integrated Capacity Solutions (ICS), and Truckload (JBT). The operation of each of these businesses is described in Note 11, Segment Information Assets (Excludes intercompany accounts) As of June 30, 2016 December 31, 2015 JBI $ 1,951 $ 1,848 DCS 985 949 ICS 115 99 JBT 271 286 Other (includes corporate) 375 448 Total $ 3,697 $ 3,630 Operating Revenues Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 JBI $ 933 $ 905 $ 1,829 $ 1,749 DCS 383 367 741 712 ICS 204 174 387 337 JBT 98 97 194 188 Subtotal 1,618 1,543 3,151 2,986 Inter-segment eliminations (3 ) (3 ) (7 ) (6 ) Total $ 1,615 $ 1,540 $ 3,144 $ 2,980 Operating Income Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 JBI $ 105.6 $ 118.6 $ 208.8 $ 222.9 DCS 50.5 40.6 95.2 76.4 ICS 10.9 4.9 21.7 11.5 JBT 8.8 9.7 18.0 18.2 Other (includes corporate) - (0.1 ) - - Total $ 175.8 $ 173.7 $ 343.7 $ 329.0 Depreciation and Amortization Expense Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 JBI $ 40.0 $ 36.4 $ 79.0 $ 71.5 DCS 35.8 32.7 70.6 64.5 ICS 0.1 0.3 0.2 0.6 JBT 10.1 10.4 20.2 20.6 Other (includes corporate) 4.4 3.9 8.7 7.8 Total $ 90.4 $ 83.7 $ 178.7 $ 165.0 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2015. 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, 2016, 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 August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred 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 January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments are to be applied by means of a cumulative-effect adjustment to the balance sheet and are effective for interim and annual periods beginning after December 15, 2017. With certain exceptions, early adoption is not permitted. The adoption of the new guidance is not expected to have a material impact on our financial statements. In February 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize a right-of-use asset and a lease liability for most leases in the balance sheet as well as other qualitative and quantitative disclosures. ASU 2016-02 is to be applied using a modified retrospective method and is effective for interim and annual periods beginning after December 15, 2018, but early adoption is permitted. We are currently evaluating the potential effects of the adoption of this update on our financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which amends and simplifies certain aspects of accounting for share-based payment award transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments are effective for interim and annual periods beginning after December 15, 2016, but early adoption is permitted. The application methods to be used in adoption vary with each component of the standard. We are currently evaluating the potential effects of the adoption of this update on our financial statements. Accounting Prono uncement Adopted in 201 6 In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, which amended 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 were effective for interim and annual periods beginning after December 15, 2015. We retroactively adopted ASU 2015-03 in 2016, and have reclassified all prior periods to be consistent with the amendments outlined in the ASU. The impact of the prior period reclassification was a $1.4 million reduction of current assets, a $5.6 million reduction of other assets, and a $7.0 million reduction of long-term debt at December 31, 2015. |
Note 3 - Share-based Compensa16
Note 3 - Share-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
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, 2016 2015 2016 2015 Restricted share units: Pretax compensation expense $ 8,939 $ 8,053 $ 16,907 $ 15,704 Tax benefit 3,397 3,068 6,425 5,983 Restricted share unit expense, net of tax $ 5,542 $ 4,985 $ 10,482 $ 9,721 Performance share units: Pretax compensation expense $ 3,004 $ 2,515 $ 6,008 $ 4,993 Tax benefit 1,142 958 2,283 1,902 Performance share unit expense, net of tax $ 1,862 $ 1,557 $ 3,725 $ 3,091 |
Note 4 - Financing Arrangemen17
Note 4 - Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | June 30, 2016 December 31, 2015 Senior revolving line of credit $ 87.0 $ 148.7 Senior notes 870.6 849.3 Total long-term debt $ 957.6 $ 998.0 |
Note 7 - Fair Value Measureme18
Note 7 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Asset/(Liability) Balance Input Level Trading investments $ 14.5 1 Interest rate swap $ 26.8 2 Senior notes $ (622.4 ) 2 |
Note 10 - Business Segments (Ta
Note 10 - Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Assets (Excludes intercompany accounts) As of June 30, 2016 December 31, 2015 JBI $ 1,951 $ 1,848 DCS 985 949 ICS 115 99 JBT 271 286 Other (includes corporate) 375 448 Total $ 3,697 $ 3,630 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Operating Revenues Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 JBI $ 933 $ 905 $ 1,829 $ 1,749 DCS 383 367 741 712 ICS 204 174 387 337 JBT 98 97 194 188 Subtotal 1,618 1,543 3,151 2,986 Inter-segment eliminations (3 ) (3 ) (7 ) (6 ) Total $ 1,615 $ 1,540 $ 3,144 $ 2,980 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Operating Income Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 JBI $ 105.6 $ 118.6 $ 208.8 $ 222.9 DCS 50.5 40.6 95.2 76.4 ICS 10.9 4.9 21.7 11.5 JBT 8.8 9.7 18.0 18.2 Other (includes corporate) - (0.1 ) - - Total $ 175.8 $ 173.7 $ 343.7 $ 329.0 |
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, 2016 2015 2016 2015 JBI $ 40.0 $ 36.4 $ 79.0 $ 71.5 DCS 35.8 32.7 70.6 64.5 ICS 0.1 0.3 0.2 0.6 JBT 10.1 10.4 20.2 20.6 Other (includes corporate) 4.4 3.9 8.7 7.8 Total $ 90.4 $ 83.7 $ 178.7 $ 165.0 |
Note 1 - General (Details Textu
Note 1 - General (Details Textual) - December 31, 2015 [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Reduction of Current Assets as Result of ASU 2015-03 [Member] | |
Prior Period Reclassification Adjustment | $ 1.4 |
Reduction of Other Assets as Result of ASU 2015-03 [Member] | |
Prior Period Reclassification Adjustment | 5.6 |
Reduction of Long-term Debt as Result of ASU 2015-03 [Member] | |
Prior Period Reclassification Adjustment | $ 7 |
Note 2 - Earnings Per Share (De
Note 2 - Earnings Per Share (Details Textual) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 1.1 | 1.3 | 1 | 1.3 |
Note 3 - Share-based Compensa22
Note 3 - Share-based Compensation (Details Textual) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016USD ($)shares | Jun. 30, 2016USD ($)shares | |
Restricted Stock Units (RSUs) [Member] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 49.2 | $ 49.2 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 292 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | shares | 15,177 | 34,100 |
Performance Shares [Member] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 13.4 | $ 13.4 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 219 days | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | shares | 2,000 |
Note 3 - Components of Share-ba
Note 3 - Components of Share-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restricted Stock [Member] | ||||
Pretax compensation expense | $ 8,939 | $ 8,053 | $ 16,907 | $ 15,704 |
Tax benefit | 3,397 | 3,068 | 6,425 | 5,983 |
Allocated share-based compensation expense, net of tax | 5,542 | 4,985 | 10,482 | 9,721 |
Performance Shares [Member] | ||||
Pretax compensation expense | 3,004 | 2,515 | 6,008 | 4,993 |
Tax benefit | 1,142 | 958 | 2,283 | 1,902 |
Allocated share-based compensation expense, net of tax | $ 1,862 | $ 1,557 | $ 3,725 | $ 3,091 |
Note 4 - Financing Arrangemen24
Note 4 - Financing Arrangements (Details Textual) $ in Millions | Jun. 30, 2016USD ($) |
Line of Credit [Member] | Senior Debt Obligations [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 |
Long-term Line of Credit | $ 87 |
Debt, Weighted Average Interest Rate | 1.65% |
Senior Notes [Member] | Senior Notes, First Issuance [Member] | |
Unsecured Debt | $ 250 |
Debt Instrument, Interest Rate, Stated Percentage | 2.40% |
Senior Notes [Member] | Senior Notes, Second Issuance [Member] | |
Unsecured Debt | $ 250 |
Debt Instrument, Interest Rate, Stated Percentage | 3.85% |
Senior Notes [Member] | Senior Notes, Third Issuance [Member] | |
Unsecured Debt | $ 350 |
Debt Instrument, Interest Rate, Stated Percentage | 3.30% |
Senior Debt Obligations [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity Increase | $ 250 |
Note 4 - Outstanding Borrowings
Note 4 - Outstanding Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Senior Debt Obligations [Member] | Line of Credit [Member] | ||
Long-term Debt | $ 87 | $ 148.7 |
Senior Debt Obligations [Member] | Senior Notes [Member] | ||
Long-term Debt | 870.6 | 849.3 |
Long-term Debt | $ 957.6 | $ 998 |
Note 5 - Derivative Financial26
Note 5 - Derivative Financial Instruments (Details Textual) $ in Millions | Jun. 30, 2016USD ($) |
Senior Notes [Member] | Senior Notes, First Issuance [Member] | |
Unsecured Debt | $ 250 |
Debt Instrument, Interest Rate, Stated Percentage | 2.40% |
Senior Notes [Member] | Senior Notes, Third Issuance [Member] | |
Unsecured Debt | $ 350 |
Debt Instrument, Interest Rate, Stated Percentage | 3.30% |
Senior Notes, First Issuance [Member] | Fair Value Hedging [Member] | Interest Rate Swap [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Derivative, Variable Interest Rate | 1.50% |
Senior Notes, Third Issuance [Member] | Fair Value Hedging [Member] | Interest Rate Swap [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Derivative, Variable Interest Rate | 1.98% |
Note 6 - Capital Stock (Details
Note 6 - Capital Stock (Details Textual) - USD ($) | Jul. 21, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Apr. 21, 2016 | Oct. 22, 2015 |
Subsequent Event [Member] | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.22 | ||||||
Stock Repurchase Program, Authorized Amount | $ 500,000,000 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 351,000,000 | $ 351,000,000 | |||||
Treasury Stock, Shares, Acquired | 0 | 1,305,000 | |||||
Treasury Stock, Value, Acquired | $ 100,000,000 | ||||||
Common Stock, Quarterly Dividends, Per Share | $ 0.22 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.22 | $ 0.21 | $ 0.44 | $ 0.42 |
Note 7 - Fair Value Measureme28
Note 7 - Fair Value Measurements (Details Textual) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Senior Notes [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Long-term Debt, Fair Value | $ 356.6 | |
Senior Notes [Member] | Fair Value, Measurements, Recurring [Member] | ||
Long-term Debt | 335.2 | |
Long-term Debt | $ 957.6 | $ 998 |
Note 7 - Assets and Liabilities
Note 7 - Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring [Member] $ in Millions | Jun. 30, 2016USD ($) |
Fair Value, Inputs, Level 1 [Member] | |
Trading investments | $ 14.5 |
Fair Value, Inputs, Level 2 [Member] | |
Interest rate swap | 26.8 |
Senior notes | $ (622.4) |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Effective Income Tax Rate Reconciliation, Percent | 38.00% | 38.10% | 38.00% | 38.10% |
Unrecognized Tax Benefits | $ 33.7 | $ 33.7 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 21.9 | 21.9 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 4.4 | $ 4.4 |
Note 10 - Business Segments (De
Note 10 - Business Segments (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Number of Reportable Segments | 4 | 4 | 4 | 4 |
Note 10 - Assets (Details)
Note 10 - Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Operating Segments [Member] | JBI [Member] | ||
Assets | $ 1,951,000 | $ 1,848,000 |
Operating Segments [Member] | DCS [Member] | ||
Assets | 985,000 | 949,000 |
Operating Segments [Member] | ICS [Member] | ||
Assets | 115,000 | 99,000 |
Operating Segments [Member] | JBT [Member] | ||
Assets | 271,000 | 286,000 |
Operating Segments [Member] | Corporate and Other [Member] | ||
Assets | 375,000 | 448,000 |
Assets | $ 3,697,364 | $ 3,629,544 |
Note 10 - Operating Revenues (D
Note 10 - Operating Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Segments [Member] | JBI [Member] | ||||
Revenues | $ 933,000 | $ 905,000 | $ 1,829,000 | $ 1,749,000 |
Operating Segments [Member] | DCS [Member] | ||||
Revenues | 383,000 | 367,000 | 741,000 | 712,000 |
Operating Segments [Member] | ICS [Member] | ||||
Revenues | 204,000 | 174,000 | 387,000 | 337,000 |
Operating Segments [Member] | JBT [Member] | ||||
Revenues | 98,000 | 97,000 | 194,000 | 188,000 |
Operating Segments [Member] | ||||
Revenues | 1,618,000 | 1,543,000 | 3,151,000 | 2,986,000 |
Intersegment Eliminations [Member] | ||||
Revenues | (3,000) | (3,000) | (7,000) | (6,000) |
Revenues | $ 1,615,026 | $ 1,539,957 | $ 3,143,738 | $ 2,980,137 |
Note 10 - Operating Income (Det
Note 10 - Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
JBI [Member] | Operating Segments [Member] | ||||
Operating income | $ 105,600 | $ 118,600 | $ 208,800 | $ 222,900 |
DCS [Member] | Operating Segments [Member] | ||||
Operating income | 50,500 | 40,600 | 95,200 | 76,400 |
ICS [Member] | Operating Segments [Member] | ||||
Operating income | 10,900 | 4,900 | 21,700 | 11,500 |
JBT [Member] | Operating Segments [Member] | ||||
Operating income | 8,800 | 9,700 | 18,000 | 18,200 |
Corporate and Other [Member] | Operating Segments [Member] | ||||
Operating income | (100) | |||
Operating income | $ 175,792 | $ 173,735 | $ 343,682 | $ 328,955 |
Note 10 - Depreciation and Amor
Note 10 - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
JBI [Member] | Operating Segments [Member] | ||||
Depreciation and amortization | $ 40,000 | $ 36,400 | $ 79,000 | $ 71,500 |
DCS [Member] | Operating Segments [Member] | ||||
Depreciation and amortization | 35,800 | 32,700 | 70,600 | 64,500 |
ICS [Member] | Operating Segments [Member] | ||||
Depreciation and amortization | 100 | 300 | 200 | 600 |
JBT [Member] | Operating Segments [Member] | ||||
Depreciation and amortization | 10,100 | 10,400 | 20,200 | 20,600 |
Corporate and Other [Member] | Operating Segments [Member] | ||||
Depreciation and amortization | 4,400 | 3,900 | 8,700 | 7,800 |
Depreciation and amortization | $ 90,364 | $ 83,661 | $ 178,716 | $ 165,038 |