Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period Start Date | Jan. 1, 2017 | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | WERNER ENTERPRISES INC | |
Entity Central Index Key | 793,074 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 72,273,155 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating revenues | $ 519,508 | $ 498,681 | $ 1,020,729 | $ 981,483 |
Operating expenses: | ||||
Salaries, wages and benefits | 169,543 | 159,699 | 330,382 | 316,436 |
Fuel | 45,129 | 39,336 | 90,285 | 71,396 |
Supplies and maintenance | 40,058 | 42,417 | 78,290 | 89,532 |
Taxes and licenses | 21,638 | 21,826 | 42,424 | 42,813 |
Insurance and claims | 19,827 | 21,931 | 39,667 | 40,278 |
Depreciation | 53,705 | 50,904 | 109,041 | 101,068 |
Rent and purchased transportation | 124,634 | 127,303 | 251,059 | 245,279 |
Communications and utilities | 3,887 | 3,995 | 7,959 | 7,904 |
Other | 4,174 | 1,717 | 8,737 | 4,737 |
Total operating expenses | 482,595 | 469,128 | 957,844 | 919,443 |
Operating income | 36,913 | 29,553 | 62,885 | 62,040 |
Other expense (income): | ||||
Interest expense | 624 | 596 | 1,400 | 1,090 |
Interest income | (876) | (1,109) | (1,790) | (2,099) |
Other | 152 | 57 | 205 | 102 |
Total other income | (100) | (456) | (185) | (907) |
Income before income taxes | 37,013 | 30,009 | 63,070 | 62,947 |
Income taxes | 13,794 | 11,703 | 23,832 | 24,549 |
Net income | $ 23,219 | $ 18,306 | $ 39,238 | $ 38,398 |
Earnings per share: | ||||
Basic | $ 0.32 | $ 0.25 | $ 0.54 | $ 0.53 |
Diluted | 0.32 | 0.25 | 0.54 | 0.53 |
Dividends declared per share | $ 0.070 | $ 0.060 | $ 0.130 | $ 0.120 |
Weighted-average common shares outstanding: | ||||
Basic | 72,227 | 72,048 | 72,209 | 72,036 |
Diluted | 72,492 | 72,366 | 72,469 | 72,349 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income | $ 23,219 | $ 18,306 | $ 39,238 | $ 38,398 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 1,385 | (2,042) | 3,832 | (1,986) |
Change in fair value of interest rate swap | 20 | (170) | 234 | (905) |
Other comprehensive income (loss) | 1,405 | (2,212) | 4,066 | (2,891) |
Comprehensive income | $ 24,624 | $ 16,094 | $ 43,304 | $ 35,507 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 22,610 | $ 16,962 |
Accounts receivable, trade, less allowance of $8,434 and $9,183, respectively | 250,402 | 261,372 |
Other receivables | 15,654 | 15,168 |
Inventories and supplies | 11,589 | 12,768 |
Prepaid taxes, licenses and permits | 7,365 | 15,374 |
Income taxes receivable | 8,468 | 21,497 |
Other current assets | 30,979 | 29,987 |
Total current assets | 347,067 | 373,128 |
Property and equipment | 2,077,051 | 2,109,991 |
Less – accumulated depreciation | 746,822 | 747,353 |
Property and equipment, net | 1,330,229 | 1,362,638 |
Other non-current assets | 54,159 | 57,237 |
Total assets | 1,731,455 | 1,793,003 |
Current liabilities: | ||
Accounts payable | 70,717 | 66,618 |
Current portion of long-term debt | 0 | 20,000 |
Insurance and claims accruals | 75,001 | 83,404 |
Accrued payroll | 30,885 | 26,189 |
Other current liabilities | 22,309 | 18,650 |
Total current liabilities | 198,912 | 214,861 |
Long-term debt, net of current portion | 75,000 | 160,000 |
Other long-term liabilities | 15,321 | 16,711 |
Insurance and claims accruals, net of current portion | 110,610 | 113,875 |
Deferred income taxes | 300,082 | 292,769 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value, 200,000,000 shares authorized; 80,533,536 shares issued; 72,249,924 and 72,166,969 shares outstanding, respectively | 805 | 805 |
Paid-in capital | 102,553 | 101,035 |
Retained earnings | 1,114,351 | 1,084,796 |
Accumulated other comprehensive loss | (12,851) | (16,917) |
Treasury stock, at cost; 8,283,612 and 8,366,567 shares, respectively | (173,328) | (174,932) |
Total stockholders’ equity | 1,031,530 | 994,787 |
Total liabilities and stockholders’ equity | $ 1,731,455 | $ 1,793,003 |
Consolidated Condensed Balance5
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Allowance for doubtful trade accounts receivable | $ 8,434 | $ 9,183 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 80,533,536 | 80,533,536 |
Common stock, shares outstanding | 72,249,924 | 72,166,969 |
Treasury stock, shares | 8,283,612 | 8,366,567 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 39,238 | $ 38,398 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 109,041 | 101,068 |
Deferred income taxes | 6,252 | 23,621 |
Gain on disposal of property and equipment | (3,854) | (10,147) |
Non-cash equity compensation | 2,031 | 1,011 |
Insurance and claims accruals, net of current portion | (3,265) | (8,470) |
Other | (8,206) | (5,212) |
Changes in certain working capital items: | ||
Accounts receivable, net | 10,970 | 11,915 |
Other current assets | 18,177 | 5,711 |
Accounts payable | 1,759 | 3,627 |
Other current liabilities | 318 | 9,500 |
Net cash provided by operating activities | 172,461 | 171,022 |
Cash flows from investing activities: | ||
Additions to property and equipment | (126,051) | (313,080) |
Proceeds from sales of property and equipment | 60,076 | 52,554 |
Decrease in notes receivable | 11,490 | 8,297 |
Net cash used in investing activities | (54,485) | (252,229) |
Cash flows from financing activities: | ||
Repayments of short-term debt | (45,000) | 0 |
Repayments of long-term debt | (60,000) | 0 |
Proceeds from issuance of long-term debt | 0 | 70,000 |
Change in net checks issued in excess of cash balances | 0 | 6,941 |
Dividends on common stock | (8,663) | (8,643) |
Tax withholding related to net share settlements of restricted stock awards | (360) | (559) |
Stock options exercised | 988 | 185 |
Excess tax benefits from equity compensation | 0 | (16) |
Payment of notes payable | 0 | (3,117) |
Net cash used in financing activities | (113,035) | 64,791 |
Effect of exchange rate fluctuations on cash | 707 | (180) |
Net increase (decrease) in cash and cash equivalents | 5,648 | (16,596) |
Cash and cash equivalents, beginning of period | 16,962 | 31,833 |
Cash and cash equivalents, end of period | 22,610 | 15,237 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 1,512 | 1,072 |
Income taxes paid | 4,468 | 4,238 |
Supplemental schedule of non-cash investing activities: | ||
Notes receivable issued upon sale of property and equipment | 2,599 | 18,743 |
Change in fair value of interest rate swap | 234 | (905) |
Property and equipment acquired included in accounts payable | 4,214 | 11,904 |
Property and equipment disposed included in other receivables | $ 103 | $ 606 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, “Inventory: Simplifying the Measurement of Inventory,” which requires inventory to be recorded at the lower of cost and net realizable value (instead of lower of cost or market). The Company adopted ASU No. 2015-11 as of January 1, 2017. Upon adoption, this update had no effect on our consolidated financial position, results of operations or cash flows. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting,” to simplify several aspects of the accounting for share-based payment transactions. The new update requires excess tax benefits and tax deficiencies to be recorded in the consolidated statements of income as a component of income tax expense when share-based awards vest or are settled. The update also eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the consolidated statements of cash flows. The standard also provides an accounting policy election to account for forfeitures as they occur and now allows for withholding up to the maximum statutory tax rate on certain share-based awards without triggering liability accounting. The Company adopted ASU No. 2016-09 as of January 1, 2017. Upon adoption, share-based payment excess tax benefits and tax deficiencies are recognized in the consolidated statements of income as a component of income tax expense, rather than additional paid-in capital as previously recognized. The Company elected to report excess tax benefits as operating activities in the consolidated statements of cash flows on a prospective basis, and prior period amounts have not been adjusted. The Company also elected to use actual forfeitures to determine the amount of share-based compensation expense to be recognized. This change was applied on a modified retrospective basis and resulted in a $0.3 million decrease to retained earnings in first quarter 2017. |
Credit Facilities
Credit Facilities | 6 Months Ended |
Jun. 30, 2017 | |
Line of Credit Facility [Abstract] | |
Credit Facilities | Credit Facilities As of June 30, 2017 , we had unsecured committed credit facilities with three banks as well as a term commitment with one of these banks. We had with Wells Fargo Bank, N.A., a $100.0 million credit facility which will expire on July 12, 2020 , and a $75.0 million term commitment with principal due and payable on September 15, 2019 . We had an unsecured line of credit of $75.0 million with U.S. Bank, N.A., which will expire on July 13, 2020 . We also had a $75.0 million credit facility with BMO Harris Bank, N.A., which will expire on March 5, 2020 . Borrowings under these credit facilities and term note bear variable interest based on the London Interbank Offered Rate (“LIBOR”). As of June 30, 2017 , and December 31, 2016 , our outstanding debt totaled $75.0 million and $180.0 million , respectively. We had $75.0 million outstanding under the term commitment at a variable rate of 1.76% as of June 30, 2017 , which is effectively fixed at 2.5% with an interest rate swap agreement. The $325.0 million of borrowing capacity under our credit facilities at June 30, 2017 , is further reduced by $25.1 million in stand-by letters of credit under which we are obligated. Each of the debt agreements includes, among other things, financial covenants requiring us (i) not to exceed a maximum ratio of total debt to total capitalization and/or (ii) not to exceed a maximum ratio of total funded debt to earnings before interest, income taxes, depreciation and amortization (as such terms are defined in each credit facility). At June 30, 2017 , we were in compliance with these covenants. At June 30, 2017 , the aggregate future maturities of long-term debt by year are as follows (in thousands): 2017 $ — 2018 — 2019 75,000 2020 — 2021 — Total $ 75,000 The carrying amounts of our long-term debt approximate fair value due to the duration of the notes and the variable interest rates. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We accrued interest expense of $48 thousand and $75 thousand during the three-month periods ended June 30, 2017 and June 30, 2016 , respectively, and $103 thousand and $127 thousand during the six-month periods ended June 30, 2017 and June 30, 2016 , respectively, excluding the reversal of accrued interest related to adjustments for the remeasurement of uncertain tax positions. Our total gross liability for unrecognized tax benefits at June 30, 2017 , is $5.0 million . If recognized, $3.2 million of unrecognized tax benefits would impact our effective tax rate. Interest of $0.9 million has been reflected as a component of the total liability. We expect no other significant increases or decreases for uncertain tax positions during the next twelve months. We file U.S. federal income tax returns, as well as income tax returns in various states and several foreign jurisdictions. The years 2013 through 2016 are open for examination by the Internal Revenue Service (“IRS”), and various years are open for examination by state and foreign tax authorities. State and foreign jurisdictional statutes of limitations generally range from three to four years. |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As of June 30, 2017 , we have committed to property and equipment purchases of approximately $121.4 million . We are involved in certain claims and pending litigation arising in the ordinary course of business. The majority of these claims relate to bodily injury, property damage, cargo and workers’ compensation incurred in the transportation of freight, as well as certain class action litigation related to personnel and employment matters. We accrue for the uninsured portion of contingent losses from these and other pending claims when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on the knowledge of the facts, management believes the resolution of claims and pending litigation, taking into account existing reserves, will not have a material adverse effect on our consolidated financial statements. Moreover, the results of complex legal proceedings are difficult to predict and our view of these matters may change in the future as the litigation and related events unfold. We are involved in class action litigation in the U.S. District Court for the District of Nebraska, in which the plaintiffs allege that we owe drivers for unpaid wages under the Fair Labor Standards Act (FLSA) and the Nebraska Wage Payment and Collection Act and that we failed to pay minimum wage per hour for drivers in our student driver training program, related to short break time and sleeper berth time. The period covered by this class action suit is August 2008 through March 2014. The case was tried to a jury in May 2017, resulting in a verdict of $0.8 million in plaintiffs’ favor on the short break matter and a verdict in our favor on the sleeper berth matter. As of June 30, 2017 , we had accrued for the jury’s award in the short break matter and had not accrued for the sleeper berth matter. We are also involved in certain class action litigation in which the plaintiffs allege claims for failure to provide meal and rest breaks, unpaid wages, unauthorized deductions and other items. Based on the knowledge of the facts, management does not currently believe the outcome of these class actions is likely to have a material adverse effect on our financial position or results of operations. However, the final disposition of these matters and the impact of such final dispositions cannot be determined at this time. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and restricted stock awards. There are no differences in the numerators of our computations of basic and diluted earnings per share for any period presented. The computation of basic and diluted earnings per share is shown below (in thousands, except per share amounts). Three Months Ended Six Months Ended 2017 2016 2017 2016 Net income $ 23,219 $ 18,306 $ 39,238 $ 38,398 Weighted average common shares outstanding 72,227 72,048 72,209 72,036 Dilutive effect of stock-based awards 265 318 260 313 Shares used in computing diluted earnings per share 72,492 72,366 72,469 72,349 Basic earnings per share $ 0.32 $ 0.25 $ 0.54 $ 0.53 Diluted earnings per share $ 0.32 $ 0.25 $ 0.54 $ 0.53 There were no options to purchase shares of common stock that were outstanding during the periods indicated above that were excluded from the computation of diluted earnings per share because the option purchase price was greater than the average market price of the common shares during the period. Performance awards are excluded from the calculation of dilutive potential common shares until the threshold performance conditions have been satisfied. |
Equity Compensation
Equity Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Equity Compensation [Abstract] | |
Equity Compensation | Equity Compensation The Werner Enterprises, Inc. Amended and Restated Equity Plan (the “Equity Plan”), approved by the Company’s shareholders, provides for grants to employees and non-employee directors of the Company in the form of nonqualified stock options, restricted stock and units (“restricted awards”), performance awards, and stock appreciation rights. The Board of Directors or the Compensation Committee of our Board of Directors determines the terms of each award, including the type, recipients, number of shares subject to and vesting conditions of each award. No awards of stock appreciation rights have been issued under the Equity Plan to date. The maximum number of shares of common stock that may be awarded under the Equity Plan is 20,000,000 shares. The maximum aggregate number of shares that may be awarded to any one person in any one calendar year under the Equity Plan is 500,000 . As of June 30, 2017 , there were 7,343,383 shares available for granting additional awards. Equity compensation expense is included in salaries, wages and benefits within the Consolidated Statements of Income. As of June 30, 2017 , the total unrecognized compensation cost related to non-vested equity compensation awards was approximately $7.3 million and is expected to be recognized over a weighted average period of 2.3 years . The following table summarizes the equity compensation expense and related income tax benefit recognized in the Consolidated Statements of Income (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Stock options: Pre-tax compensation expense $ 1 $ 4 $ 3 $ 9 Tax benefit — 2 1 4 Stock option expense, net of tax $ 1 $ 2 $ 2 $ 5 Restricted awards: Pre-tax compensation expense $ 866 $ 800 $ 1,499 $ 930 Tax benefit 340 313 585 363 Restricted stock expense, net of tax $ 526 $ 487 $ 914 $ 567 Performance awards: Pre-tax compensation expense $ 306 $ 530 $ 589 $ 111 Tax benefit 120 206 230 43 Performance award expense, net of tax $ 186 $ 324 $ 359 $ 68 During the six-month period ended June 30, 2016, we recorded a $1.8 million reduction in compensation expense and a $0.7 million reduction of tax benefit resulting from a change in forfeiture estimates for certain restricted and performance awards, most of which relate to a previously disclosed executive retirement that occurred in February 2016. We do not have a formal policy for issuing shares upon an exercise of stock options or vesting of restricted and performance awards. Such shares are generally issued from treasury stock. From time to time, we repurchase shares of our common stock, the timing and amount of which depends on market and other factors. Historically, the shares acquired from such repurchases have provided us with sufficient quantities of stock to issue for equity compensation. Based on current treasury stock levels, we do not expect to repurchase additional shares specifically for equity compensation during 2017 . Stock Options Stock options are granted at prices equal to the market value of the common stock on the date the option award is granted. Option awards currently outstanding become exercisable in installments from 24 to 72 months after the date of grant. The options are exercisable over a period not to exceed ten years, one day from the date of grant. The following table summarizes stock option activity for the six months ended June 30, 2017 : Number of Options (in thousands) Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at beginning of period 171 $ 18.19 Granted — — Exercised (57 ) 17.46 Forfeited — — Expired — — Outstanding at end of period 114 18.55 1.71 $ 1,235 Exercisable at end of period 110 18.39 1.60 $ 1,201 We did not grant any stock options during the six-month periods ended June 30, 2017 and June 30, 2016 . The fair value of stock option grants is estimated using a Black-Scholes valuation model. The total intrinsic value of stock options exercised was $636 thousand and $71 thousand for the six -month periods ended June 30, 2017 and June 30, 2016 , respectively. Restricted Awards Restricted stock entitles the holder to shares of common stock when the award vests. Restricted stock units entitle the holder to a combination of cash or stock equal to the value of common stock when the unit vests. The value of these shares may fluctuate according to market conditions and other factors. Restricted awards currently outstanding vest over periods ranging from 12 to 84 months from the grant date of the award. The restricted awards do not confer any voting or dividend rights to recipients until such shares vest and do not have any post-vesting sales restrictions. The following table summarizes restricted award activity for the six months ended June 30, 2017 : Number of Restricted Awards (in thousands) Weighted Average Grant Date Fair Value ($) Nonvested at beginning of period 293 $ 25.98 Granted 80 26.85 Vested (4 ) 25.55 Forfeited (9 ) 26.98 Nonvested at end of period 360 26.15 We estimate the fair value of restricted awards based upon the market price of the underlying common stock on the date of grant, reduced by the present value of estimated future dividends because the awards are not entitled to receive dividends prior to vesting. Our estimate of future dividends is based on the most recent quarterly dividend rate at the time of grant, adjusted for any known future changes in the dividend rate. Cash settled restricted stock units are recorded as a liability within the Consolidated Balance Sheets and are adjusted to fair value each reporting period. The total fair value of previously granted restricted awards vested during the six-month period ended June 30, 2017 was $107 thousand and for the six-month period ended June 30, 2016 was $54 thousand . When restricted awards vest, we withhold shares based on the closing stock price on the vesting date to settle the employees’ statutory obligation for the applicable income and other employment taxes. The shares withheld to satisfy the tax withholding obligations are recorded as treasury stock. Performance Awards Performance awards entitle the recipient to shares of common stock upon attainment of performance objectives as pre-established by the Compensation Committee. If the performance objectives are achieved, performance awards currently outstanding vest, subject to continued employment, over periods ranging from 12 to 60 months from the grant date of the award. The performance awards do not confer any voting or dividend rights to recipients until such shares vest and do not have any post-vesting sales restrictions. The following table summarizes performance award activity for the six months ended June 30, 2017 : Number of Performance Awards (in thousands) Weighted Average Grant Date Fair Value ($) Nonvested at beginning of period 124 $ 27.33 Granted 69 26.89 Vested (35 ) 27.07 Forfeited — — Nonvested at end of period 158 27.20 The 2017 performance awards are earned based upon the level of attainment by the Company of specified performance objectives related to cumulative diluted earnings per share for the two-year period from January 1, 2017 to December 31, 2018. Shares earned based on cumulative diluted earnings per share may be capped based on absolute total shareholder return during the three-year period ended December 31, 2019. The 2017 performance awards will vest in one installment on the third anniversary from the grant date. In February 2017, the Compensation Committee determined the 2016 fiscal year results upon which the 2016 performance awards were based fell below the threshold level; thus, no shares of common stock were earned, and the shares not earned were included in the 2016 forfeited shares. We estimate the fair value of performance awards based upon the market price of the underlying common stock on the date of grant, reduced by the present value of estimated future dividends because the awards are not entitled to receive dividends prior to vesting. Our estimate of future dividends is based on the most recent quarterly dividend rate at the time of grant, adjusted for any known future changes in the dividend rate. The vesting date fair value of performance awards that vested during the six -month periods ended June 30, 2017 and June 30, 2016 was $1.0 million and $1.6 million , respectively. We withhold shares based on the closing stock price on the vesting date to settle the employees’ statutory obligation for the applicable income and other employment taxes. The shares withheld to satisfy the tax withholding obligations are recorded as treasury stock. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have two reportable segments – Truckload Transportation Services (“Truckload”) and Werner Logistics. The Truckload segment consists of three operating units, One-Way Truckload, Dedicated and Temperature Controlled. These units are aggregated because they have similar economic characteristics and meet the other aggregation criteria described in the accounting guidance for segment reporting. One-Way Truckload is comprised of the following operating fleets: (i) the medium-to-long-haul van (“Van”) fleet transports a variety of consumer nondurable products and other commodities in truckload quantities over irregular routes using dry van trailers; (ii) the expedited (“Expedited”) fleet provides time-sensitive truckload services utilizing driver teams; and (iii) the regional short-haul (“Regional”) fleet provides comparable truckload van service within geographic regions across the United States. Dedicated provides truckload services dedicated to a specific customer, generally for a retail distribution center or manufacturing facility, utilizing either dry van or specialized trailers. Temperature Controlled provides truckload services for temperature sensitive products over irregular routes utilizing temperature-controlled trailers. (We previously utilized the name “Specialized Services” to encompass the operations of both Dedicated and Temperature Controlled.) Revenues for the Truckload segment include a small amount of non-trucking revenues which consist primarily of the intra-Mexico portion of cross-border shipments delivered to or from Mexico where we utilize a third-party capacity provider. The Werner Logistics segment generates the majority of our non-trucking revenues through five operating units that provide non-trucking services to our customers. These five Werner Logistics operating units are as follows: (i) truck brokerage (“Brokerage”) uses contracted carriers to complete customer shipments; (ii) freight management (“Freight Management”) offers a full range of single-source logistics management services and solutions; (iii) the intermodal (“Intermodal”) unit offers rail transportation through alliances with rail and drayage providers as an alternative to truck transportation; (iv) Werner Global Logistics international (“WGL”) provides complete management of global shipments from origin to destination using a combination of air, ocean, truck and rail transportation modes; and (v) Werner Final Mile (“Final Mile”) offers home and business deliveries of large or heavy items using two associates operating a liftgate straight truck. We generate other revenues from our driver training schools, transportation-related activities such as third-party equipment maintenance and equipment leasing, and other business activities. None of these operations meets the quantitative reporting thresholds. As a result, these operations are grouped in “Other” in the table below. “Corporate” includes revenues and expenses that are incidental to our activities and are not attributable to any of our operating segments, including gains and losses on sales of assets not attributable to our operating segments. We do not prepare separate balance sheets by segment and, as a result, assets are not separately identifiable by segment. Inter-segment eliminations in the table below represent transactions between reporting segments that are eliminated in consolidation. The following table summarizes our segment information (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Revenues Truckload Transportation Services $ 403,502 $ 379,249 $ 788,505 $ 752,166 Werner Logistics 100,804 103,965 200,657 200,542 Other 15,127 15,166 31,237 28,344 Corporate 524 614 946 987 Subtotal 519,957 498,994 1,021,345 982,039 Inter-segment eliminations (449 ) (313 ) (616 ) (556 ) Total $ 519,508 $ 498,681 $ 1,020,729 $ 981,483 Operating Income Truckload Transportation Services $ 36,036 $ 22,766 $ 59,502 $ 55,125 Werner Logistics 2,285 6,573 5,334 11,608 Other (541 ) (1,839 ) (396 ) (3,773 ) Corporate (867 ) 2,053 (1,555 ) (920 ) Total $ 36,913 $ 29,553 $ 62,885 $ 62,040 |
Derivative Financial Instrument
Derivative Financial Instrument | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instrument | Derivative Financial Instrument In the normal course of business we are subject to risk from adverse fluctuations in foreign exchange and interest rates and commodity prices. We manage our risks for interest rate changes through use of an interest rate swap. At June 30, 2017 , we had one interest rate swap outstanding, which matures in September 2019, with a notional value of $75.0 million and a pre-tax fair value loss of $0.6 million . The counterparty to this contract is a major financial institution. We are exposed to credit loss in the event of non-performance by the counterparty. We do not use derivative instruments for trading or speculative purposes and have no derivative financial instruments to reduce our exposure to fuel price fluctuations. Our objective in managing exposure to interest rate risk is to limit the impact on earnings and cash flow. The extent to which we use such instruments is dependent on our access to these contracts in the financial markets and our success using other methods. Our outstanding derivative financial instrument is recognized as an other long-term liability in the Consolidated Balance Sheets at fair value. The interest rate swap is accounted for as a cash flow hedging instrument. At inception, we formally designated and documented the financial instrument as a hedge of a specific underlying exposure, the risk management objective, and the manner in which effectiveness of the hedge will be assessed. We formally assess, both at inception and at each reporting period thereafter, whether the derivative financial instrument is effective in offsetting changes in cash flows of the related underlying exposure. All changes in fair value of outstanding derivatives in cash flow hedges, except any ineffective portion, are recorded in other comprehensive income until earnings are impacted by the hedged transaction. Classification of the gain or loss in the Consolidated Statements of Income upon release from comprehensive income is the same as that of the underlying exposure. Any ineffective portion of the change in fair value of the instruments is recognized immediately in earnings. We will discontinue the use of hedge accounting prospectively when (i) the derivative instrument is no longer effective in offsetting changes in fair value or cash flows of the underlying hedged item; (ii) the derivative instrument expires, is sold, terminated or exercised; or (iii) designating the derivative instrument as a hedge is no longer appropriate. Should we discontinue hedge accounting because it is no longer probable that an anticipated transaction will occur in the originally expected period, or within an additional two-month period thereafter, changes to fair value accumulated in other comprehensive income would be recognized immediately in earnings. FASB ASC 815-10, Derivatives and Hedging , requires companies to recognize the derivative instrument as an asset or a liability at fair value in the statement of financial position. Fair value of the derivative instrument is required to be measured under the FASB’s Fair Value Measurements and Disclosures guidance, which establishes a hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs use quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. The fair value of our interest rate swap is based on Level 2 inputs. |
Accounting Policies (Policy)
Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Adoption of ASU No. 2015-11 | In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, “Inventory: Simplifying the Measurement of Inventory,” which requires inventory to be recorded at the lower of cost and net realizable value (instead of lower of cost or market). The Company adopted ASU No. 2015-11 as of January 1, 2017. Upon adoption, this update had no effect on our consolidated financial position, results of operations or cash flows. |
Adoption of ASU No. 2016-09 | In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting,” to simplify several aspects of the accounting for share-based payment transactions. The new update requires excess tax benefits and tax deficiencies to be recorded in the consolidated statements of income as a component of income tax expense when share-based awards vest or are settled. The update also eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the consolidated statements of cash flows. The standard also provides an accounting policy election to account for forfeitures as they occur and now allows for withholding up to the maximum statutory tax rate on certain share-based awards without triggering liability accounting. The Company adopted ASU No. 2016-09 as of January 1, 2017. Upon adoption, share-based payment excess tax benefits and tax deficiencies are recognized in the consolidated statements of income as a component of income tax expense, rather than additional paid-in capital as previously recognized. The Company elected to report excess tax benefits as operating activities in the consolidated statements of cash flows on a prospective basis, and prior period amounts have not been adjusted. The Company also elected to use actual forfeitures to determine the amount of share-based compensation expense to be recognized. This change was applied on a modified retrospective basis and resulted in a $0.3 million decrease to retained earnings in first quarter 2017. |
Credit Facilities (Tables)
Credit Facilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Line of Credit Facility [Line Items] | |
Schedule of Maturities of Long-term Debt | At June 30, 2017 , the aggregate future maturities of long-term debt by year are as follows (in thousands): 2017 $ — 2018 — 2019 75,000 2020 — 2021 — Total $ 75,000 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Basic And Diluted Earnings Per Share | The computation of basic and diluted earnings per share is shown below (in thousands, except per share amounts). Three Months Ended Six Months Ended 2017 2016 2017 2016 Net income $ 23,219 $ 18,306 $ 39,238 $ 38,398 Weighted average common shares outstanding 72,227 72,048 72,209 72,036 Dilutive effect of stock-based awards 265 318 260 313 Shares used in computing diluted earnings per share 72,492 72,366 72,469 72,349 Basic earnings per share $ 0.32 $ 0.25 $ 0.54 $ 0.53 Diluted earnings per share $ 0.32 $ 0.25 $ 0.54 $ 0.53 |
Equity Compensation (Tables)
Equity Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity Compensation [Abstract] | |
Schedule of Equity Compensation Expense and Related Income Tax Benefit Recognized | The following table summarizes the equity compensation expense and related income tax benefit recognized in the Consolidated Statements of Income (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Stock options: Pre-tax compensation expense $ 1 $ 4 $ 3 $ 9 Tax benefit — 2 1 4 Stock option expense, net of tax $ 1 $ 2 $ 2 $ 5 Restricted awards: Pre-tax compensation expense $ 866 $ 800 $ 1,499 $ 930 Tax benefit 340 313 585 363 Restricted stock expense, net of tax $ 526 $ 487 $ 914 $ 567 Performance awards: Pre-tax compensation expense $ 306 $ 530 $ 589 $ 111 Tax benefit 120 206 230 43 Performance award expense, net of tax $ 186 $ 324 $ 359 $ 68 |
Schedule of Equity Compensation Stock Options Activity | The following table summarizes stock option activity for the six months ended June 30, 2017 : Number of Options (in thousands) Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at beginning of period 171 $ 18.19 Granted — — Exercised (57 ) 17.46 Forfeited — — Expired — — Outstanding at end of period 114 18.55 1.71 $ 1,235 Exercisable at end of period 110 18.39 1.60 $ 1,201 |
Schedule of Equity Compensation, Restricted Award Activity | The following table summarizes restricted award activity for the six months ended June 30, 2017 : Number of Restricted Awards (in thousands) Weighted Average Grant Date Fair Value ($) Nonvested at beginning of period 293 $ 25.98 Granted 80 26.85 Vested (4 ) 25.55 Forfeited (9 ) 26.98 Nonvested at end of period 360 26.15 |
Schedule of Equity Compensation Performance Award Activity | The following table summarizes performance award activity for the six months ended June 30, 2017 : Number of Performance Awards (in thousands) Weighted Average Grant Date Fair Value ($) Nonvested at beginning of period 124 $ 27.33 Granted 69 26.89 Vested (35 ) 27.07 Forfeited — — Nonvested at end of period 158 27.20 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table summarizes our segment information (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Revenues Truckload Transportation Services $ 403,502 $ 379,249 $ 788,505 $ 752,166 Werner Logistics 100,804 103,965 200,657 200,542 Other 15,127 15,166 31,237 28,344 Corporate 524 614 946 987 Subtotal 519,957 498,994 1,021,345 982,039 Inter-segment eliminations (449 ) (313 ) (616 ) (556 ) Total $ 519,508 $ 498,681 $ 1,020,729 $ 981,483 Operating Income Truckload Transportation Services $ 36,036 $ 22,766 $ 59,502 $ 55,125 Werner Logistics 2,285 6,573 5,334 11,608 Other (541 ) (1,839 ) (396 ) (3,773 ) Corporate (867 ) 2,053 (1,555 ) (920 ) Total $ 36,913 $ 29,553 $ 62,885 $ 62,040 |
Accounting Policies (Details)
Accounting Policies (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Retained Earnings Adjustments [Line Items] | |
Cumulative effect on retained earnings | $ (0.3) |
Credit Facilities (Narrative) (
Credit Facilities (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | ||
Total of committed credit facilities with banks | $ 325,000 | |
Borrowings outstanding | 75,000 | $ 180,000 |
Stand-by letters of credit | 25,100 | |
Mature September 15, 2019 | ||
Line of Credit Facility [Line Items] | ||
Total of committed credit facilities with banks | $ 75,000 | |
Committed credit facilities maturity | Sep. 15, 2019 | |
Line of credit facility, interest rate | 1.76% | |
Interest rate swap facility, fixed interest | 2.50% | |
Borrowings outstanding | $ 75,000 | |
Mature July 12, 2020 | ||
Line of Credit Facility [Line Items] | ||
Total of committed credit facilities with banks | $ 100,000 | |
Committed credit facilities maturity | Jul. 12, 2020 | |
Mature July 13, 2020 | ||
Line of Credit Facility [Line Items] | ||
Total of committed credit facilities with banks | $ 75,000 | |
Committed credit facilities maturity | Jul. 13, 2020 | |
Mature March 5, 2020 | ||
Line of Credit Facility [Line Items] | ||
Total of committed credit facilities with banks | $ 75,000 | |
Committed credit facilities maturity | Mar. 5, 2020 |
Credit Facilities (Details)
Credit Facilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||
2,017 | $ 0 | |
2,018 | 0 | |
2,019 | 75,000 | |
2,020 | 0 | |
2,021 | 0 | |
Total | $ 75,000 | $ 180,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Examination [Line Items] | ||||
Accrued interest expense | $ 48 | $ 75 | $ 103 | $ 127 |
Gross liability for unrecognized tax benefits | 5,000 | 5,000 | ||
Unrecognized tax benefits that would impact our effective tax rate | 3,200 | 3,200 | ||
Interest included in total liability | 900 | 900 | ||
Significant increases or decreases for uncertain tax positions | $ 0 | $ 0 | ||
State and Foreign Tax Authorities | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Period of statute of limitations (years) | 3 years | |||
State and Foreign Tax Authorities | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Period of statute of limitations (years) | 4 years |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitment for property and equipment purchases | $ 121.4 |
Loss contingency, damages awarded, value | $ 0.8 |
Earnings Per Share (Basic And D
Earnings Per Share (Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 23,219 | $ 18,306 | $ 39,238 | $ 38,398 |
Weighted average common shares outstanding | 72,227 | 72,048 | 72,209 | 72,036 |
Dilutive effect of stock-based awards | 265 | 318 | 260 | 313 |
Shares used in computing diluted earnings per share | 72,492 | 72,366 | 72,469 | 72,349 |
Basic earnings per share | $ 0.32 | $ 0.25 | $ 0.54 | $ 0.53 |
Diluted earnings per share | $ 0.32 | $ 0.25 | $ 0.54 | $ 0.53 |
Number of antidilutive options that were excluded from computation of earnings per share | 0 | 0 | 0 | 0 |
Equity Compensation (Narrative)
Equity Compensation (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Equity Compensation [Abstract] | ||
Maximum shares of common stock | 20,000,000 | |
Maximum annual shares awarded to employee | 500,000 | |
Shares available for granting additional awards | 7,343,383 | |
Unrecognized compensation cost of non-vested equity compensation awards | $ 7,300 | |
Unrecognized compensation cost of non-vested equity compensation awards expected to be recognized over a weighted average period (years) | 2 years 3 months 18 days | |
Number of options granted | 0 | 0 |
Intrinsic value of stock options exercised | $ 636 | $ 71 |
Stock Options | ||
Equity Compensation [Abstract] | ||
Maximum period for exercisable options (years and days) | 10 years 1 day | |
Stock Options | Minimum | ||
Equity Compensation [Abstract] | ||
Vesting period (months) | 24 months | |
Stock Options | Maximum | ||
Equity Compensation [Abstract] | ||
Vesting period (months) | 72 months | |
Restricted Stock | ||
Equity Compensation [Abstract] | ||
Fair value of awards vested | $ 107 | 54 |
Restricted Stock | Minimum | ||
Equity Compensation [Abstract] | ||
Vesting period (months) | 12 months | |
Restricted Stock | Maximum | ||
Equity Compensation [Abstract] | ||
Vesting period (months) | 84 months | |
Performance Shares | ||
Equity Compensation [Abstract] | ||
Fair value of awards vested | $ 1,000 | $ 1,600 |
Performance Shares | Minimum | ||
Equity Compensation [Abstract] | ||
Vesting period (months) | 12 months | |
Performance Shares | Maximum | ||
Equity Compensation [Abstract] | ||
Vesting period (months) | 60 months |
Equity Compensation (Equity Com
Equity Compensation (Equity Compensation Expense And Related Income Tax Benefit Recognized) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock Options | ||||
Equity Compensation [Abstract] | ||||
Pre-tax compensation expense | $ 1 | $ 4 | $ 3 | $ 9 |
Tax benefit | 0 | 2 | 1 | 4 |
Stock expense, net of tax | 1 | 2 | 2 | 5 |
Restricted Stock | ||||
Equity Compensation [Abstract] | ||||
Pre-tax compensation expense | 866 | 800 | 1,499 | 930 |
Tax benefit | 340 | 313 | 585 | 363 |
Stock expense, net of tax | 526 | 487 | 914 | 567 |
Performance Shares | ||||
Equity Compensation [Abstract] | ||||
Pre-tax compensation expense | 306 | 530 | 589 | 111 |
Tax benefit | 120 | 206 | 230 | 43 |
Stock expense, net of tax | $ 186 | $ 324 | $ 359 | 68 |
Forfeiture Estimate | ||||
Equity Compensation [Abstract] | ||||
Pre-tax compensation expense | (1,800) | |||
Tax benefit | $ (700) |
Equity Compensation (Schedule o
Equity Compensation (Schedule of Equity Compensation Stock Options Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Equity Compensation [Abstract] | ||
Number of options outstanding at beginning of period | 171 | |
Number of options granted | 0 | 0 |
Number of options exercised | (57) | |
Number of options forfeited | 0 | |
Number of options expired | 0 | |
Number of options outstanding at end of period | 114 | |
Number of options exercisable at end of period | 110 | |
Weighted average exercise price outstanding at beginning of period | $ 18.19 | |
Weighted average exercise price options granted | 0 | |
Weighted average exercise price options exercised | 17.46 | |
Weighted average exercise price options forfeited | 0 | |
Weighted average exercise price options expired | 0 | |
Weighted average exercise price outstanding at end of period | 18.55 | |
Weighted average exercise price exercisable at end of period | $ 18.39 | |
Weighted average remaining contractual term outstanding at end of period, years | 1 year 8 months 17 days | |
Weighted average remaining contractual term exercisable at end of period, years | 1 year 7 months 7 days | |
Aggregate intrinsic value outstanding at end of period | $ 1,235 | |
Aggregate intrinsic value exercisable at end of period | $ 1,201 |
Equity Compensation (Schedule29
Equity Compensation (Schedule of Equity Compensation Restricted Stock Activity) (Details) - Restricted Stock shares in Thousands | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Equity Compensation [Abstract] | |
Number of shares nonvested at beginning of period | shares | 293 |
Number of shares granted | shares | 80 |
Number of shares vested | shares | (4) |
Number of shares forfeited | shares | (9) |
Number of shares nonvested at end of period | shares | 360 |
Weighted average grant date fair value nonvested at beginning of period | $ / shares | $ 25.98 |
Weighted average grant date fair value shares granted | $ / shares | 26.85 |
Weighted average grant date fair value shares vested | $ / shares | 25.55 |
Weighted average grant date fair value shares forfeited | $ / shares | 26.98 |
Weighted average grant date fair value nonvested at end of period | $ / shares | $ 26.15 |
Equity Compensation (Schedule30
Equity Compensation (Schedule of Equity Compensation Performance Shares Activity) (Details) - Performance Shares shares in Thousands | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Equity Compensation [Abstract] | |
Number of shares nonvested at beginning of period | shares | 124 |
Number of shares granted | shares | 69 |
Number of shares vested | shares | (35) |
Number of shares forfeited | shares | 0 |
Number of shares nonvested at end of period | shares | 158 |
Weighted average grant date fair value nonvested at beginning of period | $ / shares | $ 27.33 |
Weighted average grant date fair value shares granted | $ / shares | 26.89 |
Weighted average grant date fair value shares vested | $ / shares | 27.07 |
Weighted average grant date fair value shares forfeited | $ / shares | 0 |
Weighted average grant date fair value nonvested at end of period | $ / shares | $ 27.20 |
Segment Information (Narratives
Segment Information (Narratives) (Details) | 6 Months Ended |
Jun. 30, 2017Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information (Summary Of
Segment Information (Summary Of Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 519,508 | $ 498,681 | $ 1,020,729 | $ 981,483 |
Operating Income | 36,913 | 29,553 | 62,885 | 62,040 |
Truckload Transportation Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 403,502 | 379,249 | 788,505 | 752,166 |
Operating Income | 36,036 | 22,766 | 59,502 | 55,125 |
Werner Logistics | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 100,804 | 103,965 | 200,657 | 200,542 |
Operating Income | 2,285 | 6,573 | 5,334 | 11,608 |
Other Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 15,127 | 15,166 | 31,237 | 28,344 |
Operating Income | (541) | (1,839) | (396) | (3,773) |
Corporate Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 524 | 614 | 946 | 987 |
Operating Income | (867) | 2,053 | (1,555) | (920) |
Subtotal | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 519,957 | 498,994 | 1,021,345 | 982,039 |
Intersegment Elimination | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (449) | $ (313) | $ (616) | $ (556) |
Derivative Financial Instrume33
Derivative Financial Instrument (Details) $ in Millions | Jun. 30, 2017USD ($) |
Cash Flow Hedge Interest Rate Swap Details [Abstract] | |
Notional value of interest rate swap | $ 75 |
Fair value of interest rate swap | $ 0.6 |