Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | RYDER SYSTEM INC | ||
Entity Central Index Key | 85961 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2013 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $4,624,370,268 | ||
Entity Common Stock, Shares Outstanding | 52,988,075 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Lease and rental revenues | $2,939,422 | $2,770,026 | $2,695,376 |
Services revenue | 2,911,465 | 2,819,673 | 2,707,013 |
Fuel services revenue | 787,887 | 829,586 | 854,578 |
Total revenues | 6,638,774 | 6,419,285 | 6,256,967 |
Cost of lease and rental | 2,039,263 | 1,928,933 | 1,902,823 |
Cost of services | 2,447,867 | 2,359,880 | 2,266,884 |
Cost of fuel services | 768,292 | 814,058 | 838,673 |
Other operating expenses | 126,572 | 131,659 | 134,018 |
Selling, general and administrative expenses | 816,975 | 790,681 | 763,660 |
Pension lump sum settlement expense | 97,231 | 0 | 0 |
Gains on vehicles sales, net | -126,824 | -96,175 | -89,108 |
Interest expense | 142,075 | 137,196 | 140,557 |
Miscellaneous income, net | -13,613 | -15,372 | -11,727 |
Restructuring and other charges (recoveries), net | 2,387 | -470 | 8,070 |
Total expenses | 6,300,225 | 6,050,390 | 5,953,850 |
Earnings from continuing operations before income taxes | 338,549 | 368,895 | 303,117 |
Provision for income taxes | 118,090 | 125,699 | 102,218 |
Earnings from continuing operations | 220,459 | 243,196 | 200,899 |
(Loss) earnings from discontinued operations, net of tax | -1,884 | -5,404 | 9,080 |
Net earnings | $218,575 | $237,792 | $209,979 |
Earnings (loss) per common share — Basic | |||
Continuing operations | $4.18 | $4.67 | $3.93 |
Discontinued operations | ($0.04) | ($0.10) | $0.18 |
Net earnings | $4.14 | $4.57 | $4.11 |
Earnings (loss) per common share — Diluted | |||
Continuing operations | $4.14 | $4.63 | $3.91 |
Discontinued operations | ($0.03) | ($0.10) | $0.18 |
Net earnings | $4.11 | $4.53 | $4.09 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $218,575 | $237,792 | $209,979 |
Other comprehensive (loss) income: | |||
Changes in cumulative translation adjustment and other | -71,962 | -21,985 | 29,641 |
Amortization of pension and postretirement items | 18,601 | 33,219 | 28,674 |
Income tax expense related to amortization of pension and postretirement items | -6,411 | -11,739 | -10,016 |
Amortization of pension and postretirement items, net of tax | 12,190 | 21,480 | 18,658 |
Reclassification of net actuarial loss from pension settlement | 97,231 | 0 | 0 |
Change in net actuarial loss and prior service credit | -281,173 | 236,855 | -109,765 |
Income tax benefit (expense) related to change in net actuarial loss and prior service credit | 61,692 | -86,979 | 41,012 |
Change in net actuarial loss and prior service credit, net of taxes | -122,250 | 149,876 | -68,753 |
Other comprehensive (loss) income, net of taxes | -182,022 | 149,371 | -20,454 |
Comprehensive income | $36,553 | $387,163 | $189,525 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $50,092 | $61,562 |
Receivables, net | 794,864 | 777,370 |
Inventories | 66,007 | 64,298 |
Prepaid expenses and other current assets | 165,234 | 159,263 |
Total current assets | 1,076,197 | 1,062,493 |
Revenue earning equipment, net | 6,994,448 | 6,490,837 |
Operating property and equipment, net | 699,594 | 633,826 |
Goodwill | 393,029 | 383,719 |
Intangible assets | 66,619 | 72,406 |
Direct financing leases and other assets | 446,099 | 460,501 |
Total assets | 9,675,986 | 9,103,782 |
Current liabilities: | ||
Short-term debt and current portion of long-term debt | 12,207 | 259,438 |
Accounts payable | 560,852 | 475,364 |
Accrued expenses and other current liabilities | 520,532 | 496,337 |
Total current liabilities | 1,093,591 | 1,231,139 |
Long-term debt | 4,500,275 | 3,929,987 |
Other non-current liabilities | 786,676 | 616,305 |
Deferred income taxes | 1,475,970 | 1,429,637 |
Total liabilities | 7,856,512 | 7,207,068 |
Shareholders’ equity: | ||
Preferred stock of no par value per share — authorized, 3,800,917; none outstanding, December 31, 2014 or 2013 | 0 | 0 |
Common stock of $0.50 par value per share — authorized, 400,000,000; outstanding, December 31, 2014 —53,039,688 ; December 31, 2013 — 53,335,386 | 26,520 | 26,667 |
Additional paid-in capital | 962,328 | 917,539 |
Retained earnings | 1,450,896 | 1,390,756 |
Accumulated other comprehensive loss | -620,270 | -438,248 |
Total shareholders’ equity | 1,819,474 | 1,896,714 |
Total liabilities and shareholders’ equity | $9,675,986 | $9,103,782 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0 | $0 |
Preferred stock, shares authorized | 3,800,917 | 3,800,917 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.50 | $0.50 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares outstanding | 5,309,688 | 53,335,386 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities of continuing operations: | |||
Net earnings | $218,575 | $237,792 | $209,979 |
Less: (Loss) earnings from discontinued operations, net of tax | -1,884 | -5,404 | 9,080 |
Earnings from continuing operations | 220,459 | 243,196 | 200,899 |
Depreciation expense | 1,040,259 | 957,141 | 939,677 |
Gains on vehicles sales, net | -126,824 | -96,175 | -89,108 |
Share-based compensation expense | 20,905 | 19,310 | 18,864 |
Defined benefit plan, lump sum settlement charge, pre tax | 97,231 | 0 | 0 |
Pension lump sum settlement expense | 0 | 0 | |
Amortization expense and other non-cash charges, net | 47,263 | 56,389 | 49,209 |
Deferred income tax expense | 104,761 | 113,581 | 87,102 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Receivables | -20,687 | -14,272 | 7,107 |
Inventories | -2,153 | -841 | 729 |
Prepaid expenses and other assets | -16,040 | -23,114 | 10,715 |
Accounts payable | 53,481 | 34,431 | -22,803 |
Accrued expenses and other non-current liabilities | -48,664 | -66,564 | -68,267 |
Net cash provided by operating activities of continuing operations | 1,369,991 | 1,223,082 | 1,134,124 |
Cash flows from financing activities of continuing operations: | |||
Net change in commercial paper borrowings | -221,082 | 146,382 | -64,751 |
Debt proceeds | 839,708 | 556,989 | 745,777 |
Debt repaid, including capital lease obligations | -280,661 | -332,624 | -283,937 |
Dividends on common stock | -74,871 | -67,720 | -61,266 |
Common stock issued | 46,568 | 90,646 | 28,386 |
Common stock repurchased | -106,286 | 0 | -26,878 |
Excess tax benefits from share-based compensation | 700 | 5,151 | 1,341 |
Debt issuance costs | -5,424 | -5,189 | -4,867 |
Net cash provided by financing activities of continuing operations | 198,652 | 393,635 | 333,805 |
Cash flows from investing activities of continuing operations: | |||
Purchases of property and revenue earning equipment | -2,259,164 | -2,140,464 | -2,133,235 |
Sales of revenue earning equipment | 493,477 | 445,589 | 405,440 |
Sale and leaseback of revenue earning equipment | 125,825 | 0 | 130,184 |
Sales of operating property and equipment | 3,486 | 6,782 | 7,350 |
Acquisitions | -9,972 | -1,858 | -5,113 |
Collections on direct finance leases | 65,517 | 70,677 | 71,897 |
Changes in restricted cash | 3,396 | -10,553 | 19,204 |
Insurance recoveries and other | -1,250 | 8,173 | 0 |
Net cash used in investing activities of continuing operations | -1,578,685 | -1,621,654 | -1,504,273 |
Effect of exchange rate changes on cash | 297 | 5,558 | 1,344 |
(Decrease) increase in cash and cash equivalents from continuing operations | -9,745 | 621 | -35,000 |
Decrease in cash and cash equivalents from discontinued operations | -1,725 | -5,451 | -3,180 |
Decrease in cash and cash equivalents | -11,470 | -4,830 | -38,180 |
Cash and cash equivalents at January 1 | 61,562 | 66,392 | 104,572 |
Cash and cash equivalents at December 31 | $50,092 | $61,562 | $66,392 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | |
In Thousands, except Share data, unless otherwise specified | |||||||
Beginning balance at Dec. 31, 2011 | $1,318,153 | $0 | $25,572 | $769,383 | $1,090,363 | ($567,165) | |
Beginning balance, shares at Dec. 31, 2011 | 51,143,946 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income | 189,525 | 209,979 | -20,454 | ||||
Common stock dividends declared and paid | -61,266 | 0 | 0 | 0 | -61,266 | 0 | |
Common stock issued under employee stock option and stock purchase plans | [1] | 28,386 | 0 | 391 | 27,995 | 0 | 0 |
Common stock issued under employee stock option and stock purchase plans, shares | [1] | 782,783 | |||||
Benefit plan stock sales (purchases), shares | [2] | -11,110 | |||||
Benefit plan stock sales (purchases) | [2] | -535 | 0 | -5 | -530 | 0 | 0 |
Common stock repurchases | -26,343 | 0 | -272 | -8,185 | -17,886 | 0 | |
Common stock repurchases, shares | -543,923 | ||||||
Share-based compensation | 18,864 | 0 | 0 | 18,864 | 0 | 0 | |
Tax benefits from share-based compensation | 703 | 0 | 0 | 703 | 0 | 0 | |
Ending balance at Dec. 31, 2012 | 1,467,487 | 0 | 25,686 | 808,230 | 1,221,190 | -587,619 | |
Ending balance, shares at Dec. 31, 2012 | 51,371,696 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income | 387,163 | 237,792 | 149,371 | ||||
Common stock dividends declared and paid | -68,226 | 0 | 0 | 0 | -68,226 | 0 | |
Common stock issued under employee stock option and stock purchase plans | [1] | 87,168 | 0 | 956 | 86,212 | 0 | 0 |
Common stock issued under employee stock option and stock purchase plans, shares | [1] | 1,913,067 | |||||
Benefit plan stock sales (purchases), shares | [2] | 50,623 | |||||
Benefit plan stock sales (purchases) | [2] | 3,478 | 0 | 25 | 3,453 | 0 | 0 |
Share-based compensation | 19,310 | 0 | 0 | 19,310 | 0 | 0 | |
Tax benefits from share-based compensation | 334 | 0 | 0 | 334 | 0 | 0 | |
Ending balance at Dec. 31, 2013 | 1,896,714 | 0 | 26,667 | 917,539 | 1,390,756 | -438,248 | |
Ending balance, shares at Dec. 31, 2013 | 53,335,386 | 53,335,386 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income | 36,553 | 218,575 | -182,022 | ||||
Common stock dividends declared and paid | 0 | 0 | 0 | 0 | |||
Common stock dividends declared | -75,631 | -75,631 | |||||
Common stock issued under employee stock option and stock purchase plans | [1] | 45,882 | 0 | 511 | 45,371 | 0 | 0 |
Common stock issued under employee stock option and stock purchase plans, shares | [1] | 1,019,341 | |||||
Benefit plan stock sales (purchases), shares | 8,239 | ||||||
Benefit plan stock sales (purchases) | [2] | 686 | 0 | 4 | 682 | 0 | 0 |
Common stock repurchases | -106,286 | 0 | -662 | -22,820 | -82,804 | 0 | |
Common stock repurchases, shares | -1,323,278 | ||||||
Share-based compensation | 20,905 | 0 | 0 | 20,905 | 0 | 0 | |
Tax benefits from share-based compensation | 651 | 0 | 0 | 651 | 0 | 0 | |
Ending balance at Dec. 31, 2014 | $1,819,474 | $0 | $26,520 | $962,328 | $1,450,896 | ($620,270) | |
Ending balance, shares at Dec. 31, 2014 | 5,309,688 | 53,039,688 | |||||
[1] | Net of common shares delivered as payment for the exercise price or to satisfy the holders’ withholding tax liability upon exercise of options. | ||||||
[2] | Represents open-market transactions of common shares by the trustee of Ryder’s deferred compensation plans. |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Common stock dividends declared and paid, per share | $1.42 | $1.30 | $1.20 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Consolidation and Presentation | ||
The consolidated financial statements include the accounts of Ryder System, Inc. (Ryder) and all entities in which Ryder has a controlling voting interest (“subsidiaries”) and variable interest entities (“VIEs”) where Ryder is determined to be the primary beneficiary. Ryder is deemed to be the primary beneficiary if we have the power to direct the activities that most significantly impact the entity’s economic performance and we share in the significant risks and rewards of the entity. All significant intercompany accounts and transactions between consolidated companies have been eliminated in consolidation. | ||
Reclassifications | ||
In 2014, we reclassified our vehicle transportation costs within "Cost of services", "Selling, general and administrative expenses" and "Other operating expenses" to "Cost of lease and rental" within the Consolidated Statement of Earnings. Prior year amounts have been reclassified to conform to the current period presentation. These reclassifications were immaterial to the financial statements taken as a whole. | ||
Use of Estimates | ||
The preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are based on management’s best knowledge of historical trends, actions that we may take in the future, and other information available when the consolidated financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available. Areas where the nature of the estimate make it reasonably possible that actual results could materially differ from the amounts estimated include: depreciation and residual value guarantees, employee benefit plan obligations, self-insurance accruals, impairment assessments on long-lived assets (including goodwill and indefinite-lived intangible assets), revenue recognition, allowance for accounts receivable, income tax liabilities and contingent liabilities. | ||
Cash Equivalents | ||
Cash equivalents represent cash in excess of current operating requirements invested in short-term, interest-bearing instruments with maturities of three months or less at the date of purchase and are stated at cost. | ||
Restricted Cash | ||
Restricted cash primarily consists of cash proceeds from the sale of eligible vehicles set aside for the acquisition of replacement vehicles under our like-kind exchange tax program. See Note 13, “Income Taxes,” for a complete discussion of the vehicle like-kind exchange tax program. We classify restricted cash within “Prepaid expenses and other current assets” if the restriction is expected to expire in the twelve months following the balance sheet date or within “Direct financing leases and other assets” if the restriction is expected to expire more than twelve months after the balance sheet date. The changes in restricted cash balances are reflected as an investing activity in our Consolidated Statements of Cash Flows as they relate to the sales and purchases of revenue earning equipment. | ||
Revenue Recognition | ||
We recognize revenue when persuasive evidence of an arrangement exists, the services have been rendered to customers or delivery has occurred, the pricing is fixed or determinable, and collectibility is reasonably assured. In our evaluation of whether revenue is fixed or determinable, we determine whether the total contract consideration in the arrangement could change based on one or more factors. These factors, which vary among each of our segments, are further discussed below. Generally, the judgments made for these purposes do not materially impact the revenue recognized in any period. Sales tax collected from customers and remitted to the applicable taxing authorities is accounted for on a net basis, with no impact on revenue. | ||
Our judgments on collectibility are initially established when a business relationship with a customer is initiated and is continuously monitored as services are provided. We have a credit rating system based on internally developed standards and ratings provided by third parties. Our credit rating system, along with monitoring for delinquent payments, allows us to make decisions as to whether collectibility may not be reasonably assured. Factors considered during this process include historical payment trends, industry risks, liquidity of the customer, years in business, and judgments, liens or bankruptcies. When collectibility is not considered reasonably assured (typically when a customer is 120 days past due), revenue is not recognized until cash is collected from the customer. | ||
We generate revenue primarily through the lease, rental and maintenance of revenue earning equipment and by providing logistics management and dedicated services. We classify our revenues in one of the following categories: | ||
Lease and rental | ||
Lease and rental includes full service lease and commercial rental revenues from our FMS business segment. Full service lease is marketed, priced and managed as a bundled lease arrangement, which includes equipment, service and financing components. We do not offer a stand-alone unbundled finance lease of vehicles. For these reasons, both the lease and service components of our full service leases are included within lease and rental revenues. | ||
Our full service lease arrangements include lease deliverables such as the lease of a vehicle and the executory agreement for the maintenance, insurance, taxes and other services related to the leased vehicles during the lease term. Arrangement consideration is allocated between lease deliverables and non-lease deliverables based on management’s best estimate of the relative fair value of each deliverable. The arrangement consideration allocated to lease deliverables is accounted for pursuant to accounting guidance on leases. Our full service lease arrangements provide for a fixed charge billing and a variable charge billing based on mileage or time usage. Fixed charges are typically billed at the beginning of the month for the services to be provided that month. Variable charges are typically billed a month in arrears. Costs associated with the activities performed under our full service leasing arrangements are primarily comprised of labor, parts, outside work, depreciation, licenses, insurance, operating taxes and vehicle financing. These costs are expensed as incurred except for depreciation. Refer to “Summary of Significant Accounting Policies – Revenue Earning Equipment, Operating Property and Equipment, and Depreciation” for information regarding our depreciation policies. Non-chargeable maintenance costs have been allocated and reflected within “Cost of lease and rental” based on the maintenance-related labor costs relative to all product lines. | ||
Revenue from lease and rental agreements is recognized based on the classification of the arrangement, typically as either an operating or direct finance lease (DFL). | ||
• | The majority of our leases and all of our rental arrangements are classified as operating leases and therefore, we recognize lease and commercial rental revenue on a straight-line basis as it becomes receivable over the term of the lease or rental arrangement. Lease and rental agreements do not usually provide for scheduled rent increases or escalations. However, most lease agreements allow for rate changes based upon changes in the Consumer Price Index (CPI). Lease and rental agreements also provide for vehicle usage charges based on a time charge and/or a fixed per-mile charge. The fixed time charge, the fixed per-mile charge and the changes in rates attributed to changes in the CPI are considered contingent rentals and are not considered fixed or determinable until the effect of CPI changes is implemented or the equipment usage occurs. | |
• | The non-lease deliverables of our full service lease arrangements are comprised of access to substitute vehicles, emergency road service, and safety services. These services are available to our customers throughout the lease term. Accordingly, revenue is recognized on a straight-line basis over the lease term. | |
• | Leases not classified as operating leases are generally considered direct financing leases. We recognize revenue for direct financing leases using the effective interest method, which provides a constant periodic rate of return on the outstanding investment on the lease. Recognition of income on direct finance leases is suspended when management determines that collection of future income is not probable, which is at the point at which the customer’s delinquent balance is determined to be at risk (generally over 120 days past due). Accrual is resumed, and previously suspended income is recognized, when the receivable becomes contractually current and/or collection doubts are removed. Cash receipts on impaired direct finance lease receivables are first recorded against the direct finance lease receivable and then to any unrecognized income. A direct finance lease receivable is considered impaired, based on current information and events, if it is probable that we will be unable to collect all amounts due according to the contractual terms of the lease. | |
Services | ||
Services include contract maintenance, contract-related maintenance and other revenues from our FMS business segment and all SCS revenues. | ||
Under our contract maintenance arrangements, we provide maintenance and repairs required to keep a vehicle in good operating condition, schedule preventive maintenance inspections and provide access to emergency road service and substitute vehicles. The vast majority of our services are routine services performed on a recurring basis throughout the term of the arrangement. From time to time, we provide non-routine major repair services in order to place a vehicle back in service. Revenue from maintenance service contracts is recognized on a straight-line basis as maintenance services are rendered over the terms of the related arrangements. | ||
Contract maintenance arrangements are generally cancelable, without penalty, after one year with 60 days prior written notice. Our maintenance service arrangement provides for a monthly fixed charge and a monthly variable charge based on mileage or time usage. Fixed charges are typically billed at the beginning of the month for the services to be provided that month. Variable charges are typically billed a month in arrears. Most contract maintenance agreements allow for rate changes based upon changes in the CPI. The fixed per-mile charge and the changes in rates attributed to changes in the CPI are recognized as earned. Costs associated with the activities performed under our contract maintenance arrangements are primarily comprised of labor, parts and outside work. These costs are expensed as incurred. Non-chargeable maintenance costs have been allocated and reflected within “Cost of services” based on the proportionate maintenance-related labor costs relative to all product lines. | ||
Revenue from SCS service contracts is recognized as services are rendered in accordance with contract terms, which typically include discrete billing rates for the services. In certain SCS contracts, a portion of the contract consideration may be contingent upon the satisfaction of performance criteria, attainment of pain/gain share thresholds or volume thresholds. The contingent portion of the revenue in these arrangements is not considered fixed or determinable until the performance criteria or thresholds have been met. In transportation management arrangements where we act as principal, revenue is reported on a gross basis, without deducting third-party purchased transportation costs. To the extent that we are acting as an agent in the arrangement, revenue is reported on a net basis, after deducting purchased transportation costs. | ||
Fuel | ||
Fuel services include fuel services revenue from our FMS business segment. Revenue from fuel services is recognized when fuel is delivered to customers. Fuel is largely a pass-through to our customers for which we realize minimal changes in profitability during periods of steady market fuel prices. However, profitability may be positively or negatively impacted by sudden increases or decreases in market fuel prices during a short period of time as customer pricing for fuel services is established based on market fuel costs. | ||
Accounts Receivable Allowance | ||
We maintain an allowance for uncollectible customer receivables and an allowance for billing adjustments related to certain discounts and billing corrections. Estimates are updated regularly based on historical experience of bad debts and billing adjustments processed, current collection trends and aging analysis. Accounts are charged against the allowance when determined to be uncollectible. The allowance is maintained at a level deemed appropriate based on loss experience and other factors affecting collectibility. Historical results may not necessarily be indicative of future results. | ||
Inventories | ||
Inventories, which consist primarily of fuel, tires and vehicle parts, are valued using the lower of weighted-average cost or market. | ||
Revenue Earning Equipment, Operating Property and Equipment, and Depreciation | ||
Revenue earning equipment, comprised of vehicles and operating property and equipment are initially recorded at cost inclusive of vendor rebates. Revenue earning equipment and operating property and equipment under capital lease are initially recorded at the lower of the present value of minimum lease payments or fair value. Vehicle repairs and maintenance that extend the life or increase the value of a vehicle are capitalized, whereas ordinary maintenance and repairs (including tire replacement or repair) are expensed as incurred. Direct costs incurred in connection with developing or obtaining internal-use software are capitalized. Costs incurred during the preliminary software development project stage, as well as maintenance and training costs, are expensed as incurred. | ||
Leasehold improvements are depreciated over the shorter of their estimated useful lives or the term of the related lease, which may include one or more option renewal periods where failure to exercise such options would result in an economic penalty in such amount that renewal appears, at the inception of the lease, to be reasonably assured. If a substantial additional investment is made in a leased property during the term of the lease, we re-evaluate the lease term to determine whether the investment, together with any penalties related to non-renewal, would constitute an economic penalty in such amount that renewal appears to be reasonably assured. | ||
Provision for depreciation is computed using the straight-line method on all depreciable assets. Depreciation expense has been recorded throughout the Consolidated Statement of Earnings depending on the nature of the related asset. We periodically review and adjust, as appropriate, the residual values and useful lives of revenue earning equipment. Our review of the residual values and useful lives of revenue earning equipment, is established with a long-term view considering historical market price changes, current and expected future market price trends, expected lives of vehicles and extent of alternative uses. Factors that could cause actual results to materially differ from estimates include but are not limited to unforeseen changes in technology innovations. | ||
We routinely dispose of used revenue earning equipment as part of our FMS business. Revenue earning equipment held for sale is stated at the lower of carrying amount or fair value less costs to sell. For revenue earning equipment held for sale, we stratify our fleet by vehicle type (tractors, trucks, and trailers), weight class, age and other relevant characteristics and create classes of similar assets for analysis purposes. Fair value is determined based upon recent market prices obtained from our own sales experience for sales of each class of similar assets and vehicle condition. Reductions in the carrying values of vehicles held for sale are recorded within “Other operating expenses” in the Consolidated Statements of Earnings. While we believe our estimates of residual values and fair values of revenue earning equipment are reasonable, changes to our estimates of values may occur due to changes in the market for used vehicles, the condition of the vehicles, and inherent limitations in the estimation process. | ||
Gains and losses on sales of operating property and equipment are reflected in “Miscellaneous income, net.” | ||
Goodwill and Other Intangible Assets | ||
Goodwill on acquisitions represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Factors that contribute to the recognition of goodwill in our acquisitions include (i) expected growth rates and profitability of the acquired companies, (ii) securing buyer-specific synergies that increase revenue and profits and are not otherwise available to market participants, (iii) significant cost savings opportunities, (iv) experienced workforce and (v) our strategies for growth in sales, income and cash flows. | ||
Goodwill and other intangible assets with indefinite useful lives are not amortized, but rather, are tested for impairment at least annually (April 1st). In evaluating goodwill for impairment, we have the option to first assess qualitative factors to determine whether further impairment testing is necessary. Among other relevant events and circumstances that affect the fair value of reporting units, we consider individual factors such as macroeconomic conditions, changes in our industry and the markets in which we operate as well as our reporting units' historical and expected future financial performance. If we conclude that it is more likely than not that a reporting unit's fair value is less than its carrying value, recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of each of our reporting units with its carrying amount. If a reporting unit’s carrying amount exceeds its fair value, the second step is performed. The second step involves a comparison of the implied fair value and carrying value of that reporting unit’s goodwill. To the extent that a reporting unit’s carrying amount exceeds the implied fair value of its goodwill, an impairment loss is recognized. | ||
Our valuation of fair value for certain reporting units is determined based on an average of discounted future cash flow models that use ten years of projected cash flows and various terminal values based on multiples, book value or growth assumptions. For certain reporting units, fair value is determined based on the application of current trading multiples for comparable publicly-traded companies and the historical pricing multiples for comparable merger and acquisition transactions that have occurred in our industry. Rates used to discount cash flows are dependent upon interest rates and the cost of capital at a point in time. Our discount rates reflect a weighted average cost of capital based on our industry and capital structure adjusted for equity and size risk premiums based on market capitalization. Estimates of future cash flows are dependent on our knowledge and experience about past and current events and assumptions about conditions we expect to exist, including long-term growth rates, capital requirements and useful lives. Our estimates of cash flows are also based on historical and future operating performance, economic conditions and actions we expect to take. In addition to these factors, our SCS reporting units are dependent on several key customers or industry sectors. The loss of a key customer may have a significant impact to one of our SCS reporting units, causing us to assess whether or not the event resulted in a goodwill impairment loss. While we believe our estimates of future cash flows are reasonable, there can be no assurance that deterioration in economic conditions, customer relationships or adverse changes to expectations of future performance will not occur, resulting in a goodwill impairment loss. | ||
In making our assessments of fair value, we rely on our knowledge and experience about past and current events and assumptions about conditions we expect to exist in the future. These assumptions are based on a number of factors including future operating performance, economic conditions, actions we expect to take, and present value techniques. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of goodwill impairment. It is possible that assumptions underlying the impairment analysis will change in such a manner that impairment in value may occur in the future. | ||
Identifiable intangible assets not subject to amortization are assessed for impairment using a similar process to that used to evaluate goodwill as described above. Intangible assets with finite lives are amortized over their respective estimated useful lives. Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below. | ||
Impairment of Long-Lived Assets Other than Goodwill | ||
Long-lived assets held and used, including revenue earning equipment, operating property and equipment and intangible assets with finite lives, are tested for recoverability when circumstances indicate that the carrying amount of assets may not be recoverable. Recoverability of long-lived assets is evaluated by comparing the carrying amount of an asset or asset group to management’s best estimate of the undiscounted future operating cash flows (excluding interest charges) expected to be generated by the asset or asset group. If these comparisons indicate that the asset or asset group is not recoverable, an impairment loss is recognized for the amount by which the carrying value of the asset or asset group exceeds fair value. Fair value is determined by a quoted market price, if available, or an estimate of projected future operating cash flows, discounted using a rate that reflects the related operating segment’s average cost of funds. Long-lived assets to be disposed of including revenue earning equipment, operating property and equipment and indefinite-lived intangible assets, are reported at the lower of carrying amount or fair value less costs to sell. | ||
Contract Incentives | ||
Payments made to or on behalf of a lessee or customer upon entering into a lease of our revenue earning equipment or contract are deferred and recognized on a straight-line basis as a reduction of revenue over the contract term. Amounts to be amortized in the next year have been classified as “Prepaid expenses and other current assets” with the remainder included in “Direct financing leases and other assets.” | ||
Self-Insurance Accruals | ||
We retain a portion of the accident risk under vehicle liability, workers’ compensation and other insurance programs. Under our insurance programs, we retain the risk of loss in various amounts up to $3 million on a per occurrence basis. Self-insurance accruals are based primarily on an actuarially estimated, undiscounted cost of claims, which includes claims incurred but not reported. Such liabilities are based on estimates. Historical loss development factors are utilized to project the future development of incurred losses, and these amounts are adjusted based upon actual claim experience and settlements. While we believe that the amounts are adequate, there can be no assurance that changes to our actuarial estimates may not occur due to limitations inherent in the estimation process. Changes in the actuarial estimates of these accruals are charged or credited to earnings in the period determined. Amounts estimated to be paid within the next year have been classified as “Accrued expenses and other current liabilities” with the remainder included in “Other non-current liabilities” in our Consolidated Balance Sheets. | ||
We also maintain additional insurance at certain amounts in excess of our respective underlying retention. Amounts recoverable from insurance companies are not offset against the related accrual as our insurance policies do not extinguish or provide legal release from the obligation to make payments related to such risk-related losses. Amounts expected to be received within the next year from insurance companies have been included within “Receivables, net” with the remainder included in “Direct financing leases and other assets” and are recognized only when realization of the claim for recovery is considered probable. The accrual for the related claim has been classified within “Accrued expenses and other current liabilities” if it is estimated to be paid within the next year, otherwise it has been classified in “Other non-current liabilities” in our Consolidated Balance Sheets. | ||
Income Taxes | ||
Our provision for income taxes is based on reported earnings before income taxes. Deferred taxes are recognized for the future tax effects of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases using tax rates in effect for the years in which the differences are expected to reverse. | ||
The effects of changes in tax laws on deferred tax balances are recognized in the period the new legislation is enacted. Valuation allowances are recognized to reduce deferred tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, management considers estimates of future taxable income. We calculate our current and deferred tax position based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed in subsequent years. Adjustments based on filed returns are recorded when identified. | ||
We are subject to tax audits in numerous jurisdictions in the U.S. and around the world. Tax audits by their very nature are often complex and can require several years to complete. In the normal course of business, we are subject to challenges from the Internal Revenue Service (IRS) and other tax authorities regarding amounts of taxes due. These challenges may alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions. As part of our calculation of the provision for income taxes on earnings, we determine whether the benefits of our tax positions are at least more likely than not of being sustained upon audit based on the technical merits of the tax position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Such accruals require management to make estimates and judgments with respect to the ultimate outcome of a tax audit. Actual results could vary materially from these estimates. We adjust these reserves, including any impact on the related interest and penalties, in light of changing facts and circumstances, such as the progress of a tax audit. | ||
Interest and penalties related to income tax exposures are recognized as incurred and included in “Provision for income taxes” in our Consolidated Statements of Earnings. Accruals for income tax exposures, including penalties and interest, expected to be settled within the next year are included in “Accrued expenses and other current liabilities” with the remainder included in “Other non-current liabilities” in our Consolidated Balance Sheets. The federal benefit from state income tax exposures is included in “Deferred income taxes” in our Consolidated Balance Sheets. | ||
Severance and Contract Termination Costs | ||
We recognize liabilities for severance and contract termination costs based upon the nature of the cost to be incurred. For involuntary separation plans that are completed within the guidelines of our written involuntary separation plan, we record the liability when it is probable and reasonably estimable. For one-time termination benefits, such as additional severance pay or benefit payouts, and other exit costs, such as contract termination costs, the liability is measured and recognized initially at fair value in the period in which the liability is incurred, with subsequent changes to the liability recognized as adjustments in the period of change. Severance related to position eliminations that are part of a restructuring plan are recorded within “Restructuring and other charges (recoveries), net” in the Consolidated Statements of Earnings. To the extent that severance costs are not part of a restructuring plan, the termination costs are recorded as a direct cost of revenue or within “Selling, general and administrative expenses,” in the Consolidated Statements of Earnings depending upon the nature of the eliminated position. | ||
Environmental Expenditures | ||
We record liabilities for environmental assessments and/or cleanup when it is probable a loss has been incurred and the costs can be reasonably estimated. Environmental liability estimates may include costs such as anticipated site testing, consulting, remediation, disposal, post-remediation monitoring and legal fees, as appropriate. The liability does not reflect possible recoveries from insurance companies or reimbursement of remediation costs by state agencies, but does include estimates of cost sharing with other potentially responsible parties. Estimates are not discounted, as the timing of the anticipated cash payments is not fixed or readily determinable. Subsequent adjustments to initial estimates are recorded as necessary based upon additional information developed in subsequent periods. In future periods, new laws or regulations, advances in remediation technology and additional information about the ultimate remediation methodology to be used could significantly change our estimates. Claims for reimbursement of remediation costs are recorded when recovery is deemed probable. | ||
Derivative Instruments and Hedging Activities | ||
We use financial instruments, including forward exchange contracts, futures, swaps and cap agreements to manage our exposures to movements in interest rates and foreign currency exchange rates. The use of these financial instruments modifies the exposure of these risks with the intent to reduce the risk or cost to us. We do not enter into derivative financial instruments for trading purposes. We limit our risk that counterparties to the derivative contracts will default and not make payments by entering into derivative contracts only with counterparties comprised of large banks and financial institutions that meet established credit criteria. We do not expect to incur any losses as a result of counterparty default. | ||
On the date a derivative contract is entered into, we formally document, among other items, the intended hedging designation and relationship, along with the risk management objectives and strategies for entering into the derivative contract. We also formally assess, both at inception and on an ongoing basis, whether the derivatives we used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Cash flows from derivatives that are accounted for as hedges are classified in the Consolidated Statements of Cash Flows in the same category as the items being hedged. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, we discontinue hedge accounting prospectively. | ||
The hedging designation may be classified as one of the following: | ||
No Hedging Designation. The gain or loss on a derivative instrument not designated as an accounting hedging instrument is recognized in earnings. | ||
Fair Value Hedge. A hedge of a recognized asset or liability or an unrecognized firm commitment is considered a fair value hedge. For fair value hedges, both the effective and ineffective portions of the changes in the fair value of the derivative, along with the gain or loss on the hedged item that is attributable to the hedged risk, are both recorded in earnings. | ||
Cash Flow Hedge. A hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability is considered a cash flow hedge. The effective portion of the change in the fair value of a derivative that is declared as a cash flow hedge is recorded in “Accumulated other comprehensive loss” until earnings are affected by the variability in cash flows of the designated hedged item. | ||
Net Investment Hedge. A hedge of a net investment in a foreign operation is considered a net investment hedge. The effective portion of the change in the fair value of the derivative used as a net investment hedge of a foreign operation is recorded in the currency translation adjustment account within “Accumulated other comprehensive loss.” The ineffective portion, if any, on the hedged item that is attributable to the hedged risk is recorded in earnings and reported in “Miscellaneous income, net” in the Consolidated Statements of Earnings. | ||
Foreign Currency Translation | ||
Our foreign operations generally use the local currency as their functional currency. Assets and liabilities of these operations are translated at the exchange rates in effect on the balance sheet date. If exchangeability between the functional currency and the U.S. dollar is temporarily lacking at the balance sheet date, the first subsequent rate at which exchanges can be made is used to translate assets and liabilities. Items in the Consolidated Statements of Earnings are translated at the average exchange rates for the year. The impact of currency fluctuations is recorded in “Changes in cumulative translation adjustment and other” in the Consolidated Statements of Comprehensive Income (Loss). Upon sale or upon complete or substantially complete liquidation of an investment in a foreign operation, the currency translation adjustment attributable to that operation is removed from accumulated other comprehensive loss and is reported as part of the gain or loss on sale or liquidation of the investment for the period during which the sale or liquidation occurs. Gains and losses resulting from foreign currency transactions are recorded in “Miscellaneous income, net” in the Consolidated Statements of Earnings. | ||
Share-Based Compensation | ||
The fair value of stock option awards and nonvested stock awards other than restricted stock units (RSUs), is expensed on a straight-line basis over the vesting period of the awards. RSUs are expensed in the year they are granted. Cash flows from the tax benefits resulting from tax deductions in excess of the compensation expense recognized for those options (windfall tax benefits) are classified as financing cash flows on an award-by-award basis. Tax benefits resulting from tax deductions in excess of share-based compensation expense recognized are credited to additional paid-in capital in the Consolidated Balance Sheets. Realized tax shortfalls are first offset against the cumulative balance of windfall tax benefits, if any, and then charged directly to income tax expense. Tax shortfalls are classified as operating cash flows on an award-by-award basis, with no netting of amounts credited to equity from windfall tax benefits. | ||
Earnings Per Share | ||
Earnings per share is computed using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Our nonvested stock (time-vested restricted stock rights and market-based restricted stock rights) issued prior to 2012 and restricted stock units are considered participating securities since the share-based awards contain a non-forfeitable right to dividend equivalents irrespective of whether the awards ultimately vest. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average shares outstanding during the period. | ||
Diluted earnings per common share reflect the dilutive effect of potential common shares from stock options and other nonparticipating nonvested stock. The dilutive effect of stock options is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options would be used to purchase common shares at the average market price for the period. The assumed proceeds include the purchase price the grantee pays, the windfall tax benefit that we receive upon assumed exercise and the unrecognized compensation expense at the end of each period. | ||
Share Repurchases | ||
Repurchases of shares of common stock are made periodically in open-market transactions and are subject to market conditions, legal requirements and other factors. The cost of share repurchases is allocated between common stock and retained earnings based on the amount of additional paid-in capital at the time of the share repurchase. | ||
Defined Benefit Pension and Postretirement Benefit Plans | ||
The funded status of our defined benefit pension plans and postretirement benefit plans are recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at December 31, the measurement date. The fair value of plan assets represents the current market value of contributions made to irrevocable trust funds, held for the sole benefit of participants, which are invested by the trust funds. For defined benefit pension plans, the benefit obligation represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. For postretirement benefit plans, the benefit obligation represents the actuarial present value of postretirement benefits attributed to employee services already rendered. Overfunded plans, with the fair value of plan assets exceeding the benefit obligation, are aggregated and recorded as a prepaid pension asset equal to this excess. Underfunded plans, with the benefit obligation exceeding the fair value of plan assets, are aggregated and recorded as a pension and postretirement benefit liability equal to this excess. | ||
The current portion of pension and postretirement benefit liabilities represent the actuarial present value of benefits payable within the next year exceeding the fair value of plan assets (if funded), measured on a plan-by-plan basis. These liabilities are recorded in “Accrued expenses and other current liabilities” in the Consolidated Balance Sheets. | ||
Pension and postretirement benefit expense includes service cost, interest cost, expected return on plan assets (if funded), and amortization of prior service credit and net actuarial loss. Service cost represents the actuarial present value of participant benefits earned in the current year. Interest cost represents the time value of money cost associated with the passage of time. The expected return on plan assets represents the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the obligation. Prior service credit represents the impact of negative plan amendments. Net actuarial losses arise as a result of differences between actual experience and assumptions or as a result of changes in actuarial assumptions. Net actuarial loss and prior service credit not recognized as a component of pension and postretirement benefit expense as they arise are recognized as "Change in net actuarial loss and prior service credit, net of tax" in the Consolidated Statements of Comprehensive Income (Loss). These pension and postretirement items are subsequently amortized as a component of pension and postretirement benefit expense over the remaining service period, if the majority of the employees are active, otherwise over the remaining life expectancy, provided such amounts exceed thresholds which are based upon the benefit obligation or the value of plan assets. | ||
The measurement of benefit obligations and pension and postretirement benefit expense is based on estimates and assumptions approved by management. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain assumptions, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest rates and mortality rates. | ||
Fair Value Measurements | ||
We carry various assets and liabilities at fair value in the Consolidated Balance Sheets. The most significant assets and liabilities are vehicles held for sale, which are stated at the lower of carrying amount or fair value less costs to sell, investments held in Rabbi Trusts and derivatives. | ||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are classified based on the following fair value hierarchy: | ||
Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |
Level 2 | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3 | Unobservable inputs for the asset or liability. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. | |
When available, we use unadjusted quoted market prices to measure fair value and classify such measurements within Level 1. If quoted prices are not available, fair value is based upon model-driven valuations that use current market-based or independently sourced market parameters such as interest rates and currency rates. Items valued using these models are classified according to the lowest level input or value driver that is significant to the valuation. | ||
Revenue earning equipment held for sale is measured at fair value on a nonrecurring basis and is stated at the lower of carrying amount or fair value less costs to sell. Investments held in Rabbi Trusts and derivatives are carried at fair value on a recurring basis. Investments held in Rabbi Trusts include exchange-traded equity securities and mutual funds. Fair values for these investments are based on quoted prices in active markets. For derivatives, fair value is based on model-driven valuations using the LIBOR rate or observable forward foreign exchange rates, which are observable at commonly quoted intervals for the full term of the financial instrument. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS |
Disclosure of Going Concern Uncertainties | |
On August 27, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which requires an entity to evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity's ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. The guidance will become effective January 1, 2017. The adoption of ASU 2014-15 is not expected to have an impact on our consolidated financial position, results of operations or cash flows. | |
Revenue Recognition | |
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This standard will replace most existing revenue recognition guidance when it becomes effective January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition methods. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our consolidated financial position and results of operations. | |
Discontinued Operations and Significant Disposals | |
On April 10, 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The standard requires a reporting entity to present the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections, respectively, of the Consolidated Balance Sheet for each comparative period. The guidance is applied prospectively and became effective January 1, 2015. The adoption of ASU 2014-08 did not have an impact on our consolidated financial position, results of operations or cash flows. | |
Unrecognized Tax Benefits | |
On July 18, 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit (UTB) When a Net Operating Loss (NOL) Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under this guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. This accounting guidance resulted in a reclassification of approximately $39 million from other non-current liabilities to deferred income taxes in our 2013 Consolidated Balance Sheets. Other than the change in presentation, this accounting guidance did not have an impact on our consolidated financial position, results of operations or cash flows. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS |
2014 Acquisition | |
On August 1, 2014, we acquired all of the common stock of Bullwell Trailer Solutions, Ltd, a U.K.-based trailer repair and maintenance company for a purchase price of approximately $15 million, net of cash acquired. The acquisition complements our FMS business segment coverage in the U.K. Approximately $8 million of the stock purchase price has been paid. The purchase price includes $6 million in contingent consideration to be paid to the seller provided certain conditions are met. As of December 31, 2014, the fair value of the contingent consideration has been reflected in "Accrued expenses and other current liabilities" and "Other non-current liabilities" in our Consolidated Balance Sheets. The purchase accounting for this acquisition resulted in goodwill and customer relationship intangible assets of $12 million and $2 million, respectively, with the remaining amount allocated to tangible assets, less liabilities assumed. Transaction costs related to the acquisition were $1 million during 2014 and were reflected within "Selling, general and administrative expenses" in our Consolidated Statements of Earnings. | |
The assets, liabilities and results of operations of the business acquired were not material to our consolidated financial position or results of operations and therefore pro forma financial information for the acquisition was not presented. | |
2012 Acquisition | |
Euroway Ltd., — On August 1, 2012, we acquired all of the common stock of Euroway Ltd., a U.K.-based, full service leasing, rental and maintenance company for a purchase price of $2 million and assumed capital lease obligations and debt of $20 million. Approximately $2 million of the stock purchase price has been paid ($1 million paid in both 2013 and in 2012), and the majority of the capital lease obligations have been repaid as of December 31, 2014. The acquisition included Euroway's fleet of approximately 560 full service lease vehicles as well as 800 contract maintenance vehicles. Goodwill and customer relationship intangibles related to the Euroway acquisition were $6 million and $3 million, respectively, at the acquisition date. The combined network operates under the Ryder name, complementing our FMS business segment coverage in the U.K. Transaction costs related to the Euroway acquisition were $1 million during 2012 and were primarily reflected within "Selling, general and administrative expenses" in our Consolidated Statements of Earnings. |
Restructuring_and_Other_Charge
Restructuring and Other Charges (Recoveries) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||
RESTRUCTURING AND OTHER CHARGES (RECOVERIES) | RESTRUCTURING AND OTHER CHARGES (RECOVERIES) | ||||||||||
The components of restructuring and other charges (recoveries), net were as follows: | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Restructuring and other charges (recoveries), net: | |||||||||||
Severance and employee-related costs (recoveries) | $ | 2,387 | (470 | ) | 7,205 | ||||||
Contract termination costs | — | — | 865 | ||||||||
2,387 | (470 | ) | 8,070 | ||||||||
As mentioned in Note 29, “Segment Reporting,” our primary measure of segment financial performance excludes, among other items, restructuring and other charges (recoveries), net. However, the applicable portion of the restructuring and other charges (recoveries), net that related to each segment in 2014, 2013 and 2012 were as follows: | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Fleet Management Solutions | $ | 515 | (470 | ) | 6,448 | ||||||
Supply Chain Solutions | 951 | — | 1,346 | ||||||||
Central Support Services | 921 | — | 276 | ||||||||
Total | $ | 2,387 | (470 | ) | 8,070 | ||||||
2014 Activity | |||||||||||
In the fourth quarter of 2014, we approved plans to reduce our workforce in multiple locations as a result of cost containment actions. Workforce reductions resulted in a pre-tax charge of $2 million for severance. | |||||||||||
2013 Activity | |||||||||||
The 2013 recoveries resulted from refining previous estimates of employee severance and benefit costs. | |||||||||||
2012 Activity | |||||||||||
In the second quarter of 2012, we approved a plan to eliminate approximately 350 employees, primarily in the U.S., as a result of cost containment actions. These actions have been completed. Workforce reductions resulted in a a pre-tax charge of $7 million. Restructuring and other charges (recoveries), net in 2012 also included severance and employee related costs associated with the elimination of certain positions assumed in the Euroway acquisition offset by benefits from refinements in estimates from restructuring charges in the prior year. During 2012, we also recorded a pre-tax charge of $1 million associated with non-essential leased facilities assumed in the Hill Hire acquisition. |
Receivables
Receivables | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
RECEIVABLES | RECEIVABLES | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Trade | $ | 693,114 | 680,345 | |||||
Direct financing leases | 85,946 | 79,787 | ||||||
Other, primarily warranty and insurance | 32,192 | 34,193 | ||||||
811,252 | 794,325 | |||||||
Allowance | (16,388 | ) | (16,955 | ) | ||||
Total | $ | 794,864 | 777,370 | |||||
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Current deferred tax asset | $ | 32,553 | 37,431 | |||||
Restricted cash | 13,499 | 10,655 | ||||||
Prepaid vehicle licenses | 47,561 | 49,121 | ||||||
Prepaid operating taxes | 15,208 | 14,321 | ||||||
Prepaid sales commission | 12,255 | 10,033 | ||||||
Other | 44,158 | 37,702 | ||||||
Total | $ | 165,234 | 159,263 | |||||
Revenue_Earning_Equipment
Revenue Earning Equipment | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Revenue Earning Equipment [Abstract] | ||||||||||||||||||||||
REVENUE EARNING EQUIPMENT | REVENUE EARNING EQUIPMENT | |||||||||||||||||||||
Estimated | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Useful | ||||||||||||||||||||||
Lives | Cost | Accumulated | Net Book | Cost | Accumulated | Net Book | ||||||||||||||||
Depreciation | Value (1) | Depreciation | Value (1) | |||||||||||||||||||
(In years) | (In thousands) | |||||||||||||||||||||
Held for use: | ||||||||||||||||||||||
Full service lease | 3 — 12 | $ | 7,918,497 | (2,591,688 | ) | 5,326,809 | 7,436,093 | (2,537,077 | ) | 4,899,016 | ||||||||||||
Commercial rental | 4.5 — 12 | 2,411,957 | (830,683 | ) | 1,581,274 | 2,210,863 | (747,283 | ) | 1,463,580 | |||||||||||||
Held for sale | 312,698 | (226,333 | ) | 86,365 | 439,983 | (311,742 | ) | 128,241 | ||||||||||||||
Total | $ | 10,643,152 | (3,648,704 | ) | 6,994,448 | 10,086,939 | (3,596,102 | ) | 6,490,837 | |||||||||||||
_______________ | ||||||||||||||||||||||
-1 | Revenue earning equipment, net includes vehicles under capital leases of $48 million, less accumulated depreciation of $22 million, at December 31, 2014 and $54 million, less accumulated depreciation of $22 million, at December 31, 2013. | |||||||||||||||||||||
Depreciation expense was $961 million, $884 million and $867 million in 2014, 2013 and 2012, respectively. |
Operating_Property_and_Equipme
Operating Property and Equipment | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
OPERATING PROPERTY AND EQUIPMENT | OPERATING PROPERTY AND EQUIPMENT | |||||||||
Estimated | December 31, | |||||||||
Useful Lives | 2014 | 2013 | ||||||||
(In years) | (In thousands) | |||||||||
Land | — | $ | 201,089 | 193,031 | ||||||
Buildings and improvements | 10 — 40 | 766,360 | 715,965 | |||||||
Machinery and equipment | 3 — 10 | 663,616 | 595,244 | |||||||
Other | 3 — 10 | 103,557 | 120,703 | |||||||
1,734,622 | 1,624,943 | |||||||||
Accumulated depreciation | (1,035,028 | ) | (991,117 | ) | ||||||
Total | $ | 699,594 | 633,826 | |||||||
Depreciation expense was $79 million in 2014 and $73 million in both 2013 and 2012, respectively. |
Goodwill
Goodwill | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
GOODWILL | GOODWILL | ||||||||||
The carrying amount of goodwill attributable to each reportable business segment with changes therein was as follows: | |||||||||||
Fleet | Supply | Total | |||||||||
Management | Chain | ||||||||||
Solutions | Solutions | ||||||||||
(In thousands) | |||||||||||
Balance at January 1, 2013 | |||||||||||
Goodwill | $ | 223,129 | 190,308 | 413,437 | |||||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | |||||
212,807 | 171,409 | 384,216 | |||||||||
Purchase accounting adjustments | 377 | — | 377 | ||||||||
Foreign currency translation adjustment | (302 | ) | (572 | ) | (874 | ) | |||||
Balance at December 31, 2013 | |||||||||||
Goodwill | 223,204 | 189,736 | 412,940 | ||||||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | |||||
212,882 | 170,837 | 383,719 | |||||||||
Acquisitions | 11,839 | — | 11,839 | ||||||||
Foreign currency translation adjustment | (1,826 | ) | (703 | ) | (2,529 | ) | |||||
Balance at December 31, 2014 | |||||||||||
Goodwill | 233,217 | 189,033 | 422,250 | ||||||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | |||||
$ | 222,895 | 170,134 | 393,029 | ||||||||
Purchase accounting adjustments in 2013 primarily related to changes in the fair value of acquired revenue earning equipment. We did not adjust the December 31, 2012 balance sheet as the amounts were not material. | |||||||||||
We assess goodwill for impairment on April 1st of each year or more often if deemed necessary. For our annual goodwill impairment test on April 1, 2014, we performed a quantitative test for one reporting unit in the Supply Chain Solutions business segment and determined there was no impairment. We performed a qualitative test for our other reporting units. After performing the qualitative assessment, we concluded it is more likely than not that fair values are greater than carrying values and determined that quantitative testing was not necessary. |
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
INTANGIBLE ASSETS | INTANGIBLE ASSETS | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Indefinite lived intangible assets — Trade name | $ | 9,084 | 9,084 | |||||
Finite lived intangible assets: | ||||||||
Customer relationship intangibles | 97,922 | 95,683 | ||||||
Other intangibles, primarily trade name | 2,367 | 2,254 | ||||||
Accumulated amortization | (42,374 | ) | (35,478 | ) | ||||
57,915 | 62,459 | |||||||
Foreign currency translation adjustment | (380 | ) | 863 | |||||
Total | $ | 66,619 | 72,406 | |||||
The Ryder trade name has been identified as having an indefinite useful life. Customer relationship intangibles are being amortized on a straight-line basis over their estimated useful lives, generally 7-19 years. We recorded amortization expense associated with finite lived intangible assets of approximately $7 million in 2014 and $8 million in both 2013 and 2012. The future amortization expense for each of the five succeeding years related to all intangible assets that are currently recorded in the Consolidated Balance Sheets is estimated to range from $6 - $7 million per year for 2015 - 2019. |
Direct_Financing_Leases_and_Ot
Direct Financing Leases and Other Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Direct Financing Leases And Other Assets [Abstract] | ||||||||
DIRECT FINANCING LEASES AND OTHER ASSETS | DIRECT FINANCING LEASES AND OTHER ASSETS | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Direct financing leases, net | $ | 331,065 | 320,327 | |||||
Investments held in Rabbi Trusts | 38,681 | 32,519 | ||||||
Contract incentives | 21,475 | 20,355 | ||||||
Insurance receivables | 13,957 | 14,933 | ||||||
Debt issuance costs | 16,503 | 16,570 | ||||||
Prepaid pension asset | 2,698 | 23,556 | ||||||
Interest rate swap agreements | 4,565 | 9,333 | ||||||
Other | 17,155 | 22,908 | ||||||
Total | $ | 446,099 | 460,501 | |||||
Accrued_Expenses_and_Other_Lia
Accrued Expenses and Other Liabilities | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Accrued Liabilities and Other Liabilities [Abstract] | ||||||||||||||||||||
ACCRUED EXPENSES AND OTHER LIABILITIES | ACCRUED EXPENSES AND OTHER LIABILITIES | |||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Accrued | Non-Current | Total | Accrued | Non-Current | Total | |||||||||||||||
Expenses | Liabilities | Expenses | Liabilities | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Salaries and wages | $ | 114,446 | — | 114,446 | 106,281 | — | 106,281 | |||||||||||||
Deferred compensation | 3,209 | 37,093 | 40,302 | 2,505 | 31,896 | 34,401 | ||||||||||||||
Pension benefits | 3,739 | 444,657 | 448,396 | 3,660 | 292,155 | 295,815 | ||||||||||||||
Other postretirement benefits | 2,112 | 26,889 | 29,001 | 2,414 | 28,374 | 30,788 | ||||||||||||||
Other employee benefits | 7,172 | 19,276 | 26,448 | 3,809 | 6,712 | 10,521 | ||||||||||||||
Insurance obligations (1) | 132,246 | 189,431 | 321,677 | 125,835 | 186,700 | 312,535 | ||||||||||||||
Environmental liabilities | 3,877 | 8,002 | 11,879 | 4,515 | 8,548 | 13,063 | ||||||||||||||
Operating taxes | 92,330 | — | 92,330 | 94,188 | — | 94,188 | ||||||||||||||
Income taxes | 5,066 | 22,843 | 27,909 | 2,623 | 23,813 | 26,436 | ||||||||||||||
Interest | 32,441 | — | 32,441 | 33,654 | — | 33,654 | ||||||||||||||
Deposits, mainly from customers | 59,388 | 5,929 | 65,317 | 55,854 | 6,239 | 62,093 | ||||||||||||||
Deferred revenue | 11,759 | — | 11,759 | 15,123 | — | 15,123 | ||||||||||||||
Acquisition holdbacks | 3,817 | 2,187 | 6,004 | 2,012 | — | 2,012 | ||||||||||||||
Other | 48,930 | 30,369 | 79,299 | 43,864 | 31,868 | 75,732 | ||||||||||||||
Total | $ | 520,532 | 786,676 | 1,307,208 | 496,337 | 616,305 | 1,112,642 | |||||||||||||
_________________ | ||||||||||||||||||||
(1) Insurance obligations are primarily comprised of self-insured claim liabilities. | ||||||||||||||||||||
We retain a portion of the accident risk under vehicle liability and workers’ compensation insurance programs. Self-insurance accruals are based primarily on actuarially estimated, undiscounted cost of claims, and include claims incurred but not reported. Such liabilities are based on estimates. Historical loss development factors are utilized to project the future development of incurred losses, and these amounts are adjusted based upon actual claim experience and settlements. While we believe the amounts are adequate, there can be no assurance that changes to our estimates may not occur due to limitations inherent in the estimation process. During 2014, 2013 and 2012, we recorded a benefit within earnings from continuing operations of $14 million, $5 million, and $1 million, respectively, from development in estimated prior years’ self-insured loss reserves for the reasons noted above. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
INCOME TAXES | INCOME TAXES | ||||||||||
The components of earnings from continuing operations before income taxes and the provision for income taxes from continuing operations were as follows: | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Earnings from continuing operations before income taxes: | |||||||||||
United States | $ | 275,912 | 302,689 | 241,672 | |||||||
Foreign | 62,637 | 66,206 | 61,445 | ||||||||
Total | $ | 338,549 | 368,895 | 303,117 | |||||||
Current tax expense (benefit) from continuing operations: | |||||||||||
Federal (1) | $ | (230 | ) | 233 | (4,157 | ) | |||||
State (1) | 6,396 | 4,194 | 11,514 | ||||||||
Foreign | 7,163 | 7,691 | 7,759 | ||||||||
13,329 | 12,118 | 15,116 | |||||||||
Deferred tax expense from continuing operations: | |||||||||||
Federal | 90,104 | 98,036 | 77,819 | ||||||||
State | 12,429 | 15,399 | 3,871 | ||||||||
Foreign | 2,228 | 146 | 5,412 | ||||||||
104,761 | 113,581 | 87,102 | |||||||||
Provision for income taxes from continuing operations | $ | 118,090 | 125,699 | 102,218 | |||||||
______________ | |||||||||||
-1 | Excludes federal and state tax benefits resulting from the exercise of stock options and vesting of restricted stock awards, which were credited directly to “Additional paid-in capital.” | ||||||||||
A reconciliation of the federal statutory tax rate with the effective tax rate from continuing operations follows: | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Percentage of pre-tax earnings) | |||||||||||
Federal statutory tax rate | 35 | 35 | 35 | ||||||||
Impact on deferred taxes for changes in tax rates | (0.9 | ) | 0.1 | — | |||||||
State income taxes, net of federal income tax benefit | 5.2 | 4 | 4.1 | ||||||||
Foreign rates varying from federal | (3.7 | ) | (4.1 | ) | (2.8 | ) | |||||
Tax reviews and audits | (1.1 | ) | (0.8 | ) | (2.7 | ) | |||||
Miscellaneous items, net | 0.4 | (0.1 | ) | 0.1 | |||||||
Effective tax rate | 34.9 | 34.1 | 33.7 | ||||||||
Tax Law Changes | |||||||||||
The effects of changes in tax laws on deferred tax balances are recognized in the period the new legislation is enacted. The following provides a summary of the increases (decreases) to net earnings from continuing operations from changes in tax laws by tax jurisdiction: | |||||||||||
Tax Jurisdiction | Enactment Date | Net Earnings | |||||||||
(in thousands) | |||||||||||
2014 | |||||||||||
New York | 31-Mar-14 | $1,776 | |||||||||
Rhode Island | 19-Jun-14 | $626 | |||||||||
2013 | |||||||||||
Puerto Rico | 30-Jun-13 | ($503) | |||||||||
United Kingdom | 17-Jul-13 | $485 | |||||||||
2012 | |||||||||||
United Kingdom | July 17,2012 | ($856) | |||||||||
Canada | 20-Jun-12 | ($671) | |||||||||
Deferred Income Taxes | |||||||||||
The components of the net deferred income tax liability were as follows: | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Deferred income tax assets: | |||||||||||
Self-insurance accruals | $ | 81,908 | 69,291 | ||||||||
Net operating loss carryforwards | 377,740 | 322,380 | |||||||||
Alternative minimum taxes | 10,727 | 10,727 | |||||||||
Accrued compensation and benefits | 68,626 | 60,039 | |||||||||
Federal benefit on state tax positions | 18,847 | 18,417 | |||||||||
Pension benefits | 157,082 | 87,745 | |||||||||
Miscellaneous other accruals | 33,090 | 39,414 | |||||||||
748,020 | 608,013 | ||||||||||
Valuation allowance | (24,742 | ) | (33,793 | ) | |||||||
723,278 | 574,220 | ||||||||||
Deferred income tax liabilities: | |||||||||||
Property and equipment bases difference | (2,149,699 | ) | (1,943,923 | ) | |||||||
Other items | (16,996 | ) | (22,503 | ) | |||||||
(2,166,695 | ) | (1,966,426 | ) | ||||||||
Net deferred income tax liability (1) | $ | (1,443,417 | ) | (1,392,206 | ) | ||||||
______________ | |||||||||||
-1 | Deferred tax assets of $33 million and $37 million have been included in “Prepaid expenses and other current assets” at December 31, 2014 and 2013, respectively. | ||||||||||
U.S. deferred income taxes have not been provided on certain undistributed earnings of foreign subsidiaries,which were approximately $658 million at December 31, 2014. The determination of the amount of the related unrecognized deferred tax liability is not practicable because of the complexities associated with the hypothetical calculations. We have historically reinvested such earnings overseas in foreign operations indefinitely and expect future earnings will also be reinvested overseas indefinitely. | |||||||||||
At December 31, 2014, we had U.S. federal tax effected net operating loss carryforwards of $334 million and various U.S. subsidiaries had state tax effected net operating loss carryforwards of $21 million both expiring through tax year 2034. We also had foreign tax effected net operating losses of $23 million that are available to reduce future income tax payments in several countries, subject to varying expiration rules. A valuation allowance has been established to reduce deferred income tax assets, principally foreign tax loss carryforwards, to amounts more likely than not to be realized. We had unused alternative minimum tax credits of $11 million at December 31, 2014 which are available to reduce future income tax liabilities. The alternative minimum tax credits may be carried forward indefinitely. | |||||||||||
Uncertain Tax Positions | |||||||||||
The following is a summary of tax years that are no longer subject to examination: | |||||||||||
Federal — audits of our U.S. federal income tax returns are closed through fiscal year 2008. | |||||||||||
State — for the majority of states, tax returns are closed through fiscal year 2008. | |||||||||||
Foreign — we are no longer subject to foreign tax examinations by tax authorities for tax years before 2007 in Canada, 2009 in Brazil, 2009 in Mexico and 2013 in the U.K., which are our major foreign tax jurisdictions. | |||||||||||
The following table summarizes the activity related to unrecognized tax benefits (excluding the federal benefit received from state positions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Balance at January 1 | $ | 56,813 | 52,271 | 62,247 | |||||||
Additions based on tax positions related to the current year | 6,896 | 7,606 | 3,980 | ||||||||
Reductions due to lapse of applicable statutes of limitation | (3,227 | ) | (3,064 | ) | (13,956 | ) | |||||
Gross balance at December 31 | 60,482 | 56,813 | 52,271 | ||||||||
Interest and penalties | 5,125 | 5,756 | 5,319 | ||||||||
Balance at December 31 | $ | 65,607 | 62,569 | 57,590 | |||||||
Of the total unrecognized tax benefits, $47 million (net of the federal benefit on state issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods. The total amount includes $4 million and $5 million of interest and penalties, at December 31, 2014 and 2013, respectively, net of the federal benefit on state issues. For the years ended December 31, 2014, 2013 and 2012, we recognized an income tax benefit related to interest and penalties of $1 million in each period, within “Provision for income taxes” in our Consolidated Statements of Earnings. Unrecognized tax benefits related to federal, state and foreign tax positions may decrease by $4 million by December 31, 2015, if audits are completed or tax years close during 2015. | |||||||||||
Like-Kind Exchange Program | |||||||||||
We have a like-kind exchange program for certain of our U.S.-based revenue earning equipment. Pursuant to the program, we dispose of vehicles and acquire replacement vehicles in a form whereby tax gains on disposal of eligible vehicles are deferred. To qualify for like-kind exchange treatment, we exchange through a qualified intermediary eligible vehicles being disposed of with vehicles being acquired, allowing us to generally carryover the tax basis of the vehicles sold (“like-kind exchanges”). The program results in a material deferral of federal and state income taxes, and a decrease in cash taxes in periods when we are not in a net operating loss (NOL) position. As part of the program, the proceeds from the sale of eligible vehicles are restricted for the acquisition of replacement vehicles and other specified applications. Due to the structure utilized to facilitate the like-kind exchanges, the qualified intermediary that holds the proceeds from the sales of eligible vehicles and the entity that holds the vehicles to be acquired under the program are required to be consolidated in the accompanying Consolidated Financial Statements in accordance with U.S. GAAP. The total assets, primarily revenue earning equipment, and the total liabilities, primarily vehicle accounts payable, held by these consolidated entities are equal in value as these entities are solely structured to facilitate the like-kind exchanges. At December 31, 2014 and 2013, these consolidated entities had total assets, primarily revenue earning equipment, and total liabilities, primarily accounts payable of $205 million and $246 million, respectively. | |||||||||||
In the second quarter of 2012, we began to restructure and centralize the administration of vehicle purchasing, licensing and sales in order to reduce vehicle acquisition costs as well as realize operational efficiencies. During 2012, we were in a NOL position for tax purposes and were not realizing any benefits from the like-kind exchange program. As a result of those events, effective April 1, 2012, we temporarily suspended the like-kind exchange program. Once we suspended the program, tax gains on vehicles sold during that period were no longer deferred. Those tax gains resulted in an immaterial decrease in the NOL. Although the suspension did not impact our 2012 tax provision or capital spending program, our cash flows increased by $19 million from the release of the program's restricted cash. | |||||||||||
In the first quarter of 2013, once we had completed our restructuring of the administrative processes for purchasing and selling vehicles, we reinstated our like-kind exchange program. The reinstated program operates, and will provide cash tax benefits, in the same manner as it did prior to suspension once we are no longer in a NOL position. In 2013, our cash flow declined $11 million as a result of the program's restricted cash. There were no other impacts to cash flow as a result of the program's reinstatement. |
Leases
Leases | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Leases [Abstract] | |||||||||||
LEASES | LEASES | ||||||||||
Leases as Lessor | |||||||||||
We lease revenue earning equipment to customers for periods ranging from three to seven years for trucks and tractors and up to ten years for trailers. From time to time, we may also lease facilities to third parties. The majority of our leases are classified as operating leases. However, some of our revenue earning equipment leases are classified as direct financing leases and, to a lesser extent, sales-type leases. The net investment in direct financing and sales-type leases consisted of: | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Total minimum lease payments receivable | $ | 659,551 | 633,445 | ||||||||
Less: Executory costs | (210,241 | ) | (198,755 | ) | |||||||
Minimum lease payments receivable | 449,310 | 434,690 | |||||||||
Less: Allowance for uncollectibles | (288 | ) | (501 | ) | |||||||
Net minimum lease payments receivable | 449,022 | 434,189 | |||||||||
Unguaranteed residuals | 55,992 | 57,424 | |||||||||
Less: Unearned income | (88,003 | ) | (91,499 | ) | |||||||
Net investment in direct financing and sales-type leases | 417,011 | 400,114 | |||||||||
Current portion | (85,946 | ) | (79,787 | ) | |||||||
Non-current portion | $ | 331,065 | 320,327 | ||||||||
Our direct financing lease customers operate in a wide variety of industries, and we have no significant customer concentrations in any one industry. We assess credit risk for all of our customers including those who lease equipment under direct financing leases. Credit risk is assessed using an internally developed model which incorporates credit scores from third party providers and our own custom risk ratings and is updated on a monthly basis. The external credit scores are developed based on the customer’s historical payment patterns and an overall assessment of the likelihood of delinquent payments. Our internal ratings are weighted based on the industry that the customer operates, company size, years in business, and other credit-related indicators (i.e., profitability, cash flow, liquidity, tangible net worth, etc.). Any one of the following factors may result in a customer being classified as high risk: i) the customer has a history of late payments; ii) the customer has open lawsuits, liens or judgments; iii) the customer has been in business less than three years; and iv) the customer operates in an industry with low barriers to entry. For those customers who are designated as high risk, we typically require deposits to be paid in advance in order to mitigate our credit risk. Additionally, our receivables are collateralized by the vehicle’s fair value, which further mitigates our credit risk. | |||||||||||
The following table presents the credit risk profile by creditworthiness category of our direct financing lease receivables at December 31, 2014: | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Very low risk to low risk | $ | 198,496 | 203,556 | ||||||||
Moderate | 158,790 | 164,761 | |||||||||
Moderately high to high risk | 92,024 | 66,373 | |||||||||
$ | 449,310 | 434,690 | |||||||||
As of December 31, 2014 and 2013, the amount of direct financing lease receivables which were past due was not significant and there were no impaired receivables. Accordingly, there was no material risk of default with respect to the direct financing lease receivables. The allowance for credit losses was $0.3 million and $1 million as of December 31, 2014 and 2013, respectively. | |||||||||||
Leases as Lessee | |||||||||||
We lease vehicles, facilities and office equipment under operating lease agreements. Rental payments on certain vehicle lease agreements vary based on the number of miles run during the period. Generally, vehicle lease agreements specify that rental payments be adjusted periodically based on changes in interest rates and provide for early termination at stipulated values. None of our leasing arrangements contain restrictive financial covenants. | |||||||||||
We periodically enter into sale and leaseback transactions to lower the total cost of funding our operations and to diversify our funding among different types of funding instruments. These sale-leaseback transactions are often executed with third-party financial institutions not deemed to be VIEs. In general, these sale-leaseback transactions result in a reduction in revenue earning equipment and debt on the balance sheet, as proceeds from the sale of revenue earning equipment are used primarily to repay debt. Sale-leaseback transactions accounted for as operating leases will result in reduced depreciation and interest expense and increased equipment rental expense. During 2014, we completed a sale-leaseback transaction of revenue earning equipment with third parties not deemed to be variable interest entities. The leaseback transaction qualified for off-balance sheet treatment. Proceeds from the sale-leaseback transaction totaled $126 million. We did not enter into any sale-leaseback transactions during 2013. During 2012, we completed a sale-leaseback transaction of revenue earning equipment with a third party and the leaseback was accounted for as an operating lease. Proceeds from the sale-leaseback transaction totaled $130 million. | |||||||||||
Certain leases associated with sale-leaseback transactions contain purchase and/or renewal options, as well as limited guarantees for a portion of the lessor’s residual value. Certain residual value guarantees are conditional on termination of the lease prior to its contractual lease term. The amount of residual value guarantees expected to be paid is recognized as rent expense over the expected remaining term of the lease. Facts and circumstances that impact management’s estimates of residual value guarantees include the market for used equipment, the condition of the equipment at the end of the lease and inherent limitations in the estimation process. See Note 18, “Guarantees,” for additional information. | |||||||||||
During 2014, 2013 and 2012, rent expense (including rent of facilities and contingent rentals) was $147 million, $152 million, and $146 million, respectively. | |||||||||||
Lease Payments | |||||||||||
Future minimum payments for leases in effect at December 31, 2014 were as follows: | |||||||||||
As Lessor (1) | As Lessee | ||||||||||
Operating | Direct | Operating | |||||||||
Leases | Financing | Leases | |||||||||
Leases | |||||||||||
(In thousands) | |||||||||||
2015 | $ | 974,684 | 108,433 | 103,624 | |||||||
2016 | 795,201 | 94,174 | 75,094 | ||||||||
2017 | 627,594 | 75,385 | 51,096 | ||||||||
2018 | 465,224 | 59,288 | 48,589 | ||||||||
2019 | 296,028 | 41,929 | 35,874 | ||||||||
Thereafter | 219,924 | 70,101 | 65,646 | ||||||||
Total | $ | 3,378,655 | 449,310 | 379,923 | |||||||
____________________ | |||||||||||
-1 | Amounts do not include contingent rentals, which may be received under certain leases on the basis of miles of used or changes in the Consumer Price Index. Contingent rentals from operating leases included in revenue during 2014, 2013 and 2012 were $318 million, $318 million, and $319 million, respectively. Contingent rentals from direct financing leases included in revenue during 2014, 2013, and 2012 were $11 million in all periods. | ||||||||||
The amounts in the previous table related to the lease of revenue earning equipment are based upon the general assumption that revenue earning equipment will remain on lease for the length of time specified by the respective lease agreements. The future minimum payments presented above related to the lease of revenue earning equipment are not a projection of future lease revenue or expense; no effect has been given to renewals, new business, cancellations, contingent rentals or future rate changes. |
Debt
Debt | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
DEBT | DEBT | |||||||||||||||
Weighted-Average | ||||||||||||||||
Interest Rate | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | Maturities | 2014 | 2013 | ||||||||||||
(In thousands) | ||||||||||||||||
Short-term debt and current portion of long-term debt: | ||||||||||||||||
Short-term debt | 1.3 | % | 1.7 | % | 2015 | $ | 3,773 | 1,315 | ||||||||
Current portion of long-term debt, including capital leases | 8,434 | 258,123 | ||||||||||||||
Total short-term debt and current portion of long-term debt | 12,207 | 259,438 | ||||||||||||||
Long-term debt: | ||||||||||||||||
U.S. commercial paper(1) | 0.35 | % | 0.28 | % | 2018 | 276,694 | 486,939 | |||||||||
Canadian commercial paper(1) | — | % | 1.13 | % | 2018 | — | 11,297 | |||||||||
Global revolving credit facility | 1.6 | % | — | % | 2018 | 11,190 | — | |||||||||
Unsecured U.S. notes – Medium-term notes(1) | 3.29 | % | 3.76 | % | 2015-2025 | 3,772,159 | 3,271,734 | |||||||||
Unsecured U.S. obligations, principally bank term loans | 0.76 | % | 1.45 | % | 2015-2018 | 110,500 | 55,500 | |||||||||
Unsecured foreign obligations | 2.01 | % | 1.99 | % | 2015-2016 | 295,776 | 315,558 | |||||||||
Capital lease obligations | 3.65 | % | 3.81 | % | 2015-2019 | 37,560 | 38,911 | |||||||||
Total before fair market value adjustment | 4,503,879 | 4,179,939 | ||||||||||||||
Fair market value adjustment on notes subject to hedging(2) | 4,830 | 8,171 | ||||||||||||||
4,508,709 | 4,188,110 | |||||||||||||||
Current portion of long-term debt, including capital leases | (8,434 | ) | (258,123 | ) | ||||||||||||
Long-term debt | 4,500,275 | 3,929,987 | ||||||||||||||
Total debt | $ | 4,512,482 | 4,189,425 | |||||||||||||
_________________ | ||||||||||||||||
-1 | We had unamortized original issue discounts of $8 million and $8 million at December 31, 2014 and 2013, respectively. | |||||||||||||||
-2 | The notional amount of the executed interest rate swaps designated as fair value hedges was $600 million and $400 million at December 31, 2014 and 2013, respectively. Refer to Note 17, "Derivatives", for additional information. | |||||||||||||||
Maturities of total debt are as follows: | ||||||||||||||||
Capital Leases | Debt | |||||||||||||||
(In thousands) | ||||||||||||||||
2015 | $ | 9,374 | 4,272 | |||||||||||||
2016 | 8,362 | 860,339 | ||||||||||||||
2017 | 9,325 | 699,484 | ||||||||||||||
2018 | 6,906 | 1,741,992 | ||||||||||||||
2019 | 5,983 | 998,647 | ||||||||||||||
Thereafter | — | 165,357 | ||||||||||||||
Total | 39,950 | 4,470,091 | ||||||||||||||
Imputed interest | (2,390 | ) | ||||||||||||||
Present value of minimum capitalized lease payments | 37,560 | |||||||||||||||
Current portion | (8,434 | ) | ||||||||||||||
Long-term capitalized lease obligation | $ | 29,126 | ||||||||||||||
Debt Facilities | ||||||||||||||||
We maintain a $900 million global revolving credit facility with a syndicate of twelve lending institutions led by Bank of America N.A., Bank of Tokyo-Mitsubishi UFJ, Ltd., BNP Paribas, Mizuho Corporate Bank, Ltd., Royal Bank of Canada, Royal Bank of Scotland Plc, U.S. Bank National Association and Wells Fargo Bank, N.A. The global revolving credit facility is used primarily to finance working capital but can also be used to issue up to $75 million in letters of credit (there were no letters of credit outstanding against the facility at December 31, 2014). At our option, the interest rate on borrowings under the credit facility is based on LIBOR, prime, federal funds or local equivalent rates. The agreement provided for annual facility fees which ranged from 8 basis points to 27.5 basis points and were based on Ryder’s long-term credit ratings. The annual facility fee was 12.5 basis points, which applies to the total facility size of $900 million. The credit facility contains no provisions limiting its availability in the event of a material adverse change to Ryder’s business operations; however, the credit facility does contain standard representations and warranties, events of default, cross-default provisions and certain affirmative and negative covenants. In order to maintain availability of funding, we must maintain a ratio of debt to consolidated net worth of less than or equal to 300%. Net worth, as defined in the credit facility, represents shareholders' equity excluding any accumulated other comprehensive income or loss associated with our pension and other postretirement plans. The ratio at December 31, 2014 was 188%. At December 31, 2014, there was $612 million available under the credit facility, net of outstanding commercial paper borrowings. | ||||||||||||||||
In January 2015, the availability under our global revolving credit facility was increased from $900 million to $1.20 billion and the maturity date was extended from October 2018 to January 2020. The amended agreement provides for annual facility fees which range from 7.5 basis points to 25 basis points and are based on Ryder's long-term credit ratings. The annual facility fee was amended to 10 basis points, which applies to the total facility size of $1.20 billion. There were no changes in the syndicate of lenders nor to the provisions of the agreement. | ||||||||||||||||
Our global revolving credit facility enables us to refinance short-term obligations on a long-term basis. Settlement of short-term commercial paper obligations not expected to require the use of working capital are classified as long-term as we have both the intent and ability to refinance on a long-term basis. In addition, we have the intent and ability to refinance the current portion of long-term debt on a long-term basis. At December 31, 2014, we classified $277 million of short-term commercial paper, $60 million of trade receivables borrowings and $699 million of the current portion of long-term debt as long-term debt. At December 31, 2013, we classified $498 million of short-term commercial paper as long-term debt. | ||||||||||||||||
In May 2014, we issued $400 million of unsecured medium-term notes maturing in September 2019. In February 2014, we issued $350 million of unsecured medium-term notes maturing in June 2019. The proceeds from the notes were used to reduce commercial paper balances and for general corporate purposes. If the notes are downgraded below investment grade following, and as a result of, a change in control, the note holder can require us to repurchase all or a portion of the notes at a purchase price equal to 101% of principal plus accrued and unpaid interest. | ||||||||||||||||
We have a trade receivables purchase and sale program, pursuant to which we sell certain of our domestic trade accounts receivable to a bankruptcy remote, consolidated subsidiary of Ryder, that in turn sells, on a revolving basis, an ownership interest in certain of these accounts receivable to a receivables conduit or committed purchasers. The subsidiary is considered a VIE and is consolidated based on our control of the entity’s activities. We use this program to provide additional liquidity to fund our operations, particularly when it is cost effective to do so. The costs under the program may vary based on changes in interest rates. The available proceeds that may be received under the program are limited to $175 million. In October 2014, we renewed the trade receivables purchase and sale program. If no event occurs which causes early termination, the 364-day program will expire on October 22, 2015. The program contained provisions restricting its availability in the event of a material adverse change to our business operations or the collectibility of the collateralized receivables. At December 31, 2014, $60 million was outstanding under the program. No amounts were outstanding under the program at December 31, 2013. Sales of receivables under this program are accounted for as secured borrowings based on our continuing involvement in the transferred assets. No amounts were outstanding at December 31, 2013. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS | |||||||||||||||
The following tables present our assets and liabilities that are measured at fair value on a recurring basis and the levels of inputs used to measure fair value: | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
At December 31, 2014 Using | ||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Interest rate swaps | Prepaid expenses and other current assets | $ | — | 477 | — | 477 | ||||||||||
Interest rate swaps | DFL and other assets | — | 4,565 | — | 4,565 | |||||||||||
Investments held in Rabbi Trusts: | ||||||||||||||||
Cash and cash equivalents | 4,418 | — | — | 4,418 | ||||||||||||
U.S. equity mutual funds | 23,589 | — | — | 23,589 | ||||||||||||
Foreign equity mutual funds | 4,724 | — | — | 4,724 | ||||||||||||
Fixed income mutual funds | 5,950 | — | — | 5,950 | ||||||||||||
Investments held in Rabbi Trusts | DFL and other assets | 38,681 | — | — | 38,681 | |||||||||||
Total assets at fair value | $ | 38,681 | 5,042 | — | 43,723 | |||||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | Other non-current liabilities | — | 212 | — | 212 | |||||||||||
Total liabilities at fair value | $ | — | 212 | — | 212 | |||||||||||
Fair Value Measurements | ||||||||||||||||
At December 31, 2013 Using | ||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Interest rate swaps | DFL and other assets | $ | — | 9,333 | — | 9,333 | ||||||||||
Investments held in Rabbi Trusts: | ||||||||||||||||
Cash and cash equivalents | 7,101 | — | — | 7,101 | ||||||||||||
U.S. equity mutual funds | 16,479 | — | — | 16,479 | ||||||||||||
Foreign equity mutual funds | 4,323 | — | — | 4,323 | ||||||||||||
Fixed income mutual funds | 4,616 | — | — | 4,616 | ||||||||||||
Investments held in Rabbi Trusts | DFL and other assets | 32,519 | — | — | 32,519 | |||||||||||
Total assets at fair value | $ | 32,519 | 9,333 | — | 41,852 | |||||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | Other non-current liabilities | — | 1,162 | — | 1,162 | |||||||||||
Total liabilities at fair value | $ | — | 1,162 | — | 1,162 | |||||||||||
The following table presents our assets that are measured at fair value on a nonrecurring basis and considered a Level 3 fair value measurement: | ||||||||||||||||
Total Losses (2) | ||||||||||||||||
December 31, | Year ended December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Assets held for sale: | ||||||||||||||||
Revenue earning equipment: (1) | ||||||||||||||||
Trucks | $ | 6,135 | 13,326 | $ | 6,274 | 9,926 | ||||||||||
Tractors | 4,054 | 10,339 | 3,450 | 4,824 | ||||||||||||
Trailers | 789 | 723 | 1,040 | 1,678 | ||||||||||||
Total assets at fair value | $ | 10,978 | 24,388 | $ | 10,764 | 16,428 | ||||||||||
______________ | ||||||||||||||||
-1 | Represents the portion of all revenue earning equipment held for sale that is recorded at fair value, less costs to sell. | |||||||||||||||
-2 | Total losses represent fair value adjustments for all vehicles held for sale throughout the period for which fair value less costs to sell was less than carrying value. | |||||||||||||||
Revenue earning equipment held for sale is stated at the lower of carrying amount or fair value less costs to sell. Only certain vehicles held for sale have carrying amounts greater than the fair value and losses are recorded at the time they arrive at our used truck centers. We typically record gains on the remaining vehicles with carrying amounts greater than fair value at the time they are sold. Losses to reflect changes in fair value are presented within "Other operating expenses" in the Consolidated Statements of Earnings. For revenue earning equipment held for sale, we stratify our fleet by vehicle type (trucks, tractors and trailers), weight class, age and other relevant characteristics and create classes of similar assets for analysis purposes. Fair value was determined based upon recent market prices obtained from our own sales experience for sales of each class of similar assets and vehicle condition. Therefore, our revenue earning equipment held for sale was classified within Level 3 of the fair value hierarchy. During the years ended December 31, 2014, 2013, and 2012, we recorded losses to reflect changes in fair value of $11 million, $16 million and $18 million, respectively. | ||||||||||||||||
Total fair value of debt (excluding capital lease obligations) at December 31, 2014 and 2013 was $4.59 billion and $4.28 billion, respectively. For publicly-traded debt, estimates of fair value are based on market prices. Since our publicly-traded debt is not actively traded, the fair value measurement was classified within Level 2 of the fair value hierarchy. For other debt, fair value is estimated based on rates currently available to us for debt with similar terms and remaining maturities. Therefore, the fair value measurement of our other debt was classified within Level 2 of the fair value hierarchy. The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the immediate or short-term maturities of these financial instruments. |
Derivatives
Derivatives | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||
DERIVATIVES | DERIVATIVES | ||||||||||||
From time to time, we enter into interest rate swap and cap agreements to manage our fixed and variable interest rate exposure and to better match the repricing of debt instruments to that of our portfolio of assets. We assess the risk that changes in interest rates will have either on the fair value of debt obligations or on the amount of future interest payments by monitoring changes in interest rate exposures and by evaluating hedging opportunities. We regularly monitor interest rate risk attributable to both our outstanding or forecasted debt obligations as well as our offsetting hedge positions. This risk management process involves the use of analytical techniques, including cash flow sensitivity analysis, to estimate the expected impact of changes in interest rates on our future cash flows. | |||||||||||||
As of December 31, 2014, we have interest rate swaps outstanding which are designated as fair value hedges whereby we receive fixed interest rate payments in exchange for making variable interest rate payments. The differential to be paid or received is accrued and recognized as interest expense. The following table provides a detail of the swaps outstanding and the related hedged items as of December 31, 2014: | |||||||||||||
Face value of | Aggregate notional | Weighted-average variable | |||||||||||
amount of interest | interest rate on hedged debt | ||||||||||||
as of December 31, | |||||||||||||
Issuance date | Maturity date | medium-term notes | rate swaps | Fixed interest rate | 2014 | 2013 | |||||||
(Dollars in thousands) | |||||||||||||
Feb-11 | Mar-15 | $350,000 | $150,000 | 3.15% | 1.28% | 1.34% | |||||||
May-11 | Jun-17 | $350,000 | $150,000 | 3.50% | 1.42% | 1.44% | |||||||
Nov-13 | Nov-18 | $300,000 | $100,000 | 2.45% | 1.19% | 1.19% | |||||||
Feb-14 | Jun-19 | $350,000 | $100,000 | 2.55% | 1.10% | —% | |||||||
May-14 | Sep-19 | $400,000 | $100,000 | 2.45% | 0.86% | —% | |||||||
Changes in the fair value of our interest rate swaps are offset by changes in the fair value of the debt instrument. Accordingly, there is no ineffectiveness related to the interest rate swaps. The location and amount of (gains) losses on derivative instruments and related hedged items reported in the Consolidated Statements of Earnings were as follows: | |||||||||||||
Location of (Gain) | December 31, | ||||||||||||
Fair Value Hedging Relationship | Loss Recognized in Income | 2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||||
Derivative: Interest rate swap | Interest expense | $ | (3,341 | ) | (8,554 | ) | (5,118 | ) | |||||
Hedged item: Fixed-rate debt | Interest expense | 3,341 | 8,554 | 5,118 | |||||||||
Total | $ | — | — | — | |||||||||
Guarantees
Guarantees | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Guarantees [Abstract] | |||||||||||||||
GUARANTEES | GUARANTEES | ||||||||||||||
We have executed various agreements with third parties that contain standard indemnifications that may require us to indemnify a third party against losses arising from a variety of matters such as lease obligations, financing agreements, environmental matters, and agreements to sell business assets. In each of these instances, payment by Ryder is contingent on the other party bringing about a claim under the procedures outlined in the specific agreement. Normally, these procedures allow us to dispute the other party’s claim. Additionally, our obligations under these agreements may be limited in terms of the amount and/or timing of any claim. We have entered into individual indemnification agreements with each of our independent directors, through which we will indemnify such director acting in good faith against any and all losses, expenses and liabilities arising out of such director’s service as a director of Ryder. The maximum amount of potential future payments under these agreements is generally unlimited. | |||||||||||||||
We cannot predict the maximum potential amount of future payments under certain of these agreements, including the indemnification agreements, due to the contingent nature of the potential obligations and the distinctive provisions that are involved in each individual agreement. Historically, no such payments made by us have had a material adverse effect on our business. We believe that if a loss were incurred in any of these matters, the loss would not have a material adverse impact on our consolidated results of operations or financial position. | |||||||||||||||
At December 31, 2014 and 2013, the maximum determinable exposure of each type of guarantee and the corresponding liability, if any, recorded on the Consolidated Balance Sheets were as follows: | |||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||
Guarantee | Maximum | Carrying | Maximum | Carrying | |||||||||||
Exposure of | Amount of | Exposure of | Amount of | ||||||||||||
Guarantee | Liability | Guarantee | Liability | ||||||||||||
(In thousands) | |||||||||||||||
Vehicle residual value guarantees (end of lease term) — operating leases (1) | $ | 50,615 | $ | — | 24,059 | — | |||||||||
Standby letters of credit | — | — | 6,234 | 6,234 | |||||||||||
Total | $ | 50,615 | $ | — | 30,293 | 6,234 | |||||||||
________________ | |||||||||||||||
-1 | Amounts exclude contingent rentals associated with residual value guarantees on certain vehicles held under operating leases for which the guarantees are conditioned upon disposal of the leased vehicles prior to the end of their lease term. At December 31, 2014 and 2013, our maximum exposure for such guarantees was approximately $225 million and $120 million, respectively, with $0.2 million recorded as a liability at December 31, 2014 and 2013. | ||||||||||||||
We have provided partial end of lease term residual value guarantees as part of the sale leaseback transactions. If the sales proceeds from the final disposition of the specified vehicles are less than the residual value guarantee, we are required to pay the difference to the lessor. The leases expire periodically through 2021. At December 31, 2014, our maximum exposure for such guarantees was approximately $51 million. No liability has been recognized as of December 31, 2014 because we do not expect to pay any guaranteed amounts to the lessor based on current market conditions. The payments associated with the end of lease term residual value guarantees have been included in our future minimum lease payments for leases in effect as of December 31, 2014. See Note 14, "Leases," for further information. | |||||||||||||||
At December 31, 2014 and 2013, we had letters of credit and surety bonds outstanding, which primarily guarantee various insurance activities as noted in the following table: | |||||||||||||||
December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||
Letters of credit | $ | 234,482 | 210,995 | ||||||||||||
Surety bonds | 99,831 | 99,486 | |||||||||||||
Share_Repurchase_Programs
Share Repurchase Programs | 12 Months Ended |
Dec. 31, 2014 | |
Share Repurchase Programs [Abstract] | |
SHARE REPURCHASE PROGRAMS | SHARE REPURCHASE PROGRAMS |
In December 2013, our Board of Directors authorized a share repurchase program intended to mitigate the dilutive impact of shares issued under our various employee stock, stock option and employee stock purchase plans. Under the December 2013 program, management is authorized to repurchase shares of common stock in an amount not to exceed the number of shares issued to employees under the Company’s various employee stock, stock option and employee stock purchase plans from December 1, 2013 through December 31, 2015. The December 2013 program limits aggregate share repurchases to no more than 2 million shares of Ryder common stock. Share repurchases of common stock are made periodically in open-market transactions and are subject to market conditions, legal requirements and other factors. Management established prearranged written plans for the Company under Rule 10b5-1 of the Securities Exchange Act of 1934 as part of the December 2013 program, which allow for share repurchases during Ryder’s quarterly blackout periods as set forth in the trading plan. During 2014, we repurchased and retired approximately 1.3 million shares under this program at an aggregate cost of $106 million . We did not repurchase any shares under this program in 2013. | |
In December 2011, our Board of Directors authorized a share repurchase program intended to mitigate the dilutive impact of shares issued under our various employee stock, stock option and employee stock purchase plans. Under the December 2011 program, management is authorized to repurchase shares of common stock in an amount not to exceed the number of shares issued to employees under the Company’s various employee stock, stock option and employee stock purchase plans from December 1, 2011 through December 13, 2013. The December 2011 program limited aggregate share repurchases to no more than 2 million shares of Ryder common stock. We did not repurchase any shares under this program in 2013. During 2012, we repurchased and retired approximately 0.5 million shares under this program at an aggregate amount of $26 million . |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Equity [Abstract] | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||||
Comprehensive income (loss) presents a measure of all changes in shareholders’ equity except for changes resulting from transactions with shareholders in their capacity as shareholders. The following summary sets forth the components of accumulated other comprehensive loss, net of tax: | ||||||||||||||
Currency | Net Actuarial | Prior Service | Accumulated | |||||||||||
Translation | Loss (1) | Credit (1) | Other | |||||||||||
Adjustments and Other | Comprehensive | |||||||||||||
Loss | ||||||||||||||
(In thousands) | ||||||||||||||
1-Jan-12 | $ | 28,219 | (599,675 | ) | 4,291 | (567,165 | ) | |||||||
Amortization | — | 20,315 | (1,657 | ) | 18,658 | |||||||||
Other current period change | 29,641 | (68,753 | ) | — | (39,112 | ) | ||||||||
31-Dec-12 | 57,860 | (648,113 | ) | 2,634 | (587,619 | ) | ||||||||
Amortization | — | 22,820 | (1,340 | ) | 21,480 | |||||||||
Other current period change | (21,985 | ) | 147,410 | 2,466 | 127,891 | |||||||||
31-Dec-13 | 35,875 | (477,883 | ) | 3,760 | (438,248 | ) | ||||||||
Amortization | — | 14,866 | (2,676 | ) | 12,190 | |||||||||
Pension lump sum settlement expense | — | 61,333 | — | 61,333 | ||||||||||
Other current period change | (71,962 | ) | (184,257 | ) | 674 | (255,545 | ) | |||||||
31-Dec-14 | $ | (36,087 | ) | (585,941 | ) | 1,758 | (620,270 | ) | ||||||
_______________________ | ||||||||||||||
-1 | These amounts are included in the computation of net periodic pension cost and pension settlement charge. See Note 23, "Employee Benefit Plans," for further information. | |||||||||||||
The loss from currency translation adjustments in 2014 of $72 million was due primarily to the weakening of the Canadian Dollar and British Pound against the U.S. Dollar. The loss from currency translation adjustments in 2013 of $22 million was due to the weakening of the Canadian Dollar compared to the U.S. Dollar, which was partially offset by the strengthening of the British Pound. The currency translation adjustment in 2012 of $30 million reflects the strengthening of the Canadian Dollar and the British Pound against the U.S. Dollar. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE | ||||||||||
The following table presents the calculation of basic and diluted earnings per common share from continuing operations: | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands, except per share amounts) | |||||||||||
Earnings per share — Basic: | |||||||||||
Earnings from continuing operations | $ | 220,459 | 243,196 | 200,899 | |||||||
Less: Distributed and undistributed earnings allocated to nonvested stock | (858 | ) | (2,173 | ) | (2,566 | ) | |||||
Earnings from continuing operations available to common shareholders — Basic | $ | 219,601 | 241,023 | 198,333 | |||||||
Weighted average common shares outstanding— Basic | 52,536 | 51,617 | 50,449 | ||||||||
Earnings from continuing operations per common share — Basic | $ | 4.18 | 4.67 | 3.93 | |||||||
Earnings per share — Diluted: | |||||||||||
Earnings from continuing operations | $ | 220,459 | 243,196 | 200,899 | |||||||
Less: Distributed and undistributed earnings allocated to nonvested stock | (853 | ) | (2,159 | ) | (2,556 | ) | |||||
Earnings from continuing operations available to common shareholders — Diluted | $ | 219,606 | 241,037 | 198,343 | |||||||
Weighted average common shares outstanding— Basic | 52,536 | 51,617 | 50,449 | ||||||||
Effect of dilutive equity awards | 500 | 454 | 291 | ||||||||
Weighted average common shares outstanding— Diluted | 53,036 | 52,071 | 50,740 | ||||||||
Earnings from continuing operations per common share — Diluted | $ | 4.14 | 4.63 | 3.91 | |||||||
Anti-dilutive equity awards and market-based restrictive stock rights not included above | 161 | 785 | 2,278 | ||||||||
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS | ||||||||||||||||||
The following table provides information on share-based compensation expense and income tax benefits recognized in 2014, 2013 and 2012: | |||||||||||||||||||
Years ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
(In thousands) | |||||||||||||||||||
Stock option and stock purchase plans | $ | 9,023 | 8,303 | 9,469 | |||||||||||||||
Nonvested stock | 11,882 | 11,007 | 9,395 | ||||||||||||||||
Share-based compensation expense | 20,905 | 19,310 | 18,864 | ||||||||||||||||
Income tax benefit | (7,300 | ) | (6,224 | ) | (6,309 | ) | |||||||||||||
Share-based compensation expense, net of tax | $ | 13,605 | 13,086 | 12,555 | |||||||||||||||
Total unrecognized pre-tax compensation expense related to share-based compensation arrangements at December 31, 2014 was $23 million and is expected to be recognized over a weighted-average period of approximately 1.7 years. The total fair value of equity awards vested during the years ended December 31, 2014, 2013, and 2012 were $18 million, $12 million and $12 million, respectively. | |||||||||||||||||||
Share-Based Incentive Awards | |||||||||||||||||||
Share-based incentive awards are provided to employees under the terms of various share-based compensation plans (collectively, the “Plans”). The Plans are administered by the Compensation Committee of the Board of Directors. Awards under the Plans principally include at-the-money stock options, nonvested stock and cash awards. Nonvested stock awards include grants of market-based, performance-based, and time-vested restricted stock rights. Under the terms of our Plans, dividends may be paid on our nonvested stock awards. Dividends on nonvested stock granted after 2011 are not paid unless the award vests. Upon vesting, the amount of the dividends paid is equal to the aggregate dividends declared on common shares during the period from the date of grant of the award until the date the shares underlying the award are delivered. There are 1.7 million shares authorized and available to be granted under the Plans as of December 31, 2014. There are 1.9 million unused shares available to be granted under the Plans as of December 31, 2014 | |||||||||||||||||||
Stock options are awards which allow employees to purchase shares of our stock at a fixed price. Stock option awards are granted at an exercise price equal to the market price of our stock at the time of grant. These awards, which generally vest one-third each year, are fully vested three years from the grant date. The stock options granted in 2014 and 2013 have contractual terms of ten years and stock options granted in 2012 have contractual terms of seven years. | |||||||||||||||||||
Restricted stock awards are nonvested stock rights that are granted to employees and entitle the holder to shares of common stock as the award vests. Time-vested restricted stock rights typically vest in three years regardless of company performance. The fair value of the time-vested awards is determined and fixed on the grant date based on Ryder’s stock price on the date of grant. | |||||||||||||||||||
Performance-based restricted stock awards (PBRSRs) include a performance-based vesting condition. The awards are segmented into three one-year performance periods. For these awards, up to 125% of the awards may be earned based on Ryder's one-year adjusted return on capital (ROC) measured against an annual ROC target. If earned, employees will receive the grant of stock three years after the grant date, provided they continue to be employed with Ryder, subject to Compensation Committee approval. For accounting purposes, the awards are not considered granted until the Compensation Committee approves the annual ROC target. During 2014 and 2013, 23,000 and 16,000 PBRSRs, respectively, were considered granted for accounting purposes. The fair value of the PBRSRs is determined and fixed on the grant date based on Ryder’s stock price on the date of grant. Share-based compensation expense is recognized on a straight-line basis over the vesting period, based upon the probability that the performance target will be met. | |||||||||||||||||||
Market-based restricted stock awards include a market-based vesting provision. The awards are segmented into three performance periods of one, two and three years. At the end of each performance period, up to 125% of the award may be earned based on Ryder's total shareholder return (TSR) compared to the target TSR of a peer group over the applicable performance period. The 2014 and 2013 awards compared Ryder's TSR to the TSR of a custom peer group. The 2012 award compared Ryder's TSR to the TSR of the S&P 500. If earned, employees will receive the grant of stock at the end of the relevant three year performance period provided they continue to be employed with Ryder, subject to Compensation Committee approval. The fair value of the market-based awards was determined on the date of grant and considers the likelihood of Ryder achieving the market-based condition. Share-based compensation expense is recognized on a straight-line basis over the vesting period and is recognized regardless of whether the awards vest. | |||||||||||||||||||
Certain employees also received cash awards as part of our long-term incentive compensation program. The cash awards have the same vesting provisions as either the market-based restricted stock awards granted in the respective years. The cash awards are accounted for as liability awards as the awards are based upon our own stock performance and are settled in cash. As a result, the liability is adjusted to reflect fair value at the end of each reporting period. The fair value of the market-based cash awards was estimated using a lattice-based option pricing valuation model that incorporates a Monte-Carlo simulation. The liability related to the cash awards was $4 million and $2 million at December 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||
The following table is a summary of compensation expense recognized related to cash awards in addition to share-based compensation expense reported in the previous table. | |||||||||||||||||||
Years ended December 31 | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
(In thousands) | |||||||||||||||||||
Cash awards | $ | 1,900 | 996 | 1,099 | |||||||||||||||
We grant restricted stock units (RSUs) to non-management members of the Board of Directors. Once granted, RSUs are eligible for non-forfeitable dividend equivalents but have no voting rights. The fair value of the awards is determined and fixed on the grant date based on Ryder’s stock price on the date of grant. The board member receives the RSUs upon their departure from the Board. The initial grant of RSUs will not vest unless the director has served a minimum of one year. When the board member receives the RSUs, they are redeemed for an equivalent number of shares of our common stock. Share-based compensation expense is recognized for RSUs in the year the RSUs are granted. | |||||||||||||||||||
Option Awards | |||||||||||||||||||
The following is a summary of option activity under our stock option plans as of and for the year ended December 31, 2014: | |||||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||||
Exercise | Remaining | ||||||||||||||||||
Price | Contractual | ||||||||||||||||||
Term | |||||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||||
Options outstanding at January 1 | 1,717 | $ | 49.99 | ||||||||||||||||
Granted | 407 | 71.49 | |||||||||||||||||
Exercised | (828 | ) | 47.85 | ||||||||||||||||
Forfeited or expired | (27 | ) | 61.41 | ||||||||||||||||
Options outstanding at December 31 | 1,269 | $ | 58.03 | 6.3 | $ | 44,195 | |||||||||||||
Vested and expected to vest at December 31 | 1,193 | $ | 57.64 | 5.8 | $ | 42,003 | |||||||||||||
Exercisable at December 31 | 486 | $ | 48.21 | 3.7 | $ | 21,684 | |||||||||||||
The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between the market price of our stock on the last trading day of the year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options at year-end. The amount changes based on the fair market value of our stock. | |||||||||||||||||||
Information about options in various price ranges at December 31, 2014 follows: | |||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||
Price Ranges | Shares | Weighted- | Weighted- | Shares | Weighted- | ||||||||||||||
Average | Average Exercise | Average Exercise | |||||||||||||||||
Remaining | Price | Price | |||||||||||||||||
Contractual | |||||||||||||||||||
Term | |||||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||||
Less than $50.00 | 255 | 2.5 | $ | 41.45 | 255 | $ | 41.45 | ||||||||||||
50.00-55.00 | 273 | 4.1 | 53.63 | 133 | 53.63 | ||||||||||||||
55.00-60.00 | 334 | 7.6 | 58.23 | 94 | 58.28 | ||||||||||||||
60.00 and over | 407 | 9.1 | 71.2 | 4 | 61.83 | ||||||||||||||
Total | 1,269 | 6.3 | $ | 58.03 | 486 | $ | 48.21 | ||||||||||||
Restricted Stock Awards | |||||||||||||||||||
The following is a summary of the status of Ryder’s nonvested restricted stock awards as of and for the year ended December 31, 2014: | |||||||||||||||||||
Time-Vested | Market-Based | Performance-Based | |||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||
Average | Average | Average | |||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||
(In thousands) | (In thousands) | (In thousands) | |||||||||||||||||
Nonvested stock outstanding at January 1 | 534 | $ | 52.58 | 205 | $ | 33.71 | 15 | $ | 58.27 | ||||||||||
Granted | 186 | 78.31 | 41 | 61.07 | 23 | 71.89 | |||||||||||||
Vested | -186 | 51.83 | — | 25.29 | — | 58.21 | |||||||||||||
Forfeited (1) | -20 | 58.45 | -136 | 27.44 | -3 | 62.74 | |||||||||||||
Nonvested stock outstanding at December 31 | 514 | $ | 61.83 | 110 | $ | 52.52 | 35 | $ | 66.85 | ||||||||||
(1) Includes awards canceled due to performance and market conditions not being achieved. | |||||||||||||||||||
Stock Purchase Plan | |||||||||||||||||||
We maintain an Employee Stock Purchase Plan (ESPP), which enables eligible participants in the U.S. and Canada to purchase full or fractional shares of Ryder common stock through payroll deductions of up to 15% of eligible compensation. The ESPP provides for quarterly offering periods during which shares may be purchased at 85% of the fair market value on either the first or the last trading day of the quarter, whichever is less. Stock purchased under the ESPP must generally be held for 90 days. The amount of shares authorized to be issued under the existing ESPP was 4.5 million at December 31, 2014. There were 0.3 million unused shares available to be purchased under the ESPP at December 31, 2014. | |||||||||||||||||||
The following table summarizes the status of Ryder’s ESPP: | |||||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||||
Exercise | Remaining | ||||||||||||||||||
Price | Contractual | ||||||||||||||||||
Term | |||||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||||
Outstanding at January 1 | — | $ | — | ||||||||||||||||
Granted | 150 | 82.27 | |||||||||||||||||
Exercised | -150 | 82.27 | |||||||||||||||||
Forfeited or expired | — | — | |||||||||||||||||
Outstanding at December 31 | — | $ | — | — | $ | — | |||||||||||||
Exercisable at December 31 | — | $ | — | — | $ | — | |||||||||||||
Share-Based Compensation Fair Value Assumptions | |||||||||||||||||||
The fair value of each option award is estimated on the date of grant using a Black-Scholes-Merton option-pricing valuation model that uses the weighted-average assumptions noted in the table below. Expected volatility is based on historical volatility of our stock and implied volatility from traded options on our stock. The risk-free rate for periods within the contractual life of the stock option award is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the stock option award is granted with a maturity equal to the expected term of the stock option award. We use historical data to estimate stock option exercises and forfeitures within the valuation model. The expected term of stock option awards granted is derived from historical exercise experience under the share-based employee compensation arrangements and represents the period of time that stock option awards granted are expected to be outstanding. The fair value of market-based restricted stock awards is estimated using a lattice-based option-pricing valuation model that incorporates a Monte-Carlo simulation. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by Ryder. | |||||||||||||||||||
The following table presents the weighted-average assumptions used for options granted: | |||||||||||||||||||
Years ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Option plans: | |||||||||||||||||||
Expected dividends | 1.90% | 2.10% | 2.20% | ||||||||||||||||
Expected volatility | 29.10% | 35.10% | 40.70% | ||||||||||||||||
Risk-free rate | 1.30% | 0.70% | 0.60% | ||||||||||||||||
Expected term in years | 4.3 years | 4.3 years | 3.7 years | ||||||||||||||||
Grant-date fair value | $14.99 | $13.97 | $14.07 | ||||||||||||||||
Purchase plan: | |||||||||||||||||||
Expected dividends | 1.70% | 2.20% | 2.70% | ||||||||||||||||
Expected volatility | 20.30% | 28.00% | 32.70% | ||||||||||||||||
Risk-free rate | —% | 0.10% | 0.10% | ||||||||||||||||
Expected term in years | 0.25 years | 0.25 years | 0.25 years | ||||||||||||||||
Grant-date fair value | $15.53 | $11.73 | $9.53 | ||||||||||||||||
Exercise of Employee Stock Options and Purchase Plans | |||||||||||||||||||
The total intrinsic value of options exercised during the years ended December 31, 2014, 2013 and 2012 was $28 million, $30 million, and $6 million, respectively. The total cash received from employees as a result of exercises under all share-based employee compensation arrangements for the years ended December 31, 2014, 2013 and 2012 was $46 million, $87 million, and $28 million, respectively. In connection with these exercises, the tax benefits generated from share-based employee compensation arrangements were $1 million, $5 million, and $1 million for the years ended December 31, 2014, 2013, and 2012, respectively. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS | ||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||
We historically sponsored several defined benefit pension plans covering most employees not covered by union-administered plans, including certain employees in foreign countries. These plans generally provided participants with benefits based on years of service and career-average compensation levels. We have a non-qualified supplemental pension plan covering certain U.S. employees, which provides for incremental pension payments from our funds so that total pension payments equal the amounts that would have been payable from our principal pension plans if it were not for limitations imposed by income tax regulations. The accrued pension liability related to this plan was $51 million and $44 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
The retirement benefits for non-grandfathered and certain non-union employees in the U.S., Canada and the United Kingdom (U.K.) are frozen. Non-grandfathered plan participants ceased accruing benefits under the plan as of the respective amendment effective date and began receiving an enhanced benefit under a defined contribution plan. All retirement benefits earned as of the amendment effective date were fully preserved and will be paid in accordance with the plan and legal requirements. The funding policy for these plans is to make contributions based on annual service costs plus amortization of unfunded past service liability, but not greater than the maximum allowable contribution deductible for federal income tax purposes. We may, from time to time, make voluntary contributions to our pension plans, which exceed the amount required by statute. The majority of the plans’ assets are invested in a master trust that, in turn, is invested primarily in commingled funds whose investments are listed stocks and bonds. | |||||||||||||||||||||||
Pension Expense | |||||||||||||||||||||||
Pension expense from continuing operations was as follows: | |||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Company-administered plans: | |||||||||||||||||||||||
Service cost | 13,023 | 15,991 | 15,479 | ||||||||||||||||||||
Interest cost | 100,909 | 89,682 | 94,605 | ||||||||||||||||||||
Expected return on plan assets | (115,410 | ) | (106,150 | ) | (96,342 | ) | |||||||||||||||||
Pension lump sum settlement expense | 97,231 | — | — | ||||||||||||||||||||
Census data adjustment | — | 3,905 | — | ||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||
Net actuarial loss | 23,573 | 35,282 | 31,200 | ||||||||||||||||||||
Prior service credit | (1,788 | ) | (1,818 | ) | (2,275 | ) | |||||||||||||||||
117,538 | 36,892 | 42,667 | |||||||||||||||||||||
Union-administered plans | 21,118 | 11,226 | 6,746 | ||||||||||||||||||||
Net pension expense | $ | 138,656 | 48,118 | 49,413 | |||||||||||||||||||
Company-administered plans: | |||||||||||||||||||||||
U.S. | $ | 118,797 | 37,636 | 38,992 | |||||||||||||||||||
Foreign | (1,259 | ) | (744 | ) | 3,675 | ||||||||||||||||||
117,538 | 36,892 | 42,667 | |||||||||||||||||||||
Union-administered plans | 21,118 | 11,226 | 6,746 | ||||||||||||||||||||
$ | 138,656 | 48,118 | 49,413 | ||||||||||||||||||||
In October 2014, we offered approximately 11,000 former vested employees in our U.S. defined benefit plan a one-time option to receive a lump sum distribution of their benefits. Approximately 6,200 former employees representing 60% of former vested employees offered accepted the lump sum distribution offer. In December 2014, we made payments totaling $224 million from the U.S. defined benefit plan assets, which resulted in a settlement of $259 million, representing approximately 12% of our U.S. pension plan obligations. We recognized pension lump sum settlement expense of $97 million for unrecognized actuarial losses as a result of the partial settlement of our pension plan liability. The amount of the lump sum settlement expense is based on the proportionate amount of unrecognized U.S. actuarial net losses equal to the settled percentage of our pension benefit obligation. | |||||||||||||||||||||||
During 2013, we determined certain census data used to actuarially determine the value of our pension benefit obligation for the years 1998 to 2012 was inaccurate. We recorded a one-time, non-cash charge of $4 million to adjust our pension benefit obligation for prior year census data. We recorded the cumulative adjustment within "Selling, general and administrative expenses" in our Consolidated Statement of Earnings as the impact of revising our pension benefit obligation was not material to our consolidated financial statements in any individual prior period, and the cumulative amount was not material to 2013 results. | |||||||||||||||||||||||
The following table sets forth the weighted-average actuarial assumptions used for Ryder’s pension plans in determining annual pension expense: | |||||||||||||||||||||||
U.S. Plans | Foreign Plans | ||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Discount rate | 5.00% | 4.10% | 4.90% | 4.57% | 4.43% | 4.76% | |||||||||||||||||
Rate of increase in compensation levels | 3.00% | 4.00% | 4.00% | 3.09% | 3.55% | 3.54% | |||||||||||||||||
Expected long-term rate of return on plan assets | 6.50% | 6.80% | 7.05% | 5.94% | 6.57% | 6.00% | |||||||||||||||||
Gain and loss amortization in years | 23 | 23 | 24 | 27 | 26 | 27 | |||||||||||||||||
The return on plan assets assumption reflects the weighted-average of the expected long-term rates of return for the broad categories of investments held in the plans. The expected long-term rate of return is adjusted when there are fundamental changes in expected returns or in asset allocation strategies of the plan assets. | |||||||||||||||||||||||
Obligations and Funded Status | |||||||||||||||||||||||
The following table sets forth the benefit obligations, assets and funded status associated with our pension plans: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Change in benefit obligations: | |||||||||||||||||||||||
Benefit obligations at January 1 | $ | 2,104,749 | 2,207,421 | ||||||||||||||||||||
Service cost | 13,023 | 15,991 | |||||||||||||||||||||
Interest cost | 100,909 | 89,682 | |||||||||||||||||||||
Actuarial loss (gain) | 380,595 | (129,259 | ) | ||||||||||||||||||||
Pension settlement | (259,319 | ) | — | ||||||||||||||||||||
Benefits paid | (87,020 | ) | (82,120 | ) | |||||||||||||||||||
Foreign currency exchange rate changes | (31,822 | ) | 3,034 | ||||||||||||||||||||
Benefit obligations at December 31 | 2,221,115 | 2,104,749 | |||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||
Fair value of plan assets at January 1 | 1,832,490 | 1,612,927 | |||||||||||||||||||||
Actual return on plan assets | 178,061 | 201,019 | |||||||||||||||||||||
Employer contribution | 107,483 | 96,186 | |||||||||||||||||||||
Benefits paid | (87,020 | ) | (82,120 | ) | |||||||||||||||||||
Pension settlement | (223,654 | ) | — | ||||||||||||||||||||
Foreign currency exchange rate changes | (31,943 | ) | 4,478 | ||||||||||||||||||||
Fair value of plan assets at December 31 | 1,775,417 | 1,832,490 | |||||||||||||||||||||
Funded status | $ | (445,698 | ) | (272,259 | ) | ||||||||||||||||||
Funded percent | 80 | % | 87 | % | |||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets consisted of: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Noncurrent asset | $ | 2,698 | 23,556 | ||||||||||||||||||||
Current liability | (3,739 | ) | (3,660 | ) | |||||||||||||||||||
Noncurrent liability | (444,657 | ) | (292,155 | ) | |||||||||||||||||||
Net amount recognized | $ | (445,698 | ) | (272,259 | ) | ||||||||||||||||||
Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Prior service credit | $ | (195 | ) | (2,153 | ) | ||||||||||||||||||
Net actuarial loss | 905,976 | 745,356 | |||||||||||||||||||||
Net amount recognized | $ | 905,781 | 743,203 | ||||||||||||||||||||
In 2015, we expect to recognize the remainder of the prior service credit and $32 million of the net actuarial loss as a component of pension expense. | |||||||||||||||||||||||
The following table sets forth the weighted-average actuarial assumptions used in determining funded status: | |||||||||||||||||||||||
U.S. Plans | Foreign Plans | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Discount rate | 4.15% | 5.00% | 3.69% | 4.58% | |||||||||||||||||||
Rate of increase in compensation levels | 3.00% | 3.00% | 3.09% | 3.09% | |||||||||||||||||||
At December 31, 2014 and 2013, our pension obligations (accumulated benefit obligations (ABO) and projected benefit obligations (PBO) greater than the fair value of related plan assets for our U.S. and foreign plans were as follows: | |||||||||||||||||||||||
U.S. Plans | Foreign Plans | Total | |||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Accumulated benefit obligations | $ | 1,689,191 | 1,628,407 | 487,604 | 445,993 | 2,176,795 | 2,074,400 | ||||||||||||||||
Plans with ABO in excess of plan assets: | |||||||||||||||||||||||
PBO | $ | 1,728,643 | 1,656,086 | 9,172 | 9,303 | 1,737,815 | 1,665,389 | ||||||||||||||||
ABO | $ | 1,689,191 | 1,628,407 | 5,620 | 7,740 | 1,694,811 | 1,636,147 | ||||||||||||||||
Fair value of plan assets | $ | 1,289,621 | 1,369,574 | — | — | 1,289,621 | 1,369,574 | ||||||||||||||||
Plans with PBO in excess of plan assets: | |||||||||||||||||||||||
PBO | $ | 1,728,643 | 1,656,086 | 9,172 | 9,303 | 1,737,815 | 1,665,389 | ||||||||||||||||
ABO | $ | 1,689,191 | 1,628,407 | 5,620 | 7,740 | 1,694,811 | 1,636,147 | ||||||||||||||||
Fair value of plan assets | $ | 1,289,621 | 1,369,574 | — | — | 1,289,621 | 1,369,574 | ||||||||||||||||
Plan Assets | |||||||||||||||||||||||
Our pension investment strategy is to reduce the effects of future volatility on the fair value of our pension assets relative to our pension liabilities. We increase our allocation of high quality, longer-term fixed income securities and reduce our allocation of equity investments as the funded status of the plans improve. The plans utilize several investment strategies, including actively and passively managed equity and fixed income strategies. The investment policy establishes targeted allocations for each asset class that incorporate measures of asset and liability risks. Deviations between actual pension plan asset allocations and targeted asset allocations may occur as a result of investment performance and changes in the funded status from time to time. Rebalancing of our pension plan asset portfolios is evaluated periodically and rebalanced if actual allocations exceed an acceptable range. U.S. plans account for approximately 75% of our total pension plan assets. Equity securities primarily include investments in both domestic and international common collective trusts and publicly traded equities. Fixed income securities primarily include domestic collective trusts and corporate bonds. Other types of investments include private equity fund-of-funds and hedge fund-of-funds. Equity and fixed income securities in our international plans include actively and passively managed mutual funds. | |||||||||||||||||||||||
The following table presents the fair value of each major category of pension plan assets and the level of inputs used to measure fair value as of December 31, 2014 and 2013: | |||||||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
Asset Category | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
U.S. common collective trusts | $ | 421,185 | — | 421,185 | — | ||||||||||||||||||
Foreign common collective trusts | 405,224 | — | 405,224 | — | |||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
Corporate bonds | 70,999 | — | 70,999 | — | |||||||||||||||||||
Common collective trusts | 788,282 | — | 788,282 | — | |||||||||||||||||||
Private equity and hedge funds | 89,727 | — | — | 89,727 | |||||||||||||||||||
Total | $ | 1,775,417 | — | 1,685,690 | 89,727 | ||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Asset Category | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
U.S. companies | $ | 63,346 | 63,346 | — | — | ||||||||||||||||||
U.S. common collective trusts | 406,358 | — | 406,358 | — | |||||||||||||||||||
Foreign common collective trusts | 431,933 | — | 431,933 | — | |||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
Corporate bonds | 59,917 | — | 59,917 | — | |||||||||||||||||||
Common collective trusts | 794,437 | — | 794,437 | — | |||||||||||||||||||
Private equity and hedge funds | 76,499 | — | — | 76,499 | |||||||||||||||||||
Total | $ | 1,832,490 | 63,346 | 1,692,645 | 76,499 | ||||||||||||||||||
The following is a description of the valuation methodologies used for our pension assets as well as the level of input used to measure fair value: | |||||||||||||||||||||||
Equity securities — These investments include common and preferred stocks and index common collective trusts that track U.S. and foreign indices. Fair values for the common and preferred stocks were based on quoted prices in active markets and were therefore classified within Level 1 of the fair value hierarchy. The common collective trusts were valued at the unit prices established by the funds’ sponsors based on the fair value of the assets underlying the funds. Since the units of the funds are not actively traded, the fair value measurements have been classified within Level 2 of the fair value hierarchy. | |||||||||||||||||||||||
Fixed income securities — These investments include investment grade bonds of U.S. issuers from diverse industries, government issuers, index common collective trusts that track the Barclays Aggregate Index and other fixed income investments (primarily mortgage-backed securities). Fair values for the corporate bonds were valued using third-party pricing services. These sources determine prices utilizing market income models which factor in, where applicable, transactions of similar assets in active markets, transactions of identical assets in infrequent markets, interest rates, bond or credit default swap spreads and volatility. Since the corporate bonds are not actively traded, the fair value measurements have been classified within Level 2 of the fair value hierarchy. The common collective trusts were valued at the unit prices established by the funds’ sponsors based on the fair value of the assets underlying the funds. Since the units of the funds are not actively traded, the fair value measurements have been classified within Level 2 of the fair value hierarchy. The other investments are not actively traded and fair values are estimated using bids provided by brokers, dealers or quoted prices of similar securities with similar characteristics or pricing models. Therefore, the other investments have been classified within Level 2 of the fair value hierarchy. | |||||||||||||||||||||||
Private equity and hedge funds — These investments represent limited partnership interests in private equity and hedge funds. The partnership interests are valued by the general partners based on the underlying assets in each fund. The limited partnership interests are valued using unobservable inputs and have been classified within Level 3 of the fair value hierarchy. | |||||||||||||||||||||||
The following table presents a summary of changes in the fair value of the pension plans’ Level 3 assets for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Beginning balance at January 1 | $ | 76,499 | 71,207 | ||||||||||||||||||||
Return on plan assets: | |||||||||||||||||||||||
Relating to assets still held at the reporting date | 4,903 | 4,258 | |||||||||||||||||||||
Relating to assets sold during the period | 1,882 | 2,194 | |||||||||||||||||||||
Purchases, sales, settlements and expenses | 6,443 | (1,160 | ) | ||||||||||||||||||||
Ending balance at December 31 | $ | 89,727 | 76,499 | ||||||||||||||||||||
The following table details pension benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter: | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
2015 | $ | 94,093 | |||||||||||||||||||||
2016 | 98,874 | ||||||||||||||||||||||
2017 | 103,272 | ||||||||||||||||||||||
2018 | 108,311 | ||||||||||||||||||||||
2019 | 113,078 | ||||||||||||||||||||||
2020-2024 | 622,761 | ||||||||||||||||||||||
For 2015, required pension contributions to our pension plans are estimated to be $39 million. | |||||||||||||||||||||||
Multi-employer Plans | |||||||||||||||||||||||
We also participate in multi-employer plans that provide defined benefits to certain employees covered by collective-bargaining agreements. Such plans are usually administered by a board of trustees comprised of the management of the participating companies and labor representatives. The net pension cost of these plans is equal to the annual contribution determined in accordance with the provisions of negotiated labor contracts. Assets contributed to such plans are not segregated or otherwise restricted to provide benefits only to our employees. The risks of participating in these multi-employer plans are different from single-employer plans in the following respects: 1) assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees and former employees of other participating employers; 2) if a participating employer is no longer able to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers at annual contribution rates under the collective bargaining agreements; 3) if there is a mass withdrawal of substantially all employers from the plan, we may be required to pay that plan an annual contribution based on historical contribution levels as prescribed by federal statute; and 4) if we choose to stop participating in some of our multi-employer plans, we may be required to pay those plans an amount based on the underfunded status of the plan, which is referred to as a withdrawal liability. | |||||||||||||||||||||||
During 2014, we recorded estimated pension settlement charges of $13 million related to the transition of employees from two U.S. multi-employer plans into another multi-employer plan in which we participate, and our exit from two U.S. multi-employer pension plans. During 2013, we recorded estimated pension settlement charges of $3 million for the exit from a U.S. multi-employer pension plan and the restructured agreement with another U.S. multi-employer pension plan. These charges were recorded within "Selling, general, and administrative expenses" in our Consolidated Statement of Earnings and is included in the Union-administered plans expense. | |||||||||||||||||||||||
Our participation in these plans is outlined in the table below. Unless otherwise noted, the most recent Pension Protection Act zone status available in 2014 and 2013 is for the plan years ended December 31, 2013 and December 31, 2012, respectively. The zone status is based on information that we received from the plan. Among other factors, plans in the red zone are generally less than sixty-five percent funded, plans in the yellow zone are less than eighty percent funded, and plans in the green zone are at least eighty percent funded. | |||||||||||||||||||||||
Pension Protection Act Zone Status | Ryder Contributions | Expiration Date(s) of Collective-Bargaining Agreement(s) | |||||||||||||||||||||
Pension Fund | Employer Identification Number | 2014 | 2013 | FIP/RP Status Pending/ Implemented (1) | 2014 | 2013 | 2012 | Surcharge Imposed | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Western Conference Teamsters | 91-6145047 | Green | Green | No | $ | 2,315 | 2,180 | 1,943 | No | 1/12/15 to 6/30/19 | |||||||||||||
IAM National | 51-6031295 | Green | Green | No | 3,311 | 2,987 | 2,038 | No | 9/14/15 to 9/30/19 | ||||||||||||||
Automobile Mechanics | 36-6042061 | Red | Red | RP Adopted | 1,632 | 1,530 | 1,527 | Yes | 5/31/16 to 10/31/17 | ||||||||||||||
Local No. 701 | |||||||||||||||||||||||
Central States Southeast and Southwest Areas | 36-6044243 | Red | Red | RP adopted | 211 | 226 | 226 | No | 10/31/15 to 5/31/17 | ||||||||||||||
Other funds | 1,085 | 1,483 | 1,012 | ||||||||||||||||||||
Total contributions | 8,554 | 8,406 | 6,746 | ||||||||||||||||||||
Pension settlement charges | 12,564 | 2,820 | — | ||||||||||||||||||||
Union-administered plans | $ | 21,118 | 11,226 | 6,746 | |||||||||||||||||||
_____________ | |||||||||||||||||||||||
-1 | The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. | ||||||||||||||||||||||
Our contributions are impacted by changes in contractual contributions rates as well as changes in the number of employees covered by each plan. Our contributions to the International Association of Machinists Motor City Pension Fund represented more than 5% of the total plan contributions for the plan year ended June 30, 2014. We have exited out of this multi-employer plan as of December 31, 2014. | |||||||||||||||||||||||
Savings Plans | |||||||||||||||||||||||
Employees who do not actively participate in pension plans and are not covered by union-administered plans are generally eligible to participate in enhanced savings plans. These plans provide for (i) a company contribution even if employees do not make contributions, (ii) a company match of employee contributions of eligible pay, subject to tax limits and (iii) a discretionary company match. Savings plan costs totaled $35 million in 2014, $35 million in 2013, and $33 million in 2012. | |||||||||||||||||||||||
Deferred Compensation and Long-Term Compensation Plans | |||||||||||||||||||||||
We have deferred compensation plans that permit eligible U.S. employees, officers and directors to defer a portion of their compensation. The deferred compensation liability, including Ryder matching amounts and accumulated earnings, totaled $40 million and $34 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
We have established grantor trusts (Rabbi Trusts) to provide funding for benefits payable under the supplemental pension plan, deferred compensation plans and long-term incentive compensation plans. The assets held in the trusts at December 31, 2014 and 2013 amounted to $41 million and $35 million, respectively. The Rabbi Trusts’ assets consist of short-term cash investments and a managed portfolio of equity securities, including our common stock. These assets, except for the investment in our common stock, are included in “Direct financing leases and other assets” because they are available to our general creditors in the event of insolvency. The equity securities are classified as trading securities and stated at fair value. Both realized and unrealized gains and losses are included in “Miscellaneous income, net.” The Rabbi Trusts’ investment of $2 million and $2 million in our common stock at December 31, 2014 and 2013, respectively, is reflected at historical cost and recorded against shareholders’ equity. | |||||||||||||||||||||||
Other Postretirement Benefits | |||||||||||||||||||||||
We sponsor plans that provide retired U.S. and Canadian employees with certain healthcare and life insurance benefits. Substantially all U.S. and Canadian employees not covered by union-administered health and welfare plans are eligible for the healthcare benefits. Healthcare benefits for our principal plan are generally provided to qualified retirees under age 65 and eligible dependents. This plan requires employee contributions that vary based on years of service and include provisions that limit our contributions. Effective January 1, 2014, we made amendments to our healthcare benefits for early retirees which modified future eligibility requirements for non-grandfathered retirees in the U.S. The post-retirement medical plan was closed to participants who were not at least age 52 with 12 years of service as of December 31, 2013. | |||||||||||||||||||||||
Total postretirement benefit expense was as follows: | |||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Service cost | $ | 446 | 981 | 1,095 | |||||||||||||||||||
Interest cost | 1,421 | 1,580 | 1,980 | ||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||
Net actuarial gain | (725 | ) | (14 | ) | (20 | ) | |||||||||||||||||
Prior service credit | (2,459 | ) | (231 | ) | (231 | ) | |||||||||||||||||
Postretirement benefit (income) expense | $ | (1,317 | ) | 2,316 | 2,824 | ||||||||||||||||||
U.S. | $ | (1,839 | ) | 1,625 | 2,142 | ||||||||||||||||||
Foreign | 522 | 691 | 682 | ||||||||||||||||||||
$ | (1,317 | ) | 2,316 | 2,824 | |||||||||||||||||||
The following table sets forth the weighted-average discount rates used in determining annual postretirement benefit expense: | |||||||||||||||||||||||
U.S. Plan | Foreign Plan | ||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Discount rate | 5.00% | 4.10% | 4.90% | 4.80% | 4.00% | 4.50% | |||||||||||||||||
Our postretirement benefit plans are not funded. The following table sets forth the benefit obligations associated with our postretirement benefit plans: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Benefit obligations at January 1 | $ | 30,788 | 40,599 | ||||||||||||||||||||
Service cost | 446 | 981 | |||||||||||||||||||||
Interest cost | 1,421 | 1,580 | |||||||||||||||||||||
Actuarial gain | (1,010 | ) | (9,332 | ) | |||||||||||||||||||
Benefits paid | (1,989 | ) | (2,515 | ) | |||||||||||||||||||
Foreign currency exchange rate changes | (655 | ) | (525 | ) | |||||||||||||||||||
Benefit obligations at December 31 | $ | 29,001 | 30,788 | ||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets consisted of: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Current liability | $ | 2,112 | 2,414 | ||||||||||||||||||||
Noncurrent liability | 26,889 | 28,374 | |||||||||||||||||||||
Amount recognized | $ | 29,001 | 30,788 | ||||||||||||||||||||
Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Prior service credit | $ | (2,527 | ) | (4,986 | ) | ||||||||||||||||||
Net actuarial gain | (5,933 | ) | (6,239 | ) | |||||||||||||||||||
Net amount recognized | $ | (8,460 | ) | (11,225 | ) | ||||||||||||||||||
In 2015, we expect to recognize approximately $2 million of the prior service credit as a component of postretirement benefit expense. The amount of net actuarial gain we expect to recognize in 2015 as a component of total postretirement benefit expense is not material. | |||||||||||||||||||||||
Our annual measurement date is December 31 for both U.S. and foreign postretirement benefit plans. Assumptions used in determining accrued postretirement benefit obligations were as follows: | |||||||||||||||||||||||
U.S. Plan | Foreign Plan | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Discount rate | 4.15 | % | 5 | % | 4 | % | 4.8 | % | |||||||||||||||
Rate of increase in compensation levels | 3 | % | 3 | % | 3 | % | 3 | % | |||||||||||||||
Healthcare cost trend rate assumed for next year | 7 | % | 7.25 | % | 6 | % | 6.5 | % | |||||||||||||||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 5 | % | 5 | % | 5 | % | 5 | % | |||||||||||||||
Year that the rate reaches the ultimate trend rate | 2023 | 2023 | 2017 | 2017 | |||||||||||||||||||
Changing the assumed healthcare cost trend rates by 1% in each year would not have a material effect on the accumulated postretirement benefit obligation at December 31, 2014 or annual postretirement benefit expense for 2014. | |||||||||||||||||||||||
The following table details other postretirement benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter: | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
2015 | $ | 2,156 | |||||||||||||||||||||
2016 | 2,273 | ||||||||||||||||||||||
2017 | 2,324 | ||||||||||||||||||||||
2018 | 2,376 | ||||||||||||||||||||||
2019 | 2,404 | ||||||||||||||||||||||
2020-2024 | 10,824 | ||||||||||||||||||||||
Environmental_Matters
Environmental Matters | 12 Months Ended |
Dec. 31, 2014 | |
Environmental Remediation Obligations [Abstract] | |
ENVIRONMENTAL MATTERS | ENVIRONMENTAL MATTERS |
Our operations involve storing and dispensing petroleum products, primarily diesel fuel, regulated under environmental protection laws. These laws require us to eliminate or mitigate the effect of such substances on the environment. In response to these requirements, we continually upgrade our operating facilities and implement various programs to detect and minimize contamination. In addition, we have received notices from the Environmental Protection Agency (EPA) and others that we have been identified as a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act, the Superfund Amendments and Reauthorization Act and similar state statutes and may be required to share in the cost of cleanup of 19 identified disposal sites. | |
Our environmental expenses which are presented within “Cost of fuel services” in our Consolidated Statements of Earnings, consist of remediation costs as well as normal recurring expenses such as licensing, testing and waste disposal fees. These expenses totaled $7 million in 2014, $9 million in 2013 and $7 million in 2012. The carrying amount of our environmental liabilities was $12 million and $13 million at December 31, 2014 and 2013, respectively. Our asset retirement obligations related to fuel tanks to be removed are not included above and are recorded within “Accrued expenses and other current liabilities” and “Other non-current liabilities” in our Consolidated Balance Sheets. | |
The ultimate cost of our environmental liabilities cannot presently be projected with certainty due to the presence of several unknown factors, primarily the level of contamination, the effectiveness of selected remediation methods, the stage of investigation at individual sites, the determination of our liability in proportion to other responsible parties and the recoverability of such costs from third parties. Based on information presently available, we believe that the ultimate disposition of these matters, although potentially material to the results of operations in any one year, will not have a material adverse effect on our financial condition or liquidity. |
Other_Items_Impacting_Comparab
Other Items Impacting Comparability | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Items Impacting Comparability [Abstract] | ||||||||||||
OTHER ITEMS IMPACTING COMPARABILITY | OTHER ITEMS IMPACTING COMPARABILITY | |||||||||||
Our primary measure of segment performance as shown in Note 29, "Segment Reporting", excludes certain items we do not believe are representative of the ongoing operations of the segment. Excluding these items from our segment measure of performance allows for better year over year comparison: | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Pension lump sum settlement loss(1) | $ | (97,231 | ) | — | — | |||||||
Pension settlement charges (1) | (12,564 | ) | (2,820 | ) | — | |||||||
Restructuring and other (charges) recoveries, net(2) | (2,387 | ) | 470 | (8,070 | ) | |||||||
Acquisition-related tax adjustment | (1,808 | ) | — | — | ||||||||
Acquisition transaction costs (3) | (566 | ) | — | (368 | ) | |||||||
Consulting fees | (400 | ) | — | — | ||||||||
Foreign currency translation benefit | — | 1,904 | — | |||||||||
Superstorm Sandy vehicle-related recoveries (losses) | — | 600 | (8,230 | ) | ||||||||
Restructuring and other (charges) recoveries, net and other items | $ | (114,956 | ) | $ | 154 | $ | (16,668 | ) | ||||
_______________ | ||||||||||||
-1 | See Note 23, "Employee Benefit Plans," for additional information. | |||||||||||
-2 | Refer to Note 4, "Restructuring and Other Charges (Recoveries),” for additional information. | |||||||||||
-3 | See Note 3, "Acquisitions," for additional information | |||||||||||
During 2014, we incurred charges of $2 million related to tax adjustments for the 2011 Hill Hire acquisition. We recorded the cumulative adjustment within “Selling, general and administrative expenses” in our Consolidated Statements of Earnings as the impact of the adjustments was not material to our consolidated financial statements in any individual prior period, and the cumulative amount is not material to 2014 results. During 2014, we incurred charges of $0.4 million related to professional fees associated with cost savings initiatives. This charge was recorded within “Selling, general and administrative expenses” in our Consolidated Statements of Earnings. | ||||||||||||
During 2013, we recognized a benefit of $2 million from the recognition of the accumulated currency translation adjustment from a FMS foreign operation which substantially liquidated its net assets. This benefit was recorded within “Miscellaneous income, net” in our Consolidated Statements of Earnings. | ||||||||||||
During 2013, we recognized a benefit of $1 million from the recovery of Superstorm Sandy losses. In the fourth quarter of 2012, we incurred $8 million of losses for property damage to vehicles owned by full service lease customers for which Ryder had liability under certain agreements. The 2013 benefit and the 2012 charge were both recorded within “Cost of services” in our Consolidated Statements of Earnings. |
Other_Matters
Other Matters | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
OTHER MATTERS | OTHER MATTERS |
We are a party to various claims, complaints and proceedings arising in the ordinary course of our continuing business operations including but not limited to those relating to commercial and employment claims, environmental matters, risk management matters (e.g. vehicle liability, workers’ compensation, etc.) and administrative assessments primarily associated with operating taxes. We have established loss provisions for matters in which losses are probable and can be reasonably estimated. For matters from continuing operations where a reserve has not been established and for which we believe a loss is reasonably possible, as well as for matters where a reserve has been recorded but for which an exposure to loss in excess of the amount accrued is reasonably possible, we believe that such losses will not have a material effect on our consolidated financial statements. | |
Our estimates regarding potential losses and materiality are based on our judgment and assessment of the claims utilizing currently available information. Although we will continue to reassess our reserves and estimates based on future developments, our objective assessment of the legal merits of such claims may not always be predictive of the outcome and actual results may vary from our current estimates. | |
Although we discontinued our South American operations in 2009, we continue to be party to various federal, state and local legal proceedings involving labor matters, tort claims and tax assessments. We have established loss provisions for any matters where we believe a loss is probable and can be reasonably estimated. Other than with respect to the matters discussed below, for matters where a reserve has not been established and for which we believe a loss is reasonably possible, as well as for matters where a reserve has been recorded but for which an exposure to loss in excess of the amount accrued is reasonably possible, we believe that such losses will not have a material effect on our consolidated financial statements. | |
In Brazil, we were assessed $5 million (before and after tax) in prior years for various federal income taxes and social contribution taxes for the 1997 and 1998 tax years. We successfully overturned these federal tax assessments in the lower courts; however, there is a reasonable possibility that these rulings could be reversed and we would be required to pay the assessments. We believe it is more likely than not that our position will ultimately be sustained if appealed and no amounts have been reserved for these matters. We are entitled to indemnification for a portion of any resulting liability on these federal tax claims which, if honored, would reduce the estimated loss. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||
Supplemental cash flow information was as follows: | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Interest paid | $ | 139,595 | 132,946 | 126,764 | |||||||
Income taxes paid | 11,382 | 13,063 | 11,613 | ||||||||
Changes in accounts payable related to purchases of revenue earning equipment | 39,071 | 43,745 | 27,528 | ||||||||
Operating and revenue earning equipment acquired under capital leases (1) | 7,972 | 5,698 | 20,670 | ||||||||
Fair value of debt assumed on acquisition | — | — | 379 | ||||||||
____________________________ | |||||||||||
(1) The 2012 amount includes $20 million of capital leases assumed in the Euroway acquisition. | |||||||||||
In both 2014 and 2013, we paid $2 million related to acquisitions completed in prior years. |
Miscellaneous_Income_Net
Miscellaneous Income, Net | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
MISCELLANEOUS INCOME, NET | MISCELLANEOUS INCOME, NET | |||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Contract settlement | $ | 3,014 | $ | — | $ | — | ||||||
Gains on sales of operating property and equipment | 2,909 | 1,020 | 4,456 | |||||||||
Business interruption insurance recoveries | 808 | 2,743 | 1,991 | |||||||||
Foreign currency translation benefit (1) | — | 1,904 | — | |||||||||
Rabbi trust investment (expense) income | 2,726 | 4,475 | 1,497 | |||||||||
Other, net | 4,156 | 5,230 | 3,783 | |||||||||
Total | $ | 13,613 | $ | 15,372 | $ | 11,727 | ||||||
(1) Refer to Note 25, "Other Items Impacting Comparability," for additional information |
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING | ||||||||||||||||
We operate in two business segments: Fleet Management Solutions (FMS), which provides full service leasing, commercial rental, contract maintenance, contract-related maintenance of trucks, tractors and trailers to customers principally in the U.S., Canada and the U.K.; and Supply Chain Solutions (SCS), which provides comprehensive supply chain solutions including distribution and transportation services in North America and Asia. The SCS segment also provides dedicated services, which includes vehicles and drivers as part of a dedicated transportation solution in the U.S. | |||||||||||||||||
Our primary measurement of segment financial performance, defined as “Earnings Before Tax” (EBT) from continuing operations, includes an allocation of CSS and excludes non-operating pension costs, restructuring and other charges, net described in Note 4, “Restructuring and Other Charges (Recoveries)” and excludes the items discussed in Note 25, “Other Items Impacting Comparability.” CSS represents those costs incurred to support all business segments, including human resources, finance, corporate services, public affairs, information technology, health and safety, legal and corporate communications. The objective of the EBT measurement is to provide clarity on the profitability of each business segment and, ultimately, to hold leadership of each business segment and each operating segment within each business segment accountable for their allocated share of CSS costs. Certain costs are considered to be overhead not attributable to any segment and remain unallocated in CSS. Included among the unallocated overhead remaining within CSS are the costs for investor relations, public affairs and certain executive compensation. CSS costs attributable to the business segments are predominantly allocated to FMS and SCS as follows: | |||||||||||||||||
•Finance, corporate services, and health and safety — allocated based upon estimated and planned resource utilization; | |||||||||||||||||
•Human resources — individual costs within this category are allocated in several ways, including allocation based on estimated utilization and number of personnel supported; | |||||||||||||||||
•Information technology — principally allocated based upon utilization-related metrics such as number of users or minutes of CPU time. Customer-related project costs and expenses are allocated to the business segment responsible for the project; and | |||||||||||||||||
•Other — represents legal and other centralized costs and expenses including certain share-based incentive compensation costs. Expenses, where allocated, are based primarily on the number of personnel supported. | |||||||||||||||||
Our FMS segment leases revenue earning equipment and provides fuel, maintenance and other ancillary services to the SCS segment. Inter-segment revenue and EBT are accounted for at rates similar to those executed with third parties. EBT related to inter-segment equipment and services billed to customers (equipment contribution) are included in both FMS and SCS and then eliminated (presented as “Eliminations”). | |||||||||||||||||
Segment results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. Each business segment follows the same accounting policies as described in Note 1, “Summary of Significant Accounting Policies.” Business segment revenue and EBT from continuing operations is as follows: | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Revenue: | |||||||||||||||||
Fleet Management Solutions: | |||||||||||||||||
Full service lease | $ | 2,102,703 | 2,016,570 | 1,956,812 | |||||||||||||
Commercial rental | 836,719 | 753,456 | 738,564 | ||||||||||||||
Full service lease and commercial rental | 2,939,422 | 2,770,026 | 2,695,376 | ||||||||||||||
Contract maintenance | 182,411 | 178,001 | 184,149 | ||||||||||||||
Contract-related maintenance | 196,841 | 186,580 | 170,323 | ||||||||||||||
Other | 71,064 | 72,029 | 71,955 | ||||||||||||||
Fuel services revenue | 787,887 | 829,586 | 854,578 | ||||||||||||||
Total Fleet Management Solutions from external customers | 4,177,625 | 4,036,222 | 3,976,381 | ||||||||||||||
Inter-segment revenue | 478,133 | 458,464 | 428,944 | ||||||||||||||
Fleet Management Solutions | 4,655,758 | 4,494,686 | 4,405,325 | ||||||||||||||
Supply Chain Solutions from external customers | 2,461,149 | 2,383,063 | 2,280,586 | ||||||||||||||
Eliminations | (478,133 | ) | (458,464 | ) | (428,944 | ) | |||||||||||
Total revenue | $ | 6,638,774 | 6,419,285 | 6,256,967 | |||||||||||||
EBT: | |||||||||||||||||
Fleet Management Solutions | $ | 434,018 | 344,049 | 307,628 | |||||||||||||
Supply Chain Solutions | 122,356 | 129,959 | 115,193 | ||||||||||||||
Eliminations | (41,361 | ) | (35,489 | ) | (29,265 | ) | |||||||||||
$ | 515,013 | 438,519 | 393,556 | ||||||||||||||
Unallocated Central Support Services | (51,740 | ) | (45,493 | ) | (42,348 | ) | |||||||||||
Non-operating pension costs | (9,768 | ) | (24,285 | ) | (31,423 | ) | |||||||||||
Restructuring and other (charges) recoveries, net and other items(1) | (114,956 | ) | 154 | (16,668 | ) | ||||||||||||
Earnings before income taxes from continuing operations | $ | 338,549 | 368,895 | 303,117 | |||||||||||||
______________ | |||||||||||||||||
-1 | See Note 25, “Other Items Impacting Comparability,” for a discussion of items excluded from our primary measure of segment performance. | ||||||||||||||||
The following table sets forth share-based compensation, depreciation expense, gains on vehicle sales, net, other non-cash charges, net, interest expense (income), capital expenditures and total assets for the years ended December 31, 2014, 2013 and 2012 as provided to the chief operating decision-maker for each of Ryder’s reportable business segments: | |||||||||||||||||
FMS | SCS | CSS | Eliminations | Total | |||||||||||||
(In thousands) | |||||||||||||||||
2014 | |||||||||||||||||
Share-based compensation expense | $ | 4,895 | 4,381 | 11,629 | — | 20,905 | |||||||||||
Depreciation expense (1) | $ | 1,011,227 | 28,847 | 185 | — | 1,040,259 | |||||||||||
Gains on vehicles sales, net | $ | (126,410 | ) | (414 | ) | — | — | (126,824 | ) | ||||||||
Pension lump sum settlement expense | $ | 76,239 | 6,612 | 14,380 | — | 97,231 | |||||||||||
Amortization expense and other non-cash charges, net | $ | 19,936 | 1,825 | 25,502 | — | 47,263 | |||||||||||
Interest expense (income) (2) | $ | 144,583 | (2,327 | ) | (181 | ) | — | 142,075 | |||||||||
Capital expenditures paid (3) | $ | 2,166,319 | 22,824 | 70,021 | — | 2,259,164 | |||||||||||
Total assets | $ | 8,818,816 | 898,196 | 198,734 | (239,760 | ) | 9,675,986 | ||||||||||
2013 | |||||||||||||||||
Share-based compensation expense | $ | 4,979 | 4,934 | 9,397 | — | 19,310 | |||||||||||
Depreciation expense (1) | $ | 926,724 | 29,560 | 857 | — | 957,141 | |||||||||||
Gains on vehicles sales, net | $ | (96,011 | ) | (164 | ) | — | — | (96,175 | ) | ||||||||
Amortization expense and other non-cash charges, net | $ | 19,071 | 3,640 | 33,678 | — | 56,389 | |||||||||||
Interest expense (income) (2) | $ | 139,288 | (1,864 | ) | (228 | ) | — | 137,196 | |||||||||
Capital expenditures paid (3) | $ | 2,092,544 | 22,677 | 25,243 | — | 2,140,464 | |||||||||||
Total assets | $ | 8,309,149 | 869,074 | 160,249 | (234,690 | ) | 9,103,782 | ||||||||||
2012 | |||||||||||||||||
Share-based compensation expense | $ | 5,359 | 4,433 | 9,072 | — | 18,864 | |||||||||||
Depreciation expense (1) | $ | 910,352 | 28,275 | 1,050 | — | 939,677 | |||||||||||
Gains on vehicle sales, net | $ | (89,075 | ) | (33 | ) | — | — | (89,108 | ) | ||||||||
Amortization expense and other non-cash charges, net | $ | 15,567 | 2,768 | 30,874 | — | 49,209 | |||||||||||
Interest expense (income) (2) | $ | 140,747 | 11 | (201 | ) | — | 140,557 | ||||||||||
Capital expenditures paid (3) | $ | 2,090,443 | 19,278 | 23,514 | — | 2,133,235 | |||||||||||
Total assets | $ | 7,556,509 | 807,935 | 144,355 | (189,820 | ) | 8,318,979 | ||||||||||
____________ | |||||||||||||||||
-1 | Depreciation expense associated with CSS assets was allocated to business segments based upon estimated and planned asset utilization. Depreciation expense totaling $21 million, $14 million, and $12 million during 2014, 2013, and 2012, respectively, associated with CSS assets was allocated to other business segments. | ||||||||||||||||
-2 | Interest expense was primarily allocated to the FMS segment since such borrowings were used principally to fund the purchase of revenue earning equipment used in FMS; however, interest expense (income) was also reflected in SCS based on targeted segment leverage ratios. | ||||||||||||||||
-3 | Excludes acquisition payments of $10 million, $2 million, and $5 million in 2014, 2013, and 2012, respectively, comprised primarily of long-lived assets. See Note 3, “Acquisitions,” for additional information. | ||||||||||||||||
Geographic Information | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Revenue: | |||||||||||||||||
United States | $ | 5,614,037 | 5,411,376 | 5,231,899 | |||||||||||||
Foreign: | |||||||||||||||||
Canada | 435,280 | 455,440 | 477,495 | ||||||||||||||
Europe | 400,853 | 372,209 | 384,105 | ||||||||||||||
Mexico | 158,481 | 161,279 | 143,282 | ||||||||||||||
Asia | 30,123 | 18,981 | 20,186 | ||||||||||||||
1,024,737 | 1,007,909 | 1,025,068 | |||||||||||||||
Total | $ | 6,638,774 | 6,419,285 | 6,256,967 | |||||||||||||
Long-lived assets: | |||||||||||||||||
United States | $ | 6,583,508 | 5,996,646 | 5,261,622 | |||||||||||||
Foreign: | |||||||||||||||||
Canada | 530,316 | 529,880 | 557,351 | ||||||||||||||
Europe | 553,467 | 568,850 | 534,728 | ||||||||||||||
Mexico | 26,230 | 29,008 | 24,973 | ||||||||||||||
Asia | 521 | 279 | 787 | ||||||||||||||
1,110,534 | 1,128,017 | 1,117,839 | |||||||||||||||
Total | $ | 7,694,042 | 7,124,663 | 6,379,461 | |||||||||||||
Certain Concentrations | |||||||||||||||||
We have a diversified portfolio of customers across a full array of transportation and logistics solutions and across many industries. We believe this will help to mitigate the impact of adverse downturns in specific sectors of the economy. Our portfolio of full service lease and commercial rental customers is not concentrated in any one particular industry or geographic region. We derive a significant portion of our SCS revenue from the automotive industry, mostly from manufacturers and suppliers of original equipment parts. During 2014, 2013 and 2012, the automotive industry accounted for approximately 27%, 29% and 30%, respectively, of SCS total revenue. |
Quarterly_Information_Unaudite
Quarterly Information (Unaudited) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||
QUARTERLY INFORMATION (UNAUDITED) | QUARTERLY INFORMATION (UNAUDITED) | |||||||||||||||||||||||
Earnings from | Earnings from | Net Earnings per | ||||||||||||||||||||||
Continuing Operations | Continuing | Common Share | ||||||||||||||||||||||
Operations per | ||||||||||||||||||||||||
Common Share | ||||||||||||||||||||||||
Revenue | Net Earnings | Basic | Diluted | Basic | Diluted | |||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
First quarter | $ | 1,610,737 | 49,098 | 48,232 | 0.93 | 0.92 | 0.91 | 0.9 | ||||||||||||||||
Second quarter | 1,684,571 | 75,694 | 75,358 | 1.43 | 1.42 | 1.43 | 1.41 | |||||||||||||||||
Third quarter | 1,687,150 | 83,967 | 83,689 | 1.6 | 1.58 | 1.59 | 1.57 | |||||||||||||||||
Fourth quarter | 1,656,316 | 11,700 | 11,296 | 0.22 | 0.22 | 0.21 | 0.21 | |||||||||||||||||
Full year | $ | 6,638,774 | 220,459 | 218,575 | 4.18 | 4.14 | 4.14 | 4.11 | ||||||||||||||||
2013 | ||||||||||||||||||||||||
First quarter | $ | 1,563,017 | 40,802 | 39,924 | 0.79 | 0.79 | 0.77 | 0.77 | ||||||||||||||||
Second quarter | 1,603,999 | 62,575 | 62,194 | 1.21 | 1.19 | 1.2 | 1.19 | |||||||||||||||||
Third quarter | 1,634,540 | 73,875 | 71,067 | 1.41 | 1.4 | 1.36 | 1.35 | |||||||||||||||||
Fourth quarter | 1,617,729 | 65,944 | 64,607 | 1.25 | 1.24 | 1.23 | 1.22 | |||||||||||||||||
Full year | $ | 6,419,285 | 243,196 | 237,792 | 4.67 | 4.63 | 4.57 | $ | 4.53 | |||||||||||||||
Quarterly and year-to-date computations of per share amounts are made independently; therefore, the sum of per-share amounts for the quarters may not equal per-share amounts for the year. | ||||||||||||||||||||||||
See Note 4, “Restructuring and Other Charges (Recoveries),” and Note 25, “Other Items Impacting Comparability,” for items included in earnings during 2014 and 2013. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||||
Additions | |||||||||||||||||
Description | Balance at | Charged to | Transferred | Deductions (2) | Balance | ||||||||||||
Beginning | Earnings | from (to) Other | at End | ||||||||||||||
of Period | Accounts (1) | of Period | |||||||||||||||
(In thousands) | |||||||||||||||||
2014 | |||||||||||||||||
Accounts receivable allowance | $ | 16,955 | 7,086 | — | 7,653 | 16,388 | |||||||||||
Direct finance lease allowance | $ | 501 | 47 | — | 260 | 288 | |||||||||||
Self-insurance accruals (3) | $ | 290,255 | 273,509 | 62,548 | 325,318 | 300,994 | |||||||||||
Reserve for residual value guarantees | $ | 239 | (11 | ) | — | — | 228 | ||||||||||
Valuation allowance on deferred tax assets | $ | 33,793 | (976 | ) | — | 8,075 | 24,742 | ||||||||||
2013 | |||||||||||||||||
Accounts receivable allowance | $ | 15,429 | 7,561 | — | 6,035 | 16,955 | |||||||||||
Direct finance lease allowance | $ | 703 | 205 | — | 407 | 501 | |||||||||||
Self-insurance accruals (3) | $ | 279,157 | 266,314 | 60,235 | 315,451 | 290,255 | |||||||||||
Reserve for residual value guarantees | $ | 1,635 | (413 | ) | — | 983 | 239 | ||||||||||
Valuation allowance on deferred tax assets | $ | 38,182 | 1,627 | — | 6,016 | 33,793 | |||||||||||
2012 | |||||||||||||||||
Accounts receivable allowance | $ | 14,489 | 10,478 | — | 9,538 | 15,429 | |||||||||||
Direct finance lease allowance | $ | 903 | 812 | — | 1,012 | 703 | |||||||||||
Self-insurance accruals (3) | $ | 253,424 | 272,357 | 57,285 | 303,909 | 279,157 | |||||||||||
Reserve for residual value guarantees | $ | 4,218 | 179 | — | 2,762 | 1,635 | |||||||||||
Valuation allowance on deferred tax assets | $ | 41,324 | 1,061 | — | 4,203 | 38,182 | |||||||||||
______________ | |||||||||||||||||
-1 | Transferred from (to) other accounts includes employee contributions made to the medical and dental self-insurance plans. | ||||||||||||||||
-2 | Deductions represent write-offs, lease termination payments, insurance claim payments during the period and net foreign currency translation adjustments. | ||||||||||||||||
-3 | Self-insurance accruals include vehicle liability, workers’ compensation, property damage, cargo and medical and dental, which comprise our self-insurance programs. Amounts charged to earnings include developments in prior year selected loss development factors which benefited earnings by $14 million, $5 million, and $1 million in 2014, 2013, and 2012, respectively. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation | |
The consolidated financial statements include the accounts of Ryder System, Inc. (Ryder) and all entities in which Ryder has a controlling voting interest (“subsidiaries”) and variable interest entities (“VIEs”) where Ryder is determined to be the primary beneficiary. Ryder is deemed to be the primary beneficiary if we have the power to direct the activities that most significantly impact the entity’s economic performance and we share in the significant risks and rewards of the entity. All significant intercompany accounts and transactions between consolidated companies have been eliminated in consolidation. | ||
Reclassifications | Reclassifications | |
In 2014, we reclassified our vehicle transportation costs within "Cost of services", "Selling, general and administrative expenses" and "Other operating expenses" to "Cost of lease and rental" within the Consolidated Statement of Earnings. Prior year amounts have been reclassified to conform to the current period presentation. These reclassifications were immaterial to the financial statements taken as a whole. | ||
Use of Estimates | Use of Estimates | |
The preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are based on management’s best knowledge of historical trends, actions that we may take in the future, and other information available when the consolidated financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available. Areas where the nature of the estimate make it reasonably possible that actual results could materially differ from the amounts estimated include: depreciation and residual value guarantees, employee benefit plan obligations, self-insurance accruals, impairment assessments on long-lived assets (including goodwill and indefinite-lived intangible assets), revenue recognition, allowance for accounts receivable, income tax liabilities and contingent liabilities. | ||
Cash Equivalents | Cash Equivalents | |
Cash equivalents represent cash in excess of current operating requirements invested in short-term, interest-bearing instruments with maturities of three months or less at the date of purchase and are stated at cost. | ||
Restricted Cash | Restricted Cash | |
Restricted cash primarily consists of cash proceeds from the sale of eligible vehicles set aside for the acquisition of replacement vehicles under our like-kind exchange tax program. See Note 13, “Income Taxes,” for a complete discussion of the vehicle like-kind exchange tax program. We classify restricted cash within “Prepaid expenses and other current assets” if the restriction is expected to expire in the twelve months following the balance sheet date or within “Direct financing leases and other assets” if the restriction is expected to expire more than twelve months after the balance sheet date. The changes in restricted cash balances are reflected as an investing activity in our Consolidated Statements of Cash Flows as they relate to the sales and purchases of revenue earning equipment. | ||
Revenue Recognition | Revenue Recognition | |
We recognize revenue when persuasive evidence of an arrangement exists, the services have been rendered to customers or delivery has occurred, the pricing is fixed or determinable, and collectibility is reasonably assured. In our evaluation of whether revenue is fixed or determinable, we determine whether the total contract consideration in the arrangement could change based on one or more factors. These factors, which vary among each of our segments, are further discussed below. Generally, the judgments made for these purposes do not materially impact the revenue recognized in any period. Sales tax collected from customers and remitted to the applicable taxing authorities is accounted for on a net basis, with no impact on revenue. | ||
Our judgments on collectibility are initially established when a business relationship with a customer is initiated and is continuously monitored as services are provided. We have a credit rating system based on internally developed standards and ratings provided by third parties. Our credit rating system, along with monitoring for delinquent payments, allows us to make decisions as to whether collectibility may not be reasonably assured. Factors considered during this process include historical payment trends, industry risks, liquidity of the customer, years in business, and judgments, liens or bankruptcies. When collectibility is not considered reasonably assured (typically when a customer is 120 days past due), revenue is not recognized until cash is collected from the customer. | ||
We generate revenue primarily through the lease, rental and maintenance of revenue earning equipment and by providing logistics management and dedicated services. We classify our revenues in one of the following categories: | ||
Lease and rental | ||
Lease and rental includes full service lease and commercial rental revenues from our FMS business segment. Full service lease is marketed, priced and managed as a bundled lease arrangement, which includes equipment, service and financing components. We do not offer a stand-alone unbundled finance lease of vehicles. For these reasons, both the lease and service components of our full service leases are included within lease and rental revenues. | ||
Our full service lease arrangements include lease deliverables such as the lease of a vehicle and the executory agreement for the maintenance, insurance, taxes and other services related to the leased vehicles during the lease term. Arrangement consideration is allocated between lease deliverables and non-lease deliverables based on management’s best estimate of the relative fair value of each deliverable. The arrangement consideration allocated to lease deliverables is accounted for pursuant to accounting guidance on leases. Our full service lease arrangements provide for a fixed charge billing and a variable charge billing based on mileage or time usage. Fixed charges are typically billed at the beginning of the month for the services to be provided that month. Variable charges are typically billed a month in arrears. Costs associated with the activities performed under our full service leasing arrangements are primarily comprised of labor, parts, outside work, depreciation, licenses, insurance, operating taxes and vehicle financing. These costs are expensed as incurred except for depreciation. Refer to “Summary of Significant Accounting Policies – Revenue Earning Equipment, Operating Property and Equipment, and Depreciation” for information regarding our depreciation policies. Non-chargeable maintenance costs have been allocated and reflected within “Cost of lease and rental” based on the maintenance-related labor costs relative to all product lines. | ||
Revenue from lease and rental agreements is recognized based on the classification of the arrangement, typically as either an operating or direct finance lease (DFL). | ||
• | The majority of our leases and all of our rental arrangements are classified as operating leases and therefore, we recognize lease and commercial rental revenue on a straight-line basis as it becomes receivable over the term of the lease or rental arrangement. Lease and rental agreements do not usually provide for scheduled rent increases or escalations. However, most lease agreements allow for rate changes based upon changes in the Consumer Price Index (CPI). Lease and rental agreements also provide for vehicle usage charges based on a time charge and/or a fixed per-mile charge. The fixed time charge, the fixed per-mile charge and the changes in rates attributed to changes in the CPI are considered contingent rentals and are not considered fixed or determinable until the effect of CPI changes is implemented or the equipment usage occurs. | |
• | The non-lease deliverables of our full service lease arrangements are comprised of access to substitute vehicles, emergency road service, and safety services. These services are available to our customers throughout the lease term. Accordingly, revenue is recognized on a straight-line basis over the lease term. | |
• | Leases not classified as operating leases are generally considered direct financing leases. We recognize revenue for direct financing leases using the effective interest method, which provides a constant periodic rate of return on the outstanding investment on the lease. Recognition of income on direct finance leases is suspended when management determines that collection of future income is not probable, which is at the point at which the customer’s delinquent balance is determined to be at risk (generally over 120 days past due). Accrual is resumed, and previously suspended income is recognized, when the receivable becomes contractually current and/or collection doubts are removed. Cash receipts on impaired direct finance lease receivables are first recorded against the direct finance lease receivable and then to any unrecognized income. A direct finance lease receivable is considered impaired, based on current information and events, if it is probable that we will be unable to collect all amounts due according to the contractual terms of the lease. | |
Services | ||
Services include contract maintenance, contract-related maintenance and other revenues from our FMS business segment and all SCS revenues. | ||
Under our contract maintenance arrangements, we provide maintenance and repairs required to keep a vehicle in good operating condition, schedule preventive maintenance inspections and provide access to emergency road service and substitute vehicles. The vast majority of our services are routine services performed on a recurring basis throughout the term of the arrangement. From time to time, we provide non-routine major repair services in order to place a vehicle back in service. Revenue from maintenance service contracts is recognized on a straight-line basis as maintenance services are rendered over the terms of the related arrangements. | ||
Contract maintenance arrangements are generally cancelable, without penalty, after one year with 60 days prior written notice. Our maintenance service arrangement provides for a monthly fixed charge and a monthly variable charge based on mileage or time usage. Fixed charges are typically billed at the beginning of the month for the services to be provided that month. Variable charges are typically billed a month in arrears. Most contract maintenance agreements allow for rate changes based upon changes in the CPI. The fixed per-mile charge and the changes in rates attributed to changes in the CPI are recognized as earned. Costs associated with the activities performed under our contract maintenance arrangements are primarily comprised of labor, parts and outside work. These costs are expensed as incurred. Non-chargeable maintenance costs have been allocated and reflected within “Cost of services” based on the proportionate maintenance-related labor costs relative to all product lines. | ||
Revenue from SCS service contracts is recognized as services are rendered in accordance with contract terms, which typically include discrete billing rates for the services. In certain SCS contracts, a portion of the contract consideration may be contingent upon the satisfaction of performance criteria, attainment of pain/gain share thresholds or volume thresholds. The contingent portion of the revenue in these arrangements is not considered fixed or determinable until the performance criteria or thresholds have been met. In transportation management arrangements where we act as principal, revenue is reported on a gross basis, without deducting third-party purchased transportation costs. To the extent that we are acting as an agent in the arrangement, revenue is reported on a net basis, after deducting purchased transportation costs. | ||
Fuel | ||
Fuel services include fuel services revenue from our FMS business segment. Revenue from fuel services is recognized when fuel is delivered to customers. Fuel is largely a pass-through to our customers for which we realize minimal changes in profitability during periods of steady market fuel prices. However, profitability may be positively or negatively impacted by sudden increases or decreases in market fuel prices during a short period of time as customer pricing for fuel services is established based on market fuel costs. | ||
Accounts Receivable Allowance | Accounts Receivable Allowance | |
We maintain an allowance for uncollectible customer receivables and an allowance for billing adjustments related to certain discounts and billing corrections. Estimates are updated regularly based on historical experience of bad debts and billing adjustments processed, current collection trends and aging analysis. Accounts are charged against the allowance when determined to be uncollectible. The allowance is maintained at a level deemed appropriate based on loss experience and other factors affecting collectibility. Historical results may not necessarily be indicative of future results. | ||
Inventories | Inventories | |
Inventories, which consist primarily of fuel, tires and vehicle parts, are valued using the lower of weighted-average cost or market. | ||
Revenue Earning Equipment, Operating Property and Equipment, and Depreciation | Revenue Earning Equipment, Operating Property and Equipment, and Depreciation | |
Revenue earning equipment, comprised of vehicles and operating property and equipment are initially recorded at cost inclusive of vendor rebates. Revenue earning equipment and operating property and equipment under capital lease are initially recorded at the lower of the present value of minimum lease payments or fair value. Vehicle repairs and maintenance that extend the life or increase the value of a vehicle are capitalized, whereas ordinary maintenance and repairs (including tire replacement or repair) are expensed as incurred. Direct costs incurred in connection with developing or obtaining internal-use software are capitalized. Costs incurred during the preliminary software development project stage, as well as maintenance and training costs, are expensed as incurred. | ||
Leasehold improvements are depreciated over the shorter of their estimated useful lives or the term of the related lease, which may include one or more option renewal periods where failure to exercise such options would result in an economic penalty in such amount that renewal appears, at the inception of the lease, to be reasonably assured. If a substantial additional investment is made in a leased property during the term of the lease, we re-evaluate the lease term to determine whether the investment, together with any penalties related to non-renewal, would constitute an economic penalty in such amount that renewal appears to be reasonably assured. | ||
Provision for depreciation is computed using the straight-line method on all depreciable assets. Depreciation expense has been recorded throughout the Consolidated Statement of Earnings depending on the nature of the related asset. We periodically review and adjust, as appropriate, the residual values and useful lives of revenue earning equipment. Our review of the residual values and useful lives of revenue earning equipment, is established with a long-term view considering historical market price changes, current and expected future market price trends, expected lives of vehicles and extent of alternative uses. Factors that could cause actual results to materially differ from estimates include but are not limited to unforeseen changes in technology innovations. | ||
We routinely dispose of used revenue earning equipment as part of our FMS business. Revenue earning equipment held for sale is stated at the lower of carrying amount or fair value less costs to sell. For revenue earning equipment held for sale, we stratify our fleet by vehicle type (tractors, trucks, and trailers), weight class, age and other relevant characteristics and create classes of similar assets for analysis purposes. Fair value is determined based upon recent market prices obtained from our own sales experience for sales of each class of similar assets and vehicle condition. Reductions in the carrying values of vehicles held for sale are recorded within “Other operating expenses” in the Consolidated Statements of Earnings. While we believe our estimates of residual values and fair values of revenue earning equipment are reasonable, changes to our estimates of values may occur due to changes in the market for used vehicles, the condition of the vehicles, and inherent limitations in the estimation process. | ||
Gains and losses on sales of operating property and equipment are reflected in “Miscellaneous income, net.” | ||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |
Goodwill on acquisitions represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Factors that contribute to the recognition of goodwill in our acquisitions include (i) expected growth rates and profitability of the acquired companies, (ii) securing buyer-specific synergies that increase revenue and profits and are not otherwise available to market participants, (iii) significant cost savings opportunities, (iv) experienced workforce and (v) our strategies for growth in sales, income and cash flows. | ||
Goodwill and other intangible assets with indefinite useful lives are not amortized, but rather, are tested for impairment at least annually (April 1st). In evaluating goodwill for impairment, we have the option to first assess qualitative factors to determine whether further impairment testing is necessary. Among other relevant events and circumstances that affect the fair value of reporting units, we consider individual factors such as macroeconomic conditions, changes in our industry and the markets in which we operate as well as our reporting units' historical and expected future financial performance. If we conclude that it is more likely than not that a reporting unit's fair value is less than its carrying value, recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of each of our reporting units with its carrying amount. If a reporting unit’s carrying amount exceeds its fair value, the second step is performed. The second step involves a comparison of the implied fair value and carrying value of that reporting unit’s goodwill. To the extent that a reporting unit’s carrying amount exceeds the implied fair value of its goodwill, an impairment loss is recognized. | ||
Our valuation of fair value for certain reporting units is determined based on an average of discounted future cash flow models that use ten years of projected cash flows and various terminal values based on multiples, book value or growth assumptions. For certain reporting units, fair value is determined based on the application of current trading multiples for comparable publicly-traded companies and the historical pricing multiples for comparable merger and acquisition transactions that have occurred in our industry. Rates used to discount cash flows are dependent upon interest rates and the cost of capital at a point in time. Our discount rates reflect a weighted average cost of capital based on our industry and capital structure adjusted for equity and size risk premiums based on market capitalization. Estimates of future cash flows are dependent on our knowledge and experience about past and current events and assumptions about conditions we expect to exist, including long-term growth rates, capital requirements and useful lives. Our estimates of cash flows are also based on historical and future operating performance, economic conditions and actions we expect to take. In addition to these factors, our SCS reporting units are dependent on several key customers or industry sectors. The loss of a key customer may have a significant impact to one of our SCS reporting units, causing us to assess whether or not the event resulted in a goodwill impairment loss. While we believe our estimates of future cash flows are reasonable, there can be no assurance that deterioration in economic conditions, customer relationships or adverse changes to expectations of future performance will not occur, resulting in a goodwill impairment loss. | ||
In making our assessments of fair value, we rely on our knowledge and experience about past and current events and assumptions about conditions we expect to exist in the future. These assumptions are based on a number of factors including future operating performance, economic conditions, actions we expect to take, and present value techniques. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of goodwill impairment. It is possible that assumptions underlying the impairment analysis will change in such a manner that impairment in value may occur in the future. | ||
Identifiable intangible assets not subject to amortization are assessed for impairment using a similar process to that used to evaluate goodwill as described above. Intangible assets with finite lives are amortized over their respective estimated useful lives. Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below. | ||
Impairment of Long-Lived Assets Other than Goodwill | Impairment of Long-Lived Assets Other than Goodwill | |
Long-lived assets held and used, including revenue earning equipment, operating property and equipment and intangible assets with finite lives, are tested for recoverability when circumstances indicate that the carrying amount of assets may not be recoverable. Recoverability of long-lived assets is evaluated by comparing the carrying amount of an asset or asset group to management’s best estimate of the undiscounted future operating cash flows (excluding interest charges) expected to be generated by the asset or asset group. If these comparisons indicate that the asset or asset group is not recoverable, an impairment loss is recognized for the amount by which the carrying value of the asset or asset group exceeds fair value. Fair value is determined by a quoted market price, if available, or an estimate of projected future operating cash flows, discounted using a rate that reflects the related operating segment’s average cost of funds. Long-lived assets to be disposed of including revenue earning equipment, operating property and equipment and indefinite-lived intangible assets, are reported at the lower of carrying amount or fair value less costs to sell. | ||
Contract Incentives | Contract Incentives | |
Payments made to or on behalf of a lessee or customer upon entering into a lease of our revenue earning equipment or contract are deferred and recognized on a straight-line basis as a reduction of revenue over the contract term. Amounts to be amortized in the next year have been classified as “Prepaid expenses and other current assets” with the remainder included in “Direct financing leases and other assets.” | ||
Self-Insurance Accruals | Self-Insurance Accruals | |
We retain a portion of the accident risk under vehicle liability, workers’ compensation and other insurance programs. Under our insurance programs, we retain the risk of loss in various amounts up to $3 million on a per occurrence basis. Self-insurance accruals are based primarily on an actuarially estimated, undiscounted cost of claims, which includes claims incurred but not reported. Such liabilities are based on estimates. Historical loss development factors are utilized to project the future development of incurred losses, and these amounts are adjusted based upon actual claim experience and settlements. While we believe that the amounts are adequate, there can be no assurance that changes to our actuarial estimates may not occur due to limitations inherent in the estimation process. Changes in the actuarial estimates of these accruals are charged or credited to earnings in the period determined. Amounts estimated to be paid within the next year have been classified as “Accrued expenses and other current liabilities” with the remainder included in “Other non-current liabilities” in our Consolidated Balance Sheets. | ||
We also maintain additional insurance at certain amounts in excess of our respective underlying retention. Amounts recoverable from insurance companies are not offset against the related accrual as our insurance policies do not extinguish or provide legal release from the obligation to make payments related to such risk-related losses. Amounts expected to be received within the next year from insurance companies have been included within “Receivables, net” with the remainder included in “Direct financing leases and other assets” and are recognized only when realization of the claim for recovery is considered probable. The accrual for the related claim has been classified within “Accrued expenses and other current liabilities” if it is estimated to be paid within the next year, otherwise it has been classified in “Other non-current liabilities” in our Consolidated Balance Sheets. | ||
Income Taxes | Income Taxes | |
Our provision for income taxes is based on reported earnings before income taxes. Deferred taxes are recognized for the future tax effects of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases using tax rates in effect for the years in which the differences are expected to reverse. | ||
The effects of changes in tax laws on deferred tax balances are recognized in the period the new legislation is enacted. Valuation allowances are recognized to reduce deferred tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, management considers estimates of future taxable income. We calculate our current and deferred tax position based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed in subsequent years. Adjustments based on filed returns are recorded when identified. | ||
We are subject to tax audits in numerous jurisdictions in the U.S. and around the world. Tax audits by their very nature are often complex and can require several years to complete. In the normal course of business, we are subject to challenges from the Internal Revenue Service (IRS) and other tax authorities regarding amounts of taxes due. These challenges may alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions. As part of our calculation of the provision for income taxes on earnings, we determine whether the benefits of our tax positions are at least more likely than not of being sustained upon audit based on the technical merits of the tax position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Such accruals require management to make estimates and judgments with respect to the ultimate outcome of a tax audit. Actual results could vary materially from these estimates. We adjust these reserves, including any impact on the related interest and penalties, in light of changing facts and circumstances, such as the progress of a tax audit. | ||
Interest and penalties related to income tax exposures are recognized as incurred and included in “Provision for income taxes” in our Consolidated Statements of Earnings. Accruals for income tax exposures, including penalties and interest, expected to be settled within the next year are included in “Accrued expenses and other current liabilities” with the remainder included in “Other non-current liabilities” in our Consolidated Balance Sheets. The federal benefit from state income tax exposures is included in “Deferred income taxes” in our Consolidated Balance Sheets. | ||
Severance and Contract Termination Costs | Severance and Contract Termination Costs | |
We recognize liabilities for severance and contract termination costs based upon the nature of the cost to be incurred. For involuntary separation plans that are completed within the guidelines of our written involuntary separation plan, we record the liability when it is probable and reasonably estimable. For one-time termination benefits, such as additional severance pay or benefit payouts, and other exit costs, such as contract termination costs, the liability is measured and recognized initially at fair value in the period in which the liability is incurred, with subsequent changes to the liability recognized as adjustments in the period of change. Severance related to position eliminations that are part of a restructuring plan are recorded within “Restructuring and other charges (recoveries), net” in the Consolidated Statements of Earnings. To the extent that severance costs are not part of a restructuring plan, the termination costs are recorded as a direct cost of revenue or within “Selling, general and administrative expenses,” in the Consolidated Statements of Earnings depending upon the nature of the eliminated position. | ||
Environmental Expenditures | Environmental Expenditures | |
We record liabilities for environmental assessments and/or cleanup when it is probable a loss has been incurred and the costs can be reasonably estimated. Environmental liability estimates may include costs such as anticipated site testing, consulting, remediation, disposal, post-remediation monitoring and legal fees, as appropriate. The liability does not reflect possible recoveries from insurance companies or reimbursement of remediation costs by state agencies, but does include estimates of cost sharing with other potentially responsible parties. Estimates are not discounted, as the timing of the anticipated cash payments is not fixed or readily determinable. Subsequent adjustments to initial estimates are recorded as necessary based upon additional information developed in subsequent periods. In future periods, new laws or regulations, advances in remediation technology and additional information about the ultimate remediation methodology to be used could significantly change our estimates. Claims for reimbursement of remediation costs are recorded when recovery is deemed probable. | ||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities | |
We use financial instruments, including forward exchange contracts, futures, swaps and cap agreements to manage our exposures to movements in interest rates and foreign currency exchange rates. The use of these financial instruments modifies the exposure of these risks with the intent to reduce the risk or cost to us. We do not enter into derivative financial instruments for trading purposes. We limit our risk that counterparties to the derivative contracts will default and not make payments by entering into derivative contracts only with counterparties comprised of large banks and financial institutions that meet established credit criteria. We do not expect to incur any losses as a result of counterparty default. | ||
On the date a derivative contract is entered into, we formally document, among other items, the intended hedging designation and relationship, along with the risk management objectives and strategies for entering into the derivative contract. We also formally assess, both at inception and on an ongoing basis, whether the derivatives we used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Cash flows from derivatives that are accounted for as hedges are classified in the Consolidated Statements of Cash Flows in the same category as the items being hedged. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, we discontinue hedge accounting prospectively. | ||
The hedging designation may be classified as one of the following: | ||
No Hedging Designation. The gain or loss on a derivative instrument not designated as an accounting hedging instrument is recognized in earnings. | ||
Fair Value Hedge. A hedge of a recognized asset or liability or an unrecognized firm commitment is considered a fair value hedge. For fair value hedges, both the effective and ineffective portions of the changes in the fair value of the derivative, along with the gain or loss on the hedged item that is attributable to the hedged risk, are both recorded in earnings. | ||
Cash Flow Hedge. A hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability is considered a cash flow hedge. The effective portion of the change in the fair value of a derivative that is declared as a cash flow hedge is recorded in “Accumulated other comprehensive loss” until earnings are affected by the variability in cash flows of the designated hedged item. | ||
Net Investment Hedge. A hedge of a net investment in a foreign operation is considered a net investment hedge. The effective portion of the change in the fair value of the derivative used as a net investment hedge of a foreign operation is recorded in the currency translation adjustment account within “Accumulated other comprehensive loss.” The ineffective portion, if any, on the hedged item that is attributable to the hedged risk is recorded in earnings and reported in “Miscellaneous income, net” in the Consolidated Statements of Earnings. | ||
Foreign Currency Translation | Foreign Currency Translation | |
Our foreign operations generally use the local currency as their functional currency. Assets and liabilities of these operations are translated at the exchange rates in effect on the balance sheet date. If exchangeability between the functional currency and the U.S. dollar is temporarily lacking at the balance sheet date, the first subsequent rate at which exchanges can be made is used to translate assets and liabilities. Items in the Consolidated Statements of Earnings are translated at the average exchange rates for the year. The impact of currency fluctuations is recorded in “Changes in cumulative translation adjustment and other” in the Consolidated Statements of Comprehensive Income (Loss). Upon sale or upon complete or substantially complete liquidation of an investment in a foreign operation, the currency translation adjustment attributable to that operation is removed from accumulated other comprehensive loss and is reported as part of the gain or loss on sale or liquidation of the investment for the period during which the sale or liquidation occurs. Gains and losses resulting from foreign currency transactions are recorded in “Miscellaneous income, net” in the Consolidated Statements of Earnings. | ||
Share-Based Compensation | Share-Based Compensation | |
The fair value of stock option awards and nonvested stock awards other than restricted stock units (RSUs), is expensed on a straight-line basis over the vesting period of the awards. RSUs are expensed in the year they are granted. Cash flows from the tax benefits resulting from tax deductions in excess of the compensation expense recognized for those options (windfall tax benefits) are classified as financing cash flows on an award-by-award basis. Tax benefits resulting from tax deductions in excess of share-based compensation expense recognized are credited to additional paid-in capital in the Consolidated Balance Sheets. Realized tax shortfalls are first offset against the cumulative balance of windfall tax benefits, if any, and then charged directly to income tax expense. Tax shortfalls are classified as operating cash flows on an award-by-award basis, with no netting of amounts credited to equity from windfall tax benefits. | ||
Earnings Per Share | Earnings Per Share | |
Earnings per share is computed using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Our nonvested stock (time-vested restricted stock rights and market-based restricted stock rights) issued prior to 2012 and restricted stock units are considered participating securities since the share-based awards contain a non-forfeitable right to dividend equivalents irrespective of whether the awards ultimately vest. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average shares outstanding during the period. | ||
Diluted earnings per common share reflect the dilutive effect of potential common shares from stock options and other nonparticipating nonvested stock. The dilutive effect of stock options is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options would be used to purchase common shares at the average market price for the period. The assumed proceeds include the purchase price the grantee pays, the windfall tax benefit that we receive upon assumed exercise and the unrecognized compensation expense at the end of each period. | ||
Share Repurchases | Share Repurchases | |
Repurchases of shares of common stock are made periodically in open-market transactions and are subject to market conditions, legal requirements and other factors. The cost of share repurchases is allocated between common stock and retained earnings based on the amount of additional paid-in capital at the time of the share repurchase. | ||
Defined Benefit Pension and Postretirement Benefit Plans | Defined Benefit Pension and Postretirement Benefit Plans | |
The funded status of our defined benefit pension plans and postretirement benefit plans are recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at December 31, the measurement date. The fair value of plan assets represents the current market value of contributions made to irrevocable trust funds, held for the sole benefit of participants, which are invested by the trust funds. For defined benefit pension plans, the benefit obligation represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. For postretirement benefit plans, the benefit obligation represents the actuarial present value of postretirement benefits attributed to employee services already rendered. Overfunded plans, with the fair value of plan assets exceeding the benefit obligation, are aggregated and recorded as a prepaid pension asset equal to this excess. Underfunded plans, with the benefit obligation exceeding the fair value of plan assets, are aggregated and recorded as a pension and postretirement benefit liability equal to this excess. | ||
The current portion of pension and postretirement benefit liabilities represent the actuarial present value of benefits payable within the next year exceeding the fair value of plan assets (if funded), measured on a plan-by-plan basis. These liabilities are recorded in “Accrued expenses and other current liabilities” in the Consolidated Balance Sheets. | ||
Pension and postretirement benefit expense includes service cost, interest cost, expected return on plan assets (if funded), and amortization of prior service credit and net actuarial loss. Service cost represents the actuarial present value of participant benefits earned in the current year. Interest cost represents the time value of money cost associated with the passage of time. The expected return on plan assets represents the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the obligation. Prior service credit represents the impact of negative plan amendments. Net actuarial losses arise as a result of differences between actual experience and assumptions or as a result of changes in actuarial assumptions. Net actuarial loss and prior service credit not recognized as a component of pension and postretirement benefit expense as they arise are recognized as "Change in net actuarial loss and prior service credit, net of tax" in the Consolidated Statements of Comprehensive Income (Loss). These pension and postretirement items are subsequently amortized as a component of pension and postretirement benefit expense over the remaining service period, if the majority of the employees are active, otherwise over the remaining life expectancy, provided such amounts exceed thresholds which are based upon the benefit obligation or the value of plan assets. | ||
The measurement of benefit obligations and pension and postretirement benefit expense is based on estimates and assumptions approved by management. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain assumptions, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest rates and mortality rates. | ||
Fair Value Measurements | Fair Value Measurements | |
We carry various assets and liabilities at fair value in the Consolidated Balance Sheets. The most significant assets and liabilities are vehicles held for sale, which are stated at the lower of carrying amount or fair value less costs to sell, investments held in Rabbi Trusts and derivatives. | ||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are classified based on the following fair value hierarchy: | ||
Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |
Level 2 | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3 | Unobservable inputs for the asset or liability. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. | |
When available, we use unadjusted quoted market prices to measure fair value and classify such measurements within Level 1. If quoted prices are not available, fair value is based upon model-driven valuations that use current market-based or independently sourced market parameters such as interest rates and currency rates. Items valued using these models are classified according to the lowest level input or value driver that is significant to the valuation. | ||
Revenue earning equipment held for sale is measured at fair value on a nonrecurring basis and is stated at the lower of carrying amount or fair value less costs to sell. Investments held in Rabbi Trusts and derivatives are carried at fair value on a recurring basis. Investments held in Rabbi Trusts include exchange-traded equity securities and mutual funds. Fair values for these investments are based on quoted prices in active markets. For derivatives, fair value is based on model-driven valuations using the LIBOR rate or observable forward foreign exchange rates, which are observable at commonly quoted intervals for the full term of the financial instrument. |
Restructuring_and_Other_Charge1
Restructuring and Other Charges (Recoveries) (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||
Components of restructuring and other (recoveries) charges, net | The components of restructuring and other charges (recoveries), net were as follows: | ||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Restructuring and other charges (recoveries), net: | |||||||||||
Severance and employee-related costs (recoveries) | $ | 2,387 | (470 | ) | 7,205 | ||||||
Contract termination costs | — | — | 865 | ||||||||
2,387 | (470 | ) | 8,070 | ||||||||
Restructuring and other (recoveries) charges, net that related to each segment | However, the applicable portion of the restructuring and other charges (recoveries), net that related to each segment in 2014, 2013 and 2012 were as follows: | ||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Fleet Management Solutions | $ | 515 | (470 | ) | 6,448 | ||||||
Supply Chain Solutions | 951 | — | 1,346 | ||||||||
Central Support Services | 921 | — | 276 | ||||||||
Total | $ | 2,387 | (470 | ) | 8,070 | ||||||
Receivables_Tables
Receivables (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of receivables | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Trade | $ | 693,114 | 680,345 | |||||
Direct financing leases | 85,946 | 79,787 | ||||||
Other, primarily warranty and insurance | 32,192 | 34,193 | ||||||
811,252 | 794,325 | |||||||
Allowance | (16,388 | ) | (16,955 | ) | ||||
Total | $ | 794,864 | 777,370 | |||||
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Prepaid expenses and other current assets | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Current deferred tax asset | $ | 32,553 | 37,431 | |||||
Restricted cash | 13,499 | 10,655 | ||||||
Prepaid vehicle licenses | 47,561 | 49,121 | ||||||
Prepaid operating taxes | 15,208 | 14,321 | ||||||
Prepaid sales commission | 12,255 | 10,033 | ||||||
Other | 44,158 | 37,702 | ||||||
Total | $ | 165,234 | 159,263 | |||||
Revenue_Earning_Equipment_Tabl
Revenue Earning Equipment (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Revenue Earning Equipment [Abstract] | ||||||||||||||||||||||
Summary of revenue earning equipment | ||||||||||||||||||||||
Estimated | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Useful | ||||||||||||||||||||||
Lives | Cost | Accumulated | Net Book | Cost | Accumulated | Net Book | ||||||||||||||||
Depreciation | Value (1) | Depreciation | Value (1) | |||||||||||||||||||
(In years) | (In thousands) | |||||||||||||||||||||
Held for use: | ||||||||||||||||||||||
Full service lease | 3 — 12 | $ | 7,918,497 | (2,591,688 | ) | 5,326,809 | 7,436,093 | (2,537,077 | ) | 4,899,016 | ||||||||||||
Commercial rental | 4.5 — 12 | 2,411,957 | (830,683 | ) | 1,581,274 | 2,210,863 | (747,283 | ) | 1,463,580 | |||||||||||||
Held for sale | 312,698 | (226,333 | ) | 86,365 | 439,983 | (311,742 | ) | 128,241 | ||||||||||||||
Total | $ | 10,643,152 | (3,648,704 | ) | 6,994,448 | 10,086,939 | (3,596,102 | ) | 6,490,837 | |||||||||||||
_______________ | ||||||||||||||||||||||
-1 | Revenue earning equipment, net includes vehicles under capital leases of $48 million, less accumulated depreciation of $22 million, at December 31, 2014 and $54 million, less accumulated depreciation of $22 million, at December 31, 2013. |
Recovered_Sheet1
Operating Property And Equipment (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Schedule of operating property and equipment | ||||||||||
Estimated | December 31, | |||||||||
Useful Lives | 2014 | 2013 | ||||||||
(In years) | (In thousands) | |||||||||
Land | — | $ | 201,089 | 193,031 | ||||||
Buildings and improvements | 10 — 40 | 766,360 | 715,965 | |||||||
Machinery and equipment | 3 — 10 | 663,616 | 595,244 | |||||||
Other | 3 — 10 | 103,557 | 120,703 | |||||||
1,734,622 | 1,624,943 | |||||||||
Accumulated depreciation | (1,035,028 | ) | (991,117 | ) | ||||||
Total | $ | 699,594 | 633,826 | |||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
Carrying amount of goodwill attributable to each reportable business segment | The carrying amount of goodwill attributable to each reportable business segment with changes therein was as follows: | ||||||||||
Fleet | Supply | Total | |||||||||
Management | Chain | ||||||||||
Solutions | Solutions | ||||||||||
(In thousands) | |||||||||||
Balance at January 1, 2013 | |||||||||||
Goodwill | $ | 223,129 | 190,308 | 413,437 | |||||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | |||||
212,807 | 171,409 | 384,216 | |||||||||
Purchase accounting adjustments | 377 | — | 377 | ||||||||
Foreign currency translation adjustment | (302 | ) | (572 | ) | (874 | ) | |||||
Balance at December 31, 2013 | |||||||||||
Goodwill | 223,204 | 189,736 | 412,940 | ||||||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | |||||
212,882 | 170,837 | 383,719 | |||||||||
Acquisitions | 11,839 | — | 11,839 | ||||||||
Foreign currency translation adjustment | (1,826 | ) | (703 | ) | (2,529 | ) | |||||
Balance at December 31, 2014 | |||||||||||
Goodwill | 233,217 | 189,033 | 422,250 | ||||||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | |||||
$ | 222,895 | 170,134 | 393,029 | ||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Schedule of intangible assets | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Indefinite lived intangible assets — Trade name | $ | 9,084 | 9,084 | |||||
Finite lived intangible assets: | ||||||||
Customer relationship intangibles | 97,922 | 95,683 | ||||||
Other intangibles, primarily trade name | 2,367 | 2,254 | ||||||
Accumulated amortization | (42,374 | ) | (35,478 | ) | ||||
57,915 | 62,459 | |||||||
Foreign currency translation adjustment | (380 | ) | 863 | |||||
Total | $ | 66,619 | 72,406 | |||||
Direct_Financing_Leases_and_Ot1
Direct Financing Leases and Other Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Direct Financing Leases And Other Assets [Abstract] | ||||||||
Direct financing leases and other assets | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Direct financing leases, net | $ | 331,065 | 320,327 | |||||
Investments held in Rabbi Trusts | 38,681 | 32,519 | ||||||
Contract incentives | 21,475 | 20,355 | ||||||
Insurance receivables | 13,957 | 14,933 | ||||||
Debt issuance costs | 16,503 | 16,570 | ||||||
Prepaid pension asset | 2,698 | 23,556 | ||||||
Interest rate swap agreements | 4,565 | 9,333 | ||||||
Other | 17,155 | 22,908 | ||||||
Total | $ | 446,099 | 460,501 | |||||
Accrued_Expenses_and_Other_Lia1
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Accrued Liabilities and Other Liabilities [Abstract] | ||||||||||||||||||||
Accrued Expenses and Other Liabilities | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Accrued | Non-Current | Total | Accrued | Non-Current | Total | |||||||||||||||
Expenses | Liabilities | Expenses | Liabilities | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Salaries and wages | $ | 114,446 | — | 114,446 | 106,281 | — | 106,281 | |||||||||||||
Deferred compensation | 3,209 | 37,093 | 40,302 | 2,505 | 31,896 | 34,401 | ||||||||||||||
Pension benefits | 3,739 | 444,657 | 448,396 | 3,660 | 292,155 | 295,815 | ||||||||||||||
Other postretirement benefits | 2,112 | 26,889 | 29,001 | 2,414 | 28,374 | 30,788 | ||||||||||||||
Other employee benefits | 7,172 | 19,276 | 26,448 | 3,809 | 6,712 | 10,521 | ||||||||||||||
Insurance obligations (1) | 132,246 | 189,431 | 321,677 | 125,835 | 186,700 | 312,535 | ||||||||||||||
Environmental liabilities | 3,877 | 8,002 | 11,879 | 4,515 | 8,548 | 13,063 | ||||||||||||||
Operating taxes | 92,330 | — | 92,330 | 94,188 | — | 94,188 | ||||||||||||||
Income taxes | 5,066 | 22,843 | 27,909 | 2,623 | 23,813 | 26,436 | ||||||||||||||
Interest | 32,441 | — | 32,441 | 33,654 | — | 33,654 | ||||||||||||||
Deposits, mainly from customers | 59,388 | 5,929 | 65,317 | 55,854 | 6,239 | 62,093 | ||||||||||||||
Deferred revenue | 11,759 | — | 11,759 | 15,123 | — | 15,123 | ||||||||||||||
Acquisition holdbacks | 3,817 | 2,187 | 6,004 | 2,012 | — | 2,012 | ||||||||||||||
Other | 48,930 | 30,369 | 79,299 | 43,864 | 31,868 | 75,732 | ||||||||||||||
Total | $ | 520,532 | 786,676 | 1,307,208 | 496,337 | 616,305 | 1,112,642 | |||||||||||||
_________________ | ||||||||||||||||||||
(1) Insurance obligations are primarily comprised of self-insured claim liabilities. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Components of earnings from continuing operations before income taxes | The components of earnings from continuing operations before income taxes and the provision for income taxes from continuing operations were as follows: | ||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Earnings from continuing operations before income taxes: | |||||||||||
United States | $ | 275,912 | 302,689 | 241,672 | |||||||
Foreign | 62,637 | 66,206 | 61,445 | ||||||||
Total | $ | 338,549 | 368,895 | 303,117 | |||||||
Current tax expense (benefit) from continuing operations: | |||||||||||
Federal (1) | $ | (230 | ) | 233 | (4,157 | ) | |||||
State (1) | 6,396 | 4,194 | 11,514 | ||||||||
Foreign | 7,163 | 7,691 | 7,759 | ||||||||
13,329 | 12,118 | 15,116 | |||||||||
Deferred tax expense from continuing operations: | |||||||||||
Federal | 90,104 | 98,036 | 77,819 | ||||||||
State | 12,429 | 15,399 | 3,871 | ||||||||
Foreign | 2,228 | 146 | 5,412 | ||||||||
104,761 | 113,581 | 87,102 | |||||||||
Provision for income taxes from continuing operations | $ | 118,090 | 125,699 | 102,218 | |||||||
______________ | |||||||||||
-1 | Excludes federal and state tax benefits resulting from the exercise of stock options and vesting of restricted stock awards, which were credited directly to “Additional paid-in capital.” | ||||||||||
Reconciliation of federal statutory tax rate with effective tax rate from continuing operations | A reconciliation of the federal statutory tax rate with the effective tax rate from continuing operations follows: | ||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Percentage of pre-tax earnings) | |||||||||||
Federal statutory tax rate | 35 | 35 | 35 | ||||||||
Impact on deferred taxes for changes in tax rates | (0.9 | ) | 0.1 | — | |||||||
State income taxes, net of federal income tax benefit | 5.2 | 4 | 4.1 | ||||||||
Foreign rates varying from federal | (3.7 | ) | (4.1 | ) | (2.8 | ) | |||||
Tax reviews and audits | (1.1 | ) | (0.8 | ) | (2.7 | ) | |||||
Miscellaneous items, net | 0.4 | (0.1 | ) | 0.1 | |||||||
Effective tax rate | 34.9 | 34.1 | 33.7 | ||||||||
Summary of the increases (decreases) to net earnings from continuing operations from changes in tax laws | The following provides a summary of the increases (decreases) to net earnings from continuing operations from changes in tax laws by tax jurisdiction: | ||||||||||
Tax Jurisdiction | Enactment Date | Net Earnings | |||||||||
(in thousands) | |||||||||||
2014 | |||||||||||
New York | 31-Mar-14 | $1,776 | |||||||||
Rhode Island | 19-Jun-14 | $626 | |||||||||
2013 | |||||||||||
Puerto Rico | 30-Jun-13 | ($503) | |||||||||
United Kingdom | 17-Jul-13 | $485 | |||||||||
2012 | |||||||||||
United Kingdom | July 17,2012 | ($856) | |||||||||
Canada | 20-Jun-12 | ($671) | |||||||||
Components of net deferred income tax liability | The components of the net deferred income tax liability were as follows: | ||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Deferred income tax assets: | |||||||||||
Self-insurance accruals | $ | 81,908 | 69,291 | ||||||||
Net operating loss carryforwards | 377,740 | 322,380 | |||||||||
Alternative minimum taxes | 10,727 | 10,727 | |||||||||
Accrued compensation and benefits | 68,626 | 60,039 | |||||||||
Federal benefit on state tax positions | 18,847 | 18,417 | |||||||||
Pension benefits | 157,082 | 87,745 | |||||||||
Miscellaneous other accruals | 33,090 | 39,414 | |||||||||
748,020 | 608,013 | ||||||||||
Valuation allowance | (24,742 | ) | (33,793 | ) | |||||||
723,278 | 574,220 | ||||||||||
Deferred income tax liabilities: | |||||||||||
Property and equipment bases difference | (2,149,699 | ) | (1,943,923 | ) | |||||||
Other items | (16,996 | ) | (22,503 | ) | |||||||
(2,166,695 | ) | (1,966,426 | ) | ||||||||
Net deferred income tax liability (1) | $ | (1,443,417 | ) | (1,392,206 | ) | ||||||
______________ | |||||||||||
-1 | Deferred tax assets of $33 million and $37 million have been included in “Prepaid expenses and other current assets” at December 31, 2014 and 2013, respectively. | ||||||||||
Summary of activity related to unrecognized tax benefits | The following table summarizes the activity related to unrecognized tax benefits (excluding the federal benefit received from state positions): | ||||||||||
December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Balance at January 1 | $ | 56,813 | 52,271 | 62,247 | |||||||
Additions based on tax positions related to the current year | 6,896 | 7,606 | 3,980 | ||||||||
Reductions due to lapse of applicable statutes of limitation | (3,227 | ) | (3,064 | ) | (13,956 | ) | |||||
Gross balance at December 31 | 60,482 | 56,813 | 52,271 | ||||||||
Interest and penalties | 5,125 | 5,756 | 5,319 | ||||||||
Balance at December 31 | $ | 65,607 | 62,569 | 57,590 | |||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Leases [Abstract] | |||||||||||
Net investment in direct financing and sales-type leases | The net investment in direct financing and sales-type leases consisted of: | ||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Total minimum lease payments receivable | $ | 659,551 | 633,445 | ||||||||
Less: Executory costs | (210,241 | ) | (198,755 | ) | |||||||
Minimum lease payments receivable | 449,310 | 434,690 | |||||||||
Less: Allowance for uncollectibles | (288 | ) | (501 | ) | |||||||
Net minimum lease payments receivable | 449,022 | 434,189 | |||||||||
Unguaranteed residuals | 55,992 | 57,424 | |||||||||
Less: Unearned income | (88,003 | ) | (91,499 | ) | |||||||
Net investment in direct financing and sales-type leases | 417,011 | 400,114 | |||||||||
Current portion | (85,946 | ) | (79,787 | ) | |||||||
Non-current portion | $ | 331,065 | 320,327 | ||||||||
Credit risk profile by creditworthiness category of direct financing lease receivables | The following table presents the credit risk profile by creditworthiness category of our direct financing lease receivables at December 31, 2014: | ||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Very low risk to low risk | $ | 198,496 | 203,556 | ||||||||
Moderate | 158,790 | 164,761 | |||||||||
Moderately high to high risk | 92,024 | 66,373 | |||||||||
$ | 449,310 | 434,690 | |||||||||
Future minimum payments for leases | Future minimum payments for leases in effect at December 31, 2014 were as follows: | ||||||||||
As Lessor (1) | As Lessee | ||||||||||
Operating | Direct | Operating | |||||||||
Leases | Financing | Leases | |||||||||
Leases | |||||||||||
(In thousands) | |||||||||||
2015 | $ | 974,684 | 108,433 | 103,624 | |||||||
2016 | 795,201 | 94,174 | 75,094 | ||||||||
2017 | 627,594 | 75,385 | 51,096 | ||||||||
2018 | 465,224 | 59,288 | 48,589 | ||||||||
2019 | 296,028 | 41,929 | 35,874 | ||||||||
Thereafter | 219,924 | 70,101 | 65,646 | ||||||||
Total | $ | 3,378,655 | 449,310 | 379,923 | |||||||
____________________ | |||||||||||
-1 | Amounts do not include contingent rentals, which may be received under certain leases on the basis of miles of used or changes in the Consumer Price Index. Contingent rentals from operating leases included in revenue during 2014, 2013 and 2012 were $318 million, $318 million, and $319 million, respectively. Contingent rentals from direct financing leases included in revenue during 2014, 2013, and 2012 were $11 million in all periods. |
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Debt | ||||||||||||||||
Weighted-Average | ||||||||||||||||
Interest Rate | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | Maturities | 2014 | 2013 | ||||||||||||
(In thousands) | ||||||||||||||||
Short-term debt and current portion of long-term debt: | ||||||||||||||||
Short-term debt | 1.3 | % | 1.7 | % | 2015 | $ | 3,773 | 1,315 | ||||||||
Current portion of long-term debt, including capital leases | 8,434 | 258,123 | ||||||||||||||
Total short-term debt and current portion of long-term debt | 12,207 | 259,438 | ||||||||||||||
Long-term debt: | ||||||||||||||||
U.S. commercial paper(1) | 0.35 | % | 0.28 | % | 2018 | 276,694 | 486,939 | |||||||||
Canadian commercial paper(1) | — | % | 1.13 | % | 2018 | — | 11,297 | |||||||||
Global revolving credit facility | 1.6 | % | — | % | 2018 | 11,190 | — | |||||||||
Unsecured U.S. notes – Medium-term notes(1) | 3.29 | % | 3.76 | % | 2015-2025 | 3,772,159 | 3,271,734 | |||||||||
Unsecured U.S. obligations, principally bank term loans | 0.76 | % | 1.45 | % | 2015-2018 | 110,500 | 55,500 | |||||||||
Unsecured foreign obligations | 2.01 | % | 1.99 | % | 2015-2016 | 295,776 | 315,558 | |||||||||
Capital lease obligations | 3.65 | % | 3.81 | % | 2015-2019 | 37,560 | 38,911 | |||||||||
Total before fair market value adjustment | 4,503,879 | 4,179,939 | ||||||||||||||
Fair market value adjustment on notes subject to hedging(2) | 4,830 | 8,171 | ||||||||||||||
4,508,709 | 4,188,110 | |||||||||||||||
Current portion of long-term debt, including capital leases | (8,434 | ) | (258,123 | ) | ||||||||||||
Long-term debt | 4,500,275 | 3,929,987 | ||||||||||||||
Total debt | $ | 4,512,482 | 4,189,425 | |||||||||||||
_________________ | ||||||||||||||||
-1 | We had unamortized original issue discounts of $8 million and $8 million at December 31, 2014 and 2013, respectively. | |||||||||||||||
-2 | The notional amount of the executed interest rate swaps designated as fair value hedges was $600 million and $400 million at December 31, 2014 and 2013, respectively. Refer to Note 17, "Derivatives", for additional information. | |||||||||||||||
Maturities of debt | Maturities of total debt are as follows: | |||||||||||||||
Capital Leases | Debt | |||||||||||||||
(In thousands) | ||||||||||||||||
2015 | $ | 9,374 | 4,272 | |||||||||||||
2016 | 8,362 | 860,339 | ||||||||||||||
2017 | 9,325 | 699,484 | ||||||||||||||
2018 | 6,906 | 1,741,992 | ||||||||||||||
2019 | 5,983 | 998,647 | ||||||||||||||
Thereafter | — | 165,357 | ||||||||||||||
Total | 39,950 | 4,470,091 | ||||||||||||||
Imputed interest | (2,390 | ) | ||||||||||||||
Present value of minimum capitalized lease payments | 37,560 | |||||||||||||||
Current portion | (8,434 | ) | ||||||||||||||
Long-term capitalized lease obligation | $ | 29,126 | ||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Assets and liabilities measured at fair value on recurring basis | The following tables present our assets and liabilities that are measured at fair value on a recurring basis and the levels of inputs used to measure fair value: | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
At December 31, 2014 Using | ||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Interest rate swaps | Prepaid expenses and other current assets | $ | — | 477 | — | 477 | ||||||||||
Interest rate swaps | DFL and other assets | — | 4,565 | — | 4,565 | |||||||||||
Investments held in Rabbi Trusts: | ||||||||||||||||
Cash and cash equivalents | 4,418 | — | — | 4,418 | ||||||||||||
U.S. equity mutual funds | 23,589 | — | — | 23,589 | ||||||||||||
Foreign equity mutual funds | 4,724 | — | — | 4,724 | ||||||||||||
Fixed income mutual funds | 5,950 | — | — | 5,950 | ||||||||||||
Investments held in Rabbi Trusts | DFL and other assets | 38,681 | — | — | 38,681 | |||||||||||
Total assets at fair value | $ | 38,681 | 5,042 | — | 43,723 | |||||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | Other non-current liabilities | — | 212 | — | 212 | |||||||||||
Total liabilities at fair value | $ | — | 212 | — | 212 | |||||||||||
Fair Value Measurements | ||||||||||||||||
At December 31, 2013 Using | ||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Interest rate swaps | DFL and other assets | $ | — | 9,333 | — | 9,333 | ||||||||||
Investments held in Rabbi Trusts: | ||||||||||||||||
Cash and cash equivalents | 7,101 | — | — | 7,101 | ||||||||||||
U.S. equity mutual funds | 16,479 | — | — | 16,479 | ||||||||||||
Foreign equity mutual funds | 4,323 | — | — | 4,323 | ||||||||||||
Fixed income mutual funds | 4,616 | — | — | 4,616 | ||||||||||||
Investments held in Rabbi Trusts | DFL and other assets | 32,519 | — | — | 32,519 | |||||||||||
Total assets at fair value | $ | 32,519 | 9,333 | — | 41,852 | |||||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | Other non-current liabilities | — | 1,162 | — | 1,162 | |||||||||||
Total liabilities at fair value | $ | — | 1,162 | — | 1,162 | |||||||||||
Assets and liabilities measured at fair value on nonrecurring basis | The following table presents our assets that are measured at fair value on a nonrecurring basis and considered a Level 3 fair value measurement: | |||||||||||||||
Total Losses (2) | ||||||||||||||||
December 31, | Year ended December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Assets held for sale: | ||||||||||||||||
Revenue earning equipment: (1) | ||||||||||||||||
Trucks | $ | 6,135 | 13,326 | $ | 6,274 | 9,926 | ||||||||||
Tractors | 4,054 | 10,339 | 3,450 | 4,824 | ||||||||||||
Trailers | 789 | 723 | 1,040 | 1,678 | ||||||||||||
Total assets at fair value | $ | 10,978 | 24,388 | $ | 10,764 | 16,428 | ||||||||||
______________ | ||||||||||||||||
-1 | Represents the portion of all revenue earning equipment held for sale that is recorded at fair value, less costs to sell. | |||||||||||||||
-2 | Total losses represent fair value adjustments for all vehicles held for sale throughout the period for which fair value less costs to sell was less than carrying value. |
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||
Schedule of Derivative Instruments | The following table provides a detail of the swaps outstanding and the related hedged items as of December 31, 2014: | ||||||||||||
Face value of | Aggregate notional | Weighted-average variable | |||||||||||
amount of interest | interest rate on hedged debt | ||||||||||||
as of December 31, | |||||||||||||
Issuance date | Maturity date | medium-term notes | rate swaps | Fixed interest rate | 2014 | 2013 | |||||||
(Dollars in thousands) | |||||||||||||
Feb-11 | Mar-15 | $350,000 | $150,000 | 3.15% | 1.28% | 1.34% | |||||||
May-11 | Jun-17 | $350,000 | $150,000 | 3.50% | 1.42% | 1.44% | |||||||
Nov-13 | Nov-18 | $300,000 | $100,000 | 2.45% | 1.19% | 1.19% | |||||||
Feb-14 | Jun-19 | $350,000 | $100,000 | 2.55% | 1.10% | —% | |||||||
May-14 | Sep-19 | $400,000 | $100,000 | 2.45% | 0.86% | —% | |||||||
Impact on the Consolidated Condensed Statements of Earnings related to Fair Value Hedges | The location and amount of (gains) losses on derivative instruments and related hedged items reported in the Consolidated Statements of Earnings were as follows: | ||||||||||||
Location of (Gain) | December 31, | ||||||||||||
Fair Value Hedging Relationship | Loss Recognized in Income | 2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||||
Derivative: Interest rate swap | Interest expense | $ | (3,341 | ) | (8,554 | ) | (5,118 | ) | |||||
Hedged item: Fixed-rate debt | Interest expense | 3,341 | 8,554 | 5,118 | |||||||||
Total | $ | — | — | — | |||||||||
Guarantees_Tables
Guarantees (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Guarantees [Abstract] | |||||||||||||||
Maximum determinable exposure of each type of guarantee and the corresponding liability | At December 31, 2014 and 2013, the maximum determinable exposure of each type of guarantee and the corresponding liability, if any, recorded on the Consolidated Balance Sheets were as follows: | ||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||
Guarantee | Maximum | Carrying | Maximum | Carrying | |||||||||||
Exposure of | Amount of | Exposure of | Amount of | ||||||||||||
Guarantee | Liability | Guarantee | Liability | ||||||||||||
(In thousands) | |||||||||||||||
Vehicle residual value guarantees (end of lease term) — operating leases (1) | $ | 50,615 | $ | — | 24,059 | — | |||||||||
Standby letters of credit | — | — | 6,234 | 6,234 | |||||||||||
Total | $ | 50,615 | $ | — | 30,293 | 6,234 | |||||||||
________________ | |||||||||||||||
-1 | Amounts exclude contingent rentals associated with residual value guarantees on certain vehicles held under operating leases for which the guarantees are conditioned upon disposal of the leased vehicles prior to the end of their lease term. At December 31, 2014 and 2013, our maximum exposure for such guarantees was approximately $225 million and $120 million, respectively, with $0.2 million recorded as a liability at December 31, 2014 and 2013. | ||||||||||||||
Letters of credit and surety bonds outstanding | At December 31, 2014 and 2013, we had letters of credit and surety bonds outstanding, which primarily guarantee various insurance activities as noted in the following table: | ||||||||||||||
December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||
Letters of credit | $ | 234,482 | 210,995 | ||||||||||||
Surety bonds | 99,831 | 99,486 | |||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Equity [Abstract] | ||||||||||||||
Summary of components of accumulated other comprehensive loss, net of tax | The following summary sets forth the components of accumulated other comprehensive loss, net of tax: | |||||||||||||
Currency | Net Actuarial | Prior Service | Accumulated | |||||||||||
Translation | Loss (1) | Credit (1) | Other | |||||||||||
Adjustments and Other | Comprehensive | |||||||||||||
Loss | ||||||||||||||
(In thousands) | ||||||||||||||
1-Jan-12 | $ | 28,219 | (599,675 | ) | 4,291 | (567,165 | ) | |||||||
Amortization | — | 20,315 | (1,657 | ) | 18,658 | |||||||||
Other current period change | 29,641 | (68,753 | ) | — | (39,112 | ) | ||||||||
31-Dec-12 | 57,860 | (648,113 | ) | 2,634 | (587,619 | ) | ||||||||
Amortization | — | 22,820 | (1,340 | ) | 21,480 | |||||||||
Other current period change | (21,985 | ) | 147,410 | 2,466 | 127,891 | |||||||||
31-Dec-13 | 35,875 | (477,883 | ) | 3,760 | (438,248 | ) | ||||||||
Amortization | — | 14,866 | (2,676 | ) | 12,190 | |||||||||
Pension lump sum settlement expense | — | 61,333 | — | 61,333 | ||||||||||
Other current period change | (71,962 | ) | (184,257 | ) | 674 | (255,545 | ) | |||||||
31-Dec-14 | $ | (36,087 | ) | (585,941 | ) | 1,758 | (620,270 | ) | ||||||
_______________________ | ||||||||||||||
-1 | These amounts are included in the computation of net periodic pension cost and pension settlement charge. See Note 23, "Employee Benefit Plans," for further information. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Schedule of basic and diluted earnings per common share from continuing operations | The following table presents the calculation of basic and diluted earnings per common share from continuing operations: | ||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands, except per share amounts) | |||||||||||
Earnings per share — Basic: | |||||||||||
Earnings from continuing operations | $ | 220,459 | 243,196 | 200,899 | |||||||
Less: Distributed and undistributed earnings allocated to nonvested stock | (858 | ) | (2,173 | ) | (2,566 | ) | |||||
Earnings from continuing operations available to common shareholders — Basic | $ | 219,601 | 241,023 | 198,333 | |||||||
Weighted average common shares outstanding— Basic | 52,536 | 51,617 | 50,449 | ||||||||
Earnings from continuing operations per common share — Basic | $ | 4.18 | 4.67 | 3.93 | |||||||
Earnings per share — Diluted: | |||||||||||
Earnings from continuing operations | $ | 220,459 | 243,196 | 200,899 | |||||||
Less: Distributed and undistributed earnings allocated to nonvested stock | (853 | ) | (2,159 | ) | (2,556 | ) | |||||
Earnings from continuing operations available to common shareholders — Diluted | $ | 219,606 | 241,037 | 198,343 | |||||||
Weighted average common shares outstanding— Basic | 52,536 | 51,617 | 50,449 | ||||||||
Effect of dilutive equity awards | 500 | 454 | 291 | ||||||||
Weighted average common shares outstanding— Diluted | 53,036 | 52,071 | 50,740 | ||||||||
Earnings from continuing operations per common share — Diluted | $ | 4.14 | 4.63 | 3.91 | |||||||
Anti-dilutive equity awards and market-based restrictive stock rights not included above | 161 | 785 | 2,278 | ||||||||
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||
Share-based compensation expense and income tax benefits recognized during the periods | The following table provides information on share-based compensation expense and income tax benefits recognized in 2014, 2013 and 2012: | ||||||||||||||||||
Years ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
(In thousands) | |||||||||||||||||||
Stock option and stock purchase plans | $ | 9,023 | 8,303 | 9,469 | |||||||||||||||
Nonvested stock | 11,882 | 11,007 | 9,395 | ||||||||||||||||
Share-based compensation expense | 20,905 | 19,310 | 18,864 | ||||||||||||||||
Income tax benefit | (7,300 | ) | (6,224 | ) | (6,309 | ) | |||||||||||||
Share-based compensation expense, net of tax | $ | 13,605 | 13,086 | 12,555 | |||||||||||||||
Summary of share-based compensation expense recognized related to cash awards | The following table is a summary of compensation expense recognized related to cash awards in addition to share-based compensation expense reported in the previous table. | ||||||||||||||||||
Years ended December 31 | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
(In thousands) | |||||||||||||||||||
Cash awards | $ | 1,900 | 996 | 1,099 | |||||||||||||||
Summary of stock option activity | The following is a summary of option activity under our stock option plans as of and for the year ended December 31, 2014: | ||||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||||
Exercise | Remaining | ||||||||||||||||||
Price | Contractual | ||||||||||||||||||
Term | |||||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||||
Options outstanding at January 1 | 1,717 | $ | 49.99 | ||||||||||||||||
Granted | 407 | 71.49 | |||||||||||||||||
Exercised | (828 | ) | 47.85 | ||||||||||||||||
Forfeited or expired | (27 | ) | 61.41 | ||||||||||||||||
Options outstanding at December 31 | 1,269 | $ | 58.03 | 6.3 | $ | 44,195 | |||||||||||||
Vested and expected to vest at December 31 | 1,193 | $ | 57.64 | 5.8 | $ | 42,003 | |||||||||||||
Exercisable at December 31 | 486 | $ | 48.21 | 3.7 | $ | 21,684 | |||||||||||||
Information about options in various price ranges | Information about options in various price ranges at December 31, 2014 follows: | ||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||
Price Ranges | Shares | Weighted- | Weighted- | Shares | Weighted- | ||||||||||||||
Average | Average Exercise | Average Exercise | |||||||||||||||||
Remaining | Price | Price | |||||||||||||||||
Contractual | |||||||||||||||||||
Term | |||||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||||
Less than $50.00 | 255 | 2.5 | $ | 41.45 | 255 | $ | 41.45 | ||||||||||||
50.00-55.00 | 273 | 4.1 | 53.63 | 133 | 53.63 | ||||||||||||||
55.00-60.00 | 334 | 7.6 | 58.23 | 94 | 58.28 | ||||||||||||||
60.00 and over | 407 | 9.1 | 71.2 | 4 | 61.83 | ||||||||||||||
Total | 1,269 | 6.3 | $ | 58.03 | 486 | $ | 48.21 | ||||||||||||
Summary of Nonvested stock awards | The following is a summary of the status of Ryder’s nonvested restricted stock awards as of and for the year ended December 31, 2014: | ||||||||||||||||||
Time-Vested | Market-Based | Performance-Based | |||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||
Average | Average | Average | |||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||
(In thousands) | (In thousands) | (In thousands) | |||||||||||||||||
Nonvested stock outstanding at January 1 | 534 | $ | 52.58 | 205 | $ | 33.71 | 15 | $ | 58.27 | ||||||||||
Granted | 186 | 78.31 | 41 | 61.07 | 23 | 71.89 | |||||||||||||
Vested | -186 | 51.83 | — | 25.29 | — | 58.21 | |||||||||||||
Forfeited (1) | -20 | 58.45 | -136 | 27.44 | -3 | 62.74 | |||||||||||||
Nonvested stock outstanding at December 31 | 514 | $ | 61.83 | 110 | $ | 52.52 | 35 | $ | 66.85 | ||||||||||
(1) Includes awards canceled due to performance and market conditions not being achieved. | |||||||||||||||||||
Summary of Employee Stock Purchase Plan | The following table summarizes the status of Ryder’s ESPP: | ||||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||||
Exercise | Remaining | ||||||||||||||||||
Price | Contractual | ||||||||||||||||||
Term | |||||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||||
Outstanding at January 1 | — | $ | — | ||||||||||||||||
Granted | 150 | 82.27 | |||||||||||||||||
Exercised | -150 | 82.27 | |||||||||||||||||
Forfeited or expired | — | — | |||||||||||||||||
Outstanding at December 31 | — | $ | — | — | $ | — | |||||||||||||
Exercisable at December 31 | — | $ | — | — | $ | — | |||||||||||||
Weighted-average assumptions used for options granted | The following table presents the weighted-average assumptions used for options granted: | ||||||||||||||||||
Years ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Option plans: | |||||||||||||||||||
Expected dividends | 1.90% | 2.10% | 2.20% | ||||||||||||||||
Expected volatility | 29.10% | 35.10% | 40.70% | ||||||||||||||||
Risk-free rate | 1.30% | 0.70% | 0.60% | ||||||||||||||||
Expected term in years | 4.3 years | 4.3 years | 3.7 years | ||||||||||||||||
Grant-date fair value | $14.99 | $13.97 | $14.07 | ||||||||||||||||
Purchase plan: | |||||||||||||||||||
Expected dividends | 1.70% | 2.20% | 2.70% | ||||||||||||||||
Expected volatility | 20.30% | 28.00% | 32.70% | ||||||||||||||||
Risk-free rate | —% | 0.10% | 0.10% | ||||||||||||||||
Expected term in years | 0.25 years | 0.25 years | 0.25 years | ||||||||||||||||
Grant-date fair value | $15.53 | $11.73 | $9.53 |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) (USD $) | 12 Months Ended | ||||||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||
Pension expense from continuing operations | Pension expense from continuing operations was as follows: | ||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Company-administered plans: | |||||||||||||||||||||||||
Service cost | 13,023 | 15,991 | 15,479 | ||||||||||||||||||||||
Interest cost | 100,909 | 89,682 | 94,605 | ||||||||||||||||||||||
Expected return on plan assets | (115,410 | ) | (106,150 | ) | (96,342 | ) | |||||||||||||||||||
Pension lump sum settlement expense | 97,231 | — | — | ||||||||||||||||||||||
Census data adjustment | — | 3,905 | — | ||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||
Net actuarial loss | 23,573 | 35,282 | 31,200 | ||||||||||||||||||||||
Prior service credit | (1,788 | ) | (1,818 | ) | (2,275 | ) | |||||||||||||||||||
117,538 | 36,892 | 42,667 | |||||||||||||||||||||||
Union-administered plans | 21,118 | 11,226 | 6,746 | ||||||||||||||||||||||
Net pension expense | $ | 138,656 | 48,118 | 49,413 | |||||||||||||||||||||
Company-administered plans: | |||||||||||||||||||||||||
U.S. | $ | 118,797 | 37,636 | 38,992 | |||||||||||||||||||||
Foreign | (1,259 | ) | (744 | ) | 3,675 | ||||||||||||||||||||
117,538 | 36,892 | 42,667 | |||||||||||||||||||||||
Union-administered plans | 21,118 | 11,226 | 6,746 | ||||||||||||||||||||||
$ | 138,656 | 48,118 | 49,413 | ||||||||||||||||||||||
Summary of benefit obligations, assets and funded status | The following table sets forth the benefit obligations, assets and funded status associated with our pension plans: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Change in benefit obligations: | |||||||||||||||||||||||||
Benefit obligations at January 1 | $ | 2,104,749 | 2,207,421 | ||||||||||||||||||||||
Service cost | 13,023 | 15,991 | |||||||||||||||||||||||
Interest cost | 100,909 | 89,682 | |||||||||||||||||||||||
Actuarial loss (gain) | 380,595 | (129,259 | ) | ||||||||||||||||||||||
Pension settlement | (259,319 | ) | — | ||||||||||||||||||||||
Benefits paid | (87,020 | ) | (82,120 | ) | |||||||||||||||||||||
Foreign currency exchange rate changes | (31,822 | ) | 3,034 | ||||||||||||||||||||||
Benefit obligations at December 31 | 2,221,115 | 2,104,749 | |||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Fair value of plan assets at January 1 | 1,832,490 | 1,612,927 | |||||||||||||||||||||||
Actual return on plan assets | 178,061 | 201,019 | |||||||||||||||||||||||
Employer contribution | 107,483 | 96,186 | |||||||||||||||||||||||
Benefits paid | (87,020 | ) | (82,120 | ) | |||||||||||||||||||||
Pension settlement | (223,654 | ) | — | ||||||||||||||||||||||
Foreign currency exchange rate changes | (31,943 | ) | 4,478 | ||||||||||||||||||||||
Fair value of plan assets at December 31 | 1,775,417 | 1,832,490 | |||||||||||||||||||||||
Funded status | $ | (445,698 | ) | (272,259 | ) | ||||||||||||||||||||
Funded percent | 80 | % | 87 | % | |||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets | Amounts recognized in the Consolidated Balance Sheets consisted of: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Noncurrent asset | $ | 2,698 | 23,556 | ||||||||||||||||||||||
Current liability | (3,739 | ) | (3,660 | ) | |||||||||||||||||||||
Noncurrent liability | (444,657 | ) | (292,155 | ) | |||||||||||||||||||||
Net amount recognized | $ | (445,698 | ) | (272,259 | ) | ||||||||||||||||||||
Amounts recognized in accumulated other comprehensive loss (pre-tax) | Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Prior service credit | $ | (195 | ) | (2,153 | ) | ||||||||||||||||||||
Net actuarial loss | 905,976 | 745,356 | |||||||||||||||||||||||
Net amount recognized | $ | 905,781 | 743,203 | ||||||||||||||||||||||
Summary of weighted-average actuarial assumptions | The following table sets forth the weighted-average actuarial assumptions used for Ryder’s pension plans in determining annual pension expense: | ||||||||||||||||||||||||
U.S. Plans | Foreign Plans | ||||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Discount rate | 5.00% | 4.10% | 4.90% | 4.57% | 4.43% | 4.76% | |||||||||||||||||||
Rate of increase in compensation levels | 3.00% | 4.00% | 4.00% | 3.09% | 3.55% | 3.54% | |||||||||||||||||||
Expected long-term rate of return on plan assets | 6.50% | 6.80% | 7.05% | 5.94% | 6.57% | 6.00% | |||||||||||||||||||
Gain and loss amortization in years | 23 | 23 | 24 | 27 | 26 | 27 | |||||||||||||||||||
The following table sets forth the weighted-average actuarial assumptions used in determining funded status: | |||||||||||||||||||||||||
U.S. Plans | Foreign Plans | ||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Discount rate | 4.15% | 5.00% | 3.69% | 4.58% | |||||||||||||||||||||
Rate of increase in compensation levels | 3.00% | 3.00% | 3.09% | 3.09% | |||||||||||||||||||||
Summary of pension obligations greater than fair value of related plan assets | At December 31, 2014 and 2013, our pension obligations (accumulated benefit obligations (ABO) and projected benefit obligations (PBO) greater than the fair value of related plan assets for our U.S. and foreign plans were as follows: | ||||||||||||||||||||||||
U.S. Plans | Foreign Plans | Total | |||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Accumulated benefit obligations | $ | 1,689,191 | 1,628,407 | 487,604 | 445,993 | 2,176,795 | 2,074,400 | ||||||||||||||||||
Plans with ABO in excess of plan assets: | |||||||||||||||||||||||||
PBO | $ | 1,728,643 | 1,656,086 | 9,172 | 9,303 | 1,737,815 | 1,665,389 | ||||||||||||||||||
ABO | $ | 1,689,191 | 1,628,407 | 5,620 | 7,740 | 1,694,811 | 1,636,147 | ||||||||||||||||||
Fair value of plan assets | $ | 1,289,621 | 1,369,574 | — | — | 1,289,621 | 1,369,574 | ||||||||||||||||||
Plans with PBO in excess of plan assets: | |||||||||||||||||||||||||
PBO | $ | 1,728,643 | 1,656,086 | 9,172 | 9,303 | 1,737,815 | 1,665,389 | ||||||||||||||||||
ABO | $ | 1,689,191 | 1,628,407 | 5,620 | 7,740 | 1,694,811 | 1,636,147 | ||||||||||||||||||
Fair value of plan assets | $ | 1,289,621 | 1,369,574 | — | — | 1,289,621 | 1,369,574 | ||||||||||||||||||
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value | The following table presents the fair value of each major category of pension plan assets and the level of inputs used to measure fair value as of December 31, 2014 and 2013: | ||||||||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Asset Category | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. common collective trusts | $ | 421,185 | — | 421,185 | — | ||||||||||||||||||||
Foreign common collective trusts | 405,224 | — | 405,224 | — | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
Corporate bonds | 70,999 | — | 70,999 | — | |||||||||||||||||||||
Common collective trusts | 788,282 | — | 788,282 | — | |||||||||||||||||||||
Private equity and hedge funds | 89,727 | — | — | 89,727 | |||||||||||||||||||||
Total | $ | 1,775,417 | — | 1,685,690 | 89,727 | ||||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Asset Category | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. companies | $ | 63,346 | 63,346 | — | — | ||||||||||||||||||||
U.S. common collective trusts | 406,358 | — | 406,358 | — | |||||||||||||||||||||
Foreign common collective trusts | 431,933 | — | 431,933 | — | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
Corporate bonds | 59,917 | — | 59,917 | — | |||||||||||||||||||||
Common collective trusts | 794,437 | — | 794,437 | — | |||||||||||||||||||||
Private equity and hedge funds | 76,499 | — | — | 76,499 | |||||||||||||||||||||
Total | $ | 1,832,490 | 63,346 | 1,692,645 | 76,499 | ||||||||||||||||||||
Summary of changes in fair value of the pension plans Level 3 assets | The following table presents a summary of changes in the fair value of the pension plans’ Level 3 assets for the years ended December 31, 2014 and 2013: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Beginning balance at January 1 | $ | 76,499 | 71,207 | ||||||||||||||||||||||
Return on plan assets: | |||||||||||||||||||||||||
Relating to assets still held at the reporting date | 4,903 | 4,258 | |||||||||||||||||||||||
Relating to assets sold during the period | 1,882 | 2,194 | |||||||||||||||||||||||
Purchases, sales, settlements and expenses | 6,443 | (1,160 | ) | ||||||||||||||||||||||
Ending balance at December 31 | $ | 89,727 | 76,499 | ||||||||||||||||||||||
Pension benefits expected to be paid | The following table details pension benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter: | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2015 | $ | 94,093 | |||||||||||||||||||||||
2016 | 98,874 | ||||||||||||||||||||||||
2017 | 103,272 | ||||||||||||||||||||||||
2018 | 108,311 | ||||||||||||||||||||||||
2019 | 113,078 | ||||||||||||||||||||||||
2020-2024 | 622,761 | ||||||||||||||||||||||||
Schedule of multi-employer plan | Among other factors, plans in the red zone are generally less than sixty-five percent funded, plans in the yellow zone are less than eighty percent funded, and plans in the green zone are at least eighty percent funded. | ||||||||||||||||||||||||
Pension Protection Act Zone Status | Ryder Contributions | Expiration Date(s) of Collective-Bargaining Agreement(s) | |||||||||||||||||||||||
Pension Fund | Employer Identification Number | 2014 | 2013 | FIP/RP Status Pending/ Implemented (1) | 2014 | 2013 | 2012 | Surcharge Imposed | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Western Conference Teamsters | 91-6145047 | Green | Green | No | $ | 2,315 | 2,180 | 1,943 | No | 1/12/15 to 6/30/19 | |||||||||||||||
IAM National | 51-6031295 | Green | Green | No | 3,311 | 2,987 | 2,038 | No | 9/14/15 to 9/30/19 | ||||||||||||||||
Automobile Mechanics | 36-6042061 | Red | Red | RP Adopted | 1,632 | 1,530 | 1,527 | Yes | 5/31/16 to 10/31/17 | ||||||||||||||||
Local No. 701 | |||||||||||||||||||||||||
Central States Southeast and Southwest Areas | 36-6044243 | Red | Red | RP adopted | 211 | 226 | 226 | No | 10/31/15 to 5/31/17 | ||||||||||||||||
Other funds | 1,085 | 1,483 | 1,012 | ||||||||||||||||||||||
Total contributions | 8,554 | 8,406 | 6,746 | ||||||||||||||||||||||
Pension settlement charges | 12,564 | 2,820 | — | ||||||||||||||||||||||
Union-administered plans | $ | 21,118 | 11,226 | 6,746 | |||||||||||||||||||||
_____________ | |||||||||||||||||||||||||
-1 | The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. | ||||||||||||||||||||||||
Weighted-average discount rates used in determining annual postretirement benefit expense | The following table sets forth the weighted-average discount rates used in determining annual postretirement benefit expense: | ||||||||||||||||||||||||
U.S. Plan | Foreign Plan | ||||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Discount rate | 5.00% | 4.10% | 4.90% | 4.80% | 4.00% | 4.50% | |||||||||||||||||||
Other Postretirement Benefits [Member] | |||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||
Pension expense from continuing operations | Total postretirement benefit expense was as follows: | ||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Service cost | $ | 446 | 981 | 1,095 | |||||||||||||||||||||
Interest cost | 1,421 | 1,580 | 1,980 | ||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||
Net actuarial gain | (725 | ) | (14 | ) | (20 | ) | |||||||||||||||||||
Prior service credit | (2,459 | ) | (231 | ) | (231 | ) | |||||||||||||||||||
Postretirement benefit (income) expense | $ | (1,317 | ) | 2,316 | 2,824 | ||||||||||||||||||||
U.S. | $ | (1,839 | ) | 1,625 | 2,142 | ||||||||||||||||||||
Foreign | 522 | 691 | 682 | ||||||||||||||||||||||
$ | (1,317 | ) | 2,316 | 2,824 | |||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets | Amounts recognized in the Consolidated Balance Sheets consisted of: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Current liability | $ | 2,112 | 2,414 | ||||||||||||||||||||||
Noncurrent liability | 26,889 | 28,374 | |||||||||||||||||||||||
Amount recognized | $ | 29,001 | 30,788 | ||||||||||||||||||||||
Amounts recognized in accumulated other comprehensive loss (pre-tax) | Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Prior service credit | $ | (2,527 | ) | (4,986 | ) | ||||||||||||||||||||
Net actuarial gain | (5,933 | ) | (6,239 | ) | |||||||||||||||||||||
Net amount recognized | $ | (8,460 | ) | (11,225 | ) | ||||||||||||||||||||
Summary of weighted-average actuarial assumptions | Assumptions used in determining accrued postretirement benefit obligations were as follows: | ||||||||||||||||||||||||
U.S. Plan | Foreign Plan | ||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Discount rate | 4.15 | % | 5 | % | 4 | % | 4.8 | % | |||||||||||||||||
Rate of increase in compensation levels | 3 | % | 3 | % | 3 | % | 3 | % | |||||||||||||||||
Healthcare cost trend rate assumed for next year | 7 | % | 7.25 | % | 6 | % | 6.5 | % | |||||||||||||||||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 5 | % | 5 | % | 5 | % | 5 | % | |||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2023 | 2023 | 2017 | 2017 | |||||||||||||||||||||
Pension benefits expected to be paid | The following table details other postretirement benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter: | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2015 | $ | 2,156 | |||||||||||||||||||||||
2016 | 2,273 | ||||||||||||||||||||||||
2017 | 2,324 | ||||||||||||||||||||||||
2018 | 2,376 | ||||||||||||||||||||||||
2019 | 2,404 | ||||||||||||||||||||||||
2020-2024 | 10,824 | ||||||||||||||||||||||||
Interest cost | $1,421 | $1,580 | $1,980 | ||||||||||||||||||||||
Benefit obligations associated with postretirement benefit plans | The following table sets forth the benefit obligations associated with our postretirement benefit plans: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Benefit obligations at January 1 | $ | 30,788 | 40,599 | ||||||||||||||||||||||
Service cost | 446 | 981 | |||||||||||||||||||||||
Interest cost | 1,421 | 1,580 | |||||||||||||||||||||||
Actuarial gain | (1,010 | ) | (9,332 | ) | |||||||||||||||||||||
Benefits paid | (1,989 | ) | (2,515 | ) | |||||||||||||||||||||
Foreign currency exchange rate changes | (655 | ) | (525 | ) | |||||||||||||||||||||
Benefit obligations at December 31 | $ | 29,001 | 30,788 | ||||||||||||||||||||||
Other_Items_Impacting_Comparab1
Other Items Impacting Comparability Other Items Impacting Comparability (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Other Items Impacting Comparability | Excluding these items from our segment measure of performance allows for better year over year comparison: | |||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Pension lump sum settlement loss(1) | $ | (97,231 | ) | — | — | |||||||
Pension settlement charges (1) | (12,564 | ) | (2,820 | ) | — | |||||||
Restructuring and other (charges) recoveries, net(2) | (2,387 | ) | 470 | (8,070 | ) | |||||||
Acquisition-related tax adjustment | (1,808 | ) | — | — | ||||||||
Acquisition transaction costs (3) | (566 | ) | — | (368 | ) | |||||||
Consulting fees | (400 | ) | — | — | ||||||||
Foreign currency translation benefit | — | 1,904 | — | |||||||||
Superstorm Sandy vehicle-related recoveries (losses) | — | 600 | (8,230 | ) | ||||||||
Restructuring and other (charges) recoveries, net and other items | $ | (114,956 | ) | $ | 154 | $ | (16,668 | ) | ||||
_______________ | ||||||||||||
-1 | See Note 23, "Employee Benefit Plans," for additional information. | |||||||||||
-2 | Refer to Note 4, "Restructuring and Other Charges (Recoveries),” for additional information. | |||||||||||
-3 | See Note 3, "Acquisitions," for additional information |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||
Supplemental cash flow information | Supplemental cash flow information was as follows: | ||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Interest paid | $ | 139,595 | 132,946 | 126,764 | |||||||
Income taxes paid | 11,382 | 13,063 | 11,613 | ||||||||
Changes in accounts payable related to purchases of revenue earning equipment | 39,071 | 43,745 | 27,528 | ||||||||
Operating and revenue earning equipment acquired under capital leases (1) | 7,972 | 5,698 | 20,670 | ||||||||
Fair value of debt assumed on acquisition | — | — | 379 | ||||||||
____________________________ | |||||||||||
(1) The 2012 amount includes $20 million of capital leases assumed in the Euroway acquisition. |
Miscellaneous_Income_Net_Table
Miscellaneous Income, Net (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
Schedule of miscellaneous income, net | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Contract settlement | $ | 3,014 | $ | — | $ | — | ||||||
Gains on sales of operating property and equipment | 2,909 | 1,020 | 4,456 | |||||||||
Business interruption insurance recoveries | 808 | 2,743 | 1,991 | |||||||||
Foreign currency translation benefit (1) | — | 1,904 | — | |||||||||
Rabbi trust investment (expense) income | 2,726 | 4,475 | 1,497 | |||||||||
Other, net | 4,156 | 5,230 | 3,783 | |||||||||
Total | $ | 13,613 | $ | 15,372 | $ | 11,727 | ||||||
(1) Refer to Note 25, "Other Items Impacting Comparability," for additional information |
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Business segment revenue and EBT from continuing operations | Business segment revenue and EBT from continuing operations is as follows: | ||||||||||||||||
Years ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Revenue: | |||||||||||||||||
Fleet Management Solutions: | |||||||||||||||||
Full service lease | $ | 2,102,703 | 2,016,570 | 1,956,812 | |||||||||||||
Commercial rental | 836,719 | 753,456 | 738,564 | ||||||||||||||
Full service lease and commercial rental | 2,939,422 | 2,770,026 | 2,695,376 | ||||||||||||||
Contract maintenance | 182,411 | 178,001 | 184,149 | ||||||||||||||
Contract-related maintenance | 196,841 | 186,580 | 170,323 | ||||||||||||||
Other | 71,064 | 72,029 | 71,955 | ||||||||||||||
Fuel services revenue | 787,887 | 829,586 | 854,578 | ||||||||||||||
Total Fleet Management Solutions from external customers | 4,177,625 | 4,036,222 | 3,976,381 | ||||||||||||||
Inter-segment revenue | 478,133 | 458,464 | 428,944 | ||||||||||||||
Fleet Management Solutions | 4,655,758 | 4,494,686 | 4,405,325 | ||||||||||||||
Supply Chain Solutions from external customers | 2,461,149 | 2,383,063 | 2,280,586 | ||||||||||||||
Eliminations | (478,133 | ) | (458,464 | ) | (428,944 | ) | |||||||||||
Total revenue | $ | 6,638,774 | 6,419,285 | 6,256,967 | |||||||||||||
EBT: | |||||||||||||||||
Fleet Management Solutions | $ | 434,018 | 344,049 | 307,628 | |||||||||||||
Supply Chain Solutions | 122,356 | 129,959 | 115,193 | ||||||||||||||
Eliminations | (41,361 | ) | (35,489 | ) | (29,265 | ) | |||||||||||
$ | 515,013 | 438,519 | 393,556 | ||||||||||||||
Unallocated Central Support Services | (51,740 | ) | (45,493 | ) | (42,348 | ) | |||||||||||
Non-operating pension costs | (9,768 | ) | (24,285 | ) | (31,423 | ) | |||||||||||
Restructuring and other (charges) recoveries, net and other items(1) | (114,956 | ) | 154 | (16,668 | ) | ||||||||||||
Earnings before income taxes from continuing operations | $ | 338,549 | 368,895 | 303,117 | |||||||||||||
______________ | |||||||||||||||||
-1 | See Note 25, “Other Items Impacting Comparability,” for a discussion of items excluded from our primary measure of segment performance. | ||||||||||||||||
Share-based compensation, depreciation expense, gains on vehicle sales, net, other non-cash charges, net, interest expense (income), capital expenditures and total assets | The following table sets forth share-based compensation, depreciation expense, gains on vehicle sales, net, other non-cash charges, net, interest expense (income), capital expenditures and total assets for the years ended December 31, 2014, 2013 and 2012 as provided to the chief operating decision-maker for each of Ryder’s reportable business segments: | ||||||||||||||||
FMS | SCS | CSS | Eliminations | Total | |||||||||||||
(In thousands) | |||||||||||||||||
2014 | |||||||||||||||||
Share-based compensation expense | $ | 4,895 | 4,381 | 11,629 | — | 20,905 | |||||||||||
Depreciation expense (1) | $ | 1,011,227 | 28,847 | 185 | — | 1,040,259 | |||||||||||
Gains on vehicles sales, net | $ | (126,410 | ) | (414 | ) | — | — | (126,824 | ) | ||||||||
Pension lump sum settlement expense | $ | 76,239 | 6,612 | 14,380 | — | 97,231 | |||||||||||
Amortization expense and other non-cash charges, net | $ | 19,936 | 1,825 | 25,502 | — | 47,263 | |||||||||||
Interest expense (income) (2) | $ | 144,583 | (2,327 | ) | (181 | ) | — | 142,075 | |||||||||
Capital expenditures paid (3) | $ | 2,166,319 | 22,824 | 70,021 | — | 2,259,164 | |||||||||||
Total assets | $ | 8,818,816 | 898,196 | 198,734 | (239,760 | ) | 9,675,986 | ||||||||||
2013 | |||||||||||||||||
Share-based compensation expense | $ | 4,979 | 4,934 | 9,397 | — | 19,310 | |||||||||||
Depreciation expense (1) | $ | 926,724 | 29,560 | 857 | — | 957,141 | |||||||||||
Gains on vehicles sales, net | $ | (96,011 | ) | (164 | ) | — | — | (96,175 | ) | ||||||||
Amortization expense and other non-cash charges, net | $ | 19,071 | 3,640 | 33,678 | — | 56,389 | |||||||||||
Interest expense (income) (2) | $ | 139,288 | (1,864 | ) | (228 | ) | — | 137,196 | |||||||||
Capital expenditures paid (3) | $ | 2,092,544 | 22,677 | 25,243 | — | 2,140,464 | |||||||||||
Total assets | $ | 8,309,149 | 869,074 | 160,249 | (234,690 | ) | 9,103,782 | ||||||||||
2012 | |||||||||||||||||
Share-based compensation expense | $ | 5,359 | 4,433 | 9,072 | — | 18,864 | |||||||||||
Depreciation expense (1) | $ | 910,352 | 28,275 | 1,050 | — | 939,677 | |||||||||||
Gains on vehicle sales, net | $ | (89,075 | ) | (33 | ) | — | — | (89,108 | ) | ||||||||
Amortization expense and other non-cash charges, net | $ | 15,567 | 2,768 | 30,874 | — | 49,209 | |||||||||||
Interest expense (income) (2) | $ | 140,747 | 11 | (201 | ) | — | 140,557 | ||||||||||
Capital expenditures paid (3) | $ | 2,090,443 | 19,278 | 23,514 | — | 2,133,235 | |||||||||||
Total assets | $ | 7,556,509 | 807,935 | 144,355 | (189,820 | ) | 8,318,979 | ||||||||||
____________ | |||||||||||||||||
-1 | Depreciation expense associated with CSS assets was allocated to business segments based upon estimated and planned asset utilization. Depreciation expense totaling $21 million, $14 million, and $12 million during 2014, 2013, and 2012, respectively, associated with CSS assets was allocated to other business segments. | ||||||||||||||||
-2 | Interest expense was primarily allocated to the FMS segment since such borrowings were used principally to fund the purchase of revenue earning equipment used in FMS; however, interest expense (income) was also reflected in SCS based on targeted segment leverage ratios. | ||||||||||||||||
-3 | Excludes acquisition payments of $10 million, $2 million, and $5 million in 2014, 2013, and 2012, respectively, comprised primarily of long-lived assets. See Note 3, “Acquisitions,” for additional information. | ||||||||||||||||
Geographic Information | Geographic Information | ||||||||||||||||
Years ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Revenue: | |||||||||||||||||
United States | $ | 5,614,037 | 5,411,376 | 5,231,899 | |||||||||||||
Foreign: | |||||||||||||||||
Canada | 435,280 | 455,440 | 477,495 | ||||||||||||||
Europe | 400,853 | 372,209 | 384,105 | ||||||||||||||
Mexico | 158,481 | 161,279 | 143,282 | ||||||||||||||
Asia | 30,123 | 18,981 | 20,186 | ||||||||||||||
1,024,737 | 1,007,909 | 1,025,068 | |||||||||||||||
Total | $ | 6,638,774 | 6,419,285 | 6,256,967 | |||||||||||||
Long-lived assets: | |||||||||||||||||
United States | $ | 6,583,508 | 5,996,646 | 5,261,622 | |||||||||||||
Foreign: | |||||||||||||||||
Canada | 530,316 | 529,880 | 557,351 | ||||||||||||||
Europe | 553,467 | 568,850 | 534,728 | ||||||||||||||
Mexico | 26,230 | 29,008 | 24,973 | ||||||||||||||
Asia | 521 | 279 | 787 | ||||||||||||||
1,110,534 | 1,128,017 | 1,117,839 | |||||||||||||||
Total | $ | 7,694,042 | 7,124,663 | 6,379,461 | |||||||||||||
Quarterly_Information_Unaudite1
Quarterly Information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||
Quarterly Information | ||||||||||||||||||||||||
Earnings from | Earnings from | Net Earnings per | ||||||||||||||||||||||
Continuing Operations | Continuing | Common Share | ||||||||||||||||||||||
Operations per | ||||||||||||||||||||||||
Common Share | ||||||||||||||||||||||||
Revenue | Net Earnings | Basic | Diluted | Basic | Diluted | |||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
First quarter | $ | 1,610,737 | 49,098 | 48,232 | 0.93 | 0.92 | 0.91 | 0.9 | ||||||||||||||||
Second quarter | 1,684,571 | 75,694 | 75,358 | 1.43 | 1.42 | 1.43 | 1.41 | |||||||||||||||||
Third quarter | 1,687,150 | 83,967 | 83,689 | 1.6 | 1.58 | 1.59 | 1.57 | |||||||||||||||||
Fourth quarter | 1,656,316 | 11,700 | 11,296 | 0.22 | 0.22 | 0.21 | 0.21 | |||||||||||||||||
Full year | $ | 6,638,774 | 220,459 | 218,575 | 4.18 | 4.14 | 4.14 | 4.11 | ||||||||||||||||
2013 | ||||||||||||||||||||||||
First quarter | $ | 1,563,017 | 40,802 | 39,924 | 0.79 | 0.79 | 0.77 | 0.77 | ||||||||||||||||
Second quarter | 1,603,999 | 62,575 | 62,194 | 1.21 | 1.19 | 1.2 | 1.19 | |||||||||||||||||
Third quarter | 1,634,540 | 73,875 | 71,067 | 1.41 | 1.4 | 1.36 | 1.35 | |||||||||||||||||
Fourth quarter | 1,617,729 | 65,944 | 64,607 | 1.25 | 1.24 | 1.23 | 1.22 | |||||||||||||||||
Full year | $ | 6,419,285 | 243,196 | 237,792 | 4.67 | 4.63 | 4.57 | $ | 4.53 | |||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Maximum amount of insurance risk of loss retained per occurrence | $3,000,000 |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred income taxes | $1,475,970 | $1,429,637 |
FIN 48 [Member] | Restatement Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred income taxes | $39,000 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2012 | Aug. 01, 2014 | Sep. 30, 2014 | |
Business Acquisition [Line Items] | ||||||
Payments to acquire businesses | $9,972,000 | $1,858,000 | $5,113,000 | |||
Goodwill acquired | 393,029,000 | 383,719,000 | 384,216,000 | |||
Transaction costs | 566,000 | 368,000 | ||||
Fair value of debt assumed on acquisition | 0 | 0 | 379,000 | |||
Euroway Ltd. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | 2,000,000 | |||||
Payments to acquire businesses | 2,000,000 | 1,000,000 | 1,000,000 | |||
Goodwill acquired | 6,000,000 | |||||
Transaction costs | 1,000,000 | |||||
Fair value of debt assumed on acquisition | 20,000,000 | |||||
Number of contract maintenance vehicles | 800 | |||||
Number of full service lease vehicles | 560 | |||||
Euroway Ltd. [Member] | Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Customer relationships and other intangibles | 3,000,000 | |||||
Bullwell Trailer Solutions, Ltd. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | 15,000,000 | |||||
Payments to acquire businesses | 8,000,000 | |||||
Contingent consideration | 6,000,000 | |||||
Goodwill acquired | 12,000,000 | |||||
Transaction costs | 1,000,000 | |||||
Bullwell Trailer Solutions, Ltd. [Member] | Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Customer relationships and other intangibles | $2,000,000 |
Restructuring_and_Other_Charge2
Restructuring and Other Charges (Recoveries) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges (recoveries), net | $2,387 | ($470) | $8,070 |
Employee severance and benefits [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges (recoveries), net | 2,387 | -470 | 7,205 |
Contract termination costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges (recoveries), net | $0 | $0 | $865 |
Restructuring_and_Other_Charge3
Restructuring and Other Charges (Recoveries) (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges (recoveries), net | $2,387 | ($470) | $8,070 |
Fleet Management Solutions [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges (recoveries), net | 515 | -470 | 6,448 |
Supply Chain Solutions [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges (recoveries), net | 951 | 0 | 1,346 |
Central Support Services [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges (recoveries), net | $921 | $0 | $276 |
Restructuring_and_Other_Charge4
Restructuring and Other Charges (Recoveries) (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
employees | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of positions eliminated as part of work force reductions | 350 | |||
Pre-tax restructuring charge | $7,000,000 | |||
Restructuring and other charges (recoveries), net | 2,387,000 | -470,000 | 8,070,000 | |
Hill Hire contract termination [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges (recoveries), net | $1,000,000 |
Receivables_Details
Receivables (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Trade | $693,114 | $680,345 |
Direct financing leases | 85,946 | 79,787 |
Other, primarily warranty and insurance | 32,192 | 34,193 |
Receivables, gross | 811,252 | 794,325 |
Allowance | -16,388 | -16,955 |
Total | $794,864 | $777,370 |
Prepaid_Expenses_and_Other_Cur2
Prepaid Expenses and Other Current Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Current deferred tax asset | $32,553 | $37,431 |
Restricted cash | 13,499 | 10,655 |
Prepaid vehicle licenses | 47,561 | 49,121 |
Prepaid operating taxes | 15,208 | 14,321 |
Prepaid sales commission | 12,255 | 10,033 |
Other | 44,158 | 37,702 |
Total | $165,234 | $159,263 |
Revenue_Earning_Equipment_Deta
Revenue Earning Equipment (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Revenue Earning Equipment [Line Items] | ||
Cost | $10,643,152 | $10,086,939 |
Accumulated Depreciation | -3,648,704 | -3,596,102 |
Net Book Value | 6,994,448 | 6,490,837 |
Held for use: Full service lease [Member] | ||
Revenue Earning Equipment [Line Items] | ||
Cost | 7,918,497 | 7,436,093 |
Accumulated Depreciation | -2,591,688 | -2,537,077 |
Net Book Value | 5,326,809 | 4,899,016 |
Estimated Useful Life, Minimum | 3 years | |
Estimated Useful Life, Maximum | 12 years | |
Held for use: Commercial rental [Member] | ||
Revenue Earning Equipment [Line Items] | ||
Cost | 2,411,957 | 2,210,863 |
Accumulated Depreciation | -830,683 | -747,283 |
Net Book Value | 1,581,274 | 1,463,580 |
Estimated Useful Life, Minimum | 4 years 6 months | |
Estimated Useful Life, Maximum | 12 years | |
Held-for-sale [Member] | ||
Revenue Earning Equipment [Line Items] | ||
Cost | 312,698 | 439,983 |
Accumulated Depreciation | -226,333 | -311,742 |
Net Book Value | $86,365 | $128,241 |
Revenue_Earning_Equipment_Deta1
Revenue Earning Equipment (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenue Earning Equipment [Line Items] | |||
Cost | $10,643,152,000 | $10,086,939,000 | |
Accumulated Depreciation | 3,648,704,000 | 3,596,102,000 | |
Revenue earning equipment depreciation expense | 961,000,000 | 884,000,000 | 867,000,000 |
Assets held under capital leases [Member] | |||
Revenue Earning Equipment [Line Items] | |||
Cost | 48,000,000 | 54,000,000 | |
Accumulated Depreciation | $22,000,000 | $22,000,000 |
Operating_Property_And_Equipme1
Operating Property And Equipment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Land | $201,089 | $193,031 | |
Buildings and improvements | 766,360 | 715,965 | |
Machinery and equipment | 663,616 | 595,244 | |
Other | 103,557 | 120,703 | |
Gross | 1,734,622 | 1,624,943 | |
Accumulated depreciation | -1,035,028 | -991,117 | |
Total | 699,594 | 633,826 | |
Operating equipment depreciation expense | $79,000 | $73,000 | $73,000 |
Minimum [Member] | Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 0 years | ||
Minimum [Member] | Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years | ||
Minimum [Member] | Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Minimum [Member] | Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Maximum [Member] | Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 0 years | ||
Maximum [Member] | Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 40 years | ||
Maximum [Member] | Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years | ||
Maximum [Member] | Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Goodwill, Gross, Beginning Balance | $412,940 | $413,437 |
Accumulated impairment losses, Beginning Balance | -29,221 | -29,221 |
Goodwill, Beginning Balance | 383,719 | 384,216 |
Purchase accounting adjustments | 377 | |
Foreign currency translation adjustment | -2,529 | -874 |
Acquisitions | 11,839 | |
Goodwill, Gross, Ending Balance | 422,250 | 412,940 |
Accumulated impairment losses, Ending Balance | -29,221 | -29,221 |
Goodwill, Ending Balance | 393,029 | 383,719 |
Fleet Management Solutions [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross, Beginning Balance | 223,204 | 223,129 |
Accumulated impairment losses, Beginning Balance | -10,322 | -10,322 |
Goodwill, Beginning Balance | 212,882 | 212,807 |
Purchase accounting adjustments | 377 | |
Foreign currency translation adjustment | -1,826 | -302 |
Acquisitions | 11,839 | |
Goodwill, Gross, Ending Balance | 233,217 | 223,204 |
Accumulated impairment losses, Ending Balance | -10,322 | -10,322 |
Goodwill, Ending Balance | 222,895 | 212,882 |
Supply Chain Solutions [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross, Beginning Balance | 189,736 | 190,308 |
Accumulated impairment losses, Beginning Balance | -18,899 | -18,899 |
Goodwill, Beginning Balance | 170,837 | 171,409 |
Purchase accounting adjustments | 0 | |
Foreign currency translation adjustment | -703 | -572 |
Acquisitions | 0 | |
Goodwill, Gross, Ending Balance | 189,033 | 189,736 |
Accumulated impairment losses, Ending Balance | -18,899 | -18,899 |
Goodwill, Ending Balance | $170,134 | $170,837 |
Intangible_Assets_Details_1
Intangible Assets (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite lived intangible assets: | ||
Accumulated amortization | ($42,374) | ($35,478) |
Total finite lived intangible assets | 57,915 | 62,459 |
Foreign currency translation adjustment | -380 | 863 |
Total | 66,619 | 72,406 |
Customer relationship intangibles [Member] | ||
Finite lived intangible assets: | ||
Customer relationship intangibles | 97,922 | 95,683 |
Other intangible assets [Member] | ||
Finite lived intangible assets: | ||
Customer relationship intangibles | 2,367 | 2,254 |
Trade Names [Member] | ||
Intangible Assets | ||
Indefinite lived intangible assets | $9,084 | $9,084 |
Intangible_Assets_Details_Text
Intangible Assets (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense associated with finite lived intangible assets | $7 | $8 | $8 |
Minimum [Member] | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2015 | 6 | ||
2016 | 6 | ||
2017 | 6 | ||
2018 | 6 | ||
2019 | 6 | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2015 | 7 | ||
2016 | 7 | ||
2017 | 7 | ||
2018 | 7 | ||
2019 | $7 | ||
Customer relationship intangibles [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives | 7 years | ||
Customer relationship intangibles [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives | 19 years |
Direct_Financing_Leases_and_Ot2
Direct Financing Leases and Other Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Direct Financing Leases And Other Assets [Abstract] | ||
Direct financing leases, net | $331,065 | $320,327 |
Investments held in Rabbi Trusts | 38,681 | 32,519 |
Contract incentives | 21,475 | 20,355 |
Insurance receivables | 13,957 | 14,933 |
Debt issuance costs | 16,503 | 16,570 |
Prepaid pension asset | 2,698 | 23,556 |
Interest rate swap agreements | 4,565 | 9,333 |
Other | 17,155 | 22,908 |
Total | $446,099 | $460,501 |
Accrued_Expenses_and_Other_Lia2
Accrued Expenses and Other Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Expenses | ||
Salaries and wages | $114,446 | $106,281 |
Deferred compensation | 3,209 | 2,505 |
Pension benefits | 3,739 | 3,660 |
Other postretirement benefits | 2,112 | 2,414 |
Other employee benefits | 7,172 | 3,809 |
Insurance obligations | 132,246 | 125,835 |
Environmental liabilities | 3,877 | 4,515 |
Operating taxes | 92,330 | 94,188 |
Income taxes | 5,066 | 2,623 |
Interest | 32,441 | 33,654 |
Deposits, mainly from customers | 59,388 | 55,854 |
Deferred revenue | 11,759 | 15,123 |
Acquisition holdbacks | 3,817 | 2,012 |
Other | 48,930 | 43,864 |
Total | 520,532 | 496,337 |
Non-Current Liabilities | ||
Salaries and wages | 0 | 0 |
Deferred compensation | 37,093 | 31,896 |
Pension benefits | 444,657 | 292,155 |
Other postretirement benefits | 26,889 | 28,374 |
Other employee benefits | 19,276 | 6,712 |
Insurance obligations | 189,431 | 186,700 |
Environmental liabilities | 8,002 | 8,548 |
Operating taxes | 0 | 0 |
Income taxes | 22,843 | 23,813 |
Interest | 0 | 0 |
Deposits, mainly from customers | 5,929 | 6,239 |
Deferred revenue | 0 | 0 |
Acquisition holdbacks | 2,187 | 0 |
Other | 30,369 | 31,868 |
Total | 786,676 | 616,305 |
Total | ||
Salaries and wages | 114,446 | 106,281 |
Deferred compensation | 40,302 | 34,401 |
Pension benefits | 448,396 | 295,815 |
Other postretirement benefits | 29,001 | 30,788 |
Other employee benefits | 26,448 | 10,521 |
Insurance obligations | 321,677 | 312,535 |
Environmental liabilities | 11,879 | 13,063 |
Operating taxes | 92,330 | 94,188 |
Income taxes | 27,909 | 26,436 |
Interest | 32,441 | 33,654 |
Deposits, mainly from customers | 65,317 | 62,093 |
Deferred revenue | 11,759 | 15,123 |
Acquisition holdbacks | 6,004 | 2,012 |
Other | 79,299 | 75,732 |
Total | $1,307,208 | $1,112,642 |
Accrued_Expenses_and_Other_Lia3
Accrued Expenses and Other Liabilities (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accrued Liabilities and Other Liabilities [Abstract] | |||
Benefit (charge) within operating expense | $14 | $5 | $1 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings from continuing operations before income taxes: | |||
United States | $275,912 | $302,689 | $241,672 |
Foreign | 62,637 | 66,206 | 61,445 |
Earnings from continuing operations before income taxes | 338,549 | 368,895 | 303,117 |
Current tax expense (benefit) from continuing operations: | |||
Federal | -230 | 233 | -4,157 |
State | 6,396 | 4,194 | 11,514 |
Foreign | 7,163 | 7,691 | 7,759 |
Total | 13,329 | 12,118 | 15,116 |
Deferred tax expense from continuing operations: | |||
Federal | 90,104 | 98,036 | 77,819 |
State | 12,429 | 15,399 | 3,871 |
Foreign | 2,228 | 146 | 5,412 |
Total | 104,761 | 113,581 | 87,102 |
Provision for income taxes from continuing operations | $118,090 | $125,699 | $102,218 |
Income_Taxes_Details_1
Income Taxes (Details 1) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of federal statutory tax rate with effective tax rate | |||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Impact on deferred taxes for changes in tax rates | -0.90% | 0.10% | 0.00% |
State income taxes, net of federal income tax benefit | 5.20% | 4.00% | 4.10% |
Foreign rates varying from federal | -3.70% | -4.10% | -2.80% |
Tax reviews and audits | -1.10% | -0.80% | -2.70% |
Miscellaneous items, net | 0.40% | -0.10% | 0.10% |
Effective tax rate | 34.90% | 34.10% | 33.70% |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
New York State Division of Taxation and Finance [Member] | |||
Income Tax Examination [Line Items] | |||
Net Earnings | $1,776 | ||
RHODE ISLAND [Member] | |||
Income Tax Examination [Line Items] | |||
Net Earnings | 626 | ||
Puerto Rico [Member] | |||
Income Tax Examination [Line Items] | |||
Net Earnings | -503 | ||
United Kingdom [Member] | |||
Income Tax Examination [Line Items] | |||
Net Earnings | 485 | -856 | |
Canada [Member] | |||
Income Tax Examination [Line Items] | |||
Net Earnings | ($671) |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ||
Self-insurance accruals | $81,908 | $69,291 |
Net operating loss carryforwards | 377,740 | 322,380 |
Alternative minimum taxes | 10,727 | 10,727 |
Accrued compensation and benefits | 68,626 | 60,039 |
Federal benefit on state tax positions | 18,847 | 18,417 |
Pension benefits | 157,082 | 87,745 |
Miscellaneous other accruals | 33,090 | 39,414 |
Deferred tax assets gross | 748,020 | 608,013 |
Valuation allowance | -24,742 | -33,793 |
Deferred tax assets net | 723,278 | 574,220 |
Deferred income tax liabilities: | ||
Property and equipment bases difference | -2,149,699 | -1,943,923 |
Other items | -16,996 | -22,503 |
Deferred tax liabilities | -2,166,695 | -1,966,426 |
Net deferred income tax liability | ($1,443,417) | ($1,392,206) |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1 | $56,813 | $52,271 | $62,247 |
Additions based on tax positions related to the current year | 6,896 | 7,606 | 3,980 |
Reductions due to lapse of applicable statutes of limitation | -3,227 | -3,064 | -13,956 |
Gross balance at December 31 | 60,482 | 56,813 | 52,271 |
Interest and penalties | 5,125 | 5,756 | 5,319 |
Balance at December 31 | $65,607 | $62,569 | $57,590 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Examination [Line Items] | |||
Deferred tax assets included in prepaid expenses and other current assets | $32,553,000 | $37,431,000 | |
Undistributed foreign earnings | 658,000,000 | ||
Net operating loss carryforwards | 377,740,000 | 322,380,000 | |
Alternative minimum taxes | 10,727,000 | 10,727,000 | |
Unrecognized tax benefits that would affect the effective tax rate in future periods | 47,000,000 | ||
Deferred income tax accrued interest and penalties | 4,000,000 | 5,000,000 | |
Income tax related to interest and penalties | -1,000,000 | ||
Decrease in unrecognized tax benefits related to federal, state and foreign tax positions | 4,000,000 | ||
Total assets of variable interest entities | 205,000,000 | 205,000,000 | |
Total liabilities of variable interest entities | 246,000,000 | 246,000,000 | |
Changes in restricted cash | 3,396,000 | -10,553,000 | 19,204,000 |
Domestic Country [Member] | |||
Income Tax Examination [Line Items] | |||
Net operating loss carryforwards | 334,000,000 | ||
State and Local Jurisdiction [Member] | |||
Income Tax Examination [Line Items] | |||
Net operating loss carryforwards | 21,000,000 | ||
Foreign Country [Member] | |||
Income Tax Examination [Line Items] | |||
Net operating loss carryforwards | $23,000,000 |
Leases_Details
Leases (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Net investment in direct financing and sales-type leases | ||
Total minimum lease payments receivable | $659,551 | $633,445 |
Less: Executory costs | -210,241 | -198,755 |
Minimum lease payments receivable | 449,310 | 434,690 |
Less: Allowance for uncollectibles | -288 | -501 |
Net minimum lease payments receivable | 449,022 | 434,189 |
Unguaranteed residuals | 55,992 | 57,424 |
Less: Unearned income | -88,003 | -91,499 |
Net investment in direct financing and sales-type leases | 417,011 | 400,114 |
Current portion | -85,946 | -79,787 |
Non-current portion | $331,065 | $320,327 |
Leases_Details_1
Leases (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Credit risk profile by creditworthiness category of direct financing lease receivables | ||
Credit risk profile by creditworthiness category of direct financing lease receivables, Total | $449,310 | $434,690 |
Very low risk to low risk [Member] | ||
Credit risk profile by creditworthiness category of direct financing lease receivables | ||
Credit risk profile by creditworthiness category of direct financing lease receivables, Total | 198,496 | 203,556 |
Moderate [Member] | ||
Credit risk profile by creditworthiness category of direct financing lease receivables | ||
Credit risk profile by creditworthiness category of direct financing lease receivables, Total | 158,790 | 164,761 |
Moderately high to high risk [Member] | ||
Credit risk profile by creditworthiness category of direct financing lease receivables | ||
Credit risk profile by creditworthiness category of direct financing lease receivables, Total | $92,024 | $66,373 |
Leases_Details_2
Leases (Details 2) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
As Lessor - Operating Leases | |
2015 | $974,684 |
2016 | 795,201 |
2017 | 627,594 |
2018 | 465,224 |
2019 | 296,028 |
Thereafter | 219,924 |
Total | 3,378,655 |
As Lessor - Direct Financing Leases | |
2015 | 108,433 |
2016 | 94,174 |
2017 | 75,385 |
2018 | 59,288 |
2019 | 41,929 |
Thereafter | 70,101 |
Total | 449,310 |
As Lessee - Operating Leases | |
2015 | 103,624 |
2016 | 75,094 |
2017 | 51,096 |
2018 | 48,589 |
2019 | 35,874 |
Thereafter | 65,646 |
Total | $379,923 |
Leases_Details_Textual
Leases (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Leased Assets [Line Items] | |||
Impaired direct financing receivables | $0 | ||
Allowance for credit losses | 288,000 | 501,000 | |
Sale and leaseback of revenue earning equipment | 125,825,000 | 0 | 130,184,000 |
Rent expense | 147,000,000 | 152,000,000 | 146,000,000 |
Contingent rentals from operating leases | 318,000,000 | 318,000,000 | 319,000,000 |
Direct Financing Leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Contingent rental income | $11,000,000 | $11,000,000 | $11,000,000 |
Trucks and Tractors [Member] | |||
Operating Leased Assets [Line Items] | |||
Minimum lease term of revenue earning equipment | 3 years | ||
Maximum lease term of revenue earning equipment | 7 years | ||
Trailers [Member] | |||
Operating Leased Assets [Line Items] | |||
Maximum lease term of revenue earning equipment | 10 years |
Debt_Details
Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Short-term Debt [Line Items] | ||
Short-term debt | $3,773 | $1,315 |
Current portion of long-term debt, including capital leases | 8,434 | 258,123 |
Total short-term debt and current portion of long-term debt | 12,207 | 259,438 |
Commercial paper | 276,694 | |
Unsecured U.S. notes - Medium-term notes | 3,772,159 | 3,271,734 |
Unsecured U.S. obligations, principally bank term loans | 110,500 | 55,500 |
Unsecured foreign obligations | 295,776 | 315,558 |
Capital Lease Obligations | 37,560 | 38,911 |
Total before fair market value adjustment | 4,503,879 | 4,179,939 |
Fair market value adjustment on notes subject to hedging | 4,830 | 8,171 |
Total after fair market value adjustment | 4,508,709 | 4,188,110 |
Long-term debt | 4,500,275 | 3,929,987 |
Total debt | 4,512,482 | 4,189,425 |
Short-term debt [Member] | ||
Short-term Debt [Line Items] | ||
Short-term debt, Weighted-Average Interest Rate | 1.30% | 1.70% |
Us Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Long-term debt, Weighted-Average Interest Rate | 0.35% | 0.28% |
Commercial paper | 486,939 | |
Canadian Commerial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Long-term debt, Weighted-Average Interest Rate | 0.00% | 1.13% |
Commercial paper | 0 | 11,297 |
Global Revolving Credit Facility [Member] | ||
Short-term Debt [Line Items] | ||
Long-term debt, Weighted-Average Interest Rate | 1.60% | 0.00% |
Global revolving credit facility | $11,190 | $0 |
Unsecured Us Notes Medium Term Notes [Member] | ||
Short-term Debt [Line Items] | ||
Long-term debt, Weighted-Average Interest Rate | 3.29% | 3.76% |
Unsecured Us Obligations Principally Bank Term Loans [Member] | ||
Short-term Debt [Line Items] | ||
Long-term debt, Weighted-Average Interest Rate | 0.76% | 1.45% |
Unsecured Foreign Obligations [Member] | ||
Short-term Debt [Line Items] | ||
Long-term debt, Weighted-Average Interest Rate | 2.01% | 1.99% |
Capital Lease Obligations [Member] | ||
Short-term Debt [Line Items] | ||
Long-term debt, Weighted-Average Interest Rate | 3.65% | 3.81% |
Debt_Details_1
Debt (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Capital Leases | |
Capital leases, 2014 | $9,374 |
Capital leases, 2015 | 8,362 |
Capital leases, 2016 | 9,325 |
Capital leases, 2017 | 6,906 |
Capital leases, 2018 | 5,983 |
Capital leases, Thereafter | 0 |
Capital leases, Total | 39,950 |
Debt | |
Debt, 2014 | 4,272 |
Debt, 2015 | 860,339 |
Debt, 2016 | 699,484 |
Debt, 2017 | 1,741,992 |
Debt, 2018 | 998,647 |
Debt, Thereafter | 165,357 |
Debt, Total | 4,470,091 |
Maturities of debt | |
Imputed interest | -2,390 |
Present value of minimum capitalized lease payments | 37,560 |
Current portion | -8,434 |
Long-term capitalized lease obligation | $29,126 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | 12 Months Ended | 9 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Sep. 30, 2014 | Jan. 31, 2015 | Dec. 31, 2013 | 31-May-14 | Feb. 28, 2014 | Sep. 30, 2013 | |
Institutions | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized original issue discounts | $8,000,000 | $8,000,000 | |||||
Aggregate notional amount of interest rate swaps | 400,000,000 | ||||||
Maximum borrowing capacity under global revolving credit facility | 900,000,000 | ||||||
Number of lending institutions | 12 | ||||||
Global revolving credit facility covenant terms, debt to consolidated tangible net worth ratio | less than or equal to 300% | ||||||
Debt to consolidated net worth ratio | 188.00% | ||||||
Amount available under the credit facility, net of outstanding commercial paper borrowings | 612,000,000 | ||||||
Annual facility fee | 0.13% | ||||||
Commercial paper classified as long term debt | 276,694,000 | ||||||
Trade receivables borrowings | 60,000,000 | ||||||
Current portion of long-term debt | 699,000,000 | ||||||
Total available proceeds under trade receivables purchase and sale program | 175,000,000 | ||||||
Amount outstanding under trade receivables purchase and sale program | 0 | 0 | |||||
Unsecured Medium Term Notes due March 2017 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Repurchase price condition of notes | 101% of Principal Plus Accrued And Unpaid Interest | ||||||
Commercial paper [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Commercial paper classified as long term debt | 498,000,000 | ||||||
Unsecured Medium Term Notes Due September 2019 [Domain] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of unsecured medium-term notes issued | 400,000,000 | ||||||
Unsecured Medium Term Notes Due 2019 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of unsecured medium-term notes issued | 350,000,000 | ||||||
Repurchase price condition of notes | 101% of principal plus accrued and unpaid interest | ||||||
Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity under global revolving credit facility | 1,200,000,000 | ||||||
Annual facility fee | 0.10% | ||||||
Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Annual facility fee | 0.08% | ||||||
Minimum [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Annual facility fee | 0.08% | ||||||
Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Annual facility fee | 0.28% | ||||||
Maximum [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Annual facility fee | 0.25% | ||||||
Letter of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity under global revolving credit facility | 75,000,000 | ||||||
Letter of credit outstanding amount | 0 | ||||||
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Swap [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate notional amount of interest rate swaps | $600,000,000 | $400,000,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Interest rate swaps, assets | $4,565 | $9,333 |
Investments held in Rabbi Trusts | 38,681 | 32,519 |
Fair Value, Measurements, Recurring [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Total assets at fair value | 43,723 | 41,852 |
Total liabilities at fair value | 212 | 1,162 |
Fair Value, Measurements, Recurring [Member] | Cash and Cash Equivalents [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 4,418 | 7,101 |
Fair Value, Measurements, Recurring [Member] | U.S. Equity Mutual Funds [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 23,589 | 16,479 |
Fair Value, Measurements, Recurring [Member] | Foreign equity mutual funds [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 4,724 | 4,323 |
Fair Value, Measurements, Recurring [Member] | Fixed income mutual funds [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 5,950 | 4,616 |
Fair Value, Measurements, Recurring [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Interest rate swaps, assets | 477 | |
Fair Value, Measurements, Recurring [Member] | Direct Financing Leases and Other Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Interest rate swaps, assets | 4,565 | 9,333 |
Investments held in Rabbi Trusts | 38,681 | 32,519 |
Fair Value, Measurements, Recurring [Member] | Other non-current liabilities [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Interest rate swaps, liabilities | 212 | 1,162 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Total assets at fair value | 38,681 | 32,519 |
Interest rate swaps, liabilities | 0 | |
Total liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Cash and Cash Equivalents [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 4,418 | 7,101 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | U.S. Equity Mutual Funds [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 23,589 | 16,479 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Foreign equity mutual funds [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 4,724 | 4,323 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Fixed income mutual funds [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 5,950 | 4,616 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Interest rate swaps, assets | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Direct Financing Leases and Other Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Interest rate swaps, assets | 0 | 0 |
Investments held in Rabbi Trusts | 38,681 | 32,519 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Other non-current liabilities [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Interest rate swaps, liabilities | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Total assets at fair value | 5,042 | 9,333 |
Interest rate swaps, liabilities | 1,162 | |
Total liabilities at fair value | 212 | 1,162 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Cash and Cash Equivalents [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. Equity Mutual Funds [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Foreign equity mutual funds [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Fixed income mutual funds [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Interest rate swaps, assets | 477 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Direct Financing Leases and Other Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Interest rate swaps, assets | 4,565 | 9,333 |
Investments held in Rabbi Trusts | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Other non-current liabilities [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Interest rate swaps, liabilities | 212 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Total assets at fair value | 0 | 0 |
Interest rate swaps, liabilities | 0 | |
Total liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Cash and Cash Equivalents [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | U.S. Equity Mutual Funds [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Foreign equity mutual funds [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Fixed income mutual funds [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Investments held in Rabbi Trusts | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Interest rate swaps, assets | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Direct Financing Leases and Other Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Interest rate swaps, assets | 0 | 0 |
Investments held in Rabbi Trusts | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Other non-current liabilities [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Interest rate swaps, liabilities | $0 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (Fair Value, Measurements, Nonrecurring [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Losses | $18,000 | ||
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets held for sale | 10,978 | 24,388 | |
Total Losses | 10,764 | 16,428 | |
Level 3 [Member] | Revenue earning equipment, Trucks [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets held for sale | 6,135 | 13,326 | |
Total Losses | 6,274 | 9,926 | |
Level 3 [Member] | Revenue earning equipment, Tractors [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets held for sale | 4,054 | 10,339 | |
Total Losses | 3,450 | 4,824 | |
Level 3 [Member] | Revenue earning equipment, Trailers [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets held for sale | 789 | 723 | |
Total Losses | $1,040 | $1,678 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total fair value of debt | $4,590,000,000 | $4,280,000,000 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss to reflect changes in fair value | $18,000,000 |
Derivatives_Details
Derivatives (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Summarized details of swaps outstanding and the related hedged items | ||
Aggregate notional amount of interest rate swaps | 400,000 | |
Interest Rate Swaps Maturing March 2015 [Member] | ||
Summarized details of swaps outstanding and the related hedged items | ||
Issuance date | 24-Feb-11 | |
Maturity date | 2-Mar-15 | |
Face value of medium - term notes | 350,000 | |
Aggregate notional amount of interest rate swaps | 150,000 | |
Fixed interest rate | 3.15% | |
Weighted-average variable interest rate on hedged debt | 1.28% | 1.34% |
Interest Rate Swaps Maturing June 2017 [Member] | ||
Summarized details of swaps outstanding and the related hedged items | ||
Issuance date | 24-May-11 | |
Maturity date | 1-Jun-17 | |
Face value of medium - term notes | 350,000 | |
Aggregate notional amount of interest rate swaps | 150,000 | |
Fixed interest rate | 3.50% | |
Weighted-average variable interest rate on hedged debt | 1.42% | 1.44% |
Interest Rate Swaps Maturing November 2018 [Member] | ||
Summarized details of swaps outstanding and the related hedged items | ||
Issuance date | 12-Nov-13 | |
Maturity date | 15-Nov-18 | |
Face value of medium - term notes | 300,000 | |
Aggregate notional amount of interest rate swaps | 100,000 | |
Fixed interest rate | 2.45% | |
Weighted-average variable interest rate on hedged debt | 1.19% | 1.19% |
Interest Rate Swaps Maturing June 2019 [Member] | ||
Summarized details of swaps outstanding and the related hedged items | ||
Issuance date | 25-Feb-14 | |
Maturity date | 1-Jun-19 | |
Face value of medium - term notes | 350,000 | |
Aggregate notional amount of interest rate swaps | 100,000 | |
Fixed interest rate | 2.55% | |
Weighted-average variable interest rate on hedged debt | 1.10% | 0.00% |
Interest Rate Swaps Maturing September 2019 [Member] | ||
Summarized details of swaps outstanding and the related hedged items | ||
Issuance date | 6-May-14 | |
Maturity date | 3-Sep-19 | |
Face value of medium - term notes | 400,000 | |
Aggregate notional amount of interest rate swaps | $100,000 | |
Fixed interest rate | 2.45% | |
Weighted-average variable interest rate on hedged debt | 0.86% | 0.00% |
Derivatives_Details_1
Derivatives (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Location and amount of gains (losses) on derivative instruments and related hedged items | |||
Total | $0 | $0 | $0 |
Interest expense [Member] | Interest rate swap [Member] | |||
Location and amount of gains (losses) on derivative instruments and related hedged items | |||
Derivative: Interest rate swap | -3,341 | -8,554 | -5,118 |
Interest expense [Member] | Fixed-rate debt [Member] | |||
Location and amount of gains (losses) on derivative instruments and related hedged items | |||
Hedged item: Fixed-rate debt | $3,341 | $8,554 | $5,118 |
Guarantees_Details
Guarantees (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Guarantor Obligations [Line Items] | ||
Maximum Exposure of Guarantee | $50,615 | $30,293 |
Carrying Amount of Liability | 0 | 6,234 |
Vehicle Residual Value Guarnatees Operating Lease Programs [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Exposure of Guarantee | 50,615 | 24,059 |
Carrying Amount of Liability | 0 | 0 |
Standby letters of credit [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Exposure of Guarantee | 0 | 6,234 |
Carrying Amount of Liability | $0 | $6,234 |
Guarantees_Details_1
Guarantees (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Guarantees [Abstract] | ||
Letters of credit | $234,482 | $210,995 |
Surety bonds | $99,831 | $99,486 |
Guarantees_Details_Textual
Guarantees (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Guarantor Obligations [Line Items] | ||
Maximum exposure of guarantee | $50,615 | $30,293 |
Carrying amount of liability | 0 | 6,234 |
Contingent rentals associated with residual value guarantees [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum exposure of guarantee | 225,000 | 120,000 |
Carrying amount of liability | $200 | $200 |
Share_Repurchase_Programs_Deta
Share Repurchase Programs (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Share Repurchase Programs (Textual) [Abstract] | ||
Common stock repurchases | $106,286 | $26,343 |
December Two Thousand Thirteen Anti Dilutive Share Repurchase Program [Member] [Domain] | ||
Share Repurchase Programs (Textual) [Abstract] | ||
Maximum number of share repurchases authorization | 2,000,000 | |
December Two Thousand Eleven Anti Dilutive Share Repurchase Program [Member] [Member] | ||
Share Repurchase Programs (Textual) [Abstract] | ||
Common stock repurchases | 106,286 | |
Maximum number of share repurchases authorization | 2,000,000 | |
December Two Thousand Nine Anti Dilutive Share Repurchase Program [Member] | ||
Share Repurchase Programs (Textual) [Abstract] | ||
Common stock repurchases | 26,000 | |
Common Stock [Member] | ||
Share Repurchase Programs (Textual) [Abstract] | ||
Repurchased and retired shares | -1,323,278 | -543,923 |
Common stock repurchases | $662 | $272 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Currency Translation Adjustments and Other | |||
Beginning balance | $35,875 | $57,860 | $28,219 |
Other current period change | 71,962 | 21,985 | -29,641 |
Ending balance | -36,087 | 35,875 | 57,860 |
Net Actuarial Loss | |||
Beginning balance | -477,883 | -648,113 | -599,675 |
Amortization | 14,866 | 22,820 | 20,315 |
Pension lump sum settlement expense | 61,333 | ||
Other current period change | -184,257 | 147,410 | -68,753 |
Ending balance | -585,941 | -477,883 | -648,113 |
Prior Service Credit | |||
Beginning balance | 3,760 | 2,634 | 4,291 |
Amortization | 2,676 | 1,340 | 1,657 |
Other current period change | 674 | 2,466 | |
Ending balance | 1,758 | 3,760 | 2,634 |
Accumulated Other Comprehensive Loss | |||
Beginning balance | -438,248 | -587,619 | -567,165 |
Amortization | 12,190 | 21,480 | 18,658 |
Pension lump sum settlement expense | -61,333 | ||
Other current period change | -255,545 | 127,891 | -39,112 |
Ending balance | ($620,270) | ($438,248) | ($587,619) |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings per share — Basic: | |||||||||||
Earnings from continuing operations | $11,700 | $83,967 | $75,694 | $49,098 | $65,944 | $73,875 | $62,575 | $40,802 | $220,459 | $243,196 | $200,899 |
Less: Distributed and undistributed earnings allocated to nonvested stock | -858 | -2,173 | -2,566 | ||||||||
Earnings from continuing operations available to common shareholders — Basic | 219,601 | 241,023 | 198,333 | ||||||||
Weighted average common shares outstanding— Basic | 52,536 | 51,617 | 50,449 | ||||||||
Earnings from continuing operations per common share — Basic | $0.22 | $1.60 | $1.43 | $0.93 | $1.25 | $1.41 | $1.21 | $0.79 | $4.18 | $4.67 | $3.93 |
Earnings per share — Diluted: | |||||||||||
Earnings from continuing operations | 11,700 | 83,967 | 75,694 | 49,098 | 65,944 | 73,875 | 62,575 | 40,802 | 220,459 | 243,196 | 200,899 |
Less: Distributed and undistributed earnings allocated to nonvested stock | -853 | -2,159 | -2,556 | ||||||||
Earnings from continuing operations available to common shareholders — Diluted | $219,606 | $241,037 | $198,343 | ||||||||
Weighted average common shares outstanding— Basic | 52,536 | 51,617 | 50,449 | ||||||||
Effect of dilutive equity awards | 500 | 454 | 291 | ||||||||
Weighted average common shares outstanding— Diluted | 53,036 | 52,071 | 50,740 | ||||||||
Earnings from continuing operations per common share — Diluted | $0.22 | $1.58 | $1.42 | $0.92 | $1.24 | $1.40 | $1.19 | $0.79 | $4.14 | $4.63 | $3.91 |
Anti-dilutive equity awards and market-based restrictive stock rights not included above | 161 | 785 | 2,278 |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based compensation expense and income tax benefits recognized during the periods | |||
Share-based compensation expense | $20,905 | $19,310 | $18,864 |
Income tax benefit | -7,300 | -6,224 | -6,309 |
Share-based compensation expense, net of tax | 13,605 | 13,086 | 12,555 |
Summary of compensation expense recognized related to cash awards | |||
Cash awards | 1,900 | 996 | 1,099 |
Stock option and stock purchase plan [Member] | |||
Share-based compensation expense and income tax benefits recognized during the periods | |||
Share-based compensation expense | 9,023 | 8,303 | 9,469 |
Nonvested stock [Member] | |||
Share-based compensation expense and income tax benefits recognized during the periods | |||
Share-based compensation expense | $11,882 | $11,007 | $9,395 |
ShareBased_Compensation_Plans_2
Share-Based Compensation Plans (Details 1) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding Ending Balance, Shares | 1,269 |
Outstanding weighted average exercise price, Ending Balance | $58.03 |
Summary of stock option activity | |
Exercisable, Shares | 486 |
Exercisable, weighted average exercise price | $48.21 |
Outstanding, weighted average remaining contractual term (years) | 6 years 3 months 18 days |
Stock options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding Beginning Balance, Shares | 1,717 |
Granted, Shares | 407 |
Exercised, Shares | -828 |
Forfeited or expired, Shares | 27 |
Outstanding, weighted average exercise price, Beginning Balance | $49.99 |
Granted, weighted average exercise price | $71.49 |
Exercised, weighted average exercise price | $47.85 |
Forfeited or expired, weighted average exercise price | $61.41 |
Summary of stock option activity | |
Vested or expected to vest, Shares | 1,193 |
Vested or expected, weighted average exercise price | $57.64 |
Vested or expected to vest, weighted average remaining contractual term (years) | 5 years 9 months 18 days |
Exercisable, weighted average remaining contractual term (years) | 3 years 8 months 12 days |
Outstanding, Aggregate Intrinsic Value, of In-The-Money Options | $44,195 |
Vested or expected to vest, Aggregate Intrinsic Value of In-The-Money Options | 42,003 |
Exercisable, Aggregate Intrinsic Value of In-The-Money Options | $21,684 |
ShareBased_Compensation_Plans_3
Share-Based Compensation Plans (Details 2) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Information about options in various price ranges | |
Outstanding Shares | 1,269 |
Weighted Average Remaining Contractual Term | 6 years 3 months 18 days |
Weighted Average Exercise Price | $58.03 |
Options Exercisable, shares | 486 |
Options Exercisable, weighted average exercise price | $48.21 |
Less than $50.00 [Member] | |
Information about options in various price ranges | |
Upper limit price range | $50 |
Outstanding Shares | 255 |
Weighted Average Remaining Contractual Term | 2 years 6 months 0 days |
Weighted Average Exercise Price | $41.45 |
Options Exercisable, shares | 255 |
Options Exercisable, weighted average exercise price | $41.45 |
50.00-55.00 [Member] | |
Information about options in various price ranges | |
Lower limit price range | $50 |
Upper limit price range | $55 |
Outstanding Shares | 273 |
Weighted Average Remaining Contractual Term | 4 years 1 month 6 days |
Weighted Average Exercise Price | $53.63 |
Options Exercisable, shares | 133 |
Options Exercisable, weighted average exercise price | $53.63 |
55.00-60.00 [Member] | |
Information about options in various price ranges | |
Lower limit price range | $55 |
Upper limit price range | $60 |
Outstanding Shares | 334 |
Weighted Average Remaining Contractual Term | 7 years 7 months 6 days |
Weighted Average Exercise Price | $58.23 |
Options Exercisable, shares | 94 |
Options Exercisable, weighted average exercise price | $58.28 |
60.00 and over [Member] | |
Information about options in various price ranges | |
Lower limit price range | $60 |
Outstanding Shares | 407 |
Weighted Average Remaining Contractual Term | 9 years 1 month 6 days |
Weighted Average Exercise Price | $71.20 |
Options Exercisable, shares | 4 |
Options Exercisable, weighted average exercise price | $61.83 |
ShareBased_Compensation_Plans_4
Share-Based Compensation Plans (Details 3) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Time Vested [Member] | |
Summary of Nonvested stock awards | |
Nonvested stock awards outstanding, Beginning balance | 534 |
Nonvested stock awards granted | 186 |
Nonvested stock awards vested | -186 |
Nonvested stock awards forfeited | -20 |
Nonvested stock awards outstanding, Ending balance | 514 |
Weighted-Average Grant Date, Fair Value, Beginning balance | $52.58 |
Weighted-Average Grant Date, Fair Value, granted | $78.31 |
Weighted-Average Grant Date, Fair Value, vested | $51.83 |
Weighted-Average Grant Date, Fair Value, forfeited | $58.45 |
Weighted-Average Grant Date, Fair Value, Ending balance | $61.83 |
Market Based Vested [Member] | |
Summary of Nonvested stock awards | |
Nonvested stock awards outstanding, Beginning balance | 205 |
Nonvested stock awards granted | 41 |
Nonvested stock awards vested | 0 |
Nonvested stock awards forfeited | -136 |
Nonvested stock awards outstanding, Ending balance | 110 |
Weighted-Average Grant Date, Fair Value, Beginning balance | $33.71 |
Weighted-Average Grant Date, Fair Value, granted | $61.07 |
Weighted-Average Grant Date, Fair Value, vested | $25.29 |
Weighted-Average Grant Date, Fair Value, forfeited | $27.44 |
Weighted-Average Grant Date, Fair Value, Ending balance | $52.52 |
Performance-Based Vested [Member] [Domain] | |
Summary of Nonvested stock awards | |
Nonvested stock awards outstanding, Beginning balance | 15 |
Nonvested stock awards granted | 23 |
Nonvested stock awards vested | 0 |
Nonvested stock awards forfeited | -3 |
Nonvested stock awards outstanding, Ending balance | 35 |
Weighted-Average Grant Date, Fair Value, Beginning balance | $58.27 |
Weighted-Average Grant Date, Fair Value, granted | $71.89 |
Weighted-Average Grant Date, Fair Value, vested | $58.21 |
Weighted-Average Grant Date, Fair Value, forfeited | $62.74 |
Weighted-Average Grant Date, Fair Value, Ending balance | $66.85 |
ShareBased_Compensation_Plans_5
Share-Based Compensation Plans (Details 4) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding Ending Balance, Shares | 1,269 |
Outstanding weighted average exercise price, Ending Balance | $58.03 |
Summary of employee stock purchase plan | |
Exercisable, Shares | 486 |
Exercisable, weighted average exercise price | $48.21 |
Outstanding, weighted average remaining contractual term | 6 years 3 months 18 days |
Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding Beginning Balance, Shares | 0 |
Granted, Shares | 150 |
Exercised, Shares | -150 |
Forfeited or expired, Shares | 0 |
Outstanding Ending Balance, Shares | 0 |
Outstanding, weighted average exercise price, Beginning Balance | $0 |
Granted, weighted average exercise price | $82.27 |
Exercised, weighted average exercise price | $82.27 |
Forfeited or expired, weighted average exercise price | $0 |
Outstanding weighted average exercise price, Ending Balance | $0 |
Summary of employee stock purchase plan | |
Exercisable, Shares | 0 |
Exercisable, weighted average exercise price | $0 |
Outstanding, weighted average remaining contractual term | 0 years |
Exercisable, weighted average remaining contractual term | 0 years |
Outstanding, Aggregate Intrinsic Value, of In-The-Money Options | $0 |
Exercisable, Aggregate Intrinsic Value of In-The-Money Options | $0 |
ShareBased_Compensation_Plans_6
Share-Based Compensation Plans (Details 5) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Option [Member] | |||
Weighted-average assumptions used for options granted | |||
Expected dividends | 1.90% | 2.10% | 2.20% |
Expected volatility | 29.10% | 35.10% | 40.70% |
Risk-free interest rate | 1.30% | 0.70% | 0.60% |
Expected term in years | 4 years 3 months 17 days | 4 years 3 months 17 days | 3 years 8 months 12 days |
Grant-date fair value | $14.99 | $13.97 | $14.07 |
Employee Stock Purchase Plan [Member] | |||
Weighted-average assumptions used for options granted | |||
Expected dividends | 1.70% | 2.20% | 2.70% |
Expected volatility | 20.30% | 28.00% | 32.70% |
Risk-free interest rate | 0.00% | 0.10% | 0.10% |
Expected term in years | 3 months | 3 months | 3 months |
Grant-date fair value | $15.53 | $11.73 | $9.53 |
ShareBased_Compensation_Plans_7
Share-Based Compensation Plans (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unused shares | 1,900,000 | ||
Share-based compensation plan, vesting proportion per year | one-third | ||
Performance-based restricted stock awards granted | 23,000 | 16,000 | |
Share-Based Compensation Plans (Textual) [Abstract] | |||
Total unrecognized pre-tax compensation expense | $23,000,000 | ||
Unrecognized compensation costs weighted-average period | 1 year 8 months 15 days | ||
Total fair value of equity awards | 18,000,000 | 12,000,000 | 12,000,000 |
Total intrinsic value of option exercised | 28,000,000 | 30,000,000 | 6,000,000 |
Total cash received exercised stock option | 46,000,000 | 87,000,000 | |
Common stock issued | 46,568,000 | 90,646,000 | 28,386,000 |
Tax benefits realized from share based employee compensation arrangements | 1,000,000 | 5,000,000 | 1,000,000 |
Time Vested Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation plan, vesting period | 3 years | ||
Market Based Cash Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Liability related to the cash awards | $4,000,000 | $2,000,000 | |
Stock Option And Nonvested Stock Plan Member | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unused shares | 1,700,000 | ||
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation plan, vesting period | 3 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation plan, vesting period | 1 year | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share authorized | 4,500,000 | ||
Unused shares | 300,000 | ||
Percentage of payroll deductions of eligible compensation | 15.00% | ||
Percentage of share purchased fair market value | 85.00% | ||
Employee stock purchase plan holding period | 90 days | ||
Minimum [Member] | Market Based Restricted Stock Rights, 2012 Grant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential performance award percentage | 25.00% | ||
Maximum [Member] | ROC performance based restricted stock rights, 2013 Grant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential performance award percentage | 125.00% | ||
Maximum [Member] | Market Based Restricted Stock Rights, 2012 Grant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential performance award percentage | 125.00% | 125.00% |
Employee_Benefits_Plans_Detail
Employee Benefits Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension expense from continuing operations | |||
Pension lump sum settlement expense | $97,231 | $0 | $0 |
Amortization of: | |||
Postretirement benefit (income) expense | 138,656 | 48,118 | 49,413 |
Company Administered Plan [Member] | |||
Pension expense from continuing operations | |||
Service cost | 13,023 | 15,991 | 15,479 |
Interest cost | 100,909 | 89,682 | 94,605 |
Expected return on plan assets | -115,410 | -106,150 | -96,342 |
Pension lump sum settlement expense | 97,231 | 0 | 0 |
Actuarial gain | 0 | -3,905 | 0 |
Amortization of: | |||
Net actuarial loss (gain) | 23,573 | 35,282 | 31,200 |
Prior service credit | -1,788 | -1,818 | -2,275 |
Postretirement benefit (income) expense | 117,538 | 36,892 | 42,667 |
Company Administered Plan [Member] | Pension Expense U.S. [Member] | |||
Amortization of: | |||
Postretirement benefit (income) expense | 118,797 | 37,636 | 38,992 |
Company Administered Plan [Member] | Pension Expense Foreign [Member] | |||
Amortization of: | |||
Postretirement benefit (income) expense | -1,259 | -744 | 3,675 |
Union Administered Plan [Member] | |||
Amortization of: | |||
Postretirement benefit (income) expense | $21,118 | $11,226 | $6,746 |
Employee_Benefits_Plans_Detail1
Employee Benefits Plans (Details 1) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
U.S. Plans [Member] | |||
Summary of weighted-average actuarial assumptions used in determining annual pension expense | |||
Discount rate | 5.00% | 4.10% | 4.90% |
Rate of increase in compensation levels | 3.00% | 4.00% | 4.00% |
Expected long-term rate of return on plan assets | 6.50% | 6.80% | 7.05% |
Gain and loss amortization in years | 23 years | 23 years | 24 years |
Foreign Plans [Member] | |||
Summary of weighted-average actuarial assumptions used in determining annual pension expense | |||
Discount rate | 4.57% | 4.43% | 4.76% |
Rate of increase in compensation levels | 3.09% | 3.55% | 3.54% |
Expected long-term rate of return on plan assets | 5.94% | 6.57% | 6.00% |
Gain and loss amortization in years | 27 years | 26 years | 27 years |
Employee_Benefits_Plans_Detail2
Employee Benefits Plans (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in benefit obligations: | |||
Pension settlement | ($12,564) | ($2,820) | $0 |
Change in plan assets: | |||
Defined Benefit Plan, Funded Percentage | 80.00% | 87.00% | |
Pension Plans [Member] | |||
Change in benefit obligations: | |||
Benefit obligations at January 1 | 2,104,749 | 2,207,421 | |
Interest cost | 100,909 | 89,682 | |
Actuarial loss (gain) | 380,595 | -129,259 | |
Pension settlement | -259,319 | 0 | |
Benefits paid | -87,020 | -82,120 | |
Foreign currency exchange rate changes | -31,822 | 3,034 | |
Benefit obligations at December 31 | 2,221,115 | 2,104,749 | |
Change in plan assets: | |||
Fair value of plan assets at January 1 | 1,832,490 | 1,612,927 | |
Actual return on plan assets | 178,061 | 201,019 | |
Employer contribution | 107,483 | 96,186 | |
Benefits paid | -87,020 | -82,120 | |
Pension settlement | -223,654 | 0 | |
Foreign currency exchange rate changes | -31,943 | 4,478 | |
Fair value of plan assets at December 31 | 1,775,417 | 1,832,490 | |
Funded status | ($445,698) | ($272,259) |
Employee_Benefits_Plans_Detail3
Employee Benefits Plans (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amounts recognized in the Consolidated Balance Sheets | ||
Noncurrent asset | $2,698 | $23,556 |
Pension Plans [Member] | ||
Amounts recognized in the Consolidated Balance Sheets | ||
Noncurrent asset | 2,698 | 23,556 |
Current liability | -3,739 | -3,660 |
Noncurrent liability | -444,657 | -292,155 |
Net amount recognized | -445,698 | -272,259 |
Amounts recognized in accumulated other comprehensive loss (pre-tax) | ||
Prior service credit | -195 | -2,153 |
Net actuarial loss (gain) | 905,976 | 745,356 |
Net amount recognized | $905,781 | $743,203 |
Employee_Benefits_Plans_Detail4
Employee Benefits Plans (Details 4) | Dec. 31, 2014 | Dec. 31, 2013 |
U.S. Plans [Member] | ||
Summary of weighted-average actuarial assumptions used in determining funded status | ||
Discount rate | 4.15% | 5.00% |
Rate of increase in compensation levels | 3.00% | 3.00% |
Foreign Plans [Member] | ||
Summary of weighted-average actuarial assumptions used in determining funded status | ||
Discount rate | 3.69% | 4.58% |
Rate of increase in compensation levels | 3.09% | 3.09% |
Employee_Benefits_Plans_Detail5
Employee Benefits Plans (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of pension obligations greater than fair value of related plan assets | ||
Accumulated benefit obligations | $2,176,795 | $2,074,400 |
Plans with ABO in excess of plan assets: | ||
PBO | 1,737,815 | 1,665,389 |
ABO | 1,694,811 | 1,636,147 |
Fair value of plan assets | 1,289,621 | 1,369,574 |
Plans with PBO in excess of plan assets: | ||
PBO | 1,737,815 | 1,665,389 |
ABO | 1,694,811 | 1,636,147 |
Fair value of plan assets | 1,289,621 | 1,369,574 |
U.S. Plans [Member] | ||
Summary of pension obligations greater than fair value of related plan assets | ||
Accumulated benefit obligations | 1,689,191 | 1,628,407 |
Plans with ABO in excess of plan assets: | ||
PBO | 1,728,643 | 1,656,086 |
ABO | 1,689,191 | 1,628,407 |
Fair value of plan assets | 1,289,621 | 1,369,574 |
Plans with PBO in excess of plan assets: | ||
PBO | 1,728,643 | 1,656,086 |
ABO | 1,689,191 | 1,628,407 |
Fair value of plan assets | 1,289,621 | 1,369,574 |
Foreign Plans [Member] | ||
Summary of pension obligations greater than fair value of related plan assets | ||
Accumulated benefit obligations | 487,604 | 445,993 |
Plans with ABO in excess of plan assets: | ||
PBO | 9,172 | 9,303 |
ABO | 5,620 | 7,740 |
Fair value of plan assets | 0 | 0 |
Plans with PBO in excess of plan assets: | ||
PBO | 9,172 | 9,303 |
ABO | 5,620 | 7,740 |
Fair value of plan assets | $0 | $0 |
Employee_Benefits_Plans_Detail6
Employee Benefits Plans (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $89,727 | $76,499 | $71,207 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,775,417 | 1,832,490 | 1,612,927 |
Pension Benefits [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 63,346 | |
Pension Benefits [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,685,690 | 1,692,645 | |
Pension Benefits [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 89,727 | 76,499 | |
Pension Benefits [Member] | Private equity and hedge funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 89,727 | 76,499 | |
Pension Benefits [Member] | Private equity and hedge funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Private equity and hedge funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Private equity and hedge funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 89,727 | 76,499 | |
Pension Benefits [Member] | Equity securities [Member] | U.S. companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 63,346 | ||
Pension Benefits [Member] | Equity securities [Member] | U.S. companies [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 63,346 | ||
Pension Benefits [Member] | Equity securities [Member] | U.S. companies [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pension Benefits [Member] | Equity securities [Member] | U.S. companies [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pension Benefits [Member] | Equity securities [Member] | U.S. mutual funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 421,185 | 406,358 | |
Pension Benefits [Member] | Equity securities [Member] | U.S. mutual funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Equity securities [Member] | U.S. mutual funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 421,185 | 406,358 | |
Pension Benefits [Member] | Equity securities [Member] | U.S. mutual funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Equity securities [Member] | Foreign mutual funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 405,224 | 431,933 | |
Pension Benefits [Member] | Equity securities [Member] | Foreign mutual funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Equity securities [Member] | Foreign mutual funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 405,224 | 431,933 | |
Pension Benefits [Member] | Equity securities [Member] | Foreign mutual funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fixed income securities [Member] | Corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 70,999 | 59,917 | |
Pension Benefits [Member] | Fixed income securities [Member] | Corporate bonds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fixed income securities [Member] | Corporate bonds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 70,999 | 59,917 | |
Pension Benefits [Member] | Fixed income securities [Member] | Corporate bonds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fixed income securities [Member] | Mutual funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 788,282 | 794,437 | |
Pension Benefits [Member] | Fixed income securities [Member] | Mutual funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fixed income securities [Member] | Mutual funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 788,282 | 794,437 | |
Pension Benefits [Member] | Fixed income securities [Member] | Mutual funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $0 | $0 |
Employee_Benefits_Plans_Detail7
Employee Benefits Plans (Details 7) (Level 3 [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Level 3 [Member] | ||
Summary of changes in fair value of the pension plans' level 3 assets | ||
Fair value of plan assets at January 1 | $76,499 | $71,207 |
Return on plan assets: | ||
Relating to assets still held at the reporting date | 4,903 | 4,258 |
Relating to assets sold during the period | 1,882 | 2,194 |
Purchases, sales, settlements and expenses | 6,443 | -1,160 |
Fair value of plan assets at December 31 | $89,727 | $76,499 |
Employee_Benefits_Plans_Detail8
Employee Benefits Plans (Details 8) (Pension Benefits [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Pension Benefits [Member] | |
Pension benefits expected to be paid | |
2015 | $94,093 |
2016 | 98,874 |
2017 | 103,272 |
2018 | 108,311 |
2019 | 113,078 |
2020-2024 | $622,761 |
Employee_Benefits_Plans_Detail9
Employee Benefits Plans (Details 9) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions | $8,554 | $8,406 | $6,746 |
Pension settlement charges | 12,564 | 2,820 | 0 |
Union-administered plans | 138,656 | 48,118 | 49,413 |
Union Administered Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Union-administered plans | 21,118 | 11,226 | 6,746 |
Western Conference Teamsters [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer Identification Number | 91-6145047 | ||
Pension Protection Act Zone Status | Green | Green | |
FIP/RP Status Pending/ Implemented | No | ||
Contributions | 2,315 | 2,180 | 1,943 |
Surcharge Imposed | No | ||
Expiration Date of Collective Bargaining Agreement | 1/12/15 to 6/30/19 | ||
IAM National [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer Identification Number | 51-6031295 | ||
Pension Protection Act Zone Status | Green | Green | |
FIP/RP Status Pending/ Implemented | No | ||
Contributions | 3,311 | 2,987 | 2,038 |
Surcharge Imposed | No | ||
Expiration Date of Collective Bargaining Agreement | 9/14/15 to 9/30/19 | ||
Automobile Mechanics Local No. 701 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer Identification Number | 36-6042061 | ||
Pension Protection Act Zone Status | Red | Red | |
FIP/RP Status Pending/ Implemented | RPÂ Adopted | ||
Contributions | 1,632 | 1,530 | 1,527 |
Surcharge Imposed | Yes | ||
Expiration Date of Collective Bargaining Agreement | 5/31/16 to 10/31/17 | ||
Central States Southwest and Southwest Areas [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer Identification Number | 36-6044243 | ||
Pension Protection Act Zone Status | Red | Red | |
FIP/RP Status Pending/ Implemented | RPÂ adopted | ||
Contributions | 211 | 226 | 226 |
Surcharge Imposed | No | ||
Expiration Date of Collective Bargaining Agreement | 10/31/15 to 5/31/17 | ||
Other Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions | $1,085 | $1,483 | $1,012 |
Recovered_Sheet2
Employee Benefits Plans (Details 10) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amortization of: | |||
Postretirement benefit (income) expense | $138,656 | $48,118 | $49,413 |
Other Postretirement Benefits [Member] | |||
Other Postretirement benefit expense | |||
Service cost | 446 | 981 | 1,095 |
Interest cost | 1,421 | 1,580 | 1,980 |
Amortization of: | |||
Net actuarial loss (gain) | -725 | -14 | -20 |
Prior service credit | -2,459 | -231 | -231 |
Postretirement benefit (income) expense | -1,317 | 2,316 | 2,824 |
Other Postretirement benefit expense U.S. [Member] | |||
Amortization of: | |||
Postretirement benefit (income) expense | -1,839 | 1,625 | 2,142 |
Other Postretirement benefit expense Foreign [Member] | |||
Amortization of: | |||
Postretirement benefit (income) expense | $522 | $691 | $682 |
Recovered_Sheet3
Employee Benefits Plans (Details 11) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Postretirement benefit expense U.S. [Member] | |||
Weighted-average discount rates used in determining annual postretirement benefit expense | |||
Discount rate | 5.00% | 4.10% | 4.90% |
Other Postretirement benefit expense Foreign [Member] | |||
Weighted-average discount rates used in determining annual postretirement benefit expense | |||
Discount rate | 4.80% | 4.00% | 4.50% |
Recovered_Sheet4
Employee Benefits Plans (Details 12) (Other Postretirement Benefits [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Postretirement Benefits [Member] | |||
Benefit Obligations associated with postretirement benefit plans | |||
Benefit obligations at January 1 | $30,788 | $40,599 | |
Service cost | 446 | 981 | 1,095 |
Interest cost | 1,421 | 1,580 | 1,980 |
Actuarial gain | -1,010 | -9,332 | |
Benefits paid | -1,989 | -2,515 | |
Foreign currency exchange rate changes | -655 | -525 | |
Benefit obligations at December 31 | $29,001 | $30,788 | $40,599 |
Recovered_Sheet5
Employee Benefits Plans (Details 13) (Other Postretirement Benefits [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Postretirement Benefits [Member] | ||
Amounts recognized in the Consolidated Balance Sheets | ||
Current liability | $2,112 | $2,414 |
Noncurrent liability | 26,889 | 28,374 |
Amount recognized | 29,001 | 30,788 |
Amounts recognized in accumulated other comprehensive loss (pre-tax) | ||
Prior service credit | -2,527 | -4,986 |
Net actuarial loss (gain) | -5,933 | -6,239 |
Net amount recognized | ($8,460) | ($11,225) |
Recovered_Sheet6
Employee Benefits Plans (Details 14) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Other Postretirement Benefits U.S [Member] | ||
Summary of actuarial assumptions used in determining accrued postretirement benefit obligations | ||
Discount rate | 4.15% | 5.00% |
Rate of increase in compensation levels | 3.00% | 3.00% |
Healthcare cost trend rate assumed for next year | 7.00% | 7.25% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2023 | 2023 |
Other Postretirement Benefits Foreign [Member] | ||
Summary of actuarial assumptions used in determining accrued postretirement benefit obligations | ||
Discount rate | 4.00% | 4.80% |
Rate of increase in compensation levels | 3.00% | 3.00% |
Healthcare cost trend rate assumed for next year | 6.00% | 6.50% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2017 | 2017 |
Recovered_Sheet7
Employee Benefits Plans (Details 15) (Other Postretirement Benefits [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Other Postretirement Benefits [Member] | |
Pension benefits expected to be paid | |
2015 | $2,156 |
2016 | 2,273 |
2017 | 2,324 |
2018 | 2,376 |
2019 | 2,404 |
2020-2024 | $10,824 |
Recovered_Sheet8
Employee Benefits Plans (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | Oct. 22, 2014 | |
participant | participant | participant | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Pension benefits | $448,396,000 | $448,396,000 | $295,815,000 | ||||
Number of former vested employees | 6,200 | 6,200 | 11,000 | ||||
Percent of former vested employees offered accepted the lump sum distribution offer | 60.00% | ||||||
Payments for postemployment benefits | 224,000,000 | ||||||
Pension settlement charges | 12,564,000 | 2,820,000 | 0 | ||||
Settlement percentage of pension obligation | 12.00% | 12.00% | |||||
Pension lump sum settlement expense | 97,231,000 | 0 | 0 | ||||
U.S. pension plan assets percentage of total pension plan assets | 75.00% | ||||||
Required pension contributions to our pension plans | 39,000,000 | ||||||
MEP contribution percentage | 5.00% | ||||||
Deferred compensation | 40,302,000 | 40,302,000 | 34,401,000 | ||||
Non-qualified supplemental pension plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Pension benefits | 51,000,000 | 51,000,000 | 44,000,000 | ||||
Pension Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Pension settlement charges | 259,319,000 | 0 | |||||
Net actuarial loss to be recognized | 32,000,000 | ||||||
Deferred compensation | 40,000,000 | 40,000,000 | 34,000,000 | ||||
Other Postretirement Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Maximum age limit of qualified retirees for health care benefits | 65 | ||||||
Assumed change in healthcare cost trend rates in each year | 1.00% | ||||||
Modified Age Limit Of Qualified Retirees For Health Care Benefits | 52 | ||||||
Modified years of service required for Qualified Retirees For Health Care Benefits | 12 | ||||||
Defined Contribution Savings Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Expense related to defined contribution savings plans | 35,000,000 | 35,000,000 | 33,000,000 | ||||
Rabbi Trusts [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Assets held in trust | 41,000,000 | 41,000,000 | 35,000,000 | ||||
Value of common stock issued in trust | 2,000,000 | 2,000,000 | 2,000,000 | ||||
Scenario, Forecast [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Prior service credit | ($2,000,000) |
Environmental_Matters_Details
Environmental Matters (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
DisposalSite | |||
Environmental Remediation Obligations [Abstract] | |||
Number of disposal sites | 19 | ||
Environmental expenses | $7,000,000 | $9,000,000 | $7,000,000 |
Environmental liabilities | $11,879,000 | $13,063,000 |
Other_Items_Impacting_Comparab2
Other Items Impacting Comparability (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ||||
Defined benefit plan, lump sum settlement charge, pre tax | ($97,231) | $0 | $0 | |
Pension settlement charges | -12,564 | -2,820 | 0 | |
Restructuring and other (charges) recoveries, net and other items | -2,387 | 470 | -8,070 | |
Acquisition-related tax adjustment | -1,808 | |||
Acquisition transaction costs | -566 | -368 | ||
Consulting fees | -400 | |||
Foreign currency translation benefit | 0 | -1,904 | 0 | |
Restructuring and other (charges) recoveries, net and other items | -114,956 | 154 | -16,668 | |
Superstorm Sandy [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Superstorm Sandy vehicle-related recoveries (losses) | 600 | -8,230 | ||
Losses for property damage to vehicles owned by full service lease customers | 8,230 | |||
Foreign Currency Gain (Loss) [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Foreign currency translation benefit | ($1,904) |
Other_Matters_Details
Other Matters (Details) (Brazil state operating tax [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Brazil state operating tax [Member] | |
Loss Contingencies [Line Items] | |
Tax amounts assessed but not reversed | $5 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition [Line Items] | |||
Interest paid | $139,595,000 | $132,946,000 | $126,764,000 |
Income taxes paid | 11,382,000 | 13,063,000 | 11,613,000 |
Changes in accounts payable related to purchases of revenue earning equipment | 39,071,000 | 43,745,000 | 27,528,000 |
Operating and revenue earning equipment acquired under capital leases | 7,972,000 | 5,698,000 | 20,670,000 |
Fair value of debt assumed on acquisition | 0 | 0 | 379,000 |
Capital leases assumed | 20,000,000 | ||
Payments to acquire businesses | -9,972,000 | -1,858,000 | -5,113,000 |
Payments made related to prior year acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Payments to acquire businesses | ($1,858,000) |
Miscellaneous_Income_Net_Detai
Miscellaneous Income, Net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expenses [Abstract] | |||
Contract settlement | $3,014 | $0 | $0 |
Gains on sales of operating property and equipment | 2,909 | 1,020 | 4,456 |
Business interruption insurance recoveries | 808 | 2,743 | 1,991 |
Foreign currency translation benefit | 0 | 1,904 | 0 |
Rabbi trust investment (expense) income | 2,726 | 4,475 | 1,497 |
Other, net | 4,156 | 5,230 | 3,783 |
Total | $13,613 | $15,372 | $11,727 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | |||||||||||
Revenue | $1,656,316 | $1,687,150 | $1,684,571 | $1,610,737 | $1,617,729 | $1,634,540 | $1,603,999 | $1,563,017 | $6,638,774 | $6,419,285 | $6,256,967 |
EBT: | |||||||||||
Earnings from continuing operations before income taxes | 338,549 | 368,895 | 303,117 | ||||||||
Restructuring and other (charges) recoveries, net and other items | -2,387 | 470 | -8,070 | ||||||||
Operating Segments [Member] | |||||||||||
EBT: | |||||||||||
Earnings from continuing operations before income taxes | 515,013 | 438,519 | 393,556 | ||||||||
Unallocated Central Support Services | -51,740 | -45,493 | -42,348 | ||||||||
Non-operating pension costs | -9,768 | -24,285 | -31,423 | ||||||||
Restructuring and other (charges) recoveries, net and other items | -114,956 | 154 | -16,668 | ||||||||
Intersegment Eliminations [Member] | |||||||||||
Revenue: | |||||||||||
Revenue | -478,133 | -458,464 | -428,944 | ||||||||
EBT: | |||||||||||
Earnings from continuing operations before income taxes | -41,361 | -35,489 | -29,265 | ||||||||
Fleet Management Solutions [Member] | |||||||||||
Revenue: | |||||||||||
Revenue | 4,655,758 | 4,494,686 | 4,405,325 | ||||||||
EBT: | |||||||||||
Restructuring and other (charges) recoveries, net and other items | -515 | 470 | -6,448 | ||||||||
Fleet Management Solutions [Member] | Operating Segments [Member] | |||||||||||
Revenue: | |||||||||||
Revenue | 4,177,625 | 4,036,222 | 3,976,381 | ||||||||
EBT: | |||||||||||
Earnings from continuing operations before income taxes | 434,018 | 344,049 | 307,628 | ||||||||
Fleet Management Solutions [Member] | Operating Segments [Member] | Full service lease [Member] | |||||||||||
Revenue: | |||||||||||
Revenue | 2,102,703 | 2,016,570 | 1,956,812 | ||||||||
Fleet Management Solutions [Member] | Operating Segments [Member] | Commercial rental [Member] | |||||||||||
Revenue: | |||||||||||
Revenue | 836,719 | 753,456 | 738,564 | ||||||||
Fleet Management Solutions [Member] | Operating Segments [Member] | Full service lease and commercial rental [Member] | |||||||||||
Revenue: | |||||||||||
Revenue | 2,939,422 | 2,770,026 | 2,695,376 | ||||||||
Fleet Management Solutions [Member] | Operating Segments [Member] | Contract maintenance [Member] | |||||||||||
Revenue: | |||||||||||
Revenue | 182,411 | 178,001 | 184,149 | ||||||||
Fleet Management Solutions [Member] | Operating Segments [Member] | Contract-related maintenance [Member] | |||||||||||
Revenue: | |||||||||||
Revenue | 196,841 | 186,580 | 170,323 | ||||||||
Fleet Management Solutions [Member] | Operating Segments [Member] | Other Services [Member] | |||||||||||
Revenue: | |||||||||||
Revenue | 71,064 | 72,029 | 71,955 | ||||||||
Fleet Management Solutions [Member] | Operating Segments [Member] | Fuel services revenue [Member] | |||||||||||
Revenue: | |||||||||||
Revenue | 787,887 | 829,586 | 854,578 | ||||||||
Fleet Management Solutions [Member] | Intersegment Eliminations [Member] | |||||||||||
Revenue: | |||||||||||
Revenue | 478,133 | 458,464 | 428,944 | ||||||||
Supply Chain Solutions [Member] | |||||||||||
Revenue: | |||||||||||
Revenue | 2,461,149 | 2,383,063 | 2,280,586 | ||||||||
EBT: | |||||||||||
Restructuring and other (charges) recoveries, net and other items | -951 | 0 | -1,346 | ||||||||
Supply Chain Solutions [Member] | Operating Segments [Member] | |||||||||||
EBT: | |||||||||||
Earnings from continuing operations before income taxes | $122,356 | $129,959 | $115,193 |
Segment_Reporting_Details_1
Segment Reporting (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Share-based compensation expense | $20,905 | $19,310 | $18,864 |
Depreciation expense | 1,040,259 | 957,141 | 939,677 |
Gains on vehicles sales, net | -126,824 | -96,175 | -89,108 |
Defined benefit plan, lump sum settlement charge, pre tax | 97,231 | 0 | 0 |
Amortization expense and other non-cash charges, net | 47,263 | 56,389 | 49,209 |
Interest expense (income) | 142,075 | 137,196 | 140,557 |
Capital expenditures paid | 2,259,164 | 2,140,464 | 2,133,235 |
Total assets | 9,675,986 | 9,103,782 | 8,318,979 |
Operating Segments [Member] | Fleet Management Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation expense | 4,895 | 4,979 | 5,359 |
Depreciation expense | 1,011,227 | 926,724 | 910,352 |
Gains on vehicles sales, net | -126,410 | -96,011 | -89,075 |
Defined benefit plan, lump sum settlement charge, pre tax | 76,239 | ||
Amortization expense and other non-cash charges, net | 19,936 | 19,071 | 15,567 |
Interest expense (income) | 144,583 | 139,288 | 140,747 |
Capital expenditures paid | 2,166,319 | 2,092,544 | 2,090,443 |
Total assets | 8,818,816 | 8,309,149 | 7,556,509 |
Operating Segments [Member] | Supply Chain Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation expense | 4,381 | 4,934 | 4,433 |
Depreciation expense | 28,847 | 29,560 | 28,275 |
Gains on vehicles sales, net | -414 | -164 | -33 |
Defined benefit plan, lump sum settlement charge, pre tax | 6,612 | ||
Amortization expense and other non-cash charges, net | 1,825 | 3,640 | 2,768 |
Interest expense (income) | -2,327 | -1,864 | 11 |
Capital expenditures paid | 22,824 | 22,677 | 19,278 |
Total assets | 898,196 | 869,074 | 807,935 |
Central Support Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation expense | 11,629 | 9,397 | 9,072 |
Depreciation expense | 185 | 857 | 1,050 |
Gains on vehicles sales, net | 0 | 0 | 0 |
Defined benefit plan, lump sum settlement charge, pre tax | 14,380 | ||
Amortization expense and other non-cash charges, net | 25,502 | 33,678 | 30,874 |
Interest expense (income) | -181 | -228 | -201 |
Capital expenditures paid | 70,021 | 25,243 | 23,514 |
Total assets | 198,734 | 160,249 | 144,355 |
Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation expense | 0 | 0 | 0 |
Depreciation expense | 0 | 0 | 0 |
Gains on vehicles sales, net | 0 | 0 | 0 |
Defined benefit plan, lump sum settlement charge, pre tax | 0 | ||
Amortization expense and other non-cash charges, net | 0 | 0 | 0 |
Interest expense (income) | 0 | 0 | 0 |
Capital expenditures paid | 0 | 0 | 0 |
Total assets | ($239,760) | ($234,690) | ($189,820) |
Segment_Reporting_Details_2
Segment Reporting (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $1,656,316 | $1,687,150 | $1,684,571 | $1,610,737 | $1,617,729 | $1,634,540 | $1,603,999 | $1,563,017 | $6,638,774 | $6,419,285 | $6,256,967 |
Long-lived assets | 7,694,042 | 7,124,663 | 7,694,042 | 7,124,663 | 6,379,461 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 5,614,037 | 5,411,376 | 5,231,899 | ||||||||
Long-lived assets | 6,583,508 | 5,996,646 | 6,583,508 | 5,996,646 | 5,261,622 | ||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 435,280 | 455,440 | 477,495 | ||||||||
Long-lived assets | 530,316 | 529,880 | 530,316 | 529,880 | 557,351 | ||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 400,853 | 372,209 | 384,105 | ||||||||
Long-lived assets | 553,467 | 568,850 | 553,467 | 568,850 | 534,728 | ||||||
Mexico [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 158,481 | 161,279 | 143,282 | ||||||||
Long-lived assets | 26,230 | 29,008 | 26,230 | 29,008 | 24,973 | ||||||
Asia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 30,123 | 18,981 | 20,186 | ||||||||
Long-lived assets | 521 | 279 | 521 | 279 | 787 | ||||||
Foreign [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 1,024,737 | 1,007,909 | 1,025,068 | ||||||||
Long-lived assets | $1,110,534 | $1,128,017 | $1,110,534 | $1,128,017 | $1,117,839 |
Segment_Reporting_Details_Text
Segment Reporting (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Depreciation expense | $1,040,259 | $957,141 | $939,677 |
Acquisition payments | 9,972 | 1,858 | 5,113 |
Central support service assets depreciation expense allocated to other business segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | $21,000 | $14,000 | $12,000 |
Automotive industry [Member] | Supply Chain Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of total revenue | 27.00% | 29.00% | 30.00% |
Quarterly_Information_Unaudite2
Quarterly Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
QUARTERLY INFORMATION | |||||||||||
Revenue | $1,656,316 | $1,687,150 | $1,684,571 | $1,610,737 | $1,617,729 | $1,634,540 | $1,603,999 | $1,563,017 | $6,638,774 | $6,419,285 | $6,256,967 |
Earnings from Continuing Operations | 11,700 | 83,967 | 75,694 | 49,098 | 65,944 | 73,875 | 62,575 | 40,802 | 220,459 | 243,196 | 200,899 |
Net Earnings | $11,296 | $83,689 | $75,358 | $48,232 | $64,607 | $71,067 | $62,194 | $39,924 | $218,575 | $237,792 | $209,979 |
Earnings from Continuing Operations per Common Share | |||||||||||
Earnings from continuing operations per common share — Basic | $0.22 | $1.60 | $1.43 | $0.93 | $1.25 | $1.41 | $1.21 | $0.79 | $4.18 | $4.67 | $3.93 |
Earnings from continuing operations per common share — Diluted | $0.22 | $1.58 | $1.42 | $0.92 | $1.24 | $1.40 | $1.19 | $0.79 | $4.14 | $4.63 | $3.91 |
Net Earnings per Common Share | |||||||||||
Basic (USD per share) | $0.21 | $1.59 | $1.43 | $0.91 | $1.23 | $1.36 | $1.20 | $0.77 | $4.14 | $4.57 | $4.11 |
Diluted (USD per share) | $0.21 | $1.57 | $1.41 | $0.90 | $1.22 | $1.35 | $1.19 | $0.77 | $4.11 | $4.53 | $4.09 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Benefit (charge) within operating expense | $14,000,000 | $5,000,000 | $1,000,000 |
Accounts receivable allowance [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 16,955,000 | 15,429,000 | 14,489,000 |
Charged to Earnings | 7,086,000 | 7,561,000 | 10,478,000 |
Transferred from (to) Other Accounts | 0 | 0 | 0 |
Deductions | -7,653,000 | -6,035,000 | -9,538,000 |
Balance at End of Period | 16,388,000 | 16,955,000 | 15,429,000 |
Direct finance lease allowance [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 501,000 | 703,000 | 903,000 |
Charged to Earnings | 47,000 | 205,000 | 812,000 |
Transferred from (to) Other Accounts | 0 | 0 | 0 |
Deductions | -260,000 | -407,000 | -1,012,000 |
Balance at End of Period | 288,000 | 501,000 | 703,000 |
Self-insurance accruals [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 290,255,000 | 279,157,000 | 253,424,000 |
Charged to Earnings | 273,509,000 | 266,314,000 | 272,357,000 |
Transferred from (to) Other Accounts | 62,548,000 | 60,235,000 | 57,285,000 |
Deductions | -325,318,000 | -315,451,000 | -303,909,000 |
Balance at End of Period | 300,994,000 | 290,255,000 | 279,157,000 |
Reserve For Residual Value Guarantees [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 239,000 | 1,635,000 | 4,218,000 |
Charged to Earnings | -11,000 | -413,000 | 179,000 |
Transferred from (to) Other Accounts | 0 | 0 | 0 |
Deductions | 0 | -983,000 | -2,762,000 |
Balance at End of Period | 228,000 | 239,000 | 1,635,000 |
Valuation allowance on deferred tax assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 33,793,000 | 38,182,000 | 41,324,000 |
Charged to Earnings | -976,000 | 1,627,000 | 1,061,000 |
Transferred from (to) Other Accounts | 0 | 0 | 0 |
Deductions | -8,075,000 | -6,016,000 | -4,203,000 |
Balance at End of Period | $24,742,000 | $33,793,000 | $38,182,000 |