Document and Entity Information
Document and Entity Information - Jun. 30, 2015 - shares | Total |
Document and Entity Information [Abstract] | |
Entity Registrant Name | RYDER SYSTEM INC |
Entity Central Index Key | 85,961 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 53,374,025 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Income Statement [Abstract] | |||||
Lease and rental revenues | $ 779,046 | $ 733,763 | $ 1,508,070 | $ 1,423,445 | |
Services revenue | 737,170 | 741,427 | 1,430,874 | 1,451,126 | |
Fuel services revenue | 146,715 | 209,381 | 291,140 | 420,737 | |
Total revenues | 1,662,931 | 1,684,571 | 3,230,084 | 3,295,308 | |
Cost of lease and rental | 531,308 | 507,620 | 1,049,730 | 1,000,192 | |
Cost of services | 603,488 | 625,276 | 1,185,818 | 1,231,505 | |
Cost of fuel services | 142,176 | 203,613 | 278,465 | 410,818 | |
Other operating expenses | 32,834 | 31,007 | 67,578 | 67,652 | |
Selling, general and administrative expenses | 214,868 | 200,430 | 421,473 | 392,132 | |
Gains on vehicle sales, net | (33,237) | (34,365) | (62,816) | (63,183) | |
Interest expense | 39,075 | 35,729 | 75,877 | 71,267 | |
Miscellaneous income, net | (1,028) | (4,828) | (3,665) | (10,210) | |
Total expenses | 1,529,484 | 1,564,482 | 3,012,460 | 3,100,173 | |
Earnings from continuing operations before income taxes | 133,447 | 120,089 | 217,624 | 195,135 | |
Provision for income taxes | 47,530 | 44,368 | 78,381 | 70,288 | |
Earnings from continuing operations | 85,917 | 75,721 | 139,243 | 124,847 | |
Loss from discontinued operations, net of tax | (758) | (336) | (1,295) | (1,202) | |
Net earnings | $ 85,159 | $ 75,385 | $ 137,948 | $ 123,645 | |
Earnings (loss) per common share — Basic | |||||
Continuing operations | [1] | $ 1.62 | $ 1.43 | $ 2.63 | $ 2.36 |
Discontinued operations | [1] | (0.01) | 0 | (0.02) | (0.02) |
Net earnings | [1] | 1.61 | 1.43 | 2.61 | 2.34 |
Earnings (loss) per common share — Diluted | |||||
Continuing operations | [1] | 1.61 | 1.42 | 2.61 | 2.34 |
Discontinued operations | [1] | (0.01) | (0.01) | (0.03) | (0.02) |
Net earnings | [1] | 1.59 | 1.41 | 2.59 | 2.32 |
Cash dividends declared per common share (in dollars per share) | $ 0.37 | $ 0.34 | $ 0.74 | $ 0.68 | |
[1] | EPS amounts may not be additive due to rounding. |
Consolidated Condensed Stateme3
Consolidated Condensed Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 85,159 | $ 75,385 | $ 137,948 | $ 123,645 |
Other comprehensive income (loss): | ||||
Changes in cumulative translation adjustment and other | 27,027 | 26,273 | (30,345) | 11,681 |
Amortization of pension and postretirement items | 6,834 | 4,295 | 13,892 | 9,328 |
Income tax expense related to amortization of pension and postretirement items | (2,366) | (1,302) | (4,814) | (3,208) |
Amortization of pension and postretirement items, net of taxes | 4,468 | 2,993 | 9,078 | 6,120 |
Change in net actuarial loss | (8,526) | (3,144) | (8,526) | (3,144) |
Income tax benefit related to change in net actuarial loss | 3,205 | 1,096 | 3,205 | 1,096 |
Change in net actuarial loss, net of taxes | (5,321) | (2,048) | (5,321) | (2,048) |
Other comprehensive income (loss), net of taxes | 26,174 | 27,218 | (26,588) | 15,753 |
Comprehensive income | $ 111,333 | $ 102,603 | $ 111,360 | $ 139,398 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 73,353 | $ 50,092 |
Receivables, net of allowance of $17,180 and $16,388, respectively | 831,441 | 794,864 |
Inventories | 64,684 | 66,007 |
Prepaid expenses and other current assets | 166,438 | 165,234 |
Total current assets | 1,135,916 | 1,076,197 |
Revenue earning equipment, net of accumulated depreciation of $3,811,697 and $3,689,016 respectively | 7,854,037 | 7,201,886 |
Operating property and equipment, net of accumulated depreciation of $1,068,779 and $1,035,028, respectively | 707,886 | 699,594 |
Goodwill | 392,260 | 393,029 |
Intangible assets | 62,874 | 66,619 |
Direct financing leases and other assets | 485,291 | 446,099 |
Total assets | 10,638,264 | 9,883,424 |
Current liabilities: | ||
Short-term debt and current portion of long-term debt | 347,817 | 36,284 |
Accounts payable | 652,193 | 560,852 |
Accrued expenses and other current liabilities | 523,722 | 513,679 |
Total current liabilities | 1,523,732 | 1,110,815 |
Long-term debt | 4,869,208 | 4,694,335 |
Other non-current liabilities | 799,415 | 783,342 |
Deferred income taxes | 1,532,470 | 1,475,845 |
Total liabilities | 8,724,825 | 8,064,337 |
Shareholders’ equity: | ||
Preferred stock of no par value per share — authorized, 3,800,917; none outstanding, June 30, 2015 or December 31, 2014 | 0 | 0 |
Common stock of $0.50 par value per share — authorized, 400,000,000; outstanding, June 30, 2015 — 53,374,025; December 31, 2014 — 53,039,688 | 26,687 | 26,520 |
Additional paid-in capital | 989,563 | 962,328 |
Retained earnings | 1,544,047 | 1,450,509 |
Accumulated other comprehensive loss | (646,858) | (620,270) |
Total shareholders’ equity | 1,913,439 | 1,819,087 |
Total liabilities and shareholders’ equity | $ 10,638,264 | $ 9,883,424 |
Consolidated Condensed Balance5
Consolidated Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets: | ||
Allowance for doubtful accounts, current | $ 17,180 | $ 16,388 |
Revenue earning equipment, accumulated depreciation | 3,811,697 | 3,689,016 |
Operating property and equipment, accumulated depreciation | $ 1,068,779 | $ 1,035,028 |
Shareholders’ equity: | ||
Common stock, par value | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares outstanding | 53,374,025 | 53,039,688 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 3,800,917 | 3,800,917 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Condensed Stateme6
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities from continuing operations: | ||
Net earnings | $ 137,948 | $ 123,645 |
Less: Loss from discontinued operations, net of tax | (1,295) | (1,202) |
Earnings from continuing operations | 139,243 | 124,847 |
Depreciation expense | 546,699 | 512,109 |
Gains on vehicle sales, net | (62,816) | (63,183) |
Share-based compensation expense | 11,169 | 9,989 |
Amortization expense and other non-cash charges, net | 28,329 | 25,727 |
Deferred income tax expense | 67,592 | 59,987 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Receivables | (33,535) | (40,579) |
Inventories | 1,006 | (1,178) |
Prepaid expenses and other assets | (25,555) | (19,163) |
Accounts payable | (30,439) | 1,771 |
Accrued expenses and other non-current liabilities | 17,005 | (67,439) |
Net cash provided by operating activities from continuing operations | 658,698 | 542,888 |
Cash flows from financing activities from continuing operations: | ||
Net change in commercial paper borrowings | 34,750 | 21,377 |
Debt proceeds | 930,090 | 765,713 |
Debt repaid | (486,103) | (277,636) |
Dividends on common stock | (39,690) | (35,915) |
Common stock issued | 17,129 | 34,129 |
Common stock repurchased | (6,141) | (79,488) |
Excess tax benefits from share-based compensation | 710 | 411 |
Debt issuance costs | (5,225) | (5,026) |
Net cash provided by financing activities from continuing operations | 445,520 | 423,565 |
Cash flows from investing activities from continuing operations: | ||
Purchases of property and revenue earning equipment | (1,329,218) | (1,255,222) |
Sales of revenue earning equipment | 211,153 | 274,394 |
Sale and leaseback of revenue earning equipment | 0 | |
Sales of operating property and equipment | 641 | 2,780 |
Acquisitions | 0 | (1,649) |
Collections on direct finance leases | 33,912 | 32,355 |
Changes in restricted cash | 4,849 | 8,774 |
Other | 0 | (1,250) |
Net cash used in investing activities from continuing operations | (1,078,663) | (939,818) |
Effect of exchange rate changes on cash | (1,198) | 48 |
Increase in cash and cash equivalents from continuing operations | 24,357 | 26,683 |
Decrease in cash and cash equivalents from discontinued operations | (1,096) | (1,357) |
Increase in cash and cash equivalents | 23,261 | 25,326 |
Cash and cash equivalents at beginning of period | 50,092 | 61,562 |
Cash and cash equivalents at end of period | $ 73,353 | $ 86,888 |
Consolidated Condensed Stateme7
Consolidated Condensed Statement of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | |
Beginning balance at Dec. 31, 2013 | $ 1,896,561 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | 36,400 | ||||||
Ending balance at Dec. 31, 2014 | $ 1,819,087 | $ 0 | $ 26,520 | $ 962,328 | $ 1,450,509 | $ (620,270) | |
Ending balance, shares at Dec. 31, 2014 | 53,039,688 | 53,039,688 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | $ 100 | ||||||
Ending balance at Mar. 31, 2015 | 1,811,031 | ||||||
Beginning balance at Dec. 31, 2014 | $ 1,819,087 | 0 | $ 26,520 | 962,328 | 1,450,509 | (620,270) | |
Beginning balance, shares at Dec. 31, 2014 | 53,039,688 | 53,039,688 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | $ 111,360 | 137,948 | (26,588) | ||||
Common stock dividends declared — $0.74 per share | (39,519) | (39,519) | |||||
Common stock issued under employee stock option and stock purchase plans | [1] | 17,052 | $ 201 | 16,851 | |||
Common stock issued under employee stock option and stock purchase plans, shares | [1] | 402,573 | |||||
Benefit plan stock sales | [2] | 77 | $ 1 | 76 | |||
Benefit plan stock sales, shares | [2] | 871 | |||||
Common stock repurchases | (6,141) | $ (35) | (1,215) | (4,891) | |||
Common stock repurchases, shares | (69,107) | ||||||
Share-based compensation | 11,169 | 11,169 | 0 | ||||
Tax benefits from share-based compensation | 354 | 354 | |||||
Ending balance at Jun. 30, 2015 | $ 1,913,439 | 0 | $ 26,687 | 989,563 | 1,544,047 | (646,858) | |
Ending balance, shares at Jun. 30, 2015 | 53,374,025 | 53,374,025 | |||||
Beginning balance at Mar. 31, 2015 | $ 1,811,031 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | 111,333 | ||||||
Ending balance at Jun. 30, 2015 | $ 1,913,439 | $ 0 | $ 26,687 | $ 989,563 | $ 1,544,047 | $ (646,858) | |
Ending balance, shares at Jun. 30, 2015 | 53,374,025 | 53,374,025 | |||||
[1] | Net of common shares delivered as payment for the exercise price or to satisfy the option 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 Condensed Stateme8
Consolidated Condensed Statement of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.37 | $ 0.34 | $ 0.74 | $ 0.68 |
General
General | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
INTERIM FINANCIAL STATEMENTS | Interim Financial Statements The accompanying unaudited Consolidated Condensed 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) required to be consolidated in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The accompanying unaudited Consolidated Condensed Financial Statements have been prepared in accordance with the accounting policies described in our 2014 Annual Report on Form 10-K and should be read in conjunction with the Consolidated Financial Statements and notes thereto. In the opinion of management, all adjustments (consisting of normal recurring accruals and items referenced under the "Revision of Prior Period Financial Statements") considered necessary for a fair statement have been included and the disclosures herein are adequate. The operating results for interim periods are unaudited and are not necessarily indicative of the results that can be expected for a full year. During the first quarter of 2015, our management structure changed within the supply chain business. We created the role of President of Dedicated Transportation Solutions (DTS) for the dedicated product offering which was previously within Supply Chain Solutions (SCS). We are now reporting our financial performance as follows: (1) Fleet Management Solutions (FMS), which provides full service leasing, commercial rental, contract maintenance, and contract-related maintenance of trucks, tractors and trailers to customers principally in the U.S., Canada and the U.K.; (2) DTS, which provides vehicles and drivers as part of a dedicated transportation solution in the U.S.; and (3) SCS, which provides comprehensive supply chain solutions including distribution and transportation services in North America and Asia. Dedicated services provided as part of an integrated, multi-service, supply chain solution are reported in the SCS business segment. Prior period amounts have been recast to conform to the new presentation. This change impacted Note (F), "Goodwill," and Note (Q), "Segment Reporting," with no impact on consolidated revenues, net income or cash flows. Revision of Prior Period Financial Statements The Company periodically enters into sale and leaseback transactions to lower the total cost of funding our operations, to diversify funding among different classes of investors and among different types of funding instruments. Historically, these sale-leaseback transactions resulted in a reduction of revenue earning equipment and debt on the balance sheet, as proceeds from the sale of revenue earning equipment were primarily used to repay debt. The related leasebacks were historically treated as off-balance sheet operating leases and were included in our reported total obligations leverage ratios. In April of 2015, we completed a financing transaction of revenue earning equipment with third parties not deemed to be variable interest entities. The revenue earning equipment subject to this transaction was originally owned and titled in a titling trust which is a wholly-owned, consolidated subsidiary of Ryder. As part of the sale-leaseback transaction, the titling trust created special units of beneficial interests (SUBIs) for the specific revenue earning equipment. The SUBIs were then sold to third parties and leased back to Ryder. In conjunction with this transaction, we reviewed and evaluated the structure to determine whether it qualified for off-balance sheet treatment. We concluded the April 2015 transaction should be treated as an issuance of financial interests that does not qualify for deconsolidation. As a result, off-balance sheet treatment is not appropriate for the current, as well as similar prior year transactions. We have evaluated the materiality of this revision, quantitatively and qualitatively, and concluded it was not material to any of our previously issued consolidated financial statements and correction as an out of period adjustment in the quarter ended June 30, 2015 would not be material. However, we have elected to revise previously issued financial statements to avoid inconsistencies in our financial statements. Adjustments may not be additive and may have minor differences within the tables due to rounding. The effects of this revision on our Consolidated Statements of Earnings were as follows (in millions): Year ended December 31, 2014 Year ended December 31, 2013 Year ended December 31, 2012 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Cost of lease and rental $ 2,039.3 (2.4 ) 2,036.9 $ 1,928.9 (3.4 ) 1,925.5 $ 1,902.8 (2.4 ) 1,900.4 Interest expense 142.1 2.6 144.7 137.2 3.3 140.5 140.6 2.7 143.3 Earnings from continuing operations before income taxes 338.5 (0.2 ) 338.3 368.9 0.1 369.0 303.1 (0.3 ) 302.8 Provision for income taxes 118.1 (0.1 ) 118.0 125.7 — 125.7 102.2 (0.1 ) 102.1 Earnings from continuing operations 220.5 (0.3 ) 220.2 243.2 0.1 243.3 200.9 (0.2 ) 200.7 Net earnings 218.6 (0.3 ) 218.3 237.8 0.1 237.9 210.0 (0.3 ) 209.7 Earnings (loss) per common share — Diluted, Net Earnings 4.14 — 4.14 4.63 — 4.63 3.91 (0.01 ) 3.90 Three months ended March 31, 2015 Three months ended March 31, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Cost of lease and rental $ 519.2 (0.8 ) 518.4 $ 493.0 (0.4 ) 492.6 Interest expense 35.8 1.0 36.8 35.1 0.4 35.5 Earnings from continuing operations before income taxes 84.4 (0.2 ) 84.2 75.0 — 75.0 Earnings from continuing operations 53.5 (0.2 ) 53.3 49.1 — 49.1 Net earnings 52.9 (0.1 ) 52.8 48.2 0.1 48.3 Three months ended June 30, 2014 Six months ended June 30, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Cost of lease and rental $ 508.1 (0.5 ) 507.6 $ 1,001.1 (0.9 ) 1,000.2 Interest expense 35.3 0.4 35.7 70.4 0.9 71.3 Earnings from continuing operations before income taxes 120.0 0.1 120.1 195.0 0.1 195.1 Three months ended September 30, 2014 Nine months ended September 30, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Cost of lease and rental $ 522.9 (0.7 ) 522.2 $ 1,524.0 (1.6 ) 1,522.4 Interest expense 35.9 0.8 36.7 106.3 1.6 107.9 Earnings from continuing operations before income taxes 129.7 (0.1 ) 129.6 324.8 (0.1 ) 324.7 Provision for income taxes 45.8 (0.1 ) 45.7 116.0 — 116.0 Earnings from continuing operations 84.0 (0.1 ) 83.9 208.8 (0.1 ) 208.7 Net earnings 83.7 (0.1 ) 83.6 207.3 — 207.3 The effects of this revision on our Consolidated Statements of Comprehensive Income were as follows (in millions): Comprehensive Income As Previously Reported Adjustment As Revised Year ended December 31, 2014 $ 36.6 (0.2 ) 36.4 Year ended December 31, 2013 387.2 0.1 387.3 Year ended December 31, 2012 189.5 (0.2 ) 189.3 Three months ended March 31, 2015 $ 0.2 (0.1 ) 0.1 Three months ended September 30, 2014 39.8 (0.1 ) 39.7 Nine months ended September 30, 2014 179.1 — 179.1 Three months ended June 30, 2014 102.6 — 102.6 Six months ended June 30, 2014 139.3 0.1 139.4 Three months ended March 31, 2014 36.8 — 36.8 The effects of this revision on our Consolidated Balance Sheets were as follows (in millions): March 31, 2015 December 31, 2014 December 31, 2013 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Revenue earning equipment, net $ 7,208.3 201.2 7,409.5 $ 6,994.4 207.4 7,201.9 $ 6,490.8 102.0 6,592.8 Total assets 9,906.8 201.2 10,108.0 9,676.0 207.4 9,883.4 9,103.8 102.0 9,205.8 Short-term debt and current portion of long-term debt 11.4 24.1 35.5 12.2 24.1 36.3 259.4 12.8 272.2 Accrued expenses and other current liabilities 489.6 (7.1 ) 482.5 520.5 (6.8 ) 513.7 496.3 (1.9 ) 494.4 Total current liabilities 1,126.5 16.9 1,143.4 1,093.6 17.2 1,110.8 1,231.1 10.9 1,242.0 Long-term debt 4,692.5 188.1 4,880.6 4,500.3 194.0 4,694.3 3,930.0 93.0 4,023.0 Other non-current liabilities 788.1 (3.2 ) 784.9 786.7 (3.4 ) 783.3 616.3 (1.6 ) 614.7 Deferred income taxes 1,488.1 (0.2 ) 1,487.9 1,476.0 (0.2 ) 1,475.8 1,429.6 — 1,429.6 Total liabilities 8,095.2 201.7 8,296.9 7,856.5 207.8 8,064.3 7,207.1 102.1 7,309.2 Retained earnings 1,479.2 (0.5 ) 1,478.7 1,450.9 (0.4 ) 1,450.5 1,390.8 (0.2 ) 1,390.6 Total shareholders’ equity 1,811.5 (0.5 ) 1,811.0 1,819.5 (0.4 ) 1,819.1 1,896.7 (0.1 ) 1,896.6 Total liabilities and shareholders’ equity 9,906.8 201.2 10,108.0 9,676.0 207.4 9,883.4 9,103.8 102.0 9,205.8 The effects of this revision on the individual line items within our Consolidated Statements of Cash Flows were as follows (in millions): Year ended December 31, 2014 Year ended December 31, 2013 Year ended December 31, 2012 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net earnings $ 218.6 (0.3 ) 218.3 $ 237.8 0.1 237.9 $ 210.0 (0.3 ) 209.7 Depreciation expense 1,040.3 17.6 1,057.8 957.1 26.5 983.6 939.7 22.4 962.1 Deferred income tax expense 104.8 — 104.7 113.6 — 113.6 87.1 (0.1 ) 87.0 Accrued expenses and other non-current liabilities (48.7 ) (4.4 ) (53.1 ) (66.6 ) 2.2 (64.4 ) (68.3 ) 4.1 (64.2 ) Net cash provided by operating activities from continuing operations 1,370.0 12.8 1,382.8 1,223.1 28.7 1,251.8 1,134.1 26.1 1,160.2 Debt proceeds 839.7 125.8 965.5 557.0 — 557.0 745.8 130.2 876.0 Debt repaid, including capital and financing lease obligations (280.7 ) (12.8 ) (293.5 ) (332.6 ) (46.6 ) (379.2 ) (283.9 ) (26.1 ) (310.0 ) Net cash provided by financing activities from continuing operations 198.7 113.0 311.7 393.6 (46.5 ) 347.1 333.8 104.1 437.9 Purchases of property and revenue earning equipment (2,259.2 ) — (2,259.2 ) (2,140.5 ) 17.9 (2,122.6 ) (2,133.2 ) — (2,133.2 ) Sale and leaseback of revenue earning equipment 125.8 (125.8 ) — — — — 130.2 (130.2 ) — Net cash used in investing activities from continuing operations (1,578.7 ) (125.8 ) (1,704.5 ) (1,621.7 ) 17.9 (1,603.8 ) (1,504.3 ) (130.2 ) (1,634.5 ) Three months ended March 31, 2015 Three months ended March 31, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net earnings $ 52.9 (0.1 ) 52.8 $ 48.2 0.1 48.3 Depreciation expense 262.4 6.2 268.6 248.8 3.1 251.9 Deferred income tax expense 26.7 (0.1 ) 26.6 21.7 — 21.7 Accrued expenses and other non-current liabilities (21.5 ) (0.1 ) (21.6 ) (29.9 ) (3.1 ) (33.0 ) Net cash provided by operating activities from continuing operations 277.9 6.0 283.8 237.7 — 237.7 Debt repaid, including capital and financing lease obligations (457.6 ) (6.0 ) (463.5 ) (252.8 ) — (252.8 ) Net cash provided by financing activities from continuing operations 184.8 (6.0 ) 178.9 215.2 — 215.2 Six months ended June 30, 2014 Nine months ended September 30, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net earnings $ 123.6 — 123.6 $ 207.3 — 207.3 Depreciation expense 506.0 6.1 512.1 770.1 11.3 781.4 Accrued expenses and other non-current liabilities (67.6 ) 0.2 (67.4 ) (41.5 ) (4.9 ) (46.4 ) Net cash provided by operating activities from continuing operations 536.5 6.4 542.9 974.7 6.3 981.0 Debt proceeds 765.7 — 765.7 769.9 125.8 895.7 Debt repaid, including capital and financing lease obligations (271.2 ) (6.4 ) (277.6 ) (278.4 ) (6.4 ) (284.8 ) Net cash provided by financing activities from continuing operations 430.0 (6.4 ) 423.6 213.1 119.4 332.5 Sale and leaseback of revenue earning equipment — — — 125.8 (125.8 ) — Net cash used in investing activities from continuing operations (939.8 ) — (939.8 ) (1,171.5 ) (125.8 ) (1,297.3 ) |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Inventory Valuation On July 22, 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-11, Simplifying the Measurement of Inventory , which applies to inventory that is measured using first-in, first-out or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, first-out. The update becomes effective January 1, 2017 and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. We are in the process of determining the effect of the standard on our consolidated financial position and results of operations. 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. The ASU will replace most existing revenue recognition guidance. The update was originally effective January 1, 2017. On July 9, 2015, the FASB issued a deferral of the update for one year, making the update effective January 1, 2018. Early application is permitted but not before January 1, 2017. The standard permits the use of either the modified retrospective or cumulative effect transition methods. We have not yet selected a transition method. We are in the process of determining the effect of the standard on our consolidated financial position and results of operations. Presentation of Debt Issuance Costs On April 7, 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires an entity to present debt issuance costs as a direct deduction from the carrying amount of the related debt liability on the balance sheet. The update requires retrospective application and represents a change in accounting principle. The update becomes effective January 1, 2016. Based on the balances as of June 30, 2015 , the adoption of this ASU will require us to reclassify $19.4 million of unamortized debt issuance costs from "Direct financing leases and other assets" to "Long-term debt." |
Share-Based Compensation Plans
Share-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS 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 but 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 grant date of the award until the date the shares underlying the award are delivered. The following table provides information on share-based compensation expense and income tax benefits recognized during the periods: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (In thousands) Stock option and stock purchase plans $ 1,956 2,241 $ 4,257 4,478 Nonvested stock 3,548 2,890 6,912 5,511 Share-based compensation expense 5,504 5,131 11,169 9,989 Income tax benefit (1,860 ) (1,713 ) (3,743 ) (3,389 ) Share-based compensation expense, net of tax $ 3,644 3,418 $ 7,426 6,600 The following table is a summary of compensation expense recognized for market-based cash awards in addition to the share-based compensation expense reported in the previous table: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (In thousands) Cash awards $ 281 $ 743 $ 464 $ 1,266 Total unrecognized pre-tax compensation expense related to all share-based compensation arrangements at June 30, 2015 was $30.1 million and is expected to be recognized over a weighted-average period of 2.0 years. The following table is a summary of the awards granted under the Plans during the periods presented: Six months ended June 30, 2015 2014 (In thousands) Stock options 362 405 Market-based restricted stock rights 19 22 Performance-based restricted stock rights 42 30 Time-vested restricted stock rights 80 158 Total 503 615 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
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: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (In thousands, except per share amounts) Earnings per share — Basic: Earnings from continuing operations $ 85,917 75,721 $ 139,243 124,847 Less: Distributed and undistributed earnings allocated to nonvested stock (246 ) (302 ) (393 ) (582 ) Earnings from continuing operations available to common shareholders — Basic $ 85,671 75,419 $ 138,850 124,265 Weighted average common shares outstanding — Basic 52,827 52,564 52,712 52,612 Earnings from continuing operations per common share — Basic $ 1.62 1.43 $ 2.63 2.36 Earnings per share — Diluted: Earnings from continuing operations $ 85,917 75,721 $ 139,243 124,847 Less: Distributed and undistributed earnings allocated to nonvested stock (244 ) (299 ) (390 ) (578 ) Earnings from continuing operations available to common shareholders — Diluted $ 85,673 75,422 $ 138,853 124,269 Weighted average common shares outstanding — Basic 52,827 52,564 52,712 52,612 Effect of dilutive equity awards 468 482 492 472 Weighted average common shares outstanding — Diluted 53,295 53,046 53,204 53,084 Earnings from continuing operations per common share — Diluted $ 1.61 1.42 $ 2.61 2.34 Anti-dilutive equity awards not included above 363 412 273 314 |
Revenue Earning Equipment
Revenue Earning Equipment | 6 Months Ended |
Jun. 30, 2015 | |
Revenue Earning Equipment [Abstract] | |
REVENUE EARNING EQUIPMENT | REVENUE EARNING EQUIPMENT June 30, 2015 December 31, 2014 Cost Accumulated Depreciation Net Book Value (1) Cost Accumulated Depreciation Net Book Value (1) (In thousands) Held for use: Full service lease $ 8,398,012 (2,677,023 ) 5,720,989 $ 8,008,122 (2,598,140 ) 5,409,982 Commercial rental 2,925,063 (898,319 ) 2,026,744 2,570,081 (864,543 ) 1,705,538 Held for sale 342,659 (236,355 ) 106,304 312,699 (226,333 ) 86,366 Total $ 11,665,734 (3,811,697 ) 7,854,037 $ 10,890,902 (3,689,016 ) 7,201,886 ———————————— (1) Revenue earning equipment, net includes vehicles acquired under capital leases of $48.0 million , less accumulated depreciation of $20.3 million , at June 30, 2015 , and $47.8 million , less accumulated depreciation of $22.5 million , at December 31, 2014 . Additionally, revenue earning equipment, net underlying asset-backed U.S. obligations was $346.1 million at June 30, 2015 ( $403.3 million cost, less $57.1 million of accumulated depreciation) and $207.4 million at December 31, 2014 ( $247.8 million cost, less $40.3 million of accumulated depreciation). See Note (A), General, Revision of Prior Period Financial Information for further information related to our evaluation of accounting for these transactions. At the end of 2014, we completed our annual review of residual values and useful lives of revenue earning equipment. Based on the results of our analysis, we adjusted the estimated residual values of certain classes of revenue earning equipment effective January 1, 2015. The change in estimated residual values and useful lives increased pre-tax earnings for the three and six months ended June 30, 2015 by approximately $10.0 million and $20.0 million , respectively. We lease revenue earning equipment to customers for periods typically ranging from three to seven years for trucks and tractors and up to ten years for trailers. 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. As of June 30, 2015 and December 31, 2014 , the net investment in direct financing and sales-type leases was $432.8 million and $417.0 million , respectively. 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 upon signing of a full service lease contract. 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 vehicles, based on their estimated fair values, which further mitigates our credit risk. As of June 30, 2015 and December 31, 2014 , the amount of direct financing lease receivables past due was not significant, and there were no impaired receivables. Accordingly, we do not believe there is a material risk of default with respect to the direct financing lease receivables. The allowance for credit losses was $0.3 million as of June 30, 2015 and December 31, 2014 . |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2015 | |
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 Dedicated Supply Total Balance at January 1, 2015: Goodwill $ 233,217 40,808 148,225 422,250 Accumulated impairment losses (10,322 ) — (18,899 ) (29,221 ) 222,895 40,808 129,326 393,029 Foreign currency translation adjustments (247 ) — (522 ) (769 ) Balance at June 30, 2015: Goodwill 232,970 40,808 147,703 421,481 Accumulated impairment losses (10,322 ) — (18,899 ) (29,221 ) $ 222,648 40,808 128,804 392,260 We assess goodwill for impairment on April 1st of each year or more often if deemed necessary. In the second quarter of 2015, we completed our annual goodwill impairment test. We performed quantitative tests on four of our reporting units and determined there was no impairment. We performed a qualitative test for one reporting unit, which considered individual factors such as macroeconomic conditions, changes in our industry and the markets in which we operate as well as our historical and expected future financial performance. After performing the qualitative assessment, we concluded it is more likely than not that fair value is greater than the carrying value and determined there was no impairment. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ACCRUED EXPENSES AND OTHER LIABILITIES June 30, 2015 December 31, 2014 Accrued Expenses Non-Current Liabilities Total Accrued Expenses Non-Current Liabilities Total (In thousands) Salaries and wages $ 94,846 — 94,846 $ 114,446 — 114,446 Deferred compensation 2,243 41,518 43,761 3,209 37,093 40,302 Pension benefits 3,687 457,170 460,857 3,739 444,657 448,396 Other postretirement benefits 2,097 25,904 28,001 2,112 26,889 29,001 Other employee benefits 7,681 16,910 24,591 7,172 19,276 26,448 Insurance obligations (1) 136,394 198,860 335,254 132,246 189,431 321,677 Environmental liabilities 3,728 7,152 10,880 3,877 8,002 11,879 Operating taxes 106,286 — 106,286 92,330 — 92,330 Income taxes 2,785 24,704 27,489 5,066 22,843 27,909 Interest 35,875 — 35,875 33,509 — 33,509 Deposits, mainly from customers 64,059 5,648 69,707 59,388 5,929 65,317 Deferred revenue 14,388 — 14,388 11,759 — 11,759 Acquisition holdbacks 6,061 — 6,061 3,817 2,187 6,004 Other 43,592 21,549 65,141 41,009 27,035 68,044 Total $ 523,722 799,415 1,323,137 $ 513,679 783,342 1,297,021 ———————————— (1) Insurance obligations are primarily comprised of self-insured claim liabilities. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Weighted-Average Interest Rate June 30, December 31, Maturities June 30, December 31, (In thousands) Short-term debt and current portion of long-term debt: Short-term debt 2.75% 1.30% 2015 $ 316 3,773 Current portion of long-term debt 347,501 32,511 Total short-term debt and current portion of long-term debt 347,817 36,284 Long-term debt: U.S. commercial paper (1) 0.43% 0.35% 2020 311,432 276,694 Global revolving credit facility 2.78% 1.60% 2020 40,908 11,190 Unsecured U.S. notes — Medium-term notes (1) 3.21% 3.29% 2015-2025 4,111,991 3,772,159 Unsecured U.S. obligations 1.50% 0.76% 2018 50,000 110,500 Unsecured foreign obligations 1.92% 2.01% 2015-2020 295,217 295,776 Asset-backed U.S. obligations (2) 1.79% 1.81% 2018-2022 362,075 218,137 Capital lease obligations 1.79% 1.73% 2015-2022 38,418 37,560 Total before fair market value adjustment 5,210,041 4,722,016 Fair market value adjustment on notes subject to hedging (3) 6,668 4,830 5,216,709 4,726,846 Current portion of long-term debt (347,501 ) (32,511 ) Long-term debt 4,869,208 4,694,335 Total debt $ 5,217,025 4,730,619 ———————————— (1) We had unamortized original issue discounts of $8.1 million and $7.9 million at June 30, 2015 and December 31, 2014 , respectively. (2) Asset-backed U.S. obligations of $362.1 million at June 30, 2015 and $218.1 million at December 31, 2014 are related to financing transactions involving revenue earning equipment. See Note (A), General, Revision of Prior Period Financial Information for further information related to our evaluation of accounting for these transactions. (3) The notional amount of executed interest rate swaps designated as fair value hedges was $600 million at both June 30, 2015 and December 31, 2014 . We maintain a $1.2 billion 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, Lloyds Bank Plc, U.S. Bank National Association and Wells Fargo Bank, N.A. The facility matures in January 2020. The agreement provides for annual facility fees which range from 7.5 basis points to 25 basis points based on Ryder's long-term credit ratings. The annual facility fee is currently 10 basis points , which applies to the total facility size of $1.2 billion . The 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 June 30, 2015 ). At our option, the interest rate on borrowings under the credit facility is based on LIBOR, prime, federal funds or local equivalent rates. 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 June 30, 2015 was 209% . At June 30, 2015 , there was $847.6 million available under the credit facility, net of outstanding commercial paper borrowings. 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 June 30, 2015 , we classified $311.4 million of short-term commercial paper and $338.4 million of the current portion of long-term debt as long-term debt. At December 31, 2014 , we classified $276.7 million of short-term commercial paper, $60.0 million of trade receivables borrowings and $698.5 million of the current portion of long-term debt as long-term debt. In May 2015, we issued $300 million of unsecured medium-term notes maturing in May 2020. The proceeds from the notes were used to reduce commercial paper borrowings 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. In April of 2015, we completed a financing transaction backed by a portion of our revenue earning equipment that resulted in $156.4 million of cash proceeds. The proceeds from this transaction were used to fund capital expenditures. We have provided end of term guarantees for the residual value of the revenue earning equipment in this transaction. The transaction along with the end of term residual value guarantees have been included in the "asset-backed U.S. obligations" line within the preceding table. 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 . If no event occurs that causes early termination, the 364 -day program will expire during October 2015. The program contains provisions restricting its availability in the event of a material adverse change to our business operations or the collectibility of the collateralized receivables. No amounts were outstanding under the program at June 30, 2015 . At December 31, 2014 , $60.0 million was outstanding under the program. Sales of receivables under this program are accounted for as secured borrowings based on our continuing involvement in the transferred assets. At June 30, 2015 and December 31, 2014 , we had letters of credit and surety bonds outstanding totaling $333.9 million and $334.3 million , respectively, which primarily guarantee the payment of insurance claims. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The assets and liabilities measured at fair value on a recurring basis consist primarily of interest rate swaps and investments held in Rabbi Trusts. These amounts as of June 30, 2015 are not material to our consolidated financial position and operations and have not changed significantly from the amounts reported as of December 31, 2014 . The following tables present our assets that are measured at fair value on a nonrecurring basis and considered a Level 3 fair value measurement: Fair Value Measurements at Total Losses (2) June 30, 2015 Three months ended June 30, 2015 Six months ended June 30, 2015 (In thousands) Assets held for sale: Revenue earning equipment: (1) Trucks $ 6,805 $ 1,515 $ 2,743 Tractors 7,389 1,081 1,908 Trailers 1,625 656 972 Total assets at fair value $ 15,819 $ 3,252 5,623 Fair Value Measurements at Total Losses (2) June 30, 2014 Three months ended June 30, 2014 Six months ended June 30, 2014 (In thousands) Assets held for sale: Revenue earning equipment: (1) Trucks $ 10,713 $ 1,572 $ 3,454 Tractors 6,057 662 2,294 Trailers 497 281 442 Total assets at fair value $ 17,267 $ 2,515 $ 6,190 ———————————— (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 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. Gains are recognized at the time of sale for vehicles with carrying amounts lower than fair value. Losses to reflect changes in fair value are presented within “Other operating expenses” in the Consolidated Condensed 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. Fair value of total debt (excluding capital lease and asset-backed U.S. obligations) at June 30, 2015 and December 31, 2014 was approximately $4.91 billion and $4.59 billion , respectively. For publicly-traded debt, estimates of fair value were 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 was estimated based on a model-driven approach using 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 Condensed Balance Sheets for “Cash and cash equivalents,” “Receivables, net” and “Accounts payable” approximate fair value because of the immediate or short-term maturities of these financial instruments. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES 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. Fair value was based on a model-driven income approach using the LIBOR rate at each interest payment date, which was observable at commonly quoted intervals for the full term of the swaps. Therefore, our interest rate swaps were classified within Level 2 of the fair value hierarchy. The fair value amounts of the interest rate swaps are reported in the Consolidated Condensed Balance Sheets within "Prepaid expenses and other current assets," "Direct financing leases and other assets," and "Other non-current liabilities." As of June 30, 2015 , these amounts are not material to our consolidated financial position and operations and have not changed significantly from the amounts reported at December 31, 2014 . The following table provides a detail of the swaps outstanding and the related hedged items as of June 30, 2015 : Maturity date Face value of medium-term notes Aggregate notional Fixed interest rate Weighted-average variable interest rate on hedged debt as of June 30, Issuance date 2015 2014 (Dollars in thousands) May 2011 June 2017 $350,000 $150,000 3.50% 1.49% 1.42% November 2013 November 2018 $300,000 $100,000 2.45% 1.23% 1.18% February 2014 June 2019 $350,000 $100,000 2.55% 1.15% 1.10% May 2014 September 2019 $400,000 $100,000 2.45% 0.90% 0.85% February 2015 March 2020 $400,000 $150,000 2.65% 1.14% — The amount of gains (losses) on interest rate swap agreements designated as fair value hedges and related hedged items are reported in the Consolidated Condensed Statements of Earnings within "Interest expense." 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. |
Share Repurchase Programs
Share Repurchase Programs | 6 Months Ended |
Jun. 30, 2015 | |
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 10, 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. Early in the first quarter of 2015, due to the increase in leverage, we temporarily paused anti-dilutive share repurchase activity. For the six months ended June 30, 2015 and 2014 , we repurchased and retired 69,107 shares and 1,027,072 shares, respectively, under the program at an aggregate cost of $6.1 million and $79.5 million , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following summary sets forth the components of accumulated other comprehensive loss, net of tax: Currency Translation Adjustments and Other Net Actuarial Loss (1) Prior Service Credit (1) Accumulated Other Comprehensive Loss (In thousands) December 31, 2014 $ (36,087 ) (585,941 ) 1,758 (620,270 ) Amortization — 9,790 (712 ) 9,078 Other current period change (30,345 ) (5,321 ) — (35,666 ) June 30, 2015 $ (66,432 ) (581,472 ) 1,046 (646,858 ) Currency Translation Adjustments and Other Net Actuarial Loss (1) Prior Service Credit (1) Accumulated Other Comprehensive Loss (In thousands) December 31, 2013 $ 35,875 (477,883 ) 3,760 (438,248 ) Amortization — 7,455 (1,335 ) 6,120 Other current period change 11,681 (2,048 ) — 9,633 June 30, 2014 $ 47,556 (472,476 ) 2,425 (422,495 ) _______________________ (1) These amounts are included in the computation of net periodic benefit cost. See Note (M), "Employee Benefit Plans," for further information. The loss from currency translation adjustments in the six months ended June 30, 2015 of $30.3 million was due primarily to the weakening of the Canadian Dollar and British Pound against the U.S. Dollar. The gain from currency translation adjustments in the six months ended June 30, 2014 of $11.7 million was due to the strengthening of the Canadian Dollar and British Pound compared to the U.S. Dollar. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Components of net periodic benefit cost/(credit) were as follows: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (In thousands) Pension Benefits Company-administered plans: Service cost $ 3,566 3,171 $ 7,193 6,594 Interest cost 22,048 25,135 43,935 50,696 Expected return on plan assets (25,021 ) (29,284 ) (49,921 ) (58,002 ) Amortization of: Net actuarial loss 7,664 5,579 15,472 11,814 Prior service credit (74 ) (435 ) (150 ) (893 ) 8,183 4,166 16,529 10,209 Union-administered plans 2,113 2,123 4,285 4,214 Net periodic benefit cost $ 10,296 6,289 $ 20,814 14,423 Company-administered plans: U.S. $ 8,599 4,499 $ 17,491 10,786 Non-U.S. (416 ) (333 ) (962 ) (577 ) 8,183 4,166 16,529 10,209 Union-administered plans 2,113 2,123 4,285 4,214 $ 10,296 6,289 $ 20,814 14,423 Postretirement Benefits Company-administered plans: Service cost $ 79 89 $ 190 224 Interest cost 275 348 559 713 Amortization of: Net actuarial gain (278 ) (234 ) (474 ) (363 ) Prior service credit (478 ) (615 ) (956 ) (1,230 ) Net periodic benefit credit $ (402 ) (412 ) $ (681 ) (656 ) Company-administered plans: U.S. $ (531 ) (524 ) $ (946 ) (921 ) Non-U.S. 129 112 265 265 $ (402 ) (412 ) $ (681 ) (656 ) During the six months ended June 30, 2015 , we contributed $7.9 million to our pension plans. In 2015 , we expect total contributions to our pension plans to be approximately $ 36 million . |
Other Items Impacting Comparabi
Other Items Impacting Comparability | 6 Months Ended |
Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | |
OTHER ITEMS IMPACTING COMPARABILITY | OTHER ITEMS IMPACTING COMPARABILITY Our primary measure of segment performance excludes certain items we do not believe are representative of the ongoing operations of the segment. We believe that excluding these items from our segment measure of performance allows for better comparison of results. During the three and six months ended June 30, 2015 , we incurred charges of $1.9 million and $3.8 million , respectively, related to professional fees associated with cost savings initiatives. These charges were recorded within "Selling, general and administrative expenses" in our Condensed Consolidated Statement of Earnings. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information was as follows: Six months ended June 30, 2015 2014 (In thousands) Interest paid $ 69,681 69,834 Income taxes paid 9,970 7,332 Changes in accounts payable related to purchases of revenue earning equipment 124,766 1,520 Operating and revenue earning equipment acquired under capital leases 5,847 2,371 During the six months ended June 30, 2014 , we paid $1.6 million related to acquisitions completed in prior years. |
Miscellaneous Income, Net
Miscellaneous Income, Net | 6 Months Ended |
Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | |
MISCELLANEOUS INCOME, NET | MISCELLANEOUS INCOME, NET Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (In thousands) Rabbi trust investment income $ 119 1,077 $ 1,186 1,577 Insurance proceeds — 756 314 756 Foreign currency translation 137 23 266 (383 ) Gain on sales of operating property and equipment 27 1,286 81 2,590 Contract settlement 41 — 56 2,908 Other, net 704 1,686 1,762 2,762 Total $ 1,028 4,828 $ 3,665 10,210 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Our operating segments are aggregated into reportable business segments based upon similar economic characteristics, products, services, customers and delivery methods. During the first quarter of 2015, our management structure changed within the supply chain business. We created the role of President of DTS for the dedicated product offering which previously was within SCS. We are now reporting our financial performance as follows: (1) FMS, which provides full service leasing, commercial rental, contract maintenance, and contract-related maintenance of trucks, tractors and trailers to customers principally in the U.S., Canada and the U.K.; (2) DTS, which provides vehicles and drivers as part of a dedicated transportation solution in the U.S; and (3) SCS, which provides comprehensive supply chain solutions including distribution and transportation services in North America and Asia. Dedicated services provided as part of an integrated, multi-service, supply chain solution are reported in the SCS business segment. Our primary measurement of segment financial performance, defined as “Earnings Before Tax” (EBT) from continuing operations, includes an allocation of Central Support Services (CSS) and excludes non-operating pension costs, restructuring and other charges, net and other items discussed in Note (N), "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, marketing 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. Our FMS segment leases revenue earning equipment and provides fuel, maintenance and other ancillary services to the DTS and SCS segments. 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 the business segment which served the customer and then eliminated (presented as “Eliminations”). The following tables set forth financial information for each of our business segments and provides a reconciliation between segment EBT and earnings from continuing operations before income taxes for the three and six months ended June 30, 2015 and 2014 . 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. FMS DTS SCS Eliminations Total (in thousands) For the three months ended June 30, 2015 Revenue from external customers $ 1,042,476 223,514 396,941 — 1,662,931 Inter-segment revenue 106,873 — — (106,873 ) — Total revenue $ 1,149,349 223,514 396,941 (106,873 ) 1,662,931 Segment EBT $ 122,452 12,435 27,699 (11,588 ) 150,998 Unallocated CSS (10,924 ) Non-operating pension costs (4,688 ) Restructuring and other charges, net and other items (1) (1,939 ) Earnings from continuing operations before income taxes $ 133,447 Segment capital expenditures paid (2) $ 761,542 646 3,570 — 765,758 Unallocated CSS 10,218 Capital expenditures paid $ 775,976 For the three months ended June 30, 2014 Revenue from external customers $ 1,056,992 234,014 393,565 — 1,684,571 Inter-segment revenue 124,230 — — (124,230 ) — Total revenue $ 1,181,222 234,014 393,565 (124,230 ) 1,684,571 Segment EBT $ 113,553 12,998 17,730 (10,523 ) 133,758 Unallocated CSS (12,125 ) Non-operating pension costs (1,544 ) Earnings from continuing operations before income taxes $ 120,089 Segment capital expenditures paid (2) $ 623,138 408 3,841 — 627,387 Unallocated CSS 49,113 Capital expenditures paid $ 676,500 ———————————— (1) See Note (N), "Other Items Impacting Comparability," for additional information. (2) Excludes revenue earning equipment acquired under capital leases. FMS DTS SCS Eliminations Total (in thousands) For the six months ended June 30, 2015 Revenue from external customers $ 2,025,916 436,173 767,995 — 3,230,084 Inter-segment revenue 210,583 — — (210,583 ) — Total revenue $ 2,236,499 436,173 767,995 (210,583 ) 3,230,084 Segment EBT $ 212,170 21,405 43,388 (23,122 ) 253,841 Unallocated CSS (22,866 ) Non-operating pension costs (9,571 ) Restructuring and other charges, net and other items (1) (3,780 ) Earnings from continuing operations before income taxes $ 217,624 Segment capital expenditures paid (2) $ 1,300,285 1,355 9,557 — 1,311,197 Unallocated CSS 18,021 Capital expenditures paid $ 1,329,218 For the six months ended June 30, 2014 Revenue from external customers $ 2,070,388 449,976 774,944 — 3,295,308 Inter-segment revenue 245,921 — — (245,921 ) — Total revenue $ 2,316,309 449,976 774,944 (245,921 ) 3,295,308 Segment EBT $ 190,586 21,684 30,828 (20,151 ) 222,947 Unallocated CSS (22,954 ) Non-operating pension costs (4,858 ) Earnings from continuing operations before income taxes $ 195,135 Segment capital expenditures paid (2), (3) $ 1,191,377 658 7,463 — 1,199,498 Unallocated CSS 55,724 Capital expenditures paid $ 1,255,222 (1) See Note (N), "Other Items Impacting Comparability," for additional information. (2) Excludes revenue earning equipment acquired under capital leases. (3) Excludes acquisition payments of $1.6 million during the six months ended June 30, 2014. |
Other Matters
Other Matters | 6 Months Ended |
Jun. 30, 2015 | |
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. |
General (Tables)
General (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of error corrections and prior period adjustments | e have elected to revise previously issued financial statements to avoid inconsistencies in our financial statements. Adjustments may not be additive and may have minor differences within the tables due to rounding. The effects of this revision on our Consolidated Statements of Earnings were as follows (in millions): Year ended December 31, 2014 Year ended December 31, 2013 Year ended December 31, 2012 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Cost of lease and rental $ 2,039.3 (2.4 ) 2,036.9 $ 1,928.9 (3.4 ) 1,925.5 $ 1,902.8 (2.4 ) 1,900.4 Interest expense 142.1 2.6 144.7 137.2 3.3 140.5 140.6 2.7 143.3 Earnings from continuing operations before income taxes 338.5 (0.2 ) 338.3 368.9 0.1 369.0 303.1 (0.3 ) 302.8 Provision for income taxes 118.1 (0.1 ) 118.0 125.7 — 125.7 102.2 (0.1 ) 102.1 Earnings from continuing operations 220.5 (0.3 ) 220.2 243.2 0.1 243.3 200.9 (0.2 ) 200.7 Net earnings 218.6 (0.3 ) 218.3 237.8 0.1 237.9 210.0 (0.3 ) 209.7 Earnings (loss) per common share — Diluted, Net Earnings 4.14 — 4.14 4.63 — 4.63 3.91 (0.01 ) 3.90 Three months ended March 31, 2015 Three months ended March 31, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Cost of lease and rental $ 519.2 (0.8 ) 518.4 $ 493.0 (0.4 ) 492.6 Interest expense 35.8 1.0 36.8 35.1 0.4 35.5 Earnings from continuing operations before income taxes 84.4 (0.2 ) 84.2 75.0 — 75.0 Earnings from continuing operations 53.5 (0.2 ) 53.3 49.1 — 49.1 Net earnings 52.9 (0.1 ) 52.8 48.2 0.1 48.3 Three months ended June 30, 2014 Six months ended June 30, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Cost of lease and rental $ 508.1 (0.5 ) 507.6 $ 1,001.1 (0.9 ) 1,000.2 Interest expense 35.3 0.4 35.7 70.4 0.9 71.3 Earnings from continuing operations before income taxes 120.0 0.1 120.1 195.0 0.1 195.1 Three months ended September 30, 2014 Nine months ended September 30, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Cost of lease and rental $ 522.9 (0.7 ) 522.2 $ 1,524.0 (1.6 ) 1,522.4 Interest expense 35.9 0.8 36.7 106.3 1.6 107.9 Earnings from continuing operations before income taxes 129.7 (0.1 ) 129.6 324.8 (0.1 ) 324.7 Provision for income taxes 45.8 (0.1 ) 45.7 116.0 — 116.0 Earnings from continuing operations 84.0 (0.1 ) 83.9 208.8 (0.1 ) 208.7 Net earnings 83.7 (0.1 ) 83.6 207.3 — 207.3 The effects of this revision on our Consolidated Statements of Comprehensive Income were as follows (in millions): Comprehensive Income As Previously Reported Adjustment As Revised Year ended December 31, 2014 $ 36.6 (0.2 ) 36.4 Year ended December 31, 2013 387.2 0.1 387.3 Year ended December 31, 2012 189.5 (0.2 ) 189.3 Three months ended March 31, 2015 $ 0.2 (0.1 ) 0.1 Three months ended September 30, 2014 39.8 (0.1 ) 39.7 Nine months ended September 30, 2014 179.1 — 179.1 Three months ended June 30, 2014 102.6 — 102.6 Six months ended June 30, 2014 139.3 0.1 139.4 Three months ended March 31, 2014 36.8 — 36.8 The effects of this revision on our Consolidated Balance Sheets were as follows (in millions): March 31, 2015 December 31, 2014 December 31, 2013 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Revenue earning equipment, net $ 7,208.3 201.2 7,409.5 $ 6,994.4 207.4 7,201.9 $ 6,490.8 102.0 6,592.8 Total assets 9,906.8 201.2 10,108.0 9,676.0 207.4 9,883.4 9,103.8 102.0 9,205.8 Short-term debt and current portion of long-term debt 11.4 24.1 35.5 12.2 24.1 36.3 259.4 12.8 272.2 Accrued expenses and other current liabilities 489.6 (7.1 ) 482.5 520.5 (6.8 ) 513.7 496.3 (1.9 ) 494.4 Total current liabilities 1,126.5 16.9 1,143.4 1,093.6 17.2 1,110.8 1,231.1 10.9 1,242.0 Long-term debt 4,692.5 188.1 4,880.6 4,500.3 194.0 4,694.3 3,930.0 93.0 4,023.0 Other non-current liabilities 788.1 (3.2 ) 784.9 786.7 (3.4 ) 783.3 616.3 (1.6 ) 614.7 Deferred income taxes 1,488.1 (0.2 ) 1,487.9 1,476.0 (0.2 ) 1,475.8 1,429.6 — 1,429.6 Total liabilities 8,095.2 201.7 8,296.9 7,856.5 207.8 8,064.3 7,207.1 102.1 7,309.2 Retained earnings 1,479.2 (0.5 ) 1,478.7 1,450.9 (0.4 ) 1,450.5 1,390.8 (0.2 ) 1,390.6 Total shareholders’ equity 1,811.5 (0.5 ) 1,811.0 1,819.5 (0.4 ) 1,819.1 1,896.7 (0.1 ) 1,896.6 Total liabilities and shareholders’ equity 9,906.8 201.2 10,108.0 9,676.0 207.4 9,883.4 9,103.8 102.0 9,205.8 The effects of this revision on the individual line items within our Consolidated Statements of Cash Flows were as follows (in millions): Year ended December 31, 2014 Year ended December 31, 2013 Year ended December 31, 2012 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net earnings $ 218.6 (0.3 ) 218.3 $ 237.8 0.1 237.9 $ 210.0 (0.3 ) 209.7 Depreciation expense 1,040.3 17.6 1,057.8 957.1 26.5 983.6 939.7 22.4 962.1 Deferred income tax expense 104.8 — 104.7 113.6 — 113.6 87.1 (0.1 ) 87.0 Accrued expenses and other non-current liabilities (48.7 ) (4.4 ) (53.1 ) (66.6 ) 2.2 (64.4 ) (68.3 ) 4.1 (64.2 ) Net cash provided by operating activities from continuing operations 1,370.0 12.8 1,382.8 1,223.1 28.7 1,251.8 1,134.1 26.1 1,160.2 Debt proceeds 839.7 125.8 965.5 557.0 — 557.0 745.8 130.2 876.0 Debt repaid, including capital and financing lease obligations (280.7 ) (12.8 ) (293.5 ) (332.6 ) (46.6 ) (379.2 ) (283.9 ) (26.1 ) (310.0 ) Net cash provided by financing activities from continuing operations 198.7 113.0 311.7 393.6 (46.5 ) 347.1 333.8 104.1 437.9 Purchases of property and revenue earning equipment (2,259.2 ) — (2,259.2 ) (2,140.5 ) 17.9 (2,122.6 ) (2,133.2 ) — (2,133.2 ) Sale and leaseback of revenue earning equipment 125.8 (125.8 ) — — — — 130.2 (130.2 ) — Net cash used in investing activities from continuing operations (1,578.7 ) (125.8 ) (1,704.5 ) (1,621.7 ) 17.9 (1,603.8 ) (1,504.3 ) (130.2 ) (1,634.5 ) Three months ended March 31, 2015 Three months ended March 31, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net earnings $ 52.9 (0.1 ) 52.8 $ 48.2 0.1 48.3 Depreciation expense 262.4 6.2 268.6 248.8 3.1 251.9 Deferred income tax expense 26.7 (0.1 ) 26.6 21.7 — 21.7 Accrued expenses and other non-current liabilities (21.5 ) (0.1 ) (21.6 ) (29.9 ) (3.1 ) (33.0 ) Net cash provided by operating activities from continuing operations 277.9 6.0 283.8 237.7 — 237.7 Debt repaid, including capital and financing lease obligations (457.6 ) (6.0 ) (463.5 ) (252.8 ) — (252.8 ) Net cash provided by financing activities from continuing operations 184.8 (6.0 ) 178.9 215.2 — 215.2 Six months ended June 30, 2014 Nine months ended September 30, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net earnings $ 123.6 — 123.6 $ 207.3 — 207.3 Depreciation expense 506.0 6.1 512.1 770.1 11.3 781.4 Accrued expenses and other non-current liabilities (67.6 ) 0.2 (67.4 ) (41.5 ) (4.9 ) (46.4 ) Net cash provided by operating activities from continuing operations 536.5 6.4 542.9 974.7 6.3 981.0 Debt proceeds 765.7 — 765.7 769.9 125.8 895.7 Debt repaid, including capital and financing lease obligations (271.2 ) (6.4 ) (277.6 ) (278.4 ) (6.4 ) (284.8 ) Net cash provided by financing activities from continuing operations 430.0 (6.4 ) 423.6 213.1 119.4 332.5 Sale and leaseback of revenue earning equipment — — — 125.8 (125.8 ) — Net cash used in investing activities from continuing operations (939.8 ) — (939.8 ) (1,171.5 ) (125.8 ) (1,297.3 ) |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 during the periods: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (In thousands) Stock option and stock purchase plans $ 1,956 2,241 $ 4,257 4,478 Nonvested stock 3,548 2,890 6,912 5,511 Share-based compensation expense 5,504 5,131 11,169 9,989 Income tax benefit (1,860 ) (1,713 ) (3,743 ) (3,389 ) Share-based compensation expense, net of tax $ 3,644 3,418 $ 7,426 6,600 |
Summary of share-based compensation expense recognized related to cash awards | The following table is a summary of compensation expense recognized for market-based cash awards in addition to the share-based compensation expense reported in the previous table: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (In thousands) Cash awards $ 281 $ 743 $ 464 $ 1,266 |
Summary of the awards granted under the Plans | The following table is a summary of the awards granted under the Plans during the periods presented: Six months ended June 30, 2015 2014 (In thousands) Stock options 362 405 Market-based restricted stock rights 19 22 Performance-based restricted stock rights 42 30 Time-vested restricted stock rights 80 158 Total 503 615 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (In thousands, except per share amounts) Earnings per share — Basic: Earnings from continuing operations $ 85,917 75,721 $ 139,243 124,847 Less: Distributed and undistributed earnings allocated to nonvested stock (246 ) (302 ) (393 ) (582 ) Earnings from continuing operations available to common shareholders — Basic $ 85,671 75,419 $ 138,850 124,265 Weighted average common shares outstanding — Basic 52,827 52,564 52,712 52,612 Earnings from continuing operations per common share — Basic $ 1.62 1.43 $ 2.63 2.36 Earnings per share — Diluted: Earnings from continuing operations $ 85,917 75,721 $ 139,243 124,847 Less: Distributed and undistributed earnings allocated to nonvested stock (244 ) (299 ) (390 ) (578 ) Earnings from continuing operations available to common shareholders — Diluted $ 85,673 75,422 $ 138,853 124,269 Weighted average common shares outstanding — Basic 52,827 52,564 52,712 52,612 Effect of dilutive equity awards 468 482 492 472 Weighted average common shares outstanding — Diluted 53,295 53,046 53,204 53,084 Earnings from continuing operations per common share — Diluted $ 1.61 1.42 $ 2.61 2.34 Anti-dilutive equity awards not included above 363 412 273 314 |
Revenue Earning Equipment (Tabl
Revenue Earning Equipment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Revenue Earning Equipment [Abstract] | |
Summary of revenue earning equipment | June 30, 2015 December 31, 2014 Cost Accumulated Depreciation Net Book Value (1) Cost Accumulated Depreciation Net Book Value (1) (In thousands) Held for use: Full service lease $ 8,398,012 (2,677,023 ) 5,720,989 $ 8,008,122 (2,598,140 ) 5,409,982 Commercial rental 2,925,063 (898,319 ) 2,026,744 2,570,081 (864,543 ) 1,705,538 Held for sale 342,659 (236,355 ) 106,304 312,699 (226,333 ) 86,366 Total $ 11,665,734 (3,811,697 ) 7,854,037 $ 10,890,902 (3,689,016 ) 7,201,886 ———————————— (1) Revenue earning equipment, net includes vehicles acquired under capital leases of $48.0 million , less accumulated depreciation of $20.3 million , at June 30, 2015 , and $47.8 million , less accumulated depreciation of $22.5 million , at December 31, 2014 . Additionally, revenue earning equipment, net underlying asset-backed U.S. obligations was $346.1 million at June 30, 2015 ( $403.3 million cost, less $57.1 million of accumulated depreciation) and $207.4 million at December 31, 2014 ( $247.8 million cost, less $40.3 million of accumulated depreciation). See Note (A), General, Revision of Prior Period Financial Information for further information related to our evaluation of accounting for these transactions. |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 Dedicated Supply Total Balance at January 1, 2015: Goodwill $ 233,217 40,808 148,225 422,250 Accumulated impairment losses (10,322 ) — (18,899 ) (29,221 ) 222,895 40,808 129,326 393,029 Foreign currency translation adjustments (247 ) — (522 ) (769 ) Balance at June 30, 2015: Goodwill 232,970 40,808 147,703 421,481 Accumulated impairment losses (10,322 ) — (18,899 ) (29,221 ) $ 222,648 40,808 128,804 392,260 |
Accrued Expenses and Other Li32
Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Expenses and Other Liabilities | June 30, 2015 December 31, 2014 Accrued Expenses Non-Current Liabilities Total Accrued Expenses Non-Current Liabilities Total (In thousands) Salaries and wages $ 94,846 — 94,846 $ 114,446 — 114,446 Deferred compensation 2,243 41,518 43,761 3,209 37,093 40,302 Pension benefits 3,687 457,170 460,857 3,739 444,657 448,396 Other postretirement benefits 2,097 25,904 28,001 2,112 26,889 29,001 Other employee benefits 7,681 16,910 24,591 7,172 19,276 26,448 Insurance obligations (1) 136,394 198,860 335,254 132,246 189,431 321,677 Environmental liabilities 3,728 7,152 10,880 3,877 8,002 11,879 Operating taxes 106,286 — 106,286 92,330 — 92,330 Income taxes 2,785 24,704 27,489 5,066 22,843 27,909 Interest 35,875 — 35,875 33,509 — 33,509 Deposits, mainly from customers 64,059 5,648 69,707 59,388 5,929 65,317 Deferred revenue 14,388 — 14,388 11,759 — 11,759 Acquisition holdbacks 6,061 — 6,061 3,817 2,187 6,004 Other 43,592 21,549 65,141 41,009 27,035 68,044 Total $ 523,722 799,415 1,323,137 $ 513,679 783,342 1,297,021 ———————————— (1) Insurance obligations are primarily comprised of self-insured claim liabilities. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Weighted-Average Interest Rate June 30, December 31, Maturities June 30, December 31, (In thousands) Short-term debt and current portion of long-term debt: Short-term debt 2.75% 1.30% 2015 $ 316 3,773 Current portion of long-term debt 347,501 32,511 Total short-term debt and current portion of long-term debt 347,817 36,284 Long-term debt: U.S. commercial paper (1) 0.43% 0.35% 2020 311,432 276,694 Global revolving credit facility 2.78% 1.60% 2020 40,908 11,190 Unsecured U.S. notes — Medium-term notes (1) 3.21% 3.29% 2015-2025 4,111,991 3,772,159 Unsecured U.S. obligations 1.50% 0.76% 2018 50,000 110,500 Unsecured foreign obligations 1.92% 2.01% 2015-2020 295,217 295,776 Asset-backed U.S. obligations (2) 1.79% 1.81% 2018-2022 362,075 218,137 Capital lease obligations 1.79% 1.73% 2015-2022 38,418 37,560 Total before fair market value adjustment 5,210,041 4,722,016 Fair market value adjustment on notes subject to hedging (3) 6,668 4,830 5,216,709 4,726,846 Current portion of long-term debt (347,501 ) (32,511 ) Long-term debt 4,869,208 4,694,335 Total debt $ 5,217,025 4,730,619 ———————————— (1) We had unamortized original issue discounts of $8.1 million and $7.9 million at June 30, 2015 and December 31, 2014 , respectively. (2) Asset-backed U.S. obligations of $362.1 million at June 30, 2015 and $218.1 million at December 31, 2014 are related to financing transactions involving revenue earning equipment. See Note (A), General, Revision of Prior Period Financial Information for further information related to our evaluation of accounting for these transactions. (3) The notional amount of executed interest rate swaps designated as fair value hedges was $600 million at both June 30, 2015 and December 31, 2014 . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on nonrecurring basis | The following tables present our assets that are measured at fair value on a nonrecurring basis and considered a Level 3 fair value measurement: Fair Value Measurements at Total Losses (2) June 30, 2015 Three months ended June 30, 2015 Six months ended June 30, 2015 (In thousands) Assets held for sale: Revenue earning equipment: (1) Trucks $ 6,805 $ 1,515 $ 2,743 Tractors 7,389 1,081 1,908 Trailers 1,625 656 972 Total assets at fair value $ 15,819 $ 3,252 5,623 Fair Value Measurements at Total Losses (2) June 30, 2014 Three months ended June 30, 2014 Six months ended June 30, 2014 (In thousands) Assets held for sale: Revenue earning equipment: (1) Trucks $ 10,713 $ 1,572 $ 3,454 Tractors 6,057 662 2,294 Trailers 497 281 442 Total assets at fair value $ 17,267 $ 2,515 $ 6,190 ———————————— (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 was less than carrying value. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 : Maturity date Face value of medium-term notes Aggregate notional Fixed interest rate Weighted-average variable interest rate on hedged debt as of June 30, Issuance date 2015 2014 (Dollars in thousands) May 2011 June 2017 $350,000 $150,000 3.50% 1.49% 1.42% November 2013 November 2018 $300,000 $100,000 2.45% 1.23% 1.18% February 2014 June 2019 $350,000 $100,000 2.55% 1.15% 1.10% May 2014 September 2019 $400,000 $100,000 2.45% 0.90% 0.85% February 2015 March 2020 $400,000 $150,000 2.65% 1.14% — |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive loss, net of tax | The following summary sets forth the components of accumulated other comprehensive loss, net of tax: Currency Translation Adjustments and Other Net Actuarial Loss (1) Prior Service Credit (1) Accumulated Other Comprehensive Loss (In thousands) December 31, 2014 $ (36,087 ) (585,941 ) 1,758 (620,270 ) Amortization — 9,790 (712 ) 9,078 Other current period change (30,345 ) (5,321 ) — (35,666 ) June 30, 2015 $ (66,432 ) (581,472 ) 1,046 (646,858 ) Currency Translation Adjustments and Other Net Actuarial Loss (1) Prior Service Credit (1) Accumulated Other Comprehensive Loss (In thousands) December 31, 2013 $ 35,875 (477,883 ) 3,760 (438,248 ) Amortization — 7,455 (1,335 ) 6,120 Other current period change 11,681 (2,048 ) — 9,633 June 30, 2014 $ 47,556 (472,476 ) 2,425 (422,495 ) _______________________ (1) These amounts are included in the computation of net periodic benefit cost. See Note (M), "Employee Benefit Plans," for further information. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of net periodic benefit cost | Components of net periodic benefit cost/(credit) were as follows: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (In thousands) Pension Benefits Company-administered plans: Service cost $ 3,566 3,171 $ 7,193 6,594 Interest cost 22,048 25,135 43,935 50,696 Expected return on plan assets (25,021 ) (29,284 ) (49,921 ) (58,002 ) Amortization of: Net actuarial loss 7,664 5,579 15,472 11,814 Prior service credit (74 ) (435 ) (150 ) (893 ) 8,183 4,166 16,529 10,209 Union-administered plans 2,113 2,123 4,285 4,214 Net periodic benefit cost $ 10,296 6,289 $ 20,814 14,423 Company-administered plans: U.S. $ 8,599 4,499 $ 17,491 10,786 Non-U.S. (416 ) (333 ) (962 ) (577 ) 8,183 4,166 16,529 10,209 Union-administered plans 2,113 2,123 4,285 4,214 $ 10,296 6,289 $ 20,814 14,423 Postretirement Benefits Company-administered plans: Service cost $ 79 89 $ 190 224 Interest cost 275 348 559 713 Amortization of: Net actuarial gain (278 ) (234 ) (474 ) (363 ) Prior service credit (478 ) (615 ) (956 ) (1,230 ) Net periodic benefit credit $ (402 ) (412 ) $ (681 ) (656 ) Company-administered plans: U.S. $ (531 ) (524 ) $ (946 ) (921 ) Non-U.S. 129 112 265 265 $ (402 ) (412 ) $ (681 ) (656 ) |
Supplemental Cash Flow Inform38
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental cash flow information | Supplemental cash flow information was as follows: Six months ended June 30, 2015 2014 (In thousands) Interest paid $ 69,681 69,834 Income taxes paid 9,970 7,332 Changes in accounts payable related to purchases of revenue earning equipment 124,766 1,520 Operating and revenue earning equipment acquired under capital leases 5,847 2,371 |
Miscellaneous Income, Net (Tabl
Miscellaneous Income, Net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (In thousands) Rabbi trust investment income $ 119 1,077 $ 1,186 1,577 Insurance proceeds — 756 314 756 Foreign currency translation 137 23 266 (383 ) Gain on sales of operating property and equipment 27 1,286 81 2,590 Contract settlement 41 — 56 2,908 Other, net 704 1,686 1,762 2,762 Total $ 1,028 4,828 $ 3,665 10,210 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Financial information of business segments | The following tables set forth financial information for each of our business segments and provides a reconciliation between segment EBT and earnings from continuing operations before income taxes for the three and six months ended June 30, 2015 and 2014 . 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. FMS DTS SCS Eliminations Total (in thousands) For the three months ended June 30, 2015 Revenue from external customers $ 1,042,476 223,514 396,941 — 1,662,931 Inter-segment revenue 106,873 — — (106,873 ) — Total revenue $ 1,149,349 223,514 396,941 (106,873 ) 1,662,931 Segment EBT $ 122,452 12,435 27,699 (11,588 ) 150,998 Unallocated CSS (10,924 ) Non-operating pension costs (4,688 ) Restructuring and other charges, net and other items (1) (1,939 ) Earnings from continuing operations before income taxes $ 133,447 Segment capital expenditures paid (2) $ 761,542 646 3,570 — 765,758 Unallocated CSS 10,218 Capital expenditures paid $ 775,976 For the three months ended June 30, 2014 Revenue from external customers $ 1,056,992 234,014 393,565 — 1,684,571 Inter-segment revenue 124,230 — — (124,230 ) — Total revenue $ 1,181,222 234,014 393,565 (124,230 ) 1,684,571 Segment EBT $ 113,553 12,998 17,730 (10,523 ) 133,758 Unallocated CSS (12,125 ) Non-operating pension costs (1,544 ) Earnings from continuing operations before income taxes $ 120,089 Segment capital expenditures paid (2) $ 623,138 408 3,841 — 627,387 Unallocated CSS 49,113 Capital expenditures paid $ 676,500 ———————————— (1) See Note (N), "Other Items Impacting Comparability," for additional information. (2) Excludes revenue earning equipment acquired under capital leases. FMS DTS SCS Eliminations Total (in thousands) For the six months ended June 30, 2015 Revenue from external customers $ 2,025,916 436,173 767,995 — 3,230,084 Inter-segment revenue 210,583 — — (210,583 ) — Total revenue $ 2,236,499 436,173 767,995 (210,583 ) 3,230,084 Segment EBT $ 212,170 21,405 43,388 (23,122 ) 253,841 Unallocated CSS (22,866 ) Non-operating pension costs (9,571 ) Restructuring and other charges, net and other items (1) (3,780 ) Earnings from continuing operations before income taxes $ 217,624 Segment capital expenditures paid (2) $ 1,300,285 1,355 9,557 — 1,311,197 Unallocated CSS 18,021 Capital expenditures paid $ 1,329,218 For the six months ended June 30, 2014 Revenue from external customers $ 2,070,388 449,976 774,944 — 3,295,308 Inter-segment revenue 245,921 — — (245,921 ) — Total revenue $ 2,316,309 449,976 774,944 (245,921 ) 3,295,308 Segment EBT $ 190,586 21,684 30,828 (20,151 ) 222,947 Unallocated CSS (22,954 ) Non-operating pension costs (4,858 ) Earnings from continuing operations before income taxes $ 195,135 Segment capital expenditures paid (2), (3) $ 1,191,377 658 7,463 — 1,199,498 Unallocated CSS 55,724 Capital expenditures paid $ 1,255,222 (1) See Note (N), "Other Items Impacting Comparability," for additional information. (2) Excludes revenue earning equipment acquired under capital leases. (3) Excludes acquisition payments of $1.6 million during the six months ended June 30, 2014. |
General - Additional Informatio
General - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Revenue earning equipment, net | $ 7,854,037 | $ 7,409,529 | $ 7,201,886 | $ 6,592,826 |
Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Revenue earning equipment, net | $ 201,200 | $ 207,438 | $ 102,000 |
General - Schedule of Error Cor
General - Schedule of Error Corrections and Prior Period Adjustments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
Income Statement [Abstract] | |||||||||||||||
Cost of lease and rental | $ 531,308 | $ 518,422 | $ 522,202 | $ 507,620 | $ 492,572 | $ 1,049,730 | $ 1,000,192 | $ 1,522,394 | $ 2,036,881 | $ 1,925,546 | $ 1,900,424 | ||||
Interest expense | 39,075 | 36,802 | 36,681 | 35,729 | 35,538 | 75,877 | 71,267 | 107,948 | 144,739 | 140,463 | 143,305 | ||||
Earnings from continuing operations before income taxes | 133,447 | 84,177 | 129,608 | 120,089 | 75,046 | 217,624 | 195,135 | 324,743 | 338,267 | 369,014 | 302,768 | ||||
Provision for income taxes | 47,530 | 45,713 | 44,368 | 78,381 | 70,288 | 116,001 | 118,042 | 125,739 | 102,100 | ||||||
Earnings from continuing operations | 85,917 | 53,326 | 83,895 | 75,721 | 49,126 | 139,243 | 124,847 | 208,742 | 220,225 | 243,275 | 200,668 | ||||
Net earnings | $ 85,159 | 52,789 | 83,617 | $ 75,385 | 48,260 | $ 137,948 | $ 123,645 | 207,262 | $ 218,341 | $ 237,871 | $ 209,748 | ||||
Earnings (loss) per common share — Diluted, Net Earnings | $ 1.59 | [1] | $ 1.41 | [1] | $ 2.59 | [1] | $ 2.32 | [1] | $ 4.14 | $ 4.63 | $ 3.90 | ||||
Statement of Comprehensive Income [Abstract] | |||||||||||||||
Comprehensive income (loss) | $ 111,333 | 100 | 39,700 | $ 102,603 | 36,800 | $ 111,360 | $ 139,398 | 179,100 | $ 36,400 | $ 387,300 | $ 189,300 | ||||
Statement of Financial Position [Abstract] | |||||||||||||||
Revenue earning equipment, net | 7,854,037 | 7,409,529 | 7,854,037 | 7,201,886 | 6,592,826 | ||||||||||
Total assets | 10,638,264 | 10,107,975 | 10,638,264 | 9,883,424 | 9,205,771 | ||||||||||
Short-term debt and current portion of long-term debt | 347,817 | 35,452 | 347,817 | 36,284 | 272,203 | ||||||||||
Accrued expenses and other current liabilities | 523,722 | 482,521 | 523,722 | 513,679 | 494,395 | ||||||||||
Total current liabilities | 1,523,732 | 1,143,446 | 1,523,732 | 1,110,815 | 1,241,962 | ||||||||||
Long-term debt | 4,869,208 | 4,880,638 | 4,869,208 | 4,694,335 | 4,022,975 | ||||||||||
Other non-current liabilities | 799,415 | 784,948 | 799,415 | 783,342 | 614,713 | ||||||||||
Deferred income taxes | 1,532,470 | 1,487,913 | 1,532,470 | 1,475,845 | 1,429,560 | ||||||||||
Total liabilities | 8,724,825 | 8,296,944 | 8,724,825 | 8,064,337 | 7,309,210 | ||||||||||
Retained earnings | 1,544,047 | 1,478,660 | 1,544,047 | 1,450,509 | 1,390,603 | ||||||||||
Total shareholders’ equity | 1,913,439 | 1,811,031 | 1,913,439 | 1,819,087 | 1,896,561 | ||||||||||
Total liabilities and shareholders’ equity | 10,638,264 | 10,107,975 | 10,638,264 | 9,883,424 | 9,205,771 | ||||||||||
Statement of Cash Flows [Abstract] | |||||||||||||||
Net earnings | $ 85,159 | 52,789 | 83,617 | 75,385 | 48,260 | 137,948 | 123,645 | 207,262 | 218,341 | 237,871 | 209,748 | ||||
Depreciation expense | 268,649 | 251,871 | 546,699 | 512,109 | 781,367 | 1,057,813 | 983,610 | 962,052 | |||||||
Deferred income tax expense | 26,646 | 21,667 | 67,592 | 59,987 | 104,713 | 113,621 | 86,984 | ||||||||
Accrued expenses and other non-current liabilities | (21,576) | (32,999) | 17,005 | (67,439) | (46,357) | (53,109) | (64,423) | (64,242) | |||||||
Net cash provided by operating activities from continuing operations | 283,845 | 237,660 | 658,698 | 542,888 | 981,044 | 1,382,818 | 1,251,811 | 1,160,175 | |||||||
Debt proceeds | 930,090 | 765,713 | 895,733 | 965,533 | 556,989 | 875,961 | |||||||||
Debt repaid, including capital and financing lease obligations | (463,536) | (252,845) | (486,103) | (277,636) | (284,811) | (293,488) | (379,189) | (309,988) | |||||||
Net cash provided by financing activities from continuing operations | 178,870 | 215,169 | 445,520 | 423,565 | 332,501 | 311,650 | 347,070 | 437,938 | |||||||
Purchases of property and revenue earning equipment | (1,329,218) | (1,255,222) | (2,259,164) | (2,122,628) | (2,133,235) | ||||||||||
Sale and leaseback of revenue earning equipment | 0 | 0 | 0 | 0 | 0 | ||||||||||
Net cash used in investing activities from continuing operations | $ (1,078,663) | (939,818) | (1,297,281) | (1,704,510) | (1,603,818) | (1,634,457) | |||||||||
As Previously Reported [Member] | |||||||||||||||
Income Statement [Abstract] | |||||||||||||||
Cost of lease and rental | 519,174 | 522,888 | 508,091 | 493,043 | 1,001,134 | 1,524,022 | 2,039,263 | 1,928,933 | 1,902,823 | ||||||
Interest expense | 35,849 | 35,882 | 35,302 | 35,109 | 70,411 | 106,293 | 142,075 | 137,196 | 140,557 | ||||||
Earnings from continuing operations before income taxes | 84,378 | 129,721 | 120,045 | 75,004 | 195,049 | 324,770 | 338,549 | 368,895 | 303,117 | ||||||
Provision for income taxes | 45,754 | 116,011 | 118,090 | 125,699 | 102,218 | ||||||||||
Earnings from continuing operations | 53,453 | 83,967 | 49,098 | 208,759 | 220,459 | 243,196 | 200,899 | ||||||||
Net earnings | 52,916 | 83,689 | 48,232 | 123,590 | 207,279 | $ 218,575 | $ 237,792 | $ 209,979 | |||||||
Earnings (loss) per common share — Diluted, Net Earnings | $ 4.14 | $ 4.63 | $ 3.91 | ||||||||||||
Statement of Comprehensive Income [Abstract] | |||||||||||||||
Comprehensive income (loss) | 154 | 39,761 | 102,576 | 36,767 | 139,343 | 179,104 | $ 36,553 | $ 387,163 | $ 189,525 | ||||||
Statement of Financial Position [Abstract] | |||||||||||||||
Revenue earning equipment, net | 7,208,345 | 6,994,448 | 6,490,837 | ||||||||||||
Total assets | 9,906,791 | 9,675,986 | 9,103,782 | ||||||||||||
Short-term debt and current portion of long-term debt | 11,417 | 12,207 | 259,438 | ||||||||||||
Accrued expenses and other current liabilities | 489,647 | 520,532 | 496,337 | ||||||||||||
Total current liabilities | 1,126,537 | 1,093,591 | 1,231,139 | ||||||||||||
Long-term debt | 4,692,503 | 4,500,275 | 3,929,987 | ||||||||||||
Other non-current liabilities | 788,094 | 786,676 | 616,305 | ||||||||||||
Deferred income taxes | 1,488,111 | 1,475,970 | 1,429,637 | ||||||||||||
Total liabilities | 8,095,245 | 7,856,512 | 7,207,068 | ||||||||||||
Retained earnings | 1,479,175 | 1,450,896 | 1,390,756 | ||||||||||||
Total shareholders’ equity | 1,811,546 | 1,819,474 | 1,896,714 | ||||||||||||
Total liabilities and shareholders’ equity | 9,906,791 | 9,675,986 | 9,103,782 | ||||||||||||
Statement of Cash Flows [Abstract] | |||||||||||||||
Net earnings | 52,916 | 83,689 | 48,232 | 123,590 | 207,279 | 218,575 | 237,792 | 209,979 | |||||||
Depreciation expense | 262,395 | 248,815 | 505,997 | 770,067 | 1,040,259 | 957,141 | 939,677 | ||||||||
Deferred income tax expense | 26,719 | 21,653 | 104,761 | 113,581 | 87,102 | ||||||||||
Accrued expenses and other non-current liabilities | (21,490) | (29,901) | (67,629) | (41,471) | (48,664) | (66,564) | (68,267) | ||||||||
Net cash provided by operating activities from continuing operations | 277,878 | 237,660 | 536,500 | 974,656 | 1,369,991 | 1,223,082 | 1,134,124 | ||||||||
Debt proceeds | 765,713 | 769,908 | 839,708 | 556,989 | 745,777 | ||||||||||
Debt repaid, including capital and financing lease obligations | (457,569) | (252,845) | (271,248) | (278,423) | (280,661) | (332,624) | (283,937) | ||||||||
Net cash provided by financing activities from continuing operations | 184,837 | 215,169 | 429,953 | 213,064 | 198,652 | 393,635 | 333,805 | ||||||||
Purchases of property and revenue earning equipment | (2,259,164) | (2,140,464) | (2,133,235) | ||||||||||||
Sale and leaseback of revenue earning equipment | 0 | 125,825 | 125,825 | 0 | 130,184 | ||||||||||
Net cash used in investing activities from continuing operations | (939,818) | (1,171,456) | (1,578,685) | (1,621,654) | (1,504,273) | ||||||||||
Adjustment [Member] | |||||||||||||||
Income Statement [Abstract] | |||||||||||||||
Cost of lease and rental | (800) | (700) | (500) | (400) | (900) | (1,600) | (2,400) | (3,400) | (2,400) | ||||||
Interest expense | 1,000 | 800 | 400 | 400 | 900 | 1,600 | 2,600 | 3,300 | 2,700 | ||||||
Earnings from continuing operations before income taxes | (200) | (100) | 100 | 0 | 100 | (100) | (200) | 100 | (300) | ||||||
Provision for income taxes | (100) | 0 | (100) | 0 | (100) | ||||||||||
Earnings from continuing operations | (200) | (100) | 0 | (100) | (300) | 100 | (200) | ||||||||
Net earnings | (100) | (100) | 100 | 0 | 0 | $ (300) | $ 100 | $ (300) | |||||||
Earnings (loss) per common share — Diluted, Net Earnings | $ 0 | $ 0 | $ (0.01) | ||||||||||||
Statement of Comprehensive Income [Abstract] | |||||||||||||||
Comprehensive income (loss) | (127) | (72) | $ 27 | 28 | 55 | (17) | $ (234) | $ 79 | $ (231) | ||||||
Statement of Financial Position [Abstract] | |||||||||||||||
Revenue earning equipment, net | 201,200 | 207,438 | 102,000 | ||||||||||||
Total assets | 201,200 | 207,400 | 102,000 | ||||||||||||
Short-term debt and current portion of long-term debt | 24,100 | 24,100 | 12,800 | ||||||||||||
Accrued expenses and other current liabilities | (7,100) | (6,800) | (1,900) | ||||||||||||
Total current liabilities | 16,900 | 17,200 | 10,900 | ||||||||||||
Long-term debt | 188,100 | 194,000 | 93,000 | ||||||||||||
Other non-current liabilities | (3,200) | (3,400) | (1,600) | ||||||||||||
Deferred income taxes | (200) | (200) | 0 | ||||||||||||
Total liabilities | 201,700 | 207,800 | 102,100 | ||||||||||||
Retained earnings | (500) | (400) | (200) | ||||||||||||
Total shareholders’ equity | (500) | (400) | (100) | ||||||||||||
Total liabilities and shareholders’ equity | 201,200 | 207,400 | 102,000 | ||||||||||||
Statement of Cash Flows [Abstract] | |||||||||||||||
Net earnings | (100) | $ (100) | 100 | 0 | 0 | (300) | 100 | (300) | |||||||
Depreciation expense | 6,200 | 3,100 | 6,100 | 11,300 | 17,554 | 26,500 | 22,400 | ||||||||
Deferred income tax expense | (100) | 0 | (48) | 0 | (100) | ||||||||||
Accrued expenses and other non-current liabilities | (100) | (3,100) | 200 | (4,900) | (4,400) | 2,200 | 4,100 | ||||||||
Net cash provided by operating activities from continuing operations | 5,967 | 0 | 6,400 | 0 | 12,800 | 28,700 | 26,100 | ||||||||
Debt proceeds | 0 | 125,800 | 125,800 | 0 | 130,200 | ||||||||||
Debt repaid, including capital and financing lease obligations | (5,967) | 0 | (6,400) | (6,400) | (12,800) | (46,600) | (26,100) | ||||||||
Net cash provided by financing activities from continuing operations | $ (5,967) | $ 0 | (6,400) | 119,400 | 113,000 | (46,500) | 104,100 | ||||||||
Purchases of property and revenue earning equipment | 0 | 17,900 | 0 | ||||||||||||
Sale and leaseback of revenue earning equipment | 0 | (125,800) | (125,800) | 0 | (130,200) | ||||||||||
Net cash used in investing activities from continuing operations | $ 0 | $ (125,800) | $ (125,800) | $ 17,900 | $ (130,200) | ||||||||||
[1] | EPS amounts may not be additive due to rounding. |
Recent Accounting Pronounceme43
Recent Accounting Pronouncements (Details) $ in Millions | Jun. 30, 2015USD ($) |
New Accounting Pronouncement, Early Adoption, Effect [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unamortized debt issuance costs | $ 19.4 |
Share-Based Compensation Plan44
Share-Based Compensation Plans - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 5,504 | $ 5,131 | $ 11,169 | $ 9,989 |
Income tax benefit | (1,860) | (1,713) | (3,743) | (3,389) |
Share-based compensation expense, net of tax | 3,644 | 3,418 | 7,426 | 6,600 |
Cash awards | 281 | 743 | 464 | 1,266 |
Stock Option and Stock Purchase Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 1,956 | 2,241 | 4,257 | 4,478 |
Nonvested Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 3,548 | $ 2,890 | $ 6,912 | $ 5,511 |
Share-Based Compensation Plan45
Share-Based Compensation Plans (Details Textual) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Total unrecognized pre-tax compensation expense | $ 30.1 |
Weighted-average period to recognize pre-tax compensation expense (in years) | 2 years |
Share-Based Compensation Plan46
Share-Based Compensation Plans - Summary of Awards Granted (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total awards granted during period | 503 | 615 |
Stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, granted in period | 362 | 405 |
Market-based restricted stock rights [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock rights, granted during period | 19 | 22 |
Performance-based restricted stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock rights, granted during period | 42 | 30 |
Time-vested restricted stock rights [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock rights, granted during period | 80 | 158 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Earnings per share — Basic: | ||||||||||||
Earnings from continuing operations | $ 85,917 | $ 53,326 | $ 83,895 | $ 75,721 | $ 49,126 | $ 139,243 | $ 124,847 | $ 208,742 | $ 220,225 | $ 243,275 | $ 200,668 | |
Less: Distributed and undistributed earnings allocated to nonvested stock | (246) | (302) | (393) | (582) | ||||||||
Earnings from continuing operations available to common shareholders — Basic | $ 85,671 | $ 75,419 | $ 138,850 | $ 124,265 | ||||||||
Weighted average common shares outstanding - Basic (shares) | 52,827 | 52,564 | 52,712 | 52,612 | ||||||||
Earnings from continuing operations per common share — Basic | [1] | $ 1.62 | $ 1.43 | $ 2.63 | $ 2.36 | |||||||
Earnings per share — Diluted: | ||||||||||||
Earnings from continuing operations | $ 85,917 | $ 53,326 | $ 83,895 | $ 75,721 | $ 49,126 | $ 139,243 | $ 124,847 | $ 208,742 | $ 220,225 | $ 243,275 | $ 200,668 | |
Less: Distributed and undistributed earnings allocated to nonvested stock | (244) | (299) | (390) | (578) | ||||||||
Earnings from continuing operations available to common shareholders — Diluted | $ 85,673 | $ 75,422 | $ 138,853 | $ 124,269 | ||||||||
Weighted average common shares outstanding - Basic (shares) | 52,827 | 52,564 | 52,712 | 52,612 | ||||||||
Effect of dilutive equity awards (shares) | 468 | 482 | 492 | 472 | ||||||||
Weighted average common shares outstanding — Diluted (shares) | 53,295 | 53,046 | 53,204 | 53,084 | ||||||||
Earnings from continuing operations per common share — Diluted | [1] | $ 1.61 | $ 1.42 | $ 2.61 | $ 2.34 | |||||||
Anti-dilutive equity awards not included above (shares) | 363 | 412 | 273 | 314 | ||||||||
[1] | EPS amounts may not be additive due to rounding. |
Revenue Earning Equipment - Sch
Revenue Earning Equipment - Schedule of Revenue Earning Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Revenue Earning Equipment [Line Items] | ||||
Cost | $ 11,665,734 | $ 10,890,902 | ||
Accumulated Depreciation | (3,811,697) | (3,689,016) | ||
Net Book Value | 7,854,037 | $ 7,409,529 | 7,201,886 | $ 6,592,826 |
Held for use: Full service lease [Member] | ||||
Revenue Earning Equipment [Line Items] | ||||
Cost | 8,398,012 | 8,008,122 | ||
Accumulated Depreciation | (2,677,023) | (2,598,140) | ||
Net Book Value | 5,720,989 | 5,409,982 | ||
Held for use: Commercial rental [Member] | ||||
Revenue Earning Equipment [Line Items] | ||||
Cost | 2,925,063 | 2,570,081 | ||
Accumulated Depreciation | (898,319) | (864,543) | ||
Net Book Value | 2,026,744 | 1,705,538 | ||
Held-for-sale [Member] | ||||
Revenue Earning Equipment [Line Items] | ||||
Cost | 342,659 | 312,699 | ||
Accumulated Depreciation | (236,355) | (226,333) | ||
Net Book Value | 106,304 | 86,366 | ||
Assets Held under Capital Leases [Member] | ||||
Revenue Earning Equipment [Line Items] | ||||
Cost | 48,000 | 47,800 | ||
Accumulated Depreciation | $ (20,300) | $ (22,500) |
Revenue Earning Equipment (Deta
Revenue Earning Equipment (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2013 | |
Revenue Earning Equipment [Line Items] | |||||
Revenue earning equipment, net | $ 7,854,037 | $ 7,854,037 | $ 7,201,886 | $ 7,409,529 | $ 6,592,826 |
Revenue earning equipment, cost | 11,665,734 | 11,665,734 | 10,890,902 | ||
Effect of change in estimated residual values of revenue earning equipment on pre tax earnings | 10,000 | 20,000 | |||
Net investment in direct financing and sales-type leases | 432,800 | 432,800 | 417,000 | ||
Allowance for credit losses | 300 | $ 300 | 300 | ||
Trucks [Member] | Minimum [Member] | |||||
Revenue Earning Equipment [Line Items] | |||||
Lease term | 3 years | ||||
Trucks [Member] | Maximum [Member] | |||||
Revenue Earning Equipment [Line Items] | |||||
Lease term | 7 years | ||||
Trailers [Member] | Maximum [Member] | |||||
Revenue Earning Equipment [Line Items] | |||||
Lease term | 10 years | ||||
Adjustment [Member] | |||||
Revenue Earning Equipment [Line Items] | |||||
Revenue earning equipment, net | 207,438 | $ 201,200 | $ 102,000 | ||
Asset-backed U.S. obligations [Member] | |||||
Revenue Earning Equipment [Line Items] | |||||
Revenue earning equipment, net | 346,100 | $ 346,100 | |||
Revenue earning equipment, cost | $ 403,300 | 403,300 | 247,800 | ||
Accumulated depreciation on asset-backed obligations | $ (57,100) | $ (40,300) |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015USD ($)reporting_unit | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Carrying amount of goodwill attributable to each reportable business segment | |||
Goodwill, gross | $ 421,481 | $ 421,481 | $ 422,250 |
Accumulated impairment losses | (29,221) | (29,221) | (29,221) |
Goodwill | 392,260 | 392,260 | 393,029 |
Foreign currency translation adjustments | (769) | ||
Fleet Management Solutions [Member] | |||
Carrying amount of goodwill attributable to each reportable business segment | |||
Goodwill, gross | 232,970 | 232,970 | 233,217 |
Accumulated impairment losses | (10,322) | (10,322) | (10,322) |
Goodwill | 222,648 | 222,648 | 222,895 |
Foreign currency translation adjustments | (247) | ||
Dedicated Transportation Solutions [Member] | |||
Carrying amount of goodwill attributable to each reportable business segment | |||
Goodwill, gross | 40,808 | 40,808 | 40,808 |
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill | 40,808 | 40,808 | 40,808 |
Foreign currency translation adjustments | 0 | ||
Supply Chain Solutions [Member] | |||
Carrying amount of goodwill attributable to each reportable business segment | |||
Goodwill, gross | 147,703 | 147,703 | 148,225 |
Accumulated impairment losses | (18,899) | (18,899) | (18,899) |
Goodwill | $ 128,804 | 128,804 | $ 129,326 |
Foreign currency translation adjustments | $ (522) | ||
Quantitative [Member] | |||
Carrying amount of goodwill attributable to each reportable business segment | |||
Number of reporting units | reporting_unit | 4 | ||
Qualitative Test [Member] | |||
Carrying amount of goodwill attributable to each reportable business segment | |||
Number of reporting units | reporting_unit | 1 |
Accrued Expenses and Other Li51
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accrued Expenses | ||||
Salaries and wages | $ 94,846 | $ 114,446 | ||
Deferred compensation | 2,243 | 3,209 | ||
Pension benefits | 3,687 | 3,739 | ||
Other postretirement benefits | 2,097 | 2,112 | ||
Other employee benefits | 7,681 | 7,172 | ||
Insurance obligations | 136,394 | 132,246 | ||
Environmental liabilities | 3,728 | 3,877 | ||
Operating taxes | 106,286 | 92,330 | ||
Income taxes | 2,785 | 5,066 | ||
Interest | 35,875 | 33,509 | ||
Deposits, mainly from customers | 64,059 | 59,388 | ||
Deferred revenue | 14,388 | 11,759 | ||
Acquisition holdbacks | 6,061 | 3,817 | ||
Other | 43,592 | 41,009 | ||
Total | 523,722 | $ 482,521 | 513,679 | $ 494,395 |
Non-Current Liabilities | ||||
Salaries and wages | 0 | 0 | ||
Deferred compensation | 41,518 | 37,093 | ||
Pension benefits | 457,170 | 444,657 | ||
Other postretirement benefits | 25,904 | 26,889 | ||
Other employee benefits | 16,910 | 19,276 | ||
Insurance obligations | 198,860 | 189,431 | ||
Environmental liabilities | 7,152 | 8,002 | ||
Operating taxes | 0 | 0 | ||
Income taxes | 24,704 | 22,843 | ||
Interest | 0 | 0 | ||
Deposits, mainly from customers | 5,648 | 5,929 | ||
Deferred revenue | 0 | 0 | ||
Acquisition holdbacks | 0 | 2,187 | ||
Other | 21,549 | 27,035 | ||
Total | 799,415 | $ 784,948 | 783,342 | $ 614,713 |
Total | ||||
Salaries and wages | 94,846 | 114,446 | ||
Deferred compensation | 43,761 | 40,302 | ||
Pension benefits | 460,857 | 448,396 | ||
Other postretirement benefits | 28,001 | 29,001 | ||
Other employee benefits | 24,591 | 26,448 | ||
Insurance obligations | 335,254 | 321,677 | ||
Environmental liabilities | 10,880 | 11,879 | ||
Operating taxes | 106,286 | 92,330 | ||
Income taxes | 27,489 | 27,909 | ||
Interest | 35,875 | 33,509 | ||
Deposits, mainly from customers | 69,707 | 65,317 | ||
Deferred revenue | 14,388 | 11,759 | ||
Acquisition holdbacks | 6,061 | 6,004 | ||
Other | 65,141 | 68,044 | ||
Total | $ 1,323,137 | $ 1,297,021 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Short-term debt and current portion of long-term debt: | ||||
Short-term debt, weighted-average interest rate | 2.75% | 1.30% | ||
Short-term debt | $ 316,000 | $ 3,773,000 | ||
Current portion of long-term debt | 347,501,000 | 32,511,000 | ||
Total short-term debt and current portion of long-term debt | 347,817,000 | $ 35,452,000 | 36,284,000 | $ 272,203,000 |
Long-term debt: | ||||
Total before fair market value adjustment | 5,210,041,000 | 4,722,016,000 | ||
Fair market value adjustment on notes subject to hedging | 6,668,000 | 4,830,000 | ||
Total after fair market value adjustment | 5,216,709,000 | 4,726,846,000 | ||
Current portion of long-term debt | (347,501,000) | (32,511,000) | ||
Long-term debt | 4,869,208,000 | $ 4,880,638,000 | 4,694,335,000 | $ 4,022,975,000 |
Total debt | 5,217,025,000 | 4,730,619,000 | ||
Unamortized original issue discounts | 8,100,000 | 7,900,000 | ||
Aggregate notional amount of interest rate swaps | $ 600,000,000 | $ 600,000,000 | ||
U.S commercial paper [Member] | ||||
Long-term debt: | ||||
Long-term debt, weighted-average interest rate | 0.43% | 0.35% | ||
U.S. commercial paper | $ 311,432,000 | $ 276,694,000 | ||
Global revolving credit facility [Member] | ||||
Long-term debt: | ||||
Long-term debt, weighted-average interest rate | 2.78% | 1.60% | ||
Global revolving credit facility | $ 40,908,000 | $ 11,190,000 | ||
Unsecured U.S. notes - Medium-term notes [Member] | ||||
Long-term debt: | ||||
Long-term debt, weighted-average interest rate | 3.21% | 3.29% | ||
Unsecured U.S. notes - Medium-term notes | $ 4,111,991,000 | $ 3,772,159,000 | ||
Unsecured U.S. obligations [Member] | ||||
Long-term debt: | ||||
Long-term debt, weighted-average interest rate | 1.50% | 0.76% | ||
Unsecured U.S. obligations | $ 50,000,000 | $ 110,500,000 | ||
Unsecured foreign obligations [Member] | ||||
Long-term debt: | ||||
Long-term debt, weighted-average interest rate | 1.92% | 2.01% | ||
Unsecured foreign obligations | $ 295,217,000 | $ 295,776,000 | ||
Asset-backed U.S. obligations [Member] | ||||
Long-term debt: | ||||
Long-term debt, weighted-average interest rate | 1.79% | 1.81% | ||
Unsecured foreign obligations | $ 362,075,000 | $ 218,137,000 | ||
Capital lease obligations [Member] | ||||
Long-term debt: | ||||
Long-term debt, weighted-average interest rate | 1.79% | 1.73% | ||
Capital lease obligations | $ 38,418,000 | $ 37,560,000 |
Debt (Details Textual)
Debt (Details Textual) | 6 Months Ended | ||
Jun. 30, 2015USD ($)Institutions | May. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | |||
Number of lending institutions | Institutions | 12 | ||
Maximum borrowing capacity | $ 1,200,000,000 | ||
Annual facility fees, percentage | 0.10% | ||
Ratio of debt to consolidated net worth | 3 | ||
Debt to consolidated tangible net worth ratio | 209.00% | ||
Line of credit remaining capacity | $ 847,600,000 | ||
Current maturities classified as long-term debt | 338,400,000 | $ 698,500,000 | |
Trade receivables borrowings | 60,000,000 | ||
Cash proceeds on financing transaction backed by a portion of revenue earning equipment | 156,400,000 | ||
Total available proceeds under trade receivables purchase and sale program | $ 175,000,000 | ||
Number of days under trade receivables purchase and sale program | 364 days | ||
Letters of credit and surety bonds outstanding | $ 333,900,000 | 334,300,000 | |
U.S commercial paper [Member] | |||
Debt Instrument [Line Items] | |||
Commercial paper classified as long term debt | $ 311,432,000 | 276,694,000 | |
Unsecured Medium Term Notes Due May 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of unsecured medium-term notes issued | $ 300,000,000 | ||
Debt repurchase price, percentage | 101.00% | ||
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 75,000,000 | ||
Letter of credit outstanding amount | $ 0 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Annual facility fees, percentage | 0.075% | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Annual facility fees, percentage | 0.25% | ||
Asset-backed U.S. obligations [Member] | |||
Debt Instrument [Line Items] | |||
Debt | $ 362,076,000 | $ 218,137,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Losses | $ 3,252 | $ 2,515 | $ 5,623 | $ 6,190 |
Revenue earning equipment, Trucks [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Losses | 1,515 | 1,572 | 2,743 | 3,454 |
Revenue earning equipment, Tractors [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Losses | 1,081 | 662 | 1,908 | 2,294 |
Revenue earning equipment, Trailers [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Losses | 656 | 281 | 972 | 442 |
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets held for sale at fair value | 15,819 | 17,267 | 15,819 | 17,267 |
Fair Value, Inputs, 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 at fair value | 6,805 | 10,713 | 6,805 | 10,713 |
Fair Value, Inputs, 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 at fair value | 7,389 | 6,057 | 7,389 | 6,057 |
Fair Value, Inputs, 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 at fair value | $ 1,625 | $ 497 | $ 1,625 | $ 497 |
Fair Value Measurements (Deta55
Fair Value Measurements (Details Textual) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of total debt | $ 4,910 | $ 4,590 |
Derivatives (Details)
Derivatives (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | |||
Aggregate notional amount of interest rate swaps | $ 600,000,000 | $ 600,000,000 | |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest rate swaps maturing June 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Issuance date | May 24, 2011 | ||
Maturity date | Jun. 1, 2017 | ||
Face value of medium-term notes | $ 350,000,000 | ||
Aggregate notional amount of interest rate swaps | $ 150,000,000 | ||
Fixed interest rate | 3.50% | ||
Weighted-average variable interest rate on hedged debt | 1.49% | 1.42% | |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest rate swaps maturing November 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Issuance date | Nov. 12, 2013 | ||
Maturity date | Nov. 15, 2018 | ||
Face value of medium-term notes | $ 300,000,000 | ||
Aggregate notional amount of interest rate swaps | $ 100,000,000 | ||
Fixed interest rate | 2.45% | ||
Weighted-average variable interest rate on hedged debt | 1.23% | 1.18% | |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest rate swaps maturing June 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Issuance date | Feb. 25, 2014 | ||
Maturity date | Jun. 1, 2019 | ||
Face value of medium-term notes | $ 350,000,000 | ||
Aggregate notional amount of interest rate swaps | $ 100,000,000 | ||
Fixed interest rate | 2.55% | ||
Weighted-average variable interest rate on hedged debt | 1.15% | 1.10% | |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest rate swaps maturing September 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Issuance date | May 6, 2014 | ||
Maturity date | Sep. 3, 2019 | ||
Face value of medium-term notes | $ 400,000,000 | ||
Aggregate notional amount of interest rate swaps | $ 100,000,000 | ||
Fixed interest rate | 2.45% | ||
Weighted-average variable interest rate on hedged debt | 0.90% | 0.85% | |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest rate swaps maturing March 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Issuance date | Feb. 24, 2015 | ||
Maturity date | Mar. 2, 2020 | ||
Face value of medium-term notes | $ 400,000,000 | ||
Aggregate notional amount of interest rate swaps | $ 150,000,000 | ||
Fixed interest rate | 2.65% | ||
Weighted-average variable interest rate on hedged debt | 1.14% | 0.00% |
Share Repurchase Programs (Deta
Share Repurchase Programs (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Accelerated Share Repurchases [Line Items] | ||
Common stock repurchases | $ 6,141 | |
December 2013 Anti-Dilutive Share Repurchase Program [Member] | ||
Accelerated Share Repurchases [Line Items] | ||
Common stock repurchases | $ 6,100 | $ 79,500 |
Common Stock [Member] | ||
Accelerated Share Repurchases [Line Items] | ||
Repurchased and retired shares | 69,107 | |
Common stock repurchases | $ 35 | |
Common Stock [Member] | December 2013 Anti-Dilutive Share Repurchase Program [Member] | ||
Accelerated Share Repurchases [Line Items] | ||
Maximum number of share repurchases authorization (no more than 2 million) | 2,000,000 | |
Repurchased and retired shares | 69,107 | 1,027,072 |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive (Loss) [Roll Forward] | ||
Accumulated other comprehensive loss, beginning of period | $ (620,270) | $ (438,248) |
Amortization | 9,078 | 6,120 |
Other current period change: Currency translation adjustments and other | (35,666) | 9,633 |
Accumulated other comprehensive loss, end of period | (646,858) | (422,495) |
Currency Translation Adjustments and Other [Member] | ||
Accumulated Other Comprehensive (Loss) [Roll Forward] | ||
Accumulated other comprehensive loss, beginning of period | (36,087) | 35,875 |
Amortization | 0 | 0 |
Other current period change: Currency translation adjustments and other | 30,345 | (11,681) |
Accumulated other comprehensive loss, end of period | (66,432) | 47,556 |
Net Actuarial Loss [Member] | ||
Accumulated Other Comprehensive (Loss) [Roll Forward] | ||
Accumulated other comprehensive loss, beginning of period | (585,941) | (477,883) |
Amortization | 9,790 | 7,455 |
Other current period change: Net actuarial loss and prior service credit | (5,321) | (2,048) |
Accumulated other comprehensive loss, end of period | (581,472) | (472,476) |
Prior Service Credit [Member] | ||
Accumulated Other Comprehensive (Loss) [Roll Forward] | ||
Accumulated other comprehensive loss, beginning of period | 1,758 | 3,760 |
Amortization | (712) | (1,335) |
Other current period change: Net actuarial loss and prior service credit | 0 | 0 |
Accumulated other comprehensive loss, end of period | $ 1,046 | $ 2,425 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Amortization of: | ||||
Contribution to pension plans | $ 7,900 | |||
Estimated total contributions | 36,000 | |||
Pension Benefits [Member] | ||||
Amortization of: | ||||
Net periodic benefit cost (credit) | $ 10,296 | $ 6,289 | 20,814 | $ 14,423 |
Company Administered Plan [Member] | Pension Benefits [Member] | ||||
Components of net periodic benefit cost | ||||
Service cost | 3,566 | 3,171 | 7,193 | 6,594 |
Interest cost | 22,048 | 25,135 | 43,935 | 50,696 |
Expected return on plan assets | (25,021) | (29,284) | (49,921) | (58,002) |
Amortization of: | ||||
Net actuarial loss (gain) | 7,664 | 5,579 | 15,472 | 11,814 |
Prior service credit | (74) | (435) | (150) | (893) |
Net periodic benefit cost (credit) | 8,183 | 4,166 | 16,529 | 10,209 |
Company Administered Plan [Member] | Pension Benefits U.S. [Member] | ||||
Amortization of: | ||||
Net periodic benefit cost (credit) | 8,599 | 4,499 | 17,491 | 10,786 |
Company Administered Plan [Member] | Pension Benefits Non-U.S. [Member] | ||||
Amortization of: | ||||
Net periodic benefit cost (credit) | (416) | (333) | (962) | (577) |
Company Administered Plan [Member] | Postretirement Benefits [Member] | ||||
Components of net periodic benefit cost | ||||
Service cost | 79 | 89 | 190 | 224 |
Interest cost | 275 | 348 | 559 | 713 |
Amortization of: | ||||
Net actuarial loss (gain) | (278) | (234) | (474) | (363) |
Prior service credit | (478) | (615) | (956) | (1,230) |
Net periodic benefit cost (credit) | (402) | (412) | (681) | (656) |
Company Administered Plan [Member] | Postretirement Benefits U.S [Member] | ||||
Amortization of: | ||||
Net periodic benefit cost (credit) | (531) | (524) | (946) | (921) |
Company Administered Plan [Member] | Postretirement Benefits Non-U.S [Member] | ||||
Amortization of: | ||||
Net periodic benefit cost (credit) | 129 | 112 | 265 | 265 |
Union Administered Plan [Member] | Pension Benefits [Member] | ||||
Amortization of: | ||||
Net periodic benefit cost (credit) | $ 2,113 | $ 2,123 | $ 4,285 | $ 4,214 |
Other Items Impacting Compara60
Other Items Impacting Comparability (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total | Total |
Other Income and Expenses [Abstract] | ||
Professional fees associated with cost savings initiatives | $ 1.9 | $ 3.8 |
Supplemental Cash Flow Inform61
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Supplemental cash flow information | ||
Interest paid | $ 69,681 | $ 69,834 |
Income taxes paid | 9,970 | 7,332 |
Changes in accounts payable related to purchases of revenue earning equipment | 124,766 | 1,520 |
Operating and revenue earning equipment acquired under capital leases | 5,847 | 2,371 |
Acquisition payments | $ 0 | $ 1,649 |
Miscellaneous Income, Net (Deta
Miscellaneous Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other Income and Expenses [Abstract] | ||||
Rabbi trust investment income | $ 119 | $ 1,077 | $ 1,186 | $ 1,577 |
Insurance proceeds | 0 | 756 | 314 | 756 |
Foreign currency translation | 137 | 23 | 266 | (383) |
Gain on sales of operating property and equipment | 27 | 1,286 | 81 | 2,590 |
Contract settlement | 41 | 0 | 56 | 2,908 |
Other, net | 704 | 1,686 | 1,762 | 2,762 |
Total | $ 1,028 | $ 4,828 | $ 3,665 | $ 10,210 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 1,662,931 | $ 1,684,571 | $ 3,230,084 | $ 3,295,308 | |||||||
Segment EBT | 150,998 | 133,758 | 253,841 | 222,947 | |||||||
Unallocated CSS | (10,924) | (12,125) | (22,866) | (22,954) | |||||||
Non-operating pension costs | (4,688) | (1,544) | (9,571) | (4,858) | |||||||
Restructuring and other recoveries, net and other items | (1,939) | (3,780) | |||||||||
Earnings from continuing operations before income taxes | 133,447 | $ 84,177 | $ 129,608 | 120,089 | $ 75,046 | 217,624 | 195,135 | $ 324,743 | $ 338,267 | $ 369,014 | $ 302,768 |
Segment capital expenditures paid | 765,758 | 627,387 | 1,311,197 | 1,199,498 | |||||||
Unallocated CSS | 10,218 | 49,113 | 18,021 | 55,724 | |||||||
Capital expenditures paid | 775,976 | 676,500 | 1,329,218 | 1,255,222 | |||||||
Acquisition payments | 0 | 1,649 | |||||||||
Fleet Management Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 1,149,349 | 1,181,222 | 2,236,499 | 2,316,309 | |||||||
Dedicated Transportation Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 223,514 | 234,014 | 436,173 | 449,976 | |||||||
Supply Chain Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 396,941 | 393,565 | 767,995 | 774,944 | |||||||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | (106,873) | (124,230) | (210,583) | (245,921) | |||||||
Segment EBT | (11,588) | (10,523) | (23,122) | (20,151) | |||||||
Segment capital expenditures paid | 0 | 0 | 0 | 0 | |||||||
Intersegment Eliminations [Member] | Fleet Management Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 106,873 | 124,230 | 210,583 | 245,921 | |||||||
Intersegment Eliminations [Member] | Dedicated Transportation Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | 0 | |||||||
Intersegment Eliminations [Member] | Supply Chain Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | 0 | |||||||
Operating Segments [Member] | Fleet Management Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 1,042,476 | 1,056,992 | 2,025,916 | 2,070,388 | |||||||
Segment EBT | 122,452 | 212,170 | |||||||||
Segment capital expenditures paid | 761,542 | 623,138 | 1,300,285 | 1,191,377 | |||||||
Operating Segments [Member] | Dedicated Transportation Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 223,514 | 234,014 | 436,173 | 449,976 | |||||||
Segment EBT | 12,435 | 12,998 | 21,405 | 21,684 | |||||||
Segment capital expenditures paid | 646 | 408 | 1,355 | 658 | |||||||
Operating Segments [Member] | Supply Chain Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 396,941 | 393,565 | 767,995 | 774,944 | |||||||
Segment EBT | 27,699 | 17,730 | 43,388 | 30,828 | |||||||
Segment capital expenditures paid | $ 3,570 | $ 3,841 | $ 9,557 | $ 7,463 |
Other Matters (Details)
Other Matters (Details) $ in Millions | Jun. 30, 2015USD ($) |
Tax Year 1997 and 1998 [Member] | Brazil state operating tax [Member] | |
Loss Contingencies [Line Items] | |
Tax amounts assessed but not reserved | $ 5 |