Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2019shares | |
Cover page. | |
Document Transition Report | false |
Document Quarterly Report | true |
Title of 12(b) Security | Common Stock |
Entity Incorporation, State or Country Code | FL |
Entity Registrant Name | RYDER SYSTEM, INC. |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Entity Central Index Key | 0000085961 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Entity File Number | 1-4364 |
Document Period End Date | Sep. 30, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Entity Common Stock, Shares Outstanding (in shares) | 53,292,045 |
Entity Tax Identification Number | 59-0739250 |
Entity Address, Address Line One | 11690 N.W. 105th Street |
Entity Address, City or Town | Miami, |
Entity Address, State or Province | FL |
Entity Address, Postal Zip Code | 33178 |
Trading Symbol | R |
Security Exchange Name | NYSE |
City Area Code | (305) |
Local Phone Number | 500-3726 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Earnings - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Lease & related maintenance and rental revenues | $ 959,189 | $ 896,788 | $ 2,792,581 | $ 2,580,369 |
Total revenues | 2,223,932 | 2,159,682 | 6,649,252 | 6,153,791 |
Other operating expenses | 28,924 | 30,020 | 92,213 | 93,682 |
Selling, general and administrative expenses | 216,037 | 215,599 | 673,778 | 636,039 |
Non-operating pension costs | 6,885 | 1,161 | 20,060 | 3,241 |
Used vehicle sales, net | 22,734 | 3,203 | 49,091 | 16,193 |
Interest expense | 62,475 | 47,846 | 178,570 | 128,757 |
Miscellaneous (income) loss, net | 676 | (4,483) | (29,457) | (10,633) |
Restructuring and other items, net | 11,360 | (546) | 27,374 | 17,349 |
Total expenses | 2,040,819 | 6,569,292 | 5,880,335 | |
Earnings (loss) from continuing operations before income taxes | (91,260) | 118,863 | 79,960 | 273,456 |
Provision for income taxes | 278 | 27,261 | 50,156 | 98,372 |
Earnings (loss) from continuing operations | (91,538) | 91,602 | 29,804 | 175,084 |
Earnings (loss) from discontinued operations, net of tax | 83 | (760) | (728) | (2,448) |
Net earnings (loss) | $ (91,455) | $ 90,842 | $ 29,076 | $ 172,636 |
Earnings (loss) per common share — Basic: | ||||
Continuing operations (in dollars per share) | $ (1.75) | $ 1.74 | $ 0.56 | $ 3.33 |
Discontinued operations (in dollars per share) | 0 | (0.01) | (0.02) | (0.05) |
Net earnings (loss) (in dollars per share) | (1.75) | 1.73 | 0.55 | 3.28 |
Earnings (loss) per common share — Diluted: | ||||
Continuing operations (in dollars per share) | (1.75) | 1.73 | 0.56 | 3.31 |
Discontinued operations (in dollars per share) | 0 | (0.01) | (0.02) | (0.05) |
Net earnings (loss) (in dollars per share) | $ (1.75) | $ 1.72 | $ 0.55 | $ 3.26 |
Service | ||||
Total revenues | $ 1,120,900 | $ 1,106,107 | $ 3,412,048 | $ 3,106,575 |
Cost of services sold | 948,087 | 947,925 | 2,896,182 | 2,644,775 |
Fuel Services | ||||
Total revenues | 143,843 | 156,787 | 444,623 | 466,847 |
Cost of services sold | 140,247 | 153,420 | 431,885 | 455,874 |
Lease, Related Maintenance and Rental | ||||
Cost of services sold | $ 877,767 | $ 646,674 | $ 2,229,596 | $ 1,895,058 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ (91,455) | $ 90,842 | $ 29,076 | $ 172,636 |
Other comprehensive income (loss): | ||||
Changes in currency translation adjustment and other | (21,812) | 6,367 | (13,813) | (21,866) |
Amortization of pension and postretirement items | 7,735 | 7,163 | 22,580 | 20,793 |
Income tax expense related to amortization of pension and postretirement items | (1,689) | (1,897) | (5,084) | (4,771) |
Amortization of pension and postretirement items, net of tax | 6,046 | 5,266 | 17,496 | 16,022 |
Change in net actuarial loss and prior service cost | 0 | 0 | (9,440) | (1,211) |
Income tax benefit related to change in net actuarial loss and prior service cost | 0 | 0 | 2,237 | 308 |
Change in net actuarial loss and prior service cost, net of taxes | 0 | 0 | (7,203) | (903) |
Other comprehensive income (loss), net of taxes | (15,766) | 11,633 | (3,520) | (6,747) |
Comprehensive income | $ (107,221) | $ 102,475 | $ 25,556 | $ 165,889 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 75,867 | $ 68,111 |
Receivables, net of allowance of $19,843 and $17,182, respectively | 1,274,492 | 1,242,058 |
Inventories | 83,226 | 79,228 |
Prepaid expenses and other current assets | 138,553 | 178,313 |
Total current assets | 1,572,138 | 1,567,710 |
Revenue earning equipment, net | 10,428,451 | 9,415,961 |
Operating property and equipment, net of accumulated depreciation of $1,236,227 and $1,256,037, respectively | 891,689 | 862,054 |
Goodwill | 474,814 | 475,206 |
Intangible assets, net of accumulated amortization of $71,298 and $65,048, respectively | 52,742 | 59,075 |
Sales-type leases and other assets | 1,063,010 | 967,802 |
Total assets | 14,482,844 | 13,347,808 |
Current liabilities: | ||
Short-term debt and current portion of long-term debt | 940,691 | 937,131 |
Accounts payable | 742,868 | 731,876 |
Accrued expenses and other current liabilities | 849,293 | 847,739 |
Total current liabilities | 2,532,852 | 2,516,746 |
Long-term debt | 6,805,886 | 5,712,146 |
Other non-current liabilities | 1,451,415 | 1,402,625 |
Deferred income taxes | 1,215,704 | 1,179,723 |
Total liabilities | 12,005,857 | 10,811,240 |
Shareholders’ equity: | ||
Preferred stock, no par value per share — authorized, 3,800,917; none outstanding, September 30, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.50 par value per share — authorized, 400,000,000; outstanding, September 30, 2019 — 53,292,045 and December 31, 2018 — 53,116,485 | 26,665 | 26,559 |
Additional paid-in capital | 1,103,120 | 1,084,391 |
Retained earnings | 2,262,356 | 2,337,252 |
Accumulated other comprehensive loss | (915,154) | (911,634) |
Total shareholders’ equity | 2,476,987 | 2,536,568 |
Total liabilities and shareholders’ equity | $ 14,482,844 | $ 13,347,808 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 19,843 | $ 17,182 |
Accumulated depreciation | 1,236,227 | 1,256,037 |
Accumulated amortization | $ 71,298 | $ 65,048 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 3,800,917 | 3,800,917 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares outstanding (in shares) | 53,292,045 | 53,116,485 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities from continuing operations: | ||
Net earnings | $ 29,076 | $ 172,636 |
Less: Loss from discontinued operations, net of tax | (728) | (2,448) |
Earnings from continuing operations | 29,804 | 175,084 |
Depreciation expense | 1,342,746 | 1,021,984 |
Goodwill impairment charge | 0 | 15,513 |
Used vehicle sales, net | 49,091 | 16,193 |
Amortization expense and other non-cash charges, net | 125,289 | 104,871 |
Non-operating pension costs and share-based compensation expense | 41,737 | 22,072 |
Deferred income tax expense | 32,157 | 105,893 |
Collections on sales-type leases | 89,995 | 63,335 |
Changes in operating assets and liabilities: | ||
Receivables | (17,784) | (126,848) |
Inventories | (3,869) | (4,389) |
Prepaid expenses and other assets | (19,439) | (104,473) |
Accounts payable | (30,241) | 3,754 |
Accrued expenses and other non-current liabilities | (50,300) | (17,429) |
Net cash provided by operating activities from continuing operations | 1,589,186 | 1,275,560 |
Cash flows from financing activities from continuing operations: | ||
Net borrowings (repayments) of commercial paper and revolving credit facilities | 182,708 | (113,666) |
Debt proceeds | 2,238,622 | 1,467,528 |
Debt repaid | (1,334,044) | (471,700) |
Dividends on common stock | (87,039) | (83,506) |
Common stock issued | 5,554 | 13,023 |
Common stock repurchased | (24,426) | (27,680) |
Debt issuance costs and other items | (4,815) | (4,763) |
Net cash provided by financing activities from continuing operations | 976,560 | 779,236 |
Cash flows from investing activities from continuing operations: | ||
Purchases of property and revenue earning equipment | (2,957,232) | (2,200,006) |
Sales of revenue earning equipment | 353,743 | 279,751 |
Sales of operating property and equipment | 49,726 | 11,869 |
Acquisitions, net of cash acquired | 0 | (167,372) |
Net cash used in investing activities from continuing operations | (2,553,763) | (2,075,758) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (3,254) | 1,464 |
Increase (decrease) in cash, cash equivalents, and restricted cash from continuing operations | 8,729 | (19,498) |
Decrease in cash, cash equivalents, and restricted cash from discontinued operations | (973) | (272) |
Increase (decrease) in cash, cash equivalents, and restricted cash | 7,756 | (19,770) |
Cash, cash equivalents, and restricted cash at January 1 | 68,111 | 83,022 |
Cash, cash equivalents, and restricted cash at September 30 | $ 75,867 | $ 63,252 |
Consolidated Condensed Statem_4
Consolidated Condensed Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |||
Beginning balance at Dec. 31, 2017 | $ 2,453,577 | $ 0 | $ 26,478 | $ 1,051,017 | $ 2,086,918 | $ (710,836) | |||
Beginning balance, shares at Dec. 31, 2017 | 52,955,314 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income | 165,889 | 172,636 | (6,747) | ||||||
Common stock dividends declared and paid | (83,889) | (83,889) | |||||||
Common stock issued under employee stock option and stock purchase plans | [1] | 12,970 | $ 250 | 12,720 | |||||
Common stock issued under employee stock option and stock purchase plans (in shares) | [1] | 501,183 | |||||||
Benefit plan stock sales (purchases), net | [2] | 52 | 52 | ||||||
Benefit plan stock sales (purchases), net (in shares) | [2] | 505 | |||||||
Common stock repurchases | (27,680) | $ (184) | (7,209) | (20,287) | |||||
Common stock repurchases (in shares) | (368,889) | ||||||||
Share-based compensation | 18,831 | 18,831 | |||||||
Ending balance at Sep. 30, 2018 | 2,539,750 | 0 | $ 26,544 | 1,075,411 | 2,255,945 | (818,150) | |||
Ending balance, shares at Sep. 30, 2018 | 53,088,113 | ||||||||
Beginning balance at Jun. 30, 2018 | 2,460,859 | 0 | $ 26,547 | 1,062,561 | 2,201,534 | (829,783) | |||
Beginning balance, shares at Jun. 30, 2018 | 53,094,736 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income | 102,475 | 90,842 | 11,633 | ||||||
Common stock dividends declared and paid | (28,663) | (28,663) | |||||||
Common stock issued under employee stock option and stock purchase plans | 8,362 | $ 64 | [1] | 8,298 | [1] | ||||
Common stock issued under employee stock option and stock purchase plans (in shares) | [1] | 127,911 | |||||||
Benefit plan stock sales (purchases), net | (3) | $ 0 | [2] | (3) | [2] | ||||
Benefit plan stock sales (purchases), net (in shares) | [2] | (40) | |||||||
Common stock repurchases | (10,459) | $ (67) | (2,624) | (7,768) | |||||
Common stock repurchases (in shares) | (134,494) | ||||||||
Share-based compensation | 7,179 | 7,179 | |||||||
Ending balance at Sep. 30, 2018 | 2,539,750 | 0 | $ 26,544 | 1,075,411 | 2,255,945 | (818,150) | |||
Ending balance, shares at Sep. 30, 2018 | 53,088,113 | ||||||||
Beginning balance at Dec. 31, 2018 | $ 2,536,568 | 0 | $ 26,559 | 1,084,391 | 2,337,252 | (911,634) | |||
Beginning balance, shares at Dec. 31, 2018 | 53,116,485 | 53,116,485 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income | $ 25,556 | 29,076 | (3,520) | ||||||
Common stock dividends declared and paid | (87,942) | (87,942) | |||||||
Common stock issued under employee stock option and stock purchase plans | [1] | 5,556 | $ 310 | 5,246 | |||||
Common stock issued under employee stock option and stock purchase plans (in shares) | [1] | 583,329 | |||||||
Benefit plan stock sales (purchases), net | [2] | (2) | (2) | ||||||
Benefit plan stock sales (purchases), net (in shares) | [2] | 40 | |||||||
Common stock repurchases | (24,426) | $ (204) | (8,192) | (16,030) | |||||
Common stock repurchases (in shares) | (407,809) | ||||||||
Share-based compensation | 21,677 | 21,677 | |||||||
Ending balance at Sep. 30, 2019 | $ 2,476,987 | 0 | $ 26,665 | 1,103,120 | 2,262,356 | (915,154) | |||
Ending balance, shares at Sep. 30, 2019 | 53,292,045 | 53,292,045 | |||||||
Beginning balance at Jun. 30, 2019 | $ 2,607,706 | 0 | $ 26,667 | 1,094,807 | 2,385,620 | (899,388) | |||
Beginning balance, shares at Jun. 30, 2019 | 53,334,512 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income | (107,221) | (91,455) | (15,766) | ||||||
Common stock dividends declared and paid | (29,886) | (29,886) | |||||||
Common stock issued under employee stock option and stock purchase plans | [1] | 2,840 | $ 29 | 2,811 | |||||
Common stock issued under employee stock option and stock purchase plans (in shares) | [1] | 20,238 | |||||||
Benefit plan stock sales (purchases), net | [2] | (1) | (1) | ||||||
Benefit plan stock sales (purchases), net (in shares) | [2] | (10) | |||||||
Common stock repurchases | (3,206) | $ (31) | (1,252) | (1,923) | |||||
Common stock repurchases (in shares) | (62,695) | ||||||||
Share-based compensation | 6,755 | 6,755 | |||||||
Ending balance at Sep. 30, 2019 | $ 2,476,987 | $ 0 | $ 26,665 | $ 1,103,120 | $ 2,262,356 | $ (915,154) | |||
Ending balance, shares at Sep. 30, 2019 | 53,292,045 | 53,292,045 | |||||||
[1] | Net of common shares delivered as payment for the exercise price or to satisfy the holders’ withholding tax liability upon exercise of options. | ||||||||
[2] | Represents open-market transactions of common shares by the trustee of Ryder’s deferred compensation plans. |
Consolidated Condensed Statem_5
Consolidated Condensed Statement of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.56 | $ 0.54 | $ 1.64 | $ 1.58 |
GENERAL
GENERAL | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
GENERAL | GENERAL 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 2018 Annual Report on Form 10-K and should be read in conjunction with the Consolidated Financial Statements and notes thereto except for the update to our significant accounting policies for revenue recognition, leases and goodwill discussed below. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments (consisting of normal recurring accruals) 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. Update to Significant Accounting Policies Our significant accounting policies are detailed in "Note 1: Summary of Significant Accounting Policies" within Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2018. As discussed in Note 2, "Recent Accounting Pronouncements," effective January 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) using the modified retrospective transition comparative method. We have recast all prior period amounts in this Form 10-Q to conform to the current period presentation based on our adoption of this new accounting standard. Refer to Note 2, "Recent Accounting Pronouncements," for additional information on the revised amounts. The significant changes to our accounting policies as a result of adopting Topic 842 are discussed below. Revenue Recognition Lease & related maintenance and rental revenues includes ChoiceLease and commercial rental revenues from our Fleet Management Solutions (FMS) business segment. We offer a full service lease as well as a lease with more flexible maintenance options under our ChoiceLease product line, which are marketed, priced and managed as bundled products, that include the equipment lease, maintenance and other related services. We do not offer a stand-alone unbundled lease of new vehicles. We offer rental of vehicles under our commercial rental product line, which allows customers to supplement their fleet of vehicles on a short-term basis. Our ChoiceLease product includes the lease of a vehicle (lease component) and the executory agreement for the maintenance, insurance, taxes and other services (non-lease components) related to the leased vehicles during the lease term. We generally lease new vehicles to our customers. Consideration is allocated between the lease component and non-lease component based on management's best estimate of the relative stand-alone selling price of each component. Our ChoiceLease product provides for a fixed charge billing and a variable charge billing based on mileage or time usage. Fixed charges are typically billed at the beginning of the month and variable charges are typically billed a month in arrears. Revenue from the lease component of ChoiceLease agreements is recognized based on the classification of the arrangement, typically as either an operating or a sales-type lease. Our commercial rental product includes the short-term rental of a vehicle (one day up to one year in length). All of our rental arrangements are classified as operating leases and revenue is recognized on a straight-line basis. The majority of our leases are classified as operating leases and we recognize revenue for the lease component of the product line on a straight-line basis. The non-lease component for maintenance services is accounted for in accordance with revenue guidance in Revenue from Contracts with Customers (Topic 606) . Maintenance services are not typically performed evenly over the life of a ChoiceLease contract as the level of maintenance provided generally increases as vehicles age. We recognize maintenance revenue using an input method, consistent with the estimated pattern of the costs to maintain the underlying vehicles. This will generally result in the recognition of a contract liability for some portion of the customer's payments allocated to the maintenance service component of the arrangement. Included in lease & related maintenance and rental revenues is non-lease revenue from maintenance services of $235 million and $229 million for the three months ended September 30, 2019 and 2018, respectively, and $710 million and $677 million for the nine months ended September 30, 2019 and 2018, respectively. Effective with the adoption of Topic 842, we recorded an after-tax cumulative effect adjustment to decrease retained earnings as of January 1, 2017, by approximately $315 million primarily to recognize a contract liability (deferred revenue) related to maintenance services, which was partially offset by costs capitalized related to sales commissions. We recorded deferred revenue of $573 million and $566 million as of September 30, 2019 and December 31, 2018, respectively, related to the maintenance services component of our ChoiceLease product line. We also recorded capitalized sales commissions of $92 million and $93 million as of September 30, 2019 and December 31, 2018, respectively. Included in capitalized sales commissions are initial direct costs of our leases of $55 million and $53 million as of September 30, 2019 and December 31, 2018 related to incremental sales commissions paid to our sales force as a result of obtaining ChoiceLease contracts. Refer to Note 3, "Revenue," and Note 5, "Accrued Expenses and Other Liabilities" for further information. Lease and rental agreements do not usually provide for scheduled rent increases or escalations. However, most lease agreements allow for rate changes based upon changes in the Consumer Price Index (CPI). Lease and rental agreements also provide for vehicle usage charges based on a time charge and/or a fixed per-mile charge. The time charge, the per-mile charge and the changes in rates attributed to changes in the CPI are considered contingent rentals and are not considered fixed or determinable until the equipment usage or CPI change occurs. This consideration is allocated to the lease and non-lease components of the contract as it is billed to the customer based on the allocation determined at contract inception. Variable consideration allocated to the lease component is recognized in revenue on a straight-line basis for the remainder of the contract term and variable consideration allocated to the non-lease component is recognized in revenue using an input method, consistent with the estimated pattern of maintenance costs for the remainder of the contract term. Leases not classified as operating leases are generally considered sales-type leases. We recognize revenue for sales-type leases using the effective interest method, which provides a constant periodic rate of return on the outstanding investment in the lease. We generally lease new vehicles under our sales-type lease arrangements. Therefore, there is generally not a difference between the net investment in the lease and the carrying value of the vehicles, and we do not recognize selling profit or loss at lease commencement. Revenue is recognized net of amounts collected from customers for taxes, such as sales tax, that are remitted to the applicable taxing authorities. Significant Judgments and Estimates We allocate the contract consideration (excluding insurance) between the lease and maintenance components based on the relative standalone selling prices of each of those services and allocate contract consideration for insurance based on the price of insurance, which is priced separately. If the lessee elects to obtain insurance coverage from us, the consideration for the fixed monthly rate is allocated to the insurance performance obligations. Allocating consideration between lease and non-lease components in our ChoiceLease product requires significant judgment. We do not sell the components of our ChoiceLease product offering on a stand-alone basis. Judgment is required to determine the stand-alone selling prices of the lease and non-lease components in order to allocate the consideration on a relative stand-alone selling price basis. We determine the stand-alone price of the lease component using the projected cash flows of the lease assuming a certain targeted return. We consider a number of factors to determine the targeted return, including the net present value of the projected cash flows in a ChoiceLease arrangement discounted at our weighted average cost of capital. Our ChoiceLease arrangements include maintenance as a non-lease component of the contract. We determine the standalone price of the maintenance component using an expected cost plus margin approach. The expected costs are based on our historical costs of providing maintenance services in our ChoiceLease arrangements. The margin is based on historical margin percentages for our full service maintenance contracts in the SelectCare product line, as the maintenance performance obligation in those contracts is similar to maintenance in our ChoiceLease arrangements. Full service maintenance arrangements in SelectCare are priced based on targeted margin percentages for new and used vehicles by type of vehicle (trucks, tractors, and trailers), considering the fixed and variable costs of providing maintenance services. Certain ChoiceLease products include liability and/or physical damage insurance coverage to our customers. We charge a separate fixed monthly rate for these insurance offerings, which represents the standalone selling price. Variable consideration, such as billings for mileage and from changes in CPI, is excluded from the allocation of consideration at the inception of the contract. Revenues associated with licensing and operating taxes that are billed as incurred based on the contract arrangement are also excluded from the allocation of consideration at contract inception and allocated as earned. The variable consideration and licensing and operating tax revenues are allocated to the lease and maintenance components based on the same allocation percentages at contract inception (or the most recent contract modification) when earned. Contract Balances We do not have material contract assets as we generally invoice customers as we perform services. Contract receivables are recorded in “Receivables, net” in the Consolidated Condensed Balance Sheets. Payment terms vary by contract type, although terms generally include a requirement of payment within 15 to 90 days. As a practical expedient, we do not assess whether a contract has a significant financing component as the period between the receipt of customer payment and the transfer of service to the customer is less than a year. Our contract liabilities consist of deferred revenue related to maintenance services. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts that are refundable. We classify deferred revenue for performance obligations we expect to perform within 12 months as current liabilities and for performance obligations to be performed later than 12 months as other non-current liabilities. Revenue is recognized upon satisfaction of the performance obligation. As practical expedients, we do not disclose information about remaining performance obligations that are part of a contract that has an original expected duration of one year or less, and we do not disclose information about remaining performance obligations when we have the right to invoice the customer and the revenue recognized corresponds directly with the value to the customer of our performance completed to date. Leases Leases as Lessor We lease revenue earning equipment to customers for periods generally ranging from three Leases as Lessee We lease facilities, revenue earning equipment, material handling equipment, automated washing machines, vehicles and office equipment. We determine if an arrangement is or contains a lease at inception. Effective with the adoption of Topic 842, we have established right-of-use (ROU) assets, which represent our right to use an underlying asset for the lease term and lease liabilities, which represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate of return, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Operating lease ROU assets also exclude lease incentives received. We pay variable lease charges related to property taxes, insurance and maintenance as well as changes in CPI for leased facilities; usage-based fees for revenue earning equipment, automated washing machines, vehicles and office equipment; and hours of operation for material handling equipment. For leases with a term of 12 months or less, with the exception of our real estate leases, we recognize lease payments in our income statement on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. Lease terms for the facilities are generally three five three Goodwill In the third quarter of 2019, we performed an interim impairment test of our FMS North America reporting unit (“FMS NA”) as a result of the decline in market conditions and our updated outlook primarily in the used vehicle market, which negatively affects our forecasted cash flows from the sale of used vehicles. Our valuation of fair value for FMS NA was determined based on a discounted future cash flow model (income approach) and the application of current market multiples for comparable publicly-traded companies (market approach). There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of goodwill impairment. Based on our analysis, we determined that FMS NA goodwill was not impaired as of September 30, 2019. However, the fair value of FMS NA was not substantially in excess of its carrying amount. The estimated fair value of the FMS NA reporting unit exceeded its carrying value by approximately 5%. Given this level of excess fair value, in the event the financial performance of FMS NA does not meet our expectations in the future; we experience future prolonged market downturns, including in the used vehicle market; or other negative revisions to key assumptions, we may be required to perform additional impairment analyses and could be required to recognize a non-cash goodwill impairment charge. As of September 30, 2019, there was $244 million of goodwill recorded related to FMS NA. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Cloud Computing Arrangements In August 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal Use Software (Topic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which amends Accounting Standards Codification (ASC) 350-40 to address a customer’s accounting for implementation costs incurred in a cloud computing arrangement (CCA) that is a service contract. ASU 2018-15 aligns the accounting for costs incurred to implement a CCA that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Entities are permitted to apply either a retrospective or prospective approach to adopt the guidance. We are currently evaluating the impact of the adoption of this update on our consolidated financial position, results of operations, and cash flows. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) . This pronouncement, along with ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments issued to clarify certain provisions of these ASUs, simplifies and clarifies the accounting and disclosure for hedging activities by more closely aligning the results of cash flow and fair value hedge accounting with the risk management activities of an entity. The amendments in this update are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. We adopted this standard during the first quarter of 2019 and it did not impact our consolidated financial position, results of operations, or cash flows. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326). This pronouncement, along with subsequent ASUs issued to clarify certain provisions of ASU 2016-13, modifies the measurement of expected credit losses of certain financial instruments, including our accounts receivable and net investments in sales-type leases. Among other things, these amendments require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The standard requires a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period in which the guidance is effective. Periods prior to the adoption date that are presented for comparative purposes are not adjusted. We are currently evaluating the impact of the adoption of this update on our consolidated financial position, results of operations, and cash flows. Leases In February 2016, the FASB issued Topic 842, which sets out the principles for the identification, measurement, recognition, presentation and disclosure of leases. The FASB issued a number of subsequent updates to the standard. Topic 842 impacts the accounting for both lessors and lessees. We have adopted the standard effective January 1, 2019, using the modified retrospective transition method and initial application date of January 1, 2017. For all our facilities and equipment that we lease, we have elected the practical expedient to combine lease and non-lease components. For our existing operating and finance leases that commenced before the date of initial application where we are the lessee, we have made an accounting policy election to use the incremental borrowing rate for our leases considering the remaining lease term and remaining minimum rental payments. After lease commencement of our operating leases where we are the lessee, unless the ROU assets are impaired, we have made an accounting policy election to subsequently measure operating lease ROU assets by amortizing the ROU assets, calculated as the difference between the straight line cost for the period (including amortization of initial direct costs) and the periodic accretion of the lease liability using the effective interest method. In calculating the change in ROU assets from a lease modification that decreases our rights as lessee to use one or more underlying assets, we have made an accounting policy election of remeasuring the ROU asset based on how much of the original right of use remains after modification. The new standard requires lessors to identify and evaluate the lease and non-lease components in arrangements containing a lease, provides clarification on the scope of non-lease components and provides more guidance on how to identify and separate the components. From a lessor perspective, the adoption of the new lease standard primarily impacts our ChoiceLease product line, which includes a vehicle lease as well as maintenance and other services. The standard requires lessees to classify leases as either finance or operating leases. This classification determines whether the related expense is recognized based on asset amortization and interest on the obligation (finance leases) or on a straight-line basis over the term of the lease (operating lease). We recorded a ROU asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. We have elected the practical expedient in Topic 842 to not apply these recognition requirements to leases with a term of 12 months or less with the exception of our real estate leases. Instead we recognize the lease payments on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. Adoption of the new lease standard impacted our previously reported Consolidated Condensed Statements of Earnings and Comprehensive Income as follows (in millions, except per share amounts): Three months ended September 30, 2018 Nine months ended September 30, 2018 As Previously Lessor Lessee and Other As Previously Lessor Lessee and Other Reported Adjustments (1) Adjustments (1) As Revised Reported Adjustments (1) Adjustments (1) As Revised Lease & related maintenance and rental revenues $ 895.2 1.2 0.4 896.8 $ 2,577.4 2.0 1.0 2,580.4 Total revenues 2,158.1 1.2 0.4 2,159.7 6,150.9 2.0 1.0 6,153.8 Cost of lease & related maintenance and rental 649.4 (2.7) — 646.7 1,905.0 (9.9) — 1,895.1 Cost of services (2) 945.9 — 2.1 947.9 2,639.1 — 5.6 2,644.8 Other operating expenses 30.3 — (0.3) 30.0 94.8 — (1.1) 93.7 Selling, general and administrative expenses (2) 215.5 0.9 (0.8) 215.6 637.3 1.0 (2.2) 636.0 Used vehicle sales, net 3.0 0.2 — 3.2 16.4 (0.2) — 16.2 Interest expense 47.4 — 0.5 47.8 127.5 — 1.2 128.8 Restructuring and other items, net (2) 0.3 — (0.9) (0.5) 19.7 — (2.4) 17.3 Earnings from continuing operations before income taxes 116.1 2.9 (0.2) 118.9 262.5 11.2 (0.2) 273.5 Provision for income taxes 26.6 0.6 — 27.3 95.6 2.8 — 98.4 Earnings from continuing operations 89.5 2.3 (0.2) 91.6 167.0 8.4 (0.2) 175.1 Net earnings 88.8 2.3 (0.2) 90.8 164.5 8.4 (0.2) 172.6 Comprehensive income 100.6 1.9 — 102.5 156.4 9.5 — 165.9 Earnings per common share - Basic Continuing operations $ 1.70 0.04 — 1.74 $ 3.18 0.15 — 3.33 Net earnings $ 1.69 0.04 — 1.73 $ 3.13 0.15 — 3.28 Earnings per common share - Diluted Continuing operations $ 1.69 0.04 — 1.73 $ 3.15 0.16 — 3.31 Net earnings $ 1.68 0.04 — 1.72 $ 3.11 0.16 — 3.26 ———————————— (1) We determined that in a prior period certain lessor arrangements of revenue earning equipment historically accounted for as operating leases should have been accounted for as direct financing leases. Additionally, we evaluated our leases for classification and determined that certain lessee arrangements, primarily real estate leases, historically accounted for as operating leases should have been accounted for as capital leases. The prior period error was corrected by reducing "Lease & related maintenance and rental revenues" by approximately $5 million and $14 million during the three and nine months ended September 30, 2018, respectively. We also reduced depreciation expense (included in "Cost of lease & related maintenance and rental") by approximately $5 million and $14 million during the three and nine months ended September 30, 2018, respectively. We concluded these errors were not material to any of our previously issued consolidated financial statements. (2) Adjustments primarily reflect the reclassification of our Singapore operations into "Restructuring and other items, net," that were shut down during 2019. Note: Amounts may not be additive due to rounding. Adoption of the new lease standard impacted our previously reported Consolidated Condensed Balance Sheet as follows (in millions): December 31, 2018 As Previously Lessor Lessee Reported Adjustments (1) Adjustments (1) As Revised Receivables, net $ 1,219.4 22.6 — 1,242.1 Prepaid expenses and other current assets 201.6 (23.3) — 178.3 Total current assets 1,568.4 (0.7) — 1,567.7 Revenue earning equipment, net 9,498.0 (84.2) 2.2 9,416.0 Operating property and equipment, net 843.8 — 18.2 862.1 Sales-type leases and other assets 606.6 156.8 204.3 967.8 Total assets 13,051.1 72.0 224.7 13,347.8 Short-term debt and current portion of long term-debt 930.0 — 7.2 937.1 Accrued expenses and other current liabilities 630.5 145.1 72.2 847.7 Total current liabilities 2,292.3 145.1 79.3 2,516.7 Long-term debt 5,693.6 — 18.5 5,712.1 Other non-current liabilities 849.9 421.2 131.5 1,402.6 Deferred income taxes 1,304.8 (124.6) (0.5) 1,179.7 Total liabilities 10,140.8 441.7 228.8 10,811.2 Retained earnings 2,710.7 (369.6) (3.8) 2,337.3 Accumulated other comprehensive loss (911.3) (0.1) (0.2) (911.6) Total shareholders' equity 2,910.3 (369.7) (4.1) 2,536.6 Total liabilities and shareholders' equity 13,051.1 72.0 224.7 13,347.8 ———————————— (1) We determined that in a prior period certain lessor arrangements of revenue earning equipment historically accounted for as operating leases should have been accounted for as direct financing leases. Additionally, we evaluated our leases for classification and determined that certain lessee arrangements, primarily real estate leases, historically accounted for as operating leases should have been accounted for as capital leases. The prior period error was corrected by increasing "Receivables, net" by approximately $24 million and also increasing sales-type leases and other assets by approximately $65 million and reducing "Revenue earning equipment, net" by approximately $83 million. We concluded these errors were not material to any of our previously issued consolidated financial statements. Note: Amounts may not be additive due to rounding. Adoption of the new lease standard impacted our previously reported Consolidated Condensed Statements of Cash Flows as follows (in millions): Nine months ended September 30, 2018 As Previously Reported New Lease Standard Adjustments As Revised Net earnings $ 164.5 8.1 172.6 Earnings from continuing operations 167.0 8.1 175.1 Depreciation expense 1,028.5 (6.5) 1,022.0 Used vehicle sales, net 16.4 (0.2) 16.2 Amortization expense and other non-cash charges, net 21.2 83.7 104.9 Deferred income tax expense 103.1 2.8 105.9 Collections on sales-type leases and other items — 63.3 63.3 Changes in operating assets and liabilities: Prepaid expenses and other assets (27.2) (77.3) (104.5) Accrued expenses and other non-current liabilities (6.7) (10.7) (17.4) Net cash provided by operating activities from continuing operations 1,212.4 63.2 1,275.6 Debt repaid (466.1) (5.6) (471.7) Net cash provided by financing activities from continuing operations 784.9 (5.6) 779.2 Collections on direct finance leases and other items 57.6 (57.6) — Net cash used in investing activities from continuing operations (2,018.2) (57.6) (2,075.8) Note: Amounts may not be additive due to rounding. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Disaggregation of Revenue The following tables disaggregate our revenue recognized by primary geographical market, major product/service lines, and industry. During 2019, we adopted Topic 842 and have retrospectively adjusted 2018 for the impact of this new standard. Primary Geographical Markets Three months ended September 30, 2019 FMS DTS SCS Eliminations Total (In thousands) United States $ 1,250,147 359,211 508,091 (144,941) 1,972,508 Canada 75,836 — 53,550 (5,284) 124,102 Europe 71,363 — — — 71,363 Mexico — — 55,959 — 55,959 Singapore — — — — — Total revenue $ 1,397,346 359,211 617,600 (150,225) 2,223,932 Three months ended September 30, 2018 FMS DTS SCS Eliminations Total (In thousands) United States (1) 1,185,548 340,604 524,974 (141,874) 1,909,252 Canada 75,859 — 45,587 (5,363) 116,083 Europe 76,364 — — — 76,364 Mexico (1) — — 51,927 — 51,927 Singapore — — 6,056 — 6,056 Total revenue 1,337,771 340,604 628,544 (147,237) 2,159,682 ———————————— (1) 2018 SCS total revenue amounts for the United States and Mexico include reclassifications to conform to the current period presentation. Nine months ended September 30, 2019 FMS DTS SCS Eliminations Total (In thousands) United States $ 3,687,721 1,071,076 1,577,106 (448,114) 5,887,789 Canada 226,240 — 156,803 (16,147) 366,896 Europe 225,894 — — — 225,894 Mexico — — 165,380 — 165,380 Singapore — — 3,293 — 3,293 Total revenue $ 4,139,855 1,071,076 1,902,582 (464,261) 6,649,252 Nine months ended September 30, 2018 FMS DTS SCS Eliminations Total (In thousands) United States (1) 3,410,737 970,196 1,427,196 (405,158) 5,402,971 Canada 226,161 — 136,428 (15,572) 347,017 Europe 239,652 — — — 239,652 Mexico (1) — — 146,029 — 146,029 Singapore — — 18,122 — 18,122 Total revenue 3,876,550 970,196 1,727,775 (420,730) 6,153,791 ———————————— (1) 2018 SCS total revenue amounts for the United States and Mexico include reclassifications to conform to the current period presentation. Major Products/Service Lines Three months ended September 30, 2019 FMS DTS SCS Eliminations Total (In thousands) ChoiceLease $ 779,811 — — (70,563) 709,248 SelectCare 133,434 — — (11,801) 121,633 Commercial rental 262,976 — — (13,035) 249,941 Fuel 198,669 — — (54,826) 143,843 Other 22,456 — — — 22,456 DTS — 359,211 — — 359,211 SCS — — 617,600 — 617,600 Total revenue $ 1,397,346 359,211 617,600 (150,225) 2,223,932 Three months ended September 30, 2018 FMS DTS SCS Eliminations Total (In thousands) ChoiceLease 717,951 — — (63,882) 654,069 SelectCare 125,850 — — (10,418) 115,432 Commercial rental 257,909 — — (15,190) 242,719 Fuel 214,534 — — (57,747) 156,787 Other 21,527 — — — 21,527 DTS — 340,604 — — 340,604 SCS — — 628,544 — 628,544 Total revenue 1,337,771 340,604 628,544 (147,237) 2,159,682 Nine months ended September 30, 2019 FMS DTS SCS Eliminations Total (In thousands) ChoiceLease $ 2,293,701 — — (209,301) 2,084,400 SelectCare 405,572 — — (35,863) 369,709 Commercial rental 752,995 — — (44,814) 708,181 Fuel 618,906 — — (174,283) 444,623 Other 68,681 — — — 68,681 DTS — 1,071,076 — — 1,071,076 SCS — — 1,902,582 — 1,902,582 Total revenue $ 4,139,855 1,071,076 1,902,582 (464,261) 6,649,252 Nine months ended September 30, 2018 FMS DTS SCS Eliminations Total (In thousands) ChoiceLease 2,109,908 — — (186,867) 1,923,041 SelectCare 372,989 — — (29,603) 343,386 Commercial rental 694,864 — — (37,536) 657,328 Fuel 633,571 — — (166,724) 466,847 Other 65,218 — — — 65,218 DTS — 970,196 — — 970,196 SCS — — 1,727,775 — 1,727,775 Total revenue 3,876,550 970,196 1,727,775 (420,730) 6,153,791 Industry Our SCS business segment includes revenue from the below industries: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Automotive $ 246,627 250,461 $ 761,593 690,138 Technology and healthcare 100,286 123,043 324,009 340,528 CPG and retail 217,901 210,966 660,581 544,019 Industrial and other 52,786 44,074 156,399 153,090 Total revenue $ 617,600 628,544 $ 1,902,582 1,727,775 Contract Balances We record a receivable related to revenue recognized when we have an unconditional right to invoice. There were no material contract assets as of September 30, 2019 or December 31, 2018. Trade receivables were $1.09 billion at both September 30, 2019 and December 31, 2018. Contract liabilities primarily relate to payments received in advance of performance under the contract. Changes in contract liabilities are due to our performance under the contract. The amount of deferred revenue as of January 1, 2019 recognized during the three and nine months ended September 30, 2019 was $41 million and $142 million, respectively. In addition, we deferred consideration of $50 million and $152 million received in advance of performance during the three and nine months ended September 30, 2019, respectively, resulting in an increase in deferred revenue. Refer to Note 5, "Accrued Expenses and Other Liabilities," for additional information on deferred revenue. Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized revenue”). Contracted not recognized revenue includes deferred revenue and amounts for full service ChoiceLease maintenance revenue that will be recognized as revenue in future periods as we provide maintenance services to our customers. Contracted not recognized revenue excludes variable consideration as it is not included in the transaction price consideration allocated at contract inception. Contracted not recognized revenue was $2.8 billion as of September 30, 2019. Costs to Obtain and Fulfill a Contract We capitalize incremental sales commissions paid as a result of obtaining ChoiceLease, DTS and SCS service contracts as contract costs. Capitalized sales commissions totaled $106 million and $107 million at September 30, 2019 and December 31, 2018, respectively. Capitalized sales commissions include initial direct costs of our leases of $55 million at September 30, 2019 and $53 million at December 31, 2018. Capitalized sales commissions are presented in “Sales-type leases and other assets” in our Consolidated Condensed Balance Sheets. Capitalized sales commissions related to our ChoiceLease product are amortized based on the same pattern that the revenue is recognized for the underlying lease or non-lease components of the contract; generally on a straight-line basis for the lease component and consistent with the estimated pattern of maintenance costs for the non-lease component. We allocate the ChoiceLease commissions to the lease and non-lease components based on the same allocation of the contract consideration. The amortization period aligns with the term of our contract, which typically ranges from three Capitalized sales commissions related to our DTS and SCS service contracts are amortized based on the same pattern that the revenue is recognized for the underlying contracts. This generally results in a straight-line amortization as the amount of revenue billed to the customer under DTS and SCS contracts corresponds directly with the value to the customer of our performance completed to date. The amortization period aligns with the expected term of the contract, which typically ranges from three |
REVENUE EARNING EQUIPMENT, NET
REVENUE EARNING EQUIPMENT, NET | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Earning Equipment [Abstract] | |
REVENUE EARNING EQUIPMENT, NET | REVENUE EARNING EQUIPMENT, NET September 30, 2019 December 31, 2018 Cost Accumulated Net Book Value (1) Cost Accumulated Net Book Value (1) (In thousands) Held for use: ChoiceLease $ 12,041,619 (4,049,919) 7,991,700 10,824,989 (3,645,655) 7,179,334 Commercial rental 3,403,483 (1,093,663) 2,309,820 3,152,908 (1,047,346) 2,105,562 Held for sale 533,855 (406,924) 126,931 467,093 (336,028) 131,065 Total $ 15,978,957 (5,550,506) 10,428,451 14,444,990 (5,029,029) 9,415,961 ———————————— (1) Revenue earning equipment, net includes vehicles under finance leases of $12 million, less accumulated depreciation of $7 million, at September 30, 2019, and $23 million, less accumulated depreciation of $13 million, at December 31, 2018. We periodically review and adjust, as appropriate, the residual values and useful lives of revenue earning equipment for purposes of recording depreciation expense. Our review of the residual values and useful lives of revenue earning equipment is established with a long-term view based on vehicle class, generally subcategories of trucks, tractors and trailers by weight and usage, as well as other factors, which we refer to as "policy depreciation." These other factors include, but are not limited to, historical market prices, current and expected future market price trends, expected lives of vehicles, and expected sales in the wholesale and retail markets. Factors that could cause actual results to materially differ from estimates include, but are not limited to, unforeseen changes in technology; changes in supply and demand; competitor pricing; regulatory requirements; driver shortages, requirements and preferences; as well as changes in underlying assumption factors. We have disciplines related to the management and maintenance of our vehicles designed to manage the risk associated with the residual values of our revenue earning equipment. In addition, we monitor market trends throughout the year and assess estimates of residual values of vehicles expected to be made available for sale in the near-term (generally 12 to 24 months) and may adjust estimates of residual values for these vehicles to reflect current market rates, which we refer to as "accelerated depreciation." At the end of the second quarter of 2019, we began to experience softening in used vehicle market conditions, which intensified through the third quarter of 2019 and we now expect to continue through 2020. In addition, our inventory of used vehicles that is expected to be made available for sale was higher than expected, which has and will impact the volume of used vehicle sales expected to be transacted through our wholesale channels. Due to these dynamics and our updated outlook, management concluded that our residual value estimates likely exceeded the expected future values that would be realized upon the sale of power vehicles in our fleet. As a result, we changed the estimates of residual values for our revenue earning equipment in the third quarter of 2019 to reflect more recent multi-year trends and our outlook for the expected used vehicle market. The increase in depreciation expense resulting from the change in estimate reduced income from continuing operations before income taxes and net income by approximately $177 million and $158 million, respectively, for both the three and nine months ended September 30, 2019. This amount included accelerated depreciation of approximately $117 million related to lower residual value estimates of vehicles expected to be sold in the near-term and additional policy depreciation of $52 million, as well as valuation adjustments of $8 million related to assets currently held for sale. The effect of the change in estimate decreased our diluted earnings per share by $3.01 for both the three and nine months ended September 30, 2019. Revenue earning equipment held for sale is stated at the lower of carrying amount or fair value less costs to sell. Losses on vehicles held for sale for which carrying values exceeded fair value are recognized at the time they arrive at our used truck sales centers and are presented within “Used vehicle sales, net” 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. For a certain population of our revenue earning equipment held for sale, 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. Expected declines in market prices were also considered when valuing the vehicles held for sale. These vehicles held for sale were classified within Level 3 of the fair value hierarchy. The following table presents our assets held for sale that are measured at fair value on a nonrecurring basis and considered a Level 3 fair value measurement: Total Losses (2) Three months ended September 30, Nine months ended September 30, September 30, 2019 December 31, 2018 2019 2018 2019 2018 (In thousands) Assets held for sale: Revenue earning equipment (1) : Trucks $ 39,183 44,325 $ 10,269 9,713 $ 30,556 28,609 Tractors 44,285 35,397 14,430 1,317 34,451 6,795 Trailers 1,186 1,507 1,195 502 2,859 3,700 Total assets at fair value $ 84,654 81,229 $ 25,894 11,532 $ 67,866 39,104 ———————————— (1) Assets held for sale in the table above only include the portion of revenue earning equipment held for sale where net book values exceeded fair values and fair value adjustments were recorded. The net book value of assets held for sale that were less than fair value was $42 million and $50 million as of September 30, 2019 and December 31, 2018, respectively. (2) Total losses represent fair value adjustments for all vehicles reclassified to held for sale throughout the period for which fair value was less than net book value. The components of used vehicle sales, net were as follows: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Gains on vehicle sales, net $ (3,160) (8,329) $ (18,775) (22,911) Losses from fair value adjustments 25,894 11,532 67,866 39,104 Used vehicle sales, net $ 22,734 3,203 $ 49,091 16,193 We own the majority of our revenue earning equipment. Revenue earning equipment that we lease as a lessee are immaterial and are therefore not separately disclosed from owned revenue earning equipment. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 9 Months Ended |
Sep. 30, 2019 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ACCRUED EXPENSES AND OTHER LIABILITIES September 30, 2019 December 31, 2018 Accrued Non-Current Total Accrued Non-Current Total (In thousands) Salaries and wages $ 124,163 — 124,163 149,629 — 149,629 Deferred compensation 5,988 60,479 66,467 4,524 55,279 59,803 Pension benefits 3,767 457,697 461,464 3,754 456,979 460,733 Other postretirement benefits 1,393 18,565 19,958 1,387 18,097 19,484 Other employee benefits 17,220 — 17,220 28,370 — 28,370 Insurance obligations (1) 161,004 275,841 436,845 139,314 247,552 386,866 Operating taxes 110,044 — 110,044 100,399 — 100,399 Income taxes 7,290 18,368 25,658 3,491 18,477 21,968 Interest 43,304 — 43,304 39,522 — 39,522 Deposits, mainly from customers 80,722 3,116 83,838 80,401 3,390 83,791 Operating lease liabilities 72,888 144,834 217,722 73,422 137,384 210,806 Deferred revenue (2) 164,963 425,270 590,233 160,902 421,176 582,078 Restructuring liabilities (3) 2,157 — 2,157 7,595 — 7,595 Other 54,390 47,245 101,635 55,029 44,291 99,320 Total $ 849,293 1,451,415 2,300,708 847,739 1,402,625 2,250,364 ———————————— (1) Insurance obligations are primarily comprised of self-insured claim liabilities. (2) Deferred revenue is primarily related to the non-lease maintenance services component of our ChoiceLease product line. (3) The reduction in restructuring liabilities from December 31, 2018 principally represents cash payments for employee termination costs. The majority of the balance remaining in restructuring liabilities is expected to be paid by the end of 2019. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | LEASES Leases as Lessor The components of lease income were as follows: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Operating leases Lease income related to lease payments $ 381,170 344,031 $ 1,116,029 1,013,728 Lease income related to commercial rental (1) 249,941 242,719 708,181 657,328 Sales type leases Interest income related to net investment in leases 11,169 9,555 33,057 29,075 Variable lease income excluding commercial rental (1) 69,641 60,845 183,489 169,478 ———————————— (1) Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% to 25% of total commercial rental income based on management's internal estimates. The components of net investment in sales-type leases were as follows: September 30, 2019 December 31, 2018 (In thousands) Net investment in the lease — lease payment receivable $ 580,047 505,057 Net investment in the lease — unguaranteed residual value in assets 55,528 46,209 $ 635,575 551,266 ———————————— Note: The net investment in the sales-type lease shown above are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Condensed Balance Sheets. Maturities of sales-type lease receivables were as follows: September 30, 2019 December 31, 2018 (In thousands) 2019 (remaining three months ending December 31, 2019) $ 39,210 133,557 2020 168,652 136,924 2021 145,008 114,983 2022 115,490 85,146 2023 82,193 52,161 Thereafter 139,651 78,935 Total undiscounted cash flows 690,204 601,706 Present value of lease payments (recognized as lease receivables) (580,047) (505,057) Difference between undiscounted cash flows and discounted cash flows $ 110,157 96,649 Maturities of operating lease payments were as follows: September 30, 2019 December 31, 2018 (In thousands) 2019 (remaining three months ending December 31, 2019) $ 347,696 1,159,851 2020 1,211,789 892,721 2021 952,610 646,008 2022 673,422 421,050 2023 447,920 249,255 Thereafter 491,477 203,632 Total undiscounted cash flows $ 4,124,914 3,572,517 Leases as Lessee The components of lease expense were as follows: Three months ended September 30, Nine months ended September 30, Classification 2019 2018 2019 2018 (In thousands) Finance lease cost Amortization of right-of-use assets Other operating expenses, SG&A $ 3,735 3,805 $ 10,257 10,787 Interest on lease liabilities Interest expense 638 689 1,916 1,886 Operating lease cost Other operating expenses, SG&A 23,722 23,063 70,578 64,506 Short-term lease and other Other operating expenses, SG&A 2,480 835 6,569 2,648 Variable lease cost Other operating expenses, SG&A 4,320 3,647 9,920 8,092 Sublease income Cost of lease & related maintenance and rental, cost of services (5,691) (6,490) (17,201) (19,050) Total lease cost $ 29,204 25,549 $ 82,039 68,869 Supplemental cash flow information related to leases was as follows: Nine months ended September 30, 2019 2018 (In thousands) Cash paid for amounts included in measurement of liabilities Operating cash flows from finance leases $ 1,916 1,886 Operating cash flows from operating leases 69,848 63,286 Financing cash flows from finance leases 14,650 13,420 Right-of-use assets obtained in exchange for lease obligations: Finance leases 15,336 12,889 Operating leases 70,365 96,295 Supplemental balance sheet information relates to leases was as follows: Classification September 30, 2019 December 31, 2018 (In thousands) Assets Operating lease right-of-use assets Sales-type leases and other assets $ 209,556 203,834 Finance lease assets Operating property and equipment, net and revenue earning equipment, net 41,346 41,647 Total leased assets $ 250,902 245,481 Liabilities Current Operating Accrued expenses and other current liabilities $ 72,888 73,422 Finance Short-term debt and current portion of long-term debt 12,209 14,543 Noncurrent Operating Other non-current liabilities 144,834 137,384 Finance Long-term debt 36,351 32,909 Total lease liabilities $ 266,282 258,258 September 30, 2019 December 31, 2018 (In thousands) Weighted-average remaining lease term Operating 4 years 4 years Finance 6 years 7 years Weighted-average discount rate Operating 3.9 % 3.7 % Finance 7.2 % 8.0 % Maturities of operating and finance lease liabilities were as follows: Operating Finance Leases Total (In thousands) 2019 (remaining three months ending December 31, 2019) $ 22,200 3,962 26,162 2020 72,840 13,709 86,549 2021 51,964 12,048 64,012 2022 37,869 8,130 45,999 2023 26,558 5,532 32,090 Thereafter 23,570 14,178 37,748 Total lease payments 235,001 57,559 292,560 Less: Imputed Interest (17,279) (8,999) (26,278) Present value of lease liabilities $ 217,722 48,560 266,282 |
LEASES | LEASES Leases as Lessor The components of lease income were as follows: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Operating leases Lease income related to lease payments $ 381,170 344,031 $ 1,116,029 1,013,728 Lease income related to commercial rental (1) 249,941 242,719 708,181 657,328 Sales type leases Interest income related to net investment in leases 11,169 9,555 33,057 29,075 Variable lease income excluding commercial rental (1) 69,641 60,845 183,489 169,478 ———————————— (1) Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% to 25% of total commercial rental income based on management's internal estimates. The components of net investment in sales-type leases were as follows: September 30, 2019 December 31, 2018 (In thousands) Net investment in the lease — lease payment receivable $ 580,047 505,057 Net investment in the lease — unguaranteed residual value in assets 55,528 46,209 $ 635,575 551,266 ———————————— Note: The net investment in the sales-type lease shown above are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Condensed Balance Sheets. Maturities of sales-type lease receivables were as follows: September 30, 2019 December 31, 2018 (In thousands) 2019 (remaining three months ending December 31, 2019) $ 39,210 133,557 2020 168,652 136,924 2021 145,008 114,983 2022 115,490 85,146 2023 82,193 52,161 Thereafter 139,651 78,935 Total undiscounted cash flows 690,204 601,706 Present value of lease payments (recognized as lease receivables) (580,047) (505,057) Difference between undiscounted cash flows and discounted cash flows $ 110,157 96,649 Maturities of operating lease payments were as follows: September 30, 2019 December 31, 2018 (In thousands) 2019 (remaining three months ending December 31, 2019) $ 347,696 1,159,851 2020 1,211,789 892,721 2021 952,610 646,008 2022 673,422 421,050 2023 447,920 249,255 Thereafter 491,477 203,632 Total undiscounted cash flows $ 4,124,914 3,572,517 Leases as Lessee The components of lease expense were as follows: Three months ended September 30, Nine months ended September 30, Classification 2019 2018 2019 2018 (In thousands) Finance lease cost Amortization of right-of-use assets Other operating expenses, SG&A $ 3,735 3,805 $ 10,257 10,787 Interest on lease liabilities Interest expense 638 689 1,916 1,886 Operating lease cost Other operating expenses, SG&A 23,722 23,063 70,578 64,506 Short-term lease and other Other operating expenses, SG&A 2,480 835 6,569 2,648 Variable lease cost Other operating expenses, SG&A 4,320 3,647 9,920 8,092 Sublease income Cost of lease & related maintenance and rental, cost of services (5,691) (6,490) (17,201) (19,050) Total lease cost $ 29,204 25,549 $ 82,039 68,869 Supplemental cash flow information related to leases was as follows: Nine months ended September 30, 2019 2018 (In thousands) Cash paid for amounts included in measurement of liabilities Operating cash flows from finance leases $ 1,916 1,886 Operating cash flows from operating leases 69,848 63,286 Financing cash flows from finance leases 14,650 13,420 Right-of-use assets obtained in exchange for lease obligations: Finance leases 15,336 12,889 Operating leases 70,365 96,295 Supplemental balance sheet information relates to leases was as follows: Classification September 30, 2019 December 31, 2018 (In thousands) Assets Operating lease right-of-use assets Sales-type leases and other assets $ 209,556 203,834 Finance lease assets Operating property and equipment, net and revenue earning equipment, net 41,346 41,647 Total leased assets $ 250,902 245,481 Liabilities Current Operating Accrued expenses and other current liabilities $ 72,888 73,422 Finance Short-term debt and current portion of long-term debt 12,209 14,543 Noncurrent Operating Other non-current liabilities 144,834 137,384 Finance Long-term debt 36,351 32,909 Total lease liabilities $ 266,282 258,258 September 30, 2019 December 31, 2018 (In thousands) Weighted-average remaining lease term Operating 4 years 4 years Finance 6 years 7 years Weighted-average discount rate Operating 3.9 % 3.7 % Finance 7.2 % 8.0 % Maturities of operating and finance lease liabilities were as follows: Operating Finance Leases Total (In thousands) 2019 (remaining three months ending December 31, 2019) $ 22,200 3,962 26,162 2020 72,840 13,709 86,549 2021 51,964 12,048 64,012 2022 37,869 8,130 45,999 2023 26,558 5,532 32,090 Thereafter 23,570 14,178 37,748 Total lease payments 235,001 57,559 292,560 Less: Imputed Interest (17,279) (8,999) (26,278) Present value of lease liabilities $ 217,722 48,560 266,282 |
LEASES | LEASES Leases as Lessor The components of lease income were as follows: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Operating leases Lease income related to lease payments $ 381,170 344,031 $ 1,116,029 1,013,728 Lease income related to commercial rental (1) 249,941 242,719 708,181 657,328 Sales type leases Interest income related to net investment in leases 11,169 9,555 33,057 29,075 Variable lease income excluding commercial rental (1) 69,641 60,845 183,489 169,478 ———————————— (1) Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% to 25% of total commercial rental income based on management's internal estimates. The components of net investment in sales-type leases were as follows: September 30, 2019 December 31, 2018 (In thousands) Net investment in the lease — lease payment receivable $ 580,047 505,057 Net investment in the lease — unguaranteed residual value in assets 55,528 46,209 $ 635,575 551,266 ———————————— Note: The net investment in the sales-type lease shown above are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Condensed Balance Sheets. Maturities of sales-type lease receivables were as follows: September 30, 2019 December 31, 2018 (In thousands) 2019 (remaining three months ending December 31, 2019) $ 39,210 133,557 2020 168,652 136,924 2021 145,008 114,983 2022 115,490 85,146 2023 82,193 52,161 Thereafter 139,651 78,935 Total undiscounted cash flows 690,204 601,706 Present value of lease payments (recognized as lease receivables) (580,047) (505,057) Difference between undiscounted cash flows and discounted cash flows $ 110,157 96,649 Maturities of operating lease payments were as follows: September 30, 2019 December 31, 2018 (In thousands) 2019 (remaining three months ending December 31, 2019) $ 347,696 1,159,851 2020 1,211,789 892,721 2021 952,610 646,008 2022 673,422 421,050 2023 447,920 249,255 Thereafter 491,477 203,632 Total undiscounted cash flows $ 4,124,914 3,572,517 Leases as Lessee The components of lease expense were as follows: Three months ended September 30, Nine months ended September 30, Classification 2019 2018 2019 2018 (In thousands) Finance lease cost Amortization of right-of-use assets Other operating expenses, SG&A $ 3,735 3,805 $ 10,257 10,787 Interest on lease liabilities Interest expense 638 689 1,916 1,886 Operating lease cost Other operating expenses, SG&A 23,722 23,063 70,578 64,506 Short-term lease and other Other operating expenses, SG&A 2,480 835 6,569 2,648 Variable lease cost Other operating expenses, SG&A 4,320 3,647 9,920 8,092 Sublease income Cost of lease & related maintenance and rental, cost of services (5,691) (6,490) (17,201) (19,050) Total lease cost $ 29,204 25,549 $ 82,039 68,869 Supplemental cash flow information related to leases was as follows: Nine months ended September 30, 2019 2018 (In thousands) Cash paid for amounts included in measurement of liabilities Operating cash flows from finance leases $ 1,916 1,886 Operating cash flows from operating leases 69,848 63,286 Financing cash flows from finance leases 14,650 13,420 Right-of-use assets obtained in exchange for lease obligations: Finance leases 15,336 12,889 Operating leases 70,365 96,295 Supplemental balance sheet information relates to leases was as follows: Classification September 30, 2019 December 31, 2018 (In thousands) Assets Operating lease right-of-use assets Sales-type leases and other assets $ 209,556 203,834 Finance lease assets Operating property and equipment, net and revenue earning equipment, net 41,346 41,647 Total leased assets $ 250,902 245,481 Liabilities Current Operating Accrued expenses and other current liabilities $ 72,888 73,422 Finance Short-term debt and current portion of long-term debt 12,209 14,543 Noncurrent Operating Other non-current liabilities 144,834 137,384 Finance Long-term debt 36,351 32,909 Total lease liabilities $ 266,282 258,258 September 30, 2019 December 31, 2018 (In thousands) Weighted-average remaining lease term Operating 4 years 4 years Finance 6 years 7 years Weighted-average discount rate Operating 3.9 % 3.7 % Finance 7.2 % 8.0 % Maturities of operating and finance lease liabilities were as follows: Operating Finance Leases Total (In thousands) 2019 (remaining three months ending December 31, 2019) $ 22,200 3,962 26,162 2020 72,840 13,709 86,549 2021 51,964 12,048 64,012 2022 37,869 8,130 45,999 2023 26,558 5,532 32,090 Thereafter 23,570 14,178 37,748 Total lease payments 235,001 57,559 292,560 Less: Imputed Interest (17,279) (8,999) (26,278) Present value of lease liabilities $ 217,722 48,560 266,282 |
LEASES | LEASES Leases as Lessor The components of lease income were as follows: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Operating leases Lease income related to lease payments $ 381,170 344,031 $ 1,116,029 1,013,728 Lease income related to commercial rental (1) 249,941 242,719 708,181 657,328 Sales type leases Interest income related to net investment in leases 11,169 9,555 33,057 29,075 Variable lease income excluding commercial rental (1) 69,641 60,845 183,489 169,478 ———————————— (1) Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% to 25% of total commercial rental income based on management's internal estimates. The components of net investment in sales-type leases were as follows: September 30, 2019 December 31, 2018 (In thousands) Net investment in the lease — lease payment receivable $ 580,047 505,057 Net investment in the lease — unguaranteed residual value in assets 55,528 46,209 $ 635,575 551,266 ———————————— Note: The net investment in the sales-type lease shown above are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Condensed Balance Sheets. Maturities of sales-type lease receivables were as follows: September 30, 2019 December 31, 2018 (In thousands) 2019 (remaining three months ending December 31, 2019) $ 39,210 133,557 2020 168,652 136,924 2021 145,008 114,983 2022 115,490 85,146 2023 82,193 52,161 Thereafter 139,651 78,935 Total undiscounted cash flows 690,204 601,706 Present value of lease payments (recognized as lease receivables) (580,047) (505,057) Difference between undiscounted cash flows and discounted cash flows $ 110,157 96,649 Maturities of operating lease payments were as follows: September 30, 2019 December 31, 2018 (In thousands) 2019 (remaining three months ending December 31, 2019) $ 347,696 1,159,851 2020 1,211,789 892,721 2021 952,610 646,008 2022 673,422 421,050 2023 447,920 249,255 Thereafter 491,477 203,632 Total undiscounted cash flows $ 4,124,914 3,572,517 Leases as Lessee The components of lease expense were as follows: Three months ended September 30, Nine months ended September 30, Classification 2019 2018 2019 2018 (In thousands) Finance lease cost Amortization of right-of-use assets Other operating expenses, SG&A $ 3,735 3,805 $ 10,257 10,787 Interest on lease liabilities Interest expense 638 689 1,916 1,886 Operating lease cost Other operating expenses, SG&A 23,722 23,063 70,578 64,506 Short-term lease and other Other operating expenses, SG&A 2,480 835 6,569 2,648 Variable lease cost Other operating expenses, SG&A 4,320 3,647 9,920 8,092 Sublease income Cost of lease & related maintenance and rental, cost of services (5,691) (6,490) (17,201) (19,050) Total lease cost $ 29,204 25,549 $ 82,039 68,869 Supplemental cash flow information related to leases was as follows: Nine months ended September 30, 2019 2018 (In thousands) Cash paid for amounts included in measurement of liabilities Operating cash flows from finance leases $ 1,916 1,886 Operating cash flows from operating leases 69,848 63,286 Financing cash flows from finance leases 14,650 13,420 Right-of-use assets obtained in exchange for lease obligations: Finance leases 15,336 12,889 Operating leases 70,365 96,295 Supplemental balance sheet information relates to leases was as follows: Classification September 30, 2019 December 31, 2018 (In thousands) Assets Operating lease right-of-use assets Sales-type leases and other assets $ 209,556 203,834 Finance lease assets Operating property and equipment, net and revenue earning equipment, net 41,346 41,647 Total leased assets $ 250,902 245,481 Liabilities Current Operating Accrued expenses and other current liabilities $ 72,888 73,422 Finance Short-term debt and current portion of long-term debt 12,209 14,543 Noncurrent Operating Other non-current liabilities 144,834 137,384 Finance Long-term debt 36,351 32,909 Total lease liabilities $ 266,282 258,258 September 30, 2019 December 31, 2018 (In thousands) Weighted-average remaining lease term Operating 4 years 4 years Finance 6 years 7 years Weighted-average discount rate Operating 3.9 % 3.7 % Finance 7.2 % 8.0 % Maturities of operating and finance lease liabilities were as follows: Operating Finance Leases Total (In thousands) 2019 (remaining three months ending December 31, 2019) $ 22,200 3,962 26,162 2020 72,840 13,709 86,549 2021 51,964 12,048 64,012 2022 37,869 8,130 45,999 2023 26,558 5,532 32,090 Thereafter 23,570 14,178 37,748 Total lease payments 235,001 57,559 292,560 Less: Imputed Interest (17,279) (8,999) (26,278) Present value of lease liabilities $ 217,722 48,560 266,282 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Weighted-Average September 30, December 31, Maturities September 30, December 31, (In thousands) Short-term debt and current portion of long-term debt: Short-term debt 1.57% 2.69% $ 217,738 81,522 Current portion of long-term debt, including finance leases 722,953 855,609 Total short-term debt and current portion of long-term debt 940,691 937,131 Long-term debt: U.S. commercial paper (1) 2.30% 2.78% 2023 698,594 454,397 Canadian commercial paper (1) 2.00% 2.28% 2023 111,420 123,491 Trade receivables program —% 3.15% 2020 — 200,000 Global revolving credit facility 3.07% 2.25% 2023 3,000 12,581 Unsecured U.S. notes — Medium-term notes (1)(2) 3.21% 3.22% 2020-2025 5,564,895 4,853,496 Unsecured U.S. obligations 3.05% 3.50% 2024 200,000 50,000 Unsecured foreign obligations 2.80% 1.61% 2020-2024 83,984 216,719 Asset-backed U.S. obligations (3) 2.49% 2.37% 2019-2026 842,899 627,707 Finance lease obligations 7.19% 7.97% 2019-2073 48,560 47,452 Total long-term debt 7,553,352 6,585,843 Debt issuance costs (24,513) (18,088) 7,528,839 6,567,755 Current portion of long-term debt, including finance leases (722,953) (855,609) Long-term debt 6,805,886 5,712,146 Total debt $ 7,746,577 6,649,277 ———————————— (1) Amounts are net of unamortized original issue discounts of $7 million at September 30, 2019 and December 31, 2018, respectively. (2) Amounts are inclusive of fair market value adjustments on notes subject to hedging of $1 million and $10 million at September 30, 2019 and December 31, 2018, respectively. The notional amount of the executed interest rate swaps designated as fair value hedges was $525 million and $725 million at September 30, 2019 and December 31, 2018, respectively. Refer to Note 8, "Derivatives," for additional information. (3) Asset-backed U.S. obligations are related to financing transactions backed by a portion of our revenue earning equipment. We maintain a $1.4 billion global revolving credit facility with a syndicate of twelve lending institutions, which matures in September 2023. The agreement provides for annual facility fees that range from 7.5 basis points to 20 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 $1.4 billion. The credit facility is primarily used 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 September 30, 2019). At September 30, 2019, $546 million was available under the credit facility. 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 September 30, 2019 was 219%. Our global revolving credit facility enables us to refinance short-term obligations on a long-term basis. Short-term commercial paper obligations not required for working capital needs 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 certain long-term debt on a long-term basis. At September 30, 2019, we classified $810 million of short-term commercial paper, $400 million of the current portion of long-term debt and $19 million of short-term debt as long-term debt. At December 31, 2018, we classified $578 million of short-term commercial paper, $200 million of trade receivables borrowings, $250 million of the current portion of long-term debt and $50 million of short-term debt as long-term debt. In August 2019, we issued $550 million of unsecured medium-term notes maturing in September 2024. In May 2019, we issued $550 million of unsecured medium-term notes maturing in June 2022. In February 2019, we issued $600 million of unsecured medium-term notes maturing in March 2024. The proceeds from these notes were used to pay off maturing debt and for general corporate purposes. If these notes are downgraded below investment grade following, and as a result of, a change in control, the note holders can require us to repurchase all or a portion of the notes at a purchase price equal to 101% of principal value plus accrued and unpaid interest. In the second quarter of 2019, we executed a $50 million bank term loan maturing in April 2024 in one of our Canadian subsidiaries. In the first quarter of 2019, we executed two $100 million bank term loans maturing in February and March of 2024. The proceeds from these loans were used to pay off maturing debt and for general corporate purposes. In May 2019, we received $298 million from financing transactions backed by a portion of our revenue earning equipment. The proceeds from these transactions were used for general corporate purposes. We have provided end of term guarantees for the residual value of the revenue earning equipment in these transactions. The transaction proceeds, along with the end of term residual value guarantees, have been included within "asset-backed U.S. obligations" in 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 committed purchaser. The available proceeds that may be received under the program are limited to $225 million. No amounts were outstanding under the program at September 30, 2019. At December 31, 2018, $200 million was outstanding under the program. At September 30, 2019 and December 31, 2018, we had letters of credit and surety bonds outstanding totaling $461 million and $375 million, respectively, which primarily guarantee the payment of insurance claims. The fair value of total debt (excluding capital lease and asset-backed U.S. obligations) at September 30, 2019 and December 31, 2018, was approximately $7.0 billion and $6.0 billion, respectively. For publicly-traded debt, estimates of fair value were based on market prices. 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. The fair value measurements of our publicly-traded debt and other debt were 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 | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES From time to time, we enter into interest rate derivative contracts to manage our fixed and variable interest rate exposure and to better match the repricing of debt instruments to that of our portfolio of assets. We assess the risk that changes in interest rates will have either on the fair value of debt obligations or on the amount of future interest payments by monitoring changes in interest rate exposures and by evaluating hedging opportunities. We regularly monitor interest rate risk attributable to both our outstanding or forecasted debt obligations as well as any offsetting hedge positions. This risk management process involves the use of analytical techniques, including cash flow sensitivity analysis, to estimate the expected impact of changes in interest rates on our future cash flows. Our derivative instruments are measured at fair value on a recurring basis using Level 2 inputs. As of September 30, 2019, we had interest rate swaps outstanding that are designated as fair value hedges for certain debt obligations, with a total notional value of $525 million and maturities throu gh 2022. The fair value of these interest rate swaps was not material as of September 30, 2019. The fair value of these interest rate swaps was a liability of $10 million as of December 31, 2018 (presented in "Other non-current liabilities" in our Consolidated Condensed Balance Sheets). Changes in the fair value of our interest rate swaps were offset by changes in the fair value of the hedged debt instruments. Accordingly, there was no ineffectiveness related to the interest rate swaps. As of September 30, 2019, we had interest rate swaps outstanding that are designated as cash flow hedges for certain debt obligations, with a total notional value of $215 million and maturities through 2024. The fair value of these interest rate swaps was a liability of $9 million as of September 30, 2019 (presented in "Other non-current liabilities" in our Consolidated Condensed Balance Sheets). The fair value of these interest rate swaps was not material as of December 31, 2018. There was no ineffectiveness related to the interest rate swaps. |
SHARE REPURCHASE PROGRAMS
SHARE REPURCHASE PROGRAMS | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
SHARE REPURCHASE PROGRAMS | SHARE REPURCHASE PROGRAMS In December 2017, our Board of Directors authorized a share repurchase program intended to mitigate the dilutive impact of shares issued under our employee stock plans (the program). Under the program, management is authorized to repurchase up to 1.5 million shares of common stock, the sum of which will not exceed the number of shares issued to employees under the Company’s employee stock plans from December 31, 2017 to December 13, 2019. Share repurchases of common stock are made periodically in open-market transactions and are subject to market conditions, legal requirements and other factors. Management may establish prearranged written plans for the Company under Rule 10b5-1 of the Securities Exchange Act of 1934 as part of the program, which allow for share repurchases during Ryder’s quarterly blackout periods as set forth in the trading plan. During the nine months ended September 30, 2019 and 2018, we repurchased approximately 408,000 shares for $24 million and 369,000 shares for $28 million, respectively. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Sep. 30, 2019 | |
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 Net Actuarial Loss (1) Prior Service Cost (1) Accumulated (In thousands) December 31, 2018 $ (199,713) (700,384) (11,537) (911,634) Amortization — 17,081 415 17,496 Other current period change (13,813) (7,203) — (21,016) September 30, 2019 $ (213,526) (690,506) (11,122) (915,154) Currency Net Actuarial Loss (1) Prior Service Cost (1) Accumulated (In thousands) December 31, 2017 (143,773) (560,153) (6,910) (710,836) Amortization — 15,784 238 16,022 Other current period change (21,866) (903) — (22,769) Adoption of new accounting standard (2) — (98,987) (1,580) (100,567) September 30, 2018 (165,639) (644,259) (8,252) (818,150) _______________________ (1) These amounts are included in the computation of net pension expense. See Note 13, "Employee Benefit Plans," for additional information. (2) Reflects the impact of adopting ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in 2018, which resulted in a reclassification of stranded tax effects caused by the 2017 Tax Cuts and Jobs Act from accumulated other comprehensive loss to retained earnings in the Consolidated Condensed Balance Sheet. The loss from currency translation adjustments in the nine months ended September 30, 2019 of approximately $14 million was primarily due to the weakening of the British Pound against the U.S. Dollar offset by the strengthening Canadian Dollar against the U.S. Dollar. The loss from currency translation adjustments in the nine months ended September 30, 2018 of $22 million was primarily due to the weakening of the British Pound and Canadian Dollar against the U.S. Dollar. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table presents the calculation of basic and diluted earnings (loss) per common share from continuing operations: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands, except per share amounts) Earnings (loss) per share — Basic: Earnings (loss) from continuing operations $ (91,538) 91,602 $ 29,804 175,084 Less: Distributed and undistributed earnings allocated (114) (333) (336) (630) Earnings (loss) from continuing operations available to common shareholders — Basic $ (91,652) 91,269 $ 29,468 174,454 Weighted average common shares outstanding — Basic 52,319 52,397 52,358 52,391 Earnings (loss) from continuing operations per common share — Basic $ (1.75) 1.74 $ 0.56 3.33 Earnings (loss) per share — Diluted: Earnings (loss) from continuing operations $ (91,538) 91,602 $ 29,804 175,084 Less: Distributed and undistributed earnings allocated (114) (333) (336) (630) Earnings (loss) from continuing operations available to common shareholders — Diluted $ (91,652) 91,269 $ 29,468 174,454 Weighted average common shares outstanding — Basic 52,319 52,397 52,358 52,391 Effect of dilutive equity awards — 373 199 349 Weighted average common shares outstanding — Diluted 52,319 52,770 52,557 52,740 Earnings (loss) from continuing operations per common share — Diluted $ (1.75) 1.73 $ 0.56 3.31 Anti-dilutive equity awards not included above 3,170 1,197 1,945 1,230 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2019 | |
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 and unvested stock. Unvested stock awards include grants of market-based, performance-based and time-vested restricted stock rights. Under the terms of our Plans, dividends on unvested stock are not paid unless the stock 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Stock option and stock purchase plans $ 1,511 1,917 $ 4,986 5,688 Unvested stock 5,244 5,262 16,691 13,143 Share-based compensation expense 6,755 7,179 21,677 18,831 Income tax benefit (1,327) (1,388) (3,861) (3,617) Share-based compensation expense, net of tax $ 5,428 5,791 $ 17,816 15,214 Total unrecognized pre-tax compensation expense related to all share-based compensation arrangements at September 30, 2019 was $44 million and is expected to be recognized over a weighted-average period of 1.9 years. The following table is a summary of the awards granted under the Plans during the periods presented: Nine months ended September 30, 2019 2018 (Shares in thousands) Stock options 220 347 Performance-based restricted stock rights 228 200 Time-vested restricted stock rights 408 167 Total 856 714 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Components of net pension expense were as follows: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Pension Benefits Company-administered plans: Service cost $ 2,449 3,074 $ 8,264 9,370 Interest cost 21,301 19,425 64,165 58,275 Expected return on plan assets (22,350) (25,187) (67,615) (76,086) Amortization of: Net actuarial loss 8,170 7,130 23,212 21,416 Prior service cost 167 145 533 434 9,737 4,587 28,559 13,409 Union-administered plans 2,718 2,469 7,876 7,339 Net pension expense $ 12,455 7,056 $ 36,435 20,748 Company-administered plans: U.S. $ 11,067 7,011 $ 33,199 21,033 Non-U.S. (1,330) (2,424) (4,640) (7,624) 9,737 4,587 28,559 13,409 Union-administered plans 2,718 2,469 7,876 7,339 Net pension expense $ 12,455 7,056 $ 36,435 20,748 During the nine months ended September 30, 2019, we contributed $26 million to our pension plans. In 2019, the expected total contributions to our pension plans are approximately $34 million. We also maintain other postretirement benefit plans that are not reflected in the above table. The amount of postretirement benefit expense was not material for the three and nine months ended September 30, 2019 and 2018. |
OTHER ITEMS IMPACTING COMPARABI
OTHER ITEMS IMPACTING COMPARABILITY | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER ITEMS IMPACTING COMPARABILITY | OTHER ITEMS IMPACTING COMPARABILITY Our primary measure of segment performance as shown in Note 17, "Segment Reporting," excludes certain items we do not believe are representative of the ongoing operations of the segment. Excluding these items from our segment measure of performance allows for better year over year comparison: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Restructuring and other, net $ 5,234 (546) $ 13,757 1,836 ERP implementation costs 6,126 — 13,617 — Goodwill impairment — — — 15,513 Restructuring and other items, net 11,360 (546) 27,374 17,349 Gain on sale of property — — (18,614) — Total $ 11,360 (546) $ 8,760 17,349 During the three and nine months ended September 30, 2019 and 2018, the below items were recorded in "Restructuring and other, net" in our Consolidated Condensed Statements of Earnings: • Restructuring and other, net — For the three months ended September 30, 2019, this primarily included charges related to cost savings initiatives and the pursuit of a commercial claim. For the nine months ended September 30, 2019, this also included income from our Singapore operations that were shut down during the second quarter of 2019. For the three months ended September 30, 2018, this primarily related to cost savings initiatives, transaction costs related to the acquisitions of MXD and Metro and restructuring charges offset by restructuring credits related to gains on the sale of certain U.K. facilities that were closed as part of our December 2017 restructuring activities and income from our Singapore operations that were shut down during the second quarter of 2019. For the nine months ended September 30, 2018, this also included a net benefit for an adjustment to the one-time 2017 Tax Cuts and Jobs Act-related employee bonus accrued as of December 31, 2017. • ERP implementation costs — Related to charges with the implementation of an Enterprise Resource Planning (ERP) system. • Goodwill impairment — Related to an impairment charge of goodwill associated with our FMS Europe reporting unit. In addition, we recorded a gain on the sale of certain SCS properties during the nine months ended September 30, 2019. The gain is reflected within "Miscellaneous (income) loss, net" in our Consolidated Condensed Statements of Earnings. Income Taxes We recorded an expense of $0.3 million for income taxes in the third quarter as compared to $27 million in the prior year. For the nine months ended September 30, 2019, we recorded an expense of $50 million as compared to $98 million in the prior year. Tax rates in the third quarter and the nine months ended September 30, 2019 were impacted by the residual value estimate changes. The nine months ended September 30, 2018 included a one-time unfavorable adjustment associated with the 2017 Tax Cuts and Jobs Act ("Tax Reform") recorded in the second quarter of 2018. |
OTHER MATTERS
OTHER MATTERS | 9 Months Ended |
Sep. 30, 2019 | |
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. We believe that the resolution of these claims, complaints and legal proceedings will not have a material effect on our consolidated condensed 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. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information was as follows: Nine months ended September 30, 2019 2018 (In thousands) Interest paid $ 166,720 116,506 Income taxes paid 15,528 20,181 Changes in accounts payable related to purchases of revenue earning equipment 41,772 96,161 |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Ryder is a global leader in transportation and supply chain management solutions. Our operating segments are aggregated into reportable business segments based upon similar economic characteristics, products, services, customers and delivery methods. We report our financial performance based on three business segments: (1) FMS, which provides full service leasing and leasing with flexible maintenance options, commercial rental, and contract or transactional maintenance services of trucks, tractors and trailers to customers principally in the U.S., Canada and the U.K.; (2) DTS, which provides turnkey transportation solutions in the U.S. that includes dedicated vehicles, drivers and engineering and administrative support; and (3) SCS, which provides integrated logistics solutions, including distribution, management, dedicated transportation and professional services primarily in North America. Dedicated transportation services provided as part of an integrated, multi-service, supply chain solution to SCS customers are reported in the SCS business segment. Our primary measurement of segment financial performance, defined as segment “Earnings Before Tax” (EBT) from continuing operations, includes an allocation of Central Support Services (CSS) and excludes certain other items as discussed in Note 14, "Other Items Impacting Comparability." CSS represents those costs incurred to support all business segments, including finance and procurement, corporate services, human resources, information technology, public affairs, 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 segment accountable for their allocated share of CSS costs. Certain costs are not attributable to any segment and remain unallocated in CSS, including costs for investor relations, public affairs and certain executive compensation. CSS costs attributable to the business segments are predominantly allocated to FMS, DTS and SCS as follows: • Finance, corporate services, and health and safety — allocated based upon estimated and planned resource utilization; • Human resources — allocated under various methods, including based on estimated utilization and number of personnel supported; • Information technology — principally allocated based upon utilization-related metrics such as number of users or minutes of CPU time. Customer-related project costs and expenses are allocated to the business segment responsible for the project; and • Other — represents legal and other centralized costs and expenses including certain share-based incentive compensation costs. Expenses, where allocated, are based primarily on the number of personnel supported. Our FMS segment leases revenue earning equipment and provides fuel, maintenance and other ancillary services to the DTS and SCS segments. EBT related to inter-segment equipment and services billed to DTS and SCS customers (equipment contribution) are included in both FMS and the segment that served the customer and then eliminated (presented as “Eliminations”). Inter-segment EBT allocated to DTS and SCS includes earnings related to equipment used in providing services to DTS and SCS customers. 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. The following tables set forth financial information for each of our segments and provide a reconciliation between segment EBT and earnings from continuing operations before income taxes for the three and nine months ended September 30, 2019 and 2018. Prior period segment amounts have been revised to reflect the adoption of ASC 842. FMS DTS SCS Eliminations Total (In thousands) For the three months ended September 30, 2019 Revenue from external customers $ 1,247,121 359,211 617,600 — 2,223,932 Inter-segment revenue 150,225 — — (150,225) — Total revenue $ 1,397,346 359,211 617,600 (150,225) 2,223,932 Segment EBT (1) $ (108,550) 18,490 34,595 (6,118) (61,583) Unallocated CSS (11,432) Non-operating pension costs (2) (6,885) Restructuring and other items, net (3) (11,360) Earnings from continuing operations before income taxes $ (91,260) Segment capital expenditures paid (4) $ 723,555 727 9,965 — 734,247 Unallocated CSS capital expenditures paid 12,224 Capital expenditures paid $ 746,471 For the three months ended September 30, 2018 Revenue from external customers 1,190,534 340,604 628,544 — 2,159,682 Inter-segment revenue 147,237 — — (147,237) — Total revenue 1,337,771 340,604 628,544 (147,237) 2,159,682 Segment EBT 97,782 13,929 36,516 (16,063) 132,164 Unallocated CSS (12,686) Non-operating pension costs (2) (1,161) Restructuring and other items, net (3) 546 Earnings from continuing operations before income taxes 118,863 Segment capital expenditures paid (4) 769,426 473 2,652 — 772,551 Unallocated CSS capital expenditures paid 6,154 Capital expenditures paid 778,705 ———————————— (1) FMS EBT includes higher depreciation expense as a result of the change in vehicle residual value estimates. See Note 4, "Revenue Earning Equipment, net," for additional information. (2) Non-operating pension costs include the amortization of net actuarial loss and prior service costs, interest costs and expected return on plan assets. (3) See Note 14, "Other Items Impacting Comparability," for additional information. (4) Excludes revenue earning equipment acquired under finance leases. FMS DTS SCS Eliminations Total (In thousands) For the nine months ended September 30, 2019 Revenue from external customers $ 3,675,594 1,071,076 1,902,582 — 6,649,252 Inter-segment revenue 464,261 — — (464,261) — Total revenue $ 4,139,855 1,071,076 1,902,582 (464,261) 6,649,252 Segment EBT (1) $ 10,107 63,034 112,686 (42,586) 143,241 Unallocated CSS (34,461) Non-operating pension costs (2) (20,060) Restructuring and other items, net (3) (27,374) Gain on sale of property (3) 18,614 Earnings from continuing operations before income taxes $ 79,960 Segment capital expenditures paid (4) $ 2,890,773 1,587 35,459 — 2,927,819 Unallocated CSS capital expenditures paid 29,413 Capital expenditures paid $ 2,957,232 For the nine months ended September 30, 2018 Revenue from external customers 3,455,820 970,196 1,727,775 — 6,153,791 Inter-segment revenue 420,730 — — (420,730) — Total revenue 3,876,550 970,196 1,727,775 (420,730) 6,153,791 Segment EBT 228,681 45,433 98,912 (44,644) 328,382 Unallocated CSS (34,336) Non-operating pension costs (2) (3,241) Restructuring and other items, net (3) (17,349) Earnings from continuing operations before income taxes 273,456 Segment capital expenditures paid (4) 2,150,490 1,115 31,268 — 2,182,873 Unallocated CSS capital expenditures paid 17,133 Capital expenditures paid 2,200,006 ———————————— (1) FMS EBT includes higher depreciation expense as a result of the change in vehicle residual value estimates. See Note 4, "Revenue Earning Equipment, net," for additional information. (2) Non-operating pension costs include the amortization of net actuarial loss and prior service costs, interest costs and expected return on plan assets. (3) See Note 14, "Other Items Impacting Comparability," for additional information. (4) Excludes revenue earning equipment acquired under capital leases. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Revenue Recognition | Revenue Recognition Lease & related maintenance and rental revenues includes ChoiceLease and commercial rental revenues from our Fleet Management Solutions (FMS) business segment. We offer a full service lease as well as a lease with more flexible maintenance options under our ChoiceLease product line, which are marketed, priced and managed as bundled products, that include the equipment lease, maintenance and other related services. We do not offer a stand-alone unbundled lease of new vehicles. We offer rental of vehicles under our commercial rental product line, which allows customers to supplement their fleet of vehicles on a short-term basis. Our ChoiceLease product includes the lease of a vehicle (lease component) and the executory agreement for the maintenance, insurance, taxes and other services (non-lease components) related to the leased vehicles during the lease term. We generally lease new vehicles to our customers. Consideration is allocated between the lease component and non-lease component based on management's best estimate of the relative stand-alone selling price of each component. Our ChoiceLease product provides for a fixed charge billing and a variable charge billing based on mileage or time usage. Fixed charges are typically billed at the beginning of the month and variable charges are typically billed a month in arrears. Revenue from the lease component of ChoiceLease agreements is recognized based on the classification of the arrangement, typically as either an operating or a sales-type lease. Our commercial rental product includes the short-term rental of a vehicle (one day up to one year in length). All of our rental arrangements are classified as operating leases and revenue is recognized on a straight-line basis. The majority of our leases are classified as operating leases and we recognize revenue for the lease component of the product line on a straight-line basis. The non-lease component for maintenance services is accounted for in accordance with revenue guidance in Revenue from Contracts with Customers (Topic 606) . Maintenance services are not typically performed evenly over the life of a ChoiceLease contract as the level of maintenance provided generally increases as vehicles age. We recognize maintenance revenue using an input method, consistent with the estimated pattern of the costs to maintain the underlying vehicles. This will generally result in the recognition of a contract liability for some portion of the customer's payments allocated to the maintenance service component of the arrangement. Included in lease & related maintenance and rental revenues is non-lease revenue from maintenance services of $235 million and $229 million for the three months ended September 30, 2019 and 2018, respectively, and $710 million and $677 million for the nine months ended September 30, 2019 and 2018, respectively. Effective with the adoption of Topic 842, we recorded an after-tax cumulative effect adjustment to decrease retained earnings as of January 1, 2017, by approximately $315 million primarily to recognize a contract liability (deferred revenue) related to maintenance services, which was partially offset by costs capitalized related to sales commissions. We recorded deferred revenue of $573 million and $566 million as of September 30, 2019 and December 31, 2018, respectively, related to the maintenance services component of our ChoiceLease product line. We also recorded capitalized sales commissions of $92 million and $93 million as of September 30, 2019 and December 31, 2018, respectively. Included in capitalized sales commissions are initial direct costs of our leases of $55 million and $53 million as of September 30, 2019 and December 31, 2018 related to incremental sales commissions paid to our sales force as a result of obtaining ChoiceLease contracts. Refer to Note 3, "Revenue," and Note 5, "Accrued Expenses and Other Liabilities" for further information. Lease and rental agreements do not usually provide for scheduled rent increases or escalations. However, most lease agreements allow for rate changes based upon changes in the Consumer Price Index (CPI). Lease and rental agreements also provide for vehicle usage charges based on a time charge and/or a fixed per-mile charge. The time charge, the per-mile charge and the changes in rates attributed to changes in the CPI are considered contingent rentals and are not considered fixed or determinable until the equipment usage or CPI change occurs. This consideration is allocated to the lease and non-lease components of the contract as it is billed to the customer based on the allocation determined at contract inception. Variable consideration allocated to the lease component is recognized in revenue on a straight-line basis for the remainder of the contract term and variable consideration allocated to the non-lease component is recognized in revenue using an input method, consistent with the estimated pattern of maintenance costs for the remainder of the contract term. Leases not classified as operating leases are generally considered sales-type leases. We recognize revenue for sales-type leases using the effective interest method, which provides a constant periodic rate of return on the outstanding investment in the lease. We generally lease new vehicles under our sales-type lease arrangements. Therefore, there is generally not a difference between the net investment in the lease and the carrying value of the vehicles, and we do not recognize selling profit or loss at lease commencement. Revenue is recognized net of amounts collected from customers for taxes, such as sales tax, that are remitted to the applicable taxing authorities. Significant Judgments and Estimates We allocate the contract consideration (excluding insurance) between the lease and maintenance components based on the relative standalone selling prices of each of those services and allocate contract consideration for insurance based on the price of insurance, which is priced separately. If the lessee elects to obtain insurance coverage from us, the consideration for the fixed monthly rate is allocated to the insurance performance obligations. Allocating consideration between lease and non-lease components in our ChoiceLease product requires significant judgment. We do not sell the components of our ChoiceLease product offering on a stand-alone basis. Judgment is required to determine the stand-alone selling prices of the lease and non-lease components in order to allocate the consideration on a relative stand-alone selling price basis. We determine the stand-alone price of the lease component using the projected cash flows of the lease assuming a certain targeted return. We consider a number of factors to determine the targeted return, including the net present value of the projected cash flows in a ChoiceLease arrangement discounted at our weighted average cost of capital. Our ChoiceLease arrangements include maintenance as a non-lease component of the contract. We determine the standalone price of the maintenance component using an expected cost plus margin approach. The expected costs are based on our historical costs of providing maintenance services in our ChoiceLease arrangements. The margin is based on historical margin percentages for our full service maintenance contracts in the SelectCare product line, as the maintenance performance obligation in those contracts is similar to maintenance in our ChoiceLease arrangements. Full service maintenance arrangements in SelectCare are priced based on targeted margin percentages for new and used vehicles by type of vehicle (trucks, tractors, and trailers), considering the fixed and variable costs of providing maintenance services. Certain ChoiceLease products include liability and/or physical damage insurance coverage to our customers. We charge a separate fixed monthly rate for these insurance offerings, which represents the standalone selling price. Variable consideration, such as billings for mileage and from changes in CPI, is excluded from the allocation of consideration at the inception of the contract. Revenues associated with licensing and operating taxes that are billed as incurred based on the contract arrangement are also excluded from the allocation of consideration at contract inception and allocated as earned. The variable consideration and licensing and operating tax revenues are allocated to the lease and maintenance components based on the same allocation percentages at contract inception (or the most recent contract modification) when earned. Contract Balances We do not have material contract assets as we generally invoice customers as we perform services. Contract receivables are recorded in “Receivables, net” in the Consolidated Condensed Balance Sheets. Payment terms vary by contract type, although terms generally include a requirement of payment within 15 to 90 days. As a practical expedient, we do not assess whether a contract has a significant financing component as the period between the receipt of customer payment and the transfer of service to the customer is less than a year. Our contract liabilities consist of deferred revenue related to maintenance services. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts that are refundable. We classify deferred revenue for performance obligations we expect to perform within 12 months as current liabilities and for performance obligations to be performed later than 12 months as other non-current liabilities. Revenue is recognized upon satisfaction of the performance obligation. |
Leases | Leases Leases as Lessor We lease revenue earning equipment to customers for periods generally ranging from three Leases as Lessee We lease facilities, revenue earning equipment, material handling equipment, automated washing machines, vehicles and office equipment. We determine if an arrangement is or contains a lease at inception. Effective with the adoption of Topic 842, we have established right-of-use (ROU) assets, which represent our right to use an underlying asset for the lease term and lease liabilities, which represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate of return, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Operating lease ROU assets also exclude lease incentives received. We pay variable lease charges related to property taxes, insurance and maintenance as well as changes in CPI for leased facilities; usage-based fees for revenue three five three |
Leases | Leases Leases as Lessor We lease revenue earning equipment to customers for periods generally ranging from three Leases as Lessee We lease facilities, revenue earning equipment, material handling equipment, automated washing machines, vehicles and office equipment. We determine if an arrangement is or contains a lease at inception. Effective with the adoption of Topic 842, we have established right-of-use (ROU) assets, which represent our right to use an underlying asset for the lease term and lease liabilities, which represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate of return, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Operating lease ROU assets also exclude lease incentives received. We pay variable lease charges related to property taxes, insurance and maintenance as well as changes in CPI for leased facilities; usage-based fees for revenue three five three |
Goodwill | GoodwillIn the third quarter of 2019, we performed an interim impairment test of our FMS North America reporting unit (“FMS NA”) as a result of the decline in market conditions and our updated outlook primarily in the used vehicle market, which negatively affects our forecasted cash flows from the sale of used vehicles. Our valuation of fair value for FMS NA was determined based on a discounted future cash flow model (income approach) and the application of current market multiples for comparable publicly-traded companies (market approach). There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of goodwill impairment. |
Recent Accounting Pronouncements | Cloud Computing Arrangements In August 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal Use Software (Topic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which amends Accounting Standards Codification (ASC) 350-40 to address a customer’s accounting for implementation costs incurred in a cloud computing arrangement (CCA) that is a service contract. ASU 2018-15 aligns the accounting for costs incurred to implement a CCA that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Entities are permitted to apply either a retrospective or prospective approach to adopt the guidance. We are currently evaluating the impact of the adoption of this update on our consolidated financial position, results of operations, and cash flows. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) . This pronouncement, along with ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments issued to clarify certain provisions of these ASUs, simplifies and clarifies the accounting and disclosure for hedging activities by more closely aligning the results of cash flow and fair value hedge accounting with the risk management activities of an entity. The amendments in this update are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. We adopted this standard during the first quarter of 2019 and it did not impact our consolidated financial position, results of operations, or cash flows. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326). This pronouncement, along with subsequent ASUs issued to clarify certain provisions of ASU 2016-13, modifies the measurement of expected credit losses of certain financial instruments, including our accounts receivable and net investments in sales-type leases. Among other things, these amendments require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The standard requires a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period in which the guidance is effective. Periods prior to the adoption date that are presented for comparative purposes are not adjusted. We are currently evaluating the impact of the adoption of this update on our consolidated financial position, results of operations, and cash flows. Leases In February 2016, the FASB issued Topic 842, which sets out the principles for the identification, measurement, recognition, presentation and disclosure of leases. The FASB issued a number of subsequent updates to the standard. Topic 842 impacts the accounting for both lessors and lessees. We have adopted the standard effective January 1, 2019, using the modified retrospective transition method and initial application date of January 1, 2017. For all our facilities and equipment that we lease, we have elected the practical expedient to combine lease and non-lease components. For our existing operating and finance leases that commenced before the date of initial application where we are the lessee, we have made an accounting policy election to use the incremental borrowing rate for our leases considering the remaining lease term and remaining minimum rental payments. After lease commencement of our operating leases where we are the lessee, unless the ROU assets are impaired, we have made an accounting policy election to subsequently measure operating lease ROU assets by amortizing the ROU assets, calculated as the difference between the straight line cost for the period (including amortization of initial direct costs) and the periodic accretion of the lease liability using the effective interest method. In calculating the change in ROU assets from a lease modification that decreases our rights as lessee to use one or more underlying assets, we have made an accounting policy election of remeasuring the ROU asset based on how much of the original right of use remains after modification. The new standard requires lessors to identify and evaluate the lease and non-lease components in arrangements containing a lease, provides clarification on the scope of non-lease components and provides more guidance on how to identify and separate the components. From a lessor perspective, the adoption of the new lease standard primarily impacts our ChoiceLease product line, which includes a vehicle lease as well as maintenance and other services. |
RECENT ACCOUNTING PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | doption of the new lease standard impacted our previously reported Consolidated Condensed Statements of Earnings and Comprehensive Income as follows (in millions, except per share amounts): Three months ended September 30, 2018 Nine months ended September 30, 2018 As Previously Lessor Lessee and Other As Previously Lessor Lessee and Other Reported Adjustments (1) Adjustments (1) As Revised Reported Adjustments (1) Adjustments (1) As Revised Lease & related maintenance and rental revenues $ 895.2 1.2 0.4 896.8 $ 2,577.4 2.0 1.0 2,580.4 Total revenues 2,158.1 1.2 0.4 2,159.7 6,150.9 2.0 1.0 6,153.8 Cost of lease & related maintenance and rental 649.4 (2.7) — 646.7 1,905.0 (9.9) — 1,895.1 Cost of services (2) 945.9 — 2.1 947.9 2,639.1 — 5.6 2,644.8 Other operating expenses 30.3 — (0.3) 30.0 94.8 — (1.1) 93.7 Selling, general and administrative expenses (2) 215.5 0.9 (0.8) 215.6 637.3 1.0 (2.2) 636.0 Used vehicle sales, net 3.0 0.2 — 3.2 16.4 (0.2) — 16.2 Interest expense 47.4 — 0.5 47.8 127.5 — 1.2 128.8 Restructuring and other items, net (2) 0.3 — (0.9) (0.5) 19.7 — (2.4) 17.3 Earnings from continuing operations before income taxes 116.1 2.9 (0.2) 118.9 262.5 11.2 (0.2) 273.5 Provision for income taxes 26.6 0.6 — 27.3 95.6 2.8 — 98.4 Earnings from continuing operations 89.5 2.3 (0.2) 91.6 167.0 8.4 (0.2) 175.1 Net earnings 88.8 2.3 (0.2) 90.8 164.5 8.4 (0.2) 172.6 Comprehensive income 100.6 1.9 — 102.5 156.4 9.5 — 165.9 Earnings per common share - Basic Continuing operations $ 1.70 0.04 — 1.74 $ 3.18 0.15 — 3.33 Net earnings $ 1.69 0.04 — 1.73 $ 3.13 0.15 — 3.28 Earnings per common share - Diluted Continuing operations $ 1.69 0.04 — 1.73 $ 3.15 0.16 — 3.31 Net earnings $ 1.68 0.04 — 1.72 $ 3.11 0.16 — 3.26 ———————————— (1) We determined that in a prior period certain lessor arrangements of revenue earning equipment historically accounted for as operating leases should have been accounted for as direct financing leases. Additionally, we evaluated our leases for classification and determined that certain lessee arrangements, primarily real estate leases, historically accounted for as operating leases should have been accounted for as capital leases. The prior period error was corrected by reducing "Lease & related maintenance and rental revenues" by approximately $5 million and $14 million during the three and nine months ended September 30, 2018, respectively. We also reduced depreciation expense (included in "Cost of lease & related maintenance and rental") by approximately $5 million and $14 million during the three and nine months ended September 30, 2018, respectively. We concluded these errors were not material to any of our previously issued consolidated financial statements. (2) Adjustments primarily reflect the reclassification of our Singapore operations into "Restructuring and other items, net," that were shut down during 2019. Note: Amounts may not be additive due to rounding. Adoption of the new lease standard impacted our previously reported Consolidated Condensed Balance Sheet as follows (in millions): December 31, 2018 As Previously Lessor Lessee Reported Adjustments (1) Adjustments (1) As Revised Receivables, net $ 1,219.4 22.6 — 1,242.1 Prepaid expenses and other current assets 201.6 (23.3) — 178.3 Total current assets 1,568.4 (0.7) — 1,567.7 Revenue earning equipment, net 9,498.0 (84.2) 2.2 9,416.0 Operating property and equipment, net 843.8 — 18.2 862.1 Sales-type leases and other assets 606.6 156.8 204.3 967.8 Total assets 13,051.1 72.0 224.7 13,347.8 Short-term debt and current portion of long term-debt 930.0 — 7.2 937.1 Accrued expenses and other current liabilities 630.5 145.1 72.2 847.7 Total current liabilities 2,292.3 145.1 79.3 2,516.7 Long-term debt 5,693.6 — 18.5 5,712.1 Other non-current liabilities 849.9 421.2 131.5 1,402.6 Deferred income taxes 1,304.8 (124.6) (0.5) 1,179.7 Total liabilities 10,140.8 441.7 228.8 10,811.2 Retained earnings 2,710.7 (369.6) (3.8) 2,337.3 Accumulated other comprehensive loss (911.3) (0.1) (0.2) (911.6) Total shareholders' equity 2,910.3 (369.7) (4.1) 2,536.6 Total liabilities and shareholders' equity 13,051.1 72.0 224.7 13,347.8 ———————————— (1) We determined that in a prior period certain lessor arrangements of revenue earning equipment historically accounted for as operating leases should have been accounted for as direct financing leases. Additionally, we evaluated our leases for classification and determined that certain lessee arrangements, primarily real estate leases, historically accounted for as operating leases should have been accounted for as capital leases. The prior period error was corrected by increasing "Receivables, net" by approximately $24 million and also increasing sales-type leases and other assets by approximately $65 million and reducing "Revenue earning equipment, net" by approximately $83 million. We concluded these errors were not material to any of our previously issued consolidated financial statements. Note: Amounts may not be additive due to rounding. Adoption of the new lease standard impacted our previously reported Consolidated Condensed Statements of Cash Flows as follows (in millions): Nine months ended September 30, 2018 As Previously Reported New Lease Standard Adjustments As Revised Net earnings $ 164.5 8.1 172.6 Earnings from continuing operations 167.0 8.1 175.1 Depreciation expense 1,028.5 (6.5) 1,022.0 Used vehicle sales, net 16.4 (0.2) 16.2 Amortization expense and other non-cash charges, net 21.2 83.7 104.9 Deferred income tax expense 103.1 2.8 105.9 Collections on sales-type leases and other items — 63.3 63.3 Changes in operating assets and liabilities: Prepaid expenses and other assets (27.2) (77.3) (104.5) Accrued expenses and other non-current liabilities (6.7) (10.7) (17.4) Net cash provided by operating activities from continuing operations 1,212.4 63.2 1,275.6 Debt repaid (466.1) (5.6) (471.7) Net cash provided by financing activities from continuing operations 784.9 (5.6) 779.2 Collections on direct finance leases and other items 57.6 (57.6) — Net cash used in investing activities from continuing operations (2,018.2) (57.6) (2,075.8) Note: Amounts may not be additive due to rounding. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Geographic Areas | The following tables disaggregate our revenue recognized by primary geographical market, major product/service lines, and industry. During 2019, we adopted Topic 842 and have retrospectively adjusted 2018 for the impact of this new standard. Primary Geographical Markets Three months ended September 30, 2019 FMS DTS SCS Eliminations Total (In thousands) United States $ 1,250,147 359,211 508,091 (144,941) 1,972,508 Canada 75,836 — 53,550 (5,284) 124,102 Europe 71,363 — — — 71,363 Mexico — — 55,959 — 55,959 Singapore — — — — — Total revenue $ 1,397,346 359,211 617,600 (150,225) 2,223,932 Three months ended September 30, 2018 FMS DTS SCS Eliminations Total (In thousands) United States (1) 1,185,548 340,604 524,974 (141,874) 1,909,252 Canada 75,859 — 45,587 (5,363) 116,083 Europe 76,364 — — — 76,364 Mexico (1) — — 51,927 — 51,927 Singapore — — 6,056 — 6,056 Total revenue 1,337,771 340,604 628,544 (147,237) 2,159,682 ———————————— (1) 2018 SCS total revenue amounts for the United States and Mexico include reclassifications to conform to the current period presentation. Nine months ended September 30, 2019 FMS DTS SCS Eliminations Total (In thousands) United States $ 3,687,721 1,071,076 1,577,106 (448,114) 5,887,789 Canada 226,240 — 156,803 (16,147) 366,896 Europe 225,894 — — — 225,894 Mexico — — 165,380 — 165,380 Singapore — — 3,293 — 3,293 Total revenue $ 4,139,855 1,071,076 1,902,582 (464,261) 6,649,252 Nine months ended September 30, 2018 FMS DTS SCS Eliminations Total (In thousands) United States (1) 3,410,737 970,196 1,427,196 (405,158) 5,402,971 Canada 226,161 — 136,428 (15,572) 347,017 Europe 239,652 — — — 239,652 Mexico (1) — — 146,029 — 146,029 Singapore — — 18,122 — 18,122 Total revenue 3,876,550 970,196 1,727,775 (420,730) 6,153,791 ———————————— (1) 2018 SCS total revenue amounts for the United States and Mexico include reclassifications to conform to the current period presentation. |
Disaggregation of Revenue | Major Products/Service Lines Three months ended September 30, 2019 FMS DTS SCS Eliminations Total (In thousands) ChoiceLease $ 779,811 — — (70,563) 709,248 SelectCare 133,434 — — (11,801) 121,633 Commercial rental 262,976 — — (13,035) 249,941 Fuel 198,669 — — (54,826) 143,843 Other 22,456 — — — 22,456 DTS — 359,211 — — 359,211 SCS — — 617,600 — 617,600 Total revenue $ 1,397,346 359,211 617,600 (150,225) 2,223,932 Three months ended September 30, 2018 FMS DTS SCS Eliminations Total (In thousands) ChoiceLease 717,951 — — (63,882) 654,069 SelectCare 125,850 — — (10,418) 115,432 Commercial rental 257,909 — — (15,190) 242,719 Fuel 214,534 — — (57,747) 156,787 Other 21,527 — — — 21,527 DTS — 340,604 — — 340,604 SCS — — 628,544 — 628,544 Total revenue 1,337,771 340,604 628,544 (147,237) 2,159,682 Nine months ended September 30, 2019 FMS DTS SCS Eliminations Total (In thousands) ChoiceLease $ 2,293,701 — — (209,301) 2,084,400 SelectCare 405,572 — — (35,863) 369,709 Commercial rental 752,995 — — (44,814) 708,181 Fuel 618,906 — — (174,283) 444,623 Other 68,681 — — — 68,681 DTS — 1,071,076 — — 1,071,076 SCS — — 1,902,582 — 1,902,582 Total revenue $ 4,139,855 1,071,076 1,902,582 (464,261) 6,649,252 Nine months ended September 30, 2018 FMS DTS SCS Eliminations Total (In thousands) ChoiceLease 2,109,908 — — (186,867) 1,923,041 SelectCare 372,989 — — (29,603) 343,386 Commercial rental 694,864 — — (37,536) 657,328 Fuel 633,571 — — (166,724) 466,847 Other 65,218 — — — 65,218 DTS — 970,196 — — 970,196 SCS — — 1,727,775 — 1,727,775 Total revenue 3,876,550 970,196 1,727,775 (420,730) 6,153,791 Industry Our SCS business segment includes revenue from the below industries: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Automotive $ 246,627 250,461 $ 761,593 690,138 Technology and healthcare 100,286 123,043 324,009 340,528 CPG and retail 217,901 210,966 660,581 544,019 Industrial and other 52,786 44,074 156,399 153,090 Total revenue $ 617,600 628,544 $ 1,902,582 1,727,775 |
REVENUE EARNING EQUIPMENT, NET
REVENUE EARNING EQUIPMENT, NET (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Earning Equipment [Abstract] | |
Summary of revenue earning equipment | September 30, 2019 December 31, 2018 Cost Accumulated Net Book Value (1) Cost Accumulated Net Book Value (1) (In thousands) Held for use: ChoiceLease $ 12,041,619 (4,049,919) 7,991,700 10,824,989 (3,645,655) 7,179,334 Commercial rental 3,403,483 (1,093,663) 2,309,820 3,152,908 (1,047,346) 2,105,562 Held for sale 533,855 (406,924) 126,931 467,093 (336,028) 131,065 Total $ 15,978,957 (5,550,506) 10,428,451 14,444,990 (5,029,029) 9,415,961 ———————————— |
Fair value, assets | The following table presents our assets held for sale that are measured at fair value on a nonrecurring basis and considered a Level 3 fair value measurement: Total Losses (2) Three months ended September 30, Nine months ended September 30, September 30, 2019 December 31, 2018 2019 2018 2019 2018 (In thousands) Assets held for sale: Revenue earning equipment (1) : Trucks $ 39,183 44,325 $ 10,269 9,713 $ 30,556 28,609 Tractors 44,285 35,397 14,430 1,317 34,451 6,795 Trailers 1,186 1,507 1,195 502 2,859 3,700 Total assets at fair value $ 84,654 81,229 $ 25,894 11,532 $ 67,866 39,104 ———————————— (1) Assets held for sale in the table above only include the portion of revenue earning equipment held for sale where net book values exceeded fair values and fair value adjustments were recorded. The net book value of assets held for sale that were less than fair value was $42 million and $50 million as of September 30, 2019 and December 31, 2018, respectively. (2) Total losses represent fair value adjustments for all vehicles reclassified to held for sale throughout the period for which fair value was less than net book value. |
Gain and losses revenue earning equipment | The components of used vehicle sales, net were as follows: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Gains on vehicle sales, net $ (3,160) (8,329) $ (18,775) (22,911) Losses from fair value adjustments 25,894 11,532 67,866 39,104 Used vehicle sales, net $ 22,734 3,203 $ 49,091 16,193 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Expenses and Other Liabilities | September 30, 2019 December 31, 2018 Accrued Non-Current Total Accrued Non-Current Total (In thousands) Salaries and wages $ 124,163 — 124,163 149,629 — 149,629 Deferred compensation 5,988 60,479 66,467 4,524 55,279 59,803 Pension benefits 3,767 457,697 461,464 3,754 456,979 460,733 Other postretirement benefits 1,393 18,565 19,958 1,387 18,097 19,484 Other employee benefits 17,220 — 17,220 28,370 — 28,370 Insurance obligations (1) 161,004 275,841 436,845 139,314 247,552 386,866 Operating taxes 110,044 — 110,044 100,399 — 100,399 Income taxes 7,290 18,368 25,658 3,491 18,477 21,968 Interest 43,304 — 43,304 39,522 — 39,522 Deposits, mainly from customers 80,722 3,116 83,838 80,401 3,390 83,791 Operating lease liabilities 72,888 144,834 217,722 73,422 137,384 210,806 Deferred revenue (2) 164,963 425,270 590,233 160,902 421,176 582,078 Restructuring liabilities (3) 2,157 — 2,157 7,595 — 7,595 Other 54,390 47,245 101,635 55,029 44,291 99,320 Total $ 849,293 1,451,415 2,300,708 847,739 1,402,625 2,250,364 ———————————— (1) Insurance obligations are primarily comprised of self-insured claim liabilities. (2) Deferred revenue is primarily related to the non-lease maintenance services component of our ChoiceLease product line. (3) The reduction in restructuring liabilities from December 31, 2018 principally represents cash payments for employee termination costs. The majority of the balance remaining in restructuring liabilities is expected to be paid by the end of 2019. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Lease Income - Operating | The components of lease income were as follows: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Operating leases Lease income related to lease payments $ 381,170 344,031 $ 1,116,029 1,013,728 Lease income related to commercial rental (1) 249,941 242,719 708,181 657,328 Sales type leases Interest income related to net investment in leases 11,169 9,555 33,057 29,075 Variable lease income excluding commercial rental (1) 69,641 60,845 183,489 169,478 ———————————— (1) Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% to 25% of total commercial rental income based on management's internal estimates. |
Schedule of Lease Income - Sales Type | The components of net investment in sales-type leases were as follows: September 30, 2019 December 31, 2018 (In thousands) Net investment in the lease — lease payment receivable $ 580,047 505,057 Net investment in the lease — unguaranteed residual value in assets 55,528 46,209 $ 635,575 551,266 ———————————— Note: The net investment in the sales-type lease shown above are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Condensed Balance Sheets. |
Schedule of Maturity of Sales-Type Lease Receivable | Maturities of sales-type lease receivables were as follows: September 30, 2019 December 31, 2018 (In thousands) 2019 (remaining three months ending December 31, 2019) $ 39,210 133,557 2020 168,652 136,924 2021 145,008 114,983 2022 115,490 85,146 2023 82,193 52,161 Thereafter 139,651 78,935 Total undiscounted cash flows 690,204 601,706 Present value of lease payments (recognized as lease receivables) (580,047) (505,057) Difference between undiscounted cash flows and discounted cash flows $ 110,157 96,649 |
Schedule of Maturity of Operating Lease Payments | Maturities of operating lease payments were as follows: September 30, 2019 December 31, 2018 (In thousands) 2019 (remaining three months ending December 31, 2019) $ 347,696 1,159,851 2020 1,211,789 892,721 2021 952,610 646,008 2022 673,422 421,050 2023 447,920 249,255 Thereafter 491,477 203,632 Total undiscounted cash flows $ 4,124,914 3,572,517 |
Schedule of Lease Cost, Cash Flow Information, Lease Term, and Discount Rate | The components of lease expense were as follows: Three months ended September 30, Nine months ended September 30, Classification 2019 2018 2019 2018 (In thousands) Finance lease cost Amortization of right-of-use assets Other operating expenses, SG&A $ 3,735 3,805 $ 10,257 10,787 Interest on lease liabilities Interest expense 638 689 1,916 1,886 Operating lease cost Other operating expenses, SG&A 23,722 23,063 70,578 64,506 Short-term lease and other Other operating expenses, SG&A 2,480 835 6,569 2,648 Variable lease cost Other operating expenses, SG&A 4,320 3,647 9,920 8,092 Sublease income Cost of lease & related maintenance and rental, cost of services (5,691) (6,490) (17,201) (19,050) Total lease cost $ 29,204 25,549 $ 82,039 68,869 Supplemental cash flow information related to leases was as follows: Nine months ended September 30, 2019 2018 (In thousands) Cash paid for amounts included in measurement of liabilities Operating cash flows from finance leases $ 1,916 1,886 Operating cash flows from operating leases 69,848 63,286 Financing cash flows from finance leases 14,650 13,420 Right-of-use assets obtained in exchange for lease obligations: Finance leases 15,336 12,889 Operating leases 70,365 96,295 |
Schedule of Leases, Assets and Liabilities | Supplemental balance sheet information relates to leases was as follows: Classification September 30, 2019 December 31, 2018 (In thousands) Assets Operating lease right-of-use assets Sales-type leases and other assets $ 209,556 203,834 Finance lease assets Operating property and equipment, net and revenue earning equipment, net 41,346 41,647 Total leased assets $ 250,902 245,481 Liabilities Current Operating Accrued expenses and other current liabilities $ 72,888 73,422 Finance Short-term debt and current portion of long-term debt 12,209 14,543 Noncurrent Operating Other non-current liabilities 144,834 137,384 Finance Long-term debt 36,351 32,909 Total lease liabilities $ 266,282 258,258 |
Schedule of Weighted Average Information | September 30, 2019 December 31, 2018 (In thousands) Weighted-average remaining lease term Operating 4 years 4 years Finance 6 years 7 years Weighted-average discount rate Operating 3.9 % 3.7 % Finance 7.2 % 8.0 % |
Schedule of Operating Lease Maturities | Maturities of operating and finance lease liabilities were as follows: Operating Finance Leases Total (In thousands) 2019 (remaining three months ending December 31, 2019) $ 22,200 3,962 26,162 2020 72,840 13,709 86,549 2021 51,964 12,048 64,012 2022 37,869 8,130 45,999 2023 26,558 5,532 32,090 Thereafter 23,570 14,178 37,748 Total lease payments 235,001 57,559 292,560 Less: Imputed Interest (17,279) (8,999) (26,278) Present value of lease liabilities $ 217,722 48,560 266,282 |
Schedule of Finance Lease Maturities | Maturities of operating and finance lease liabilities were as follows: Operating Finance Leases Total (In thousands) 2019 (remaining three months ending December 31, 2019) $ 22,200 3,962 26,162 2020 72,840 13,709 86,549 2021 51,964 12,048 64,012 2022 37,869 8,130 45,999 2023 26,558 5,532 32,090 Thereafter 23,570 14,178 37,748 Total lease payments 235,001 57,559 292,560 Less: Imputed Interest (17,279) (8,999) (26,278) Present value of lease liabilities $ 217,722 48,560 266,282 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Weighted-Average September 30, December 31, Maturities September 30, December 31, (In thousands) Short-term debt and current portion of long-term debt: Short-term debt 1.57% 2.69% $ 217,738 81,522 Current portion of long-term debt, including finance leases 722,953 855,609 Total short-term debt and current portion of long-term debt 940,691 937,131 Long-term debt: U.S. commercial paper (1) 2.30% 2.78% 2023 698,594 454,397 Canadian commercial paper (1) 2.00% 2.28% 2023 111,420 123,491 Trade receivables program —% 3.15% 2020 — 200,000 Global revolving credit facility 3.07% 2.25% 2023 3,000 12,581 Unsecured U.S. notes — Medium-term notes (1)(2) 3.21% 3.22% 2020-2025 5,564,895 4,853,496 Unsecured U.S. obligations 3.05% 3.50% 2024 200,000 50,000 Unsecured foreign obligations 2.80% 1.61% 2020-2024 83,984 216,719 Asset-backed U.S. obligations (3) 2.49% 2.37% 2019-2026 842,899 627,707 Finance lease obligations 7.19% 7.97% 2019-2073 48,560 47,452 Total long-term debt 7,553,352 6,585,843 Debt issuance costs (24,513) (18,088) 7,528,839 6,567,755 Current portion of long-term debt, including finance leases (722,953) (855,609) Long-term debt 6,805,886 5,712,146 Total debt $ 7,746,577 6,649,277 ———————————— (1) Amounts are net of unamortized original issue discounts of $7 million at September 30, 2019 and December 31, 2018, respectively. (2) Amounts are inclusive of fair market value adjustments on notes subject to hedging of $1 million and $10 million at September 30, 2019 and December 31, 2018, respectively. The notional amount of the executed interest rate swaps designated as fair value hedges was $525 million and $725 million at September 30, 2019 and December 31, 2018, respectively. Refer to Note 8, "Derivatives," for additional information. (3) Asset-backed U.S. obligations are related to financing transactions backed by a portion of our revenue earning equipment. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 Net Actuarial Loss (1) Prior Service Cost (1) Accumulated (In thousands) December 31, 2018 $ (199,713) (700,384) (11,537) (911,634) Amortization — 17,081 415 17,496 Other current period change (13,813) (7,203) — (21,016) September 30, 2019 $ (213,526) (690,506) (11,122) (915,154) Currency Net Actuarial Loss (1) Prior Service Cost (1) Accumulated (In thousands) December 31, 2017 (143,773) (560,153) (6,910) (710,836) Amortization — 15,784 238 16,022 Other current period change (21,866) (903) — (22,769) Adoption of new accounting standard (2) — (98,987) (1,580) (100,567) September 30, 2018 (165,639) (644,259) (8,252) (818,150) _______________________ (1) These amounts are included in the computation of net pension expense. See Note 13, "Employee Benefit Plans," for additional information. (2) Reflects the impact of adopting ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in 2018, which resulted in a reclassification of stranded tax effects caused by the 2017 Tax Cuts and Jobs Act from accumulated other comprehensive loss to retained earnings in the Consolidated Condensed Balance Sheet. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 (loss) per common share from continuing operations: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands, except per share amounts) Earnings (loss) per share — Basic: Earnings (loss) from continuing operations $ (91,538) 91,602 $ 29,804 175,084 Less: Distributed and undistributed earnings allocated (114) (333) (336) (630) Earnings (loss) from continuing operations available to common shareholders — Basic $ (91,652) 91,269 $ 29,468 174,454 Weighted average common shares outstanding — Basic 52,319 52,397 52,358 52,391 Earnings (loss) from continuing operations per common share — Basic $ (1.75) 1.74 $ 0.56 3.33 Earnings (loss) per share — Diluted: Earnings (loss) from continuing operations $ (91,538) 91,602 $ 29,804 175,084 Less: Distributed and undistributed earnings allocated (114) (333) (336) (630) Earnings (loss) from continuing operations available to common shareholders — Diluted $ (91,652) 91,269 $ 29,468 174,454 Weighted average common shares outstanding — Basic 52,319 52,397 52,358 52,391 Effect of dilutive equity awards — 373 199 349 Weighted average common shares outstanding — Diluted 52,319 52,770 52,557 52,740 Earnings (loss) from continuing operations per common share — Diluted $ (1.75) 1.73 $ 0.56 3.31 Anti-dilutive equity awards not included above 3,170 1,197 1,945 1,230 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Stock option and stock purchase plans $ 1,511 1,917 $ 4,986 5,688 Unvested stock 5,244 5,262 16,691 13,143 Share-based compensation expense 6,755 7,179 21,677 18,831 Income tax benefit (1,327) (1,388) (3,861) (3,617) Share-based compensation expense, net of tax $ 5,428 5,791 $ 17,816 15,214 |
Share-based Compensation, Activity | The following table is a summary of the awards granted under the Plans during the periods presented: Nine months ended September 30, 2019 2018 (Shares in thousands) Stock options 220 347 Performance-based restricted stock rights 228 200 Time-vested restricted stock rights 408 167 Total 856 714 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net pension expense were as follows: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Pension Benefits Company-administered plans: Service cost $ 2,449 3,074 $ 8,264 9,370 Interest cost 21,301 19,425 64,165 58,275 Expected return on plan assets (22,350) (25,187) (67,615) (76,086) Amortization of: Net actuarial loss 8,170 7,130 23,212 21,416 Prior service cost 167 145 533 434 9,737 4,587 28,559 13,409 Union-administered plans 2,718 2,469 7,876 7,339 Net pension expense $ 12,455 7,056 $ 36,435 20,748 Company-administered plans: U.S. $ 11,067 7,011 $ 33,199 21,033 Non-U.S. (1,330) (2,424) (4,640) (7,624) 9,737 4,587 28,559 13,409 Union-administered plans 2,718 2,469 7,876 7,339 Net pension expense $ 12,455 7,056 $ 36,435 20,748 |
OTHER ITEMS IMPACTING COMPARA_2
OTHER ITEMS IMPACTING COMPARABILITY (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Items Impacting Comparability Table | Excluding these items from our segment measure of performance allows for better year over year comparison: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Restructuring and other, net $ 5,234 (546) $ 13,757 1,836 ERP implementation costs 6,126 — 13,617 — Goodwill impairment — — — 15,513 Restructuring and other items, net 11,360 (546) 27,374 17,349 Gain on sale of property — — (18,614) — Total $ 11,360 (546) $ 8,760 17,349 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental cash flow information was as follows: Nine months ended September 30, 2019 2018 (In thousands) Interest paid $ 166,720 116,506 Income taxes paid 15,528 20,181 Changes in accounts payable related to purchases of revenue earning equipment 41,772 96,161 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Financial information of business segments | The following tables set forth financial information for each of our segments and provide a reconciliation between segment EBT and earnings from continuing operations before income taxes for the three and nine months ended September 30, 2019 and 2018. Prior period segment amounts have been revised to reflect the adoption of ASC 842. FMS DTS SCS Eliminations Total (In thousands) For the three months ended September 30, 2019 Revenue from external customers $ 1,247,121 359,211 617,600 — 2,223,932 Inter-segment revenue 150,225 — — (150,225) — Total revenue $ 1,397,346 359,211 617,600 (150,225) 2,223,932 Segment EBT (1) $ (108,550) 18,490 34,595 (6,118) (61,583) Unallocated CSS (11,432) Non-operating pension costs (2) (6,885) Restructuring and other items, net (3) (11,360) Earnings from continuing operations before income taxes $ (91,260) Segment capital expenditures paid (4) $ 723,555 727 9,965 — 734,247 Unallocated CSS capital expenditures paid 12,224 Capital expenditures paid $ 746,471 For the three months ended September 30, 2018 Revenue from external customers 1,190,534 340,604 628,544 — 2,159,682 Inter-segment revenue 147,237 — — (147,237) — Total revenue 1,337,771 340,604 628,544 (147,237) 2,159,682 Segment EBT 97,782 13,929 36,516 (16,063) 132,164 Unallocated CSS (12,686) Non-operating pension costs (2) (1,161) Restructuring and other items, net (3) 546 Earnings from continuing operations before income taxes 118,863 Segment capital expenditures paid (4) 769,426 473 2,652 — 772,551 Unallocated CSS capital expenditures paid 6,154 Capital expenditures paid 778,705 ———————————— (1) FMS EBT includes higher depreciation expense as a result of the change in vehicle residual value estimates. See Note 4, "Revenue Earning Equipment, net," for additional information. (2) Non-operating pension costs include the amortization of net actuarial loss and prior service costs, interest costs and expected return on plan assets. (3) See Note 14, "Other Items Impacting Comparability," for additional information. (4) Excludes revenue earning equipment acquired under finance leases. FMS DTS SCS Eliminations Total (In thousands) For the nine months ended September 30, 2019 Revenue from external customers $ 3,675,594 1,071,076 1,902,582 — 6,649,252 Inter-segment revenue 464,261 — — (464,261) — Total revenue $ 4,139,855 1,071,076 1,902,582 (464,261) 6,649,252 Segment EBT (1) $ 10,107 63,034 112,686 (42,586) 143,241 Unallocated CSS (34,461) Non-operating pension costs (2) (20,060) Restructuring and other items, net (3) (27,374) Gain on sale of property (3) 18,614 Earnings from continuing operations before income taxes $ 79,960 Segment capital expenditures paid (4) $ 2,890,773 1,587 35,459 — 2,927,819 Unallocated CSS capital expenditures paid 29,413 Capital expenditures paid $ 2,957,232 For the nine months ended September 30, 2018 Revenue from external customers 3,455,820 970,196 1,727,775 — 6,153,791 Inter-segment revenue 420,730 — — (420,730) — Total revenue 3,876,550 970,196 1,727,775 (420,730) 6,153,791 Segment EBT 228,681 45,433 98,912 (44,644) 328,382 Unallocated CSS (34,336) Non-operating pension costs (2) (3,241) Restructuring and other items, net (3) (17,349) Earnings from continuing operations before income taxes 273,456 Segment capital expenditures paid (4) 2,150,490 1,115 31,268 — 2,182,873 Unallocated CSS capital expenditures paid 17,133 Capital expenditures paid 2,200,006 ———————————— (1) FMS EBT includes higher depreciation expense as a result of the change in vehicle residual value estimates. See Note 4, "Revenue Earning Equipment, net," for additional information. (2) Non-operating pension costs include the amortization of net actuarial loss and prior service costs, interest costs and expected return on plan assets. (3) See Note 14, "Other Items Impacting Comparability," for additional information. (4) Excludes revenue earning equipment acquired under capital leases. |
GENERAL (Details)
GENERAL (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Jan. 01, 2017 | |
Disaggregation of Revenue [Line Items] | ||||||
Non-lease revenue from maintenance services | $ 2,223,932 | $ 2,159,682 | $ 6,649,252 | $ 6,153,791 | ||
Adjustment to retained earnings | 2,262,356 | 2,262,356 | $ 2,337,252 | |||
Deferred revenue | 590,233 | 590,233 | 582,078 | |||
Capitalized sales commissions | $ 106,000 | 106,000 | 107,000 | |||
Initial direct costs of leases | $ 55,000 | 53,000 | ||||
Lessee, lease terms | 12 months | 12 months | ||||
Lease renewal option (in years) | 5 years | 5 years | ||||
Operating and finance lease assets | $ 250,902 | $ 250,902 | 245,481 | |||
Percentage of fair value in excess of carrying amount | 5.00% | 5.00% | ||||
Goodwill | $ 474,814 | $ 474,814 | 475,206 | |||
Minimum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Payment term of contract with customer | 15 days | |||||
Lessor, lease terms | 1 day | 1 day | ||||
Maximum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Payment term of contract with customer | 90 days | |||||
Lessor, lease terms | 1 year | 1 year | ||||
Accounting Standards Update 2016-02 | Restatement Adjustment | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Adjustment to retained earnings | $ 315,000 | |||||
Maintenance Services | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Non-lease revenue from maintenance services | $ 235,000 | $ 229,000 | $ 710,000 | $ 677,000 | ||
Deferred revenue | 573,000 | 573,000 | 566,000 | |||
ChoiceLease | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Capitalized sales commissions | $ 92,000 | $ 92,000 | $ 93,000 | |||
ChoiceLease | Minimum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Lessor, lease terms | 3 years | 3 years | ||||
ChoiceLease | Maximum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Lessor, lease terms | 7 years | 7 years | ||||
Trucks and Tractors | Minimum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Lessor, lease terms | 3 years | 3 years | ||||
Trucks and Tractors | Maximum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Lessor, lease terms | 7 years | 7 years | ||||
Trailers | Maximum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Lessor, lease terms | 10 years | 10 years | ||||
Facility Leases | Minimum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Lessee, lease terms | 3 years | 3 years | ||||
Facility Leases | Maximum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Lessee, lease terms | 5 years | 5 years | ||||
Equipment Leases | Minimum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Lessee, lease terms | 3 years | 3 years | ||||
Equipment Leases | Maximum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Lessee, lease terms | 7 years | 7 years | ||||
FMS North America | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Goodwill | $ 244,000 | $ 244,000 |
RECENT ACCOUNTING PRONOUNCEME_4
RECENT ACCOUNTING PRONOUNCEMENTS Lease Standard - Effect on Statement of Consolidated Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease & related maintenance and rental revenues | $ 896,800 | $ 2,580,400 | ||
Total revenue | $ 2,223,932 | 2,159,682 | $ 6,649,252 | 6,153,791 |
Other operating expenses | 28,924 | 30,020 | 92,213 | 93,682 |
Selling, general and administrative expenses | 216,037 | 215,599 | 673,778 | 636,039 |
Used vehicle sales, net | 22,734 | 3,203 | 49,091 | 16,193 |
Interest expense | 62,475 | 47,846 | 178,570 | 128,757 |
Restructuring and other items, net | 11,360 | (546) | 27,374 | 17,349 |
Earnings (loss) from continuing operations before income taxes | (91,260) | 118,863 | 79,960 | 273,456 |
Provision for income taxes | 278 | 27,261 | 50,156 | 98,372 |
Earnings (loss) from continuing operations | (91,538) | 91,602 | 29,804 | 175,084 |
Net earnings | (91,455) | 90,842 | 29,076 | 172,636 |
Comprehensive income | $ (107,221) | $ 102,475 | $ 25,556 | $ 165,889 |
Earnings per common share - Basic | ||||
Continuing operations (in dollars per share) | $ (1.75) | $ 1.74 | $ 0.56 | $ 3.33 |
Net earnings (in dollars per share) | (1.75) | 1.73 | 0.55 | 3.28 |
Earnings per common share - Diluted | ||||
Continuing operations (in dollars per share) | (1.75) | 1.73 | 0.56 | 3.31 |
Net earnings (in dollars per share) | $ (1.75) | $ 1.72 | $ 0.55 | $ 3.26 |
Accounting Standards Update 2016-02 | As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease & related maintenance and rental revenues | $ 895,200 | $ 2,577,400 | ||
Total revenue | 2,158,100 | 6,150,900 | ||
Other operating expenses | 30,300 | 94,800 | ||
Selling, general and administrative expenses | 215,500 | 637,300 | ||
Used vehicle sales, net | 3,000 | 16,400 | ||
Interest expense | 47,400 | 127,500 | ||
Restructuring and other items, net | 300 | 19,700 | ||
Earnings (loss) from continuing operations before income taxes | 116,100 | 262,500 | ||
Provision for income taxes | 26,600 | 95,600 | ||
Earnings (loss) from continuing operations | 89,500 | 167,000 | ||
Net earnings | 88,800 | 164,500 | ||
Comprehensive income | $ 100,600 | $ 156,400 | ||
Earnings per common share - Basic | ||||
Continuing operations (in dollars per share) | $ 1.70 | $ 3.18 | ||
Net earnings (in dollars per share) | 1.69 | 3.13 | ||
Earnings per common share - Diluted | ||||
Continuing operations (in dollars per share) | 1.69 | 3.15 | ||
Net earnings (in dollars per share) | $ 1.68 | $ 3.11 | ||
Accounting Standards Update 2016-02 | New Lease Standard Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Used vehicle sales, net | $ (200) | |||
Earnings (loss) from continuing operations | 8,100 | |||
Net earnings | 8,100 | |||
Lease, Related Maintenance and Rental | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of services sold | $ 877,767 | $ 646,674 | $ 2,229,596 | 1,895,058 |
Lease, Related Maintenance and Rental | Accounting Standards Update 2016-02 | As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of services sold | 649,400 | 1,905,000 | ||
Service | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of services sold | $ 948,087 | 947,925 | $ 2,896,182 | 2,644,775 |
Service | Accounting Standards Update 2016-02 | As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of services sold | 945,900 | 2,639,100 | ||
Lessor Adjustments | Accounting Standards Update 2016-02 | New Lease Standard Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease & related maintenance and rental revenues | 1,200 | 2,000 | ||
Total revenue | 1,200 | 2,000 | ||
Other operating expenses | 0 | 0 | ||
Selling, general and administrative expenses | 900 | 1,000 | ||
Used vehicle sales, net | 200 | (200) | ||
Interest expense | 0 | 0 | ||
Restructuring and other items, net | 0 | 0 | ||
Earnings (loss) from continuing operations before income taxes | 2,900 | 11,200 | ||
Provision for income taxes | 600 | 2,800 | ||
Earnings (loss) from continuing operations | 2,300 | 8,400 | ||
Net earnings | 2,300 | 8,400 | ||
Comprehensive income | $ 1,900 | $ 9,500 | ||
Earnings per common share - Basic | ||||
Continuing operations (in dollars per share) | $ 0.04 | $ 0.15 | ||
Net earnings (in dollars per share) | 0.04 | 0.15 | ||
Earnings per common share - Diluted | ||||
Continuing operations (in dollars per share) | 0.04 | 0.16 | ||
Net earnings (in dollars per share) | $ 0.04 | $ 0.16 | ||
Lessor Adjustments | Lease, Related Maintenance and Rental | Accounting Standards Update 2016-02 | New Lease Standard Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of services sold | $ (2,700) | $ (9,900) | ||
Lessor Adjustments | Service | Accounting Standards Update 2016-02 | New Lease Standard Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of services sold | 0 | 0 | ||
Lessee and Other Adjustments | New Lease Standard Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease & related maintenance and rental revenues | 400 | 1,000 | ||
Total revenue | 400 | 1,000 | ||
Other operating expenses | (300) | (1,100) | ||
Selling, general and administrative expenses | (800) | (2,200) | ||
Used vehicle sales, net | 0 | 0 | ||
Interest expense | 500 | 1,200 | ||
Restructuring and other items, net | (900) | (2,400) | ||
Earnings (loss) from continuing operations before income taxes | (200) | (200) | ||
Provision for income taxes | 0 | 0 | ||
Earnings (loss) from continuing operations | (200) | (200) | ||
Net earnings | (200) | (200) | ||
Comprehensive income | $ 0 | $ 0 | ||
Earnings per common share - Basic | ||||
Continuing operations (in dollars per share) | $ 0 | $ 0 | ||
Net earnings (in dollars per share) | 0 | 0 | ||
Earnings per common share - Diluted | ||||
Continuing operations (in dollars per share) | 0 | 0 | ||
Net earnings (in dollars per share) | $ 0 | $ 0 | ||
Lessee and Other Adjustments | Lease, Related Maintenance and Rental | New Lease Standard Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of services sold | $ 0 | $ 0 | ||
Lessee and Other Adjustments | Service | New Lease Standard Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of services sold | 2,100 | 5,600 | ||
Prior Period Error | New Lease Standard Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease & related maintenance and rental revenues | (5,000) | (14,000) | ||
Prior Period Error | Lease, Related Maintenance and Rental | New Lease Standard Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of services sold | $ (5,000) | $ (14,000) |
RECENT ACCOUNTING PRONOUNCEME_5
RECENT ACCOUNTING PRONOUNCEMENTS Lease Standard - Effect on Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Receivables, net | $ 1,274,492 | $ 1,242,058 | |||||
Prepaid expenses and other current assets | 138,553 | 178,313 | |||||
Total current assets | 1,572,138 | 1,567,710 | |||||
Revenue earning equipment, net | 10,428,451 | 9,415,961 | |||||
Operating property and equipment, net | 891,689 | 862,054 | |||||
Sales-type leases and other assets | 967,800 | ||||||
Total assets | 14,482,844 | 13,347,808 | |||||
Short-term debt and current portion of long-term debt | 940,691 | 937,131 | |||||
Accrued expenses and other current liabilities | 849,293 | 847,739 | |||||
Total current liabilities | 2,532,852 | 2,516,746 | |||||
Long-term debt | 6,805,886 | 5,712,146 | |||||
Other non-current liabilities | 1,451,415 | 1,402,625 | |||||
Deferred income taxes | 1,215,704 | 1,179,723 | |||||
Total liabilities | 12,005,857 | 10,811,240 | |||||
Retained earnings | 2,262,356 | 2,337,252 | |||||
Accumulated other comprehensive loss | (915,154) | (911,634) | |||||
Total shareholders' equity | 2,476,987 | $ 2,607,706 | 2,536,568 | $ 2,539,750 | $ 2,460,859 | $ 2,453,577 | |
Total liabilities and shareholders' equity | 14,482,844 | 13,347,808 | |||||
Sales-type leases and other assets | $ 1,063,010 | 967,802 | |||||
Accounting Standards Update 2016-02 | As Previously Reported | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Receivables, net | 1,219,400 | ||||||
Prepaid expenses and other current assets | 201,600 | ||||||
Total current assets | 1,568,400 | ||||||
Revenue earning equipment, net | 9,498,000 | ||||||
Operating property and equipment, net | 843,800 | ||||||
Sales-type leases and other assets | 606,600 | ||||||
Total assets | 13,051,100 | ||||||
Short-term debt and current portion of long-term debt | 930,000 | ||||||
Accrued expenses and other current liabilities | 630,500 | ||||||
Total current liabilities | 2,292,300 | ||||||
Long-term debt | 5,693,600 | ||||||
Other non-current liabilities | 849,900 | ||||||
Deferred income taxes | 1,304,800 | ||||||
Total liabilities | 10,140,800 | ||||||
Retained earnings | 2,710,700 | ||||||
Accumulated other comprehensive loss | (911,300) | ||||||
Total shareholders' equity | 2,910,300 | ||||||
Total liabilities and shareholders' equity | 13,051,100 | ||||||
Accounting Standards Update 2016-02 | New Lease Standard Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | $ 315,000 | ||||||
Lessor Adjustments | Accounting Standards Update 2016-02 | New Lease Standard Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Receivables, net | 22,600 | ||||||
Prepaid expenses and other current assets | (23,300) | ||||||
Total current assets | (700) | ||||||
Revenue earning equipment, net | (84,200) | ||||||
Operating property and equipment, net | 0 | ||||||
Sales-type leases and other assets | 156,800 | ||||||
Total assets | 72,000 | ||||||
Short-term debt and current portion of long-term debt | 0 | ||||||
Accrued expenses and other current liabilities | 145,100 | ||||||
Total current liabilities | 145,100 | ||||||
Long-term debt | 0 | ||||||
Other non-current liabilities | 421,200 | ||||||
Deferred income taxes | (124,600) | ||||||
Total liabilities | 441,700 | ||||||
Retained earnings | (369,600) | ||||||
Accumulated other comprehensive loss | (100) | ||||||
Total shareholders' equity | (369,700) | ||||||
Total liabilities and shareholders' equity | 72,000 | ||||||
Lessee Adjustments | Accounting Standards Update 2016-02 | New Lease Standard Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Receivables, net | 0 | ||||||
Prepaid expenses and other current assets | 0 | ||||||
Total current assets | 0 | ||||||
Revenue earning equipment, net | 2,200 | ||||||
Operating property and equipment, net | 18,200 | ||||||
Sales-type leases and other assets | 204,300 | ||||||
Total assets | 224,700 | ||||||
Short-term debt and current portion of long-term debt | 7,200 | ||||||
Accrued expenses and other current liabilities | 72,200 | ||||||
Total current liabilities | 79,300 | ||||||
Long-term debt | 18,500 | ||||||
Other non-current liabilities | 131,500 | ||||||
Deferred income taxes | (500) | ||||||
Total liabilities | 228,800 | ||||||
Retained earnings | (3,800) | ||||||
Accumulated other comprehensive loss | (200) | ||||||
Total shareholders' equity | (4,100) | ||||||
Total liabilities and shareholders' equity | 224,700 | ||||||
Prior Period Error | New Lease Standard Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Receivables, net | 24,000 | ||||||
Revenue earning equipment, net | 83,000 | ||||||
Sales-type leases and other assets | $ 65,000 |
RECENT ACCOUNTING PRONOUNCEME_6
RECENT ACCOUNTING PRONOUNCEMENTS Lease Standard - Effect of Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net earnings (loss) | $ (91,455) | $ 90,842 | $ 29,076 | $ 172,636 |
Earnings from continuing operations | (91,538) | 91,602 | 29,804 | 175,084 |
Depreciation expense | 1,342,746 | 1,021,984 | ||
Used vehicle sales, net | $ 22,734 | 3,203 | 49,091 | 16,193 |
Amortization expense and other non-cash charges, net | 125,289 | 104,871 | ||
Deferred income tax expense | 32,157 | 105,893 | ||
Collections on sales-type leases | 89,995 | 63,335 | ||
Prepaid expenses and other assets | (19,439) | (104,473) | ||
Accrued expenses and other non-current liabilities | (50,300) | (17,429) | ||
Net cash provided by operating activities from continuing operations | 1,589,186 | 1,275,560 | ||
Debt repaid | (1,334,044) | (471,700) | ||
Net cash provided by financing activities from continuing operations | 976,560 | 779,236 | ||
Collections on direct finance leases and other items | 0 | |||
Net cash used in investing activities from continuing operations | $ (2,553,763) | (2,075,758) | ||
Accounting Standards Update 2016-02 | As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net earnings (loss) | 88,800 | 164,500 | ||
Earnings from continuing operations | 89,500 | 167,000 | ||
Depreciation expense | 1,028,500 | |||
Used vehicle sales, net | $ 3,000 | 16,400 | ||
Amortization expense and other non-cash charges, net | 21,200 | |||
Deferred income tax expense | 103,100 | |||
Collections on sales-type leases | 0 | |||
Prepaid expenses and other assets | (27,200) | |||
Accrued expenses and other non-current liabilities | (6,700) | |||
Net cash provided by operating activities from continuing operations | 1,212,400 | |||
Debt repaid | (466,100) | |||
Net cash provided by financing activities from continuing operations | 784,900 | |||
Collections on direct finance leases and other items | 57,600 | |||
Net cash used in investing activities from continuing operations | (2,018,200) | |||
Accounting Standards Update 2016-02 | New Lease Standard Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net earnings (loss) | 8,100 | |||
Earnings from continuing operations | 8,100 | |||
Depreciation expense | (6,500) | |||
Used vehicle sales, net | (200) | |||
Amortization expense and other non-cash charges, net | 83,700 | |||
Deferred income tax expense | 2,800 | |||
Collections on sales-type leases | 63,300 | |||
Prepaid expenses and other assets | (77,300) | |||
Accrued expenses and other non-current liabilities | (10,700) | |||
Net cash provided by operating activities from continuing operations | 63,200 | |||
Debt repaid | (5,600) | |||
Net cash provided by financing activities from continuing operations | (5,600) | |||
Collections on direct finance leases and other items | (57,600) | |||
Net cash used in investing activities from continuing operations | $ (57,600) |
REVENUE (Details)
REVENUE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Contract assets | $ 0 | $ 0 | $ 0 | ||
Trade receivables | 1,090,000,000 | 1,090,000,000 | 1,090,000,000 | ||
Amount of revenue recognized, previously included in deferred revenue | 41,000,000 | 142,000,000 | |||
Increase in deferred revenue during the period | 50,000,000 | 152,000,000 | |||
Contracted not recognized revenue | 2,800,000,000 | 2,800,000,000 | |||
Capitalized sales commissions | 106,000,000 | 106,000,000 | 107,000,000 | ||
Initial direct costs of leases | 55,000,000 | 53,000,000 | |||
Amortization of capitalized sales commissions | 11,000,000 | $ 11,000,000 | 32,000,000 | $ 28,000,000 | |
ChoiceLease | |||||
Disaggregation of Revenue [Line Items] | |||||
Capitalized sales commissions | $ 92,000,000 | $ 92,000,000 | $ 93,000,000 | ||
Minimum | |||||
Disaggregation of Revenue [Line Items] | |||||
Term of contract | 1 day | 1 day | |||
Minimum | ChoiceLease | |||||
Disaggregation of Revenue [Line Items] | |||||
Term of contract | 3 years | 3 years | |||
Minimum | DTS And SCS | |||||
Disaggregation of Revenue [Line Items] | |||||
Term of contract | 3 years | 3 years | |||
Maximum | |||||
Disaggregation of Revenue [Line Items] | |||||
Term of contract | 1 year | 1 year | |||
Maximum | ChoiceLease | |||||
Disaggregation of Revenue [Line Items] | |||||
Term of contract | 7 years | 7 years | |||
Maximum | DTS And SCS | |||||
Disaggregation of Revenue [Line Items] | |||||
Term of contract | 5 years | 5 years |
REVENUE Disaggregation of Reven
REVENUE Disaggregation of Revenue - Geographical (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 2,223,932 | $ 2,159,682 | $ 6,649,252 | $ 6,153,791 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,972,508 | 1,909,252 | 5,887,789 | 5,402,971 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 124,102 | 116,083 | 366,896 | 347,017 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 71,363 | 76,364 | 225,894 | 239,652 |
Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 55,959 | 51,927 | 165,380 | 146,029 |
Singapore | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 6,056 | 3,293 | 18,122 |
FMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,247,121 | 1,190,534 | 3,675,594 | 3,455,820 |
DTS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 359,211 | 340,604 | 1,071,076 | 970,196 |
SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 617,600 | 628,544 | 1,902,582 | 1,727,775 |
Operating Segments | FMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,397,346 | 1,337,771 | 4,139,855 | 3,876,550 |
Operating Segments | FMS | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,250,147 | 1,185,548 | 3,687,721 | 3,410,737 |
Operating Segments | FMS | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 75,836 | 75,859 | 226,240 | 226,161 |
Operating Segments | FMS | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 71,363 | 76,364 | 225,894 | 239,652 |
Operating Segments | FMS | Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | FMS | Singapore | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | DTS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 359,211 | 340,604 | 1,071,076 | 970,196 |
Operating Segments | DTS | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 359,211 | 340,604 | 1,071,076 | 970,196 |
Operating Segments | DTS | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | DTS | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | DTS | Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | DTS | Singapore | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 617,600 | 628,544 | 1,902,582 | 1,727,775 |
Operating Segments | SCS | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 508,091 | 524,974 | 1,577,106 | 1,427,196 |
Operating Segments | SCS | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 53,550 | 45,587 | 156,803 | 136,428 |
Operating Segments | SCS | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | SCS | Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 55,959 | 51,927 | 165,380 | 146,029 |
Operating Segments | SCS | Singapore | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 6,056 | 3,293 | 18,122 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (150,225) | (147,237) | (464,261) | (420,730) |
Eliminations | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (144,941) | (141,874) | (448,114) | (405,158) |
Eliminations | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (5,284) | (5,363) | (16,147) | (15,572) |
Eliminations | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Eliminations | Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Eliminations | Singapore | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Eliminations | FMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 150,225 | 147,237 | 464,261 | 420,730 |
Eliminations | DTS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Eliminations | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUE Disaggregated Revenue -
REVENUE Disaggregated Revenue - Major Products/Service Lines (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 2,223,932 | $ 2,159,682 | $ 6,649,252 | $ 6,153,791 |
ChoiceLease | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 709,248 | 654,069 | 2,084,400 | 1,923,041 |
SelectCare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 121,633 | 115,432 | 369,709 | 343,386 |
Commercial rental | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 249,941 | 242,719 | 708,181 | 657,328 |
Fuel | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 143,843 | 156,787 | 444,623 | 466,847 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 22,456 | 21,527 | 68,681 | 65,218 |
DTS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 359,211 | 340,604 | 1,071,076 | 970,196 |
SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 617,600 | 628,544 | 1,902,582 | 1,727,775 |
FMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,247,121 | 1,190,534 | 3,675,594 | 3,455,820 |
DTS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 359,211 | 340,604 | 1,071,076 | 970,196 |
SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 617,600 | 628,544 | 1,902,582 | 1,727,775 |
Operating Segments | FMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,397,346 | 1,337,771 | 4,139,855 | 3,876,550 |
Operating Segments | FMS | ChoiceLease | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 779,811 | 717,951 | 2,293,701 | 2,109,908 |
Operating Segments | FMS | SelectCare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 133,434 | 125,850 | 405,572 | 372,989 |
Operating Segments | FMS | Commercial rental | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 262,976 | 257,909 | 752,995 | 694,864 |
Operating Segments | FMS | Fuel | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 198,669 | 214,534 | 618,906 | 633,571 |
Operating Segments | FMS | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 22,456 | 21,527 | 68,681 | 65,218 |
Operating Segments | FMS | DTS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | FMS | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | DTS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 359,211 | 340,604 | 1,071,076 | 970,196 |
Operating Segments | DTS | ChoiceLease | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | DTS | SelectCare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | DTS | Commercial rental | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | DTS | Fuel | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | DTS | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | DTS | DTS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 359,211 | 340,604 | 1,071,076 | 970,196 |
Operating Segments | DTS | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 617,600 | 628,544 | 1,902,582 | 1,727,775 |
Operating Segments | SCS | ChoiceLease | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | SCS | SelectCare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | SCS | Commercial rental | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | SCS | Fuel | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | SCS | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | SCS | DTS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | SCS | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 617,600 | 628,544 | 1,902,582 | 1,727,775 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (150,225) | (147,237) | (464,261) | (420,730) |
Eliminations | ChoiceLease | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (70,563) | (63,882) | (209,301) | (186,867) |
Eliminations | SelectCare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (11,801) | (10,418) | (35,863) | (29,603) |
Eliminations | Commercial rental | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (13,035) | (15,190) | (44,814) | (37,536) |
Eliminations | Fuel | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (54,826) | (57,747) | (174,283) | (166,724) |
Eliminations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Eliminations | DTS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Eliminations | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Eliminations | FMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 150,225 | 147,237 | 464,261 | 420,730 |
Eliminations | DTS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Eliminations | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUE Disaggregation of Rev_2
REVENUE Disaggregation of Revenue - Industry (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 2,223,932 | $ 2,159,682 | $ 6,649,252 | $ 6,153,791 |
SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 617,600 | 628,544 | 1,902,582 | 1,727,775 |
Automotive | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 246,627 | 250,461 | 761,593 | 690,138 |
Technology and healthcare | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 100,286 | 123,043 | 324,009 | 340,528 |
CPG and retail | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 217,901 | 210,966 | 660,581 | 544,019 |
Industrial and other | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 52,786 | $ 44,074 | $ 156,399 | $ 153,090 |
REVENUE EARNING EQUIPMENT, NE_2
REVENUE EARNING EQUIPMENT, NET Schedule of Revenue Earning Equipment (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Revenue Earning Equipment [Line Items] | |||||
Cost | $ 15,978,957 | $ 15,978,957 | $ 14,444,990 | ||
Accumulated Depreciation | (5,550,506) | (5,550,506) | (5,029,029) | ||
Net Book Value | 10,428,451 | 10,428,451 | 9,415,961 | ||
Earnings from continuing operations before income taxes | $ (91,260) | $ 118,863 | 79,960 | $ 273,456 | |
Depreciation | $ 1,342,746 | $ 1,021,984 | |||
Basic earnings per share (in dollars per share) | $ (1.75) | $ 1.74 | $ 0.56 | $ 3.33 | |
Diluted earnings per share (in dollars per share) | $ (1.75) | $ 1.73 | $ 0.56 | $ 3.31 | |
ChoiceLease | |||||
Revenue Earning Equipment [Line Items] | |||||
Cost | $ 12,041,619 | $ 12,041,619 | 10,824,989 | ||
Accumulated Depreciation | (4,049,919) | (4,049,919) | (3,645,655) | ||
Net Book Value | 7,991,700 | 7,991,700 | 7,179,334 | ||
Commercial rental | |||||
Revenue Earning Equipment [Line Items] | |||||
Cost | 3,403,483 | 3,403,483 | 3,152,908 | ||
Accumulated Depreciation | (1,093,663) | (1,093,663) | (1,047,346) | ||
Net Book Value | 2,309,820 | 2,309,820 | 2,105,562 | ||
Held for sale | |||||
Revenue Earning Equipment [Line Items] | |||||
Cost | 533,855 | 533,855 | 467,093 | ||
Accumulated Depreciation | (406,924) | (406,924) | (336,028) | ||
Net Book Value | 126,931 | 126,931 | 131,065 | ||
Assets held under capital leases | |||||
Revenue Earning Equipment [Line Items] | |||||
Cost | 12,000 | 12,000 | 23,000 | ||
Accumulated Depreciation | (7,000) | (7,000) | $ (13,000) | ||
Salvage Value | |||||
Revenue Earning Equipment [Line Items] | |||||
Earnings from continuing operations before income taxes | $ 177,000 | 158,000 | |||
Depreciation | 117,000 | ||||
Policy depreciation | 52,000 | ||||
Valuation adjustment related to assets currently held for sale | $ 8,000 | ||||
Basic earnings per share (in dollars per share) | $ 3.01 | ||||
Diluted earnings per share (in dollars per share) | $ 3.01 |
REVENUE EARNING EQUIPMENT, NE_3
REVENUE EARNING EQUIPMENT, NET Level 3 Fair Value Measurement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Revenue Earning Equipment [Line Items] | |||||
Total losses | $ 25,894 | $ 11,532 | $ 67,866 | $ 39,104 | |
Net book value of assets held for sale | 42,000 | 42,000 | $ 50,000 | ||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | |||||
Revenue Earning Equipment [Line Items] | |||||
Assets held for sale | 84,654 | 84,654 | 81,229 | ||
Total losses | 25,894 | 11,532 | 67,866 | 39,104 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | Trucks | |||||
Revenue Earning Equipment [Line Items] | |||||
Assets held for sale | 39,183 | 39,183 | 44,325 | ||
Total losses | 10,269 | 9,713 | 30,556 | 28,609 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | Tractors | |||||
Revenue Earning Equipment [Line Items] | |||||
Assets held for sale | 44,285 | 44,285 | 35,397 | ||
Total losses | 14,430 | 1,317 | 34,451 | 6,795 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | Trailers | |||||
Revenue Earning Equipment [Line Items] | |||||
Assets held for sale | 1,186 | 1,186 | $ 1,507 | ||
Total losses | $ 1,195 | $ 502 | $ 2,859 | $ 3,700 |
REVENUE EARNING EQUIPMENT, NE_4
REVENUE EARNING EQUIPMENT, NET Recognized Gains on Used Vehicles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue Earning Equipment [Abstract] | ||||
Gains on vehicle sales, net | $ (3,160) | $ (8,329) | $ (18,775) | $ (22,911) |
Losses from fair value adjustments | 25,894 | 11,532 | 67,866 | 39,104 |
Used vehicle sales, net | $ 22,734 | $ 3,203 | $ 49,091 | $ 16,193 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accrued Expenses | ||
Salaries and wages | $ 124,163 | $ 149,629 |
Deferred compensation | 5,988 | 4,524 |
Pension benefits | 3,767 | 3,754 |
Other postretirement benefits | 1,393 | 1,387 |
Other employee benefits | 17,220 | 28,370 |
Insurance obligations | 161,004 | 139,314 |
Operating taxes | 110,044 | 100,399 |
Income taxes | 7,290 | 3,491 |
Interest | 43,304 | 39,522 |
Deposits, mainly from customers | 80,722 | 80,401 |
Operating lease liabilities | 72,888 | 73,422 |
Deferred revenue | 164,963 | 160,902 |
Restructuring liabilities | 2,157 | 7,595 |
Other | 54,390 | 55,029 |
Total | 849,293 | 847,739 |
Non-Current Liabilities | ||
Salaries and wages | 0 | 0 |
Deferred compensation | 60,479 | 55,279 |
Pension benefits | 457,697 | 456,979 |
Other postretirement benefits | 18,565 | 18,097 |
Other employee benefits | 0 | 0 |
Insurance obligations | 275,841 | 247,552 |
Operating taxes | 0 | 0 |
Income taxes | 18,368 | 18,477 |
Interest | 0 | 0 |
Deposits, mainly from customers | 3,116 | 3,390 |
Operating lease liabilities | 144,834 | 137,384 |
Deferred revenue | 425,270 | 421,176 |
Restructuring liabilities | 0 | 0 |
Other | 47,245 | 44,291 |
Total | 1,451,415 | 1,402,625 |
Total | ||
Salaries and wages | 124,163 | 149,629 |
Deferred compensation | 66,467 | 59,803 |
Pension benefits | 461,464 | 460,733 |
Other postretirement benefits | 19,958 | 19,484 |
Other employee benefits | 17,220 | 28,370 |
Insurance obligations | 436,845 | 386,866 |
Operating taxes | 110,044 | 100,399 |
Income taxes | 25,658 | 21,968 |
Interest | 43,304 | 39,522 |
Deposits, mainly from customers | 83,838 | 83,791 |
Operating lease liabilities | 217,722 | 210,806 |
Deferred revenue | 590,233 | 582,078 |
Restructuring liabilities | 2,157 | 7,595 |
Other | 101,635 | 99,320 |
Total | $ 2,300,708 | $ 2,250,364 |
LEASES (Details)
LEASES (Details) $ in Millions | Sep. 30, 2019USD ($) |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating leases, not yet commenced, term (in years) | 2 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating leases, not yet commenced, term (in years) | 5 years |
Facility Leases | |
Lessee, Lease, Description [Line Items] | |
Operating leases, not yet commenced | $ 7 |
LEASES - Lease Income (Details)
LEASES - Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating leases | ||||
Lease income related to lease payments | $ 381,170 | $ 344,031 | $ 1,116,029 | $ 1,013,728 |
Lease income related to commercial rental | 249,941 | 242,719 | 708,181 | 657,328 |
Sales type leases | ||||
Interest income related to net investment in leases | 11,169 | 9,555 | 33,057 | 29,075 |
Variable lease income excluding commercial rental | $ 69,641 | $ 60,845 | $ 183,489 | $ 169,478 |
Minimum | ||||
Sales type leases | ||||
Variable lease income as a percent of commercial rental income | 1500.00% | |||
Maximum | ||||
Sales type leases | ||||
Variable lease income as a percent of commercial rental income | 2500.00% |
LEASES - Components of Net Inve
LEASES - Components of Net Investment in Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Net investment in the lease — lease payment receivable | $ 580,047 | $ 505,057 |
Net investment in the lease — unguaranteed residual value in assets | 55,528 | 46,209 |
Net investment in lease | $ 635,575 | $ 551,266 |
LEASES - Maturity of Sales-Type
LEASES - Maturity of Sales-Type Lease Receivables, Lessor (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 (remaining three months ending December 31, 2019) | $ 39,210 | $ 133,557 |
2020 | 168,652 | 136,924 |
2021 | 145,008 | 114,983 |
2022 | 115,490 | 85,146 |
2023 | 82,193 | 52,161 |
Thereafter | 139,651 | 78,935 |
Total undiscounted cash flows | 690,204 | 601,706 |
Present value of lease payments (recognized as lease receivables) | (580,047) | (505,057) |
Difference between undiscounted cash flows and discounted cash flows | $ 110,157 | $ 96,649 |
LEASES - Maturity of Operating
LEASES - Maturity of Operating Lease Payments, Lessor (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 (remaining three months ending December 31, 2019) | $ 347,696 | $ 1,159,851 |
2020 | 1,211,789 | 892,721 |
2021 | 952,610 | 646,008 |
2022 | 673,422 | 421,050 |
2023 | 447,920 | 249,255 |
Thereafter | 491,477 | 203,632 |
Total undiscounted cash flows | $ 4,124,914 | $ 3,572,517 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Finance Lease, Cost [Abstract] | ||||
Amortization of right-of-use assets | $ 3,735 | $ 3,805 | $ 10,257 | $ 10,787 |
Interest on lease liabilities | 638 | 689 | 1,916 | 1,886 |
Operating lease cost | 23,722 | 23,063 | 70,578 | 64,506 |
Short-term lease and other | 2,480 | 835 | 6,569 | 2,648 |
Variable lease cost | 4,320 | 3,647 | 9,920 | 8,092 |
Sublease income | (5,691) | (6,490) | (17,201) | (19,050) |
Total lease cost | $ 29,204 | $ 25,549 | $ 82,039 | $ 68,869 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash paid for amounts included in measurement of liabilities | ||
Operating cash flows from finance leases | $ 1,916 | $ 1,886 |
Operating cash flows from operating leases | 69,848 | 63,286 |
Financing cash flows from finance leases | 14,650 | 13,420 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Finance leases | 15,336 | 12,889 |
Operating leases | $ 70,365 | $ 96,295 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Operating lease right-of-use assets | $ 209,556 | $ 203,834 |
Finance lease assets | 41,346 | 41,647 |
Total leased assets | 250,902 | 245,481 |
Current | ||
Operating | 72,888 | 73,422 |
Finance | 12,209 | 14,543 |
Noncurrent | ||
Operating | 144,834 | 137,384 |
Finance | 36,351 | 32,909 |
Total lease liabilities | $ 266,282 | $ 258,258 |
LEASES - Lease Term and Discoun
LEASES - Lease Term and Discount Rate (Details) | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Weighted-average remaining lease term, operating | 4 years | 4 years |
Weighted-average remaining lease term, finance | 6 years | 7 years |
Weighted-average discount rate, operating | 3.90% | 3.70% |
Weighted-average discount rate, finance | 7.20% | 8.00% |
LEASES - Maturity of Lease Liab
LEASES - Maturity of Lease Liabilities, Lessee (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Operating Leases | ||
2019 (remaining three months ending December, 31 2019 | $ 22,200 | |
2020 | 72,840 | |
2021 | 51,964 | |
2022 | 37,869 | |
2023 | 26,558 | |
Thereafter | 23,570 | |
Total lease payments | 235,001 | |
Less: Imputed Interest | (17,279) | |
Present value of lease liabilities | 217,722 | $ 210,806 |
Finance Leases | ||
2019 (remaining three months ending December 31, 2019) | 3,962 | |
2020 | 13,709 | |
2021 | 12,048 | |
2022 | 8,130 | |
2023 | 5,532 | |
Thereafter | 14,178 | |
Total lease payments | 57,559 | |
Less: Imputed Interest | (8,999) | |
Present value of lease liabilities | 48,560 | |
Total | ||
2019 (remaining three months ending December 31, 2019) | 26,162 | |
2020 | 86,549 | |
2021 | 64,012 | |
2022 | 45,999 | |
2023 | 32,090 | |
Thereafter | 37,748 | |
Total lease payments | 292,560 | |
Less: Imputed Interest | (26,278) | |
Present value of lease liabilities | $ 266,282 | $ 258,258 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) | Sep. 30, 2019 | May 31, 2019 | Dec. 31, 2018 |
Short-term debt and current portion of long-term debt: | |||
Short-term debt, weighted-average interest rate | 1.57% | 2.69% | |
Short-term debt | $ 217,738,000 | $ 81,522,000 | |
Current portion of long-term debt, including finance leases | 722,953,000 | 855,609,000 | |
Total short-term debt and current portion of long-term debt | 940,691,000 | 937,131,000 | |
Long-term debt: | |||
Commercial paper | 810,000,000 | 578,000,000 | |
Total long-term debt | 7,553,352,000 | 6,585,843,000 | |
Debt issuance costs | (24,513,000) | (18,088,000) | |
Total after fair market value adjustment | 7,528,839,000 | 6,567,755,000 | |
Current portion of long-term debt, including finance leases | (722,953,000) | (855,609,000) | |
Long-term debt | 6,805,886,000 | 5,712,146,000 | |
Total debt | 7,746,577,000 | 6,649,277,000 | |
Unamortized original issue discounts | 7,000,000 | 7,000,000 | |
Fair market value adjustment on notes subject to hedging | 1,000,000 | 10,000,000 | |
Aggregate notional amount of interest rate swaps | $ 525,000,000 | $ 725,000,000 | |
U.S. commercial paper | |||
Long-term debt: | |||
Long-term debt, weighted-average interest rate | 2.30% | 2.78% | |
Commercial paper | $ 698,594,000 | $ 454,397,000 | |
Canadian commercial paper | |||
Long-term debt: | |||
Long-term debt, weighted-average interest rate | 2.00% | 2.28% | |
Commercial paper | $ 111,420,000 | $ 123,491,000 | |
Trade receivables program | |||
Long-term debt: | |||
Long-term debt, weighted-average interest rate | 0.00% | 3.15% | |
Trade receivables program | $ 0 | $ 200,000,000 | |
Global Revolving Credit Facility | |||
Long-term debt: | |||
Long-term debt, weighted-average interest rate | 3.07% | 2.25% | |
Global revolving credit facility | $ 3,000,000 | $ 12,581,000 | |
Unsecured U.S. notes — Medium-term notes | |||
Long-term debt: | |||
Long-term debt, weighted-average interest rate | 3.21% | 3.22% | |
Unsecured U.S. notes - Medium-term notes | $ 5,564,895,000 | $ 4,853,496,000 | |
Unsecured U.S. obligations | |||
Long-term debt: | |||
Long-term debt, weighted-average interest rate | 3.05% | 3.50% | |
Unsecured U.S. obligations | $ 200,000,000 | $ 50,000,000 | |
Unsecured foreign obligations | |||
Long-term debt: | |||
Long-term debt, weighted-average interest rate | 2.80% | 1.61% | |
Obligations | $ 83,984,000 | $ 216,719,000 | |
Asset-backed U.S. obligations | |||
Long-term debt: | |||
Long-term debt, weighted-average interest rate | 2.49% | 2.37% | |
Obligations | $ 842,899,000 | $ 298,000,000 | $ 627,707,000 |
Finance lease obligations | |||
Long-term debt: | |||
Long-term debt, weighted-average interest rate | 7.19% | 7.97% | |
Finance lease obligations | $ 48,560,000 | $ 47,452,000 |
DEBT (Details)
DEBT (Details) | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2019USD ($)loan | Sep. 30, 2019USD ($)instution | Aug. 31, 2019USD ($) | Jun. 30, 2019USD ($) | May 31, 2019USD ($) | Feb. 28, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,400,000,000 | ||||||
Number of lending institutions | instution | 12 | ||||||
Annual facility fees, percentage | 0.10% | ||||||
Ratio of debt to consolidated net worth | 3 | ||||||
Debt to consolidated tangible net worth ratio | 219.00% | ||||||
Line of credit remaining capacity | $ 546,000,000 | ||||||
Commercial paper classified as long term debt | 810,000,000 | $ 578,000,000 | |||||
Short-term debt classified as long-term | 19,000,000 | 50,000,000 | |||||
Number of loans executed | loan | 2 | ||||||
Total available proceeds under trade receivables purchase and sale program | 225,000,000 | ||||||
Trade receivables borrowings | 0 | 200,000,000 | |||||
Letters of credit and surety bonds outstanding | 461,000,000 | 375,000,000 | |||||
Fair value of total debt | 7,000,000,000 | 6,000,000,000 | |||||
Global Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Current maturities classified as long-term debt | 400,000,000 | ||||||
Trade receivables program | |||||||
Debt Instrument [Line Items] | |||||||
Trade receivables borrowings | $ 0 | 200,000,000 | |||||
Unsecured U.S. obligations | |||||||
Debt Instrument [Line Items] | |||||||
Current maturities classified as long-term debt | 250,000,000 | ||||||
Unsecured medium term notes due September 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of unsecured medium-term notes issued | $ 550,000,000 | ||||||
Unsecured medium term notes due March 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of unsecured medium-term notes issued | $ 600,000,000 | ||||||
Unsecured medium term notes due June 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of unsecured medium-term notes issued | $ 550,000,000 | ||||||
Debt repurchase price, percentage | 101.00% | ||||||
Bank term loans due April 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of unsecured medium-term notes issued | $ 50,000,000 | ||||||
Bank term loans due March 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of unsecured medium-term notes issued | $ 100,000,000 | ||||||
Asset-backed U.S. obligations | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from financing transactions | $ 842,899,000 | $ 298,000,000 | $ 627,707,000 | ||||
Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 75,000,000 | ||||||
Letter of credit outstanding amount | $ 0 | ||||||
Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Annual facility fees, percentage | 0.075% | ||||||
Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Annual facility fees, percentage | 0.20% |
DERIVATIVES (Details)
DERIVATIVES (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | |||
Aggregate notional amount of interest rate swaps | $ 525,000,000 | $ 725,000,000 | |
Interest Rate Swap | Fair Value Hedging | |||
Derivative [Line Items] | |||
Aggregate notional amount of interest rate swaps | 525,000,000 | ||
Face value of medium-term notes | $ (10,000,000) | ||
Interest Rate Swap | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Aggregate notional amount of interest rate swaps | 215,000,000 | ||
Face value of medium-term notes | $ 9,000,000 | ||
Cross Currency Interest Rate Contract | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Aggregate notional amount of interest rate swaps | $ 50,000,000 |
SHARE REPURCHASE PROGRAMS (Deta
SHARE REPURCHASE PROGRAMS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2017 | |
Accelerated Share Repurchases [Line Items] | |||||
Common stock repurchases | $ 3,206 | $ 10,459 | $ 24,426 | $ 27,680 | |
December 2017 Program | |||||
Accelerated Share Repurchases [Line Items] | |||||
Common stock repurchases | $ 24,000 | $ 28,000 | |||
Common Stock | |||||
Accelerated Share Repurchases [Line Items] | |||||
Repurchased and retired shares (in shares) | 62,695 | 134,494 | 407,809 | 368,889 | |
Common stock repurchases | $ 31 | $ 67 | $ 204 | $ 184 | |
Common Stock | December 2017 Program | |||||
Accelerated Share Repurchases [Line Items] | |||||
Repurchased and retired shares (in shares) | 408,000 | 369,000 | |||
December 2017 Program | |||||
Accelerated Share Repurchases [Line Items] | |||||
Maximum number of share repurchases authorization (in shares) | 1,500,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2018 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 2,536,568 | $ 2,453,577 | ||
Amortization | 17,496 | 16,022 | ||
Other current period change | (21,016) | (22,769) | ||
Adoption of new accounting standard | $ (100,567) | |||
Ending balance | 2,476,987 | 2,539,750 | ||
Currency Translation Adjustments and Other | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (199,713) | (143,773) | ||
Amortization | 0 | 0 | ||
Other current period change | (13,813) | (21,866) | ||
Adoption of new accounting standard | 0 | |||
Ending balance | (213,526) | (165,639) | ||
Net Actuarial Loss | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (700,384) | (560,153) | ||
Amortization | 17,081 | 15,784 | ||
Other current period change | (7,203) | (903) | ||
Adoption of new accounting standard | (98,987) | |||
Ending balance | (690,506) | (644,259) | ||
Prior Service Cost | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (11,537) | (6,910) | ||
Amortization | 415 | 238 | ||
Other current period change | 0 | 0 | ||
Adoption of new accounting standard | (1,580) | |||
Ending balance | (11,122) | (8,252) | ||
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (911,634) | (710,836) | ||
Adoption of new accounting standard | [1] | $ (100,567) | ||
Ending balance | $ (915,154) | $ (818,150) | ||
[1] | Reflects the impact of adopting ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in 2018, which resulted in a reclassification of stranded tax effects caused by the 2017 Tax Cuts and Jobs Act from accumulated other comprehensive loss to retained earnings. |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings (loss) per share — Basic: | ||||
Earnings (loss) from continuing operations | $ (91,538) | $ 91,602 | $ 29,804 | $ 175,084 |
Less: Distributed and undistributed earnings allocated to unvested stock | (114) | (333) | (336) | (630) |
Earnings (loss) from continuing operations available to common shareholders — Basic | $ (91,652) | $ 91,269 | $ 29,468 | $ 174,454 |
Weighted average common shares outstanding - Basic (in shares) | 52,319 | 52,397 | 52,358 | 52,391 |
Earnings from continuing operations per common share - Basic (in dollars per share) | $ (1.75) | $ 1.74 | $ 0.56 | $ 3.33 |
Earnings (loss) per share — Diluted: | ||||
Earnings (loss) from continuing operations | $ (91,538) | $ 91,602 | $ 29,804 | $ 175,084 |
Less: Distributed and undistributed earnings allocated to unvested stock | (114) | (333) | (336) | (630) |
Earnings (loss) from continuing operations available to common shareholders — Diluted | $ (91,652) | $ 91,269 | $ 29,468 | $ 174,454 |
Weighted average common shares outstanding - Basic (in shares) | 52,319 | 52,397 | 52,358 | 52,391 |
Effect of dilutive equity awards (in shares) | 0 | 373 | 199 | 349 |
Weighted average common shares outstanding — Diluted (in shares) | 52,319 | 52,770 | 52,557 | 52,740 |
Earnings (loss) from continuing operations per common share - Diluted (in dollars per share) | $ (1.75) | $ 1.73 | $ 0.56 | $ 3.31 |
Anti-dilutive equity awards not included above (in shares) | 3,170 | 1,197 | 1,945 | 1,230 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS - Share-Based Compensation Expense and Income Tax Benefits Recognized During the Periods (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 6,755 | $ 7,179 | $ 21,677 | $ 18,831 |
Income tax benefit | (1,327) | (1,388) | (3,861) | (3,617) |
Share-based compensation expense, net of tax | 5,428 | 5,791 | 17,816 | 15,214 |
Stock option and stock purchase plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 1,511 | 1,917 | 4,986 | 5,688 |
Unvested stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 5,244 | $ 5,262 | $ 16,691 | $ 13,143 |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation cost not yet recognized | $ 44 |
Compensation cost not yet recognized, period for recognition | 1 year 10 months 24 days |
SHARE-BASED COMPENSATION PLAN_4
SHARE-BASED COMPENSATION PLANS - Summary of Awards Granted in Period (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total (in shares) | 856 | 714 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted in period (in shares) | 220 | 347 |
Performance-based restricted stock rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period, other than options (in shares) | 228 | 200 |
Time-vested restricted stock rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period, other than options (in shares) | 408 | 167 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Company-administered plans: | ||||
Contribution to pension plans | $ 26,000 | |||
Expected plan contributions | $ 34,000 | 34,000 | ||
Pension Benefits | ||||
Company-administered plans: | ||||
Net pension expense | 12,455 | $ 7,056 | 36,435 | $ 20,748 |
Company Administered Plan | Pension Benefits | ||||
Company-administered plans: | ||||
Service cost | 2,449 | 3,074 | 8,264 | 9,370 |
Interest cost | 21,301 | 19,425 | 64,165 | 58,275 |
Expected return on plan assets | (22,350) | (25,187) | (67,615) | (76,086) |
Net actuarial loss | 8,170 | 7,130 | 23,212 | 21,416 |
Prior service cost | 167 | 145 | 533 | 434 |
Net pension expense | 9,737 | 4,587 | 28,559 | 13,409 |
Union Administered Plan | Pension Benefits | ||||
Company-administered plans: | ||||
Net pension expense | 2,718 | 2,469 | 7,876 | 7,339 |
U.S. | Company Administered Plan | Pension Benefits | ||||
Company-administered plans: | ||||
Net pension expense | 11,067 | 7,011 | 33,199 | 21,033 |
Non-U.S. | Company Administered Plan | Pension Benefits | ||||
Company-administered plans: | ||||
Net pension expense | $ (1,330) | $ (2,424) | $ (4,640) | $ (7,624) |
OTHER ITEMS IMPACTING COMPARA_3
OTHER ITEMS IMPACTING COMPARABILITY (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Restructuring and other, net | $ 5,234 | $ (546) | $ 13,757 | $ 1,836 |
ERP implementation costs | 6,126 | 0 | 13,617 | 0 |
Goodwill impairment charge | 0 | 0 | 0 | 15,513 |
Restructuring and other items, net | 11,360 | (546) | 27,374 | 17,349 |
Gain on sale of property | 0 | 0 | (18,614) | 0 |
Total | 11,360 | (546) | 8,760 | 17,349 |
Provision for income taxes | $ 278 | $ 27,261 | $ 50,156 | $ 98,372 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 166,720 | $ 116,506 |
Income taxes paid | 15,528 | 20,181 |
Changes in accounts payable related to purchases of revenue earning equipment | $ 41,772 | $ 96,161 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 2,223,932 | $ 2,159,682 | $ 6,649,252 | $ 6,153,791 |
Segment EBT | (61,583) | 132,164 | 143,241 | 328,382 |
Unallocated CSS | (11,432) | (12,686) | (34,461) | (34,336) |
Non-operating pension costs | (6,885) | (1,161) | (20,060) | (3,241) |
Restructuring and other items, net | (11,360) | 546 | (27,374) | (17,349) |
Gain on sale of property | 0 | 0 | 18,614 | 0 |
Earnings (loss) from continuing operations before income taxes | (91,260) | 118,863 | 79,960 | 273,456 |
Segment capital expenditures paid | 734,247 | 772,551 | 2,927,819 | 2,182,873 |
Unallocated CSS capital expenditures paid | 12,224 | 6,154 | 29,413 | 17,133 |
Capital expenditures paid | 746,471 | 778,705 | 2,957,232 | 2,200,006 |
FMS | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,247,121 | 1,190,534 | 3,675,594 | 3,455,820 |
DTS | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 359,211 | 340,604 | 1,071,076 | 970,196 |
SCS | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 617,600 | 628,544 | 1,902,582 | 1,727,775 |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | (150,225) | (147,237) | (464,261) | (420,730) |
Segment EBT | (6,118) | (16,063) | (42,586) | (44,644) |
Segment capital expenditures paid | 0 | 0 | 0 | 0 |
Eliminations | FMS | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 150,225 | 147,237 | 464,261 | 420,730 |
Eliminations | DTS | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Eliminations | SCS | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | FMS | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,397,346 | 1,337,771 | 4,139,855 | 3,876,550 |
Segment EBT | (108,550) | 97,782 | 10,107 | 228,681 |
Segment capital expenditures paid | 723,555 | 769,426 | 2,890,773 | 2,150,490 |
Operating Segments | DTS | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 359,211 | 340,604 | 1,071,076 | 970,196 |
Segment EBT | 18,490 | 13,929 | 63,034 | 45,433 |
Segment capital expenditures paid | 727 | 473 | 1,587 | 1,115 |
Operating Segments | SCS | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 617,600 | 628,544 | 1,902,582 | 1,727,775 |
Segment EBT | 34,595 | 36,516 | 112,686 | 98,912 |
Segment capital expenditures paid | $ 9,965 | $ 2,652 | $ 35,459 | $ 31,268 |
Uncategorized Items - r-2019093
Label | Element | Value | |
Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 100,567,000 | [1] |
[1] | Reflects the impact of adopting ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in 2018, which resulted in a reclassification of stranded tax effects caused by the 2017 Tax Cuts and Jobs Act from accumulated other comprehensive loss to retained earnings. |