Cover
Cover | 6 Months Ended |
Jun. 30, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2021 |
Document Transition Report | false |
Entity File Number | 1-4364 |
Entity Registrant Name | RYDER SYSTEM, INC. |
Entity Incorporation, State or Country Code | FL |
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 |
City Area Code | (305) |
Local Phone Number | 500-3726 |
Title of 12(b) Security | Ryder System, Inc. Common Stock ($0.50 par value) |
Trading Symbol | R |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 53,773,599 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Central Index Key | 0000085961 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lease & related maintenance and rental revenues | $ 986,694 | $ 868,660 | $ 1,927,116 | $ 1,796,416 |
Total revenues | 2,382,237 | 1,895,282 | 4,603,859 | 4,056,588 |
Other operating expenses | 33,481 | 29,849 | 67,381 | 63,414 |
Selling, general and administrative expenses | 269,268 | 208,564 | 511,010 | 432,683 |
Non-operating pension costs, net | (373) | 936 | (382) | 2,157 |
Used vehicle sales, net | (51,634) | 9,488 | (80,485) | 30,172 |
Interest expense | 54,155 | 67,285 | 108,861 | 129,851 |
Miscellaneous (income) loss, net | (43,812) | (9,946) | (49,246) | (1,278) |
Restructuring and other items, net | 7,667 | 37,200 | 18,326 | 68,147 |
Total expenses | 2,178,664 | 1,990,059 | 4,330,019 | 4,264,999 |
Earnings (loss) from continuing operations before income taxes | 203,573 | (94,777) | 273,840 | (208,411) |
Provision for (benefit from) income taxes | 54,005 | (21,072) | 72,688 | (25,577) |
Earnings (loss) from continuing operations | 149,568 | (73,705) | 201,152 | (182,834) |
Earnings (loss) from discontinued operations, net of tax | (463) | (394) | (1,222) | (878) |
Net earnings (loss) | $ 149,105 | $ (74,099) | $ 199,930 | $ (183,712) |
Earnings (loss) per common share — Basic | ||||
Continuing operations (in dollars per share) | $ 2.84 | $ (1.41) | $ 3.83 | $ (3.50) |
Discontinued operations (in dollars per share) | (0.01) | (0.01) | (0.02) | (0.02) |
Net earnings (loss) (in dollars per share) | 2.83 | (1.42) | 3.80 | (3.52) |
Earnings (loss) per common share — Diluted | ||||
Continuing operations (in dollars per share) | 2.78 | (1.41) | 3.75 | (3.50) |
Discontinued operations (in dollars per share) | (0.01) | (0.01) | (0.02) | (0.02) |
Net earnings (loss) (in dollars per share) | $ 2.77 | $ (1.42) | $ 3.73 | $ (3.52) |
Cost of lease & related maintenance and rental | ||||
Cost of services sold | $ 708,737 | $ 775,350 | $ 1,438,881 | $ 1,593,642 |
Services revenue | ||||
Revenue | 1,276,140 | 942,267 | 2,441,628 | 2,054,455 |
Cost of services sold | 1,091,725 | 793,353 | 2,091,517 | 1,747,782 |
Fuel services revenue | ||||
Revenue | 119,403 | 84,355 | 235,115 | 205,717 |
Cost of services sold | $ 109,450 | $ 77,980 | $ 224,156 | $ 198,429 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 149,105 | $ (74,099) | $ 199,930 | $ (183,712) |
Other comprehensive income (loss): | ||||
Changes in cumulative translation adjustment and unrealized losses from cash flow hedges | 9,551 | 7,878 | 18,491 | (76,742) |
Amortization of pension and postretirement items | 6,951 | 7,371 | 13,967 | 15,150 |
Income tax expense related to amortization of pension and postretirement items | (1,453) | (1,492) | (2,971) | (3,105) |
Amortization of pension and postretirement items, net of taxes | 5,498 | 5,879 | 10,996 | 12,045 |
Change in net actuarial loss and prior service cost | 116 | (4,539) | 116 | (4,539) |
Income tax (expense) benefit related to change in net actuarial loss and prior service cost | (80) | 1,087 | (80) | 1,087 |
Change in net actuarial loss and prior service cost, net of taxes | 36 | (3,452) | 36 | (3,452) |
Other comprehensive income (loss), net of taxes | 15,085 | 10,305 | 29,523 | (68,149) |
Comprehensive income (loss) | $ 164,190 | $ (63,794) | $ 229,453 | $ (251,861) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 267,992 | $ 151,294 |
Receivables, net | 1,298,905 | 1,182,350 |
Inventories | 62,707 | 61,191 |
Prepaid expenses and other current assets | 159,260 | 200,694 |
Total current assets | 1,788,864 | 1,595,529 |
Revenue earning equipment, net | 8,531,099 | 8,777,015 |
Operating property and equipment, net of accumulated depreciation of $1,240,575 and $1,212,164 | 932,549 | 927,058 |
Goodwill | 475,553 | 475,245 |
Intangible assets, net | 39,814 | 43,216 |
Sales-type leases and other assets | 1,135,157 | 1,113,891 |
Total assets | 12,903,036 | 12,931,954 |
Current liabilities: | ||
Short-term debt and current portion of long-term debt | 1,362,669 | 516,581 |
Accounts payable | 672,553 | 547,389 |
Accrued expenses and other current liabilities | 1,020,832 | 989,178 |
Total current liabilities | 3,056,054 | 2,053,148 |
Long-term debt | 4,873,002 | 6,093,655 |
Other non-current liabilities | 1,371,053 | 1,403,861 |
Deferred income taxes | 1,184,713 | 1,125,733 |
Total liabilities | 10,484,822 | 10,676,397 |
Commitments and Contingencies | ||
Shareholders’ equity: | ||
Preferred stock, no par value per share — authorized, 3,800,917; none outstanding, June 30, 2021 and December 31, 2020 | 0 | 0 |
Common stock, $0.50 par value per share — authorized, 400,000,000; outstanding, June 30, 2021 — 53,773,599 and December 31, 2020 — 53,732,033 | 26,886 | 26,866 |
Additional paid-in capital | 1,163,267 | 1,132,954 |
Retained earnings | 2,015,743 | 1,912,942 |
Accumulated other comprehensive loss | (787,682) | (817,205) |
Total shareholders’ equity | 2,418,214 | 2,255,557 |
Total liabilities and shareholders’ equity | $ 12,903,036 | $ 12,931,954 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 1,240,575 | $ 1,212,164 |
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) | 53,773,599 | 53,732,033 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities from continuing operations: | ||
Net earnings (loss) | $ 199,930 | $ (183,712) |
Less: Loss from discontinued operations, net of tax | (1,222) | (878) |
Earnings (loss) from continuing operations | 201,152 | (182,834) |
Depreciation expense | 905,420 | 1,056,171 |
Used vehicle sales, net | (80,485) | 30,172 |
Amortization expense and other non-cash charges, net | 26 | 74,854 |
Non-cash lease expense | 46,599 | 45,055 |
Non-operating pension costs, net and share-based compensation expense | 22,912 | 12,787 |
Deferred income tax expense (benefit) | 56,397 | (36,148) |
Collections on sales-type leases | 62,778 | 54,724 |
Changes in operating assets and liabilities: | ||
Receivables | (105,319) | 69,212 |
Inventories | (1,422) | 18,680 |
Prepaid expenses and other assets | 945 | (7,338) |
Accounts payable | 65,771 | (54,434) |
Accrued expenses and other non-current liabilities | (43,541) | 17,884 |
Net cash provided by operating activities from continuing operations | 1,131,233 | 1,098,785 |
Cash flows from investing activities from continuing operations: | ||
Purchases of property and revenue earning equipment | (904,399) | (704,930) |
Sales of revenue earning equipment | 330,277 | 214,189 |
Sales of operating property and equipment | 44,409 | 4,231 |
Other | (3,695) | (5,756) |
Net cash used in investing activities from continuing operations | (533,408) | (492,266) |
Cash flows from financing activities from continuing operations: | ||
Net repayments of commercial paper and other | (198,560) | (603,086) |
Debt proceeds | 0 | 2,074,189 |
Debt repayments | (189,699) | (1,236,255) |
Dividends on common stock | (60,826) | (60,155) |
Common stock issued | 20,552 | 1,240 |
Common stock repurchased | (48,978) | (11,924) |
Other | (1,460) | (9,277) |
Net cash provided by (used in) financing activities from continuing operations | (478,971) | 154,732 |
Effect of exchange rate changes on cash and cash equivalents | (2,369) | (3,022) |
Increase (decrease) in cash and cash equivalents from continuing operations | 116,485 | 758,229 |
Increase (decrease) in cash and cash equivalents from discontinued operations | 213 | (344) |
Increase (decrease) in cash and cash equivalents | 116,698 | 757,885 |
Cash and cash equivalents at beginning of year | 151,294 | 73,584 |
Cash and cash equivalents at end of period | $ 267,992 | $ 831,469 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2019 | $ 2,476,310 | $ (5,077) | $ 0 | $ 26,639 | $ 1,108,649 | $ 2,177,513 | $ (5,077) | $ (836,491) |
Beginning balance (in shares) at Dec. 31, 2019 | 53,278,316 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Comprehensive income (loss) | (251,861) | (183,712) | (68,149) | |||||
Common stock dividends declared | (60,226) | (60,226) | ||||||
Common stock issued under employee stock award and stock purchase plans and other (in shares) | 843,623 | |||||||
Common stock issued under employee stock award and stock purchase plans and other | 1,240 | $ 422 | 818 | |||||
Common stock repurchases (in shares) | (303,098) | |||||||
Common stock repurchases | (11,924) | $ (152) | (6,214) | (5,558) | ||||
Share-based compensation | 10,630 | 10,630 | ||||||
Ending balance at Jun. 30, 2020 | 2,159,092 | 0 | $ 26,909 | 1,113,883 | 1,922,940 | (904,640) | ||
Ending balance (in shares) at Jun. 30, 2020 | 53,818,841 | |||||||
Beginning balance at Mar. 31, 2020 | 2,242,736 | 0 | $ 26,867 | 1,103,928 | 2,026,886 | (914,945) | ||
Beginning balance (in shares) at Mar. 31, 2020 | 53,735,964 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Comprehensive income (loss) | (63,794) | (74,099) | 10,305 | |||||
Common stock dividends declared | (29,847) | (29,847) | ||||||
Common stock issued under employee stock award and stock purchase plans and other (in shares) | 82,877 | |||||||
Common stock issued under employee stock award and stock purchase plans and other | 2,458 | $ 42 | 2,416 | |||||
Share-based compensation | 7,539 | 7,539 | ||||||
Ending balance at Jun. 30, 2020 | 2,159,092 | 0 | $ 26,909 | 1,113,883 | 1,922,940 | (904,640) | ||
Ending balance (in shares) at Jun. 30, 2020 | 53,818,841 | |||||||
Beginning balance at Dec. 31, 2020 | $ 2,255,557 | 0 | $ 26,866 | 1,132,954 | 1,912,942 | (817,205) | ||
Beginning balance (in shares) at Dec. 31, 2020 | 53,732,033 | 53,732,033 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Comprehensive income (loss) | $ 229,453 | 199,930 | 29,523 | |||||
Common stock dividends declared | (61,664) | (61,664) | ||||||
Common stock issued under employee stock award and stock purchase plans and other (in shares) | 679,567 | |||||||
Common stock issued under employee stock award and stock purchase plans and other | 20,552 | $ 339 | 20,213 | |||||
Common stock repurchases (in shares) | (638,001) | |||||||
Common stock repurchases | (48,978) | $ (319) | (13,194) | (35,465) | ||||
Share-based compensation | 23,294 | 23,294 | ||||||
Ending balance at Jun. 30, 2021 | $ 2,418,214 | 0 | $ 26,886 | 1,163,267 | 2,015,743 | (787,682) | ||
Ending balance (in shares) at Jun. 30, 2021 | 53,773,599 | 53,773,599 | ||||||
Beginning balance at Mar. 31, 2021 | $ 2,279,687 | 0 | $ 26,935 | 1,135,644 | 1,919,875 | (802,767) | ||
Beginning balance (in shares) at Mar. 31, 2021 | 53,870,387 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Comprehensive income (loss) | 164,190 | 149,105 | 15,085 | |||||
Common stock dividends declared | (31,095) | (31,095) | ||||||
Common stock issued under employee stock award and stock purchase plans and other (in shares) | 253,256 | |||||||
Common stock issued under employee stock award and stock purchase plans and other | 22,349 | $ 126 | 22,223 | |||||
Common stock repurchases (in shares) | (350,044) | |||||||
Common stock repurchases | (29,534) | $ (175) | (7,217) | (22,142) | ||||
Share-based compensation | 12,617 | 12,617 | ||||||
Ending balance at Jun. 30, 2021 | $ 2,418,214 | $ 0 | $ 26,886 | $ 1,163,267 | $ 2,015,743 | $ (787,682) | ||
Ending balance (in shares) at Jun. 30, 2021 | 53,773,599 | 53,773,599 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.56 | $ 0.56 | $ 1.12 | $ 1.12 |
GENERAL
GENERAL | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
GENERAL | GENERAL Interim Financial Statements The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Ryder System, Inc. (Ryder) and all entities in which Ryder has a controlling voting interest (subsidiaries) and variable interest entities (VIE) required to be consolidated in accordance with generally accepted accounting principles in the United States (GAAP). The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the accounting policies described in our 2020 Annual Report on Form 10-K and should be read in conjunction with the Consolidated Financial Statements and notes thereto. The year-end condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, all adjustments, including 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 not necessarily indicative of the results that can be expected for a full year. We adjusted our presentation of the revolving credit facility proceeds and repayments in the Condensed Consolidated Statements of Cash Flows for 2020 from a net basis to reflect a gross basis. We report our financial performance based on three business segments: (1) Fleet Management Solutions (FMS), which provides full service leasing and leasing with flexible maintenance options, commercial rental and maintenance services of trucks, tractors and trailers to customers principally in the United States (U.S.), Canada and the United Kingdom (U.K.); (2) Supply Chain Solutions (SCS), which provides integrated logistics solutions, including distribution management, dedicated transportation, transportation management, last mile and professional services in North America; and (3) Dedicated Transportation Solutions (DTS), which provides turnkey transportation solutions in the U.S. that includes dedicated vehicles, drivers, management, and administrative support. Dedicated transportation services provided as part of an operationally integrated, multi-service, supply chain solution to SCS customers are primarily reported in the SCS business segment. The COVID-19 effects negatively impacted several areas of our businesses, particularly in the first half of 2020. While we are experiencing positive momentum in our businesses, any additional negative effects of the pandemic may have a further impact on our business and financial results, as well as on significant judgments and estimates, including those related to goodwill and other asset impairments, residual values and other depreciation assumptions, deferred income taxes and annual effective tax rates, variable revenue considerations, the valuation of our pension plans, and allowance for credit losses. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Reference Rate Reform In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848). This update provides optional expedients for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another rate expected to be discontinued at the end of 2021 because of reference rate reform. The update is effective for all transactions between March 12, 2020 through December 31, 2022. We continuously evaluate the impact on our consolidated financial position, results of operations, and cash flows. Leases |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Disaggregation of Revenue The following tables disaggregate our revenue recognized by primary geographical market by our reportable business segments and by industry for SCS. Refer to Note 18, "Segment Reporting," for the disaggregation of our revenue by major products/service lines. Primary Geographical Markets Three months ended June 30, 2021 FMS SCS DTS Eliminations Total (In thousands) United States $ 1,263,250 $ 661,715 $ 354,711 $ (148,052) $ 2,131,624 Canada 76,849 58,735 — (8,293) 127,291 Europe 68,142 — — — 68,142 Mexico — 55,180 — — 55,180 Total revenues $ 1,408,241 $ 775,630 $ 354,711 $ (156,345) $ 2,382,237 Three months ended June 30, 2020 FMS SCS DTS Eliminations Total (In thousands) United States $ 1,081,448 $ 441,332 $ 293,944 $ (112,925) $ 1,703,799 Canada 60,480 40,288 — (3,232) 97,536 Europe 56,249 — — — 56,249 Mexico — 37,698 — — 37,698 Total revenues $ 1,198,177 $ 519,318 $ 293,944 $ (116,157) $ 1,895,282 Six months ended June 30, 2021 FMS SCS DTS Eliminations Total (In thousands) United States $ 2,461,234 $ 1,263,013 $ 675,218 $ (284,779) $ 4,114,686 Canada 147,262 114,823 — (12,636) 249,449 Europe 135,230 — — — 135,230 Mexico — 104,494 — — 104,494 Total revenues $ 2,743,726 $ 1,482,330 $ 675,218 $ (297,415) $ 4,603,859 Six months ended June 30, 2020 FMS SCS DTS Eliminations Total (In thousands) United States $ 2,278,969 $ 963,857 $ 628,832 $ (250,220) $ 3,621,438 Canada 131,245 93,840 — (8,203) 216,882 Europe 128,200 — — — 128,200 Mexico — 90,068 — — 90,068 Total revenues $ 2,538,414 $ 1,147,765 $ 628,832 $ (258,423) $ 4,056,588 Industry Our SCS business segment included revenue from the below industries: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Automotive $ 307,499 $ 147,749 $ 579,054 $ 397,674 Technology and healthcare 109,950 84,766 207,035 175,899 Consumer packaged goods and retail 286,262 236,499 559,486 466,431 Industrial and other 71,919 50,304 136,755 107,761 Total SCS revenues $ 775,630 $ 519,318 $ 1,482,330 $ 1,147,765 Lease & Related Maintenance and Rental Revenues The non-lease revenue from maintenance services related to our FMS business is recognized in "Lease & related maintenance and rental revenues" in the Condensed Consolidated Statements of Earnings. For the three months ended June 30, 2021 and 2020, we recognized $260 million and $238 million, respectively. For the six months ended June 30, 2021 and 2020, we recognized $510 million and $478 million, respectively. Deferred Revenue The following table includes the changes in deferred revenue due to the collection and deferral of cash or the satisfaction of our performance obligation under the contract: Six months ended June 30, 2021 2020 (In thousands) Balance as of beginning of period $ 629,739 $ 603,687 Recognized as revenue during period from beginning balance (109,558) (103,089) Consideration deferred during period, net 91,456 116,524 Foreign currency translation adjustment and other 1,499 (3,150) Balance as of end of period $ 613,136 $ 613,972 Contracted Not Recognized Revenue |
RECEIVABLES, NET
RECEIVABLES, NET | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
RECEIVABLES, NET | RECEIVABLES, NET June 30, 2021 December 31, 2020 (In thousands) Trade $ 1,160,076 $ 1,051,618 Sales-type leases 137,535 132,003 Other, primarily warranty and insurance 41,926 41,753 1,339,537 1,225,374 Allowance for credit losses and other (40,632) (43,024) Total $ 1,298,905 $ 1,182,350 The following table provides a reconciliation of our allowance for credit losses and other: Six months ended June 30, 2021 2020 (In thousands) Balance as of beginning of period $ 43,024 $ 22,761 Changes to provisions for credit losses (1,076) 32,600 Impact of adoption of new accounting standard, write-offs, and other (1,316) (10,453) Balance as of end of period $ 40,632 $ 44,908 |
REVENUE EARNING EQUIPMENT, NET
REVENUE EARNING EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2021 | |
Revenue Earning Equipment [Abstract] | |
REVENUE EARNING EQUIPMENT, NET | REVENUE EARNING EQUIPMENT, NET Estimated Useful Lives June 30, 2021 December 31, 2020 Cost Accumulated Net Cost Accumulated Net (In years) (In thousands) Held for use: Trucks 3 — 7 $ 5,195,420 $ (1,945,096) $ 3,250,324 $ 5,061,266 $ (1,818,594) $ 3,242,672 Tractors 4 — 7.5 7,247,325 (3,040,912) 4,206,413 7,013,595 (2,853,591) 4,160,004 Trailers and other 9.5 — 12 1,765,247 (768,590) 996,657 2,046,768 (804,006) 1,242,762 Held for sale 370,339 (292,634) 77,705 644,132 (512,555) 131,577 Total $ 14,578,331 $ (6,047,232) $ 8,531,099 $ 14,765,761 $ (5,988,746) $ 8,777,015 Policy and Accelerated Depreciation We periodically review and adjust, as appropriate, the estimated residual values and useful lives of existing revenue earning equipment for the purposes of recording depreciation expense. A reduction in estimated residual values or useful lives will result in an increase in depreciation expense over the remaining life of the vehicle. Our review of the estimated residual values and useful lives of revenue earning equipment is established with a long-term view, which we refer to as "policy depreciation." Our policy depreciation is based on a variety of factors, including vehicle class, generally subcategories of trucks, tractors and trailers, by weight, usage and other factors; historical, current, and internal and third-party expected future market prices; expected lives of vehicles; and expected sales of used vehicles in the wholesale and retail markets. Factors that could cause actual results to materially differ from estimates, include changes in technology; changes in supply and demand; competitor pricing; regulatory requirements; driver shortages, requirements and preferences; and 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. We also assess estimates of residual values of vehicles expected to be made available for sale in the near-term (generally 12 to 24 months) based on near-term market rates and conditions and may adjust estimates of residual values for these vehicles, which we refer to as "accelerated depreciation." During the second quarter of 2021, we completed a review of the residual values and useful lives of revenue earning equipment. Based on the results of our analysis, we primarily adjusted our residual value estimates for certain tractors and useful lives of certain classes of our revenue earning equipment, which impacted approximately 15% of our total fleet. The increase in depreciation expense in the second quarter of 2021 was not material to our results of operations. The following table provides a summary of amounts that have been recorded for accelerated and policy depreciation related to our residual value and useful life estimate changes since 2019, as well as used vehicle sales results (rounded to the closest million): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Accelerated depreciation $ 12,000 $ 77,000 $ 42,000 $ 156,000 Policy depreciation 63,000 68,000 121,000 119,000 Used vehicle sales, net (52,000) 9,000 (80,000) 30,000 Used Vehicle Sales and Valuation Adjustments 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, which we refer to as "valuation adjustments," are recognized at the time they are deemed to meet the held for sale criteria and are presented within “Used vehicle sales, net” in the Condensed Consolidated Statements of Earnings. For revenue earning equipment held for sale, we stratify our fleet by vehicle type (trucks, tractors and trailers), weight class, age and other relevant characteristics and create classes of similar assets for analysis purposes. For revenue earning equipment held for sale, fair value was determined based upon recent market prices obtained from our own sales experience for each class of similar assets and vehicle condition. In addition, we also consider expected declines in market prices when valuing the vehicles held for sale, as well as the forecasted sales channel mix (retail/wholesale). 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: Valuation Adjustments Three months ended June 30, Six months ended June 30, June 30, 2021 December 31, 2020 (2) 2021 2020 2021 2020 (In thousands) Revenue earning equipment held for sale (1) : Trucks $ 2,209 $ 3,848 $ 684 $ 5,389 $ 1,574 $ 16,451 Tractors 1,383 2,211 575 3,035 659 11,488 Trailers and other 2,176 4,092 1,828 2,592 3,875 4,585 Total assets at fair value $ 5,768 $ 10,151 $ 3,087 $ 11,016 $ 6,108 $ 32,524 ———————————— (1) Revenue earning equipment held for sale in the table above only includes the portion where net book values exceeded fair values and valuation adjustments were recorded. The net book value of assets held for sale that were less than fair value was $72 million and $121 million as of June 30, 2021 and December 31, 2020, respectively. (2) Adjusted the presentation of the vehicles held for sale that were recorded to fair value to now exclude vehicles that previously recognized accumulated accelerated depreciation. The components of used vehicle sales, net were as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Gains on vehicle sales, net $ (54,721) $ (1,528) $ (86,593) $ (2,352) Losses from valuation adjustments 3,087 11,016 6,108 32,524 Used vehicle sales, net $ (51,634) $ 9,488 $ (80,485) $ 30,172 |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ACCRUED EXPENSES AND OTHER LIABILITIES June 30, 2021 December 31, 2020 Accrued Non-Current Total Accrued Non-Current Total (In thousands) Salaries and wages $ 167,568 $ — $ 167,568 $ 158,122 $ — $ 158,122 Deferred compensation 5,613 84,975 90,588 5,117 77,823 82,940 Pension benefits 3,787 258,341 262,128 3,776 265,178 268,954 Other postretirement benefits 1,386 17,490 18,876 1,381 20,245 21,626 Other employee benefits 13,755 — 13,755 20,599 — 20,599 Insurance obligations (1) 174,582 300,086 474,668 169,936 292,298 462,234 Operating taxes (2) 174,058 41,683 215,741 164,293 41,687 205,980 Income taxes 3,133 16,326 19,459 4,588 15,598 20,186 Interest 38,129 — 38,129 38,887 — 38,887 Deposits, mainly from customers 90,349 3,014 93,363 79,840 3,014 82,854 Operating lease liabilities 80,657 172,377 253,034 78,785 186,429 265,214 Deferred revenue (3) 187,467 425,669 613,136 183,474 446,265 629,739 Restructuring liabilities 3,293 — 3,293 7,683 — 7,683 Other 77,055 51,092 128,147 72,697 55,324 128,021 Total $ 1,020,832 $ 1,371,053 $ 2,391,885 $ 989,178 $ 1,403,861 $ 2,393,039 ———————————— (1) Insurance obligations are primarily comprised of self-insured claim liabilities. (2) Operating taxes included the deferral of certain payroll taxes in current and non-current liabilities allowed under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESEffective Tax RateOur effective income tax rate from continuing operations for the second quarter of 2021 was an expense of 26.5% as compared to a benefit of 22.2% in the second quarter of 2020 and an expense of 26.5% in the six months ended June 30, 2021 as compared to a benefit of 12.3% in the six months ended June 30, 2020. For the three and six months ended June 30, 2020, the tax rate was impacted by a reduction in earnings due to accelerated depreciation charges and additional negative economic impacts caused by the COVID-19 effects. For the six months ended June 30, 2020, the tax rate was also impacted by the recognition of a valuation allowance of $13 million related to our U.K. deferred tax assets and a charge of $7 million related to expiring state net operating losses. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The components of lease income were as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Operating leases Lease income related to ChoiceLease $ 386,650 $ 385,639 $ 776,261 $ 785,227 Lease income related to commercial rental (1) 255,098 161,220 465,382 356,915 Sales-type leases Interest income related to net investment in leases $ 11,040 $ 12,080 $ 25,455 $ 23,724 Variable lease income excluding commercial rental (1) $ 72,129 $ 58,882 $ 144,122 $ 124,389 ———————————— (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, which are included in "Receivables, net" and "Sales-type leases and other assets" in the Condensed Consolidated Balance Sheets, were as follows: June 30, 2021 December 31, 2020 (In thousands) Net investment in the lease — lease payment receivable $ 589,935 $ 589,120 Net investment in the lease — unguaranteed residual value in assets 46,034 44,704 635,969 633,824 Estimated loss allowance (4,066) (4,025) Total $ 631,903 $ 629,799 |
LEASES | LEASES The components of lease income were as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Operating leases Lease income related to ChoiceLease $ 386,650 $ 385,639 $ 776,261 $ 785,227 Lease income related to commercial rental (1) 255,098 161,220 465,382 356,915 Sales-type leases Interest income related to net investment in leases $ 11,040 $ 12,080 $ 25,455 $ 23,724 Variable lease income excluding commercial rental (1) $ 72,129 $ 58,882 $ 144,122 $ 124,389 ———————————— (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, which are included in "Receivables, net" and "Sales-type leases and other assets" in the Condensed Consolidated Balance Sheets, were as follows: June 30, 2021 December 31, 2020 (In thousands) Net investment in the lease — lease payment receivable $ 589,935 $ 589,120 Net investment in the lease — unguaranteed residual value in assets 46,034 44,704 635,969 633,824 Estimated loss allowance (4,066) (4,025) Total $ 631,903 $ 629,799 |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Weighted Average Interest Rate June 30, 2021 Maturities June 30, December 31, (In thousands) Debt: U.S. commercial paper 0.19% 2023 $ 55,522 $ 214,375 Canadian commercial paper 0.30% 2023 25,004 62,800 Trade receivables program —% 2022 — — Global revolving credit facility —% 2023 — 200 Unsecured U.S. obligations 3.47% 2024 200,000 200,000 Unsecured U.S. notes — Medium-term notes (1) 3.41% 2021-2026 5,152,922 5,174,180 Unsecured foreign obligations 1.87% 2022-2024 167,182 254,259 Asset-backed U.S. obligations (2) 2.56% 2021-2026 611,275 682,383 Finance lease obligations and other 2021-2073 45,762 48,418 6,257,667 6,636,615 Debt issuance costs and original issue discounts (21,996) (26,379) Total debt 6,235,671 6,610,236 Short-term debt and current portion of long-term debt (1,362,669) (516,581) Long-term debt $ 4,873,002 $ 6,093,655 ———————————— (1) Included the impact from the fair market values of hedging instruments on our notes, which were not material as of June 30, 2021 and December 31, 2020. The notional amount of interest rate swaps designated as fair value hedges was $150 million as of June 30, 2021 and December 31, 2020. (2) Asset-backed U.S. obligations are related to financing transactions backed by a portion of our revenue earning equipment. The fair value of total debt (excluding finance lease and asset-backed U.S. obligations) was approximately $5.9 billion and $6.3 billion as of June 30, 2021 and December 31, 2020, 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. As of June 30, 2021, there was $1.3 billion available under the global 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%. As of June 30, 2021, the ratio was 177%. We had letters of credit and surety bonds outstanding of $458 million and $519 million as of June 30, 2021 and December 31, 2020, respectively, which primarily guarantee the payment of insurance claims. In April 2021, we extended the maturity of the trade receivables program to April 2022. As of June 30, 2021, the available proceeds under the program were $300 million. In August 2021, we will early redeem a $300 million aggregate principal amount outstanding of our 3.450% Medium Term Notes due November 15, 2021. The impact of this redemption is not expected to be material to our results of operations. |
SHARE REPURCHASE PROGRAMS
SHARE REPURCHASE PROGRAMS | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
SHARE REPURCHASE PROGRAMS | SHARE REPURCHASE PROGRAMS In December 2019, our Board of Directors authorized a share repurchase program intended to mitigate the dilutive impact of shares issued under our employee stock plans (the 2019 program). Under the 2019 program, we are 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 our employee stock plans from December 1, 2019 to December 11, 2021. Share repurchases of common stock are made periodically in open-market transactions and are subject to market conditions, legal requirements, and other factors. We may establish prearranged written plans under Rule 10b5-1 of the Securities Exchange Act of 1934 as part of the program, which allow for share repurchases during our quarterly blackout periods as set forth in the trading plan.During the six months ended June 30, 2021 and June 30, 2020, we repurchased approximately 638,001 shares for $49 million and 303,098 shares for $12 million, respectively. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Comprehensive income (loss) presents a measure of all changes in shareholders’ equity except for changes resulting from transactions with shareholders in their capacity as shareholders. The following summary sets forth the components of accumulated other comprehensive loss, net of tax: Six months ended June 30, 2021 2020 (In thousands) Cumulative translation adjustments $ (132,115) $ (228,121) Net actuarial loss and prior service cost (644,008) (658,866) Unrealized gain (loss) from cash flow hedges (11,559) (17,653) Accumulated other comprehensive loss $ (787,682) $ (904,640) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table presents the calculation of basic and diluted earnings per common share from continuing operations: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands, except per share amounts) Earnings (loss) from continuing operations $ 149,568 $ (73,705) $ 201,152 $ (182,834) Less: Distributed and undistributed earnings allocated to unvested stock (703) (130) (940) (248) Earnings (loss) from continuing operations available to common shareholders $ 148,865 $ (73,835) $ 200,212 $ (183,082) Weighted average common shares outstanding — Basic 52,378 52,355 52,333 52,320 Effect of dilutive equity awards 1,213 — 1,039 — Weighted average common shares outstanding — Diluted 53,591 52,355 53,372 52,320 Earnings (loss) from continuing operations per common share — Basic $ 2.84 $ (1.41) $ 3.83 $ (3.50) Earnings (loss) from continuing operations per common share — Diluted $ 2.78 $ (1.41) $ 3.75 $ (3.50) Anti-dilutive equity awards not included in diluted EPS 417 3,612 958 3,498 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS The following table provides information on share-based compensation expense and income tax benefit recognized: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Stock option and stock purchase plans $ 636 $ 1,052 $ 1,637 $ 2,409 Unvested stock awards 11,981 6,487 21,657 8,221 Share-based compensation expense 12,617 7,539 23,294 10,630 Income tax benefit (1,981) (1,307) (3,513) (1,485) Share-based compensation expense, net of tax $ 10,636 $ 6,232 $ 19,781 $ 9,145 Total unrecognized pre-tax compensation expense related to all share-based compensation arrangements at June 30, 2021 was $64 million and is expected to be recognized over a weighted-average period of 2.1 years. We generally grant share-based awards in the first quarter of each year during our annual equity award process. The following table is a summary of the awards granted in the annual equity award process in the first quarter of 2021: Shares Granted Weighted-Average (Shares in thousands) Time-vested restricted stock rights 391 $ 64.89 Performance-based restricted stock rights 119 67.11 Total 510 $ 65.41 Restricted stock awards are unvested stock rights granted to employees that entitle the holder to shares of common stock as the award vests. Time-vested restricted stock rights typically vest ratably over three years regardless of company performance. The fair value of the time-vested awards is determined and fixed based on Ryder’s stock price on the date of grant. Performance-based restricted stock rights (PBRSRs) are generally granted to executive management and include a performance-based vesting condition. PBRSRs are awarded based on various revenue, return-based and cash flow performance targets and may include a total shareholder return (TSR) modifier for certain members of management. The fair values of PBRSRs that include a TSR modifier are estimated using a lattice-based option-pricing valuation model that incorporates a Monte-Carlo simulation. The fair value of PBRSRs that do not include a TSR modifier is determined and fixed on the grant date based on our stock price on the date of grant. Share-based compensation expense for PBRSRs is recognized on a straight-line basis over the vesting period, based upon the probability that the performance target will be met. PBRSRs awarded in the first quarter of 2021 contained vesting conditions based on return on equity, strategic revenue growth and free cash flow. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Components of net pension expense were as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Company-administered plans: Service cost $ 180 $ 2,741 $ 548 $ 5,954 Interest cost 14,483 17,353 29,018 34,885 Expected return on plan assets (21,791) (23,948) (43,485) (48,211) Amortization of net actuarial loss and prior service cost 7,031 7,622 14,128 15,524 (97) 3,768 209 8,152 Multi-employer plans 2,539 2,798 5,180 5,577 Net pension expense $ 2,442 $ 6,566 $ 5,389 $ 13,729 Company-administered plans: U.S. $ 2,090 $ 6,055 $ 4,453 $ 12,833 Non-U.S. (2,187) (2,287) (4,244) (4,681) (97) 3,768 209 8,152 Multi-employer plans 2,539 2,798 5,180 5,577 Net pension expense $ 2,442 $ 6,566 $ 5,389 $ 13,729 |
OTHER ITEMS IMPACTING COMPARABI
OTHER ITEMS IMPACTING COMPARABILITY | 6 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
OTHER ITEMS IMPACTING COMPARABILITY | OTHER ITEMS IMPACTING COMPARABILITY Our primary measure of segment performance as shown in Note 18, "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 June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Restructuring and other, net $ 2,577 $ 26,168 $ 5,605 $ 46,789 ERP implementation costs 5,090 11,032 12,721 21,358 Restructuring and other items, net 7,667 37,200 18,326 68,147 Gains on sale of properties (35,263) — (36,768) — ChoiceLease liability insurance revenue (1) — (7,409) (777) (16,767) Other items impacting comparability, net $ (27,596) $ 29,792 $ (19,219) $ 51,381 ———————————— (1) Refer to Note 18, "Segment Reporting," for additional information. Note: Amounts may not be additive due to rounding. During the six months ended June 30, 2021 and 2020, other items impacting comparability included: • Restructuring and other, net — For the three and six months ended June 30, 2021 , this item primarily included professional fees related to the pursuit of a discrete commercial claim. For the three and six months ended June 30, 2020, this item primarily included expenses of $9 million and $24 million, respecti vely, related to our ChoiceLease liability insurance program which was discontinued in January 2020 and exited in the first quarter of 2021. The prior year, also included severance costs of $13 million for planned actions to reduce headcount primarily in our North American and U.K. FMS operations. • ERP implementation costs — This item includes costs associated with the implementation of an Enterprise Resource Planning (ERP) system. In July 2020, we went live with the first module of our ERP system for human resources. In April 2021, we went live with the financial module to replace existing core financial systems. • Gains of sale of properties |
CONTINGENCIES AND OTHER MATTERS
CONTINGENCIES AND OTHER MATTERS | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES AND OTHER MATTERS | CONTINGENCIES AND OTHER MATTERS We are a party to various claims, complaints and proceedings arising in the ordinary course of our continuing business operations including 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 Condensed Consolidated Financial Statements. Our estimates regarding potential losses and materiality are based on our judgment and assessment of the claims utilizing currently available information. Although we will continue to reassess our reserves and estimates based on future developments, our objective assessment of the legal merits of such claims may not always be predictive of the outcome and actual results may vary from our current estimates. Securities Litigation Relating to Residual Value Estimates On May 20, 2020, a putative class action on behalf of purchasers of our securities who purchased or otherwise acquired their securities between July 23, 2015 and February 13, 2020, inclusive (Class Period), was commenced against Ryder and certain of our current and former officers in the U.S. District Court for the Southern District of Florida, captioned Key West Policy & Fire Pension Fund v. Ryder System, Inc., et al. The complaint alleges, among other things, that the defendants misrepresented Ryder’s depreciation policy and residual value estimates for its vehicles during the Class Period in violation of Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and seeks to recover, among other things, unspecified compensatory damages and attorneys' fees and costs. On August 3, 2020, the State of Alaska, Alaska Permanent Fund, the City of Fort Lauderdale General Employees’ Retirement System, and the City of Plantation Police Officers Pension Fund were appointed lead plaintiffs. On October 5, 2020, the lead plaintiffs filed an amended complaint. On December 4, 2020, Ryder and the other named defendants in the case filed a Motion to Dismiss the amended complaint. On April 7, 2021, the court held a hearing on defendants’ Motion to Dismiss, and reserved decision. On June 26, 2020, August 6, 2020, and February 2, 2021, three shareholder derivative complaints purportedly on behalf of Ryder were filed in the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida, against us as nominal defendant and certain of our current and former officers and our current directors. The complaints allege breach of fiduciary duties, unjust enrichment, and waste of corporate assets. The complaints are based on the allegation set forth in the securities class action complaint. The plaintiffs, on our behalf, are seeking an award of monetary damages and restitution to us, improvements in our corporate governance and internal procedures, and legal fees. These derivative cases have all been consolidated and stayed (stopped) until the Motion to Dismiss in the securities class action described above is resolved. Also, on January 19, 2021 (as amended on March 26, 2021), and February 8, 2021, two shareholder derivative complaints purportedly on behalf of Ryder were filed in U.S. District Court for the Southern District of Florida against us as nominal defendant and certain of our current and former officers and directors. The complaints allege breach of fiduciary duties, unjust enrichment, and waste of corporate assets. Both complaints are based on the allegation set forth in the securities class action complaint, seek similar relief on our behalf to that sought in the derivative complaints that were filed in Florida state court, and have been stayed (stopped) until the Motion to Dismiss in the securities class action is resolved. We believe the claims asserted in the complaints are without merit and intend to defend against them vigorously. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Six months ended June 30, 2021 2020 (In thousands) Interest paid $ 104,417 $ 123,258 Income taxes paid 15,812 4,997 Right-of-use assets obtained in exchange for lease obligations: Finance leases $ 5,622 $ 5,511 Operating leases 30,274 52,640 Capital expenditures acquired but not yet paid $ 167,587 $ 75,576 |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Our primary measurement of segment financial performance, defined as segment “Earnings (loss) from continuing operations before taxes” (EBT), includes an allocation of Central Support Services (CSS) and excludes non-operating pension costs, net and certain other items as discussed in Note 15, “Other Items Impacting Comparability.” 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 table sets forth financial information for each of our segments and provides a reconciliation between segment EBT and earnings (loss) from continuing operations before income taxes: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Revenue: Fleet Management Solutions: ChoiceLease $ 802,832 $ 766,161 $ 1,599,920 $ 1,558,367 SelectCare 136,503 125,851 267,171 261,997 Commercial rental 266,969 169,171 489,978 374,937 Other 18,369 12,332 35,717 35,758 Fuel services revenue 183,568 117,253 350,163 290,588 ChoiceLease liability insurance revenue (1) — 7,409 777 16,767 Fleet Management Solutions 1,408,241 1,198,177 2,743,726 2,538,414 Supply Chain Solutions 775,630 519,318 1,482,330 1,147,765 Dedicated Transportation Solutions 354,711 293,944 675,218 628,832 Eliminations (2) (156,345) (116,157) (297,415) (258,423) Total revenue $ 2,382,237 $ 1,895,282 $ 4,603,859 $ 4,056,588 Earnings (loss) from continuing operations before taxes: Fleet Management Solutions $ 158,451 $ (103,735) $ 221,853 $ (218,309) Supply Chain Solutions 41,041 36,916 73,998 67,941 Dedicated Transportation Solutions 13,162 21,233 26,144 33,413 Eliminations (19,186) (7,745) (31,460) (17,814) 193,468 (53,331) 290,535 (134,769) Unallocated Central Support Services (17,864) (10,718) (36,296) (20,104) Non-operating pension costs, net (3) 373 (936) 382 (2,157) Other items impacting comparability, net (4) 27,596 (29,792) 19,219 (51,381) Earnings (loss) from continuing operations before income taxes $ 203,573 $ (94,777) $ 273,840 $ (208,411) ———————————— (1) In the first quarter of 2020, we announced our plan to exit the extension of our liability insurance coverage for ChoiceLease customers. The exit of this program was completed in the first quarter of 2021. (2) Represents the elimination of intercompany revenues in our FMS business segment. (3) Refer to Note 14, "Employee Benefit Plans," for a discussion on this item. (4) Refer to Note 15, “Other Items Impacting Comparability,” for a discussion of items excluded from our primary measure of segment performance. The following table sets forth the capital expenditures paid for each of our segments: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Fleet Management Solutions $ 503,874 $ 256,216 $ 871,582 $ 679,332 Supply Chain Solutions 14,450 13,868 22,980 19,874 Dedicated Transportation Solutions 256 339 562 763 Central Support Services 4,768 3,547 9,275 4,961 Purchases of property and revenue earning equipment $ 523,348 $ 273,970 $ 904,399 $ 704,930 |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Reference Rate Reform In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848). This update provides optional expedients for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another rate expected to be discontinued at the end of 2021 because of reference rate reform. The update is effective for all transactions between March 12, 2020 through December 31, 2022. We continuously evaluate the impact on our consolidated financial position, results of operations, and cash flows. Leases |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue From External Customers by Geographic Areas | The following tables disaggregate our revenue recognized by primary geographical market by our reportable business segments and by industry for SCS. Refer to Note 18, "Segment Reporting," for the disaggregation of our revenue by major products/service lines. Primary Geographical Markets Three months ended June 30, 2021 FMS SCS DTS Eliminations Total (In thousands) United States $ 1,263,250 $ 661,715 $ 354,711 $ (148,052) $ 2,131,624 Canada 76,849 58,735 — (8,293) 127,291 Europe 68,142 — — — 68,142 Mexico — 55,180 — — 55,180 Total revenues $ 1,408,241 $ 775,630 $ 354,711 $ (156,345) $ 2,382,237 Three months ended June 30, 2020 FMS SCS DTS Eliminations Total (In thousands) United States $ 1,081,448 $ 441,332 $ 293,944 $ (112,925) $ 1,703,799 Canada 60,480 40,288 — (3,232) 97,536 Europe 56,249 — — — 56,249 Mexico — 37,698 — — 37,698 Total revenues $ 1,198,177 $ 519,318 $ 293,944 $ (116,157) $ 1,895,282 Six months ended June 30, 2021 FMS SCS DTS Eliminations Total (In thousands) United States $ 2,461,234 $ 1,263,013 $ 675,218 $ (284,779) $ 4,114,686 Canada 147,262 114,823 — (12,636) 249,449 Europe 135,230 — — — 135,230 Mexico — 104,494 — — 104,494 Total revenues $ 2,743,726 $ 1,482,330 $ 675,218 $ (297,415) $ 4,603,859 Six months ended June 30, 2020 FMS SCS DTS Eliminations Total (In thousands) United States $ 2,278,969 $ 963,857 $ 628,832 $ (250,220) $ 3,621,438 Canada 131,245 93,840 — (8,203) 216,882 Europe 128,200 — — — 128,200 Mexico — 90,068 — — 90,068 Total revenues $ 2,538,414 $ 1,147,765 $ 628,832 $ (258,423) $ 4,056,588 |
Schedule of Disaggregation of Revenue | Our SCS business segment included revenue from the below industries: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Automotive $ 307,499 $ 147,749 $ 579,054 $ 397,674 Technology and healthcare 109,950 84,766 207,035 175,899 Consumer packaged goods and retail 286,262 236,499 559,486 466,431 Industrial and other 71,919 50,304 136,755 107,761 Total SCS revenues $ 775,630 $ 519,318 $ 1,482,330 $ 1,147,765 |
Schedule of Changes in Contract Liability | The following table includes the changes in deferred revenue due to the collection and deferral of cash or the satisfaction of our performance obligation under the contract: Six months ended June 30, 2021 2020 (In thousands) Balance as of beginning of period $ 629,739 $ 603,687 Recognized as revenue during period from beginning balance (109,558) (103,089) Consideration deferred during period, net 91,456 116,524 Foreign currency translation adjustment and other 1,499 (3,150) Balance as of end of period $ 613,136 $ 613,972 |
RECEIVABLES, NET (Tables)
RECEIVABLES, NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Receivables, Net | June 30, 2021 December 31, 2020 (In thousands) Trade $ 1,160,076 $ 1,051,618 Sales-type leases 137,535 132,003 Other, primarily warranty and insurance 41,926 41,753 1,339,537 1,225,374 Allowance for credit losses and other (40,632) (43,024) Total $ 1,298,905 $ 1,182,350 |
Schedule of Allowance for Credit Loss | The following table provides a reconciliation of our allowance for credit losses and other: Six months ended June 30, 2021 2020 (In thousands) Balance as of beginning of period $ 43,024 $ 22,761 Changes to provisions for credit losses (1,076) 32,600 Impact of adoption of new accounting standard, write-offs, and other (1,316) (10,453) Balance as of end of period $ 40,632 $ 44,908 |
REVENUE EARNING EQUIPMENT, NET
REVENUE EARNING EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue Earning Equipment [Abstract] | |
Schedule of Revenue Earning Equipment | Estimated Useful Lives June 30, 2021 December 31, 2020 Cost Accumulated Net Cost Accumulated Net (In years) (In thousands) Held for use: Trucks 3 — 7 $ 5,195,420 $ (1,945,096) $ 3,250,324 $ 5,061,266 $ (1,818,594) $ 3,242,672 Tractors 4 — 7.5 7,247,325 (3,040,912) 4,206,413 7,013,595 (2,853,591) 4,160,004 Trailers and other 9.5 — 12 1,765,247 (768,590) 996,657 2,046,768 (804,006) 1,242,762 Held for sale 370,339 (292,634) 77,705 644,132 (512,555) 131,577 Total $ 14,578,331 $ (6,047,232) $ 8,531,099 $ 14,765,761 $ (5,988,746) $ 8,777,015 |
Summary of Amounts that have been Recorded for Accelerated and Policy Depreciation related to our Residual Value Estimate Changes | The following table provides a summary of amounts that have been recorded for accelerated and policy depreciation related to our residual value and useful life estimate changes since 2019, as well as used vehicle sales results (rounded to the closest million): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Accelerated depreciation $ 12,000 $ 77,000 $ 42,000 $ 156,000 Policy depreciation 63,000 68,000 121,000 119,000 Used vehicle sales, net (52,000) 9,000 (80,000) 30,000 |
Schedule of 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: Valuation Adjustments Three months ended June 30, Six months ended June 30, June 30, 2021 December 31, 2020 (2) 2021 2020 2021 2020 (In thousands) Revenue earning equipment held for sale (1) : Trucks $ 2,209 $ 3,848 $ 684 $ 5,389 $ 1,574 $ 16,451 Tractors 1,383 2,211 575 3,035 659 11,488 Trailers and other 2,176 4,092 1,828 2,592 3,875 4,585 Total assets at fair value $ 5,768 $ 10,151 $ 3,087 $ 11,016 $ 6,108 $ 32,524 ———————————— (1) Revenue earning equipment held for sale in the table above only includes the portion where net book values exceeded fair values and valuation adjustments were recorded. The net book value of assets held for sale that were less than fair value was $72 million and $121 million as of June 30, 2021 and December 31, 2020, respectively. (2) Adjusted the presentation of the vehicles held for sale that were recorded to fair value to now exclude vehicles that previously recognized accumulated accelerated depreciation. |
Schedule of Gain and Losses Revenue Earning Equipment | The components of used vehicle sales, net were as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Gains on vehicle sales, net $ (54,721) $ (1,528) $ (86,593) $ (2,352) Losses from valuation adjustments 3,087 11,016 6,108 32,524 Used vehicle sales, net $ (51,634) $ 9,488 $ (80,485) $ 30,172 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | June 30, 2021 December 31, 2020 Accrued Non-Current Total Accrued Non-Current Total (In thousands) Salaries and wages $ 167,568 $ — $ 167,568 $ 158,122 $ — $ 158,122 Deferred compensation 5,613 84,975 90,588 5,117 77,823 82,940 Pension benefits 3,787 258,341 262,128 3,776 265,178 268,954 Other postretirement benefits 1,386 17,490 18,876 1,381 20,245 21,626 Other employee benefits 13,755 — 13,755 20,599 — 20,599 Insurance obligations (1) 174,582 300,086 474,668 169,936 292,298 462,234 Operating taxes (2) 174,058 41,683 215,741 164,293 41,687 205,980 Income taxes 3,133 16,326 19,459 4,588 15,598 20,186 Interest 38,129 — 38,129 38,887 — 38,887 Deposits, mainly from customers 90,349 3,014 93,363 79,840 3,014 82,854 Operating lease liabilities 80,657 172,377 253,034 78,785 186,429 265,214 Deferred revenue (3) 187,467 425,669 613,136 183,474 446,265 629,739 Restructuring liabilities 3,293 — 3,293 7,683 — 7,683 Other 77,055 51,092 128,147 72,697 55,324 128,021 Total $ 1,020,832 $ 1,371,053 $ 2,391,885 $ 989,178 $ 1,403,861 $ 2,393,039 ———————————— (1) Insurance obligations are primarily comprised of self-insured claim liabilities. (2) Operating taxes included the deferral of certain payroll taxes in current and non-current liabilities allowed under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Lease Income - Operating | The components of lease income were as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Operating leases Lease income related to ChoiceLease $ 386,650 $ 385,639 $ 776,261 $ 785,227 Lease income related to commercial rental (1) 255,098 161,220 465,382 356,915 Sales-type leases Interest income related to net investment in leases $ 11,040 $ 12,080 $ 25,455 $ 23,724 Variable lease income excluding commercial rental (1) $ 72,129 $ 58,882 $ 144,122 $ 124,389 ———————————— (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, which are included in "Receivables, net" and "Sales-type leases and other assets" in the Condensed Consolidated Balance Sheets, were as follows: June 30, 2021 December 31, 2020 (In thousands) Net investment in the lease — lease payment receivable $ 589,935 $ 589,120 Net investment in the lease — unguaranteed residual value in assets 46,034 44,704 635,969 633,824 Estimated loss allowance (4,066) (4,025) Total $ 631,903 $ 629,799 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Weighted Average Interest Rate June 30, 2021 Maturities June 30, December 31, (In thousands) Debt: U.S. commercial paper 0.19% 2023 $ 55,522 $ 214,375 Canadian commercial paper 0.30% 2023 25,004 62,800 Trade receivables program —% 2022 — — Global revolving credit facility —% 2023 — 200 Unsecured U.S. obligations 3.47% 2024 200,000 200,000 Unsecured U.S. notes — Medium-term notes (1) 3.41% 2021-2026 5,152,922 5,174,180 Unsecured foreign obligations 1.87% 2022-2024 167,182 254,259 Asset-backed U.S. obligations (2) 2.56% 2021-2026 611,275 682,383 Finance lease obligations and other 2021-2073 45,762 48,418 6,257,667 6,636,615 Debt issuance costs and original issue discounts (21,996) (26,379) Total debt 6,235,671 6,610,236 Short-term debt and current portion of long-term debt (1,362,669) (516,581) Long-term debt $ 4,873,002 $ 6,093,655 ———————————— (1) Included the impact from the fair market values of hedging instruments on our notes, which were not material as of June 30, 2021 and December 31, 2020. The notional amount of interest rate swaps designated as fair value hedges was $150 million as of June 30, 2021 and December 31, 2020. (2) 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) | 6 Months Ended |
Jun. 30, 2021 | |
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: Six months ended June 30, 2021 2020 (In thousands) Cumulative translation adjustments $ (132,115) $ (228,121) Net actuarial loss and prior service cost (644,008) (658,866) Unrealized gain (loss) from cash flow hedges (11,559) (17,653) Accumulated other comprehensive loss $ (787,682) $ (904,640) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Common Share From Continuing Operations | The following table presents the calculation of basic and diluted earnings per common share from continuing operations: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands, except per share amounts) Earnings (loss) from continuing operations $ 149,568 $ (73,705) $ 201,152 $ (182,834) Less: Distributed and undistributed earnings allocated to unvested stock (703) (130) (940) (248) Earnings (loss) from continuing operations available to common shareholders $ 148,865 $ (73,835) $ 200,212 $ (183,082) Weighted average common shares outstanding — Basic 52,378 52,355 52,333 52,320 Effect of dilutive equity awards 1,213 — 1,039 — Weighted average common shares outstanding — Diluted 53,591 52,355 53,372 52,320 Earnings (loss) from continuing operations per common share — Basic $ 2.84 $ (1.41) $ 3.83 $ (3.50) Earnings (loss) from continuing operations per common share — Diluted $ 2.78 $ (1.41) $ 3.75 $ (3.50) Anti-dilutive equity awards not included in diluted EPS 417 3,612 958 3,498 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of 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 benefit recognized: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Stock option and stock purchase plans $ 636 $ 1,052 $ 1,637 $ 2,409 Unvested stock awards 11,981 6,487 21,657 8,221 Share-based compensation expense 12,617 7,539 23,294 10,630 Income tax benefit (1,981) (1,307) (3,513) (1,485) Share-based compensation expense, net of tax $ 10,636 $ 6,232 $ 19,781 $ 9,145 |
Schedule of Share-based Compensation, Activity | The following table is a summary of the awards granted in the annual equity award process in the first quarter of 2021: Shares Granted Weighted-Average (Shares in thousands) Time-vested restricted stock rights 391 $ 64.89 Performance-based restricted stock rights 119 67.11 Total 510 $ 65.41 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | Components of net pension expense were as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Company-administered plans: Service cost $ 180 $ 2,741 $ 548 $ 5,954 Interest cost 14,483 17,353 29,018 34,885 Expected return on plan assets (21,791) (23,948) (43,485) (48,211) Amortization of net actuarial loss and prior service cost 7,031 7,622 14,128 15,524 (97) 3,768 209 8,152 Multi-employer plans 2,539 2,798 5,180 5,577 Net pension expense $ 2,442 $ 6,566 $ 5,389 $ 13,729 Company-administered plans: U.S. $ 2,090 $ 6,055 $ 4,453 $ 12,833 Non-U.S. (2,187) (2,287) (4,244) (4,681) (97) 3,768 209 8,152 Multi-employer plans 2,539 2,798 5,180 5,577 Net pension expense $ 2,442 $ 6,566 $ 5,389 $ 13,729 |
OTHER ITEMS IMPACTING COMPARA_2
OTHER ITEMS IMPACTING COMPARABILITY (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Items Impacting Comparability | Excluding these items from our segment measure of performance allows for better year over year comparison: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Restructuring and other, net $ 2,577 $ 26,168 $ 5,605 $ 46,789 ERP implementation costs 5,090 11,032 12,721 21,358 Restructuring and other items, net 7,667 37,200 18,326 68,147 Gains on sale of properties (35,263) — (36,768) — ChoiceLease liability insurance revenue (1) — (7,409) (777) (16,767) Other items impacting comparability, net $ (27,596) $ 29,792 $ (19,219) $ 51,381 ———————————— (1) Refer to Note 18, "Segment Reporting," for additional information. Note: Amounts may not be additive due to rounding. |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Six months ended June 30, 2021 2020 (In thousands) Interest paid $ 104,417 $ 123,258 Income taxes paid 15,812 4,997 Right-of-use assets obtained in exchange for lease obligations: Finance leases $ 5,622 $ 5,511 Operating leases 30,274 52,640 Capital expenditures acquired but not yet paid $ 167,587 $ 75,576 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information of Business Segments | The following table sets forth financial information for each of our segments and provides a reconciliation between segment EBT and earnings (loss) from continuing operations before income taxes: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Revenue: Fleet Management Solutions: ChoiceLease $ 802,832 $ 766,161 $ 1,599,920 $ 1,558,367 SelectCare 136,503 125,851 267,171 261,997 Commercial rental 266,969 169,171 489,978 374,937 Other 18,369 12,332 35,717 35,758 Fuel services revenue 183,568 117,253 350,163 290,588 ChoiceLease liability insurance revenue (1) — 7,409 777 16,767 Fleet Management Solutions 1,408,241 1,198,177 2,743,726 2,538,414 Supply Chain Solutions 775,630 519,318 1,482,330 1,147,765 Dedicated Transportation Solutions 354,711 293,944 675,218 628,832 Eliminations (2) (156,345) (116,157) (297,415) (258,423) Total revenue $ 2,382,237 $ 1,895,282 $ 4,603,859 $ 4,056,588 Earnings (loss) from continuing operations before taxes: Fleet Management Solutions $ 158,451 $ (103,735) $ 221,853 $ (218,309) Supply Chain Solutions 41,041 36,916 73,998 67,941 Dedicated Transportation Solutions 13,162 21,233 26,144 33,413 Eliminations (19,186) (7,745) (31,460) (17,814) 193,468 (53,331) 290,535 (134,769) Unallocated Central Support Services (17,864) (10,718) (36,296) (20,104) Non-operating pension costs, net (3) 373 (936) 382 (2,157) Other items impacting comparability, net (4) 27,596 (29,792) 19,219 (51,381) Earnings (loss) from continuing operations before income taxes $ 203,573 $ (94,777) $ 273,840 $ (208,411) ———————————— (1) In the first quarter of 2020, we announced our plan to exit the extension of our liability insurance coverage for ChoiceLease customers. The exit of this program was completed in the first quarter of 2021. (2) Represents the elimination of intercompany revenues in our FMS business segment. (3) Refer to Note 14, "Employee Benefit Plans," for a discussion on this item. (4) Refer to Note 15, “Other Items Impacting Comparability,” for a discussion of items excluded from our primary measure of segment performance. The following table sets forth the capital expenditures paid for each of our segments: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (In thousands) Fleet Management Solutions $ 503,874 $ 256,216 $ 871,582 $ 679,332 Supply Chain Solutions 14,450 13,868 22,980 19,874 Dedicated Transportation Solutions 256 339 562 763 Central Support Services 4,768 3,547 9,275 4,961 Purchases of property and revenue earning equipment $ 523,348 $ 273,970 $ 904,399 $ 704,930 |
GENERAL (Details)
GENERAL (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Accounting Changes and Error Corrections [Abstract] | |
Number of segments | 3 |
REVENUE Disaggregation of Reven
REVENUE Disaggregation of Revenue - Geographical (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 2,382,237 | $ 1,895,282 | $ 4,603,859 | $ 4,056,588 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,131,624 | 1,703,799 | 4,114,686 | 3,621,438 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 127,291 | 97,536 | 249,449 | 216,882 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 68,142 | 56,249 | 135,230 | 128,200 |
Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 55,180 | 37,698 | 104,494 | 90,068 |
SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 775,630 | 519,318 | 1,482,330 | 1,147,765 |
Operating Segments | FMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,408,241 | 1,198,177 | 2,743,726 | 2,538,414 |
Operating Segments | FMS | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,263,250 | 1,081,448 | 2,461,234 | 2,278,969 |
Operating Segments | FMS | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 76,849 | 60,480 | 147,262 | 131,245 |
Operating Segments | FMS | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 68,142 | 56,249 | 135,230 | 128,200 |
Operating Segments | FMS | Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 775,630 | 519,318 | 1,482,330 | 1,147,765 |
Operating Segments | SCS | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 661,715 | 441,332 | 1,263,013 | 963,857 |
Operating Segments | SCS | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 58,735 | 40,288 | 114,823 | 93,840 |
Operating Segments | SCS | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | SCS | Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 55,180 | 37,698 | 104,494 | 90,068 |
Operating Segments | DTS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 354,711 | 293,944 | 675,218 | 628,832 |
Operating Segments | DTS | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 354,711 | 293,944 | 675,218 | 628,832 |
Operating Segments | DTS | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | DTS | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | DTS | Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (156,345) | (116,157) | (297,415) | (258,423) |
Eliminations | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (148,052) | (112,925) | (284,779) | (250,220) |
Eliminations | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (8,293) | (3,232) | (12,636) | (8,203) |
Eliminations | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUE Disaggregation of Rev_2
REVENUE Disaggregation of Revenue - Industry (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 2,382,237 | $ 1,895,282 | $ 4,603,859 | $ 4,056,588 |
SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 775,630 | 519,318 | 1,482,330 | 1,147,765 |
Automotive | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 307,499 | 147,749 | 579,054 | 397,674 |
Technology and healthcare | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 109,950 | 84,766 | 207,035 | 175,899 |
Consumer packaged goods and retail | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 286,262 | 236,499 | 559,486 | 466,431 |
Industrial and other | SCS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 71,919 | $ 50,304 | $ 136,755 | $ 107,761 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Lease & related maintenance and rental revenues | $ 986,694 | $ 868,660 | $ 1,927,116 | $ 1,796,416 |
Contracted not recognized revenue | 2,500,000 | 2,500,000 | ||
Maintenance Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Lease & related maintenance and rental revenues | $ 260,000 | $ 238,000 | $ 510,000 | $ 478,000 |
REVENUE - Changes in Contract L
REVENUE - Changes in Contract Liability (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Balance as of beginning of period | $ 629,739 | $ 603,687 |
Recognized as revenue during period from beginning balance | (109,558) | (103,089) |
Consideration deferred during period, net | 91,456 | 116,524 |
Foreign currency translation adjustment and other | 1,499 | (3,150) |
Balance as of end of period | $ 613,136 | $ 613,972 |
RECEIVABLES, NET - Summary (Det
RECEIVABLES, NET - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Trade | $ 1,160,076 | $ 1,051,618 |
Sales-type leases | 137,535 | 132,003 |
Other, primarily warranty and insurance | 41,926 | 41,753 |
Receivables, gross | 1,339,537 | 1,225,374 |
Allowance for credit losses and other | (40,632) | (43,024) |
Total | $ 1,298,905 | $ 1,182,350 |
RECEIVABLES, NET - Allowance fo
RECEIVABLES, NET - Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance as of beginning of period | $ 43,024 | $ 22,761 |
Changes to provisions for credit losses | (1,076) | 32,600 |
Impact of adoption of new accounting standard, write-offs, and other | (1,316) | (10,453) |
Balance as of end of period | $ 40,632 | $ 44,908 |
REVENUE EARNING EQUIPMENT, NE_2
REVENUE EARNING EQUIPMENT, NET - Schedule of Revenue Earning Equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Revenue Earning Equipment [Line Items] | ||
Cost | $ 14,578,331 | $ 14,765,761 |
Accumulated Depreciation | (6,047,232) | (5,988,746) |
Net Book Value | $ 8,531,099 | 8,777,015 |
Trucks | ||
Revenue Earning Equipment [Line Items] | ||
Estimated useful life, minimum | 3 years | |
Estimated useful life, maximum | 7 years | |
Cost | $ 5,195,420 | 5,061,266 |
Accumulated Depreciation | (1,945,096) | (1,818,594) |
Net Book Value | $ 3,250,324 | 3,242,672 |
Tractors | ||
Revenue Earning Equipment [Line Items] | ||
Estimated useful life, minimum | 4 years | |
Estimated useful life, maximum | 7 years 6 months | |
Cost | $ 7,247,325 | 7,013,595 |
Accumulated Depreciation | (3,040,912) | (2,853,591) |
Net Book Value | $ 4,206,413 | 4,160,004 |
Trailers and other | ||
Revenue Earning Equipment [Line Items] | ||
Estimated useful life, minimum | 9 years 6 months | |
Estimated useful life, maximum | 12 years | |
Cost | $ 1,765,247 | 2,046,768 |
Accumulated Depreciation | (768,590) | (804,006) |
Net Book Value | 996,657 | 1,242,762 |
Held for sale | ||
Revenue Earning Equipment [Line Items] | ||
Cost | 370,339 | 644,132 |
Accumulated Depreciation | (292,634) | (512,555) |
Net Book Value | $ 77,705 | $ 131,577 |
REVENUE EARNING EQUIPMENT, NE_3
REVENUE EARNING EQUIPMENT, NET - Narrative (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Revenue Earning Equipment [Line Items] | ||
Percentage of impacted on fleet by adjusted of residual values and useful lives, revenue earning equipment | 15.00% | |
Minimum | ||
Revenue Earning Equipment [Line Items] | ||
Revenue earning equipment, residual value life | 12 months | |
Maximum | ||
Revenue Earning Equipment [Line Items] | ||
Revenue earning equipment, residual value life | 24 months |
REVENUE EARNING EQUIPMENT, NE_4
REVENUE EARNING EQUIPMENT, NET - Summary of Accelerated and Policy Depreciation, Residual Value Estimate Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue Earning Equipment [Abstract] | ||||
Accelerated depreciation | $ 12,000 | $ 77,000 | $ 42,000 | $ 156,000 |
Policy depreciation | 63,000 | 68,000 | 121,000 | 119,000 |
Used vehicle sales, net | $ (51,634) | $ 9,488 | $ (80,485) | $ 30,172 |
REVENUE EARNING EQUIPMENT, NE_5
REVENUE EARNING EQUIPMENT, NET - Level 3 Fair Value Measurement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Revenue Earning Equipment [Line Items] | |||||
Valuation adjustments | $ 3,087 | $ 11,016 | $ 6,108 | $ 32,524 | |
Net book value of assets held for sale | 72,000 | 72,000 | $ 121,000 | ||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | |||||
Revenue Earning Equipment [Line Items] | |||||
Assets held for sale | 5,768 | 5,768 | 10,151 | ||
Valuation adjustments | 3,087 | 11,016 | 6,108 | 32,524 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | Trucks | |||||
Revenue Earning Equipment [Line Items] | |||||
Assets held for sale | 2,209 | 2,209 | 3,848 | ||
Valuation adjustments | 684 | 5,389 | 1,574 | 16,451 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | Tractors | |||||
Revenue Earning Equipment [Line Items] | |||||
Assets held for sale | 1,383 | 1,383 | 2,211 | ||
Valuation adjustments | 575 | 3,035 | 659 | 11,488 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | Trailers and other | |||||
Revenue Earning Equipment [Line Items] | |||||
Assets held for sale | 2,176 | 2,176 | $ 4,092 | ||
Valuation adjustments | $ 1,828 | $ 2,592 | $ 3,875 | $ 4,585 |
REVENUE EARNING EQUIPMENT, NE_6
REVENUE EARNING EQUIPMENT, NET - Recognized Gains on Used Vehicles (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue Earning Equipment [Abstract] | ||||
Gains on vehicle sales, net | $ (54,721) | $ (1,528) | $ (86,593) | $ (2,352) |
Losses from valuation adjustments | 3,087 | 11,016 | 6,108 | 32,524 |
Used vehicle sales, net | $ (51,634) | $ 9,488 | $ (80,485) | $ 30,172 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Accrued Expenses | ||||
Salaries and wages | $ 167,568 | $ 158,122 | ||
Deferred compensation | 5,613 | 5,117 | ||
Pension benefits | 3,787 | 3,776 | ||
Other postretirement benefits | 1,386 | 1,381 | ||
Other employee benefits | 13,755 | 20,599 | ||
Insurance obligations | 174,582 | 169,936 | ||
Operating taxes | 174,058 | 164,293 | ||
Income taxes | 3,133 | 4,588 | ||
Interest | 38,129 | 38,887 | ||
Deposits, mainly from customers | 90,349 | 79,840 | ||
Operating lease liabilities | 80,657 | 78,785 | ||
Deferred revenue | 187,467 | 183,474 | ||
Restructuring liabilities | 3,293 | 7,683 | ||
Other | 77,055 | 72,697 | ||
Total | 1,020,832 | 989,178 | ||
Non-Current Liabilities | ||||
Salaries and wages | 0 | 0 | ||
Deferred compensation | 84,975 | 77,823 | ||
Pension benefits | 258,341 | 265,178 | ||
Other postretirement benefits | 17,490 | 20,245 | ||
Other employee benefits | 0 | 0 | ||
Insurance obligations | 300,086 | 292,298 | ||
Operating taxes | 41,683 | 41,687 | ||
Income taxes | 16,326 | 15,598 | ||
Interest | 0 | 0 | ||
Deposits, mainly from customers | 3,014 | 3,014 | ||
Operating lease liabilities | 172,377 | 186,429 | ||
Deferred revenue | 425,669 | 446,265 | ||
Restructuring liabilities | 0 | 0 | ||
Other | 51,092 | 55,324 | ||
Total | 1,371,053 | 1,403,861 | ||
Total | ||||
Salaries and wages | 167,568 | 158,122 | ||
Deferred compensation | 90,588 | 82,940 | ||
Pension benefits | 262,128 | 268,954 | ||
Other postretirement benefits | 18,876 | 21,626 | ||
Other employee benefits | 13,755 | 20,599 | ||
Insurance obligations | 474,668 | 462,234 | ||
Operating taxes | 215,741 | 205,980 | ||
Income taxes | 19,459 | 20,186 | ||
Interest | 38,129 | 38,887 | ||
Deposits, mainly from customers | 93,363 | 82,854 | ||
Operating lease liabilities | 253,034 | 265,214 | ||
Deferred revenue | 613,136 | 629,739 | $ 613,972 | $ 603,687 |
Restructuring liabilities | 3,293 | 7,683 | ||
Other | 128,147 | 128,021 | ||
Total | $ 2,391,885 | $ 2,393,039 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Contingency [Line Items] | ||||
Effective income tax rate from continuing operations, expense (benefit) | 26.50% | 22.20% | 26.50% | 12.30% |
Charge related to expiring state net operating losses | $ 7 | |||
Foreign Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Valuation allowance recorded | $ 13 |
LEASES - Lease Income (Details)
LEASES - Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating leases | ||||
Lease income related to ChoiceLease | $ 386,650 | $ 385,639 | $ 776,261 | $ 785,227 |
Lease income related to commercial rental | 255,098 | 161,220 | 465,382 | 356,915 |
Sales-type leases | ||||
Interest income related to net investment in leases | 11,040 | 12,080 | 25,455 | 23,724 |
Variable lease income excluding commercial rental | $ 72,129 | $ 58,882 | $ 144,122 | $ 124,389 |
Minimum | ||||
Sales-type leases | ||||
Variable lease income as a percent of commercial rental income | 15.00% | |||
Maximum | ||||
Sales-type leases | ||||
Variable lease income as a percent of commercial rental income | 25.00% |
LEASES - Components of Net Inve
LEASES - Components of Net Investment in Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Net investment in the lease — lease payment receivable | $ 589,935 | $ 589,120 |
Net investment in the lease — unguaranteed residual value in assets | 46,034 | 44,704 |
Net investment in the lease, gross | 635,969 | 633,824 |
Estimated loss allowance | (4,066) | (4,025) |
Total | $ 631,903 | $ 629,799 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt: | ||
Debt, gross | $ 6,257,667 | $ 6,636,615 |
Debt issuance costs and original issue discounts | (21,996) | (26,379) |
Total debt | 6,235,671 | 6,610,236 |
Short-term debt and current portion of long-term debt | (1,362,669) | (516,581) |
Long-term debt | 4,873,002 | 6,093,655 |
Interest Rate Swap | Fair Value Hedging | Designated as Hedging Instrument | ||
Debt: | ||
Aggregate notional amount of interest rate swaps | $ 150,000 | 150,000 |
U.S. commercial paper | ||
Debt: | ||
Weighted Average Interest Rate | 0.19% | |
Debt, gross | $ 55,522 | 214,375 |
Canadian commercial paper | ||
Debt: | ||
Weighted Average Interest Rate | 0.30% | |
Debt, gross | $ 25,004 | 62,800 |
Trade receivables program | ||
Debt: | ||
Weighted Average Interest Rate | 0.00% | |
Debt, gross | $ 0 | 0 |
Global revolving credit facility | ||
Debt: | ||
Weighted Average Interest Rate | 0.00% | |
Debt, gross | $ 0 | 200 |
Unsecured U.S. obligations | ||
Debt: | ||
Weighted Average Interest Rate | 3.47% | |
Debt, gross | $ 200,000 | 200,000 |
Unsecured U.S. notes — Medium-term notes | ||
Debt: | ||
Weighted Average Interest Rate | 3.41% | |
Debt, gross | $ 5,152,922 | 5,174,180 |
Unsecured foreign obligations | ||
Debt: | ||
Weighted Average Interest Rate | 1.87% | |
Debt, gross | $ 167,182 | 254,259 |
Asset-backed U.S. obligations | ||
Debt: | ||
Weighted Average Interest Rate | 2.56% | |
Debt, gross | $ 611,275 | 682,383 |
Finance lease obligations and other | ||
Debt: | ||
Debt, gross | $ 45,762 | $ 48,418 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | Jul. 28, 2021USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |||
Fair value of total debt | $ 5,900,000,000 | $ 6,300,000,000 | |
Available proceeds under program | 300,000,000 | ||
Letters of credit and surety bonds outstanding | $ 458,000,000 | $ 519,000,000 | |
Maximum | |||
Debt Instrument [Line Items] | |||
Ratio of debt to consolidated net worth | 3 | ||
Global revolving credit facility | |||
Debt Instrument [Line Items] | |||
Debt to consolidated tangible net worth ratio | 1.77 | ||
Global revolving credit facility | Letter of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit remaining capacity | $ 1,300,000,000 | ||
Medium Term Notes due November 15, 2021 | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Debt issued | $ 300,000,000 | ||
Debt percentage of principal amount | 3.45% |
SHARE REPURCHASE PROGRAMS (Deta
SHARE REPURCHASE PROGRAMS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | |
Accelerated Share Repurchases [Line Items] | ||||
Common stock repurchases | $ 29,534 | $ 48,978 | $ 11,924 | |
Common Stock | ||||
Accelerated Share Repurchases [Line Items] | ||||
Repurchased and retired shares (in shares) | 350,044 | 638,001 | 303,098 | |
Common stock repurchases | $ 175 | $ 319 | $ 152 | |
2019 Share Repurchase Program | Common Stock | ||||
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 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Shareholders' equity | $ 2,418,214 | $ 2,279,687 | $ 2,255,557 | $ 2,159,092 | $ 2,242,736 | $ 2,476,310 |
Cumulative translation adjustments | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Shareholders' equity | (132,115) | (228,121) | ||||
Net actuarial loss and prior service cost | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Shareholders' equity | (644,008) | (658,866) | ||||
Unrealized gain (loss) from cash flow hedges | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Shareholders' equity | (11,559) | (17,653) | ||||
Accumulated other comprehensive loss | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Shareholders' equity | $ (787,682) | $ (802,767) | $ (817,205) | $ (904,640) | $ (914,945) | $ (836,491) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Calculation of basic and diluted earnings per common share from continuing operations | ||||
Earnings (loss) from continuing operations | $ 149,568 | $ (73,705) | $ 201,152 | $ (182,834) |
Less: Distributed and undistributed earnings allocated to unvested stock | (703) | (130) | (940) | (248) |
Earnings (loss) from continuing operations available to common shareholders | $ 148,865 | $ (73,835) | $ 200,212 | $ (183,082) |
Weighted average common shares outstanding - Basic (in shares) | 52,378 | 52,355 | 52,333 | 52,320 |
Effect of dilutive equity awards (in shares) | 1,213 | 0 | 1,039 | 0 |
Weighted average common shares outstanding — Diluted (in shares) | 53,591 | 52,355 | 53,372 | 52,320 |
Earnings (loss) from continuing operations per common share — Basic (in dollars per share) | $ 2.84 | $ (1.41) | $ 3.83 | $ (3.50) |
Earnings (loss) from continuing operations per common share - Diluted (in dollars per share) | $ 2.78 | $ (1.41) | $ 3.75 | $ (3.50) |
Anti-dilutive equity awards not included in diluted EPS (in shares) | 417 | 3,612 | 958 | 3,498 |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 12,617 | $ 7,539 | $ 23,294 | $ 10,630 |
Income tax benefit | (1,981) | (1,307) | (3,513) | (1,485) |
Share-based compensation expense, net of tax | 10,636 | 6,232 | 19,781 | 9,145 |
Stock option and stock purchase plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 636 | 1,052 | 1,637 | 2,409 |
Unvested stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 11,981 | $ 6,487 | $ 21,657 | $ 8,221 |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Share-based Payment Arrangement [Abstract] | |
Compensation cost not yet recognized | $ 64 |
Compensation cost not yet recognized, period for recognition | 2 years 1 month 6 days |
Vesting period | 3 years |
SHARE-BASED COMPENSATION PLAN_4
SHARE-BASED COMPENSATION PLANS - Summary of Awards Granted in Period (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Granted (in shares) | shares | 510 |
Weighted-Average Fair Market Value (in dollars per share) | $ / shares | $ 65.41 |
Time-vested restricted stock rights | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Granted (in shares) | shares | 391 |
Weighted-Average Fair Market Value (in dollars per share) | $ / shares | $ 64.89 |
Performance-based restricted stock rights | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Granted (in shares) | shares | 119 |
Weighted-Average Fair Market Value (in dollars per share) | $ / shares | $ 67.11 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Contribution to pension plans | $ 2,000 | |||
Expected plan contributions | $ 7,000 | 7,000 | ||
Pension Plan | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | 2,442 | $ 6,566 | 5,389 | $ 13,729 |
Pension Plan | Company-administered plans | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | 180 | 2,741 | 548 | 5,954 |
Interest cost | 14,483 | 17,353 | 29,018 | 34,885 |
Expected return on plan assets | (21,791) | (23,948) | (43,485) | (48,211) |
Amortization of net actuarial loss and prior service cost | 7,031 | 7,622 | 14,128 | 15,524 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | (97) | 3,768 | 209 | 8,152 |
Pension Plan | Company-administered plans | U.S. | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | 2,090 | 6,055 | 4,453 | 12,833 |
Pension Plan | Company-administered plans | Non-U.S. | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | (2,187) | (2,287) | (4,244) | (4,681) |
Pension Plan | Multi-employer plans | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | $ 2,539 | $ 2,798 | $ 5,180 | $ 5,577 |
OTHER ITEMS IMPACTING COMPARA_3
OTHER ITEMS IMPACTING COMPARABILITY - Schedule of Other Items Impacting Comparability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | ||||
Restructuring and other, net | $ 2,577 | $ 26,168 | $ 5,605 | $ 46,789 |
ERP implementation costs | 5,090 | 11,032 | 12,721 | 21,358 |
Restructuring and other items, net | 7,667 | 37,200 | 18,326 | 68,147 |
Gains on sale of properties | (35,263) | 0 | (36,768) | 0 |
Choice lease liability insurance revenue | 0 | (7,409) | (777) | (16,767) |
Other items impacting comparability, net | $ (27,596) | $ 29,792 | $ (19,219) | $ 51,381 |
OTHER ITEMS IMPACTING COMPARA_4
OTHER ITEMS IMPACTING COMPARABILITY - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other, net | $ 2,577 | $ 26,168 | $ 5,605 | $ 46,789 |
Discontinued Insurance Liability Program and Shutdown of Leased Locations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other, net | $ 9,000 | $ 24,000 | ||
Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other, net | $ 13,000 |
CONTINGENCIES AND OTHER MATTE_2
CONTINGENCIES AND OTHER MATTERS (Details) - complaint | Feb. 08, 2021 | Feb. 02, 2021 | Jan. 19, 2021 | Aug. 06, 2020 | Jun. 26, 2020 |
Commitments and Contingencies Disclosure [Abstract] | |||||
Number of shareholder derivative complaints | 2 | 3 | 2 | 3 | 3 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 104,417 | $ 123,258 |
Income taxes paid | 15,812 | 4,997 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Finance leases | 5,622 | 5,511 |
Operating leases | 30,274 | 52,640 |
Capital expenditures acquired but not yet paid | $ 167,587 | $ 75,576 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Lease & related maintenance and rental revenues | $ 986,694 | $ 868,660 | $ 1,927,116 | $ 1,796,416 |
Revenues | 2,382,237 | 1,895,282 | 4,603,859 | 4,056,588 |
Earnings (loss) from continuing operations before taxes | 193,468 | (53,331) | 290,535 | (134,769) |
Non-operating pension costs | 373 | (936) | 382 | (2,157) |
Other items impacting comparability, net | (7,667) | (37,200) | (18,326) | (68,147) |
Earnings (loss) from continuing operations before income taxes | 203,573 | (94,777) | 273,840 | (208,411) |
Capital expenditures paid | 523,348 | 273,970 | 904,399 | 704,930 |
Supply Chain Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 775,630 | 519,318 | 1,482,330 | 1,147,765 |
Operating Segments | Fleet Management Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,408,241 | 1,198,177 | 2,743,726 | 2,538,414 |
Earnings (loss) from continuing operations before taxes | 158,451 | (103,735) | 221,853 | (218,309) |
Capital expenditures paid | 503,874 | 256,216 | 871,582 | 679,332 |
Operating Segments | Fleet Management Solutions | ChoiceLease | ||||
Segment Reporting Information [Line Items] | ||||
Lease & related maintenance and rental revenues | 802,832 | 766,161 | 1,599,920 | 1,558,367 |
Operating Segments | Fleet Management Solutions | SelectCare | ||||
Segment Reporting Information [Line Items] | ||||
Lease & related maintenance and rental revenues | 136,503 | 125,851 | 267,171 | 261,997 |
Operating Segments | Fleet Management Solutions | Commercial rental | ||||
Segment Reporting Information [Line Items] | ||||
Lease & related maintenance and rental revenues | 266,969 | 169,171 | 489,978 | 374,937 |
Operating Segments | Fleet Management Solutions | Other | ||||
Segment Reporting Information [Line Items] | ||||
Lease & related maintenance and rental revenues | 18,369 | 12,332 | 35,717 | 35,758 |
Operating Segments | Fleet Management Solutions | Fuel services revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 183,568 | 117,253 | 350,163 | 290,588 |
Operating Segments | Fleet Management Solutions | Choice lease liability insurance revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 7,409 | 777 | 16,767 |
Operating Segments | Supply Chain Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 775,630 | 519,318 | 1,482,330 | 1,147,765 |
Earnings (loss) from continuing operations before taxes | 41,041 | 36,916 | 73,998 | 67,941 |
Capital expenditures paid | 14,450 | 13,868 | 22,980 | 19,874 |
Operating Segments | Dedicated Transportation Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 354,711 | 293,944 | 675,218 | 628,832 |
Earnings (loss) from continuing operations before taxes | 13,162 | 21,233 | 26,144 | 33,413 |
Capital expenditures paid | 256 | 339 | 562 | 763 |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (156,345) | (116,157) | (297,415) | (258,423) |
Earnings (loss) from continuing operations before taxes | (19,186) | (7,745) | (31,460) | (17,814) |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated Central Support Services | (17,864) | (10,718) | (36,296) | (20,104) |
Non-operating pension costs | 373 | (936) | 382 | (2,157) |
Other items impacting comparability, net | 27,596 | (29,792) | 19,219 | (51,381) |
Capital expenditures paid | $ 4,768 | $ 3,547 | $ 9,275 | $ 4,961 |
Uncategorized Items - r-2021063
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2018-02 [Member] |