Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | OLD DOMINION FREIGHT LINE INC/VA | |
Entity Central Index Key | 0000878927 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ODFL | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Title of 12(b) Security | Common Stock ($0.10 par value) | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 79,823,521 | |
Entity Shell Company | false | |
Entity File Number | 0-19582 | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 56-0751714 | |
Entity Address, Address Line One | 500 Old Dominion Way | |
Entity Address, City or Town | Thomasville | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27360 | |
City Area Code | 336 | |
Local Phone Number | 889-5000 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 322,286 | $ 190,282 |
Customer receivables, less allowances of $9,279 and $9,913, respectively | 425,850 | 427,569 |
Other receivables | 12,225 | 40,691 |
Prepaid expenses and other current assets | 46,617 | 47,687 |
Total current assets | 806,978 | 706,229 |
Property and equipment: | ||
Revenue equipment | 1,916,392 | 1,811,233 |
Land and structures | 1,972,038 | 1,796,868 |
Other fixed assets | 487,635 | 454,432 |
Leasehold improvements | 11,538 | 10,619 |
Total property and equipment | 4,387,603 | 4,073,152 |
Accumulated depreciation | (1,459,709) | (1,318,209) |
Net property and equipment | 2,927,894 | 2,754,943 |
Goodwill | 19,463 | 19,463 |
Other assets | 138,083 | 64,648 |
Total assets | 3,892,418 | 3,545,283 |
Current liabilities: | ||
Accounts payable | 81,269 | 78,518 |
Compensation and benefits | 201,122 | 198,456 |
Claims and insurance accruals | 51,613 | 53,263 |
Other accrued liabilities | 53,728 | 26,495 |
Income taxes payable | 9,130 | |
Total current liabilities | 396,862 | 356,732 |
Long-term liabilities: | ||
Long-term debt | 45,000 | 45,000 |
Other non-current liabilities | 293,359 | 215,399 |
Deferred income taxes | 247,669 | 247,669 |
Total long-term liabilities | 586,028 | 508,068 |
Total liabilities | 982,890 | 864,800 |
Commitments and contingent liabilities | ||
Shareholders’ equity: | ||
Common stock - $0.10 par value, 140,000,000 shares authorized, 79,884,372 and 81,231,131 shares outstanding at September 30, 2019 and December 31, 2018, respectively | 7,988 | 8,123 |
Capital in excess of par value | 146,085 | 142,176 |
Retained earnings | 2,755,455 | 2,530,184 |
Total shareholders’ equity | 2,909,528 | 2,680,483 |
Total liabilities and shareholders’ equity | $ 3,892,418 | $ 3,545,283 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Customer receivables, allowances | $ 9,279 | $ 9,913 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 140,000,000 | 140,000,000 |
Common stock, shares outstanding | 79,884,372 | 81,231,131 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue from operations | $ 1,048,457 | $ 1,058,233 | $ 3,099,905 | $ 3,016,751 |
Operating expenses: | ||||
Salaries, wages and benefits | 533,451 | 536,513 | 1,588,378 | 1,560,073 |
Operating supplies and expenses | 117,343 | 127,557 | 361,110 | 370,059 |
General supplies and expenses | 33,633 | 31,209 | 97,584 | 91,076 |
Operating taxes and licenses | 29,117 | 27,952 | 87,572 | 82,905 |
Insurance and claims | 11,280 | 12,069 | 34,039 | 34,510 |
Communications and utilities | 8,098 | 8,215 | 22,071 | 22,700 |
Depreciation and amortization | 63,493 | 58,086 | 189,137 | 167,802 |
Purchased transportation | 23,063 | 25,373 | 68,218 | 73,157 |
Miscellaneous expenses, net | 11,452 | 2,874 | 21,354 | 16,263 |
Total operating expenses | 830,930 | 829,848 | 2,469,463 | 2,418,545 |
Operating income | 217,527 | 228,385 | 630,442 | 598,206 |
Non-operating (income) expense: | ||||
Interest expense | 3 | 29 | 285 | 51 |
Interest income | (1,714) | (778) | (4,966) | (1,902) |
Other expense (income), net | 844 | (70) | 768 | 1,895 |
Total non-operating (income) expense | (867) | (819) | (3,913) | 44 |
Income before income taxes | 218,394 | 229,204 | 634,355 | 598,162 |
Provision for income taxes | 54,295 | 55,762 | 162,861 | 151,953 |
Net income | $ 164,099 | $ 173,442 | $ 471,494 | $ 446,209 |
Earnings per share: | ||||
Basic | $ 2.05 | $ 2.12 | $ 5.86 | $ 5.44 |
Diluted | $ 2.05 | $ 2.12 | $ 5.85 | $ 5.43 |
Weighted average shares outstanding: | ||||
Basic | 79,880,281 | 81,885,262 | 80,474,342 | 82,067,519 |
Diluted | 79,989,435 | 81,975,774 | 80,588,557 | 82,165,731 |
Dividends declared per share | $ 0.17 | $ 0.13 | $ 0.51 | $ 0.39 |
Condensed Statements of Changes
Condensed Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2017 | $ 8,238 | $ 138,359 | $ 2,130,257 | |
Share repurchases | (52) | (76,537) | ||
Cash dividends declared | (32,027) | |||
Share-based compensation and restricted share issuances, net of taxes | 3 | 2,482 | ||
Net income | 446,209 | |||
Balance at Sep. 30, 2018 | $ 2,616,932 | 8,189 | 140,841 | 2,467,902 |
Balance at Jun. 30, 2018 | 8,208 | 139,557 | 2,334,286 | |
Share repurchases | (19) | (29,176) | ||
Cash dividends declared | (10,650) | |||
Share-based compensation and restricted share issuances, net of taxes | 0 | 1,284 | ||
Net income | 173,442 | |||
Balance at Sep. 30, 2018 | 2,616,932 | 8,189 | 140,841 | 2,467,902 |
Balance at Dec. 31, 2018 | 2,680,483 | 8,123 | 142,176 | 2,530,184 |
Share repurchases | (141) | (205,205) | ||
Cash dividends declared | (41,018) | |||
Share-based compensation and restricted share issuances, net of taxes | 6 | 3,909 | ||
Net income | 471,494 | |||
Balance at Sep. 30, 2019 | 2,909,528 | 7,988 | 146,085 | 2,755,455 |
Balance at Jun. 30, 2019 | 8,014 | 144,938 | 2,645,533 | |
Share repurchases | (26) | (40,588) | ||
Cash dividends declared | (13,589) | |||
Share-based compensation and restricted share issuances, net of taxes | 0 | 1,147 | ||
Net income | 164,099 | |||
Balance at Sep. 30, 2019 | $ 2,909,528 | $ 7,988 | $ 146,085 | $ 2,755,455 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 471,494 | $ 446,209 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 189,137 | 167,802 |
Loss (gain) on disposal of property and equipment | 5,624 | (72) |
Share-based compensation | 5,363 | 3,559 |
Other operating activities, net | 75,897 | 57,920 |
Net cash provided by operating activities | 747,515 | 675,418 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (370,310) | (469,866) |
Proceeds from sale of property and equipment | 2,598 | 3,329 |
Other investing, net | 799 | |
Net cash used in investing activities | (367,712) | (465,738) |
Cash flows from financing activities: | ||
Principal payments under long-term debt agreements | (50,000) | |
Payments for share repurchases | (205,346) | (76,589) |
Dividends paid | (41,005) | (32,011) |
Other financing activities, net | (1,448) | (1,074) |
Net cash used in financing activities | (247,799) | (159,674) |
Increase in cash and cash equivalents | 132,004 | 50,006 |
Cash and cash equivalents at beginning of period | 190,282 | 127,462 |
Cash and cash equivalents at end of period | $ 322,286 | $ 177,468 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1. Significant Accounting Policies Business We are a leading, less-than-truckload (“LTL”), union-free motor carrier providing regional, inter-regional and national LTL services through a single integrated organization. Our service offerings, which include expedited transportation, are provided through an expansive network of service centers located throughout the continental United States. Through strategic alliances, we also provide LTL services throughout North America. In addition to our core LTL services, we offer a range of value-added services including container drayage, truckload brokerage and supply chain consulting. We have one operating segment and the composition of our revenue is summarized below: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2019 2018 2019 2018 LTL services $ 1,035,093 $ 1,041,854 $ 3,058,864 $ 2,971,399 Other services 13,364 16,379 41,041 45,352 Total revenue from operations $ 1,048,457 $ 1,058,233 $ 3,099,905 $ 3,016,751 Basis of Presentation The accompanying unaudited, interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and, in management’s opinion, contain all adjustments (consisting of normal recurring items) necessary for a fair presentation, in all material respects, of the financial position and results of operations for the periods presented. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The preparation of condensed financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Our operating results are subject to seasonal trends; therefore, the results of operations for the interim period ended September 30, 2019 are not necessarily indicative of the results that may be expected for the subsequent quarterly period or the year ending December 31, 2019. The condensed financial statements should be read in conjunction with the financial statements and related notes, which appear in our Annual Report on Form 10-K for the year ended December 31, 2018. There have been no significant changes in the accounting principles and policies, long-term contracts or estimates inherent in the preparation of the condensed financial statements of Old Dominion Freight Line, Inc. as previously described in our Annual Report on Form 10-K for the year ended December 31, 2018, other than those disclosed in this Form 10-Q. Certain amounts in prior years have been reclassified to conform prior years’ financial statements to the current presentation. Unless the context requires otherwise, references in these Notes to “Old Dominion,” the “Company,” “we,” “us” and “our” refer to Old Dominion Freight Line, Inc. Fair Values of Financial Instruments The carrying values of financial instruments in current assets and current liabilities approximate their fair value due to the short maturities of these instruments. The carrying value of our total long-term debt was $45.0 million at each of September 30, 2019 and December 31, 2018. The estimated fair value of our total long-term debt was $46.2 million and $45.6 million at September 30, 2019 and December 31, 2018, respectively. The fair value measurement of our senior notes was determined using a discounted cash flow analysis that factors in current market yields for comparable borrowing arrangements under our credit profile. Since this methodology is based upon market yields for comparable arrangements, the measurement is categorized as Level 2 under the three-level fair value hierarchy as established by the Financial Accounting Standards Board (the “FASB”). Stock Repurchase Program During the second quarter of 2019, we completed our stock repurchase program, previously announced on May 17, 2018, to repurchase up to an aggregate of $250.0 million of our outstanding common stock. On May 16, 2019, we announced that our Board of Directors had approved a new two-year stock repurchase program authorizing us to repurchase up to an aggregate of $350.0 million of our outstanding common stock (the “2019 Repurchase Program”). Under the 2019 Repurchase Program, which became effective upon the expiration of our prior stock repurchase program, we may repurchase shares from time to time in open market purchases or through privately negotiated transactions. Shares of our common stock repurchased under our repurchase programs are canceled at the time of repurchase and are classified as authorized but unissued shares of our common stock. During the three and nine months ended September 30, 2019, we repurchased 254,294 shares of our common stock for $40.6 million and 1,406,208 shares of our common stock for $205.3 million under our repurchase programs, respectively. As of September 30, 2019, we had $276.4 million remaining authorized under the 2019 Repurchase Program. Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, “Leases” (Topic 842). This ASU requires a lessee to recognize a right-of-use asset and a lease liability on its balance sheet for most operating leases. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, including interim periods within those fiscal years. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which provided companies with an additional optional transition method to apply the new standard to leases in effect at the adoption date through a cumulative effect adjustment. We adopted the new lease standard on January 1, 2019 using this optional transition method. We elected the package of practical expedients referenced in ASU 2016-02, which permits companies to retain original lease identification and classification without reassessing initial direct costs for existing leases. We also elected (i) the practical expedient that exempts leases with an initial lease term of twelve months or less, (ii) the practical expedient that allows companies to select, by class of underlying asset, not to separate lease and non-lease components, and (iii) the practical expedient that allows companies to apply hindsight in determining lease terms. Our adoption of this standard resulted in the recognition of right-of-use assets and corresponding lease liabilities of $68.0 million and $69.1 million, respectively, as of January 1, 2019. There were no material impacts to our results of operations or our cash flows. Disclosures related to the amount, timing, and uncertainty of cash flows arising from our leases are included in Note 4. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 2. Earnings Per Share Basic earnings per share is computed by dividing net income by the daily weighted average number of shares of our common stock outstanding for the period, excluding shares of unvested restricted stock and contingently-issuable shares. Unvested restricted stock is included in shares of common stock outstanding on our Condensed Balance Sheets. Diluted earnings per share is computed using the treasury stock method. The denominator used in calculating diluted earnings per share includes shares of unvested restricted stock, but excludes contingently-issuable shares under performance-based award agreements when the performance target has not yet been deemed achieved. The following table provides a reconciliation of the number of shares of common stock used in computing basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Weighted average shares outstanding - basic 79,880,281 81,885,262 80,474,342 82,067,519 Dilutive effect of share-based awards 109,154 90,512 114,215 98,212 Weighted average shares outstanding - diluted 79,989,435 81,975,774 80,588,557 82,165,731 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 3. Long-Term Debt Long-term debt consisted of the following: (In thousands) September 30, 2019 December 31, 2018 Senior notes $ 45,000 $ 45,000 Revolving credit facility — — Total long-term debt 45,000 45,000 Less: Current maturities — — Total maturities due after one year $ 45,000 $ 45,000 We had one unsecured senior note agreement with an amount outstanding of $45.0 million at each of September 30, 2019 and December 31, 2018. Our unsecured senior note agreement calls for a scheduled principal payment of $45.0 million due on January 3, 2021. The interest rate on the January 3, 2021 scheduled principal payment is 4.79%. On December 15, 2015, we entered into an amended and restated credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”) serving as administrative agent for the lenders (the “Credit Agreement”). The Credit Agreement originally provided for a five-year, $250.0 million senior unsecured revolving line of credit and a $100.0 million accordion feature, which if fully exercised and approved, would expand the total borrowing capacity up to an aggregate of $350.0 million. On September 9, 2016, we exercised a portion of the accordion feature and entered into an amendment to the Credit Agreement to increase the aggregate commitments from existing lenders by $50.0 million to an aggregate of $300.0 million. Of the $300.0 million line of credit commitments under the Credit Agreement, as amended, up to $100.0 million may be used for letters of credit. At our option, borrowings under the Credit Agreement bear interest at either: (i) LIBOR plus an applicable margin (based on our ratio of net debt-to-total capitalization) that ranges from 1.0% to 1.50%; or (ii) a Base Rate plus an applicable margin (based on our ratio of net debt-to-total capitalization) that ranges from 0.0% to 0.5%. Letter of credit fees equal to the applicable margin for LIBOR loans are charged quarterly in arrears on the daily average aggregate stated amount of all letters of credit outstanding during the quarter. Commitment fees ranging from 0.125% to 0.2% (based upon the ratio of net debt-to-total capitalization) are charged quarterly in arrears on the aggregate unutilized portion of the Credit Agreement. For periods covered under the Credit Agreement, the applicable margin on LIBOR loans and letter of credit fees were 1.0% and commitment fees were 0.125%. There were $49.0 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 4. Leases We lease certain assets under operating leases, which at September 30, 2019 primarily consist of real estate leases for 31 of our 235 service center locations and automotive leases for private passenger vehicles. Certain operating leases provide for renewal options, which can vary by lease and are typically offered at their fair rental value. We have not made any residual value guarantees related to our operating leases; therefore, we have no corresponding liability recorded on our Condensed Balance Sheets. The right-of-use assets and corresponding lease liabilities on our Condensed Balance Sheet represent payments over the lease term, which includes renewal options for certain real estate leases that we are likely to exercise. These renewal options begin in 2020 and continue through 2033, and range from one to ten years in length. Short-term leases, which have an initial term of 12 months or less, are not included in our right-of-use assets. Of our total lease liabilities, $10.7 million is classified as current and is presented within “Other accrued liabilities,” and $57.9 million is classified as non-current and is presented within “Other non-current liabilities,” on our Condensed Balance Sheet as of September 30, 2019. Our right-of-use assets totaled $67.4 million and are presented within “Other assets,” which is classified as long-term, on our Condensed Balance Sheet as of September 30, 2019. Future lease payments for assets under operating leases, as well as a reconciliation to our total lease liabilities as of September 30, 2019, are as follows: (In thousands) Lease Payments (a) Remainder of 2019 $ 3,470 2020 12,672 2021 10,066 2022 7,727 2023 6,288 Thereafter 47,776 Total lease payments $ 87,999 Less: Imputed interest (19,446 ) Total lease liabilities $ 68,553 (a) Lease payments include lease extensions that are reasonably certain to be exercised and exclude $44.8 million in lease payments for leases that have been executed but not yet commenced. The weighted average lease term for our operating leases was 9.3 years as of September 30, 2019. The discount rate used in the calculation of our right-of-use assets and corresponding lease liabilities was determined based on the stated rate within each contract when available, or our collateralized borrowing rate from lending institutions. The weighted average discount rate for our operating leases was 4.0% as of September 30, 2019. For the three- and nine-month periods ended September 30, 2019, cash paid for amounts included in the measurement of our operating leases was $3.5 million and $10.7 million, respectively, while the aggregate lease expense under operating leases was $3.7 million and $11.0 million, respectively. Certain operating leases include rent escalation provisions, which we recognize as expense on a straight-line basis. Lease expense is presented within “Operating supplies and expenses” or “General supplies and expenses,” depending on the nature of the use of the leased asset. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 5. Commitments and Contingencies We are involved in or addressing various legal proceedings and claims, governmental inquiries, notices and investigations that have arisen in the ordinary course of our business and have not been fully adjudicated, some of which may be covered in whole or in part by insurance. Certain of these matters include collective and/or class action allegations. We do not believe that the resolution of any of these matters will have a material adverse effect upon our financial position, results of operations or cash flows. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Business | Business We are a leading, less-than-truckload (“LTL”), union-free motor carrier providing regional, inter-regional and national LTL services through a single integrated organization. Our service offerings, which include expedited transportation, are provided through an expansive network of service centers located throughout the continental United States. Through strategic alliances, we also provide LTL services throughout North America. In addition to our core LTL services, we offer a range of value-added services including container drayage, truckload brokerage and supply chain consulting. We have one operating segment and the composition of our revenue is summarized below: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2019 2018 2019 2018 LTL services $ 1,035,093 $ 1,041,854 $ 3,058,864 $ 2,971,399 Other services 13,364 16,379 41,041 45,352 Total revenue from operations $ 1,048,457 $ 1,058,233 $ 3,099,905 $ 3,016,751 |
Basis of Presentation | Basis of Presentation The accompanying unaudited, interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and, in management’s opinion, contain all adjustments (consisting of normal recurring items) necessary for a fair presentation, in all material respects, of the financial position and results of operations for the periods presented. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The preparation of condensed financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Our operating results are subject to seasonal trends; therefore, the results of operations for the interim period ended September 30, 2019 are not necessarily indicative of the results that may be expected for the subsequent quarterly period or the year ending December 31, 2019. The condensed financial statements should be read in conjunction with the financial statements and related notes, which appear in our Annual Report on Form 10-K for the year ended December 31, 2018. There have been no significant changes in the accounting principles and policies, long-term contracts or estimates inherent in the preparation of the condensed financial statements of Old Dominion Freight Line, Inc. as previously described in our Annual Report on Form 10-K for the year ended December 31, 2018, other than those disclosed in this Form 10-Q. Certain amounts in prior years have been reclassified to conform prior years’ financial statements to the current presentation. Unless the context requires otherwise, references in these Notes to “Old Dominion,” the “Company,” “we,” “us” and “our” refer to Old Dominion Freight Line, Inc. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The carrying values of financial instruments in current assets and current liabilities approximate their fair value due to the short maturities of these instruments. The carrying value of our total long-term debt was $45.0 million at each of September 30, 2019 and December 31, 2018. The estimated fair value of our total long-term debt was $46.2 million and $45.6 million at September 30, 2019 and December 31, 2018, respectively. The fair value measurement of our senior notes was determined using a discounted cash flow analysis that factors in current market yields for comparable borrowing arrangements under our credit profile. Since this methodology is based upon market yields for comparable arrangements, the measurement is categorized as Level 2 under the three-level fair value hierarchy as established by the Financial Accounting Standards Board (the “FASB”). |
Stock Repurchase Program | Stock Repurchase Program During the second quarter of 2019, we completed our stock repurchase program, previously announced on May 17, 2018, to repurchase up to an aggregate of $250.0 million of our outstanding common stock. On May 16, 2019, we announced that our Board of Directors had approved a new two-year stock repurchase program authorizing us to repurchase up to an aggregate of $350.0 million of our outstanding common stock (the “2019 Repurchase Program”). Under the 2019 Repurchase Program, which became effective upon the expiration of our prior stock repurchase program, we may repurchase shares from time to time in open market purchases or through privately negotiated transactions. Shares of our common stock repurchased under our repurchase programs are canceled at the time of repurchase and are classified as authorized but unissued shares of our common stock. During the three and nine months ended September 30, 2019, we repurchased 254,294 shares of our common stock for $40.6 million and 1,406,208 shares of our common stock for $205.3 million under our repurchase programs, respectively. As of September 30, 2019, we had $276.4 million remaining authorized under the 2019 Repurchase Program. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, “Leases” (Topic 842). This ASU requires a lessee to recognize a right-of-use asset and a lease liability on its balance sheet for most operating leases. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, including interim periods within those fiscal years. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which provided companies with an additional optional transition method to apply the new standard to leases in effect at the adoption date through a cumulative effect adjustment. We adopted the new lease standard on January 1, 2019 using this optional transition method. We elected the package of practical expedients referenced in ASU 2016-02, which permits companies to retain original lease identification and classification without reassessing initial direct costs for existing leases. We also elected (i) the practical expedient that exempts leases with an initial lease term of twelve months or less, (ii) the practical expedient that allows companies to select, by class of underlying asset, not to separate lease and non-lease components, and (iii) the practical expedient that allows companies to apply hindsight in determining lease terms. Our adoption of this standard resulted in the recognition of right-of-use assets and corresponding lease liabilities of $68.0 million and $69.1 million, respectively, as of January 1, 2019. There were no material impacts to our results of operations or our cash flows. Disclosures related to the amount, timing, and uncertainty of cash flows arising from our leases are included in Note 4. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Disaggregated Revenue | We have one operating segment and the composition of our revenue is summarized below: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2019 2018 2019 2018 LTL services $ 1,035,093 $ 1,041,854 $ 3,058,864 $ 2,971,399 Other services 13,364 16,379 41,041 45,352 Total revenue from operations $ 1,048,457 $ 1,058,233 $ 3,099,905 $ 3,016,751 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Number of Common Stock used in Computing Basic and Diluted Earning Per Share | The following table provides a reconciliation of the number of shares of common stock used in computing basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Weighted average shares outstanding - basic 79,880,281 81,885,262 80,474,342 82,067,519 Dilutive effect of share-based awards 109,154 90,512 114,215 98,212 Weighted average shares outstanding - diluted 79,989,435 81,975,774 80,588,557 82,165,731 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following: (In thousands) September 30, 2019 December 31, 2018 Senior notes $ 45,000 $ 45,000 Revolving credit facility — — Total long-term debt 45,000 45,000 Less: Current maturities — — Total maturities due after one year $ 45,000 $ 45,000 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Future Lease Payments for Assets under Operating Leases, as well as Reconciliation to Lease Liability | Future lease payments for assets under operating leases, as well as a reconciliation to our total lease liabilities as of September 30, 2019, are as follows: (In thousands) Lease Payments (a) Remainder of 2019 $ 3,470 2020 12,672 2021 10,066 2022 7,727 2023 6,288 Thereafter 47,776 Total lease payments $ 87,999 Less: Imputed interest (19,446 ) Total lease liabilities $ 68,553 (a) Lease payments include lease extensions that are reasonably certain to be exercised and exclude $44.8 million in lease payments for leases that have been executed but not yet commenced. |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($)shares | Sep. 30, 2019USD ($)Segmentshares | Jun. 30, 2019USD ($) | May 16, 2019USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Significant Accounting Policies [Line Items] | ||||||
Number of operating segment | Segment | 1 | |||||
Debt and capital lease obligations | $ 45,000,000 | $ 45,000,000 | $ 45,000,000 | |||
Long-term debt, fair value | 46,200,000 | 46,200,000 | $ 45,600,000 | |||
Operating lease, right-of-use asset | $ 67,400,000 | $ 67,400,000 | ||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | ||||
Operating lease, liability | $ 68,553,000 | $ 68,553,000 | ||||
Accounting Standards Update 2016-02 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Operating lease, right-of-use asset | $ 68,000,000 | |||||
Operating lease, liability | $ 69,100,000 | |||||
2018 Share Repurchase Program [Member] | Maximum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 250,000,000 | |||||
2019 Share Repurchase Program [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Stock repurchased and retired during period, shares | shares | 254,294 | 1,406,208 | ||||
Stock repurchased and retired during period, value | $ 40,600,000 | $ 205,300,000 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 276,400,000 | $ 276,400,000 | ||||
2019 Share Repurchase Program [Member] | Maximum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 350,000,000 |
Significant Accounting Polici_5
Significant Accounting Policies - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue from operations | $ 1,048,457 | $ 1,058,233 | $ 3,099,905 | $ 3,016,751 |
LTL Service Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from operations | 1,035,093 | 1,041,854 | 3,058,864 | 2,971,399 |
Other Service Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from operations | $ 13,364 | $ 16,379 | $ 41,041 | $ 45,352 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Number of Common Stock used in Computing Basic and Diluted Earning Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Weighted Average Number Of Shares Outstanding [Abstract] | ||||
Weighted average shares outstanding - basic | 79,880,281 | 81,885,262 | 80,474,342 | 82,067,519 |
Dilutive effect of share-based awards | 109,154 | 90,512 | 114,215 | 98,212 |
Weighted average shares outstanding - diluted | 79,989,435 | 81,975,774 | 80,588,557 | 82,165,731 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Senior notes | $ 45,000 | $ 45,000 |
Revolving credit facility | 0 | 0 |
Total long-term debt | 45,000 | 45,000 |
Less: Current maturities | 0 | 0 |
Total maturities due after one year | $ 45,000 | $ 45,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Senior notes | $ 45,000,000 | $ 45,000,000 |
Debt instrument, due date | Jan. 3, 2021 | |
Fixed interest rate | 4.79% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.125% | |
Letter Of Credit Fee In Percentage | 1.00% | |
Letters of Credit Outstanding, Amount | $ 49,000,000 | $ 61,500,000 |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Spread added to Rate | 0.00% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.125% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Spread added to Rate | 0.50% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | |
London Interbank Offered Rate LIBOR [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Spread added to Rate | 1.00% | |
London Interbank Offered Rate LIBOR [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Spread added to Rate | 1.50% | |
2015 Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Original borrowing capacity | $ 250,000,000 | |
Line Of Credit Facility Accordion | 100,000,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | 350,000,000 | |
Accordion Feature Exercised | 50,000,000 | |
Line of Credit Facility, Current Borrowing Capacity | 300,000,000 | |
Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 100,000,000 | |
Unsecured Senior Note Due January 3, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Scheduled principal payment | $ 45,000,000 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($)RealEstateLocation | Sep. 30, 2019USD ($)RealEstateLocation | |
Lessee Lease Description [Line Items] | ||
Number of real estate leases | RealEstate | 31 | 31 |
Number of service center locations | Location | 235 | 235 |
Lessee, operating lease, option to renew, earliest year | 2020 | |
Lessee, operating lease, option to renew, latest year | 2033 | |
Operating lease, liability, current | $ 10.7 | $ 10.7 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Operating lease, liability, noncurrent | $ 57.9 | $ 57.9 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Operating lease, right-of-use asset | $ 67.4 | $ 67.4 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent |
Operating lease, weighted average remaining lease term | 9 years 3 months 18 days | 9 years 3 months 18 days |
Operating lease, weighted average discount rate, percent | 4.00% | 4.00% |
Cash paid for amounts included in the measurement of operating leases | $ 3.5 | $ 10.7 |
Operating lease, expense | $ 3.7 | $ 11 |
Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Lessee, operating lease, renewal term | 1 year | 1 year |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Lessee, operating lease, renewal term | 10 years | 10 years |
Leases - Future Lease Payments
Leases - Future Lease Payments for Assets under Operating Leases, as well as Reconciliation to Lease Liability (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 3,470 |
2020 | 12,672 |
2021 | 10,066 |
2022 | 7,727 |
2023 | 6,288 |
Thereafter | 47,776 |
Total lease payments | 87,999 |
Less: Imputed interest | (19,446) |
Total lease liabilities | $ 68,553 |
Leases - Future Lease Payment_2
Leases - Future Lease Payments for Assets under Operating Leases, as well as Reconciliation to Lease Liability (Parenthetical) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Lessee, operating lease, lease not yet commenced, payments due | $ 44.8 |