Hub (HUBG) 10-Q 30 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 26, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	HUBG
Entity Registrant Name	HUB GROUP INC
Entity Central Index Key	940,942
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Class A Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		35,698,057
Class B Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		662,296

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 183,547	$ 109,769
Accounts receivable trade, net	411,849	401,803
Accounts receivable other	9,206	24,886
Prepaid taxes	1,358	14,937
Deferred taxes	7,712	4,816
Prepaid expenses and other current assets	15,797	14,355
TOTAL CURRENT ASSETS	629,469	570,566
Restricted investments	20,555	21,944
Property and equipment, net	350,726	338,327
Other intangibles, net	13,463	14,434
Goodwill, net	262,649	262,813
Other assets	4,099	4,043
TOTAL ASSETS	1,280,961	1,212,127
CURRENT LIABILITIES:
Accounts payable trade	273,284	256,345
Accounts payable other	25,726	21,333
Accrued payroll	21,037	16,192
Accrued other	45,920	43,523
Current portion of capital lease	2,584	2,504
Current portion of long term debt	25,929	19,619
TOTAL CURRENT LIABILITIES	394,480	359,516
Long term debt	80,690	72,460
Non-current liabilities	19,562	22,929
Long term portion of capital lease	13,974	15,937
Deferred taxes	$ 148,754	$ 140,501
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2015 and 2014
Additional paid-in capital	$ 169,979	$ 171,235
Purchase price in excess of predecessor basis, net of tax benefit of $10,306	(15,458)	(15,458)
Retained earnings	638,384	589,809
Accumulated other comprehensive loss	(177)	(77)
Treasury stock; at cost, 5,526,735 shares in 2015 and 4,977,468 shares in 2014	(169,646)	(145,144)
TOTAL STOCKHOLDERS' EQUITY	623,501	600,784
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	1,280,961	1,212,127
Class A Common Stock [Member]
STOCKHOLDERS' EQUITY:
Common stock	412	412
Class B Common Stock [Member]
STOCKHOLDERS' EQUITY:
Common stock	$ 7	$ 7

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Purchase price in excess of predecessor basis, tax benefit	$ 10,306
Treasury stock, shares	5,526,735	4,977,468
Class A Common Stock [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	97,337,700	97,337,700
Common stock, shares issued	41,224,792	41,224,792
Common stock, shares outstanding	35,698,057	36,247,324
Class B Common Stock [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	662,300	662,300
Common stock, shares issued	662,296	662,296
Common stock, shares outstanding	662,296	662,296

UNAUDITED CONSOLIDATED STATEMEN

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Revenue	$ 899,869	$ 913,386	$ 2,635,323	$ 2,655,765
Transportation costs	794,805	820,190	2,339,402	2,375,240
Gross margin	105,064	93,196	295,921	280,525
Costs and expenses:
Salaries and benefits	36,357	30,868	114,670	103,516
Agent fees and commissions	17,862	16,592	49,374	45,802
General and administrative	15,461	13,868	44,295	43,981
Depreciation and amortization	1,966	1,967	5,893	5,902
Driver settlements and related costs		10,343		10,343
Impairment of software		11,881		11,881
Total costs and expenses	71,646	85,519	214,232	221,425
Operating income	33,418	7,677	81,689	59,100
Other income (expense):
Interest expense	(757)	(361)	(2,218)	(1,166)
Interest and dividend income	22	(4)	47	21
Other, net	(952)	39	(2,095)	(191)
Total other expense	(1,687)	(326)	(4,266)	(1,336)
Income before provision for income taxes	31,731	7,351	77,423	57,764
Provision for income taxes	11,899	2,860	28,848	22,562
Net income	19,832	4,491	48,575	35,202
Other comprehensive (loss) income:
Foreign currency translation adjustments	(80)	14	(100)	47
Total comprehensive income	$ 19,752	$ 4,505	$ 48,475	$ 35,249
Basic earnings per common share	$ 0.55	$ 0.12	$ 1.35	$ 0.96
Diluted earnings per common share	$ 0.55	$ 0.12	$ 1.35	$ 0.96
Basic weighted average number of shares outstanding	35,769	36,676	35,970	36,670
Diluted weighted average number of shares outstanding	35,903	36,858	36,049	36,799

UNAUDITED CONSOLIDATED STATEME5

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net Income	$ 48,575	$ 35,202
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	26,662	21,165
Impairment of software		11,881
Deferred taxes	5,757	8,288
Compensation expense related to share-based compensation plans	5,843	6,238
Gain on sale of assets	(116)	(20)
Excess tax benefits from share based compensation	(40)
Changes in operating assets and liabilities:
Restricted investments	1,389	(875)
Accounts receivable, net	6,540	(49,102)
Prepaid taxes	13,579	(5,794)
Prepaid expenses and other current assets	(1,442)	(7,104)
Other assets	(56)	(1,572)
Accounts payable	21,308	38,281
Accrued expenses	8,337	2,581
Non-current liabilities	(3,505)	(534)
Net cash provided by operating activities	132,831	58,635
Cash flows from investing activities:
Proceeds from sale of equipment	922	420
Purchases of property and equipment	(40,951)	(75,881)
Net cash used in investing activities	(40,029)	(75,461)
Cash flows from financing activities:
Proceeds from issuance of debt	31,376	49,268
Repayments of long term debt	(16,836)	(4,198)
Stock tendered for payments of withholding taxes	(2,902)	(3,184)
Purchase of treasury stock	(28,823)
Capital lease payments	(1,883)	(1,632)
Excess tax benefits from share-based compensation	166	434
Net cash (used in) provided by financing activities	(18,902)	40,688
Effect of exchange rate changes on cash and cash equivalents	(122)	1
Net increase in cash and cash equivalents	73,778	23,863
Cash and cash equivalents beginning of the year	109,769	68,964
Cash and cash equivalents end of the year	183,547	92,827
Supplemental disclosures of cash paid for:
Interest	2,227	1,036
Income taxes	$ 6,469	$ 20,069

Interim Financial Statements

Interim Financial Statements	9 Months Ended
	Sep. 30, 2015
Quarterly Financial Information Disclosure [Abstract]
Interim Financial Statements	NOTE 1. Interim Financial Statements Our accompanying unaudited consolidated financial statements of Hub Group, Inc. (“we”, “us” or “our”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements have been omitted pursuant to those rules and regulations. However, we believe that the disclosures contained herein are adequate to make the information presented not misleading. The financial statements reflect, in our opinion, all material adjustments (which include only normal recurring adjustments) necessary to fairly present our financial position as of September 30, 2015 and results of operations for the three and nine month periods ended September 30, 2015 and 2014. These unaudited consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014. Results of operations in interim periods are not necessarily indicative of results to be expected for a full year due partially to seasonality.

Business Segments

Business Segments	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Business Segments	NOTE 2. Business Segments We report two business segments, Hub and Mode, based on the way we manage, evaluate and internally report our business activities. Hub offers comprehensive intermodal, truck brokerage and logistics services. Our employees operate the freight through a network of operating centers located in the United States, Canada and Mexico. Each operating center is strategically located in a market with a significant concentration of shipping customers and one or more railheads. Hub has full time employees located throughout the United States, Canada and Mexico. Mode has independent business owners who sell and operate the business throughout North America, as well as sales only agents. Mode also has a company managed operation and corporate offices in Dallas, TX, a temperature protected services division, Temstar, located in Oak Brook, IL and corporate offices in Memphis, TN. Mode markets and operates its freight transportation services, consisting of intermodal, truck brokerage and logistics, primarily through agents who enter into contractual arrangements with Mode. The following is a summary of operating results and certain other financial data for our business segments (in thousands): Three Months Three Months Ended September 30, 2015 Ended September 30, 2014 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Revenue $ 680,559 $ 239,375 $ (20,065 ) $ 899,869 $ 691,835 $ 245,421 $ (23,870 ) $ 913,386 Transportation costs 606,081 208,789 (20,065 ) 794,805 627,752 216,308 (23,870 ) 820,190 Gross margin 74,478 30,586 - 105,064 64,083 29,113 - 93,196 Costs and expenses: Salaries and benefits 32,917 3,440 - 36,357 27,428 3,440 - 30,868 Agent fees and commissions 14 17,848 - 17,862 15 16,577 - 16,592 General and administrative 13,659 1,802 - 15,461 12,144 1,724 - 13,868 Depreciation and amortization 1,647 319 - 1,966 1,627 340 - 1,967 Driver settlement and related costs - - - - 10,343 - - 10,343 Impairment of software - - - - 11,881 - - 11,881 Total costs and expenses 48,237 23,409 - 71,646 63,438 22,081 - 85,519 Operating income $ 26,241 $ 7,177 $ - $ 33,418 $ 645 $ 7,032 $ - $ 7,677 Capital Expenditures $ 15,817 $ 1,418 $ - $ 17,235 $ 29,287 $ 151 $ - $ 29,438 The following table summarizes our revenue by segment and business line (in thousands) for the quarter ended September 30: Three Months Three Months Ended September 30, 2015 Ended September 30, 2014 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Intermodal $ 459,921 $ 124,009 $ (18,699 ) $ 565,231 $ 460,935 $ 123,438 $ (22,626 ) $ 561,747 Truck brokerage 83,828 80,612 (696 ) 163,744 84,208 87,420 (181 ) 171,447 Logistics 136,810 34,754 (670 ) 170,894 146,692 34,563 (1,063 ) 180,192 Total revenue $ 680,559 $ 239,375 $ (20,065 ) $ 899,869 $ 691,835 $ 245,421 $ (23,870 ) $ 913,386 The Nine Months Nine Months Ended September 30, 2015 Ended September 30, 2014 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Revenue $ 2,010,453 $ 686,744 $ (61,874 ) $ 2,635,323 $ 2,027,293 $ 685,865 $ (57,393 ) $ 2,655,765 Transportation costs 1,800,628 600,648 (61,874 ) 2,339,402 1,828,014 604,619 (57,393 ) 2,375,240 Gross margin 209,825 86,096 - 295,921 199,279 81,246 - 280,525 Costs and expenses: Salaries and benefits 103,865 10,805 - 114,670 92,812 10,704 - 103,516 Agent fees and commissions 43 49,331 - 49,374 31 45,771 - 45,802 General and administrative 39,051 5,244 - 44,295 38,701 5,280 - 43,981 Depreciation and amortization 4,912 981 - 5,893 4,682 1,220 - 5,902 Driver settlement and related costs - - - - 10,343 - - 10,343 Impairment of software - - - - 11,881 - - 11,881 Total costs and expenses 147,871 66,361 - 214,232 158,450 62,975 - 221,425 Operating income $ 61,954 $ 19,735 $ - $ 81,689 $ 40,829 $ 18,271 $ - $ 59,100 Capital Expenditures $ 39,365 $ 1,586 $ - $ 40,951 $ 75,390 $ 491 $ - $ 75,881 As of September 30, 2015 As of December 31, 2014 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Total assets $ 1,108,594 $ 178,457 $ (6,090 ) $ 1,280,961 $ 1,030,722 $ 189,787 $ (8,382 ) $ 1,212,127 Goodwill 233,260 29,389 - 262,649 233,424 29,389 - 262,813 The following table summarizes our revenue by segment and business line (in thousands) for the nine months ended September 30: Nine Months Nine Months Ended September 30, 2015 Ended September 30, 2014 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Intermodal $ 1,345,776 $ 352,822 $ (59,066 ) $ 1,639,532 $ 1,352,130 $ 337,618 $ (54,865 ) $ 1,634,883 Truck brokerage 266,187 237,655 (1,278 ) 502,564 254,582 252,480 (717 ) 506,345 Logistics 398,490 96,267 (1,530 ) 493,227 420,581 95,767 (1,811 ) 514,537 Total revenue $ 2,010,453 $ 686,744 $ (61,874 ) $ 2,635,323 $ 2,027,293 $ 685,865 $ (57,393 ) $ 2,655,765

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Earnings Per Share	NOTE 3. Earnings Per Share The following is a reconciliation of our earnings per share (in thousands, except for per share data): Three Months Ended, September 30, Nine Months Ended, September 30, 2015 2014 2015 2014 Net income for basic and diluted earnings per share $ 19,832 $ 4,491 $ 48,575 $ 35,202 Weighted average shares outstanding - basic 35,769 36,676 35,970 36,670 Dilutive effect of stock options and restricted stock 134 182 79 129 Weighted average shares outstanding - diluted 35,903 36,858 36,049 36,799 Earnings per share - basic $ 0.55 $ 0.12 $ 1.35 $ 0.96 Earnings per share - diluted $ 0.55 $ 0.12 $ 1.35 $ 0.96

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurement	NOTE 4. Fair Value Measurement The carrying value of cash and cash equivalents, accounts receivable and accounts payable and long term debt approximated fair value as of September 30, 2015 and December 31, 2014. We consider as cash equivalents all highly liquid instruments with an original maturity of three months or less. As of September 30, 2015 and December 31, 2014, our cash and temporary investments were with high quality financial institutions in Demand Deposit Accounts and Savings Accounts. Restricted investments, as of September 30, 2015 of $20.6 million and December 31, 2014 of $21.9 million, included mutual funds which are reported at fair value. Our assets and liabilities measured at fair value are based on valuation techniques which consider prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. These valuation methods are based on either quoted market prices (Level 1) or inputs, other than quoted prices in active markets, that are observable either directly or indirectly (Level 2). Cash and cash equivalents, accounts receivable and accounts payable are defined as “Level 1”, while long term debt is defined as “Level 2” of the fair value hierarchy in the Fair Value Measurements and Disclosures Topic of the Codification. .

Long-Term Debt and Financing Ar

Long-Term Debt and Financing Arrangements	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Long-Term Debt and Financing Arrangements	NOTE 5. Long-Term Debt and Financing Arrangements We have standby letters of credit that expire at various dates in 2016. As of September 30, 2015, our letters of credit were $7.1 million. Our unused and available borrowings under our bank revolving line of credit were $42.9 million as of September 30, 2015 and $43.9 million as of December 31, 2014. We were in compliance with our debt covenants as of September 30, 2015. We have entered into various Equipment Notes (“Notes”) for the purchase of tractors and containers. The Notes are secured by the underlying equipment financed in the agreements. Period Ended September 30, December 31, 2015 2014 Secured Equipment Notes due in September 2020 with monthly principal and interest payments of $0.2 million commencing in October 2015; interest is paid monthly at a fixed annual rate of 1.84% $ 12,828 $ - Secured Equipment Notes due in June 2020 with monthly principal and interest payments of $0.1 million commencing in July 2015; interest is paid monthly at a fixed annual rate of 2.14% 6,733 - Secured Equipment Notes due in March 2020 with monthly principal and interest payments of $0.04 million commencing in April 2015; interest is paid monthly at a fixed annual rate of 2.14% 2,110 - Secured Equipment Notes due in January 2020 with monthly principal and interest payments of $0.2 million commencing in February 2015; interest is paid monthly at a fixed annual rate between 1.72% and 2.26% 7,975 - Secured Equipment Notes due in December 2019 with monthly principal and interest payments of $0.2 million commencing in January 2015; interest is paid monthly at a fixed annual rate of 2.24% 11,473 13,387 Secured Equipment Notes due in November 2019 with monthly principal and interest payments of $0.5 million commencing in December 2014; interest is paid monthly at a fixed annual rate of 2.05% 23,891 28,429 Secured Equipment Notes due in September 2019 with monthly principal and interest payments of $0.4 million commencing in September 2014; interest is paid monthly at a fixed annual rate of 2.15% 19,330 22,772 Secured Equipment Notes due in February 2019 with monthly principal and interest payments of $0.4 million commencing in January 2014; interest is paid monthly at a fixed annual rate between 1.87% and 1.93% 17,218 21,016 Secured Equipment Notes due in June 2018 with quarterly principal and interest payments of $0.5 million commencing in August 2013; interest is paid quarterly at a fixed annual rate between 1.9% and 2.0% 5,061 6,475 106,619 92,079 Less current portion (25,929 ) (19,619 ) Total long-term debt $ 80,690 $ 72,460

Guarantees

Guarantees	9 Months Ended
	Sep. 30, 2015
Guarantees [Abstract]
Guarantees	NOTE 6. Guarantees As a recruiting tool for our drivers, we are guaranteeing certain drivers’ lease payments for tractors. The guarantees expire at various dates through 2020. The potential maximum exposure under these lease guarantees was approximately $16.0 million and $27.2 million as of September 30, 2015 and December 31, 2014, respectively. The potential maximum exposure represents the amount of the remaining lease payments on all outstanding guaranteed leases as of September 30, 2015 and December 31, 2014. However, upon default, we have the option to purchase the tractors. We could then sell the tractors and use the proceeds to recover all or a portion of the amounts paid under the guarantees. Alternatively, we can contract with another owner-operator who would assume the lease. There were no material defaults during the quarter ended September 30, 2015 or the year ended December 31, 2014 and no potential material defaults. We had a liability of approximately $0.2 million as of September 30, 2015 and $0.3 million as of December 31, 2014, representing the fair value for estimated defaults of the guarantees, based on a discounted cash-flow analysis which is included in current and non-current liabilities in our Consolidated Balance Sheets. We are amortizing the amounts over the remaining lives of the respective guarantees.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 7. Commitments and Contingencies In March 2015, we entered into an equipment purchase contract for the acquisition of 300 Freightliner tractors. The total purchase price of these tractors, including the warranty, is approximately $43.4 million. As of September 30, 2015, we have received 156 tractors, 142 of which we have financed with secured fixed rate debt as further discussed in Note 5 of the consolidated financial statements. We expect to take delivery of the remaining tractors by the end of the year. In July 2015, we entered into an equipment purchase contract for the acquisition of 1,000 53’ domestic containers. The total purchase price of these containers is $10.5 million. As of September 30, 2015, we have received 175 containers. We expect to take delivery of the remaining containers by the end of November.

Legal Matters

Legal Matters	9 Months Ended
	Sep. 30, 2015
Commitments And Contingencies Disclosure [Abstract]
Legal Matters	NOTE 8. Legal Matters Robles On January 25, 2013, a complaint was filed in the U.S. District Court for the Eastern District of California (Sacramento Division) by Salvador Robles against our subsidiary, Comtrak Logistics, Inc., now known as Hub Group Trucking, Inc. Mr. Robles drove a truck for Hub Group Trucking in California, first as an independent contractor and then as an employee. The action brought on behalf of a class comprised of present and former California-based truck drivers for Hub Group Trucking who were classified as independent contractors, from January 2009 to the present. The complaint alleges Hub Group Trucking has misclassified such drivers as independent contractors and that such drivers were employees. The complaint asserts various violations of the California Labor Code and claims that Hub Group Trucking has engaged in unfair competition practices. The complaint seeks, among other things, declaratory and injunctive relief, compensatory damages and attorney’s fees. In May 2013, the complaint was amended to add similar claims based on Mr. Robles’ status as an employed company driver. These additional claims are only on behalf of Mr. Robles and not a putative class. In August 2013, the district court stayed proceedings in the case pending decisions by the Court of Appeals for the Ninth Circuit to decide whether the claims in two cases raising some similar claims should be dismissed on federal preemption grounds. In July 2014, the Court of Appeals ruled that the claims in those cases were not preempted. The Company believes that the California independent contractor truck drivers were properly classified as independent contractors at all times. Nevertheless, because lawsuits are expensive, time-consuming and could interrupt our business operations, Hub Group Trucking decided to make settlement offers to individual drivers with respect to the claims alleged in this lawsuit, without admitting liability. As of September 30, 2015, 93% of the California drivers have accepted the settlement offers. In late 2014, Hub Group Trucking decided to convert its model from independent contractors to employee drivers in California. On April 3, 2015, the Robles case was transferred to the U.S. District Court for the Western District of Tennessee (Western Division) in Memphis. In May 2015, the plaintiffs in the Robles case filed a Second Amended Complaint (“SAC”) which names 334 current and former Hub Group Trucking drivers as “interested putative class members.” In addition to reasserting their existing claims, the SAC includes claims post-conversion, added two new plaintiffs and seeks a judicial declaration that the settlement agreements are unenforceable. In June 2015, Hub Group Trucking filed a motion to dismiss the SAC. Private Attorneys General Act Action On August 5, 2015, the Plaintiffs’ law firm in the Robles case filed a lawsuit in state court in San Bernardino County, California on behalf of 63 named Plaintiffs against Hub Group Trucking and five Hub employees. The lawsuit alleges claims similar to those being made in Robles and seeks monetary penalties under the Private Attorneys General Act. Of the 63 named Plaintiffs, at least 58 of them previously accepted the settlement offers referenced above. Lubinski On September 12, 2014, a complaint was filed in the U.S. District Court for the Northern District of Illinois (Eastern Division) by Christian Lubinski against Hub Group Trucking. The action was brought on behalf of a class comprised of present and former owner-operators providing delivery services in Illinois for Hub Group Trucking. The complaint alleged Hub Group Trucking misclassified such drivers as independent contractors and that such drivers are employees. The complaint alleged that Hub Group Trucking made illegal deductions from the drivers’ pay and failed to properly compensate the drivers for all hours worked, reimburse business expenses, pay employment taxes, and provide workers’ compensation and other employment benefits. The complaint asserted various violations of the Illinois Wage Payment and Collections Act and claims that Hub Group Trucking was unjustly enriched. The complaint sought, among other things, monetary damages for the relevant statutory period and attorneys’ fees. On October 24, 2014, the Lubinski case was transferred to the U.S. District Court for the Western District of Tennessee (Western Division), in Memphis. On September 22, 2015, the court granted Hub Group Trucking’s motion to dismiss Lubinski’s Illinois law claims with prejudice based on the contractual choice of law provision providing that Tennessee law governs. The court denied as moot Hub Group Trucking’s motion to dismiss based on federal preemption. On October 2, 2015, Lubinski appealed this order to the United States Court of Appeals for the Sixth Circuit in Cincinnati. We cannot reasonably estimate at this time the possible loss or range of loss, if any, that may arise from the remaining unresolved claims in the above mentioned lawsuits. We are a party to other litigation incident to our business, including claims for personal injury and/or property damage, bankruptcy preference claims, and claims regarding freight lost or damaged in transit, improperly shipped or improperly billed. Some of the lawsuits to which we are party are covered by insurance and are being defended by our insurance carriers. Some of the lawsuits are not covered by insurance and we defend those ourselves. We do not believe that the outcome of this litigation will have a materially adverse effect on our financial position or results of operations.

New Pronouncements

New Pronouncements	9 Months Ended
	Sep. 30, 2015
Accounting Changes And Error Corrections [Abstract]
New Pronouncements	NOTE 9. New Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Update No. 2014-09—Revenue from Contracts with Customers (Topic 606). This Standard provides guidance on how to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public organizations, the guidance in the update is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The update provides two transition methods to the new guidance: a retrospective approach and a modified retrospective approach. Early application is permitted for annual reporting periods beginning after December 15, 2016. We plan to adopt this standard as required. We are currently evaluating the transition method and effect this update will have on our consolidated financial statements.

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Summary of Operating Results	The following is a summary of operating results and certain other financial data for our business segments (in thousands): Three Months Three Months Ended September 30, 2015 Ended September 30, 2014 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Revenue $ 680,559 $ 239,375 $ (20,065 ) $ 899,869 $ 691,835 $ 245,421 $ (23,870 ) $ 913,386 Transportation costs 606,081 208,789 (20,065 ) 794,805 627,752 216,308 (23,870 ) 820,190 Gross margin 74,478 30,586 - 105,064 64,083 29,113 - 93,196 Costs and expenses: Salaries and benefits 32,917 3,440 - 36,357 27,428 3,440 - 30,868 Agent fees and commissions 14 17,848 - 17,862 15 16,577 - 16,592 General and administrative 13,659 1,802 - 15,461 12,144 1,724 - 13,868 Depreciation and amortization 1,647 319 - 1,966 1,627 340 - 1,967 Driver settlement and related costs - - - - 10,343 - - 10,343 Impairment of software - - - - 11,881 - - 11,881 Total costs and expenses 48,237 23,409 - 71,646 63,438 22,081 - 85,519 Operating income $ 26,241 $ 7,177 $ - $ 33,418 $ 645 $ 7,032 $ - $ 7,677 Capital Expenditures $ 15,817 $ 1,418 $ - $ 17,235 $ 29,287 $ 151 $ - $ 29,438 The Nine Months Nine Months Ended September 30, 2015 Ended September 30, 2014 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Revenue $ 2,010,453 $ 686,744 $ (61,874 ) $ 2,635,323 $ 2,027,293 $ 685,865 $ (57,393 ) $ 2,655,765 Transportation costs 1,800,628 600,648 (61,874 ) 2,339,402 1,828,014 604,619 (57,393 ) 2,375,240 Gross margin 209,825 86,096 - 295,921 199,279 81,246 - 280,525 Costs and expenses: Salaries and benefits 103,865 10,805 - 114,670 92,812 10,704 - 103,516 Agent fees and commissions 43 49,331 - 49,374 31 45,771 - 45,802 General and administrative 39,051 5,244 - 44,295 38,701 5,280 - 43,981 Depreciation and amortization 4,912 981 - 5,893 4,682 1,220 - 5,902 Driver settlement and related costs - - - - 10,343 - - 10,343 Impairment of software - - - - 11,881 - - 11,881 Total costs and expenses 147,871 66,361 - 214,232 158,450 62,975 - 221,425 Operating income $ 61,954 $ 19,735 $ - $ 81,689 $ 40,829 $ 18,271 $ - $ 59,100 Capital Expenditures $ 39,365 $ 1,586 $ - $ 40,951 $ 75,390 $ 491 $ - $ 75,881
Summary of Revenue by Segment and Business Line	The following table summarizes our revenue by segment and business line (in thousands) for the quarter ended September 30: Three Months Three Months Ended September 30, 2015 Ended September 30, 2014 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Intermodal $ 459,921 $ 124,009 $ (18,699 ) $ 565,231 $ 460,935 $ 123,438 $ (22,626 ) $ 561,747 Truck brokerage 83,828 80,612 (696 ) 163,744 84,208 87,420 (181 ) 171,447 Logistics 136,810 34,754 (670 ) 170,894 146,692 34,563 (1,063 ) 180,192 Total revenue $ 680,559 $ 239,375 $ (20,065 ) $ 899,869 $ 691,835 $ 245,421 $ (23,870 ) $ 913,386 The following table summarizes our revenue by segment and business line (in thousands) for the nine months ended September 30: Nine Months Nine Months Ended September 30, 2015 Ended September 30, 2014 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Intermodal $ 1,345,776 $ 352,822 $ (59,066 ) $ 1,639,532 $ 1,352,130 $ 337,618 $ (54,865 ) $ 1,634,883 Truck brokerage 266,187 237,655 (1,278 ) 502,564 254,582 252,480 (717 ) 506,345 Logistics 398,490 96,267 (1,530 ) 493,227 420,581 95,767 (1,811 ) 514,537 Total revenue $ 2,010,453 $ 686,744 $ (61,874 ) $ 2,635,323 $ 2,027,293 $ 685,865 $ (57,393 ) $ 2,655,765
Schedule of Assets	As of September 30, 2015 As of December 31, 2014 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Total assets $ 1,108,594 $ 178,457 $ (6,090 ) $ 1,280,961 $ 1,030,722 $ 189,787 $ (8,382 ) $ 1,212,127 Goodwill 233,260 29,389 - 262,649 233,424 29,389 - 262,813

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Reconciliation of Earnings Per Share	The following is a reconciliation of our earnings per share (in thousands, except for per share data): Three Months Ended, September 30, Nine Months Ended, September 30, 2015 2014 2015 2014 Net income for basic and diluted earnings per share $ 19,832 $ 4,491 $ 48,575 $ 35,202 Weighted average shares outstanding - basic 35,769 36,676 35,970 36,670 Dilutive effect of stock options and restricted stock 134 182 79 129 Weighted average shares outstanding - diluted 35,903 36,858 36,049 36,799 Earnings per share - basic $ 0.55 $ 0.12 $ 1.35 $ 0.96 Earnings per share - diluted $ 0.55 $ 0.12 $ 1.35 $ 0.96

Long-Term Debt and Financing 17

Long-Term Debt and Financing Arrangements (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Schedule of Outstanding Debt	Period Ended September 30, December 31, 2015 2014 Secured Equipment Notes due in September 2020 with monthly principal and interest payments of $0.2 million commencing in October 2015; interest is paid monthly at a fixed annual rate of 1.84% $ 12,828 $ - Secured Equipment Notes due in June 2020 with monthly principal and interest payments of $0.1 million commencing in July 2015; interest is paid monthly at a fixed annual rate of 2.14% 6,733 - Secured Equipment Notes due in March 2020 with monthly principal and interest payments of $0.04 million commencing in April 2015; interest is paid monthly at a fixed annual rate of 2.14% 2,110 - Secured Equipment Notes due in January 2020 with monthly principal and interest payments of $0.2 million commencing in February 2015; interest is paid monthly at a fixed annual rate between 1.72% and 2.26% 7,975 - Secured Equipment Notes due in December 2019 with monthly principal and interest payments of $0.2 million commencing in January 2015; interest is paid monthly at a fixed annual rate of 2.24% 11,473 13,387 Secured Equipment Notes due in November 2019 with monthly principal and interest payments of $0.5 million commencing in December 2014; interest is paid monthly at a fixed annual rate of 2.05% 23,891 28,429 Secured Equipment Notes due in September 2019 with monthly principal and interest payments of $0.4 million commencing in September 2014; interest is paid monthly at a fixed annual rate of 2.15% 19,330 22,772 Secured Equipment Notes due in February 2019 with monthly principal and interest payments of $0.4 million commencing in January 2014; interest is paid monthly at a fixed annual rate between 1.87% and 1.93% 17,218 21,016 Secured Equipment Notes due in June 2018 with quarterly principal and interest payments of $0.5 million commencing in August 2013; interest is paid quarterly at a fixed annual rate between 1.9% and 2.0% 5,061 6,475 106,619 92,079 Less current portion (25,929 ) (19,619 ) Total long-term debt $ 80,690 $ 72,460

Business Segments - Additional

Business Segments - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015Segment
Segment Reporting [Abstract]
Reporting business segments	2
Number of railheads	one or more

Summary of Operating Results (D

Summary of Operating Results (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Revenue	$ 899,869	$ 913,386	$ 2,635,323	$ 2,655,765
Transportation costs	794,805	820,190	2,339,402	2,375,240
Gross margin	105,064	93,196	295,921	280,525
Costs and expenses:
Salaries and benefits	36,357	30,868	114,670	103,516
Agent fees and commissions	17,862	16,592	49,374	45,802
General and administrative	15,461	13,868	44,295	43,981
Depreciation and amortization	1,966	1,967	5,893	5,902
Driver settlements and related costs		10,343		10,343
Impairment of software		11,881		11,881
Total costs and expenses	71,646	85,519	214,232	221,425
Operating income	33,418	7,677	81,689	59,100
Capital Expenditures	17,235	29,438	40,951	75,881
Operating Segments [Member] | Hub [Member]
Segment Reporting Information [Line Items]
Revenue	680,559	691,835	2,010,453	2,027,293
Transportation costs	606,081	627,752	1,800,628	1,828,014
Gross margin	74,478	64,083	209,825	199,279
Costs and expenses:
Salaries and benefits	32,917	27,428	103,865	92,812
Agent fees and commissions	14	15	43	31
General and administrative	13,659	12,144	39,051	38,701
Depreciation and amortization	1,647	1,627	4,912	4,682
Driver settlements and related costs		10,343		10,343
Impairment of software		11,881		11,881
Total costs and expenses	48,237	63,438	147,871	158,450
Operating income	26,241	645	61,954	40,829
Capital Expenditures	15,817	29,287	39,365	75,390
Operating Segments [Member] | Mode [Member]
Segment Reporting Information [Line Items]
Revenue	239,375	245,421	686,744	685,865
Transportation costs	208,789	216,308	600,648	604,619
Gross margin	30,586	29,113	86,096	81,246
Costs and expenses:
Salaries and benefits	3,440	3,440	10,805	10,704
Agent fees and commissions	17,848	16,577	49,331	45,771
General and administrative	1,802	1,724	5,244	5,280
Depreciation and amortization	319	340	981	1,220
Total costs and expenses	23,409	22,081	66,361	62,975
Operating income	7,177	7,032	19,735	18,271
Capital Expenditures	1,418	151	1,586	491
Intersegment Elims [Member]
Segment Reporting Information [Line Items]
Revenue	(20,065)	(23,870)	(61,874)	(57,393)
Transportation costs	$ (20,065)	$ (23,870)	$ (61,874)	$ (57,393)

Summary of Revenue by Segment a

Summary of Revenue by Segment and Business Line (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Revenue	$ 899,869	$ 913,386	$ 2,635,323	$ 2,655,765
Intermodal [Member]
Segment Reporting Information [Line Items]
Revenue	565,231	561,747	1,639,532	1,634,883
Truck brokerage [Member]
Segment Reporting Information [Line Items]
Revenue	163,744	171,447	502,564	506,345
Logistics [Member]
Segment Reporting Information [Line Items]
Revenue	170,894	180,192	493,227	514,537
Operating Segments [Member] | Hub [Member]
Segment Reporting Information [Line Items]
Revenue	680,559	691,835	2,010,453	2,027,293
Operating Segments [Member] | Hub [Member] | Intermodal [Member]
Segment Reporting Information [Line Items]
Revenue	459,921	460,935	1,345,776	1,352,130
Operating Segments [Member] | Hub [Member] | Truck brokerage [Member]
Segment Reporting Information [Line Items]
Revenue	83,828	84,208	266,187	254,582
Operating Segments [Member] | Hub [Member] | Logistics [Member]
Segment Reporting Information [Line Items]
Revenue	136,810	146,692	398,490	420,581
Operating Segments [Member] | Mode [Member]
Segment Reporting Information [Line Items]
Revenue	239,375	245,421	686,744	685,865
Operating Segments [Member] | Mode [Member] | Intermodal [Member]
Segment Reporting Information [Line Items]
Revenue	124,009	123,438	352,822	337,618
Operating Segments [Member] | Mode [Member] | Truck brokerage [Member]
Segment Reporting Information [Line Items]
Revenue	80,612	87,420	237,655	252,480
Operating Segments [Member] | Mode [Member] | Logistics [Member]
Segment Reporting Information [Line Items]
Revenue	34,754	34,563	96,267	95,767
Intersegment Elims [Member]
Segment Reporting Information [Line Items]
Revenue	(20,065)	(23,870)	(61,874)	(57,393)
Intersegment Elims [Member] | Intermodal [Member]
Segment Reporting Information [Line Items]
Revenue	(18,699)	(22,626)	(59,066)	(54,865)
Intersegment Elims [Member] | Truck brokerage [Member]
Segment Reporting Information [Line Items]
Revenue	(696)	(181)	(1,278)	(717)
Intersegment Elims [Member] | Logistics [Member]
Segment Reporting Information [Line Items]
Revenue	$ (670)	$ (1,063)	$ (1,530)	$ (1,811)

Schedule of Assets (Detail)

Schedule of Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Total assets	$ 1,280,961	$ 1,212,127
Goodwill	262,649	262,813
Operating Segments [Member] | Hub [Member]
Segment Reporting Information [Line Items]
Total assets	1,108,594	1,030,722
Goodwill	233,260	233,424
Operating Segments [Member] | Mode [Member]
Segment Reporting Information [Line Items]
Total assets	178,457	189,787
Goodwill	29,389	29,389
Intersegment Elims [Member]
Segment Reporting Information [Line Items]
Total assets	$ (6,090)	$ (8,382)

Reconciliation of Earnings Per

Reconciliation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net income for basic and diluted earnings per share	$ 19,832	$ 4,491	$ 48,575	$ 35,202
Weighted average shares outstanding - basic	35,769	36,676	35,970	36,670
Dilutive effect of stock options and restricted stock	134	182	79	129
Weighted average shares outstanding - diluted	35,903	36,858	36,049	36,799
Earnings per share - basic	$ 0.55	$ 0.12	$ 1.35	$ 0.96
Earnings per share - diluted	$ 0.55	$ 0.12	$ 1.35	$ 0.96

Fair Value Measurement - Additi

Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Restricted investments	$ 20.6	$ 21.9

Long-Term Debt and Financing 24

Long-Term Debt and Financing Arrangements - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Standby Letters of Credit [Member]
Line Of Credit Facility [Line Items]
Outstanding letters of credit	$ 7.1
Letters of credit expiration, years	2,016
Revolving Line of Credit Facility [Member] | Bank Revolving Line of Credit [Member]
Line Of Credit Facility [Line Items]
Unused and available borrowings under bank revolving line of credit	$ 42.9	$ 43.9

Schedule of Outstanding Debt (D

Schedule of Outstanding Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Secured long-term debt	$ 106,619	$ 92,079
Less current portion	(25,929)	(19,619)
Total long-term debt	80,690	72,460
Secured Equipment Notes due in September 2020 [Member]
Debt Instrument [Line Items]
Equipment note	12,828
Secured Equipment Notes due in June 2020 [Member]
Debt Instrument [Line Items]
Equipment note	6,733
Secured Equipment Notes due in March 2020 [Member]
Debt Instrument [Line Items]
Equipment note	2,110
Secured Equipment Notes due in January 2020 [Member]
Debt Instrument [Line Items]
Equipment note	7,975
Secured Equipment Notes due in December 2019 [Member]
Debt Instrument [Line Items]
Equipment note	11,473	13,387
Secured Equipment Notes due in November 2019 [Member]
Debt Instrument [Line Items]
Equipment note	23,891	28,429
Secured Equipment Notes due in September 2019 [Member]
Debt Instrument [Line Items]
Equipment note	19,330	22,772
Secured Equipment Notes due in February 2019 [Member]
Debt Instrument [Line Items]
Equipment note	17,218	21,016
Secured Equipment Notes due in June 2018 [Member]
Debt Instrument [Line Items]
Equipment note	$ 5,061	$ 6,475

Schedule of Outstanding Debt (P

Schedule of Outstanding Debt (Parenthetical) (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Secured Equipment Notes due in September 2020 [Member]
Debt Instrument [Line Items]
Equipment notes due	Sep. 30, 2020
Monthly payments	$ 200
Equipment notes, date of first required payment	Oct. 31, 2015
Interest rate secured debt	1.84%
Payment Frequency	Monthly
Secured Equipment Notes due in June 2020 [Member]
Debt Instrument [Line Items]
Equipment notes due	Jun. 30, 2020
Monthly payments	$ 100
Equipment notes, date of first required payment	Jul. 31, 2015
Interest rate secured debt	2.14%
Payment Frequency	Monthly
Secured Equipment Notes due in March 2020 [Member]
Debt Instrument [Line Items]
Equipment notes due	Mar. 31, 2020
Monthly payments	$ 40
Equipment notes, date of first required payment	Apr. 30, 2015
Interest rate secured debt	2.14%
Payment Frequency	Monthly
Secured Equipment Notes due in January 2020 [Member]
Debt Instrument [Line Items]
Equipment notes due	Jan. 31, 2020
Monthly payments	$ 200
Equipment notes, date of first required payment	Feb. 28, 2015
Payment Frequency	Monthly
Lower interest rate paid at a fixed rate	1.72%
Upper interest rate paid at a fixed rate	2.26%
Secured Equipment Notes due in December 2019 [Member]
Debt Instrument [Line Items]
Equipment notes due	Dec. 31, 2019	Dec. 31, 2019
Monthly payments	$ 200	$ 200
Equipment notes, date of first required payment	Jan. 31, 2015	Jan. 31, 2015
Interest rate secured debt	2.24%	2.24%
Payment Frequency	Monthly
Secured Equipment Notes due in November 2019 [Member]
Debt Instrument [Line Items]
Equipment notes due	Nov. 30, 2019	Nov. 30, 2019
Monthly payments	$ 500	$ 500
Equipment notes, date of first required payment	Dec. 31, 2014	Dec. 31, 2014
Interest rate secured debt	2.05%	2.05%
Payment Frequency	Monthly
Secured Equipment Notes due in September 2019 [Member]
Debt Instrument [Line Items]
Equipment notes due	Sep. 30, 2019	Sep. 30, 2019
Monthly payments	$ 400	$ 400
Equipment notes, date of first required payment	Sep. 30, 2014	Sep. 30, 2014
Interest rate secured debt	2.15%	2.15%
Payment Frequency	Monthly
Secured Equipment Notes due in February 2019 [Member]
Debt Instrument [Line Items]
Equipment notes due	Feb. 28, 2019	Feb. 28, 2019
Monthly payments	$ 400	$ 400
Equipment notes, date of first required payment	Jan. 31, 2014	Jan. 31, 2014
Payment Frequency	Monthly
Lower interest rate paid at a fixed rate	1.87%	1.87%
Upper interest rate paid at a fixed rate	1.93%	1.93%
Secured Equipment Notes due in June 2018 [Member]
Debt Instrument [Line Items]
Equipment notes due	Jun. 30, 2018	Jun. 30, 2018
Monthly payments	$ 500	$ 500
Equipment notes, date of first required payment	Aug. 31, 2013	Aug. 31, 2013
Payment Frequency	Quarterly
Lower interest rate paid at a fixed rate	1.90%	1.90%
Upper interest rate paid at a fixed rate	2.00%	2.00%

Guarantees - Additional Informa

Guarantees - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Guarantees [Abstract]
Expiration dates of guarantees	2,020
Potential maximum exposure under these lease guarantees	$ 16	$ 27.2
Liability representing fair value for estimated defaults of guarantees, based on discounted cash-flow analysis	$ 0.2	$ 0.3

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Millions	1 Months Ended
	Jul. 31, 2015USD ($)Container	Mar. 31, 2015USD ($)Vehicle	Sep. 30, 2015VehicleContainer
Loss Contingencies [Line Items]
Purchase contract units, tractors		300
Total costs of purchasing tractors | $		$ 43.4
Number of tractors received			156
Purchase contract units, containers | Container	1,000
Cost of purchasing containers | $	$ 10.5
Number of containers received | Container			175
Secured Fixed Rate Debt [Member]
Loss Contingencies [Line Items]
Number of tractors received			142

Legal Matters - Additional Info

Legal Matters - Additional Information (Detail) - Robles Lawsuits [Member]	Aug. 05, 2015PlaintiffEmployee	May. 31, 2015Plaintiff	Sep. 30, 2015
Loss Contingencies [Line Items]
Percentage of California drivers who accepted settlement offers			93.00%
Number of plaintiffs		2
Number of plaintiffs against hub group trucking	63
Number of employees filed lawsuit | Employee	5
Number of claims accepted settlement offers	58