Hub (HUBG) 10-Q 29 Jul 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 26, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
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		33,562,272
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	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 164,150	$ 207,749
Accounts receivable trade, net	399,207	379,987
Accounts receivable other	3,917	10,344
Prepaid taxes	3,339	362
Deferred taxes		8,412
Prepaid expenses and other current assets	15,071	17,756
TOTAL CURRENT ASSETS	585,684	624,610
Restricted investments	19,991	21,108
Property and equipment, net	381,532	374,847
Other intangibles, net	12,491	13,139
Goodwill, net	262,485	262,594
Other assets	4,287	4,848
TOTAL ASSETS	1,266,470	1,301,146
CURRENT LIABILITIES:
Accounts payable trade	251,815	230,432
Accounts payable other	24,841	21,495
Accrued payroll	22,883	33,020
Accrued other	38,005	38,733
Current portion of capital lease	2,648	2,608
Current portion of long term debt	35,430	32,409
TOTAL CURRENT LIABILITIES	375,622	358,697
Long term debt	94,968	100,895
Non-current liabilities	21,536	20,233
Long term portion of capital lease	11,962	13,299
Deferred taxes	159,319	160,182
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2016 and 2015
Additional paid-in capital	169,229	174,285
Purchase price in excess of predecessor basis, net of tax benefit of $10,306	(15,458)	(15,458)
Retained earnings	699,395	660,758
Accumulated other comprehensive loss	(231)	(178)
Treasury stock; at cost, 7,656,930 shares in 2016 and 5,590,831 shares in 2015	(250,291)	(171,986)
TOTAL STOCKHOLDERS' EQUITY	603,063	647,840
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	1,266,470	1,301,146
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	Jun. 30, 2016	Dec. 31, 2015
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	7,656,930	5,590,831
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	33,567,862	35,633,961
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		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Revenue	$ 855,557	$ 899,513	$ 1,661,416	$ 1,735,454
Transportation costs	741,067	797,784	1,438,539	1,544,597
Gross margin	114,490	101,729	222,877	190,857
Costs and expenses:
Salaries and benefits	43,602	38,837	87,465	78,313
Agent fees and commissions	18,360	16,686	35,262	31,512
General and administrative	16,083	14,763	32,727	28,834
Depreciation and amortization	2,148	1,967	4,283	3,927
Total costs and expenses	80,193	72,253	159,737	142,586
Operating income	34,297	29,476	63,140	48,271
Other income (expense):
Interest expense	(857)	(720)	(1,767)	(1,461)
Interest and dividend income	120	19	181	25
Other, net	216	261	1,152	(1,143)
Total other expense	(521)	(440)	(434)	(2,579)
Income before provision for income taxes	33,776	29,036	62,706	45,692
Provision for income taxes	13,105	10,569	24,069	16,949
Net income	20,671	18,467	38,637	28,743
Other comprehensive income:
Foreign currency translation adjustments	(54)	(23)	(53)	(20)
Total comprehensive income	$ 20,617	$ 18,444	$ 38,584	$ 28,723
Basic earnings per common share	$ 0.61	$ 0.51	$ 1.12	$ 0.80
Diluted earnings per common share	$ 0.61	$ 0.51	$ 1.12	$ 0.80
Basic weighted average number of shares outstanding	33,944	35,986	34,541	36,071
Diluted weighted average number of shares outstanding	34,027	36,075	34,575	36,122

UNAUDITED CONSOLIDATED STATEME5

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net Income	$ 38,637	$ 28,743
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	21,426	17,526
Deferred taxes	7,777	2,489
Compensation expense related to share-based compensation plans	4,245	4,110
Gain on sale of assets	(255)	(60)
Excess tax benefits from share based compensation	132	(33)
Changes in operating assets and liabilities:
Restricted investments	1,117	(295)
Accounts receivable, net	(12,826)	(11,407)
Prepaid taxes	(2,977)	13,284
Prepaid expenses and other current assets	2,685	3,030
Other assets	561	216
Accounts payable	24,740	15,132
Accrued expenses	(14,031)	8,943
Non-current liabilities	1,211	(1,226)
Net cash provided by operating activities	72,442	80,452
Cash flows from investing activities:
Proceeds from sale of equipment	1,148	136
Purchases of property and equipment	(25,217)	(23,716)
Net cash used in investing activities	(24,069)	(23,580)
Cash flows from financing activities:
Proceeds from issuance of debt	13,274	18,548
Repayments of long term debt	(16,180)	(10,938)
Stock tendered for payments of withholding taxes	(2,379)	(2,877)
Purchase of treasury stock	(85,000)	(13,419)
Capital lease payments	(1,297)	(1,243)
Excess tax benefits from share-based compensation	(359)	89
Net cash used in financing activities	(91,941)	(9,840)
Effect of exchange rate changes on cash and cash equivalents	(31)	(21)
Net (decrease) increase in cash and cash equivalents	(43,599)	47,011
Cash and cash equivalents beginning of the period	207,749	109,769
Cash and cash equivalents end of the period	164,150	156,780
Supplemental disclosures of cash paid for:
Interest	1,762	1,533
Income taxes	$ 22,399	$ 618

Interim Financial Statements

Interim Financial Statements	6 Months Ended
	Jun. 30, 2016
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 June 30, 2016 and results of operations for the three and six months ended June 30, 2016 and 2015. 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, 2015. 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	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Business Segments	NOTE 2. Business Segments We report two distinct business segments. The first segment is Mode, which includes the Mode Transportation, LLC (“Mode LLC”) business we acquired on April 1, 2011. The second segment is Hub, which is all business other than Mode. 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 LLC has Independent Business Owners (“IBOs”) who sell and operate the business throughout North America, as well as sales only agents. Mode LLC 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 LLC markets and operates its freight transportation services, consisting of intermodal, truck brokerage and logistics, primarily through agents who enter into contractual arrangements with Mode LLC. The following is a summary of operating results and certain other financial data for our business segments (in thousands): Three Months Three Months Ended June 30, 2016 Ended June 30, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Revenue $ 648,523 $ 231,924 $ (24,890 ) $ 855,557 $ 686,451 $ 233,847 $ (20,785 ) $ 899,513 Transportation costs 565,448 200,509 (24,890 ) 741,067 614,289 204,280 (20,785 ) 797,784 Gross margin 83,075 31,415 - 114,490 72,162 29,567 - 101,729 Costs and expenses: Salaries and benefits 39,787 3,815 - 43,602 35,288 3,549 - 38,837 Agent fees and commissions 13 18,347 - 18,360 14 16,672 - 16,686 General and administrative 14,226 1,857 - 16,083 13,194 1,569 - 14,763 Depreciation and amortization 1,830 318 - 2,148 1,647 320 - 1,967 Total costs and expenses 55,856 24,337 - 80,193 50,143 22,110 - 72,253 Operating income $ 27,219 $ 7,078 $ - $ 34,297 $ 22,019 $ 7,457 $ - $ 29,476 Capital Expenditures $ 20,314 $ 10 $ - $ 20,324 $ 8,550 $ 109 $ - $ 8,659 The following tables summarize our revenue by segment and business line (in thousands) for the quarter ended June 30: Three Months Three Months Ended June 30, 2016 Ended June 30, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Intermodal $ 438,133 $ 116,963 $ (22,168 ) $ 532,928 $ 464,904 $ 118,121 $ (19,958 ) $ 563,067 Truck brokerage 83,140 81,374 (475 ) 164,039 93,067 82,691 (417 ) 175,341 Logistics 127,250 33,587 (2,247 ) 158,590 128,480 33,035 (410 ) 161,105 Total revenue $ 648,523 $ 231,924 $ (24,890 ) $ 855,557 $ 686,451 $ 233,847 $ (20,785 ) $ 899,513 The following is a summary of operating results and certain other financial data for our business segments (in thousands): Six Months Six Months Ended June 30, 2016 Ended June 30, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Revenue $ 1,263,751 $ 440,755 $ (43,090 ) $ 1,661,416 $ 1,329,894 $ 447,369 $ (41,809 ) $ 1,735,454 Transportation costs 1,101,522 380,107 (43,090 ) 1,438,539 1,194,547 391,859 (41,809 ) 1,544,597 Gross margin 162,229 60,648 - 222,877 135,347 55,510 - 190,857 Costs and expenses: Salaries and benefits 79,883 7,582 - 87,465 70,948 7,365 - 78,313 Agent fees and commissions 27 35,235 - 35,262 29 31,483 - 31,512 General and administrative 28,948 3,779 - 32,727 25,392 3,442 - 28,834 Depreciation and amortization 3,644 639 - 4,283 3,265 662 - 3,927 Total costs and expenses 112,502 47,235 - 159,737 99,634 42,952 - 142,586 Operating income $ 49,727 $ 13,413 $ - $ 63,140 $ 35,713 $ 12,558 $ - $ 48,271 Capital Expenditures $ 24,945 $ 272 $ - $ 25,217 $ 23,548 $ 168 $ - $ 23,716 As of June 30, 2016 As of December 31, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Total assets $ 1,093,952 $ 180,902 $ (8,384 ) $ 1,266,470 $ 1,127,042 $ 181,514 $ (7,410 ) $ 1,301,146 Goodwill 233,096 29,389 - 262,485 233,205 29,389 - 262,594 The following tables summarize our revenue by segment and business line (in thousands) for the six months ended June 30: Six Months Six Months Ended June 30, 2016 Ended June 30, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Intermodal $ 851,940 $ 229,329 $ (40,117 ) $ 1,041,152 $ 885,855 $ 228,813 $ (40,367 ) $ 1,074,301 Truck brokerage 164,550 148,722 (502 ) 312,770 182,359 157,043 (582 ) 338,820 Logistics 247,261 62,704 (2,471 ) 307,494 261,680 61,513 (860 ) 322,333 Total revenue $ 1,263,751 $ 440,755 $ (43,090 ) $ 1,661,416 $ 1,329,894 $ 447,369 $ (41,809 ) $ 1,735,454

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2016
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, June 30, Six Months Ended, June 30, 2016 2015 2016 2015 Net income for basic and diluted earnings per share $ 20,671 $ 18,467 $ 38,637 $ 28,743 Weighted average shares outstanding - basic 33,944 35,986 34,541 36,071 Dilutive effect of stock options and restricted stock 83 89 34 51 Weighted average shares outstanding - diluted 34,027 36,075 34,575 36,122 Earnings per share - basic $ 0.61 $ 0.51 $ 1.12 $ 0.80 Earnings per share - diluted $ 0.61 $ 0.51 $ 1.12 $ 0.80

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2016
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 June 30, 2016 and December 31, 2015 due to their short-term nature. We consider as cash equivalents all highly liquid instruments with an original maturity of three months or less. As of June 30, 2016 and December 31, 2015, our cash and temporary investments were with high quality financial institutions in Demand Deposit Accounts (DDAs), Short Term Certificates of Deposit and Savings Accounts. Restricted investments, as of June 30, 2016 of $20.0 million and December 31, 2015 of $21.1 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	6 Months Ended
	Jun. 30, 2016
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 and 2017. As of June 30, 2016, our letters of credit were $8.2 million. Our unused and available borrowings under our variable rate bank revolving line of credit were $41.8 million as of June 30, 2016 and as of December 31, 2015. We were in compliance with our debt covenants as of June 30, 2016. 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 June 30, December 31, 2016 2015 Secured Equipment Notes due on various dates in 2021 with monthly principal and interest payments between $0.01 million and $0.2 million commencing on various dates in 2016; interest is paid monthly at a fixed annual rate between 2.10% and 2.13% $ 13,274 $ - Secured Equipment Notes due on various dates in 2020 with monthly principal and interest payments between $0.04 million and $0.4 million commencing on various dates in 2015 and 2016; interest is paid monthly at a fixed annual rate between 1.72% and 2.26% 55,004 61,206 Secured Equipment Notes due on various dates in 2019 with monthly principal and interest payments between $0.08 million and $0.4 million commencing on various dates in 2014 and 2015; interest is paid monthly at a fixed annual rate between 1.87% and 2.24% 58,460 67,486 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% 3,660 4,612 130,398 133,304 Less current portion (35,430 ) (32,409 ) Total long-term debt $ 94,968 $ 100,895

Guarantees

Guarantees	6 Months Ended
	Jun. 30, 2016
Guarantees [Abstract]
Guarantees	NOTE 6. Guarantees As a recruiting tool for our owner-operators, we are guaranteeing certain owner-operators’ lease payments for tractors. The guarantees expire at various dates through 2020. The potential maximum exposure under these lease guarantees was approximately $3.3 million and $10.3 million as of June 30, 2016 and December 31, 2015, respectively. The potential maximum exposure represents the amount of the remaining lease payments on all outstanding guaranteed leases as of June 30, 2016 and December 31, 2015. 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 June 30, 2016 or the year ended December 31, 2015 and no potential material defaults. We had a liability of approximately $0.1 million as of June 30, 2016 and December 31, 2015, 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	6 Months Ended
	Jun. 30, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 7. Commitments and Contingencies In the second quarter of 2016, we committed to acquire 4,500 53’ containers. We expect the total purchase price of these containers to be approximately $43 million. We expect to take delivery of the equipment between July and November 2016. We will be financing the purchase of this equipment with secured fixed rate debt.

Legal Matters

Legal Matters	6 Months Ended
	Jun. 30, 2016
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 was 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 August 2014. 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. 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 June 30, 2016, 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. In early 2016, Hub Group Trucking closed its operations in Southern 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. On July 19, 2016, Hub Group Trucking’s motion to dismiss was granted in part, and denied in part, by the District Court. The motion to dismiss was granted for the claims of all purported class members who have signed settlement agreements and on plaintiffs’ claims based on quantum merit. Adame 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 Company 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. On October 29, 2015, Defendants filed a notice of removal to remove the case from state court in San Bernardino to federal court in the Central District of California. On November 19, 2015, Defendants filed a motion to transfer the case to federal court in Memphis, Tennessee and also filed a motion to dismiss the case pursuant to a clause in the independent contractor agreement stating that Tennessee law applies. Also on November 19, 2015, Plaintiffs filed a motion to remand the case back to state court, claiming that the federal court lacks jurisdiction over the case. The court granted Plaintiffs’ motion to remand to the state court in San Bernardino County on April 7, 2016, mooting Defendants’ motions to transfer and dismiss. On July 11, 2016, Defendants filed dismissal papers in state court, asking the court to dismiss Plaintiffs’ suit because the agreement between HGT and its former California owner operators requires that this action be brought in Memphis, Tennessee or, in the alternative, order the action stayed pending the outcome in Robles. Briefing will now take place and a hearing currently is scheduled for August 25, 2016. 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 were employees. The complaint also 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 claimed 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, which provided that Tennessee law governed. 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. On December 17, 2015, Lubinski filed his brief in support of his appeal of the motion to dismiss, asserting for the first time that the federal court did not have jurisdiction over the case due to a lack of diversity of citizenship. Hub Group Trucking filed its response brief on January 19, 2016, in part arguing that Lubinski had himself alleged diversity of citizenship in his complaint. Lubinski filed his reply brief on February 5, 2016. On April 1, 2016, the Sixth Circuit remanded the case to the district court—without ruling on the merits—for the district court “to consider the argument and admit the evidence necessary to determine the question of federal subject-matter jurisdiction.” On July 11, 2016, with his federal district court case still pending, Lubinski filed an additional putative class action Complaint, with the same claims, in Illinois state court. On the same day, HGT filed a declaratory judgment complaint in Tennessee state court, seeking a declaration that Lubinski’s claims must be heard in Tennessee (based on the contractual choice-of-forum provision) and that the claims must be dismissed because Tennessee law controls and Lubinski’s claims are preempted by federal law. 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	6 Months Ended
	Jun. 30, 2016
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. In November 2015, the Financial Accounting Standards Board (“FASB”) issued Update No. 2015-17—Income Taxes (Topic 740). This Standard provides guidance on the balance sheet classification of deferred taxes, amending the accounting for income taxes and requiring all deferred tax assets and liabilities to be classified as non-current on the consolidated balance sheet. In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize a right-to-use asset and a lease obligation for all leases. Lessees are permitted to make an accounting policy election to not recognize an asset and liability for leases with a term of twelve months or less. The new standard will become effective beginning with the first quarter of 2019. Early adoption of the standard is permitted. We plan to adopt this standard January 1, 2019, as required. We are currently evaluating a transition method In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting ,

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Event	NOTE 10. Subsequent Event In July 2016, we committed to acquire 100 trailers. We expect the total purchase price of this equipment to be approximately $3 million. We expect to take delivery of this equipment at various times in the third and fourth quarter of 2016. We intend to finance the purchase of this equipment with secured fixed rate debt.

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Jun. 30, 2016
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 June 30, 2016 Ended June 30, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Revenue $ 648,523 $ 231,924 $ (24,890 ) $ 855,557 $ 686,451 $ 233,847 $ (20,785 ) $ 899,513 Transportation costs 565,448 200,509 (24,890 ) 741,067 614,289 204,280 (20,785 ) 797,784 Gross margin 83,075 31,415 - 114,490 72,162 29,567 - 101,729 Costs and expenses: Salaries and benefits 39,787 3,815 - 43,602 35,288 3,549 - 38,837 Agent fees and commissions 13 18,347 - 18,360 14 16,672 - 16,686 General and administrative 14,226 1,857 - 16,083 13,194 1,569 - 14,763 Depreciation and amortization 1,830 318 - 2,148 1,647 320 - 1,967 Total costs and expenses 55,856 24,337 - 80,193 50,143 22,110 - 72,253 Operating income $ 27,219 $ 7,078 $ - $ 34,297 $ 22,019 $ 7,457 $ - $ 29,476 Capital Expenditures $ 20,314 $ 10 $ - $ 20,324 $ 8,550 $ 109 $ - $ 8,659 The following is a summary of operating results and certain other financial data for our business segments (in thousands): Six Months Six Months Ended June 30, 2016 Ended June 30, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Revenue $ 1,263,751 $ 440,755 $ (43,090 ) $ 1,661,416 $ 1,329,894 $ 447,369 $ (41,809 ) $ 1,735,454 Transportation costs 1,101,522 380,107 (43,090 ) 1,438,539 1,194,547 391,859 (41,809 ) 1,544,597 Gross margin 162,229 60,648 - 222,877 135,347 55,510 - 190,857 Costs and expenses: Salaries and benefits 79,883 7,582 - 87,465 70,948 7,365 - 78,313 Agent fees and commissions 27 35,235 - 35,262 29 31,483 - 31,512 General and administrative 28,948 3,779 - 32,727 25,392 3,442 - 28,834 Depreciation and amortization 3,644 639 - 4,283 3,265 662 - 3,927 Total costs and expenses 112,502 47,235 - 159,737 99,634 42,952 - 142,586 Operating income $ 49,727 $ 13,413 $ - $ 63,140 $ 35,713 $ 12,558 $ - $ 48,271 Capital Expenditures $ 24,945 $ 272 $ - $ 25,217 $ 23,548 $ 168 $ - $ 23,716
Summary of Revenue by Segment and Business Line	The following tables summarize our revenue by segment and business line (in thousands) for the quarter ended June 30: Three Months Three Months Ended June 30, 2016 Ended June 30, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Intermodal $ 438,133 $ 116,963 $ (22,168 ) $ 532,928 $ 464,904 $ 118,121 $ (19,958 ) $ 563,067 Truck brokerage 83,140 81,374 (475 ) 164,039 93,067 82,691 (417 ) 175,341 Logistics 127,250 33,587 (2,247 ) 158,590 128,480 33,035 (410 ) 161,105 Total revenue $ 648,523 $ 231,924 $ (24,890 ) $ 855,557 $ 686,451 $ 233,847 $ (20,785 ) $ 899,513 The following tables summarize our revenue by segment and business line (in thousands) for the six months ended June 30: Six Months Six Months Ended June 30, 2016 Ended June 30, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Intermodal $ 851,940 $ 229,329 $ (40,117 ) $ 1,041,152 $ 885,855 $ 228,813 $ (40,367 ) $ 1,074,301 Truck brokerage 164,550 148,722 (502 ) 312,770 182,359 157,043 (582 ) 338,820 Logistics 247,261 62,704 (2,471 ) 307,494 261,680 61,513 (860 ) 322,333 Total revenue $ 1,263,751 $ 440,755 $ (43,090 ) $ 1,661,416 $ 1,329,894 $ 447,369 $ (41,809 ) $ 1,735,454
Schedule of Assets	As of June 30, 2016 As of December 31, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Total assets $ 1,093,952 $ 180,902 $ (8,384 ) $ 1,266,470 $ 1,127,042 $ 181,514 $ (7,410 ) $ 1,301,146 Goodwill 233,096 29,389 - 262,485 233,205 29,389 - 262,594

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
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, June 30, Six Months Ended, June 30, 2016 2015 2016 2015 Net income for basic and diluted earnings per share $ 20,671 $ 18,467 $ 38,637 $ 28,743 Weighted average shares outstanding - basic 33,944 35,986 34,541 36,071 Dilutive effect of stock options and restricted stock 83 89 34 51 Weighted average shares outstanding - diluted 34,027 36,075 34,575 36,122 Earnings per share - basic $ 0.61 $ 0.51 $ 1.12 $ 0.80 Earnings per share - diluted $ 0.61 $ 0.51 $ 1.12 $ 0.80

Long-Term Debt and Financing 18

Long-Term Debt and Financing Arrangements (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of Outstanding Debt	Period Ended June 30, December 31, 2016 2015 Secured Equipment Notes due on various dates in 2021 with monthly principal and interest payments between $0.01 million and $0.2 million commencing on various dates in 2016; interest is paid monthly at a fixed annual rate between 2.10% and 2.13% $ 13,274 $ - Secured Equipment Notes due on various dates in 2020 with monthly principal and interest payments between $0.04 million and $0.4 million commencing on various dates in 2015 and 2016; interest is paid monthly at a fixed annual rate between 1.72% and 2.26% 55,004 61,206 Secured Equipment Notes due on various dates in 2019 with monthly principal and interest payments between $0.08 million and $0.4 million commencing on various dates in 2014 and 2015; interest is paid monthly at a fixed annual rate between 1.87% and 2.24% 58,460 67,486 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% 3,660 4,612 130,398 133,304 Less current portion (35,430 ) (32,409 ) Total long-term debt $ 94,968 $ 100,895

Business Segments - Additional

Business Segments - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2016Segment
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		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Revenue	$ 855,557	$ 899,513	$ 1,661,416	$ 1,735,454
Transportation costs	741,067	797,784	1,438,539	1,544,597
Gross margin	114,490	101,729	222,877	190,857
Costs and expenses:
Salaries and benefits	43,602	38,837	87,465	78,313
Agent fees and commissions	18,360	16,686	35,262	31,512
General and administrative	16,083	14,763	32,727	28,834
Depreciation and amortization	2,148	1,967	4,283	3,927
Total costs and expenses	80,193	72,253	159,737	142,586
Operating income	34,297	29,476	63,140	48,271
Capital Expenditures	20,324	8,659	25,217	23,716
Operating Segments [Member] | Hub [Member]
Segment Reporting Information [Line Items]
Revenue	648,523	686,451	1,263,751	1,329,894
Transportation costs	565,448	614,289	1,101,522	1,194,547
Gross margin	83,075	72,162	162,229	135,347
Costs and expenses:
Salaries and benefits	39,787	35,288	79,883	70,948
Agent fees and commissions	13	14	27	29
General and administrative	14,226	13,194	28,948	25,392
Depreciation and amortization	1,830	1,647	3,644	3,265
Total costs and expenses	55,856	50,143	112,502	99,634
Operating income	27,219	22,019	49,727	35,713
Capital Expenditures	20,314	8,550	24,945	23,548
Operating Segments [Member] | Mode LLC [Member]
Segment Reporting Information [Line Items]
Revenue	231,924	233,847	440,755	447,369
Transportation costs	200,509	204,280	380,107	391,859
Gross margin	31,415	29,567	60,648	55,510
Costs and expenses:
Salaries and benefits	3,815	3,549	7,582	7,365
Agent fees and commissions	18,347	16,672	35,235	31,483
General and administrative	1,857	1,569	3,779	3,442
Depreciation and amortization	318	320	639	662
Total costs and expenses	24,337	22,110	47,235	42,952
Operating income	7,078	7,457	13,413	12,558
Capital Expenditures	10	109	272	168
Intersegment Elims [Member]
Segment Reporting Information [Line Items]
Revenue	(24,890)	(20,785)	(43,090)	(41,809)
Transportation costs	$ (24,890)	$ (20,785)	$ (43,090)	$ (41,809)

Summary of Revenue by Segment a

Summary of Revenue by Segment and Business Line (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Revenue	$ 855,557	$ 899,513	$ 1,661,416	$ 1,735,454
Intermodal [Member]
Segment Reporting Information [Line Items]
Revenue	532,928	563,067	1,041,152	1,074,301
Truck brokerage [Member]
Segment Reporting Information [Line Items]
Revenue	164,039	175,341	312,770	338,820
Logistics [Member]
Segment Reporting Information [Line Items]
Revenue	158,590	161,105	307,494	322,333
Operating Segments [Member] | Hub [Member]
Segment Reporting Information [Line Items]
Revenue	648,523	686,451	1,263,751	1,329,894
Operating Segments [Member] | Hub [Member] | Intermodal [Member]
Segment Reporting Information [Line Items]
Revenue	438,133	464,904	851,940	885,855
Operating Segments [Member] | Hub [Member] | Truck brokerage [Member]
Segment Reporting Information [Line Items]
Revenue	83,140	93,067	164,550	182,359
Operating Segments [Member] | Hub [Member] | Logistics [Member]
Segment Reporting Information [Line Items]
Revenue	127,250	128,480	247,261	261,680
Operating Segments [Member] | Mode LLC [Member]
Segment Reporting Information [Line Items]
Revenue	231,924	233,847	440,755	447,369
Operating Segments [Member] | Mode LLC [Member] | Intermodal [Member]
Segment Reporting Information [Line Items]
Revenue	116,963	118,121	229,329	228,813
Operating Segments [Member] | Mode LLC [Member] | Truck brokerage [Member]
Segment Reporting Information [Line Items]
Revenue	81,374	82,691	148,722	157,043
Operating Segments [Member] | Mode LLC [Member] | Logistics [Member]
Segment Reporting Information [Line Items]
Revenue	33,587	33,035	62,704	61,513
Intersegment Elims [Member]
Segment Reporting Information [Line Items]
Revenue	(24,890)	(20,785)	(43,090)	(41,809)
Intersegment Elims [Member] | Intermodal [Member]
Segment Reporting Information [Line Items]
Revenue	(22,168)	(19,958)	(40,117)	(40,367)
Intersegment Elims [Member] | Truck brokerage [Member]
Segment Reporting Information [Line Items]
Revenue	(475)	(417)	(502)	(582)
Intersegment Elims [Member] | Logistics [Member]
Segment Reporting Information [Line Items]
Revenue	$ (2,247)	$ (410)	$ (2,471)	$ (860)

Schedule of Assets (Detail)

Schedule of Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Total assets	$ 1,266,470	$ 1,301,146
Goodwill	262,485	262,594
Operating Segments [Member] | Hub [Member]
Segment Reporting Information [Line Items]
Total assets	1,093,952	1,127,042
Goodwill	233,096	233,205
Operating Segments [Member] | Mode LLC [Member]
Segment Reporting Information [Line Items]
Total assets	180,902	181,514
Goodwill	29,389	29,389
Intersegment Elims [Member]
Segment Reporting Information [Line Items]
Total assets	$ (8,384)	$ (7,410)

Reconciliation of Earnings Per

Reconciliation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Net income for basic and diluted earnings per share	$ 20,671	$ 18,467	$ 38,637	$ 28,743
Weighted average shares outstanding - basic	33,944	35,986	34,541	36,071
Dilutive effect of stock options and restricted stock	83	89	34	51
Weighted average shares outstanding - diluted	34,027	36,075	34,575	36,122
Earnings per share - basic	$ 0.61	$ 0.51	$ 1.12	$ 0.80
Earnings per share - diluted	$ 0.61	$ 0.51	$ 1.12	$ 0.80

Fair Value Measurement - Additi

Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Restricted investments	$ 20	$ 21.1

Long-Term Debt and Financing 25

Long-Term Debt and Financing Arrangements - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Standby Letters of Credit [Member]
Line Of Credit Facility [Line Items]
Letters of credit expiration date	various dates in 2016 and 2017
Outstanding letters of credit	$ 8.2
Revolving Line of Credit Facility [Member] | Bank Revolving Line of Credit [Member]
Line Of Credit Facility [Line Items]
Unused and available borrowings under variable rate bank revolving line of credit	$ 41.8	$ 41.8

Schedule of Outstanding Debt (D

Schedule of Outstanding Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Secured long-term debt	$ 130,398	$ 133,304
Less current portion	(35,430)	(32,409)
Total long-term debt	94,968	100,895
Secured Equipment Notes due in 2021 [Member]
Debt Instrument [Line Items]
Secured long-term debt	13,274
Secured Equipment Notes due in 2020 [Member]
Debt Instrument [Line Items]
Secured long-term debt	55,004	61,206
Secured Equipment Notes due in 2019 [Member]
Debt Instrument [Line Items]
Secured long-term debt	58,460	67,486
Secured Equipment Notes due in June 2018 [Member]
Debt Instrument [Line Items]
Secured long-term debt	$ 3,660	$ 4,612

Schedule of Outstanding Debt (P

Schedule of Outstanding Debt (Parenthetical) (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Secured Equipment Notes due in 2021 [Member]
Debt Instrument [Line Items]
Equipment notes due period	2,021
Equipment notes, date of first required payment	2,016
Payment Frequency	monthly
Secured Equipment Notes due in 2020 [Member]
Debt Instrument [Line Items]
Equipment notes due period	2,020
Payment Frequency	monthly
Secured Equipment Notes due in 2020 [Member] | Commencing on 2015 [Member]
Debt Instrument [Line Items]
Equipment notes, date of first required payment	2,015
Secured Equipment Notes due in 2020 [Member] | Commencing on 2016 [Member]
Debt Instrument [Line Items]
Equipment notes, date of first required payment	2,016
Secured Equipment Notes due in 2019 [Member]
Debt Instrument [Line Items]
Equipment notes due period	2,019
Payment Frequency	monthly
Secured Equipment Notes due in 2019 [Member] | Commencing on 2015 [Member]
Debt Instrument [Line Items]
Equipment notes, date of first required payment	2,015
Secured Equipment Notes due in 2019 [Member] | Commencing on 2014 [Member]
Debt Instrument [Line Items]
Equipment notes, date of first required payment	2,014
Secured Equipment Notes due in June 2018 [Member]
Debt Instrument [Line Items]
Monthly payments	$ 500
Payment Frequency	quarterly
Equipment notes due	Jun. 30, 2018
Equipment notes, date of first required payment	Aug. 31, 2013
Minimum [Member] | Secured Equipment Notes due in 2021 [Member]
Debt Instrument [Line Items]
Monthly payments	$ 10
Interest rate secured debt	2.10%
Minimum [Member] | Secured Equipment Notes due in 2020 [Member]
Debt Instrument [Line Items]
Monthly payments	$ 40
Interest rate secured debt	1.72%
Minimum [Member] | Secured Equipment Notes due in 2019 [Member]
Debt Instrument [Line Items]
Monthly payments	$ 80
Interest rate secured debt	1.87%
Minimum [Member] | Secured Equipment Notes due in June 2018 [Member]
Debt Instrument [Line Items]
Interest rate secured debt	1.90%
Maximum [Member] | Secured Equipment Notes due in 2021 [Member]
Debt Instrument [Line Items]
Monthly payments	$ 200
Interest rate secured debt	2.13%
Maximum [Member] | Secured Equipment Notes due in 2020 [Member]
Debt Instrument [Line Items]
Monthly payments	$ 400
Interest rate secured debt	2.26%
Maximum [Member] | Secured Equipment Notes due in 2019 [Member]
Debt Instrument [Line Items]
Monthly payments	$ 400
Interest rate secured debt	2.24%
Maximum [Member] | Secured Equipment Notes due in June 2018 [Member]
Debt Instrument [Line Items]
Interest rate secured debt	2.00%

Guarantees - Additional Informa

Guarantees - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Guarantees [Abstract]
Expiration dates of guarantees	2,020
Potential maximum exposure under these lease guarantees	$ 3.3	$ 10.3
Liability representing fair value for estimated defaults of guarantees, based on discounted cash-flow analysis	$ 0.1	$ 0.1

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Millions	3 Months Ended
	Jun. 30, 2016USD ($)Container
Commitments And Contingencies Disclosure [Abstract]
Purchase contract units, containers | Container	4,500
Cost of purchasing containers | $	$ 43

Legal Matters - Additional Info

Legal Matters - Additional Information (Detail) - Robles Lawsuits [Member]	Aug. 05, 2015PlaintiffEmployee	May 31, 2015Plaintiff	Jun. 30, 2016
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

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) - Subsequent Event [Member] $ in Millions	1 Months Ended
	Jul. 31, 2016USD ($)Trailer
Subsequent Event [Line Items]
Purchase contract units trailers | Trailer	100
Cost of purchasing equipment | $	$ 3