Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 16, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HUBG | ||
Entity Registrant Name | Hub Group, Inc. | ||
Entity Central Index Key | 940,942 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,248,870,411 | ||
Class A Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 33,471,346 | ||
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 | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 127,404 | $ 207,749 |
Accounts receivable trade, net | 473,608 | 379,987 |
Accounts receivable other | 4,331 | 10,344 |
Prepaid taxes | 294 | 362 |
Deferred taxes | 8,412 | |
Prepaid expenses and other current assets | 16,653 | 17,756 |
TOTAL CURRENT ASSETS | 622,290 | 624,610 |
Restricted investments | 20,877 | 21,108 |
Property and equipment, net | 438,594 | 374,847 |
Other intangibles, net | 11,844 | 13,139 |
Goodwill, net | 262,376 | 262,594 |
Other assets | 4,278 | 4,848 |
TOTAL ASSETS | 1,360,259 | 1,301,146 |
CURRENT LIABILITIES: | ||
Accounts payable trade | 266,555 | 230,432 |
Accounts payable other | 21,070 | 21,495 |
Accrued payroll | 36,223 | 33,020 |
Accrued other | 46,013 | 38,733 |
Current portion of capital lease | 2,697 | 2,608 |
Current portion of long-term debt | 45,163 | 32,409 |
TOTAL CURRENT LIABILITIES | 417,721 | 358,697 |
Long-term debt | 115,529 | 100,895 |
Non-current liabilities | 23,595 | 20,233 |
Long-term portion of capital lease | 10,576 | 13,299 |
Deferred taxes | 164,659 | 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 | 173,565 | 174,285 |
Purchase price in excess of predecessor basis, net of tax benefit of $10,306 | (15,458) | (15,458) |
Retained earnings | 735,563 | 660,758 |
Accumulated other comprehensive loss | (273) | (178) |
Treasury stock; at cost, 8,031,810 shares in 2016 and 5,590,831 shares in 2015 | (265,637) | (171,986) |
TOTAL STOCKHOLDERS' EQUITY | 628,179 | 647,840 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,360,259 | 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 | Dec. 31, 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 | 8,031,810 | 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 | 33,192,982 | 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 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenue | $ 3,572,790 | $ 3,525,595 | $ 3,571,126 |
Transportation costs | 3,118,005 | 3,112,900 | 3,200,691 |
Gross margin | 454,785 | 412,695 | 370,435 |
Costs and expenses: | |||
Salaries and benefits | 180,459 | 158,938 | 136,480 |
Agent fees and commissions | 72,896 | 68,724 | 62,041 |
General and administrative | 68,630 | 60,015 | 58,014 |
Depreciation and amortization | 8,966 | 7,988 | 7,799 |
Driver settlements and related costs | 10,343 | ||
Impairment of software | 11,881 | ||
Total costs and expenses | 330,951 | 295,665 | 286,558 |
Operating income | 123,834 | 117,030 | 83,877 |
Other income (expense): | |||
Interest expense | (3,625) | (2,971) | (1,785) |
Interest and dividend income | 393 | 83 | 32 |
Other, net | 819 | (2,560) | (257) |
Total other expense | (2,413) | (5,448) | (2,010) |
Income before provision for income taxes | 121,421 | 111,582 | 81,867 |
Provision for income taxes | 46,616 | 40,633 | 30,309 |
Net income | 74,805 | 70,949 | 51,558 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (95) | (101) | 8 |
Total comprehensive income | $ 74,710 | $ 70,848 | $ 51,566 |
Basic earnings per common share | $ 2.21 | $ 1.98 | $ 1.41 |
Diluted earnings per common share | $ 2.20 | $ 1.97 | $ 1.40 |
Basic weighted average number of shares outstanding | 33,841 | 35,876 | 36,590 |
Diluted weighted average number of shares outstanding | 33,949 | 35,968 | 36,732 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) $ in Thousands | Total | Class A and B Common Stock [Member] | Additional Paid-in Capital [Member] | Purchase Price Of Excess Of Predecessor Basis, Net Of Tax [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 31, 2013 | $ 561,527 | $ 419 | $ 167,357 | $ (15,458) | $ 538,251 | $ (85) | $ (128,957) |
Beginning Balance (in shares) at Dec. 31, 2013 | 41,887,088 | (4,598,408) | |||||
Purchase of treasury shares | (18,024) | $ (18,024) | |||||
Purchase of treasury shares (in shares) | (501,271) | ||||||
Stock tendered for payments of withholding taxes | (3,195) | $ (3,195) | |||||
Stock tendered for payments of withholding taxes (in shares) | (80,772) | ||||||
Issuance of restricted stock awards, net of forfeitures | (5,032) | $ 5,032 | |||||
Issuance of restricted stock awards, net of forfeitures (in shares) | 202,983 | ||||||
Share-based compensation expense | 8,258 | 8,258 | |||||
Tax benefit of share-based compensation plans | 652 | 652 | |||||
Net income | 51,558 | 51,558 | |||||
Foreign currency translation adjustment | 8 | 8 | |||||
Ending Balance at Dec. 31, 2014 | 600,784 | $ 419 | 171,235 | (15,458) | 589,809 | (77) | $ (145,144) |
Ending Balance (in shares) at Dec. 31, 2014 | 41,887,088 | (4,977,468) | |||||
Purchase of treasury shares | (28,823) | $ (28,823) | |||||
Purchase of treasury shares (in shares) | (735,524) | ||||||
Stock tendered for payments of withholding taxes | (2,916) | $ (2,916) | |||||
Stock tendered for payments of withholding taxes (in shares) | (77,732) | ||||||
Issuance of restricted stock awards, net of forfeitures | (4,897) | $ 4,897 | |||||
Issuance of restricted stock awards, net of forfeitures (in shares) | 199,893 | ||||||
Share-based compensation expense | 7,833 | 7,833 | |||||
Tax benefit of share-based compensation plans | 114 | 114 | |||||
Net income | 70,949 | 70,949 | |||||
Foreign currency translation adjustment | (101) | (101) | |||||
Ending Balance at Dec. 31, 2015 | 647,840 | $ 419 | 174,285 | (15,458) | 660,758 | (178) | $ (171,986) |
Ending Balance (in shares) at Dec. 31, 2015 | 41,887,088 | (5,590,831) | |||||
Purchase of treasury shares | $ (100,000) | $ (100,000) | |||||
Purchase of treasury shares (in shares) | (2,672,227) | (2,672,227) | |||||
Stock tendered for payments of withholding taxes | $ (2,489) | $ (2,489) | |||||
Stock tendered for payments of withholding taxes (in shares) | (73,546) | ||||||
Issuance of restricted stock awards, net of forfeitures | (8,838) | $ 8,838 | |||||
Issuance of restricted stock awards, net of forfeitures (in shares) | 304,794 | ||||||
Share-based compensation expense | 8,479 | 8,479 | |||||
Tax benefit of share-based compensation plans | (361) | (361) | |||||
Net income | 74,805 | 74,805 | |||||
Foreign currency translation adjustment | (95) | (95) | |||||
Ending Balance at Dec. 31, 2016 | $ 628,179 | $ 419 | $ 173,565 | $ (15,458) | $ 735,563 | $ (273) | $ (265,637) |
Ending Balance (in shares) at Dec. 31, 2016 | 41,887,088 | (8,031,810) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 74,805 | $ 70,949 | $ 51,558 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 44,712 | 37,042 | 29,380 |
Impairment of software | 11,881 | ||
Deferred taxes | 13,801 | 16,378 | 24,501 |
Compensation expense related to share-based compensation plans | 8,479 | 7,833 | 8,258 |
Gain on sale of assets | (573) | (129) | (46) |
Excess tax benefits from share based compensation | (733) | (81) | |
Changes in operating assets and liabilities: | |||
Restricted investments | 231 | 836 | (1,190) |
Accounts receivable, net | (87,629) | 36,373 | (28,621) |
Prepaid taxes | 66 | 14,575 | (14,533) |
Prepaid expenses and other current assets | 1,099 | (3,401) | (1,621) |
Other assets | 570 | (805) | (2,047) |
Accounts payable | 35,709 | (25,736) | 20,370 |
Accrued expenses | 9,238 | 20,505 | 367 |
Non-current liabilities | 2,698 | (2,642) | 284 |
Net cash provided by operating activities | 102,473 | 171,697 | 98,541 |
Cash flows from investing activities: | |||
Proceeds from sale of equipment | 2,061 | 2,309 | 612 |
Purchases of property and equipment | (107,409) | (83,042) | (119,171) |
Net cash used in investing activities | (105,348) | (80,733) | (118,559) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 62,155 | 64,442 | 91,084 |
Repayments of long-term debt | (34,767) | (23,217) | (7,251) |
Stock tendered for payments of withholding taxes | (2,489) | (2,916) | (3,195) |
Purchase of treasury stock | (100,000) | (28,823) | (18,024) |
Capital lease payments | (2,634) | (2,534) | (2,449) |
Excess tax benefits from share-based compensation | 372 | 195 | 652 |
Net cash (used in) provided by financing activities | (77,363) | 7,147 | 60,817 |
Effect of exchange rate changes on cash and cash equivalents | (107) | (131) | 6 |
Net (decrease) increase in cash and cash equivalents | (80,345) | 97,980 | 40,805 |
Cash and cash equivalents beginning of the year | 207,749 | 109,769 | 68,964 |
Cash and cash equivalents end of the year | 127,404 | 207,749 | 109,769 |
Supplemental disclosures of cash paid for: | |||
Interest | 3,665 | 2,977 | 1,532 |
Income taxes | $ 33,233 | $ 6,990 | $ 20,189 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | NOTE 1. Description of Business and Summary of Significant Accounting Policies Business : Hub Group, Inc. (“we”, “us” or “our”) provides intermodal transportation services utilizing primarily third party arrangements with railroads. Drayage can be provided by our subsidiary, Hub Group Trucking, Inc., or a third party company. We also arrange for transportation of freight by truck and perform logistics services. Transportation services are provided through our legacy business and our acquisition, Mode Transportation, LLC. We report two distinct business segments. The first segment is Mode, which includes the Mode business we acquired on April 1, 2011. The other segment is Hub, which is all business other than Mode. “Hub Group” includes both segments. Principles of Consolidation : The consolidated financial statements include our accounts and all entities in which we have more than a 50% equity ownership or otherwise exercise unilateral control. All significant intercompany balances and transactions have been eliminated. Cash and Cash Equivalents : We consider as cash equivalents all highly liquid instruments with an original maturity of three months or less. As of December 31, 2016 and 2015, our cash and temporary investments were with high quality financial institutions in DDAs (Demand Deposit Accounts) and Savings Accounts. Accounts Receivable and Allowance for Uncollectible Accounts: In the normal course of business, we extend credit to customers after a review of each customer’s credit history. An allowance for uncollectible trade accounts has been established through an analysis of the accounts receivable aging, an assessment of collectability based on historical trends and an evaluation based on current economic conditions. To be more specific, we reserve a portion of every account balance that has aged over one year, a portion of receivables for customers in bankruptcy and certain account balances specifically identified as uncollectible. On an annual basis, we perform a hindsight analysis on Hub and Mode separately to determine each segment’s experience in collecting account balances over one year old and account balances in bankruptcy. We then use this hindsight analysis to establish our reserves for receivables over one year and in bankruptcy. In establishing a reserve for certain account balances specifically identified as uncollectible, we consider the aging of the customer receivables, the specific details as to why the receivable has not been paid, the customer’s current and projected financial results, the customer’s ability to meet and sustain their financial commitments, the positive or negative effects of the current and projected industry outlook and the general economic conditions. The allowance for uncollectible accounts is reported on the balance sheet in net accounts receivable. Our reserve for uncollectible accounts was approximately $5.4 million and $5.2 million as of December 31, 2016 and 2015, respectively. Receivables are written off once collection efforts have been exhausted. Recoveries of receivables previously charged off are recorded when received. Property and Equipment : Property and equipment are stated at cost. Depreciation of property and equipment is computed using the straight-line method at rates adequate to depreciate the cost of the applicable assets over their expected useful lives: building and improvements, up to 40 years; leasehold improvements, the shorter of useful life or lease term; computer equipment and software, up to 10 years; furniture and equipment, up to 10 years; and transportation equipment up to 15 years. Direct costs related to internally developed software projects are capitalized and amortized over their expected useful life on a straight-line basis not to exceed 10 years. Interest is capitalized on qualifying assets under development for internal use. Maintenance and repairs are charged to operations as incurred and major improvements are capitalized. The cost of assets retired or otherwise disposed of and the accumulated depreciation thereon are removed from the accounts with any gain or loss realized upon sale or disposal charged or credited to operations. We review long-lived assets for impairment when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. In the event that the undiscounted future cash flows resulting from the use of the asset group is less than the carrying amount, an impairment loss equal to the excess of the assets carrying amount over its fair value, less cost to dispose, is recorded. Goodwill and Other Intangibles : Goodwill represents the excess of purchase price over the fair market value of net assets acquired in connection with our business combinations. Goodwill and intangible assets that have indefinite useful lives are not amortized but are subject to annual impairment tests. We test goodwill for impairment annually in the fourth quarter or when events or changes in circumstances indicate the carrying value of this asset might exceed the current fair value. We test goodwill for impairment at the reporting unit level. We assess qualitative factors such as current company performance and overall economic factors to determine if it is more-likely-than-not that the goodwill might be impaired and whether it is necessary to perform the quantitative goodwill impairment test. In the quantitative goodwill test, a company compares the carrying value of a reporting unit to its fair value. If the carrying value of the reporting unit exceeds the estimated fair value, a second step is performed, which compares the implied fair value of goodwill to the carrying value, to determine the amount of impairment. In 2016 and 2015, we performed the qualitative assessment on both the Hub and Mode reporting units and determined it was not, more-likely-than-not, that goodwill might be impaired. We evaluate the potential impairment of finite-lived acquired intangible assets when impairment indicators exist. If the carrying value is no longer recoverable based upon the undiscounted future cash flows of the asset, the amount of the impairment is the difference between the carrying amount and the fair value of the asset. Concentration of Credit Risk : Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We place our cash and temporary investments with high quality financial institutions in DDAs (Demand Deposit Accounts) and Savings Accounts. We primarily serve customers located throughout the United States with no significant concentration in any one region. No one customer accounted for more than 10% of revenue in 2016, 2015 or 2014. We review a customer’s credit history before extending credit. In addition, we routinely assess the financial strength of our customers and, as a consequence, believe that our trade accounts receivable risk is limited. Revenue Recognition : Revenue is recognized at the time 1) persuasive evidence of an arrangement exists, 2) services have been rendered, 3) the sales price is fixed and determinable and 4) collectability is reasonably assured. Revenue and related transportation costs are recognized based on relative transit time. Further, in most cases, we report our revenue on a gross basis because we are the primary obligor as we are responsible for providing the service desired by the customer. Our customers view us as responsible for fulfillment including the acceptability of the service. Services requirements may include, for example, on-time delivery, handling freight loss and damage claims, setting up appointments for pick-up and delivery and tracing shipments in transit. We have discretion in setting sales prices and as a result, the amount we earn varies. In addition, we have the discretion to select our vendors from multiple suppliers for the services ordered by our customers. Finally, we have credit risk for our receivables. These three factors, discretion in setting prices, discretion in selecting vendors and credit risk, further support reporting revenue on a gross basis for most of our revenue. Provision for Income Taxes : Deferred income taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting using tax rates in effect for the years in which the differences are expected to reverse. We believe that it is more likely than not that our deferred tax assets will be realized based on future taxable income projections with two exceptions for which we have established valuation allowances. We have established valuation allowances of $0.1 million related to state tax net operating losses and $0.4 million related to state incentive tax credit carryforwards. In the event the probability of realizing the remaining deferred tax assets do not meet the more likely than not threshold in the future, a valuation allowance would be established for the deferred tax assets deemed unrecoverable. Tax liabilities are recorded when, in management’s judgment, a tax position does not meet the more likely than not threshold for recognition as prescribed by the guidance. For tax positions that meet the more likely than not threshold, a tax liability may be recorded depending on management’s assessment of how the tax position will ultimately be settled. We recognize interest expense and penalties related to income tax liabilities in our provision for income taxes. Earnings Per Common Share : Basic earnings per common share are based on the average quarterly weighted average number of Class A and Class B shares of common stock outstanding. Diluted earnings per common share are adjusted for the assumed exercise of dilutive stock options and for restricted stock which are both computed using the treasury stock method. Stock Based Compensation: Share-based compensation includes the restricted stock awards expected to vest based on the grant date fair value. Compensation expense is amortized straight-line over the vesting period including an estimate of forfeitures and is included in salaries and benefits. We present excess tax benefits resulting from the exercise of share-based compensation as financing cash in-flows and as operating cash out-flows in the Consolidated Statements of Cash Flows. New Pronouncements: In May 2014, the 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. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued several amendments to the standard, including clarification on accounting for principal vs agent and identifying performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). We currently anticipate adopting the standard using the full retrospective method to restate each prior reporting period presented. Early application is permitted for annual reporting periods beginning after December 15, 2016. We plan to adopt this standard January 1, 2018, as required. While we are continuing to assess all potential impacts of the standard, other than additional disclosures, we do not anticipate that this standard will have a material impact on our consolidated financial statements. We have analyzed our revenue stream, began analysis of our current contracts and will continue to analyze these contracts. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 explicitly requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard is effective for all entities in the first annual period ending after December 15, 2016. We adopted this standard for the year ended December 31, 2016 and it did not have an impact on our financial condition, results of operations and cash flows. In November 2015, the 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 the impacts the adoption of this accounting guidance will have on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , In 2016, the FASB issued new guidance that requires credit losses on financial assets measured at amortized cost basis to be presented at the net amount expected to be collected, not based on incurred losses . In 2016, the FASB issued new guidance which clarifies the classification of certain cash receipts and cash payments in the statement of cash flows, including debt prepayment or extinguishment costs, settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements. Use of Estimates : The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Significant estimates include the allowance for doubtful accounts, exposure under our insurance and claims policies and useful lives of equipment. Actual results could differ from those estimates. |
Capital Structure
Capital Structure | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Capital Structure | NOTE 2. Capital Structure We have authorized common stock comprised of Class A Common Stock and Class B Common Stock. The rights of holders of Class A Common Stock and Class B Common Stock are identical, except each share of Class B Common Stock entitles its holder to 84 votes, while each share of Class A Common Stock entitles its holder to one vote. We have authorized 2,000,000 shares of preferred stock. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 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): Years Ended, December 31, 2016 2015 2014 Net income for basic and diluted earnings per share $ 74,805 $ 70,949 $ 51,558 Weighted average shares outstanding - basic 33,841 35,876 36,590 Dilutive effect of stock options and restricted stock 108 92 142 Weighted average shares outstanding - diluted 33,949 35,968 36,732 Earnings per share - basic $ 2.21 $ 1.98 $ 1.41 Earnings per share - diluted $ 2.20 $ 1.97 $ 1.40 |
Impairment of Software
Impairment of Software | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Impairment of Software | NOTE 4. Impairment of Software In 2014, the Hub segment recorded a full write-off of $11.9 million related to software development costs as a result of our decision to terminate a long-term technology project. Upon deployment in the third quarter of 2014, it was discovered that the software did not properly integrate with our current systems or meet the criteria for which it was designed. We did not believe the software could be cost effectively salvaged and it has no value on the open market. This charge is included in Impairment of software in the Consolidated Statements of Income and Comprehensive Income. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 5. Business Segments We report two distinct business segments. The first segment is Mode, which includes the 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 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, which includes the results of operations of the Mode segment for the years ended December 31, 2016, 2015 and 2014, and certain other financial data for our business segments (in thousands): Twelve Months Twelve Months Ended December 31, 2016 Ended December 31, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Revenue $ 2,734,541 $ 948,735 $ (110,486 ) $ 3,572,790 $ 2,679,318 $ 928,661 $ (82,384 ) $ 3,525,595 Transportation costs 2,404,946 823,545 (110,486 ) 3,118,005 2,385,197 810,087 (82,384 ) 3,112,900 Gross margin 329,595 125,190 - 454,785 294,121 118,574 - 412,695 Costs and expenses: Salaries and benefits 165,136 15,323 - 180,459 143,993 14,945 - 158,938 Agent fees and commissions 66 72,830 - 72,896 56 68,668 - 68,724 General and administrative 60,811 7,819 - 68,630 53,023 6,992 - 60,015 Depreciation and amortization 7,698 1,268 - 8,966 6,688 1,300 - 7,988 Total costs and expenses 233,711 97,240 - 330,951 203,760 91,905 - 295,665 Operating income $ 95,884 $ 27,950 $ - $ 123,834 90,361 26,669 - 117,030 Capital expenditures $ 106,316 $ 1,093 $ - $ 107,409 $ 79,860 $ 3,182 $ - $ 83,042 Twelve Months Ended December 31, 2014 Inter- Hub Segment Group Hub Mode Elims Total Revenue $ 2,722,799 $ 931,131 $ (82,804 ) $ 3,571,126 Transportation costs 2,461,144 822,351 (82,804 ) 3,200,691 Gross margin 261,655 108,780 - 370,435 Costs and expenses: Salaries and benefits 122,097 14,383 - 136,480 Agent fees and commissions 45 61,996 - 62,041 General and administrative 51,108 6,906 - 58,014 Depreciation and amortization 6,238 1,561 - 7,799 Driver settelments and related costs 10,343 - - 10,343 Impairment of software 11,881 - - 11,881 Total costs and expenses 201,712 84,846 - 286,558 Operating income $ 59,943 $ 23,934 $ - $ 83,877 Capital expenditures $ 118,640 $ 531 $ - $ 119,171 As of December 31, 2016 As of December 31, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Total assets $ 1,178,110 $ 191,374 $ (9,225 ) $ 1,360,259 $ 1,127,042 $ 181,514 $ (7,410 ) $ 1,301,146 Goodwill 232,987 29,389 - 262,376 233,205 29,389 - 262,594 The following tables summarize our revenue by segment and business line (in thousands): Twelve Months Twelve Months Ended December 31, 2016 Ended December 31, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Intermodal $ 1,785,865 $ 486,758 $ (81,556 ) $ 2,191,067 $ 1,792,046 $ 483,910 $ (78,688 ) $ 2,197,268 Truck brokerage 391,901 308,055 (1,456 ) 698,500 355,402 314,498 (1,908 ) 667,992 Logistics 556,775 153,922 (27,474 ) 683,223 531,870 130,253 (1,788 ) 660,335 Total revenue $ 2,734,541 $ 948,735 $ (110,486 ) $ 3,572,790 $ 2,679,318 $ 928,661 $ (82,384 ) $ 3,525,595 Twelve Months Ended December 31, 2014 Inter- Hub Segment Group Hub Mode Elims Total Intermodal $ 1,815,842 $ 466,859 $ (79,406 ) $ 2,203,295 Truck brokerage 338,590 335,587 (946 ) 673,231 Logistics 568,367 128,685 (2,452 ) 694,600 Total revenue $ 2,722,799 $ 931,131 $ (82,804 ) $ 3,571,126 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 6. Goodwill and Other Intangible Assets In accordance with the FASB issued guidance in the Intangibles-Goodwill and Other Topic of the Codification, we completed the required annual impairment tests. We performed a qualitative assessment on both the Hub segment goodwill and the Mode segment goodwill and determined it was not, more-likely-than-not, that goodwill might be impaired. There were no accumulated impairment losses of goodwill at the beginning of the period. The following table presents the carrying amount of goodwill (in thousands): Hub Group Hub Mode Total Balance at January 1, 2015 $ 233,424 $ 29,389 $ 262,813 Other (219 ) - (219 ) Balance at December 31, 2015 233,205 29,389 262,594 Other (218 ) - (218 ) Balance at December 31, 2016 $ 232,987 $ 29,389 $ 262,376 The changes noted as “other” in the table above for both 2016 and 2015 refer to the amortization of the income tax benefit of tax goodwill in excess of financial statement goodwill. The components of the “Other intangible assets” are as follows (in thousands): Net Gross Accumulated Carrying As of December 31, 2016: Amount Amortization Value Life Hub Customer relationships $ 5,181 $ (3,792 ) $ 1,389 7-15 years Mode Agency/customer relationships $ 15,362 $ (4,907 ) $ 10,455 18 years Hub Group Total $ 20,543 $ (8,699 ) $ 11,844 Net Gross Accumulated Carrying As of December 31, 2015: Amount Amortization Value Life Hub Customer relationships $ 5,181 $ (3,350 ) $ 1,831 7-15 years Mode Agency/customer relationships $ 15,362 $ (4,054 ) $ 11,308 18 years Hub Group Total $ 20,543 $ (7,404 ) $ 13,139 The above intangible assets are amortized using the straight-line method. Amortization expense for each of the years ended December 31, 2016, 2015 and 2014 was $1.3 million. The remaining weighted average life of all definite lived intangible assets as of December 31, 2016 was 3.60 years and 12.25 years for Hub and Mode, respectively. Amortization expense for the next five years is as follows (in thousands): Hub Group Hub Mode Total 2017 $ 442 $ 853 $ 1,295 2018 395 853 1,248 2019 255 853 1,108 2020 255 853 1,108 2021 42 853 895 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7. Income Taxes The following is a reconciliation of our effective tax rate to the federal statutory tax rate: Years Ended December 31, 2016 2015 2014 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 2.6 2.4 2.9 State incentives (0.2 ) (0.5) (0.8 ) State law changes 0.3 (0.9) (0.9 ) Nondeductible expenses 0.7 0.4 0.9 Other - - (0.1 ) Net effective rate 38.4 % 36.4 % 37.0 % The following is a summary of our provision for income taxes (in thousands): Years Ended December 31, 2016 2015 2014 Current Federal $ 30,324 $ 21,363 $ 5,939 State and local 3,296 2,900 445 Foreign 108 284 249 33,728 24,547 6,633 Deferred Federal 11,981 16,538 23,600 State and local 971 (346 ) 191 Foreign (64 ) (106 ) (115 ) 12,888 16,086 23,676 Total provision $ 46,616 $ 40,633 $ 30,309 In November 2015, the 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. We elected to early adopt this standard as of March 31, 2016 to simplify the presentation of our deferred income taxes and applied the guidance prospectively. As a result, we have presented all deferred tax assets and liabilities as non-current on our consolidated balance sheet as of December 31, 2016, but have not reclassified deferred tax assets and liabilities as noncurrent on our consolidated balance sheet as of December 31, 2015. In the following summary of our deferred tax assets and liabilities (in thousands), however, we are presenting all the deferred tax asset and liability balances as of both December 31, 2016 and December 31, 2015 as noncurrent for better year over year comparability: December 31, 2016 2015 Accrued compensation 20,651 18,448 Other reserves 8,580 4,319 Tax credit carryforwards 1,694 1,257 Operating loss carryforwards 1,399 1,914 Total gross deferred income taxes 32,324 25,938 Valuation allowances (456 ) (108 ) Total deferred tax assets 31,868 25,830 Prepaids (3,401 ) (3,448 ) Other receivables (3,051 ) (4,493 ) Property and equipment (105,905 ) (87,148 ) Goodwill (84,170 ) (82,511 ) Total deferred tax liabilities (196,527 ) (177,600 ) Total deferred taxes $ (164,659 ) $ (151,770 ) We are subject to income taxation in the U.S., numerous state jurisdictions, Mexico and Canada. Because income tax return formats vary among the states, we file both unitary and separate company state income tax returns. Our state tax net operating losses of $1.4 million expire between December 31, 2017 and December 31, 2035. Our state incentive tax credit carryforwards of $1.7 million expire between December 31, 2018 and December 31, 2021. Management believes it is more likely than not that these deferred tax assets will be realized with the exception of $0.1 million related to state tax net operating losses, and $0.3 million related to state tax incentive credit carryforwards. Valuation allowances totaling $0.5 million have been established for each of these amounts. As of December 31, 2016 and December 31, 2015, the amount of unrecognized tax benefits was $1.8 million and $1.1 million, respectively. Of these amounts, our income tax provision would decrease $1.2 million and $0.7 million, respectively, if recognized. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2016 2015 Gross unrecognized tax benefits - beginning of the year $ 1,139 $ 1,065 Gross increases related to prior year tax positions 394 166 Gross increases related to current year tax positions 488 153 Lapse of applicable statute of limitations (189 ) (245 ) Gross unrecognized tax benefits - end of year $ 1,832 $ 1,139 We estimate it is reasonably possible that our reserve could either increase or decrease by up to $0.5 million during the next twelve months. We recognize interest expense and penalties related to income tax liabilities in our provision for income taxes. In our 2016 provision for income taxes we recognized approximately fifteen thousand dollars of expense for combined income tax interest and income tax penalty. In 2016, we were selected for examinations by the IRS for our 2014 tax year, by California for our 2012 and 2013 tax years, by New York for our 2012 through 2014 tax years, and by Ohio for our 2014 and 2015 tax years. The IRS and California examinations are ongoing. The New York audit was settled for approximately sixteen thousand dollars while the Ohio audit closed with no changes. In addition to the audits that are ongoing, tax years 2012 through 2015 generally remain open to examination by the major jurisdictions to which we are subject. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 8. Fair Value Measurement The carrying value of cash and cash equivalents, accounts receivable, accounts payable and long-term debt materially approximated fair value as of December 31, 2016 and 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 December 31, 2016 and 2015, our cash and temporary investments were with high quality financial institutions in (DDAs) Demand Deposit Accounts and Savings Accounts. Restricted investments included $20.9 million and $21.1 million as of December 31, 2016 and 2015, respectively, of 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. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | NOTE 9. Property and Equipment Property and equipment consist of the following (in thousands): December 31, 2016 2015 Land $ 24,708 $ 9,855 Building and improvements 36,269 35,267 Leasehold improvements 5,016 4,419 Computer equipment and software 91,302 77,887 Furniture and equipment 13,852 13,260 Transportation equipment 472,634 405,322 Construction in process 450 - 644,231 546,010 Less: Accumulated depreciation and amortization (205,637 ) (171,163 ) Property and Equipment, net $ 438,594 $ 374,847 The increase in transportation equipment to $472.6 million in 2016 from $405.3 million in 2015 was due primarily to the purchase of containers. The increase in computer software and hardware to $91.3 million in 2016 from $77.9 million in 2015 was related to our transportation management and human resource systems. Included in the transportation equipment is a capital lease obligation entered into for $26.4 million in 2011. The balances as of December 31, 2016 and 2015, net of accumulated amortization, were $12.3 million and $14.7 million, respectively. Depreciation and amortization expense related to property and equipment was $43.4 million, $35.9 million and $28.3 million for 2016, 2015 and 2014, respectively, which includes amortization expense associated with a capital lease of $2.3 million for 2016 and $2.6 million for both 2015 and 2014. This amortization expense is included in transportation costs. Transportation equipment depreciation is included in transportation costs. |
Long-Term Debt and Financing Ar
Long-Term Debt and Financing Arrangements | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Financing Arrangements | NOTE 10. Long-Term Debt and Financing Arrangements In December 2013, we amended our Credit Agreement to reduce the interest rate and commitment fees and extend the term until December 2018. The maximum unsecured borrowing capacity remained at $50.0 million. The interest rate under the Credit Agreement ranges from LIBOR plus 1.00% to 1.75% or Prime to Prime plus 0.75%. The commitment fees charged on the unused line of credit are between 0.10% and 0.25% per annum. The financial covenants require a total leverage ratio of not more than 3.0 to 1.0 and an interest coverage ratio of not less than 2.0 to 1.0. We have standby letters of credit that expire in 2017. As of December 31, 2016, our letters of credit were $11.8 million. Our unused and available borrowings under our bank revolving line of credit were $38.2 million as of December 31, 2016 and $41.8 million as of December 31, 2015. We were in compliance with our debt covenants as of December 31, 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. Our outstanding debt is as follows (in thousands): Period Ended December 31, December 31, 2016 2015 Secured Equipment Notes due on various dates in 2021 with monthly principal and interest payments between $0.01 million and $0.3 million commencing on various dates in 2016 and 2017; interest is paid monthly at a fixed annual rate between 2.04% and 2.96% $ 59,836 $ - 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% 48,633 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; interest is paid monthly at a fixed annual rate between 1.87% and 2.24% 49,464 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% 2,759 4,612 160,692 133,304 Less current portion (45,163 ) (32,409 ) Total long-term debt $ 115,529 $ 100,895 Aggregate principal payments, in thousands, due subsequent to December 31, 2016, are as follows: 2017 $ 45,163 2018 44,466 2019 38,187 2020 22,677 2021 10,199 $ 160,692 In 2011, we entered into a lease agreement for 3,126 chassis for a period of 10 years. We are accounting for this lease as a capital lease. Interest on this capital lease obligation is based on interest rates that approximate currently available interest rates; therefore, indebtedness under this capital lease obligation approximates fair value. We paid interest of $0.6 million, $0.7 million and $0.8 million in 2016, 2015 and 2014, respectively, related to this capital lease. |
Leases, User Charges and Commit
Leases, User Charges and Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Leases, User Charges and Commitments | NOTE 11. Leases, User Charges and Commitments Minimum annual capital and operating lease payments, as of December 31, 2016, under non-cancelable leases, principally for containers, chassis, other equipment and real estate, as well as other commitments are payable as follows (in thousands): Future Payments Due: Operating Leases and Capital Other Lease Commitments Total 2017 $ 3,167 $ 8,998 $ 12,165 2018 3,167 7,311 10,478 2019 3,167 5,502 8,669 2020 3,176 5,274 8,450 2021 1,840 5,402 7,242 2022 and thereafter - 7,489 7,489 $ 14,517 $ 39,976 $ 54,493 Less: Imputed interest (1,244 ) Net capital lease liability $ 13,273 Total rental expense included in general and administrative expense, which relates primarily to real estate, was approximately $8.3 million in 2016, $8.0 million in 2015 and $8.1 million in 2014. Many of the real estate leases contain renewal options and escalation clauses which require payments of additional rent to the extent of increases in the related operating costs. We straight-line rental expense in accordance with the FASB guidance in the Leases Topic of the Codification. We incur rental expense for our leased containers, tractors and trailers that are included in transportation costs and totaled $3.6 million, $11.9 million, and $13.1 million for 2016, 2015 and 2014, respectively. We incur user charges for use of a fleet of rail owned chassis, chassis under capital lease and dedicated rail owned containers on the Union Pacific and Norfolk Southern railroads which are included in transportation costs. Such charges were $73.7 million, $74.3 million and $67.8 million for 2016, 2015 and 2014, respectively. We have the ability to return the majority of the containers and pay for the rail owned chassis only when we are using them under these agreements. As a result, no minimum commitments related to these rail owned chassis and containers have been included in the table above. In addition to the commitments above, in November 2016, we committed to acquire 4,000 53’ containers. We expect the total purchase price of these containers to be approximately $40 million. We expect to take delivery of the equipment between February and November of 2017. We are evaluating whether we finance the containers with a lease or debt. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2016 | |
Guarantees [Abstract] | |
Guarantees | NOTE 12. 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 $1.4 million and $10.3 million as of December 31, 2016 and 2015, respectively. The potential maximum exposure represents the amount of the remaining lease payments on all outstanding guaranteed leases as of December 31, 2016 and 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 or continue to operate the leased tractor in our company fleet. There were no material defaults during the years ended December 31, 2016 and 2015 and no potential material defaults. We had a liability of approximately nine thousand dollars at December 31, 2016 and $0.1 million as of 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. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Plans | NOTE 13. Stock-Based Compensation Plans In 1996, we adopted a Long-Term Incentive Plan (the “1996 Incentive Plan”). The number of shares of Class A Common Stock reserved for issuance under the 1996 Incentive Plan was 1,800,000. In 1997, we adopted a second Long-Term Incentive Plan (the “1997 Incentive Plan”). The number of shares of Class A Common Stock reserved for issuance under the 1997 Incentive Plan was 600,000. In 1999 we adopted a third Long-Term Incentive Plan (the “1999 Incentive Plan”). The number of shares of Class A Common Stock reserved for issuance under the 1999 Incentive Plan was 2,400,000. In 2002, we adopted a fourth Long-Term Incentive Plan (the “2002 Incentive Plan”). The number of shares of Class A Common Stock reserved for issuance under the 2002 Incentive Plan was 2,400,000. In 2003, we amended our 2002 Incentive Plan to add an additional 2,000,000 shares of Class A Common Stock that are reserved for issuance. In 2007, we amended our 2002 Incentive Plan to add an additional 1,000,000 shares of Class A Common Stock that are reserved for issuance. Under the 2002 Incentive Plan, stock options, stock appreciation rights, restricted stock, restricted stock units and performance units may be granted for the purpose of attracting and motivating our key employees and non-employee directors. We have not granted any stock options since 2003 and have no stock options outstanding. Restricted stock vests over a three to five year period. As of December 31, 2016, 995,093 shares were available for future grant. Share-based compensation expense for 2016, 2015 and 2014 was $8.5 million, $7.8 million and $8.3 million or $5.2 million, $5.0 million and $5.2 million, net of taxes, respectively. Intrinsic value for stock options is defined as the difference between the current market value and the grant price. There were no options exercised during the year ended December 31, 2016, 2015 and 2014. The following table summarizes the non-vested restricted stock activity for the year ended December 31, 2016: Weighted Average Grant Date Non-vested restricted stock Shares Fair Value Non-vested January 1, 2016 696,097 $ 37.02 Granted 420,368 $ 33.46 Vested (219,951) $ 36.34 Forfeited (115,574) $ 35.75 Non-vested at December 31, 2016 780,940 $ 35.48 The following table summarizes the restricted stock granted during the respective years: Restricted stock grants 2016 2015 2014 Employees 394,243 316,531 273,910 Outside directors 26,125 22,000 20,000 Total 420,368 338,531 293,910 Weighted average grant date fair value $ 33.46 $ 37.60 $ 39.66 Vesting period 3-5 years 3-5 years 3-5 years The fair value of non-vested restricted stock is equal to the market price of our stock at the date of grant. The total fair value of restricted shares vested during the years ended December 31, 2016, 2015 and 2014 was $7.5 million, $8.7 million and $9.4 million, respectively. As of December 31, 2016, there was $20.8 million of unrecognized compensation cost related to non-vested share-based compensation that is expected to be recognized over a weighted average period of 2.98 years. During January 2017, we granted 324,797 shares of restricted stock to certain employees and 27,500 shares of restricted stock to outside directors with a weighted average grant date fair value of $43.75. The stock vests over a three to five year period. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 14. Employee Benefit Plans We have one profit-sharing plan as of December 31, 2016, 2015 and 2014, under section 401(k) of the Internal Revenue Code. At our discretion, we partially match qualified contributions made by employees to the plan. We incurred expense of $2.4 million related to this plan in 2016 and $1.9 million of expense in both 2015 and 2014. In January 2005, we established the Hub Group, Inc. Nonqualified Deferred Compensation Plan (the “Plan”) to provide added incentive for the retention of certain key employees. Under the Plan, participants can elect to defer certain compensation. Accounts will grow on a tax-deferred basis to the participant. Restricted investments included in the Consolidated Balance Sheets represent the fair value of the mutual funds and other security investments related to the Plan as of December 31, 2016 and 2015. Both realized and unrealized gains and losses are included in income and expense and offset the change in the deferred compensation liability. We provide a 50% match on the first 6% of employee compensation deferred under the Plan, with a maximum match equivalent to 3% of base salary. In addition, we have a legacy deferred compensation plan. There are no new contributions being made into this legacy plan. We incurred expense of $0.3 million per year related to the employer match for these plans in 2016, 2015 and 2014. The liabilities related to these plans as of December 31, 2016 and 2015 were $21.1 million and $21.3 million, respectively. |
Legal Matters
Legal Matters | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Matters | NOTE 15. 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 September 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 and 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 and it was denied with respect to federal preemption and choice of law. On August 11, 2016, Plaintiffs filed a motion to clarify whether the Court’s dismissal of the claims of all purported class members who signed settlement agreements was with or without prejudice and, if the dismissal was with prejudice, Plaintiffs moved the Court to revise and reconsider the order. Plaintiffs’ motion to clarify is fully briefed and the parties are awaiting a decision by the Court. Adame, Et Al. v Hub Group, Inc., Et Al. 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 several motions in state court, asking the court to dismiss and/or stay the Plaintiffs’ suit for various reasons. On July 11, 2016, Defendants filed several motions in state court, asking the court to dismiss and/or stay the Plaintiffs’ suit for various reasons. During a hearing on October 5, 2016, the judge issued an oral tentative ruling stating that the choice of forum provision was unenforceable. On Defendants’ motion to dismiss the individual defendants, the court allowed for supplemental briefing for additional arguments regarding individual liability under PAGA. The court did not reach a decision regarding the motion to stay pending the outcome in Robles. Plaintiffs filed their supplemental brief on November 9, 2016 to which Defendants responded on December 6, 2016. The court had scheduled a hearing for January 19, 2017, which was continued until February 21, 2017. 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, Hub Group Trucking 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. The parties agreed to stay all proceedings in Illinois and Tennessee state court until the federal court jurisdiction question is decided. On October 26, 2016, Lubinski filed a motion to dismiss for lack of federal subject-matter jurisdiction and a motion for leave to file an amended complaint, attempting to “clarify” the putative class definition and arguing that the Class Action Fairness Act’s exceptions to jurisdiction apply. Hub Group Trucking filed its response to the motion to dismiss for lack of subject-matter jurisdiction on November 29, 2016, and Lubinski filed his reply on December 13, 2016. On January 3, 2017, the Court held a hearing on Lubinski’s motion to dismiss. On January 9, 2017, the Court ordered supplemental briefing on the citizenship of the putative class as of the date the complaint was filed in September 2014. 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. |
Stock Buy Back Plans
Stock Buy Back Plans | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stock Buy Back Plans | NOTE 16. Stock Buy Back Plans On February 2, 2016, our Board of Directors authorized the purchase of up to $100 million of our Class A Common Stock. This authorization expired on December 31, 2016. We purchased 2,672,227 shares under this authorization during the year ended December 31, 2016, completing the authorization. We purchased 73,546 shares for $2.5 million and 77,732 shares for $2.9 million during the years ended December 31, 2016 and 2015, respectively, related to employee withholding upon vesting of restricted stock. The following table displays the number of shares purchased during 2016 and the maximum value of shares that may yet be purchased under the plan: Maximum Value of Total Total Number of Shares that May Yet Number of Average Shares Purchased as Be Purchased Under Shares Price Paid Part of Publicly the Plan Purchased Per Share Announced Plan (in 000’s) January 1 to January 31 - $ - - $ 100,000 February 1 to February 28 943,983 $ 33.97 943,983 $ 67,932 March 1 to March 31 269,099 $ 38.27 269,099 $ 57,632 April 1 to April 30 454,729 $ 38.78 454,729 $ 40,000 May 1 to May 31 307,798 $ 38.34 307,798 $ 28,199 June 1 to June 30 330,265 $ 39.96 330,265 $ 15,000 July 1 to July 31 66,422 $ 41.03 66,422 $ 12,275 August 1 to August 31 299,931 $ 40.92 299,931 $ - September 1 to September 30 - $ - - $ - October 1 to October 31 - $ - - $ - November 1 to November 30 - $ - - $ - December 1 to December 31 - $ - - $ - Total 2,672,227 $ 37.42 2,672,227 $ - This table excludes 73,546 shares we purchased for $2.5 million during the year ended December 31, 2016 related to employee withholding upon vesting of restricted stock. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | NOTE 17. Selected Quarterly Financial Data (Unaudited) The following table sets forth the selected quarterly financial data for each of the quarters in 2016 (in thousands, except per share amounts): Quarter Ended March 31, June 30, September 30, December 31, 2016 2016 2016 2016 Year Ended December 31, 2016: Revenue $ 805,859 $ 855,557 $ 932,814 $ 978,560 Gross margin 108,387 114,490 111,454 120,454 Operating income 28,843 34,297 29,855 30,839 Net income 17,965 20,671 17,924 18,244 Basic earnings per share $ 0.51 $ 0.61 $ 0.54 $ 0.55 Diluted earnings per share $ 0.51 $ 0.61 $ 0.54 $ 0.55 The following table sets forth the selected quarterly financial data for each of the quarters in 2015 (in thousands, except per share amounts): Quarter Ended March 31, June 30, September 30, December 31, 2015 2015 2015 2015 Year Ended December 31, 2015: Revenue $ 835,941 $ 899,513 $ 899,869 $ 890,272 Gross margin 89,128 101,729 105,064 116,774 Operating income 18,795 29,476 33,418 35,341 Net income 10,276 18,467 19,832 22,374 Basic earnings per share $ 0.28 $ 0.51 $ 0.55 $ 0.63 Diluted earnings per share $ 0.28 $ 0.51 $ 0.55 $ 0.63 |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2016 | |
Valuation And Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II HUB GROUP, INC. VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Allowance for uncollectible trade accounts Balance at Charged to Charged to Balance at Year Ended Beginning of Costs & Other End of December 31: Year Expenses Accounts (1) Deductions (2) Year 2016 $ 5,215,000 $ 90,000 $ 146,000 $ (40,000 ) $ 5,411,000 2015 $ 6,990,000 $ 270,000 $ (2,037,000 ) $ (8,000 ) $ 5,215,000 2014 $ 7,446,000 $ 129,000 $ (565,000 ) $ (20,000 ) $ 6,990,000 Deferred tax valuation allowance Balance at Charged to Balance at Year Ended Beginning of Costs & End of December 31: Year Expenses Year 2016 $ 108,000 $ 348,000 $ 456,000 2015 $ 108,000 $ - $ 108,000 2014 $ 108,000 $ - $ 108,000 (1) Expected customer account adjustments charged to revenue and write-offs, net of recoveries. (2) Represents bad debt recoveries. |
Description of Business and S25
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Business | Business : Hub Group, Inc. (“we”, “us” or “our”) provides intermodal transportation services utilizing primarily third party arrangements with railroads. Drayage can be provided by our subsidiary, Hub Group Trucking, Inc., or a third party company. We also arrange for transportation of freight by truck and perform logistics services. Transportation services are provided through our legacy business and our acquisition, Mode Transportation, LLC. We report two distinct business segments. The first segment is Mode, which includes the Mode business we acquired on April 1, 2011. The other segment is Hub, which is all business other than Mode. “Hub Group” includes both segments. |
Principles of Consolidation | Principles of Consolidation : The consolidated financial statements include our accounts and all entities in which we have more than a 50% equity ownership or otherwise exercise unilateral control. All significant intercompany balances and transactions have been eliminated. |
Cash and Cash Equivalents | Cash and Cash Equivalents : We consider as cash equivalents all highly liquid instruments with an original maturity of three months or less. As of December 31, 2016 and 2015, our cash and temporary investments were with high quality financial institutions in DDAs (Demand Deposit Accounts) and Savings Accounts. |
Accounts Receivable and Allowance for Uncollectible Accounts | Accounts Receivable and Allowance for Uncollectible Accounts: In the normal course of business, we extend credit to customers after a review of each customer’s credit history. An allowance for uncollectible trade accounts has been established through an analysis of the accounts receivable aging, an assessment of collectability based on historical trends and an evaluation based on current economic conditions. To be more specific, we reserve a portion of every account balance that has aged over one year, a portion of receivables for customers in bankruptcy and certain account balances specifically identified as uncollectible. On an annual basis, we perform a hindsight analysis on Hub and Mode separately to determine each segment’s experience in collecting account balances over one year old and account balances in bankruptcy. We then use this hindsight analysis to establish our reserves for receivables over one year and in bankruptcy. In establishing a reserve for certain account balances specifically identified as uncollectible, we consider the aging of the customer receivables, the specific details as to why the receivable has not been paid, the customer’s current and projected financial results, the customer’s ability to meet and sustain their financial commitments, the positive or negative effects of the current and projected industry outlook and the general economic conditions. The allowance for uncollectible accounts is reported on the balance sheet in net accounts receivable. Our reserve for uncollectible accounts was approximately $5.4 million and $5.2 million as of December 31, 2016 and 2015, respectively. Receivables are written off once collection efforts have been exhausted. Recoveries of receivables previously charged off are recorded when received. |
Property and Equipment | Property and Equipment : Property and equipment are stated at cost. Depreciation of property and equipment is computed using the straight-line method at rates adequate to depreciate the cost of the applicable assets over their expected useful lives: building and improvements, up to 40 years; leasehold improvements, the shorter of useful life or lease term; computer equipment and software, up to 10 years; furniture and equipment, up to 10 years; and transportation equipment up to 15 years. Direct costs related to internally developed software projects are capitalized and amortized over their expected useful life on a straight-line basis not to exceed 10 years. Interest is capitalized on qualifying assets under development for internal use. Maintenance and repairs are charged to operations as incurred and major improvements are capitalized. The cost of assets retired or otherwise disposed of and the accumulated depreciation thereon are removed from the accounts with any gain or loss realized upon sale or disposal charged or credited to operations. We review long-lived assets for impairment when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. In the event that the undiscounted future cash flows resulting from the use of the asset group is less than the carrying amount, an impairment loss equal to the excess of the assets carrying amount over its fair value, less cost to dispose, is recorded. |
Goodwill and Other Intangibles | Goodwill and Other Intangibles : Goodwill represents the excess of purchase price over the fair market value of net assets acquired in connection with our business combinations. Goodwill and intangible assets that have indefinite useful lives are not amortized but are subject to annual impairment tests. We test goodwill for impairment annually in the fourth quarter or when events or changes in circumstances indicate the carrying value of this asset might exceed the current fair value. We test goodwill for impairment at the reporting unit level. We assess qualitative factors such as current company performance and overall economic factors to determine if it is more-likely-than-not that the goodwill might be impaired and whether it is necessary to perform the quantitative goodwill impairment test. In the quantitative goodwill test, a company compares the carrying value of a reporting unit to its fair value. If the carrying value of the reporting unit exceeds the estimated fair value, a second step is performed, which compares the implied fair value of goodwill to the carrying value, to determine the amount of impairment. In 2016 and 2015, we performed the qualitative assessment on both the Hub and Mode reporting units and determined it was not, more-likely-than-not, that goodwill might be impaired. We evaluate the potential impairment of finite-lived acquired intangible assets when impairment indicators exist. If the carrying value is no longer recoverable based upon the undiscounted future cash flows of the asset, the amount of the impairment is the difference between the carrying amount and the fair value of the asset. |
Concentration of Credit Risk | Concentration of Credit Risk : Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We place our cash and temporary investments with high quality financial institutions in DDAs (Demand Deposit Accounts) and Savings Accounts. We primarily serve customers located throughout the United States with no significant concentration in any one region. No one customer accounted for more than 10% of revenue in 2016, 2015 or 2014. We review a customer’s credit history before extending credit. In addition, we routinely assess the financial strength of our customers and, as a consequence, believe that our trade accounts receivable risk is limited. |
Revenue Recognition | Revenue Recognition : Revenue is recognized at the time 1) persuasive evidence of an arrangement exists, 2) services have been rendered, 3) the sales price is fixed and determinable and 4) collectability is reasonably assured. Revenue and related transportation costs are recognized based on relative transit time. Further, in most cases, we report our revenue on a gross basis because we are the primary obligor as we are responsible for providing the service desired by the customer. Our customers view us as responsible for fulfillment including the acceptability of the service. Services requirements may include, for example, on-time delivery, handling freight loss and damage claims, setting up appointments for pick-up and delivery and tracing shipments in transit. We have discretion in setting sales prices and as a result, the amount we earn varies. In addition, we have the discretion to select our vendors from multiple suppliers for the services ordered by our customers. Finally, we have credit risk for our receivables. These three factors, discretion in setting prices, discretion in selecting vendors and credit risk, further support reporting revenue on a gross basis for most of our revenue. |
Provision for Income Taxes | Provision for Income Taxes : Deferred income taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting using tax rates in effect for the years in which the differences are expected to reverse. We believe that it is more likely than not that our deferred tax assets will be realized based on future taxable income projections with two exceptions for which we have established valuation allowances. We have established valuation allowances of $0.1 million related to state tax net operating losses and $0.4 million related to state incentive tax credit carryforwards. In the event the probability of realizing the remaining deferred tax assets do not meet the more likely than not threshold in the future, a valuation allowance would be established for the deferred tax assets deemed unrecoverable. Tax liabilities are recorded when, in management’s judgment, a tax position does not meet the more likely than not threshold for recognition as prescribed by the guidance. For tax positions that meet the more likely than not threshold, a tax liability may be recorded depending on management’s assessment of how the tax position will ultimately be settled. We recognize interest expense and penalties related to income tax liabilities in our provision for income taxes. |
Earnings Per Common Share | Earnings Per Common Share : Basic earnings per common share are based on the average quarterly weighted average number of Class A and Class B shares of common stock outstanding. Diluted earnings per common share are adjusted for the assumed exercise of dilutive stock options and for restricted stock which are both computed using the treasury stock method. |
Stock Based Compensation | Stock Based Compensation: Share-based compensation includes the restricted stock awards expected to vest based on the grant date fair value. Compensation expense is amortized straight-line over the vesting period including an estimate of forfeitures and is included in salaries and benefits. We present excess tax benefits resulting from the exercise of share-based compensation as financing cash in-flows and as operating cash out-flows in the Consolidated Statements of Cash Flows. |
New Pronouncements | New Pronouncements: In May 2014, the 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. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued several amendments to the standard, including clarification on accounting for principal vs agent and identifying performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). We currently anticipate adopting the standard using the full retrospective method to restate each prior reporting period presented. Early application is permitted for annual reporting periods beginning after December 15, 2016. We plan to adopt this standard January 1, 2018, as required. While we are continuing to assess all potential impacts of the standard, other than additional disclosures, we do not anticipate that this standard will have a material impact on our consolidated financial statements. We have analyzed our revenue stream, began analysis of our current contracts and will continue to analyze these contracts. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 explicitly requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard is effective for all entities in the first annual period ending after December 15, 2016. We adopted this standard for the year ended December 31, 2016 and it did not have an impact on our financial condition, results of operations and cash flows. In November 2015, the 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 the impacts the adoption of this accounting guidance will have on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , In 2016, the FASB issued new guidance that requires credit losses on financial assets measured at amortized cost basis to be presented at the net amount expected to be collected, not based on incurred losses . In 2016, the FASB issued new guidance which clarifies the classification of certain cash receipts and cash payments in the statement of cash flows, including debt prepayment or extinguishment costs, settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements. |
Use of Estimates | Use of Estimates : The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Significant estimates include the allowance for doubtful accounts, exposure under our insurance and claims policies and useful lives of equipment. Actual results could differ from those estimates. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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): Years Ended, December 31, 2016 2015 2014 Net income for basic and diluted earnings per share $ 74,805 $ 70,949 $ 51,558 Weighted average shares outstanding - basic 33,841 35,876 36,590 Dilutive effect of stock options and restricted stock 108 92 142 Weighted average shares outstanding - diluted 33,949 35,968 36,732 Earnings per share - basic $ 2.21 $ 1.98 $ 1.41 Earnings per share - diluted $ 2.20 $ 1.97 $ 1.40 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of Operating Results | The following is a summary of operating results, which includes the results of operations of the Mode segment for the years ended December 31, 2016, 2015 and 2014, and certain other financial data for our business segments (in thousands): Twelve Months Twelve Months Ended December 31, 2016 Ended December 31, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Revenue $ 2,734,541 $ 948,735 $ (110,486 ) $ 3,572,790 $ 2,679,318 $ 928,661 $ (82,384 ) $ 3,525,595 Transportation costs 2,404,946 823,545 (110,486 ) 3,118,005 2,385,197 810,087 (82,384 ) 3,112,900 Gross margin 329,595 125,190 - 454,785 294,121 118,574 - 412,695 Costs and expenses: Salaries and benefits 165,136 15,323 - 180,459 143,993 14,945 - 158,938 Agent fees and commissions 66 72,830 - 72,896 56 68,668 - 68,724 General and administrative 60,811 7,819 - 68,630 53,023 6,992 - 60,015 Depreciation and amortization 7,698 1,268 - 8,966 6,688 1,300 - 7,988 Total costs and expenses 233,711 97,240 - 330,951 203,760 91,905 - 295,665 Operating income $ 95,884 $ 27,950 $ - $ 123,834 90,361 26,669 - 117,030 Capital expenditures $ 106,316 $ 1,093 $ - $ 107,409 $ 79,860 $ 3,182 $ - $ 83,042 Twelve Months Ended December 31, 2014 Inter- Hub Segment Group Hub Mode Elims Total Revenue $ 2,722,799 $ 931,131 $ (82,804 ) $ 3,571,126 Transportation costs 2,461,144 822,351 (82,804 ) 3,200,691 Gross margin 261,655 108,780 - 370,435 Costs and expenses: Salaries and benefits 122,097 14,383 - 136,480 Agent fees and commissions 45 61,996 - 62,041 General and administrative 51,108 6,906 - 58,014 Depreciation and amortization 6,238 1,561 - 7,799 Driver settelments and related costs 10,343 - - 10,343 Impairment of software 11,881 - - 11,881 Total costs and expenses 201,712 84,846 - 286,558 Operating income $ 59,943 $ 23,934 $ - $ 83,877 Capital expenditures $ 118,640 $ 531 $ - $ 119,171 |
Schedule of Assets | As of December 31, 2016 As of December 31, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Total assets $ 1,178,110 $ 191,374 $ (9,225 ) $ 1,360,259 $ 1,127,042 $ 181,514 $ (7,410 ) $ 1,301,146 Goodwill 232,987 29,389 - 262,376 233,205 29,389 - 262,594 |
Summary of Revenue by Segment and Business Line | The following tables summarize our revenue by segment and business line (in thousands): Twelve Months Twelve Months Ended December 31, 2016 Ended December 31, 2015 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Intermodal $ 1,785,865 $ 486,758 $ (81,556 ) $ 2,191,067 $ 1,792,046 $ 483,910 $ (78,688 ) $ 2,197,268 Truck brokerage 391,901 308,055 (1,456 ) 698,500 355,402 314,498 (1,908 ) 667,992 Logistics 556,775 153,922 (27,474 ) 683,223 531,870 130,253 (1,788 ) 660,335 Total revenue $ 2,734,541 $ 948,735 $ (110,486 ) $ 3,572,790 $ 2,679,318 $ 928,661 $ (82,384 ) $ 3,525,595 Twelve Months Ended December 31, 2014 Inter- Hub Segment Group Hub Mode Elims Total Intermodal $ 1,815,842 $ 466,859 $ (79,406 ) $ 2,203,295 Truck brokerage 338,590 335,587 (946 ) 673,231 Logistics 568,367 128,685 (2,452 ) 694,600 Total revenue $ 2,722,799 $ 931,131 $ (82,804 ) $ 3,571,126 |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill | The following table presents the carrying amount of goodwill (in thousands): Hub Group Hub Mode Total Balance at January 1, 2015 $ 233,424 $ 29,389 $ 262,813 Other (219 ) - (219 ) Balance at December 31, 2015 233,205 29,389 262,594 Other (218 ) - (218 ) Balance at December 31, 2016 $ 232,987 $ 29,389 $ 262,376 |
Components of Other Intangible Assets | The components of the “Other intangible assets” are as follows (in thousands): Net Gross Accumulated Carrying As of December 31, 2016: Amount Amortization Value Life Hub Customer relationships $ 5,181 $ (3,792 ) $ 1,389 7-15 years Mode Agency/customer relationships $ 15,362 $ (4,907 ) $ 10,455 18 years Hub Group Total $ 20,543 $ (8,699 ) $ 11,844 Net Gross Accumulated Carrying As of December 31, 2015: Amount Amortization Value Life Hub Customer relationships $ 5,181 $ (3,350 ) $ 1,831 7-15 years Mode Agency/customer relationships $ 15,362 $ (4,054 ) $ 11,308 18 years Hub Group Total $ 20,543 $ (7,404 ) $ 13,139 |
Amortization Expense | Amortization expense for the next five years is as follows (in thousands): Hub Group Hub Mode Total 2017 $ 442 $ 853 $ 1,295 2018 395 853 1,248 2019 255 853 1,108 2020 255 853 1,108 2021 42 853 895 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Effective Tax Rate to Federal Statutory Tax Rate | The following is a reconciliation of our effective tax rate to the federal statutory tax rate: Years Ended December 31, 2016 2015 2014 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 2.6 2.4 2.9 State incentives (0.2 ) (0.5) (0.8 ) State law changes 0.3 (0.9) (0.9 ) Nondeductible expenses 0.7 0.4 0.9 Other - - (0.1 ) Net effective rate 38.4 % 36.4 % 37.0 % |
Summary of Provision for Income Taxes | The following is a summary of our provision for income taxes (in thousands): Years Ended December 31, 2016 2015 2014 Current Federal $ 30,324 $ 21,363 $ 5,939 State and local 3,296 2,900 445 Foreign 108 284 249 33,728 24,547 6,633 Deferred Federal 11,981 16,538 23,600 State and local 971 (346 ) 191 Foreign (64 ) (106 ) (115 ) 12,888 16,086 23,676 Total provision $ 46,616 $ 40,633 $ 30,309 |
Summary of Deferred Tax Assets and Liabilities Presented as Noncurrent | In the following summary of our deferred tax assets and liabilities (in thousands), however, we are presenting all the deferred tax asset and liability balances as of both December 31, 2016 and December 31, 2015 as noncurrent for better year over year comparability: December 31, 2016 2015 Accrued compensation 20,651 18,448 Other reserves 8,580 4,319 Tax credit carryforwards 1,694 1,257 Operating loss carryforwards 1,399 1,914 Total gross deferred income taxes 32,324 25,938 Valuation allowances (456 ) (108 ) Total deferred tax assets 31,868 25,830 Prepaids (3,401 ) (3,448 ) Other receivables (3,051 ) (4,493 ) Property and equipment (105,905 ) (87,148 ) Goodwill (84,170 ) (82,511 ) Total deferred tax liabilities (196,527 ) (177,600 ) Total deferred taxes $ (164,659 ) $ (151,770 ) |
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2016 2015 Gross unrecognized tax benefits - beginning of the year $ 1,139 $ 1,065 Gross increases related to prior year tax positions 394 166 Gross increases related to current year tax positions 488 153 Lapse of applicable statute of limitations (189 ) (245 ) Gross unrecognized tax benefits - end of year $ 1,832 $ 1,139 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following (in thousands): December 31, 2016 2015 Land $ 24,708 $ 9,855 Building and improvements 36,269 35,267 Leasehold improvements 5,016 4,419 Computer equipment and software 91,302 77,887 Furniture and equipment 13,852 13,260 Transportation equipment 472,634 405,322 Construction in process 450 - 644,231 546,010 Less: Accumulated depreciation and amortization (205,637 ) (171,163 ) Property and Equipment, net $ 438,594 $ 374,847 |
Long-Term Debt and Financing 31
Long-Term Debt and Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | Our outstanding debt is as follows (in thousands): Period Ended December 31, December 31, 2016 2015 Secured Equipment Notes due on various dates in 2021 with monthly principal and interest payments between $0.01 million and $0.3 million commencing on various dates in 2016 and 2017; interest is paid monthly at a fixed annual rate between 2.04% and 2.96% $ 59,836 $ - 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% 48,633 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; interest is paid monthly at a fixed annual rate between 1.87% and 2.24% 49,464 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% 2,759 4,612 160,692 133,304 Less current portion (45,163 ) (32,409 ) Total long-term debt $ 115,529 $ 100,895 |
Summary of Aggregate Principal Payments | Aggregate principal payments, in thousands, due subsequent to December 31, 2016, are as follows: 2017 $ 45,163 2018 44,466 2019 38,187 2020 22,677 2021 10,199 $ 160,692 |
Leases, User Charges and Comm32
Leases, User Charges and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Future Payments Due | Future Payments Due: Operating Leases and Capital Other Lease Commitments Total 2017 $ 3,167 $ 8,998 $ 12,165 2018 3,167 7,311 10,478 2019 3,167 5,502 8,669 2020 3,176 5,274 8,450 2021 1,840 5,402 7,242 2022 and thereafter - 7,489 7,489 $ 14,517 $ 39,976 $ 54,493 Less: Imputed interest (1,244 ) Net capital lease liability $ 13,273 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Non-Vested Restricted Stock Activity | The following table summarizes the non-vested restricted stock activity for the year ended December 31, 2016: Weighted Average Grant Date Non-vested restricted stock Shares Fair Value Non-vested January 1, 2016 696,097 $ 37.02 Granted 420,368 $ 33.46 Vested (219,951) $ 36.34 Forfeited (115,574) $ 35.75 Non-vested at December 31, 2016 780,940 $ 35.48 |
Schedule of Restricted Stock Granted | The following table summarizes the restricted stock granted during the respective years: Restricted stock grants 2016 2015 2014 Employees 394,243 316,531 273,910 Outside directors 26,125 22,000 20,000 Total 420,368 338,531 293,910 Weighted average grant date fair value $ 33.46 $ 37.60 $ 39.66 Vesting period 3-5 years 3-5 years 3-5 years |
Stock Buy Back Plans (Tables)
Stock Buy Back Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Number of Shares Purchased and Maximum Value of Shares That yet be Purchased Under Plan | The following table displays the number of shares purchased during 2016 and the maximum value of shares that may yet be purchased under the plan: Maximum Value of Total Total Number of Shares that May Yet Number of Average Shares Purchased as Be Purchased Under Shares Price Paid Part of Publicly the Plan Purchased Per Share Announced Plan (in 000’s) January 1 to January 31 - $ - - $ 100,000 February 1 to February 28 943,983 $ 33.97 943,983 $ 67,932 March 1 to March 31 269,099 $ 38.27 269,099 $ 57,632 April 1 to April 30 454,729 $ 38.78 454,729 $ 40,000 May 1 to May 31 307,798 $ 38.34 307,798 $ 28,199 June 1 to June 30 330,265 $ 39.96 330,265 $ 15,000 July 1 to July 31 66,422 $ 41.03 66,422 $ 12,275 August 1 to August 31 299,931 $ 40.92 299,931 $ - September 1 to September 30 - $ - - $ - October 1 to October 31 - $ - - $ - November 1 to November 30 - $ - - $ - December 1 to December 31 - $ - - $ - Total 2,672,227 $ 37.42 2,672,227 $ - |
Selected Quarterly Financial 35
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Selected Quarterly Financial Data | The following table sets forth the selected quarterly financial data for each of the quarters in 2016 (in thousands, except per share amounts): Quarter Ended March 31, June 30, September 30, December 31, 2016 2016 2016 2016 Year Ended December 31, 2016: Revenue $ 805,859 $ 855,557 $ 932,814 $ 978,560 Gross margin 108,387 114,490 111,454 120,454 Operating income 28,843 34,297 29,855 30,839 Net income 17,965 20,671 17,924 18,244 Basic earnings per share $ 0.51 $ 0.61 $ 0.54 $ 0.55 Diluted earnings per share $ 0.51 $ 0.61 $ 0.54 $ 0.55 The following table sets forth the selected quarterly financial data for each of the quarters in 2015 (in thousands, except per share amounts): Quarter Ended March 31, June 30, September 30, December 31, 2015 2015 2015 2015 Year Ended December 31, 2015: Revenue $ 835,941 $ 899,513 $ 899,869 $ 890,272 Gross margin 89,128 101,729 105,064 116,774 Operating income 18,795 29,476 33,418 35,341 Net income 10,276 18,467 19,832 22,374 Basic earnings per share $ 0.28 $ 0.51 $ 0.55 $ 0.63 Diluted earnings per share $ 0.28 $ 0.51 $ 0.55 $ 0.63 |
Description of Business and S36
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Reporting business segments | Segment | 2 | ||
Reserve for uncollectible accounts | $ 5.4 | $ 5.2 | |
State tax net operating losses, valuation allowance | 0.1 | ||
State [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Incentive tax credit carryforwards | $ 0.4 | ||
Leasehold Improvements [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment estimated life, description | The shorter of useful life or lease term. | ||
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Ownership percentage | 50.00% | ||
Maximum [Member] | Customer Concentration Risk [Member] | Revenue [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Minimum percentage of revenue accounted for by one customer | 10.00% | 10.00% | 10.00% |
Maximum [Member] | Building And Improvement [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment estimated life | 40 years | ||
Maximum [Member] | Computer Equipment and Software [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment estimated life | 10 years | ||
Maximum [Member] | Furniture and Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment estimated life | 10 years | ||
Maximum [Member] | Transportation Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment estimated life | 15 years | ||
Maximum [Member] | Software Development [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 10 years |
Capital Structure - Additional
Capital Structure - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Class B Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock, rights to vote | 84 | |
Class A Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock, rights to vote | one |
Reconciliation of Earnings Per
Reconciliation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net income for basic and diluted earnings per share | $ 18,244 | $ 17,924 | $ 20,671 | $ 17,965 | $ 22,374 | $ 19,832 | $ 18,467 | $ 10,276 | $ 74,805 | $ 70,949 | $ 51,558 |
Weighted average shares outstanding - basic | 33,841 | 35,876 | 36,590 | ||||||||
Dilutive effect of stock options and restricted stock | 108 | 92 | 142 | ||||||||
Weighted average shares outstanding - diluted | 33,949 | 35,968 | 36,732 | ||||||||
Earnings per share - basic | $ 0.55 | $ 0.54 | $ 0.61 | $ 0.51 | $ 0.63 | $ 0.55 | $ 0.51 | $ 0.28 | $ 2.21 | $ 1.98 | $ 1.41 |
Earnings per share - diluted | $ 0.55 | $ 0.54 | $ 0.61 | $ 0.51 | $ 0.63 | $ 0.55 | $ 0.51 | $ 0.28 | $ 2.20 | $ 1.97 | $ 1.40 |
Impairment of Software - Additi
Impairment of Software - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Asset Impairment Charges [Abstract] | |
Software development cost | $ 11,881 |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016Segment | |
Segment Reporting Information [Line Items] | |
Reporting business segments | 2 |
Number of railheads | one or more |
Mode LLC [Member] | |
Segment Reporting Information [Line Items] | |
Business acquisition, date | Apr. 1, 2011 |
Summary of Operating Results (D
Summary of Operating Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 978,560 | $ 932,814 | $ 855,557 | $ 805,859 | $ 890,272 | $ 899,869 | $ 899,513 | $ 835,941 | $ 3,572,790 | $ 3,525,595 | $ 3,571,126 |
Transportation costs | 3,118,005 | 3,112,900 | 3,200,691 | ||||||||
Gross margin | 120,454 | 111,454 | 114,490 | 108,387 | 116,774 | 105,064 | 101,729 | 89,128 | 454,785 | 412,695 | 370,435 |
Costs and expenses: | |||||||||||
Salaries and benefits | 180,459 | 158,938 | 136,480 | ||||||||
Agent fees and commissions | 72,896 | 68,724 | 62,041 | ||||||||
General and administrative | 68,630 | 60,015 | 58,014 | ||||||||
Depreciation and amortization | 8,966 | 7,988 | 7,799 | ||||||||
Driver settlements and related costs | 10,343 | ||||||||||
Impairment of software | 11,881 | ||||||||||
Total costs and expenses | 330,951 | 295,665 | 286,558 | ||||||||
Operating income | $ 30,839 | $ 29,855 | $ 34,297 | $ 28,843 | $ 35,341 | $ 33,418 | $ 29,476 | $ 18,795 | 123,834 | 117,030 | 83,877 |
Capital expenditures | 107,409 | 83,042 | 119,171 | ||||||||
Operating Segments [Member] | Hub [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,734,541 | 2,679,318 | 2,722,799 | ||||||||
Transportation costs | 2,404,946 | 2,385,197 | 2,461,144 | ||||||||
Gross margin | 329,595 | 294,121 | 261,655 | ||||||||
Costs and expenses: | |||||||||||
Salaries and benefits | 165,136 | 143,993 | 122,097 | ||||||||
Agent fees and commissions | 66 | 56 | 45 | ||||||||
General and administrative | 60,811 | 53,023 | 51,108 | ||||||||
Depreciation and amortization | 7,698 | 6,688 | 6,238 | ||||||||
Driver settlements and related costs | 10,343 | ||||||||||
Impairment of software | 11,881 | ||||||||||
Total costs and expenses | 233,711 | 203,760 | 201,712 | ||||||||
Operating income | 95,884 | 90,361 | 59,943 | ||||||||
Capital expenditures | 106,316 | 79,860 | 118,640 | ||||||||
Operating Segments [Member] | Mode LLC [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 948,735 | 928,661 | 931,131 | ||||||||
Transportation costs | 823,545 | 810,087 | 822,351 | ||||||||
Gross margin | 125,190 | 118,574 | 108,780 | ||||||||
Costs and expenses: | |||||||||||
Salaries and benefits | 15,323 | 14,945 | 14,383 | ||||||||
Agent fees and commissions | 72,830 | 68,668 | 61,996 | ||||||||
General and administrative | 7,819 | 6,992 | 6,906 | ||||||||
Depreciation and amortization | 1,268 | 1,300 | 1,561 | ||||||||
Total costs and expenses | 97,240 | 91,905 | 84,846 | ||||||||
Operating income | 27,950 | 26,669 | 23,934 | ||||||||
Capital expenditures | 1,093 | 3,182 | 531 | ||||||||
Intersegment Elims [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | (110,486) | (82,384) | (82,804) | ||||||||
Transportation costs | $ (110,486) | $ (82,384) | $ (82,804) |
Schedule of Assets (Detail)
Schedule of Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Total assets | $ 1,360,259 | $ 1,301,146 | |
Goodwill | 262,376 | 262,594 | $ 262,813 |
Hub [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 232,987 | 233,205 | $ 233,424 |
Operating Segments [Member] | Hub [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,178,110 | 1,127,042 | |
Goodwill | 232,987 | 233,205 | |
Operating Segments [Member] | Mode LLC [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 191,374 | 181,514 | |
Goodwill | 29,389 | 29,389 | |
Intersegment Elims [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ (9,225) | $ (7,410) |
Summary of Revenue by Segment a
Summary of Revenue by Segment and Business Line (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 978,560 | $ 932,814 | $ 855,557 | $ 805,859 | $ 890,272 | $ 899,869 | $ 899,513 | $ 835,941 | $ 3,572,790 | $ 3,525,595 | $ 3,571,126 |
Intermodal [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,191,067 | 2,197,268 | 2,203,295 | ||||||||
Truck brokerage [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 698,500 | 667,992 | 673,231 | ||||||||
Logistics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 683,223 | 660,335 | 694,600 | ||||||||
Operating Segments [Member] | Hub [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,734,541 | 2,679,318 | 2,722,799 | ||||||||
Operating Segments [Member] | Mode LLC [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 948,735 | 928,661 | 931,131 | ||||||||
Operating Segments [Member] | Intermodal [Member] | Hub [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,785,865 | 1,792,046 | 1,815,842 | ||||||||
Operating Segments [Member] | Intermodal [Member] | Mode LLC [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 486,758 | 483,910 | 466,859 | ||||||||
Operating Segments [Member] | Truck brokerage [Member] | Hub [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 391,901 | 355,402 | 338,590 | ||||||||
Operating Segments [Member] | Truck brokerage [Member] | Mode LLC [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 308,055 | 314,498 | 335,587 | ||||||||
Operating Segments [Member] | Logistics [Member] | Hub [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 556,775 | 531,870 | 568,367 | ||||||||
Operating Segments [Member] | Logistics [Member] | Mode LLC [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 153,922 | 130,253 | 128,685 | ||||||||
Intersegment Elims [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | (110,486) | (82,384) | (82,804) | ||||||||
Intersegment Elims [Member] | Intermodal [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | (81,556) | (78,688) | (79,406) | ||||||||
Intersegment Elims [Member] | Truck brokerage [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | (1,456) | (1,908) | (946) | ||||||||
Intersegment Elims [Member] | Logistics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ (27,474) | $ (1,788) | $ (2,452) |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets [Line Items] | |||
Goodwill accumulated impairment loss | $ 0 | ||
Intangible assets, Amortization expense | $ 1,300,000 | $ 1,300,000 | $ 1,300,000 |
Hub [Member] | Weighted Average [Member] | |||
Intangible Assets [Line Items] | |||
Weighted average life of definite lived intangible assets | 3 years 7 months 6 days | ||
Mode [Member] | Weighted Average [Member] | |||
Intangible Assets [Line Items] | |||
Weighted average life of definite lived intangible assets | 12 years 3 months |
Carrying Amount of Goodwill (De
Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 262,594 | $ 262,813 |
Other | (218) | (219) |
Goodwill, Ending Balance | 262,376 | 262,594 |
Hub [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 233,205 | 233,424 |
Other | (218) | (219) |
Goodwill, Ending Balance | 232,987 | 233,205 |
Mode [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 29,389 | 29,389 |
Other | 0 | 0 |
Goodwill, Ending Balance | $ 29,389 | $ 29,389 |
Components of Other Intangible
Components of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other Intangible Assets [Line Items] | ||
Intangible Assets, Gross Amount | $ 20,543 | $ 20,543 |
Finite-lived intangible assets, Accumulated Amortization | (8,699) | (7,404) |
Intangible Assets, Net Carrying Value | 11,844 | 13,139 |
Hub [Member] | Customer Relationships [Member] | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | 5,181 | 5,181 |
Finite-lived intangible assets, Accumulated Amortization | (3,792) | (3,350) |
Finite-lived intangible assets, Net Carrying Value | $ 1,389 | $ 1,831 |
Hub [Member] | Customer Relationships [Member] | Minimum [Member] | ||
Other Intangible Assets [Line Items] | ||
Intangible assets estimated useful life | 7 years | 7 years |
Hub [Member] | Customer Relationships [Member] | Maximum [Member] | ||
Other Intangible Assets [Line Items] | ||
Intangible assets estimated useful life | 15 years | 15 years |
Mode [Member] | Agency/Customer Relationships [Member] | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 15,362 | $ 15,362 |
Finite-lived intangible assets, Accumulated Amortization | (4,907) | (4,054) |
Finite-lived intangible assets, Net Carrying Value | $ 10,455 | $ 11,308 |
Intangible assets estimated useful life | 18 years | 18 years |
Amortization Expense (Detail)
Amortization Expense (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2,017 | $ 1,295 |
2,018 | 1,248 |
2,019 | 1,108 |
2,020 | 1,108 |
2,021 | 895 |
Hub [Member] | |
Finite Lived Intangible Assets [Line Items] | |
2,017 | 442 |
2,018 | 395 |
2,019 | 255 |
2,020 | 255 |
2,021 | 42 |
Mode [Member] | |
Finite Lived Intangible Assets [Line Items] | |
2,017 | 853 |
2,018 | 853 |
2,019 | 853 |
2,020 | 853 |
2,021 | $ 853 |
Reconciliation of Effective Tax
Reconciliation of Effective Tax Rate to Federal Statutory Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 2.60% | 2.40% | 2.90% |
State incentives | (0.20%) | (0.50%) | (0.80%) |
State law changes | 0.30% | (0.90%) | (0.90%) |
Nondeductible expenses | 0.70% | 0.40% | 0.90% |
Other | (0.10%) | ||
Net effective rate | 38.40% | 36.40% | 37.00% |
Summary of Provision for Income
Summary of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current | |||
Federal | $ 30,324 | $ 21,363 | $ 5,939 |
State and local | 3,296 | 2,900 | 445 |
Foreign | 108 | 284 | 249 |
Current income tax expense, total | 33,728 | 24,547 | 6,633 |
Deferred | |||
Federal | 11,981 | 16,538 | 23,600 |
State and local | 971 | (346) | 191 |
Foreign | (64) | (106) | (115) |
Deferred income tax expense, total | 12,888 | 16,086 | 23,676 |
Total provision | $ 46,616 | $ 40,633 | $ 30,309 |
Summary of Deferred Tax Assets
Summary of Deferred Tax Assets and Liabilities Presented as Noncurrent (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Accrued compensation | $ 20,651 | $ 18,448 |
Other reserves | 8,580 | 4,319 |
Tax credit carryforwards | 1,694 | 1,257 |
Operating loss carryforwards | 1,399 | 1,914 |
Total gross deferred income taxes | 32,324 | 25,938 |
Valuation allowances | (456) | (108) |
Total deferred tax assets | 31,868 | 25,830 |
Prepaids | (3,401) | (3,448) |
Other receivables | (3,051) | (4,493) |
Property and equipment | (105,905) | (87,148) |
Goodwill | (84,170) | (82,511) |
Total deferred tax liabilities | (196,527) | (177,600) |
Total deferred taxes | $ (164,659) | $ (151,770) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Operating loss carryforwards | $ 1,399 | $ 1,914 | |
State incentive tax credit carryforwards | 1,694 | 1,257 | |
Valuation allowances | 456 | 108 | |
Unrecognized tax benefits | 1,832 | 1,139 | $ 1,065 |
Potential increase (decrease) in income tax provision | 1,200 | $ 700 | |
Income tax interest and penalty recognized | 15 | ||
State [Member] | Net Operating Losses [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowances | 100 | ||
State [Member] | Tax Incentive Credit Carryforwards [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowances | $ 300 | ||
Minimum [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration date | Dec. 31, 2017 | ||
Tax credit carryforward, expiration date | Dec. 31, 2018 | ||
Possible reduction in unrecognized tax benefits resulting from audit settlements | $ 500 | ||
Maximum [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration date | Dec. 31, 2035 | ||
Tax credit carryforward, expiration date | Dec. 31, 2021 | ||
Possible increase in unrecognized tax benefits resulting from audit settlements | $ 500 |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefits - beginning of the year | $ 1,139 | $ 1,065 |
Gross increases related to prior year tax positions | 394 | 166 |
Gross increases related to current year tax positions | 488 | 153 |
Lapse of applicable statute of limitations | (189) | (245) |
Gross unrecognized tax benefits - end of year | $ 1,832 | $ 1,139 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Restricted investments | $ 20.9 | $ 21.1 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | $ 644,231 | $ 546,010 |
Less: Accumulated depreciation and amortization | (205,637) | (171,163) |
Property and Equipment, net | 438,594 | 374,847 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 24,708 | 9,855 |
Building And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 36,269 | 35,267 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 5,016 | 4,419 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 91,302 | 77,887 |
Furniture And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 13,852 | 13,260 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 472,634 | $ 405,322 |
Construction In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | $ 450 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, gross | $ 644,231 | $ 546,010 | ||
Equipment, capital lease obligation | $ 26,400 | |||
Equipment, capital lease obligation, net | 12,300 | 14,700 | ||
Depreciation and amortization expense related to property and equipment | 43,400 | 35,900 | $ 28,300 | |
Amortization expense under capital lease obligation | 2,300 | 2,600 | $ 2,600 | |
Transportation Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, gross | 472,634 | 405,322 | ||
Computer Software and Hardware [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, gross | $ 91,302 | $ 77,887 |
Long-Term Debt and Financing 56
Long-Term Debt and Financing Arrangements - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2011Chassis | |
Line Of Credit Facility [Line Items] | |||||
Maximum unsecured borrowing capacity | $ 50,000,000 | ||||
Line of credit, expiration date | Dec. 31, 2018 | ||||
Number of chassis leased | Chassis | 3,126 | ||||
Chassis, lease agreement period (years) | 10 years | ||||
Capital lease interest paid | $ 600,000 | $ 700,000 | $ 800,000 | ||
Standby Letters of Credit [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Outstanding letters of credit | $ 11,800,000 | ||||
Letters of credit expiration, years | 2,017 | ||||
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 | $ 38,200,000 | $ 41,800,000 | |||
Minimum [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Commitment fee charged on the unused line of credit | 0.10% | ||||
Interest coverage ratio | 2.00% | ||||
Maximum [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Commitment fee charged on the unused line of credit | 0.25% | ||||
Total leverage ratio | 3.00% | ||||
LIBOR rate [Member] | Minimum [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Interest rate under the Credit Agreement | 1.00% | ||||
LIBOR rate [Member] | Maximum [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Interest rate under the Credit Agreement | 1.75% | ||||
Prime Rate [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Interest rate under the Credit Agreement | 0.75% |
Schedule of Outstanding Debt (D
Schedule of Outstanding Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Secured long-term debt | $ 160,692 | $ 133,304 |
Less current portion | (45,163) | (32,409) |
Total long-term debt | 115,529 | 100,895 |
Secured Equipment Notes due in 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 59,836 | |
Secured Equipment Notes due in 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 48,633 | 61,206 |
Secured Equipment Notes due in 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 49,464 | 67,486 |
Secured Equipment Notes due in June 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | $ 2,759 | $ 4,612 |
Schedule of Outstanding Debt (P
Schedule of Outstanding Debt (Parenthetical) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Secured Equipment Notes due in 2021 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2,021 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2021 [Member] | Commencing on 2016 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,016 |
Secured Equipment Notes due in 2021 [Member] | Commencing on 2017 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,017 |
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 2016 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,016 |
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 2019 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2,019 |
Payment Frequency | monthly |
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 | 2.04% |
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 | $ 300 |
Interest rate secured debt | 2.96% |
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% |
Summary of Aggregate Principal
Summary of Aggregate Principal Payments (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 45,163 |
2,018 | 44,466 |
2,019 | 38,187 |
2,020 | 22,677 |
2,021 | 10,199 |
Total Notes | $ 160,692 |
Leases, User Charges and Comm60
Leases, User Charges and Commitments - Future Payments Due (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
Future Payments Due, Capital Lease, 2017 | $ 3,167 |
Future Payments Due, Capital Lease, 2018 | 3,167 |
Future Payments Due, Capital Lease, 2019 | 3,167 |
Future Payments Due, Capital Lease, 2020 | 3,176 |
Future Payments Due, Capital Lease, 2021 | 1,840 |
Future Payments Due, Capital Lease, Total | 14,517 |
Less: Imputed interest | (1,244) |
Net capital lease liability | 13,273 |
Future Payments Due, Operating Leases and Other Commitments, 2017 | 8,998 |
Future Payments Due, Operating Leases and Other Commitments, 2018 | 7,311 |
Future Payments Due, Operating Leases and Other Commitments, 2019 | 5,502 |
Future Payments Due, Operating Leases and Other Commitments, 2020 | 5,274 |
Future Payments Due, Operating Leases and Other Commitments, 2021 | 5,402 |
Future Payments Due, Operating Leases and Other Commitments, 2022 and thereafter | 7,489 |
Future Payments Due, Operating Leases and Other Commitments, Total | 39,976 |
Future Payments Due, Total Leases, 2017 | 12,165 |
Future Payments Due, Total Leases, 2018 | 10,478 |
Future Payments Due, Total Leases, 2019 | 8,669 |
Future Payments Due, Total Leases, 2020 | 8,450 |
Future Payments Due, Total Leases, 2021 | 7,242 |
Future Payments Due, Total Leases, 2022 and thereafter | 7,489 |
Future Payments Due, Leases, Total | $ 54,493 |
Leases, User Charges and Comm61
Leases, User Charges and Commitments - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2016USD ($)Container | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Lease and Rental Expense [Line Items] | ||||
Rental expense | $ 8,300,000 | $ 8,000,000 | $ 8,100,000 | |
Rail transportation charges | 73,700,000 | 74,300,000 | 67,800,000 | |
Minimum commitments on rail owned chassis and containers | 0 | |||
Purchase contract units, containers | Container | 4,000 | |||
Cost of purchasing containers | $ 40,000,000 | |||
Transportation Costs [Member] | ||||
Lease and Rental Expense [Line Items] | ||||
Rental expense | $ 3,600,000 | $ 11,900,000 | $ 13,100,000 |
Guarantees - Additional Informa
Guarantees - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Guarantees [Abstract] | ||
Expiration dates of guarantees | 2,020 | |
Potential maximum exposure under these lease guarantees | $ 1,400 | $ 10,300 |
Liability representing fair value for estimated defaults of guarantees, based on discounted cash-flow analysis | $ 9 | $ 100 |
Stock-Based Compensation Plan63
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Jan. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2007 | Dec. 31, 2003 | Dec. 31, 2002 | Dec. 31, 1999 | Dec. 31, 1997 | Dec. 31, 1996 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of stock options granted since 2003 | 0 | |||||||||
Stock options outstanding | 0 | |||||||||
Shares available for future grant | 995,093 | |||||||||
Compensation expense related to share-based compensation plans | $ 8,479 | $ 7,833 | $ 8,258 | |||||||
Compensation expense related to share-based compensation plans, net of tax | 5,200 | 5,000 | 5,200 | |||||||
Total intrinsic value of options exercised | $ 0 | 0 | 0 | |||||||
Unrecognized compensation cost weighted average period recognized (years) | 2 years 11 months 23 days | |||||||||
Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Total fair value of restricted shares vested | $ 7,500 | $ 8,700 | $ 9,400 | |||||||
Unrecognized compensation cost related to non-vested share-based compensation | $ 20,800 | |||||||||
Restricted stock grants | 420,368 | 338,531 | 293,910 | |||||||
Restricted stock grants, Weighted average grant date fair value | $ 33.46 | $ 37.60 | $ 39.66 | |||||||
Restricted Stock [Member] | Subsequent Event [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock grants, Weighted average grant date fair value | $ 43.75 | |||||||||
Minimum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock vesting period | 3 years | |||||||||
Minimum [Member] | Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock vesting period | 3 years | 3 years | 3 years | |||||||
Minimum [Member] | Restricted Stock [Member] | Subsequent Event [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock vesting period | 3 years | |||||||||
Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock vesting period | 5 years | |||||||||
Maximum [Member] | Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock vesting period | 5 years | 5 years | 5 years | |||||||
Maximum [Member] | Restricted Stock [Member] | Subsequent Event [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock vesting period | 5 years | |||||||||
1996 Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares reserved under long-term incentive plan | 1,800,000 | |||||||||
1997 Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares reserved under long-term incentive plan | 600,000 | |||||||||
1999 Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares reserved under long-term incentive plan | 2,400,000 | |||||||||
Two Thousand Two Stock Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares reserved under long-term incentive plan | 2,400,000 | |||||||||
Stock reserved under long-term incentive plan, number of additional shares distributed | 1,000,000 | 2,000,000 | ||||||||
Employees [Member] | Restricted Stock [Member] | Subsequent Event [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock grants | 324,797 | |||||||||
Outside Directors [Member] | Restricted Stock [Member] | Subsequent Event [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock grants | 27,500 |
Stock-Based Compensation Plan64
Stock-Based Compensation Plans - Schedule of Non-Vested Restricted Stock Activity (Detail) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value Non-vested, Beginning balance | $ 37.02 | ||
Weighted average grant date fair value, Granted | 33.46 | $ 37.60 | $ 39.66 |
Weighted average grant date fair value, Vested | 36.34 | ||
Weighted average grant date fair value, Forfeited | 35.75 | ||
Weighted average grant date fair value Non-vested, Ending balance | $ 35.48 | $ 37.02 | |
Shares Non-vested, Beginning balance | 696,097 | ||
Shares, Granted | 420,368 | 338,531 | 293,910 |
Shares, Vested | (219,951) | ||
Shares, Forfeited | (115,574) | ||
Shares Non-vested, Ending balance | 780,940 | 696,097 |
Stock-Based Compensation Plan65
Stock-Based Compensation Plans - Restricted Stock Granted (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock vesting period | 3 years | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock vesting period | 5 years | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock grants | 420,368 | 338,531 | 293,910 |
Restricted stock grants, Weighted average grant date fair value | $ 33.46 | $ 37.60 | $ 39.66 |
Restricted Stock [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock vesting period | 3 years | 3 years | 3 years |
Restricted Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock vesting period | 5 years | 5 years | 5 years |
Restricted Stock [Member] | Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock grants | 394,243 | 316,531 | 273,910 |
Restricted Stock [Member] | Outside Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock grants | 26,125 | 22,000 | 20,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Expenses related to employer contributions | $ 2.4 | $ 1.9 | $ 1.9 |
Expenses related to deferred compensation plan | 0.3 | 0.3 | $ 0.3 |
Deferred compensation liability | $ 21.1 | $ 21.3 | |
Nonqualified Deferred Compensation Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Percent match by employer on the first 6% of employee compensation | 50.00% | ||
Maximum percent of compensation employer will match | 3.00% |
Legal Matters - Additional Info
Legal Matters - Additional Information (Detail) - Robles Lawsuits [Member] | Aug. 05, 2015PlaintiffEmployee | May 31, 2015Plaintiff | Sep. 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 |
Stock Buy Back Plans - Addition
Stock Buy Back Plans - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2016 | Jul. 31, 2016 | Jun. 30, 2016 | May 31, 2016 | Apr. 30, 2016 | Mar. 31, 2016 | Feb. 28, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 02, 2016 | |
Equity Class Of Treasury Stock [Line Items] | |||||||||||
Purchase of treasury shares (in shares) | 299,931 | 66,422 | 330,265 | 307,798 | 454,729 | 269,099 | 943,983 | 2,672,227 | |||
Purchase of treasury shares | $ 100,000,000 | $ 28,823,000 | $ 18,024,000 | ||||||||
Class A Common Stock [Member] | |||||||||||
Equity Class Of Treasury Stock [Line Items] | |||||||||||
Stock repurchase program, authorized amount | $ 100,000,000 | ||||||||||
Purchase of treasury shares (in shares) | 2,672,227 | ||||||||||
Class A Common Stock [Member] | Employee Restricted Stock Plan [Member] | |||||||||||
Equity Class Of Treasury Stock [Line Items] | |||||||||||
Stock tendered for payments of withholding taxes (in shares) | 73,546 | 77,732 | |||||||||
Purchase of treasury shares | $ 2,500,000 | $ 2,900,000 |
Stock Buy Back Plans - Number o
Stock Buy Back Plans - Number of Shares Purchased and Maximum Value of Shares That yet be Purchased Under Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Aug. 31, 2016 | Jul. 31, 2016 | Jun. 30, 2016 | May 31, 2016 | Apr. 30, 2016 | Mar. 31, 2016 | Feb. 28, 2016 | Dec. 31, 2016 | Jan. 31, 2016 | |
Equity [Abstract] | |||||||||
Total Number of Shares Purchased | 299,931 | 66,422 | 330,265 | 307,798 | 454,729 | 269,099 | 943,983 | 2,672,227 | |
Average Price Paid Per Share | $ 40.92 | $ 41.03 | $ 39.96 | $ 38.34 | $ 38.78 | $ 38.27 | $ 33.97 | $ 37.42 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan | 299,931 | 66,422 | 330,265 | 307,798 | 454,729 | 269,099 | 943,983 | 2,672,227 | |
Maximum Value of Shares that May Yet Be Purchased Under the Plan | $ 12,275 | $ 15,000 | $ 28,199 | $ 40,000 | $ 57,632 | $ 67,932 | $ 100,000 |
Selected Quarterly Financial 70
Selected Quarterly Financial Data (Unaudited) - Summary of Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 978,560 | $ 932,814 | $ 855,557 | $ 805,859 | $ 890,272 | $ 899,869 | $ 899,513 | $ 835,941 | $ 3,572,790 | $ 3,525,595 | $ 3,571,126 |
Gross margin | 120,454 | 111,454 | 114,490 | 108,387 | 116,774 | 105,064 | 101,729 | 89,128 | 454,785 | 412,695 | 370,435 |
Operating income | 30,839 | 29,855 | 34,297 | 28,843 | 35,341 | 33,418 | 29,476 | 18,795 | 123,834 | 117,030 | 83,877 |
Net income | $ 18,244 | $ 17,924 | $ 20,671 | $ 17,965 | $ 22,374 | $ 19,832 | $ 18,467 | $ 10,276 | $ 74,805 | $ 70,949 | $ 51,558 |
Basic earnings per share | $ 0.55 | $ 0.54 | $ 0.61 | $ 0.51 | $ 0.63 | $ 0.55 | $ 0.51 | $ 0.28 | $ 2.21 | $ 1.98 | $ 1.41 |
Diluted earnings per share | $ 0.55 | $ 0.54 | $ 0.61 | $ 0.51 | $ 0.63 | $ 0.55 | $ 0.51 | $ 0.28 | $ 2.20 | $ 1.97 | $ 1.40 |
Valuation and Qualifying Acco71
Valuation and Qualifying Accounts (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Allowance for Uncollectible Trade Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | $ 5,215,000 | $ 6,990,000 | $ 7,446,000 | |
Charged to Costs & Expenses | 90,000 | 270,000 | 129,000 | |
Charged to Other Accounts | [1] | 146,000 | (2,037,000) | (565,000) |
Deductions | [2] | (40,000) | (8,000) | (20,000) |
Balance at End of Year | 5,411,000 | 5,215,000 | 6,990,000 | |
Deferred tax valuation allowance [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 108,000 | 108,000 | 108,000 | |
Charged to Costs & Expenses | 348,000 | 0 | 0 | |
Balance at End of Year | $ 456,000 | $ 108,000 | $ 108,000 | |
[1] | Expected customer account adjustments charged to revenue and write-offs, net of recoveries | |||
[2] | Represents bad debt recoveries |